H5274

	2013 -- H 5274
	=======
	LC00647
	=======
	STATE OF RHODE ISLAND

	IN GENERAL ASSEMBLY

	JANUARY SESSION, A.D. 2013

	____________


	A N A C T
	RELATING TO FOOD AND DRUGS -- TAXATION AND REGULATION OF MARIJUANA


	Introduced By: Representatives Ajello, Newberry, Bennett, Martin, and Valencia

	Date Introduced: February 06, 2013

	Referred To: House Finance




	It is enacted by the General Assembly as follows:

1-1	SECTION 1. Title 21 of the General Laws entitled "FOOD AND DRUGS" is hereby
1-2	amended by adding thereto the following chapters:
1-3	CHAPTER 28.6.1
1-4	MARIJUANA REGULATION, CONTROL AND TAXATION ACT
1-5	21-28.6.1-1. Short title. -- This chapter shall be known and may be cited as the
1-6	"Marijuana Regulation, Control, and Taxation Act."
1-7	21-28.6.1-2. Legislative findings. -- The general assembly hereby finds and declares
1-8	that:
1-9	(1) More than seven (7) decades of arresting marijuana users has failed to prevent
1-10	marijuana use; a study published in the American Journal of Public Health compared marijuana
1-11	usage rates in the United States with rates in the Netherlands, where adults’ marijuana use and
1-12	sales are de facto legal, found "no evidence to support claims that criminalization reduces
1-13	[marijuana] use."
1-14	(2) More than one hundred million (100,000,000) adults in the United States, including
1-15	the last three (3) presidents, have used marijuana, and data from the 2010 Monitoring the Future
1-16	Survey show that despite prohibition, more than eighty percent (80%) of twelfth graders find
1-17	marijuana "fairly easy" or "easy" to obtain.
1-18	(3) More than sixty thousand (60,000) people have been killed in drug cartel and
1-19	crackdown-related violence since the beginning of the crackdown on cartels in Mexico in 2006,
1-20	and, a significant portion of drug cartel profits come from marijuana sales in the United States.
2-1	(4) In June 2005, five hundred thirty (530) economists, including three (3) Nobel
2-2	Laureates, endorsed a study on the costs of marijuana prohibition by Harvard professor Dr.
2-3	Jeffrey Miron which estimated that taxing and regulating marijuana would yield ten billion
2-4	dollars to fourteen billion dollars ($10,000,000,000 – $14,000,000,000) in increased revenues and
2-5	savings, and which called for "an open and honest debate about marijuana prohibition," adding,
2-6	"We believe such a debate will favor a regime in which marijuana is legal but taxed and regulated
2-7	like other goods."
2-8	(5) Heads of state in countries that have been scarred by drug cartel violence are
2-9	beginning to call for a re-examination of drug policies, with past and current presidents of four
2-10	(4) Latin American countries -- current president of Guatemala, President Otto Pérez Molina,
2-11	Cesar Gaviria of Colombia, Fernando Henrique Cardoso of Brazil, and Felipe Calderon, Vicente
2-12	Fox, and Ernesto Zedillo of Mexico -- calling either for a discussion on decriminalizing
2-13	marijuana or for marijuana to be made legal and regulated.
2-14	(6) The lack of marijuana market regulation ensures that marijuana production and
2-15	distribution are in the hands of unlicensed growers, who are untaxed, unmonitored, and often
2-16	cultivated on state or federal lands, and the product is not controlled or regulated for safety
2-17	concerns.
2-18	(7) There were more than seven hundred fifty-seven thousand (757,000) arrests for
2-19	marijuana offenses in the United States in 2009, which is close to the entire adult population of
2-20	Rhode Island.
2-21	(8) Just over eight thousand one hundred (8,100) suspects were booked by federal law
2-22	enforcement in 2004, about one percent of all marijuana arrests, demonstrating that nearly all
2-23	marijuana arrests occur on the state level, and thus, state legislative action has the capacity to
2-24	significantly change policy.
2-25	(9) While there were more than two thousand seven hundred and two (2,702) arrests for
2-26	marijuana offenses in Rhode Island in 2009, thousands of serious crimes went unsolved; the
2-27	clearance rates for homicide, rape, and robbery were only forty-three and eight tenths percent
2-28	(43.8%), twenty-seven percent (27%), and twenty-nine and three tenths percent (29.3%) in Rhode
2-29	Island in 2009.
2-30	(10) There is an alarming racial disparity in marijuana arrests in Rhode Island, with
2-31	African Americans arrested at nearly three and one half (3½) times the rate of whites in 2009,
2-32	although their marijuana usage rates were very similar.
2-33	(11) Removing state criminal penalties for persons aged twenty-one (21) and older who
2-34	use or cultivate small amounts of marijuana, and from regulated providers, would allow police to
3-1	spend more time preventing and investigating serious crimes like murder, rape, assault, robbery,
3-2	burglary, and driving under the influence of alcohol and other drugs and would create substantial
3-3	savings.
3-4	(12) States are not required to enforce federal law or to prosecute people for engaging in
3-5	activities prohibited by federal law, and may choose whether or not to impose state criminal
3-6	penalties on conduct.
3-7	21-28.6.1-3. Definitions. -- For purposes of this chapter:
3-8	(1) "Department" means the state of Rhode Island department of business regulation.
3-9	(2) "Marijuana" means all parts of the plant cannabis sativa L., whether growing or not;
3-10	the seeds thereof; the resin extracted from any part of the plant; and every compound,
3-11	manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. It does not
3-12	include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the
3-13	seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of
3-14	the mature stalks (except the resin extracted from it), fiber, oil, or cake, or the sterilized seed of
3-15	the plant that is incapable of germination.
3-16	(3) "Marijuana paraphernalia" means equipment, products, and materials which are used
3-17	or intended for use in planting, propagating, cultivating, growing, harvesting, manufacturing,
3-18	compounding, converting, producing, processing, preparing, testing, analyzing, packaging,
3-19	repackaging, storing, containing, concealing, ingesting, inhaling, or otherwise introducing
3-20	marijuana into the human body.
3-21	(4) "Public place" means any street, alley, park, sidewalk, public building other than
3-22	individual dwellings, or any place of business or assembly open to or frequented by the public,
3-23	and any other place to which the public has access.
3-24	(5) "Retailer" means an entity that is either:
3-25	(i) Registered pursuant to sections 21-28.6.2 and 44-49-17 of the general laws, to be
3-26	exempt from state penalties for purchasing marijuana from a wholesaler and selling marijuana
3-27	and marijuana paraphernalia to customers who are twenty-one (21) years of age or older; or
3-28	(ii) Exempt from state penalties under Rhode Island general laws 21-28.6.2-2 due to the
3-29	department not issuing registrations.
3-30	(6) "Safety compliance facility" means an entity that is either:
3-31	(i) Registered pursuant to chapter 21-28.6.2 and Rhode Island general laws section 44-49-
3-32	17, inclusive, of this chapter to be exempt from state penalties for providing one or both of the
3-33	following services: training, including that related to cultivation of marijuana, safe handling of
3-34	marijuana, and security and inventory procedures; or testing marijuana for potency and
4-1	contaminants; or
4-2	(ii) Exempt from state penalties under Rhode Island general laws section 21-28.6.2-3 due
4-3	to the department not issuing registrations.
4-4	(7) "Smoking" means heating to at least the point of combustion, causing plant material
4-5	to burn. It does not include vaporizing, which means heating below the point of combustion and
4-6	resulting in a vapor or mist.
4-7	(8) "State prosecution" means prosecution initiated or maintained by the state of Rhode
4-8	Island or an agency or political subdivision of the state of Rhode Island.
4-9	(9) "Wholesaler" means an entity that is either:
4-10	(i) Registered pursuant to sections 21-28.6.2 and 44-49-17 of the general laws, to be
4-11	exempt from state penalties for cultivating, preparing, packaging, and selling marijuana to a
4-12	retailer or another wholesaler, but not selling marijuana to the general public; or
4-13	(ii) Exempt from state penalties under Rhode Island general laws section 21-28.6.2-3 due
4-14	to the department not issuing registrations.
4-15	21-28.6.1-4. Exempt activities. -- Except as otherwise provided in this chapter:
4-16	(1) A person who is twenty-one (21) years of age or older is exempt from arrest, civil or
4-17	criminal penalty, seizure or forfeiture of assets, discipline by any state or local licensing board,
4-18	and state prosecution for the following acts:
4-19	(i) Actually and constructively using, obtaining, purchasing, transporting, or possessing
4-20	one ounce (1 oz.) or less of marijuana. As used herein, "one ounce (1 oz.) or less of marijuana"
4-21	includes one ounce (1 oz.) or less of marijuana, or any mixture or preparation thereof, including,
4-22	but not limited to, five (5) grams or less of hashish, sixteen ounces (16 oz.) of marijuana-infused
4-23	product in solid form, or seventy-two ounces (72 oz.) of marijuana-infused product in liquid
4-24	form.
4-25	(ii) Controlling any premises or vehicle where up to one ounce (1 oz.) or less of
4-26	marijuana per person who is twenty-one (21) years of age or older is possessed, processed, or
4-27	stored;
4-28	(iii) Using, obtaining, purchasing, transporting, or possessing, actually or constructively,
4-29	marijuana paraphernalia;
4-30	(iv) Selling marijuana seeds to a wholesaler;
4-31	(v) Manufacturing, possessing, or producing marijuana paraphernalia;
4-32	(vi) Selling marijuana paraphernalia to retailers, wholesalers, or persons who are twenty-
4-33	one (21) years of age or older;
5-34	(vii) Transferring one ounce (1 oz.) or less of marijuana to a person who is twenty-one
5-35	(21) years of age or older without remuneration;
5-36	(viii) Aiding and abetting another person who is twenty-one (21) years of age or older in
5-37	the possession or use of one ounce (1 oz.) or less of marijuana;
5-38	(ix) Aiding and abetting another person who is twenty-one (21) years of age or older in
5-39	the possession or use of marijuana paraphernalia;
5-40	(x) Cultivating, possessing, growing, processing, or transporting no more than six (6)
5-41	marijuana plants, with three (3) or fewer being mature, flowering plants.
5-42	(xi) Controlling any premises where other persons twenty-one (21) years of age or older
5-43	cultivate marijuana plants, with the total number of mature, flowering plants not exceeding
5-44	eighteen (18) in any dwelling unit;
5-45	(xii) Assisting with the cultivation of marijuana plants that are cultivated at the same
5-46	location for persons twenty-one (21) years of age or older, with the total number of mature,
5-47	flowering plants not exceeding eighteen (18) in any dwelling unit; and
5-48	(xiii) Any combination of the acts described within paragraphs (i) to (xii), inclusive.
5-49	(2) A retailer or any person who is twenty-one (21) years of age or older and acting in his
5-50	or her capacity as an owner, employee, or agent of a retailer who acts in compliance with the
5-51	provisions of this chapter is exempt from arrest, civil or criminal penalty, seizure or forfeiture of
5-52	assets, discipline by any state or local licensing board, and state prosecution for the following
5-53	acts:
5-54	(i) Transporting or possessing, actually or constructively, marijuana, including seedlings
5-55	or cuttings that was purchased from a wholesaler or a retailer;
5-56	(ii) Obtaining or purchasing marijuana from a wholesaler or a retailer;
5-57	(iii) Selling or transferring marijuana to another retailer;
5-58	(iv) Manufacturing, possessing, producing, obtaining, or purchasing marijuana
5-59	paraphernalia;
5-60	(v) Selling, transferring, or delivering marijuana, including seedlings or cuttings, which
5-61	originate from a wholesaler or retailer, or marijuana paraphernalia to any person who is twenty-
5-62	one (21) years of age or older;
5-63	(vi) Aiding and abetting any person who is twenty-one (21) years of age or older in the
5-64	possession or use of one ounce (1 oz.) or less of marijuana and three (3) or fewer marijuana
5-65	seedlings or cuttings;
5-66	(vii) Aiding and abetting any person who is twenty-one (21) years of age or older in the
5-67	possession or use of marijuana paraphernalia;
6-68	(viii) Controlling any premises or vehicle where marijuana and marijuana paraphernalia
6-69	is possessed, sold, or deposited in a manner that is not in conflict with this chapter or department
6-70	regulations; and
6-71	(ix) Any combination of the acts described within paragraphs (i) to (viii), inclusive.
6-72	(3) A wholesaler or any person who is twenty-one (21) years of age or older and acting in
6-73	his or her capacity as an owner, employee, or agent of a wholesaler who acts in compliance with
6-74	the provisions of this chapter is exempt from arrest, civil or criminal penalty, seizure or forfeiture
6-75	of assets, discipline by any state or local licensing board, and state prosecution for the following
6-76	acts:
6-77	(i) Cultivating, packing, processing, transporting, or manufacturing marijuana;
6-78	(ii) Producing marijuana-infused products, including tinctures, oils, and edible or potable
6-79	goods;
6-80	(iii) Transporting or possessing marijuana that was produced by the wholesaler or another
6-81	wholesaler;
6-82	(iv) Transporting or possessing marijuana seeds;
6-83	(v) Possessing, transporting, selling, or producing marijuana paraphernalia;
6-84	(vi) Selling marijuana to a retailer or a wholesaler;
6-85	(vii) Purchasing marijuana from a wholesaler;
6-86	(viii) Purchasing marijuana seeds from a person who is twenty-one (21) years of age or
6-87	older;
6-88	(ix) Controlling any premises or vehicle where marijuana and marijuana paraphernalia is
6-89	possessed, manufactured, sold, or deposited in a manner that is not in conflict with this chapter or
6-90	department regulations; and
6-91	(x) Any combination of the acts described within paragraphs (i) to (ix), inclusive.
6-92	(4) A safety compliance facility or any person who is twenty-one (21) years of age or
6-93	older and acting in his or her capacity as an owner, employee, or agent of a safety compliance
6-94	facility who acts in compliance with the provisions of this chapter shall not be subject to state
6-95	prosecution; search, except by the department pursuant to Rhode Island general laws section 21-
6-96	28.6.2-17; seizure; or penalty in any manner or be denied any right or privilege, including, but not
6-97	limited to, civil penalty or disciplinary action by a court or business licensing board or entity,
6-98	solely for acting in accordance with this chapter and department regulations to provide the
6-99	following services:
6-100	(i) Acquiring or possessing marijuana obtained from wholesalers, retailers, or, if the
6-101	quantity is no more than one ounce (1 oz.) per person, individuals twenty-one (21) years of age or
6-102	older;
7-1	(ii) Transporting or possessing marijuana obtained from wholesalers, retailers, or, if the
7-2	quantity is no more than one ounce (1 oz.) per person, individuals twenty-one (21) years of age or
7-3	older;
7-4	(iii) Returning marijuana to wholesalers, retailers, or, if the quantity is no more than one
7-5	ounce (1 oz.) per person, individuals twenty-one (21) years of age or older;
7-6	(iv) Receiving compensation for analytical testing, including for contaminants or
7-7	potency; and
7-8	(v) Any combination of the acts described within paragraphs (i) through (iv), inclusive.
7-9	(5) The acts listed in subdivisions (1) through (4), when undertaken in compliance with
7-10	the provisions of this chapter, are lawful under Rhode Island law.
7-11	(6) Except as otherwise provided in subdivision (7), in a prosecution for selling,
7-12	transferring, delivering, giving, or otherwise furnishing marijuana or marijuana paraphernalia to
7-13	any person who is under twenty-one (21) years of age, it is a complete defense if:
7-14	(i) The person who sold, gave, or otherwise furnished marijuana or marijuana
7-15	paraphernalia to a person who is under twenty-one (21) years of age was a retailer or was acting
7-16	in his or her capacity as an owner, employee, or agent of a retailer at the time the marijuana or
7-17	marijuana paraphernalia was sold, given, or otherwise furnished to the person; and
7-18	(ii) Before selling, giving, or otherwise furnishing marijuana or marijuana paraphernalia
7-19	to a person who is under twenty-one (21) years of age, the person who sold, gave, or otherwise
7-20	furnished the marijuana or marijuana paraphernalia, or a staffer or agent of the retailer, was
7-21	shown a document which appeared to be issued by an agency of a federal, state, tribal, or foreign
7-22	sovereign government and which indicated that the person to whom the marijuana or marijuana
7-23	paraphernalia was sold, given, or otherwise furnished was twenty-one (21) years of age or older
7-24	at the time the marijuana or marijuana paraphernalia was sold, given, or otherwise furnished to
7-25	the person.
7-26	(7) The complete defense set forth in subdivision (6) does not apply if:
7-27	(i) The document which was shown to the person who sold, gave, or otherwise furnished
7-28	the marijuana or marijuana paraphernalia was counterfeit, forged, altered, or issued to a person
7-29	other than the person to whom the marijuana or marijuana paraphernalia was sold, given, or
7-30	otherwise furnished; and
7-31	(ii) Under the circumstances, a reasonable person would have known or suspected that
7-32	the document was counterfeit, forged, altered, or issued to a person other than the person to
7-33	whom the marijuana or marijuana paraphernalia was sold, given, or otherwise furnished.
8-34	21-28.6.1-5. Authorized activities. -- (a) Any person who is twenty-one (21) years of
8-35	age or older is authorized to manufacture, produce, use, obtain, purchase, transport, or possess,
8-36	actually or constructively, marijuana paraphernalia.
8-37	(b) Any person who is twenty-one (21) years of age or older is authorized to distribute or
8-38	sell marijuana paraphernalia to retailers, wholesalers, or persons who are twenty-one (21) years of
8-39	age or older.
8-40	21-28.6.1-6. Civil violation. -- The manufacture or cultivation of six (6) or fewer
8-41	marijuana plants by any person who is twenty-one (21) years of age or older in a location that is
8-42	contrary to this subsection is a misdemeanor punishable by a fine of up to one thousand dollars
8-43	($1,000), up to ten (10) days in jail, or both.
8-44	(1) Cultivation shall not occur in a location where the marijuana plants are subject to
8-45	public view without the use of binoculars, aircraft, or other optical aids.
8-46	(2) Marijuana that is cultivated outdoors must be cultivated in an enclosed, locked,
8-47	location, such as a locked fenced-in area.
8-48	(3) Cultivation may only occur on property lawfully in possession of the cultivator or
8-49	with the consent of the person in lawful possession of the real property.
8-50	(4) If one or more persons under twenty-one (21) years of age live in or are guests at the
8-51	property where marijuana is cultivated, reasonable precautions must be taken to prevent their
8-52	access to marijuana plants. For purposes of illustration and not limitation, cultivating marijuana in
8-53	a locked closet, room, or fully enclosed area to which the person or persons under twenty-one
8-54	(21) years of age do not possess a key, constitutes reasonable precautions.
8-55	21-28.6.1-7. Activities not exempt. -- (a) The provisions of this chapter do not exempt
8-56	any person from arrest, civil or criminal penalty, seizure or forfeiture of assets, discipline by any
8-57	state or local licensing board, and state prosecution for, nor may he or she establish an affirmative
8-58	defense based on this chapter to charges arising from, any of the following acts:
8-59	(1) Driving, operating, or being in actual physical control of a vehicle or a vessel under
8-60	power or sail while impaired by marijuana; or
8-61	(2) Possessing marijuana if the person is a prisoner; or
8-62	(3) Possessing marijuana in any local detention facility, county jail, state prison,
8-63	reformatory, or other correctional facility, including, without limitation, any facility for the
8-64	detention of juvenile offenders.
8-65	21-28.6.1-8. Smoking marijuana shall be prohibited in all public places. -- (a) A
8-66	person who smokes marijuana in such an indoor public place shall be guilty of a petty
8-67	misdemeanor, and may be punished as follows:
9-68	(1) By a fine of not more than two hundred fifty dollars ($250), imprisonment for a term
9-69	not exceeding ten (10) days, or both for the first violation;
9-70	(2) By a fine of not more than five hundred dollars ($500), imprisonment for a term not
9-71	exceeding thirty (30) days, or both, for the second or subsequent violation.
9-72	(b) A person who smokes marijuana in an outdoor public place shall be liable for a civil
9-73	penalty of one hundred fifty dollars ($150).
9-74	(c) Municipalities may impose additional fines equivalent to state fines for the
9-75	consumption of alcohol in an outdoor public place.
9-76	21-28.6.1-9. Places of employment. -- The provisions of this chapter do not require
9-77	employers to accommodate the use or possession of marijuana, or being under the influence of
9-78	marijuana, in a place of employment.
9-79	21-28.6.1-10. Rental premises. -- The provisions of this chapter do not prevent a
9-80	landlord from prohibiting the cultivation of marijuana on the rental premises.
9-81	21-28.6.1-11. Hotels and motels. -- A landlord or innkeeper may prohibit the smoking of
9-82	marijuana on the rented property or rooms if the landlord or innkeeper posts a notice.
9-83	21-28.6.1-12. False age representation. -- Any person who falsely represents himself or
9-84	herself to be twenty-one (21) years of age or older in order to obtain any marijuana or marijuana
9-85	paraphernalia pursuant to this chapter is guilty of a misdemeanor.
9-86	21-28.6.1-13. Expungement. -- This chapter shall, by operation of law, expunge the
9-87	conviction of anyone previously convicted of possession of one ounce (1 oz.) or less of marijuana
9-88	or possession of marijuana paraphernalia, provided that person was twenty-one (21) years of age
9-89	or older at the time of conviction.
9-90	21-28.6.1-14. Medical use. -- Nothing contained herein shall be construed to repeal or
9-91	modify any law concerning the medical use of marijuana or tetrahydrocannabinol in other forms,
9-92	such as Marinol.
9-93	CHAPTER 28.6.2
9-94	TAXATION AND REGULATION OF MARIJUANA
9-95	21-28.6.2-1. Definitions. -- As used in this chapter:
9-96	(1) "Marijuana" means all parts of the plant cannabis sativa L., whether growing or not;
9-97	the seeds thereof; the resin extracted from any part of the plant; and every compound,
9-98	manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. It does not
9-99	include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the
9-100	seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of
9-101	the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of
9-102	the plant that is incapable of germination.
10-1	(2) "Retailer" means an entity that is either:
10-2	(i) Registered pursuant to sections 21-28.6.2 and 44-49-17 of the general laws, to be
10-3	exempt from state penalties for purchasing marijuana from a wholesaler and selling marijuana
10-4	and marijuana paraphernalia to customers who are twenty-one years (21) years of age or older; or
10-5	(ii) Exempt from state penalties under Rhode Island general laws section 21-28.6.2-2 due
10-6	to the department not issuing registrations.
10-7	(3) "Safety compliance facility" means an entity that is either:
10-8	(i) Registered pursuant to sections 21-28.6.2 and 44-49-17 of the general laws, to be
10-9	exempt from state penalties for providing one or both of the following services:
10-10	(A) Training, including that related to cultivation of marijuana, safe handling of
10-11	marijuana, and security and inventory procedures; or
10-12	(B) Testing marijuana for potency and contaminants; or
10-13	(ii) Exempt from state penalties under Rhode Island general laws section 21-28.6.2-4 due
10-14	to the department not issuing registrations.
10-15	(4) "Wholesaler" means an entity that is either:
10-16	(i) Registered pursuant to sections 21-28.6.2 and 44-49-17 of the general laws, to be
10-17	exempt from state penalties for cultivating, preparing, packaging, and selling marijuana to a
10-18	retailer or another wholesaler, but not selling marijuana to the general public; or
10-19	(ii) Exempt from state penalties under Rhode Island general laws section 21-28.6.2-3 due
10-20	to the department not issuing registrations.
10-21	21-28.6.2-2. Retailer registration. -- Except as otherwise provided in Rhode Island
10-22	general laws section 21-28.6.2-5 of this chapter:
10-23	(1) A person or an entity may apply, in accordance with the provisions of this chapter and
10-24	the regulations adopted pursuant thereto, for the issuance of a registration exempting the entity
10-25	from state prosecution and penalties for operating as a retailer pursuant to the provisions of this
10-26	chapter.
10-27	(2) Each applicant for a retailer registration shall submit application materials required by
10-28	the department and a non-refundable fee in an amount determined by the department, not to
10-29	exceed five thousand dollars ($5,000).
10-30	(3) By one year after the effective date of this chapter, the department shall have issued at
10-31	least one retailer registration per county. By two (2) years after the effective date of this chapter,
10-32	the department shall have issued at least one retailer registration per county, and up to 25 total
10-33	registrations, provided a sufficient number of qualified applicants exist. If more qualifying
10-34	applicants apply than the department will register, the department shall implement a competitive
11-1	scoring process to determine to which applicants to grant registrations, which may be varied for
11-2	geographic distribution. The scoring system shall take into account the applicant and managing
11-3	officers’ applicable experience, training, and expertise; the applicant’s plan for security and
11-4	diversion prevention; any criminal, civil, or regulatory issues encountered by other entities the
11-5	applicant and managing officers have controlled or managed; and the suitability of the proposed
11-6	location.
11-7	(4) If at any time after two (2) years after the effective date of this chapter, there are
11-8	fewer than twenty-five (25) valid and outstanding retailer registrations, with at least one
11-9	registration in each county, the department shall accept and process applications for retailer
11-10	registrations.
11-11	(5) The fee for the initial issuance of a registration as a retailer is ten thousand dollars
11-12	($10,000).
11-13	(6) A registration as a retailer may be renewed annually for a five thousand dollar
11-14	($5,000) fee. The renewal application may be submitted up to one hundred twenty (120) days
11-15	before the expiration of the retailer registration. If the department fails to approve a valid renewal
11-16	application, it shall be deemed granted sixty (60) days after its submission.
11-17	(7) If at any time beginning eighteen (18) months after the effective date of this chapter,
11-18	the department has failed to begin issuing retailer registrations or has ceased issuing retailer
11-19	registrations or renewals as required by this chapter, a retail registration shall not be required to
11-20	operate as a retailer for any person or entity that operates in a location zoned for retail use that
11-21	satisfies the requirements set forth in this chapter and any regulations adopted pursuant to the
11-22	chapter.
11-23	(8) Nothing in this section shall prohibit an entity registered as a retailer or seeking
11-24	retailer registration from also holding a wholesaler registration or seeking registration as a
11-25	wholesaler pursuant to section 21-28.6.2-3 of the Rhode Island general laws.
11-26	21-28.6.2-3. Wholesaler registration. -- Except as otherwise provided in Rhode Island
11-27	general laws section 21-28.6.2-5 of this chapter:
11-28	(1) An entity may apply, in accordance with the provisions of this chapter and the
11-29	regulations adopted pursuant thereto, for the issuance of a registration exempting the entity from
11-30	state prosecution and penalties for operating as a wholesaler pursuant to the provisions of this
11-31	chapter.
11-32	(2) Each applicant for a wholesaler registration shall submit application materials
11-33	required by the department and a non-refundable fee in an amount determined by the department,
11-34	not to exceed five thousand dollars ($5,000).
12-1	(3) By three hundred (300) days after the effective date of this chapter, the department
12-2	shall have issued at least one wholesaler registration per county, provided that qualified
12-3	applicants exist. By two (2) years after the effective date of this chapter, the department shall
12-4	have issued at least ten (10) wholesaler registrations. If more qualifying applicants apply than the
12-5	department will register, the department shall implement a competitive scoring process to
12-6	determine to which applicants to grant registrations, which may be varied for geographic
12-7	distribution. The scoring system shall take into account the applicant and managing officers’
12-8	applicable experience, training, and expertise; the applicant’s plan for security and diversion
12-9	prevention; any criminal, civil, or regulatory issues encountered by other entities the applicant
12-10	and managing officers have controlled or managed; and the suitability of the proposed location.
12-11	(4) If at any time after two (2) years after the effective date of this chapter, there are
12-12	fewer valid wholesaler registrations than specified in subdivision (3), the department shall accept
12-13	and process applications for wholesaler registrations. In addition, the department may, at its
12-14	discretion, grant additional wholesaler registrations.
12-15	(5) The fee for the initial issuance of a registration as a wholesaler is ten thousand dollars
12-16	($10,000).
12-17	(6) A registration as a wholesaler may be renewed annually for a five thousand ($5,000)
12-18	dollar fee. The renewal application may be submitted up to one hundred twenty (120) days before
12-19	the expiration of the wholesaler registration. If the department fails to approve a valid renewal
12-20	application, it shall be deemed granted sixty (60) days after its submission.
12-21	(7) If at any time beginning eighteen (18) months after the effective date of this chapter,
12-22	the department has failed to begin issuing wholesaler registrations or has ceased issuing
12-23	wholesaler registrations in accordance with this chapter, a wholesaler registration shall not be
12-24	required to operate as a wholesaler for any person or entity that operates in a location zoned for
12-25	agricultural or industrial use that satisfies the requirements set forth in this chapter and any
12-26	regulations adopted pursuant to the chapter.
12-27	(8) Nothing in this section shall prohibit an entity registered as a wholesaler or seeking
12-28	wholesaler registration from also holding a retailer registration or seeking registration as a retailer
12-29	pursuant to section 21-28.6.2-3 of the Rhode Island general laws.
12-30	21-28.6.2-4. Safety compliance facility registration. -- Except as otherwise provided in
12-31	Rhode Island general laws section 21-28.6.2-5 of this chapter:
12-32	(1) An entity may apply, in accordance with the provisions of this chapter and the
12-33	regulations adopted pursuant thereto, for the issuance of a registration exempting the entity from
12-34	state prosecution and penalties for operating as a safety compliance facility pursuant to the
13-1	provisions of this chapter.
13-2	(2) Each applicant for a safety compliance facility registration shall submit application
13-3	materials required by the department and a non-refundable fee in an amount determined by the
13-4	department, not to exceed five thousand dollars ($5,000).
13-5	(3) If qualified applicants exist, the department shall grant a two (2) year registration to
13-6	at least two (2) safety compliance facilities within one year of the effective date of this chapter,
13-7	provided that each facility pays a five thousand dollar ($5,000) fee. If more qualifying applicants
13-8	apply than the department will register, the department shall implement a competitive scoring
13-9	process to determine to which applicants to grant registrations, which may be varied for
13-10	geographic distribution. The scoring system shall take into account the applicant and managing
13-11	officers’ applicable experience, training, and expertise; the applicant’s plan for security and
13-12	diversion prevention; any criminal, civil, or regulatory issues encountered by other entities the
13-13	applicant and managing officers controlled or managed; the applicant’s plan for services; and the
13-14	suitability of the proposed location.
13-15	(4) If at any time after two (2) years after the effective date of this chapter, there are
13-16	fewer than two (2) valid safety compliance facility registrations, the department shall accept and
13-17	process applications for safety compliance facility registrations. In addition, the department may,
13-18	at its discretion, grant additional safety compliance facility registrations.
13-19	(5) A safety compliance facility registration may be renewed biennially for a five
13-20	thousand dollar ($5,000) fee. The renewal application may be submitted up to one hundred
13-21	twenty (120) days before the expiration of the registration. If the department fails to approve a
13-22	valid renewal application, it shall be granted sixty (60) days after its submission.
13-23	21-28.6.2-5. Ineligibility for registration. -- A retailer, wholesaler, or safety compliance
13-24	facility may not operate, and a prospective retailer, wholesaler, or safety compliance facility may
13-25	not apply for a registration if any of the following are true:
13-26	(1) The entity would be located within one thousand feet (1000’) of the property line of a
13-27	pre-existing public school, private school, or structure used primarily for religious services or
13-28	worship; or
13-29	(2) The entity sells intoxicating liquor for consumption on the premises.
13-30	21-28.6.2-6. Municipalities. -- Nothing shall prohibit municipalities from enacting
13-31	ordinances or regulations not in conflict with this section or with department rules regulating the
13-32	time, place, and manner of wholesaler, retailer, or safety compliance facility operations, provided
13-33	that no local government may prohibit wholesaler, retailer, or safety compliance facility
13-34	operations altogether, either expressly or though the enactment of ordinances or regulations
14-1	which make wholesaler, retailer, or safety compliance facility operations impracticable.
14-2	21-28.6.2-7. Advertising and product placement. -- (a) No retailer, wholesaler, or other
14-3	person may advertise the sale of marijuana in a manner contrary to the regulations established by
14-4	the department.
14-5	(b) Film, television, production, and other entertainment companies are prohibited from
14-6	paying for the product placement of marijuana or marijuana products in any production filmed in
14-7	Rhode Island.
14-8	21-28.6.2-8. Retailer safety insert. -- A retailer shall:
14-9	(1) Include a safety insert with all marijuana sold. The safety insert may, at the
14-10	department’s discretion, be developed and approved by the department and include, but not be
14-11	limited to, information on:
14-12	(i) Methods for administering marijuana;
14-13	(ii) Any potential dangers stemming from the use of marijuana; and
14-14	(iii) How to recognize what may be problematic usage of marijuana and obtain
14-15	appropriate services or treatment for problematic usage.
14-16	(2) Sell marijuana in its original wholesaler packaging without making any changes or
14-17	repackaging.
14-18	21-28.6.2-9. Warning label by wholesaler or safety compliance facility. -- A
14-19	wholesaler must create a unique package and label for its marijuana identifying itself as the
14-20	producer. The packaging shall include:
14-21	(1) The name and registration number of the wholesaler.
14-22	(2) If a safety compliance facility is operational, the potency of the marijuana, as
14-23	determined by testing by a safety compliance facility, represented by the percentage of
14-24	tetrahydrocannabinol by mass.
14-25	(3) A "produced on" date which reflects the date that the wholesaler finished drying and
14-26	processing the marijuana and placed it in its packaging.
14-27	(4) Warnings that state: "Consumption of marijuana impairs your ability to drive a car or
14-28	operate machinery," "Keep away from children," and, unless federal or state laws have changed,
14-29	"Possession of marijuana is illegal outside of Rhode Island and under federal law."
14-30	21-28.6.2-10. Wholesale cultivation facilities. -- All marijuana cultivated by
14-31	wholesalers shall be cultivated only in one or more enclosed, locked facilities, each of which
14-32	must have been registered with the department, unless the department has ceased issuing or failed
14-33	to begin issuing registrations. An "enclosed, locked facility" may include a building, room,
14-34	greenhouse, fully enclosed fenced-in area, or other location enclosed on all sides and equipped
15-1	with locks or other security devices that permit access only by:
15-2	(1) Employees, agents, or owners of the wholesaler, all of whom must be twenty-one (21)
15-3	years of age or older;
15-4	(2) Government employees performing their official duties;
15-5	(3) Contractors performing labor that does not include marijuana cultivation, packaging,
15-6	or processing; contractors must be accompanied by an employee, agent, or owner of the
15-7	wholesaler when they are in areas where marijuana is being grown or stored; or
15-8	(4) Members of the media, elected officials, and other individuals over the age of twenty-
15-9	one (21) touring the facility, if they are accompanied by an employee, agent, or owner of the
15-10	wholesaler.
15-11	21-28.6.2-11. Transportation of marijuana. -- A wholesaler or any person who is
15-12	acting in his or her capacity as an owner, employee, or agent of a wholesaler must have
15-13	documentation when transporting marijuana on behalf of the wholesaler that specifies the amount
15-14	of marijuana being transported, the registry identification number of the wholesaler, the date the
15-15	marijuana is being transported, and the registry identification number of the intended retailer,
15-16	other wholesaler, or safety compliance facility. If the retailer or wholesaler does not have a
15-17	registration number because the department has ceased issuing registry identification certificates
15-18	or has failed to begin issuing registry identification certificates, the retailer or wholesaler may
15-19	instead use a number of its choosing that it consistently uses on documentation in place of a
15-20	registry identification number.
15-21	21-28.6.2-12. Retailer violations. -- (a) A retailer shall not:
15-22	(1) Sell, give, or otherwise furnish marijuana or marijuana paraphernalia to any person
15-23	who is under twenty-one (21) years of age;
15-24	(2) Allow any person who is under twenty-one (21) years of age to be present inside any
15-25	room where marijuana is stored or sold by the retailer unless the person who is under twenty-one
15-26	(21) years of age is a government employee performing his or her official duties, an elected
15-27	official, a member of the media, or a contractor performing labor that does not include marijuana
15-28	cultivation, packaging, or processing;
15-29	(3) Sell, give, or otherwise furnish more than one ounce (1 oz.) of marijuana or more than
15-30	three (3) seedlings or cuttings of marijuana to a person in a single transaction;
15-31	(4) Knowingly and willfully sell, give, or otherwise furnish an amount of marijuana to a
15-32	person that would cause that person to possess more than one ounce (1 oz.) of marijuana or more
15-33	than three (3) marijuana plants, seedlings, or clones;
16-34	(5) Purchase marijuana, other than marijuana seeds, from any person other than a
16-35	licensed wholesaler or retailer;
16-36	(6) Violate regulations issued by the department;
16-37	(b) In addition to any other penalty provided pursuant to specific statutes, a retailer who
16-38	violates this section is guilty of a misdemeanor and shall be punished by a fine of not more than
16-39	one thousand dollars ($1,000).
16-40	(c) Except as otherwise provided in this subsection, in a prosecution for a violation of
16-41	Rhode Island general laws section 21-28.6.2-12, it is a complete defense that before allowing a
16-42	person who is under twenty-one (21) years of age into the room where marijuana is sold or stored,
16-43	a staff member for the retailer was shown a document which appeared to be issued by an agency
16-44	of a federal, state, tribal, or foreign sovereign government and which indicated that the person
16-45	who was allowed onto the premises of the retailer was twenty-one (21) years of age or older at the
16-46	time the person was allowed onto the premises of the retailer. The complete defense set forth in
16-47	this subsection does not apply if:
16-48	(1) The document which was shown to the person who allowed the person who is under
16-49	twenty-one (21) years of age onto the premises of the retailer was counterfeit, forged, altered, or
16-50	issued to a person other than the person who was allowed onto the premises of the retailer; and
16-51	(2) Under the circumstances, a reasonable person would have known or suspected that the
16-52	document was counterfeit, forged, altered, or issued to a person other than the person who was
16-53	allowed onto the premises.
16-54	(d) As used in this section, "marijuana paraphernalia" means equipment, products, and
16-55	materials which are used or intended for use in planting, propagating, cultivating, growing,
16-56	harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing,
16-57	analyzing, packaging, repackaging, storing, containing, concealing, ingesting, inhaling, or
16-58	otherwise introducing marijuana into the human body.
16-59	21-28.6.2-13. Wholesaler violations. -- (a) A wholesaler shall not:
16-60	(1) Allow any person who is under twenty-one (21) years of age to be present on the
16-61	premises of any of its enclosed, locked facilities where marijuana is cultivated or in any room
16-62	where the wholesaler stores or processes marijuana unless the person is a department employee or
16-63	public safety officer performing his or her duties, an elected official, a member of the media, or a
16-64	contractor performing labor unrelated to marijuana cultivation, packaging, or processing;
16-65	(2) Sell, give, or otherwise furnish marijuana to any person other than a retailer,
16-66	wholesaler, safety compliance facility, or a staff member acting on behalf of a retailer,
16-67	wholesaler, or safety compliance facility;
17-68	(3) Purchase marijuana, other than marijuana seeds, from any person other than a
17-69	wholesaler; or
17-70	(4) Purchase or sell, give, or otherwise furnish marijuana in any manner other than as is
17-71	exempted from state penalties pursuant to the provisions of this chapter and any regulations
17-72	adopted pursuant thereto.
17-73	(b) In addition to any other penalty provided pursuant to specific statutes, a person who
17-74	violates this section is guilty of a misdemeanor and shall be punished by a fine of not more than
17-75	one thousand dollars ($1,000).
17-76	(c) Except as otherwise provided in this subsection, in a prosecution for a violation of
17-77	Rhode Island general laws section 21-28.6.2-13, it is a complete defense that before allowing the
17-78	person who is under twenty-one (21) years of age onto the premises, a staff member of the
17-79	wholesaler was shown a document which appeared to be issued by an agency of a federal, state,
17-80	tribal, or foreign sovereign government and which indicated that the person who was allowed
17-81	onto the premises of the wholesaler was twenty-one (21) years of age or older at the time the
17-82	person was allowed onto the premises of the wholesaler. The complete defense set forth in this
17-83	subsection does not apply if:
17-84	(1) The document which was shown to the person who allowed the person who is under
17-85	twenty-one (21) years of age onto the premises of the wholesaler was counterfeit, forged, altered,
17-86	or issued to a person other than the person who was allowed onto the premises of the wholesaler;
17-87	and
17-88	(2) Under the circumstances, a reasonable person would have known or suspected that the
17-89	document was counterfeit, forged, altered, or issued to a person other than the person who was
17-90	allowed onto the premises.
17-91	21-28.6.2-14. Suspension or termination of registration. -- (a) The department may
17-92	suspend or terminate the registration of a retailer, wholesaler, or safety compliance facility that
17-93	commits multiple or serious violations of this chapter or reasonable regulations issued pursuant to
17-94	it.
17-95	(b) If the department has ceased issuing registrations or has not begun issuing
17-96	registrations, and a retailer, wholesaler, or safety compliance facility lacks a registration as a
17-97	result, any city or town where the retailer, wholesaler, or safety compliance facility is operating
17-98	may file for an injunction in district court if the retailer has committed multiple or serious
17-99	violations of this act or regulations issued pursuant to it.
17-100	21-28.6.2-15. Excise tax. -- An excise tax is hereby levied upon wholesalers and must be
17-101	collected respecting all marijuana sold to retailers at the rate of either fifty dollars ($50.00) per
17-102	ounce or proportionate part thereof, or an amount that the department may set that adjusts the
18-1	initial fifty dollars ($50) per ounce rate for inflation or deflation based on the consumer price
18-2	index.
18-3	21-28.6.2-16. Distribution of funds. -- The department shall apportion the money
18-4	remitted to the department from registration fees and taxes collected pursuant to this chapter in
18-5	the following manner:
18-6	(1) The department shall retain sufficient money to defray the entire cost of
18-7	administration of this chapter.
18-8	(2) After retaining sufficient money to defray the entire cost of administration of this
18-9	chapter pursuant to subdivision (1), the department shall remit the remaining money to the Rhode
18-10	Island general fund, forty percent (40%) of which must be distributed to the Rhode Island
18-11	department of health for use in voluntary programs for the prevention or treatment of the abuse of
18-12	alcohol, tobacco, or controlled substances, and ten percent (10%) of which must be spent on
18-13	clinical research into the medical efficacy of marijuana.
18-14	21-28.6.2-17. Department regulations. -- (a) The department is responsible for
18-15	administering and carrying out the provisions of this chapter.
18-16	(b) The department may adopt regulations that are necessary and convenient to
18-17	administer and carry out the provisions of this chapter.
18-18	(c) The department shall adopt regulations that:
18-19	(1) Set forth the procedures for the application for and issuance of registrations to
18-20	retailers, wholesalers, and safety compliance testing facilities, including the content and form for
18-21	an application to be registered as a retailer, wholesaler, or safety compliance facility;
18-22	(2) Specify the procedures for the collection of taxes levied pursuant to this chapter;
18-23	(3) Specify the content, form, and timing of reports, which must be completed by each
18-24	retailer, wholesaler, and safety compliance facility and which must be available for inspection by
18-25	the department. The reports shall include information on sales, expenses, inventory, and taxes and
18-26	shall be retained for at least one year after the completion of the forms;
18-27	(4) Specify the requirements for the packaging and labeling of marijuana, including those
18-28	in Rhode Island general laws section 21-28.6.2-9;
18-29	(5) Specify the requirements for the safety insert to be included with marijuana by
18-30	retailers, including those in Rhode Island general laws section 21-28.6.2-8, if the department
18-31	chooses to do so;
18-32	(6) Establish reasonable security requirements for wholesalers and retailers;
18-33	(7) Require the posting or display of the registration of a retailer, wholesaler, or safety
18-34	compliance facility;
19-1	(8) Establish restrictions on advertising for the sale of marijuana. The restrictions shall:
19-2	(i) Be in compliance with the United States Constitution and the Rhode Island
19-3	Constitution; and
19-4	(i) Be at least as restrictive as limitations on advertising tobacco products, provided that
19-5	the regulations may not prevent appropriate signs on the property of the retailer or wholesaler,
19-6	listings in business directories including phone books, listings in publications focused on
19-7	marijuana, or the sponsorship of health or not-for-profit charity or advocacy events;
19-8	(9) Establish procedures for inspecting and auditing the records or premises of a retailer,
19-9	wholesaler, or safety compliance facility;
19-10	(10) Set a schedule of civil fines for violations of this chapter and regulations issued
19-11	pursuant to this chapter;
19-12	(11) Set forth the procedures for hearings on civil fines and suspensions and revocation of
19-13	a registration as a retailer, wholesaler, or safety compliance facility for a violation of any
19-14	provision of this chapter or the regulations adopted pursuant to this chapter;
19-15	(12) Establish reasonable environmental controls to ensure that any registered
19-16	wholesalers, retailers, and safety compliance facilities minimize any harm to the environment,
19-17	adjoining and nearby landowners, and persons passing by. This may include restrictions on the
19-18	use of pesticides;
19-19	(13) Establish rules requiring wholesalers and retailers to create identification cards for
19-20	their employees and providing for the contents of the identification cards; and
19-21	(14) Establish rules for the safe transportation of marijuana.
19-22	(d) The department shall make available free of charge all forms for applications and
19-23	reports.
19-24	(e) The department shall issue all registrations as required by chapter 21-28.6.2 and
19-25	Rhode Island general laws section 44-49-17.
19-26	(f) Except as provided in this subsection, the department shall keep the name and address
19-27	of each wholesaler, retailer, and safety compliance facility and each owner, employee, or agent of
19-28	a wholesaler, retailer, and safety compliance facility confidential and refuse to disclose this
19-29	information to any individual or public or private entity, except as necessary for authorized
19-30	employees of the department to perform official duties of the department pursuant to this chapter.
19-31	The department may confirm to a state or local law enforcement officer that a retailer, wholesaler,
19-32	or safety compliance facility holds a valid registration if the law enforcement officer inquires
19-33	about the specific location or entity.
20-34	(g) The department shall not require:
20-35	(1) An individual consumer to provide a retailer with personal information other than
20-36	government-issued identification to determine the individual's age; or
20-37	(2) A retailer to acquire and record personal information about individual customers other
20-38	than information typically acquired in a financial transaction conducted at a retail liquor store.
20-39	21-28.6.2-18. Failure of department to adopt regulations. -- (a) The department shall
20-40	adopt regulations to implement this chapter and shall begin accepting applications for retailers,
20-41	wholesalers, and safety compliance facilities within one hundred eighty (180) days of the
20-42	effective date of this chapter.
20-43	(b) If the department fails to adopt regulations to implement this chapter and begins
20-44	processing applications for retailers and wholesalers within one hundred eighty (180) days of the
20-45	effective date of this chapter, any citizen may commence an action in a court of competent
20-46	jurisdiction to compel the department to perform the actions mandated pursuant to the provisions
20-47	of this chapter.
20-48	21-28.6.2-19. Advisory committee. -- (a) The governor shall appoint a twelve (12)
20-49	member advisory committee comprised of: one member of the House of Representatives; one
20-50	member of the Senate; one representative of the department of business regulation; one physician
20-51	with experience in medical marijuana issues; one economist; one board member or principal
20-52	officer of a registered safety compliance facility; one individual with experience in policy
20-53	development or implementation in the field of marijuana policy; one public health professional;
20-54	one sociologist; one attorney familiar with first amendment law; one expert in criminal justice;
20-55	and one researcher.
20-56	(b) The advisory committee shall meet at least two (2) times per year for the purpose of
20-57	collecting information, evaluating the effects of this chapter, and making recommendations to the
20-58	department, including:
20-59	(1) The content of safety inserts;
20-60	(2) Whether additional warning labels should be added;
20-61	(3) Strategies for educating physicians and the public about research relating to
20-62	marijuana’s benefits and risks;
20-63	(4) Any effect on organized crime in the state;
20-64	(5) Any effect on criminal sales of marijuana in middle and high schools;
20-65	(6) Quality control and labeling standards;
20-66	(7) Recommendations on restrictions on advertising;
20-67	(8) Recommendations for reporting and data monitoring related to beneficial and adverse
20-68	effects of marijuana; and
21-1	(9) An update on the latest research related to driving under the influence of marijuana,
21-2	along with recommendations regarding policies for roadside sobriety tests and any recommended
21-3	changes to driving under the influence statutes.
21-4	(c) The department shall submit to the legislature an annual report by the first Thursday
21-5	of every year, which shall include:
21-6	(1) The direct revenue and costs related to implementing this chapter, including revenue
21-7	from taxes, fines, and fees;
21-8	(2) The number of registrations suspended and revoked, and the nature of revocations;
21-9	and
21-10	(3) The findings of the advisory committee.
21-11	SECTION 2. Sections 21-28-4.01, 21-28-4.01.1, and 21-28-4.01.2 of the General Laws in
21-12	Chapter 21-28 entitled "Uniform Controlled Substances Act" are hereby amended to read as
21-13	follows:
21-14	21-28-4.01. Prohibited acts A -- Penalties. [Effective until April 1, 2013.] -- (a) (1)
21-15	Except as authorized by this chapter, it shall be unlawful for any person to manufacture, deliver,
21-16	or possess with intent to manufacture or deliver a controlled substance.
21-17	(2) Any person who is not a drug addicted person, as defined in section 21-28-1.02(18),
21-18	who violates this subsection with respect to a controlled substance classified in schedule I or II,
21-19	except the substance classified as marijuana, is guilty of a crime and upon conviction may be
21-20	imprisoned to a term up to life, or fined not more than five hundred thousand dollars ($500,000)
21-21	nor less than ten thousand dollars ($10,000), or both.
21-22	(3) Where the deliverance as prohibited in this subsection shall be the proximate cause of
21-23	death to the person to whom the controlled substance is delivered, it shall not be a defense that
21-24	the person delivering the substance was at the time of delivery, a drug addicted person as defined
21-25	in section 21-28-1.02(18).
21-26	(4) Any person, except as provided for in subdivision (2) of this subsection, who violates
21-27	this subsection with respect to:
21-28	(i) A controlled substance classified in schedule I or II, is guilty of a crime and upon
21-29	conviction may be imprisoned for not more than thirty (30) years, or fined not more than one
21-30	hundred thousand dollars ($100,000) nor less than three thousand dollars ($3,000), or both;
21-31	(ii) A controlled substance classified in schedule III or IV, is guilty of a crime and upon
21-32	conviction may be imprisoned for not more than twenty (20) years, or fined not more than forty
21-33	thousand dollars ($40,000), or both; provided, with respect to a controlled substance classified in
21-34	schedule III(d), upon conviction may be imprisoned for not more than five (5) years, or fined not
22-1	more than twenty thousand dollars ($20,000), or both.
22-2	(iii) A controlled substance classified in schedule V, is guilty of a crime and upon
22-3	conviction may be imprisoned for not more than one year, or fined not more than ten thousand
22-4	dollars ($10,000), or both.
22-5	(b) (1) Except as authorized by this chapter, it is unlawful for any person to create,
22-6	deliver, or possess with intent to deliver, a counterfeit substance.
22-7	(2) Any person who violates this subsection with respect to:
22-8	(i) A counterfeit substance classified in schedule I or II, is guilty of a crime and upon
22-9	conviction may be imprisoned for not more than thirty (30) years, or fined not more than one
22-10	hundred thousand dollars ($100,000), or both;
22-11	(ii) A counterfeit substance classified in schedule III or IV, is guilty of a crime and upon
22-12	conviction may be imprisoned for not more than twenty (20) years, or fined not more than forty
22-13	thousand dollars ($40,000), or both; provided, with respect to a controlled substance classified in
22-14	schedule III(d), upon conviction may be imprisoned for not more than five (5) years, or fined not
22-15	more than twenty thousand dollars ($20,000) or both.
22-16	(iii) A counterfeit substance classified in schedule V, is guilty of a crime and upon
22-17	conviction may be imprisoned for not more than one year, or fined not more than ten thousand
22-18	dollars ($10,000), or both.
22-19	(c) (1) It shall be unlawful for any person knowingly or intentionally to possess a
22-20	controlled substance, unless the substance was obtained directly from or pursuant to a valid
22-21	prescription or order of a practitioner while acting in the course of his or her professional
22-22	practice, or except as otherwise authorized by this chapter.
22-23	(2) Any person who violates this subsection with respect to:
22-24	(i) A controlled substance classified in schedules I, II and III, IV, and V, except the
22-25	substance classified as marijuana, is guilty of a crime and upon conviction may be imprisoned for
22-26	not more than three (3) years or fined not less than five hundred dollars ($500) nor more than five
22-27	thousand dollars ($5,000), or both;
22-28	(ii) A controlled substance classified in schedule I as marijuana is guilty of a
22-29	misdemeanor and upon conviction may be imprisoned for not more than one year or fined not less
22-30	than two hundred dollars ($200) nor more than five hundred dollars ($500), or both.
22-31	(3) Additionally every person convicted or who pleads nolo contendere under paragraph
22-32	(2)(i) of this subsection or convicted or who pleads nolo contendere a second or subsequent time
22-33	under paragraph (2)(ii) of this subsection, who is not sentenced to a term of imprisonment to
22-34	serve for the offense, shall be required to:
23-1	(i) Perform, up to one hundred (100) hours of community service;
23-2	(ii) Attend and complete a drug counseling and education program as prescribed by the
23-3	director of the department of mental health, retardation and hospitals and pay the sum of four
23-4	hundred dollars ($400) to help defray the costs of this program which shall be deposited as
23-5	general revenues. Failure to attend may result after hearing by the court in jail sentence up to one
23-6	year;
23-7	(iii) The court shall not suspend any part or all of the imposition of the fee required by
23-8	this subsection, unless the court finds an inability to pay;
23-9	(iv) If the offense involves the use of any automobile to transport the substance or the
23-10	substance is found within an automobile, then a person convicted or who pleads nolo contendere
23-11	under paragraphs (2)(i) and (ii) of this subsection shall be subject to a loss of license for a period
23-12	of six (6) months for a first offense and one year for each offense after this.
23-13	(4) All fees assessed and collected pursuant to paragraph (3)(ii) of this subsection shall
23-14	be deposited as general revenues and shall be collected from the person convicted or who pleads
23-15	nolo contendere before any other fines authorized by this chapter.
23-16	(d) It shall be unlawful for any person to manufacture, distribute, or possess with intent
23-17	to manufacture or distribute, an imitation controlled substance. Any person who violates this
23-18	subsection is guilty of a crime, and upon conviction shall be subject to the same term of
23-19	imprisonment and/or fine as provided by this chapter for the manufacture or distribution of the
23-20	controlled substance which the particular imitation controlled substance forming the basis of the
23-21	prosecution was designed to resemble and/or represented to be; but in no case shall the
23-22	imprisonment be for more than five (5) years nor the fine for more than twenty thousand dollars
23-23	($20,000).
23-24	(e) It shall be unlawful for a practitioner to prescribe, order, distribute, supply, or sell an
23-25	anabolic steroid or human growth hormone for: (1) enhancing performance in an exercise, sport,
23-26	or game, or (2) hormonal manipulation intended to increase muscle mass, strength, or weight
23-27	without a medical necessity. Any person who violates this subsection is guilty of a misdemeanor
23-28	and upon conviction may be imprisoned for not more than six (6) months or a fine of not more
23-29	than one thousand dollars ($1,000), or both.
23-30	21-28-4.01. Prohibited acts A -- Penalties. [Effective April 1, 2013.] -- (a) (1) Except
23-31	as authorized by this chapter, or as exempted from criminal penalties pursuant to chapters 21-
23-32	28.6.1, 21-28.6.2 or 44-19-17, it shall be unlawful for any person to manufacture, deliver, or
23-33	possess with intent to manufacture or deliver a controlled substance.
24-34	(2) Any person who is not a drug addicted person, as defined in section 21-28-1.02(18),
24-35	who violates this subsection with respect to a controlled substance classified in schedule I or II,
24-36	except the substance classified as marijuana, is guilty of a crime and upon conviction may be
24-37	imprisoned to a term up to life, or fined not more than five hundred thousand dollars ($500,000)
24-38	nor less than ten thousand dollars ($10,000), or both.
24-39	(3) Where the deliverance as prohibited in this subsection shall be the proximate cause of
24-40	death to the person to whom the controlled substance is delivered, it shall not be a defense that
24-41	the person delivering the substance was at the time of delivery, a drug addicted person as defined
24-42	in section 21-28-1.02(18).
24-43	(4) Any person, except as provided for in subdivision (2) of this subsection, who violates
24-44	this subsection with respect to:
24-45	(i) A controlled substance classified in schedule I or II, except the substance classified as
24-46	marijuana, is guilty of a crime and upon conviction may be imprisoned for not more than thirty
24-47	(30) years, or fined not more than one hundred thousand dollars ($100,000) nor less than three
24-48	thousand dollars ($3,000), or both;
24-49	(ii) The manufacture of three (3) or fewer mature, flowering marijuana plants by a person
24-50	under twenty-one (21) years of age, is guilty of a crime and upon conviction may be imprisoned
24-51	for not more than five (5) years, or fined not more than three thousand dollars ($3,000), or both.
24-52	(iii) The manufacture of four (4) or more mature, flowering marijuana plants, is guilty of
24-53	a crime and upon conviction may be imprisoned for not more than ten (10) years, or fined not
24-54	more than one hundred thousand dollars ($100,000), nor less than one thousand dollars ($1,000),
24-55	or both.
24-56	(iv) The delivery of marijuana, is guilty of a crime and upon conviction may be
24-57	imprisoned for not more than ten (10) years, or fined not more than one hundred thousand dollars
24-58	($100,000) nor less than one thousand dollars ($1,000), or both.
24-59	~~(ii)~~(v) A controlled substance classified in schedule III or IV, is guilty of a crime and
24-60	upon conviction may be imprisoned for not more than twenty (20) years, or fined not more than
24-61	forty thousand dollars ($40,000), or both; provided, with respect to a controlled substance
24-62	classified in schedule III(d), upon conviction may be imprisoned for not more than five (5) years,
24-63	or fined not more than twenty thousand dollars ($20,000), or both.
24-64	~~(iii)~~(vi) A controlled substance classified in schedule V, is guilty of a crime and upon
24-65	conviction may be imprisoned for not more than one year, or fined not more than ten thousand
24-66	dollars ($10,000), or both.
24-67	(b)(1) Except as authorized by this chapter, it is unlawful for any person to create,
24-68	deliver, or possess with intent to deliver, a counterfeit substance.
25-1	(2) Any person who violates this subsection with respect to:
25-2	(i) A counterfeit substance classified in schedule I or II, is guilty of a crime and upon
25-3	conviction may be imprisoned for not more than thirty (30) years, or fined not more than one
25-4	hundred thousand dollars ($100,000), or both;
25-5	(ii) A counterfeit substance classified in schedule III or IV, is guilty of a crime and upon
25-6	conviction may be imprisoned for not more than twenty (20) years, or fined not more than forty
25-7	thousand dollars ($40,000), or both; provided, with respect to a controlled substance classified in
25-8	schedule III(d), upon conviction may be imprisoned for not more than five (5) years, or fined not
25-9	more than twenty thousand dollars ($20,000) or both.
25-10	(iii) A counterfeit substance classified in schedule V, is guilty of a crime and upon
25-11	conviction may be imprisoned for not more than one year, or fined not more than ten thousand
25-12	dollars ($10,000), or both.
25-13	(c)(1) It shall be unlawful for any person knowingly or intentionally to possess a
25-14	controlled substance, unless the substance was obtained directly from or pursuant to a valid
25-15	prescription or order of a practitioner while acting in the course of his or her professional
25-16	practice, or except as otherwise authorized by this chapter or exempt from arrest by chapters 21-
25-17	28.6.1, 21-28.6.2 or 44-49-17.
25-18	(2) Any person who violates this subsection with respect to:
25-19	(i) A controlled substance classified in schedules I, II and III, IV, and V, except the
25-20	substance classified as marijuana, is guilty of a crime and upon conviction may be imprisoned for
25-21	not more than three (3) years or fined not less than five hundred dollars ($500) nor more than five
25-22	thousand dollars ($5,000), or both;
25-23	(ii) More than one ounce (1 oz.) of a controlled substance classified in schedule I as
25-24	marijuana is guilty of a misdemeanor except for those persons subject to subdivision 21-28-
25-25	4.01(a)(1) and upon conviction may be imprisoned for not more than one year or fined not less
25-26	than two hundred dollars ($200) nor more than five hundred dollars ($500), or both.
25-27	(iii) Notwithstanding any public, special or general laws to the contrary, the possession
25-28	of one ounce (1 oz.) or less of marijuana by a person who is eighteen (18) years of age or older
25-29	but who is less than twenty-one (21) years of age and who is not exempted from penalties
25-30	pursuant to chapter 21-28.6 shall constitute a civil offense, rendering the offender liable to a civil
25-31	penalty in the amount of one hundred fifty dollars ($150) and forfeiture of the marijuana, but not
25-32	to any other form of criminal or civil punishment or disqualification. Notwithstanding any public,
25-33	special or general laws to the contrary, this civil penalty of one hundred fifty dollars ($150) and
25-34	forfeiture of the marijuana shall apply if the offense is the first (1st) or second (2nd) violation
26-1	within the previous eighteen (18) months.
26-2	(iv) Notwithstanding any public, special or general laws to the contrary, possession of
26-3	one ounce (1 oz.) or less of marijuana by a person who is under the age of eighteen (18) years and
26-4	who is not exempted from penalties pursuant to chapter 21-28.6 shall constitute a civil offense,
26-5	rendering the offender liable to a civil penalty in the amount of one hundred fifty dollars ($150)
26-6	and forfeiture of the marijuana; provided the minor offender completes an approved drug
26-7	awareness program and community service as determined by the court. If the person under the
26-8	age of eighteen (18) years fails to complete an approved drug awareness program and community
26-9	service within one year of the offense, the penalty shall be a three hundred dollar ($300) civil fine
26-10	and forfeiture of the marijuana, except that if no drug awareness program or community service is
26-11	available, the penalty shall be a fine of one hundred fifty dollars ($150) and forfeiture of the
26-12	marijuana. The parents or legal guardian of any offender under the age of eighteen (18) shall be
26-13	notified of the offense and the availability of a drug awareness and community service program.
26-14	The drug awareness program must be approved by the court, but shall, at a minimum, provide
26-15	four (4) hours of instruction or group discussion, and ten (10) hours of community service.
26-16	Notwithstanding any other public, special or general laws to the contrary, this civil penalty shall
26-17	apply if the offense is the first (1st) or second (2nd) violation within the previous eighteen (18)
26-18	months.
26-19	(v) Notwithstanding any public, special, or general laws to the contrary, a person not
26-20	exempted from penalties pursuant to chapter 21-28.6 found in possession of one ounce (1 oz.) or
26-21	less of marijuana is guilty of a misdemeanor and upon conviction may be imprisoned for not
26-22	more than thirty (30) days or fined not less than two hundred dollars ($200) nor more than five
26-23	hundred dollars ($500), or both, if that person has been previously adjudicated on a violation for
26-24	possession of less than one ounce (1 oz.) of marijuana under subparagraphs 21-28-4.01(c)(2)(iii)
26-25	or 21-28-4.01(c)(2)(iv) two (2) times in the eighteen (18) months prior to the third (3rd) offense.
26-26	(vi) Any unpaid civil fine issued under subparagraphs 21-28-4.01(c)(2)(iii) or 21-28-
26-27	4.01(c)(2)(iv) shall double to three hundred dollars ($300) if not paid within thirty (30) days of
26-28	the offense. The civil fine shall double again to six hundred dollars ($600) if it has not been paid
26-29	within ninety (90) days.
26-30	(vii) No person may be arrested for a violation of subparagraphs 21-28-4.01(c)(2)(iii) or
26-31	21-28-4.01(c)(2)(iv) except as provided in this subparagraph. Any person in possession of an
26-32	identification card, license, or other form of identification issued by the state or any state, city or
26-33	town, or any college or university, who fails to produce the same upon request of a police officer
26-34	who informs the person that he or she has been found in possession of what appears to the officer
27-1	to be one ounce (1 oz.) or less of marijuana, or any person without any such forms of
27-2	identification that fails or refuses to truthfully provide his or her name, address, and date of birth
27-3	to a police officer who has informed such person that the officer intends to provide such
27-4	individual with a citation for possession of one ounce (1 oz.) or less of marijuana, may be
27-5	arrested.
27-6	(viii) No violation of subparagraphs 21-28-4.01(c)(2)(iii) or 21-28-4.01(c)(2)(iv) shall be
27-7	considered a violation of parole or probation.
27-8	(ix) Any records collected by any state agency or tribunal that include personally
27-9	identifiable information about violations of subparagraphs 21-28-4.01(c)(2)(iii) or 21-28-
27-10	4.01(c)(2)(iv) shall be sealed eighteen (18) months after the payment of said civil fine.
27-11	(3) Jurisdiction. - Any and all violations of subparagraphs 21-28-4.01(c)(2)(iii) and 21-
27-12	28-4.01(c)(2)(iv) shall be the exclusive jurisdiction of the Rhode Island traffic tribunal. All
27-13	money associated with the civil fine issued under subparagraphs 21-28-4.01(c)(2)(iii) or 21-28-
27-14	4.01(c)(2)(iv) shall be payable to the Rhode Island traffic tribunal. Fifty percent (50%) of all fines
27-15	collected by the Rhode Island traffic tribunal from civil penalties issued pursuant to
27-16	subparagraphs 21-28-4.01(c)(2)(iii) or 21-28-4.01(c)(2)(iv) shall be expended on drug awareness
27-17	and treatment programs for youth.
27-18	(4) Additionally every person convicted or who pleads nolo contendere under paragraph
27-19	(2)(i) of this subsection or convicted or who pleads nolo contendere a second or subsequent time
27-20	under paragraph (2)(ii) of this subsection, who is not sentenced to a term of imprisonment to
27-21	serve for the offense, shall be required to:
27-22	(i) Perform, up to one hundred (100) hours of community service;
27-23	(ii) Attend and complete a drug counseling and education program as prescribed by the
27-24	director of the department of mental health, retardation and hospitals and pay the sum of four
27-25	hundred dollars ($400) to help defray the costs of this program which shall be deposited as
27-26	general revenues. Failure to attend may result after hearing by the court in jail sentence up to one
27-27	year;
27-28	(iii) The court shall not suspend any part or all of the imposition of the fee required by
27-29	this subsection, unless the court finds an inability to pay;
27-30	(iv) If the offense involves the use of any automobile to transport the substance or the
27-31	substance is found within an automobile, then a person convicted or who pleads nolo contendere
27-32	under paragraphs (2)(i) and (ii) of this subsection shall be subject to a loss of license for a period
27-33	of six (6) months for a first offense and one year for each offense after this.
28-34	(5) All fees assessed and collected pursuant to paragraph (3)(ii) of this subsection shall
28-35	be deposited as general revenues and shall be collected from the person convicted or who pleads
28-36	nolo contendere before any other fines authorized by this chapter.
28-37	(d) It shall be unlawful for any person to manufacture, distribute, or possess with intent
28-38	to manufacture or distribute, an imitation controlled substance. Any person who violates this
28-39	subsection is guilty of a crime, and upon conviction shall be subject to the same term of
28-40	imprisonment and/or fine as provided by this chapter for the manufacture or distribution of the
28-41	controlled substance which the particular imitation controlled substance forming the basis of the
28-42	prosecution was designed to resemble and/or represented to be; but in no case shall the
28-43	imprisonment be for more than five (5) years nor the fine for more than twenty thousand dollars
28-44	($20,000).
28-45	(e) It shall be unlawful for a practitioner to prescribe, order, distribute, supply, or sell an
28-46	anabolic steroid or human growth hormone for: (1) enhancing performance in an exercise, sport,
28-47	or game, or (2) hormonal manipulation intended to increase muscle mass, strength, or weight
28-48	without a medical necessity. Any person who violates this subsection is guilty of a misdemeanor
28-49	and upon conviction may be imprisoned for not more than six (6) months or a fine of not more
28-50	than one thousand dollars ($1,000), or both.
28-51	21-28-4.01.1. Minimum sentence -- Certain quantities of controlled substances. -- (a)
28-52	Except as authorized by this chapter, it shall be unlawful for any person to manufacture, sell, or
28-53	possess with intent to manufacture, or sell, a controlled substance classified in schedules I or II
28-54	(excluding marijuana) or to possess or deliver the following enumerated quantities of certain
28-55	controlled substances:
28-56	(1) One ounce (1 oz.) to one kilogram (1 kg.) of a mixture or substance containing a
28-57	detectable amount of heroin;
28-58	(2) One ounce (1 oz.) to one kilogram (1 kg.) of a mixture or substance containing a
28-59	detectable amount of:
28-60	(i) Coca leaves, except coca leaves and extracts of coca leaves from which cocaine,
28-61	ecgonine, and derivatives of ecgonine or their salts have been removed;
28-62	(ii) Cocaine, its salts, optical and geometric isomers, and salts of isomers;
28-63	(iii) Ecgonine, its derivatives, their salts, isomers, and salts of isomers; or
28-64	(iv) Any compound, mixture, or preparation which contains any quantity of any of the
28-65	substances referred to in paragraphs (i) -- (iii) of this subdivision;
28-66	(3) One gram (1 g.) to ten grams (10 gs.) of phencyclidine (PCP) or one hundred (100) to
28-67	one thousand (1,000) tablets of a mixture or substance containing a detectable amount of
28-68	phencyclidine (PCP); or
29-1	(4) One-tenth of a gram (0.1 g.) to one gram (1 g.) of lysergic acid diethylamide (LSD)
29-2	or one hundred (100) to one thousand (1,000) tablets of a mixture or substance containing a
29-3	detectable amount of lysergic acid diethylamide (LSD)~~; or~~ .
29-4	~~(5) One kilogram (1 kg.) to five (5 kgs.) kilograms of a mixture containing a detectable~~
29-5	~~amount of marijuana.~~
29-6	(b) Any person who violates this section shall be guilty of a crime, and upon conviction,
29-7	may be imprisoned for a term up to fifty (50) years and fined not more than five hundred
29-8	thousand dollars ($500,000).
29-9	21-28-4.01.2. Minimum sentence -- Certain quantities of controlled substances. -- (a)
29-10	Except as authorized by the chapter, it shall be unlawful for any person to possess, manufacture,
29-11	sell, or deliver the following enumerated quantities of certain controlled substances:
29-12	(1) More than one kilogram (1 kg.) of a mixture or substance containing a detectable
29-13	amount of heroin;
29-14	(2) More than one kilogram (1 kg.) of a mixture or substance containing a detectable
29-15	amount of
29-16	(i) Coca leaves, except coca leaves and extracts of coca leaves from which cocaine,
29-17	ecgonine, and derivatives of ecgonine or their salts have been removed;
29-18	(ii) Cocaine, its salts, optical and geometric isomers, and salts of isomers;
29-19	(iii) Ecgonine, its derivatives, their salts, isomers, and salts of isomers; or
29-20	(iv) Any compound, mixture, or preparation which contains any quantity of any of the
29-21	substances referred to in paragraphs (i) -- (iii) of this subdivision;
29-22	(3) More than ten grams (10 gs.) of phencyclidine (PCP) or more than one thousand
29-23	(1,000) tablets of a mixture or substance containing a detectable amount of phencyclidine (PCP);
29-24	or
29-25	(4) More than one gram (1 g.) of lysergic acid diethylamide (LSD); or more than one
29-26	thousand (1,000) tablets of a mixture or substance containing a detectable amount of lysergic acid
29-27	diethylamide (LSD)~~; or~~ .
29-28	~~(5) More than five kilograms (5 kgs.) of a mixture containing a detectable amount of~~
29-29	~~marijuana.~~
29-30	(b) Any person who violates this section shall be guilty of a crime, and upon conviction,
29-31	may be imprisoned for a term up to life and fined not more than one million dollars ($1,000,000).
29-32	SECTION 3. Chapter 21-28 of the General Laws entitled "Uniform Controlled
29-33	Substances Act" is hereby amended by adding thereto the following section:
30-34	21-28-4.23. Marijuana exemption. -- The penalties provided for in this chapter do not
30-35	apply to those exempted from criminal penalties pursuant to sections 21-28.6.1, 21-28.6.2 and 44-
30-36	49-17.
30-37	SECTION 4. Section 31-27-2 of the General Laws in Chapter 31-27 entitled "Motor
30-38	Vehicle Offenses" is hereby amended to read as follows:
30-39	31-27-2. Driving under influence of liquor or drugs. -- (a) Whoever drives or
30-40	otherwise operates any vehicle in the state while under the influence of any intoxicating liquor,
30-41	drugs, toluene, or any controlled substance as defined in chapter 28 of title 21, or any
30-42	combination of these, shall be guilty of a misdemeanor except as provided in subdivision (d)(3)
30-43	and shall be punished as provided in subsection (d) of this section.
30-44	(b)(1) Any person charged under subsection (a) of this section whose blood alcohol
30-45	concentration is eight one-hundredths of one percent (.08%) or more by weight as shown by a
30-46	chemical analysis of a blood, breath, or urine sample shall be guilty of violating subsection (a) of
30-47	this section. This provision shall not preclude a conviction based on other admissible evidence.
30-48	Proof of guilt under this section may also be based on evidence that the person charged was under
30-49	the influence of intoxicating liquor, drugs, toluene, or any controlled substance defined in chapter
30-50	28 of title 21, or any combination of these, to a degree which rendered the person incapable of
30-51	safely operating a vehicle. The fact that any person charged with violating this section is or has
30-52	been legally entitled to use alcohol or a drug shall not constitute a defense against any charge of
30-53	violating this section.
30-54	(2) Whoever drives or otherwise operates any vehicle in the state with a blood presence
30-55	of any scheduled controlled substance as defined within chapter 28 of title 21, as shown by
30-56	analysis of a blood or urine sample, shall be guilty of a misdemeanor and shall be punished as
30-57	provided in subsection (d) of this section. A person twenty-one (21) years of age or older or a
30-58	person exempt from criminal penalties for the medical use of marijuana pursuant to chapter 21-
30-59	28.6 of the general laws shall not be considered under the influence of marijuana solely because
30-60	of the presence of marijuana metabolites or components of marijuana unless the concentration of
30-61	components of marijuana is proven to be sufficient to cause impairment.
30-62	(c) In any criminal prosecution for a violation of subsection (a) of this section, evidence
30-63	as to the amount of intoxicating liquor, toluene, or any controlled substance as defined in chapter
30-64	28 of title 21, or any combination of these, in the defendant's blood at the time alleged as shown
30-65	by a chemical analysis of the defendant's breath, blood, or urine or other bodily substance shall be
30-66	admissible and competent, provided that evidence is presented that the following conditions have
30-67	been complied with:
31-68	(1) The defendant has consented to the taking of the test upon which the analysis is
31-69	made. Evidence that the defendant had refused to submit to the test shall not be admissible unless
31-70	the defendant elects to testify.
31-71	(2) A true copy of the report of the test result was mailed within seventy-two (72) hours
31-72	of the taking of the test to the person submitting to a breath test.
31-73	(3) Any person submitting to a chemical test of blood, urine, or other body fluids shall
31-74	have a true copy of the report of the test result mailed to him or her within thirty (30) days
31-75	following the taking of the test.
31-76	(4) The test was performed according to methods and with equipment approved by the
31-77	director of the department of health of the state of Rhode Island and by an authorized individual.
31-78	(5) Equipment used for the conduct of the tests by means of breath analysis had been
31-79	tested for accuracy within thirty (30) days preceding the test by personnel qualified as
31-80	hereinbefore provided, and breathalyzer operators shall be qualified and certified by the
31-81	department of health within three hundred sixty-five (365) days of the test.
31-82	(6) The person arrested and charged with operating a motor vehicle while under the
31-83	influence of intoxicating liquor, toluene, or any controlled substance as defined in chapter 28 of
31-84	title 21, or, any combination of these in violation of subsection (a) of this section was afforded the
31-85	opportunity to have an additional chemical test. The officer arresting or so charging the person
31-86	shall have informed the person of this right and afforded him or her a reasonable opportunity to
31-87	exercise this right, and a notation to this effect is made in the official records of the case in the
31-88	police department. Refusal to permit an additional chemical test shall render incompetent and
31-89	inadmissible in evidence the original report.
31-90	(d)(1)(i) Every person found to have violated subdivision (b)(1) of this section shall be
31-91	sentenced as follows: for a first violation whose blood alcohol concentration is eight one-
31-92	hundredths of one percent (.08%) but less than one-tenth of one percent (.1%) by weight or who
31-93	has a blood presence of any scheduled controlled substance as defined in subdivision (b)(2) shall
31-94	be subject to a fine of not less than one hundred dollars ($100) nor more than three hundred
31-95	dollars ($300), shall be required to perform ten (10) to sixty (60) hours of public community
31-96	restitution, and/or shall be imprisoned for up to one year. The sentence may be served in any unit
31-97	of the adult correctional institutions in the discretion of the sentencing judge and/or shall be
31-98	required to attend a special course on driving while intoxicated or under the influence of a
31-99	controlled substance; provided, however, that the court may permit a servicemember or veteran to
31-100	complete any court-approved counseling program administered or approved by the Veterans'
31-101	Administration, and his or her driver's license shall be suspended for thirty (30) days up to one
31-102	hundred eighty (180) days.
32-1	(ii) Every person convicted of a first violation whose blood alcohol concentration is one-
32-2	tenth of one percent (.1%) by weight or above but less than fifteen hundredths of one percent
32-3	(.15%) or whose blood alcohol concentration is unknown shall be subject to a fine of not less than
32-4	one hundred ($100) dollars nor more than four hundred dollars ($400) and shall be required to
32-5	perform ten (10) to sixty (60) hours of public community restitution and/or shall be imprisoned
32-6	for up to one year. The sentence may be served in any unit of the adult correctional institutions in
32-7	the discretion of the sentencing judge. The person's driving license shall be suspended for a
32-8	period of three (3) months to twelve (12) months. The sentencing judge shall require attendance
32-9	at a special course on driving while intoxicated or under the influence of a controlled substance
32-10	and/or alcoholic or drug treatment for the individual; provided, however, that the court may
32-11	permit a servicemember or veteran to complete any court-approved counseling program
32-12	administered or approved by the Veterans' Administration.
32-13	(iii) Every person convicted of a first offense whose blood alcohol concentration is
32-14	fifteen hundredths of one percent (.15%) or above, or who is under the influence of a drug,
32-15	toluene, or any controlled substance as defined in subdivision (b)(1) shall be subject to a fine of
32-16	five hundred dollars ($500) and shall be required to perform twenty (20) to sixty (60) hours of
32-17	public community restitution and/or shall be imprisoned for up to one year. The sentence may be
32-18	served in any unit of the adult correctional institutions in the discretion of the sentencing judge.
32-19	The person's driving license shall be suspended for a period of three (3) months to eighteen (18)
32-20	months. The sentencing judge shall require attendance at a special course on driving while
32-21	intoxicated or under the influence of a controlled substance and/or alcohol or drug treatment for
32-22	the individual; provided, however, that the court may permit a servicemember or veteran to
32-23	complete any court-approved counseling program administered or approved by the Veterans'
32-24	Administration.
32-25	(2)(i) Every person convicted of a second violation within a five (5) year period with a
32-26	blood alcohol concentration of eight one-hundredths of one percent (.08%) or above but less than
32-27	fifteen hundredths of one percent (.15%) or whose blood alcohol concentration is unknown or
32-28	who has a blood presence of any controlled substance as defined in subdivision (b)(2), and every
32-29	person convicted of a second violation within a five (5) year period regardless of whether the
32-30	prior violation and subsequent conviction was a violation and subsequent conviction under this
32-31	statute or under the driving under the influence of liquor or drugs statute of any other state, shall
32-32	be subject to a mandatory fine of four hundred dollars ($400). The person's driving license shall
32-33	be suspended for a period of one year to two (2) years, and the individual shall be sentenced to
32-34	not less than ten (10) days nor more than one year in jail. The sentence may be served in any unit
33-1	of the adult correctional institutions in the discretion of the sentencing judge; however, not less
33-2	than forty-eight (48) hours of imprisonment shall be served consecutively. The sentencing judge
33-3	shall require alcohol or drug treatment for the individual; provided, however, that the court may
33-4	permit a servicemember or veteran to complete any court-approved counseling program
33-5	administered or approved by the Veterans' Administration and may prohibit that person from
33-6	operating a motor vehicle that is not equipped with an ignition interlock system for a period of
33-7	one year to two (2) years following the completion of the sentence as provided in section 31-27-
33-8	2.8.
33-9	(ii) Every person convicted of a second violation within a five (5) year period whose
33-10	blood alcohol concentration is fifteen hundredths of one percent (.15%) or above by weight as
33-11	shown by a chemical analysis of a blood, breath, or urine sample or who is under the influence of
33-12	a drug, toluene, or any controlled substance as defined in subdivision (b)(1) shall be subject to
33-13	mandatory imprisonment of not less than six (6) months nor more than one year, a mandatory fine
33-14	of not less than one thousand dollars ($1,000) and a mandatory license suspension for a period of
33-15	two (2) years from the date of completion of the sentence imposed under this subsection. The
33-16	sentencing judge shall require alcohol or drug treatment for the individual; provided, however,
33-17	that the court may permit a servicemember or veteran to complete any court approved counseling
33-18	program administered or approved by the Veterans' Administration.
33-19	(3)(i) Every person convicted of a third or subsequent violation within a five (5) year
33-20	period with a blood alcohol concentration of eight one-hundredths of one percent (.08%) or above
33-21	but less than fifteen hundredths of one percent (.15%) or whose blood alcohol concentration is
33-22	unknown or who has a blood presence of any scheduled controlled substance as defined in
33-23	subdivision (b)(2) regardless of whether any prior violation and subsequent conviction was a
33-24	violation and subsequent conviction under this statute or under the driving under the influence of
33-25	liquor or drugs statute of any other state, shall be guilty of a felony and be subject to a mandatory
33-26	fine of four hundred ($400) dollars. The person's driving license shall be suspended for a period
33-27	of two (2) years to three (3) years, and the individual shall be sentenced to not less than one year
33-28	and not more than three (3) years in jail. The sentence may be served in any unit of the adult
33-29	correctional institutions in the discretion of the sentencing judge; however, not less than forty-
33-30	eight (48) hours of imprisonment shall be served consecutively. The sentencing judge shall
33-31	require alcohol or drug treatment for the individual; provided, however, that the court may permit
33-32	a servicemember or veteran to complete any court-approved counseling program administered or
33-33	approved by the Veterans' Administration, and may prohibit that person from operating a motor
33-34	vehicle that is not equipped with an ignition interlock system for a period of two (2) years
34-1	following the completion of the sentence as provided in section 31-27-2.8.
34-2	(ii) Every person convicted of a third or subsequent violation within a five (5) year
34-3	period whose blood alcohol concentration is fifteen hundredths of one percent (.15%) above by
34-4	weight as shown by a chemical analysis of a blood, breath, or urine sample or who is under the
34-5	influence of a drug, toluene or any controlled substance as defined in subdivision (b)(1) shall be
34-6	subject to mandatory imprisonment of not less than three (3) years nor more than five (5) years, a
34-7	mandatory fine of not less than one thousand dollars ($1,000) nor more than five thousand dollars
34-8	($5,000) and a mandatory license suspension for a period of three (3) years from the date of
34-9	completion of the sentence imposed under this subsection.
34-10	(iii) In addition to the foregoing penalties, every person convicted of a third or
34-11	subsequent violation within a five (5) year period regardless of whether any prior violation and
34-12	subsequent conviction was a violation and subsequent conviction under this statute or under the
34-13	driving under the influence of liquor or drugs statute of any other state shall be subject, in the
34-14	discretion of the sentencing judge, to having the vehicle owned and operated by the violator
34-15	seized and sold by the state of Rhode Island, with all funds obtained by the sale to be transferred
34-16	to the general fund.
34-17	(4) Whoever drives or otherwise operates any vehicle in the state while under the
34-18	influence of any intoxicating liquor, drugs, toluene, or any controlled substance as defined in
34-19	chapter 28 of title 21, or any combination of these, when his or her license to operate is
34-20	suspended, revoked or cancelled for operating under the influence of a narcotic drug or
34-21	intoxicating liquor shall be guilty of a felony punishable by imprisonment for not more than three
34-22	(3) years and by a fine or not more than three thousand dollars ($3,000). The court shall require
34-23	alcohol and/or drug treatment for the individual; provided, the penalties provided for in
34-24	subdivision 31-27-2(d)(4) shall not apply to an individual who has surrendered his or her license,
34-25	and served the court ordered period of suspension, but who, for any reason, has not had their
34-26	license reinstated after the period of suspension, revocation, or suspension has expired; provided,
34-27	further the individual shall be subject to the provisions of paragraphs 31-27-2(d)(2)(i) or (ii) or
34-28	31-27-22(d)(3)(i), (ii), or (iii) regarding subsequent offenses, and any other applicable provision
34-29	of section 31-27-2.
34-30	(5) (i) For purposes of determining the period of license suspension, a prior violation
34-31	shall constitute any charge brought and sustained under the provisions of this section or section
34-32	31-27-2.1.
34-33	(ii) Any person over the age of eighteen (18) who is convicted under this section for
34-34	operating a motor vehicle while under the influence of alcohol, other drugs, or a combination of
35-1	these, while a child under the age of thirteen (13) years was present as a passenger in the motor
35-2	vehicle when the offense was committed may be sentenced to a term of imprisonment of not more
35-3	than one year and further shall not be entitled to the benefit of suspension or deferment of this
35-4	sentence. The sentence imposed under this section may be served in any unit of the adult
35-5	correctional institutions in the discretion of the sentencing judge.
35-6	(6) (i) Any person convicted of a violation under this section shall pay a highway
35-7	assessment fine of five hundred dollars ($500) which shall be deposited into the general fund. The
35-8	assessment provided for by this subsection shall be collected from a violator before any other
35-9	fines authorized by this section.
35-10	(ii) Any person convicted of a violation under this section shall be assessed a fee of
35-11	eighty-six dollars ($86).
35-12	(7) (i) If the person convicted of violating this section is under the age of eighteen (18)
35-13	years, for the first violation he or she shall be required to perform ten (10) to sixty (60) hours of
35-14	public community restitution, and the juvenile's driving license shall be suspended for a period of
35-15	six (6) months, and may be suspended for a period up to eighteen (18) months. The sentencing
35-16	judge shall also require attendance at a special course on driving while intoxicated or under the
35-17	influence of a controlled substance and alcohol or drug education and/or treatment for the
35-18	juvenile. The juvenile may also be required to pay a highway assessment fine of no more than
35-19	five hundred dollars ($500), and the assessment imposed shall be deposited into the general fund.
35-20	(ii) If the person convicted of violating this section is under the age of eighteen (18)
35-21	years, for a second or subsequent violation regardless of whether any prior violation and
35-22	subsequent conviction was a violation and subsequent under this statute or under the driving
35-23	under the influence of liquor or drugs statute of any other state, he or she shall be subject to a
35-24	mandatory suspension of his or her driving license until such time as he or she is twenty-one (21)
35-25	years of age and may, in the discretion of the sentencing judge, also be sentenced to the Rhode
35-26	Island training school for a period of not more than one year and/or a fine of not more than five
35-27	hundred dollars ($500).
35-28	(8) Any person convicted of a violation under this section may undergo a clinical
35-29	assessment at the community college of Rhode Island 's center for workforce and community
35-30	education. Should this clinical assessment determine problems of alcohol, drug abuse, or
35-31	psychological problems associated with alcoholic or drug abuse, this person shall be referred to
35-32	an appropriate facility, licensed or approved by the department of mental health, retardation and
35-33	hospitals for treatment placement, case management, and monitoring. In the case of a
35-34	servicemember or veteran, the court may order that the person be evaluated through the Veterans'
36-1	Administration. Should the clinical assessment determine problems of alcohol, drug abuse, or
36-2	psychological problems associated with alcohol or drug abuse, the person may have their
36-3	treatment, case management and monitoring administered or approved by the Veterans'
36-4	Administration.
36-5	(e) Percent by weight of alcohol in the blood shall be based upon milligrams of alcohol
36-6	per one hundred (100) cubic centimeters of blood.
36-7	(f)(1) There is established an alcohol and drug safety unit within the division of motor
36-8	vehicles to administer an alcohol safety action program. The program shall provide for placement
36-9	and follow-up for persons who are required to pay the highway safety assessment. The alcohol
36-10	and drug safety action program will be administered in conjunction with alcohol and drug
36-11	programs licensed by the department of mental health retardation and hospitals.
36-12	(2) Persons convicted under the provisions of this chapter shall be required to attend a
36-13	special course on driving while intoxicated or under the influence of a controlled substance,
36-14	and/or participate in an alcohol or drug treatment program; provided, however, that the court may
36-15	permit a servicemember or veteran to complete any court-approved counseling program
36-16	administered or approved by the Veterans' Administration. The course shall take into
36-17	consideration any language barrier which may exist as to any person ordered to attend, and shall
36-18	provide for instruction reasonably calculated to communicate the purposes of the course in
36-19	accordance with the requirements of the subsection. Any costs reasonably incurred in connection
36-20	with the provision of this accommodation shall be borne by the person being retrained. A copy of
36-21	any violation under this section shall be forwarded by the court to the alcohol and drug safety
36-22	unit. In the event that persons convicted under the provisions of this chapter fail to attend and
36-23	complete the above course or treatment program, as ordered by the judge, then the person may be
36-24	brought before the court, and after a hearing as to why the order of the court was not followed,
36-25	may be sentenced to jail for a period not exceeding one year.
36-26	(3) The alcohol and drug safety action program within the division of motor vehicles
36-27	shall be funded by general revenue appropriations.
36-28	(g) The director of the health department of the state of Rhode Island is empowered to
36-29	make and file with the secretary of state regulations which prescribe the techniques and methods
36-30	of chemical analysis of the person's body fluids or breath, and the qualifications and certification
36-31	of individuals authorized to administer this testing and analysis.
36-32	(h) Jurisdiction for misdemeanor violations of this section shall be with the district court
36-33	for persons eighteen (18) years of age or older and to the family court for persons under the age
36-34	of eighteen (18) years. The courts shall have full authority to impose any sentence authorized and
37-1	to order the suspension of any license for violations of this section. All trials in the district court
37-2	and family court of violations of the section shall be scheduled within thirty (30) days of the
37-3	arraignment date. No continuance or postponement shall be granted except for good cause shown.
37-4	Any continuances that are necessary shall be granted for the shortest practicable time. Trials in
37-5	superior court are not required to be scheduled within thirty (30) days of the arraignment date.
37-6	(i) No fines, suspensions, assessments, alcohol or drug treatment programs, course on
37-7	driving while intoxicated or under the influence of a controlled substance, public community
37-8	restitution, or jail provided for under this section can be suspended.
37-9	(j) An order to attend a special course on driving while intoxicated that shall be
37-10	administered in cooperation with a college or university accredited by the state, shall include a
37-11	provision to pay a reasonable tuition for the course in an amount not less than twenty-five dollars
37-12	($25.00), and a fee of one hundred seventy-five dollars ($175), which fee shall be deposited into
37-13	the general fund.
37-14	(k) For the purposes of this section, any test of a sample of blood, breath, or urine for the
37-15	presence of alcohol, which relies in whole or in part upon the principle of infrared light
37-16	absorption is considered a chemical test.
37-17	(l) If any provision of this section or the application of any provision shall for any reason
37-18	be judged invalid, such a judgment shall not affect, impair, or invalidate the remainder of the
37-19	section, but shall be confined in this effect to the provision or application directly involved in the
37-20	controversy giving rise to the judgment.
37-21	(m) For the purposes of this section, "servicemember" means a person who is presently
37-22	serving in the armed forces of the United States including the Coast Guard, a reserve component
37-23	thereof, or the National Guard. "Veteran" means a person who has served in the armed forces,
37-24	including the Coast Guard of the United States, a reserve component thereof, or the National
37-25	Guard, and has been discharged under other than dishonorable conditions.
37-26	SECTION 5. Section 44-11-11 of the General Laws in Chapter 44-11 entitled "Business
37-27	Corporation Tax" is hereby amended to read as follows:
37-28	44-11-11. "Net income" defined.. -- (a) (1) "Net income" means, for any taxable year
37-29	and for any corporate taxpayer, the taxable income of the taxpayer for that taxable year under the
37-30	laws of the United States, except as provided for in subsection 44-11-11(j), plus:
37-31	(i) Any interest not included in the taxable income;
37-32	(ii) Any specific exemptions;
37-33	(iii) For a captive REIT, an amount equal to the amount of the dividends paid deduction
37-34	allowed under the Internal Revenue Code for the taxable year;
38-1	(iv) The tax imposed by this chapter;
38-2	(v) Any deductions required to be added back to net income under the provisions of
38-3	paragraph (f) of this section, and minus
38-4	(vi) Interest on obligations of the United States or its possessions, and other interest
38-5	exempt from taxation by this state; and
38-6	(vii) The federal net operating loss deduction.
38-7	(2) All binding federal elections made by or on behalf of the taxpayer applicable either
38-8	directly or indirectly to the determination of taxable income shall be binding on the taxpayer
38-9	except where this chapter or its attendant regulations specifically modify or provide otherwise.
38-10	Rhode Island taxable income shall not include the "gross-up of dividends" required by the federal
38-11	Internal Revenue Code to be taken into taxable income in connection with the taxpayer's election
38-12	of the foreign tax credit.
38-13	(b) A net operating loss deduction shall be allowed which shall be the same as the net
38-14	operating loss deduction allowed under 26 U.S.C. section 172, except that:
38-15	(1) Any net operating loss included in determining the deduction shall be adjusted to
38-16	reflect the inclusions and exclusions from entire net income required by subsection (a) of this
38-17	section and section 44-11-11.1;
38-18	(2) The deduction shall not include any net operating loss sustained during any taxable
38-19	year in which the taxpayer was not subject to the tax imposed by this chapter; and
38-20	(3) The deduction shall not exceed the deduction for the taxable year allowable under 26
38-21	U.S.C. section 172; provided, that the deduction for a taxable year may not be carried back to any
38-22	other taxable year for Rhode Island purposes but shall only be allowable on a carry forward basis
38-23	for the five (5) succeeding taxable years.
38-24	(c) "Domestic international sales corporations" (referred to as DISCs), for the purposes
38-25	of this chapter, will be treated as they are under federal income tax law and shall not pay the
38-26	amount of the tax computed under section 44-11-2(a). Any income to shareholders of DISCs is to
38-27	be treated in the same manner as it is treated under federal income tax law as it exists on
38-28	December 31, 1984.
38-29	(d) A corporation which qualifies as a "foreign sales corporation" (FSC) under the
38-30	provisions of subchapter N, 26 U.S.C. section 861 et seq., and which has in effect for the entire
38-31	taxable year a valid election under federal law to be treated as a FSC, shall not pay the amount of
38-32	the tax computed under section 44-11-2(a). Any income to shareholders of FSCs is to be treated
38-33	in the same manner as it is treated under federal income tax law as it exists on January 1, 1985.
39-34	(e) As used in this section:
39-35	(1) "Affiliated group" has the same meaning as in section 1504 of the Internal Revenue
39-36	Code.
39-37	(2) "Intangible expenses and costs" includes: (A) expenses, losses and costs for, related
39-38	to, or in connection directly or indirectly with the direct or indirect acquisition, use, maintenance
39-39	or management, ownership, sale, exchange, or any other disposition of intangible property to the
39-40	extent such amounts are allowed as deductions or costs in determining taxable income before
39-41	operating loss deduction and special deductions for the taxable year under the Internal Revenue
39-42	Code; (B) losses related to or incurred in connection directly or indirectly with factoring
39-43	transactions or discounting transactions; (C) royalty, patent, technical and copyright fees; (D)
39-44	licensing fees; and (E) other similar expenses and costs.
39-45	(3) "Intangible property" means patents, patent applications, trade names, trademarks,
39-46	service marks, copyrights and similar types of intangible assets.
39-47	(4) "Interest expenses and costs" means amounts directly or indirectly allowed as
39-48	deductions under section 163 of the Internal Revenue Code for purposes of determining taxable
39-49	income under the Internal Revenue Code to the extent such expenses and costs are directly or
39-50	indirectly for, related to, or in connection with the direct or indirect acquisition, maintenance,
39-51	management, ownership, sale, exchange or disposition of intangible property.
39-52	(5) "Related member" means a person that, with respect to the taxpayer during all or any
39-53	portion of the taxable year, is a related entity, as defined in this subsection, a component member
39-54	as defined in section 1563(b) of the Internal Revenue Code, or is a person to or from whom there
39-55	is attribution of stock ownership in accordance with section 1563(e) of the Internal Revenue
39-56	Code.
39-57	(6) "Related entity" means: (A) a stockholder who is an individual, or a member of the
39-58	stockholder's family enumerated in section 318 of the Internal Revenue Code, if the stockholder
39-59	and the members of the stockholder's family own directly, indirectly, beneficially or
39-60	constructively, in the aggregate, at least fifty percent (50%) of the value of the taxpayer's
39-61	outstanding stock; (B) a stockholder, or a stockholder's partnership, limited liability company,
39-62	estate, trust or corporation, if the stockholder and the stockholder's partnership, limited liability
39-63	companies, estates, trusts and corporations own directly, indirectly, beneficially or constructively,
39-64	in the aggregate, at least fifty percent (50%) of the value of the taxpayer's outstanding stock; or
39-65	(C) a corporation, or a party related to the corporation in a manner that would require an
39-66	attribution of stock from the corporation to the party or from the party to the corporation under
39-67	the attribution rules of section 318 of the Internal Revenue Code, if the taxpayer owns, directly,
39-68	indirectly, beneficially or constructively, at least fifty percent (50%) of the value of the
40-1	corporation's outstanding stock. The attribution rules on section 318 of the Internal Revenue Code
40-2	shall apply for purposes of determining whether the ownership requirements of this subdivision
40-3	have been met.
40-4	(f) For purposes of computing its net income under this section, a corporation shall add
40-5	back otherwise deductible interest expenses and costs and intangible expenses and costs directly
40-6	or indirectly paid, accrued or incurred to, or in connection directly or indirectly with one or more
40-7	direct or indirect transactions with, one or more related members.
40-8	(1) The adjustments required in subsection (f) of this section shall not apply if the
40-9	corporation establishes by clear and convincing evidence that the adjustments are unreasonable,
40-10	as determined by the tax administrator or the corporation and the tax administrator agree in
40-11	writing to the application or use of an alternative method of apportionment under section 44-11-
40-12	15. Nothing in this subsection shall be construed to the limit or negate the tax administrator's
40-13	authority to otherwise enter into agreements and compromises otherwise allowed by law.
40-14	(2) The adjustments required in subsection (f) of this section shall not apply to such
40-15	portion of interest expenses and costs and intangible expenses and costs that the corporation can
40-16	establish by the preponderance of the evidence meets both of the following: (A) the related
40-17	member during the same income year directly or indirectly paid, accrued or incurred such portion
40-18	to a person who is not a related member; and (B) the transaction giving rise to the interest
40-19	expenses and costs or the intangible expenses and costs between the corporation and the related
40-20	member did not have as a significant purpose the avoidance of any portion of the tax due under
40-21	chapter 44-11.
40-22	(3) The adjustments required in subsection (f) shall not apply if the corporation
40-23	establishes by clear and convincing evidence, as determined by the tax administrator, that: (i) a
40-24	principal purpose of the transaction giving rise to the payment of interest was not to avoid
40-25	payment of taxes due under this chapter; (ii) the interest is paid pursuant to a contract that reflects
40-26	an arm's length rate of interest and terms; and (iii) (A) the related member was subject to tax on
40-27	its net income in this state or another state or possession of the United States or a foreign nation;
40-28	(B) a measure of said tax included the interest received from the taxpayer; and (C) the effective
40-29	rate of tax applied to the interest received by the related member is no less than the effective rate
40-30	of tax applied to the taxpayer under this chapter minus 3 percentage points.
40-31	(4) Partial Adjustments. - The add back required in subsection (f) shall not be required in
40-32	part if a portion of the add back would be unreasonable. A portion of the add back will be
40-33	considered unreasonable to the extent that the taxpayer establishes to the tax administrator by
40-34	clear and convincing evidence that interest or intangible expense was paid, accrued or incurred to
41-1	a related member that is taxed on the corresponding income by a state, U.S. possession or foreign
41-2	jurisdiction. An adjustment to the add back will be allowed based on a factor determined by the
41-3	apportioned tax rate of the related member in the other jurisdiction compared to the apportioned
41-4	tax rate of the taxpayer in this state. A taxpayer that seeks to claim this adjustment must file a
41-5	schedule that sets forth the information required by the tax administrator.
41-6	(g) Nothing in this section shall require a corporation to add to its net income more than
41-7	once any amount of interest expenses and costs or intangible expenses and costs that the
41-8	corporation pays, accrues or incurs to a related member described in subsection (b) of this
41-9	section.
41-10	(h) Any taxpayer required to make an adjustment required in subsection (f) for tax years
41-11	beginning on or after January 1, 2008, is additionally required to report to the tax administrator,
41-12	on forms required by him, the amount of any adjustments that would have been required if the
41-13	law applied to tax years beginning on or after January 1, 2007.
41-14	(i) Nothing in this section shall be construed to limit or negate the tax administrator
41-15	authority to make adjustments under section 44-11-15.
41-16	(j) Notwithstanding any federal tax law to the contrary, in computing net income for
41-17	businesses exempted from criminal penalties under section 21-28.6.1-4 or section 21-28.6-12 of
41-18	the Rhode Island general laws there shall be allowed as a deduction from state taxes all the
41-19	ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade
41-20	or business, including, but not limited to, reasonable allowance for salaries or other compensation
41-21	for personal services actually rendered.
41-22	SECTION 6. Chapter 44-49 of the General Laws entitled "Taxation of Marijuana and
41-23	Controlled Substances" is hereby amended by adding thereto the following section:
41-24	44-49-17. No tax stamp required. -- Controlled substance tax payment with a stamp or
41-25	other official indicia, as referred to in section 44-49-5, is not required for registered retailers and
41-26	wholesalers under chapters 21-28.6.1 and 21-28.6.2 and the penalties provided for in this chapter
41-27	do not apply to those acting in accordance with the laws of, and regulations enacted through the
41-28	authority of, said chapters of the general laws.
41-29	SECTION 7. This act shall take effect on April 1, 2013.

	=======
	LC00647
	=======

	EXPLANATION
	BY THE LEGISLATIVE COUNCIL
	OF
	A N A C T
	RELATING TO FOOD AND DRUGS -- TAXATION AND REGULATION OF MARIJUANA
	***

42-1	This act would create the "Marijuana Regulation, Control and Taxation Act" which
42-2	would legalize the possession of less than one ounce (1 oz.) or less of marijuana, marijuana
42-3	paraphernalia, and a limited amount of marijuana plants. The act would create a regulatory
42-4	process for the manufacture, sale and taxation of marijuana.
42-5	This act would take effect on April 1, 2013.

	=======
	LC00647
	=======

H5274