2014 -- H 7611

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LC004432

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2014

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A N   A C T

RELATING TO FOOD AND DRUGS - COMPASSION CENTERS

     

     Introduced By: Representatives Tomasso, Slater, Carnevale, O'Brien, and Phillips

     Date Introduced: February 26, 2014

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 21-28.6-12 of the General Laws in Chapter 21-28.6 entitled "The

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Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act" is hereby amended to read as

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follows:

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     21-28.6-12. Compassion centers. -- (a) A compassion center registered under this

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section may acquire, possess, cultivate, manufacture, deliver, transfer, transport, supply, or

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dispense marijuana, or related supplies and educational materials, to registered qualifying patients

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and their registered primary caregivers who have designated it as one of their primary caregivers.

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A compassion center is a primary caregiver. Except as specifically provided to the contrary, all

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provisions of the Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act, sections 21-

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28.6-1 -- 21-28.6-11, apply to a compassion center unless they conflict with a provision contained

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in section 21-28.6-12.

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      (b) Registration of compassion centers--department authority:

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

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shall promulgate regulations governing the manner in which it shall consider applications for

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registration certificates for compassion centers, including regulations governing:

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      (i) The form and content of registration and renewal applications;

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      (ii) Minimum oversight requirements for compassion centers;

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      (iii) Minimum record-keeping requirements for compassion centers;

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      (iv) Minimum security requirements for compassion centers; and

 

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      (v) Procedures for suspending, revoking or terminating the registration of compassion

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centers that violate the provisions of this section or the regulations promulgated pursuant to this

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subsection.

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      (2) Within ninety (90) days of the effective date of this chapter, the department shall

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begin accepting applications for the operation of a single compassion center.

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      (3) Within one hundred fifty (150) days of the effective date of this chapter, the

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department shall provide for at least one public hearing on the granting of an application to a

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single compassion center.

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      (4) Within one hundred ninety (190) days of the effective date of this chapter, the

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department shall grant a single registration certificate to a single compassion center, providing at

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least one applicant has applied who meets the requirements of this chapter.

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      (5) If at any time after fifteen (15) months after the effective date of this chapter, there is

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no operational compassion center in Rhode Island, the department shall accept applications,

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provide for input from the public, and issue a registration certificate for a compassion center if a

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qualified applicant exists.

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      (6) Within two (2) years of the effective date of this chapter, the department shall begin

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accepting applications to provide registration certificates for two (2) additional compassion

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centers. The department shall solicit input from the public, and issue registration certificates if

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qualified applicants exist.

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      (7) Any time a compassion center registration certificate is revoked, is relinquished, or

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expires, the department shall accept applications for a new compassion center.

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      (8) If at any time after three (3) years after the effective date of this chapter, fewer than

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three (3) compassion centers are holding valid registration certificates in Rhode Island, the

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department shall accept applications for a new compassion center. No more than three (3)

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compassion centers may hold valid registration certificates at one time.

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      (9) Any compassion center application selected for approval by the department prior to

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January 1, 2012, shall remain in full force and effect, notwithstanding any provisions of this

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chapter to the contrary, and shall be subject to state law adopted herein and rules and regulations

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adopted by the department subsequent to passage of this legislation.

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      (c) Compassion center and agent applications and registration:

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      (1) Each application for a compassion center shall include:

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      (i) A non-refundable application fee paid to the department in the amount of two

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hundred fifty dollars ($250);

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      (ii) The proposed legal name and proposed articles of incorporation of the compassion

 

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center;

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      (iii) The proposed physical address of the compassion center, if a precise address has

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been determined, or, if not, the general location where it would be located. This may include a

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second location for the cultivation of medical marijuana;

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      (iv) A description of the enclosed, locked facility that would be used in the cultivation of

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marijuana;

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      (v) The name, address, and date of birth of each principal officer and board member of

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the compassion center;

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      (vi) Proposed security and safety measures which shall include at least one security

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alarm system for each location, planned measures to deter and prevent the unauthorized entrance

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into areas containing marijuana and the theft of marijuana, as well as a draft employee instruction

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manual including security policies, safety and security procedures, personal safety and crime

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prevention techniques; and

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      (vii) Proposed procedures to ensure accurate record keeping;

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      (2) Any time one or more compassion center registration applications are being

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considered, the department shall also allow for comment by the public and shall solicit input from

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registered qualifying patients, registered primary caregivers; and the towns or cities where the

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applicants would be located;

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      (3) Each time a compassion center certificate is granted, the decision shall be based upon

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the overall health needs of qualified patients and the safety of the public, including, but not

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limited to, the following factors:

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      (i) Convenience to patients from throughout the state of Rhode Island to the compassion

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centers if the applicant were approved;

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      (ii) The applicants' ability to provide a steady supply to the registered qualifying patients

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in the state;

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      (iii) The applicants' experience running a non-profit or business;

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      (iv) The interests of qualifying patients regarding which applicant be granted a

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registration certificate;

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      (v) The interests of the city or town where the dispensary would be located;

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      (vi) The sufficiency of the applicant's plans for record keeping and security, which

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records shall be considered confidential health care information under Rhode Island law and are

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intended to be deemed protected health care information for purposes of the Federal Health

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Insurance Portability and Accountability Act of 1996, as amended; and

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      (vii) The sufficiency of the applicant's plans for safety and security, including proposed

 

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location, security devices employed, and staffing;

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      (4) After a compassion center is approved, but before it begins operations, it shall submit

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the following to the department:

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      (i) A fee paid to the department in the amount of five thousand dollars ($5,000);

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      (ii) The legal name and articles of incorporation of the compassion center;

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      (iii) The physical address of the compassion center; this may include a second address

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for the secure cultivation of marijuana;

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      (iv) The name, address, and date of birth of each principal officer and board member of

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the compassion center;

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      (v) The name, address, and date of birth of any person who will be an agent of, employee

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or volunteer of the compassion center at its inception;

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      (5) The department shall track the number of registered qualifying patients who

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designate each compassion center as a primary caregiver, and issue a written statement to the

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compassion center of the number of qualifying patients who have designated the compassion

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center to serve as a primary caregiver for them. This statement shall be updated each time a new

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registered qualifying patient designates the compassion center or ceases to designate the

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compassion center and may be transmitted electronically if the department's regulations so

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provide. The department may provide by regulation that the updated written statements will not

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be issued more frequently than twice each week;

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      (6) Except as provided in subdivision (7), the department shall issue each principal

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officer, board member, agent, volunteer and employee of a compassion center a registry

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identification card or renewal card within ten (10) days of receipt of the person's name, address,

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date of birth; a fee in an amount established by the department; and notification to the department

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by the state police that the registry identification card applicant has not been convicted of a felony

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drug offense or has not entered a plea of nolo contendere for a felony drug offense and received a

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sentence of probation. Each card shall specify that the cardholder is a principal officer, board

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member, agent, volunteer, or employee of a compassion center and shall contain the following:

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      (i) The name, address, and date of birth of the principal officer, board member, agent,

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volunteer or employee;

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      (ii) The legal name of the compassion center to which the principal officer, board

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member, agent, volunteer or employee is affiliated;

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      (iii) A random identification number that is unique to the cardholder;

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

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      (v) A photograph, if the department decides to require one;

 

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      (7) Except as provided in this subsection, the department shall not issue a registry

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identification card to any principal officer, board member, agent, volunteer, or employee of a

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compassion center who has been convicted of a felony drug offense or has entered a plea of nolo

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contendere for a felony drug offense and received a sentence of probation. The department shall

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notify the compassion center in writing of the purpose for denying the registry identification card.

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The department may grant such person a registry identification card if the department determines

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that the offense was for conduct that occurred prior to the enactment of the Edward O. Hawkins

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and Thomas C. Slater Medical Marijuana Act or that was prosecuted by an authority other than

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the state of Rhode Island and for which the Edward O. Hawkins and Thomas C. Slater Medical

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Marijuana Act would otherwise have prevented a conviction;

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      (i) All registry identification card applicants shall apply to the state police for a national

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criminal identification records check that shall include fingerprints submitted to the federal

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bureau of investigation. Upon the discovery of a felony drug offense conviction or a plea of nolo

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contendere for a felony drug offense with a sentence of probation, and in accordance with the

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rules promulgated by the director, the state police shall inform the applicant, in writing, of the

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nature of the felony and the state police shall notify the department, in writing, without disclosing

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the nature of the felony, that a felony drug offense conviction or a plea of nolo contendere for a

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felony drug offense with probation has been found.

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      (ii) In those situations in which no felony drug offense conviction or plea of nolo

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contendere for a felony drug offense with probation has been found, the state police shall inform

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

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      (iii) All registry identification card applicants shall be responsible for any expense

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associated with the criminal background check with fingerprints.

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      (8) A registry identification card of a principal officer, board member, agent, volunteer,

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or employee shall expire one year after its issuance, or upon the expiration of the registered

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organization's registration certificate, or upon the termination of the principal officer, board

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member, agent, volunteer or employee's relationship with the compassion center, whichever

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occurs first.

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      (d) Expiration or termination of compassion center:

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      (1) A compassion center's registration shall expire two (2) years after its registration

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certificate is issued. The compassion center may submit a renewal application beginning sixty

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(60) days prior to the expiration of its registration certificate;

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      (2) The department shall grant a compassion center's renewal application within thirty

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(30) days of its submission if the following conditions are all satisfied:

 

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      (i) The compassion center submits the materials required under subdivision (c)(4),

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including a five thousand dollar ($5,000) fee;

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      (ii) The compassion center's registration has never been suspended for violations of this

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chapter or regulations issued pursuant to this chapter;

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      (iii) The legislative oversight committee's report, if issued pursuant to subsection (4)(j),

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indicates that the compassion center is adequately providing patients with access to medical

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marijuana at reasonable rates; and

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      (iv) The legislative oversight committee's report, if issued pursuant to subsection (4)(j),

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does not raise serious concerns about the continued operation of the compassion center applying

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for renewal.

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      (3) If the department determines that any of the conditions listed in paragraphs (d)(2)(i) -

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- (iv) have not been met, the department shall begin an open application process for the operation

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of a compassion center. In granting a new registration certificate, the department shall consider

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factors listed in subdivision (c)(3) of this section;

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      (4) The department shall issue a compassion center one or more thirty (30) day

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temporary registration certificates after that compassion center's registration would otherwise

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expire if the following conditions are all satisfied:

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      (i) The compassion center previously applied for a renewal, but the department had not

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yet come to a decision;

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      (ii) The compassion center requested a temporary registration certificate; and

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      (iii) The compassion center has not had its registration certificate revoked due to

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violations of this chapter or regulations issued pursuant to this chapter.

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      (5) A compassion center's registry identification card shall be subject to revocation if the

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compassion center:

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      (i) Possesses an amount of marijuana exceeding the limits established by this chapter;

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      (ii) Is in violation of the laws of this state;

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      (iii) Is in violation of other departmental regulations; or

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      (iv) Employs or enters into a business relationship with a medical practitioner who

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provides written certification of a qualifying patient's medical condition.

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      (e) Inspection. - Compassion centers are subject to reasonable inspection by the

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department of health, division of facilities regulation. During an inspection, the department may

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review the compassion center's confidential records, including its dispensing records, which shall

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track transactions according to qualifying patients' registry identification numbers to protect their

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confidentiality.

 

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      (f) Compassion center requirements:

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      (1) A compassion center shall be operated on a not-for-profit basis for the mutual benefit

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of its patients. A compassion center need not be recognized as a tax-exempt organization by the

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Internal Revenue Services;

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      (2) A compassion center may not be located within one thousand feet (1000') of the

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property line of a preexisting public or private school;

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      (3) A compassion center shall notify the department within ten (10) days of when a

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principal officer, board member, agent, volunteer or employee ceases to work at the compassion

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center. His or her card shall be deemed null and void and the person shall be liable for any

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penalties that may apply to any nonmedical possession or use of marijuana by the person;

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      (4) A compassion center shall notify the department in writing of the name, address, and

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date of birth of any new principal officer, board member, agent, volunteer or employee and shall

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submit a fee in an amount established by the department for a new registry identification card

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before that person begins his or her relationship with the compassion center;

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      (5) A compassion center shall implement appropriate security measures to deter and

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prevent the unauthorized entrance into areas containing marijuana and the theft of marijuana and

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shall insure that each location has an operational security alarm system. Each compassion center

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shall request that the Rhode Island state police visit the compassion center to inspect the security

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of the facility and make any recommendations regarding the security of the facility and its

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personnel within ten (10) days prior to the initial opening of each compassion center. Said

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recommendations shall not be binding upon any compassion center, nor shall the lack of

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implementation of said recommendations delay or prevent the opening or operation of any center.

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If the Rhode Island state police do not inspect the compassion center within the ten (10) day

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period there shall be no delay in the compassion center's opening.

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      (6) The operating documents of a compassion center shall include procedures for the

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oversight of the compassion center and procedures to ensure accurate record keeping;

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      (7) A compassion center is prohibited from acquiring, possessing, cultivating,

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manufacturing, delivering, transferring, transporting, supplying, or dispensing marijuana for any

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purpose except to assist registered qualifying patients with the medical use of marijuana directly

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or through the qualifying patient's other primary caregiver;

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      (8) All principal officers and board members of a compassion center must be residents of

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the state of Rhode Island;

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      (9) Each time a new registered qualifying patient visits a compassion center, it shall

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provide the patient with frequently asked questions sheet designed by the department, which

 

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explains the limitations on the right to use medical marijuana under state law;

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      (10) Each compassion center shall develop, implement, and maintain on the premises

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employee, volunteer and agent policies and procedures to address the following requirements:

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      (i) A job description or employment contract developed for all employees and agents and

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a volunteer agreement for all volunteers, which includes duties, authority, responsibilities,

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qualifications, and supervision; and

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      (ii) Training in and adherence to state confidentiality laws.

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      (11) Each compassion center shall maintain a personnel record for each employee, agent

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and volunteer that includes an application and a record of any disciplinary action taken;

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      (12) Each compassion center shall develop, implement, and maintain on the premises an

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on-site training curriculum, or enter into contractual relationships with outside resources capable

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of meeting employee training needs, which includes, but is not limited to, the following topics:

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      (i) Professional conduct, ethics, and patient confidentiality; and

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      (ii) Informational developments in the field of medical use of marijuana.

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      (13) Each compassion center entity shall provide each employee, agent and volunteer, at

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the time of his or her initial appointment, training in the following:

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      (i) The proper use of security measures and controls that have been adopted; and

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      (ii) Specific procedural instructions on how to respond to an emergency, including

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robbery or violent accident;

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      (14) All compassion centers shall prepare training documentation for each employee and

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volunteer and have employees and volunteers sign a statement indicating the date, time, and place

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the employee and volunteer received said training and topics discussed, to include name and title

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of presenters. The compassion center shall maintain documentation of an employee's and a

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volunteer's training for a period of at least six (6) months after termination of an employee's

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employment or the volunteer's volunteering.

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      (g) Maximum amount of usable marijuana to be dispensed:

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      (1) A compassion center or principal officer, board member, agent, volunteer or

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employee of a compassion center may not dispense more than two and one half ounces (2.5 oz) of

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usable marijuana to a qualifying patient directly or through a qualifying patient's other primary

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caregiver during a fifteen (15) day period;

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      (2) A compassion center or principal officer, board member, agent, volunteer or

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employee of a compassion center may not dispense an amount of usable marijuana or marijuana

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plants to a qualifying patient or a qualifying patient's other primary caregiver that the compassion

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center, principal officer, board member, agent, volunteer, or employee knows would cause the

 

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recipient to possess more marijuana than is permitted under the Edward O. Hawkins and Thomas

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C. Slater Medical Marijuana Act.

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      (h) Immunity:

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      (1) No registered compassion center shall be subject to prosecution; search, except by

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the department pursuant to subsection (e); seizure; or penalty in any manner or denied any right

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

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

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section to assist registered qualifying patients to whom it is connected through the department's

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registration process with the medical use of marijuana;

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      (2) No registered compassion center shall be subject to prosecution; seizure or penalty in

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

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

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selling, giving or distributing marijuana in whatever form and within the limits established by the

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department to another registered compassion center;

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

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registered compassion center shall be subject to arrest, prosecution, search, seizure, or penalty in

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

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

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for working for or with a compassion center to engage in acts permitted by this section.

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      (4) No state employee shall be subject to arrest, prosecution or penalty in any manner, or

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

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

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

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this act, and the provisions of Rhode Island general laws, sections 9-31-8 and 9-31-9 shall be

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applicable to this section.

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      (i) Prohibitions:

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      (1) A compassion center shall not possess an amount of marijuana at any given time that

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exceeds the following limitations:

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      (i) One hundred fifty (150) marijuana plants of which no more than ninety-nine (99)

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shall be mature; and

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      (ii) One thousand five hundred ounces (1500 oz.) of usable marijuana.

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      (2) A compassion center may not dispense, deliver, or otherwise transfer marijuana to a

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person other than a qualifying patient who has designated the compassion center as a primary

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caregiver or to such patient's other primary caregiver;

 

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      (3) A person found to have violated paragraph (2) of this subsection may not be an

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employee, agent, volunteer, principal officer, or board member of any compassion center;

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      (4) An employee, agent, volunteer, principal officer or board member of any compassion

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center found in violation of paragraph (2) above shall have his or her registry identification

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revoked immediately; and

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      (5) No person who has been convicted of a felony drug offense or has entered a plea of

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nolo contendere for a felony drug offense with a sentence or probation may be the principal

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officer, board member, agent, volunteer, or employee of a compassion center unless the

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department has determined that the person's conviction was for the medical use of marijuana or

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assisting with the medical use of marijuana in accordance with the terms and conditions of this

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chapter. A person who is employed by or is an agent, volunteer, principal officer, or board

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member of a compassion center in violation of this section is guilty of a civil violation punishable

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by a fine of up to one thousand dollars ($1,000). A subsequent violation of this section is a

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misdemeanor:.

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     (6) A compassion center may not advertise medical marijuana sales in print, broadcast, or

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by paid in-person solicitation of customers. This shall not prevent appropriate signs on the

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property of the registered compassion center, listings in business directories including phone

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books, listings in trade or medical publications, or the sponsorship of health or not-for-profit

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charity or advocacy events; provided, that compassion centers may advertise on the internet only

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by allowing patients and caregivers to log on to the website with their identification number on

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their registry identification card. This advertising shall be limited to referencing diagnosed

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conditions, and shall not allow for discount coupons, nor be directed at minors.

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      (j) Legislative oversight committee:

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      (1) The general assembly shall appoint a nine (9) member oversight committee

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comprised of: one member of the house of representatives; one member of the senate; one

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physician to be selected from a list provided by the Rhode Island medical society; one nurse to be

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selected from a list provided by the Rhode Island state nurses association; two (2) registered

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qualifying patients; one registered primary caregiver; one patient advocate to be selected from a

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list provided by the Rhode Island patient advocacy coalition; and the superintendent of the Rhode

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Island state police or his/her designee.

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      (2) The oversight committee shall meet at least six (6) times per year for the purpose of

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evaluating and making recommendations to the general assembly regarding:

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      (i) Patients' access to medical marijuana;

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      (ii) Efficacy of compassion center;

 

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      (iii) Physician participation in the Medical Marijuana Program;

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      (iv) The definition of qualifying medical condition;

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      (v) Research studies regarding health effects of medical marijuana for patients.

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      (3) On or before January 1 of every even numbered year, the oversight committee shall

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report to the general assembly on its findings.

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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 - COMPASSION CENTERS

***

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     This act would prohibit compassion centers from advertising medical marijuana sales in

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print, broadcast or in-person solicitation of customers. Internet advertising is allowed but patients

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and caregivers are allowed to log on only by use of their registry identification number.

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     This act would take effect upon passage.

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