2018 -- S 2434

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LC003729

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2018

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A N   A C T

RELATING TO FOOD AND DRUGS - THE EDWARD O. HAWKINS AND THOMAS C.

SLATER MEDICAL MARIJUANA ACT

     

     Introduced By: Senators Archambault, Satchell, Miller, Conley, and Ciccone

     Date Introduced: February 15, 2018

     Referred To: Senate 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.

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     (a) A compassion center registered under this section may acquire, possess, cultivate,

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manufacture, deliver, transfer, transport, supply, or dispense marijuana, or related supplies and

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educational materials, to registered qualifying patients and their registered primary caregivers or

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authorized purchasers. Except as specifically provided to the contrary, all provisions of the

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Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act, §§ 21-28.6-1 -- 21-28.6-11,

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apply to a compassion center unless they conflict with a provision contained in § 21-28.6-12.

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     (b) Registration of compassion centers--authority of the departments of health and

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business regulation:

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

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

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applications for 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 of health

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shall 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 of health shall provide for at least one public hearing on the granting of an application

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to a 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 of health shall grant a single registration certificate to a single compassion center,

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providing at 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 of health shall accept

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applications, provide for input from the public, and issue a registration certificate for a

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compassion center if a qualified applicant exists.

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

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

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

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certificates if qualified applicants exist.

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

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expires on or before December 31, 2016, the department of health shall accept applications for a

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new compassion center.

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

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expires on or after January 1, 2017, the department of business regulation shall accept

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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 and on or

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before December 31, 2016 January 1, 2018, fewer than three (3) twelve (12) compassion centers

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are holding valid registration certificates in Rhode Island, the department of health shall accept

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applications for a one or more new compassion center centers. If at any time on or after January

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1, 2017, fewer than three (3) compassion centers are holding valid registration certificates in

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Rhode Island, the department of business regulation shall accept applications for a new

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compassion center. No more than three (3) twelve (12) compassion centers may hold valid

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registration certificates at one time. Any new compassion centers approved by the department

 

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after January 1, 2018, shall be disbursed geographically, to be located in Providence, Bristol,

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Newport, or Washington counties, with no more than one new compassion center in each county.

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     (9) Any compassion center application selected for approval by the department of health

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on or before December 31, 2016, or selected for approval by the department of business

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regulation on or after January 1, 2017, shall remain in full force and effect, notwithstanding any

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provisions of this chapter to the contrary, and shall be subject to state law adopted herein and

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rules and regulations adopted by the departments of health and business regulation subsequent to

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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 hundred

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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 that shall include at least one security alarm

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

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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) (i) For applications submitted on or before December 31, 2016, any time one or more

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compassion center registration applications are being considered, the department of health shall

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also allow for comment by the public and shall solicit input from registered qualifying patients,

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registered primary caregivers; and the towns or cities where the applicants would be located;

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     (ii) For applications submitted on or after January 1, 2017, any time one or more

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compassion center registration applications are being considered, the department of business

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regulation shall also allow for comment by the public and shall solicit input from registered

 

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

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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 applicant's ability to provide a steady supply to the registered qualifying patients

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in the state;

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     (iii) The applicant's 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) A compassion center approved by the department of health on or before December

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31, 2016, shall submit the following to the department before it may begin operations:

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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 for

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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; and

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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) A compassion center approved by the department of business regulation on or after

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January 1, 2017, shall submit the following to the department before it may begin operations:

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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 for

 

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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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     (6) Except as provided in subdivision (7), the department of health or the department of

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business regulation shall issue each principal officer, board member, agent, volunteer, and

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employee of a compassion center a registry identification card or renewal card after receipt of the

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person's name, address, date of birth; a fee in an amount established by the department of health

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or the department business regulation; and notification to the department of health or the

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department of business regulation by the department of public safety division of state police that

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the registry identification card applicant has not been convicted of a felony drug offense or has

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

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probation. Each card shall specify that the cardholder is a principal officer, board member, agent,

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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 of health or the department of business regulation

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decides to require one.

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     (7) Except as provided in this subsection, neither the department of health nor the

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department of business regulation shall issue a registry identification card to any principal officer,

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board member, agent, volunteer, or employee of a compassion center who has been convicted of a

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felony drug offense or has entered a plea of nolo contendere for a felony drug offense and

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received a sentence of probation. If a registry identification card is denied, the compassion center

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will be notified in writing of the purpose for denying the registry identification card. A registry

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identification card may be granted if the offense was for conduct that occurred prior to the

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enactment of the Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act or that was

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prosecuted by an authority other than the state of Rhode Island and for which the Edward O.

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Hawkins and Thomas C. Slater Medical Marijuana Act would otherwise have prevented a

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conviction.

 

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     (i) All registry identification card applicants shall apply to the department of public safety

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division of state police for a national criminal identification records check that shall include

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fingerprints submitted to the federal bureau of investigation. Upon the discovery of a felony drug

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offense conviction or a plea of nolo contendere for a felony drug offense with a sentence of

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probation, and in accordance with the rules promulgated by the department of health and the

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department of business regulation, the department of public safety division of state police shall

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inform the applicant, in writing, of the nature of the felony and the department of public safety

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division of state police shall notify the department of health or the department of business

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regulation, in writing, without disclosing the nature of the felony, that a felony drug offense

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conviction or a plea of nolo contendere for a 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 department of public

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safety division of state police shall inform the applicant and the department of health or the

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department of business regulation, 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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     (9) A compassion center cardholder shall notify and request approval from the

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department of business regulation of any change in his or her name or address within ten (10)

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days of such change. A compassion center cardholder who fails to notify the department of

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business regulation of any of these changes is responsible for a civil infraction, punishable by a

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fine of no more than one hundred fifty dollars ($150).

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     (10) When a compassion center cardholder notifies the department of health or the

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department of business regulation of any changes listed in this subsection, the department shall

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issue the cardholder a new registry identification card within ten (10) days of receiving the

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updated information and a ten-dollar ($10.00) fee.

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     (11) If a compassion center cardholder loses his or her registry identification card, he or

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she shall notify the department of health or the department of business regulation and submit a ten

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dollar ($10.00) fee within ten (10) days of losing the card. Within five (5) days, the department

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shall issue a new registry identification card with new random identification number.

 

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     (12) On or before December 31, 2016, a compassion center cardholder shall notify the

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department of health of any disqualifying criminal convictions as defined in subdivision (c)(7).

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The department of health may choose to suspend and/or revoke his or her registry identification

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card after such notification.

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     (13) On or after January 1, 2017, a compassion center cardholder shall notify the

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department of business regulation of any disqualifying criminal convictions as defined in

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subdivision (c)(7). The department of business regulation may choose to suspend and/or revoke

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his or her registry identification card after such notification.

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     (14) If a compassion center cardholder violates any provision of this chapter or

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regulations promulgated hereunder as determined by the departments of health and business

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regulation, his or her registry identification card may be suspended and/or revoked.

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     (d) Expiration or termination of compassion center:

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     (1) On or before December 31, 2016, a compassion center's registration shall expire two

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(2) years after its registration certificate is issued. On or after January 1, 2017, a compassion

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center's registration shall expire one year after its registration certificate is issued. The

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compassion center may submit a renewal application beginning sixty (60) days prior to the

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expiration of its registration certificate;

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     (2) The department of health or the department of business regulation shall grant a

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compassion center's renewal application within thirty (30) days of its submission if the following

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conditions are all satisfied:

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     (i) The compassion center submits the materials required under subdivisions (c)(4) and

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(c)(5), 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; and

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     (iii) The department of health and the department of business regulation find that the

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compassion center is adequately providing patients with access to medical marijuana at

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reasonable rates;

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     (3) If the department of health or the department of business regulation determines that

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any of the conditions listed in paragraphs (d)(2)(i) -- (iii) have not been met, the department shall

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begin an open application process for the operation of a compassion center. In granting a new

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registration certificate, the department of health or the department of business regulation shall

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consider factors listed in subdivision (c)(3);

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     (4) The department of health or the department of business regulation shall issue a

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compassion center one or more thirty-day (30) temporary registration certificates after that

 

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compassion center's registration would otherwise expire if the following conditions are all

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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 department

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of health, division of facilities regulation and the department of business regulation. During an

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inspection, the departments may review the compassion center's confidential records, including

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its dispensing records, which shall track transactions according to qualifying patients' registry

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identification numbers to protect their 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 Service;

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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) On or before December 31, 2016, a compassion center shall notify the department of

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health within ten (10) days of when a principal officer, board member, agent, volunteer, or

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employee ceases to work at the compassion center. On or after January 1, 2017, a compassion

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center shall notify the department of business regulation within ten (10) days of when a principal

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

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His or her card shall be deemed null and void and the person shall be liable for any penalties that

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

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     (4) (i) On or before December 31, 2016, a compassion center shall notify the department

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of health in writing of the name, address, and date of birth of any new principal officer, board

 

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member, agent, volunteer or employee and shall submit a fee in an amount established by the

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department for a new registry identification card before that person begins his or her relationship

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with the compassion center;

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     (ii) On or after January 1, 2017, a compassion center shall notify the department of

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business regulation, in writing, of the name, address, and date of birth of any new principal

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officer, board member, agent, volunteer, or employee and shall submit a fee in an amount

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established by the department for a new registry identification card before that person begins his

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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 department of public safety division of state police visit the compassion

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center to inspect the security of the facility and make any recommendations regarding the security

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of the facility and its personnel within ten (10) days prior to the initial opening of each

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compassion center. Said recommendations shall not be binding upon any compassion center, nor

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shall the lack of implementation of said recommendations delay or prevent the opening or

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operation of any center. If the department of public safety division of state police does not inspect

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the compassion center within the ten-day (10) period, there shall be no delay in the compassion

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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 primary caregiver or authorized purchaser.

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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 a frequently asked questions sheet, designed by the department, that

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

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     (10) Effective July 1, 2016, each compassion center shall be subject to any regulations

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promulgated by the department of health that specify how usable marijuana must be tested for

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items included but not limited to cannabinoid profile and contaminants.

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     (11) Effective January 1, 2017, each compassion center shall be subject to any product

 

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labeling requirements promulgated by the department of business regulation.

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     (12) 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, that 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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     (13) 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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     (14) 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, that 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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     (15) 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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     (16) 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.)

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of usable marijuana, or its equivalent, to a qualifying patient directly or through a qualifying

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patient's primary caregiver or authorized purchaser during a fifteen-day (15) 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 its

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equivalent, seedlings, or mature marijuana plants, to a qualifying patient, a qualifying patient's

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primary caregiver, or a qualifying patient's authorized purchaser that the compassion center,

 

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

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

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Medical Marijuana Act.

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     (3) Compassion centers shall utilize a database administered by the departments of health

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and business regulation. The database shall contains all compassion centers' transactions

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according to qualifying patients', authorized purchasers', and primary caregivers', registry

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identification numbers to protect the confidentiality of patient personal and medical information.

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Compassion centers will not have access to any applications or supporting information submitted

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by qualifying patients, authorized purchasers or primary caregivers. Before dispensing marijuana

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to any patient or authorized purchaser, the compassion center must utilize the database to ensure

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that a qualifying patient is not dispensed more than two and one half ounces (2.5 oz.) of usable

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marijuana or its equivalent directly or through the qualifying patient's primary caregiver or

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authorized purchaser during a fifteen-day (15) period.

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     (h) Immunity:

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

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departments pursuant to subsection (e); seizure; or penalty in any manner, or denied any right or

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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.

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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,

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the department of health or the department of business regulation to another registered

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compassion center.

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

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

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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

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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 §§ 9-31-8 and 9-31-9 shall be applicable to this section.

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     (i) Prohibitions:

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     (1) A compassion center must limit its inventory of seedlings, plants, and usable

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marijuana to reflect the projected needs of qualifying patients;

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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 or to such patient's primary caregiver or authorized

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purchaser;

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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) shall have his or her registry identification revoked

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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

20

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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     (j) Legislative oversight committee:

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

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

25

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

28

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

29

department of public safety, 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 centers;

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     (iii) Physician participation in the Medical Marijuana Program;

 

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     (iv) The definition of qualifying medical condition; and

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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 - THE EDWARD O. HAWKINS AND THOMAS C.

SLATER MEDICAL MARIJUANA ACT

***

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     This act would increase the number of permits for medical marijuana compassion centers

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from three (3) to twelve (12). The additional compassion centers would be approved by the

3

department of health, with no more than one of each additional compassion center to be located in

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Providence, Bristol, Newport, or Washington counties.

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     This act would take effect upon passage.

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