Rhode Island Scrapped a Residency Rule That Triggered 3 Federal Lawsuits
Rhode Island’s Cannabis Control Commission is asking a federal judge to dissolve a court order that has frozen roughly 100 recreational cannabis license applications since April. Gov. Dan McKee signed two bills on June 10, 2026, eliminating the residency requirement that sparked the legal challenge in the first place.
The original 2022 Rhode Island Cannabis Act required that all recreational cannabis retailers be majority-owned by Rhode Island residents. Three separate lawsuits challenged that requirement as unconstitutional. U.S. District Judge Melissa DuBose agreed on April 8, issuing a preliminary injunction that blocked the state from holding a planned May license lottery and stopped regulators from reviewing any applications submitted by the December 29, 2025 deadline.
~100 applications remain in limbo, with many applicants still paying rent on storefronts they cannot yet open.
The new law voids the original application process entirely and starts a fresh one. The Commission has 60 days from the June 10 signing to open a new application process, setting a deadline of August 10, 2026. Commission spokesperson Charon Rose said staff are still planning next steps and are “hopeful that once we get the go-ahead with the appropriate people that we can get the process moving again.”
Social Equity Licenses Got a New Definition, Not a Smaller Scope
The legislation also rewrote the eligibility rules for six social equity licenses, which are reserved for people adversely affected by drug prohibition enforcement. The old rules tied eligibility to Rhode Island residency. The new rules require majority ownership by people who can show they were disproportionately impacted by criminal enforcement of past prohibitions, including being arrested or having a family member who was. Residency is no longer part of the criteria.
State attorneys filed their motion Friday arguing the injunction is now moot. “The goals of this court’s preliminary injunction have now been made permanent by the General Assembly’s legislative action,” they wrote. Judge DuBose has not yet ruled on the motion.
First-round applicants cannot recover rent paid on vacant storefronts, but the new law does allow refunds of any fees paid to the Commission.
What You Can Do Now
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Monitor the federal court docket for Judge Melissa DuBose’s ruling on the Commission’s motion to dissolve the injunction. The case is pending in U.S. District Court for the District of Rhode Island. PACER (pacer.gov) lets anyone search federal court records for free after registration.
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Contact the Rhode Island Cannabis Control Commission at (401) 222-2222 or through their public portal to ask when the new application process will open and what applicants should do now to preserve their place in line.
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Contact your Rhode Island state representative or senator by calling the General Assembly at (401) 222-2000. Ask them to ensure the Commission meets the August 10 deadline for reopening applications and to protect social equity applicants who lost months of rent during the freeze.
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If you are a first-round applicant, request a fee refund directly from the Cannabis Control Commission. The new law explicitly allows this. Document all rent payments made during the freeze period in case future relief legislation is introduced.
Sources
Rhode Island Current: State Moves to Lift Court Order Blocking Pot Shop Licenses
Rhode Island Department of Business Regulation: Cannabis Control Commission
Rhode Island General Assembly: 2022 Rhode Island Cannabis Act Overview