USVI Cannabis Licensing: A Complete Guide to Merit-Based Application Requirements and Scoring

The US Virgin Islands (USVI) has rolled out a merit-based cannabis licensing process, aiming to create opportunities for local businesses and promote social equity. This guide explains everything you need to know to successfully apply for a cannabis license in the USVI, covering application requirements, scoring systems, and tips for maximizing your application score.

Table of Contents

1. Overview of the USVI Cannabis Licensing Program
2. Types of Cannabis Licenses Available in the USVI
3. Understanding Merit-Based Scoring Criteria
4. Social Equity and Local Ownership Requirements
5. Step-by-Step Application Process and Important Dates
6. Tips to Strengthen Your Application for a Higher Score

1. Overview of the USVI Cannabis Licensing Guide

The USVI has implemented a highly regulated cannabis licensing system to manage the local cannabis industry. Governed by the Office of Cannabis Regulations (OCR), this system aims to balance economic growth, public health, and safety while prioritizing local ownership and social equity.

To meet these goals, the OCR has set forth a merit-based scoring process that evaluates each application on a 1,000-point scale. This process helps ensure that successful applicants not only meet operational standards but also contribute positively to the USVI community.

2. Types of Cannabis Licenses Available in the USVI

Each license type in the USVI cannabis industry serves a specific purpose, from retail to cultivation. Here’s a breakdown of the primary license types:

• Dispensary Licenses
  • Purpose: Allows for retail cannabis sales to adults and patients.
  • Fee: $50,000
  • Allocation: 7 on St. Thomas, 3 on St. John, and 7 on St. Croix
  • Hours: Open from 8:00 a.m. to 7:00 p.m.
• Cultivation Licenses
  • Purpose: Permits growing cannabis plants for commercial use.
  • Fee: $20,000
  • Plant Limits: 1,000 flowering plants and 3,000 immature plants per site.
  • Allocation: 15 on St. Thomas, 5 on St. John, and 15 on St. Croix
• Manufacturing Licenses
  • Purpose: Authorizes production of cannabis-infused products, including edibles and oils.
  • Fee: $10,000
  • Special Requirement: Must source 15% of cannabis from local micro-cultivators.
• Micro-Cultivation Licenses
  • Purpose: Small-scale cultivation, exclusive to residents who’ve lived in the USVI for at least three years.
  • Application Process: Awarded on a rolling basis, with no merit-based scoring.
• R&D/Testing Licenses
  • Purpose: Grants facilities the right to conduct quality assurance and safety testing.
  • Allocation: One per island, with additional licenses possible.

3. Understanding Merit-Based Scoring Criteria

A crucial part of the process to get a cannabis license in the US Virgin Islands is the merit-based scoring system, which allocates points based on a variety of criteria. Here’s a breakdown of key categories and how to maximize points in each:

• Business Plan (150-300 Points)
  Applicants must present a comprehensive business plan detailing ownership, funding, and operational timelines. Dispensary applicants can earn up to 300 points, while other licenses cap at 150 points.
• Facility and Environmental Plan (150 Points)
  Points are awarded based on environmental sustainability plans, compliance with zoning laws, and facility location details. Demonstrating a strong commitment to minimizing environmental impact can enhance an application’s score.
• Security and Record-keeping (150-200 Points)
  Security plans are essential to ensure compliance with local safety standards. This includes theft prevention, inventory management, and disposal methods.
• Product Safety and Testing (150 Points)
  Applicants must detail procedures for product safety, including packaging, recall protocols, and testing measures to maintain quality assurance.
• Social Equity Bonus (150 Points)
  Social equity points are awarded to applicants who meet specific criteria, such as past cannabis-related offenses, adverse law enforcement impact due to sacramental cannabis use, or businesses that are majority-owned by women or service-disabled veterans.

4. Social Equity and Local Ownership Requirements

The USVI cannabis licensing system places a strong emphasis on local ownership and social equity:

• Ownership Requirement: All cannabis businesses must be at least 50.1% owned by USVI residents.
• Social Equity Component: Up to 15% of the total score is based on social equity qualifications, benefiting applicants who can demonstrate past hardship or adverse impacts from cannabis laws.

This commitment to equity is designed to ensure that the economic benefits of the cannabis industry remain within the local community.

5. Step-by-Step Application Process and Important Dates

Applying for a cannabis license in the USVI requires meticulous planning and adherence to deadlines. Below is a step-by-step guide to ensure you stay on track:

Step 1: Choose Your License Type

Each license type serves different business needs and has unique eligibility requirements, so select the one that best aligns with your business plan.

Step 2: Prepare Required Documentation

Applications must include a business plan, financial proof, environmental plans, and security strategies.

Step 3: Submit Application within the Designated Window

Each license has its own application window:

• Dispensary Licenses: Dec 20, 2024 – Feb 4, 2025
• Manufacturing Licenses: Jan 7, 2025 – Feb 24, 2025
• Cultivation Licenses: May 2, 2025 – June 17, 2025

Step 4: Await OCR Evaluation and Scoring

Applications are reviewed and scored by the OCR, with licenses awarded based on merit and compliance with all USVI requirements.

6. Tips to Strengthen Your Application for a Higher Score

Maximizing your score on the merit-based application requires strategic planning. Here are some tips:

1. Develop a Strong Business Plan
   Outline all operational, funding, and timeline details clearly to maximize points. Be transparent about ownership and include any unique qualifications that strengthen your case.
2. Emphasize Environmental Responsibility
   Include energy-efficient plans and sustainability measures in your environmental plan to demonstrate commitment to the USVI’s ecological needs.
3. Highlight Social Equity Qualifications
   If applicable, make sure your application highlights any relevant social equity qualifications to secure the 150 bonus points available in this category.
4. Create a Detailed Security and Safety Plan
   Detail all safety and security measures thoroughly, including inventory management, theft prevention, and employee training.
5. Stay Updated on Regulatory Changes
   Licensing requirements and deadlines may change, so monitor the OCR website for updates to avoid any surprises during the application process.

Conclusion

Securing a cannabis license in the U.S. Virgin Islands involves understanding the merit-based scoring system and meeting all application requirements. By focusing on a strong business plan, robust environmental policies, and a commitment to social equity, applicants can improve their chances of receiving a high score and securing a license.

For the latest application details, visit the Office of Cannabis Regulations website

Need Help Navigating the USVI Cannabis Licensing Process?

Applying for a cannabis license in the U.S. Virgin Islands can be complex, with strict requirements and deadlines. At Collateral Base, our team of cannabis law experts is here to guide you through every step, from choosing the right license type to preparing a strong, compliant application. Contact us today to schedule a consultation and take the next step toward your cannabis business goals in the USVI!