Operational Requirements for Cannabis Establishments

Regulation Authority:

R.I. Gen. Laws § 21-28.11-5

Purpose and Reason:

In accordance with the 2022 adoption of the Rhode Island Cannabis Act (“RICA”) (R.I. Gen. Laws Chapter 21-28.11) and the 2022 amendments to the Edward O. Hawkins and Thomas C. Slater Medical Marijuana Act (“Medical Marijuana Act”) (R.I. Gen. Laws Chapter 21-28.6), the Commission has proposed the adoption of 560-RICR-10-10-2 as part of the transition of the cannabis regulatory program from the Department of Business Regulation (“DBR”) to the Commission. 

This regulation establishes standard provisions for the operations of Cannabis Establishments, applying to both existing and future licensees.  

Most of the regulation was built off existing provisions in DBR’s Medical Marijuana Program Regulation, 230-RICR-80-05-1.  DBR’s provisions were modified to incorporate the requirements of the Cannabis Act, update provisions for new license types, and implement policy decisions made by the Commission.  

Below is a summary of the regulation:

§ 2.2, Definitions — New definitions relevant to this regulation were added in addition to cross referencing applicable definitions in the Cannabis Act, the Medical Marijuana Act, and the Commission’s three other proposed regulations. New definitions were added as necessary and include: canopy, embargo, immediate container packaging, outer packaging/secondary container, and trade sample. 

§ 2.3, Incorporated Materials — All the incorporated materials in the DBR regulation § 1.1.7 related to operational provisions have been retained and updated.

§ 2.4, Product Designation — Based on § 1.7 of the DBR regulation, the section was amended to include:

Requirements were updated to apply to both adult use and medical products; 

Removed requirement of preapproval for most products already on designation list, but still allows licensees to seek approval for new product types;

Clarified existing requirement that edible/infused cannabis products may not be in a form that targets or appeals to minors, consistent with changes to the packaging and labeling requirements in §§ 2.6 and 2.7;

In § 2.4.3 and § 2.4.4 clarified prohibited additives to cannabis products;

In § 2.4.6 clarified what products may be labeled as “Medical Use Only”.

§ 2.5, Cannabis Equivalency Table — Updated DBR’s original table located in § 1.4 of the DBR regulation, correcting previously inaccurate conversions and adding equivalent measurements in grams, the standard industry measurement. 

§ 2.6, Packaging Requirements for Retail-Ready Cannabis Products — Licensees will have 90 days to comply with packaging changes. There are three significant changes from § 1.5 of the DBR regulation:

§ 2.6(C), Additional Options for Packaging at Point of Sale — DBR’s medical marijuana regulation in § 1.5.2(A) states that all products must be in “compliant packaging upon entering the compassion center retail space.”  The Commission has updated this requirement in § 2.6(C) to require that all products be in compliant packaging at point of sale. This change reflects the actual operations of existing retail licensees who may display cannabis flower in clear containers so that consumers can see the product and select it at the retail counter. The licensee’s employee can then package the flower at the point of sale in compliant packaging prior to the transfer to the consumer. This change results in a qualitative benefit for licensees. 

§ 2.6(D)(3), Tamper-Evident Packaging — The existing DBR regulations require that cannabis packaging be child resistant.  In addition to retaining that requirement, the Commission has proposed requiring all cannabis products sold at retail locations to be packaged in tamper-evident packaging. Tamper-evident packaging, seals or labels provide visible evidence of a disturbance to the product and ensures quality control. This results in minimal short-term costs to licensees because some packaging will have to be changed, but many existing products are already compliant. This is a cost-effective way to ensure that a product that is ultimately consumed by an adult use consumer or medical patient is not tampered with post-testing and prior to sale.

§ 2.6(D))4), Lessening of packaging color restrictions — DBR’s Medical Marijuana Regulation restricted packaging to be opaque and of neutral colors only. The DBR regulation was originally designed only for the medical market. With the addition of adult use cannabis sales in 2022 following the passage of the RICA, it made sense for the Commission to relax this rule and provide current and future licensees with the opportunity to incorporate additional colors in their packaging, as long as those colors are not fluorescent or neon colors

§ 2.7, Labeling Requirements for Retail-Ready Cannabis Products — Licensees will have 90 days to comply with labeling changes in this section. In general, the existing labeling requirements from the DBR regulation have been adopted and streamlined so they are easier to follow and to reflect the existing practices of licensees. The Commission has made some changes to the status quo, most of which result in simpler procedures, updated requirements and provides licensees with more options in the design of their packaging and labeling.  These include: 

§ 2.7.2(B) — Labels are no longer required to be in black and white, consistent with packaging color changes in § 2.6(D)(4).  Labels are still required to be easy to read and legible, but could be in other colors except for florescent or neon colors.  No changes to the color of text are required but, like the changes for packaging colors, over time licensees could choose to redesign their product’s appearance for marketing purposes and easy identification by consumers. 

§ 2.7.1(C) — Labeling compliance can occur at point of sale (compare with § 2.6(C)), following same reasoning as discussion above under packaging.

§ 2.7.2(G) — with prior approval by the Commission, licensees may use a QR code in addition to the options for inserts, peel-back accordion, or other extendable/expandable labels for some of the required labeling information. This gives licensees more options and could be a cost-savings in the long-term for licensees because they will save on printing and paper costs. This is also better for the environment, generating less consumer waste. This also could be better for consumers; it is easy to lose or throw away an insert, but if the QR code remains on the packaging, the consumer can easily access the information from their phone any time after purchase. 

§ 2.7.2(G)(6) — added language to include sesame to the list of food allergens required to be disclosed on labels. 

In this section, the Commission departed from and did not adopt the following labeling requirements from the DBR regulations:

Logos and graphics no longer must be pre-approved.  Licensees already attest to compliance with the regulation during the application process and all are required to employ a compliance officer.  This streamlines procedures and approval times for licensees, potentially shortening the start-up time for the licensee’s products. 

The prohibition on using images of cannabis, cannabis plants or leaves on packaging was deleted.  This restriction dates to when this was a medical only program.  Given the expanded market with adult use, and the fact that the required universal symbol includes a cannabis leaf, it makes sense for this imagery to be permitted on cannabis product labels, and may even benefit consumers by quickly identifying a product as cannabis.

The following are improvements in this section with minimal costs (i.e., some labels may need to be changed):

§ 2.7.6 — The Commission has streamlined the warning requirements by:

Deleting DBR’s medical requirements for rotating warnings;

Adopting the rotating warning related to the operation of a motor vehicle as a required warning for all products; 

Modified the warning for vaping products consistent with updated scientific findings, § 2.7.6(B)(4)(a);

§ 2.7.6(C) — to account for the removal of rotating warnings, the Commission added an optional requirement that it may require licensees to post additional warnings at the point of sale, which would be created and distributed to licensees by the Commission, in coordination with RIDOH, at no charge. Given the innovative nature of this industry, the Commission here is retaining the option to require additional warnings not on the packaging at the point of sale. This could be used to publicize new scientific findings about existing products or innovation of new products yet to be created that may require additional warnings. This flexibility is good for consumers and comes at no cost to the licensees. 

§ 2.7.2(E) — DBR’s current rules require the packaging to identify only the THC and CBD content. The Commission’s regulation modifies this by requiring the full cannabinoid profile of product (i.e., THC, CBD, CBN, CBG, THCa, etc.) to be listed on the package. This is consistent with industry standards—including Massachusetts’ labeling requirements—and reflects the growth and innovation in the industry over the last few years. 

The Commission has added the following labeling requirements, which may be included on the package or the additional insert, expandable, QR code, etc.:

§ 2.7.2(G)(3) — to allow (but not require) the label to identify whether a product has been remediated and the remediation method used, if applicable;

§ 2.7.2(G)(6) — added sesame to the list of required food allergens to be identified on the label, consistent with federal requirements; 

§ 2.7.2(G)(8) — adds the date that the product passed/had final result of product testing; and

§ 2.7.2(G)(9) — adds that the testing facility that conducted testing on the product must be identified on the label. 

§ 2.8, Advertising — The Commission incorporated the majority of DBR’s existing guidance document – 2024_08_05 Advertising Guidance.pdf, which relaxed many of the original advertising prohibitions in the medical regulation consistent with statutory changes in 2023 that specifically allowed for advertising by compassion centers, and legislation in 2024 that allowed for advertising by hybrid cultivators and hybrid cannabis retailers (compassion centers with hybrid authorization). Changes to the status quo under the guidance document, include:

§ 2.8(B)(2)(a)(i) — Online advertisements may only be visible to those aged 21+;

§ 2.8(B)(4)(i) — Advertising may not be displayed or disseminated within 500 feet of a public or private K-12 school, tracking language applicable to retailer locations in R.I.G.L. § 21-28.11-17.1; 

Added specific provisions for different types of advertising media;

§ 2.8(B)(4)(d) — adds the prohibition of florescent and neon colors in advertising to match packaging and labeling requirements in § 2.6(D)(4); and

§ 2.8(C) — Adds to the existing requirement—that advertising must be targeted to an audience of at least 85% of people being 21 years of age or older—that licensees must provide to the Commission, if requested, reliable and verifiable audience composition data to establish compliance with this requirement. 

§ 2.9, Cannabis Seed-to-Sale Tracking System — Since DBR’s medical regulation was adopted in 2020, the Office of Cannabis Regulation (“OCR”) has obtained and implemented an online seed-to-sale cannabis inventory tracking system through a vendor. The regulatory provisions in § 1.6.1 of the DBR regulations have been updated consistent with the implementation of this system and DBR’s existing guidance document: Metrc Implementation Guidance 2.29.2024 edit.pdf  

§ 2.9(B) identifies additional, up to date information that must be cataloged in the system, including: the identification of a compliance manager, administrators of the system, and permission levels for individuals using the system; requirements for tracking quality control and trade samples; and logging whether a product has been remediated. 

§ 2.10, Tagging of Plants and Cannabis Inventory — Slight modifications to existing requirements in § 1.6.2 of DBR’s regulations to clarify what information is required for compliance with seed to sale tracking system requirements consistent with existing practices and current guidance: Metrc Implementation Guidance 2.29.2024 edit.pdf.  Changes include:

Addition of language regarding external inventory sources to comply with existing practices and mandates in the RICA and MMA;

Trade sample allowance and quality control sample allowance changed from 1 oz. per day per employee/cardholder to 1 oz. (28 grams) per month per employee/ cardholder.

Modification of trade sample and quality control sample cannabis establishment licensee distribution allowance from unlimited distribution per day to up to 1 oz. per day per licensee in §§ 2.10(E)(2)-(3) and 2.10(F)(3)-(4) to match possession limits in the RICA in § 21-28.11-22(a)(1).

Clarification that noncompliant inventory may result in quarantine in § 2.10(G). 

§ 2.11, Permitted and Prohibited Sources of Cannabis; Contract Requirements; Sales and Transfers — the following updates from § 1.6.3 of the DBR regulations were made: 

Existing requirements were modernized and expanded to fit the adult use market and incorporate the new license types created by the RICA; 

Clarified that all permissible transfers between licensees must be pursuant to a formal agreement; prior rule only required a formal agreement for transfers between cultivators and compassion centers;

Inclusion of RICA statutory requirement that out of state patients must show an ID matching the state that issued the patient’s medical card in § 2.11(E)(3).

§ 2.12, Inventory Control —Requirements previously set forth in § 1.6.4 of the DBR regulation are now restructured into different sections for ease of flow and reference.  Changes include:

The content from DBR’s medical reg in § 1.6.4 regarding inventory limits and inventory sources now appears in § 2.11, with no significant changes to status quo. 

Added requirements for display cannabis designated for “display purposes only" in § 2.12(C), which requires that all cannabis displayed at retail locations for display purposes only be securely kept on the retail sales floor, properly tracked in the seed to sale tracking system and be moved off the sales floor and stored securely after hours of operation.

Added requirement for cannabis products designated as “medical use only” in § 2.12(D) and how it should be kept separate from other cannabis and cannabis products. This is a statutory requirement, and these new provisions are necessary given that the Commission is regulating both medical and adult use cannabis. 

§ 2.13, Minimum Security Requirements — No changes to the requirements of § 1.6.5 of the DBR regulations, only modernized existing language to ensure that licensees continue to have compliant video surveillance systems in place as technology evolves and changes. 

§ 2.14, Record Keeping and Reporting — The Commission adopted and made no changes to existing requirements in § 1.6.6 of the DBR regulations.  Section 1.6.12 of the existing DBR regulations was moved to § 2.14(B)(3) with no changes to the status quo. 

§ 2.15, Use on Premises Prohibited — The Commission adopted and made no changes to the existing requirements from § 1.6.7 of the DBR regulations.

§ 2.16, Transportation of Cannabis Products — No changes were made from § 1.6.8 of the DBR regulations.  Regulatory language reflects adoption of existing OCR guidance document requirements that transport vehicles be preapproved and that a copy of the transport manifest be present in the vehicle with the shipment: Metrc Implementation Guidance 2.29.2024 edit.pdf;

§ 2.17, Home Delivery – Licensed Retail Cannabis Establishments Only — This section adopts existing provisions in § 1.6.9 of the DBR regulations, with updates to apply to new cannabis retail licensees and the adult use market. 

§ 2.18, Curbside Pickup – Licensed Cannabis Retailers Only — the regulatory language incorporates language from DBR’s 2024 bulletin—which supersedes the original 2020 bulletin— that cannabis retailers may offer curbside pickup. This practice was created during the COVID-19 pandemic to allow for continued sales during public gathering restrictions and to facilitate ease of access for medical patients and other consumers with mobility limitations. DBR later amended this guidance in 2024 to apply to adult use sales as well: 2024-1_BULLETIN_CC_Limited_Pickup_Procedures Amended.pdf.  The proposed regulatory language does not affect the status quo for existing licensees. 

§ 2.19, Manufacturing and Extraction – Licensed Medical and Hybrid Cannabis Cultivators, Product Manufacturers, and Vertically Integrated Compassion Centers and Hybrid Cannabis Retailers Only — regulatory language adopts § 1.6.10 of the DBR regulations and clarifies which license types may engage in manufacturing based on statutory permissions set in the RICA, with inclusion of new license types. Language added to clarify that non-psychoactive cannabinoids may not be converted into psychoactive cannabinoids in the manufacturing process. 

§ 2.20, Minimum Requirements for Commission Approval of Volatile Solvent-Based Hydrocarbon Extraction Operations — The existing requirements found in DBR regulation 230-RICR-80-05-4 have been incorporated in this section.  Definitions from this DBR regulation were added to § 2.2.  Regulatory language reflects no change in status quo from existing requirements. 

§ 2.21, Required Patient Outreach Activities - Compassion Centers and Hybrid Cannabis Retailers Only — Existing regulatory language in 1.6.11 of the DBR regulation was modified to include hybrid cannabis retailers.  Regulatory language reflects no change in status quo from existing requirements.

§ 2.22, Minimum Sanitation and Workplace Safety Conditions — The Commission adopted and made no changes to the existing requirements in § 1.6.13 of the DBR regulations. 

§ 2.23, Odor Control and Mitigation — The Commission adopted and made no changes to the existing requirements in § 1.6.14 of the DBR regulations.

§ 2.24, Pesticide Use and Records — The Commission adopted and made no changes to the existing requirements in § 1.6.15 of the DBR regulations.

§ 2.25, Safe Destruction and Disposal of Cannabis and Cannabis Waste — The Commission adopted and made no changes to the existing requirements in § 1.6.16 of the DBR regulations.

§ 2.26, Quarantine, Testing, Retesting and Remediation — New regulatory language includes existing policy requiring Department of Labor and Training certification of all scales used in the licensed facility in § 2.26(B). The only significant change to status quo from existing language in § 1.11 of the DBR regulations is an increase in the maximum size of testing batch for cannabis flower from 10 lbs. to 20 lbs. in § 2.26(C), in response to requests from multiple licensees. Under the current DBR regulations, a batch of dried cannabis may not exceed ten (10) lbs. for the purpose of required regulatory testing and may not contain more than one strain, cultivar, or genetic composition.  Pursuant to RIDOH testing regulations, 216-RICR-60-05-6.17(E), testing samples are collected directly by the licensed testing laboratory and each sample collected must be representative of the cannabis in its production batch, and a minimum range of 0.3 – 0.5% of a batch of cannabis plant material is required.  In all cases, the amount of sample collected by the laboratory must be within the range of 0.3 – 0.5% of the batch, large enough and sufficiently homogenized to provide a representative sample of the production batch but not in excess to raise issues with the possibility of diversion or waste disposal. The Commission’s proposed increase to the batch size limit comes after significant research conducted on the issue, which was initially prompted by multiple requests from current licensees.  At several Commission open meetings licensed cultivators expressed that their harvested batches of dried cannabis routinely exceeded ten (10) lbs., which were then treated as two separate batches, each requiring a full panel—and full cost—of testing.  When initially adopted, Rhode Island’s ten (10) lb. batch limit mirrored that of Massachusetts.  Currently, Massachusetts has a fifteen (15) lb. batch limit, and there is a present effort in Massachusetts to increase this limit to a twenty (20) lb. batch size.  Connecticut has an unlimited batch size using a representative sample size, and more onerous testing requirements.  The Commission has conducted research that shows that in adult use states, batch sizes vary greatly, from five (5) lbs. to unlimited.  The industry trend appears to be moving toward unlimited batch sizes, with laboratory testing panel costs instead corresponding to the representative samples taken regardless of batch size.

§ 2.27, Recalls — Content previously contained in existing DBR regulation § 1.11 was moved into separate sections in the Commission’s regulations for streamlining and ease of use and reference.  The regulatory language reflects no changes to existing requirements for licensees.

§ 2.28, Quality Assurance Testing Program — New regulatory language sets forth the new Quality Assurance Testing Program, the goal of which is to provide the Commission with an additional tool to ensure the integrity of laboratory testing results through the retesting of anonymized samples of product that have already gone through state-mandated testing. This program, which the creation of is specifically authorized by the Cannabis Act, R.I. Gen. Laws §§ 21-28.11-5(b)(27)(ii) & (vi), and 21-28.11-11(a), addresses the potential temptation for regulated cannabis laboratories to manipulate testing data to benefit their clients—licensed cannabis growers—which could ultimately endanger public health by allowing cannabis into the market that does not meet regulatory standards for contaminants or is otherwise mislabeled for sale to consumers.  This is of particular concern for the state’s medical cannabis patients, who rely on safe, effective, cannabis products as medicine.  The Commission’s research has shown that manipulation of testing data—which has been documented in cannabis markets throughout the country—could lead to inaccurate labeling of cannabis products, particularly regarding potency results, which risks the ability of the public to make informed decisions regarding cannabis consumption. 

The proposed regulatory language outlines the process for sampling and testing off-the-shelf, retail-ready samples of cannabis and cannabis products.  The regulation provides that the Commission will conduct a random sample collection at least four (4) times per year and limits such sample collection to one (1) time per retail location per calendar year, meaning that no cannabis establishment retailer will be required to provide samples more than once per year. This will not occur at or impact cultivators.  Any costs will be borne by the existing retail licensees and any new retailers licensed under 560-RICR-10-10-1. 

The regulation specifies how collection will occur, including providing licensees twenty-four (24) hours’ notice of sample collection, who will be collecting samples, and, for samplers, which products they will be collecting. The regulation specifically prohibits licensees from being informed of which products will be collected until the arrival of samplers to ensure veracity of the sample.  The regulatory language limits the quantity of each product collected to only the amount necessary for three (3) laboratories to test the product, and for one (1) additional sample to be held in reserve in case retesting is needed.  Three laboratories will then test the sampled products, which will provide points of comparison between laboratories as well as with the initially reported results.  The selected samples will be homogenized and anonymized to reduce potential variance in results and ensure that no laboratory attempts to “match” previously reported results.

The regulatory language requires the Commission to inform laboratories of an imminent sampling event and for labs to collect and test samples within twenty-four (24) hours of the samples being ready for collection from the homogenizing location. It directs laboratories to test samples using the same methods that have been approved and validated by RIDOH and to provide the results of testing, along with any underlying data upon request, to the Commission and RIDOH.  Additionally, it gives the Commission and RIDOH discretion to direct labs to only test for specific analytes, rather than the full panel of analytes required for sale.

Lastly, the regulation authorizes the Commission to take certain actions depending on the results of the testing, including but not limited to, administrative action or mandating a recall of cannabis products if deemed necessary to protect public health or safety. It additionally authorizes the Commission to conduct further investigation into laboratories if there is a reason to believe they have been improperly testing or reporting inaccurate results. 

A public hearing will be held on Friday, January 24, 2025, at 1 p.m. at the Public Utilities Commission, 89 Jefferson Boulevard, Warwick, RI 02886. 

At this hearing public comment will be received in person ONLY.  Anyone wishing to view the livestream of this regulation hearing can join the zoom meeting here:  

https://us02web.zoom.us/j/81856432668?pwd=vEyYedhbKhLKBjtF5Eh0niWMaSimBI.1

Note: All public comments received on any Commission regulation are considered public records and will not be redacted for personal information. If you do not want your personal information to become public, do not include that information with your public comment.