Rhode Island Legislation Addresses Cannabis License Resident Requirements
The Rhode Island Cannabis Legalization Law is being amended by the introduction of a new bill that removes existing requirements regarding residency for cannabis licenses. A judicial ruling last month halted state industry licensing, which was due in part to residency requirements. This proposed legislation is intended to remove language that requires that Rhode Islanders own cannabis businesses and that at least 50% of the company’s ownership be held by a Rhode Island resident.
The new law seeks to change the current framework. This has led to a pause on licensing. According to a report, state Cannabis Control Commission has appealed a judge’s order to suspend licensing. However, this decision remains in force. Ganjapreneur.
Social Equity Provisions Proposed Changes
The bill includes changes to social equity provisions in the state law, as well. The proposal, in particular, removes “disproportionately affected” areas from the list of social equity licensing. In parallel, the proposal broadens definitions of social equity applicants.
The proposed changes would allow those holding at least a 51% share of the company to apply for social equity. This is because they have been “disproportionately affected” by cannabis law enforcement. This definition is expanded to include any arrest or conviction from any jurisdiction for a marijuana offense that happened prior May 25, 2022 for conduct deemed now legal by the state’s law on adult-use cannabis.
License Process Impact
The bill, if approved by the legislature, would require a restart in the cannabis licensing process. This law requires the Cannabis Control Commission to restart licensing according to the new rules 60 days following the bill’s passage. This provision was designed to break the current impasse that has been caused by the recent judicial stoppage and enable the state’s marijuana market to move forward with their regulatory framework.
Statutory Status
The House Corporations Committee is currently reviewing the bill. Last week the committee recommended the bill to be held back for more study. The procedure indicates that additional study will take place before the legislation can be considered for advancement through the state legislative process. The result of the bill will affect ownership structure and equity in Rhode Island’s regulated marijuana industry.
Disclaimer: The information contained in this article does not constitute a medical recommendation. Hemp Gazette makes no medical diagnoses, recommendations or treatment plans. Before making decisions about your health, or any other medical conditions, always consult with a qualified healthcare provider. The Therapeutic Goods Administration in Australia (TGA) has not evaluated any statements regarding the therapeutic use of cannabis or hemp-derived products. TGA regulates the access to medical cannabis in Australia.