Here’s What You Need to Know About RI Senate Leadership’s Marijuana Legalization Legislation

Tuesday, March 09, 2021

GoLocalProv News Team

Senate leaders pushing for legalization

Senate leadership on Tuesday unveiled legislation to create a comprehensive tax and regulatory structure that legalizes cannabis in the State of Rhode Island. If enacted, a Cannabis Control Commission would oversee a competitive and accessible licensing structure that would generate tax revenue through the sales tax, a special sales tax, and a local sales tax.

The bill has the support of Senate President Dominick Ruggerio, according to Senate spokesman Greg Pare.

The legislation, which will be sent to Senate Judiciary Committee, legalizes the possession of up to one ounce of marijuana by individuals over the age of 21. It also allows for home grow comparable to neighboring Massachusetts. Cannabis consumption would be prohibited in public places, and unsealed containers would be prohibited from the passenger areas of a car.

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Insiders

The medical marijuana industry in Rhode Island has been dominated by insiders. As GoLocal first reported in December, the applicants who applied for the additional medical marijuana licenses were almost all well-connected operatives — politicians, elected officials, and lobbyists.

SLIDES: See Applicants for New Medical Marijuana Licenses BELOW

According to sponsor Senator Josh Miller, this bill will be more equitable. But, the history of legalization has not shown that to be a reality.

“Cannabis legalization is as much about reconciliation as it is revenue,” said Senate Majority Leader Michael J. McCaffrey. “The Justice Reinvestment prison reform initiative showed that policies of prohibition have disproportionately impacted communities of color, and I believe we must ensure any effort to legalize cannabis recognizes and rectifies those wrongs. Low barriers to entry, expungement reform, and broad access to programs designed to increase access for individuals and communities impacted by the failed War on Drugs are an important and necessary component.”

The Commission would be a five-member, full-time board "tasked with overseeing the licensing of four aspects of the cannabis supply chain: cultivation, manufacturing, retail, and testing," said the announcement.

To prevent monopolization of the new market, no business entity would be allowed to possess more than one license.

The legislation also creates the Cannabis Equity Fund to provide technical and grant assistance to qualified individuals and a fee-free mandatory expungement process for individuals with marijuana-related offenses. None of the now licensed medical marijuana

In addition to the 3% local sales tax and the state’s regular sales tax, a cannabis sales tax of 10% would apply. Licensing fees range from as low as $100 for a small cultivator’s license, $5,000 for manufacturers and testing entities’ licenses, and up to $20,000 for the largest cultivators and retailers.

SEE FACT SHEET BELOW

Once passed, the Cannabis Control Commission would be empowered to establish rules and regulations for the state’s cannabis market and tasked to vet applicants. Retail licenses would be capped at one license per 10,000 residents per municipality, but every community would be eligible for at least three retail licenses. While cities and towns would have the opportunity to opt-out through voter referendum, in doing so they would forgo their opportunity to garner a three percent local tax collected at point of sale. Communities could pass local ordinances to regulate the time, place, and manner of cannabis operators; however, local communities could not impose any additional fees or contingencies.

“We want to provide cities and towns with the ability to opt-out, but we cannot allow an overly burdensome patchwork of regulation throughout our state,” said Leader McCaffrey. “We know from experiences in other states that less parochialism and lower fees leads to greater transparency and a more competitive market. If a community wants to opt-out and forgo tax revenue that is one thing, but we also need to make sure the process is open and transparent.”

“We have worked for many years to develop and improve legislation that implements a cannabis tax and regulatory structure,” said Senator Miller. “Over the years, I have sponsored legislation and led commissions, and we have all learned from the experiences in other states. The approach we are taking is not just about tax revenue. It’s about rectifying past wrongs and opening new opportunities. And it’s about smarter drug policy. Prohibition clearly didn’t work, and is next to impossible with the availability legal cannabis just over the state border. I’m excited to be introducing this legislation today and look forward to the hearing process.”

The legislators claim in a fact sheet:

Legal Cannabis

•   Legalizes cannabis possession under 1 once for Rhode Islanders age 21 and up
•   Allows home grow comparable to neighboring Massachusetts: 6 active plants and up to 12 plants total.
•   Cannabis consumption prohibited in public places.
•   Unsealed containers prohibited from passenger areas of a motor vehicle.

Regulatory Structure

• Regulatory structure similar to alcohol and overseen by a board of commissioners to be called the Cannabis Control Commission.
• Tax structure will include the regular state sales tax (7%), a special state sales tax of 10%, and a local sales tax of 3%. The local tax would be remitted to the municipality where the point of sale occurred.

Supply Chain

• Four different types of licenses depending on role in supply chain:

o   Cultivator License fee of $100 to $20,000, depending on size and type
o   Manufacturer License fee of $5,000
o   Retail License fee of $20,000
o   Testing License fee of $5,000

Entities will be limited to possessing one license to "promote equity, competition, and accountability."

Past Offenses

• There will be a process for expunging marijuana-related offenses free of charge, whereby individuals file notice with the court for an automatic review of their record.

A "Marketplace for All"

• Application and licensing fees will fund a “Cannabis Equity Fund,” which will be used to provide technical assistance and grants to applicants from disproportionately impacted areas.

Here’s What You Need to Know About RI Senate Leadership’s Marijuana Legalization Legislation

Related Slideshow: Meet the Compassion Center Applicants - Dec. 2020

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