It has been over two years since Governor Albert Bryan, Jr., signed Virgin Islands Cannabis Act into law — a pivotal move aimed at expanding the U.S. Virgin Islands’ cannabis industry and facilitating the expungement of certain cannabis-related convictions within the territory. Now, after nearly a year since the Governor approved the Office of Cannabis Regulations’ (“OCR”) final proposed regulations, the OCR is preparing to take a significant step forward. On March 31, 2025, the OCR intends to officially open its first licensing application process, focusing on cultivators and micro-cultivators.
With the application period rapidly approaching, it is essential for prospective applicants to understand the requirements, guidelines, and opportunities that lie ahead. Let’s take a closer look at what aspiring cannabis entrepreneurs need to know to successfully navigate the licensing process.
Cultivation Licenses
To apply for a cultivation license in the U.S. Virgin Islands, there are various statutory and regulatory requirements prospective applicants must meet to acquire a license in this competitive application process. Pursuant to the OCR’s regulations, at least 50.1% of the applicant entity holding the license on a fully diluted basis must be residents of the Virgin Islands. A “resident” is defined as “as any natural person who currently resides in the [Virgin Islands] for ten (10) of the last fifteen (15) years prior to applying for a license or permit.” In addition to ensuring majority ownership ties to residents of the Virgin Islands, the applicant’s Cannabis Business Representative must be a current resident of the Virgin Islands at the time of applying as well as during operations, and he or she must have experience in the field for the license applied for.
As the OCR will be holding a merit-based scoring application process, applicants must ensure they can obtain as many points as possible to secure a limited cultivation license. In accordance with the Act, cultivation licenses are limited by Island in the following manner: St. Thomas and St. Croix can have up to fifteen (15) cultivation licensees and St. John can have up to five (5) cultivation licensees. For those looking to secure a facility to cultivate cannabis in the Virgin Islands, they must ensure that it is not located within 250 ft. of a school or house of worship nor the perimeter of any cruise ship-bearing dock or pier in the territory.
Those applying as a “social equity” applicant will have the ability to acquire up to an additional 150 points if they meet such eligibility requirements. A “social equity” applicant is one who is either: (i) majority owned by those with prior non-violent cannabis offenses; (ii) majority owned by those who are members of a religious group who were impacted by law enforcement for Sacramental Use of Cannabis; (iii) female-owned entities; and (iv) service-disabled veteran-owned entities.
From background checks and ownership disclosures to corporate structure and funding, prospective applicants will be required to provide comprehensive information and documentation for their proposed operations. Moreover, applicants applying for a cultivation license will need to provide a competitive business plan, cultivation plan, facility plan, employee training plan, security and record-keeping plan, product safety and labeling plan, and emergency plan that account for the overall score of the application. Those interested will further need to provide the $5,000 dollar application fee to submit their application to the OCR, and if awarded, a $20,000 dollar license fee.
Micro-Cultivator Permits
To ensure resident involvement in their new cannabis program, the OCR will issue Micro-Cultivation permits to current residents who have resided in the Virgin Islands for at least three (3) years and has no less than seven (7) cumulative years of residency at the time of application. Such prospective applicants must further possess a valid farmer’s license or in the process with the Department of Agriculture and Department of Licensing and Consumer Affairs. To note, a Micro-Cultivator is limited to cultivate no more than fifty (50) flowering cannabis plants and two hundred (200) immature cannabis plants at a single time. For those interested, applicants will be required to provide a $1,000 dollar application fee at time of submission.
Conclusion
The road to establishing a vibrant cannabis industry in the U.S. Virgin Islands is unfolding, offering both economic potential and a path toward restorative justice. As the OCR prepares to open applications for cultivators and micro-cultivators, now is the time for interested individuals to gather crucial information, fine-tune their applications, and position themselves for success. With the application window set to remain open for sixty (60) days, prospective entrepreneurs should take proactive steps by connecting with industry experts to guide them in securing their place in the territory’s emerging cannabis market. Contact us today to discuss your options!