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United States Virgin Islands Overview
The United States Virgin Islands (USVI) cannabis business adult-use cannabis application and licensing process is regulated by the Office of Cannabis Regulations (OCR) and the Virgin Island Cannabis Advisory Board.
Entities that meet the eligibility requirements will be able to apply for cannabis business licenses and permits during open application windows. The application process is merit-based and scored using a point system.
Successful applicants will receive a conditional license, before being approved to operate following a facility and compliance inspection.
First Adult-Use Cannabis Business License Application Round
The first adult-use cannabis business license application round will be announced before the end of October 2024. This announcement will reveal application window dates, and any final requirements to be considered by applicants.
The OCR will decide how many licenses and permits to issue based on analysis of supply and demand, public safety, and market surveys. They will also consider local market conditions for each island. Regardless of these results, the total number of licenses cannot exceed the limits set in section 787.
USVI Cannabis Licenses and Permits
There are a total of nine (9) cannabis licenses and permits available in the USVI territory. They are as follows:
Licenses
- Cannabis Cultivation License
- Cannabis Manufacturing License
- Cannabis Dispensary License
- Cannabis Research and Development License
- Cannabis Testing Facility License
Permits
- Adult-Use Lounge Permit
- Cannabis Use Permit
- Cannabis Temporary Use Permit
- Micro-Cultivation Permit
Each of these licenses authorizes different activities that make up the USVI cannabis supply chain. Beyond the initial application round that will be announced before the end of October 2024, the OCR may add additional licenses after January 1, 2025. This can only happen if there is a demonstrated demand for cannabis items, and the current operations won’t meet that demand within the next 12 months.
All licenses must be renewed on an annual basis, and receive a Certificate to Operate from the OCR before beginning any cannabis related activities authorized by the license.
USVI Cannabis Business Licenses
USVI Cannabis Cultivation License
Cultivators are authorized to cultivate, cure, process, internally test, store, package, and label cannabis. Additionally, cultivators can store, transfer, receive, purchase, and sell cannabis to other licensed cannabis businesses and testing facilities on the same island.
- Cannot cultivate more than 1,000 flowering plants at single a time
- Cannot cultivate more than 3,000 or 4,000 immature cannabis plants at a single time. The exact value is unconfirmed.
In addition to the general application requirements, the following needs to be provided as a part of the application:
- Business plan (150 points)
- Cultivation plan (150 points)
- Evidence of suitability for the proposed cannabis facility/licensed premises (150 points)
- SOPs and employee training plan (50 points)
- Security and record keeping plan (150 points)
- Safety and labeling plan (150 points)
- Emergency plan (50)
- Social Equity eligibility (150)
USVI Cannabis Dispensary License
The US Virgin Islands Dispensary license authorizes the sale of cannabis to adults over the age of 21, medical patients, designated caregivers, and the parent or legal guardian of a qualifying patient who is under the age of 21. This license also allows you to store, sell, transport, and transfer cannabis items to and from cultivation licensees, manufacturing licensees, micro-cultivation permits, and testing facilities on the same island.
Note: Cannabis dispensaries with cultivation or manufacturing licenses must source 70% of products from unaffiliated third parties, and all dispensaries must source 15% from micro-cultivation permit holders.
In addition to the general application requirements, the following needs to be provided as a part of the dispensary license application:
- Cannabis dispensary business plan, operating plan, financials, floor plan (300 points)
- Descriptions of knowledge and experience (200 points)
- Staffing and training plans (100 points)
- Security and record keeping plans (200 points)
- Emergency plan (50 points)
- Social Equity eligibility (150 points)
USVI Cannabis Manufacturer License
Authorized to manufacture, process, internally test, package, label, store, sell, purchase, receive, transfer, and transport cannabis items to other licensees on the same island.
In addition to the general application requirements, the following needs to be provided as a part of the application:
- Business plan (150 points)
- Operations plans (150 points)
- Evidence of suitability for the proposed cannabis facility/licensed premises (150 points)
- Employee training plan (50 points)
- Security and recordkeeping plan (150 points)
- Safety and labeling plan (150 points)
- Emergency plan (50)
- Social Equity eligibility150 points
USVI Cannabis Research and Development License
Research & Development license holders can purchase, store, and transfer cannabis and cannabis items from other licensees or micro-cultivation permittees, and store, sell, transfer, and transport cannabis items to licensees within the legal limitations. R&D licenses holders can also:
- Licensees can test, package, and label cannabis items.
- Conduct experiments on all forms of cannabis.
- Perform product development and clinical research, including testing on edibles, topicals, and oils.
- Research the safety and efficacy of cannabis for medical treatment.
- Conduct genomic, agricultural, and strain development research for medicinal cannabis products.
- Sell seeds and immature plants to other licensees.
- Cultivate up to
- 4,500 immature plants under 12 inches in height.
- 4,000 immature plants over 12 inches.
- 100 flowering plants.
In addition to the cannabis license requirements outlined in the general application info, the following needs to be provided:
- Business plan (200 points)
- R&D/cultivation plans (250 points)
- Evidence of suitability for the proposed cannabis facility/licensed premises (150 points)
- Employee training plan (50 points)
- Security and record keeping plan (150 points)
- Emergency plan (50 points)
- Social Equity eligibility (150 points)
USVI Cannabis Testing Facility License
Testing Facility license holders can acquire, possess, analyze, test, and transport cannabis items from cannabis businesses/other authorized entities. The purpose of this license is to provide testing services for quality assurance, product development, and labeling accuracy
Some of the mandatory testing areas include:
- CBD and THC Potency/measuring cannabinoid levels in products.
- Pesticides
- Microbial Contaminants
- Residual Solvents
- Yeast and Mold
Every harvest or production batch is tested before being sold or transferred. This applies to cannabis flower, trim, and pre-rolls for cultivation licensees, and to all production batches for manufacturing licensees.
The OCR will offer a license for one certified testing facility on each of the islands of St. Thomas, St. Croix, and St. John through a competitive bidding process.
USVI Cannabis Permits
USVI Micro-Cultivation Permit
A Micro-Cultivation permittee can cultivate up to 50 flowering cannabis plants and no more than 200 immature plants at any given time. Cannabis cultivated with the Micro-Cultivation permit is intended for commercial use only, and it must all be physically sold or transferred. An individual can only hold one micro-cultivation permit at a time.
A Micro-Cultivation Permittee cannot hold any interest in any other Cannabis Business License. This means that the owner of a Cannabis Business License also can not hold a Micro-Cultivation Permit. An entity/individual can only hold one micro-cultivation permit at a time.
To get a Micro-Cultivation permit you need to:
- Meet all general application requirements.
- Meet eligibility requirements.
- Complete an operational plan with site description, cultivation area, location, and more.
- Complete descriptions of cultivation methods, security plans, record-keeping procedures, harvesting, and storage plans.
If the number of applications exceeds the available Micro-Cultivation Permits, applications will be evaluated on their merits, and the Social Equity Plan will be used to prioritize applicants with the highest scores.
USVI Adult-Use Lounge Permit
The Adult-Use Lounge Permit authorizes the operation of an on-site designated consumption area where individuals 21 years or older can consume cannabis products. All cannabis consumption under this permit needs to take place in an area that’s been authorized by the OCR. Cannabis consumption areas have to be separate from dispensaries, and the smoke from the lounge needs to be undetectable in the dispensary.
Restrictions with the Adult-Use Lounge Permit
- No sale of cannabis, cannabis products, or accessories can occur within the lounge unless it is part of a US Virgin Islands dispensary adjacent to the lounge.
- Individuals under 21 are prohibited from entering or remaining in the designated consumption area.
- Lounges must comply with all Virgin Islands weed laws regarding smoking, including the Virgin Islands Smoke-free Act.
To get an Adult-Use Lounge Permit businesses must apply and receive approval from the OCR before operating and they must ensure that all of the rules are continually followed. This includes all security, layout, and operational requirements.
USVI Cannabis-Use Permit
This permit authorizes the consumption of cannabis products within a designated consumption area. This permit is similar to the Adult Use Lounge Permit but can apply to a wider range of locations, not just lounges.
Restrictions with the Cannabis-Use Permit
- No sale, transfer, or distribution of cannabis items is allowed on-site unless done through a dispensary license.
Unauthorized sale or transfer must be prevented. - The permit holder must maintain possession of the designated consumption area through ownership, lease, or another valid arrangement.
To get a Cannabis-Use Permit businesses/individuals need to apply and obtain OCR approval and provide a floor plan identifying where cannabis consumption will take place.
USVI Temporary Cannabis-Use Permit
Grants temporary permission to have a designated cannabis consumption area for specific dates and times. For example, an event space can have an area where attendees can consume cannabis, and the permit could be authorized to last the duration of the event.
Restrictions with the Temporary Cannabis-Use permit
- Similar restrictions as the Cannabis Use Permit, including no sales within the consumption area unless permitted through a dispensary license.
- Temporary permits are time-limited and specific to the event location and duration.
To get a Temporary Cannabis-Use permit, applicants must submit an operational plan detailing the event’s duration, the expected number of people, verification of attendees’ ages (21+), and obtain approval from OCR.
Proof of consent from the property owner is required if the applicant doesn’t own the event location.
USVI Cannabis License Eligibility & Suitability Requirements
The following list outlines the basic eligibility requirements that applicants must meet to qualify for licensure. All eligibility requirements must be met to submit an application.
Applicants must:
1. Be 21 years of age or older.
2. Must not have any disqualifying offenses.
a. A “Disqualifying Felony Offense” is a crime considered a felony where the person was convicted. It doesn’t include crimes where the sentence is finished, if the crime is no longer illegal. Therefore, this only applies if the crime happened before Act No. 8680 was introduced, or if the felony was handled by another authority.
3. At least 50.1% of the entity holding a license must be owned by USVI residents. Must have lived in the USVI for at least 10 of the last 15 years to be considered a USVI resident. For the micro-cultivation permit, residents must have lived in the USVI for at least three (3) consecutive years and a cumulative total of at least 7 years.
4. Must consent to, and complete a fingerprint-based criminal background check.
5. Need to demonstrate that the entity applying has sufficient capital to fund the project. This can be in the form of bank statements, irrevocable lines of credit, or the equivalent.
6. You cannot apply if an immediate family member held elected office in the executive or legislative branches of the USVI government, was employed by the Department of Licensing and Consumer Affairs or the OCR, or was a member of the cannabis advisory board in the last 12 months.
USVI Cannabis Business General Application Requirements
Every cannabis business license and permit has some varying application requirements that are dependent on the license or permit type. The general application requirements for all licenses and permits are as follows:
- Fingerprints of each owner, member, partner, or financial interest holder.
- Personal information (name/known aliases, all mailing addresses in the last 15 years, email address, phone number, social security number of each owner and interest holder).
- Consent for background checks.
- All requested financial information.
- Proof of meeting the residency requirement.
- Proof of age (21+).
- No disqualifying offenses.
- Description of corporate structure.
- Address and detailed diagram of the proposed licenses premises, showing placement of cameras, boundaries of premises, and more.
- Proof of possession of the proposed licensed premises by the applicant.
- Proposed emergency response plan.
- An affidavit by each owner and financial interest holder.
- Other required documents dependant on the license type.
- Non-refundable application fee at the time of submission.
If the applicant for a license or financial interest is a business, the following details must be provided:
For Partnerships
- List each partner’s name and their ownership percentage (both current and fully diluted).
- Include the partnership agreement and proof of residency for each partner.
For Limited Liability Companies (LLCs)
- List each member’s name and their ownership percentage (both current and fully diluted).
- Provide the operating agreement, the names of officers, and proof of residency for each member.
For Corporations
- List each shareholder’s name and ownership percentage (both current and fully diluted).
- Provide the certificate of incorporation, corporate officers’ names, and proof of residency for each shareholder.
- Include a list of all shareholders and their ownership percentages.
For All Business Entities
- Provide a list of all officers who handle day-to-day operations.
USVI Cannabis Permit Application Requirements
- Applicants must submit an application form provided by the OCR.
- Site Visit Consent: The applicant must consent to a site visit by the OCR.
- Background Check: The applicant must consent to a background check.
- Non-Refundable Fee: A non-refundable permit application fee must be submitted along with the application.
USVI Cannabis Licensing Fees
The OCR will create rules to set reasonable fees for applications, renewals, and other necessary fees. All money collected from these fees will go into the Cannabis Fund. The Cannabis Fund will support the operation of the OCR, establish cannabis testing facilities, provide job training and business support, fund research on cannabis, and create programs to prevent substance abuse. This fund will also be built from three-quarters of the 18% mandatory sales tax on cannabis products sold in the USVI.
In accordance with the Act, cannabis application fees cannot surpass the following amounts:
- Micro-Cultivation Permit: $1,000
- Adult Use Lounge Permit: $1,500
- Cannabis Cultivation License: $20,000
- Cannabis Dispensary License: $50,000
- Cannabis Manufacturing License: $10,000
The OCR will also set fees for changes to ownership, location, or modifications to a licensed business. These fees cannot be increased by more than 10% of the previous amount set by the OCR.
Any fees that are missing from the list above have not yet been disclosed by the OCR.
Vertical Integration
License applicants can apply for any combination of cannabis business licenses, excluding the Cannabis Testing Facility License. This means that one entity can hold a cannabis cultivation, dispensary, manufacturing as well as a research and development license at the same time.
The activities authorized by these licenses can all take place at one location if all applicable regulations and laws are being followed. If necessary, applicants may need to find additional locations to operate compliantly.
There are additional restrictions placed on permits, which determine their eligibility to be held by cannabis licensees. Refer to the permit requirements below for more information.
Note: A Micro-Cultivation permittee cannot hold any interest in any other cannabis business license. Therefore, entities with a cannabis business license also cannot have a Micro-Cultivation permit.
USVI Social Equity Plan
In the US Virgin Islands, there is no specific licensing round for Social Equity (SE) applicants. Any applying entity that meets the of the below criteria will receive 150 extra points out of 1000 in the application scoring.
- Applications where the majority ownership is held by individuals or groups affected by the criminal justice system. This can be demonstrated if the applicants or their family members (such as a parent or guardian) were arrested or convicted for activities that are now legal under the current Virgin Islands weed laws.
- Applications with a majority ownership belonging to religious groups that faced legal action for using cannabis for religious purposes, with proof of membership in a certified religious organization.
- Applicants who qualify as female-owned entities.
- Applicants who qualify as veteran-owned businesses by service-disabled veterans.
Why Work With CannDelta?
Looking for a cannabis consultant? Partner with CannDelta to access a dedicated team committed to your success. With extensive experience across North America, we offer valuable insights into the ever-evolving cannabis industry. Our team is highly knowledgeable about the US Virgin Islands’ regulatory landscape and equipped with the tools to help you launch your cannabis business smoothly. Here’s how we can assist:
Enter the cannabis market confidently with our comprehensive support. We help prepare, submit, and monitor your license application to ensure it meets compliance standards and stands out in the competitive market.
Business Plan Development:
Build a strong foundation for your cannabis business with our tailored business plans that meet regulatory requirements and promote sustainable growth.
Operational Plans and Procedures:
Our consultants create detailed operational plans that comply with the US Virgin Islands’ cannabis regulations and safeguard your business assets.
Zoning Support & Site Audits:
CannDelta provides zoning and location assistance, ensuring your site meets all cannabis business compliance requirements, helping you pass necessary site audits.
Site Audits and Inspections:
Stay compliant with our thorough site audits. We identify potential issues and offer solutions to maintain compliance and improve operational efficiency.
Marketing Package:
Stand out in the US Virgin Islands’ cannabis market with our marketing support. We help you build your brand and develop effective strategies to establish a strong presence.
Employee Staffing and Training Plan:
We offer strategic hiring and customized training programs to prepare your team for success in the cannabis industry.
Frequently Asked Questions
How do I Open a Dispensary in the US Virgin Islands?
You can open a dispensary in the Virgin Islands by submitting a dispensary license application during an open application window. The first adult-use application window will be opening in the fall of 2024. To win a license, the applicants will need to meet the eligibility requirements, and submit all of the required application components. This includes a cannabis dispensary business plan, security and record keeping plans, staffing and training plans, having a compliant property, and more. It’s important to complete the application correctly and ensure you qualify before applying since licenses will be issued based on merit and a scoring system.
What Types of Cannabis Licenses are Available in the US Virgin Islands?
There will be five (5) adult-use cannabis licenses available in the US Virgin Islands, and four (4) adult-use permits. The licenses that will be available for applications are the Cannabis Cultivation License, Cannabis Manufacturing License, Cannabis Dispensary License, Cannabis Research and Development License, and Cannabis Testing Facility License.
How Much Does it Cost to Get a Cannabis License in the US Virgin Islands?
The exact applications, certificate to operate, and annual renewal fees for USVI cannabis licenses has not yet been fully disclosed by the Office of Cannabis Regulations (OCR). However, the cannabis laws state that the application fees for cannabis business licenses cannot exceed the following values:
1. Micro-Cultivation Permit: $1,000
2. Adult Use Lounge Permit: $1,500
3. Cannabis Cultivation License: $20,000
4. Cannabis Dispensary License: $50,000
5. Cannabis Manufacturing License: $10,000
How Do I Get a License to Grow Weed in the US Virgin Islands?
There are two different ways to legally grow cannabis in the US Virgin Islands with a license or a permit. During an open application window, applicants can apply for a Cannabis Cultivation License, or a Micro-Cultivation Permit. Each of these licenses allows different amounts of cannabis to be cultivated. All cannabis grown and harvested under the Cannabis Cultivation license or Micro-Cultivation permit is intended for commercial use only.
Do I Need a Cannabis Business License in the US Virgin Islands?
You need a cannabis license in the US Virgin Islands to start an adult-use cannabis business. To get a license, businesses or entities need to apply for a license during an open application window. Winning a license depends on whether the applicant meets the eligibility requirements, and how comprehensive their application is. The licenses that will be available for applications are the Cannabis Cultivation License, Cannabis Manufacturing License, Cannabis Dispensary License, Cannabis Research and Development License, and Cannabis Testing Facility License.
