The bill amends the Rhode Island Cannabis Act to enhance the regulatory framework surrounding cannabis use and licensing, with a strong emphasis on social equity. Key insertions include a comprehensive list of definitions related to cannabis, such as "adult use cannabis," "cannabis establishment," and "social equity applicant." It mandates that all cannabis license applicants undergo a national criminal background check and disclose any prior convictions, ensuring that individuals are not automatically disqualified for past cannabis possession offenses unless they involve distribution to minors or are substantially related to the occupation.

The bill establishes criteria for identifying "disproportionately impacted areas," which will assist in evaluating social equity applicants based on factors like poverty rates and historical arrest rates for cannabis offenses. It introduces significant changes to the licensing process for individuals with prior cannabis-related convictions, stipulating that no license can be suspended or revoked solely due to a past cannabis offense unless it is substantially related to the occupation. It allows individuals to demonstrate rehabilitation for convictions older than five years and prohibits the use of certain criminal records in licensing decisions.

Additionally, the bill creates a social equity assistance program and fund to support initiatives in adversely affected communities, directing a significant portion of cannabis excise tax revenue to these efforts. A dedicated social equity assistance fund and a disproportionately impacted areas investment fund will be established, with both funds receiving revenue from cannabis licensing and a portion of the state cannabis excise tax. For the first five years, 75% of the cannabis excise tax will go to the social equity assistance fund, with the remaining 25% allocated to the disproportionately impacted areas investment fund. After those initial five years, the allocation will transition to an equal split of 50% for each fund. The act is set to take effect immediately upon passage.

Statutes affected:
531: 44-70-5