On April 17, 2024, the Virgin Islands Cannabis Advisory Board (“VICAB”) approved
regulations outlining the requirements for its new adult-use cannabis program, including details regarding the competitive merit-based application process for cannabis business licenses in the U.S. Virgin Islands (“USVI”). The application windows for the various types of available licenses will open over the next several months, with Micro-Cultivator Applications now being accepted and reviewed on a rolling basis as of November 4, 2024.
What Types of Licenses Are Available?
The VICAB is opening up licenses and permits of the following types:
- Cannabis Cultivator License
- Cannabis Manufacturer License
- Cannabis Dispensary
- Cannabis Testing Facility License
- Cannabis Research and Development License
- Micro-Cultivation Permits
- Adult Use Lounge Permits
The Office of Cannabis Regulation (“OCR”) will issue a limited number of licenses to each of the USVI’s three major islands, as follows:
- St. Thomas
- Up to seven Cannabis Dispensary Licenses; and
- Up to 15 Cannabis Cultivation Licenses
- St. John
- Up to three Cannabis Dispensary Licenses; and
- Up to five Cannabis Cultivation Licenses
- St. Croix
- Up to seven Cannabis Dispensary Licenses; and
- Up to 15 Cannabis Cultivation Licenses
The OCR may make more licenses available after January 1, 2025, provided that the OCR has conducted a study demonstrating that demand exceeds or is expected to exceed the current supply of cannabis items being produced by all manufacturing, cultivation, and micro-cultivation permittees. A licensee receiving a Cannabis Dispensary License may also receive a Cannabis Cultivation License; the remainder of authorized Cannabis Cultivation Licenses must be issued to persons who do not possess a Cannabis Dispensary License. The OCR will offer a license for one (1) OCR-Certified Cannabis Testing Facility on each of the islands pursuant to a competitive bid process in accordance with the Government of the Virgin Islands’ standard procurement process. Also, an individual may not possess more than one Micro-Cultivation Permit, and no more than one Micro-Cultivation Permit may be issued for a single address.
Application Timeline
As described above, the application window for Micro-Cultivator Applications opened on November 4, 2024; the VICAB is currently accepting applications on a rolling basis. Relevant
estimated dates released by the OCR for other application types are as follows:
- Research and Development Applications
- November 20, 2024: Research and Development Applications open
- January 7, 2025: Application closes
- March 10, 2025: Licensees awarded
- Dispensary Applications
- December 20, 2024: Dispensary Application opens
- February 4, 2025: Application closes
- March 24, 2025: Licensees awarded
- Manufacturing Applications
- January 7, 2025: Manufacturing Application opens
- February 24, 2025: Application closes
- April 28, 2025: Licensees awarded
- Cultivation Applications
- May 2, 2025: Cultivation Application opens
- June 7, 2025: Application Closes
- August 18, 2025: Licensees awarded
Application Requirements
The Merit-Based Application Process will award available Licenses to applicants with the highest application score for the specific License type on the specific island being sought. An Applicant entity must provide supporting documentation to establish that: (1) its Majority Owner or at least 50.1% of its ownership are Residents of the Virgin Islands as defined by the Virgin Islands Cannabis Use Act (the “Act”) and regulations; (2) all owners and business representatives of the Applicant are not less than 21 years of age; and (3) that the Applicant and its proposed business representatives do not have disqualifying felony offenses as defined by the Act. To be considered a Resident under the Act, an individual must currently reside in the Territory and have resided in the Territory for ten of the last fifteen years before applying for any license or permit, and must maintain residency in the Territory and be subject to personal income tax in the Territory for the entire period such person holds title to a license or permit, subject to limited exceptions.
Site control is also required, and applicants must submit proof of possession of the proposed licensed premises. Although cannabis licenses will be transferrable, all transfers require approval of the OCR, and any transactions involving a change in majority ownership of a license are prohibited for a period of one year after issuance unless the licensee can demonstrate the death/disability of the licensee/permittee or other substantial hardship.
Though the requirements differ depending on the type of license, Applicants will generally be evaluated based on the following criteria:
- Proposed business and financial plans;
- Proposed operating and floor plans;
- Proposed staff and employee training plans;
- Proposed security and recordkeeping plans;
- Proposed safety and labeling plans;
- Criminal background;
- Whether an applicant has had a license suspended or revoked for operating a cannabis business;
- Past Virgin Islands taxes paid and evidence of compliant return filing and payment of taxes;
- Proposed community engagement and cooperation plans, including evidence of support from community members;
- Eligibility for the OCR’s Social Equity plan, which grants additional points during the merit-based application process to license applicants and third-party vendors who are:
- Female-owned or service-disabled Veteran entities;
- Applicants whose ownership class includes individuals who were adversely impacted by law enforcement for sacramental use of cannabis; or
- Applicants whose ownership class includes individuals who were adversely impacted by the criminal justice system for activities now considered legal under the Virgin Islands Cannabis Act
For those interested in applying in the USVI, please do not hesitate to reach out to us. There is much that can be done in advance of the release of the cannabis business license applications, especially considering the high-stakes competitive nature of this application round. Our nationally recognized Cannabis License Application Team has won competitive license rounds in dozens of states and is ready to mobilize into this new market.
