EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0628*
SENATE BILL 628
J1 2lr2821
By: Senator Patterson
Introduced and read first time: February 3, 2022
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Medical Cannabis – Grower License – Number and Licensed Processors 2
FOR the purpose of altering the maximum number of medical cannabis growers that may 3
be licensed by the Natalie M. LaPrade Medical Cannabis Commission; providing that 4
a grower may operate in a facility that does not exceed a certain number of square 5
feet; authorizing a licensed processor to apply for licensure as a medical cannabis 6
grower; and generally relating to grower licenses issued by the Natalie M. LaPrade 7
Medical Cannabis Commission. 8
BY repealing and reenacting, with amendments, 9
Article – Health – General 10
Section 13–3306(a)(2) and (d) 11
Annotated Code of Maryland 12
(2019 Replacement Volume and 2021 Supplement) 13
BY adding to 14
Article – Health – General 15
Section 13–3309.1 16
Annotated Code of Maryland 17
(2019 Replacement Volume and 2021 Supplement) 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That the Laws of Maryland read as follows: 20
Article – Health – General 21
13–3306. 22
(a) (2) (i) Subject to subparagraph (ii) of this paragraph, the Commission 23
may license no more than [22] 42 medical cannabis growers. 24 2 SENATE BILL 628
(ii) 1. If an applicant for licensure that received Stage One 1
preapproval in calendar year 2016 for a medical cannabis grower license fails to satisfy the 2
requirements for licensure established by the Commission, the Commission shall rescind 3
the applicant’s Stage One preapproval. 4
2. If the Commission rescinds the Stage One preapproval for 5
a license of an applicant under subsubparagraph 1 of this subparagraph, the maximum 6
number of medical cannabis grower licenses authorized under subparagraph (i) of this 7
paragraph shall be reduced by one medical cannabis grower license. 8
(iii) 1. Subject to subsubparagraph 2 of this subparagraph, 9
beginning December 1, 2024, the Commission may report to the General Assembly, in 10
accordance with § 2–1257 of the State Government Article, on the number of licenses 11
necessary to meet the demand for medical cannabis by qualifying patients and caregivers 12
issued identification cards under this subtitle in an affordable, accessible, secure, and 13
efficient manner. 14
2. Before the Commission determines to submit the report 15
described under subsubparagraph 1 of this subparagraph, the Commission shall provide 16
the Legislative Policy Committee at least 30 days to submit comments to the Commission. 17
(iv) The Commission shall establish an application review process for 18
granting medical cannabis grower licenses in which applications are reviewed, evaluated, 19
and ranked based on criteria established by the Commission. 20
(v) A person may not have an ownership interest in or control of, 21
including the power to manage and operate, more than one grower. 22
(vi) A grower shall pay an application fee in an amount to be 23
determined by the Commission consistent with this subtitle. 24
(d) An entity licensed to grow medical cannabis under this section [shall]: 25
(1) SHALL ensure that safety precautions established by the Commission 26
are followed by any facility operated by the grower; AND 27
(2) MAY OPERATE IN A FACI LITY THAT DOES NOT E XCEED 10,000 28
SQUARE FEET . 29
13–3309.1. 30
(A) A PROCESSOR LICENSED B Y THE COMMISSION UNDER § 13–3303 OF 31
THIS SUBTITLE MAY APPLY FOR LICENS URE AS A GROWER . 32
(B) TO BE LICENSED AS A G ROWER, A LICENSED PROCESSOR A PPLICANT 33 SENATE BILL 628 3
SHALL SUBMIT TO THE COMMISSION: 1
(1) PROOF OF ADEQUATE CAP ITAL THROUGH A CERTIFIED 2
FINANCIAL STATEMENT ; 3
(2) IF APPLICABLE , PROOF THAT THE APPLI CANT QUALIFIES AS A 4
MINORITY BUSINESS ENTERPRISE , AS DEFINED IN § 14–301 OF THE STATE FINANCE 5
AND PROCUREMENT ARTICLE, OR IS A SMALL, MINORITY, OR 6
WOMEN–OWNED BUSINESS ENTITY; 7
(3) PROOF OF CONTROL OF T HE PREMISES AT WHICH THE APPLICANT 8
WILL OPERATE AS A GR OWER THROUGH OWNERSHIP OR A LEASE WITH A MINIM UM 9
TERM OF 5 YEARS; 10
(4) A SECURITY PLAN THAT I NCLUDES LIGHTING , ALARMS, AND 11
PERSONNEL ; 12
(5) A STANDARD OPERATING P ROCEDURE PLAN THAT I NCLUDES 13
CULTIVATION, GROWTH, AND PACKAGING; 14
(6) A BUSINESS PLAN DEMONS TRATING THE APPLICAN T’S ABILITY TO 15
SUCCEED; AND 16
(7) AN APPLICATION FEE IN THE AMOUNT OF $10,000. 17
(C) (1) THE COMMISSION SHALL: 18
(I) TO THE EXTENT AUTHORIZED UNDER FEDERAL AND STATE 19
LAW, ACTIVELY SEEK TO ACHIEVE RACIAL, ETHNIC, GENDER, AND GEOGRAPHIC 20
DIVERSITY WHEN LICENSING PROCESSORS AS GROWERS; AND 21
(II) ENCOURAGE PROCESSORS WHO QUALIFY AS A MINORITY 22
BUSINESS ENTERPRISE, AS DEFINED IN § 14–301 OF THE STATE FINANCE AND 23
PROCUREMENT ARTICLE, OR AS A SMALL, MINORITY, OR WOMEN–OWNED BUSINESS 24
ENTITY TO APPLY FOR LICENSURE AS GROWERS. 25
(2) BEGINNING OCTOBER 1, 2022, A PROCESSOR LICENSED UNDER 26
THIS SECTION TO OPERATE AS A GROWER SHALL REPORT ANNUALLY TO THE 27
COMMISSION ON: 28
(I) THE NUMBER OF MINORITY AND WOMEN OWNERS OF THE 29
GROWER; 30
4 SENATE BILL 628
(II) THE OWNERSHIP INTEREST OF ANY MINORITY AND WOMEN 1
OWNERS OF THE GROWER; AND 2
(III) THE NUMBER OF MINORITY AND WOMEN EMPLOYEES OF 3
THE GROWER. 4
(D) A GROWER LICENSED UNDER THIS SECTION: 5
(1) MAY OPERATE IN A FACILITY THAT DOES NOT EXCEED 25,000 6
SQUARE FEET; AND 7
(2) IS SUBJECT TO THE LICEN SED GROWER REQUIREME NTS UNDER § 8
13–3306 OF THIS SUBTITLE. 9
(E) THE COMMISSION SHALL ADOP T REGULATIONS TO CARRY OUT THIS 10
SECTION. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 12
October 1, 2022. 13