On Tuesday, the Cannabis Advisory Board convened to discuss and vote on the second fee schedule in the ongoing rollout of legal cannabis across the territory. The meeting addressed a variety of fees for different aspects of the cannabis industry, from cultivation to dispensaries, and highlighted some areas of confusion that may require legislative amendments for clarification.
The board voted to set a scaling cost mechanism for cannabis cultivation operations, ranging from $1,000 for a micro-cultivation permit to $10,000 for large-scale operations. A license to manufacture cannabis-based goods is set at $5,000. Dispensary licenses carry a $25,000 annual fee. First-time applicants will be charged $10,000 upfront, and if they are successful, they will need to pay the remaining $15,000.
The board also voted to set fees for cannabis lounges and on-site cannabis use at $1,500, though board members noted some ambiguity between the two categories. “I’m not exactly 100% sure to be honest what the difference is,” OCR Executive Director Joanne Moorehead. Chief legal counsel for Government House, Richard Evangelista, suggested that a lounge is a space dedicated entirely to cannabis consumption, whereas an on-site permit applies to locations that permit cannabis use but are not exclusively focused on it. “That’s how best I can explain it based on what I just read,” he clarified.
The board recognized that Act 8680, which governs cannabis use in the territory, does not mention cannabis lounges, indicating a potential need for legislative amendments.
Other fees approved included $2,500 for testing facility licenses, with an additional $1,500 for OCR certification. Licenses for research and development, as well as event organizer permits, will each cost $1,500. Approved vendor permits, third-party vendor certifications, and requests to change ownership are set at $1,000 each. Agents, who are authorized representatives of cannabis businesses or those regularly in possession of cannabis due to their services, will be required to pay $250 for their identification cards. All votes were unanimous.
The fees are non-refundable and renewable annually, as noted by Ms. Moorehead. For dispensaries, the $25,000 annual fee will be split, with successful first-time applicants required to pay the remaining balance after their initial $10,000 application fee. Mr. Evangelista praised this structure, saying, “You’ve actually broken it down so that persons are not discouraged. They may still be discouraged, but at least [unsuccessful applicants are] saving themselves $15,000.”
The previous month's Cannabis Advisory Board meeting had resulted in a fee schedule for medical patients, caregivers, practitioners, and sacramental users. On Tuesday, board member Positive Nelson proposed reducing the proposed $75 fee for an ID card for sacramental users to $50 to align it with the fee for medical users. “I thought the medicinal patient and the sacramental user were going to be bracketed together,” Mr. Nelson stated. The board agreed, setting the fee for sacramental organizations' identification cards at $200.
