Virgin Islands Issues CBD Warning Leading to Licensed Retailer Confusion
The U.S. Virgin Islands Department of Licensing and Consumer Affairs (DLCA) and the Office of Cannabis Regulation (OCR) issued a reminder about the Hemp Retailers License rules. The DLCA approves these licenses, specifically restricting what can be sold, including some popular hemp products.
Retailers with a valid Hemp Retailer License can sell hemp-derived products, including products made from industrial hemp with no more than 0.3% THC. They are also allowed to sell products containing cannabis-derived ingredients suitable for animal and human consumption, but the consumable products cannot contain CBD, THC, hulled hemp seeds, hemp seed oil or hemp seed protein. Any product sold that is made with cannabis ingredients, including CBD or THC, can only be used as cosmetics.
However, some items are not allowed to be sold even with a valid license. They include:
- Hemp flower
- CBD or THC drink additives
- Consumable products that do not have more than 0.3% THC
These restrictions are being strictly enforced, and violations can lead to inventory seizure, fines and loss or suspension of the license. The Virgin Islands hemp industry is in a state of confusion.
The confusion is that at the time licenses were approved, the law did not allow the sale of the now-prohibited items, but the law has changed. There are three regulatory organizations involved. The DCLA, which oversees the OCR, is under the Office of the Commissioner. The OCR was formed to manage all matters related to cannabis, including issuing medical marijuana cards and setting up cannabis industry standards and regulations.
The third organization is the Hemp Board, which the Department of Agriculture administers. The Hemp Board was established to govern all hemp products but has been non-operational for a while. Because of the Hemp Board’s inaction, the DCLA is unable to change the license regulations to reflect the more permissive cannabis laws. Any business selling banned items like CBD gummies is meeting the current and more permissive law but not the licensing regulations passed years ago.
The Hemp Board plans to reactivate and restart meetings. Until it meets and changes the cannabis regulations to meet current laws and address products like CBD gummies and drink additives, the DCLA cannot change its retail licensing rules. This leaves the cannabis industry in the Virgin Islands in a confused state.
As The Virgin Islands Consortium explained,
“Until those meetings start taking place, the DLCA is hamstrung by the non-operational Hemp Board, unable to change any aspect of the hemp retail license regulations to reflect the more permissive environment envisioned by the territory’s new cannabis laws”.
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