Marijuana Moment: Rhode Island Officials Will Refund Marijuana Business License Application Fees As Process Restarts Following Litigation

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“We understand there may be questions about where things stand and where we are headed.”

By Christopher Shea, Rhode Island Current

Seventy-five prospective Rhode Island cannabis retailers will soon receive $7,500 refunds as state regulators prepare to restart the licensing process that was halted under a federal court order.

The Rhode Island Cannabis Control Commission on Friday received an update on the timeline for restarting the state’s cannabis retail licensing process after lawmakers eliminated the residency requirement that prompted multiple federal lawsuits that upended the first round of applications.

The new cannabis law allows any would-be shop owners who applied the first time for a license to be refunded any fees paid to the commission.

“We understand there may be questions about where things stand and where we are headed,” Michelle Reddish, the commission’s new chairperson, said during the meeting. “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.”

Mariana Ormonde, chief legal counsel for the commission, said during Friday’s meeting that emails would be sent to the owners of would-be pot shops who paid the initial fee with their applications.

All prospective retailers are required to pay an application fee of $7,500 and a yearly $30,000 licensing fee. Fees were waived for the first year for approved social equity applicants.

Over half of all applicants—56—sought general retail licenses. Another 19 were worker cooperatives while the remaining 23 were for social equity applicants, or those adversely affected by the war on drugs.

“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,” Ormonde said.

Since April 8, the Cannabis Control Commission has been barred from reviewing the 97 license applications submitted for 20 new retail cannabis licenses after a federal judge halted the licensing process amid three lawsuits challenging the state’s requirement that the majority of a business must be owned by a Rhode Island resident.

But on June 10, Gov. Dan McKee (D) signed a pair of bills to undo the contested provision. The new law voided the original application process and directs the Cannabis Control Commission to open a new license application process within 60 days, which would be August 10.

Ormonde believes regulators will be able to meet that deadline. But she did not commit to a firm timeframe when applications will officially launch since regulators are awaiting court approval, which U.S. District Court Judge Melissa DuBose said she would grant once the lawsuits are kicked down from Boston’s appellate court.

Regulators also first have to set up a new certification process for social equity business, a specialty license reserved for those adversely affected by the war on drugs. The new statute eliminates any Rhode Island references in the eligibility criteria for applying for one of six social equity licenses.

Businesses must still be majority owned by one or more people who can show they were disproportionally impacted by criminal enforcement of past prohibitions, including being arrested or having a family member who was.

Ormonde said final license application criteria will remain the same as the first go-around, which required all would-be retailers to either own property or have a lease agreement before they even apply for a license, along with local zoning approvals.

This story was first published by Rhode Island Current.

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