Nearly four months after the legalization of the recreational use of cannabis, the fledgling industry in Rhode Island is being stifled by delays in appointing a regulatory board and fierce competition from out of state, some observers say.
Under the Rhode Island Cannabis Act signed into law last May, the Cannabis Control Commission will be an independent panel of three individuals overseeing “the regulation, licensing and control of adult use and medical cannabis.”
Sen. Joshua Miller, D-Cranston, who sponsored the Senate bill, says he initially had hoped to have a commission created by the end of the 2022 legislative session. But a year later, he’s still waiting.
“I can say I am disappointed with the current timeline,” Miller told Providence Business News.
Without the commission, none of the 24 new licenses can be issued and there can’t be any changes to current regulations. Only nine locations that had previously held medical marijuana dispensary licenses can sell legalized recreational marijuana.
The delay is also putting on hold the social equity program.
“Those who are interested in the social equity licenses are very anxious to get going and want to apply,” Miller said.
Miller says he is not sure what is causing the delay. According to the act, House Speaker K. Joseph Shekarchi is responsible for submitting names of three potential appointees for Gov. Daniel J. McKee to consider. McKee can choose one of those people and make two of his own appointments, which are then forwarded to the Senate for confirmation.
Shekarchi spokesperson Larry Berman says the speaker submitted three names last June, and the act says McKee had 40 days from the day the law went into effect to submit his candidates to the Senate. That hasn’t happened.
Before the names could be submitted, a background check must be done on each candidate. Olivia DaRocha, McKee’s press secretary, said the check is an “extensive process involving coordination with the state police” and that the governor’s selections will be announced once the background check is completed.
DaRocha did not respond to requests for more details, such as if McKee has selected any appointees.
In the meantime, the growth of the industry has been curbed. The R.I. Office of Cannabis Regulation, led by Matthew Santacroce, is handling the licensing and oversight of the businesses. He said the office plans on “advising and supporting the commission during this rulemaking while continuing to carry out these duties.”
Many of the cities and towns that had hoped to increase revenue through a local sales tax are left waiting.
And even current license holders are affected by the delay. The Cannabis Control Commission will set regulations for the advertising and marketing of the products. But until it’s established, cultivators and dispensaries are limited in their advertising opportunities, said Joseph Pakuris, co-owner of the dispensary Mother Earth Wellness Inc. in Pawtucket.
“Sales have been steady,” he said. “But if we could advertise, I think our sales would double.”
Without the ability to advertise the products, Rhode Island cannabis businesses continue to trail behind ones located in Massachusetts, which are advertised on billboards along the state border. And despite recreational marijuana becoming legal months ago, many residents in the Ocean State are still unaware of this change.
“There’s a big part of the state of Rhode Island that doesn’t realize that cannabis is legal because there’s been no advertising,” Pakuris said. “Massachusetts advertises their cannabis businesses on our billboards, so we would like the same.”
Kudos to Dan McKee for dragging his feet on this. The last thing we need is a bunch of potheads running around RI.