Search Results for "rhode island"

Rhode Island Gov. Wants to Give Cannabis Industry 280E Tax Workaround

2/21/2024

Rhode Island Gov. Dan McKee (D) has proposed decoupling state and federal taxes for cannabis industry operators as a partial workaround for IRS code 280E, Marijuana Moment reports.

The cannabis industry pays an exorbitant amount of taxes as a result of 280E, which prohibits companies from taking normal business tax deductions if their work is tied to a federally prohibited substance (cannabis is still declared Schedule I under the federal Controlled Substances Act).

The governor included the tax relief language as part of his budget proposal for the fiscal year 2025, stating that “Rhode Island would join Massachusetts and Connecticut, and at least 10 other states, in decoupling from this federal policy,” and estimating that the move would save cannabis operators $824,642 in the fiscal year 2025 and $1.7 million in the fiscal year 2026.

The tax relief language is supported by Cannabis Control Commission (CCC) Chair Kim Ahern, who attended the House Finance Committee meeting last week addressing the governor’s budget proposal, the report said. Lawmakers have not yet voted on the budget proposal.

It’s possible the cannabis industry could soon find tax relief at the federal level if the Biden Administration were to either reschedule cannabis from Schedule I to Schedule III — as was recommended last year by the U.S. Department of Health and Human Services — or remove cannabis from the federal drug schedule entirely, a move that was recently suggested by a group of Senate Democrats.

Rhode Island passed its cannabis legalization law in 2022 and the state’s licensed cannabis dispensaries earned more than $100 million in combined medical and adult-use sales during their first full year of adult-use operations.

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Rhode Island Tops $100M During First Year of Adult-Use Cannabis Sales

12/22/2023

Rhode Island dispensaries sold more than $100 million worth of combined medical and recreational cannabis products during the state’s first year of adult-use operations, according to data from the Rhode Island Department of Business Regulation.

Adult-use cannabis sales launched in the state on December 1, 2022, and the state’s monthly adult-use sales exceeded $7 million for the first time in August, which also marked the year’s peak total sales of just under $9.7 million. In total, the state sold $35.1 million worth of medical cannabis products and $69.8 million worth of adult-use products during the first 12 months of recreational sales, which far exceeded initial projections of $50 million, MJBizDaily reported.

The boosted sales could be attributed to the statewide legalization of cannabis advertisements midway through the year.

“A year into adult-use cannabis sales in Rhode Island, we are proud of the careful execution that defined our entry into this industry. This success represents growing opportunity for our state’s economy but also for the nearly 70 licensed cultivators, processors, and manufacturers in the State of Rhode Island which we know are integral to our local cannabis supply chain.” Gov. Dan McKee (D), in a statement

Notably, the number of registered medical cannabis patients in Rhode Island fell from 15,062 last December to 10,037 in November.

Rhode Island, which passed its adult-use cannabis legalization law in May 2022, was the 19th U.S. state to adopt the reforms.

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Rhode Island Adult-Use Cannabis Sales Hit Monthly High of $7.11M in September

10/23/2023

Adult-use cannabis sales in Rhode Island reached a new monthly sales record in September, totaling $7.11 million, NBC 10 News reports. Adult-use sales totals are now back on track to meet the state’s annual revenue projections of $76 million for fiscal year 2023 after a slow start earlier in the year.

When the adult-use cannabis market launched in the state in December 2022, the state had imposed an advertising ban on cannabis dispensaries; however, that ban was lifted in June and led to an 11% increase in adult-use cannabis sales that month, the report says.

Cannabis Control Commission Chair Kim Ahern told NBC 10 News that while she believes allowing advertising is playing a role in the sales increase, she also attributes the growth to “getting the general message out” about a safe and regulated market.

Rhode Island regulators have yet to award 24 retail licenses and once those licenses are active, officials expect sales will increase. In all, the state will allow a total of 33 adult-use cannabis licensees, which both officials and business owners hope will prevent the industry oversaturation that’s occurred in neighboring Massachusetts. Officials plan to begin issuing those licenses next year.

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Rhode Island Dispensary Sues Over Labor-Peace Requirements for Cannabis Licenses

7/13/2023

A Rhode Island cannabis dispensary has filed a lawsuit over labor peace agreement provisions in the state’s cannabis legalization law, the Boston Globe reports. Greenleaf Compassionate Care Center argues that it was “coerced into entering an oppressive collective bargaining agreement” because of the 2022 law.

The law included requirements that licensed cannabis dispensaries in the state enter into “labor peace agreements” with a “bona fide labor organization” even if the business existed prior to the law’s passage. Greenleaf has been a licensed medical cannabis dispensary in the state since 2013.

In the lawsuit, filed Monday in U.S. District Court in Rhode Island, Greenleaf argues that the business had “little bargaining leverage” with its workers, who voted in 2021 to organize under the United Food and Commercial Workers (UFCW) Local 328. The workers had initially voted to unionize in 2021, prior to the legalization law taking effect, but negotiations were ongoing when the legalization law passed in May of 2022, the report says.

In an email to the Globe, Greenleaf CEO Seth Bock said that while labor negotiations were underway, the company realized they had lost all of their bargaining power with the passage of the adult-use law and its labor-peace provisions.

In an interview with the Globe, Marc Gursky, the attorney for the UFCW Local, disputed the premise of Greenleaf’s lawsuit, noting the previous negotiations.

“A labor peace agreement is about access, so that a union has a fair chance of organizing a workplace in exchange for giving up a right to strike. Greenleaf never entered into a labor peace agreement.” — Gursky to the Globe

State Rep. Scott Slater (D), who sponsored the cannabis law, said unions and activists had lobbied for the labor agreement provisions and that the groups also successfully pushed for some cannabis licenses to be reserved for worker co-operatives.

The suit names the state, all of the members of the R.I. Cannabis Commission, and UFCW Local 328 as defendants.

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Rhode Island Expunges 23K Cannabis Possession Charges

6/09/2023

The Rhode Island Judiciary has so far expunged 23,000 criminal records related to cannabis possession, WPRI reports. The affected cases include 3,015 in Superior Court, 10,650 in District Court, and 9,952 in the Rhode Island Traffic Tribunal.

The expungement provisions were included in the state’s adult-use cannabis law, which was signed by Gov. Dan McKee over a year ago.

In an interview with WPRI, State Court Administrator Julie Hamil called the automatic expungements “an organizational feat.”

“There has been coordination at every level of the judiciary to execute this process in a timely and holistic fashion.” — Hamil to WPRI

The law included an April 30 deadline to complete the expungement process for singular, simple cannabis possession charges, and officials met that requirement. The second phase of the expungement process will focus on cases where cannabis possession was one of multiple charges or counts. The Rhode Island Judiciary indicated that the courts are on track to complete the expungement process for those cases by July 1.

Mavis Nimoh, executive director for the Center for Health and Justice Transformation described the process as “seamless,” adding that “so many Rhode Islanders are grateful for its expediency.”

“Common sense policy on criminal record relief is desperately needed as the state enters into a burgeoning economy that for far too long has penalized its citizens,” Nimoh said.

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Rhode Island House Approves Cannabis Advertising Bill

5/10/2023

The Rhode Island House on Tuesday unanimously approved a bill to allow state-approved cannabis companies to advertise on billboards, the Boston Globe reports. Under the state’s cannabis legalization law, Rhode Island businesses were not allowed to advertise on billboards; however, companies in neighboring states, including Massachusetts and Connecticut, were advertising on billboards in the state.

State Rep. Scott A. Slater (D), who introduced the cannabis legalization and advertising bills, said the state’s dispensaries were at “a serious disadvantage” because they were not allowed to advertise on billboards while out-of-state companies were already doing so.

“Now that Rhode Island’s recreational cannabis industry is up and running, our dispensaries are facing a significant obstacle when competing with our neighbors in Massachusetts and Connecticut. … This bill will correct this inequity while also supporting these new local businesses in Rhode Island by hopefully keeping Rhode Islanders from crossing the border to shop for their cannabis in neighboring states.” — Slater to the Globe

The bill allows the state Office of Cannabis Regulation to provide cannabis companies with forms, policies, and requirements for advertising products in the state.

The measure still requires approval from the state Senate and by the governor.

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Rhode Island Retails $1.6M of Cannabis During Market’s First Week

12/09/2022

Rhode Island cannabis dispensaries collectively sold more than $1.63 million worth of cannabis during the state’s first week of adult-use sales, WPRI reports.

The cannabis sales total covers about $786,000 worth of adult-use cannabis and $845,400 worth of medical cannabis. The state can expect roughly $133,600 in cannabis taxes from the first week with about $23,500 in taxes going to the local governments which host the shops — adult-use cannabis sales in the state are taxed at 20% while medical sales are only subjected to the state’s 7% sales tax.

For comparison, the state recorded just over $1 million worth of medical cannabis sales during the last week of October.

In addition to the December 1 launch of adult-use sales, Rhode Island has also stopped charging fees for medical cannabis patients to register or renew their registration for the program. The state is also anticipating lower revenue due to the loss of cannabis-based court fees following the mass expungement of cannabis possession charges. In total, the state’s Office of Management and Budget said it expects to net just $368,000 after expenses from this fiscal year’s anticipated $5.9 million in cannabis tax revenue.

Rhode Island became the 19th U.S. state to legalize adult-use cannabis earlier this year. Under the measure, adults 21 and older are allowed to purchase and possess up to an ounce of cannabis, keep up to 10 ounces of cannabis at home, and home-grow up to six cannabis plants.

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Rhode Island Launches Adult-Use Cannabis Sales

12/01/2022

Adult-use cannabis sales officially launched in Rhode Island today, December 1, with the industry’s first customers lining up at licensed dispensaries in anticipation, WJAR reports.

The sales launch comes just over a week after regulators awarded hybrid retail licenses to five of the state’s six medical cannabis “compassion centers,” giving them the go-ahead for adult-use sales.

“There should be a lot of economic injection that should come out of this as sales really start to roll through a much more regulated market. We think there should be tons of opportunities for everyone within the state.” — Anthony Georgiadis, CFO of Green Thumb Industries, via WJAR

The Department of Business Regulation said Rhode Island had moved faster than any other New England state in adopting and implementing its adult-use reforms, according to the report.

The state’s top cannabis regulator, Matt Santacroce, said his office is hiring new staff and plans to triple its cannabis inspection abilities.

Rhode Island was the 19th U.S. state to adopt significant cannabis reforms after lawmakers passed the state’s legalization bill earlier this year. Under the measure, adults 21 and older can purchase and possess up to an ounce of cannabis, keep up to 10 ounces at home for personal use, and home-grow up to six (three mature, three immature) cannabis plants.

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Rhode Island Adult-Use Cannabis Sales Launch Next Week

11/23/2022

The launch of Rhode Island’s retail cannabis industry is officially set for next Thursday, December 1, WPRI reports.

Consumers aged 21 or older will be able to purchase cannabis products from five of the state’s six licensed medical cannabis “compassion centers” after officials approved hybrid retail cannabis licenses on Tuesday for each company that had applied for one. The new licenses will allow the retailers to sell cannabis products for both the medical and adult-use markets.

Rhode Island officials awarded licenses to the following cannabis compassion centers:

Aura of Rhode Island (in Central Falls)
Thomas C. Slater Center (in Providence)
Mother Earth Wellness (in Pawtucket)
Greenleaf Compassionate Care Center (in Portsmouth)
RISE Dispensary (in Warwick)

Gov. Dan McKee called the licensing step a “milestone” for the state denoting that its “entry into this emerging market was done in a safe, controlled and equitable manner.”

“It is also a win for our statewide economy and our strong, locally based cannabis supply chain, which consists of nearly 70 licensed cultivators, processors and manufacturers in addition to our licensed compassion centers.” — Gov. McKee, via WPRI

Rhode Island became the 19th state to legalize adult-use cannabis in May after state lawmakers approved a legalization bill which was signed into law promptly by the governor. Under the measure, adults aged 21+ can purchase and possess up to an ounce of cannabis and keep 10 ounces at home for personal use. Adults can also home-grow up to six plants, including three mature and three immature plants. The state plans to license 33 cannabis retail locations in total and impose a 10% excise tax on the industry alongside the state’s 7% sales tax, with an additional 3% tax which will go to municipalities.

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FDA Hires Former New York & Rhode Island Cannabis Regulator as Senior Policy Advisor

10/05/2022

The Food and Drug Administration (FDA) last week hired Norman Birenbaum to serve as its first senior policy advisor on cannabis, LA Weekly reports. Birenbaum most recently served as director of cannabis programs for New York State. Prior to that role, he served as Rhode Island’s top cannabis regulator.

Birenbaum was also one of the founding members of the Cannabis Regulators Association, which was formed to link regulators across states to collaborate on industry policies and best practices.

NORML Political Director Morgan Fox told LA Weekly that given the FDA’s “ineffective approach” to cannabis policy over the years “it is good to see them being more proactive and bringing on people with actual cannabis experience.”

“The FDA’s work related to cannabis is likely going to increase and become more complicated in the not-too-distant future, and it should be preparing for this now by continuing to bring on additional staff with a wide array of expertise in the space.” — Fox to L.A. Weekly

Aaron Smith, founder of the National Cannabis Industry Association. Told L.A. Weekly that the organization is “hopeful that Mr. Birenbaum’s background in cannabis regulations will bring to the FDA the experience and understanding of the nuances they will need to effectively regulate the vastly diverse array of cannabinoid products, including CBD products an increasing number of Americans are relying on for pain relief and other benefits.”

In his FDA role, Birenbaum will be working with the Center for Regulatory Programs to advise on projects involving cannabis research and the regulation of cannabis products. In New York, Birenbaum helped oversee the implementation of rules that allowed CBD and other hemp-derived cannabinoid products to be sold as food, beverage, and dietary supplements.

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31 Rhode Island Municipalities to Vote on Allowing Local Cannabis Sales in November

8/15/2022

Thirty-one Rhode Island municipalities will vote in November on whether to allow cannabis sales in their jurisdiction, WPRI reports. The cities and towns must decide whether to opt out or they will not be able to prohibit retail cannabis sales in their communities.

The towns that will vote on allowing cannabis sales include:

Barrington
Bristol
Burrillville
Charlestown
Coventry
Cumberland
East Greenwich
East Providence
Glocester
Hopkinton
Jamestown
Johnston
Lincoln
Little Compton
Middletown
Narragansett
Newport
New Shoreham
North Kingstown
North Providence
North Smithfield
Richmond
Scituate
Smithfield
South Kingstown
Tiverton
Warren
Westerly
West Greenwich
West Warwick
Woonsocket

Rhode Island lawmakers approved adult-use cannabis legalization legislation in May and Gov. Dan McKee (D) signed the reforms into law two days later. Under the measure, adults 21 and older can purchase and possess up to an ounce of cannabis and keep 10 ounces at home for personal use. Adults can also cultivate up to six plants at home, including three mature and three immature plants. The state will license 33 retailers across six zones and impose a 10% excise tax, along with the state’s 7% sales tax, and a 3% tax which would go to municipalities.

Towns and cities that opt out of sales are not eligible for any of the revenue from retail cannabis sales. An early fiscal note on the bill estimated first-year sales – from 2023 to 2024 – would lead to $14 million in new revenue for Rhode Island with cities and towns each receiving about $2.5 million.

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Rhode Island Schools to Develop Medical Cannabis Protocols for Students

7/18/2022

Rhode Island school districts must develop protocols for administering medical cannabis to students, the Providence Journal reports. The changes to the state’s regulations occurred last month and students must be registered patients, with a doctor’s note, and parental approval.

According to the state Health Department, there are currently just 22 patients in the state younger than 18 who hold a medical cannabis recommendation.

Medical cannabis was not previously prohibited in schools, Health Department Spokesman Joseph Wendelken told the Journal, but the revised regulation provides guidance to districts regarding implementation.

Under the rules, students with medical cannabis cards can’t smoke their medicine and it can only be administered in specific locations and can’t be administered on school trips. Students with a recommendation can’t be disciplined for treatment or considered “under the influence” of cannabis. Students can’t handle or administer the medical cannabis products themselves. A school nurse can refuse to administer cannabis to students as long as that refusal applies to all students and in that case, the nurse must make other arrangements for the students to use their medicine.

The regulations require parents to release schools from any liability unless educators intentionally disregard the provisions of the rules.

Michael Cerullo, a licensed psychotherapist and founder of What’s the Rush Rhode Island, told the Journal that the regulation’s definition of medical cannabis excludes cannabinoid medications approved by the Food and Drug Administration, which he said “makes absolutely no sense.” he added that he is also concerned that the “regulation does not make clear whether the prescriber must have a previous and ongoing relationship with the patient.”

The policy was developed by the state departments of Education and Health.

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Rhode Island Becomes 19th State to Legalize Cannabis

5/26/2022

Rhode Island Gov. Dan McKee (D) on Wednesday signed the bill to legalize cannabis for adult use just one day after it was approved by the Legislature, WPRI reports. Rhode Island is the 19th state to legalize cannabis for adult use.

“This bill successfully incorporates our priorities of making sure cannabis legalization is equitable, controlled and safe.” – McKee, during the signing ceremony, via WPRI

Under the measure, adults 21-and-older can purchase and possess up to an ounce of cannabis and keep 10 ounces at home for personal use. Adults can also cultivate up to six plants at home, including three mature and three immature plants. The state will license 33 retailers across six zones and impose a 10% excise tax, along with the state’s 7% sales tax, and a 3% tax which would go to municipalities.

The legislation also includes automatic expungement provisions, giving the courts until July 1, 2024, to provide relief to all that are eligible. Any prior civil violation, misdemeanor, or felony conviction for cannabis possession that is legal under the law will be automatically erased from court record systems under the criminal justice reforms.

An early fiscal note on the bill estimated first-year sales – from 2023 to 2024 – would reach $14 million in new revenue for Rhode Island with cities and towns receiving about $2.5 million, the report says. More than $5 million would be used to administer the program, the note estimated; however, the bill passed by the Legislature did not include fiscal estimates and assumed sales would begin on October 1 while they are expected on December 1.

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Rhode Island Lawmakers Approve Cannabis Legalization

5/24/2022

The Rhode Island Legislature on Tuesday voted to legalize cannabis for adult use, moving it to Gov. Dan McKee (D) who is expected to sign the bill today, the Providence Journal reports. The measure passed the House 55-16 and the Senate 32-6.

Senate Majority Leader Michael McCaffrey (D) called the bill’s passage “a truly momentous day for Rhode Island.”

“Ending cannabis prohibition helps us right past wrongs while creating new opportunities for all Rhode Islanders. This is the right move, at the right time, for our state.” – McCaffrey via the Journal

Under the bill, adults 21-and-older can purchase and possess up to an ounce of cannabis and keep 10 ounces at home for personal use. Adults can also cultivate up to six plants at home, including three mature and three immature plants. The state would license 33 retailers across six zones and impose a 10% excise tax, along with the state’s 7% sales tax, and a 3% tax which would go to municipalities.

The legislation also includes automatic expungement provisions, giving the courts until July 1, 2024, to provide relief to all that are eligible. Any prior civil violation, misdemeanor, or felony conviction for cannabis possession that is now legal under the law would be automatically erased from court record systems under the criminal justice reforms.

Once signed by McKee, legal cannabis sales could commence by December 1 and it is likely the state’s current medical cannabis businesses would be the state’s first retailers. If the bill is given final approval by the governor, Rhode Island will become the 19th state to allow adult cannabis use and regulated cannabis sales.

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Rhode Island Lawmakers Advance Cannabis Legalization Bill

5/19/2022

Two Rhode Island legislative committees on Wednesday advanced the Rhode Island Cannabis Act, setting the bill up for votes in both the House and Senate next week, WJAR reports. The measure passed the Senate Judiciary Committee 9-1 and the House Finance Committee 12-2.

Democratic Gov. Dan McKee told WJAR that he is “willing to sign the piece of legislation” the way he understands “it’s going to be delivered.” The proposal approved by the committees was amended to include automatic expungement for any prior civil violation, misdemeanor, or felony conviction for possession of cannabis decriminalized under the bill.

State Sen. Joshua Miller (D), the sponsor of the legislation and chairman of the Health and Human Services Committee, said in a press release that he was proud that advocates, businesses, patients, legislative leaders, and the governor’s office “worked very cooperatively to smooth out the bumps and create a proposal that works for all the stakeholders.”

“We all wanted to do this in a way that is safe, keeps revenue in Rhode Island, and is as fair and equitable as we can possibly make it. The amended bill is a collaborative effort to address concerns about protecting medical use, ensuring fair governance and recognizing that we cannot make this transition without taking action to make whole the communities and individuals who have been punished for decades under prohibition.” – Miller in a statement

The legislation would allow Rhode Island adults aged 21-and-older to sell and possess up to one ounce of cannabis, keep up to 10 ounces in their home, and cultivate up to six cannabis plants at home (including three mature and three immature plants).

Under the measure, the state would license 33 retailers across six zones and impose a 10% excise tax, along with the state’s 7% sales tax, and a 3% tax which would go to municipalities. Licensing would begin on August 1 with sales commencing on December 1.

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Cannabis Legalization Proposal Heading to Rhode Island Legislative Committees This Week

5/17/2022

Adult-use cannabis legislation is set for committee votes this week in Rhode Island, the Providence Journal reports. The bills have not yet been made public but previous versions would allow up to 33 retail licenses distributed through six zones, including the state’s current nine medical cannabis dispensaries.

While Democratic Gov. Dan McKee supports the reforms, his Executive Counsel Clair Richards has raised constitutional concerns over provisions in the previous proposal about how members of the three-member cannabis control commission would be appointed and removed. Under the state’s constitution, the governor has the sole power to appoint “all members of any commission” but the bill calls for the House Speaker and Senate President to provide nominees to the governor and requires Senate approval to remove them.

“Such pervasive control by the legislature impermissibly enlarges its constitutional role at the expense of the executive.” – Richards in a letter to lawmakers via the Journal

In a joint statement, a spokesman for the House and Senate defended those provisions, arguing the bill and its appointment processes “is consistent with Rhode Island’s separation-of-powers principles and the law flowing from the Rhode Island Supreme Court.” The statement pointed to the state’s Redevelopment District Commission and Judicial Nominating Commission as evidence of the process’s constitutionality.

McKee ascended to the governorship after Gina Raimondo joined the administration of President Joe Biden (D) as commerce secretary. Raimondo had been a proponent of legalization as governor and had included it in her 2020 Executive Budget, but was rebuffed by lawmakers. McKee supports a system of privately-run dispensaries, which contrasts with Raimondo who backed a plan for state-run cannabis shops.

Lawmakers are putting the finishing touches on the bills before they will be made public and head to committees.

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Rhode Island Awards Five New Medical Cannabis Dispensary Licenses

11/01/2021

Rhode Island officials on Friday awarded five new medical cannabis licenses for new dispensaries, WPRI reports. The lottery selected five companies from geographic zones in order to spread out the new providers.

RMI Compassion Center won the license for Woonsocket, along with Pinnacle Compassion Center in Central Falls, Green Wave Compassion Center in Foster, Solar Therapeutics in Cranston, and Plant Based Compassionate Care in South Kingstown. None of those municipalities currently have a dispensary as there are currently just three in the state in Providence, Warwick, and Portsmouth, the report says.

The lottery for a sixth zone was not included in Friday’s announcement due to an ongoing lawsuit by Atlas Enterprises LLC, which was disqualified because its application is for Newport which has banned cannabis operations. Atlas is appealing the disqualification and the lottery for the zone will take place once the case is adjudicated.

Another applicant was disqualified after admitting to paying a bribe to former Fall River, Massachusetts Mayor Jasiel Correia. In September, Correia was sentenced to six years in prison for extorting cannabis companies in exchange for non-opposition letters to allow cannabis companies to open shop in Fall River.

The lottery comes two-and-a-half years after lawmakers approved expanding the number of dispensaries in Rhode Island from three to nine. Lawmakers are also close to a deal to legalize cannabis for adults in the state, the report says, noting that the Senate passed the reforms earlier this year but it competed with Gov. Dan McKee’s proposal, and now key officials from the House, Senate, and Governor’s Office are negotiating a compromise.

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Rhode Island Lawmakers Nearing Deal on Cannabis Legalization

10/22/2021

The executive branch and legislative negotiators in Rhode Island are close to reaching a deal on regulating adult cannabis use, but some sticking points remain, according to a WPRI report. At a “Media and Politics Cafe” on the campus of Johnson & Wales, Sen. Josh Miller, a leading sponsor of an adult-use bill passed by the Senate in June, revealed the 150 retail locations initially proposed had been trimmed down significantly.

“We’re probably down to more in the 30, 40 range,” Miller said, admitting he had to “dodge and weave” around reporters’ questions due to the ongoing negotiations.

Miller did mention a social equity component would be included in any licensing agreement. Additionally, all sides have agreed to include expungement provisions in any proposed legislation. Lastly, the negotiators have agreed to put a temporary moratorium on new cultivation sites, bowing to pressure from producers, who say they already do not have enough legal retail locations to sell their crops, the report says.

“As you know the governor supports recreational cannabis and his team has been actively working with our partners in the General Assembly on a bill that is equitable and benefits Rhode Island,” said Gov. Dan McKee’s press secretary, Alana O’Hare, in an email to WPRI. “The conversations are ongoing, and we are hopeful that an agreement can be reached.”

Miller says the two sides are mostly split on who will oversee adult-use cannabis licensing and regulation. Miller’s bill calls for the formation of an entirely new regulatory body, while another proposal puts the program in the hands of the Department of Business. McKee, House, and Senate representatives have all put forward different retail shop numbers throughout the negotiations. Taxation numbers hover around 20%, but some work remains to decide how tax dollars are split between localities and the state. Finally, after their efforts failed in the regular session, leaders hinted at a possible special session in the Fall, although this is unlikely, but not off the table, the report says.

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Rhode Island Senate Votes to Legalize Cannabis, House Vote Expected in Special Session

6/24/2021

The Rhode Island Senate on Tuesday voted 29-9 to legalize cannabis in the state, moving the legislation on to the state House of Representatives, WPRI reports. The bill includes a 20% tax on adult-use cannabis sales and allows for home cultivation.

It marks the first time either chamber of the Rhode Island Senate voted on a broad cannabis legalization proposal.

House Speaker Joe Shekarchi (D) has already indicated that the body will not consider a cannabis legalization bill before the current session ends, but it could consider it in a special session in the fall, according to the report.

The bill did not include provisions submitted by Gov. Dan McKee, including removing language creating an independent Cannabis Control Commission. McKee called the creation of the commission “the main thing” he and lawmakers disagree on citing his opposition to “adding additional costs to government.” McKee proposed tasking the Department of Business Regulation’s Office of Cannabis Regulation overseeing the industry.

McKee took over as governor in March after his predecessor, Gina Raimondo, was confirmed as commerce secretary in President Joe Biden’s Administration. McKee had served as Raimondo’s lieutenant governor. In January, McKee said he thought it was time legalization happened in the state after opposing the reforms as recently as 2019.

Rhode Island and New Hampshire are the last two New England states that have not passed adult-use cannabis law reforms. On Tuesday Connecticut Gov. Ned Lamont (D) signed the lawmaker-approved bill, portions of which—including adult-use and possession—take effect July 1.

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Rhode Island Seeks to Revoke Medical Cannabis Operator’s License Over Bribery

6/01/2021

Officials in Rhode Island are seeking to revoke the medical cannabis cultivation license of Colorado Ave LLC, which is owned by Brian Bairos – who agreed to pay a bribe to disgraced former Fall River, Massachusetts Mayor Jasiel Correia, WPRI reports. Correia was found guilty earlier this month of extorting cannabis businesses and fraud.

Bairos testified in Correia’s trial that he paid the $150,00 bribe, in return for a non-opposition letter to open a dispensary in the city, in a combination of cash and more than 12 pounds of cannabis to a Correia associate named Tony Costa. Bairos was given immunity in exchange for his testimony.

In a show-cause order issued in February, the Rhode Island Department of Business Regulation (DBR) said Colorado Ave failed to ensure the agency access to its real-time camera feeds and failed to appropriately track and trace plants and inventory. The order also says the revocation is due to Colorado Ave’s “failure to uphold its fitness to engage in the medical marijuana industry by Mr. Bairos’ participating in Giving Tree’s extortion.” Giving Tree was the name of his proposed cannabis dispensary in Fall River.

The case has also ensnared David Brayton, a Rhode Island man who testified at Correia’s trial that he paid a $100,000 bribe to the former mayor for a non-opposition letter to open a dispensary. Brayton has successfully applied for the Rhode Island license lottery for his plan to open a dispensary, Faded Minds, in Providence, the report says.

Brian Hodge, a spokesperson for the DBR, said the agency is aware of Brayton’s links to the Fall River scandal and that regulators reserve “the right to disqualify applicants based on new information” but could not “comment on ongoing investigatory matters.”

Following his conviction, Corriea claimed he would “have a great day of vindication and eventually the real truth will come out” adding that “there were no facts that were brought forward [and] no overwhelming evidence.” He has promised to appeal.

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Rhode Island Delays Medical Cannabis Licensing Lottery

5/28/2021

Rhode Island announced it will delay its long-awaited lottery to choose six more medical cannabis licensees, WPRI reports. The holding pattern comes after one of the applicants appealed their exclusion from the list of qualified applicants and is expected to remain in place until after August.

Complicating the issue further, the state’s plan to have a third-party administrator conduct the lottery failed after finding zero interest. Instead, the lottery will now be conducted by the Rhode Island Department of Business Regulation.

The license finalists were chosen by state regulators after a four-month review of 45 applications filed by 25 applicants — 41 made it to the lottery stage.

“We’re hopeful that we’ll have a final determination sometime in the month of July, which will allow us to flip the switch and turn the lights on for a lottery hopefully that first week in August.” — Matthew Santacroce, head of the Office of Cannabis Regulation, via WPRI

According to public record request documents, Atlas Enterprises Inc. filed the appeal that caused the delay. According to the report, the “notice of denial” says Atlas was denied entry into the lottery for not submitting proper zoning approval documents from Newport, Rhode Island, where there is a moratorium on cannabis retail operations. Additionally, the documents revealed that Atlas did not disclose that their Board Chair, former state Rep. Robert Flaherty, was also involved with a second lottery applicant, Ascend Rhode Island Compassion Center.

“Generally speaking, what we were looking for was completeness and demonstrated compliance with local zoning and real estate requirements,” Santacroce told WPRI.

The setback will delay the final licensing of new medical cannabis operators in the state until the final quarter of this year, according to the report. However, Santacroce is optimistic the new centers will open in late 2021 or early 2022, despite the delay.

“Depending on the turnkey readiness of whoever gets picked from the lottery,” he said, “I’m very confident and very hopeful that we’ll have at the very least a couple of these compassion centers opening their doors by the end of the calendar year to our patient population.”

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Workers at Rhode Island Dispensary Join Union

4/08/2021

Workers at Portsmouth, Rhode Island’s Greenleaf Compassionate Care Center on Monday voted to join the United Food and Commercial Workers Local 328. The company is the second cannabis business in the state to join the union, following workers at Ocean State Cultivation Center in Warwick who unanimously ratified their first union contract in October 2020 – but is the first dispensary.

The vote was 21-1.

In a joint statement, Greenleaf’s workers said they were “proud to become a part of the larger momentum being seen by workers to unionize that is taking place within the cannabis industry.”

“We hope that through demonstrating our continued commitment to one another in organizing as workers that we can create some form of lasting change within Greenleaf that allows for better job security and more space for us to actually be heard.” – Greenleaf workers in a statement

Seth Bock, the CEO of Greenleaf, told the Providence Journal that the company respects its employees’ right to unionize.

We at Greenleaf believe that the health and happiness of our employees is at the core of our success, and that fundamental premise has not changed,” Bock said in a statement to the Journal. “As always, we look forward to our continued partnership with all of our valued employees – a partnership that will surely lead to continued success for all.”

Sam Marvin, the union’s director of organizing, said he was unaware of any other union efforts at other dispensaries in Providence and Warwick but called the vote “really important” as state lawmakers are considering legislation to legalize cannabis for adult use in the state.

Gov. Daniel McKee (D), who took over last month following the confirmation of Gina Raimondo to lead the U.S. Department of Commerce, said in January that “it’s time” for the state to legalize cannabis.

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Rhode Island Cannabis Legalization Bill Includes 20% Tax Rate

3/11/2021

A Rhode Island Senate legalization proposal would legalize cannabis production and distribution across the state, allow Rhode Islanders to possess up to an ounce of cannabis, and establish a 20 percent tax on the industry, WPRI News 12 reports. The proposal is sponsored by Senate Health & Human Services Committee Chairman Joshua Miller (D) and Senate Majority Leader Michael McCaffrey (D).

“Cannabis legalization is a monumental shift in public policy that effectively creates a new economy. We want to ensure as many Rhode Islanders as possible have the opportunity to participate in this new economy.” — Sen. Miller, in a statement

According to the report, Senate President Dominick Ruggerio had directed the two lawmakers to craft the bill, which marked a shift by Ruggerio who previously had only supported medical cannabis.

The Senate bill would set up a five-member Cannabis Control Commission responsible for issuing licenses and crafting market regulations. Towns would automatically get three licenses with additional licenses available for larger cities. Communities would be allowed to block cannabis sales only by a voter referendum. Under the plan, adult-use cannabis would be taxed at a total of 20 percent, with three percent going to local governments, a seven percent sales tax, and a new ten percent tax just for cannabis. Fees for retail stores would be $20,000 and cultivating license costs would range from $20,000 to $100,000. The bill also includes mechanisms for expunging cannabis arrests.

The House appears ambivalent on the topic. House leader Joe Shekarchi has not taken a position but “is open to listening to all stakeholders and the public at House committee hearings,” a spokesperson said.

Gov. Dan McKee, a legalization supporter, will also introduce his own adult-use structure via a budget proposal on Thursday, potentially setting up negotiations that could see Rhode Island soon joining the list of legal cannabis states.

Rhode Island is in the midst of expanding its medical cannabis system from three shops to a total of nine. These shops would potentially be first in line for adult-use licenses.

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New Rhode Island Gov. Supports Cannabis Legalization

3/03/2021

Democrat Daniel McKee was sworn in as Rhode Island governor yesterday after the U.S. Senate confirmed Gina Raimondo as President Joe Biden’s Commerce Secretary. McKee had previously served as Raimondo’s lieutenant governor.

Raimondo had been a proponent of legalization as Rhode Island governor, including it in her 2020 Executive Budget, but was rebuffed by lawmakers. Her new role as commerce secretary includes, among other things, promoting economic growth, job creation, and balanced economic development, which would all be enhanced by federal cannabis policy reforms.

As recently as 2019, McKee said he did not support cannabis legalization; however, JD Supra reports that in January he said that “it’s time [legalization] happens.” According to the report, McKee supports a system of privately-run dispensaries, a contrast to his predecessor who backed a plan for state-run cannabis shops.

The state is also facing a $275 million budget gap, which could press lawmakers to enact the reforms this session. House Speaker Joseph Shekarchi (D) has indicated that the chamber is “very close” to having majority support for the reforms and that he is “absolutely” open to the idea, according to JD Supra. Senate Majority Leader Michael McCaffrey (D), called for legalization in January.

“The time has come to legalize adult cannabis use. We have studied this issue extensively, and we can incorporate the practices we’ve learned from other states.” – McCaffrey via JD Supra

If lawmakers were to approve cannabis legalization this session – JD Supra notes that most major legislation is not passed in Rhode Island until the General Assembly is set to adjourn in June – sales wouldn’t likely commence until mid-2022 at the earliest.

In a January interview with ABC6, state Rep. Karen Alzate (D) put the chances of passing the reforms this session at 95%.

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