EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0556*
HOUSE BILL 556
A1, J1, Q4 EMERGENCY BILL 3lr0457
CF 3lr2933
By: Delegates Wilson and Atterbeary
Introduced and read first time: February 3, 2023
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Cannabis Reform 2
FOR the purpose of renaming the Alcohol and Tobacco Commission to be the Alcohol, 3
Tobacco, and Cannabis Commission; establishing a regulatory and licensing system 4
for adult–use cannabis under the Commission; imposing the sales and use tax on the 5
sale of adult–use cannabis at certain rates in certain fiscal years; establishing the 6
Office of Social Equity, the Advisory Board on Medical and Adult–Use Cannabis, and 7
the Social Equity Partnership Grant Fund in the Commission; altering provisions of 8
law relating to the Community Reinvestment and Repair Fund; establishing the 9
Cannabis Regulation and Enforcement Division in the Commission; requiring the 10
Division to establish and maintain a State cannabis testing laboratory; establishing 11
the Cannabis Regulation and Enforcement Fund as a special, nonlapsing fund; 12
requiring that the investment earnings of the Cannabis Regulation and Enforcement 13
Fund be credited to the Fund; repealing certain provisions of law establishing and 14
governing the Natalie M. LaPrade Medical Cannabis Commission; requiring the 15
Division, rather than the Natalie M. LaPrade Medical Cannabis Commission, to take 16
certain actions related to medical cannabis; requiring the Division, on or before a 17
certain date and under certain circumstances, to convert medical cannabis licenses 18
to licenses to operate a medical and adult–use cannabis business; regulating the 19
actions that local jurisdictions may take regarding cannabis businesses; prohibiting 20
certain individuals from taking certain actions related to cannabis licensees and 21
registrants; establishing the Medical Cannabis Compassionate Use Fund as a 22
special, nonlapsing fund; requiring that the interest earnings of the Medical 23
Cannabis Compassionate Use Fund be credited to the Fund; authorizing certain 24
entities to register with the Division to purchase cannabis for research purposes; 25
establishing prohibitions related to the advertising of cannabis and cannabis 26
products; requiring a person to be approved by the Division to offer a certain training 27
program; establishing certain legal protections related to the use of cannabis; 28
establishing a Capital Access Program in the Department of Commerce; establishing 29
certain prohibitions related to banking by cannabis businesses; altering certain 30
provisions of law relating to the Cannabis Business Assistance Fund; exempting the 31 2 HOUSE BILL 556
Commission from State procurement requirements under certain circumstances; 1
requiring a cannabis licensee, under certain circumstances, to comply with the 2
State’s Minority Business Enterprise Program; and generally relating to medical and 3
adult–use cannabis. 4
BY repealing 5
Article – Health – General 6
Section 13–3301 through 13–3316 and the subtitle “Subtitle 33. Natalie M. LaPrade 7
Medical Cannabis Commission” 8
Annotated Code of Maryland 9
(2019 Replacement Volume and 2022 Supplement) 10
BY repealing 11
Article – Health – General 12
The subtitle designation “Subtitle 46. Community Reinvestment and Repair Fund” 13
immediately preceding Section 13–4601 14
Annotated Code of Maryland 15
(2019 Replacement Volume and 2022 Supplement) 16
(As enacted by Chapter 26 of the Acts of the General Assembly of 2022) 17
BY transferring 18
Article – Health – General 19
Section 13–4601 20
Annotated Code of Maryland 21
(2019 Replacement Volume and 2022 Supplement) 22
(As enacted by Chapter 26 of the Acts of the General Assembly of 2022) 23
to be 24
Article – Alcoholic Beverages 25
Section 1–322 26
Annotated Code of Maryland 27
(2016 Volume and 2022 Supplement) 28
BY repealing and reenacting, without amendments, 29
Article – Alcoholic Beverages 30
Section 1–101(a) 31
Annotated Code of Maryland 32
(2016 Volume and 2022 Supplement) 33
BY repealing and reenacting, with amendments, 34
Article – Alcoholic Beverages 35
Section 1–101(f) and (q); and 1–302, 1–303(a), 1–304, 1–307 through 1–310, and 36
1–313 to be under the amended subtitle “Subtitle 3. Alcohol, Tobacco, and 37
Cannabis Commission” 38
Annotated Code of Maryland 39
(2016 Volume and 2022 Supplement) 40
BY adding to 41 HOUSE BILL 556 3
Article – Alcoholic Beverages 1
Section 1–309.1, 1–309.2, and 1–323; and 36–101 through 36–1507 to be under the 2
new division “Division III. Cannabis” 3
Annotated Code of Maryland 4
(2016 Volume and 2022 Supplement) 5
BY repealing and reenacting, with amendments, 6
Article – Alcoholic Beverages 7
Section 1–322 8
Annotated Code of Maryland 9
(2016 Volume and 2022 Supplement) 10
(As enacted by Section 3 of this Act) 11
BY adding to 12
Article – Tax – General 13
Section 2–1302.2, 11–104(k), and 11–245 14
Annotated Code of Maryland 15
(2022 Replacement Volume) 16
BY repealing and reenacting, with amendments, 17
Article – Tax – General 18
Section 2–1303 19
Annotated Code of Maryland 20
(2022 Replacement Volume) 21
BY repealing and reenacting, with amendments, 22
Article – Economic Development 23
Section 5–1901 24
Annotated Code of Maryland 25
(2018 Replacement Volume and 2022 Supplement) 26
BY repealing and reenacting, without amendments, 27
Article – State Finance and Procurement 28
Section 6–226(a)(2)(i) 29
Annotated Code of Maryland 30
(2021 Replacement Volume and 2022 Supplement) 31
BY repealing and reenacting, with amendments, 32
Article – State Finance and Procurement 33
Section 6–226(a)(2)(ii)170. and 171. 34
Annotated Code of Maryland 35
(2021 Replacement Volume and 2022 Supplement) 36
BY adding to 37
Article – State Finance and Procurement 38
Section 6–226(a)(2)(ii)172. and 173. 39
Annotated Code of Maryland 40 4 HOUSE BILL 556
(2021 Replacement Volume and 2022 Supplement) 1
BY repealing and reenacting, with amendments, 2
Article – Health – General 3
Section 13–4505 4
Annotated Code of Maryland 5
(2019 Replacement Volume and 2022 Supplement) 6
BY renaming 7
Article – Alcoholic Beverages 8
to be Article – Alcoholic Beverages and Cannabis 9
Annotated Code of Maryland 10
(2016 Volume and 2022 Supplement) 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That Section(s) 13–3301 through 13–3316 and the subtitle “Subtitle 33. Natalie M. LaPrade 13
Medical Cannabis Commission” of Article – Health – General of the Annotated Code of 14
Maryland be repealed. 15
SECTION 2. AND BE IT FURTHER ENACTED, That the subtitle designation 16
“Subtitle 46. Community Reinvestment and Repair Fund.” immediately preceding § 17
13–4601 of the Health – General Article be repealed. 18
SECTION 3. AND BE IT FURTHER ENACTED, That Section(s) 13–4601 of Article 19
– Health – General of the Annotated Code of Maryland be transferred to be Section(s) 20
1–322 of Article – Alcoholic Beverages of the Annotated Code of Maryland. 21
SECTION 4. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 22
as follows: 23
Article – Alcoholic Beverages 24
1–101. 25
(a) In this article the following words have the meanings indicated. 26
(f) “Commission” means the Alcohol [and], Tobacco, AND CANNABIS 27
Commission. 28
(q) (1) “License holder” means the holder of [a] AN ALCOHOLIC BEVERAGE 29
license issued or a permit granted under this article. 30
(2) “License holder” includes: 31
(i) a county liquor control board and a county dispensary; and 32
(ii) for the delivery and billing purposes of Title 2, Subtitle 3 and §§ 33 HOUSE BILL 556 5
2–213 and 2–314 of this article, a corporation on behalf of which an individual has obtained 1
a license. 2
Subtitle 3. Alcohol [and], Tobacco, AND CANNABIS Commission. 3
1–302. 4
There is an Alcohol [and], Tobacco, AND CANNABIS Commission. 5
1–303. 6
(a) (1) The Commission consists of [five] SEVEN members to be appointed by 7
the Governor with the advice and consent of the Senate. 8
(2) The presiding officer of either House of the General Assembly may 9
recommend to the Governor a list of individuals for appointment to the Commission. 10
(3) Of the Commission members: 11
(i) one shall be knowledgeable and experienced in public health 12
matters; 13
(ii) one shall be knowledgeable and experienced in law enforcement 14
matters; 15
(iii) one shall be knowledgeable and experienced in the alcoholic 16
beverages industry; [and] 17
(IV) TWO SHALL BE KNOWLED GEABLE AND EXPERIENC ED IN 18
THE CANNABIS INDUSTR Y; AND 19
[(iv)] (V) two shall be members of the public who are knowledgeable 20
and experienced in fiscal matters and shall have substantial experience: 21
1. as an executive with fiduciary responsibilities in charge of 22
a large organization or foundation; 23
2. in an academic field relating to finance or economics; or 24
3. as an accountant, an economist, or a financial analyst. 25
(4) In addition to the members appointed under paragraph (3) of this 26
subsection, the Secretary of Health and the Secretary of State Police, or their designees, 27
may participate in the Commission as ex officio nonvoting members. 28
1–304. 29 6 HOUSE BILL 556
(a) A member of the Commission may not: 1
(1) have a direct or indirect financial interest, ownership, or management, 2
including holding any stocks, bonds, or other similar financial interests, in the alcohol [or], 3
tobacco, OR CANNABIS industries; 4
(2) have an official relationship to a person who holds a license or permit 5
under this article or Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation 6
Article; 7
(3) be an elected official; 8
(4) receive or share in, directly or indirectly, the receipts or proceeds of any 9
activities conducted in the alcohol [or], tobacco, OR CANNABIS industries; 10
(5) have a beneficial interest in any contract for the manufacture or sale of 11
any device or product or the provision of any independent consulting services in connection 12
with a holder of a license or permit issued under this article or Title 16, Title 16.5, Title 13
16.7, or Title 16.9 of the Business Regulation Article; or 14
(6) accept a contribution of money or property worth at least $100 from an 15
entity or individual associated with the alcohol [or], tobacco, OR CANNABIS industries with 16
respect to the regulation of alcohol [or], tobacco, OR CANNABIS. 17
(b) A member of the Commission shall file a financial disclosure statement with 18
the State Ethics Commission in accordance with Title 5, Subtitle 6 of the General 19
Provisions Article. 20
1–307. 21
(a) The Commission has the powers and duties set forth in this section. 22
(b) The Commission shall: 23
(1) educate the public, by resource sharing and serving as an information 24
clearinghouse, on such topics as: 25
(i) recent increases in alcohol content for popular beer and other 26
beverages; 27
(ii) the proper limits of drinking for adults; 28
(iii) the adverse consequences of surpassing those limits; 29
(iv) parental or adult responsibility for serving alcohol to underage 30
individuals; and 31 HOUSE BILL 556 7
(v) comparable topics relating to smoking, vaping, tobacco, other 1
tobacco products, [and] electronic nicotine delivery systems, CANNABIS, AND CANNABIS 2
PRODUCTS; and 3
(2) subject to federal approval, ensure that all alcoholic beverages sold in 4
the State with an alcohol content exceeding 4.5% by volume bear a large and conspicuous 5
label stating the percentage of alcohol content. 6
(c) (1) The Commission shall conduct studies of: 7
(i) the operation and administration of similar laws in other states 8
or countries; and 9
(ii) federal laws that may affect the operation of the alcohol [or], 10
tobacco, OR CANNABIS industries, the literature on those industries, and the reaction of 11
residents of the State to existing and potential features of those industries. 12
(2) The Commission shall submit to the Governor and, in accordance with 13
§ 2–1257 of the State Government Article, the General Assembly the studies required under 14
this subsection. 15
1–308. 16
The Commission shall develop best practices for: 17
(1) the dedication of a minimum effective portion of the budget of a local 18
licensing board to administrative enforcement activities, such as inspections, compliance 19
checks, overservice, operations, and trade practice violations; 20
(2) the carrying out of compliance checks for alcoholic beverages licenses, 21
in which each license is checked at least once a year; 22
(3) the development of guidelines for the minimum capacity of inspections 23
carried out by inspectors of local licensing boards, based on the number and type of licensed 24
outlets in the licensing jurisdiction; 25
(4) ensuring that alcoholic beverages inspections be based on data such as 26
the violation history of the license holder, and calls for emergency assistance, emergency 27
medical service, or nonemergency service, so that resources are being allocated based on 28
where the greatest need is; 29
(5) the reporting of aggregate data between local police and local licensing 30
boards; 31
(6) the development of mandatory State–provided training for liquor 32
inspectors; 33 8 HOUSE BILL 556
(7) reporting by the State to the affected local licensing board of a 1
State–issued license or permit within 10 days after the State receives an application; 2
(8) the development of a public health impact statement for all changes to 3
the State alcoholic beverages laws; [and] 4
(9) ensuring that: 5
(i) all license holders, managers, and servers receive certification 6
from an approved alcohol awareness program; and 7
(ii) at least one employee who is certified in an alcohol awareness 8
program be on the licensed premises at all times when alcoholic beverages are served; 9
(10) REGULATING THE CANNA BIS INDUSTRY AND IMPLEMENTING 10
PUBLIC HEALTH MEASUR ES RELATING TO CANNA BIS; AND 11
(11) REGULATING , TO THE EXTENT POSSIB LE, MEDICAL AND 12
ADULT–USE CANNABIS IN A SI MILAR MANNER . 13
1–309. 14
(a) With the advice and consent of the Senate, the Governor shall appoint an 15
Executive Director of the Commission. 16
(b) The Executive Director serves at the pleasure of the Governor. 17
(c) The Executive Director shall: 18
(1) have the training and experience, including knowledge of the Maryland 19
alcohol, TOBACCO, AND CANNABIS regulatory system, that is needed to direct the work of 20
the Commission; 21
(2) be a sworn police officer with the powers granted to an officer or 22
employee of the Field Enforcement Division under § 1–313 of this subtitle; and 23
(3) devote full time to the duties of office and may not engage in another 24
profession or occupation. 25
(d) The Executive Director is entitled to the salary provided in the State budget. 26
1–309.1. 27
(A) THERE IS AN OFFICE OF SOCIAL EQUITY WITHIN THE COMMISSION. 28
HOUSE BILL 556 9
(B) (1) THE GOVERNOR SHALL APPOINT AN EXECUTIVE DIRECTOR OF 1
THE OFFICE OF SOCIAL EQUITY. 2
(2) THE EXECUTIVE DIRECTOR OF THE OFFICE OF SOCIAL EQUITY 3
SHALL HAVE AT LEAST 5 YEARS OF EXPERIENCE IN CIVIL RIGHTS ADVO CACY, CIVIL 4
RIGHTS LITIGATION , OR ANOTHER AREA OF S OCIAL JUSTICE. 5
(C) THE OFFICE OF SOCIAL EQUITY MAY EMPLOY STA FF AND RETAIN 6
CONTRACTORS AS MAY B E REQUIRED TO CARRY OUT THE FUNCTIONS OF THE 7
OFFICE. 8
(D) THE OFFICE OF SOCIAL EQUITY SHALL: 9
(1) PROMOTE AND ENCOURAG E FULL PARTICIPATION IN THE 10
REGULATED CANNABIS I NDUSTRY BY PEOPLE FROM COMMUNITIES THAT HAV E 11
PREVIOUSLY BEEN DISP ROPORTIONATELY HARME D BY THE WAR ON DRUG S IN 12
ORDER TO POSITIVELY IMPACT THOSE COMMUNI TIES; 13
(2) CONSULT WITH AND ASS IST THE COMPTROLLER IN THE 14
ADMINISTRATION OF TH E COMMUNITY REINVESTMENT AND REPAIR FUND UNDER 15
§ 1–322 OF THIS SUBTITLE ; 16
(3) CONSULT WITH AND ASS IST THE DEPARTMENT OF COMMERCE IN 17
THE ADMINISTRATION O F THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 18
5–1901 OF THE ECONOMIC DEVELOPMENT ARTICLE; 19
(4) IDENTIFY AND OPPOSE REGULATIONS THAT UNN ECESSARILY 20
BURDEN OR UNDERMINE THE LEGISLATIVE INTE NT OF THE OFFICE, INCLUDING 21
REGULATIONS THAT IMP OSE UNDUE RESTRICTIO NS OR FINANCIAL REQU IREMENTS; 22
(5) PROVIDE RECOMMENDATI ONS TO THE COMMISSION ON 23
REGULATIONS RELATED TO: 24
(I) DIVERSITY; AND 25
(II) SOCIAL EQUITY APPLIC ATIONS; 26
(6) WORK WITH THE COMMISSION TO IMPLEME NT FREE TECHNICAL 27
ASSISTANCE FOR SOCIA L EQUITY AND MINORIT Y CANNABIS BUSINESS APPLICANTS; 28
(7) PRODUCE REPORTS AND RECOMMENDATIONS ON D IVERSITY AND 29
EQUITY IN OWNERSHIP , MANAGEMENT , AND EMPLOYMENT IN TH E LEGAL CANNABIS 30
ECONOMY; 31 10 HOUSE BILL 556
(8) ASSIST BUSINESSES WI TH OBTAINING FINANCI NG THROUGH THE 1
CAPITAL ACCESS PROGRAM UNDER TITLE 36, SUBTITLE 14 OF THIS ARTICLE; AND 2
(9) DETERMINE WHICH INDI VIDUALS AND ENTITIES SHALL BE 3
GRANTED LOANS OR GRA NTS FROM THE CANNABIS BUSINESS ASSISTANCE FUND 4
UNDER § 5–1901 OF THE ECONOMIC DEVELOPMENT ARTICLE. 5
(E) ON OR BEFORE MARCH 1 EACH YEAR, THE OFFICE OF SOCIAL EQUITY 6
SHALL PRODUCE AND MA KE PUBLICLY AVAILABL E A REPORT ON HOW THE FUNDS IN 7
THE COMMUNITY REINVESTMENT AND REPAIR FUND UNDER § 1–322 OF THIS 8
SUBTITLE AND THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 5–1901 OF 9
THE ECONOMIC DEVELOPMENT ARTICLE WERE ALLOCATED DURING THE 10
IMMEDIATELY PRECEDIN G CALENDAR YEAR . 11
(F) (1) ON OR BEFORE NOVEMBER 1 EACH YEAR, THE OFFICE OF SOCIAL 12
EQUITY SHALL SOLICIT PUBLIC INPUT ON THE USES OF THE FUNDS IN THE 13
COMMUNITY REINVESTMENT AND REPAIR FUND UNDER § 1–322 OF THIS SUBTITLE 14
AND THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 5–1901 OF THE 15
ECONOMIC DEVELOPMENT ARTICLE. 16
(2) ON OR BEFORE DECEMBER 15 EACH YEAR, THE OFFICE OF 17
SOCIAL EQUITY SHALL PUBLISH A REVIEW OF THE INPU T RECEIVED UNDER 18
PARAGRAPH (1) OF THIS SUBSECTION O N A PUBLICLY ACCESSIBLE PART OF T HE 19
COMMISSION’S WEBSITE. 20
1–309.2. 21
(A) IN THIS SECTION, “ADVISORY BOARD” MEANS THE ADVISORY BOARD 22
ON MEDICAL AND ADULT–USE CANNABIS. 23
(B) THERE IS AN ADVISORY BOARD ON MEDICAL AND ADULT–USE 24
CANNABIS. 25
(C) THE ADVISORY BOARD SHALL: 26
(1) CONSIDER ALL MATTERS SUBMITTED TO IT BY T HE COMMISSION, 27
THE GOVERNOR, THE CANNABIS REGULATION AND ENFORCEMENT DIVISION, OR 28
THE GENERAL ASSEMBLY; AND 29
(2) ON ITS OWN INITIATIV E, PROVIDE RECOMMENDATI ONS TO THE 30
COMMISSION O R THE CANNABIS REGULATION AND ENFORCEMENT DIVISION 31
ESTABLISHED UNDER § 36–201 OF THIS ARTICLE REGA RDING GUIDELINES , RULES, 32 HOUSE BILL 556 11
AND REGULATIONS THAT THE ADVISORY BOARD CONSIDERS IMPOR TANT OR 1
NECESSARY FOR REVIEW AND CONSIDERATION BY THE COMMISSION OR THE 2
CANNABIS REGULATION AND ENFORCEMENT DIVISION. 3
(D) THE ADVISORY BOARD CONSISTS OF : 4
(1) THE DIRECTOR OF THE CANNABIS REGULATION AND 5
ENFORCEMENT DIVISION, WHO SHALL SERVE AS CHAIR OF THE ADVISORY BOARD; 6
AND 7
(2) THE FOLLOWING MEMBER S, APPOINTED BY THE GOVERNOR WITH 8
THE ADVICE AND CONSE NT OF THE SENATE: 9
(I) THREE MEMBERS THAT H AVE SUBSTANTIAL EXPE RIENCE IN 10
ONE OR MORE OF THE F OLLOWING: 11
1. CANNABIS LAW , SCIENCE, OR POLICY; 12
2. PUBLIC HEALTH OR HEA LTH CARE; 13
3. AGRICULTURE ; 14
4. FINANCE; OR 15
5. ADDICTION TREATMENT ; 16
(II) ONE ACADEMIC RESEARC HER WITH AT LEAST 5 YEARS OF 17
EXPERIENCE IN SOCIAL OR HEALTH EQUITY ; 18
(III) ONE REPRESENTATIVE O F AN INDEPENDENT TES TING 19
LABORATORY REGISTERE D UNDER § 36–408 OF THIS ARTICLE; 20
(IV) THREE REPRESENTATIVE S WHO HOLD A STANDAR D 21
GROWER, PROCESSOR, OR DISPENSARY LICENS E UNDER § 36–401 OF THIS ARTICLE; 22
(V) THREE REPRESENTATIVE S WHO HOLD A MICRO G ROWER, 23
PROCESSOR, OR DISPENSARY LICENS E UNDER § 36–401 OF THIS ARTICLE; 24
(VI) ONE REPRESE NTATIVE OF AN ORGANI ZATION THAT 25
ADVOCATES ON BEHALF OF PATIENTS WHO ENGA GE IN THE MEDICAL US E OF 26
CANNABIS; 27
(VII) ONE REPRESENTATIVE O F AN ORGANIZATION TH AT 28 12 HOUSE BILL 556
ADVOCATES ON BEHALF OF CONSUMERS WHO ENG AGE IN THE ADULT USE OF 1
CANNABIS; AND 2
(VIII) ONE HEALTH CARE PROV IDER WHO IS REGISTER ED TO 3
CERTIFY PATIENTS TO OBTAIN MEDICAL CANNA BIS UNDER § 36–301 OF THIS 4
ARTICLE. 5
(E) THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE 6
MAY RECOMMEND TO THE GOVERNOR A LIST OF IN DIVIDUALS FOR APPOIN TMENT 7
TO THE ADVISORY BOARD. 8
(F) (1) THE TERM OF A MEMBER OF THE ADVISORY BOARD IS 4 YEARS. 9
(2) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL 10
A SUCCESSOR IS APPOI NTED AND QUALIFIES . 11
(3) AN APPOINTED MEMBER M AY NOT SERVE MORE TH AN TWO FULL 12
TERMS. 13
(G) AN APPOINTED MEMBER O F THE ADVISORY BOARD MUST BE : 14
(1) AT LEAST 25 YEARS OLD; 15
(2) A RESIDENT OF THE STATE WHO HAS RESIDED IN THE STATE FOR 16
AT LEAST THE IMMEDIA TELY PRECEDING 5 YEARS BEFORE THE APP OINTMENT; AND 17
(3) A REGISTERED VOTER O F THE STATE. 18
(H) THE ADVISORY BOARD SHALL ESTABLISH AT LEAST TWO 19
SUBCOMMITTEES TO FOC US ON MEDICAL AND AD ULT–USE CANNABIS. 20
(I) TO THE EXTENT PRACTIC ABLE AND CONSISTENT WITH FEDERAL AND 21
STATE LAW, THE MEMBERSHIP OF TH E ADVISORY BOARD SHALL REFLECT T HE 22
RACIAL, ETHNIC, AND GENDER DIVERSITY OF THE STATE. 23
1–310. 24
The Executive Director and all employees in the Office of the Executive Director may 25
not accept a contribution of money or property worth at least $100 from an entity or 26
individual associated with the alcohol [or], tobacco, OR CANNABIS industries with respect 27
to regulation of alcohol [or], tobacco, OR CANNABIS. 28
1–313. 29
HOUSE BILL 556 13
(a) There is a Field Enforcement Division in the Office of the Executive Director. 1
(b) (1) The Field Enforcement Division may employ officers and employees as 2
provided in the State budget. 3
(2) The officers and employees of the Field Enforcement Division: 4
(i) shall be sworn police officers; 5
(ii) shall have the powers, duties, and responsibilities of peace 6
officers to enforce the provisions of this article relating to: 7
1. the unlawful importation of alcoholic beverages [and], 8
tobacco, AND CANNABIS into the State; 9
2. the unlawful manufacture of alcoholic beverages [and], 10
tobacco, AND CANNABIS in the State; 11
3. the transportation and distribution throughout the State 12
of alcoholic beverages [and], tobacco, AND CANNABIS that are manufactured illegally and 13
on which any alcoholic beverages taxes [or], tobacco taxes, OR CANNABIS TAXES imposed 14
by the State are due and unpaid; and 15
4. the manufacture, sale, barter, transportation, 16
distribution, or other form of owning, handling, or dispersing alcoholic beverages [or], 17
tobacco, OR CANNABIS by any person not licensed or authorized under this article, 18
provisions of the Tax – General Article relating to alcoholic beverages [or], tobacco, OR 19
CANNABIS, or provisions of the Business Regulation Article relating to tobacco; and 20
(iii) may make cooperative arrangements for and work and cooperate 21
with the Office of the Comptroller, local State’s Attorneys, sheriffs, bailiffs, police, and other 22
prosecuting and peace officers to enforce this article. 23
(c) The Field Enforcement Division: 24
(1) shall consult with and advise the local State’s Attorneys and other law 25
enforcement officials and police officers regarding enforcement problems in their respective 26
jurisdictions; and 27
(2) may recommend changes to improve the administration of this article, 28
provisions of the Tax – General Article relating to alcoholic beverages [and], tobacco, AND 29
CANNABIS, and provisions of the Business Regulation Article relating to tobacco. 30
1–322. 31
(a) (1) There is a Community Reinvestment and Repair Fund. 32 14 HOUSE BILL 556
(2) The purpose of the Fund is to provide funds to community–based 1
organizations that serve communities determined by THE OFFICE OF SOCIAL EQUITY, 2
IN CONSULTATION WITH the Office of the Attorney General, to have been the most 3
impacted by disproportionate enforcement of the cannabis prohibition before July 1, 2022. 4
(3) The Comptroller shall administer the Fund. 5
(4) (i) The Fund is a special, nonlapsing fund that is not subject to § 6
7–302 of the State Finance and Procurement Article. 7
(ii) The State Treasurer shall hold the Fund separately, and the 8
Comptroller shall account for the Fund. 9
(5) The Fund consists of: 10
(i) [Revenue distributed to the Fund that is at least 30% of the 11
revenues from adult–use cannabis] SALES AND USE TAX RE VENUE DISTRIBUTED TO 12
THE FUND UNDER § 2–1302.2 OF THE TAX – GENERAL ARTICLE; 13
(ii) [Licensing] CONVERSION fees paid by [dual–licensed cannabis 14
establishments] BUSINESSES UNDER § 36–403 OF THIS ARTICLE ; and 15
(iii) [Any] ANY other money from any other source accepted for the 16
benefit of the Fund, in accordance with any conditions adopted by the Comptroller for the 17
acceptance of donations or gifts to the Fund. 18
(6) (i) The Fund may be used only for: 19
1. [Funding] FUNDING community–based initiatives 20
intended to benefit low–income communities; 21
2. [Funding] FUNDING community–based initiatives that 22
serve [communities disproportionately harmed by the cannabis prohibition and 23
enforcement] DISPROPORTIONATELY IMPACTED AREAS , AS DEFINED IN § 36–101 OF 24
THIS ARTICLE; and 25
3. [Any] ANY related administrative expenses. 26
(ii) Money may not be expended from the Fund for law enforcement 27
agencies or activities. 28
(iii) Money expended from the Fund is supplemental to and may not 29
supplant funding that otherwise would be appropriated for preexisting local government 30
programs. 31
HOUSE BILL 556 15
(7) The State Treasurer shall invest the money of the Fund in the same 1
manner as other State money may be invested. 2
(8) No part of the Fund may revert or be credited to: 3
(i) [The] THE General Fund of the State; or 4
(ii) [Any] ANY other special fund of the State. 5
(9) The Comptroller shall pay out money from the Fund. 6
(10) The Fund is subject to audit by the Office of Legislative Audits as 7
provided for in § 2–1220 of the State Government Article. 8
(b) (1) The Comptroller shall distribute funds from the Fund to each county in 9
an amount that, for the period from July 1, 2002, to [June 30, 2022] JANUARY 1, 2023, 10
both inclusive, is proportionate to the total number of [cannabis arrests in the county 11
compared to the total number of cannabis arrests in the State] INDIVIDUALS RESIDING 12
IN THE COUNTY WHO WE RE CHARGED WITH A CA NNABIS CRIME COMPARE D TO THE 13
TOTAL NUMBER OF INDI VIDUALS CHARGED WITH CANNABIS CRIME S IN THE STATE. 14
(2) (i) Subject to the limitations under subsection (a)(6) of this section, 15
each county shall adopt a law establishing the purpose for which money received from the 16
Fund may be used. 17
(ii) On or before December 1 every 2 years, beginning in 2024, each 18
local jurisdiction shall submit a report to the Governor and, in accordance with § 2–1257 of 19
the State Government Article, the Senate Budget and Taxation Committee[, the Senate 20
Finance Committee, the House Judiciary Committee, and the Hou se Health and 21
Government Operations Committee] AND THE HOUSE APPROPRIATIONS COMMITTEE 22
on how funds received from the Fund were spent during the immediately preceding 2 fiscal 23
years. 24
1–323. 25
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 26
INDICATED. 27
(2) “CANNABIS LICENSEE ” HAS THE MEANING STAT ED IN § 36–101 OF 28
THIS ARTICLE. 29
(3) “DIVISION” HAS THE MEANING STAT ED IN § 36–101 OF THIS 30
ARTICLE. 31
(4) “GRANT PROGRAM” MEANS THE SOCIAL EQUITY PARTNERSHIP 32 16 HOUSE BILL 556
GRANT PROGRAM. 1
(5) (I) “QUALIFYING PARTNERSHI P” MEANS A MEANINGFUL 2
PARTNERSHIP BETWEEN AN OPERATIONAL CANNA BIS LICENSEE AND A S OCIAL 3
EQUITY LICENSEE THAT : 4
1. SUPPORTS OR ADVISES THE SOCIAL EQUITY 5
LICENSEE; AND 6
2. IS AUTHORIZED BY THE COMMISSION. 7
(II) “QUALIFYING PARTNERSHI P” INCLUDES A PARTNERSH IP 8
THROUGH WH ICH THE OPERATIONAL CANN ABIS LICENSEE PROVID ES ANY OF THE 9
FOLLOWING TO A SOCIA L EQUITY LICENSEE : 10
1. TRAINING; 11
2. MENTORSHIP ; OR 12
3. SHARED COMMERCIAL SPACE OR EQUIPMENT. 13
(6) “SOCIAL EQUITY LICENSEE ” MEANS A SOCIAL EQUIT Y APPLICANT, 14
AS DEFINED IN § 36–101 OF THIS ARTICLE , WHO HAS BEEN AWARDED A CANNABIS 15
LICENSE OR CANNABIS REGISTRATION . 16
(B) (1) THERE IS A SOCIAL EQUITY PARTNERSHIP GRANT PROGRAM IN 17
THE COMMISSION. 18
(2) THE PURPOSE OF THE GRANT PROGRAM IS TO PROMOTE 19
QUALIFYING PARTNERSH IPS BETWEEN OPERATIO NAL CANNABIS LICENSE ES AND 20
SOCIAL EQUITY LICENS EES. 21
(C) (1) THE COMMISSION SHALL IMPL EMENT AND ADMINISTER THE 22
GRANT PROGRAM, INCLUDING BY CLEARLY DEFINING THE PARAMETERS O F A 23
QUALIFYING PARTNERSH IP. 24
(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , THE 25
COMMISSION HAS DISCRE TION TO APPROVE , DENY, OR REVOKE QUALIFYING 26
PARTNERSHIPS . 27
(3) (I) THE COMMISSION MAY APPROV E QUALIFYING 28
PARTNERSHIPS WHERE A COST OR OTHER FEE IS IMPOSED BY AN OPERATIO NAL 29
CANNABIS LICENSEE ON A SOCIAL EQUITY LICE NSEE IF THE COST OR OTHER FEE IS 30
SUBSTANTIALLY REDUCE D FROM THE MARKET VA LUE. 31 HOUSE BILL 556 17
(II) COSTS OR OTHER FEES U NDER SUBPARAGRAPH (I) OF THIS 1
PARAGRAPH MAY INCLUD E CHARGES FOR THE RE NT OF FACILITIES OR EQUIPMENT . 2
(D) (1) THE COMMISSION SHALL AWAR D GRANTS TO OPERATIO NAL 3
CANNABIS LICENSEES T HAT HAVE QUALIFYING PARTNERSHIPS WITH A SOCIAL 4
EQUITY LICENSEE . 5
(2) GRANT AMOUNTS SHALL B E BASED ON THE NATUR E OF THE 6
QUALIFYING PARTNERSH IP BETWEEN THE SOC IAL EQUITY LICENSEE AND THE 7
OPERATIONAL CANNABIS LICENSEE. 8
(3) IF AN OPERATIONAL CAN NABIS LICENSEE HAS A LICENSE THAT 9
WAS CONVERTED BY THE DIVISION UNDER § 36–401(B)(1)(II) OF THIS ARTICLE, THE 10
TOTAL AWARD OF ANY G RANTS FROM THE COMMISSION TO THE LIC ENSEE MAY NOT 11
EXCEED THE COST OF T HE LICENSE CONVERSIO N FEE THAT WAS PAID BY THE 12
LICENSEE. 13
(E) THE COMMISSION MAY REQUIR E A GRANT RECIPIENT THAT FAILS TO 14
FULFILL THE REQUIREM ENTS OF THE GRANT TO RETURN ALL OR PART O F THE 15
GRANT TO THE GRANT PROGRAM. 16
(F) FOR EACH FISCAL YEAR , THE GOVERNOR SHALL INCLUD E IN THE 17
ANNUAL BUDGET BILL A N APPROPRIATION OF $5,000,000 FOR THE GRANT 18
PROGRAM. 19
(G) THE COMMISSION SHALL ADOP T REGULATIONS TO : 20
(1) IMPLEMENT THE PROVIS IONS OF THIS SECTION ; 21
(2) ADMINISTER THE GRANT PROGRAM; 22
(3) ESTABLISH ELIGIBILIT Y AND GRANT APPLICAT ION 23
REQUIREMENTS ; 24
(4) ESTABLISH A PROCESS FOR REVIEWING GRANT APPLICATIONS 25
AND AWARDING GRANTS TO SOCIAL EQUITY LIC ENSEES; AND 26
(5) SPECIFY CRITERIA AND PROCEDURES TO MONITO R ELIGIBILITY 27
FOR THE GRANTS AUTHORIZED UN DER THIS SECTION . 28
TITLE 34. RESERVED. 29
TITLE 35. RESERVED. 30 18 HOUSE BILL 556
DIVISION III. CANNABIS. 1
TITLE 36. MEDICAL AND ADULT–USE CANNABIS. 2
SUBTITLE 1. DEFINITIONS. 3
36–101. 4
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 5
INDICATED. 6
(B) “ACADEMIC RESEARCH REP RESENTATIVE ” MEANS AN INDIVIDUAL WHO 7
IS: 8
(1) AN EMPLOYEE OR AGENT OF AN INSTITUTION OF HIGHER 9
EDUCATION, A RELATED MEDICAL FA CILITY, OR AN AFFILIATED BIO MEDICAL 10
RESEARCH FIRM THAT F ILED A REGISTRATION WITH THE DIVISION UNDER § 36–701 11
OF THIS TITLE; AND 12
(2) AUTHORIZED TO PURCHA SE MEDICAL CANNABIS FOR THE 13
INSTITUTION OF HIGHE R EDUCATION, RELATED MEDICAL FACI LITY, OR AFFILIATED 14
BIOMEDICAL RESEARCH FIRM. 15
(C) (1) “CANNABIS” MEANS THE PLANT CANNABIS SATIVA L. AND ANY 16
PART OF THE PLANT, INCLUDING ALL DERIVA TIVES, EXTRACTS, CANNABINOIDS , 17
ISOMERS, ACIDS, SALTS, AND SALTS OF ISOMERS , WHETHER GROWING OR N OT, WITH 18
A DELTA–9–TETRAHYDROCANNABINOL CONCENTRATION GREATE R THAN 0.3% ON A 19
DRY WEIGHT BASIS . 20
(2) “CANNABIS” INCLUDES CANNABIS PR ODUCTS. 21
(3) “CANNABIS” DOES NOT INCLUDE HEM P OR HEMP PRODUCTS , AS 22
DEFINED IN § 14–101 OF THE AGRICULTURE ARTICLE. 23
(D) “CANNABIS AGENT ” MEANS AN EMPLOYEE , A VOLUNTEER , OR ANY 24
OTHER AUTHORIZED PER SON WHO ACTS FOR OR AT THE DIRECTION OF A CANNABIS 25
LICENSEE OR CANNABIS REGISTRANT. 26
(E) “CANNABIS BUSINESS ” MEANS A BUSINESS LIC ENSED BY THE DIVISION 27
TO OPERATE IN THE CA NNABIS INDUSTRY . 28
(F) “CANNABIS CONCENTRATE ” MEANS A PRODUCT DERI VED FROM 29 HOUSE BILL 556 19
CANNABIS THAT IS KIE F, HASHISH, BUBBLE HASH , OIL, WAX, OR ANY OTHER 1
PRODUCT PRODUCED BY EXTRACTING CANNABINO IDS FROM THE PLANT T HROUGH 2
THE USE OF SOLVENTS , CARBON DIOXIDE , OR HEAT, SCREENS, PRESSES, OR STEAM 3
DISTILLATION. 4
(G) “CANNABIS–INFUSED PRODUCT ” MEANS OIL, WAX, OINTMENT, SALVE, 5
TINCTURE, CAPSULE, SUPPOSITORY , DERMAL PATCH , CARTRIDGE, OR ANY OTHER 6
PRODUCT CONTAINING C ANNABIS CONCENTRATE OR USABLE CANNABIS T HAT HAS 7
BEEN PROCESSED SO TH AT THE DRIED LEAVES AND FLOWERS ARE INTE GRATED 8
INTO OTHER MATERIAL . 9
(H) “CANNABIS LICENSEE ” MEANS A BUSINESS LIC ENSED BY THE DIVISION 10
TO OPERATE IN THE CA NNABIS INDUSTRY . 11
(I) “CANNABIS PRODUCTS ” MEANS PRODUCTS THAT ARE COMPOSED OF 12
CANNABIS, CANNABIS CONCENTRATE , CANNABIS EXTRACT , OR OTHER INGREDIENTS 13
AND ARE INTENDED FOR USE OR CONSUMPTION , INCLUDING EDIBLE PRO DUCTS, 14
OILS, AND TINCTURES . 15
(J) “CANNABIS REGISTRANT ” MEANS AN INDEPENDENT TESTING 16
LABORATORY , A TRANSPORTER , A DELIVERY SERVICE , A SECURITY GUARD 17
COMPANY, A WASTE DISPOSAL COM PANY, AND ANY OTHER TYPE O F CANNABIS 18
BUSINESS REGISTERED UND ER THIS TITLE AND AU THORIZED BY THE DIVISION. 19
(K) (1) “CANOPY” MEANS THE TOTAL SQUA RE FOOTAGE OF SPACE USED 20
BY A CANNABIS LICENS EE FOR THE PRODUCTIO N OF FLOWERING CANNA BIS PLANTS. 21
(2) “CANOPY” INCLUDES EACH LAYER OF FLOWERING CANNAB IS 22
PLANTS GROWN ON ANY RACK OR SHELVING . 23
(3) “CANOPY” DOES NOT INCLUDE SQU ARE FOOTAGE USED FOR : 24
(I) MOTHER STOCK ; 25
(II) PROPAGATION ; 26
(III) IMMATURE OR NONFLOWE RING PLANTS; 27
(IV) PROCESSING; 28
(V) DRYING; 29
(VI) CURING; 30 20 HOUSE BILL 556
(VII) TRIMMING; 1
(VIII) STORAGE; 2
(IX) OFFICES; 3
(X) HALLWAYS; 4
(XI) PATHWAYS; 5
(XII) WORK AREAS ; OR 6
(XIII) OTHER ADMINISTRATIVE AND NONPRODUCTION US ES. 7
(L) (1) “CAREGIVER” MEANS: 8
(I) AN INDIVIDUAL WHO HAS AGREED TO AS SIST WITH A 9
QUALIFYING PATIENT’S MEDICAL USE OF CAN NABIS; AND 10
(II) FOR A QUALIFYING PAT IENT UNDER THE AGE O F 18 YEARS: 11
1. A PARENT OR LEGAL GU ARDIAN; AND 12
2. NOT MORE THAN TWO AD DITIONAL ADULTS 13
DESIGNATED BY THE PA RENT OR LEGAL GUARDI AN. 14
(2) “CAREGIVER” DOES NOT INCLUDE ANY DESI GNATED SCHOOL 15
PERSONNEL AUTHORIZED TO ADMINISTER MEDICA L CANNABIS TO A STUD ENT IN 16
ACCORDANCE WITH THE GUIDELINES ESTABLISH ED UNDER § 7–446 OF THE 17
EDUCATION ARTICLE. 18
(M) “CERTIFYING PROVIDER ” MEANS AN INDIVIDUAL WHO: 19
(1) (I) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 20
PRACTICE MEDICINE TH AT WAS ISSUED BY THE STATE BOARD OF PHYSICIANS 21
UNDER TITLE 14 OF THE HEALTH OCCUPATIONS ARTICLE; AND 22
2. IS IN GOOD STANDING WITH THE STATE BOARD OF 23
PHYSICIANS; 24
(II) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 25
PRACTICE DENTISTRY T HAT WAS ISSUED BY TH E STATE BOARD OF DENTAL 26 HOUSE BILL 556 21
EXAMINERS UNDER TITLE 4 OF THE HEALTH OCCUPATIONS ARTICLE; AND 1
2. IS IN GOOD STANDING WITH THE STATE BOARD OF 2
DENTAL EXAMINERS; 3
(III) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 4
PRACTICE PODIATRY TH AT WAS ISSUED BY THE STATE BOARD OF PODIATRIC 5
MEDICAL EXAMINERS UNDER TITLE 16 OF THE HEALTH OCCUPATIONS ARTICLE; 6
AND 7
2. IS IN GOOD STANDING WITH THE STATE BOARD OF 8
PODIATRIC MEDICAL EXAMINERS; 9
(IV) 1. HAS AN A CTIVE, UNRESTRICTED LICENSE TO 10
PRACTICE REGISTERED NURSING OR HAS AN ACTIVE , UNRESTRICTED 11
CERTIFICATION TO PRA CTICE AS A NURSE PRA CTITIONER OR A NURSE MIDWIFE 12
THAT WAS ISSUED BY THE STATE BOARD OF NURSING UNDER TITLE 8 OF THE 13
HEALTH OCCUPATIONS ARTICLE; AND 14
2. IS IN GOOD STANDING WITH THE STATE BOARD OF 15
NURSING; OR 16
(V) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 17
PRACTICE AS A PHYSIC IAN ASSISTANT ISSUED BY THE STATE BOARD OF PHYSICIANS 18
UNDER TITLE 15 OF THE HEALTH OCCUPATIONS ARTICLE; 19
2. HAS AN ACTIVE DELEGATION AGR EEMENT WITH A 20
PRIMARY SUPERVISING PHYSICIAN WHO IS A C ERTIFYING PROVIDER ; AND 21
3. IS IN GOOD STANDING WITH THE STATE BOARD OF 22
PHYSICIANS; 23
(2) HAS A STATE CONTROLLED DANG EROUS SUBSTANCES 24
REGISTRATION ; AND 25
(3) IS REGISTERED WITH THE DIVISION TO MAKE CANN ABIS 26
AVAILABLE TO PATIENT S FOR MEDICAL USE IN ACCORDANCE WITH REGU LATIONS 27
ADOPTED BY THE DIVISION. 28
(N) “COMMISSION” MEANS THE ALCOHOL, TOBACCO, AND CANNABIS 29
COMMISSION ESTABLISHE D UNDER ⸹ 1–302 OF THIS ARTICLE. 30
(O) “CONSUMER” MEANS AN INDIVIDUAL AT LEAST 21 YEARS OLD WHO 31 22 HOUSE BILL 556
PURCHASES CANNABIS O R CANNABIS PRODUCTS FOR PERSONAL USE BY 1
INDIVIDUALS AT LEAST 21 YEARS OLD. 2
(P) “CONTROL” MEANS: 3
(1) THE DECISION –MAKING AUTHORITY OVE R THE MANAGEMENT , 4
OPERATIONS, OR POLICIES THAT GUI DE A BUSINESS; OR 5
(2) AUTHORITY OVER THE O PERATION OF THE TECH NICAL ASPECTS 6
OF A BUSINESS. 7
(Q) “DELIVERY SERVICE ” MEANS A CANNABIS LICENSEE AUTHORIZED TO 8
DELIVER CANNABIS IN ACCORDANCE WITH A MICRO LICENSE TO OPERATE A 9
DISPENSARY. 10
(R) “DISPENSARY” MEANS AN ENTITY LICE NSED UNDER THIS TITL E THAT 11
ACQUIRES, POSSESSES, REPACKAGES , TRANSFERS, TRANSPORTS , SELLS, 12
DISTRIBUTES, OR DISPENSES CANNABI S OR CANNABIS PRODUC TS, INCLUDING 13
TINCTURES, AEROSOLS, OILS, AND OINTMENTS , RELATED SUPPLIES , AND 14
EDUCATIONAL MA TERIALS FOR USE BY Q UALIFYING PATIENTS , CAREGIVERS, OR 15
CONSUMERS THROUGH A STOREFRONT OR THRO UGH A DELIVERY SERVI CE, BASED 16
ON LICENSE TYPE . 17
(S) “DISPROPORTIONATELY IMPACTED AREA ” MEANS A GEOGRAPHIC A REA 18
IDENTIFIED BY THE OFFICE OF SOCIAL EQUITY THAT HAS BEEN 19
DISPROPORTIONATELY I MPACTED BY THE PROHI BITION OF CANNABIS . 20
(T) “DIVISION” MEANS THE CANNABIS REGULATION AND ENFORCEMENT 21
DIVISION ESTABLISHED UNDER THIS TITLE . 22
(U) (1) “EDIBLE CANNABIS PRODU CT” MEANS A CANNABIS PRO DUCT 23
INTENDED FOR HUMAN C ONSUMPTION BY ORAL INGESTI ON, IN WHOLE OR IN PART . 24
(2) “EDIBLE CANNABIS PRODU CT” INCLUDES A CANNABIS PRODUCT 25
THAT DISSOLVES OR DI SINTEGRATES IN THE M OUTH. 26
(3) “EDIBLE CANNABIS PRODU CT” DOES NOT INCLUDE ANY : 27
(I) CANNABIS CONCENTRATE ; 28
(II) CANNABIS–INFUSED PRODUCT , INCLUDING AN OIL , A WAX, 29
AN OINTMENT , A SALVE, A TINCTURE, A CAPSULE, A SUPPOSITORY , A DERMAL 30
PATCH, OR A CARTRIDGE ; OR 31 HOUSE BILL 556 23
(III) OTHER DOSAGE FORM TH AT IS RECOGNIZED BY THE 1
UNITED STATES PHARMACOPEIA , THE NATIONAL FORMULARY, OR THE U.S. FOOD 2
AND DRUG ADMINISTRATION AND IS APPROVED BY THE DIVISION. 3
(V) “GROWER” MEANS AN ENTITY LICE NSED UNDER THIS TITL E THAT: 4
(1) CULTIVATES, PACKAGES, OR DISTRIBUTES CANNA BIS; AND 5
(2) IS AUTHORIZED BY THE DIVISION TO PROVIDE C ANNABIS TO 6
OTHER CANNABIS LICENSEES AND REGIST ERED INDEPENDENT TES TING 7
LABORATORIES . 8
(W) “INCUBATOR SPACE ” MEANS A FACILITY OPE RATED IN ACCORDANCE 9
WITH § 36–401 OF THIS TITLE. 10
(X) “INDEPENDENT TESTING L ABORATORY ” MEANS A FACILITY , AN ENTITY, 11
OR A SITE THAT IS RE GISTERED WITH THE DIVISION TO PERFORM T ESTS RELATED 12
TO THE INSPECTION AN D TESTING OF CANNABI S AND PRODUCTS CONTA INING 13
CANNABIS. 14
(Y) “MICRO LICENSE” MEANS A LICENSE ISSU ED IN ACCORDANCE WIT H § 15
36–401 OF THIS TITLE. 16
(Z) “ON–SITE CONSUMPTION EST ABLISHMENT ” MEANS AN ENT ITY 17
LICENSED UNDER THIS TITLE TO DISTRIBUTE CANNABIS OR CANNABIS PRODUCTS 18
FOR ON–SITE CONSUMPTION . 19
(AA) “OWNER” MEANS A PERSON WITH AN OWNERSHIP INTERES T IN A 20
CANNABIS LICENSEE . 21
(BB) “OWNERSHIP INTEREST ” MEANS A DIRECT OR IN DIRECT EQUITY 22
INTEREST IN A CANNABIS LICENSEE , INCLUDING IN ITS SHA RES OR STOCK. 23
(CC) “PRINCIPAL OFFICER ” MEANS A BOARD MEMBER , A PRESIDENT, A VICE 24
PRESIDENT, A SECRETARY, A TREASURER, A PARTNER, AN OFFICER, OR A MANAGING 25
MEMBER, OR ANY OTHER INDIVIDUAL WITH A PROFIT SHARIN G, FINANCIAL 26
INTEREST, OR REVENUE SHARING A RRANGEMENT , INCLUDING A N INDIVIDUAL WITH 27
THE AUTHORITY TO CON TROL A CANNABIS LICE NSEE. 28
(DD) “PROCESSOR” MEANS AN ENTITY LICE NSED UNDER THIS TITL E THAT: 29
(1) TRANSFORMS CANNABIS INTO ANOTHER PRODUCT OR AN 30 24 HOUSE BILL 556
EXTRACT AND PACKAGES AND LAB ELS THE CANNABIS PRO DUCT; AND 1
(2) IS AUTHORIZED BY THE DIVISION TO PROVIDE C ANNABIS TO 2
LICENSED DISPENSARIE S AND REGISTERED IND EPENDENT TESTING 3
LABORATORIES . 4
(EE) “QUALIFYING PATIENT ” MEANS AN INDIVIDUAL WHO: 5
(1) HAS BEEN PROVIDED WITH A WRIT TEN CERTIFICATION BY A 6
CERTIFYING PROVIDER IN ACCORDANCE WITH A BONA FIDE PROVIDER –PATIENT 7
RELATIONSHIP ; AND 8
(2) IF UNDER THE AGE OF 18 YEARS, HAS A CAREGIVER . 9
(FF) “SOCIAL EQUITY APPLICA NT” MEANS AN APPLICANT F OR A CANNABIS 10
LICENSE OR CANNABIS REGISTRATION THAT : 11
(1) HAS AT LEAST 65% OWNERSHIP AND CONTRO L HELD BY ONE OR 12
MORE INDIVIDUALS WHO : 13
(I) HAVE LIVED IN A DISPROPORTIONAT ELY IMPACTED AREA 14
FOR AT LEAST 5 OF THE 10 YEARS IMMEDIATELY PRECEDIN G THE SUBMISSION OF 15
THE APPLICAT ION; OR 16
(II) ATTENDED A PUBLIC SC HOOL IN A DISPROPORTIONAT ELY 17
IMPACTED AREA FOR AT LEAST 5 YEARS; OR 18
(2) MEETS ANY OTHER CRIT ERIA ESTABLISHED BY THE COMMISSION 19
BASED ON THE RESULTS OF A DISPARITY STUDY . 20
(GG) “STANDARD LICENSE” MEANS A LICENSE ISSUED IN ACCORDANCE WITH 21
§ 36–401 OF THIS TITLE. 22
(HH) “TRANSPORTER ” MEANS AN ENTITY REGI STERED UNDER THIS TI TLE TO 23
TRANSPORT CANNABIS B ETWEEN CANNABIS LICE NSEES AND REGISTERED 24
INDEPENDENT TESTING LABORATORIES . 25
(II) (1) “USABLE CANNABIS ” MEANS THE DRIE D LEAVES AND FLOWERS 26
OF THE CANNABIS PLAN T. 27
(2) “USABLE CANNABIS ” DOES NOT INCLUDE SEE DLINGS, SEEDS, 28
STEMS, STALKS, OR ROOTS OF THE PLAN T OR THE WEIGHT OF A NY NONCANNABIS 29
INGREDIENTS COMBINED WITH CANNABIS , SUCH AS INGREDIENTS ADDED TO 30 HOUSE BILL 556 25
PREPARE A TOPICAL ADMINISTRATION . 1
(JJ) “WRITTEN CERTIFICATION ” MEANS A CERTIFICATIO N THAT: 2
(1) IS ISSUED BY A CERTI FYING PROVIDER TO A QUALIFYING PATIENT 3
WITH WHOM THE PROVID ER HAS A BONA FIDE P ROVIDER–PATIENT RELATIONSHIP ; 4
(2) INCLUDES A WRITTEN S TATEMENT CERTIFYING THAT , IN THE 5
CERTIFYING PROVIDER ’S PROFESSIONAL OPINI ON, AFTER HAVING COMPLET ED AN 6
ASSESSMENT OF THE PA TIENT’S MEDICAL HISTORY AN D CURRENT MEDICAL 7
CONDITION, THE PATIENT HAS A CO NDITION: 8
(I) THAT MEETS THE INCLU SION CRITERIA AND DO ES NOT 9
MEET THE EXCLUSION CRIT ERIA OF THE CERTIFYI NG PROVIDER ’S APPLICATION; 10
AND 11
(II) FOR WHICH THE POTENTI AL BENEFITS OF THE M EDICAL 12
USE OF CANNABIS WOUL D LIKELY OUTWEIGH TH E HEALTH RISKS FOR T HE PATIENT; 13
AND 14
(3) MAY INCLUDE A WRITTE N STATEMENT CERTIFYI NG THAT, IN THE 15
CERTIFYING PROVIDER ’S PROFESSIONAL OPINI ON, A 30–DAY SUPPLY OF MEDICA L 16
CANNABIS WOULD BE IN ADEQUATE TO MEET THE MEDICAL NEEDS OF THE 17
QUALIFYING PATIENT . 18
SUBTITLE 2. CANNABIS REGULATION AND ENFORCEMENT DIVISION. 19
36–201. 20
(A) THERE IS A CANNABIS REGULATION AND ENFORCEMENT DIVISION 21
ESTABLISHED WITHIN T HE OFFICE OF THE EXECUTIVE DIRECTOR OF THE 22
COMMISSION. 23
(B) (1) THERE IS A DIRECTOR OF THE DIVISION. 24
(2) THE GOVERNOR SHALL APPOIN T THE DIRECTOR OF THE 25
DIVISION WITH THE ADV ICE AND CONSEN T OF THE SENATE. 26
(3) THE DIRECTOR SERVES AT TH E PLEASURE OF THE GOVERNOR. 27
(C) THE DIRECTOR MUST HAVE THE TRAINING AN D EXPERIENCE , 28
INCLUDING KNOWLEDGE OF THE STATE CANNABIS INDUSTRY AN D REGULATORY 29
SYSTEM, THAT IS NEEDED TO DI RECT THE WORK OF THE DIVISION. 30 26 HOUSE BILL 556
(D) THE DIVISION MAY EMPLOY O FFICERS AND EMPLOYEE S AS PROVIDED 1
IN THE STATE BUDGET. 2
(E) THE DIVISION: 3
(1) SHALL BE RESPONSIBLE FOR CARRYING OUT THE REQUIREMENTS 4
AND DUTIES ESTABLISH ED UNDER THIS DIVISION; AND 5
(2) MAY RECOMMEND CHANGE S TO IMPROVE THE ADM INISTRATION 6
OF THIS DIVISION RELATING TO THE REGULATION OF CA NNABIS. 7
(F) THE DIVISION SHALL ADMINI STER AND ENFORCE THI S TITLE. 8
36–202. 9
(A) THE DIVISION SHALL: 10
(1) DEVELOP AND MAINTAIN A SEED–TO–SALE TRACKING SYSTEM 11
THAT TRACKS CANNABIS FROM EITHER THE SEED OR IMMATURE PLANT ST AGE 12
UNTIL THE CANNABIS I S SOLD TO A PATIENT , CAREGIVER, OR CONSUMER ; 13
(2) CONDUCT FINANCIAL AN D CRIMINAL BACKGROUN D 14
INVESTIGATIONS OF AN Y PERSON WHO SUBMITS AN APPLICATION FOR A CANNABIS 15
LICENSE OR A CANNABI S LICENSEE, AS REQUIRED UNDER TH IS TITLE; 16
(3) SOLICIT, EVALUATE, AND ISSUE OR DENY AP PLICATIONS FOR 17
CANNABIS LICENSES AN D CANNABIS REGISTRAT IONS, INCLUDING: 18
(I) LICENSES TO OPERATE A CANNABIS BUSINESS IN 19
ACCORDANCE WIT H THIS TITLE; AND 20
(II) REGISTRATION FOR IND EPENDENT TESTING 21
LABORATORIES , TRANSPORTERS , SECURITY GUARD COMPA NIES, AND WASTE 22
DISPOSAL COMPANIES ; 23
(4) AWARD OR DENY : 24
(I) A LICENSE TO OPERATE A CANNABIS BUSINESS IN 25
ACCORDANCE WITH THIS TITLE; AND 26
(II) REGISTRATION TO INDE PENDENT TESTING LABO RATORIES, 27
TRANSPORTERS , SECURITY GUARD COMPA NIES, WASTE DISPOSAL COMPA NIES, AND 28 HOUSE BILL 556 27
ANY OTHER TYPE OF CA NNABIS BUSINESS AUTH ORIZED BY THE DIVISION; 1
(5) CONDUCT ANNOUNCED AN D UNANNOUNCED INSPEC TIONS OF ANY 2
BUSINESS LICENSED OR REG ISTERED UNDER THIS T ITLE TO ENSURE COMPL IANCE 3
WITH THIS TITLE; 4
(6) AFTER A DETERMINATIO N THAT A VIOLATION O F THIS TITLE OR A 5
REGULATION ADOPTED U NDER THIS TITLE HAS OCCURRED, SUSPEND, FINE, 6
RESTRICT, OR REVOKE CANNABIS L ICENSES AND CANNABIS REGISTRATIONS , 7
WHETHER ACTIVE , EXPIRED, OR SURRENDERED , OR IMPOSE ANY OTHER PENALTY 8
AUTHORIZED BY THIS T ITLE OR ANY REGULATI ON ADOPTED UNDER THIS TITLE; 9
(7) (I) GIVE NOTICE AND HOLD A HEARING IN ACCORDA NCE WITH 10
TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE, FOR ANY: 11
1. CONTESTED CANNABIS L ICENSE DENIAL; OR 12
2. VIOLATION OF THIS TI TLE OR ANY REGULATIO N 13
ADOPTED UNDER THIS TITLE; 14
(II) ADMINISTER OATHS IN A PROCEEDING UNDER T HIS 15
SECTION; AND 16
(III) SUBJECT TO SUBSECTIO N (B)(3) OF THIS SECTION , ALLOW 17
THE PERSON AGAINST W HOM THE ACTION IS CO NTEMPLATED TO BE REP RESENTED 18
AT THE HEARING BY CO UNSEL; 19
(8) ADOPT REGULATIONS NECESSAR Y TO CARRY OUT ITS D UTIES 20
UNDER THIS TITLE; AND 21
(9) PERFORM ANY OTHER PO WER AUTHORIZED OR DU TY REQUIRED 22
UNDER THIS TITLE OR ANY OTHER PROVISION OF STATE LAW. 23
(B) THE DIVISION MAY: 24
(1) ISSUE A SUBPOENA FOR THE ATTENDANCE OF A WITNESS TO 25
TESTIFY OR THE PRODU CTION OF EVIDENCE IN CONNECTION WITH : 26
(I) ANY DISCIPLINARY ACT ION UNDER THIS TITLE ; OR 27
(II) ANY INVESTIGATION OR PROCEEDING INITIATED FOR AN 28
ALLEGED VIOLATION OF THIS TITLE; 29
28 HOUSE BILL 556
(2) DELEGATE THE HEARING AUTHORITY AUTHORIZED UNDER 1
SUBSECTION (A)(7) OF THIS SECTION; AND 2
(3) IF, AFTER DUE NOTICE , THE PERSON AGAINST W HOM A 3
DISCIPLINARY ACTION IS CONTEMPLAT ED DOES NOT APPEAR A T A HEARING, HEAR 4
AND DETERMINE THE MA TTER. 5
36–203. 6
(A) THE DIVISION SHALL: 7
(1) EVALUATE THE REGULAT IONS ADOPTED BY THE NATALIE M. 8
LAPRADE MEDICAL CANNABIS COMMISSION IN TITLE 10, SUBTITLE 62 OF THE 9
CODE OF MARYLAND REGULATIONS; AND 10
(2) ON OR BEFORE JULY 1, 2023, ADOPT EMERGENCY REGU LATIONS 11
TO: 12
(I) CARRY OUT THE LICENS URE REQUIREMENTS SPE CIFIED 13
UNDER THIS TITLE; 14
(II) IMPLEMENT PROCEDURES RELATED TO CANNABIS 15
APPLICATIONS, LICENSES, AND REGISTRATIONS IN ACCORDANCE WITH THIS TITLE; 16
(III) ASSIST THE COMPTROLLER IN THE CO LLECTION OF TAXES 17
IMPOSED ON THE SALE OF ADULT–USE CANNABIS UNDER § 11–104(K) OF THE TAX – 18
GENERAL ARTICLE; 19
(IV) IMPLEMENT INVENTORY MANAGEMENT AND TRACK ING 20
THAT DOES NOT DIFFER ENTIATE BETWEEN ADUL T–USE OR MEDICAL CANNA BIS OR 21
CANNABIS PRODUCTS BE FORE THE POINT OF SA LE, EXCEPT FOR PRODUCTS 22
ALLOWED BY THE DIVISION FOR SALE ONL Y TO PATIENTS AND CA REGIVERS; AND 23
(V) ESTABLISH OPERATING REQUIREMENTS FOR CAN NABIS 24
LICENSEES, INCLUDING REQUIREMEN TS FOR: 25
1. SECURITY, INCLUDING LIGHTING , PHYSICAL 26
SECURITY, VIDEO, AND ALARM REQUIREMEN TS; 27
2. SAFE AND SECURE DELI VERY, TRANSPORT, AND 28
STORAGE OF CANNABIS; 29
3. PREVENTING THE SALE OR DIVERSION OF CANN ABIS 30 HOUSE BILL 556 29
AND CANNABIS PRODUCT S TO PERSONS UNDER T HE AGE OF 21 YEARS; 1
4. PACKAGING AND LABELI NG OF CANNABIS AND 2
CANNABIS PRODUCTS , INCLUDING CHILD –RESISTANT PACKAGING ; AND 3
5. HEALTH AND SAFETY STANDARDS GOVERNING THE 4
CULTIVATION, MANUFACTURE , TESTING, AND DISPENSING OF CA NNABIS OR 5
CANNABIS PRODUCTS . 6
(B) THE EMERGENCY REGULAT IONS THAT THE DIVISION IS REQUIRED TO 7
ADOPT UNDER SUBSECTI ON (A) OF THIS SECTION SHAL L BE SUPPLEMENTAL TO THE 8
MEDICAL CA NNABIS REGULATIONS UNDER TITLE 10, SUBTITLE 62 OF THE CODE OF 9
MARYLAND REGULATIONS. 10
(C) ON OR BEFORE JULY 1, 2024, THE DIVISION SHALL ADOPT 11
NONEMERGENCY REGULATIONS NECESSAR Y TO CARRY OUT THE PROVISIONS OF 12
THIS TITLE. 13
(D) THE REGULATIONS ADOPT ED BY THE DIVISION UNDER THIS S ECTION 14
SHALL, TO THE EXTENT PRACTI CABLE, REGULATE MEDICAL AND ADULT–USE 15
CANNABIS IN THE SAME MANNER. 16
36–204. 17
(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE DIVISION 18
SHALL ESTABLISH AND MAINTAIN A STATE CANNABIS TESTIN G LABORATORY. 19
(2) (I) ON OR BEFORE JULY 1, 2023, THE MARYLAND 20
DEPARTMENT OF AGRICULTURE OR THE MARYLAND DEPARTMENT OF HEALTH 21
MAY ENTER INTO A MEM ORANDUM OF UNDERSTAN DING WITH THE DIVISION TO 22
TEST CANNABIS AT AN EXISTING STATE–OWNED LABORATORY IF DOING SO WO ULD 23
BE A MORE ECONOMIC A ND EFFICIENT ALTERNA TIVE TO THE ESTABLIS HMENT OF A 24
TESTING LABORATORY U NDER PARAGRAPH (1) OF THIS SUBSECTION . 25
(II) IF THE MARYLAND DEPARTMENT OF AGRICULTURE OR 26
THE MARYLAND DEPARTMENT OF HEALTH AND THE DIVISION DETERMINE TH AT 27
CO–LOCATING CANNABIS TE STING AT AN EXISTING STATE–OWNED LABORATORY IS 28
NOT OPERATIONALLY FE ASIBLE, SUFFICIENT FUNDING S HALL BE PROVIDED IN THE 29
ANNUAL BUDGET TO COM PLY WITH PARAGRAPH (1) OF THIS SUBSECTION . 30
(B) THE STATE CANNABIS TESTIN G LABORATORY IS RESPONSIBLE FOR: 31
(1) DEVELOPING AND MAINT AINING A CANNABIS LA BORATORY 32 30 HOUSE BILL 556
REFERENCE LIBRARY TH AT CONTAINS CANNABIS TESTING METHODOLOGIE S IN THE 1
AREAS OF: 2
(I) POTENCY; 3
(II) HOMOGENEITY ; 4
(III) DETECTION AND QUANTI TATION OF CONTAMINAN TS; AND 5
(IV) SOLVENTS; 6
(2) ESTABLISHING STANDAR D OPERATING PROCEDUR ES FOR 7
SAMPLE COLLECTION , PREPARATION , AND ANALYSIS OF CANN ABIS BY 8
INDEPENDENT TESTING LABORATORIES ; 9
(3) CONDUCTING PROFICIEN CY TESTING OF INDEPENDENT TESTING 10
LABORATORIES ; 11
(4) REMEDIATING PRO BLEMS WITH INDEPENDENT TESTING 12
LABORATORIES ; AND 13
(5) CONDUCTING COMPLIANC E TESTING ON CANNABI S SAMPLES 14
ANALYZED BY INDEPENDENT TESTING LABORATORIES . 15
(C) INDEPENDENT TESTING LABORATORIES LICENSED UNDER § 36–408 OF 16
THIS TITLE SHALL PRO VIDE MATERIALS FO R THE CANNABIS LABORATORY 17
REFERENCE LIBRARY . 18
(D) THE STATE CANNABIS TESTIN G LABORATORY SHALL H OLD MEDICAL 19
AND ADULT–USE CANNABIS TESTING TO THE SAME STANDARD S. 20
36–205. 21
(A) THE DIVISION MAY IMPOSE R EGISTRATION AND OTHE R FEES TO 22
DEFRAY THE COSTS OF : 23
(1) THE OPERATIONS OF TH E DIVISION AND THE COMMISSION; AND 24
(2) ADMINISTERING AND EN FORCING THIS DIVISIO N. 25
(B) IF FEES ARE IMPOSED U NDER SUBSECTION (A) OF THIS SECTION , THE 26
DIVISION SHALL DEPOSI T THE FEES COLLECTED IN THE CANNABIS REGULATION 27
AND ENFORCEMENT FUND ESTABLISHED UNDE R § 36–206 OF THIS SUBTITLE. 28 HOUSE BILL 556 31
36–206. 1
(A) IN THIS SECTION , “FUND” MEANS THE CANNABIS REGULATION AND 2
ENFORCEMENT FUND. 3
(B) THERE IS A CANNABIS REGULATION AND ENFORCEMENT FUND. 4
(C) THE PURPOSE OF THE FUND IS TO PROVID E FUNDS TO COVER THE 5
COSTS OF: 6
(1) THE OPERATION OF THE DIVISION AND THE COMMISSION; AND 7
(2) ADMINISTERING AND EN FORCING THIS DIVISION. 8
(D) THE COMPTROLLER SHALL ADM INISTER THE FUND AT THE DIRECTION 9
OF THE DIVISION. 10
(E) (1) THE FUND IS A SPECIA L, NONLAPSING FUND THAT IS NOT 11
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 12
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 13
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 14
(F) THE FUND CONSISTS OF : 15
(1) FEES DISTRIBUTED TO THE FUND UNDER § 36–205 OF THIS 16
SUBTITLE; 17
(2) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–1302.2 OF THE 18
TAX – GENERAL ARTICLE; 19
(3) INTEREST EARNINGS OF THE FUND; AND 20
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 21
THE BENEFIT OF THE FUND, IN ACCORDANCE WITH A NY CONDITIONS ADOPTE D BY 22
THE COMMISSION FOR THE AC CEPTANCE OF DONATION S OR GIFTS TO THE FUND. 23
(G) THE FUND MAY BE USED ONLY FOR CARRYING OUT THI S DIVISION. 24
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 25
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 26
32 HOUSE BILL 556
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 1
THE FUND. 2
(I) THE FUND IS SUBJECT TO AU DIT BY THE OFFICE OF LEGISLATIVE 3
AUDITS AS PROVIDED FO R IN § 2–1220 OF THE STATE GOVERNMENT ARTICLE. 4
(J) ON OR BEFORE MARCH 15 EACH YEAR, THE COMPTROLLER SHALL 5
PUBLISH ON ITS WEBSI TE A DETAILED REPORT ON REVENUE DISTRIBUTED TO AND 6
EXPENDITURES FROM TH E FUND. 7
SUBTITLE 3. MEDICAL USE OF CANNABIS. 8
36–301. 9
(A) THE DIVISION SHALL REGIST ER AS A CERTIFYING P ROVIDER AN 10
INDIVIDUAL WHO : 11
(1) MEETS THE REQUIREMEN TS OF THIS SUBTITLE ; AND 12
(2) SUBMITS THE REQUIRED APPLICATION TO THE DIVISION. 13
(B) TO BE REGISTERED AS A CERTIFYING PROVIDE R, A PROVIDER SHALL 14
SUBMIT AN APPLICATIO N TO THE DIVISION THAT INCLUDE S: 15
(1) THE REASONS FOR INCL UDING A PATIENT UNDE R THE CARE OF 16
THE PROVIDER FOR THE PURPOSES OF THIS SUBTITLE, INCLUDING THE PATIEN T’S 17
QUALIFYING MEDICAL C ONDITIONS; 18
(2) AN ATTESTATION THAT A STANDARD PATIENT E VALUATION WILL 19
BE COMPLETED , INCLUDING A HISTORY , A PHYSICAL EXAMINATI ON, A REVIEW OF 20
SYMPTOMS, AND OTHER RELEVANT MEDICAL INFORMATION ; AND 21
(3) THE PROVIDER ’S PLAN FOR THE ONGOI NG ASSESSMENT AND 22
FOLLOW–UP CARE OF A PATIENT AND FOR CO LLECTING AND ANALYZI NG DATA. 23
(C) THE DIVISION IS ENCOURAGE D TO APPROVE PROVIDE R APPLICATIONS 24
FOR THE FOLLOWING : 25
(1) A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL CONDITION 26
THAT RESULTS IN A PA TIENT BEING ADMITTED INTO HOSPICE OR REC EIVING 27
PALLIATIVE CARE ; 28
(2) A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL CONDITION 29 HOUSE BILL 556 33
OR THE TREATMENT OF A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL 1
CONDITION THAT PRODU CES: 2
(I) CACHEXIA, ANOREXIA, OR WASTING SYNDROME ; 3
(II) SEVERE OR CHRONIC PA IN; 4
(III) SEVERE NAUSEA ; 5
(IV) SEIZURES; OR 6
(V) SEVERE OR PERSISTENT MUSCLE SPASMS ; 7
(3) GLAUCOMA ; OR 8
(4) POST–TRAUMATIC STRESS DIS ORDER. 9
(D) THE DIVISION MAY NOT LIMI T TREATMENT OF A PAR TICULAR MEDICAL 10
CONDITION TO ONE CLA SS OF PROVIDERS . 11
(E) THE DIVISION MAY APPROVE APPLICATIONS THAT IN CLUDE ANY OTHER 12
CONDITION THAT IS SE VERE AND FOR WHICH O THER MEDICAL TREATME NTS HAVE 13
BEEN INEFFECTIVE IF THE SYMPTOMS REASONA BLY CAN BE EXPECTED TO BE 14
RELIEVED BY THE MEDI CAL USE OF CANNABIS . 15
(F) A CERTIFYING PROVIDER OR TH E SPOUSE OF A CERTIF YING PROVIDER 16
MAY NOT: 17
(1) RECEIVE ANY GIFT FRO M A CANNABIS LICENSE E; 18
(2) HOLD AN OWNERSHIP IN TEREST IN A CANNABIS LICENSEE OR A 19
BUSINESS THAT CONTRO LS A CANNABIS LICENS EE; OR 20
(3) RECEIVE ANY COMPENSA TION FROM A CANNABIS LICE NSEE. 21
(G) A CERTIFYING PROVIDER SHALL ISSUE EACH WRI TTEN CERTIFICATION 22
IN THE FORM REQUIRED BY THE DIVISION. 23
(H) A CERTIFYING PROVIDER MAY DISCUSS MEDICAL CANNABIS WITH A 24
PATIENT. 25
(I) (1) A CERTIFYING PROVIDER REGISTRATION IS VALID FOR 2 YEARS. 26
34 HOUSE BILL 556
(2) THE DIVISION SHALL GRANT OR DENY A RENEWAL OF A 1
REGISTRATION BASED O N THE PROVIDER ’S PERFORMANCE IN COM PLYING WITH 2
REGULATIONS ADOPTED BY THE DIVISION. 3
36–302. 4
(A) A QUALIFYING PATIENT O R CAREGIVER MAY OBTA IN MEDICAL 5
CANNABIS FROM A DISPENSARY LIC ENSED BY THE DIVISION. 6
(B) (1) A QUALIFYING PATIENT W HO IS AT LEAST 21 YEARS OLD MAY NOT 7
CULTIVATE MORE THAN FOUR CANNABIS PLANTS . 8
(2) IF TWO OR MORE QUALIF YING PATIENTS WHO AR E AT LEAST 21 9
YEARS OLD RESIDE AT THE SAME RESIDENCE , NOT MORE THAN FOUR CANNABIS 10
PLANTS MAY BE CULTIV ATED AT THAT RESIDEN CE. 11
(3) EXCEPT AS PROVIDED IN PARAGRAPHS (1) AND (2) OF THIS 12
SUBSECTION, A QUALIFYING PATIENT SHALL COMPLY WITH TH E CANNABIS 13
CULTIVATION REQUIREM ENTS ESTABLISHED UND ER § 5–601.2 OF THE CRIMINAL 14
LAW ARTICLE. 15
(C) A QUALIFYING PATIENT U NDER THE AGE OF 18 YEARS MAY OBTAIN 16
MEDICAL CANNABIS ONL Y THROUGH: 17
(1) THE QUALIFYING PATIE NT’S CAREGIVER; OR 18
(2) ANY DESIGNATED SCHOO L PERSONNEL AUTHORIZ ED TO 19
ADMINISTER MEDICAL C ANNABIS TO A STUDENT IN A CCORDANCE WITH THE 20
GUIDELINES ESTABLISH ED UNDER § 7–446 OF THE EDUCATION ARTICLE. 21
(D) A CAREGIVER MAY SERVE NOT MORE THAN FIVE QUALI FYING PATIENTS 22
AT ANY TIME. 23
(E) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 24
QUALIFYING PATIENT MAY HAV E NOT MORE THAN TWO CAREGI VERS. 25
(2) A QUALIFYING PATIENT U NDER THE AGE OF 18 YEARS MAY HAVE 26
NOT MORE THAN FOUR CAREG IVERS. 27
(F) A SALE OF CANNABIS OR CANNABIS PRODUCTS TO A QUALIFYING 28
PATIENT IS NOT SUBJE CT TO TAXES IMPOSED ON THE SALE OF CANNABIS OR 29
CANNABIS PRODUCTS UN DER § 11–104(K) OF THE TAX – GENERAL ARTICLE. 30
HOUSE BILL 556 35
(G) A QUALIFYING PATIENT M AY POSSESS UP TO : 1
(1) 120 GRAMS OF USABLE CANN ABIS; OR 2
(2) 36 GRAMS OF DELTA –9–TETRAHYDROCANNABINOL (THC) IN THE 3
CASE OF A CANNABIS –INFUSED PRODUCT . 4
(H) DESIGNATED SCHOOL PER SONNEL DESCRIBED IN SUBSECTION (C)(2) 5
OF THIS SECTION: 6
(1) MAY ADMINISTER TO A STUDENT ONLY MEDICAL CANNABIS: 7
(I) THAT IS OBTAINED THR OUGH THE STUDENT ’S CAREGIVER; 8
AND 9
(II) IN ACCORDANCE WITH D OSING, TIMING, AND DELIVERY 10
ROUTE INSTRUCTIONS A S PROVIDED BY THE CE RTIFYING PROVIDER ’S WRITTEN 11
INSTRUCTIONS ; AND 12
(2) ARE NOT REQUIRED TO REGISTER WITH THE COMMISSION UNDER 13
THIS SUBTITLE. 14
(I) A CAREGIVER MAY ADMINI STER MEDICAL CANN ABIS TO A STUDENT 15
WHO IS A QUALIFYING PATIENT OF THE CAREG IVER ON SCHOOL PROPE RTY, DURING 16
SCHOOL–SPONSORED ACTIVITIES , AND WHILE ON A SCHOO L BUS. 17
SUBTITLE 4. CANNABIS LICENSING. 18
36–401. 19
(A) (1) A PERSON MUST OBTAIN A CANNABIS LICENSE ISS UED BY THE 20
DIVISION TO OPERATE A CANNABIS BUSINESS . 21
(2) A CANNABIS LICENSE ISS UED UNDER THIS SUBTI TLE: 22
(I) AUTHORIZES THE HOLDER OF THE LICENSE TO OPERATE A 23
MEDICAL AND ADULT –USE CANNABIS BUSINES S; 24
(II) IS VALID FOR 5 YEARS ON INITIAL LIC ENSURE AND 5 YEARS 25
ON RENEWAL ; AND 26
(III) MAY BE TRANSFERRED ONLY IN ACCORDANCE WITH 27
SUBTITLE 5 OF THIS TITLE. 28 36 HOUSE BILL 556
(B) (1) THE DIVISION SHALL: 1
(I) ISSUE STANDARD LICENSES, MICRO LICENSES, INCUBATOR 2
SPACE LICENSES, AND ON–SITE CONSUMPTION LICENSES IN ACCORDAN CE WITH 3
THIS TITLE; 4
(II) ON OR BEFORE JULY 1, 2023, CONVERT LICENSES THAT 5
WERE ISSUED TO MEDICAL CANNABIS GRO WERS, PROCESSOR S, AND DISPENSAR IES, 6
INCLUDING THOSE BU SINESSES PREAPPROVED FOR LICENSURE , TO LICENSES TO 7
OPERATE A MEDICAL AN D ADULT–USE CANNABIS BUSINES S IF A CONVERSION FE E IS 8
PAID IN ACCORDANCE W ITH § 36–403 OF THIS SUBTITLE; 9
(III) SET PRODUCTION , PROCESSING, SALES, AND OTHER 10
LIMITATIONS AND REQU IREMENTS FOR ALL LIC ENSE TYPES; 11
(IV) ISSUE DISPENSAR Y LICENSES IN A MANN ER THAT 12
ENCOURAGES A BALANCE D GEOGRAPHIC DISTRIB UTION BASED ON POPUL ATION 13
AND MARKET DEMAND WI THIN A SPECIFIC COUN TY, AS WELL AS 14
CROSS–JURISDICTIONAL MARKE T DEMAND; 15
(V) CONSIDER MARKET DEMA ND IN THE ISSUANCE O F ALL 16
LICENSE TYPES; AND 17
(VI) ADOPT REGULATIONS RE QUIRING LICENSEES WHOSE 18
LICENSES WERE CONVER TED BY THE DIVISION UNDER ITEM (II) OF THIS 19
PARAGRAPH TO RESERVE A SPECIFIED AMOUNT OF CANNABIS F OR SOCIAL EQUITY 20
LICENSEES. 21
(2) THE DIVISION MAY: 22
(I) INSPECT A CANNABIS L ICENSEE TO ENSURE CO MPLIANCE 23
WITH THIS TITLE AND THE REGULATIONS ADOP TED UNDER THIS TITLE; 24
(II) REVOKE A CANNABIS LI CENSE IF GOOD FAITH EFFORTS 25
HAVE NOT BEEN MADE B Y THE CANNABIS LICENSEE TO ESTABLIS H A CANNABIS 26
BUSINESS WITHIN 18 MONTHS AFTER THE LICENSE WAS AWARDED; 27
(III) IMPOSE PENALTIES OR RESCIND THE LICENSE OF A 28
CANNABIS LICENSEE TH AT DOES NOT MEET THE STANDARDS FOR LICENS URE 29
ESTABLISHED UNDER THIS TITLE OR REGULATIONS ADOPTED UNDER THIS TITLE; 30
AND 31
HOUSE BILL 556 37
(IV) CONDITIONALLY AW ARD CANNABIS LICENSE S. 1
(C) (1) A STANDARD LICENSE AUTHORIZES THE HOLDER OF THE 2
LICENSE: 3
(I) FOR GROWERS , TO OPERATE MORE THAN 10,000 SQUARE 4
FEET, BUT NOT MORE THAN 300,000 SQUARE FEET , OF INDOOR CANOPY OR ITS 5
EQUIVALENT, AS CALCULATED BY THE DIVISION; 6
(II) FOR PROCESSORS , TO PROCESS MORE THAN 1,000 POUNDS 7
OF CANNABIS PER YEAR, AS CALCULATED BY THE DIVISION; AND 8
(III) FOR DISPENSARIES , TO OPERATE A STORE A T A PHYSICAL 9
LOCATION THAT SELLS CANNABIS OR CANNABIS PRODUCTS. 10
(2) A MICRO LICENSE AUTHORIZES THE HOLDER OF THE LICENSE: 11
(I) FOR GROWERS , TO OPERATE NO T MORE THAN 10,000 12
SQUARE FEET OF INDOO R CANOPY OR ITS EQUI VALENT, AS CALCULATED BY THE 13
DIVISION; 14
(II) FOR PROCESSORS , TO PROCESS NO T MORE THAN 1,000 15
POUNDS OF CANNABIS PER YEAR, AS CALCULATED BY THE DIVISION; AND 16
(III) FOR DISPENSARIES , TO OPERATE A DELIVER Y SERVICE 17
THAT SELLS CANNABIS OR CANNABIS PRODUCTS WITHOUT A PHYSICAL 18
STOREFRONT , PROVIDED THAT THE LICENSEE EMPLOYS NOT MORE THAN 10 19
EMPLOYEES. 20
(3) AN INCUBATOR SP ACE LICENSE AUTHORIZ ES THE HOLDER OF 21
THE LICENSE TO OPERATE A FACILITY WITHIN WHIC H A MICRO LICENSEE MAY 22
OPERATE IN ACCORDANC E WITH § 36–406 OF THIS SUBTITLE. 23
(4) AN ON–SITE CONSUMPTION LICENSE AUTHORIZES THE HOLDER 24
OF THE LICENSE TO OPERATE A FACILITY IN WHICH INDIVIDUALS CAN SMOK E, VAPE, 25
OR CONSUME CANNABIS IN ACCORDANCE WITH § 36–407 OF THIS SUBTITLE. 26
(D) THE DIVISION MAY NOT ISSU E MORE THAN THE FOLL OWING NUMBER 27
OF LICENSES PER TYPE , INCLUDING LICENSES C ONVERTED UNDER SUBSECTION 28
(B)(1)(II) OF THIS SECTION: 29
(1) FOR STANDARD LICENSES: 30
38 HOUSE BILL 556
(I) 75 GROWER LICENSES ; 1
(II) 100 PROCESSOR LICENSES ; AND 2
(III) 300 DISPENSARY LICENSES ; 3
(2) FOR MICRO LICENSES: 4
(I) 100 GROWER LICENSES ; 5
(II) 100 PROCESSOR LICENSES ; AND 6
(III) 200 DISPENSARY LICENSES; 7
(3) FOR INCUBATOR SPACE LICENSES, 10 LICENSES; AND 8
(4) FOR ON–SITE CONSUMPTION LICENSES, 50 LICENSES. 9
(E) (1) THIS SUBSECTION APPLI ES TO ALL LICENSES , INCLUDING 10
LICENSES CONVERTED U NDER SUBSECTION (B)(1)(II) OF THIS SECTION. 11
(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , A PERSON 12
MAY HAVE AN OWNERSHI P INTEREST IN OR CON TROL OF, INCLUDING THE POWER TO 13
MANAGE AND OPERATE , ONLY: 14
(I) FOR STANDARD LICENSES AND MICRO LICENSES: 15
1. ONE GROWER LICENSEE ; 16
2. ONE PROCESSOR LICENS EE; AND 17
3. NOT MORE THAN TWO DI SPENSARY LICENSEES ; 18
(II) FOR INCUBATOR SPACE LICENSES, NOT MORE THAN TWO 19
LICENSEES; AND 20
(III) FOR ON–SITE CONSUMPTION LIC ENSES, NOT MORE THAN 21
TWO LICENSEES . 22
(3) (I) A PERSON WHO OWNS OR C ONTROLS AN INCUBATOR SPACE 23
LICENSEE OR AN ON–SITE CONSUMPTION LIC ENSEE MAY NOT OWN OR CONTR OL ANY 24
OTHER CANNABIS LICEN SEE. 25
HOUSE BILL 556 39
(II) THE DIVISION SHALL ADOPT REGULATIONS LIMITING A 1
PERSON OR FUND FROM ACQUIRING A NONMAJOR ITY OWNERSHIP INTEREST IN 2
MULTIPLE CANNABIS BU SINESSES BEYOND THE LIMITATIONS ESTABLISHED UNDER 3
THIS SUBSECTION . 4
(F) (1) THE HOLDER OF A CANNABIS LICENSE MAY NOT SURR ENDER THE 5
LICENSE AND APPLY FO R A NEW LICENSE IN THE SAME OR A SIMILAR CATEGORY . 6
(2) THE LIMITATION UNDER PARAGRAPH (1) OF THIS SUBSECTION 7
APPLIES TO: 8
(I) AFFILIATES, HOLDING COMPANIES , PARENT COMPANIES , 9
OR OTHER RELATED ENT ITIES; 10
(II) INDIVIDUALS AND FIRM S WITH IDENTICAL OR 11
SUBSTANTIALLY IDENTI CAL BUSINESS OR ECON OMIC INTERESTS ; 12
(III) PERSONS WITH COMMON INVESTMENTS ; AND 13
(IV) FIRMS THAT ARE ECONO MICALLY DEPENDENT ON EACH 14
OTHER THROUGH CONTRA CTUAL OR OTHER RELAT IONSHIPS. 15
36–402. 16
(A) IT IS THE INTENT OF T HE GENERAL ASSEMBLY TO PRESERVE 17
PRODUCTION AVAILABIL ITY FOR NEW ADULT –USE CANNABIS CULTIVA TION 18
LICENSES ISSUED UNDER THIS SU BTITLE. 19
(B) (1) IF THE LICENSE OF A C ANNABIS LICENSEE IS CONVERTED BY THE 20
DIVISION UNDER § 36–401(B)(1)(II) OF THIS SUBTITLE , THE CANNABIS LICENSE E 21
SHALL: 22
(I) IF THE LICENSEE IS A GROWER, ADHERE TO THE EXPANSION 23
LIMITATIONS SPECIFIE D UNDER PARAGRAPH (2) OF THIS SUBSECTION ; AND 24
(II) PAY THE CONVERSION FEE REQUIRED UNDER § 36–403 OF 25
THIS SUBTITLE. 26
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 27
PARAGRAPH , ON OR BEFORE JANUARY 1, 2026, AN OPERATIONAL BUSIN ESS THAT 28
HOLDS A GROWER LICEN SE ISSUED BEFORE OCTOBER 1, 2022, MAY EXPAND THE 29
CANOPY OF ITS OPERAT IONS AS IT EXISTED O N OCTOBER 1, 2022, AND BASED ON 30
FACILITY SQUARE FOOT AGE OF INDOOR CANOPY SPACE OR ITS EQUIVAL ENT, AS 31 40 HOUSE BILL 556
CALCULATED BY THE DIVISION IN ACCORDANC E WITH SUBSECTION (D) OF THIS 1
SECTION, ONLY AS FOLLOWS: 2
1. IF THE CANOPY IS UNDER 25,000 SQUARE FEET , TO 3
25,000 SQUARE FEET OR BY 25%, WHICHEVER IS GREATER ; 4
2. IF THE CANOPY IS AT OR ABOVE 25,000 SQUARE FEET, 5
BY 25%; OR 6
3. IF THE CANNABIS LICE NSEE HAS A SQUARE FOOTAGE 7
EXPANSION THAT WAS PREAPPROVED BEFORE OCTOBER 1, 2022, THE 8
PREAPPROVED EXPANSIO N OR 25%, WHICHEVER IS GREATER . 9
(II) IF THE DIVISION AND AN OPERA TIONAL BUSINESS 10
DESCRIBED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH ARE UNABLE TO AGREE 11
AS TO THE SQUARE FOOTAGE OF TH E CANOPY EXPANSION OF THE LICENSEE’S 12
OPERATIONS AUTHORIZED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE 13
SQUARE FOOTAGE OF TH E CANOPY EXPANSION SHALL BE CALCULATED BASED ON 14
THE LICENSEE’S AVERAGE CANNABIS P RODUCTION IN CALENDAR YEARS 2021 AND 15
2022. 16
(III) A GROWER LICENSEE MAY NOT OPERATE AN INDOO R 17
CANOPY THAT EXCEEDS 300,000 SQUARE FEET OR ITS E QUIVALENT, AS 18
CALCULATED BY THE DIVISION IN ACCORDANC E WITH SUBSECTION (D) OF THIS 19
SECTION, IF THE GROWER LICENS EE: 20
1. HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE 21
BEFORE OCTOBER 1, 2022; AND 22
2. WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022. 23
(C) A BUSINESS THAT IS ISSUED A NEW CANNABI S LICENSE UNDER § 36–401 24
OF THIS SUBTIT LE MAY NOT OPERATE A N INDOOR CANOPY THAT EXCEEDS 300,000 25
SQUARE FEET FOR INDO OR CANOPIES OR ITS E QUIVALENT, AS CALCULATED BY THE 26
DIVISION. 27
(D) (1) (I) THIS PARAGRAPH APPLIE S TO ALL LICENSED GR OWERS. 28
(II) A LICENSED GROWER SHAL L ACCURATELY CALCULA TE AND 29
REPORT TO THE DIVISION ITS FLOWERIN G CANNABIS PLANT CAN OPY AREA. 30
(III) THE CANOPY AREA IS MEASURED USI NG THE OUTSIDE 31
BOUNDARIES OF ANY AR EA THAT INCLUDES FLO WERING CANNABIS PLAN TS AND ALL 32 HOUSE BILL 556 41
OF THE SPACE WITHIN THE BOUNDARIES . 1
(IV) FOR THE PURPOSE OF MEASURING CANOPY , 1 SQUARE 2
FOOT OF INDOOR CANOP Y IS EQUAL TO 4 SQUARE FEET OF OUTDO OR CANOPY. 3
(V) THE MAXIMUM AMOUNT OF SPACE FOR CANNABIS 4
PRODUCTION MAY NOT E XCEED THE CANOPY AUT HORIZED UNDER THIS S ECTION. 5
(VI) IF THE AMOUNT OF SQUA RE FEET OF PRODUCTION FOR A 6
LICENSED GROWER EXCE EDS THE CANOPY AUTHO RIZED UNDER THIS SEC TION AND 7
§ 36–401 OF THIS SUBTITLE, THE COMMISSION MAY : 8
1. REDUCE THE CANOPY OF THE LICENSED GROWER BY 9
THE SAME PERCENTAGE AS IT EXCEEDS THE AU THORIZED CANOPY ; AND 10
2. SEIZE, DESTROY, CONFISCATE, OR PLACE AN 11
ADMINISTRATIVE HOLD ON ANY FLOWERING CAN NABIS PLANTS PRODUCE D IN 12
EXCESS OF THE CANOPY . 13
(2) THE MAXIMUM AMOUNT OF CANOPY FOR AN OPERAT IONAL 14
BUSINESS THAT HOLDS A LICENSE ISSUED BEFORE OCTOBER 1, 2022, SHALL BE 15
CALCULATED BASED ON THE MA XIMUM CANOPY OF THE LICENSEE AS 16
SELF–REPORTED BY THE LICE NSEE AND RECORDED BY THE DIVISION ON OR 17
BEFORE DECEMBER 1, 2022. 18
36–403. 19
(A) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT HOLDS A 20
CANNABIS LICENSE AND WAS PHYSICALLY AN D ACTIVELY ENGAGED I N THE 21
CULTIVATION OR PROCE SSING OF MEDICAL CAN NABIS BEFORE OCTOBER 1, 2022. 22
(2) EACH GROWER OR PROCES SOR SHALL PAY THE FO LLOWING 23
ONE–TIME CONVERSION FEE BASED ON THE TOTAL GROSS REVENUE OF THE 24
GROWER OR PROCESSOR IN 2022: 25
(I) $100,000 IF THE GROSS REVENUE WAS LESS THAN 26
$1,000,000; 27
(II) $500,000 IF THE GROSS REVENUE WAS AT LEAST 28
$1,000,000, BUT NOT MORE THAN $5,000,000; 29
(III) $1,000,000 IF THE GROSS REVENUE WAS MORE THAN 30
$5,000,000, BUT NOT MORE THAN $10,000,000; 31 42 HOUSE BILL 556
(IV) $1,500,000 IF THE GROSS REVENUE WAS MORE THAN 1
$10,000,000, BUT NOT MORE THAN $15,000,000; 2
(V) $2,000,000 IF THE GROSS REVENUE WAS MORE THAN 3
$15,000,000, BUT NOT MORE THAN $20,000,000; OR 4
(VI) $2,500,000 IF THE GROSS REVENUE WAS MORE THAN 5
$20,000,000. 6
(3) IF A BUSINESS HOLDS A GROWER AND PROCESSOR LICENSE, THE 7
FEE SHALL BE BASED O N TOTAL GROSS REVENU E FROM BOTH LICENSE TYPES. 8
(B) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT HOLDS A 9
CANNABIS LICENSE AND WAS PHYSICALLY AND A CTIVELY ENGAGED IN THE 10
DISPENSING OF MEDICA L CANNABIS BEFORE OCTOBER 1, 2022. 11
(2) EACH DISPENSARY SHALL PAY THE FOLLOWING ON E–TIME 12
CONVERSION FEE BASED ON THE GROSS REVENUE OF THE DISPENSARY IN 2022: 13
(I) $100,000 IF THE GROSS REVENUE WAS LESS THAN 14
$1,000,000; 15
(II) $250,000 IF THE GROSS REVENUE WAS AT LEAST 16
$1,000,000, BUT NOT MORE THAN $5,000,000; 17
(III) $500,000 IF THE GROSS REVENUE WAS MORE THAN 18
$5,000,000, BUT NOT MORE THAN $10,000,000; 19
(IV) $1,000,000 IF THE GROSS REVENUE WAS MORE THAN 20
$10,000,000, BUT NOT MORE THAN $15,000,000; 21
(V) $1,500,000 IF THE GROSS REVENUE WAS MORE THAN 22
$15,000,000, BUT NOT MORE THAN $20,000,000; OR 23
(VI) $2,000,000 IF THE GROSS REVENUE WAS MORE THAN 24
$20,000,000. 25
(C) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINE SS THAT: 26
(I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE 27
OCTOBER 1, 2022; AND 28
HOUSE BILL 556 43
(II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022. 1
(2) A GROWER OR PROCESSOR SHALL PAY A ONE –TIME CONVERSION 2
FEE OF $50,000. 3
(3) A DISPENSARY SHALL PAY A ONE–TIME CONVERSION FEE OF 4
$25,000. 5
(D) (1) THIS SUBSECTION APPLI ES ONLY TO AN APPLIC ANT APPLYING 6
FOR A CANNABIS LICEN SE UNDER § 36–404 OF THIS SUBTITLE. 7
(2) AN APPLICANT FOR A ST ANDARD LICENSE , AN INCUBATOR SPACE 8
LICENSE, OR AN ON–SITE CONSUMPTION LICENSE SHALL PAY AN APPLICATION FEE 9
OF $5,000. 10
(3) AN APPLICANT FOR A MI CRO LICENSE SHALL PA Y AN 11
APPLICATION FEE OF $1,000. 12
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE DIVISION 13
SHALL ESTABLISH RENE WAL FEES FOR ALL CAN NABIS LICENSES. 14
(2) THE RENEWAL FEES ESTA BLISHED UNDER PARAGR APH (1) OF 15
THIS SUBSECTION MAY NOT EXCEED 10% OF THE CANNABIS LICE NSEE’S ANNUAL 16
GROSS REVENUE . 17
(F) ALL FEES COLLECTED UN DER THIS SECTION SHA LL BE PAID TO THE 18
DIVISION. 19
36–404. 20
(A) (1) ON OR BEFORE JANUARY 1, 2024, THE DIVISION SHALL BEGIN 21
ISSUING FIRST ROUND LICENSES IN ACCORDAN CE WITH SUBSECTION (D) OF THIS 22
SECTION. 23
(2) ON OR AFTER MAY 1, 2024, THE DIVISION SHALL BEGIN ISSUING 24
SECOND ROUND LICENSE S IN ACCORDANCE WITH SUBSECTIONS (E) OR (F) OF THIS 25
SECTION. 26
(3) SUBJECT TO PARAGRAPHS (1) AND (2) OF THIS SUBSECTION , THE 27
DIVISION MAY ISSUE LI CENSES IN ACCORDANCE WITH SUBSECTION (G) OF THIS 28
SECTION. 29
(B) (1) THE DIVISION SHALL: 30 44 HOUSE BILL 556
(I) CONDUCT EXTENSIVE OU TREACH TO SMALL , MINORITY, 1
AND WOMEN BUSINESS OWNERS AND ENTREPREN EURS WHO MAY HAVE AN INTEREST 2
IN APPLYING FOR A CA NNABIS LICENSE BEFOR E ACCEPTING AND PROC ESSING 3
CANNABIS LICENSE APP LICATIONS; 4
(II) CONNECT POTENTIAL SO CIAL EQUITY APPLICAN TS WITH 5
THE OFFICE OF SOCIAL EQUITY; 6
(III) ACCEPT AND PROCESS APPLICATIONS FOR LICENSES: 7
1. IN RESPONSE TO A REQ UEST FOR APPLICATION S 8
ISSUED UNDER THIS SECTION; 9
2. FOR A PERIOD OF 30 CALENDAR DAYS ; AND 10
3. BEGINNING ON A DATE THAT IS AT LEAST 60 11
CALENDAR DAYS AFTER THE DATE ON WHICH TH E DIVISION ISSUED THE REQUEST 12
FOR APPLICATIONS ; 13
(IV) AWARD CANNABIS LICEN SES IN AT LEAST TWO SEPARATE 14
ROUNDS IN ACCORDANCE WITH THIS SECTION ; AND 15
(V) RESERVE A REASONABLE NUMBER OF LICENSES T O ALLOW 16
MICRO LICENSES TO TRANSITIO N TO STANDARD LICENSES, AS DETERMINED IN 17
REGULATIONS BY THE DIVISION. 18
(2) THE DIVISION MAY SUSPEND, FINE, RESTRICT, OR REVOKE A 19
CANNABIS LICENSE IF IT IS DETERMINED THA T A CANNABIS LICENSE E HAS NOT 20
COMPLIED WITH STATEM ENTS IN THE APPLICAT ION, INCLUDING STATEMENTS 21
ABOUT STANDARDS OF OPERATION OR EMPL OYMENT PRACTICES REL ATED TO 22
DIVERSITY, EQUITY, AND INCLUSION . 23
(3) THE DIVISION MAY NOT: 24
(I) ACCEPT MORE THAN ONE APPLICATION PER LICE NSE TYPE 25
FROM AN APPLICANT IN ANY ROUND; 26
(II) ACCEPT MORE THAN TWO APPLICATIONS FROM AN 27
APPLICANT IN ANY ROUND ; 28
(III) REQUIRE THAT AN APPL ICANT POSSESS OR OWN A 29
PROPERTY OR FACILITY TO OPERATE A CANNABI S BUSINESS AT THE TI ME OF 30 HOUSE BILL 556 45
APPLICATION; OR 1
(IV) REGARDLESS OF THE NU MBER OF LICENSE AWAR DS 2
AUTHORIZED IN EACH R OUND, AWARD MORE LICENSES THAN THE TOTAL NUMBER 3
OF LICENSES AUTHORIZ ED UNDER § 36–401(D) OF THIS SUBTITLE. 4
(4) THE DIVISION MAY ADOPT RE GULATIONS CONCERNING THE 5
EQUITY AND FAIRNESS OF THE POOL OF APPLI CANTS THROUGHOUT THE 6
APPLICATION PROCESS . 7
(C) TO BE LICENSED, AN APPLICANT SHA LL SUBMIT TO THE DIVISION: 8
(1) AN APPLICATION FEE I N ACCORDANCE WITH § 36–403 OF THIS 9
SUBTITLE; AND 10
(2) AN APPLICATION DEVEL OPED BY THE DIVISION UNDER THIS 11
TITLE. 12
(D) (1) FOR THE FIRST ROUND , SUBJECT TO PARAGRAPH S (2) AND (3) OF 13
THIS SUBSECTION , THE DIVISION SHALL ENTER EACH SOCIAL EQUITY A PPLICANT 14
THAT MEETS THE MINIM UM QUALIFICATIONS ES TABLISHED BY THE DIVISION INTO 15
A LOTTERY AND ISSUE TO SOCIAL EQUITY APP LICANTS NOT MORE THAN: 16
(I) FOR STANDARD LICENSES: 17
1. 20 GROWER LICENSES ; 18
2. 40 PROCESSOR LICENSES ; AND 19
3. 80 DISPENSARY LICENSES ; 20
(II) FOR MICRO LICENSES: 21
1. 30 GROWER LICENSES ; 22
2. 30 PROCESSOR LICENSES ; AND 23
3. 75 DISPENSARY LICENSES ; AND 24
(III) 10 INCUBATOR SPACE LICE NSES. 25
(2) THE DIVISION SHALL DETE RMINE WHETHER AN APP LICATION 26
MEETS THE MINIMUM QU ALIFICATIONS FOR THE LOTTERY ON A PASS –FAIL BASIS, 27 46 HOUSE BILL 556
AS DETERMINED BY THE DIVISION, AFTER EVALUATING : 1
(I) A DETAILED OPERATION AL PLAN FOR THE SAFE , SECURE, 2
AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS; 3
(II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF 4
SUCCESS AND SUFFICIENT BUSINESS ABILITY AND EXPERIEN CE ON THE PART OF 5
THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING 6
CONDITIONS; AND 7
(III) A DETAILED DIVERSITY PLAN. 8
(3) FIRST ROUND APPLICATI ON SUBMISSIONS FOR A LL LICENSE 9
TYPES ARE LIMITED TO SOCIAL EQUITY APPLIC ANTS. 10
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSE CTION, IF THE 11
OFFICE OF THE ATTORNEY GENERAL DETERMINES TH AT THE APPLICANTS 12
AWARDED A LICENSE UN DER SUBSECTION (D) OF THIS SECTION ARE NOT DIVERSE 13
AND A DISPARITY STUD Y DETERMINES THAT TH ERE IS A COMPELLING INTEREST TO 14
IMPLEMENT REMEDIAL M EASURES TO ASSIST MINORITIES AND WOMEN IN THE 15
CANNABIS INDUSTRY , THE DIVISION SHALL ENTER EACH APPLICANT THAT MEETS 16
THE MINIMUM QUALIFIC ATIONS ESTABLISHED B Y THE DIVISION INTO A LOTTE RY 17
AND ISSUE TO THE APPLICANTS NOT MORE THAN: 18
(I) FOR STANDARD LICENSE S: 19
1. 25 GROWER LICENSES ; 20
2. 25 PROCESSOR LICENSES ; AND 21
3. 120 DISPENSARY LICENSES ; 22
(II) FOR MICRO LICENSES: 23
1. 70 GROWER LICENSES ; 24
2. 70 PROCESSOR LICENSES ; AND 25
3. 125 DISPENSARY LICENSES ; 26
(III) 10 INCUBATOR SPACE LICE NSES; AND 27
(IV) 15 ON–SITE CONSUMPTION LIC ENSES. 28 HOUSE BILL 556 47
(2) THE DIVISION SHALL DETERM INE WHETHER AN APPLI CATION 1
MEETS THE MINIMUM QU ALIFICATIONS FOR A L OTTERY BASED ON A PA SS–FAIL 2
BASIS, AS DETERMINED BY THE DIVISION, AFTER EVALUATING : 3
(I) A DETAILED OPERATION AL PLAN FOR THE SAFE , SECURE, 4
AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS; 5
(II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF 6
SUCCESS AND SUFFICIENT BUSINESS ABILITY AND EXPERIEN CE ON THE PART OF 7
THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING 8
CONDITIONS; 9
(III) A DETAILED DIVERSITY PLAN; AND 10
(IV) REMEDIAL MEASURES ES TABLISHED IN ACCORDA NCE 11
WITH A DISPARITY STU DY. 12
(F) (1) SUBJECT TO PARAGRAPH S (2) AND (3) OF THIS SUBSECTION , IF 13
THE OFFICE OF THE ATTORNEY GENERAL DETERMINES TH AT THE APPLICANTS 14
AWARDED A LICENSE UN DER SUBSECTION (D) OF THIS SECTION ARE DIVERSE 15
REGARDLESS OF THE RE SULTS OF A DISPARITY STUDY, THE DIVISION SHALL ENTER 16
EACH APPLICANT THAT MEETS THE MINIMUM QU ALIFICATIONS ESTABL ISHED BY 17
THE DIVISION INTO A LOTTE RY AND ISSUE TO THE APPLICANTS NOT MORE THAN: 18
(I) FOR STANDARD LICENSES: 19
1. 25 GROWER LICENSES ; 20
2. 25 PROCESSOR LICENSES ; AND 21
3. 120 DISPENSARY LICENSES ; 22
(II) FOR MICRO LICENSES: 23
1. 70 GROWER LICENSES; 24
2. 70 PROCESSOR LICENSES ; AND 25
3. 125 DISPENSARY LICENSES ; 26
(III) 10 INCUBATOR SPACE LICE NSES; AND 27
48 HOUSE BILL 556
(IV) 15 ON–SITE CONSUMPTION LIC ENSES. 1
(2) THE DIVISION SHALL DETERM INE WHETHER AN APPLI CATION 2
MEETS THE MINIMUM QU ALIFICATIONS FOR A LOTTERY BASED ON A PASS–FAIL 3
BASIS, AS DETERMINED BY THE DIVISION, AFTER EVALUATING : 4
(I) A DETAILED OPERATION AL PLAN FOR THE SAFE , SECURE, 5
AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS; 6
(II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHOOD OF 7
SUCCESS AND SUFFICIENT BUSINESS ABILITY AND EXPERIEN CE ON THE PART OF 8
THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING 9
CONDITIONS; 10
(III) A DETAILED DIVERSITY PLAN; AND 11
(IV) FOR ALL LICENSE TYPES EX CEPT MICRO LICENSES , 12
WHETHER OR NOT THE APPLICANT QUALIFIES AS A SOCIA L EQUITY APPLICANT . 13
(3) SECOND ROUND APPLICAT ION SUBMISSIONS FOR MICRO 14
LICENSES UNDER THIS SUBSECTION ARE LIMIT ED TO SOCIAL EQUITY APPLICANT S. 15
(G) (1) FOR CANNABIS LICENSE AWARDS SUBSEQUENT TO THE ROUND 16
SPECIFIED UNDER PARA GRAPH (2) OF THIS SUBSECTION , THE DIVISION SHALL 17
AWARD LICENSES AS NE EDED IN ACCORDANCE W ITH A MARKET DEMAND STUDY. 18
(2) THE DIVISION: 19
(I) SHALL DETERMINE WHET HER AN APPLICATION M EETS THE 20
MINIMUM QUALIFICATIO NS FOR A LOTTERY BA SED ON FACTORS THAT IT DEVELOPS; 21
AND 22
(II) MAY LIMIT SOME OR AL L OF THE LICENSES IS SUED UNDER 23
THIS PARAGRAPH TO SO CIAL EQUITY APPLICAN TS OR MINORITY BUSIN ESS 24
APPLICANTS, IF DOING SO IS NEEDE D TO ENSURE DIVERSIT Y AND INCLUSION IN T HE 25
INDUSTRY, AS WARRANTED BY THE DISPARITY STUDY . 26
36–405. 27
(A) A LOCAL JURISDICTION M AY: 28
(1) ESTABLISH REASONABLE ZONING REQUIREMENTS FOR CANNABIS 29
BUSINESSES; AND 30 HOUSE BILL 556 49
(2) DECIDE HOW TO DISTRI BUTE ITS ALLOCATION OF REVENUE 1
UNDER § 2–1302.2 OF THE TAX – GENERAL ARTICLE. 2
(B) A LOCAL JURISDICTION MAY NOT: 3
(1) IMPOSE A TAX ON CANN ABIS; 4
(2) ESTABLISH ZONING OR OTHER REQUIREMENTS T HAT UNDULY 5
BURDEN A CANNABIS LI CENSEE; 6
(3) PROHIBIT TRANSPORTAT ION THROUGH OR DELIVERIES WITHIN 7
THE LOCAL JURISDICTION BY CANNABIS ESTABLIS HMENTS LOCATED IN OT HER 8
JURISDICTIONS; 9
(4) PREVENT AN ENTITY WHOSE LICENSE MAY BE CONVERTED UNDER 10
§ 36–401(B)(1)(II) OF THIS SUBTITLE AND THAT IS IN COMPLIANCE WIT H ALL 11
RELEVANT MEDICAL CAN NABIS REGULATIONS FR OM BEING GRANTED THE LICENSE 12
CONVERSION ; OR 13
(5) NEGOTIATE OR ENTER I NTO AN AGREEMENT WIT H A CANNABIS 14
ESTABLISHMENT OR A C ANNABIS ESTABLISHMEN T APPLICANT REQUIRIN G THAT 15
THE CANNABIS ESTA BLISHMENT OR APPLICA NT PROVIDE MONEY , DONATIONS, 16
IN–KIND CONTRIBUTIONS , SERVICES, OR ANYTHING OF VALUE TO THE LOCAL 17
JURISDICTION. 18
(C) THE USE OF A FACILITY BY A CANNABIS LICENS EE IS NOT REQUIRED T O 19
BE SUBMITTED TO , OR APPROVED BY , A COUNTY OR MUNICIPA L ZONING BOARD , 20
AUTHORITY, OR UNIT IF IT WAS PR OPERLY ZONED AND OPE RATING ON OR BEFORE 21
JANUARY 1, 2023. 22
36–406. 23
(A) THE DIVISION MAY ISSUE IN CUBATOR SPACE LICENS ES AUTHORIZING 24
AN ENTITY TO OPERATE A LICENSED PREMISES IN WHICH MICRO LICENSEES MAY 25
OPERATE A CANNABIS BUSINESS . 26
(B) SUBJECT TO SUBSECTION (C) OF THIS SECTION , THE MARYLAND 27
ECONOMIC DEVELOPMENT CORPORATION , IN CONSULTATION WITH THE DIVISION, 28
SHALL ACQUIRE AND CO NSTRUCT OR REFURBISH AT LEAST ONE FACILIT Y TO 29
OPERATE AN INCUBATOR SPACE. 30
(C) THE MARYLAND ECONOMIC DEVELOPMENT CORPORATION MAY ENTER 31 50 HOUSE BILL 556
INTO A MEMORANDUM OF UNDERSTANDING WITH A NONPROFIT ORGANIZATI ON TO 1
OPERATE A FACILITY U NDER SUBSECTION (B) OF THIS SECTION IF T HE DIVISION 2
AND THE CORPORATION PROVIDE O VERSIGHT OF THE FACI LITY. 3
(D) THE DIVISION SHALL ADOPT REGULATIONS TO ESTAB LISH A 4
MARYLAND INCUBATOR PROGRAM BASED ON THE BEST PRACTICES IN OT HER 5
STATES. 6
36–407. 7
(A) (1) THE DIVISION MAY ISSUE ON –SITE CONSUMPTION LIC ENSES 8
AUTHORIZING AN ENTIT Y TO OPERATE A LICEN SED PREMISES IN WHIC H CANNABIS 9
MAY BE CONSUMED IN A CCORDANCE WITH THIS TITLE AND ANY REGULA TIONS 10
ADOPTED UNDER THIS TITLE. 11
(2) AN ON–SITE CONSUMPTION EST ABLISHMENT MAY OPERA TE ONLY 12
IF THE COUNTY AND, IF APPLICABLE, THE MUNICIPAL ITY, WHERE THE BUSINESS I S 13
LOCATED HA VE ISSUED A PERMIT OR L ICENSE THAT EXPRESSL Y ALLOWS THE 14
OPERATION OF THE ON –SITE CONSUMPTION EST ABLISHMENT . 15
(B) SUBJECT TO THE LIMITA TIONS IN § 36–405 OF THIS SUBTITLE , A 16
COUNTY AND, IF APPLICABLE, A MUNICIPAL ITY MAY: 17
(1) PROHIBIT THE OPERATI ON OF ON –SITE CONSUMPTION 18
ESTABLISHMENTS ; 19
(2) PROHIBIT OR RESTRICT THE SMOKING OR VAPIN G OF CANNABIS 20
AT ON–SITE CONSUMPTION EST ABLISHMENTS ; OR 21
(3) ADOPT ZONING AND PLANNING REQUIREMENTS FOR ON –SITE 22
CONSUMPTION ESTABLISH MENTS. 23
(C) (1) AN ON–SITE CONSUMPTION LICENSE AUTHORIZES A N ENTITY TO 24
DISTRIBUTE CANNABIS OR CANNABIS PRODUCTS FOR ON–SITE CONSUMPTION . 25
(2) AN ON–SITE CONSUMPTION LIC ENSE DOES NOT AUTHOR IZE THE 26
HOLDER OF THE LICENSE TO: 27
(I) CULTIVATE CANNABIS ; 28
(II) PROCESS CANNABIS OR CANNABIS–INFUSED PRODUCTS ; OR 29
(III) ADD CANNABIS TO FOOD PREPARED OR SERVED O N THE 30 HOUSE BILL 556 51
PREMISES. 1
(D) A FOOD SERVICE FACILIT Y, AS DEFINED IN § 21–301 OF THE HEALTH – 2
GENERAL ARTICLE, MAY APPLY FOR A LICE NSE TO OPERATE AN ON –SITE 3
CONSUMPTION ESTABLIS HMENT. 4
(E) THE DIVISION SHALL: 5
(1) MAINTAIN A LIST OF A LL ON–SITE CONSUMPTION 6
ESTABLISHMENTS IN TH E STATE; AND 7
(2) MAKE THE LIST AVAILA BLE ON ITS WEBSITE . 8
(F) AN ON–SITE CONSUMPTION EST ABLISHMENT MAY NOT : 9
(1) ALLOW ON–DUTY EMPLOYEES OF TH E BUSINESS TO CON SUME 10
CANNABIS ON THE LICENSED PREMISE S; 11
(2) DISTRIBUTE OR ALLOW THE DISTRIBUTION OF FREE SAMPLES OF 12
CANNABIS ON THE LICENSED PREMISE S; 13
(3) ALLOW THE CONSUMPTIO N OF ALCOHOL ON THE LICENSED 14
PREMISES; 15
(4) ALLOW THE SMOKING OR VAPING OF TOBACCO OR TOBACCO 16
PRODUCTS ON THE LICENSED PREMISE S; 17
(5) ALLOW AN ACTIVITY ON THE LICENSED PREM ISES THAT WOULD 18
REQUIRE AN ADDITIONA L LICENSE UNDER THIS TITLE, INCLUDING GROWING , 19
PROCESSING, OR DISPENSING ; 20
(6) ALLOW THE USE OR CONSUMPTION OF CANNABIS BY A PAT RON 21
WHO DISPLAYS ANY VIS IBLE SIGNS OF INTOXI CATION; OR 22
(7) ADMIT ONTO THE LICENSED PRE MISES AN INDIVIDUAL WHO IS 23
UNDER THE AGE OF 21 YEARS. 24
(G) AN ON–SITE CONSUMPTION EST ABLISHMENT SHALL : 25
(1) REQUIRE ALL EMPLOYEE S TO SUCCESSFULLY CO MPLETE AN 26
ANNUAL RESPONSIBLE V ENDOR TRAINING PROGR AM AUTHORIZED UNDER THIS 27
TITLE; AND 28
52 HOUSE BILL 556
(2) ENSURE THAT THE DISP LAY AND CONSUMPTION OF CANNABIS OR 1
CANNABIS PRODUCT S ARE NOT VISIBLE FROM OUT SIDE OF THE LICENSED 2
PREMISES. 3
(H) (1) AN ON–SITE CANNABIS ESTABL ISHMENT SHALL EDUCAT E 4
CONSUMERS BY PROVIDI NG INFORMATIONAL MAT ERIALS REGARDING THE SAFE 5
CONSUMPTION OF CANNA BIS. 6
(2) THE EDUCATIONAL MATER IALS PROVIDED UNDER PARAG RAPH 7
(1) OF THIS SUBSECTION MUST BE BASED ON THE REQUIREMENTS ESTABLI SHED BY 8
THE CANNABIS PUBLIC HEALTH ADVISORY COUNCIL ESTABLISHED U NDER § 9
13–4502 OF THE HEALTH – GENERAL ARTICLE. 10
(I) THIS SECTION DOES NOT PROHIBIT A COUNTY OR MUNICIPAL ITY FROM 11
ADOPTING ADDITIONAL REQUIREMENTS FOR EDU CATION ON THE SAFE 12
CONSUMPTION OF CANNA BIS ON THE PREMISES OF A LICENSED ON –SITE 13
CONSUMPTION ESTABLIS HMENT. 14
(J) A PERSON MAY HAVE AN O WNERSHIP INTEREST IN OR CONTROL OF , 15
INCLUDING THE POWER TO MANAGE AND OPER ATE, TWO ON–SITE CONSUMPTION 16
ESTABLISHMENTS LICEN SED UNDER THIS SECTI ON. 17
36–408. 18
(A) (1) THE DIVISION SHALL REGIST ER AT LEAST ONE INDE PENDENT 19
TESTING LABORATORY T O TEST CANNABIS AND CANNABIS PRODUCTS TH AT ARE TO 20
BE SOLD IN THE STATE. 21
(2) THE DIVISION SHALL HOLD MEDICAL A ND ADULT–USE CANNABIS 22
TESTING TO THE SAME STANDARDS. 23
(B) TO BE REGISTERED AS A N INDEPENDENT TESTIN G LABORATORY , A 24
LABORATORY MUST: 25
(1) MEET THE APPLICATION REQUIREMENTS ESTABLI SHED BY THE 26
DIVISION; 27
(2) PAY AN APPLICA TION FEE DETERMINED BY THE DIVISION; AND 28
(3) MEET THE STANDARDS A ND REQUIREMENTS FOR 29
ACCREDITATION , INSPECTION, AND TESTING ESTABLIS HED BY THE DIVISION. 30
(C) (1) AN INDEPENDENT TESTIN G LABORATORY LICENSE IS VALID FOR 31 HOUSE BILL 556 53
2 YEARS ON INITIAL LIC ENSURE. 1
(2) AN INDEPENDENT TESTIN G LABORATORY LICENSE IS VALID FOR 2
2 YEARS ON RENEWAL . 3
(D) A REGISTERED INDEPENDE NT TESTING LABORATOR Y IS AUTHORIZED 4
TO TEST AND TRANSPOR T CANNABIS AND CANNA BIS PRODUCTS ON BEHA LF OF 5
CANNABIS LICENSEES . 6
(E) (1) A LABORATORY AGENT OR AN EMPLOYEE OF AN INDEP ENDENT 7
TESTING LABORATORY MAY NOT RECEIVE DIRECT OR IN DIRECT FINANCIAL 8
COMPENSATION , OTHER THAN REASONABL E CONTRACTUAL FEES T O CONDUCT 9
TESTING, FROM ANY ENTITY FOR WHICH IT IS CONDUCTI NG TESTING UNDER THIS 10
TITLE. 11
(2) AN INDIVIDUAL WHO POSSESSES AN INT EREST IN OR IS A 12
LABORATORY AGENT EMP LOYED BY AN INDEPEND ENT TESTING LABORATO RY, OR 13
AN IMMEDIATE FAMILY MEM BER OF THE INDIVIDUAL , MAY NOT POSSESS AN 14
INTEREST IN OR BE EM PLOYED BY A CANNABIS LICENSEE. 15
(F) CANNABIS AND CANNABIS PRODUCT S MAY NOT BE SOLD OR OTHERWISE 16
MARKETED UNDER THIS TITLE IF THE CANNABIS OR C ANNABIS PRODUCT HAS NOT 17
BEEN TESTED BY AN IN DEPENDENT TESTING LA BORATORY AND DETERMI NED TO 18
MEET THE DIVISION’S TESTING PROTOCOLS . 19
(G) THE DIVISION SHALL ADOPT REGULATIONS THAT ESTABLISH : 20
(1) THE STANDARDS AND RE QUIREMENTS TO BE MET BY AN 21
INDEPENDENT TESTING LABORATORY TO OBTAIN A REGISTRATION ; 22
(2) THE STANDARDS OF CAR E TO BE FOLLOWED BY AN INDEPENDENT 23
TESTING LABORATORY ; AND 24
(3) THE BASIS AND PROCES SES FOR DENIAL , REVOCATION , AND 25
SUSPENSION OF A REGI STRATION OF AN INDEP ENDENT TESTING LABOR ATORY. 26
(H) THE DIVISION MAY INSPECT AN INDEPENDENT TESTI NG LABORATORY 27
REGISTERED UNDER THI S SECTION TO ENSURE COMPLIANCE WITH THIS TITLE AND 28
ANY REGULATIONS ADOP TED UNDER THIS TITLE. 29
(I) (1) ANY REGISTRATION TO O PERATE AN INDEPENDEN T TESTING 30
LABORATORY ISSUED BY THE NATALIE M. LAPRADE MEDICAL CANNABIS 31
COMMISSION ON OR BEFO RE JULY 1, 2023, SHALL BE VALID UNDER THIS TITLE AND 32 54 HOUSE BILL 556
SHALL AUTHORIZE AN INDEPEN DENT TESTING LABORAT ORY TO PERFORM TESTING 1
ON MEDICAL AND ADULT –USE CANNABIS AND CAN NABIS PRODUCTS . 2
(2) THE DIVISION SHALL CONVER T ALL INDEPENDENT TE STING 3
LABORATORY REGISTRAT IONS IN ACCORDANCE W ITH THIS SUBSECTION . 4
36–409. 5
(A) THE FOLLOWING BUSINES SES SHALL REGISTER W ITH THE DIVISION IN 6
ORDER TO PROVIDE SER VICES TO A CANNABIS LICENSEE: 7
(1) A TRANSPORTER ; 8
(2) A SECURITY GUARD AGE NCY; 9
(3) A WASTE DISPOSAL COM PANY; AND 10
(4) ANY OTHER TYPE OF CA NNABIS BUSINESS THAT IS AUTHORIZED 11
BY THE DIVISION TO PROVIDE P LANT OR PRODU CT–TOUCHING SERVICES TO 12
CANNABIS LICENSEES . 13
(B) THE DIVISION SHALL ADOPT REGULATIONS THAT EST ABLISH: 14
(1) THE STANDARDS AND RE QUIREMENTS TO BE MET BY AN ENTITY 15
TO OBTAIN A REGISTRA TION UNDER THIS SUBT ITLE; AND 16
(2) THE BASIS AND PROCES SES FOR APPROVAL, DENIAL, 17
REVOCATION , AND SUSPENSION OF TH E CANNABIS REGISTRAT ION. 18
(C) A REGISTRATION TO OPER ATE A TRANSPORTER , SECURITY GUARD 19
AGENCY, OR WASTE DISPOSAL CO MPANY ISSUED BY THE DIVISION ON OR BEFORE 20
JULY 1, 2023, SHALL BE VALID UNDER THIS TITLE AND AUTHORIZE A TRANSPOR TER, 21
SECURITY GUARD AGENC Y, OR WASTE DISPOSAL CO MPANY TO HANDLE MEDICAL 22
AND ADULT–USE CANNABIS AND CAN NABIS PRODUCTS . 23
36–410. 24
BEGINNING JULY 1, 2023, A CANNABIS LICENSEE THAT IS OPERATING A 25
DISPENSARY SHALL : 26
(1) ENSURE THAT IT H AS ADEQUATE SUPPLY F OR QUALIFYING 27
PATIENTS AND CAREGIV ERS; AND 28
HOUSE BILL 556 55
(2) SET ASIDE OPERATING HOURS TO SERVE ONLY QUALIFYING 1
PATIENTS AND CAREGIV ERS. 2
SUBTITLE 5. AGENT, OWNER, AND LICENSE TRANSFER REQUIREMENTS . 3
36–501. 4
(A) EACH CANNABIS AGENT S HALL BE REGISTERED W ITH THE DIVISION 5
BEFORE THE AGENT MAY VOLUNTEER OR WORK FO R A CANNABIS LICENSEE OR 6
CANNABIS REGISTRANT. 7
(B) A CANNABIS AGENT REGIS TRATION IS VALID FOR 2 YEARS. 8
(C) TO BE ELIGIBLE TO REG ISTER WITH THE DIVISION, A CANNABIS AGENT 9
MUST: 10
(1) BE AT LEAST 21 YEARS OLD; AND 11
(2) IF THE RECORDS ARE LEGA LLY ACCESSIBLE , OBTAIN A STATE AND 12
NATIONAL CRIMINAL HI STORY RECORDS CHECK IN ACCORDANCE WITH § 36–505 OF 13
THIS SUBTITLE. 14
(D) THE DIVISION MAY NOT REGISTER AS A CANNAB IS AGENT AN 15
INDIVIDUAL WHO: 16
(1) DOES NOT MEET THE CR ITERIA ESTABLISHED UNDER 17
SUBSECTION (C) OF THIS SECTION; OR 18
(2) HAS BEEN CONVICTED O F OR PLEADED NOLO CONTENDERE TO A 19
CRIME INVOLVING MORA L TURPITUDE, WHETHER OR NOT ANY A PPEAL OR OTHER 20
PROCEEDING IS PENDIN G TO HAVE THE CONVIC TION OR PLEA SET ASIDE. 21
(E) THE DIVISION MAY NOT DENY A CANNABIS AGENT REG ISTRATION 22
BASED ON ANY CANNABIS –RELATED OFFENSES OCC URRING BEFORE JANUARY 1, 23
2023. 24
36–502. 25
(A) AN INDIVIDUAL WISHING TO HOLD AN O WNERSHIP INTEREST OF 5% OR 26
GREATER IN, OR CONTROL OF , A CANNABIS LICENSEE SHALL SUBMIT TO THE 27
DIVISION: 28
(1) AN APPLICATION THAT INCLUDES THE NAME, ADDRESS, AND DATE 29 56 HOUSE BILL 556
OF BIRTH OF THE APPL ICANT; 1
(2) A STATEMENT SIGNED B Y THE APPLICA NT ASSERTING THAT TH E 2
APPLICANT HAS NOT PREVIOUSLY HAD A CANNABIS LICENSE OR CANNABIS 3
REGISTRATION SUSPEND ED OR REVOKED ; 4
(3) A STATE AND NATIONAL CR IMINAL HISTORY RECOR DS CHECK IN 5
ACCORDANCE WITH § 36–505 OF THIS SUBTITLE; 6
(4) ANY INFORMATION REQU IRED BY THE DIVISION TO COMPLETE AN 7
INVESTIGATION INTO T HE BACKGROUND OF THE APPLICANT, INCLUDING 8
FINANCIAL RECORDS AN D OTHER INFORMATION RELATING TO THE BUSI NESS 9
AFFAIRS OF THE APPLI CANT; AND 10
(5) AN APPLICATION FEE I N AN AMOUNT TO BE DE TERMINED BY THE 11
DIVISION IN ACCORDANC E WITH THIS SUBTITLE . 12
(B) THE DIVISION MAY DENY AN APPLICATION IF: 13
(1) THE APPLICANT : 14
(I) FAILS TO SUBMIT THE INFORMATION REQUIRED UNDER 15
SUBSECTION (A) OF THIS SECTION; OR 16
(II) HAS BEEN CONVICTED O F OR PLEADED NOLO CONTEND ERE 17
TO A CRIME INVOLVING MORAL TURPITUDE , WHETHER OR NOT ANY A PPEAL OR 18
OTHER PROCEEDING IS PENDING TO HAVE THE CONVICTION OR PLEA S ET ASIDE; OR 19
(2) THE DIVISION FINDS A SUBS TANTIAL REASON TO DE NY THE 20
REGISTRATION . 21
36–503. 22
(A) A CANNABIS LICENSE GRA NTED UNDER THIS TITL E IS NOT 23
TRANSFERABLE EXCEPT AS PROVIDED IN THIS SECTION. 24
(B) TO TRANSFER OWNERSHIP OR CONTROL OF A LICE NSE ISSUED UNDER 25
THIS TITLE, A LICENSEE: 26
(1) SHALL SUBMIT TO THE DIVISION: 27
(I) AN APPLICATION FEE I N AN AMOUNT TO BE DE TERMINED BY 28
THE DIVISION IN ACCORDANC E WITH THIS SUBTITLE ; AND 29 HOUSE BILL 556 57
(II) AN APPLICATION DEVEL OPED BY THE DIVISION; AND 1
(2) MUST MEET THE REQUIREMENT S FOR TRANSFER OF OW NERSHIP 2
OR CONTROL ESTABLISH ED BY THE DIVISION UNDER THIS TITLE. 3
(C) (1) A CANNABIS LICENSEE , INCLUDING A CANNABIS LICENSEE WH OSE 4
LICENSE WAS CONVERTED IN ACCORDANCE WITH § 36–401 OF THIS TITLE, MAY NOT 5
TRANSFER OWNERSHIP O R CONTROL OF THE LICENSE FOR A PERIOD OF AT LEAST 5 6
YEARS FOLLOWING LICE NSURE. 7
(2) THE 5–YEAR PERIOD SPECIFIE D IN PARAGRAPH (1) OF THIS 8
SUBSECTION DOES NOT INCLUDE THE TIME PER IOD THAT A BUSINESS IS 9
CONSIDERED BY THE DIVISION TO BE IN A PREAPPROVED LICENSURE STATUS. 10
(3) THE LIMITATIONS UNDER THIS SUBSECTION DO N OT APPLY TO 11
TRANSFERS AS A RESUL T OF THE DEATH OF TH E OWNER OF A CANNABI S LICENSE. 12
36–504. 13
(A) IN THIS SECTION , “OWNER” INCLUDES ANY TYPE OF OWNER OR 14
BENEFICIARY OF A BUS INESS ENTITY, INCLUDING A PRINCIPAL OFFICER, A 15
DIRECTOR, A PRINCIPAL EMPLOYEE , A PARTNER, AN INVESTOR, A STOCKHOLDER , 16
OR A BENEFICIAL OWNE R OF THE BUSINESS EN TITY AND, NOTWITHSTANDING ANY 17
OTHER PROVISION OF T HIS SUBTITLE, A PERSON HAVING ANY OWNERSHIP 18
INTEREST REGARDLESS OF THE PERCENTAGE OF OWNERSHIP INTERES T. 19
(B) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , A 20
CONSTITUTIONAL OFFIC ER OR A SECRETARY OF A PRINCIPAL DEPARTME NT OF THE 21
EXECUTIVE BRANCH OF THE STATE GOVERNMENT MAY NOT: 22
(1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT 23
HOLDS A LICENSE OR REGISTRATION UNDER THIS TITLE ; OR 24
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUSINESS ENTITY TH AT 25
HOLDS A LICENSE OR REGISTRATION UNDER THIS TITLE . 26
(C) A CONSTITUTIONAL OFFIC ER OR A SECRETARY OF A PRINCIPAL 27
DEPARTMENT OF THE EXECUTIVE BRANCH OF THE STATE GOVERNMENT MAY 28
REMAIN AN OWNER OR A N EMPLOYEE OF A BUSI NESS ENTITY THAT HOL DS A LICENSE 29
UNDER THIS TITLE IF THE CONSTITUTIONAL O FFICER OR SECRETARY WAS AN 30
OWNER OR EMPLOYEE OF THE BUSINESS ENTITY BEFORE THE CONSTITUT IONAL 31
OFFICER’S ELECTION OR APPOIN TMENT OR THE SECRETA RY’S APPOINTMENT . 32 58 HOUSE BILL 556
(D) A MEMBER OF THE GENERAL ASSEMBLY MAY NOT : 1
(1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT 2
HOLDS A LICENSE OR REGISTRAT ION UNDER THIS TITLE ; OR 3
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT 4
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE. 5
(E) A FORMER MEMBER OF THE GENERAL ASSEMBLY, FOR THE 1–YEAR 6
PERIOD IMMEDIATELY A FTER THE MEMBE R LEAVES OFFICE , MAY NOT: 7
(1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT 8
HOLDS A LICENSE OR REGISTRATION UNDER THIS TITLE ; OR 9
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT 10
HOLDS A LICENSE OR REGISTRATION UNDER THIS TITLE . 11
(F) AN EMPLOYEE OF THE DIVISION MAY NOT: 12
(1) HAVE A DIRECT OR IND IRECT FINANCIAL , OWNERSHIP, OR 13
MANAGEMENT INTEREST , INCLUDING OWNERSHIP OF ANY STOCKS , BONDS, OR 14
OTHER SIMILAR FINANC IAL INSTRUMENTS , IN ANY CANNABIS LICE NSEE; 15
(2) HAVE AN OFFICIAL RE LATIONSHIP WITH A PERSON WHO HOLDS A 16
LICENSE OR REGISTRATION UNDER THIS TITLE ; 17
(3) BE AN ELECTED OFFICI AL OF STATE OR LOCAL GOVERN MENT; 18
(4) RECEIVE OR SHARE IN , DIRECTLY OR INDIRECT LY, THE RECEIPTS 19
OR PROCEEDS OF A CAN NABIS LICENSEE; OR 20
(5) HAVE A BENEFICIAL INTER EST IN A CONTRACT FO R THE 21
MANUFACTURE OR SALE OF CANNABIS OR THE P ROVISION OF INDEPENDENT 22
CONSULTING SERVICES IN CONNECTION WITH A CANNABIS LICENSE . 23
36–505. 24
(A) IN THIS SECTION , “CENTRAL REPOSITORY” MEANS THE CRIMINAL 25
JUSTICE INFORMATION SYSTEM CENTRAL REPOSITORY IN THE DEPARTMENT OF 26
PUBLIC SAFETY AND CORRECTIONAL SERVICES. 27
(B) AS PART OF AN APPLICA TION TO THE CENTRAL REPOSITORY FOR A 28 HOUSE BILL 556 59
STATE AND NATIONAL CR IMINAL HISTORY RECOR DS CHECK, AN APPLICANT SHALL 1
SUBMIT TO THE CENTRAL REPOSITORY: 2
(1) TWO COMPLETE SETS OF LEGIBLE FINGERPRINTS TAKEN ON 3
FORMS APPROVED BY TH E DIRECTOR OF T HE CENTRAL REPOSITORY AND THE 4
DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION ; 5
(2) THE FEE AUTHORIZED U NDER § 10–221(B)(7) OF THE CRIMINAL 6
PROCEDURE ARTICLE FOR ACCESS TO STATE CRIMINAL HISTOR Y RECORDS; AND 7
(3) THE PROCESSING FEE R EQUIRED BY THE FEDERAL BUREAU OF 8
INVESTIGATION FOR A N ATIONAL CRIMINAL HIS TORY RECORDS CHECK . 9
(C) IN ACCORDANCE WITH §§ 10–201 THROUGH 10–228 OF THE CRIMINAL 10
PROCEDURE ARTICLE, THE CENTRAL REPOSITORY SHALL FORW ARD TO THE 11
DIVISION AND TO THE A PPLICANT THE APPLICANT’S CRIMINAL HISTORY RECORD 12
INFORMATION . 13
(D) IF AN APPLICANT HAS M ADE TWO OR MORE UNSU CCESSFUL ATTEMPTS 14
AT SECURING LEGIBLE FINGERPRINTS , THE DIVISION MAY ACCEPT A N ALTERNATE 15
METHOD OF A CRIMINAL HISTORY RECORDS CHEC K AS PERMITTED BY TH E 16
DIRECTOR OF THE CENTRAL REPOSITORY AND THE DIRECTOR OF THE FEDERAL 17
BUREAU OF INVESTIGATION . 18
(E) INFORMATION OBTAINED FROM THE CENTRAL REPOSITORY UNDER 19
THIS SECTION SHALL B E: 20
(1) CONFIDENTIAL AND MAY NOT BE REDISSEMINATE D; AND 21
(2) USED ONLY FOR THE PURPOSE OF REGISTRATION UNDER THIS 22
TITLE. 23
(F) THE SUBJECT OF A CRIM INAL HISTORY RECORDS CHECK UNDER THIS 24
SECTION MAY CONTEST THE CRIMINAL HISTORY REC ORD INFORMATION 25
DISSEMINATED BY THE CENTRAL REPOSITORY, AS PROVIDED IN § 10–223 OF THE 26
CRIMINAL PROCEDURE ARTICLE. 27
SUBTITLE 6. MEDICAL CANNABIS COMPASSIONATE USE FUND AND PROGRAM. 28
36–601. 29
(A) THERE IS A MEDICAL CANNABIS COMPASSIONATE USE FUND. 30
60 HOUSE BILL 556
(B) (1) THE DIVISION SHALL: 1
(I) ADMINISTER THE COMPASSIONATE USE FUND; AND 2
(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 3
ESTABLISH FEES IN AN AMOUNT NE CESSARY TO PROVIDE R EVENUES FOR THE 4
PURPOSES OF THE COMPASSIONATE USE FUND. 5
(2) THE DIVISION MAY NOT IMPO SE THE FEES ESTABLIS HED UNDER 6
PARAGRAPH (1)(II) OF THIS SUBSECTION O N A LICENSED MEDICAL CANN ABIS 7
GROWER, PROCESSOR, OR DISPENSARY DURING THE 2–YEAR PERIOD IMMEDIATELY 8
FOLLOWING THE ISSUAN CE OF A LICENSE UNDE R THIS TITLE. 9
(C) THE PURPOSE OF THE COMPASSIONATE USE FUND IS TO PROVIDE 10
ACCESS TO CANNABIS F OR INDIVIDUALS ENROL LED IN THE MARYLAND MEDICAL 11
ASSISTANCE PROGRAM OR IN THE VETERANS AFFAIRS MARYLAND HEALTH CARE 12
SYSTEM, INCLUDING ACCESS TO , AT A REDUCED COST : 13
(1) AN ASSESSMENT OF THE PATIENT’S MEDICAL HISTORY AN D 14
CURRENT MEDICAL CON DITION; AND 15
(2) MEDICAL CANNABIS FRO M A LICENSED DISPENSAR Y. 16
(D) (1) THE COMPASSIONATE USE FUND IS A SPECIAL , NONLAPSING 17
FUND THAT IS NOT SUB JECT TO § 7–302 OF THE STATE FINANCE AND 18
PROCUREMENT ARTICLE. 19
(2) THE STATE TREASURER SHALL HOLD THE COMPASSIONATE USE 20
FUND SEPARATELY , AND THE COMPTROLLER SHALL ACCOUN T FOR THE 21
COMPASSIONATE USE FUND. 22
(3) THE COMPASSIONATE USE FUND SHALL BE INVESTE D AND 23
REINVESTED IN THE SA ME MANNER AS OTHER STATE FUNDS, AND ANY INVESTMENT 24
EARNINGS SHALL BE RE TAINED TO THE CREDIT OF THE COMPASSIONATE USE 25
FUND. 26
(4) THE COMPASSIONATE USE FUND SHALL BE SUBJECT TO AN 27
AUDIT BY THE OFFICE OF LEGISLATIVE AUDITS AS PROVIDED FO R IN § 2–1220 OF 28
THE STATE GOVERNMENT ARTICLE. 29
(5) THE COMPTROLLER SHALL PAY OUT MONEY FROM THE 30
COMPASSIONATE USE FUND AS DIRECTED BY T HE DIVISION. 31
HOUSE BILL 556 61
(E) NO PART OF THE COMPASSIONATE USE FUND MAY REVERT OR BE 1
CREDITED TO: 2
(1) THE GENERAL FUND OF THE STATE; OR 3
(2) ANY OTHER SPECIAL FU ND OF THE STATE. 4
(F) EXPENDITURES FROM THE COMPASSIONATE USE FUND MAY BE MADE 5
ONLY IN ACCORDANCE W ITH THE STATE BUDGET . 6
(G) THE DIVISION SHALL ADOPT REGULATIONS TO CARRY OUT THIS 7
SECTION. 8
SUBTITLE 7. CANNABIS RESEARCH AND DEVELOPMENT . 9
36–701. 10
(A) (1) AN INSTITUTION OF HIG HER EDUCATION , A RELATED MEDICAL 11
FACILITY, OR AN AFFILIATED BIO MEDICAL RESEARCH FIR M MAY REGISTER WITH 12
THE DIVISION TO PURCHASE CANNABIS FOR THE PUR POSE OF CONDUCTING A BONA 13
FIDE RESEARCH PROJEC T RELATING TO THE US ES, PROPERTIES, OR COMPOSITION 14
OF CANNABIS. 15
(2) A REGISTRATION FILED U NDER PARAGRAPH (1) OF THIS 16
SUBSECTION SHALL INC LUDE: 17
(I) THE NAME OF THE PRIM ARY RESEARCHER ; 18
(II) THE EXPECTED DURATIO N OF THE RESEARCH PROJECT; 19
AND 20
(III) THE PRIMARY OBJECTIV ES OF THE RESEARCH PROJECT. 21
(3) A REGISTRATION FILED U NDER PARAGRAPH (1) OF THIS 22
SUBSECTION SHALL REM AIN VALID UNTIL THERE IS A CHANGE IN THE RESEARCH 23
PROJECT OR A WITHDRA WAL OF THE REGISTRAT ION. 24
(B) AN ACADEMIC RESEARCH REPRESENTATIVE MAY P URCHASE CANNABIS 25
FROM A LICENSED DISP ENSARY. 26
(C) AN ACADEMIC RESEARCH REPRESENTATIVE MAY N OT BE PENALIZED OR 27
ARRESTED UNDER STATE LAW FOR ACQUIRI NG, POSSESSING, OR DISPENSING 28
CANNABIS, PRODUCTS CONTAINING CANNABIS, RELATED SUPPLIES , OR 29 62 HOUSE BILL 556
EDUCATIONAL MATERIAL S FOR USE IN A BONA FIDE RESEARCH PROJEC T RELATING 1
TO THE USES, PROPERTIES, OR COMPOSITION OF CA NNABIS. 2
(D) THE DIVISION MAY ADOPT REGULATIONS TO IMPLEMENT THIS 3
SECTION. 4
36–702. 5
(A) THE DIVISION MAY REGISTER AN ENTITY TO GROW , PROCESS, TEST, 6
AND TRANSFER CANNABI S FOR THE PURPOSES O F RESEARCH AND DEVEL OPMENT 7
AS PROVIDED IN SUBSE CTION (B) OF THIS SECTION. 8
(B) A REGISTRAT ION ISSUED UNDER SUB SECTION (A) OF THIS SECTION 9
AUTHORIZES THE REGISTRA NT ONLY TO: 10
(1) TEST CHEMICAL POTENC Y AND COMPOSITION LE VELS; 11
(2) CONDUCT CLINICAL INV ESTIGATIONS OF CANNA BIS–DERIVED 12
MEDICINAL PRODUCTS ; 13
(3) CONDUCT RESEARCH ON THE EFFICACY A ND SAFETY OF 14
ADMINISTERING CANNAB IS AS PART OF MEDICA L TREATMENT ; 15
(4) CONDUCT GENOMIC , HORTICULTURAL , OR AGRICULTURAL 16
RESEARCH; AND 17
(5) CONDUCT RESEARCH ON CANNABIS–AFFILIATED PRODUCTS OR 18
SYSTEMS. 19
(C) TO OBTAIN A RESEARCH AND DEVELOPMENT REGISTRATION , AN 20
APPLICANT SHALL SUBM IT TO THE DIVISION: 21
(1) AN APPLICATION FEE I N AN AMOUNT TO BE DE TERMINED BY THE 22
DIVISION; AND 23
(2) AN APPLICATION DEVEL OPED BY THE DIVISION. 24
(D) AN APPLICANT FOR A RE SEARCH AND DEVELOPME NT REGISTRATION 25
MUST MEET THE REGISTRATION STANDARDS AND REQUIR EMENTS ESTABLISHED BY 26
THE DIVISION. 27
(E) (1) A RESEARCH AND DEVELOP MENT REGISTRATION IS VALID FOR AN 28
INITIAL TERM OF 2 YEARS. 29 HOUSE BILL 556 63
(2) A RESEARCH AND DEVELOP MENT REGISTRATION IS VALID FOR 2 1
YEARS ON RENEWAL . 2
(F) A RESEARCH AND DEVELOP MENT REGISTRA NT MAY TRANSFER , BY SALE 3
OR DONATION , CANNABIS GROWN WITHI N ITS OPERATION ONLY TO OTHER 4
RESEARCH AND DEVELOP MENT REGISTRANTS . 5
(G) A RESEARCH AND DEVELOP MENT REGISTRANT MAY CONTRACT TO 6
PERFORM RESEARCH IN CONJUNCTION WI TH A PUBLIC HIGHER E DUCATION 7
RESEARCH INSTITUTION OR ANOTHER RESEARCH AND DEVELOPMENT REGI STRANT. 8
SUBTITLE 8. REPORTS. 9
36–801. 10
(A) ON OR BEFORE JUNE 30 EACH YEAR, EACH ENTITY LICENSED OR 11
REGISTERED UNDER THI S TITLE SHALL REPORT TO THE DIVISION ON: 12
(1) THE NUMBER OF MINORI TY AND WOMEN OWNERS OF THE 13
CANNABIS LICENSEE OR CANNABIS REGISTRANT; 14
(2) THE OWNERSHIP INTERE ST OF ANY MINORITY A ND WOMEN 15
OWNERS OF THE CANNABIS LICENSEE OR CANNABIS REGISTRANT; AND 16
(3) THE NUMBER OF MINORI TY AND WOMEN EMPLOYE ES OF THE 17
CANNABIS LICENSEE OR CANNABIS REGISTRANT. 18
(B) ON OR BEFORE JANUARY 1 EACH YEAR, THE DIVISION SHALL REPORT 19
TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE 20
GOVERNMENT ARTICLE, ON THE INFORMATION REPORTED UNDER SUBSECTION (A) 21
OF THIS SECTION. 22
36–802. 23
ON OR BEFORE JANUARY 1 EACH ODD–NUMBERED YEAR , THE DIVISION 24
SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF 25
THE STATE GOVERNMENT ARTICLE, ON: 26
(1) THE AMOUNT OF CANNAB IS CULTIVATED , PROCESSED, AND 27
DISPENSED BY STANDARD AND MICRO LICENSEES ; AND 28
(2) WHETHER THE SUPPLY O F CANNABIS IS ADEQUA TE TO MEET THE 29 64 HOUSE BILL 556
DEMAND FOR CANNABIS AND CANNABIS PRODUCT S. 1
36–803. 2
THE DIVISION SHALL PUBLIS H THE FOLLOWING DATA, ORGANIZED BY 3
MONTH, ON A ROLLING BASIS A ND ON A PUBLICLY ACCESSIBLE PART OF T HE 4
COMMISSION’S WEBSITE: 5
(1) THE NUMBER OF PATIEN TS, CAREGIVERS, AND PROVIDERS 6
CERTIFIED UNDER THIS TITLE; 7
(2) THE WHOLESALE AND RE TAIL SALES OF MEDICA L AND ADULT–USE 8
CANNABIS, MEASURED BY REVENUE AND VOLUME ; AND 9
(3) THE MEDIAN CONSUMER PRICE FOR CANNABIS A ND CANNABIS 10
PRODUCTS. 11
SUBTITLE 9. ADVERTISING. 12
36–901. 13
(A) ADVERTISEMENTS FOR ME DICAL CANNABIS AND M EDICAL CANNABIS 14
PRODUCTS OR MEDICAL CANNABIS–RELATED SE RVICES THAT MAKE THE RAPEUTIC 15
OR MEDICAL CLAIMS SH ALL: 16
(1) BE SUPPORTED BY SUBS TANTIAL CLINICAL EVI DENCE OR 17
SUBSTANTIAL CLINICAL DATA; AND 18
(2) INCLUDE INFORMATION ON THE MOST SIGNIFIC ANT SIDE 19
EFFECTS OR RISKS ASS OCIATED WITH THE USE OF CANNABIS. 20
(B) ADVERTISEMENTS FOR MEDICAL CANNABIS OR MEDICAL CANNABIS 21
PRODUCTS SHALL INCLU DE A STATEMENT THAT THE PRODUCT IS FOR U SE ONLY BY 22
A QUALIFYING PATIENT . 23
36–902. 24
(A) AN ADVERTISEMENT FOR A CANNABIS LICENSEE , CANNABIS PRODUCT , 25
OR CANNABIS–RELATED SERVICE MAY NOT: 26
(1) MAKE A STATEMENT THA T IS FALSE OR MISLEA DING IN A 27
MATERIAL WAY OR IS O THERWISE A VIOLATION OF TITLE 13, SUBTITLE 3 OF THE 28
COMMERCIAL LAW ARTICLE; 29 HOUSE BILL 556 65
(2) CONTAIN A DESIGN , AN ILLUSTRATION , A PICTURE, OR A 1
REPRESENTATION THAT : 2
(I) TARGETS OR IS ATTRAC TIVE TO MINORS , INCLUDING A 3
CARTOON CHARACTER , A MASCOT, OR ANY OTHER DEPICTI ON THAT IS COMMONLY 4
USED TO MARKET PRODU CTS TO MINORS; 5
(II) DISPLAYS THE USE OF CANNABIS, INCLUDING THE 6
CONSUMPTION , SMOKING, OR VAPING OF CANNABI S; 7
(III) ENCOURAGES OR PROMOT ES CANNABIS FOR USE AS AN 8
INTOXICANT; OR 9
(IV) IS OBSCENE; 10
(3) ENGAGE IN ADVERTISIN G BY MEANS OF TELEVISION, RADIO, 11
INTERNET, MOBILE APPLICATION , SOCIAL MEDIA , OR OTHER ELECTRONIC 12
COMMUNICATION , OR PRINT PUBLICATION , UNLESS AT LEAST 85% OF THE 13
AUDIENCE IS REASONAB LY EXPECTED TO BE AT LEAST 21 YEARS OLD AS 14
DETERMINED BY RELIAB LE AND CURRENT AUDIE NCE COMPOSITION DATA ; OR 15
(4) ENGAGE IN ADVERTISIN G BY MEANS OF PLACIN G AN 16
ADVERTISEMENT ON THE SIDE OF A BUILDING O R ANOTHER PUBLICLY VISIBLE 17
LOCATION OF ANY FORM , INCLUDING A SIGN , A POSTER, A PLACARD, A DEVICE, A 18
GRAPHIC DISPLAY , AN OUTDOOR BILLBOARD, OR A FREESTANDING SI GNBOARD. 19
(B) (1) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 20
EACH WEBSITE OWNED , MANAGED, OR OPERATED BY A CANNABIS L ICENSEE SHALL 21
EMPLOY A NEUTRAL AGE –SCREENING MECHANISM THAT VERIFIES THAT T HE USER 22
IS AT LEAST 21 YEARS OLD, INCLUDING BY USING A N AGE–GATE, AGE–SCREEN, OR 23
AGE VERIFICATION MEC HANISM. 24
(II) IF A WEBSITE IS APPRO PRIATE FOR A QUALIFY ING PATIENT 25
WHO IS UNDER THE AGE OF 21 YEARS, THE WEBSITE SHALL PR OVIDE AN 26
ALTERNATIVE SCREENIN G MECHANISM FOR THE QUALIFYING PATIENT . 27
(2) AN ADVERTISEMENT PLAC ED ON SOCIAL MEDIA O R A MOBILE 28
APPLICATION SHALL IN CLUDE A NOTIFICATION THAT AN INDIVIDUAL MUST BE AT 29
LEAST 21 YEARS OLD TO VIEW TH E CONTENT. 30
(C) THE DIVISION SHALL ADOPT REGULATIONS TO ESTAB LISH: 31
66 HOUSE BILL 556
(1) PROCEDURES FOR THE E NFORCEMENT OF THIS S ECTION; AND 1
(2) A PROCESS FOR AN IND IVIDUAL TO VOLUNTARI LY SUBMIT AN 2
ADVERTISEMENT TO THE DIVISION FOR AN ADVISORY OPINION ON WHETHER T HE 3
ADVERTISEMENT COMPLI ES WITH THE RESTRICT IONS ON ADVERTISEMEN TS FOR 4
CANNABIS, CANNABIS PRODUCTS , EDIBLE CANNABIS PROD UCTS, AND 5
CANNABIS–RELATED SERVICES . 6
SUBTITLE 10. RESPONSIBLE VENDOR TRAINING PROGRAM. 7
36–1001. 8
(A) IF A PERSON WOULD LIKE TO OFFER A RESPONSIB LE MEDICAL OR 9
ADULT–USE CANNABIS VENDOR , SERVER, AND SELLER TRAINING PROGRAM, THE 10
PERSON MUST SUBMIT AN APPLI CATION TO THE DIVISION. 11
(B) THE DIVISION SHALL APPROV E THE APPLICATION IF THE PROPOSED 12
TRAINING PROGRAM MEETS THE MINIMUM EDUCATIO NAL STANDARDS 13
ESTABLISHED UNDER SU BSECTION (C) OF THIS SECTION. 14
(C) AT A MINIMUM, A TRAINING PROGRAM MUST: 15
(1) BE TAUGHT IN A CLASS ROOM OR VIRTUAL SETT ING FOR AT LEAST 16
A 2–HOUR PERIOD ; 17
(2) ESTABLISH PROGRAM STANDARDS, INCLUDING CERTIFICAT ION 18
AND RECERTIFICATION REQUIREMENTS , RECORD KEEPING , TESTING AND 19
ASSESSMENT PROTOCOLS , AND EFFECTIVENESS EV ALUATIONS; AND 20
(3) PROVIDE A CORE CURRICULUM OF RELEVANT STATUTORY AND 21
REGULATORY PROVISION S, WHICH SHALL INCLUDE : 22
(I) INFORMATION ON REQUI RED LICENSES , AGE 23
REQUIREMENTS , PATIENT REGISTRY CAR DS ISSUED BY THE DIVISION, 24
MAINTENANCE OF RECOR DS, PRIVACY ISSUES, AND UNLAWFUL ACTS ; 25
(II) ADMINISTRATIVE AND C RIMINAL LIABILITY AN D LICENSE 26
AND COURT SANCTIONS ; 27
(III) STATUTORY AND REGULA TORY REQUIREMENTS FO R 28
EMPLOYEES AND OWNERS ; 29
(IV) STATUTORY AND REGULA TORY REQUIREMENTS RE LATED 30 HOUSE BILL 556 67
TO CANNABIS SALE , TRANSFER, AND DELIVERY ; 1
(V) ACCEPTABLE FORMS OF IDENTIFICATION , INCLUDING 2
PATIENT AND CAREGIVE R IDENTIFICATIO N CARDS; 3
(VI) STATE AND LOCAL LICEN SING AND ENFORCEMENT ; AND 4
(VII) INFORMATION ON SERVI NG SIZE, THC AND CANNABINOID 5
POTENCY, AND IMPAIRMENT . 6
36–1002. 7
THE DIVISION SHALL ADOPT REGULATIONS ESTABLIS HING THE 8
RESPONSIBLE VENDOR T RAINING PROGRAM AN D THE MINIMUM STANDA RDS FOR 9
THE PROGRAM . 10
36–1003. 11
A PROVIDER OF AN APPRO VED TRAINING PROGRAM SHALL: 12
(1) MAINTAIN ITS TRAININ G RECORDS AT ITS PRI NCIPAL PLACE OF 13
BUSINESS FOR AT LEAST 4 YEARS; AND 14
(2) MAKE THE RECORDS AVA ILABLE FOR INSPECTIO N BY THE 15
DIVISION. 16
SUBTITLE 11. PROHIBITED ACTS. 17
36–1101. 18
(A) A CANNABIS LICENSEE MAY NOT SELL, TRANSFER, OR DELIVER 19
CANNABIS OR CANNABIS PRODUCTS UNLESS THE LICENSEE VERIFIES BY MEANS OF 20
A VALID DRIVER ’S LICENSE OR OTHER G OVERNMENT –ISSUED PHOTO 21
IDENTIFICATION CONTA INING THE BEARER ’S DATE OF BIRTH THAT : 22
(1) FOR ADULT–USE CANNABIS , THE CONSU MER IS AT LEAST 21 23
YEARS OLD; OR 24
(2) FOR MEDICAL CANNABIS , THE PATIENT OR CAREG IVER IS: 25
(I) REGISTERED WITH THE DIVISION; AND 26
(II) AT LEAST 18 YEARS OLD. 27 68 HOUSE BILL 556
(B) (1) A LICENSEE THAT SELLS , TRANSFERS, OR DELIVERS CANNABIS OR 1
CANNABIS PRODUCTS IN VIOLATION OF SUBSECT ION (A) OF THIS SECTION IS 2
SUBJECT TO A CIVIL P ENALTY OF: 3
(I) $500 FOR A FIRST VIOLATIO N; 4
(II) $1,000 FOR A SECOND VIOLATI ON OCCURRING WITHIN 24 5
MONTHS AFTER THE FIR ST VIOLATION; AND 6
(III) $5,000 FOR EACH SUBSEQUENT VIOLATION OCCURRING 7
WITHIN 24 MONTHS AFTER THE IMMEDIATELY PRECEDING VIOLATION . 8
(2) THE DIVISION MAY DENY A C ANNABIS LICENSE TO A N APPLICANT, 9
REPRIMAND A CANNABIS LICENSEE, OR SUSPEND OR REVOKE A CANNABIS LICENSE 10
IF THE APPLICANT OR LICENSEE VIOLATES SUBSECTION (A) OF THIS SECTION TWO 11
OR MORE TIMES IN A 24–MONTH PERIOD . 12
(3) IN A HEARING FOR A N ALLEGED VIOLATION OF THIS SE CTION, IT 13
IS A DEFENSE THAT AN AGENT OF THE DEFENDA NT EXAMINED THE CONS UMER’S, 14
PATIENT’S, OR CAREGIVER ’S DRIVER’S LICENSE OR OTHER VALID IDENTIFICATION 15
ISSUED BY A GOVERNME NTAL UNIT THAT POSITIVELY IDENTIFIED THE CONSU MER, 16
PATIENT, OR CAREGIVER AS MEETING THE MINIMUM AGE SPECIFIED IN SUB SECTION 17
(A) OF THIS SECTION. 18
(C) (1) A CANNABIS LICENSEE MAY NOT : 19
(I) SELL, TRANSFER, OR DELIVER CANNABIS TO AN INDIVIDUAL 20
WHO IS VISIBLY INTOX ICATED; OR 21
(II) OFFER CANNABIS OR CA NNABIS PRODUCTS AS A PRIZE, 22
PREMIUM, OR CONSIDERATION FOR A LOTTERY, CONTEST, GAME OF CHANCE , GAME 23
OF SKILL, OR COMPETITION OF AN Y KIND. 24
(2) A CANNABIS LICENSEE THAT VIOLATES PARAGRAPH (1) OF THIS 25
SUBSECTION IS SUBJEC T TO A FINE NOT EXCE EDING $1,000, SUSPENSION OR 26
REVOCATION OF A LICE NSE, OR BOTH. 27
36–1102. 28
(A) THIS TITLE MAY NOT BE CONSTRUED TO AUTHORIZE AN INDI VIDUAL TO: 29
(1) OPERATE, NAVIGATE, OR BE IN ACTUAL PHYS ICAL CONTROL OF A 30 HOUSE BILL 556 69
MOTOR VEHICLE , AIRCRAFT, OR BOAT WHILE UNDER THE INFLUENCE OF CAN NABIS; 1
(2) USE CANNABIS IN A PUBLIC PLACE; 2
(3) USE CANNABIS IN A MOTOR VEHICLE; 3
(4) EXCEPT AS PROVIDED I N SUBSECTION (B) OF THIS SECTION , 4
SMOKE CANNABIS ON A PRIVAT E PROPERTY THAT : 5
(I) 1. IS RENTED FROM A LAN DLORD; AND 6
2. IS SUBJECT TO A POLI CY THAT PROHIBITS TH E 7
SMOKING OF CANNABIS ON THE PROPERTY ; OR 8
(II) IS SUBJECT TO A POLI CY THAT PROHIBITS TH E SMOKING OF 9
CANNABIS ON THE PROPERTY OF AN ATTAC HED DWELLING ADOPTED BY ONE OF THE 10
FOLLOWING ENTITIES : 11
1. THE BOARD OF DIRECTO RS OF THE COUNCIL OF UNIT 12
OWNERS OF A CONDOMIN IUM REGIME; OR 13
2. THE GOVERNING BODY O F A HOMEOWNERS 14
ASSOCIATION; OR 15
(5) POSSESS CANNABIS , INCLUDING CANNABIS P RODUCTS, IN A 16
LOCAL DETENTION FACI LITY, COUNTY JAIL, STATE PRISON, REFORMATORY , OR 17
OTHER CORRECTIONAL F ACILITY, INCLUDING A FACILITY FOR THE DETENTION OF 18
JUVENILE OFFENDERS . 19
(B) THE PROVISIONS OF SUB SECTION (A)(4) OF THIS SECTION DO NOT 20
APPLY TO VAPORIZING CANNABIS. 21
36–1103. 22
(A) (1) A PERSON MAY NOT SELL OR DISTRIBUTE A PROD UCT INTENDED 23
FOR HUMAN CONSUMPTIO N OR INHALATION THAT CONTAINS MORE THAN 0.5 24
MILLIGRAMS OF TETRAH YDROCANNABINOL PER S ERVING OR 2.5 MILLIGRAMS OF 25
TETRAHYDROCANNABINOL PER PACKAGE UNLESS T HE PERSON IS LICENSE D UNDER 26
§ 36–401 OF THIS TITLE AND TH E PRODUCT COMPLIES W ITH THE: 27
(I) MANUFACTURING STANDA RDS ESTABLISHED UNDE R § 28
36–203 OF THIS TITLE; 29
70 HOUSE BILL 556
(II) LABORATORY TESTING S TANDARDS ESTABLISHED UNDER § 1
36–203 OF THIS TITLE; AND 2
(III) PACKAGING AND LABELI NG STANDARDS ESTABLI SHED 3
UNDER § 36–203 OF THIS TITLE. 4
(2) A PERSON MAY NOT SELL OR DISTRIBUTE A PROD UCT DESCRIBED 5
UNDER PARAGRAPH (1) OF THIS SUBSECTION T O AN INDIVIDUAL UNDE R THE AGE OF 6
21 YEARS. 7
(B) A PERSON MAY NOT SELL OR DISTRIBUTE A CANN ABINOID PRODUCT 8
THAT IS NOT DERIVED FROM NATURALLY OCCUR RING BIOLOGICALLY AC TIVE 9
CHEMICAL CONSTITUENT S. 10
(C) A PERSON WHO VIOLATES SUBSECTION (A) OF THIS SECTION IS G UILTY 11
OF A MISDEMEANOR AND ON C ONVICTION IS SUBJECT TO A FINE NOT EXCEED ING 12
$5,000. 13
(D) A PERSON WHO VIOLATES SUBSECTION (B) OF THIS SECTION IS G UILTY 14
OF A MISDEMEANOR AND ON CONVICTION IS SUB JECT TO A FINE NOT E XCEEDING 15
$10,000. 16
SUBTITLE 12. LEGAL PROTECTIONS. 17
36–1201. 18
THE FOLLOWING PERSONS AC TING IN ACCORDANCE W ITH THE PROVISIONS 19
OF THIS TITLE MAY NO T BE SUBJECT TO ARRE ST, PROSECUTION , REVOCATION OF 20
MANDATORY SUPERVISIO N, PAROLE, OR PROBATION , OR ANY CIVIL OR 21
ADMINISTRATIVE PENAL TY, INCLUDING A CIVIL PE NALTY OR DISCIPLINAR Y ACTION 22
BY A PROFESSIONAL LI CENSING BOARD , OR BE DENIED ANY RIG HT OR PRIVILEGE , 23
FOR THE USE OF OR PO SSESSION OF CANNABIS : 24
(1) A QUALIFYING PATIENT ; 25
(2) A CANNABIS LICENSEE OR CANNABIS REGISTRANT THAT IS 26
LICENSED OR REGISTER ED UNDER THIS TITLE; 27
(3) A CERTIFYING PROVIDE R; 28
(4) A CAREGIVER; 29
(5) AN ACADEMIC RESEARCH REPRESENTATIVE PURCH ASING 30 HOUSE BILL 556 71
MEDICAL CANNABIS UND ER § 36–701 OF THIS TITLE; 1
(6) A HOSPITAL, MEDICAL FACILITY , OR HOSPICE PROGRAM W HERE A 2
QUALIFYING PATIENT I S RECEIVING TREATMEN T; OR 3
(7) DESIGNATED SCHOOL PE RSONNEL AUTHORIZED T O ADMINISTER 4
MEDICAL CANNABIS TO A STUDENT IN ACCORDA NCE WITH THE GUIDELI NES 5
ESTABLISHED UNDER § 7–446 OF THE EDUCATION ARTICLE UNLESS THE AC T OR 6
OMISSION CONSTITUTES GROSS NEGLIGENCE OR WANTON OR WILLFU L 7
MISCONDUCT . 8
SUBTITLE 13. CIVIL IMMUNITIES AND LIABILITIES. 9
36–1301. 10
(A) EXCEPT AS PROVIDED IN THIS SECTION, NEITHER THE STATE NOR ANY 11
OF ITS POLITICAL SUB DIVISIONS MAY DENY A BENEFIT, AN ENTITLEMENT , A 12
DRIVER’S LICENSE, A PROFESSIONAL LICEN SE, HOUSING ASSISTANCE , SOCIAL 13
SERVICES, OR OTHER BENEFITS BA SED ON LAWFUL CANNAB IS USE OR FOR THE 14
PRESENCE OF CANNABIN OIDS OR CANNABINOID METABOLITES IN THE U RINE, 15
BLOOD, SALIVA, BREATH, HAIR, OR OTHER TISSUE OR F LUID OF AN INDIVIDUA L WHO 16
IS AT LEAST 21 YEARS OLD OR A QUALIFYING PATIE NT WHO IS UNDER THE AGE OF 17
21 YEARS. 18
(B) AN INDIVIDUAL MAY NOT BE DENIED CUSTODY OF OR VISITATION WITH 19
A MINOR FOR ACTING I N ACCORDANCE WITH TH IS TITLE, UNLESS THE INDIVIDUA L’S 20
BEHAVIOR CREATES AN UNREASONABLE DANGER TO THE MINOR THAT CAN BE 21
CLEARLY ARTICULATED AND SUBSTANTIATED . 22
(C) EXCEPT AS PROVIDED IN THIS SECTION, NEITHER THE STATE NOR ANY 23
OF ITS POLITICAL SUB DIVISIONS MAY DENY E MPLOYMENT OR A CONTR ACT TO AN 24
INDIVIDUAL FOR A PRIOR CONVICTION FOR A NONVIOLENT CANNABI S OFFENSE 25
THAT DOES NOT INVOLV E DISTRIBUTION TO MI NORS. 26
(D) FOR THE PURPOSES OF M EDICAL CARE, INCLUDING ORGAN AND TISSUE 27
TRANSPLANTS : 28
(1) THE USE OF CANNABIS DOES NOT CONSTITUTE THE USE OF AN 29
ILLICIT SUBSTANCE OR OTHERWISE DISQUALIFY AN INDIVIDUAL FROM N EEDED 30
MEDICAL CARE ; AND 31
(2) MAY BE CONSIDERED ON LY WITH RESPECT TO E VIDENCE–BASED 32
CLINICAL CRITERIA . 33 72 HOUSE BILL 556
(E) (1) THIS SECTION DOES NOT PREVENT A GOVERNMENT E MPLOYER 1
FROM DISCIPLINING AN EMPLOYEE OR A CONTRACTOR FOR : 2
(I) INGESTING CANNABIS I N THE WORKPLACE ; OR 3
(II) WORKING WHILE IMPAIR ED BY CANNABIS . 4
(2) THE PROTECTIONS PROVI DED BY THIS SECTION DO NOT APPLY TO 5
THE EXTENT THAT THE Y CONFLICT WITH A GO VERNMENT EMPLOYER ’S 6
OBLIGATIONS UNDER FE DERAL LAW OR TO THE EXTENT THAT THEY WOU LD 7
DISQUALIFY THE ENTIT Y FROM A MONETARY OR LICENSING–RELATED BENEFIT 8
UNDER FEDERAL LAW . 9
(3) THIS SECTION DOES NOT AUTHORIZE ANY PERSON TO ENGAGE IN, 10
AND DOES NOT PREVENT THE IMPOSITION OF ANY CI VIL, CRIMINAL, DISCIPLINE, OR 11
OTHER PENALTIES , INCLUDING DISCIPLINE OR TERMINATION BY A GOVERNMENT 12
EMPLOYER FOR ENGAGIN G IN ANY TASK WHILE UNDER THE INFLUENCE OF 13
CANNABIS, WHEN DOING SO WOULD CONSTITUTE NEGLIGENC E OR PROFESSIONAL 14
MALPRACTICE . 15
(F) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO PREVENT OR 16
PROHIBIT ANY EMPLOYER FROM DENYING EMPLOYMENT O R A CONTRACT TO AN 17
INDIVIDUAL OR DISCIP LINING AN EMPLOYEE O R A CONTRACTOR FOR T ESTING 18
POSITIVE FOR THE PRE SENCE OF CANN ABINOIDS OR CANNABIN OID METABOLITES 19
IN THE URINE, BLOOD, SALIVA, BREATH, HAIR, OR OTHER TISSUE OR F LUID OF THE 20
EMPLOYEE’S OR CONTRACTOR ’S BODY, IF THE TEST WAS COND UCTED IN 21
ACCORDANCE WITH THE EMPLOYER’S ESTABLISHED DRUG T ESTING POLICY. 22
36–1302. 23
(A) A HOLDER OF A PROFESSIO NAL OR OCCUPATIONAL LICENSE MAY NOT 24
BE SUBJECT TO PROFES SIONAL DISCIPLINE FO R PROVIDING ADVICE O R SERVICES 25
RELATED TO CANNABIS ESTABLISHMENTS OR AP PLICATIONS TO OPERAT E 26
CANNABIS ESTABLISHME NTS ON THE BASIS THA T CANNABIS IS ILLEGA L UNDER 27
FEDERAL LAW . 28
(B) AN APPLICANT FOR A PR OFESSIONAL OR OCCUPA TIONAL LICENSE MAY 29
NOT BE DENIED A LICE NSE BASED ON PREVIOU S EMPLOYMENT RELATED TO 30
CANNABIS ESTABLISHME NTS OPERATING IN ACC ORDANCE WITH STATE LAW. 31
36–1303. 32
HOUSE BILL 556 73
AN AGENCY OR A POLITI CAL SUBDIVISION OF THE STATE MAY NOT RELY ON A 1
VIOLATION OF FEDERAL LAW RELATED TO CANNA BIS AS THE SOLE BASI S FOR 2
TAKING AN ADVERSE AC TION AGAINST A PERSO N. 3
36–1304. 4
(A) IT IS THE PUBLIC POLI CY OF THE STATE THAT CONTRACTS RELATED TO 5
THE OPERATION OF A C ANNABIS ESTABLI SHMENT LICENSED IN A CCORDANCE WITH 6
THIS SUBTITLE ARE EN FORCEABLE. 7
(B) IT IS THE PUBLIC POLI CY OF THE STATE THAT NO CONTRAC T ENTERED 8
INTO BY A LICENSED C ANNABIS ESTABLISHMEN T OR ITS AGENTS AS A UTHORIZED IN 9
ACCORDANCE WITH A VA LID LICENSE, OR BY THOSE WHO ALLOW PROPERTY TO BE 10
USED BY A CANNABIS E STABLISHMENT , ITS EMPLOYEES , OR ITS AGENTS AS 11
AUTHORIZED IN ACCORD ANCE WITH A VALID LI CENSE, SHALL BE UNENFORCEAB LE 12
ON THE BASIS THAT CU LTIVATING, OBTAINING, MANUFACTURING , DISTRIBUTING, 13
DISPENSING, TRANSPORTING , SELLING, POSSESSING, OR USING CANNABIS IS 14
PROHIBITED BY FEDERA L LAW. 15
SUBTITLE 14. CAPITAL ACCESS PROGRAM. 16
36–1401. 17
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 18
INDICATED. 19
(B) “BORROWER” MEANS A BUSINESS THA T: 20
(1) QUALIFIES AS A SMALL BUSINESS UNDER THE U.S. SMALL 21
BUSINESS ADMINISTRATION SIZE S TANDARDS; 22
(2) APPLIES TO A LENDER FOR BUSINESS FINANCI NG; AND 23
(3) HAS FEWER THAN 50 EMPLOYEES. 24
(C) “LENDER” MEANS: 25
(1) A CREDIT UNION , AS DEFINED IN § 1–101 OF THE FINANCIAL 26
INSTITUTION S ARTICLE; 27
(2) A FINANCIAL INSTITUT ION, AS DEFINED IN § 1–101 OF THE 28
FINANCIAL INSTITUTIONS ARTICLE; OR 29
(3) A COMMUNITY DEVELOPM ENT FINANCIAL INSTIT UTION, AS 30 74 HOUSE BILL 556
DEFINED IN 12 U.S.C. § 4702(5). 1
(D) “PROGRAM” MEANS THE CAPITAL ACCESS PROGRAM ESTABLISHED 2
UNDER THIS SUBTITLE . 3
36–1402. 4
THERE IS A CAPITAL ACCESS PROGRAM IN THE DEPARTMENT OF 5
COMMERCE. 6
36–1403. 7
THE PURPOSE OF THE PROGRAM IS TO STIMULA TE OPPORTUNITIES FOR 8
SOCIAL EQUITY LICENS EES THAT HAVE DIFFIC ULTY OBTAINING FINAN CING AND TO 9
ESTABLISH A LOAN LOS S RESERVE ACCOUNT. 10
36–1404. 11
(A) A LOAN TO A SOCIAL EQU ITY LICENSEE QUALIFI ES UNDER THE 12
PROGRAM IF THE LOAN : 13
(1) SATISFIES THE LENDIN G CRITERIA OF THE FI NANCIAL 14
INSTITUTION; 15
(2) HAS A TERM NOT EXCEE DING 10 YEARS; AND 16
(3) DOES NOT EXCEED $500,000. 17
(B) A LOAN THAT QUALIFIES UNDER SUBSECTION (A) OF THIS SECTION MAY 18
BE SHORT OR LONG TER M, HAVE FIXED OR VARIAB LE RATES, AND BE SECURED OR 19
UNSECURED . 20
36–1405. 21
(A) IF A LENDER WOULD LIK E TO PARTICIPATE IN THE PROGRAM, THE 22
LENDER MUST ENROLL THE QUALIFYING LOAN IN T HE PROGRAM NOT MORE THAN 23
30 DAYS AFTER THE DATE OF THE FIRST DISBURS EMENT OF THE LOAN . 24
(B) A LENDER MAY ENROLL AL L OR A PORTION OF A QUALIFYING LOAN IN 25
AN AMOUNT OF NOT MORE THAN $500,000. 26
36–1406. 27
(A) THE DEPARTMEN T SHALL ESTABLISH A LOAN LOSS RESERVE AC COUNT 28 HOUSE BILL 556 75
FOR A LENDER WHEN THE LENDER ENROLLS ITS F IRST LOAN UNDER THE PROGRAM. 1
(B) AT THE TIME OF ENROLL MENT: 2
(1) THE BORROWER SHALL M AKE A PAYMENT TO THE ACCOUNT OF 3
BETWEEN 0% AND 7% OF THE ENROLLED LOAN AMOUNT; 4
(2) THE LENDER SHALL MAK E A PAYMENT TO THE A CCOUNT OF AT 5
LEAST 2% OF THE ENROLLED AMOU NT; AND 6
(3) THE DIVISION SHALL MAKE A MATCHING PAYMENT TO THE 7
ACCOUNT IN AN AMOUNT EQUAL TO THE BORROWE R AND LENDER ’S AGGREGATE 8
PAYMENT UNDER ITEMS (1) AND (2) OF THIS SUBSECTION . 9
(C) THE LOAN LOSS RESERVE ACCOUNT OF A LENDER SHALL BE AVAILABLE 10
FOR THE LENDER TO WI THDRAW IF A BORROWER DEFAULTS ON A QUALIF YING LOAN. 11
(D) THE DEPARTMENT SHALL COLL ABORATE WITH THE OFFICE OF SOCIAL 12
EQUITY ESTABLISHED UNDER § 1–309.1 OF THIS ARTICLE TO ID ENTIFY AND ASSIST 13
BUSINESSES WITH OBTA INING FINANCING FROM THE PROGRAM. 14
(E) THE DEPARTMENT SHALL ESTA BLISH PROCEDURES FOR A LENDER TO 15
WITHDRAW FROM THE PROGRAM. 16
SUBTITLE 15. BANKING AND INSURANCE. 17
36–1501. 18
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20
(B) “CANNABIS–RELATED LEGITIMATE B USINESS” MEANS A 21
MANUFACTURER , PRODUCER, OR ANOTHER PERSON THAT : 22
(1) PARTICIPATES IN ANY BUSINESS OR ORGANIZE D ACTIVITY THAT 23
INVOLVES HANDLING CA NNABIS OR CANNABIS P RODUCTS, INCLUDING 24
CULTIVATING, PRODUCING, MANUFACTURING , SELLING, TRANSPORTING , 25
DISPLAYING, DISPENSING, DISTRIBUTING, OR PURCHASING CANNAB IS OR CANNABIS 26
PRODUCTS; AND 27
(2) ENGAGES IN AN ACTIVI TY DESCRIBED IN ITEM (1) OF THIS 28
SUBSECTION IN ACCORDANCE WITH STATE LAW. 29
(C) (1) “SERVICE PROVIDER ” MEANS: 30 76 HOUSE BILL 556
(I) A BUSINESS, AN ORGANIZATION , OR ANY OTHER PERSON 1
THAT: 2
1. SELLS GOODS OR SERVI CES TO A CANNABIS –RELATED 3
LEGITIMATE BUSINESS ; OR 4
2. PROVIDES ANY BUSINES S SERVICES, INCLUDING THE 5
SALE OR LEASE OF REAL OR ANY OTHER PR OPERTY, LEGAL OR OTHER LICEN SED 6
SERVICES, OR ANY OTHER ANCILLA RY SERVICE, RELATING TO CANNABIS . 7
(2) “SERVICE PROVIDER ” DOES NOT INCLUDE A B USINESS, AN 8
ORGANIZATION , OR ANY OTHER PERSON THAT PA RTICIPATES IN ANY BU SINESS OR 9
ORGANIZED A CTIVITY THAT INVOLVE S HANDLING CANNABIS OR CANNABIS 10
PRODUCTS, INCLUDING CULTIVATIN G, PRODUCING, MANUFACTURING , SELLING, 11
TRANSPORTING , DISPLAYING, DISPENSING, DISTRIBUTING, OR PURCHASING 12
CANNABIS OR CANNABIS PRODUCTS. 13
36–1502. 14
THE PROVISIONS IN THI S SUBTITLE APPLY TO: 15
(1) ALL BANKS, CREDIT UNIONS , AND OTHER ENTITIES O PERATING AS 16
DEPOSITORY INSTITUTI ONS IN THE STATE; AND 17
(2) INSURANCE COMPANIES AND INSURANCE PRODUC ERS 18
OPERATING IN THE STATE. 19
36–1503. 20
(A) THE STATE BANKING REGULATOR MA Y NOT: 21
(1) TERMINATE OR LIMIT T HE DEPOSIT INSURANCE OR SHARE 22
INSURANCE OF A DEPOS ITORY INSTITUTION UN DER THE FEDERAL DEPOSIT 23
INSURANCE ACT OR THE FEDERAL CREDIT UNION ACT, A DEPOSITORY 24
INSTITUTION OPERATIN G IN THE STATE UNDER THE FINANCIAL INSTITUTIONS 25
ARTICLE, OR TAKE ANY OTHER AD VERSE ACTION AGAINST A DEPOSITORY 26
INSTITUTION UNDER 12 U.S.C. § 1818 SOLELY BECAUSE THE D EPOSITORY 27
INSTITUTION PROVIDES OR HAS PROVIDED FINA NCIAL SERVICE S TO A 28
CANNABIS–RELATED LEGITIMATE B USINESS OR SERVICE P ROVIDER; 29
(2) PROHIBIT, PENALIZE, OR OTHERWISE DISCOUR AGE A 30
DEPOSITORY INSTITUTI ON FROM PROVIDING FI NANCIAL SERVICES TO A 31 HOUSE BILL 556 77
CANNABIS–RELATED LEGITIMATE B USINESS IN THE STATE; 1
(3) RECOMMEND , INCENTIVIZE, OR ENCOURAGE A DEPOS ITORY 2
INSTITUTION NOT TO O FFER FINANCIAL SERVI CES TO AN ACCOUNT HO LDER, OR TO 3
DOWNGRADE OR CANCEL THE FINANCIAL SERVIC ES OFFERED TO AN ACC OUNT 4
HOLDER SOLELY BECAUS E: 5
(I) THE ACCOUNT HOLDER I S A CANNABIS –RELATED 6
LEGITIMATE BU SINESS OR SERVICE PR OVIDER, OR IS AN EMPLOYEE , OWNER, OR 7
OPERATOR OF A CANNAB IS–RELATED LEGITIMATE B USINESS OR SERVICE 8
PROVIDER; 9
(II) THE ACCOUNT HOLDER L ATER BECOMES AN EMPL OYEE, 10
OWNER, OR OPERATOR OF A CAN NABIS–RELATED LEGITIMATE B USINESS OR 11
SERVICE PROVIDER; OR 12
(III) THE DEPOSITORY INSTI TUTION WAS NOT AWARE THAT THE 13
ACCOUNT HOLDER IS AN EMPLOYEE, OWNER, OR OPERATOR OF A 14
CANNABIS–RELATED LEGITIMATE B USINESS OR SERVICE P ROVIDER; 15
(4) TAKE ANY ADVERSE OR CORRECTIVE SUPERVISO RY ACTION ON A 16
LOAN MADE TO: 17
(I) A CANNABIS–RELATED LEGITIMATE B USINESS OR SERVICE 18
PROVIDER SOLELY BECA USE THE BUSINESS IS A CANNABIS–RELATED LEGITIMATE 19
BUSINESS OR SERVICE PROVIDER; 20
(II) AN EMPLOYEE , OWNER, OR OPERATOR OF A 21
CANNABIS–RELATED LEGITIMATE B USINESS OR SERV ICE PROVIDER SOLELY 22
BECAUSE THE EMPLOYEE , OWNER, OR OPERATOR IS EMPLO YED BY, OWNS, OR 23
OPERATES A CANNABIS –RELATED LEGITIMATE B USINESS OR SERVICE P ROVIDER, AS 24
APPLICABLE; OR 25
(III) AN OWNER OR OPERATOR OF REAL ESTATE OR EQ UIPMENT 26
THAT IS LEASED TO A CANNABIS–RELATED LEGITIMATE B USINESS OR SERVICE 27
PROVIDER SOLELY BECA USE THE OWNER OR OPE RATOR OF THE REAL ES TATE OR 28
EQUIPMENT LEASED THE EQUIPMENT OR REAL ES TATE TO A CANNABIS –RELATED 29
LEGITIMATE BUSINESS OR SERVICE PROVIDER , AS APPLICABLE; OR 30
(5) PROHIBIT OR PENALIZE A DEP OSITORY INSTITUTION , OR AN 31
ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN ASSOCIATION WITH A 32
DEPOSITORY INSTITUTI ON, OR OTHERWISE DISCOUR AGE A DEPOSITORY 33
INSTITUTION, OR AN ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN 34 78 HOUSE BILL 556
ASSOCIATION WI TH A DEPOSITORY INST ITUTION, FROM ENGAGING IN A F INANCIAL 1
SERVICE FOR A CANNAB IS–RELATED LEGITIMATE B USINESS OR SERVICE P ROVIDER. 2
(B) SUBSECTION (A) OF THIS SECTION SHAL L APPLY TO AN INSTIT UTION 3
APPLYING FOR A DEPOS ITORY INSTITUTION CH ARTER TO THE SAME E XTENT AS IT 4
APPLIES TO A DEPOSIT ORY INSTITUTION . 5
36–1504. 6
FOR THE PURPOSES OF TITLE 18 U.S.C. §§ 1956 AND 1957 AND ALL OTHER 7
PROVISIONS OF FEDERAL LAW , THE PROCEEDS FROM A TRANSACTION INVOLVIN G 8
ACTIVITIES OF A CANN ABIS–RELATED LEGITIMATE B USINESS OR SERVICE 9
PROVIDER MAY NOT BE CONSIDERED PR OCEEDS FROM AN UNLAW FUL ACTIVITY 10
SOLELY BECAUSE : 11
(1) THE TRANSACTION INVO LVES PROCEEDS FROM A 12
CANNABIS–RELATED LEGITIMATE B USINESS OR SERVICE P ROVIDER; OR 13
(2) THE TRANSACTION IN VOLVES PROCEEDS FROM : 14
(I) CANNABIS–RELATED ACTIVITIES C ONDUCTED BY A 15
CANNABIS–RELATED LEGITIMATE B USINESS; OR 16
(II) ACTIVITIES CONDUCTED BY A SERVICE PROVIDE R. 17
36–1505. 18
(A) WITH RESPECT TO PROVI DING A FINANCIAL SER VICE TO A 19
CANNABIS–RELATED LEGI TIMATE BUSINESS OR A SERVICE PROVIDER , A 20
DEPOSITORY INSTITUTI ON, ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN 21
ASSOCIATION WITH A D EPOSITORY INSTITUTIO N, OR INSURER THAT PROV IDES A 22
FINANCIAL SERVICE TO A CANNABIS–RELATED LEGITIMATE B USINESS OR SERVICE 23
PROVIDER, AND THE OFFICERS , DIRECTORS, AND EMPLOYEES OF THA T DEPOSITORY 24
INSTITUTION, ENTITY, OR INSURER MAY NOT B E HELD LIABLE UNDER ANY STATE 25
LAW OR REGULATION : 26
(1) SOLELY FOR PROVIDING THE FINANCIAL SERVICE ; OR 27
(2) FOR FURTHER INVESTIN G ANY INCOME DERIVED FROM THE 28
FINANCIAL SERVICE . 29
(B) AN INSURER THAT ENGAGES IN THE BUSINESS OF I NSURANCE WITH A 30
CANNABIS–RELATED LEGITIMATE B USINESS OR SERVICE P ROVIDER OR THAT 31 HOUSE BILL 556 79
OTHERWISE ENGAGES WI TH A PERSON IN A TRA NSACTION ALLOWED UNDER STATE 1
LAW RELATED TO CANNA BIS, AND THE OFFICERS , DIRECTORS, AND EMPLOYEES OF 2
THAT INSURER MAY NOT BE HELD LIABLE UNDER STATE LAW OR REGULATI ON: 3
(1) SOLELY FOR ENGAGING IN THE BUSINESS OF I NSURANCE; OR 4
(2) FOR FURTHER INVESTIN G ANY INCOME DERIV ED FROM THE 5
BUSINESS OF INSURANC E. 6
(C) A DEPOSITORY INSTITUTI ON THAT HAS A LEGAL INTEREST IN THE 7
COLLATERAL FOR A LOA N OR ANOTHER FINANCI AL SERVICE PROVIDED TO AN 8
OWNER, EMPLOYEE, OR OPERATOR OF A CAN NABIS–RELATED LEGITIMATE 9
BUSINESS OR SERVICE PROVIDER, OR TO AN OWNER OR OP ERATOR OF REAL ESTAT E 10
OR EQUIPMENT THAT IS LEASED OR SOLD TO A CANNABIS–RELATED LEGITIMATE 11
BUSINESS OR SERVICE PROVIDER, MAY NOT BE SUBJECT TO CR IMINAL, CIVIL, OR 12
ADMINISTRATIVE FORFE ITURE OF THAT LEGAL INTEREST UNDER STATE LAW FOR 13
PROVIDING THE LOAN OR OTHER FINANC IAL SERVICE. 14
36–1506. 15
(A) THIS SUBTITLE DOES NOT REQUIRE A DEPOSITORY INSTITUTION, 16
ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN ASSOCIATION WITH A 17
DEPOSITORY INSTITUTI ON, OR INSURER TO PROVID E FINANCIAL SERVICES TO A 18
CANNABIS–RELATED LEGITIMATE B USINESS, SERVICE PROVIDER , OR ANY OTHER 19
BUSINESS. 20
(B) THIS SUBTITLE MAY NOT BE CONSTRUED TO LIMIT OR OTHERWISE 21
RESTRICT THE GENERAL EXAMINATION , SUPERVISORY , AND ENFORCEMENT 22
AUTHORITY OF THE STATE BANKING REGULATOR , PROVIDED THAT THE BASIS FOR 23
ANY SUPERVISORY OR E NFORCEMENT ACTION IS NOT THE PROVISION OF FINANCIAL 24
SERVICES TO A CANNAB IS–RELATED LEGITIMATE B USINESS OR SERVICE P ROVIDER. 25
(C) THIS SUBTITLE MAY NOT BE CONSTRUED TO INTERFERE WITH THE 26
REGULATION OF THE BU SINESS OF INSURANCE. 27
36–1507. 28
THE STATE MAY NOT COOPERATE OR AID FEDERAL LAW ENFORCEM ENT 29
AUTHORITIES ATTEMPTI NG TO PROSECUTE FINA NCIAL INSTITUTIONS T HAT ARE 30
LAWFULLY OPERATING W ITHIN THE CONFINES O F THIS SUBTITLE. 31
Article – Tax – General 32
2–1302.2. 33 80 HOUSE BILL 556
AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–1301 THROUGH 1
2–1302.1 OF THIS SUBTITLE , OF THE SALES AND USE TAX COLLECTED UNDER § 2
11–104(K) OF THIS ARTICLE FROM THE SALE OF CANNABIS FROM A DISPENSARY TO 3
A CONSUMER UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 4
ARTICLE, THE COMPTROLLER SHALL DIS TRIBUTE: 5
(1) TO THE CANNABIS REGULATION AND ENFORCEMENT FUND, 6
ESTABLISHED UNDER § 36–206 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 7
ARTICLE, AN AMOUNT NECESSARY TO DEFRAY THE ENTIRE COST OF THE 8
OPERATION OF THE CANNABIS REGULATION AND ENFORCEMENT DIVISION 9
ESTABLISHED UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 10
ARTICLE; 11
(2) 30% TO THE COMMUNITY REINVESTMENT AND REPAIR FUND 12
UNDER § 1–322 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE FOR 13
FISCAL YEARS 2024 THROUGH 2033; 14
(3) 1.5% TO COUNT IES AND MUNICIPAL ITIES, WHICH SHALL BE 15
ALLOCATED TO EACH JU RISDICTION BASED ON THE PERCENTAGE OF RE VENUE 16
COLLECTED FROM THAT JURISDICTION; 17
(4) 1.5% TO THE CANNABIS PUBLIC HEALTH FUND ESTABLISHED 18
UNDER § 13–4505 OF THE HEALTH – GENERAL ARTICLE; 19
(5) FOR FISCAL YEARS 2024 THROUGH 2028, 1.5% TO THE CANNABIS 20
BUSINESS ASSISTANCE FUND ESTABLISHED UNDER § 5–1901 OF THE ECONOMIC 21
DEVELOPMENT ARTICLE; AND 22
(6) ANY BALANCE REMAININ G AFTER THE DISTRIBU TIONS REQUIRED 23
UNDER PARAGRAPHS (1) THROUGH (5) OF THIS SECTION TO T HE GENERAL FUND OF 24
THE STATE. 25
2–1303. 26
After making the distributions required under §§ 2–1301 through [2–1302.1] 27
2–1302.2 of this subtitle, the Comptroller shall pay: 28
(1) revenues from the hotel surcharge into the Dorchester County 29
Economic Development Fund established under § 10–130 of the Economic Development 30
Article; 31
(2) to the Blueprint for Maryland’s Future Fund established under § 5–206 32
of the Education Article, the following percentage of the remaining sales and use tax 33 HOUSE BILL 556 81
revenues: 1
(i) for fiscal year 2023, 9.2%; 2
(ii) for fiscal year 2024, 11.0%; 3
(iii) for fiscal year 2025, 11.3%; 4
(iv) for fiscal year 2026, 11.7%; and 5
(v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and 6
(3) the remaining sales and use tax revenue into the General Fund of the 7
State. 8
11–104. 9
(K) THE SALES AND USE TAX RATE FOR THE SALE OF CANNABIS FROM A 10
DISPENSARY TO A CONS UMER UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES 11
AND CANNABIS ARTICLE IS AS FOLLOWS : 12
(1) FOR FISCAL YEAR 2024, 6%; 13
(2) FOR FISCAL YEAR 2025, 7%; 14
(3) FOR FISCAL YEAR 2026, 8%; 15
(4) FOR FISCAL YEAR 2027, 9%; AND 16
(5) FOR FISCAL YEAR 2028 AND EACH FISCA L YEAR THEREAFTER , 17
10%. 18
11–245. 19
THE SALES AND USE TAX DOES NOT APPLY TO TH E SALE OF: 20
(1) MEDICAL CANNABIS UND ER TITLE 36 OF THE ALCOHOLIC 21
BEVERAGES AND CANNABIS ARTICLE; OR 22
(2) CANNABIS BETWEEN CAN NABIS ESTABLISHMENTS THAT ARE 23
LICENSED UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 24
ARTICLE. 25
Article – Economic Development 26
82 HOUSE BILL 556
5–1901. 1
(a) (1) In this section[,] THE FOLLOWING WORDS HAVE THE MEANINGS 2
INDICATED. 3
(2) “Fund” means the Cannabis Business Assistance Fund. 4
(3) (I) “PERSONAL NET WORTH” MEANS THE NET VALUE OF THE 5
ASSETS OF AN INDIVID UAL REMAINING AFTER TOTAL LIABILITIES AR E DEDUCTED, 6
INCLUDING THE INDIVI DUAL’S SHARE OF ASSETS HE LD JOINTLY OR AS COM MUNITY 7
PROPERTY WITH THE IN DIVIDUAL’S SPOUSE. 8
(II) “PERSONAL NET WORTH ” DOES NOT INCLUDE : 9
1. THE INDIVIDUAL ’S OWNERSHIP INTEREST IN THE 10
APPLICANT; 11
2. THE INDIVIDUAL ’S EQUITY IN THE INDIV IDUAL’S 12
PRIMARY PLACE OF RES IDENCE; OR 13
3. THE CASH VALUE OF AN Y QUALIFIED RETIREME NT 14
SAVINGS PLANS OR IND IVIDUAL RETIREMENT A CCOUNTS. 15
(b) There is a Cannabis Business Assistance Fund. 16
(c) The purpose of the Fund is to assist small, minority –owned, and 17
women–owned businesses entering the adult–use cannabis industry. 18
(d) The Department shall administer the Fund. 19
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 20
the State Finance and Procurement Article. 21
(2) The State Treasurer shall hold the Fund separately, and the 22
Comptroller shall account for the Fund. 23
(f) The Fund consists of: 24
(1) money appropriated in the State budget to the Fund; [and] 25
(2) REVENUE DISTRIBUTED TO THE FUND IN ACCORDANCE WI TH § 26
2–1302.2 OF THE TAX – GENERAL ARTICLE; AND 27
(3) any other money from any other source accepted for the benefit of the 28
Fund. 29 HOUSE BILL 556 83
(g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only 1
for: 2
(i) grants or loans to small, minority–owned, or women–owned 3
businesses for: 4
1. license application assistance for participation in the 5
adult–use cannabis industry; 6
2. assistance with the operating or capital expenses of a 7
business participating in the adult–use cannabis industry; or 8
3. targeted training to support participation in the adult–use 9
cannabis industry; and 10
(ii) grants to historically black colleges and universities for 11
cannabis–related programs and business development organizations, including incubators, 12
to train and assist small, minority, and women business owners and entrepreneurs seeking 13
to become licensed to participate in the adult–use cannabis industry. 14
(2) The Department: 15
(i) shall prioritize awarding grants and loans in accordance with 16
paragraph (1) of this subsection to: 17
1. populations that have been historically disproportionately 18
impacted by the enforcement of laws criminalizing the use of cannabis; and 19
2. individuals who have been convicted of a violation of a law 20
criminalizing the use of cannabis; and 21
(ii) may not award grants or loans to small, minority, and women 22
business owners and entrepreneurs with a personal net worth exceeding $1,700,000. 23
(3) In order to award grants and loans in accordance with paragraph (1) of 24
this subsection, the Department shall develop partnerships with: 25
(i) traditional minority–serving institutions in the State and 26
surrounding jurisdictions, including historically black colleges and universities; 27
(ii) trade associations representing minority and women–owned 28
businesses; and 29
(iii) the Governor’s Office of Small, Minority, and Women Business 30
Affairs. 31
84 HOUSE BILL 556
(h) (1) The State Treasurer shall invest the money of the Fund in the same 1
manner as other State money may be invested. 2
(2) Any interest earnings of the Fund shall be credited to the Fund. 3
(i) Expenditures from the Fund may be made only in accordance with the State 4
budget. 5
Article – State Finance and Procurement 6
6–226. 7
(a) (2) (i) Notwithstanding any other provision of law, and unless 8
inconsistent with a federal law, grant agreement, or other federal requirement or with the 9
terms of a gift or settlement agreement, net interest on all State money allocated by the 10
State Treasurer under this section to special funds or accounts, and otherwise entitled to 11
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 12
Fund of the State. 13
(ii) The provisions of subparagraph (i) of this paragraph do not apply 14
to the following funds: 15
170. the Cannabis Public Health Fund; [and] 16
171. the Community Reinvestment and Repair Fund; 17
172. THE CANNABIS REGULATION AND ENFORCEMENT 18
FUND; AND 19
173. THE MEDICAL CANNABIS COMPASSIONATE USE 20
FUND. 21
Article – Health – General 22
13–4505. 23
(a) There is a Cannabis Public Health Fund. 24
(b) The purpose of the Fund is to provide funding to address the health effects 25
associated with the legalization of adult–use cannabis. 26
(c) The Department shall administer the Fund. 27
(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 28
the State Finance and Procurement Article. 29
HOUSE BILL 556 85
(2) The State Treasurer shall hold the Fund separately, and the 1
Comptroller shall account for the Fund. 2
(e) The Fund consists of: 3
(1) Revenue distributed to the Fund based on revenues from adult–use 4
cannabis; 5
(2) Money appropriated in the State budget to the Fund; [and] 6
(3) REVENUE DISTRIBUTED T O THE FUND IN ACCORDANCE WI TH § 7
2–1302.2 OF THE TAX – GENERAL ARTICLE; AND 8
[(3)] (4) Any other money from any other source accepted for the benefit 9
of the Fund. 10
(f) The Fund may be used only for: 11
(1) Supporting the Advisory Council in performing its duties; 12
(2) Supporting data collection and research on the effects of cannabis 13
legalization in the State; 14
(3) Providing funding for education and public awareness campaigns 15
related to cannabis use, including funding for educational programs to be used in schools; 16
(4) Supporting substance use disorder counseling and treatment for 17
individuals; 18
(5) Training and equipment for law enforcement to recognize impairments 19
due to cannabis; and 20
(6) Purchasing technology proven to be effective at measuring cannabis 21
levels in drivers. 22
(g) (1) The State Treasurer shall invest the money of the Fund in the same 23
manner as other State money may be invested. 24
(2) Any interest earnings of the Fund shall be credited to the Fund. 25
(h) Expenditures from the Fund may be made only in accordance with the State 26
budget. 27
SECTION 5. AND BE IT FURTHER ENACTED, That Article – Alcoholic Beverages 28
of the Annotated Code of Maryland be renamed to be Article – Alcoholic Beverages and 29
Cannabis. 30 86 HOUSE BILL 556
SECTION 6. AND BE IT FURTHER ENACTED, That: 1
(a) The transfer of the Maryland Medical Cannabis Commission personnel to the 2
Alcohol, Tobacco, and Cannabis Commission to oversee the regulation of cannabis under 3
this Act shall be conducted in a manner that will minimize the costs of the transfer and will 4
result in a more cost–efficient operation for the regulation of cannabis for the protection of 5
the public health, safety, and welfare of the State. 6
(b) The Cannabis Regulation and Enforcement Division of the Office of the 7
Executive Director of the Alcohol, Tobacco, and Cannabis Commission is the successor of 8
the Maryland Medical Cannabis Commission in matters concerning the regulation of 9
medical cannabis. 10
(c) In every law, executive order, rule, regulation, policy, or document created by 11
an official, an employee, or a unit of this State, the names and titles of those agencies and 12
officials mean the names and titles of the successor agency or official. 13
SECTION 7. AND BE IT FURTHER ENACTED, That all persons w ho, as of June 14
30, 2023, are merit employees or contract staff in budgeted positions of the Maryland 15
Medical Cannabis Commission and whose positions are transferred to the Cannabis 16
Regulation and Enforcement Division of the Office of the Executive Director of the Alcohol, 17
Tobacco, and Cannabis Commission to oversee, the regulation of cannabis provided by this 18
Act, are hereby transferred to the Cannabis Regulation and Enforcement Division of the 19
Office of the Executive Director of the Alcohol, Tobacco, and Cannabis Commission without 20
any change or loss of rights, pay, working conditions, benefits, rights, or status, and shall 21
retain any merit system and retirement status they may have on the date of transfer. 22
SECTION 8. AND BE IT FURTHER ENACTED, That the b alance of the Natalie M. 23
LaPrade Medical Cannabis Fund on the date immediately preceding the date this Act takes 24
effect shall be credited to the Cannabis Regulation and Enforcement Fund, and that any 25
funds credited to the Cannabis Regulation and Enforcement Fund may be used to cover the 26
costs of implementing this Act and regulating the cannabis industry in Maryland. 27
SECTION 9. AND BE IT FURTHER ENACTED, That, notwithstanding any other 28
provision of law, from the date this Act takes effect to December 31, 2023, both inclusive, 29
the Commission is exempt from procurement requirements under the State Finance and 30
Procurement Article if the procurement is for: 31
(1) banking services for the Division to collect fees and tax revenue; 32
(2) banking services to help support cannabis businesses to transition from 33
an all cash system; 34
(3) a consultant to support the Division in the process for cannabis 35
licensure, including services related to investigations and the financial or criminal history 36
review of applicants; and 37 HOUSE BILL 556 87
(4) a consultant to provide technical assistance to social equity applicants. 1
SECTION 10. AND BE IT FURTHER ENACTED, That : 2
(a) To the extent practicable and authorized by the U.S. Constitution, a cannabis 3
licensee shall comply with the State’s Minority Business Enterprise Program. 4
(b) On or before 6 months after the issuance of a cannabis license under § 36–401 5
of the Alcoholic Beverages and Cannabis Article, the Governor’s Office of Small, Minority, 6
and Women Business Affairs, in consultation with the Office of the Attorney General and 7
the Office of Social Equity within the Alcohol, Tobacco, and Cannabis Commission and the 8
cannabis licensee, shall establish a clear plan for setting reasonable and appropriate 9
minority business enterprise participation goals and procedures for the procurement of 10
goods and services related to cannabis, including the cultivation, manufacturing, and 11
dispensing of cannabis. 12
(c) To the extent practicable, the goals and procedures specified in subsection (b) 13
of this section shall be based on the requirements of Title 14, Subtitle 3 of the State Finance 14
and Procurement Article and the regulations implementing that subtitle. 15
SECTION 11. AND BE IT FURTHER ENACTED, That: 16
(a) (1) As soon as practicable after the effective date of this Act, the Cannabis 17
Regulation and Enforcement Division established under § 36–201 of the Alcoholic 18
Beverages and Cannabis Article, as enacted by Section 4 of this Act, shall issue a license to 19
operate as a cannabis grower under Title 36, Subtitle 4 of the Alcoholic Beverages and 20
Cannabis Article, as enacted by Section 4 of this Act, to one applicant that is a recognized 21
class member of Pigford v. Glickman, 185 F.R.D. 82 (D.D.C. 1999), or In Re Black Farmers 22
Litig., 856 F. Supp. 2d 1 (D.D.C. 2011). 23
(2) An applicant awarded a license under paragraph (1) of this subsection 24
may subsequently apply for and be awarded a license to operate as a cannabis processor 25
under Title 36, Subtitle 4 of the Alcoholic Beverages and Cannabis Article, as enacted by 26
Section 4 of this Act. 27
(b) Notwithstanding any other provision of law, a license issued under subsection 28
(a) of this section is in addition to and not subject to the limitations on the total number of 29
licenses that the Division may issue under Title 36, Subtitle 4 of the Alcoholic Beverages 30
and Cannabis Article, as enacted by Section 4 of this Act. 31
(c) If an applicant for a license to operate as a cannabis grower that is a 32
recognized class member is not awarded a license under subsection (a) of this section: 33
(1) the applicant may apply for a license in accordance with the provisions 34
of Title 36 of the Alcoholic Beverages and Cannabis Article, as enacted by Section 4 of this 35
Act; 36 88 HOUSE BILL 556
(2) the Division shall allow the applicant to amend, if necessary, and 1
resubmit the applicant’s application or withdraw the application entirely; and 2
(3) the Division may waive the initial application fee for the applicant but 3
may charge the applicant a reasonable fee for the resubmission or an unamended or 4
amended application. 5
SECTION 12. AND BE IT FURTHER ENACTED, That the publisher of the 6
Annotated Code of Maryland, in consultation with and subject to the approval of the 7
Department of Legislative Services, shall correct, with no further action required by the 8
General Assembly, cross–references and terminology rendered incorrect by this Act. The 9
publisher shall adequately describe any correction that is made in an editor’s note following 10
the section affected. 11
SECTION 13. AND BE IT FURTHER ENACTED, That this Act is an emergency 12
measure, is necessary for the immediate preservation of the public health or safety, has 13
been passed by a yea and nay vote supported by three–fifths of all the members elected to 14
each of the two Houses of the General Assembly, and shall take effect from the date it is 15
enacted. 16