2010 -- H 7838

=======

LC01393

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2010

____________

A N A C T

RELATING TO FOOD AND DRUGS -- TAXATION AND REGULATION OF MARIJUANA

     Introduced By: Representatives Ajello, and Driver

     Date Introduced: February 25, 2010

     Referred To: House Judiciary

It is enacted by the General Assembly as follows:

1-1

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

1-2

amended by adding thereto the following chapter:

1-3

     CHAPTER 37

1-4

     TAXATION AND REGULATION OF MARIJUANA ACT

1-5

     21-37-1. Short title. – This chapter shall be known and may be cited as the “taxation and

1-6

regulation of marijuana act.”

1-7

     21-37-2. Legislative findings. – It is hereby found and declared as follows:

1-8

     (1) In Rhode Island, the nation, and internationally there is an increasing call to take a

1-9

careful look at marijuana policies, their effectiveness, their consequences, and the economic costs

1-10

associated with them;

1-11

     (2) In June 2005, five hundred thirty (530) economists, including three (3) Nobel

1-12

Laureates, endorsed a study on the costs of marijuana prohibition by Harvard professor Dr.

1-13

Jeffrey Miron and called for “an open and honest debate about marijuana prohibition,” adding,

1-14

“We believe such a debate will favor a regime in which marijuana is legal but taxed and regulated

1-15

like other goods.”

1-16

     (3) Heads of state in countries that have been scarred by drug cartel violence are

1-17

beginning to call for a reexamination of drug policies, with past presidents of three Latin

1-18

American countries – calling on the U.S. to consider decriminalization of marijuana;

1-19

     (4) In 2003 the UNODC World Drug Report estimated that the worldwide illicit retail

2-1

market for marijuana is worth one hundred thirteen billion dollars ($113,000,000,000);

2-2

     (5) The complete lack of marijuana market regulation ensures that marijuana production

2-3

and distribution are in the hands of unlicensed growers, untaxed and unmonitored, and the

2-4

product is not controlled or regulated for safety concerns;

2-5

     (6) Rhode Island has been a leader in the nation on medical marijuana policy reform, and

2-6

during the debate on the issue the legislature learned of violence that is created by marijuana

2-7

being sold on the criminal market;

2-8

     (7) There were more than eight hundred forty seven thousand (847,000) arrests for

2-9

marijuana offenses in the United States in 2008, which is more than the entire adult population in

2-10

Rhode Island;

2-11

     (8) Of more than eight hundred forty seven thousand (847,000) marijuana-related arrests

2-12

in 2008 just over six thousand three hundred (6,300) suspects were booked by federal law

2-13

enforcement – less than one percent (1%) – demonstrating that nearly all marijuana arrests occur

2-14

on the state level, and thus state legislative action has the capacity to significantly change policy;

2-15

     (9) There were more than two thousand (2,000) arrests for marijuana offenses in the State

2-16

of Rhode Island in 2007;

2-17

     (10) There is an alarming racial disparity in marijuana arrest in Rhode Island, with

2-18

African-Americans arrested at nearly three (3) times the rate of caucasians in 2007, although their

2-19

marijuana usage rates were very similar;

2-20

     (11) Decades of arresting millions of marijuana users has failed to prevent teenagers or

2-21

anyone else from using marijuana: a study published in the American Journal of Public Health

2-22

compared marijuana use and sales are de facto legal, found “no evidence to support claims that

2-23

criminalization reduces (marijuana) use”; and

2-24

     (12) Allowing adults aged twenty-one (21) and older to use marijuana legally in the

2-25

privacy of their homes would allow police to spend more time preventing and investigating

2-26

serious crimes like murder, rape, assault, robbery, burglary, and driving under the influence of

2-27

alcohol and other drugs and would create substantial savings.

2-28

     21-37-3. Definitions. – As used in this chapter and in chapter 21-36, the following words

2-29

and phrases have the following meanings, unless the context clearly requires otherwise. (1)

2-30

“Department” means the State of Rhode Island department of business regulation.

2-31

     (2) “Marijuana” means all parts of the plant Cannabis sativa L., whether growing or not;

2-32

the seeds thereof; the resin extracted from any part of the plant; and every compound,

2-33

manufacture, salt, the plant, fiber produced from the stalks, oil or cake made from the seeds of the

2-34

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

3-1

stalks (except the resin extracted from it), fiber, oil, or cake, or the sterilized seed of the plant that

3-2

is incapable of germination.

3-3

     (3) “Marijuana paraphernalia” means equipment, products, and materials which are used

3-4

or intended for use in planting, propagating, cultivating, growing, harvesting, manufacturing,

3-5

compounding, converting, producing, processing, preparing, testing, analyzing, packaging,

3-6

repackaging, storing, containing, concealing, ingesting, inhaling, or otherwise introducing

3-7

marijuana into the human body.

3-8

     (4) “Registered safety compliance facility” means an entity registered under section 21-

3-9

36-9 with the department to provide one or both of the following services: training, including that

3-10

related to cultivation of marijuana, safe handling of marijuana, marijuana research, and security

3-11

and inventory procedures; and testing for potency and contaminants.

3-12

     (5) “Registry identification zip tie” means a zip tie issued by the department that

3-13

identifies a marijuana plant that is legally registered for personal cultivation and is not affiliated

3-14

with a retailer or wholesaler.

3-15

     (6) “Retailer” means an entity registered pursuant to section 21-36-2 of the Rhode Island

3-16

general laws to purchase marijuana from a wholesaler and to sell marijuana and marijuana

3-17

paraphernalia to customers.

3-18

     (7) “State prosecution” means prosecution initiated or maintained by the State of Rhode

3-19

Island or an agency or political subdivision of the State of Rhode Island.

3-20

     (8) “Verification system” means a phone or web-based system that is in operation

3-21

twenty-four (24) hours a day that law enforcement personnel shall use to verify registry

3-22

identification zip ties and that shall be established and maintained by the department pursuant to

3-23

subdivision (13).

3-24

     (9) “Wholesaler” means an entity registered pursuant to section 21-36-5 of the Rhode

3-25

Island general laws to cultivate, prepare, package, and sell marijuana to a retailer or another

3-26

wholesaler, but not to sell marijuana to the general public.

3-27

     21-37-4. Exemption. – (a) A person who is twenty-one (21) years of age or older and

3-28

who acts in compliance with the provisions of this chapter is exempt from arrest, civil or criminal

3-29

penalty, seizure or forfeiture of assets, discipline by any state or local licensing board, and state

3-30

prosecution for the following acts:

3-31

     (1) Actually and constructively using, obtaining, purchasing, transporting, or possessing

3-32

one ounce or less of marijuana. As used herein, “one ounce or less of marijuana” includes one

3-33

ounce or less of marijuana, or any mixtures or preparation thereof (including, but not limited to,

3-34

five (5) grams or less of hashish). The weight of any non-marijuana ingredients combined with

4-1

marijuana, such as in a preparation for topical administration or for consumption as food or drink,

4-2

shall not count toward the one ounce limit.

4-3

     (2) Controlling any premises or vehicle where up to one ounce of marijuana per person

4-4

who is twenty-one (21) years of age or older is possessed deposited.

4-5

     (3) Using, obtaining, purchasing, transporting, or possessing, actually or constructively,

4-6

marijuana paraphernalia.

4-7

     (4) Selling marijuana seeds to a wholesaler.

4-8

     (5) Manufacturing, possessing, or producing marijuana paraphernalia.

4-9

     (6) Selling marijuana paraphernalia to retailers, wholesalers, or persons who are twenty

4-10

one (21) years of age or older.

4-11

     (7) Transferring one ounce or less of marijuana without remuneration to a person who is

4-12

twenty one (21) years of age or older.

4-13

     (8) Aiding and abetting another person who is twenty one (21) years of age or older in the

4-14

possession or use of one ounce or less of marijuana.

4-15

     (9) Aiding and abetting another person who is twenty-one (21) years of age or older in

4-16

the possession or use of marijuana paraphernalia.

4-17

     (10) Cultivating three (3) marijuana plants or less in compliance with this chapter, where

4-18

the cultivator possesses valid registry identification zip ties, which are either affixed to or beside

4-19

each plant.

4-20

     (11) Any combination of the acts described in subdivisions (a)(1) through (a)(10),

4-21

inclusive.

4-22

     (b) A retailer or any person who is twenty-one (21) years of age or older and acting in his

4-23

or her capacity as an owner, employee, or agent of a retailer who acts in compliance with the

4-24

provisions of this chapter is exempt from arrest, civil or criminal penalty, seizure or forfeiture of

4-25

assets, discipline by any state or local licensing board, and state prosecution for the following

4-26

acts:

4-27

     (1) Transporting or possessing, actually or constructively, marijuana that was purchased

4-28

from a wholesaler.

4-29

     (2) Possession of marijuana paraphernalia.

4-30

     (3) Obtaining or purchasing marijuana from a wholesaler.

4-31

     (4) Manufacturing, possessing, producing, obtaining, or purchasing marijuana

4-32

paraphernalia.

4-33

     (5) Selling marijuana or marijuana paraphernalia which originates from a wholesaler to

4-34

any person who is twenty one (21) years of age or older.

5-1

     (6) Aiding and abetting any person who is twenty-one (21) years of age or older in the

5-2

possession or use of one ounce or less of marijuana.

5-3

     (7) Aiding and abetting any person who is twenty-one (21) years of age or older in the

5-4

possession or use of marijuana paraphernalia.

5-5

     (8) Controlling any premises or vehicle where marijuana and marijuana paraphernalia is

5-6

possessed, sold, or deposited in accordance with this chapter.

5-7

     (9) Any combination of the acts described in subdivisions (b)(1) through (b)(8), inclusive.

5-8

     (c) A wholesaler or any person who is twenty-one (21) years of age or older and acting in

5-9

his or her capacity as an owner, employee, or agent of a wholesaler who acts in compliance with

5-10

the provisions of this chapter is exempt from arrest, civil or criminal penalty, seizure or forfeiture

5-11

of assets, discipline by any state or local licensing board, and state prosecution for the following

5-12

acts:

5-13

     (1) Cultivating, packing, processing, transporting, or manufacturing marijuana.

5-14

     (2) Transporting or possessing marijuana that was produced by the wholesaler or another

5-15

wholesaler.

5-16

     (3) Transporting or possessing marijuana seeds.

5-17

     (4) Possession of marijuana paraphernalia.

5-18

     (5) Selling marijuana or marijuana paraphernalia to a retailer or a wholesaler.

5-19

     (6) Purchasing marijuana seeds from a person who is twenty-one (21) years of age or

5-20

older.

5-21

     (8) Controlling any premises or vehicle where marijuana and marijuana paraphernalia is

5-22

possessed, manufactured, sold or deposited in accordance with this chapter.

5-23

     (9) Any combination of the acts described in subdivisions (c)(1) through (c)(8), inclusive.

5-24

     (d) By way of clarification, the actions identified and described in this section, when

5-25

undertaken in compliance with the provisions of this chapter, are lawful under Rhode Island state

5-26

law.

5-27

     21-37-5. Defenses. – (a) In a prosecution for selling, giving, or otherwise furnishing

5-28

marijuana or marijuana paraphernalia to any person who is under twenty-one (21) years of age, it

5-29

is a complete defense if:

5-30

     (1) The person who sold, gave, or otherwise furnished marijuana or marijuana

5-31

paraphernalia to a person who is under twenty-one (21) years of age, was a retailer or was acting

5-32

in his or her capacity as an owner, employee, or agent of a retailer at the time the marijuana or

5-33

marijuana paraphernalia was sold, given or otherwise furnished to the person; and

5-34

     (2) Immediately before selling, giving, or otherwise furnishing marijuana or marijuana

6-1

paraphernalia to a person who is under twenty-one (21) years of age the person who sold, gave, or

6-2

otherwise furnished the marijuana or marijuana paraphernalia was shown a document which

6-3

appeared to be issued by an agency of a federal, state, tribal, or foreign sovereign government and

6-4

which indicated that the person to whom the marijuana or marijuana paraphernalia was sold,

6-5

given, or otherwise furnished was twenty-one (21) years of age or older at the time the marijuana

6-6

or marijuana paraphernalia was sold, given or otherwise furnished to the person.

6-7

     (b) The complete defense set forth in this section does not apply if:

6-8

     (1) The document which was shown to the person who sold, gave, or otherwise furnished

6-9

the marijuana or marijuana paraphernalia was counterfeit, forged, altered, or issued to a person

6-10

other than the person to whom the marijuana or marijuana paraphernalia was sold, given, or

6-11

otherwise furnished; and

6-12

     (2) Under the circumstances, a reasonable person who would have known or suspected

6-13

that the document was counterfeit, forged, altered, or issued to a person other than the person to

6-14

whom the marijuana or marijuana paraphernalia was sold, given, or otherwise furnished.

6-15

     21-37-6. Personal use. – A person who is twenty-one (21) years of age or older may

6-16

cultivate three (3) marijuana plants or less for personal use if the person is in compliance with this

6-17

section. The cultivation must only occur in a closet, room, greenhouse, or other area enclosed on

6-18

all sides and equipped with locks or other security devices that permit access only by the

6-19

cultivator, except that if more than one adult lives in the household and possess valid zip ties, the

6-20

plants may all be cultivated in the same location. Cultivation may not occur in public view and

6-21

must occur on property lawfully in possession of the cultivator. The cultivator must affix a valid

6-22

registry identification zip tie to each plant or beside each plant. The application of renewal fee for

6-23

each zip tie is one hundred dollars ($100), and such zip tie is valid for one year from the date of

6-24

issuance.

6-25

     21-37-7. Identification zip ties -- Registry. – (a) The department shall issue registry

6-26

identification zip ties to Rhode Island residents who submit the following, in accordance with the

6-27

department’s regulations:

6-28

     (1) Application or renewal fee;

6-29

     (2) Name, address, and date of birth of applicant, showing the applicant to be twenty one

6-30

(21) years of age or older;

6-31

     (3) Number of marijuana plant registration identification zip ties requested, up to three

6-32

(3); and

6-33

     (4) A statement signed by the applicant, pledging not to sell or receive anything of value

6-34

for the marijuana the applicant would personally cultivate.

7-1

     (b) The department shall verify the information contained in a zip tie application or

7-2

renewal submitted pursuant to this section, and shall approve or deny an application or renewal

7-3

within fifteen (15) days of receiving it. The department may deny an application or renewal only

7-4

if the applicant did not provide the information required pursuant to this section, the applicant did

7-5

not provide the application or renewal fee, if the applicant had previously had one or more zip ties

7-6

revoked, or if the department determines that the information provided was falsified. Rejection of

7-7

an application or renewal is considered a final department action, subject to judicial review.

7-8

Jurisdiction and venue for judicial review are vested in the Rhode Island superior court.

7-9

     (c) The department shall issue registry identification zip ties to applicants within five (5)

7-10

days of approving an application or renewal. Each registry identification zip tie shall expire one

7-11

year after the date of issuance. Registry identification zip ties shall contain the following:

7-12

     (1) The date of issuance and expiration date of the registry identification zip tie; and

7-13

     (2) A random twenty (20) digit alphanumeric identification number, containing at least

7-14

four (4) numbers and at least four (4) letters, which is unique to the zip tie.

7-15

     (d) The following confidentiality rules shall apply:

7-16

     (1) Applications and supporting information submitted are confidential.

7-17

     (2) The department shall maintain a confidential list of the persons to whom the

7-18

department has issued registry identification zip ties. Individual names and other identifying

7-19

information on the list shall be confidential, exempt from the Freedom of Information Act, and

7-20

not subject to disclosure, except to authorized employees of the department as necessary to

7-21

perform official duties of the department and as provided in subsection (d) of this section.

7-22

     (3) Within one hundred twenty (120) days of the effective date of this act, the department

7-23

shall establish a phone or web-based verification system that is in operation twenty-four (24)

7-24

hours a day, which law enforcement personnel can use to verify registry identification zip ties.

7-25

The verification system must allow law enforcement personnel to enter in a registry identification

7-26

number to determine whether or not the number corresponds with a current, valid ID zip tie. The

7-27

system shall not disclose any additional information about the zip tie holder.

7-28

     (4) During business hours, the department shall provide any additional information

7-29

needed by law enforcement personnel to verify the zip ties, including the name and address

7-30

corresponding with a zip tie the law enforcement personnel seeks to verify.

7-31

     (5)(i) It shall be a crime, punishable by up to one hundred eighty (180) days in jail and a

7-32

one thousand dollar ($1,000) fine, for any person, including an employee or official of the

7-33

department or another state agency or local government, to breach the confidentiality of

7-34

information obtained pursuant to this act.

8-1

     (ii) Notwithstanding this provision, this section shall not prevent the following

8-2

notifications:

8-3

     (A) Department employees may notify law enforcement about falsified or fraudulent

8-4

information submitted to the department, so long as the employee who suspects that falsified or

8-5

fraudulent information has been submitted confers with his or her supervisor (or at least one other

8-6

employee of the department) and both agree that circumstances exist which warrant reporting;

8-7

and

8-8

     (B) The department may notify state or local law enforcement about apparent criminal

8-9

violations of this act, provided that the employee who suspects the offense confers with his or her

8-10

supervisor and both agree that circumstances exist which warrant reporting.

8-11

     21-37-8. Revocation of zip ties. – The department shall revoke the zip ties of any zip tie

8-12

holder who sells marijuana after having received zip ties from the department, unless the person

8-13

sold marijuana as an employee of a retailer or wholesaler who was acting in accordance with this

8-14

chapter. The department may revoke the zip ties of any zip tie holder who knowingly violates this

8-15

chapter.

8-16

     21-37-9. Exclusions. – No person is exempt from arrest, civil or criminal penalty, seizure

8-17

or forfeiture of assets, discipline by any state or local licensing board, and state prosecution for,

8-18

nor may he or she establish an affirmative defense based on this chapter to charges arising from,

8-19

any of the following acts:

8-20

     (1) Driving, operating, or being in actual physical control of a vehicle or a vessel under

8-21

power or sail while impaired by marijuana.

8-22

     (2) Possessing marijuana if the person is a prisoner.

8-23

     (3) Possessing marijuana or possessing marijuana paraphernalia if the possession of the

8-24

marijuana or marijuana paraphernalia is discovered because the person engaged or assisted in the

8-25

use of marijuana in:

8-26

     (i) Any local detention facility, county jail, state prison, reformatory, or other correctional

8-27

facility, including, without limitation, any facility for the detention of juvenile offenders; or

8-28

     (ii) Any preschool, elementary school, junior high school, or high school.

8-29

     (4) Possessing, using, transferring, selling, or cultivating marijuana or committing any

8-30

other act involving marijuana in violation of the provisions of this chapter.

8-31

     21-37-10. Prohibition. – (a) Smoking marijuana shall be prohibited in all enclosed public

8-32

places, as identified in section 23-20.10-3. A person who smokes marijuana in such a place shall

8-33

be guilty of a petty misdemeanor, and may be punished as follows:

8-34

     (1) By a fine of not more than two hundred fifty dollars ($250) for the first violation;

9-1

     (2) By a fine of not more than five hundred dollars ($500) for the second violation;

9-2

     (3) By a fine of not more than one thousand dollars ($1,000) for the third and subsequent

9-3

violations; or

9-4

     (4) Imprisonment for a term not exceeding six (6) months and the appropriate fine.

9-5

     (b) Smoking marijuana shall be prohibited in all non-enclosed outdoor public places or in

9-6

any place open to the public, and anyone who smokes marijuana in such a place shall be liable for

9-7

a civil penalty of one hundred fifty dollars ($150). Municipalities may impose additional fines

9-8

equivalent to local fines for the consumption of alcohol in a non-enclosed outdoor public place or

9-9

any place open to the public. The provisions of this chapter do not require employers to

9-10

accommodate the use or possession of marijuana, or being under the influence of marijuana, in a

9-11

place of employment. Any minor who falsely represents himself or herself to be twenty-one (21)

9-12

years of age or older in order to obtain any marijuana or marijuana paraphernalia pursuant to this

9-13

chapter is guilty of a misdemeanor.

9-14

     21-37-11. Lawful uses. – Notwithstanding any other law, it is lawful and not a violation

9-15

of Rhode Island law to possess, transport, or sell the mature stalks of the plant Cannabis sativa L.,

9-16

fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound,

9-17

manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin

9-18

extracted therefrom, which is regulated as marijuana), fiber, oil, or cake or the sterilized seed of

9-19

the plant that is incapable of germination.

9-20

     21-37-12. Expungement. – This act shall, by operation of law, expunge the conviction of

9-21

anyone previously convicted of possession of one ounce or less of marijuana or possession of

9-22

marijuana paraphernalia, provided that person was twenty-one (21) years of age or older at the

9-23

time of conviction.

9-24

     21-37-13. Not applicable to other forms. – Nothing contained herein shall be construed

9-25

to repeal or modify any law concerning the medical use of marijuana or tetrahydrocannabinol in

9-26

other forms, such as Marinol.

9-27

     21-37-14. Penalties. – Penalties as provided for in Rhode Island general laws 21-28-4

9-28

through 21-28-4.08 shall not apply to this act.

9-29

     SECTION 2. Chapter 21-28 of the General Laws entitled "Uniform Controlled

9-30

Substances Act" is hereby amended by adding thereto the following section:

9-31

     21-28-4.09.1. Exemptions to penalties. – Penalties as set forth in accordance with this

9-32

chapter shall not apply to legal uses as set forth in Rhode Island general laws sections 21-37-1

9-33

through 21-37-13, inclusive.

9-34

     SECTION 3. Section 31-27-2 of the General Laws in Chapter 31-27 entitled "Motor

10-1

Vehicle Offenses" is hereby amended to read as follows:

10-2

     31-27-2. Driving under influence of liquor or drugs. -- (a) Whoever drives or

10-3

otherwise operates any vehicle in the state while under the influence of any intoxicating liquor,

10-4

drugs, toluene, or any controlled substance as defined in chapter 28 of title 21, or any

10-5

combination of these, shall be guilty of a misdemeanor except as provided in subdivision (d)(3)

10-6

and shall be punished as provided in subsection (d) of this section.

10-7

      (b) (1) Any person charged under subsection (a) of this section whose blood alcohol

10-8

concentration is eight one-hundredths of one percent (.08%) or more by weight as shown by a

10-9

chemical analysis of a blood, breath, or urine sample shall be guilty of violating subsection (a) of

10-10

this section. This provision shall not preclude a conviction based on other admissible evidence.

10-11

Proof of guilt under this section may also be based on evidence that the person charged was under

10-12

the influence of intoxicating liquor, drugs, toluene, or any controlled substance defined in chapter

10-13

28 of title 21, or any combination of these, to a degree which rendered the person incapable of

10-14

safely operating a vehicle. The fact that any person charged with violating this section is or has

10-15

been legally entitled to use alcohol or a drug shall not constitute a defense against any charge of

10-16

violating this section.

10-17

      (2) Whoever drives or otherwise operates any vehicle in the state with a blood presence

10-18

of any scheduled controlled substance as defined within chapter 28 of title 21 except for

10-19

marijuana, as shown by analysis of a blood or urine sample, shall be guilty of a misdemeanor and

10-20

shall be punished as provided in subsection (d) of this section. Whoever drives or otherwise

10-21

operates any vehicle in the state with a blood presence of marijuana, as shown by analysis of a

10-22

blood or urine sample, shall be guilty of a misdemeanor and shall be punished as provided in

10-23

subsection (d) of this section only if it is proven, examining the totality of the circumstances, that

10-24

the driver is impaired. The driver shall not be considered to be impaired by marijuana solely

10-25

because of the presence of metabolites or components of marijuana unless those metabolites or

10-26

components are proven to be in sufficient concentration to cause impairment.

10-27

      (c) In any criminal prosecution for a violation of subsection (a) of this section, evidence

10-28

as to the amount of intoxicating liquor, toluene, or any controlled substance as defined in chapter

10-29

28 of title 21, or any combination of these, in the defendant's blood at the time alleged as shown

10-30

by a chemical analysis of the defendant's breath, blood, or urine or other bodily substance shall be

10-31

admissible and competent, provided that evidence is presented that the following conditions have

10-32

been complied with:

10-33

      (1) The defendant has consented to the taking of the test upon which the analysis is

10-34

made. Evidence that the defendant had refused to submit to the test shall not be admissible unless

11-1

the defendant elects to testify.

11-2

      (2) A true copy of the report of the test result was mailed within seventy-two (72) hours

11-3

of the taking of the test to the person submitting to a breath test.

11-4

      (3) Any person submitting to a chemical test of blood, urine, or other body fluids shall

11-5

have a true copy of the report of the test result mailed to him or her within thirty (30) days

11-6

following the taking of the test.

11-7

      (4) The test was performed according to methods and with equipment approved by the

11-8

director of the department of health of the state of Rhode Island and by an authorized individual.

11-9

      (5) Equipment used for the conduct of the tests by means of breath analysis had been

11-10

tested for accuracy within thirty (30) days preceding the test by personnel qualified as

11-11

hereinbefore provided, and breathalyzer operators shall be qualified and certified by the

11-12

department of health within three hundred sixty-five (365) days of the test.

11-13

      (6) The person arrested and charged with operating a motor vehicle while under the

11-14

influence of intoxicating liquor, toluene, or any controlled substance as defined in chapter 28 of

11-15

title 21, or, any combination of these in violation of subsection (a) of this section was afforded the

11-16

opportunity to have an additional chemical test. The officer arresting or so charging the person

11-17

shall have informed the person of this right and afforded him or her a reasonable opportunity to

11-18

exercise this right, and a notation to this effect is made in the official records of the case in the

11-19

police department. Refusal to permit an additional chemical test shall render incompetent and

11-20

inadmissible in evidence the original report.

11-21

      (d) (1) (i) Every person found to have violated subdivision (b)(1) of this section shall be

11-22

sentenced as follows: for a first violation whose blood alcohol concentration is eight one-

11-23

hundredths of one percent (.08%) but less than one-tenth of one percent (.1%) by weight or who

11-24

has a blood presence of any scheduled controlled substance as defined in subdivision (b)(2) shall

11-25

be subject to a fine of not less than one hundred dollars ($100) nor more than three hundred

11-26

dollars ($300), shall be required to perform ten (10) to sixty (60) hours of public community

11-27

restitution, and/or shall be imprisoned for up to one year. The sentence may be served in any unit

11-28

of the adult correctional institutions in the discretion of the sentencing judge and/or shall be

11-29

required to attend a special course on driving while intoxicated or under the influence of a

11-30

controlled substance, and his or her driver's license shall be suspended for thirty (30) days up to

11-31

one hundred eighty (180) days.

11-32

      (ii) Every person convicted of a first violation whose blood alcohol concentration is one-

11-33

tenth of one percent (.1%) by weight or above but less than fifteen hundredths of one percent

11-34

(.15%) or whose blood alcohol concentration is unknown shall be subject to a fine of not less than

12-1

one hundred ($100) dollars nor more than four hundred dollars ($400) and shall be required to

12-2

perform ten (10) to sixty (60) hours of public community restitution and/or shall be imprisoned

12-3

for up to one year. The sentence may be served in any unit of the adult correctional institutions in

12-4

the discretion of the sentencing judge. The person's driving license shall be suspended for a

12-5

period of three (3) months to twelve (12) months. The sentencing judge shall require attendance

12-6

at a special course on driving while intoxicated or under the influence of a controlled substance

12-7

and/or alcoholic or drug treatment for the individual.

12-8

      (iii) Every person convicted of a first offense whose blood alcohol concentration is

12-9

fifteen hundredths of one percent (.15%) or above, or who is under the influence of a drug,

12-10

toluene, or any controlled substance as defined in subdivision (b)(1) shall be subject to a fine of

12-11

five hundred dollars ($500) and shall be required to perform twenty (20) to sixty (60) hours of

12-12

public community restitution and/or shall be imprisoned for up to one year. The sentence may be

12-13

served in any unit of the adult correctional institutions in the discretion of the sentencing judge.

12-14

The person's driving license shall be suspended for a period of three (3) months to eighteen (18)

12-15

months. The sentencing judge shall require attendance at a special course on driving while

12-16

intoxicated or under the influence of a controlled substance and/or alcohol or drug treatment for

12-17

the individual.

12-18

      (2) (i) Every person convicted of a second violation within a five (5) year period with a

12-19

blood alcohol concentration of eight one-hundredths of one percent (.08%) or above but less than

12-20

fifteen hundredths of one percent (.15%) or whose blood alcohol concentration is unknown or

12-21

who has a blood presence of any controlled substance as defined in subdivision (b)(2), and every

12-22

person convicted of a second violation within a five (5) year period regardless of whether the

12-23

prior violation and subsequent conviction was a violation and subsequent conviction under this

12-24

statute or under the driving under the influence of liquor or drugs statute of any other state, shall

12-25

be subject to a mandatory fine of four hundred dollars ($400). The person's driving license shall

12-26

be suspended for a period of one year to two (2) years, and the individual shall be sentenced to

12-27

not less than ten (10) days nor more than one year in jail. The sentence may be served in any unit

12-28

of the adult correctional institutions in the discretion of the sentencing judge; however, not less

12-29

than forty-eight (48) hours of imprisonment shall be served consecutively. The sentencing judge

12-30

shall require alcohol or drug treatment for the individual, and may prohibit that person from

12-31

operating a motor vehicle that is not equipped with an ignition interlock system for a period of

12-32

one year to two (2) years following the completion of the sentence as provided in section 31-27-

12-33

2.8.

12-34

      (ii) Every person convicted of a second violation within a five (5) year period whose

13-1

blood alcohol concentration is fifteen hundredths of one percent (.15%) or above by weight as

13-2

shown by a chemical analysis of a blood, breath, or urine sample or who is under the influence of

13-3

a drug, toluene, or any controlled substance as defined in subdivision (b)(1) shall be subject to

13-4

mandatory imprisonment of not less than six (6) months nor more than one year, a mandatory fine

13-5

of not less than one thousand dollars ($1,000) and a mandatory license suspension for a period of

13-6

two (2) years from the date of completion of the sentence imposed under this subsection.

13-7

      (3) (i) Every person convicted of a third or subsequent violation within a five (5) year

13-8

period with a blood alcohol concentration of eight one-hundredths of one percent (.08%) or above

13-9

but less than fifteen hundredths of one percent (.15%) or whose blood alcohol concentration is

13-10

unknown or who has a blood presence of any scheduled controlled substance as defined in

13-11

subdivision (b)(2) regardless of whether any prior violation and subsequent conviction was a

13-12

violation and subsequent conviction under this statute or under the driving under the influence of

13-13

liquor or drugs statute of any other state, shall be guilty of a felony and be subject to a mandatory

13-14

fine of four hundred ($400) dollars. The person's driving license shall be suspended for a period

13-15

of two (2) years to three (3) years, and the individual shall be sentenced to not less than one year

13-16

and not more than three (3) years in jail. The sentence may be served in any unit of the adult

13-17

correctional institutions in the discretion of the sentencing judge; however, not less than forty-

13-18

eight (48) hours of imprisonment shall be served consecutively. The sentencing judge shall

13-19

require alcohol or drug treatment for the individual, and may prohibit that person from operating

13-20

a motor vehicle that is not equipped with an ignition interlock system for a period of two (2) years

13-21

following the completion of the sentence as provided in section 31-27-2.8.

13-22

      (ii) Every person convicted of a third or subsequent violation within a five (5) year

13-23

period whose blood alcohol concentration is fifteen hundredths of one percent (.15%) above by

13-24

weight as shown by a chemical analysis of a blood, breath, or urine sample or who is under the

13-25

influence of a drug, toluene or any controlled substance as defined in subdivision (b)(1) shall be

13-26

subject to mandatory imprisonment of not less than three (3) years nor more than five (5) years, a

13-27

mandatory fine of not less than one thousand dollars ($1,000) nor more than five thousand dollars

13-28

($5,000) and a mandatory license suspension for a period of three (3) years from the date of

13-29

completion of the sentence imposed under this subsection.

13-30

      (iii) In addition to the foregoing penalties, every person convicted of a third or

13-31

subsequent violation within a five (5) year period regardless of whether any prior violation and

13-32

subsequent conviction was a violation and subsequent conviction under this statute or under the

13-33

driving under the influence of liquor or drugs statute of any other state shall be subject, in the

13-34

discretion of the sentencing judge, to having the vehicle owned and operated by the violator

14-1

seized and sold by the state of Rhode Island, with all funds obtained by the sale to be transferred

14-2

to the general fund.

14-3

      (4) (i) For purposes of determining the period of license suspension, a prior violation

14-4

shall constitute any charge brought and sustained under the provisions of this section or section

14-5

31-27-2.1.

14-6

      (ii) Any person over the age of eighteen (18) who is convicted under this section for

14-7

operating a motor vehicle while under the influence of alcohol, other drugs, or a combination of

14-8

these, while a child under the age of thirteen (13) years was present as a passenger in the motor

14-9

vehicle when the offense was committed may be sentenced to a term of imprisonment of not more

14-10

than one year and further shall not be entitled to the benefit of suspension or deferment of this

14-11

sentence. The sentence imposed under this section may be served in any unit of the adult

14-12

correctional institutions in the discretion of the sentencing judge.

14-13

      (5) (i) Any person convicted of a violation under this section shall pay a highway

14-14

assessment fine of five hundred dollars ($500) which shall be deposited into the general fund. The

14-15

assessment provided for by this subsection shall be collected from a violator before any other

14-16

fines authorized by this section.

14-17

      (ii) Any person convicted of a violation under this section shall be assessed a fee. The

14-18

fee shall be as follows:

14-19

     FISCAL YEAR FISCAL YEAR FISCAL YEAR

14-20

     1993-1995 1996-1999 2000-2010

14-21

     $147 $173 $86

14-22

      (6) (i) If the person convicted of violating this section is under the age of eighteen (18)

14-23

years, for the first violation he or she shall be required to perform ten (10) to sixty (60) hours of

14-24

public community restitution, and the juvenile's driving license shall be suspended for a period of

14-25

six (6) months, and may be suspended for a period up to eighteen (18) months. The sentencing

14-26

judge shall also require attendance at a special course on driving while intoxicated or under the

14-27

influence of a controlled substance and alcohol or drug education and/or treatment for the

14-28

juvenile. The juvenile may also be required to pay a highway assessment fine of no more than

14-29

five hundred dollars ($500), and the assessment imposed shall be deposited into the general fund.

14-30

      (ii) If the person convicted of violating this section is under the age of eighteen (18)

14-31

years, for a second or subsequent violation regardless of whether any prior violation and

14-32

subsequent conviction was a violation and subsequent under this statute or under the driving

14-33

under the influence of liquor or drugs statute of any other state, he or she shall be subject to a

14-34

mandatory suspension of his or her driving license until such time as he or she is twenty-one (21)

15-1

years of age and may, in the discretion of the sentencing judge, also be sentenced to the Rhode

15-2

Island training school for a period of not more than one year and/or a fine of not more than five

15-3

hundred dollars ($500).

15-4

      (7) Any person convicted of a violation under this section may undergo a clinical

15-5

assessment at a facility approved by the department of mental health retardation and hospitals.

15-6

Should this clinical assessment determine problems of alcohol, drug abuse, or psychological

15-7

problems associated with alcoholic or drug abuse, this person shall be referred to the T.A.S.C.

15-8

(treatment alternatives to street crime) program for treatment placement, case management, and

15-9

monitoring.

15-10

      (e) Percent by weight of alcohol in the blood shall be based upon milligrams of alcohol

15-11

per one hundred (100) cubic centimeters of blood.

15-12

      (f) (1) There is established an alcohol and drug safety unit within the division of motor

15-13

vehicles to administer an alcohol safety action program. The program shall provide for placement

15-14

and follow-up for persons who are required to pay the highway safety assessment. The alcohol

15-15

and drug safety action program will be administered in conjunction with alcohol and drug

15-16

programs within the department of mental health retardation and hospitals.

15-17

      (2) Persons convicted under the provisions of this chapter shall be required to attend a

15-18

special course on driving while intoxicated or under the influence of a controlled substance,

15-19

and/or participate in an alcohol or drug treatment program. The course shall take into

15-20

consideration any language barrier which may exist as to any person ordered to attend, and shall

15-21

provide for instruction reasonably calculated to communicate the purposes of the course in

15-22

accordance with the requirements of the subsection. Any costs reasonably incurred in connection

15-23

with the provision of this accommodation shall be borne by the person being retrained. A copy of

15-24

any violation under this section shall be forwarded by the court to the alcohol and drug safety

15-25

unit. In the event that persons convicted under the provisions of this chapter fail to attend and

15-26

complete the above course or treatment program, as ordered by the judge, then the person may be

15-27

brought before the court, and after a hearing as to why the order of the court was not followed,

15-28

may be sentenced to jail for a period not exceeding one year.

15-29

      (3) The alcohol and drug safety action program within the division of motor vehicles

15-30

shall be funded by general revenue appropriations.

15-31

      (g) The director of the health department of the state of Rhode Island is empowered to

15-32

make and file with the secretary of state regulations which prescribe the techniques and methods

15-33

of chemical analysis of the person's body fluids or breath, and the qualifications and certification

15-34

of individuals authorized to administer this testing and analysis.

16-1

      (h) Jurisdiction for misdemeanor violations of this section shall be with the district court

16-2

for persons eighteen (18) years of age or older and to the family court for persons under the age

16-3

of eighteen (18) years. The courts shall have full authority to impose any sentence authorized and

16-4

to order the suspension of any license for violations of this section. All trials in the district court

16-5

and family court of violations of the section shall be scheduled within thirty (30) days of the

16-6

arraignment date. No continuance or postponement shall be granted except for good cause shown.

16-7

Any continuances that are necessary shall be granted for the shortest practicable time. Trials in

16-8

superior court are not required to be scheduled within thirty (30) days of the arraignment date.

16-9

      (i) No fines, suspensions, assessments, alcohol or drug treatment programs, course on

16-10

driving while intoxicated or under the influence of a controlled substance, public community

16-11

restitution, or jail provided for under this section can be suspended.

16-12

      (j) An order to attend a special course on driving while intoxicated that shall be

16-13

administered in cooperation with a college or university accredited by the state, shall include a

16-14

provision to pay a reasonable tuition for the course in an amount not less than twenty-five dollars

16-15

($25.00), and a fee of one hundred seventy-five dollars ($175), which fee shall be deposited into

16-16

the general fund.

16-17

      (k) For the purposes of this section, any test of a sample of blood, breath, or urine for the

16-18

presence of alcohol, which relies in whole or in part upon the principle of infrared light

16-19

absorption is considered a chemical test.

16-20

      (l) If any provision of this section or the application of any provision shall for any reason

16-21

be judged invalid, such a judgment shall not affect, impair, or invalidate the remainder of the

16-22

section, but shall be confined in this effect to the provision or application directly involved in the

16-23

controversy giving rise to the judgment.

16-24

     SECTION 4. Title 21 of the General Laws entitled "FOOD AND DRUGS" is hereby

16-25

amended by adding thereto the following chapter:

16-26

     CHAPTER 36

16-27

RETAILER AND WHOLESALER REGISTRATION AND APPLICATIONS IN

16-28

ACCORDANCE WITH THE REGULATION OF MARIJUANA BILL

16-29

     21-36-1. Short title. -- This chapter shall be known and may be cited as the “retailer

16-30

registration and the regulation of marijuana act.”

16-31

     21-36-2. Retailer registration. – (a) An entity may apply, in accordance with the

16-32

provisions of this chapter and the regulations adopted pursuant thereto, for the issuance of a

16-33

registration authorizing the entity to act as a retailer pursuant to the provisions of this chapter.

16-34

     (b) Each applicant for a retailer registration shall submit application materials required by

17-1

the department and a non-refundable fee in an amount determined by the department.

17-2

     (c) By one year after the effective date of this chapter, the department shall have issued at

17-3

least one retailer registration per county. By two (2) years after the effective date of this act, the

17-4

department shall have issued a number of retailer registrations that are no fewer than one valid

17-5

and outstanding retailer license for every 75,000 residents of the county per county, provided a

17-6

sufficient number of qualified applicants exist. If more qualifying applicants apply than the

17-7

department is required to authorize, the department shall implement a competitive scoring process

17-8

to determine to which applicants to grant registrations. The scoring system shall take into account

17-9

the applicant and managing officers' applicable experience, training, and expertise; the applicant's

17-10

plan for security and to prevent diversion; and criminal, civil, or regulatory issues encountered by

17-11

other entities that applicant and managing officers have controlled or managed; the applicant's

17-12

staffing and training plan; and the suitability of the proposed location.

17-13

     (d) The fee for the initial issuance of a registration as a retailer is five thousand dollars

17-14

($5,000). A registration as a retailer must be renewed annually. The fee for renewal of a

17-15

registration as a retailer is five thousand dollars ($5,000).

17-16

     (e) If eighteen (18) months after the effective date of this act the department has failed to

17-17

issue a retailer registration as required by this chapter a retail registration shall be granted to any

17-18

qualified applicant who holds a retail tobacco products dealer license and who has submitted a

17-19

notarized letter of intention to begin operating as a retailer and a five thousand ($5,000) fee to the

17-20

department at least ninety (90) days before beginning operations.

17-21

     21-36-3. Definitions. -- As used in this chapter, "qualified applicant" means any entity

17-22

that:

17-23

     (1) Complies with any regulations adopted pursuant to Rhode Island general laws 21-36-

17-24

11 of this act concerning application for and issuance of a registration; and

17-25

     (2) Satisfies the requirements set forth in this chapter and any regulations adopted

17-26

pursuant thereto.

17-27

     21-36-4. Requirements. -- A retailer shall include a safety insert with all marijuana sold.

17-28

The safety insert may, at the department's discretion, be developed and approved by the

17-29

department and include, but not be limited to, information on:

17-30

     (1) Methods for administering marijuana;

17-31

     (2) Any potential dangers stemming from the use of marijuana;

17-32

     (3) How to recognize what may be problematic usage of marijuana and obtain

17-33

appropriate services or treatment for problematic usage.

17-34

     (4) A retailer must sell the marijuana in its original wholesaler packaging without making

18-1

any changes or repackaging.

18-2

     21-36-5. Wholesale registration. -- (1) An entity may apply, in accordance with the

18-3

provisions of this chapter and the regulations adopted pursuant thereto, for the issuance of a

18-4

registration authorizing the entity to act as a retailer pursuant to the provisions of this chapter.

18-5

     (2) Each applicant for a retailer registration shall submit application materials required by

18-6

the department and a non-refundable fee in an amount determined by the department.

18-7

     (3) By three (300) hundred days after the effective date of this act, the department shall

18-8

have issued at least three (3) wholesaler registrations, provided that qualified applicants exist. By

18-9

two (2) years after the effective date of this act, the department shall have issued a number of

18-10

wholesaler registrations that are sufficient to meet demand. If more qualifying applicants apply

18-11

than the department is required to authorize, the department shall implement a competitive

18-12

scoring process to determine to which applicants to grant registrations. The scoring system shall

18-13

take into account the applicant and managing officers applicable experience, training, and

18-14

expertise; the applicant's plan for security and diversion prevention; any criminal, civil, or

18-15

regulatory issues encountered by other entities the applicant and managing officers have

18-16

controlled or managed; the applicant's staffing and training plan; and the suitability of the

18-17

proposed location.

18-18

     (4) The fee for the initial issuance of a registration as a wholesaler is five thousand

18-19

dollars ($5,000). A registration as a wholesaler must be renewed annually. The fee for renewal of

18-20

a registration as a wholesaler is five thousand dollars ($5,000).

18-21

     (5) If eighteen (18) months after the effective date of this act the department has failed to

18-22

issue any wholesaler registrations as required by this chapter a wholesaler registration shall be

18-23

granted to any qualified applicant who has submitted a notarized letter of intention to begin

18-24

operating as a wholesaler and a five thousand dollar ($5,000) fee to the department at least ninety

18-25

(90) days before beginning operations.

18-26

     21-36-6. Requirements. -- A wholesaler shall cultivate only in one or more enclosed,

18-27

locked facilities, which include a building, room, greenhouse, or other area enclosed on all sides

18-28

and equipped with locks or other security devices that permit access only by:

18-29

     (1) Employees, agents, or owners of the wholesaler, all of whom must be twenty-one (21)

18-30

years of age or older;

18-31

     (2) Department staffers or public safety officers performing official duties; or

18-32

     (3) Contractors performing labor that is unrelated to marijuana cultivation, packaging, or

18-33

processing, provided that they must be accompanied by an employee, agent, or owner of the

18-34

wholesaler.

19-1

     (4) A wholesaler or any person who is acting in his or her capacity as an owner,

19-2

employee, or agent of a wholesaler must have documentation when transporting marijuana on

19-3

behalf of the wholesaler that specifies the amount of marijuana being transported, the address and

19-4

contact information of the wholesaler, the date the marijuana is being transported, and the address

19-5

and contact information for the intended retailer or other wholesaler. A wholesaler must create a

19-6

unique package and label for its marijuana identifying itself as the producer. The packaging shall

19-7

include:

19-8

     (i) The name or registration number of the wholesaler.

19-9

     (ii) The potency of the marijuana, represented by the percentage of tetrahydrocannabinol

19-10

by mass.

19-11

     (iii) A "Produced On” date which reflects the date that the wholesaler finished drying and

19-12

processing the marijuana and placed it in its packaging.

19-13

     (iv) A warning that states: "Consumption of marijuana impairs your ability to drive a car

19-14

or operate machinery."

19-15

     (v) A warning that states: "Possession of marijuana is illegal outside of Rhode Island and

19-16

under federal law" unless federal or state laws have changed.

19-17

     21-36-7. Prohibitions and Penalties. -- (a) The department may not issue a registration

19-18

for a retailer, wholesaler, or registered safety compliance facility to an entity:

19-19

     (1) That is located within five hundred feet (500') of the property line of a public school,

19-20

private school, or structure used primarily for religious services or worship;

19-21

     (2) That would be engaged in business as a gas station, convenience store, grocery store,

19-22

night club, dance hall, or licensed gaming establishment at the same location; or

19-23

     (3) That sells intoxicating liquor for consumption on or off the premises. Nothing shall

19-24

prohibit local governments from enacting ordinances or regulations not in conflict with this

19-25

section or with department rules regulating the time, place, and manner of wholesaler, retailer, or

19-26

registered safety compliance facility operations, provided that no local government may prohibit

19-27

wholesaler, retailer, or registered safety compliance facility operation altogether, either expressly

19-28

or through the enactment of ordinances or regulations which make wholesaler, retailer, or

19-29

registered safety compliance facility operation impracticable.

19-30

     (b) A retailer shall not:

19-31

     (1) Sell, give or otherwise furnish marijuana or marijuana paraphernalia to any person

19-32

who is under twenty-one (21) years of age.

19-33

     (2) Allow any person who is under twenty-one (21) years of age to be present inside the

19-34

establishment unless the person is a department employee or public safety officer performing his

20-1

or her duties or a contractor performing labor unrelated to marijuana and who will not have

20-2

access to marijuana.

20-3

     (3) Knowingly and willfully sell, give, or otherwise furnish an amount of marijuana to a

20-4

person that would cause that person to possess more than one ounce of marijuana.

20-5

     (4) Purchase marijuana, other than marijuana seeds, from any person other than a

20-6

wholesaler.

20-7

     (5) Purchase or sell, give, or otherwise furnish marijuana in any manner other than as

20-8

authorized pursuant to the provisions of this chapter and any regulations adopted pursuant thereto.

20-9

     (6) Knowingly or negligently sell marijuana that has been adulterated or contaminated by

20-10

a controlled substance, illegal additive, or pesticide.

20-11

     (c) In addition to any other penalty provided pursuant to specific statutes, a person who

20-12

violates this section is guilty of a misdemeanor and shall be punished by a fine of not more than

20-13

one thousand dollars ($1,000). A person who violates this section may also incur civil liability.

20-14

Additionally, the department may suspend or terminate the registration of a retailer who commits

20-15

multiple or serious violations of this act or regulations issued pursuant to it.

20-16

     (d) In a prosecution for a violation of subsection (a) or (b) subdivision (1) it is a complete

20-17

defense that immediately before allowing the person who is under twenty-one (21) years of age

20-18

onto the premises the person who allowed the person onto the premises was shown a document

20-19

which appeared to be issued by an agency of a federal, state, tribal, or foreign sovereign,

20-20

government and which indicated that the person who was allowed onto the premises of the

20-21

retailer was twenty-one (21) years of age or older at the time the person was allowed onto the

20-22

premises of the retailer. The complete defense set forth in this subsection does not apply if:

20-23

     (1) The document which was shown to the person who allowed the person who is under

20-24

twenty-one (21) years of age onto the premises of the retailer was counterfeit, forged, altered, or

20-25

issued to a person other than the person who was allowed onto the premises of the retailer; and

20-26

     (2) Under the circumstances, a reasonable person would have known or suspected that the

20-27

document was counterfeit, forged, altered, or issued to a person other than the person who was

20-28

allowed onto the premises.

20-29

     (e) A wholesaler shall not:

20-30

     (1) Allow any person who is under twenty-one (21) years of age to be present on the

20-31

premises of its establishment unless the person is a department employee or public safety officer

20-32

performing his or her duties or a contractor performing labor unrelated to marijuana cultivation,

20-33

packaging, and processing.

20-34

     (2) Sell, give, or otherwise furnish marijuana to any person other than a retailer or

21-1

wholesaler.

21-2

     (3) Purchase marijuana from any person other than a wholesaler.

21-3

     (4) Purchase or sell, give, or otherwise furnish marijuana in any manner other than as

21-4

authorized pursuant to the provisions of this chapter and any regulations adopted pursuant thereto.

21-5

     (5) Sell marijuana that has been adulterated or contaminated by any other substance,

21-6

including, without limitation, any controlled substance or illegal additive or pesticide.

21-7

     (f) In addition to any other penalty provided pursuant to specific statues, a person who

21-8

violates this section is guilty of a misdemeanor and shall be punished by a fine or not more than

21-9

one thousand dollars ($1,000). A person who violates this section may also incur civil liability.

21-10

Additionally, the department may suspend or terminate the registration of a wholesaler who

21-11

commits multiple or serious violations of this act or regulations issued pursuant to it.

21-12

     21-36-8. Defenses. -- In a prosecution for a violation of section 21-36-7 it is a complete

21-13

defense that immediately before allowing the person who is under twenty-one (21) years of age

21-14

onto the premises the person who allowed the person onto the premises was shown a document

21-15

which appeared to be issued by an agency of a federal, state, tribal, or foreign sovereign

21-16

government and which indicated that the person who was allowed onto the premises of the

21-17

wholesaler was twenty-one (21) years of age or older at the time the person was allowed onto the

21-18

premises of the wholesaler. The complete defense set forth in this subsection does not apply if:

21-19

     (1) A document which was shown to the person who allowed the person who is under

21-20

twenty-one (21) years of age onto the premises of the wholesaler was counterfeit, forged, altered,

21-21

or issued to a person other than the person who was allowed onto the premises of the wholesaler;

21-22

and

21-23

     (2) Under the circumstances, a reasonable person would have known or suspected that the

21-24

document was counterfeit, forged, altered, or issued to a person other than the person who was

21-25

allowed onto the premises.

21-26

     (3) In order to ascertain that marijuana is produced or has not been adulterated or

21-27

contaminated, a wholesaler may use a registered safety compliance facility to test its marijuana

21-28

for contaminants and for tetrahydrocannabinol potency before providing it to a retailer.

21-29

     21-36-9. Safety compliance facility registration. -- (a) Each applicant for a safety

21-30

compliance facility registration shall submit application materials required by the department and

21-31

a non-refundable fee in an amount determined by the department.

21-32

     (b) If a qualified applicant exists, the department shall grant a two (2) year registration to

21-33

at least one safety compliance facility within one year of the effective date of this act, provided

21-34

that the facility pays a five thousand dollar ($5,000) fee. If more qualifying applicants apply than

22-1

the department is required to authorize, the department shall implement a competitive scoring

22-2

process to determine which applicant or applicants to grant registrations to. The scoring system

22-3

shall take into account the applicant and managing officers' applicable experience, training, and

22-4

expertise; the applicant's plan for security and to prevent diversion; any criminal, civil, or

22-5

regulatory issues encountered by other entities the applicant and managing officers controlled or

22-6

managed; the applicant's plan for services; the applicant's staffing and training plan; and the

22-7

suitability of the proposed location.

22-8

     (c) A registered safety compliance facility or any person who is twenty-one (21) years of

22-9

age or older and acting in his or her capacity as an owner, employee, or agent of a registered

22-10

safety compliance facility who acts in compliance with the provisions of this chapter shall not be

22-11

subject to prosecution; search, except by the department pursuant to section 21-36-7 or penalty in

22-12

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

22-13

disciplinary action by a court or business licensing board or entity, solely for acting in accordance

22-14

with this act and department regulations to provide the following services; acquiring or

22-15

possessing marijuana obtained from wholesalers; returning the marijuana to the same

22-16

wholesalers; producing and possessing marijuana for training and analytical testing; producing

22-17

and selling educational materials on marijuana; receiving compensation for testing for

22-18

contaminants or potency; researching marijuana; and providing training to Rhode Island residents

22-19

who are twenty-one (21) years of age or older. Any possession or cultivation of marijuana by a

22-20

registered safety compliance facility must occur on the location registered with the department.

22-21

     (d) In addition to any other penalty provided pursuant to specific statutes, the department

22-22

may suspend or terminate the registration of a registered safety compliance facility who commits

22-23

multiple or serious violations of this act or regulations issued pursuant to it.

22-24

     21-36-10. Excise tax. -- (a) An excise tax is hereby levied upon wholesalers and must be

22-25

collected respecting all marijuana sold to retailers at the rate of fifty dollars ($50) per ounce or

22-26

proportionate part thereof.

22-27

     (b) Marijuana sold by retailers shall be subject to sales tax to be collected by retailers. For

22-28

the purpose of determining the tax for the retail sale of marijuana pursuant to this chapter, the tax

22-29

for the sale of marijuana must be the same as the taxes for the retail sale of other products

22-30

generally.

22-31

     (c) This chapter shall not create any new taxes on medical marijuana, as defined by

22-32

section 21-37-3. Medical marijuana is excluded from the taxes of subsections (a) and (b) herein.

22-33

     21-36-11, Administration. -- The department shall apportion the money remitted to the

22-34

department from registration fees and taxes collected pursuant to this chapter in the following

23-1

manner:

23-2

     (1) The department shall retain sufficient money to defray the entire cost of

23-3

administration of this chapter.

23-4

     (2) After retaining sufficient money to defray the entire cost of administration of this

23-5

chapter pursuant to subdivision (1), the department shall remit the remaining money to the Rhode

23-6

Island general fund, fifty (50%) percent of which must be distributed to the department of mental

23-7

health, retardation and hospitals for use in voluntary programs for the prevention or treatment of

23-8

the abuse of alcohol, tobacco or controlled substances. A person shall not advertise the sale of

23-9

marijuana through television, radio, newspapers, magazines, billboards, the Internet or any other

23-10

written or oral commercial media. This shall not prevent a phone listing in a directory of

23-11

businesses, appropriate signs on the retailer locations that do not include marijuana imagery, or

23-12

listings in trade publications. The provisions of this chapter do not authorize any person to

23-13

transport marijuana into or outside the State of Rhode Island unless federal law permits such

23-14

transport. The department is responsible for administering and carrying out the provisions of this

23-15

chapter. The department may adopt regulations that are necessary and convenient to administer

23-16

and carry out the provisions of this chapter.

23-17

     (3) The department shall adopt regulations that:

23-18

     (i) Set forth the procedures for the application for and issuance of registrations to

23-19

retailers, wholesalers, and registered as a retailer, wholesaler, or safety compliance testing

23-20

facility.

23-21

     (ii) Specify the procedures for the collection of taxes levied pursuant to this chapter.

23-22

     (iii) Specify the content, form, and timing of reports which must be completed by each

23-23

retailer, wholesaler, and registered safety compliance testing facility and which must be available

23-24

for inspection by the department. The reports shall include information on sales, expenses,

23-25

inventory, and taxes and shall be retained for at least one year after the forms completion.

23-26

     (iv) Specify the requirements for the packaging and labeling of marijuana.

23-27

     (v) Specify the requirements for the safety insert to be included with marijuana by

23-28

retailers.

23-29

     (vi) Establish reasonable security requirements for wholesalers and retailers.

23-30

     (vii) Require the posting or display of the registration of a retailer, wholesaler, or

23-31

registered safety compliance testing facility.

23-32

     (viii) Establish the procedures for inspecting and auditing the records or premises of a

23-33

retailer, wholesaler, or registered safety compliance testing facility.

23-34

     (ix) Set forth the procedures for hearings to contest the denial of an application for a

24-1

registration as a retailer, wholesaler, or registered safety compliance testing facility.

24-2

     (x) Set forth the procedures for hearings to contest the suspension or revocation of a

24-3

registration as a retailer, wholesaler, or registered safety compliance testing facility for a violation

24-4

of any provision of this chapter or the regulations adopted pursuant to this chapter.

24-5

     (xi) Establish reasonable environmental controls to ensure that any registered premises

24-6

minimize any harm to the environment, adjoining and nearby landowners, and persons passing

24-7

by.

24-8

     (4) The department shall make available free of charge all forms for applications and

24-9

reports.

24-10

     (5) The department shall issue registrations as required by section 21-36-5.

24-11

     (6) The department shall keep the name and address of each wholesaler, retailer, and

24-12

safety compliance facility and each owner, employee, or agent of a wholesaler, retailer, and safety

24-13

compliance facility confidential and refuse to disclose this information to any individual or public

24-14

or private entity, except as necessary for authorized employees of the department to perform

24-15

official duties of the department pursuant to this chapter. The department may confirm to a state

24-16

or local law enforcement officer that a retailer, wholesaler, or safety compliance facility holds a

24-17

valid registration if the law enforcement officer inquires about the specific location or entity.

24-18

     (7) If any provisions of this act, or the application thereof to any person, thing, or

24-19

circumstance is held invalid, such invalidity shall not affect the provisions or application of this

24-20

act which can be given effect without the invalid provision or application, and to this end the

24-21

provisions of this act are declared to be severable.

24-22

     (8) The department shall adopt regulations to implement this act and shall begin

24-23

accepting applications for retailers, wholesalers, zip ties, and safety compliance facilities within

24-24

one hundred eighty (180) days of the effective date of this act.

24-25

     If the department fails to adopt regulations to implement this act and begin processing

24-26

applications for retailers and wholesalers within one hundred eighty (180) days of the effective

24-27

date of this act, any citizen may commence an action in a court of competent jurisdiction to

24-28

compel the department to perform the actions mandated pursuant to the provisions of this act.

24-29

     SECTION 5. Chapter 44-49 of the General Laws entitled "Taxation of Marijuana and

24-30

Controlled Substances" is hereby amended by adding thereto the following section:

24-31

     44-49-17. No tax stamp required. -- Controlled substance tax payment with a stamp or

24-32

other official indicia, as referred to in section 44-49-5, is not required for registered retailers and

24-33

wholesalers and the penalties provided for in the this chapter do not apply to those acting in

24-34

accordance with sections 21-37-1 to 21-37-13 and 21-36-1 to 21-36-11, inclusive.

25-1

SECTION 6. This act shall take effect upon passage.

=======

LC01393

=======

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO FOOD AND DRUGS -- TAXATION AND REGULATION OF MARIJUANA

***

26-1

     This act would allow some personal use of marijuana under certain circumstances, sets

26-2

restrictions both under and over the age of twenty-one (21) years of age, exclusions to this use,

26-3

registration, for prohibitions to. It would also exempt penalties in compliance with the statutes

26-4

including driving under the influence. This act would also oversee retailer and wholesaler

26-5

registration, administration for all marijuana sold.

26-6

     This act would take effect upon passage.

=======

LC01393

=======