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

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Tuesday, March 09, 2021

GoLocalProv News Team

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.

Meet the Compassion Center Applicants - Dec. 2020

Livity Compassion Center

DIRECTOR JEFF FOSS 185 YORK AVENUE PAWTUCKET, RI

DIRECTOR DANIELLE FOSS 185 YORK AVENUE PAWTUCKET, RI

DIRECTOR JOEL TROJAN 1988 LOUISQUISSET PIKE LINCOLN, RI -- President & CEO at Century Drywall Inc. in Lincoln.

Medici Compassionate Care Center, Inc.

DIRECTOR CHRISTOPHER EDWARD ROY 12 EDELWEISS AVE LINCOLN, RI 02865 USA - Retired Woonsocket Police Officer

DIRECTOR MATTHEW J RADEBACH 13 STONE GATE DRIVE WARREN, RI 02885 USA

DIRECTOR EDWARD MAURICE ROY 63 LILAC AVE WOONSOCKET, RI 02895 USA

New Leaf Compassion Center Inc

MANAGER RICHARD W RADEBACH 2077 EAST MAIN ROAD PORTSMOUTH, RI

DIRECTOR THOMAS MIRZA 197 TAUNTON AVENUE EAST PROVIDENCE, RI

DIRECTOR DAVID BAZAR 70 NORTH CLIFF DRIVE NARRAGANSETT, RI

DIRECTOR GEORGE CANCEL 31 BAKEWELL COURT CRANSTON, RI - Heads Tele-Networks and has given in excess of $20,000 in political donations to Speaker of the House Nick Mattiello and Speaker-elect Joe Shekarchi.

Pinnacle Compassion Center Inc.

DIRECTOR COURTNEY E. GUILBERT 108 MICHAELA COURT WEST KINGSTON, RI

DIRECTOR MICHAEL BISZKO JR 149 NORTH COURT TIVERTON, RI - Donated $1,000 to Speaker Nick Mattiello in 2019, listing his employer as his family construction business. And Michael III also donated $1,000.

DIRECTOR CLAY RESNICK 45 SANDRA COURT BRISTOL, RI

DIRECTOR DOUGLAS GUILBERT 108 MICHAELA COURT WEST KINGSTON, RI -- In 2019, gave Speaker of the House Nick Mattiello $1,000 under the corporate name Eden of RI, a RI marijuana cultivation business.

R.M.I. Compassion Center, Inc.

President and Director PAUL J ISIKWE, PHARMD, MS 100 EXCHANGE STREET, UNIT 505 PROVIDENCE, RI

Director MAKANJUOLA A. FALAYE, MBA, CPA 190 BROAD STREET, SUITE 3W PROVIDENCE, RI

Director CLEOPATRA M IRELAND, MBA 100 EXCHANGE STREET, UNIT 505 PROVIDENCE, RI

Ascend Rhode Island Compassion Center

DIRECTOR ROBERT E. FLAHERTY 70 JEFFERSON BOULEVARD WARWICK, RI - Former State Representative and brother of Supreme Court Justice Frank Flaherty.

DIRECTOR ARTHUR BOWDISH 36 11TH STREET PROVIDENCE, RI

DIRECTOR KATHLEEN M. HAGERTY 85 CARA COURT NORTH KINGSTOWN, RI - Former prosecutor in the Rhode Island Attorney General's office.

Faded Minds, Inc.

DIRECTOR DAVID BRAYTON 255 JOHN DYER RD LITTLE COMPTON, RI

DIRECTOR NICHOLAS VALEN SOTELO 9 KING RD MIDDLETOWN, RI 02842 USA

DIRECTOR PETER A. D'ALLESANDRO 1 POTTERSVILLE RD LITTLE COMPTON, RI 02837 USA

Lucy Rozen Compassion Center

DIRECTOR DAVID VINCENT ROZEN 187 SHADOW BROOK DRIVE WARWICK, RI - Top executive with Foxwoods.

DIRECTOR DAVID JOSEPH MEDEIROS 56 DEERFIELD COURT NORTH KINGSTOWN, RI - Former high ranking member of the RI State Police and RI National Guard.

DIRECTOR DAVID ANTHONY PONTARELLI 130 MADISON AVENUE CRANSTON, RI -- Fired from the City of Providence in 2012. READ MORE HERE

Perfect Union - RI

DIRECTOR RICK MCAULIFFE 65 MEADOW ST WARWICK, RI - State House lobbyist

DIRECTOR JEFF TAYLOR 65 MEADOW ST WARWICK, RI - State House lobbyist

DIRECTOR ROBERT GRILLO 65 MEADOW ST WARWICK, RI

Rhode Island Care Concepts, Inc.

DIRECTOR DAVID JOHNSTON 15 CIRCLE ST. EAST PROVIDENCE, RI 02916 USA

DIRECTOR SHANE COOPER 15 CIRCLE ST. EAST PROVIDENCE, RI 02916 USA

DIRECTOR ANDY COTTON 15 CIRCLE ST. EAST PROVIDENCE, RI 02916 USA

Rhode Island Compassion Center Inc.

DIRECTOR DAVID J DISANTO 24 1/2 WALKER RD FOSTER, RI

DIRECTOR DAVID P DISANTO 80 COOLRIDGE AVENUE GREENVILLE, RI

The two DiSantos gave Speaker-elect Joe Shekarchi $1,000 each in 2019. David P, an acoountant, also gave Speaker Nick Mattiello $1,000 a year for each of the last three years.

Sanctuary Medicinals

DIRECTOR GEOFFREY LEWIS 2 ANGELL STREET, PROVIDENCE, RI

DIRECTOR MARK PELSON 359 RUMSTICK ROAD BARRINGTON, RI - An investment banker with close ties to Governor Gina Raimondo. He served on her transition team for Governor.

DIRECTOR FRANCIS X. MCMAHON 1 SHADY LANE BARRINGTON, RI He is a long-time Rhode Island State House lobbyist.

Solar Therapeutics Rhode Island, Inc.

DIRECTOR RONALD RAPOPORT 48 LEONARD DRIVE TIVERTON, RI 02878 USA

DIRECTOR NICHOLAS J HEMOND, ESQ. 618 PLEASANT VALLEY PARKWAY PROVIDENCE, RI 02908 USA - Chair of the Providence School Committee and a State House lobbyist.

DIRECTOR JILL NASUTI 15 PALISADE LANE BARRINGTON, RI 02806 USA

Green Wave CC

DIRECTOR CHRISTOPHER D. SANDS 771 POST ROAD WAKEFIELD, RI 02879 USA

DIRECTOR RICHARD D. COMOLLI 771 POST ROAD WAKEFIELD, RI 02879 USA

DIRECTOR DR. ROCCO ANDREOZZI III 771 POST ROAD WAKEFIELD, RI 02879 USA

Cann Cure Compassion, Inc.

DIRECTOR GREGORY S. COOPER 3363 POST ROAD SOUTH KINGSTOWN, RI 02879 USA

DIRECTOR PATRICIA A. THORNTON 3363 POST ROAD SOUTH KINGSTOWN, RI 02879 USA

DIRECTOR MICHAEL WATKINS 13 GURNSEY AVENUE BRANFORD, RI 02808 USA

Coastal Farms Wellness Center, Inc.

DIRECTOR PATRICK KILROY 16 1/2 FRANKLIN STREET NEWPORT, RI 02840 USA

DIRECTOR STEPHEN ROHNER 24 POPE STREET NEWPORT, RI 02840 USA - Served as a top executive in Giovanni Feroce's Benrus.

DIRECTOR CRAIG KILROY 4 SHERMAN STREET NEWPORT, RI 02840 USA

Compassion Center of New England

DIRECTOR JASON DOLLARHIDE 20 CONGRESS RD. NARRAGANSETT, RI

DIRECTOR THOMAS P. MCGOVERN 26 HILTON RD. WARWICK, RI

DIRECTOR JANE AHLEMEYER 55 MCBRIDE DR. PORTSMOUTH, RI - Brand manager for Samsonite.

Co-op City I Inc.

DIRECTOR ROBERT HANSEN 15 MARCY ST. CRANSTON, RI

DIRECTOR CHRIS MORGAN 800 PLAINFIELD PIKE NORTH SCITUATE, RI

DIRECTOR MATTHEW RESNICK 85 PATERSON AVE WARWICK, RI

Enlite RI, Inc.

DIRECTOR LEONARD L. LOPES ONE PARK ROW, 5TH FLOOR PROVIDENCE, RI - RI State House lobbyist and an agent for a number of college coaches and administrators.

DIRECTOR PETER PICKNELLY 56 GREEN HILL OCEAN DRIVE SOUTH KINGSTOWN, RI

DIRECTOR MARK CUTTING 28 APPLETON STREET HOLYOKE, MA

Mammoth Health and Wellness, Inc.

DIRECTOR SPENCER BLIER 103 BLADE STREET WARWICK, RI

DIRECTOR JON CONNORS 5471 POST ROAD EAST GREENWICH, RI

DIRECTOR STUART BURNS SMITH 319 ELMDALE ROAD NORTH SCITUATE, RI

DIRECTOR GARY BLIER 1 HALL STREET EAST GREENWICH, RI

DIRECTOR CHRISTOPHER B DALE 23 QUEENSFORTH WAY NORTH KINGSTOWN, RI

Members of this team are also involved with Mammoth Inc which is "a modern-day state-of-the-art medical marijuana cultivation and solvent-less extraction facility located in Rhode Island."