ARTICLE 11

RELATING TO ADULT USE MARIJUANA

     SECTION 1. Section 2-26-5 of the General Laws in Chapter 2-26 entitled “Hemp Growth

Act” is hereby amended as follows:

     2-26-5. Authority over licensing and sales. 

     (a) The department shall prescribe rules and regulations for the licensing and regulation of

hemp growers, handlers, licensed CBD distributors, and licensed CBD retailers and persons

employed by the applicant not inconsistent with law, to carry into effect the provision of this chapter

and shall be responsible for the enforcement of the licensing.

     (b) All growers, handlers, licensed CBD distributors, and licensed CBD retailers must have

a hemp license issued by the department. All production, distribution, and retail sale of hemp-

derived consumable CBD products must be consistent with any applicable state or local food

processing and safety regulations, and the applicant shall be responsible to ensure its compliance

with the regulations and any applicable food safety licensing requirements, including, but not

limited to, those promulgated by the department on health.

     (c) The application for a hemp license shall include, but not be limited to, the following:

     (1) (i) The name and address of the applicant who will supervise, manage, or direct the

growing and handling of hemp and the names and addresses of any person or entity partnering or

providing consulting services regarding the growing or handling of hemp; and

     (ii) The name and address of the applicant who will supervise, manage, or direct the

distribution or sale of hemp-derived consumable CBD products, and names and addresses of any

person or entity partnering or providing consulting services regarding the distribution or sale of

hemp-derived CBD products.

     (2) A certificate of analysis that the seeds or plants obtained for cultivation are of a type

and variety that do not exceed the maximum concentration of delta-9 THC, as set forth in § 2-26-

3; any seeds that are obtained from a federal agency are presumed not to exceed the maximum

concentration and do not require a certificate of analysis.

     (3) (i) The location of the facility, including the Global Positioning System location, and

other field reference information as may be required by the department with a tracking program

and security layout to ensure that all hemp grown is tracked and monitored from seed to distribution

outlets.; and

     (ii) The location of the facility and other information as may be required by the department

as to where the distribution or sale of hemp-derived consumable CBD products will occur.

     (4) An explanation of the seed to sale tracking, cultivation method, extraction method, and

certificate of analysis or certificate of analysis for the standard hemp seeds or hemp product if

required by the department.

     (5) Verification, prior to planting any seed, that the plant to be grown is of a type and

variety of hemp that will produce a delta-9 THC concentration of no more than three-tenths of one

percent (0.3%) on a dry-weight basis.

     (6) Documentation that the licensee and/or its agents have entered into a purchase

agreement with a hemp handler, processor, distributor or retailer.

     (7) All applicants:

     (i) Shall apply to the state police, attorney general, or local law enforcement for a National

Criminal Identification records check that shall include fingerprints submitted to the Federal

Bureau of Investigation. Upon the discovery of a disqualifying conviction defined in subsections

(c)(7)(iv) and (c)(7)(v), and in accordance with the rules promulgated by the department, the state

police shall inform the applicant, in writing, of the nature of the conviction, and the state police

shall notify the department, in writing, without disclosing the nature of the conviction, that a

conviction has been found;

     (ii) In those situations in which no conviction has been found, the state police shall inform

the applicant and the department, in writing, of this fact;

     (iii) All applicants shall be responsible for any expense associated with the criminal

background check with fingerprints.

     (iv) Any applicant who has been convicted of any felony offense under chapter 28 of title

21, or any person who has been convicted of murder; manslaughter; first-degree sexual assault;

second-degree sexual assault; first-degree child molestation; second-degree child molestation;

kidnapping; first-degree arson; second-degree arson; mayhem; robbery; burglary; breaking and

entering; assault with a dangerous weapon; or any assault and battery punishable as a felony or

assault with intent to commit any offense punishable as a felony, shall be disqualified from holding

any license or permit under this chapter. The department shall notify any applicant, in writing, of a

denial of a license pursuant to this subsection, provided that any disqualification or denial of license

shall be subject to the provisions of § 28-5.1-14 of the general laws.

     (v) For purposes of this section, "conviction" means, in addition to judgments of conviction

entered by a court subsequent to a finding of guilty, or plea of guilty, those instances where the

defendant has entered a plea of nolo contendere and has received a jail sentence or a suspended jail

sentence, or those instances wherein the defendant has entered into a deferred sentence agreement

with the Rhode Island attorney general and the period of deferment has not been completed.

     (8) Any other information as set forth in rules and regulations as required by the

department.

     (d) [Deleted by P.L. 2019, ch. 88, art. 15, §1].

     (e) The department shall issue a hemp license to the grower or handler applicant if he, she,

or it meets the requirements of this chapter, upon the applicant paying a licensure fee of two

thousand five hundred dollars ($2,500). Said license shall be renewed every two (2) years upon

payment of a two thousand five hundred dollar ($2,500) renewal fee. Any licensee convicted of

any disqualifying offense described in subsection (c)(7)(iv) shall have his, her, or its license

revoked. All license fees shall be directed to the department to help defray the cost of enforcement.

The department shall collect a nonrefundable application fee of two hundred fifty dollars ($250)

for each application to obtain a license. 

     (f) Any grower or handler license applicant or license holder may also apply for and be

issued a CBD distributor and/or CBD retailer license at no additional cost provided their grower or

handler license is issued or renewed. CBD distributor and CBD retailer licenses shall be renewed

each year at no additional fee provided the applicant also holds or renews a grower and/or handler

license.

     (g) For applicants who do not hold, renew, or receive a grower or handler license, CBD

distributor and CBD retailer licenses shall have a licensure fee of five hundred dollars ($500). The

licenses shall be renewed each year upon approval by the department and payment of a five hundred

dollar ($500) renewal fee.

     SECTION 2. Section 21-28.5-2 of Chapter 21-28.5 of the General Laws entitled “Sale of

Drug Paraphernalia” is hereby amended as follows:

     21-28.5-2. Manufacture or delivery of drug paraphernalia – Penalty.

     It is unlawful for any person to deliver, sell, possess with intent to deliver, or sell, or

manufacture with intent to deliver, or sell drug paraphernalia, knowing that it will be used to plant,

propagate, cultivate, grow, harvest, manufacture, compound, convert, produce, process, prepare,

test, analyze, pack, repack, store, contain, conceal, inject, ingest, inhale, or introduce into the human

body a controlled substance in violation of chapter 28 of this title. A violation of this section shall

be punishable by a fine not exceeding five thousand dollars ($5,000) or imprisonment not exceeding

two (2) years, or both. 

     Notwithstanding any other provision of the general laws, the sale, manufacture, or delivery

of drug paraphernalia to a person acting in accordance with chapters 28.6, 28.11, or 28.12 of this

title shall not be considered a violation of this chapter.

     SECTION 3. Sections 21-28.6-3, 21-28.6-5, and 21-28.6-6 of the General Laws in

Chapter 21-28.6 entitled “The Edward O. Hawkins and Thomas C. Slater Medical Marijuana

Act” are hereby amended as follows:

     21-28.6-3 Definitions.

     For the purposes of this chapter:

     (1) "Authorized purchaser" means a natural person who is at least twenty-one (21) years

old and who is registered with the department of health for the purposes of assisting a qualifying

patient in purchasing marijuana from a compassion center. An authorized purchaser may assist no

more than one patient, and is prohibited from consuming marijuana obtained for the use of the

qualifying patient. An authorized purchaser shall be registered with the department of health and

shall possesses a valid registry identification card.

     (2) “Cannabis” means all parts of the plant of the genus marijuana, also known as marijuana

sativa L, whether growing or not; the seeds thereof; the resin extracted from any part of the

plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its

seeds, or resin regardless of cannabinoid content or cannabinoid potency including “marijuana”, and

“industrial hemp” or “industrial hemp products” which satisfy the requirements of chapter 26 of

title 2.

     (3) “Cannabis testing laboratory” means a third-party analytical testing laboratory licensed

by the department of health, in coordination with the department of business regulation, to collect

and test samples of cannabis.

     (4) "Cardholder" means a person who has been registered or licensed with the department

of health or the department of business regulation pursuant to this chapter and possesses a valid

registry identification card or license.

     (5) "Commercial unit" means a building, or other space within a commercial or industrial

building, for use by one business or person and is rented or owned by that business or person.

     (6)(i) "Compassion center" means a not-for-profit corporation, subject to the provisions of

chapter 6 of title 7, and licensed under § 21-28.6-12, that acquires, possesses, cultivates,

manufactures, delivers, transfers, transports, supplies, or dispenses medical marijuana, and/or

related supplies and educational materials, to patient cardholders and/or their registered caregiver,

cardholder or authorized purchaser.

     (ii) "Compassion center cardholder" means a principal officer, board member, employee,

volunteer, or agent of a compassion center who has registered with the department of business

regulation and has been issued and possesses a valid, registry identification card.

     (7) "Debilitating medical condition" means:

     (i) Cancer, glaucoma, positive status for human immunodeficiency virus, acquired immune

deficiency syndrome, Hepatitis C, post-traumatic stress disorder, or the treatment of these

conditions;

     (ii) A chronic or debilitating disease or medical condition, or its treatment, that produces

one or more of the following: cachexia or wasting syndrome; severe, debilitating, chronic pain;

severe nausea; seizures, including but not limited to, those characteristic of epilepsy; or severe and

persistent muscle spasms, including but not limited to, those characteristic of multiple sclerosis or

Crohn's disease; or agitation of Alzheimer's Disease; or

     (iii) Any other medical condition or its treatment approved by the department of health, as

provided for in § 21-28.6-5.

     (8) "Department of business regulation" means the Rhode Island department of business

regulation or its successor agency.

     (9) "Department of health" means the Rhode Island department of health or its successor

agency.

     (10) "Department of public safety" means the Rhode Island department of public safety or

its successor agency.

     (11) "Dried marijuana" means the dried leaves and flowers of the marijuana plant as

defined by regulations promulgated by the department of business regulation.

     (12) "Dwelling unit" means the room, or group of rooms, within a residential dwelling used

or intended for use by one family or household, or by no more than three (3) unrelated individuals,

with facilities for living, sleeping, sanitation, cooking, and eating.

     (13) "Equivalent amount" means the portion of usable marijuana, be it in extracted, edible,

concentrated, or any other form, found to be equal to a portion of dried marijuana, as defined by

regulations promulgated by the departments of business regulation.

     (14) “Immature marijuana plant” means a marijuana plant, rooted or unrooted, with no

observable flowers or buds.

     (15) "Licensed medical marijuana cultivator" means a person or entity, as identified in §

43-3-6, who has been licensed by the department of business regulation to cultivate medical

marijuana pursuant to § 21-28.6-16.

     (16) "Marijuana" has the meaning given that term in § 21-28-1.02.

     (17) “Marijuana establishment licensee” means any person or entity licensed by the

department of business regulation under this chapter or chapter 28.12 of title 21 whose license

permits it to engage in or conduct activities in connection with the medical marijuana program or

adult use marijuana industry. “Marijuana establishment licensees” shall include but not be limited

to, compassion centers, medical marijuana cultivators, and cannabis testing laboratories, adult use

marijuana retailers, hybrid marijuana cultivators, and the holder of any other license issued by the

department of business regulation under chapters 28.6 or 28.12 of title 21 of the general laws and/or

as specified and defined in regulations promulgated by the department of business regulation.

     (18) "Mature marijuana plant" means a marijuana plant that has flowers or buds that are

readily observable by an unaided visual examination.

     (19) “Medical marijuana emporium” means any establishment, facility or club, whether

operated for-profit or nonprofit, or any commercial unit, at which the sale, distribution, transfer or

use of medical marijuana or medical marijuana products is proposed and/or occurs to, by or among

registered patients, registered caregivers, authorized purchaser cardholders or any other person.

This shall not include a compassion center regulated and licensed by the department of business

regulation pursuant to the terms of this chapter.

     (20) “Medical marijuana” means marijuana and marijuana products that satisfy the

requirements of this chapter and have been given the designation of “medical marijuana” due to

dose, potency, form. Medical marijuana products are only available for use by patient cardholders,

and may only be sold to or possessed by patient cardholders, or their registered caregiver, or

authorized purchaser in accordance with this chapter. Medical marijuana may not be sold to,

possessed by, manufactured by, or used except as permitted as under this chapter.

     (21) “Medical marijuana plant tag set” or “plant tag” means any tag, identifier, registration,

certificate, or inventory tracking system authorized or issued by the department or which the

department requires be used for the lawful possession and cultivation of medical marijuana plants

in accordance with this chapter.

     (22) "Medical use" means the acquisition, possession, cultivation, manufacture, use,

delivery, transfer, or transportation of medical marijuana or paraphernalia relating to the

consumption of marijuana to alleviate a patient cardholder's debilitating medical condition or

symptoms associated with the medical condition in accordance with the provisions of this chapter.

     (23) "Practitioner" means a person who is licensed with authority to prescribe drugs

pursuant to chapters 34, 37, and 54 of title 5 who may provide a qualifying patient with a written

certification in accordance with regulations promulgated by the department of health.

     (24) "Primary caregiver" means a natural person who is at least twenty-one (21) years old

who is registered under this chapter in order to, and who may assist one (1) qualifying patient, but

no more than five (5) qualifying patients, with their medical use of marijuana, provided that a

qualified patient may also serve as his or her own primary caregiver subject to the registration and

requirements set forth in § 21-28.6-4.

     (25) "Qualifying patient" means a person who has been certified by a practitioner as having

a debilitating medical condition and is a resident of Rhode Island.

     (26) "Registry identification card" means a document issued by the department of health

or the department of business regulation, as applicable, that identifies a person as a registered

qualifying patient, a registered primary caregiver, or authorized purchaser, or a document issued

by the department of business regulation or department of health that identifies a person as a

registered principal officer, board member, employee, volunteer, or agent of a compassion center,

licensed medical marijuana cultivator, cannabis testing lab, or any other medical marijuana

licensee.

     (27) "Unusable marijuana" means marijuana seeds, stalks, and unusable roots and shall not

count towards any weight-based possession limits established in this chapter.

     (28) "Usable marijuana" means the leaves and flowers of the marijuana plant, and any

mixture or preparation thereof, but does not include the seeds, stalks, and roots of the plant.

     (29) "Wet marijuana" means the harvested leaves and flowers of the marijuana plant before

they have reached a dry state, as defined by regulations promulgated by the department of health

and department of business regulation.

     (30) "Written certification" means a statement signed by a practitioner, stating that, in the

practitioner's professional opinion, the potential benefits of the medical use of marijuana would

likely outweigh the health risks for the qualifying patient. A written certification shall be made only

in the course of a bona fide, practitioner-patient relationship after the practitioner has completed a

full assessment of the qualifying patient's medical history. The written certification shall specify

the qualifying patient's debilitating medical condition or conditions which may include the

qualifying patient’s medical records.

     21-28.6-5 Departments of health and business regulation to issue regulations. 

     (a) Not later than ninety (90) days after the effective date of this chapter, the department of

health shall promulgate regulations governing the manner in which it shall consider petitions from

the public to add debilitating medical conditions to those included in this chapter. In considering

such petitions, the department of health shall include public notice of, and an opportunity to

comment in a public hearing, upon such petitions. The department of health shall, after hearing,

approve or deny such petitions within one hundred eighty (180) days of submission. The approval

or denial of such a petition shall be considered a final department of health action, subject to judicial

review. Jurisdiction and venue for judicial review are vested in the superior court. The denial of a

petition shall not disqualify qualifying patients with that condition, if they have a debilitating

medical condition as defined in § 21-28.6-3(57). The denial of a petition shall not prevent a person

with the denied condition from raising an affirmative defense.

     (b) Not later than ninety (90) days after the effective date of this chapter, the department

of health shall promulgate regulations governing the manner in which it shall consider applications

for, and renewals of, registry identification cards for qualifying patients and authorized purchasers.

The department of health's regulations shall establish application and renewal fees that generate

revenues sufficient to offset all expenses of implementing and administering this chapter. The

department of health may vary the application and renewal fees along a sliding scale that accounts

for a qualifying patient's or caregiver's income. The department of health may accept donations

from private sources in order to reduce the application and renewal fees. 

     (c) Not later than October 1, 2019 January 1, 2022, the department of business regulation

shall promulgate regulations not inconsistent with law, to carry into effect the provisions of this

section, governing the manner in which it shall consider applications for, and renewals of, registry

identification cards for primary caregivers. The department of business regulation’s regulations

shall establish application and renewal fees. The department of business regulation may vary the

application and renewal fees along a sliding scale that accounts for a qualifying patient's or

caregiver's income. The department of business regulation may accept donations from private

sources in order to reduce the application and renewal fees. 

     21-28.6-6 Administration of departments of health and business regulation

regulations.

     (a) The department of health shall issue registry identification cards to qualifying patients

who submit the following, in accordance with the department's regulations. Applications shall

include but not be limited to:

     (1) Written certification as defined in § 21-28.6-3;

     (2) Application fee, as applicable;

     (3) Name, address, and date of birth of the qualifying patient; provided, however, that if

the patient is homeless, no address is required;

     (4) Name, address, and telephone number of the qualifying patient's practitioner;

     (5) Whether the patient elects to grow medical marijuana plants for himself or herself; and

     (6) Name, address, and date of birth of one primary caregiver of the qualifying patient and

any authorized purchaser for the qualifying patient, if any primary caregiver or authorized

purchaser is chosen by the patient or allowed in accordance with regulations promulgated by the

departments of health or business regulation.

     (b) The department of health shall not issue a registry identification card to a qualifying

patient under the age of eighteen (18) unless:

     (1) The qualifying patient's practitioner has explained the potential risks and benefits of the

medical use of marijuana to the qualifying patient and to a parent, guardian, or person having legal

custody of the qualifying patient; and

     (2) A parent, guardian, or person having legal custody consents in writing to:

     (i) Allow the qualifying patient's medical use of marijuana;

     (ii) Serve as the qualifying patient's primary caregiver or authorized purchaser; and

     (iii) Control the acquisition of the marijuana, the dosage, and the frequency of the medical

use of marijuana by the qualifying patient.

     (c) The department of health shall renew registry identification cards to qualifying patients

in accordance with regulations promulgated by the department of health and subject to payment of

any applicable renewal fee.

     (d) The department of health shall not issue a registry identification card to a qualifying

patient seeking treatment for post-traumatic stress disorder (PTSD) under the age of eighteen (18).

     (e) The department of health shall verify the information contained in an application or

renewal submitted pursuant to this section, and shall approve or deny an application or renewal

within thirty-five (35) days of receiving it. The department may deny an application or renewal

only if the applicant did not provide the information required pursuant to this section, or if the

department determines that the information provided was falsified, or that the renewing applicant

has violated this chapter under their previous registration. Rejection of an application or renewal is

considered a final department action, subject to judicial review. Jurisdiction and venue for judicial

review are vested in the superior court.

     (f) If the qualifying patient's practitioner notifies the department of health in a written

statement that the qualifying patient is eligible for hospice care or chemotherapy, the department

of health and department of business regulation, as applicable, shall give priority to these

applications when verifying the information in accordance with subsection (e) and issue a registry

identification card to these qualifying patients, primary caregivers and authorized purchasers within

seventy-two (72) hours of receipt of the completed application. The departments shall not charge a

registration fee to the patient, caregivers or authorized purchasers named in the application. The

department of health may identify through regulation a list of other conditions qualifying a patient

for expedited application processing.

     (g) Following the promulgation of regulations pursuant to § 21-28.6-5(c), the department

of business regulation may issue or renew a registry identification card to the qualifying patient

cardholder's primary caregiver, if any, who is named in the qualifying patient's approved

application. The department of business regulation shall verify the information contained in

applications and renewal forms submitted pursuant to this chapter prior to issuing any registry

identification card. The department of business regulation may deny an application or renewal if

the applicant or appointing patient did not provide the information required pursuant to this section,

or if the department determines that the information provided was falsified, or if the applicant or

appointing patient has violated this chapter under their previous registration or has otherwise failed

to satisfy the application or renewal requirements.

     (1) A primary caregiver applicant or an authorized purchaser applicant shall apply to the

bureau of criminal identification of the department of attorney general, department of public safety

division of state police, or local police department for a national criminal records check that shall

include fingerprints submitted to the Federal Bureau of Investigation. Upon the discovery of any

disqualifying information as defined in subsection (g)(5), and in accordance with the rules

promulgated by the director, the bureau of criminal identification of the department of attorney

general, department of public safety division of state police, or the local police department shall

inform the applicant, in writing, of the nature of the disqualifying information; and, without

disclosing the nature of the disqualifying information, shall notify the department of business

regulation or department of health, as applicable, in writing, that disqualifying information has been

discovered.

     (2) In those situations in which no disqualifying information has been found, the bureau of

criminal identification of the department of attorney general, department of public safety division

of state police, or the local police shall inform the applicant and the department of business

regulation or department of health, as applicable, in writing, of this fact.

     (3) The department of health or department of business regulation, as applicable, shall

maintain on file evidence that a criminal records check has been initiated on all applicants seeking

a primary caregiver registry identification card or an authorized purchaser registry identification

card and the results of the checks. The primary caregiver cardholder shall not be required to apply

for a national criminal records check for each patient he or she is connected to through the

department's registration process, provided that he or she has applied for a national criminal records

check within the previous two (2) years in accordance with this chapter. The department of health

and department of business regulation, as applicable, shall not require a primary caregiver

cardholder or an authorized purchaser cardholder to apply for a national criminal records check

more than once every two (2) years.

     (4) Notwithstanding any other provision of this chapter, the department of business

regulation or department of health may revoke or refuse to issue any class or type of registry

identification card or license if it determines that failing to do so would conflict with any federal

law or guidance pertaining to regulatory, enforcement and other systems that states, businesses, or

other institutions may implement to mitigate the potential for federal intervention or enforcement.

This provision shall not be construed to prohibit the overall implementation and administration of

this chapter on account of the federal classification of marijuana as a schedule I substance or any

other federal prohibitions or restrictions.

     (5) Information produced by a national criminal records check pertaining to a conviction

for any felony offense under chapter 28 of this title 21 ("Rhode Island Controlled Substances Act");

murder; manslaughter; rape; first-degree sexual assault; second-degree sexual assault; first-degree

child molestation; second-degree child molestation; kidnapping; first-degree arson; second-degree

arson; mayhem; robbery; burglary; breaking and entering; assault with a dangerous weapon; assault

or battery involving grave bodily injury; and/or assault with intent to commit any offense

punishable as a felony or a similar offense from any other jurisdiction shall result in a letter to the

applicant and the department of health or department of business regulation, as applicable,

disqualifying the applicant. If disqualifying information has been found, the department of health

or department of business regulation, as applicable may use its discretion to issue a primary

caregiver registry identification card or an authorized purchaser registry identification card if the

applicant's connected patient is an immediate family member and the card is restricted to that

patient only. Any disqualification or denial of registration hereunder shall be subject to the

provisions of § 28-5.1-14 of the general laws.

     (6) The primary caregiver or authorized purchaser applicant shall be responsible for any

expense associated with the national criminal records check.

     (7) For purposes of this section, "conviction" means, in addition to judgments of conviction

entered by a court subsequent to a finding of guilty or a plea of guilty, those instances where the

defendant has entered a plea of nolo contendere and has received a sentence of probation and those

instances where a defendant has entered into a deferred sentence agreement with the attorney

general.

     (8) The office of cannabis regulation may adopt rules and regulations based on federal

guidance provided those rules and regulations are designed to comply with federal guidance and

mitigate federal enforcement against the registrations and licenses issued under this chapter.

     (h) (1) On or before December 31, 2016, the department of health shall issue registry

identification cards within five (5) business days of approving an application or renewal that shall

expire two (2) years after the date of issuance.

     (2) Effective January 1, 2017, and thereafter, the department of health or the department of

business regulation, as applicable, shall issue registry identification cards within five (5) business

days of approving an application or renewal that shall expire one year after the date of issuance.

     (3) Registry identification cards shall contain:

     (i) The date of issuance and expiration date of the registry identification card;

     (ii) A random registry identification number;

     (iii) A photograph; and

     (iv) Any additional information as required by regulation or the department of health or

business regulation as applicable.

     (i) Persons issued registry identification cards by the department of health or department

of business regulation shall be subject to the following:

     (1) A qualifying patient cardholder shall notify the department of health of any change in

his or her name, address, primary caregiver, or authorized purchaser; or if he or she ceases to have

his or her debilitating medical condition, within ten (10) days of such change.

     (2) A qualifying patient cardholder who fails to notify the department of health of any of

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

fifty dollars ($150). If the patient cardholder has ceased to suffer from a debilitating medical

condition, the card shall be deemed null and void and the person shall be liable for any other

penalties that may apply to the person's nonmedical use of marijuana.

     (3) A primary caregiver cardholder or authorized purchaser shall notify the issuing

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

primary caregiver cardholder or authorized purchaser who fails to notify the issuing department of

any of these changes is responsible for a civil infraction, punishable by a fine of no more than one

hundred fifty dollars ($150).

     (4) When a qualifying patient cardholder or primary caregiver cardholder notifies the

department of health or department of business regulation, as applicable, of any changes listed in

this subsection, the department of health or department of business regulation, as applicable, shall

issue the qualifying patient cardholder and each primary caregiver cardholder a new registry

identification card within ten (10) days of receiving the updated information and a ten-dollar

($10.00) fee.

     (5) When a qualifying patient cardholder changes his or her primary caregiver or authorized

purchaser, the department of health or department of business regulation, as applicable shall notify

the primary caregiver cardholder or authorized purchaser within ten (10) days. The primary

caregiver cardholder's protections as provided in this chapter as to that patient shall expire ten (10)

days after notification by the issuing department. If the primary caregiver cardholder or authorized

purchaser is connected to no other qualifying patient cardholders in the program, he or she must

return his or her registry identification card to the issuing department.

     (6) If a cardholder or authorized purchaser loses his or her registry identification card, he

or she shall notify the department that issued the card and submit a ten-dollar ($10.00) fee within

ten (10) days of losing the card. Within five (5) days, the department of health or department of

business regulation shall issue a new registry identification card with new random identification

number.

     (7) Effective January 1, 2019, if a patient cardholder chooses to alter his or her registration

with regard to the growing of medical marijuana for himself or herself, he or she shall notify the

department prior to the purchase of medical marijuana tags or the growing of medical marijuana

plants.

     (8) If a cardholder or authorized purchaser willfully violates any provision of this chapter

as determined by the department of health or the department of business regulation, his or her

registry identification card may be revoked.

     (j) Possession of, or application for, a registry identification card shall not constitute

probable cause or reasonable suspicion, nor shall it be used to support the search of the person or

property of the person possessing or applying for the registry identification card, or otherwise

subject the person or property of the person to inspection by any governmental agency.

     (k)(1) Applications and supporting information submitted by qualifying patients, including

information regarding their primary caregivers, authorized purchaser, and practitioners, are

confidential and protected in accordance with the federal Health Insurance Portability and

Accountability Act of 1996, as amended, and shall be exempt from the provisions of chapter 2 of

title 38 et seq. (Rhode Island access to public records act) and not subject to disclosure, except to

authorized employees of the departments of health and business regulation as necessary to perform

official duties of the departments, and pursuant to subsection (l) and (m).

     (2) The application for qualifying patient's registry identification card shall include a

question asking whether the patient would like the department of health to notify him or her of any

clinical studies about marijuana's risk or efficacy. The department of health shall inform those

patients who answer in the affirmative of any such studies it is notified of, that will be conducted

in Rhode Island. The department of health may also notify those patients of medical studies

conducted outside of Rhode Island.

     (3) The department of health and the department of business regulation, as applicable, shall

maintain a confidential list of the persons to whom the department of health or department of

business regulation has issued authorized patient, primary caregiver, and authorized purchaser

registry identification cards. Individual names and other identifying information on the list shall be

confidential, exempt from the provisions of Rhode Island access to public records, chapter 2 of title

38, and not subject to disclosure, except to authorized employees of the departments of health and

business regulation as necessary to perform official duties of the departments and of this section.

     (l) Notwithstanding subsections (k) and (m), the departments of health and business

regulation, as applicable, shall verify to law enforcement personnel whether a registry identification

card is valid and may provide additional information to confirm whether a cardholder is compliant

with the provisions of this chapter and the regulations promulgated hereunder. The department of

business regulation shall verify to law enforcement personnel whether a registry identification card

is valid and may confirm whether the cardholder is compliant with the provisions of this chapter

and the regulations promulgated hereunder. This verification may occur through the use of a shared

database, provided that any medical records or confidential information in this database related to

a cardholder’s specific medical condition is protected in accordance with subsection (k)(1).

     (m) It shall be a crime, punishable by up to one hundred eighty (180) days in jail and a one

thousand dollar ($1,000) fine, for any person, including an employee or official of the departments

of health, business regulation, public safety, or another state agency or local government, to breach

the confidentiality of information obtained pursuant to this chapter. Notwithstanding this provision,

the department of health and department of business regulation employees may notify law

enforcement about falsified or fraudulent information submitted to the department or violations of

this chapter. Nothing in this act shall be construed as to prohibit law enforcement, public safety,

fire, or building officials from investigating violations of, or enforcing state law.

     (n) On or before the fifteenth day of the month following the end of each quarter of the

fiscal year, the department of health and the department of business regulation shall report to the

governor, the speaker of the House of Representatives, and the president of the senate on

applications for the use of marijuana for symptom relief. The report shall provide:

     (1) The number of applications for registration as a qualifying patient, primary caregiver,

or authorized purchaser that have been made to the department of health and the department of

business regulation during the preceding quarter, the number of qualifying patients, primary

caregivers, and authorized purchasers approved, the nature of the debilitating medical conditions

of the qualifying patients, the number of registrations revoked, and the number and specializations,

if any, of practitioners providing written certification for qualifying patients.

     (o) On or before September 30 of each year, the department of health and the department

of business regulation, as applicable, shall report to the governor, the speaker of the House of

Representatives, and the president of the senate on the use of marijuana for symptom relief. The

report shall provide:

     (1) The total number of applications for registration as a qualifying patient, primary

caregiver, or authorized purchaser that have been made to the department of health and the

department of business regulation, the number of qualifying patients, primary caregivers, and

authorized purchasers approved, the nature of the debilitating medical conditions of the qualifying

patients, the number of registrations revoked, and the number and specializations, if any, of

practitioners providing written certification for qualifying patients;

     (2) The number of active qualifying patient, primary caregiver, and authorized purchaser

registrations as of June 30 of the preceding fiscal year;

     (3) An evaluation of the costs permitting the use of marijuana for symptom relief, including

any costs to law enforcement agencies and costs of any litigation;

     (4) Statistics regarding the number of marijuana-related prosecutions against registered

patients and caregivers, and an analysis of the facts underlying those prosecutions;

     (5) Statistics regarding the number of prosecutions against physicians for violations of this

chapter; and

     (6) Whether the United States Food and Drug Administration has altered its position

regarding the use of marijuana for medical purposes or has approved alternative delivery systems

for marijuana. 

     (p) After June 30, 2018, the department of business regulation shall report to the speaker

of the house, senate president, the respective fiscal committee chairpersons, and fiscal advisors

within 60 days of the close of the prior fiscal year. The report shall provide:

     (1) The number of applications for registry identification cards to compassion center staff,

the number approved, denied and the number of registry identification cards revoked, and the

number of replacement cards issued;

     (2) The number of applications for compassion centers and licensed cultivators;

     (3) The number of marijuana plant tag sets ordered, delivered, and currently held within

the state;

     (4) The total revenue collections of any monies related to its regulator activities for the

prior fiscal year, by the relevant category of collection, including enumerating specifically the total

amount of revenues foregone or fees paid at reduced rates pursuant to this chapter.

     SECTION 4. Chapter 21-28.6 of the General Laws entitled “The Edward O. Hawkins and

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

section:

     21-28.6-16.1 Procurement and transfer of marijuana. 

     (a) A compassion center or licensed medical marijuana cultivator that obtains a

corresponding hybrid license pursuant to chapter 28.12 of title 21 may procure marijuana and

marijuana products from or transfer medical marijuana for processing and product manufacturing

to a marijuana establishment that is licensed under chapter 28.12 provided such procurement,

processing, manufacturing and transfer is conducted in accordance and compliance with chapters

28.6, 28.11 and 28.12 of title 21 and regulations promulgated by the office of cannabis regulation

including regulations regarding product testing, labeling, packaging and other requirements

designed to ensure health, safety and patient access and all applicable provisions of title 44.

      (b) Notwithstanding any other provision of the general laws, a licensed compassion center

that also holds a license as a hybrid marijuana retailer pursuant to chapter 28.12 of title 21 and the

regulations promulgated hereunder shall be exempt from the requirements of chapter 28.6 of title

21 requiring registration as a not-for-profit corporation under chapter 6 of title 7 of the general

laws, provided the compassion center maintains operation and licensure as a hybrid marijuana

retailer in good standing with the department of business regulation. The department of business

regulation may promulgate regulations or issue guidance to facilitate the transition from a not-for-

profit corporation to a for profit corporation or other entity including but not limited to the

requirement that the compassion center must update and/or resubmit licensing and application

documents which reflect this transfer.

SECTION 5. Title 21 of the General Laws entitled "FOOD AND DRUGS" is hereby

amended by adding thereto the following chapters 28.11 and 28.12:

CHAPTER 28.11

ADULT USE OF MARIJUANA ACT

     21-28.11-1. Short title.

     This chapter shall be known and may be cited as the "Adult Use of Marijuana Act."

     21-28.11-2. Legislative Findings.

     The general assembly finds and declares that:

     (1) Prohibiting the possession, cultivation, and sale of cannabis to adults has proven to be

an ineffective policy for the State of Rhode Island. In the absence of a legal, tightly regulated

market, an illicit cannabis industry has thrived, undermining the public health, safety and welfare

of Rhode Islanders.

(2) Regional and national shifts in cannabis policy have increased access to legal cannabis

and marijuana products for Rhode Islanders in other states, the sale of which benefits the residents

of the providing state while providing no funds to the State of Rhode Island to address the public

health, safety and welfare externalities that come with increased access to cannabis, including

marijuana.

(3) It is in the best interests of the of the State of Rhode Island to implement a new

regulatory framework and tax structure for the commercial production and sale of cannabis and

cannabis products, all aspects of which shall be tightly regulated and controlled by the provisions

of this act and the office of cannabis regulation, the revenue from which is to be used to tightly

regulate cannabis and cannabis products and to study and mitigate the risks and deleterious

impacts that cannabis and marijuana use may have on the citizens and State of Rhode Island.

21-28.11-3. Definitions.

For purposes of this chapter:

     (1) “Adult use marijuana cultivator” means an entity that holds a license to cultivate

marijuana pursuant to chapter 28.12 of title 21 and in accordance with regulations promulgated by

the office of cannabis regulation and includes a hybrid marijuana cultivator.

     (2) "Adult use marijuana retailer" means an entity that holds a license to sell marijuana

at retail pursuant to chapter 28.12 of title 21 and in accordance with regulations promulgated by

the office of cannabis regulation and includes a hybrid marijuana retailer.

     (3) “Cannabis” means all parts of the plant of the genus marijuana, also known as marijuana

sativa L, whether growing or not; the seeds thereof; the resin extracted from any part of the

plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its

seeds, or resin regardless of cannabinoid content or cannabinoid potency including “marijuana”, and

“industrial hemp” or “industrial hemp products” which satisfy the requirements of chapter 2-26 of

the general laws and the regulations promulgated thereunder.

     (4) “Cannabis plant” means a cannabis plant, rooted or unrooted, mature, or immature, with

or without flowers or buds.

     (5) “Department” or “department of business regulation” means the office of cannabis regulation

within the department of business regulation or its successor agency.

     (6) "Dwelling unit" means a room or group of rooms within a residential dwelling used or

intended for use by one family or household, or by no more than three (3) unrelated individuals,

with facilities for living, sleeping, sanitation, cooking, and eating.

     (7) "Equivalent amount" means the portion of usable marijuana, be it in extracted, edible,

concentrated, or any other form, found to be equal to a portion of dried, marijuana, as defined by

regulations promulgated by the office of cannabis regulation.

     (8) "Hybrid marijuana cultivator" means an entity that holds a medical marijuana

cultivator license pursuant to chapter 28.6 of title 21 that also holds a license to cultivate marijuana

pursuant to chapter 28.12 of title 21 and in accordance with regulations promulgated by the

office of cannabis regulation.

     (9) "Hybrid marijuana retailer" means an entity that holds a medical marijuana

compassion center license pursuant to chapter 28.6 of title 21 that also holds a license to sell

marijuana at retail pursuant to chapter 28.12 of title 21 and in accordance with regulations

promulgated by the office of cannabis regulation.

     (10) "Industrial Hemp" means the plant of the genus cannabis and any part of such plant,

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

three-tenths percent (0.3%) on a dry-weight basis of any part of the plant cannabis, or per volume

or weight of cannabis product or the combined percent of delta-9 tetrahydrocannabinol and

tetrahydrocannabinolic acid in any part of the plant cannabis regardless of the moisture content,

which satisfy the requirements of chapter 2-26 of the general laws and the regulations promulgated

thereunder.

     (11) "Industrial Hemp products" means all products made from industrial hemp plants,

including, but not limited to, concentrated oil, cloth, cordage, fiber, food, fuel, paint, paper,

construction materials, plastics, seed, seed meal, seed oil, and certified for cultivation which satisfy

the requirements of chapter 2-26 of the general laws and the regulations promulgated thereunder.

     (12) "Marijuana" means all parts of the plant cannabis sativa L., whether growing or not;

the seeds of the plant; the resin extracted from any part of the plant; and every compound,

manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin, but shall not

include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the

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

mature stalks, (except the resin extracted from it), fiber, oil or cake, or the sterilized seed from the

plant which is incapable of germination. Marijuana shall not include “industrial hemp” or”

industrial hemp products” which satisfy the requirements of chapter 26 of title 2 of the general laws

and the regulations promulgated thereunder.

     (13) "Marijuana establishment" and “marijuana establishment licensee” means any person

or entity licensed by the office of cannabis regulation under chapter 28.12 or chapter 28.6 of title

21 whose license permits it to engage in or conduct activities in connection with the adult use

marijuana industry or medical marijuana program and includes but is not limited to a licensed

adult use marijuana retailer, marijuana testing facility, hybrid marijuana retailer, adult use

marijuana cultivator, hybrid marijuana cultivator, compassion center, medical marijuana cultivator,

or any other license issued by the office of cannabis regulation under chapter 28.12 or chapter 28.6

of title 21 and/or as specified and defined in regulations promulgated by the office of cannabis

regulation.

     (14) "Marijuana paraphernalia" means equipment, products, and materials which are

used or intended for use in planting, propagating, cultivating, growing, harvesting,

manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing,

packaging, repackaging, storing, containing, concealing, ingesting, or inhaling marijuana, or

otherwise introducing marijuana into the human body.

     (15) "Marijuana products" means any form of marijuana, including concentrated marijuana

and products that are comprised of marijuana and other ingredients that are intended for use or

consumption, such as, but not limited to, extracts, infusions, edible products, ointments, and tinctures,

as further defined in regulations promulgated by the office of cannabis regulation.

     (16) "Marijuana testing facility" and “cannabis testing laboratory” means a third-party

analytical testing laboratory licensed by the departments of health and office of cannabis regulation

to collect and test samples of cannabis pursuant to regulations promulgated by the departments.

     (17) “Office of cannabis regulation” means the office of cannabis regulation within the

department of business regulation.

     (18) "Public place" means any street, alley, park, sidewalk, public building other than

individual dwellings, or any place of business or assembly open to or frequented by the public,

and any other place to which the public has access.

     (19) "Smoke" or "smoking" means heating to at least the point of combustion, causing plant

material to burn, inhaling, exhaling, burning, or carrying any lighted or heated cigarette, pipe, weed, plant,

other marijuana product in any manner or in any form intended for inhalation in any manner or form and

includes but is not limited to the use of electronic cigarettes, electronic pipes, electronic marijuana delivery

system products, or other similar products that rely on vaporization or aerosolization.

      (20) "State prosecution" means prosecution initiated or maintained by the state of Rhode

Island or an agency or political subdivision of the state of Rhode Island.

     (21) “Vaporize” or “vape” means heating below the point of combustion and resulting in a

vapor or mist.

     21-28.11-4. Exempt activities.

     Effective from and after April 1, 2022, except as otherwise provided in this chapter:

     (1) A person who is twenty-one (21) years of age or older is exempt from arrest, civil or

criminal penalty, seizure or forfeiture of assets, discipline by any state or local licensing board,

and state prosecution for solely engaging in the following acts:

     (i) Actually or constructively using, obtaining, purchasing, transporting, or possessing one

ounce (1 oz.) or less of marijuana plant material, or an equivalent amount of marijuana product as

determined by regulations promulgated by the office of cannabis regulation, provided that a person

who is twenty-one (21) years of age or older may only purchase one ounce (1 oz.) of marijuana

plant material, or an equivalent amount of marijuana product as determined by regulations

promulgated by the office of cannabis regulation per day;

     (ii) Possessing in the person’s primary residence in secured and locked storage five ounces

(5 oz) or less of marijuana plant material or an equivalent amount of marijuana product as determined

by regulations promulgated by the office of cannabis regulation, or possessing in any dwelling unit

used as the a primary residence by two or more persons who are each twenty-one (21) years of age

or older in secured and locked storage ten ounces (10 oz.) or less of marijuana plant material or an

equivalent amount of marijuana product as determined by regulations promulgated by the office of

cannabis regulation;

     (iii) Controlling any premises or vehicle where persons who are twenty-one (21) years of

age or older possess, process, or store amounts of marijuana plant material and marijuana products

that are legal under state law under subsections (1)(i) and (1)(ii) of this section, provided that any and

all marijuana plant material and/or marijuana products in a vehicle are sealed, unused, and in their

original unopened packaging;

     (iv) Giving away, without consideration, the amounts of marijuana and marijuana products

that are legal under state law under subsection (1)(i) of this section, if the recipient is a person

who is twenty-one (21) years of age or older, provided the gift or transfer of marijuana is not advertised

or promoted to the public and the gift or transfer of marijuana is not in conjunction with the sale or transfer

of any money, consideration or value, or another item or any other services in an effort to evade laws

governing the sale of marijuana;

     (v) Aiding and abetting another person who is twenty-one (21) years of age or older in the

actions allowed under this chapter; and

     (vi) Any combination of the acts described within subsections (1)(i) through (1)(v) of this

section, inclusive.

     (2) Except as provided in this chapter and chapter 28.12 of title 21, an adult use

marijuana retailer, hybrid marijuana retailer or any person who is twenty-one (21) years of age

or older and acting in their capacity as an owner, principal officer, partner, board member,

employee, or agent of a licensed retailer is exempt from arrest, civil or criminal penalty, seizure

or forfeiture of assets, discipline by any state or local licensing board, and state prosecution for

solely engaging in the following acts:

     (i) Actually or constructively transporting or possessing marijuana or marijuana products that

were purchased from a hybrid marijuana cultivator, another adult use marijuana retailer, or any other

marijuana establishment in accordance with regulations promulgated by the office of cannabis

regulation;

     (ii) Manufacturing, possessing, producing, obtaining, or purchasing marijuana paraphernalia;

     (iii) Selling, delivering, or transferring marijuana or marijuana products to another retailer in

accordance with regulations promulgated by the office of cannabis regulation;

     (iv) Selling, transferring, or delivering, no more than, one ounce (1 oz.) of marijuana, or an

equivalent amount of marijuana product per day, or marijuana paraphernalia to any person who is

twenty-one (21) years of age or older, in accordance with regulations promulgated by the office of

cannabis regulation and within the transaction limits of this chapter, chapter 21-28.12 and transactions

limits specified in regulations promulgated by the office of cannabis regulation;

     (v) Transferring or delivering marijuana or marijuana products to a cannabis testing facility

in accordance with regulations promulgated by the office of cannabis regulation;

     (vi) Controlling any premises or vehicle where marijuana, marijuana products, and

marijuana paraphernalia are possessed, sold, or deposited in a manner that is not in conflict with this

chapter or the regulations pursuant thereto; and

     (vii) Any combination of the acts described within subsections (2)(i) through (2)(vi) of this

section, inclusive.

     (3) Except as provided in this chapter and chapter 28.12 of title 21, an adult use marijuana

cultivator, hybrid marijuana cultivator or any person who is twenty-one (21) years of age or older

and acting in their capacity as an owner, principal officer, partner, board member, employee, or

agent of a licensed cultivator is exempt from arrest, civil or criminal penalty, seizure or forfeiture

of assets, discipline by any state or local licensing board, and state prosecution for solely engaging

in the following acts:

     (i) Cultivating, packing, processing, transporting, or manufacturing marijuana, but not

marijuana products, in accordance with regulations promulgated by the office of cannabis

regulation;

     (ii) Transporting or possessing marijuana that was produced by the hybrid marijuana

cultivator or another marijuana establishment, in accordance with regulations promulgated by the

office of cannabis regulation;

     (iii) Selling, delivering, or transferring marijuana to an adult use marijuana retailer, hybrid

marijuana retailer, another hybrid marijuana cultivator, or any other marijuana establishment, in

accordance with regulations promulgated by the office of cannabis regulation;

     (iv) Purchasing marijuana from another hybrid marijuana cultivator;

     (v) Delivering or transferring marijuana to a marijuana testing facility;

     (vi) Controlling any premises or vehicle where marijuana is possessed, manufactured, sold, or

deposited, in accordance with regulations promulgated by the office of cannabis regulation; and

     (vii) Any combination of the acts described within subsections (3)(i) through (3)(vi) of this

section, inclusive.

     (4) Except as provided in this chapter and chapter 28.12 of title 21, a cannabis testing

facility or any person who is twenty-one (21) years of age or older and acting in their capacity as

an owner, principal officer, owner, partner, board member, employee, or agent of a licensed

cannabis testing facility shall not be subject to state prosecution; search, except by the department

of business regulation or department of health pursuant to §21-28.12-8; seizure; or penalty in

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

or disciplinary action by a court or business licensing board or entity solely engaging in for the

following acts:

     (i) Acquiring, transporting, storing, or possessing marijuana or marijuana products, in

accordance with regulations promulgated by the office of cannabis regulation;

     (ii) Returning marijuana and marijuana products to marijuana cultivation facilities, marijuana

retailers, other marijuana establishment licensees and industrial hemp license holders, in accordance

with regulations promulgated by the office of cannabis regulation;

     (iii) Receiving compensation for analytical testing, including but not limited to testing

for contaminants and potency; and

     (iv) Any combination of the acts described within subsections (4)(i) through (4)(iii) of this

section, inclusive.

     (5) The acts listed in subsections (1) through (4) of this section, when undertaken in

compliance with the provisions of this chapter and regulations promulgated hereunder, are lawful

under Rhode Island law.

      (6) Except as provided in this chapter and chapter 28.12 of title 21, a marijuana

establishment licensee or any person who is twenty-one (21) years of age or older and acting

in their capacity as an owner, principal officer, partner, board member, employee, or agent of

licensed a marijuana establishment created by the office of cannabis regulation is exempt from

arrest, civil or criminal penalty, seizure or forfeiture of assets, discipline by any state or local

licensing board, and state prosecution solely for possessing, transferring, dispensing, or delivering

marijuana in accordance with the corresponding marijuana establishment license regulations

promulgated by the office of cannabis regulation, or otherwise engaging in activities permitted

under the specific marijuana establishment license it holds as issued by the office of cannabis

regulation and the regulations promulgated by the office of cannabis regulation.

     (7) Except for the exemptions set forth in subsection (1) of this section which shall be

effective from and after April 1, 2022, the exemptions set forth in subsections (2), (3), (4), (5) and

(6) of this section shall be effective as to a marijuana establishment licensee from and after the date

of issuance of a license by the office of cannabis regulation.

     21-28.11-5. Authorized activities; paraphernalia.

     (a) Any person who is twenty-one (21) years of age or older is authorized to manufacture,

produce, use, obtain, purchase, transport, or possess, actually or constructively, marijuana

paraphernalia in accordance with all applicable laws.

     (b) Any person who is twenty-one (21) years of age or older is authorized to distribute or

sell marijuana paraphernalia to marijuana establishments or persons who are twenty-one (21) years

of age or older in accordance with all applicable laws.

     21-28.11-6. Unlawful activities; penalties.

     (a) Except as expressly provided in this chapter and chapters 2-26, 28.6 and 21-28.12, no

person or entity shall cultivate, grow, manufacture, process, or otherwise produce cannabis,

cannabis plants or cannabis products.

     (b) Any person who cultivates, grows, manufactures, processes, or otherwise produces

cannabis, cannabis plants or cannabis products in violation of this chapter and chapters 2-26, 21-

28.6, 21-28.12, and/or the regulations promulgated hereunder shall be subject to imposition of an

administrative penalty and order by the office of cannabis regulation as follows:

     (i) for a violation of this section involving one (1) to five (5) cannabis plants, an

administrative penalty of $2,000 per plant and an order requiring forfeiture and/or destruction of

said plants;

     (ii) for a violation of this section involving six (6) to ten (10) cannabis plants, an

administrative penalty of $3,000 per plant and an order requiring forfeiture and/or destruction of

said plants;

     (iii) for a violation of this section involving eleven (11) to twenty (20) cannabis plants, an

administrative penalty of $4,000 per plant and an order requiring forfeiture and/or destruction of

said plants;

     (iv) for a violation of this section involving more than twenty (20) cannabis plants, an

administrative penalty of $5,000 per plant and an order requiring forfeiture and/or destruction of

said plants;

     (v) for any violation of this section involving more than twenty (20) cannabis plants, such

person and, in the case of an entity such entity’s principal officers and other key persons, shall also

be guilty of a felony, and upon conviction shall be punished by imprisonment and a fine as provided

in chapter 21-28 of the general laws and the attorney general shall prosecute such criminal

violation; and

     (vi) for any violation of this section involving possession of marijuana material or marijuana

products over the legal possession limits of this chapter, there shall be an administrative penalty of $2,000

per ounce of equivalent marijuana material over the legal possession limit and an order requiring

forfeiture and/or destruction of said marijuana.

     21-28.11-7. Activities not exempt.

     The provisions of this chapter do not exempt any person from arrest, civil or criminal

penalty, seizure or forfeiture of assets, discipline by any state or local licensing board or authority,

and state prosecution for, nor may they establish an affirmative defense based on this chapter

to charges arising from, any of the following acts:

     (1) Driving, operating, or being in actual physical control of a vehicle or a vessel under power

or sail while impaired by marijuana or marijuana products;

     (2) Possessing marijuana or marijuana products if the person is incarcerated;

     (3) Possessing marijuana or marijuana products in any local detention facility, county jail,

state prison, reformatory, or other correctional facility, including, without limitation, any facility for the

detention of juvenile offenders; or

     (4) Manufacturing or processing of marijuana products with the use of prohibited solvents,

in violation of § 21-28.11-13.

     21-28.11-8. Marijuana use prohibitions.

     (a) No person shall smoke, vaporize or otherwise consume or use cannabis in a public

place. A person who violates this section shall be subject to imposition of any applicable penalty

or fine established pursuant to local ordinance by the municipality where the public consumption

or use occurred.

     (b) No person shall smoke or vaporize cannabis in, on or about the premises of any housing

that is subject to regulation or otherwise within the purview of chapters 45-25, 45-26, 45-53 or 45-

60 of the general laws and any regulations promulgated thereunder. A person who smokes or

vaporizes cannabis in, on or about such housing premises shall be subject to imposition of any

applicable penalty established pursuant to local ordinance, access prohibition or restriction, eviction

or other action that may lawfully be taken by the owner and/or applicable authority with respect to

said housing.

     (c) No person shall smoke or vaporize cannabis in, on or about the premises of any multi-

unit housing complex or building without the written permission of the owner of such property

and/or any applicable governing body of the housing complex or building. A person who smokes

or vaporizes cannabis in, on or about any multi-unit housing complex or building premises without

such written permission shall be subject to imposition of any applicable penalty established

pursuant to local ordinance, access prohibition or restriction, eviction or other action that may

lawfully be taken by the owner and/or any applicable authority with respect to such multi- unit

housing complex or building.

     (d) No person or entity shall permit smoking, vaporizing or other consumption or use, sale,

distribution or other transfer or any proposed sale, distribution or transfer, of cannabis or cannabis

products in, on or about the premises of any place of business, establishment, or club, whether

public or private, and whether operated for-profit or nonprofit, or any commercial property or other

premises as further defined through regulations promulgated by the office of cannabis regulation,

unless a cannabis social use license or temporary cannabis social use permit has been issued by the

office of cannabis regulation with respect to such business, establishment, club or commercial

property premises in accordance with regulations promulgated by the office of cannabis regulation.

Any person or entity who violates this section shall be subject to imposition of administrative fine

and/or other penalty as prescribed by the office of cannabis regulation in such regulations.

     21-28.11-9. Places of employment.

     (a) Nothing in this chapter shall be construed to require an employer to accommodate the

use or possession of marijuana, or being under the influence of marijuana, in any workplace.

     (b) An employer shall be entitled to implement policies prohibiting the use or possession

of marijuana in the workplace and/or working under the influence of marijuana, provided such

policies are in writing and uniformly applied to all employees and an employee is given prior

written notice of such policies by the employer.

     (c) The provisions of this chapter shall not permit any person to undertake any task under

the influence of marijuana when doing so would constitute negligence or professional malpractice,

jeopardize workplace safety, or to operate, navigate or be in actual physical control of any motor

vehicle or other transport vehicle, aircraft, motorboat, machinery or equipment, or firearms under

the influence of marijuana.

     (d) Notwithstanding any other section of the general laws, upon specific request of a person

who is a qualifying medical marijuana patient cardholder under chapter 28.6 of title 21, the

department of health may verify the requesting cardholder’s status as a valid patient cardholder to

the qualifying patient cardholder’s employer, in order to ensure compliance with patient protections

of §21-28.6-4(e).

     (e) Notwithstanding any other section of the general laws, an employer may take

disciplinary action against an employee, including termination of employment, if the results of a

drug test administered in accordance with section § 28-6.5-1 of the general laws demonstrates that

the employee was under the influence of or impaired by marijuana while in the workplace or during

the performance of work. For purposes of this subsection (e), a drug test that yields a positive result

for cannabis metabolites shall not be construed as proof that an employee is under the influence of

or impaired by marijuana unless the test yields a positive result for active THC, delta-9-

tetrahydrocannabinol, delta-8-tetrahydrocannabinol, or any other active cannabinoid found in

marijuana which causes intoxication and/or impairment.

     21-28.11-10. Private property.

     (a) Except as provided in this section, the provisions of this chapter do not require any

person, corporation, or any other entity that occupies, owns, or controls a property to allow the

consumption, or transfer of marijuana on or in that property.

     (b) Except as provided in this section, in the case of the rental of a residential dwelling

unit governed by chapter 18 of title 34, a landlord may not prohibit the consumption of cannabis

by non-smoked or non-vaporized means, or the transfer without compensation of cannabis by the

tenant as defined in § 34-18-11, provided the tenant is in compliance with the possession and

transfer limits and other requirements set forth in § 21-28.11-4(1)(i)-(vi), and provided any such

consumption or transfer by the tenant is done within the tenant’s dwelling unit and is not visible

from outside of the individual residential dwelling unit. A landlord may prohibit the consumption,

display, and transfer of cannabis by a roomer as defined in § 34-18-11 and by any other person who

is not a tenant.

     21-28.11-12. Unlawful distribution to minors; penalties.

     (a) Except as expressly provided in chapter28.6 of title 21 of the general laws, no person

or entity shall sell, deliver or otherwise transfer to any person who is under twenty-one (21) years

of age marijuana, marijuana plants or marijuana products.

     (b) Any person or entity who sells, delivers or otherwise transfers marijuana, marijuana

plants or marijuana products to any person who is under twenty-one (21) years of age violation of

this chapter and chapter 28.12 of title 21 and/or the regulations promulgated hereunder shall be

subject to imposition of an administrative penalty by the office of cannabis regulation in the amount

of $10,000 per violation.

     (c) As to any violation of this section, such person, and in the case of an entity such entity’s

principal officers and other key persons, shall also be guilty of a felony, and upon conviction shall

be punished by imprisonment and a fine as provided in chapter 28 of title 21 of the general laws

and the attorney general shall prosecute such criminal violation.

     21-28.11-13. Unlawful marijuana extraction, penalties.

     (a) No person, other than a licensee who is authorized to process marijuana pursuant to

a license under chapter 28.12 of title 21 and who is in compliance with this chapter, chapter 28.12

and accompanying regulations or an agent of such licensee acting in that capacity, may extract

compounds from marijuana using solvents other than water, glycerin, propylene glycol, vegetable

oil, or food grade ethanol (ethyl alcohol). No person may extract compounds from marijuana using

ethanol in the presence or vicinity of open flame.

     (b) A person who violates this section shall be subject to imposition of an administrative

penalty by the office of cannabis regulation of up to five thousand dollars ($5,000) per violation.

     (c) A person who violates this section shall also be guilty of a felony punishable by imprisonment

and a fine in accordance with chapter 28 of title 21 of the general laws and the attorney general shall

prosecute such criminal violation.

     21-28.11-14. Medical marijuana program parity.

     (a) No later than April 1, 2023, the department of business regulation shall, in collaboration

with the department of health and the office of management and budget, conduct and deliver to the

Governor, the Speaker of the House of Representatives, and the President of the Senate a study

relating to the impact of the implementation of adult use cannabis in Rhode Island on the existing

medical marijuana program (MMP) established pursuant to chapter 28.6 of title 21. This study shall

examine and make recommendations relating to, without limitation, the following:

     (b) The extent to which the introduction of adult use cannabis has diminished or eliminated

the availability of certain medical marijuana products or product types;

     (c) The extent to which patient cardholders in Rhode Island have experienced new or

greater obstacles to obtaining medical marijuana, including on the basis of price, quantity, product

type, or geographic location;

     (d) The extent to which the number of caregiver registrations and/or the number of plant

tag certificates issued by the office of cannabis regulation increases or decreases; and

     (e) The extent to which the introduction of the new adult use cannabis tax and license fee

structure requires a realignment of the existing medical marijuana tax and license fee structure.

     (f) Any recommendations delivered to the Governor pursuant to this study shall be

considered by the Governor, the department, and the office of management and budget in the

development of the act proposing appropriations for the fiscal year beginning July 1, 2024.

CHAPTER 28.12

MARIJUANA REGULATION, CONTROL, AND TAXATION ACT

     21-28.12-1. Short title.

     This chapter shall be known and may be cited as the "Marijuana Regulation, Control, and

Taxation Act."

     21-28.12-2. Definitions.

     For purposes of this chapter:

     (1) “Adult use marijuana cultivator” means an entity that holds a license to cultivate

marijuana pursuant to chapter 28.12 of title 21 and in accordance with regulations promulgated by

the office of cannabis regulation and includes a hybrid marijuana cultivator.

     (2) "Adult use marijuana retailer" means an entity that holds a license to sell marijuana

at retail pursuant to chapter 28.12 of title 21 and in accordance with regulations promulgated by

the office of cannabis regulation and includes a hybrid marijuana retailer.

     (3) “Cannabis” means all parts of the plant of the genus marijuana, also known as marijuana

sativa L, whether growing or not; the seeds thereof; the resin extracted from any part of the

plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its

seeds, or resin regardless of cannabinoid content or cannabinoid potency including “marijuana”, and

“industrial hemp” or “industrial hemp products” which satisfy the requirements of chapter 26 of

title 2 of the general laws and the regulations promulgated thereunder.

     (4) "Equivalent amount" means the portion of usable marijuana, be it in extracted, edible,

concentrated, or any other form, found to be equal to a portion of dried marijuana, as defined by

regulations promulgated by the office of cannabis regulation.

     (5) "Hybrid marijuana cultivator" means an entity that holds a medical marijuana

cultivator license pursuant to chapter 28.6 of title 21 that also holds a license to cultivate marijuana

pursuant to chapter 28.12 of title 21 and in accordance with regulations promulgated by the office

of cannabis regulation.

     (6) "Hybrid marijuana retailer" means an entity that holds a medical marijuana

compassion center license pursuant to chapter 28.6 of title 21 that also holds a license to sell

marijuana at retail pursuant to chapter 28.12 of title 21 and in accordance with regulations

promulgated by the office of cannabis regulation.

     (7) "Marijuana" means all parts of the plant cannabis sativa L., whether growing or not;

the seeds of the plant; the resin extracted from any part of the plant; and every compound,

manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin, but shall not

include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the

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

mature stalks, (except the resin extracted from it), fiber, oil or cake, or the sterilized seed from the

plant which is incapable of germination. Marijuana shall not include “industrial hemp or” industrial

hemp products” which satisfy the requirements of chapter 2-26 of the general laws and the

regulations promulgated thereunder.

     (8) "Marijuana establishment" and “marijuana establishment licensee” means any person or

entity licensed by the office of cannabis regulation under this chapter or chapter 21-28.6 whose

license permits it to engage in or conduct activities in connection with the adult use marijuana

industry or medical marijuana program and includes but is not limited to a licensed adult use

marijuana retailer, marijuana testing facility, adult use marijuana cultivator, hybrid marijuana retailer,

hybrid marijuana cultivator, compassion center, medical marijuana cultivator or any other license issued by

the office of cannabis regulation under this chapter or chapter 28.6 of title 21 and/or as specified and defined

in regulations promulgated by the office of cannabis regulation.

     (9) "Marijuana paraphernalia" means equipment, products, and materials which are

used or intended for use in planting, propagating, cultivating, growing, harvesting,

manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing,

packaging, repackaging, storing, containing, concealing, ingesting, or inhaling marijuana, or

otherwise introducing marijuana into the human body.

     (10) "Marijuana products" means any form of marijuana, including concentrated marijuana

and products that are comprised of marijuana and other ingredients that are intended for use or

consumption, such as, but not limited to, extracts, infusions, edible products, ointments, and tinctures,

as further defined in regulations promulgated by the office of cannabis regulation.

     (11) "Marijuana testing facility" or “cannabis testing laboratory” means a third-party analytical

testing laboratory licensed by the departments of health and office of cannabis regulation to collect

and test samples of cannabis pursuant to regulations promulgated by the departments.

     (12) "Smoke" or "smoking" means heating to at least the point of combustion, causing plant

material to burn, inhaling, exhaling, burning, or carrying any lighted or heated cigarette, pipe, weed, plant,

other marijuana product in any manner or in any form intended for inhalation in any manner or form and

includes but is not limited to the use of electronic cigarettes, electronic pipes, electronic marijuana delivery

system products, or other similar products that rely on vaporization or aerosolization.

     (13) "State prosecution” means prosecution initiated or maintained by the state of Rhode

Island or an agency or political subdivision of the state of Rhode Island.

     (14) “Vaporize” or “vape” means heating below the point of combustion and resulting in a

vapor or mist.

     21-28.12-3. Office of Cannabis Regulation.

     (a) The office of cannabis regulation within the department of business regulation shall

oversee the regulation, licensing and control of cannabis, including marijuana, medical marijuana

and industrial hemp, and such other matters within the jurisdiction of the department as determined

by the director. The head of the office shall serve as the chief of the office of cannabis regulation.

The chief shall be the executive and administrative head of the office and shall be responsible for

administering and enforcing the laws and regulations relating to cannabis in the state of Rhode

Island.

     (b) Whenever in chapter 26 of title 2, and chapters 28.6, 28.11, and 28.12 of title 21and

chapter 49.1 of title 44 of the general laws the words “department of business regulation” shall

appear, the words shall be deemed to mean the office of cannabis regulation within the department

of business regulation. Whenever in chapter 26 of title 2, and chapters 28.6, 28.11, and 28.12 of

title 21 and chapter 49.1 of title 44 of the general laws the words “office of cannabis regulation”

shall appear, the words shall be deemed to mean the office of cannabis regulation within the

department of business regulation.

     (c) The office of cannabis regulation shall coordinate the executive branch response to

the regulation and control of cannabis including, but not limited to, strategic planning,

coordination and approval of regulations, educational content, planning and

implementation, community engagement, budget coordination, data collection and analysis

functions, and any other duties deemed necessary and appropriate by the office of cannabis

regulation to carry out the provisions of this chapter.

     (d) In furtherance of coordinating the oversight of cannabis, including marijuana, medical

marijuana and industrial hemp, across state agencies, the office of cannabis regulation shall:

     (1) Coordinate with the staff designated by the respective directors of each state agency

regarding the agency's promulgation and implementation of rules and regulations regarding adult use

of marijuana, medical marijuana and industrial hemp with the objective of producing positive

economic, public safety, and health outcomes for the state and its citizens;

     (2) Offer guidance to and communicate with municipal officials regarding the

implementation and enforcement of this chapter and chapters 28.6 and 28.11;

     (3) Align all policy objectives and the promulgation of rules and regulations across state

agencies to increase efficiency and eliminate unintended negative impacts on the state and its

citizens;

     (4) Communicate with regulatory officials from other states that allow marijuana for adult use,

medical marijuana use and industrial hemp production to learn from the experiences of those states;

     (5) Anticipate, prioritize, and respond to emerging issues with the regulation of marijuana;

     (6) Coordinate the collection of data on adult use of marijuana and medical marijuana use from

state agencies and report to the governor and legislature no later than April 1, 2023, and every year

thereafter. The report shall include, but is not limited to:

     (i) The number and geographic distribution of all licensed marijuana establishments;

     (ii) Data on the total amount of sales of marijuana and the total amount of revenue raised

from taxes and fees levied on marijuana;

     (iii) Projected estimate of the total marijuana revenue that will be raised in the proceeding

year;

     (iv) The distribution of funds to programs and agencies from revenue raised from fees and

taxes levied on marijuana; and

     (v) Any findings from the departments of health and public safety related to changes in

marijuana use rates and the impact, if any, of marijuana use on public health and public safety.

     21-28.12-4. Governor’s Cannabis Reinvestment Task Force.

     (a) There is hereby created the Governor’s Cannabis Reinvestment Task Force, members

of which shall be appointed by and serve at the pleasure of the Governor. There shall be fifteen

(15) members, with eight (8) members constituting a quorum. The members shall serve for an initial

term of one (1) year and may be reappointed for an additional period of one (1) year. The members

shall serve on the task force without compensation.

     (b) The task force shall be co-chaired by the Director of the Department of Business

Regulation or her or his designee and the Secretary of the Executive Office of Health and Human

Services or her or his designee and shall also include the Directors of the Departments of Health,

Labor and Training, Public Safety, and the President of the Rhode Island Commerce Corporation,

or their designees.

     (c) The task force shall further consist of, but not be limited to, representatives of municipal

government, faith-based organizations, Rhode Island-based community development corporations

(CDCs), industry associations, small business owners, and at least two (2) members of the Rhode

Island cannabis industry, including at least one (1) representative of a licensed compassion center

and one (1) representative of a licensed cultivator. No later than July 1, 2022, the task force shall

present recommendations to the office of cannabis regulation and the office of management and

budget specifically relating to the long-term reinvestment of adult use cannabis revenues in existing

or new programs or initiatives which shall include, but not be limited to: job training, small business

access to capital, affordable housing, health equity, and neighborhood and community

development. These recommendations shall contemplate an overall proportion of cannabis

revenues to be reinvested in these targeted areas, and shall be made with a specific focus on racial

equity, worker and family economic empowerment, the disproportionate impact of cannabis-related

law enforcement policies and procedures, and structural barriers to participation in Rhode Island’s

cannabis industry.

     (d) All meetings of the task force shall be open meetings and all records of the task force

shall be public records. The office of cannabis regulation, the office of management and budget,

and the executive office of health and human services shall provide administrative support to the

task force as needed.

     21-28.12-5. Licensed retailers. 

     (a) The department of business regulations shall accept applications for adult use marijuana

retailer licenses on an annual basis according to the following methodology:

     (1) During the 12-month period beginning July 1, 2021, the department of business

regulation shall establish and open a first application period, the duration of which shall be

determined by the department, during which the department will accept applications for twenty-

five (25) adult use marijuana retailer licenses;

     (2) During the 12-month period beginning July 1, 2022, the department of business

regulation shall establish and open a second application period, the duration of which shall be

determined by the department, during which the department will accept applications for an

additional twenty-five (25) adult use marijuana retailer licenses;

     (3) During the 12-month period beginning July 1, 2023, the department of business

regulation shall establish and open a third application period, the duration of which shall be

determined by the department, during which the department will accept applications for an

additional twenty-five (25) adult use marijuana retail licenses; such that by June 30, 2024, the

department will have awarded or issued preliminary approval for no more than seventy-five (75)

adult use retail licenses;

     (b) Beginning July 1, 2024, and for the years that follow, the department may make

additional retail adult use cannabis licenses available based on market factors including, but not

limited to, the findings of a market demand study conducted pursuant to § 21-28.12-18, and taking

into consideration the impact of said additional licenses on public health and safety.

     (c) Excluding applications for hybrid marijuana retailer licenses as described in subsection

(f), to the extent that the total number of qualifying applications for retail licenses received during

any application period exceeds the number of licenses made available by the department pursuant

to this section, the department shall award the licenses to qualifying applicants selected by way of

a randomized lottery in accordance with rules and regulations promulgated by the department,

provided in no case shall the number of licenses awarded to qualifying minority business

enterprises, as defined in chapter 14.1 of title 37 and regulations promulgated thereunder, be fewer

than five (5) or twenty percent (20%) of the total number of licenses awarded on an annual basis,

whichever is greater.

     (d) By January 1, 2023, the department of business regulation shall conduct a disparity

study examining the extent to which minority-owned businesses have been able to participate in

the adult use cannabis market in Rhode Island, and may recommend revisions to the ratio set forth

in subsection (c) as needed based on the findings of this study.

     (e) The departments of administration and business regulation are hereby authorized to

jointly promulgate additional rules and regulations as needed to clarify and implement the process

of certification as a minority business enterprise for the purposes of this section.

     (f) In addition to the adult use marijuana retailer licenses issued pursuant to subsection (a),

any person or entity to whom the department of business regulation has issued a compassion center

license or conditional compassion center application approval as of the date the department’s

opening of the application period, and who is in good standing with the department pursuant to

chapter 28.6 of title 21 may apply for and shall be issued a hybrid marijuana retailer license during

the first application period, provided that any such applicant is in compliance with all applicable

regulations and demonstrates to the satisfaction of the department in accordance with regulations

promulgated hereunder that the applicant’s proposed adult use licensure will have no adverse effect

on the medical marijuana program market and patient need. The department may deny an

application that fails to make this demonstration and/or may impose restrictions and conditions to

licensure as it deems appropriate to ensure no adverse effect on the medical marijuana program

market and patient needs. A hybrid marijuana retailer licensee must maintain its compassion center

license in good standing as a condition to licensure for its hybrid marijuana retailer license.

     (g) An adult use marijuana retailer licensed under this section may acquire marijuana and

marijuana products from licensed hybrid marijuana cultivators and other licensed marijuana

establishments in accordance with regulations promulgated by department of business regulation,

and possess, deliver, transfer, transport, supply and sell at retail marijuana, marijuana products and

marijuana paraphernalia to persons who are twenty-one (21) years of age or older in accordance

with the provisions of chapters 28.11 and 28.12 of title 21 and the regulations promulgated by the

department of business regulation. A licensed adult use marijuana retailer shall not be a primary

caregiver cardholder and shall not hold a cooperative cultivation license. A licensed adult use

marijuana retailer shall not hold an adult use marijuana cultivator license and shall not grow or

cultivate marijuana except to the extent the adult use marijuana retailer is licensed as a hybrid

marijuana retailer issued to a compassion center that has been approved for cultivation of marijuana

pursuant to such compassion center license. The department of business regulation may restrict the

number, types, and classes of adult use marijuana licenses an applicant may be issued through

regulations promulgated by the department.

     (h)  The department of business regulation may promulgate regulations governing the

manner in which it shall consider applications for the licensing of adult use marijuana retailers and

registration of all of its owners, officers, directors, managers, members, partners, employees, and

agents, including but not limited to regulations governing:

     (1) The form and content of licensing and renewal applications, including, without

limitation, required submission materials upon which the department shall determine suitability of

an applicant;

     (2) Minimum oversight requirements for licensed adult use marijuana retailers;

     (3) Minimum record-keeping requirements for adult use marijuana retailers;

     (4) Minimum insurance requirements for adult use marijuana retailers;

     (5) Minimum security requirements for adult use marijuana retailers; and

     (6) Procedures for suspending, revoking, or terminating the license of adult use marijuana

retailers that violate any provisions of this chapter or the regulations promulgated hereunder.

     (7) Applicable application and license fees.

     (i) The license issued by the department of business regulation to an adult use marijuana

retailer and the registration issued to each of its owners, officers, directors, managers, members,

partners, employees and agents shall expire one (1) year after it was issued and the licensee may

apply for renewal with the department in accordance with its regulations pertaining to licensed

adult use marijuana retailers.

     (j) The department of business regulation may promulgate regulations that govern how

much marijuana a licensed adult use marijuana retailer may possess. All marijuana acquired,

possessed and sold by a licensed adult use marijuana retailer must be catalogued in a seed to sale

inventory tracking system in accordance with regulations promulgated by the department of

business regulation.

     (k) Adult use marijuana retailers shall only sell marijuana, marijuana products and

marijuana paraphernalia at retail to persons twenty-one (21) years of age or older in accordance

with chapters 28.11 and 28.12 of title 21 and the regulations promulgated by the department of

business regulation thereunder.  Adult use marijuana retailers shall not sell any other products

except as otherwise permitted in regulations promulgated by the department of business regulation.

The department may suspend and/or revoke the adult use marijuana retailer's license and the

registration of any owner, officer, director, manager, member, partner, employee, or agent of such

adult use marijuana retailer and/or impose an administrative penalty in accordance with such

regulations promulgated by the department for any violation of chapters 28.11 or 28.12 of title 21

or the regulations promulgated thereunder. In addition, any violation of chapters 28.11 or 28.12 of

title 21 or the regulations promulgated pursuant to this subsection and subsection (h) shall cause a

licensed adult use marijuana retailer to lose the protections described in § 21-28.11-4(2) and may

subject the licensed adult use marijuana retailer and its owners, officers, directors, managers,

members, partners, employees, and agents to arrest and prosecution under Chapter 28 of title 21

(the Rhode Island Controlled Substances Act).

     (l) Adult use marijuana retailers shall be subject to any regulations promulgated by the

department of health or department of business regulation that specify how marijuana must be

tested for items, including, but not limited to, potency, cannabinoid profile, and contaminants;

     (m) Adult use marijuana retailers shall be subject to any product labeling requirements

promulgated by the department of business regulation and the department of health;

     (n) Adult use marijuana retailers shall only be licensed to possess and sell marijuana,

marijuana products and marijuana paraphernalia at the location(s) set forth in its adult use

marijuana retailer license and registered with the department of business regulation and the

department of public safety. The department of business regulation may promulgate regulations

governing the department’s approval of locations where adult use marijuana retailers are allowed

to operate. Adult use marijuana retailers must abide by all local ordinances, including zoning

ordinances.

     (o) Adult use marijuana retailers shall be subject to inspection and audit by the department

of business regulation or the department of health for the purposes of enforcing regulations

promulgated pursuant to this chapter and all applicable Rhode Island general laws.

     (p) An adult use marijuana retailer applicant, unless they are an employee with no equity,

ownership, financial interest, or managing control, shall apply to the bureau of criminal

identification of the department of attorney general, department of public safety division of state

police, or local police department for a national criminal records check that shall include

fingerprints submitted to the Federal Bureau of Investigation. Upon the discovery of any

disqualifying information as defined in subdivision (p)(2), and in accordance with the rules

promulgated by the director of the department of business regulation, the bureau of criminal

identification of the department of attorney general, department of public safety division of state

police, or the local police department shall inform the applicant, in writing, of the nature of the

disqualifying information; and, without disclosing the nature of the disqualifying information, shall

notify the department of business regulation, in writing, that disqualifying information has been

discovered.

     (1) In those situations in which no disqualifying information has been found, the bureau of

criminal identification of the department of attorney general, department of public safety division

of state police, or the local police department shall inform the applicant and the department of

business regulation, in writing, of this fact.

     (2) Information produced by a national criminal records check pertaining to a conviction

for a felony drug offense or a plea of nolo contendere for a felony drug offense and received a

sentence of probation shall result in a letter to the applicant and the department of business

regulation disqualifying the applicant.

     (3) The adult use marijuana retailer applicant shall be responsible for any expense

associated with the national criminal records check.

     (q) Persons issued adult use marijuana retailer licenses or registration cards shall be subject

to the following:

     (1) A licensed adult use marijuana retailer cardholder shall notify and request approval

from the department of business regulation of any change in his or her name or address within ten

(10) days of such change. An adult use marijuana retailer cardholder who fails to notify the

department of business regulation of any of these changes is responsible for a civil infraction,

punishable by a fine of no more than one hundred fifty dollars ($150).

     (2) When a licensed adult use marijuana retailer cardholder notifies the department of

business regulation of any changes listed in this subsection, the department of business regulation

shall issue the adult use marijuana retailer cardholder a new license or registry identification card

after the department approves the changes and receives from the licensee payment of a fee specified

in regulation.

     (3) If a licensed adult use marijuana retailer cardholder loses his or her registry

identification card, he or she shall notify the department of business regulation and submit a fee

specified in regulation within ten (10) days of losing the registry identification card. The department

of business regulation shall issue a new registry identification card with a new random

identification number.

     (4) A licensed adult use marijuana retailer cardholder shall notify the department of

business regulation of any disqualifying criminal convictions as defined in subsection (p)(2). The

department of business regulation may choose to suspend and/or revoke his or her card after such

notification.

     (5) If a licensed adult use marijuana retailer or adult use marijuana retailer cardholder

violates any provision of this chapter or regulations promulgated hereunder as determined by the

department of business regulation, his or her card or the issued license may be suspended and/or

revoked.

     (r) No person or entity shall engage in activities described in this § 21-28.12-5 without an

adult use marijuana retailer license issued by the department of business regulation in accordance

with chapters 28.11 and 28.12 of title 21 and regulations promulgated thereunder by the department

of business regulation.

     21-28.12-6 Licensed cultivators. 

     (a) On or after July 1, 2021, the department of business regulation shall establish and open

an application period during which it will accept applications for adult use marijuana cultivator

licenses. The duration of the application period, the number and class of adult use marijuana

licenses and the method of selection shall be determined in accordance with regulations

promulgated by the department of business regulation taking into consideration market demand

and the impact of said additional licenses on public health and safety.

      (b) A medical marijuana cultivator licensed and in good standing with the department of

business regulation as of the opening of the application period may apply for and shall be issued a

hybrid marijuana cultivator license under this section, provided that a medical marijuana cultivator

licensee who applies for a hybrid marijuana cultivator license will be required to demonstrate to

the satisfaction of the department of business regulation in accordance with regulations

promulgated hereunder that the applicant’s proposed adult use licensure will have no adverse effect

on the medical marijuana program market and patient need. The department of business regulation

may deny an application that fails to make this demonstration and/or may impose restrictions and

conditions to licensure as it deems appropriate to ensure no adverse effect on the medical marijuana

program market and patient needs. A licensed hybrid marijuana cultivator must maintain its

medical marijuana cultivator license in good standing as a condition to licensure for it hybrid

marijuana cultivator license.

     (c) An adult use marijuana cultivator licensed pursuant to this section shall be authorized

to acquire, possess, cultivate, package, process, manufacture and transfer marijuana and marijuana

products, in accordance with chapters 28.11 and 28.12 of title 21 and regulations promulgated by

the department of business regulation, and may sell, deliver, or transfer marijuana and marijuana

products to adult use marijuana retailers, a cannabis testing laboratory, or another marijuana

establishment licensee in accordance with regulations promulgated by the department of business

regulation. A licensed cultivator shall not be a primary caregiver cardholder and shall not hold a

cooperative cultivation license. A licensed adult use marijuana cultivator shall not sell, deliver, or

transfer marijuana or marijuana products to a compassion center licensed under chapter 28.6 of title

21 except to the extent that the adult use marijuana cultivator is licensed as a hybrid cultivator

issued to a medical marijuana cultivator licensed and in good standing with the department of

business regulation and in accordance with the applicable regulations. A licensed adult use

marijuana cultivator shall not sell marijuana or marijuana products at retail or otherwise to the

general public. The department of business regulation may restrict the number, types, and classes

of adult use marijuana establishment licenses an applicant may be issued through regulations

promulgated by the department.

     (d) The department of business regulation may promulgate regulations governing the

manner in which it shall consider applications for the licensing of adult use marijuana cultivators,

including but not limited to regulations governing:

     (1) The form and content of licensing and renewal applications;

     (2) Minimum oversight requirements for licensed adult use marijuana cultivators;

     (3) Minimum record-keeping requirements for adult use marijuana cultivators;

     (4) Minimum insurance requirements for adult use marijuana cultivators;

     (5) Minimum security requirements for adult use marijuana cultivators; and

     (6) Procedures for suspending, revoking, or terminating the license of adult use marijuana

cultivators that violate any provisions of this chapter or the regulations promulgated hereunder.

     (7) Applicable application and license fees.

     (e) A adult use marijuana cultivator license issued by the department of business regulation

shall expire one (1) years after it was issued and the licensed hybrid marijuana cultivator may apply

for renewal with the department in accordance with its regulations pertaining to licensed adult use

marijuana cultivators.

     (f) The department of business regulation may promulgate regulations that govern how

much marijuana a licensed adult use marijuana cultivator may cultivate and possess. All marijuana

possessed by a licensed adult use marijuana cultivator must be catalogued in a seed to sale inventory

tracking system in accordance with regulations promulgated by the department of business

regulation.

     (g) Adult use marijuana cultivators shall only sell marijuana and marijuana products to

adult use marijuana retailers or another licensed marijuana establishment licensee in accordance

with regulations promulgated by the department of business regulation.  The department may

suspend and/or revoke the adult use marijuana cultivator’s license and the registration of any owner,

officer, director, manager, member, partner, employee, or agent of such adult use marijuana

cultivator and/or impose an administrative penalty in accordance with such regulations

promulgated by the department for any violation of this section or the regulations. In addition, any

violation of this section or the regulations promulgated pursuant to this subsection and subsection

(f) shall cause a licensed adult use marijuana cultivator to lose the protections described in § 21-

28.11-4(3) and may subject the licensed adult use marijuana cultivator and its owners, officers,

directors, managers, members, partners, employees, or agents to arrest and prosecution under

chapter 28 of title 21 (the Rhode Island Controlled Substances Act).

     (h) Adult use marijuana cultivators shall be subject to any regulations promulgated by the

department of health or department of business regulation for marijuana testing, including, but not

limited to, potency, cannabinoid profile, and contaminants;

     (i) Adult use marijuana cultivators shall be subject to any product packaging and labeling

requirements promulgated by the department of business regulation and the department of health;

     (j) Adult use marijuana cultivators shall only be licensed to cultivate and process marijuana

at a single location, registered with the department of business regulation and the department of

public safety provided that a hybrid marijuana cultivator licensee whose hybrid license and medical

marijuana cultivator license under chapter 28.6 of title 21 is in good standing may cultivate and

process adult use marijuana at an additional location that is separate from its original licensed

premises if approved in accordance with regulations adopted by the department of business

regulation. Adult use marijuana cultivators must abide by all local ordinances, including zoning

ordinances.

     (k) Adult use marijuana cultivators shall be subject to reasonable inspection by the

department of business regulation and the department of health for the purposes of enforcing

regulations promulgated pursuant to this chapter and all applicable Rhode Island general laws.

     (l) A adult use marijuana cultivator applicant, unless they are an employee with no equity,

ownership, financial interest, or managing control, shall apply to the bureau of criminal

identification of the department of attorney general, department of public safety division of state

police, or local police department for a national criminal records check that shall include

fingerprints submitted to the Federal Bureau of Investigation. Upon the discovery of any

disqualifying information as defined in subdivision (l)(2), and in accordance with the rules

promulgated by the director of the department of business regulation, the bureau of criminal

identification of the department of attorney general, department of public safety division of state

police, or the local police department shall inform the applicant, in writing, of the nature of the

disqualifying information; and, without disclosing the nature of the disqualifying information, shall

notify the department of business regulation, in writing, that disqualifying information has been

discovered.

     (1) Where no disqualifying information has been found, the bureau of criminal

identification of the department of attorney general, department of public safety division of state

police, or the local police department shall inform the applicant and the department of business

regulation, in writing, of this fact.

     (2) Information produced by a national criminal records check pertaining to a conviction

for a felony drug offense or a plea of nolo contendere for a felony drug offense and received a

sentence of probation shall result in a letter to the applicant and the department of business

regulation disqualifying the applicant.

     (3) An adult use marijuana cultivator applicant shall be responsible for any expense

associated with the national criminal records check.

     (m) Persons issued adult use marijuana cultivator licenses or registration cards shall be

subject to the following:

     (1) A licensed hybrid marijuana cultivator cardholder shall notify and request approval

from the department of business regulation of any change in his or her name or address within ten

(10) days of such change. An adult use marijuana cultivator cardholder who fails to notify the

department of business regulation of any of these changes is responsible for a civil infraction,

punishable by a fine of no more than one hundred fifty dollars ($150).

     (2) When a licensed adult use marijuana cultivator cardholder notifies the department of

business regulation of any changes listed in this subsection, the department of business regulation

shall issue the adult use marijuana cultivator cardholder a new license or registry identification card