THE UNITED STATES VIRGIN ISLANDS OFFICE OF THE GOVERNOR GOVERNMENT HOUSE Charlotte Amalie, V.I. 00802 340-774-0001 December 2, 2019 The Honorable Novelle E. Francis, Jr. President Thirty-Third Legislature of the Virgin Islands Capitol Building St. Thomas, VI 00802 Re: Call for Special Session — December 18, 2019 Dear Mr. President: Pursuant to Section 7 of the Revised Organic Act of 1954, as amended, I hereby call the Thirty Third Legislature of the United States Virgin Islands into Special Session to be held on Wednesday December 18, 2019 for the purpose of considering the attached proposed measure to amend Title 19, Virgin Islands Code, Chapter 34. In enacting Bill No. 32-0135, the Thirty-Second Legislature established a basis for moving forward with the legalization of medical cannabis in the United States Virgin Islands. However, since the enactment of Bill 32-0135, the support throughout the United States for the decriminalization of marijuana and use of marijuana beyond the medical practice has grown, precipitating a need for further amendments and refinements to the Virgin Islands’ cannabis program from the Legislature. Bringing together the elements of improving the existing legislation; providing more comprehensive regulatory controls; enabling the generation of larger tax and fee revenues; and moving with the general trends across the United States and the U.S. Congress, I am today presenting to the Thirty-Third Legislature a substantially amended and expanded Virgin Islands Cannabis Use Act for its consideration and approval. There is clearly a need to ensure that the Office of Cannabis Regulation, other Government agencies, residents, and guests have a regulatory program that can be effectively enforced. Likewise, implementing a cannabis use program without enabling “Non-prescription Use” would have produced Letter to Senate President Novelle E. Francis Jr. Call for Special Session - December18, 2019 December 2, 2019 Page| 2 a very limited revenue stream that would not have supported the program. Therefore, this revision of the Virgin Islands cannabis program not only enables the acquisition of a much larger stream of tax revenues and fees, but also establishes a direct revenue stream to benefit much needed payment into the Government Employees Retirement System deficit by payment of 75% of the tax and fee revenues to the GERS. We have incorporated a new provision for a review of all Marijuana/Cannabis possession convictions for potential expungement with the implementation of this Bill. This provision is not only consistent with the intent of this Bill but with the existing provisions for simple possession of Cannabis. As of June 25, 2019, 14 states and territories have approved adult-use cannabis. Since 1996, when California became the first state in the union to allow for medical use of marijuana 32 more states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands have enacted similar laws. In 2017, in Colorado where an adult use and medical marijuana programs exist, a total of $1.5 Billion dollars in marijuana sales were made, and the Colorado Government made nearly $250 million in revenue from taxes, licenses, and fees. As featured in the map and chart below, the general trend has been to move towards expanding cannabis programs in all states and territories and this has grown the marijuana industry exponentially in the last few years. PAecdical lawas/measures approved by year RetailfAdutt use approval years PR) cA) INV) eae) ena ow (PA ND) LAR) VFL) Adull & medizal use regulated progrant Adult wo only no medical regulated program Comprehensive medical cannabis prograin CAD ow THG progeani No public cannatus accoss program Angus 1 7049 * en fey | Vern ant anette lave tigned Jan 22 2618 Elective Ady 1 2018 Limited adukt possession ard growing alloved. no regulated precucticn cr sales. OC VT Ceaeoa z Letter to Senate President Novelle E. Francis Jr Cail for Special Session — Decemnber18, 2019 December 2, 2019 Page | 3 Furthermore, the American Association of Retired Persons (AARP) has recognized the benefits of cannabis products for ailing seniors. Additionally, pending in the U.S. Senate and House of Representatives are companion Bills that would de-list Cannabis from the Controlled Substances Schedule; thus decriminalizing and legalizing cannabis nation-wide. The recent congressional committee vote to advance the Marijuana Opportunity Reinvestment and Expungement Act of 2019 (MORE), was also a monumental day for cannabis in the U.S. Congress, and passed with the addition of bi-partisan support from some of the Republican party. Thus, even in the current political climate surrounding marijuana there exists a potential end to federal prohibition of cannabis. The Virgin Islands should be at the forefront and a part of this national trend. Therefore, I am asking the Legislature to give this proposed Bill prompt attention. At the Special Session on December 18, 2019, my Administration to present the provisions of the Bill; to outline the benefits of the expanded program; and to enable questions and public comment on the proposed Bill. Respectfully Yours, AT TOD. Albert Bryan, Jr. Governor On AU WN BILL NO. 33- THIRTY-THIRD LEGISLATURE OF THE VIRGIN ISLANDS OF THE UNITED STATES To amend Title 19, chapter 34 of the Virgin Islands Code to expand the legalization of medicinal cannabis. PROPOSED BY THE GOVERNOR WHEREAS, the use of cannabis for medicinal purposes was previously legalized by the Legislature of the Virgin Islands and signed into law by the Governor; and WHEREAS, there exists opportunity to generate tax revenues to alleviate the burdens on the Government of the Virgin Islands of the current Government Employee Retirement System deficit and the ongoing deficits in the General Fund; and WHEREAS, there exists opportunity to increase business ownership and employment opportunities for Virgin Islands residents; and WHEREAS, there exists an opportunity to generate new tax revenues to support drug education and senior citizen programs; and WHEREAS, there exists great opportunity to ensure that social injustices experienced by persons incarcerated for long sentences for simple possession of cannabis are alleviated; and WHEREAS, the Virgin Islands must ensure the closing of any loopholes which would hinder the ability of bona fide residents of the Virgin Islands to participate in the medical cannabis industry and further to actively protect the rights of Virgin Islanders to participate in a meaningful way in the medical cannabis industry; and WHEREAS, its is also appropriate to recognize certain cultural and sacramental uses of cannabis within the US Virgin Islands; NOW THEREFORE, BE IT ENACTED by the Legislature of the Virgin Islands: SECTION 1. Title 19, Virgin Islands Code chapter 34 is herby amended and the following is substituted in its entirety to read as follows: CHAPTER 34. THE VIRGIN ISLANDS CANNABIS USE ACT §774 — Short Title. This Act may be cited as “The Virgin Islands Cannabis Use Act”. ana nN ££ WN 37 §775 — Purpose. The purpose of this chapter is to establish a regulated system for the cultivation, manufacture, distribution and use of Medical, Non-Certified, and Sacramental Cannabis in a manner designed to protect public safety, improve the public health, and create economic opportunities for the U.S. Virgin Islands and its bona fide residents. It is the intent of this Act that control over the commercial cultivation, manufacture, and distribution of Cannabis as a business remain only with bona fide residents of the U.S. Virgin Islands and within the bounds set by law. Any attempts to circumvent this intent will be deemed null and void as a matter of public policy and any agreement attempting such circumvention is non-enforceable. Under this act, persons over the age of twenty-one (21) that are legally responsible for their own medical decisions are considered Qualified Patients and authorized to possess, purchase, and consume medical cannabis. As with any over-the-counter medicine, these adults are considered to be responsible for their own medical decisions and do not require a doctor’s certification to qualify as a Non-Certifiedpurchaser or user of cannabis and/or cannabis products. In the interest of the economic development and revitalization of the Virgin Islands, the Legislature of the Virgin Islands further determines that encouraging foreign and domestic investment in the Virgin Islands for the purpose of research and development will serve the interests of the people of the Virgin Islands. §776 — Definitions. As used in this chapter the following words, terms, and phrases have the following meaning: (a) “Advertising” or “Advertisement” means the act of providing consideration for the publication, dissemination, solicitation, or circulation of visual, oral, or written communication to directly induce any person to patronize a particular Cannabis Licensee or Permittee or purchase particular regulated Cannabis Items. “Advertising” does not include packaging and labeling, consumer education materials, or branding. “Advertising” proposes a commercial transaction or otherwise constitutes commercial speech. (b) “Adult use lounge” means a space, determined by the OCR pursuant to an issued permit, in which individuals over the age of 21 may use cannabis, commercial cannabis products, or commercial cannabis accessories, which the individuals have brought to the space, which may be public or private and may be owned by an individual, corporation, partnership, association, trust, government or entity, or any combination thereof. (c) “Branding” means promotion of a business's brand through publicizing a Cannabis Business by name, logo, or distinct design features of the brand and “Consumer education materials” means any informational materials that seek to educate consumers On A Of WN PR about regulated cannabis generally, including but not limited to education regarding the safe consumption of Cannabis, regulated Cannabis Concentrate, or regulated Cannabis Products, provided it is not distributed or made available to individuals under twenty-one (21) years of age. (d) “Applicant” means a Person who has submitted an application for a Medical Cannabis Patient Card, Medical Cannabis Caregiver Card, Medial Cannabis License, or Medical Cannabis Permit, renewal, change of ownership, or change of location of a Medical Cannabis License pursuant to this Act, which application has been accepted for review but has not been approved or denied by the OCR. (e) “Auto-Expungement Project” means the review of criminal records of individuals convicted of cannabis related crimes and expunging qualifying records, as determined by the Auto-Expungement Report and subsequent amendments issued by the OCR. (f) “Bona fide practitioner-patient relationship” means: (1) A practitioner and patient have a treatment or consulting relationship, during the course of which the practitioner has completed an assessment of the patient’s medical history and current medical condition, including an appropriate in-person physical examination; (2) The practitioner has consulted with the patient with respect to the patient’s debilitating medical condition; and (3) The practitioner is available to, or offers to provide follow-up care and treatment to the patient, including, but not limited to, patient examinations. (g) “Business Entity” means a legal entity incorporated pursuant to title 13 or formed under title 26 of the Virgin Islands Code, whose shareholders, officers, directors, members, partners, or owners are each residents of the U.S. Virgin Islands as required by Section 781(a) of this Act and that is not publicly traded. A Business Entity and each of the Persons who are its shareholders, officers, directors, members, partners, or owners are Owners. (h) “Cannabis” or “Medical Cannabis” means all parts of the plant of the genus cannabis whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, including cannabis concentrate. “Cannabis” or “Medical cannabis” does not include industrial hemp, nor does it include fiber produced from the stalks, oil or cake made from the seeds of the plant, sterilized seed of the plant which is incapable of germination, or the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink or other product. (i) “Cannabis Business” means a Cannabis Licensee or Micro-Cultivation Permitee. A Cannabis Business may include a Cannabis Non-Presription Use Permitee. (j) “Cannabis Business Representative” means an Owner, employee, or agent of a Cannabis Business and shall not include a Contractor or a Consultant. Annan fF WN (k) “ Cannabis Concentrate” means a specific subset of Cannabis Items that were produced by extracting cannabinoids, through a solvent or non-solvent manufacturing process, from Cannabis or Medical Cannabis or by combining extracted cannabinoids with Cannabis or Medical Cannabis or other ingredients and are intended for use by smoking or vaporizing. (1) “ Cannabis Cultivation License” or “ Cannabis Cultivation Licensee" means a Person licensed pursuant to this Code to operate a business as described in section 791 that cultivates Cannabis for sale to Medical Cannabis Licensees or Non- Certified Use Permittees. (m)“Cannabis Dispensary License” or “Cannabis Dispensary Licensee” means a Person licensed pursuant to this Code to operate a business as described in section 793 or 795 that sells Cannabis Items and Cannabis Paraphernalia to Non-Certified Use Permittees or Qualified Patients or Sacramental Use Permittees. (n) “Cannabis Infused Product” means any product that is comprised of Cannabis Concentrate or Cannabis Flower and other ingredients and is intended for use or consumption other than by smoking or vaporizing, including edible Cannabis Infused Products, topical cannabis-infused products, transdermal cannabis-infused products, and trans mucosal cannabis-infused products. An extract of Cannabis that does not include any other non-cannabis ingredients but includes activated cannabinoids intended for oral administration shall be considered an Edible Cannabis Infused Product. (0) “Cannabis Item” means raw Cannabis plant material, Cannabis Concentrate, and Cannabis Infused Product. (p) “Cannabis Manufacturing License” means a person licensed pursuant to this Code to operate a business as described in section 792 that manufactures Cannabis Items for sale to other Cannabis Licensees. (q) “Cannabis Paraphernalia” means any equipment, products, or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing Cannabis, or for ingesting, inhaling, or otherwise introducing Cannabis into the human body. (r) “Cannabis Permit”, “Cannabis Permittee”, “Medical Cannabis Permit”, “Medical Cannabis Permittee”, “Permit” or “Permittee” means a Person permitted pursuant to this Code, unless specific provision or context provides otherwise. Cannabis Permittees include Micro-Cultivation Permittees, Cannabis Non-Certified Use Permittee, Cannabis Temporary Non-Certified Use Permittee, or Onsite Consumption Permittee. On DN PWN RB (s) “Cannabis Product” means concentrated cannabis products and cannabis products that are comprised of cannabis and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures. (t) “Cannabis Non-Certified Use Permit” or “Cannabis Non-Certified Use Permitee” means a Person permitted pursuant to this Code to operate a business as described in section 795 that allows for the consumption of Cannabis. Patrons of such business shall be known as “Non-Certified Users”. (u) “Cannabis Temporary Non-Certified Use Permit” or “Cannabis Temporary Non- Certified Use Permitee”means a Person permitted pursuant to this Code to operate a business as described in section 795 that allows for the temporary consumption of Cannabis. Patrons of such business shall be known as “Non-Certified Users”. (v) “Cardholder” means a Qualifying Patient or a Designated Caregiver who has been issued and possesses a valid registry identification card. “Child-Resistant” means special packaging that is: (1) Designed or constructed to be significantly difficult for children under five (5) years of age to open and not difficult for normal adults to use properly as defined by 16 C.F.R. 1700.20 (1995); (2) Opaque so that the packaging does not allow the product to be seen without opening the packaging material; and (3) Resealable for any product intended for more than a single use or containing multiple servings. (w) “Consultant” means a Person who visits the Licensed Premises of a Cannabis Licensee or Medical Cannabis Licensee on a temporary basis to perform a service related to advising a Cannabis Licensee or Medical Cannabis Licensee on the cultivation, curing, processing, internal-testing, storing, packaging, labeling, manufacturing, transportation, transfer, purchase, and sale of Cannabis Items or Medical Cannabis Items. (x) “Container” means the sealed package in which Cannabis Items or Medical Cannabis Items are placed for sale to a Use Permittee or Qualified Patient. (y) “Contractor” means a Person other than a Cannabis Business Representative or Medical Cannabis Business Representative, who visits the Licensed Premises of the Cannabis Business on a temporary basis to perform a service, maintenance, or repair in a manner that does not qualify the Person as a Consultant. (z) “Crime of Violence” has the same meaning as defined in title 23 section 451 of the On AM WN Virgin Islands Code. (aa) “Cultivation Facility” means an entity registered with the OCR pursuant to this chapter that acquires, possesses, cultivates, delivers, transfers, transports, supplies, or sells cannabis and related supplies to Cannabis establishments. (bb) “Deliver” means the commercial transfer of Medical Cannabis Items from a Medical Cannabis Dispensary, up to an amount determined by the OCR, to a Qualified Patient. “Delivery” also includes the use of any technology platform that enables Qualified Patients to arrange for or facilitate the commercial transfer by a Medical Cannabis Dispensary of Medical Cannabis Items. All deliveries shall comply with federal laws and regulations. (cc) “Designated caregiver” means an individual identified in writing, pursuant to the provisions of Title 19, chapter 11, section 779 of the Virgin Islands Code, who: (1) is at least 21 years of age; (2) has been designated in writing by a Qualified Medical Cannabis Patient or the parent or legal guardian of a Medical Cannabis Patient, and who may possess, purchase, or administer Medical Cannabis to a Medical Cannabis Patient (2) has agreed to assist with a Qualifying Patient’s medicinal use of cannabis; (3) has not been convicted of a disqualifying felony offense; and (4) assists no more than three qualifying patients, including him or herself, with their medicinal use of cannabis, unless the designated caregiver’s qualifying patients each reside in or is admitted to a health care facility or residential care facility where the designated caregiver is employed. (dd) “Designated Consumption Area” means a designated area where Qualified Patients or Non-Certified Users are expressly permitted to consume Medical Cannabis or Cannabis Items. (ee) “Disqualifying Felony Offense” means: (1) a crime that was classified as a felony in the jurisdiction where the person was convicted; (2) a violation of a state, territorial, or federal controlled substances law, that was classified as a felony in the jurisdiction where the person was convicted, not including : (A) an offense for which the sentence was completed, including any term of probation, or supervised release; or (B) an offense that consisted of conduct for which this chapter would likely have prevented a conviction, but the conduct either occurred prior to the enactment of this chapter or was prosecuted by an authority other than the Virgin Islands. (ff) “Edible Cannabis Product” means a Cannabis Infused Product that is intended to be taken by mouth, swallowed, and is primarily absorbed through the gastrointestinal tract. Edible cannabis-infused products may be psychoactive when used as intended. Without limitation, edible cannabis-infused products may be in the form of a food, beverage, capsule, or tablet. NO f WN 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 (gg) “Female-operated bona fide Virgin Islands entity” means a bona fide Virgin Islands entity that is owned and controlled by females who are citizens of the United States and permanent residents of the Virgin Islands, in which at least 51% of the ownership interest is held by females and the management and daily business operations of which are controlled by one or more females, or, in the case of a corporation that has issued stock, of which at least 51% of the capital stock is owned by one or more females. (hh) “Financial Interest” means any right or entitlement to any portion of revenue or profit from the sales of a Cannabis Business or Medical Cannabis Business, including a Reasonable Royalty or Permitted Interest. A Financial Interest does not include an Indirect Interest. Except as otherwise provided by this Act, a Financial Interest holder shall not be permitted to exercise control over the Cannabis Business or Medical Cannabis Business. A holder of the Financial Interest may not be not a publicly traded company or consist of any other multipart corporate structure that, in the discretion of the OCR, renders it impracticable or impossible for the OCR to conduct its background investigation on all relevant parties and beneficiaries of the Applicant or that that limits or prevents full and direct transparency to underlying direct or indirect ownership, beneficial or otherwise. (ii) “Financial Interest Holder” means any Person entitled to a Financial Interest pursuant to this Act, including a Reasonable Royalty Holder and a Permitted Interest Holder. A Financial Interest Holders is not an Unaffiliated Third Party. (jj) “Flowering Canopy” means the total square feet of all Flowering Cannabis Plants on the Licensed Premises of a Cannabis Cultivation Licensee. (kk) “Flowering Medical Cannabis Plants” means Cannabis plants in a light cycle intended to stimulate production of flowers, trichromes, and cannabinoids characteristic of Cannabis. (11) “Immature Plant” means a nonflowering cannabis plant that is no taller than eight (8) inches and no wider than eight (8) inches, is produced from a cutting, clipping, or seedling, and is in a cultivating device. (mm) “Immediate family member” means a spouse, parent, or child. (nn) “Indirect Interest” means any interest in a Cannabis Business or Medical Cannabis Business License that does not rise to the level of a Financial Interest. An Indirect Interest may include but is not limited to a Person’s right to receive commercially reasonable rent payments on a fixed basis pursuant to a bona fide lease agreement, secured or unsecured loans, or security interest in fixtures or equipment with a direct nexus to the cultivation, manufacture, sale, transportation, or testing of Cannabis, a consulting fee on a fixed basis for services that are allowed under this Act, or a Person who receives a bonus as an employee if the employee is on a fixed wage or salary and the bonus is based on a written incentive/bonus program that is standard and customary oon an ft WN PR for the services rendered. Except as otherwise provided by these rules, an Indirect Interest holder shall neither exercise control of nor be positioned so as to enable the exercise of control over the Cannabis Business or Medical Cannabis Business Licensee. A holder of an Indirect Interest is not an Unaffiliated Third Party. (oo) “Interest” means any Financial Interest or Indirect Interest in a Cannabis Business or Medical Cannabis Business Licensee. A holder of an Interest is not an Unaffiliated Third Party. (pp) “Inventory Tracking System” means an electronic tracking system approved by the OCR pursuant to section 790 that all Licensees are required to utilize,that tracks Cannabis Items from either the seed or immature plant stage until the Cannabis Item is sold to a Non-certified Medical User or Qualified Patient or is destroyed. Cannabis Business Licensees and Medical Cannabis Business Licensees may utilize a third-party seed-to-sale tracking system if such system is approved by the OCR and is able to transmit required information to the “Inventory Tracking System”. (qq) “Licensee”, “License”, “Medical Cannabis Licensee”, or “Medical Cannabis License” means a Person Licensed pursuant to this Code. Medical Cannabis Licensees include Medical Cannabis Cultivation Licensees, Medical Cannabis Manufacturing Licensees, and Medical Cannabis Dispensary Licensees. (rr) “Licensed Premises” means the premises specified in an application for a License under this Code, which are owned or in possession of the Licensee and within which the Licensee is authorized to cultivate, manufacture, distribute, or sell Medical Cannabis Items in accordance with this Code. (ss) “Limited Access Area” means a building, room, or other contiguous area upon the Licensed Premises where Cannabis Items are cultivated, manufactured, stored, weighed, packaged, sold, or processed for sale under control of the Licensee. (tt) “Majority Ownership” or “Majority Owner” means a Person or group of Persons who are Owners of, or control more than fifty-one percent (51%) of the equity interest, voting rights, and profits interest in a Cannabis Business or Medical Cannabis Business on a fully diluted basis. (uu) “Manager” means any Person who is not an Owner or holder of a Financial Interest and to whom a licensed Cannabis Business has delegated discretionary authority to organize, direct, carry on, or supervise day to day operations. (vv) “Medical Cannabis Business” means a Medical Cannabis Licensee or MicroCultivation Permitee or Cannabis Business Licensee or Non-certified Cannabis Use Permitee. Operation of a Medical Cannabis Business shall be strictly operated for medical dispensary purposes under the provisions of section 793. (ww) “Medical Cannabis Business Representative” means an Owner, employee, or OMAN AM S$ WN HE agent of a Medical Cannabis Business and shall not include a Contractor or a Consultant. (xx) “Medical Cannabis Concentrate” means a specific subset of Medical Cannabis Items that were produced by extracting cannabinoids, through a solvent or non-solvent manufacturing process, from Medical Cannabis or by combining extracted cannabinoids with Medical Cannabis or other ingredients and are intended for use by smoking or vaporizing. (yy) “Medical Cannabis Cultivation License” or “Medical Cannabis Cultivation Licensee" means a Person licensed pursuant to this Code to operate a business as described in section 791 that cultivates Medical Cannabis for sale to other Medical Cannabis Licensees. (zz) “Medical Cannabis Dispensary License” or “Medical Cannabis Dispensary Licensee” means a Person licensed pursuant to this Code to operate a business as described in section 793 that sells Medical Cannabis Items and Medical Cannabis Paraphernalia to Qualified Patients. (aaa) “Medical Cannabis Certified” means a Medical Cannabis Registry Form signed by a licensed practitioner, certifying that in the practitioner’s professional opinion, the patient has a Qualifying Medical Condition. (bbb) “Medical Cannabis Registry Card” means an optional identification card provided by the OCR signifying the individual's status as a Qualified Patient. (ccc) “Medical Cannabis Registry Form” means a form created by the OCR for the purposes of a practitioner certifying an individual as a Qualified Patient. (ddd) “Medicinal Use” includes the acquisition, administration, cultivation, manufacture, delivery, harvest, possession, preparation, transfer, transportation, or use of Cannabis or paraphernalia relating to the administration of Cannabis to treat or alleviate a registered qualifying patient’s debilitating medical condition or symptoms associated with the patient’s debilitating medical condition. The term does not include: (1) the cultivation of Cannabis by a nonresident cardholder; (2) the cultivation of Cannabis by a cardholder who is not designated as being allowed to cultivate on the cardholder’s registry identification card; or (3) the extraction of resin from Cannabis by solvent extraction unless the extraction is done by a Cannabis product manufacturing facility. (eee) “Merit-Based Application Process” means the process, as described in section 781a, by which the OCR selects Medical Cannabis Licensees. (fff) “Micro-Cultivation Permit’ or “Micro-Cultivation Permittee” means an individual, or group of individuals, authorized pursuant to this Code to operate a business at a specific location as described in section 783d that allows for the small- on aA ON ff WN Ne) scale cultivation of Cannabis for commercial sale to a Cannabis Licensee. (ggg) “Micro-Cultivation Site” means the specific location within an address, as designated by a Micro-Cultivation Permittee, where the small-scale cultivation of Cannabis for commercial sale to a Cannabis Licensee is permitted to occur. (hhh) “Minority Ownership” or “Minority Owner” means a Person who is an Owner of, or controls less than fifty percent (50%) of a Cannabis Business or Medical Cannabis Business on a fully diluted basis. (ili) “Minority Protections” means control exerted over a Cannabis Business which does not extend to direct or indirect control over day-to-day operations, but may include a veto right over the actions listed below. Notwithstanding anything herein, nothing in this section is intended to modify the rights of any shareholder under title 13 of the Virgin Islands Code. In the event of a conflict between this Act and the Virgin Islands Code, the Virgin Islands Code shall control: (1) Amendment of the organizing documents of the Cannabis Business; (2) Decision to sell all or substantially all of the assets, or a decision to change the Majority Owner; (3) Any issuance of additional equity in the Cannabis Business; (4) Any material change in the line of business of the Cannabis Business; (5) Any material incurrence of debt; and (6) Any other material decision substantially similar to those enumerated above. (jjj)“Modification of Premises” means the substantial change in the use or structure of a Cannabis License’s Licensed Premises as described in section 781 (e). (kkk) “Non-certified Medical Use” includes all use of Cannabis Items or paraphernalia by Qualified Patient or for Sacramental Use in such restricted or designated areas and facilities provided by law or by the OCR; and shall not include cultivation or extraction of Cannabis or Cannabis products. (Ill)“Non-certified Use Permit” means a Non-certified Cannabis Use Permit, Medical Cannabis Temporary Non-certified Use Permit, or an Onsite Consumption Permit. Individuals issued such permits shall be designated “Non-certified Users”. (mmm)“Nonresident Medical Cannabis Card” means valid documentation that: 10 AN AN AWN (2) Exempts the individual from criminal prosecution for the purchase, possession, and use of Medical Cannabis under the laws of the issuing state or jurisdiction; (3) The issuance of which is conditioned upon a practitioner advising the individual that the medical use of cannabis may mitigate symptoms or effects of the Person’s medical condition; and (4) Has an expiration date or requires periodic re-evaluations and that the document either has not yet expired or the period of required re-evaluation has not passed; (5) Has been diagnosed with a debilitating medical condition, or is the parent, guardian, conservator, or other person with authority to consent to the medicinal treatment of a person who has been diagnosed with a debilitating medical condition; (6) Is not a resident of the Virgin Islands or who has been a resident of the Virgin Islands for less than 45 days; (7) Was issued a currently valid registry identification card or its equivalent by another state, district, territory, commonwealth, insular possession of the United States, or country recognized by the United States that allows the person to use cannabis for medicinal purposes in the jurisdiction of issuance; and (8) Has submitted any documentation required by the OCR and has received confirmation of registration; or (9) Is otherwise a Qualified Patient as defined in this chapter. (nnn) “Nonresident in-patient cardholder” means a person who: (1) has been diagnosed with a debilitating medical condition, or is the parent, guardian, conservator, or other person with authority to consent to the medicinal treatment of a person who has been diagnosed with a debilitating medical condition; (2) is not a resident of the Virgin Islands or who has been a resident of the Virgin Islands for less than 45 days; (3) is attending or participating in medicinal cannabis treatment in the Virgin Islands under the supervision of a practitioner in the Virgin Islands, and has been issued a temporary non-resident valid registry identification card by the Virgin Islands for the duration of the non-resident in-patient’s treatment, and which may be extended by the OCR for good cause shown; and (4) has submitted any documentation required by the OCR and has received confirmation of registration as an in-patient. (000) “Office of Cannabis Regulation (““OCR”)” means the government agency charged with implementing this chapter and administering its provisions and regulations. (ppp) “Onsite Consumption Permit” means a permit issued a Medical Cannabis Cultivation Licensee to authorize limited onsite consumption at its Licensed Premises. (qqq) “Owner” means a natural Person or Business Entity that owns any share of stock or membership interest in a Medical Cannabis License, including but not limited to, the officers, directors, members, or partners of the Cannabis Licensee, and any Person in receipt of or has the right to receive any share of the revenues or profits derived from 1] Onan bt WNP the Cannabis Business or Medical Cannabis Business that is not a Financial Interest approved by the OCR. “Owner” shall include any and all types of legal entities, individually or as a group, that may be formed as comingled or derivative ownership structures for the purpose of being an Owner or participating, in any manner, in the rights and/or privileges typically reserved for Owners. “Owner” for purposes of this statute does not include an owner who holds the License or shares or other interest in any entity, for which he or she is not the actual beneficial owner. (rr) “Permitted Interest” means a right to obtain an ownership interest, right to control, or share of profits or revenues in a Cannabis License or Medical Cannabis License pursuant to a Permitted Interest Agreement where the holder of such Permitted Interest is a natural Person who is a lawful U.S. citizen whose right to ownership in the Cannabis License is contingent on the Permitted Interest Holder’s qualification, approval by the OCR, and licensure as an Owner. A “Permitted Interest” is a Financial Interest. (sss) “Permitted Interest Agreement” means the agreement between the Permitted Interest Holder and Cannabis Licensee setting forth the terms and conditions upon which the Permitted Interest Holder has a right to obtain ownership interest, right to control, or share of profits or revenues in a Cannabis License. A Permitted Interest Agreement may be in the form of a convertible debt option, option agreement, warrant or any other agreement as defined by rule of the OCR. (ttt) “Permitted Interest Holder” means the holder of a Permitted Interest. A “Permitted Interest Holder” is a Financial Interest Holder and must be a natural Person who is a lawful U.S. citizen. (uuu) “Person” means a natural Person, partnership, association, company, corporation, limited liability company, organization, trust or similar entity, estate, joint venture, or a manager, agent, owner, director, servant, officer, or employee thereof; except that “Person” does not include any governmental organization. (vvv) “Pesticide” means (a) a substance or mixture of substances intended for preventing, destroying, repelling, or mitigating any pest, or (b) any substance or mixture of substances intended for use as a plant regulator, defoliant, or desiccant. For the purposes of this chapter, the definition includes herbicides regulated under FIFRA. (www) “Practitioner” means a person who is licensed and in good standing in the Virgin Islands as a medical doctor, osteopath, naturopath, homeopath, chiropractor, practitioner’s assistant who maintains, in good standing, a license to practice medicine issued by the U.S. Virgin Islands or with respect to any non-resident medical cannabis card, any practitioner or other person qualified under the laws of the jurisdiction of residence of any non-resident to prescribe medical cannabis. 12 On anf WN eK 42 (xxx) “Qualifying Medical Condition” means: (1) Cancer; (2) Glaucoma; (3) Positive status for Human Immunodeficiency Virus (HIV); (4) Acquired Immune Deficiency Syndrome (AIDS); (5) Hepatitis C; (6) Amyotrophic Lateral Sclerosis (ALS); (7) Crohn’s Disease; (8) Parkinson's Disease; (9) Post-Traumatic Stress Disorder; (10) Multiple Sclerosis; (11) Chronic pain; (12) Severe nausea; (13) Autism; (14) Any condition for which a practitioner would prescribe an opiate for pain; or (15) Any other conditions as certified in writing by a practitioner that, in the professional opinion of the practitioner, the potential benefits of the medical use of cannabis would likely outweigh the health risks for the Qualifying Patient. (yyy) “Qualified Patient” or “Patient” means (a) an individual twenty-one (21) years of age or older with legal responsibility for their own medical decisions or (b) an individual less than twenty-one (21) years of age or who otherwise is not legally responsible for their own medical decisions, with a valid, signed Medical Cannabis Certification Form or Nonresident Medical Cannabis Card and consent of their legal parent or guardian. (aaaa) “Reasonable Royalty” means a right to a royalty payment for the use of licensed intellectual property in the form of technology, brands, trade secrets, trademarks, copyrights, or other intellectual property approved by the OCR related to the production, sale, or distribution of Cannabis or Cannabis Items based on the value of gross revenue generated from the manufacturing or processing of Cannabis or Cannabis Product. While no specific percentage of such revenue can be deemed reasonable for purposes of this section, whether a rate is reasonable is subject to the discretion of the OCR pursuant to factors set forth by the OCR in accordance with Georgia-Pacific Corp. v. United States Plywood Corp., 318 F. Supp. 1116, 1119-20 (S.D.N.Y. 1970), or its progeny and in no event shall the OCR approve an agreement for a Reasonable Royalty where such agreements transfers more than thirty percent (30%) of the gross wholesale revenue of the Cannabis Business derived from the use of the licensed intellectual property to the Reasonable Royalty Holder. (bbbb) “Reasonable Royalty Holder” means any Person who receives a Reasonable Royalty in exchange for a Licensee’s use of the Reasonable Royalty Holder’s intellectual property. A Reasonable Royalty Holder shall not exercise control over the Cannabis Business unless such holder is also an Owner. Notwithstanding anything herein to the contrary, provisions in licensing agreements whereby the Reasonable Royalty Holder 13 WON AN DPWN imposes reasonable requirements to protect its intellectual property, standard and customary in such agreements, shall not be considered evidence of control over a Medical Cannabis Business. Such provisions include but are not limited to quality controls and regulations governing marketing and advertising. A Reasonable Royalty Holder is a Financial Interest Holder. (cccc) “Registry Identification Card” means a document issued by the OCR that identifies a person as a registered qualifying patient or registered designated caregiver, or documentation that is deemed a registry identification card pursuant to section 784. (dddd) “Resealable” means that the package continues to function within effectiveness specifications, which shall be established by the OCR similar to the federal “Poison Prevention Packaging Act of 1970”, 15 U.S.C. sec. 1471 et seq., for the number of openings and closings customary for its size and contents. (eeee) “Resident” means any natural Person who has resided in the Territory for ten (10) of the last fifteen (15) years prior to applying for any license or permit, OR who qualifies under Title 29 VI Code Section 1003(9)(c); and who remains a bona fide resident of the Territory and who is subject to personal income tax in the Territory for the entire period such person holds title to a license or permit. (ffff} | “Resident-Owned Business” means a business enterprise owned by an individual who is, or a majority number of individuals who meet the definition of Resident. (gggg) “Restricted Access Area” means a designated and secure area within a Licensed Premises where cannabis and retail cannabis products are sold, possessed for sale, and isplayed for sale, and where no one under the age of twenty-one (21) is permitted. (hhhh) “Sacramental Usage” means use lawful use and means of production, transport, and location of use by persons over the age of twenty-one (21) of an organized religion of faith in the sincere exercise of their religion as may be prescribed by the OCR. (itil) “Sale” or “Sell” includes to exchange, barter, or traffic in, to solicit or receive, and order except through a Licensee licensed under this article, to deliver for value in any way other than gratuitously, to peddle or possess with intent to sell, or to traffic in for any consideration. (jj3}) “Sales Tax” means a tax levied on a Cannabis Cultivation Licensee or Medical Cannabis Cultivation Licensee per gram of Cannabis or Medical Cannabis that is cultivated on their Licensed Premises and transferred to another Licensee. (kkkk) “School” means a public or private preschool or a public or private elementary, middle, junior high, or high school. (1111) “Service-disabled veteran” means a veteran who is a citizen of the United States and permanent resident of the Virgin Islands with a service-connected disability as 14 Sn A WM fb WN PR 36 determined by the United States Department of Veterans Affairs or who has been terminated from military service by reason of disability by the United States Department of Defense. (mmmm) “Service-disabled veteran-operated bona fide Virgin Islands entity” means a bona fide Virgin Islands entity that is owned and controlled by service-disabled veterans in which at least 51% of the ownership interest is held by service-disabled veterans and the management and daily business operations of which are controlled by one or more service- disabled veterans, or, in the case of a corporation that has issued stock, of which at least 51% of the capital stock is owned by one or more service-disabled veteran, on a fully diluted basis. (nnnn) “Shipping Container” means any container or wrapping used solely for the transport of Medical Cannabis Items in bulk to other Medical Cannabis Licensees. (0000) “Smoking” means the burning of a lighted cigarette, cigar, pipe, or any other matter or substance that contains cannabis. Smoking does not include vaporization, sublimation, or any other chemical. (pppp) “Transportation Manifest” means a document created by the Inventory Tracking System that enables a Cannabis Licensee to transport Cannabis Items and designates the time, quantity of Cannabis Items, and receiving Cannabis Items. (qqqq) “Unaffiliated Third Party” means, in the case of a Cannabis Dispensary or Cannabis Production Licensee, a Person who has no ownership or financial interest, direct or indirect, in that Cannabis Dispensary or Cannabis Production Licensee and, in the case of a Medical Cannabis Dispensary, a Person who has no ownership or financial interest, direct or indirect, in that Medical Cannabis Dispensary. A Financial Interest Holder or a person who holds an Indirect Interest is not an Unaffiliated Third Party. (rrr) “Unreasonably Impracticable” means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset that the operation of a cannabis establishment is not worthy of being carried out in practice by a reasonably prudent business person. (ssss} “Written Certification” means a document dated and signed by a Practitioner, stating that in the Practitioner’s professional opinion the patient is likely to receive therapeutic or palliative benefit from the medicinal use of Cannabis to treat or alleviate the patient’s debilitating medical condition or symptoms associated with the debilitating medical condition. A written certification must affirm that it is made in the course of a bona fide practitioner-patient relationship and must specify the Qualifying Patient’s Qualifying Medical Condition. §777 — Office of Cannabis Regulation. (a) There is hereby created, the Office of Cannabis Regulation (“OCR”), as part of the 15 On AM PWN Department of Licensing and Consumer Affairs, with the executive authority to implement this chapter and administer the provisions including, but not limited to, rulemaking authority. The OCR shall exercise its powers and perform its respective duties and functions as specified in this Code and shall have full and exclusive authority to: (1) Promulgate rules and regulations related to Medical Cannabis, Non-presription Medical Cannabis, and Sacramental Cannabis cultivation, manufacture, sale, dispensary, testing, licensing, and use, and the necessary and efficient administration of its duties as set forth in this chapter within one-hundred- eighty (180) days of enactment of this Chapter; and may amend such regulations from time to time; but, no regulation adopted by the OCR shall make it Unreasonably Impracticable to operate a Medical Cannabis License or Medical Cannabis Permit; (2) Establish reasonable production limits governing the cultivation of Medical Cannabis, Non-Certified Medical Cannabis and Sacramental Cannabis in the interest of preventing an oversaturation of each such market; (3) Establish provisions permitting Qualified Patients to be dispensed Medical Cannabis of a higher grade than Non-certified Use Cannabis; (4) May establish defined geographical zones within which Cannabis cultivation, manufacturing, production, dispensing, consumption, and related business activities may occur as a means of facilitating control and enforcement; (5) Grant or refuse Licenses for the commercial cultivation, manufacture, distribution, and sale of Medical Cannabis, Non-Certified Cannabis, and Sacramental Cannabis Items as provided by law; (6) Establishing the form and content of registration and renewal applications submitted under this chapter and to establish license fees; (7) Grant or refuse Permits for the commercial micro-cultivation of Medical Cannabis and Non-Certified Use of Medical Cannabis as provided by law; (8) Establishing a system to evaluate competing medicinal cannabis establishment applicants that includes an analysis of: i. in the case of dispensaries, the suitability of the proposed medicinal location and its accessibility for patients; ii, the character, veracity, background, qualifications, and relevant experience of principal officers and board members of an applicant; ili. the economic benefits that will inure to the residents of the Virgin Islands by local ownership, jobs and other opportunities; and iv. the business plan proposed by the applicant, which, in the case of cultivation facilities and dispensaries, must include the ability to 16 On aunt WN PR maintain an adequate supply of cannabis, plans to ensure safety and security of patrons and the community, procedures to be used to prevent diversion, and any plan for making cannabis available to low-income registered Qualifying Patients; inclusion of interests for Minority-owned Business Enterprises, Female-operated bona fide Virgin Islands entities, and Service- disabled veteran-operated bona fide Virgin Islands entities. (9) Establish procedures governing Cannabis Businesses with the goals of ensuring the health and safety of qualifying patients, non-certified users, and sacramental use organizations and preventing diversion and theft without imposing an undue burden or compromising the confidentiality of cardholders, including: i. il. ili. iv. Vv. Vi. Vil. Viii. ix. Xi. Xii. oversight requirements; recordkeeping requirements; security requirements, including lighting, physical security, and alarm requirements; health and safety regulations, including restrictions on the use of pesticides that are injurious to human health; standards for the manufacture of cannabis products and both the indoor and outdoor cultivation of cannabis by cultivation facilities; requirements for the transportation and storage of cannabis by Cannabis Businesses; including requirements that transportation manifests be kept for all transportation of medicinal cannabis; requirements for banking and transportation of cash deposits; employment and training requirements, including requiring that each medicinal cannabis establishment create an identification badge for each agent; standards for the safe manufacture of cannabis products, including extracts and concentrates; restrictions on the advertising, signage, and display of medicinal cannabis dispensaries and non-certified centers, but the restrictions may not prevent appropriate signs on the property of a dispensary or non-certified center, listings in business directories, including phone books, listings in cannabis-related or medical publications, or the sponsorship of health or not-for-profit charity or advocacy events; requirements and procedures for safe, accurate and appropriately childproofed packaging and labeling of medicinal cannabis products; and certification standards for testing facilities, including requirements for independence from Cannabis Businesses whose products are tested by such testing facilities and equipment and qualifications for personnel; (10) Establish licensing goals for service-disabled veterans and females, and service-disabled veteran-operated bona fide Virgin Island entities and female- operated bona fide Virgin Islands entities. 17 OAnN Aa fwWDN PP 37 38 39 40 41 42 (11) Establishing labeling requirements for Cannabis and Cannabis Products, including requiring that edible cannabis products be clearly identifiable, when practicable, with a standard symbol indicating that it contains cannabis, and requiring that Cannabis Products’ labels include the following, where applicable: i. the estimated length of time it typically takes for the product to take effect; ii. | warnings to limit additional consumption while waiting for edible cannabis to enter the blood stream and be fully absorbed; iii. disclosure of ingredients and possible allergens; iv. a nutritional or supplement fact panel; v. date of expiration; and vi. name and address of manufacturer. (12) Suspend, fine, restrict, or revoke such Licenses or Permits upon a violation of this article or any rule promulgated pursuant to this article; (13) Impose any penalty authorized by this article or any rule promulgated pursuant to this article; and (14) Establish an Advisory Board representative of the community, licensees, law enforcement, and retirees. (b) The OCR shall be governed by an eleven (11) member board known as the Virgin Islands Cannabis Licensing Board (“the Board’’), appointed by the Governor with advice and consent of the Legislature. (1) The Board must be comprised of: one representative of the Department of Health; one representative of the Department of Agriculture; one representative of the Department of Licensing and Consumer Affairs; one farmer recommended by the Commissioner of Agriculture; two healthcare practitioners knowledgeable in cannabis medicine recommended by the Board of Medical Examiners; one disability advocate; one representative from the University of the Virgin Islands Cooperative Extension Service; one economist or person in expertise in finance; one representative appointed from the resident retirement community; and the Director of the OCR who serves as an ex officio voting member. (2) The Board shall meet at least six times per year for the purpose of providing oversight and establishing policies to be carried out by the OCR. (3) Members of the Board who are employed by the Government are not entitled to a per diem for their service on the Board, but non-governmental members are entitled to a $75 per day per diem or a proportionate amount of $75 for hours worked, if less than an eight-hour day. 18 NAW WwW d wo oe 10 11 12 13 14 15 16 17 18 19 20 21 ae 23 24 25 26 27 28 29 30 31 3Z ao 34 35 36 37 (4) The Board shall establish a program of regular collaboration with the Industrial Hemp Commission established under Title 7 Virgin Islands Code Chapter 13, Subchapter III, Section 207 for discussion on areas of related regulation. (c) Notwithstanding anything provided herein to the contrary, the Board shall! further establish: (1) rules authorizing and permitting a Virgin Islands sponsored non-resident medical cannabis tourism program; (2) a Virgin Islands cannabis testing lab in each of the two major districts—St. Croix and St. Thomas/St. John—initially operated by private entities awarded annual contracts using the Government of the Virgin Islands’ Request for Proposal process, with the Board retaining the authority to establish and direct construction of its own cannabis testing facilities at a later date; (3) educational and certification requirements for medical cannabis establishment applicants and licensees, their agents and employees; medical practitioners; and medical cannabis related businesses including, vendors, transporters, security companies, etc.; (4) an approved list of medical and non-certified cannabis establishment vendors and qualified sacramental cannabis organizations; (5) such other and further programs that provide a benefit to patients, non-certified users and promote the economic welfare of the Virgin Islands, including drug education and drug rehabilitation programs and centers, without exceeding the authority granted in this chapter; and (6) regulations to ensure that all cannabis establishments are located in and advertised in areas that do not negatively impact enterprises and entities that rely primarily on family and youth participation, such as schools and houses of worship. Regulations must address street-level and media-based adverting and marketing guidelines to ensure that cannabis advertising and marketing do not negatively impact family-based enterprises and civic organizations. Regulation must also provide that each cannabis establishment has comprehensive security and camera monitoring systems in place at all times. (d) All rules and regulations promulgated by the Board must be published on a Virgin Islands official website. The Board shall provide not less than 30 days for public comment. Not later than 30 days after the period for public comment, the Board shall publish the final rules and proceed with implementation of the program in accordance with the rules. (e) The Director of the Office of Cannabis Regulation shall be appointed by the Board 19 f& WN oon nw 10 11 12 13 14 15 16 17 18 19 20 21 Ze 23 24 25 26 27 28 29 30 31 32 ao 34 35 36 37 38 39 40 for a three-year term, which may be extended. The Director of the OCR has the responsibility to ensure: (1) the ability of qualifying patients in all areas of the Territory to obtain timely access to high-quality medicinal medical cannabis; (2) the effectiveness of the dispensaries and cultivation facilities, individually and together, in serving the needs of Qualifying Patients, Non-certified Users, and Sacramental Uses, including the provision of educational and support services by dispensaries, the reasonableness of their prices, whether they are generating any complaints or security problems, and the sufficiency of the number operating to serve the Territory’s registered qualifying patients; (3) the effectiveness of the cannabis testing facilities; (4) the sufficiency of the regulatory and security safeguards contained in this chapter and adopted by the OCR, to ensure that access to and use of cannabis cultivated are provided only to cardholders; (5) the proposal of additions or revisions to the OCR regulations or this chapter, relating to security, safe handling, labeling and nomenclature are considered; and (6) that research studies regarding health effects of medicinal medical cannabis for patients are encouraged and conducted. (f) The Director shall hire additional staff as may be required to implement the program, including consultants, but the program must become self-sufficient from the taxes or fees generated through the program not more than two years after the commencement of the program. (g) The Director shall submit an annual report to the Commissioner of Department of Licensing and Consumer Affairs (DCLA); the Legislature of the Virgin Islands, Committee on Health; and the Board. The annual report must comprehensively outline compiled data on the program, accomplishments, challenges and recommended regulation changes, including: (1) The number of applications for each type of License or Permit processed by the OCR in the prior calendar year, the time between submission of a complete application, the number of Licenses and Permits approved or denied by type, and the total number of active Licenses and Permits by type that were valid on a monthly basis for the prior calendar year; (2) An overview of the Medical Cannabis market, including but not limited to actual cultivation and sales volumes for the prior year and anticipated demand and production levels; (3) The amount of revenue generated by Medical Cannabis, including but not 20 ODMDNA MN SF WN limited to sales taxes, application and License fees, and any other fees paid to the OCR, as well as expenses incurred by the OCR; and (4) Enforcement measures taken against Persons that possess a Permit or License issued pursuant to this Code, in which fines, suspensions, or revocations were imposed. (h) The OCR shall create and issue an Auto-Expungement Report. (1) The OCR shall create an Auto-Expungement Working Group that includes, but shall not be limited to, participants from relevant territorial agencies necessary to expunge cannabis related crimes. (2) Based upon recommendations from the Auto-Expungement Working Group, the OCR shall issue an Auto-Expungement Report no later than ten (10) months from the date of enactment of this Chapter that details: i. Classifications of crimes that should be expunged for persons convicted of reasons solely related to possession, control, or sale of under one (1) pound of cannabis, classification of crimes that may be expunged; and the classification of crimes that cannot be expunged under any circumstances; ii. Administrative processes necessary for the the Territory to expunge the identified cannabis related crimes; and iii. Funding necessary to implement the recommendations of this report. (3) All relevant territorial agencies shall follow the directed recommendations of the Auto-Expungement Report. (4) Upon issuance of the Annual Expungement Report to the Governor, Legislature, and Supreme Court, the Superior Court shall issue an order expunging each convition for a cannabis use or possession offence entered by the court prio to the date of the Auto Expungement Report for such persons deemed to be elligble for Auto Expungment. (5) Each year following the issuance of the Auto-Expungement Report, the OCR shall issue a report detailing any amendments necessary to its initial recommendations and the progress towards expunging cannabis related crimes until all of the recommendations in the Auto-Expungement Report have been fully addressed. (i) All inspectors and regulatory enforcement officials of the OCR may be considered peace officers and enforcement officers of the USVI Department of Health pursuant to 5 V.I.C. § 3561. (j) The OCR shall promulgate regulations and adopt policies designed to maintain the confidentiality of individually identifiable patient information and records, as well as any 21 AN awh WN NNN NNN DN HK RP RPP RPP RP rR eR AWM EPWNHPRP OU ON AN HWNHeR © OO 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 confidential or proprietary business’ information and records. These records shall also be exempt from the Virgin Islands public records law in title 3 chapter 33 of this Code. The records and information that the OCR obtains, shall remain confidential, but are not limited to information about a business’ operations, sales, financial records, tax returns, credit reports, cultivation information, testing regulations, security information and plans, or any revealing patient information. Any employee of the OCR or the Board, or any entity contracting with or working for the OCR or the Board, directly or indirectly, who discloses any records or information that the OCR or the Board obtains shall be subject to criminal prosecution punishable by a minimum of one (1) year of imprisonment. (k} The OCR may conduct or have conducted on its behalf, a market demand study in order to manage production by Permittees and Licensees or prior to the issuance of new Licenses authorized by this chapter. (1) OCR is responsible for establishing and overseeing an OCR Enforcement Division, which will be tasked with enforcement of all civil, criminal and regulatory violations related to Cannabis. This Enforcement Division will also be responsible for defining and assisting in the clarification of lawful cultivation, manufacture, sale and use of hemp. (m)All private entities awarded contracts to serve as a neutral-testing lab shall hire a majority of its entire workforce, full-time and part-time, as bona fide Virgin Islands residents and may not have, among its ownership interests or workforce, any conflicting ownership interest of any form with a Cannabis Business establishment in the Territory that will be the subject of such testing services. (n) Nothing in this chapter shall prevent a dispensary from providing appropriate space within the dispensary facility where patients may consume medical or non-certified cannabis or medicinal cannabis products, provided that it complies with the rules adopted by the Board in reference to that consumption. §778 - Licenses and Permits (a) The OCR is hereby authorized to issue the following Permit and License types, which shall entitle the holder of such Permit or License to all the privileges and impose all the restrictions on the holder of such Permit or License as set forth in ththis Chapter and any regulations adopted thereto: (1) Cannabis Cultivation License; (2) Cannabis Manufacturing License; (3) Cannabis Dispensary License; (4) Micro-Cultivation Permit; (5) Medical Cannibis Use Permit-Resident; P74 OnN AO PWN hr bP Ptr h PWwWWW WWW www WN Dh NM HN DN DH DH LKB DN RH PP PPP RPP PP Aun bP WNP OU DMN AUOFP WNP TWO MAI AN SFPWNrP TU MN AN FWNP CO (6) Medical Cannibis Use Permit- Non-Resident; (7) Cannabis Non-certified Use Permit; (8) Cannabis Temporary Non-certified Use Permit; and (9) Onsite Cannabis Consumption Permit for Medical and Non-certified Cannabis License; (10) Research and Development License; (b) All Licenses and Permits shall be issued to a specific Person at a defined location, except that this provision shall not prevent a Person from applying for more than one License or Permit type identified in (a)(1) — (4) of this section intended to be operated at the same defined location provided that co-location of the License or Permit facilities would not result in a violation of this Act. The Person and location associated with a Permit or License may only be changed under the limited circumstances authorized by this Chapter and shall require approval from the OCR. (c) All Licenses and Permits shall be valid for one (1) year unless a shorter term is requested by the Applicant, except that a Cannabis Temporary Non-certified Use Permit may be valid for no longer than fourteen (14) days. (d) The OCR shall determine if there is a necessity and the number of Micro-Cultivation Permits, Cannabis Non-certified Use Permits, Cannabis Temporary Non-certified Use Permits, or Onsite Cannabis Consumption Permits that may be issued by the OCR based statistical analysis and market surveys. (e) The fees charged to Qualifying Patients, nonresident cardholders, and Designated Caregivers shall be determined by the Board. (f) Renewal fees are charged annually in an amount equal to the application fees or as otherwise determined by Board’s regulations. All license fees may be adjusted annually in the discretion of the Board. (g) If the OCR revokes a License, a Licensee elects to surrender a License, or the OCR issues new or additional licenses, the OCR shall conduct a Merit-Based Application Process to select to whom a new Medical Cannabis License of the same type should be issued. If the License is a Medical Cannabis Cultivation License, preference shall be given to Micro- Cultivation Permittees. (h) A license authorized by this chapter and issued by the OCR may not be held by, or issued to, directly or indirectly, any person or any immediate family member of any person who, at any time within the previous twelve (12) months, held office in, or was employed by any agency of the Government of the Virgin Islands, or any of its political subdivisions, or who 23 On AM ff WN was a member of the OCR or the CAB, when the duties of such person concerned or otherwise related to the enforcement or regulation of this chapter, or any other penal provisions of law of the Virgin Islands prohibiting or regulating the sale, use, possession, transportation, distribution, testing, manufacturing, or cultivation of cannabis. No person shall be precluded from owning stock in a publicly traded corporation on the basis of this provision alone. §779 — Medical Cannabis Patients (a) A Qualified Patient shall be entitled to all the protections and rights set forth in this title. (b) Possession and cultivation limits for Qualified Patients. (1) While within a private residence, a Qualified Patient may possess, use, display, consume, and process up to: i. Four (4) ounces of Medical Cannabis; ii, | One (1) ounce of Medical Cannabis Concentrate for inhalation; and iii. | One (1) ounce of THC contained in Medical Cannabis Infused Products. (2) While outside a private residence, a Qualified Patient may possess, display, purchase from a licensed Medical Cannabis Dispensary, consume, process, and transport up to: i. Four (4) ounces of Medical Cannabis; iii Ten (10) grams of Medical Cannabis Concentrate for inhalation; and iii. | Twenty (20) grams of THC contained in Medical Cannabis Infused Products. (c) A Qualified Patient who is also a U.S. Virgin Islands resident may possess, use, grow, process, or transport no more than six (6) Flowering Medical Cannabis Plants for personal medical-use, provided that the Flowering Medical Cannabis Plants are cultivated on private property with the express consent of the landowner and the Medical Cannabis produced from these plants is not sold, nor made available for sale. Notwithstanding the possession limits set forth in paragraphs (a) and (b) above, a Qualified Patient may possess all of the Medical Cannabis produced by Medical Cannabis Plants cultivated at that address. (1) Notwithstanding the above, there may be no more than twelve (12) Flowering Medical Cannabis Plants for personal medical-use cultivated at any time at a single address unless a Micro-Cultivation Permit has been issued to that address. (2) Flowering Medical Cannabis Plants cultivated pursuant to a Micro-Cultivation Permit 24 On AN & WN shall not be considered ‘for personal-use”, provided the plants and all Medical Cannabis produced from those plants is clearly segregated and not comingled with Flowering Medical Cannabis Plants and Medical Cannabis for personal medical-use. (d) Nothing in the Code shall protect, nor be interpreted to protect, a Qualified Patient from prosecution for: (1) Operating a motor vehicle or vessel on the road or waters of the U.S. Virgin Islands while impaired by Medical Cannabis. Impairment from the use of Medical Cannabis by a Qualified Patient shall not be determined solely by the presence of cannabinoids in the individual’s blood or urine and the courts shall instead consider other relevant evidence; (2) Transfer of Medical Cannabis to a Qualified Patient or nonpatient for remuneration unless transferor possesses a current and valid License or Permit and the transfer is conducted in accordance with this Chapter; (3) Knowingly consuming Medical Cannabis Items in a public place that does not possess a valid Non-certified Use Permit; or (4) Display or transfer of Medical Cannabis to a Qualified Patient or nonpatient for no remuneration within one thousand (1,000) feet of a cruise ship dock in Charlotte Amalie (Havensight) or Crown Bay in St. Thomas and within five hundred (500) feet of primary cruise ship dock in Frederiksted or within five hundred (500) feet of a cruise ship tender pier in Cruz Bay. (e) A Qualified Patient may designate a Designated Caregiver, who may acquire, possess, or administer Medical Cannabis upon the Qualified Patient’s behalf. A Designated Caregiver for a Qualified Patient under twenty-one (21) years of age or not legally responsible for his or her own medical decisions must be designated by that patient’s parent or legal guardian. §780 — Medical Cannabis Certification Forms, Medical Cannabis Registry, Medical Cannabis Patient Cards (a) The OCR shall create and publish a Medical Cannabis Registry Form for Physicians to certify that an individual has a Qualifying Medical Condition and would benefit from access to Medical Cannabis. The USVI Department of Health shall provide advice and guidance on the creation of the form. (b) The OCR shall create and publish a specific Medical Cannabis Registry Form for Qualified Patients under twenty-one (21) years of age or not in control of their own medical decisions, which shall require the Qualified Patient’s parent or legal guardian’s name and signature. (c) The OCR shall notify the USVI Department of Health if it has reason to suspect that a Physician is providing individuals with a Medical Cannabis Certification Form in a 25 WOON AON PWN (d) (e) (f) (g) (h) (i) fraudulent manner or in violation of this Code. Evidence of a Physician’s attestation and signature on Medical Cannabis Registry Forms, certifying an individual as a Qualified Patient, shall be sufficient to provide the individual with all protections entitled to a Qualified Patient. A Physician shall only recommend the use of Medical Cannabis and provide an individual with a Medical Cannabis Certification Form after the performance of an in-person examination and determination that the individual has a Qualifying Medical Condition and would benefit from the medicinal use of cannabis. A Physician that has an interest in or obtains any financial benefit from a Medical Cannabis Licensee may not provide an individual a Medical Cannabis Certification Form, nor may that Physician’s Medical Cannabis Certification be used as the basis for providing an individual with a Medical Cannabis Certifiaction Form. Prior to completing a Medical Cannabis Certification Form for Qualified Patient’s under twenty-one (21) years of age or not legally responsible for their own medical decisions, a Physician must obtain the signature of the Qualified Patient’s parent or legal guardian. A Physician shall include an expiration date on all Medical Cannabis Certification Forms that shall not be longer than two (2) years from the date of issuance for residents of the USVI and not longer than six (6) months from the date of issuance for non-residents. The OCR shall create a Medical Cannabis Patient Registry and issue Medical Cannabis Patient Cards to Qualified Patients that submit a valid application and shall also maintain a Registry for Non-certified Cannabis Users from information submitted on applications for such use. (1) The Medical Cannabis Patient Registry and Non-certified User Registry, as well as any information obtained in relation to an application to the registry shall remain confidential and exempt from the Virgin Islands public records law in title 3 chapter 33 of this Code. The OCR may confirm an individual’s status as a Qualified Patient at the request of the individual or the individual’s legal guardian to a third party. (2)