Bill Sponsors
Hopkins, Casey, J. Brien, Corvese, and Noret
Committee
House Corporations
Summary
Select
This legislation amends the Rhode Island Cannabis Act to impose stricter regulations on the advertising of cannabis and cannabis products. Specifically, it prohibits hybrid cannabis retailers and cultivators from placing advertisements on any medium—including social media, internet search engines, television, radio, newspapers, and billboards—if those advertisements "may be visible to minors." The bill incorporates these restrictions into both the transitional period regulations and the permanent powers and duties of the Cannabis Control Commission, aiming to limit youth exposure to cannabis marketing.
Analysis
Pros for Progressives
- Prioritizes public health and child welfare by restricting corporate marketing tactics that could influence minors to use cannabis products.
- Reduces the intrusion of commercial vice advertising in public spaces and digital platforms, aligning with community wellness goals.
- Empowers regulatory bodies to enforce stricter standards on cannabis businesses, ensuring they operate responsibly within the community.
Cons for Progressives
- The broad restriction on ads "visible to minors" could effectively ban all advertising, disproportionately hurting small, social equity-owned businesses trying to compete with established players.
- May infringe upon commercial free speech rights, setting a precedent that could be used to restrict information about other legal services or advocacy groups.
- Vague definitions regarding visibility to minors could lead to arbitrary enforcement by authorities, potentially targeting specific operators unfairly.
Pros for Conservatives
- Protects children and traditional family values by shielding minors from exposure to drug culture and advertisements in public spaces and media.
- Limits the ability of the cannabis industry to aggressively market mind-altering substances to the general public.
- Empowers state agencies to strictly enforce rules against drug purveyors, ensuring compliance with safety standards.
Cons for Conservatives
- Imposes heavy-handed government regulations on legal businesses, stifling the free market and the ability of owners to promote their products.
- Grants unelected bureaucrats excessive power to interpret vague standards about what is "visible to minors," leading to potential government overreach.
- Restricts commercial free speech, setting a dangerous precedent for government censorship of legal business activities.
Constitutional Concerns
Likely Unconstitutional. The prohibition on advertisements "visible to minors" is overly broad and vague. Since minors are present in most public spaces and online, this could effectively act as a total ban on advertising a legal product. This likely violates First Amendment protections for commercial speech, as seen in Supreme Court precedents like *Lorillard Tobacco Co. v. Reilly*, which struck down similar restrictions for not being narrowly tailored.
Impact Overview
Groups Affected
- Cannabis retailers
- Cannabis cultivators
- Media companies
- Minors
- Parents
Towns Affected
All
Cost to Taxpayers
None
Revenue Generated
None
BillBuddy Impact Ratings
Importance
Measures population affected and overall level of impact.
Freedom Impact
Level of individual freedom impacted by the bill.
Public Services
How much the bill is likely to impact one or more public services.
Regulatory
Estimated regulatory burden imposed on the subject(s) of the bill.
Clarity of Bill Language
How clear the language of the bill is. Higher ambiguity equals a lower score.
Enforcement Provisions
Measures enforcement provisions and penalties for non-compliance (if applicable).
Environmental Impact
Impact the bill will have on the environment, positive or negative.
Privacy Impact
Impact the bill is likely to have on the privacy of individuals.
Bill Status
Current Status
Held
Comm Passed
Floor Passed
Law
History
• 02/27/2026 Introduced, referred to House Corporations
• 03/06/2026 Scheduled for hearing and/or consideration (03/12/2026)
• 03/12/2026 Committee recommended measure be held for further study
• 03/06/2026 Scheduled for hearing and/or consideration (03/12/2026)
• 03/12/2026 Committee recommended measure be held for further study
Bill Text
SECTION 1. Sections 21-28.11-10.1 and 21-28.11-5 of the General Laws in Chapter 21- 28.11 entitled "The Rhode Island Cannabis Act" are hereby amended to read as follows:
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 [May 25, 2022] 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 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 this title.
(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. 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. LC005455 - Page 2 of 14
(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.
(5) Requirements relating to the advertising of cannabis and cannabis products by hybrid cannabis retailers who have been permitted to sell adult use cannabis and hybrid cannabis cultivators who have been permitted to cultivate adult use cannabis pursuant to the provisions of this chapter; provided that, no advertisements for the advertising of cannabis and cannabis products on any medium including, but not limited to, social media, Internet search engines, online advertisements, email marketing, audio/video streaming services, television, radio, newspapers, magazines, direct mail, and billboards, that may be visible to minors.
(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 this title 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; and home delivery.
(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 this title and chapter 26 of title 2 shall be transferred to the commission or as designated by the commission to the cannabis office.
(2) All powers, duties, and responsibilities of the department of environmental management with respect to regulation, administration, and enforcement of chapter 28.6 of this title shall be transferred to the commission or as designated by the commission to the cannabis office. LC005455 - Page 3 of 14
(3) All powers, duties, and responsibilities of the department of health with respect to regulation, administration, and enforcement of chapter 28.6 of this title 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 subsections (a) and (b) of this section 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.
21-28.11-5. 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 LC005455 - Page 4 of 14 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 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 with 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 LC005455 - Page 5 of 14 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 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, laboratory 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 this title, and all rules and regulations promulgated pursuant to this chapter and chapter 28.6 of this title;
(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 this title, 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 LC005455 - Page 6 of 14 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;
(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: LC005455 - Page 7 of 14
(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;
(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 LC005455 - Page 8 of 14 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 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; provided that, no advertisements for the advertising of cannabis and cannabis products on any medium including, but not limited to, social media, Internet search engines, online advertisements, email marketing, audio/video streaming services, television, radio, newspapers, magazines, direct mail, and billboards, that may be visible to minors.
(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 LC005455 - Page 9 of 14 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;
(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 LC005455 - Page 10 of 14 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
(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 LC005455 - Page 11 of 14 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;
(3) Except as provided pursuant to chapter 28.6 of this title, 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; LC005455 - Page 12 of 14
(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 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 subsection (b)(26) of this section.
(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.
SECTION 3. This act shall take effect upon passage.
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 [May 25, 2022] 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 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 this title.
(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. 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. LC005455 - Page 2 of 14
(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.
(5) Requirements relating to the advertising of cannabis and cannabis products by hybrid cannabis retailers who have been permitted to sell adult use cannabis and hybrid cannabis cultivators who have been permitted to cultivate adult use cannabis pursuant to the provisions of this chapter; provided that, no advertisements for the advertising of cannabis and cannabis products on any medium including, but not limited to, social media, Internet search engines, online advertisements, email marketing, audio/video streaming services, television, radio, newspapers, magazines, direct mail, and billboards, that may be visible to minors.
(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 this title 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; and home delivery.
(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 this title and chapter 26 of title 2 shall be transferred to the commission or as designated by the commission to the cannabis office.
(2) All powers, duties, and responsibilities of the department of environmental management with respect to regulation, administration, and enforcement of chapter 28.6 of this title shall be transferred to the commission or as designated by the commission to the cannabis office. LC005455 - Page 3 of 14
(3) All powers, duties, and responsibilities of the department of health with respect to regulation, administration, and enforcement of chapter 28.6 of this title 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 subsections (a) and (b) of this section 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.
21-28.11-5. 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 LC005455 - Page 4 of 14 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 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 with 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 LC005455 - Page 5 of 14 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 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, laboratory 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 this title, and all rules and regulations promulgated pursuant to this chapter and chapter 28.6 of this title;
(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 this title, 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 LC005455 - Page 6 of 14 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;
(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: LC005455 - Page 7 of 14
(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;
(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 LC005455 - Page 8 of 14 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 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; provided that, no advertisements for the advertising of cannabis and cannabis products on any medium including, but not limited to, social media, Internet search engines, online advertisements, email marketing, audio/video streaming services, television, radio, newspapers, magazines, direct mail, and billboards, that may be visible to minors.
(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 LC005455 - Page 9 of 14 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;
(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 LC005455 - Page 10 of 14 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
(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 LC005455 - Page 11 of 14 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;
(3) Except as provided pursuant to chapter 28.6 of this title, 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; LC005455 - Page 12 of 14
(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 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 subsection (b)(26) of this section.
(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.
SECTION 3. This act shall take effect upon passage.
