The Rhode Island Cannabis Control Commission convened its first public meeting on Friday following a recent court ruling that temporarily halted the review and awarding of retail cannabis licenses. Both commissioners and staff recognized the frustration expressed by applicants and cultivators due to this sudden pause, which was intended to issue 20 new retail licenses as early as May. Commissioner Robert Jacquard noted that regulators were already collaborating with the Rhode Island Lottery regarding necessary equipment and a venue for the selection process.
“Now we are stopped from continuing that process,” Jacquard stated. “However, that does not preclude us from exploring the best path forward to achieve our top priority: issuing retail licenses.”
Legal Challenges and Strategic Responses
Details on the commission’s legal strategy will remain confidential as they appeal the April 8 order from U.S. District Court Judge Melissa DuBose, which has currently stalled the licensing procedure. Chief Legal Counsel Mariana Ormonde emphasized at the beginning of her presentation that public statements may adversely affect the ongoing court cases.
The commission is currently facing three federal lawsuits from out-of-state entrepreneurs challenging the state’s mandate requiring that all cannabis license holders must be majority-owned by Rhode Island residents. The plaintiffs argue that this residency requirement violates the Dormant Commerce Clause of the U.S. Constitution by engaging in discriminatory practices against other states.
Two of these lawsuits originated in May 2024 and were initially dismissed by DuBose in February of the previous year. However, the cases were later revived following an order from Boston’s federal appeals court, urging a merits-based ruling from Rhode Island’s federal court.
In her April 8 ruling, DuBose indicated that there was a substantial likelihood that the lawsuits would prevail, which led her to grant the injunction. The state’s appeal against this order was filed just hours after the commissioners held a closed-door meeting to discuss the ongoing litigation. “That is essentially what is stopping all of the commission’s processes at this point,” Ormonde explained.
Impact on Applicants
This legal battle has left 97 applicants in a state of uncertainty. Even prior to the injunction, many applicants had expressed dissatisfaction regarding the slow pace of the licensing process since the legalization of recreational cannabis in the state four years ago. “Time is of the essence,” stated Sasha Gorski, a cultivator and retail shop applicant in Providence. “Cultivators and prospective applicants are being harmed every day this continues. We would like to see progress move forward as quickly as possible.”
Attendees at Friday’s meeting were generally reassured by the updates provided by the commission, including some who have been critical in the past. “The explanation was perfect,” remarked Jason Calderon, a cultivator who applied for a retail license in North Kingstown. “At least it lets us know where we are.”
Allan Fung, a former Republican mayor and candidate for Congress and governor, who represents several retail applicants, suggested potential strategies for the commission to consider during public commentary. One recommendation was to reopen the application process based solely on merit, thereby preventing claims of unfair advantages. Another proposal involved granting conditional licenses to plaintiffs to effectively moot the lawsuit. “That would moot the lawsuit,” he asserted.
Jacquard invited Fung to submit his proposals in writing for further consideration. “They’re very interesting, but take a while to absorb,” Jacquard noted.