A proposal to significantly expand Rhode Island’s cannabis equity provisions and alter how marijuana tax revenue is distributed is scheduled for a public hearing and potential vote in the House Corporations Committee on April 8.
Filed by State Representative Leonela Felix alongside nine Democratic cosponsors, House Bill 5829 would make several changes to the state’s existing Cannabis Act. Among the most notable provisions are enhanced protections for applicants with prior marijuana convictions, the creation of a new investment fund for communities harmed by past enforcement, and a revised formula for distributing cannabis tax revenue.
The bill would allow the Cannabis Commission to waive 100% of licensing fees for eligible social equity applicants, and it would restrict how criminal records can be used in denying licenses. For example, a person could no longer be automatically disqualified based on a previous cannabis possession offense, unless the case involved distribution to minors or was found to substantially relate to the license being sought.
In terms of revenue, the bill would split 50% of state cannabis excise tax funds between two new programs: the Social Equity Assistance Fund and the Disproportionately Impacted Areas Investment Fund. The investment fund would support projects such as affordable housing, mental health care, and early childhood education in communities disproportionately affected by past marijuana prohibition.
For the first five years, 75% of the funds would go to the social equity program and 25% to the community investment fund. After that, the revenue would be evenly split between the two in perpetuity.
In addition, the measure calls for detailed annual reporting on diversity in the industry and on how the funds are used.
A vote in committee could take place immediately following the hearing. If approved, the measure would move to the full House for consideration.
