Chapter 080
2023 -- H 5829
Enacted 06/19/2023

A N   A C T
RELATING TO FOOD AND DRUGS -- THE RHODE ISLAND CANNABIS ACT

Introduced By: Representative Scott Slater

Date Introduced: March 01, 2023

It is enacted by the General Assembly as follows:
     SECTION 1. Section 21-28.11-10.1 of the General Laws in Chapter 21-28.11 entitled "The
Rhode Island Cannabis Act" is hereby amended to read as follows:
     21-28.11-10.1. Transitional period and transfer of authority.
     (a) To protect public health and public safety, upon the effective date of this chapter [May
25, 2022] until final issuance of the commission’s rules and regulations promulgated pursuant to
the provisions of this chapter, there shall exist a transitional period of regulatory and enforcement
authority regarding the production, possession, regulation, distribution, sale and use of cannabis
relating to the sale by hybrid cannabis retailers of adult use cannabis pursuant to § 21-28.11-10.
     (b) During the transitional period, the office of cannabis regulation shall prescribe such
forms, procedures, and requirements as necessary to facilitate the acquisition of hybrid retail and
cultivation licenses by compassion centers and cultivators licensed pursuant to chapter 28.6 of this
title.
     (c) Such forms, procedures, and requirements shall be posted on the website of the office
of cannabis regulation no later than October 15, 2022, at which time an application period will
commence. Applications shall be received, reviewed, and approved on a rolling basis provided that
in no case shall an approved hybrid retailer begin adult use sales before December 1, 2022.
     (d) The forms, procedures, and requirements prescribed by the office of cannabis regulation
shall incorporate, but shall not be limited to, the following:
     (1) Requirements pertaining to the physical premises of hybrid retail licensees. Where
physically possible these shall include prospective licensee plans to physically separate marijuana
and marijuana products designated for adult use and medical sales, respectively, in inventory,
storage, and customer-facing floor and display areas; plans to physically separate sales areas for
adult use and medical sales, which may be provided by a temporary or semi-permanent physical
barrier; plans to provide and maintain a patient consultation area that will allow privacy for
confidential consultation with qualifying patients; and plans to prioritize patient and caregiver
identification verification and physical entry into retail areas in the event of capacity or other
constraints; however, if the premises of a hybrid retail licensee does not allow the licensee to meet
the requirements of this subsection or would cause undue hardship on the licensee, the office of
cannabis regulation may authorize the hybrid retail licensee to conduct adult use sales at an adjunct
location. In authorizing any such adjunct location, the office shall require, at a minimum, the
following:
     (i) The adjunct location must be physically located within the same municipality and
geographic zone;
     (ii) The adjunct location must comply with all municipal zoning requirements and obtain
municipal approval;
     (iii) The approval of any adjunct location will not cause undue hardship upon another
licensed cannabis retailer; and
     (iv) In the instance that an adjunct location is approved by the office, the hybrid cannabis
retailer shall not be permitted to engage in the sale of cannabis for adult use at more than one
premises.
     (2) Requirements pertaining to inventory, product, and sales tracking. These shall include
prospective licensee submission of plans to electronically separate finished marijuana products
designated for medical or adult use sales in hybrid licensees’ inventory and sales tracking systems.
If prospective hybrid licensees are conducting cultivation activities, they shall submit plans to
distinguish between sales of marijuana or finished marijuana products at wholesale based on
designation for medical or adult use sales.
     (3) Requirements relating to the maintenance of medical marijuana program service levels.
These shall include prospective licensee submission of comprehensive policies and procedures
detailing plans to maintain a sufficient quantity and variety of medical marijuana products, and if
substitutions of medical marijuana products with adult use marijuana products are to be made, a
justification for such substitutions. Prospective hybrid licensees shall also be required to designate
an individual who will be primarily responsible for maintenance of medical marijuana program
service levels and ongoing compliance with existing program requirements, rules, and regulations.
     (4) Requirements relating to operating plans, policies, and procedures. These shall include
prospective licensee submission, maintenance of, and adherence to a set of written standard
operating procedures that encompass both adult use and medical marijuana service lines. These
operating plans and procedures shall take the form of an updated operations manual as currently
required under medical marijuana program regulations and shall include, but not be limited to,
policies and procedures relating to the maintenance of medical marijuana program service levels
as defined in this section.
     (5) Requirements relating to the advertising of cannabis and cannabis products by hybrid
cannabis retailers who have been permitted to sell adult use cannabis pursuant to the provisions of
this chapter.
     (e) Notwithstanding the foregoing provisions of this section, all prospective and approved
applicants for hybrid cannabis retailer and cannabis cultivator licenses under this chapter shall
maintain compliance with the existing provisions of chapter 28.6 of this title of the general laws
and the regulations promulgated thereunder until final issuance of the commission’s rules and
regulations, including, but not limited to, existing restrictions and requirements related to financial
disclosures; registration of owners, managers, key persons, agents, and employees; product testing;
packaging and labeling; transportation; and home delivery; and advertising.
     (f) Forms, procedures, and requirements relating to this transitional period may be amended
by the office of cannabis regulation or the commission up until the final issuance of the
commission’s regulations pursuant to the provisions of this chapter at which time the forms,
procedures, and requirements will be superseded by the commission’s final rules and regulations.
     (g) Upon final issuance of the commission’s rules and regulations, the following shall
occur:
     (1) All powers, duties and responsibilities of the department of business regulation and the
office of cannabis regulation with respect to the regulation, administration and enforcement of the
provisions of chapter 28.6 of this title shall be transferred to the commission or as designated by
the commission to the cannabis office.
     (2) All powers, duties and responsibilities of the department of environmental management
with respect to regulation, administration and enforcement of chapter 28.6 of this title shall be
transferred to the commission or as designated by the commission to the cannabis office.
     (3) All powers, duties and responsibilities of the department of health with respect to
regulation, administration and enforcement of chapter 28.6 of this title shall be transferred to the
commission or as designated by the commission to the cannabis office, except for the following:
     (i) Administration of registry identification cards to qualified patients; and
     (ii) Powers delegated to the department pursuant to this chapter or by rules and regulations
of the commission.
     (4) There shall be established a “cannabis office” with the powers, duties and
responsibilities authorized pursuant to § 21-28.11-18.1.
     (5) All powers exercised by state agencies, departments and offices pursuant to the
provisions of subsections (a) and (b) of this section relating to transitional period authority shall
cease.
     (h) Upon final issuance of the commission’s rules and regulations, whenever the term
“office of cannabis regulation” appears in any general law or regulation, the term shall mean the
“cannabis office” as defined in this chapter.
     SECTION 2. This act shall take effect upon passage.
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LC001958
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