2019 -- H 6069

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LC002239

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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A N   A C T

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

SLATER MEDICAL MARIJUANA ACT--THE RHODE ISLAND MARIJUANA SOCIAL

EQUITY PROGRAM

     Introduced By: Representatives Williams, Craven, Slater, Vella-Wilkinson, and
Blazejewski

     Date Introduced: May 03, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 21-28.6 of the General Laws entitled "The Edward O. Hawkins and

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

section:

     21-28.6-18. Rhode Island marijuana social equity program - Findings and purpose.

     (1) Marijuana prohibition has had a devastating impact on communities across Rhode

Island and across the United States. Persons convicted of a marijuana-related offense and their

families suffer the long-term consequences of prohibition. These individuals have a more difficult

time entering the newly created adult-use marijuana industries due, in part, to a lack of access to

capital, business space, technical support, and regulatory compliance assistance. In partial

recognition of this, the general assembly decriminalized possession of small amounts of

marijuana in 2013. Since 2006, medicinal use of marijuana has been permitted in Rhode Island.

     (2) During the era of marijuana prohibition in Rhode Island, the burdens of arrests,

convictions, and long-term collateral consequences arising from a conviction related to marijuana

fell disproportionately on Black and Latinx people, even though people of all races used and sold

marijuana at nearly identical rates. A policy report issued by Open Doors in 2010 reported that in

2008, people of color were arrested for possession of marijuana and sentenced to prison at a rate

eight (8) times higher than white persons. A report released by the American Civil Liberties

Union in 2013 found that in Rhode Island in the years 2001 through 2010, black persons were

arrested for marijuana possession at a rate nearly three (3) times the rate of white persons.

Furthermore, a 2015 American Civil Liberties Union of Rhode Island report entitled "The School

to Prison Pipeline in Black and White", identified racial disparities in certain areas of public

interaction with the government specifically in areas of school discipline, racial profiling in traffic

stops, arrest rates, marijuana possession arrests rates and prison representation. The collateral

consequences associated with marijuana law violations, coupled with generational poverty and a

lack of access to resources, made it extraordinarily difficult for persons from areas of poverty that

have been disproportionally harmed by marijuana prohibition, especially persons with

convictions, to enter the newly regulated marijuana industries.

     (3) Offering technical support, regulatory compliance assistance, and assistance with

securing the capital necessary to begin a business in the emerging new marijuana industries will

help to reduce barriers to licensure and employment of persons from areas who have been

disproportionately harmed by marijuana prohibition.

     (4) Offering these supports will also aid the state in eliminating or reducing the illicit

marijuana market by bringing more people into the legal marketplace.

     (5) It is the intent of this act to ensure that persons most harmed by marijuana

criminalization and poverty be offered assistance to enter the marijuana industries as

entrepreneurs or as employees with high quality and well-paying jobs.

     SECTION 2. Sections 21-28.6-5 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:

     21-28.6-5. Department of health to issue regulations.

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

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

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

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

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

after hearing, approve or deny such petitions within one hundred eighty (180) days of submission.

The approval or denial of such a petition shall be considered a final department of health action,

subject to judicial review. Jurisdiction and venue for judicial review are vested in the superior

court. The denial of a petition shall not disqualify qualifying patients with that condition, if they

have a debilitating medical condition as defined in § 21-28.6-3(5). The denial of a petition shall

not prevent a person with the denied condition from raising an affirmative defense.

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

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

applications for, and renewals of, registry identification cards for qualifying patients, primary

caregivers, and authorized purchasers. The department of health's regulations shall establish

application and renewal fees that generate revenues sufficient to offset all expenses of

implementing and administering this chapter. The department of health may vary the application

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

income. The department of health may accept donations from private sources in order to reduce

the application and renewal fees.

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

health and/or the department of business regulation, in consultation with the American Civil

Liberties Union of Rhode Island, shall promulgate regulations, procedures and policies to create a

Rhode Island marijuana social equity program to encourage full participation in the regulated

marijuana industry by people from communities that have previously been and currently are

disproportionately harmed by marijuana prohibition and enforcement and to positively impact

those communities.

     (2) Regulations promulgated pursuant to this subsection shall provide that priority review

resulting in an issuance of fifty percent (50%) of all new compassion center licenses be granted to

qualified applicants residing in communities determined by the department(s) to have been

disproportionately harmed by marijuana prohibition and enforcement.

     (3) Factors that the department(s) shall consider in whether to grant priority review shall

include, but not be limited to;

     (i) Whether majority ownership belongs to people who have lived in areas of

disproportionate impact for five (5) of the last ten (10) years;

     (ii) Whether majority of ownership has held one or more previous positions where the

primary population served were disproportionately impacted, or where primary responsibilities

included economic education, resource provision or empowerment to disproportionately impacted

individuals or communities;

     (iii) Whether at least fifty-one percent (51%) of current employees/sub-contractors reside

in areas of disproportionate impact;

     (iv) Whether a majority of the ownership is made up of individuals from Black, African

American, Hispanic or Latino descent;

     (v) Whether the business owners can demonstrate significant past experience in or

business practices that promote economic empowerment in areas of disproportionate impact. The

business owners shall not be property owners only and shall have an active interest in the

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business itself.

     (4) For purposes of this section, "areas of disproportionate impact" means, any city, town,

community, neighborhood or other area within the state of Rhode Island determined by the

department of health and/or the department of business regulation to be a community

disproportionately harmed by marijuana prohibition and enforcement.

     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

     (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

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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

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.

     (10) Effective July 1, 2019, and thereafter, the department of business regulation shall

issue fifty percent (50%) of all new compassion center or dispensary licenses pursuant to this

chapter to applicants residing in communities that have been disproportionately harmed by

marijuana prohibition and enforcement pursuant to § 21-28.6-5(c).

     (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

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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

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;

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     (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,

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

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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

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

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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.

     (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

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(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

expiration of its registration certificate;

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

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

conditions are all satisfied:

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

(c)(5), including a two hundred fifty thousand dollar ($250,000) fee;

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

chapter or regulations issued pursuant to this chapter; and

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

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

reasonable rates;

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

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

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

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

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

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

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

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

satisfied:

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

yet come to a decision;

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

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

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

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

compassion center:

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

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

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

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

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

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

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

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

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

identification numbers to protect their confidentiality.

     (f) Compassion center requirements:

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

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

Internal Revenue Service;

     (2) A compassion center may not be located within one thousand feet (1,000') of the

property line of a preexisting public or private school;

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

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

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

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

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

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

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

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

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

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

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

with the compassion center;

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

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

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

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

or her relationship with the compassion center;

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

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

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

shall request that the department of public safety division of state police visit the compassion

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

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

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

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

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

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

center's opening.

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

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

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

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

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

or through the qualifying patient's primary caregiver or authorized purchaser.

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

the state of Rhode Island.

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

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

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

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

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

items included but not limited to cannabinoid profile and contaminants.

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

labeling requirements promulgated by the department of business regulation.

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

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

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

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

qualifications, and supervision; and

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

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

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

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

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

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

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

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

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

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

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

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

robbery or violent accident.

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

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

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

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

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

employment or the volunteer's volunteering.

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

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

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

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

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

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

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

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

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

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

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

Medical Marijuana Act.

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

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

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

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

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

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

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

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

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

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

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     (h) Immunity:

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

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

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

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

section to assist registered qualifying patients.

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

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

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

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

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

compassion center.

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

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

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

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

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

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

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

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

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

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

     (i) Prohibitions:

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

marijuana to reflect the projected needs of qualifying patients;

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

person other than a patient cardholder or to such patient's primary caregiver or authorized

purchaser;

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

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

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

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

immediately; and

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

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

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

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

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

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

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

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

misdemeanor. and;

     (6) The department of health and the department of business regulation shall not

discriminate or disqualify any individual or applicant in the issuance of any license for

compassion centers or dispensaries on the basis of misdemeanor conviction(s) for marijuana

possession.

     (j) Legislative oversight committee:

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

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

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

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

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

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

department of public safety, or his/her designee.

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

evaluating and making recommendations to the general assembly regarding:

     (i) Patients' access to medical marijuana;

     (ii) Efficacy of compassion centers;

     (iii) Physician participation in the Medical Marijuana Program;

     (iv) The definition of qualifying medical condition; and

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

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

report to the general assembly on its findings.

     (k) The marijuana economic opportunity fund. Effective July 1, 2019, the department of

business regulation shall establish a restricted account entitled "The marijuana economic

opportunity fund" into which thirty percent (30%) of all revenue generated by sales, licensure,

fines, taxes and fees charged to any applicant for a compassion center or dispensary shall be

deposited. Thirty percent (30%) of the monies collected shall be used as follows:

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     (1) Ninety percent (90%) for the provision of interest free loans to companies or

businesses owned by people determined to be from areas of disproportionate impact pursuant to §

21-28.6-5(c), seeking to invest in the marijuana industry, including use for advertisement of the

program and educational information relating to the application process; and

     (2) Ten percent (10%) for drug education, counseling, treatment and job training

programs.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

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

SLATER MEDICAL MARIJUANA ACT--THE RHODE ISLAND MARIJUANA SOCIAL

EQUITY PROGRAM

***

     This act would require that one half of all new compassion center or dispensary licenses,

issued on or after July 1, 2019, be given to people who reside in areas determined to be

disproportionately harmed by marijuana prohibition and enforcement and establish a restricted

account entitled "The marijuana economic opportunity fund" into which thirty percent (30%) of

all revenue generated by sales, licensure, fines, taxes and fees charged applicants for a

compassion center or dispensary, commencing operation on or after July 1, 2019, of which ninety

percent (90%) be used to provide interest free loans to companies or businesses, owned by people

or businesses of color, seeking to invest in the marijuana industry, inclusive of advertising and

educational information and ten percent (10%) to be used to provide drug education, treatment

and job training programs.

     This act would take effect upon passage.

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