Cannabis & Hemp Stocks Investment Tools – Schedule Demo Now!

In historic vote, Senate passes legislation to legalize, tax, and regulate cannabis in Rhode Island. Proposal aims to create a competitive, inclusive, and equitable regulatory structure

Rhode Island Senate Approves Recreational Marijuana — STATE HOUSE, Providence – The Senate today approved legislation to legalize, tax and regulate cannabis. It is the first time legislation to legalize cannabis for recreational use has reached the floor of either legislative chamber in Rhode Island, marking a major milestone in the decade-plus efforts of the sponsor, Senator Joshua Miller.

CanninPlus Best Cannabis Stocks 2021

Related: What States are Likely to Legalize Marijuana in 2021?

At the request of President of the Senate Dominick J. Ruggerio last fall, Senator Miller and Senate Majority Leader Michael J. McCaffrey worked to craft legislation that creates a comprehensive tax and regulatory structure to legalize cannabis.

The bill, 2021-S-568A, creates a Cannabis Control Commission to oversee a competitive and accessible licensing structure that would generate tax revenue through the state sales tax, a special cannabis sales tax, and a local sales tax which is remitted back to the community where the point of sale occurred.

“Cannabis legalization is a monumental shift in public policy that effectively creates a new economy,” said Senator Miller, who also chairs the Senate Committee on Health and Human Services. “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.”

Best Hemp Stocks 2021 - Cannin Report

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. To prevent monopolization of the new market, no business entity would be allowed to possess more than one license, although an individual can invest in more than one endeavor.

The legislation 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.

“Cannabis legalization is as much about reconciliation as it is revenue,” said Majority Leader 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 legislation 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.

In addition to the three percent local sales tax and the state’s regular sales tax, a cannabis sales tax of 10 percent would apply. Licensing fees range from as low as $100 for a small cultivator’s license, to $5,000 for manufacturers and testing entities’ licenses, and up to $20,000 for the largest cultivators and retailers. New cultivators licenses would be available after July 1, 2023.

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 20,000 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 borders. I’m look forward to continuing to work with my colleagues in government to bring this bill to enactment.”

Added President of the Senate Ruggerio, “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. 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.”

Rhode Island Senate Approves Recreational Marijuana

See related fact sheet below.

# # #
Senate Cannabis Legalization & Regulation Legislation
Revised 2021-S-568 Sub. A
(Revisions in BOLD)

Legal Cannabis

Legalizes cannabis possession under 1 ounce 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.

Past Offenses

There will be a process for expunging marijuana related offenses free of charge, whereby individuals file notice with the court for an expedited review of their record. The process is as close to automatic expungement as practical.

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.
One third of licenses reserved for members of groups who have been disproportionately impacted by past drug prohibition policies.
Supply Chain

Four different types of licenses depending on role in supply chain:

Cultivator: License fee of $100 to $20,000, depending on size and type
Manufacturer: License fee of $5,000
Retail: License fee of $20,000
Testing: License fee of $5,000

Entities will be limited to possessing one license to promote equity, competition, and accountability. However, investors can invest in more than one cannabis business. Communities retain option to opt out.Participating communities would be limited to one retail license for every 20,000 residents above 30,000 residents, with a minimum of three per municipality.
(This reflects an amendment from the original language, which provide for one retail license for every 10,000 residents above 30,000, with a minimum of 3 per municipality.) As an examples, municipalities of 30,000 or fewer residents would be permitted 3 retail licenses under the revised legislation; a community of 50,000 would therefore be permitted 4 retail licenses under the revised legislation; and a community of 70,000 would be permitted 5 retail licenses under the revised legislation.
Moratorium on Cultivators’ licenses until July 1, 2023

For more information, contact:
Greg Pare, Press Secretary for the Senate
State House Room 314
Providence, RI 02903
(401) 276-5558

Rhode Island Senate Approves Recreational Marijuana

About Your Marijuana Stocks Resource

Cannin is your #1 resource for marijuana stocks. Our global team of experts evaluates all emerging marijuana stock investing opportunities. We aggregate hundreds of hours of research and provide tips on the best marijuana stock investments for 2021. 

Use Cannin as your resource for:

Is it too late to invest in marijuana stocks? No! This is the perfect time to invest.

Many market analysts expect the legal marijuana industry will have an annual value exceeding $75 Billion in the next decade. The time to invest in marijuana stocks is now. 

Are you interested in marijuana stocks like Curaleaf, Trulieve, Aurora Cannabis, or Charlotte’s Web,?

Are you looking to buy stock in marijuana companies for 2021? Interested in emerging penny marijuana stocks? Looking for the best Canadian marijuana stocks to invest in? We can help.

Predict price movements of marijuana stocks several hours in advance with our proprietary algorithmic stock trading software.

  • +30% Gains in 2020
  • +49.8% Gains in 2019
  • 108% Backtested since 2012

We’re so confident you’ll love our algotrading marijuana stock signals, we’re willing to give you a one-month risk-free trial to see it for yourself.

Profit from the best marijuana stocks – we’ll show you how at