2022 -- H 7593 SUBSTITUTE A

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LC003594/SUB A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2022

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A N   A C T

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

     Introduced By: Representatives Slater, Hull, Williams, Kazarian, Solomon, McNamara,
O'Brien, Potter, Bennett, and Morales

     Date Introduced: March 01, 2022

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

amended by adding thereto the following chapter:

CHAPTER 28.11

THE RHODE ISLAND CANNABIS ACT

     21-28.11-1. Short title.

     This chapter shall be known and may be cited as "The Rhode Island Cannabis Act".

     21-28.11-2. Organizational structure.

     (a) The regulation, licensing, and enforcement requirements pertaining to regulated

cannabis establishments shall be conducted pursuant to the provisions of this chapter by virtue of

an independent three (3) member commission which shall exercise all powers necessary for the

implementation, administration and enforcement of cannabis regulation and policy for both medical

and adult use cannabis.

     (b) The commission shall work in conjunction with the cannabis advisory board which

shall provide advice, recommendations and proposals to the commission relative to the equitable

administration and regulation of cannabis, including the distribution of funds from the social equity

assistance fund pursuant to the provisions of this chapter.

     (c) Additionally, pursuant to the provisions of this chapter following the final issuance of

the commission's rules and regulations, there shall be established the "cannabis office" which shall

provide administrative and other support to the commission subject to this chapter and the rules

and regulations promulgated by the commission pursuant hereto.

     21-28.11-3. Definitions.

     For purposes of this chapter, the following words, terms and phrases shall have the

following meanings:

     (1) "Administrator" means the administrator of the cannabis office appointed by the

governor pursuant to the provisions of § 21-28.11-18.1.

     (2) "Adult use cannabis" or "recreational cannabis" means cannabis which may be legally

possessed and consumed for non-medical purposes by a person who is at least twenty-one (21)

years of age.

     (3) "Applicant" means a Rhode Island resident or a business entity with a principal place

of business located in Rhode Island to include, but not limited to, a corporation, limited liability

company, limited liability partnership or partnership, and in which fifty-one percent (51%) of the

equity in the business entity is owned by residents of Rhode Island, and the Rhode Island resident

or business entity has made application for issuance of a license or certificate to own or engage in

a cannabis business subject to the provisions of this chapter.

     (4) ''Cannabinoid'' means any of several compounds produced by cannabis plants that have

medical and psychotropic effects.

     (5) ''Cannabinoid profile" means amounts, expressed as the dry-weight percentages, of

delta-9-tetrahydrocannabinol, cannabidiol, tetrahydrocannabinolic acid and cannabidiolic acid in a

cannabis product. Amounts of other cannabinoids may be regulated by the commission.

     (6) "Cannabis" or "marijuana'' or ''marihuana'' means all parts of any plant of the genus

cannabis not excepted herein, and whether growing or not; the seeds thereof; and resin extracted

from any part of the plant; and every compound, manufacture, salt, derivative, mixture or

preparation of the plant, its seeds or resin including tetrahydrocannabinol; provided, however, that

''cannabis'' shall not include:

     (i) The mature stalks of the plant, fiber produced from the stalks, oil, or cake made from

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

the mature stalks, fiber, oil or cake made from the seeds of the plant or the sterilized seed of the

plant that is incapable of germination;

     (ii) Hemp; or

     (iii) The weight of any other ingredient combined with cannabis to prepare topical or oral

administrations, food, drink or other products.

     (7) "Cannabis accessories" or ''marijuana accessories'' means equipment, products, devices

or materials of any kind that are intended or designed for use in planting, propagating, cultivating,

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growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing,

testing, analyzing, packaging, repackaging, storing, containing, ingesting, inhaling or otherwise

introducing cannabis into the human body.

     (8) "Cannabis advisory board" or "advisory board" means the cannabis advisory board

established pursuant to the provisions of § 21-28.11-6.

     (9) ''Cannabis concentrate'' means the resin extracted from any part of the plant of the genus

cannabis and every compound, manufacture, salt, derivative, mixture or preparation of that resin

but shall not include the weight of any other ingredient combined with cannabis to prepare cannabis

products.

     (10) ''Cannabis control commission'' or "commission" means the Rhode Island cannabis

control commission established by § 21-28.11-4.

     (11) "Cannabis cultivator" or ''marijuana cultivator'' means an entity licensed to cultivate,

process and package cannabis, to deliver cannabis to cannabis establishments and to transfer

cannabis to other cannabis establishments, but not to consumers.

     (12) "Cannabis establishment" or ''marijuana establishment'' means a cannabis cultivator,

cannabis testing laboratory, cannabis product manufacturer, cannabis retailer, hybrid cannabis

retailer or any other type of licensed cannabis-related business.

     (13) "Cannabis office" means the office established pursuant to § 21-28.11-18.1.

     (14) "Cannabis product manufacturer" or ''marijuana product manufacturer'' means an

entity licensed to obtain, manufacture, process and package cannabis and cannabis products, to

deliver cannabis and cannabis products to cannabis establishments and to transfer cannabis and

cannabis products to other cannabis establishments, but not to consumers.

     (15) "Cannabis products" or ''marijuana products'' means products that have been

manufactured and contain cannabis or an extract from cannabis, including concentrated forms of

cannabis and products composed of cannabis and other ingredients that are intended for use or

consumption, including edible products, beverages, topical products, ointments, oils and tinctures.

     (16) "Cannabis retailer" or ''marijuana retailer'' means an entity licensed pursuant to § 21-

28.11-10.2 to purchase and deliver cannabis and cannabis products from cannabis establishments

and to deliver, sell or otherwise transfer cannabis and cannabis products to cannabis establishments

and to consumers.

     (17) "Cannabis testing laboratory'' means a third-party analytical testing laboratory that is

licensed annually by the commission, in consultation with the department of health, to collect and

test samples of cannabis and cannabis products pursuant to regulations issued by the commission

and is:

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     (i) Independent financially from any medical cannabis treatment center or any licensee or

cannabis establishment for which it conducts a test; and

     (ii) Qualified to test cannabis in compliance with regulations promulgated by the

commission pursuant to this chapter. The term includes, but is not limited to, a cannabis testing

laboratory as provided in § 21-28.11-11.

     (18) "Chairperson" means the chairperson of the cannabis control commission established

pursuant to § 21-28.11-4.

     (19) ''Close associate'' means a person who holds a legally recognized financial interest in,

or is entitled to exercise power in, the business of an applicant or licensee and, by virtue of that

interest or power, is able to exercise a significant influence over the management or operation of a

cannabis establishment licensed under this chapter.

     (20) ''Consumer'' means a person who is at least twenty-one (21) years of age, and who is

authorized by law to consume or use cannabis.

     (21) ''Controlling person'' means an officer, board member or other individual who has a

financial or voting interest of ten percent (10%) or greater in a cannabis establishment.

     (22) ''Cultivation batch'' means a collection of cannabis plants from the same seed or plant

stock that are cultivated and harvested together, and receive an identical propagation and cultivation

treatment, including, but not limited to: growing media, ambient conditions, watering and light

regimes and agricultural or hydroponic inputs. Every cannabis cultivator licensee shall assign and

record a unique, sequential alphanumeric identifier to each cultivation batch for the purposes of

production tracking, product labeling and product recalls.

     (23) "Disproportionately impacted area" means a census tract or comparable geographic

area that satisfies at least one of the following criteria as determined by the commission, that:

     (i) The area has a poverty rate of at least twenty percent (20%) according to the latest

federal decennial census;

     (ii) Seventy-five percent (75%) or more of the children in the area participate in the federal

free lunch program according to reported statistics from the Rhode Island board of education;

     (iii) At least twenty percent (20%) of the households in the area receive assistance under

the Supplemental Nutrition Assistance Program (SNAP);

     (iv) The area has an average unemployment rate, as determined by the Rhode Island

department of labor and training, that is more than one hundred twenty percent (120%) of the

national unemployment average, as determined by the United States Department of Labor, for a

period of at least two (2) consecutive calendar years preceding the date of the application; or

     (v)(A) The area has a disproportionately high rates of arrest, conviction, and incarceration

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related to the sale, possession, use, cultivation, manufacture, or transportation of cannabis in

comparison to other communities and localities in the state; or

     (B) The area has a history of arrests, convictions, and other law enforcement practices in a

certain geographic area, such as, but not limited to, precincts, zip codes, neighborhoods, and

political subdivisions, reflecting a disparate enforcement of cannabis prohibition during a certain

time period, when compared to the remainder of the state.

     (vi) The commission shall, with recommendations from the cannabis advisory board and

the chief equity officer, issue guidelines to determine how to assess which communities have been

disproportionately impacted and how to assess if someone is a member of a community

disproportionately impacted.

     (24) "Final issuance of the commission's rules and regulations" means the rules and

regulations adopted by the commission after compliance with requirements of chapter 35 of title

42 (the "administrative procedures act") and chapter 46 of title 42 (the "open meetings act") and

shall not include any emergency, provisional or interim rules, regulations, requirements, orders,

instructions or procedures.

     (25) ''Finished cannabis'' means a usable cannabis, cannabis resin or cannabis concentrate.

     (26) ''Hemp'' means the plant of the genus cannabis or any part of the plant, whether

growing or not, with a delta-9-tetrahydrocannabinol concentration that does not exceed three tenths

of one percent (0.3%) on a dry weight basis of any part of the plant of the genus cannabis, or per

volume or weight of cannabis product, or the combined per cent of delta-9-tetrahydrocannabinol

and tetrahydrocannabinolic acid in any part of the plant of the genus cannabis regardless of moisture

content.

     (27) ''Host community'' means a municipality in which a cannabis establishment or a

medical cannabis treatment center is located or in which an applicant has proposed locating a

cannabis establishment or a medical cannabis treatment center.

     (28) "Hybrid cannabis retailer" or "hybrid compassion center" means a compassion center

licensed pursuant to chapter 28.6 of title 21 that is in good standing with the department of business

regulation and that has paid the fee pursuant to § 21-28.11-10 and has been authorized to sell non-

medical or adult use cannabis to consumers.

     (29) ''Laboratory agent'' means a registered employee of a cannabis testing laboratory who

transports, possesses or tests cannabis.

     (30) ''Licensee'' means a person or entity licensed by the commission pursuant to the

provisions of this chapter. Any business structure recognized under title 7 of the general laws,

including, but not limited to, corporations, partnerships, limited partnerships, limited-liability

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companies, and workers' cooperatives, which is otherwise qualified, is eligible to be considered by

the commission as an entity licensee.

     (31) ''Manufacture'' means to compound, blend, extract, infuse or otherwise make or

prepare a cannabis product.

     (32) "Medical cannabis" means cannabis and cannabis products that satisfy the

requirements of chapter 28.6 of title 21 and have been given the designation of "medical cannabis"

or "medical marijuana" due to dose, potency and form. Medical cannabis products are only

available for use by patient cardholders, and may only be sold to or possessed by patient

cardholders, or their registered caregiver, or authorized purchaser in accordance with chapter 28.6

of title 21. Medical cannabis may not be sold to, possessed by, manufactured by, or used by any

person except as permitted pursuant to chapter 28.6 of title 21.

     (33) "Medical cannabis treatment center" or "Medical marijuana treatment center" includes

a compassion center, a medical marijuana emporium, or marijuana establishment licensee who

operates a treatment center, as defined in § 21-28.6-3.

     (34) "Member of an impacted family" means an individual who has a parent, legal

guardian, child, spouse, or dependent, or was a dependent of an individual who, prior to the

effective date of this chapter, was arrested for, charged with, convicted of, or adjudicated delinquent

for any offense that is eligible for expungement under this chapter.

     (35) "Ownership and control" means ownership of at least fifty-one percent (51%) of the

cannabis establishment, and control over the management and day-to-day operations of the

cannabis establishment, and an interest in the capital, assets, and profits and losses of the cannabis

establishment proportionate to percentage of ownership.

     (36) ''Process'' or ''processing'' means to harvest, dry, cure, trim and separate parts of the

cannabis plant by manual or mechanical means, except it shall not include manufacture as defined

in this section.

     (37) ''Production batch'' means a batch of finished plant material, cannabis resin, cannabis

concentrate or cannabis-infused product made at the same time, using the same methods, equipment

and ingredients. The commission shall require licensees to assign and record a unique, sequential

alphanumeric identifier to each production batch for the purposes of production tracking, product

labeling and product recalls. All production batches shall be traceable to one or more cannabis

cultivation batches.

     (38) "Social equity applicant" means an applicant that has been disproportionately

impacted by criminal enforcement of marijuana laws, including individuals convicted of nonviolent

marijuana offenses, immediate family members of individuals convicted of nonviolent marijuana

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offenses and individuals who have resided in disproportionately impacted areas for at least five (5)

of the last ten (10) years, as determined by the commission after consultation with the cannabis

advisory board, and further specified in the rules and regulations that shall identify factors and other

considerations to be evaluated in certifying applicants as social equity applicants, provided that

such applicants shall at a minimum meet one of the following criteria:

     (i) An applicant with at least fifty-one percent (51%) ownership and control by one or more

individuals who have resided for at least five (5) of the preceding ten (10) years in a

disproportionately impacted area.

     (ii) An applicant with at least fifty-one percent (51%) ownership and control by one or

more individuals who:

     (A) Have been arrested for, convicted of, or adjudicated delinquent for any offense that is

eligible for expungement under this chapter; or

     (B) Is a member of an impacted family.

     (iii) For applicants with a minimum of ten (10) full-time employees, an applicant with at

least fifty-one percent (51%) of current employees who:

     (A) Currently reside in a disproportionately impacted area; or

     (B) Have been arrested for, convicted of, or adjudicated delinquent for any offense that is

eligible for expungement under this chapter or is a member of an impacted family.

     (iv) Can demonstrate significant past experience in or business practices that promote

economic empowerment in disproportionally impacted areas.

     (v) Had income which does not exceed four hundred percent (400%) of the median income,

as defined by the commission, in a disproportionally impacted area for at least five (5) of the past

ten (10) years.

     (39) ''Residual solvent'' means a volatile organic chemical used in the manufacture of a

cannabis product and that is not completely removed by practical manufacturing techniques.

     (40) ''Terpenoid'' means an isoprene that are the aromatic compounds found in cannabis,

including, but not limited to: limonene, myrcene, pinene, linalool, eucalyptol, Δ-terpinene, ß-

caryophyllene, caryophyllene oxide, nerolidol and phytol.

     (41) ''Unreasonable and impracticable'' means that the measures necessary to comply with

the rules and regulations adopted pursuant to this chapter subject licensees to unreasonable risk or

require such a high investment of money, time or any other resource or asset that a reasonably

prudent businessperson would not operate a cannabis establishment.

     (42) "Workers' cooperative" means an applicant organized and operated pursuant to the

provisions of chapter 6.2 of title 7.

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     21-28.11-4. Cannabis control commission.

     (a) Establishment of commission. There is hereby established an independent commission

known as the Rhode Island Cannabis Control Commission (commission). The purpose of the

commission is to oversee the regulation, licensing and control of adult use and medical cannabis

and upon transfer of powers pursuant to the provisions of § 21-28.11-10.1, to exercise primary

responsibility to oversee the regulation, licensing and control of all cannabis and marijuana use to

include medical marijuana.

     (b) Appointment of commissioners. The Rhode Island Cannabis Control Commission shall

consist of three (3) voting commissioners as follows:

     (1) The governor shall appoint, with the advice and consent of the senate, the three (3)

voting members of the commission. The speaker of the house shall, within thirty (30) days of the

effective date of this chapter, submit to the governor a list of three (3) individuals that the governor

shall give due consideration in appointing one individual from this list. The governor shall appoint

the other two (2) commissioners without regard to the list submitted by the speaker of the house.

The governor shall designate one of the members to serve as chairperson of the commission. Within

forty (40) days of the effective date of this chapter, the governor shall submit to the senate for

advice and consent the list of three (3) individuals for appointment to the commission along with

the governor's designation of chairperson.

     (2) Prior to appointment to the commission, a background investigation shall be conducted

into the financial stability, integrity and responsibility of each appointee, including the appointee's

reputation for good character, and honesty. No commissioner or commissioner's spouse, or child

shall have any interest whatsoever in any entity regulated by the commission.

     (c) Commissioner requirements. Each commissioner shall be a resident of the state within

ninety (90) days of appointment, and while serving on the commission, shall not:

     (1) Hold, or be a candidate for, federal, state or local elected office;

     (2) Hold an appointed office or other employment in a federal, state or local government;

or

     (3) Serve as an official in a political party.

     (d) Term Limits. Term limits on the initial commissioners shall be as follows: The

appointee chosen after consideration of the list provided to the governor by the speaker of the house

shall serve an initial term of three (3) years and shall be eligible for reappointment in accordance

with this section. Of the appointees chosen by the governor without regard to the list submitted by

the speaker of the house, one shall serve an initial term of two (2) years, and one shall serve an

initial term of one year and both shall be eligible for reappointment in accordance with this section.

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     (1) Each initial commissioner is eligible for reappointment for one six (6) year term or until

a successor is appointed. Each subsequent commissioner shall serve for a term of six (6) years or

until a successor is appointed. Every person appointed or reappointed to fill a vacancy on the

cannabis control commission shall be appointed in the manner established pursuant to this section.

     (2) If a vacancy is created prior to the expiration of any commissioner's term, said vacancy

shall be filled in the manner established pursuant to this section. Any person appointed to fill said

vacancy shall complete the commissioner's unexpired term and shall then be eligible for

reappointment for one additional term pursuant to this section.

     (e) Compensation. The chairperson of the commission shall devote their full time attention

to the duties of the commission. Upon confirmation, the chairperson shall become a state employee

and shall receive a salary as determined by the governor subject to appropriation by the general

assembly. The remaining commissioners shall not be state employees but shall receive a monthly

stipend as determined by the governor, subject to appropriation by the general assembly, and shall

devote sufficient time and attention to the commission to adequately perform their duties.

     (f) Records. The commission shall keep a record of the proceedings of the commission and

the chair shall be the custodian and keeper of the records of all books, documents and papers filed

by the commission and of its minute book. The chair shall cause copies to be made of all minutes

and other records and documents of the commission and shall certify that such copies are true

copies and all persons dealing with the commission may rely upon such certification. These records

shall also be subject to the provisions of title 38, "public records." The chair shall have and exercise

supervision and control over all the affairs of the commission. The chair shall preside at all hearings

at which the chair is present and shall designate a commissioner to act as chair in the chair's absence.

To promote efficiency in administration, the chair shall make such division or re-division of the

work of the commission among the commissioners, as the chair deems expedient.

     (g) Conduct of hearings. The commissioners shall, if so directed by the chair, participate

in the hearing and decision of any matter before the commission.

     (1) For purposes of this section "formal matter", as so designated by the chair, shall include

all non-procedural matters to include, but not limited to, hearings subject to the provisions of

chapter 35 of title 42 (the "administrative procedures act") and all decisions relative to the awarding

of a license or to the denial or revocation of licenses. A majority of the commissioners is required

to hear and approve all formal matters.

     (2) For purposes of this section, "procedural matters", as so designated by the chair, include

scheduling, inclusion of agenda items, administrative compliance decisions, ministerial matters,

routine clerical functions, and any other act delegated by the commission to be performed by an

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employee of the commission or the cannabis office. Any procedural or administrative matter may

be heard, examined and investigated by a single commissioner or an employee of the commission

or the cannabis office as designated and assigned by the chair, with the concurrence of one other

commissioner. If designated by the commission or the cannabis office, the designated employee

shall make a report in writing relative to the hearing, examination and investigation of every

procedural or administrative matter. For the purposes of hearing, examining and investigating any

procedural or administrative matter, the designated employee shall have all of the powers conferred

upon a commissioner by this section. Any procedural or administrative decision made by a single

commissioner or designated employee may be appealed within ten (10) days of issuance of the

decision for a hearing before the full commission.

     (h) Ethics. The provisions of chapter 14 of title 36, the state code of ethics, shall apply to

the commissioners and to employees operating under the jurisdiction of the commission to include,

but not limited to, personnel of the cannabis office; provided, however, that the commission may

promulgate an internal code of ethics for all members and employees that may be more restrictive

than the provisions of chapter 14 of title 36. A copy of any internal code of ethics adopted or as

amended shall be filed with the state ethics commission. The internal code may include provisions

reasonably necessary to carry out the purposes of this chapter.

     (i) Public body. The cannabis control commission shall be a public body for the purposes

of chapter 46 of title 42 (the "open meetings act").

     (j) Finance. The commission shall, for the purposes of compliance with state finance law,

and subject to appropriation by the general assembly, operate as an independent state agency and

shall be subject to the laws applicable to agencies under the control of the governor; provided,

however, that the chairperson may identify any additional instructions or actions necessary for the

department of administration to manage fiscal operations in the state accounting system and meet

statewide and other governmental accounting and audit standards. The commission shall properly

classify the commission's operating and capital expenditures, and shall not include any salaries of

employees in the commission's capital expenditures. Unless otherwise exempted by law, the

commission shall participate in any other available state administrative services including, but not

limited to, the state payroll system, the state retirement system, and state purchases.

     (k) Prohibition on discrimination. The commission and all personnel and employees

operating under the jurisdiction of the commission to include, but not limited to, personnel of the

cannabis office, shall not unlawfully discriminate by considering race, color, religion, sex, sexual

orientation, gender identity or expression, age, national origin, or disability in granting, denying,

or revoking a license, nor shall any person, corporation, or business firm which is licensed pursuant

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to the provisions of this chapter unlawfully discriminate against or segregate any person based on

these grounds. All businesses licensed by the commission shall operate on a nondiscriminatory

basis, according to equal employment treatment and access to their services to all persons, unless

otherwise exempted by the laws of the state. Any licensee who fails to comply with this policy is

subject to any disciplinary action that is consistent with the legal authority and rules and regulations

of the commission. The commission shall cooperate with the state equal opportunity office to

prevent any person, corporation, or business firm from unlawfully discriminating because of race,

color, religion, sex, sexual orientation, gender identity or expression, age, national origin, or

disability or from participating in any practice which may have a disparate effect on any protected

class within the population. The state equal opportunity office shall monitor the equal employment

opportunity activities and affirmative action plans of the commission.

     21-28.11-5. Powers and duties of the commission.

     (a) Subject to the state code of ethics and any internal ethics code adopted by the

commission, the commission shall have all the powers necessary and reasonable to carry out and

effectuate its purposes, including, but not limited to, the power to:

     (1) Adopt, amend or repeal rules and regulations for the implementation, administration

and enforcement of this chapter;

     (2) Determine which applicants shall be awarded licenses;

     (3) Deny an application or limit, condition, restrict, revoke or suspend any license;

     (4) Determine and establish the process and methodology by which licenses shall be

awarded by the commission;

     (5) Require an applicant for licensure under this chapter to apply for such licensure and

approve or disapprove any such application or other transactions, events and processes as provided

in this chapter;

     (6) Establish a registration process;

     (7) Execute all instruments necessary and appropriate, in the commission's discretion, to

fulfill the purposes of this chapter;

     (8) Enter into agreements or other transactions with a person, including, but not limited to,

a public entity or other governmental instrumentality or authority in connection with its powers and

duties under this chapter;

     (9) Appear on its own behalf before boards, commissions, departments or other agencies

of municipal, state or federal government;

     (10) Apply for and accept subventions, grants, loans, advances and contributions of money,

property, labor or other things of value from any source, to be held, used and applied for its purposes

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subject to appropriation by the general assembly;

     (11) Subject to appropriation by the general assembly, provide and pay for advisory

services and technical and other assistance including the hiring of appropriate support staff

personnel as may be necessary in its judgment to carry out the purpose and intent of this chapter,

and subject to applicable law, fix the compensation of persons providing such services or

assistance;

     (12) Prepare, publish and distribute, with or without charge as the commission may

determine, such studies, reports, bulletins and other materials as required by the provisions of this

chapter or other applicable law or as the commission considers appropriate;

     (13) Review data and market conditions on an annual basis to determine and recommend

the maximum number of licenses that shall be issued to meet the production demands to implement

the provisions of this chapter subject to enactment by the general assembly;

     (14) Conduct and administer procedures and hearings in compliance with chapter 35 of

title 42 (the "administrative procedures act") for adoption of rules or regulations, issuance, denial

or revocation of licenses or permits; or for violation of the provisions of this chapter or the rules

and regulations adopted pursuant to the provisions of this chapter;

     (15) Gather facts and information and take action applicable to the commission's

obligations pursuant to this chapter relating to:

     (i) Any violation of this chapter or any rule or regulation adopted by the commission; and

     (ii) Any willful violation of an order of the commission directed to a licensee or a person

required to be registered;

     (iii) The conviction of a criminal offense, for the purpose of determining whether said

conviction substantially relates to the occupation or activity to which the license or registration

applies;

     (iv) Any other action or conduct which would disqualify a licensee from holding a license

pursuant to the provisions of this chapter;

     (16) In connection matters having to do with the discharge of the duties of the commission

pursuant to this chapter, the chairperson of the commission, in cases pending before the

commission, is hereby authorized and empowered to summon witnesses to attend and testify in a

like manner as in either the supreme or superior courts. The commission is authorized to compel

the production of all papers, books, documents, records, certificates, or other legal evidence that

may be necessary for the determination and the decision of any question or the discharge of any

duty required by law of the commission, by issuing a subpoena duces tecum signed by the

chairperson. Any person who shall willfully swear falsely in any proceedings, matter, or hearing

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before the commission shall be subject to the law pertaining to the crime of perjury. Any person

who disobeys may be referred by the chairperson of the commission to the presiding justice of the

superior court for assignment of a hearing on civil contempt citation and/or to the attorney general

for criminal contempt prosecution

     (17) Conduct investigations into the qualifications of all applicants for employment by the

commission, the cannabis office and all applicants for licensure pursuant to the provisions of this

chapter;

     (18) Receive from the state police, the department of attorney general or other criminal

justice agencies, including, but not limited to, the Federal Bureau of Investigation and the Internal

Revenue Service, such criminal record information relating to criminal and background

investigations as necessary for the purpose of evaluating licensees, applicants for licenses, lab

agents, and any other employee or agent of a cannabis establishment, as determined by the

commission or otherwise required by law;

     (19) Be present, through its designated inspectors and agents, at any reasonable time, in

cannabis establishments for the purposes of exercising its powers and duties;

     (20) Inspect cannabis establishments and have access to all equipment and supplies in a

cannabis establishment for the purpose of ensuring and enforcing compliance with this chapter,

chapter 28.6 of title 21, and all rules and regulations promulgated pursuant to this chapter and

chapter 28.6 of title 21;

     (21) In accordance with all applicable law, coordinate with the state police to seize,

impound and remove from the premises of a cannabis establishment any cannabis, equipment,

supplies, documents and records obtained or possessed in violation of this chapter, chapter 28.6 of

title 21, or the rules and regulations of the commission;

     (22) Require that the books and financial or other records or statements of a licensee be

kept in a manner that the commission deems proper;

     (23) For cause, demand access to and inspect all papers, books and records of close

associates of a licensee whom the commission reasonably suspects is involved in the financing,

operation or management of the licensee; provided, however, that the inspection, examination,

photocopying and audit may take place on the affiliate's premises or elsewhere as practicable and

in the presence of the affiliate or its agent;

     (24) Impose and collect fees, sanctions and administrative penalties, as authorized by this

chapter and established by regulation, and for a violation of any rule or regulation promulgated by

the commission except as of December 1, 2022, no fee shall be authorized or imposed for registry

identification cards or for plant tags;

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     (25) Establish adjudicatory procedures and conduct adjudicatory proceedings pursuant to

the provisions of chapter 35 of title 42 (the "administrative procedures act");

     (26) Refer cases for criminal prosecution to the appropriate federal, state or local

authorities;

     (27) Maintain an official Internet website for the commission that, in the discretion of the

commission, may be in coordination with the cannabis office;

     (28) Submit any matter to the advisory board for study, review or recommendation;

     (29) Request and/or approve or disapprove recommendations by the cannabis advisory

board made pursuant to § 21-28.11-6 to include, but not be limited to, distribution of funds from

the social equity assistance fund established pursuant to § 21-28.11-31;

     (30) Monitor any federal activity regarding cannabis;

     (31) Delegate any administrative, procedural or operational matter to the cannabis office;

     (32) Issue temporary emergency orders, directives or instructions, with or without prior

notice or hearing, in an instance in which the public health or safety is in substantial or imminent

danger as it relates to the activities, conduct or practices of a licensee or as a result of a defective

or dangerous product offered for sale by a licensee. If a temporary emergency order, directive or

instruction without notice or a hearing is issued by the commission then the order, directive or

instruction shall expire after ten (10) days unless a hearing is noticed by the commission within the

ten (10) day period, and the hearing is scheduled to be conducted within twenty (20) days of the

issuance of the order, directive or instruction;

     (33) Amend forms, procedures and requirements adopted by the office of cannabis

regulation pursuant to § 21-28.11-10.1 related to the temporary regulation of cultivation,

manufacture and sale of cannabis for adult use by hybrid cannabis retailers during the transitional

period established by § 21-28.11-10.1; and

     (34) Provide recommendations to the general assembly regarding any advisable or

proposed amendments to chapter 26 of title 2 relative to the regulation of industrial hemp and the

use of hemp as a commercial product.

     (b) The commission shall, pursuant to subsection (a) of this section, adopt rules and

regulations consistent with this chapter for the administration, clarification and enforcement of

provisions regulating and licensing cannabis establishments and the sale, possession and use of

cannabis. The rules and regulations shall include, but not be limited to:

     (1) Methods and forms of application which an applicant for a license shall follow and

complete before consideration by the commission;

     (2) Requirements for the information to be furnished by an applicant or licensee;

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     (3) Criteria for evaluation of the application for a license;

     (4) Qualifications for licensure and minimum standards for employment that are directly

and demonstrably related to the operation of a cannabis establishment and similar to qualifications

for licensure and employment standards in connection with the manufacture, distribution or sale of

alcoholic beverages as regulated under title 3 of the general laws; provided, that a criminal

conviction relating solely to the possession of marijuana or cannabis shall not automatically

disqualify an individual from eligibility for employment or licensure in connection with a cannabis

establishment pursuant to § 21-28.11-12.1;

     (5) In consultation with the cannabis advisory board, identification of factors to be

evaluated in the approval and certification of social equity applicants and establishment of

procedures and policies to promote and encourage full participation in the regulated cannabis

industry by people from communities that have previously been disproportionately harmed by

cannabis prohibition and enforcement;

     (6) In accordance with all applicable law, standards for the payment or reporting of

licensure fees and taxes;

     (7) Requirements for the information to be furnished by a licensee to the licensee's

employees;

     (8) Requirements for fingerprinting or other method of identification of an applicant for a

license or a licensee and the employees of licensees;

     (9) Procedures and grounds for the revocation or suspension of a license or registration;

     (10) Minimum uniform standards of accounting procedures;

     (11) Requirements for record keeping by cannabis establishments and procedures to track

cannabis cultivated, processed, manufactured, delivered or sold by cannabis establishments;

     (12) Minimum standards for the requirement that all licensees possess and operate an

interoperable publicly available application programming interface seed-to-sale tracking system

sufficient to ensure the appropriate track and trace of all cannabis cultivated, processed or

manufactured pursuant to this chapter;

     (13) Standards and procedures to leverage seed-to-sale tracking technology which may

allow for the appropriate transfer or acquisition of cannabis seeds, clones, cuttings, plants or plant

tissue between medical and nonmedical establishments;

     (14) Registration requirements for employees of cannabis establishments including

ensuring that employees be properly trained in the performance of their duties as necessary;

     (15) Minimum security requirements for licensees sufficient to deter and prevent theft and

unauthorized entrance into areas containing cannabis, which may include ,but not be limited to, the

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use of security personnel, security cameras, or alarms;

     (16) Minimum standards for liability insurance coverage;

     (17) Requirements and procedures, utilizing best practices, to prevent the sale, delivery or

transfer of cannabis to persons under twenty-one (21) years of age, or the purchase of cannabis on

behalf of a person under twenty-one (21) years of age to include, but not limited to, the

establishment of age verification procedures;

     (18) Health and safety standards, established in consultation with the department of health,

for the cultivation, processing, manufacturing and distribution of cannabis, including standards

regarding sanitation for the preparation, storage, handling and sale of food products, including

compliance with state sanitation requirements, and health inspections; provided, however, that the

authority to promulgate regulations pertaining to the use of pesticides shall remain with the

department of environmental management pursuant to the provisions of chapter 25 of title 23;

     (19) Requirements for the packaging and labeling of cannabis and cannabis products that

shall, at a minimum:

     (i) Require the most current consumer product safety commission standards, set forth in 16

C.F.R. 1700 et seq.; and

     (ii) Protect children from accidently ingesting cannabis or cannabis products, including by

making packaging certified child-resistant and resealable;

     (20) Requirements and restrictions for advertising, marketing and branding of cannabis and

cannabis products;

     (21) Requirements for the safe disposal of excess, contaminated, adulterated or deteriorated

cannabis, which shall consider policies which promote the reasonable remediation and/or recycling

of such waste, including, but not limited to, recycled industrial products;

     (22) Procedures and requirements to enable the transfer of a license for a cannabis

establishment to another qualified person or to another suitable location in compliance with the

provisions of § 21-28.11-10.2 following notification and approval by the commission; provided

however, that a license issued to a social equity applicant shall only be transferred to another

qualified social equity applicant, and a license issued to a workers' cooperative applicant shall only

be transferred to another qualified workers' cooperative applicant;

     (23) Requirements to establish a process allowing the commission to order a prohibition

on the sale of a cannabis product found especially appealing to persons under twenty-one (21) years

of age including a means for allowing a cannabis product manufacturer to voluntarily submit a

product, its packaging and intended marketing to the commission for preliminary determination

whether the product is especially appealing to persons under twenty-one (21) years of age;

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     (24) Requirements that may prohibit cannabis product manufacturers from altering or

utilizing commercially-manufactured food products when manufacturing cannabis products unless

the food product was commercially manufactured specifically for use by the cannabis product

manufacturer to infuse with cannabis;

     (25) Energy and environmental standards for licensure and licensure renewal of cannabis

establishments licensed as a cannabis cultivator or cannabis product manufacturer;

     (26) If determined necessary to protect or promote public health and safety, the commission

may establish reasonable limits for cannabis product potency and/or dosing; provided that, in the

interest of maintaining a stable cannabis market, before imposing such limits, the commission shall

give due consideration to the limits on potency and/or dosing imposed by neighboring states;

     (27) The testing and safety of cannabis and cannabis products, including but not limited to,

regulations promulgated by the commission in consultation with the department of health, as

applicable which:

     (i) License and regulate the operation of cannabis laboratory testing facilities, including

requirements for equipment, training, and qualifications for personnel;

     (ii) Set forth procedures that require random sample testing to ensure quality control,

including, but not limited to, ensuring that cannabis and cannabis products are accurately labeled

for tetrahydrocannabinol (THC) content and any other product profile;

     (iii) Establish testing for residual solvents or toxins; harmful chemicals; dangerous molds

or mildew; filth; and harmful microbials such as E. coli or salmonella and pesticides, and any other

compounds, elements, or contaminants;

     (iv) Require that all cannabis and cannabis products must undergo random sample testing

at a licensed cannabis testing facility or other laboratory equipped to test cannabis and cannabis

products that have been approved by the commission;

     (v) Require any products which fail testing be quarantined and/or recalled and destroyed

in accordance with regulations;

     (vi) Allow for the establishment of other quality assurance mechanisms which may include

but not be limited to, the designation or creation of a reference laboratory, creation of a secret

shopper program, round robin testing , or any other mechanism to ensure the accuracy of product

testing and labeling;

     (vii) Require cannabis establishment licensees and cannabis products to comply with any

applicable food safety requirements determined by the commission and/or the department of health;

     (viii) Include any additional requirements deemed necessary by the commission as

determined in consultation with the department of health; and

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     (ix) Allow the commission, in coordination with the department of health, at their

discretion, to temporarily remove, or phase in, any requirement for laboratory testing if it finds that

there is not sufficient laboratory capacity for the market;

     (28) Standards and restrictions for cannabis manufacturing and processing which shall

include, but not be limited to, requirements that cannabis processors;

     (i) Comply with all applicable building and fire codes;

     (ii) Receive approval from the state fire marshal’s office for all forms of manufacturing

that use a heat source or flammable solvent;

     (iii) Require any cannabis processor that manufactures edibles of cannabis infused food

products to comply with all applicable requirements and regulations and obtain a food business

license as defined by § 21-27-1 issued by the department of health’s office of food safety; and

     (iv) Comply with any other requirements deemed suitable by the commission;

     (29) Standards for manufacturing or extracting cannabinoid oils or butane hash oil;

     (30) General operating requirements, minimum oversight, and any other activities,

functions, or aspects of a cannabis establishment licensee in furtherance of creating a stable,

regulated cannabis industry and mitigating its impact on public health and safety;

     (31) Rules and regulations based on federal law, provided such rules and regulations are

designed to comply with federal guidance and mitigate federal enforcement against the cannabis

establishments and adult use establishments authorized, licensed and operated pursuant to this

chapter;

     (32) Coordinate and implement the transition and transfer of regulatory authority of

medical marijuana from the department of business regulation to the commission; and

     (33) Requirements that, after March 1, 2023, according to a timeline determined by the

commission, patients with out-of-state medical marijuana cards must also possess and produce a

valid government issued identification demonstrating residency in the same state jurisdiction that

issued the medical marijuana card.

     (c) Regulations made pursuant to this section shall not:

     (1) Except to protect public health and safety, prohibit the operation of a cannabis

establishment either expressly or through regulations that make operation of a cannabis

establishment unreasonable and impracticable;

     (2) Require an adult retail purchaser to provide a cannabis retailer with identifying

information other than proper identification to determine the customer's age, and shall not require

the cannabis retailer to acquire or record personal information about customers other than

information typically required in a retail transaction;

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     (3) Except as provided pursuant to chapter 28.6 of title 21, authorize a cannabis retailer,

medical marijuana treatment center or a hybrid cannabis retailer to operate at a shared location with

a cultivator;

     (4) Authorize a cannabis establishment to transfer or acquire cannabis seeds, clones,

cuttings, plants or plant tissue to or from another cannabis establishment unless notice of the

transfer or acquisition is provided to the commission; or

     (5) Prohibit cannabis establishments from using inorganic cultivation methods.

     (d) Reports. In furtherance of the intent of this chapter:

     (1) The commission shall annually submit a complete and detailed report of the

commission's activities, including a review of the implementation and enforcement of this chapter

and the governance structure established in this chapter, not more than ninety (90) days after the

end of the fiscal year to the governor, the attorney general, the treasurer, the speaker of the house,

and the president of the senate.

     (2) The commission shall annually review the tax rates established by this chapter and may

make recommendations to the general assembly, as appropriate, regarding any changes to the tax

rates that further the intent of this chapter.

     (3) Each fiscal year the commission shall submit an annual finance plan to the governor,

the speaker of the house and the president of the senate, and updates to such plan.

     (4) The commission may study cannabis commerce and make recommendations to the

general assembly regarding changes to existing law that further the intent of this chapter by

reporting those recommendations to the governor, the speaker of the house, and the president of

the senate.

     (5) The commission may conduct an analysis and report to the general assembly if it finds

that conditions are appropriate for the issuance of additional types or classes of licenses to operate

cannabis-related businesses, including, but not limited to:

     (i) Licenses that authorize limited or restricted cultivation, processing, manufacture,

possession or storage of cannabis or cannabis products, limited delivery of cannabis or cannabis

products to consumers;

     (ii) Licenses that authorize the consumption of cannabis or cannabis products on the

premises where sold;

     (iii) Licenses that authorize the consumption of cannabis at special events in limited areas

and for a limited time; and

     (iv) Licenses intended to facilitate scientific research or education.

     (e) The commission shall administer and enforce the provisions of this chapter and the rules

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and regulations relating to licensing in this chapter and in its discretion and where appropriate may

delegate and authorize various administration and enforcement powers and duties to the cannabis

office.

     (f) The commission may investigate, in conjunction with the department of health, the

effects of cannabis and cannabis products with a high potency of tetrahydrocannabinol on human

health and consider restrictions on the potency of tetrahydrocannabinol in cannabis and cannabis

products that are necessary for protection of public health or safety in accordance with the

provisions of § 21-28.11-5(b)(26).

     (g) The commission shall be subject to all the provisions of chapter 35 of title 42.

     (h) The commission shall cause to be deposited all fees and monetary penalties collected

pursuant to this chapter in the social equity assistance fund established pursuant to § 21-28.11-31,

excluding medical compassion center license fees pursuant to § 21-28.6-12, tax penalties and any

funds designated to be deposited in the marijuana trust fund pursuant to § 21-28.11-13(d).

     (i) The commission shall work collaboratively with other state agencies and departments

to ensure that the production and distribution of cannabis is effectively regulated in the state in

furtherance of this chapter.

     21-28.11-6. Cannabis advisory board.

     (a) There is hereby established a cannabis advisory board, which is directed to work in

collaboration with the commission and the administrator of the cannabis office to advise and issue

recommendations on the use, commerce, regulation and effects of adult-use and medical cannabis

within the state. The advisory board shall additionally provide recommendations to the commission

regarding the administration and distribution of the social equity assistance fund established

pursuant to § 21-28.11-31.

     (b) Membership. The advisory board shall consist of eleven (11) voting members, and eight

(8) non-voting members.

     (1) The board shall consist of the following non-voting members: the secretary of

commerce or designee, the director of the department of labor and training or designee, the director

of the department of health or designee, the commissioner of education or designee, the

superintendent of public safety or designee, the director of the department of business regulation

or designee, the secretary of the Executive Office of Health and Human Services (EOHHS) or

designee, and a representative from the University of Rhode Island College of Pharmacy selected

by the commission.

     (2) The board shall consist of the following voting members: a social equity officer, who

shall be appointed by the governor and serve as chair of the advisory board; two (2) additional

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members to be appointed by the governor, one of whom shall represent the cannabis laboratory

testing industry, and one of whom shall be appointed in accordance with subsection (e) of this

section; four (4) members to be appointed by the speaker of the house, one of whom shall represent

the cannabis cultivation industry, and three (3) of whom to be appointed in accordance with

subsection (e) of this section; and four (4) members to be appointed by the president of the senate,

one of whom shall represent the cannabis retail industry, and three (3) of whom to be appointed in

accordance with subsection (e) of this section.

     (c) Term of voting members. The voting members shall be appointed to serve three (3) year

terms or until a successor is appointed. In the event of vacancy, the vacancy shall be filled in the

manner of the original appointment for the remainder of the term.

     (d) Compensation. The appointed members and representatives shall receive no

compensation for their services.

     (e) Representation. The members of the advisory board appointed by the governor, the

speaker of the house and the president of the senate pursuant to the provisions of the chapter shall

to the extent possible be individuals with expertise in the following areas: public and behavioral

health, substance use disorder treatment, effective rehabilitative treatment for adults and juveniles,

homelessness and housing, economic development, criminal justice, law enforcement and drug

policy. Further, the advisory board shall include representation from communities most impacted

by cannabis prohibition, such as individuals with prior drug convictions, the formerly incarcerated,

and representatives of organizations servicing communities impacted by past federal and state drug

policies.

     (f) Quorum. To take action at a meeting, a majority of voting members of the board must

be present and voting to constitute a quorum.

     (g) Role and responsibilities. The advisory board shall:

     (1) Consider all matters submitted to the board by the cannabis control commission;

     (2) Advise and make recommendations to the commission on the preparation and

promulgation of guidelines, rules and regulations and any changes to guidelines, rules and

regulations that the advisory board deems fundamental or necessary for the commission's review

and consideration;

     (3) Provide analysis and recommendations to the commission relating to the administration

and distribution of the social equity assistance fund established pursuant to § 21-28.11-31;

     (4) Conduct all meetings in compliance with chapter 46 of title 42 (the "open meetings

act"); and

     (5) Report the findings, analysis, recommendations and conclusions adopted and approved

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by the board to the commission within thirty (30) days of adoption and approval.

     (h) Subcommittees. The chair may appoint subcommittees in order to develop and report

recommendations and to expedite the work of the board; provided, however, that the chair shall

appoint:

     (1) A subcommittee on public health to develop recommendations on: products, labelling,

marketing, advertising, related public health issues; potency, which may include a recommended

maximum limit for individual servings of cannabis products; and packaging, which may include

the development and implementation of a public health warning to appear on cannabis products;

     (2) A subcommittee on public safety and community mitigation to develop

recommendations on law enforcement, property, business, consumer, and any other issues that may

have an affect on the locality of the cannabis establishment and the surrounding environment;

     (3) A subcommittee on the cannabis industry to develop recommendations on cultivation,

processing, manufacturing, transportation, distribution, seed-to-sale tracking systems and market

stability;

     (4) A subcommittee on market participation to develop recommendations on minority and

veteran-owned businesses, local agriculture and growing cooperatives; and

     (5) A subcommittee on social equity to develop recommendations on remedying the harm

to individuals directly and adversely impacted by the past enforcement of cannabis-related laws.

     21-28.11-7. Licensed cannabis cultivators.

     (a) Except as provided pursuant to the provisions of subsection (b) of this section or § 21-

28.11-8, there shall be a moratorium on the issuance of new cannabis cultivator licenses until the

date that is two (2) years following the final issuance of the commission's rules and regulations

pursuant to the provisions of this chapter. This moratorium shall not apply to cannabis cultivators

licensed pursuant to chapter 28.6 of title 21 on or before enactment of this chapter.

     (b) On August 1, 2022 and thereafter, any medical marijuana cultivator licensed or

approved pursuant to the provisions of § 21-28.6-16, upon payment of an additional license fee,

shall be permitted to cultivate, manufacture and process cannabis as a hybrid cannabis cultivator

for both adult use and medical use. The amount of the additional license fee shall be determined by

the office of cannabis regulation during the transitional period established by § 21-28.11-10 and

shall be subject to review by the commission pursuant to the final rules and regulations. The fee

shall be deposited in the social equity fund established in § 21-28.11-31. Sale of the cultivated

cannabis shall be made directly to a licensee pursuant to the provisions of this chapter and chapter

28.6 of title 21, subject to the following conditions:

     (1) The cultivator must be in good standing and maintain the cultivator license pursuant to

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the provisions of chapter 28.6 of title 21; and

     (2) The cultivator must make good faith efforts to ensure the adult use cannabis production

portion of the cultivation operation has no significant adverse effect on the medical marijuana

program and patient needs.

     (c) During the moratorium pursuant to this section, the commission, with the assistance of

the advisory board, as required, shall submit a report to the general assembly which evaluates the

cultivation of adult use and medical cannabis. The report shall consider factors, including, but not

limited to:

     (1) Cultivation and production history;

     (2) Tax payment history;

     (3) Existing inventory and inventory history;

     (4) Sales contracts;

     (5) Current and future projected market conditions; and

     (6) Any other factors relevant to ensuring responsible cultivation, production, and

inventory management for both medical and adult use cannabis.

     (d) Upon expiration of the moratorium pursuant to this section, the commission may adopt

rules and regulations authorizing issuance of additional cultivator licenses; provided, however, a

new cultivator licensee's canopy shall not exceed ten thousand square feet (10,000 ft2). In

determining whether to issue additional cultivator licenses, the cannabis control commission shall

consider the findings of the report submitted pursuant to subsection (c) of this section.

     (e) For the purposes of this section, "canopy" means the total surface area within a

cultivation area that is dedicated to the cultivation of mature cannabis plants. The surface area of

the canopy must be calculated in square feet and measured using the outside boundaries of the area

and must include all of the area within the boundaries. If the surface area of the canopy consists of

noncontiguous areas, each component area must be separated by identifiable boundaries. If a tiered

or shelving system is used in the cultivation area, the surface area of each tier or shelf must be

included in calculating the area of the canopy. The canopy does not include the areas within the

cultivation area that are used to cultivate immature cannabis plants and seedlings and that are not

used at any time to cultivate mature cannabis plants.

     (f) To qualify for issuance of any cannabis cultivator license under subsection (d) of this

section, an applicant shall satisfy all requirements and qualifications established by the commission

to include but not limited to, the following:

     (1) Apply for a license in a manner prescribed by the commission;

     (2) Provide proof that the applicant is twenty-one (21) years of age or older and is a resident

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of the state;

     (3) Undergo a criminal record background check pursuant to § 21-28.11-12.1 and on any

terms established by the commission;

     (4) Provide proof that the applicant is current with and in compliance with all obligations

required by the division of taxation, including filings and payment of taxes;

     (5) Has provided a nonrefundable application fee as determined by the commission; and

     (6) Shall consent and be subject to inspections by the commission for the purposes of

ensuring and enforcing compliance with this chapter and all rules and regulations promulgated

pursuant to this chapter; and

     (7) Prior to the issuance of any license and for any period of renewal, the applicant shall

submit an annual license fee pursuant to subsection (b) of this section to be deposited in the social

equity fund established in § 21-28.11-31.

     (g) The commission may determine and adjust the application fee or annual license fee

pursuant to the commission's rulemaking authority and in accordance with the provisions of chapter

35 of title 42.

     (h) Every individual cannabis plant possessed by a licensed cannabis cultivator shall be

catalogued in a seed-to-sale inventory tracking system. The commission shall review the current

seed-to-sale tracking system utilized pursuant to chapter 28.6 of title 21 and promulgate new or

additional regulations, as it deems appropriate. As of December 1, 2022, any cannabis tags issued

to provide seed-to-sale inventory and tracking, shall be issued without charge to patient cardholders

and/or primary caregivers authorized to grow medical cannabis.

     (i) Notwithstanding any other provisions of the general laws, the manufacture of cannabis

using a solvent extraction process that includes the use of a compressed, flammable gas as a solvent

by a licensed cannabis cultivator shall not be subject to the protections of this chapter.

     (j) Cannabis cultivators shall sell cannabis only to an entity licensed pursuant to the

provisions of this chapter or chapter 28.6 of title 21.

     (k) Cannabis cultivators shall be licensed to grow cannabis only at a location or locations

registered with and approved by the cannabis commission. The commission may promulgate

regulations governing locations where cultivators are authorized to grow. Cannabis cultivators shall

abide by all local ordinances, including zoning ordinances.

     (l) As a condition of licensing, cannabis cultivators shall consent and be subject to

inspection by the commission for the purposes of ensuring and enforcing compliance with this

chapter and chapter 28.6 of title 21, all rules and regulations promulgated pursuant to this chapter,

and the provisions of § 28-5.1-14.

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     (m) Persons issued cultivator licenses shall be subject to the following:

     (1) A licensed cannabis cultivator shall notify and request approval from the commission

of any change in his or her name or address within ten (10) days of the change. A licensed cannabis

cultivator who fails to notify the commission of any of these changes commits shall be subject to

an administrative fine of no more than one hundred fifty dollars ($150), or other penalty as

determined by the commission.

     (2) When a licensed cannabis cultivator notifies the commission of any changes listed in

this subsection, the commission shall issue the licensed cannabis cultivator a new license

identification document after the commission approves the changes and receives from the licensee

payment of a fee specified in regulations.

     (3) If a licensed cannabis cultivator loses his or her license or certification document, he or

she shall notify the commission and submit a fee specified in regulation within ten (10) days of

losing the document. The commission shall issue a new license document with a new random

identification number, upon receipt of payment of a fee promulgated in the rules and regulations

not to exceed the amount of one hundred dollars ($100).

     (4) A licensed cannabis cultivator has a continuing duty to notify the commission of any

criminal conviction(s) that occurs after the issuance of a license or registration. A criminal

conviction may not automatically result in suspension or revocation of a license, but shall be subject

to § 21-28.11-12.1. The commission may suspend and/or revoke his or her license after the

notification, pending a final determination of disqualification pursuant to § 21-28.11-12.1.

     (5) If a licensed cannabis cultivator violates any provision of this chapter or regulations

promulgated hereunder as determined by the commission, his or her issued license may be

suspended and/or revoked.

     (n) Immunity.

     (1) No licensed cannabis cultivator shall be subject to: arrest; prosecution; search or

seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and subsection (f)(6) of

this section; or penalty in any manner, or denied any right or privilege, including, but not limited

to, civil penalty or disciplinary action by a business, occupational, or professional licensing board

or entity, solely for acting in accordance with this chapter, chapter 28.6 of title 21 and rules and

regulations promulgated by the commission.

     (2) No principal officers, board members, agents, volunteers, or employees of a licensed

cannabis cultivator shall be subject to arrest; prosecution; search or seizure, except as authorized

pursuant to §§ 21-28.11-20 and 21-28.11-27 and subsection (f)(6) of this section; or penalty in any

manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary

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action by a business, occupational, or professional licensing board or entity, solely for working for

or with a licensed cannabis cultivator to engage in acts permitted by this chapter, chapter 28.6 of

title 21 and rules and regulations promulgated by the commission.

     (3) No state employee or commission member shall be subject to arrest; prosecution; search

or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27; or penalty in any

manner, or denied any right or privilege, including, but not limited to, civil penalty, disciplinary

action, termination, or loss of employee or pension benefits, for any and all conduct that occurs

within the scope of his or her employment regarding the administration, execution, and/or

enforcement of this chapter, chapter 28.6 of title 21 and rules and regulations promulgated by the

commission, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.

     (o) Nothing in this section shall be construed as authorizing a cannabis cultivator to transfer

or sell cannabis directly to a consumer. A direct sale or transfer from a cannabis cultivator to a

consumer is prohibited and shall be grounds for revocation of license and criminal prosecution.

     (p) A cannabis cultivator and all agents and employees of the cannabis cultivator shall

comply with all rules adopted by the commission and other applicable laws.

     (q) No cannabis or cannabis product shall be sold or otherwise marketed pursuant to this

chapter that has not first been tested by a cannabis testing laboratory and determined to meet the

commission's testing protocols issued pursuant to § 21-28.11-11. Cannabis cultivators shall be

subject to any regulations promulgated by the commission that specify how marijuana shall be

tested, including, but not limited to, potency, cannabinoid profile and contaminants. Cannabis

cultivators shall be subject to any product labeling requirements promulgated by the commission

or otherwise required by law.

     (r) License required. No person or entity shall engage in activities described in this section

without a cultivator license issued pursuant to this chapter.

     21-28.11-8. Moratorium report.

     (a) If the commission determines that the moratorium on issuing cultivator licenses is

preventing an adequate supply of cannabis to fulfill the market demand pursuant to chapters 28.6

and 28.11 of title 21, then the commission shall report the basis of the determination to the speaker

of the house, the president of the senate and the governor.

     (b) No later than May 1, 2024, the commission shall conduct and deliver to the governor,

the speaker of the house and the president of the senate, a study relating to the impact of the

moratorium imposed pursuant to § 21-28.11-7 on the availability of cannabis for medical marijuana

and adult use sales, and the projected need for the issuance of additional cultivator licenses to satisfy

projected market needs.

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     21-28.11-9. Cannabis product manufacturer or wholesaler.

     (a) A cannabis product manufacturer or processor or wholesaler that does not hold a

cannabis cultivator's license shall have a cannabis product manufacturer's license issued by the

commission. A cannabis product manufacturer licensee may purchase cannabis from cultivators for

processing and shall only transfer or sell cannabis products to other entities licensed pursuant to

this chapter or chapter 28.6 of title 21. A cannabis product manufacturer's licensee or processor or

wholesaler shall report to the commission, pursuant to regulations, the purchase or acquisition and

the sale or transfer of all cannabis and cannabis products.

     (b) To qualify and hold a cannabis product manufacturer's license under this section the

applicant shall satisfy all qualifications established by the commission to include, but not be limited

to the following:

     (1) Apply for a license in a manner prescribed by the commission;

     (2) Provide proof that the applicant is twenty-one (21) years of age or older and is a resident

of the state;

     (3) Undergo a criminal record background check pursuant to § 21-28.11-12.1 and on any

terms established by the commission;

     (4) Provide proof that the applicant is current and in compliance with all obligations for

filings and payments for taxes with the division of taxation;

     (5) Has provided a nonrefundable application fee as determined by the commission and

promulgated by rules and regulations; and

     (6) Prior to issuance of any license and for any period of renewal, the applicant shall submit

an annual license fee as determined by the commission and promulgated by rules and regulations

to be deposited in the social equity fund established in § 21-28.1--31.

     (c) A cannabis product manufacturer or processor or wholesaler and all agents and

employees shall comply with all rules adopted by the commission and all applicable laws.

     (d) The commission may adjust the application fee or annual license fee pursuant to the

commission's rulemaking authority and in accordance with the provisions of chapter 35 of title 42.

     (e) As a condition of licensing, cannabis product manufacturers or processors or

wholesalers shall consent and be subject to inspections by the commission for the purposes of

ensuring and enforcing compliance with this chapter and all rules and regulations promulgated

pursuant to this chapter, and pursuant to the provisions of § 21-28.11-20.

     (f) Nothing in this section shall be construed as authorizing a cannabis product

manufacturer or processor or wholesaler to transfer or sell cannabis to a consumer. A direct sale or

transfer from a cannabis product manufacturer licensee to a consumer is prohibited.

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     (g) No cannabis or cannabis product shall be sold or otherwise marketed pursuant to this

chapter that has not first been tested by a cannabis testing laboratory and determined to meet the

commission's testing protocols issued pursuant to § 21-28.11-11.

     (h) Persons issued cannabis product manufacturer's licenses shall be subject to the

following:

     (1) A licensed cannabis product manufacturer shall notify and request approval from the

commission of any change in his or her name or address within ten (10) days of the change. A

licensed cannabis product manufacturer who fails to notify the commission of any of these changes

shall be subject to an administrative fine of no more than one hundred fifty dollars ($150) or other

penalty as determined by the commission.

     (2) When a licensed cannabis product manufacturer notifies the commission of any changes

listed in this subsection, the commission shall issue the licensed cannabis product manufacturer a

new registry identification document after the department approves the changes and receives from

the licensee payment of a fee specified in regulation.

     (3) If a licensed cannabis product manufacturer loses his or her document, he or she shall

notify the commission and submit a fee specified in regulation not to exceed one hundred dollars

($100), within ten (10) days of losing the document. The commission shall issue a new license with

a new random identification number.

     (4) A licensed cannabis product manufacturer has a continuing duty to notify the

commission of any criminal conviction(s) that occurs after the issuance of a license or registration.

A criminal conviction relating solely to a cannabis offense shall not automatically result in

suspension or revocation of a license, but shall be subject to § 21-28.11-12.1.

     (5) If a licensed cannabis product manufacturer violates any provision of this chapter or

regulations promulgated hereunder as determined by the commission, his or her issued license may

be suspended and/or revoked in addition to any other enforcement action.

     (i) Immunity.

     (1) No licensed cannabis product manufacturer or wholesaler shall be subject to: arrest;

prosecution; search or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27

and by subsection (e) of this section; or penalty in any manner, or denied any right or privilege,

including, but not limited to, civil penalty or disciplinary action by a business, occupational, or

professional licensing board or entity, solely for acting in accordance with this chapter, chapter

28.6 of title 21 and rules and regulations promulgated by the commission.

     (2) No principal officers, board members, agents, volunteers, or employees of a licensed

cannabis product manufacturer or wholesaler shall be subject to arrest; prosecution; search or

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seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (e) of

this section; or penalty in any manner, or denied any right or privilege, including, but not limited

to, civil penalty or disciplinary action by a business, occupational, or professional licensing board

or entity, solely for working for or with a licensed cannabis product manufacturer or wholesaler to

engage in acts permitted by this chapter, chapter 28.6 of title 21 or rules and regulations

promulgated by the commission.

     (3) No state employee or commission member shall be subject to arrest; prosecution; search

or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (e)

of this section; or penalty in any manner, or denied any right or privilege, including, but not limited

to, civil penalty, disciplinary action, termination, or loss of employee or pension benefits, for any

and all conduct that occurs within the scope of his or her employment regarding the administration,

execution, and/or enforcement of this chapter, chapter 28.6 of title 21 and rules and regulations

promulgated by the commission, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to

this section.

     21-28.11-10. Hybrid cannabis retailers.

     (a) On or after December 1, 2022, a compassion center licensed pursuant to the provisions

of chapter 28.6 of title 21, upon payment to the office of cannabis regulation of an hybrid cannabis

retailer fee of one hundred twenty-five thousand dollars ($125,000) to be deposited in the social

equity fund, is permitted to sell adult use cannabis pursuant to the provisions of this chapter for a

period of one year, subject to the following conditions:

     (1) The compassion center must be in good standing and maintain its compassion center

license with the office of cannabis regulation pursuant to the provisions of chapter 28.6 of title 21;

     (2) The compassion center shall make good faith efforts to ensure that the sale of cannabis

for adult use as a hybrid cannabis retailer has no significant adverse effect on the medical marijuana

program and patient needs; and

     (3) The compassion center shall post in a conspicuous place a copy of a certificate of

authorization evidencing a license in good standing and payment of the hybrid cannabis retailer

fee.

     (b) During the transitional period specified in § 21-28.11-10.1, hybrid cannabis retailers

shall comply with directives of state agencies, departments and offices exercising regulatory

authority pursuant to § 21-28.11-10.1(b), and directives provided or issued by the commission to

protect public health and public safety. Failure to comply with a rule or directive issued pursuant

to provisions of this subsection and § 21-28.11-10.1(b), may result in a revocation or suspension

of the authorization to conduct adult use cannabis sales as ordered by the commission or office of

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cannabis regulation.

     (c) Following the final issuance of the commission's rules and regulations, hybrid cannabis

retailers shall be subject to the commission's rules and regulations for all sales authorization and

renewals to include, but not limited to, any licensing requirements.

     (d) Notwithstanding any other provision of the general laws, a licensed compassion center

authorized as a hybrid cannabis retailer pursuant to subsection (a) of this section and the rules and

regulations promulgated by the commission shall be exempt from the requirements of chapter 28.6

of title 21 requiring registration as a not-for-profit corporation under chapter 6 of title 7, provided

the compassion center maintains operation as a hybrid cannabis retailer in good standing with the

commission. The commission may promulgate regulations or issue guidance to facilitate the

transition from a not-for-profit corporation to a for-profit corporation or other entity, including, but

not limited to, the requirement that the compassion center must update and/or resubmit licensing

and application documents which reflect this change.

     (e) If the commission has failed to make final issuance of the commission's rules and

regulations after one year from the date the compassion center has paid the fee pursuant to

subsection(a) of this section, then hybrid cannabis retailers shall be permitted to continue to engage

in adult use cannabis sales upon payment of a monthly fee to the department of business regulation

in the amount of ten thousand five hundred dollars ($10,500) for each month of operation following

the one year period provided in subsection (a) of this section. Upon final issuance of the

commission's rules and regulations, hybrid cannabis retailers shall comply with the provisions of

the rules and regulations to maintain licensing and authorization to sell adult use cannabis in

accordance with § 21-28.11-10.2.

     (f) Notwithstanding any other general law, rule or regulation, after March 1, 2023, and in

accordance with a timeline established by the commission, no hybrid cannabis retailer shall be

authorized to sell medical marijuana to any patient with an out-of-state medical marijuana card who

fails to possess and produce a valid government issued identification demonstrating residency in

the same state that issued the medical marijuana card.

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

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

final issuance of the commission's rules and regulations promulgated pursuant to the provisions of

this chapter, there shall exist a transitional period of regulatory and enforcement authority regarding

the production, possession, regulation, distribution, sale and use of cannabis relating to the sale by

hybrid cannabis retailers of adult use cannabis pursuant to § 21-28.11-10.

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

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

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

21.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

following:

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

geographic zone;

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

municipal approval;

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

licensed cannabis retailer; and

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

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

premises.

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

prospective licensee submission of plans to electronically separate finished marijuana products

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

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

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

designation for medical or adult use sales.

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

These shall include prospective licensee submission of comprehensive policies and procedures

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

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

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

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

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

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

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

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

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

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

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

as defined in this section.

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

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

maintain compliance with the existing provisions of chapter 28.6 of title 21 of the general laws and

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

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

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

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

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

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

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

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

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

occur:

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

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

provisions of chapter 28.6 of title 21 shall be transferred to the commission or as designated by the

commission to the cannabis office.

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

with respect to regulation, administration and enforcement of chapter 28.6 of title 21 shall be

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

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

regulation, administration and enforcement of chapter 28.6 of title 21 shall be transferred to the

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

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

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

of the commission.

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

responsibilities authorized pursuant to § 21-28.11-18.1.

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

provisions of § 21-28.11-10.1(a) and (b) relating to transitional period authority shall cease.

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

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

"cannabis office" as defined in this chapter.

     21-28.11-10.2. Cannabis retail sales.

     (a) In addition to the hybrid cannabis retailer certificates that may be issued pursuant to the

provisions of this chapter, after issuance of the final rules and regulations, the commission may

grant twenty-four (24) retail licenses, subject to the following restrictions:

     (1) The retail licenses shall be issued pursuant to geographic zones as specified in § 21-

28.11-10.3.

     (2) No more than four (4) retail licenses exclusive of any hybrid cannabis retail certificate

shall be permitted in each geographic zone; and

     (3) Of the four (4) retail licenses in each geographic zone:

     (i) One shall be reserved for a workers' cooperative applicant; and

     (ii) One shall be reserved for a social equity applicant.

     (b) Minimum qualifications. To qualify for issuance of a cannabis retail sales license under

this section, an applicant shall satisfy all qualifications established by the commission to include,

but not be limited to, the following:

     (1) Apply for a license in a manner prescribed by the commission;

     (2) Provide proof that the applicant is twenty-one (21) years of age or older and is a resident

of the state;

     (3) Undergo a criminal record background check pursuant to § 21-28.11-12.1 and on any

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terms established by the commission;

     (4) Provide proof that the applicant is current and in compliance with all obligations for

filings and payments for taxes with the division of taxation;

     (5) Demonstrate that the proposed location for the retail sale of cannabis complies with

provisions of municipal zoning and regulations or has been approved by the municipality;

     (6) Paid a nonrefundable application fee as determined by the commission and promulgated

by rules and regulations; and

     (7) Prior to issuance of any license and for any period of renewal, the applicant shall pay

an annual fee of thirty thousand dollars ($30,000) to be deposited in the social equity fund

established in § 21-28.11-31.

     (e) Compliance. A cannabis retail sales licensee and all agents and employees shall comply

with all rules adopted by the commission and all applicable laws to include, but not limited to,

chapter 5 of title 28 (the "fair employment practices act").

     (f) Inspection. As a condition of licensing and pursuant to § 21-28.11-20, cannabis retailers

shall consent and be subject to inspections by the commission or designated personnel for the

purposes of ensuring and enforcing compliance with this chapter, all rules and regulations

promulgated pursuant to this chapter and all other applicable law, to include, but not be limited to,

the provisions of title 44 ("taxation"), chapter 28 of title 21 (the "uniform controlled substance act"),

and chapter 5 of title 28 (the "fair employment practices act").

     (g) Testing. No cannabis or cannabis product shall be sold or otherwise marketed pursuant

to this chapter that has not first been collected and tested by a cannabis testing laboratory and found

to meet the testing protocols issued pursuant to regulations promulgated by the department of health

and determined to meet the commission's testing protocols issued pursuant to § 21-28.11-11

     (h) Minimum requirements. Persons issued cannabis retail licenses shall be subject to the

following:

     (1) A licensed cannabis retailer shall notify and request approval from the commission of

any change in his or her name or address within ten (10) days of the change. A licensed cannabis

retailer who fails to notify the commission of any of these changes shall be subject to an

administrative fine of no more than one hundred fifty dollars ($150) or other penalty as determined

by the commission;

     (2) When a licensed cannabis retailer notifies the commission of any changes listed in this

subsection, the commission shall issue the licensed cannabis retailer a new license identification

document after the commission approves the changes and receives from the licensee payment of a

fee specified in regulation;

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     (3) If a licensed cannabis retailer loses his or her license document, he or she shall notify

the commission and submit a fee specified in regulation within ten (10) days of losing the

document. The commission shall issue a new license document with a new random identification

number upon payment of a fee promulgated in the rules and regulations not to exceed one hundred

dollars ($100);

     (4) A licensed cannabis retailer has a continuing duty to notify the commission of any

criminal conviction(s) that occurs after the issuance of a license or registration. A criminal

conviction shall not automatically result in suspension or revocation of a license, but shall be

subject to the provisions § 21-28.11-12.1;

     (5) If a licensed cannabis retailer violates any provision of this chapter or regulations

promulgated hereunder as determined by the commission, his or her issued license may be

suspended and/or revoked.

     (i) Immunity.

     (1) No licensed cannabis retailer shall be subject to: arrest; prosecution; search or seizure,

except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (f) of this

section; or penalty in any manner, or denied any right or privilege, including, but not limited to,

civil penalty or disciplinary action by a business, occupational, or professional licensing board or

entity, solely for acting in accordance with this chapter and rules and regulations promulgated by

the commission.

     (2) No principal officers, board members, agents, volunteers, or employees of a licensed

cannabis retailer shall be subject to arrest; prosecution; search or seizure, except as authorized

pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (f) of this section; or penalty in any

manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary

action by a business, occupational, or professional licensing board or entity, solely for working for

or with a licensed cannabis retailer to engage in acts permitted by this chapter and rules and

regulations promulgated by the commission.

     (3) No state employee or commission member shall be subject to arrest; prosecution; search

or seizure, except as authorized pursuant to §§ 21-28.11-20 and 21-28.11-27 and by subsection (f)

of this section; or penalty in any manner, or denied any right or privilege, including, but not limited

to, civil penalty, disciplinary action, termination, or loss of employee or pension benefits, for any

and all conduct that occurs within the scope of his or her employment regarding the administration,

execution, and/or enforcement of this chapter and rules and regulations promulgated by the

commission, and the provisions of §§ 9-31-8 and 9-31-9 shall be applicable to this section.

     21-28.11-10.3. Geographic zones.

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     For purposes of issuance of cannabis retail licenses by the commission pursuant to the

provisions of this chapter, the following geographic zones are established:

     (1) Zone 1 shall consist of the towns of Burriville, Cumberland, Glocester, North

Smithfield, Smithfield and the city of Woonsocket.

     (2) Zone 2 shall consist of the towns of Johnston, Lincoln and North Providence and the

cities of Central Falls and Providence.

     (3) Zone 3 shall consist of the towns of Coventry, Foster, Scituate, West Greenwich and

West Warwick.

     (4) Zone 4 shall consist of the towns of East Greenwich and North Kingstown and the cities

of Cranston and Warwick.

     (5) Zone 5 shall consist of the towns of Charlestown, Exeter, Hopkinton, Narragansett,

Richmond, South Kingstown and Westerly.

     (6) Zone 6 shall consist of the towns of Barrington, Bristol, Jamestown, Little Compton,

Middletown, New Shoreham, Portsmouth, Tiverton and Warren and the cities of East Providence,

Newport and Pawtucket.

     21-28.11-10.4. Medical marijuana program parity.

     No later than April 1, 2024, the commission shall, in collaboration with the department of

health and the office of management and budget, conduct and deliver to the governor, the speaker

of the house of representatives, and the president of the senate a study relating to the impact of the

implementation of adult use cannabis in Rhode Island on the existing medical marijuana program

(MMP) established pursuant to chapter 28.6 of title 21. This study shall examine and make

recommendations relating to, without limitation, the following:

     (1) The extent to which the introduction of adult use cannabis has diminished or eliminated

the availability of certain medical marijuana products or product types;

     (2) The extent to which patient cardholders in Rhode Island have experienced new or

greater obstacles to obtaining medical marijuana, including on the basis of price, quantity, product

type, or geographic location;

     (3) The extent to which the number of caregiver registrations and/or the number of plant

tag certificates issued by the commission increases or decreases; and

     (4) The extent to which the introduction of the new adult use cannabis tax and license fee

structure requires a realignment of the existing medical marijuana tax and license fee structure.

     21-28.11-11. Cannabis testing laboratories -- Licensure and oversight.

     (a) In consultation with the department of health, the commission shall have authority to

promulgate regulations to create and implement all licenses involving cannabis reference testing

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requirements, including approval of laboratory proficiency programs and proficiency sample

providers, quality assurance sample providers, round robin testing and regulations establishing

quality control and test standardization, and create and implement additional types and classes of

licensed cannabis testing facilities in accordance with regulations promulgated hereunder.

     (b)(1) The regulations promulgated by the commission shall at a minimum provide for the

licensure and oversight of cannabis testing laboratories, and shall establish testing protocols for the

sampling, testing and analysis of cannabis, finished cannabis and cannabis products in consultation

with the department of health. Such regulations shall be based on the most recent standards as

issued by the United States Pharmacopeial Convention and shall address sampling and analysis to

characterize the cannabinoid profile and biological and chemical contaminants, including, but not

limited to, pesticides, herbicides, plant growth regulators, metals, microbiological contaminants,

and residual solvents introduced through cultivation of cannabis plants and post-harvest processing

and handling of cannabis, cannabis products and ingredients.

     (2) No cannabis or cannabis product shall be sold or otherwise marketed pursuant to this

chapter that has not first been tested by a cannabis testing laboratory and determined to meet the

commission's testing protocols issued pursuant to subsection (a) of this section.

     (3) A licensed cannabis testing laboratory shall transport, store, possess, and test cannabis

in compliance with regulations promulgated by the commission. Nothing in this section shall be

construed as authorizing a cannabis testing laboratory to transfer or sell cannabis to a consumer. A

direct sale or transfer from a cannabis testing laboratory licensee to a consumer is prohibited.

     (4) A cannabis testing laboratory shall report any results indicating contamination to the

commission, the department of health and the department of environmental management within

forty-eight (48) hours of identification.

     (5) No laboratory agent or employee of a cannabis testing laboratory shall receive direct or

indirect financial compensation, other than such reasonable contractual fees to conduct such testing,

from any entity for which it is conducting testing pursuant to this chapter.

     (6) No individual who possesses an interest in or is a laboratory agent employed by a

cannabis testing laboratory, and no immediate family member of that individual, shall possess an

interest in or be employed by a cultivator, product manufacturer or retail cannabis establishment.

     (c) To qualify for issuance of a cannabis testing laboratory license under this section, an

applicant shall satisfy all qualifications established by the commission to include, but not be limited

to, the following:

     (1) Apply for a license in a manner prescribed by the commission;

     (2) Provide proof that the applicant is twenty-one (21) years of age or older and is a resident

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of the state;

     (3) Undergo a criminal record background check pursuant to § 21-28.11-12.1 and on any

terms established by the commission;

     (4) Provide proof that the applicant is current and in compliance with all obligations for

filings and payments for taxes with the division of taxation;

     (5) Provide a nonrefundable application fee as determined by the commission and

promulgated by rules and regulations and apply for a testing license from the commission prior to

testing, processing or transporting cannabis; and

     (6) Prior to the issuance of any license and for any period of renewal, the applicant shall

submit an annual license fee as determined by the commission and promulgated by rules and

regulations.

     (d) Cannabis testing laboratories shall be responsible for ensuring the following, as related

to laboratory agents:

     (1) A laboratory agent shall be registered with the commission prior to volunteering or

working at a cannabis testing laboratory;

     (2) A cannabis testing laboratory shall apply to the commission for a registration document

for each affiliated laboratory agent by submitting, at a minimum, the name, address, and date of

birth of the laboratory agent;

     (3) A laboratory agent shall undergo a criminal background check pursuant to § 21-28.11-

12.1 and on terms established by the commission, prior to volunteering or working at a cannabis

testing laboratory. Laboratory agents shall also have a continuing duty to notify the commission of

any criminal conviction(s) that occur after the issuance of a registration document. A criminal

conviction shall not automatically result in suspension or revocation of registration, but shall be

subject to § 21-28.11-12.1; and

     (4) A cannabis testing laboratory shall notify the commission within one business day if a

laboratory agent ceases to be associated with the laboratory, and the laboratory agent's registration

document shall be immediately revoked.

     (e) A cannabis testing laboratory and all agents and employees shall comply with all rules

adopted by the commission and all applicable laws.

     (f) As a condition of licensing and pursuant to the provisions of § 21-28.11-20, cannabis

testing laboratories shall consent and be subject to inspection by the commission or personnel

designated by the commission for the purposes of ensuring and enforcing compliance with this

chapter and all rules and regulations promulgated pursuant to this chapter, to include, but not be

limited to, the provisions of chapter 5 of title 28 (the "fair employment practices act").

LC003594/SUB A - Page 38 of 125

     (g) Persons issued cannabis testing laboratory licenses shall be subject to the following:

     (1) A licensed cannabis testing laboratory shall notify and request approval from the

commission of any change in his or her name or address within ten (10) days of the change. A

licensed cannabis testing laboratory who fails to notify the commission of any of these changes

shall be subject to an administrative fine of no more than one hundred fifty dollars ($150) or other

penalty as determined by the commission.

     (2) When a licensed cannabis testing laboratory notifies the commission of any changes