PROVIDENCE – If state lawmakers and Gov. Daniel J. McKee can’t find common ground on legislation to legalize recreational marijuana use this year, most Rhode Island business groups won’t complain.
A proposal by McKee in his fiscal 2022 budget and a Senate bill co-sponsored by Sen. Joshua Miller, D-Cranston, remain bottled up in the General Assembly as lawmakers head into the homestretch of this year’s legislative session. The fiscal year ends June 30.
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Miller told Providence Business News recently that if the General Assembly does not pass a bill this year, it would be a serious setback for proponents of legalized recreational marijuana use by adults.
“We feel that a delay of a year would be a real problem for several reasons,” said Miller. “It is serious – a lot of work has gone into this. To lose that momentum would be a setback that would be hard to recover from.”
Mark Deion, owner of the Warwick-based Deion Associates & Strategies, Inc. and a small- business advocate who sits on the lieutenant governor’s Small Business Advisory Council, said that from a business standpoint it is good that the legalization effort is at a standstill in the legislature. Deion says neither bill addresses the issue of protection and liability.
“There is too much risk to businesses,” he said. “Employers are going to have an issue with this. The concern is: What is the liability for the employer if an employee does something while under the influence.”
Deion believes legislators need more time to consider concerns from the business community.
“There needs to be a cautious and logical approach with the legislation,” he said, noting that it could be a revenue windfall for the state if it’s done right.
Laurie White, president of the Greater Providence Chamber of Commerce, agrees with Deion. She said that no marijuana legislation is a good thing for the business community.
“I don’t think it’s a priority this year for the legislature, and is not going to be moving,” said White.
If it does move to passage, White hopes language is embedded in the legislation that protects employers, allowing them to employ drug testing of their employees.
“The risk to employers in terms of drug testing is a risk that merits watching,” she said. “So, the status quo would be suitable for now.”
So what’s the holdup?
House Speaker K. Joseph Shekarchi said, “The Senate and the governor have two divergent proposals they are trying to reconcile, and we are part of those discussions. There are many pressing matters before us and I don’t know if we’ll take up the issue this year, but there is always time, and we will do our best to address it.”
McKee’s budget proposal released March 11 included a plan to legalize the sale of recreational marijuana to adults through 25 licensed, privately owned retailers. The McKee administration projects the plan industry would bring in $2 million in state revenue in fiscal year 2022, and then increasing in subsequent years, with $17 million projected for 2023.
The Senate’s legislation was drafted by Miller and Senate Majority Leader Michael J. McCaffrey, D-Warwick, at the behest of Senate President Dominick J. Ruggerio.
Both pieces of legislation are entrepreneurial models, unlike former Gov. Gina M. Raimondo’s version, which was a state-run model.
Miller said he is “more optimistic” than the House speaker regarding the legislation and its passage this year. “None of the issues with it would be the type that would put a standstill to finding a compromise,” he said. “They’re all resolvable.”
“Some of the things under discussion are whether the commission needs to be a standalone, or part of the Department of Business Regulation,” said Miller, noting that governance, taxation, and revenue disbursement are the sticking points.
The R.I. Department of Business regulation is the state entity that administers the state’s cannabis policy and program.
The governor is proposing that licenses be governed by a Cannabis Reinvestment Task Force, which would advise on the long-term investment of revenues in the areas of job training, access to capital for small businesses, affordable housing, health equity and community development.
The Senate’s legislation would create a Cannabis Control Commission, similar to what is done in Massachusetts. The commission would be its own division for regulation, similar to the structure of the R.I. Lottery.
Miller said the challenge right now is finding common ground with both pieces of the legislation. He noted that other complicated bills have been passed while going through the same exercise involving negotiations.
Alana O’Hare, spokesperson for McKee, said, “The governor proposed a well-rounded cannabis proposal in his budget that he looks forward to championing as the budget article makes its way through the legislative process.”
Dave Chenevert, executive director of the Rhode Island Manufacturers Association, said the state should take its time in drafting the legislation to ensure that the proper employer protections are in place. The association sent a letter to the General Assembly outlining its concerns about passage of the legislation.
“Taking our time and doing it right is the most important aspect to ensure that our employees are kept safe, and the employers are protect from lawsuits and liability issues” he said.
Chenevert said the association has been asking lawmakers to include testing and employer protections. The main concern, he said, is that companies are able to stay open and operating in a safe manner.
“We have to make sure that the industry has a voice on this,” he said. “I don’t think the legislation is going to die. The more time we spend on it maybe we will get it right, and maybe more so than in other states.”
Adult-use of marijuana has been legalized in 15 states, including Massachusetts, Maine and Vermont.
Cassius Shuman is a PBN staff writer. Contact him at Shuman@PBN.com.
