December 19, 2024 By Stephen L. Bartlett
In the wake of a prior statement disavowing a schedule that had been widely circulated and purported to outline the Office of Cannabis Regulation’s (“OCR”) timeline for opening cannabis license applications, on December 16, 2024, the OCR convened an open forum for stakeholders to set the record straight on the OCR’s timeline and also address some unanswered questions concerning the impending cannabis license application round in the USVI. At the very outset of the forum, the OCR confirmed that the schedule that many believed to be an official publication of the OCR did not accurately reflect OCR’s current licensing timeline and should not be relied upon. The OCR then shared a short slide deck (reproduced below) highlighting some critical procedural and substantive aspects of the upcoming application round and licensing process. For the most part, the slide deck tracks the language of the OCR’s rules and regulations and the USVI Cannabis Use Act.
In navigating through the slide deck, the OCR confirmed that the first license application to become available would be for cultivation licenses, which should occur in early 2025 (hopefully January, according to OCR). At the same time the cultivation licenses become available, the OCR will also issue a Request for Proposal (“RFP”) for testing laboratories, the only license type that will be issued to an RFP process and not through the merit-based application process applying to all other license types. Unlike other license types, there is no limit on the number of testing laboratories that may be licensed as part of this initial application round. The OCR also confirmed that there is no timeline for opening dispensary license applications but that the applications likely would not become available until the application window for cultivation licenses closes. According to OCR, it would be imprudent to commence the dispensary license application process until the OCR understands more concretely the demand for cultivation licenses and the quantities of cannabis that will ultimately be produced to support the USVI market.
Regarding the application format, OCR confirmed that each application will have discrete narrative sections with point values assigned to each section, totaling up to a maximum of 1000 points per application. Once an application is opened for a specific license type, it will be open for at least 60 days. An evaluation committee will review all applications using a grading rubric developed by a third-party consultant.
Critically, the OCR confirmed that there will be no page limits for applications. This was the single most significant development shared during the open forum. In a merit-based application where applications will be judged against one another, the absence of page limits underscores the need for interested parties to organize their application teams and begin drafting and compiling application materials as soon as possible. Although no license applications have yet been released to the public, the OCR confirmed several times that the applications will very much mirror the requirements outlined in OCR’s existing rules and regulations. In other words, those interested in applying should not expect any surprises once the applications are released.
Finally, in response to dozens of questions that were (quite admirably) fielded and answered by OCR during the open forum, OCR confirmed that:
- Contemporaneously with the publication of applications for specific license types, OCR will also publish an application guide and instructions for each application.
- Cultivation will be permitted only in certain areas zoned for it. These will include A1, A2, R1 and R2 zones. The OCR is in the process of developing a comprehensive zoning map to identify all subject parcels.
- Entities awarded a cultivation license must begin cultivation within 6 months of licensure.
- Residency requirements will need to be satisfied through the submission of tax returns and perhaps other confirmatory documentation.
- A single individual/entity may own different license types located on the same island but may not own two of the same license types located on the same island. A single individual/entity may own multiple dispensaries as long as they are on different islands.
- Scores for all applications will be made public in accordance with the USVI Cannabis Use Act, but OCR does not expect to publish the applications.
- Extensive background checks will be required for all license owners/financial interest holders.
- OCR has not yet determined whether it will impose a THC limit for cannabis products sold in the USVI but will answer that question at a later date.
Although there remains some uncertainty about when cultivation and dispensary license applications will ultimately become available, there is little reason to delay application preparation. All application elements are described with particularity in the OCR’s rules and regulations, and applicants who wait until the 60-day application window opens to begin drafting in earnest may find themselves competing both against the clock and their direct competitors who have been working for weeks crafting detailed and compelling narratives – which are essential in a competitive application process of this variety. Our industry-leading cannabis license application team is up to speed on the application requirements and has an unparalleled record of success in merit-based license application rounds.
