A new law signed by Gov. Albert Bryan Jr. on Jan. 23 is reshaping how intoxicating hemp products are regulated in the territory, placing oversight squarely under the Virgin Islands Office of Cannabis Regulation.
During a recent Cannabis Board Advisory meeting on Thursday via Zoom, officials discussed implementation of Bill No. 36-0105, which regulates intoxicating hemp and artificially derived cannabinoids such as delta-8 and delta-10. Executive Director Joanne Moorehead said the law gives OCR 90 days from the date of signing to promulgate regulations and establish a licensing process for retailers.
“OCR now has 90 days from Jan. 23 to promulgate regulations and inform those interested in obtaining an intoxicating hemp retailer license what that process will look like,” Moorehead said.
In the meantime, she emphasized that the law prohibits the sale, possession, or manufacture of products containing specified artificially derived cannabinoids until regulations are in place. “As of January 23, it is prohibited to sell or manufacture those products,” she said, adding that businesses previously selling such items must secure them in private storage until rules are finalized.
Moorehead encouraged retailers and interested parties to review the act and clarified that industrial hemp remains under the jurisdiction of the Agriculture Department and is separate from intoxicating hemp regulation, now assigned to OCR.
Later in the meeting, a quorum was established, and following discussion of the new law, the board voted to approve several policy measures as the territory prepares for regulated cannabis operations.
Among them was a requirement that all cannabis products sold in dispensaries carry a Metrc Retail ID QR code. The standardized code will allow consumers to scan packaging and access testing results, harvest data, and batch information pulled directly from the Metrc tracking system.
“What this does is ensure consumers are getting accurate, real-time information directly from Metrc,” Moorehead said. “It eliminates the issue of outdated or broken links and provides transparency about the product they are purchasing.”
Board members expressed support for the requirement, noting it aligns the territory with emerging national standards and strengthens consumer protection. The motion passed unanimously.
The board also approved a revised fee structure for temporary cannabis use permits at public events. Under the new policy, a single-event permit will cost $250, while a multi-event permit allowing up to 12 events within a 12-month period will cost $1,500. Officials said the change replaces a previous $1,500 flat fee that was considered cost-prohibitive for one-time events.
The permits apply to specific dates, times, and locations and are not intended to replace adult-use lounge licenses. Cannabis sales are not permitted at these events, and promoters are responsible for ensuring compliance, including restricting access to individuals over age 21.
In addition, the board adopted standardized guidance for measuring the 250-foot buffer between cannabis activity areas and sensitive use properties such as schools, houses of worship, and other areas where children congregate. Measurements will be taken in a straight line from the closest point of cannabis activity to the closest point of the sensitive use property line. Waivers of the 250-foot requirement may only be granted within designated historic towns, including Christiansted, Frederiksted, Charlotte Amalie, and Cruz Bay.
In her OCR report, Moorehead provided updates on licensing progress across the territory. Fourteen commercial cultivation licenses have been conditionally approved, and OCR has completed status meetings with all approved cultivators. She said at least one or two operators on St. Thomas and St. Croix are expected to begin cultivation within four to six weeks.
Eight micro-cultivation licenses have also been conditionally approved, with those operators projected to begin growing within approximately 10 to 12 weeks.
Ten dispensaries have been conditionally approved across the territory — five on St. Thomas, three on St. John, and two on St. Croix. Moorehead said dispensaries are completing required build-outs and documentation needed for certificates to operate. “We have to have products for dispensaries to sell,” she said, noting that dispensary timelines depend on cultivation readiness.
Nine manufacturing license applications are currently under review, with decisions expected by the end of March. A cannabis testing laboratory has been selected through a procurement process, though OCR has not yet publicly announced the lab pending final notification to respondents.
Research and development license applications remain open, and transporter certifications and third-party vendor applications are expected to be posted soon. Responsible vendor training notifications will be issued once the required interagency paperwork is finalized.
Present at the Cannabis Board meeting were Chair Dr. Catherine Kean, Dr. Gary Jett, Chris Jones, Bernisha Liburd, and Justa Encarnacion.
The board’s next meeting is scheduled for March 12 at 2 p.m.
