The Rhode Island Cannabis Control Commission and its staff convened behind closed doors for about an hour on Tuesday morning to discuss a recent federal court order that halted the process of awarding 20 new retail licenses, which was anticipated to begin as soon as May. Three and a half hours later, the commission filed an appeal against the ruling issued on April 8 by U.S. District Court Judge Melissa Dubose, which is tied to three federal lawsuits challenging the state’s requirement that all cannabis license holders be primarily owned by Rhode Island residents.
Upon returning to open session, no details concerning the commission’s discussions about the federal lawsuits filed by out-of-state entrepreneurs were made public. The only decision made during the special meeting was to seal the minutes from the executive session and to adjourn around 12:30 p.m. The state appeal was subsequently filed at 4:04 p.m.
Public Update Scheduled
A public update is expected on Friday during the commission’s monthly open session at the Public Utilities Commission offices in Warwick, as confirmed by chief legal counsel Mariana Ormonde. “For many, this seems unexpected,” she remarked. “However, we have been engaged in these litigation cases for years; we even managed to have them dismissed once—now they are back.”
Commissioner Robert Jacquard echoed these sentiments at the start of the meeting, noting, “Litigation cases are discussed in every executive session of our regular monthly meetings. This is not new; we’ve been monitoring this situation closely. In light of the recent opinion, we believe it was prudent to meet promptly due to its significance for many.” The plaintiffs in the lawsuits contend that the residency requirement infringes upon the dormant commerce clause of the U.S. Constitution, which bars states from enacting protectionist legislation against other states.
Judge Dubose had initially dismissed these complaints in February 2025 as two of them were filed before the state’s first cannabis regulations took effect in May 2025. However, a federal appeals court in Boston revived the cases in December, instructing Dubose to rule on their merits. The current injunction against the state means that the 97 prospective applicants cannot have their applications reviewed, prolonging a process that has already been criticized for its slow pace.
Impact on Cannabis Entrepreneurs
Lisa Ann Pontarelli, a part-owner of a social equity applicant in Cranston, expressed her frustration, stating that she and her partners have invested “at least six figures” in their effort to open a shop in a former Pizza Hut location. “Everything is in place and just waiting,” she said while the commission deliberated in closed session. “It’s frustrating to be in limbo because of a judge’s ruling that seems illogical.”
The ACLU of Rhode Island, however, finds validity in the ruling, asserting that federal law typically takes precedence over state law during conflicts. “A state law does not gain immunity from constitutional scrutiny just because individuals argue it should exist,” said ACLU Executive Director Steven Brown.
Legal challenges have emerged in multiple states that have attempted to impose residency requirements, resulting in changes to their retail cannabis licensing rules. Michael Yelnosky, a law professor at Roger Williams University, noted that while cannabis remains illegal federally, states permitting its sale are not shielded from judicial scrutiny regarding the dormant commerce clause.
In response to the current legal challenges, applicant Jason Calderon, aiming to establish a shop in North Kingstown, criticized the commission for not seeking amendments to the law throughout the litigation process. “At any point, they could have reached out to the House or Senate to amend this law. It’s their responsibility,” he remarked.
Upcoming Legislative Changes
Two state lawmakers from Providence have proposed legislation aimed at eliminating the residency requirement within Rhode Island’s cannabis law at the start of the 2026 legislative session. Representative Scott Slater introduced one bill on January 30, followed closely by a companion bill from Senator Jacob Bisaillon on February 6. Both bills underwent committee hearings on March 12 and were held for further study.
However, Brown cautions that the proposed legislation may not fully resolve the state’s legal dilemmas. The bills retain Rhode Island-specific criteria for social equity licenses, which are intended for individuals adversely affected by the war on drugs. The 2022 Rhode Island Cannabis Act stipulates that social equity applicants originate from “disproportionately impacted areas,” raising concerns over potential disqualification of out-of-state applicants.
Ormonde emphasized that the commission’s role is to adhere to the laws established by the General Assembly, stating, “The statute is the legislature’s domain. Cannabis law is evolving, and we strive to comply with the Cannabis Act as mandated.” Slater mentioned he is awaiting guidance from the Cannabis Control Commission’s legal team on wording that could be incorporated to ensure necessary modifications to the state’s cannabis law withstand constitutional review.
As of now, an agenda for Friday’s meeting at 2 p.m. has not been published. The Cannabis Control Commission, though having three members, has been operating with a vacant chair since October when former Chairperson Kim Ahern resigned to chase a run for state attorney general. Olivia DaRocha, a spokesperson for Governor Dan McKee, confirmed that the search for a new chair is a priority, promising updates as they arise.