PROVIDENCE – The Senate Committee on the Judiciary voted in favor of passing amended legislation that would legalize, tax, and regulate cannabis in the Ocean State in a vote of 6-2 on Monday. The legislation now passes to the floor for a vote.
The legislation, co-sponsored by Sen. Joshua Miller, D-Cranston, and Sen, Michael J. McCaffrey, D-Warwick, is one of three proposals circulating in the R.I. General Assembly. Gov. Daniel J. McKee introduced legalization in his budget proposal in March, while Rep. Scott A. Slater, D-Providence, introduced his own cannabis legislation in the House on May 27.
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When asked about the amended Senate proposal, the governor’s office said that McKee prefers his own legislation. “As the governor has said, he would like to see his proposal on cannabis legislation in the final budget this year,” said Press Secretary Alana O’Hare to PBN Monday.
The Senate’s legislation calls for a 20% tax, including a 3% local sales tax, the state’s 7% sales tax, a cannabis sales tax of 10%. Licensing fees would range from $100 for a small cultivator’s license, to $5,000 for manufacturers and testing entities, and up to $20,000 for large cultivators and retailers.
The bill would create a five-member, full-time Cannabis Control Commission board tasked with overseeing the licensing of four aspects of the cannabis supply chain: cultivation, manufacturing, retail, and testing. The commission would establish rules and regulations for the state’s cannabis market.
It would legalize possession of up to one ounce of marijuana by individuals over the age of 21, and provides for homegrown rules 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.
The amendment legislation caps retail licenses at one license per 20,000 residents per municipality instead of 10,000 residents. Each of the state’s municipalities would be eligible for at least three retail licenses.
The amendment also reserves at least one-third of all licenses for members of groups that have been historically disproportionately harmed by previous enforcement of drug laws. It places a moratorium on cultivator licenses until July 1, 2023.
While cities and towns would have the opportunity to opt-out through voter referendums, in doing so they would forgo collection of the 3% local tax at point of sale. Municipalities could enact local ordinances to regulate time, place, and manner of cannabis operators; however, they would not be able to impose additional fees or contingencies.
Sen. Miller told the Providence Business News that he feels the legislation is bringing the governor’s proposal and the House’s version of the bill on the path to a potential unified piece of legislation.
“I think we’re closer because we have included [in the amended legislation] what we heard from the governor’s office and the House, advocates, and other senators, to have a bill that can pass,” said Miller. “There are so few outstanding issues where we differ.”
Miller has said those issues include expungements of marijuana-related convictions, revenue disbursement, the amount of retail sales licenses, oversight and governance issues.
Miller said he doesn’t think the governor has had time to review the Senate’s amended legislation but he also said that he did not foresee any impediments to reaching agreement with the governor’s office and the House on a unified piece of legislation.
“We can pass it now,” said Miller. “If they want to spend a few hours working through what is different.”
Miller said there doesn’t need to be any changes to the legislation in the Senate, and it is good enough to pass. “We will stick to our guns, because we think we have legislation that is very comprehensive, and complete,” he said.
Miller said there is enough time to either pass the legislation by June 30, when the legislative session ends, or during fall session when the assembly takes up unfinished business.
“I’m confident it will get done in the fall,” said Miller. “But there is no reason that it can’t get done now.”
Updated to include results of the vote from the Senate Committee on the Judiciary.
Cassius Shuman is a PBN staff writer. Contact him at Shuman@PBN.com.
