The bill amends the Rhode Island Cannabis Act to make several changes regarding applications for licensure, the social equity assistance program, and the allocation of cannabis tax revenue. Key provisions include the introduction of new definitions, such as "adult use cannabis," "cannabis establishment," and "social equity applicant," which clarify the criteria for social equity applicants, particularly focusing on ownership by individuals disproportionately impacted by past cannabis laws.

The bill specifies that individuals with prior cannabis-related convictions will not be automatically disqualified from obtaining a license, unless those convictions are related to distribution to minors or are substantially related to the occupation for which the license is sought. It also establishes a dedicated social equity assistance fund and a disproportionately impacted areas investment fund, both of which will be used to support individuals and communities adversely affected by cannabis law enforcement.

Regarding the allocation of cannabis tax revenue, the bill mandates that fifty percent (50%) of the revenue collected from the state cannabis excise tax will be deposited into the marijuana trust fund, with one hundred percent (100%) of the revenue from the sales tax going into the general fund. Additionally, the other fifty percent (50%) of the cannabis excise tax revenue will be divided, with seventy-five percent (75%) allocated to the social equity assistance fund and twenty-five percent (25%) to the disproportionately impacted areas investment fund for the first five years. After this period, the distribution will shift to an equal split of fifty percent (50%) for each fund in perpetuity.

The amendments aim to create a more equitable framework for cannabis business operations while ensuring ongoing support for social equity initiatives. The provisions of the bill will take effect upon passage.

Statutes affected:
531: 44-70-5