230 R.I. Code R. 230-RICR-80-05-1.8

Current through November 7, 2024

Section 230-RICR-80-05-1.8 - Cooperative Cultivation

A. Authority

1. Pursuant to R.I. Gen. Laws § 21-28.6-14(d), except as to cooperative cultivator licenses issued by DBR before July 1, 2019, DBR shall no longer accept applications or renewals for licensed cooperative cultivations and cooperative cultivations shall no longer be permitted.

2. Pursuant to R.I. Gen. Laws § 21-28.6-14(a)(10), DBR is charged with promulgating regulations governing the licensing, renewal and operation of cooperative cultivations, and may promulgate regulations that set a fee for a cooperative cultivation license and renewal.

B. License Required

1. Pursuant to R.I. Gen. Laws § 21-28.6-14(c), no person or entity shall engage in activities described in R.I. Gen. Laws § 21-28.6-14 and § 1.8 of this Part without a cooperative cultivation license issued by DBR.

C. "Member" Requirements, Compliance and Restrictions

1. All "members" of a licensed cooperative cultivation must be listed on the application and approved by DBR.

2. No person other than a "member" may participate in the management or operation of the cooperative cultivation or exert any direct or indirect authority over the management or operations of the cooperative cultivation.

3. The person identified as the primary applicant and the designee of the licensed cooperative cultivation shall be responsible for the verification that each member of the cooperative cultivation is the holder of a valid and active qualified patient or primary caregiver registry identification card. This includes keeping on the premise copies of the qualified patient or primary caregiver cardholder cards printed for the most recent renewal period.

4. If the cooperative cultivation organizes as a legal entity, then all directors/officers and managers/members must be "members" of the cooperative cultivation as defined in § 1.8(C) of this Part.

5. No "member" of a licensed cooperative cultivation may grow medical marijuana at any location other than the licensed cooperative cultivation premises. R.I. Gen. Laws § 21-28.6-4(r).

6. Licensed cooperative cultivations must be organized and operated in a manner to ensure compliance with all relevant state and local laws and regulations and to safeguard against diversion of marijuana to illicit markets.

D. Application and Renewal Fees

1. There shall be a non-refundable application fee of fifty dollars ($50) for initial cooperative cultivation license applications.

2. The annual license fee for cooperative cultivations shall be five hundred dollars ($500).

3. The annual license fee shall be in addition to the individual qualifying patient and primary caregiver registration fees and medical marijuana plant tag certificate fees.

E. Application Requirements

1. Each initial application for a cooperative cultivation license shall be on such forms and through such submission mechanisms as designated by DBR and shall include:

a. The signature of the individual identified as being primarily responsible for the license ("primary applicant") and one designee.

b. A list of the legal name of each qualified patient cardholder and/or primary caregiver cardholder that is or will be a member of the cooperative cultivation and for each such person, their DOH/DBR registry identification card number, date of birth, a mailing address and phone and/or e-mail address at which they can be best reached.

c. If the cooperative cultivation chooses to be organized as a legal entity for legal purposes without the intent of generating profit, the cooperative cultivation must also provide the following information regarding any such legal entity:

(1) Legal and any d/b/a name(s), certificate of incorporation or organization in Rhode Island or certificate of authority to transact business in Rhode Island, articles of incorporation or organization, and bylaws or operating agreement.

(2) The legal name, DOH registry identification card number, date of birth, of any and all directors/officers or managers/members of the cooperative cultivation, including a mailing address and phone and/or e-mail address at which they can be best reached.

d. Tax Affidavit in accordance with R.I. Gen. Laws § 5-76-1 et seq. filled out by the "primary applicant" or legal entity who will hold the license, if approved.

e. Evidence of compliance with location-specific initial application requirements and security plan requirement as detailed in §§ 1.8(F) (5) and 1.8(G) of this Part, respectively.

2. Only initial applications which DBR has determined to be complete (i.e., adequately address all application requirements above) shall be eligible for review. A primary applicant who submits an incomplete initial application shall receive written notification from DBR regarding the specific deficiencies and shall be allowed to resubmit additional material to address these deficiencies within a reasonable timeframe.

3. When a primary applicant for a licensed cooperative cultivation is notified that the application has been approved by DBR, he or she shall complete the below steps before a license authorizing operation of cooperative cultivation will be issued:

a. Pay the annual license fee set forth in § 1.8(D) of this Part.

b. Provide any updates to previously submitted application information.

c. Provide evidence of compliance with final location-specific application requirements as detailed in § 1.8(F)(6) of this Part.

d. Provide a copy of the security plan as required by § 1.8(G) of this Part.

e. Provide evidence of completion of divestiture plan pursuant to § 1.8(H) of this Part.

F. Location Restrictions and Location-Specific Application Requirements

1. Pursuant to R.I. Gen. Laws § 21-28.6-14(a)(3), a single structural building may only have one cooperative cultivation operating in it. This precludes a structural building with multiple units from having more than one unit with a cooperative cultivation operating in it, unless a single cooperative cultivation has been approved by DBR to occupy two or more connected units provided any such approved occupation of multiple units does not increase the applicable medical marijuana possession limits.

2. Cooperative cultivation licenses will only be issued for "secure indoor facilities." The secure indoor facility shall satisfy the following parameters:

a. Enclosed area with four walls and a roof.

b. Equipped with locks and any other appropriate security devices that limit access to the members of the cooperative cultivation. Locks and devices must be sufficient to discourage theft, unauthorized entrance, and access by persons under twenty-one (21) years of age.

c. Marijuana is not visible from the street or other public areas. See R.I. Gen. Laws § 21-28.6-14(a)(4).

3. Pursuant to R.I. Gen. Laws § 21-28.6-14(a)(7)(i), a licensed cooperative cultivation must have displayed prominently on the premises documentation from the municipality where the single location is located that the location and the cultivation has been inspected by the municipal building and/or zoning official and the municipal fire department and is in compliance with any applicable state or municipal housing and zoning codes.

4. Pursuant to R.I. Gen. Laws § 21-28.6-14(a)(8), a licensed cooperative cultivation must report the location of the licensed cooperative cultivation to RISP. Cooperative cultivation licensees and applicants may designate DBR to report the location to RISP on their behalf through the application process. If the cooperative cultivation licensee or applicant will self-report, DBR will verify with RISP that they did in fact correctly report the cooperative cultivation location. This reporting shall be made before a cooperative cultivation license is issued.

5. Location-Specific Initial Application Requirements. In order to enable DBR to ascertain compliance with the above location restrictions, the initial application for the cooperative cultivation license must contain the following information regarding the proposed physical location for the cooperative cultivation licensed premises:

a. A sufficient description of the location (by plat and lot number, mailing address, etc.).

b. A description of objective parameters (such as approximate distances from streets and public areas) and/or proposed measures (such as black-out window shades) that ensure that marijuana at the premises shall not be visible from the street or other public areas.

c. Evidence of either ownership of property by the primary applicant person or legal entity applicant (as applicable) or any qualified patient or primary caregiver cardholder that has been listed as associated with the cooperative cultivation applying for the license, or agreement by owner of property to allow the operation of a licensed cooperative cultivation on the property.

6. Location-Specific Final Application Requirements: If an applicant for a licensed cooperative cultivation is notified that the application has been approved by DBR, it shall complete the below steps before a license authorizing operation of cooperative cultivation will be issued:

a. Documentation from the municipal building and/or zoning official and the municipal fire department indicating that the location and the cultivation (if the cultivation predates the licensing requirement) has been inspected by and is in compliance with any applicable state or municipal housing and zoning codes.

b. A draft diagram of the premises, including where within the facility the medical marijuana will be grown, stored, and processed, and showing the location of the facility relative to streets and other public areas.

c. Provide any updates to previously submitted application information regarding the location.

d. Contact DBR to coordinate the pre-license DBR inspection. Nothing in this paragraph should be construed as limiting inspections at an earlier time in addition to the final pre-license inspection.

G. Security Plan Requirements

1. Cooperative cultivation license applicants must submit and approved licensees must maintain a security plan that includes but is not limited to.

a. Security and safety measures (such as locks and lighting) shall be sufficiently designed to deter and prevent theft of marijuana.

b. Include an emergency plan component with procedures to be followed to prevent and, if not prevented, to adequately address and mitigate consequences of theft or burglary or attempts thereof, fire, natural disasters, and other emergencies.

c. Prohibits the use or carry of firearms on the premises and/or perimeter of the cooperative cultivation and ensures that it is a prohibited form of security, except by security guards licensed by the Office of the Rhode Island Attorney General pursuant to R.I. Gen. Laws Chapter 5-5.1 and who are under written contract to provide security services to the cooperative cultivation and by law enforcement personnel during duty.

H. Divestiture of Prohibited Material Financial Interest and Control

1. A licensed cooperative cultivation and interest holders/key persons thereof may not have any "material financial interest or control" in another licensed cooperative cultivation, a compassion center, or a licensed cultivator or vice versa. R.I. Gen. Laws § 21-28.6-14(a)(10).

2. If a licensed cooperative cultivation application is approved and any prohibited material financial interest or control has been identified by DBR or is otherwise known to the applicant, such interest or control must be divested prior to issuance of the cooperative cultivation license. The plan of divestiture shall be filed with DBR.

3. The duty to divest prohibited material financial interests and control is a continuing obligation of licensure.

4. The applicant/licensee has a continuing obligation to disclose any changes and shall provide written notice to DBR within thirty (30) days of any change of the information provided.

I. DBR Approved Changes in Licensed Premises, Activities, Ownership and Control

1. The following changes related to a licensed cooperative cultivation must be pre-approved by DBR.

a. A licensed cooperative cultivation shall provide DBR with a written request seeking approval at least ten (10) business days prior to the proposed effective date of any disassociation of a member from the licensed cooperative cultivation.

b. A licensed cooperative cultivation shall provide DBR with a written request seeking approval at least sixty (60) calendar days prior to the proposed effective date of the any of the following changes:

(1) There is a proposed new member of the licensed cooperative cultivation.

(2) If organized as a legal entity, any change in such legal entity's organization (e.g. change in legal form from corporation to limited liability company, change in the board of directors for corporation, change in managers/members for limited liability companies, etc.).

(3) Any request for change in the licensed and inspected location.

2. For updates in information other than the categories requiring the above delineated prior notice, the licensed cooperative cultivation has a continuing obligation to update, amend and/or correct any information requested and/or submitted in the application process within ten (10) business days of any change in the information submitted and/or any material change in circumstances related to the application.

3. Requests for change in the licensed and inspected location for the cooperative cultivation are subject to the location-specific application requirements set forth in § 1.8(F) of this Part and no move may take place unless the request is approved by DBR after satisfaction of those application requirements. If a move is approved, DBR will provide specific instructions for movement of medical marijuana, which may involve consultation with law enforcement.

J. Possession Limits

1. Marijuana plants possessed by a licensed cooperative cultivation are limited to the number of plants that are properly tagged in compliance with all provisions of § 1.12 of this Part and as specifically capped in accordance with § 1.12 of this Part.

2. Possession of usable marijuana by a licensed cooperative cultivation is limited to the lesser of:

a. Ten (10) ounces of dried usable marijuana as capped by R.I. Gen. Laws § 21-28.6-14(a)(6)(i), or its equivalent; or

b. The aggregate total maximum amount of dried marijuana or its equivalent that all members of the licensed cooperative cultivation are permitted to possess pursuant to R.I. Gen. Laws §§ 21-28.6-4(a), (f), and (p).

K. Odor Control and Mitigation

1. Licensed cooperative cultivations shall take any and all reasonable efforts to prevent marijuana plant odors from exiting the interior of the approved structure to an extent that would significantly alter the environmental odor outside. For example, such reasonable efforts may include ventilation and filtration systems.

L. Manufacturing

1. Licensed cooperative cultivations, qualified patient cardholders and primary caregiver cardholders are prohibited from engaging in the manufacture of marijuana products using a solvent extraction process that includes the use of a compressed, flammable gas as a solvent. R.I. Gen. Laws § 21-28.6-4(t).

2. Any other manufacturing method must be approved by DBR. If the manufacturing method uses a flammable/combustible material or heat source, the method must also be approved by the State Fire Marshal and/or local fire department. The licensed cooperative cultivation must provide any information and documentation as required to consider any such requests for approval.

M. Safe Disposal of Marijuana and Marijuana Waste

1. Licensed cooperative cultivators must comply with the safe disposal requirements set forth in §1.6.16 of this Part.

N. Prohibited Sales and Transfers

1. A licensed cooperative cultivator, qualifying patient cardholder or primary caregiver is prohibited from selling, giving, or distributing marijuana to any person or entity including a compassion center. R.I. Gen. Laws §§ 21-28.6-4(c) and (i).

2. The transfer of medical marijuana and medical marijuana products for consideration by the licensed cooperative cultivation or any of its members is strictly limited to transfer amongst members of that cooperative cultivation and to transfer by caregiver members to their associated patients.

O. Documentation Required to be Posted on the Premises

1. Pursuant to R.I. Gen. Laws § 21-28.6-14(a)(6)(iii), the cooperative cultivation license issued by DBR must be displayed prominently on the premises. The license displayed shall be the document printed for the most recent renewal period.

a. "Displayed prominently" shall be deemed satisfied by posting the documentation on a wall with clear visibility and access within or immediately outside the premises.

2. Pursuant to R.I. Gen. Laws § 21-28.6-14(a)(5), each member of the licensed cooperative cultivation shall sign a written acknowledgement of the limitations of the right to use and possess marijuana for medical purposes in Rhode Island. Said acknowledgment shall be on such forms as directed by DBR. This documentation must be displayed prominently in the cooperative cultivation premises.

3. Pursuant to R.I. Gen. Laws § 21-28.6-14(a)(7)(i), a licensed cooperative cultivation must have the municipal inspection/compliance documentation (as further described in § 1.8(F)(4) of this Part) displayed prominently on the premises.

P. Documentation Required to be Maintained on the Licensed Premises

1. A licensed cooperative cultivation shall maintain records and document:

a. All actual costs of goods, materials, services or utilities for which they have incurred expenses while licensed;

b. All reimbursements, contributions, or considerations received;

c. The amount of medical marijuana plant material cultivated, harvested, and/or manufactured through the course of their cooperative cultivation activities; and d. A transfer log which must include the amount of medical marijuana supplied and transferred, the date of each transfer and the reimbursement amount the cooperative cultivation received. Each transfer must be initialed and dated by the receiving member.

Q. Medical Marijuana Plant Tag Certificate Procedures Upon Termination of License

1. Whether by voluntary dissolution and surrender of license or by revocation of the license by DBR, all members of the cooperative cultivation shall comply with the procedures for returning plant tag certificates set forth in § 1.12(J) of this Part.

230 R.I. Code R. 230-RICR-80-05-1.8

Amended effective 3/25/2020