2026 -- H 7410

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LC004455

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2026

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A N   A C T

RELATING TO FOOD AND DRUGS -- THE RHODE ISLAND CANNABIS ACT

     Introduced By: Representative Scott Slater

     Date Introduced: January 30, 2026

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 21-28.11-3, 21-28.11-7, 21-28.11-9, 21-28.11-10.2 and 21-28.11-

11 of the General Laws in Chapter 21-28.11 entitled "The Rhode Island Cannabis Act" are hereby

amended to read as follows:

     21-28.11-3. Definitions.

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

following meanings:

     (1) “Administrator” means the administrator of the cannabis office appointed by the

governor pursuant to the provisions of § 21-28.11-18.1.

     (2) “Adult use cannabis” or “recreational cannabis” means cannabis which may be legally

possessed and consumed for non-medical purposes by a person who is at least twenty-one (21)

years of age.

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

of business located in Rhode Island to include, person or business entity including, but not limited

to, a corporation, limited liability company, limited liability partnership or partnership, and in

which fifty-one percent (51%) of the equity in the business entity is owned by residents of Rhode

Island, and the Rhode Island resident or business entity who has made application for issuance of

a license or certificate to own or engage in a cannabis business subject to the provisions of this

chapter.

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

medical and psychotropic effects.

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

delta-9-tetrahydrocannabinol, cannabidiol, tetrahydrocannabinolic acid and cannabidiolic acid in a

cannabis product. Amounts of other cannabinoids may be regulated by the commission.

     (6) “Cannabis” or “marijuana” or “marihuana” means all parts of any plant of the genus

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

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

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

“cannabis” shall not include:

     (i) 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

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

plant that is incapable of germination;

     (ii) Hemp; or

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

administrations, food, drink or other products.

     (7) “Cannabis accessories” or “marijuana accessories” means equipment, products, devices

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

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

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

introducing cannabis into the human body.

     (8) “Cannabis advisory board” or “advisory board” means the cannabis advisory board

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

     (9) “Cannabis concentrate” means the resin extracted from any part of the plant of the

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

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

cannabis products.

     (10) “Cannabis control commission” or “commission” means the Rhode Island cannabis

control commission established by § 21-28.11-4.

     (11) “Cannabis cultivator” or “marijuana cultivator” means an entity licensed to cultivate,

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

cannabis to other cannabis establishments, but not to consumers.

     (12) “Cannabis establishment” or “marijuana establishment” means a cannabis cultivator,

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

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

     (13) “Cannabis office” means the office established pursuant to § 21-28.11-18.1.

     (14) “Cannabis product manufacturer” or “marijuana product manufacturer”' means an

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

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

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

     (15) “Cannabis products” or “marijuana products” means products that have been

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

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

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

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

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

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

and to consumers.

     (17) “Cannabis testing laboratory’' means a third-party analytical testing laboratory that is

licensed annually by the commission, in consultation with the department of health, to collect and

test samples of cannabis and cannabis products pursuant to regulations issued by the commission

and is:

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

cannabis establishment for which it conducts a test; and

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

commission pursuant to this chapter. The term includes, but is not limited to, a cannabis testing

laboratory as provided in § 21-28.11-11.

     (18) “Chairperson” means the chairperson of the cannabis control commission established

pursuant to § 21-28.11-4.

     (19) “Close associate” means a person who holds a legally recognized financial interest in,

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

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

cannabis establishment licensed under this chapter.

     (20) “Consumer” means a person who is at least twenty-one (21) years of age, and who is

authorized by law to consume or use cannabis.

     (21) “Controlling person” means an officer, board member or other individual who has a

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

     (22) “Cultivation batch” means a collection of cannabis plants from the same seed or plant

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

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

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

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

production tracking, product labeling and product recalls.

     (23) “Disproportionately impacted area” means a census tract or comparable geographic

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

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

federal decennial census;

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

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

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

the Supplemental Nutrition Assistance Program (SNAP);

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

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

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

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

     (v)(A) The area has disproportionately high rates of arrest, conviction, and incarceration

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

comparison to other communities and localities in the state; or

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

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

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

time period, when compared to the remainder of the state.

     (vi) The commission shall, with recommendations from the cannabis advisory board and

the chief equity officer, issue guidelines to determine how to assess which communities have been

disproportionately impacted and how to assess if someone is a member of a community

disproportionately impacted.

     (24) “Final issuance of the commission’s rules and regulations” means the rules and

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

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

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

instructions or procedures.

     (25) “Finished cannabis” means a usable cannabis, cannabis resin or cannabis concentrate.

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     (26) “Hemp” means the plant of the genus cannabis or any part of the plant, whether

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

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

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

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

content.

     (27) “Host community” means a municipality in which a cannabis establishment or a

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

cannabis establishment or a medical cannabis treatment center.

     (28) “Hybrid cannabis retailer” or “hybrid compassion center” means a compassion center

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

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

medical or adult use cannabis to consumers.

     (29) “Laboratory agent” means a registered employee of a cannabis testing laboratory who

transports, possesses or tests cannabis.

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

provisions of this chapter. Any business structure recognized under title 7, including, but not limited

to, corporations, partnerships, limited partnerships, limited-liability companies, and workers’

cooperatives, which is otherwise qualified, is eligible to be considered by the commission as an

entity licensee.

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

prepare a cannabis product.

     (32) “Medical cannabis” means cannabis and cannabis products that satisfy the

requirements of chapter 28.6 of this title and have been given the designation of “medical cannabis”

or “medical marijuana” due to dose, potency and form. Medical cannabis 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 chapter 28.6

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

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

     (33) “Medical cannabis treatment center” or “Medical marijuana treatment center” includes

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

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

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

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

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

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

     (35) “Ownership and control” means ownership of at least fifty-one percent (51%) of the

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

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

establishment proportionate to percentage of ownership.

     (36) “Process” or “processing” means to harvest, dry, cure, trim and separate parts of the

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

in this section.

     (37) “Production batch” means a batch of finished plant material, cannabis resin, cannabis

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

and ingredients. The commission shall require licensees to assign and record a unique, sequential

alphanumeric identifier to each production batch for the purposes of production tracking, product

labeling and product recalls. All production batches shall be traceable to one or more cannabis

cultivation batches.

     (38) “Residual solvent” means a volatile organic chemical used in the manufacture of a

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

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

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

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

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

of the last ten (10) years, as determined by the commission after consultation with the cannabis

advisory board, and further specified in the rules and regulations that shall identify factors and other

considerations to be evaluated in certifying applicants as social equity applicants, provided that

such applicants shall at a minimum meet one of the following criteria:

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

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

disproportionately impacted area.

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

more individuals who:

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

eligible for expungement under this chapter; or

     (B) Is a member of an impacted family.

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

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

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

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

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

     (iv) Can demonstrate significant past experience in or business practices that promote

economic empowerment in disproportionally impacted areas.

     (v) Had income which does not exceed four hundred percent (400%) of the median income,

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

ten (10) years.

     (40) “Terpenoid” means an isoprene that are the aromatic compounds found in cannabis,

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

caryophyllene, caryophyllene oxide, nerolidol and phytol.

     (41) “Unreasonable and impracticable” means that the measures necessary to comply with

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

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

prudent businessperson would not operate a cannabis establishment.

     (42) “Workers’ cooperative” means an applicant organized and operated pursuant to the

provisions of chapter 6.2 of title 7.

     21-28.11-7. Licensed cannabis cultivators.

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

28.11-8, there shall be a moratorium on the issuance of new cannabis cultivator licenses until the

date that is two (2) years following the final issuance of the commission’s rules and regulations

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

licensed pursuant to chapter 28.6 of this title on or before enactment of this chapter.

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

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

shall be permitted to cultivate, manufacture and process cannabis as a hybrid cannabis cultivator

for both adult use and medical use. The amount of the additional license fee shall be determined by

the office of cannabis regulation during the transitional period established by § 21-28.11-10 and

shall be subject to review by the commission pursuant to the final rules and regulations. The fee

shall be deposited in the social equity fund established in § 21-28.11-31. Sale of the cultivated

cannabis shall be made directly to a licensee pursuant to the provisions of this chapter and chapter

28.6 of this title, subject to the following conditions:

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

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the provisions of chapter 28.6 of this title; and

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

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

program and patient needs.

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

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

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

limited to:

     (1) Cultivation and production history;

     (2) Tax payment history;

     (3) Existing inventory and inventory history;

     (4) Sales contracts;

     (5) Current and future projected market conditions; and

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

inventory management for both medical and adult use cannabis.

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

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

new cultivator licensee’s canopy shall not exceed ten thousand square feet (10,000 ft2). In

determining whether to issue additional cultivator licenses, the cannabis control commission shall

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

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

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

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

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

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

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

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

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

used at any time to cultivate mature cannabis plants.

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

section, an applicant shall satisfy all requirements and qualifications established by the commission

to include but not limited to, the following:

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

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

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of the state proof of residency;

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

terms established by the commission;

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

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

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

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

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

pursuant to this chapter; and

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

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

equity fund established in § 21-28.11-31.

     (g) The commission may determine and adjust the application fee or annual license fee

pursuant to the commission’s rulemaking authority and in accordance with the provisions of chapter

35 of title 42.

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

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

seed-to-sale tracking system utilized pursuant to chapter 28.6 of this title and promulgate new or

additional regulations, as it deems appropriate. As of December 1, 2022, any cannabis tags issued

to provide seed-to-sale inventory and tracking shall be issued without charge to patient cardholders

and/or primary caregivers authorized to grow medical cannabis.

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

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

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

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

provisions of this chapter or chapter 28.6 of this title.

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

registered with and approved by the cannabis commission. The commission may promulgate

regulations governing locations where cultivators are authorized to grow. Cannabis cultivators shall

abide by all local ordinances, including zoning ordinances.

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

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

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

and the provisions of § 28-5.1-14.

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

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

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

cultivator who fails to notify the commission of any of these changes shall be subject to an

administrative fine of no more than one hundred fifty dollars ($150), or other penalty as determined

by the commission.

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

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

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

payment of a fee specified in regulations.

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

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

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

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

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

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

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

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

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

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

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

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

suspended and/or revoked.

     (n) Immunity.

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

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

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

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

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

regulations promulgated by the commission.

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

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

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

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

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

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

this title and rules and regulations promulgated by the commission.

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

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

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

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

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

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

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

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

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

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

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

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

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

chapter that has not first been tested by a cannabis testing laboratory and determined to meet the

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

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

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

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

or otherwise required by law.

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

without a cultivator license issued pursuant to this chapter.

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

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

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

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

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

this chapter or chapter 28.6 of this title. A cannabis product manufacturer’s licensee or processor

or wholesaler shall report to the commission, pursuant to regulations, the purchase or acquisition

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

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

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

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to the following:

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

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

of the state proof of residency;

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

terms established by the commission;

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

filings and payments for taxes with the division of taxation;

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

promulgated by rules and regulations; and

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

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

to be deposited in the social equity fund established in § 21-28.1-31.

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

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

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

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

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

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

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

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

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

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

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

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

chapter that has not first been tested by a cannabis testing laboratory and determined to meet the

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

     (h) Persons issued cannabis product manufacturer’s licenses shall be subject to the

following:

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

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

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

shall be subject to an administrative fine of no more than one hundred fifty dollars ($150) or other

penalty as determined by the commission.

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

listed in this subsection, the commission shall issue the licensed cannabis product manufacturer a

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

the licensee payment of a fee specified in regulation.

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

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

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

a new random identification number.

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

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

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

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

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

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

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

     (i) Immunity.

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

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

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

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

professional licensing board or entity, solely for acting in accordance with this chapter, chapter

28.6 of this title and rules and regulations promulgated by the commission.

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

cannabis product manufacturer or wholesaler shall be subject to arrest; prosecution; search or

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

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

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

or entity, solely for working for or with a licensed cannabis product manufacturer or wholesaler to

engage in acts permitted by this chapter, chapter 28.6 of this title or rules and regulations

promulgated by the commission.

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

or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (e)

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

to, civil penalty, disciplinary action, termination, or loss of employee or pension benefits, for any

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and all conduct that occurs within the scope of his or her employment regarding the administration,

execution, and/or enforcement of this chapter, chapter 28.6 of this title and rules and regulations

promulgated by the commission, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to

this section.

     21-28.11-10.2. Cannabis retail sales.

     (a) In addition to the hybrid cannabis retailer certificates that may be issued pursuant to the

provisions of this chapter, after issuance of the final rules and regulations, the commission may

grant twenty-four (24) retail licenses, subject to the following restrictions:

     (1) The retail licenses shall be issued pursuant to geographic zones as specified in § 21-

28.11-10.3.

     (2) No more than four (4) retail licenses exclusive of any hybrid cannabis retail certificate

shall be permitted in each geographic zone; and

     (3) Of the four (4) retail licenses in each geographic zone:

     (i) One shall be reserved for a workers’ cooperative applicant; and

     (ii) One shall be reserved for a social equity applicant.

     (b) Minimum qualifications. To qualify for issuance of a cannabis retail sales license

under this section, an applicant shall satisfy all qualifications established by the commission to

include, but not be limited to, the following:

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

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

of the state proof of residency;

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

terms established by the commission;

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

filings and payments for taxes with the division of taxation;

     (5) Demonstrate that the proposed location for the retail sale of cannabis complies with

provisions of municipal zoning and regulations or has been approved by the municipality;

     (6) Paid a nonrefundable application fee as determined by the commission and promulgated

by rules and regulations; and

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

an annual fee of thirty thousand dollars ($30,000) to be deposited in the social equity fund

established in § 21-28.11-31.

     (c) Compliance. A cannabis retail sales licensee and all agents and employees shall comply

with all rules adopted by the commission and all applicable laws to include, but not limited to,

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chapter 5 of title 28 (the “fair employment practices act”).

     (d) Inspection. As a condition of licensing and pursuant to § 21-28.11-20, cannabis

retailers shall consent and be subject to inspections by the commission or designated personnel for

the purposes of ensuring and enforcing compliance with this chapter, all rules and regulations

promulgated pursuant to this chapter and all other applicable law, to include, but not be limited to,

the provisions of title 44 (“taxation”), chapter 28 of this title (the “uniform controlled substance

act”), and chapter 5 of title 28 (the “fair employment practices act”).

     (e) Testing. No cannabis or cannabis product shall be sold or otherwise marketed pursuant

to this chapter that has not first been collected and tested by a cannabis testing laboratory and found

to meet the testing protocols issued pursuant to regulations promulgated by the department of health

and determined to meet the commission’s testing protocols issued pursuant to § 21-28.11-11.

     (f) Minimum requirements. Persons issued cannabis retail licenses shall be subject to the

following:

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

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

retailer who fails to notify the commission of any of these changes shall be subject to an

administrative fine of no more than one hundred fifty dollars ($150) or other penalty as determined

by the commission;

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

subsection, the commission shall issue the licensed cannabis retailer a new license identification

document after the commission approves the changes and receives from the licensee payment of a

fee specified in regulation;

     (3) If a licensed cannabis retailer loses his or her license document, he or she shall notify

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

document. The commission shall issue a new license document with a new random identification

number upon payment of a fee promulgated in the rules and regulations not to exceed one hundred

dollars ($100);

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

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

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

subject to the provisions § 21-28.11-12.1;

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

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

suspended and/or revoked.

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     (g) Immunity.

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

except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (d) of this

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

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

entity, solely for acting in accordance with this chapter and rules and regulations promulgated by

the commission.

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

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

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

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

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

or with a licensed cannabis retailer to engage in acts permitted by this chapter and rules and

regulations promulgated by the commission.

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

or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (d)

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

to, civil penalty, disciplinary action, termination, or loss of employee or pension benefits, for any

and all conduct that occurs within the scope of his or her employment regarding the administration,

execution, and/or enforcement of this chapter and rules and regulations promulgated by the

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

     21-28.11-11. Cannabis testing laboratories — Licensure and oversight.

     (a) In consultation with the department of health, the commission shall have authority to

promulgate regulations to create and implement all licenses involving cannabis reference testing

requirements, including approval of laboratory proficiency programs and proficiency sample

providers, quality assurance sample providers, round robin testing and regulations establishing

quality control and test standardization, and create and implement additional types and classes of

licensed cannabis testing facilities in accordance with regulations promulgated hereunder.

     (b)(1) The regulations promulgated by the commission shall at a minimum provide for the

licensure and oversight of cannabis testing laboratories, and shall establish testing protocols for the

sampling, testing and analysis of cannabis, finished cannabis and cannabis products in consultation

with the department of health. Such regulations shall be based on the most recent standards as

issued by the United States Pharmacopeial Convention and shall address sampling and analysis to

characterize the cannabinoid profile and biological and chemical contaminants, including, but not

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limited to, pesticides, herbicides, plant growth regulators, metals, microbiological contaminants,

and residual solvents introduced through cultivation of cannabis plants and post-harvest processing

and handling of cannabis, cannabis products and ingredients.

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

chapter that has not first been tested by a cannabis testing laboratory and determined to meet the

commission’s testing protocols issued pursuant to subsection (a) of this section.

     (3) A licensed cannabis testing laboratory shall transport, store, possess, and test cannabis

in compliance with regulations promulgated by the commission. Nothing in this section shall be

construed as authorizing a cannabis testing laboratory to transfer or sell cannabis to a consumer. A

direct sale or transfer from a cannabis testing laboratory licensee to a consumer is prohibited.

     (4) A cannabis testing laboratory shall report any results indicating contamination to the

commission, the department of health and the department of environmental management within

forty-eight (48) hours of identification.

     (5) No laboratory agent or employee of a cannabis testing laboratory shall receive direct or

indirect financial compensation, other than such reasonable contractual fees to conduct such testing,

from any entity for which it is conducting testing pursuant to this chapter.

     (6) No individual who possesses an interest in or is a laboratory agent employed by a

cannabis testing laboratory, and no immediate family member of that individual, shall possess an

interest in or be employed by a cultivator, product manufacturer or retail cannabis establishment.

     (c) To qualify for issuance of a cannabis testing laboratory license under this section, an

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

to, the following:

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

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

of the state proof of residency;

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

terms established by the commission;

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

filings and payments for taxes with the division of taxation;

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

promulgated by rules and regulations and apply for a testing license from the commission prior to

testing, processing or transporting cannabis; and

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

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

LC004455 - Page 17 of 21

regulations.

     (d) Cannabis testing laboratories shall be responsible for ensuring the following, as related

to laboratory agents:

     (1) A laboratory agent shall be registered with the commission prior to volunteering or

working at a cannabis testing laboratory;

     (2) A cannabis testing laboratory shall apply to the commission for a registration document

for each affiliated laboratory agent by submitting, at a minimum, the name, address, and date of

birth of the laboratory agent;

     (3) A laboratory agent shall undergo a criminal background check pursuant to § 21-28.11-

12.1 and on terms established by the commission, prior to volunteering or working at a cannabis

testing laboratory. Laboratory agents shall also have a continuing duty to notify the commission of

any criminal conviction(s) that occur after the issuance of a registration document. A criminal

conviction shall not automatically result in suspension or revocation of registration, but shall be

subject to § 21-28.11-12.1; and

     (4) A cannabis testing laboratory shall notify the commission within one business day if a

laboratory agent ceases to be associated with the laboratory, and the laboratory agent’s registration

document shall be immediately revoked.

     (e) A cannabis testing laboratory and all agents and employees shall comply with all rules

adopted by the commission and all applicable laws.

     (f) As a condition of licensing and pursuant to the provisions of § 21-28.11-20, cannabis

testing laboratories shall consent and be subject to inspection by the commission or personnel

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

chapter and all rules and regulations promulgated pursuant to this chapter, to include, but not be

limited to, the provisions of chapter 5 of title 28 (the “fair employment practices act”).

     (g) Persons issued cannabis testing laboratory licenses shall be subject to the following:

     (1) A licensed cannabis testing laboratory shall notify and request approval from the

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

licensed cannabis testing laboratory who fails to notify the commission of any of these changes

shall be subject to an administrative fine of no more than one hundred fifty dollars ($150) or other

penalty as determined by the commission.

     (2) When a licensed cannabis testing laboratory notifies the commission of any changes

listed in this subsection, the commission shall issue the licensed cannabis testing laboratory a new

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

licensee payment of a fee specified in regulation.

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     (3) If a licensed cannabis testing laboratory loses his or her license document, he or she

shall notify the commission and submit a fee specified in regulation not to exceed the amount of

one hundred dollars ($100), within ten (10) days of losing the license document. The commission

shall issue a new license with a new random identification number.

     (4) A licensed cannabis testing laboratory has a continuing duty to notify the commission

of any criminal conviction(s) of a laboratory licensee or agent that occurs after the issuance of a

license or registration. A criminal conviction relating solely to a cannabis offense shall not

automatically result in suspension or revocation of a license, but shall be subject to § 21-28.11-

12.1.

     (5) If a licensed cannabis testing laboratory violates any provision of this chapter or

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

be suspended and/or revoked.

     (h) Immunity.

     (1) No licensed cannabis testing laboratory licensee or agent shall be subject to: arrest;

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

and by subsection (f) of this section; or penalty in any manner, or denied any right or privilege,

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

professional licensing board or entity, solely for acting in accordance with this chapter, chapter

28.6 of this title and the rules and regulations promulgated by the commission.

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

cannabis testing laboratory shall be subject to arrest; prosecution; search or seizure, except as

authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (f) of this section; or

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

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

for working for or with a licensed cannabis cultivator to engage in acts permitted by this chapter,

chapter 28.6 of this title and the rules and regulations promulgated by the commission.

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

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

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

to, civil penalty, disciplinary action, termination, or loss of employee or pension benefits, for any

and all conduct that occurs within the scope of his or her employment regarding the administration,

execution, and/or enforcement of this chapter, chapter 28.6 of this title and the rules and regulations

promulgated by the commission. The provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this

section.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO FOOD AND DRUGS -- THE RHODE ISLAND CANNABIS ACT

***

     This act would amend sections of the Rhode Island cannabis act relating to the residency

requirements for applicants for issuance of a license or certificate to own a cannabis establishment.

     This act would take effect upon passage.

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