Rhode to Green: Expanding Cannabis Licenses in the Ocean State
Rhode Island is taking a significant step toward expanding its cannabis industry with a unique licensing approach for 24 new retail licenses up for grabs. Having initially awarded six dispensary licenses in 2021, the state is now poised to expand its cannabis market by issuing additional licenses, paving the way for increased access and competition in the industry. While many states have recently shifted to a random lottery system, abandoning merit-based processes, Rhode Island is opting for a hybrid model. This approach combines a merit-based screening process to ensure applicants “ability and readiness for licensure”, followed by a lottery to determine the final recipients. This blend seeks to balance fairness and transparency while avoiding some of the legal challenges other states have faced.
In this licensing system, retail licenses must be evenly distributed across six geographic regions (shown below), with a maximum of four stores per zone. Out of these four licenses, two are reserved for a social equity applicant and a workers’ cooperative (business owned by employees). The social equity statute provides various criteria for defining a disproportionately impacted area. Under the Rhode Island Cannabis Act, those areas can be determined by federal poverty level, unemployment rate, how many kids in a free lunch program, and historic arrest rates.
Similar to Rhode Island, neighboring states like Connecticut and Massachusetts have adopted similar approaches to cannabis licensing. Connecticut, which legalized adult-use cannabis in 2021, follows a very identical hybrid structured process. In Massachusetts, while there is no limit on the number of retail licenses, prospective businesses must first obtain local planning and zoning approval before applying to the state’s Cannabis Control Commission.
There are still some unknowns, such as the exact fees associated with applying for a license, the exact social equity requirements, and most importantly, the final regulations. Until those final rules are set, the 24 new retail licenses cannot be awarded, leaving many cannabis cultivators anxious and eager for additional avenues to sell their products. All eyes now await the 18-member Cannabis Advisory Board as stakeholders anticipate the critical decisions that will shape the future of Rhode Island’s cannabis industry.
Start early and position yourself ahead of the completion. Enhance your prospects for success by reaching out to a Global Go Cannabis Application Director and accessing invaluable Rhode Island insights today.
