PROVIDENCE – The Cannabis Control Commission on Friday submitted a report to Gov. Daniel J. McKee and the General Assembly on the findings of a recent audit of the state’s cultivator license moratorium that showed cultivators had a combined 5 million grams of unused inventory through 2023.
The statutorily required report was based on the results of the audit presented April 12 by Cindy Miller, senior economic and policy analyst with the R.I. Office of Cannabis Regulation. She said the state's 65 cultivator licensees had excess capacity to serve the current market, with 97,500 square feet of cultivation space not being utilized, representing 24% of total space. There was a 584% increase in wholesale production in 2023, resulting in a 57% increase in cannabis flower and trim held on reserve.
Chairwoman Kim Ahern on Friday called the report "helpful information" and said that another audit will be complied one year after final regulations are approved and another 24 licenses become available.
And once those rules are finalized, "we will be in a new moratorium," she added, in reference to state law that mandates a two-year pause once the commission issues its final regulations.
According to the “seed to sale” tracking system used by the OCR; total retail sales grew 24% in 2023. The office predicts a 2% growth of monthly sales through 2024.
Last year the R.I. Department of Revenue estimated adult use sales of cannabis would reach $76 million this fiscal year, with more than $15 million in total state and local tax revenue.
However, the audit said that the predicted demand of adult recreational use had "been overestimated.”
Meanwhile, Massachusetts recently reported that last December the state broke its monthly record of cannabis sales, resulting in $114 million in revenue. Total sales have eclipsed $1 billion for three straight years.
Adina
Birnbaum, CEO of Talaria, LLC, called on the CCC to do what it could to fast track new licenses for dispensaries to help reduce state cultivators' excess inventory.
“We really need more stores in Rhode Island,” she said.
The CCC also provided an update on the Social Equity Assistance Program and the fund- paid for with cannabis sales taxes-being created to steer financial resources to applicants perceived to have been disproportionately harmed by the prohibition of cannabis before legalization.
Ahern said an advisory subcommittee has been meeting monthly to discuss ways to implement the statute and related fund, which requires 12
licenses split evenly between social equity applicants and worker co-ops. Allowable uses
includes grants to pay for expenses, job training and workforce development, mentoring and technical assistance, reducing fees or instituting "restorative justice" programs, among others.
Ahern noted as an example that Connecticut created its own $50 million bond program for "social equity" applicants and has already been distributing money.
"That work is important,” she said, adding that if Rhode Island residents wish to submit public comment on the social equity program before regulations are finalized, “Now is the time."
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com
