U.S. Virgin Islands Sets Stage for Adult-Use Cannabis Market

LOS ANGELES- In a significant move for the U.S. Virgin Islands, the territory’s Cannabis Board sanctioned a comprehensive set of rules and regulations for the adult-use cannabis sector on Tuesday, marking a pivotal advancement since the legalization was legislated in January of the previous year.

This long-anticipated approval by the board lays the groundwork for operationalizing the adult-use cannabis industry, a development eagerly awaited by stakeholders and officials alike. “We have been waiting a very long time for this,” expressed Dr. Catherine Kean, the chairperson of the advisory board, highlighting the culmination of prolonged efforts to establish a regulatory framework for cannabis in the territory.

The newly approved regulations are now set to undergo a 30-day public feedback period, as part of the territory’s commitment to inclusive policymaking. This step underscores the government’s effort to refine the rules in alignment with public interests and concerns.

In parallel, authorities are nearing completion of a list identifying individuals eligible for expungement of cannabis-related criminal records, adhering to the legalization policy. This initiative is expected to impact approximately 300 individuals convicted of cannabis possession in the past two decades, signaling a significant shift in the territory’s approach to cannabis-related offenses.

The legislation permits adults aged 21 and above to possess up to two ounces of cannabis, a half-ounce of cannabis concentrates, and one ounce of cannabis-infused edibles. Furthermore, the law mandates a minimum 18% tax on dispensary sales, allocating the majority of cannabis tax revenue to the general fund. These funds are earmarked for critical areas such as behavioral health programs, youth initiatives, and addressing the housing crisis, highlighting a comprehensive approach to the socio-economic integration of cannabis legalization.

Despite the promising development, the operationalization of the cannabis market faces timelines, with Hannah Carty, Executive Director of the Virgin Islands Cannabis Board, projecting that entrepreneurs could begin the registration process by this summer. However, licenses for cultivation and manufacturing are not anticipated until the following year, underscoring the challenges in fully implementing the adult-use cannabis framework.

The U.S. Virgin Islands have previously taken steps towards cannabis reform, with medical cannabis legalized in 2019 and the decriminalization of possession up to an ounce. Yet, the journey towards a fully functional cannabis program has been fraught with delays, reflecting the complexities of transitioning towards legalized cannabis within the territory.

As the U.S. Virgin Islands moves forward with its adult-use cannabis industry, the focus now shifts to the effective implementation of these regulations and the potential economic and social benefits that a regulated cannabis market could bring to the territory.