Main steps in short:
- Understand regulatory and legal requirements. Do market research.
- Decide the type of cannabis business. Choose a location. Check local zoning regulations.
- Develop a solid business plan. Secure financing.
- Prepare the required documents. Pay application fee. Submit application.
- Register your business as an employer and a tax payer.
- Keep track of your ongoing compliance requirements.
- License renewal.
Research the laws and regulations governing adult-use and medical-use cannabis for more information about the regulatory requirements for licensure where you want to start your business.
Rhode Island Cannabis Legalization
Cannabis in Rhode Island is legal for medical and adult use. Rhode Island legalized medical cannabis through legislation in 2006, becoming the 11th state to do so. In 2022, The Rhode Island Cannabis Act was signed into law, making the state the 19th in the country to legalize the possession, home cultivation and sale of small amounts of cannabis for recreational purposes.
On April 11, 2025, the state approved final regulations for its medical and adult use cannabis industry. The Rhode Island Cannabis Control Commission (CCC) is the state agency responsible for overseeing the regulation, licensing, enforcement and control of medical and recreational cannabis in the State of Rhode Island.
There are 24 adult-use cannabis retail business licenses available – 4 in each of the six geographic areas of the state with each geographic zone having one social equity licensee and a worker-owned cooperative licensee. In September 2025, the CCC opened the application period until December 29 for these 24 adult-use cannabis retail licenses.
Cannabis License Types Available in Rhode Island
Allows to sell cannabis to adult use consumers.
An adult use cannabis retail license reserved for social equity applicants. Before applying for this license, the applicant must first be certified as an approved social equity applicant by the CCC through the process outlined in Section 1.11 of the Cannabis Establishment Applications, Licensing and Renewals.
An adult use cannabis retail license reserved for workers’ cooperatives.
Allows to obtain, manufacture, process and package cannabis and cannabis products as well as deliver or transfer cannabis products to other cannabis establishments.
A not-for-profit organization allowed to acquire, possess, cultivate, manufacture, deliver, transfer, transport, supply or dispense cannabis to registered qualifying patients and their registered primary caregivers.
Allows to sell both adult use cannabis to consumers aged 21 and over, and medical cannabis to registered qualifying patients and their registered primary caregivers.
Medical Marijuana Cultivator: allows to acquire, possess, manufacture, cultivate, deliver or transfer medical cannabis.
Hybrid Cannabis Cultivator: allows to cultivate, manufacture and process cannabis for both adult use and medical use.
Cannabis Cultivator: allows to acquire, possess, cultivate, deliver or transfer adult use cannabis.
A third-party analytical testing laboratory licensed by the Department of Health to collect and test samples of cannabis.
For 2 years from the date of the promulgation of the final regulations, the CCC may not issue new adult use cannabis cultivator licenses. However, this does not apply to the granting of hybrid cannabis cultivator licenses to existing medical marijuana cultivators.
Applications for a cannabis license can be submitted only when the application period is open – such periods will be announced by the CCC.
Cannabis Business Plan
Application requirements include a business plan showing:
- Applicant’s experience in operating a business.
- Description of amount and source of equity, debt and operating capital for the proposed cannabis establishment.
- Start-up funding and long-term financial feasibility plan.
- Financial oversight and compliance plan.
- Detailed timeline for starting operations.
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Information required to be included in the applications for cannabis cultivation, manufacturing or retail licenses is not limited to:
- The applicant’s legal name, certificate of incorporation or organization in Rhode Island or certificate of authority to transact business in Rhode Island, articles of incorporation or organization, bylaws or operating agreement and corporation organization chart.
- A business plan.
- A Security and Safety Plan.
- An Operations Manual.
- For the proposed physical location of the establishment:
- The physical location of the proposed cannabis establishment by lot number, street address and mailing address.
- Evidence of compliance with local zoning laws.
- Evidence that the physical location is not located within 500 feet of the property line of a preexisting public or private school.
- A draft floor plan.
- Description of measures taken to ensure that cannabis and cannabis products in the establishment will not be visible from the street.
- Documentation evidencing either ownership of property or lease agreement with owner of property which permits the operation of a cannabis establishment on the property.
- A disclosure and certification as to owners and other key persons/interest holders.
- Disclosure if any key person/interest holder has a material financial interest or control in another cannabis establishment.
- An organization chart and schedule of remuneration.
- Name and personal information of the establishment’s compliance officer.
- Disclosure and description of any cannabis program licenses or registrations ever held by the applicant and/or interest holders/key persons as well as disclosure of any withdrawals, denials, suspensions, revocations or other regulatory actions taken regarding those licenses or registrations, if such exist.
- An affidavit of compliance with filing all required tax returns and paying all taxes due to the State of Rhode Island in accordance with R.I. Gen. Laws Chapter 5-76.
Certain key persons of cannabis establishments must also undergo a criminal background check.
More details can be found in the Cannabis Establishment Applications, Licensing and Renewals regulations, section 1.3.
The licensing process varies by licensing type. Each license type has additional information, specific to the license type, which must be submitted to the CCC.
Application fee: $7,500
Annual license fee: $30,000
Valid for: 1 year
Licensing Process:
- Submit a complete application provided by the CCC with all the required information. Each application must be submitted along with the application fee of $7,500.
- The CCC will review the application and determine whether it is “qualified”.
- If the application is deemed “qualified”, the applicant will be notified by the CCC. This shall be equivalent to provisional approval.
Cannabis retail sales applicants who have been provisionally approved must meet the following requirements before they receive the final license:
- Payment of the annual license fee of $30,000.
- A current Certificate of Occupancy for the cannabis establishment.
- Updated interest holder/key person disclosure.
- Evidence of completion of divestiture plan, if necessary.
- Evidence that the provisionally approved applicant has obtained a cannabis seed-to-sale tracking system and all equipment and software required to implement tracking.
- An attestation by a bona fide labor organization stating that the applicant has entered into and will abide by the terms of a labor peace agreement.
Initially, only 6 social equity retail licenses will be issued during an open application period announced by the CCC. In the future, the CCC may choose to expand the number of available licenses.
For the first 6 licenses, the application fee will be waived. For subsequent license applications, the application fee shall be $7,500. The annual license fee of $30,000 will be waived for the first year of operation for the initial 6 social equity retail licensees. All subsequent social equity retail licensees shall pay the annual license fee including the first year, unless it is waived or reduced in accordance with the Social Equity Assistance Program and Fund by the CCC.
The license will be valid for one year.
Licensing process:
- Submit a complete application to the CCC with the required application fee, if applicable.
- The CCC will forward a copy of the application to the city or town in which the proposed cannabis establishment is planned to be located.
- Within 90 days, the CCC will decide whether the application is complete and if it is, the applicant will be notified that their application has been deemed “qualified”. This shall be equivalent to provisional approval.
Social equity retail license applicants who have been provisionally approved must meet the following requirements before they receive the final license:
- Payment of the annual license fee of $30,000, if applicable.
- A current Certification of Occupancy for the cannabis establishment.
- An updated interest holder/key person disclosure.
- Evidence of completion of a divestiture plan, if necessary.
- Evidence that the provisionally approved applicant has obtained a cannabis seed-to-sale tracking system and all equipment and software required to implement tracking.
- The CCC will proceed to carry out a random drawing to select licensees for each geographic zone from the pool of qualified applicants.
- Before the final license is issued, the CCC will inspect the applicant’s premises.
- If the inspection is satisfactory, the final license will be issued.
Application fee: $7,500
Annual license fee: $30,000
Valid for: 1 year.
Initially, only 6 workers’ cooperative cannabis retail sales licenses will be issued during an open application period announced by the CCC. In the future, the CCC may choose to expand the number of available licenses.
Additional information required to be submitted with the application:
- For the business plan:
- A 3 year projected income statement.
- Number and category description of full-time equivalent employees and associated payroll expenses required for staffing.
- Profit sharing or a profit allocation plan.
- For the Operations Manual, the staffing plan must include job descriptions, employment contracts and volunteer agreements, if applicable.
Licensing process:
- Submit a complete application to the CCC with the required application fee, if applicable.
- The CCC will forward a copy of the application to the city or town in which the proposed cannabis establishment is planned to be located.
- Within 90 days, the CCC will decide whether the application is complete and if it is, the applicant will be notified that their application has been deemed “qualified”. This shall be equivalent to provisional approval.
Workers’ Cooperative Cannabis Retail Sales license applicants who have been provisionally approved must meet the following requirements before they receive the final license:
- Payment of the annual license fee of $30,000.
- A current Certification of Occupancy for the cannabis establishment.
- An updated interest holder/key person disclosure.
- Evidence of completion of a divestiture plan, if necessary.
- Evidence that the provisionally approved applicant has obtained a cannabis seed-to-sale tracking system and all equipment and software required to implement tracking.
- An attestation by a bona fide labor organization stating that the applicant has entered into and will abide by the terms of a labor peace agreement.
- The CCC will proceed to carry out a random drawing to select licensees for each geographic zone from the pool of qualified applicants.
- Before the final license is issued, the CCC will inspect the applicant’s premises.
- If the inspection is satisfactory, the final license will be issued.
Application fee: $2,000
Annual license fee: $4,500
Valid for: 1 year.
Additional information required to be submitted with the application includes:
- A plan for distinguishing between sales of finished cannabis products at wholesale based on designation for medical or adult use sales, if applicable.
- Evidence of compliance with the Minimum Requirements for Departmental Approval of Volatile Solvent-Based Hydrocarbon Extraction Operations, if applicable.
Licensing process:
- Submit a complete application provided by the CCC along with the required application fee.
- The CCC will evaluate whether the application is complete and approve or deny the application.
- The Applicant will be notified if their application has been approved and must then meet the prerequisites to issuance of the final license.
Prerequisites that must be met before the final license is issued include:
- Payment of the annual license fee of $4,500.
- A description of the final physical location of the cannabis establishment.
- Evidence that the final physical location of the cannabis establishment is not located within 500 feet of the property line of a preexisting public or private school.
- A current Certificate of Occupancy for the cannabis establishment.
- Evidence of approval from the state fire marshal’s office for all forms of manufacturing that use a heat source or flammable solvent.
- Evidence of ownership of property or agreement by owner of property to allow operation of a cannabis product manufacturer on the property.
- A final diagram of the cannabis establishment with the location where cannabis will be stored, processed and packaged, as well as where security alarms and cameras and surveillance recording storage will be located.
- The legal name, current address and date of birth of any interest holders, employees and agents of the cannabis product manufacturer.
- The CCC will carry out an inspection of the premises.
- If the inspection is satisfactory, the final license will be issued and the licensee may commence operations.
Application fee: $10,000
Annual license fee: $500,000
Valid for: 1 year.
Additional information required to be submitted with the application includes:
- Non-profit corporation compliance including a certificate of incorporation or certificate of authority, copies of articles of incorporation and bylaws and documentation of recognition as a tax-exempt organization by the US Internal Revenue Service, if applicable.
- For the business plan:
- Applicant’s experience operating a non-profit organization and experience operating a medical cannabis business, as applicable.
- Services for hardship patients and charity care.
- For the Operations Manual, information regarding:
- Patient and personal data privacy.
- Patient confidentiality, education, counseling and outreach.
- Assuring steady supply for patients.
- For the physical location of the cannabis establishment:
- There may be one additional location proposed for the secure cultivation of medical cannabis.
- Evidence that it will not be located within 1,000 feet of the property line of a preexisting public or private school.
- A certification regarding nonprofit compliance including all certifications and information required in the regulations.
- The compassion center and its interest holders/key persons may not have any material financial interest or control in another Rhode Island cannabis establishment license.
Licensing process:
- Submit a complete application provided by the CCC along with the required application fee.
- The CCC will review the application and determine whether it is “qualified”.
- If the application is deemed “qualified”, the applicant will be notified by the CCC. This shall be equivalent to provisional approval.
Compassion Center license applicants who have been provisionally approved must meet the following requirements before they receive the final license:
- Payment of the annual fee of $500,000.
- Evidence of full compliance with local zoning laws.
- A current Certification of Occupancy for the cannabis establishment.
- An updated interest holder/key person disclosure.
- Evidence of completion of a divestiture plan, if necessary.
- Evidence that the provisionally approved applicant has obtained a cannabis seed-to-sale tracking system and all equipment and software required to implement tracking.
- The CCC will proceed to carry out a random drawing to select licensees for each zone from the pool of qualified applicants.
- Before the final license is issued, the CCC will inspect the applicant’s premises.
- If the inspection is satisfactory, the final license will be issued.
Annual authorization fee: $30,000
Additional information required to be submitted with the application include:
- The applicant’s legal name, mailing address, phone numbers and Compassion Center license number.
- The physical location of the cannabis establishment by lot number, street address and mailing address.
- Square footage of the cannabis establishment retail facility and square footage of the licensed cultivation facility, if applicable.
- Name and contact information of the applicant’s compliance officer and, if a different person, the designated individual responsible for maintenance of the Medical Marijuana Program (MMP) service levels and compliance with existing MMP program requirements, rules and regulations.
- Policies and procedures to maintain a sufficient quantity and variety of medical cannabis products.
- Description and visual rendering of the plan to physically separate sales areas for adult use and medical use.
- A plan and description of the methods, protocols and practices that will be used to physically separate medical and adult use inventory, storage and customer-facing floor and display areas for available products.
- A description of the plan to prioritize patient and caregiver identification verification and physical entry into retail areas if a situation arises where the number of individuals allowed to enter must be restricted.
- Updated standard operating procedures for both adult use and medical cannabis service.
- An updated version of home delivery plan for adult use retail sales, if the Compassion Center plans to provide such a service for adult use cannabis products as well.
- An attestation from a bona fide labor organization stating that the applicant meets the requirements relating to Labor Peace Agreements.
- If the applicant plans to transition from not-for-profit to for-profit, supporting documentation including timetables for such transition, copies of proposed articles of merger and other relevant corporate documents.
- An affidavit of compliance with filing all required tax returns and paying all taxes due to the State of Rhode island.
Licensing process:
- Submit a complete application provided by the CCC.
- The CCC will forward a copy of the application to the city or town in which the cannabis establishment is planned to be located.
- Within 90 days, the CCC will determine whether to approve or deny the application.
- The applicant will be notified if their application has been approved and must then meet the prerequisites to issuance of the final license.
Prerequisites required to be met before the final license is issued:
- Payment of the required authorization fee of $30,000.
- Evidence of completion of a divestiture plan, if necessary.
- The CCC will carry out an inspection of the premises.
- If the inspection is satisfactory, the final license will be issued and the licensee may commence operations.
A vertically integrated compassion center authorized to cultivate cannabis may apply for a hybrid cultivation license in the following manner:
- Submit an application to the CCC with the application fee of $3,500.
- Maintain a Compassion Center license with hybrid retail authorization in good standing in accordance with the Cannabis Act, the Medical Marijuana Act and the final regulations.
- Make good faith efforts to ensure that adult use cannabis cultivation has no significant adverse effect on the medical cannabis program and patient needs.
Medical
All medical marijuana cultivators must register their location with the Department of Public Safety.
| License Class | Facility Size | Annual License Fee |
| Micro-license | 0-2,500 sq. ft. | $4,500 |
| Class A | 0-5,000 sq. ft. | $10,000 |
| Class B | 5,001-10,000 sq. ft. | $20,000 |
Hybrid
Eligibility criteria for transitioning from a medical cultivator to a hybrid cultivator:
- Be in good standing as a medical cannabis cultivator.
- Make good faith efforts to ensure that adult use cannabis cultivation operation does not have a significant adverse effect on the medical cannabis program and patient needs.
The hybrid cannabis cultivator licensee shall submit an updated floor plan and satisfy other requirements including a final inspection by the CCC.
After transition, the medical cannabis cultivator licensee’s facility-size license class will be translated to the equivalent canopy-size license class as detailed below:
| License Class | Canopy Size | Annual License Fee |
| Micro-license | 0-2,500 sq. ft. | $4,500 |
| Class A | 0-5,000 sq. ft. | $10,000 |
| Class B | 5,001-10,000 sq. ft. | $20,000 |
Adult Use
Application fee: $4,500
Annual license fees:
| License Class | Facility Size | Annual License Fee |
| Micro-license | 0-2,500 sq. ft. | $4,500 |
| Class A | 0-5,000 sq. ft. | $10,000 |
| Class B | 5,001-10,000 sq. ft. | $20,000 |
Valid for: 1 year
Licensing process:
- Submit a complete application provided by the CCC along with the required application fee of $4,500. If an applicant wishes to submit an application for a proposed canopy size or facility size greater than 10,000 sq. ft., they must contact the CCC in advance.
- The CCC will evaluate the application and decide whether it should approve or deny it.
- If the application is approved, the applicant should meet the prerequisites before the final license is issued.
- Before the final license is issued, the CCC will carry out an inspection of the premises.
- If the inspection is satisfactory, the final license will be issued.
Prerequisites that must be met before the final license is issued include:
- Payment of the relevant annual license fee.
- A description of the final physical location of the cultivation premises.
- Evidence of compliance with local zoning laws.
- A current Certificate of Occupancy.
- A final diagram of the cannabis establishment with the location where cannabis will be stored, processed and packaged, as well as where security alarms and cameras and surveillance recording storage will be located.
- The legal name, current address and date of birth of any interest holders, employees and agents of the cultivator.
Cannabis testing laboratories are licensed by Rhode Island Department of Health (RIDOH) and RIDOH’s testing regulations are applied to cannabis, established in the Licensing Analytical Laboratories for Sampling and Testing Cannabis.
Annual license fee: $5,000
The license expires on the 31st of December each year. Annual license renewal application shall be submitted on forms provided by RIDOH.
Information required to be submitted with the application includes:
- The applicant’s legal name, certificate of incorporation or certificate of authority, articles of incorporation and bylaws and documentation of recognition as a tax-exempt organization by the US Internal Revenue Service, if applicable.
- A business plan including scope of activities, budget and resource narratives as well as the timeline for starting operations.
- The proposed physical location for the analytical laboratory by lot number and mailing address along with:
- Evidence of compliance or preliminary determination of compatibility of the location with the local zoning laws.
- A draft diagram of the proposed facilities.
- A description of measures taken to ensure that cannabis at the establishment will not be visible from the street.
- Evidence of ownership of property or agreement by owner of property to allow the operation of an analytical laboratory on the property.
- The legal name, current address and date of birth of each principal officer, director or owner of the analytical laboratory.
- A list of all persons or entities which have a direct or indirect authority over the management or policies of the analytical laboratory.
- A copy of the licensee’s management agreement and list of persons who have an ownership interest in or operational control over the management company, if applicable.
- A list of all persons or business entities which have an ownership interest in the applicant entity, whether direct or indirect.
- If licensed premises or other operational assets will be owned or leased by a different person or entity, their legal name and current address as well as a list of all persons or entities having ownership in such entity, whether direct or indirect.
- Legal names and current addresses of all creditors holding a security interest in the premises or other assets.
- A tax affidavit.
Licensing process:
- Submit a complete application provided by RIDOH.
- RIDOH will evaluate the application and notify the applicant if their application has received preliminary approval.
- If the application has received preliminary approval, the applicant must meet the prerequisites.
The prerequisites that must be met before the final license is issued include:
- The application previously submitted, with updates.
- A description of the final physical location of the analytical laboratory.
- Evidence of compliance of the facility with local zoning laws.
- A current Certificate of Occupancy for the physical address of the analytical laboratory.
- Evidence of divestiture of prohibited material financial interest and control, if necessary.
- Evidence that all directors, managers, officers, agents and employees of the analytical laboratory have applied for a Cannabis Registry Identification Card from the Department of Business Regulation (DBR).
- The laboratory quality assurance plan and procedures manual.
- The applicant must then submit documentation of approval of occupancy from the State Fire Marshall and a copy of all Registry Identification Cards from the DBR to RIDOH.
- The applicant must pay the annual license fee of $5,000.
- RIDOH will also inspect the premises before the license is issued.
- Within 30 days after the licensing requirements have been met, and if the inspection is satisfactory, the applicant will be issued the final license.
Once the final license has been issued, licensees must commence operations within the following time periods, unless there is good cause for why they could not do so:
- Cannabis Retail Sales: 3 months
- Social Equity Retail: 6 months
- Licensed Workers’ Cooperative Cannabis Retail Sales: 3 months
- Cannabis Product Manufacturer: 6 months
- Compassion Center: 3 months
- Hybrid Retailer: 3 months
- Cannabis Cultivator: 6 months
- Cannabis Testing Laboratory: 1 year
- Register your business as an employer and a tax payer.
- Keep track of your ongoing compliance requirements.
Physical security measures, good production practices, packaging, labelling, transport and reporting requirements, taxes and more.
After a cannabis retail or a compassion center final license has been issued, the licensee must apply to the CCC to source inventory. Before starting retail sales, the licensee must schedule and pass an inspection by the CCC.
Annual renewal process includes the payment of the annual license or authorization fee and the submission of a renewal application on forms provided by the CCC before the renewal date of the license or authorization. As part of the renewal process, there shall be an annual inspection.
Licensed cannabis retail establishments and compassion centers must also submit an updated interest holder/key person disclosure and certification. Compassion centers must submit an updated certification of nonprofit compliance.
Licensed cultivators will have to submit the following information with the renewal application:
- The licensee’s legal name.
- Any updates or changes made to the licensee’s bylaws, operating agreement or organizational chart.
- Documentary evidence of the licensed premises, floor plan and canopy.
- Evidence that the physical location of the cannabis establishment is not located within 500 feet of the property line of a preexisting public or private school.
- Description of protocols and measures in place to ensure that cannabis at the establishment is not visible from the street.
- Evidence of property ownership or agreement by owner of property to allow operation of a cannabis cultivator on the property.
- The legal name, current address and date of birth of each interest holder of the licensee.
- A copy of the licensee’s management agreement and list of persons who have an ownership interest in or operational control over the management company, if applicable.
- If licensed premises or other operational assets will be owned or leased by a different person or entity, their legal name and current address as well as a list of all persons or entities having ownership in such entity, whether direct or indirect.
- An affidavit of compliance with filing all required tax returns and paying all taxes due to the State of Rhode Island.
- Up-to-date policies and procedures for handling voluntary and mandatory recalls of cannabis products.
- Policies and procedures to ensure that any outdated, damaged, deteriorated, mislabeled or contaminated cannabis is separated from other cannabis and destroyed.
- The compliance officer’s name.
Cannabis Delivery in Rhode Island
Medical and recreational cannabis can be delivered by licensed cannabis retailers only, provided that there is a home delivery plan approved by the CCC.
Rhode Island Cannabis Taxes
Effective December 1, 2022, the law implements a State Cannabis Excise Tax and a Local Cannabis Excise Tax. When cannabis products are sold by a licensed cannabis retailer to consumers, the cannabis products are subject to the standard 7% Rhode Island Sales and Use Tax, as well as a 10% State Cannabis Excise Tax (applicable to adult-use cannabis only), and a 3% Local Cannabis Excise Tax.
The sales tax is imposed upon the retailer at the rate of 7% of the gross receipts from taxable sales for both recreational and medical cannabis products.
The use tax is imposed at 7% on the storage, use, or consumption of tangible personal property in Rhode Island. Use tax returns are required from every retailer and from every person who purchases property subject to the use tax unless the tax has already been paid to a retailer authorized to collect it.
A surcharge at a rate of 4% is imposed on net patient revenue received each month by a compassion center.
Cannabis Advertising Regulations in Rhode Island
Permitted advertising media include, but are not limited to:
- Online media.
- Broadcast media.
- Print media.
- Outdoor media.
All advertising must include the following:
- The required universal symbol in color.
- The license number of the licensee.
- The statement “For Ages 21+ and medical cannabis patients.”
Any advertisement by a licensee must not:
- Contain deceptive, false or misleading statements.
- Appeal to individual under the age of 21.
- Contain florescent or neon colors.
- Encourage excessive consumption.
- Be displayed within 500 feet of a preexisting public or private K-12 school.
- Be combined with content relating to alcohol, nicotine, tobacco or any other substance.
- Display activities or persons in conditions under the influence of cannabis.
- Display the consumption, use or transfer of cannabis or cannabis products.
- Suggest or imply that cannabis has curative or therapeutic effects.
- Violate any state or federal trademark law or regulation.
Licensees are encouraged to ensure that chosen advertising medium targets an audience of which 85% of the population are reasonably expected to be at least 21 years old.
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