PRESS STATEMENT

RHODE ISLAND CANNABIS ASSOCIATION

The Rhode Island Cannabis Association had been cautiously following the media reports

that the General Assembly planned to derail the proposed Medical Marijuana Rules and

Regulations that were promulgated by the Department of Business Regulation over the past few

months in accordance with the Administrative Procedures Act. Today, we reviewed House 7013

and Senate 2006 with much disappointment and dismay. We, as Rhode Island cannabis industry

professionals, feel betrayed and neglected by our elected officials.

While we have not been in communication with the Leadership of the House and Senate,

our members were able to testify at the Public Hearing held by the DBR and feel confident that

our voices were heard and our concerns were taken into consideration by the Regulators. It was

always our hope that our elected officials in the General Assembly would also take into

consideration the concerns of the hard working small business owners in the State who have

invested millions of dollars in our local cannabis industry and employ hundreds of Rhode

Islanders before they quickly passed legislation that may destroy us, and reward out of state

cannabis companies.

While we support the removal of the language requiring General Assembly approval of the

DBR Rules and Regulations, our concerns with the proposed legislation are as follows:

The legislation eliminates the six geographical zones proposed by DBR. The intent of the
additional centers was to increase patient access by placing new retail in underserved areas
and also to spread out the existing footprint of Compassion Centers across the state. By
eliminating the geographical zone scheme proposed by DBR, all six Compassion Centers
could be located in one municipality, and perhaps an area already serviced by an existing
Center. This approach serves no one and actually harms the patients located in the
 underserved areas of the state.

The legislation allows for unlimited cultivation of medical marijuana by the new
Compassion Centers and lifts the existing limits for Compassion Centers and Cultivators in
the State. It is well established that the existing licensed cultivator footprint in the State is
well in excess of the patient demand, which includes three Compassion Centers and fifty-
one licensed cultivators. It is confounding that the General Assembly would allow for
unlimited cultivation, yet suggest that they would not consider a recreational marijuana bill
in this Session. Just last Session the Senate proposed legislation which disallowed any new
Centers from cultivation. Why the change? This expansion will only put small businesses
out, bring “Big Cannabis” in and contribute to the Black Market in the State.

The legislation disallows any requirement of a market analysis prior to allowing new
Compassion Centers and cultivators to expand cultivation. The General Assembly has
always looked towards “study commissions” and empirical evidence to make a
determination on the prudent way to proceed in other areas. Why would they shun a market
demand assessment in a highly regulated industry? Adding an increased cultivation footprint
at this time will have a negative two-fold impact on existing Compassion Centers, licensed
cultivators and ancillary small businesses. The huge oversupply of medical marijuana will
put existing licensed cultivators and manufactures out of business and invite an increase of
available black market medicine.

DATE: January 9, 2019

FROM: Katie Sokol Ratkiewicz

President