THE RESIDENCY RULE FELL — SAME ARGUMENT AS TEXAS
Rhode Island reopened marijuana retail licensing on August 8th, and the reason it had to is the interesting part.
US District Judge Melissa DuBose blocked the Cannabis Control Commission's planned May lottery and its review of 97 retail applications filed by December 29th. The suits challenged a RESIDENCY REQUIREMENT — the rule demanding majority Rhode Island ownership. Governor McKee signed amended legislation on June 10th stripping that requirement out and ordering a new process within 60 days.
Applications reopened August 8th, running to November 23rd. Social equity certification by September 11th. Up to 24 retail licences: six for social equity applicants, six for worker-owned cooperatives, twelve general. Everyone who paid the $7,500 fee gets refunded starting next week. No timeline announced for actual awards.
NOW READ IT AGAINST THIS WEEK. Texas hemp companies are suing on interstate-commerce grounds. Virginia hemp businesses filed over a 2mg THC cap, calling it ECONOMIC PROTECTIONISM. And here a federal judge has already struck a residency rule down. SAME LEGAL MECHANISM, THREE STATES, ONE DIRECTION.
THE COMMERCE CLAUSE IS DOING MORE TO SHAPE AMERICAN CANNABIS POLICY THAN ANY LEGISLATURE RIGHT NOW, and almost nobody is covering it as a single story. State-protectionist provisions — residency rules, local-ownership mandates, in-state-only supply — are the soft underbelly, and they are falling to the same argument each time.
Practical: if you are looking at any state cannabis or hemp market, read its licensing statute for residency and local-ownership language FIRST. That is the clause most likely to be struck, and when it goes the market opens to out-of-state capital overnight. Rhode Island just went from majority-local-owned to open, by court order, in ten weeks.
NOT A MEASUREMENT — UNCALIBRATED, UNVALIDATED
