EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb1342* HOUSE BILL 1342 E1, J1, E2 2lr2449 By: Delegate Acevero Introduced and read first time: February 11, 2022 Assigned to: Judiciary A BILL ENTITLED AN ACT concerning 1 Cannabis – Legalization and Regulation 2 (Cannabis Legalization and Equity Act) 3 FOR the purpose of legalizing the possession and use of a certain amount of cannabis by a 4 person of at least a certain age; providing for expungement of records, dismissal of 5 charges, and commutation of sentences in certain cases involving cannabis–related 6 charges; providing for a system of regulation of the sale of cannabis by the Maryland 7 Department of Health and local jurisdictions; providing for the taxation of the sale 8 of cannabis in the State; and generally relating to cannabis. 9 BY repealing and reenacting, without amendments, 10 Article – Criminal Law 11 Section 5–101(a) 12 Annotated Code of Maryland 13 (2021 Replacement Volume and 2021 Supplement) 14 BY adding to 15 Article – Criminal Law 16 Section 5–101(e–1) and (u), 5–601.2, and 5–629 17 Annotated Code of Maryland 18 (2021 Replacement Volume and 2021 Supplement) 19 BY repealing and reenacting, with amendments, 20 Article – Criminal Law 21 Section 5–101(p), (s), (t), and (u), 5–601(a), (c), and (d), 5–601.1, 5–612, 5–614, 22 5–619(c), and 5–620; and 10–113, 10–116, and 10–117 to be under the 23 amended part “Part II. Alcoholic Beverages and Cannabis Violations” 24 Annotated Code of Maryland 25 (2021 Replacement Volume and 2021 Supplement) 26 BY repealing 27 2 HOUSE BILL 1342 Article – Criminal Law 1 Section 5–101(r) 2 Annotated Code of Maryland 3 (2021 Replacement Volume and 2021 Supplement) 4 BY adding to 5 Article – Criminal Procedure 6 Section 10–105.3, 10–105.4, and 10–105.5 7 Annotated Code of Maryland 8 (2018 Replacement Volume and 2021 Supplement) 9 BY adding to 10 Article – Health – General 11 Section 23–101 through 23–602 to be under the new title “Title 23. Cannabis” 12 Annotated Code of Maryland 13 (2019 Replacement Volume and 2021 Supplement) 14 BY adding to 15 Article – Tax – General 16 Section 12.5–101 through 12.5–105 to be under the new title “Title 12.5. Cannabis 17 Tax” 18 Annotated Code of Maryland 19 (2016 Replacement Volume and 2021 Supplement) 20 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21 That the Laws of Maryland read as follows: 22 Article – Criminal Law 23 5–101. 24 (a) In this title the following words have the meanings indicated. 25 (E–1) (1) “CANNABIS” MEANS ALL PARTS OF THE PLA NT OF THE GENUS 26 CANNABIS, THE SEEDS OF THE PLA NT OF THE GENUS CANNABIS, THE RESIN 27 EXTRACTED FROM ANY P ART OF THE PLANT , AND EVERY COMPOUND , 28 MANUFACTURE , SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF TH E PLANT, ITS 29 SEEDS, OR ITS RESIN, INCLUDING CANNABIS C ONCENTRATE AND HASHI SH. 30 (2) “CANNABIS” DOES NOT INCLUDE INDUSTRIAL HEMP , FIBER 31 PRODUCED FROM THE ST ALKS, OIL, OR CAKE MADE FROM TH E SEEDS OF THE PLANT , 32 STERILIZED SEED OF T HE PLANT THAT IS INC APABLE OF GERMINATIO N, OR THE 33 WEIGHT OF ANY OTHER INGREDIENT COMBINED WITH CANNABIS TO PRE PARE 34 TOPICAL OR ORAL ADMI NISTRATIONS, FOOD, DRINK, OR OTHER PRODUCT . 35 (p) (1) “Drug paraphernalia” means equipment, a product, or material that is 36 HOUSE BILL 1342 3 used, intended for use, or designed for use, in: 1 (i) planting, propagating, cultivating, growing, harvesting, 2 manufacturing, compounding, converting, producing, processing, preparing, packaging, 3 repackaging, storing, containing, or concealing a controlled dangerous substance in 4 violation of this title; or 5 (ii) injecting, ingesting, inhaling, or otherwise introducing into the 6 human body a controlled dangerous substance in violation of this title. 7 (2) “Drug paraphernalia” includes: 8 (i) a kit used, intended for use, or designed for use in planting, 9 propagating, cultivating, growing, or harvesting any species of plant that is a controlled 10 dangerous substance OTHER THAN CANNABIS or from which a controlled dangerous 11 substance can be derived; 12 (ii) a kit used, intended for use, or designed for use in 13 manufacturing, compounding, converting, producing, processing, or preparing a controlled 14 dangerous substance OTHER THAN CANNABIS ; 15 (iii) an isomerization device used, intended for use, or designed for 16 use in increasing the potency of any species of plant that is a controlled dangerous 17 substance OTHER THAN CANNABIS ; 18 (iv) testing equipment used, intended for use, or designed for use in 19 analyzing the strength, effectiveness, or purity of a controlled dangerous substance OTHER 20 THAN CANNABIS ; 21 (v) a scale or balance used, intended for use, or designed for use in 22 weighing or measuring a controlled dangerous substance OTHER THAN CANNABIS ; 23 (vi) a diluent or adulterant, such as quinine hydrochloride, mannitol, 24 mannite, dextrose, or lactose, used, intended for use, or designed for use in cutting a 25 controlled dangerous substance OTHER THAN CANNABIS ; 26 (vii) a separation gin or sifter used, intended for use, or designed for 27 use in removing twigs and seeds from, or in otherwise cleaning or refining, [marijuana] A 28 CONTROLLED DANGEROUS SUBSTANCE OTHER THAN CANNABIS; 29 (viii) a blender, bowl, container, spoon, or mixing device used, 30 intended for use, or designed for use in compounding a controlled dangerous substance 31 OTHER THAN CANNABIS ; 32 (ix) a capsule, balloon, envelope, or other container used, intended 33 for use, or designed for use in packaging small quantities of a controlled dangerous 34 4 HOUSE BILL 1342 substance OTHER THAN CANNABIS ; 1 (x) a container or other object used, intended for use, or designed for 2 use in storing or concealing a controlled dangerous substance OTHER THAN CANNABIS ; 3 (xi) a hypodermic syringe, needle, or other object used, intended for 4 use, or designed for use in parenterally injecting a controlled dangerous substance into the 5 human body; and 6 (xii) an object used, intended for use, or designed for use in ingesting, 7 inhaling, or otherwise introducing [marijuana,] cocaine[, hashish, or hashish oil] into the 8 human body [such as: 9 1. a metal, wooden, acrylic, glass, stone, plastic, or ceramic 10 pipe with or without screen, permanent screen, hashish head, or punctured metal bowl; 11 2. a water pipe; 12 3. a carburetion tube or device; 13 4. a smoking or carburetion mask; 14 5. an object known as a roach clip used to hold burning 15 material, such as a marijuana cigarette that has become too small or too short to be held in 16 the hand; 17 6. a miniature spoon used for cocaine and cocaine vials; 18 7. a chamber pipe; 19 8. a carburetor pipe; 20 9. an electric pipe; 21 10. an air–driven pipe; 22 11. a chillum; 23 12. a bong; and 24 13. an ice pipe or chiller]. 25 (3) “DRUG PARAPHERNALIA ” DOES NOT INCLUDE CAN NABIS 26 ACCESSORIES AS DEFIN ED IN § 23–101 OF THE HEALTH – GENERAL ARTICLE. 27 [(r) (1) “Marijuana” means: 28 HOUSE BILL 1342 5 (i) all parts of any plant of the genus Cannabis, whether or not the 1 plant is growing; 2 (ii) the seeds of the plant; 3 (iii) the resin extracted from the plant; and 4 (iv) each compound, manufactured product, salt, derivative, mixture, 5 or preparation of the plant, its seeds, or its resin. 6 (2) “Marijuana” does not include: 7 (i) the mature stalks of the plant; 8 (ii) fiber produced from the mature stalks; 9 (iii) oil or cake made from the seeds of the plant; 10 (iv) except for resin, any other compound, manufactured product, 11 salt, derivative, mixture, or preparation of the mature stalks, fiber, oil, or cake; 12 (v) the sterilized seed of the plant that is incapable of germination; 13 or 14 (vi) hemp as defined in § 14–101 of the Agriculture Article.] 15 [(s)] (R) (1) “Narcotic drug” means a substance: 16 (i) that has been found to present an extreme danger to the health 17 and welfare of the community because of addiction–forming and addiction–sustaining 18 qualities; 19 (ii) that is: 20 1. an opiate; 21 2. a compound, manufactured substance, salt, derivative, or 22 preparation of opium, coca leaf, or an opiate; or 23 3. a substance and any compound, manufactured substance, 24 salt, derivative, or preparation that is chemically identical with a substance listed in items 25 1 and 2 of this item; and 26 (iii) that is produced: 27 1. directly or indirectly by extraction from substances of 28 6 HOUSE BILL 1342 vegetable origin; 1 2. independently by chemical synthesis; or 2 3. by a combination of extraction and chemical synthesis. 3 (2) “Narcotic drug” includes decocainized coca leaf or an extract of coca leaf 4 that does not contain cocaine or ecgonine. 5 [(t)] (S) “Noncontrolled substance” means a substance that is not classified as a 6 controlled dangerous substance under Subtitle 4 of this title. 7 [(u)] (T) (1) “Opiate” means a substance that has an addiction–forming or 8 addiction–sustaining quality similar to morphine or that can be converted into a drug that 9 has this addiction–forming or addiction–sustaining quality. 10 (2) “Opiate” includes: 11 (i) the racemic and levorotatory forms of an opiate; 12 (ii) except for seeds, the opium poppy, the plant of the species 13 Papaver somniferum L.; 14 (iii) the poppy straw consisting of the opium poppy after mowing 15 except the seeds; and 16 (iv) coca leaf. 17 (3) “Opiate” does not include, unless specifically designated as controlled 18 under § 5–202 of this title, the dextrorotatory isomer of 3–methoxy–n–methyl–morphinan 19 and its salts (dextromethorphan). 20 (U) “PERSONAL USE AMOUNT ” MEANS: 21 (1) AN AMOUNT OF CANNABI S THAT DOES NOT EXCE ED 224 GRAMS; 22 OR 23 (2) 24 OR FEWER MATURE CANNABIS PLANTS AND THE CANNABIS 24 PRODUCED BY THOSE PL ANTS ON THE PREMISES WHERE THE PLANTS ARE GROWN. 25 5–601. 26 (a) Except as otherwise provided in this title, a person may not: 27 (1) possess or administer to another a controlled dangerous substance, 28 unless: 29 HOUSE BILL 1342 7 (I) obtained directly or by prescription or order from an authorized 1 provider acting in the course of professional practice; [or] 2 (II) THE CONTROLLED DANGE ROUS SUBSTANCE IS CA NNABIS, 3 THE INDIVIDUAL IS AT LEAST 21 YEARS OLD, AND THE AMOUNT POSSE SSED DOES 4 NOT EXCEED A PERSONA L USE AMOUNT ; OR 5 (III) THE CONTROLLED DANGE ROUS SUBSTANCE IS CA NNABIS 6 AND POSSESSION IS LE GAL UNDER TITLE 13, SUBTITLE 33 OR TITLE 23 OF THE 7 HEALTH – GENERAL ARTICLE; OR 8 (2) obtain or attempt to obtain a controlled dangerous substance, or 9 procure or attempt to procure the administration of a controlled dangerous substance by: 10 (i) fraud, deceit, misrepresentation, or subterfuge; 11 (ii) the counterfeiting or alteration of a prescription or a written 12 order; 13 (iii) the concealment of a material fact; 14 (iv) the use of a false name or address; 15 (v) falsely assuming the title of or representing to be a 16 manufacturer, distributor, or authorized provider; or 17 (vi) making, issuing, or presenting a false or counterfeit prescription 18 or written order. 19 (c) (1) Except as provided in paragraphs (2), (3), and (4) of this subsection, a 20 person who violates this section is guilty of a misdemeanor and on conviction is subject to: 21 (i) for a first conviction, imprisonment not exceeding 1 year or a fine 22 not exceeding $5,000 or both; 23 (ii) for a second or third conviction, imprisonment not exceeding 18 24 months or a fine not exceeding $5,000 or both; or 25 (iii) for a fourth or subsequent conviction, imprisonment not 26 exceeding 2 years or a fine not exceeding $5,000 or both. 27 (2) (i) Except as provided in [subparagraph (ii)] SUBPARAGRAPHS (II) 28 AND (III) of this paragraph AND TITLE 23 OF THE HEALTH – GENERAL ARTICLE, a 29 person whose violation of this section involves the use or possession of [marijuana] AN 30 AMOUNT OF CANNABIS GREATER THAN THE PER SONAL USE AMOUNT is guilty of a 31 8 HOUSE BILL 1342 [misdemeanor of possession of marijuana and is subject to imprisonment not exceeding 6 1 months or a fine not exceeding $1,000 or both] CIVIL OFFENSE PUNISH ABLE BY A FINE 2 OF NOT LESS THAN $100 AND NOT MORE THAN $200. 3 (ii) 1. A [first] finding of guilt under this section involving the 4 use or possession of [less than 10 grams of marijuana] AN AMOUNT OF CANNABIS NOT 5 EXCEEDING THE PERSON AL USE AMOUNT BY AN INDIVIDUAL UND ER THE AGE OF 21 6 YEARS is a civil offense punishable by [a fine not exceeding $100] COMPLETION OF UP TO 7 4 HOURS OF INSTRUCTION IN A DRUG AWARENESS PROGRAM ESTABLISHED BY THE 8 MARYLAND DEPARTMENT OF HEALTH. 9 2. [A second finding of guilt under this section involving the 10 use or possession of less than 10 grams of marijuana is a civil offense punishable by a fine 11 not exceeding $250] THE PARENTS OR LEGAL GUARDIAN OF A PERSON UNDER THE 12 AGE OF 18 YEARS WHO IS FOUND TO HAVE VIOLATED THIS SUBPAR AGRAPH SHALL 13 BE NOTIFIED OF THE O FFENSE AND OF THE REQUIREMENT FOR COMP LETION OF 14 THE DRUG AWARENESS PROGR AM. 15 3. [A third or subsequent finding of guilt under this section 16 involving the use or possession of less than 10 grams of marijuana is a civil offense 17 punishable by a fine not exceeding $500] THE MARYLAND DEPARTMENT OF HEALTH 18 SHALL SET FEES FOR T HE DRUG AWARENESS PR OGRAM SUFFICIENT TO COVER THE 19 COSTS OF ADMINISTERI NG THE PROGRAM , WHICH SHALL NOT EXCE ED $300. 20 4. [A. In addition to a fine, a court shall order a person 21 under the age of 21 years who commits a violation punishable under subsubparagraph 1, 22 2, or 3 of this subparagraph to attend a drug education program approved by the Maryland 23 Department of Health, refer the person to an assessment for substance abuse disorder, and 24 refer the person to substance abuse treatment, if necessary. 25 B. In addition to a fine, a court shall order a person at least 26 21 years old who commits a violation punishable under subsubparagraph 3 of this 27 subparagraph to attend a drug education program approved by the Maryland Department 28 of Health, refer the person to an assessment for substance abuse disorder, and refer the 29 person to substance abuse treatment, if necessary. 30 C. A court that orders a person to a drug education program 31 or substance abuse assessment or treatment under this subsubparagraph may hold the 32 case sub curia pending receipt of proof of completion of the program, assessment, or 33 treatment] AN OFFENDER UND ER THE AGE OF 21 YEARS WHO FAILS TO C OMPLETE 34 THE DRUG AWARENESS P ROGRAM WITHIN 1 YEAR IS GUILTY OF A CIVIL OFFENSE 35 PUNISHABLE BY A FINE NOT EXCEEDING $300 OR UP TO 40 HOURS OF COMMUNITY 36 SERVICE, OR BOTH. 37 (III) THE USE OR POSSESSION OF AN AMOUNT NOT EXC EEDING 38 HOUSE BILL 1342 9 THE PERSONAL USE AMOUNT OF CANNABIS BY A N INDIVIDUAL AT LEAS T 21 YEARS 1 OLD DOES NOT CONSTITUTE A VIOLATION OF THIS SECTION. 2 (3) (i) 1. In this paragraph the following words have the meanings 3 indicated. 4 2. “Bona fide physician–patient relationship” means a 5 relationship in which the physician has ongoing responsibility for the assessment, care, and 6 treatment of a patient’s medical condition. 7 3. “Caregiver” means an individual designated by a patient 8 with a debilitating medical condition to provide physical or medical assistance to the 9 patient, including assisting with the medical use of [marijuana] CANNABIS, who: 10 A. is a resident of the State; 11 B. is at least 21 years old; 12 C. is an immediate family member, a spouse, or a domestic 13 partner of the patient; 14 D. has not been convicted of a crime of violence as defined in 15 § 14–101 of this article; 16 E. has not been convicted of a violation of a State or federal 17 controlled dangerous substances law; 18 F. has not been convicted of a crime of moral turpitude; 19 G. has been designated as caregiver by the patient in writing 20 that has been placed in the patient’s medical record prior to arrest; 21 H. is the only individual designated by the patient to serve as 22 caregiver; and 23 I. is not serving as caregiver for any other patient. 24 4. “Debilitating medical condition” means a chronic or 25 debilitating disease or medical condition or the treatment of a chronic or debilitating 26 disease or medical condition that produces one or more of the following, as documented by 27 a physician with whom the patient has a bona fide physician–patient relationship: 28 A. cachexia or wasting syndrome; 29 B. severe or chronic pain; 30 C. severe nausea; 31 10 HOUSE BILL 1342 D. seizures; 1 E. severe and persistent muscle spasms; or 2 F. any other condition that is severe and resistant to 3 conventional medicine. 4 (ii) 1. In a prosecution for the use or possession of [marijuana] 5 CANNABIS, the defendant may introduce and the court shall consider as a mitigating factor 6 any evidence of medical necessity. 7 2. Notwithstanding paragraph (2) of this subsection, if the 8 court finds that the person used or possessed [marijuana] CANNABIS because of medical 9 necessity, the court shall dismiss the charge. 10 (iii) 1. In a prosecution for the use or possession of [marijuana] 11 CANNABIS under this section, it is an affirmative defense that the defendant used or 12 possessed [marijuana] CANNABIS because: 13 A. the defendant has a debilitating medical condition that 14 has been diagnosed by a physician with whom the defendant has a bona fide 15 physician–patient relationship; 16 B. the debilitating medical condition is severe and resistant 17 to conventional medicine; and 18 C. [marijuana] CANNABIS is likely to provide the defendant 19 with therapeutic or palliative relief from the debilitating medical condition. 20 2. A. In a prosecution for the possession of [marijuana] 21 CANNABIS under this section, it is an affirmative defense that the defendant possessed 22 [marijuana] CANNABIS because the [marijuana] CANNABIS was intended for medical use 23 by an individual with a debilitating medical condition for whom the defendant is a 24 caregiver. 25 B. A defendant may not assert the affirmative defense under 26 this subsubparagraph unless the defendant notifies the State’s Attorney of the defendant’s 27 intention to assert the affirmative defense and provides the State’s Attorney with all 28 documentation in support of the affirmative defense in accordance with the rules of 29 discovery provided in Maryland Rules 4–262 and 4–263. 30 3. An affirmative defense under this subparagraph may not 31 be used if the defendant was: 32 A. using [marijuana] CANNABIS in a public place or 33 HOUSE BILL 1342 11 assisting the individual for whom the defendant is a caregiver in using the [marijuana] 1 CANNABIS in a public place; or 2 B. in possession of more than 1 ounce of [marijuana] 3 CANNABIS. 4 (4) A violation of this section involving the smoking of [marijuana] 5 CANNABIS in a public place is a civil offense punishable by a fine not exceeding $500. 6 (d) The provisions of subsection (c)(2)(ii) of this section making the possession of 7 [marijuana] CANNABIS a civil offense FOR INDIVIDUALS UNDE R THE AGE OF 21 YEARS 8 AND THE PROVISIONS O F TITLE 23 OF THE HEALTH – GENERAL ARTICLE MAKING 9 THE POSSESSION OF CA NNABIS LEGAL FOR IND IVIDUALS AT LEAST 21 YEARS OLD 10 may not be construed to affect the laws relating to[: 11 (1)] operating a vehicle or vessel while under the influence of or while 12 impaired by a controlled dangerous substance[; or 13 (2) seizure and forfeiture]. 14 5–601.1. 15 (a) A police officer shall issue a citation to a person who the police officer has 16 probable cause to believe has committed a violation of § 5–601 of this part involving the use 17 or possession of [less than 10 grams of marijuana] CANNABIS. 18 (b) (1) A violation of § 5–601 of this part involving the use or possession of [less 19 than 10 grams of marijuana] CANNABIS is a civil offense. 20 (2) Adjudication of a violation under § 5–601 of this part involving the use 21 or possession of [less than 10 grams of marijuana] CANNABIS: 22 (i) is not a criminal conviction for any purpose; and 23 (ii) does not impose any of the civil disabilities that may result from 24 a criminal conviction. 25 (c) (1) A citation issued for a violation of § 5–601 of this part involving the use 26 or possession of [less than 10 grams of marijuana] CANNABIS shall be signed by the police 27 officer who issues the citation and shall contain: 28 (i) the name, address, and date of birth of the person charged; 29 (ii) the date and time that the violation occurred; 30 12 HOUSE BILL 1342 (iii) the location at which the violation occurred; 1 (iv) the [fine] PENALTY that may be imposed; 2 (v) a notice stating that prepayment of [the] ANY fine is allowed[, 3 except as provided in paragraph (2) of this subsection]; and 4 (vi) a notice in boldface type that states that the person shall: 5 1. pay the full amount of [the] ANY preset fine; or 6 2. request a trial date at the date, time, and place established 7 by the District Court by writ or trial notice. 8 (2) [(i)] If a citation for a violation of § 5–601 of this part involving the 9 use or possession of [less than 10 grams of marijuana] CANNABIS is issued to a person 10 under the age of 21 years, the court shall summon the person for trial. 11 [(ii) If the court finds that a person at least 21 years old who has been 12 issued a citation under this section has at least twice previously been found guilty under § 13 5–601 of this part involving the use or possession of less than 10 grams of marijuana, the 14 court shall summon the person for trial.] 15 (d) The form of the citation shall be uniform throughout the State and shall be 16 prescribed by the District Court. 17 (e) (1) The Chief Judge of the District Court shall establish a schedule for the 18 prepayment of [the] A fine. 19 (2) Prepayment of a fine shall be considered a plea of guilty to a Code 20 violation. 21 (3) A person described in subsection (c)(2) of this section may not prepay 22 the fine. 23 (f) (1) A person may request a trial by sending a request for trial to the District 24 Court in the jurisdiction where the citation was issued within 30 days of the issuance of the 25 citation. 26 (2) If a person other than a person described in subsection (c)(2) of this 27 section does not request a trial or prepay the fine within 30 days of the issuance of the 28 citation, the court may impose the maximum fine and costs against the person and find the 29 person is guilty of a Code violation [for purposes of subsection (c)(2)(ii) of this section]. 30 (g) The issuing jurisdiction shall forward a copy of the citation and a request for 31 trial to the District Court in the district having venue. 32 HOUSE BILL 1342 13 (h) (1) The failure of a defendant to respond to a summons described in 1 subsection (c)(2) of this section shall be governed by § 5–212 of the Criminal Procedure 2 Article. 3 (2) If a person at least 21 years old fails to appear after having requested 4 a trial, the court may impose the maximum fine and costs against the person and find the 5 person is guilty of a Code violation [for purposes of subsection (c)(2)(ii) of this section]. 6 (i) In any proceeding for a Code violation under § 5–601 of this part involving the 7 use or possession of [less than 10 grams of marijuana] CANNABIS: 8 (1) the State has the burden to prove the guilt of the defendant by a 9 preponderance of the evidence; 10 (2) the court shall apply the evidentiary standards as prescribed by law or 11 rule for the trial of a criminal case; 12 (3) the court shall ensure that the defendant has received a copy of the 13 charges against the defendant and that the defendant understands those charges; 14 (4) the defendant is entitled to cross–examine all witnesses who appear 15 against the defendant, to produce evidence or witnesses on behalf of the defendant, and to 16 testify on the defendant’s own behalf, if the defendant chooses to do so; 17 (5) the defendant is entitled to be represented by counsel of the defendant’s 18 choice and at the expense of the defendant; and 19 (6) the defendant may enter a plea of guilty or not guilty, and the verdict 20 of the court in the case shall be: 21 (i) guilty of a Code violation; 22 (ii) not guilty of a Code violation; or 23 (iii) probation before judgment, imposed by the court in the same 24 manner and to the same extent as is allowed by law in the trial of a criminal case. 25 (j) (1) The defendant is liable for the costs of the proceedings in the District 26 Court. 27 (2) The court costs in a Code violation case under § 5–601 of this part 28 involving the use or possession of [less than 10 grams of marijuana] CANNABIS in which 29 costs are imposed are $5. 30 (k) (1) The State’s Attorney for any county may prosecute a Code violation 31 under § 5–601 of this part involving the use or possession of [less than 10 grams of 32 14 HOUSE BILL 1342 marijuana] CANNABIS in the same manner as prosecution of a violation of the criminal 1 laws of the State. 2 (2) In a Code violation case under § 5–601 of this part involving the use or 3 possession of [less than 10 grams of marijuana] CANNABIS, the State’s Attorney may: 4 (i) enter a nolle prosequi or move to place the case on the stet docket; 5 and 6 (ii) exercise authority in the same manner as prescribed by law for 7 violation of the criminal laws of the State. 8 (l) A person issued a citation for a violation of § 5–601 of this part involving the 9 use or possession of [less than 10 grams of marijuana] CANNABIS who is under the age of 10 18 years shall be subject to the procedures and dispositions provided in Title 3, Subtitle 8A 11 of the Courts Article. 12 (m) A citation for a violation of § 5–601 of this part involving the use or possession 13 of [less than 10 grams of marijuana] CANNABIS and the official record of a court regarding 14 the citation are not subject to public inspection and may not be included on the public 15 website maintained by the Maryland Judiciary if: 16 (1) the defendant has prepaid [the] ANY fine; 17 (2) the defendant has pled guilty to or been found guilty of the Code 18 violation and has fully paid [the] ANY fine OR COMPLETED THE DRU G AWARENESS 19 PROGRAM and PAID THE costs imposed for the violation; 20 (3) the defendant has received a probation before judgment and has fully 21 paid [the] ANY fine OR COMPLETED THE DRU G AWARENESS PROGRAM and completed 22 any terms imposed by the court; 23 (4) the case has been removed from the stet docket after the defendant fully 24 paid [the] ANY fine OR COMPLETED THE DRU G AWARENESS PROGRAM and completed 25 any terms imposed by the court; 26 (5) the State has entered a nolle prosequi; 27 (6) the defendant has been found not guilty of the charge; or 28 (7) the charge has been dismissed. 29 5–601.2. 30 (A) A PERSON MAY NOT CULTI VATE CANNABIS PLANTS IN A MANNER THAT 31 IS CONTRARY TO THIS SECTION. 32 HOUSE BILL 1342 15 (B) CANNABIS CULTIVATION MAY OCCUR ONLY ON PR OPERTY LAWFULLY IN 1 POSSESSION OF THE CU LTIVATOR OR WITH THE CONSENT OF THE PERSO N IN 2 LAWFUL POSSESSION OF THE PROPERTY . 3 (C) A PERSON UNDER THE AGE OF 21 YEARS MAY NOT CULTIV ATE CANNABIS 4 PLANTS. 5 (D) A PERSON MAY NOT CULTI VATE MORE THAN 24 CANNABIS PLANTS . 6 (E) SUBJECT TO THE PROVIS IONS OF § 5–602 OF THIS SUBTITLE, A PERSON 7 WHO VIOLATES SUBSECTION (A), (B), (C), OR (D) OF THIS SECTION IS GUIL TY OF A 8 CIVIL OFFENSE PUNISH ABLE BY A FINE NOT E XCEEDING $750. 9 (F) A POLICE OFFICER SHALL ISSUE A CITATION TO A PERSON WHO THE 10 POLICE OFFICER HAS P ROBABLE CAUSE TO BEL IEVE HAS COMMITTED A VIOLATION 11 OF THIS SECTION. 12 (G) (1) A VIOLATION OF THIS SE CTION IS A CIVIL OFFENSE. 13 (2) ADJUDICATION OF A VIO LATION UNDER THIS SECTION: 14 (I) IS NOT A CRIMINAL CO NVICTION FOR ANY PUR POSE; AND 15 (II) DOES NOT IMPOSE ANY OF THE CIVIL DISABIL ITIES THAT 16 MAY RESULT FROM A CR IMINAL CONVICTION . 17 (H) (1) A CITATION ISSUED FOR A VIOLATION OF THIS SECTION SHALL BE 18 SIGNED BY THE PO LICE OFFICER WHO ISS UES THE CITATION AND SHALL CONTAIN : 19 (I) THE NAME, ADDRESS, AND DATE OF BIRTH OF THE PERSON 20 CHARGED; 21 (II) THE DATE AND TIME TH AT THE VIOLATION OCC URRED; 22 (III) THE LOCATION AT WHIC H THE VIOLATION OCCU RRED; 23 (IV) THE FINE THAT MAY BE IMPOSED ; 24 (V) A NOTICE STATING THA T PREPAYMENT OF THE FINE IS 25 ALLOWED, EXCEPT AS PROVIDED I N PARAGRAPH (2) OF THIS SUBSECTION ; AND 26 (VI) A NOTICE IN BOLDFACE TYPE THAT STATES THA T THE 27 16 HOUSE BILL 1342 PERSON SHALL : 1 1. PAY THE FULL AMOUNT OF THE PRESE T FINE; OR 2 2. REQUEST A TRIAL AT T HE DATE, TIME, AND PLACE 3 ESTABLISHED BY THE DISTRICT COURT BY WRIT OR TRIA L NOTICE. 4 (2) IF A CITATION FOR A V IOLATION OF THIS SEC TION IS ISSUED TO A 5 PERSON UNDER THE AGE OF 21 YEARS, THE COURT SHALL SUMM ON THE PERSON 6 FOR TRIAL. 7 (I) THE FORM OF THE CITAT ION SHALL BE UNIFORM THROUGHOUT THE 8 STATE AND SHALL BE PR ESCRIBED BY THE DISTRICT COURT. 9 (J) (1) THE CHIEF JUDGE OF THE DISTRICT COURT SHALL ESTABLISH A 10 SCHEDULE FOR THE PRE PAYMENT OF THE FINE . 11 (2) PREPAYME NT OF A FINE SHALL BE CONSIDERED A PLEA OF 12 GUILTY TO A CODE VIOLATION . 13 (3) A PERSON UNDER THE AGE OF 21 YEARS MAY NOT PREPAY THE 14 FINE. 15 (K) (1) A PERSON MAY REQUEST A TRIAL BY SENDING A R EQUEST FOR 16 TRIAL TO THE DISTRICT COURT IN THE JURISDIC TION WHERE THE CITATION WAS 17 ISSUED WITHIN 30 DAYS AFTER THE ISSUA NCE OF THE CITATION . 18 (2) IF A PERSON DOES NOT REQUEST A TRIAL OR PREPAY THE FINE 19 WITHIN 30 DAYS AFTER THE ISSUA NCE OF THE CITATION , THE COURT MAY IMPOSE 20 THE MAXIMUM FINE AND COSTS AGAINST TH E PERSON AND FIND THE PERSON 21 GUILTY OF A CODE VIOLATION . 22 (L) THE ISSUING JURISDICT ION SHALL FORWARD A COPY OF THE CITATION 23 AND A REQUEST FOR TR IAL TO THE DISTRICT COURT IN THE DISTRICT HAVING 24 VENUE. 25 (M) (1) THE FAILURE OF A DEFE NDANT TO RESPOND TO A SUMMONS 26 DESCRIBED IN SUBSECTION (H)(2) OF THIS SECTION SHAL L BE GOVERNED BY § 27 5–212 OF THE CRIMINAL PROCEDURE ARTICLE. 28 (2) IF A PERSON AT LEAST 21 YEARS OLD FAILS TO A PPEAR AFTER 29 HAVING REQUESTED A T RIAL, THE COURT MAY IMPOSE THE MAXIMUM FINE OR 30 COMMUNITY SERVICE AND COSTS AGAINST TH E PERSON AND FIND TH E PERSON 31 HOUSE BILL 1342 17 GUILTY OF A CODE VIOLATION . 1 (N) IN ANY PROCEEDING FOR A CODE VIOLATION UNDER THIS SECTION: 2 (1) THE STATE HAS THE BURDEN TO PROVE THE GUILT O F THE 3 DEFENDANT BY A PREPO NDERANCE OF THE EVID ENCE; 4 (2) THE COURT SHALL APPLY THE EVIDENTIARY STAN DARDS AS 5 PRESCRIBED BY LAW OR RULE FOR THE TRIAL O F A CRIMINAL CASE ; 6 (3) THE COURT SHALL ENSU RE THAT THE DEFENDAN T HAS RECEIVED 7 A COPY OF THE CHARGE S AGAINST THE DEFEND ANT AND THAT THE DEF ENDANT 8 UNDERSTANDS THOSE CHARGES; 9 (4) THE DEFENDANT IS ENT ITLED TO CROSS –EXAMINE ALL 10 WITNESSES WHO APPEAR AGAINST THE DEFENDAN T, TO PRODUCE EVIDENCE OR 11 WITNESSES ON BEHALF OF THE DEFENDANT , AND TO TESTIFY ON TH E DEFENDANT ’S 12 OWN BEHALF , IF THE DEFENDANT CHO OSES TO DO SO; 13 (5) THE DEFENDANT IS ENT ITLED TO BE REPRESEN TED BY COUNSEL 14 OF THE DEFENDANT ’S CHOICE AND AT THE EXPENSE OF THE DEFEN DANT; AND 15 (6) THE DEFENDANT MAY EN TER A PLEA OF GUILTY OR NOT GUILTY, 16 AND THE VERDICT OF T HE COURT IN THE CASE SHALL BE: 17 (I) GUILTY OF A CODE VIOLATION ; 18 (II) NOT GUILTY OF A CODE VIOLATION ; OR 19 (III) PROBATION BEFORE JUD GMENT, IMPOSED BY THE COURT 20 IN THE SAME MANNER A ND TO THE SAME EXTEN T AS IS ALLOWED BY L AW IN THE 21 TRIAL OF A CRIMINAL CASE. 22 (O) (1) THE DEFENDANT IS LIAB LE FOR THE COSTS OF THE 23 PROCEEDINGS IN THE DISTRICT COURT. 24 (2) THE COURT COSTS IN A CODE VIOLATION CASE U NDER THIS 25 SECTION IN WHICH COS TS ARE IMPOSED ARE $5. 26 (P) (1) THE STATE’S ATTORNEY FOR ANY COUN TY MAY PROSECUTE A 27 CODE VIOLATION UNDER THIS SECTION IN THE SAME MANNER AS PROSECUT ION 28 FOR A VIOLATION OF T HE CRIMINAL LAWS OF THE STATE. 29 18 HOUSE BILL 1342 (2) IN A CODE VIOLATION CASE U NDER THIS SECTION , THE STATE’S 1 ATTORNEY MAY : 2 (I) ENTER A NOLLE PROSEQ UI OR MOVE TO PLACE THE CASE ON 3 THE STET DOCKET ; AND 4 (II) EXERCISE AUTH ORITY IN THE SAME MA NNER AS 5 PRESCRIBED BY LAW FO R VIOLATION OF THE C RIMINAL LAWS OF THE STATE. 6 (Q) A PERSON ISSUED A CITA TION FOR A VIOLATION OF THIS SECTION WHO 7 IS UNDER THE AGE OF 18 YEARS SHALL BE SUBJE CT TO THE PROCEDURES AND 8 DISPOSITIONS PROVIDE D IN TITLE 3, SUBTITLE 8A OF THE COURTS ARTICLE. 9 (R) A CITATION FOR A VIOLA TION OF THIS SECTION AND THE OFFICIAL 10 RECORD OF A COURT RE GARDING THE CITATION ARE NOT SUBJECT TO P UBLIC 11 INSPECTION AND MAY N OT BE INCLUDED ON TH E PUBLIC WEBSITE MAI NTAINED BY 12 THE MARYLAND JUDICIARY IF: 13 (1) THE DEFENDANT HAS PR EPAID THE FINE; 14 (2) THE DEFENDANT HAS PL ED GUILTY TO OR BEEN FOUND GUILTY 15 OF THE CODE VIOLATION AND HA S FULLY PAID THE FIN E AND THE COSTS IMPOSED 16 FOR THE VIOLATION ; 17 (3) THE DEFENDANT HAS RE CEIVED A PROBA TION BEFORE 18 JUDGMENT AND HAS FUL LY PAID THE FINE AND COMPLETED ANY TE RMS IMPOSED 19 BY THE COURT; 20 (4) THE CASE HAS BEEN RE MOVED FROM THE STET DOCKET AFTER 21 THE DEFENDANT FULLY PAID THE FINE AND CO MPLETED ANY TERMS IM POSED BY 22 THE COURT; 23 (5) THE STATE HAS ENTERED A NOLLE PROS EQUI; 24 (6) THE DEFENDANT HAS BE EN FOUND NOT GUILTY OF THE CHARGE ; 25 OR 26 (7) THE CHARGE HAS BEEN DISMISSED. 27 5–612. 28 (a) [A] EXCEPT AS OTHERWISE P ROVIDED IN THIS TITL E, A person may not 29 manufacture, distribute, dispense, or possess: 30 HOUSE BILL 1342 19 (1) 50 pounds or more of [marijuana] CANNABIS; 1 (2) 448 grams or more of cocaine; 2 (3) 448 grams or more of any mixture containing a detectable amount, as 3 scientifically measured using representative sampling methodology, of cocaine; 4 (4) 448 grams or more of cocaine base, commonly known as “crack”; 5 (5) 28 grams or more of morphine or opium or any derivative, salt, isomer, 6 or salt of an isomer of morphine or opium; 7 (6) 28 grams or more of any mixture containing a detectable amount, as 8 scientifically measured using representative sampling methodology, of morphine or opium 9 or any derivative, salt, isomer, or salt of an isomer of morphine or opium; 10 (7) 5 grams or more of fentanyl or any structural variation of fentanyl that 11 is scheduled by the United States Drug Enforcement Administration; 12 (8) 28 grams or more of any mixture containing a detectable amount, as 13 scientifically measured using representative sampling methodology, of fentanyl or any 14 structural variation of fentanyl that is scheduled by the United States Drug Enforcement 15 Administration; 16 (9) 1,000 dosage units or more of lysergic acid diethylamide; 17 (10) any mixture containing the equivalent of 1,000 dosage units of lysergic 18 acid diethylamide; 19 (11) 16 ounces or more of phencyclidine in liquid form; 20 (12) 448 grams or more of any mixture containing a detectable amount, as 21 scientifically measured using representative sampling methodology, of phencyclidine; 22 (13) 448 grams or more of methamphetamine; or 23 (14) 448 grams or more of any mixture containing a detectable amount, as 24 scientifically measured using representative sampling methodology, of methamphetamine. 25 (b) For the purpose of determining the quantity of a controlled dangerous 26 substance involved in individual acts of manufacturing, distributing, dispensing, or 27 possessing under subsection (a) of this section, the acts may be aggregated if each of the 28 acts occurred within a 90–day period. 29 (c) (1) A person who is convicted of a violation of subsection (a) of this section 30 shall be sentenced to imprisonment for not less than 5 years and is subject to a fine not 31 exceeding $100,000. 32 20 HOUSE BILL 1342 (2) The court may not suspend any part of the mandatory minimum 1 sentence of 5 years. 2 (3) Except as provided in § 4–305 of the Correctional Services Article, the 3 person is not eligible for parole during the mandatory minimum sentence. 4 5–614. 5 (a) (1) Unless authorized by law to possess the substance, a person may not 6 bring into the State: 7 (i) 45 kilograms or more of [marijuana] CANNABIS; 8 (ii) 28 grams or more of cocaine; 9 (iii) any mixture containing 28 grams or more of cocaine; 10 (iv) 4 grams or more of morphine or opium or any derivative, salt, 11 isomer, or salt of an isomer of morphine or opium; 12 (v) 1,000 dosage units of lysergic acid diethylamide; 13 (vi) any mixture containing the equivalent of 1,000 dosage units of 14 lysergic acid diethylamide; 15 (vii) 28 grams or more of phencyclidine in liquid or powder form; 16 (viii) 112 grams or more of any mixture containing phencyclidine; 17 (ix) 1,000 dosage units or more of methaqualone; 18 (x) 28 grams or more of methamphetamine; 19 (xi) any mixture containing 28 grams or more of methamphetamine; 20 or 21 (xii) 4 grams or more of fentanyl or a fentanyl analogue. 22 (2) A person who violates this subsection is guilty of a felony and on 23 conviction is subject to imprisonment not exceeding 25 years or a fine not exceeding $50,000 24 or both. 25 (b) (1) Unless authorized by law to possess the [marijuana] CANNABIS, a 26 person may not bring into the State more than 5 kilograms but less than 45 kilograms of 27 [marijuana] CANNABIS. 28 HOUSE BILL 1342 21 (2) A person who violates this subsection is guilty of a felony and on 1 conviction is subject to imprisonment not exceeding 10 years or a fine not exceeding $10,000 2 or both. 3 5–619. 4 (c) (1) [This subsection does not apply to the use or possession of drug 5 paraphernalia involving the use or possession of marijuana. 6 (2)] Unless authorized under this title, a person may not use or possess with 7 intent to use drug paraphernalia to: 8 (i) plant, propagate, cultivate, grow, harvest, manufacture, 9 compound, convert, produce, process, prepare, pack, repack, store, contain, or conceal a 10 controlled dangerous substance; or 11 (ii) inject, ingest, inhale, or otherwise introduce into the human body 12 a controlled dangerous substance. 13 [(3)] (2) A person who violates this subsection is guilty of a misdemeanor 14 and on conviction is subject to: 15 (i) for a first violation, a fine not exceeding $500; and 16 (ii) for each subsequent violation, imprisonment not exceeding 2 17 years or a fine not exceeding $2,000 or both. 18 [(4)] (3) A person who is convicted of violating this subsection for the first 19 time and who previously has been convicted of violating subsection (d)(4) of this section is 20 subject to the penalty specified under paragraph [(3)(ii)] (2)(II) of this subsection. 21 5–620. 22 (a) Unless authorized under this title, a person may not: 23 (1) obtain or attempt to obtain controlled paraphernalia by: 24 (i) fraud, deceit, misrepresentation, or subterfuge; 25 (ii) counterfeiting a prescription or a written order; 26 (iii) concealing a material fact or the use of a false name or address; 27 (iv) falsely assuming the title of or representing to be a 28 manufacturer, distributor, or authorized provider; or 29 (v) making or issuing a false or counterfeit prescription or written 30 22 HOUSE BILL 1342 order; or 1 (2) possess or distribute controlled paraphernalia under circumstances 2 which reasonably indicate an intention to use the controlled paraphernalia for purposes of 3 illegally administering a controlled dangerous substance. 4 (b) Evidence of circumstances that reasonably indicate an intent to use controlled 5 paraphernalia to manufacture, administer, distribute, or dispense a controlled dangerous 6 substance unlawfully include the close proximity of the controlled paraphernalia to an 7 adulterant, diluent, or equipment commonly used to illegally manufacture, administer, 8 distribute, or dispense controlled dangerous substances, including: 9 (1) a scale; 10 (2) a sieve; 11 (3) a strainer; 12 (4) a measuring spoon; 13 (5) staples; 14 (6) a stapler; 15 (7) a glassine envelope; 16 (8) a gelatin capsule; 17 (9) procaine hydrochloride; 18 (10) mannitol; 19 (11) lactose; 20 (12) quinine; and 21 (13) a controlled dangerous substance. 22 (c) Information that is communicated to a physician to obtain controlled 23 paraphernalia from the physician in violation of this subtitle is not a privileged 24 communication. 25 (d) [(1) Except as provided in paragraph (2) of this subsection, a] A person who 26 violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment 27 not exceeding 4 years or a fine not exceeding $25,000 or both. 28 [(2) A person who violates this section involving the use or possession of 29 HOUSE BILL 1342 23 marijuana is subject to imprisonment not exceeding 1 year or a fine not exceeding $1,000 1 or both.] 2 5–629. 3 THE OFFENSES AND PENA LTIES IN THIS SUBTIT LE DO NOT APPLY TO 4 ACTIVITIES RELATED T O CANNABIS OR CANNAB IS ACCESSORIES THAT ARE LEGAL 5 UNDER: 6 (1) TITLE 13, SUBTITLE 33 OF THE HEALTH – GENERAL ARTICLE; OR 7 (2) TITLE 23 OF THE HEALTH – GENERAL ARTICLE. 8 Part II. Alcoholic Beverages AND CANNABIS Violations. 9 10–113. 10 An individual may not knowingly and willfully make a misrepresentation or false 11 statement as to the age of that individual or another to any person licensed to sell alcoholic 12 beverages OR CANNABIS or engaged in the sale of alcoholic beverages OR CANNABIS , for 13 the purpose of unlawfully obtaining, procuring, or having unlawfully furnished an alcoholic 14 beverage OR CANNABIS to an individual. 15 10–116. 16 An individual may not obtain, or attempt to obtain by purchase or otherwise, an 17 alcoholic beverage OR CANNABIS from any person licensed to sell alcoholic beverages OR 18 CANNABIS for consumption by another who the individual obtaining or attempting to 19 obtain the beverage OR CANNABIS knows is under the age of 21 years. 20 10–117. 21 (a) Except as provided in [subsection (c)] SUBSECTIONS (C) AND (D) of this 22 section, a person may not furnish an alcoholic beverage OR CANNABIS to an individual if: 23 (1) the person furnishing the alcoholic beverage OR CANNABIS knows that 24 the individual is under the age of 21 years; and 25 (2) the alcoholic beverage OR CANNABIS is furnished for the purpose of 26 consumption by the individual under the age of 21 years. 27 (b) Except as provided in subsection (c) of this section, an adult may not 28 knowingly and willfully allow an individual under the age of 21 years actually to possess 29 or consume an alcoholic beverage OR CANNABIS at a residence, or within the curtilage of 30 a residence that the adult owns or leases and in which the adult resides. 31 24 HOUSE BILL 1342 (c) (1) The prohibition set forth in subsection (a) of this section does not apply 1 if [the] A person furnishing [the] AN alcoholic beverage and the individual to whom the 2 alcoholic beverage is furnished: 3 (i) are members of the same immediate family, and the alcoholic 4 beverage is furnished and consumed in a private residence or within the curtilage of the 5 residence; or 6 (ii) are participants in a religious ceremony. 7 (2) The prohibition set forth in subsection (b) of this section does not apply 8 if [the] AN adult allowing the possession or consumption of [the] AN alcoholic beverage and 9 the individual under the age of 21 years who possesses or consumes the alcoholic beverage: 10 (i) are members of the same immediate family, and the alcoholic 11 beverage is possessed and consumed in a private residence, or within the curtilage of the 12 residence, of the adult; or 13 (ii) are participants in a religious ceremony. 14 (d) THE PROHIBITIONS SET FORTH IN SUBSECTIONS (A) AND (B) OF THIS 15 SECTION DO NOT APPLY IN THE CASE OF AN IN DIVIDUAL UNDER THE A GE OF 21 16 YEARS WHO IS ALLOWED TO POSSES S CANNABIS AND CANNA BIS ACCESSORIES 17 UNDER TITLE 13, SUBTITLE 33 OF THE HEALTH – GENERAL ARTICLE. 18 (E) A person may not violate subsection (a) or (b) of this section if the violation 19 involves an individual under the age of 21 years who: 20 (1) the person knew or reasonably should have known would operate a 21 motor vehicle after consuming the alcoholic beverage OR CANNABIS; and 22 (2) as a result of operating a motor vehicle while under the influence of 23 alcohol or while impaired by alcohol OR CANNABIS, causes serious physical injury or death 24 to the individual or another. 25 Article – Criminal Procedure 26 10–105.3. 27 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 28 INDICATED. 29 (2) “AUTOMATIC EXPUNGEMENT ” MEANS EXPUNGEMENT WI THOUT 30 THE FILING OF A PETI TION OR PAYMENT OF A FEE BY THE PERSON WH O IS THE 31 HOUSE BILL 1342 25 SUBJECT OF THE RECOR DS TO BE EXPUNGED . 1 (3) “PERSONAL USE AMOUNT ” HAS THE MEANING STAT ED IN § 5–101 2 OF THE CRIMINAL LAW ARTICLE. 3 (B) THIS SECTION DOES NOT APPLY TO A CASE INVO LVING A CONVICTION 4 OF A CRIME OF VIOLENCE , AS DEFINED IN § 14–101 OF THE CRIMINAL LAW ARTICLE. 5 (C) ALL COURT RECORDS AND POLICE RECORDS RELAT ING TO ANY 6 DISPOSITION OF A CHA RGE OF POSSESSION OF CANNABIS UNDER § 5–601 OF THE 7 CRIMINAL LAW ARTICLE INVOLVING A QUANTITY OF CANNABIS THAT DID NOT 8 EXCEED THE PERSONAL USE AMOUNT ENTERED B EFORE OCTOBER 1, 2022, WHERE 9 POSSESSION OF CANNAB IS IS THE ONLY CHARG E IN THE CASE , SHALL BE 10 AUTOMATICALLY EXPUNG ED ON OR BEFORE OCTOBER 1, 2023. 11 (D) NOTWITHSTANDING § 10–107 OF THIS SUBTITLE, ALL COURT RECORDS 12 AND POLICE RECORDS R ELATING TO ANY DISPO SITION OF A CHARGE O F POSSESSION 13 OF CANNABIS UNDER § 5–601 OF THE CRIMINAL LAW ARTICLE INVOLVING A 14 QUANTITY OF CANNABIS THAT DID NOT EXCEED THE PERSONAL USE AMO UNT 15 ENTERED BEFORE OCTOBER 1, 2022, WHERE THE DEFENDANT WAS ALSO CHARGED 16 WITH ONE OR MORE OTH ER CRIMES IN THE SAM E CASE, REGARDLESS OF THE 17 DISPOSITION OF THE O THER CHARGE OR CHARG ES, SHALL BE AUTOMATICAL LY 18 EXPUNGED ON OR BEFOR E OCTOBER 1, 2024. 19 (E) WITH REGARD TO ANY DI SPOSITION OF A CHARGE OF POSSE SSION OF 20 CANNABIS UNDER § 5–601 OF THE CRIMINAL LAW ARTICLE INVOLVING A Q UANTITY 21 OF CANNABIS THAT DID NOT EXCEED THE PERSO NAL USE AMOUNT ENTER ED ON OR 22 AFTER OCTOBER 1, 2022, OR A CIVIL CHARGE UN DER § 5–601.2 OF THE CRIMINAL 23 LAW ARTICLE, NOTWITHSTANDING § 10–107 OF THIS SUBTITLE: 24 (1) THE COURT WITH JURIS DICTION OVER THE CAS E SHALL INITIATE 25 EFFORTS TO AUTOMATIC ALLY EXPUNGE ALL COU RT RECORDS AND POLIC E 26 RECORDS RELATING TO THE CHARGE 1 YEAR AFTER DISPOSITI ON OF THE CHARGE ; 27 AND 28 (2) EXPUNGEMENT OF COURT RE CORDS AND POLICE REC ORDS 29 RELATING TO THE CHAR GE SHALL BE COMPLETE D ON OR BEFORE 1 YEAR AND 90 30 DAYS AFTER DISPOSITI ON. 31 10–105.4. 32 (A) A PERSON AGAINST WHOM ONE OR MORE CHARGES RELATING TO USE, 33 POSSESSION, DISTRIBUTION, OR CULTIVATION O F CANNABIS ARE PENDING ON 34 26 HOUSE BILL 1342 OCTOBER 1, 2022, MAY APPLY TO THE REL EVANT STATE’S ATTORNEY FOR 1 DISMISSAL OF THE CHA RGES. 2 (B) AFTER REVIEWING THE P ERSON’S CRIMINAL RECORD , THE STATE’S 3 ATTORNEY MAY DISMISS THE CHARGE OR CHARGE S. 4 10–105.5. 5 (A) IN THIS SECTION, “COMMISSION” MEANS THE MARYLAND PAROLE 6 COMMISSION. 7 (B) THIS SECTION DOES NOT APPLY TO A CASE INVOLVING A C ONVICTION 8 FOR A CRIME OF VIOLE NCE, AS DEFINED IN § 14–101 OF THE CRIMINAL LAW 9 ARTICLE. 10 (C) A PERSON INCARCERATED OR UNDER PAROLE, PROBATION, OR 11 MANDATORY SUPERVISION ON OR AF TER OCTOBER 1, 2022, FOR AN OFFENSE 12 INVOLVING THE USE, POSSESSION, DISTRIBUTION, OR CULTIVATION OF CANNABIS, 13 OR A PERSON WHO IS INCARCERATED AFTER HAVING VIOLATED THE TERMS OF THE 14 PERSON’S PAROLE, PROBATION, OR MANDATORY SUPERVI SION DUE TO TESTING 15 POSITIVE FOR CANNABI S, MAY FILE AN EXPEDITED PE TITION FOR COMMUTATI ON OF 16 THE PERSON’S SENTENCE WITH THE COMMISSION. 17 (D) THE PETITION SHALL : 18 (1) BE IN WRITING AND SI GNED BY THE PETITION ER OR A PERSON ON 19 THE PETITIONER’S BEHALF; 20 (2) BE ADDRESSED TO THE GOVERNOR; AND 21 (3) CONTAIN A BRIEF HIST ORY OF THE CASE , THE REASONS FOR 22 SEEKING EXECUTIVE CL EMENCY, AND ANY OTHER RELEVA NT INFORMATION THAT 23 THE COMMISSION MAY REQUIR E. 24 (E) THE COMMISSION SHALL GIVE NOTICE OF THE PETITI ON TO THE 25 SENTENCING COURT AND THE RELEVANT STATE’S ATTORNEY. 26 (F) THE COMMISSION SHALL DECI DE THE PETITION WITH IN 30 DAYS AFTER 27 THE DATE THAT IT IS FILED. 28 (G) IF THE COMMISSION FINDS THAT PUBLIC SAFETY WILL NOT BE 29 JEOPARDIZED BY THE R ELEASE OF THE PETITI ONER, THE COMMISSION SHALL 30 RECOMMEND TO THE GOVERNOR THAT THE PET ITIONER BE RELEASED . 31 HOUSE BILL 1342 27 (H) IF THE GOVERNOR DENIES THE R ECOMMENDATION OF THE 1 COMMISSION TO RELEASE THE PETITIONER OR FA ILS TO ISSUE A DECISION O N THE 2 PETITION WITHIN 60 DAYS AFTER THE COMMISSION TRANSMITS ITS 3 RECOMMENDATION TO TH E GOVERNOR, THE PETITIONER MAY A PPEAL THE MATTER 4 TO THE CIRCUIT COURT WHERE THE PETITIONER WAS CONVICTED . 5 (I) IF THE COURT DETERMIN ES THAT IN THE INTER EST OF JUSTICE THE 6 PETITIONER SHOULD BE RELEASED FROM INCARC ERATION, THE COURT SHALL 7 ORDER THE RELEASE OF THE PETITIONER . 8 Article – Health – General 9 TITLE 23. CANNABIS. 10 SUBTITLE 1. DEFINITIONS. 11 23–101. 12 (A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 13 INDICATED. 14 (B) “CANNABIS” HAS THE MEANING STAT ED IN § 5–101 OF THE CRIMINAL 15 LAW ARTICLE. 16 (C) “CANNABIS ACCESSORIES ” MEANS ANY EQUIPMENT , PRODUCTS, OR 17 MATERIALS OF ANY KIN D THAT ARE USED , INTENDED FOR USE , OR DESIGNED FOR 18 USE IN PLANTING , PROPAGATING , CULTIVATING, GROWING, HARVESTING, 19 COMPOSTING , MANUFACTURING , COMPOUNDING , CONVERTING , PRODUCING, 20 PROCESSING, PREPARING, TESTING, ANALYZING, PACKAGING, REPACKAGING , 21 STORING, VAPORIZING, OR CONTAINING CANNAB IS, OR FOR INGESTING , INHALING, 22 OR OTHERWISE INTRODU CING CANNA BIS INTO THE HUMAN B ODY. 23 (D) (1) “CANNABIS CULTIVATION FACILITY” MEANS AN ENTITY 24 REGISTERED TO CULTIV ATE, PREPARE, AND PACKAGE CANNABIS AND SELL 25 CANNABIS TO RETAIL C ANNABIS STORES , TO CANNABIS PRODUCT MANUFACTURING 26 FACILITIES, AND TO OTHER CANNABI S CULTIVATION FACILI TIES, BUT NOT TO 27 CONSUMERS. 28 (2) A CANNABIS CULTIVATION FACILITY MAY PRODUCE CANNABIS 29 CONCENTRATES , TINCTURES, EXTRACTS, OR OTHER CANNABIS PR ODUCTS. 30 (E) “CANNABIS ESTABLISHMEN T” MEANS A CANNABIS CULTIVATION 31 FACILITY, A CANNABIS TESTING F ACILITY, A CANNABIS PRODUCT M ANUFACTURING 32 28 HOUSE BILL 1342 FACILITY, OR A RETAIL CANNABIS STORE. 1 (F) “CANNABIS PRODUCT MANUFACTURIN G FACILITY” MEANS AN ENTITY 2 REGISTERED TO : 3 (1) PURCHASE CANNABIS ; 4 (2) MANUFACTURE , PREPARE, AND PACKAGE CANNABIS PRODUCTS; 5 AND 6 (3) SELL CANNABIS AND CAN NABIS PRODUCTS TO OTHER CA NNABIS 7 PRODUCT MANUFACTURIN G FACILITIES AND TO RETAIL CANNABIS STOR ES, BUT 8 NOT TO CONSUMERS . 9 (G) “CANNABIS PRODUCTS ” MEANS CONCENTRATED CANNABI S PRODUCTS 10 AND CANNABIS PRODUCT S THAT ARE COMPOSED OF CANNABIS AND OTHER 11 INGREDIENTS AND A RE INTENDED FOR USE OR CONSUMPTION , INCLUDING EDIBLE 12 PRODUCTS, OINTMENTS, AND TINCTURES . 13 (H) “CANNABIS TESTING FACI LITY” MEANS AN ENTITY REGI STERED TO 14 ANALYZE AND CERTIFY THE SAFETY AND POTEN CY OF CANNABIS. 15 (I) “CONSUMER” MEANS AN INDIVIDUAL AT LEAST 21 YEARS OLD WHO 16 PURCHASES CANNABIS O R CANNABIS PRODUCTS FOR PERSONAL USE BY 17 INDIVIDUALS AT LEAST 21 YEARS OLD, BUT NOT FOR RESALE T O OTHERS. 18 (J) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF LABOR. 19 (K) “INDUSTRIAL HEMP ” MEANS THE PLANT OF T HE GENUS CANNABIS AND 20 ANY PART OF THE PLAN T, WHETHER GROWING OR N OT, WITH A 21 DELTA–9–TETRAHYDROCANNABINOL CONCENTRATION THAT D OES NOT EXCEED 22 0.3% ON A DRY WEIGHT BASI S. 23 (L) “LOCAL REGULATORY AUTH ORITY” MEANS THE OFFICE OR ENTITY 24 DESIGNATED TO PROCES S CANNABIS ES TABLISHMENT APPLICAT IONS BY A 25 LOCALITY. 26 (M) “LOCALITY” MEANS A COUNTY , A MUNICIPAL CORPORAT ION, OR 27 ANOTHER POLITICAL SU BDIVISION OF THE STATE. 28 (N) “PERSONAL USE AMOUNT ” HAS THE MEANING STAT ED IN § 5–101 OF 29 THE CRIMINAL LAW ARTICLE. 30 HOUSE BILL 1342 29 (O) “RETAIL CANNABIS STORE ” MEANS AN ENTITY REGISTERED TO: 1 (1) PURCHASE CANNABIS FRO M CANNABIS CULTIVATION FACILITI ES; 2 (2) PURCHASE CANNABIS AND CANNABIS PRODUCTS FR OM CANNABIS 3 PRODUCT MANUFACTURIN G FACILITIES; AND 4 (3) SELL CANNABIS AND CAN NABIS PRODUCTS TO CONSUMERS . 5 SUBTITLE 2. CANNABIS REGULATION. 6 23–201. 7 (A) (1) ON OR BEFORE APRIL 1, 2023, THE DEPARTMENT , IN 8 CONSULTATION WITH TH E MARYLAND DEPARTMENT OF AGRICULTURE , SHALL 9 ADOPT REGULATIONS NE CESSARY FOR IMPLEMEN TATION OF THIS TITLE . 10 (2) THE REGULATIONS MAY NOT PROHIBIT THE OPERATION OF 11 CANNABIS ESTABLISHME NTS: 12 (I) EXPRESSLY; OR 13 (II) BY BEING DRAFTED IN SUC H A WAY THAT THE MEASURES 14 NECESSARY TO COMPLY WITH THE REGULATIONS REQUIRE SUCH A HIGH 15 INVESTMENT OF RISK , MONEY, TIME, OR ANY OTHER RESOURC E OR ASSET THAT THE 16 OPERATION OF A CANNA BIS ESTABLISHMENT IS NOT WORTHY OF BEING CARRIED 17 OUT IN PRACTICE BY A REASONABLY PRUDENT B USINESS PERSON . 18 (3) THE REGULATIONS SHALL INCLUDE: 19 (I) PROCEDURES FOR THE ISSU ANCE, RENEWAL, SUSPENSION, 20 AND REVOCATION OF A REGISTRATION TO OPERATE A CANNABI S ESTABLISHMENT ; 21 (II) A SCHEDULE OF APPLICAT ION, REGISTRATION , AND 22 RENEWAL FEES , UNDER WHICH APPLICAT ION FEES MAY NOT EXC EED $5,000, 23 ADJUSTED ANNUALLY FOR INFLATION , UNLESS THE DEPARTMENT AND THE 24 MARYLAND DEPARTMENT OF AGRICULTURE DETERMINE THAT A GRE ATER FEE IS 25 NECESSARY TO CARRY O UT THEIR RESPONSIBILITIES UNDER THIS TITLE ; 26 (III) QUALIFICATIONS FOR RE GISTRATION THAT ARE DIRECTLY 27 AND DEMONSTRABLY REL ATED TO THE OPERATIO N OF A CANNABIS 28 ESTABLISHMENT ; 29 30 HOUSE BILL 1342 (IV) SECURITY REQUIREMENTS FOR CANNABIS 1 ESTABLISHMENTS , INCLUDING FOR THE TR ANSPORTATION OF CANN ABIS BY 2 CANNABIS ESTABLISHME NTS; 3 (V) REQUIREMENTS TO PREVE NT THE SALE OR DIVER SION OF 4 CANNABIS AND CA NNABIS PRODUCTS TO I NDIVIDUALS UNDER THE AGE OF 21 5 YEARS; 6 (VI) LABELING REQUIREMENTS FOR CANNABIS AND CAN NABIS 7 PRODUCTS SOLD OR DIS TRIBUTED BY A CANNAB IS ESTABLISHMENT ; 8 (VII) HEALTH AND SAFETY RULES AND STA NDARDS FOR THE 9 MANUFACTURE OF CANNA BIS PRODUCTS AND THE INDOOR AND OUTDOOR 10 CULTIVATION OF CANNA BIS BY CANNABIS ESTA BLISHMENTS; 11 (VIII) RESTRICTIONS ON THE A DVERTISING AND DISPL AY OF 12 CANNABIS AND CANNABI S PRODUCTS; 13 (IX) PROHIBITIONS AGAINST: 14 1. REQUIRING A CONSUMER TO PROVIDE A RETAIL 15 CANNABIS STORE WITH PERSONAL INFORMATION OTHER THAN 16 GOVERNMENT –ISSUED IDENTIFICATIO N TO DETERMINE THE C ONSUMER’S AGE; AND 17 2. REQUIRING A RETAIL CANNABIS ST ORE TO ACQUIRE 18 AND RECORD PERSONAL INFORMATION ABOUT CONSUMERS ; AND 19 (X) CIVIL VIOLATIONS FOR THE FAILURE TO COMPL Y WITH 20 REGULATIONS ADOPTED UNDER THIS TITLE . 21 (B) ON OR BEFORE APRIL 1, 2023, THE COMPTROLLER SHALL ADO PT 22 REGULATIONS FOR COLL ECTING TAXES LEVIED ON CANNABIS CULTIV ATION 23 FACILITIES. 24 SUBTITLE 3. CANNABIS LICENSING. 25 23–301. 26 (A) (1) EACH APPLICATION OR R ENEWAL APPLICATION F OR AN ANNUAL 27 REGISTRATION TO OPERATE A CANNABI S ESTABLISHMENT SHAL L BE SUBMITTED TO 28 THE DEPARTMENT . 29 (2) A RENEWAL APPLICATION MAY BE SUBMITTED UP TO 90 DAYS 30 HOUSE BILL 1342 31 BEFORE THE EXPIRATION OF TH E CANNABIS ESTABLISH MENT’S REGISTRATION . 1 (B) THE DEPARTMENT SHALL BEGI N ACCEPTING AND PROC ESSING 2 APPLICATIONS TO OPER ATE CANNABIS ESTABLI SHMENTS ON OCTOBER 1, 2023. 3 (C) ON RECEIVING AN APPLICA TION OR A RENEWAL APPLICATION FOR A 4 CANNABIS ESTABLISHME NT, THE DEPARTMENT SHALL IMME DIATELY FORWARD A 5 COPY OF THE APPLICATION AND HALF OF THE APPLICAT ION FEE TO THE LOCAL 6 REGULATORY AUTHORITY FOR THE LOCALITY IN WHICH THE APPLICANT DESIRES 7 TO OPERATE THE CANNA BIS ESTABLISHMENT , UNLESS THE LOCALITY HAS NOT 8 DESIGNATED A LOCAL R EGULATORY AUTHORITY . 9 (D) WITHIN 90 DAYS AFTER RECEIVING AN APPLICATION OR A RENEWAL 10 APPLICATION, THE DEPARTMENT SHALL ISSU E AN ANNUAL REGISTRA TION TO THE 11 APPLICANT, UNLESS: 12 (1) THE DEPARTMENT FINDS THAT THE APPLICANT IS NOT IN 13 COMPLIANCE WITH REGU LATIONS ADOPTED UNDE R SUBTITLE 2 OF THIS TITLE; OR 14 (2) THE DEPARTMENT IS NOTIFIE D BY THE RELEVANT LO CALITY 15 THAT THE APPLICANT I S NOT IN COMPLIANCE WITH ORDIN ANCES AND RULES MADE 16 UNDER SUBTITLE 4 OF THIS TITLE AND IN EFFECT AT THE TIME O F APPLICATION. 17 (E) IF A LOCALITY HAS EST ABLISHED A LIMIT ON THE NUMBER OF 18 CANNABIS ESTABLISHME NTS AND A GREATER NU MBER OF APPLICANTS S EEK 19 REGISTRATION , THE DEPARTMENT SHALL SO LICIT AND CONSIDER I NPUT FROM THE 20 LOCAL REGULATORY AUT HORITY AS TO THE LOC ALITY’S PREFERENCE OR 21 PREFERENCES FOR REGI STRATION. 22 (F) ON DENIAL OF AN APPLI CATION, THE DEPARTMENT SHALL NOTI FY THE 23 APPLICANT IN WRITING OF THE SPECIFIC REAS ON FOR ITS DENIAL . 24 (G) (1) EVERY CANNABIS ESTABL ISHMENT REGISTRATION SHALL 25 SPECIFY THE LOCATION WHERE THE CANNABIS E STABLISHMENT WILL OP ERATE. 26 (2) A SEPARATE REGISTRATIO N IS REQUIRED FOR EACH LO CATION 27 AT WHICH A CANNABIS ESTABLISHMENT OPERAT ES. 28 (H) CANNABIS ESTABLISHMEN TS, AND THE BOOKS AND RE CORDS 29 MAINTAINED AND CREAT ED BY CANNABIS ESTAB LISHMENTS, ARE SUBJECT TO 30 INSPECTION BY THE DEPARTMENT . 31 (I) (1) UNTIL THE DEPARTMENT ADOPTS REG ULATIONS UNDER THIS 32 32 HOUSE BILL 1342 TITLE FOR THE ISSUAN CE OF LICENSES FOR C ANNABIS CULTIVATION FACILITIES 1 AND RETAIL CANNABIS STORES, A MEDICAL CANNABIS G ROWER OR MEDICAL 2 CANNABIS DISPENSARY LICENSED BY THE NATALIE M. LAPRADE MEDICAL 3 CANNABIS COMMISSION SHALL BE C ONSIDERED A LICENSED CANNABIS 4 CULTIVATION FACILITY OR RETAIL CANNABIS S TORE UNDER THIS TITLE. 5 (2) AFTER THE DEPARTMENT ADOPTS REG ULATIONS FOR THE 6 ISSUANCE OF LICENSES FOR CANNABIS CULTIVA TION FACILITIES OR R ETAIL 7 CANNABIS STORES UNDE R THIS TITLE, THE FACILITY OR STOR E MUST OBTAIN A 8 LICENSE UNDER THIS T ITLE. 9 23–302. 10 (A) IN THIS SECTION , “COMMUNITY DISPROPORT IONATELY HARMED BY 11 THE WAR ON DRUGS ” MEANS A CENSUS TRACT OR TRACTS IN WHICH A MAJORITY OF 12 THE POPULATION IS : 13 (1) BLACK OR AFRICAN AMERICAN; 14 (2) AMERICAN INDIAN OR ALASKA NATIVE; OR 15 (3) HISPANIC OR LATINO. 16 (B) AT LEAST 51% OF THE LICENSES ISSU ED BY THE DEPARTMENT FOR 17 CANNABIS CULTIVATION FACILITIES AND RETAI L CANNABIS STORES SH ALL BE IN 18 COMMUNITIES DISPROPO RTIONATELY HARMED BY THE WAR ON DRUGS . 19 (C) THE DEPARTMENT MAY NOT DE NY A LICENSE FOR THE OPERATION OF 20 A CANNABIS CULT IVATION FACILITY OR RETAIL CANNABIS STOR E TO BE LOCATED 21 IN A COMMUNITY DISPR OPORTIONATELY HARMED BY THE WAR ON DRUGS BECAUSE 22 THE APPLICANT HAS PREVIOUSLY BEEN CONVICTED OF A MISDE MEANOR OR 23 FELONY RELATING TO C ONTROLLED DANGEROUS SUBSTANCES. 24 SUBTITLE 4. LOCAL REGULATIONS. 25 23–401. 26 (A) (1) A LOCALITY MAY PROHIBI T THE OPERATION OF A NY OR ALL 27 TYPES OF CANNABIS ES TABLISHMENTS WITHIN ITS JURISDICTION THR OUGH THE 28 ENACTMENT OF AN ORDI NANCE OR THROUGH AN INITIATED OR REFERRE D 29 MEASURE. 30 (2) AN INITIATED OR REF ERRED MEASURE TO PRO HIBIT THE 31 HOUSE BILL 1342 33 OPERATION OF CANNABI S ESTABLISHMENTS MUS T APPEAR ON A GENERA L 1 ELECTION BALLOT . 2 (B) (1) A LOCALITY MAY ENACT O RDINANCES OR REGULAT IONS NOT IN 3 CONFLICT WITH THIS T ITLE, OR WITH REGULATIONS ADOPTED UNDER THIS T ITLE, 4 GOVERNING THE TIME , PLACE, MANNER, AND NUMBER OF CANNAB IS 5 ESTABLISHMENT OPERAT IONS. 6 (2) A LOCALITY MAY PUNISH A VIOLATION OF AN ORDI NANCE OR A 7 REGULATION GOVERNING THE TIME , PLACE, AND MANNER OF OPERAT IONS OF A 8 CANNABIS ESTABLISHME NT AS A CIVIL OFFENS E. 9 (C) (1) A LOCALITY MAY DESIGNA TE A LOCAL REGULATOR Y AUTHORITY 10 THAT IS RESPONSIBLE FOR PROCESSING APPLI CATIONS SUBMITTED FO R A 11 REGISTRATION TO OPER ATE A CANNABIS ESTAB LISHMENT WITHIN THE 12 BOUNDARIES OF THE LO CALITY. 13 (2) THE LOCALITY MAY PROV IDE THAT THE LOCAL R EGULATORY 14 AUTHORITY MAY ISSUE THE REGISTRATIONS IF THE ISSUANCE BY T HE LOCALITY 15 BECOMES NECESSARY BE CAUSE OF A FAILURE B Y THE DEPARTMENT TO ADOPT 16 REGULATIONS UNDER SUBTITLE 2 OF THIS TITLE OR TO ACCEPT OR PROC ESS 17 APPLICATIONS UNDER SUBTITLE 3 OF THIS TITLE. 18 (D) (1) A LOCALITY MAY ESTABLI SH PROCEDURES FOR TH E ISSUANCE, 19 SUSPENSION, OR REVOCATION OF A R EGISTRATION ISSUED B Y THE LOCALITY 20 UNDER SUBSECTION (F) OR (G) OF THIS SECTION. 21 (2) ANY PROCEDURES ESTABL ISHED BY A LOCALITY UNDER 22 PARAGRAPH (1) OF THIS SUBSECTION ARE SUBJEC T TO THE ADMINISTRATIVE 23 PROCEDURE ACT. 24 (E) A LOCALITY MAY ESTABLI SH A SCHEDULE OF ANN UAL OPERATING , 25 REGISTRATION , AND APPLICATION FEES FOR CANNABIS ESTABLI SHMENTS. 26 (F) (1) IF THE DEPARTMENT DOES NOT I SSUE A REGISTRATION TO AN 27 APPLICANT WITHIN 90 DAYS AFTER RECEIPT OF THE APPLI CATION FILED UNDER 28 SUBTITLE 3 OF THIS TITLE AND DOES NOT , IN WRITING AND WITHI N THE 29 APPLICABLE TIME PERI OD, NOTIFY THE APPLICANT OF THE SPECIFIC, PERMISSIBLE 30 REASON FOR ITS DENIA L, OR IF THE DEPARTMENT HAS ADOPTE D REGULATIONS 31 UNDER SUBTITLE 2 OF THIS TITLE AND HAS ACCEPTED APP LICATIONS UNDER 32 SUBTITLE 3 OF THIS TITLE BUT HAS NOT ISSUED A NY REGISTRATIONS ON OR 33 BEFORE JANUARY 1, 2024, THE APPLICANT MAY RE SUBMIT ITS APPLICATI ON 34 DIRECTLY TO THE LOCAL REGUL ATORY AUTHORITY UNDE R SUBSECTION (C) OF THIS 35 34 HOUSE BILL 1342 SECTION AND THE LOCA L REGULATORY AUTHORI TY MAY ISSUE AN ANNU AL 1 REGISTRATION TO THE APPLICANT. 2 (2) IF AN APPLICATION IS SUBMITTED TO A LOCAL REGULATORY 3 AUTHORITY UNDER THIS SUBSECTION, THE DEPARTMENT SHALL FORW ARD TO THE 4 LOCAL REGULATORY AUT HORITY THE APPLICATI ON FEE PAID BY THE A PPLICANT 5 TO THE DEPARTMENT ON REQUEST OF THE LOCAL REGULAT ORY AUTHORITY . 6 (G) IF THE DEPARTMENT DOES NOT A DOPT RULES REQUIRED UNDER 7 SUBTITLE 3 OF THIS TITLE, AN APPLICANT MAY SUBMIT A N APPLICATION DIRECT LY 8 TO A LOCAL REGULATOR Y AUTHORITY ON OR AF TER OCTOBER 1, 2023, AND THE 9 LOCAL REGULATORY AUT HORITY MAY ISSUE AN ANNUAL REGISTRATION TO THE 10 APPLICANT. 11 (H) (1) A LOCAL REGULATORY AUT HORITY ISSUING A REG ISTRATION TO 12 AN APPLICANT SHALL DO SO WITHIN 90 DAYS AFTER RECEIPT OF THE SUBMI TTED 13 OR RESUBMITTED APPLI CATION, UNLESS THE LOCAL REG ULATORY AUTHORITY 14 FINDS AND NOTIFIES T HE APPLICANT THAT TH E APPLICANT IS NOT I N COMPLIANCE 15 WITH ORDINANCES AND REGULATIONS ADOPTED UNDER SUBSECTION (B) OF THIS 16 SECTION IN EFFECT AT THE TIME THE APPLICA TION IS SUBMITTED TO THE LOCAL 17 REGULATORY AUTHORITY . 18 (2) THE LOCALITY SHALL NO TIFY THE DEPARTMENT IF AN ANNU AL 19 REGISTRATION HAS BEE N ISSUED TO AN APPLICANT. 20 (I) (1) A REGISTRATION ISSUED BY A LOCALITY UNDER SUBSECTION (F) 21 OR (G) OF THIS SECTION HAS THE SAME FORCE AND E FFECT AS A REGISTRAT ION 22 ISSUED BY THE DEPARTMENT UNDER SUBTITLE 3 OF THIS TITLE. 23 (2) THE HOLDER OF THE REG ISTRATION IS NOT SUB JECT TO 24 REGULATION OR ENFORCEMENT BY THE DEPARTMENT DURING THE TERM OF THE 25 REGISTRATION . 26 (J) A SUBSEQUENT OR RENEWE D REGISTRATION MAY B E ISSUED UNDER 27 SUBSECTION (F) OF THIS SECTION ON A N ANNUAL BASIS ONLY ON RESUBMISSION TO 28 THE LOCALITY OF A NE W APPLICATION SUBMIT TED TO THE DEPARTMENT UNDER 29 SUBTITLE 3 OF THIS TITLE. 30 (K) A SUBSEQUENT OR RENEWE D REGISTRATION MAY BE I SSUED UNDER 31 SUBSECTION (G) OF THIS SECTION ON A N ANNUAL BASIS IF THE DEPARTMENT : 32 (1) HAS NOT ADOPTED REGULATI ONS REQUIRED UNDER SUBTITLE 2 33 OF THIS TITLE AT LEAST 90 DAYS BEFORE THE SUBS EQUENT OR RENEWED 34 HOUSE BILL 1342 35 REGISTRATION WOULD B E EFFECTIVE; OR 1 (2) HAS ADOPTED REGULATIONS UNDER SUBTITLE 2 OF THIS TITLE 2 BUT HAS NOT, AT LEAST 90 DAYS AFTER THE ADOPT ION OF THOSE REGULAT IONS, 3 ISSUED REGISTRATIONS UNDER SUBTITLE 3 OF THIS TITLE. 4 (L) A LOCALITY MAY CREATE A LICENSE FOR OR PRO HIBIT ON–SITE 5 CONSUMPTION OF CANNA BIS BY INDIVIDUALS WHO ARE LEGALLY ABLE TO 6 PURCHASE CANNABIS AT A RETAIL CANNABIS ST ORE. 7 (M) THIS SECTION DOES NOT LIMIT THE RELIEF AVA ILABLE TO AN 8 AGGRIEVED PARTY UNDE R THE ADMINISTRATIVE PROCEDURE ACT. 9 (N) A LOCALITY MAY NOT REG ULATE THE POSSESSION , SALE, TRANSFER, OR 10 CULTIVATION OF CANNA BIS IN A MANNER THAT IS LESS RESTRICTIVE THAN THE 11 REGULATION BY THE STATE OF THE POSSESSI ON, SALE, TRANSFER, OR 12 CULTIVATION OF CANNA BIS UNDER THIS TITLE. 13 SUBTITLE 5. CRIMINAL AND CIVIL IMMUNITIES AND LIABILITIES. 14 23–501. 15 NOTWITHSTANDING ANY O THER PROVISION OF LA W AND EXCEPT AS 16 OTHERWISE PROVIDED I N THIS SUBTITLE , THE FOLLOWING ACTS A RE NOT 17 UNLAWFUL UNDER STATE LAW OR THE LAW OF ANY PO LITICAL SUBDIVISION OF THE 18 STATE OR A BASIS FOR SEIZURE OR FORFEITUR E OF ASSETS UNDER STATE LAW FOR 19 INDIVIDUALS WHO ARE AT LEAST 21 YEARS OLD: 20 (1) POSSESSING, CONSUMING , USING, DISPLAYING, PURCHASING , OR 21 TRANSPORTING CANNABI S ACCESSORIES; 22 (2) POSSESSING, GROWING, PROCESSING, OR TRANSPORTING ON 23 ONE’S OWN PREMISES NO T MORE THAN 24 MATURE CANNABIS PLAN TS AND 24 POSSESSION OF THE CA NNABIS PRODUCED BY T HE PLANTS ON THE PRE MISES 25 WHERE THE PLANTS WER E GROWN; 26 (3) POSSESSING OUTSIDE ON E’S OWN PREMISES NO T MORE THAN 224 27 GRAMS OF CANNABIS ; OR 28 (4) ASSISTING ANOTHER IND IVIDUAL WHO IS AT LE AST 21 YEARS OLD 29 IN AN ACT DESCRIBED IN ITEMS (1) THROUGH (3) OF THIS SECTION. 30 23–502. 31 36 HOUSE BILL 1342 (A) NOTWITHSTANDING ANY O THER PROVISION OF LA W, IT IS NOT 1 UNLAWFUL UNDER STATE LAW OR THE LAW OF A POLITICAL SUBDIVISIO N OF THE 2 STATE OR A BASIS FOR SEIZURE OR FORFEITUR E OF ASSETS FOR AN I NDIVIDUAL 3 WHO IS AT LEAST 21 YEARS OLD TO MANUFAC TURE, POSSESS, OR PURCHASE 4 CANNABIS ACCESSORIES OR TO DISTRIBUTE OR SELL CANNABIS ACCESS ORIES TO AN 5 INDIVIDUAL WHO IS AT LEAST 21 YEARS OLD. 6 (B) EXCEPT AS PROVIDED IN THIS SECTION, AN INDIVIDUAL WHO IS AT 7 LEAST 21 YEARS OLD MAY MANUFA CTURE, POSSESS, AND PURCHASE CANNABI S 8 ACCESSORIES AND DIST RIBUTE OR SELL CANNA BIS ACCESSORIES TO A PERSON WHO 9 IS AT LEAST 21 YEARS OLD. 10 23–503. 11 NOTWITHSTANDING ANY OT HER PROVISION OF LAW , THE FOLLOWING ACTS , 12 WHEN PERFORMED BY A RETAIL CANNABIS STOR E WITH A CURRENT , VALID 13 REGISTRATION , OR AN INDIVIDUAL WHO IS AT LEAST 21 YEARS OLD ACTING IN THE 14 CAPACITY AS AN OWNER , EMPLOYEE, OR AGENT OF A RETAIL CANNABIS STORE , ARE 15 NOT UNLAWFUL UNDER STATE LAW OR THE LAW OF A POLITICAL SUBDI VISION OF 16 THE STATE OR A BASIS FOR SEIZURE OR FORFEITUR E OF ASSETS: 17 (1) POSSESSING, DISPLAYING, STORING, OR TRANSPORTING 18 CANNABIS OR CANNABIS PRODUCTS, IF THE CANNABIS OR CANNABIS PRODUCTS AR E 19 NOT DISPLAYED IN A M ANNER THAT IS VISIBL E TO THE GENERAL PUB LIC FROM A 20 PUBLIC RIGHT–OF–WAY; 21 (2) PURCHASING CANNABIS FROM A CANN ABIS CULTIVATION 22 FACILITY; 23 (3) PURCHASING CANNABIS O R CANNABIS PRODUCTS FROM A 24 CANNABIS PRODUCT MAN UFACTURING FACILITY ; AND 25 (4) DELIVERING, DISTRIBUTING, OR SELLING CANNABIS OR 26 CANNABIS PRODUCTS TO CONSUMERS . 27 23–504. 28 NOTWITHSTANDING ANY O THER PROVISION OF LA W, THE FOLLOWING ACTS , 29 WHEN PERFORMED BY A C ANNABIS CULTIVATION FACILITY WITH A CURR ENT, VALID 30 REGISTRATION , OR AN INDIVIDUAL WHO IS AT LEAST 21 YEARS OLD ACTING IN THE 31 CAPACITY AS AN OWNER , EMPLOYEE, OR AGENT OF A CANNABIS CULTIVATION 32 FACILITY, ARE NOT UNLAWFUL UND ER STATE LAW O R THE LAW OF A POLIT ICAL 33 HOUSE BILL 1342 37 SUBDIVISION OF THE STATE OR A BASIS FOR SEIZURE OR FORFEITUR E OF ASSETS: 1 (1) CULTIVATING, HARVESTING, PROCESSING, PACKAGING, 2 TRANSPORTING , DISPLAYING, STORING, OR POSSESSING CANNAB IS; 3 (2) DELIVERING OR TRANSFE RRING CANNABIS TO A CANNABIS 4 TESTING FACILITY ; 5 (3) DELIVERING, DISTRIBUTING, OR SELLING CANNABIS TO A 6 CANNABIS CULTIVATION FACILITY, A CANNABIS PRODUCT M ANUFACTURING 7 FACILITY, OR A RETAIL CANNABIS STORE; 8 (4) RECEIVING OR PURCHASI NG CANNABIS FROM A C ANNABIS 9 CULTIVATION FACILITY; AND 10 (5) RECEIVING CANNABIS SE EDS OR IMMATURE CANN ABIS PLANTS 11 FROM AN INDIVIDUAL W HO IS AT LEAST 21 YEARS OLD. 12 23–505. 13 NOTWITHSTANDING ANY O THER PROVISION OF LA W, THE FOLLOWING ACTS , 14 WHEN PERFORMED BY A CANNABIS PRODUCT MANUFACTURIN G FACILITY WITH A 15 CURRENT, VALID REGISTRATION , OR AN INDIVIDUAL WHO IS AT LEAST 21 YEARS OLD 16 ACTING IN THE CAPACI TY AS AN OWNER , EMPLOYEE, OR AGENT OF A CANNAB IS 17 PRODUCT MANUFACTURIN G FACILITY, ARE NOT UNLAWFUL UND ER STATE LAW OR 18 THE LAW OF A POLITICAL SUB DIVISION OF THE STATE OR A BASIS FOR SEIZURE OR 19 FORFEITURE OF ASSETS : 20 (1) PACKAGING, PROCESSING, TRANSPORTING , MANUFACTURING , 21 DISPLAYING, OR POSSESSING CANNAB IS OR CANNABIS PRODU CTS; 22 (2) DELIVERING OR TRANSFE RRING CANNABIS OR CA NNABIS 23 PRODUCTS TO A CANNAB IS TESTING FACILITY; 24 (3) DELIVERING OR SELLING CANNABIS OR CANNABIS PRODUCTS TO 25 A RETAIL CANNABIS ST ORE OR A CANNABIS PR ODUCT MANUFACTURING FACILITY; 26 (4) PURCHASING CANNABIS F ROM A CANNABIS CULTI VATION 27 FACILITY; 28 (5) PURCHASING CANNABIS OR CAN NABIS PRODUCTS FROM A 29 CANNABIS PRODUCT MAN UFACTURING FACILITY ; AND 30 38 HOUSE BILL 1342 (6) LEASING OR OTHERWISE ALLOWING THE USE OF PROPERTY 1 OWNED, OCCUPIED, OR CONTROLLED BY ANY PERSON FOR ANY OF THE ACTIVITIE S 2 CONDUCTED LAWFULLY U NDER ITEMS (1) THROUGH (5) OF THIS SECTION. 3 23–506. 4 NOTWITHSTANDING ANY O THER PROVISION OF LA W, THE FOLLOWING ACTS , 5 WHEN PERFORMED BY A CANNABIS TESTING FAC ILITY WITH A CURRENT , VALID 6 REGISTRATION , OR AN INDIVIDUAL WHO IS AT LEAST 21 YEARS OLD ACTING IN THE 7 CAPACITY AS AN O WNER, EMPLOYEE, OR AGENT OF A CANNABIS TESTING FAC ILITY, 8 ARE NOT UNLAWFUL UND ER STATE LAW OR THE LAW OF A POLITICAL SUBDI VISION 9 OF THE STATE OR A BASIS FOR SEIZURE OR FORFEITUR E OF ASSETS: 10 (1) POSSESSING, CULTIVATING, PROCESSING, REPACKAGING , 11 STORING, TRANSPORTING , OR DISPLAYING CANNAB IS; 12 (2) RECEIVING CANNABIS FR OM A CANNABIS CULTIV ATION FACILITY, 13 A CANNABIS RETAIL ST ORE, A CANNABIS PRODUCTS MANUFACTURER , OR AN 14 INDIVIDUAL WHO IS AT LEAST 21 YEARS OLD; 15 (3) RETURNING CANNABIS TO A CANNABIS CULTIVAT ION FACILITY, 16 CANNABIS RETAIL STOR E, CANNABIS PRODUCTS MA NUFACTURER , OR AN 17 INDIVIDUAL WHO IS AT LEAST 21 YEARS OLD; AND 18 (4) LEASING OR OTHERWISE ALLOWING THE USE OF PROPERTY 19 OWNED, OCCUPIED, OR CONTROLLED BY ANY PERSON FOR ANY OF TH E ACTIVITIES 20 CONDUCTE D LAWFULLY UNDER ITE MS (1) THROUGH (3) OF THIS SECTION. 21 23–507. 22 THIS TITLE DOES NOT : 23 (1) REQUIRE AN EMPLOYER T O ALLOW OR ACCOMMODA TE THE USE, 24 CONSUMPTION , POSSESSION, TRANSFER, DISPLAY, TRANSPORTATION , SALE, OR 25 GROWING OF CANNABIS IN THE WORKPLACE ; OR 26 (2) AFFECT THE ABILITY OF EMPLOYERS TO HAVE PO LICIES 27 RESTRICTING THE USE OF CANNABIS BY EMPLO YEES OR TO DISCIPLIN E EMPLOYEES 28 WHO ARE UNDER THE IN FLUENCE OF CANNABIS IN THE WORKPLACE . 29 23–508. 30 THIS TITLE DOES NOT AUTHORIZE T HE TRANSFER OF CANNA BIS, WITH OR 31 HOUSE BILL 1342 39 WITHOUT REMUNERATION , TO AN INDIVIDUAL UND ER THE AGE OF 21 YEARS OR TO 1 ALLOW A PERSON UNDER THE AGE OF 21 YEARS TO PURCHASE , POSSESS, USE, 2 TRANSPORT, GROW, OR CONSUME CANNABIS . 3 23–509. 4 THIS TITLE DOES NOT P ROHIBIT A PERSON , AN EMPLOYER, A SCHOOL, A 5 HOSPITAL, A CORRECTIONAL FACILIT Y, A CORPORATION , OR ANY OTHER ENTITY 6 THAT OCCUPIES , OWNS, OR CONTROLS PROPERTY FROM PROHIBITING OR 7 OTHERWISE LIMITING THE POSSESS ION, CONSUMPTION , USE, DISPLAY, TRANSFER, 8 DISTRIBUTION, SALE, TRANSPORTATION , OR GROWING OF CANNABIS ON OR IN THAT 9 PROPERTY. 10 23–510. 11 (A) SCIENTIFIC AND MEDICA L RESEARCHERS WHO HA VE PREVIOUSLY 12 PUBLISHED MAY PURCHA SE, POSSESS, AND SECURELY STORE C ANNABIS FOR 13 PURPOSES OF CONDUCTI NG RESEARCH . 14 (B) SCIENTIFIC AND MEDICA L RESEARCHERS MAY AD MINISTER AND 15 DISTRIBUTE CANNABIS TO PARTICIPANTS IN R ESEARCH WHO ARE AT L EAST 21 16 YEARS OLD AFTER RECEIVING INFO RMED CONSENT FROM TH E SUBJECTS. 17 23–511. 18 THE ATTORNEY GENERAL SHALL ZEALOUS LY AND IN GOOD FAITH ADVOCATE 19 TO QUASH ANY FEDERAL SUBPOENA FOR RECORDS INVOLVING CANNABIS 20 ESTABLISHMENTS . 21 SUBTITLE 6. CONSTRUCTION OF TITLE. 22 23–601. 23 THIS TITLE MAY NOT BE CONSTRUED TO AUTHORI ZE AN INDIVIDUAL TO 24 ENGAGE IN, AND DOES NOT PREVENT THE IMPOSITION OF AN Y CIVIL, CRIMINAL, OR 25 OTHER PENALTIES FOR : 26 (1) UNDERTAKING A TASK WH ILE UNDER THE INFLUE NCE OF 27 CANNABIS, WHEN DOING SO WOULD CONSTITUTE NEGLIGENC E OR PROFESSIONAL 28 MALPRACTICE ; 29 (2) OPERATING, NAVIGATING, OR BEING IN ACTUAL P HYSICAL 30 CONTROL OF A MOTOR V EHICLE, AN AIRCRAFT, OR A BOAT WHILE UNDER THE 31 40 HOUSE BILL 1342 INFLUENCE OF CANNABI S; 1 (3) SMOKING CANNABIS IN A PUBLIC PLACE; OR 2 (4) POSSESSING CANNABIS , INCLUDING CANNABIS P RODUCTS, IN A 3 LOCAL DETENTION FACI LITY, COUNTY JAIL, STATE PRISON, REFORMATORY , OR 4 OTHER CORRECTIONAL F ACILITY, INCLUDING A FACILITY FOR THE DETENTION OF 5 JUVENILE OFFENDERS . 6 23–602. 7 THIS TITLE MAY NOT BE CONSTRUED TO LIMIT ANY PRIVILE GES OR RIGHTS OF 8 A MEDICAL CANNABIS –QUALIFYING PATIENT , CAREGIVER, DISPENSARY, 9 DISPENSARY AGENT , GROWER, MEDICAL CANNABIS GROWER AGENT , PROCESSOR, 10 OR PROCESSOR AGENT U NDER TITLE 13, SUBTITLE 33 OF THIS ARTICLE. 11 Article – Tax – General 12 TITLE 12.5. CANNABIS TAX. 13 12.5–101. 14 (A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 15 INDICATED. 16 (B) “CANNABIS CULTIVATION FACILITY” HAS THE MEANING STAT ED IN § 17 23–101 OF THE HEALTH – GENERAL ARTICLE. 18 (C) “CANNABIS PRODUCT MANU FACTURING FACILITY ” HAS THE MEANING 19 STATED IN § 23–101 OF THE HEALTH – GENERAL ARTICLE. 20 (D) “RETAIL CANNABIS STORE ” HAS THE ME ANING STATED IN § 23–101 OF 21 THE HEALTH – GENERAL ARTICLE. 22 12.5–102. 23 (A) THIS SECTION IS NOT A PPLICABLE TO MEDICAL CANNABIS SOLD UNDER 24 TITLE 13, SUBTITLE 33 OF THE HEALTH – GENERAL ARTICLE. 25 (B) A 10% EXCISE TAX IS IMPOSE D ON THE SALE OR TRA NSFER OF CANNABIS 26 FROM A CANNABIS CULTIVATION FACILITY TO A RETAIL CANNABIS STORE OR 27 CANNABIS PRODUCT MAN UFACTURING FACILITY . 28 HOUSE BILL 1342 41 (C) (1) THE COMPTROLLER SHALL ADJ UST THE EXCISE TAX R ATE SET 1 FORTH IN SUBSECTION (B) OF THIS SECTION ANNU ALLY TO ACCOUNT FOR 2 INFLATION OR DEFLATION BASED ON T HE CONSUMER PRICE INDEX FOR ALL 3 URBAN CONSUMERS ISSUED BY T HE UNITED STATES DEPARTMENT OF LABOR. 4 (2) IF THE EXCISE TAX RAT E IS CHANGED UNDER T HIS SUBSECTION , 5 THE COMPTROLLER SHALL PUBLISH THE AD JUSTED RATE ON THE COMPTROLLER ’S 6 WEBSITE AND IN A NEWSPAPE R OF GENERAL CIRCULA TION IN THE STATE NOT LESS 7 THAN 60 DAYS BEFORE THE EFFECTIVE DATE O F THE RATE ADJUSTMEN T. 8 (D) (1) ON OR BEFORE THE 15TH DAY OF EACH MONTH , EACH CANNABIS 9 CULTIVATION FACILITY SHALL PAY TO THE COMPTROLLER THE EXCIS E TAX DUE 10 UNDER THIS SECTION O N SALES AND TRANSFER S OF CANNABIS MADE B Y THAT 11 CANNABIS CULTIVATION FACILITY IN THE IMME DIATELY PRECEDING CA LENDAR 12 MONTH. 13 (2) PAYMENT SHALL BE ACCO MPANIED BY A RETURN FILED IN THE 14 FORM AND MANNER PRES CRIBED BY THE COMPTROLLER AND CONTAINING THE 15 INFORMATION THAT THE COMPTROLLER REQUIRE S. 16 (3) THE RETURN SHALL BE A CCOMPANIED BY APPROP RIATE 17 COMPUTER –GENERATED MAGNETIC M EDIA SUPPORTING SCHE DULE DATA IN THE 18 FORMAT REQUIRED BY T HE COMPTROLLER , UNLESS, AS PROVIDED BY 19 REGULATION , THE COMPTROLLER GRANTS AN EXCEPTION ON PETITIO N OF A 20 TAXPAYER. 21 12.5–103. 22 (A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 23 INDICATED. 24 (2) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF 25 LABOR. 26 (3) “FUND” MEANS THE CANNABIS REGULATION FUND. 27 (B) THERE IS A CANNABIS REGULATION FUND. 28 (C) THE PURPOSE OF THE FUND IS TO PROVIDE FU NDS TO BE DISTRIBUTE D 29 AND USED IN ACCORDAN CE WITH SUBSECTION (L) OF THIS SECTION. 30 (D) THE DEPARTMENT SHALL ADMINISTER THE FUND. 31 42 HOUSE BILL 1342 (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 1 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 2 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 3 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 4 (F) THE FUND CONSISTS OF : 5 (1) ALL APPLICATION AND LICENSING FEES PAID B Y CANNABIS 6 ESTABLISHMENTS UNDER TITLE 23, SUBTITLE 3 OF THE HEALTH – GENERAL 7 ARTICLE; 8 (2) ALL TAXES COLLECTED UNDER § 12.5–102 OF THIS TITLE; AND 9 (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 10 THE BENEFIT OF THE FUND, IN ACCORDANCE WITH A NY CONDITIONS ADOPTE D BY 11 THE DEPARTMENT FOR THE ACCEPTANCE OF DO NATIONS OR GIFTS TO THE FUND. 12 (G) THE FUND MAY BE USED ONLY FOR CARRYING OUT THI S TITLE. 13 (H) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN 14 THE SAME MANNER AS O THER STATE MONEY MAY BE IN VESTED. 15 (I) THE COMPTROLLER SHALL PAY OUT MONEY FROM THE FUND AS 16 DIRECTED BY THE DEPARTMENT . 17 (J) THE FUND IS SUBJECT TO AU DIT BY THE OFFICE OF LEGISLATIVE 18 AUDITS AS PROVIDED FO R IN § 2–1220 OF THE STATE GOVERNMENT ARTICLE. 19 (K) ON OR BEFORE MARCH 15 EACH YEAR, THE DEPARTMENT SHALL 20 PRODUCE AND PUBLISH ON ITS WEBSITE A DET AILED REPORT ON REVE NUES AND 21 EXPENDITURES FROM TH E FUND, INCLUDING A DETAILED REPORTING OF MONEY 22 RETAINED AND SPENT T O DEFRAY THE COST OF ADMINISTR ATION OF THIS TITLE . 23 (L) THE FUND SHALL BE DISTRIB UTED AS FOLLOWS : 24 (1) THE DEPARTMENT SHALL RETAIN SUFFICI ENT MONEY TO DEFRAY 25 THE ENTIRE COST OF A DMINISTRATION OF THI S TITLE; AND 26 (2) REVENUES GENERATED I N EXCESS OF THE AMOU NT OF THOSE 27 NECESSARY TO DEFRAY THE ENTIRE COST OF A DMINISTRATION OF THI S TITLE 28 SHALL BE DISTRIBUTED NOT LESS THAN ONCE E VERY QUARTER AS FOLL OWS: 29 HOUSE BILL 1342 43 (I) 30% TO THE STATE DEPARTMENT OF EDUCATION TO BE 1 USED AT THE DISCRETI ON OF THE STATE BOARD OF EDUCATION FOR ITS DUTIES 2 PRESCRIBED BY LAW ; 3 (II) 5% TO THE MARYLAND DEPARTMENT OF HEALTH FOR USE 4 IN VOLUNTARY PROGRAM S FOR THE TREATMENT OF ALCOHOL , TOBACCO, AND 5 CANNABIS ABUSE ; 6 (III) 5% TO THE MARYLAND DEPARTMENT OF HEALTH FOR A 7 SCIENTIFICALLY AND M EDICALLY ACC URATE PUBLIC EDUCATI ON CAMPAIGN TO 8 EDUCATE YOUTH AND AD ULTS ABOUT THE HEALT H AND SAFETY RISKS O F ALCOHOL, 9 TOBACCO, AND CANNABIS ; 10 (IV) 7.5% TO THE MARYLAND STATE RETIREMENT AND 11 PENSION SYSTEM; 12 (V) 2.5% TO THE DEPARTMENT OF STATE POLICE FOR THE 13 EMPLOYMENT AND TRAIN ING OF DRUG RECOGNIT ION EXPERTS; AND 14 (VI) 50% TO THE GENERAL FUND OF THE STATE. 15 12.5–104. 16 NOTWITHSTANDING ANY F EDERAL TAX LAW TO TH E CONTRARY , IN 17 COMPUTING NET INCOME FOR BUSINESSES EXEMP TED FROM CRIMINAL PE NALTIES 18 UNDER STATE LAW, THERE SHALL BE ALLOW ED AS A DEDUCTION FR OM STATE 19 TAXES ALL THE ORDINA RY AND NECESSARY EXP ENSES PAID OR INCURR ED DURING 20 THE TAXABLE YEAR IN CARRYING ON A TRADE OR BUSINESS AS A CAN NABIS 21 ESTABLISHMENT AS DEF INED BY § 23–101 OF THE HEALTH – GENERAL ARTICLE, OR 22 AN ENTITY LICENSED U NDER TITLE 13, SUBTITLE 33 OF THE HEALTH – GENERAL 23 ARTICLE, INCLUDING REASONABLE ALLOWANCE F OR SALARIES OR OTHER 24 COMPENSATION FOR PER SONAL SERVICES ACTUA LLY RENDERED . 25 12.5–105. 26 (A) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 27 IN THIS SECTION, “LOCAL COMMUNITY ” MEANS AN AREA LOCATE D WITHIN A 5–MILE 28 RADIUS OF A FACILITY ’S OR STORE’S LOCATION. 29 (2) IN A REGION WITH A POPULATION OF MORE T HAN 10,000 PEOPLE 30 PER SQUARE MILE AND A TOTAL POPULATION O F OVER 75,000, “LOCAL 31 COMMUNITY ” MEANS AN AREA LOCATE D WITHIN A 1–MILE RADIUS OF A FAC ILITY’S 32 OR STORE’S LOCATION. 33 44 HOUSE BILL 1342 (B) AT LEAST 10% OF THE NET INCOME FROM A CANNABIS CULTIVATI ON 1 FACILITY, RETAIL CANNABIS STOR E, OR AN ON–SITE CONSUMPTION FAC ILITY SHALL 2 BE REINVESTED IN THE LOCAL COMMUNITY WHER E THE FACILITY OR STOR E 3 OPERATES. 4 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 5 October 1, 2022. 6