(a)  In consultation with the department of health, the commission shall have authority to promulgate regulations to create and implement all licenses involving cannabis reference testing requirements, including approval of laboratory proficiency programs and proficiency sample providers, quality assurance sample providers, round robin testing and regulations establishing quality control and test standardization, and create and implement additional types and classes of licensed cannabis testing facilities in accordance with regulations promulgated hereunder.

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(b)(1)  The regulations promulgated by the commission shall at a minimum provide for the licensure and oversight of cannabis testing laboratories, and shall establish testing protocols for the sampling, testing and analysis of cannabis, finished cannabis and cannabis products in consultation with the department of health. Such regulations shall be based on the most recent standards as issued by the United States Pharmacopeial Convention and shall address sampling and analysis to characterize the cannabinoid profile and biological and chemical contaminants, including, but not limited to, pesticides, herbicides, plant growth regulators, metals, microbiological contaminants, and residual solvents introduced through cultivation of cannabis plants and post-harvest processing and handling of cannabis, cannabis products and ingredients.

(2)  No cannabis or cannabis product shall be sold or otherwise marketed pursuant to this chapter that has not first been tested by a cannabis testing laboratory and determined to meet the commission’s testing protocols issued pursuant to subsection (a) of this section.

(3)  A licensed cannabis testing laboratory shall transport, store, possess, and test cannabis in compliance with regulations promulgated by the commission. Nothing in this section shall be construed as authorizing a cannabis testing laboratory to transfer or sell cannabis to a consumer. A direct sale or transfer from a cannabis testing laboratory licensee to a consumer is prohibited.

(4)  A cannabis testing laboratory shall report any results indicating contamination to the commission, the department of health and the department of environmental management within forty-eight (48) hours of identification.

(5)  No laboratory agent or employee of a cannabis testing laboratory shall receive direct or indirect financial compensation, other than such reasonable contractual fees to conduct such testing, from any entity for which it is conducting testing pursuant to this chapter.

(6)  No individual who possesses an interest in or is a laboratory agent employed by a cannabis testing laboratory, and no immediate family member of that individual, shall possess an interest in or be employed by a cultivator, product manufacturer or retail cannabis establishment.

(c)  To qualify for issuance of a cannabis testing laboratory license under this section, an applicant shall satisfy all qualifications established by the commission to include, but not be limited to, the following:

(1)  Apply for a license in a manner prescribed by the commission;

(2)  Provide proof that the applicant is twenty-one (21) years of age or older and is a resident of the state;

(3)  Undergo a criminal record background check pursuant to § 21-28.11-12.1 and on any terms established by the commission;

(4)  Provide proof that the applicant is current and in compliance with all obligations for filings and payments for taxes with the division of taxation;

(5)  Provide a nonrefundable application fee as determined by the commission and promulgated by rules and regulations and apply for a testing license from the commission prior to testing, processing or transporting cannabis; and

(6)  Prior to the issuance of any license and for any period of renewal, the applicant shall submit an annual license fee as determined by the commission and promulgated by rules and regulations.

(d)  Cannabis testing laboratories shall be responsible for ensuring the following, as related to laboratory agents:

(1)  A laboratory agent shall be registered with the commission prior to volunteering or working at a cannabis testing laboratory;

(2)  A cannabis testing laboratory shall apply to the commission for a registration document for each affiliated laboratory agent by submitting, at a minimum, the name, address, and date of birth of the laboratory agent;

(3)  A laboratory agent shall undergo a criminal background check pursuant to § 21-28.11-12.1 and on terms established by the commission, prior to volunteering or working at a cannabis testing laboratory. Laboratory agents shall also have a continuing duty to notify the commission of any criminal conviction(s) that occur after the issuance of a registration document. A criminal conviction shall not automatically result in suspension or revocation of registration, but shall be subject to § 21-28.11-12.1; and

(4)  A cannabis testing laboratory shall notify the commission within one business day if a laboratory agent ceases to be associated with the laboratory, and the laboratory agent’s registration document shall be immediately revoked.

(e)  A cannabis testing laboratory and all agents and employees shall comply with all rules adopted by the commission and all applicable laws.

(f)  As a condition of licensing and pursuant to the provisions of § 21-28.11-20, cannabis testing laboratories shall consent and be subject to inspection by the commission or personnel designated by the commission for the purposes of ensuring and enforcing compliance with this chapter and all rules and regulations promulgated pursuant to this chapter, to include, but not be limited to, the provisions of chapter 5 of Title 28 (the “fair employment practices act”).

(g)  Persons issued cannabis testing laboratory licenses shall be subject to the following:

(1)  A licensed cannabis testing laboratory shall notify and request approval from the commission of any change in his or her name or address within ten (10) days of the change. A licensed cannabis testing laboratory who fails to notify the commission of any of these changes shall be subject to an administrative fine of no more than one hundred fifty dollars ($150) or other penalty as determined by the commission.

(2)  When a licensed cannabis testing laboratory notifies the commission of any changes listed in this subsection, the commission shall issue the licensed cannabis testing laboratory a new registry identification document after the department approves the changes and receives from the licensee payment of a fee specified in regulation.

(3)  If a licensed cannabis testing laboratory loses his or her license document, he or she shall notify the commission and submit a fee specified in regulation not to exceed the amount of one hundred dollars ($100), within ten (10) days of losing the license document. The commission shall issue a new license with a new random identification number.

(4)  A licensed cannabis testing laboratory has a continuing duty to notify the commission of any criminal conviction(s) of a laboratory licensee or agent that occurs after the issuance of a license or registration. A criminal conviction relating solely to a cannabis offense shall not automatically result in suspension or revocation of a license, but shall be subject to § 21-28.11-12.1.

(5)  If a licensed cannabis testing laboratory violates any provision of this chapter or regulations promulgated hereunder as determined by the commission, his or her issued license may be suspended and/or revoked.

(h)   Immunity.

(1)  No licensed cannabis testing laboratory licensee or agent shall be subject to: arrest; prosecution; search or seizure, except as authorized pursuant to § 21-28.11-20 and § 21-28.11-27 and by subsection (f) of this section; or penalty in any manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business, occupational, or professional licensing board or entity, solely for acting in accordance with this chapter, chapter 28.6 of this title and the rules and regulations promulgated by the commission.

(2)  No principal officers, board members, agents, volunteers, or employees of a licensed cannabis testing laboratory shall be subject to arrest; prosecution; search or seizure, except as authorized pursuant to § 21-28.11-20 and § 21-28.11-27 and by subsection (f) of this section; or penalty in any manner, or denied any right or privilege, including, but not limited to, civil penalty or disciplinary action by a business, occupational, or professional licensing board or entity, solely for working for or with a licensed cannabis cultivator to engage in acts permitted by this chapter, chapter 28.6 of this title and the rules and regulations promulgated by the commission.

(3)  No state employee or commission member shall be subject to arrest; prosecution; search or seizure, except as authorized pursuant to § 21-28.11-20 and § 21-28.11-27 and by subsection (f) of this section; or penalty in any manner, or denied any right or privilege, including, but not limited to, civil penalty, disciplinary action, termination, or loss of employee or pension benefits, for any and all conduct that occurs within the scope of his or her employment regarding the administration, execution, and/or enforcement of this chapter, chapter 28.6 of this title and the rules and regulations promulgated by the commission. The provisions of § 9-31-8 and § 9-31-9 shall be applicable to this section.