By Christopher Shea, Rhode Island Current
Rhode Island's Cannabis Control Commission plans to issue $7,500 refunds to 75 businesses that applied for retail cannabis licenses under a process federal courts froze earlier this year.
At a meeting Friday, commission chairperson Michelle Reddish and chief legal counsel Mariana Ormonde laid out a timeline for reopening applications now that lawmakers have repealed the residency requirement that sparked three federal lawsuits.
Since April 8, a federal judge had blocked the commission from reviewing 97 applications submitted for 20 new retail licenses over the requirement that a majority owner live in Rhode Island. On June 10, Gov. Dan McKee (D) signed two bills striking that provision, voiding the initial application round, and directing the commission to launch a new process within 60 days — by August 10.
Ormonde said she expects that deadline to be met but would not commit to an exact restart date, since the commission is still awaiting court sign-off. U.S. District Court Judge Melissa DuBose has said she will grant approval once the litigation is sent down from the federal appeals court in Boston.
Among the original applicants owed refunds, 56 sought general retail licenses, 19 applied as worker cooperatives, and 23 applied under the social equity category for people harmed by past drug enforcement. All applicants pay a $7,500 application fee and a $30,000 annual license fee, though the annual fee is waived for approved social equity applicants in their first year.
Ormonde said the office will email every original applicant to verify the name and address for refund checks. "Starting today, after this meeting, the office will contact each applicant via email to ensure that the name that is going to be going out on that check and the address is correct," she said.
The commission must also build a new certification system for the six social equity licenses, since the revised law removes Rhode Island residency language from eligibility rules. Applicants must still show majority ownership by someone disproportionately affected by prohibition enforcement, such as an arrest to themselves or a family member.
Ormonde said core licensing requirements — proof of property ownership or a lease agreement, plus local zoning approval before applying — will remain unchanged from the first round.
Reddish said: "We understand there may be questions about where things stand and where we are headed. While we can't respond to every headline or comment, we remain committed to being transparent about our work and providing updates where we can."