§ 2-26-5. Authority over licensing and sales.
(a) The commission shall prescribe rules and regulations for the licensing and regulation
of hemp growers, handlers, licensed CBD distributors, and licensed CBD retailers and
persons employed by the applicant not inconsistent with law, to carry into effect
the provisions of this chapter and shall be responsible for the enforcement of the
licensing.
(b) All growers, handlers, licensed CBD distributors, and licensed CBD retailers must
have a hemp license issued by the commission. All production, distribution, and retail
sale of hemp-derived consumable CBD products must be consistent with any applicable
state or local food processing and safety regulations, and the applicant shall be
responsible to ensure its compliance with the regulations and any applicable food
safety licensing requirements, including, but not limited to, those promulgated by
the department of health.
(c) The application for a hemp license shall include, but not be limited to, the following:
(1)(i) The name and address of the applicant who will supervise, manage, or direct the growing
and handling of hemp and the names and addresses of any person or entity partnering
or providing consulting services regarding the growing or handling of hemp; and
(ii) The name and address of the applicant who will supervise, manage, or direct the distribution
or sale of hemp-derived consumable CBD products, and names and addresses of any person
or entity partnering or providing consulting services regarding the distribution or
sale of hemp-derived CBD products.
(2) A certificate of analysis that the seeds or plants obtained for cultivation are of
a type and variety that do not exceed the maximum concentration of delta-9 THC, as
set forth in § 2-26-3; any seeds that are obtained from a federal agency are presumed not to exceed the
maximum concentration and do not require a certificate of analysis.
(3)(i) The location of the facility, including the Global Positioning System location, and
other field reference information as may be required by the commission with a tracking
program and security layout to ensure that all hemp grown is tracked and monitored
from seed to distribution outlets; and
(ii) The location of the facility and other information as may be required by the commission
as to where the distribution or sale of hemp-derived consumable CBD products will
occur.
(4) An explanation of the seed-to-sale tracking, cultivation method, extraction method,
and certificate of analysis or certificate of analysis for the standard hemp seeds
or hemp product if required by the commission.
(5) Verification, prior to planting any seed, that the plant to be grown is of a type
and variety of hemp that will produce a delta-9 THC concentration of no more than
three-tenths of one percent (0.3%) on a dry-weight basis.
(6) Documentation that the licensee and/or its agents have entered into a purchase agreement
with a hemp handler, processor, distributor, or retailer.
(7) All applicants:
(i) Shall apply to the state police, attorney general, or local law enforcement for a
National Criminal Identification records check that shall include fingerprints submitted
to the Federal Bureau of Investigation. Upon the discovery of a disqualifying conviction
defined in subsections (c)(7)(iv) and (c)(7)(v), and in accordance with the rules
promulgated by the commission, the state police shall inform the applicant, in writing,
of the nature of the conviction, and the state police shall notify the commission,
in writing, without disclosing the nature of the conviction, that a conviction has
been found;
(ii) In those situations in which no conviction has been found, the state police shall
inform the applicant and the commission, in writing, of this fact;
(iii) All applicants shall be responsible for any expense associated with the criminal background
check with fingerprints.
(iv) Any applicant who has been convicted of any felony offense under chapter 28 of title 21, or any person who has been convicted of murder; manslaughter; first-degree sexual
assault; second-degree sexual assault; first-degree child molestation; second-degree
child molestation; kidnapping; first-degree arson; second-degree arson; mayhem; robbery;
burglary; breaking and entering; assault with a dangerous weapon; or any assault and
battery punishable as a felony or assault with intent to commit any offense punishable
as a felony, shall, subject to § 28-5.1-14, be disqualified from holding any license or permit under this chapter. The commission
shall notify any applicant, in writing, of a denial of a license pursuant to this
subsection.
(v) For purposes of this section, "conviction� means, in addition to judgments of conviction
entered by a court subsequent to a finding of guilty, or plea of guilty, those instances
where the defendant has entered a plea of nolo contendere and has received a jail
sentence or a suspended jail sentence, or those instances wherein the defendant has
entered into a deferred sentence agreement with the Rhode Island attorney general
and the period of deferment has not been completed.
(8) Any other information as set forth in rules and regulations as required by the commission.
(d) [Deleted by P.L. 2019, ch. 88, art. 15, § 1.]
(e) The commission shall issue a hemp license to the grower or handler applicant if he,
she, or it meets the requirements of this chapter, upon the applicant paying a licensure
fee of two thousand five hundred dollars ($2,500). The license shall be renewed every
two (2) years upon payment of a two thousand five hundred dollar ($2,500) renewal
fee. Any licensee convicted of any disqualifying offense described in subsection (c)(7)(iv)
shall, subject to § 28-5.1-14, have their license revoked. All license fees shall be directed to the commission
to help defray the cost of enforcement. The commission shall collect a nonrefundable
application fee of two hundred fifty dollars ($250) for each application to obtain
a license.
(f) Any grower or handler license applicant or license holder may also apply for and be
issued one (1) CBD distributor and/or one (1) CBD retailer license at no additional
cost, provided their grower or handler license is issued or renewed. CBD distributor
and CBD retailer licenses shall be renewed each year at no additional fee provided
the applicant also holds or renews a grower and/or handler license.
(g) For applicants who do not hold, renew, or receive a grower or handler license, CBD
distributor and CBD retailer licenses shall have a licensure fee of five hundred dollars
($500). The licenses shall be renewed each year upon approval by the commission and
payment of a five hundred dollar ($500) renewal fee.
(h) The commission shall have the authority to temporarily suspend hemp applications and
issuance of new hemp licenses for a defined period if the commission determines that
such action is necessary to:
(1) Conduct a study or evaluation of market conditions, supply and demand dynamics, or
regulatory impacts;
(2) Ensure adequate oversight and compliance with existing licensees; and
(3) Address any identified risks to public health, safety, or environmental welfare.
(i) During a suspension period, the commission may continue to process renewal applications
of existing licensees.