EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0556*
HOUSE BILL 556
A1, J1, Q4 EMERGENCY BILL 3lr0457
CF SB 516
By: Delegates Wilson and Atterbeary
Introduced and read first time: February 3, 2023
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 2, 2023
CHAPTER ______
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 as an independent unit in the 10
Commission; requiring the Division to establish and maintain a State cannabis 11
testing laboratory; establishing the Cannabis Regulation and Enforcement Fund as 12
a special, nonlapsing fund; requiring that the investment earnings of the Cannabis 13
Regulation and Enforcement Fund be credited to the Fund; repealing certain 14
provisions of law establishing and governing the Natalie M. LaPrade Medical 15
Cannabis Commission; requiring the Division, rather than the Natalie M. LaPrade 16
Medical Cannabis Commission, to take certain actions related to medical cannabis; 17
requiring the Division, on or before a certain date and under certain circumstances, 18
to convert medical cannabis licenses to licenses to operate a medical and adult–use 19
cannabis business; regulating the actions that local jurisdictions political 20
subdivisions may take regarding cannabis businesses; prohibiting certain 21
individuals from taking certain actions related to cannabis licensees and registrants; 22
establishing the Medical Cannabis Compassionate Use Fund as a special, nonlapsing 23
fund; requiring that the interest earnings of the Medical Cannabis Compassionate 24
Use Fund be credited to the Fund; authorizing certain entities to register with the 25 2 HOUSE BILL 556
Division to purchase cannabis for research purposes; establishing prohibitions 1
related to the advertising of cannabis and cannabis products; requiring a person to 2
be approved by the Division to offer a certain training program; establishing certain 3
legal protections related to the use of cannabis; establishing a Capital Access 4
Program in the Department of Commerce; establishing certain prohibitions related 5
to banking by cannabis businesses; altering certain provisions of law relating to the 6
Cannabis Business Assistance Fund; exempting the Commission from State 7
procurement requirements under certain circumstances; requiring a cannabis 8
licensee, under certain circumstances, to comply with the State’s Minority Business 9
Enterprise Program; requiring the Commission to contract with an independent 10
consultant to complete a study on wholesale cannabis licenses; requiring the study 11
to be submitted to certain persons on or before a certain date; requiring the Maryland 12
Economic Development Corporation to identify certain locations and submit a 13
certain report to the General Assembly; requiring the Commission to study and 14
report on certain matters relating to on–site consumption and certain cannabis 15
products; and generally relating to medical and adult–use cannabis. 16
BY repealing 17
Article – Health – General 18
Section 13–3301 through 13–3316 and the subtitle “Subtitle 33. Natalie M. LaPrade 19
Medical Cannabis Commission” 20
Annotated Code of Maryland 21
(2019 Replacement Volume and 2022 Supplement) 22
BY repealing 23
Article – Health – General 24
The subtitle designation “Subtitle 46. Community Reinvestment and Repair Fund” 25
immediately preceding Section 13–4601 26
Annotated Code of Maryland 27
(2019 Replacement Volume and 2022 Supplement) 28
(As enacted by Chapter 26 of the Acts of the General Assembly of 2022) 29
BY transferring 30
Article – Health – General 31
Section 13–4601 32
Annotated Code of Maryland 33
(2019 Replacement Volume and 2022 Supplement) 34
(As enacted by Chapter 26 of the Acts of the General Assembly of 2022) 35
to be 36
Article – Alcoholic Beverages 37
Section 1–322 38
Annotated Code of Maryland 39
(2016 Volume and 2022 Supplement) 40
BY renumbering 41
Article – Alcoholic Beverages 42
Section 1–101(d) through (y) and (z) through (ii) 43 HOUSE BILL 556 3
to be Section 1–101(e) through (z) and (bb) through (kk), respectively 1
Annotated Code of Maryland 2
(2016 Volume and 2022 Supplement) 3
BY repealing and reenacting, without amendments, 4
Article – Alcoholic Beverages 5
Section 1–101(a) 6
Annotated Code of Maryland 7
(2016 Volume and 2022 Supplement) 8
BY adding to 9
Article – Alcoholic Beverages 10
Section 1–101(d) and (aa), 1–309.1, 1–309.2, and 1–323; and 36–101 through 11
36–1507 to be under the new division “Division III. Cannabis” 12
Annotated Code of Maryland 13
(2016 Volume and 2022 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Alcoholic Beverages 16
Section 1–101(g) and (r) 17
Annotated Code of Maryland 18
(2016 Volume and 2022 Supplement) 19
(As enacted by Section 4 of this Act) 20
BY repealing and reenacting, with amendments, 21
Article – Alcoholic Beverages 22
Section 1–101(f) and (q) 1–202; and 1–302, 1–303(a), 1–304, 1–307 through 1–310, 23
and 1–313 to be under the amended subtitle “Subtitle 3. Alcohol, Tobacco, and 24
Cannabis Commission” 25
Annotated Code of Maryland 26
(2016 Volume and 2022 Supplement) 27
BY adding to 28
Article – Alcoholic Beverages 29
Section 1–309.1, 1–309.2, and 1–323; and 36–101 through 36–1507 to be under the 30
new division “Division III. Cannabis” 31
Annotated Code of Maryland 32
(2016 Volume and 2022 Supplement) 33
BY repealing and reenacting, with amendments, 34
Article – Alcoholic Beverages 35
Section 1–322 36
Annotated Code of Maryland 37
(2016 Volume and 2022 Supplement) 38
(As enacted by Section 3 of this Act) 39
BY adding to 40 4 HOUSE BILL 556
Article – Tax – General 1
Section 2–1302.2, 11–104(k), and 11–245 2
Annotated Code of Maryland 3
(2022 Replacement Volume) 4
BY repealing and reenacting, with amendments, 5
Article – Tax – General 6
Section 2–1303 7
Annotated Code of Maryland 8
(2022 Replacement Volume) 9
BY repealing and reenacting, with amendments, 10
Article – Economic Development 11
Section 5–1901 12
Annotated Code of Maryland 13
(2018 Replacement Volume and 2022 Supplement) 14
BY repealing and reenacting, without amendments, 15
Article – State Finance and Procurement 16
Section 6–226(a)(2)(i) 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2022 Supplement) 19
BY repealing and reenacting, with amendments, 20
Article – State Finance and Procurement 21
Section 6–226(a)(2)(ii)170. and 171. 22
Annotated Code of Maryland 23
(2021 Replacement Volume and 2022 Supplement) 24
BY adding to 25
Article – State Finance and Procurement 26
Section 6–226(a)(2)(ii)172. and 173. 27
Annotated Code of Maryland 28
(2021 Replacement Volume and 2022 Supplement) 29
BY repealing and reenacting, with amendments, 30
Article – State Personnel and Pensions 31
Section 23–201(a)(13) and (14) and 26–201(a)(22) 32
Annotated Code of Maryland 33
(2015 Replacement Volume and 2022 Supplement) 34
BY adding to 35
Article – State Personnel and Pensions 36
Section 23–201(a)(15) 37
Annotated Code of Maryland 38
(2015 Replacement Volume and 2022 Supplement) 39
HOUSE BILL 556 5
BY repealing and reenacting, with amendments, 1
Article – Health – General 2
Section 13–4505 3
Annotated Code of Maryland 4
(2019 Replacement Volume and 2022 Supplement) 5
BY renaming 6
Article – Alcoholic Beverages 7
to be Article – Alcoholic Beverages and Cannabis 8
Annotated Code of Maryland 9
(2016 Volume and 2022 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That Section(s) 13–3301 through 13–3316 and the subtitle “Subtitle 33. Natalie M. LaPrade 12
Medical Cannabis Commission” of Article – Health – General of the Annotated Code of 13
Maryland be repealed. 14
SECTION 2. AND BE IT FURTHER ENACTED, That the subtitle designation 15
“Subtitle 46. Community Reinvestment and Repair Fu nd.” immediately preceding § 16
13–4601 of the Health – General Article be repealed. 17
SECTION 3. AND BE IT FURTHER ENACTED, That Section(s) 13 –4601 of Article 18
– Health – General of the Annotated Code of Maryland be transferred to be Section(s) 19
1–322 of Article – Alcoholic Beverages of the Annotated Code of Maryland. 20
SECTION 4. AND BE IT FURTHER ENACTED, That Section(s) 1 –101(d) through 21
(y) and (z) through (ii) of Article – Alcoholic Beverages of the Annotated Code of Maryland 22
be renumbered to be Section(s) 1–101(e) through (z) and (bb) through (kk), respectively. 23
SECTION 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 24
as follows: 25
Article – Alcoholic Beverages 26
1–101. 27
(a) In this article the following words have the meanings indicated. 28
(D) (1) “CANNABIS” MEANS THE PLANT CANNABIS SATIVA L. AND ANY 29
PART OF THE PLANT , INCLUDING ALL DERIVA TIVES, EXTRACTS, CANNABINOIDS , 30
ISOMERS, ACIDS, SALTS, AND SALTS OF ISOMERS , WHETHER GROWING OR N OT, WITH 31
A DELTA–9–TETRAHYDROCANNABINOL CONCENTRATION GREATER THAN 0.3% ON A 32
DRY WEIGHT BASIS . 33
(2) “CANNABIS” INCLUDES CANNABIS PR ODUCTS. 34
6 HOUSE BILL 556
(3) “CANNABIS” DOES NOT INCLUDE HEM P OR HEMP PRODUCTS , AS 1
DEFINED IN § 14–101 OF THE AGRICULTURE ARTICLE. 2
(f) (g) “Commission” means the Alcohol [and], Tobacco, AND CANNABIS 3
Commission. 4
(q) (r) (1) “License holder” means the holder of [a] AN ALCOHOLIC BEVERAGE 5
BEVERAGES license issued or a permit granted under this article. 6
(2) “License holder” includes: 7
(i) a county liquor control board and a county dispensary; and 8
(ii) for the delivery and billing purposes of Title 2, Subtitle 3 and §§ 9
2–213 and 2–314 of this article, a corporation on behalf of which an individual has obtained 10
a license. 11
(AA) “POLITICAL SUBDIVISION ” MEANS A COUNTY OR A MUNICIPALITY. 12
1–202. 13
(a) To the extent that a statement of a general rule of law conflicts or is 14
inconsistent with an exception or a qualification applicable to a special area, particular 15
person, or set of circumstances, the exception or qualification prevails. 16
(b) A provision in Division II of this article prevails over a conflicting or 17
inconsistent provision in Division I of this article or a provision in the Tax – General Article 18
relating to alcoholic beverages. 19
(C) A PROVISION IN DIVISION III OF THIS ART ICLE PREVAILS OVER A 20
CONFLICTING OR INCON SISTENT PROVISION IN DIVISION I OF THIS ARTICLE OR A 21
PROVISION IN THE TAX – GENERAL ARTICLE RELATING TO C ANNABIS. 22
Subtitle 3. Alcohol [and], Tobacco, AND CANNABIS Commission. 23
1–302. 24
There is an Alcohol [and], Tobacco, AND CANNABIS Commission. 25
1–303. 26
(a) (1) The Commission consists of [five] SEVEN members to be appointed by 27
the Governor with the advice and consent of the Senate. 28
(2) The presiding officer of either House of the General Assembly may 29
recommend to the Governor a list of individuals for appointment to the Commission. 30 HOUSE BILL 556 7
(3) Of the Commission members: 1
(i) one shall be knowledgeable and experienced in public health 2
matters; 3
(ii) one shall be knowledgeable and experienced in law enforcement 4
matters; 5
(iii) one shall be knowledgeable and experienced in the alcoholic 6
beverages industry; [and] 7
(IV) TWO SHALL BE KNOWLED GEABLE AND EXPERIENC ED IN 8
THE CANNABIS INDUSTR Y; AND 9
[(iv)] (V) two shall be members of the public who are knowledgeable 10
and experienced in fiscal matters and shall have substantial experience: 11
1. as an executive with fiduciary responsibilities in charge of 12
a large organization or foundation; 13
2. in an academic field relating to finance or economics; or 14
3. as an accountant, an economist, or a financial analyst. 15
(4) In addition to the members appointed under paragraph (3) of this 16
subsection, the Secretary of Health and the Secretary of State Police, or their designees, 17
may participate in the Commission as ex officio nonvoting members. 18
1–304. 19
(a) A member of the Commission may not: 20
(1) have a direct or indirect financial interest, ownership, or management, 21
including holding any stocks, bonds, or other similar financial interests, in the alcohol [or], 22
tobacco, OR CANNABIS industries; 23
(2) have an official relationship to a person who holds a license or permit 24
under this article or Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation 25
Article; 26
(3) be an elected official; 27
(4) receive or share in, directly or indirectly, the receipts or proceeds of any 28
activities conducted in the alcohol [or], tobacco, OR CANNABIS industries; 29
8 HOUSE BILL 556
(5) have a beneficial interest in any contract for the manufacture or sale of 1
any device or product or the provision of any independent consulting services in connection 2
with a holder of a license or permit issued under this article or Title 16, Title 16.5, Title 3
16.7, or Title 16.9 of the Business Regulation Article; or 4
(6) accept a contribution of money or property worth at least $100 from an 5
entity or individual associated with the alcohol [or], tobacco, OR CANNABIS industries with 6
respect to the regulation of alcohol [or], tobacco, OR CANNABIS. 7
(b) A member of the Commission shall file a financial disclosure statement with 8
the State Ethics Commission in accordance with Title 5, Subtitle 6 of the General 9
Provisions Article. 10
1–307. 11
(a) The Commission has the powers and duties set forth in this section. 12
(b) The Commission shall: 13
(1) educate the public, by resource sharing and serving as an information 14
clearinghouse, on such topics as: 15
(i) recent increases in alcohol content for popular beer and other 16
beverages; 17
(ii) the proper limits of drinking for adults; 18
(iii) the adverse consequences of surpassing those limits; 19
(iv) parental or adult responsibility for serving alcohol to underage 20
individuals; and 21
(v) comparable topics relating to smoking, vaping, tobacco, other 22
tobacco products, [and] electronic nicotine delivery systems, CANNABIS, AND CANNABIS 23
PRODUCTS; and 24
(2) subject to federal approval, ensure that all alcoholic beverages sold in 25
the State with an alcohol content exceeding 4.5% by volume bear a large and conspicuous 26
label stating the percentage of alcohol content. 27
(c) (1) The Commission shall conduct studies of: 28
(i) the operation and administration of similar laws in other states 29
or countries; and 30
HOUSE BILL 556 9
(ii) federal laws that may affect the operation of the alcohol [or], 1
tobacco, OR CANNABIS industries, the literature on those industries, and the reaction of 2
residents of the State to existing and potential features of those industries. 3
(2) The Commission shall submit to the Governor and, in accordance with 4
§ 2–1257 of the State Government Article, the General Assembly the studies required under 5
this subsection. 6
1–308. 7
The Commission shall develop best practices for: 8
(1) the dedication of a minimum effective portion of the budget of a local 9
licensing board to administrative enforcement activities, such as inspections, compliance 10
checks, overservice, operations, and trade practice violations; 11
(2) the carrying out of compliance checks for alcoholic beverages licenses, 12
in which each license is checked at least once a year; 13
(3) the development of guidelines for the minimum capacity of inspections 14
carried out by inspectors of local licensing boards, based on the number and type of licensed 15
outlets in the licensing jurisdiction; 16
(4) ensuring that alcoholic beverages inspections be based on data such as 17
the violation history of the license holder, and calls for emergency assistance, emergency 18
medical service, or nonemergency service, so that resources are being allocated based on 19
where the greatest need is; 20
(5) the reporting of aggregate data between local police and local licensing 21
boards; 22
(6) the development of mandatory State–provided training for liquor 23
inspectors; 24
(7) reporting by the State to the affected local licensing board of a 25
State–issued license or permit within 10 days after the State receives an application; 26
(8) the development of a public health impact statement for all changes to 27
the State alcoholic beverages laws; [and] 28
(9) ensuring that: 29
(i) all license holders, managers, and servers receive certification 30
from an approved alcohol awareness program; and 31
(ii) at least one employee who is certified in an alcohol awareness 32
program be on the licensed premises at all times when alcoholic beverages are served; 33 10 HOUSE BILL 556
(10) REGULATING THE CANNA BIS INDUSTRY AND IMP LEMENTING 1
PUBLIC HEALTH MEASUR ES RELATING TO CANNA BIS; AND 2
(11) REGULATING , TO THE EXTENT POSSIB LE, MEDICAL AND 3
ADULT–USE CANNABIS IN A SI MILAR MANNER . 4
1–309. 5
(a) With the advice and consent of the Senate, the Governor shall appoint an 6
Executive Director of the Commission. 7
(b) The Executive Director serves at the pleasure of the Governor. 8
(c) The Executive Director shall: 9
(1) have the training and experience, including knowledge of the Maryland 10
alcohol, TOBACCO, AND CANNABIS regulatory system, that is needed to direct the work of 11
the Commission; AND 12
(2) be a sworn police officer with the powers granted to an officer or 13
employee of the Field Enforcement Division under § 1–313 of this subtitle; and 14
(3) devote full time to the duties of office and may not engage in another 15
profession or occupation. 16
(d) THE EXECUTIVE DIRECTOR MAY BE A SWO RN POLICE OFFICER WI TH 17
THE POWERS GRANTED T O AN OFFICER OR EMPL OYEE OF THE FIELD 18
ENFORCEMENT DIVISION UNDER § 1–313 OF THIS SUBTITLE. 19
(E) The Executive Director is entitled to the salary provided in the State budget. 20
1–309.1. 21
(A) THERE IS AN OFFICE OF SOCIAL EQUITY WITHIN IN THE COMMISSION. 22
(B) (1) THE GOVERNOR SHALL APPOIN T AN EXECUTIVE DIRECTOR OF 23
THE OFFICE OF SOCIAL EQUITY. 24
(2) THE EXECUTIVE DIRECTOR OF THE OFFICE OF SOCIAL EQUITY 25
SHALL HAVE AT LEAST 5 YEARS OF EXPERIENCE IN CIVIL RIGHTS ADVO CACY, CIVIL 26
RIGHTS LITIGATION , OR ANOTHER AREA OF S OCIAL JUSTICE. 27
HOUSE BILL 556 11
(C) THE OFFICE OF SOCIAL EQUITY MAY EMPLOY STA FF AND RETAIN 1
CONTRACTORS AS MAY B E REQUIRED TO CARRY OUT THE FUNCTIONS OF THE 2
OFFICE. 3
(D) THE OFFICE OF SOCIAL EQUITY SHALL: 4
(1) PROMOTE AND ENCOURAG E FULL PARTICIPATION IN THE 5
REGULATED CANNABIS I NDUSTRY BY PEOPLE FR OM COMMUNITIES THAT HAVE 6
PREVIOUSL Y BEEN DISPROPORTION ATELY HARMED BY THE WAR ON DRUGS IN 7
ORDER TO POSITIVELY IMPACT THOSE COMMUNI TIES; 8
(2) CONSULT WITH AND ASS IST THE COMPTROLLER IN THE 9
ADMINISTRATION OF TH E COMMUNITY REINVESTMENT AND REPAIR FUND UNDER 10
§ 1–322 OF THIS SUBTITLE ; 11
(3) CONSULT WITH AND ASS IST THE DEPARTMENT OF COMMERCE IN 12
THE ADMINISTRATION O F THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 13
5–1901 OF THE ECONOMIC DEVELOPMENT ARTICLE; 14
(4) IDENTIFY AND OPPOSE REGULATIONS THAT UNN ECESSARILY 15
BURDEN OR UNDERMINE THE LEGISLA TIVE INTENT OF THE OFFICE, INCLUDING 16
REGULATIONS THAT IMP OSE UNDUE RESTRICTIO NS OR FINANCIAL REQU IREMENTS; 17
(5) PROVIDE RECOMMENDATI ONS TO THE COMMISSION ON 18
REGULATIONS RELATED TO: 19
(I) DIVERSITY; AND 20
(II) SOCIAL EQUITY APPLIC ATIONS; 21
(6) WORK WITH THE COMMISSION CANNABIS REGULATION AND 22
ENFORCEMENT DIVISION TO IMPLEMENT FREE TE CHNICAL ASSISTANCE F OR 23
SOCIAL EQUITY AND MI NORITY CANNABIS BUSI NESS APPLICANTS ; 24
(7) PRODUCE REPORTS AND RECOMMENDATIONS ON D IVERSITY AND 25
EQUITY IN OWNERSHIP , MANAGEMENT, AND EMPLOYMENT IN TH E LEGAL CANNABIS 26
ECONOMY; 27
(8) ASSIST BUSINESSES WI TH OBTAINING FINANCI NG THROUGH THE 28
CAPITAL ACCESS PROGRAM UNDER TITLE 36, SUBTITLE 14 OF THIS ARTICLE; AND 29
(9) DETERMINE WHICH INDI VIDUALS AND ENTITIES SHALL BE 30
GRANTED LOA NS OR GRANTS FROM TH E CANNABIS BUSINESS ASSISTANCE FUND 31
UNDER § 5–1901 OF THE ECONOMIC DEVELOPMENT ARTICLE. 32 12 HOUSE BILL 556
(E) (1) ON OR BEFORE MARCH 1 EACH YEAR, THE OFFICE OF SOCIAL 1
EQUITY SHALL PRODUCE AND MAKE PUBLICLY AV AILABLE A REPORT ON HOW THE 2
FUNDS IN THE COMMUNITY REINVESTMENT AND REPAIR FUND UNDER § 1–322 OF 3
THIS SUBTITLE AND TH E CANNABIS BUSINESS ASSISTANCE FUND UNDER § 5–1901 4
OF THE ECONOMIC DEVELOPMENT ARTICLE WERE ALLOCATE D DURING THE 5
IMMEDIATELY PRECEDIN G CALENDAR YEAR . 6
(2) THE REPORT SHALL ALSO BE SUBMITTED TO THE GENERAL 7
ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 8
(F) (1) ON OR BEFORE NOVEMBER 1 EACH YEAR, THE OFFICE OF SOCIAL 9
EQUITY SHALL SOLICIT PUBLIC INPUT ON THE USES OF THE FUNDS IN THE 10
COMMUNITY REINVESTMENT AND REPAIR FUND UNDER § 1–322 OF THIS SUBTITLE 11
AND THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 5–1901 OF THE 12
ECONOMIC DEVELOPMENT ARTICLE. 13
(2) ON OR BEFORE DECEMBER 15 EACH YEAR, THE OFFICE OF 14
SOCIAL EQUITY SHALL PUBLISH A REVIEW OF THE INPU T RECEIVED UNDER 15
PARAGRAPH (1) OF THIS SUBSECTION O N A PUBLICLY ACCESSI BLE PART OF THE 16
COMMISSION’S WEBSITE. 17
1–309.2. 18
(A) IN THIS SECTION, “ADVISORY BOARD” MEANS THE ADVISORY BOARD 19
ON MEDICAL AND ADULT–USE CANNABIS. 20
(B) THERE IS AN ADVISORY BOARD ON MEDICAL AND ADULT–USE 21
CANNABIS. 22
(C) THE ADVISORY BOARD SHALL: 23
(1) CONSIDER ALL MATTERS SUBMITTED TO IT BY T HE COMMISSION, 24
THE GOVERNOR, THE CANNABIS REGULATION AND ENFORCEMENT DIVISION, OR 25
THE GENERAL ASSEMBLY; AND 26
(2) ON ITS OWN INITIATIV E, PROVIDE RECOMMEND ATIONS TO THE 27
COMMISSION OR THE CANNABIS REGULATION AND ENFORCEMENT DIVISION 28
ESTABLISHED UNDER § 36–201 OF THIS ARTICLE REGA RDING GUIDELINES , RULES, 29
AND REGULATIONS THAT THE ADVISORY BOARD CONSIDERS IMPOR TANT OR 30
NECESSARY FOR REVIEW AND CONSIDERATION BY THE COMMISSION OR THE 31
CANNABIS REGULATION AND ENFORCEMENT DIVISION. 32
(D) THE ADVISORY BOARD CONSISTS OF : 33 HOUSE BILL 556 13
(1) THE DIRECTOR OF THE CANNABIS REGULATION AND 1
ENFORCEMENT DIVISION, WHO SHALL SERVE AS CHAIR OF THE ADVISORY BOARD; 2
AND 3
(2) THE FOLLOWING MEMBER S, APPOINTED BY THE GOVERNOR WITH 4
THE ADVICE AND CONSE NT OF THE SENATE: 5
(I) THREE MEMBERS THAT H AVE SUBSTANTIAL EXPE RIENCE IN 6
ONE OR MORE OF THE F OLLOWING: 7
1. CANNABIS LAW , SCIENCE, OR POLICY; 8
2. PUBLIC HEALTH OR HEA LTH CARE; 9
3. AGRICULTURE ; 10
4. FINANCE; OR 11
5. ADDICTION TREATMENT ; 12
(II) ONE ACADEMIC RESEARC HER WITH AT LEAST 5 YEARS OF 13
EXPERIENCE IN SOCIAL OR HEALTH EQUITY ; 14
(III) ONE REPRESENTATIVE O F AN INDEPENDENT TES TING 15
LABORATORY REGISTERE D UNDER § 36–408 OF THIS ARTICLE; 16
(IV) THREE TWO REPRESENTATIVES WHO HOLD A STANDARD 17
GROWER, PROCESSOR, OR DISPENSARY LICENSE UNDER § 36–401 OF THIS ARTICLE; 18
(V) TWO REPRESENTATIVES WHO HOLD A STANDARD 19
PROCESSOR LICENSE UN DER § 36–401 OF THIS ARTICLE; 20
(VI) TWO REPRESENTATIVES WHO HOLD A STANDARD 21
DISPENSARY LICENSE U NDER § 36–401 OF THIS ARTICLE; 22
(V) (VII) THREE TWO REPRESENTATIVES WHO HOLD A MICRO 23
GROWER, PROCESSOR, OR DISPENSARY LICENSE UNDER § 36–401 OF THIS ARTICLE; 24
(VIII) TWO REPRESENTATIVES WHO HOLD A MICRO PROCESS OR 25
LICENSE UNDER § 36–401 OF THIS ARTICLE; 26
(IX) TWO REPRESENTATIVES WHO HOLD A MICRO DIS PENSARY 27
LICENSE UNDER § 36–401 OF THIS ARTICLE; 28
14 HOUSE BILL 556
(X) ONE REPRESENTATIVE W HO HOLDS AN INCUBATO R SPACE 1
LICENSE UNDER § 36–401 OF THIS ARTICLE; 2
(XI) ONE REPRESENTATIVE W HO HOLDS AN ON –SITE 3
CONSUMPTION LICENSE UNDER § 36–401 OF THIS ARTICLE; 4
(VI) (XII) ONE REPRESENTATIVE O F AN ORGANIZATION TH AT 5
ADVOCATES ON BEHALF OF PATIENTS WHO ENGA GE IN THE MEDICAL US E OF 6
CANNABIS; 7
(VII) (XIII) ONE REPRESENTATIVE O F AN ORGANIZATION TH AT 8
ADVOCATES ON BEHALF OF CONSUMERS WHO ENG AGE IN THE ADULT USE OF 9
CANNABIS; AND 10
(VIII) (XIV) ONE HEALTH CARE PROV IDER WHO IS REGISTER ED 11
TO CERTIFY PATIENTS TO OBTAIN MEDICAL CA NNABIS UNDER § 36–301 OF THIS 12
ARTICLE. 13
(E) THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE 14
MAY RECOMMEND TO THE GOVERNOR A LIST OF IN DIVIDUALS FOR APPOIN TMENT 15
TO THE ADVISORY BOARD. 16
(F) (1) THE TERM OF A MEMBER OF THE ADVISORY BOARD IS 4 YEARS. 17
(2) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL 18
A SUCCESSOR IS APPOI NTED AND QUALIFIES . 19
(3) AN APPOINTED MEMBER M AY NOT SERVE MORE TH AN TWO FULL 20
TERMS. 21
(4) THE POSITIONS FOR MEM BERS APPOINTED UNDER SUBSECTION 22
(D)(2)(VII) THROUGH (XI) OF THIS SECTION BECOME EFFEC TIVE WHEN THE FIRST 23
LICENSES ARE ISSUED UNDER THOSE RESPECTI VE LICENSE TYPES . 24
(G) AN APPOINTED MEMBER O F THE ADVISORY BOARD MUST BE : 25
(1) AT LEAST 25 YEARS OLD; 26
(2) A RESIDENT OF THE STATE WHO HAS RESIDED IN THE STATE FOR 27
AT LEAST THE IMMEDIA TELY PRECEDING 5 YEARS BEFORE THE APP OINTMENT; AND 28
(3) A REGISTERED VOTER O F THE STATE. 29
HOUSE BILL 556 15
(H) THE ADVISORY BOARD SHALL ESTABLISH AT LEAST TWO 1
SUBCOMMITTEES TO FOC US ON MEDICAL AND ADULT–USE CANNABIS. 2
(I) TO THE EXTENT PRACTIC ABLE AND CONSISTENT WITH FEDERAL AND 3
STATE LAW, THE MEMBERSHIP OF TH E ADVISORY BOARD SHALL REFLECT T HE 4
RACIAL, ETHNIC, AND GENDER DIVERSITY OF THE STATE. 5
1–310. 6
The Executive Director and all employees in the Office of the Executive Director may 7
not accept a contribution of money or property worth at least $100 from an entity or 8
individual associated with the alcohol [or], tobacco, OR CANNABIS industries with respect 9
to regulation of alcohol [or], tobacco, OR CANNABIS. 10
1–313. 11
(a) There is a Field Enforcement Division in the Office of the Executive Director. 12
(b) (1) The Field Enforcement Division may employ officers and employees as 13
provided in the State budget. 14
(2) The officers and employees of the Field Enforcement Division: 15
(i) shall be sworn police officers; 16
(ii) shall have the powers, duties, and responsibilities of peace 17
officers to enforce the provisions of this article relating to: 18
1. the unlawful importation of alcoholic beverages [and], 19
tobacco, AND CANNABIS into the State; 20
2. the unlawful manufacture of alcoholic beverages [and], 21
tobacco, AND CANNABIS in the State; 22
3. the transportation and distribution throughout the State 23
of alcoholic beverages [and], tobacco, AND CANNABIS that are manufactured illegally and 24
on which any alcoholic beverages taxes [or], tobacco taxes, OR CANNABIS TAXES imposed 25
by the State are due and unpaid; and 26
4. the manufacture, sale, barter, trans portation, 27
distribution, or other form of owning, handling, or dispersing alcoholic beverages [or], 28
tobacco, OR CANNABIS by any person not licensed or authorized under this article, 29
provisions of the Tax – General Article relating to alcoholic beverages [or], tobacco, OR 30
CANNABIS, or provisions of the Business Regulation Article relating to tobacco OR 31
CANNABIS; and 32 16 HOUSE BILL 556
(iii) may make cooperative arrangements for and work and cooperate 1
with the Office of the Comptroller, local State’s Attorneys, sheriffs, bailiffs, police, and other 2
prosecuting and peace officers to enforce this article. 3
(c) The Field Enforcement Division: 4
(1) shall consult with and advise the local State’s Attorneys and other law 5
enforcement officials and police officers regarding enforcement problems in their respective 6
jurisdictions; and 7
(2) may recommend changes to improve the administration of this article, 8
provisions of the Tax – General Article relating to alcoholic beverages [and], tobacco, AND 9
CANNABIS, and provisions of the Business Regulation Article relating to tobacco. 10
1–322. 11
(a) (1) There is a Community Reinvestment and Repair Fund. 12
(2) The purpose of the Fund is to provide funds to community–based 13
organizations that serve communities determined by THE OFFICE OF SOCIAL EQUITY, 14
IN CONSULTATION WITH the Office of the Attorney General, to have been the most 15
impacted by disproportionate enforcement of the cannabis prohibition before July 1, 2022. 16
(3) The Comptroller shall administer the Fund. 17
(4) (i) The Fund is a special, nonlapsing fund that is not subject to § 18
7–302 of the State Finance and Procurement Article. 19
(ii) The State Treasurer shall hold the Fund separately, and the 20
Comptroller shall account for the Fund. 21
(5) The Fund consists of: 22
(i) [Revenue distributed to the Fund that is at least 30% of the 23
revenues from adult–use cannabis] SALES AND USE TAX RE VENUE DISTRIBUTED TO 24
THE FUND UNDER § 2–1302.2 OF THE TAX – GENERAL ARTICLE; 25
(ii) [Licensing] CONVERSION fees paid by [dual–licensed cannabis 26
establishments] BUSINESSES UNDER § 36–403 OF THIS ARTICLE ; and 27
(iii) [Any] ANY other money from any other source accepted for the 28
benefit of the Fund, in accordance with any conditions adopted by the Comptroller for the 29
acceptance of donations or gifts to the Fund. 30
(6) (i) The Fund may be used only for: 31 HOUSE BILL 556 17
1. [Funding] FUNDING community–based initiatives 1
intended to benefit low–income communities; 2
2. [Funding] FUNDING community–based initiatives that 3
serve [communities disproportionately harmed by the cannabis prohibition and 4
enforcement] DISPROPORTIONATELY I MPACTED AREAS , AS DEFINED IN § 36–101 OF 5
THIS ARTICLE; and 6
3. [Any] ANY related administrative expenses. 7
(ii) Money may not be expended from the Fund for law enforcement 8
agencies or activities. 9
(iii) Money expended from the Fund is supplemental to and may not 10
supplant funding that otherwise would be appropriated for preexisting local government 11
programs. 12
(7) The State Treasurer shall invest the money of the Fund in the same 13
manner as other State money may be invested. 14
(8) No part of the Fund may revert or be credited to: 15
(i) [The] THE General Fund of the State; or 16
(ii) [Any] ANY other special fund of the State. 17
(9) The Comptroller shall pay out money from the Fund. 18
(10) The Fund is subject to audit by the Office of Legislative Audits as 19
provided for in § 2–1220 of the State Government Article. 20
(b) (1) The Comptroller shall distribute funds from the Fund to each county in 21
an amount that, for the period from July 1, 2002, to [June 30, 2022] JANUARY 1, 2023, 22
both inclusive, is proportionate to the total number of [cannabis arrests in the county 23
compared to the total number of cannabis arrests in the State] INDIVIDUALS RESIDING 24
IN THE COUNTY WHO WE RE CHARGE D WITH A CANNABIS CR IME COMPARED TO THE 25
TOTAL NUMBER OF INDI VIDUALS CHARGED WITH CANNABIS CRIMES IN T HE STATE. 26
(2) (i) Subject to the limitations under subsection (a)(6) of this section, 27
each county shall adopt a law establishing the purpose for which money received from the 28
Fund may be used. 29
(ii) On or before December 1 every 2 years, beginning in 2024, each 30
local jurisdiction POLITICAL SUBDIVISIO N THAT RECEIVES FUND S FROM THE FUND 31
UNDER PARAGRAPH (1) OF THIS SUBSECTION shall submit a report to the Governor and, 32 18 HOUSE BILL 556
in accordance with § 2–1257 of the State Government Article, the Senate Budget and 1
Taxation Committee[, the Senate Finance Committee, the House Judiciary Committee, and 2
the House Health and Government Operations Committee] AND THE HOUSE 3
APPROPRIATIONS COMMITTEE on how funds received from the Fund were spent during 4
the immediately preceding 2 fiscal years. 5
1–323. 6
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 7
INDICATED. 8
(2) “CANNABIS LICENSEE ” HAS THE MEANING STAT ED IN § 36–101 OF 9
THIS ARTICLE. 10
(3) “DIVISION” HAS THE MEANING STAT ED IN § 36–101 OF THIS 11
ARTICLE. 12
(4) “GRANT PROGRAM” MEANS THE SOCIAL EQUITY PARTNERSHIP 13
GRANT PROGRAM. 14
(5) “OFFICE” MEANS THE OFFICE OF SOCIAL EQUITY. 15
(5) (6) (I) “QUALIFYING PARTNERSHI P” MEANS A MEANINGFUL 16
PARTNERSHIP BETWEEN AN OPERATIONAL CANNA BIS LICENSEE AND A S OCIAL 17
EQUITY LICENSEE THAT : 18
1. SUPPORTS OR ADVISES THE SOCIAL EQUITY 19
LICENSEE; AND 20
2. IS AUTHORIZED BY THE COMMISSION. 21
(II) “QUALIFYING PARTNERSHI P” INCLUDES A PARTNERSH IP 22
THROUGH WHICH THE OP ERATIONAL CANNABIS L ICENSEE PROVIDES ANY OF THE 23
FOLLOWING TO A SOCIA L EQUITY LICENSEE : 24
1. TRAINING; 25
2. MENTORSHIP ; OR 26
3. SHARED COMMERCIAL SP ACE OR EQUIPMENT . 27
(6) (7) “SOCIAL EQUITY LICENSE E” MEANS A SOCIAL EQUIT Y 28
APPLICANT, AS DEFINED IN § 36–101 OF THIS ARTICLE, WHO HAS BEEN AWARDED A 29
CANNABIS LICENSE OR CANNABIS REGISTRATIO N. 30
HOUSE BILL 556 19
(B) (1) THERE IS A SOCIAL EQUITY PARTNERSHIP GRANT PROGRAM IN 1
THE COMMISSION. 2
(2) THE PURPOSE OF THE GRANT PROGRAM IS TO PROMOTE 3
QUALIFYING PARTNERSH IPS BETWEEN OPERATIO NAL CANNABIS LICENSE ES AND 4
SOCIAL EQUITY LICENS EES. 5
(C) (1) THE COMMISSION OFFICE SHALL IMPLEMENT AND ADMINISTER 6
THE GRANT PROGRAM, INCLUDING BY CLEARLY DEFINING THE PARAMETERS OF A 7
QUALIFYING PARTNERSH IP. 8
(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , THE 9
COMMISSION OFFICE HAS DISCRETION TO AP PROVE, DENY, OR REVOKE 10
QUALIFYING PARTNERSH IPS. 11
(3) (I) THE COMMISSION OFFICE MAY APPROVE QUALIFYI NG 12
PARTNERSHIPS WHERE A COST OR OTHER FEE IS IMPOSED BY AN OPE RATIONAL 13
CANNABIS LICENSEE ON A SOCIAL EQUITY LICE NSEE IF THE COST OR OTHER FEE IS 14
SUBSTANTIALLY REDUCE D FROM THE MARKET VA LUE. 15
(II) COSTS OR OTHER FEES U NDER SUBPARAGRAPH (I) OF THIS 16
PARAGRAPH MAY INCLUD E CHARGES FOR THE RENT OF F ACILITIES OR EQUIPME NT. 17
(D) (1) THE COMMISSION OFFICE SHALL AWARD GRANTS T O 18
OPERATIONAL CANNABIS LICENSEES THAT HAVE QUALIFYING PARTNERSH IPS WITH 19
A SOCIAL EQUITY LICE NSEE. 20
(2) GRANT AMOUNTS SHALL B E BASED ON THE NATUR E OF THE 21
QUALIFYING PARTNERSH IP BETWEEN THE SOCIA L EQUITY LICENSEE AN D THE 22
OPERATIONAL CANNABIS LICENSEE. 23
(3) IF AN OPERATIONAL CAN NABIS LICENSEE HAS A LICENSE THAT 24
WAS CONVERTED BY THE DIVISION UNDER § 36–401(B)(1)(II) OF THIS ARTICLE, THE 25
TOTAL AWARD AMOUNT OF ANY GRANTS FROM THE COMMISSION ISSUED BY THE 26
OFFICE UNDER THIS SEC TION TO THE LICENSEE MAY NOT EXCEED: 27
(I) THE COST OF THE LICE NSE CONVERSION FEE T HAT WAS 28
PAID BY THE LICENSEE ; OR 29
(II) $250,000 PER YEAR PER QUALIFY ING PARTNERSHIP . 30
(E) THE COMMISSION OFFICE MAY REQUIRE A GRANT RECIPIENT THAT 31
FAILS TO FULFILL THE REQUIREMENTS OF THE GRANT TO RETURN ALL OR PART OF 32
THE GRANT TO THE GRANT PROGRAM. 33 20 HOUSE BILL 556
(F) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER , THE 1
GOVERNOR SHALL INCLUD E IN THE ANNUA L BUDGET BILL AN APP ROPRIATION OF 2
$5,000,000 FOR THE GRANT PROGRAM. 3
(G) THE COMMISSION OFFICE SHALL ADOPT REGULATI ONS TO: 4
(1) IMPLEMENT THE PROVIS IONS OF THIS SECTION ; 5
(2) ADMINISTER THE GRANT PROGRAM; 6
(3) ESTABLISH ELIGIBILIT Y AND GRANT APPLIC ATION 7
REQUIREMENTS ; 8
(4) ESTABLISH A PROCESS FOR REVIEWING GRANT APPLICATIONS 9
AND AWARDING GRANTS TO SOCIAL EQUITY LIC ENSEES; AND 10
(5) SPECIFY CRITERIA AND PROCEDURES TO MONITO R ELIGIBILITY 11
FOR THE GRANTS AUTHO RIZED UNDER THIS SEC TION. 12
TITLE 34. RESERVED. 13
TITLE 35. RESERVED. 14
DIVISION III. CANNABIS. 15
TITLE 36. MEDICAL AND ADULT–USE CANNABIS. 16
SUBTITLE 1. DEFINITIONS. 17
36–101. 18
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS 19
INDICATED. 20
(B) “ACADEMIC RESEARCH REP RESENTATIVE ” MEANS AN INDIVIDUAL WHO 21
IS: 22
(1) AN EMPLOYEE OR AGENT OF AN INSTITUTION OF HIGHER 23
EDUCATION, A RELATED MEDICAL FA CILITY, OR AN AFFILIATED BIO MEDICAL 24
RESEARCH FIRM THAT F ILED A REGISTRATION WITH THE DIVISION UNDER § 36–701 25
OF THIS TITLE; AND 26
HOUSE BILL 556 21
(2) AUTHORIZED TO P URCHASE MEDICAL CANN ABIS FOR THE 1
INSTITUTION OF HIGHE R EDUCATION, RELATED MEDICAL FACI LITY, OR AFFILIATED 2
BIOMEDICAL RESEARCH FIRM. 3
(C) (1) “CANNABIS” MEANS THE PLANT CANNABIS SATIVA L. AND ANY 4
PART OF THE PLANT , INCLUDING ALL DERIVA TIVES, EXTRACTS, CANNABINOIDS, 5
ISOMERS, ACIDS, SALTS, AND SALTS OF ISOMERS , WHETHER GROWING OR N OT, WITH 6
A DELTA–9–TETRAHYDROCANNABINOL CONCENTRATION GREATE R THAN 0.3% ON A 7
DRY WEIGHT BASIS . 8
(2) “CANNABIS” INCLUDES CANNABIS PR ODUCTS. 9
(3) “CANNABIS” DOES NOT INCLUDE HEM P OR HEMP PRODUCTS , AS 10
DEFINED IN § 14–101 OF THE AGRICULTURE ARTICLE. 11
(D) (C) “CANNABIS AGENT ” MEANS AN EMPLOYEE , A VOLUNTEER , OR ANY 12
OTHER AUTHORIZED PER SON WHO ACTS FOR OR AT THE DIRECTION OF A CANNABIS 13
LICENSEE OR CANNABIS REGISTRANT. 14
(E) (D) “CANNABIS BUSINESS ” MEANS A BUSINESS LIC ENSED BY THE 15
DIVISION TO OPERATE I N THE CANNABIS INDUS TRY. 16
(€(E) “CANNABIS CONCENTRATE ” MEANS A PRODUCT DERI VED FROM 17
CANNABIS THAT IS KIE F, HASHISH, BUBBLE HASH , OIL, WAX, OR ANY OTHER 18
PRODUCT PRODUCED BY EXTRACTIN G CANNABINOIDS FROM THE PLANT THROUGH 19
THE USE OF SOLVENTS , CARBON DIOXIDE , OR HEAT, SCREENS, PRESSES, OR STEAM 20
DISTILLATION. 21
(G) (F) “CANNABIS–INFUSED PRODUCT ” MEANS OIL, WAX, OINTMENT, 22
SALVE, TINCTURE, CAPSULE, SUPPOSITORY , DERMAL PATCH , CARTRIDGE, OR ANY 23
OTHER PRODUCT CONTAI NING CANNABIS CONCEN TRATE OR USABLE CANN ABIS 24
THAT HAS BEEN PROCES SED SO THAT THE DRIE D LEAVES AND FLOWERS ARE 25
INTEGRATED INTO OTHE R MATERIAL. 26
(H) (G) “CANNABIS LICENSEE ” MEANS A BUSINESS LIC ENSED BY THE 27
DIVISION TO OPERATE I N THE CANNABIS INDUSTRY . 28
(I) (H) “CANNABIS PRODUCTS ” MEANS PRODUCTS THAT ARE COMPOSED 29
OF CANNABIS , CANNABIS CONCENTRATE , CANNABIS EXTRACT , OR OTHER 30
INGREDIENTS AND ARE INTENDED FOR USE OR CONSUMPTION , INCLUDING EDIBLE 31
PRODUCTS, OILS, AND TINCTURES . 32
(J) (I) “CANNABIS REGISTRANT ” MEANS AN INDEPENDENT TESTING 33
LABORATORY , A TRANSPORTER , A DELIVERY SERVICE , A SECURITY GUARD 34 22 HOUSE BILL 556
COMPANY, A WASTE DISPOSAL COM PANY, AND ANY OTHER TYPE O F CANNABIS 1
BUSINESS REGISTERED UNDER THIS TITLE AND AUTHORIZED BY THE DIVISION. 2
(K) (J) (1) “CANOPY” MEANS THE TOTAL SQUA RE FOOTAGE OF SPACE 3
USED BY A CANNABIS L ICENSEE FOR THE PROD UCTION OF FLOWERING CANNABIS 4
PLANTS. 5
(2) “CANOPY” INCLUDES EACH LAYER OF FLOWERING CANNABI S 6
PLANTS GROWN ON ANY RACK OR SHELVING . 7
(3) “CANOPY” DOES NOT INCLUDE SQUARE FOOTAG E USED FOR: 8
(I) MOTHER STOCK ; 9
(II) PROPAGATION ; 10
(III) IMMATURE OR NONFLOWE RING PLANTS; 11
(IV) PROCESSING; 12
(V) DRYING; 13
(VI) CURING; 14
(VII) TRIMMING; 15
(VIII) STORAGE; 16
(IX) OFFICES; 17
(X) HALLWAYS; 18
(XI) PATHWAYS; 19
(XII) WORK AREAS ; OR 20
(XIII) OTHER ADMINISTRATIVE AND NONPRODUCTION US ES. 21
(L) (K) (1) “CAREGIVER” MEANS: 22
(I) AN INDIVIDUAL WHO HA S AGREED TO ASSIST W ITH A 23
QUALIFYING PATIENT ’S MEDICAL USE OF CAN NABIS; AND 24
(II) FOR A QUALIFYING PATIENT U NDER THE AGE OF 18 YEARS: 25
HOUSE BILL 556 23
1. A PARENT OR LEGAL GU ARDIAN; AND 1
2. NOT MORE THAN TWO AD DITIONAL ADULTS 2
DESIGNATED BY THE PA RENT OR LEGAL GUARDI AN. 3
(2) “CAREGIVER” DOES NOT INCLUDE ANY DESIGNATED SCHOOL 4
PERSONNEL AUTHORIZED TO ADMINISTER MEDICAL C ANNABIS TO A STUDENT IN 5
ACCORDANCE WITH THE GUIDELINES ESTABLISH ED UNDER § 7–446 OF THE 6
EDUCATION ARTICLE. 7
(M) (L) “CERTIFYING PROVIDER ” MEANS AN INDIVIDUAL WHO: 8
(1) (I) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 9
PRACTICE MEDICINE T HAT WAS ISSUED BY TH E STATE BOARD OF PHYSICIANS 10
UNDER TITLE 14 OF THE HEALTH OCCUPATIONS ARTICLE; AND 11
2. IS IN GOOD STANDING WITH THE STATE BOARD OF 12
PHYSICIANS; 13
(II) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 14
PRACTICE DENTISTRY T HAT WAS ISSUED BY T HE STATE BOARD OF DENTAL 15
EXAMINERS UNDER TITLE 4 OF THE HEALTH OCCUPATIONS ARTICLE; AND 16
2. IS IN GOOD STANDING WITH THE STATE BOARD OF 17
DENTAL EXAMINERS; 18
(III) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 19
PRACTICE PODIATRY TH AT WAS ISSUED BY THE STATE BOARD OF PODIATRIC 20
MEDICAL EXAMINERS UNDER TITLE 16 OF THE HEALTH OCCUPATIONS ARTICLE; 21
AND 22
2. IS IN GOOD STANDING WITH THE STATE BOARD OF 23
PODIATRIC MEDICAL EXAMINERS; 24
(IV) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 25
PRACTICE REGISTERED NURSING OR H AS AN ACTIVE , UNRESTRICTED 26
CERTIFICATION TO PRA CTICE AS A NURSE PRA CTITIONER OR A NURSE MIDWIFE 27
THAT WAS ISSUED BY T HE STATE BOARD OF NURSING UNDER TITLE 8 OF THE 28
HEALTH OCCUPATIONS ARTICLE; AND 29
2. IS IN GOOD STANDING WITH THE STATE BOARD OF 30
NURSING; OR 31
24 HOUSE BILL 556
(V) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 1
PRACTICE AS A PHYSIC IAN ASSISTANT ISSUED BY THE STATE BOARD OF PHYSICIANS 2
UNDER TITLE 15 OF THE HEALTH OCCUPATIONS ARTICLE; 3
2. HAS AN ACTIVE DELEGA TION AGREEMENT WITH A 4
PRIMARY SUPERVISING PHYSICIAN WHO IS A CERTIFYING PROVIDER; AND 5
3. IS IN GOOD STANDING WITH THE STATE BOARD OF 6
PHYSICIANS; 7
(2) HAS A STATE CONTROLLED DANG EROUS SUBSTANCES 8
REGISTRATION ; AND 9
(3) IS REGISTERED WITH T HE DIVISION TO MAKE CANN ABIS 10
AVAILABLE TO PATIENT S FOR MEDICAL USE IN ACCOR DANCE WITH REGULATIO NS 11
ADOPTED BY THE DIVISION. 12
(N) “COMMISSION” MEANS THE ALCOHOL, TOBACCO, AND CANNABIS 13
COMMISSION ESTABLISHE D UNDER § 1–302 OF THIS ARTICLE. 14
(O) (M) “CONSUMER” MEANS AN INDIVIDUAL AT LEAST 21 YEARS OLD 15
WHO PURCHASES CANNABIS O R CANNABIS PRODUCTS FOR PERSONAL USE BY 16
INDIVIDUALS AT LEAST 21 YEARS OLD. 17
(P) (N) (1) “CONTROL” MEANS: 18
(1) (I) THE DECISION –MAKING AUTHORITY OVE R THE 19
MANAGEMENT , OPERATIONS, OR POLICIES THAT GUI DE A BUSINESS; OR 20
(2) (II) AUTHORITY OVER THE OPERA TION OF THE TECHNICA L 21
ASPECTS OF A BUSINES S. 22
(2) “CONTROL” INCLUDES: 23
(I) HOLDING A VOTING INT EREST OF 5% OR MORE IN A 24
CANNABIS LICENSEE OR A RIGHT TO VETO SIGN IFICANT EVENTS; 25
(II) THE RIGHT OR AUTHORI TY TO MAKE OR VETO DECISIONS 26
REGARDING OPERATIONS AND STRATEGIC PLANNI NG, CAPITAL ALLOCATIONS , 27
ACQUISITIONS, AND DIVESTMENTS ; 28
(III) THE RIGHT OR AUTHORI TY TO APPOINT OR REM OVE 29
DIRECTORS, CORPORATE –LEVEL OFFICERS , OR THEIR EQUIVALENT ; 30
HOUSE BILL 556 25
(IV) THE RIGHT OR AUTHORI TY TO MAKE MAJOR MARKETING , 1
PRODUCTION , AND FINANCIAL DECISI ONS; 2
(V) THE RIGHT OR AUTHORI TY TO EXECUTE EXCLUS IVE 3
CONTRACTS OR SIGNIFI CANT CONTRACTS IN TH E AGGREGATE OF $10,000 OR 4
GREATER ON BEHALF OF THE LICENSEE; AND 5
(VI) THE RIGHT OR AUTHORI TY TO EARN 5% OR MORE OF THE 6
PROFITS OR COLLECT 5% OR MORE OF THE DIVID ENDS. 7
(Q) (O) “DELIVERY SERVICE ” MEANS A CANNABIS LIC ENSEE AUTHORIZED 8
TO DELIVER CANNABIS IN ACCORDANCE WITH A MICRO LICENSE TO OPE RATE A 9
DISPENSARY. 10
(R) (P) “DISPENSARY” MEANS AN ENTITY LICE NSED UNDER THIS TITLE 11
THAT 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 MATERIAL S FOR USE BY QUAL IFYING PATIENTS , CAREGIVERS, OR 15
CONSUMERS THROUGH A STOREFRONT OR THROUG H A DELIVERY SERVICE , BASED 16
ON LICENSE TYPE . 17
(S) (Q) “DISPROPORTIONATELY IM PACTED AREA” MEANS A GEOGRAPHIC 18
AREA IDENTIFIED BY T HE OFFICE OF SOCIAL EQUITY THAT HAS BEEN 19
DISPROPORTIONATELY I MPACTED BY THE PROHI BITION OF CANNABIS HAD ABOVE 20
150% OF THE STATE’S 10–YEAR AVERAGE FOR CAN NABIS POSSESSION CHA RGES, AS 21
DETERMINED BY INFORM ATION FROM THE ADMINISTRATIVE OFFICE OF THE 22
COURTS. 23
(T) (R) “DIVISION” MEANS THE CANNABIS REGULATION AND 24
ENFORCEMENT DIVISION ESTABLISHED UNDER THIS TITLE . 25
(U) (S) (1) “EDIBLE CANNABIS PRODU CT” MEANS A CANNABIS 26
PRODUCT INTENDED FOR HUMAN CONSUMPTION BY ORAL INGESTION , IN WHOLE OR 27
IN PART. 28
(2) “EDIBLE CANNABIS PRODU CT” INCLUDES A CANNABIS PRODUCT 29
THAT DISSOLVES OR DI SINTEGRATES IN THE M OUTH. 30
(3) “EDIBLE CANNABIS PRODU CT” DOES NOT INCLUDE ANY : 31
(I) CANNABIS CONCENTRATE ; 32
26 HOUSE BILL 556
(II) CANNABIS–INFUSED PRODUCT , INCLUDING AN OIL , A WAX, 1
AN OINTMEN T, A SALVE, A TINCTURE, A CAPSULE, A SUPPOSITORY , A DERMAL 2
PATCH, OR A CARTRIDGE ; OR 3
(III) OTHER DOSAGE FORM TH AT IS RECOGNIZED BY THE 4
UNITED STATES PHARMACOPEIA , THE NATIONAL FORMULARY, OR THE U.S. FOOD 5
AND DRUG ADMINISTRATION AND IS APPROVED BY THE DIVISION. 6
(V) (T) “GROWER” MEANS AN ENTITY LICE NSED UNDER THIS TITL E THAT: 7
(1) CULTIVATES, OR PACKAGES, OR DISTRIBUTES CANNABIS; AND 8
(2) IS AUTHORIZED BY THE DIVISION TO PROVIDE C ANNABIS TO 9
OTHER CANNABIS LICEN SEES AND REGISTERED INDEPENDENT TESTING 10
LABORATORIES . 11
(W) (U) “INCUBATOR SPACE ” MEANS A FACILITY OPE RATED IN 12
ACCORDANCE WITH § 36–401 § 36–401(C)(3) OF THIS TITLE. 13
(X) (V) “INDEPENDENT TESTING L ABORATORY ” MEANS A FACILITY , AN 14
ENTITY, OR A SITE THAT IS RE GISTERED WITH THE DIVISION TO PERFORM T ESTS 15
RELATED TO THE INSPE CTION AND TESTING OF CANNABIS AND PRODUCT S 16
CONTAINING CANNABIS . 17
(W) “INSTITUTION OF HIGHER EDUCATION” HAS THE MEANING STATED IN § 18
10–101 OF THE EDUCATION ARTICLE. 19
(Y) (X) “MICRO LICENSE” MEANS A LICENSE ISSU ED IN ACCORDANCE 20
WITH § 36–401 § 36–401(C)(2) OF THIS TITLE. 21
(Z) (Y) “ON–SITE CONSUMPTION EST ABLISHMENT ” MEANS AN ENTITY 22
LICENSED UNDER § 36–401(C)(4) OF THIS TITLE TO DISTRI BUTE CANNABIS OR 23
CANNABIS PRODUCTS FO R ON–SITE CONSUMPTION . 24
(AA) (Z) “OWNER” MEANS A PERSON WITH AN OWNERSHIP INTERES T IN A 25
CANNABIS LICENSEE . 26
(BB) (AA) “OWNERSHIP INTEREST ” MEANS A DIRECT OR IN DIRECT EQUITY 27
INTEREST IN A CANNAB IS LICENSEE, INCLUDING IN ITS SHA RES OR STOCK. 28
(BB) “PASSIVE INVESTOR ” MEANS A PERSON OR AN ENTITY THAT: 29
(1) HOLDS AN AGGREGATE O WNERSHIP INTEREST OF LESS THAN 5% 30
IN A CANNABIS LICENS EE; AND 31 HOUSE BILL 556 27
(2) DOES NOT HAVE CONTRO L OF THE CANNABIS LI CENSEE. 1
(CC) “PRINCIPAL OFFICER ” MEANS A BOARD MEMBER , A PRESIDENT, A VICE 2
PRESIDENT, A SECRETARY, A TREASURER, A PARTNER, AN OFFICER, OR A MANAGING 3
MEMBER, OR ANY OTHER INDIVID UAL WITH A PROFIT SH ARING, FINANCIAL 4
INTEREST, OR REVENUE SHARING A RRANGEMENT , INCLUDING AN INDIVIDUAL WITH 5
THE AUTHORITY TO CON TROL A CANNABIS LICE NSEE. 6
(DD) “PROCESSOR” MEANS AN ENTITY LICE NSED UNDER THIS TITL E THAT: 7
(1) TRANSFORMS CANNABIS INTO ANOTHER PRODUCT OR AN 8
EXTRACT AND PACKAGES AND LABELS THE CANNA BIS PRODUCT; AND 9
(2) IS AUTHORIZED BY THE DIVISION TO PROVIDE C ANNABIS TO 10
LICENSED DISPENSARIE S AND REGISTERED IND EPENDENT TESTING 11
LABORATORIES . 12
(EE) “QUALIFYING PATIENT ” MEANS AN INDIVIDUAL WHO: 13
(1) HAS BEEN PROVIDED WI TH A WRITTEN CERTIFI CATION BY A 14
CERTIFYING PROVIDER IN ACCORDANCE WITH A BO NA FIDE PROVIDER –PATIENT 15
RELATIONSHIP ; AND 16
(2) IF UNDER THE AGE OF 18 YEARS, HAS A CAREGIVER . 17
(FF) “SOCIAL EQUITY APPLICA NT” MEANS AN APPLICANT F OR A CANNABIS 18
LICENSE OR CANNABIS REGISTRATION THAT : 19
(1) HAS AT LEAST 65% OWNERSHIP AND CONTROL HELD BY ONE OR 20
MORE INDIVIDUALS WHO : 21
(I) HAVE LIVED IN A DISP ROPORTIONATELY IMPAC TED AREA 22
FOR AT LEAST 5 OF THE 10 YEARS IMMEDIATELY PR ECEDING THE SUBMISSI ON OF 23
THE APPLICATION ; OR 24
(II) ATTENDED A PUBLIC SC HOOL IN A DISPROPORT IONATELY 25
IMPACTED AREA FOR AT LEAST 5 YEARS; OR 26
(III) FOR AT LEAST 2 YEARS, ATTENDED A 4–YEAR INSTITUTION 27
OF HIGHER EDUCATION IN THE STATE WHERE AT LEAST 40% OF THE INDIVIDUALS 28
WHO ATTEND THE INSTI TUTION OF HIGHER EDU CATION ARE ELIGIBLE FOR A PELL 29
GRANT; OR 30
28 HOUSE BILL 556
(2) MEETS ANY OTHER CRIT ERIA ESTABLISHED BY THE COMMISSION 1
BASED ON THE RESULTS OF A DISPARITY STUDY . 2
(GG) “STANDARD LICENSE ” MEANS A LICENSE ISSU ED IN ACCORDANCE WIT H 3
§ 36–401 § 36–401(C)(1) OF THIS TITLE. 4
(HH) “TRANSPORTER ” MEANS AN ENTITY REGI STERED UNDER THIS TITLE TO 5
TRANSPORT CANNABIS B ETWEEN CANNABIS LICE NSEES AND REGISTERED 6
INDEPENDENT TESTING LABORATORIES . 7
(II) (1) “USABLE CANNABIS ” MEANS THE DRIED LEAV ES AND FLOWERS 8
OF THE CANNABIS PLAN T. 9
(2) “USABLE CANNABIS ” DOES NOT INCLUDE SEEDLINGS, SEEDS, 10
STEMS, STALKS, OR ROOTS OF THE PLAN T OR THE WEIGHT OF A NY NONCANNABIS 11
INGREDIENTS COMBINED WITH CANNABIS , SUCH AS INGREDIENTS ADDED TO 12
PREPARE A TOPICAL AD MINISTRATION . 13
(JJ) “WRITTEN CERTIFICATION ” MEANS A CERTIFICATIO N THAT: 14
(1) IS ISSUED BY A CERTIFYI NG PROVIDER TO A QUA LIFYING PATIENT 15
WITH WHOM THE PROVID ER HAS A BONA FIDE P ROVIDER–PATIENT RELATIONSHIP ; 16
(2) INCLUDES A WRITTEN S TATEMENT CERTIFYING THAT, IN THE 17
CERTIFYING PROVIDER ’S PROFESSIONAL OPINI ON, AFTER HAVING COMPLET ED AN 18
ASSESSMENT OF THE PA TIENT’S MEDICAL HISTORY AN D CURRENT MEDICAL 19
CONDITION, THE PATIENT HAS A CO NDITION: 20
(I) THAT MEETS THE INCLU SION CRITERIA AND DO ES NOT 21
MEET THE EXCLUSION C RITERIA OF THE CERTI FYING PROVIDER ’S APPLICATION; 22
AND 23
(II) FOR WHICH THE POTENTIAL BENEFITS O F THE MEDICAL 24
USE OF CANNABIS WOUL D LIKELY OUTWEIGH TH E HEALTH RISKS FOR T HE PATIENT; 25
AND 26
(3) MAY INCLUDE A WRITTE N STATEMENT CERTIFYI NG THAT, IN THE 27
CERTIFYING PROVIDER ’S PROFESSIONAL OPINI ON, A 30–DAY SUPPLY OF MEDICA L 28
CANNABIS WOU LD BE INADEQUATE TO MEET THE MEDICAL NEE DS OF THE 29
QUALIFYING PATIENT . 30
SUBTITLE 2. CANNABIS REGULATION AND ENFORCEMENT DIVISION. 31
36–201. 32 HOUSE BILL 556 29
(A) (1) THERE IS A CANNABIS REGULATION AND ENFORCEMENT 1
DIVISION ESTABLISHED WITHIN T HE OFFICE OF THE EXECUTIVE DIRECTOR OF IN 2
THE COMMISSION. 3
(2) THE DIVISION IS AN INDEPE NDENT UNIT THAT FUNC TIONS 4
WITHIN, AND REPORTS DIRECTLY ONLY TO, THE COMMISSION. 5
(B) (1) THERE IS A DIRECTOR OF THE DIVISION. 6
(2) THE GOVERNOR SHALL APPOIN T THE DIRECTOR OF THE 7
DIVISION WITH THE ADVICE AND CO NSENT OF THE SENATE. 8
(3) THE DIRECTOR SERVES AT TH E PLEASURE OF THE GOVERNOR. 9
(C) THE DIRECTOR MUST HAVE TH E TRAINING AND EXPER IENCE, 10
INCLUDING KNOWLEDGE OF THE STATE CANNABIS INDUST RY AND REGULATORY 11
SYSTEM, THAT IS NEEDED TO DIRECT THE WORK OF T HE DIVISION. 12
(D) THE DIVISION MAY EMPLOY OFFICERS AND EMPLOYE ES STAFF AND 13
RETAIN CONTRACTORS AS PROVIDED IN THE STATE BUDG€ 14
(E) THE DIVISION: 15
(1) SHALL BE RESPONSIBLE FOR CARRYING OUT THE REQUIREMENTS 16
AND DUTIES ESTABLISH ED UNDER THIS DIVISION TITLE; AND 17
(2) MAY RECOMMEND CHANGE S TO IMPROVE THE ADM INISTRATION 18
OF THIS DIVISION TITLE RELATING TO THE REGU LATION OF CANNABIS . 19
(F) THE DIVISION SHALL ADMINISTER AND ENFOR CE THIS TITLE. 20
36–202. 21
(A) THE DIVISION SHALL: 22
(1) DEVELOP AND MAINTAIN A SEED–TO–SALE TRACKING SYSTEM 23
THAT TRACKS CANNABIS FROM EITHER THE SEED OR IMMATURE PLANT ST AGE 24
UNTIL THE CANNABIS I S SOLD TO A PATIENT , CAREGIVER, OR CONSUMER; 25
(2) CONDUCT FINANCIAL AN D CRIMINAL BACKGROUN D 26
INVESTIGATIONS OF AN Y PERSON WHO SUBMITS AN APPLICATION FOR A CANNABIS 27
LICENSE OR A CANNABI S LICENSEE, AS REQUIRED UNDER TH IS TITLE; 28
30 HOUSE BILL 556
(3) DEVELOP A PROCESS FO R CONSUMERS TO PURCH ASE CLONES 1
AND SEEDS, SEEDLINGS, STALKS, ROOTS, AND STEMS OF THE CAN NABIS PLANT FOR 2
CULTIVATION IN ACCOR DANCE WITH § 5–601.2 OF THE CRIMINAL LAW ARTICLE; 3
(3) (4) SOLICIT, EVALUATE, AND ISSUE OR DENY AP PLICATIONS 4
FOR CANNABIS LICENSE S AND CANNABIS REGIS TRATIONS, INCLUDING: 5
(I) LICENSES TO OPERATE A CANNABIS BUSINESS IN 6
ACCORDANCE WITH THIS TITLE; AND 7
(II) REGISTRATION FOR IND EPENDENT TESTING 8
LABORATORIES , TRANSPORTERS , SECURITY GUARD COMPA NIES, AND WASTE 9
DISPOSAL COMPANIES ; 10
(4) (5) AWARD OR DENY : 11
(I) A LICENSE TO OPERATE A CANNABIS BUSINESS IN 12
ACCORDANCE WITH THIS TITLE; AND 13
(II) REGISTRATION TO INDE PENDENT TESTING LABO RATORIES, 14
TRANSPORTERS , SECURITY GUARD COMPA NIES, WASTE DISPOSAL COMPA NIES, AND 15
ANY OTHER TYPE OF CA NNABIS BUSINESS AUTH ORIZED BY THE DIVISION; 16
(5) (6) CONDUCT ANNOUNCED AN D UNANNOUNCED INSPEC TIONS 17
OF ANY BUSINESS LICE NSED OR REGISTERED U NDER THIS TITLE TO E NSURE 18
COMPLIANCE WITH THIS TITLE; 19
(6) (7) AFTER A DETERMINATIO N THAT A VIOLATION O F THIS TITLE 20
OR A REGULATION ADOP TED UNDER THIS TITLE HAS OCCURRED, SUSPEND, FINE, 21
RESTRICT, OR REVOKE CANNABIS L ICENSES AND CANNABIS REGISTRATIONS , 22
WHETHER ACTIVE , EXPIRED, OR SURRENDERED , OR IMPOSE ANY OTHER PENALTY 23
AUTHORIZED BY THIS T ITLE OR ANY REGULATI ON ADOPTED UNDER THI S TITLE; 24
(7) (8) (I) GIVE NOTICE AND HOLD A HEARING IN ACCORDA NCE 25
WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE, FOR ANY: 26
1. CONTESTED CANNABIS L ICENSE DENIAL; OR 27
2. VIOLATION OF THIS TI TLE OR ANY REGULATIO N 28
ADOPTED UNDER THIS T ITLE; 29
(II) ADMINISTER OATHS IN A PROCEEDING UNDER THI S 30
SECTION; AND 31
HOUSE BILL 556 31
(III) SUBJECT TO SUBSECTIO N (B)(3) OF THIS SECTION , ALLOW 1
THE PERSON AGAINST W HOM THE ACTION IS CO NTEMPLATED TO BE REP RESENTED 2
AT THE HEARING BY CO UNSEL; 3
(8) (9) ADOPT REGULATIONS NE CESSARY TO CARRY OUT ITS 4
DUTIES UNDER THIS TI TLE; AND 5
(9) (10) PERFORM ANY OTHER PO WER AUTHORIZED OR DU TY 6
REQUIRED UNDER THIS TITLE OR ANY OTHER P ROVISION OF STATE LAW. 7
(B) THE DIVISION MAY: 8
(1) ISSUE A SUBPOENA FOR THE ATTENDANCE OF A WITNESS TO 9
TESTIFY OR THE PRODUCTION OF EV IDENCE IN CONNECTION WITH: 10
(I) ANY DISCIPLINARY ACT ION UNDER THIS TITLE ; OR 11
(II) ANY INVESTIGATION OR PROCEEDING INITIATED FOR AN 12
ALLEGED VIOLATION OF THIS TITLE; 13
(2) DELEGATE THE HEARING AUTHORITY AUTHORIZED UNDER 14
SUBSECTION (A)(7) (A)(8) OF THIS SECTION; AND 15
(3) IF, AFTER DUE NOTICE , THE PERSON AGAINST W HOM A 16
DISCIPLINARY ACTION IS CONTEMPLATED DOES NOT APPEAR AT A HEAR ING, HEAR 17
AND DETERMINE THE MA TTER. 18
36–203. 19
(A) THE DIVISION SHALL: 20
(1) EVALUATE THE REGULAT IONS ADOPTED BY THE NATALIE M. 21
LAPRADE MEDICAL CANNABIS COMMISSION IN TITLE 10, SUBTITLE 62 OF THE 22
CODE OF MARYLAND REGULATIONS; AND 23
(2) ON OR BEFORE JULY 1, 2023, ADOPT EMERGENCY REGU LATIONS 24
TO: 25
(I) CARRY OUT THE LICENS URE REQUIREMENTS SPE CIFIED 26
UNDER THIS TITLE; 27
(II) IMPLEMENT PROCEDURES RELATED TO CANNABIS 28
APPLICATIONS, LICENSES, AND REGISTRATIONS IN ACCORDANCE WITH THIS TITLE; 29
32 HOUSE BILL 556
(III) ASSIST THE COMPTROLLER IN THE CO LLECTION OF TAXES 1
IMPOSED ON THE SALE OF ADULT–USE CANNABIS UNDER § 11–104(K) OF THE TAX – 2
GENERAL ARTICLE; 3
(IV) IMPLEMENT INVENTORY MANAGEMENT AND TRACK ING 4
THAT DOES NOT DIFFER ENTIATE BETWEEN ADUL T–USE OR MEDICAL CANNA BIS OR 5
CANNABIS PRODUCTS BE FORE THE POINT OF SA LE, EXCEPT FOR PRODUCTS 6
ALLOWED BY THE DIVISION FOR SALE ONL Y TO PATIENTS AND CAREG IVERS; AND 7
(V) ESTABLISH OPERATING REQUIREMENTS FOR CAN NABIS 8
LICENSEES, INCLUDING REQUIREMEN TS FOR: 9
1. SECURITY, INCLUDING LIGHTING , PHYSICAL 10
SECURITY, VIDEO, AND ALARM REQUIREMEN TS; 11
2. SAFE AND SECURE DELI VERY, TRANSPORT, AND 12
STORAGE OF CANNABIS ; 13
3. PREVENTING THE SALE OR DIVERSION OF CANN ABIS 14
AND CANNABIS PRODUCT S TO PERSONS UNDER T HE AGE OF 21 YEARS; 15
4. PACKAGING AND LABELI NG OF CANNABIS AND 16
CANNABIS PRODUCTS , INCLUDING CHILD –RESISTANT PACKAGING ; AND 17
5. HEALTH AND SAFETY STA NDARDS GOVERNING THE 18
CULTIVATION, MANUFACTURE , TESTING, AND DISPENSING OF CA NNABIS OR 19
CANNABIS PRODUCTS . 20
(B) THE EMERGENCY REGULAT IONS THAT THE DIVISION IS REQUIRED TO 21
ADOPT UNDER SUBSECTI ON (A) OF THIS SECTION SHAL L: 22
(1) BE SUPPLEMENTAL TO THE MEDICAL CANNABIS REG ULATIONS 23
UNDER TITLE 10, SUBTITLE 62 OF THE CODE OF MARYLAND REGULATIONS; AND 24
(2) NOTWITHSTANDING ANY OTHER LAW, REMAIN IN EFFECT UNT IL 25
THE TAKING EFFECT OF NONEMERGENCY REGULAT IONS ADOPTED UNDER 26
SUBSECTION (C) OF THIS SECTION. 27
(C) (1) ON OR BEFORE JULY 1, 2024, THE DIVISION SHALL ADOPT 28
NONEMERGENCY REGULAT IONS NECESSARY TO CARRY OUT THE PROVISIONS OF 29
THIS TITLE. 30
(2) TO THE EXTENT PRACTIC ABLE, THE DIVISION SHALL ADOPT 31
REGULATIONS : 32 HOUSE BILL 556 33
(I) REQUIRING CANNABIS L ICENSEES TO TRANSITIO N FROM A 1
CASH SYSTEM AND TO U SE TRADITIONAL BANKI NG SERVICES; AND 2
(II) ESTABLISHING TRADE P RACTICE RESTRICTIONS . 3
(D) THE REGULATIONS ADOPT ED BY THE DIVISION UNDER THIS S ECTION 4
SHALL, TO THE EXTENT PRACTI CABLE, REGULATE MEDICAL AND ADULT –USE 5
CANNABIS IN THE SAME MANNER. 6
36–204. 7
(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE DIVISION 8
SHALL ESTABLISH AND MAINTAIN A STATE CANNABIS TESTIN G LABORATORY . 9
(2) (I) ON OR BEFORE JULY 1, 2023, THE MARYLAND 10
DEPARTMENT OF AGRICULTURE OR THE MARYLAND DEPARTMENT OF HEALTH 11
MAY ENTER INTO A MEM ORANDUM OF UNDERSTAN DING WITH THE DIVISION TO 12
TEST CANNABIS AT AN EXISTING STATE–OWNED LABORATORY IF DOING SO WOULD 13
BE A MORE ECONOMIC A ND EFFICIENT ALTERNA TIVE TO THE ESTABLIS HMENT OF A 14
TESTING LABORATORY UNDER PARAGRAPH (1) OF THIS SUBSECTION . 15
(II) IF THE MARYLAND DEPARTMENT OF AGRICULTURE OR 16
THE MARYLAND DEPARTMENT OF HEALTH AND THE DIVISION DETERMINE TH AT 17
CO–LOCATING CANNABIS TE STING AT AN EXISTING STATE–OWNED LABORATORY IS 18
NOT OPERATIO NALLY FEASIBLE , SUFFICIENT FUNDING S HALL BE PROVIDED IN THE 19
ANNUAL BUDGET TO COM PLY WITH PARAGRAPH (1) OF THIS SUBSECTION . 20
(B) THE STATE CANNABIS TESTIN G LABORATORY IS RESP ONSIBLE FOR: 21
(1) DEVELOPING AND MAINT AINING A CANNABIS LA BORATORY 22
REFERENCE LIB RARY THAT CONTAINS C ANNABIS TESTING METH ODOLOGIES IN THE 23
AREAS OF: 24
(I) POTENCY; 25
(II) HOMOGENEITY ; 26
(III) DETECTION AND QUANTI TATION OF CONTAMINAN TS; AND 27
(IV) SOLVENTS; 28
34 HOUSE BILL 556
(2) ESTABLISHING STANDAR D OPERATING PROCEDUR ES FOR 1
SAMPLE COLLECTION , PREPARATION , AND ANALYSIS OF CANN ABIS BY 2
INDEPENDENT TESTING LABORATORIES ; 3
(3) CONDUCTING PROFICIEN CY TESTING OF INDEPE NDENT TESTING 4
LABORATORIES ; 5
(4) REMEDIATING PROBLEMS WITH INDEPENDENT TES TING 6
LABORATORIES ; AND 7
(5) CONDUCTING COMPLIANC E TESTING ON CANNABIS SAMPLES 8
ANALYZED BY INDEPEND ENT TESTING LABORATO RIES; AND 9
(6) IDENTIFYING AND DETE CTING THE PRESENCE A ND PURITY OF 10
CANNABIS, ALCOHOL, AND TOBACCO IN SAMPL ES OR SEIZED CONTRAB AND IN 11
SUPPORT OF THE REGUL ATORY AUTHORITY OF T HE COMMISSION. 12
(C) INDEPENDENT TESTING L ABORATORIES LICENSED UNDER § 36–408 OF 13
THIS TITLE SHALL PRO VIDE MATERIALS FOR T HE CANNABIS LABORATO RY 14
REFERENCE LIBRARY . 15
(D) THE STATE CANNABIS TESTIN G LABORATORY SHALL H OLD MEDICAL 16
AND ADULT–USE CANNABIS TESTING TO THE SAME STANDARDS. 17
36–205. 18
(A) THE DIVISION MAY IMPOSE R EGISTRATION AND OTHE R FEES TO 19
DEFRAY THE COSTS OF : 20
(1) THE OPERATIONS OF TH E DIVISION AND THE COMMISSION; AND 21
(2) ADMINISTERING AND EN FORCING THIS DIVISION TITLE. 22
(B) IF FEES ARE IMPOSED U NDER SUBSECTION (A) OF THIS SECTION , THE 23
DIVISION SHALL DEPOSI T THE FEES COLLECTED IN THE CANNABIS REGULATION 24
AND ENFORCEMENT FUND ESTABLISHED UNDE R § 36–206 OF THIS SUBTITLE. 25
36–206. 26
(A) IN THIS SECTION , “FUND” MEANS THE CANNABIS REGULATION AND 27
ENFORCEMENT FUND. 28
(B) THERE IS A CANNABIS REGULATION AND ENFORCEMENT FUND. 29
HOUSE BILL 556 35
(C) THE PURPOSE OF THE FUND IS TO PROVIDE FU NDS TO COVER THE 1
COSTS OF: 2
(1) THE OPERATION OF THE DIVISION AND THE COMMISSION; AND 3
(2) ADMINISTERING AND EN FORCING THIS DIVISION TITLE. 4
(D) THE COMPTROLLER SHALL ADM INISTER THE FUND AT THE DIRECTION 5
OF THE DIVI€N. 6
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 7
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 8
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY, 9
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 10
(F) THE FUND CONSISTS OF : 11
(1) FEES DISTRIBUTED TO THE FUND UNDER § 36–205 OF THIS 12
SUBTITLE; 13
(2) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–1302.2 OF THE 14
TAX – GENERAL ARTICLE; 15
(3) INTEREST EARNINGS OF THE FUND; AND 16
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 17
THE BENEFIT OF THE FUND, IN ACCORDANCE WITH A NY CONDITIONS ADOPTE D BY 18
THE COMMISSION FOR THE AC CEPTANCE OF DONATION S OR GIFTS TO THE FUND. 19
(G) THE FUND MAY BE USED ONLY FOR CARRYING OU T THIS DIVISION 20
TITLE. 21
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 22
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 23
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 24
THE FUND. 25
(I) THE FUND IS SUBJECT TO AUDIT B Y THE OFFICE OF LEGISLATIVE 26
AUDITS AS PROVIDED FO R IN § 2–1220 OF THE STATE GOVERNMENT ARTICLE. 27
36 HOUSE BILL 556
(J) (1) ON OR BEFORE MARCH 15 EACH YEAR, THE COMPTROLLER 1
SHALL PUBLISH ON ITS WEBSITE A DETAILED R EPORT ON REVENUE DIS TRIBUTED 2
TO AND EXPENDITURES FROM TH E FUND. 3
(2) THE REPORT SHALL ALSO BE SUBMITTED TO THE GENERAL 4
ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 5
SUBTITLE 3. MEDICAL USE OF CANNABIS. 6
36–301. 7
(A) THE DIVISION SHALL REGIST ER AS A CERTIFYING P ROVIDER AN 8
INDIVIDUAL WHO : 9
(1) MEETS THE REQUIREMEN TS OF THIS SUBTITLE ; AND 10
(2) SUBMITS THE REQUIRED APPLICATION TO THE DIVISION. 11
(B) TO BE REGISTERED AS A CERTIFYING PROVIDER , A PROVIDER SHALL 12
SUBMIT AN APPLICATIO N TO THE DIVISION THAT INCLUDE S: 13
(1) THE REASONS FOR INCL UDING A PATIENT UNDE R THE CARE OF 14
THE PROVIDER FOR THE PURPOSES OF THIS SUB TITLE, INCLUDING THE PATIEN T’S 15
QUALIFYING MEDICAL C ONDITIONS; 16
(2) AN ATTESTATION THAT A STANDARD PATIENT E VALUATION WILL 17
BE COMPLETED , INCLUDING A HISTORY , A PHYSICAL EXAMINATI ON, A REVIEW OF 18
SYMPTOMS, AND OTHER RELEVANT M EDICAL INFORMATION ; AND 19
(3) THE PROVIDER ’S PLAN FOR THE ONGOI NG ASSESSMENT AND 20
FOLLOW–UP CARE OF A PATIENT AND FOR COLLECTING A ND ANALYZING DATA . 21
(C) THE DIVISION IS ENCOURAGE D TO APPROVE PROVIDER APPLIC ATIONS 22
FOR THE FOLLOWING : 23
(1) A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL CONDITION 24
THAT RESULTS IN A PA TIENT BEING ADMITTED INTO HOSPICE OR RECE IVING 25
PALLIATIVE CARE ; 26
(2) A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL CONDITION 27
OR THE TREATMENT OF A C HRONIC OR DEBILITATI NG DISEASE OR MEDICA L 28
CONDITION THAT PRODU CES: 29
(I) CACHEXIA, ANOREXIA, OR WASTING SYNDROME ; 30 HOUSE BILL 556 37
(II) SEVERE OR CHRONIC PA IN; 1
(III) SEVERE NAUSEA ; 2
(IV) SEIZURES; OR 3
(V) SEVERE OR PERSISTENT MUSCLE SPASMS; 4
(3) GLAUCOMA ; OR 5
(4) POST–TRAUMATIC STRESS DIS ORDER. 6
(D) THE DIVISION MAY NOT LIMI T TREATMENT OF A PAR TICULAR MEDICAL 7
CONDITION TO ONE CLA SS OF P€IDERS. 8
(E) THE DIVISION MAY APPROVE APPLICATIONS THAT IN CLUDE ANY OTHER 9
CONDITION THAT IS SE VERE AND FOR WHICH O THER MEDICAL TREATME NTS HAVE 10
BEEN INEFFECTIVE IF THE SYMPTOMS REASONA BLY CAN BE EXPECTED TO BE 11
RELIEVED BY THE MEDI CAL USE OF CANNABIS . 12
(F) A CERTIFYING PROVIDER OR THE SPOUSE OF A C ERTIFYING PROVIDER 13
MAY NOT: 14
(1) RECEIVE ANY GIFT FROM A CANNABIS LICE NSEE; 15
(2) HOLD AN OWNERSHIP IN TEREST IN A CANNABIS LICENSEE OR A 16
BUSINESS THAT CONTRO LS A CANNABIS LICENS EE; OR 17
(3) RECEIVE ANY COMPENSA TION FROM A CANNABIS LICENSEE. 18
(G) A CERTIFYING PROVIDER SHALL ISSUE EACH WRI TTEN CERTIFICATION 19
IN THE FORM REQUIRED BY THE DIVISION. 20
(H) A CERTIFYING PROVIDER MAY DISCUSS MEDICAL CANNABIS WITH A 21
PATIENT. 22
(I) (1) A CERTIFYING PROVIDER REGISTRATION IS VALI D FOR 2 YEARS. 23
(2) THE DIVISION SHALL GRANT OR DENY A RENEWAL OF A 24
REGISTRATION BASED O N THE PROVIDER ’S PERFORMANCE IN COM PLYING WITH 25
REGULATIONS ADOPTED BY THE DIVISION. 26
36–302. 27
38 HOUSE BILL 556
(A) A QUALIFYING PATIENT O R CAREGIVER MAY OBTA IN MEDICAL 1
CANNABIS FROM A DISP ENSARY LICENSED BY T HE DIVISION. 2
(B) (1) A QUALIFYING PATIENT W HO IS AT LEAST 21 YEARS OLD MAY NOT 3
CULTIVATE MORE THAN FOUR CANNABIS PLANTS . 4
(2) IF TWO OR MORE QUALIF YING PATIENTS WHO AR E AT LEAST 21 5
YEARS OLD RESIDE AT THE SAME RESIDENCE , NOT MORE THAN FOUR C ANNABIS 6
PLANTS MAY BE CULTIVAT ED AT THAT RESIDENCE . 7
(3) EXCEPT AS PROVIDED IN PARAGRAPHS (1) AND (2) OF THIS 8
SUBSECTION, A QUALIFYING PATIENT SHALL COMPLY WITH TH E CANNABIS 9
CULTIVATION REQUIREM ENTS ESTABLISHED UND ER § 5–601.2 OF THE CRIMINAL 10
LAW ARTICLE. 11
(C) A QUALIFYING PATIENT U NDER THE AGE OF 18 YEARS MAY OBTAIN 12
MEDICAL CANNABIS ONL Y THROUGH: 13
(1) THE QUALIFYING PATIE NT’S CAREGIVER; OR 14
(2) ANY DESIGNATED SCHOO L PERSONNEL AUTHORIZ ED TO 15
ADMINISTER MEDICAL C ANNABIS TO A STUDENT IN ACCORDANCE WITH T HE 16
GUIDELINES ESTABLISHED UNDER § 7–446 OF THE EDUCATION ARTICLE. 17
(D) A CAREGIVER MAY SERVE NOT MORE THAN FIVE Q UALIFYING PATIENTS 18
€ANY TIME. 19
(E) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 20
QUALIFYING PATIENT M AY HAVE NOT MORE THA N TWO CAREGIVERS. 21
(2) A QUALIFYING PATIENT U NDER THE AGE OF 18 YEARS MAY HAVE 22
NOT MORE THAN FOUR C AREGIVERS. 23
(F) A SALE OF CANNABIS OR CANNABIS PRODUCTS TO A QUALIFYING 24
PATIENT IS NOT SUBJE CT TO TAXES IMPOSED ON THE SALE OF CANNA BIS OR 25
CANNABIS PRODUCTS UN DER § 11–104(K) OF THE TAX – GENERAL ARTICLE. 26
(G) A QUALIFYING PATIENT M AY POSSESS UP TO : 27
(1) 120 GRAMS OF USABLE CANN ABIS; OR 28
(2) 36 GRAMS OF DELTA –9–TETRAHYDROCANNABINOL (THC) IN THE 29
CASE OF A CANNABIS –INFUSED PRODUCT . 30
HOUSE BILL 556 39
(H) DESIGNATED SCHOOL P ERSONNEL DESCRIBED I N SUBSECTION (C)(2) 1
OF THIS SECTION: 2
(1) MAY ADMINISTER TO A STUDENT ONLY MEDICAL CANNABIS: 3
(I) THAT IS OBTAINED THR OUGH THE STUDENT ’S CAREGIVER; 4
AND 5
(II) IN ACCORDANCE WITH D OSING, TIMING, AND DELIVERY 6
ROUTE INSTRUCTIONS A S PROVIDED BY THE CERT IFYING PROVIDER ’S WRITTEN 7
INSTRUCTIONS ; AND 8
(2) ARE NOT REQUIRED TO REGISTER WITH THE COMMISSION UNDER 9
THIS SUBTITLE. 10
(I) A CAREGIVER MAY ADMINI STER MEDICAL CANNABI S TO A STUDENT 11
WHO IS A QUALIFYING PATIENT OF THE CAREG IVER ON SCHO OL PROPERTY , DURING 12
SCHOOL–SPONSORED ACTIVITIES , AND WHILE ON A SCHOO L BUS. 13
SUBTITLE 4. CANNABIS LICENSING. 14
36–401. 15
(A) (1) A PERSON MUST OBTAIN A CANNABIS LICENSE ISS UED BY THE 16
DIVISION TO OPERATE A CANNABIS BUSINESS . 17
(2) A CANNABIS LICENSE ISS UED UNDER THIS SUBTITLE : 18
(I) AUTHORIZES THE HOLDE R OF THE LICENSE TO OPERATE A 19
MEDICAL AND ADULT –USE CANNABIS BUSINES S; 20
(II) IS VALID FOR 5 YEARS ON INITIAL LIC ENSURE AND 5 YEARS 21
ON RENEWAL ; AND 22
(III) MAY BE TRANSFERRED O NLY IN ACCORDANCE WI TH 23
SUBTITLE 5 OF THIS TITLE. 24
(B) (1) THE DIVISION SHALL: 25
(I) ISSUE STANDARD LICEN SES, MICRO LICENSES , INCUBATOR 26
SPACE LICENSES , AND ON–SITE CONSUMPTION LIC ENSES IN ACCORDANCE WITH 27
THIS TITLE; 28
40 HOUSE BILL 556
(II) ON OR BEFORE JULY 1, 2023, CONVERT LICENSES THA T 1
WERE ISSUED TO MEDICAL CA NNABIS GROWERS , PROCESSORS , AND DISPENSARIES , 2
INCLUDING THOSE BUSI NESSES PREAPPROVED F OR LICENSURE , TO LICENSES TO 3
OPERATE A MEDICAL AN D ADULT–USE CANNABIS BUSINES S IF: 4
1. A CONVERSION FEE IS PAID IN ACCORDANCE W ITH § 5
36–403 OF THIS SUBTITLE; AND 6
2. THE BUSINESS COMPLIE S WITH THE OWNERSHIP 7
RESTRICTIONS €DER SUBSECTION (E) OF THIS SECTION; 8
(III) SET PRODUCTION , PROCESSING, SALES, AND OTHER 9
LIMITATIONS AND REQU IREMENTS FOR ALL LIC ENSE TYPES; 10
(IV) ISSUE DISPENSARY LIC ENSES IN A MANNER THAT 11
ENCOURAGES A BALANCE D GEOGRAPHIC DISTRIB UTION BASED ON POPUL ATION 12
AND MARKET DEMAND WI THIN A SPECIFIC COUN TY, AS WELL AS 13
CROSS–JURISDICTIONAL MARKE T DEMAND; 14
(V) CONSIDER MARKET DEMA ND IN THE ISSUANCE O F ALL 15
LICENSE TYPES; AND 16
(VI) ADOPT REGULATIONS RE QUIRING LICENSEES WH OSE 17
LICENSES WERE CONVER TED BY THE DIVISION UNDER ITEM (II) OF THIS 18
PARAGRAPH TO RESERVE A SPECIFIED AMOUNT O F CANNABIS FOR SOCIA L EQUITY 19
LICENSEES. 20
(2) THE DIVISION MAY: 21
(I) INSPECT A CANNABIS L ICENSEE TO ENSURE COMPLIANCE 22
WITH THIS TITLE AND THE REGULATIONS ADOP TED UNDER THIS TITLE ; 23
(II) REVOKE A CANNABIS LI CENSE IF GOOD FAITH EFFORTS 24
HAVE NOT BEEN MADE B Y THE CANNABIS LICEN SEE TO ESTABLISH A C ANNABIS 25
BUSINESS WITHIN 18 MONTHS AFTER THE LIC ENSE WAS AWARDED; 26
(III) IMPOSE PENALTIES OR RESCIND THE LICENSE OF A 27
CANNABIS LICENSEE TH AT DOES NOT MEET THE STANDARDS FOR LICENS URE 28
ESTABLISHED UNDER TH IS TITLE OR REGULATI ONS ADOPTED UNDER TH IS TITLE; 29
AND 30
(IV) CONDITIONALLY AWARD CANNABIS LICENSES . 31
HOUSE BILL 556 41
(C) (1) A STANDARD LICENSE AUT HORIZES THE HOLDER O F THE 1
LICENSE: 2
(I) FOR GROWERS , TO OPERATE MORE THAN 10,000 SQUARE 3
FEET, BUT NOT MORE THAN 300,000 SQUARE FEET , OF INDOOR CANOPY OR ITS 4
EQUIVALENT, AS CALCULATED BY THE DIVISION; 5
(II) FOR PROCESSORS , TO PROCESS MORE THAN 1,000 POUNDS 6
OF CANNABIS PER YEAR , AS CALCULATED BY THE DIVISION; AND 7
(III) FOR DISPENSARIES , TO OPERATE A STORE A T A PHYSICAL 8
LOCATION THAT SELLS CANNABIS OR CANNABIS PRODUCTS. 9
(2) A MICRO LICENSE AUTHOR IZES THE HOLDER OF T HE LICENSE: 10
(I) FOR GROWERS , TO OPERATE NOT MORE THAN 10,000 11
SQUARE FEET OF INDOO R CANOPY OR ITS EQUI VALENT, AS CALCULATED BY THE 12
DIVISION; 13
(II) FOR PROCESSORS , TO PROCESS NOT MORE THAN 1,000 14
POUNDS OF CANNABIS P ER YEAR, AS CALCULATED BY THE DIVISION; AND 15
(III) FOR DISPENSARIES , TO OPERATE A DELIVER Y SERVICE 16
THAT SELLS CANNABIS OR CANNABIS PRODUCTS WITHOUT A PHYSICAL 17
STOREFRONT , PROVIDED THAT THE LI CENSEE EMPLOYS NOT M ORE THAN 10 18
EMPLOYEES. 19
(3) AN INCUBATOR SPACE LI CENSE AUTHORIZES THE HOLDER OF 20
THE LICENSE TO OPERA TE A FACILITY WITHIN WHICH A MICRO LICENS EE MAY 21
OPERATE IN ACCORDANC E WITH § 36–406 OF THIS SUBTITLE. 22
(4) AN ON–SITE CONSUMPTION LIC ENSE AUTHORIZES THE HOLDER 23
OF THE LICENSE TO OP ERATE A FACILITY IN WHICH INDIVIDUALS CA N SMOKE, VAPE, 24
OR CONSUME CANNABIS IN ACCORDANCE WITH § 36–407 OF THIS SUBTITLE. 25
(D) THE DIVISION MAY NOT ISSU E MORE THAN THE FOLL OWING NUMBER 26
OF LICENSES PER TYPE , INCLUDING LICENSES C ONVERTED UNDER SUBSE CTION 27
(B)(1)(II) OF THIS SECTION: 28
(1) FOR STANDARD LICENSE S: 29
(I) 75 GROWER LICENSES ; 30
(II) 100 PROCESSOR LICENSES ; AND 31 42 HOUSE BILL 556
(III) 300 DISPENSARY LICENSES ; 1
(2) FOR MICRO LICENSES : 2
(I) 100 GROWER LICENSES ; 3
(II) 100 PROCESSOR LICENSES ; AND 4
(III) 200 DISPENSARY LICENSES ; 5
(3) FOR INCUBATOR SPACE LICENSES, 10 LICENSES; AND 6
(4) FOR ON–SITE CONSUMPTION LIC €ES, 50 LICENSES. 7
(E) (1) THIS SUBSECTION APPLI ES TO ALL LICENSES , INCLUDING 8
LICENSES CONVERTED U NDER SUBSECTION (B)(1)(II) OF THIS SECTION. 9
(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , A PERSON 10
MAY HAVE AN OWNERSHI P INTEREST IN OR CON TROL OF, INCLUDING THE POWER TO 11
MANAGE AND OPERATE , ONLY: 12
(I) FOR STANDARD LICENSE S AND MICRO LICENSES : 13
1. ONE GROWER LICENSEE ; 14
2. ONE PROCESSOR LICENS EE; AND 15
3. NOT MORE THAN TWO DISPENSARY LICENSEES ; 16
(II) FOR INCUBATOR SPACE LICENSES, NOT MORE THAN TWO 17
LICENSEES; AND 18
(III) FOR ON–SITE CONSUMPTION LIC ENSES, NOT MORE THAN 19
TWO LICENSEES . 20
(3) (I) A PERSON WHO OWNS OR C ONTROLS AN INCUBATOR SPACE 21
LICENSEE OR AN ON –SITE CONSUM PTION LICENSEE MAY N OT OWN OR CONTROL AN Y 22
OTHER CANNABIS LICEN SEE. 23
(II) THE DIVISION SHALL ADOPT REGULATIONS LIMITING A 24
PERSON OR FUND FROM ACQUIRING A NONMAJOR ITY OWNERSHIP INTERE ST IN 25
MULTIPLE CANNABIS BU SINESSES BEYOND THE LIMITATIONS ESTABLIS HED UNDER 26
THIS SUBSECTION . 27
HOUSE BILL 556 43
(4) THE RESTRICTIONS IN P ARAGRAPH (2) OF THIS SUBSECTION D O 1
NOT APPLY TO A PERSO N OR AN ENTITY WHO H OLDS AN OWNERSHIP IN TEREST ONLY 2
AS A PASSIVE INVESTO R. 3
(F) (1) THE HOLDER OF A CANNA BIS LICENSE MAY NOT SURRENDER THE 4
LICENSE AND APPLY FOR A NEW LICE NSE IN THE SAME OR A SIMILAR CATEGORY . 5
(2) THE LIMITATION UNDER PARAGRAPH (1) OF THIS SUBSECTION 6
APPLIES TO: 7
(I) AFFILIATES, HOLDING COMPANIES , PARENT COMPANIES , 8
OR OTHER RELATED ENT ITIES; 9
(II) INDIVIDUALS AND FIRM S WITH IDENTICAL OR 10
SUBSTANTIALLY IDENTI CAL BUSINESS OR ECON OMIC INTERESTS ; 11
(III) PERSONS WITH COMMON INVESTMENTS ; AND 12
(IV) FIRMS THAT ARE ECONO MICALLY DEPENDENT ON EACH 13
OTHER THROUGH CONTRA CTUAL OR OTHER RELAT IONSHIPS. 14
(G) A LICENSE ISSUED UNDER THIS TITLE: 15
(1) IS NOT PROPERTY AND DOES NOT CONFER PROP ERTY RIGHTS; 16
AND 17
(2) IS SUBJECT TO: 18
(I) SUSPENSION, REVOCATION , AND RESTRICTIONS 19
AUTHORIZED BY LAW ; AND 20
(II) REGULATIONS AUTHORIZ ED UNDER THIS ARTICL E. 21
(H) (1) ON AND AFTER JULY 1, 2023, THE HOLDER OF A LICENSE ISSUED 22
BY THE NATALIE M. LAPRADE MEDICAL CANNABIS COMMISSION WHO DOES N OT 23
CONVERT THE LICENSE : 24
(I) MAY NOT: 25
1. OPERATE UNDER THE LI CENSE; OR 26
2. RENEW THE LICENSE ; BUT 27
(II) MAY CONTINUE TO HOLD THE LICENSE FOR RESA LE TO 28
ANOTHER PERSON FOR C ONVERSION UNDER THIS SUBTITLE. 29 44 HOUSE BILL 556
(2) THE PURCHASER OF A LI CENSE SOLD BY A LICE NSE HOLDER WHO 1
DOES NOT CONVERT A L ICENSE UNDER PARAGRA PH (1) OF THIS SUBSECTION I S 2
RESPONSIBLE FOR PAYI NG THE ONE–TIME CONVERSION FEE UNDER § 36–403 OF 3
THIS SUBTITLE. 4
36–402. 5
(A) IT IS THE INTENT OF T HE GENERAL ASSEMBLY TO PRESERVE 6
PRODUCTION AVAILABIL ITY FOR NEW ADULT –USE CANNABIS CULTIVA TION 7
LICENSES ISSUED UNDE R THIS SUBTITLE. 8
(B) (1) IF THE LICENSE OF A C ANNABIS LICENSEE IS CONVERTED BY THE 9
DIVISION UNDER § 36–401(B)(1)(II) OF THIS SUBTITLE , THE CANNABIS LICENSE E 10
SHALL: 11
(I) IF THE LICENSEE IS A GROWER, ADHERE TO THE EXPANS ION 12
LIMITATIONS SPECIFIE D UNDER PARAGRAPH (2) OF THIS SUBSECTION ; AND 13
(II) PAY THE CONVERSION F EE REQUIRED UNDER § 36–403 OF 14
THIS SUBTITLE. 15
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 16
PARAGRAPH AND SUBJECT TO SUBPA RAGRAPH (III) OF THIS PARAGRAPH , ON OR 17
BEFORE JANUARY 1, 2026, AN OPERATIONAL BUSIN ESS THAT HOLDS A GRO WER 18
LICENSE ISSUED BEFOR E OCTOBER 1, 2022, MAY EXPAND THE CANOP Y OF ITS 19
OPERATIONS AS IT EXI STED ON OCTOBER 1, 2022, AND BASED ON FACILIT Y SQUARE 20
FOOTAGE OF INDOOR CA NOPY SPACE OR ITS EQ UIVALENT, AS CALCULATED BY THE 21
DIVISION IN ACCORDANC E WITH SUBSECTION (D) OF THIS SECTION , ONLY AS 22
FOLLOWS: 23
1. IF THE CANOPY IS UND ER 25,000 SQUARE FEET , TO 24
25,000 SQUARE FEET OR BY 25%, WHICHEVER IS GREATER ; 25
2. IF THE CANOPY IS AT OR ABOVE 25,000 SQUARE FEET, 26
BY 25%; OR 27
3. IF THE CANNABIS LICE NSEE HAS A SQUARE FO OTAGE 28
EXPANSION THAT WAS P REAPPROVE D BEFORE OCTOBER 1, 2022, THE 29
PREAPPROVED EXPANSIO N OR 25%, WHICHEVER IS GREATER . 30
(II) IF THE DIVISION AND AN OPERA TIONAL BUSINESS 31
DESCRIBED UNDER SUBP ARAGRAPH (I) OF THIS PARAGRAPH AR E UNABLE TO AGREE 32
AS TO THE SQUARE FOO TAGE OF THE CANOPY E XPANSION O F THE LICENSEE ’S 33 HOUSE BILL 556 45
OPERATIONS AUTHORIZE D UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH , THE 1
SQUARE FOOTAGE OF TH E CANOPY EXPANSION S HALL BE CALCULATED B ASED ON 2
THE LICENSEE’S AVERAGE CANNABIS P RODUCTION IN CALENDA R YEARS 2021 AND 3
2022. 4
(III) AN OPERATIONAL BU SINESS DESCRIBED UND ER 5
SUBPARAGRAPH (I) OF THIS PARAGRAPH MA Y BEGIN TO EXPAND IT S CANOPY OF 6
OPERATIONS: 7
1. BY NOT MORE THAN 50% OF THE TOTAL SQUARE 8
FOOTAGE AUTHORIZED U NDER SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH ON 9
OR AFTER JANUARY 1, 2024; AND 10
2. FOR THE REMAINING TO TAL SQUARE FOOTAGE 11
AUTHORIZED UNDER SUB PARAGRAPH (I) OR (II) OF THIS PARAGRAPH ON OR AFTER 12
MAY 1, 2024. 13
(IV) A GROWER LICENSEE MAY NOT OPERATE AN INDOO R 14
CANOPY THAT EXCEEDS 300,000 SQUARE FEET OR ITS E QUIVALENT, AS 15
CALCULATED BY THE DIVISION IN ACCORDANC E WITH SUBSECTION (D) OF THIS 16
SECTION, IF THE GROWER LICENS EE: 17
1. HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE 18
BEFORE OCTOBER 1, 2022; AND 19
2. WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022. 20
(C) A BUSINESS THAT IS ISS UED A NEW CANNABIS LICENSE UNDER § 36–401 21
OF THIS SUBTITLE MAY NOT OPERATE AN INDOO R CANOPY THAT EXCEED S 300,000 22
SQUARE FEET FOR INDO OR CANOPIES OR ITS E QUIVALENT, AS CALCULATED BY THE 23
DIVISION. 24
(D) (1) (I) THIS PARAGRAPH APPLIE S TO ALL LICENSED GR OWERS. 25
(II) A LICENSED GROWER SHAL L ACCURATELY CALCULA TE AND 26
REPORT ANNUALLY TO THE DIVISION ITS FLOWERIN G CANNABIS PLANT CAN OPY 27
AREA. 28
(III) THE CANOPY AREA IS MEASURED USI NG THE OUTSIDE 29
BOUNDARIES OF ANY AR EA THAT INCLUDES FLO WERING CANNABIS PLAN TS AND ALL 30
OF THE SPACE WITHIN THE BOUNDARIES . 31
(IV) FOR THE PURPOSE OF ME ASURING CANOPY , 1 SQUARE 32
FOOT OF INDOOR CANOP Y IS EQUAL TO 4 SQUARE FEET OF OUTDO OR CANOPY. 33 46 HOUSE BILL 556
(V) THE MAXIMUM AMOUNT OF SPACE FOR CANNABIS 1
PRODUCTION MAY NOT E XCEED THE CANOPY AUT HORIZED UND ER THIS SECTION. 2
(VI) IF THE AMOUNT OF SQUA RE FEET OF PRODUCTIO N FOR A 3
LICENSED GROWER EXCE EDS THE CANOPY AUTHO RIZED UNDER THIS SEC TION AND 4
§ 36–401 OF THIS SUBTITLE, THE COMMISSION MAY : 5
1. REDUCE THE CANOPY OF THE LICENSED GROWER BY 6
THE SAME PERC ENTAGE AS IT EXCEEDS THE AUTHORIZED CANOP Y; AND 7
2. SEIZE, DESTROY, CONFISCATE, OR PLACE AN 8
ADMINISTRATIVE HOLD ON ANY FLOWERING CAN NABIS PLANTS PRODUCE D IN 9
EXCESS OF THE CANOPY . 10
(2) THE MAXIMUM AMOUNT OF CANOPY FOR AN OPERAT IONAL 11
BUSINESS THAT HOLDS A LICENSE ISSUED BEF ORE OCTOBER 1, 2022, SHALL BE 12
CALCULATED BASED ON THE MAXIMUM CANOPY O F THE LICENSEE AS 13
SELF–REPORTED BY THE LICE NSEE AND RECORDED BY THE DIVISION NATALIE M. 14
LAPRADE MEDICAL CANNABIS COMMISSION ON OR BEFORE DECEMBER 1, 2022. 15
(E) (1) ON OR BEFORE JULY 1, 2024, THE DIVISION SHALL ADOPT 16
MINIMUM STANDARDS FO R LICENSED GROWERS T O PROTECT THE RIGHTS OF THE 17
GROWERS AND EMPLOYEE S CONCERNING GRIEVAN CES, LABOR DISPUTES , WAGES, 18
RATES OF PAY, HOURS, OR OTHER TERMS OR CO NDITIONS OF EMPLOYME NT. 19
(2) THE STANDARDS SHALL , AT A MINIMUM , PROTECT THE STATE’S 20
INTERESTS BY PROHIBI TING A LABOR ORGANIZ ATION FROM ENGAGING IN 21
PICKETING, WORK STOPPAGES , BOYCOTTS, OR ANY OTHER ECONOMI C 22
INTERFERENCE WITH THE OPERA TION OF THE LICENSED GROWER. 23
(3) AS A CONDITION OF LIC ENSURE, THE LICENSED GROWER SHALL: 24
(I) COMPLY WITH THE STAN DARDS ADOPTED UNDER 25
PARAGRAPH (1) OF THIS SUBSECTION ; AND 26
(II) NEGOTIATE IN GOOD FA ITH WITH EMPLOYEES A ND ANY 27
LEGITIMATE LABOR ORG ANIZATION RECOGNIZED BY THE DIVISION. 28
36–403. 29
(A) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT HOLDS A 30
CANNABIS LICENSE AND WAS PHYSICALLY AND A CTIVELY ENGAGED IN T HE 31
CULTIVATION OR PROCE SSING OF MEDICAL CAN NABIS BEFORE OCTOBER 1, 2022. 32 HOUSE BILL 556 47
(2) EACH SUBJECT TO SUBSECTION (F) OF THIS SECTION , EACH 1
GROWER OR PROCESSOR SHALL PAY THE FOLLOW ING ONE–TIME CONVERSION FEE 2
BASED ON THE TOTAL G ROSS REVENUE OF THE GROWER OR PROCESSOR IN 2022: 3
(I) $100,000 IF THE GROSS REVENUE WAS LESS THAN 4
$1,000,000; 5
(II) $500,000 IF THE GROSS REVENUE WAS AT LEAST 6
$1,000,000, BUT NOT MORE THAN $5,000,000; 7
(III) $1,000,000 IF THE GROSS REVENUE WAS MORE THAN 8
$5,000,000, BUT NOT MORE THAN $10,000,000; 9
(IV) $1,500,000 IF THE GROSS REVENUE WAS MORE THAN 10
$10,000,000, BUT NOT MORE THAN $15,000,000; 11
(V) $2,000,000 IF THE GROSS REVENUE WAS MORE THAN 12
$15,000,000, BUT NOT MORE THAN $20,000,000; OR 13
(VI) $2,500,000 IF THE GROSS REVENUE WAS MORE THAN 14
$20,000,000. 15
(3) IF A BUSINESS HOLDS A GROWER AND PROCESSOR LICENSE, THE 16
FEE SHALL BE BASED O N TOTAL GROSS REVENU E FROM BOTH LICENSE TYPES. 17
(B) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT HOLDS A 18
CANNABIS LICENSE AND WAS PHYSICALLY AND A CTIVELY ENGAGED IN T HE 19
DISPENSING OF MEDICA L CANNABIS BEFORE OCTOBER 1, 2022. 20
(2) EACH SUBJECT TO SUBSECTION (F) OF THIS SECTION , EACH 21
DISPENSARY SHALL PAY THE FOLLOWING ONE –TIME CONVERSION FEE BASED ON 22
THE GROSS REVENUE OF THE DISPENSARY IN 2022: 23
(I) $100,000 IF THE GROSS REVENUE WAS LESS THAN 24
$1,000,000; 25
(II) $250,000 IF THE GROSS REVENUE WAS AT LEAST 26
$1,000,000, BUT NOT MORE THAN $5,000,000; 27
(III) $500,000 IF THE GROSS REVENUE WAS MORE THAN 28
$5,000,000, BUT NOT MORE THAN $10,000,000; 29
48 HOUSE BILL 556
(IV) $1,000,000 IF THE GROSS REVENUE WAS MORE THAN 1
$10,000,000, BUT NOT MORE THAN $15,000,000; 2
(V) $1,500,000 IF THE GROSS REVENUE WAS MORE THAN 3
$15,000,000, BUT NOT MORE THAN $20,000,000; OR 4
(VI) $2,000,000 IF THE GROSS REVENUE WAS MORE THAN 5
$20,000,000. 6
(C) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINESS THAT : 7
(I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE 8
OCTOBER 1, 2022; AND 9
(II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022. 10
(2) A SUBJECT TO SUBSECTION (F) OF THIS SECTION, A GROWER OR 11
PROCESSOR SHALL PAY A ONE–TIME CONVERSION FEE OF $50,000. 12
(3) A SUBJECT TO SUBSECTION (F) OF THIS SECTION, A DISPENSARY 13
SHALL PAY A ONE –TIME CONVERSION FEE OF $25,000. 14
(D) (1) THIS SUBSECTION APPLI ES ONLY TO AN APPLIC ANT APPLYING 15
FOR A CANNABIS LICEN SE UNDER § 36–404 OF THIS SUBTITLE. 16
(2) AN APPLICANT FOR A ST ANDARD LICENSE , AN INCUBATOR SPACE 17
LICENSE, OR AN ON–SITE CONSUMPTION LIC ENSE SHALL PAY AN AP PLICATION FEE 18
OF $5,000. 19
(3) AN APPLICANT FOR A MI CRO LICENSE SHALL PA Y AN 20
APPLICATION FEE OF $1,000. 21
(E) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE DIVISION 22
SHALL ESTABLISH RENE WAL FEES FOR ALL CAN NABIS LICENSES. 23
(2) THE RENEWAL FEES ESTA BLISHED UNDER PARAGR APH (1) OF 24
THIS SUBSECTION MAY NOT EXCEED 10% OF THE CANNABIS LICE NSEE’S ANNUAL 25
GROSS REVENUE . 26
(F) (1) THE ONE–TIME CONVERSION FEES UNDE R THIS SECTION: 27
(I) MAY BE PAID IN SEPAR ATE INSTALLMENTS ; AND 28
(II) SHALL BE PAID IN FUL L ON OR BEFORE JANUARY 1, 2025. 29
HOUSE BILL 556 49
(2) THE AMOUNT OF ANY REN EWAL FEE PAID BY A B USINESS FOR 1
FISCAL YEAR 2023 TO THE NATALIE M. LAPRADE MEDICAL CANNABIS 2
COMMISSION SHALL BE C REDITED AGAINST THE ONE–TIME CONVERSION FEE 3
ASSESSED UNDER THIS SECTION. 4
(G) ALL FEES COLLECTED UN DER THIS SECTION SHA LL BE PAID TO THE 5
DIVISION. 6
36–404. 7
(A) (1) ON OR BEFORE JANUARY 1, 2024, THE DIVISION SHALL BEGIN 8
ISSUING FIRST ROUND LICENSES IN ACCORDAN CE WITH SUBSECTION (D) OF THIS 9
SECTION. 10
(2) ON OR AFTER MAY 1, 2024, THE DIVISION SHALL BEGIN ISSUING 11
SECOND ROUND LICENSE S IN ACCORDANCE WITH SUBSECTIONS (E) OR (F) OF THIS 12
SECTION. 13
(3) SUBJECT TO PARAGRAPHS (1) AND (2) OF THIS SUBSECTION , THE 14
DIVISION MAY ISSUE LI CENSES IN ACCORDANCE WITH SUBSECTION (G) OF THIS 15
SECTION. 16
(B) (1) THE DIVISION SHALL: 17
(I) CONDUCT EXTENSIVE OU TREACH TO SMALL , MINORITY, 18
AND WOMEN BUSINESS OW NERS AND ENTREPRENEU RS WHO MAY HAVE AN I NTEREST 19
IN APPLYING FOR A CA NNABIS LICENSE BEFOR E ACCEPTING AND PROC ESSING 20
CANNABIS LICENSE APP LICATIONS; 21
(II) CONNECT POTENTIAL SO CIAL EQUITY APPLICAN TS WITH 22
THE OFFICE OF SOCIAL EQUITY; 23
(III) ACCEPT AND PROCESS A PPLICATIONS FOR LICE NSES: 24
1. IN RESPONSE TO A REQ UEST FOR APPLICATION S 25
ISSUED UNDER THIS SE CTION; 26
2. FOR A PERIOD OF 30 CALENDAR DAYS ; AND 27
3. BEGINNING ON A DATE THAT IS AT LEAST 60 28
CALENDAR DAYS AFTER THE DATE ON W HICH THE DIVISION ISSUED THE R EQUEST 29
FOR APPLICATIONS ; 30
50 HOUSE BILL 556
(IV) AWARD CANNABIS LICEN SES IN AT LEAST TWO SEPARATE 1
ROUNDS IN ACCORDANCE WITH THIS SECTION ; AND 2
(V) RESERVE A REASONABLE NUMBER OF LICENSES T O ALLOW 3
MICRO LICENSES TO TR ANSITION TO STANDARD LICENSES, AS DETERMINED IN 4
REGULATIONS BY THE DIVISION. 5
(2) THE DIVISION MAY SUSPEND , FINE, RESTRICT, OR REVOKE A 6
CANNABIS LICENSE IF IT IS DETERMINED THA T A CANNABIS LICENSE E HAS NOT 7
COMPLIED WITH STATEM ENTS IN THE APPLICAT ION, INCLUDING STATEMENTS 8
ABOUT STANDARDS OF OPERA TION OR EMPLOYMENT P RACTICES RELATED TO 9
DIVERSITY, EQUITY, AND INCLUSION . 10
(3) THE DIVISION MAY NOT: 11
(I) ACCEPT MORE THAN ONE APPLICATION PER LICE NSE TYPE 12
FROM AN APPLICANT IN ANY ROUND; 13
(II) ACCEPT MORE THAN TWO APPLICATIONS FROM AN 14
APPLICANT IN ANY ROU ND; 15
(III) REQUIRE THAT AN APPL ICANT POSSESS OR OWN A 16
PROPERTY OR FACILITY TO OPERATE A CANNABI S BUSINESS AT THE TI ME OF 17
APPLICATION; OR 18
(IV) REGARDLESS OF THE NU MBER OF LICENSE AWAR DS 19
AUTHORIZED IN EACH R OUND, AWARD MORE LICENSES THAN THE TO TAL NUMBER 20
OF LICENSES AUTHORIZ ED UNDER § 36–401(D) OF THIS SUBTITLE; OR 21
(V) CONDUCT A MARKET DEM AND STUDY BEFORE THE FIRST 22
ROUND LICENSES ARE I SSUED. 23
(4) THE DIVISION MAY ADOPT RE GULATIONS CONCERNING THE 24
EQUITY AND FAIRNESS OF THE POOL OF APPLICAN TS THROUGHOUT THE 25
APPLICATION PROCESS . 26
(C) TO BE LICENSED, AN APPLICANT SHALL S UBMIT TO THE DIVISION: 27
(1) AN APPLICATION FEE I N ACCORDANCE WITH § 36–403 OF THIS 28
SUBTITLE; AND 29
(2) AN APPLICATION DEVEL OPED BY THE DIVISION UNDER TH IS 30
TITLE. 31
HOUSE BILL 556 51
(D) (1) FOR THE FIRST ROUND , SUBJECT TO PARAGRAPH S (2) AND (3) OF 1
THIS SUBSECTION , THE DIVISION SHALL ENTER EACH SOCIAL EQUITY A PPLICANT 2
THAT MEETS THE MINIM UM QUALIFICATIONS ES TABLISHED BY THE DIVISION INTO 3
A LOTTERY AND ISSUE TO SOCIAL EQUITY APPLICANTS NOT MORE THAN: 4
(I) FOR STANDARD LICENSE S: 5
1. 20 GROWER LICENSES ; 6
2. 40 PROCESSOR LICENSES ; AND 7
3. 80 DISPENSARY LICENSES ; 8
(II) FOR MICRO LICENSES : 9
1. 30 GROWER LICENSES ; 10
2. 30 PROCESSOR LICENSES ; AND 11
3. 75 10 DISPENSARY LICENSES ; AND 12
(III) 10 INCUBATOR SPACE LICE NSES. 13
(2) THE DIVISION SHALL DETERM INE WHETHER AN APPLI CATION 14
MEETS THE MINIMUM QU ALIFICATIONS FOR THE LOTTERY ON A PASS –FAIL BASIS, 15
AS DETERMINED BY THE DIVISION, AFTER EVALUATING : 16
(I) A DETAILED OPERATIONAL PLAN FOR THE SAFE , SECURE, 17
AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS; 18
(II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF 19
SUCCESS AND SUFFICIE NT BUSINESS ABILITY AND EXPERIENCE ON TH E PART OF 20
THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING 21
CONDITIONS; AND 22
(III) A DETAILED DIVERSITY PLAN. 23
(3) FIRST ROUND APPLICATI ON SUBMISSIONS FOR A LL LICENSE 24
TYPES ARE LIMITED TO SOCIAL EQUITY APPLIC ANTS. 25
(E) FOR THE SECOND ROUND OF LICENSING, THE DIVISION SHALL ISSUE 26
LICENSES IN ACCORDAN CE WITH SUBSECTION (F) OR (G) OF THIS SECTION. 27
(E) (F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF THE 28
DIVISION, IN CONSULTATION WITH THE CERTIFICATION AG ENCY DESIGNATED BY 29 52 HOUSE BILL 556
THE BOARD OF PUBLIC WORKS UNDER § 14–303(B) OF THE STATE FINANCE AND 1
PROCUREMENT ARTICLE, THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND 2
WOMEN BUSINESS AFFAIRS, THE GENERAL ASSEMBLY, AND THE OFFICE OF THE 3
ATTORNEY GENERAL, DETERMINES THAT THE APPLICANTS AWARDED A LICENSE 4
UNDER SUBSECTION (D) OF THIS SECTION ARE NOT DIVERSE AND A DISPARITY 5
STUDY DETERMINES THA T THERE IS A COMPELL ING INTEREST TO IMPLEMENT 6
REMEDIAL MEASURES TO ASSIST MINORITIES AN D WOMEN IN THE CANNABIS 7
INDUSTRY A DISPARITY STUDY DE MONSTRATES A STRONG BASIS IN EVIDENCE OF 8
BUSINESS DISCRIMINATION AG AINST FIRMS OWNED BY MINORITIES AND WOMEN IN 9
THE MARYLAND CANNABIS MAR KET, THE DIVISION SHALL ENTER EACH APPLICANT 10
THAT MEETS THE MINIMUM QUALIFIC ATIONS ESTABLISHED B Y THE DIVISION INTO 11
A LOTTERY AND ISSUE TO THE APPLICANTS A SECOND ROU ND OF LICENSES , 12
EMPLOYING REMEDIAL M EASURES CONSISTENT W ITH CONSTITUTIONAL 13
REQUIREMENTS , FOR NOT MORE THAN : 14
(I) FOR STANDARD LICENSE S: 15
1. 25 GROWER LICENSES ; 16
2. 25 PROCESSOR LICENSES ; AND 17
3. 120 DISPENSARY LICENSES ; 18
(II) FOR MICRO LICENSES: 19
1. 70 GROWER LICENSES ; 20
2. 70 PROCESSOR LICENSES ; AND 21
3. 125 190 DISPENSARY LICENSES ; 22
(III) 10 INCUBATOR SPACE LICE NSES; AND 23
(IV) 15 ON–SITE CONSUMPTION LIC ENSES. 24
(2) THE DIVISION SHALL DETERM INE WHETHER AN APPLI CATION 25
MEETS THE MINIMUM QU ALIFICATIONS FOR A L OTTERY BASED ON A PA SS–FAIL 26
BASIS, AS DETERMINED BY THE DIVISION, AFTER EVALUATING : 27
(I) A DETAILED OPERATION AL PLAN FOR THE SAFE , SECURE, 28
AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS; 29
(II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF 30
SUCCESS AND SUFFICIE NT BUSINESS ABILITY AND EXPERIENCE ON TH E PART OF 31 HOUSE BILL 556 53
THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING 1
CONDITIONS; 2
(III) A DETAILED DIVERSITY PLAN; AND 3
(IV) REMEDIAL MEASURES ES TABLISHED IN ACCORDA NCE 4
WITH A DISPARITY STU DY. 5
(2) IF THE DIVISION, IN CONSULTATION WITH THE CERTIFICATION 6
AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER § 14–303(B) OF 7
THE STATE FINANCE AND PROCUREMENT ARTICLE, THE GOVERNOR’S OFFICE OF 8
SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE GENERAL ASSEMBLY, 9
AND THE OFFICE OF THE ATTORNEY GENERAL, DETERMINES THAT A LO TTERY 10
SYSTEM EMPLOYING REM EDIAL MEASURES ESTAB LISHED IN ACCORDANCE WITH A 11
DISPARITY STUDY CAN BE CONDUCTED CONSIST ENT WITH CONSTITUTIONAL 12
REQUIREMENTS , THE DIVISION SHALL AWARD LICENSES UNDER PARAG RAPH (1) OF 13
THIS SUBSECTION THRO UGH A LOTTERY PROCES S THAT EMPLOYS REMED IAL 14
MEASURES. 15
(F) (G) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS 16
SUBSECTION, IF THE DIVISION, IN CONSULTATION WITH TH E CERTIFICATION 17
AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER § 14–303(B) OF 18
THE STATE FINANCE AND PROCUREMENT ARTICLE, THE GOVERNOR’S OFFICE OF 19
SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE GENERAL ASSEMBLY, 20
AND THE OFFICE OF THE ATTORNEY GENERAL, DETERMINES THAT THE 21
APPLICANTS AWARDED A LICENSE UN DER SUBSECTION (D) OF THIS SECTION ARE 22
DIVERSE REGARDLESS OF THE RE SULTS OF A DISPARITY STUDY DOES NOT 23
DEMONSTRATE A STRONG BASIS IN EVIDENCE OF BUSINESS DISCRIMINAT ION 24
AGAINST FIRMS OWNED BY MINORITIES AND WOMEN IN THE MARYLAND CANNABIS 25
MARKET, THE DIVISION SHALL ENTER EACH APPLICANT THAT MEETS THE MINIMUM 26
QUALIFICATIONS ESTAB LISHED BY THE DIVISION INTO A LOTTE RY AND ISSUE TO 27
THE APPLICANTS NOT M ORE THAN: 28
(I) FOR STANDARD LICENSE S: 29
1. 25 GROWER LICENSES ; 30
2. 25 PROCESSOR LICENSES ; AND 31
3. 120 DISPENSARY LICENSES ; 32
(II) FOR MICRO LICENSES : 33
1. 70 GROWER LICENSES ; 34 54 HOUSE BILL 556
2. 70 PROCESSOR LICENSES ; AND 1
3. 125 190 DISPENSARY LICENSES ; 2
(III) 10 INCUBATOR SPACE LICENSES ; AND 3
(IV) 15 ON–SITE CONSUMPTION LIC ENSES. 4
(2) THE DIVISION SHALL DETERM INE WHETHER AN APPLI CATION 5
MEETS THE MINIMUM QU ALIFICATIONS FOR A L OTTERY BASED ON A PA SS–FAIL 6
BASIS, AS DETERMINED BY THE DIVISION, AFTER EVALUATING : 7
(I) A DETAILED OPERATION AL PLAN FOR THE SAFE , SECURE, 8
AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS; 9
(II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF 10
SUCCESS AND SUFFICIE NT BUSINESS ABILITY AND EXPERIENCE ON TH E PART OF 11
THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING 12
CONDITIONS; 13
(III) A DETAILED DIVERSITY PLAN; AND 14
(IV) FOR ALL LICENSE TYPE S EXCEPT MICRO LICEN SES, 15
WHETHER OR NOT THE A PPLICANT QUALIFIES A S A SOCIAL EQUITY AP PLICANT. 16
(3) SECOND ROUND APPLICAT ION APPLICATION SUBMISSIONS FOR 17
MICRO LICENSES UNDER THIS SUBSECTION ARE LIMITED TO SOCIAL EQ UITY 18
APPLICANTS. 19
(G) (H) (1) FOR CANNABIS LICENSE AWARDS SUBSEQUENT TO THE 20
ROUND SPECIFIED UNDE R PARAGRAPH (2) SUBSECTION (F) OR (G) OF THIS 21
SUBSECTION SECTION, THE DIVISION SHALL AWARD LICENSES IN ACCORDANCE 22
WITH THIS SUBSECTION . 23
(2) THE DIVISION SHALL AWARD LICENSES AS NEEDED IN 24
ACCORDANCE WITH A MA RKET DEMAND STUDY . 25
(2) (3) THE DIVISION MAY: 26
(I) SHALL DETERMINE WHET HER AN APPLICATION M EETS THE 27
MINIMUM QUALIFICATIONS FOR A LOTTERY BASED ON FAC TORS THAT IT DEVELOP S; 28
AND 29
HOUSE BILL 556 55
(II) MAY LIMIT SOME OR ALL OF THE LICENSES ISSUED UNDER 1
THIS PARAGRAPH TO SO CIAL EQUITY APPLICAN TS OR MINORITY BUSINESS 2
APPLICANTS, IF DOING SO IS NEEDE D TO ENSURE DIVERSIT Y AND INCLUSION IN THE 3
INDUSTRY, AS WARRANTED BY THE DISPARITY STUDY ; AND 4
(II) EMPLOY REMEDIAL MEAS URES, CONSISTENT WITH 5
CONSTITUTIONAL REQUI REMENTS, IF THE DIVISION, IN CONSULTATION WITH THE 6
CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER § 7
14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE 8
GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE 9
GENERAL ASSEMBLY, AND THE OFFICE OF THE ATTORNEY GENERAL, DETERMINES 10
THAT A DISPARITY STU DY DEMONSTRATES A ST RONG BASIS IN EVIDEN CE OF 11
BUSINESS DISCRIMINAT ION AGAINST FIRMS OW NED BY MINORITIES AN D WOMEN IN 12
THE MARYLAND CANNABIS MAR KET. 13
36–405. 14
(A) A LOCAL JURISDICTION POLITICAL SUBDIVISIO N MAY: 15
(1) ESTABLISH REASONABLE ZONING REQUIREMENTS FOR CANNABIS 16
BUSINESSES; AND 17
(2) DECIDE HOW TO DISTRI BUTE ITS ALLOCATION OF REVENUE 18
UNDER § 2–1302.2 OF THE TAX – GENERAL ARTICLE. 19
(B) A LOCAL JURISDICTION POLITICAL SUBDIVISIO N MAY NOT: 20
(1) IMPOSE A TAX ON CANN ABIS; 21
(2) (1) ESTABLISH ZONING OR OTHER REQUIREMENTS T HAT 22
UNDULY BURD EN A CANNABIS LICENS EE; 23
(3) (2) IMPOSE LICENSING , OPERATING, OR OTHER FEES OR 24
REQUIREMENTS ON A CA NNABIS LICENSEE THAT ARE DISPROPORTIONATE LY 25
GREATER OR MORE BURD ENSOME THAN THOSE IM POSED ON OTHER BUSIN ESSES 26
WITH A SIMILAR IMPAC T ON THE AREA WHERE THE CANNABIS LICENSEE IS 27
LOCATED; 28
(3) PROHIBIT TRANSPORTAT ION THROUGH OR DELIV ERIES WITHIN 29
THE LOCAL JURISDICTION POLITICAL SUBDIVISIO N BY CANNABIS ESTABLIS HMENTS 30
LOCATED IN OTHER JURISDICTIONS POLITICAL SUBDIVISIO NS; 31
(4) PREVENT AN ENTITY WH OSE LICENSE MAY BE CONVERTED UND ER 32
§ 36–401(B)(1)(II) OF THIS SUBTITLE AND THAT IS IN COMPLIANC E WITH ALL 33 56 HOUSE BILL 556
RELEVANT MEDICAL CAN NABIS REGULATIONS FR OM BEING GRANTED THE LICENSE 1
CONVERSION ; OR 2
(5) NEGOTIATE OR ENTER I NTO AN AGREEMENT WIT H A CANNABIS 3
ESTABLISHMENT OR A CANNABIS ESTABLISH MENT APPLICANT REQUI RING THAT 4
THE CANNABIS ESTABLI SHMENT OR APPLICANT PROVIDE MONEY , DONATIONS, 5
IN–KIND CONTRIBUTIONS , SERVICES, OR ANYTHING OF VALUE TO THE LOCAL 6
JURISDICTION POLITICAL SUBDIVISIO N. 7
(C) THE USE OF A FACILITY BY A CANNABIS LICENSEE IS NOT REQUIRED TO 8
BE SUBMITTED TO , OR APPROVED BY , A COUNTY OR MUNICIPA L ZONING BOARD , 9
AUTHORITY, OR UNIT IF IT WAS PR OPERLY ZONED AND OPE RATING ON OR BEFORE 10
JANUARY 1, 2023. 11
(D) A POLITICAL SUBDIVISIO N OR SPECIAL TAXING DISTRICT MAY N OT 12
IMPOSE A TAX ON CANN ABIS. 13
36–406. 14
(A) THE DIVISION MAY ISSUE IN CUBATOR SPACE LICENS ES AUTHORIZING 15
AN A NONPROFIT ENTITY TO OPERATE A LICENSED PREMISES IN WHICH MICRO 16
LICENSEES MAY OPERAT E A CANNABIS BUSINES S. 17
(B) SUBJECT TO SUBSECTION (C) OF THIS SECTION, THE MARYLAND 18
ECONOMIC DEVELOPMENT CORPORATION , IN CONSULTATION WITH THE DIVISION, 19
SHALL ACQUIRE AND CO NSTRUCT OR REFURBISH AT LEAST ONE FACILIT Y TO 20
OPERATE AN INCUBATOR SPACE. 21
(C) THE MARYLAND ECONOMIC DEVELOPMENT CORPORATION MAY ENTER 22
INTO A MEMORANDUM OF UNDERSTA NDING WITH A NONPROF IT ORGANIZATION TO 23
OPERATE A FACILITY U NDER SUBSECTION (B) OF THIS SECTION IF T HE DIVISION 24
AND THE CORPORATION PROVIDE O VERSIGHT OF THE FACI LITY. 25
(D) AN INCUBATOR SPACE LI CENSEE MAY PURCHASE EQUIPMENT TO BE 26
USED BY OTHER INCUBATOR SPAC E LICENSEES IN THE S AME INCUBATOR SPACE . 27
(D) (E) THE DIVISION SHALL ADOPT REGULATIONS TO ESTAB LISH A 28
MARYLAND INCUBATOR PROGRAM BASED ON THE BEST PRACTICES IN OT HER 29
STATES. 30
36–407. 31
(A) (1) THE DIVISION MAY ISSUE ON –SITE CONSUMPTION LIC ENSES 32
AUTHORIZING AN ENTIT Y TO OPERATE A LICEN SED PREMISES IN WHIC H CANNABIS 33 HOUSE BILL 556 57
MAY BE CONSUMED IN A CCORDANCE WITH THIS TITLE AND ANY REGULA TIONS 1
ADOPTED UNDER THIS T ITLE. 2
(2) AN ON–SITE CONSUMPTION EST ABLISHMENT MAY OPERATE ONLY 3
IF THE COUNTY AND , IF APPLICABLE, THE MUNICIPALITY , WHERE THE BUSINESS I S 4
LOCATED HAVE ISSUED A PERMIT OR LICENSE THAT EXPRESSLY ALLOW S THE 5
OPERATION OF THE ON –SITE CONSUMPTION EST ABLISHMENT . 6
(B) SUBJECT TO THE LIMITA TIONS IN § 36–405 OF THIS SUBTITLE , A 7
COUNTY AND, IF APPLICABLE, A MUNICIPALITY MAY : 8
(1) PROHIBIT THE OPERATI ON OF ON –SITE CONSUMPTION 9
ESTABLISHMENTS ; 10
(2) PROHIBIT OR RESTRICT THE SMOKING OR VAPIN G OF CANNABIS 11
AT ON–SITE CONSUMPTION EST ABLISHMENTS ; OR 12
(3) ADOPT ZO NING AND PLANNING RE QUIREMENTS FOR ON –SITE 13
CONSUMPTION ESTABLIS HMENTS. 14
(C) (1) AN ON–SITE CONSUMPTION LIC ENSE AUTHORIZES AN E NTITY TO 15
DISTRIBUTE CANNABIS OR CANNABIS PRODUCTS FOR ON–SITE CONSUMPTION . 16
(2) AN ON–SITE CONSUMPTION LIC ENSE DOES NOT AUTHOR IZE THE 17
HOLDER OF THE LICENS E TO: 18
(I) CULTIVATE CANNABIS ; 19
(II) PROCESS CANNABIS OR CANNABIS–INFUSED PRODUCTS ; OR 20
(III) ADD CANNABIS TO FOOD PREPARED OR SERVED O N THE 21
PREMISES. 22
(D) A FOOD SERVICE FACILIT Y, AS DEFINED IN § 21–301 OF THE HEALTH – 23
GENERAL ARTICLE, MAY APPLY FOR A LICE NSE TO OPERATE AN ON –SITE 24
CONSUMPTION ESTABLIS HMENT. 25
(E) THE DIVISION SHALL: 26
(1) MAINTAIN A LIST OF A LL ON–SITE CONSUMPTION 27
ESTABLISHMENTS IN TH E STATE; AND 28
(2) MAKE THE LIST AVAILA BLE ON ITS WEBSITE . 29
58 HOUSE BILL 556
(F) AN ON–SITE CONSUMPTION EST ABLISHMENT MAY NOT : 1
(1) ALLOW ON–DUTY EMPLOYEES OF TH E BUSINESS TO CONSUM E 2
CANNABIS ON THE LICE NSED PREMISES ; 3
(2) DISTRIBUTE OR ALLOW THE DISTRIBUTION OF FREE SAMPLES OF 4
CANNABIS ON THE LICE NSED PREMISES ; 5
(3) ALLOW THE CONSUMPTIO N OF ALCOHOL ON THE LICENSED 6
PREMISES; 7
(4) ALLOW THE SMOKING OR VAPING OF TOBACCO OR TOBACCO 8
PRODUCTS ON THE LICE NSED PREMISES ; 9
(5) ALLOW AN ACTIVITY ON THE LICENSED PREMISE S THAT WOULD 10
REQUIRE AN ADDITIONA L LICENSE UNDER THIS TITLE, INCLUDING GROWING , 11
PROCESSING, OR DISPENSING ; 12
(6) ALLOW THE USE OR CON SUMPTION OF CANNABIS BY A PATRON 13
WHO DISPLAYS ANY VIS IBLE SIGNS OF INTOXI CATION; OR 14
(7) ADMIT ONTO THE LICEN SED PREMISES AN INDIVIDUAL WHO IS 15
UNDER THE AGE OF 21 YEARS. 16
(G) AN ON–SITE CONSUMPTION EST ABLISHMENT SHALL : 17
(1) REQUIRE ALL EMPLOYEE S TO SUCCESSFULLY CO MPLETE AN 18
ANNUAL RESPONSIBLE V ENDOR TRAINING PROGR AM AUTHORIZED UNDER THIS 19
TITLE; AND 20
(2) ENSURE THAT THE DISP LAY AND CONSUMPTION OF CANNABIS OR 21
CANNABIS PRODUCTS AR E NOT VISIBLE FROM O UTSIDE OF THE LICENS ED 22
PREMISES. 23
(H) (1) AN ON–SITE CANNABIS ESTABL ISHMENT SHALL EDUCAT E 24
CONSUMERS BY PROVIDI NG INFORMATIONAL MAT ERIALS REGARDING THE SAFE 25
CONSUMPTION OF CANNA BIS. 26
(2) THE EDUCATIONAL MATER IALS PROVIDED UNDER PARAGRAPH 27
(1) OF THIS SUBSECTION M UST BE BASED ON THE REQUIREMENTS ESTABLI SHED BY 28
THE CANNABIS PUBLIC HEALTH ADVISORY COUNCIL ESTABLISHED U NDER § 29
13–4502 OF THE HEALTH – GENERAL ARTICLE. 30
HOUSE BILL 556 59
(I) THIS SECTION DOES NOT PROHIBIT A COUNTY OR MUNICIPALI TY FROM 1
ADOPTING ADDITIONAL REQUIREMENTS FOR EDU CATION ON THE SAFE 2
CONSUMPTION OF CANNA BIS ON THE PREMISES OF A LICENSED ON –SITE 3
CONSUMPTION ESTABLIS HMENT. 4
(J) A PERSON MAY HAVE AN O WNERSHIP INTEREST IN OR CONTROL OF, 5
INCLUDING THE POWER TO MANAGE AND OPERAT E, TWO ON–SITE CONSUMPTION 6
ESTABLISHMENTS LICEN SED UNDER THIS SECTI ON. 7
36–408. 8
(A) (1) THE DIVISION SHALL REGIST ER AT LEAST ONE INDE PENDENT 9
TESTING LABORATORY T O TEST CANNABIS AND CANNABIS PRODUCTS TH AT ARE TO 10
BE SOLD IN THE STATE. 11
(2) THE DIVISION SHALL HOLD M EDICAL AND ADULT –USE CANNABIS 12
TESTING TO THE SAME STANDARDS. 13
(B) TO BE REGISTERED AS A N INDEPENDENT TESTIN G LABORATORY , A 14
LABORATORY MUST : 15
(1) MEET THE APPLICATION REQUIREMENTS ESTABLI SHED BY THE 16
DIVISION; 17
(2) PAY AN APPLICATION F EE DETERMINED BY THE DIVISION; AND 18
(3) MEET THE STANDARDS A ND REQUIREMENTS FOR 19
ACCREDITATION , INSPECTION, AND TESTING ESTABLIS HED BY THE DIVISION. 20
(C) (1) AN INDEPENDENT TESTIN G LABORATORY LICENSE IS VALID FOR 21
2 YEARS ON INITIAL LIC ENSURE. 22
(2) AN INDEPENDENT TESTIN G LABORATORY LICENSE IS VALID FOR 23
2 YEARS ON RENEWAL . 24
(D) A REGISTERED INDEPENDE NT TESTING LABORATOR Y IS AUTHORIZED 25
TO TEST AND TRANSPOR T CANNABIS AND CANNA BIS PRODUCTS ON BEHA LF OF 26
CANNABIS LICENSE ES. 27
(E) (1) A LABORATORY AGENT OR AN EMPLOYEE OF AN IN DEPENDENT 28
TESTING LABORATORY M AY NOT RECEIVE DIREC T OR INDIRECT FINANC IAL 29
COMPENSATION , OTHER THAN REASONABL E CONTRACTUAL FEES T O CONDUCT 30
TESTING, FROM ANY ENTITY FOR WHICH IT IS CONDUCTI NG TESTING UN DER THIS 31
TITLE. 32 60 HOUSE BILL 556
(2) AN INDIVIDUAL WHO POS SESSES AN INTEREST I N OR IS A 1
LABORATORY AGENT EMP LOYED BY AN INDEPEND ENT TESTING LABORATO RY, OR 2
AN IMMEDIATE FAMILY MEMBER OF THE INDIVI DUAL, MAY NOT POSSESS AN 3
INTEREST IN OR BE EM PLOYED BY A CANNABIS LICENSEE. 4
(F) CANNABIS AND CANNABIS PRODUCTS MAY NOT BE SOLD OR OTHERWISE 5
MARKETED UNDER THIS TITLE IF THE CANNABI S OR CANNABIS PRODUC T HAS NOT 6
BEEN TESTED BY AN IN DEPENDENT TESTING LA BORATORY AND DETERMI NED TO 7
MEET THE DIVISION’S TESTING PROTOCOLS . 8
(G) THE DIVISION SHALL ADOPT RE GULATIONS THAT ESTAB LISH: 9
(1) THE STANDARDS AND RE QUIREMENTS TO BE MET BY AN 10
INDEPENDENT TESTING LABORATORY TO OBTAIN A REGISTRATION ; 11
(2) THE STANDARDS OF CAR E TO BE FOLLOWED BY AN INDEPENDENT 12
TESTING LABORATORY ; AND 13
(3) THE BASIS AND PROCESSES FO R DENIAL, REVOCATION , AND 14
SUSPENSION OF A REGI STRATION OF AN INDEP ENDENT TESTING LABOR ATORY. 15
(H) THE DIVISION MAY INSPECT AN INDEPENDENT TESTI NG LABORATORY 16
REGISTERED UNDER THI S SECTION TO ENSURE COMPLIANCE WITH THIS TITLE AND 17
ANY REGULATIONS ADOPTED UND ER THIS TITLE. 18
(I) (1) ANY REGISTRATION TO O PERATE AN INDEPENDEN T TESTING 19
LABORATORY ISSUED BY THE NATALIE M. LAPRADE MEDICAL CANNABIS 20
COMMISSION ON OR BEFO RE JULY 1, 2023, SHALL BE VALID UNDER THIS TITLE AND 21
SHALL AUTHORIZE AN I NDEPENDENT TESTING LABORA TORY TO PERFORM TEST ING 22
ON MEDICAL AND ADULT –USE CANNABIS AND CAN NABIS PRODUCTS . 23
(2) THE DIVISION SHALL CONVER T ALL INDEPENDENT TE STING 24
LABORATORY REGISTRAT IONS IN ACCORDANCE W ITH THIS SUBSECTION . 25
36–409. 26
(A) THE FOLLOWING BUSINESSES SHALL REG ISTER WITH THE DIVISION IN 27
ORDER TO PROVIDE SER VICES TO A CANNABIS LICENSEE: 28
(1) A TRANSPORTER ; 29
(2) A SECURITY GUARD AGE NCY; 30
HOUSE BILL 556 61
(3) A WASTE DISPOSAL COM PANY; AND 1
(4) ANY OTHER TYPE OF CA NNABIS BUSINESS THAT IS AUTHORIZED 2
BY THE DIVISION TO PROVIDE P LANT OR PRODUCT –TOUCHING SERVICES TO 3
CANNABIS LICENSEES . 4
(B) THE DIVISION SHALL ADOPT REGULATIONS THAT EST ABLISH: 5
(1) THE STANDARDS AND RE QUIREMENTS TO BE MET BY AN ENTITY 6
TO OBTAIN A REGISTRA TION UNDER THIS SUBT ITLE; AND 7
(2) THE BASIS AND PROCES SES FOR APPROVAL , DENIAL, 8
REVOCATION , AND SUSPENSION OF TH E CANNABIS REGISTRAT ION. 9
(C) A REGISTRATION TO OPER ATE A TRANSPORTER , SECURITY GUARD 10
AGENCY, OR WASTE DISPOSAL CO MPANY ISSUED BY THE DIVISION NATALIE M. 11
LAPRADE MEDICAL CANNABIS COMMISSION ON OR BEFORE JULY 1, 2023, SHALL 12
BE VALID UNDER THIS TITLE AND AUTHORIZE A TRANSPORTER , SECURITY GUARD 13
AGENCY, OR WASTE DISPOSAL CO MPANY TO HANDLE MEDI CAL AND ADULT –USE 14
CANNABIS AND CANNABI S PRODUCTS. 15
36–410. 16
BEGINNING JULY 1, 2023, A CANNABIS LICENSEE THAT I S OPERATING A 17
DISPENSARY SHALL : 18
(1) ENSURE THAT IT HAS A DEQUATE SUPPLY FOR Q UALIFYING 19
PATIENTS AND CAREGIV ERS; AND 20
(2) SET ASIDE OPERATING HOURS TO SERVE ONLY QUALIFYING 21
PATIENTS AND CAREGIV ERS; AND 22
(3) ENSURE THAT SHELF SP ACE IN THE DISPENSARY IS AVAILABLE 23
FOR CANNABIS AND CAN NABIS PRODUCTS FROM GROWERS AND PROCESSO RS THAT 24
DO NOT SHARE COMMON OWNERSHIP WITH THE D ISPENSARY. 25
SUBTITLE 5. AGENT, OWNER, AND LICENSE TRANSFER REQUIREMENTS . 26
36–501. 27
(A) EACH A CANNABIS AGENT SHALL BE REGISTERED WITH TH E DIVISION 28
BEFORE THE AGENT MAY VOLUNTEER OR WORK FO R A CANNABIS LICENSE E OR 29
CANNABIS REGISTRANT . 30
62 HOUSE BILL 556
(B) A CANNABIS AGENT REGIS TRATION IS VALID FOR 2 YEARS. 1
(C) TO BE ELIGIBLE TO REGISTER AS A CANNABIS AGENT WITH THE 2
DIVISION, A CANNABIS AGENT AN INDIVIDUAL MUST: 3
(1) BE AT LEAST 21 YEARS OLD; AND 4
(2) IF THE RECORDS ARE L EGALLY ACCESSIBLE , OBTAIN A STATE AND 5
NATIONAL CRIMINAL HI STORY RECORDS CHECK IN ACCORDANCE WITH § 36–505 OF 6
THIS SUBTITLE. 7
(D) THE DIVISION MAY NOT REGI STER AS A CANNABIS AG ENT AN 8
INDIVIDUAL WHO : 9
(1) DOES NOT MEET THE CR ITERIA ESTABLISHED U NDER 10
SUBSECTION (C) OF THIS SECTION; OR 11
(2) HAS BEEN CONVICTED O F OR PLEADED NOLO CO NTENDERE TO A 12
CRIME INVOLVING MORA L TURPITUDE, WHETHER OR NOT ANY A PPEAL OR OT HER 13
PROCEEDING IS PENDIN G TO HAVE THE CONVIC TION OR PLEA SET ASI DE. 14
(E) THE DIVISION MAY NOT DENY A CANNABIS AGENT REG ISTRATION 15
BASED ON ANY CANNABI S–RELATED OFFENSES OCC URRING BEFORE JANUARY JULY 16
1, 2023. 17
(F) A CANNABIS LICENSEE SH ALL REQUIRE EACH REGISTERED CANNABIS 18
AGENT TO COMPLETE AN ANNUAL RESPONSIBLE V ENDOR TRAINING PROGR AM 19
AUTHORIZED UNDER THI S TITLE. 20
(G) A REGISTRATION OF A CA NNABIS AGENT ISSUED BY THE NATALIE M. 21
LAPRADE MEDICAL CANNABIS COMMISSION ON OR BEFO RE JULY 1, 2023, SHALL: 22
(1) BE VALID UNDER THIS TITLE; AND 23
(2) AUTHORIZE THE CANNAB IS AGENT TO BE EMPLO YED BY OR 24
VOLUNTEER WITH A LIC ENSED CANNABIS BUSIN ESS. 25
36–502. 26
(A) AN INDIVIDUAL A PERSON WISHING TO HOLD AN O WNERSHIP INTEREST 27
OF 5% OR GREATER IN , OR CONTROL OF , A CANNABIS LICENSEE SHALL SUB MIT TO 28
THE DIVISION: 29
HOUSE BILL 556 63
(1) AN APPLICATION THAT INCLUDES THE NAME , ADDRESS, AND DATE 1
OF BIRTH OF THE APPL ICANT; 2
(2) A STATEMENT SIGNED B Y THE APPLICANT ASSE RTING THAT THE 3
APPLICANT HAS NOT PR EVIOUSLY HAD A CANNA BIS LICENSE OR CANNA BIS 4
REGISTRATION SUSPEND ED OR REVOKED ; 5
(3) A STATE AND NATIONAL CR IMINAL HISTORY RECOR DS CHECK IN 6
ACCORDANCE WITH § 36–505 OF THIS SUBTITLE; 7
(4) ANY INFORMATION REQU IRED BY THE DIVISION TO COMPLETE AN 8
INVESTIGATION INTO T HE BACKGROUND OF THE APPLICANT, INCLUDING 9
FINANCIAL RECORDS AN D OTHER INFORMATION RELATING TO THE BUSI NESS 10
AFFAIRS OF THE APPLI CANT; AND 11
(5) AN APPLICATION FEE I N AN AMOUNT TO BE DETERMINED BY THE 12
DIVISION IN ACCORDANC E WITH THIS SUBTITLE . 13
(B) THE DIVISION MAY DENY AN APPLICATION IF: 14
(1) THE APPLICANT : 15
(I) FAILS TO SUBMIT THE INFORMATION REQUIRED UNDER 16
SUBSECTION (A) OF THIS SECTION; OR 17
(II) HAS BEEN CONVICTED O F OR PLEADED NOLO CO NTENDERE 18
TO A CRIME INVOLVING MORAL TURPITUDE , WHETHER OR NOT ANY A PPEAL OR 19
OTHER PROCEEDING IS PENDING TO HAVE THE CONVICTION OR PLEA S ET ASIDE; OR 20
(2) THE DIVISION FINDS A SUBS TANTIAL REASON TO DE NY THE 21
REGISTRATION. 22
36–503. 23
(A) A CANNABIS LICENSE GRA NTED UNDER THIS TITL E IS NOT 24
TRANSFERABLE EXCEPT AS PROVIDED IN THIS SECTION. 25
(B) TO TRANSFER OWNERSHIP OR CONTROL OF A LICE NSE ISSUED UNDER 26
THIS TITLE, A LICENSEE: 27
(1) SHALL SUBMIT TO THE DIVISION: 28
(I) AN APPLICATION FEE I N AN AMOUNT TO BE DE TERMINED BY 29
THE DIVISION IN ACCORDANC E WITH THIS SUBTITLE ; AND 30 64 HOUSE BILL 556
(II) AN APPLICATION DEVEL OPED BY THE DIVISION; AND 1
(2) MUST MEET THE REQUIR EMENTS FOR TRANSFER OF OWNERSHIP 2
OR CONTROL ESTABLISH ED BY THE DIVISION UNDER THIS TITLE . 3
(C) (1) A CANNABIS LICENSEE , INCLUDING A CANNABIS LICENSEE WHOSE 4
LICENSE WAS CONVERTE D IN ACCORDANCE WITH § 36–401 OF THIS TITLE, MAY NOT 5
TRANSFER OWNERSHIP O R CONTROL OF THE LIC ENSE 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 DISABILITY, INCAPACITY, OR DEATH OF THE 12
OWNER OF A CANNABIS LICENSE, THE BANKRUPTCY OF A CANNABIS LICENSEE , OR 13
COURT ORDER . 14
36–504. 15
(A) (1) IN THIS SECTION, “OWNER” INCLUDES ANY TYPE OF OWNER OR 16
BENEFICIARY OF A BUS INESS ENTITY, INCLUDING A PRINCIPA L OFFICER, A 17
DIRECTOR, A PRINCIPAL EMPLOYEE , A PARTNER, AN INVESTOR, A STOCKHOLDER , 18
OR A BENEFICIAL OWNE R OF THE BUSINESS EN TITY AND, NOTWITHSTANDI NG ANY 19
OTHER PROVISION OF T HIS SUBTITLE, A PERSON HAVING ANY OWNERSHIP 20
INTEREST REGARDLESS OF THE PERCENTAGE OF OWNERSHIP INTEREST . 21
(2) “OWNER” DOES NOT INCLUDE A S TOCKHOLDER . 22
(B) EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION , A 23
CONSTITUTIONA L OFFICER OR A SECRE TARY OF A PRINCIPAL DEPARTMENT OF THE 24
EXECUTIVE BRANCH OF THE STATE GOVERNMENT MAY NOT: 25
(1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT 26
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR 27
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT 28
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE. 29
(C) A CONSTITUTIONAL OFFIC ER OR A SECRETARY OF A PRINCIPAL 30
DEPARTMENT OF THE EXECUTIVE BRANCH OF THE STATE GOVERNMENT MAY 31
REMAIN AN OWNER OR A N EMPLOYEE OF A BUSINES S ENTITY THAT HOLDS A LICENSE 32 HOUSE BILL 556 65
UNDER THIS TITLE IF THE CONSTITUTIONAL O FFICER OR SECRETARY WAS AN 1
OWNER OR EMPLOYEE OF THE BUSINESS ENTITY BEFORE THE CONSTITUT IONAL 2
OFFICER’S ELECTION OR APPOIN TMENT OR THE SECRETA RY’S APPOINTMENT . 3
(D) A MEMBER OF THE GENERAL ASSEMBLY MAY NOT : 4
(1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT 5
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR 6
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT 7
HOLDS A LICENSE OR R EGISTRATION UN DER THIS TITLE. 8
(E) A FORMER MEMBER OF THE GENERAL ASSEMBLY, FOR THE 1–YEAR 9
PERIOD IMMEDIATELY A FTER THE MEMBER LEAV ES OFFICE, MAY NOT: 10
(1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT 11
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR 12
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT 13
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE. 14
(F) AN EMPLOYEE OF THE DIVISION MAY NOT: 15
(1) HAVE A DIRECT OR IND IRECT FINANCIAL , OWNERSHIP, OR 16
MANAGEMENT INTEREST , INCLUDING OWNERSHIP OF ANY STOCKS, BONDS, OR 17
OTHER SIMILAR FINANC IAL INSTRUMENTS , IN ANY CANNABIS LICE NSEE; 18
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A PER SON WHO HOLDS A 19
LICENSE OR REGISTRAT ION UNDER THIS TITLE ; 20
(3) BE AN ELECTED OFFICI AL OF STATE OR LOCAL GOVERN MENT; 21
(4) RECEIVE OR SHARE IN , DIRECTLY OR INDIRECT LY, THE RECEIPTS 22
OR PROCEEDS OF A CAN NABIS LICENSEE; OR 23
(5) HAVE A BENEFICIAL IN TEREST IN A CONTRACT FOR THE 24
MANUFACTURE OR SALE OF CANNABIS OR THE P ROVISION OF INDEPEND ENT 25
CONSULTING SERVICES IN CONNECTION WITH A CANNABIS LICE NSE. 26
36–505. 27
(A) IN THIS SECTION , “CENTRAL REPOSITORY” MEANS THE CRIMINAL 28
JUSTICE INFORMATION SYSTEM CENTRAL REPOSITORY IN THE DEPARTMENT OF 29
PUBLIC SAFETY AND CORRECTIONAL SERVICES. 30 66 HOUSE BILL 556
(B) AS PART OF AN APPLICA TION TO THE CENTRAL REPOSITORY FOR A 1
STATE AND NATIONAL CR IMINAL HISTORY RECOR DS CHECK, AN APPLICANT SHALL 2
SUBMIT TO THE CENTRAL REPOSITORY: 3
(1) TWO COMPLETE SETS OF LEGIBLE FINGERPRINTS TAKEN ON 4
FORMS APPROVED BY TH E DIRECTOR OF THE CENTRAL REPOSITORY AND THE 5
DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION ; 6
(2) THE FEE AUTHORIZED U NDER § 10–221(B)(7) OF THE CRIMINAL 7
PROCEDURE ARTICLE FOR ACCESS TO STATE CRIMINAL HISTOR Y RECORDS; AND 8
(3) THE PROCESSING FEE R EQUIRED BY THE FEDERAL BUREAU OF 9
INVESTIGATION FOR A N ATIONAL CRIMINAL HIS TORY RECORDS CHECK . 10
(C) IN ACCORDANCE WITH §§ 10–201 THROUGH 10–228 OF THE CRIMINAL 11
PROCEDURE ARTICLE, THE CENTRAL REPOSITORY SHALL FORW ARD TO THE 12
DIVISION AND TO THE APPLICANT THE APPLICANT’S CRIMINAL HISTORY R ECORD 13
INFORMATION . 14
(D) IF AN APPLICANT HAS M ADE TWO OR MORE UNSU CCESSFUL ATTEMPTS 15
AT SECURING LEGIBLE FINGERPRINTS , THE DIVISION MAY ACCEPT A N ALTERNATE 16
METHOD OF A CRIMINAL HISTORY RECORDS CHEC K AS PERMITTED BY THE 17
DIRECTOR OF THE CENTRAL REPOSITORY AND THE DIRECTOR OF THE FEDERAL 18
BUREAU OF INVESTIGATION . 19
(E) INFORMATION OBTAINED FROM THE CENTRAL REPOSITORY UNDER 20
THIS SECTION SHALL B E: 21
(1) CONFIDENTIAL AND MAY NOT BE REDISSEMINATE D; AND 22
(2) USED ONLY FOR THE PU RPOSE OF REGISTRATIO N UNDER THIS 23
TITLE. 24
(F) THE SUBJECT OF A CRIM INAL HISTORY RECORDS CHECK UNDER THIS 25
SECTION MAY CONTEST THE CRIMINAL HISTORY RECORD INFORMATION 26
DISSEMINATED BY THE CENTRAL REPOSITORY, AS PROVIDED IN § 10–223 OF THE 27
CRIMINAL PROCEDURE ARTICLE. 28
SUBTITLE 6. MEDICAL CANNABIS COMPASSIONATE USE FUND AND PROGRAM. 29
36–601. 30
HOUSE BILL 556 67
(A) IN THIS SECTION , “FUND” MEANS THE MEDICAL CANNABIS 1
COMPASSIONATE USE FUND. 2
(B) THERE IS A MEDICAL CANNABIS COMPASSIONATE USE FUND. 3
(B) (C) (1) THE DIVISION SHALL: 4
(I) ADMINISTER THE COMPASSIONATE USE FUND; AND 5
(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 6
ESTABLISH FEES IN AN AMOUNT NECESSARY TO PROVIDE REVENUES FOR THE 7
PURPOSES OF THE COMPASSIONATE USE FUND. 8
(2) THE DIVISION MAY NOT IMPOSE THE FEES ESTABLISHED UNDER 9
PARAGRAPH (1)(II) OF THIS SUBSECTION O N A LICENSED MEDICAL CANNABIS 10
GROWER, PROCESSOR, OR DISPENSARY DURING THE 2–YEAR PERIOD IMMEDIAT ELY 11
FOLLOWING THE ISSUAN CE OF A LICENSE UNDE R THIS TITLE. 12
(C) (D) THE PURPOSE OF T HE COMPASSIONATE USE FUND IS TO 13
PROVIDE ACCESS TO CA NNABIS FOR INDIVIDUA LS ENROLLED IN THE MARYLAND 14
MEDICAL ASSISTANCE PROGRAM OR IN THE VETERANS AFFAIRS MARYLAND 15
HEALTH CARE SYSTEM, INCLUDING ACCESS TO , AT A REDUCED COST : 16
(1) AN ASSESSMENT OF THE PATIENT’S MEDICAL HISTORY AN D 17
CURRENT MEDICAL COND ITION; AND 18
(2) MEDICAL CANNABIS FRO M A LICENSED DISPENS ARY. 19
(D) (E) (1) THE COMPASSIONATE USE FUND IS A SPECIAL , 20
NONLAPSING FUND THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND 21
PROCUREMENT ARTICLE. 22
(2) THE STATE TREASURER SHALL HOLD THE COMPASSIONATE USE 23
FUND SEPARATELY , AND THE COMPTROLLER SHALL ACC OUNT FOR THE 24
COMPASSIONATE USE FUND. 25
(3) THE COMPASSIONATE USE FUND SHALL BE INVESTE D AND 26
REINVESTED IN THE SA ME MANNER AS OTHER STATE FUNDS, AND ANY INVESTMENT 27
EARNINGS SHALL BE RE TAINED TO THE CREDIT OF THE COMPASSIONATE USE 28
FUND. 29
(F) THE FUND CONSISTS OF : 30
68 HOUSE BILL 556
(1) FEES ESTABLISHED UND ER SUBSECTION (C)(1)(II) OF THIS 1
SECTION; 2
(2) FINES ASSESSED BY TH E DIVISION UNDER THIS T ITLE; 3
(3) MONEY APP ROPRIATED IN THE STATE BUDGET TO THE FUND; 4
(4) INTEREST EARNINGS ; AND 5
(5) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 6
THE BENEFIT OF THE FUND. 7
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 8
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE INVESTE D. 9
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 10
THE FUND. 11
(4) (H) THE COMPASSIONATE USE FUND SHALL BE SUBJECT TO AN 12
AUDIT BY THE OFFICE OF LEGISLATIVE AUDITS AS PROVIDED FO R IN § 2–1220 OF 13
THE STATE GOVERNMENT ARTICLE. 14
(5) (I) THE COMPTROLLER SHALL PAY OUT MONEY FROM THE 15
COMPASSIONATE USE FUND AS DIRECTED BY T HE DIVISION. 16
(E) (J) NO PART OF THE COMPASSIONATE USE FUND MAY REVERT OR BE 17
CREDITED TO: 18
(1) THE GENERAL FUND OF THE STATE; OR 19
(2) ANY OTHER SPECIAL FUND OF THE STATE. 20
(F) (K) EXPENDITURES FROM THE COMPASSIONATE USE FUND MAY BE 21
MADE ONLY IN ACCORDA NCE WITH THE STATE BUDGET . 22
(G) (L) THE DIVISION SHALL ADOPT REGULATIONS TO CARRY OUT THIS 23
SECTION. 24
SUBTITLE 7. CANNABIS RESEARCH AND DEVELOPMENT . 25
36–701. 26
(A) (1) AN INSTITUTION OF HIG HER EDUCATION , A RELATED MEDICAL 27
FACILITY, OR AN AFFILIATED BIO MEDICAL RESEARCH FIR M MAY REGISTER WITH 28
THE DIVISION TO PURCHASE CANNABIS FOR THE PUR POSE OF CONDUCTING A BONA 29 HOUSE BILL 556 69
FIDE RESEARCH PROJEC T RELATING TO THE US ES, PROPERTIES, OR COMPOSITION 1
OF CANNABIS. 2
(2) A REGISTRATION FILED U NDER PARAGRAPH (1) OF THIS 3
SUBSECTION SHALL INC LUDE: 4
(I) THE NAME OF THE PRIM ARY RESEARCHER ; 5
(II) THE EXPECTED DURATIO N OF THE RESEARCH PR OJECT; 6
AND 7
(III) THE PRIMARY OBJECTIV ES OF THE RESEARCH PROJ ECT. 8
(3) A REGISTRATION FILED U NDER PARAGRAPH (1) OF THIS 9
SUBSECTION SHALL REM AIN VALID UNTIL THER E IS A CHANGE IN THE RESEARCH 10
PROJECT OR A WITHDRA WAL OF THE REGISTRAT ION. 11
(B) AN ACADEMIC RESEARCH REPRESENTATIVE MAY P URCHASE CANNABIS 12
FROM A LICENSED DISP ENSARY OR A SUPPLIER OF CAN NABIS THAT IS LICENS ED BY 13
ANY FEDERAL AGENCY T O SUPPLY CANNABIS TO RESEARCHERS . 14
(C) AN ACADEMIC RESEARCH REPRESENTATIVE MAY N OT BE PENALIZED OR 15
ARRESTED UNDER STATE LAW FOR ACQUIRI NG, POSSESSING, OR DISPENSING 16
CANNABIS, PRODUCTS CONTAINING CANNABIS, RELATED SUPPLIES , OR 17
EDUCATIONAL MATERIAL S FOR USE IN A BONA FIDE RESEARCH PROJEC T RELATING 18
TO THE USES, PROPERTIES, OR COMPOSITION OF CA NNABIS. 19
(D) THE DIVISION MAY ADOPT RE GULATIONS TO IMPLEME NT THIS 20
SECTION. 21
36–702. 22
(A) THE DIVISION MAY REGISTER AN ENTITY TO GROW , PROCESS, TEST, 23
AND TRANSFER CANNABI S FOR THE PURPOSES O F RESEARCH AND DEVEL OPMENT 24
AS PROVIDED IN SUBSE CTION (B) OF THIS SECTION. 25
(B) A REGISTRATION ISSUED UNDER SUBSECTION (A) OF THIS SECTION 26
AUTHORIZES THE REGIS TRANT ONLY TO : 27
(1) TEST CHEMICAL POTENC Y AND COMPOSITION LE VELS; 28
(2) CONDUCT CLINICAL INV ESTIGATIONS OF CANNA BIS–DERIVED 29
MEDICINAL PRODUCTS ; 30
70 HOUSE BILL 556
(3) CONDUCT RESEARCH ON THE EFFICACY AND SAFETY OF 1
ADMINISTERING CANNAB IS AS PART OF MEDICA L TREATMENT ; 2
(4) CONDUCT GENOMIC , HORTICULTURAL , OR AGRICULTURAL 3
RESEARCH; AND 4
(5) CONDUCT RESEARCH ON CANNABIS–AFFILIATED PRODUCTS OR 5
SYSTEMS. 6
(C) TO OBTAIN A RESEARCH AND DEVELOPMENT REGISTRATION , AN 7
APPLICANT SHALL SUBM IT TO THE DIVISION: 8
(1) AN APPLICATION FEE I N AN AMOUNT TO BE DE TERMINED BY THE 9
DIVISION; AND 10
(2) AN APPLICATION DEVEL OPED BY THE DIVISION. 11
(D) AN APPLICANT FOR A RE SEARCH AND DEVELOPME NT REGISTRATION 12
MUST MEET THE REGISTRATIO N STANDARDS AND REQU IREMENTS ESTABLISHED BY 13
THE DIVISION. 14
(E) (1) A RESEARCH AND DEVELOP MENT REGISTRATION IS VALID FOR AN 15
INITIAL TERM OF 2 YEARS. 16
(2) A RESEARCH AND DEVELOP MENT REGISTRATION IS VALID FOR 2 17
YEARS ON RENEWAL . 18
(F) A RESEARCH AND DEVELOP MENT REGISTRANT MAY TRANSFER, BY SALE 19
OR DONATION , CANNABIS GROWN WITHI N ITS OPERATION ONLY TO OTHER 20
RESEARCH AND DEVELOP MENT REGISTRANTS . 21
(G) A RESEARCH AND DEVELOP MENT REGISTRANT MAY CONTRACT TO 22
PERFORM RESEARCH IN CONJUNCTION WI TH A PUBLIC HIGHER E DUCATION 23
RESEARCH INSTITUTION OR ANOTHER RESEARCH AND DEVELOPMENT REGI STRANT. 24
SUBTITLE 8. REPORTS. 25
36–801. 26
(A) ON OR BEFORE JUNE 30 EACH YEAR, EACH ENTITY LICENSED OR 27
REGISTERED UNDER THI S TITLE CANNABIS LICENSEE AN D CANNABIS REGIST RANT 28
SHALL REPORT TO THE DIVISION ON: 29
HOUSE BILL 556 71
(1) THE NUMBER OF MINORI TY AND WOMEN OWNERS OF THE 1
CANNABIS LICENSEE OR CANNABIS REGISTRANT ; 2
(2) THE OWNERSHIP INTERE ST OF ANY MINORITY A ND WOMEN 3
OWNERS OF THE CANNAB IS LICENSEE OR CANNA BIS REGISTRANT ; AND 4
(3) THE NUMBER OF MINORI TY AND WOMEN EMPLOYE ES OF THE 5
CANNABIS LICENSEE OR CANNABIS REGISTRANT . 6
(B) ON OR BEFORE JANUARY 1 EACH YEAR, THE DIVISION SHALL REPORT 7
TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE 8
GOVERNMENT ARTICLE, ON THE INFORMATION REPORTED UNDER SUBSECTION (A) 9
OF THIS SECTION. 10
36–802. 11
ON OR BEFORE JANUARY 1 EACH ODD–NUMBERED YEAR , THE DIVISION 12
SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF 13
THE STATE GOVERNMENT ARTICLE, ON: 14
(1) THE AMOUNT OF CANNAB IS CULTIVATED , PROCESSED, AND 15
DISPENSED BY STANDAR D AND MICRO LICENSEE S; AND 16
(2) WHETHER THE SUPPLY O F CANNABIS IS ADEQUA TE TO MEET THE 17
DEMAND FOR CANNABIS AND CANNABIS PRODUCT S. 18
36–803. 19
THE DIVISION SHALL PUBLIS H THE FOLLOWING D ATA, ORGANIZED BY 20
MONTH, ON A ROLLING BASIS A ND ON A PUBLICLY ACC ESSIBLE PART OF THE 21
COMMISSION’S WEBSITE: 22
(1) THE NUMBER OF PATIEN TS, CAREGIVERS, AND PROVIDERS 23
CERTIFIED UNDER THIS TITLE; 24
(2) THE WHOLESALE AND RE TAIL SALES OF MEDICA L AND ADULT–USE 25
CANNABIS, MEASURED BY REVENUE AND VOLUME ; AND 26
(3) THE MEDIAN CONSUMER PRICE FOR CANNABIS A ND CANNABIS 27
PRODUCTS. 28
SUBTITLE 9. ADVERTISING. 29
36–901. 30 72 HOUSE BILL 556
(A) ADVERTISEMENTS AN ADVERTISEMENT FOR MEDICAL CANNABIS AND 1
MEDICAL CANNABIS PRO DUCTS OR MEDICAL CAN NABIS–RELATED SERVICES THA T 2
MAKE MAKES THERAPEUTIC OR MEDIC AL CLAIMS SHALL : 3
(1) BE SUPPORTED BY SUBS TANTIAL CLINICAL EVI DENCE OR 4
SUBSTANTIAL CLINICAL DATA; AND 5
(2) INCLUDE INFORMATION ON THE MOST SIGNIFIC ANT SIDE 6
EFFECTS OR RISKS ASS OCIATED WITH THE USE OF CANNABIS. 7
(B) ADVERTISEMENTS AN ADVERTISEMENT FOR MEDICAL CANNABIS OR 8
MEDICAL CANNABIS PRO DUCTS SHALL INCLUDE A STATEMENT THAT THE PRODUCT 9
IS FOR USE ONLY BY A QUALIFYING PATIENT . 10
36–902. 11
(A) AN ADVERTISEMENT FOR A CANNABIS LICENSEE , CANNABIS PRODUCT , 12
OR CANNABIS–RELATED SERVICE MAY NOT: 13
(1) MAKE A STATEMENT THA T IS FALSE OR MISLEA DING IN A 14
MATERIAL WAY OR IS O THERWISE A VIOLATION OF TITLE 13, SUBTITLE 3 OF THE 15
COMMERCIAL LAW ARTICLE; 16
(2) CONTAIN A DESIGN , AN ILLUSTRATION , A PICTURE, OR A 17
REPRESENTATION THAT : 18
(I) TARGETS OR IS ATTRAC TIVE TO MINORS , INCLUDING A 19
CARTOON CHARACTER , A MASCOT, OR ANY OTHER DEPICTI ON THAT IS COMMONLY 20
USED TO MARKET PRODU CTS TO MINORS; 21
(II) DISPLAYS THE USE OF CANNABIS, INCLUDING THE 22
CONSUMPTION , SMOKING, OR VAPING OF CANNABI S; 23
(III) ENCOURAGES OR PROMOT ES CANNABIS FOR USE AS AN 24
INTOXICANT; OR 25
(IV) IS OBSCENE; 26
(3) ENGAGE IN ADVERTISIN G BY MEANS OF TELEVISION, RADIO, 27
INTERNET, MOBILE APPLICATION , SOCIAL MEDIA , OR OTHER ELECTRONIC 28
COMMUNICATION , OR PRINT PUBLICATION , UNLESS AT LEAST 85% OF THE 29
AUDIENCE IS REASONAB LY EXPECTED TO BE AT LEAST 21 YEARS OLD AS 30
DETERMINED BY RELIAB LE AND CURRENT AUDIE NCE COMPOSITION DATA ; OR 31 HOUSE BILL 556 73
(4) ENGAGE IN ADVERTISIN G BY MEANS OF PLACIN G AN 1
ADVERTISEMENT ON THE SIDE OF A BUILDING O R ANOTHER PUBLICLY V ISIBLE 2
LOCATION OF ANY FORM , INCLUDING A SIGN , A POSTER, A PLACARD, A DEVICE, A 3
GRAPHIC DISPLAY , AN OUTDOOR BILLBOARD, OR A FREESTANDING SIGNBOA RD. 4
(B) (1) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 5
EACH WEBSITE OWNED , MANAGED, OR OPERATED BY A CAN NABIS LICENSEE SHALL 6
EMPLOY A NEUTRAL AGE –SCREENING MECHANISM THAT VERIFIES THAT T HE USER 7
IS AT LEAST 21 YEARS OLD, INCLUDING BY USING AN AGE –GATE, AGE–SCREEN, OR 8
AGE VERIFICATION MEC HANISM. 9
(II) IF A WEBSITE IS APPRO PRIATE FOR A QUALIFY ING PATIENT 10
WHO IS UNDER THE AGE OF 21 YEARS, THE WEBSITE SHALL PR OVIDE AN 11
ALTERNATIVE SCREENIN G MECHANISM FOR THE QUALIFYING PATIENT . 12
(2) AN ADVERTISEMENT PLAC ED ON SOCIAL MEDIA O R A MOBILE 13
APPLICATION SHALL IN CLUDE A NOTIFICATION THAT AN INDIVIDUAL M UST BE AT 14
LEAST 21 YEARS OLD TO VIEW TH E CONTENT. 15
(C) THE DIVISION SHALL ADOPT REGULATIONS TO ESTAB LISH: 16
(1) PROCEDURES FOR THE E NFORCEMENT OF THIS SE CTION; AND 17
(2) A PROCESS FOR AN IND IVIDUAL TO VOLUNTARI LY SUBMIT AN 18
ADVERTISEMENT TO THE DIVISION FOR AN ADVIS ORY OPINION ON WHETH ER THE 19
ADVERTISEMENT COMPLI ES WITH THE RESTRICT IONS ON ADVERTISEMEN TS FOR 20
CANNABIS, CANNABIS PRODUCTS , EDIBLE CANNABIS PROD UCTS, AND 21
CANNABIS–RELATED SERVICES . 22
SUBTITLE 10. RESPONSIBLE VENDOR TRAINING PROGRAM. 23
36–1001. 24
(A) IF A PERSON WOULD LIK E TO TO OFFER A RESPONSIBLE MEDICAL OR 25
ADULT–USE CANNABIS VENDOR , SERVER, AND SELLER TRAINING PROGRAM, THE A 26
PERSON MUST SHALL SUBMIT AN APPLICATIO N TO THE DIVISION. 27
(B) THE DIVISION SHALL APPROV E THE APPLICATION IF THE PROPOSED 28
TRAINING PROGRAM MEE TS THE MINIMUM EDUCA TIONAL STANDARDS 29
ESTABLISHED UNDER SU BSECTION (C) OF THIS SECTION. 30
(C) AT A MINIMUM, A TRAINING PROGRAM MUST : 31
74 HOUSE BILL 556
(1) BE TAUGHT IN A CLASS ROOM OR VIRTUAL SETT ING FOR AT LEAST 1
A 2–HOUR PERIOD ; 2
(2) ESTABLISH PROGRAM ST ANDARDS, INCLUDING CERTIFICAT ION 3
AND RECERTIFICATION REQUIREMENTS , RECORD KEEPING , TESTING AND 4
ASSESSMENT PROTOCOLS , AND EFFECTIV ENESS EVALUATIONS ; AND 5
(3) PROVIDE A CORE CURRI CULUM OF RELEVANT ST ATUTORY AND 6
REGULATORY PROVISION S, WHICH SHALL INCLUDE : 7
(I) INFORMATION ON REQUI RED LICENSES , AGE 8
REQUIREMENTS , PATIENT REGISTRY CAR DS ISSUED BY THE DIVISION, 9
MAINTENANCE OF RECOR DS, PRIVACY ISSUES, AND UNLAWFUL ACTS ; 10
(II) ADMINISTRATIVE AND C RIMINAL LIABILITY AN D LICENSE 11
AND COURT SANCTIONS ; 12
(III) STATUTORY AND REGULA TORY REQUIREMENTS FO R 13
EMPLOYEES AND OWNERS ; 14
(IV) STATUTORY AND REGULA TORY REQUIREMENTS RE LATED 15
TO CANNABIS SALE, TRANSFER, AND DELIVERY ; 16
(V) ACCEPTABLE FORMS OF IDENTIFICATION , INCLUDING 17
PATIENT AND CAREGIVE R IDENTIFICATION CAR DS; 18
(VI) STATE AND LOCAL LICEN SING AND ENFORCEMENT ; AND 19
(VII) INFORMATION ON SERVI NG SIZE, THC AND CANNABINOID 20
POTENCY, AND IMPAIRMENT . 21
36–1002. 22
THE DIVISION SHALL ADOPT REGULATIONS ESTABLIS HING THE 23
RESPONSIBLE VENDOR T RAINING PROGRAM AND THE MINIMUM STANDARD S FOR 24
THE PROGRAM . 25
36–1003. 26
A PROVIDER OF AN APPRO VED TRAINING PROGRAM SHALL: 27
(1) MAINTAIN ITS TRAININ G RECORDS AT ITS PRINCIPAL PLACE OF 28
BUSINESS FOR AT LEAS T 4 YEARS; AND 29
HOUSE BILL 556 75
(2) MAKE THE RECORDS AVA ILABLE FOR INSPECTIO N BY THE 1
DIVISION. 2
SUBTITLE 11. PROHIBITED ACTS. 3
36–1101. 4
(A) A CANNABIS LICENSEE MA Y NOT SELL , TRANSFER, OR DELIVER 5
CANNABIS OR CANNABIS PRODUCTS UNLESS THE LICENSEE VERIFIES BY MEANS OF 6
A VALID DRIVER ’S LICENSE OR OTHER G OVERNMENT –ISSUED PHOTO 7
IDENTIFICATION CONTA INING THE BEARER ’S DATE OF BIRTH THAT : 8
(1) FOR ADULT–USE CANNABIS , THE CONSUMER IS AT L EAST 21 9
YEARS OLD; OR 10
(2) FOR MEDICAL CANNABIS, THE PATIENT OR CAREG IVER IS: 11
(I) REGISTERED WITH THE DIVISION; AND 12
(II) AT LEAST 18 YEARS OLD. 13
(B) (1) A LICENSEE THAT SELLS , TRANSFERS, OR DELIVERS CANNABIS OR 14
CANNABIS PRODUCTS IN VIOLATION OF SUBSECT ION (A) OF THIS SECTION IS 15
SUBJECT TO A CIVIL PEN ALTY OF: 16
(I) $500 FOR A FIRST VIOLATIO N; 17
(II) $1,000 FOR A SECOND VIOLATI ON OCCURRING WITHIN 24 18
MONTHS AFTER THE FIR ST VIOLATION; AND 19
(III) $5,000 FOR EACH SUBSEQUENT VIOLATION OCCURRING 20
WITHIN 24 MONTHS AFTER THE IMMEDIATELY PRECEDIN G VIOLATION. 21
(2) THE DIVISION MAY DENY A C ANNABIS LICENSE TO A N APPLICANT, 22
REPRIMAND A CANNABIS LICENSEE, OR SUSPEND OR REVOKE A CANNABIS LICENSE 23
IF THE APPLICANT OR LICENSEE VIOLATES SU BSECTION (A) OF THIS SECTION TWO 24
OR MORE TIMES IN A 24–MONTH PERIOD . 25
(3) IN A HEARING FOR AN A LLEGED VIOLATION OF THIS SECTION, IT 26
IS A DEFENSE THAT AN AGENT OF THE DEFENDA NT EXAMINED THE CONS UMER’S, 27
PATIENT’S, OR CAREGIVER ’S DRIVER’S LICENSE OR OTHER V ALID IDENTIFICATION 28
ISSUED BY A GOVERNME NTAL UNIT THAT POSITIVELY I DENTIFIED THE CONSUM ER, 29
PATIENT, OR CAREGIVER AS MEET ING THE MINIMUM AGE SPECIFIED IN SUBSECT ION 30
(A) OF THIS SECTION. 31 76 HOUSE BILL 556
(C) (1) A CANNABIS LICENSEE MA Y NOT: 1
(I) SELL, TRANSFER, OR DELIVER CANNABIS TO AN INDIVIDUAL 2
WHO IS VISIBLY INTOXICATED; OR 3
(II) OFFER CANNABIS OR CA NNABIS PRODUCTS AS A PRIZE, 4
PREMIUM, OR CONSIDERATION FOR A LOTTERY, CONTEST, GAME OF CHANCE , GAME 5
OF SKILL, OR COMPETITION OF AN Y KIND. 6
(2) A CANNABIS LICENSEE TH AT VIOLATES PARAGRAP H (1) OF THIS 7
SUBSECTION IS SUBJECT TO A FINE NOT EXCEEDING $1,000, SUSPENSION OR 8
REVOCATION OF A LICE NSE, OR BOTH. 9
(D) (1) A DISPENSARY MAY NOT : 10
(I) PACKAGE OR REPACKAGE CANNABIS OR CANNABIS 11
PRODUCTS; 12
(II) TRANSFORM CANNABIS O R CANNABIS PRODUCTS INTO 13
ANOTHER PRODUCT O R AN EXTRACT; OR 14
(III) WRAP, ROLL, OR OTHERWISE ENCASE CANNABIS FOR THE 15
PURPOSE OF SMOKING T HE CANNABIS. 16
(2) A DISPENSARY THAT VIOL ATES PARAGRAPH (1) OF THIS 17
SUBSECTION IS SUBJEC T TO A FINE NOT EXCE EDING $1,000, SUSPENSION OR 18
REVOCATION OF A LICE NSE, OR BOTH. 19
36–1102. 20
(A) THIS TITLE MAY NOT BE CONSTRUED TO AUTHORI ZE AN INDIVIDUAL TO : 21
(1) OPERATE, NAVIGATE, OR BE IN ACTUAL PHYS ICAL CONTROL OF A 22
MOTOR VEHICLE , AIRCRAFT, OR BOAT WHILE UNDER THE INFLUENCE OF CAN NABIS; 23
(2) USE CANNABIS IN A PU BLIC PLACE; 24
(3) USE CANNABIS IN A MO TOR VEHICLE; 25
(4) EXCEPT AS PROVIDED I N SUBSECTION (B) OF THIS SECTION , 26
SMOKE CANNABIS ON A PRIVATE PROPERTY THA T: 27
(I) 1. IS RENTED FROM A LAN DLORD; AND 28
HOUSE BILL 556 77
2. IS SUBJECT TO A POLI CY THAT PROHIBITS THE 1
SMOKING OF CANNABIS ON THE PROPERTY ; OR 2
(II) IS SUBJECT TO A POLI CY THAT PROHIBITS TH E SMOKING OF 3
CANNABIS ON THE PROP ERTY OF AN ATTACHED DWELLING ADOPTED BY ONE OF THE 4
FOLLOWING ENTITIES : 5
1. THE BOARD OF DIRECTO RS OF THE COUNCIL OF UNIT 6
OWNERS OF A CONDOMIN IUM REGIME; OR 7
2. THE GOVERNING BODY O F A HOMEOWNERS 8
ASSOCIATION; OR 9
(5) POSSESS CANNABIS , INCLUDING CANNABIS P RODUCTS, IN A 10
LOCAL DETENTION FACI LITY, COUNTY JAIL, STATE PRISON, REFORMATORY , OR 11
OTHER CORRECTIONAL FACILITY, INCLUDING A FACILITY FOR THE DETENTION OF 12
JUVENILE OFFENDERS . 13
(B) THE PROVISIONS OF SUB SECTION (A)(4) OF THIS SECTION DO N OT 14
APPLY TO VAPORIZING CANNABIS. 15
36–1103. 16
(A) (1) A PERSON MAY NOT SELL OR DISTRIBUTE A PROD UCT INTENDED 17
FOR HUMAN CO NSUMPTION OR INHALAT ION THAT CONTAINS MO RE THAN 0.5 18
MILLIGRAMS OF TETRAH YDROCANNABINOL PER S ERVING OR 2.5 MILLIGRAMS OF 19
TETRAHYDROCANNABINOL PER PACKAGE UNLESS T HE PERSON IS LICENSE D UNDER 20
§ 36–401 OF THIS TITLE AND TH E PRODUCT COMPLIES W ITH THE: 21
(I) MANUFACTURING STANDA RDS ESTABLISHED UNDE R § 22
36–203 OF THIS TITLE; 23
(II) LABORATORY TESTING S TANDARDS ESTABLISHED UNDER § 24
36–203 OF THIS TITLE; AND 25
(III) PACKAGING AND LABELI NG STANDARDS ESTABLI SHED 26
UNDER § 36–203 OF THIS TITLE. 27
(2) A PERSON MAY NOT SELL OR DISTRIBU TE A PRODUCT DESCRIB ED 28
UNDER PARAGRAPH (1) OF THIS SUBSECTION T O AN INDIVIDUAL UNDE R THE AGE OF 29
21 YEARS. 30
78 HOUSE BILL 556
(B) A PERSON MAY NOT SELL OR DISTRIBUTE A CANN ABINOID PRODUCT 1
THAT IS NOT DERIVED FROM NATURALLY OCCUR RING BIOLOGICALLY AC TIVE 2
CHEMICAL CONSTITUENT S. 3
(C) A PERSON WHO VIOLATES SUBSECTION (A) OF THIS SECTION IS G UILTY 4
OF A MISDEMEANOR AND ON CONVICTION IS SUB JECT TO A FINE NOT E XCEEDING 5
$5,000. 6
(D) A PERSON WHO VIOLATES SUBSECTION (B) OF THIS SECTION IS G UILTY 7
OF A MISDEMEANOR AND ON CONVICTION IS SUBJECT TO A FINE NO T EXCEEDING 8
$10,000. 9
SUBTITLE 12. LEGAL PROTECTIONS. 10
36–1201. 11
THE FOLLOWING PERSONS ACTING IN ACCORDANCE WITH THE PROVISIONS 12
OF THIS TITLE MAY NO T BE SUBJECT TO ARRE ST, PROSECUTION , REVOCATION OF 13
MANDATORY SUPE RVISION, PAROLE, OR PROBATION , OR ANY CIVIL OR 14
ADMINISTRATIVE PENAL TY, INCLUDING A CIVIL PE NALTY OR DISCIPLINAR Y ACTION 15
BY A PROFESSIONAL LI CENSING BOARD , OR BE DENIED ANY RIG HT OR PRIVILEGE , 16
FOR THE USE OF OR PO SSESSION OF CANNABIS THAT IS AUTHORIZED U NDER THIS 17
TITLE: 18
(1) A QUALIFYING PATIENT ; 19
(2) A CANNABIS LICENSEE OR CANNABIS REGISTRA NT THAT IS 20
LICENSED OR REGISTER ED UNDER THIS TITLE ; 21
(3) A CERTIFYING PROVIDE R; 22
(4) A CAREGIVER; 23
(5) AN ACADEMIC RESEARCH REPRESENTATIVE PURCH ASING 24
MEDICAL CANNABIS UNDER § 36–701 SUBTITLE 7 OF THIS TITLE; 25
(6) A HOSPITAL, MEDICAL FACILITY , OR HOSPICE PROGRAM W HERE A 26
QUALIFYING PATIENT I S RECEIVING TREATMEN T; OR 27
(7) DESIGNATED SCHOOL PE RSONNEL AUTHORIZED T O ADMINISTER 28
MEDICAL CANNABIS TO A STUDENT IN ACCORDANCE WITH THE GUIDELINES 29
ESTABLISHED UNDER § 7–446 OF THE EDUCATION ARTICLE UNLESS THE AC T OR 30
OMISSION CONSTITUTES GROSS NEGLIGENCE OR WANTON OR WILLFUL 31
MISCONDUCT . 32 HOUSE BILL 556 79
SUBTITLE 13. CIVIL IMMUNITIES AND LIABILITIES RESERVED. 1
36–1301. 2
(A) EXCEPT AS PROVIDED IN THIS SECT ION, NEITHER THE STATE NOR ANY 3
OF ITS POLITICAL SUB DIVISIONS MAY DENY A BENEFIT, AN ENTITLEMENT , A 4
DRIVER’S LICENSE, A PROFESSIONAL LICEN SE, HOUSING ASSISTANCE , SOCIAL 5
SERVICES, OR OTHER BENEFITS BA SED ON LAWFUL CANNAB IS USE OR FOR THE 6
PRESENCE OF CANNABIN OIDS OR CANNABINOID METABOLITES IN THE U RINE, 7
BLOOD, SALIVA, BREATH, HAIR, OR OTHER TISSUE OR F LUID OF AN INDIVIDUA L WHO 8
IS AT LEAST 21 YEARS OLD OR A QUALI FYING PATIENT WHO IS UNDER THE AGE OF 9
21 YEARS. 10
(B) AN INDIVIDUAL MAY NOT BE DENIED CUSTODY OF OR VISITATION WITH 11
A MINOR FOR ACTING I N ACCORDANCE WITH TH IS TITLE, UNLESS THE INDIVIDUA L’S 12
BEHAVIOR CREATES AN UNREASONABLE DANGER TO THE MINOR THAT CA N BE 13
CLEARLY ARTICULATED AND SUBSTANTIATED . 14
(C) EXCEPT AS PROVIDED IN THIS SECTION, NEITHER THE STATE NOR ANY 15
OF ITS POLITICAL SUB DIVISIONS MAY DENY E MPLOYMENT OR A CONTR ACT TO AN 16
INDIVIDUAL FOR A PRI OR CONVICTION FOR A NONVIOLENT CANNABIS OFFENSE 17
THAT DOES NOT INVOLV E DISTRIBUTION TO MI NORS. 18
(D) FOR THE PURPOSES OF M EDICAL CARE, INCLUDING ORGAN AND TISSU E 19
TRANSPLANTS : 20
(1) THE USE OF CANNABIS DOES NOT CONSTITUTE THE USE OF AN 21
ILLICIT SUBSTANCE OR OTHERWISE DISQUALIFY AN INDIVIDUAL FROM N EEDED 22
MEDICAL CARE ; AND 23
(2) MAY BE CONSIDERED ON LY WITH RESPECT TO E VIDENCE–BASED 24
CLINICAL CRITERIA. 25
(E) (1) THIS SECTION DOES NOT PREVENT A GOVERNMENT EMPLOYER 26
FROM DISCIPLINING AN EMPLOYEE OR A CONTRA CTOR FOR: 27
(I) INGESTING CANNABIS I N THE WORKPLACE ; OR 28
(II) WORKING WHILE IMPAIR ED BY CANNABIS . 29
(2) THE PROTECTIONS PROVI DED BY THIS SECTION DO NOT APPLY TO 30
THE EXTENT THAT THEY CONFLICT WITH A GOVE RNMENT EMPLOYER ’S 31
OBLIGATIONS UNDER FE DERAL LAW OR TO THE EXTENT THAT THEY WOU LD 32 80 HOUSE BILL 556
DISQUALIFY THE ENTIT Y FROM A MONETARY OR LICENSING–RELATED BENEFIT 1
UNDER FEDERAL LAW . 2
(3) THIS SECTION DOES NOT AUTHORIZE ANY PE RSON TO ENGAGE IN, 3
AND DOES NOT PREVENT THE IMPOSITION OF AN Y CIVIL, CRIMINAL, DISCIPLINE, OR 4
OTHER PENALTIES , INCLUDING DISCIPLINE OR TERMINATION BY A GOVERNMENT 5
EMPLOYER FOR ENGAGIN G IN ANY TASK WHILE UNDER THE INFLUENCE OF 6
CANNABIS, WHEN DOING SO WOULD CONSTITUTE NEGLIGENC E OR PROFESSIONAL 7
MALPRACTICE . 8
(F) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO PREVENT OR 9
PROHIBIT ANY EMPLOYE R FROM DENYING EMPLO YMENT OR A CONTRACT TO AN 10
INDIVIDUAL OR DISCIP LINING AN EMPLOYEE O R A CONTRACTOR FO R TESTING 11
POSITIVE FOR THE PRE SENCE OF CANNABINOID S OR CANNABINOID MET ABOLITES 12
IN THE URINE, BLOOD, SALIVA, BREATH, HAIR, OR OTHER TISSUE OR F LUID OF THE 13
EMPLOYEE’S OR CONTRACTOR ’S BODY, IF THE TEST WAS COND UCTED IN 14
ACCORDANCE WITH THE EMPLOYER’S ESTABLISHED DRUG TESTING POLI CY. 15
36–1302. 16
(A) A HOLDER OF A PROFESSI ONAL OR OCCUPATIONAL LICENSE MAY NOT 17
BE SUBJECT TO PROFES SIONAL DISCIPLINE FO R PROVIDING ADVICE O R SERVICES 18
RELATED TO CANNABIS ESTABLISHMENTS OR AP PLICATIONS TO OPERAT E 19
CANNABIS ESTABLISHME NTS ON THE BASIS THAT CA NNABIS IS ILLEGAL UN DER 20
FEDERAL LAW . 21
(B) AN APPLICANT FOR A PR OFESSIONAL OR OCCUPA TIONAL LICENSE MAY 22
NOT BE DENIED A LICE NSE BASED ON PREVIOU S EMPLOYMENT RELATED TO 23
CANNABIS ESTABLISHME NTS OPERATING IN ACC ORDANCE WITH STATE LAW. 24
36–1303. 25
AN AGENCY OR A POLITI CAL SUBDIVISION OF T HE STATE MAY NOT RELY ON A 26
VIOLATION OF FEDERAL LAW RELATED TO CANNA BIS AS THE SOLE BASI S FOR 27
TAKING AN ADVERSE AC TION AGAINST A PERSO N. 28
36–1304. 29
(A) IT IS THE PUBLIC POLI CY OF THE STATE THAT CONTRACTS RELATED TO 30
THE OPERATION OF A C ANNABIS ESTABLISHMEN T LICENSED IN ACCORD ANCE WITH 31
THIS SUBTITLE ARE EN FORCEABLE. 32
(B) IT IS THE PUBLIC POLI CY OF THE STATE THAT NO CONTRAC T ENTERED 33
INTO BY A LICENSED C ANNABIS ESTABLISHMEN T OR ITS AGENTS AS A UTHORIZED IN 34 HOUSE BILL 556 81
ACCORDANCE WITH A VALID LI CENSE, OR BY THOSE WHO ALLO W PROPERTY TO BE 1
USED BY A CANNABIS E STABLISHMENT , ITS EMPLOYEES , OR ITS AGENTS AS 2
AUTHORIZED IN ACCORD ANCE WITH A VALID LI CENSE, SHALL BE UNENFORCEAB LE 3
ON THE BASIS THAT CU LTIVATING, OBTAINING, MANUFACTURING , DISTRIBUTING, 4
DISPENSING, TRANSPORTING , SELLING, POSSESSING, OR USING CANNABIS IS 5
PROHIBITED BY FEDERA L LAW. 6
SUBTITLE 14. CAPITAL ACCESS PROGRAM. 7
36–1401. 8
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 9
INDICATED. 10
(B) “BORROWER” MEANS A BUSINESS THA T: 11
(1) QUALIFIES AS A SMALL BUSINESS UNDER THE U.S. SMALL 12
BUSINESS ADMINISTRATION SIZE S TANDARDS; 13
(2) APPLIES TO A LENDER FOR BUSINESS FINANCI NG; AND 14
(3) HAS FEWER THAN 50 EMPLOYEES. 15
(C) “DEPARTMENT ” MEANS THE DEPARTMENT OF COMMERCE. 16
(C) (D) “LENDER” MEANS: 17
(1) A CREDIT UNION , AS DEFINED IN § 1–101 OF THE FINANCIAL 18
INSTITUTIONS ARTICLE; 19
(2) A FINANCIAL INSTITUT ION, AS DEFINED IN § 1–101 OF THE 20
FINANCIAL INSTITUTIONS ARTICLE; OR 21
(3) A COMMUNITY DEVELOPMENT FINANCIA L INSTITUTION , AS 22
DEFINED IN 12 U.S.C. § 4702(5). 23
(D) (E) “PROGRAM” MEANS THE CAPITAL ACCESS PROGRAM 24
ESTABLISHED UNDER TH IS SUBTITLE. 25
36–1402. 26
THERE IS A CAPITAL ACCESS PROGRAM IN THE DEPARTMENT OF 27
COMMERCE. 28
36–1403. 29 82 HOUSE BILL 556
THE PURPOSE OF THE PROGRAM IS TO STIMULA TE OPPORTUNITIES FOR 1
SOCIAL EQUITY LICENS EES THAT HAVE DIFFIC ULTY OBTAINING FINAN CING AND TO 2
ESTABLISH A LOAN LOS S RESERVE ACCOUNT . 3
36–1404. 4
(A) A LOAN TO A SOCIAL EQU ITY LICENSEE QUALIFI ES UNDER THE 5
PROGRAM IF THE LOAN : 6
(1) SATISFIES THE LENDIN G CRITERIA OF THE FINANCIAL 7
INSTITUTION LENDER; AND 8
(2) HAS A TERM NOT EXCEE DING 10 YEARS; AND 9
(3) DOES NOT EXCEED : 10
(I) FOR A DISPENSARY , $500,000; OR 11
(II) FOR A GROWER OR PROC ESSOR, $1,000,000. 12
(B) A LOAN THAT QUALIFIES UNDER SUBS ECTION (A) OF THIS SECTION MAY 13
BE SHORT OR LONG TER M, HAVE FIXED OR VARIAB LE RATES, AND BE SECURED OR 14
UNSECURED . 15
36–1405. 16
(A) IF A LENDER WOULD LIK E TO TO PARTICIPATE IN THE PROGRAM, THE 17
LENDER MUST A LENDER SHALL ENROLL THE QUALIFYI NG LOAN IN THE PROGRAM 18
NOT MORE THAN 30 DAYS AFTER THE DATE OF THE FIRST DISBURS EMENT OF THE 19
LOAN. 20
(B) A LENDER MAY ENROLL AL L OR A PORTION OF A QUALIFYING LOAN IN 21
AN AMOUNT OF NOT MOR E THAN: 22
(1) FOR A DISPENSARY , $500,000; OR 23
(2) FOR A GROWER OR PROCESSOR, $1,000,000. 24
36–1406. 25
(A) THE DEPARTMENT SHALL ESTA BLISH A LOAN LOSS RE SERVE ACCOUNT 26
FOR A LENDER WHEN TH E LENDER ENROLLS ITS FIRST LOAN UNDER THE PROGRAM. 27
(B) AT THE TIME OF ENROLL MENT: 28 HOUSE BILL 556 83
(1) THE BORROWER SHALL M AKE A PAYMENT TO THE ACCOUNT OF 1
BETWEEN 0% AND 7% OF THE ENROLLED LOAN AMOUNT; 2
(2) THE LENDER SHALL MAK E A PAYMENT TO THE A CCOUNT OF AT 3
LEAST 2% OF THE ENROLLED AMOU NT; AND 4
(3) THE DIVISION SHALL MAKE A MATCHING PAYMENT TO THE 5
ACCOUNT IN AN AMOUNT EQUAL TO THE BORROWE R AND LENDER’S AGGREGATE 6
PAYMENT UNDER ITEMS (1) AND (2) OF THIS SUBSECTION . 7
(C) THE LOAN LOSS RESERVE ACCOUNT OF A LENDER SHALL BE AVAILABLE 8
FOR THE LENDER TO WI THDRAW IF A BORROWER DEFAULTS ON A QUALIF YING LOAN. 9
(D) THE DEPARTMENT SHALL COLL ABORATE WITH THE OFFICE OF SOCIAL 10
EQUITY ESTABLISHED UN DER § 1–309.1 OF THIS ARTICLE TO I DENTIFY AND ASSIST 11
BUSINESSES WITH OBTA INING FINANCING FROM THE PROGRAM. 12
(E) THE DEPARTMENT SHALL ESTA BLISH PROCEDURES FOR A LENDER TO 13
WITHDRAW FROM THE PROGRAM. 14
SUBTITLE 15. BANKING AND INSURANCE. 15
36–1501. 16
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 17
INDICATED. 18
(B) “CANNABIS–RELATED LEGITIMATE BUSINESS” MEANS A 19
MANUFACTURER , PRODUCER, OR ANOTHER PERSON TH AT: 20
(1) PARTICIPATES IN ANY BUSINESS OR ORGANIZE D ACTIVITY THAT 21
INVOLVES HANDLING CA NNABIS OR CANNABIS P RODUCTS, INCLUDING 22
CULTIVATING, PRODUCING, MANUFACTURING , SELLING, TRANSPORTING , 23
DISPLAYING, DISPENSING, DISTRIBUTING, OR PURCHASING CANNAB IS OR CANNABIS 24
PRODUCTS; AND 25
(2) ENGAGES IN AN ACTIVI TY DESCRIBED IN ITEM (1) OF THIS 26
SUBSECTION IN ACCORD ANCE WITH STATE LAW. 27
(C) “DEPOSITORY INSTITUTIO N” MEANS A STATE–CHARTERED OR 28
FEDERALLY CHARTERED FINANCIAL INSTITUTIO N, OTHER–STATE BANK , OR 29
FOREIGN BRANCH THAT : 30
84 HOUSE BILL 556
(1) IS LOCATED IN THE STATE OR MAINTAINS BR ANCHES IN THE 1
STATE; AND 2
(2) IS AUTHORIZED TO MAI NTAIN ACCOUNTS . 3
(C) (D) (1) “SERVICE PROVIDER ” MEANS A BUSINESS , AN 4
ORGANIZATION , OR ANY OTHER PERSON THAT: 5
(I) SELLS GOODS OR SERVI CES TO A CANNABIS –RELATED 6
LEGITIMATE BUSINESS; OR 7
(II) PROVIDES ANY BUSINES S SERVICES, INCLUDING THE SALE 8
OR LEASE OF REAL OR ANY OTHER PROPERTY , LEGAL OR OTHER LICEN SED 9
SERVICES, OR ANY OTHER ANCILLA RY SERVICE, RELATING TO CANNABIS . 10
(2) “SERVICE PROVIDER ” DOES NOT INCLUDE A B USINESS, AN 11
ORGANIZATION , OR ANY OTHER PERSON THAT PARTICIPATES IN ANY BUSINESS OR 12
ORGANIZED ACTIVITY T HAT INVOLVES HANDLIN G CANNABIS OR CANNAB IS 13
PRODUCTS, INCLUDING CULTIVATIN G, PRODUCING, MANUFACTURING , SELLING, 14
TRANSPORTING , DISPLAYING, DISPENSING, DISTRIBUTING, OR PURCHASING 15
CANNABIS OR CANNABIS PRODUC TS. 16
36–1502. 17
THE PROVISIONS IN THI S SUBTITLE APPLY TO : 18
(1) ALL BANKS, CREDIT UNIONS , AND OTHER ENTITIES O PERATING AS 19
DEPOSITORY INSTITUTI ONS IN THE STATE; AND 20
(2) INSURANCE COMPANIES AND INSURANCE PRODUC ERS 21
OPERATING IN THE STATE. 22
36–1503. 23
(A) THE STATE BANKING REGULAT OR OFFICE OF FINANCIAL REGULATION 24
MAY NOT: 25
(1) TERMINATE OR LIMIT T HE DEPOSIT INSURANCE OR SHARE 26
INSURANCE OF A DEPOS ITORY INSTITUTION UN DER THE FEDERAL DEPOSIT 27
INSURANCE ACT OR THE FEDERAL CREDIT UNION ACT, A DEPOSITORY 28
INSTITUTION OPERATIN G IN THE STATE UNDER THE FINANCIAL INSTITUTIONS 29
ARTICLE, OR TAKE ANY OTHER ADVERSE ACTION AGAINST A DEP OSITORY 30
INSTITUTION UNDER 12 U.S.C. § 1818 SOLELY BECAUSE THE D EPOSITORY 31 HOUSE BILL 556 85
INSTITUTION PROVIDES OR HAS PROVIDED FINA NCIAL SERVICES TO A 1
CANNABIS–RELATED LEGITIMATE BUSINESS OR SERVICE PROVIDER; 2
(2) PROHIBIT, PENALIZE, OR OTHERWISE DISCOUR AGE A 3
DEPOSITORY INSTITUTI ON FROM PROVIDING FI NANCIAL SERVICES TO A 4
CANNABIS–RELATED LEGITIMATE BUSINESS IN THE STATE; 5
(3) RECOMMEND , INCENTIVIZE, OR ENCOURAGE A DEPOS ITORY 6
INSTITUTION NOT TO TO NOT OFFER FINANCIAL SERV ICES TO AN ACCOUNT HOLDER , 7
OR TO DOWNGRADE OR C ANCEL THE FINANCIAL SERVICES OFFERED TO AN 8
ACCOUNT HOLDER SOLEL Y BECAUSE: 9
(I) THE ACCOUNT HOLDER I S A CANNABIS –RELATED 10
LEGITIMATE BUSINESS OR SERVICE PROVIDER, OR IS AN EMPLOYEE , OWNER, OR 11
OPERATOR OF A CANNAB IS–RELATED LEGITIMATE BUSINESS OR SERVICE 12
PROVIDER; 13
(II) THE ACCOUNT HOLDER L ATER BECOMES AN EMPL OYEE, 14
OWNER, OR OPERATOR OF A CAN NABIS–RELATED LEGITIMATE BUSINESS OR 15
SERVICE PROVIDER ; OR 16
(III) THE DEPOSITORY INSTI TUTION WAS NOT AWARE THAT THE 17
ACCOUNT HOLDER IS AN EMPLOYEE, OWNER, OR OPERATOR OF A 18
CANNABIS–RELATED LEGITIMATE BUSINESS OR SERVICE PROVIDER; 19
(4) TAKE ANY ADVERSE OR CORRECTIVE SUPERVISO RY ACTION ON A 20
LOAN MADE TO : 21
(I) A CANNABIS–RELATED LEGITIMATE BUSINESS OR SERVICE 22
PROVIDER SOLELY BECA USE THE BUSINESS IS A CANNABIS–RELATED LEGITIMATE 23
BUSINESS OR SERVICE PROVIDER; 24
(II) AN EMPLOYEE , OWNER, OR OPERATOR OF A 25
CANNABIS–RELATED LEGITIMATE BUSINESS OR SERVICE PROVIDER SOLELY 26
BECAUSE THE EMPLOYEE , OWNER, OR OPERATOR IS EMPLO YED BY, OWNS, OR 27
OPERATES A CANNABIS –RELATED LEGITIMATE BUSINESS OR SERVICE PROVIDER, AS 28
APPLICABLE; OR 29
(III) AN OWNER OR OPERATOR OF REAL ESTATE OR EQ UIPMENT 30
THAT IS LEASED TO A CANNABIS–RELATED LEGITIMATE BUSINESS OR SERVICE 31
PROVIDER SOLELY BECA USE THE OWNER OR OPE RATOR OF THE REAL ES TATE OR 32
EQUIPMENT LEASED THE EQUIPMENT OR REAL ES TATE TO A CANNABIS –RELATED 33
LEGITIMATE BUSINESS OR SERVICE PROVIDER, AS APPLICABLE; OR 34
86 HOUSE BILL 556
(5) PROHIBIT OR PENALIZE A DEPOSITORY INSTITUTION, OR AN 1
ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN ASSOCIATION WITH A 2
DEPOSITORY INSTITUTI ON, OR OTHERWISE DISCOUR AGE A DEPOSITORY 3
INSTITUTION, OR AN ENTITY PERFORM ING A FINANCIAL SERV ICE FOR OR IN 4
ASSOCIATION WITH A D EPOSITORY INSTITUTIO N, FROM ENGAGING IN A F INANCIAL 5
SERVICE FOR A CANNAB IS–RELATED LEGITIMATE BUSINESS OR SERVICE PROVIDER. 6
(B) SUBSECTION (A) OF THIS SECTION SHAL L APPLY TO AN INSTIT UTION 7
APPLYING FOR A DEPOS ITORY INSTITUTION CH ARTER TO THE SAME EX TENT AS IT 8
APPLIES TO A DE POSITORY INSTITUTION . 9
36–1504. 10
FOR THE PURPOSES OF TITLE 18 U.S.C. §§ 1956 AND 1957 AND ALL OTHER 11
PROVISIONS OF FEDERA L LAW, THE PROCEEDS FROM A TRANSACTION INVOLVIN G 12
ACTIVITIES OF A CANN ABIS–RELATED LEGITIMATE BUSINESS OR SERVICE 13
PROVIDER MAY NOT BE CONSIDERED PROCEEDS FROM AN UNLAWFUL ACT IVITY 14
SOLELY BECAUSE : 15
(1) THE TRANSACTION INVO LVES PROCEEDS FROM A 16
CANNABIS–RELATED LEGITIMATE BUSINESS OR SERVICE PROVIDER; OR 17
(2) THE TRANSACTION INVO LVES PROCEEDS FR OM: 18
(I) CANNABIS–RELATED ACTIVITIES C ONDUCTED BY A 19
CANNABIS–RELATED LEGITIMATE BUSINESS; OR 20
(II) ACTIVITIES CONDUCTED BY A SERVICE PROVIDE R. 21
36–1505. 22
(A) WITH RESPECT TO PROVI DING A FINANCIAL SER VICE TO A 23
CANNABIS–RELATED LEGITIMATE BUSINESS OR A SERVIC E PROVIDER , A 24
DEPOSITORY INSTITUTI ON, ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN 25
ASSOCIATION WITH A D EPOSITORY INSTITUTIO N, OR INSURER THAT PROV IDES A 26
FINANCIAL SERVICE TO A CANNABIS–RELATED LEGITIMATE BUSINESS OR SERVICE 27
PROVIDER, AND THE OFFICERS , DIRECTORS, AND EMPLOYEES OF THA T DEPOSITORY 28
INSTITUTION, ENTITY, OR INSURER MAY NOT B E HELD LIABLE UNDER ANY STATE 29
LAW OR REGULATION : 30
(1) SOLELY FOR PROVIDING THE FINANCIAL SERVIC E; OR 31
(2) FOR FURTHER INVESTIN G ANY INCOME DERIVED FROM THE 32
FINANCIAL SERVICE . 33 HOUSE BILL 556 87
(B) AN INSURER THAT ENGAG ES IN THE BUSINESS O F INSURANCE WITH A 1
CANNABIS–RELATED LEGITIMATE BUSINESS OR SERVICE PROVIDER OR THAT 2
OTHERWISE ENGAGES WI TH A PERSON IN A TRA NSACTION ALLOWED UND ER STATE 3
LAW RELATED TO CANNA BIS, AND THE OFFICERS, DIRECTORS, AND EMPLOYEES OF 4
THAT INSURER MAY NOT BE HELD LIABLE UNDER STATE LAW OR REGULATI ON: 5
(1) SOLELY FOR ENGAGING IN THE BUSINESS OF I NSURANCE; OR 6
(2) FOR FURTHER INVESTIN G ANY INCOME DERIVED FROM THE 7
BUSINESS OF INSURANC E. 8
(C) A DEPOSITORY INSTITUTI ON THAT HAS A LEGAL INTEREST IN THE 9
COLLATERAL FOR A LOA N OR ANOTHER FINANCI AL SERVICE PROVIDED TO AN 10
OWNER, EMPLOYEE, OR OPERATOR OF A CAN NABIS–RELATED LEGITIMATE 11
BUSINESS OR SERVICE PROVIDER, OR TO AN OWNER OR OP ERATOR OF REAL ESTAT E 12
OR EQUIPMENT THAT IS LEASED OR SOLD TO A CANNABIS–RELATED LEGITIMATE 13
BUSINESS OR SERVICE PROVIDER, MAY NOT BE SUBJECT T O CRIMINAL, CIVIL, OR 14
ADMINISTRATIVE FORFE ITURE OF THAT LEGAL INTEREST UNDER STATE LAW FOR 15
PROVIDING THE LOAN O R OTHER FINANCIAL SE RVICE. 16
36–1506. 17
(A) THIS SUBTITLE DOES NO T REQUIRE A DEPOSITO RY INSTITUTION , 18
ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN ASSOCIATION WITH A 19
DEPOSITORY INSTITUTI ON, OR INSURER TO PROVID E FINANCIAL SERVICES TO A 20
CANNABIS–RELATED LEGITIMATE BUSINESS, SERVICE PROVIDER , OR ANY OTHER 21
BUSINESS. 22
(B) THIS SUBTITLE MAY NOT BE CONSTRUED TO LIMI T OR OTHERWISE 23
RESTRICT THE GENERAL EXAMINATION , SUPERVISORY , AND ENFORCEMENT 24
AUTHORITY OF THE STATE BANKING REGULAT OR, PROVIDED THAT THE BA SIS FOR 25
ANY SUPERVISORY OR ENFORCEME NT ACTION IS NOT THE PROVISION OF FINANCI AL 26
SERVICES TO A CANNAB IS–RELATED LEGITIMATE BUSINESS OR SERVICE PROVIDER. 27
(C) THIS SUBTITLE MAY NOT BE CONSTRUED TO INTE RFERE WITH THE 28
REGULATION OF THE BU SINESS OF INSURANCE . 29
36–1507. 30
THE STATE MAY NOT COOPERA TE OR AID FEDERAL LA W ENFORCEMENT 31
AUTHORITIES ATTEMPTI NG TO PROSECUTE FINA NCIAL INSTITUTIONS T HAT ARE 32
LAWFULLY OPERATING W ITHIN THE CONFINES O F THIS SUBTITLE. 33
88 HOUSE BILL 556
Article – Tax – General 1
2–1302.2. 2
AFTER MAKING THE DIST RIBUTIONS REQUIRE D UNDER §§ 2–1301 THROUGH 3
2–1302.1 OF THIS SUBTITLE , OF THE SALES AND USE TAX COLLECTED UNDER § 4
11–104(K) OF THIS ARTICLE FROM THE SALE OF CANNABIS FROM A DISPENSARY TO 5
A CONSUMER UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 6
ARTICLE, THE COMPTROLLER SHALL DISTRIBUT E: 7
(1) TO THE CANNABIS REGULATION AND ENFORCEMENT FUND, 8
ESTABLISHED UNDER § 36–206 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 9
ARTICLE, AN AMOUNT NECESSARY TO DEFRAY THE ENTIRE COST OF THE 10
OPERATION OF THE CANNABIS REGULATION AND ENFORCEMENT DIVISION 11
ESTABLISHED UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 12
ARTICLE; 13
(2) 30% TO THE COMMUNITY REINVESTMENT AND REPAIR FUND 14
UNDER § 1–322 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE FOR 15
FISCAL YEARS 2024 THROUGH 2033; 16
(3) 1.5% TO COUNTIES AND MUNI CIPALITIES, WHICH SHALL BE 17
ALLOCATED TO EACH JU RISDICTION BASED ON THE PERCENTAGE OF RE VENUE 18
COLLECTED FROM THAT JURISDICTION; 19
(3) 1.5% OF THE REVENUE COLLE CTED IN EACH COUNTY OUTSIDE 20
THE BOUNDARIES OF A MUNICIPALITY TO THE COUNTY, TO BE USED FOR 21
BEHAVIORAL HEALTH AN D DRUG TREATMENT ; 22
(4) 1.5% OF THE REVENUE COLLE CTED IN EACH MUNICIP ALITY TO 23
THE MUNICIPALITY , TO BE USED FOR BEHAV IORAL HEALTH AND DRU G TREATMENT ; 24
(4) (5) 1.5% TO THE CANNABIS PUBLIC HEALTH FUND 25
ESTABLISHED UNDER § 13–4505 OF THE HEALTH – GENERAL ARTICLE; 26
(5) (6) FOR FISCAL YEARS 2024 THROUGH 2028, 1.5% TO THE 27
CANNABIS BUSINESS ASSISTANCE FUND ESTABLISHED UNDE R § 5–1901 OF THE 28
ECONOMIC DEVELOPMENT ARTICLE; AND 29
(6) (7) ANY BALANCE REMAININ G AFTER THE DISTRIBU TIONS 30
REQUIRED UNDER PARAG RAPHS (1) THROUGH (5) (6) OF THIS SECTION TO T HE 31
GENERAL FUND OF THE STATE. 32
2–1303. 33 HOUSE BILL 556 89
After making the distributions required under §§ 2–1301 through [2–1302.1] 1
2–1302.2 of this subtitle, the Comptroller shall pay: 2
(1) revenues from the hotel surcharge into the Dorchester County 3
Economic Development Fund established under § 10–130 of the Economic Development 4
Article; 5
(2) to the Blueprint for Maryland’s Future Fund established under § 5–206 6
of the Education Article, the following percentage of the remaining sales and use tax 7
revenues: 8
(i) for fiscal year 2023, 9.2%; 9
(ii) for fiscal year 2024, 11.0%; 10
(iii) for fiscal year 2025, 11.3%; 11
(iv) for fiscal year 2026, 11.7%; and 12
(v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and 13
(3) the remaining sales and use tax revenue into the General Fund of the 14
State. 15
11–104. 16
(K) THE SALES AND USE TAX RATE FOR THE SALE OF CANNABIS FROM A 17
DISPENSARY TO A CONS UMER UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES 18
AND CANNABIS ARTICLE IS AS FOLLOWS : 19
(1) FOR FISCAL YEAR 2024, 6%; 20
(2) FOR FISCAL YEAR 2025, 7%; 21
(3) FOR FISCAL YEAR 2026, 8%; 22
(4) FOR FISCAL YEAR 2027, 9%; AND 23
(5) FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR THEREAFTER , 24
10%. 25
11–245. 26
THE SALES AND USE TAX DOES NOT APPLY TO THE SAL E OF: 27
90 HOUSE BILL 556
(1) MEDICAL CANNABIS UND ER TITLE 36 OF THE ALCOHOLIC 1
BEVERAGES AND CANNABIS ARTICLE; OR 2
(2) CANNABIS BETWEEN CAN NABIS ESTABLISHMENTS THAT ARE 3
LICENSED UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 4
ARTICLE. 5
Article – Economic Development 6
5–1901. 7
(a) (1) In this section[,] THE FOLLOWING WORDS HAVE THE MEANINGS 8
INDICATED. 9
(2) “Fund” means the Cannabis Business Assistance Fund. 10
(3) (I) “PERSONAL NET WORTH ” MEANS THE NET VALUE OF THE 11
ASSETS OF AN INDIVID UAL REMAINING AFTER TOTAL LIABILITIES AR E DEDUCTED, 12
INCLUDING THE INDIVI DUAL’S SHARE OF ASSETS HE LD JOINTLY OR AS COM MUNITY 13
PROPERTY WITH THE IN DIVIDUAL’S SPOUSE. 14
(II) “PERSONAL NET WORTH ” DOES NOT INCLUDE : 15
1. THE INDIVIDUAL ’S OWNERSHIP INTEREST I N THE 16
APPLICANT; 17
2. THE INDIVIDUAL ’S EQUITY IN THE INDI VIDUAL’S 18
PRIMARY PLACE OF RES IDENCE; OR 19
3. THE CASH VALUE OF AN Y QUALIFIED RETIREME NT 20
SAVINGS PLANS OR IND IVIDUAL RETIREMENT A CCOUNTS. 21
(b) There is a Cannabis Business Assistance Fund. 22
(c) The purpose of the Fund is to assist small, minority –owned, and 23
women–owned businesses entering the adult–use cannabis industry. 24
(d) The Department shall administer the Fund. 25
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 26
the State Finance and Procurement Article. 27
(2) The State Treasurer shall hold the Fund separately, and the 28
Comptroller shall account for the Fund. 29
HOUSE BILL 556 91
(f) The Fund consists of: 1
(1) money appropriated in the State budget to the Fund; [and] 2
(2) REVENUE DISTRIBUTED TO THE FUND IN ACCORDANCE WI TH § 3
2–1302.2 OF THE TAX – GENERAL ARTICLE; AND 4
(3) any other money from any other source accepted for the benefit of the 5
Fund. 6
(g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only 7
for: 8
(i) grants or loans to small, minority–owned, or women–owned 9
businesses for: 10
1. license application assistance for participation in the 11
adult–use cannabis industry; 12
2. assistance with the operating or capital expenses of a 13
business participating in the adult–use cannabis industry; or 14
3. targeted training to support participation in the adult–use 15
cannabis industry; and 16
(ii) grants to historically black colleges and universities for 17
cannabis–related programs and business development organizations, including incubators, 18
to train and assist small, minority, and women business owners and entrepreneurs seeking 19
to become licensed to participate in the adult–use cannabis industry. 20
(2) The Department: 21
(i) shall prioritize awarding grants and loans in accordance with 22
paragraph (1) of this subsection to: 23
1. populations that have been historically disproportionately 24
impacted by the enforcement of laws criminalizing the use of cannabis; and 25
2. individuals who have been convicted of a violation of a law 26
criminalizing the use of cannabis; and 27
(ii) may not award grants or loans to small, minority, and women 28
business owners and entrepreneurs with a personal net worth exceeding $1,700,000. 29
(3) In order to award grants and loans in accordance with paragraph (1) of 30
this subsection, the Department shall develop partnerships with: 31
92 HOUSE BILL 556
(i) traditional minority–serving institutions in the State and 1
surrounding jurisdictions, including historically black colleges and universities; 2
(ii) trade associations representing minority and women–owned 3
businesses; and 4
(iii) the Governor’s Office of Small, Minority, and Women Business 5
Affairs. 6
(h) (1) The State Treasurer shall invest the money of the Fund in the same 7
manner as other State money may be invested. 8
(2) Any interest earnings of the Fund shall be credited to the Fund. 9
(i) Expenditures from the Fund may be made only in accordance with the State 10
budget. 11
Article – State Finance and Procurement 12
6–226. 13
(a) (2) (i) Notwithstanding any other provision of law, and unless 14
inconsistent with a federal law, grant agreement, or other federal requirement or with the 15
terms of a gift or settlement agreement, net interest on all State money allocated by the 16
State Treasurer under this section to special funds or accounts, and otherwise entitled to 17
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 18
Fund of the State. 19
(ii) The provisions of subparagraph (i) of this paragraph do not apply 20
to the following funds: 21
170. the Cannabis Public Health Fund; [and] 22
171. the Community Reinvestment and Repair Fund; 23
172. THE CANNABIS REGULATION AND ENFORCEMENT 24
FUND; AND 25
173. THE MEDICAL CANNABIS COMPASSIONATE USE 26
FUND. 27
Article – State Personnel and Pensions 28
23–201. 29
HOUSE BILL 556 93
(a) Except as provided in subsection (b) of this section, §§ 23–203 through 23–205 1
of this subtitle apply only to: 2
(13) an individual who, on and before the effective date of participation as 3
defined under § 31–101(c) of this article, is: 4
(i) a supportive service employee of the Board of Education of Kent 5
County; 6
(ii) an employee of the Town of Oakland; 7
(iii) an employee of the City of Frostburg; 8
(iv) an employee of the Town of Sykesville; or 9
(v) an employee of the Town of University Park; [and] 10
(14) an employee of the Maryland Automobile Insurance Fund on or after 11
the date that the Maryland Automobile Insurance Fund begins participation in the 12
Employees’ Pension System; AND 13
(15) THE EXECUTIVE DIRECTOR OF THE ALCOHOL, TOBACCO, AND 14
CANNABIS COMMISSION, IF THE EXECUTIVE DIRECTOR IS NOT A SWO RN POLICE 15
OFFICER WITH THE POW ERS GRANTED TO AN OF FICER OF THE FIELD 16
ENFORCEMENT DIVISION UNDER § 1–313 OF THE ALCOHOLIC BEVERAGES AND 17
CANNABIS ARTICLE. 18
26–201. 19
(a) Except as provided in subsection (b) of this section, this subtitle applies only 20
to: 21
(22) the Executive Director of the Alcohol [and], Tobacco, AND CANNABIS 22
Commission, ONLY IF THE EXECUTIVE DIRECTOR IS A SWORN P OLICE OFFICER WITH 23
THE POWERS GRANTED T O AN OFFICER OR EMPL OYEE OF THE FIELD 24
ENFORCEMENT DIVISION UNDER § 1–313 OF THE ALCOHOLIC BEVERAGES AND 25
CANNABIS ARTICLE. 26
Article – Health – General 27
13–4505. 28
(a) There is a Cannabis Public Health Fund. 29
(b) The purpose of the Fund is to provide funding to address the health effects 30
associated with the legalization of adult–use cannabis. 31 94 HOUSE BILL 556
(c) The Department shall administer the Fund. 1
(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 2
the State Finance and Procurement Article. 3
(2) The State Treasurer shall hold the Fund separately, and the 4
Comptroller shall account for the Fund. 5
(e) The Fund consists of: 6
(1) Revenue distributed to the Fund based on revenues from adult–use 7
cannabis; 8
(2) Money appropriated in the State budget to the Fund; [and] 9
(3) REVENUE DISTRIBUTED T O THE FUND IN ACCORDANCE WI TH § 10
2–1302.2 OF THE TAX – GENERAL ARTICLE; AND 11
[(3)] (4) Any other money from any other source accepted for the benefit 12
of the Fund. 13
(f) The Fund may be used only for: 14
(1) Supporting the Advisory Council in performing its duties; 15
(2) Supporting data collection and research on the effects of cannabis 16
legalization in the State; 17
(3) Providing funding for education and public awareness campaigns 18
related to cannabis use, including funding for educational programs to be used in schools; 19
(4) Supporting substance use disorder counseling and treatment for 20
individuals; 21
(5) Training and equipment for law enforcement to recognize impairments 22
due to cannabis; and 23
(6) Purchasing technology proven to be effective at measuring cannabis 24
levels in drivers. 25
(g) (1) The State Treasurer shall invest the money of the Fund in the same 26
manner as other State money may be invested. 27
(2) Any interest earnings of the Fund shall be credited to the Fund. 28
HOUSE BILL 556 95
(h) Expenditures from the Fund may be made only in accordance with the State 1
budget. 2
SECTION 5. 6. AND BE IT FURTHER ENACTED, That Article – Alcoholic 3
Beverages of the Annotated Code of Maryland be renamed to be Article – Alcoholic 4
Beverages and Cannabis. 5
SECTION 6. 7. AND BE IT FURTHER ENACTED, That: 6
(a) The transfer of the Maryland Medical Cannabis Commission personnel to the 7
Alcohol, Tobacco, and Cannabis Commission to oversee the regulation of cannabis under 8
this Act shall be conducted in a manner that will minimize the costs of the transfer and will 9
result in a more cost–efficient operation for the regulation of cannabis for the protection of 10
the public health, safety, and welfare of the State. 11
(b) The Cannabis Regulation and Enforcement Division of the Office of the 12
Executive Director of the Alcohol, Tobacco, and Cannabis Commission is the successor of 13
the Maryland Medical Cannabis Commission in matters concerning the regulation of 14
medical cannabis. 15
(c) In every law, executive order, rule, regulation, policy, or document created by 16
an official, an employee, or a unit of this State, the names and titles of those agencies and 17
officials mean the names and titles of the successor agency or official. 18
SECTION 7. 8. AND BE IT FURTHER ENACTED, That all persons who, as of June 19
30, 2023 the effective date of this Act, are merit employees or contract staff in budgeted 20
positions of the Maryland Medical Cannabis Commission and whose positions are 21
transferred to the Cannabis Regulation and Enforcement Division of the Office of the 22
Executive Director of the Alcohol, Tobacco, and Cannabis Commission to oversee, the 23
regulation of cannabis provided by this Act, are hereby transferred to the Cannabis 24
Regulation and Enforcement Division of the Office of the Executive Director of the Alcohol, 25
Tobacco, and Cannabis Commission without any change or loss of rights, pay, working 26
conditions, benefits, rights, or status, and shall retain any merit system and retirement 27
status they may have on the date of transfer. 28
SECTION 8. 9. AND BE IT FURTHER ENACTED, That the balance of the Natali e 29
M. LaPrade Medical Cannabis Fund on the date immediately preceding the date this Act 30
takes effect shall be credited to the Cannabis Regulation and Enforcement Fund, and that 31
any funds credited to the Cannabis Regulation and Enforcement Fund may be used to cover 32
the costs of implementing this Act and regulating the cannabis industry in Maryland. 33
SECTION 9. 10. AND BE IT FURTHER ENACTED, That, notwithstanding any 34
other provision of law, from the date this Act takes effect to December 31, 2023, both 35
inclusive, the Commission is exempt from procurement requirements under the State 36
Finance and Procurement Article if the procurement is for: 37
96 HOUSE BILL 556
(1) banking services for the Cannabis Regulation and Enforcement 1
Division to collect fees and tax revenue; 2
(2) banking services to help support cannabis businesses to transition from 3
an all cash system; 4
(3) a consultant to support the Cannabis Regulation and Enforcement 5
Division in the process for cannabis licensure, including services related to investigations 6
and the financial or criminal history review of applicants; and 7
(4) a consultant to provide technical assistance to social equity applicants; 8
and 9
(5) establishing a State cannabis testing laboratory at a preexisting site. 10
SECTION 10. 11. AND BE IT FURTHER ENACTED, That: 11
(a) To the extent practicable and authorized by the U.S. Constitution, a cannabis 12
licensee shall comply with the State’s Minority Business Enterprise Program. 13
(b) On or before 6 months after the issuance of a cannabis license under § 36–401 14
of the Alcoholic Beverages and Cannabis Article, the Governor’s Office of Small, Minority, 15
and Women Business Affairs, in consultation with the Office of the Attorney General and 16
the Office of Social Equity within the Alcohol, Tobacco, and Cannabis Commission and the 17
cannabis licensee, shall establish a clear plan for setting reasonable and appropriate 18
minority business enterprise participation goals and procedures for the procurement of 19
goods and services related to cannabis, including the cultivation, manufacturing, and 20
dispensing of cannabis. 21
(c) To the extent practicable, the goals and procedures specified in subsection (b) 22
of this section shall be based on the requirements of Title 14, Subtitle 3 of the State Finance 23
and Procurement Article and the regulations implementing that subtitle. 24
SECTION 11. 12. AND BE IT FURTHER ENACTED, That: 25
(a) (1) As soon as practicable after the effective date of this Act, the Cannabis 26
Regulation and Enforcement Division established under § 36–201 of the Alcoholic 27
Beverages and Cannabis Article, as enacted by Section 4 5 of this Act, shall issue a license 28
to operate as a cannabis grower under Title 36, Subtitle 4 of the Alcoholic Beverages and 29
Cannabis Article, as enacted by Section 4 5 of this Act, to one applicant five applicants that 30
is a are recognized class member members of Pigford v. Glickman, 185 F.R.D. 82 (D.D.C. 31
1999), or In Re Black Farmers Litig., 856 F. Supp. 2d 1 (D.D.C. 2011). 32
(2) An applicant awarded a license under paragraph (1) of this subsection 33
may subsequently apply for and be awarded a license to operate as a cannabis processor 34
under Title 36, Subtitle 4 of the Alcoholic Beverages and Cannabis Article, as enacted by 35
Section 4 5 of this Act. 36 HOUSE BILL 556 97
(b) Notwithstanding any other provision of law, a license issued under subsection 1
(a) of this section is in addition to and not subject to the limitations on the total number of 2
licenses that the Division may issue under Title 36, Subtitle 4 of the Alcoholic Beverages 3
and Cannabis Article, as enacted by Section 4 5 of this Act. 4
(c) If an applicant for a license to operate as a cannabis grower that is a 5
recognized class member is not awarded a license under subsection (a) of this section: 6
(1) the applicant may apply for a license in accordance with the provisions 7
of Title 36 of the Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 of 8
this Act; 9
(2) the Division shall allow the applicant to amend, if necessary, and 10
resubmit the applicant’s application or withdraw the application entirely; and 11
(3) the Division may waive the initial application fee for the applicant but 12
may charge the applicant a reasonable fee for the resubmission or an unamended or 13
amended application. 14
SECTION 13. AND BE IT FURTHER ENACTED, That: 15
(a) As soon as practicable after the effective date of this Act, the Alcohol, Tobacco, 16
and Cannabis Commission shall contract with an independent consultant to complete a 17
study on wholesale cannabis licenses. 18
(b) The study shall include: 19
(1) the costs to regulate wholesale cannabis licenses; 20
(2) whether there is market necessity for wholesale cannabis licensing; 21
(3) whether there is a need for wholesale cannabis licensing to alleviate 22
supply demand and facilitate an equitable marketplace for suppliers and retailers; and 23
(4) the approximate number of wholesale cannabis licenses appropriate for 24
the size of the marketplace in the State. 25
(c) On or before June 1, 2024, the Alcohol, Tobacco, and Cannabis Commission 26
shall submit the results of the study required under subsection (a) of this section to the 27
Governor and, in accordance with § 2–1257 of the State Government Article, the General 28
Assembly. 29
SECTION 14. AND BE IT FURTHER ENACTED, Tha t: 30
(a) The Maryland Economic Development Corporation shall identify in each of 31
the following locations a site for proposed use as incubator space, to be established in 32 98 HOUSE BILL 556
accordance with § 36–406 of the Alcoholic Beverages and Cannabis Article, as enacted by 1
Section 5 of this Act: 2
(1) Caroline County, Cecil County, Dorchester County, Kent County, 3
Queen Anne’s County, Somerset County, Talbot County, Wicomico County, or Worcester 4
County; 5
(2) Allegany County, Garrett County, or Washington County; 6
(3) Baltimore City or a beltway community located in Anne Arundel 7
County or Baltimore County; and 8
(4) a beltway community located in Montgomery County or Prince George’s 9
County. 10
(b) The site identifications shall include: 11
(1) the proposed locations for incubator spaces identified under subsection 12
(a) of this section; 13
(2) the square footage of the identified locations; and 14
(3) the estimated costs for construction or renovation of the proposed 15
location to prepare it for use as an incubator space. 16
(c) In evaluating sites for proposed use as incubator spaces, the Maryland 17
Economic Development Corporation shall consider, in addition to other appropriate 18
criteria, the suitability of converting to incubator space obsolete or underutilized 19
commercial and retail properties such as enclosed malls, big box stores, and warehouse 20
spaces. 21
(d) On or before January 1, 2024, the Maryland Economic Development 22
Corporation shall submit a report on the identified sites and the qualifying criteria required 23
by this section to the Governor and, in accordance with § 2–1257 of the State Government 24
Article, the General Assembly. 25
SECTION 15. AND BE IT FURTHER ENACTED, That: 26
(a) As soon as practicable after the effective date of this Act, the Alcohol, Tobacco, 27
and Cannabis Commission shall conduct a study on on–site consumption of cannabis and 28
cannabis products at retail premises of cannabis licensees. 29
(b) The study shall include: 30
(1) a survey of regulations and trade practices for on–site consumption of 31
cannabis and cannabis products in other states and countries; 32
HOUSE BILL 556 99
(2) authorizations and restrictions for the use of cannabis distributed at 1
cannabis premises and for the removal of unconsumed cannabis or cannabis products from 2
the premises; 3
(3) operational procedures and controls for on–site consumption premises 4
and the preparation, use, and consumption of cannabis and cannabis products; 5
(4) training requirements and safeguards for employees of premises with 6
on–site consumption of cannabis and cannabis products; and 7
(5) recommendations for policies to implement on–site consumption of 8
cannabis and cannabis products at suitable locations, including suggested legislative and 9
regulatory changes. 10
(c) The Commission may contract with an independent contractor to conduct the 11
study under this section. 12
(d) On or before June 1, 2024, the Alcohol, Tobacco, and Cannabis Commission 13
shall submit the results of the study required under subsection (a) of this section to the 14
Governor and, in accordance with § 2–1257 of the State Government Article, the General 15
Assembly. 16
SECTION 16. AND BE IT FURTHER ENACTED, That: 17
(a) The Alcohol, Tobacco, and Cannabis Commission shall study: 18
(1) types of cannabis products and cannabis–infused products that are not 19
meant to be smoked and that are available in neighboring states and other jurisdictions, 20
such as low–concentration edibles, cannabis–infused soft drinks and other beverages, and 21
related products; 22
(2) issues relating to processing, packaging, labeling, and use of these 23
cannabis products as they may be introduced into the Maryland adult–use cannabis 24
regulatory system; and 25
(3) regulatory and enforcement issues that may arise from the introduction 26
and availability of these cannabis products in Maryland. 27
(b) On or before July 1, 2024, the Commission shall submit a report, including 28
any proposed legislative or regulatory changes, to the Governor and, in accordance with § 29
2–1257 of the State Government Article, the Senate Finance Committee and the House 30
Economic Matters Committee. 31
SECTION 12. 17. AND BE IT FURTHER ENACTED, That the publisher of the 32
Annotated Code of Maryland, in consultation with and subject to the approval of the 33
Department of Legislative Services, shall correct, with no further action required by the 34
General Assembly, cross–references and terminology rendered incorrect by this Act. The 35 100 HOUSE BILL 556
publisher shall adequately describe any correction that is made in an editor’s note following 1
the section affected. 2
SECTION 13. 18. AND BE IT FURTHER ENACTED, That this Act is an emergency 3
measure, is necessary for the immediate preservation of the public health or safety, has 4
been passed by a yea and nay vote supported by three–fifths of all the members elected to 5
each of the two Houses of the General Assembly, and shall take effect from the date it is 6
enacted. 7
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.