Overview of Rhode Island Cannabis License Types
The below blog post is for educational purposes only, and is not legal advice and should not be construed as such. If you are looking for legal advice please contact us to set up a consultation: www.greenpathlegal.net/contact
Cannabis is “growing” in Rhode Island. As of 2022, the recreational use of cannabis is legal in Rhode Island under state law. There are many ways to get involved in the cannabis industry. Rhode Island will soon be opening applications for manufacturing licenses and retail licenses.
Manufacturer License
Does compounding, blending, extracting, infusing or preparing cannabis products interest you? If so, then applying for a manufacturing license could be a great option. As we’ve seen in other states, edibles are one of the fastest growing segments of the state legal cannabis industry.
A manufacturer license allows you to purchase cannabis from cultivators and process the product for the purposes of selling the product to licensed cannabis entities. (R.I. Gen. Laws §21-28.11-3(14)) However, a manufacturer licensee is not permitted to transfer cannabis products to consumers. Pursuant to the Rhode Island General Laws, a “product” is intended for the use or consumption of cannabis including edible products, beverages, topical products, ointments, oils and tinctures. (R.I. Gen. Law §21-28.11-3(15)).
Under the same license, a license holder can also act as a wholesaler.
To apply for a license, an applicant must satisfy the following qualifications: apply for a license, provide proof that the applicant is twenty-one (21) years of age or older and is a resident of the state, undergo a criminal record background, provide proof that the applicant is in compliance with filing and payments of taxes with the division of taxation, provide a nonrefundable application fee, and the applicant shall submit an annual license fee to be deposited in the social equity fund. (R.I. Gen. Laws §21-28.11-9(b)). Location is also critical for a manufacturing license, which requires careful consideration of local zoning and approvals needed on the town level.
Unlike the retail licenses, the manufacturer license will not be subject to the lottery system. At the time of writing this, there has not been any information released on when these applications will open.
Retail License
Do you want to directly sell to consumers? A retail license is the right direction. This type of license allows a licensee to sell, deliver or transfer cannabis to establishments and to consumers. (R.I. Gen §21-28.11-10.2 (a)) Retail licenses are more extensive and will require more qualifications in order to obtain this type of license. Retail licenses are issued pursuant to geographical zones.
Under the R.I. General Laws §21-28.11-10.3, there are six geographical zones. Zone 1 consists of the towns of Burrillville, Cumberland, Glocester, North Smithfield, Smithfield, and the City of Woonsocket. Zone 2 consists of the towns of Johnston, Lincoln, North Providence, and the cities of Central Falls and Providence. Zone 3 consists of the towns of Coventry, Foster, Scituate, West Greenwich, and West Warwick. Zone 4 consists of the towns of East Greenwich, North Kingstown and the cities of Cranston and Warwick. Zone 5 consists of the towns of Charlestown, Exeter, Hopkinton, Narragansett, Richmond, South Kingstown, and Westerly. Zone 6 consists of the towns of Barrington, Bristol, Jamestown, Little Compton, Middletown, New Shoreham, Portsmouth, Tiverton, Warren and the cities of East Providence, Newport and Pawtucket. (R.I. Gen. Laws §21-28.11-10.3 (1-6)). Based on a local referendum held in the fall of 2022, these towns will not permit retail dispensaries in their municipality: Barrington, East Greenwich, Jamestown, Little Compton, Scituate and Smithfield.
An applicant shall satisfy these qualifications: apply for a license, provide proof that the applicant is twenty-one (21) years of age and is a resident of the state, undergo a criminal record background check, proof that applicant is in compliance with filings and payments for taxes with the division of taxation, demonstrate that the proposed location is within the municipal zoning and regulations or has been approved by the municipality, payment of a non refundable application fee, and an issuance of a license fee of thirty thousand dollars ($30,000). (R.I. Gen. Laws §21-28.11-10.2 (b))
The state will license 24 new dispensaries, not counting the current hybrid medical/recreational dispensaries. In order to determine who will receive the available licenses, the state will hold a lottery, with 4 applicants being selected for each zone. One of those four licenses will be reserved for a social equity applicant, and another for a worker cooperative. At the time of writing this, there has not been any information released on when these applications will open. If the process goes at all like the last lottery for Compassion Centers, applicants should be ready for a potentially long wait period between the application submission and the lottery, so making sure you have a solid plan in place for the lease or purchase of your location in the event of a delay is key.
Cultivation
IRight now there are too many cultivators licensed in RI, which has created issues with cultivators being able to make enough to keep their doors open. The state is not licensing any new cultivators at this time, but purchasing an existing cultivation license is always an option to explore for someone looking to get into cultivation in RI.
If you are interested in either license type, contact us today to find out more about the process: www.greenpathlegal.com/contactus