2019 -- H 5828

========

LC000710

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

____________

A N   A C T

RELATING TO FOOD AND DRUGS -- ADULT USE OF CANNABIS PILOT PROGRAM

     Introduced By: Representatives Slater, O'Brien, Blazejewski, Williams, and Solomon

     Date Introduced: March 08, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 21 of the General Laws entitled "FOOD AND DRUGS" is hereby

amended by adding thereto the following chapters:

CHAPTER 28.10

ADULT USE OF CANNABIS PILOT PROGRAM

     21-28.10-1. Short title.

     This chapter shall be known and may be cited as the "Adult Use of Cannabis Pilot

Program."

     21-28.10-2. Legislative findings.

     The general assembly hereby finds and declares that:

     (1) An adult use of cannabis pilot program shall be implemented, recognizing there are

legitimate concerns on implementing a widespread cannabis industry in the state, necessitating an

incremental rollout of newly licensed entities to best ensure public health and safety;

     (2) The pilot program will utilize the existing expertise and infrastructure of approved

entities in the medical cannabis program for cultivation, processing, and retail operations, while

allowing for a thoughtful and deliberate expansion of access to cannabis for those over the age of

twenty-one (21), and

     (3) On January 2, 2021, a special legislative commission shall be created to review the

pilot program and make recommendations to the general assembly on or before March 1, 2021,

and said commission shall expire on July 1, 2021.

     21-28.10-3. Definitions.

     For the purposes of this chapter:

     (1) "Cannabis" means marijuana and all parts of the plant of the genus cannabis, whether

growing or not; the seeds thereof; the resin extracted from any part of the plant; and every

compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. It

does not include hemp, the mature stalks of the plant, fiber produced from the stalks, oil or cake

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

or preparation of the mature stalks (except the resin extracted from it), fiber, oil, or cake, or the

sterilized seed of the plant that is incapable of germination.

     (2) "Cannabis cultivation facility" means an entity that is registered pursuant to chapter

28.11 of title 21, to be exempt from state penalties for manufacturing cannabis or cannabis

products, cultivating, preparing, packaging, and selling cannabis to a retailer, processor, or

another cannabis cultivation facility, but not for selling cannabis products or selling cannabis to

the general public.

     (3) "Cannabis establishment" means a cannabis cultivation facility, processor, retailer, or

cannabis testing facility.

     (4) "Cannabis paraphernalia" means equipment, products, and materials which are used

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

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

repackaging, storing, containing, concealing, ingesting, inhaling, or otherwise introducing

cannabis into the human body.

     (5) "Cannabis processor" means an entity registered pursuant to chapter 28.11 of title 21

to be exempt from state penalties for purchasing cannabis from cannabis cultivation facilities,

manufacturing cannabis products, and selling, giving, or transferring cannabis products to a

cannabis retailer or a cannabis testing facility.

     (6) "Cannabis products" means concentrated cannabis and products that are comprised of

cannabis and other ingredients that are intended for use or consumption, including, but not limited

to, edible products, ointments, and tinctures.

     (7) "Cannabis testing facility" means an entity that is registered pursuant to chapter 28.11

of title 21 to be exempt from state penalties for testing cannabis and cannabis products for

potency and contaminants.

     (8) "Dwelling unit" means a room or group of rooms within a dwelling used or intended

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

sleeping, cooking and eating.

LC000710 - Page 2 of 87

     (9) "Manufacture" and/or "manufacturing" the production, preparation, propagation,

compounding, conversion or processing of cannabis, either directly or indirectly, by means of

chemical synthesis, including any packaging or repackaging of the cannabis or cannabis products

or labelling or re-labeling its containers.

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

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

and any other place to which the public has access.

     (11) "Retailer" means an entity that is registered pursuant to chapter 28.11 of title 21 to

be exempt from state penalties for purchasing cannabis from cannabis cultivation facilities, and

selling cannabis, cannabis products, and cannabis paraphernalia to customers who are twenty-one

(21) years of age or older.

     (12) "Smoke" means to heat to at least the point of combustion, causing plant material to

burn. It does not include vaporizing, which means heating below the point of combustion and

resulting in a vapor or mist.

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

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

     21-28.10-4. Exempt activities.

     Except as otherwise provided in this chapter:

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

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

and state prosecution for the following acts:

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

one ounce (1 oz.) or less of cannabis, not including cannabis products;

     (ii) Actually or constructively using, obtaining, purchasing, transporting, or possessing

cannabis products containing no more than three hundred milligrams (300mg) of delta-9-

tetrahydrocannabinol;

     (iii) Possessing five ounces (5 oz.) or less of cannabis in the person’s primary residence;

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

age or older possess, process, or store amounts of cannabis and cannabis products that are legal

under state law under subsections (1)(i) and (1)(ii) of this section;

     (v) Using, obtaining, manufacturing, producing, purchasing, transporting, or possessing,

actually or constructively, cannabis paraphernalia;

     (vi) Giving away, without consideration, cannabis seeds to a cannabis establishment or to

a person who is twenty-one (21) years of age or older;

LC000710 - Page 3 of 87

     (vii) Selling, delivering, or transferring cannabis paraphernalia to cannabis establishments

or persons who are twenty-one (21) years of age or older;

     (viii) Giving away, without consideration, the amounts of cannabis and cannabis products

that are legal under state law under subsections (1)(i) and (1)(ii) of this section if the recipient is a

person who is twenty-one (21) years of age or older;

     (ix) Transferring or delivering cannabis products or up to one ounce (1oz.) of cannabis to

a cannabis testing facility;

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

the actions allowed under this chapter;

     (xi) Cultivating, possessing, growing, processing, or transporting no more than two (2)

cannabis plants, which are accompanied by valid cannabis tags issued by the department of

business regulation, with one or fewer being a mature, flowering plant;

     (xii) Controlling any premises where other persons twenty-one (21) years of age or older

cultivate cannabis plants, which are accompanied by valid cannabis tags issued by the department

of business regulation, with the total number of mature, flowering plants not exceeding three (3)

in any dwelling unit unless a greater number is allowed pursuant to chapter 28.6 of title 21;

     (xiii) Assisting with the cultivation of cannabis plants, which are accompanied by valid

cannabis tags issued by the department of business regulation, that are cultivated at the same

location for persons twenty-one (21) years of age or older, with the total number of mature,

flowering plants not exceeding three (3) in any dwelling unit; and

     (xiv) Any combination of the acts described within subsections (1)(i) through (1)(xiii) of

this section, inclusive.

     (2) Except as provided in this chapter and chapter 28.11 of title 21, a retailer or any

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

principal officer, partner, board member, employee, or agent of a retailer is exempt from arrest,

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

board, and state prosecution for the following acts:

     (i) Actually or constructively transporting or possessing cannabis, including seedlings or

cuttings, that was purchased from a cannabis cultivation facility or a retailer;

     (ii) Actually or constructively transporting or possessing cannabis products that were

purchased from a processor or a retailer;

     (iii) Obtaining or purchasing cannabis from a cannabis cultivation facility or cannabis and

cannabis products from a processor or a retailer;

     (iv) Selling, delivering, or transferring cannabis or cannabis products to another retailer;

LC000710 - Page 4 of 87

     (v) Selling, transferring, or delivering cannabis, including seedlings or cuttings, cannabis

products, or cannabis paraphernalia to any person who is twenty-one (21) years of age or older;

     (vi) Transferring or delivering cannabis or cannabis products to a cannabis testing

facility;

     (vii) Controlling any premises or vehicle where cannabis, cannabis products, and

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

this chapter or the regulations pursuant thereto; and

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

this section, inclusive.

     (3) Except as provided in this chapter and chapter 28.11 of title 21, a cannabis cultivation

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

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

facility is exempt from arrest, civil or criminal penalty, seizure or forfeiture of assets, discipline

by any state or local licensing board, and state prosecution for the following acts:

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

cannabis products;

     (ii) Transporting or possessing cannabis that was produced by the cannabis cultivation

facility or another cannabis cultivation facility;

     (iii) Transporting or possessing cannabis seeds;

     (iv) Possessing, transporting, or producing cannabis paraphernalia;

     (v) Selling, delivering, or transferring cannabis to a retailer, cannabis processor, or a

cannabis cultivation facility;

     (vi) Purchasing cannabis from a cannabis cultivation facility;

     (vii) Receiving cannabis seeds from a person who is twenty-one (21) years of age or

older;

     (viii) Delivering or transferring cannabis to a cannabis testing facility;

     (ix) Controlling any premises or vehicle where cannabis and cannabis paraphernalia are

possessed, manufactured, sold, or deposited; and

     (x) Any combination of the acts described within subsections (3)(i) through (3)(ix) of this

section, inclusive.

     (4) Except as provided in this chapter and chapter 28.11 of title 21, a cannabis processor

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

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

facility is exempt from arrest, civil or criminal penalty, seizure or forfeiture of assets, discipline

LC000710 - Page 5 of 87

by any state or local licensing board, and state prosecution for the following acts:

     (i) Producing, manufacturing, packing, processing, or transporting cannabis products;

     (ii) Packing, processing, possessing, or transporting cannabis or cannabis seeds that were

produced by a cannabis cultivation center;

     (iii) Possessing, transporting, or producing cannabis paraphernalia;

     (iv) Manufacturing, possessing, or producing cannabis products;

     (v) Selling, delivering, or transferring cannabis products to a cannabis retailer or another

cannabis processor;

     (vi) Purchasing cannabis from a cannabis cultivation facility or another cannabis

processor;

     (vii) Delivering or transferring cannabis or cannabis products to a cannabis testing

facility;

     (viii) Controlling any premises or vehicle where cannabis products and cannabis

paraphernalia are possessed, manufactured, sold, or deposited;

     (ix) Controlling any premises or vehicle where cannabis is possessed, packaged, or

deposited; and

     (x) Any combination of the acts described within subsections (4)(i) through (4)(ix) of this

section, inclusive.

     (5) Except as provided in this chapter and chapter 28.11 of title 21, a cannabis testing

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

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

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

business regulation or department of health pursuant to § 21-28.11-7; seizure; or penalty in an

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

disciplinary action by a court or business licensing board or entity for the following acts:

     (i) Acquiring, transporting, storing, or possessing cannabis or cannabis products;

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

processor facilities, and retailers, or, if the quantity is no more than the amounts allowed under

the provisions of this section, to individuals twenty-one (21) years of age or older;

     (iii) Receiving compensation for analytical testing, including for contaminants or

potency; and

     (iv) Any combination of the acts described within subsections (5)(i) through (5)(iii) of

this section, inclusive.

     (6) The acts set forth in subsections (1) through (5) of this section, when undertaken in

LC000710 - Page 6 of 87

compliance with the provisions of this chapter, are lawful under Rhode Island law.

     21-28.10-5. Authorized activities.

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

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

paraphernalia.

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

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

of age or older.

     21-28.10-6. Public or unsecured cultivation of cannabis - Penalty.

     (a) The manufacture or cultivation of two (2) or fewer cannabis plants by any person who

is twenty-one (21) years of age or older in a manner that is contrary to this subsection is a

misdemeanor punishable by a fine of up to one thousand dollars ($1,000), up to ten (10) days in

jail, or both.

     (b) Cultivation shall not occur in a location where the cannabis plants are subject to

public view, including from another private property, without the use of binoculars, aircraft, or

other optical aids.

     (c) Cannabis must be cultivated in an enclosed, locked location.

     (d) Cultivation may only occur on property lawfully in possession of the cultivator.

     (e) If one or more persons under twenty-one (21) years of age live in or are guests at the

property where cannabis is cultivated, reasonable precautions must be taken to prevent their

access to cannabis plants. For purposes of illustration and not limitation, cultivating cannabis in a

locked closet, room, or fully enclosed area to which the person or persons under twenty-one (21)

years of age do not possess a key, constitutes reasonable precautions.

     (f) Unless the cultivator is a cannabis cultivation facility, cannabis plants must be

accompanied by valid cannabis tags issued by the department of business regulation.

     21-28.10-7. Activities not exempt.

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

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

prosecution for, nor may they establish an affirmative defense based on this chapter to charges

arising from, any of the following acts:

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

power or sail while impaired by cannabis or cannabis products;

     (2) Possessing cannabis or cannabis products if the person is a prisoner;

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

LC000710 - Page 7 of 87

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

for the detention of juvenile offenders; or

     (4) Manufacturing of cannabis products with the use of prohibited solvents, in violation

of § 21- 28.10-12.

     21-28.10-8. Smoking cannabis shall be prohibited in all public places.

     (a) A person who smokes cannabis in a public place shall be liable for a civil penalty of

one hundred fifty dollars ($150).

     (b) Municipalities may impose additional fines for the public consumption of cannabis

that are equivalent to state fines for the consumption of alcohol in a public place.

     21-28.10-9. Places of employment.

     The provisions of this chapter do not require employers to accommodate the use or

possession of cannabis, or being under the influence of cannabis, in a place of employment.

     21-28.10-10. Private property.

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

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

consumption, cultivation, display, or transfer of cannabis on or in that property.

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

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

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

if it is done within a dwelling unit and is not visible from outside of the individual residential

dwelling unit. A landlord may prohibit the consumption, display, and transfer of cannabis by a

roomer as defined in § 34-18-11.

     21-28.10-11. False age representation.

     (a) Any person who falsely represents themselves to be twenty-one (21) years of age or

older in order to obtain any cannabis, cannabis products, or cannabis paraphernalia pursuant to

this chapter is guilty of a violation.

     (b) Any person who violates this section shall be punished for the first offense by a

mandatory fine of not less than one hundred dollars ($100) nor more than five hundred dollars

($500) and shall be further punished by thirty (30) hours of community service and by a

suspension of their motor vehicle operator's license or driving privileges for a period of thirty (30)

days; for the second offense by a mandatory fine of not less than five hundred dollars ($500) nor

more than seven hundred fifty dollars ($750) and shall be further punished by forty (40) hours of

community service and by a suspension of their motor vehicle operator's license or driving

privileges for a period of three (3) months; and for a third and subsequent offenses by a

LC000710 - Page 8 of 87

mandatory fine for each offense of not less than seven hundred fifty dollars ($750) nor more than

one thousand dollars ($1,000) and shall be further punished by fifty (50) hours of community

service and by a suspension of their motor vehicle operator's license or driving privileges for a

period of one year.

     21-28.10-12. Unlawful cannabis extraction, penalties.

     (a) No person, other than a processor complying with this chapter and accompanying

regulations or an agent of a processor acting in that capacity, may extract compounds from

cannabis using solvents other than water, glycerin, propylene glycol, vegetable oil, or food grade

ethanol (ethyl alcohol). No person may extract compounds from cannabis using ethanol in the

presence or vicinity of open flame.

     (b) A person who violates this section is guilty of a felony punishable by up to three (3)

years in prison and a fine of up to five thousand dollars ($5,000).

     (c) This section shall not apply to registered compassion centers under chapter 28.6 of

title 21.

CHAPTER 28.11

CANNABIS REGULATION, CONTROL, AND TAXATION ACT

     21-28.11-1. Short title.

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

Taxation Act."

     21-28.11-2. Definitions.

     For purposes of this chapter:

     (1) "Cannabis" means marijuana and all parts of the plant of the genus cannabis, whether

growing or not; the seeds thereof; the resin extracted from any part of the plant; and every

compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. It

does not include hemp, the mature stalks of the plant, fiber produced from the stalks, oil or cake

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

or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the

sterilized seed of the plant that is incapable of germination.

     (2) "Cannabis cultivation facility" means an entity that is registered pursuant to this

chapter, to be exempt from state penalties for manufacturing cannabis or cannabis products,

cultivating, preparing, packaging, and selling cannabis to a retailer, a cannabis processor, or

another cannabis cultivation facility, but not for selling cannabis products or selling cannabis to

the general public.

     (3) "Cannabis establishment" means a cannabis cultivation facility, processor, retailer, or

LC000710 - Page 9 of 87

cannabis testing facility.

     (4) "Cannabis processor" means an entity registered pursuant to this chapter, to be

exempt from state penalties for purchasing cannabis from cannabis cultivation facilities,

manufacturing cannabis products, and selling, giving, or transferring cannabis products to a

cannabis retailer or a cannabis testing facility.

     (5) "Cannabis products" means concentrated cannabis and products that are comprised of

cannabis and other ingredients and are intended for use or consumption, including, but not limited

to, edible products, ointments, and tinctures.

     (6) "Cannabis testing facility" means an entity that is registered pursuant to this chapter,

to be exempt from state penalties for testing cannabis for potency and contaminants.

     (7) "Manufacture" and/or "manufacturing" means the production, preparation,

propagation, compounding, conversion or processing of cannabis, either directly or indirectly, by

means of chemical synthesis, including any packaging or repackaging of the cannabis or cannabis

products or labelling or re-labeling its containers.

     (8) "Person" means and includes co-partnerships and bodies corporate and politic.

     (9) "Retailer" means an entity that is registered pursuant to this chapter, to be exempt

from state penalties for purchasing cannabis from cannabis cultivation facilities, and selling

cannabis, cannabis products, and cannabis paraphernalia to customers who are twenty-one (21)

years of age or older.

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

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

     21-28.11-3. Office of Cannabis Coordination.

     (a) To implement the pilot program established in chapter 28.10 of title 21, there is

hereby created within the office of the governor the office of cannabis coordination, the head of

which is the director of the office of cannabis coordination. Subject to available appropriations,

the director of the office shall be assisted by a deputy director and a staff to fulfill the office's

mission.

     (b) The office of cannabis coordination shall coordinate the executive branch response to

the regulation of cannabis as directed by the governor. The coordination of the executive branch

response includes, but is not limited to, strategic planning, coordination and approval of

regulations, educational content, planning and implementation, community engagement, budget

coordination, data collection and analysis functions, and any other duties deemed necessary and

appropriate by the director of the office of cannabis coordination or the governor to carry out the

provisions of this chapter.

LC000710 - Page 10 of 87

     (c) In furtherance of coordinating the oversight of the adult use cannabis pilot program

and adult use medical cannabis across state agencies, the office of cannabis coordination shall:

     (1) Coordinate with the directors and staff of each state agency regarding the agency's

promulgation and implementation of rules on adult use and medical cannabis with the objective

of producing positive economic, public safety, and health outcomes for the state and its citizens;

     (2) Offer guidance to and communicate with municipal officials regarding the

implementation and enforcement of this chapter;

     (3) Align all policy suggestions and the promulgation of rules across state agencies to

increase efficiency and eliminate unintended negative impacts on the state and its citizens;

     (4) Communicate with regulatory officials from other states that allow cannabis for adult

use to learn from the experiences of those states;

     (5) Anticipate, prioritize, and respond to emerging issues with the regulation of cannabis;

     (d) The office of cannabis coordination shall have final approval authority for all

guidelines, rules, and regulations pertaining to the implementation and enforcement of this

chapter.

     21-28.11-4. Registration of cannabis establishments.

     Except as otherwise provided in this chapter:

     (1) A person or an entity may apply, in accordance with the provisions of this chapter and

the regulations adopted pursuant thereto, for the issuance of a registration for operating as a

retailer or cannabis testing facility pursuant to the provisions of this chapter.

     (2) As directed by the office of cannabis coordination, the department of business

regulation shall have authority to issue registrations to cannabis cultivators, cannabis retailers,

and cannabis processors consistent with the provisions set forth in this chapter.

     (3) As directed by the office of cannabis coordination, the department of health shall have

authority to issue registrations to cannabis testing facilities.

     (4) Subject to the provisions set forth in this chapter, in order to determine which entities

are to be issued registrations for cannabis establishments, the office of cannabis coordination, in

coordination with the department of business regulation and the department of health, shall:

     (i) Set forth the procedures for entities to submit applications to become registered

cannabis establishments, including the content and form for applications;

     (ii) Require remittance of an application fee, which may not exceed five thousand dollars

($5,000);

     (iii) Establish minimum qualifications for registration that are directly and demonstrably

related to the operation of retailers, and cannabis testing facilities;

LC000710 - Page 11 of 87

     (iv) Set forth procedures to issue registrations to applicants that meet the minimum

qualifications specified by the office of cannabis coordination.

     (5) The department of business regulation may not issue a cannabis cultivation facility,

cannabis processor, or retailer registration to any entity that operates or exercises ownership,

management, or other control over a cannabis testing facility.

     (6) If any person has had an application approved by the department of business

regulation on or before January 2, 2019 to be licensed as a cultivator pursuant to § 21-28.6-16,

that person shall be:

     (i) Deemed a registered cannabis cultivation facility under the adult use cannabis pilot

program; and

     (ii) Deemed a registered cannabis processor under the adult use cannabis pilot program.

     (7) Any person deemed a registered cannabis cultivation facility or a registered cannabis

processor pursuant to subsections (6)(i) and (6)(ii) of this section is required to register with the

department of business regulation and must adhere to all provisions pursuant to chapter 28.6 of

title 21 and all regulations related to medical marijuana adopted by the office of cannabis

coordination, the department of business regulation, or the department of health, including, but

not limited to, the regulations promulgated by the department of business regulation pursuant to §

21-28.6-16(d) regarding how many marijuana plants, how many marijuana seedlings, how much

wet marijuana, and how much usable marijuana a licensed cultivator may possess. This chapter

shall not affect the licensure status of a cultivator pursuant to § 21-28.6-16.

     (8) Any operation of a registered cannabis cultivation facility or a registered cannabis

processor pursuant to subsections (6)(i) and (6)(ii) of this section shall be located at the single

location within the approved square footage that is registered with the department of business

regulation and the department of public safety pursuant to § 21-28.6-16(i).

     (9) The members of the board of directors or controlling interest owners for compassion

centers registered pursuant to § 21-28.6-12 shall create a separate and distinct for-profit entity or

entities for the registration and operation of any cannabis cultivation facility, cannabis processor,

and retailer. Such entities created pursuant to this subsection shall be:

     (i) Deemed a registered cannabis cultivation facility under the adult use cannabis pilot

program;

     (ii) Deemed a registered cannabis processor under the adult use cannabis pilot program;

and

     (iii) Deemed a registered retailer under the adult use cannabis pilot program.

     (10) Any person that is deemed a registered cannabis cultivation facility, a registered

LC000710 - Page 12 of 87

cannabis processor and/or a registered retailer pursuant to subsections (9)(i), (9)(ii) and (9)(iii) of

this section is required to register with the department of business regulation and adhere to all

provisions pursuant to chapter 28.6 of title 21 and all regulations related to medical cannabis

adopted by the office of cannabis coordination, the department of business regulation, or the

department of health.

     (11) Any person that is deemed a registered cannabis cultivation facility and/or a

registered cannabis processor pursuant to subsections (9)(i) and (9)(ii) of this section is permitted

to operate as a cannabis cultivation facility and as a cannabis processor at its current location and

at one additional location under those registrations. This section shall not affect the cultivation

and/or processing of medical marijuana pursuant to § 21-28.6-12 at the compassion center’s

physical address registered with the department of business regulation on or before January 2,

2019, and/or any additional location permitted by § 21-28.6-12.

     (12) Any person that is deemed a registered retailer pursuant to subsection (9)(iii) of this

section is permitted to operate as a retailer at the physical address registered with the department

of business regulation on or before January 2, 2019, for the compassion center and one additional

location. This section shall not affect the sale and/or provision of medical marijuana pursuant to §

21-28.6-12 at the compassion center’s physical address registered with the department of business

regulation on or before January 2, 2019.

     (13) In addition to the retailer locations permitted in subsection (12) of this section, the

department of business regulation may issue additional retailer registrations pursuant to the

application process set forth in § 21-28.11-8(5).

     (14) Any person that is deemed a registered cannabis cultivation facility or a registered

cannabis processor pursuant to subsections (6)(i), (6)(ii), (9)(i) and (9)(ii) of this section shall

allocate ten percent (10%) of its usable cannabis to the medical marijuana program pursuant to

chapter 28.6 of title 21.

     (15) The department of health may not issue a cannabis testing facility registration to any

applicant that operates or exercises ownership, management, or other control over a cannabis

cultivation facility, compassion center, cannabis product manufacturing facility, or retailer, or that

shares joint ownership or management with any cultivation facility, compassion center, cannabis

product manufacturing facility, or retailer.

     (16) The office of cannabis coordination shall determine an annual registration fee, not to

exceed one hundred thousand dollars ($100,000) for cannabis processors and cannabis cultivation

facilities, not to exceed fifty thousand dollars ($50,000) for cannabis retailers, and not to exceed

ten thousand dollars ($10,000) for cannabis testing facilities. The registration fee must be paid

LC000710 - Page 13 of 87

upon the initial issuance of the registration and every twelve (12) months thereafter. If the

registration fee is not remitted to the state in a timely manner, the registration shall be revoked.

     (17) The office of cannabis coordination shall set forth procedures to require all owners

and investors with a five-percent (5%) or greater financial stake in the operation of a proposed

cannabis establishment to undergo a national background check conducted by the office of the

attorney general, the state police, a local police department, or some other agency approved by

the office of cannabis coordination. An application for a cannabis establishment registration may

be rejected if a background check of an owner or investor reveals past offenses that the office of

cannabis coordination deems to be disqualifying, except that any nonviolent cannabis offense

involving one pound (1lb) or less of cannabis, or an equivalent amount pursuant to regulations

promulgated by the department of health, or three (3) or fewer cannabis plants which was

committed prior to the effective date of this chapter shall not be considered disqualifying.

     (18) Whenever an entity seeks to renew a registration as a cannabis establishment, the

office of cannabis coordination shall require the renewal application to include a question

regarding any Occupational Safety and Health Administration actions. The office of cannabis

coordination shall consider whether additional regulations are necessary to address any such

actions in light of worker safety concerns.

     (19) Nothing in this section shall prohibit an entity holding a registration or seeking a

registration as a cannabis cultivation facility, cannabis processor, or retailer from also holding a

separate registration or seeking a separate registration for another cannabis cultivation facility,

cannabis processor, or retailer.

     (20) Nothing in this section shall prohibit an entity holding a registration or seeking a

registration as a cannabis cultivation facility, cannabis processor, or retailer from also holding a

registration as a compassion center or licensed cultivator or seeking a registration to operate as a

compassion center under § 21-28.6-12 or a licensed cultivator under § 21-28.6-16.

     (21) A registered cannabis cultivation facility, cannabis processor, cannabis testing

facility and retailer may transfer ownership and the registration(s) to any person that meets the

requirements of chapter 28.11 of title 21.

     21-28.11-5. Ineligibility for registration.

     (a) A cannabis establishment may not operate, and a prospective cannabis establishment

may not apply for a registration, if any of the following are true:

     (1) The entity is applying for a registration to operate as a cannabis establishment, and the

establishment would operate in a location that would violate regulations adopted by the office of

cannabis coordination pursuant to §§ 21-28.11-7(p) and 21-28.11-7(q); or

LC000710 - Page 14 of 87

     (2) The establishment would be located at a site that is not designated as either an

industrial, commercial, manufacturing, horticultural, pharmaceutical, or agricultural zone or if the

proposed location would violate a municipality's zoning ordinance; or

     (3) The establishment would be located in a municipality in which residents have

approved, by a simple majority referendum, a ban on the kind of cannabis establishment being

proposed. For purpose of illustration but not limitation, a cannabis retailer may not operate in a

municipality in which residents have approved by a simple majority referendum a ban on

cannabis retailers.

     (b) Prior to July 1, 2021, no applicant may operate or apply for registrations to operate

more than:

     (1) Two (2) retailers;

     (2) Two (2) cannabis cultivation facilities; and

     (3) Two (2) cannabis processors.

     (c) For the purpose of this section, the term "applicant" includes an investor owning ten

percent (10%) or greater of the business, all members of the board of directors, members of the

LLC, or partners in the business, and all officers or other managerial employees. It does not

include non-managerial employees.

     (d) For the purpose of this section, the term "operate" includes owning ten percent (10%)

or greater of the business, serving as a member of the board of directors, being a member of an

LLC, being a partner in the business, or acting as an officer or other managerial employee. It does

not include working as a non-managerial employee.

     21-28.11-6. Suspension or termination of registration.

     The department of business regulation or department of health may suspend or terminate

the registration of a cannabis establishment that it issued a registration to if the cannabis

establishment commits violations of this chapter, regulations issued pursuant to it, or any other

state or local law.

     21-28.11-7. Regulation and control of cannabis establishments.

     (a) With input from other governmental agencies, the office of cannabis coordination, the

department of business regulation, and the department of health shall adopt all regulations

necessary and convenient to carry out and administer provisions in this chapter.

     (b) The advertisement of cannabis and cannabis products is prohibited with the following

exceptions:

     (1) A registered cannabis establishment may maintain a website advertising cannabis,

cannabis products, and cannabis paraphernalia, including the prices of those items; provided, the

LC000710 - Page 15 of 87

website requires the user to verify that they are twenty-one (21) years of age or older before

entering.

     (2) A registered cannabis establishment may display signage outside its facility

displaying the name of the establishment; provided, the signage conforms to all applicable local

guidelines and rules and does not display imagery of a cannabis leaf or the use of cannabis.

     (3) A registered cannabis establishment may be listed in public phonebooks.

     (4) A registered cannabis establishment and its logo may be listed as a sponsor of a

charitable event; provided, the logo does not contain imagery of a cannabis leaf or the use of

cannabis.

     (c) The office of cannabis coordination and the department of business regulation shall

adopt regulations that specify acceptable forms of packaging for cannabis and cannabis products,

including, but not limited to, requirements that the packaging be:

     (1) Opaque; and

     (2) Constructed to be significantly difficult for children under five (5) years of age to

open and not difficult for normal adults to use properly as defined by 16 C.F.R. 1700.20 (1995);

and

     (3) Designed in a way that is not deemed as especially appealing to children.

     (d) The office of cannabis coordination and the department of business regulation shall

adopt regulations specifying the content of mandatory labels that must be affixed to all packages

containing cannabis or cannabis products at the time of sales. These regulations shall include, but

are not limited to, requirements that the label display:

     (1) The name of the establishment that cultivated the cannabis or produced the cannabis

product;

     (2) The tetrahydrocannabinol (THC) content of the product;

     (3) A "produced on" date; and

     (4) Warnings that state: "Consumption of cannabis impairs your ability to drive a car or

operate machinery" and "Keep away from children" and, unless federal law has changed to

accommodate cannabis possession, "Possession of cannabis is illegal under federal law and in

many states outside of Rhode Island."

     (e) All cannabis establishments are required to utilize an inventory tracking system,

approved by the department of business regulation that tracks all cannabis from either seed or

immature plant stage up to and including the point of sale.

     (f) The office of cannabis coordination shall establish security requirements and

regulations for all cannabis establishments to prevent theft and diversion. Security requirements

LC000710 - Page 16 of 87

for cannabis establishments shall include, but are not limited to:

     (1) An alarm system, with a backup power source, that alerts security personnel and local

law enforcement officials of any unauthorized breach;

     (2) Perpetual video surveillance system, with a backup power source, that records video

surveillance, must be stored for at least two (2) months and be accessible to law enforcement

officials upon request;

     (3) Protocols that ensure the secure transport, delivery, and storage of cannabis and

cannabis products; and

     (4) Additional security measures to protect against diversion or theft of cannabis from

cannabis cultivation facilities that cultivate cannabis outdoors.

     (g) All employees of cannabis establishments must participate in a comprehensive

training program on standard operating procedures, security protocols, health and sanitation

standards, workplace safety, and the provisions of this chapter prior to working at the

establishment. Employees must be retrained on an annual basis, or if state officials discover a

cannabis establishment in violation of any rule, regulation, or guideline in the course of regular

inspections or audits.

     (h) While performing duties related to their role as an agent or employee of a cannabis

establishment, individuals must wear unique identification badges displaying their name and

photo.

     (i) Any individual that is an agent, employee, partner, owner, or manager for a cannabis

establishment must be twenty-one (21) years or age or older.

     (j) In coordination with the office of cannabis coordination, the department of business

regulation and the division of taxation in the department of revenue shall have the authority to

collect fees and taxes levied on cannabis, and shall adopt procedures for the collection of all taxes

and fees levied on cannabis.

     (k) The office of cannabis coordination, the department of business regulation, and the

department of health shall have the authority to inspect and audit cannabis establishments and

shall adopt procedures for the regular inspection and audit of cannabis establishments.

     (l) Under the direction of the office of cannabis coordination, the department of

environmental management shall set forth regulations governing the allowable uses of pesticides

for the cultivation of cannabis. The department of environmental management shall adopt

procedures to regularly inspect cannabis cultivation facilities to ensure that these regulations are

followed. Any cannabis cultivation facility found to be in violation of these regulations shall be

considered in violation of this chapter.

LC000710 - Page 17 of 87

     (m) The office of cannabis coordination and the department of health shall set forth

regulations for the operation of cannabis testing facilities, including requirements for equipment,

training, and qualifications for personnel. These regulations shall set forth procedures that require

random sample testing to ensure quality control, including, but not limited to, ensuring that

cannabis and cannabis products are accurately labeled for tetrahydrocannabinol (THC) content.

The testing analysis must also include testing for residual solvents, poisons, or toxins; harmful

chemicals; dangerous molds or mildew; filth; and harmful microbials such as E. coli or

salmonella, and pesticides.

     (n) Before being made available for purchase at retailer establishments, all cannabis and

cannabis products must undergo random sample testing at a registered cannabis testing facility, or

other laboratory equipped to test cannabis and cannabis products that has been approved by the

office of cannabis coordination.

     (o) In coordination with the department of business regulation and department of health,

the office of cannabis coordination shall adopt regulations regarding edible cannabis products.

Prior to selling edible cannabis products to cannabis retailers, cannabis processors must submit a

proposal, which shall include photographs of the proposed product properly packaged and

labeled, and any other materials deemed necessary by the office of cannabis coordination, to the

office of cannabis coordination for each line of edible cannabis products. The office of cannabis

coordination shall develop standards to prohibit cannabis products that pose public health risks,

that are easily confused with existing non-cannabis products, or that are especially attractive to

youth. Upon receipt of a proposal for an edible cannabis product line, the office of cannabis

coordination shall have up to ninety (90) days to deny the product proposal if it conflicts with the

cannabis product standards. Retailers and cannabis processors may only sell cannabis products

that have completed this review process. Additional regulations adopted by the office of cannabis

coordination regarding edible cannabis products shall include, but are not limited to:

     (1) A determination of the amount of tetrahydrocannabinol (THC) that constitutes a

single serving in an edible cannabis product; and

     (2) A requirement that separable edible cannabis products be individually packaged and

contain no more than a single serving of tetrahydrocannabinol (THC) as defined in regulations

adopted by the office of cannabis coordination.

     (p) The office of cannabis coordination shall adopt regulations regarding allowable

locations for cannabis establishments. Such regulations may include, but are not limited to,

zoning restrictions and/or minimum distances from public or private preschools, primary schools,

elementary schools, or secondary schools.

LC000710 - Page 18 of 87

     (q) The office of cannabis coordination shall establish penalties for cannabis

establishments that violate approved rules and regulations, which may include fines and/or

revocation of registrations for violations of this chapter or regulations adopted pursuant thereto.

     (r) The department of business regulation shall set forth procedures and a fee, not to

exceed fifty dollars ($50.00), for individuals twenty-one (21) years or older to purchase unique

identifier cannabis plant tags, which must be affixed to any cannabis plant grown by an individual

in a residential space.

     21-28.11-8. Timeline for implementation of this chapter.

     (1) The governor shall establish the office of cannabis coordination and appoint the

director of the office of cannabis coordination no later than two (2) months after the effective date

of this chapter.

     (2) The office of cannabis coordination shall coordinate with the department of business

regulation to set forth procedures for the applications for the issuance of registrations for cannabis

retail establishments and minimum requirements for the operation of cannabis retailers no later

than five (5) months after the effective date of this chapter. Cannabis cultivation facilities,

cannabis processors, and retailers deemed registered pursuant to §§ 21-28.11-4(6) and (9) shall

not be required to submit an application for issuance of registration.

     (3) The office of cannabis coordination shall coordinate with the department of health to

set forth procedures for the application for and issuance of registrations for cannabis testing

facilities and minimum requirements for the operation of cannabis testing facilities no later than

five (5) months after the effective date of this chapter.

     (4) On the effective date of this chapter, any person that is deemed a registered retailer

pursuant to § 21-28.11-4(9)(iii) may register as a retailer with the department of business

regulation. Within one month of such registration, the department shall issue a retailer registration

to that person if it is in compliance with all applicable rules and regulations.

     (5) No later than six (6) months after the effective date of this chapter, the department of

business regulation shall begin accepting applications for retailer registrations, including from

applicants who are not authorized representatives of properly registered compassion centers.

     (6) Any person that is deemed a registered cannabis cultivation facility pursuant to §§ 21-

28.11-4(6)(i) and (9)(i) may register a cannabis cultivation facility with the department of

business regulation. Within one month of such registration, the department of business regulation

shall issue a cannabis cultivation facility registration to that person if it is in compliance with all

applicable rules and regulations.

     (7) No later than five (5) months after the effective date of this chapter, the office of

LC000710 - Page 19 of 87

cannabis coordination shall coordinate with the department of health to adopt regulations

regarding infused cannabis products and edible cannabis products pursuant to § 21-28.11-7(o).

     (8) Any person that is deemed a registered cannabis cultivation facility or registered

cannabis processor facility pursuant to §§ 21-28.11-4(6)(i) and (6)(ii) shall register as a cannabis

processor with the department of business regulation. Within one month of such registration, the

department of business regulation shall issue a cannabis processor registration to that person if it

is in compliance with all applicable rules and regulations.

     (9) Beginning five (5) months after the effective date of this chapter, the department of

health shall accept applications to operate a cannabis testing facility.

     (10) The department of health shall grant a one year registration to at least two (2)

cannabis testing facilities within six (6) months of the effective date of this chapter.

     (11) The department of health shall grant a one year registration to a total of at least five

(5) cannabis testing facilities within twelve (12) months of the effective date of this chapter,

provided a sufficient number of qualified applicants exist.

     (12) If at any time after two (2) years after the effective date of this chapter, there are

fewer than ten (10) valid cannabis testing facility registrations, the department of health shall

accept and process applications for cannabis testing facility registrations.

     21-28.11-9. Municipal control over cannabis establishments.

     (a) Municipalities shall have the authority to enact ordinances or regulations not in

conflict with this chapter or with rules and regulations adopted by the office of cannabis

coordination regulating the time, place, and manner of cannabis establishments' operations.

     (b) Prior to January 1, 2021, municipalities may prohibit specific classes of cannabis

establishments from operating within their jurisdiction. On or after January 1, 2021,

municipalities may not maintain or impose such prohibitions unless the residents of the

municipality have approved, by a simple majority referendum in the course of regularly

scheduled election, a proposal to ban cannabis cultivation facilities, retailers, processors, or

cannabis testing facilities. Municipalities must hold separate referenda to ban each class of

cannabis establishment. A single question to ban all classes of cannabis establishments shall not

be permitted.

     (c) Municipalities may impose civil and criminal penalties on the violation of ordinances

enacted pursuant to this section.

     21-28.11-10. Transportation of cannabis.

     The office of cannabis coordination shall set forth regulations and procedures to facilitate

the secure transportation of cannabis for retailers delivering products to purchasers and shipments

LC000710 - Page 20 of 87

of cannabis or cannabis products between cannabis establishments.

     21-28.11-11. Minors on the premises of cannabis establishments.

     (a) A cannabis establishment shall not allow any person who is under twenty-one (21)

years of age to be present inside any room where cannabis or cannabis products are stored,

produced, or sold by the cannabis establishment unless the person who is under twenty-one (21)

years of age is:

     (1) A government employee performing their official duties;

     (2) An elected official, a member of the media, a contractor performing labor that does

not include cannabis cultivation, manufacturing, packaging, or processing; or

     (3) If the cannabis establishment is a retailer, a medical cannabis patient registered

pursuant to chapter 28.6 of title 21, if the retailer premises are also registered as a compassion

center pursuant to § 21-28.6-12, and the individual under twenty-one (21) years of age is a

qualifying patient registered under chapter 28.6 of title 21.

     (b) Except as otherwise provided in this section, in a prosecution for a violation of this

section, it is an absolute defense that before allowing a person who is under twenty-one (21) years

of age into the room where cannabis is sold or stored, a staff member for the cannabis

establishment was shown a document which appeared to be issued by an agency of a federal,

state, tribal, or foreign sovereign government and which indicated that the person who was

allowed onto the premises of the cannabis establishment was twenty-one (21) years of age or

older at the time the person was allowed onto the premises. The absolute defense set forth in this

subsection does not apply if:

     (1) The document which was shown to the person who allowed the person who is under

twenty-one (21) years of age onto the premises of the retailer was counterfeit, forged, altered, or

issued to a person other than the person who was allowed onto the premises of the retailer; and

     (2) Under the circumstances, a reasonable person would have known or suspected that the

document was counterfeit, forged, altered, or issued to a person other than the person who was

allowed onto the premises.

     21-28.11-12. Retailer violations.

     (a) A retailer shall not:

     (1) Sell, give, deliver, or otherwise furnish cannabis, cannabis products, or cannabis

paraphernalia to any person who is under twenty-one (21) years of age unless the individual

under twenty-one (21) years of age is a qualifying patient registered under chapter 28.6 of title 21.

     (i) The following documents shall serve as acceptable forms of identification for the

purpose of proving an individual’s age: an armed service identification card, valid passport, the

LC000710 - Page 21 of 87

identification card license, or any other documentation used for identification purposes that may

belong to any other person who is twenty-one (21) years or older; a motor vehicle operator's

license which bears the date of birth of the licensee, and which is issued by this state or any other

state.

     (ii) If the retailer discovers evidence that the document presented to verify a person’s age

is inaccurate or falsified in any way to misrepresent the age of the person attempting to purchase

cannabis or cannabis products, they shall refuse to sell cannabis or cannabis products to that

individual and notify law enforcement officials.

     (iii) Except where regulations attendant to this chapter specifically modify or provide

otherwise, rules similar to the rules set forth § 3-8-6, applying to alcohol retailers, shall apply to

cannabis retailers.

     (iv) Proof of good faith reliance on any misrepresentation is a defense to the prosecution

of the retailer and/or the retailer’s employer an alleged violation of this section.

     (2) Sell, give, deliver, or otherwise furnish cannabis or cannabis products to any person

who is twenty-one (21) years of age or older unless the cannabis or cannabis products have

undergone random sample testing for potency and contaminants at a cannabis testing facility or

other laboratory equipped to test cannabis and cannabis products that has been approved by the

office of cannabis coordination.

     (3) Except as provided in this section, sell, deliver, give, or otherwise furnish more than

the following quantities of cannabis or cannabis products to a person in a single transaction;

     (i) One ounce (1 oz.) of cannabis, not including hashish;

     (ii) Two (2) immature cannabis plants; or

     (iii) Cannabis products containing three hundred milligrams (300mg) of delta-9-

tetrahydrocannabinol.

     (4) Except as provided in this section, knowingly and willfully sell, give, or otherwise

furnish an amount of cannabis to a person that would cause that person to possess more than the

quantities set forth in subsection (3) of this section.

     (5) Purchase cannabis from any person other than a cannabis cultivation facility or

retailer.

     (6) Purchase cannabis products from any person other than a cannabis processor.

     (7) Violate regulations issued by the office of cannabis coordination.

     (8) Offer customers special deals, coupons, or giveaways that allow avoidance of

cannabis taxes. Except as otherwise provided by regulation, the tax levied under this subsection

shall apply to the full price, if non-itemized, of any transaction involving both:

LC000710 - Page 22 of 87

     (i) Cannabis or cannabis products; and

     (ii) Any other otherwise distinct and identifiable goods or services.

     (b) The prohibitions on dispensing cannabis in subsections (a)(2) and (a)(3) of this

section do not apply in instances where the retailer holds a valid registration as a compassion

center under chapter 28.6 of title 21, and has verified that the person is a qualifying patient or

primary caregiver registered under chapter 28.6 of title 21 and the amount of cannabis dispensed

is within the qualifying patient's limits.

     (c) In addition to any other penalty provided pursuant to specific statutes, a retailer who

violates this section is guilty of a misdemeanor and shall be punished by a fine of not more than

one thousand dollars ($1,000).

     21-28.11-13. Cannabis cultivation facility violations.

     (a) A cannabis cultivation facility shall not:

     (1) Manufacture, sell give away or otherwise distribute cannabis products; or

     (2) Sell, deliver, give away, or otherwise furnish cannabis products to any person other

than a cannabis retailer or an agent or staff member acting on behalf of a cannabis retailer;

     (3) Purchase cannabis from any person other than a cannabis cultivation facility; or

     (4) Purchase or sell, deliver, give, or otherwise furnish cannabis products in any manner

other than as is exempted from state penalties pursuant to the provisions of this chapter and any

regulations adopted pursuant thereto.

     (b) In addition to any other penalty provided pursuant to specific statutes, a person who

violates this section is guilty of a misdemeanor and shall be punished by a fine of not more than

one thousand dollars ($1,000).

     21-28.11-14. Cannabis processor facility violations.

     (a) A cannabis processor facility shall not:

     (1) Manufacture, cultivate, or produce cannabis;

     (2) Sell, deliver, give away, or otherwise furnish cannabis products to any person other

than a cannabis retailer or an agent or staff member acting on behalf of a cannabis retailer;

     (3) Purchase cannabis from any person other than a cannabis cultivation facility; or

     (4) Purchase or sell, deliver, give, or otherwise furnish cannabis products in any manner

other than as is exempted from state penalties pursuant to the provisions of this chapter and any

regulations adopted pursuant thereto.

     (b) In addition to any other penalty provided pursuant to specific statutes, a person who

violates this section is guilty of a misdemeanor and shall be punished by a fine of not more than

one thousand dollars ($1,000).

LC000710 - Page 23 of 87

     21-28.11-15. Wholesale Tax.

     Imposition of wholesale tax on cannabis cultivation facilities and cannabis processors.

     (a) Except as provided for in subjection (b) of this section, a wholesale tax at a rate of

five percent (5%) shall be imposed on all gross revenue from the wholesale of cannabis, cannabis

products, seedlings and cuttings from a registered cannabis cultivator facility and/or registered

cannabis processor to a registered retailer.

     (b) The wholesale tax does not apply to medical cannabis sales from a licensed cultivator

to a registered compassion center pursuant to § 21-28.6-12 or registered compassion center to a

registered qualifying patient or a registered primary caregiver pursuant to § 21-28.6-12.

     (c) Under the direction of the office of cannabis coordination, the division of taxation

shall have the authority to collect the proceeds of the wholesale tax on retail cannabis sales and

disburse the funds to the cannabis regulation fund pursuant to § 21-28.11-17.

     21-28.11-16. Excise tax.

     Imposition of excise tax on retail cannabis sales.

     (a) Except as provided for in subsection (b) of this section, an excise tax at a rate of ten

percent (10%) of the sales price, in addition to the standard sales tax imposed by § 44-18-18, shall

be imposed on all retail sales of cannabis, cannabis products, seedlings, and cuttings.

     (b) The excise tax does not apply to medical cannabis sales from a registered compassion

center to a registered qualifying patient or a registered primary caregiver pursuant to § 21-28.6-

12.

     (c) Under the direction of the office of cannabis coordination, the division of taxation

shall have the authority to collect the proceeds of the excise tax on retail cannabis sales and

disburse the funds to the cannabis regulation fund pursuant to § 21-28.11-17.

     21-28.11-17. Restricted receipt account and distribution of funds.

     (a) Fees and taxes collected pursuant to this chapter shall be deposited in a restricted

receipt account entitled "cannabis regulation fund."

     (b) The amounts on deposit in the account for receipts of cannabis excise taxes and fees

shall be disbursed in the following manner:

     (1) In the 2019 fiscal year budget and every fiscal year budget thereafter, the governor

shall submit a budget to the general assembly to appropriate funds from the cannabis regulation

fund to provide for all necessary expenses incurred by the office of cannabis coordination, the

department of business regulation, the department of health, the division of taxation, and the

department of environmental management in the performance of their duties pursuant to this

chapter.

LC000710 - Page 24 of 87

     (2) After sufficient funds are appropriated from the cannabis regulation fund to provide

for the expenses related to implementation and regulatory enforcement of this chapter, seventy-

five percent (75%) of remaining funds shall be deposited into the state's general fund and ten

percent (10%) shall be disbursed to municipalities, proportional to the total number of cannabis

establishments in each municipality. Five percent (5%) shall be disbursed to the state and local

police for the purpose of enforcing laws against impaired driving and training additional law

enforcement officers to become drug recognition experts. Ten percent (10%) shall be disbursed to

the department of behavioral healthcare, developmental disabilities and hospitals, which shall

distribute funding to various programs and agencies for the purpose of providing substance use

disorder treatment and recovery services as well as programming for youth substance use

prevention.

     21-28.11-18. Contracts enforceable.

     It is the public policy of the state that contracts related to the operation of a cannabis

establishment, compassion center, or hemp cultivator registered pursuant to Rhode Island law

shall be enforceable. It is the public policy of the state that no contract entered into by a registered

cannabis establishment or hemp cultivator or its employees or agents as permitted pursuant to a

valid registration with a department of the state, or by those who allow property to be used by an

establishment, its employees, or its agents as permitted pursuant to a valid registration, shall be

unenforceable on the basis that cultivating, obtaining, manufacturing, distributing, dispensing,

transporting, selling, possessing, or using cannabis or hemp is prohibited by federal law.

     21-28.11-19. Compassion center registrants.

     (a) Each cannabis establishment that is at the same location as a compassion center must:

     (1) Follow all provisions pursuant to chapter 28.6 of title 21, and all regulations related to

medical cannabis adopted by the office of cannabis coordination, the department of business

regulation, or the department of health;

     (2) Separate all inventory that is offered for sale or donation to medical cannabis

cardholders pursuant to chapter 28.6 of title 21 from cannabis and cannabis products that are

offered for sale to adult consumers;

     (3) Label all cannabis and cannabis products that are offered for sale to adult consumers

pursuant to § 21-28.6-12 with "Retail cannabis - for use by adults 21 and older only."

     (b) For purposes of this section, "adult consumer" means a person who is twenty-one (21)

years of age or older and who is not a medical cannabis cardholder obtaining medical cannabis

from a compassion center pursuant to chapter 28.6 of title 21.

     21-28.11-20. Failure of department to adopt regulations.

LC000710 - Page 25 of 87

     If the office of cannabis coordination fails to adopt regulations to implement this chapter,

or fails to begin processing applications for cannabis establishments within twelve (12) months of

the effective date of this chapter, any citizen may commence an action in a court of competent

jurisdiction to compel the office of cannabis coordination to perform the actions mandated

pursuant to the provisions of this chapter.

     21-28.11-21. Severability.

     If any provision of this chapter or its application thereof to any person or circumstance is

held invalid, such invalidity shall not affect other provisions or applications of this chapter, which

can be given effect without the invalid provision or application, and to this end the provisions of

this chapter are declared to be severable.

     SECTION 2. Sections 21-28-4.1, 21-28-4.1.1 and 21-28-4.1.2 of the General Laws in

Chapter 21-28 entitled "Uniform Controlled Substances Act" are hereby amended to read as

follows:

     21-28-4.01. Prohibited acts A -- Penalties.

     (a)(1) Except as authorized by this chapter or exempted from annual penalties pursuant to

chapters 28.10 or 28.11 of title 21, it shall be unlawful for any person to manufacture, deliver, or

possess with intent to manufacture or deliver a controlled substance.

     (2) Any person who is not a drug-addicted person, as defined in § 21-28-1.02(20), who

violates this subsection with respect to a controlled substance classified in schedule I or II, except

the substance classified as marijuana, is guilty of a crime and, upon conviction, may be

imprisoned to a term up to life or fined not more than five hundred thousand dollars ($500,000)

nor less than ten thousand dollars ($10,000), or both.

     (3) Where the deliverance as prohibited in this subsection shall be the proximate cause of

death to the person to whom the controlled substance is delivered, it shall not be a defense that

the person delivering the substance was, at the time of delivery, a drug-addicted person as defined

in § 21-28-1.02(20).

     (4) Any person, under twenty-one (21) years of age, except as provided for in subdivision

(2) of this subsection, who violates this subsection with respect to the manufacture of two (2) or

fewer total marijuana plants is guilty of a crime and upon conviction may be imprisoned for not

more than six (6) months, or fined not more than five hundred dollars ($500), or both:

     (5) Any person, except as provided for in subsections (2) or (4) of this section, who

violates this subsection with respect to:

     (i) A controlled substance, classified in schedule I or II, is guilty of a crime and, upon

conviction, may be imprisoned for not more than thirty (30) years, or fined not more than one

LC000710 - Page 26 of 87

hundred thousand dollars ($100,000) nor less than three thousand dollars ($3,000), or both;

     (ii) The manufacture of three (3) or more marijuana plants, is guilty of a crime and upon

conviction may be imprisoned for not more than three (3) years or fined not more than two

thousand five hundred dollars ($2,500) for each plant over the allowed limit of two (2), or both;

     (iii) The delivery of marijuana is guilty of a crime and upon conviction may be

imprisoned for not more than five (5) years or fined not more than one hundred thousand dollars

($100,000), or both;

     (ii) (iv) A controlled substance, classified in schedule III or IV, is guilty of a crime and,

upon conviction, may be imprisoned for not more than twenty (20) years, or fined not more than

forty thousand dollars ($40,000), or both; provided, with respect to a controlled substance

classified in schedule III(d), upon conviction may be imprisoned for not more than five (5) years,

or fined not more than twenty thousand dollars ($20,000), or both.

     (iii) (v) A controlled substance, classified in schedule V, is guilty of a crime and, upon

conviction, may be imprisoned for not more than one year, or fined not more than ten thousand

dollars ($10,000), or both.

     (b)(1) Except as authorized by this chapter, it is unlawful for any person to create,

deliver, or possess with intent to deliver, a counterfeit substance.

     (2) Any person who violates this subsection with respect to:

     (i) A counterfeit substance, classified in schedule I or II, is guilty of a crime and, upon

conviction, may be imprisoned for not more than thirty (30) years, or fined not more than one

hundred thousand dollars ($100,000), or both;

     (ii) A counterfeit substance, classified in schedule III or IV, is guilty of a crime and, upon

conviction, may be imprisoned for not more than twenty (20) years, or fined not more than forty

thousand dollars ($40,000), or both; provided, with respect to a controlled substance classified in

schedule III(d), upon conviction may be imprisoned for not more than five (5) years, or fined not

more than twenty thousand dollars ($20,000), or both.

     (iii) A counterfeit substance, classified in schedule V, is guilty of a crime and, upon

conviction, may be imprisoned for not more than one year, or fined not more than ten thousand

dollars ($10,000), or both.

     (c)(1) It shall be unlawful for any person knowingly or intentionally to possess a

controlled substance, unless the substance was obtained directly from, or pursuant to, a valid

prescription or order of a practitioner while acting in the course of his or her professional

practice, or except as otherwise authorized by this chapter or exempt from arrest by chapters

28.10 or 28.11 of title 21.

LC000710 - Page 27 of 87

     (2) Any person who violates this subsection with respect to:

     (i) A controlled substance classified in schedules I, II and III, IV, and V, except the

substance classified as marijuana, is guilty of a crime and, upon conviction, may be imprisoned

for not more than three (3) years, or fined not less than five hundred dollars ($500) nor more than

five thousand dollars ($5,000), or both;

     (ii) More than one ounce (1 oz.) of a controlled substance classified in schedule I as

marijuana is guilty of a misdemeanor, except for those persons subject to (a)(1), and, upon

conviction, may be imprisoned for not more than one year, or fined not less than two hundred

dollars ($200) nor more than five hundred dollars ($500), or both.

     (iii) Notwithstanding any public, special, or general law to the contrary, the possession of

one ounce (1 oz.) or less of marijuana by a person who is eighteen (18) years of age or older, but

who is less than twenty-one (21) years of age, and who is not exempted from penalties pursuant

to chapter 28.6 of this title, shall constitute a civil offense, rendering the offender liable to a civil

penalty in the amount of one hundred fifty dollars ($150) and forfeiture of the marijuana, but not

to any other form of criminal or civil punishment or disqualification. Notwithstanding any public,

special, or general law to the contrary, this civil penalty of one hundred fifty dollars ($150) and

forfeiture of the marijuana shall apply if the offense is the first (1st) or second (2nd) violation

within the previous eighteen (18) months.

     (iv) Notwithstanding any public, special, or general law to the contrary, possession of one

ounce (1 oz.) or less of marijuana by a person who is seventeen (17) years of age or older and

under the age of eighteen (18) years, and who is not exempted from penalties pursuant to chapter

28.6 of this title, shall constitute a civil offense, rendering the offender liable to a civil penalty in

the amount of one hundred fifty dollars ($150) and forfeiture of the marijuana; provided the

minor offender completes an approved, drug-awareness program and community service as

determined by the court. If the person seventeen (17) years of age or older and under the age of

eighteen (18) years fails to complete an approved, drug-awareness program and community

service within one year of the disposition, the penalty shall be a three hundred dollar ($300) civil

fine and forfeiture of the marijuana, except that if no drug-awareness program or community

service is available, the penalty shall be a fine of one hundred fifty dollars ($150) and forfeiture

of the marijuana. The parents or legal guardian of any offender seventeen (17) years of age or

older and under the age of eighteen (18) shall be notified of the offense and the availability of a

drug-awareness and community-service program. The drug-awareness program must be approved

by the court, but shall, at a minimum, provide four (4) hours of instruction or group discussion

and ten (10) hours of community service. Notwithstanding any other public, special, or general

LC000710 - Page 28 of 87

law to the contrary, this civil penalty shall apply if the offense is the first or second violation

within the previous eighteen (18) months.

     (v) Notwithstanding any public, special, or general law to the contrary, a person who is

less than twenty-one (21) years of age, not exempted from penalties pursuant to chapter 28.6 of

this title found in possession of one ounce (1 oz.) or less of marijuana is guilty of a misdemeanor

and, upon conviction, may be imprisoned for not more than thirty (30) days, or fined not less than

two hundred dollars ($200) nor more than five hundred dollars ($500), or both, if that person has

been previously adjudicated on a violation for possession of less than one ounce (1 oz.) of

marijuana under (c)(2)(iii) or (c)(2)(iv) two (2) times in the eighteen (18) months prior to the third

(3rd) offense.

     (vi) Any unpaid civil fine issued under (c)(2)(iii) or (c)(2)(iv) shall double to three

hundred dollars ($300) if not paid within thirty (30) days of the disposition. The civil fine shall

double again to six hundred dollars ($600) if it has not been paid within ninety (90) days.

     (vii) No person may be arrested for a violation of (c)(2)(iii) or (c)(2)(iv) of this

subsection except as provided in this subparagraph. Any person in possession of an identification

card, license, or other form of identification issued by the state or any state, city, or town, or any

college or university, who fails to produce the same upon request of a police officer who informs

the person that he or she has been found in possession of what appears to the officer to be one

ounce (1 oz.) or less of marijuana, or any person without any such forms of identification who

fails or refuses to truthfully provide his or her name, address, and date of birth to a police officer

who has informed such person that the officer intends to provide such individual with a citation

for possession of one ounce (1 oz.) or less of marijuana, may be arrested.

     (viii) No violation of (c)(2)(iii) or (c)(2)(iv) of this subsection shall be considered a

violation of parole or probation.

     (ix) Any records collected by any state agency, tribunal, or the family court that include

personally identifiable information about violations of (c)(2)(iii) or (c)(2)(iv) shall not be open to

public inspection in accordance with § 8-8.2-21.

     (3) Jurisdiction. Any and all violations of (c)(2)(iii) and (c)(2)(iv) shall be the exclusive

jurisdiction of the Rhode Island traffic tribunal. All money associated with the civil fine issued

under (c)(2)(iii) or (c)(2)(iv) shall be payable to the Rhode Island traffic tribunal. Fifty percent

(50%) of all fines collected by the Rhode Island traffic tribunal from civil penalties issued

pursuant to (c)(2)(iii) or (c)(2)(iv) shall be expended on drug-awareness and treatment programs

for youth.

     (4) Additionally, every person convicted or who pleads nolo contendere under (c)(2)(i) or

LC000710 - Page 29 of 87

convicted or who pleads nolo contendere a second or subsequent time under (c)(2)(ii), who is not

sentenced to a term of imprisonment to serve for the offense, shall be required to:

     (i) Perform up to one hundred (100) hours of community service;

     (ii) Attend and complete a drug-counseling and education program, as prescribed, by the

director of the department of behavioral healthcare, developmental disabilities and hospitals and

pay the sum of four hundred dollars ($400) to help defray the costs of this program which shall be

deposited as general revenues. Failure to attend may result, after hearing by the court, in jail

sentence up to one year;

     (iii) The court shall not suspend any part or all of the imposition of the fee required by

this subsection, unless the court finds an inability to pay;

     (iv) If the offense involves the use of any automobile to transport the substance or the

substance is found within an automobile, then a person convicted or who pleads nolo contendere

under (c)(2)(i) and (c)(2)(ii) shall be subject to a loss of license for a period of six (6) months for

a first offense and one year for each offense after.

     (5) All fees assessed and collected pursuant to (c)(3)(ii) shall be deposited as general

revenues and shall be collected from the person convicted or who pleads nolo contendere before

any other fines authorized by this chapter.

     (d) It shall be unlawful for any person to manufacture, distribute, or possess with intent to

manufacture or distribute, an imitation controlled substance. Any person who violates this

subsection is guilty of a crime and, upon conviction, shall be subject to the same term of

imprisonment and/or fine as provided by this chapter for the manufacture or distribution of the

controlled substance that the particular imitation controlled substance forming the basis of the

prosecution was designed to resemble and/or represented to be; but in no case shall the

imprisonment be for more than five (5) years nor the fine for more than twenty thousand dollars

($20,000).

     (e) It shall be unlawful for a practitioner to prescribe, order, distribute, supply, or sell an

anabolic steroid or human growth hormone for: (1) Enhancing performance in an exercise, sport,

or game, or (2) Hormonal manipulation intended to increase muscle mass, strength, or weight

without a medical necessity. Any person who violates this subsection is guilty of a misdemeanor

and, upon conviction, may be imprisoned for not more than six (6) months or a fine of not more

than one thousand dollars ($1,000), or both.

     (f) It is unlawful for any person to knowingly or intentionally possess, manufacture,

distribute, or possess with intent to manufacture or distribute, any extract, compound, salt

derivative, or mixture of salvia divinorum or datura stramonium or its extracts unless the person

LC000710 - Page 30 of 87

is exempt pursuant to the provisions of § 21-28-3.30. Notwithstanding any laws to the contrary,

any person who violates this section is guilty of a misdemeanor and, upon conviction, may be

imprisoned for not more than one year, or fined not more than one thousand dollars ($1,000), or

both. The provisions of this section shall not apply to licensed physicians, pharmacists, and

accredited hospitals and teaching facilities engaged in the research or study of salvia divinorum or

datura stramonium and shall not apply to any person participating in clinical trials involving the

use of salvia divinorum or datura stramonium.

     21-28-4.01.1. Minimum sentence -- Certain quantities of controlled substances.

     (a) Except as authorized by this chapter, it shall be unlawful for any person to

manufacture, sell, or possess with intent to manufacture or sell, a controlled substance classified

in schedule I or II (excluding marijuana) or to possess or deliver the following enumerated

quantities of certain controlled substances:

     (1) One ounce (1 oz.) to one kilogram (1 kg.) of a mixture or substance containing a

detectable amount of heroin;

     (2) One ounce (1 oz.) to one kilogram (1 kg.) of a mixture or substance containing a

detectable amount of:

     (i) Coca leaves, except coca leaves and extracts of coca leaves from which cocaine,

ecgonine, and derivatives of ecgonine or their salts have been removed;

     (ii) Cocaine, its salts, optical and geometric isomers, and salts of isomers;

     (iii) Ecgonine, its derivatives, their salts, isomers, and salts of isomers; or

     (iv) Any compound, mixture, or preparation that contains any quantity of any of the

substances referred to in paragraphs (i) -- (iii) of this subdivision;

     (3) One gram (1 g.) to ten grams (10 gs.) of phencyclidine (PCP) or one hundred (100) to

one thousand (1,000) tablets of a mixture or substance containing a detectable amount of

phencyclidine (PCP);

     (4) One-tenth of a gram (0.1 g.) to one gram (1 g.) of lysergic acid diethylamide (LSD) or

one hundred (100) to one thousand (1,000) tablets of a mixture or substance containing a

detectable amount of lysergic acid diethylamide (LSD);

     (5) One kilogram (1 kg.) to five kilograms (5 kgs.) of a mixture containing a detectable

amount of marijuana;

     (6) One ounce (1 oz.) to one kilogram (1 kg.) of a mixture or substance containing a

detectable amount of synthetic drugs; or

     (7) One ounce (1 oz.) to one kilogram (1 kg.) of a mixture or substance containing a

detectable amount of fentanyl.

LC000710 - Page 31 of 87

     (b) Any person who violates this section shall be guilty of a crime, and upon conviction,

may be imprisoned for a term up to fifty (50) years and fined not more than five hundred

thousand dollars ($500,000).

     21-28-4.01.2. Minimum sentence -- Certain quantities of controlled substances.

     (a) Except as authorized by the chapter, it shall be unlawful for any person to possess,

manufacture, sell, or deliver the following enumerated quantities of certain controlled substances:

     (1) More than one kilogram (1 kg.) of a mixture or substance containing a detectable

amount of heroin;

     (2) More than one kilogram (1 kg.) of a mixture or substance containing a detectable

amount of:

     (i) Coca leaves, except coca leaves and extracts of coca leaves from which cocaine,

ecgonine, and derivatives of ecgonine or their salts have been removed;

     (ii) Cocaine, its salts, optical and geometric isomers, and salts of isomers;

     (iii) Ecgonine, its derivatives, their salts, isomers, and salts of isomers; or

     (iv) Any compound, mixture, or preparation that contains any quantity of any of the

substances referred to in paragraphs (i) -- (iii) of this subdivision;

     (3) More than ten grams (10 gs.) of phencyclidine (PCP) or more than one thousand

(1,000) tablets of a mixture or substance containing a detectable amount of phencyclidine (PCP);

     (4) More than one gram (1 g.) of lysergic acid diethylamide (LSD); or more than one

thousand (1,000) tablets of a mixture or substance containing a detectable amount of lysergic acid

diethylamide (LSD);

     (5) More than five kilograms (5 kgs.) of a mixture containing a detectable amount of

marijuana;

     (6) More than one kilogram (1 kg.) of a mixture or substance containing a detectable

amount of synthetic drugs; or

     (7) More than one kilogram (1 kg.) of a mixture or substance containing a detectable

amount of fentanyl.

     (b) Any person who violates this section shall be guilty of a crime, and upon conviction,

may be imprisoned for a term up to life and fined not more than one million dollars ($1,000,000).

     SECTION 3. Sections 21-28.6-3 and 21-28.6-12 of the General Laws in Chapter 21-28.6

entitled "The Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act" are hereby

amended to read as follows:

     21-28.6-3. Definitions.

     For the purposes of this chapter:

LC000710 - Page 32 of 87

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

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

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

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

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

shall possesses a valid registry identification card.

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

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

registry identification card or license.

     (3) "Commercial unit" means a building, office, suite, or room within a commercial or

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

person.

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

of chapter 6 of title 7 a business entity, and registered under § 21-28.6-12, that acquires,

possesses, cultivates, manufactures, delivers, transfers, transports, supplies, or dispenses

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

registered caregiver cardholder or authorized purchaser.

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

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

the department of business regulation and has been issued and possesses a valid, registry

identification card.

     (5) "Debilitating medical condition" means:

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

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

these conditions;

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

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

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

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

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

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

provided for in § 21-28.6-5.

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

regulation or its successor agency.

LC000710 - Page 33 of 87

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

agency.

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

its successor agency.

     (9) "Dried, useable marijuana" means the dried leaves and flowers of the marijuana plant

as defined by regulations promulgated by the department of health.

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

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

for living, sleeping, cooking, and eating.

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

edible, concentrated, or any other form, found to be equal to a portion of dried, usable marijuana,

as defined by regulations promulgated by the department of health.

     (12) "Licensed cultivator" means a person, as identified in § 43-3-6, who has been

licensed by the department of business regulation to cultivate marijuana pursuant to § 21-28.6-16.

     (13) "Marijuana" has the meaning given that term in § 21-28-1.02(30).

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

readily observable by an unaided visual examination.

     (15) "Medical marijuana testing laboratory" means a third-party analytical testing

laboratory licensed by the department of health to collect and test samples of medical marijuana

pursuant to regulations promulgated by the department.

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

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

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

associated with the medical condition.

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

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

certification in accordance with regulations promulgated by the department of health or a

physician licensed with authority to prescribe drugs in Massachusetts or Connecticut.

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

old. A primary caregiver may assist no more than five (5) qualifying patients with their medical

use of marijuana.

     (19) "Qualifying patient" means a person who has been diagnosed by a practitioner as

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

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

LC000710 - Page 34 of 87

that identifies a person as a registered qualifying patient, a registered primary caregiver, or

authorized purchaser, or a document issued by the department of business regulation that

identifies a person as a registered principal officer, board member, employee, volunteer, or agent

of a compassion center.

     (21) "Seedling" means a marijuana plant with no observable flowers or buds.

     (22) "Unusable marijuana" means marijuana seeds, stalks, seedlings, and unusable roots.

     (23) "Usable marijuana" means the dried leaves and flowers of the marijuana plant, and

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

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

before they have reached a dry useable state, as defined by regulations promulgated by the

departments of health and business regulation.

     (25) "Written certification" means the qualifying patient's medical records, and a

statement signed by a practitioner, stating that, in the practitioner's professional opinion, the

potential benefits of the medical use of marijuana would likely outweigh the health risks for the

qualifying patient. A written certification shall be made only in the course of a bona fide,

practitioner-patient relationship after the practitioner has completed a full assessment of the

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

debilitating medical condition or conditions.

     21-28.6-12. Compassion centers.

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

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

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

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

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

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

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

business regulation:

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

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

applications for registration certificates for compassion centers, including regulations governing:

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

     (ii) Minimum oversight requirements for compassion centers;

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

     (iv) Minimum security requirements for compassion centers; and

LC000710 - Page 35 of 87

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

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

subsection.

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

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

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

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

to a single compassion center.

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

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

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

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

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

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

compassion center if a qualified applicant exists.

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

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

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

certificates if qualified applicants exist.

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

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

new compassion center.

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

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

applications for a new compassion center.

     (8) If at any time after three (3) years after the effective date of this chapter and on or

before December 31, 2016, fewer than three (3) compassion centers are holding valid registration

certificates in Rhode Island, the department of health shall accept applications for a new

compassion center. If at any time on or after January 1, 2017, fewer than three (3) compassion

centers are holding valid registration certificates in Rhode Island, the department of business

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

compassion centers may hold valid registration certificates at one time.

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

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

LC000710 - Page 36 of 87

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

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

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

passage of this legislation.

     (c) Compassion center and agent applications and registration:

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

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

fifty dollars ($250);

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

center;

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

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

second location for the cultivation of medical marijuana;

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

marijuana;

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

the compassion center;

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

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

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

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

prevention techniques; and

     (vii) Proposed procedures to ensure accurate record keeping;

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

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

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

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

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

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

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

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

would be located.

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

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

LC000710 - Page 37 of 87

limited to, the following factors:

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

centers if the applicant were approved;

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

in the state;

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

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

registration certificate;

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

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

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

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

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

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

location, security devices employed, and staffing;

     (4) A compassion center approved by the department of health on or before December

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

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

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

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

the secure cultivation of marijuana;

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

the compassion center; and

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

or volunteer of the compassion center at its inception.

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

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

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

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

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

the secure cultivation of marijuana;

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

the compassion center;

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

LC000710 - Page 38 of 87

or volunteer of the compassion center at its inception.

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

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

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

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

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

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

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

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

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

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

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

volunteer, or employee;

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

member, agent, volunteer, or employee is affiliated;

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

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

     (v) A photograph, if the department of health or the department of business regulation

decides to require one.

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

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

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

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

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

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

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

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

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

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

conviction.

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

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

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

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

LC000710 - Page 39 of 87

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

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

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

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

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

conviction or a plea of nolo contendere for a felony drug offense with probation has been found.

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

contendere for a felony drug offense with probation has been found, the department of public

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

department of business regulation, in writing, of this fact.

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

associated with the criminal background check with fingerprints.

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

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

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

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

occurs first.

     (9) A compassion center cardholder shall notify and request approval from the

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

card after such notification.

LC000710 - Page 40 of 87

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

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

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

his or her registry identification card after such notification.

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

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

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

     (d) Expiration or termination of compassion center:

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

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

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

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