2013 -- H 5274

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LC00647

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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:

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     SECTION 1. Title 21 of the General Laws entitled "FOOD AND DRUGS" is hereby

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amended by adding thereto the following chapters:

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     CHAPTER 28.6.1

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MARIJUANA REGULATION, CONTROL AND TAXATION ACT

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     21-28.6.1-1. Short title. -- This chapter shall be known and may be cited as the

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"Marijuana Regulation, Control, and Taxation Act."

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     21-28.6.1-2. Legislative findings. -- The general assembly hereby finds and declares

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     that:

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     (1) More than seven (7) decades of arresting marijuana users has failed to prevent

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marijuana use; a study published in the American Journal of Public Health compared marijuana

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usage rates in the United States with rates in the Netherlands, where adults’ marijuana use and

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sales are de facto legal, found "no evidence to support claims that criminalization reduces

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[marijuana] use."

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     (2) More than one hundred million (100,000,000) adults in the United States, including

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the last three (3) presidents, have used marijuana, and data from the 2010 Monitoring the Future

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Survey show that despite prohibition, more than eighty percent (80%) of twelfth graders find

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marijuana "fairly easy" or "easy" to obtain.

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     (3) More than sixty thousand (60,000) people have been killed in drug cartel and

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crackdown-related violence since the beginning of the crackdown on cartels in Mexico in 2006,

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and, a significant portion of drug cartel profits come from marijuana sales in the United States.

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     (4) In June 2005, five hundred thirty (530) economists, including three (3) Nobel

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Laureates, endorsed a study on the costs of marijuana prohibition by Harvard professor Dr.

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Jeffrey Miron which estimated that taxing and regulating marijuana would yield ten billion

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dollars to fourteen billion dollars ($10,000,000,000 – $14,000,000,000) in increased revenues and

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savings, and which called for "an open and honest debate about marijuana prohibition," adding,

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"We believe such a debate will favor a regime in which marijuana is legal but taxed and regulated

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like other goods."

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     (5) Heads of state in countries that have been scarred by drug cartel violence are

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beginning to call for a re-examination of drug policies, with past and current presidents of four

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(4) Latin American countries -- current president of Guatemala, President Otto Pérez Molina,

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Cesar Gaviria of Colombia, Fernando Henrique Cardoso of Brazil, and Felipe Calderon, Vicente

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Fox, and Ernesto Zedillo of Mexico -- calling either for a discussion on decriminalizing

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marijuana or for marijuana to be made legal and regulated.

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     (6) The lack of marijuana market regulation ensures that marijuana production and

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distribution are in the hands of unlicensed growers, who are untaxed, unmonitored, and often

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cultivated on state or federal lands, and the product is not controlled or regulated for safety

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concerns.

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     (7) There were more than seven hundred fifty-seven thousand (757,000) arrests for

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marijuana offenses in the United States in 2009, which is close to the entire adult population of

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Rhode Island.

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     (8) Just over eight thousand one hundred (8,100) suspects were booked by federal law

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enforcement in 2004, about one percent of all marijuana arrests, demonstrating that nearly all

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marijuana arrests occur on the state level, and thus, state legislative action has the capacity to

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significantly change policy.

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     (9) While there were more than two thousand seven hundred and two (2,702) arrests for

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marijuana offenses in Rhode Island in 2009, thousands of serious crimes went unsolved; the

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clearance rates for homicide, rape, and robbery were only forty-three and eight tenths percent

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(43.8%), twenty-seven percent (27%), and twenty-nine and three tenths percent (29.3%) in Rhode

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Island in 2009.

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     (10) There is an alarming racial disparity in marijuana arrests in Rhode Island, with

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African Americans arrested at nearly three and one half (3½) times the rate of whites in 2009,

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although their marijuana usage rates were very similar.

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     (11) Removing state criminal penalties for persons aged twenty-one (21) and older who

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use or cultivate small amounts of marijuana, and from regulated providers, would allow police to

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spend more time preventing and investigating serious crimes like murder, rape, assault, robbery,

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burglary, and driving under the influence of alcohol and other drugs and would create substantial

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savings.

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     (12) States are not required to enforce federal law or to prosecute people for engaging in

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activities prohibited by federal law, and may choose whether or not to impose state criminal

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penalties on conduct.

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     21-28.6.1-3. Definitions. -- For purposes of this chapter:

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     (1) "Department" means the state of Rhode Island department of business regulation.

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     (2) "Marijuana" means all parts of the plant cannabis sativa L., whether growing or not;

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the seeds thereof; the resin extracted from any part of the plant; and every compound,

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manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. It does not

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include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the

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seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of

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the mature stalks (except the resin extracted from it), fiber, oil, or cake, or the sterilized seed of

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the plant that is incapable of germination.

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     (3) "Marijuana paraphernalia" means equipment, products, and materials which are used

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or intended for use in planting, propagating, cultivating, growing, harvesting, manufacturing,

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compounding, converting, producing, processing, preparing, testing, analyzing, packaging,

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repackaging, storing, containing, concealing, ingesting, inhaling, or otherwise introducing

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marijuana into the human body.

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     (4) "Public place" means any street, alley, park, sidewalk, public building other than

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individual dwellings, or any place of business or assembly open to or frequented by the public,

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and any other place to which the public has access.

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     (5) "Retailer" means an entity that is either:

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     (i) Registered pursuant to sections 21-28.6.2 and 44-49-17 of the general laws, to be

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exempt from state penalties for purchasing marijuana from a wholesaler and selling marijuana

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and marijuana paraphernalia to customers who are twenty-one (21) years of age or older; or

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     (ii) Exempt from state penalties under Rhode Island general laws 21-28.6.2-2 due to the

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department not issuing registrations.

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     (6) "Safety compliance facility" means an entity that is either:

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     (i) Registered pursuant to chapter 21-28.6.2 and Rhode Island general laws section 44-49-

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17, inclusive, of this chapter to be exempt from state penalties for providing one or both of the

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following services: training, including that related to cultivation of marijuana, safe handling of

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marijuana, and security and inventory procedures; or testing marijuana for potency and

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contaminants; or

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     (ii) Exempt from state penalties under Rhode Island general laws section 21-28.6.2-3 due

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to the department not issuing registrations.

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     (7) "Smoking" means heating to at least the point of combustion, causing plant material

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to burn. It does not include vaporizing, which means heating below the point of combustion and

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resulting in a vapor or mist.

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     (8) "State prosecution" means prosecution initiated or maintained by the state of Rhode

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Island or an agency or political subdivision of the state of Rhode Island.

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     (9) "Wholesaler" means an entity that is either:

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     (i) Registered pursuant to sections 21-28.6.2 and 44-49-17 of the general laws, to be

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exempt from state penalties for cultivating, preparing, packaging, and selling marijuana to a

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retailer or another wholesaler, but not selling marijuana to the general public; or

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     (ii) Exempt from state penalties under Rhode Island general laws section 21-28.6.2-3 due

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to the department not issuing registrations.

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     21-28.6.1-4. Exempt activities. -- Except as otherwise provided in this chapter:

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     (1) A person who is twenty-one (21) years of age or older is exempt from arrest, civil or

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criminal penalty, seizure or forfeiture of assets, discipline by any state or local licensing board,

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and state prosecution for the following acts:

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     (i) Actually and constructively using, obtaining, purchasing, transporting, or possessing

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one ounce (1 oz.) or less of marijuana. As used herein, "one ounce (1 oz.) or less of marijuana"

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includes one ounce (1 oz.) or less of marijuana, or any mixture or preparation thereof, including,

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but not limited to, five (5) grams or less of hashish, sixteen ounces (16 oz.) of marijuana-infused

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product in solid form, or seventy-two ounces (72 oz.) of marijuana-infused product in liquid

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form.

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     (ii) Controlling any premises or vehicle where up to one ounce (1 oz.) or less of

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marijuana per person who is twenty-one (21) years of age or older is possessed, processed, or

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stored;

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     (iii) Using, obtaining, purchasing, transporting, or possessing, actually or constructively,

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marijuana paraphernalia;

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     (iv) Selling marijuana seeds to a wholesaler;

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     (v) Manufacturing, possessing, or producing marijuana paraphernalia;

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     (vi) Selling marijuana paraphernalia to retailers, wholesalers, or persons who are twenty-

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one (21) years of age or older;

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     (vii) Transferring one ounce (1 oz.) or less of marijuana to a person who is twenty-one

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(21) years of age or older without remuneration;

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     (viii) Aiding and abetting another person who is twenty-one (21) years of age or older in

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the possession or use of one ounce (1 oz.) or less of marijuana;

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     (ix) Aiding and abetting another person who is twenty-one (21) years of age or older in

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the possession or use of marijuana paraphernalia;

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     (x) Cultivating, possessing, growing, processing, or transporting no more than six (6)

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marijuana plants, with three (3) or fewer being mature, flowering plants.

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     (xi) Controlling any premises where other persons twenty-one (21) years of age or older

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cultivate marijuana plants, with the total number of mature, flowering plants not exceeding

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eighteen (18) in any dwelling unit;

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     (xii) Assisting with the cultivation of marijuana plants that are cultivated at the same

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location for persons twenty-one (21) years of age or older, with the total number of mature,

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flowering plants not exceeding eighteen (18) in any dwelling unit; and

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     (xiii) Any combination of the acts described within paragraphs (i) to (xii), inclusive.

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     (2) A retailer or any person who is twenty-one (21) years of age or older and acting in his

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or her capacity as an owner, employee, or agent of a retailer who acts in compliance with the

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provisions of this chapter is exempt from arrest, civil or criminal penalty, seizure or forfeiture of

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assets, discipline by any state or local licensing board, and state prosecution for the following

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acts:

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     (i) Transporting or possessing, actually or constructively, marijuana, including seedlings

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or cuttings that was purchased from a wholesaler or a retailer;

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     (ii) Obtaining or purchasing marijuana from a wholesaler or a retailer;

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     (iii) Selling or transferring marijuana to another retailer;

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     (iv) Manufacturing, possessing, producing, obtaining, or purchasing marijuana

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paraphernalia;

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     (v) Selling, transferring, or delivering marijuana, including seedlings or cuttings, which

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originate from a wholesaler or retailer, or marijuana paraphernalia to any person who is twenty-

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one (21) years of age or older;

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     (vi) Aiding and abetting any person who is twenty-one (21) years of age or older in the

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possession or use of one ounce (1 oz.) or less of marijuana and three (3) or fewer marijuana

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seedlings or cuttings;

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     (vii) Aiding and abetting any person who is twenty-one (21) years of age or older in the

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possession or use of marijuana paraphernalia;

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     (viii) Controlling any premises or vehicle where marijuana and marijuana paraphernalia

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is possessed, sold, or deposited in a manner that is not in conflict with this chapter or department

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regulations; and

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     (ix) Any combination of the acts described within paragraphs (i) to (viii), inclusive.

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     (3) A wholesaler or any person who is twenty-one (21) years of age or older and acting in

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his or her capacity as an owner, employee, or agent of a wholesaler who acts in compliance with

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the provisions of this chapter is exempt from arrest, civil or criminal penalty, seizure or forfeiture

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of assets, discipline by any state or local licensing board, and state prosecution for the following

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acts:

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     (i) Cultivating, packing, processing, transporting, or manufacturing marijuana;

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     (ii) Producing marijuana-infused products, including tinctures, oils, and edible or potable

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goods;

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     (iii) Transporting or possessing marijuana that was produced by the wholesaler or another

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wholesaler;

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     (iv) Transporting or possessing marijuana seeds;

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     (v) Possessing, transporting, selling, or producing marijuana paraphernalia;

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     (vi) Selling marijuana to a retailer or a wholesaler;

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     (vii) Purchasing marijuana from a wholesaler;

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     (viii) Purchasing marijuana seeds from a person who is twenty-one (21) years of age or

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older;

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     (ix) Controlling any premises or vehicle where marijuana and marijuana paraphernalia is

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possessed, manufactured, sold, or deposited in a manner that is not in conflict with this chapter or

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department regulations; and

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     (x) Any combination of the acts described within paragraphs (i) to (ix), inclusive.

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     (4) A safety compliance facility or any person who is twenty-one (21) years of age or

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older and acting in his or her capacity as an owner, employee, or agent of a safety compliance

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facility who acts in compliance with the provisions of this chapter shall not be subject to state

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prosecution; search, except by the department pursuant to Rhode Island general laws section 21-

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28.6.2-17; seizure; or penalty in any manner or be denied any right or privilege, including, but not

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limited to, civil penalty or disciplinary action by a court or business licensing board or entity,

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solely for acting in accordance with this chapter and department regulations to provide the

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following services:

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     (i) Acquiring or possessing marijuana obtained from wholesalers, retailers, or, if the

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quantity is no more than one ounce (1 oz.) per person, individuals twenty-one (21) years of age or

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older;

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     (ii) Transporting or possessing marijuana obtained from wholesalers, retailers, or, if the

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quantity is no more than one ounce (1 oz.) per person, individuals twenty-one (21) years of age or

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older;

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     (iii) Returning marijuana to wholesalers, retailers, or, if the quantity is no more than one

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ounce (1 oz.) per person, individuals twenty-one (21) years of age or older;

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     (iv) Receiving compensation for analytical testing, including for contaminants or

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potency; and

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     (v) Any combination of the acts described within paragraphs (i) through (iv), inclusive.

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     (5) The acts listed in subdivisions (1) through (4), when undertaken in compliance with

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the provisions of this chapter, are lawful under Rhode Island law.

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     (6) Except as otherwise provided in subdivision (7), in a prosecution for selling,

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transferring, delivering, giving, or otherwise furnishing marijuana or marijuana paraphernalia to

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any person who is under twenty-one (21) years of age, it is a complete defense if:

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     (i) The person who sold, gave, or otherwise furnished marijuana or marijuana

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paraphernalia to a person who is under twenty-one (21) years of age was a retailer or was acting

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in his or her capacity as an owner, employee, or agent of a retailer at the time the marijuana or

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marijuana paraphernalia was sold, given, or otherwise furnished to the person; and

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     (ii) Before selling, giving, or otherwise furnishing marijuana or marijuana paraphernalia

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to a person who is under twenty-one (21) years of age, the person who sold, gave, or otherwise

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furnished the marijuana or marijuana paraphernalia, or a staffer or agent of the retailer, was

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shown a document which appeared to be issued by an agency of a federal, state, tribal, or foreign

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sovereign government and which indicated that the person to whom the marijuana or marijuana

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paraphernalia was sold, given, or otherwise furnished was twenty-one (21) years of age or older

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at the time the marijuana or marijuana paraphernalia was sold, given, or otherwise furnished to

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the person.

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     (7) The complete defense set forth in subdivision (6) does not apply if:

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     (i) The document which was shown to the person who sold, gave, or otherwise furnished

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the marijuana or marijuana paraphernalia was counterfeit, forged, altered, or issued to a person

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other than the person to whom the marijuana or marijuana paraphernalia was sold, given, or

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otherwise furnished; and

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     (ii) Under the circumstances, a reasonable person would have known or suspected that

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the document was counterfeit, forged, altered, or issued to a person other than the person to

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whom the marijuana or marijuana paraphernalia was sold, given, or otherwise furnished.

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     21-28.6.1-5. Authorized activities. -- (a) Any person who is twenty-one (21) years of

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age or older is authorized to manufacture, produce, use, obtain, purchase, transport, or possess,

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actually or constructively, marijuana paraphernalia.

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     (b) Any person who is twenty-one (21) years of age or older is authorized to distribute or

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sell marijuana paraphernalia to retailers, wholesalers, or persons who are twenty-one (21) years of

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age or older.

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     21-28.6.1-6. Civil violation. -- The manufacture or cultivation of six (6) or fewer

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marijuana plants by any person who is twenty-one (21) years of age or older in a location that is

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contrary to this subsection is a misdemeanor punishable by a fine of up to one thousand dollars

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($1,000), up to ten (10) days in jail, or both.

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     (1) Cultivation shall not occur in a location where the marijuana plants are subject to

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public view without the use of binoculars, aircraft, or other optical aids.

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     (2) Marijuana that is cultivated outdoors must be cultivated in an enclosed, locked,

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location, such as a locked fenced-in area.

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     (3) Cultivation may only occur on property lawfully in possession of the cultivator or

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with the consent of the person in lawful possession of the real property.

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     (4) If one or more persons under twenty-one (21) years of age live in or are guests at the

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property where marijuana is cultivated, reasonable precautions must be taken to prevent their

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access to marijuana plants. For purposes of illustration and not limitation, cultivating marijuana in

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a locked closet, room, or fully enclosed area to which the person or persons under twenty-one

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(21) years of age do not possess a key, constitutes reasonable precautions.

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     21-28.6.1-7. Activities not exempt. -- (a) The provisions of this chapter do not exempt

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any person from arrest, civil or criminal penalty, seizure or forfeiture of assets, discipline by any

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state or local licensing board, and state prosecution for, nor may he or she establish an affirmative

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defense based on this chapter to charges arising from, any of the following acts:

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     (1) Driving, operating, or being in actual physical control of a vehicle or a vessel under

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power or sail while impaired by marijuana; or

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     (2) Possessing marijuana if the person is a prisoner; or

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     (3) Possessing marijuana in any local detention facility, county jail, state prison,

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reformatory, or other correctional facility, including, without limitation, any facility for the

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detention of juvenile offenders.

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     21-28.6.1-8. Smoking marijuana shall be prohibited in all public places. -- (a) A

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person who smokes marijuana in such an indoor public place shall be guilty of a petty

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misdemeanor, and may be punished as follows:

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     (1) By a fine of not more than two hundred fifty dollars ($250), imprisonment for a term

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not exceeding ten (10) days, or both for the first violation;

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     (2) By a fine of not more than five hundred dollars ($500), imprisonment for a term not

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exceeding thirty (30) days, or both, for the second or subsequent violation.

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     (b) A person who smokes marijuana in an outdoor public place shall be liable for a civil

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penalty of one hundred fifty dollars ($150).

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     (c) Municipalities may impose additional fines equivalent to state fines for the

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consumption of alcohol in an outdoor public place.

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     21-28.6.1-9. Places of employment. -- The provisions of this chapter do not require

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employers to accommodate the use or possession of marijuana, or being under the influence of

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marijuana, in a place of employment.

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     21-28.6.1-10. Rental premises. -- The provisions of this chapter do not prevent a

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landlord from prohibiting the cultivation of marijuana on the rental premises.

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     21-28.6.1-11. Hotels and motels. -- A landlord or innkeeper may prohibit the smoking of

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marijuana on the rented property or rooms if the landlord or innkeeper posts a notice.

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     21-28.6.1-12. False age representation. -- Any person who falsely represents himself or

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herself to be twenty-one (21) years of age or older in order to obtain any marijuana or marijuana

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paraphernalia pursuant to this chapter is guilty of a misdemeanor.

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     21-28.6.1-13. Expungement. -- This chapter shall, by operation of law, expunge the

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conviction of anyone previously convicted of possession of one ounce (1 oz.) or less of marijuana

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or possession of marijuana paraphernalia, provided that person was twenty-one (21) years of age

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or older at the time of conviction.

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     21-28.6.1-14. Medical use. -- Nothing contained herein shall be construed to repeal or

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modify any law concerning the medical use of marijuana or tetrahydrocannabinol in other forms,

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such as Marinol.

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     CHAPTER 28.6.2

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TAXATION AND REGULATION OF MARIJUANA

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     21-28.6.2-1. Definitions. -- As used in this chapter:

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     (1) "Marijuana" means all parts of the plant cannabis sativa L., whether growing or not;

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the seeds thereof; the resin extracted from any part of the plant; and every compound,

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manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. It does not

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include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the

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seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of

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the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of

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the plant that is incapable of germination.

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     (2) "Retailer" means an entity that is either:

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     (i) Registered pursuant to sections 21-28.6.2 and 44-49-17 of the general laws, to be

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exempt from state penalties for purchasing marijuana from a wholesaler and selling marijuana

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and marijuana paraphernalia to customers who are twenty-one years (21) years of age or older; or

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     (ii) Exempt from state penalties under Rhode Island general laws section 21-28.6.2-2 due

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to the department not issuing registrations.

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     (3) "Safety compliance facility" means an entity that is either:

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     (i) Registered pursuant to sections 21-28.6.2 and 44-49-17 of the general laws, to be

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exempt from state penalties for providing one or both of the following services:

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     (A) Training, including that related to cultivation of marijuana, safe handling of

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marijuana, and security and inventory procedures; or

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     (B) Testing marijuana for potency and contaminants; or

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     (ii) Exempt from state penalties under Rhode Island general laws section 21-28.6.2-4 due

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to the department not issuing registrations.

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     (4) "Wholesaler" means an entity that is either:

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     (i) Registered pursuant to sections 21-28.6.2 and 44-49-17 of the general laws, to be

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exempt from state penalties for cultivating, preparing, packaging, and selling marijuana to a

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retailer or another wholesaler, but not selling marijuana to the general public; or

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     (ii) Exempt from state penalties under Rhode Island general laws section 21-28.6.2-3 due

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to the department not issuing registrations.

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     21-28.6.2-2. Retailer registration. -- Except as otherwise provided in Rhode Island

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general laws section 21-28.6.2-5 of this chapter:

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     (1) A person or an entity may apply, in accordance with the provisions of this chapter and

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the regulations adopted pursuant thereto, for the issuance of a registration exempting the entity

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from state prosecution and penalties for operating as a retailer pursuant to the provisions of this

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chapter.

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     (2) Each applicant for a retailer registration shall submit application materials required by

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the department and a non-refundable fee in an amount determined by the department, not to

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exceed five thousand dollars ($5,000).

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     (3) By one year after the effective date of this chapter, the department shall have issued at

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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

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have been met.

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      (f) For purposes of computing its net income under this section, a corporation shall add

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back otherwise deductible interest expenses and costs and intangible expenses and costs directly

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or indirectly paid, accrued or incurred to, or in connection directly or indirectly with one or more

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direct or indirect transactions with, one or more related members.

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      (1) The adjustments required in subsection (f) of this section shall not apply if the

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corporation establishes by clear and convincing evidence that the adjustments are unreasonable,

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as determined by the tax administrator or the corporation and the tax administrator agree in

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writing to the application or use of an alternative method of apportionment under section 44-11-

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15. Nothing in this subsection shall be construed to the limit or negate the tax administrator's

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authority to otherwise enter into agreements and compromises otherwise allowed by law.

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      (2) The adjustments required in subsection (f) of this section shall not apply to such

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portion of interest expenses and costs and intangible expenses and costs that the corporation can

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establish by the preponderance of the evidence meets both of the following: (A) the related

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member during the same income year directly or indirectly paid, accrued or incurred such portion

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to a person who is not a related member; and (B) the transaction giving rise to the interest

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expenses and costs or the intangible expenses and costs between the corporation and the related

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member did not have as a significant purpose the avoidance of any portion of the tax due under

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chapter 44-11.

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      (3) The adjustments required in subsection (f) shall not apply if the corporation

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establishes by clear and convincing evidence, as determined by the tax administrator, that: (i) a

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principal purpose of the transaction giving rise to the payment of interest was not to avoid

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payment of taxes due under this chapter; (ii) the interest is paid pursuant to a contract that reflects

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an arm's length rate of interest and terms; and (iii) (A) the related member was subject to tax on

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its net income in this state or another state or possession of the United States or a foreign nation;

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(B) a measure of said tax included the interest received from the taxpayer; and (C) the effective

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rate of tax applied to the interest received by the related member is no less than the effective rate

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of tax applied to the taxpayer under this chapter minus 3 percentage points.

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      (4) Partial Adjustments. - The add back required in subsection (f) shall not be required in

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part if a portion of the add back would be unreasonable. A portion of the add back will be

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considered unreasonable to the extent that the taxpayer establishes to the tax administrator by

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clear and convincing evidence that interest or intangible expense was paid, accrued or incurred to

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a related member that is taxed on the corresponding income by a state, U.S. possession or foreign

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jurisdiction. An adjustment to the add back will be allowed based on a factor determined by the

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apportioned tax rate of the related member in the other jurisdiction compared to the apportioned

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tax rate of the taxpayer in this state. A taxpayer that seeks to claim this adjustment must file a

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schedule that sets forth the information required by the tax administrator.

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      (g) Nothing in this section shall require a corporation to add to its net income more than

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once any amount of interest expenses and costs or intangible expenses and costs that the

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corporation pays, accrues or incurs to a related member described in subsection (b) of this

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section.

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      (h) Any taxpayer required to make an adjustment required in subsection (f) for tax years

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beginning on or after January 1, 2008, is additionally required to report to the tax administrator,

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on forms required by him, the amount of any adjustments that would have been required if the

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law applied to tax years beginning on or after January 1, 2007.

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      (i) Nothing in this section shall be construed to limit or negate the tax administrator

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authority to make adjustments under section 44-11-15.

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     (j) Notwithstanding any federal tax law to the contrary, in computing net income for

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businesses exempted from criminal penalties under section 21-28.6.1-4 or section 21-28.6-12 of

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the Rhode Island general laws there shall be allowed as a deduction from state taxes all the

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ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade

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or business, including, but not limited to, reasonable allowance for salaries or other compensation

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for personal services actually rendered.

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     SECTION 6. Chapter 44-49 of the General Laws entitled "Taxation of Marijuana and

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Controlled Substances" is hereby amended by adding thereto the following section:

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     44-49-17. No tax stamp required. -- Controlled substance tax payment with a stamp or

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other official indicia, as referred to in section 44-49-5, is not required for registered retailers and

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wholesalers under chapters 21-28.6.1 and 21-28.6.2 and the penalties provided for in this chapter

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do not apply to those acting in accordance with the laws of, and regulations enacted through the

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authority of, said chapters of the general laws.

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     SECTION 7. This act shall take effect on April 1, 2013.

     

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LC00647

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO FOOD AND DRUGS -- TAXATION AND REGULATION OF MARIJUANA

***

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     This act would create the "Marijuana Regulation, Control and Taxation Act" which

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would legalize the possession of less than one ounce (1 oz.) or less of marijuana, marijuana

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paraphernalia, and a limited amount of marijuana plants. The act would create a regulatory

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process for the manufacture, sale and taxation of marijuana.

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     This act would take effect on April 1, 2013.

     

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LC00647

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H5274