Act 8680, amended in 2023, now permits the US Virgin Islands (USVI) and its residents the use of medical, recreational, and sacramental cannabis among its territories. Qualified individuals can enter merit-based applications to win a cultivation, manufacturing, and dispensary cannabis license, beginning December 2024.

The Virgin Islands, located between the Atlantic Ocean and Caribbean Sea, is divided between Britain and the US. Three main islands, St. Croix, St. John, and St. Thomas, host the majority of the USVI population, along with 50 smaller surrounding islets and cays. Although the population is around 87,200 (according to the 2020 US Census), the islands welcome around 3 million tourists per year.

Act 8680

The Office of Cannabis Regulation (OCR) was created under Act 8680, the legislation governing cannabis among the USVI. The OCR is governed by the Virgin Islands Cannabis Advisory Board (VICAB or the Board), an eleven-member committee that is selected by the Governor. The Board is comprised of individuals from different official sectors, including one representative from the Department of Health, one representative from the Department of Agriculture, one representative from the Department of Tourism, one representative from the University of Virgin Islands, and two healthcare practitioners recommended by the Board of Medical Examiners.

Religious and Sacramental use

The USVI supports individuals who are a part of an organized religion in possessing, using, cultivating, and consuming cannabis for sacramental purposes. The religious organization and its Sacramental Users must obtain a cannabis license or permit before performing any cannabis activities. No more than six flowering cannabis plants and six immature cannabis plants can be cultivated at once, and said cannabis may not be available for sale. Although this permit is unique, Sacramental Users must continue to abide by the provision of title 19 Virgin Islands Code, chapter 53A and are prohibited from smoking in public.

Medical

Qualifying patients who have: 1) been a resident in the USVI for 45 days or more; and 2) have a qualifying medical condition, can apply for a Medical Cannabis Patient Card, which is valid for two years following the issuance date. Individuals must be at least 21 years of age or older. If the individual is under 21, they must have a designated caregiver.

Social Equity

Qualified individuals can gain “bonus” points in the merit-based application process if they: 1) were adversely impacted by the criminal justice system regarding cannabis; 2) are a member of a religious group who was adversely impacted by law enforcement; or 3) are a female-owned or service-disabled entity. Up to 150 points, or 15% of the total score, can be obtained.

Application Requirements

As stated in the Rules and Regulations for the OCR, officiated by the VICAB and Governor on May 4, 2024, applications for a cannabis license are merit based (as opposed to a lottery). Instead of picking a winner at random, the applications are ranked by the OCR and the highest submission is awarded a license. In short, it is vital that applicants start preparing their documents ahead of time to truly be considered in this competitive race.

As always, there are caveats to who can and can’t apply. At least 50.1% ownership of each application must apply to a USVI resident. A resident, as defined by the OCR and VICAB, includes “any person who currently resides in the Territory [USVI] and has resided in the Territory for ten (10) of the last fifteen (15) years prior to applying for any License or Permit.”

All applicants must provide the following, minimum documents:

· Fingerprints and Background Check

· Personal History/Information

· Proof of Possession of Proposed Licensed Premises

· Federal Employer Identification Number

· Affidavit

· Org Chart

· Financial Plan

· Security Diagram

· Proposed Emergency Response Plan

Depending on which license the application is for, the individual must provide additional documents that will be graded by the OCR.

Cultivation

Business Plan – 150 points

Cultivation Plan – 150 points

Sustainability Plan – 150 points

Employee Training Plan – 50 points

Security and Recordkeeping Plan – 150 points

Safety and Labeling Plan – 150 points

Emergency Plan – 50 points

Social Equity Plan (if applicable) – 150 points

Manufacturing

Business Plan – 150 points

Operational Plan – 150 points

Sustainability Plan – 150 points

Employee Training Plan – 50 points

Security and Recordkeeping Plan – 150 points

Safety and Labeling Plan – 150 points

Emergency Plan – 50 points

Social Equity Plan (if applicable) – 150 points

Dispensary

Business Plan – 300 points

Knowledge and Experience – 200 points

Staffing and Training Plan – 100 points

Security and Recordkeeping Plan – 200 points

Emergency Plan – 50 points

Social Equity Plan (if applicable) – 150 points

There is no official timeline for when the application window will begin, nor how many total licenses, including microbusinesses, will be awarded at this time (November 2024).

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group have worked to secure medical marijuana and recreational cannabis businesses in 37 states. Follow us on social media to stay up to date with more security best practices and cannabis industry updates!