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.

Originally published 19 December 2024

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