A court order that blocked state regulators from awarding cannabis retail licenses may come to an end soon, a Rhode Island federal judge indicated Wednesday.
U.S. District Judge Melissa DuBose wrote in an order that she would dissolve the preliminary injunction she issued April 8 now that the Rhode Island Cannabis Act no longer requires all retail license holders to be majority-owned by Rhode Island residents.
“The Cannabis Act, as revised, removed the language this court concluded violated the U.S. Constitution’s Dormant Commerce Clause,” she wrote.
But that outcome hinges on the 1st U.S. Circuit Court of Appeals in Boston sending the lawsuits over Rhode Island’s former residency requirement for recreational cannabis licenses back to DuBose’s Providence courtroom.
Tim Rondeau, a spokesperson for the Rhode Island Office of Attorney General, said Thursday that state attorneys have requested a stay in all appellate proceedings in order for the District Court to issue an indicative ruling.
Twenty recreational cannabis retail licenses have remained on hold since DuBose’s April 8 ruling, leaving about 100 applicants in limbo — many of whom have continued paying rent on storefronts they still cannot open.
The Cannabis Control Commission appealed DuBose’s injunction on April 14. But after Gov. Dan McKee signed a pair of bills repealing the challenged residency requirement, lawyers from the Attorney General’s Office representing the state filed a motion to dissolve DuBose’s preliminary injunction arguing it was now moot.
The legal challenges began in May 2024, when California cannabis entrepreneur Justyna Jensen sued the Cannabis Control Commission in U.S. District Court in Providence, arguing Rhode Island’s residency requirement for licenses under the state’s 2022 Cannabis Act violated interstate commerce protection.
Under the new law, applicants are defined as a person or a business who has “made an application for issuance of a license or certificate to own or engage in a cannabis business.”
The legislation also removes any Rhode Island references in the eligibility criteria for applying for one of six social equity licenses, which are reserved for those adversely affected by the war on drugs. Those businesses must still be majority owned by one or more people who can show they were disproportionally impacted by criminal enforcement of past prohibitions, including being arrested or having a family member who was.
Charon Rose, a spokesperson for the Cannabis Control Commission, said in a text message that staff for the regulatory panel will provide an update on the case when it meets at 1 p.m. Friday. The agenda also includes next steps the commission will take in the licensing process, including refunds for any voided applications from the state’s first go-around.
Originally published on rhodeislandcurrent.com, part of the BLOX Digital Content Exchange.
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