“Let us puff, puff and pass the bills.”
By Christopher Shea of Rhode Island Current
More than 30 industry leaders, legislators and advocates gathered to celebrate the first legal marijuana sales anniversary. They enjoyed infused drinks, charcuterie, and Drake’s blaring beats.
The celebration on December 1, held in Rolfe Square in Cranston, also provided a platform for participants to discuss what they would like to see change in the second year: namely that all Rhode Islanders will have the opportunity to participate in this burgeoning industry.
Rep. David Morales (a Providence Democrat) told the crowd that “the details are what matter”.
Morales spoke as one of three Democratic legislators who addressed the crowd. Enrique Sanchez, a Providence representative, and Leonela Felix, a Pawtucket representative, also spoke, but by video.
Since April, marijuana advocates have been looking through Rhode Island’s 115 page law to find loopholes that they feel could create an unfair environment. They presented four ideas during the celebration held on Friday. Two of these proposals require the approval of the General Assembly, the Governor and the Cannabis Control Commission.
- Social equity applicants must meet narrow qualifications
- Tax revenue can be used to expand the Social Equity Fund
- Charge waivers can be activated
- Provisional licenses
Narrowing definitions
The first of four proposals is to revise the definition of what it means to be a “social equity applicant”–something the state’s Cannabis Control Commission, which formed last June, also hopes to narrow down in 2024.
Rhode Island’s Cannabis Law caps the number of retail licenses at 24. Six of those licenses are reserved to applicants who are socially responsible, while the other six are reserved exclusively for worker-owned co-ops.
The social equity statute includes many definitions of what constitutes an area or ownership that is disproportionately affected. Morales explained to the crowd that the applicants need only have 51 percent of their employees be ex-drug offenders, or reside in an affected community.
Morales stated that the 51 percent requirement was not acceptable. “We do not want to create a loophole where an out-of state capitalist with a lot of wealth who is now moving to Ocean State can hire poor Black and Brown people and call themselves a social justice applicant,” Morales explained. “That’s not going to work–so, we’re removing that language from the existing law.”
Morales, along with other advocates, want the second line of the original legislation removed: applicants may apply for a license to promote “economic empowerment” in areas that are disproportionately affected.
Blake Johnson, an associate attorney at Green Path Legal in Barrington, a cannabis-focused firm with a female-only practice, said: “If Jeff Bezos gave $10,000 to the Southside Cultural Center that would have an economic impact.” “Let’s blow, puff, and pass the bills.”
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Funding for Social Equity Applicants
Advocates propose also that the General Assembly passes legislation allocating roughly half the tax revenue generated by recreational cannabis to the state fund that assists social equity applicants.
Zara Salmon of Providence’s plant-lifestyle company CRAVEInfused said in a text message that she was aiming for a 50 percent tax revenue to start, just in case negotiations were unsuccessful.
According to the Department of Business Regulation of the State, recreational cannabis sales started off slow and then surpassed medial cannabis in the spring. The total recreational sales between December 1, 2022 and October 30, 2023 were $62.9 millions.
Rhode Island Department of Business Regulation
DBR spokesperson Matthew Touchette stated in an email sent on Monday that the Department of Revenue of California projects a total recreational sale of $76 million by the end of fiscal year, June 30, 2024.
Touchette said this would translate into roughly $13 millions in state tax revenues and $2.3 for local municipalities, where dispensaries were located. As of December 2017, there were seven licensed recreational dispensaries in Rhode Island, including one in Central Falls and one in each of Exeter, Providence and Pawtucket. Two are located in Warwick.
The state’s Social Equity Fund does not receive any of these tax revenues. The fund is instead funded by a $125,000 initial fee for a license and any fines that retailers may have to pay. The fund had $1.013,500 as of November 3.
Salmon explained to the crowd that this money was meant to support six businesses focused on social equity. It costs between $2 and $3 million to launch a cannabis-related business.
The group called on legislators to allow prospective dispensary owners to access the social equity fund as a way to obtain startup capital.
Most major banks will not lend to dispensary owners because cannabis is illegal at the federal level. Eve Santana is the founder of High Beautiful a lifestyle brand that promotes the positives associated with marijuana.
She said, “The cannabis sector faces a funding dilemma.” “That’s why we ask the government to give us their money.”
Felix, Morales, and Sanchez all support the two legislative proposals. Morales informed the crowd that legislation is likely to be filed by the House in mid-February. He told Rhode Island Current that the identity of the main sponsor has yet to be determined.
Lower fees means more
What other ways can social equity applicants save money? Get rid of licensing fees
The fees can be extremely expensive. Retail operations in Rhode Island must pay $125,000 as a licensing fee to the Department of Business Regulation to be able to sell recreational adult-use marijuana.
Salmon stated that the fee would not be waived if an equity license was approved today.
Provide provisional licenses
Cannabis advocates asked the Cannabis Control Commission (CCC) to create new types of licenses, especially for those who reside in communities or were previously incarcerated.
They want the government to issue “provisional licences” which would allow it to conduct thorough inspections of a business plan before issuing an official license.
Johnson stated that “in order to start a company, people need to have all the pieces in place.”
Originally published in the Rhode Island Current.
Officials in Rhode Island Update Marijuana Sale Numbers Back to 2022 In Order To Correct For “Human Error”
Photo by Philip Steffan.
The article Rhode Island Marijuana industry advocates detail four main changes they want to be implemented next year to the legalization law first appeared on Marijuana Moment.
