Maryland 2022 Regular Session

Maryland Senate Bill SB628 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0628
6	6
7	7	SENATE BILL 628
8	8	J1 2lr2821
9	9
10	10	By: Senator Patterson
11	11	Introduced and read first time: February 3, 2022
12	12	Assigned to: Finance
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Medical Cannabis – Grower License – Number and Licensed Processors 2
19	19
20	20	FOR the purpose of altering the maximum number of medical cannabis growers that may 3
21	21	be licensed by the Natalie M. LaPrade Medical Cannabis Commission; providing that 4
22	22	a grower may operate in a facility that does not exceed a certain number of square 5
23	23	feet; authorizing a licensed processor to apply for licensure as a medical cannabis 6
24	24	grower; and generally relating to grower licenses issued by the Natalie M. LaPrade 7
25	25	Medical Cannabis Commission. 8
26	26
27	27	BY repealing and reenacting, with amendments, 9
28	28	Article – Health – General 10
29	29	Section 13–3306(a)(2) and (d) 11
30	30	Annotated Code of Maryland 12
31	31	(2019 Replacement Volume and 2021 Supplement) 13
32	32
33	33	BY adding to 14
34	34	Article – Health – General 15
35	35	Section 13–3309.1 16
36	36	Annotated Code of Maryland 17
37	37	(2019 Replacement Volume and 2021 Supplement) 18
38	38
39	39	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
40	40	That the Laws of Maryland read as follows: 20
41	41
42	42	Article – Health – General 21
43	43
44	44	13–3306. 22
45	45
46	46	(a) (2) (i) Subject to subparagraph (ii) of this paragraph, the Commission 23
47	47	may license no more than [22] 42 medical cannabis growers. 24 2 SENATE BILL 628
48	48
49	49
50	50
51	51	(ii) 1. If an applicant for licensure that received Stage One 1
52	52	preapproval in calendar year 2016 for a medical cannabis grower license fails to satisfy the 2
53	53	requirements for licensure established by the Commission, the Commission shall rescind 3
54	54	the applicant’s Stage One preapproval. 4
55	55
56	56	2. If the Commission rescinds the Stage One preapproval for 5
57	57	a license of an applicant under subsubparagraph 1 of this subparagraph, the maximum 6
58	58	number of medical cannabis grower licenses authorized under subparagraph (i) of this 7
59	59	paragraph shall be reduced by one medical cannabis grower license. 8
60	60
61	61	(iii) 1. Subject to subsubparagraph 2 of this subparagraph, 9
62	62	beginning December 1, 2024, the Commission may report to the General Assembly, in 10
63	63	accordance with § 2–1257 of the State Government Article, on the number of licenses 11
64	64	necessary to meet the demand for medical cannabis by qualifying patients and caregivers 12
65	65	issued identification cards under this subtitle in an affordable, accessible, secure, and 13
66	66	efficient manner. 14
67	67
68	68	2. Before the Commission determines to submit the report 15
69	69	described under subsubparagraph 1 of this subparagraph, the Commission shall provide 16
70	70	the Legislative Policy Committee at least 30 days to submit comments to the Commission. 17
71	71
72	72	(iv) The Commission shall establish an application review process for 18
73	73	granting medical cannabis grower licenses in which applications are reviewed, evaluated, 19
74	74	and ranked based on criteria established by the Commission. 20
75	75
76	76	(v) A person may not have an ownership interest in or control of, 21
77	77	including the power to manage and operate, more than one grower. 22
78	78
79	79	(vi) A grower shall pay an application fee in an amount to be 23
80	80	determined by the Commission consistent with this subtitle. 24
81	81
82	82	(d) An entity licensed to grow medical cannabis under this section [shall]: 25
83	83
84	84	(1) SHALL ensure that safety precautions established by the Commission 26
85	85	are followed by any facility operated by the grower; AND 27
86	86
87	87	(2) MAY OPERATE IN A FACI LITY THAT DOES NOT E XCEED 10,000 28
88	88	SQUARE FEET . 29
89	89
90	90	13–3309.1. 30
91	91
92	92	(A) A PROCESSOR LICENSED B Y THE COMMISSION UNDER § 13–3303 OF 31
93	93	THIS SUBTITLE MAY APPLY FOR LICENS URE AS A GROWER . 32
94	94
95	95	(B) TO BE LICENSED AS A G ROWER, A LICENSED PROCESSOR A PPLICANT 33 SENATE BILL 628 3
96	96
97	97
98	98	SHALL SUBMIT TO THE COMMISSION: 1
99	99
100	100	(1) PROOF OF ADEQUATE CAP ITAL THROUGH A CERTIFIED 2
101	101	FINANCIAL STATEMENT ; 3
102	102
103	103	(2) IF APPLICABLE , PROOF THAT THE APPLI CANT QUALIFIES AS A 4
104	104	MINORITY BUSINESS ENTERPRISE , AS DEFINED IN § 14–301 OF THE STATE FINANCE 5
105	105	AND PROCUREMENT ARTICLE, OR IS A SMALL, MINORITY, OR 6
106	106	WOMEN–OWNED BUSINESS ENTITY; 7
107	107
108	108	(3) PROOF OF CONTROL OF T HE PREMISES AT WHICH THE APPLICANT 8
109	109	WILL OPERATE AS A GR OWER THROUGH OWNERSHIP OR A LEASE WITH A MINIM UM 9
110	110	TERM OF 5 YEARS; 10
111	111
112	112	(4) A SECURITY PLAN THAT I NCLUDES LIGHTING , ALARMS, AND 11
113	113	PERSONNEL ; 12
114	114
115	115	(5) A STANDARD OPERATING P ROCEDURE PLAN THAT I NCLUDES 13
116	116	CULTIVATION, GROWTH, AND PACKAGING; 14
117	117
118	118	(6) A BUSINESS PLAN DEMONS TRATING THE APPLICAN T’S ABILITY TO 15
119	119	SUCCEED; AND 16
120	120
121	121	(7) AN APPLICATION FEE IN THE AMOUNT OF $10,000. 17
122	122
123	123	(C) (1) THE COMMISSION SHALL: 18
124	124
125	125	(I) TO THE EXTENT AUTHORIZED UNDER FEDERAL AND STATE 19
126	126	LAW, ACTIVELY SEEK TO ACHIEVE RACIAL, ETHNIC, GENDER, AND GEOGRAPHIC 20
127	127	DIVERSITY WHEN LICENSING PROCESSORS AS GROWERS; AND 21
128	128
129	129	(II) ENCOURAGE PROCESSORS WHO QUALIFY AS A MINORITY 22
130	130	BUSINESS ENTERPRISE, AS DEFINED IN § 14–301 OF THE STATE FINANCE AND 23
131	131	PROCUREMENT ARTICLE, OR AS A SMALL, MINORITY, OR WOMEN–OWNED BUSINESS 24
132	132	ENTITY TO APPLY FOR LICENSURE AS GROWERS. 25
133	133
134	134	(2) BEGINNING OCTOBER 1, 2022, A PROCESSOR LICENSED UNDER 26
135	135	THIS SECTION TO OPERATE AS A GROWER SHALL REPORT ANNUALLY TO THE 27
136	136	COMMISSION ON: 28
137	137
138	138	(I) THE NUMBER OF MINORITY AND WOMEN OWNERS OF THE 29
139	139	GROWER; 30
140	140	4 SENATE BILL 628
141	141
142	142
143	143	(II) THE OWNERSHIP INTEREST OF ANY MINORITY AND WOMEN 1
144	144	OWNERS OF THE GROWER; AND 2
145	145
146	146	(III) THE NUMBER OF MINORITY AND WOMEN EMPLOYEES OF 3
147	147	THE GROWER. 4
148	148
149	149	(D) A GROWER LICENSED UNDER THIS SECTION: 5
150	150
151	151	(1) MAY OPERATE IN A FACILITY THAT DOES NOT EXCEED 25,000 6
152	152	SQUARE FEET; AND 7
153	153
154	154	(2) IS SUBJECT TO THE LICEN SED GROWER REQUIREME NTS UNDER § 8
155	155	13–3306 OF THIS SUBTITLE. 9
156	156
157	157	(E) THE COMMISSION SHALL ADOP T REGULATIONS TO CARRY OUT THIS 10
158	158	SECTION. 11
159	159
160	160	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
161	161	October 1, 2022. 13