Rhode Island's Cannabis Control Commission has asked a federal judge to dissolve a court order that froze the state's first round of recreational marijuana retail license applications, now that lawmakers have scrapped the residency requirement at the center of the dispute.
Gov. Dan McKee (D) signed two bills on June 10 removing a provision from the 2022 Rhode Island Cannabis Act that had required cannabis retailers be majority-owned by state residents. The new law voids the original application process and starts a fresh one, defining "applicant" as any person or business that has "made an application for issuance of a license or certificate to own or engage in a cannabis business."
The legislation also strips Rhode Island residency references from eligibility rules for six social equity licenses reserved for people harmed by the war on drugs. Businesses seeking those licenses must now be majority-owned by individuals who can show they were disproportionately affected by past drug-law enforcement, including through their own arrest or that of a family member.
State attorneys argue these changes render moot the April 8 preliminary injunction issued by U.S. District Judge Melissa DuBose, which had blocked regulators from holding a licensing lottery planned for May and halted review of retail applications submitted by the Dec. 29, 2025 deadline. DuBose's ruling came amid three lawsuits challenging the original residency mandate.
In a motion filed Friday, the commission asked DuBose to dissolve the injunction, writing: "The goals of this court's preliminary injunction have now been made permanent by the General Assembly's legislative action. Thus, this court's preliminary injunction is now moot and essentially a legal nullity."
The new law requires the commission to reopen the application process within 60 days, by Aug. 10. Commission spokesperson Charon Rose said staff are still working out next steps: "We're hopeful that once we get the go-ahead with the appropriate people that we can get the process moving again."
About 100 applicants remain in limbo, some still paying rent on storefronts they may never open. While rent payments won't be reimbursed, the new law lets first-round applicants recoup fees paid to the commission. Prospective retailers must pay a $7,500 application fee and a $30,000 annual licensing fee, though fees were waived for the first year for approved social equity applicants. Rose confirmed no refunds had been issued as of Monday.
This story was first reported by Rhode Island Current, written by Christopher Shea.