2019 -- H 6070

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

RELATING TO FOOD AND DRUGS - THE EDWARD O. HAWKINS AND THOMAS C.

SLATER MEDICAL MARIJUANA ACT - THE RHODE ISLAND CANNABIS EQUITY ACT

OF 2019

     Introduced By: Representatives Williams, Almeida, Cassar, Vella-Wilkinson, and Slater

     Date Introduced: May 03, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 21-28.6 of the General Laws entitled "The Edward O. Hawkins and

Thomas C. Slater Medical Marijuana Act" is hereby amended by adding thereto the following

sections:

     21-28.6-18. Rhode Island cannabis equity.

     (a)(1) Cannabis prohibition has had a devastating impact on communities across Rhode

Island and across the United States. Persons convicted of a cannabis-related offense and their

families suffer the long-term consequences of prohibition. These individuals have a more difficult

time entering the newly created adult-use cannabis industries due, in part, to a lack of access to

capital, business space, technical support, and regulatory compliance assistance. In partial

recognition of this, the general assembly decriminalized possession of small amounts of

marijuana in 2013. Since 2006, medicinal use of marijuana has been permitted in Rhode Island.

     (2) During the era of cannabis prohibition in Rhode Island, the burdens of arrests,

convictions, and long-term collateral consequences arising from a conviction related to cannabis

fell disproportionately on Black and Latinx people, even though people of all races used and sold

cannabis at nearly identical rates. A policy report issued by Open Doors in 2010 reported that in

2008, people of color were arrested for possession of marijuana and sentenced to prison at a rate

eight (8) times higher than white persons. A report released by the American Civil Liberties

Union in 2013 found that in Rhode Island in the years 2001 through 2010, black persons were

arrested for marijuana possession at a rate nearly three (3) times the rate of white persons. The

collateral consequences associated with cannabis law violations, coupled with generational

poverty and a lack of access to resources, made it extraordinarily difficult for persons of color,

especially those with prior convictions, to enter the newly regulated cannabis industries.

     (3) Offering technical support, regulatory compliance assistance, and assistance with

securing the capital necessary to begin a business in the emerging new cannabis industries will

help to reduce barriers to licensure and employment of persons of color.

     (4) Offering these supports will also aid the state in eliminating or reducing the illicit

cannabis market by bringing more people into the legal marketplace.

     (5) It is the intent of this act to ensure that persons most harmed by cannabis

criminalization be offered assistance to enter the cannabis industries as entrepreneurs or as

employees with high quality and well-paying jobs. It is also the intent of this act to ensure that

barriers to persons of color entering the cannabis industries are reduced or eliminated.

     (b) As used in this chapter, the term "persons of color" means people who are citizens or

permanent residents of the United States and who are:

     (1) Black (a person having origins in any of the black racial groups of Africa); or

     (2) Hispanic (a person of Mexican, Puerto Rican, Cuban, Central or South American, or

other Spanish culture or origin, regardless of race); or

     (3) Asian American (a person having origins in any of the original peoples of the Far

East, Southeast Asia, the Indian subcontinent, or the Pacific Islands); or

     (4) American Indian and Alaskan Native (a person having origins in any of the original

peoples of North America).

     21-28.6-19. Distribution of certificates and licenses.

     (a) Notwithstanding any provisions of this chapter to the contrary, effective July 1, 2019,

and thereafter, the department of business regulation (the "department") shall implement policies

to increase participation in the marijuana industry of people of color or persons found to be

disproportionately impacted by marijuana prohibition based on the 2019 legislative analysis

entitled "the Rhode Island cannabis equity act" hereinafter referred to as the "2019 legislative

analysis" conducted to determine whether a disparity exists in the arrest or conviction rate for

marijuana arrests. Policies implemented pursuant to this section shall pursue a goal of ensuring

that half (1/2) of all new compassion center registration certificates issued, including, but not

limited to, certificates issued pursuant to the provisions of § 21-28.6-12, are issued to persons of

color or those persons found by the 2019 legislative analysis to be disproportionately impacted by

marijuana prohibition. In promulgating these policies, the department shall consider factors and

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goals identified in § 21-28.6-18(a), the conclusions reached in the 2019 legislative analysis, and

other factors designed to promote the entry of persons of color and persons found by the 2019

legislative analysis to be disproportionately impacted by marijuana prohibition into the cannabis

industries.

     (b) Notwithstanding any provisions of this chapter to the contrary, effective July 1, 2019,

and thereafter, the department shall implement policies to increase participation of people of color

or persons found to be disproportionately impacted by marijuana prohibition based on the 2019

legislative analysis. Policies implemented pursuant to this section shall pursue a goal of ensuring

that half (1/2) of all new cultivator licenses issued, including, but not limited to, licenses issued

pursuant to the provisions of § 21-28.6-16, are issued to persons of color or persons found by the

2019 legislative analysis to be disproportionately impacted by marijuana prohibition who are also

residents of Rhode Island. In issuing these licenses, the department shall consider factors and

goals identified in § 21-28.6-18(a), the conclusions reached in the 2019 legislative analysis and

other factors designed to promote the entry of persons of color or persons found by the 2019

legislative analysis to be disproportionately impacted into the cannabis industries.

     (c) In issuing any certificate or license pertaining to the cannabis industries, the

department shall also consider the number of the persons of color or those persons found by the

2019 legislative analysis to be disproportionately impacted by marijuana prohibition who the

applicant for the certificate or license will employ under or pursuant to the certificate or license.

The department shall encourage applicants who commit to ensuring that at least a quarter (1/4) of

their staff are persons of color or among those persons found by the 2019 legislative analysis to

be disproportionately impacted by marijuana prohibition.

     21-28.6-20. Cannabis economic opportunity fund.

     (a) Fund established.

     (1) Effective July 1, 2019, there is hereby established a restricted receipt account entitled

the "cannabis economic opportunity fund” (the “fund”).

     (b) Funding.

     (1) Thirty percent (30%) of all monies and revenues generated by sales, licensure, fines,

taxes and fees charged pursuant to this chapter and any other provisions related to the

marijuana/cannabis industries, and thirty percent (30%) of all monies collected as a fine for a

violation of a law or rule pertaining to marijuana/cannabis, shall be deposited into the fund. The

fund shall be administered by the department of business regulation (the "department").

     (c) Distribution of fund.

     (1) Eighty percent (80%) of the fund shall be used to provide interest free loans to

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persons of color or persons found by the 2019 legislative analysis to be disproportionately

impacted by marijuana prohibition who are seeking entry into the cannabis industries. Applicants

for these loans shall set forth in detail the proposed use of the funds and, if a loan is approved, the

applicant shall be required to use the funds in accordance with the applicant’s application. The

approval process for these loans shall be established by rules and regulations promulgated by the

department. The department shall provide assistance to persons of color or persons found by the

2019 legislative analysis to be disproportionately impacted by marijuana prohibition in the

completion of these loan applications.

     (2) Twenty percent (20%) of the fund shall be used to provide job training to assist

persons of color or persons found by the 2019 legislative analysis to be disproportionately

impacted by marijuana prohibition in gaining entrance into the cannabis industries.

     21-28.6-21. Social equity analysis – Finding and conclusions.

     To facilitate greater equity in business ownership and employment in the cannabis

market, the department of business regulation (the "department") shall do all of the following:

     (1) Serve as a point of contact for and to assist persons of color or persons found by the

2019 legislative analysis to be disproportionately impacted by marijuana prohibition interested in

gaining access to the cannabis industries.

     (2) On or before July 1, 2020, publish the findings or conclusions reached by the

legislative analysis.

     (3) To the extent feasible, assist and provide guidance to persons of color or persons

found by the 2019 legislative analysis to be disproportionately impacted by marijuana prohibition

seeking to enter the cannabis industries in regard to appearances before and dealings with local

municipal agencies, including, but not limited to, planning and zoning boards, and municipal

governing councils.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO FOOD AND DRUGS - THE EDWARD O. HAWKINS AND THOMAS C.

SLATER MEDICAL MARIJUANA ACT - THE RHODE ISLAND CANNABIS EQUITY ACT

OF 2019

***

     This act would seek to remove barriers to persons of color or persons found to be

disproportionately impacted by marijuana prohibition from entering into the cannabis industries.

The act would ensure that a policy is implemented to promote an equitable distribution of licenses

and certificates related to these industries. The act would also establish a loan program, to be

administered by the department of business regulation, to assist persons of color or persons found

to be disproportionately impacted by marijuana prohibition to gain access into the cannabis

industries.

     This act would take effect upon passage.

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