Rhode Island Cannabis Legalization

Medical

The medical cannabis law was amended in 2009 to allow for regulated compassion centers that can distribute medical cannabis to qualified patients.

In October 2016 the emergency regulations were issued to get a new category of private cannabis growers, called cultivators, up and running as quickly as possible. In 2016, lawmakers also added PTSD and in 2018, autism to the list of qualifying conditions for medical cannabis:

  • cancer or the treatment of this condition
  • post-traumatic stress disorder (PTSD)
  • glaucoma or the treatment of this condition
  • positive status for human immunodeficiency virus (HIV) or the treatment of this condition
  • acquired immune deficiency syndrome (AIDS) or the treatment of this condition
  • hepatitis C or the treatment of this condition
  • autism
  • a chronic or debilitating disease or medical condition or its treatment that produces one or more of the following:
    • cachexia or wasting syndrome
    • severe, debilitating, chronic pain
    • severe nausea
    • seizures, including but not limited to those characteristic of epilepsy
    • severe and persistent muscle spasms, including but not limited to those characteristic of multiple sclerosis or Crohn’s disease
    • agitation related to Alzheimer’s disease

Once registered, a medical marijuana patient is permitted to cultivate up to 12 cannabis plants, provided each plant has a valid “tag” issued by the Department of Business Regulation, to appoint a caregiver to cultivate and provide medical cannabis or to purchase cannabis products from state-licensed dispensaries known as compassion centers.

Cultivator licenses are divided into the following categories:

  • Micro-license 0 – 2,500 sq. ft.
  • Class A 2,500 – 5000 sq. ft.
  • Class B 5,001 – 10,000 sq. ft.
  • Class C 10,001 – 15,000 sq. ft.
  • Class D 15,001 – 20,000 sq. ft.

In 2019, Governor signs budget tripling the number of compassion centers licenses from three to nine.

Recreational

On May 25th, 2022, Rhode Island officially became the 19th state in the U.S. to legalize adult-use cannabis when Gov. Dan McKee signed into law a bill passed by state lawmakers the day before.

An application for a hybrid cannabis cultivator license may be submitted by a licensed medical cannabis cultivator or licensed vertically integrated compassion center. Each operator will be required to pay a $125,000 fee, which will go into a social equity fund. The state allows up to 33 adult-use stores, subject to a 10% state cannabis excise tax, and a 3% local cannabis excise tax, in addition to the 7% state sales tax.

Rhode Island Cannabis Market

Medical

In 2023, there were seven vertically integrated businesses, 60 licensed growers (including 15 micro licenses) and about 10,000 registered patients.

Medical cannabis sales reached $38 million in 2018 up from $25 million in 2017, increased to $60 million in 2019 and totaled $80 and $87 million in 2020 and 2021 accordingly. 2022 and 2023 brought in around $66 and $33 million. There were seven vertically integrated businesses, 60 licensed growers (including 15 micro licenses) and about 10,000 registered patients.

Recreational

Following the act, 7 compassion centers in Rhode Island were approved to sell and 56 cultivators and 5 compassion centers to produce recreational cannabis.

On December 1, 2022, Rhode Island began the sale of cannabis to adult-use consumers and as of November 2023, the sales totaled about $70 million. 11 months of 2023 brought in nearly $100 million in total sales, including medical and recreational cannabis.

Rhode Island’s adult-use sales are expected to reach $300 million by the fourth year, according to MJBizDaily projections.


Rhode Island Cannabis Market Infographics


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Rhode Island cannabis

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