Rhode Island's Marijuana Cultivators In Limbo, Slow Retail Rollout Puts Businesses At Risk

As Rhode Island senators consider nominees for the new Cannabis Control Commission, licensed marijuana cultivators are urging decision-makers to expedite the process of opening more marijuana stores. They argue that the limited number of outlets is causing a decline in demand for their products, putting their businesses at risk and resulting in layoffs.

Despite the state's legalization of recreational marijuana over a year ago, the slow implementation of new dispensaries has left cultivators without sufficient avenues to sell their products.

"The cultivators have already seen a 30-40% layoff rate. We don't have the outlets to sell to," said Nick Lacroix, president of Warwick-based Mediflor Organics, emphasizing the urgent need for more dispensaries.

The Slow Rollout 

Rhode Island's current law allows for the eventual opening of 24 more marijuana shops, in addition to the existing nine. However, until the Cannabis Control Commission and its advisory board are fully operational and establish a mechanism for giving out more licenses, no new stores are expected to open until late 2024 or possibly even 2025, reported the Green Market Report.

This leaves cultivators, who employ approximately 400 workers, with only the seven existing outlets. Moreover, five of them also cultivate their own marijuana for medical and recreational sales, further limiting opportunities for external cultivators to distribute their products.

Consequences For Growers

The slow rollout has led to significant job losses within the community, with an estimated 150 jobs already eliminated in the first wave of layoffs. Peter Kasabian of Loud LLC expressed concerns about the uncertain future. "That's the first round of layoffs. Who knows when the next round is coming."

Cultivators argue that without an increase in the number of licensed dispensaries, they will struggle to sustain their businesses, leading to further layoffs and reduced production. Karen Ballou, the owner of Cultivating RI, stressed the urgency of the situation. "It's happening so slow that people just can't sustain it. Sales have been really off, and we were forced to lay off a lot of our staff. We're forced to slow down production."

Delayed Commission Appointments

The delay in opening more dispensaries can be attributed, in part, to the recent appointment of nominees to the Cannabis Control Commission. Although Rhode Island legalized recreational marijuana more than a year ago, Gov. Dan McKee nominated three appointees just last month. The nominees, who include former State Rep. Robert Jacquard, Kimberly Ahern, and personal injury attorney Layi Oduyingbo, have unanimously advanced through the Senate Judiciary Committee and are expected to face a full Senate vote soon, per Marijuana Moment.

Advocacy for Social Equity: Activists and members of the marijuana industry stress the importance of prioritizing social equity in the selection of commissioners. Andre Dev, a founding member of the PVD Flowers cooperative, said there are numerous barriers faced by working-class Rhode Islanders and people of color who want to get into the marijuana industry. The state's legalization law defines a "social equity" applicant as someone disproportionately impacted by past marijuana laws, aiming to provide opportunities for those affected by criminal enforcement and residing in disproportionately impacted areas.

Photo: Courtesy Of Michael Denning On Unsplash