“Defendants are free to implement the law as they see fit, including accepting applications, holding a lottery, and issuing adult-use recreational and social equity cannabis licenses.”
By Christopher Shea, Rhode Island Current
A federal court order that blocked Rhode Island regulators from awarding cannabis retail licenses is now lifted, clearing the way for a new application process already underway.
U.S. District Court Judge Melissa DuBose on Friday dissolved the preliminary injunction she issued against the Rhode Island Cannabis Control Commission on April 8 now that the state’s 2022 Cannabis Act Act no longer requires all retail license holders to be majority-owned by Rhode Island residents.
“Defendants are free to implement the law as they see fit, including accepting applications, holding a lottery, and issuing adult-use recreational and social equity cannabis licenses,” DuBose, a Biden appointee, wrote.
DuBose indicated in a July 22 order she would grant the state’s motion to dissolve the April ruling once the three lawsuits challenging Rhode Island’s residency requirements were kicked down from Boston’s appellate court, which happened August 11.
Under the new law signed by Gov. Dan McKee (D) on June 10, applicants are defined as a person or a business who has “made an application for issuance of a license or certificate to own or engage in a cannabis business.”
The amended Cannabis Act voided the original application process, and the Cannabis Control Commission opened a new one on August 7. Online submissions for the state’s three license types will be accepted through Monday, November 23.
“The General Assembly’s passage of SB 3313 removed provisions deemed likely to violate the Constitution and because of that, the controversy at issue in the preliminary injunction is no longer immediate or real,” DuBose wrote.
The legal challenges began in May 2024, when California cannabis entrepreneur Justyna Jensen sued the Cannabis Control Commission in U.S. District Court in Providence, arguing Rhode Island’s residency requirement for licenses under the original Cannabis Act violated interstate commerce protection. That same month, Florida resident John Kenney filed a second federal lawsuit against the commission objecting to the residency requirement. A California resident filed a third lawsuit on similar grounds on November 24, 2025.
DuBose initially dismissed the complaints in February 2025 since two were filed before the commission enacted the state’s inaugural cannabis regulations in May 2025. But the cases were revived in December by Boston’s federal appeals court, which demanded DuBose rule based on the merits of the cases.
Her April ruling barred the Cannabis Control Commission from holding a lottery to award licenses and reviewing the 97 license applications submitted for 20 new retail cannabis licenses.
Because of the state’s recent changes, regulators filed a motion in late June to dissolve DuBose’s preliminary injunction arguing the complaints against the residency requirement were moot.
Kenney and his attorneys supported the state’s request. Jensen and her legal team opposed it, claiming the new law still disadvantaged out-of-state applicants because they would have to secure property in Rhode Island on a short timeline in order to qualify for a retail license.
DuBose was unpersuaded by Jensen’s argument.
“She has had years, not months, to scour the Rhode Island market in search of a suitable property,” DuBose wrote in Friday’s ruling. “She has also had at least four months to search for property since this court entered its injunction.”
Jeffrey Jensen, Justyna’s husband and attorney, did not immediately respond to request for comment Monday.
Charon Rose, spokesperson for the Cannabis Control Commission, said the agency welcomed DuBose’s decision to dissolve the injunction but declined to comment further amid the ongoing litigation.
No applications for adult-use retail licenses have been submitted as of Monday afternoon, Rose confirmed in an email. The commission has received 32 interest forms from prospective social equity applicants, with 13 applying for initial screening for the license type reserved for people adversely affected by the war on drugs.
Social equity businesses must be majority owned by one or more people who can show they were disproportionately impacted by criminal enforcement of past prohibitions, including being arrested or having a family member who was.
The certification process will remain open through September 11.
