Rhode Island cannabis officials are asking a federal judge to lift a temporary block on retail marijuana licenses, following the state’s decision to officially scrap its controversial residency requirements.
The Residency Roadblock Resolved
In April, a federal injunction halted Rhode Island’s retail license lottery and suspended all application reviews. The court order stemmed from lawsuits challenging a provision in the original 2022 Rhode Island Cannabis Act that required all recreational dispensaries to be majority-owned by state residents.
On June 10, Governor Dan McKee signed new legislation that completely eliminates this in-state residency mandate. The revised law also updates the criteria for social equity licenses—which are reserved for individuals adversely affected by the war on drugs—by removing any Rhode Island-specific geographic requirements.
With these legislative fixes enacted, the state’s Cannabis Control Commission filed a motion arguing that the goals of the April court injunction have been met, making the block “moot and essentially a legal nullity.”
What Happens to the Original Applicants?
While the legislative update solves the legal issue, it officially voids the first application process and forces regulators to start over.
This leaves roughly 100 original applicants in a difficult position, as many have been paying rent on vacant storefronts while their applications were frozen in legal limbo. Here is where things currently stand for those prospective business owners:
- The New Timeline: The commission is required to open a brand-new license application process by August 10 (60 days from the bill’s signing).
- Fee Refunds: The new law allows first-round applicants to be refunded for any fees paid to the commission. Originally, this included a $7,500 application fee and a $30,000 annual licensing fee.
- Next Steps: As of this week, no refunds have been issued. The commission stated it is waiting for the judicial green light before officially getting the new process moving again.
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