The US Virgin Islands (“USVI”) is finally inching closer to launching a dual medical and adult-use cannabis program. Earlier this week the USVI Office of Cannabis Regulation (“OCR”) announced that applications for cultivation licenses and micro-cultivation permits are set to open on Monday, March 31, 2025. OCR has not yet stated when dispensary license applications will become available. Although the official announcement from OCR noted that there would be more information to follow regarding specific instructions and information sessions for this application round, we already know a great deal about what the applications will require. The OCR regulations set forth, in granular detail, application requirements and qualifying criteria for interested parties. Notably, the OCR will award licenses on a competitive basis, meaning that it will judge applications against one another and award licenses to the applicants deemed most worthy and capable of operating a cannabis business in the USVI. In terms of the competitive process, the OCR regulations make clear that the “OCR shall issue Licenses pursuant to a Merit-Based Application Process, whereby available Licenses are awarded to Applicants with the highest application score for the specific license type and on the specific island being sought.” Conditional licenses will be awarded to applicants receiving the highest number of points and the OCR will not issue a final license until it has inspected and approved the licensed premises and “verified that the premises and operational plans are in compliance” with the Virgin Islands Cannabis Use Act (“Act”) and OCR regulations. The Act establishes the following limits for cultivation licenses: For St. Thomas: Up to 15 cannabis cultivation licenses. For St. John: Up to 5 cannabis cultivation licenses. For St. Croix: Up to 15 cannabis cultivation licenses. A licensee that receives a cannabis cultivation license may also hold a cannabis dispensary license. 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. All applicants (regardless of license type) will be required to submit the following:

• Fingerprints of each owner, member, partner, or “Financial Interest Holder”;
• Personal history information concerning the applicant’s qualifications for a license, including, at a minimum, name, mailing addresses for the past 15 years, email address, telephone number and SSN for each owner and financial interest holder (and consent to an FBI/NCIC background check);
• A description of the corporate structure for the applicant;
• For applicants that are Business Entities:
  • If the applicant is a partnership, the name and percentage interests of each partner holding any interest in the partnership, the partnership agreement and certification of residency for each partner;
  • If the applicant is an LLC, the name and percentage interest of each member, the operating agreement, the name of each officer and the certification of residency for each member;
  • If the applicant is a corporation, each shareholder of any of the corporation’s stock, the certificate of corporation, a copy of its articles of incorporation, the name of each corporate officer, a list of all shareholders with a percentage ownership and a certification of residency for each shareholder; and
  • A list of all officers with day-to-day operational control over the business.
• Information concerning financial and controlling associations and interests of other persons associated with the business;
• Evidence that the applicant is qualified to do business in the USVI;
• Criminal and civil litigation history for each owner, Financial Interest Holder, Cannabis Business Representative, executive officer, director and manager of the applicant;
• Federal EIN;
• A proposed emergency response plan; and
• Site control/proof of possession of the proposed licensed premises.

Critically, the Act and OCR regulations require that all applicants be majority owned by Virgin Islands residents. Indeed, the stated purpose of the Act is to “establish control over the commercial cultivation, manufacture and sale of cannabis as a business, which shall be maintained by the residents of the Virgin Islands pursuant to law and regulation.” Any applicant must submit documentation to establish that it meets the residency requirement in Section 776 of the Act, including the dates when residency in the Virgin Islands began for each Owner with any ownership interest in the Applicant. Cultivation license applicants must also submit, among other narratives:

• A business plan, including an estimated timeline between license issuance and commencement of operations;
• A plan describing the suitability of the proposed cultivation/manufacturing facility;
• General standard operating procedures in compliance with the Act and OCR regulations;
• An employee training plan, including:
  • A staffing plan;
  • An employee handbook; and
  • A plan to provide a safe, healthy, and economically beneficial working environment for its employees.
• A security and recordkeeping plan, including:
  • A theft and diversion plan;
  • A plan for recordkeeping, tracking and monitoring inventory;
  • A plan for the destruction and disposal and unused cannabis; and
  • A plan for transport of cannabis.
• A cannabis product safety and labeling plan, including:
  • A recall plan; and
  • A plan for the testing of cannabis and ensuring that all cannabis is free from contaminants.
• An emergency plan.

Comprising St. Thomas, St. John and St. Croix, the USVI have long been a desired vacation destination for US citizens and foreign nationals alike owing to their dramatic hillscapes, lush rainforests and unspoiled beaches. This healthy influx of annual tourists from around the globe may make the USVI a far more attractive cannabis market than its population of roughly 100,000 year-round residents might otherwise indicate. For those interested in applying in the USVI, please do not hesitate to reach out to us. Our nationally-recognized Cannabis License Application Team has won competitive licenses rounds in dozens of states and is ready to mobilize into this new market.