2022 -- H 7593

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LC003594

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

RELATING TO FOOD AND DRUGS -- RHODE ISLAND CANNABIS ACT

     

     Introduced By: Representatives Slater, Hull, Williams, Kazarian, Solomon, McNamara,
O'Brien, Potter, Bennett, and Morales

     Date Introduced: March 01, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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     SECTION 1. Title 21 of the General Laws entitled "FOOD AND DRUGS" is hereby

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amended by adding thereto the following chapter:

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CHAPTER 28.11

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THE RHODE ISLAND CANNABIS ACT

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     21-28.11-1. Short title.

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     This chapter shall be known and may be cited as the "Rhode Island Cannabis Act".

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     21-28.11-2. Organizational structure.

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     (a) The regulation, licensing, and enforcement requirements pertaining to regulated

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cannabis establishments shall be conducted pursuant to the provisions of this chapter by virtue of

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an independent three (3) member commission which shall exercise all powers necessary for the

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implementation, administration and enforcement of cannabis regulation and policy for both medical

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and adult use cannabis.

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     (b) The commission shall work in conjunction with the cannabis advisory board which

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shall provide advice, recommendations and proposals to the commission relative to the equitable

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administration and regulation of cannabis, including the distribution of funds from the social equity

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assistance fund pursuant to the provisions of this chapter.

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     (c) Additionally, pursuant to the provisions of this chapter following the final issuance of

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the commission's rules and regulations there shall be established within the department of business

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regulation the "cannabis office" which shall provide administrative and other support to the

 

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commission subject to this chapter and the rules and regulations promulgated by the commission

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pursuant hereto.

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     21-28.11-3. Definitions.

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     For purposes of this chapter, the following words, terms and phrases shall have the

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following meanings:

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     (1) "Administrator" means the deputy director of the department of business regulation

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assigned as the administrator of the cannabis office pursuant to the provisions of § 21-28.11-18.1.

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     (2) "Adult use cannabis" means cannabis which may be legally possessed and consumed

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for non-medical purposes by a person who is at least twenty-one (21) years of age.

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     (3) "Applicant" means a Rhode Island resident or a business entity with a principal place

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of business located in Rhode Island to include, but not limited to, a corporation, limited liability

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company, limited liability partnership or partnership, and in which one hundred percent (100%) of

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the equity in the business entity is owned by residents of Rhode Island, and the Rhode Island

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resident or business entity has made application for issuance of a license or certificate to own or

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engage in a cannabis business subject to the provisions of this chapter.

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     (4) ''Cannabinoid'' means any of several compounds produced by cannabis plants that have

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medical and psychotropic effects.

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     (5) ''Cannabinoid profile" means amounts, expressed as the dry-weight percentages, of

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delta-nine-tetrahydrocannabinol, cannabidiol, tetrehydrocannabinolic acid and cannabidiolic acid

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in a cannabis product. Amounts of other cannabinoids may be required by the commission.

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     (6) "Cannabis" or "Marijuana'' or ''Marihuana'' means all parts of any plant of the genus

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cannabis, not excepted below and whether growing or not; the seeds thereof; and resin extracted

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from any part of the plant; and every compound, manufacture, salt, derivative, mixture or

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preparation of the plant, its seeds or resin including tetrahydrocannabinol; provided, however, that

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''cannabis'' shall not include:

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     (i) The mature stalks of the plant, fiber produced from the stalks, oil, or cake made from

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the seeds of the plant, any other compound, manufacture, salt, derivative, mixture or preparation of

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the mature stalks, fiber, oil or cake made from the seeds of the plant or the sterilized seed of the

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plant that is incapable of germination;

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     (ii) Hemp; or

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     (iii) The weight of any other ingredient combined with cannabis to prepare topical or oral

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administrations, food, drink or other products.

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     (7) "Cannabis accessories" or ''marijuana accessories'' means equipment, products, devices

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or materials of any kind that are intended or designed for use in planting, propagating, cultivating,

 

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growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing,

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testing, analyzing, packaging, repackaging, storing, containing, ingesting, inhaling or otherwise

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introducing cannabis into the human body.

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     (8) "Cannabis advisory board" or "advisory board" means the cannabis advisory board

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established pursuant to the provisions of § 21-28.11-6.

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     (9) ''Cannabis concentrate'' means the resin extracted from any part of the plant of the genus

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cannabis and every compound, manufacture, salt, derivative, mixture or preparation of that resin

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but shall not include the weight of any other ingredient combined with cannabis to prepare cannabis

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products.

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     (10) ''Cannabis control commission'' or "commission" means the Rhode Island cannabis

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control commission established by § 21-28.11-4.

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     (11) "Cannabis cultivator" or ''marijuana cultivator'' means an entity licensed to cultivate,

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process and package cannabis, to deliver cannabis to cannabis establishments and to transfer

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cannabis to other cannabis establishments, but not to consumers.

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     (12) "Cannabis establishment" or ''marijuana establishment'' means a cannabis cultivator,

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independent testing laboratory, cannabis product manufacturer, cannabis retailer, hybrid cannabis

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retailer or any other type of licensed cannabis-related business.

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     (13) "Cannabis office" means the office established within the department of business

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regulation pursuant to §§ 21-28.11-18 and 21-28.11-18.1.

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     (14) "Cannabis product manufacturer" or ''marijuana product manufacturer'' means an

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entity licensed to obtain, manufacture, process and package cannabis and cannabis products, to

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deliver cannabis and cannabis products to cannabis establishments and to transfer cannabis and

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cannabis products to other cannabis establishments, but not to consumers.

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     (15) "Cannabis products" or ''marijuana products'' means products that have been

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manufactured and contain cannabis or an extract from cannabis, including concentrated forms of

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cannabis and products composed of cannabis and other ingredients that are intended for use or

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consumption, including edible products, beverages, topical products, ointments, oils and tinctures.

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     (16) "Cannabis retailer" or ''marijuana retailer'' means an entity licensed pursuant to § 21-

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28.11-10.2 to purchase and deliver cannabis and cannabis products from cannabis establishments

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and to deliver, sell or otherwise transfer cannabis and cannabis products to cannabis establishments

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and to consumers.

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     (17) "Chairperson" means the chairperson of the cannabis control commission established

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pursuant to § 21-28.11-4.

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     (18) ''Close associate'' means a person who holds a legally recognized financial interest in,

 

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or is entitled to exercise power in, the business of an applicant or licensee and, by virtue of that

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interest or power, is able to exercise a significant influence over the management or operation of a

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cannabis establishment licensed under this chapter.

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     (19) ''Consumer'' means a person who is at least twenty-one (21) years of age, and who is

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authorized by law to consume or use cannabis.

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     (20) ''Controlling person'' means an officer, board member or other individual who has a

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financial or voting interest of ten percent (10%) or greater in a cannabis establishment.

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     (21) ''Cultivation batch'' means a collection of cannabis plants from the same seed or plant

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stock that are cultivated and harvested together, and receive an identical propagation and cultivation

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treatment, including, but not limited to: growing media, ambient conditions, watering and light

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regimes and agricultural or hydroponic inputs. Every cannabis cultivator licensee shall assign and

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record a unique, sequential alphanumeric identifier to each cultivation batch for the purposes of

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production tracking, product labeling and product recalls.

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     (22) "Disproportionately impacted area" means a census tract or comparable geographic

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area that satisfies at least one of the following criteria as determined by the commission, that:

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     (A) The area has a poverty rate of at least twenty percent (20%) according to the latest

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federal decennial census; or

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     (B) Seventy-five percent (75%) or more of the children in the area participate in the federal

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free lunch program according to reported statistics from the Rhode Island board of education; or

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     (C) At least twenty percent (20%) of the households in the area receive assistance under

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the Supplemental Nutrition Assistance Program (SNAP); or

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     (D) The area has an average unemployment rate, as determined by the Rhode Island

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department of labor and training, that is more than one hundred twenty percent (120%) of the

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national unemployment average, as determined by the United States Department of Labor, for a

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period of at least two (2) consecutive calendar years preceding the date of the application; or

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     (E)(i) The area has a disproportionately high rates of arrest, conviction, and incarceration

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related to the sale, possession, use, cultivation, manufacture, or transportation of cannabis in

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comparison to other communities and localities in the state; or

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     (ii) The area has a history of arrests, convictions, and other law enforcement practices in a

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certain geographic area, such as, but not limited to, precincts, zip codes, neighborhoods, and

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political subdivisions, reflecting a disparate enforcement of cannabis prohibition during a certain

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time period, when compared to the remainder of the state. The commission shall, with

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recommendations from the cannabis advisory board and the chief equity officer, issue guidelines

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to determine how to assess which communities have been disproportionately impacted and how to

 

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assess if someone is a member of a community disproportionately impacted.

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     (23) "Final issuance of the commission's rules and regulations" means the rules and

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regulations adopted by the commission after compliance with requirements of chapter 35 of title

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42 (the "administrative procedures act") and chapter 46 of title 42 (the "open meetings act") and

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shall not include any emergency, provisional or interim rules, regulations, orders, instructions or

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directives.

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     (24) ''Finished cannabis'' means a usable cannabis, cannabis resin or cannabis concentrate.

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     (25) ''Hemp'' means the plant of the genus cannabis or any part of the plant, whether

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growing or not, with a delta-9-tetrahydrocannabinol concentration that does not exceed three tenths

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of one percent (0.3%) on a dry weight basis of any part of the plant of the genus cannabis, or per

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volume or weight of cannabis product, or the combined per cent of delta-9-tetrahydrocannabinol

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and tetrahydrocannabinolic acid in any part of the plant of the genus cannabis regardless of moisture

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content.

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     (26) ''Host community'' means a municipality in which a cannabis establishment or a

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medical cannabis treatment center is located or in which an applicant has proposed locating a

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cannabis establishment or a medical cannabis treatment center.

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     (27) "Hybrid cannabis retailer" or "hybrid compassion center" means a compassion center

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licensed pursuant to chapter 28.6 of title 21 that is in good standing with the department of business

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regulation and that has paid the fee pursuant to § 21-28.11-10 and has been authorized to sell non-

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medical or adult use cannabis to consumers.

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     (28) ''Independent testing laboratory'' means a laboratory that is licensed by the commission

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and is:

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     (i) Accredited to the most current International Organization for Standardization 17025

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(ISO/IEC 17025) by a third-party accrediting body that is a signatory to the International

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Laboratory Accreditation Cooperation mutual recognition arrangement or that is otherwise

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approved by the commission;

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     (ii) Independent financially from any medical cannabis treatment center or any licensee or

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cannabis establishment for which it conducts a test; and

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     (iii) Qualified to test cannabis in compliance with regulations promulgated by the

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commission pursuant to this chapter. The term includes, but is not limited to, an independent testing

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laboratory as provided in § 21-28.11-11.

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     (29) ''Laboratory agent'' means an employee of an independent testing laboratory who

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transports, possesses or tests cannabis.

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     (30) ''Licensee'' means a person or entity licensed by the commission pursuant to the

 

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provisions of this chapter. Any business structure recognized under title 7 of the general laws,

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including, but not limited to, corporations, partnerships, limited partnerships, limited-liability

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companies, and workers' cooperatives, which is otherwise qualified, is eligible to be considered by

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the commission as an entity licensee.

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     (31) ''Manufacture'' means to compound, blend, extract, infuse or otherwise make or

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prepare a cannabis product.

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     (32) "Medical cannabis" means cannabis and cannabis products that satisfy the

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requirements of chapter 28.6 of title 21 and have been given the designation of "medical cannabis"

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or "medical marijuana" due to dose, potency and form. Medical cannabis products are only

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available for use by patient cardholders, and may only be sold to or possessed by patient

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cardholders, or their registered caregiver, or authorized purchaser in accordance with chapter 28.6

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of title 21. Medical cannabis may not be sold to, possessed by, manufactured by, or used by any

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person except as permitted pursuant to chapter 28.6 of title 21.

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     (33) "Medical cannabis treatment center" or "Medical marijuana treatment center" includes

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a compassion center, a medical marijuana emporium, or marijuana establishment licensee who

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operates a treatment center, as defined in § 21-28.6-3.

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     (34) "Member of an impacted family" means an individual who has a parent, legal

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guardian, child, spouse, or dependent, or was a dependent of an individual who, prior to the

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effective date of this chapter, was arrested for, charged with, convicted of, or adjudicated delinquent

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for any offense that is eligible for expungement under this chapter.

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     (35) ''Mycotoxin'' means a secondary metabolite of a microfungus that is capable of causing

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death or illness in humans and other animals. For the purposes of this chapter, mycotoxin shall

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include alfatoxin B1, alfatoxin B2, alfatoxin G1, alfatoxin G2 and ochratoxin A.

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     (36) "Ownership and control" means ownership of at least fifty-one percent (51%) of the

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cannabis establishment, and control over the management and day-to-day operations of the

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cannabis establishment, and an interest in the capital, assets, and profits and losses of the cannabis

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establishment proportionate to percentage of ownership.

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     (37) ''Process'' or ''processing'' means to harvest, dry, cure, trim and separate parts of the

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cannabis plant by manual or mechanical means, except it shall not include manufacture as defined

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in this section.

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     (38) ''Production batch'' means a batch of finished plant material, cannabis resin, cannabis

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concentrate or cannabis-infused product made at the same time, using the same methods, equipment

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and ingredients. The licensee shall assign and record a unique, sequential alphanumeric identifier

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to each production batch for the purposes of production tracking, product labeling and product

 

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recalls. All production batches shall be traceable to one or more cannabis cultivation batches.

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     (39) "Social equity applicant" means an applicant that has been disproportionately

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impacted by criminal enforcement of marijuana laws, including individuals convicted of nonviolent

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marijuana offenses, immediate family members of individuals convicted of nonviolent marijuana

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offenses and individuals who have resided in disproportionately impacted areas for at least five (5)

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of the last ten (10) years, as determined by the commission and further specified in the rules and

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regulations that shall identify factors and other considerations to be evaluated in certifying

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applicants as social equity applicants, provided that such applicants shall at a minimum meet one

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of the following criteria:

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     (i) An applicant with at least fifty-one percent (51%) ownership and control by one or more

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individuals who have resided for at least five (5) of the preceding ten (10) years in a

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disproportionately impacted area.

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     (ii) An applicant with at least fifty-one percent (51%) ownership and control by one or

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more individuals who:

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     (A) Have been arrested for, convicted of, or adjudicated delinquent for any offense that is

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eligible for expungement under this chapter; or

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     (B) Is a member of an impacted family.

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     (iii) For applicants with a minimum of ten (10) full-time employees, an applicant with at

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least fifty-one percent (51%) of current employees who:

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     (A) Currently reside in a disproportionately impacted area; or

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     (B) Have been arrested for, convicted of, or adjudicated delinquent for any offense that is

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eligible for expungement under this chapter or is a member of an impacted family.

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     (iv) An applicant that can demonstrate significant past experience in or business practices

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that promote economic empowerment in disproportionally impacted areas.

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     (v) Income does not exceed four hundred percent (400%) of the median income, as defined

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by the commission, in a disproportionally impacted area for at least five (5) of the past ten (10)

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years.

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     (40) ''Residual solvent'' means a volatile organic chemical used in the manufacture of a

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cannabis product and that is not completely removed by practical manufacturing techniques.

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     (41) ''Terpenoid'' means an isoprene that are the aromatic compounds found in cannabis,

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including, but not limited to: limonene, myrcene, pinene, linalool, eucalyptol, Δ-terpinene, ß-

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caryophyllene, caryophyllene oxide, nerolidol and phytol.

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     (42) ''Unreasonable and impracticable'' means that the measures necessary to comply with

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the rules and regulations adopted pursuant to this chapter subject licensees to unreasonable risk or

 

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require such a high investment of money, time or any other resource or asset that a reasonably

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prudent businessperson would not operate a cannabis establishment.

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     (43) "Workers' cooperative" means an applicant organized and operated pursuant to the

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provisions of chapter 6.2 of title 7.

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     21-28.11-4. Cannabis control commission.

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     (a) Establishment of commission. There is hereby established an independent commission

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known as the Rhode Island Cannabis Control Commission. The purpose of the commission is to

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oversee the regulation, licensing and control of adult use and medical cannabis and upon transfer

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of powers pursuant to the provisions of § 21-28.11-10.1, to exercise primary responsibility to

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oversee the regulation, licensing and control of all legal cannabis and marijuana use to include

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medical marijuana.

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     (b) Appointment of commissioners. The Cannabis Control Commission (commission) shall

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consist of three (3) voting commissioners. The governor shall appoint, with the advice and consent

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of the senate, the three (3) voting members of the commission. The speaker of the house shall,

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within thirty (30) days of the effective date of this chapter, submit to the governor a list of three (3)

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individuals that the governor shall give due consideration to appointing one individual from this

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list. The president of the senate shall, within thirty (30) days of the effective date of this chapter,

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submit to the governor a list of three (3) individuals that the governor shall give due consideration

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to appointing one individual from this list. The governor shall also appoint one individual without

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regard to the lists submitted by the speaker of the house and the president of the senate and shall

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designate one of the members to serve as chairperson of the commission. The governor shall within

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forty (40) days of the effective date of this chapter submit to the senate for advice and consent the

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list of three (3) individuals for appointment to the commission. Prior to appointment to the

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commission, a background investigation shall be conducted into the financial stability, integrity

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and responsibility of each appointee, including the appointee's reputation for good character, and

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honesty. No commissioner or commissioner's spouse, or child shall have any interest whatsoever

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in any entity regulated by the commission.

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     (c) Commissioner requirements. Each commissioner shall be a resident of the state within

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ninety (90) days of appointment, and while serving on the commission, shall not:

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     (1) Hold, or be a candidate for, federal, state or local elected office;

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     (2) Hold an appointed office or other employment in a federal, state or local government;

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or

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     (3) Serve as an official in a political party.

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     (d) Term Limits. Term limits on the initial commissioners shall be as follows: The

 

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governor's appointee shall serve for an initial term of one year and shall be eligible for

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reappointment in accordance with this section. The appointee chosen after consideration of the list

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provided by the president of the senate shall serve an initial term of two (2) years and shall be

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eligible for reappointment in accordance with this section. The appointee chosen after consideration

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of the list provided by the speaker of the house shall serve an initial term of three (3) years and

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shall be eligible for reappointment in accordance with this section.

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     (1) Each initial commissioner is eligible for reappointment for one six (6) year term or until

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a successor is appointed. Each subsequent commissioner shall serve for a term of six (6) years or

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until a successor is appointed. Every person appointed or reappointed to fill a vacancy on the

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cannabis control commission shall be appointed in the manner established pursuant to this section.

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     (2) If a vacancy is created prior to the expiration of any commissioner's term, said vacancy

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shall be filled in the manner established pursuant to this section. Any person appointed to fill said

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vacancy shall complete the commissioner's unexpired term and shall then be eligible for

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reappointment for one additional term pursuant to this section.

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     (e) Removal of a commissioner. A commissioner may be removed with or without cause

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pursuant to the provisions of § 36-1-7. The governor shall remove a commissioner with advice and

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consent of the senate if the commissioner:

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     (1) Is guilty of malfeasance in office;

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     (2) Substantially neglects the duties of a commissioner;

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     (3) Is unable to discharge the powers and duties of the office;

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     (4) Commits gross misconduct; or

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     (5) Is convicted of a felony.

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     (f) Compensation. The chairperson of the commission shall devote their full time attention

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to the duties of the commission. The chairperson shall be a state employee and shall receive a salary

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as determined by the governor subject to appropriation by the general assembly. The remaining

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commissioners shall not be state employees but shall receive a monthly stipend as determined by

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the governor, subject to appropriation by the general assembly, and shall devote sufficient time and

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attention to the commission to adequately perform their duties.

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     (g) Records. The commission shall keep a record of the proceedings of the commission and

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the chair shall be the custodian and keeper of the records of all books, documents and papers filed

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by the commission and of its minute book. The chair shall cause copies to be made of all minutes

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and other records and documents of the commission and shall certify that such copies are true

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copies and all persons dealing with the commission may rely upon such certification. These records

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shall also be subject to the provisions of title 38, "public records." The chair shall have and exercise

 

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supervision and control over all the affairs of the commission. The chair shall preside at all hearings

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at which the chair is present and shall designate a commissioner to act as chair in the chair's absence.

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To promote efficiency in administration, the chair shall make such division or re-division of the

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work of the commission among the commissioners, as the chair deems expedient.

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     (h) Conduct of hearings. The commissioners shall, if so directed by the chair, participate

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in the hearing and decision of any matter before the commission.

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     (1) For purposes of this section "formal matter" shall include all non-procedural matters to

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include, but not limited to, hearings subject to the provisions of chapter 35 of title 42 (the

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"administrative procedures act") and all decisions relative to the awarding of a license or to the

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denial or revocation of licenses. A majority of the commissioners is required to hear and approve

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all formal matters.

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     (2) For purposes of this section, "procedural matters" include scheduling, inclusion of

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agenda items, administrative compliance decisions, ministerial matters, routine clerical functions,

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and any other act delegated by the commission to be performed by an employee of the commission

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or the cannabis office. Any procedural or administrative matter may be heard, examined and

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investigated by a single commissioner or an employee of the commission or the cannabis office as

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designated and assigned by the chair, with the concurrence of one other commissioner. If

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designated by the commission or the cannabis office, the designated employee shall make a report

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in writing relative to the hearing, examination and investigation of every procedural or

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administrative matter. For the purposes of hearing, examining and investigating any procedural or

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administrative matter, the designated employee shall have all of the powers conferred upon a

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commissioner by this section. Any procedural or administrative decision made by a single

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commissioner or designated employee may be appealed within ten (10) days of issuance of the

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decision for a hearing before the full commission.

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     (i) Ethics. The provisions of chapter 14 of title 36, the state code of ethics, shall apply to

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the commissioners and to employees operating under the jurisdiction of the commission to include,

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but not limited to, personnel of the cannabis office; provided, however, that the commission may

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promulgate an internal code of ethics for all members and employees that may be more restrictive

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than the provisions of chapter 14 of title 36. A copy of any internal code of ethics adopted or as

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amended shall be filed with the state ethics commission. The internal code may include provisions

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reasonably necessary to carry out the purposes of this chapter.

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     (j) Public body. The cannabis control commission shall be a public body for the purposes

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of chapter 46 of title 42 (the "open meetings act").

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     (k) Finance. The commission shall, for the purposes of compliance with state finance law,

 

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operate as an independent state agency and shall be subject to the laws applicable to agencies under

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the control of the governor; provided, however, that the chairperson may identify any additional

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instructions or actions necessary for the department of administration to manage fiscal operations

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in the state accounting system and meet statewide and other governmental accounting and audit

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standards. The commission shall properly classify the commission's operating and capital

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expenditures, and shall not include any salaries of employees in the commission's capital

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expenditures. Unless otherwise exempted by law, the commission shall participate in any other

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available state administrative services including, but not limited to, the state payroll system, the

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state retirement system, and state purchases.

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     (l) Prohibition on discrimination. The commission and all personnel and employees

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operating under the jurisdiction of the commission to include, but not limited to, personnel of the

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cannabis office, shall not unlawfully discriminate by considering race, color, religion, sex, sexual

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orientation, gender identity or expression, age, national origin, or disability in granting, denying,

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or revoking a license, nor shall any person, corporation, or business firm which is licensed pursuant

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to the provisions of this chapter unlawfully discriminate against or segregate any person based on

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these grounds. All businesses licensed by the commission shall operate on a nondiscriminatory

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basis, according to equal employment treatment and access to their services to all persons, except

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unless otherwise exempted by the laws of the state. Any licensee who fails to comply with this

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policy is subject to any disciplinary action that is consistent with the legal authority and rules and

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regulations of the commission. The commission shall cooperate with the state equal opportunity

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office to prevent any person, corporation, or business firm from unlawfully discriminating because

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of race, color, religion, sex, sexual orientation, gender identity or expression, age, national origin,

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or disability or from participating in any practice which may have a disparate effect on any

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protected class within the population. The state equal opportunity office shall monitor the equal

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employment opportunity activities and affirmative action plans of the commission.

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     21-28.11-5. Powers and duties of the commission.

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     (a) Subject to the state code of ethics and any internal ethics code adopted by the

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commission, the commission shall have all the powers necessary and reasonable to carry out and

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effectuate its purposes, including, but not limited to, the power to:

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     (1) Adopt, amend or repeal rules and regulations for the implementation, administration

31

and enforcement of this chapter.

32

     (2) Determine which applicants shall be awarded licenses;

33

     (3) Deny an application or limit, condition, restrict, revoke or suspend any license;

34

     (4) Determine and establish the process and methodology by which licenses shall be

 

LC003594 - Page 11 of 115

1

awarded by the commission;

2

     (5) Require an applicant for licensure under this chapter to apply for such licensure and

3

approve or disapprove any such application or other transactions, events and processes as provided

4

in this chapter;

5

     (6) Establish a registration process;

6

     (7) Execute all instruments necessary and appropriate, in the commission's discretion, to

7

fulfil the purposes of this chapter;

8

     (8) Enter into agreements or other transactions with a person, including, but not limited to,

9

a public entity or other governmental instrumentality or authority in connection with its powers and

10

duties under this chapter;

11

     (9) Appear on its own behalf before boards, commissions, departments or other agencies

12

of municipal, state or federal government;

13

     (10) Apply for and accept subventions, grants, loans, advances and contributions of money,

14

property, labor or other things of value from any source, to be held, used and applied for its purposes

15

subject to appropriation by the general assembly;

16

     (11) Subject to appropriation by the general assembly, provide and pay for advisory

17

services and technical assistance as may be necessary in its judgment to carry out the purpose and

18

intent of this chapter, and subject to applicable law, fix the compensation of persons providing such

19

services or assistance;

20

     (12) Prepare, publish and distribute, with or without charge as the commission may

21

determine, such studies, reports, bulletins and other materials as required by the provisions of this

22

chapter or other applicable law or as the commission considers appropriate;

23

     (13) Review data and market conditions on an annual basis to determine and recommend

24

the maximum number of licenses that shall be issued to meet the production demands to implement

25

the provisions of this chapter subject to enactment by the general assembly;

26

     (14) Conduct and administer procedures and hearings in compliance with chapter 35 of

27

title 42 (the "administrative procedures act") for adoption of rules or regulations, issuance, denial

28

or revocation of licenses or permits; or for violation of the provisions of this chapter or the rules

29

and regulations adopted pursuant to the provisions of this chapter. Except as otherwise provided in

30

this chapter, the commissioner may impose a civil penalty of not more than five thousand dollars

31

($5,000) and a suspension or revocation of any license for each violation of the provisions of this

32

chapter or the rules and/or regulations promulgated pursuant to the provisions of this chapter;

33

     (15) Gather facts and information and take action applicable to the commission's

34

obligations pursuant to this chapter relating to:

 

LC003594 - Page 12 of 115

1

     (i) Any violation of this chapter or any rule or regulation adopted by the commission;

2

     (ii) Willful violation of an order of the commission directed to a licensee or a person

3

required to be registered;

4

     (iii) The conviction of a criminal offense, for the purpose of determining whether said

5

conviction substantially relates to the occupation or activity to which the license or registration

6

applies; or

7

     (iv) Any other action or conduct which would disqualify a licensee from holding a license

8

pursuant to the provisions of this chapter;

9

     (16) Conduct investigations into the qualifications of all applicants for employment by the

10

commission, the cannabis office and all applicants for licensure pursuant to the provisions of this

11

chapter;

12

     (17) Receive from the state police, the department of attorney general or other criminal

13

justice agencies, including, but not limited to, the Federal Bureau of Investigation and the Internal

14

Revenue Service, such criminal record information relating to criminal and background

15

investigations as necessary for the purpose of evaluating licensees, applicants for licenses, lab

16

agents, and any other employee or agent of a cannabis establishment, as determined by the

17

commission or otherwise required by law;

18

     (18) Be present, through its designated inspectors and agents, at any reasonable time, in

19

cannabis establishments for the purposes of exercising its powers and duties;

20

     (19) Inspect cannabis establishments and have access to all equipment and supplies in a

21

cannabis establishment for the purpose of ensuring and enforcing compliance with this chapter,

22

chapter 28.6 of title 21, and all rules and regulations promulgated pursuant to this chapter and

23

chapter 28.6 of title 21;

24

     (20) In coordination with the state police, seize and remove from the premises of a cannabis

25

establishment and impound any cannabis, equipment, supplies, documents and records obtained or

26

possessed in violation of this chapter, chapter 28.6 of title 21, or the rules and regulations of the

27

commission;

28

     (21) Require that the books and financials or other records or statements of a licensee be

29

kept in a manner that the commission deems proper;

30

     (22) For cause, demand access to and inspect all papers, books and records of close

31

associates of a licensee whom the commission reasonably suspects is involved in the financing,

32

operation or management of the licensee; provided, however, that the inspection, examination,

33

photocopying and audit may take place on the affiliate's premises or elsewhere as practicable and

34

in the presence of the affiliate or its agent;

 

LC003594 - Page 13 of 115

1

     (23) Impose and collect fees, sanctions and civil penalties, as authorized by this chapter,

2

and for a violation of any rule or regulation promulgated by the commission;

3

     (24) Establish adjudicatory procedures and conduct adjudicatory proceedings pursuant to

4

the provisions of chapter 35 of title 42 (the "administrative procedures act");

5

     (25) Refer cases for criminal prosecution to the appropriate federal, state or local

6

authorities;

7

     (26) Maintain an official Internet website for the commission that, in the discretion of the

8

commission, may be in coordination with the cannabis office;

9

     (27) Submit any matter to the advisory board for study, review or recommendation;

10

     (28) Request and/or approve or disapprove recommendations by the cannabis advisory

11

board made pursuant to § 21-28.11-6 to include, but not be limited to, distribution of funds from

12

the social equity assistance fund established pursuant to § 21-28.11-31;

13

     (29) Monitor any federal activity regarding cannabis;

14

     (30) Delegate any administrative, procedural or operational matter to the cannabis office;

15

     (31) Issue temporary emergency orders, directives or instructions, with or without prior

16

notice or hearing, in an instance in which the public health or safety is in substantial or imminent

17

danger as it relates to the activities, conduct or practices of a licensee or as a result of a defective

18

or dangerous product offered for sale by a licensee. If a temporary emergency order, directive or

19

instruction without notice or a hearing is issued by the commission then the order, directive or

20

instruction shall expire after ten (10) days unless a hearing is noticed by the commission within the

21

ten (10) day period, and the hearing is scheduled to be conducted within twenty (20) days of the

22

issuance of the order, directive or instruction;

23

     (32) Approve transitional regulations pursuant to § 21-28.11-10.1 related to the temporary

24

regulation of cultivation, manufacture and sale of cannabis for retail sale by hybrid cannabis

25

retailers during the transitional period established by § 21-28.11-10.1.

26

     (33) Provide recommendations to the general assembly regarding any advisable or

27

proposed amendments to chapter 26 of title 2 relative to the regulation of industrial hemp and the

28

use of hemp as a commercial product.

29

     (b) The commission shall, pursuant to subsection (a) of this section, adopt rules and

30

regulations consistent with this chapter for the administration, clarification and enforcement of

31

provisions regulating and licensing cannabis establishments and the sale, possession and use of

32

cannabis. The rules and regulations shall include, but not be limited to:

33

     (1) Methods and forms of application which an applicant for a license shall follow and

34

complete before consideration by the commission;

 

LC003594 - Page 14 of 115

1

     (2) Requirements for the information to be furnished by an applicant or licensee;

2

     (3) Criteria for evaluation of the application for a license;

3

     (4) Qualifications for licensure and minimum standards for employment that are directly

4

and demonstrably related to the operation of a cannabis establishment and similar to qualifications

5

for licensure and employment standards in connection with the manufacture, distribution or sale of

6

alcoholic beverages as regulated under title 3 of the general laws; provided, that a criminal

7

conviction relating solely to the possession of marijuana or cannabis shall not automatically

8

disqualify an individual or otherwise affect eligibility for employment or licensure in connection

9

with a cannabis establishment pursuant to § 21-28.11-12.1;

10

     (5) Identification of factors to be evaluated in the approval and certification of social equity

11

applicants and establishment of procedures and policies to promote and encourage full participation

12

in the regulated cannabis industry by people from communities that have previously been

13

disproportionately harmed by cannabis prohibition and enforcement;

14

     (6) Standards for the payment or reporting of licensure fees and taxes;

15

     (7) Requirements for the information to be furnished by a licensee to the licensee's

16

employees;

17

     (8) Requirements for fingerprinting or other method of identification of an applicant for a

18

license or a licensee and the employees of licensees;

19

     (9) Procedures and grounds for the revocation or suspension of a license or registration;

20

     (10) Minimum uniform standards of accounting procedures;

21

     (11) Requirements for record keeping by cannabis establishments and procedures to track

22

cannabis cultivated, processed, manufactured, delivered or sold by cannabis establishments;

23

     (12) Minimum standards for the requirement that all licensees possess and operate an

24

interoperable publicly available application programming interface seed-to-sale tracking system

25

sufficient to ensure the appropriate track and trace of all cannabis cultivated, processed or

26

manufactured pursuant to this chapter;

27

     (13) Standards to leverage seed-to-sale tracking technology which may allow for the

28

appropriate transfer or acquisition of cannabis seeds, clones, cuttings, plants or plant tissue between

29

medical and nonmedical establishments after notification of the transfer provided to the

30

commission;

31

     (14) Registration requirements for employees of cannabis establishments;

32

     (15) Requirements that all cannabis establishment employees be properly trained in the

33

performance of their duties as necessary;

34

     (16) Minimum security requirements for licensees sufficient to deter and prevent theft and

 

LC003594 - Page 15 of 115

1

unauthorized entrance into areas containing cannabis, which may include ,but not be limited to, the

2

use of security personnel, security cameras, or alarms;

3

     (17) Minimum standards for liability insurance coverage or requirements that a certain

4

monetary sum be placed in escrow to be expended for potential liabilities;

5

     (18) Requirements and procedures, utilizing best practices, to prevent the sale, delivery or

6

transfer of cannabis to persons under twenty-one (21) years of age, or the purchase of cannabis on

7

behalf of a person under twenty-one (21) years of age to include, but not limited to, the

8

establishment of age verification procedures;

9

     (19) Health and safety standards, established in consultation with the department of health,

10

for the cultivation, processing, manufacturing and distribution of cannabis, including standards

11

regarding sanitation for the preparation, storage, handling and sale of food products, including

12

compliance with state sanitation requirements, and health inspections; provided, however, that the

13

authority to promulgate regulations pertaining to the use of pesticides shall remain with the

14

department of environmental management pursuant to the provisions of chapter 25 of title 23;

15

     (20) Requirements for the packaging of cannabis and cannabis products that shall, at a

16

minimum:

17

     (i) Require the most current consumer product safety commission standards, set forth in 16

18

C.F.R. 1700 et seq.;

19

     (ii) Protect children from accidently ingesting cannabis or cannabis products, including by

20

making packaging certified child-resistant and resealable;

21

     (iii) Require the separation of each serving within a package containing multiple servings

22

shall be furnished in a manner that allows consumers and cardholders to easily identify a single

23

serving;

24

     (iv) Prohibit the use of bright colors, cartoon characters and other features designed to

25

appeal to minors;

26

     (v) Ensure that packaging is opaque or plain in design;

27

     (vi) Limit each serving size to no greater than five milligrams (5 mg.) of delta-9-

28

tetrahydrocannabinol (Δ9-THC); and

29

     (vii) Prohibit any packaging that imitates or has a semblance to any existing branded

30

consumer products, including foods and beverages that do not contain cannabis;

31

     (21) Requirements for the labeling of a package containing cannabis or cannabis products

32

that shall, at a minimum, include:

33

     (i) A symbol or other easily recognizable mark issued by the commission that indicates the

34

package contains cannabis or a cannabis product;

 

LC003594 - Page 16 of 115

1

     (ii) A symbol or other easily recognizable mark issued by the commission on the package

2

indicating to children that the product is harmful to children;

3

     (iii) The name and contact information of the cannabis cultivator or the cannabis product

4

manufacturer who produced the cannabis or cannabis product;

5

     (iv) The results of sampling, testing and analysis conducted by a licensed independent

6

testing laboratory;

7

     (v) A seal certifying the cannabis meets such testing standards;

8

     (vi) A unique batch number identifying the production batch associated with

9

manufacturing, processing, and cultivating;

10

     (vii) A list of ingredients and possible allergens;

11

     (viii) The amount of delta-9-tetrahydrocannabinol (Δ9-THC) in the package and in each

12

serving of a cannabis product as expressed in absolute terms and as a percentage of volume;

13

     (ix) The number of servings in a package if there are multiple servings;

14

     (x) A use-by date, if applicable; and

15

     (xi) The following statement, including capitalization: ''This product has not been analyzed

16

or approved by the FDA. There is limited information on the side effects of using this product, and

17

there may be associated health risks. Cannabis use during pregnancy and breast-feeding may pose

18

potential harm. It is against the law to drive or operate machinery when under the influence of this

19

product. KEEP THIS PRODUCT AWAY FROM CHILDREN.'' The commission may alter or

20

amend this statement by regulation after consultation with the department of health in accordance

21

with industry standards;

22

     (22) Requirements for advertising, marketing and branding of cannabis and cannabis

23

products that shall, at a minimum, include, but shall not be limited to:

24

     (i) A prohibition on advertising, marketing and branding in such a manner that is deemed

25

to be deceptive, false or misleading;

26

     (ii) A prohibition on advertising, marketing and branding by means of television, radio,

27

Internet, billboard or print publication unless at least eighty-five percent (85%) of the audience is

28

reasonably expected to be twenty-one (21) years of age or older, as determined by reliable, up-to-

29

date audience composition data;

30

     (iii) A prohibition on advertising, marketing and branding that utilizes statements, designs,

31

representations, pictures or illustrations that portray or purports to portray anyone less than twenty-

32

one (21) years of age;

33

     (iv) A prohibition on advertising, marketing and branding, including, but not limited to,

34

mascots, cartoons, brand sponsorships and celebrity endorsements, that is deemed to appeal to a

 

LC003594 - Page 17 of 115

1

person less than twenty-one (21) years of age;

2

     (v) A prohibition on advertising, marketing and branding, including statements by a

3

licensee, that makes any false or misleading statements concerning other licensees and the conduct

4

and products of such other licensees;

5

     (vi) A prohibition on advertising, marketing and branding through certain identified

6

promotional items as determined by the commission, including giveaways, coupons or ''free'' or

7

''donated'' cannabis;

8

     (vii) A prohibition on advertising, marketing and branding by a licensee that asserts its

9

products are safe, other than labeling required pursuant to this chapter;

10

     (viii) A reasonable prohibition on timing and use of illuminated external signage, which

11

shall comply with all local ordinances and requirements, and a prohibition on neon signage;

12

     (ix) A prohibition of the use of vehicles equipped with radio or loud speakers for the

13

advertising of cannabis;

14

     (x) A prohibition on the use of radio or loudspeaker equipment in any cannabis

15

establishment for the purpose of attracting attention to the sale of cannabis;

16

     (xi) An allowance that a licensee may sponsor a charitable, sporting or similar event, but a

17

prohibition of advertising, marketing and branding at, or in connection with, such an event unless

18

at least eight-five percent (85%) of the audience is reasonably expected to be twenty-one (21) years

19

of age or older, as determined by reliable, up-to-date audience composition data;

20

     (xii) A requirement that the website of a cannabis establishment shall verify that the entrant

21

is at least twenty-one (21) years of age;

22

     (xiii) A prohibition on the use of unsolicited pop-up advertisements on the Internet; and

23

     (xiv) A requirement that all advertising, marketing or branding materials for cannabis and

24

cannabis products contain a standard health warning developed by the department of health;

25

     (23) Requirements for the safe disposal of excess, contaminated, adulterated or deteriorated

26

cannabis, which shall consider policies which promote the recycling of such waste, including, but

27

not limited to, recycled industrial products;

28

     (24) Procedures and requirements to enable the transfer of a license for a cannabis

29

establishment to another qualified person or to another suitable location in compliance with the

30

provisions of § 21-28.11-10.2 following notification and approval by the commission; provided

31

however, that a license issued to a social equity applicant shall only be transferred to another

32

qualified social equity applicant, and a license issued to a workers' cooperative applicant shall only

33

be transferred to another qualified workers' cooperative applicant.

34

     (25) Requirements to establish a process allowing the commission to order a prohibition

 

LC003594 - Page 18 of 115

1

on the sale of a cannabis product found especially appealing to persons under twenty-one (21) years

2

of age;

3

     (26) Requirements to establish a process allowing a cannabis product manufacturer to

4

voluntarily submit a product, its packaging and intended marketing to the commission for

5

preliminary determination whether the product is especially appealing to persons under twenty-one

6

(21) years of age;

7

     (27) Requirements that prohibit cannabis product manufacturers from altering or utilizing

8

commercially-manufactured food products when manufacturing cannabis products unless the food

9

product was commercially manufactured specifically for use by the cannabis product manufacturer

10

to infuse with cannabis; provided, however, that a commercially-manufactured food product may

11

be used as an ingredient in a cannabis product if: (i) It is used in a way that renders it unrecognizable

12

as the commercial food product in the cannabis product; and (ii) There is no statement or

13

advertisement indicating that the cannabis product contains the commercially-manufactured food

14

product;

15

     (28) Energy and environmental standards for licensure and licensure renewal of cannabis

16

establishments licensed as a cannabis cultivator or cannabis product manufacturer;

17

     (29) Limits for cannabis product serving sizes, doses, and potency, including, but not

18

limited to, regulations which provide requirements for reasonable tetrahydrocannabinol (THC)

19

potency limits for each type of cannabis product sold by a licensee and reasonable potency or dosing

20

limits for cannabis concentrates and edible products, that shall apply for adult use cannabis only.

21

     (30) The testing and safety of cannabis and cannabis products, including but not limited to,

22

regulations promulgated by the commission in consultation with the department of health, as

23

applicable which:

24

     (i) License and regulate the operation of cannabis testing facilities, including requirements

25

for equipment, training, and qualifications for personnel;

26

     (ii) Set forth procedures that require random sample testing to ensure quality control,

27

including, but not limited to, ensuring that cannabis and cannabis products are accurately labeled

28

for tetrahydrocannabinol (THC) content and any other product profile;

29

     (iii) Establish testing for residual solvents or toxins; harmful chemicals; dangerous molds

30

or mildew; filth; and harmful microbials such as E. coli or salmonella and pesticides, and any other

31

compounds, elements, or contaminants;

32

     (iv) Require all cannabis and cannabis products must undergo random sample testing at a

33

licensed cannabis testing facility or other laboratory equipped to test cannabis and cannabis

34

products that has been approved by the commission;

 

LC003594 - Page 19 of 115

1

     (v) Require any products which fail testing be quarantined and/or recalled and destroyed

2

in accordance with regulations;

3

     (vi) Allow for the establishment of other quality assurance mechanisms which may include

4

but not be limited to the designation or creation of a reference laboratory, creation of a secret

5

shopper program, round robin testing , or any other mechanism to ensure the accuracy of product

6

testing and labeling;

7

     (vii) Require cannabis establishment licensees and cannabis products to comply with any

8

applicable food safety requirements determined by the commission and/or the department of health;

9

     (viii) Include any additional requirements deemed necessary by the commission as

10

determined in consultation with the department of health; and

11

     (ix) Allow the commission, in coordination with the department of health, at their

12

discretion, to temporarily remove, or phase in, any requirement for laboratory testing if it finds that

13

there is not sufficient laboratory capacity for the market;

14

     (31) Standards and restrictions for cannabis manufacturing and processing which shall

15

include, but not be limited to, requirements that cannabis processors;

16

     (i) Comply with all applicable building and fire codes;

17

     (ii) Receive approval from the state fire marshal’s office for all forms of manufacturing

18

that use a heat source or flammable solvent;

19

     (iii) Require any cannabis processor that manufactures edibles of cannabis infused food

20

products to comply with all applicable requirements and regulations issued by the department of

21

health’s office of food safety; and

22

     (iv) Comply with any other requirements deemed suitable by the commission;

23

     (32) Standards for manufacturing or extracting cannabinoid oils or butane hash oil; and

24

     (33) General operating requirements, minimum oversight, and any other activities,

25

functions, or aspects of a cannabis establishment licensee in furtherance of creating a stable,

26

regulated cannabis industry and mitigating its impact on public health and safety;

27

     (34) Rules and regulations based on federal law provided those rules and regulations are

28

designed to comply with federal guidance and mitigate federal enforcement against the cannabis

29

establishments and adult use establishments authorized, licensed and operated pursuant to this

30

chapter;

31

     (35) Coordinate and implement the transition and transfer of regulatory authority of

32

medical marijuana from the department of business regulation to the commission;

33

     (36) Requirements that patients with out-of-state medical marijuana cards must also

34

possess and produce a valid government issued identification demonstrating residency in the same

 

LC003594 - Page 20 of 115

1

state jurisdiction that issued the medical marijuana card.

2

     (c) Regulations made pursuant to this section shall not:

3

     (1) Prohibit the operation of a cannabis establishment either expressly or through

4

regulations that make operation of a cannabis establishment unreasonable and impracticable;

5

     (2) Require an adult retail purchaser to provide a cannabis retailer with identifying

6

information other than proper identification to determine the customer's age, and shall not require

7

the cannabis retailer to acquire or record personal information about customers other than

8

information typically required in a retail transaction;

9

     (3) Except as provided pursuant to chapter 28.6 of title 21, authorize a cannabis retailer,

10

medical marijuana treatment center or a hybrid cannabis retailer to operate at a shared location with

11

a cultivator;

12

     (4) Authorize a cannabis establishment to transfer or acquire cannabis seeds, clones,

13

cuttings, plants or plant tissue to or from another cannabis establishment unless notice of the

14

transfer or acquisition is provided to the commission; or

15

     (5) Prohibit cannabis establishments from using inorganic cultivation methods.

16

     (d) Reports. In furtherance of the intent of this chapter:

17

     (1) The commission shall annually submit a complete and detailed report of the

18

commission's activities, including a review of the implementation and enforcement of this chapter

19

and the governance structure established in this chapter, not more than ninety (90) days after the

20

end of the fiscal year to the governor, the attorney general, the treasurer, the speaker of the house,

21

and the president of the senate.

22

     (2) The commission shall annually review the tax rates established by this chapter and may

23

make recommendations to the general assembly, as appropriate, regarding any changes to the tax

24

rates that further the intent of this chapter.

25

     (3) Each fiscal year the commission shall submit an annual finance plan to the governor,

26

the speaker of the house and the president of the senate, and updates to such plan.

27

     (4) The commission may study cannabis commerce and make recommendations to the

28

general assembly regarding changes to existing law that further the intent of this chapter by

29

reporting those recommendations with the governor, the speaker of the house, and the president of

30

the senate.

31

     (5) The commission may conduct an analysis and report to the general assembly if it finds

32

that conditions are appropriate for the issuance of additional types or classes of licenses to operate

33

cannabis-related businesses, including, but not limited to:

34

     (i) Licenses that authorize limited or restricted cultivation, processing, manufacture,

 

LC003594 - Page 21 of 115

1

possession or storage of cannabis or cannabis products, limited delivery of cannabis or cannabis

2

products to consumers;

3

     (ii) Licenses that authorize the consumption of cannabis or cannabis products on the

4

premises where sold;

5

     (iii) Licenses that authorize the consumption of cannabis at special events in limited areas

6

and for a limited time; and

7

     (iv) Licenses intended to facilitate scientific research or education.

8

     (e) The commission shall administer and enforce the provisions of this chapter and the rules

9

and regulations relating to licensing in this chapter and in its discretion and where appropriate may

10

delegate and authorize various administration and enforcement powers and duties to the cannabis

11

office.

12

     (f) The commission shall investigate, in conjunction with the department of health, the

13

effects of cannabis and cannabis products with a high potency of tetrahydrocannabinol on the

14

human body and recommend whether there should be additional restrictions on the potency of

15

tetrahydrocannabinol in cannabis and cannabis products.

16

     (g) The commission shall be subject to all the provisions of chapter 35 of title 42.

17

     (h) The commission shall cause to be deposited all fees collected and monetary penalties

18

collected pursuant to this chapter in the social equity assistance fund established pursuant to § 21-

19

28.11-31, except for medical compassion center license fees pursuant to § 21-28.6-12.

20

     (i) The commission shall work collaboratively with other state agencies and departments

21

to ensure that the production and distribution of cannabis is effectively regulated in the state in

22

furtherance of this chapter.

23

     21-28.11-6. Cannabis advisory board.

24

     (a) There is hereby established a cannabis advisory board, which is directed to work in

25

collaboration with the commission and the administrator of the cannabis office to advise and issue

26

recommendations on the use, commerce, regulation and effects of adult-use and medical cannabis

27

within the state. The advisory board shall additionally provide recommendations to the commission

28

regarding the administration and distribution of the social equity assistance fund established

29

pursuant to § 21-28.11-31.

30

     (b) Membership. The advisory board shall consist of eleven (11) voting members, and eight

31

(8) non-voting members.

32

     (1) The board shall consist of the following non-voting members: the secretary of

33

commerce or designee, the director of the department of labor and training or designee, the director

34

of the department of health or designee, the commissioner of education or designee, the

 

LC003594 - Page 22 of 115

1

superintendent of public safety or designee, the director of the department of business regulation

2

or designee, the secretary of Executive Office of Health and Human Services (EOHHS) or

3

designee, and a representative from the University of Rhode Island College of Pharmacy selected

4

by the Commission.

5

     (2) The board shall consist of the following voting members: a social equity officer, who

6

shall be appointed by the governor and serve as chair of the advisory board; four (4) additional

7

members to be appointed by the governor, one of whom shall represent the cannabis laboratory

8

testing industry, one of whom shall represent the cannabis cultivation industry, one of whom shall

9

represent the cannabis retail industry, and one of whom shall be appointed in accordance with

10

subsection (e) herein; three (3) additional members to be appointed by the speaker of the house in

11

accordance with subsection (e) herein; and three (3) additional members to be appointed by the

12

president of the senate in accordance with subsection (e) herein.

13

     (c) Term of voting members. The voting members shall be appointed to serve three (3) year

14

terms or until a successor is appointed. In the event of vacancy, the vacancy shall be filled in the

15

manner of the original appointment for the remainder of the term.

16

     (d) Compensation. The appointed members and representatives shall receive no

17

compensation for their services.

18

     (e) Representation. The members of the advisory board appointed by the governor, the

19

speaker of the house and the president of the senate pursuant to the provisions of the chapter shall

20

to the extent possible be individuals with expertise in the following areas: public and behavioral

21

health, substance use disorder treatment, effective rehabilitative treatment for adults and juveniles,

22

homelessness and housing, economic development, criminal justice, law enforcement and drug

23

policy. Further, the advisory board shall include residents from communities most impacted by

24

cannabis prohibition, individual with prior drug convictions, the formerly incarcerated, and

25

representatives of organizations servicing communities impacted by past federal and state drug

26

policies.

27

     (f) Quorum. To take action at a meeting, a majority of voting members of the board must

28

be present and voting to constitute a quorum.

29

     (g) Role and responsibilities. The advisory board shall:

30

     (1) Consider all matters submitted to the board by the cannabis control commission;

31

     (2) Advise and make recommendations to the commission on the preparation and

32

promulgation of guidelines, rules and regulations and any changes to guidelines, rules and

33

regulations that the advisory board deems fundamental or necessary for the commission's review

34

and consideration;

 

LC003594 - Page 23 of 115

1

     (3) Provide analysis and recommendations to the commission relating to the administration

2

and distribution of the social equity assistance fund established pursuant to § 21-28.11-31;

3

     (4) Conduct all meetings in compliance with chapter 46 of title 42 (the "open meetings

4

act"); and

5

     (5) Report the findings, analysis, recommendations and conclusions adopted and approved

6

by the board to the commission within thirty (30) days of adoption and approval.

7

     (h) Subcommittees. The chair may appoint subcommittees in order to develop and report

8

recommendations and to expedite the work of the board; provided, however, that the chair shall

9

appoint:

10

     (1) A subcommittee on public health to develop recommendations on: products, labelling,

11

marketing, advertising, related public health issues; potency, which may include a recommended

12

maximum limit for individual servings of cannabis products; and packaging, which may include

13

the development and implementation of a public health warning to appear on cannabis products;

14

     (2) A subcommittee on public safety and community mitigation to develop

15

recommendations on law enforcement, property, business, consumer, and any other issues that may

16

have an affect on the locality of the cannabis establishment and the surrounding environment;

17

     (3) A subcommittee on the cannabis industry to develop recommendations on cultivation,

18

processing, manufacturing, transportation, distribution, seed-to-sale tracking and market stability;

19

     (4) A subcommittee on market participation to develop recommendations on minority and

20

veteran-owned businesses, local agriculture and growing cooperatives; and

21

     (5) A subcommittee on social equity to develop recommendations on remedying the harm

22

to individuals directly and adversely impacted by the past enforcement of cannabis-related laws.

23

     21-28.11-7. Licensed cannabis cultivators.

24

     (a) Except as provided pursuant to the provisions of subsection (b) of this section or § 21-

25

28.11-8, there shall be a moratorium on the issuance of new cannabis cultivator licenses for two (2)

26

years following the final issuance of the commission's rules and regulations pursuant to the

27

provisions of this chapter. This moratorium shall not apply to cannabis cultivators licensed pursuant

28

to chapter 28.6 of title 21 on or before enactment of this chapter.

29

     (b) On August 1, 2022, and thereafter, any medical marijuana cultivator licensed or

30

approved pursuant to the provisions of § 21-28.6-16, upon payment of an annual license fee in an

31

amount to be determined by the commission and promulgated by rules and regulations, the fee to

32

be deposited in the social equity fund, shall be permitted to cultivate cannabis for both adult use

33

and medical use. Sale of the cultivated cannabis shall me made directly to a licensee pursuant to

34

the provisions of this chapter and chapter 28.6 of title 21, subject to the following conditions:

 

LC003594 - Page 24 of 115

1

     (1) The cultivator must be in good standing and maintain the cultivator license with the

2

department pursuant to the provisions of chapter 28.6 of title 21; and

3

     (2) The cultivator must make good faith efforts to ensure the adult use cannabis production

4

portion of the cultivation operation has no significant adverse effect on the medical marijuana

5

program and patient needs.

6

     (c) During the moratorium pursuant to this section, the commission with the assistance of

7

the advisory board, as required, shall submit a report to the general assembly which evaluates the

8

cultivation of adult use and medical cannabis. The report shall consider factors, including, but not

9

limited to:

10

     (1) Cultivation and production history;

11

     (2) Tax payment history;

12

     (3) Existing inventory and inventory history;

13

     (4) Sales contracts;

14

     (5) Current and future projected market conditions; and

15

     (6) Any other factors relevant to ensuring responsible cultivation, production, and

16

inventory management for both medical and adult use cannabis.

17

     (d) Upon expiration of the moratorium pursuant to this section the commission may adopt

18

rules and regulations authorizing issuance of additional cultivator licenses; provided, however, a

19

cultivator's canopy shall not exceed ten thousand square feet (10,000 ft2). In determining whether

20

to issue additional cultivator licenses, the cannabis control commission shall consider the findings

21

of the report submitted pursuant to subsection (c) of this section.

22

     (e) For the purposes of this section "canopy" means the total surface area within a

23

cultivation area that is dedicated to the cultivation of mature cannabis plants. The surface area of

24

the canopy must be calculated in square feet and measured using the outside boundaries of the area

25

and must include all of the area within the boundaries. If the surface area of the canopy consists of

26

noncontiguous areas, each component area must be separated by identifiable boundaries. If a tiered

27

or shelving system is used in the cultivation area, the surface area of each tier or shelf must be

28

included in calculating the area of the canopy. The canopy does not include the areas within the

29

cultivation area that are used to cultivate immature cannabis plants and seedlings and that are not

30

used at any time to cultivate mature cannabis plants.

31

     (f) To qualify for issuance of any cannabis cultivator license under subsection (d), an

32

applicant shall satisfy all requirements and qualifications established by the commission to include

33

but not limited to:

34

     (1) Apply for a license in a manner prescribed by the commission;

 

LC003594 - Page 25 of 115

1

     (2) Provide proof that the applicant is twenty-one (21) years of age or older and is a resident

2

of the state;

3

     (3) Undergo a criminal record background check pursuant to § 21-28.11-12.1 and on any

4

terms established by the commission;

5

     (4) Provide proof that the applicant is current with and in compliance with all obligations

6

required by the division of taxation, including filings and payment of taxes;

7

     (5) Has provided a nonrefundable application fee as determined by the commission; and

8

     (6) Shall consent and be subject to inspections by the commission for the purposes of

9

ensuring and enforcing compliance with this chapter and all rules and regulations promulgated

10

pursuant to this chapter; and

11

     (7) Prior to the issuance of any license and for any period of renewal, the applicant shall

12

submit an annual license fee pursuant to subsection (b) of this section to be deposited in the social

13

equity fund.

14

     (g) The commission may adjust the application fee or annual license fee pursuant to the

15

commission's rulemaking authority and in accordance with the provisions of chapter 35 of title 42.

16

     (h) Every cannabis plant possessed by a licensed cannabis cultivator shall be catalogued in

17

a seed-to-sale inventory tracking system. The commission shall review the current seed-to-sale

18

tracking system utilized pursuant to chapter 28.6 of title 21 and shall promulgate new or additional

19

regulations as it deems appropriate.

20

     (i) Notwithstanding any other provisions of the general laws, the manufacture of cannabis

21

using a solvent extraction process that includes the use of a compressed, flammable gas as a solvent

22

by a licensed cannabis cultivator shall not be subject to the protections of this chapter.

23

     (j) Cannabis cultivators shall sell cannabis only to an entity licensed pursuant to the

24

provisions of this chapter or chapter 28.6 of title 21.

25

     (k) Cannabis cultivators shall be licensed to grow cannabis only at a location or locations

26

registered with the cannabis commission. The commission may promulgate regulations governing

27

locations where cultivators are authorized to grow. Cannabis cultivators shall abide by all local

28

ordinances, including zoning ordinances.

29

     (l) As a condition of licensing, cannabis cultivators shall consent and be subject to

30

inspection by the commission for the purposes of ensuring and enforcing compliance with this

31

chapter and chapter 28.6 of title 21, all rules and regulations promulgated pursuant to this chapter,

32

and the provisions of § 28-5.1-14.

33

     (m) Persons issued cultivator licenses shall be subject to the following:

34

     (1) A licensed cannabis cultivator shall notify and request approval from the commission

 

LC003594 - Page 26 of 115

1

of any change in his or her name or address within ten (10) days of the change. A licensed cannabis

2

cultivator who fails to notify the commission of any of these changes is responsible for a civil

3

infraction, punishable by a fine of no more than one hundred fifty dollars ($150), or other penalty

4

as determined by the commission.

5

     (2) When a licensed cannabis cultivator notifies the commission of any changes listed in

6

this subsection, the commission shall issue the licensed cannabis cultivator a new license

7

identification document after the commission approves the changes and receives from the licensee

8

payment of a fee specified in regulations.

9

     (3) If a licensed cannabis cultivator loses his or her license or certification document, he or

10

she shall notify the commission and submit a fee specified in regulation within ten (10) days of

11

losing the document. The commission shall issue a new license document with a new random

12

identification number, upon receipt of payment of a fee promulgated in the rules and regulations

13

not to exceed the amount of one hundred dollars ($100).

14

     (4) A licensed cannabis cultivator has a continuing duty to notify the commission of any

15

criminal conviction(s) that occurs after the issuance of a license or registration. A criminal

16

conviction may not automatically result in suspension or revocation of a license, but shall be subject

17

to § 21-28.11-12.1. The commission may suspend and/or revoke his or her license after the

18

notification, pending a final determination of disqualification pursuant to § 21-28.11-12.1.

19

     (5) If a licensed cannabis cultivator violates any provision of this chapter or regulations

20

promulgated hereunder as determined by the commission, his or her issued license may be

21

suspended and/or revoked.

22

     (n) Immunity.

23

     (1) No licensed cannabis cultivator shall be subject to: arrest; prosecution; search or

24

seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and subsection (f)(6) of

25

this section; or penalty in any manner, or denied any right or privilege, including, but not limited

26

to, civil penalty or disciplinary action by a business, occupational, or professional licensing board

27

or entity, solely for acting in accordance with this chapter, chapter 28.6 of title 21 and rules and

28

regulations promulgated by the commission.

29

     (2) No principal officers, board members, agents, volunteers, or employees of a licensed

30

cannabis cultivator shall be subject to arrest; prosecution; search or seizure, except as authorized

31

pursuant to §§ 21-28.11-20 and 21-28.11-27 and subsection (f)(6) of this section; or penalty in any

32

manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary

33

action by a business, occupational, or professional licensing board or entity, solely for working for

34

or with a licensed cannabis cultivator to engage in acts permitted by this chapter, chapter 28.6 of

 

LC003594 - Page 27 of 115

1

title 21 and rules and regulations promulgated by the commission.

2

     (3) No state employee or commission member shall be subject to arrest; prosecution; search

3

or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27; or penalty in any

4

manner, or denied any right or privilege, including, but not limited to, civil penalty, disciplinary

5

action, termination, or loss of employee or pension benefits, for any and all conduct that occurs

6

within the scope of his or her employment regarding the administration, execution, and/or

7

enforcement of this chapter, chapter 28.6 of title 21 and rules and regulations promulgated by the

8

commission, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.

9

     (o) Nothing in this section shall be construed as authorizing a cannabis cultivator to transfer

10

or sell cannabis directly to a consumer. A direct sale or transfer from a cannabis cultivator to a

11

consumer is prohibited and shall be grounds for revocation of license and criminal prosecution.

12

     (p) A cannabis cultivator and all agents and employees of the cannabis cultivator shall

13

comply with all rules adopted by the commission and other applicable laws.

14

     (q) No cannabis or cannabis product shall be sold or otherwise marketed pursuant to this

15

chapter that has not first been tested by an independent testing laboratory and determined to meet

16

the commission's testing protocols issued pursuant to § 21-28.11-11. Cannabis cultivators shall be

17

subject to any regulations promulgated by the commission that specify how marijuana shall be

18

tested, including, but not limited to, potency, cannabinoid profile and contaminants. Cannabis

19

cultivators shall be subject to any product labeling requirements promulgated by the commission

20

or otherwise required by law.

21

     (r) License required. No person or entity shall engage in activities described in this section

22

without a cultivator license issued by the commission pursuant to this chapter or by department of

23

business regulation pursuant to chapter 28.6 of title 21.

24

     21-28.11-8. Moratorium report.

25

     (a) If the commission determines that the moratorium on issuing cultivator licenses is

26

preventing an adequate supply of cannabis to fulfill the market demand pursuant to chapters 28.6

27

and 28.11 of title 21 then the commission shall report the basis of the determination to the speaker

28

of the house, the president of the senate and the governor.

29

     (b) No later than May 1, 2024, the commission shall conduct and deliver to the governor,

30

the speaker of the house and the president of the senate, a study relating to the effect the moratorium

31

imposed pursuant to § 21-28.11-7 has impacted on the availability of cannabis for medical

32

marijuana and adult use sales, and the projected need for the issuance of additional cultivator

33

licenses to satisfy projected market needs.

34

     21-28.11-9. Cannabis product manufacturer or wholesaler.

 

LC003594 - Page 28 of 115

1

     (a) A cannabis product manufacturer or processor or wholesaler that does not hold a

2

cannabis cultivator's license shall have a cannabis product manufacturer's license issued by the

3

commission. A cannabis product manufacturer licensee may purchase cannabis from cultivators for

4

processing and shall only transfer or sell cannabis to other entities licensed pursuant to this chapter

5

or chapter 28.6 of title 21. A cannabis product manufacturer's licensee or processor or wholesaler

6

shall report to the commission, on forms approved by the commission, the purchase or acquisition

7

and the sale or transfer of all cannabis and cannabis products.

8

     (b) To qualify and hold a cannabis product manufacturer's license under this section the

9

applicant shall satisfy all qualifications established by the commission to include, but not be limited

10

to:

11

     (1) Apply for a license in a manner prescribed by the commission;

12

     (2) Provide proof that the applicant is twenty-one (21) years of age or older and is a resident

13

of the state;

14

     (3) Undergo a criminal record background check pursuant to § 21-28.11-12.1 and on any

15

terms established by the commission;

16

     (4) Provide proof that the applicant is current and in compliance with all obligations for

17

filings and payments for taxes with the division of taxation;

18

     (5) Has provided a nonrefundable application fee as determined by the commission and

19

promulgated by rules and regulations; and

20

     (6) Prior to issuance of any license and for any period of renewal, the applicant shall submit

21

an annual license fee as determined by the commission and promulgated by rules and regulations

22

to be deposited in the social equity fund.

23

     (c) A cannabis product manufacturer or processor or wholesaler and all agents and

24

employees shall comply with all rules adopted by the commission and all applicable laws.

25

     (d) The commission may adjust the application fee or annual license fee pursuant to the

26

commission's rulemaking authority and in accordance with the provisions of chapter 35 of title 42.

27

     (e) As a condition of licensing, cannabis product manufacturers or processors or

28

wholesalers shall consent and be subject to inspections by the commission for the purposes of

29

ensuring and enforcing compliance with this chapter and all rules and regulations promulgated

30

pursuant to this chapter, and pursuant to the provisions of § 21-28.11-20.

31

     (f) Nothing in this section shall be construed as authorizing a cannabis product

32

manufacturer or processor or wholesaler to transfer or sell cannabis to a consumer. A direct sale or

33

transfer from a cannabis product manufacturer licensee to a consumer is prohibited.

34

     (g) No cannabis or cannabis product shall be sold or otherwise marketed pursuant to this

 

LC003594 - Page 29 of 115

1

chapter that has not first been tested by an independent testing laboratory and determined to meet

2

the commission's testing protocols issued pursuant to § 21-28.11-11.

3

     (h) Persons issued cannabis product manufacturer licenses shall be subject to the following:

4

     (1) A licensed cannabis product manufacturer shall notify and request approval from the

5

commission of any change in his or her name or address within ten (10) days of the change. A

6

licensed cannabis product manufacturer who fails to notify the commission of any of these changes

7

is responsible for a civil infraction, punishable by a fine of no more than one hundred fifty dollars

8

($150) or other penalty as determined by the commission.

9

     (2) When a licensed cannabis product manufacturer notifies the commission of any changes

10

listed in this subsection (h), the commission shall issue the licensed cannabis product manufacturer

11

a new registry identification document after the department approves the changes and receives from

12

the licensee payment of a fee specified in regulation.

13

     (3) If a licensed cannabis product manufacturer loses his or her document, he or she shall

14

notify the commission and submit a fee specified in regulation not to exceed one hundred dollars

15

($100), within ten (10) days of losing the document. The commission shall issue a new license with

16

a new random identification number.

17

     (4) A licensed cannabis product manufacturer has a continuing duty to notify the

18

commission of any criminal conviction(s) that occur after the issuance of a license or registration.

19

A criminal conviction relating solely to a cannabis offense shall not automatically result in

20

suspension or revocation of a license, but shall be subject to § 21-28.11-12.1;

21

     (5) If a licensed cannabis product manufacturer violates any provision of this chapter or

22

regulations promulgated hereunder as determined by the commission, his or her issued license may

23

be suspended and/or revoked in addition to any other enforcement action.

24

     (i) Immunity.

25

     (1) No licensed cannabis product manufacturer shall be subject to: arrest; prosecution;

26

search or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by

27

subsection (e) of this section; or penalty in any manner, or denied any right or privilege, including,

28

but not limited to, civil penalty or disciplinary action by a business, occupational, or professional

29

licensing board or entity, solely for acting in accordance with this chapter, chapter 28.6 of title 21

30

and rules and regulations promulgated by the commission.

31

     (2) No principal officers, board members, agents, volunteers, or employees of a licensed

32

cannabis product manufacturer or wholesaler shall be subject to arrest; prosecution; search or

33

seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (e) of

34

this section; or penalty in any manner, or denied any right or privilege, including, but not limited

 

LC003594 - Page 30 of 115

1

to, civil penalty or disciplinary action by a business, occupational, or professional licensing board

2

or entity, solely for working for or with a licensed cannabis product manufacturer or wholesaler to

3

engage in acts permitted by this chapter, chapter 28.6 of title 21 or rules and regulations

4

promulgated by the commission.

5

     (3) No state employee or commission member shall be subject to arrest; prosecution; search

6

or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (e)

7

of this section; or penalty in any manner, or denied any right or privilege, including, but not limited

8

to, civil penalty, disciplinary action, termination, or loss of employee or pension benefits, for any

9

and all conduct that occurs within the scope of his or her employment regarding the administration,

10

execution, and/or enforcement of this chapter, chapter 28.6 of title 21 and rules and regulations

11

promulgated by the commission, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to

12

this section.

13

     21-28.11-10. Hybrid cannabis retailers.

14

     (a) On or after October 1, 2022, a compassion center licensed pursuant to the provisions of

15

chapter 28.6 of title 21, upon payment to the department of business regulation of an hybrid

16

cannabis retailer fee of one hundred twenty-five thousand dollars ($125,000) to be deposited in the

17

social equity fund, is permitted to sell adult use cannabis pursuant to the provisions of this chapter

18

for a period of one year, subject to the following conditions:

19

     (1) The compassion center must be in good standing and maintain its compassion center

20

license with the department pursuant to the provisions of chapter 28.6 of title 21;

21

     (2) The compassion center shall make good faith efforts to ensure that the sale of cannabis

22

for adult use as a hybrid cannabis retailer has no significant adverse effect on the medical marijuana

23

program and patient needs; and

24

     (3) The compassion center shall post in a conspicuous place, a copy of a certificate of

25

authorization evidencing a license in good standing and payment of the hybrid cannabis retailer

26

fee.

27

     (b) During the transitional period specified in § 21-28.11-10.1, hybrid cannabis retailers

28

shall comply with directives of state agencies, departments and offices exercising regulatory

29

authority pursuant to § 21-28.11-10.1(b), and directives provided or issued by the commission to

30

protect public health and public safety. Failure to comply with a rule or directive issued pursuant

31

to provisions of this subsection and § 21-28.11-10.1(b), may result in a revocation or suspension

32

of the authorization to conduct adult use cannabis sales as ordered by the commission or the director

33

of the department of business regulation.

34

     (c) Following the final issuance of the commission's rules and regulations, hybrid cannabis

 

LC003594 - Page 31 of 115

1

retailers shall be subject to the commission's rules and regulations for all sales authorization and

2

renewals to include, but not limited to, any licensing requirements.

3

     (d) Notwithstanding any other provision of the general laws, a licensed compassion center

4

authorized as a hybrid cannabis retailer pursuant to subsection (a) of this section and the rules and

5

regulations promulgated by the commission shall be exempt from the requirements of chapter 28.6

6

of title 21 requiring registration as a not-for-profit corporation under chapter 6 title of 7, provided

7

the compassion center maintains operation as a hybrid cannabis retailer in good standing with the

8

commission. The commission may promulgate regulations or issue guidance to facilitate the

9

transition from a not-for-profit corporation to a for-profit corporation or other entity, including, but

10

not limited to, the requirement that the compassion center must update and/or resubmit licensing

11

and application documents which reflect this transfer.

12

     (e) If the commission has failed to make final issuance of the commission's rules and

13

regulations after one year from the date the compassion center has paid the fee pursuant to

14

subsection(a) of this section, then hybrid cannabis retailers shall be permitted to continue to engage

15

in adult use cannabis sales upon payment of a monthly fee to the department of business regulation

16

in the amount of ten thousand five hundred dollars ($10,500) for each month of operation following

17

the one year period provided in subsection (a) of this section. Upon final issuance of the

18

commission's rules and regulations, hybrid cannabis retailers shall comply with the provisions of

19

the rules and regulations to maintain licensing and authorization to sell adult use cannabis.

20

     (f) Upon enactment of this chapter, notwithstanding any other general law, rule or

21

regulation, no hybrid cannabis retailer shall be authorized to sell medical marijuana to any patient

22

with an out-of-state medical marijuana card who fails to possess and produce a valid government

23

issued identification demonstrating residency in the same state that issued the medical marijuana

24

card.

25

     21-28.11-10.1. Transitional period rules and regulations and transfer of authority.

26

     (a) To protect public health and public safety, upon the effective date of this chapter until

27

final issuance of the commission's rules and regulations promulgated pursuant to the provisions of

28

this chapter, there shall exist a transitional period of regulatory and enforcement authority regarding

29

the production, possession, regulation, distribution, sale and use of cannabis relating to the sale by

30

hybrid cannabis retailers of adult use cannabis pursuant to § 21-28.11-10.

31

     (b) The office of cannabis regulation shall draft proposed transitional period regulations by

32

September 1, 2022. These proposed transitional period regulations shall be submitted to the

33

commission and posted on the website of the office of cannabis regulation. During the period of

34

September 2 through September 13, 2022, the commission shall accept and consider written public

 

LC003594 - Page 32 of 115

1

comment on the proposed regulations. The transitional period regulations shall be effective upon

2

approval by the commission. The administrative procedures act, chapter 35 of title 42, shall not

3

apply to the adoption or amendment of transitional period regulations pursuant to this section.

4

     (c) The adopted transitional period regulations may be amended by the commission up

5

until the final issuance of the commission's regulations pursuant to the provisions of this chapter.

6

     (d) The transitional period regulations shall terminate and be void upon final issuance of

7

the commission's rules and regulations.

8

     (e) In no case shall the transitional period regulations be in effect beyond October 1, 2023.

9

     (f) Six (6) months following the final issuance of the commission's rules and regulations,

10

the following shall occur:

11

     (1) All powers, duties and responsibilities of the department of business regulation and the

12

office of cannabis regulation with respect to the regulation administration and enforcement of the

13

provisions of chapter 28.6 of title 21 shall be transferred to the commission or as designated by the

14

commission to the cannabis office.

15

     (2) All powers, duties and responsibilities of the department of environmental management

16

with respect to regulation, administration and enforcement of chapter 28.6 of title 21 shall be

17

transferred to the commission or as designated by the commission to the cannabis office.

18

     (3) All powers, duties and responsibilities of the department of health with respect to

19

regulation, administration and enforcement of chapter 28.6 of title 21 shall be transferred to the

20

commission or as designated by the commission to the cannabis office. except for the following:

21

     (i) Administration of registry identification cards to qualified patients; and

22

     (ii) Powers delegated to the department by the commission pursuant to rules and

23

regulations.

24

     (4) There shall be established within the department of business regulation a "cannabis

25

office" with the powers, duties and responsibilities authorized pursuant to § 21-28.11-18.1.

26

     (5) All powers exercised by state agencies, departments and offices pursuant to the

27

provisions of § 21-28.11-10.1(a) and (b) relating to transitional period authority shall cease.

28

     (g) Upon final issuance of the commission's rules and regulations, whenever the term

29

"office of cannabis regulation" appears in any general law or regulation, the term shall mean the

30

"cannabis office" as defined in this chapter.

31

     21-28.11-10.2. Cannabis retail sales.

32

     (a) In addition to the hybrid cannabis retailer certificates that may be issued pursuant to the

33

provisions of this chapter, after issuance of the final rules and regulations, the commission may

34

grant twenty-four (24) retail licenses, subject to the following restrictions:

 

LC003594 - Page 33 of 115

1

     (1) The retail licenses shall be issued pursuant to geographic zones as specified in § 21-

2

28.11-10.3.

3

     (2) No more than four (4) retail licenses exclusive of any hybrid cannabis retail certificate

4

shall be permitted in each geographic zone; and

5

     (3) Of the four (4) retail licenses in each geographic zone:

6

     (i) One shall be reserved for a workers' cooperative applicant; and

7

     (ii) One shall be reserved for a social equity applicant.

8

     (b) Minimum qualifications. To qualify for issuance of a cannabis retail sales license under

9

this section, an applicant shall satisfy all qualifications established by the commission to include,

10

but not be limited to:

11

     (1) Apply for a license in a manner prescribed by the commission;

12

     (2) Provide proof that the applicant is twenty-one (21) years of age or older and is a resident

13

of the state;

14

     (3) Undergo a criminal record background check pursuant to § 21-28.11-12.1 and on any

15

terms established by the commission;

16

     (4) Provide proof that the applicant is current and in compliance with all obligations for

17

filings and payments for taxes with the division of taxation;

18

     (5) Demonstrate that the proposed location for the retail sale of cannabis complies with

19

provisions of municipal zoning and regulations or has been approved by the municipality;

20

     (6) Paid a nonrefundable application fee as determined by the commission and promulgated

21

by rules and regulations; and

22

     (7) Prior to issuance of any license and for any period of renewal, the applicant shall pay

23

an annual fee of thirty thousand dollars ($30,000) to be deposited in the social equity fund.

24

     (e) Compliance. A cannabis retail sales licensee and all agents and employees shall comply

25

with all rules adopted by the commission and all applicable laws to include, but not limited to,

26

chapter 5 of title 28 (the "fair employment practices act").

27

     (f) Inspection. As a condition of licensing and pursuant to § 21-28.11-20, cannabis retailers

28

shall consent and be subject to inspections by the commission or designated personnel for the

29

purposes of ensuring and enforcing compliance with this chapter, all rules and regulations

30

promulgated pursuant to this chapter and all applicable laws, to include, but not be limited to, the

31

provisions of title 44 ("taxation"), chapter 28 of title 21 (the "uniform controlled substance act"),

32

and chapter 5 of title 28 (the "fair employment practices act").

33

     (g) Testing. No cannabis or cannabis product shall be sold or otherwise marketed pursuant

34

to this chapter that has not first been tested by an independent testing laboratory and determined to

 

LC003594 - Page 34 of 115

1

meet the commission's testing protocols issued pursuant to § 21-28.11-11

2

     (h) Minimum requirements. Persons issued cannabis retail licenses shall be subject to the

3

following:

4

     (1) A licensed cannabis retailer shall notify and request approval from the commission of

5

any change in his or her name or address within ten (10) days of the change. A licensed cannabis

6

retailer who fails to notify the commission of any of these changes is responsible for a civil

7

infraction, punishable by a fine of no more than one hundred fifty dollars ($150) or other penalty

8

as determined by the commission;

9

     (2) When a licensed cannabis retailer notifies the commission of any changes listed in this

10

subsection, the commission shall issue the licensed cannabis retailer a new license identification

11

document after the commission approves the changes and receives from the licensee payment of a

12

fee specified in regulation;

13

     (3) If a licensed cannabis retailer loses his or her license document, he or she shall notify

14

the commission and submit a fee specified in regulation within ten (10) days of losing the

15

document. The commission shall issue a new license document with a new random identification

16

number upon payment of a fee promulgated in the rules and regulations not to exceed one hundred

17

dollars ($100);

18

     (4) A licensed cannabis retailer has a continuing duty to notify the commission of any

19

criminal conviction(s) that occur after the issuance of a license or registration. A criminal

20

conviction shall not automatically result in suspension or revocation of a license, but shall be

21

subject to the provisions § 21-28.11-12.1;

22

     (5) If a licensed cannabis retailer violates any provision of this chapter or regulations

23

promulgated hereunder as determined by the commission, his or her issued license may be

24

suspended and/or revoked.

25

     (i) Immunity.

26

     (1) No licensed cannabis retailer shall be subject to: arrest; prosecution; search or seizure,

27

except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (f) of this

28

section; or penalty in any manner, or denied any right or privilege, including, but not limited to,

29

civil penalty or disciplinary action by a business, occupational, or professional licensing board or

30

entity, solely for acting in accordance with this chapter and rules and regulations promulgated by

31

the commission.

32

     (2) No principal officers, board members, agents, volunteers, or employees of a licensed

33

cannabis retailer shall be subject to arrest; prosecution; search or seizure, except as authorized

34

pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (f) of this section; or penalty in any

 

LC003594 - Page 35 of 115

1

manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary

2

action by a business, occupational, or professional licensing board or entity, solely for working for

3

or with a licensed cannabis retailer to engage in acts permitted by this chapter and rules and

4

regulations promulgated by the commission.

5

     (3) No state employee or commission member shall be subject to arrest; prosecution; search

6

or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (f)

7

of this section; or penalty in any manner, or denied any right or privilege, including, but not limited

8

to, civil penalty, disciplinary action, termination, or loss of employee or pension benefits, for any

9

and all conduct that occurs within the scope of his or her employment regarding the administration,

10

execution, and/or enforcement of this chapter and rules and regulations promulgated by the

11

commission, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.

12

     21-28.11-10.3. Geographic zones.

13

     For purposes of issuance of cannabis retail licenses by the commission pursuant to the

14

provisions of this chapter, the following geographic zones are established:

15

     (1) Zone 1 shall consist of the towns of Burriville, Cumberland, Glocester, North

16

Smithfield, Smithfield and the city of Woonsocket.

17

     (2) Zone 2 shall consist of the towns of Johnston, Lincoln and North Providence and the

18

cities of Central Falls and Providence.

19

     (3) Zone 3 shall consist of the towns of Coventry, Foster, Scituate, West Greenwich and

20

West Warwick.

21

     (4) Zone 4 shall consist of the towns of East Greenwich and North Kingstown and the cities

22

of Cranston and Warwick.

23

     (5) Zone 5 shall consist of the towns of Charlestown, Exeter, Hopkinton, Narragansett,

24

Richmond, South Kingstown and Westerly.

25

     (6) Zone 6 shall consist of the towns of Barrington, Bristol, Jamestown, Little Compton,

26

Middletown, New Shoreham, Portsmouth, Tiverton and Warren and the cities of East Providence,

27

Newport and Pawtucket.

28

     21-28.11-10.4. Medical marijuana program parity.

29

     (a) No later than April 1, 2024, the commission shall, in collaboration with the department

30

of health and the office of management and budget, conduct and deliver to the governor, the speaker

31

of the house of representatives, and the president of the senate a study relating to the impact of the

32

implementation of adult use cannabis in Rhode Island on the existing medical marijuana program

33

(MMP) established pursuant to chapter 28.6 of title 21. This study shall examine and make

34

recommendations relating to, without limitation, the following:

 

LC003594 - Page 36 of 115

1

     (b) The extent to which the introduction of adult use cannabis has diminished or eliminated

2

the availability of certain medical marijuana products or product types;

3

     (c) The extent to which patient cardholders in Rhode Island have experienced new or

4

greater obstacles to obtaining medical marijuana, including on the basis of price, quantity, product

5

type, or geographic location;

6

     (d) The extent to which the number of caregiver registrations and/or the number of plant

7

tag certificates issued by the commission increases or decreases; and

8

     (e) The extent to which the introduction of the new adult use cannabis tax and license fee

9

structure requires a realignment of the existing medical marijuana tax and license fee structure.

10

     21-28.11-11. Independent testing laboratories -- Licensure and oversight.

11

     (a) In consultation with the department of health, the commission shall have authority to

12

promulgate regulations to create and implement all licenses involving cannabis reference testing

13

requirements, including approval of laboratory proficiency programs and proficiency sample

14

providers, quality assurance sample providers, round robin testing and regulations establishing

15

quality control and test standardization, and create and implement additional types and classes of

16

licensed cannabis testing facilities in accordance with regulations promulgated hereunder.

17

     (b)(1) The regulations promulgated by the commission shall at a minimum provide for the

18

licensure and oversight of independent testing laboratories, and shall establish testing protocols for

19

the sampling, testing and analysis of cannabis, finished cannabis and cannabis products in

20

consultation with the department of health. Such regulations shall be based on the most recent

21

standards as issued by the United States Pharmacopeial Convention and shall address sampling and

22

analysis to characterize the cannabinoid profile and biological and chemical contaminants,

23

including, but not limited to, terpenoids, pesticides, plant growth regulators, metals,

24

microbiological contaminants, mycotoxins, and residual solvents introduced through cultivation of

25

cannabis plants and post-harvest processing and handling of cannabis, cannabis products and

26

ingredients.

27

     (2) No cannabis or cannabis product shall be sold or otherwise marketed pursuant to this

28

chapter that has not first been tested by an independent testing laboratory and determined to meet

29

the commission's testing protocols issued pursuant to subsection (a) of this section.

30

     (3) A licensed independent testing laboratory shall transport, store, possess, and test

31

cannabis in compliance with regulations promulgated by the commission. Nothing in this section

32

shall be construed as authorizing an independent testing laboratory to transfer or sell cannabis to a

33

consumer. A direct sale or transfer from an independent testing laboratory licensee to a consumer

34

is prohibited.

 

LC003594 - Page 37 of 115

1

     (4) An independent testing laboratory shall report any results indicating contamination to

2

the commission, the department of health and the department of environmental management within

3

forty-eight (48) hours of identification.

4

     (5) No laboratory agent or employee of an independent testing laboratory shall receive

5

direct or indirect financial compensation, other than such reasonable contractual fees to conduct

6

such testing, from any entity for which it is conducting testing pursuant to this chapter.

7

     (6) No individual who possesses an interest in or is a laboratory agent employed by an

8

independent testing laboratory, and no immediate family member of that individual, shall possess

9

an interest in or be employed by a cultivator, product manufacturer or retail cannabis establishment.

10

     (c) To qualify for issuance of an independent testing laboratory license under this section,

11

an applicant shall satisfy all qualifications established by the commission to include, but not be

12

limited to:

13

     (1) Apply for a license in a manner prescribed by the commission;

14

     (2) Provide proof that the applicant is twenty-one (21) years of age or older and is a resident

15

of the state;

16

     (3) Undergo a criminal record background check pursuant to § 21-28.11-12.1 and on any

17

terms established by the commission;

18

     (4) Provide proof that the applicant is current and in compliance with all obligations for

19

filings and payments for taxes with the division of taxation;

20

     (5) Provide a nonrefundable application fee as determined by the commission and

21

promulgated by rules and regulations and apply for a testing license from the commission prior to

22

testing, processing or transporting cannabis; and

23

     (6) Prior to the issuance of any license and for any period of renewal, the applicant shall

24

submit an annual license fee as determined by the commission and promulgated by rules and

25

regulations.

26

     (d) Independent testing laboratories shall be responsible for ensuring the following, as

27

related to laboratory agents:

28

     (1)A laboratory agent shall be registered with the commission prior to volunteering or

29

working at an independent testing laboratory;

30

     (2) An independent testing laboratory shall apply to the commission for a registration

31

document for each affiliated laboratory agent by submitting, at a minimum, the name, address, and

32

date of birth of the laboratory agent.

33

     (3) A laboratory agent shall undergo a criminal background check pursuant to § 21-28.11-

34

12.1 and on terms established by the commission, prior to volunteering or working at an

 

LC003594 - Page 38 of 115

1

independent testing laboratory. Laboratory agents shall also have a continuing duty to notify the

2

commission of any criminal conviction(s) that occur after the issuance of a registration document.

3

A criminal conviction shall not automatically result in suspension or revocation of registration, but

4

shall be subject to § 21-28.11-12.1;

5

     (4) An independent testing laboratory shall notify the commission within one business day

6

if a laboratory agent ceases to be associated with the laboratory, and the laboratory agent's

7

registration document shall be immediately revoked.

8

     (e) An independent testing laboratory and all agents and employees shall comply with all

9

rules adopted by the commission and all applicable laws.

10

     (f) As a condition of licensing and pursuant to the provisions of § 21-28.11-20, cannabis

11

independent testing laboratories shall consent and be subject to inspection by the commission or

12

personnel designated by the commission for the purposes of ensuring and enforcing compliance

13

with this chapter and all rules and regulations promulgated pursuant to this chapter, to include, but

14

not be limited to, the provisions of chapter 5 of title 28 (the "fair employment practices act").

15

     (g) Persons issued independent testing laboratory licenses shall be subject to the following:

16

     (1) A licensed independent testing laboratory shall notify and request approval from the

17

commission of any change in his or her name or address within ten (10) days of the change. A

18

licensed independent testing laboratory who fails to notify the commission of any of these changes

19

is responsible for a civil infraction, punishable by a fine of no more than one hundred fifty dollars

20

($150) or other penalty as determined by the commission.

21

     (2) When a licensed independent testing laboratory notifies the commission of any changes

22

listed in this subsection (g), the commission shall issue the licensed independent testing laboratory

23

a new registry identification document after the department approves the changes and receives from

24

the licensee payment of a fee specified in regulation.

25

     (3) If a licensed independent testing laboratory loses his or her license document, he or she

26

shall notify the commission and submit a fee specified in regulation not to exceed the amount of

27

one hundred dollars ($100), within ten (10) days of losing the license document. The commission

28

shall issue a new license with a new random identification number.

29

     (4) A licensed independent testing laboratory has a continuing duty to notify the

30

commission of any criminal conviction(s) of a laboratory licensee or agent that occur after the

31

issuance of a license or registration. A criminal conviction relating solely to a cannabis offense

32

shall not automatically result in suspension or revocation of a license, but shall be subject to § 21-

33

28.11-12.1;

34

     (5) If a licensed independent testing laboratory violates any provision of this chapter or

 

LC003594 - Page 39 of 115

1

regulations promulgated hereunder as determined by the commission, his or her issued license may

2

be suspended and/or revoked.

3

     (h) Immunity.

4

     (1) No licensed cannabis independent testing laboratory licensee or agent shall be subject

5

to: arrest; prosecution; search or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-

6

28.11-27 and by subsection (f) of this section; or penalty in any manner, or denied any right or

7

privilege, including, but not limited to, civil penalty or disciplinary action by a business,

8

occupational, or professional licensing board or entity, solely for acting in accordance with this

9

chapter, chapter 28.6 of title 21 and the rules and regulations promulgated by the commission.

10

     (2) No principal officers, board members, agents, volunteers, or employees of a licensed

11

cannabis independent testing laboratory shall be subject to arrest; prosecution; search or seizure,

12

except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (f) of this

13

section; or penalty in any manner, or denied any right or privilege, including, but not limited to,

14

civil penalty or disciplinary action by a business, occupational, or professional licensing board or

15

entity, solely for working for or with a licensed cannabis cultivator to engage in acts permitted by

16

this chapter, chapter 28.6 of title 21 and the rules and regulations promulgated by the commission.

17

     (3) No state employee or commission member shall be subject to arrest; prosecution; search

18

or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (f)

19

of this section; or penalty in any manner, or denied any right or privilege, including, but not limited

20

to, civil penalty, disciplinary action, termination, or loss of employee or pension benefits, for any

21

and all conduct that occurs within the scope of his or her employment regarding the administration,

22

execution, and/or enforcement of this chapter, chapter 28.6 of title 21 and the rules and regulations

23

promulgated by the commission. The provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this

24

section.

25

     21-28.11-12. Licenses for handlers and employees.

26

     (a) The commission by rule or regulation may promulgate rules and regulations to establish

27

the registration or licensing of an individual who performs work for or on behalf of a person or

28

entity licensed pursuant to the provisions of this chapter to include, but not be limited to, employees,

29

independent contractors, transporters, security personnel, quality control or testing personnel,

30

packagers and sales personnel. Individuals registered or licensed pursuant to this section shall be

31

required to comply with all rules adopted by the commission and all applicable laws.

32

     (b) Fees for registration or licensing established by rules and regulations promulgated by

33

the commission pursuant to the provisions of this section shall be set forth in the rules and

34

regulations.

 

LC003594 - Page 40 of 115

1

     21-28.11-12.1. Criminal record information -- Permitted use.

2

     (a) The commission shall require all applicants for license and registration under this

3

chapter to undergo a national criminal background check prior to issuing any license or registration.

4

The applicant shall apply to the bureau of criminal identification of the department of attorney

5

general, department of public safety division of state police, or local police department for a

6

national background check that shall include fingerprints submitted to the Federal Bureau of

7

Investigation. Upon the discovery of any criminal record information, the bureau of criminal

8

identification of the department of attorney general, department of public safety division of state

9

police, or the local police department shall inform the applicant, in writing, of the nature of the

10

criminal record information. The bureau of criminal identification of the department of attorney

11

general, department of public safety division of state police, or the local police department shall

12

also inform the commission, in writing of the nature of the criminal record information. In those

13

situations in which no criminal record information has been found, the bureau of criminal

14

identification of the department of attorney general, department of public safety division of state

15

police, or the local police department shall inform the applicant and the commission, in writing, of

16

this fact. The applicant shall be responsible for any expense associated with the national

17

background check.

18

     (b) All applicants for license or registration have a duty to truthfully and fully disclose prior

19

criminal convictions to the commission and any information the commission requests related to

20

said convictions. If issued a license or registration by the commission, licensees have a continuing

21

duty to truthfully and fully disclose any subsequent criminal convictions to the commission, along

22

with any information the commission requests related to said convictions. Failure to do so may

23

result in the denial, suspension, or revocation of a license or registration, and criminal prosecution

24

pursuant to § 21-28.11-27 and/or other applicable law.

25

     (c) "Conviction" as used throughout this chapter shall have the same meaning as set forth

26

in § 21-28.6-6(g)(7).

27

     (d) No person shall be automatically disqualified to practice, pursue, or engage in any

28

business or activity licensed or registered by the commission pursuant to the provisions of this

29

chapter, solely relating to a prior conviction of a cannabis or marijuana possession crime or crimes

30

unless:

31

     (1) The underlying crime or crimes involved the distribution of a controlled substance,

32

including cannabis or marijuana, to a minor; or

33

     (2) The underlying crime or crimes substantially relates to the occupation to which the

34

license or registration applies. Any other state law to the contrary will be superseded by this

 

LC003594 - Page 41 of 115

1

provision.

2

     (e) No occupational license or registration issued by the commission shall be suspended or

3

revoked, solely or in part, because of a prior or subsequent possession of cannabis or marijuana

4

offense conviction of a crime or crimes unless the underlying crime or crimes substantially relate

5

to the occupation to which the license or registration applies. Any other state law to the contrary

6

will be superseded by this provision.

7

     (f) A person who has been convicted of a crime may be disqualified to practice, pursue or

8

engage in any business activity licensed by the commission pursuant to this chapter or chapter 28.6

9

of title 21 if the commission determines that the circumstances of the conviction are substantially

10

related to the occupation for which the license or registration is sought. In determining if a

11

conviction substantially relates to the occupation for which the license or registration is sought, the

12

commission shall consider:

13

     (1) The state's legitimate interest in protecting the property and the safety and welfare of

14

specific individuals or the general public;

15

     (2) The relationship of the crime or crimes to the ability, capacity, and fitness required to

16

perform the duties and discharge the responsibilities of the position of employment or occupation;

17

and

18

     (3) The state's legitimate interest in equal access to employment for individuals who have

19

had past contact with the criminal justice system.

20

     (g) A person who has been convicted of a crime or crimes that substantially relates to the

21

occupation for which a license is sought may not be automatically disqualified from the occupation

22

if the person can establish by competent evidence, satisfactory in the discretion of the commission,

23

of sufficient rehabilitation and present fitness to perform the duties of the occupation for which the

24

license is sought. The commission shall consider the time elapsed since the conviction when

25

determining sufficient rehabilitation, as well as any evidence presented by the applicant regarding:

26

     (1) Completion of a period of at least two (2) years after release from imprisonment, or at

27

least two (2) years after the sentencing date for a probation sentence or suspended sentence not

28

accompanied by incarceration, without subsequent conviction or pending criminal charge;

29

     (2) The nature, seriousness, and relevance of the crime or crimes for which convicted;

30

     (3) All circumstances relative to the crime or crimes, including mitigating circumstances

31

surrounding the commission of the crime or crimes;

32

     (4) The age of the person at the time the crime or crimes were committed;

33

     (5) Claims that the criminal record information is in error or inadmissible; and

34

     (6) All other competent evidence of rehabilitation and present fitness presented, including,

 

LC003594 - Page 42 of 115

1

but not limited to, letters of reference by persons who have been in contact with the applicant since

2

the applicant's release from any state or federal correctional institution.

3

     (h) The following criminal records may not be used in connection with any application for

4

a license or registration submitted pursuant to the provisions of this chapter:

5

     (1) Juvenile adjudications;

6

     (2) Records of arrest not followed by a conviction;

7

     (3) Convictions that have been, pursuant to law, annulled or expunged;

8

     (4) Misdemeanor convictions for which no jail sentence can be imposed;

9

     (5) A conviction that does not substantially relate to the occupation for which the license

10

or registration is sought, as determined by subsection (f) of this section.

11

     (i) If a commission intends to deny, suspend, or revoke an occupational license, permit, or

12

registration solely or in part because of the individual's prior conviction of a crime that is

13

determined to be substantially related to the occupation for which the license or registration applies,

14

the commission shall notify the individual in writing of the following prior to the final decision:

15

     (1) The specific conviction(s) that form the basis for the potential denial, suspension, or

16

revocation and the rationale for deeming the conviction substantially related to the occupation or

17

activity;

18

     (2) A copy of the conviction history report, if any, on which the commission relies;

19

     (3) A statement that the applicant may provide evidence of mitigation or rehabilitation, as

20

described in subsection (g) of this section; and

21

     (4) Instructions on how to respond to the potential denial, suspension, or revocation.

22

     (j) After receiving the notice of potential denial, suspension, or revocation, the individual

23

shall have thirty (30) business days to respond.

24

     (k) If a commission denies, suspends, or revokes a license or registration solely or in part

25

because of the applicant's substantially related conviction, the commission shall issue a final written

26

decision that addresses the following:

27

     (1) The specific conviction(s) that form the basis for the denial, suspension, or revocation

28

and the rationale for deeming the conviction(s) substantially related to the occupation or activity;

29

     (2) A copy of the conviction history report, if any, on which the commission relies;

30

     (3) The process for appealing the decision in accordance with chapter 35 of title 42; and

31

     (4) The earliest date the person may reapply for license or registration which shall not be

32

longer than two (2) years from the date of the final decision.

33

     (m) Notwithstanding any general or special law to the contrary, except as otherwise

34

provided in this chapter, any prior conviction for a crime that has been decriminalized, or is eligible

 

LC003594 - Page 43 of 115

1

for expungement pursuant to the provisions of this chapter cannot serve as grounds, either solely

2

or in part, for denial, suspension or revocation of a license or registration pursuant to this chapter.

3

     (n) The commission shall adopt rules and regulations establishing standards and procedures

4

consistent with the provisions of this section.

5

     21-28.11-12.2. Labor peace agreement -- Requirements.

6

     (a) For the purposes of this section, the following terms shall have the following meanings:

7

     (1) "Labor peace agreement" means an agreement between a licensee and a bona fide labor

8

organization that, at a minimum, protects the state's proprietary interests by prohibiting labor

9

organizations and members from engaging in picketing, work stoppages, boycotts, and any other

10

economic interference with the entity.

11

     (2) "Bona fide labor organization" is a labor union that represents or is actively seeking to

12

represent cannabis workers.

13

     (b) All retail licensees, including retail licensees pursuant to § 21-28.11-10.2, hybrid

14

cannabis establishments pursuant to § 21-28.11-10, and compassion centers licensed pursuant to

15

chapter 28.6 of title 21 shall, enter into, maintain, and abide by the terms of a labor peace agreement,

16

and shall submit to the commission an attestation by a bona fide labor organization stating that the

17

applicant meets this section's requirements.

18

     (c) Compassion centers authorized to purchase and deliver cannabis and cannabis products

19

to registered qualifying patients and their registered primary caregivers or authorized purchasers,

20

or other marijuana establishment licensees shall be required to meet the requirements established

21

in this section before conducting retail adult sales of cannabis and cannabis products to consumers

22

as a hybrid cannabis retailer pursuant to the provisions of this chapter.

23

     (d) Compliance with the requirements of this section are deemed to be an ongoing material

24

condition of the license, and any violation may result in suspension, revocation and/or non-renewal

25

of the license by the commission.

26

     (e) Nothing in this act should be construed to limit the National Labor Relations Act, Labor

27

Management Relations Act, the Railway Labor Act, or other conflicting federal law

28

     21-28.11-13. Taxes.

29

     (a) The following taxes are imposed on the retail sale of adult use cannabis pursuant to the

30

provisions of this chapter.

31

     (1) Sales tax pursuant to the provisions of § 44-18-18;

32

     (2) A state cannabis excise tax equal to ten percent (10%) of each retail sale as defined in

33

§ 44-18-8; and

34

     (3) A local cannabis excise tax equal to three percent (3%) of each retail sale as defined in

 

LC003594 - Page 44 of 115

1

§ 44-18-8.

2

     (b) The assessment, collection and enforcement of the sales tax pursuant to § 44-18-18, the

3

state cannabis excise tax, and the local cannabis excise tax shall be pursuant to the provisions of

4

chapters 18 and 19 of title 44 and paid to the tax administrator by the retailer at the time and in the

5

manner prescribed for sales tax in § 44-19-10. The retailer shall add the taxes imposed by this

6

chapter to the sales price or charge, and when added the taxes constitute a part of the price or charge,

7

is a debt from the consumer or user to the retailer, and is recoverable at law in the same manner as

8

other debts.

9

     (c) All sums received by the division of taxation under this section as local cannabis excise

10

tax or associated amounts as penalties, forfeitures, interest, costs of suit, and fines for failure to

11

timely report or pay the local cannabis excise tax shall be distributed at least quarterly and credited

12

and paid by the state treasurer to the city or town where the cannabis is delivered.

13

     (d) Subject to appropriation by the general assembly, revenue collected as sales tax and the

14

state cannabis excise tax will be used to fund programs and activities related to program

15

administration; revenue collection and enforcement; substance use disorder prevention for adults

16

and youth; education and public awareness campaigns; treatment and recovery support services;

17

public health monitoring, research, data collection, and surveillance; law enforcement training and

18

technology improvements, including grants to local law enforcement; and such other related uses

19

that may be deemed necessary.

20

     21-28.11-14. Municipal fees.

21

     No fee, tax charge or expense shall be assessed or collected by a municipality from an

22

individual licensed pursuant to the provisions of this chapter except for local cannabis excise tax

23

pursuant to § 21-28.11-13 and any other fee, tax, charge or expense generally assessed or collected

24

from residents or businesses located in the municipality.

25

     21-28.11-15. Municipal authority.

26

     (a) Any city or town may by resolution of the city or town council, cause to be printed on

27

the ballot in an election held on or before November 8, 2022, the following question: "Shall

28

cannabis licenses for businesses involved in the cultivation, manufacture, laboratory testing and for

29

the retail sale of adult recreational use cannabis be issued in the city (or town)?"

30

     (b) Upon the adoption of a resolution by the city or town council pursuant to the provisions

31

of subsection (a) of this section, the commission shall not issue any cannabis related license

32

pursuant to the provisions of this chapter unless and until the electors of the city or town vote to

33

approve the issuance of cannabis related licenses within the city or town.

34

     (c) If a majority of ballots cast on which the electors indicated their choice is against

 

LC003594 - Page 45 of 115

1

granting the license, then no license pursuant to this chapter shall be issued by the commission

2

relating to the sale of recreational cannabis within the city or town. Any city or town that by

3

referendum declines to allow the issuance licenses relating to the sale of recreational marijuana will

4

not be eligible to receive revenue pursuant to § 21-28.11-13.

5

     (d) For the purpose of this section, "cannabis related licenses" includes licenses for

6

cultivation, manufacture, laboratory testing and/or retail sale.

7

     21-28.11-16. Local control.

8

     (a) A city or town may adopt ordinances and by-laws that impose reasonable safeguards

9

on the operation of cannabis establishments, provided they are not unreasonable and impracticable

10

and are not in conflict with this chapter or with regulations made pursuant to this chapter and that:

11

     (1) Govern the time, place and manner of cannabis establishment operations and of any

12

business dealing in cannabis accessories, except that zoning ordinances or by-laws shall not operate

13

to:

14

     (i) Prevent the conversion of a medical marijuana compassion center licensed or registered

15

engaged in the manufacture or sale of cannabis or cannabis products to an adult use retail cannabis

16

establishment engaged in the same type of activity under this chapter; or

17

     (ii) Limit the number of cannabis establishments below the limits established pursuant to

18

this chapter;

19

     (2) Restrict the licensed cultivation, processing and manufacturing of cannabis that is a

20

public nuisance;

21

     (3) Establish reasonable restrictions on public signs related to cannabis establishments;

22

provided, however, that if a city or town enacts an ordinance or by-law more restrictive than the

23

commission's standard, then the local ordinance or by-law shall not impose a standard for signage

24

more restrictive than those applicable to retail establishments that sell alcoholic beverages within

25

that city or town;

26

     (4) Establish a civil penalty for violation of an ordinance or by-law enacted pursuant to this

27

subsection, similar to a penalty imposed for violation of an ordinance or by-law relating to alcoholic

28

beverages.

29

     (b) No city or town shall prohibit the transportation of cannabis or cannabis products or

30

adopt an ordinance or by-law that makes the transportation of cannabis or cannabis products

31

unreasonable and impracticable.

32

     21-28.11-17. No right to license.

33

     (a) Nothing contained in this chapter shall be construed as establishing a right in any person

34

or entity to be issued a license or certificate pursuant to this chapter.

 

LC003594 - Page 46 of 115

1

     (b) The commission shall exercise discretion to issue licenses and certificates to further the

2

purposes of this chapter and may deny any application, suspend an application period, impose

3

moratoriums on applications and/or issuance of licenses to further the purpose of public safety, the

4

orderly administration of cannabis production, distribution and sale and to promote the purposes of

5

this chapter.

6

     (c) No appeal for a denial of a license shall be sustained solely on the grounds that the

7

person or entity satisfied the qualifications for issuance of a license.

8

     21-28.11-17.1 General conditions for licenses.

9

     (a) Upon receipt of a complete cannabis establishment license application and the

10

application fee, the commission shall forward a copy of the application to the city or town in which

11

the cannabis establishment is to be located, determine whether the applicant and the premises

12

qualify for the license and has complied with this chapter and shall, within ninety (90) days:

13

     (1) Acknowledge that the application is satisfactory and complete; or

14

     (2) Send to the applicant a notice of rejection setting forth specific reasons why the license

15

application is incomplete, rejected, unsatisfactory or fails to comply with the application

16

requirements.

17

     (b) The commission may, subject to the rules and regulations promulgated by the

18

commission and in the exercise of the commission's discretion pursuant to § 21-28.11-17, approve

19

a cannabis establishment license application and issue a license if:

20

     (1) The prospective cannabis establishment has submitted an application in compliance

21

with regulations made by the commission, the applicant satisfies the requirements established by

22

the commission, the applicant is in compliance with this chapter and the regulations made by the

23

commission and the applicant has paid any required fee;

24

     (2) No notification of non-compliance from the city or town has been received by the

25

commission within forty-five (45) days;

26

     (3) The property where the proposed cannabis establishment is to be located, at the time

27

the license application is received by the commission, is not located within five hundred (500) feet

28

of a pre-existing public or private school providing education in kindergarten or any of grades one

29

through twelve (12), unless a city or town adopts an ordinance or by-law that reduces the distance

30

requirement;

31

     (4) The applicant, and any agents or employees of the applicant as required by the

32

commission pursuant to its rules and regulations, have undergone a criminal background check

33

pursuant to § 21-28.11-12.1 and on terms established by the commission;

34

     (5) As a condition of licensing, cannabis establishments shall consent and be subject to

 

LC003594 - Page 47 of 115

1

inspection by the commission for the purposes of ensuring and enforcing compliance with this

2

chapter and all rules and regulations promulgated pursuant to this chapter, to include, but not be

3

limited to, the provisions of chapter 5 of title 28 (the "fair employment practices act"), chapter 28

4

of title 21 (the "the uniform controlled substances act") and title 44 ("taxation"); and

5

     (6) Every individual who will be a controlling person of the proposed cannabis

6

establishment has not been convicted of a felony or convicted of an offense in another state that

7

would be a felony in this state and which would substantially relate to the occupation for which the

8

applicant has applied for licensure, or the prior conviction is solely for a marijuana possession

9

offense subject to expungement, or the individual is determined to be not disqualified pursuant to

10

§ 21-28.11-12.1.

11

     (c) In addition to requirements established by regulation or by a city or town pursuant to

12

this chapter, a cannabis establishment shall:

13

     (1) Secure every entrance to the establishment in order that access to areas containing

14

cannabis is restricted to employees and others permitted by the cannabis establishment to access

15

the area and to agents of the commission or state and local law enforcement officers and emergency

16

personnel; and

17

     (2) Secure its inventory and equipment during and after operating hours to deter and

18

prevent theft of cannabis, cannabis products and cannabis accessories.

19

     (d) No cannabis establishment may cultivate, process, test, store or manufacture cannabis

20

or cannabis products at any location other than at a physical address approved by the commission

21

and within an area that is enclosed and secured in a manner that prevents access by persons not

22

permitted by the cannabis establishment to access the area.

23

     (e) No cannabis establishment shall allow cultivation, processing, manufacture, sale or

24

display of cannabis or cannabis products to be visible from a public place without the use of

25

binoculars, aircraft or other optical aids, as determined by the commission.

26

     (f) No cannabis establishment shall refuse representatives of the commission the right at

27

any time of operation to inspect the entire licensed premises or to audit the books and records of

28

the cannabis establishment for the purposes of ensuring and enforcing compliance with this chapter

29

and all rules and regulations promulgated by the commission pursuant to this chapter.

30

     (g) No cannabis establishment shall allow any person under twenty-one (21) years of age

31

to volunteer or work for the cannabis establishment.

32

     (h) No cannabis establishment shall cultivate, manufacture, sell or otherwise transact

33

business with any products containing cannabinoids other than those that were produced,

34

distributed and taxed in compliance with this chapter.

 

LC003594 - Page 48 of 115

1

     (i) All cannabis establishments shall be subject to any regulations promulgated by the

2

commission that specify how cannabis shall be tested, including but not limited to, potency,

3

cannabinoid profile, and contaminants.

4

     (j) All cannabis establishments shall be subject to any product labeling requirements

5

promulgated by the commission.

6

     (k) License required. No person or entity shall operate a cannabis establishment without an

7

appropriate license(s) and/or registration(s) issued by the commission.

8

     (l) Each licensee shall file an emergency response plan with the fire department and police

9

department of the host community pursuant to rules and regulations promulgated by the

10

commission pursuant to this chapter.

11

     21-28.11-18. Enforcement.

12

     (a)(1) Notwithstanding any other provision of this chapter, if the commission has cause to

13

believe that a violation of any provision of chapters 21-28.6 or 21-28.11 or any regulations

14

promulgated thereunder has occurred by a licensee that is under the commission's jurisdiction

15

pursuant to chapters 21-28.6 or 21-28.11, or that any person or entity is conducting any activities

16

requiring licensure or registration by the commission under chapters 21-28.6 or 28.11 or the

17

regulations promulgated thereunder without such licensure or registration, the commission may, in

18

accordance with the requirements of the administrative procedures act, chapter 35 of title 42:

19

     (i) With the exception of patients and authorized purchasers, revoke or suspend a license

20

or registration;

21

     (ii) Levy an administrative penalty in an amount established pursuant to law or regulations

22

promulgated by the cannabis control commission;

23

     (iii) Order the violator to cease and desist such actions;

24

     (iv) Require a licensee or registrant or person or entity conducting any activities requiring

25

licensure or registration under chapters 21-28.6 or 21-28.11 to take such actions as are necessary

26

to comply with such chapter and the regulations promulgated thereunder; or

27

     (v) Any combination of the above penalties.

28

     (2) If the commission finds that public health, safety, or welfare imperatively requires

29

emergency action, and incorporates a finding to that effect in its order, summary suspension of

30

license or registration and/or cease and desist may be ordered pending proceedings for revocation

31

or other action. These proceedings shall be promptly instituted and determined.

32

     (b) If a person exceeds the possession limits in violation of law or is in violation of any

33

other section of chapters 21-28.6 or 21-28.11 or the regulations promulgated thereunder, he or she

34

may also be subject to arrest and prosecution under chapter 28 of title 21.

 

LC003594 - Page 49 of 115

1

     (c) All marijuana establishment licensees are subject to inspection by the cannabis control

2

commission, including, but not limited to, the licensed premises, all marijuana and marijuana

3

products located on the licensed premises, personnel files, training materials, security footage, all

4

business records and business documents including but not limited to purchase orders, transactions,

5

sales, and any other financial records or financial statements whether located on the licensed

6

premises or not.

7

     (d) All marijuana products that are held within the borders of this state in violation of the

8

provisions of chapters 28.6 or 28.11 of title 21 or the regulations promulgated thereunder are

9

declared to be contraband goods and may be seized by the commission, the tax administrator or his

10

or her agents, or employees, or by any sheriff, or his or her deputy, or any police or other law

11

enforcement officer when requested by the tax administrator or cannabis control commission to do

12

so, without a warrant. All contraband goods seized by the state under this chapter may be destroyed.

13

     (e) Notwithstanding any other provision of law, the commission may make available to

14

law enforcement and public safety personnel, any information that it may consider proper contained

15

in licensing records, inspection reports and other reports and records maintained by the

16

commission, as necessary or appropriate for purposes of ensuring compliance with state laws and

17

regulations. Nothing in this act shall be construed to prohibit law enforcement, public safety, fire,

18

or building officials from investigating violations of, or enforcing state law.

19

     21-28.11-18.1. Cannabis office.

20

     (a) There is hereby established within the department of business regulation the "cannabis

21

office".

22

     (b) Upon final issuance of the commission's rules and regulations whenever in the general

23

laws, rules or regulations the term "office of cannabis regulation" appears, the term shall mean the

24

"cannabis office" established pursuant to the provisions of subsection (a) of this section and the

25

provisions of § 21-28.11-18.1.

26

     (c) The governor shall appoint a deputy director of the department to serve as administrator

27

of the cannabis office.

28

     (d) The deputy director consistent with the provisions of this chapter and in furtherance of

29

coordinating the oversight and administration of cannabis use shall have the following powers,

30

duties and responsibilities:

31

     (1) Exercise the powers and perform the duties as delegated by the commission in relation

32

to the administration of the cannabis office, including, but not limited to, budgetary and fiscal

33

matters.

34

     (2) Advise and assist the commission in carrying out any of the commission's functions,

 

LC003594 - Page 50 of 115

1

powers, and duties;

2

     (3) As authorized by the commission, enter into contracts, memoranda of understanding,

3

and agreements to effectuate the policy and purpose of this chapter;

4

     (4) Prescribe forms of applications for licenses under this chapter;

5

     (5) Prepare reports and information as deemed necessary by the commission;

6

     (6) Inspect or provide for inspections of any licensed premises where cannabis is cultivated,

7

processed, stored, distributed or sold as directed or authorized by the commission;

8

     (7) Provide office accommodations, hearing rooms, and direct administrative and

9

personnel support and staff to the commission in order to carry out the commission's duties and

10

responsibilities;

11

     (8) Maintain records of regulations, licenses, and permits issued and revoked by the

12

commission in a manner that information is readily available regarding identity of licensees,

13

including the names of officers and directors of corporate licensees and the location of all licensed

14

premises;

15

     (9) Delegate the powers provided in this section to employees as may be deemed

16

appropriate;

17

     (10) Coordinate across state agencies and departments to conduct research and to study

18

cannabis use and the regulated cannabis industry and the impact access to cannabis products may

19

have on public health and public safety;

20

     (11) Issue guidance and industry advisories;

21

     (12) Study the administration and alignment of cannabis regulation and as necessary make

22

recommendations to the commission to improve administration;

23

     (13) As directed by the commission, coordinate with the staff designated by the respective

24

directors of each state agency regarding adult use of cannabis, medical cannabis and industrial

25

hemp with the objective of producing positive economic, public safety, and health outcomes for

26

the state and its citizens;

27

     (14) As directed by the commission, offer guidance to and communicate with municipal

28

officials regarding the implementation and enforcement of this chapter and chapter 28.6 of title 21;

29

and

30

     (15) As directed by the commission, communicate with regulatory officials from other

31

states that allow cannabis for adult use and medical cannabis use, and benefit from the experiences

32

of those states.

33

     (e) Subject to appropriation by the general assembly, the administrator of the cannabis

34

office is authorized to retain and employ employees of the office of cannabis regulation as

 

LC003594 - Page 51 of 115

1

employees in the cannabis office. Any proposed new hires or additional staff or employees to be

2

employed by the cannabis office shall be approved by the commission and are subject to

3

appropriation by the general assembly.

4

     21-28.11-19. Multiple licenses restricted.

5

     (a) No person or entity licensed pursuant to the provisions of this chapter or chapter 28.6

6

of title 21, except as provided in subsection (c) of this section, shall be granted more than one

7

license.

8

     (b) No licensee shall own, control, manage or operate any other entity licensed pursuant to

9

the provisions of this chapter.

10

     (c) Nothing in this chapter or chapter 28.6 of title 21 shall be construed to prohibit a

11

compassion center licensed pursuant to the provisions of chapter 28.6 of title 21 from acquiring

12

additional licensing issued to conduct retail sales as a hybrid cannabis retailer pursuant to the

13

provisions of this chapter.

14

     (d) Nothing in this chapter shall be construed to prohibit one person from investing in

15

multiple licensed entities under this chapter.

16

     21-28.11-20. Inspections, audits and investigations.

17

     (a) As a condition of licensure, cannabis establishments are subject to inspection by the

18

commission or personnel designated by the commission. Inspections shall occur periodically, at

19

reasonable times and shall be limited in scope to determine compliance with the provisions of this

20

chapter and chapter 28.6 of title 21 and the rules and regulations promulgated by the commission.

21

During inspections the commission or designated personnel may examine and inspect any premises,

22

books, records, papers, stocks of cannabis or cannabis products.

23

     (b) The commission may request and authorize administrative inspections to be conducted

24

by the department of health or the state police. For purposes of this section, "administrative

25

inspection" shall mean any inspection, independent of a criminal investigation, that is conducted

26

for the purpose of determining compliance with applicable state law and rules and regulations of

27

the commission.

28

     (c) The tax administrator shall have authority to conduct inspections of all matters

29

necessary to determine compliance with the provisions of title 44 ("taxation").

30

     (d) Any licensee who wrongfully fails to cooperate with an inspection authorized pursuant

31

to the provisions of this section shall be guilty of a misdemeanor punishable by imprisonment of

32

up to one year, or a fine of not more than five thousand dollars ($5,000), or both, and revocation of

33

license.

34

     21-28.11-21. Expiration and renewal.

 

LC003594 - Page 52 of 115

1

     (a) All licenses under this chapter shall be effective for one year from the date of issuance.

2

     (b) Subject to rules and regulations the commission shall issue a renewal license within

3

thirty (30) days of receipt of a renewal application and renewal license fee from licensees in good

4

standing as determined by the commission and who have filed all required tax returns and paid all

5

required taxes.

6

     21-28.11-22. Personal use of cannabis.

7

     (a) Notwithstanding any other general or special law to the contrary, except as otherwise

8

provided in this chapter, a person twenty-one (21) years of age or older shall not be arrested,

9

prosecuted, penalized, sanctioned or disqualified under the laws of the state in any manner, or

10

denied any right or privilege and shall not be subject to seizure or forfeiture of assets for:

11

     (1) Possessing, using, purchasing from a licensed cannabis retailer, or processing one ounce

12

(1 oz.) or less of cannabis, except that not more than five grams (5 gr.) of cannabis may be in the

13

form of cannabis concentrate;

14

     (2) Within any residence, possessing, cultivating or processing not more than a total of

15

three (3) mature cannabis plants and up to a total of three (3) immature cannabis plants per dwelling

16

unit for personal use and as long as all security requirements as promulgated by the commission

17

are complied with. These limits shall apply no matter how many persons reside at the premises;

18

     (3) Within the person's primary residence, possessing up to ten ounces (10 oz.) total of

19

cannabis, in addition to any live cannabis plants lawfully kept on the premises in compliance with

20

subsection (a)(2) of this section, as long as all security requirements as promulgated by the

21

commission are complied with;

22

     (4) Assisting another person who is twenty-one (21) years of age or older in any of the acts

23

described in this section; or

24

     (5) Giving away or otherwise transferring without remuneration up to one ounce (1 oz.) of

25

cannabis, except that not more than five grams (5 gr.) of cannabis may be in the form of cannabis

26

concentrate, to a person twenty-one (21) years of age or older, as long as the transfer is not

27

advertised or promoted to the public.

28

     (b) Notwithstanding any other general or special law to the contrary, except as otherwise

29

provided in this chapter, a person shall not be arrested, prosecuted, penalized, sanctioned or

30

otherwise denied any benefit and shall not be subject to seizure or forfeiture of assets for allowing

31

property the person owns, occupies or manages to be used for any of the activities conducted

32

lawfully under this chapter or for enrolling or employing a person who engages in cannabis-related

33

activities lawfully under this chapter.

34

     (c) Absent clear and convincing evidence that the person's actions related to cannabis have

 

LC003594 - Page 53 of 115

1

created an unreasonable danger to the safety of a minor child, neither the presence of cannabinoid

2

components or metabolites in a person's bodily fluids nor conduct permitted under this chapter

3

related to the possession, consumption, transfer, cultivation, manufacture or sale of cannabis,

4

cannabis products or cannabis accessories by a person charged with the well-being of a child shall

5

form the sole or primary basis for substantiation, service plans, removal or termination or for denial

6

of custody, visitation or any other parental right or responsibility.

7

     (d) The use of cannabis shall not disqualify a person from any needed medical procedure

8

or treatment, including organ and tissue transplants.

9

     (e) Nothing contained within this chapter or chapter 28.6 shall be construed as authorizing

10

the smoking or vaporizing of cannabis in any public place. The smoking of cannabis is prohibited

11

in any public place that prohibits the smoking or vaporizing of tobacco products.

12

     21-28.11-23. Cannabis accessories authorized.

13

     Notwithstanding any general or special law to the contrary, except as otherwise provided

14

in this chapter, a person twenty-one (21) years of age or older shall not be arrested, prosecuted,

15

penalized, sanctioned or disqualified and shall not be subject to seizure or forfeiture of assets for

16

possessing, purchasing or otherwise obtaining or manufacturing cannabis accessories or for selling

17

or otherwise transferring cannabis accessories to a person who is twenty-one (21) years of age or

18

older.

19

     21-28.11-24. Lawful operation of cannabis establishments.

20

     (a) Notwithstanding any general or special law to the contrary, except as otherwise

21

provided in this chapter or in rules and regulations adopted pursuant to the provisions of this

22

chapter, the following persons involved in the distribution of cannabis as authorized by this chapter

23

shall not be arrested, prosecuted, penalized, sanctioned or disqualified and shall not be subject to

24

seizure or forfeiture of assets for activities specified for:

25

     (1) A cannabis retailer or hybrid cannabis retailer or an owner, operator, employee or other

26

agent acting on behalf thereof possessing or testing cannabis or cannabis products, purchasing,

27

selling or otherwise transferring or delivering cannabis or cannabis products to or from a cannabis

28

establishment; or selling or otherwise transferring or delivering cannabis or cannabis products to a

29

consumer;

30

     (2) A cannabis cultivator or an owner, operator, employee or other agent acting on behalf

31

of a cannabis cultivator cultivating, propagating, breeding, harvesting, processing, packaging,

32

testing, storing or possessing cannabis or cannabis products, or selling or otherwise transferring,

33

purchasing or delivering cannabis and cannabis products to or from a cannabis establishment;

34

     (3) A cannabis product manufacturer or an owner, operator, employee or other agent acting

 

LC003594 - Page 54 of 115

1

on behalf of a cannabis product manufacturer packaging, processing, manufacturing, storing,

2

testing or possessing cannabis or cannabis products, or delivering, selling or otherwise transferring

3

and purchasing cannabis or cannabis products to or from a cannabis establishment; or

4

     (4) A cannabis independent testing laboratory or an owner, operator, employee or other

5

agent acting on behalf of a cannabis independent testing laboratory possessing, processing, storing,

6

transferring or testing cannabis or cannabis products.

7

     (b) Any licensee, or agent or employee thereof, under this chapter who reasonably relies

8

on a valid state issued identification card, or on a valid motor vehicle license, or on a valid passport

9

issued by the United States government, or by the government of a foreign country recognized by

10

the United States government, or a valid United States issued military identification card, for proof

11

of a person's identity and age shall not suffer any modification, suspension, revocation or

12

cancellation of such license, nor shall the licensee, agent or employee suffer any criminal liability,

13

for delivering or selling cannabis or cannabis products to a person under twenty-one (21) years of

14

age. Any licensee, or agent or employee thereof, under this chapter, who reasonably relies on the

15

forms of identification listed in this subsection, for proof of a person's identity and age shall be

16

presumed to have exercised due care in making such delivery or sale of cannabis or cannabis

17

products to a person under twenty-one (21) years of age. Such presumption shall be rebuttable.

18

     21-28.11-25. Contracts pertaining to cannabis enforceable.

19

     It is the public policy of the state that contracts related to the operation of cannabis

20

establishments under this chapter shall be enforceable. A contract entered into by a licensee or its

21

agents as permitted pursuant to a valid license issued by the commission, or by those who allow

22

property to be used by a licensee or its agents as permitted pursuant to a valid license issued by the

23

commission, shall not be unenforceable or void exclusively because the actions or conduct

24

permitted pursuant to the license is prohibited by federal law.

25

     21-28.11-26. Provision of professional services.

26

     A person engaged in a profession or occupation subject to licensure shall not be subject to

27

disciplinary action by a professional licensing board solely for providing professional services to

28

prospective or licensed cannabis establishments related to activity under this chapter that is not

29

subject to criminal penalty under the laws of the state.

30

     21-28.11-27. Penalties.

31

     (a) Every person who engages in any activity regulated by this chapter without a license or

32

registration required by the provisions of this chapter may be prosecuted and punished pursuant to

33

the provisions of chapter 28 of title 21 (the "uniform controlled substances act") or other applicable

34

law.

 

LC003594 - Page 55 of 115

1

     (b) Every person who engages in any activity in violation of § 21-28.11-22 may be

2

prosecuted and punished pursuant to the provisions of chapter 28 of title 21 (the uniform controlled

3

substances act).

4

     (c) Except as otherwise provided in this chapter, any person licensed pursuant to this

5

chapter or acting as an agent for an entity licensed pursuant to this chapter who willfully:

6

     (1) By fraud, deceit, or misrepresentation or subterfuge materially omits or falsifies any

7

information related to : (i) The application for a license or renewal of a license to be issued pursuant

8

to this chapter; or (ii) Any report, notice or filing required to be submitted to the commission, the

9

cannabis office, the tax administrator or the department of revenue; or

10

     (2) Possesses cannabis in excess of sixteen ounces (16 oz.) in violation of the provisions

11

of this chapter or the rules and regulations of the commission; or

12

     (3) Knowingly transfers cannabis to a minor in violation of the provisions of this chapter

13

and chapter 28.6 of title 21 shall be guilty of a felony and upon conviction may be imprisoned for

14

not more than five (5) years and fined not more than ten thousand dollars ($10,000) or both, and

15

shall forfeit any license issued pursuant to this chapter.

16

     21-28.11-27.1. No minors on the premises of marijuana establishments.

17

     A cannabis establishment shall not allow any person who is under twenty-one (21) years

18

of age to be present inside any room where cannabis or cannabis products are stored, produced, or

19

sold by the cannabis establishment unless the person who is under twenty-one (21) years of age is:

20

     (1) A government employee performing their official duties; or

21

     (2) If the cannabis establishment is a hybrid cannabis retailer that also holds a compassion

22

center license pursuant § 21-28.6-12 for the same licensed premises and the individual under

23

twenty-one (21) years of age is a qualifying patient registered under chapter 28.6 of title 21 and the

24

retail establishment complies with applicable regulations promulgated by the commission.

25

     21-28.11-27.2. Drug awareness program.

26

     The department of behavioral healthcare, development disabilities and hospitals (BHDDH)

27

shall develop substance abuse prevention programs and student assistance programs for youth

28

pursuant to chapter 21.1 and 21.3 of title 16, and in accordance with the criteria set forth in §§ 16-

29

21.2-4(a) and 16-21.3-2(a). The drug awareness program shall provide at least four (4) hours of

30

classroom instruction or group discussion and ten (10) hours of community service.

31

     21-28.11-28. Liability to state under this chapter as debt.

32

     Any liability to the state under this chapter shall constitute a debt to the state. Once a

33

statement of debt naming a licensee is recorded, registered or filed, any such debt shall constitute

34

a lien on all commercial property owned by a licensee in the state and shall have priority over an

 

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1

encumbrance recorded, registered or filed with respect to any site.

2

     21-28.11-29. Prohibited activities.

3

     (a) This chapter shall not permit:

4

     (1) Any person to undertake any task under the influence of cannabis when doing so would

5

constitute negligence or professional malpractice;

6

     (2) The smoking or vaporizing of cannabis:

7

     (i) In a school bus or other form of public transportation;

8

     (ii) On any school grounds;

9

     (iii) In any correctional facility;

10

     (iv) In any public place or other place where smoking or vaporizing of tobacco is prohibited

11

by federal or state law or by local ordinance;

12

     (v) In any licensed drug treatment facility in this state; or

13

     (vi) Where exposure to the cannabis smoke significantly adversely affects the health,

14

safety, or welfare of children; or

15

     (3) Any person to operate, navigate, or be in actual physical control of any motor vehicle,

16

aircraft, or motorboat while under the influence of cannabis. However, a person shall not be

17

considered to be under the influence solely for having cannabis metabolites in his or her system.

18

     (b) Nothing in this chapter shall be construed to require:

19

     (1) A government medical assistance program or private health insurer or workers'

20

compensation insurer, workers' compensation group self-insurer, or employer self-insured for

21

workers' compensation under § 28-36-1 to reimburse a person for costs associated with the medical

22

use of cannabis; or

23

     (2) An employer to accommodate the medical use of marijuana in any workplace.

24

     (c) Fraudulent representation to a law enforcement official of any fact or circumstance

25

relating to the medical use of marijuana to avoid arrest or prosecution shall be punishable by a fine

26

of five hundred dollars ($500) which shall be in addition to any other penalties that may apply for

27

making a false statement for the nonmedical use of cannabis.

28

     (d) Nothing contained in this chapter shall be construed to require employers to

29

accommodate the use or possession of cannabis, or being under the influence of cannabis, in any

30

workplace. Employers may implement drug use policies which prohibit the use or possession of

31

cannabis in the workplace or working under the influence of cannabis, provided that unless such

32

use is prohibited pursuant to the terms of a collective bargaining agreement, an employer shall not

33

fire or take disciplinary action against an employee solely for an employee's private, lawful use of

34

cannabis outside the workplace and as long as the employee has not and is not working under the

 

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1

influence of cannabis except to the extent that:

2

     (1) The employer is a federal contractor or otherwise subject to federal law or regulations

3

such that failure to take such action would cause the employer to lose a monetary or licensing

4

related benefit thereunder; or

5

     (2) The employee is employed in a job, occupation or profession that is hazardous,

6

dangerous or essential to public welfare and safety. If the employee's job, occupation or profession

7

involves work that is hazardous, dangerous or essential to public welfare and safety then the

8

employer may prohibit the use or consumption of cannabis within the twenty-four (24) hour period

9

prior to a scheduled work shift or assignment. For purposes of this section, hazardous, dangerous

10

or essential to public welfare and safety shall include, but not be limited to: operation of an aircraft,

11

watercraft, heavy equipment, heavy machinery, commercial vehicles, school buses or public

12

transportation; use of explosives; public safety first responder jobs; and emergency and surgical

13

medical personnel.

14

     (e) Nothing contained in this chapter shall prevent an employer from refusing to hire,

15

discharging, disciplining, or otherwise taking an adverse employment action against a person with

16

respect to hire, tenure, terms, conditions, or privileges of employment because of that person's

17

violation of a workplace drug policy or because that person was working while under the influence

18

of cannabis.

19

     (f) The provisions of this chapter do not exempt any person from arrest, civil or criminal

20

penalty, seizure or forfeiture of assets, discipline by any state or local licensing board or authority,

21

and state prosecution for, nor may they establish an affirmative defense based on this chapter to

22

charges arising from, any of the following acts:

23

     (1) Driving, operating, or being in actual physical control of a vehicle or a vessel under

24

power or sail while impaired by cannabis or cannabis products;

25

     (2) Possessing or using cannabis or cannabis products if the person is in state custody;

26

     (3) Possessing or using cannabis or cannabis products in any local detention facility, jail,

27

state prison, reformatory, or other correctional facility, including, without limitation, any facility

28

for the detention of juvenile offenders; or

29

     (4) Manufacturing or processing of cannabis products with the use of prohibited solvents,

30

in violation of this chapter and chapter 28.6 of title 21; or

31

     (5) Possessing, using, distributing, cultivating, processing or manufacturing cannabis or

32

cannabis products which do not satisfy the requirements of this chapter and chapter 28.6 of title 21.

33

     (g) Except as provided in this section, the provisions of this chapter do not require any

34

person, corporation, or any other entity that occupies, owns, or controls a property to allow the

 

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1

consumption, or transfer of marijuana on or in that property.

2

     (h) Except as provided in this section, in the case of the rental of a residential dwelling unit

3

governed by chapter 18 of title 34, a landlord may not prohibit the consumption of cannabis by

4

non-smoked or non-vaporized means, or the transfer without compensation of cannabis by the

5

tenant as defined in § 34-18-11, provided the tenant is in compliance with the possession and

6

transfer limits and other requirements set forth in this chapter.

7

     21-28.11-30. Employer's duties.

8

     Nothing in this chapter shall be construed to preempt or limit the duties of any employer

9

under applicable law, or shall permit an employer to require an employee to disclose sealed or

10

expunged offenses, unless otherwise required by law.

11

     21-28.11-31. Social equity assistance program and fund.

12

     (a)(1) Findings. The general assembly finds that additional efforts are needed to reduce

13

barriers to ownership and/or participation in the cannabis industry for individuals and communities

14

most adversely impacted by the enforcement of cannabis-related laws.

15

     (2) In the interest of establishing a legal cannabis industry that is equitable and accessible

16

to those most adversely impacted by the enforcement of cannabis-related laws, the general

17

assembly finds and declares that a social equity program should be established.

18

     (3) The general assembly also finds and declares that individuals who have been arrested

19

or incarcerated due to cannabis related laws suffer long-lasting negative consequences, including

20

impacts to employment, business ownership, housing, health, and long-term financial well-being.

21

     (4) The general assembly also finds and declares that family members, especially children,

22

and communities of those who have been arrested or incarcerated due to cannabis related laws,

23

suffer from emotional, psychological, and financial harms as a result of such arrests or

24

incarcerations.

25

     (5) Furthermore, the general assembly finds and declares that certain communities have

26

disproportionately suffered the harms of enforcement of cannabis-related laws. Those communities

27

face greater difficulties accessing capital to finance the start-up costs for a cannabis establishments.

28

     (6) The general assembly also finds that individuals who have resided in areas of high

29

poverty suffer negative consequences, including barriers to entry in employment, business

30

ownership, housing, health, and long-term financial well-being.

31

     (7) The general assembly also finds and declares that promotion of business ownership by

32

individuals who have resided in areas of high poverty and high enforcement of cannabis-related

33

laws furthers a more equitable cannabis industry.

34

     (8) Therefore, in the interest of mitigating the harms resulting from the enforcement of

 

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1

cannabis-related laws, the general assembly finds and declares that a social equity program should

2

offer, among other things, business assistance and license application benefits to individuals most

3

directly and adversely impacted by the enforcement of cannabis-related laws who are interested in

4

establishing or participating in a cannabis business entity.

5

     (b) There is created in the state treasury within the general fund, a fund which shall be held

6

separate and apart from all other state monies, to be known as the social equity assistance fund.

7

The social equity assistance fund, subject to appropriation, shall be exclusively used for the

8

following purposes:

9

     (1) To provide grants to approved social equity applicants to pay for ordinary and necessary

10

expenses to establish and/or operate a cannabis establishment, and to also further promote the goals

11

of this chapter, including without limitation, job training and workforce development, mentoring

12

services and technical assistance;

13

     (2) To support the waiver or reduction of application and licensing fees pursuant to this

14

section for social equity applicants.

15

     (3) To implement and administer programming for restorative justice, jail diversion, drug

16

rehabilitation and education workforce development for jobs related to cannabis cultivation,

17

transportation, distribution and sales;

18

     (c) The social equity assistance fund shall be subject to appropriation. The fund shall

19

consist of all monies received on account of the state as a result of application for, and licensing of,

20

individuals and entities pursuant to the provisions of this chapter, exclusive of licensing fees paid

21

pursuant to the provisions of chapter 28.6 of title 21. Additionally, except as otherwise provided,

22

the fund shall consist of all civil penalties received for violations of this chapter and interest earned

23

on balances in the fund.

24

     (d) The commission shall administer the social equity assistance fund and the authorized

25

disbursement of funds, as appropriated by the general assembly. In consultation with the cannabis

26

advisory board, the commission shall promulgate rules and regulations establishing the criteria,

27

eligibility, qualifications and process for administering the disbursement of funds from the social

28

equity assistance fund.

29

     (e) Reporting. Beginning September 1, 2023, and each year thereafter, the commission

30

shall annually report to the governor and the general assembly on the outcomes and effectiveness

31

of this section that shall include, but not be limited to, the following:

32

     (1) The number of persons or businesses receiving assistance under this section;

33

     (2) The amount in financial assistance awarded in the aggregate, in addition to the amount

34

of grants awarded;

 

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1

     (3) If applicable, the number of new jobs and other forms of economic impact created as a

2

result of assistance from the social equity assistance fund.

3

     (f) Fee Waivers.

4

     (1) For social equity applicants as defined in § 21-28.11-3, the commission may waive up

5

to one hundred percent (100%) of any nonrefundable license application fees or any nonrefundable

6

fees associated with acquiring a license to operate a cannabis establishment, pursuant to rules and

7

regulations promulgate by the commission in consultation with the cannabis advisory board.

8

     (2) If the commission determines that an applicant who applied as a social equity applicant

9

is not eligible for social equity status, the applicant shall be provided an additional ten (10) days to

10

provide alternative evidence that the applicant qualifies as a social equity applicant. Alternatively,

11

the applicant may pay all required fees and be considered as a non-social equity applicant. If the

12

applicant cannot do either, then any application fee shall be forfeited and the application process

13

shall be terminated.

14

     (g) Transfers of cannabis establishment licenses awarded to a social equity applicant are

15

subject to all other provisions of this chapter, and applicable law; provided however, that a license

16

issued to a social equity applicant shall only be transferred to another qualified social equity

17

applicant as determined by the commission.

18

     (h) Reporting.

19

     (1) By September 1, 2023, and on the first day of September of every year thereafter, or

20

upon request by the commission, each cannabis establishment licensed under this chapter and § 21-

21

28.6-12 ("The Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act") shall report to

22

commission, on a form to be provided by the commission, information that will allow it to assess

23

the extent of diversity in the medical and adult use cannabis industry and methods for further

24

reducing or eliminating any identified barriers to entry, including without limitation, access to

25

capital.

26

     (2) Failure of a cannabis establishment to respond to the request of the commission to

27

complete the form, report, and any other request for information may be grounds for disciplinary

28

action by the commission pursuant to this chapter. The information to be collected shall identify,

29

without limitation, the following:

30

     (i) The number and percentage of licenses provided to social equity applicants;

31

     (ii) The total number and percentage of employees in the cannabis industry who meet the

32

criteria in the definition of social equity applicant; and

33

     (iii) Recommendations on reducing or eliminating any identified barriers to entry,

34

including access to capital, in the cannabis industry.

 

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1

     21-28.11-32. Severability.

2

     If any provision of this chapter or its application thereof to any person or circumstance is

3

held invalid, such invalidity shall not affect other provisions or applications of this chapter, which

4

can be given effect without the invalid provision or application, and to this end the provisions of

5

this chapter are declared to be severable.

6

     SECTION 2. Sections 44-49-1, 44-49-2, 44-49-4, 44-49-5, 44-49-7, 44-49-8, 44-49-9, 44-

7

49-9.1, 44-49-10, 44-49-11 and 44-49-12 of the General Laws in Chapter 44-49 entitled "Taxation

8

of Marijuana and Controlled Substances" are hereby amended to read as follows:

9

     44-49-1. Short title.

10

     This chapter shall be known as the "Marijuana and Controlled Substances Taxation Act".

11

     44-49-2. Definitions.

12

     (a) "Controlled substance" means any drug or substance, whether real or counterfeit, as

13

defined in § 21-28-1.02(8), that is held, possessed, transported, transferred, sold, or offered to be

14

sold in violation of Rhode Island laws. "Controlled substance" does not include marijuana.

15

     (b) "Dealer" means a person who in violation of Rhode Island law manufactures, produces,

16

ships, transports, or imports into Rhode Island or in any manner acquires or possesses more than

17

forty-two and one half (42.5) grams of marijuana, or seven (7) or more grams of any controlled

18

substance, or ten (10) or more dosage units of any controlled substance which is not sold by weight.

19

A quantity of marijuana or a controlled substance is measured by the weight of the substance

20

whether pure or impure or dilute, or by dosage units when the substance is not sold by weight, in

21

the dealer's possession. A quantity of a controlled substance is dilute if it consists of a detectable

22

quantity of pure controlled substance and any excipients or fillers.

23

     (c) "Marijuana" means any marijuana, whether real or counterfeit, as defined in § 21-28-

24

1.02(30), that is held, possessed, transported, transferred, sold, or offered to be sold in violation of

25

Rhode Island laws.

26

     44-49-4. Rules.

27

     The tax administrator may adopt rules necessary to enforce this chapter. The tax

28

administrator shall adopt a uniform system of providing, affixing, and displaying official stamps,

29

official labels, or other official indicia for marijuana and controlled substances on which a tax is

30

imposed.

31

     44-49-5. Tax payment required for possession.

32

     No dealer may possess any marijuana or controlled substance upon which a tax is imposed

33

under this chapter unless the tax has been paid on the marijuana or a controlled substance as

34

evidenced by a stamp or other official indicia.

 

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1

     44-49-7. Pharmaceuticals.

2

     Nothing in this chapter shall require persons lawfully in possession of marijuana or a

3

controlled substance to pay the tax required under this chapter.

4

     44-49-8. Measurement.

5

     For the purpose of calculating this tax, a quantity of marijuana or a controlled substance is

6

measured by the weight of the substance whether pure or impure or dilute, or by dosage units when

7

the substance is not sold by weight, in the dealer's possession. A quantity of a controlled substance

8

is dilute if it consists of a detectable quantity of pure controlled substance and any excipients or

9

fillers.

10

     44-49-9. Tax rate.

11

     A tax is imposed on marijuana and controlled substances as defined in § 44-49-2 at the

12

following rates:

13

     (1) On each gram of marijuana, or each portion of a gram, three dollars and fifty cents

14

($3.50); and

15

     (2)(1) On each gram of controlled substance, or portion of a gram, two hundred dollars

16

($200); or

17

     (3)(2) On each ten (10) dosage units of a controlled substance that is not sold by weight,

18

or portion of the dosage units, four hundred dollars ($400).

19

     44-49-9.1. Imposition of tax, interest and liens.

20

     (a) Any law enforcement agency seizing marijuana and/or controlled substances as defined

21

in § 44-49-2 in the quantities set forth in that section shall report to the division of taxation no later

22

than the twenty-fifth (25th) of each month, the amount of all marijuana and controlled substances

23

seized during the previous month and the name and address of each dealer from whom the

24

marijuana and controlled substances were seized.

25

     (b) The tax administrator shall assess the dealer for any tax due at the rate provided by §

26

44-49-9. The tax shall be payable within fifteen (15) days after its assessment and, if not paid when

27

due, shall bear interest from the date of its assessment at the rate provided in § 44-1-7 until paid.

28

     (c) The tax administrator may file a notice of tax lien upon the real property of the dealer

29

located in this state immediately upon mailing a notice of assessment to the dealer at the address

30

listed in the report of the law enforcement agency. The tax administrator may discharge the lien

31

imposed upon the filing of a bond satisfactory to the tax administrator in an amount equal to the

32

tax, interest and penalty imposed under this chapter.

33

     44-49-10. Penalties -- Criminal provisions.

34

     (a) Penalties. Any dealer violating this chapter is subject to a penalty of one hundred

 

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1

percent (100%) of the tax in addition to the tax imposed by § 44-49-9. The penalty will be collected

2

as part of the tax.

3

     (b) Criminal penalty; sale without affixed stamps. In addition to the tax penalty imposed,

4

a dealer distributing or possessing marijuana or controlled substances without affixing the

5

appropriate stamps, labels, or other indicia is guilty of a crime and, upon conviction, may be

6

sentenced to imprisonment for not more than five (5) years, or to payment of a fine of not more

7

than ten thousand dollars ($10,000), or both.

8

     (c) Statute of limitations. An indictment may be found and filed, or a complaint filed,

9

upon any criminal offense specified in this section, in the proper court within six (6) years after the

10

commission of this offense.

11

     44-49-11. Stamp price.

12

     Official stamps, labels, or other indicia to be affixed to all marijuana or controlled

13

substances shall be purchased from the tax administrator. The purchaser shall pay one hundred

14

percent (100%) of face value for each stamp, label, or other indicia at the time of the purchase.

15

     44-49-12. Payment due.

16

     (a) Stamps affixed. When a dealer purchases, acquires, transports, or imports into this state

17

marijuana or controlled substances on which a tax is imposed by § 44-49-9, and if the indicia

18

evidencing the payment of the tax have not already been affixed, the dealer shall have them

19

permanently affixed on the marijuana or controlled substance immediately after receiving the

20

substance. Each stamp or other official indicia may be used only once.

21

     (b) Payable on possession. Taxes imposed upon marijuana or controlled substances by this

22

chapter are due and payable immediately upon acquisition or possession in this state by a dealer.

23

     SECTION 3. Title 44 of the General Laws entitled "TAXATION" is hereby amended by

24

adding thereto the following chapter:

25

CHAPTER 70

26

CANNABIS TAX

27

     44-70-1. Definitions.

28

     (a) As used in this chapter, the following words shall, unless the context clearly requires

29

otherwise, have the following meanings:

30

     (1) ''Administrator'' means the state tax administrator in the department of revenue as set

31

forth in chapter 1 of title 44.

32

     (2) "Cannabis control commission" means the entity established as set forth in chapter

33

28.11 of title 21.

34

     (3) ''Cannabis,'' ''Marijuana establishment,'' "Marijuana paraphernalia," ''Marijuana

 

LC003594 - Page 64 of 115

1

products'' and ''Marijuana retailer'', shall have the same meaning as defined in chapter 28.11 of title

2

21.

3

     (4) "Local cannabis excise tax" means the tax set forth in § 44-70-3.

4

     (5) "State cannabis excise tax" means the tax set forth in § 44-70-2.

5

     44-70-2. State cannabis excise tax -- Rate -- Payment.

6

     (a) Except for a sale in compliance with the provisions of chapter 28.6 of the title 21, a

7

state cannabis excise tax is hereby imposed upon the sale of cannabis or cannabis products by a

8

cannabis retailer to anyone other than a cannabis establishment at a rate of ten percent (10%) of the

9

total sales price received by the cannabis retailer as consideration for the sale of cannabis or

10

cannabis products. The state cannabis excise tax shall be levied in addition to any sales and use

11

state tax imposed upon the sale of property or services as provided in chapter 18 of title 44 and

12

shall be paid by a cannabis retailer to the administrator at the time provided for filing the return

13

required by chapters 18 and 19 of title 44.

14

     (b) The assessment, collection and enforcement of the state cannabis excise tax shall be

15

pursuant to the provisions of chapters 18 and 19 of title 44 and paid to the administrator by the

16

retailer at the time and in the manner prescribed for sales tax in § 44-19-10. The retailer shall add

17

the tax imposed by this section to the sales price or charge, and when added the tax constitutes a

18

part of the price or charge, is a debt from the consumer or user to the retailer and is recoverable at

19

law in the same manner as other debts.

20

     (c) Failure to pay the state cannabis excise tax to the state, or any amount of tax required

21

to be collected and paid to the state, shall result in interest at the annual rate provided by § 44-1-7

22

from the date on which the tax or amount of the tax required to be collected became due and payable

23

to the state until date of payment.

24

     44-70-3. Local cannabis excise tax.

25

     (a) Except for a sale in compliance with the provisions of chapter 28.6 of title 21, a city or

26

town shall impose a local cannabis excise tax upon sale or transfer of cannabis or cannabis products

27

by a cannabis retailer operating within the city or town to anyone other than a cannabis

28

establishment at a rate of three percent (3%) of the total sales price received by the cannabis retailer

29

as consideration for the sale of cannabis or cannabis products.

30

     (b) The assessment, collection and enforcement of the local cannabis excise tax shall be

31

pursuant to the provisions of chapters 18 and 19 of title 44 and paid to the tax administrator by the

32

retailer at the time and in the manner proscribed for sales tax in § 44-19-10. The retailer shall add

33

the tax imposed by this section to the sales price or charge, and when added the tax constitutes a

34

part of the price or charge, is a debt from the consumer or user to the retailer, and is recoverable at

 

LC003594 - Page 65 of 115

1

law in the same manner as other debts.

2

     (c) All sums received by the division of taxation under this section as local cannabis excise

3

tax or associated amounts as penalties, forfeitures, interest, costs of suit, and fines for failure to

4

properly pay taxes due pursuant to the provisions of this section, shall be distributed at least

5

quarterly and credited and paid by the state treasurer to the city or town where the cannabis is

6

delivered.

7

     44-70-4. Exemptions.

8

     The state cannabis excise tax and the local cannabis excise tax provided by this chapter

9

shall not apply to the sale of cannabis or cannabis products by a medical marijuana treatment center

10

as defined in § 21-28.11-3 to a registered primary caregiver to a qualifying patient as defined in §

11

21-28.6-3, cardholder, compassion center cardholder, or authorized purchaser pursuant to chapter

12

28.6 of title 21.

13

     44-70-5. Application of tax revenue.

14

     The administrator shall deposit revenue collected pursuant to this chapter from the state

15

cannabis excise tax and the sales tax into the general fund.

16

     44-70-6. Rates of taxation.

17

     The general assembly may adjust the rates of taxation provided for in this chapter at any

18

time. The cannabis control commission may make such recommendations to the general assembly,

19

as the commission deems appropriate in regard to the rate of taxation set forth in this chapter.

20

     SECTION 4. Sections 21-28.6-6, 21-28.6-12 and 21-28.6-17 of the General Laws in

21

Chapter 21-28.6 entitled "The Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act"

22

are hereby amended to read as follows:

23

     21-28.6-6. Administration of departments of health and business regulation

24

regulations.

25

     (a) The department of health shall issue registry identification cards to qualifying patients

26

who submit the following, in accordance with the department's regulations. Applications shall

27

include but not be limited to:

28

     (1) Written certification as defined in § 21-28.6-3;

29

     (2) Application fee, as applicable;

30

     (3) Name, address, and date of birth of the qualifying patient; provided, however, that if

31

the patient is homeless, no address is required;

32

     (4) Name, address, and telephone number of the qualifying patient's practitioner;

33

     (5) Whether the patient elects to grow medical marijuana plants for himself or herself; and

34

     (6) Name, address, and date of birth of one primary caregiver of the qualifying patient and

 

LC003594 - Page 66 of 115

1

any authorized purchasers for the qualifying patient, if any primary caregiver or authorized

2

purchaser is chosen by the patient or allowed in accordance with regulations promulgated by the

3

departments of health or business regulation.

4

     (b) The department of health shall not issue a registry identification card to a qualifying

5

patient under the age of eighteen (18) unless:

6

     (1) The qualifying patient's practitioner has explained the potential risks and benefits of the

7

medical use of marijuana to the qualifying patient and to a parent, guardian, or person having legal

8

custody of the qualifying patient; and

9

     (2) A parent, guardian, or person having legal custody consents in writing to:

10

     (i) Allow the qualifying patient's medical use of marijuana;

11

     (ii) Serve as the qualifying patient's primary caregiver or authorized purchaser; and

12

     (iii) Control the acquisition of the marijuana, the dosage, and the frequency of the medical

13

use of marijuana by the qualifying patient.

14

     (c) The department of health shall renew registry identification cards to qualifying patients

15

in accordance with regulations promulgated by the department of health and subject to payment of

16

any applicable renewal fee.

17

     (d) The department of health shall not issue a registry identification card to a qualifying

18

patient seeking treatment for post-traumatic stress disorder (PTSD) under the age of eighteen (18).

19

     (e) The department of health shall verify the information contained in an application or

20

renewal submitted pursuant to this section, and shall approve or deny an application or renewal

21

within thirty-five (35) days of receiving it. The department may deny an application or renewal

22

only if the applicant did not provide the information required pursuant to this section, or if the

23

department determines that the information provided was falsified, or that the renewing applicant

24

has violated this chapter under their previous registration. Rejection of an application or renewal is

25

considered a final department action, subject to judicial review. Jurisdiction and venue for judicial

26

review are vested in the superior court.

27

     (f) If the qualifying patient's practitioner notifies the department of health in a written

28

statement that the qualifying patient is eligible for hospice care or chemotherapy, the department

29

of health and department of business regulation, as applicable, shall give priority to these

30

applications when verifying the information in accordance with subsection (e) and issue a registry

31

identification card to these qualifying patients, primary caregivers and authorized purchasers within

32

seventy-two (72) hours of receipt of the completed application. The departments shall not charge a

33

registration fee to the patient, caregivers or authorized purchasers named in the application. The

34

department of health may identify through regulation a list of other conditions qualifying a patient

 

LC003594 - Page 67 of 115

1

for expedited application processing.

2

     (g) Following the promulgation of regulations pursuant to § 21-28.6-5(c), the department

3

of business regulation may issue or renew a registry identification card to the qualifying patient

4

cardholder's primary caregiver, if any, who is named in the qualifying patient's approved

5

application. The department of business regulation shall verify the information contained in

6

applications and renewal forms submitted pursuant to this chapter prior to issuing any registry

7

identification card. The department of business regulation may deny an application or renewal if

8

the applicant or appointing patient did not provide the information required pursuant to this section,

9

or if the department determines that the information provided was falsified, or if the applicant or

10

appointing patient has violated this chapter under his or her previous registration or has otherwise

11

failed to satisfy the application or renewal requirements.

12

     (1) A primary caregiver applicant or an authorized purchaser applicant shall apply to the

13

bureau of criminal identification of the department of attorney general, department of public safety

14

division of state police, or local police department for a national criminal records check that shall

15

include fingerprints submitted to the Federal Bureau of Investigation. Upon the discovery of any

16

disqualifying information as defined in subsection (g)(5) of this section, and in accordance with the

17

rules promulgated by the director, the bureau of criminal identification of the department of

18

attorney general, department of public safety division of state police, or the local police department

19

shall inform the applicant, in writing, of the nature of the disqualifying information; and, without

20

disclosing the nature of the disqualifying information, shall notify the department of business

21

regulation or department of health, as applicable, in writing, that disqualifying information has been

22

discovered.

23

     (2) In those situations in which no disqualifying information has been found, the bureau of

24

criminal identification of the department of attorney general, department of public safety division

25

of state police, or the local police shall inform the applicant and the department of business

26

regulation or department of health, as applicable, in writing, of this fact.

27

     (3) The department of health or department of business regulation, as applicable, shall

28

maintain on file evidence that a criminal records check has been initiated on all applicants seeking

29

a primary caregiver registry identification card or an authorized purchaser registry identification

30

card and the results of the checks. The primary caregiver cardholder shall not be required to apply

31

for a national criminal records check for each patient he or she is connected to through the

32

department's registration process, provided that he or she has applied for a national criminal records

33

check within the previous two (2) years in accordance with this chapter. The department of health

34

and department of business regulation, as applicable, shall not require a primary caregiver

 

LC003594 - Page 68 of 115

1

cardholder or an authorized purchaser cardholder to apply for a national criminal records check

2

more than once every two (2) years.

3

     (4) Notwithstanding any other provision of this chapter, the department of business

4

regulation or department of health may revoke or refuse to issue any class or type of registry

5

identification card or license if it determines that failing to do so would conflict with any federal

6

law or guidance pertaining to regulatory, enforcement, and other systems that states, businesses, or

7

other institutions may implement to mitigate the potential for federal intervention or enforcement.

8

This provision shall not be construed to prohibit the overall implementation and administration of

9

this chapter on account of the federal classification of marijuana as a schedule I substance or any

10

other federal prohibitions or restrictions.

11

     (5) Information produced by a national criminal records check pertaining to a conviction

12

for any felony offense under chapter 28 of this title ("Rhode Island controlled substances act");

13

murder; manslaughter; rape; first-degree sexual assault; second-degree sexual assault; first-degree

14

child molestation; second-degree child molestation; kidnapping; first-degree arson; second-degree

15

arson; mayhem; robbery; burglary; breaking and entering; assault with a dangerous weapon; assault

16

or battery involving grave bodily injury; and/or assault with intent to commit any offense

17

punishable as a felony or a similar offense from any other jurisdiction shall result in a letter to the

18

applicant and the department of health or department of business regulation, as applicable,

19

disqualifying the applicant. If disqualifying information has been found, the department of health

20

or department of business regulation, as applicable, may use its discretion to issue a primary

21

caregiver registry identification card or an authorized purchaser registry identification card if the

22

applicant's connected patient is an immediate family member and the card is restricted to that

23

patient only.

24

     (6) The primary caregiver or authorized purchaser applicant shall be responsible for any

25

expense associated with the national criminal records check.

26

     (7) For purposes of this section, "conviction" means, in addition to judgments of conviction

27

entered by a court subsequent to a finding of guilty or a plea of guilty, those instances where the

28

defendant has entered a plea of nolo contendere and has received a sentence of probation and those

29

instances where a defendant has entered into a deferred sentence agreement with the attorney

30

general.

31

     (8) The office of cannabis regulation may adopt rules and regulations based on federal

32

guidance provided those rules and regulations are designed to comply with federal guidance and

33

mitigate federal enforcement against the registrations and licenses issued under this chapter.

34

     (h)(1) On or before December 31, 2016, the department of health shall issue registry

 

LC003594 - Page 69 of 115

1

identification cards within five (5) business days of approving an application or renewal that shall

2

expire two (2) years after the date of issuance.

3

     (2) Effective January 1, 2017, and thereafter, the department of health or the department of

4

business regulation, as applicable, shall issue registry identification cards within five (5) business

5

days of approving an application or renewal that shall expire one year after the date of issuance.

6

     (3) Registry identification cards shall contain:

7

     (i) The date of issuance and expiration date of the registry identification card;

8

     (ii) A random registry identification number;

9

     (iii) A photograph; and

10

     (iv) Any additional information as required by regulation of the department of health or

11

business regulation as applicable.

12

     (i) Persons issued registry identification cards by the department of health or department

13

of business regulation shall be subject to the following:

14

     (1) A qualifying patient cardholder shall notify the department of health of any change in

15

his or her name, address, primary caregiver, or authorized purchaser; or if he or she ceases to have

16

his or her debilitating medical condition, within ten (10) days of the change.

17

     (2) A qualifying patient cardholder who fails to notify the department of health of any of

18

these changes is responsible for a civil infraction, punishable by a fine of no more than one hundred

19

fifty dollars ($150). If the patient cardholder has ceased to suffer from a debilitating medical

20

condition, the card shall be deemed null and void and the person shall be liable for any other

21

penalties that may apply to the person's nonmedical use of marijuana.

22

     (3) A primary caregiver cardholder or authorized purchaser shall notify the issuing

23

department of any change in his or her name or address within ten (10) days of the change. A

24

primary caregiver cardholder or authorized purchaser who fails to notify the department of any of

25

these changes is responsible for a civil infraction, punishable by a fine of no more than one hundred

26

fifty dollars ($150).

27

     (4) When a qualifying patient cardholder or primary caregiver cardholder notifies the

28

department of health or department of business regulation, as applicable, of any changes listed in

29

this subsection, the department of health or department of business regulation, as applicable, shall

30

issue the qualifying patient cardholder and each primary caregiver cardholder a new registry

31

identification card within ten (10) days of receiving the updated information and a ten-dollar

32

($10.00) fee.

33

     (5) When a qualifying patient cardholder changes his or her primary caregiver or authorized

34

purchaser, the department of health or department of business regulation, as applicable, shall notify

 

LC003594 - Page 70 of 115

1

the primary caregiver cardholder or authorized purchaser within ten (10) days. The primary

2

caregiver cardholder's protections as provided in this chapter as to that patient shall expire ten (10)

3

days after notification by the issuing department. If the primary caregiver cardholder or authorized

4

purchaser is connected to no other qualifying patient cardholders in the program, he or she must

5

return his or her registry identification card to the issuing department.

6

     (6) If a cardholder or authorized purchaser loses his or her registry identification card, he

7

or she shall notify the department that issued the card and submit a ten-dollar ($10.00) fee within

8

ten (10) days of losing the card. Within five (5) days, the department of health or department of

9

business regulation shall issue a new registry identification card with a new random identification

10

number.

11

     (7) Effective January 1, 2019, if a patient cardholder chooses to alter his or her registration

12

with regard to the growing of medical marijuana for himself or herself, he or she shall notify the

13

department prior to the purchase of medical marijuana tags or the growing of medical marijuana

14

plants.

15

     (8) If a cardholder or authorized purchaser willfully violates any provision of this chapter

16

as determined by the department of health or the department of business regulation, his or her

17

registry identification card may be revoked.

18

     (j) Possession of, or application for, a registry identification card shall not constitute

19

probable cause or reasonable suspicion, nor shall it be used to support the search of the person or

20

property of the person possessing or applying for the registry identification card, or otherwise

21

subject the person or property of the person to inspection by any governmental agency.

22

     (k)(1) Applications and supporting information submitted by qualifying patients, including

23

information regarding their primary caregivers, authorized purchaser, and practitioners, are

24

confidential and protected in accordance with the federal Health Insurance Portability and

25

Accountability Act of 1996, as amended, and shall be exempt from the provisions of chapter 2 of

26

title 38 et seq. (Rhode Island access to public records act) and not subject to disclosure, except to

27

authorized employees of the departments of health and business regulation as necessary to perform

28

official duties of the departments, and pursuant to subsections (l) and (m).

29

     (2) The application for a qualifying patient's registry identification card shall include a

30

question asking whether the patient would like the department of health to notify him or her of any

31

clinical studies about marijuana's risk or efficacy. The department of health shall inform those

32

patients who answer in the affirmative of any such studies it is notified of, that will be conducted

33

in Rhode Island. The department of health may also notify those patients of medical studies

34

conducted outside of Rhode Island.

 

LC003594 - Page 71 of 115

1

     (3) The department of health and the department of business regulation, as applicable, shall

2

maintain a confidential list of the persons to whom the department of health or department of

3

business regulation has issued authorized patient, primary caregiver, and authorized purchaser

4

registry identification cards. Individual names and other identifying information on the list shall be

5

confidential, exempt from the provisions of Rhode Island access to public records, chapter 2 of title

6

38, and not subject to disclosure, except to authorized employees of the departments of health and

7

business regulation as necessary to perform official duties of the departments and pursuant to

8

subsections (l) and (m) of this section.

9

     (l) Notwithstanding subsections (k) and (m) of this section, the departments of health and

10

business regulation, as applicable, shall verify to law enforcement personnel whether a registry

11

identification card is valid and may provide additional information to confirm whether a cardholder

12

is compliant with the provisions of this chapter and the regulations promulgated hereunder. The

13

department of business regulation shall verify to law enforcement personnel whether a registry

14

identification card is valid and may confirm whether the cardholder is compliant with the provisions

15

of this chapter, or the cannabis control commission may verify if a sale is within the provisions of

16

chapter 28.11 of title 21 and the regulations promulgated hereunder. This verification may occur

17

through the use of a shared database, provided that any medical records or confidential information

18

in this database related to a cardholder's specific medical condition is protected in accordance with

19

subsection (k)(1).

20

     (m) It shall be a crime, punishable by up to one hundred eighty (180) days in jail and a one

21

thousand dollar ($1,000) fine, for any person, including an employee or official of the departments

22

of health, business regulation, public safety, or another state agency or local government, to breach

23

the confidentiality of information obtained pursuant to this chapter. Notwithstanding this provision,

24

the department of health and department of business regulation employees may notify law

25

enforcement about falsified or fraudulent information submitted to the department or violations of

26

this chapter. Nothing in this act shall be construed as to prohibit law enforcement, public safety,

27

fire, or building officials from investigating violations of, or enforcing state law.

28

     (n) On or before the fifteenth day of the month following the end of each quarter of the

29

fiscal year, the department of health and the department of business regulation shall report to the

30

governor, the speaker of the house of representatives, and the president of the senate on applications

31

for the use of marijuana for symptom relief. The report shall provide:

32

     (1) The number of applications for registration as a qualifying patient, primary caregiver,

33

or authorized purchaser that have been made to the department of health and the department of

34

business regulation during the preceding quarter, the number of qualifying patients, primary

 

LC003594 - Page 72 of 115

1

caregivers, and authorized purchasers approved, the nature of the debilitating medical conditions

2

of the qualifying patients, the number of registrations revoked, and the number and specializations,

3

if any, of practitioners providing written certification for qualifying patients.

4

     (o) On or before September 30 of each year, the department of health and the department

5

of business regulation, as applicable, shall report to the governor, the speaker of the house of

6

representatives, and the president of the senate on the use of marijuana for symptom relief. The

7

report shall provide:

8

     (1) The total number of applications for registration as a qualifying patient, primary

9

caregiver, or authorized purchaser that have been made to the department of health and the

10

department of business regulation, the number of qualifying patients, primary caregivers, and

11

authorized purchasers approved, the nature of the debilitating medical conditions of the qualifying

12

patients, the number of registrations revoked, and the number and specializations, if any, of

13

practitioners providing written certification for qualifying patients;

14

     (2) The number of active qualifying patient, primary caregiver, and authorized purchaser

15

registrations as of June 30 of the preceding fiscal year;

16

     (3) An evaluation of the costs permitting the use of marijuana for symptom relief, including

17

any costs to law enforcement agencies and costs of any litigation;

18

     (4) Statistics regarding the number of marijuana-related prosecutions against registered

19

patients and caregivers, and an analysis of the facts underlying those prosecutions;

20

     (5) Statistics regarding the number of prosecutions against physicians for violations of this

21

chapter; and

22

     (6) Whether the United States Food and Drug Administration has altered its position

23

regarding the use of marijuana for medical purposes or has approved alternative delivery systems

24

for marijuana.

25

     (p) After June 30, 2018, the department of business regulation shall report to the speaker

26

of the house, senate president, the respective fiscal committee chairpersons, and fiscal advisors

27

within 60 days of the close of the prior fiscal year. The report shall provide:

28

     (1) The number of applications for registry identification cards to compassion center staff,

29

the number approved, denied and the number of registry identification cards revoked, and the

30

number of replacement cards issued;

31

     (2) The number of applications for compassion centers and licensed cultivators;

32

     (3) The number of marijuana plant tag sets ordered, delivered, and currently held within

33

the state;

34

     (4) The total revenue collections of any monies related to its regulator activities for the

 

LC003594 - Page 73 of 115

1

prior fiscal year, by the relevant category of collection, including enumerating specifically the total

2

amount of revenues foregone or fees paid at reduced rates pursuant to this chapter.

3

     21-28.6-12. Compassion centers.

4

     (a) A compassion center licensed under this section may acquire, possess, cultivate,

5

manufacture, deliver, transfer, transport, supply, or dispense medical marijuana, or related supplies

6

and educational materials, to registered qualifying patients and their registered primary caregivers

7

or authorized purchasers, or out-of-state patient cardholders or other marijuana establishment

8

licensees. Except as specifically provided to the contrary, all provisions of this chapter (the Edward

9

O. Hawkins and Thomas C. Slater medical marijuana act), apply to a compassion center unless the

10

provision(s) conflict with a provision contained in this section.

11

     (b) License of compassion centers -- authority of the departments of health and business

12

regulation:

13

     (1) Not later than ninety (90) days after the effective date of this chapter, the department

14

of health shall promulgate regulations governing the manner in which it shall consider applications

15

for licenses for compassion centers, including regulations governing:

16

     (i) The form and content of license and renewal applications;

17

     (ii) Minimum oversight requirements for compassion centers;

18

     (iii) Minimum record-keeping requirements for compassion centers;

19

     (iv) Minimum security requirements for compassion centers; and

20

     (v) Procedures for suspending, revoking, or terminating the license of compassion centers

21

that violate the provisions of this section or the regulations promulgated pursuant to this subsection.

22

     (2) Within ninety (90) days of the effective date of this chapter, the department of health

23

shall begin accepting applications for the operation of a single compassion center.

24

     (3) Within one hundred fifty (150) days of the effective date of this chapter, the department

25

of health shall provide for at least one public hearing on the granting of an application to a single

26

compassion center.

27

     (4) Within one hundred ninety (190) days of the effective date of this chapter, the

28

department of health shall grant a single license to a single compassion center, providing at least

29

one applicant has applied who meets the requirements of this chapter.

30

     (5) If at any time after fifteen (15) months after the effective date of this chapter, there is

31

no operational compassion center in Rhode Island, the department of health shall accept

32

applications, provide for input from the public, and issue a license for a compassion center if a

33

qualified applicant exists.

34

     (6) Within two (2) years of the effective date of this chapter, the department of health shall

 

LC003594 - Page 74 of 115

1

begin accepting applications to provide licenses for two (2) additional compassion centers. The

2

department shall solicit input from the public, and issue licenses if qualified applicants exist.

3

     (7)(i) Any time a compassion center license is revoked, is relinquished, or expires on or

4

before December 31, 2016, the department of health shall accept applications for a new compassion

5

center.

6

     (ii) Any time a compassion center license is revoked, is relinquished, or expires on or after

7

January 1, 2017, the department of business regulation shall accept applications for a new

8

compassion center.

9

     (8)(i) If at any time after three (3) years after the effective date of this chapter and on or

10

before December 31, 2016, fewer than three (3) compassion centers are holding valid licenses in

11

Rhode Island, the department of health shall accept applications for a new compassion center. If at

12

any time on or after January 1, 2017, fewer than three (3) compassion centers are holding valid

13

licenses in Rhode Island, the department of business regulation shall accept applications for a new

14

compassion center. There shall be nine (9) compassion centers that may hold valid licenses at one

15

time. If at any time on or after July 1, 2019, fewer than nine (9) compassion centers are holding

16

valid licenses in Rhode Island, the department of business regulation shall accept applications for

17

new compassion centers and shall continue the process until nine (9) licenses have been issued by

18

the department of business regulation.

19

     (9) Any compassion center application selected for approval by the department of health

20

on or before December 31, 2016, or selected for approval by the department of business regulation

21

on or after January 1, 2017, shall remain in full force and effect, notwithstanding any provisions of

22

this chapter to the contrary, and shall be subject to state law adopted herein and rules and regulations

23

adopted by the departments of health and business regulation subsequent to passage of this

24

legislation.

25

     (10) A licensed cultivator may apply for, and be issued, an available compassion center

26

license, provided that the licensed cultivation premises is disclosed on the compassion center

27

application as the permitted second location for growing medical marijuana in accordance with

28

subsection (c)(i) of this section. If a licensed cultivator is issued an available compassion center

29

license, their cultivation facility license will merge with and into their compassion center license in

30

accordance with regulations promulgated by the department of business regulation. Once merged,

31

the cultivation of medical marijuana may then be conducted under the compassion center license

32

in accordance with this section and the cultivation license will be considered null and void and of

33

no further force or effect.

34

     (c) Compassion center and agent applications and license:

 

LC003594 - Page 75 of 115

1

     (1) Each application for a compassion center shall be submitted in accordance with

2

regulations promulgated by the department of business regulation and shall include, but not be

3

limited to:

4

     (i) A non-refundable application fee paid to the department in the amount of ten thousand

5

dollars ($10,000);

6

     (ii) The proposed legal name and proposed articles of incorporation of the compassion

7

center;

8

     (iii) The proposed physical address of the compassion center, if a precise address has been

9

determined, or, if not, the general location where it would be located. This may include a second

10

location for the cultivation of medical marijuana;

11

     (iv) A description of the enclosed, locked facility that would be used in the cultivation of

12

medical marijuana;

13

     (v) The name, address, and date of birth of each principal officer and board member of the

14

compassion center;

15

     (vi) Proposed security and safety measures that shall include at least one security alarm

16

system for each location, planned measures to deter and prevent the unauthorized entrance into

17

areas containing marijuana and the theft of marijuana, as well as a draft, employee-instruction

18

manual including security policies, safety and security procedures, personal safety, and crime-

19

prevention techniques; and

20

     (vii) Proposed procedures to ensure accurate record keeping.

21

     (2)(i) For applications submitted on or before December 31, 2016, any time one or more

22

compassion center license applications are being considered, the department of health shall also

23

allow for comment by the public and shall solicit input from registered qualifying patients,

24

registered primary caregivers, and the towns or cities where the applicants would be located;

25

     (ii) For applications submitted on or after January 1, 2017, any time one or more

26

compassion center license applications are being considered, the department of business regulation

27

shall also allow for comment by the public and shall solicit input from registered qualifying

28

patients, registered primary caregivers, and the towns or cities where the applicants would be

29

located.

30

     (3) Each time a new compassion center license is issued, the decision shall be based upon

31

the overall health needs of qualified patients and the safety of the public, including, but not limited

32

to, the following factors:

33

     (i) Convenience to patients from areas throughout the state of Rhode Island;

34

     (ii) The applicant's ability to provide a steady supply to the registered qualifying patients

 

LC003594 - Page 76 of 115

1

in the state;

2

     (iii) The applicant's experience running a non-profit or business;

3

     (iv) The interests of qualifying patients regarding which applicant be granted a license;

4

     (v) The interests of the city or town where the dispensary would be located taking into

5

consideration need and population;

6

     (vi) Nothing herein shall prohibit more than one compassion center being geographically

7

located in any city or town;

8

     (vii) The sufficiency of the applicant's plans for record keeping and security, which records

9

shall be considered confidential healthcare information under Rhode Island law and are intended

10

to be deemed protected healthcare information for purposes of the Federal Health Insurance

11

Portability and Accountability Act of 1996, as amended; and

12

     (viii) The sufficiency of the applicant's plans for safety and security, including proposed

13

location, security devices employed, and staffing.

14

     (4) A compassion center approved by the department of health on or before December 31,

15

2016, shall submit the following to the department before it may begin operations:

16

     (i) A fee paid to the department in the amount of five thousand dollars ($5,000);

17

     (ii) The legal name and articles of incorporation of the compassion center;

18

     (iii) The physical address of the compassion center; this may include a second address for

19

the secure cultivation of marijuana;

20

     (iv) The name, address, and date of birth of each principal officer and board member of the

21

compassion center; and

22

     (v) The name, address, and date of birth of any person who will be an agent of, employee,

23

or volunteer of the compassion center at its inception.

24

     (5)(i) A compassion center approved or renewed by the department of business regulation

25

on or after January 1, 2017, but before July 1, 2019, shall submit materials pursuant to regulations

26

promulgated by the department of business regulation before it may begin operations:

27

     (A) A fee paid to the department in the amount of five thousand dollars ($5,000);

28

     (B) The legal name and articles of incorporation of the compassion center;

29

     (C) The physical address of the compassion center; this may include a second address for

30

the secure cultivation of medical marijuana;

31

     (D) The name, address, and date of birth of each principal officer and board member of the

32

compassion center;

33

     (E) The name, address, and date of birth of any person who will be an agent, employee, or

34

volunteer of the compassion center at its inception.

 

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1

     (ii) A compassion center approved or renewed by the department of business regulation on

2

or after July 1, 2019, shall submit materials pursuant to regulations promulgated by the department

3

of business regulation before it may begin operations, which shall include but not be limited to:

4

     (A) A fee paid to the department in the amount of five hundred thousand dollars

5

($500,000);

6

     (B) The legal name and articles of incorporation of the compassion center;

7

     (C) The physical address of the compassion center; this may include a second address for

8

the secure cultivation of medical marijuana;

9

     (D) The name, address, and date of birth of each principal officer and board member of the

10

compassion center, and any person who has a direct or indirect ownership interest in any marijuana

11

establishment licensee, which ownership interest shall include, but not be limited to, any interests

12

arising pursuant to the use of shared management companies, management agreements or other

13

agreements that afford third-party management or operational control, or other familial or business

14

relationships between compassion center or cultivator owners, members, officers, directors,

15

managers, investors, agents, or key persons that effect dual license interests as determined by the

16

department of business regulation;

17

     (E) The name, address, and date of birth of any person who will be an agent, employee, or

18

volunteer of the compassion center at its inception.

19

     (6) Except as provided in subsection (c)(7) of this section, the department of health or the

20

department of business regulation shall issue each principal officer, board member, agent,

21

volunteer, and employee of a compassion center a registry identification card or renewal card after

22

receipt of the person's name, address, date of birth; a fee in an amount established by the department

23

of health or the department of business regulation; and, except in the case of an employee,

24

notification to the department of health or the department of business regulation by the department

25

of public safety division of state police, attorney general's office, or local law enforcement that the

26

registry identification card applicant has not been convicted of a felony drug offense or has not

27

entered a plea of nolo contendere for a felony drug offense and received a sentence of probation.

28

Each card shall specify that the cardholder is a principal officer, board member, agent, volunteer,

29

or employee of a compassion center and shall contain the following:

30

     (i) The name, address, and date of birth of the principal officer, board member, agent,

31

volunteer, or employee;

32

     (ii) The legal name of the compassion center to which the principal officer, board member,

33

agent, volunteer, or employee is affiliated;

34

     (iii) A random identification number that is unique to the cardholder;

 

LC003594 - Page 78 of 115

1

     (iv) The date of issuance and expiration date of the registry identification card; and

2

     (v) A photograph, if the department of health or the department of business regulation

3

decides to require one.

4

     (7) Except as provided in this subsection, neither the department of health nor the

5

department of business regulation shall issue a registry identification card to any principal officer,

6

board member, or agent, of a compassion center who has been convicted of a felony drug offense

7

or has entered a plea of nolo contendere for a felony drug offense and received a sentence of

8

probation. If a registry identification card is denied, the compassion center will be notified in

9

writing of the purpose for denying the registry identification card. A registry identification card

10

may be granted if the offense was for conduct that occurred prior to the enactment of the Edward

11

O. Hawkins and Thomas C. Slater medical marijuana act or that was prosecuted by an authority

12

other than the state of Rhode Island and for which the Edward O. Hawkins and Thomas C. Slater

13

medical marijuana act would otherwise have prevented a conviction.

14

     (i) All registry identification card applicants shall apply to the department of public safety

15

division of state police, the attorney general's office, or local law enforcement for a national

16

criminal identification records check that shall include fingerprints submitted to the federal bureau

17

of investigation. Upon the discovery of a felony drug offense conviction or a plea of nolo

18

contendere for a felony drug offense with a sentence of probation, and in accordance with the rules

19

promulgated by the department of health and the department of business regulation, the department

20

of public safety division of state police, the attorney general's office, or local law enforcement shall

21

inform the applicant, in writing, of the nature of the felony and the department of public safety

22

division of state police shall notify the department of health or the department of business

23

regulation, in writing, without disclosing the nature of the felony, that a felony drug offense

24

conviction or a plea of nolo contendere for a felony drug offense with probation has been found.

25

     (ii) In those situations in which no felony drug offense conviction or plea of nolo

26

contendere for a felony drug offense with probation has been found, the department of public safety

27

division of state police, the attorney general's office, or local law enforcement shall inform the

28

applicant and the department of health or the department of business regulation, in writing, of this

29

fact.

30

     (iii) All registry identification card applicants, except for employees with no ownership,

31

equity, financial interest, or managing control of a marijuana establishment license, shall be

32

responsible for any expense associated with the criminal background check with fingerprints.

33

     (8) A registry identification card of a principal officer, board member, agent, volunteer,

34

employee, or any other designation required by the department of business regulation shall expire

 

LC003594 - Page 79 of 115

1

one year after its issuance, or upon the expiration of the licensed organization's license, or upon the

2

termination of the principal officer, board member, agent, volunteer, or employee's relationship

3

with the compassion center, whichever occurs first.

4

     (9) A compassion center cardholder shall notify and request approval from the department

5

of business regulation of any change in his or her name or address within ten (10) days of the

6

change. A compassion center cardholder who fails to notify the department of business regulation

7

of any of these changes is responsible for a civil infraction, punishable by a fine of no more than

8

one hundred fifty dollars ($150).

9

     (10) When a compassion center cardholder notifies the department of health or the

10

department of business regulation of any changes listed in this subsection, the department shall

11

issue the cardholder a new registry identification card within ten (10) days of receiving the updated

12

information and a ten-dollar ($10.00) fee.

13

     (11) If a compassion center cardholder loses his or her registry identification card, he or

14

she shall notify the department of health or the department of business regulation and submit a ten-

15

dollar ($10.00) fee within ten (10) days of losing the card. Within five (5) days, the department

16

shall issue a new registry identification card with new random identification number.

17

     (12) On or before December 31, 2016, a compassion center cardholder shall notify the

18

department of health of any disqualifying criminal convictions as defined in subsection (c)(7) of

19

this section. The department of health may choose to suspend and/or revoke his or her registry

20

identification card after the notification.

21

     (13) On or after January 1, 2017, a compassion center cardholder shall notify the

22

department of business regulation of any disqualifying criminal convictions as defined in

23

subsection (c)(7) of this section. The department of business regulation may choose to suspend

24

and/or revoke his or her registry identification card after the notification.

25

     (14) If a compassion center cardholder violates any provision of this chapter or regulations

26

promulgated hereunder as determined by the departments of health and business regulation, his or

27

her registry identification card may be suspended and/or revoked.

28

     (d) Expiration or termination of compassion center:

29

     (1) On or before December 31, 2016, a compassion center's license shall expire two (2)

30

years after its license is issued. On or after January 1, 2017, a compassion center's license shall

31

expire one year after its license is issued. The compassion center may submit a renewal application

32

beginning sixty (60) days prior to the expiration of its license.

33

     (2) The department of health or the department of business regulation shall grant a

34

compassion center's renewal application within thirty (30) days of its submission if the following

 

LC003594 - Page 80 of 115

1

conditions are all satisfied:

2

     (i) The compassion center submits the materials required under subsections (c)(4) and

3

(c)(5) of this section, including a five-hundred-thousand-dollar ($500,000) fee;

4

     (ii) The compassion center's license has never been suspended for violations of this chapter

5

or regulations issued pursuant to this chapter; and

6

     (iii) The department of business regulation finds that the compassion center is adequately

7

providing patients with access to medical marijuana at reasonable rates.

8

     (3) If the department of health or the department of business regulation determines that any

9

of the conditions listed in subsections (d)(2)(i) -- (iii) of this section have not been met, the

10

department may begin an open application process for the operation of a compassion center. In

11

granting a new license, the department of health or the department of business regulation shall

12

consider factors listed in subsection (c)(3) of this section.

13

     (4) The department of business regulation shall issue a compassion center one or more

14

thirty-day (30) temporary licenses after that compassion center's license would otherwise expire if

15

the following conditions are all satisfied:

16

     (i) The compassion center previously applied for a renewal, but the department had not yet

17

come to a decision;

18

     (ii) The compassion center requested a temporary license; and

19

     (iii) The compassion center has not had its license suspended or revoked due to violations

20

of this chapter or regulations issued pursuant to this chapter.

21

     (5) A compassion center's license shall be denied, suspended, or subject to revocation if

22

the compassion center:

23

     (i) Possesses an amount of marijuana exceeding the limits established by this chapter;

24

     (ii) Is in violation of the laws of this state;

25

     (iii) Is in violation of other departmental regulations;

26

     (iv) Employs or enters into a business relationship with a medical practitioner who provides

27

written certification of a qualifying patient's medical condition; or

28

     (v) If any compassion center owner, member, officer, director, manager, investor, agent,

29

or key person as defined in regulations promulgated by the department of business regulation, has

30

any interest, direct or indirect, in another compassion center or another licensed cultivator, except

31

as permitted in subsection (b)(10) of this section or pursuant to § 21-28.11-19. Prohibited interests

32

shall also include interests arising pursuant to the use of shared management companies,

33

management agreements, or other agreements that afford third-party management or operational

34

control, or other familial or business relationships between compassion center or cultivator owners,

 

LC003594 - Page 81 of 115

1

members, officers, directors, managers, investors, agents, or key persons that effect dual license

2

interests as determined by the department of business regulation.

3

     (e) Inspection. Compassion centers are subject to reasonable inspection by the department

4

of health, division of facilities regulation, and the department of business regulation. During an

5

inspection, the departments may review the compassion center's confidential records, including its

6

dispensing records, which shall track transactions according to qualifying patients' registry

7

identification numbers to protect their confidentiality.

8

     (f) Compassion center requirements:

9

     (1) A compassion center shall be operated on a not-for-profit basis for the mutual benefit

10

of its patients. A compassion center need not be recognized as a tax-exempt organization by the

11

Internal Revenue Service. A compassion center shall be subject to regulations promulgated by the

12

department of business regulation for general operations and record keeping, which shall include,

13

but not be limited to:

14

     (i) Minimum security and surveillance requirements;

15

     (ii) Minimum requirements for workplace safety and sanitation;

16

     (iii) Minimum requirements for product safety and testing;

17

     (iv) Minimum requirements for inventory tracking and monitoring;

18

     (v) Minimum requirements for the secure transport and transfer of medical marijuana;

19

     (vi) Minimum requirements to address odor mitigation;

20

     (vii) Minimum requirements for product packaging and labeling;

21

     (viii) Minimum requirements and prohibitions for advertising;

22

     (ix) Minimum requirements for the testing and destruction of marijuana. Wherever

23

destruction of medical marijuana and medical marijuana product is required to bring a person or

24

entity into compliance with any provision of this chapter, any rule or regulation promulgated

25

thereunder, or any administrative order issued in accordance therewith, the director of the

26

department of business regulation may designate his or her employees or agents to facilitate the

27

destruction;

28

     (x) A requirement that if a compassion center violates this chapter, or any regulation

29

thereunder, and the department of business regulation determines that violation does not pose an

30

immediate threat to public health or public safety, the compassion center shall pay to the department

31

of business regulation a fine of no less than five-hundred dollars ($500); and

32

     (xi) A requirement that if a compassion center violates this chapter, or any regulation

33

promulgated hereunder, and the department of business regulation determines that the violation

34

poses an immediate threat to public health or public safety, the compassion center shall pay to the

 

LC003594 - Page 82 of 115

1

department of business regulation a fine of no less than two thousand dollars ($2,000) and the

2

department shall be entitled to pursue any other enforcement action provided for under this chapter

3

and the regulations.

4

     (2) A compassion center may not be located within one thousand feet (1,000') of the

5

property line of a preexisting public or private school.

6

     (3) On or before December 31, 2016, a compassion center shall notify the department of

7

health within ten (10) days of when a principal officer, board member, agent, volunteer, or

8

employee ceases to work at the compassion center. On or after January 1, 2017, a compassion

9

center shall notify the department of business regulation within ten (10) days of when a principal

10

officer, board member, agent, volunteer, or employee ceases to work at the compassion center. His

11

or her card shall be deemed null and void and the person shall be liable for any penalties that may

12

apply to any nonmedical possession or use of marijuana by the person.

13

     (4)(i) On or before December 31, 2016, a compassion center shall notify the department of

14

health in writing of the name, address, and date of birth of any new principal officer, board member,

15

agent, volunteer, or employee and shall submit a fee in an amount established by the department

16

for a new registry identification card before that person begins his or her relationship with the

17

compassion center;

18

     (ii) On or after January 1, 2017, a compassion center shall notify the department of business

19

regulation, in writing, of the name, address, and date of birth of any new principal officer, board

20

member, agent, volunteer, or employee and shall submit a fee in an amount established by the

21

department of business regulation for a new registry identification card before that person begins

22

his or her relationship with the compassion center;

23

     (5) A compassion center shall implement appropriate security measures to deter and

24

prevent the unauthorized entrance into areas containing marijuana and the theft of marijuana and

25

shall ensure that each location has an operational security alarm system. Each compassion center

26

shall request that the department of public safety division of state police visit the compassion center

27

to inspect the security of the facility and make any recommendations regarding the security of the

28

facility and its personnel within ten (10) days prior to the initial opening of each compassion center.

29

The recommendations shall not be binding upon any compassion center, nor shall the lack of

30

implementation of the recommendations delay or prevent the opening or operation of any center.

31

If the department of public safety division of state police does not inspect the compassion center

32

within the ten-day (10) period, there shall be no delay in the compassion center's opening.

33

     (6) The operating documents of a compassion center shall include procedures for the

34

oversight of the compassion center and procedures to ensure accurate record keeping.

 

LC003594 - Page 83 of 115

1

     (7) A compassion center is prohibited from acquiring, possessing, cultivating,

2

manufacturing, delivering, transferring, transporting, supplying, or dispensing marijuana for any

3

purpose except to assist patient cardholders with the medical use of marijuana directly or through

4

the qualifying patient's primary caregiver or authorized purchaser. This provision shall not apply

5

to hybrid cannabis retailers authorized pursuant to the provisions of § 21-28.11-10.

6

     (8) All principal officers and board members of a compassion center must be residents of

7

the state of Rhode Island.

8

     (9) Each time a new, registered, qualifying patient visits a compassion center, it shall

9

provide the patient with a frequently-asked-questions sheet, designed by the department, that

10

explains the limitations on the right to use medical marijuana under state law.

11

     (10) Effective July 1, 2017, each compassion center shall be subject to any regulations

12

promulgated by the departments of health and business regulation that specify how marijuana must

13

be tested for items, included but not limited to, cannabinoid profile and contaminants.

14

     (11) Effective January 1, 2017, each compassion center shall be subject to any product

15

labeling requirements promulgated by the department of business regulation.

16

     (12) Each compassion center shall develop, implement, and maintain on the premises

17

employee, volunteer, and agent policies and procedures to address the following requirements:

18

     (i) A job description or employment contract developed for all employees and agents, and

19

a volunteer agreement for all volunteers, that includes duties, authority, responsibilities,

20

qualifications, and supervision; and

21

     (ii) Training in, and adherence to, state confidentiality laws.

22

     (13) Each compassion center shall maintain a personnel record for each employee, agent,

23

and volunteer that includes an application and a record of any disciplinary action taken.

24

     (14) Each compassion center shall develop, implement, and maintain on the premises an

25

on-site training curriculum, or enter into contractual relationships with outside resources capable

26

of meeting employee training needs, that includes, but is not limited to, the following topics:

27

     (i) Professional conduct, ethics, and patient confidentiality; and

28

     (ii) Informational developments in the field of medical use of marijuana.

29

     (15) Each compassion center entity shall provide each employee, agent, and volunteer, at

30

the time of his or her initial appointment, training in the following:

31

     (i) The proper use of security measures and controls that have been adopted; and

32

     (ii) Specific procedural instructions on how to respond to an emergency, including robbery

33

or violent accident.

34

     (16) All compassion centers shall prepare training documentation for each employee and

 

LC003594 - Page 84 of 115

1

volunteer and have employees and volunteers sign a statement indicating the date, time, and place

2

the employee and volunteer received the training and topics discussed, to include name and title of

3

presenters. The compassion center shall maintain documentation of an employee's and a volunteer's

4

training for a period of at least six (6) months after termination of an employee's employment or

5

the volunteer's volunteering.

6

     (g) Maximum amount of usable marijuana to be dispensed:

7

     (1) A compassion center or principal officer, board member, agent, volunteer, or employee

8

of a compassion center may not dispense more than two and one-half ounces (2.5 oz.) of usable

9

marijuana, or its equivalent, to a qualifying patient directly or through a qualifying patient's primary

10

caregiver or authorized purchaser during a fifteen-day (15) period.

11

     (2) A compassion center or principal officer, board member, agent, volunteer, or employee

12

of a compassion center may not dispense an amount of usable marijuana, or its equivalent, to a

13

patient cardholder, qualifying patient, a qualifying patient's primary caregiver, or a qualifying

14

patient's authorized purchaser that the compassion center, principal officer, board member, agent,

15

volunteer, or employee knows would cause the recipient to possess more marijuana than is

16

permitted under the Edward O. Hawkins and Thomas C. Slater medical marijuana act.

17

     (3) Compassion centers shall utilize a database administered by the departments of health

18

and business regulation. The database shall contain all compassion centers' transactions according

19

to qualifying patients', authorized purchasers', and primary caregivers' registry identification

20

numbers to protect the confidentiality of patient personal and medical information. Compassion

21

centers will not have access to any applications or supporting information submitted by qualifying

22

patients, authorized purchasers or primary caregivers. Before dispensing marijuana to any patient

23

or authorized purchaser, the compassion center must utilize the database to ensure that a qualifying

24

patient is not dispensed more than two and one-half ounces (2.5 oz.) of usable marijuana or its

25

equivalent directly or through the qualifying patient's primary caregiver or authorized purchaser

26

during a fifteen-day (15) period.

27

     (4) A compassion center operating as a hybrid cannabis retailer authorized to conduct adult

28

use cannabis sales pursuant to the provisions of § 21-28.11-10 may sell up to one ounce (1 oz.) of

29

non-medical cannabis to a person at least twenty-one (21) years of age as an intended consumer, in

30

accordance with the provisions of chapter 28.11 of title 21 provided the cannabis product sold for

31

adult use consumption shall not exceed the potency restrictions provided in § 21-28.11-5 or such

32

lesser potency promulgated by the commission.

33

     (h) Immunity:

34

     (1) No licensed compassion center shall be subject to prosecution; search, except by the

 

LC003594 - Page 85 of 115

1

departments pursuant to subsection (e) of this section; seizure; or penalty in any manner, or denied

2

any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business,

3

occupational, or professional licensing board or entity, solely for acting in accordance with this

4

section to assist registered qualifying patients.

5

     (2) No licensed compassion center shall be subject to prosecution, seizure, or penalty in

6

any manner, or denied any right or privilege, including, but not limited to, civil penalty or

7

disciplinary action, by a business, occupational, or professional licensing board or entity, for

8

selling, giving, or distributing marijuana in whatever form, and within the limits established by, the

9

department of health or the department of business regulation to another registered compassion

10

center.

11

     (3) No principal officers, board members, agents, volunteers, or employees of a registered

12

compassion center shall be subject to arrest, prosecution, search, seizure, or penalty in any manner,

13

or denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by

14

a business, occupational, or professional licensing board or entity, solely for working for or with a

15

compassion center to engage in acts permitted by this section.

16

     (4) No state employee shall be subject to arrest, prosecution or penalty in any manner, or

17

denied any right or privilege, including, but not limited to, civil penalty, disciplinary action,

18

termination, or loss of employee or pension benefits, for any and all conduct that occurs within the

19

scope of his or her employment regarding the administration, execution and/or enforcement of this

20

act, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.

21

     (i) Prohibitions:

22

     (1) A compassion center must limit its inventory of seedlings, plants, and marijuana to

23

reflect the projected needs of qualifying patients;

24

     (2) A compassion center may not dispense, deliver, or otherwise transfer marijuana to a

25

person other than a patient cardholder or to a qualified patient's primary caregiver or authorized

26

purchaser. This provision shall not apply to hybrid cannabis retailers authorized pursuant to the

27

provisions of § 21-28.11-10;

28

     (3) A compassion center may not procure, purchase, transfer, or sell marijuana to or from

29

any entity other than a marijuana establishment licensee in accordance with the provisions of this

30

chapter and chapter 28.11 of title 21 and the rules and regulations promulgated by the commission;

31

     (4) A person found to have violated subsection (h)(2) or (h)(3) of this section may not be

32

an employee, agent, volunteer, principal officer, or board member of any compassion center;

33

     (5) An employee, agent, volunteer, principal officer or board member of any compassion

34

center found in violation of subsection (h)(2) or (h)(3) of this section shall have his or her registry

 

LC003594 - Page 86 of 115

1

identification revoked immediately; and

2

     (6) No person who has been convicted of a felony drug offense or has entered a plea of

3

nolo contendere for a felony drug offense with a sentence of probation may be the principal officer,

4

board member, or agent of a compassion center unless the department has determined that the

5

person's conviction was for the medical use of marijuana or assisting with the medical use of

6

marijuana in accordance with the terms and conditions of this chapter. A person who is employed

7

by or is an agent, volunteer, principal officer, or board member of a compassion center in violation

8

of this section is guilty of a civil violation punishable by a fine of up to one thousand dollars

9

($1,000). A subsequent violation of this section is a misdemeanor; and

10

     (7) Upon enactment of chapter 28.11 of title 21, no compassion center shall accept any out-

11

of-state medical marijuana card unless the patient also possesses and produces a valid government

12

identification demonstrating residency in the same state that issued the medical marijuana card.

13

     (j) Legislative oversight committee:

14

     (1) The general assembly shall appoint a nine-member (9) oversight committee comprised

15

of: one member of the house of representatives; one member of the senate; one physician to be

16

selected from a list provided by the Rhode Island medical society; one nurse to be selected from a

17

list provided by the Rhode Island state nurses association; two (2) registered qualifying patients;

18

one registered primary caregiver; one patient advocate to be selected from a list provided by the

19

Rhode Island patient advocacy coalition; and the superintendent of the department of public safety,

20

or his/her designee.

21

     (2) The oversight committee shall meet at least six (6) times per year for the purpose of

22

evaluating and making recommendations to the general assembly regarding:

23

     (i) Patients' access to medical marijuana;

24

     (ii) Efficacy of compassion centers;

25

     (iii) Physician participation in the Medical Marijuana Program;

26

     (iv) The definition of qualifying medical condition; and

27

     (v) Research studies regarding health effects of medical marijuana for patients.

28

     (3) On or before January 1 of every even numbered year, the oversight committee shall

29

report to the general assembly on its findings.

30

     (k) License required. No person or entity shall engage in activities described in this section

31

without a compassion center license issued by the department of business regulation.

32

     21-28.6-17. Revenue.

33

     (a) Effective July 1, 2016, except for the one hundred twenty-five thousand dollar

34

($125,000) fee paid by the hybrid cannabis retailers pursuant to § 21-28.11-10, all fees collected

 

LC003594 - Page 87 of 115

1

by the departments of health and business regulation from applicants, registered patients, primary

2

caregivers, authorized purchasers, licensed medical marijuana cultivators, cooperative cultivations,

3

compassion centers, other licensees licensed pursuant to this chapter, and compassion-center and

4

other registry identification cardholders shall be placed in restricted-receipt accounts to support the

5

state's medical marijuana program, including but not limited to, payment of expenses incurred by

6

the departments of health and business regulation for the administration of the program. The

7

restricted-receipt account will be known as the "medical marijuana licensing account" and will be

8

housed within the budgets of the departments of business regulation and health until final issuance

9

of rules and regulations by the commission, at which time said account shall be housed within the

10

budget of the commission.

11

     (b) All revenues remaining in the restricted-receipt accounts after payments specified in

12

subsection (a) of this section shall first be paid to cover any existing deficit in the department of

13

health's restricted-receipt account or the department of business regulation's restricted-receipt

14

account. These transfers shall be made annually on the last business day of the fiscal year until final

15

issuance of rules and regulations of the commission, at which time the revenues subject to this

16

subsection shall be used to cover any existing deficit in the commission's budget.

17

     (c) All revenues remaining in the restricted-receipt accounts after payments specified in

18

subsections (a) and (b) shall be paid into the state's general fund. These payments shall be made

19

annually on the last business day of the fiscal year.

20

     SECTION 5. Chapter 21-28.6 of the General Laws entitled "The Edward O. Hawkins and

21

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

22

section:

23

     21-28.6-19. Transfer of powers.

24

     Six (6) months following final issuance of rules and regulations by the cannabis control

25

commission pursuant to the provisions of chapter 28.11 of title 21, including, but not limited to, §

26

21-28.11-18, all powers, and duties, rulemaking authority, hearings, enforcement actions and

27

administrative responsibilities and duties of the department of business regulation and department

28

of environmental management with respect to this chapter shall be transferred to the cannabis

29

control commission established pursuant to § 21-28.11-4.

30

     SECTION 6. Section 21-28.5-2 of the General Laws in Chapter 21-28.5 entitled "Sale of

31

Drug Paraphernalia" is hereby amended to read as follows:

32

     21-28.5-2. Manufacture or delivery of drug paraphernalia -- Penalty.

33

     It is unlawful for any person to deliver, sell, possess with intent to deliver, or sell, or

34

manufacture with intent to deliver, or sell drug paraphernalia, knowing that it will be used to plant,

 

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1

propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare,

2

test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale, or introduce into the human

3

body a controlled substance in violation of chapter 28 of this title. A violation of this section shall

4

be punishable by a fine not exceeding five thousand dollars ($5,000) or imprisonment not exceeding

5

two (2) years, or both.

6

     Notwithstanding any other provision of the general laws, the sale, manufacture, or delivery

7

of drug paraphernalia to a person acting in accordance with chapter chapters 28.6 and 28.11 of this

8

title shall not be considered a violation of this chapter. Any person violating this section, who but

9

for his or her age at the time of the violation would be acting in accordance with chapter 28.11 of

10

this title, shall be punished by a fine of one hundred dollars ($100), forfeiture of any drug

11

paraphernalia, and shall be ordered to complete a drug awareness program pursuant to § 21-28.11-

12

27.2.

13

     SECTION 7. Chapter 12-1.3 of the General Laws entitled "Expungement of Criminal

14

Records" is hereby amended by adding thereto the following section:

15

     12-1.3-5. Expungement of marijuana records.

16

     (a) Any person with a prior misdemeanor or felony conviction for possession only of a

17

marijuana offense that has been decriminalized subsequent to the date of conviction, that requests

18

in writing in a manner specified by the chief justice, shall be entitled to have the criminal conviction

19

automatically expunged, notwithstanding the provisions of chapter 1.3 of title 12.

20

     (b) Records shall be expunged pursuant to procedures and a timeline to be determined by

21

the chief justice.

22

     (c) If the amount of marijuana is not stated in the record of conviction or any related record,

23

report or document then the court shall presume the amount to have been two ounces (2 oz.) or less.

24

     (d) Any person who has been incarcerated for misdemeanor or felony possession of

25

marijuana shall have all court costs waived with respect to expungement of his or her criminal

26

record under this section.

27

     (e) If the court determines a record is to be expunged in accordance with the provisions of

28

this section, it shall order all records and records of conviction or civil adjudication relating to the

29

conviction or civil adjudication expunged and all index and other references to it removed from

30

public inspection. Within a reasonable time the court shall send a copy of the order to the

31

department of the attorney general, the police department that originally brought the charge against

32

the person, and any other agency known by the petitioner to have possession of the records of

33

conviction or adjudication.

34

     (f) Eligible expungement of convictions and civil adjudications pursuant to this section

 

LC003594 - Page 89 of 115

1

shall be granted notwithstanding the existence of:

2

     (1) Prior arrests, convictions, or civil adjudications including convictions for crimes of

3

violence as defined by § 12-1.3-1;

4

     (2) Pending criminal proceedings; and

5

     (3) Outstanding court-imposed or court-related fees, fines, costs, assessments or charges.

6

Any outstanding fees, fines, costs, assessments or charges related to the eligible conviction or civil

7

adjudication shall be waived.

8

     (g) Nothing in this section shall be construed to restrict or modify a person's right to have

9

their records expunged, except as otherwise may be provided in this chapter, or diminish or

10

abrogate any rights or remedies otherwise available to the individual.

11

     (h) The existence of convictions in other counts within the same case that are not eligible

12

for expungement pursuant to this section or other applicable laws shall not prevent any conviction

13

otherwise eligible for expungement under this section from being expunged pursuant to this section.

14

In such circumstances, the court shall make clear in its order what counts are expunged and what

15

counts are not expunged and/or remain convictions. In such circumstances, notwithstanding

16

subsection (e) of this section, any expungement pursuant to this subsection shall not affect the

17

records related to any count or conviction in the same case that are not eligible for expungement.

18

     (i) Nothing in this section shall be construed to require the court or any other private or

19

public agency to reimburse any petitioner for fines, fees, and costs previously incurred, paid or

20

collected in association with the eligible conviction or civil adjudication.

21

     (j) Any conviction or civil adjudication ordered expunged pursuant to this section shall not

22

be considered as a prior conviction or civil adjudication when determining the sentence to be

23

imposed for any subsequent crime or civil violation.

24

     (k) In any application for employment, license, or other civil right or privilege, or any

25

appearance as a witness, a person whose conviction of a crime or civil adjudication has been

26

expunged pursuant to this chapter may state that he or she has never been convicted of the crime

27

or found to be a civil violator; provided, that, if the person is an applicant for a law enforcement

28

agency position, for admission to the bar of any court, an applicant for a teaching certificate, under

29

chapter 11 of title 16, a coaching certificate under § 16-11.1-1, or the operator or employee of an

30

early childhood education facility pursuant to chapter 48.1 of title 16, the person shall disclose the

31

fact of a conviction or civil adjudication.

32

     (l) Whenever the records of any conviction or civil adjudication of an individual have been

33

expunged under the provisions of this section, any custodian of the records of conviction or civil

34

adjudication relating to that crime or violation shall not disclose the existence of the records upon

 

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1

inquiry from any source unless the inquiry is that of the individual whose record was expunged that

2

of a bar admission, character and fitness, or disciplinary committee, board, or agency, or court

3

which is considering a bar admission, character and fitness, or disciplinary matter, or that of the

4

commissioner of elementary and secondary education, or that of any law enforcement agency when

5

the nature and character of the offense in which an individual is to be charged would be affected

6

by virtue of the person having been previously convicted or adjudicated of the same offense. The

7

custodian of any records which have been expunged pursuant to the provisions of this section shall

8

only release or allow access to those records for the purposes specified in this subsection or by

9

order of a court.

10

     SECTION 8. Section 28-7-3 of the General Laws in Chapter 28-7 entitled "Labor Relations

11

Act" is hereby amended to read as follows:

12

     28-7-3. Definitions.

13

     When used in this chapter:

14

     (1) "Board" means the labor relations board created by § 28-7-4.

15

     (2) "Company union" means any committee employee representation plan or association

16

of employees which exists for the purpose, in whole or in part, of dealing with employers

17

concerning grievances or terms and conditions of employment, which the employer has initiated or

18

created or whose initiation or creation he or she has suggested, participated in or in the formulation

19

of whose governing rules or policies or the conducting of whose management, operations, or

20

elections the employer participates in or supervises, or which the employer maintains, finances,

21

controls, dominates, or assists in maintaining or financing, whether by compensating any one for

22

services performed in its behalf or by donating free services, equipment, materials, office or

23

meeting space or anything else of value, or by any other means.

24

     (3)(i) "Employees" includes, but is not restricted to, any individual employed by a labor

25

organization; any individual whose employment has ceased as a consequence of, or in connection

26

with, any current labor dispute or because of any unfair labor practice, and who has not obtained

27

any other regular and substantially equivalent employment; and shall not be limited to the

28

employees of a particular employer, unless the chapter explicitly states otherwise;

29

     (ii) "Employees" does not include any individual employed by his or her parent or spouse

30

or in the domestic service of any person in his or her home, or any individuals employed only for

31

the duration of a labor dispute, or any individuals employed as farm laborers, provided that any

32

individual employed by an employer in an industry established or regulated pursuant to chapters

33

28.6 or 28.11 of title 21 shall be an employee within the meaning of this act and shall not be

34

considered a farm laborer.

 

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1

     (4) "Employer" includes any person acting on behalf of or in the interest of an employer,

2

directly or indirectly, with or without his or her knowledge, but a labor organization or any officer

3

or its agent shall only be considered an employer with respect to individuals employed by the

4

organization.

5

     (5) "Labor dispute" includes, but is not restricted to, any controversy between employers

6

and employees or their representatives as defined in this section concerning terms, tenure, or

7

conditions of employment or concerning the association or representation of persons in negotiating,

8

fixing, maintaining, changing, or seeking to negotiate, fix, maintain, or change terms or conditions

9

of employment, or concerning the violation of any of the rights granted or affirmed by this chapter,

10

regardless of whether the disputants stand in the proximate relation of employer and employee.

11

     (6) "Labor organization" means any organization which exists and is constituted for the

12

purpose, in whole or in part, of collective bargaining, or of dealing with employers concerning

13

grievances, terms or conditions of employment, or of other mutual aid or protection and which is

14

not a company union as defined in this section.

15

     (7) "Person" includes one or more individuals, partnerships, associations, corporations,

16

legal representatives, trustees, trustees in bankruptcy, or receivers.

17

     (8) "Policies of this chapter" means the policies set forth in § 28-7-2.

18

     (9) "Representatives" includes a labor organization or an individual whether or not

19

employed by the employer of those whom he or she represents.

20

     (10) "Unfair labor practice" means only those unfair labor practices listed in §§ 28-7-13

21

and 28-7-13.1.

22

     SECTION 9. Section 21-28-4.01 of the General Laws in Chapter 21-28 entitled "Uniform

23

Controlled Substances Act" is hereby amended to read as follows:

24

     21-28-4.01. Prohibited acts A -- Penalties. [As amended by P.L. 2021, ch. 286, § 2 and

25

P.L. 2021, ch. 287, § 2.]

26

     (a)(1) Except as authorized by this chapter and chapters 28.6 and 28.11 of title 21, it shall

27

be unlawful for any person to manufacture, deliver, or possess with intent to manufacture or deliver

28

a controlled substance.

29

     (2) Any person who is not a drug-addicted person, as defined in § 21-28-1.02, who violates

30

this subsection with respect to a controlled substance classified in schedule I or II, except the

31

substance classified as marijuana, is guilty of a crime and, upon conviction, may be imprisoned to

32

a term up to life or fined not more than five hundred thousand dollars ($500,000) nor less than ten

33

thousand dollars ($10,000), or both.

34

     (3) Where the deliverance as prohibited in this subsection shall be the proximate cause of

 

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1

death to the person to whom the controlled substance is delivered, it shall not be a defense that the

2

person delivering the substance was, at the time of delivery, a drug-addicted person as defined in §

3

21-28-1.02.

4

     (4) Any person, except as provided for in subsection (a)(2), who violates this subsection

5

with respect to:

6

     (i) A controlled substance, classified in schedule I or II, is guilty of a crime and, upon

7

conviction, may be imprisoned for not more than thirty (30) years, or fined not more than one

8

hundred thousand dollars ($100,000) nor less than three thousand dollars ($3,000), or both;

9

     (ii) A controlled substance, classified in schedule III or IV, is guilty of a crime and, upon

10

conviction, may be imprisoned for not more than twenty (20) years, or fined not more than forty

11

thousand dollars ($40,000), or both; provided, with respect to a controlled substance classified in

12

schedule III(d), upon conviction may be imprisoned for not more than five (5) years, or fined not

13

more than twenty thousand dollars ($20,000), or both.

14

     (iii) A controlled substance, classified in schedule V, is guilty of a crime and, upon

15

conviction, may be imprisoned for not more than one year, or fined not more than ten thousand

16

dollars ($10,000), or both.

17

     (b)(1) Except as authorized by this chapter, it is unlawful for any person to create, deliver,

18

or possess with intent to deliver, a counterfeit substance.

19

     (2) Any person who violates this subsection with respect to:

20

     (i) A counterfeit substance, classified in schedule I or II, is guilty of a crime and, upon

21

conviction, may be imprisoned for not more than thirty (30) years, or fined not more than one

22

hundred thousand dollars ($100,000), or both;

23

     (ii) A counterfeit substance, classified in schedule III or IV, is guilty of a crime and, upon

24

conviction, may be imprisoned for not more than twenty (20) years, or fined not more than forty

25

thousand dollars ($40,000), or both; provided, with respect to a controlled substance classified in

26

schedule III(d), upon conviction may be imprisoned for not more than five (5) years, or fined not

27

more than twenty thousand dollars ($20,000), or both.

28

     (iii) A counterfeit substance, classified in schedule V, is guilty of a crime and, upon

29

conviction, may be imprisoned for not more than one year, or fined not more than ten thousand

30

dollars ($10,000), or both.

31

     (c)(1) It shall be unlawful for any person knowingly or intentionally to possess a controlled

32

substance, unless the substance was obtained directly from, or pursuant to, a valid prescription or

33

order of a practitioner while acting in the course of his or her professional practice, or except as

34

otherwise authorized by this chapter or chapters 28.6 and 28.11 of title 21.

 

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1

     (2) Any person who violates this subsection with respect to:

2

     (i) Except as otherwise provided in §§ 21-28-4.01.1 and 21-28-4.01.2, ten grams (10 g.) or

3

less of a mixture or substance containing a detectable amount of a controlled substance classified

4

in schedules I, II, III, IV, and V, except buprenorphine and the substance classified as marijuana,

5

is guilty of a misdemeanor and, upon conviction, may be imprisoned for not more than two (2)

6

years, or fined not more than five hundred dollars ($500) or both.

7

     (ii) Except as otherwise provided in §§ 21-28-4.01.1 and 21-28-4.01.2, more than ten grams

8

(10 g.), but less than one ounce (1 oz.) of a mixture or substance containing a detectable amount of

9

a controlled substance classified in schedules I, II and III, IV, and V, except buprenorphine and the

10

substance classified as marijuana, is guilty of a felony and, upon conviction, may be imprisoned

11

for not more than three (3) years, or fined not more than five thousand dollars ($5,000), or both.

12

     (iii) More than one ounce (1 oz.) two ounces (2 oz.) of a controlled substance classified in

13

schedule I as marijuana is guilty of a misdemeanor unless possessed inside one's own primary

14

residence, except for those persons subject to (a)(1), and, upon conviction, may be imprisoned for

15

not more than one year, or fined not more than five hundred dollars ($500), or both. Exclusive of

16

live marijuana plants, more than ten ounces (10 oz.) of a controlled substance classified in schedule

17

I as marijuana, when possessed within one's personal residence is guilty of a misdemeanor, except

18

for those persons subject to (a)(1), and, upon conviction, may be imprisoned for not more than one

19

year, or fined not less than two hundred dollars ($200) nor more than five hundred dollars ($500),

20

or both.

21

     Possession of live marijuana plants in excess of the number authorized pursuant to § 21-

22

28.11-22 is guilty of a misdemeanor, except for those persons subject to (a)(1) and, upon

23

conviction, may be imprisoned for not more than one year, or fined not less than two hundred

24

dollars ($200) nor more than five hundred dollars ($500), or both

25

     (iv) Notwithstanding any public, special, or general law to the contrary, the possession of

26

more than one ounce (1 oz.) or less but not more than two ounces (2 oz.) of marijuana by a person

27

who is eighteen (18) years of age or older, and who is not exempted from penalties pursuant to

28

chapter 28.6 of this title, shall constitute a civil offense, rendering the offender liable to a civil

29

penalty in the amount of one hundred fifty dollars ($150) and forfeiture of the marijuana, but not

30

to any other form of criminal or civil punishment or disqualification. Notwithstanding any public,

31

special, or general law to the contrary, this civil penalty of one hundred fifty dollars ($150) and

32

forfeiture of the marijuana shall apply if the offense is the first (1st) or second (2nd) violation within

33

the previous eighteen (18) months.

34

     (v) Notwithstanding any public, special, or general law to the contrary, possession of one

 

LC003594 - Page 94 of 115

1

ounce (1 oz.) or less of marijuana by a person who is seventeen (17) years of age or older and under

2

the age of eighteen (18) years, and who is not exempted from penalties pursuant to chapter 28.6 of

3

this title, shall constitute a civil offense, rendering the offender liable to a civil penalty in the amount

4

of one hundred fifty dollars ($150) and forfeiture of the marijuana; provided the minor offender

5

completes an approved, drug-awareness program and community service as determined by the

6

court. If the person seventeen (17) years of age or older and under the age of eighteen (18) years

7

fails to complete an approved, drug-awareness program and community service within one year of

8

the disposition, the penalty shall be a three hundred dollar ($300) civil fine and forfeiture of the

9

marijuana, except that if no drug-awareness program or community service is available, the penalty

10

shall be a fine of one hundred fifty dollars ($150) and forfeiture of the marijuana. The parents or

11

legal guardian of any offender seventeen (17) years of age or older and under the age of eighteen

12

(18) shall be notified of the offense and the availability of a drug-awareness and community-service

13

program. The drug-awareness program must be approved by the court, but shall, at a minimum,

14

provide four (4) hours of instruction or group discussion and ten (10) hours of community service.

15

Notwithstanding any other public, special, or general law to the contrary, this civil penalty shall

16

apply if the offense is the first or second violation within the previous eighteen (18) months.

17

     (vi) Notwithstanding any public, special, or general law to the contrary, a person not

18

exempted from penalties pursuant to chapter 28.6 of this title found in possession of one ounce (1

19

oz.) or less of marijuana is guilty of a misdemeanor and, upon conviction, may be imprisoned for

20

not more than thirty (30) days, or fined not less than two hundred dollars ($200) nor more than five

21

hundred dollars ($500), or both, if that person has been previously adjudicated on a violation for

22

possession of less than one ounce (1 oz.) of marijuana under (c)(2)(iv) or (c)(2)(v) two (2) times in

23

the eighteen (18) months prior to the third (3rd) offense.

24

     (vii) Any unpaid civil fine issued under (c)(2)(iv) or (c)(2)(v) shall double to three hundred

25

dollars ($300) if not paid within thirty (30) days of the disposition. The civil fine shall double again

26

to six hundred dollars ($600) if it has not been paid within ninety (90) days.

27

     (viii) No person may be arrested for a violation of (c)(2)(iv) or (c)(2)(v) of this subsection

28

except as provided in this subparagraph. Any person in possession of an identification card, license,

29

or other form of identification issued by the state or any state, city, or town, or any college or

30

university, who fails to produce the same upon request of a police officer who informs the person

31

that he or she has been found in possession of what appears to the officer to be more than one ounce

32

(1 oz.) of marijuana, or any person without any such forms of identification who fails or refuses to

33

truthfully provide his or her name, address, and date of birth to a police officer who has informed

34

such person that the officer intends to provide such individual with a citation for possession of more

 

LC003594 - Page 95 of 115

1

than one ounce (1 oz.) but less than two ounces (2 oz.) of marijuana, may be arrested.

2

     (ix) No violation of (c)(2)(iv) or (c)(2)(v) of this subsection shall be considered a violation

3

of parole or probation.

4

     (x) Any records collected by any state agency, tribunal, or the family court that include

5

personally identifiable information about violations of (c)(2)(iv) or (c)(2)(v) shall not be open to

6

public inspection in accordance with § 8-8.2-21.

7

     (3) Jurisdiction.

8

     (i) Any and all adjudications of violations of (c)(2)(i) shall be within the original

9

jurisdiction of the Rhode Island superior court. The department of attorney general shall prosecute

10

any and all violations of (c)(2)(i).

11

     (ii) Any and all violations of (c)(2)(iv) and (c)(2)(v) shall be the exclusive jurisdiction of

12

the Rhode Island traffic tribunal. All money associated with the civil fine issued under (c)(2)(iv) or

13

(c)(2)(v) shall be payable to the Rhode Island traffic tribunal. Fifty percent (50%) of all fines

14

collected by the Rhode Island traffic tribunal from civil penalties issued pursuant to (c)(2)(iv) or

15

(c)(2)(v) shall be expended on drug-awareness and treatment programs for youth.

16

     (4) Additionally, every person convicted or who pleads nolo contendere under (c)(2)(i) or

17

(c)(2)(ii) or convicted or who pleads nolo contendere a second or subsequent time under (c)(2)(ii)

18

(c)(2)(iii), who is not sentenced to a term of imprisonment to serve for the offense, shall be required

19

to:

20

     (i) Perform up to one hundred (100) hours of community service;

21

     (ii) Attend and complete a drug-counseling and education program, as prescribed, by the

22

director of the department of behavioral healthcare, developmental disabilities and hospitals

23

(BHDDH) similar to that in § 21-28.11-27.2, and pay the sum of four hundred dollars ($400) to

24

help defray the costs of this program which shall be deposited as general revenues. Failure to attend

25

may result, after hearing by the court, in jail sentence up to one year;

26

     (iii) The court shall not suspend any part or all of the imposition of the fee required by this

27

subsection, unless the court finds an inability to pay;

28

     (iv) If the offense involves the use of any automobile to transport the substance or the

29

substance is found within an automobile, then a person convicted or who pleads nolo contendere

30

under (c)(2)(i), (c)(2)(ii) or (c)(2)(iii) shall be subject to a loss of license for a period of six (6)

31

months for a first offense and one year for each offense after.

32

     (5) All fees assessed and collected pursuant to (c)(2)(iii) shall be deposited as general

33

revenues and shall be collected from the person convicted or who pleads nolo contendere before

34

any other fines authorized by this chapter.

 

LC003594 - Page 96 of 115

1

     (d) It shall be unlawful for any person to manufacture, distribute, or possess with intent to

2

manufacture or distribute, an imitation controlled substance. Any person who violates this

3

subsection is guilty of a crime and, upon conviction, shall be subject to the same term of

4

imprisonment and/or fine as provided by this chapter for the manufacture or distribution of the

5

controlled substance that the particular imitation controlled substance forming the basis of the

6

prosecution was designed to resemble and/or represented to be; but in no case shall the

7

imprisonment be for more than five (5) years nor the fine for more than twenty thousand dollars

8

($20,000).

9

     (e) It shall be unlawful for a practitioner to prescribe, order, distribute, supply, or sell an

10

anabolic steroid or human growth hormone for: (1) Enhancing performance in an exercise, sport,

11

or game, or (2) Hormonal manipulation intended to increase muscle mass, strength, or weight

12

without a medical necessity. Any person who violates this subsection is guilty of a misdemeanor

13

and, upon conviction, may be imprisoned for not more than six (6) months or a fine of not more

14

than one thousand dollars ($1,000), or both.

15

     (f) It is unlawful for any person to knowingly or intentionally possess, manufacture,

16

distribute, or possess with intent to manufacture or distribute, any extract, compound, salt

17

derivative, or mixture of salvia divinorum or datura stramonium or its extracts unless the person is

18

exempt pursuant to the provisions of § 21-28-3.30. Notwithstanding any laws to the contrary, any

19

person who violates this section is guilty of a misdemeanor and, upon conviction, may be

20

imprisoned for not more than one year, or fined not more than one thousand dollars ($1,000), or

21

both. The provisions of this section shall not apply to licensed physicians, pharmacists, and

22

accredited hospitals and teaching facilities engaged in the research or study of salvia divinorum or

23

datura stramonium and shall not apply to any person participating in clinical trials involving the

24

use of salvia divinorum or datura stramonium.

25

     SECTION 10. Section 14-1-3 of the General Laws in Chapter 14-1 entitled "Proceedings

26

in Family Court" is hereby amended to read as follows:

27

     14-1-3. Definitions.

28

     The following words and phrases when used in this chapter shall, unless the context

29

otherwise requires, be construed as follows:

30

     (1) "Adult" means a person eighteen (18) years of age or older.

31

     (2) "Appropriate person," as used in §§ 14-1-10 and 14-1-11, except in matters relating to

32

adoptions and child marriages, means and includes:

33

     (i) Any police official of this state, or of any city or town within this state;

34

     (ii) Any duly qualified prosecuting officer of this state, or of any city or town within this

 

LC003594 - Page 97 of 115

1

state;

2

     (iii) Any director of public welfare of any city or town within this state, or his or her duly

3

authorized subordinate;

4

     (iv) Any truant officer or other school official of any city or town within this state;

5

     (v) Any duly authorized representative of any public or duly licensed private agency or

6

institution established for purposes similar to those specified in § 8-10-2 or 14-1-2; or

7

     (vi) Any maternal or paternal grandparent, who alleges that the surviving parent, in those

8

cases in which one parent is deceased, is an unfit and improper person to have custody of any child

9

or children.

10

     (3) "Child" means a person under eighteen (18) years of age.

11

     (4) "The court" means the family court of the state of Rhode Island.

12

     (5) "Delinquent," when applied to a child, means and includes any child who has committed

13

any offense that, if committed by an adult, would constitute a felony, or who has on more than one

14

occasion violated any of the other laws of the state or of the United States or any of the ordinances

15

of cities and towns, other than ordinances relating to the operation of motor vehicles.

16

     (6) "Dependent" means any child who requires the protection and assistance of the court

17

when his or her physical or mental health or welfare is harmed, or threatened with harm, due to the

18

inability of the parent or guardian, through no fault of the parent or guardian, to provide the child

19

with a minimum degree of care or proper supervision because of:

20

     (i) The death or illness of a parent; or

21

     (ii) The special medical, educational, or social-service needs of the child which the parent

22

is unable to provide.

23

     (7) "Justice" means a justice of the family court.

24

     (8) "Neglect" means a child who requires the protection and assistance of the court when

25

his or her physical or mental health or welfare is harmed, or threatened with harm, when the parents

26

or guardian:

27

     (i) Fails to supply the child with adequate food, clothing, shelter, or medical care, though

28

financially able to do so or offered financial or other reasonable means to do so;

29

     (ii) Fails to provide the child proper education as required by law; or

30

     (iii) Abandons and/or deserts the child.

31

     (9) "Supervised independent living setting" means a supervised setting in which a young

32

adult is living independently, that meets any safety and/or licensing requirements established by

33

the department for this population, and is paired with a supervising agency or a supervising worker,

34

including, but not limited to, single or shared apartments or houses, host homes, relatives' and

 

LC003594 - Page 98 of 115

1

mentors' homes, college dormitories or other postsecondary educational or vocational housing. All

2

or part of the financial assistance that secures an independent supervised setting for a young adult

3

may be paid directly to the young adult if there is no provider or other child-placing intermediary,

4

or to a landlord, a college, or to a supervising agency, or to other third parties on behalf of the

5

young adult in the discretion of the department.

6

     (10) "Voluntary placement agreement for extension of care" means a written agreement

7

between the state agency and a young adult who meets the eligibility conditions specified in § 14-

8

1-6(c), acting as their own legal guardian that is binding on the parties to the agreement. At a

9

minimum, the agreement recognizes the voluntary nature of the agreement, the legal status of the

10

young adult and the rights and obligations of the young adult, as well as the services and supports

11

the agency agrees to provide during the time that the young adult consents to giving the department

12

legal responsibility for care and placement.

13

     (11) "Wayward," when applied to a child, means and includes any child:

14

     (i) Who has deserted his or her home without good or sufficient cause;

15

     (ii) Who habitually associates with dissolute, vicious, or immoral persons;

16

     (iii) Who is leading an immoral or vicious life;

17

     (iv) Who is habitually disobedient to the reasonable and lawful commands of his or her

18

parent or parents, guardian, or other lawful custodian;

19

     (v) Who, being required by chapter 19 of title 16 to attend school, willfully and habitually

20

absents himself or herself from school or habitually violates the rules and regulations of the school

21

when he or she attends;

22

     (vi) Who has, on any occasion, violated any of the laws of the state or of the United States

23

or any of the ordinances of cities and towns, other than ordinances relating to the operation of motor

24

vehicles; or

25

     (vii) Any child under seventeen (17) years of age who is in possession of one ounce (1 oz.)

26

or less of marijuana, as defined in § 21-28-1.02 violates § 21-28.11-27, and who is not exempted

27

from the penalties pursuant to chapter 28.6 of title 21.

28

     (12) "Young adult" means an individual who has attained the age of eighteen (18) years

29

but has not reached the age of twenty-one (21) years and was in the legal custody of the department

30

on their eighteenth birthday pursuant to an abuse, neglect or dependency petition; or was a former

31

foster child who was adopted or placed in a guardianship after attaining age sixteen (16).

32

     (13) The singular shall be construed to include the plural, the plural the singular, and the

33

masculine the feminine, when consistent with the intent of this chapter.

34

     (14) For the purposes of this chapter, "electronic surveillance and monitoring devices"

 

LC003594 - Page 99 of 115

1

means any "radio frequency identification device (RFID)" or "global positioning device" that is

2

either tethered to a person or is intended to be kept with a person and is used for the purposes of

3

tracking the whereabouts of that person within the community.

4

     SECTION 11. Sections 31-27-2, 31-27-2.1 and 31-27-2.9 of the General Laws in Chapter

5

31-27 entitled “Motor Vehicles Offenses” are hereby amended to read as follows:

6

     31-27-2. Driving under influence of liquor or drugs.

7

     (a) Whoever drives or otherwise operates any vehicle in the state while under the influence

8

of any intoxicating liquor, drugs, toluene, or any controlled substance as defined in chapter 28 of

9

title 21, or any combination of these, shall be guilty of a misdemeanor, except as provided in

10

subsection (d)(3), and shall be punished as provided in subsection (d) of this section.

11

     (b)(1) Any person charged under subsection (a), whose blood alcohol concentration is eight

12

one-hundredths of one percent (.08%) or more by weight, as shown by a chemical analysis of a

13

blood, breath, or urine sample, shall be guilty of violating subsection (a). This provision shall not

14

preclude a conviction based on other admissible evidence, including the testimony of a drug

15

recognition expert or evaluator, certified pursuant to training approved by the Rhode Island

16

department of transportation office on highway safety. Proof of guilt under this section may also

17

be based on evidence that the person charged was under the influence of intoxicating liquor, drugs,

18

toluene, or any controlled substance defined in chapter 28 of title 21, or any combination of these,

19

to a degree that rendered the person incapable of safely operating a vehicle. The fact that any person

20

charged with violating this section is, or has been, legally entitled to use alcohol or a drug shall not

21

constitute a defense against any charge of violating this section.

22

     (2) [Deleted by P.L. 2021, ch. 170, § 1 and P.L. 2021, ch. 171, § 1.]

23

     (c) In any criminal prosecution for a violation of subsection (a), evidence as to the amount

24

of intoxicating liquor, toluene, or any controlled substance as defined in chapter 28 of title 21, or

25

any combination of these, in the defendant's blood at the time alleged as shown by a chemical

26

analysis of the defendant's breath, blood, saliva or urine or other bodily substance, shall be

27

admissible and competent, provided that evidence is presented that the following conditions have

28

been complied with:

29

     (1) The defendant has consented to the taking of the test upon which the analysis is made.

30

Evidence that the defendant had refused to submit to the test shall not be admissible unless the

31

defendant elects to testify.

32

     (2) A true copy of the report of the test result was hand delivered at the location of the test

33

or mailed within seventy-two (72) hours of the taking of the test to the person submitting to a breath

34

test.

 

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1

     (3) Any person submitting to a chemical test of blood, urine, saliva or other body fluids

2

shall have a true copy of the report of the test result mailed to him or her within thirty (30) days

3

following the taking of the test.

4

     (4) The test was performed according to methods and with equipment approved by the

5

director of the department of health of the state of Rhode Island and by an authorized individual.

6

     (5) Equipment used for the conduct of the tests by means of breath analysis had been tested

7

for accuracy within thirty (30) days preceding the test by personnel qualified as hereinbefore

8

provided, and breathalyzer operators shall be qualified and certified by the department of health

9

within three hundred sixty-five (365) days of the test.

10

     (6) The person arrested and charged with operating a motor vehicle while under the

11

influence of intoxicating liquor, toluene, or any controlled substance as defined in chapter 28 of

12

title 21 or any combination of these in violation of subsection (a), was afforded the opportunity to

13

have an additional chemical test. The officer arresting or so charging the person shall have informed

14

the person of this right and afforded him or her a reasonable opportunity to exercise this right, and

15

a notation to this effect is made in the official records of the case in the police department. Refusal

16

to permit an additional chemical test shall render incompetent and inadmissible in evidence the

17

original report.

18

     (d)(1) (i) Every person found to have violated subsection (b)(1) shall be sentenced as

19

follows: for a first violation whose blood alcohol concentration is eight one-hundredths of one

20

percent (.08%), but less than one-tenth of one percent (.1%), by weight, or who has a blood presence

21

of any scheduled controlled substance as defined in chapter 28 of title 21, shall be subject to a fine

22

of not less than one hundred dollars ($100), nor more than three hundred dollars ($300); shall be

23

required to perform ten (10) to sixty (60) hours of public community restitution, and/or shall be

24

imprisoned for up to one year. The sentence may be served in any unit of the adult correctional

25

institutions in the discretion of the sentencing judge and/or shall be required to attend a special

26

course on driving while intoxicated or under the influence of a controlled substance; provided,

27

however, that the court may permit a servicemember or veteran to complete any court-approved

28

counseling program administered or approved by the Veterans' Administration, and his or her

29

driver's license shall be suspended for thirty (30) days up to one hundred eighty (180) days. The

30

sentencing judge or magistrate may prohibit that person from operating a motor vehicle, pursuant

31

to subsection (d)(9) or (d)(10) of this section, that is not equipped with an ignition interlock system

32

and/or blood and urine testing as provided in § 31-27-2.8.

33

     (ii) Every person convicted of a first violation whose blood alcohol concentration is one-

34

tenth of one percent (.1%) by weight or above, but less than fifteen hundredths of one percent

 

LC003594 - Page 101 of 115

1

(.15%), or whose blood alcohol concentration is unknown, shall be subject to a fine of not less than

2

one hundred ($100) dollars, nor more than four hundred dollars ($400), and shall be required to

3

perform ten (10) to sixty (60) hours of public community restitution and/or shall be imprisoned for

4

up to one year. The sentence may be served in any unit of the adult correctional institutions in the

5

discretion of the sentencing judge. The person's driving license shall be suspended for a period of

6

three (3) months to twelve (12) months. The sentencing judge shall require attendance at a special

7

course on driving while intoxicated or under the influence of a controlled substance and/or

8

alcoholic or drug treatment for the individual; provided, however, that the court may permit a

9

servicemember or veteran to complete any court-approved counseling program administered or

10

approved by the Veterans' Administration. The sentencing judge or magistrate may prohibit that

11

person from operating a motor vehicle that is not equipped with an ignition interlock system as

12

provided in § 31-27-2.8.

13

     (iii) Every person convicted of a first offense whose blood alcohol concentration is fifteen

14

hundredths of one percent (.15%) or above, or who is under the influence of a drug, toluene, or any

15

controlled substance as defined in subsection (b)(1), shall be subject to a fine of five hundred dollars

16

($500) and shall be required to perform twenty (20) to sixty (60) hours of public community

17

restitution and/or shall be imprisoned for up to one year. The sentence may be served in any unit

18

of the adult correctional institutions in the discretion of the sentencing judge. The person's driving

19

license shall be suspended for a period of three (3) months to eighteen (18) months. The sentencing

20

judge shall require attendance at a special course on driving while intoxicated or under the influence

21

of a controlled substance and/or alcohol or drug treatment for the individual; provided, however,

22

that the court may permit a servicemember or veteran to complete any court-approved counseling

23

program administered or approved by the Veterans' Administration. The sentencing judge or

24

magistrate shall prohibit that person from operating a motor vehicle, pursuant to subsection (d)(9)

25

or (d)(10) of this section, that is not equipped with an ignition interlock system and/or blood and

26

urine testing as provided in § 31-27-2.8.

27

     (2)(i) Every person convicted of a second violation within a five-year (5) period with a

28

blood alcohol concentration of eight one-hundredths of one percent (.08%) or above, but less than

29

fifteen hundredths of one percent (.15%), or whose blood alcohol concentration is unknown, or

30

who has a blood presence of any controlled substance as defined in chapter 28 of title 21, and every

31

person convicted of a second violation within a five-year (5) period, regardless of whether the prior

32

violation and subsequent conviction was a violation and subsequent conviction under this statute

33

or under the driving under the influence of liquor or drugs statute of any other state, shall be subject

34

to a mandatory fine of four hundred dollars ($400). The person's driving license shall be suspended

 

LC003594 - Page 102 of 115

1

for a period of one year to two (2) years, and the individual shall be sentenced to not less than ten

2

(10) days, nor more than one year, in jail. The sentence may be served in any unit of the adult

3

correctional institutions in the discretion of the sentencing judge; however, not less than forty-eight

4

(48) hours of imprisonment shall be served consecutively. The sentencing judge shall require

5

alcohol or drug treatment for the individual; provided, however, that the court may permit a

6

servicemember or veteran to complete any court-approved counseling program administered or

7

approved by the Veterans' Administration and shall prohibit that person from operating a motor

8

vehicle, pursuant to subsection (d)(9) or (d)(10) of this section, that is not equipped with an ignition

9

interlock system and/or blood and urine testing as provided in § 31-27-2.8.

10

     (ii) Every person convicted of a second violation within a five-year (5) period whose blood

11

alcohol concentration is fifteen hundredths of one percent (.15%) or above, by weight as shown by

12

a chemical analysis of a blood, breath, or urine sample, or who is under the influence of a drug,

13

toluene, or any controlled substance as defined in subsection (b)(1), shall be subject to mandatory

14

imprisonment of not less than six (6) months, nor more than one year; a mandatory fine of not less

15

than one thousand dollars ($1,000); and a mandatory license suspension for a period of two (2)

16

years from the date of completion of the sentence imposed under this subsection. The sentencing

17

judge shall require alcohol or drug treatment for the individual; provided, however, that the court

18

may permit a servicemember or veteran to complete any court approved counseling program

19

administered or approved by the Veterans' Administration. The sentencing judge or magistrate shall

20

prohibit that person from operating a motor vehicle, pursuant to subsection (d)(9) or (d)(10) of this

21

section, that is not equipped with an ignition interlock system and/or blood and urine testing as

22

provided in § 31-27-2.8.

23

     (3)(i) Every person convicted of a third or subsequent violation within a five-year (5)

24

period with a blood alcohol concentration of eight one-hundredths of one percent (.08%) or above,

25

but less than fifteen hundredths of one percent (.15%), or whose blood alcohol concentration is

26

unknown or who has a blood presence of any scheduled controlled substance as defined in chapter

27

28 of title 21, regardless of whether any prior violation and subsequent conviction was a violation

28

and subsequent conviction under this statute or under the driving under the influence of liquor or

29

drugs statute of any other state, shall be guilty of a felony and be subject to a mandatory fine of

30

four hundred ($400) dollars. The person's driving license shall be suspended for a period of two (2)

31

years to three (3) years, and the individual shall be sentenced to not less than one year and not more

32

than three (3) years in jail. The sentence may be served in any unit of the adult correctional

33

institutions in the discretion of the sentencing judge; however, not less than forty-eight (48) hours

34

of imprisonment shall be served consecutively. The sentencing judge shall require alcohol or drug

 

LC003594 - Page 103 of 115

1

treatment for the individual; provided, however, that the court may permit a servicemember or

2

veteran to complete any court-approved counseling program administered or approved by the

3

Veterans' Administration, and shall prohibit that person from operating a motor vehicle, pursuant

4

to subsection (d)(9) or (d)(10) of this section, that is not equipped with an ignition interlock system

5

and/or blood and urine testing as provided in § 31-27-2.8.

6

     (ii) Every person convicted of a third or subsequent violation within a ten-year (10) period

7

whose blood alcohol concentration is fifteen hundredths of one percent (.15%) above by weight as

8

shown by a chemical analysis of a blood, breath, or urine sample, or who is under the influence of

9

a drug, toluene, or any controlled substance as defined in subsection (b)(1), shall be subject to

10

mandatory imprisonment of not less than three (3) years, nor more than five (5) years; a mandatory

11

fine of not less than one thousand dollars ($1,000), nor more than five thousand dollars ($5,000);

12

and a mandatory license suspension for a period of three (3) years from the date of completion of

13

the sentence imposed under this subsection. The sentencing judge shall require alcohol or drug

14

treatment for the individual. The sentencing judge or magistrate shall prohibit that person from

15

operating a motor vehicle, pursuant to subsection (d)(9) or (d)(10) of this section, that is not

16

equipped with an ignition interlock system and/or blood and urine testing as provided in § 31-27-

17

2.8.

18

     (iii) In addition to the foregoing penalties, every person convicted of a third or subsequent

19

violation within a five-year (5) period, regardless of whether any prior violation and subsequent

20

conviction was a violation and subsequent conviction under this statute or under the driving under

21

the influence of liquor or drugs statute of any other state, shall be subject, in the discretion of the

22

sentencing judge, to having the vehicle owned and operated by the violator seized and sold by the

23

state of Rhode Island, with all funds obtained by the sale to be transferred to the general fund.

24

     (4) Whoever drives or otherwise operates any vehicle in the state while under the influence

25

of any intoxicating liquor, drugs, toluene, or any controlled substance as defined in chapter 28 of

26

title 21, or any combination of these, when his or her license to operate is suspended, revoked, or

27

cancelled for operating under the influence of a narcotic drug or intoxicating liquor, shall be guilty

28

of a felony punishable by imprisonment for not more than three (3) years and by a fine of not more

29

than three thousand dollars ($3,000). The court shall require alcohol and/or drug treatment for the

30

individual; provided, the penalties provided for in this subsection (d)(4) shall not apply to an

31

individual who has surrendered his or her license and served the court-ordered period of suspension,

32

but who, for any reason, has not had his or her license reinstated after the period of suspension,

33

revocation, or suspension has expired; provided, further, the individual shall be subject to the

34

provisions of subsection (d)(2)(i), (d)(2)(ii), (d)(3)(i), (d)(3)(ii), or (d)(3)(iii) regarding subsequent

 

LC003594 - Page 104 of 115

1

offenses, and any other applicable provision of this section.

2

     (5)(i) For purposes of determining the period of license suspension, a prior violation shall

3

constitute any charge brought and sustained under the provisions of this section or § 31-27-2.1.

4

     (ii) Any person over the age of eighteen (18) who is convicted under this section for

5

operating a motor vehicle while under the influence of alcohol, other drugs, or a combination of

6

these, while a child under the age of thirteen (13) years was present as a passenger in the motor

7

vehicle when the offense was committed shall be subject to immediate license suspension pending

8

prosecution. Any person convicted of violating this section shall be guilty of a misdemeanor for a

9

first offense and may be sentenced to a term of imprisonment of not more than one year and a fine

10

not to exceed one thousand dollars ($1,000). Any person convicted of a second or subsequent

11

offense shall be guilty of a felony offense and may be sentenced to a term of imprisonment of not

12

more than five (5) years and a fine not to exceed five thousand dollars ($5,000). The sentencing

13

judge shall also order a license suspension of up to two (2) years, require attendance at a special

14

course on driving while intoxicated or under the influence of a controlled substance, and alcohol

15

or drug education and/or treatment. The individual may also be required to pay a highway

16

assessment fee of no more than five hundred dollars ($500) and the assessment shall be deposited

17

in the general fund.

18

     (6)(i) Any person convicted of a violation under this section shall pay a highway

19

assessment fine of five hundred dollars ($500) that shall be deposited into the general fund. The

20

assessment provided for by this subsection shall be collected from a violator before any other fines

21

authorized by this section.

22

     (ii) Any person convicted of a violation under this section shall be assessed a fee of eighty-

23

six dollars ($86).

24

     (7)(i) If the person convicted of violating this section is under the age of eighteen (18)

25

years, for the first violation he or she shall be required to perform ten (10) to sixty (60) hours of

26

public community restitution and the juvenile's driving license shall be suspended for a period of

27

six (6) months, and may be suspended for a period up to eighteen (18) months. The sentencing

28

judge shall also require attendance at a special course on driving while intoxicated or under the

29

influence of a controlled substance and alcohol or drug education and/or treatment for the juvenile.

30

The juvenile may also be required to pay a highway assessment fine of no more than five hundred

31

dollars ($500) and the assessment imposed shall be deposited into the general fund.

32

     (ii) If the person convicted of violating this section is under the age of eighteen (18) years,

33

for a second or subsequent violation regardless of whether any prior violation and subsequent

34

conviction was a violation and subsequent conviction under this statute or under the driving under

 

LC003594 - Page 105 of 115

1

the influence of liquor or drugs statute of any other state, he or she shall be subject to a mandatory

2

suspension of his or her driving license until such time as he or she is twenty-one (21) years of age

3

and may, in the discretion of the sentencing judge, also be sentenced to the Rhode Island training

4

school for a period of not more than one year and/or a fine of not more than five hundred dollars

5

($500).

6

     (8) Any person convicted of a violation under this section may undergo a clinical

7

assessment at the community college of Rhode Island's center for workforce and community

8

education. Should this clinical assessment determine problems of alcohol, drug abuse, or

9

psychological problems associated with alcoholic or drug abuse, this person shall be referred to an

10

appropriate facility, licensed or approved by the department of behavioral healthcare,

11

developmental disabilities and hospitals, for treatment placement, case management, and

12

monitoring. In the case of a servicemember or veteran, the court may order that the person be

13

evaluated through the Veterans' Administration. Should the clinical assessment determine problems

14

of alcohol, drug abuse, or psychological problems associated with alcohol or drug abuse, the person

15

may have their treatment, case management, and monitoring administered or approved by the

16

Veterans' Administration.

17

     (9) Notwithstanding any other sentencing and disposition provisions contained in this

18

chapter, if the judge or magistrate makes a finding beyond a reasonable doubt that a motorist was

19

operating a vehicle in the state while under the influence of drugs, toluene, or any controlled

20

substance as evidenced by the presence of controlled substances on or about the person or vehicle,

21

or other reliable indicia or articulable conditions thereof, but not intoxicating liquor based on a

22

preliminary breath test, results from a breathalyzer that indicates no blood alcohol concentration,

23

or both, the judge or magistrate may exercise his or her discretion and eliminate the requirement of

24

an ignition interlock system; provided, that blood and/or urine testing is mandated as a condition

25

to operating a motor vehicle as provided in § 31-27-2.8.

26

     (10) Notwithstanding any other sentencing and disposition provisions contained in this

27

chapter, if the judge or magistrate makes a finding beyond a reasonable doubt that a motorist was

28

operating a vehicle in the state while under the influence of drugs, toluene, or any controlled

29

substance as evidenced by the presence of controlled substances on or about the person or vehicle,

30

or other reliable indicia or articulable conditions thereof and intoxicating liquor based on a

31

preliminary breath test, results from a breathalyzer that indicates blood alcohol concentration, or

32

both, the judge or magistrate may require an ignition interlock system in addition to blood and/or

33

urine testing as a condition to operating a motor vehicle as provided in § 31-27-2.8.

34

     (e) Percent by weight of alcohol in the blood shall be based upon milligrams of alcohol per

 

LC003594 - Page 106 of 115

1

one hundred cubic centimeters (100 cc) of blood.

2

     (f)(1) There is established an alcohol and drug safety unit within the division of motor

3

vehicles to administer an alcohol safety action program. The program shall provide for placement

4

and follow-up for persons who are required to pay the highway safety assessment. The alcohol and

5

drug safety action program will be administered in conjunction with alcohol and drug programs

6

licensed by the department of behavioral healthcare, developmental disabilities and hospitals.

7

     (2) Persons convicted under the provisions of this chapter shall be required to attend a

8

special course on driving while intoxicated or under the influence of a controlled substance, and/or

9

participate in an alcohol or drug treatment program, which course and programs must meet the

10

standards established by the Rhode Island department of behavioral healthcare, developmental

11

disabilities and hospitals; provided, however, that the court may permit a servicemember or veteran

12

to complete any court-approved counseling program administered or approved by the Veterans'

13

Administration. The course shall take into consideration any language barrier that may exist as to

14

any person ordered to attend, and shall provide for instruction reasonably calculated to

15

communicate the purposes of the course in accordance with the requirements of the subsection.

16

Any costs reasonably incurred in connection with the provision of this accommodation shall be

17

borne by the person being retrained. A copy of any violation under this section shall be forwarded

18

by the court to the alcohol and drug safety unit. In the event that persons convicted under the

19

provisions of this chapter fail to attend and complete the above course or treatment program, as

20

ordered by the judge, then the person may be brought before the court, and after a hearing as to

21

why the order of the court was not followed, may be sentenced to jail for a period not exceeding

22

one year.

23

     (3) The alcohol and drug safety action program within the division of motor vehicles shall

24

be funded by general revenue appropriations.

25

     (g) The director of the department of health is empowered to make and file with the

26

secretary of state regulations that prescribe the techniques and methods of chemical analysis of the

27

person's body fluids or breath and the qualifications and certification of individuals authorized to

28

administer this testing and analysis.

29

     (h) Jurisdiction for misdemeanor violations of this section shall be with the district court

30

for persons eighteen (18) years of age or older and to the family court for persons under the age of

31

eighteen (18) years. The courts shall have full authority to impose any sentence authorized and to

32

order the suspension of any license for violations of this section. Trials in superior court are not

33

required to be scheduled within thirty (30) days of the arraignment date.

34

     (i) No fines, suspensions, assessments, alcohol or drug treatment programs, course on

 

LC003594 - Page 107 of 115

1

driving while intoxicated or under the influence of a controlled substance, public community

2

restitution, or jail provided for under this section can be suspended.

3

     (j) An order to attend a special course on driving while intoxicated, that shall be

4

administered in cooperation with a college or university accredited by the state, shall include a

5

provision to pay a reasonable tuition for the course in an amount not less than twenty-five dollars

6

($25.00), and a fee of one hundred seventy-five dollars ($175), which fee shall be deposited into

7

the general fund.

8

     (k) For the purposes of this section, any test of a sample of blood, breath, or urine for the

9

presence of alcohol that relies in whole or in part upon the principle of infrared light absorption is

10

considered a chemical test.

11

     (l) If any provision of this section, or the application of any provision, shall for any reason

12

be judged invalid, such a judgment shall not affect, impair, or invalidate the remainder of the

13

section, but shall be confined in this effect to the provision or application directly involved in the

14

controversy giving rise to the judgment.

15

     (m) For the purposes of this section, "servicemember" means a person who is presently

16

serving in the armed forces of the United States, including the Coast Guard, a reserve component

17

thereof, or the National Guard. "Veteran" means a person who has served in the armed forces,

18

including the Coast Guard of the United States, a reserve component thereof, or the National Guard,

19

and has been discharged under other than dishonorable conditions.

20

     31-27-2.1. Refusal to submit to chemical test.

21

     (a) Any person who operates a motor vehicle within this state shall be deemed to have

22

given his or her consent to chemical tests of his or her breath, blood, saliva and/or urine for the

23

purpose of determining the chemical content of his or her body fluids or breath. No more than two

24

(2) complete tests, one for the presence of intoxicating liquor and one for the presence of toluene

25

or any controlled substance, as defined in § 21-28-1.02, shall be administered at the direction of a

26

law enforcement officer having reasonable grounds to believe the person to have been driving a

27

motor vehicle within this state while under the influence of intoxicating liquor, toluene, or any

28

controlled substance, as defined in chapter 28 of title 21, or any combination of these. The director

29

of the department of health is empowered to make and file, with the secretary of state, regulations

30

that prescribe the techniques and methods of chemical analysis of the person's body fluids or breath

31

and the qualifications and certification of individuals authorized to administer the testing and

32

analysis.

33

     (b) If a person, for religious or medical reasons, cannot be subjected to blood tests, the

34

person may file an affidavit with the division of motor vehicles stating the reasons why he or she

 

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1

cannot be required to take blood tests and a notation to this effect shall be made on his or her

2

license. If that person is asked to submit to chemical tests as provided under this chapter, the person

3

shall only be required to submit to chemical tests of his or her breath, saliva or urine. When a person

4

is requested to submit to blood tests, only a physician or registered nurse, or a medical technician

5

certified under regulations promulgated by the director of the department of health, may withdraw

6

blood for the purpose of determining the alcoholic content in it. This limitation shall not apply to

7

the taking of breath, saliva or urine specimens. The person tested shall be permitted to have a

8

physician of his or her own choosing, and at his or her own expense, administer chemical tests of

9

his or her breath, blood, saliva and/or urine in addition to the tests administered at the direction of

10

a law enforcement officer. If a person, having been placed under arrest, refuses upon the request of

11

a law enforcement officer to submit to the tests, as provided in § 31-27-2, none shall be given.

12

     (1) At the initial traffic tribunal appearance, the magistrate shall review the incident, action,

13

and/or arrest reports submitted by the law enforcement officer to determine if there exists

14

reasonable grounds to believe that the person had been driving a motor vehicle while under the

15

influence of intoxicating liquor, toluene, or any controlled substance as defined in chapter 28 of

16

title 21, or any combination thereof. The magistrate shall also determine if the person had been

17

informed of the penalties incurred as a result of failing to submit to a chemical test as provided in

18

this section and that the person had been informed of the implied consent notice contained in

19

subsection (c)(10) of this section. For the purpose of this subsection only, "driving a motor vehicle

20

while under the influence of any controlled substance as defined in chapter 28 of title 21" shall be

21

indicated by the presence or aroma of a controlled substance on or about the person or vehicle of

22

the individual refusing the chemical test or other reliable indicia or articulable conditions that the

23

person was impaired due to their intake of a controlled substance.

24

     (2) If the magistrate determines that subsection (b)(1) of this section has been satisfied they

25

shall promptly order that the person's operator's license or privilege to operate a motor vehicle in

26

this state be immediately suspended. Said suspension shall be subject to the hardship provisions

27

enumerated in § 31-27-2.8.

28

     (c) A traffic tribunal judge or magistrate, or a district court judge or magistrate, pursuant

29

to the terms of subsection (d) of this section, shall order as follows:

30

     (1) Impose, for the first violation, a fine in the amount of two hundred dollars ($200) to

31

five hundred dollars ($500) and shall order the person to perform ten (10) to sixty (60) hours of

32

public community restitution. The person's driving license in this state shall be suspended for a

33

period of six (6) months to one year. The traffic tribunal judge or magistrate shall require attendance

34

at a special course on driving while intoxicated or under the influence of a controlled substance

 

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1

and/or alcohol or drug treatment for the individual. The traffic tribunal judge or magistrate may

2

prohibit that person from operating a motor vehicle that is not equipped with an ignition interlock

3

system and/or blood and urine testing as provided in § 31-27-2.8.

4

     (2) Every person convicted of a second violation within a five-year (5) period, except with

5

respect to cases of refusal to submit to a blood test, shall be guilty of a misdemeanor; shall be

6

imprisoned for not more than six (6) months; shall pay a fine in the amount of six hundred dollars

7

($600) to one thousand dollars ($1,000); perform sixty (60) to one hundred (100) hours of public

8

community restitution; and the person's driving license in this state shall be suspended for a period

9

of one year to two (2) years. The judge or magistrate shall require alcohol and/or drug treatment

10

for the individual. The sentencing judge or magistrate shall prohibit that person from operating a

11

motor vehicle that is not equipped with an ignition interlock system and/or blood and urine testing

12

as provided in § 31-27-2.8.

13

     (3) Every person convicted for a third or subsequent violation within a five-year (5) period,

14

except with respect to cases of refusal to submit to a blood test, shall be guilty of a misdemeanor;

15

and shall be imprisoned for not more than one year; fined eight hundred dollars ($800) to one

16

thousand dollars ($1,000); shall perform not less than one hundred (100) hours of public community

17

restitution; and the person's operator's license in this state shall be suspended for a period of two

18

(2) years to five (5) years. The sentencing judge or magistrate shall prohibit that person from

19

operating a motor vehicle that is not equipped with an ignition interlock system and/or blood and

20

urine testing as provided in § 31-27-2.8. The judge or magistrate shall require alcohol or drug

21

treatment for the individual. Provided, that prior to the reinstatement of a license to a person charged

22

with a third or subsequent violation within a three-year (3) period, a hearing shall be held before a

23

judge or magistrate. At the hearing, the judge or magistrate shall review the person's driving record,

24

his or her employment history, family background, and any other pertinent factors that would

25

indicate that the person has demonstrated behavior that warrants the reinstatement of his or her

26

license.

27

     (4) For a second violation within a five-year (5) period with respect to a case of a refusal

28

to submit to a blood test, a fine in the amount of six hundred dollars ($600) to one thousand dollars

29

($1,000); the person shall perform sixty (60) to one hundred (100) hours of public community

30

restitution; and the person's driving license in this state shall be suspended for a period of two (2)

31

years. The judicial officer shall require alcohol and/or drug treatment for the individual. The

32

sentencing judicial officer shall prohibit that person from operating a motor vehicle that is not

33

equipped with an ignition interlock system as provided in § 31-27-2.8. Such a violation with respect

34

to refusal to submit to a chemical blood test shall be a civil offense.

 

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1

     (5) For a third or subsequent violation within a five-year (5) period with respect to a case

2

of a refusal to submit to a blood test, a fine in the amount of eight hundred dollars ($800) to one

3

thousand dollars ($1,000); the person shall perform not less than one hundred (100) hours of public

4

community restitution; and the person's driving license in this state shall be suspended for a period

5

of two (2) to five (5) years. The sentencing judicial officer shall prohibit that person from operating

6

a motor vehicle that is not equipped with an ignition interlock system as provided in § 31-27-2.8.

7

The judicial officer shall require alcohol and/or drug treatment for the individual. Such a violation

8

with respect to refusal to submit to a chemical test of blood shall be a civil offense. Provided, that

9

prior to the reinstatement of a license to a person charged with a third or subsequent violation within

10

a three-year (3) period, a hearing shall be held before a judicial officer. At the hearing, the judicial

11

officer shall review the person's driving record, his or her employment history, family background,

12

and any other pertinent factors that would indicate that the person has demonstrated behavior that

13

warrants the reinstatement of their license.

14

     (6) For purposes of determining the period of license suspension, a prior violation shall

15

constitute any charge brought and sustained under the provisions of this section or § 31-27-2.

16

     (7) In addition to any other fines, a highway safety assessment of five hundred dollars

17

($500) shall be paid by any person found in violation of this section, the assessment to be deposited

18

into the general fund. The assessment provided for by this subsection shall be collected from a

19

violator before any other fines authorized by this section.

20

     (8) In addition to any other fines and highway safety assessments, a two-hundred-dollar

21

($200) assessment shall be paid by any person found in violation of this section to support the

22

department of health's chemical testing programs outlined in §§ 31-27-2(f) and 31-27-2(g), that

23

shall be deposited as general revenues, not restricted receipts.

24

     (9) No fines, suspensions, assessments, alcohol or drug treatment programs, course on

25

driving while intoxicated or under the influence of a controlled substance, or public community

26

restitution provided for under this section can be suspended.

27

     (10) Implied consent notice for persons eighteen (18) years of age or older: "Rhode Island

28

law requires you to submit to a chemical test of your blood, breath, or urine for the purpose of

29

determining the chemical content of your body fluids or breath. If you refuse this testing, certain

30

penalties can be imposed and include the following: for a first offense, your Rhode Island driver's

31

license or privilege to operate a motor vehicle in this state can be suspended for six (6) months to

32

one year or modified to permit operation in connection with an ignition interlock device for a period

33

specified by law; a fine from two hundred dollars ($200) to five hundred dollars ($500) can be

34

imposed; and you can be ordered to perform ten (10) to sixty (60) hours of community service and

 

LC003594 - Page 111 of 115

1

attend a special course on driving while intoxicated or under the influence of a controlled substance

2

and/or alcohol or drug treatment. If you have had one or more previous offenses within the past

3

five (5) years, your refusal to submit to a chemical test of breath or urine at this time can have

4

criminal penalties, including incarceration up to six (6) months for a second offense and up to one

5

year for a third or subsequent offense, and can carry increased license suspension or ignition

6

interlock period, fines, and community service. All violators shall pay a five hundred dollar ($500)

7

highway safety assessment fee, a two hundred dollar ($200) department of health chemical testing

8

programs assessment fee, and a license reinstatement fee. Refusal to submit to a chemical test of

9

blood shall not subject you to criminal penalties for the refusal itself, but if you have one or more

10

previous offenses other civil penalties may increase. You have the right to be examined at your

11

own expense by a physician selected by you. If you submit to a chemical test at this time, you have

12

the right to have an additional chemical test performed at your own expense. You will be afforded

13

a reasonable opportunity to exercise these rights. Access to a telephone will be made available for

14

you to make those arrangements. You may now use a telephone."

15

     Use of this implied consent notice shall serve as evidence that a person's consent to a

16

chemical test is valid in a prosecution involving driving under the influence of liquor, controlled

17

substances, and/or drugs.

18

     (d) Upon suspending or refusing to issue a license or permit as provided in subsection (a),

19

the traffic tribunal or district court shall immediately notify the person involved in writing, and

20

upon his or her request, within fifteen (15) days, afford the person an opportunity for a hearing as

21

early as practical upon receipt of a request in writing. Upon a hearing, the judge may administer

22

oaths and may issue subpoenas for the attendance of witnesses and the production of relevant books

23

and papers. If the judge finds after the hearing that:

24

     (1) The law enforcement officer making the sworn report had reasonable grounds to believe

25

that the arrested person had been driving a motor vehicle within this state while under the influence

26

of intoxicating liquor, toluene, or any controlled substance, as defined in chapter 28 of title 21, or

27

any combination of these;

28

     (2) The person, while under arrest, refused to submit to the tests upon the request of a law

29

enforcement officer;

30

     (3) The person had been informed of his or her rights in accordance with § 31-27-3; and

31

     (4) The person had been informed of the penalties incurred as a result of noncompliance

32

with this section, the judge shall sustain the violation. The judge shall then impose the penalties set

33

forth in subsection (c) of this section. Action by the judge must be taken within seven (7) days after

34

the hearing or it shall be presumed that the judge has refused to issue his or her order of suspension.

 

LC003594 - Page 112 of 115

1

     (e) For the purposes of this section, any test of a sample of blood, breath, or urine for the

2

presence of alcohol that relies, in whole or in part, upon the principle of infrared light absorption is

3

considered a chemical test.

4

     (f) If any provision of this section, or the application of any provision, shall, for any reason,

5

be judged invalid, the judgment shall not affect, impair, or invalidate the remainder of the section,

6

but shall be confined in this effect to the provisions or application directly involved in the

7

controversy giving rise to the judgment.

8

     31-27-2.9. Administration of chemical test.

9

     (a) Notwithstanding any provision of § 31-27-2.1, if an individual refuses to consent to a

10

chemical test as provided in § 31-27-2.1, and a peace officer, as defined in § 12-7-21, has probable

11

cause to believe that the individual has violated one or more of the following sections: 31-27-1, 31-

12

27-1.1, 31-27-2.2, or 31-27-2.6 and that the individual was operating a motor vehicle under the

13

influence of any intoxicating liquor, toluene or any controlled substance as defined in chapter 21-

14

28, or any combination thereof, a chemical test may be administered without the consent of that

15

individual provided that the peace officer first obtains a search warrant authorizing administration

16

of the chemical test. The chemical test shall determine the amount of the alcohol or the presence of

17

a controlled substance in that person's blood, saliva or breath.

18

     (b) The chemical test shall be administered in accordance with the methods approved by

19

the director of the department of health as provided for in subdivision 31-27-2(c)(4). The individual

20

shall be afforded the opportunity to have an additional chemical test as established in subdivision

21

31-27-2(c)(6).

22

     (c) Notwithstanding any other law to the contrary, including, but not limited to, chapter 5-

23

37.3, any health care provider who, as authorized by the search warrant in subsection (a):

24

     (i) Takes a blood, saliva or breath sample from an individual; or

25

     (ii) Performs the chemical test; or

26

     (iii) Provides information to a peace officer pursuant to subsection (a) above and who uses

27

reasonable care and accepted medical practices shall not be liable in any civil or criminal

28

proceeding arising from the taking of the sample, from the performance of the chemical test or from

29

the disclosure or release of the test results.

30

     (d) The results of a chemical test performed pursuant to this section shall be admissible as

31

competent evidence in any civil or criminal prosecution provided that evidence is presented in

32

compliance with the conditions set forth in subdivisions 31-27-2(c)(3), 31-27-2(c)(4) and 31-27-

33

2(c)(6).

34

     (e) All chemical tests administered pursuant to this section shall be audio and video

 

LC003594 - Page 113 of 115

1

recorded by the law enforcement agency which applied for and was granted the search warrant

2

authorizing the administration of the chemical test.

3

     SECTION 12. This act shall take effect upon passage.

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LC003594 - Page 114 of 115

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO FOOD AND DRUGS -- RHODE ISLAND CANNABIS ACT

***

1

     This act would legalize the possession of up to one ounce (1 oz.) of cannabis for personal

2

use by adults aged twenty-one (21) and older. This act would establish the independent cannabis

3

control commission and supporting advisory board to regulate the cultivation, manufacture and sale

4

of cannabis for both medical and adult recreational use. The act would provide additional tax

5

revenue, with a municipal three percent (3%) local excise tax for participating municipalities and a

6

ten percent (10%) state excise tax added to the sale price for adult recreational use cannabis. This

7

act would further permit the existing compassion centers to sell adult recreational use cannabis to

8

adults over the age of twenty-one (21), on or after October 1, 2022, upon payment of a fee of one

9

hundred twenty-five thousand dollars ($125,000). Upon promulgation of final rules and regulations

10

by the cannabis control commission, twenty-four (24) retail licenses may be issued. Twenty-five

11

percent (25%) of the retail licenses would be reserved for social equity applicants and an additional

12

twenty-five percent (25%) would be reserved for issuance to workers' cooperatives. The act would

13

offer local control over the establishment of cannabis-related license holders within each

14

municipality through their municipal council, and, if desired, a ballot referendum to be placed on

15

the November 8, 2022, ballot. The act would further require that the revenue obtained through all

16

application and license fees be used to create a social equity fund to benefit those communities

17

negatively impacted by the criminalization of cannabis. The act would also provide for

18

expungement for prior cannabis possession convictions which have been decriminalized.

19

     This act would take effect upon passage.

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LC003594 - Page 115 of 115