Rhode Island: Recreational Cannabis Licensing
Last month Rhode Island became the 19th state to legalize and regulate recreational cannabis, with the General Assembly overwhelmingly voting in favor of the legislation. The law legalizes the sale and possession of up to 1 oz. of cannabis for adults aged 21 years and older, with no more than 10 ounces for personal use stored at home.
Cultivation Licenses
Starting August 1, 2022, any medical marijuana cultivator in good standing is permitted to cultivate, manufacture, and process cannabis as a “hybrid cannabis cultivator” for both the medical and adult use market, subject to an application and fee to be deposited in the Social Equity Fund and as yet to be determined by the final rules.
This coincides with the two-year moratorium on any new cultivation licensing, which will begin with the promulgation of the final rules. Any new license issued after the 2-year moratorium is lifted, will be limited to a total 10,000 SF.
Recreational Licenses
Recreational sales will begin December 1st of this year with 33 retailers allowed to sell to the recreational market across the state. Starting October 15, the nine existing medical compassionate use centers in good standing can seek permission to sell to the adult use market upon application and payment of a $125,000 activation fee to receive a “hybrid cannabis retailer” license. Where physically possible, medical licensees seeking adult use approval will also be expected to physically separate medical and adult use inventories, storage areas, sales floors, and displays, with priority given to patient confidentiality and care in the event of capacity issues. If it is physically impossible to separate such activities, the state may consider allowance of adult use sales at an additional location in the same municipality its medical use is licensed, pending compliance with additional specific requirements.
Twenty-four (24) additional “retailer” licenses will be available via an application process once the final rules are released. Each retail license will be issued pursuant to one of the six geographic zones listed below.
· Zone 1: Burriville, Cumberland, Glocester, North Smithfield, Smithfield, and Woonsocket
· Zone 2: Johnston, Lincoln, North Providence, Central Falls, and Providence
· Zone 3: Coventry, Foster, Scituate, West Greenwich, and West Warwick
· Zone 4: East Greenwich, North Kingstown, Cranston, Warwick
· Zone 5: Charlestown, Exeter, Hopkinton, Narragansett, Richmond, South Kingstown, and Westerly
· Zone 6: Barrington, Bristol, Jamestown, Little Compton, Middletown, New Shoreham, Portsmouth, Tiverton, Warren, East Providence, Newport, and Pawtucket.
Per the rules, only four total retail licenses are allowed in each zone, with two of those licenses reserved for qualifying social equity and workers’ cooperative applicants. Thus, a total of six of those 24 licenses will be reserved for qualifying social equity applicants. An additional six licenses will be reserved for qualifying worker-owned cooperative applicants, defined as an applicant organized and operated pursuant to Rhode Island General Laws s. 7-6.2, which is democratically controlled and operated by its workers. This leaves 12 retail licenses available for the general application pool. It should be noted that all applicants must meet additional residency requirements in order to be considered for any license type.
Application Process
The application process for existing medical licensees to secure hybrid retail and hybrid cultivation licenses will open this year on October 15, 2022, which is the statutory date set for the state to publish all forms, procedures, and requirements on the Office of Cannabis Regulation’s website. Applications will be received, reviewed, and approved on a rolling basis. However, approved hybrid retailers will only be allowed to commence adult use sales on December 1, 2022.
Local Control
While the municipalities currently hosting medical marijuana dispensaries will not be able to opt out of the adult use program (e.g., Providence, Warwick, Portsmouth), other communities can through a referendum vote on the ballot this November.
For more details on qualifying as a social equity applicant, worker-owned cooperative applicant, meeting residency requirements, or the licensing process in general, contact Global Go today.
Simone Sandoval
Partner / Director of Licensing and Compliance
Simone focuses on cannabis licensing and compliance and has extensive experience in understanding and deciphering complex cannabis regulations. Prior to entering the cannabis industry, Simone worked in Washington, D.C. as an intern for Congressman Raul Ruiz, M.D. (CA-36). During her time on the Hill, she worked on legislation, and researched policy on renewable energy, healthcare, and tribal relations.
About Global Go
Global Go provides sophisticated consulting services to the global cannabis and hemp industry. In tandem with strategic allies around the world, Global Go serves clients throughout the world from offices in Austin, Bogota, Chicago, Cyprus, Denver, Johannesburg, London, Los Angeles, Mexico City, New York, Palm Springs, Phoenix, Quito, São Paulo, Silicon Valley, Toronto, and Zurich. Powered by a team of cannabis industry pioneers and world-class consultants, Global Go helps leading cannabis funds and companies assess and enter new markets; acquire assets; raise capital; launch new product lines; improve SOPs; comply with regulations; implement technology and security systems; find talent; diagnose and execute solutions to growth obstacles; and apply for cannabis licenses (with a 99% success rate on over 175 cannabis license applications across the United States). Learn more at https://globalgo.consulting.
