What is commercial cannabis cultivation and processing?

Cannabis cultivation is the process of growing cannabis within a regulated environment for the consumption via a medical or adult-use cannabis program. Generally cultivation refers to the agricultural activities associated with the propagation and growing of cannabis. Cannabis processing is when you manufacture finished cannabis products, packaging of dried flowers or manufacture and package cannabis-based products (i.e. extracts, edibles, and topicals). To be able to produce cannabis and cannabis derived products commercially a specific license is required, requirements depend on the state in which you are locating this business.

How much will I need to spend for a cannabis cultivation license and facility?

The fees for a cannabis cultivation license vary greatly depending on the state in which the facility is to be located. Also facility build out costs vary greatly depending on the type of cannabis cultivation facility (indoor, mixed-light green house, outdoor). Depending on the facility type a cultivation facility can range from 2 million to 20 million dollars.

Is the application for Compassion Centers in Rhode Island open?

Currently the application process for Compassion Centers in Rhode Island is closed. The last issuance of licensure was in November of 2021. It is unlikely that this process will reopen without the expansion of the medical program or the passage of adult-use cannabis in the state.

Can an individual hold ownership or financial interest in more than one Marijuana Establishment license?

No, individuals that qualify as Marijuana Establishment Licensee Interest Holders may not have a material financial interest or control in any other Marijuana Establishment License.

Is cannabis delivery to patients allowed in Rhode Island?

Yes, in 2019 the state regulators issued guidance allowing home delivery. There are specific requirements to be eligible for delivery that require a doctor's note beyond a medical cannabis recommendation.

Rhode Island Cannabis License Solutions

The Rhode Island Cannabis License Experts experienced team will help you to get your Rhode Island cannabis license faster and with an unmatched success rate. Having to repeat your Rhode Island cannabis license application process will set your business back by months and significantly impact your earnings potential. We’ll help you navigate the Rhode Island cannabis license market. We’ll also help you on your path to a Rhode Island cannabis license and much more by booking your free consultation today.

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Rhode Island cannabis license - Market Overview

Approving RI medical cannabis in 2006, Rhode Island (RI) became the 11th state to do so with the passage of SB 710. The first Compassion Center did not open in the state until April 2013, which sparked the beginning of a legal cannabis market in the state. As of December 2021, the Rhode Island medical cannabis program had 18,789 active registered patients and received 678 new patient Rhode Island cannabis license applications in between October and December of 2021. Currently, Rhode Island is one of the few states in the Northeast that hasn’t adopted adult use legalization of cannabis however this is expected to change in 2022. Both SB 2430 and HB 7593 have been introduced and are identical, legalizing and regulating adult use cannabis in Rhode Island. If passed, existing Compassion Centers will have a path to obtain authorization to dispense to adults 21 and over.

Book a free consultation today to learn more about how our Rhode Island Cannabis License Experts can assist you and your team on your path to licensure within the Rhode Island cannabis license market.

Rhode Island cannabis license Requirements, Timelines, and Selection

As mentioned above, despite legalizing medical cannabis, Rhode Island cannabis licenses for Compassion Centers were not issued until 2013 with the first opening its door in April of the same year. Rhode Island only offers two Rhode Island cannabis license types for cannabis businesses which is the Compassion Center license and Rhode Island Cannabis Cultivator License. The Compassion Center Rhode Island cannabis license type allows for the licensee to grow, manufacture, and sell cannabis to registered patients while the Cultivator license specifically allows for the production of marijuana products to be sold at a Compassion Center. Rhode Island last issued Compassion Center licenses in 2020, the Department of Business Regulation announced that six additional Compassion Center licenses would be available. In November of 2021, Rhode Island held a random lottery drawing for the additional Compassion Center licenses issuing five licenses of the approved six. Only the original three Compassion Centers are open at the time of this report, as the 5 additional Rhode Island cannabis licenses have a nine month timeframe to open their doors to registered patients.

Rhode Island cannabis license applicants for both license types are required to submit the following plans as part of the Rhode Island cannabis license application process.

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Rhode Island cannabis license Types
Compassion Center
Active Rhode Island cannabis license	3
Approved licenses	8
Medical Marijuana Cultivator
Active licenses	68
Approved licenses	69
Medical Marijuana Cultivator Tiers
Micro-License 0 - 2,500 sqft	$5,000 annual license fee
Class A 0-5,000 sqft	$20,000 annual license fee
Class B 5,001 - 10,000 sqft	$35,000 annual license fee
Class C 10,001 - 15,000 sqft	$50,000 annual license fee
Class D 15,001 - 20,000 sqft	$80,000 annual license fee

Basic Demographic Information
Resources include the US Census Bureau, City-Data.com, and any additional relevant resources.
Total # of Counties	5
Total # of Cities/Towns	31 towns, 8 cities and 86 special districts
County population in 2019	179,883

Providence

Median Age

$50K

Medial Income

$237K

Median Home Price

$1059/Month

Fair Market Rent

Business Climate

Overall, the majority of the state has embraced the formal legalization of cannabis for medical cannabis and advocates in the state are hopeful that adult use legalization will pass in 2022. Rhode Island cannabis license Applications for Compassion Center licenses as well as Cultivator licenses are not currently being accepted. The most recent Rhode Island cannabis license application process was announced in 2020 and licenses were issued in 2021.

In 2019 Rhode Island was ranked last in CNBC’s top states to do business within, however they jumped to 46th in 2021 due to improving infrastructure in the state.

Rhode Island cannabis license - Financial Requirements

Many States and local jurisdictions require a certain level of liquidity, cash on hand, and /or CPA and/or bank letters. This is to ensure that Rhode Island cannabis license applicants have the financial wherewithal from the licensing process through to the initial 2-5 years of operations. Rhode Island does not have a minimum capital requirement, it does have high costs associated with its annual Rhode Island cannabis licenses. The annual licensing fee for Compassion Centers is $500,000 and ranges between $5,000 - $80,000 for Rhode Island cultivator licenses. Additionally as part of the Rhode Island cannabis license application process, all funding and investors need to be identified.

Financial requirements typically include a minimum amount of liquid cash on hand and/or CPA letter. This is common for most jurisdictions as a mandatory part of the Rhode Island cannabis license application. General minimum requirements for Rhode Island cannabis license applications is a 2-3 year Pro Forma.

Real Estate & Zoning

Rhode Island requires that Compassion Centers and Cultivators locate at least 1,000 ft from schools. Additionally, municipalities can implement further zoning restrictions. Possession of real estate is required during the Rhode Island cannabis license application process and license allocation has been divided by 6 regions within Rhode Island.

For more information on the available Rhode Island cannabis cultivation licenses, how to open a dispensary in Rhode Island, the RI medical cannabis program and much more book your FREE consultation.

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Applying for a Rhode Island cannabis License and unsure where to start?

Currently the Rhode Island cannabis license application period for cannabis licensing in Rhode Island is closed. New Rhode Island cannabis license opportunities will come either through the expansion of the existing medical program or the legalization of adult-use cannabis within the state. Now is the time to get ahead of the process by defining your business. CLE can develop a preliminary business and feasibility plan to help give an understanding of your cannabis business viability within the Rhode Island cannabis license market and give a head start in the Rhode Island cannabis license process.

In order to get started, reach out to one of our regulatory experts today to learn more about Cannabis Business Solutions.