“Now we are stopped from continuing that process. But that does not mean we are stopped from figuring out the best path forward.”
By Christopher Shea, Rhode Island Currant
Commissioners and staff acknowledged the frustration felt by applicants and cultivators following the sudden interruption to the process set to distribute 20 new retail licenses as soon as May. Commissioner Robert Jacquard noted that regulators had already been coordinating with the Rhode Island Lottery on equipment and a venue for the selection.
“Now we are stopped from continuing that process,” he said. “But that does not mean we are stopped from figuring out the best path forward to reach our top priority, which is issuing retail licenses.”
The commission is keeping the details of its legal strategy confidential while it appeals the April 8 order from U.S. District Court Judge Melissa DuBose, which temporarily suspended the licensing process.
“Anything used in this public forum can be used against us in the court case,” Mariana Ormonde, chief legal counsel, said at the start of her overview.
Three federal lawsuits brought by out-of-state business owners name the commission as defendant, with each case challenging Rhode Island’s rule requiring all cannabis license holders to be majority-owned by state residents. The plaintiffs in each suit contend that the residency requirement violates the Dormant Commerce Clause of the U.S. Constitution, which bars states from adopting protectionist policies that disadvantage residents of other states.
Two of those cases date back to May 2024 and were dismissed by DuBose in February of last year, only to be reinstated in December after Boston’s federal appeals court directed Rhode Island’s federal court to rule on the merits of the cases.
In her April 8 ruling, DuBose found there was a sufficient likelihood that the three lawsuits would prevail on the merits, which is why she granted the injunction. The state filed its appeal of that order Tuesday afternoon, just hours after commissioners held a closed-door session to discuss the cases.
“That is essentially what is stopping all of the commission’s processes at this point,” Ormonde said.
As a result, 97 applicants remain in an uncertain holding pattern. Frustration over the Cannabis Control Commission’s drawn-out rollout of new licenses had already been building among applicants well before the injunction, spanning the four years since the state legalized recreational marijuana.
“Time is of the essence,” Sasha Gorski, a cultivator and applicant for a retail shop in Providence, told the commission. “Cultivators and prospective applicants are being harmed every day that this continues. We would like to see things move forward as quickly as possible.”
Applicants and cultivators who attended Friday’s meeting were broadly satisfied with the commission’s update on where the case stands—including some who had previously been among the body’s most outspoken critics.
“The explanation was perfect,” Jason Calderon, a cultivator who applied for a retail license in North Kingstown, told Rhode Island Current after the meeting. “At least it lets us know where we are.”
During the public comment period, attorney Allan Fung—the former Republican mayor of Cranston and past candidate for both congressional and gubernatorial office who represents several retail applicants—offered suggestions on how the state might try to resolve the dispute.
One proposal was for the commission to reopen the application process on a strictly merit-based footing, removing any grounds for plaintiffs to argue that applicants hold an unfair advantage. His second suggestion was to issue conditional licenses to the plaintiffs.
“That would moot the lawsuit,” he said.
Jacquard asked Fung to put his recommendations in writing and submit them to the commission so they could give the potential strategies more careful consideration.
“They’re very interesting, but take a while to absorb,” Jacquard said.
This story was first published by Rhode Island Currant.
Photo courtesy of Mike Latimer.