Rhode Island Overview
Rhode Island legalized medical marijuana in 2006, becoming one of the earlier states to offer legal medical cannabis. The state’s medical cannabis program allows patients with qualifying conditions to purchase cannabis from licensed dispensaries, called “compassion centers.”
The Department of Business Regulations (DBR) Office of Cannabis Regulation (OCR) legalized adult-use cannabis in May 2022, joining neighboring states in allowing adults 21 and older to purchase cannabis products. Compassion centers (medical dispensaries) were given the chance to add recreational cannabis sales to their business by obtaining a Hybrid Cannabis Retailer license. Those that did began operating in December 2022.
The state is preparing to issue the 24 new adult-use retail licenses through a hybrid process involving both merit-based screening and a lottery system. Applicants will first be screened for their qualifications and readiness to operate, and then a lottery will be used to award licenses in areas with more demand than available slots. The state is also preparing to accept applications for medical cannabis dispensary licenses. The final details, dates, and process has yet to be released by the DBR.
The licensing process has been held up because of delays in completing the necessary regulations. Without the complete regulatory framework in place, the state cannot move forward with any new licenses. Because of this, the information on this page is sourced from currently available Rhode Island cannabis business resources, laws, and industry websites. Final adult-use regulations are anticipated to be released in the near future.
Rhode Island Cannabis License Types
There are six different cannabis business licenses in Rhode Island. Each of these licenses authorizes a variety of activities that form the foundation of the adult-use and medical cannabis markets in RI.
Compassion Center License
Businesses with the compassion center license can engage in a variety of activities related to the production and distribution of medical cannabis. The business activities compassion centers can engage in include:
- Acquiring or buying cannabis from licensed cultivators.
- Dispensing cannabis and cannabis products to medical marijuana patients and caregivers.
- Cultivation of cannabis, including growing, harvesting, and processing.
- Manufacturing cannabis products.
- Delivery and transportation to qualified patients, caregivers, or authorized purchasers
Compassion centers can also apply to become hybrid cannabis retailers, allowing them to sell adult-use cannabis. This is contingent upon paying a $125,000 fee and meeting the requirements for adult-use sales. As hybrid retailers, they can sell up to one ounce of cannabis to adult consumers over the age of 21.
Licensing Fees and Requirements for Compassion Centers
There are multiple licensing fees and required actions that need to be taken to retain a Compassion Center license.
- Initial application fee: $10,000 (non-refundable).
- Licensing fee: $5,000 for initial licensing or $500,000 for renewal.
- Compassion centers must reapply for their license annually, submitting renewal applications at least 60 days prior to expiration. Renewal is dependent on whether the licensed business has demonstrated compliance with state laws, and every applicable regulation.
Adult-Use Retailer License
The adult-use Cannabis Retailer license allows a business to open and operate a dispensary in Rhode Island that sells cannabis for recreational use.
Application & License Renewal Fee: $30,000
Adult-Use Retailer licenses will only be distributed in specific geographic zones within Rhode Island.
Rhode Island’s OCR will be issuing four (4) licenses in each of these six zones, totaling 24 licenses. Within each zone, one (1) license will be reserved for a workers’ cooperative, and one will be reserved for a social equity applicant.
They zones are:
Zone 1: Burrillville, Cumberland, Glocester, North Smithfield, Smithfield, Woonsocket.
Zone 2: Johnston, Lincoln, North Providence, Central Falls, Providence.
Zone 3: Coventry, Foster, Scituate, West Greenwich, West Warwick.
Zone 4: East Greenwich, North Kingstown, Cranston, Warwick.
Zone 5: Charlestown, Exeter, Hopkinton, Narragansett, Richmond, South Kingstown, Westerly.
Zone 6: Barrington, Bristol, Jamestown, Little Compton, Middletown, New Shoreham, Portsmouth, Tiverton, Warren, East Providence, Newport, Pawtucket.
Hybrid Cannabis Retailer License
The hybrid cannabis retailer license allowed compassion centers (medical marijuana dispensaries) to sell adult-use cannabis under specific conditions for one year, starting December 1, 2022, with a fee of $125,000. These were the main conditions determining whether they could operate as hybrid cannabis retailers.
License Conditions:
- Must be in good standing with the OCR and maintain their medical marijuana license.
- Must ensure that adult-use cannabis sales do not negatively impact the medical marijuana program or patient access.
- The center must post a certificate showing they are authorized to sell adult-use cannabis.
Compassion centers that began operating as hybrid cannabis retailers also needed to ensure they were meeting the location requirements.
All adult-use cannabis operations need to be kept separate from medical marijuana operations. This includes inventory and display areas. If this isn’t possible in their current store, hybrid retailers are allowed to open a separate location within the same municipality, as long as it complies with zoning laws and has municipal approval.
Cannabis Cultivator Licenses
Rhode Island currently has cultivation businesses operating with a Medical Cannabis Cultivation license, and Compassion Center licenses. Even though medical cultivators and compassion centers are currently supplying both the medical and adult-use market, any future application windows are expected to accommodate the adult-use market only.
Generally speaking, the Cannabis Cultivator license authorizes various cultivation and processing activities for the medical and adult-use cannabis markets. Cultivators can only sell cannabis and cannabis products to licensed entities (not directly to consumers).
Application & Licensing Fees: Cultivation application fees in Rhode Island have ranged around $5,000 to $20,000 depending on the size and scope of the cultivation operation. When considering your cannabis business financing, It’s best to check the latest updates from the OCR for the most accurate fees when a new application window is announced.
Previous cultivation licenses have been broken up into five different classes which authorize different amounts of canopy space. Each Class has a different licensing fee:
Micro-License: 0 to 2,500 sq. ft. – $5,000 annual license fee.
Class A: 0 to 5,000 sq. ft. – $20,000 annual license fee.
Class B: 5,001 to 10,000 sq. ft. – $35,000 annual license fee.
Class C: 10,001 to 15,000 sq. ft. – $50,000 annual license fee.
Class D: 15,001to 20,000 sq. ft. – $80,000 annual license fee.
Any future cannabis cultivator license holders will only be authorized to cultivate using a canopy space that is less than 10,000 square feet. Be sure to refer to the DBR and OCR websites for the latest information about marijuana cultivation laws in Rhode Island.
Cannabis Product Manufacturer or Wholesaler License
A Cannabis Product Manufacturer or Wholesaler is authorized to purchase cannabis from licensed cultivators, process it, and sell or transfer cannabis products to other licensed entities, but not directly to consumers. All cannabis products must be tested by a licensed laboratory before they can be sold to retailers.
The final regulations are still being drafted for adult-use licenses and the rules surrounding wholesale cannabis in Rhode Island. More information specific to this license is expected to be released in the near future.
Cannabis Testing Laboratories
Rhode Island Cannabis testing Laboratories conduct tests to ensure cannabis products are safe, and ready to be sold to customers at retail stores. Testing labs are also required to engage in a variety of other activities, like identifying cannabinoid profiles and detecting contaminants such as pesticides, herbicides, metals, and solvents. Testing is done on all cannabis products, including pressed, extraction-based, and infused.
No cannabis or cannabis products can be sold to customers unless they successfully pass testing conducted by a licensed lab. Laboratories are also authorized to transport and store cannabis but they cannot sell or transfer cannabis directly to consumers.
Application & Licensing Fees: The application fee for a Rhode Island cannabis testing license is $5,000. There are no further licensing fees that follow.
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Frequently Asked Questions
How Do I Open a Dispensary in Rhode Island?
To open a dispensary in Rhode Island, you will need an adult-use retailer license. This license can be obtained by completing and submitting a comprehensive application during an open application window. The Rhode Island Office of Cannabis Regulation is responsible for announcing when the window will open, how long it will be open for, and specific details about application requirements and fees.
How Do I Become a Licensed Cultivator in Rhode Island?
You can become a licensed cultivator of adult-use cannabis in Rhode Island by submitting an application and obtaining a license. Those who are interested in applying for a license will need to wait until the Department of Business Regulations and Office of Cannabis Regulation release the final marijuana cultivation laws in Rhode Island, and announce the application window dates, requirements, and fees. If you’re planning on applying for a license, you will need to ensure you have sufficient funds to operationalize a cultivation business.
What Types of Cannabis Licenses are Available in Rhode Island?
There are a variety of adult-use cannabis licenses expected to be available in Rhode Island during the application window that is anticipated to open in late 2024 or early 2025. The licenses are: Adult-Use Retailer, Cannabis Cultivator, Cannabis Product Manufacturer or Wholesaler (wholesale cannabis in Rhode Island), and Cannabis Testing Laboratory (cannabis testing license).
Is Cannabis Legal in Rhode Island?
The Rhode Island Cannabis Act allows adults 21 and older to have up to one ounce (28g) of cannabis in public or up to 10 ounces (280g) at home, cultivate three mature plants, and purchase cannabis from licensed retailers.
How Many Recreational Dispensaries are in Rhode Island?
There are currently seven (7) retailers licensed to sell cannabis for recreational use in Rhode Island. The amount of licensed retailers will increase following the adult-use retail licensing window which is expected to open in late 2024 or early 2025.
How Much Does it Cost to Start a Dispensary in Rhode Island?
Starting a dispensary in Rhode Island will cost at least $250,000. This minimum cost includes a variety of factors including licensing, acquiring property, building out a complaint storefront, purchasing inventory, and more. Be sure to consider cannabis business financing when considering whether to open a dispensary.
