Rhode Island’s cannabis regulators have yet to announce the date when they will start to accept applications for 24 new retail licenses, but they have now opened up the initial screening process for those seeking to obtain one of the state’s six social equity licenses.
The state’s Cannabis Control Commission on Friday launched its online certification portal for prospective business owners to certify that they are qualified for one of the specialty licenses meant for those who were adversely impacted by the War on Drugs, including residents in five municipalities identified as social equity zones.
“Today is more than the start of an application process — it is the continuation of a system that places safety, equity, and transparency at the center of Rhode Island’s cannabis market,” Commission Chairperson Kimberly Ahern said in a statement. “We are committed to ensuring that this industry not only grows responsibly but also delivers meaningful opportunities to the people and communities who were disproportionately impacted by past prohibition.”
The certification process administered by Massachusetts-based Creative Services, Inc. is open through Sept. 29, according to the commission’s announcement.
Prospective applicants will first have to fill an online form on the commission’s website, before receiving a link from Creative Services to the online certification portal — such forms are available through Sept. 24.
From there, applicants must provide documentation proving their status.
Regulations approved by the commission earlier in the year require that applicants have at least 51% ownership and control by individuals directly impacted by past cannabis laws or economic disparities or a minimum of 10 full time employees that meet the same criteria.
Qualifying factors include convictions for nonviolent cannabis offenses or residency in disproportionately impacted areas — which can be determined by federal poverty level, unemployment rate, the number of students in a free school lunch program, and historic arrest rates by census tract.
A preliminary analysis presented to the commission last October found that three of the state’s 39 municipalities met the criteria for a social equity zone set in Rhode Island’s 2022 law: Central Falls, Providence and Woonsocket. Some census tracts in Pawtucket and Newport also met the criteria.
Documentation that can be submitted to prove eligibility include articles of incorporation, proof of residency and payroll registers.
Under the 2022 act that legalized recreational cannabis, the commission can offer 24 new licenses to retailers, with six reserved for social equity applicants and another six reserved for worker-owned cooperatives.
Licenses must be spread throughout six geographic zones, with a maximum of four stores per zone.
Regulations enacted in May call for a hybrid selection process in which applicants would first be screened based on qualifications before being placed in a lottery.
All prospective retailers would pay an application fee of $7,500 and a yearly $30,000 licensing fee. But the application fee will be waived for the first year for approved social equity applicants.
To keep things fair, regulators plan to randomly select which applicants will get a license.
Applicants cannot change their corporate structure after receiving Social Equity Applicant Status Certification unless they obtain a variance from the Cannabis Control Commission.
This story was originally published by the Rhode Island Current.
