§ 21-28.11-5 — § 21-28.11-5. Powers and duties of the commission.

Rhode Island § 21-28.11-5

• Jurisdiction: Rhode Island
• Title 21: Food And Drugs
• Ch. 21-28.11: The Rhode Island Cannabis Act

Text

§ 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 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 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 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:

(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 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;

(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 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 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 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;

(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.

Legislative History

P.L. 2022, ch. 31, § 1, effective May 25, 2022; P.L. 2022, ch. 32, § 1, effective May 25, 2022.