Rhode Island Senate Approves Marijuana Legalization Bill

PROVIDENCE, RI — In a historic move, the Rhode Island Senate passed a bill Tuesday night that would legalize recreational marijuana use in the state. The vote marked the first time such a bill reached the floor of either legislative chamber in the state.

Senate President Dominick Ruggerio said it's time for Rhode Island to keep pace with other states by legalizing recreational marijuana use.

"Under the status quo, with cannabis readily available, Rhode Island must address all the societal costs, but we have no regulatory framework and no associated revenue stream," Ruggerio said. "The longer we wait to open a cannabis marketplace, the further behind we fall from a competitive standpoint. Senator Josh Miller and Majority Leader Michael McCaffrey have put forth thoughtful legislation that will create a competitive cannabis economy with low barriers to entry. I encourage our partners in government to continue to work with us to bring this needed legislation over the goal line."

"Cannabis legalization is a monumental shift in public policy that effectively creates a new economy," said Sen. Joshua Miller, the bill's sponsor. "We want to ensure as many Rhode Islanders as possible have the opportunity to participate in this new economy. That is why we set low, tiered licensing fees and we are also calling for the creation of a Cannabis Equity Fund to help individuals who have been directly and indirectly impacted by our past policy of prohibition."

If signed into law, the bill would allow Rhode Islanders 21 and older to have up to 1 ounce of marijuana in their possession, along with home-grow rules similar to that of neighboring Massachusetts. Consumption in public areas would be prohibited, and unsealed containers would be banned in passenger areas of vehicles.

A 3 percent local sales tax would apply, as well as the state's regular sales tax and an additional cannabis tax of 10 percent. Licensing fees would range from $100 for a cultivator's license to $5,000 for manufacturers and testing entities' licenses. The largest stores and growers would have to pay as much as $20,000.

The bill also calls for the creation of a five-member Cannabis Control Commission board, responsible for overseeing the four aspects of the supply chain: cultivation, manufacturing, sales and testing. The board would have the power to create rules and regulations for the market, as well as vet applicants.

Another key feature of the legislation is the creation of a Cannabis Equity Fund, which would offer technical and grant assistance to qualified people as well as provide a cost-free expungement process for people with marijuana-related expenses on their criminal record.

"Cannabis legalization is as much about reconciliation as it is revenue," Majority Leader Michael McCaffrey said. "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 amended legislation would cap retail licenses at one per 20,000 residents per city or town, double the initial amount proposed. It also calls for one-third of all licenses to be reserved for groups of people who have historically been disproportionately harmed by previous drug enforcement laws. Finally, it would place a moratorium on cultivator licenses until July 1, 2023.

Cities and towns would have the ability to opt out through a voter referendum. If so, the municipality would forgo the 3 percent local sales tax revenue. Local ordinances could be passed to regulate marijuana sales, though no new fees or contingencies can be passed at the local level.

"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," McCaffrey said. "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."

Miller said he and his fellow lawmakers have worked for many years to develop effective, equitable cannabis legislation.

"Over the years, I have sponsored legislation and led commissions, and we have all learned from the experiences in other states," Miller said. "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 borders. I’m look forward to continuing to work with my colleagues in government to bring this bill to enactment."

Read more: Marijuana Legalization In RI: What To Know About Proposed Law