Gov. Gina Raimondo has proposed a plan that could create six more medical marijuana dispensaries in the state while increasing various licensing fees to generate another $1.5 million in general revenue. (Photo courtesy of Gov. Gina Raimondo’s Office)
PROVIDENCE, R.I. — Gov. Gina Raimondo has proposed a plan that could create six more medical marijuana dispensaries in the state while increasing various licensing fees to generate another $1.5 million in general revenue.
The governor submitted the budget amendment on June 9 calling for “no less than six licensed compassion centers” in the state. The existing three centers would each be allowed to operate a second retail-only location, potentially bringing the total number of dispensaries in the state to nine.
The three existing dispensaries in Providence, Warwick and Portsmouth have been fighting a bill to add more such operations, arguing there is no proven need for them. Raimondo’s plan appears to be an attempt at a compromise.
The budget amendment, which came as a surprise to some on Smith Hill, is among a number of last-minute plays related to marijuana taking place as the General Assembly heads into its home stretch.
On Wednesday, hours before a House vote on a bill that would create a study commission on marijuana, legalization forces refused to participate, calling the panel a “flawed delay tactic,” despite lawmakers’ move last week to give them more representation.
The attempt to instead force a vote on a scaled-back version of marijuana legalization legislation failed as the House amended the study commission bill from the floor to delete those who didn’t want to participate. Not a single lawmaker spoke on the bill, which was approved, 67-2.
As for whether or not the House would entertain Raimondo’s proposal for increased dispensaries in the budget expected to be unveiled Thursday, House spokesman Larry Berman said, “Everything is on the table.”
But Senate President Dominick Ruggerio said he wants to see the study commission tackle both medical and recreational marijuana issues. Ruggerio referenced problems with enforcement of the medical program and an “overflowing” black market.
“I don’t think it would be wise at this point in time [to add new] facilities in light of how I feel about how things are being regulated,” Ruggerio said.
Norman Birenbaum, the state’s top pot regulator, said data on dispensary-to-patient ratios “led the administration to ultimately support increasing the number of compassion centers and the supply of regulated medicine.”
According to the state’s data, Rhode Island has the highest number of patients per allowed number of dispensaries of any state. The existing dispensaries have called that data flawed, noting Rhode Island’s unique circumstances, including liberal patient growing laws.
In a letter explaining the amendment, state Budget Officer Thomas A. Mullaney said the new dispensaries would be in “underserved areas where there is limited access to existing centers or to products that satisfy patient needs.”
The amendment also increases the compassion center application fee from $250 to $5,000 and increases annual licensing fees from $5,000 to $25,000.
Meanwhile it eliminates the requirement that compassion centers be nonprofits — often a point of contention for the operations. The three existing compassion centers are state-registered nonprofits, but they cannot be federal nonprofits because marijuana remains illegal.
Of the $1.5 million that would be generated, $603,000 would be in a restricted-receipt account to support the operation of the program.
As for the marijuana study commission, the House approved a 19-member panel that would make recommendations to the General Assembly by March 2018. Spots for the Rhode Island chapter of the NAACP, Doctors for Cannabis Regulation and the local chapter of Direct Action for Rights and Equality were deleted.
