2022 -- H 7747

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LC003987

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

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

SLATER MEDICAL MARIJUANA ACT

     Introduced By: Representatives Williams, Giraldo, Alzate, Morales, and Hull

     Date Introduced: March 02, 2022

     Referred To: House State Government & Elections

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 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" is hereby amended to read as

follows:

     21-28.6-12. Compassion centers.

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

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

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

or authorized purchasers, or out-of-state patient cardholders or other marijuana establishment

licensees. Except as specifically provided to the contrary, all provisions of this chapter (the Edward

O. Hawkins and Thomas C. Slater medical marijuana act), apply to a compassion center unless the

provision(s) conflict with a provision contained in this section.

     (b) License 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 licenses for compassion centers, including regulations governing:

     (i) The form and content of license 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 license 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 license 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 license 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 licenses for two (2) additional compassion centers. The

department shall solicit input from the public, and issue licenses if qualified applicants exist.

     (7)(i) Any time a compassion center license 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 license 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)(i) 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 licenses 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

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

compassion center. There shall be nine (9) compassion centers that may hold valid licenses at one

time. If at any time on or after July 1, 2019, fewer than nine (9) compassion centers are holding

valid licenses in Rhode Island, the department of business regulation shall accept applications for

new compassion centers and shall continue the process until nine (9) licenses have been issued by

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the department of business regulation.

     (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) A licensed cultivator may apply for, and be issued, an available compassion center

license, provided that the licensed cultivation premises is disclosed on the compassion center

application as the permitted second location for growing medical marijuana in accordance with

subsection (c)(i) of this section. If a licensed cultivator is issued an available compassion center

license, their cultivation facility license will merge with and into their compassion center license

in accordance with regulations promulgated by the department of business regulation. Once

merged, the cultivation of medical marijuana may then be conducted under the compassion center

license in accordance with this section and the cultivation license will be considered null and void

and of no further force or effect.

     (c) Compassion center and agent applications and license:

     (1) Each application for a compassion center shall be submitted in accordance with

regulations promulgated by the department of business regulation and shall include, but not be

limited to:

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

dollars ($10,000);

     (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

medical 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

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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 license 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 license 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 new compassion center license is issued, 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 areas throughout the state of Rhode Island;

     (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 license;

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

consideration need and population;

     (vi) Nothing herein shall prohibit more than one compassion center being geographically

located in any city or town;

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

shall be considered confidential healthcare information under Rhode Island law and are intended

to be deemed protected healthcare information for purposes of the Federal Health Insurance

Portability and Accountability Act of 1996, as amended; and

     (viii) 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;

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     (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)(i) A compassion center approved or renewed by the department of business regulation

on or after January 1, 2017, but before July 1, 2019, shall submit materials pursuant to regulations

promulgated by the department of business regulation before it may begin operations:

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

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

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

the secure cultivation of medical marijuana;

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

compassion center;

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

volunteer of the compassion center at its inception.

     (ii) A compassion center approved or renewed by the department of business regulation on

or after July 1, 2019, shall submit materials pursuant to regulations promulgated by the department

of business regulation before it may begin operations, which shall include but not be limited to:

     (A) A fee paid to the department in the amount of five hundred thousand dollars

($500,000);

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

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

the secure cultivation of medical marijuana;

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

compassion center, and any person who has a direct or indirect ownership interest in any marijuana

establishment licensee, which ownership interest shall include, but not be limited to, any interests

arising pursuant to the use of shared management companies, management agreements or other

agreements that afford third-party management or operational control, or other familial or business

relationships between compassion center or cultivator owners, members, officers, directors,

managers, investors, agents, or key persons that effect dual license interests as determined by the

department of business regulation;

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

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volunteer of the compassion center at its inception.

     (6) Except as provided in subsection (c)(7) of this section, 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 of business regulation; and, except in the case of an employee,

notification to the department of health or the department of business regulation by the department

of public safety division of state police, attorney general's office, or local law enforcement 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, or agent, 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, the attorney general's office, or local law enforcement 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

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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, the attorney general's office, or local law enforcement 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, the attorney general's office, or local law enforcement 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, except for employees with no ownership,

equity, financial interest, or managing control of a marijuana establishment license, 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,

employee, or any other designation required by the department of business regulation shall expire

one year after its issuance, or upon the expiration of the licensed organization's license, 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 the

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

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

this section. The department of health may choose to suspend and/or revoke his or her registry

identification card after the 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

subsection (c)(7) of this section. The department of business regulation may choose to suspend

and/or revoke his or her registry identification card after the 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 license shall expire two (2)

years after its license is issued. On or after January 1, 2017, a compassion center's license shall

expire one year after its license is issued. The compassion center may submit a renewal application

beginning sixty (60) days prior to the expiration of its license.

     (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 subsections (c)(4) and

(c)(5) of this section, including a five-hundred-thousand-dollar ($500,000) fee;

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

or regulations issued pursuant to this chapter; and

     (iii) The department of business regulation finds 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 subsections (d)(2)(i) -- (iii) of this section have not been met, the

department may begin an open application process for the operation of a compassion center. In

granting a new license, the department of health or the department of business regulation shall

consider factors listed in subsection (c)(3) of this section.

     (4) The department of business regulation shall issue a compassion center one or more

thirty-day (30) temporary licenses after that compassion center's license 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;

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     (ii) The compassion center requested a temporary license; and

     (iii) The compassion center has not had its license suspended or revoked due to violations

of this chapter or regulations issued pursuant to this chapter.

     (5) A compassion center's license shall be denied, suspended, or 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;

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

written certification of a qualifying patient's medical condition; or

     (v) If any compassion center owner, member, officer, director, manager, investor, agent,

or key person as defined in regulations promulgated by the department of business regulation, has

any interest, direct or indirect, in another compassion center or another licensed cultivator, except

as permitted in subsection (b)(10) of this section. Prohibited interests shall also include interests

arising pursuant to the use of shared management companies, management agreements, or other

agreements that afford third-party management or operational control, or other familial or business

relationships between compassion center or cultivator owners, members, officers, directors,

managers, investors, agents, or key persons that effect dual license interests as determined by the

department of business regulation.

     (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. A compassion center shall be subject to regulations promulgated by the

department of business regulation for general operations and record keeping, which shall include,

but not be limited to:

     (i) Minimum security and surveillance requirements;

     (ii) Minimum requirements for workplace safety and sanitation;

     (iii) Minimum requirements for product safety and testing;

     (iv) Minimum requirements for inventory tracking and monitoring;

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     (v) Minimum requirements for the secure transport and transfer of medical marijuana;

     (vi) Minimum requirements to address odor mitigation;

     (vii) Minimum requirements for product packaging and labeling;

     (viii) Minimum requirements and prohibitions for advertising;

     (ix) Minimum requirements for the testing and destruction of marijuana. Wherever

destruction of medical marijuana and medical marijuana product is required to bring a person or

entity into compliance with any provision of this chapter, any rule or regulation promulgated

thereunder, or any administrative order issued in accordance therewith, the director of the

department of business regulation may designate his or her employees or agents to facilitate the

destruction;

     (x) A requirement that if a compassion center violates this chapter, or any regulation

thereunder, and the department of business regulation determines that violation does not pose an

immediate threat to public health or public safety, the compassion center shall pay to the department

of business regulation a fine of no less than five-hundred dollars ($500); and

     (xi) A requirement that if a compassion center violates this chapter, or any regulation

promulgated hereunder, and the department of business regulation determines that the violation

poses an immediate threat to public health or public safety, the compassion center shall pay to the

department of business regulation a fine of no less than two thousand dollars ($2,000) and the

department shall be entitled to pursue any other enforcement action provided for under this chapter

and the regulations.

     (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;

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     (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 of business regulation 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 ensure 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 of the

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

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

implementation of the 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 patient cardholders 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, 2017, each compassion center shall be subject to any regulations

promulgated by the departments of health and business regulation that specify how 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

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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

     (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 the 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, to a

patient cardholder, 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

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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.

     (h) Immunity:

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

departments pursuant to subsection (e) of this section; 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 licensed 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 marijuana to

reflect the projected needs of qualifying patients;

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

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

purchaser;

     (3) A compassion center may not procure, purchase, transfer, or sell marijuana to or from

any entity other than a marijuana establishment licensee in accordance with the provisions of this

chapter;

     (4) A person found to have violated subsection (h)(2) or (h)(3) of this section may not be

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

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

center found in violation of subsection (h)(2) or (h)(3) of this section shall have his or her registry

identification revoked immediately; and

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

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

board member, or agent 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.

     (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

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report to the general assembly on its findings.

     (k) License required. No person or entity shall engage in activities described in this section

without a compassion center license issued by the department of business regulation.

     (l) Any compassion center license issued pursuant to this chapter shall be valid only for the

compassion center which is the subject of the license and is not transferrable to any other owner or

location.

     (m) Any new compassion center license awarded pursuant to the department of business

regulation lottery-based licensure process shall only be issued if the applicant winning the lottery

process does not change, transfer or alter the location and ownership from the location and

ownership indicated on the approved application.

     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

***

     This act would prohibit the transfer of any compassion center license to any other owner

or location and would provide that new compassion center licenses issued by way of lottery be

issued only to the location and ownership approved in the application.

     This act would take effect upon passage.

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