2023 -- H 5829

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LC001958

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

RELATING TO FOOD AND DRUGS -- THE RHODE ISLAND CANNABIS ACT

     

     Introduced By: Representative Scott Slater

     Date Introduced: March 01, 2023

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 21-28.11-10.1 of the General Laws in Chapter 21-28.11 entitled "The

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Rhode Island Cannabis Act" is hereby amended to read as follows:

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     21-28.11-10.1. Transitional period and transfer of authority.

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     (a) To protect public health and public safety, upon the effective date of this chapter [May

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25, 2022] until final issuance of the commission’s rules and regulations promulgated pursuant to

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the provisions of this chapter, there shall exist a transitional period of regulatory and enforcement

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authority regarding the production, possession, regulation, distribution, sale and use of cannabis

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relating to the sale by hybrid cannabis retailers of adult use cannabis pursuant to § 21-28.11-10.

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     (b) During the transitional period, the office of cannabis regulation shall prescribe such

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forms, procedures, and requirements as necessary to facilitate the acquisition of hybrid retail and

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cultivation licenses by compassion centers and cultivators licensed pursuant to chapter 28.6 of this

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title.

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     (c) Such forms, procedures, and requirements shall be posted on the website of the office

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of cannabis regulation no later than October 15, 2022, at which time an application period will

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commence. Applications shall be received, reviewed, and approved on a rolling basis provided that

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in no case shall an approved hybrid retailer begin adult use sales before December 1, 2022.

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     (d) The forms, procedures, and requirements prescribed by the office of cannabis regulation

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shall incorporate, but shall not be limited to, the following:

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     (1) Requirements pertaining to the physical premises of hybrid retail licensees. Where

 

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physically possible these shall include prospective licensee plans to physically separate marijuana

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and marijuana products designated for adult use and medical sales, respectively, in inventory,

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storage, and customer-facing floor and display areas; plans to physically separate sales areas for

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adult use and medical sales, which may be provided by a temporary or semi-permanent physical

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barrier; plans to provide and maintain a patient consultation area that will allow privacy for

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confidential consultation with qualifying patients; and plans to prioritize patient and caregiver

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identification verification and physical entry into retail areas in the event of capacity or other

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constraints; however, if the premises of a hybrid retail licensee does not allow the licensee to meet

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the requirements of this subsection or would cause undue hardship on the licensee, the office of

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cannabis regulation may authorize the hybrid retail licensee to conduct adult use sales at an adjunct

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location. In authorizing any such adjunct location, the office shall require, at a minimum, the

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following:

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     (i) The adjunct location must be physically located within the same municipality and

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geographic zone;

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     (ii) The adjunct location must comply with all municipal zoning requirements and obtain

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municipal approval;

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     (iii) The approval of any adjunct location will not cause undue hardship upon another

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licensed cannabis retailer; and

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     (iv) In the instance that an adjunct location is approved by the office, the hybrid cannabis

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retailer shall not be permitted to engage in the sale of cannabis for adult use at more than one

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premises.

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     (2) Requirements pertaining to inventory, product, and sales tracking. These shall include

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prospective licensee submission of plans to electronically separate finished marijuana products

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designated for medical or adult use sales in hybrid licensees’ inventory and sales tracking systems.

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If prospective hybrid licensees are conducting cultivation activities, they shall submit plans to

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distinguish between sales of marijuana or finished marijuana products at wholesale based on

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designation for medical or adult use sales.

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     (3) Requirements relating to the maintenance of medical marijuana program service levels.

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These shall include prospective licensee submission of comprehensive policies and procedures

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detailing plans to maintain a sufficient quantity and variety of medical marijuana products, and if

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substitutions of medical marijuana products with adult use marijuana products are to be made, a

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justification for such substitutions. Prospective hybrid licensees shall also be required to designate

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an individual who will be primarily responsible for maintenance of medical marijuana program

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service levels and ongoing compliance with existing program requirements, rules, and regulations.

 

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     (4) Requirements relating to operating plans, policies, and procedures. These shall include

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prospective licensee submission, maintenance of, and adherence to a set of written standard

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operating procedures that encompass both adult use and medical marijuana service lines. These

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operating plans and procedures shall take the form of an updated operations manual as currently

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required under medical marijuana program regulations and shall include, but not be limited to,

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policies and procedures relating to the maintenance of medical marijuana program service levels

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as defined in this section.

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     (5) Requirements relating to the advertising of cannabis and cannabis products by hybrid

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cannabis retailers who have been permitted to sell adult use cannabis pursuant to the provisions of

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this chapter.

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     (e) Notwithstanding the foregoing provisions of this section, all prospective and approved

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applicants for hybrid cannabis retailer and cannabis cultivator licenses under this chapter shall

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maintain compliance with the existing provisions of chapter 28.6 of this title of the general laws

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and the regulations promulgated thereunder until final issuance of the commission’s rules and

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regulations, including, but not limited to, existing restrictions and requirements related to financial

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disclosures; registration of owners, managers, key persons, agents, and employees; product testing;

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packaging and labeling; transportation; and home delivery; and advertising.

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     (f) Forms, procedures, and requirements relating to this transitional period may be amended

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by the office of cannabis regulation or the commission up until the final issuance of the

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commission’s regulations pursuant to the provisions of this chapter at which time the forms,

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procedures, and requirements will be superseded by the commission’s final rules and regulations.

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     (g) Upon final issuance of the commission’s rules and regulations, the following shall

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occur:

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     (1) All powers, duties and responsibilities of the department of business regulation and the

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office of cannabis regulation with respect to the regulation, administration and enforcement of the

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provisions of chapter 28.6 of this title shall be transferred to the commission or as designated by

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the commission to the cannabis office.

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     (2) All powers, duties and responsibilities of the department of environmental management

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with respect to regulation, administration and enforcement of chapter 28.6 of this title shall be

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transferred to the commission or as designated by the commission to the cannabis office.

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     (3) All powers, duties and responsibilities of the department of health with respect to

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regulation, administration and enforcement of chapter 28.6 of this title shall be transferred to the

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commission or as designated by the commission to the cannabis office, except for the following:

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     (i) Administration of registry identification cards to qualified patients; and

 

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     (ii) Powers delegated to the department pursuant to this chapter or by rules and regulations

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of the commission.

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     (4) There shall be established a “cannabis office” with the powers, duties and

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responsibilities authorized pursuant to § 21-28.11-18.1.

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     (5) All powers exercised by state agencies, departments and offices pursuant to the

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provisions of subsections (a) and (b) of this section relating to transitional period authority shall

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cease.

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     (h) Upon final issuance of the commission’s rules and regulations, whenever the term

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“office of cannabis regulation” appears in any general law or regulation, the term shall mean the

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“cannabis office” as defined in this chapter.

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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 RHODE ISLAND CANNABIS ACT

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     This act would permit the office of cannabis regulation to provide forms, procedures and

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requirements with respect to the advertising of cannabis products during the transitional period.

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     This act would take effect upon passage.

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