Rhode Island Adult Use Cannabis Sales on the Horizon with Release of Hybrid Cultivation License Applications
By Meg Nash
Jul 26, 2022
The Rhode Island Cannabis Act (RICA) allows licensed medical marijuana cultivators to exclusively produce adult-use cannabis beginning on August 1, 2022. Similarly, licensed compassion center retailers are eligible to sell cannabis for adult use starting on December 1, 2022. With deadlines quickly approaching, the Office of Cannabis Regulation (OCR) released the hybrid cultivation applications on July 26, 2022 and announced that hybrid retail applications would be available no later than October 15, 2022.
During a recent webinar, OCR provided additional guidance on the upcoming licensing process. As a prerequisite to becoming a hybrid licensee, all applicants must have either a medical cultivation or medical compassion center license that is current and in good standing. Any open or pending investigations or enforcement actions will materially impact the department’s view of a licensee’s overall standing for purposes of hybrid eligibility.
With respect to fees, hybrid retail applicants will be required to pay a one-time $125,000 fee, in addition to a $3,500 fee. The following fee schedule applies for cultivators:
This fee schedule will remain in effect through June 23, 2023. During this transitional period before final rules and regulations are promulgated by the Cannabis Control Commission, all existing medical marijuana rules and regulations remain in effect.
Additional notable information provided by OCR includes:
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Cultivators will be able to designate existing medical products as adult-use products at the point of wholesale by identifying them as such in the sales manifest
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According to RICA, hybrid retailers will be required to enter into a Labor Peace Agreement in order to obtain a hybrid retail license
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Hybrid retailers will be required to include permanent or semi-permanent barriers at the point of sale, or private patient consultation rooms in order to ensure patient confidentiality
OCR expects to issue additional guidance, including a Frequently Asked Questions document, in the coming weeks.
The soon-to-be-created Cannabis Control Commission (and not OCR) is responsible for implementing rules and regulations regarding the manner and timing of awarding new retail licenses.
Vicente Sederberg’s team is monitoring all developments in Rhode Island. Please contact us for assistance in achieving your goals in this new market.