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Rhode Island Marijuana Business License Lottery Blocked By Federal Judge Amid Challenge To Residency Rules

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“Knowing that the Act faced legal challenges … the CCC went ahead with its plan to implement the Act and its licensing scheme. The resulting fallout will therefore be self-executing.”

By Christopher Shea, Rhode Island Currant

Almost 100 applicants competing 20 new cannabis retail licenses were to be issued by lottery May has been in limbo since a federal judge’s order this week halted the plan.

U.S. District Court Judge Melissa DuBose on Wednesday issued a preliminary injunction against the Rhode Island Cannabis Control Board. The commission is a defendant in three federal lawsuits filed by out-of-state employers over the state’s residency requirement for retail licenses.

DuBose’s order blocks regulators from holding a license lottery or even continuing to review and review retail license applications submitted to the commission until Dec. 29, 2025.

“It’s very frustrating right now,” Jason Calderon, a grower who applied for a retail license in North Kingstown, said in an interview. “This certainly could have been avoided. All we’ve done now is give existing monopolies more time to become monopolies.”

Commission spokeswoman Charon Rose said Friday that regulators were aware of the ruling and were reviewing the implications for the adult retail use licensing program.

“At this time, the commission is not in a position to provide a definitive timeline,” he said in an email to the Rhode Island Current. “Additional guidance will be provided as it becomes available.”

Legal challenges began in May 2024, California cannabis entrepreneur Justyna Jensen sue The Cannabis Control Commission in U.S. District Court in Providence argued that Rhode Island’s residency requirement violated the state’s commercial protections under the state’s Cannabis Act of 2022.

Jensen filed similar lawsuits in other states, including California and New York.

Jensen stated in his initial lawsuit that he intended to become a majority owner of a social equity business, a specialty license reserved for those affected by the war on drugs.

John Kenney, a Florida resident, filed a second federal lawsuit against the Cannabis Control Commission in May 2024 also challenging the residency requirement. Justin Palmore of California filed a third lawsuit on similar grounds on November 24, 2025.

None of the defendants were among the 97 companies vying for a Rhode Island license following the state’s call for applications late last year.

Passed by state lawmakers in 2022, the Rhode Island Cannabis Act called for 24 new retail stores across the state, with six licenses reserved for social equity applicants and another six for employee-owned cooperative stores.

Not all license types received applications in each of the six geographic areas, which allowed regulators to limit the maximum number of licenses to 20 statewide.

Out-of-state investors and ownership are permitted under the law, but a majority—51 percent—of a cannabis company must be owned by a Rhode Island resident.

DuBose dismissed Jensen and Kenney’s suits in February 2025, finding the complaints premature because state regulators had not finalized the rules governing Rhode Island’s retail licenses. The regulations were issued in May last year.

But the cases were revived last November by the 1st U.S. Circuit Court of Appeals in Boston, which ordered DuBose to issue rulings on the merits at least 45 days before the date the Cannabis Control Commission plans to issue retail licenses.

The deadline set by the Commission for the licenses planned in October would be granted in the second quarter of 2026, in May.

Did the state waste time?

The state argued in its legal filings that the residency requirement gives regulators power, jurisdiction and oversight over all retail licensees.

But DuBose eventually found that Rhode Island’s residency requirement was not well suited to advance the state’s interests. It also found that the plaintiffs would suffer irreparable harm because the commission agreed it would not authorize the 24 additional licenses allowed under state law.

The state also tried to get the plaintiffs’ licenses to be considered at the 11th hour. DuBose said the state had plenty of time to make changes to its rules.

“Knowing that the Act faced legal challenges in this Court, the CCC proceeded with its plan to implement the Act and its licensing scheme,” DuBose. he wrote. “The resulting fall will be purely self-inflicted.”

It’s the same line that has attorney Allan Fung, a former Republican Cranston mayor and congressional and gubernatorial candidate representing several retail applicants, questioning why the state didn’t act sooner to avoid the license freeze.

“It’s disappointing that the state didn’t fix the statute and fix these issues sooner, or find a compromise with these three plaintiffs, before people put their life savings at risk,” Fung said in a text message to the Rhode Island Current. “The industry cannot wait any longer.”

Licensing has certainly been slow for cannabis retailers.

It was more than a year after the state legalized recreational cannabis before a three-member commission charged with regulating the industry was unveiled in June 2023. The commission had to hire staff to write proposals and review rules adopted in other states. Rhode Island’s rules governing retail cannabis were finally approved in May 2025. Chairman Kim Ahern stepped down last October to become attorney general, and Gov. Dan McKee (D) has yet to name a successor.

In recent months, the remaining two commissioners considered slowing down the process further Staggering the draw of 20 licenses, instead of giving them all at once. No final decision was made at the last meeting held on March 13.

“It’s always been something the whole time,” Calderon said. “Now it’s this new hurdle.”

That hurdle means many applicants have been paying rent in their storefronts for months waiting to see if they’ll be selected for the license lottery.

“My very frustrated clients have invested tens to hundreds of thousands of dollars to follow a complicated set of rules at the state and local level only to be swept under the rug at the eleventh hour,” Fung said.

Calderon is a little better off financially, as he said the deal in place for the proposed store in North Kingstown doesn’t require rent to be paid until June.

“Obviously that’s going to come and go without a store,” he said. “I’ll probably lose the location because I won’t be able to cover and hold while the state figures out what the next plan is going to be.”

The regulations require that each application secure a location, including zoning approval from the city or town where the store is to be located. Andre Dev, founder of the Community Cannabis Network of Rhode Island, rules that acts as an incubator for many future working cooperatives.

“A lot of other states only require a fee and you don’t have to have your business ready,” he said in an interview. “Most of these applicants could not open the doors because there was no ready test.”

Dev applauded the fact that applicants were able to get those approvals on time after a three-month application window, which left the court dismayed that they never even filed in Rhode Island.

“Somehow their rights are more important than those of us who have put in the time and effort to do all this,” Dev said. “It’s up to the board to sort this out in a way that causes the least harm to people.”

DuBose suggested in his ruling that the state could refund applicants who decide it’s not worth the wait or transfer current applications to a hypothetical new process.

Both houses of the Rhode Island General Assembly have pending bills to remove the residency requirement. Legislation Sponsored by Representative Scott Slater, a Providence Democrat, the House Committee on Corporations heard it on March 12, where it was held for further scrutiny, standard practice for the bill’s first review.

“Obviously we’re going to have to go through something to fix that,” Slater said in an interview. “We need to make sure this doesn’t happen again. We definitely need to open more stores.”

Dev asked the commission to issue emergency rules within 30 days, removing the mandated language and establishing temporary application procedures consistent with the court’s ruling, noting that the state’s cannabis law declares all provisions severable.

“They have the power to deal with it,” he said.

The Cannabis Control Board is scheduled to meet on Friday, April 17 at 2:00 p.m.

This story was first published by the Rhode Island Currant.

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Lighting science and advanced cultivation to take center stage at Dutch cannabis research tour

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April 11, 2026

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The joint MCPIR and Cultivation for Compounds research tour is returning to its regular position on the calendar. On June 8, before GreenTech Amsterdam opens at RAI, two cannabis research consortia from the Netherlands will host a one-day medicinal cannabis event at their research sites.

The morning program runs at MCPIR in Bleiswijk, and in the afternoon it moves to CfC’s Honselersdijk facility. Lunch is provided, and RAI Amsterdam bus transportation is available for participants traveling from the city.

Sonny Moerenhout, founder of Cultivators consultancy, has been organizing the event and will be one of the guest speakers. “MCPIR and CfC do the same kind of work, and to outsiders they might look like competitors,” he says. “But this event is about showing what Dutch horticulture is doing for cannabis. It’s better to do it together than separately.” Cultivators have also recently launched the Leafy Hydroponics Consortium, where infrastructure is being upgraded. LED lights, screens and high-pressure fog are being integrated into the setup. Sonny noted that the consortium had conducted tests with the existing configuration before switching to the new one, and that the improvement of the climate system was continuing as part of a multi-year program.

© Andrea Di Pastena | MMJDaily.com

With years of cannabis experience and knowledge, and now the consortium’s research expertise, Sonny says he brings the latest in advanced cultivation techniques. “Cannabis cultivation is moving incredibly fast, with price pressure on growers keeping pace with it. It’s critical to show growers how to meet the challenges with knowledge and information from the world’s horticultural hub.” Besides Sonny, at the MCPIR event, Mexx Holweg, PhD from Wageningen University, will also be coming up to talk about lighting. Sonny says the addition is aimed at bringing more breeders and licensed producers into the conversation. “With Mexx, we can bring even more breeders and LPs together for interactions with a focus on high-tech growth.”

The audience at the June 8 event typically includes medicinal cannabis producers, technology providers and scientific collaborators from across Europe and beyond. Registration is done directly through MCPIR and CfC; the organizers can be contacted at this address (email protected)

GreenTech Amsterdam will take place from June 9th to 11th at the RAI.

For more information:
Cultivators
(email protected)
crops.nl

Delphi










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How a trafficking scheme triggered price compression in Germany

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April 10, 2026

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The thread connecting the Erva Daninha operation to the current price compression in the Portuguese cannabis export market does not begin in Lisbon or Berlin.

According to an industry source with direct knowledge of the scheme, the criminal network that would eventually lead to a sector-wide regulatory crackdown allegedly operated through a mechanism that exploited the loosest link in Portugal’s export chain. Some non-EU countries are said to have issued import permits, which were used by European operators with export permits on the Portuguese side, who sent these documents to Infarmed for approval and shipment of the product. The Portuguese authorities finally called their counterparts from the countries in question to verify the documentation, the paperwork was not completed. The main actors, the source says, cashed in and left. “The worst thing is that Portugal was seen as the epicenter of pharmaceutical production in the world. They lost their reputation.”

Investigators determined that the criminal organization, aware of flaws and weaknesses in Portugal’s cannabis export inspection and control system, bought pharmaceutical companies and created authorized wholesale and export entities, then used false documentation and certificates to ship thousands of kilos to illegal markets. Europe and Africa.On May 20, 2025, the National Anti-Drug Trafficking Unit of the Judicial Police carried out 64 search and seizure orders from the north to the south of the country and on the island of Madeira, arresting several suspects. The operation was called Erva Daninha.

Legitimate operators were careful to distinguish themselves from the actors they were investigating. Nuno Martens from Takodana He said he welcomed the attack. “I don’t understand why people are afraid of this. It’s a good thing that the PJ is doing these raids. If there are things that need to be investigated, that’s good.” The real challenges of the market were soon to materialize.

the conclusion
In the months that followed, several licenses were revoked. Infarmed tightened oversight and added new paperwork requirements, creating an ever-changing regulatory framework that made scaling, exports, and day-to-day operations significantly more difficult. It all startedAs one Portuguese producer said, when Infarmed began to inspect the company more closely May police raid.

One processor’s journey shows how the frozen product eventually became a pricing weapon. According to the source, the companies whose licenses were revoked had between 10 and 14 tons in inventory. Initially written off as a loss, the tide quickly turned when Infarmed reinstated those licenses and lots were released. According to the source, the operators did not want that product anymore, it was already registered as a loss, so the logical conclusion was to remove it as soon as possible. This is how significant amounts of cannabis flowed into Germany at one euro per gram, forcing prices down.

According to market data, by autumn 2025, GACP-certified high-THC flower in Germany was already between €0.75 and €2.30 per gram, while EU-GMP-certified material commanded a clear premium of €2.15 to €3.55 per gram. By the spring of 2026, prices had fallen further. High-THC GACP flower ranged from €0.60 to €2.50 per gram, while EU-GMP high-THC flower softened to €2.00 to €3.48.

Reclaiming reputation
The reputational damage had already spread beyond the prices. Grower active in Portugal said MMJ Daily The trust issues created by the raid exacerbated everything that followed. “They had certain certificates, but they thought they were authorized and they made movements that were not there.” Now when operators want to structure deals through Portugal, the answer from international partners is: Except for Portugal. Malta’s medical cannabis business grew by 1,000% last year.

In early April 2026, at least eight more cannabis operators were removed from Infarmed’s listings, in what analysts described as an unprecedented drop in all. license categories. Whether these departures reflect non-renewal of administration, business failure or the ongoing effects of the 2024 freeze is not yet entirely clear.

A sign of recovery is emerging, however. Another source familiar with the sector points to a new digital UN verification system for import and export documentation, which will be rolled out by the end of April 2026, as a potential turning point. The system is already receiving positive early reviews from operators who have seen it in action. If he delivers on that promise, the source believes Portugal’s reputation could begin to recover within the next three months.

A trafficking ring that allegedly used fake import permits and European export licenses led to the police operation. The police operation resulted in a regulatory crackdown. The crackdown froze tens of tons of legitimate products at Portuguese facilities. The frozen product, once launched, hit the German market at a price that reset everyone else’s expectations. The main actors, according to the source, are still at large.

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Texas Judge Pauses New Rules Banning Hemp Products Like Smokable THCA Flower Amid Legal Challenge From Industry

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April 10, 2026

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A Texas judge has issued a temporary restraining order preventing the new state from being enforced Regulations restricting access to hemp-derived products such as THCA combustible flower.

Friday’s ruling comes in a lawsuit filed by a coalition of hemp industry leaders and advocacy organizations that effectively outlawed the state’s Department of State Health Services (DSHS) and Health and Human Services Commission (HHSC). ban the sale and manufacture of certain hemp consumable products.

Guerra Gamble Travis County District Court’s order suspends restrictions on hemp products for 14 days while the broader legal case is reviewed.

“This case is based on a constitutional separation of powers issue,” Jason Snell, an attorney for the Texas Hemp Business Council (THBC) and the Hemp Industry & Farmers of America (HIFA), said at a hearing Friday, calling the new restrictions imposed by regulators “illegal rules.”

“Here we are today, with regulators trying to do what lawmakers couldn’t and didn’t do, and that’s illegal,” he said. “What the legislature refuses to decide cannot be imposed by rulemaking. Rulemakers cannot exceed their authority and impose rules that are more restrictive than those enacted by the legislature.”

“Thousands of people lose their products, their lifetime investments, their businesses, their jobs, everything they put their heart and soul into,” Snell said. “They are already disappearing and may disappear forever unless this illegal regulatory framework is stopped.”

Zachary Berg, the state’s attorney, suggested at the hearing that the new rules are needed to comply with a federal law that is set to redefine legal marijuana under a restrictive new definition that will begin in November.

Under state law passed by the legislature and governor in 2019, the suit says cannabis products are legal if they contain no more than 0.3 percent delta-9 THC. But regulators at DSHS and HHSC recently approved a “total delta-9 THC” limit using a post-decarboxylation formula that includes tetrahydrocannabinolic acid (THCA) in the calculation.

Texas lawmakers passed legislation to severely restrict hemp products in the 2025 session, but Gov. Greg Abbott (R) vetoed it and did not make it into law.

The hemp industry lawsuit, which also lists Attorney General Ken Paxton (R) as a defendant, also calls into question large increases in business license fees that were approved by regulators. Under the new rules, the cost of a manufacturer’s license increased from $250 to $10,000 per facility, while the retailer registration fee increased from $150 to $5,000 per location.

On Friday, the judge did not order the removal of the new fees, however.

“These measures do not impose the policy choices of the Legislature; they supersede them,” the industry complaint says. “And they do so against the backdrop of a constitutional legislative process that ran its entire course — from the legislative passage of Senate Bill 3 to the governor’s veto, two failed special sessions — and produced an ambiguous result: no new law. Texas law does not allow agencies to override that result through rulemaking.”

“Texas has long promoted itself as a national leader in economic growth and regulatory stability. It is a state committed to fostering innovation, supporting legitimate businesses, and maintaining a predictable legal environment in which businesses can operate and invest,” he says. “Consistent with this vision, Texas has chosen to authorize and regulate the manufacture, distribution and sale of consumer hemp products (“CHP”) through a comprehensive statutory framework enacted by the Legislature in 2019.

“Plaintiffs acknowledge this framework and the State’s interest in ensuring that CHPs are produced and sold in a safe, responsible and lawful manner,” the lawsuit states.

In addition to an immediate temporary restraining order to block enforcement of the new rules, the plaintiffs are seeking a temporary and permanent injunctive relief. A hearing on the preliminary injunction request is scheduled for April 23.

Separately, Texas officials recently conditionally approved more new medical marijuana business licenses As part of a law being implemented to significantly expand the state’s cannabis program.

In the last month, Texas voters approved a question to legalize marijuana that showed up in the state’s Democratic primary voting.

A statewide survey released in February found that Texas voters don’t like how state leaders and lawmakers have handled marijuana and THC policy issues. In the poll, many voters (40 percent) said they disapprove of how their elected officials have approached the issue, according to the poll. 29 percent said they approve of how cannabis issues have been handled, while 31 percent said they had no opinion either way.

A separate survey released last year proved this A large number of Texas voters want the state’s marijuana laws to be “less stringent.” And among the issues examined by members of parliament in the last special sessions, the voters said that a proposal to deal with the regulation of hemp was one of the least important.

Meanwhile, the lieutenant governor and speaker of the House recently announced that the state will continue with their own ibogaine research program The drug companies did not submit proposals to meet the requirements and standards for receiving state funds under a recently passed law to begin clinical trials with the psychedelic.

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