Battle Between Raimondo and Mattiello Over Compassion Centers Takes a New Turn

Rhode Island Speaker of the House Nicholas Mattiello and Senate President Dominick Ruggerio are filing new legislation on compassion center licensing statutes and regulations.

The move is part of an ongoing battle focused primarily between Rhode Island Governor Gina Raimondo and Mattiello over control of the emerging marijuana industry in Rhode Island.

In October, Raimondo announced that she filed a lawsuit seeking a declaration from the Superior Court that provisions of Article 15 of the FY20 Budget requiring legislative approval of marijuana and hemp regulations are unconstitutional.

In her statement when filing the suit, Raimondo claimed the separation of powers violation opened the door for "inside dealing."

The suit by Raimondo alleges that the General Assembly violated the constitutional guarantee of Separation of Powers by giving itself the right to veto – and thereby control – executive regulations governing marijuana and hemp.

Her objection to the unprecedented legislative power grab was supported by John Marion of Common Cause RI.

“We believe this is an unconstitutional power-grab on the part of the House of Representatives. GoLocal's reporting raises important questions about the motives behind that legislation,” Marion told GoLocal in October. GoLocal had reported in October that a Mattiello top staffer had an ownership interest in a hemp company at the time of the legislative change.

The law now reads, “The department [DBR] may adopt rules and regulations based on federal law provided those rules and regulations are designed to comply with federal guidance and mitigate federal enforcement against the licenses issued under this chapter. All new and revised rules and regulations promulgated by the department of business regulation and/or the department of health pursuant to this chapter shall be subject to approval by the general assembly prior to enactment.”

The requirement of final approval of the department’s regulation is precedent-setting in Rhode Island.

View Larger +

Mattiello's Deputy Chief of Staff Grant Pilkington is an owner in American Standard Hemp — a company whose other “key officers” include some of the most influential and powerful players in the Rhode Island State House -- and Common Cause raised concerns about potential conflicts.

“Pilkington's ownership stake in American Standard Hemp raises numerous red flags. In June the House of Representatives passed significant changes to the Hemp Growth Act as part of the state budget,” Marion told GoLocal in October.

Pilkington has had a meteoric rise in Mattiello’s office. In the 2016 campaign, Pilkington was a paid campaign worker of Mattiello earning $6,824 over a six month period.

Around January 1, 2017, he joined the Mattiello State House office as a staffer. State records show he is now paid $88,000 and has risen to Deputy Chief of Staff.

“If Mr. Pilkington was involved in any way with that legislation it could very well represent a conflict of interest given his ownership stake. It raises greater suspicions because the House inserted language in this year's budget that allows the General Assembly to veto any regulations issued by the Department of Business Regulations with regard to the Hemp Growth Act,” said Marion.

Mattiello and Ruggerio's New Legislation

The new Mattiello and Ruggerio bill will also address the lawsuit filed by the executive branch this fall -- but in a new structure, tries to give the legislature new powers to circumvent regulations that have been drafted by the Department of Business Regulation.

“The legislation introduced today fulfills the General Assembly’s pledge to repeal language contained in FY 2020 budget which required legislators to approve rules and regulations relating to the expansion of compassion center licenses. The General Assembly has done what it promised to do,” said Mattiello.

“The proposed regulations would implement limits on compassion centers, some of which were initially proposed by the administration in legislation last year, were thoroughly vetted by the Assembly, and were rejected on their merits. We didn’t punt those decisions to regulators; we decided, after due consideration, they did not create the kind of fair and appropriate system Rhode Islanders deserve,” said Ruggerio.

The legislation will also address the “assertion” by legislative leaders that the regulations that were proposed by the executive branch, in fact, constitute a separate breach of the separation of powers by overstepping the authority granted to regulators under the law.

Mattiello added, “The fact remains that the Department of Business Regulations’ proposed regulations, which must comply with the legislation, represents a blatant overreach by the executive branch. Our bill clarifies the regulatory powers granted to the executive branch regarding the expansion of compassion center licenses.”

Mattiello and Ruggerio’s bill will be given consideration by legislators early in the session

The Bill

The new legislation amends the law passed last year to allow the licensing of six new compassion centers and increase the licensing fee to $500,000 each, removing a provision that required the Assembly to approve resulting regulations developed by the executive branch.

The bill adds four provisions clarifying intended regulatory limits. Under the legislation, regulators would not be allowed to:

limit centers based on geographical zones;

prevent any center from growing its own supply of medical marijuana or limit by regulation the number of plants, seedlings or marijuana it may have;

require a market demand for new compassion centers to cultivate;

lower the limit on the number of patients that licensed primary caregivers are allowed to assist.

Related Slideshow: 5 Big Challenges Facing Speaker Mattiello in 2020

View Larger + Prev Next Britt Factor According to court documents filed by the Rhode Island Attorney General, Mattiello and his political infrastructure are all on the potential witness list in the state’s case against Mattiello’s consultant Jeff Britt, which is now scheduled to begin on March 10, 2020. Britt was charged by the Rhode Island Attorney General in October for a felony money laundering charge, which carries a sentence of up to 20 years, as well as lesser charges. Besides Mattiello, other potential witnesses are Mattiello Chief-of-Staff Leo Skenyon, who heads the list along with former top Mattiello staffer Matt Jerzyk, of those who may be called to testify GoLocal unveiled in October that Jerzyk and Grant Pilkington, Deputy Chief to Speaker Mattiello are business partners in a hemp company. According to state records, Pilkington earns more than $88,000 a year at the State House. Other potential witnesses include: - Mattiello Spokesman Larry Berman - Now Senate aide and then-Mattiello aide Jake Bissaillon - Mattiello consultant Ed Cotugno, who worked on the 2016 campaign. His son is a staffer to Mattiello. View Larger + Prev Next Raimondo Wants to Revisit Car Tax Repeal Governor Gina Raimondo has put Mattiello's top legislative accomplishment -- the repeal of the car tax -- back on the table. Mattiello, however, made clear on Tuesday he wants to protect his priority. At the opening of the session, Mattiello said, "I am committed to the elimination of the car tax, and I fully expect the funding for the fourth year of the six-year phase-out will be enacted according to schedule this spring. Our constituents deserve to have this onerous tax eliminated." View Larger + Prev Next IGT, Twin River, and Lobbyist Ties The proposal to extend IGT's lottery contract for 20 years is under challenge from Twin River casino. Lobbying for Twin River are many of Mattiello's closest allies including Matt Jerzyk and the controversial Mark Ryan. Mattiello and Ryan's relationship has come under criticism. As GoLocal reported in October: WPRO talk show host Dan Yorke said on air that the Providence Journal’s coverage of Twin River's effort to secure the state’s lottery contract is biased -- and is being influenced by a former newspaper executive who is now a lobbyist for the casino company. “The Journal is on the take,” said York. LISTEN TO THE AUDIO FROM WPRO HERE Yorke said that the newspaper’s journalism and especially their editorials are tainted due to the influence of former Providence Journal Executive Vice President and Legal Counsel Mark Ryan who lobbies at the State House for Twin River. According to Ryan's bio, "he remains a consultant to the publisher of the Providence Journal Company." Ryan is paid $5,000 a month by casino company Twin River, in its effort to dethrone IGT as the state's exclusive lottery contractor. Ryan also lobbies for the newspaper industry, National Grid, Hasbro and the marijuana industry. Ryan according to multiple State House sources is a close ally of Speaker of the House Nick Mattiello. View Larger + Prev Next Frias or Fenton-Fung Republican Steve Frias has given Mattiello two tough challenges in 2016 and 2018. He could run again. In addition, Barbara Ann Fenton-Fung could make a run. There has been talk around town of her squaring off to face Democrat Mattiello in Cranston House District 15. While Fenton-Fung will be one to watch in 2020 — keep an eye on state GOP machinations. The party clearly hasn’t recovered from the bruising 2018 campaign season, but a Presidential election year could help change that. View Larger + Prev Next Mark Ryan Mark Ryan is the lobbyist closest to the Speaker. Now, his relationship with the marijuana industry has come under scrutiny. He is also lobbying for the newspaper industry to protect the mandate for legal notices, at a cost of more than $700,000 for cities and towns as well as state agencies. In addition, he is the lobbyist for Hasbro, Twin River, and National Grid -- three companies that are lightning rods. Hasbro may seek a significant deal to stay in RI and build a new headquarters; Twin River is seeking to disrupt the IGT Lottery deal; and National Grid is fighting off efforts by renewable energy companies to force Grid to move quicker in connecting to projects to the grid. PrevNext



















Related Articles

Enjoy this post? Share it with others.