2023 -- H 6000

========

LC002434

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

____________

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 Finance

     It is enacted by the General Assembly as follows:

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

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

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

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

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

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

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

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

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

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

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

title.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

following:

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

geographic zone;

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

municipal approval;

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

licensed cannabis retailer; and

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

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

premises.

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

prospective licensee submission of plans to electronically separate finished marijuana products

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

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

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

designation for medical or adult use sales.

     (i) The office of cannabis regulation shall issue requirements pertaining to the sale for adult

use of cannabis products known as "cannagar." For the purposes of this section, "cannagar" shall

mean a product which consists of cannabis that is wrapped in a tobacco leaf enclosure. Any sale of

a "cannagar" product which may be authorized by the office of cannabis regulation shall be exempt

from the taxes imposed by chapter 20 of title 44.

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

These shall include prospective licensee submission of comprehensive policies and procedures

LC002434 - Page 2 of 5

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

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

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

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

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

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

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

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

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

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

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

as defined in this section.

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

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

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

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

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

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

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

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

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

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

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

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

occur:

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

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

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

the commission to the cannabis office.

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

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

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

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

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

LC002434 - Page 3 of 5

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

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

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

of the commission.

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

responsibilities authorized pursuant to § 21-28.11-18.1.

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

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

cease.

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

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

“cannabis office” as defined in this chapter.

     SECTION 2. This act shall take effect upon passage.

========

LC002434

========

LC002434 - Page 4 of 5

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

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

***

     This act would, during the transitional period for cannabis regulation, require the office of

cannabis regulation to issue requirements pertaining to the sale of the adult use cannabis product

known as "cannagar" which is a cannabis product wrapped in a tobacco leaf enclosure, and which

product would be exempt from taxes pursuant to the cigarette and other tobacco products tax

chapter.

     This act would take effect upon passage.

========

LC002434

========

LC002434 - Page 5 of 5