2021 -- S 0568 SUBSTITUTE A
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LC002305/SUB A/3
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S TATE OF RHODE IS L A N D
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2021
____________
A N A CT
RELATING TO FOOD AND DRUGS -- CANNABIS AUTHORIZATION, REGULATION
AND TAXATION
Introduced By: Senators Miller, McCaffrey, Goodwin, Ruggerio, Coyne, Felag, Euer,
Sosnowski, Pearson, and Acosta
Date Introduced: March 09, 2021
Referred To: Senate Judiciary
It is enacted by the General Assembly as follows:
1 SECTION 1. Title 21 of the General Laws entitled "FOOD AND DRUGS" is hereby
2 amended by adding thereto the following chapter:
3 CHAPTER 28.11
4 THE CANNABIS AUTHORIZATION, REGULATION AND TAXATION ACT
5 21-28.11-1. Short title.
6 This chapter shall be known and may be cited as the "Cannabis Authorization, Regulation
7 and Taxation Act".
8 21-28.11-2. Legislative intent.
9 It is the intent of the general assembly in enacting this chapter to do the following:
10 (1) To regulate cannabis in order to more effectively limit minors' access to cannabis.
11 (2) To reduce criminal activity and violence associated with illegal cannabis cultivation,
12 smuggling and sale.
13 (3) To provide for public health and safety.
14 (4) To raise funds to address and discourage substance abuse, to encourage social justice
15 and support drug education and awareness.
16 21-28.11-3. Definitions.
17 For purposes of this chapter, the following words, terms and phrases shall have the
18 following meanings:
1 (1) ''Cannabinoid'' means any of several compounds produced by cannabis plants that have
2 medical and psychotropic effects.
3 (2) ''Cannabinoid profile" means amounts, expressed as the dry-weight percentages, of
4 delta-nine-tetrahydrocannabinol, cannabidiol, tetrehydrocannabinolic acid and cannabidiolic acid
5 in a cannabis product. Amounts of other cannabinoids may be required by the commission.
6 (3) "Cannabis" or "Marijuana" has the same meaning as "Cannabis" as set forth in § 21-
7 28.6-3.
8 (4) ''Cannabis concentrate'' means the resin extracted from any part of the plant of the genus
9 cannabis and every compound, manufacture, salt, derivative, mixture or preparation of that resin
10 but shall not include the weight of any other ingredient combined with cannabis to prepare cannabis
11 products.
12 (5) ''Close associate'' means a person who holds a legally recognized financial interest in,
13 or is entitled to exercise power in, the business of an applicant or licensee and, by virtue of that
14 interest or power, is able to exercise a significant influence over the management or operation of a
15 cannabis establishment licensed under this chapter.
16 (6) ''Consumer'' means a person who is at least twenty-one (21) years of age.
17 (7) ''Controlling person'' means an officer, board member or other individual who has a
18 financial or voting interest of ten percent (10%) or greater in a cannabis establishment.
19 (8) ''Commission'' means the Rhode Island cannabis control commission established by §
20 21-28.11-4.
21 (9) "Craft cannabis cultivation" means a resident of the state licensed pursuant to the
22 provisions of § 21-28.11-5 to cultivate a limited quantity of cannabis as established by the
23 commission for sale to a licensed establishment or entity, but not to consumers.
24 (10) ''Craft cannabis cultivator cooperative'' means a cannabis cultivator comprised of more
25 than one resident of the state organized as a limited liability company or limited liability partnership
26 under the laws of the state, or an appropriate business structure as determined by the commission,
27 and that is licensed to cultivate, obtain, manufacture, process, package and brand cannabis and
28 cannabis products in limited quantities as established by the commission pursuant to § 21-28.11-5
29 and authorized to sell and deliver cannabis to a licensed cannabis establishment or entity but not to
30 consumers.
31 (11) ''Cultivation batch'' means a collection of cannabis plants from the same seed or plant
32 stock that are cultivated and harvested together, and receive an identical propagation and cultivation
33 treatment, including, but not limited to: growing media, ambient conditions, watering and light
34 regimes and agricultural or hydroponic inputs. The cannabis cultivator licensee shall assign and
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1 record a unique, sequential alphanumeric identifier to each cultivation batch for the purposes of
2 production tracking, product labeling and product recalls.
3 (12) ''Finished cannabis'' means a usable cannabis, cannabis resin or cannabis concentrate.
4 (13) ''Hemp'' means the plant of the genus cannabis or any part of the plant, whether
5 growing or not, with a delta-9-tetrahydrocannabinol concentration that does not exceed three tenths
6 of one percent (0.3%) on a dry weight basis of any part of the plant of the genus cannabis, or per
7 volume or weight of cannabis product, or the combined per cent of delta-9-tetrahydrocannabinol
8 and tetrahydrocannabinolic acid in any part of the plant of the genus cannabis regardless of moisture
9 content.
10 (14) ''Host community'' means a municipality in which a cannabis establishment or a
11 medical cannabis treatment center is located or in which an applicant has proposed locating a
12 cannabis establishment or a medical cannabis treatment center.
13 (15) ''Independent testing laboratory'' means a laboratory that is licensed by the commission
14 and is:
15 (i) Accredited to the most current International Organization for Standardization 17025 by
16 a third-party accrediting body that is a signatory to the International Laboratory Accreditation
17 Cooperation mutual recognition arrangement or that is otherwise approved by the commission;
18 (ii) Independent financially from any medical cannabis treatment center or any licensee or
19 cannabis establishment for which it conducts a test; and
20 (iii) Qualified to test cannabis in compliance with regulations promulgated by the
21 commission pursuant to this chapter. The term includes, but is not limited to, an independent testing
22 laboratory as provided in § 21-28.11-11.
23 (16) ''Laboratory agent'' means an employee of an independent testing laboratory who
24 transports, possesses or tests cannabis.
25 (17) ''Licensee'' means a person or entity licensed by the commission pursuant to the
26 provisions of this chapter. Any business structure recognized under title 7 of the general laws,
27 including but not limited to corporations, partnerships, limited partnerships, limited-liability
28 companies, and workers' cooperatives, which is otherwise qualified, is eligible to be considered by
29 the commission as an entity licensee.
30 (18) ''Manufacture'' means to compound, blend, extract, infuse or otherwise make or
31 prepare a cannabis product.
32 (19) ''Marijuana'' or ''Marihuana'' or "Cannabis" means all parts of any plant of the genus
33 cannabis, not excepted below and whether growing or not; the seeds thereof; and resin extracted
34 from any part of the plant; and every compound, manufacture, salt, derivative, mixture or
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1 preparation of the plant, its seeds or resin including tetrahydrocannabinol; provided, however, that
2 ''cannabis'' shall not include:
3 (i) The mature stalks of the plant, fiber produced from the stalks, oil, or cake made from
4 the seeds of the plant, any other compound, manufacture, salt, derivative, mixture or preparation of
5 the mature stalks, fiber, oil or cake made from the seeds of the plant or the sterilized seed of the
6 plant that is incapable of germination;
7 (ii) Hemp; or
8 (iii) The weight of any other ingredient combined with cannabis to prepare topical or oral
9 administrations, food, drink or other products.
10 (20) ''Marijuana accessories'' or "cannabis accessories" means equipment, products,
11 devices or materials of any kind that are intended or designed for use in planting, propagating,
12 cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing,
13 preparing, testing, analyzing, packaging, repackaging, storing, containing, ingesting, inhaling or
14 otherwise introducing cannabis into the human body.
15 (21) ''Marijuana cultivator'' or "cannabis cultivator" means an entity licensed to cultivate,
16 process and package cannabis, to deliver cannabis to cannabis establishments and to transfer
17 cannabis to other cannabis establishments, but not to consumers.
18 (22) ''Marijuana establishment'' or "cannabis establishment" means a cannabis cultivator,
19 independent testing laboratory, cannabis product manufacturer, cannabis retailer or any other type
20 of licensed cannabis-related business.
21 (23) ''Marijuana product manufacturer'' or "cannabis product manufacturer" means an
22 entity licensed to obtain, manufacture, process and package cannabis and cannabis products, to
23 deliver cannabis and cannabis products to cannabis establishments and to transfer cannabis and
24 cannabis products to other cannabis establishments, but not to consumers.
25 (24) ''Marijuana products'' or "cannabis products" means products that have been
26 manufactured and contain cannabis or an extract from cannabis, including concentrated forms of
27 cannabis and products composed of cannabis and other ingredients that are intended for use or
28 consumption, including edible products, beverages, topical products, ointments, oils and tinctures.
29 (25) ''Marijuana retailer'' or "cannabis retailer" means an entity licensed to purchase and
30 deliver cannabis and cannabis products from cannabis establishments and to deliver, sell or
31 otherwise transfer cannabis and cannabis products to cannabis establishments and to consumers.
32 (26) "Medical marijuana treatment center" or "Medical cannabis treatment center" includes
33 a compassion center, a medical marijuana emporium, or marijuana establishment licensee who
34 operates a treatment center, all as defined in § 21-28.6-3.
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1 (27) ''Mycotoxin'' means a secondary metabolite of a microfungus that is capable of causing
2 death or illness in humans and other animals. For the purposes of this chapter, mycotoxin shall
3 include alfatoxin B1, alfatoxin B2, alfatoxin G1, alfatoxin G2 and ochratoxin A.
4 (28) ''Process'' or ''processing'' means to harvest, dry, cure, trim and separate parts of the
5 cannabis plant by manual or mechanical means, except it shall not include manufacture as defined
6 in this section.
7 (29) ''Production batch'' means a batch of finished plant material, cannabis resin, cannabis
8 concentrate or cannabis-infused product made at the same time, using the same methods, equipment
9 and ingredients. The licensee shall assign and record a unique, sequential alphanumeric identifier
10 to each production batch for the purposes of production tracking, product labeling and product
11 recalls. All production batches shall be traceable to one or more cannabis cultivation batches.
12 (30) ''Residual solvent'' means a volatile organic chemical used in the manufacture of a
13 cannabis product and that is not completely removed by practical manufacturing techniques.
14 (31) ''Terpenoid'' means an isoprene that are the aromatic compounds found in cannabis,
15 including, but not limited to: limonene, myrcene, pinene, linalool, eucalyptol, Δ-terpinene, ß-
16 caryophyllene, caryophyllene oxide, nerolidol and phytol.
17 (32) ''Unreasonable and impracticable'' means that the measures necessary to comply with
18 the regulations, ordinances or by-laws adopted pursuant to this chapter subject licensees to
19 unreasonable risk or require such a high investment of risk, money, time or any other resource or
20 asset that a reasonably prudent businessperson would not operate a cannabis establishment.
21 21-28.11-4. Establishment of commission.
22 (a) There is hereby established a cannabis control commission which shall consist of five
23 (5) commissioners appointed by the governor with the advice and consent of the senate as follows:
24 one of whom shall be nominated by the governor in consultation with the director of the department
25 of health and shall have a background in public health, mental health, substance use or toxicology;
26 one of whom shall be nominated by the governor in consultation with the attorney general and shall
27 have a background in public safety; one of whom shall be nominated by the governor in
28 consultation with the general treasurer and shall have experience in corporate management, finance
29 or securities; and two (2) of whom shall be nominated by the governor, of whom one shall have
30 professional experience in oversight or industry management, including commodities, production
31 or distribution in a regulated industry, and the other one of whom shall have a background in legal,
32 policy or social justice issues related to a regulated industry. The members of the commission shall
33 select and designate the chair of the commission. The chair shall serve in that capacity throughout
34 the term of his or her initial appointment and until a successor shall be appointed. Prior to
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1 appointment to the commission, a background investigation shall be conducted into the financial
2 stability, integrity and responsibility of a candidate, including the candidate's reputation for good
3 character, and honesty.
4 (b) Each commissioner shall be a resident of the state within ninety (90) days of
5 appointment, and while serving on the commission, shall not:
6 (1) Hold, or be a candidate for, federal, state or local elected office;
7 (2) Hold an appointed office in a federal, state or local government; or
8 (3) Serve as an official in a political party. Not more than three (3) commissioners shall be
9 from the same political party.
10 (c) Each commissioner shall serve for a term of five (5) years or until a successor is
11 appointed, and shall be eligible for reappointment; provided, however, that no commissioner shall
12 serve more than ten (10) years, and selection and designation of a chairperson shall occur at least
13 every five (5) years. A person appointed to fill a vacancy in the office of a commissioner shall be
14 appointed in a like manner and shall serve for only the unexpired term of that commissioner.
15 (d) A commissioner may be removed with or without cause pursuant to the provisions of §
16 36-1-7. The governor shall remove a commissioner with advice and consent of the senate if the
17 commissioner:
18 (1) Is guilty of malfeasance in office;
19 (2) Substantially neglects the duties of a commissioner;
20 (3) Is unable to discharge the powers and duties of the office;
21 (4) Commits gross misconduct; or
22 (5) Is convicted of a felony.
23 (e) Commissioners shall receive salaries as determined by the governor in consultation with
24 the speaker of the house and the president of the senate. Commissioners shall devote their full time
25 and attention to the duties of their office.
26 (f) The commission shall annually elect one of its members to serve as secretary and one
27 of its members to serve as treasurer. The secretary shall keep a record of the proceedings of the
28 commission and shall be the custodian and keeper of the records of all books, documents and papers
29 filed by the commission and of its minute book. The secretary shall cause copies to be made of all
30 minutes and other records and documents of the commission and shall certify that such copies are
31 true copies and all persons dealing with the commission may rely upon such certification. These
32 records shall also be subject to the provisions of title 38, "public records." The chair shall have and
33 exercise supervision and control over all the affairs of the commission. The chair shall preside at
34 all hearings at which the chair is present and shall designate a commissioner to act as chair in the
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1 chair's absence. To promote efficiency in administration, the chair shall make such division or re-
2 division of the work of the commission among the commissioners as the chair deems expedient.
3 (g) The commissioners shall, if so directed by the chair, participate in the hearing and
4 decision of any matter before the commission; provided, however, that at least two (2)
5 commissioners shall participate in the hearing and decision of matters other than those of formal or
6 administrative character coming before the commission; and provided further, that any such matter
7 may be heard, examined and investigated by an employee of the commission designated and
8 assigned by the chair, with the concurrence of one other commissioner. For all formal matters, a
9 majority of the commissioners is required to hear and approve all formal matters. Such employee
10 shall make a report in writing relative to the hearing, examination and investigation of every such
11 matter to the commission for its