Battle Between Raimondo and Mattiello Over Compassion Centers Takes a New Turn

Battle Between Raimondo and Mattiello Over Compassion Centers Takes a New Turn

Rhode Island Speaker of the House Nicholas Mattiello and Senate President Dominick Ruggerio are filing new legislation on compassion center licensing statutes and regulations.

The move is part of an ongoing battle focused primarily between Rhode Island Governor Gina Raimondo and Mattiello over control of the emerging marijuana industry in Rhode Island.

In October, Raimondo announced that she filed a lawsuit seeking a declaration from the Superior Court that provisions of Article 15 of the FY20 Budget requiring legislative approval of marijuana and hemp regulations are unconstitutional.

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In her statement when filing the suit, Raimondo claimed the separation of powers violation opened the door for "inside dealing."

The suit by Raimondo alleges that the General Assembly violated the constitutional guarantee of Separation of Powers by giving itself the right to veto – and thereby control – executive regulations governing marijuana and hemp. 

Her objection to the unprecedented legislative power grab was supported by John Marion of Common Cause RI.

“We believe this is an unconstitutional power-grab on the part of the House of Representatives. GoLocal's reporting raises important questions about the motives behind that legislation,” Marion told GoLocal in October. GoLocal had reported in October that a Mattiello top staffer had an ownership interest in a hemp company at the time of the legislative change.

The law now reads, “The department [DBR] may adopt rules and regulations based on federal law provided those rules and regulations are designed to comply with federal guidance and mitigate federal enforcement against the licenses issued under this chapter. All new and revised rules and regulations promulgated by the department of business regulation and/or the department of health pursuant to this chapter shall be subject to approval by the general assembly prior to enactment.”

The requirement of final approval of the department’s regulation is precedent-setting in Rhode Island.

 

More Complexities

Mattiello's Deputy Chief of Staff Grant Pilkington is an owner in American Standard Hemp — a company whose other “key officers” include some of the most influential and powerful players in the Rhode Island State House -- and Common Cause raised concerns about potential conflicts.

“Pilkington's ownership stake in American Standard Hemp raises numerous red flags. In June the House of Representatives passed significant changes to the Hemp Growth Act as part of the state budget,” Marion told GoLocal in October. 

Pilkington has had a meteoric rise in Mattiello’s office. In the 2016 campaign, Pilkington was a paid campaign worker of Mattiello earning $6,824 over a six month period.

Around January 1, 2017, he joined the Mattiello State House office as a staffer. State records show he is now paid $88,000 and has risen to Deputy Chief of Staff.

“If Mr. Pilkington was involved in any way with that legislation it could very well represent a conflict of interest given his ownership stake. It raises greater suspicions because the House inserted language in this year's budget that allows the General Assembly to veto any regulations issued by the Department of Business Regulations with regard to the Hemp Growth Act,” said Marion.

 

Mattiello and Ruggerio's New Legislation

The new Mattiello and Ruggerio bill will also address the lawsuit filed by the executive branch this fall -- but in a new structure, tries to give the legislature new powers to circumvent regulations that have been drafted by the Department of Business Regulation.

“The legislation introduced today fulfills the General Assembly’s pledge to repeal language contained in FY 2020 budget which required legislators to approve rules and regulations relating to the expansion of compassion center licenses. The General Assembly has done what it promised to do,” said Mattiello.

“The proposed regulations would implement limits on compassion centers, some of which were initially proposed by the administration in legislation last year, were thoroughly vetted by the Assembly, and were rejected on their merits. We didn’t punt those decisions to regulators; we decided, after due consideration, they did not create the kind of fair and appropriate system Rhode Islanders deserve,” said Ruggerio.

The legislation will also address the “assertion” by legislative leaders that the regulations that were proposed by the executive branch, in fact, constitute a separate breach of the separation of powers by overstepping the authority granted to regulators under the law.

Mattiello added, “The fact remains that the Department of Business Regulations’ proposed regulations, which must comply with the legislation, represents a blatant overreach by the executive branch. Our bill clarifies the regulatory powers granted to the executive branch regarding the expansion of compassion center licenses.”

Mattiello and Ruggerio’s bill will be given consideration by legislators early in the session

The Bill

The new legislation amends the law passed last year to allow the licensing of six new compassion centers and increase the licensing fee to $500,000 each, removing a provision that required the Assembly to approve resulting regulations developed by the executive branch.

The bill adds four provisions clarifying intended regulatory limits. Under the legislation, regulators would not be allowed to:

• limit centers based on geographical zones;
• prevent any center from growing its own supply of medical marijuana or limit by regulation the number of plants, seedlings or marijuana it may have;
• require a market demand for new compassion centers to cultivate;
• lower the limit on the number of patients that licensed primary caregivers are allowed to assist.