Title 21
Food and Drugs

Chapter 28.11
The Rhode Island Cannabis Act

§ 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.

(3) Requirements relating to the maintenance of medical marijuana program service levels. These shall include prospective licensee submission of comprehensive policies and procedures 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.

(5) Requirements relating to the advertising of cannabis and cannabis products by hybrid cannabis retailers who have been permitted to sell adult use cannabis pursuant to the provisions of this chapter.

(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; and home delivery.

(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 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.