Should the state use a lottery system to award new retail cannabis licenses?

The R.I. Cannabis Control Commission on Jan. 8 released draft rules and regulations governing the state’s adult-use cannabis industry.

The unanimous vote started a minimum 30-day public comment period. The rules and regulations include new packaging and labeling requirements, a hybrid randomized selection process for licensing, updated quality assurance testing and details on the Social Equity Assistance Program.

Facing the Holidays with a Cancer Diagnosis

The holidays are often painted as a time of joy, tradition, and togetherness. But for…

Learn More

State law allows the commission to initially grant 24 new retail recreational licenses, half of which are reserved for social-equity licenses and worker-owned cooperatives. There will be four licenses available in each of six geographic zones across the state. Under state law, more licenses could eventually be approved.

Licensing will work under a “hybrid” model, whereby applicants must first be vetted and approved before being selected to enter a lottery that will be held in each of six designated geographic zones.

- Advertisement -

Commissioner Robert Jacquard supported the new regulations but said he prefers a merit-based selection process for new licenses.

Regular applicants will have to pay a $7,500 fee and if awarded, $30,000 a year for annual licenses. The first six social-equity licenses the state awards will have both the initial application fee as well as the annual $30,000 retail license fee waived for the first year but must pay $7,500 to reestablish the retail license in the second year, $15,000 in year three, $ 22,000 in year four and $30,000 in year five and every subsequent year.

Should the state use a lottery system to award new retail cannabis licenses?