(a)  In addition to the hybrid cannabis retailer certificates that may be issued pursuant to the provisions of this chapter, after issuance of the final rules and regulations, the commission may grant twenty-four (24) retail licenses, subject to the following restrictions:

(1)  The retail licenses shall be issued pursuant to geographic zones as specified in § 21-28.11-10.3.

(2)  No more than four (4) retail licenses exclusive of any hybrid cannabis retail certificate shall be permitted in each geographic zone; and

(3)  Of the four (4) retail licenses in each geographic zone:

(i)  One shall be reserved for a workers’ cooperative applicant; and

(ii)  One shall be reserved for a social equity applicant.

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(b)   Minimum qualifications. To qualify for issuance of a cannabis retail sales 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)  Demonstrate that the proposed location for the retail sale of cannabis complies with provisions of municipal zoning and regulations or has been approved by the municipality;

(6)  Paid a nonrefundable application fee as determined by the commission and promulgated by rules and regulations; and

(7)  Prior to issuance of any license and for any period of renewal, the applicant shall pay an annual fee of thirty thousand dollars ($30,000) to be deposited in the social equity fund established in § 21-28.11-31.

(c)   Compliance. A cannabis retail sales licensee and all agents and employees shall comply with all rules adopted by the commission and all applicable laws to include, but not limited to, chapter 5 of Title 28 (the “fair employment practices act”).

(d)   Inspection. As a condition of licensing and pursuant to § 21-28.11-20, cannabis retailers shall consent and be subject to inspections by the commission or designated personnel for the purposes of ensuring and enforcing compliance with this chapter, all rules and regulations promulgated pursuant to this chapter and all other applicable law, to include, but not be limited to, the provisions of title 44 (“taxation”), chapter 28 of this title (the “uniform controlled substance act”), and chapter 5 of Title 28 (the “fair employment practices act”).

(e)   Testing. No cannabis or cannabis product shall be sold or otherwise marketed pursuant to this chapter that has not first been collected and tested by a cannabis testing laboratory and found to meet the testing protocols issued pursuant to regulations promulgated by the department of health and determined to meet the commission’s testing protocols issued pursuant to § 21-28.11-11.

(f)   Minimum requirements. Persons issued cannabis retail licenses shall be subject to the following:

(1)  A licensed cannabis retailer 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 retailer 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 retailer notifies the commission of any changes listed in this subsection, the commission shall issue the licensed cannabis retailer a new license identification document after the commission approves the changes and receives from the licensee payment of a fee specified in regulation;

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

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

(5)  If a licensed cannabis retailer 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.

(g)   Immunity.

(1)  No licensed cannabis retailer 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 (d) 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 and rules and regulations promulgated by the commission.

(2)  No principal officers, board members, agents, volunteers, or employees of a licensed cannabis retailer 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 (d) 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 retailer to engage in acts permitted by this chapter and 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 (d) 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 and rules and regulations promulgated by the commission, and the provisions of § 9-31-8 and § 9-31-9 shall be applicable to this section.