(a)  On or after December 1, 2022, a compassion center licensed pursuant to the provisions of chapter 28.6 of this title, upon payment to the office of cannabis regulation of an hybrid cannabis retailer fee of one hundred twenty-five thousand dollars ($125,000) to be deposited in the social equity fund, is permitted to sell adult use cannabis pursuant to the provisions of this chapter for a period of one year, subject to the following conditions:

(1)  The compassion center must be in good standing and maintain its compassion center license with the office of cannabis regulation pursuant to the provisions of chapter 28.6 of this title;

(2)  The compassion center shall make good faith efforts to ensure that the sale of cannabis for adult use as a hybrid cannabis retailer has no significant adverse effect on the medical marijuana program and patient needs; and

(3)  The compassion center shall post in a conspicuous place a copy of a certificate of authorization evidencing a license in good standing and payment of the hybrid cannabis retailer fee.

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(b)  During the transitional period specified in § 21-28.11-10.1, hybrid cannabis retailers shall comply with directives of state agencies, departments and offices exercising regulatory authority pursuant to § 21-28.11-10.1(b), and directives provided or issued by the commission to protect public health and public safety. Failure to comply with a rule or directive issued pursuant to provisions of this subsection and § 21-28.11-10.1(b), may result in a revocation or suspension of the authorization to conduct adult use cannabis sales as ordered by the commission or office of cannabis regulation.

(c)  Following the final issuance of the commission’s rules and regulations, hybrid cannabis retailers shall be subject to the commission’s rules and regulations for all sales authorization and renewals to include, but not limited to, any licensing requirements.

(d)  Notwithstanding any other provision of the general laws, a licensed compassion center authorized as a hybrid cannabis retailer pursuant to subsection (a) of this section and the rules and regulations promulgated by the commission shall be exempt from the requirements of chapter 28.6 of this title requiring registration as a not-for-profit corporation under chapter 6 of Title 7, provided the compassion center maintains operation as a hybrid cannabis retailer in good standing with the commission. The commission may promulgate regulations or issue guidance to facilitate the transition from a not-for-profit corporation to a for-profit corporation or other entity, including, but not limited to, the requirement that the compassion center must update and/or resubmit licensing and application documents which reflect this change.

(e)  If the commission has failed to make final issuance of the commission’s rules and regulations after one year from the date the compassion center has paid the fee pursuant to subsection (a) of this section, then hybrid cannabis retailers shall be permitted to continue to engage in adult use cannabis sales upon payment of a monthly fee to the department of business regulation in the amount of ten thousand five hundred dollars ($10,500) for each month of operation following the one-year period provided in subsection (a) of this section. Upon final issuance of the commission’s rules and regulations, hybrid cannabis retailers shall comply with the provisions of the rules and regulations to maintain licensing and authorization to sell adult use cannabis in accordance with § 21-28.11-10.2.

(f)  Notwithstanding any other general law, rule or regulation, after March 1, 2023, and in accordance with a timeline established by the commission, no hybrid cannabis retailer shall be authorized to sell medical marijuana to any patient with an out-of-state medical marijuana card who fails to possess and produce a valid government issued identification demonstrating residency in the same state that issued the medical marijuana card.