2019 -- H 6070

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LC002322

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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 CANNABIS EQUITY ACT

OF 2019

     

     Introduced By: Representatives Williams, Almeida, Cassar, Vella-Wilkinson, and Slater

     Date Introduced: May 03, 2019

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

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

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sections:

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     21-28.6-18. Rhode Island cannabis equity.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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collateral consequences associated with cannabis law violations, coupled with generational

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poverty and a lack of access to resources, made it extraordinarily difficult for persons of color,

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especially those with prior convictions, to enter the newly regulated cannabis industries.

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

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

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help to reduce barriers to licensure and employment of persons of color.

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

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cannabis market by bringing more people into the legal marketplace.

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

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criminalization be offered assistance to enter the cannabis industries as entrepreneurs or as

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employees with high quality and well-paying jobs. It is also the intent of this act to ensure that

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barriers to persons of color entering the cannabis industries are reduced or eliminated.

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     (b) As used in this chapter, the term "persons of color" means people who are citizens or

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permanent residents of the United States and who are:

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     (1) Black (a person having origins in any of the black racial groups of Africa); or

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     (2) Hispanic (a person of Mexican, Puerto Rican, Cuban, Central or South American, or

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other Spanish culture or origin, regardless of race); or

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     (3) Asian American (a person having origins in any of the original peoples of the Far

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East, Southeast Asia, the Indian subcontinent, or the Pacific Islands); or

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     (4) American Indian and Alaskan Native (a person having origins in any of the original

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peoples of North America).

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     21-28.6-19. Distribution of certificates and licenses.

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     (a) Notwithstanding any provisions of this chapter to the contrary, effective July 1, 2019,

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and thereafter, the department of business regulation (the "department") shall implement policies

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to increase participation in the marijuana industry of people of color or persons found to be

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disproportionately impacted by marijuana prohibition based on the 2019 legislative analysis

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entitled "the Rhode Island cannabis equity act" hereinafter referred to as the "2019 legislative

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analysis" conducted to determine whether a disparity exists in the arrest or conviction rate for

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marijuana arrests. Policies implemented pursuant to this section shall pursue a goal of ensuring

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that half (1/2) of all new compassion center registration certificates issued, including, but not

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limited to, certificates issued pursuant to the provisions of § 21-28.6-12, are issued to persons of

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color or those persons found by the 2019 legislative analysis to be disproportionately impacted by

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marijuana prohibition. In promulgating these policies, the department shall consider factors and

 

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goals identified in § 21-28.6-18(a), the conclusions reached in the 2019 legislative analysis, and

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other factors designed to promote the entry of persons of color and persons found by the 2019

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legislative analysis to be disproportionately impacted by marijuana prohibition into the cannabis

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industries.

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     (b) Notwithstanding any provisions of this chapter to the contrary, effective July 1, 2019,

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and thereafter, the department shall implement policies to increase participation of people of color

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or persons found to be disproportionately impacted by marijuana prohibition based on the 2019

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legislative analysis. Policies implemented pursuant to this section shall pursue a goal of ensuring

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that half (1/2) of all new cultivator licenses issued, including, but not limited to, licenses issued

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pursuant to the provisions of § 21-28.6-16, are issued to persons of color or persons found by the

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2019 legislative analysis to be disproportionately impacted by marijuana prohibition who are also

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residents of Rhode Island. In issuing these licenses, the department shall consider factors and

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goals identified in § 21-28.6-18(a), the conclusions reached in the 2019 legislative analysis and

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other factors designed to promote the entry of persons of color or persons found by the 2019

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legislative analysis to be disproportionately impacted into the cannabis industries.

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     (c) In issuing any certificate or license pertaining to the cannabis industries, the

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department shall also consider the number of the persons of color or those persons found by the

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2019 legislative analysis to be disproportionately impacted by marijuana prohibition who the

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applicant for the certificate or license will employ under or pursuant to the certificate or license.

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The department shall encourage applicants who commit to ensuring that at least a quarter (1/4) of

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their staff are persons of color or among those persons found by the 2019 legislative analysis to

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be disproportionately impacted by marijuana prohibition.

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     21-28.6-20. Cannabis economic opportunity fund.

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     (a) Fund established.

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     (1) Effective July 1, 2019, there is hereby established a restricted receipt account entitled

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the "cannabis economic opportunity fund” (the “fund”).

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     (b) Funding.

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     (1) Thirty percent (30%) of all monies and revenues generated by sales, licensure, fines,

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taxes and fees charged pursuant to this chapter and any other provisions related to the

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marijuana/cannabis industries, and thirty percent (30%) of all monies collected as a fine for a

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violation of a law or rule pertaining to marijuana/cannabis, shall be deposited into the fund. The

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fund shall be administered by the department of business regulation (the "department").

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     (c) Distribution of fund.

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     (1) Eighty percent (80%) of the fund shall be used to provide interest free loans to

 

LC002322 - Page 3 of 5

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persons of color or persons found by the 2019 legislative analysis to be disproportionately

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impacted by marijuana prohibition who are seeking entry into the cannabis industries. Applicants

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for these loans shall set forth in detail the proposed use of the funds and, if a loan is approved, the

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applicant shall be required to use the funds in accordance with the applicant’s application. The

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approval process for these loans shall be established by rules and regulations promulgated by the

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department. The department shall provide assistance to persons of color or persons found by the

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2019 legislative analysis to be disproportionately impacted by marijuana prohibition in the

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completion of these loan applications.

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     (2) Twenty percent (20%) of the fund shall be used to provide job training to assist

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persons of color or persons found by the 2019 legislative analysis to be disproportionately

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impacted by marijuana prohibition in gaining entrance into the cannabis industries.

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     21-28.6-21. Social equity analysis – Finding and conclusions.

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     To facilitate greater equity in business ownership and employment in the cannabis

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market, the department of business regulation (the "department") shall do all of the following:

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     (1) Serve as a point of contact for and to assist persons of color or persons found by the

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2019 legislative analysis to be disproportionately impacted by marijuana prohibition interested in

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gaining access to the cannabis industries.

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     (2) On or before July 1, 2020, publish the findings or conclusions reached by the

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legislative analysis.

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     (3) To the extent feasible, assist and provide guidance to persons of color or persons

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found by the 2019 legislative analysis to be disproportionately impacted by marijuana prohibition

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seeking to enter the cannabis industries in regard to appearances before and dealings with local

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municipal agencies, including, but not limited to, planning and zoning boards, and municipal

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governing councils.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

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

SLATER MEDICAL MARIJUANA ACT - THE RHODE ISLAND CANNABIS EQUITY ACT

OF 2019

***

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     This act would seek to remove barriers to persons of color or persons found to be

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disproportionately impacted by marijuana prohibition from entering into the cannabis industries.

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The act would ensure that a policy is implemented to promote an equitable distribution of licenses

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and certificates related to these industries. The act would also establish a loan program, to be

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administered by the department of business regulation, to assist persons of color or persons found

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to be disproportionately impacted by marijuana prohibition to gain access into the cannabis

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industries.

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     This act would take effect upon passage.

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