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.
Italics indicate opposite chamber/conference committee amendments.
*hb0556*
HOUSE BILL 556
A1, J1, Q4 EMERGENCY BILL (3lr0457)
ENROLLED BILL
— Economic Matters/Finance and Budget and Taxation —
Introduced by Delegates Wilson and Atterbeary
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
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 the Maryland Cannabis 4
Administration as an independent unit of State government; establishing a 5
regulatory and licensing system for adult–use cannabis under the Commission 6
Administration; imposing the sales and use tax on the sale of adult–use cannabis at 7
certain rates in certain fiscal years at a certain rate; establishing the Office of Social 8
Equity, in the Maryland Cannabis Commission and the Advisory Board on Medical 9
and Adult–Use Cannabis, and the Social Equity Partnership Grant Fund in the 10
Commission; altering provisions of law relating to the Community Reinvestment and 11
Repair Fund; establishing the Cannabis Regulation and Enforcement Division as an 12
independent unit in the Commission; requiring the Division Administration to 13
establish and maintain a State cannabis testing laboratory; establishing the 14
Cannabis Regulation and Enforcement Fund as a special, nonlapsing fund; requiring 15 2 HOUSE BILL 556
that the investment earnings of the Cannabis Regulation and Enforcement Fund be 1
credited to the Fund; repealing certain provisions of law establishing and governing 2
the Natalie M. LaPrade Medical Cannabis Commission; requiring the Division 3
Administration, rather than the Natalie M. LaPrade Medical Cannabis Commission, 4
to take certain actions related to medical cannabis; requiring the Division 5
Administration, on or before a certain date and under certain circumstances, to 6
convert medical cannabis licenses to licenses to operate a medical and adult–use 7
cannabis business; regulating the actions that local jurisdictions political 8
subdivisions may take regarding cannabis businesses; prohibiting certain 9
individuals from taking certain actions related to cannabis licensees and registrants; 10
establishing the Medical Cannabis Compassionate Use Fund as a special, nonlapsing 11
fund; requiring that the interest earnings of the Medical Cannabis Compassionate 12
Use Fund be credited to the Fund; authorizing certain entities to register with the 13
Division Administration to purchase cannabis for research purposes; establishing 14
prohibitions related to the advertising of cannabis and cannabis products; requiring 15
a person to be approved by the Division Administration to offer a certain training 16
program; establishing certain legal protections related to the use of cannabis; 17
establishing a Capital Access Program in the Department of Commerce; establishing 18
certain prohibitions related to banking by cannabis businesses; altering certain 19
provisions of law relating to the Cannabis Business Assistance Fund; exempting the 20
Commission from State procurement requirements under certain circumstances; 21
requiring a cannabis licensee, under certain circumstances, to comply with the 22
State’s Minority Business Enterprise Program; requiring the Commission to contract 23
with an independent consultant to complete a study on wholesale cannabis licenses; 24
requiring the study to be submitted to certain persons on or before a certain date; 25
requiring the Maryland Economic Development Corporation to identify certain 26
locations and submit a certain report to the General Assembly; requiring the 27
Commission to study and report on certain matters relating to on–site consumption 28
and certain cannabis products; requiring the Administration to contract with an 29
independent consultant to complete a study on wholesale cannabis licenses; requiring 30
the study to be submitted to certain persons on or before a certain date; requiring the 31
Maryland Economic Development Corporation to identify certain locations and 32
submit a certain report to the General Assembly; requiring the Administration to 33
study and report on certain matters relating to on–site consumption; requiring that 34
certain growers be awarded certain dispensary licenses under certain circumstances; 35
and generally relating to medical and adult–use cannabis. 36
BY repealing 37
Article – Health – General 38
Section 13–3301 through 13–3316 and the subtitle “Subtitle 33. Natalie M. LaPrade 39
Medical Cannabis Commission” 40
Annotated Code of Maryland 41
(2019 Replacement Volume and 2022 Supplement) 42
BY repealing 43
Article – Health – General 44 HOUSE BILL 556 3
The subtitle designation “Subtitle 46. Community Reinvestment and Repair Fund” 1
immediately preceding Section 13–4601 2
Annotated Code of Maryland 3
(2019 Replacement Volume and 2022 Supplement) 4
(As enacted by Chapter 26 of the Acts of the General Assembly of 2022) 5
BY transferring 6
Article – Health – General 7
Section 13–4601 8
Annotated Code of Maryland 9
(2019 Replacement Volume and 2022 Supplement) 10
(As enacted by Chapter 26 of the Acts of the General Assembly of 2022) 11
to be 12
Article – Alcoholic Beverages 13
Section 1–322 14
Annotated Code of Maryland 15
(2016 Volume and 2022 Supplement) 16
BY renumbering 17
Article – Alcoholic Beverages 18
Section 1–101(d) through (y) and (z) through (ii) 19
to be Section 1–101(e) through (z) and (bb) through (kk), respectively 20
Annotated Code of Maryland 21
(2016 Volume and 2022 Supplement) 22
BY repealing and reenacting, without amendments, 23
Article – Alcoholic Beverages 24
Section 1–101(a) 25
Annotated Code of Maryland 26
(2016 Volume and 2022 Supplement) 27
BY adding to 28
Article – Alcoholic Beverages 29
Section 1–101(d) and (aa), 1–309.1, 1–309.2, and 1–323; and 36–101 through 30
36–1507 to be under the 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 1–101(g) and (r) 36
Annotated Code of Maryland 37
(2016 Volume and 2022 Supplement) 38
(As enacted by Section 4 of this Act) 39
BY repealing and reenacting, with amendments, 40
Article – Alcoholic Beverages 41 4 HOUSE BILL 556
Section 1–101(f) and (q) 1–202; and 1–302, 1–303(a), 1–304, 1–307 through 1–310, 1
and 1–313 to be under the amended subtitle “Subtitle 3. Alcohol, Tobacco, and 2
Cannabis Commission” 3
Annotated Code of Maryland 4
(2016 Volume and 2022 Supplement) 5
BY adding to 6
Article – Alcoholic Beverages 7
Section 1–309.1, 1–309.2, and 1–323; and 36–101 through 36–1507 to be under the 8
new division “Division III. Cannabis” 9
Annotated Code of Maryland 10
(2016 Volume and 2022 Supplement) 11
BY repealing and reenacting, with amendments, 12
Article – Alcoholic Beverages 13
Section 1–322 14
Annotated Code of Maryland 15
(2016 Volume and 2022 Supplement) 16
(As enacted by Section 3 of this Act) 17
BY adding to 18
Article – Tax – General 19
Section 2–1302.2, 11–104(k), and 11–245 20
Annotated Code of Maryland 21
(2022 Replacement Volume) 22
BY repealing and reenacting, with amendments, 23
Article – Tax – General 24
Section 2–1303 25
Annotated Code of Maryland 26
(2022 Replacement Volume) 27
BY repealing and reenacting, with amendments, 28
Article – Economic Development 29
Section 5–1901 30
Annotated Code of Maryland 31
(2018 Replacement Volume and 2022 Supplement) 32
BY repealing and reenacting, without amendments, 33
Article – State Finance and Procurement 34
Section 6–226(a)(2)(i) 35
Annotated Code of Maryland 36
(2021 Replacement Volume and 2022 Supplement) 37
BY repealing and reenacting, with amendments, 38
Article – State Finance and Procurement 39
Section 6–201(e) and 6–226(a)(2)(ii)170. and 171. 40 HOUSE BILL 556 5
Annotated Code of Maryland 1
(2021 Replacement Volume and 2022 Supplement) 2
BY adding to 3
Article – State Finance and Procurement 4
Section 6–226(a)(2)(ii)172. and 173. 5
Annotated Code of Maryland 6
(2021 Replacement Volume and 2022 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – State Personnel and Pensions 9
Section 23–201(a)(13) and (14) and 26–201(a)(22) 10
Annotated Code of Maryland 11
(2015 Replacement Volume and 2022 Supplement) 12
BY adding to 13
Article – State Personnel and Pensions 14
Section 23–201(a)(15) 15
Annotated Code of Maryland 16
(2015 Replacement Volume and 2022 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – Health – General 19
Section 13–4505 20
Annotated Code of Maryland 21
(2019 Replacement Volume and 2022 Supplement) 22
BY renaming 23
Article – Alcoholic Beverages 24
to be Article – Alcoholic Beverages and Cannabis 25
Annotated Code of Maryland 26
(2016 Volume and 2022 Supplement) 27
SECTION 1. BE IT ENACT ED BY THE GENERAL ASSEMBLY OF MARYLAND, 28
That Section(s) 13–3301 through 13–3316 and the subtitle “Subtitle 33. Natalie M. LaPrade 29
Medical Cannabis Commission” of Article – Health – General of the Annotated Code of 30
Maryland be repealed. 31
SECTION 2. AND BE IT FURTHER ENACTED, That the subtitle designation 32
“Subtitle 46. Community Reinvestment and Repair Fund” immediately preceding § 33
13–4601 of the Health – General Article be repealed. 34
SECTION 3. AND BE IT FURTHER ENACTED, That Section(s) 13 –4601 of Article 35
– Health – General of the Annotated Code of Maryland be transferred to be Section(s) 36
1–322 of Article – Alcoholic Beverages of the Annotated Code of Maryland. 37
6 HOUSE BILL 556
SECTION 4. AND BE IT FURTHER ENACTED, That Section(s) 1 –101(d) through 1
(y) and (z) through (ii) of Article – Alcoholic Beverages of the Annotated Code of Maryland 2
be renumbered to be Section(s) 1–101(e) through (z) and (bb) through (kk), respectively. 3
SECTION 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 4
as follows: 5
Article – Alcoholic Beverages 6
1–101. 7
(a) In this article the following words have the meanings indicated. 8
(D) (1) “CANNABIS” MEANS THE PLANT CANNABIS SATIVA L. AND ANY 9
PART OF THE PLANT , INCLUDING ALL DERIVA TIVES, EXTRACTS, CANNABINOIDS , 10
ISOMERS, ACIDS, SALTS, AND SALTS OF ISOMERS , WHETHER GROWING OR N OT, WITH 11
A DELTA–9–TETRAHYDROCANNABINOL CONCENTRATION GREATE R THAN 0.3% ON A 12
DRY WEIGHT BASIS . 13
(2) “CANNABIS” INCLUDES CANNABIS PR ODUCTS. 14
(3) “CANNABIS” DOES NOT INCLUDE HEM P OR HEMP PRODUCTS , AS 15
DEFINED IN § 14–101 OF THE AGRICULTURE ARTICLE. 16
(f) (g) “Commission” means the Alcohol [and], Tobacco, AND CANNABIS 17
Commission. 18
(q) (r) (1) “License holder” means the holder of [a] AN ALCOHOLIC BEVERAGE 19
BEVERAGES license issued or a permit granted under this article. 20
(2) “License holder” includes: 21
(i) a county liquor control board and a county dispensary; and 22
(ii) for the delivery and billing purposes of Title 2, Subtitle 3 and §§ 23
2–213 and 2–314 of this article, a corporation on behalf of which an individual has obtained 24
a license. 25
(AA) “POLITICAL SUBDIVISION ” MEANS A COUNTY OR A MUNICIPALITY. 26
1–202. 27
(a) To the extent that a statement of a general rule of law conflicts or is 28
inconsistent with an exception or a qualification applicable to a special area, particular 29
person, or set of circumstances, the exception or qualification prevails. 30
HOUSE BILL 556 7
(b) A provision in Division II of this article prevails over a conflicting or 1
inconsistent provision in Division I of this article or a provision in the Tax – General Article 2
relating to alcoholic beverages. 3
(C) A PROVISION IN DIVISION III OF THIS ARTICLE PREV AILS OVER A 4
CONFLICTING OR INCON SISTENT PROVISION IN DIVISION I OF THIS ARTICLE OR A 5
PROVISION IN THE TAX – GENERAL ARTICLE RELATING TO C ANNABIS. 6
Subtitle 3. Alcohol [and], Tobacco, AND CANNABIS Commission. 7
1–302. 8
There is an Alcohol [and], Tobacco, AND CANNABIS Commission. 9
1–303. 10
(a) (1) The Commission consists of [five] SEVEN members to be appointed by 11
the Governor with the advice and consent of the Senate. 12
(2) The presiding officer of either House of the General Assembly may 13
recommend to the Governor a list of individuals for appointment to the Commission. 14
(3) Of the Commission members: 15
(i) one shall be knowledgeable and experienced in public health 16
matters; 17
(ii) one shall be knowledgeable and experienced in law enforcement 18
matters; 19
(iii) one shall be knowledgeable and experienced in the alcoholic 20
beverages industry; [and] 21
(IV) TWO SHALL BE KNOWLED GEABLE AND EXPERIENC ED IN 22
THE CANNABIS INDUSTR Y ONE SHALL HAVE EXPER TISE IN CANNABIS RES EARCH AND 23
POLICY; 24
(V) ONE SHALL HAVE EXPER TISE IN ALCOHOL AND TOBACCO 25
POLICY; AND 26
[(iv)] (V) (VI) two shall be members of the public who ar e 27
knowledgeable and experienced in fiscal matters and shall have substantial experience: 28
1. as an executive with fiduciary responsibilities in charge of 29
a large organization or foundation; 30
8 HOUSE BILL 556
2. in an academic field relating to finance or economics; or 1
3. as an accountant, an economist, or a financial analyst. 2
(4) In addition to the members appointed under paragraph (3) of this 3
subsection, the Secretary of Health and the Secretary of State Police, or their designees, 4
may participate in the Commission as ex officio nonvoting members. 5
1–304. 6
(a) A member of the Commission may not: 7
(1) have a direct or indirect financial interest, ownership, or management, 8
including holding any stocks, bonds, or other similar financial interests, in the alcohol [or], 9
tobacco, OR CANNABIS industries; 10
(2) have an official relationship to a person who holds a license or permit 11
under this article or Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation 12
Article; 13
(3) be an elected official; 14
(4) receive or share in, directly or indirectly, the receipts or proceeds of any 15
activities conducted in the alcohol [or], tobacco, OR CANNABIS industries; 16
(5) have a beneficial interest in any contract for the manufacture or sale of 17
any device or product or the provision of any independent consulting services in connection 18
with a holder of a license or permit issued under this article or Title 16, Title 16.5, Title 19
16.7, or Title 16.9 of the Business Regulation Article; or 20
(6) accept a contribution of money or property worth at least $100 from an 21
entity or individual associated with the alcohol [or], tobacco, OR CANNABIS industries with 22
respect to the regulation of alcohol [or], tobacco, OR CANNABIS. 23
(b) A member of the Commission shall file a financial disclosure statement with 24
the State Ethics Commission in accordance with Title 5, Subtitle 6 of the General 25
Provisions Article. 26
1–307. 27
(a) The Commission has the powers and duties set forth in this section. 28
(b) The Commission shall: 29
(1) educate the public, by resource sharing and serving as an information 30
clearinghouse, on such topics as: 31 HOUSE BILL 556 9
(i) recent increases in alcohol content for popular beer and other 1
beverages; 2
(ii) the proper limits of drinking for adults; 3
(iii) the adverse consequences of surpassing those limits; 4
(iv) parental or adult responsibility for serving alcohol to underage 5
individuals; and 6
(v) comparable topics relating to smoking, vaping, tobacco, other 7
tobacco products, [and] electronic nicotine delivery systems, CANNABIS, AND CANNABIS 8
PRODUCTS; and 9
(2) subject to federal approval, ensure that all alcoholic beverages sold in 10
the State with an alcohol content exceeding 4.5% by volume bear a large and conspicuous 11
label stating the percentage of alcohol content. 12
(c) (1) The Commission shall conduct studies of: 13
(i) the operation and administration of similar laws in other states 14
or countries; and 15
(ii) federal laws that may affect the operation of the alcohol [or], 16
tobacco, OR CANNABIS industries, the literature on those industries, and the reaction of 17
residents of the State to existing and potential features of those industries. 18
(2) The Commission shall submit to the Governor and, in accordance with 19
§ 2–1257 of the State Government Article, the General Assembly the studies required under 20
this subsection. 21
1–308. 22
The Commission shall develop best practices for: 23
(1) the dedication of a minimum effective portion of the budget of a local 24
licensing board to administrative enforcement activities, such as inspections, compliance 25
checks, overservice, operations, and trade practice violations; 26
(2) the carrying out of compliance checks for alcoholic beverages licenses, 27
in which each license is checked at least once a year; 28
(3) the development of guidelines for the minimum capacity of inspections 29
carried out by inspectors of local licensing boards, based on the number and type of licensed 30
outlets in the licensing jurisdiction; 31 10 HOUSE BILL 556
(4) ensuring that alcoholic beverages inspections be based on data such as 1
the violation history of the license holder, and calls for emergency assistance, emergency 2
medical service, or nonemergency service, so that resources are being allocated based on 3
where the greatest need is; 4
(5) the reporting of aggregate data between local police and local licensing 5
boards; 6
(6) the development of mandatory State–provided training for liquor 7
inspectors; 8
(7) reporting by the State to the affected local licensing board of a 9
State–issued license or permit within 10 days after the State receives an application; 10
(8) the development of a public health impact statement for all changes to 11
the State alcoholic beverages laws; [and] 12
(9) ensuring that: 13
(i) all license holders, managers, and servers receive certification 14
from an approved alcohol awareness program; and 15
(ii) at least one employee who is certified in an alcohol awareness 16
program be on the licensed premises at all times when alcoholic beverages are served; 17
(10) REGULATING THE CANNA BIS INDUSTRY AND IMPLEMENTING 18
PUBLIC HEALTH MEASUR ES RELATING TO CANNA BIS; AND 19
(11) REGULATING , TO THE EXTENT POSSIB LE, MEDICAL AND 20
ADULT–USE CANNABIS IN A SI MILAR MANNER . 21
1–309. 22
(a) With the advice and consent of the Senate, the Governor shall appoint an 23
Executive Director of the Commission. 24
(b) The Executive Director serves at the pleasure of the Governor. 25
(c) The Executive Director shall: 26
(1) have the training and experience, including knowledge of the Maryland 27
alcohol, TOBACCO, AND CANNABIS regulatory system, that is needed to direct the work of 28
the Commission; AND 29
HOUSE BILL 556 11
(2) be a sworn police officer with the powers granted to an officer or 1
employee of the Field Enforcement Division under § 1–313 of this subtitle; and 2
(3) devote full time to the duties of office and may not engage in another 3
profession or occupation. 4
(d) THE EXECUTIVE DIRECTOR MAY BE A SWO RN POLICE OFFICER WI TH 5
THE POWERS GRANTED T O AN OFFICER OR EMPL OYEE OF THE FIELD 6
ENFORCEMENT DIVISION UNDER § 1–313 OF THIS SUBTITLE. 7
(E) The Executive Director is entitled to the salary provided in the State budget. 8
1–309.1. 9
(A) (1) THERE IS AN OFFICE OF SOCIAL EQUITY WITHIN IN THE 10
COMMISSION. 11
(2) THE OFFICE IS AN INDEPEND ENT OFFICE THAT FUNC TIONS 12
WITHIN THE MARYLAND CANNABIS ADMINISTRATION . 13
(B) (1) THE GOVERNOR SHALL APPOIN T AN EXECUTIVE DIRECTOR OF 14
THE OFFICE OF SOCIAL EQUITY. 15
(2) THE EXECUTIVE DIRECTOR OF THE OFFICE OF SOCIAL EQUITY 16
SHALL HAVE AT LEAST 5 YEARS OF EXPERIENCE IN CIVIL RIGHTS ADVO CACY, CIVIL 17
RIGHTS LITIGATION, OR ANOTHER AREA OF S OCIAL JUSTICE. 18
(C) THE OFFICE OF SOCIAL EQUITY MAY EMPLOY STA FF AND RETAIN 19
CONTRACTORS AS MAY B E REQUIRED TO CARRY OUT THE FUNCTIONS OF THE 20
OFFICE. 21
(D) THE OFFICE OF SOCIAL EQUITY SHALL: 22
(1) PROMOTE AND ENCOURAG E FULL PARTICIPATION IN THE 23
REGULATED CANNABIS I NDUSTRY BY PEOPLE FR OM COMMUNITIES THAT HAVE 24
PREVIOUSLY BEEN DISP ROPORTIONATELY HARMED IMPACTED BY THE WAR ON 25
DRUGS IN ORDER TO PO SITIVELY IMPACT THOS E COMMUNITIES ; 26
(2) CONSULT WITH AND ASS IST THE COMPTROLLER IN THE 27
ADMINISTRATION OF TH E COMMUNITY REINVESTMENT AND REPAIR FUND UNDER 28
§ 1–322 OF THIS SUBTITLE ; 29
12 HOUSE BILL 556
(3) CONSULT WITH AND ASS IST THE DEPARTMENT OF COMMERCE IN 1
THE ADMINISTRATION O F THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 2
5–1901 OF THE ECONOMIC DEVELOPMENT ARTICLE; 3
(4) IDENTIFY AND OPPOSE REGULATIONS THAT UNN ECESSARILY 4
BURDEN OR UNDERMINE THE LEGISLATIVE INTE NT OF THE OFFICE, INCLUDING 5
REGULATIONS THAT IMP OSE UNDUE RESTRICTIO NS OR FINANCIAL REQU IREMENTS; 6
(5) PROVIDE RECOMMENDATI ONS TO THE COMMISSION ON 7
REGULATIONS RELATED TO: 8
(I) DIVERSITY; AND 9
(II) SOCIAL EQUITY APPLIC ATIONS; 10
(6) WORK WITH THE COMMISSION CANNABIS REGULATION AND 11
ENFORCEMENT DIVISION MARYLAND CANNABIS ADMINISTRATION TO IMPLEMENT 12
FREE TECHNICAL ASSIS TANCE FOR SOCIA L EQUITY AND MINORIT Y CANNABIS 13
BUSINESS APPLICANTS ; 14
(7) PRODUCE REPORTS AND RECOMMENDATIONS ON D IVERSITY AND 15
EQUITY IN OWNERSHIP , MANAGEMENT , AND EMPLOYMENT IN TH E LEGAL CANNABIS 16
ECONOMY; AND 17
(8) ASSIST BUSINESSES WI TH OBTAINING FINANCI NG THROUGH THE 18
CAPITAL ACCESS PROGRAM UNDER TITLE 36, SUBTITLE 14 OF THIS ARTICLE; AND 19
(9) DETERMINE WHICH INDI VIDUALS AND ENTITIES SHALL BE 20
GRANTED LOANS OR GRA NTS FROM THE CANNABIS BUSINESS ASSISTANCE FUND 21
UNDER § 5–1901 OF THE ECONOMIC DEVELOPMENT ARTICLE. 22
(E) (1) ON OR BEFORE MARCH 1 EACH YEAR, THE OFFICE OF SOCIAL 23
EQUITY SHALL PRODUCE AND MAKE PUBLICLY AV AILABLE A REPORT ON HOW THE 24
FUNDS IN THE COMMUNITY REINVESTMENT AND REPAIR FUND UNDER § 1–322 OF 25
THIS SUBTITLE AND THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 5–1901 26
OF THE ECONOMIC DEVELOPMENT ARTICLE WERE WAS ALLOCATED DURING THE 27
IMMEDIATELY PRECEDIN G CALENDAR YEAR . 28
(2) THE REPORT SHALL ALSO BE SUBMITTED TO THE GENERAL 29
ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 30
(F) (1) ON OR BEFORE NOVEMBER 1 EACH YEAR, THE OFFICE OF SOCIAL 31
EQUITY SHALL SOLICIT PUBLIC INPUT ON THE USES OF THE FUNDS IN THE 32
COMMUNITY REINVESTMENT AND REPAIR FUND UNDER § 1–322 OF THIS SUBTITLE 33 HOUSE BILL 556 13
AND THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 5–1901 OF THE 1
ECONOMIC DEVELOPMENT ARTICLE. 2
(2) ON OR BEFORE DECEMBER 15 EACH YEAR, THE OFFICE OF 3
SOCIAL EQUITY SHALL PUBLISH A REVIEW OF THE INPU T RECEIVED UNDER 4
PARAGRAPH (1) OF THIS SUBSECTION O N A PUBLICLY ACCESSI BLE PART OF THE 5
COMMISSION’S WEBSITE. 6
1–309.2. 7
(A) IN THIS SECTION, “ADVISORY BOARD” MEANS THE ADVISORY BOARD 8
ON MEDICAL AND ADULT–USE CANNABIS. 9
(B) THERE IS AN ADVISORY BOARD ON MEDICAL AND ADULT–USE 10
CANNABIS. 11
(C) THE ADVISORY BOARD SHALL: 12
(1) CONSIDER ALL MATTERS SUBMITTED TO IT BY T HE COMMISSION, 13
THE GOVERNOR, THE CANNABIS REGULATION AND ENFORCEMENT DIVISION 14
MARYLAND CANNABIS ADMINISTRATION , OR THE GENERAL ASSEMBLY; AND 15
(2) ON ITS OWN INITIATIV E, PROVIDE RECOMMENDATI ONS TO THE 16
COMMISSION OR THE CANNABIS REGULATION AND ENFORCEMENT DIVISION 17
MARYLAND CANNABIS ADMINISTRATION ESTABLISHED UNDER § 36–201 OF THIS 18
ARTICLE REGARDING GU IDELINES, RULES, AND REGULATIONS THAT THE ADVISORY 19
BOARD CONSIDERS IMPOR TANT OR NECESSARY FO R REVIEW AND CONSIDE RATION 20
BY THE COMMISSION OR THE CANNABIS REGULATION AND ENFORCEMENT 21
DIVISION MARYLAND CANNABIS ADMINISTRATION . 22
(D) THE ADVISORY BOARD CONSISTS OF : 23
(1) THE DIRECTOR OF THE CANNABIS REGULATION AND 24
ENFORCEMENT DIVISION MARYLAND CANNABIS ADMINISTRATION , WHO SHA LL 25
SERVE AS CHAIR OF THE ADVISORY BOARD; AND 26
(2) THE FOLLOWING MEMBER S, APPOINTED BY THE GOVERNOR WITH 27
THE ADVICE AND CONSE NT OF THE SENATE: 28
(I) THREE MEMBERS THAT H AVE SUBSTANTIAL EXPE RIENCE IN 29
ONE OR MORE OF THE F OLLOWING: 30
1. CANNABIS LAW , SCIENCE, OR POLICY; 31
14 HOUSE BILL 556
2. PUBLIC HEALTH OR HEA LTH CARE; 1
3. AGRICULTURE ; 2
4. FINANCE; OR 3
5. ADDICTION TREATMENT ; 4
(II) ONE ACADEMIC RESEARC HER WITH AT LEAST 5 YEARS OF 5
EXPERIENCE IN SOCIAL OR HEALTH EQUITY ; 6
(III) ONE REPRESENTATIVE O F AN INDEPENDENT TES TING 7
LABORATORY REGISTERE D UNDER § 36–408 OF THIS ARTICLE; 8
(IV) THREE TWO REPRESENTATIVES WHO HOLD A STANDARD 9
GROWER, PROCESSOR, OR DISPENSARY LICENSE UNDER § 36–401 OF THIS ARTICLE; 10
(V) TWO REPRESENTATIVES WHO HOLD A STANDARD 11
PROCESSOR LICENSE UN DER § 36–401 OF THIS ARTICLE; 12
(VI) TWO REPRESENTATIVES WHO HOLD A STANDARD 13
DISPENSARY LICENSE U NDER § 36–401 OF THIS ARTICLE; 14
(V) (VII) THREE TWO REPRESENTATIVES WHO HOLD A MICRO 15
GROWER, PROCESSOR, OR DISPENSARY LICENSE UNDER § 36–401 OF THIS ARTICLE; 16
(VIII) TWO REPRESENTATIVES WHO HOLD A MICRO PRO CESSOR 17
LICENSE UNDER § 36–401 OF THIS ARTICLE; 18
(IX) TWO REPRESENTATIVES WHO HOLD A MICRO DIS PENSARY 19
LICENSE UNDER § 36–401 OF THIS ARTICLE; 20
(X) ONE REPRESENTATIVE WHO H OLDS AN INCUBATOR SP ACE 21
LICENSE UNDER § 36–401 OF THIS ARTICLE; 22
(XI) ONE REPRESENTATIVE W HO HOLDS AN ON –SITE 23
CONSUMPTION LICENSE UNDER § 36–401 OF THIS ARTICLE; 24
(VI) (XII) ONE REPRESENTATIVE O F AN ORGANIZATION TH AT 25
ADVOCATES ON BEHALF OF PATIENTS W HO ENGAGE IN THE MED ICAL USE OF 26
CANNABIS; 27
HOUSE BILL 556 15
(VII) (XIII) ONE REPRESENTATIVE O F AN ORGANIZATION TH AT 1
ADVOCATES ON BEHALF OF CONSUMERS WHO ENG AGE IN THE ADULT USE OF 2
CANNABIS; AND 3
(VIII) (XIV) ONE HEALTH CARE PROV IDER WHO IS REGIS TERED 4
TO CERTIFY PATIENTS TO OBTAIN MEDICAL CA NNABIS UNDER § 36–301 OF THIS 5
ARTICLE. 6
(E) THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE 7
MAY RECOMMEND TO THE GOVERNOR A LIST OF IN DIVIDUALS FOR APPOIN TMENT 8
TO THE ADVISORY BOARD. 9
(F) (1) THE TERM OF A MEMBER OF TH E ADVISORY BOARD IS 4 YEARS. 10
(2) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL 11
A SUCCESSOR IS APPOI NTED AND QUALIFIES . 12
(3) AN APPOINTED MEMBER M AY NOT SERVE MORE TH AN TWO FULL 13
TERMS. 14
(4) THE POSITIONS FOR MEM BERS APPOINTED UNDER SUBS ECTION 15
(D)(2)(VII) THROUGH (XI) OF THIS SECTION BECO ME EFFECTIVE WHEN TH E FIRST 16
LICENSES ARE ISSUED UNDER THOSE RESPECTI VE LICENSE TYPES . 17
(G) AN APPOINTED MEMBER O F THE ADVISORY BOARD MUST BE : 18
(1) AT LEAST 25 YEARS OLD; 19
(2) A RESIDENT OF THE STATE WHO HAS RESIDED IN THE STATE FOR 20
AT LEAST THE IMMEDIA TELY PRECEDING 5 YEARS BEFORE THE APP OINTMENT; AND 21
(3) A REGISTERED VOTER O F THE STATE. 22
(H) THE ADVISORY BOARD SHALL ESTABLISH AT LEAST TWO 23
SUBCOMMITTEES TO FOC US ON MEDICAL AN D ADULT–USE CANNABIS. 24
(I) TO THE EXTENT PRACTIC ABLE AND CONSISTENT WITH FEDERAL AND 25
STATE LAW, THE MEMBERSHIP OF TH E ADVISORY BOARD SHALL REFLECT T HE 26
RACIAL, ETHNIC, AND GENDER DIVERSITY OF THE STATE. 27
1–310. 28
The Executive Director and all employees in the Office of the Executive Director may 29
not accept a contribution of money or property worth at least $100 from an entity or 30 16 HOUSE BILL 556
individual associated with the alcohol [or], tobacco, OR CANNABIS industries with respect 1
to regulation of alcohol [or], tobacco, OR CANNABIS. 2
1–313. 3
(a) There is a Field Enforcement Division in the Office of the Executive Director. 4
(b) (1) The Field Enforcement Division may employ officers and employees as 5
provided in the State budget. 6
(2) The officers and employees of the Field Enforcement Division: 7
(i) shall be sworn police officers; 8
(ii) shall have the powers, duties, and responsibilities of peace 9
officers to enforce the provisions of this article relating to: 10
1. the unlawful importation of alcoholic beverages [and], 11
tobacco, AND CANNABIS into the State; 12
2. the unlawful manufacture of alcoholic beverages [and], 13
tobacco, AND CANNABIS in the State; 14
3. the transportation and distribution throughout the State 15
of alcoholic beverages [and], tobacco, AND CANNABIS that are manufactured illegally and 16
on which any alcoholic beverages taxes [or], tobacco taxes, OR CANNABIS TAXES imposed 17
by the State are due and unpaid; and 18
4. the manufacture, sale, barter, tr ansportation, 19
distribution, or other form of owning, handling, or dispersing alcoholic beverages [or], 20
tobacco, OR CANNABIS by any person not licensed or authorized under this article, 21
provisions of the Tax – General Article relating to alcoholic beverages [or], tobacco, OR 22
CANNABIS, or provisions of the Business Regulation Article relating to tobacco OR 23
CANNABIS; and 24
(iii) may make cooperative arrangements for and work and cooperate 25
with the Office of the Comptroller, local State’s Attorneys, sheriffs, bailiffs, police, and other 26
prosecuting and peace officers to enforce this article. 27
(c) The Field Enforcement Division: 28
(1) shall consult with and advise the local State’s Attorneys and other law 29
enforcement officials and police officers regarding enforcement problems in their respective 30
jurisdictions; and 31
HOUSE BILL 556 17
(2) may recommend changes to improve the administration of this article, 1
provisions of the Tax – General Article relating to alcoholic beverages [and], tobacco, AND 2
CANNABIS, and provisions of the Business Regulation Article relating to tobacco. 3
1–322. 4
(a) (1) There is a Community Reinvestment and Repair Fund. 5
(2) The purpose of the Fund is to provide funds to community–based 6
organizations that serve communities determined by THE OFFICE OF SOCIAL EQUITY, 7
IN CONSULTATION WITH the Office of the Attorney General, to have been the most 8
impacted by disproportionate enforcement of the cannabis prohibition before July 1, 2022. 9
(3) The Comptroller shall administer the Fund. 10
(4) (i) The Fund is a special, nonlapsing fund that is not subject to § 11
7–302 of the State Finance and Procurement Article. 12
(ii) The State Treasurer shall hold the Fund separately, and the 13
Comptroller shall account for the Fund. 14
(5) The Fund consists of: 15
(i) [Revenue distributed to the Fund that is at least 30% of the 16
revenues from adult–use cannabis] SALES AND USE TAX RE VENUE DISTRIBUTED TO 17
THE FUND UNDER § 2–1302.2 OF THE TAX – GENERAL ARTICLE; 18
(ii) [Licensing] CONVERSION fees paid by [dual–licensed cannabis 19
establishments] BUSINESSES UNDER § 36–403 OF THIS ARTICLE ; and 20
(iii) [Any] ANY other money from any other source accepted for the 21
benefit of the Fund, in accordance with any conditions adopted by the Comptroller for the 22
acceptance of donations or gifts to the Fund. 23
(6) (i) The Fund may be used only for: 24
1. [Funding] FUNDING community–based initiatives 25
intended to benefit low–income communities; 26
2. [Funding] FUNDING community–based initiatives that 27
serve [communities disproportionately harmed by the cannabis prohibition and 28
enforcement] DISPROPORTIONATELY I MPACTED AREAS , AS DEFINED IN § 36–101 OF 29
THIS ARTICLE; and 30
3. [Any] ANY related administrative expenses. 31 18 HOUSE BILL 556
(ii) Money may not be expended from the Fund for law enforcement 1
agencies or activities. 2
(iii) Money expended from the Fund is supplemental to and may not 3
supplant funding that otherwise would be appropriated for preexisting local government 4
programs. 5
(7) The State Treasurer shall invest the money of the Fund in the same 6
manner as other State money may be invested. 7
(8) No part of the Fund may revert or be credited to: 8
(i) [The] THE General Fund of the State; or 9
(ii) [Any] ANY other special fund of the State. 10
(9) The Comptroller shall pay out money from the Fund. 11
(10) The Fund is subject to audit by the Office of Legislative Audits as 12
provided for in § 2–1220 of the State Government Article. 13
(b) (1) The BASED ON THE PERCENTA GE ALLOCABLE TO EACH COUNTY 14
DETERMINED BY THE OFFICE OF SOCIAL EQUITY AND REPORTED BY THE OFFICE TO 15
THE COMPTROLLER ON OR BEF ORE JULY 31 EACH YEAR, THE Comptroller shall 16
distribute funds from the Fund to each county in an amount that, for the period from July 17
1, 2002, to [June 30, 2022] JANUARY 1, 2023, both inclusive, is proportionate to the total 18
number of [cannabis arrests POSSESSION CHARGES in the county compared to the total 19
number of cannabis arrests POSSESSION CHARGES in the State] INDIVIDUALS 20
RESIDING IN THE COUNTY WHO WE RE CHARGED WITH A CA NNABIS CRIME 21
COMPARED TO THE TOTAL NUMBER OF INDI VIDUALS CHARGED WITH CANNABIS 22
CRIMES IN THE STATE. 23
(2) (i) Subject to the limitations under subsection (a)(6) of this section, 24
each county shall adopt a law establishing the purpose for which money received from the 25
Fund may be used. 26
(ii) On or before December 1 every 2 years, beginning in 2024, each 27
local jurisdiction POLITICAL SUBDIVISIO N THAT RECEIVES FUND S FROM THE FUND 28
UNDER PARAGRAPH (1) OF THIS SUBSECTION shall submit a report to the Governor and, 29
in accordance with § 2–1257 of the State Government Article, the Senate Budget and 30
Taxation Committee[, the Senate Finance Committee, the House Judiciary Committee, and 31
the House Health and Government Operations Committee ] AND THE HOUSE 32
APPROPRIATIONS COMMITTEE on how funds received from the Fund were spent during 33
the immediately preceding 2 fiscal years. 34 HOUSE BILL 556 19
1–323. 1
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2
INDICATED. 3
(2) “ADMINISTRATION ” HAS THE MEANING STAT ED IN § 36–101 OF 4
THIS ARTICLE. 5
(2) (3) “CANNABIS LICENSEE ” HAS THE MEANING STAT ED IN § 6
36–101 OF THIS ARTICLE. 7
(3) “DIVISION” HAS THE MEANING STAT ED IN § 36–101 OF THIS 8
ARTICLE. 9
(4) “GRANT PROGRAM” MEANS THE SOCIAL EQUITY PARTNERSHIP 10
GRANT PROGRAM. 11
(5) “OFFICE” MEANS THE OFFICE OF SOCIAL EQUITY. 12
(5) (6) (I) “QUALIFYING PARTNERSHI P” MEANS A MEANINGFUL 13
PARTNERSHIP BETWEEN AN OPERATIONAL CANNA BIS LICENSEE AND A S OCIAL 14
EQUITY LICENSEE THAT : 15
1. SUPPORTS OR ADVISES THE SOCIAL EQUITY 16
LICENSEE; AND 17
2. IS AUTHORIZED BY THE COMMISSION 18
ADMINISTRATION . 19
(II) “QUALIFYING PARTNERSHI P” INCLUDES A PARTNERSH IP 20
THROUGH WHICH THE OP ERATIONAL CANNABIS L ICENSEE PROVIDES ANY OF THE 21
FOLLOWING TO A SOCIA L EQUITY LICENSEE : 22
1. TRAINING; 23
2. MENTORSHIP ; OR 24
3. SHARED COMMERC IAL SPACE OR EQUIPME NT. 25
(6) (7) “SOCIAL EQUITY LICENSE E” MEANS A SOCIAL EQUIT Y 26
APPLICANT, AS DEFINED HAS THE MEANING STAT ED IN § 36–101 OF THIS ARTICLE, 27
WHO HAS BEEN AWARDED A CANNABIS LICENSE OR CANNABIS REGISTRATIO N. 28
20 HOUSE BILL 556
(B) (1) THERE IS A SOCIAL EQUITY PARTNERSHIP GRANT PROGRAM IN 1
THE COMMISSION OFFICE. 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 PARAMET ERS 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 PART NERSHIPS. 11
(3) (I) THE COMMISSION OFFICE MAY APPROVE QUALIFYI NG 12
PARTNERSHIPS WHERE A COST OR OTHER FEE IS IMPOSED BY AN OPERAT IONAL 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 RE NT OF FACILITIES OR EQUIPMENT. 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 LICENS EE. 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 ADMINISTRATION UNDER § 36–401(B)(1)(II) OF 25
THIS ARTICLE, THE TOTAL AWARD AMOUNT OF ANY GRANTS FROM THE COMMISSION 26
ISSUED BY THE 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 HOUSE BILL 556 21
(F) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER , THE 1
GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDGET BI LL AN APPROPRIATION 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 APPLICAT ION 7
REQUIREMENTS ; 8
(4) ESTABLISH A PROCESS FOR REVIEWING GRANT APPLICATIONS 9
AND AWARDING GRANTS TO SOCIAL EQUITY OPERATIONAL CANNABIS LICENSEES; 10
AND 11
(5) SPECIFY CRITERIA AND PROCEDURES TO MONITO R ELIGIBILITY 12
FOR THE GRANTS AUTHO RIZED UNDER THIS SEC TION. 13
TITLE 34. RESERVED. 14
TITLE 35. RESERVED. 15
DIVISION III. CANNABIS. 16
TITLE 36. MEDICAL AND ADULT–USE CANNABIS. 17
SUBTITLE 1. DEFINITIONS. 18
36–101. 19
(A) IN THIS TITLE THE FOLLOW ING WORDS HAVE THE M EANINGS 20
INDICATED. 21
(B) “ACADEMIC RESEARCH REP RESENTATIVE ” MEANS AN INDIVIDUAL WHO 22
IS: 23
(1) AN EMPLOYEE OR AGENT OF AN INSTITUTION OF HIGHER 24
EDUCATION, A RELATED MEDICAL FA CILITY, OR AN AFFILIATED BIO MEDICAL 25
RESEARCH FIRM THAT F ILED A REGISTRATION WITH THE DIVISION 26
ADMINISTRATION UNDER § 36–701 OF THIS TITLE; AND 27
22 HOUSE BILL 556
(2) AUTHORIZED TO PURCHA SE MED ICAL CANNABIS FOR TH E 1
INSTITUTION OF HIGHE R EDUCATION, RELATED MEDICAL FACI LITY, OR AFFILIATED 2
BIOMEDICAL RESEARCH FIRM. 3
(C) “ADMINISTRATION ” MEANS THE MARYLAND CANNABIS 4
ADMINISTRATION ESTABL ISHED UNDER THIS TIT LE. 5
(C) (1) “CANNABIS” MEANS THE PLANT CANNABIS SATIVA L. AND ANY 6
PART OF THE PLANT , INCLUDING ALL DERIVA TIVES, EXTRACTS, CANNABINOIDS , 7
ISOMERS, ACIDS, SALTS, AND SALTS OF ISOMERS , WHETHER GROWING OR N OT, WITH 8
A DELTA–9–TETRAHYDROCANNABINOL CONCENTRATION GREATE R THAN 0.3% ON A 9
DRY WEIGHT BASIS . 10
(2) “CANNABIS” INCLUDES CANNABIS PR ODUCTS. 11
(3) “CANNABIS” DOES NOT INCLUDE HEM P OR HEMP PRODUCTS , AS 12
DEFINED IN § 14–101 OF THE AGRICULTURE ARTICLE. 13
(D) (C) (D) “CANNABIS AGENT ” MEANS AN EMPLOYEE , A VOLUNTEER , OR ANY 14
OTHER AUTHORIZED PER SON WHO ACTS FOR OR AT THE D IRECTION OF A CANNAB IS 15
LICENSEE OR CANNABIS REGISTRANT. 16
(E) (D) (E) “CANNABIS BUSINESS ” MEANS A BUSINESS LIC ENSED OR 17
REGISTERED BY THE DIVISION ADMINISTRATION TO OPERATE IN THE CA NNABIS 18
INDUSTRY. 19
(F) (E) (F) “CANNABIS CONCENTRATE ” MEANS A PRODUCT DERIV ED FROM 20
CANNABIS THAT IS KIE F, HASHISH, BUBBLE HASH , OIL, WAX, OR ANY OTHER 21
PRODUCT PRODUCED BY EXTRACTING CANNABINO IDS FROM THE PLANT T HROUGH 22
THE USE OF SOLVENTS , CARBON DIOXIDE , OR HEAT, SCREENS, PRESSES, OR STEAM 23
DISTILLATION. 24
(G) (F) (G) “CANNABIS–INFUSED PRODUCT ” MEANS OIL, WAX, OINTMENT, 25
SALVE, TINCTURE, CAPSULE, SUPPOSITORY , DERMAL PATCH , CARTRIDGE, OR ANY 26
OTHER PRODUCT CONTAI NING CANNABIS CONCEN TRATE OR USABLE CANN ABIS 27
THAT HAS BEEN PROCES SED SO THAT THE DRIE D LEAVES AND FLOWER S ARE 28
INTEGRATED INTO OTHE R MATERIAL. 29
(H) (G) (H) “CANNABIS LICENSEE ” MEANS A BUSINESS LIC ENSED BY THE 30
DIVISION ADMINISTRATION TO OPERATE IN THE CA NNABIS INDUSTRY . 31
(I) (H) (I) “CANNABIS PRODUCTS ” MEANS PRODUCTS THAT ARE COMPOSED 32
OF CANNABIS , CANNABIS CONCENTRATE , CANNABIS EXTRACT , OR OTHER 33 HOUSE BILL 556 23
INGREDIENTS AND ARE INTENDED FOR USE OR CONSUMPTION , INCLUDING EDIBLE 1
PRODUCTS, OILS, AND TINCTURES . 2
(J) (I) (J) “CANNABIS REGISTRANT ” MEANS AN INDEPENDENT TES TING 3
LABORATORY , A TRANSPORTER , A DELIVERY SERVICE , A SECURITY GUARD 4
COMPANY, A WASTE DISPOSAL COM PANY, AND ANY OTHER TYPE O F CANNABIS 5
BUSINESS REGISTERED UNDER THIS TITLE AND AUTHORIZED BY THE DIVISION 6
ADMINISTRATION . 7
(K) (J) (K) (1) “CANOPY” MEANS THE TOTAL SQUA RE FOOTAGE OF SPACE 8
USED BY A CANNABIS L ICENSEE FOR THE PROD UCTION OF FLOWERING CANNABIS 9
PLANTS. 10
(2) “CANOPY” INCLUDES EACH LAYER OF FLOWERING CANNABI S 11
PLANTS GROWN ON ANY RACK OR SHELVING . 12
(3) “CANOPY” DOES NOT INCLUDE SQUARE FOOTAGE USED FOR: 13
(I) MOTHER STOCK ; 14
(II) PROPAGATION ; 15
(III) IMMATURE OR NONFLOWE RING PLANTS; 16
(IV) PROCESSING; 17
(V) DRYING; 18
(VI) CURING; 19
(VII) TRIMMING; 20
(VIII) STORAGE; 21
(IX) OFFICES; 22
(X) HALLWAYS; 23
(XI) PATHWAYS; 24
(XII) WORK AREAS ; OR 25
(XIII) OTHER ADMINISTRATIVE AND NONPRODUCTION US ES. 26
24 HOUSE BILL 556
(L) (K) (L) (1) “CAREGIVER” MEANS: 1
(I) AN INDIVIDUAL WHO HA S AGREED TO ASSIST W ITH A 2
QUALIFYING PATIENT ’S MEDICAL USE OF CAN NABIS; AND 3
(II) FOR A QUALIFYING PATIENT U NDER THE AGE OF 18 YEARS: 4
1. A PARENT OR LEGAL GU ARDIAN; AND 5
2. NOT MORE THAN TWO AD DITIONAL ADULTS 6
DESIGNATED BY THE PA RENT OR LEGAL GUARDI AN. 7
(2) “CAREGIVER” DOES NOT INCLUDE ANY DESIGNATED SCHOOL 8
PERSONNEL AUTHORIZED TO ADMINISTER MEDICAL C ANNABIS TO A STUDENT IN 9
ACCORDANCE WITH THE GUIDELINES ESTABLISH ED UNDER § 7–446 OF THE 10
EDUCATION ARTICLE. 11
(M) (L) (M) “CERTIFYING PROVIDER ” MEANS AN INDIVIDUAL WHO: 12
(1) (I) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 13
PRACTICE MEDICI NE THAT WAS ISSUED B Y THE STATE BOARD OF PHYSICIANS 14
UNDER TITLE 14 OF THE HEALTH OCCUPATIONS ARTICLE; AND 15
2. IS IN GOOD STANDING WITH THE STATE BOARD OF 16
PHYSICIANS; 17
(II) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 18
PRACTICE DENTISTRY T HAT WAS ISSUED BY THE STATE BOARD OF DENTAL 19
EXAMINERS UNDER TITLE 4 OF THE HEALTH OCCUPATIONS ARTICLE; AND 20
2. IS IN GOOD STANDING WITH THE STATE BOARD OF 21
DENTAL EXAMINERS; 22
(III) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 23
PRACTICE PODIATRY TH AT WAS ISSUED BY THE STATE BOARD OF PODIATRIC 24
MEDICAL EXAMINERS UNDER TITLE 16 OF THE HEALTH OCCUPATIONS ARTICLE; 25
AND 26
2. IS IN GOOD STANDING WITH THE STATE BOARD OF 27
PODIATRIC MEDICAL EXAMINERS; 28
(IV) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 29
PRACTICE REGISTERED NURSING OR AND HAS AN ACTIVE , UNRESTRICTED 30
CERTIFICATION TO PRA CTICE AS A NURSE PRA CTITIONER OR A NURSE MIDWIFE 31 HOUSE BILL 556 25
THAT WAS ISSUED BY T HE STATE BOARD OF NURSING UNDER TITLE 8 OF THE 1
HEALTH OCCUPATIONS ARTICLE; AND 2
2. IS IN GOOD STANDING WITH THE STATE BOARD OF 3
NURSING; OR 4
(V) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 5
PRACTICE AS A PHYSIC IAN ASSISTANT ISSUED BY THE STATE BOARD OF PHYSICIANS 6
UNDER TITLE 15 OF THE HEALTH OCCUPATIONS ARTICLE; 7
2. HAS AN ACTIVE DELEGA TION AGREEMENT WITH A 8
PRIMARY SUPERVISING PHYSICIAN WHO IS A CE RTIFYING PROVIDER ; AND 9
3. IS IN GOOD STANDING WITH THE STATE BOARD OF 10
PHYSICIANS; 11
(2) HAS A STATE CONTROLLED DANG EROUS SUBSTANCES 12
REGISTRATION ; AND 13
(3) IS REGISTERED WITH T HE DIVISION ADMINISTRATION TO MAKE 14
CANNABIS AVAILABLE TO PATIENTS FOR MEDI CAL USE IN ACCORDANC E WITH 15
REGULATIONS ADOPTED BY THE DIVISION ADMINISTRATION . 16
(N) “COMMISSION” MEANS THE ALCOHOL, TOBACCO, AND CANNABIS 17
COMMISSION ESTABLISHE D UNDER § 1–302 OF THIS ARTICLE. 18
(O) (M) (N) “CONSUMER” MEANS AN INDIVIDUAL AT LEAST 21 YEARS OLD 19
WHO PURCHASES CANNABIS O R CANNABIS PRODUCTS FOR PERSONAL USE BY 20
INDIVIDUALS AT LEAST 21 YEARS OLD. 21
(P) (N) (O) (1) “CONTROL” MEANS: 22
(1) (I) THE DECISION –MAKING AUTHORITY OVE R THE 23
MANAGEMENT , OPERATIONS, OR POLICIES TH AT GUIDE A BUSINESS ; OR 24
(2) (II) AUTHORITY OVER THE O PERATION OF THE TECH NICAL 25
ASPECTS OF A BUSINES S. 26
(2) “CONTROL” INCLUDES: 27
(I) HOLDING A VOTING INTEREST OF 5% OR MORE IN A 28
CANNABIS LICENSEE OR A RIGHT TO VETO SIGNIF ICANT EVENTS; 29
26 HOUSE BILL 556
(II) THE RIGHT OR AUTHORITY T O MAKE OR VETO DECIS IONS 1
REGARDING OPERATIONS AND STRATEGIC PLANNI NG, CAPITAL ALLOCATIONS , 2
ACQUISITIONS, AND DIVESTMENTS ; 3
(III) THE RIGHT OR AUTHORI TY TO APPOINT OR REM OVE 4
DIRECTORS, CORPORATE –LEVEL OFFICERS , OR THEIR EQUIVALENT ; 5
(IV) THE RIGHT OR AUTHORI TY TO MAKE MAJOR MAR KETING, 6
PRODUCTION , AND FINANCIAL DECISI ONS; AND 7
(V) THE RIGHT OR AUTHORI TY TO EXECUTE EXCLUS IVE 8
CONTRACTS OR SIGNIFI CANT CONTRACTS IN TH E AGGREGATE OF $10,000 OR 9
GREATER ON BEHALF OF THE LICENSEE; AND 10
(VI) THE RIGHT OR AUTHORI TY TO EARN 5% OR MORE OF THE 11
PROFITS OR COLLECT 5% OR MORE OF THE DIVID ENDS. 12
(Q) (O) (P) “DELIVERY SERVICE ” MEANS A CANNABIS LIC ENSEE AUTHORIZED 13
TO DELIVER CANNABIS IN ACCORDANCE WITH A MICRO LICENSE TO OPE RATE A 14
DISPENSARY. 15
(R) (P) (Q) “DISPENSARY” MEANS AN ENTITY LICE NSED UNDER THIS TITL E 16
THAT ACQUIRES , POSSESSES, REPACKAGES , TRANSFERS, REPACKAGES , 17
TRANSPORTS , SELLS, DISTRIBUTES, OR DISPENSES CANNABI S OR CANNABIS 18
PRODUCTS, INCLUDING TINCTURES , AEROSOLS, OILS, AND OINTMENTS , RELATED 19
SUPPLIES, AND EDUCATIONAL MATE RIALS FOR USE BY QUA LIFYING PATIENTS , 20
CAREGIVERS, OR CONSUMERS THROUGH A STOREFRONT OR THRO UGH A DELIVERY 21
SERVICE, BASED ON LICENSE TYP E. 22
(S) (Q) (R) “DISPROPORTIONATELY IM PACTED AREA” MEANS A GEOGRAPHIC 23
AREA IDENTIFIED BY T HE OFFICE OF SOCIAL EQUITY THAT HAS BEEN 24
DISPROPORTIONATELY I MPACTED BY THE PROHI BITION OF CANNABIS HAD ABOVE 25
150% OF THE STATE’S 10–YEAR AVERAGE FOR CAN NABIS POSSESSION CHA RGES, AS 26
DETERMINED BY INFORM ATION FROM THE ADMINISTRATIVE OFFICE OF THE 27
COURTS. 28
(T) (R) “DIVISION” MEANS THE CANNABIS REGULATION AND 29
ENFORCEMENT DIVISION ESTABLISHED UNDER THIS TITLE . 30
(U) (S) (1) “EDIBLE CANNABIS PRODU CT” MEANS A CANNABIS 31
PRODUCT INTENDED FOR HUMAN CONSUMPTION BY ORAL INGESTION , IN WHOLE OR 32
IN PART. 33
(2) “EDIBLE CANNABIS PRODU CT” INCLUDES A CANNABIS PRODUCT 34 HOUSE BILL 556 27
THAT DISSOLVES OR DI SINTEGRATES IN THE M OUTH. 1
(3) “EDIBLE CANNABIS PRODU CT” DOES NOT INCLUDE ANY : 2
(I) CANNABIS CONCENTRATE ; 3
(II) CANNABIS–INFUSED PRODUCT , INCLUDING AN OIL , A WAX, 4
AN OINTMENT , A SALVE, A TINCTURE, A CAPSULE, A SUPPOSITORY , A DERMAL 5
PATCH, OR A CARTRIDGE ; OR 6
(III) OTHER DOSAGE FORM TH AT IS RECOGNIZED BY THE 7
UNITED STATES PHARMACOPEIA , THE NATIONAL FORMULARY, OR THE U.S. FOOD 8
AND DRUG ADMINISTRATION AND IS APPROVED BY THE DIVISION 9
ADMINISTRATION . 10
(V) (T) “GROWER” MEANS AN ENTITY LICE NSED UNDER THIS TITL E THAT: 11
(1) CULTIVATES, OR PACKAGES, OR DISTRIBUTES CANNABIS; AND 12
(2) IS AUTHORIZED BY THE DIVISION ADMINISTRATION TO PROVIDE 13
CANNABIS TO OTHER CA NNABIS LICENSEES AND REGISTERED INDEPENDE NT 14
TESTING LABORATORIES . 15
(W) (U) “INCUBATOR SPACE ” MEANS A FACILITY OPE RATED IN 16
ACCORDANCE WITH § 36–401 § 36–401(C)(3) OF THIS TITLE. 17
(X) (V) “INDEPENDENT TESTING L ABORATORY ” MEANS A FACILITY , AN 18
ENTITY, OR A SITE THAT IS RE GISTERED WITH THE DIVISION ADMINISTRATION TO 19
PERFORM TESTS RELATE D TO THE INSPECTION AND TESTING OF CANNA BIS AND 20
PRODUCTS CONTAINING CANNABIS. 21
(W) “INSTITUTION OF HIGHER EDUCATION” HAS THE MEANING STAT ED IN § 22
10–101 OF THE EDUCATION ARTICLE. 23
(Y) (X) “MICRO LICENSE” MEANS A LICENSE ISSU ED IN ACCORDANCE 24
WITH § 36–401 § 36–401(C)(2) OF THIS TITLE. 25
(Z) (Y) “ON–SITE CONSUMPTION EST ABLISHMENT ” MEANS AN ENTITY 26
LICENSED UNDER § 36–401(C)(4) OF THIS TITLE TO DISTRI BUTE CANNABIS OR 27
CANNABIS PRODUCTS FO R ON–SITE CONSUMPTION OTHER THAN CONSUMPTI ON BY 28
SMOKING INDOORS . 29
(AA) (Z) “OWNER” MEANS A PERSON WITH AN OWNERSHIP INTERES T IN A 30
CANNABIS LICENSEE . 31 28 HOUSE BILL 556
(BB) (AA) “OWNERSHIP INTEREST ” MEANS A DIRECT OR IN DIRECT EQUITY 1
INTEREST IN A CANNAB IS LICENSEE, INCLUDING IN ITS SHA RES OR STOCK. 2
(BB) “PASSIVE INVESTOR ” MEANS A PERSON AN INDIVIDUAL OR AN ENTITY 3
THAT: 4
(1) HOLDS AN AGGREGATE O WNERSHIP INTEREST OF LESS THAN 5% 5
IN A CANNABIS LICENSEE; AND 6
(2) DOES NOT HAVE CONTRO L OF THE CANNABIS LI CENSEE. 7
(CC) “PRINCIPAL OFFICER ” MEANS A BOARD MEMBER , A PRESIDENT, A VICE 8
PRESIDENT, A SECRETARY, A TREASURER, A PARTNER, AN OFFICER, OR A MANAGING 9
MEMBER, OR ANY OTHER INDIVID UAL WITH A PROF IT SHARING, FINANCIAL 10
INTEREST, OR REVENUE SHARING A RRANGEMENT , INCLUDING AN INDIVID UAL WITH 11
THE AUTHORITY TO CON TROL A CANNABIS LICE NSEE. 12
(DD) “PROCESSOR” MEANS AN ENTITY LICE NSED UNDER THIS TITL E THAT: 13
(1) TRANSFORMS CANNABIS INTO ANOTHER PRODUCT OR AN 14
EXTRACT AND PACKAGES AND LABELS THE CANNA BIS PRODUCT; AND 15
(2) IS AUTHORIZED BY THE DIVISION ADMINISTRATION TO PROVIDE 16
CANNABIS TO LICENSED DISPENSARIES AND REG ISTERED INDEPENDENT TESTING 17
LABORATORIES . 18
(EE) “QUALIFYING PATIENT ” MEANS AN INDIVIDUAL WHO: 19
(1) HAS BEEN PROVIDED WI TH A WRITTEN CERTIFI CATION BY A 20
CERTIFYING PROVIDER IN ACCORDANCE WITH A BONA FIDE PROVIDER –PATIENT 21
RELATIONSHIP ; AND 22
(2) IF UNDER THE AGE OF 18 YEARS, HAS A CAREGIVER . 23
(FF) “SOCIAL EQUITY APPLICA NT” MEANS AN APPLICANT FOR A CANNABIS 24
LICENSE OR CANNABIS REGISTRATION THAT : 25
(1) HAS AT LEAST 65% OWNERSHIP AND CONTRO L HELD BY ONE OR 26
MORE INDIVIDUALS WHO : 27
(I) HAVE LIVED IN A DISP ROPORTIONATELY IMPAC TED AREA 28
FOR AT LEAST 5 OF THE 10 YEARS IMMEDIATELY PR ECEDING THE SUBMISSI ON OF 29
THE APPLICATION ; OR 30 HOUSE BILL 556 29
(II) ATTENDED A PUBLIC SC HOOL IN A DISPROPORT IONATELY 1
IMPACTED AREA FOR AT LEAST 5 YEARS; OR 2
(III) FOR AT LEAST 2 YEARS, ATTENDED A 4–YEAR INSTITUTION 3
OF HIGHER EDUCATION IN THE STATE WHERE AT LEAST 40% OF THE INDIVIDUALS 4
WHO ATTEND THE INSTI TUTION OF HIGHER EDU CATION ARE ELIGIBLE FOR A PELL 5
GRANT; OR 6
(2) MEETS ANY OTHER CRIT ERIA ESTABLISHED BY THE COMMISSION 7
BASED ON THE RESULTS OF A DISPARITY STUDY ADMINISTRATION . 8
(GG) (1) “SOCIAL EQUITY LICENSE E” MEANS A SOCIAL EQUIT Y APPLICANT 9
WHO HAS BEEN AWARDED A CANNABIS LICENSE O R CANNABIS REGISTRAT ION. 10
(2) “SOCIAL EQUITY LICENSE E” INCLUDES A GROWER , PROCESSOR, 11
OR DISPENSARY THAT : 12
(I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE 13
OCTOBER 1, 2022; AND 14
(II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022. 15
(GG) (HH) “STANDARD LICENSE ” MEANS A LICENSE ISSU ED IN ACCORDANCE 16
WITH § 36–401 § 36–401(C)(1) OF THIS TITLE. 17
(HH) (II) “TRANSPORTER ” MEANS AN ENTITY REGI STERED UNDER THIS 18
TITLE TO TRANSPORT C ANNABIS BETWEEN CANN ABIS LICENSEES AND R EGISTERED 19
INDEPENDENT TESTING LABORATORIES . 20
(II) (JJ) (1) “USABLE CANNABIS ” MEANS THE DRIED LEAVES AND 21
FLOWERS OF THE CANNA BIS PLANT. 22
(2) “USABLE CANNABIS ” DOES NOT INCLUDE SEE DLINGS, SEEDS, 23
STEMS, STALKS, OR ROOTS OF THE PLAN T OR THE WEIGHT OF A NY NONCANNABIS 24
INGREDIENTS COMBINED WITH CANNABIS , SUCH AS INGREDIENTS ADDED TO 25
PREPARE A TOP ICAL ADMINISTRATION . 26
(JJ) (KK) “WRITTEN CERTIFICATION ” MEANS A CERTIFICATIO N THAT: 27
(1) IS ISSUED BY A CERTI FYING PROVIDER TO A QUALIFYING PATIENT 28
WITH WHOM THE PROVID ER HAS A BONA FIDE P ROVIDER–PATIENT RELATIONSHIP ; 29
30 HOUSE BILL 556
(2) INCLUDES A WRITTEN S TATEMENT CERTIFYING THAT , IN THE 1
CERTIFYING PROVIDER ’S PROFESSIONAL OPINI ON, AFTER HAVING COMPLET ED AN 2
ASSESSMENT OF THE PA TIENT’S MEDICAL HISTORY AN D CURRENT MEDICAL 3
CONDITION, THE PATIENT HAS A CO NDITION: 4
(I) THAT MEETS THE INCLU SION CRITERIA AND DO ES NOT 5
MEET THE EXCLUSION CRI TERIA OF THE CERTIFY ING PROVIDER ’S APPLICATION; 6
AND 7
(II) FOR WHICH THE POTENT IAL BENEFITS OF THE MEDICAL 8
USE OF CANNABIS WOUL D LIKELY OUTWEIGH TH E HEALTH RISKS FOR T HE PATIENT; 9
AND 10
(3) MAY INCLUDE A WRITTE N STATEMENT CERTIFYI NG THAT, IN THE 11
CERTIFYING PROVIDER ’S PROFESSIONAL OPINI ON, A 30–DAY SUPPLY OF MEDICA L 12
CANNABIS WOULD BE IN ADEQUATE TO MEET THE MEDICAL NEEDS OF THE 13
QUALIFYING PATIENT . 14
SUBTITLE 2. CANNABIS REGULATION AND ENFORCEMENT DIVISION MARYLAND 15
CANNABIS ADMINISTRATION . 16
36–201. 17
(A) (1) THERE IS A CANNABIS REGULATION AND ENFORCEMENT 18
DIVISION ESTABLISHED WITHIN THE OFFICE OF THE EXECUTIVE DIRECTOR OF IN 19
THE COMMISSION. 20
(2) THE DIVISION IS AN INDEPE NDENT UNIT THAT FUNC TIONS 21
WITHIN, AND REPORTS DIRECTLY ONLY TO, THE COMMISSION. 22
(A) THERE IS A MARYLAND CANNABIS ADMINISTRATION ESTABL ISHED AS 23
AN INDEPENDENT UNIT OF STATE GOVERNMENT . 24
(B) (1) THERE IS A DIRECTOR OF THE DIVISION ADMINISTRATION . 25
(2) THE GOVERNOR SHALL APPOIN T THE DIRECTOR OF THE 26
DIVISION ADMINISTRATION WITH THE ADVICE AND CONSENT OF THE SENATE. 27
(3) THE DIRECTOR SERVES AT TH E PLEASURE OF THE GOVERNOR. 28
(C) THE DIRECTOR MUST HAVE TH E TRAINING AND EXPER IENCE, 29
INCLUDING KNOWLEDGE OF THE STATE CANNABIS INDUST RY AND REGULATORY 30
SYSTEM, THAT IS NEEDED TO DIRECT THE WORK OF THE DIVISION 31
ADMINISTRATION . 32 HOUSE BILL 556 31
(D) THE DIVISION ADMINISTRATION MAY EMPLOY OFFICERS AND 1
EMPLOYEES STAFF AND RETAIN CON TRACTORS AS PROVIDED IN THE STATE 2
BUDGET. 3
(E) THE DIVISION ADMINISTRATION : 4
(1) SHALL BE RESPONSIBLE FOR CARRYING OUT THE REQUIREMENTS 5
AND DUTIES ESTABLISH ED UNDER THIS DIVISION TITLE; AND 6
(2) MAY RECOMMEND CHANGE S TO IMPROVE THE ADM INISTRATION 7
OF THIS DIVISION TITLE RELATING TO THE REGU LATION OF CANNABIS . 8
(F) THE DIVISION ADMINISTRATION SHALL ADMINISTER AND ENFORCE 9
THIS TITLE. 10
36–202. 11
(A) THE DIVISION ADMINISTRATION SHALL: 12
(1) DEVELOP AND MAINTAIN A SEED–TO–SALE TRACKING SYSTEM 13
THAT TRACKS CANNABIS FROM EITHER THE SEED OR IMMATURE PLANT ST AGE 14
UNTIL THE CANNABIS I S SOLD TO A PATIENT , CAREGIVER, OR CONSUMER ; 15
(2) CONDUCT FINANCIAL AN D CRIMINAL BACKGROUN D 16
INVESTIGATIONS OF AN Y PERSON WHO SUBMITS AN APPLICATION FOR A CANNABIS 17
LICENSE OR A CANNABI S LICENSEE, AS REQUIRED UNDER TH IS TITLE; 18
(3) DEVELOP A PROCESS FO R CONSUMERS AND QUALIFYING 19
PATIENTS TO PURCHASE CLONES A ND SEEDS, SEEDLINGS, STALKS, ROOTS, AND 20
STEMS OF THE CANNABI S PLANT FOR CULTIVAT ION IN ACCORDANCE WI TH § 5–601.2 21
OF THE CRIMINAL LAW ARTICLE; 22
(3) (4) SOLICIT, EVALUATE, AND ISSUE OR DENY AP PLICATIONS 23
FOR CANNABIS LICENSES AND CANNABIS REGISTR ATIONS, INCLUDING: 24
(I) LICENSES TO OPERATE A CANNABIS BUSINESS IN 25
ACCORDANCE WITH THIS TITLE; AND 26
(II) REGISTRATION FOR IND EPENDENT TESTING 27
LABORATORIES , TRANSPORTERS , SECURITY GUARD COMPA NIES, AND WASTE 28
DISPOSAL COMPANIES ; 29
(4) (5) AWARD OR DENY : 30 32 HOUSE BILL 556
(I) A LICENSE TO OPERATE A CANNABIS BUSINESS IN 1
ACCORDANCE WITH THIS TITLE; AND 2
(II) REGISTRATION TO INDE PENDENT TESTING LABO RATORIES, 3
TRANSPORTERS , SECURITY GUARD COMPA NIES, WASTE DISPOSAL COMPA NIES, AND 4
ANY OTHER TYPE OF CA NNABIS BUSINESS AUTH ORIZED BY THE DIVISION 5
ADMINISTRATION ; 6
(5) (6) CONDUCT ANNOUNCED AN D UNANNOUNCED INSPEC TIONS 7
OF ANY BUSINESS LICE NSED OR REGISTERED U NDER THIS TITLE TO E NSURE 8
COMPLIANCE WITH THIS TITLE; 9
(6) (7) AFTER A DETERMINATIO N THAT A VIOLATION O F THIS TITLE 10
OR A REGULATION ADOP TED UNDER THIS TITLE HAS OCCURRED , SUSPEND, FINE, 11
RESTRICT, OR REVOKE CANNABIS LICENSES AND CANNABI S REGISTRATIONS , 12
WHETHER ACTIVE , EXPIRED, OR SURRENDERED , OR IMPOSE ANY OTHER PENALTY 13
AUTHORIZED BY THIS T ITLE OR ANY REGULATI ON ADOPTED UNDER THI S TITLE; 14
(7) (8) (I) GIVE NOTICE AND HOLD A HEARING IN ACCORDA NCE 15
WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE, FOR ANY: 16
1. CONTESTED CANNABIS L ICENSE OR REGISTRATION 17
DENIAL; OR 18
2. VIOLATION OF THIS TI TLE OR ANY REGULATIO N 19
ADOPTED UNDER THIS T ITLE; 20
(II) ADMINISTER OATHS IN A PROCEEDING UNDER T HIS 21
SECTION; AND 22
(III) SUBJECT TO SUBSECTIO N (B)(3) OF THIS SECTION , ALLOW 23
THE PERSON AGAINST W HOM THE ACTION IS CO NTEMPLATED TO BE REP RESENTED 24
AT THE HEARING BY CO UNSEL; 25
(8) (9) ADOPT REGULATIONS NE CESSARY TO CARRY OUT ITS 26
DUTIES UNDER THIS TI TLE; AND 27
(9) (10) PERFORM ANY OTHER PO WER AUTHORIZED OR DU TY 28
REQUIRED UNDER THIS TITLE OR ANY OTHER P ROVISION OF STATE LAW. 29
(B) THE DIVISION ADMINISTRATION MAY: 30
HOUSE BILL 556 33
(1) ISSUE A SUBPOENA FOR THE ATTENDANCE OF A WITNESS TO 1
TESTIFY OR THE PRODU CTION OF EVIDENCE IN CONNECTIO N WITH: 2
(I) ANY DISCIPLINARY ACT ION UNDER THIS TITLE ; OR 3
(II) ANY INVESTIGATION OR PROCEEDING INITIATED FOR AN 4
ALLEGED VIOLATION OF THIS TITLE; 5
(2) DELEGATE THE HEARING AUTHORITY AUTHORIZED UNDER 6
SUBSECTION (A)(7) (A)(8) OF THIS SECTION TO AN EMPLOYEE WITHIN THE 7
ADMINISTRATION ; AND 8
(3) IF, AFTER DUE NOTICE , THE PERSON AGAINST W HOM A 9
DISCIPLINARY ACTION IS CONTEMPLATED DOES NOT APPEAR AT A HEAR ING, HEAR 10
AND DETERMINE THE MA TTER. 11
36–203. 12
(A) THE DIVISION ADMINISTRATION SHALL: 13
(1) EVALUATE THE REGULAT IONS ADOPTED BY THE NATALIE M. 14
LAPRADE MEDICAL CANNABIS COMMISSION IN TITLE 10, SUBTITLE 62 OF THE 15
CODE OF MARYLAND REGULATIONS; AND 16
(2) ON OR BEFORE JULY 1, 2023, ADOPT EMERGENCY REGU LATIONS 17
TO: 18
(I) CARRY OUT THE LICENS URE REQU IREMENTS SPECIFIED 19
UNDER THIS TITLE ; 20
(II) IMPLEMENT PROCEDURES RELATED TO CANNABIS 21
APPLICATIONS, LICENSES, AND REGISTRATIONS IN ACCORDANCE WITH THIS TITLE; 22
(III) ASSIST THE COMPTROLLER IN THE CO LLECTION OF TAXES 23
IMPOSED ON THE SALE OF ADULT–USE CANNABIS UNDER § 11–104(K) OF THE TAX – 24
GENERAL ARTICLE; 25
(IV) IMPLEMENT INVENTORY MANAGEMENT AND TRACK ING 26
THAT DOES NOT DIFFER ENTIATE BETWEEN ADUL T–USE OR MEDICAL CANNA BIS OR 27
CANNABIS PRODUCTS BE FORE THE POINT OF SA LE, EXCEPT FOR PRODUCTS 28
ALLOWED BY THE DIVISION ADMINISTRATION FOR SALE ONLY TO PAT IENTS AND 29
CAREGIVERS; AND 30
34 HOUSE BILL 556
(V) ESTABLISH OPERATING REQUIREMENTS FOR CAN NABIS 1
LICENSEES OR CANNABIS REGISTRA NTS, INCLUDING REQUIREMEN TS FOR: 2
1. SECURITY, INCLUDING LIGHTING , PHYSICAL 3
SECURITY, VIDEO, AND ALARM REQUIREMENTS ; 4
2. SAFE AND SECURE DELI VERY, TRANSPORT, AND 5
STORAGE OF CANNABIS ; 6
3. PREVENTING THE SALE OR DIVERSION OF CANN ABIS 7
AND CANNABIS PRODUCT S TO PERSONS UNDER T HE AGE OF 21 YEARS; AND 8
4. PACKAGING AND LABELI NG OF CANNABIS AND 9
CANNABIS PRODUCTS , INCLUDING CHILD –RESISTANT PACKAGING ; AND 10
5. HEALTH AND SAFETY ST ANDARDS GOVERNING TH E 11
CULTIVATION, MANUFACTURE , TESTING, AND DISPENSING OF CA NNABIS OR 12
CANNABIS PRODUCTS . 13
(B) THE EMERGENCY REGULAT IONS THAT THE DIVISION ADMINISTRAT ION 14
IS REQUIRED TO ADOPT UNDER SUBSECTION (A) OF THIS SECTION SHAL L: 15
(1) BE SUPPLEMENTAL TO T HE MEDICAL CANNABIS REGULATIONS 16
UNDER TITLE 10, SUBTITLE 62 OF THE CODE OF MARYLAND REGULATIONS; AND 17
(2) NOTWITHSTANDING ANY OTHER LAW, REMAIN IN EFFECT UNTIL 18
THE TAKING EFFECT OF NONEMERGENCY REGULAT IONS ADOPTED UNDER 19
SUBSECTION (C) OF THIS SECTION. 20
(C) (1) ON OR BEFORE JULY 1, 2024, THE DIVISION ADMINISTRATION 21
SHALL ADOPT NONEMERG ENCY REGULATIONS NECESSARY TO CARRY OUT THE 22
PROVISIONS OF THIS TITLE. 23
(2) TO THE EXTENT PRACTIC ABLE, THE DIVISION ADMINISTRATION 24
SHALL ADOPT REGULATI ONS: 25
(I) REQUIRING CANNABIS L ICENSEES TO TRANSITI ON FROM A 26
CASH SYSTEM AND TO U SE TRADITIONAL BANKI NG SERVICES; AND 27
(II) ESTABLISHING TRADE P RACTICE RESTRICTIONS . 28
(3) THE ADMINISTRATION SHALL ADOPT REGULATIONS : 29
(I) GOVERNING INTERNET SALES OF CAN NABIS; 30 HOUSE BILL 556 35
(II) IMPLEMENTING AND SUP PLEMENTING PACKAGING AND 1
LABELING REQUIREMENT S FOR CANNABIS PRODU CTS UNDER § 36–203.1 OF THIS 2
SUBTITLE; 3
(III) ESTABLISHING PROCED URES FOR THE USE OF POINT OF 4
SALE TECHNOLOGIES BY DISPENSARIES FOR ALL TRANSACTIONS IN ORDE R TO 5
VERIFY A CONSUMER ’S AGE USING A DRIVER ’S LICENSE OR OTHER V ALID 6
IDENTIFICATION ISSUE D BY A GOVERNMENTAL UNIT SPECIFIED BY TH E 7
ADMINISTRATION ; AND 8
(IV) ESTABLISHING HEALTH , SAFETY, SECURITY, AND TRACKING 9
REQUIREMENTS FOR THE PACKAGING AND REPACK AGING OF CANNABIS BY A 10
DISPENSARY IN ACCORD ANCE WITH § 36–203.1 OF THIS SUBTITLE. 11
(D) THE REGULATIONS ADOPT ED BY THE DIVISION ADMINISTRATION 12
UNDER THIS SECTION SHALL, TO THE EXTENT PRACTI CABLE, REGULATE MEDICAL 13
AND ADULT–USE CANNABIS IN THE SAME MANNER . 14
36–203.1. 15
(A) THE ADMINISTRATION SHALL ADOPT REGULATIONS ES TABLISHING 16
LIMITS ON THE MAXIMU M POTENCY OF CANNABI S PRODUCTS SOLD IN T HE STATE, 17
INCLUDING LIMITS ON THE MAXIMUM AMOUNT O F THC IN INDIVIDUAL CANNAB IS 18
PRODUCTS AND LIMITS ON THE MAXIMUM AGGRE GATE THC AMOUNT FOR MULTIPLE 19
EDIBLE CANNABIS PROD UCTS PACKAGED TOGETH ER. 20
(B) A PACKAGE OF CANNABIS FOR DISTRIBUTION TO A CONSUMER OR 21
QUALIFYING PATIENT S HALL: 22
(1) CONFORM TO : 23
(I) CHILD–RESISTANT PACKAGING REQUIREMENTS 24
ESTABLISHED UNDER 16 C.F.R. § 1700.15(B)(1); AND 25
(II) TAMPER–EVIDENT PACKAGING ; 26
(2) PROVIDE THAT PACKAGI NG AND LABELING SHAL L INCLUDE: 27
(I) A FINISHED PRODUCT L OT NUMBER AND EXPIRA TION DATE 28
IF APPLICABLE; 29
(II) A STATEMENT: 30
36 HOUSE BILL 556
1. THAT CONSUMPTION OF CANNABIS MAY IMPAIR YOUR 1
ABILITY TO DRIVE A C AR OR OPERATE MACHIN ERY, USE EXTREME CAUTION ; 2
2. OF POTENTIAL RISKS A SSOCIATED WITH CANNA BIS 3
USE, ESPECIALLY DURING PR EGNANCY OR BREAST FEEDING; AND 4
3. THAT THIS PACKAGE CO NTAINS CANNABIS , KEEP OUT 5
OF THE REACH OF CHIL DREN AND ANIMALS ; 6
(III) THE NAME , ADDRESS, AND PHONE NUMBER OF THE 7
DISPENSARY THAT SOLD THE PRODUCT TO REPOR T AN ADVERSE EVENT ; 8
(IV) ANY ALLERGEN WARNING REQUIRED BY LAW ; 9
(V) A LISTING OF NONCANN ABIS INGREDIENTS ; AND 10
(VI) AN ITEMIZATION, INCLUDING WEIGHT : 11
1. OF ALL CANNABINOID A ND TERPENE INGREDIEN TS 12
SPECIFIED FOR THE PR ODUCT; AND 13
2. CONCENTRATIONS OF AN Y CANNABINOID OF LES S 14
THAN 1% PRINTED WITH A LEADI NG ZERO BEFORE THE D ECIMAL POINT. 15
(C) CANNABIS LABELING AND PACKAGING MAY NOT IN CLUDE: 16
(1) SUBJECT TO SUBSECTIO N (D) OF THIS SECTION, ANY IMAGE THAT 17
MAY APPEAL TO CHILDR EN INCLUDING: 18
(I) IMAGES OF FOOD , CANDY, BAKED GOODS , CEREAL, FRUIT, 19
AND BEVERAGES ; AND 20
(II) A RESEMBLANCE TO THE TRADEMARKED CHARACTE RISTIC 21
PRODUCT–SPECIALIZED PACKAGIN G OF ANY COMMERCIALL Y AVAILABLE CANDY , 22
SNACK, BAKED GOOD, CEREAL, OR BEVERAGE ; 23
(2) ANY IMAGE THAT IS DE SIGNED OR LIKELY TO APPEAL TO MINO RS, 24
INCLUDING CARTOONS , TOYS, ANIMALS, CHILDREN, OR ANY LIKENESS TO I MAGES, 25
CHARACTERS , OR PHRASES THAT ARE POPULARLY USED TO AD VERTISE TO 26
CHILDREN; 27
(3) A STATEMENT , ARTWORK, OR DESIGN THAT COULD REASONABLY 28
MISLEAD ANY INDIVIDU AL TO BELIEVE THAT T HE PACKAGING CONTAINS ANYT HING 29
OTHER THAN A FINISHE D CANNABIS PRODUCT ; AND 30 HOUSE BILL 556 37
(4) ANY IMAGE OF A SEAL , FLAG, CREST, COAT OF ARMS , OR OTHER 1
INSIGNIA THAT COULD REASONABLY MISLEAD A NY INDIVIDUAL TO BEL IEVE THAT 2
THE PRODUCT HAS BEEN ENDORSED, MANUFACTURED , OR USED BY ANY AGENCY OF 3
A STATE OR POLITICAL SUBDIVISION. 4
(D) THE ADMINISTRATION MAY AD OPT REGULATIONS TO A LLOW THE SALE , 5
ON OR BEFORE JULY 1, 2024, OF CANNABIS OR CANNA BIS PRODUCTS THAT AR E 6
LABELED OR PACKAGED USING IMAGES DESCRIB ED UNDER SUBSECTION (C)(1) OF 7
THIS SECTION. 8
36–204. 9
(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE DIVISION 10
ADMINISTRATION SHALL ESTABLISH AND MAINTAIN A STATE CANNABIS TESTIN G 11
LABORATORY . 12
(2) (I) ON OR BEFORE JULY 1, 2023, THE MARYLAND 13
DEPARTMENT OF AGRICULTURE OR THE MARYLAND DEPARTMENT OF HEALTH 14
MAY ENTER INTO A MEM ORANDUM OF UNDERSTAN DING WITH THE DIVISION 15
ADMINISTRATION TO TEST CANNABIS AT AN EXISTING STATE–OWNED LABORATORY 16
IF DOING SO WOULD BE A MORE ECONOMIC AND EFFICIENT ALTERNATIV E TO THE 17
ESTABLISHMENT OF A TESTING LABORATORY U NDER PARAGRAPH (1) OF THIS 18
SUBSECTION. 19
(II) IF THE MARYLAND DEPARTMENT OF AGRICULTURE OR 20
THE MARYLAND DEPARTMENT OF HEALTH AND THE DIVISION ADMINISTRATION 21
DETERMINE THAT CO –LOCATING CANNABIS TE STING AT AN EXISTING 22
STATE–OWNED LABOR ATORY IS NOT OPERATI ONALLY FEASIBLE , SUFFICIENT 23
FUNDING SHALL BE PRO VIDED IN THE ANNUAL BUDGET TO COMPLY WIT H 24
PARAGRAPH (1) OF THIS SUBSECTION . 25
(B) THE STATE CANNABIS TESTIN G LABORATORY IS RESP ONSIBLE FOR: 26
(1) DEVELOPING AND MAINT AINING A CANNABIS LA BORATORY 27
REFERENCE LIBRARY TH AT CONTAINS CANNABIS TESTING METHODOLOGIE S IN THE 28
AREAS OF: 29
(I) POTENCY; 30
(II) HOMOGENEITY ; 31
(III) DETECTION AND QUANTI TATION OF CONTAMINAN TS; AND 32
38 HOUSE BILL 556
(IV) SOLVENTS; 1
(2) ESTABLISHING STANDAR D OPERATING PROCEDUR ES FOR 2
SAMPLE COLLECTION , PREPARATION , AND ANALYSIS OF CANN ABIS BY 3
INDEPENDENT TESTING LABORATORIES ; 4
(3) CONDUCTING PROFICIEN CY TESTING OF INDEPE NDENT TESTING 5
LABORATORIES ; 6
(4) REMEDIATING PROBLEMS WITH INDEPENDENT TES TING 7
LABORATORIES ; AND 8
(5) CONDUCTING COMPLIANC E TESTING ON CANNABI S SAMPLES 9
ANALYZED BY INDEPEND ENT TESTING LABORATO RIES; AND 10
(6) IDENTIFYING AND DETE CTING THE PRESENCE A ND PURITY OF 11
CANNABIS, ALCOHOL, AND TOBACCO IN SAMPL ES OR SEIZED CONTRAB AND IN 12
SUPPORT OF THE REGUL ATORY AUTHORITY OF T HE COMMISSION OR 13
ADMINISTRATION . 14
(C) INDEPENDENT TESTING L ABORATORIES LICENSED UNDER § 36–408 OF 15
THIS TITLE SHALL PRO VIDE MATERIALS FOR T HE CANNABIS LABORATO RY 16
REFERENCE LIBRARY . 17
(D) THE STATE CANNABIS TESTIN G LABORATORY SHALL H OLD MEDICAL 18
AND ADULT–USE CANNABIS TESTING TO THE SAME STANDARD S. 19
36–205. 20
(A) THE DIVISION ADMINISTRATION MAY IMPOSE REGISTRATION AND 21
OTHER FEES TO DEFRAY THE COSTS OF: 22
(1) THE OPERATIONS OF TH E DIVISION ADMINISTRATION AND THE 23
COMMISSION; AND 24
(2) ADMINISTERING AND EN FORCING THIS DIVISION TITLE. 25
(B) IF FEES ARE IMPOSED U NDER SUBSECTION (A) OF THIS SECTION , THE 26
DIVISION ADMINISTRATION SHALL DEPOSIT THE FE ES COLLECTED IN THE 27
CANNABIS REGULATION AND ENFORCEMENT FUND ESTABLISHED UNDE R § 36–206 28
OF THIS SUBTITLE. 29
36–206. 30
HOUSE BILL 556 39
(A) IN THIS SECTION , “FUND” MEANS THE CANNABIS REGULATION AND 1
ENFORCEMENT FUND. 2
(B) THERE IS A CANNABIS REGULATION AND ENFORCEMENT FUND. 3
(C) THE PURPOSE OF THE FUND IS TO PROVIDE FU NDS TO COVER THE 4
COSTS OF: 5
(1) THE OPERATION OF THE DIVISION AND THE COMMISSION 6
ADMINISTRATION ; AND 7
(2) ADMINISTERING AND EN FORCING THIS DIVISION TITLE. 8
(D) THE COMPTROLLER SHALL ADM INISTER THE FUND AT THE DIRECTION 9
OF THE DIVISION ADMINISTRATION . 10
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 11
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 12
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 13
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 14
(F) THE FUND CONSISTS OF : 15
(1) FEES DISTRIBUTED TO THE FUND UNDER § 36–205 OF THIS 16
SUBTITLE; 17
(2) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–1302.2 OF THE 18
TAX – GENERAL ARTICLE; 19
(3) INTEREST EARNINGS OF THE FUND; AND 20
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 21
THE BENEFIT OF THE FUND, IN ACCORDANCE WITH A NY CONDITIONS ADOPTE D BY 22
THE COMMISSION FOR THE AC CEPTANCE OF DONATION S OR GIFTS TO THE FUND. 23
(G) THE FUND MAY BE USED ONLY FOR CARRYING OUT THI S DIVISION 24
TITLE. 25
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 26
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 27
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 28
THE FUND. 29 40 HOUSE BILL 556
(I) THE FUND IS SUBJECT TO AU DIT BY THE OFFICE OF LEGISLATIVE 1
AUDITS AS PROVIDED FO R IN § 2–1220 OF THE STATE GOVERNMENT ARTICLE. 2
(J) (1) ON OR BEFORE MARCH 15 EACH YEAR, THE COMPTROLLER 3
SHALL PUBLISH ON ITS WEBSITE A DETAILED R EPORT ON REVENUE DISTRIBUTED 4
TO AND EXPENDITURES FROM THE FUND. 5
(2) THE REPORT SHALL ALSO BE SUBMITTED TO THE GENERAL 6
ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 7
SUBTITLE 3. MEDICAL USE OF CANNABIS. 8
36–301. 9
(A) THE DIVISION ADMINISTRATION SHALL REGISTER AS A CERTIFYING 10
PROVIDER AN INDIVIDU AL WHO: 11
(1) MEETS THE REQUIREMEN TS OF THIS SUBTITLE ; AND 12
(2) SUBMITS THE REQUIRED APPLICATION TO THE DIVISION 13
ADMINISTRATION . 14
(B) TO BE REGISTERED AS A CERTIFYING PROVIDER , A PROVIDER SHALL 15
SUBMIT AN APPLICATIO N TO THE DIVISION ADMINISTRATION THAT INCLUDES : 16
(1) THE REASONS FOR INCL UDING A PATIENT UNDE R THE CARE OF 17
THE PROVIDER FOR THE PURPOSES OF THIS SUB TITLE, INCLUDING THE PATIE NT’S 18
QUALIFYING MEDICAL C ONDITIONS; 19
(2) AN ATTESTATION THAT A STANDARD PATIENT E VALUATION WILL 20
BE COMPLETED , INCLUDING A HISTORY , A PHYSICAL EXAMINATI ON, A REVIEW OF 21
SYMPTOMS, AND OTHER RELEVANT M EDICAL INFORMATION ; AND 22
(3) THE PROVIDER ’S PLAN FOR TH E ONGOING ASSESSMENT AND 23
FOLLOW–UP CARE OF A PATIENT AND FOR COLLECTING A ND ANALYZING DATA . 24
(C) THE DIVISION ADMINISTRATION IS ENCOURAGED TO APP ROVE 25
PROVIDER APPLICATION S FOR THE FOLLOWING : 26
(1) A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL CONDITION 27
THAT RESULTS IN A PA TIENT BEING ADMITTED INTO HOSPICE OR RECE IVING 28
PALLIATIVE CARE ; 29
HOUSE BILL 556 41
(2) A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL CONDITION 1
OR THE TREATMENT OF A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL 2
CONDITION THAT PRODU CES: 3
(I) CACHEXIA, ANOREXIA, OR WASTING SYNDROME ; 4
(II) SEVERE OR CHRONIC PA IN; 5
(III) SEVERE NAUSEA ; 6
(IV) SEIZURES; OR 7
(V) SEVERE OR PERSISTENT MUSCLE SPASMS ; 8
(3) GLAUCOMA ; OR 9
(4) POST–TRAUMATIC STRESS DIS ORDER. 10
(D) THE DIVISION ADMINISTRATION MAY NOT LIMIT TREATMENT OF A 11
PARTICULAR MEDICAL C ONDITION TO ONE CLAS S OF PROVIDERS. 12
(E) THE DIVISION ADMINISTRATION MAY APPROVE APPLICAT IONS THAT 13
INCLUDE ANY OTHER CO NDITION THAT IS SEVE RE AND FOR WHICH OTH ER MEDICAL 14
TREATMENTS HAVE BEEN INEFFECTIVE IF THE S YMPTOMS REASONABLY CAN BE 15
EXPECTED TO BE RELIE VED BY THE MEDICAL U SE OF CANNABIS. 16
(F) A CERTIFYING PROVIDER OR THE SPOUSE OF A C ERTIFYING PROVIDER 17
MAY NOT: 18
(1) RECEIVE ANY GIFT FRO M A CANNABIS LICENSE E; 19
(2) HOLD AN OWNERSHIP IN TEREST IN A CANNABIS LICENSEE OR A 20
BUSINESS THAT CONTRO LS A CANNABIS LICENS EE; OR 21
(3) RECEIVE ANY COMPENSA TION FROM A CANNABIS LICENSEE. 22
(G) A CERTIFYING PROVIDER SHALL ISSUE EACH WRI TTEN CERTIFICATION 23
IN THE FORM REQUIRED BY THE DIVISION ADMINISTRATION . 24
(H) A CERTIFYING PROVIDER MAY DISCUSS MEDICAL CANNABIS WITH A 25
PATIENT. 26
(I) (1) A CERTIFYING PROVIDER REGISTRATION IS VALI D FOR 2 YEARS. 27
42 HOUSE BILL 556
(2) THE DIVISION ADMINISTRATION SHALL GRANT OR DENY A 1
RENEWAL OF A REGISTR ATION BASED ON THE P ROVIDER’S PERFORMANCE IN 2
COMPLYING WITH REGULAT IONS ADOPTED BY THE DIVISION ADMINISTRATION . 3
36–302. 4
(A) A QUALIFYING PATIENT O R CAREGIVER MAY OBTA IN MEDICAL 5
CANNABIS FROM A DISP ENSARY LICENSED BY T HE DIVISION ADMINISTRATION . 6
(B) (1) A QUALIFYING PATIENT W HO IS AT LEAST 21 YEARS OLD MAY NOT 7
CULTIVATE MORE THAN FOUR CANNABIS PLANTS . 8
(2) IF TWO OR MORE QUALIF YING PATIENTS WHO AR E AT LEAST 21 9
YEARS OLD RESIDE AT THE SAME RESIDENCE , NOT MORE THAN FOUR C ANNABIS 10
PLANTS MAY BE CULTIV ATED AT THAT RESIDEN CE. 11
(3) EXCEPT AS PROV IDED IN PARAGRAPHS (1) AND (2) OF THIS 12
SUBSECTION, A QUALIFYING PATIENT SHALL COMPLY WITH TH E CANNABIS 13
CULTIVATION REQUIREM ENTS ESTABLISHED UND ER § 5–601.2 OF THE CRIMINAL 14
LAW ARTICLE. 15
(C) A QUALIFYING PATIENT U NDER THE AGE OF 18 YEARS MAY OBTAIN 16
MEDICAL CANNABIS ONLY THRO UGH: 17
(1) THE QUALIFYING PATIE NT’S CAREGIVER; OR 18
(2) ANY DESIGNATED SCHOO L PERSONNEL AUTHORIZ ED TO 19
ADMINISTER MEDICAL C ANNABIS TO A STUDENT IN ACCORDANCE WITH T HE 20
GUIDELINES ESTABLISH ED UNDER § 7–446 OF THE EDUCATION ARTICLE. 21
(D) A CAREGIVER MAY SERVE NOT MORE THAN FIVE Q UALIFYING PATIENTS 22
AT ANY TIME. 23
(E) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 24
QUALIFYING PATIENT M AY HAVE NOT MORE THA N TWO CAREGIVERS . 25
(2) A QUALIFYING PATIENT U NDER THE AGE OF 18 YEARS MAY HAVE 26
NOT MORE THAN FOUR C AREGIVERS. 27
(F) A SALE OF CANNABIS OR CANNABIS PRODUCTS TO A QUALIFYING 28
PATIENT IS NOT SUBJE CT TO TAXES IMPOSED ON THE SALE OF CANNA BIS OR 29
CANNABIS PRODUCTS UN DER § 11–104(K) OF THE TAX – GENERAL ARTICLE. 30
(G) A QUALIFYING PATIENT MAY POSSESS UP TO: 31 HOUSE BILL 556 43
(1) 120 GRAMS OF USABLE CANN ABIS; OR 1
(2) 36 GRAMS OF DELTA –9–TETRAHYDROCANNABINOL (THC) IN THE 2
CASE OF A CANNABIS –INFUSED PRODUCT . 3
(H) DESIGNATED SCHOOL PER SONNEL DESCRIBED IN SUBSECTION (C)(2) 4
OF THIS SECTION: 5
(1) MAY ADMINISTER TO A STUDENT ONLY MEDICAL CANNABIS: 6
(I) THAT IS OBTAINED THR OUGH THE STUDENT ’S CAREGIVER; 7
AND 8
(II) IN ACCORDANCE WITH D OSING, TIMING, AND DELIVERY 9
ROUTE INSTRUCTIONS A S PROVIDED BY THE CE RTIFYING PROVIDER ’S WRITTEN 10
INSTRUCTIONS ; AND 11
(2) ARE NOT REQUIRED TO REGISTER WITH THE COMMISSION 12
ADMINISTRATION UNDER THIS SUBTITLE . 13
(I) A CAREGIVER MAY ADMINI STER MEDICAL CANNABI S TO A STUDENT 14
WHO IS A QUALIFYING PATIENT OF THE CAREG IVER ON SCHOOL PROPE RTY, DURING 15
SCHOOL–SPONSORED ACTIVITIES , AND WHILE ON A SCHOO L BUS. 16
SUBTITLE 4. CANNABIS LICENSING. 17
36–401. 18
(A) (1) A PERSON MUST OBTAIN A CANNABIS LICENSE ISS UED BY THE 19
DIVISION ADMINISTRATION TO OPERATE A CANNABI S BUSINESS. 20
(2) A CANNABIS LICENSE ISS UED UNDER THIS SUBTI TLE: 21
(I) AUTHORIZES THE HOLDE R OF THE LICENSE TO OPERATE A 22
MEDICAL AND ADULT –USE CANNABIS BUSINES S; 23
(II) IS VALID FOR 5 YEARS ON INITIAL LIC ENSURE AND 5 YEARS 24
ON RENEWAL ; AND 25
(III) MAY BE TRANSFERRED O NLY IN ACCORDANCE WI TH 26
SUBTITLE 5 OF THIS TITLE. 27
(B) (1) THE DIVISION ADMINISTRATION SHALL: 28 44 HOUSE BILL 556
(I) ISSUE STANDARD LICEN SES, MICRO LICENSES , INCUBATOR 1
SPACE LICENSES , AND ON–SITE CONSUMPTION LIC ENSES IN ACCORDANCE WITH 2
THIS TITLE; 3
(II) ON OR BEFORE JULY 1, 2023, CONVERT LICENSES THA T 4
WERE ISSUED TO MEDIC AL CANNABIS GROWERS , PROCESSORS , AND DISPENSARIES , 5
INCLUDING THOSE BUSI NESSES PREAPPROVED F OR LICENSURE , TO LICENSES TO 6
OPERATE A MEDICAL AN D ADULT–USE CANNABIS BUSINES S IF: 7
1. A CONVERSION FEE IS PAID IN ACCORDANCE W ITH § 8
36–403 OF THIS SUBTITLE ; AND 9
2. THE BUSINESS COMPLIE S WITH THE OWNERSHIP 10
RESTRICTIONS UNDER S UBSECTION (E) OF THIS SECTION; 11
(III) SET PRODUCTION , PROCESSING, SALES, AND OTHER 12
LIMITATIONS AND REQU IREMENTS FOR ALL LIC ENSE TYPES; 13
(IV) ISSUE DISPENSARY LIC ENSES IN A MANNER TH AT 14
ENCOURAGES A BALANCE D GEOGRAPHIC DISTRIB UTION BASED ON POPUL ATION 15
AND MARKET DEMAND WI THIN A SPECIFIC COUN TY, AS WELL AS 16
CROSS–JURISDICTIONAL MARKE T DEMAND; AND 17
(V) CONSIDER MARKET DEMA ND IN THE ISSUANCE O F ALL 18
LICENSE TYPES; AND 19
(VI) (V) ADOPT REGULATIONS RE QUIRING LICENSEES WH OSE 20
LICENSES WERE CONVER TED BY THE DIVISION ADMINISTRATION UNDER ITEM (II) 21
OF THIS PARAGRAPH TO RESERVE A SPECIFIED AMOUNT OF CANNABIS F OR SOCIAL 22
EQUITY LICENSEES . 23
(2) THE DIVISION ADMINISTRATION MAY: 24
(I) INSPECT A CANNABIS L ICENSEE TO ENSURE CO MPLIANCE 25
WITH THIS TITLE AND THE REGULATIONS ADOP TED UNDER THIS TITLE ; 26
(II) REVOKE A CANNABIS LI CENSE IF GOOD FAITH EFFORTS 27
HAVE NOT BEEN MADE B Y THE CANNABIS LICEN SEE TO ESTA BLISH A CANNABIS 28
BUSINESS WITHIN 18 MONTHS AFTER THE LIC ENSE WAS AWARDED ; 29
(III) IMPOSE PENALTIES OR RESCIND THE LICENSE OF A 30
CANNABIS LICENSEE TH AT DOES NOT MEET THE STANDARDS FOR LICENS URE 31 HOUSE BILL 556 45
ESTABLISHED UNDER TH IS TITLE OR REGULATI ONS ADOPTED UNDER TH IS TITLE; 1
AND 2
(IV) CONDITIONALLY AWARD CANNABIS LICENSES . 3
(C) (1) A STANDARD LICENSE AUT HORIZES THE HOLDER O F THE 4
LICENSE: 5
(I) FOR GROWERS , TO OPERATE MORE THAN 10,000 SQUARE 6
FEET, BUT NOT MORE THAN 300,000 SQUARE FEET , OF INDOOR CANOPY OR ITS 7
EQUIVALENT, AS CALCULATED BY THE DIVISION ADMINISTRATION ; 8
(II) FOR PROCESSORS , TO PROCESS MORE THAN 1,000 POUNDS 9
OF CANNABIS PER YEAR , AS CALCULATED BY THE DIVISION ADMINISTRATION ; AND 10
(III) FOR DISPENSARIES , TO OPERATE A STORE A T A PHYSICAL 11
LOCATION THAT SELLS CANNABIS O R CANNABIS PRODUCTS . 12
(2) A MICRO LICENSE AUTHOR IZES THE HOLDER OF T HE LICENSE: 13
(I) FOR GROWERS , TO OPERATE NOT MORE THAN 10,000 14
SQUARE FEET OF INDOO R CANOPY OR ITS EQUI VALENT, AS CALCULATED BY THE 15
DIVISION ADMINISTRATION ; 16
(II) FOR PROCESSORS , TO PROCESS NOT MORE THAN 1,000 17
POUNDS OF CANNABIS P ER YEAR, AS CALCULATED BY THE DIVISION 18
ADMINISTRATION ; AND 19
(III) FOR DISPENSARIES , TO OPERATE A DELIVER Y SERVICE 20
THAT SELLS CANNABIS OR CANNABIS PRODUCTS WITHOUT A PHYSICAL 21
STOREFRONT , PROVIDED THAT THE LI CENSEE EMPLOYS NOT M ORE THAN 10 22
EMPLOYEES. 23
(3) AN INCUBATOR SPACE LI CENSE AUTHORIZES THE HOLDER OF 24
THE LICENSE TO OPERA TE A FACILITY WITHIN WHICH A MICRO LICENS EE MAY 25
OPERATE IN ACCORDANC E WITH § 36–406 OF THIS SUBTITLE. 26
(4) AN ON–SITE CONSUMPTION LIC ENSE AUTHORIZES THE HOLDER 27
OF THE LICENSE TO OP ERATE A FACILITY IN ON THE PREMISES OF WHICH 28
INDIVIDUALS CAN SMOK E OUTDOORS, VAPE, OR CONSUME CANNABIS IN 29
ACCORDANCE WITH § 36–407 OF THIS SUBTITLE. 30
46 HOUSE BILL 556
(D) THE DIVISION ADMINISTRATION MAY NOT ISSUE MORE T HAN THE 1
FOLLOWING NUMBER OF LICENSES PER TYPE , INCLUDING LICENSES C ONVERTED 2
UNDER SUBSECTION (B)(1)(II) OF THIS SECTION: 3
(1) FOR STANDARD LICENSE S: 4
(I) 75 GROWER LICENSES ; 5
(II) 100 PROCESSOR LICENSES ; AND 6
(III) 300 DISPENSARY LICENSES ; 7
(2) FOR MICRO LICENSES : 8
(I) 100 GROWER LICENSES ; 9
(II) 100 PROCESSOR LICENSES ; AND 10
(III) 200 10 DISPENSARY LICENSES ; 11
(3) FOR INCUBATOR SPACE LICENSES, 10 LICENSES; AND 12
(4) FOR ON–SITE CONSUMPTION LIC ENSES, 50 LICENSES. 13
(E) (1) THIS SUBSECTION APPLI ES TO ALL LICENSES , INCLUDING 14
LICENSES CONVERTED U NDER SUBSECTION (B)(1)(II) OF THIS SECTION. 15
(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , A PERSON 16
MAY HAVE AN OWNERSHI P INTEREST IN OR CON TROL OF, INCLUDING THE POWER TO 17
MANAGE AND OPERATE , ONLY: 18
(I) FOR STANDARD LICENSE S AND MICRO LICENSES : 19
1. ONE GROWER LICENSEE ; 20
2. ONE PROCESSOR LICENS EE; AND 21
3. NOT MORE THAN TWO FOUR DISPENSARY LICENSEES ; 22
(II) FOR INCUBATOR SPACE LICENSES, NOT MORE T HAN TWO 23
LICENSEES; AND 24
(III) FOR ON–SITE CONSUMPTION LIC ENSES, NOT MORE THAN 25
TWO LICENSEES . 26
HOUSE BILL 556 47
(3) (I) A PERSON WHO OWNS OR C ONTROLS AN INCUBATOR SPACE 1
LICENSEE OR AN ON –SITE CONSUMPTION LIC ENSEE MAY NOT OWN OR CONTROL ANY 2
OTHER CANNABIS LICEN SEE. 3
(II) THE DIVISION ADMINISTRATION SHALL ADOPT 4
REGULATIONS LIMITING A PERSON OR FUND FRO M ACQUIRING A NONMAJ ORITY 5
OWNERSHIP INTEREST I N MULTIPLE CANNABIS BUSINESSES BEYOND TH E 6
LIMITATIONS ESTABLIS HED UNDER THIS SUBSE CTION. 7
(4) THE RESTRICTIONS IN PARAGRAPH (2) OF THIS SUBSECTION D O 8
NOT APPLY TO A PERSO N OR AN ENTITY WHO H OLDS AN OWNERSHIP IN TEREST ONLY 9
AS A PASSIVE INVESTO R. 10
(F) (1) THE HOLDER OF A CANNA BIS LICENSE MAY NOT SURRENDER THE 11
LICENSE AND APPLY FO R A NEW LICENSE IN T HE SAME OR A SIMILAR CATEGORY . 12
(2) THE LIMITATION UNDER PARAGRAPH (1) OF THIS SUBSECTION 13
APPLIES TO: 14
(I) AFFILIATES, HOLDING COMPANIES , PARENT COMPANIES , 15
OR OTHER RELATED ENT ITIES; 16
(II) INDIVIDUALS AND FIRM S WITH IDENTICAL OR 17
SUBSTANTIALLY IDENTI CAL BUSINESS OR ECONOMIC INTEREST S; 18
(III) PERSONS WITH COMMON INVESTMENTS ; AND 19
(IV) FIRMS THAT ARE ECONO MICALLY DEPENDENT ON EACH 20
OTHER THROUGH CONTRA CTUAL OR OTHER RELAT IONSHIPS. 21
(G) A LICENSE ISSUED UNDER THIS TITLE: 22
(1) IS NOT PROPERTY AND DOES NOT CON FER PROPERTY RIGHTS ; 23
AND 24
(2) IS SUBJECT TO: 25
(I) SUSPENSION, REVOCATION , AND RESTRICTIONS 26
AUTHORIZED BY LAW ; AND 27
(II) REGULATIONS AUTHORIZ ED UNDER THIS ARTICL E. 28
48 HOUSE BILL 556
(H) (1) ON AND AFTER JULY 1, 2023, THE HOLDER OF A LICE NSE ISSUED 1
BY THE NATALIE M. LAPRADE MEDICAL CANNABIS COMMISSION WHO DOES N OT 2
CONVERT THE LICENSE : 3
(I) MAY NOT: 4
1. OPERATE UNDER THE LI CENSE; OR 5
2. RENEW THE LICENSE ; BUT 6
(II) MAY CONTINUE TO HOLD THE LICENSE FOR RESA LE TO 7
ANOTHER PERSON FOR C ONVERSION UNDER THIS SUBTITLE. 8
(2) THE PURCHASER OF A LI CENSE SOLD BY A LICE NSE HOLDER WHO 9
DOES NOT CONVERT A L ICENSE UNDER PARAGRA PH (1) OF THIS SUBSECTION I S 10
RESPONSIBLE FOR PAYI NG THE ONE–TIME CONVERSION FEE UNDER § 36–403 OF 11
THIS SUBTITLE. 12
(G) NOTWITHSTANDING ANY P ROVISIONS OF THIS TITL E, THE HOLDER OF A 13
DISPENSARY LICENSE I SSUED BY THE NATALIE M. LAPRADE MEDICAL CANNABIS 14
COMMISSION WHO CONVER TS THE LICENSE OR A REGISTRANT WITH THE NATALIE 15
M. LAPRADE MEDICAL CANNABIS COMMISSION MAY CONTIN UE TO DELIVER 16
MEDICAL CANNABIS UNTIL JULY 1, 2024. 17
(H) A LICENSE ISSUED UNDER THIS TITLE: 18
(1) IS NOT PROPERTY AND DOES NOT CONFER PROP ERTY RIGHTS; AND 19
(2) IS SUBJECT TO: 20
(I) SUSPENSION, REVOCATION, AND RESTRICTIONS 21
AUTHORIZED BY LAW ; AND 22
(II) REGULATIONS AUTHORIZ ED UNDER THIS ARTICLE . 23
(I) (1) ON AND AFTER JULY 1, 2023, THE HOLDER OF A LICE NSE ISSUED 24
BY THE NATALIE M. LAPRADE MEDICAL CANNABIS COMMISSION WHO DOES N OT 25
CONVERT THE LICENSE : 26
(I) MAY NOT: 27
1. OPERATE UNDER THE LI CENSE; OR 28
2. RENEW THE LICENSE ; BUT 29 HOUSE BILL 556 49
(II) MAY CONTINUE TO HOLD THE LICENSE FOR RESA LE TO 1
ANOTHER PERSON FOR C ONVERSION UNDER THIS SUBTITLE. 2
(2) THE PURCHASER OF A LI CENSE SOLD BY A LICE NSE HOLDER WHO 3
DOES NOT CONVERT A L ICENSE UNDER PARAGRA PH (1) OF THIS SUBSECTION I S 4
RESPONSIBLE FOR PAYING THE ONE –TIME CONVERSION FEE UNDER § 36–403 OF 5
THIS SUBTITLE. 6
36–402. 7
(A) IT IS THE INTENT OF T HE GENERAL ASSEMBLY TO PRESERVE 8
PRODUCTION AVAILABIL ITY FOR NEW ADULT –USE CANNABIS CULTIVA TION 9
LICENSES ISSUED UNDE R THIS SUBTITLE. 10
(B) (1) IF THE LICENSE OF A C ANNABIS LICENSEE IS CONVERTED BY THE 11
DIVISION ADMINISTRATION UNDER § 36–401(B)(1)(II) OF THIS SUBTITLE , THE 12
CANNABIS LICENSEE SH ALL: 13
(I) IF THE LICENSEE IS A GROWER, ADHERE TO THE EXPANS ION 14
LIMITATIONS SPECIFIE D UNDER PARAGRAPH (2) OF THIS SUBSECTION ; AND 15
(II) PAY THE CONVERSION F EE REQUIRED UNDER § 36–403 OF 16
THIS SUBTITLE. 17
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 18
PARAGRAPH AND SUBJECT TO SUBPA RAGRAPH (III) OF THIS PARAGRAPH , ON OR 19
BEFORE JANUARY 1, 2026, AN OPERATIONAL BUSINESS T HAT HOLDS A GROWER 20
LICENSE ISSUED BEFOR E OCTOBER 1, 2022 DECEMBER 31, 2022, MAY EXPAND THE 21
CANOPY OF ITS OPERAT IONS AS IT EXISTED O N OCTOBER 1, 2022 DECEMBER 31, 22
2022, AND BASED ON FACILIT Y SQUARE FOOTAGE OF INDOOR CANOPY SPACE OR ITS 23
EQUIVALENT, AS CALCULATED BY THE DIVISION ADMINISTRATION IN ACCORDANCE 24
WITH SUBSECTION (D) OF THIS SECTION, ONLY AS FOLLOWS : 25
1. IF THE CANOPY IS UND ER 25,000 SQUARE FEET , TO 26
25,000 SQUARE FEET OR BY 25% 20%, WHICHEVER IS GREATER ; 27
2. IF THE CANOPY IS AT OR ABOVE 25,000 SQUARE FEET, 28
BY 25% 20%; OR 29
3. IF THE CANNABIS LICE NSEE HAS A SQUARE FO OTAGE 30
EXPANSION THAT WAS P REAPPROVED BEFORE OCTOBER 1, 2022 DECEMBER 31, 31
2022, THE PREAPPROVED EXPA NSION OR 25% 20%, WHICHEVER IS GREATER . 32
50 HOUSE BILL 556
(II) IF THE DIVISION ADMINISTRATION AND AN OPERATIONAL 1
BUSINESS DESCRIBED U NDER SUBPARAGRAPH (I) OF THIS PARAGRAPH AR E UNABLE 2
TO AGREE AS TO THE S QUARE FOOTAGE OF THE CANOPY EXPANSION OF THE 3
LICENSEE’S OPERATIONS AUTHORIZE D UNDER SUBPARAGRAPH (I) OF THIS 4
PARAGRAPH , THE SQUARE FOOTAGE OF THE CANOPY EXPANSION SHALL BE 5
CALCULATED BASED ON THE LICENSEE ’S AVERAGE CANNABIS P RODUCTION IN 6
CALENDAR YEARS 2021 AND 2022. 7
(III) AN OPERATIONAL BUSINE SS DESCRIBED UNDER 8
SUBPARAGRAPH (I) OF THIS PARAGRAPH MA Y BEGIN TO EXPAND IT S CANOPY OF 9
OPERATIONS: 10
1. BY NOT MORE THAN 50% OF THE TOTAL SQUARE 11
FOOTAGE AUTHORIZED U NDER SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH ON 12
OR AFTER JANUARY 1, 2024; AND 13
2. FOR THE REMAINING TO TAL SQUARE FOOTAGE 14
AUTHORIZED UNDER SUB PARAGRAPH (I) OR (II) OF THIS PARAGRAPH ON OR AFTER 15
MAY 1, 2024. 16
(IV) A GROWER LICENSEE MAY NOT OPERATE AN INDOO R 17
CANOPY THAT EXCEEDS 300,000 SQUARE FEET OR ITS E QUIVALENT, AS 18
CALCULATED BY THE DIVISION ADMINISTRATION IN ACCORDANCE WITH 19
SUBSECTION (D) OF THIS SECTION, IF THE GROWER LICENS EE: 20
1. HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE 21
BEFORE OCTOBER 1, 2022; AND 22
2. WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022. 23
(C) A BUSINESS THAT IS ISS UED A NEW CANNABIS L ICENSE UNDER § 36–401 24
OF THIS SUBTITLE MAY NOT OPERATE AN INDOO R CANOPY THAT EXCEED S 300,000 25
SQUARE FEET FOR INDO OR CANOPIES OR ITS E QUIVALENT, AS CALCULATED BY THE 26
DIVISION ADMINISTRATION . 27
(D) (1) (I) THIS PARAGRAPH APPLIES TO ALL LICENSED GROWERS . 28
(II) A LICENSED GROWER SHAL L ACCURATELY CALCULA TE AND 29
REPORT ANNUALLY TO THE DIVISION ADMINISTRATION ITS FLOWERING CANNAB IS 30
PLANT CANOPY AREA . 31
(III) THE CANOPY AREA IS ME ASURED USING THE OUTSIDE 32
BOUNDARIES OF A NY AREA THAT INCLUDE S FLOWERING CANNABIS PLANTS AND ALL 33 HOUSE BILL 556 51
OF THE SPACE WITHIN THE BOUNDARIES IN ACCORDANCE WITH T HE DEFINITION OF 1
“CANOPY” ESTABLISHED UNDER § 36–101 OF THIS TITLE. 2
(IV) FOR THE PURPOSE OF ME ASURING CANOPY , 1 SQUARE 3
FOOT OF INDOOR CANOP Y IS EQUAL TO 4 SQUARE FEET OF OUTDO OR CANOPY. 4
(V) THE MAXIMUM AMOUNT OF SPACE FOR CANNABIS 5
PRODUCTION MAY NOT E XCEED THE CANOPY AUT HORIZED UNDER THIS S ECTION. 6
(VI) IF THE AMOUNT OF SQUA RE FEET OF PRODUCTIO N FOR A 7
LICENSED GROWER EXCE EDS THE CANOPY A UTHORIZED UNDER THIS SECTION AND 8
§ 36–401 OF THIS SUBTITLE, THE COMMISSION MAY : 9
1. REDUCE THE CANOPY OF THE LICENSED GROWER BY 10
THE SAME PERCENTAGE AS IT EXCEEDS THE AU THORIZED CANOPY ; AND 11
2. SEIZE, DESTROY, CONFISCATE, OR PLACE AN 12
ADMINISTRATIVE HOLD ON ANY FLOWERIN G CANNABIS PLANTS PR ODUCED IN 13
EXCESS OF THE CANOPY . 14
(VII) THE ADMINISTRATION SHALL ANNUALLY REPORT TO T HE 15
GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 16
ARTICLE, THE AMOUNT OF CANOPY AREA REPORTED TO THE ADMINISTRATION BY 17
LICENSED GROWERS UND ER ITEM (II) OF THIS PARAGRAPH . 18
(2) THE MAXIMUM AMOUNT OF CANOPY FOR AN OPERAT IONAL 19
BUSINESS THAT HOLDS A LICENSE ISSUED BEF ORE OCTOBER 1, 2022, SHALL BE 20
CALCULATED BASED ON THE MAXIMUM CANOPY O F THE LICENSEE AS 21
SELF–REPORTED BY THE LICE NSEE AND RECORDED BY THE DIVISION NATALIE M. 22
LAPRADE MEDICAL CANNABIS COMMISSION ON OR BEFORE DECEMBER 1, 2022. 23
(E) (1) ON OR BEFORE JULY 1, 2024, THE DIVISION ADMINISTRATION 24
SHALL ADOPT MINIMUM STANDARDS FOR LICENS ED GROWERS TO PROTECT THE 25
RIGHTS OF THE GROWER S AND EMPLOYEES CONC ERNING GRIEVANCES , LABOR 26
DISPUTES, WAGES, RATES OF PAY, HOURS, OR OTHER TERMS OR CO NDITIONS OF 27
EMPLOYMENT . 28
(2) THE STANDARDS SHALL , AT A MINIMUM , PROTECT THE STATE’S 29
INTERESTS BY PROHIBI TING A LABOR OR GANIZATION FROM ENGA GING IN 30
PICKETING, WORK STOPPAGES , BOYCOTTS, OR ANY OTHER ECONOMI C 31
INTERFERENCE WITH TH E OPERATION OF THE L ICENSED GROWER . 32
(3) AS A CONDITION OF LIC ENSURE, THE LICENSED GROWER SHALL: 33
52 HOUSE BILL 556
(I) COMPLY WITH THE STAN DARDS ADOPTED UNDER 1
PARAGRAPH (1) OF THIS SUBSECTION ; AND 2
(II) NEGOTIATE IN GOOD FA ITH WITH EMPLOYEES A ND ANY 3
LEGITIMATE LABOR ORG ANIZATION RECOGNIZED BY THE DIVISION 4
ADMINISTRATION . 5
36–403. 6
(A) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT HOLDS A 7
CANNABIS LICENS E AND WAS PHYSICALLY AND ACTIVELY ENGAGED IN THE 8
CULTIVATION OR PROCE SSING OF MEDICAL CAN NABIS BEFORE OCTOBER 1, 2022. 9
(2) EACH SUBJECT TO SUBSECTION (F) OF THIS SECTION , EACH 10
GROWER OR PROCESSOR SHALL PAY THE FOLLOW ING ONE–TIME CONVERSION FEE 11
BASED ON THE TOTAL GROSS REVE NUE OF THE GROWER OR PROCESSOR IN 2022: 12
(I) $100,000 IF THE GROSS REVENUE WAS LESS THAN 13
$1,000,000; 14
(II) $500,000 IF THE GROSS REVENUE WAS AT LEAST 15
$1,000,000, BUT NOT MORE THAN $5,000,000; 16
(III) $1,000,000 IF THE GROSS REVE NUE WAS MORE THAN 17
$5,000,000, BUT NOT MORE THAN $10,000,000; 18
(IV) $1,500,000 IF THE GROSS REVENUE WAS MORE THAN 19
$10,000,000, BUT NOT MORE THAN $15,000,000; 20
(V) $2,000,000 IF THE GROSS REVENUE WAS MORE THAN 21
$15,000,000, BUT NOT MORE THAN $20,000,000; OR 22
(VI) $2,500,000 IF THE GROSS REVENUE WAS MORE THAN 23
$20,000,000. 24
(2) (I) SUBJECT TO SUBSECTION (E) OF THIS SECTION AND EXCEPT 25
AS PROVIDED IN SUBPA RAGRAPH (II) OF THIS PARAGRAPH : 26
1. EACH GROWER AND PROC ESSOR SHALL PAY A 27
ONE–TIME CONVERSION FEE OF 10% OF THE TOTAL GROSS R EVENUE OF THE 28
GROWER OR PROCESSOR IN 2022, BUT NOT MORE THAN $2,000,000; AND 29
HOUSE BILL 556 53
2. EACH DISPENSARY SHAL L PAY A ONE –TIME 1
CONVERSION FEE OF 8% OF THE TOTAL GROSS R EVENUE OF THE DISPEN SARY IN 2
2022, BUT NOT MORE THAN $2,000,000. 3
(II) THE AMOUNT OF THE CON VERSION FEES IN SUBP ARAGRAPH 4
(I) OF THIS PARAGRAPH MA Y NOT BE LESS THAN $100,000. 5
(3) IF A BUSINESS HOLDS A GROWER AND PROCESSOR LICENSE, THE 6
FEE SHALL BE BASED O N TOTAL GROSS REVENU E FROM BOTH LICENSE TYPES. 7
(B) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT HOLDS A 8
CANNABIS LICENSE AND WAS PHYSICALLY AND A CTIVELY ENGAGED IN T HE 9
DISPENSING OF MEDICA L CANNABIS BEFORE OCTOBER 1, 2022. 10
(2) EACH SUBJECT TO SUBSECTION (F) OF THIS SECTION , EACH 11
DISPENSARY SHALL PAY THE FOLLOW ING ONE–TIME CONVERSION FEE BASED ON 12
THE GROSS REVENUE OF THE DISPENSARY IN 2022: 13
(I) $100,000 IF THE GROSS REVENUE WAS LESS THAN 14
$1,000,000; 15
(II) $250,000 IF THE GROSS REVENUE WAS AT LEAST 16
$1,000,000, BUT NOT MORE THAN $5,000,000; 17
(III) $500,000 IF THE GROSS REVENUE WAS MORE THAN 18
$5,000,000, BUT NOT MORE THAN $10,000,000; 19
(IV) $1,000,000 IF THE GROSS REVENUE WAS MORE THAN 20
$10,000,000, BUT NOT MORE THAN $15,000,000; 21
(V) $1,500,000 IF THE GROSS REVENUE WAS MORE THAN 22
$15,000,000, BUT NOT MORE THAN $20,000,000; OR 23
(VI) $2,000,000 IF THE GROSS REVENUE WAS MORE THAN 24
$20,000,000. 25
(C) (B) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT: 26
(I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE 27
OCTOBER 1, 2022; AND 28
(II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022. 29
54 HOUSE BILL 556
(2) A SUBJECT TO SUBSECTION (F) (E) OF THIS SECTION, A GROWER 1
OR PROCESSOR SHALL P AY A ONE–TIME CONVERSION FEE OF $50,000. 2
(3) A SUBJECT TO SUBSECTION (F) (E) OF THIS SECTION , A 3
DISPENSARY SHALL P AY A ONE–TIME CONVERSION FEE OF $25,000. 4
(D) (C) (1) THIS SUBSECTION APPLI ES ONLY TO AN APPLIC ANT 5
APPLYING FOR A CANNA BIS LICENSE UNDER § 36–404 OF THIS SUBTITLE. 6
(2) AN APPLICANT FOR A ST ANDARD LICENSE , AN INCUBATOR SPACE 7
LICENSE, OR AN ON–SITE CONSUMPTION LICENSE SHALL PAY AN APPLICA TION FEE 8
OF $5,000. 9
(3) AN APPLICANT FOR A MI CRO LICENSE SHALL PA Y AN 10
APPLICATION FEE OF $1,000. 11
(E) (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 12
DIVISION PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , THE ADMINISTRATION 13
SHALL ESTABLISH LICENSING AND RENEWAL FEES FOR ALL CANNABIS LICENSES . 14
(2) THE RENEWAL FEES ESTA BLISHED UNDER PARAGR APH (1) OF 15
THIS SUBSECTION MAY NOT EXCEED 10% OF THE CANNABIS LICE NSEE’S ANNUAL 16
GROSS REVENUE . 17
(2) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION , 18
THE LICENSING AND RE NEWAL FEES ESTABLISH ED UNDER PARAGRAPH (1) OF THIS 19
SUBSECTION FOR STAND ARD CANNABIS LICENSE ES MAY NOT EXCEED : 20
(I) FOR INITIAL LICENSE FEES, $50,000; AND 21
(II) FOR RENEWAL LICENSE FEES, THE LESSER OF 10% OF THE 22
STANDARD CANNABIS LI CENSEE’S ANNUAL GROSS REVEN UE OR $50,000. 23
(3) THE ADMINISTRATION SHALL REDUCE LICENSING AND RENEWAL 24
FEES BY AT LEAST 50% FOR SOCIAL EQUITY LI CENSES, MICRO LICENSES , INCUBATOR 25
SPACE LICENSES , AND ON–SITE CONSUMPTI ON LICENSES. 26
(F) (E) (1) THE ONE–TIME CONVERSION FEES UNDER 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 55
(2) THE AMOUNT OF ANY LICENSING OR RENEWAL FEE PAID BY A 1
BUSINESS FOR FISCAL YEAR 2023 TO THE NATALIE M. LAPRADE MEDICAL 2
CANNABIS COMMISSION SHALL BE C REDITED AGAINST THE ONE–TIME CONVERSION 3
FEE ASSESSED UNDER T HIS SECTION. 4
(G) (F) ALL FEES COLLECTED UN DER THIS SECTION SHA LL BE PAID TO 5
THE DIVISION ADMINISTRATION . 6
36–404. 7
(A) (1) ON OR BEFORE JANUARY 1, 2024, THE DIVISION 8
ADMINISTRATION SHALL BEGIN ISSUING FIRST ROUND LICENSES IN ACCORDANCE 9
WITH SUBSECTION (D) OF THIS SECTION. 10
(2) ON OR AFTER MAY 1, 2024, THE DIVISION ADMINISTRATION 11
SHALL BEGIN ISSUING SECOND ROUND LICENSES IN AC CORDANCE WITH 12
SUBSECTIONS (E) OR (F) OF THIS SECTION. 13
(3) SUBJECT TO PARAGRAPHS (1) AND (2) OF THIS SUBSECTION , THE 14
DIVISION ADMINISTRATION MAY ISSUE LICENSES I N ACCORDANCE WITH 15
SUBSECTION (G) OF THIS SECTION. 16
(B) (1) THE DIVISION ADMINISTRATION SHALL: 17
(I) CONDUCT EXTENSIVE OU TREACH TO SMALL , MINORITY, 18
AND WOMEN BUSINESS O WNERS AND ENTREPRENE URS WHO MAY HAVE AN INTEREST 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 WHICH TH E DIVISION ADMINISTRATION 29
ISSUED THE REQUEST F OR APPLICATIONS ; 30
56 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 ADMINISTRATION . 5
(2) THE DIVISION ADMINISTRATION MAY SUSPEND , FINE, RESTRICT, 6
OR REVOKE A CANNABIS LICENSE IF IT IS DETERMINED THAT A CANNA BIS LICENSEE 7
HAS NOT COMPLIED WIT H STATEMENTS IN THE APPLICATION, INCLUDING 8
STATEMENTS ABOUT STA NDARDS OF OPERATION OR EMPLOYMENT PRACTI CES 9
RELATED TO DIVERSITY , EQUITY, AND INCLUSION . 10
(3) THE DIVISION ADMINISTRAT ION 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 CANNABIS BU SINESS AT THE TIME O F 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 TOTAL NUMBE R 20
OF LICENSES AUTHORIZ ED UNDER § 36–401(D) OF THIS SUBTITLE; OR 21
(V) CONDUCT A MARKET DEMAND STUD Y BEFORE THE FIRST 22
ROUND LICENSES ARE I SSUED. 23
(4) THE DIVISION ADMINISTRATION MAY ADOPT REGULATION S 24
CONCERNING THE EQUIT Y AND FAIRNESS OF TH E POOL OF APPLICANTS 25
THROUGHOUT THE APPLI CATION PROCESS . 26
(C) TO BE LICENSED , AN APPLICANT SHALL S UBMIT TO THE DIVISION 27
ADMINISTRATION : 28
(1) AN APPLICATION FEE I N ACCORDANCE WITH § 36–403 OF THIS 29
SUBTITLE; AND 30
(2) AN APPLICATION DEVEL OPED BY THE DIVISION ADMINISTRATION 31
UNDER THIS TITLE . 32 HOUSE BILL 556 57
(D) (1) FOR THE FIRST ROUND , SUBJECT TO PARAGRAPH S (2) AND (3) OF 1
THIS SUBSECTION , THE DIVISION ADMINISTRATION SHALL ENTER EACH SOC IAL 2
EQUITY APPLICANT THA T MEETS THE MINIMUM QUALIFICATIONS ESTAB LISHED BY 3
THE DIVISION ADMINISTRATION INTO A LOTTERY AND I SSUE TO SOC IAL EQUITY 4
APPLICANTS NOT MORE THAN: 5
(I) FOR STANDARD LICENSE S: 6
1. 20 GROWER LICENSES ; 7
2. 40 PROCESSOR LICENSES ; AND 8
3. 80 DISPENSARY LICENSES ; 9
(II) FOR MICRO LICENSES : 10
1. 30 GROWER LICENSES ; 11
2. 30 PROCESSOR LICENSES ; AND 12
3. 75 10 DISPENSARY LICENSES ; AND 13
(III) 10 INCUBATOR SPACE LICE NSES. 14
(2) THE DIVISION ADMINISTRATION SHALL DETERMINE WHET HER 15
AN APPLICATION MEETS THE MINIMUM QUALIFIC ATIONS FOR THE LOTTE RY ON A 16
PASS–FAIL BASIS, AS DETERMINED BY THE DIVISION ADMINISTRATION , AFTER 17
EVALUATING: 18
(I) A DETAILED OPERATION AL PLAN FOR THE SAFE , SECURE, 19
AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS; 20
(II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF 21
SUCCESS AND SUFFICIE NT BUSINESS ABILITY AND EXPERIENCE ON THE PART OF 22
THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING 23
CONDITIONS; AND 24
(III) A DETAILED DIVERSITY PLAN. 25
(3) (I) IF AN APPLICANT SEEKI NG SOCIAL EQUITY STA TUS IS FROM 26
OUT–OF–STATE, THE APPLICANT MUST S UBMIT WITH THE APPLICATION EVIDENCE 27
THAT THE APPLICANT M EETS THE CRITERIA FO R A SOCIAL EQUITY AP PLICANT 28 58 HOUSE BILL 556
ESTABLISHED UNDER TH IS TITLE BEFORE THE ADMINISTRATION MAY CO NSIDER 1
THE APPLICATION . 2
(II) FIRST ROUND APPLICATI ON SUBMISSIONS FOR A LL 3
LICENSE TYPES ARE LI MITED TO SOCIAL EQUITY APPLIC ANTS. 4
(4) (I) ON OR BEFORE JANUARY 1, 2024, THE ADMINISTRATION 5
SHALL SUBMIT AN INTE RIM REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE 6
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE ABILITY OF MI CRO 7
DISPENSARY LICENSEES TO SAFELY AND SECURELY DISP ENSE CANNABIS . 8
(II) ON OR BEFORE DECEMBER 31, 2024, THE ADMINISTRATION 9
SHALL SUBMIT A REPOR T TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 10
2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE ABILITY OF MI CRO 11
DISPENSARY LICENSEES TO SAFELY AND SECURELY DISP ENSE CANNABIS . 12
(E) FOR THE SECOND ROUND OF LICENSING , THE DIVISION 13
ADMINISTRATION SHALL ISSUE LICENSES IN ACCORDANCE WITH S UBSECTION (F) 14
OR (G) OF THIS SECTION. 15
(E) (F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF THE 16
DIVISION ADMINISTRATION , IN CONSULTATION WITH THE CERTIFICATION AG ENCY 17
DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER § 14–303(B) OF THE STATE 18
FINANCE AND PROCUREMENT ARTICLE, THE GOVERNOR’S OFFICE OF SMALL, 19
MINORITY, AND WOMEN BUSINESS AFFAIRS, THE GENERAL ASSEMBLY, AND THE 20
OFFICE OF THE ATTORNEY GENERAL, DETERMINES THAT THE APPLICANTS 21
AWARDED A LICENSE UN DER SUBSECTION (D) OF THIS SECTION ARE NOT DIVERSE 22
AND A DISPARITY STUD Y DETERMINES THAT TH ERE IS A COMPELLING INTEREST TO 23
IMPLEMENT REMEDIAL M EASURES TO ASSIST MINORITIES AN D WOMEN IN THE 24
CANNABIS INDUSTRY A DISPARITY STUDY DE MONSTRATES A STRONG BASIS IN 25
EVIDENCE OF BUSINESS DISCRIMINATION AGAIN ST FIRMS OWNED BY MI NORITIES 26
AND WOMEN IN THE MARYLAND CANNABIS MAR KET, THE DIVISION 27
ADMINISTRATION SHALL ENTER EACH APPLICANT THAT M EETS THE MINIMUM 28
QUALIFICATIONS ESTAB LISHED BY THE DIVISION INTO A LOTTE RY AND ISSUE TO 29
THE APPLICANTS A SECOND ROUND OF LI CENSES, APPLYING MINIMUM LIC ENSING 30
QUALIFICATIONS AND EMPLOYING REMEDIAL M EASURES CONSISTENT W ITH 31
CONSTITUTIONAL REQUIREMENTS , FOR NOT MORE THAN : 32
(I) FOR STANDARD LICENSE S: 33
1. 25 GROWER LICENSES ; 34
2. 25 PROCESSOR LICENSES ; AND 35
HOUSE BILL 556 59
3. 120 DISPENSARY LICENSES ; 1
(II) FOR MICRO LICENSES : 2
1. 70 GROWER LICENSES ; AND 3
2. 70 PROCESSOR LICENSES ; AND 4
3. 125 190 DISPENSARY LICENSES ; 5
(III) 10 INCUBATOR SPACE LICE NSES; AND 6
(IV) 15 ON–SITE CONSUMPTION LIC ENSES. 7
(2) THE DIVISION SHALL DETERM INE WHETHER AN APPLI CATION 8
MEETS THE MINIMUM QU ALIFICATIONS FOR A L OTTERY BASED ON A PA SS–FAIL 9
BASIS, AS DETERMINED BY THE DIVISION, AFTER EVALUATING : 10
(I) A DETAILED OPERATION AL PLAN FOR THE SAFE , SECURE, 11
AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS; 12
(II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF 13
SUCCESS AND SUFFICI ENT BUSINESS ABILITY AND EXPERIENCE ON TH E PART OF 14
THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING 15
CONDITIONS; 16
(III) A DETAILED DIVERSITY PLAN; AND 17
(IV) REMEDIAL MEASURES ES TABLISHED IN ACCORDA NCE 18
WITH A DISPARITY STU DY. 19
(2) IF THE DIVISION ADMINISTRATION , IN CONSULTATION WITH THE 20
CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER § 21
14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE 22
GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE 23
GENERAL ASSEMBLY, AND THE OFFICE OF THE ATTORNEY GENERAL, DETERMINES 24
THAT A LOTTERY SYSTE M EMPLOYING REMEDIAL MEASURES ESTABLISHED IN 25
ACCORDANCE WITH A DI SPARITY STUDY CAN BE CONDUCTED CONSISTENT WITH 26
CONSTITUTIONAL REQUI REMENTS, THE DIVISION ADMINISTRATION SHALL AWARD 27
LICENSES UNDER P ARAGRAPH (1) OF THIS SUBSECTION T HROUGH A LOTTERY 28
PROCESS THAT EMPLOYS REMEDIAL MEASURES . 29
(F) (G) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS 30
SUBSECTION, IF THE DIVISION ADMINISTRATION , IN CONSULTATION WITH THE 31 60 HOUSE BILL 556
CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER § 1
14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE 2
GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE 3
GENERAL ASSEMBLY, AND THE OFFICE OF THE ATTORNEY GENERAL, DETERMINES 4
THAT THE APPLICANTS AWARDED A LICENSE UNDER SUBS ECTION (D) OF THIS 5
SECTION ARE DIVERSE REGARDLESS OF THE RE SULTS OF A DISPARITY STUDY DOES 6
NOT DEMONSTRATE A ST RONG BASIS IN EVIDEN CE OF BUSINESS DISCR IMINATION 7
AGAINST FIRMS OWNED BY MINORITIES AND WO MEN IN THE MARYLAND CANNABIS 8
MARKET, THE DIVISION ADMINISTRATION SHALL ENTER EACH APP LICANT THAT 9
MEETS THE MINIMUM QU ALIFICATIONS ESTABLI SHED BY THE DIVISION 10
ADMINISTRATION INTO A LOTTERY AND I SSUE TO THE APPLICAN TS NOT MORE 11
THAN: 12
(I) FOR STANDARD LICENSE S: 13
1. 25 GROWER LICENSES ; 14
2. 25 PROCESSOR LICENSES ; AND 15
3. 120 DISPENSARY LICENSES ; 16
(II) FOR MICRO LICENSES : 17
1. 70 GROWER LICENSES ; AND 18
2. 70 PROCESSOR LICENSES ; AND 19
3. 125 190 DISPENSARY LICENSES ; 20
(III) 10 INCUBATOR SPACE LICE NSES; AND 21
(IV) 15 ON–SITE CONSUMPTION LIC ENSES. 22
(2) THE DIVISION ADMINISTRATION SHALL DETERMINE WHET HER 23
AN APPLICATION MEETS THE MINIMUM QUALIFIC ATIONS FOR A LOTTERY BASED ON 24
A PASS–FAIL BASIS, AS DETERMINED BY THE DIVISION ADMINISTRATION , AFTER 25
EVALUATING: 26
(I) A DETAILED OPERATIONAL PLAN FOR THE SAFE , SECURE, 27
AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS; 28
(II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF 29
SUCCESS AND SUFFICIE NT BUSINESS ABILITY AND EXPERIENCE ON TH E PART OF 30 HOUSE BILL 556 61
THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING 1
CONDITIONS; 2
(III) A DETAILED DIVERSITY PLAN; AND 3
(IV) FOR ALL LICENSE TYPE S EXCEPT MICRO LICEN SES, 4
WHETHER OR NOT THE A PPLICANT QUALIFIES A S A SOCIAL EQUITY AP PLICANT. 5
(3) SECOND ROUND APPLICAT ION APPLICATION SUBMISSIONS FOR 6
MICRO LICENSES UNDER THIS SUBSECTION ARE LIMITED TO SOCIAL EQ UITY 7
APPLICANTS. 8
(G) (H) (1) FOR CANNABIS LICENSE AWARDS SUBSEQUENT TO THE 9
ROUND SPECIFIED UNDE R PARAGRAPH (2) SUBSECTION (F) OR (G) OF THIS 10
SUBSECTION SECTION, THE DIVISION ADMINISTRATION SHALL AWARD LICENSES IN 11
ACCORDANCE WITH THIS SUBSECTION. 12
(2) THE DIVISION ADMINISTRATION SHALL AWARD LICENSES AS 13
NEEDED IN ACCORDANCE WITH A MARKET DEMAND STUDY. 14
(2) (3) THE DIVISION ADMINISTRATION MAY: 15
(I) SHALL DETERMINE WHETHER AN APPLICATI ON MEETS THE 16
MINIMUM QUALIFICATIO NS FOR A LOTTERY BAS ED ON FACTORS THAT I T DEVELOPS; 17
AND 18
(II) MAY LIMIT SOME OR ALL OF THE LICENSES ISSUED UNDER 19
THIS PARAGRAPH TO SO CIAL EQUITY APPLICAN TS OR MINORITY BUSINESS 20
APPLICANTS, IF DOING SO IS NEEDED TO ENSU RE DIVERSITY AND INC LUSION IN THE 21
INDUSTRY, AS WARRANTED BY THE DISPARITY STUDY ; AND 22
(II) EMPLOY REMEDIAL MEAS URES, CONSISTENT WITH 23
CONSTITUTIONAL REQUI REMENTS, IF THE DIVISION ADMINISTRATION , IN 24
CONSULTATION WITH TH E CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF 25
PUBLIC WORKS UNDER § 14–303(B) OF THE STATE FINANCE AND PROCUREMENT 26
ARTICLE, THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS 27
AFFAIRS, THE GENERAL ASSEMBLY, AND THE OFFICE OF THE ATTORNEY 28
GENERAL, DETERMINES TH AT A DISPARITY STUDY DEMONSTRATES A STRON G BASIS 29
IN EVIDENCE OF BUSIN ESS DISCRIMINATION A GAINST FIRMS OWNED B Y MINORITIES 30
AND WOMEN IN THE MARYLAND CANNABIS MAR KET. 31
(I) (1) TO THE EXTENT PRACTIC ABLE AND AUTHORIZED BY THE U.S. 32
CONSTITUTION, A CANNABIS LICENSEE SHALL COMPL Y WITH THE STATE’S 33
MINORITY BUSINESS ENTERPRISE PROGRAM. 34 62 HOUSE BILL 556
(2) THE ADMINISTRATION , IN CONSULTATION WITH THE 1
CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER § 2
14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE GOVERNOR’S 3
OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE GENERAL 4
ASSEMBLY, AND THE OFFICE OF THE ATTORNEY GENERAL, SHALL REVIEW THE 5
DISPARITY STUDY REQU IRED BY CHAPTER 26 OF THE ACTS OF 2022 TO EVALUATE 6
WHETHER APPLICATION OF THE STATE’S MINORITY BUSINESS ENTERPRISE 7
PROGRAM TO CANNABIS L ICENSES WOULD COMPLY WITH THE CITY OF RICHMOND V. 8
J.A. CROSON CO., 488 U.S. 469, AND ANY SUBSEQUENT F EDERAL OR 9
CONSTITUTIONAL REQUI REMENTS. 10
(3) ON OR BEFORE 6 MONTHS AFTER THE ISS UANCE OF A CANNABIS 11
LICENSE UNDER § 36–401 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE, 12
THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, 13
IN CONSULTATION WITH THE OFFICE OF THE ATTORNEY GENERAL AND THE OFFICE 14
OF SOCIAL EQUITY WITHIN THE ALCOHOL, TOBACCO, AND CANNABIS COMMISSION 15
AND THE CANNABIS LIC ENSEE, SHALL ESTABLISH A CL EAR PLAN FOR SETTING 16
REASONABLE AND APPRO PRIATE MINORITY BUSI NESS ENTERPRISE PART ICIPATION 17
GOALS AND PROCEDURES FOR THE PROCUREMENT OF GOODS AND SERVICE S 18
RELATED TO CANNABIS , INCLUDING THE CULTIVATION, MANUFACTURING , AND 19
DISPENSING OF CANNAB IS. 20
(4) TO THE EXTENT PRACTIC ABLE, THE GOALS AND PROCED URES 21
SPECIFIED IN PARAGRA PH (3) OF THIS SUBSECTION S HALL BE BASED ON THE 22
REQUIREMENTS OF TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND 23
PROCUREMENT ARTICLE AND THE REGUL ATIONS IMPLEMENTING THAT SUBTITLE. 24
36–405. 25
(A) A LOCAL JURISDICTION POLITICAL SUBDIVISIO N MAY: 26
(1) ESTABLISH REASONABLE ZONING REQUIREMENTS FOR CANNABIS 27
BUSINESSES; AND 28
(2) DECIDE HOW TO DISTRI BUTE ITS ALLOCATION OF REVENUE 29
UNDER § 2–1302.2 OF THE TAX – GENERAL ARTICLE. 30
(B) A LOCAL JURISDICTION POLITICAL SUBDIVISIO N MAY NOT: 31
(1) IMPOSE A TAX ON CANN ABIS; 32
(2) (1) ESTABLISH ZONING OR OTHER REQUIREMENTS T HAT 33
UNDULY BURDEN A CANN ABIS LICENSEE; 34 HOUSE BILL 556 63
(3) (2) IMPOSE LICENSING, OPERATING, OR OTHER FEES OR 1
REQUIREMENTS ON A CA NNABIS LICENSEE THAT ARE DISPROPORTIONATE LY 2
GREATER OR MORE BURD ENSOME THAN THOSE IM POSED ON OTHER BUSIN ESSES 3
WITH A SIMILAR IMPAC T ON THE AREA WHERE THE CANNABIS LICENSE E IS 4
LOCATED; 5
(3) PROHIBIT TRANSPORTATION TH ROUGH OR DELIVERIES WITHIN 6
THE LOCAL JURISDICTION POLITICAL SUBDIVISIO N BY CANNABIS ESTABLISHMENTS 7
BUSINESSES LOCATED IN OTHER JURISDICTIONS POLITICAL SUBDIVISIO NS; 8
(4) PREVENT AN ENTITY WH OSE LICENSE MAY BE C ONVERTED UNDER 9
§ 36–401(B)(1)(II) OF THIS SUBTITLE AND THAT IS IN COMPLIANC E WITH ALL 10
RELEVANT MEDICAL CAN NABIS REGULATIONS FR OM BEING GRANTED THE LICENSE 11
CONVERSION ; OR 12
(5) NEGOTIATE OR ENTER I NTO AN AGREEMENT WIT H A CANNABIS 13
ESTABLISHMENT OR A C ANNABIS ESTABLISHMEN T APPLICANT LICENSEE OR AN 14
APPLICANT FOR A CANN ABIS LICENSE REQUIRING THAT THE C ANNABIS 15
ESTABLISHMENT LICENSEE OR APPLICANT PROVIDE MONEY, DONATIONS, 16
IN–KIND CONTRIBUTIONS , SERVICES, OR ANYTHING OF VALUE TO THE LOCAL 17
JURISDICTION POLITICAL SUBDIVISIO N. 18
(C) THE USE OF A FACILITY BY A CANNABIS LICENSEE IS NOT REQUIRED TO 19
BE SUBMITTED TO , OR APPROVED BY , A COUNTY OR MUNICIPA L ZONING BOARD , 20
AUTHORITY, OR UNIT IF IT THE FACILITY: 21
(1) WAS PROPERLY ZONED A ND OPERATING ON OR B EFORE JANUARY 22
1, 2023; OR 23
(2) IS USED BY A GROWER, PROCESSOR, OR DISPENSARY THAT : 24
(I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE 25
OCTOBER 1, 2022; AND 26
(II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022. 27
(D) A POLITICAL SUBDIVISIO N OR SPECIAL TAXING DISTRICT MAY NOT 28
IMPOSE A TAX ON CANNABIS. 29
36–406. 30
64 HOUSE BILL 556
(A) THE DIVISION ADMINISTRATION MAY ISSUE INCUBATOR SPACE 1
LICENSES AUTHORIZING AN A NONPROFIT ENTITY TO OPERATE A LICENSED 2
PREMISES IN WHICH MI CRO LICENSEES MAY OP ERATE A CANNABIS BUS INESS. 3
(B) SUBJECT TO SUBSECTION (C) (D) OF THIS SECTION , THE MARYLAND 4
ECONOMIC DEVELOPMENT CORPORATION , IN CONSULTATION WITH THE DIVISION 5
ADMINISTRATION , SHALL ACQUIRE AND CO NSTRUCT OR REFURBISH AT LEAST ONE 6
FACILITY TO OPERATE AN INCUBATOR SPACE . 7
(C) THE MARYLAND ECONOMIC DEVELOPMENT CORPORAT ION MAY ENTER 8
INTO A MEMORANDUM OF UNDERSTANDING WITH A NONPROFIT ORGANIZATI ON TO 9
OPERATE A FACILITY U NDER SUBSECTION (B) OF THIS SECTION IF T HE DIVISION 10
AND THE CORPORATION PROVIDE O VERSIGHT OF THE FACI LITY. 11
(C) AFTER THE COMPLETION OF THE CONSTRUCTION OR REFURBISHMENT 12
OF A FACILITY ACQUIR ED UNDER SUBSECTION (B) OF THIS SECTION, OWNERSHIP OF 13
THE FACILITIES SHALL BE TRANSFERRED TO TH E DEPARTMENT OF GENERAL 14
SERVICES. 15
(D) THE DEPARTMENT OF GENERAL SERVICES SHALL CONTRA CT WITH A 16
NONPROFIT ORGANIZATI ON TO OPERATE A FACILITY U NDER SUBSECTION (B) OF 17
THIS SECTION. 18
(D) (E) AN INCUBATOR SPACE LI CENSEE MAY PURCHASE EQUIPMENT TO 19
BE USED BY OTHER INC UBATOR SPACE LICENSE ES IN THE SAME INCUB ATOR SPACE. 20
(D) (E) (F) THE DIVISION ADMINISTRATION SHALL ADOPT REGULAT IONS TO 21
ESTABLISH A MARYLAND INCUBATOR PROGRAM BASED ON THE BEST PRACTICES IN 22
OTHER STATES . 23
36–407. 24
(A) (1) A PERSON SHALL OBTAIN AN ON–SITE CONSUMPTION LIC ENSE 25
FROM THE ADMINISTRATION BEFORE OPERATING A PREMISES WHERE CANNABIS 26
MAY BE CONSUMED . 27
(2) THE DIVISION ADMINISTRATION MAY ISSUE ON –SITE 28
CONSUMPTION LICENSES AUTHORIZING AN ENTIT Y TO OPERATE A LICEN SED 29
PREMISES IN WHICH CA NNABIS MAY BE CONSUMED , BUT NOT SMOKED INDOO RS, IN 30
ACCORDANCE WITH THIS TITLE AND ANY REGULA TIONS ADOPTED UNDER THIS 31
TITLE. 32
(2) (3) AN ON–SITE CONSUMPTION EST ABLISHMENT MAY OPERA TE 33
ONLY IF THE COUNTY A ND, IF APPLICABLE , THE MUNICIPALITY , WHERE THE 34 HOUSE BILL 556 65
BUSINESS IS LOCATED HAVE ISSUED A PERMIT OR LICENSE THAT EXPR ESSLY 1
ALLOWS THE OPERATION OF THE ON–SITE CONSUMPTION EST ABLISHMENT . 2
(B) SUBJECT TO THE LIMITA TIONS IN § 36–405 OF THIS SUBTITLE , A 3
COUNTY AND, IF APPLICABLE, A MUNICIPALITY MAY : 4
(1) PROHIBIT THE OPERATI ON OF ON –SITE CONSUMPTION 5
ESTABLISHMENTS ; 6
(2) PROHIBIT OR RESTRICT THE SMOKING OR VAPIN G OF CANNABIS 7
AT ON–SITE CONSUMPTION ESTABLIS HMENTS; OR 8
(3) ADOPT ZONING AND PLA NNING REQUIREMENTS F OR ON–SITE 9
CONSUMPTION ESTABLIS HMENTS. 10
(C) (1) AN ON–SITE CONSUMPTION LIC ENSE AUTHORIZES AN E NTITY TO 11
DISTRIBUTE CANNABIS OR CANNABIS PRODUCTS FOR ON–SITE CONSUMPTION . 12
(2) AN ON–SITE CONSUMPTION LIC ENSE DOES NOT AUTHOR IZE THE 13
HOLDER OF THE LICENS E TO: 14
(I) CULTIVATE CANNABIS ; 15
(II) PROCESS CANNABIS OR CANNABIS–INFUSED PRODUCTS ; OR 16
(III) ADD CANNABIS TO FOOD PREPARED OR SERVED O N THE 17
PREMISES. 18
(D) A FOOD SERVICE FACILITY, AS DEFINED IN § 21–301 OF THE HEALTH – 19
GENERAL ARTICLE, MAY APPLY FOR A LICE NSE TO OPERATE AN ON –SITE 20
CONSUMPTION ESTABLIS HMENT. 21
(E) THE DIVISION SHALL: 22
(D) A BUSINESS THAT HAS AV ERAGE DAILY RECEIPTS FROM THE SALE OF 23
BAKERY GOODS THAT AR E AT LEAST 50% OF THE AVERAGE DAILY RECEIPTS OF THE 24
BUSINESS MAY APPLY F OR A LICENSE TO OPER ATE AN ON–SITE CONSUMPTION 25
ESTABLISHMENT . 26
(E) THE ADMINISTRATION SHALL : 27
(1) MAINTAIN A LIST OF A LL ON–SITE CONSUMPTION 28
ESTABLISHMENTS IN TH E STATE; AND 29
66 HOUSE BILL 556
(2) MAKE THE LIST AVAILABLE ON ITS WEBSITE. 1
(F) AN ON–SITE CONSUMPTION EST ABLISHMENT MAY NOT : 2
(1) ALLOW ON–DUTY EMPLOYEES OF TH E BUSINESS TO CONSUM E 3
CANNABIS ON THE LICE NSED PREMISES ; 4
(2) DISTRIBUTE OR ALLOW THE DISTRIBUTION OF FREE SAMPLES OF 5
CANNABIS ON THE LICENSED PREMI SES; 6
(3) ALLOW THE CONSUMPTIO N OF ALCOHOL ON THE LICENSED 7
PREMISES; 8
(4) ALLOW THE SMOKING OR VAPING OF TOBACCO OR TOBACCO 9
PRODUCTS ON THE LICE NSED PREMISES ; 10
(5) ALLOW AN ACTIVITY ON THE LICENSED PREMISE S THAT WOULD 11
REQUIRE AN A DDITIONAL LICENSE UN DER THIS TITLE , INCLUDING GROWING , 12
PROCESSING, OR DISPENSING ; 13
(6) ALLOW THE INDOOR SMO KING OF CANNABIS OR CANNABIS 14
PRODUCTS ON THE LICE NSED PREMISES ; 15
(7) ALLOW THE USE OR CON SUMPTION OF CANNABIS BY A PATRON 16
WHO DISPLAYS ANY VISIBLE SIGNS OF INT OXICATION; OR 17
(7) (8) ADMIT ONTO THE LICEN SED PREMISES AN INDI VIDUAL WHO 18
IS UNDER THE AGE OF 21 YEARS. 19
(G) AN ON–SITE CONSUMPTION EST ABLISHMENT SHALL : 20
(1) REQUIRE ALL EMPLOYEE S TO SUCCESSFULLY CO MPLETE AN 21
ANNUAL RESPONSIBLE VENDOR TRAINING PROG RAM AUTHORIZED UNDER THIS 22
TITLE; AND 23
(2) ENSURE THAT THE DISP LAY AND CONSUMPTION OF CANNABIS OR 24
CANNABIS PRODUCTS AR E NOT VISIBLE FROM O UTSIDE OF THE LICENS ED 25
PREMISES. 26
(H) (1) AN ON–SITE CANNABIS ESTABL ISHMENT SHALL EDUCAT E 27
CONSUMERS BY PROVIDING INF ORMATIONAL MATERIALS REGARDING THE SAFE 28
CONSUMPTION OF CANNA BIS. 29
HOUSE BILL 556 67
(2) THE EDUCATIONAL MATER IALS PROVIDED UNDER PARAGRAPH 1
(1) OF THIS SUBSECTION M UST BE BASED ON THE REQUIREMENTS ESTABLI SHED BY 2
THE CANNABIS PUBLIC HEALTH ADVISORY COUNCIL ESTABLISHED UNDER § 3
13–4502 OF THE HEALTH – GENERAL ARTICLE. 4
(I) THIS SECTION DOES NOT PROHIBIT A COUNTY OR MUNICIPALITY FROM 5
ADOPTING ADDITIONAL REQUIREMENTS FOR EDU CATION ON THE SAFE 6
CONSUMPTION OF CANNA BIS ON THE PREMISES OF A LICENSED ON –SITE 7
CONSUMPTION ESTABLISHM ENT. 8
(J) A PERSON MAY HAVE AN O WNERSHIP INTEREST IN OR CONTROL OF , 9
INCLUDING THE POWER TO MANAGE AND OPERAT E, TWO ON–SITE CONSUMPTION 10
ESTABLISHMENTS LICEN SED UNDER THIS SECTI ON. 11
36–408. 12
(A) (1) THE DIVISION ADMINISTRATION SHALL REGISTER AT LEAST ON E 13
INDEPENDENT TESTING LABORATORY TO TEST C ANNABIS AND CANNABIS PRODUCTS 14
THAT ARE TO BE SOLD IN THE STATE. 15
(2) THE DIVISION ADMINISTRATION SHALL HOLD MEDICAL A ND 16
ADULT–USE CANNABIS TESTING TO THE SAME STANDARD S. 17
(B) TO BE REGISTERED AS AN INDEPENDENT TE STING LABORATORY , A 18
LABORATORY MUST : 19
(1) MEET THE APPLICATION REQUIREMENTS ESTABLI SHED BY THE 20
DIVISION ADMINISTRATION ; 21
(2) PAY AN APPLICATION F EE DETERMINED BY THE DIVISION 22
ADMINISTRATION ; AND 23
(3) MEET THE STANDARDS A ND REQUIR EMENTS FOR 24
ACCREDITATION , INSPECTION, AND TESTING ESTABLIS HED BY THE DIVISION 25
ADMINISTRATION . 26
(C) (1) AN INDEPENDENT TESTIN G LABORATORY LICENSE IS VALID FOR 27
2 YEARS ON INITIAL LIC ENSURE. 28
(2) AN INDEPENDENT TESTIN G LABORATORY LICENSE IS VALID FOR 29
2 YEARS ON RENEWAL . 30
68 HOUSE BILL 556
(D) A REGISTERED INDEPENDE NT TESTING LABORATOR Y IS AUTHORIZED 1
TO TEST AND TRANSPOR T CANNABIS AND CANNA BIS PRODUCTS ON BEHA LF OF 2
CANNABIS LICENSEES . 3
(E) (1) A LABORATORY AGENT OR AN EMPLOYEE OF AN IN DEPENDENT 4
TESTING LABORATORY M AY NOT RECEIVE DIRECT OR IN DIRECT FINANCIAL 5
COMPENSATION , OTHER THAN REASONABL E CONTRACTUAL FEES T O CONDUCT 6
TESTING, FROM ANY ENTITY FOR WHICH IT IS CONDUCTI NG TESTING UNDER THI S 7
TITLE. 8
(2) AN INDIVIDUAL WHO POS SESSES AN INTEREST I N OR IS A 9
LABORATORY AGENT E MPLOYED BY AN INDEPE NDENT TESTING LABORA TORY, OR 10
AN IMMEDIATE FAMILY MEMBER OF THE INDIVI DUAL, MAY NOT POSSESS AN 11
INTEREST IN OR BE EM PLOYED BY A CANNABIS LICENSEE. 12
(F) CANNABIS AND CANNABIS PRODUCTS MAY NOT BE SOLD OR OTHERWISE 13
MARKETED UNDER THIS TITLE IF THE CANNABIS OR C ANNABIS PRODUCT HAS NOT 14
BEEN TESTED BY AN IN DEPENDENT TESTING LA BORATORY AND DETERMI NED TO 15
MEET THE DIVISION’S ADMINISTRATION ’S TESTING PROTOCOLS . 16
(G) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS THAT 17
ESTABLISH: 18
(1) THE STANDARDS AND REQUIR EMENTS TO BE MET BY AN 19
INDEPENDENT TESTING LABORATORY TO OBTAIN A REGISTRATION ; 20
(2) THE STANDARDS OF CAR E TO BE FOLLOWED BY AN INDEPENDENT 21
TESTING LABORATORY ; AND 22
(3) THE BASIS AND PROCES SES FOR DENIAL , REVOCATION , AND 23
SUSPENSION OF A REGISTRATION OF AN INDEPENDENT TESTI NG LABORATORY . 24
(H) THE DIVISION ADMINISTRATION MAY INSPECT AN INDEP ENDENT 25
TESTING LABORATORY R EGISTERED UNDER THIS SECTION TO ENSURE CO MPLIANCE 26
WITH THIS TITLE AND ANY REGULATIONS ADOP TED UNDER THIS TITLE . 27
(I) (1) ANY REGISTRATION TO O PERATE AN INDEPENDEN T TESTING 28
LABORATORY ISSUED BY THE NATALIE M. LAPRADE MEDICAL CANNABIS 29
COMMISSION ON OR BEFO RE JULY 1, 2023, SHALL BE VALID UNDER THIS TITLE AND 30
SHALL AUTHORIZE AN I NDEPENDENT TESTING L ABORATORY TO PERFORM TESTING 31
ON MEDICAL AND ADULT –USE CANNABIS AND CAN NABIS PRODUCTS . 32
HOUSE BILL 556 69
(2) THE DIVISION ADMINISTRATION SHALL CONVERT ALL 1
INDEPENDENT TESTING LABORATORY REGISTRAT IONS IN ACCORDANCE W ITH THIS 2
SUBSECTION. 3
36–409. 4
(A) THE FOLLOWING BUSINES SES SHALL REGISTER W ITH THE DIVISION 5
ADMINISTRATION IN ORDER TO PROVIDE SERVICES TO A CANNAB IS LICENSEE: 6
(1) A TRANSPORTER ; 7
(2) A SECURITY GUARD AGE NCY; 8
(3) A WASTE DISPOSAL COM PANY; AND 9
(4) ANY OTHER TYPE OF CA NNABIS BUSINESS THAT IS AUTHORIZED 10
BY THE DIVISION ADMINISTRATION TO PROVIDE PLANT OR PRODUCT–TOUCHING 11
SERVICES TO CANNABIS LICENSEES. 12
(B) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS THAT 13
ESTABLISH: 14
(1) THE STANDARDS AND RE QUIREMENTS TO BE MET BY AN ENTITY 15
TO OBTAIN A REGISTRA TION UNDER THIS SUBT ITLE; AND 16
(2) THE BASIS AND PROCES SES FOR APPROVAL , DENIAL, 17
REVOCATION , AND SUSPENSION OF TH E CANNABIS REGISTRAT ION. 18
(C) A REGISTRATION TO OPER ATE A TRANSPORTER , SECURITY GUARD 19
AGENCY, OR WASTE DISPOSAL CO MPANY ISSUED BY THE DIVISION NATALIE M. 20
LAPRADE MEDICAL CANNABIS COMMISSION ON OR BEFORE JULY 1, 2023, SHALL 21
BE VALID UNDER THIS TITLE AND AUTHORIZE A TRANSPORTER , SECURITY GUARD 22
AGENCY, OR WASTE DISPOSAL CO MPANY TO HANDLE MEDI CAL AND ADULT –USE 23
CANNABIS AND CANNABI S PRODUCTS. 24
36–410. 25
(A) BEGINNING JULY 1, 2023, A CANNABIS LICENSEE THAT IS OPERATING A 26
DISPENSARY SHALL : 27
(1) ENSURE THAT IT HAS A DEQUATE SUPPLY FOR Q UALIFYING 28
PATIENTS AND CAREGIV ERS; AND 29
70 HOUSE BILL 556
(2) SET ASIDE OPERAT ING HOURS OR DEDICATED SERVICE LINES TO 1
SERVE ONLY QUALIFYIN G PATIENTS AND CAREG IVERS; AND 2
(3) ENSURE THAT SHELF SPACE AT LEAST 25% OF CANNABIS AND 3
CANNABIS PRODUCTS IN THE DISPENSARY IS AVAILABLE FOR CAN NABIS AND 4
CANNABIS PRODUCTS ARE FROM SOCIAL EQUITY LICENSEES AND GROWERS AND 5
PROCESSORS THAT DO N OT SHARE COMMON OWNE RSHIP WITH THE DISPE NSARY. 6
(B) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, A LICENSED 7
DISPENSARY MAY NOT L OCATE WITHIN: 8
(1) 500 FEET OF: 9
(I) A PRE–EXISTING PRIMARY OR SECONDARY SCHOOL IN THE 10
STATE, OR A LICENSED CHILD CARE CENTER OR REGIS TERED FAMILY CHILD C ARE 11
HOME UNDER TITLE 9.5 OF THE EDUCATION ARTICLE; OR 12
(II) A PLAYGROUND , RECREATION CENTER , LIBRARY, OR PUBLIC 13
PARK; OR 14
(2) 1,000 FEET OF ANOTHER DISP ENSARY UNDER THIS TITLE . 15
(C) A POLITICAL SUBDIVISIO N MAY ADOPT AN ORDIN ANCE REDUCING THE 16
DISTANCE REQUIREMENT S UNDER SUBSECTION (B) OF THIS SECTION. 17
(D) THE DISTANCE REQUIREM ENTS UNDER SUBSECTIO N (B) OF THIS 18
SECTION DO NOT APPLY TO A DISPENSARY LICE NSE THAT WAS: 19
(1) CONVERTED UNDER § 36–401(B)(1)(II) OF THIS SUBTITLE; AND 20
(2) PROPERLY ZONED AND O PERATING BEFORE JULY 1, 2023. 21
SUBTITLE 5. AGENT, OWNER, AND LICENSE TRANSFER REQUIREMENTS . 22
36–501. 23
(A) EACH A CANNABIS AGENT SHALL BE REGISTERED WITH T HE DIVISION 24
ADMINISTRATION BEFORE THE AGENT MAY VOLUNTEER OR WORK FO R A CANNABIS 25
LICENSEE OR CANNABIS REGISTRANT. 26
(B) A CANNABIS AGENT REGIS TRATION IS VALID FOR 2 YEARS. 27
(C) TO BE ELIGIBLE TO REGISTER AS A CANNABIS AGENT WITH THE 28
DIVISION ADMINISTRATION , A CANNABIS AGENT AN INDIVIDUAL MUST: 29 HOUSE BILL 556 71
(1) BE AT LEAST 21 YEARS OLD; AND 1
(2) IF THE RECORDS ARE L EGALLY ACCESSIBLE , OBTAIN A STATE AND 2
NATIONAL CRIMINAL HI STORY RECORDS CHECK IN ACCORDANCE WITH § 36–505 OF 3
THIS SUBTITLE. 4
(D) THE DIVISION ADMINISTRATION MAY NOT REGISTER AS A CANNABIS 5
AGENT AN INDIVIDUAL WHO: 6
(1) DOES NOT MEET THE CR ITERIA ESTABLISHED U NDER 7
SUBSECTION (C) OF THIS SECTION; OR 8
(2) HAS BEEN CONVICTED O F OR PLEADED NOLO CO NTENDERE TO A 9
CRIME INVOLVING MORA L TURPITUDE, WHETHER OR NOT ANY APPE AL OR OTHER 10
PROCEEDING IS PENDIN G TO HAVE THE CONVIC TION OR PLEA SET ASI DE. 11
(E) THE DIVISION ADMINISTRATION MAY NOT DENY A CANNA BIS AGENT 12
REGISTRATION BASED O N ANY CANNABIS –RELATED OFFENSES OCC URRING BEFORE 13
JANUARY JULY 1, 2023. 14
(F) A CANNABIS LICENSEE SH ALL REQUIRE EACH REG ISTERED CANNABIS 15
AGENT TO COMPLETE AN ANNUAL RESPONSIBLE V ENDOR TRAINING PROGR AM 16
AUTHORIZED UNDER THI S TITLE. 17
(G) A REGISTRATION OF A CA NNABIS AGENT ISSUED BY THE NATALIE M. 18
LAPRADE MEDICAL CANNABIS COMMISSION O N OR BEFORE JULY 1, 2023, SHALL: 19
(1) BE VALID UNDER THIS TITLE; AND 20
(2) AUTHORIZE THE CANNAB IS AGENT TO BE EMPLO YED BY OR 21
VOLUNTEER WITH A LIC ENSED CANNABIS BUSIN ESS. 22
36–502. 23
(A) AN INDIVIDUAL A PERSON WISHING TO HOLD AN O WNERSHIP INTEREST 24
OF 5% OR GREATER IN , OR CONTROL OF , A CANNABIS LICENSEE SHALL SUBMIT TO 25
THE DIVISION ADMINISTRATION : 26
(1) AN APPLICATION THAT INCLUDES THE NAME , ADDRESS, AND DATE 27
OF BIRTH OF THE APPL ICANT; 28
72 HOUSE BILL 556
(2) A STATEMENT SIGNED BY THE APPLICANT ASS ERTING THAT THE 1
APPLICANT HAS NOT PR EVIOUSLY HAD A CANNA BIS LICENSE OR CANNA BIS 2
REGISTRATION SUSPEND ED OR REVOKED ; 3
(3) A STATE AND NATIONAL CR IMINAL HISTORY RECOR DS CHECK IN 4
ACCORDANCE WITH § 36–505 OF THIS SUBTITLE; 5
(4) ANY INFO RMATION REQUIRED BY THE DIVISION 6
ADMINISTRATION TO COMPLETE AN INVES TIGATION INTO THE BA CKGROUND OF 7
THE APPLICANT , INCLUDING FINANCIAL RECORDS AND OTHER IN FORMATION 8
RELATING TO THE BUSI NESS AFFAIRS OF THE APPLICANT; AND 9
(5) AN APPLICATION FEE I N AN AMOUNT TO BE DE TERMINED BY THE 10
DIVISION ADMINISTRATION IN ACCORDANCE WITH T HIS SUBTITLE. 11
(B) THE DIVISION ADMINISTRATION MAY DENY AN APPLICAT ION IF: 12
(1) THE APPLICANT : 13
(I) FAILS TO SUBMIT THE INFORMATION REQUIRED UNDER 14
SUBSECTION (A) OF THIS SECTION; OR 15
(II) HAS BEEN CONVICTED O F OR PLEADED NOLO CO NTENDERE 16
TO A CRIME INVOLVING MORAL TURPITUDE , WHETHER OR NOT ANY A PPEAL OR 17
OTHER PROCEEDING IS PENDING TO HAVE THE CONVICTION OR PLEA S ET ASIDE; OR 18
(2) THE DIVISION ADMINISTRATION FINDS A SUBSTANTIAL REASON 19
TO DENY THE REGISTRA TION. 20
36–503. 21
(A) A CANNABIS LICENSE GRA NTED UNDER THIS TITL E IS NOT 22
TRANSFERABLE EXCEPT AS PROVIDED IN THIS SECTION. 23
(B) TO TRANSFER OWNERSHIP OR CONTROL OF A LICE NSE ISSUED UNDER 24
THIS TITLE, A LICENSEE: 25
(1) SHALL SUBMIT TO THE DIVISION ADMINISTRATION : 26
(I) AN APPLICATION FEE I N AN AMOUNT TO BE DE TERMINED BY 27
THE DIVISION ADMINISTRATION IN ACCORDANCE WITH T HIS SUBTITLE; AND 28
(II) AN APPLICATION DEVEL OPED BY THE DIVISION 29
ADMINISTRATION ; AND 30 HOUSE BILL 556 73
(2) MUST MEET THE REQUIR EMENTS FOR TRANSFER OF OWNERSHIP 1
OR CONTROL ESTABLISH ED BY THE DIVISION ADMINISTRATION UNDER THIS TITLE . 2
(C) (1) A CANNABIS LICENSEE , INCLUDING A CANNABIS LICENSEE WHOSE 3
LICENSE WAS CONVERTE D IN ACCORDANCE WITH § 36–401 OF THIS TITLE, MAY NOT 4
TRANSFER OWNERSHIP O R CONTROL OF THE LIC ENSE FOR A PERIOD OF AT LEAST 5 5
YEARS FOLLOWING LICE NSURE. 6
(2) THE 5–YEAR PERIOD SPECIFIE D IN PARAGRAPH (1) OF THIS 7
SUBSECTION DOES NOT INCLUDE THE TIME PER IOD THAT A BUSINESS IS 8
CONSIDERED BY THE DIVISION ADMINISTRATION TO BE IN A PREAPPROV ED 9
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 OR RECEIVERSHIP IN 13
ACCORDANCE WITH A LE NDING AGREEMENT OF A CANNABIS LICENS EE, OR COURT 14
ORDER. 15
(4) THE LIMITATIONS UNDER THIS SUBSECTION DO NOT APPLY TO A 16
TRANSFER OF OWNERSHI P THAT IS THE SUBJEC T OF A LEGALLY BINDI NG 17
SETTLEMENT AGREEMENT RESULTING FROM LITIG ATION COMMENCED ON O R 18
BEFORE JANUARY 1, 2023. 19
36–504. 20
(A) (1) IN THIS SECTION, “OWNER” INCLUDES ANY TYPE OF OWNER OR 21
BENEFICIARY OF A BUSINESS ENTITY , INCLUDING A PRINCIPA L OFFICER, A 22
DIRECTOR, A PRINCIPAL EMPLOYEE , A PARTNER, AN INVESTOR, A STOCKHOLDER , 23
OR A BENEFICIAL OWNE R OF THE BUSINESS EN TITY AND, NOTWITHSTANDING ANY 24
OTHER PROVISION OF T HIS SUBTITLE, A PERSON HAVING ANY OWNERSHIP 25
INTEREST REGARDLESS OF THE PERCENTAGE OF OWNERSHIP INTEREST . 26
(2) “OWNER” DOES NOT INCLUDE A S TOCKHOLDER . 27
(B) THE PROVISIONS IN THI S SECTION ARE IN ADD ITION TO THE CONFLIC T 28
OF INTEREST PROVISIO NS IN TITLE 5 OF THE GENERAL PROVISIONS ARTICLE. 29
(C) EXCEPT AS PROVIDED IN SUBSECTION (C) (D) OF THIS SECTION , A 30
CONSTITUTIONAL OFFIC ER OR A SECRETARY OF A PRINCIPAL DEPARTME NT OF THE 31
EXECUTIVE BRANCH OF THE STATE GOVERNMENT MAY NOT: 32
74 HOUSE BILL 556
(1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT 1
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR 2
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT 3
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE. 4
(C) (D) A SUBJECT TO THE PROVISIONS OF TITLE 5 OF THE GENERAL 5
PROVISIONS ARTICLE, A CONSTITUTIONAL OFFIC ER OR A SECRETARY OF A 6
PRINCIPAL DEPARTMENT OF THE EXECUTIVE BRANCH OF THE STATE GOVERNMENT 7
MAY REMAIN AN OWNER OR AN EMPLOYEE OF A BUSINESS ENTITY THAT HOLDS A 8
LICENSE UNDER THIS TITLE IF THE CONS TITUTIONAL OFFICER O R SECRETARY WAS 9
AN OWNER OR EMPLOYEE OF THE BUSINESS ENTI TY BEFORE THE CONSTI TUTIONAL 10
OFFICER’S ELECTION OR APPOIN TMENT OR THE SECRETA RY’S APPOINTMENT . 11
(D) (E) A MEMBER OF THE GENERAL ASSEMBLY MAY NOT : 12
(1) BE AN OWNER OR AN EMPLO YEE OF A BUSINESS EN TITY THAT 13
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR 14
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT 15
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE. 16
(E) (F) A FORMER MEMBER OF THE GENERAL ASSEMBLY, FOR THE 17
1–YEAR PERIOD IMMEDIAT ELY AFTER THE MEMBER LEAVES OFFICE, MAY NOT: 18
(1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT 19
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR 20
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT 21
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE. 22
(F) (G) AN EMPLOYEE OF THE DIVISION ADMINISTRATION MAY NOT: 23
(1) HAVE A DIRECT OR IND IRECT FINANCIAL , OWNERSHIP, OR 24
MANAGEMENT INTEREST , INCLUDING OWNERSHIP OF ANY STOCKS , BONDS, OR 25
OTHER SIMILAR FINANCIAL IN STRUMENTS , IN ANY CANNABIS LICE NSEE; 26
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A PER SON WHO HOLDS A 27
LICENSE OR REGISTRAT ION UNDER THIS TITLE ; 28
(3) BE AN ELECTED OFFICI AL OF STATE OR LOCAL GOVERN MENT; 29
(4) RECEIVE OR SHARE IN , DIRECTLY OR INDIRECTLY , THE RECEIPTS 30
OR PROCEEDS OF A CAN NABIS LICENSEE; OR 31 HOUSE BILL 556 75
(5) HAVE A BENEFICIAL IN TEREST IN A CONTRACT FOR THE 1
MANUFACTURE OR SALE OF CANNABIS OR THE P ROVISION OF INDEPEND ENT 2
CONSULTING SERVICES IN CONNECTION WITH A CANNABIS LICENSE . 3
36–505. 4
(A) IN THIS SECTION , “CENTRAL REPOSITORY” MEANS THE CRIMINAL 5
JUSTICE INFORMATION SYSTEM CENTRAL REPOSITORY IN THE DEPARTMENT OF 6
PUBLIC SAFETY AND CORRECTIONAL SERVICES. 7
(B) AS PART OF AN APPLICA TION TO THE CENTRAL REPOSITORY FOR A 8
STATE AND NATIONAL CRIMINAL HIS TORY RECORDS CHECK , AN APPLICANT SHALL 9
SUBMIT TO THE CENTRAL REPOSITORY: 10
(1) TWO COMPLETE SETS OF LEGIBLE FINGERPRINTS TAKEN ON 11
FORMS APPROVED BY TH E DIRECTOR OF THE CENTRAL REPOSITORY AND THE 12
DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION; 13
(2) THE FEE AUTHORIZED U NDER § 10–221(B)(7) OF THE CRIMINAL 14
PROCEDURE ARTICLE FOR ACCESS TO STATE CRIMINAL HISTOR Y RECORDS; AND 15
(3) THE PROCESSING FEE R EQUIRED BY THE FEDERAL BUREAU OF 16
INVESTIGATION FOR A N ATIONAL CRIMINAL HIS TORY RECORDS CHECK. 17
(C) IN ACCORDANCE WITH §§ 10–201 THROUGH 10–228 OF THE CRIMINAL 18
PROCEDURE ARTICLE, THE CENTRAL REPOSITORY SHALL FORW ARD TO THE 19
DIVISION ADMINISTRATION AND TO THE APPLICANT THE APPLICANT ’S CRIMINAL 20
HISTORY RECORD INFOR MATION. 21
(D) IF AN APPLICANT HAS MADE TWO OR M ORE UNSUCCESSFUL ATT EMPTS 22
AT SECURING LEGIBLE FINGERPRINTS , THE DIVISION ADMINISTRATION MAY 23
ACCEPT AN ALTERNATE METHOD OF A CRIMINAL HISTORY RECORDS CHEC K AS 24
PERMITTED BY THE DIRECTOR OF THE CENTRAL REPOSITORY AND THE DIRECTOR 25
OF THE FEDERAL BUREAU OF INVESTIGATION . 26
(E) INFORMATION OBTAINED FROM THE CENTRAL REPOSITORY UNDER 27
THIS SECTION SHALL B E: 28
(1) CONFIDENTIAL AND MAY NOT BE REDISSEMINATE D; AND 29
(2) USED ONLY FOR THE PU RPOSE OF REGISTRATIO N UNDER THIS 30
TITLE. 31
76 HOUSE BILL 556
(F) THE SUBJECT OF A CRIMINAL HISTOR Y RECORDS CHECK UNDE R THIS 1
SECTION MAY CONTEST THE CRIMINAL HISTORY RECORD INFORMATION 2
DISSEMINATED BY THE CENTRAL REPOSITORY, AS PROVIDED IN § 10–223 OF THE 3
CRIMINAL PROCEDURE ARTICLE. 4
SUBTITLE 6. MEDICAL CANNABIS COMPASSIONATE USE FUND AND PROGRAM. 5
36–601. 6
(A) IN THIS SECTION , “FUND” MEANS THE MEDICAL CANNABIS 7
COMPASSIONATE USE FUND. 8
(B) THERE IS A MEDICAL CANNABIS COMPASSIONATE USE FUND. 9
(B) (C) (1) THE DIVISION ADMINISTRATION SHALL: 10
(I) ADMINISTER THE COMPASSIONATE USE FUND; AND 11
(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 12
ESTABLISH FEES IN AN AMOUNT NECESSARY TO PROVIDE REVENUES FOR THE 13
PURPOSES OF THE COMPASSIONATE USE FUND. 14
(2) THE DIVISION ADMINISTRATION MAY NOT IMPOSE THE F EES 15
ESTABLISHED UNDER PA RAGRAPH (1)(II) OF THIS SUBSECTION O N A LICENSED 16
MEDICAL CANNABIS GRO WER, PROCESSOR, OR DISPENSARY DURING THE 2–YEAR 17
PERIOD IMMEDIATELY F OLLOWING THE ISSUANC E OF A LICENSE BEFORE THE 18
GROWER, PROCESSOR, OR DISPENSARY IS AN OPERATIONAL CANNABIS LICENSEE 19
UNDER THIS TITLE. 20
(C) (D) THE PURPOSE OF THE COMPASSIONATE USE FUND IS TO 21
PROVIDE ACCESS TO CA NNABIS FOR INDIVIDUA LS ENROLLED IN THE MARYLAND 22
MEDICAL ASSISTANCE PROGRAM OR IN THE VETERANS AFFAIRS MARYLAND 23
HEALTH CARE SYSTEM, INCLUDING ACCESS TO , AT A REDUCED COST : 24
(1) AN ASSESSMENT OF THE PATIENT’S MEDICAL HISTORY AN D 25
CURRENT MEDICAL COND ITION; AND 26
(2) MEDICAL CANNABIS FRO M A LICENSED DISPENS ARY. 27
(D) (E) (1) THE COMPASSIONATE USE FUND IS A SPECIAL , 28
NONLAPSING FUND THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND 29
PROCUREMENT ARTICLE. 30
HOUSE BILL 556 77
(2) THE STATE TREASURER SHALL HOLD THE COMPASSIONATE USE 1
FUND SEPARATELY , AND THE COMPTROLLER SHALL ACC OUNT FOR THE 2
COMPASSIONATE USE FUND. 3
(3) THE COMPASSIONATE USE FUND SHALL BE INVESTE D AND 4
REINVESTED IN THE SA ME MANNER AS OTHER STATE FUNDS, AND ANY INVESTMENT 5
EARNINGS SHALL BE RE TAINED TO THE CREDIT OF THE COMPASSIONATE USE 6
FUND. 7
(F) THE FUND CONSISTS OF : 8
(1) FEES ESTABLISHED UND ER SUBSECTION (C)(1)(II) OF THIS 9
SECTION; 10
(2) FINES ASSESSED BY TH E DIVISION ADMINISTRATION UNDER THIS 11
TITLE; 12
(3) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 13
(4) INTEREST EARNINGS ; AND 14
(5) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 15
THE BENEFIT OF THE FUND. 16
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 17
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 18
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 19
THE FUND. 20
(4) (H) THE COMPASSIONATE USE FUND SHALL BE SUBJECT TO AN 21
AUDIT BY THE OFFICE OF LEGISLATIVE AUDITS AS PROVID ED FOR IN § 2–1220 OF 22
THE STATE GOVERNMENT ARTICLE. 23
(5) (I) THE COMPTROLLER SHALL PAY OUT MONEY FROM THE 24
COMPASSIONATE USE FUND AS DIRECTED BY T HE DIVISION ADMINISTRATION . 25
(E) (J) NO PART OF THE COMPASSIONATE USE FUND MAY REVERT OR BE 26
CREDITED TO: 27
(1) THE GENERAL FUND OF THE STATE; OR 28
(2) ANY OTHER SPECIAL FU ND OF THE STATE. 29
78 HOUSE BILL 556
(F) (K) EXPENDITURES FROM THE COMPASSIONATE USE FUND MAY BE 1
MADE ONLY IN ACCORDA NCE WITH THE STATE BUDGET . 2
(G) (L) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS TO 3
CARRY OUT THIS SECTI ON. 4
SUBTITLE 7. CANNABIS RESEARCH AND DEVELOPMENT . 5
36–701. 6
(A) (1) AN INSTITUTION OF HIG HER EDUCATION , A RELATED MEDICAL 7
FACILITY, OR AN AFFILIATED BIO MEDICAL RESEARCH FIR M MAY REGISTER WITH 8
THE DIVISION ADMINISTRATION TO PURCHASE CANNABIS FOR THE PURPOSE OF 9
CONDUCTING A BONA FIDE RESEARCH PROJEC T RELATING TO THE US ES, 10
PROPERTIES, OR COMPOSITION OF CA NNABIS. 11
(2) A REGISTRATION FILED U NDER PARAGRAPH (1) OF THIS 12
SUBSECTION SHALL INC LUDE: 13
(I) THE NAME OF THE PRIMARY RESEA RCHER; 14
(II) THE EXPECTED DURATIO N OF THE RESEARCH PR OJECT; 15
AND 16
(III) THE PRIMARY OBJECTIV ES OF THE RESEARCH P ROJECT. 17
(3) A REGISTRATION FILED U NDER PARAGRAPH (1) OF THIS 18
SUBSECTION SHALL REM AIN VALID UNTIL THER E IS A CHANGE IN THE RESEARCH 19
PROJECT OR A WITHDRA WAL OF THE REGISTRAT ION. 20
(B) AN ACADEMIC RESEARCH REPRESENTATIVE MAY P URCHASE CANNABIS 21
FROM A LICENSED DISP ENSARY OR A SUPPLIER OF CAN NABIS THAT IS LICENS ED BY 22
ANY FEDERAL AGENCY T O SUPPLY CANNABIS TO RESEARCHERS . 23
(C) AN ACADEMIC RESEARCH REPRESENTATIVE MAY N OT BE PENALIZED OR 24
ARRESTED UNDER STATE LAW FOR ACQUIRI NG, POSSESSING, OR DISPENSING 25
CANNABIS, PRODUCTS CONTAINING CANNABIS, RELATED SUPPLIES , OR 26
EDUCATIONAL MATERIAL S FOR USE IN A BONA FIDE RESEARCH PROJEC T RELATING 27
TO THE USES, PROPERTIES, OR COMPOSITION OF CA NNABIS. 28
(D) THE DIVISION ADMINISTRATION MAY ADOPT REGULATION S TO 29
IMPLEMENT THIS SECTI ON. 30
36–702. 31 HOUSE BILL 556 79
(A) THE DIVISION ADMINISTRATION MAY REGISTER AN ENTI TY TO GROW, 1
PROCESS, TEST, AND TRANSFER CANNABI S FOR THE PURPOSES O F RESEARCH AND 2
DEVELOPMENT AS PROVI DED IN SUBSECTION (B) OF THIS SECTION. 3
(B) A REGISTRATION ISSUED UNDER SUBSECTION (A) OF THIS SECTION 4
AUTHORIZES THE REGIS TRANT ONLY TO: 5
(1) TEST CHEMICAL POTENC Y AND COMPOSITION LE VELS; 6
(2) CONDUCT CLINICAL INV ESTIGATIONS OF CANNA BIS–DERIVED 7
MEDICINAL PRODUCTS ; 8
(3) CONDUCT RESEARCH ON THE EFFICACY AND SAF ETY OF 9
ADMINISTERING CANNAB IS AS PART OF MEDICA L TREATMENT ; 10
(4) CONDUCT GENOMIC , HORTICULTURAL , OR AGRICULTURAL 11
RESEARCH; AND 12
(5) CONDUCT RESEARCH ON CANNABIS–AFFILIATED PRODUCTS OR 13
SYSTEMS. 14
(C) TO OBTAIN A RESEARCH AND DEVELOPMENT REGI STRATION, AN 15
APPLICANT SHALL SUBM IT TO THE DIVISION ADMINISTRATION : 16
(1) AN APPLICATION FEE IN AN AM OUNT TO BE DETERMINE D BY THE 17
DIVISION ADMINISTRATION ; AND 18
(2) AN APPLICATION DEVEL OPED BY THE DIVISION 19
ADMINISTRATION . 20
(D) AN APPLICANT FOR A RE SEARCH AND DEVELOPME NT REGISTRATION 21
MUST MEET THE REGIST RATION STANDARDS AND REQUIREMENTS ESTABLI SHED BY 22
THE DIVISION ADMINISTRATION . 23
(E) (1) A RESEARCH AND DEVELOP MENT REGISTRATION IS VALID FOR AN 24
INITIAL TERM OF 2 YEARS. 25
(2) A RESEARCH AND DEVELOP MENT REGISTRATION IS VALID FOR 2 26
YEARS ON RENEWAL . 27
(F) A RESEARCH AND DEVELOP MENT REGISTRANT MAY TRANSFER, BY SALE 28
OR DONATION , CANNABIS GROWN WITHI N ITS OPERATION ONLY TO OTHER 29
RESEARCH AND DEVELOP MENT REGISTRANTS . 30 80 HOUSE BILL 556
(G) A RESEARCH AND DEVELOPMENT R EGISTRANT MAY CONTRA CT TO 1
PERFORM RESEARCH IN CONJUNCTION WITH A P UBLIC HIGHER EDUCATI ON 2
RESEARCH INSTITUTION OR ANOTHER RESEARCH AND DEVELOPMENT REGI STRANT. 3
SUBTITLE 8. REPORTS. 4
36–801. 5
(A) ON OR BEFORE JUNE 30 EACH YEAR, EACH ENTI TY LICENSED OR 6
REGISTERED UNDER THI S TITLE CANNABIS LICENSEE AN D CANNABIS REGISTRAN T 7
SHALL REPORT TO THE DIVISION ON: 8
(A) ON OR BEFORE AUGUST 1 EACH YEAR, EACH CANNABIS LICENS EE AND 9
CANNABIS REGISTRANT SHALL REPORT TO THE ADMINISTRATION INFORM ATION 10
DETERMINED BY THE ADMINISTRATION TO BE NECESSARY TO CONTINU E TO ASSESS 11
THE NEED FOR REMEDIA L MEASURES IN THE CA NNABIS INDUSTRY AND MARKET, 12
INCLUDING: 13
(1) THE NUMBER OF MINORI TY AND WOMEN OWNERS OF THE 14
CANNABIS LICENSEE OR CANNABIS REGISTRANT ; 15
(2) THE OWNERSHIP INTEREST O F ANY MINORITY AND W OMEN 16
OWNERS OF THE CANNAB IS LICENSEE OR CANNA BIS REGISTRANT ; AND 17
(3) THE NUMBER OF MINORI TY AND WOMEN EMPLOYE ES OF THE 18
CANNABIS LICENSEE OR CANNABIS REGISTRANT ; 19
(4) A LIST OF THE CANNAB IS LICENSEE’S OR CANNABIS REGISTRANT ’S 20
EXPENDITURES FOR THE PRIOR STATE FISCAL YEAR ; AND 21
(5) FOR EACH EXPENDITURE : 22
(I) A DESCRIPTION OF THE WORK PERFORMED ; 23
(II) THE DOLLAR VALUE OF THE EXPENDITURE ; 24
(III) WHETHER THE WORK WAS PERFORMED BY THE CAN NABIS 25
LICENSEE OR CANNABIS REGISTRANT OR A CONT RACTOR OR SUBCONTRAC TOR; AND 26
(IV) IF THE WORK WAS PERF ORMED BY A CONTRACTO R OR 27
SUBCONTRACTOR , THE NAME OF THE ENTI TY THAT PERFORMED TH E WORK. 28
HOUSE BILL 556 81
(B) ALL DATA PROVIDED BY A CANNABIS LICENSEE OR CANNABIS 1
REGISTRANT UNDER SUBSECTION (A)(4) AND (5) OF THIS SECTION: 2
(1) SHALL CONSTITUTE CON FIDENTIAL COMMERCIAL AND FINANCIAL 3
INFORMATION AND BE T REATED AS CONFIDENTI AL BY THE ADMINISTRATION AND 4
THE STATE; AND 5
(2) MAY BE USED ONLY FOR THE PURPOSES AUTHORI ZED UNDER TH IS 6
SECTION AND MAY ONLY BE DISCLOSED TO THE PUBLIC IN AN ANONYMI ZED OR 7
AGGREGATED FORMAT . 8
(C) ON OR BEFORE AUGUST 15 EACH YEAR, THE ADMINISTRATION SHALL 9
PROVIDE THE DATA COL LECTED UNDER SUBSECT ION (A) OF THIS SECTION TO T HE 10
CERTIFICATION AGENCY DESIGNATE D BY THE BOARD OF PUBLIC WORKS UNDER § 11
14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 12
(B) (D) ON OR BEFORE JANUARY 1 EACH YEAR , THE DIVISION 13
ADMINISTRATION SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE 14
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE INFORMATION 15
REPORTED UNDER SUBSE CTION (A) (A)(1) THROUGH (3) OF THIS SECTION. 16
36–802. 17
ON OR BEFORE JANUARY 1 EACH ODD–NUMBERED YEAR, THE DIVISION 18
ADMINISTRATION SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE 19
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON: 20
(1) THE AMOUNT OF CANNAB IS CULTIVATED , PROCESSED, AND 21
DISPENSED BY STANDAR D AND MICRO LICENSEE S; AND 22
(2) WHETHER THE SUPPLY O F CANNABIS IS ADEQUATE TO MEET THE 23
DEMAND FOR CANNABIS AND CANNABIS PRODUCT S. 24
36–803. 25
THE DIVISION ADMINISTRATION SHALL PUBLISH THE FO LLOWING DATA , 26
ORGANIZED BY MONTH , ON A ROLLING BASIS A ND ON A PUBLICLY ACC ESSIBLE PART 27
OF THE COMMISSION’S ADMINISTRATION ’S WEBSITE: 28
(1) THE NUMBER OF PATIEN TS, CAREGIVERS, AND PROVIDERS 29
CERTIFIED UNDER THIS TITLE; 30
(2) THE WHOLESALE AND RE TAIL SALES OF MEDICA L AND ADULT–USE 31
CANNABIS, MEASURED BY REVENUE AND VOLUME ; AND 32 82 HOUSE BILL 556
(3) THE MEDIAN CONSUMER PRICE FOR CANNABIS A ND CANNABIS 1
PRODUCTS. 2
SUBTITLE 9. ADVERTISING. 3
36–901. 4
(A) IN THIS SUBTITLE , “ADVERTISEMENT ” MEANS THE PUBLICATIO N, 5
DISSEMINATION , OR CIRCULATION OF AN Y AUDITORY, VISUAL, DIGITAL, ORAL, OR 6
WRITTEN MATTER WHICH IS DIRECTLY OR INDIR ECTLY CALCULATED TO INDUCE THE 7
SALE OF CANNABIS OR ANY CANNABIS–RELATED PRODUCT OR S ERVICE. 8
(B) “ADVERTISEMENT ” DOES NOT INCLUDE PAC KAGING OR LABELING . 9
36–902. 10
(A) ADVERTISEMENTS AN ADVERTISEMENT FOR MEDICAL CANNABIS AND 11
MEDICAL CANNABIS PRODUCTS OR MEDICAL CANNABIS –RELATED SERVICES THA T 12
MAKE MAKES THERAPEUTIC OR MEDIC AL CLAIMS SHALL : 13
(1) BE SUPPORTED BY SUBSTANTIAL CLINICAL EVIDENCE OR 14
SUBSTANTIAL CLINICAL DATA COMPETENT AND RELIAB LE SCIENTIFIC EVIDEN CE; 15
AND 16
(2) INCLUDE INFORMATION ON THE M OST SIGNIFICANT SERIOUS AND 17
MOST COMMON SIDE EFFECTS OR RISK S ASSOCIATED WITH TH E USE OF CANNABIS . 18
(B) ADVERTISEMENTS AN ADVERTISEMENT FOR MEDICAL CANNABIS OR 19
MEDICAL CANNABIS PRO DUCTS SHALL INCLUDE A STATEMENT THAT THE PRODUCT 20
IS FOR USE ONLY BY A QUALIFYING PATIENT . 21
36–902. 36–903. 22
(A) (1) THIS SUBSECTION DOES NOT APPLY TO AN ADVE RTISEMENT 23
PLACED ON PROPERTY O WNED OR LEASED BY A DISPENSARY, GROWER, OR 24
PROCESSOR. 25
(2) AN ADVERTISEMENT FOR A CANNABIS LICENSEE , CANNABIS 26
PRODUCT, OR CANNABIS–RELATED SERVICE MAY NOT: 27
(1) MAKE A STATEMENT THA T IS FALSE OR MISLEA DING IN A 28
MATERIAL WAY OR IS O THERWISE A VIOLATION OF TITLE 13, SUBTITLE 3 OF THE 29
COMMERCIAL LAW ARTICLE; 30 HOUSE BILL 556 83
(I) VIOLATE TITLE 13, SUBTITLE 3 OF THE COMMERCIAL LAW 1
ARTICLE; 2
(II) DIRECTLY OR INDIRECT LY TARGET INDIVIDUAL S UNDER 3
THE AGE OF 21 YEARS; 4
(2) (III) CONTAIN A DESIGN , AN ILLUSTRATION , A PICTURE, OR A 5
REPRESENTATION THAT : 6
(I) 1. TARGETS OR IS ATTRAC TIVE TO MINORS , INCLUDING 7
A CARTOON CHARACTER , A MASCOT, OR ANY OTHER DEPICTI ON THAT IS COMMONLY 8
USED TO MARKET PRODU CTS TO MINORS; 9
(II) 2. DISPLAYS THE USE OF CANNABIS, INCLUDING THE 10
CONSUMPTION , SMOKING, OR VAPING OF CANNABI S; 11
(III) 3. ENCOURAGES OR PROMOT ES CANNABIS FOR USE AS 12
AN INTOXICANT; OR 13
(I) 4. IS OBSCENE; 14
(3) (IV) ENGAGE IN ADVERTISIN G BY MEANS OF TELEVI SION, RADIO, 15
INTERNET, MOBILE APPLICATION , SOCIAL MEDIA , OR OTHER ELECTRONIC 16
COMMUNICATION , OR PRINT PUBLICATION , UNLESS AT LEAST 85% OF THE 17
AUDIENCE IS REASONAB LY EXPECTED TO BE AT LEAST 21 YEARS OLD AS 18
DETERMINED BY RELIAB LE AND CURRENT AUDIE NCE COMPOSITION DATA ; OR 19
(4) (V) ENGAGE IN ADVERTISIN G BY MEANS OF PLACIN G AN 20
ADVERTISEMENT ON THE SIDE OF A BUILDING O R ANOTHER PUBLICLY V ISIBLE 21
LOCATION OF ANY FORM , INCLUDING A SIGN , A POSTER, A PLACARD, A DEVICE, A 22
GRAPHIC DISPLAY , AN OUTDOOR BILLBOARD, OR A FREESTANDING SIGNBOARD. 23
(B) (1) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 24
EACH CANNABIS–RELATED WEBSITE OWNED, MANAGED, OR OPERATED BY A 25
CANNABIS LICENSEE SHALL EMPLOY A NEUTR AL AGE–SCREENING MECHANISM 26
THAT VERIFIES THAT T HE USER IS AT LEAST 21 YEARS OLD, INCLUDING BY USING A N 27
AGE–GATE, AGE–SCREEN, OR AGE VERIFICATION MECHANISM BEFORE THE USER 28
MAY ACCESS OR VIEW A NY CONTENT AND BEFOR E THE WEBSITE MAY CO LLECT THE 29
USER’S ADDRESS, E–MAIL ADDRESS, PHONE NUMBER , OR CONTACT INFORMATI ON TO 30
DISSEMINATE ADVERTIS EMENTS. 31
84 HOUSE BILL 556
(II) IF A WEBSITE IS APPRO PRIATE FOR A QUALIFY ING PATIENT 1
WHO IS UNDER THE AGE OF 21 YEARS, THE WEBSITE SHALL PR OVIDE AN 2
ALTERNATIVE SCREENIN G MECHANISM FOR THE QUALIFYING PATIENT . 3
(2) AN ADVERTISEMENT PLAC ED ON SOCIAL MEDIA O R A MOBILE 4
APPLICATION SHALL IN CLUDE A NOTIFICATION THAT AN INDIVIDUAL M UST BE AT 5
LEAST 21 YEARS OLD TO VIEW TH E CONTENT. 6
(3) THE PROVISIONS OF THI S SUBTITLE APPLICABL E TO CANNABIS 7
LICENSEES MAY NOT BE AVOIDED BY HIRING OR CONTRACTING WITH A 8
THIRD–PARTY, OR OUTSO URCING ADVERTISEMENT S THAT DO NOT COMPLY WITH 9
THIS SUBTITLE. 10
(4) A CANNABIS LICENSEE MA Y NOT ALLOW THE USE OF THE 11
LICENSEE’S TRADEMARKS , BRANDS, NAMES, LOCATIONS, OR OTHER 12
DISTINGUISHING CHARA CTERISTICS FOR THIRD –PARTY USE FOR ADVERT ISEMENTS 13
THAT DO NOT COMPLY WITH THIS SUB TITLE. 14
(C) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS TO 15
ESTABLISH: 16
(1) PROCEDURES FOR THE E NFORCEMENT OF THIS S ECTION; AND 17
(2) A PROCESS FOR AN IND IVIDUAL TO VOLUNTARI LY SUBMIT AN 18
ADVERTISEMENT TO THE DIVISION FOR AN ADVISORY OPINION ON WHETHER 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 ADMINISTRATION . 27
(B) THE DIVISION ADMINISTRATION SHALL APPROVE THE AP PLICATION IF 28
THE PROPOSED TRAININ G PROGRAM MEETS THE MINIMUM EDUCATIONAL 29
STANDARDS ESTABLISHE D UNDER SUBSECTION (C) OF THIS SECTION. 30
(C) AT A MINIMUM, A TRAINING PROGRAM M UST: 31
HOUSE BILL 556 85
(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 EFFECTIVENESS EV ALUATIONS; AND 5
(3) PROVIDE A CORE CURRI CULUM OF RELEVANT STATUTORY 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
ADMINISTRATION , MAINTENANCE OF RECOR DS, PRIVACY ISSUES, AND UNLAWFUL 10
ACTS; 11
(II) ADMINISTRATIVE AND C RIMINAL LIABILITY AN D LICENSE 12
AND COURT SANCTIONS ; 13
(III) STATUTORY AND REGULA TORY REQUIREMENTS FO R 14
EMPLOYEES AND OWNERS ; 15
(IV) STATUTORY AND REGULA TORY REQUIREMENTS RE LATED 16
TO CANNABIS SALE , TRANSFER, AND DELIVERY ; 17
(V) ACCEPTABLE FORMS OF IDENTI FICATION, INCLUDING 18
PATIENT AND CAREGIVE R IDENTIFICATION CAR DS; 19
(VI) STATE AND LOCAL LICEN SING AND ENFORCEMENT ; AND 20
(VII) INFORMATION ON SERVI NG SIZE, THC AND CANNABINOID 21
POTENCY, AND IMPAIRMENT . 22
36–1002. 23
THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS ESTABLISHING 24
THE RESPONSIBLE VEND OR TRAINING PROGRAM AND THE MINIMUM STAN DARDS 25
FOR THE PROGRAM . 26
36–1003. 27
A PROVIDER OF AN APPRO VED TRAINING PROGRAM SHALL: 28
(1) MAINTAIN ITS TRAININ G RECORDS AT ITS PRI NCIPAL PLACE OF 29
BUSINESS FOR AT LEAS T 4 YEARS; AND 30 86 HOUSE BILL 556
(2) MAKE THE RECORDS AVA ILABLE FOR INSPECTIO N BY THE 1
DIVISION ADMINISTRATION . 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 VERIFIE S 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 CAREGIV ER IS: 11
(I) REGISTERED WITH THE DIVISION ADMINISTRATION ; AND 12
(II) AT LEAST 18 YEARS OLD. 13
(B) (1) (I) A EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 14
PARAGRAPH , A LICENSEE THAT SELLS , TRANSFERS, OR DELIVERS CANNABIS OR 15
CANNABIS PRODUCTS IN VIOL ATION OF SUBSECTION (A) OF THIS SECTION IS 16
SUBJECT TO A CIVIL P ENALTY OF: 17
(I) 1. $500 FOR A FIRST VIOLATIO N; 18
(II) 2. $1,000 FOR A SECOND VIOLATI ON OCCURRING 19
WITHIN 24 MONTHS AFTER THE FIR ST VIOLATION; AND 20
(III) 3. $5,000 FOR EACH SUBSEQUENT VIOLATION 21
OCCURRING WITHIN 24 MONTHS AFTER THE IMM EDIATELY PRECEDING V IOLATION. 22
(II) A VIOLATION OF SUBSECT ION (A) OF THIS SECTION THAT 23
OCCURS MORE THAN 24 MONTHS AFTER THE IMM EDIATELY PRECEDING V IOLATION 24
SHALL BE TREATED AS A FIRST VIOLATION. 25
(2) THE DIVISION ADMINISTRATION MAY DENY A CANNABIS LICENSE 26
TO AN APPLICANT , REPRIMAND A CANNABIS LICENSEE, OR SUSPEND OR REVOKE A 27
CANNABIS LICENSE IF THE APPLICANT OR LIC ENSEE VIOLATES SUBSE CTION (A) OF 28
THIS SECTION TWO OR MORE TIMES IN A 24–MONTH PERIOD . 29
HOUSE BILL 556 87
(3) IN A HEARING FOR AN A LLEGED VIOLATION OF THIS SECTION, IT 1
IS A DEFENSE THAT AN AGENT OF THE DEFENDA NT EXAMINED THE CONS UMER’S, 2
PATIENT’S, OR CAREGIVER ’S DRIVER’S LICENSE OR OTHER V ALID IDENTIFICATION 3
ISSUED BY A GOVERNME NTAL UNIT TH AT POSITIVELY IDENTI FIED THE CONSUMER , 4
PATIENT, OR CAREGIVER AS MEET ING THE MINIMUM AGE SPECIFIED IN SUBSECT ION 5
(A) OF THIS SECTION. 6
(C) (1) A CANNABIS LICENSEE MA Y NOT: 7
(I) SELL, TRANSFER, OR DELIVER CANNABIS TO AN INDIVIDUAL 8
WHO IS VISIBLY INTOX ICATED; OR 9
(II) OFFER CANNABIS OR CA NNABIS PRODUCTS AS A PRIZE, 10
PREMIUM, OR CONSIDERATION FOR A LOTTERY, CONTEST, GAME OF CHANCE , GAME 11
OF SKILL, OR COMPETITION OF AN Y KIND; OR 12
(III) CONDUCT DIRECT –TO–CONSUMER INTERNET SALES OF 13
ADULT–USE CANNABIS ON OR BEFORE JULY 1, 2025. 14
(2) A CANNABIS LICENSEE TH AT VIOLATES PARAGRAP H (1) OF THIS 15
SUBSECTION IS SUBJEC T TO A FINE NOT EXCE EDING $1,000, SUSPENSION OR 16
REVOCATION OF A LICE NSE, OR BOTH. 17
(D) (1) A DISPENSARY MAY NOT : 18
(I) PACKAGE OR REPACKAGE CANNABIS OR CANNABIS 19
PRODUCTS; 20
(II) TRANSFORM CANNABIS O R CANNABIS PRODUCTS INTO 21
ANOTHER PRODUCT OR A N EXTRACT; OR 22
(III) WRAP, ROLL, OR OTHERWISE ENCASE CANNABIS FOR THE 23
PURPOSE OF SMOKING T HE CANNABIS. 24
(2) A DISPENSARY THAT VIOL ATES PARAGRAPH (1) OF THIS 25
SUBSECTION IS SUBJEC T TO A FINE NOT EXCE EDING $1,000, SUSPENSION OR 26
REVOCATION OF A LICE NSE, OR BOTH. 27
36–1102. 28
(A) THIS TITLE MAY NOT BE CONSTRUED TO AUTHORI ZE AN INDIVIDUAL TO : 29
(1) OPERATE, NAVIGATE, OR BE IN ACTUAL PHYS ICAL CONTROL OF A 30
MOTOR VEHICLE , AIRCRAFT, OR BOAT WHILE UNDER THE INFLUENCE OF CAN NABIS; 31 88 HOUSE BILL 556
(2) USE CANNABIS IN A PU BLIC PLACE; 1
(3) USE CANNABIS IN A MO TOR VEHICLE; 2
(4) EXCEPT AS PROVIDED I N SUBSECTION (B) OF THIS SECTION , 3
SMOKE CANNABIS ON A PRIVATE PROPERTY THA T: 4
(I) 1. IS RENTED FROM A LAN DLORD; AND 5
2. IS SUBJECT TO A POLI CY THAT PROHIBITS TH E 6
SMOKING OF CANNABIS ON THE PROPERTY ; OR 7
(II) IS SUBJECT TO A POLI CY THAT PROHIBITS TH E SMOKING OF 8
CANNABIS ON THE PROP ERTY OF AN ATTACHED DWELLING ADOPTED BY ONE OF THE 9
FOLLOWING ENTITIES : 10
1. THE BOARD OF DIRECTO RS OF THE COUNCIL OF UNIT 11
OWNERS OF A CONDOMIN IUM REGIME; OR 12
2. THE GOVERNING BODY O F A HOMEOWNERS 13
ASSOCIATION; OR 14
(5) POSSESS CANNABIS , INCLUDING CANNABIS P RODUCTS, IN A 15
LOCAL DETENTIO N FACILITY, COUNTY JAIL, STATE PRISON, REFORMATORY , OR 16
OTHER CORRECTIONAL F ACILITY, INCLUDING A FACILITY FOR THE DETENTION OF 17
JUVENILE OFFENDERS . 18
(B) THE PROVISIONS OF SUB SECTION (A)(4) OF THIS SECTION DO N OT 19
APPLY TO VAPORIZING CANNABIS. 20
36–1103. 21
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 22
INDICATED. 23
(2) “HEMP” HAS THE MEANING STAT ED IN § 14–401 OF THE 24
AGRICULTURE ARTICLE. 25
(3) “TETRAHYDROCANNABINOL ” MEANS: 26
(I) ANY TETRAHYDROCANNAB INOL, INCLUDING 27
DELTA–8–TETRAHYDROCANNABINOL , DELTA–9–TETRAHYDROCANNABINOL , AND 28
DELTA–10–TETRAHYDROCANNABINOL , REGARDLESS OF HOW DE RIVED; 29 HOUSE BILL 556 89
(II) ANY OTHER CANNABINOI D, EXCEPT CANNABIDIOL T HAT THE 1
ADMINISTRATION DETERM INES TO CAUSE INTOXI CATION; AND 2
(III) ANY OTHER C HEMICALLY SIMILAR CO MPOUND, SUBSTANCE, 3
DERIVATIVE, OR ISOMER OF TETRAHY DROCANNABINOL , AS IDENTIFIED BY THE 4
ADMINISTRATION . 5
(4) “TINCTURE” MEANS A SOLUTION THA T IS: 6
(I) DISSOLVED IN ALCOHOL , GLYCERIN, OR VEGETABLE OIL ; 7
AND 8
(II) DISTRIBUTED IN A D ROPPER BOTTLE OF 4 OUNCES OR LESS . 9
(A) (B) (1) A PERSON MAY NOT SELL OR DISTRIBUTE A PROD UCT 10
INTENDED FOR HUMAN C ONSUMPTION OR INHALA TION THAT CONTAINS M ORE THAN 11
0.5 MILLIGRAMS OF TETRAH YDROCANNABINOL PER S ERVING OR 2.5 MILLIGRAMS 12
OF TETRAHYDROCANNABI NOL PER PACKAGE UNLE SS THE PERSON IS LIC ENSED 13
UNDER § 36–401 OF THIS TITLE AND TH E PRODUCT COMPLIES W ITH THE: 14
(I) MANUFACTURING STANDA RDS ESTABLISHED UNDE R § 15
36–203 OF THIS TITLE; 16
(II) LABORATORY TESTING S TANDARDS ESTABLISHED UNDER § 17
36–203 OF THIS TITLE; AND 18
(III) PACKAGING AND LABELI NG STAND ARDS ESTABLISHED 19
UNDER § 36–203 OF THIS TITLE. 20
(2) A PERSON MAY NOT SELL OR DISTRIBUTE A PROD UCT DESCRIBED 21
UNDER PARAGRAPH (1) OF THIS SUBSECTION T O AN INDIVIDUAL UNDE R THE AGE OF 22
21 YEARS. 23
(B) (C) A PERSON MAY NOT SELL OR DISTRIBUTE A CANN ABINOID 24
PRODUCT THAT IS NOT DERIVED FROM NATURAL LY OCCURRING BIOLOGI CALLY 25
ACTIVE CHEMICAL CONS TITUENTS. 26
(D) (1) NOTWITHSTANDING SUBSE CTION (B) OF THIS SECTION AND 27
SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IT IS NOT A VIOLATIO N OF THIS 28
SECTION FOR A PERSON TO SELL OR DISTRIBUTE A HEMP–DERIVED TINCTURE 29
INTENDED FOR HUMAN C ONSUMPTION THAT CONT AINS: 30
90 HOUSE BILL 556
(I) A RATIO OF CANNABIDI OL TO TETRAHYDROCANN ABINOL OF 1
AT LEAST 15 TO 1; AND 2
(II) 2.5 MILLIGRAMS OR LESS O F TETRAHYDROCANNABIN OL PER 3
SERVING AND 100 MILLIGRAMS OR LESS OF TETRAHYDR OCANNABINOL PER 4
PACKAGE. 5
(2) TO SELL OR DISTRIBUTE A HEMP–DERIVED TINCTURE UND ER THIS 6
SUBSECTION, A PERSON MUST PROVID E, AS REQUIRED BY THE ADMINISTRATION , 7
TINCTURE SAMPLES FOR THE PURPOSE OF TESTI NG TO DETERMINE CHEM ICAL 8
POTENCY AND COMPOSITION LEVELS A ND TO DETECT AND QUA NTIFY 9
CONTAMINANTS . 10
(C) (E) A PERSON WHO VIOLATES SUBSECTION (A) (B) OF THIS SECTION 11
IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS SUBJECT TO A FINE NOT 12
EXCEEDING $5,000. 13
(D) (F) A PERSON WHO VIOLATES SUBSECTION (B) (C) OF THIS SECTION 14
IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS SUBJECT TO A FINE NOT 15
EXCEEDING $10,000. 16
SUBTITLE 12. LEGAL PROTECTIONS. 17
36–1201. 18
THE FOLLOWING PERSONS ACTING IN ACCORDANCE WITH THE PROVISIONS 19
OF THIS TITLE MAY NO T BE SUBJECT TO ARRE ST, PROSECUTION , REVOCATION OF 20
MANDATORY SUPERVISIO N, PAROLE, OR PROBATION , OR ANY CIVIL OR 21
ADMINISTRATIVE PENAL TY, INCLUDING A CIVIL PE NALTY OR DISCIPLI NARY ACTION 22
BY A PROFESSIONAL LI CENSING BOARD , OR BE DENIED ANY RIG HT OR PRIVILEGE , 23
FOR THE USE OF OR PO SSESSION OF CANNABIS THAT IS AUTHORIZED U NDER THIS 24
TITLE: 25
(1) A QUALIFYING PATIENT ; 26
(2) A CANNABIS LICENSEE OR CANNABIS REGISTRA NT THAT IS 27
LICENSED OR REGISTERED UN DER THIS TITLE; 28
(3) A CERTIFYING PROVIDE R; 29
(4) A CAREGIVER; 30
(5) AN ACADEMIC RESEARCH REPRESENTATIVE PURCH ASING 31
MEDICAL CANNABIS UND ER § 36–701 SUBTITLE 7 OF THIS TITLE; 32 HOUSE BILL 556 91
(6) A HOSPITAL, MEDICAL FACILITY , OR HOSPICE PROGRAM WHERE A 1
QUALIFYING PATIENT I S RECEIVING TREATMEN T; OR 2
(7) DESIGNATED SCHOOL PE RSONNEL AUTHORIZED T O ADMINISTER 3
MEDICAL CANNABIS TO A STUDENT IN ACCORDA NCE WITH THE GUIDELI NES 4
ESTABLISHED UNDER § 7–446 OF THE EDUCATION ARTICLE UNLESS THE AC T OR 5
OMISSION CONSTITUTES GROSS NEGLIGENCE OR WANTON OR WILLFUL 6
MISCONDUCT . 7
SUBTITLE 13. CIVIL IMMUNITIES AND LIABILITIES RESERVED. 8
36–1301. 9
(A) EXCEPT AS PROVIDED IN THIS SECTION, NEITHER THE STATE NOR ANY 10
OF ITS POLITICAL SUB DIVISIONS MAY DENY A BENEFIT, AN ENTITLEMENT , A 11
DRIVER’S LICENSE, A PROFESSIONAL LICEN SE, HOUSING ASSISTANCE , SOCIAL 12
SERVICES, OR OTHER BENEFITS BA SED ON LAWFUL CANNAB IS USE OR FOR THE 13
PRESENCE OF CANNABIN OIDS OR CANNABINOID METABOLITES IN THE U RINE, 14
BLOOD, SALIVA, BREATH, HAIR, OR OTHER TISSUE OR FLUID O F AN INDIVIDUAL WHO 15
IS AT LEAST 21 YEARS OLD OR A QUALI FYING PATIENT WHO IS UNDER THE AGE OF 16
21 YEARS. 17
(B) AN INDIVIDUAL MAY NOT BE DENIED CUSTODY OF OR VISITATION WITH 18
A MINOR FOR ACTING I N ACCORDANCE WITH TH IS TITLE, UNLESS THE INDI VIDUAL’S 19
BEHAVIOR CREATES AN UNREASONABLE DANGER TO THE MINOR THAT CA N BE 20
CLEARLY ARTICULATED AND SUBSTANTIATED . 21
(C) EXCEPT AS PROVIDED IN THIS SECTION, NEITHER THE STATE NOR ANY 22
OF ITS POLITICAL SUB DIVISIONS MAY DENY E MPLOYMENT OR A CONTR ACT TO AN 23
INDIVIDUAL FOR A PRIOR CO NVICTION FOR A NONVI OLENT CANNABIS OFFEN SE 24
THAT DOES NOT INVOLV E DISTRIBUTION TO MI NORS. 25
(D) FOR THE PURPOSES OF M EDICAL CARE, INCLUDING ORGAN AND TISSUE 26
TRANSPLANTS : 27
(1) THE USE OF CANNABIS DOES NOT CONSTITUTE THE USE OF AN 28
ILLICIT SUBSTANCE OR OTHER WISE DISQUALIFY AN I NDIVIDUAL FROM NEEDE D 29
MEDICAL CARE ; AND 30
(2) MAY BE CONSIDERED ON LY WITH RESPECT TO E VIDENCE–BASED 31
CLINICAL CRITERIA . 32
92 HOUSE BILL 556
(E) (1) THIS SECTION DOES NOT PREVENT A GOVERNMENT EMPLOYER 1
FROM DISCIPLINING AN EMPLOYEE OR A CONTRACTOR FOR : 2
(I) INGESTING CANNABIS I N THE WORKPLACE ; OR 3
(II) WORKING WHILE IMPAIR ED BY CANNABIS . 4
(2) THE PROTECTIONS PROVI DED BY THIS SECTION DO NOT APPLY TO 5
THE EXTENT THAT THEY CONFLICT WITH A GOVE RNMENT EMPLOYER ’S 6
OBLIGATIONS UNDER FEDERAL LAW OR TO TH E EXTENT THAT THEY W OULD 7
DISQUALIFY THE ENTIT Y FROM A MONETARY OR LICENSING–RELATED BENEFIT 8
UNDER FEDERAL LAW . 9
(3) THIS SECTION DOES NOT AUTHORIZE ANY PERSON TO ENGAGE IN, 10
AND DOES NOT PREVENT THE IMPOSITION OF AN Y CIVIL, CRIMINAL, DISCIPLINE, OR 11
OTHER PENALTIES , INCLUDING DISCIPLINE OR TERMINATION BY A GOVERNMENT 12
EMPLOYER FOR ENGAGIN G IN ANY TASK WHILE UNDER THE INFLUENCE OF 13
CANNABIS, WHEN DOING SO WOULD CONSTITUTE NEGLIGENC E OR PROFESSIONAL 14
MALPRACTICE . 15
(F) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO PREVENT OR 16
PROHIBIT ANY EMPLOYE R FROM DENYING EMPLO YMENT OR A CONTRACT TO AN 17
INDIVIDUAL OR DISCIP LINING AN EMPLOYEE O R A CONTRACTOR FOR T ESTING 18
POSITIVE FOR THE PRE SENCE OF CANNABINOID S OR CANNABINOID MET ABOLITES 19
IN THE URINE, BLOOD, SALIVA, BREATH, HAIR, OR OTHER TISSUE OR F LUID OF THE 20
EMPLOYEE’S OR CONTRACTOR ’S BODY, IF THE TEST WAS COND UCTED IN 21
ACCORDANCE WITH THE EMPLOYER’S ESTABLISHED DRUG T ESTING POLICY. 22
36–1302. 23
(A) A HOLDER OF A PROFESSI ONAL OR OCCUPATIONAL LICENSE MAY NOT 24
BE SUBJECT TO PROFESSIO NAL DISCIPLINE FOR P ROVIDING ADVICE OR S ERVICES 25
RELATED TO CANNABIS ESTABLISHMENTS OR AP PLICATIONS TO OPERAT E 26
CANNABIS ESTABLISHME NTS ON THE BASIS THA T CANNABIS IS ILLEGA L UNDER 27
FEDERAL LAW . 28
(B) AN APPLICANT FOR A PR OFESSIONAL OR OCC UPATIONAL LICENSE MA Y 29
NOT BE DENIED A LICE NSE BASED ON PREVIOU S EMPLOYMENT RELATED TO 30
CANNABIS ESTABLISHME NTS OPERATING IN ACC ORDANCE WITH STATE LAW. 31
36–1303. 32
HOUSE BILL 556 93
AN AGENCY OR A POLITI CAL SUBDIVISION OF T HE STATE MAY NOT RELY ON A 1
VIOLATION OF FEDERAL LAW RELATED TO CANNABIS A S THE SOLE BASIS FOR 2
TAKING AN ADVERSE AC TION AGAINST A PERSO N. 3
36–1304. 4
(A) IT IS THE PUBLIC POLI CY OF THE STATE THAT CONTRACTS RELATED TO 5
THE OPERATION OF A C ANNABIS ESTABLISHMEN T LICENSED IN ACCORD ANCE WITH 6
THIS SUBTITLE ARE ENFORCEABLE . 7
(B) IT IS THE PUBLIC POLI CY OF THE STATE THAT NO CONTRAC T ENTERED 8
INTO BY A LICENSED C ANNABIS ESTABLISHMEN T OR ITS AGENTS AS A UTHORIZED IN 9
ACCORDANCE WITH A VA LID LICENSE, OR BY THOSE WHO ALLO W PROPERTY TO BE 10
USED BY A CANNABIS E STABLISHMENT , ITS EMPLOYEES , OR ITS AGENTS AS 11
AUTHORIZED IN ACCORD ANCE WITH A VALID LI CENSE, SHALL BE UNENFORCEAB LE 12
ON THE BASIS THAT CU LTIVATING, OBTAINING, MANUFACTURING , DISTRIBUTING, 13
DISPENSING, TRANSPORTING , SELLING, POSSESSING, OR USING CANNABIS IS 14
PROHIBITED BY FEDERAL LAW . 15
SUBTITLE 14. CAPITAL ACCESS PROGRAM. 16
36–1401. 17
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 18
INDICATED. 19
(B) “BORROWER” MEANS A BUSINESS THA T: 20
(1) QUALIFIES AS A SMALL BUSINESS UNDER THE U.S. SMALL 21
BUSINESS ADMINISTRATION SIZE STANDARDS ; 22
(2) APPLIES TO A LENDER FOR BUSINESS FINANCI NG; AND 23
(3) HAS FEWER THAN 50 EMPLOYEES. 24
(C) “DEPARTMENT ” MEANS THE DEPARTMENT OF COMMERCE. 25
(C) (D) “LENDER” MEANS: 26
(1) A CREDIT UNION , AS DEFINED IN § 1–101 OF THE FINANCIAL 27
INSTITUTIONS ARTICLE; 28
(2) A FINANCIAL INSTITUT ION, AS DEFINED IN § 1–101 OF THE 29
FINANCIAL INSTITUTIONS ARTICLE; OR 30 94 HOUSE BILL 556
(3) A COMMUNITY DEVELOPM ENT FINANCIAL INSTIT UTION, AS 1
DEFINED IN 12 U.S.C. § 4702(5). 2
(D) (E) “PROGRAM” MEANS THE CAPITAL ACCESS PROGRAM 3
ESTABLISHED UNDER TH IS SUBTITLE. 4
36–1402. 5
THERE IS A CAPITAL ACCESS PROGRAM IN THE DEPARTMENT OF 6
COMMERCE. 7
36–1403. 8
THE PURPOSE OF THE PROGRAM IS TO STIMULA TE OPPORTUNITIES FOR 9
SOCIAL EQUITY LICENSEES THAT HAVE DIFFICULTY OBTAINING FINANCING AND TO 10
ESTABLISH A LOAN LOS S RESERVE ACCOUNT . 11
36–1404. 12
(A) A LOAN TO A SOCIAL EQU ITY LICENSEE QUALIFI ES UNDER THE 13
PROGRAM IF THE LOAN : 14
(1) SATISFIES THE LENDIN G CRITERIA OF THE FINANCIAL 15
INSTITUTION LENDER; AND 16
(2) HAS A TERM NOT EXCEE DING 10 YEARS; AND 17
(3) DOES NOT EXCEED : 18
(I) FOR A DISPENSARY , $500,000; OR 19
(II) FOR A GROWER OR PROC ESSOR, $1,000,000. 20
(B) A LOAN THAT QUALIFIES UNDER SUBSECTION (A) OF THIS SECTION MAY 21
BE SHORT OR LONG TERM, HAVE FIXED OR VARIAB LE RATES, AND BE SECURED OR 22
UNSECURED . 23
36–1405. 24
(A) IF A LENDER WOULD LIK E TO TO PARTICIPATE IN THE PROGRAM, THE 25
LENDER MUST A LENDER SHALL ENROLL THE QUALIFYIN G LOAN IN THE PROGRAM 26
NOT MORE THAN 30 DAYS AFTER THE DATE OF THE FIRST DISBURSEMENT OF THE 27
LOAN. 28 HOUSE BILL 556 95
(B) A LENDER MAY ENROLL AL L OR A PORTION OF A QUALIFYING LOAN IN 1
AN AMOUNT OF NOT MOR E THAN: 2
(1) FOR A DISPENSARY , $500,000; OR 3
(2) FOR A GROWER OR PROC ESSOR, $1,000,000. 4
36–1406. 5
(A) THE DEPARTMENT SHALL ESTA BLISH A LOAN LOSS RESERVE ACCOUNT 6
FOR A LENDER WHEN TH E LENDER ENROLLS ITS FIRST LOAN UNDER THE PROGRAM. 7
(B) AT THE TIME OF ENROLL MENT: 8
(1) THE BORROWER SHALL M AKE A PAYMENT TO THE ACCOUNT OF 9
BETWEEN 0% AND 7% OF THE ENROLLED LOAN AMOUNT; 10
(2) THE LENDER SHALL MAKE A PAYMENT TO THE ACCOUNT OF AT 11
LEAST 2% OF THE ENROLLED AMOU NT; AND 12
(3) THE DIVISION ADMINISTRATION SHALL MAKE A MATCHIN G 13
PAYMENT TO THE ACCOU NT IN AN AMOUNT EQUA L TO THE BORROWER AN D 14
LENDER’S AGGREGATE PAYMENT UNDER ITEMS (1) AND (2) OF THIS SUBSECTION. 15
(C) THE LOAN LOSS RESERVE ACCOUNT OF A LENDER SHALL BE AVAILABLE 16
FOR THE LENDER TO WI THDRAW IF A BORROWER DEFAULTS ON A QUALIF YING LOAN. 17
(D) THE DEPARTMENT SHALL COLL ABORATE WITH THE OFFICE OF SOCIAL 18
EQUITY ESTABLISHED UN DER § 1–309.1 OF THIS ARTICLE TO IDEN TIFY AND ASSIST 19
BUSINESSES WITH OBTA INING FINANCING FROM THE PROGRAM. 20
(E) THE DEPARTMENT SHALL ESTA BLISH PROCEDURES FOR A LENDER TO 21
WITHDRAW FROM THE PROGRAM. 22
SUBTITLE 15. BANKING AND INSURANCE. 23
36–1501. 24
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 25
INDICATED. 26
(B) “CANNABIS–RELATED LEGITIMATE B USINESS” MEANS A 27
MANUFACTURER , PRODUCER, OR ANOTHER PERSON TH AT: 28 96 HOUSE BILL 556
(B) “CANNABIS BUSINESS ” MEANS A MANUFACTURER , PRODUCER, OR 1
ANOTHER PERSON THAT : 2
(1) PARTICIPATES IN ANY BUSINESS OR ORGANIZED ACTIVITY THAT 3
INVOLVES HANDLING CA NNABIS OR CANNABIS P RODUCTS, INCLUDING 4
CULTIVATING, PRODUCING, MANUFACTURING , SELLING, TRANSPORTING , 5
DISPLAYING, DISPENSING, DISTRIBUTING, OR PURCHASING CANNAB IS OR CANNABIS 6
PRODUCTS; AND 7
(2) ENGAGES IN AN ACTIVITY DES CRIBED IN ITEM (1) OF THIS 8
SUBSECTION IN ACCORD ANCE WITH STATE LAW. 9
(C) “DEPOSITORY INSTITUTIO N” MEANS A STATE–CHARTERED OR 10
FEDERALLY CHARTERED FINANCIAL INSTITUTIO N, OTHER–STATE BANK , OR 11
FOREIGN BRANCH THAT : 12
(1) IS LOCATED IN THE STATE OR MAINTAINS BR ANCHES IN THE 13
STATE; AND 14
(2) IS AUTHORIZED TO MAI NTAIN ACCOUNTS . 15
(C) (D) (1) “SERVICE PROVIDER ” MEANS A BUSINESS , AN 16
ORGANIZATION , OR ANY OTHER PERSON THAT: 17
(I) SELLS GOODS OR SERVI CES TO A CANNABIS–RELATED 18
CANNABIS LEGITIMATE BUSINESS; OR 19
(II) PROVIDES ANY BUSINES S SERVICES, INCLUDING THE SALE 20
OR LEASE OF REAL OR ANY OTHER PROPERTY , LEGAL OR OTHER LICEN SED 21
SERVICES, OR ANY OTHER ANCILLA RY SERVICE, RELATING TO CANNABIS . 22
(2) “SERVICE PROVIDER ” DOES NOT INCLUDE A BUSINESS, AN 23
ORGANIZATION , OR ANY OTHER PERSON THAT PARTICIPATES IN ANY BUSINESS OR 24
ORGANIZED ACTIVITY T HAT INVOLVES HANDLIN G CANNABIS OR CANNAB IS 25
PRODUCTS, INCLUDING CULTIVATIN G, PRODUCING, MANUFACTURING , SELLING, 26
TRANSPORTING , DISPLAYING, DISPENSING, DISTRIBUTING, OR PURCHASING 27
CANNABIS OR CANNABIS PRODUCTS. 28
36–1502. 29
THE PROVISIONS IN THI S SUBTITLE APPLY TO : 30
HOUSE BILL 556 97
(1) ALL BANKS, CREDIT UNIONS , AND OTHER ENTITIES O PERATING AS 1
DEPOSITORY INSTITUTI ONS IN THE STATE; AND 2
(2) INSURANCE COMPANIES AND INSURANCE PRODUCERS 3
OPERATING IN THE STATE. 4
36–1503. 5
(A) THE STATE BANKING REGULAT OR OFFICE COMMISIONER OF 6
FINANCIAL REGULATION MAY NOT: 7
(1) TERMINATE OR LIMIT T HE DEPOSIT INSURANCE OR SHARE 8
INSURANCE OF A DEPOS ITORY INSTITUTION UN DER THE FEDERAL DEPOSIT 9
INSURANCE ACT OR THE FEDERAL CREDIT UNION ACT, A DEPOSITORY 10
INSTITUTION OPERATIN G IN THE STATE UNDER THE FINANCIAL INSTITUTIONS 11
ARTICLE, OR TAKE ANY OTHER AD VERSE ACTION AGAINST A DEPOSITORY 12
INSTITUTION UNDER 12 U.S.C. § 1818 SOLELY BECAUSE THE D EPOSITORY 13
INSTITUTION PROVIDES OR HAS PROVIDED FINA NCIAL SERVICES TO A 14
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER; 15
(2) PROHIBIT, PENALIZE, OR OTHERWISE DISCOUR AGE A 16
DEPOSITORY INSTITUTI ON FROM PROVIDING FI NANCIAL SERVICES TO A 17
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS IN THE STATE; 18
(3) RECOMMEND , INCENTIVIZE, OR ENCOURAGE A DEPOS ITORY 19
INSTITUTION NOT TO TO NOT OFFER FINANCIAL SERV ICES TO AN ACCOUNT H OLDER, 20
OR TO DOWNGRADE OR C ANCEL THE FINANCIAL SERVICES OFFERED TO AN 21
ACCOUNT HOLDER SOLEL Y BECAUSE: 22
(I) THE ACCOUNT HOLDER I S A CANNABIS–RELATED CANNABIS 23
LEGITIMATE BUSINESS OR SERVICE PROVIDER, OR IS AN EMPLOYEE , OWNER, OR 24
OPERATOR OF A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE 25
PROVIDER; 26
(II) THE ACCOUNT HOLDER L ATER BECOMES AN EMPL OYEE, 27
OWNER, OR OPERATOR OF A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS 28
OR SERVICE PROVIDER ; OR 29
(III) THE DEPOSITORY INSTI TUTION WAS NOT AWARE THAT THE 30
ACCOUNT HOLDER IS AN EMPLOYEE, OWNER, OR OPERATOR OF A 31
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER; 32
(4) TAKE ANY ADVERSE OR CORRECTIVE SUPERVISO RY ACTION ON A 33
LOAN MADE TO : 34 98 HOUSE BILL 556
(I) A CANNABIS–RELATED LEGITIMATE BUSINESS OR SERVICE 1
PROVIDER SOLELY BECA USE THE BUSINESS IS A CANNABIS–RELATED CANNABIS 2
LEGITIMATE BUSINESS OR SERVICE PROVIDER; 3
(II) AN EMPLOYEE , OWNER, OR OPERATOR OF A 4
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER 5
SOLELY BECAUSE THE E MPLOYEE, OWNER, OR OPERATOR IS EMPLO YED BY, OWNS, 6
OR OPERATES A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE 7
PROVIDER, AS APPLICABLE; OR 8
(III) AN OWNER OR OPERATOR OF REAL ESTATE OR EQ UIPMENT 9
THAT IS LEASED TO A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR 10
SERVICE PROVIDER SOL ELY BECAUSE THE OWNE R OR OPERATOR OF THE R EAL 11
ESTATE OR EQUIPMENT LEASED THE EQUIPMENT OR REAL ESTATE TO A 12
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER, AS 13
APPLICABLE; OR 14
(5) PROHIBIT OR PENALIZE A DEPOSITORY INSTITU TION, OR AN 15
ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN ASSOCIATION WITH A 16
DEPOSITORY INSTITUTI ON, OR OTHERWISE DISCOUR AGE A DEPOSITORY 17
INSTITUTION, OR AN ENTITY PERFORM ING A FINANCIAL SERV ICE FOR OR IN 18
ASSOCIATION WITH A DEPOSITOR Y INSTITUTION, FROM ENGAGING IN A F INANCIAL 19
SERVICE FOR A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE 20
PROVIDER. 21
(B) SUBSECTION (A) OF THIS SECTION SHAL L APPLY TO AN INSTIT UTION 22
APPLYING FOR A DEPOS ITORY INSTITUTION CH ARTER TO THE SAME EXTEN T AS IT 23
APPLIES TO A DEPOSIT ORY INSTITUTION . 24
36–1504. 25
FOR THE PURPOSES OF TITLE 18 U.S.C. §§ 1956 AND 1957 AND ALL OTHER 26
PROVISIONS OF FEDERA L LAW, THE PROCEEDS FROM A TRANSACTION INVOLVIN G 27
ACTIVITIES OF A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR 28
SERVICE PROVIDER MAY NOT BE CONSIDERED PR OCEEDS FROM AN UNLAW FUL 29
ACTIVITY SOLELY BECA USE: 30
(1) THE TRANSACTION INVO LVES PROCEEDS FROM A 31
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER; OR 32
(2) THE TRANSACTION INVOLVES PROCEEDS FR OM: 33
HOUSE BILL 556 99
(I) CANNABIS–RELATED CANNABIS ACTIVITIES CONDUCTED BY 1
A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS; OR 2
(II) ACTIVITIES CONDUCTED BY A SERVICE PROVIDE R. 3
36–1505. 4
(A) WITH RESPECT TO PROVI DING A FINANCIAL SER VICE TO A 5
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR A SERVIC E PROVIDER, A 6
DEPOSITORY INSTITUTI ON, ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN 7
ASSOCIATION WITH A D EPOSITORY INSTITUTIO N, OR INSURER THAT PROV IDES A 8
FINANCIAL SERVICE TO A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR 9
SERVICE PROVIDER , AND THE OFFICERS , DIRECTORS, AND EMPLOYEES OF THA T 10
DEPOSITORY INSTITUTI ON, ENTITY, OR INSURER MAY NOT B E HELD LIABLE UNDER 11
ANY STATE LAW OR REGULATI ON: 12
(1) SOLELY FOR PROVIDING THE FINANCIAL SERVIC E; OR 13
(2) FOR FURTHER INVESTIN G ANY INCOME DERIVED FROM THE 14
FINANCIAL SERVICE . 15
(B) AN INSURER THAT ENGAG ES IN THE BUSINESS O F INSURANCE WITH A 16
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER OR 17
THAT OTHERWISE ENGAG ES WITH A PERSON IN A TRANSACTION ALLOWE D UNDER 18
STATE LAW RELATED TO CANNABIS, AND THE OFFICERS , DIRECTORS, AND 19
EMPLOYEES OF THAT IN SURER MAY NOT BE HEL D LIABLE UNDER STATE LAW OR 20
REGULATION : 21
(1) SOLELY FOR ENGAGING IN T HE BUSINESS OF INSUR ANCE; OR 22
(2) FOR FURTHER INVESTIN G ANY INCOME DERIVED FROM THE 23
BUSINESS OF INSURANC E. 24
(C) A DEPOSITORY INSTITUTI ON THAT HAS A LEGAL INTEREST IN THE 25
COLLATERAL FOR A LOA N OR ANOTHER FINANCI AL SERVICE PROVIDED TO AN 26
OWNER, EMPLOYEE, OR OPERATOR OF A CANNABIS–RELATED CANNABIS 27
LEGITIMATE BUSINESS OR SERVICE PROVIDER, OR TO AN OWNER OR OP ERATOR OF 28
REAL ESTATE OR EQUIP MENT THAT IS LEASED OR SOLD TO A CANNABIS–RELATED 29
CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER, MAY NOT BE SUBJECT TO 30
CRIMINAL, CIVIL, OR ADMINISTRATIVE FO RFEITURE OF THAT LEG AL INTEREST 31
UNDER STATE LAW FOR PROVIDI NG THE LOAN OR OTHER FINANCIAL SERVICE . 32
36–1506. 33
100 HOUSE BILL 556
(A) THIS SUBTITLE DOES NO T REQUIRE A DEPOSITO RY INSTITUTION , 1
ENTITY PERFORMING A FINANCIAL SERVICE FOR OR IN ASSOCIATION WITH A 2
DEPOSITORY INSTITUTI ON, OR INSURER TO PROVID E FINANCIAL SERVICES TO A 3
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS, SERVICE PROVIDER , OR 4
ANY OTHER BUSINESS . 5
(B) THIS SUBTITLE MAY NOT BE CONSTRUED TO LIMI T OR OTHERWISE 6
RESTRICT THE GENERAL EXAMINATION , SUPERVISORY , AND ENFORCEMENT 7
AUTHORITY OF THE STATE BANKING REGULAT OR COMMISSIONER OF FINANCIAL 8
REGULATION, PROVIDED THAT THE BA SIS FOR ANY SUPERVIS ORY OR 9
ENFORCEMEN T ACTION IS NOT THE PROVISION OF FINANCI AL SERVICES TO A 10
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER. 11
(C) THIS SUBTITLE MAY NOT BE CONSTRUED TO INTE RFERE WITH THE 12
REGULATION OF THE BU SINESS OF INSURANCE . 13
36–1507. 14
THE STATE MAY NO T COOPERATE OR AID F EDERAL LAW ENFORCEME NT 15
AUTHORITIES ATTEMPTI NG TO PROSECUTE FINA NCIAL INSTITUTIONS T HAT ARE 16
LAWFULLY OPERATING W ITHIN THE CONFINES O F THIS SUBTITLE. 17
Article – Tax – General 18
2–1302.2. 19
AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–1301 THROUGH 20
2–1302.1 OF THIS SUBTITLE , OF THE SALES AND USE TAX COLLECTED UNDER § 21
11–104(K) OF THIS ARTICLE FROM THE SALE OF CANNABIS FROM A DISPENSARY TO 22
A CONSUMER UNDER TITLE 36, AS DEFINED IN § 1–101 OF THE ALCOHOLIC 23
BEVERAGES AND CANNABIS ARTICLE, THE COMPTROLLER QUARTERLY SHALL 24
DISTRIBUTE: 25
(1) TO THE CANNABIS REGULATION AND ENFORCEMENT FUND, 26
ESTABLISHED UNDER § 36–206 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 27
ARTICLE, AN AMOUNT NECESSARY TO DEFRAY THE ENTIRE COST OF T HE 28
OPERATION OF THE CANNABIS REGULATION AND ENFORCEMENT DIVISION 29
OPERATIONS AND ADMIN ISTRATIVE EXPENSES O F THE MARYLAND CANNABIS 30
ADMINISTRATION ESTABLISHED UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES 31
AND CANNABIS ARTICLE; 32
(2) AFTER MAKING THE DISTRIBUTION REQUIRED UNDER ITEM (1) OF 33
THIS SECTION: 34
HOUSE BILL 556 101
(2) (I) 30% 35% TO THE COMMUNITY REINVESTMENT AND REPAIR 1
FUND UNDER § 1–322 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE 2
FOR FISCAL YEARS 2024 THROUGH 2033; 3
(3) 1.5% TO COUNTIES AND MUNICIPALITIES , WHICH SHALL BE 4
ALLOCATED TO EACH JU RISDICTION BASED ON THE PERCENTAGE OF RE VENUE 5
COLLECTED FROM THAT JURISDICTION; 6
(3) 1.5% OF THE REVENUE COLLE CTED IN EACH COUNTY OUTSIDE 7
THE BOUNDARIES OF A MUNICIPALITY TO THE COUNTY, TO BE USED FOR 8
BEHAVIORAL HEALTH AND DRUG TREATMENT ; 9
(4) 1.5% OF THE REVENUE COLLE CTED IN EACH MUNICIP ALITY TO 10
THE MUNICIPALITY , TO BE USED FOR BEHAV IORAL HEALTH AND DRU G TREATMENT ; 11
(II) 5% TO COUNTIES, WHICH SHALL BE ALLOC ATED TO EACH 12
COUNTY BASED ON THE PERCENTAGE OF REVENU E COLLECTED FROM THA T COUNTY, 13
EXCEPT THAT A COUNTY SHALL DISTRIBUTE TO A MUNICIPALITY LOCAT ED IN THE 14
COUNTY 50% OF THE ALLOCATION RE CEIVED UNDER THIS IT EM THAT IS 15
ATTRIBUTABLE TO THE SALES AND USE TAX RE VENUE GENERATED BY A DISPENSARY 16
LOCATED IN THAT MUNIC IPALITY; 17
(4) (5) (III) 1.5% 5% TO THE CANNABIS PUBLIC HEALTH FUND 18
ESTABLISHED UNDER § 13–4505 OF THE HEALTH – GENERAL ARTICLE; 19
(5) (6) (IV) FOR FISCAL YEARS 2024 THROUGH 2028, 1.5% 5% TO 20
THE CANNABIS BUSINESS ASSISTANCE FUND ESTABLISHED UNDER § 5–1901 OF 21
THE ECONOMIC DEVELOPMENT ARTICLE; AND 22
(6) (7)(3) ANY BALANCE REMAININ G AFTER THE DISTRIBU TIONS 23
REQUIRED UNDER PARAGRAPHS (1) THROUGH ITEMS (1) AND (2) (5) (6) OF THIS 24
SECTION TO THE GENERAL FUND OF THE STATE. 25
2–1303. 26
After making the distributions required under §§ 2–1301 through [2–1302.1] 27
2–1302.2 of this subtitle, the Comptroller shall pay: 28
(1) revenues from the hotel surcharge into the Dorchester County 29
Economic Development Fund established under § 10–130 of the Economic Development 30
Article; 31
102 HOUSE BILL 556
(2) to the Blueprint for Maryland’s Future Fund established under § 5–206 1
of the Education Article, the following percentage of the remaining sales and use tax 2
revenues: 3
(i) for fiscal year 2023, 9.2%; 4
(ii) for fiscal year 2024, 11.0%; 5
(iii) for fiscal year 2025, 11.3%; 6
(iv) for fiscal year 2026, 11.7%; and 7
(v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and 8
(3) the remaining sales and use tax revenue into the General Fund of the 9
State. 10
11–104. 11
(K) THE SALES AND USE TAX RATE FOR THE SALE OF CANNABIS FROM A 12
DISPENSARY TO A CONS UMER UNDER TITLE 36, AS DEFINED IN § 1–101 OF THE 13
ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE IS AS FOLLOWS:, FOR FISCAL 14
YEAR 2024 AND EACH FISCAL YEAR THEREAFTER, 9%. 15
(1) FOR FISCAL YEAR 2024, 6%; 16
(2) FOR FISCAL YEAR 2025, 7%; 17
(3) FOR FISCAL YEAR 2026, 8%; 18
(4) FOR FISCAL YEAR 2027, 9%; AND 19
(5) FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR THEREAFTER , 20
10%. 21
11–245. 22
THE SALES AND USE TAX DOES NOT APPLY TO THE SALE OF : 23
(1) MEDICAL CANNABIS UND ER TITLE 36 OF THE ALCOHOLIC 24
BEVERAGES AND CANNABIS ARTICLE; OR 25
(2) CANNABIS BETWEEN CAN NABIS ESTABLISHMENTS BUSINESSES 26
THAT ARE LICENSED UN DER TITLE 36 OF THE ALCOHOLIC BEVERAGES AND 27
CANNABIS ARTICLE. 28 HOUSE BILL 556 103
Article – Economic Development 1
5–1901. 2
(a) (1) In this section[,] THE FOLLOWING WORDS HAVE THE MEANINGS 3
INDICATED. 4
(2) “Fund” means the Cannabis Business Assistance Fund. 5
(3) (I) “PERSONAL NET WORTH ” MEANS THE NET VALUE OF THE 6
ASSETS OF AN INDIVI DUAL REMAINING AFTER TOTAL LIABILITIES AR E DEDUCTED, 7
INCLUDING THE INDIVI DUAL’S SHARE OF ASSETS HE LD JOINTLY OR AS COM MUNITY 8
PROPERTY WITH THE IN DIVIDUAL’S SPOUSE. 9
(II) “PERSONAL NET WORTH ” DOES NOT INCLUDE : 10
1. THE INDIVIDUAL ’S OWNERSHIP INTEREST IN THE 11
APPLICANT; 12
2. THE INDIVIDUAL ’S EQUITY IN THE INDI VIDUAL’S 13
PRIMARY PLACE OF RES IDENCE; OR 14
3. THE CASH VALUE OF AN Y QUALIFIED RETIREME NT 15
SAVINGS PLANS OR IND IVIDUAL RETIREMENT A CCOUNTS. 16
(b) There is a Cannabis Business Assistance Fund. 17
(c) The purpose of the Fund is to assist small, minority –owned, and 18
women–owned businesses entering the adult–use cannabis industry. 19
(d) The Department shall administer the Fund. 20
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 21
the State Finance and Procurement Article. 22
(2) The State Treasurer shall hold the Fund separately, and the 23
Comptroller shall account for the Fund. 24
(f) The Fund consists of: 25
(1) money appropriated in the State budget to the Fund; [and] 26
(2) REVENUE DISTRIBUTED TO THE FUND IN ACCORDANCE WI TH § 27
2–1302.2 OF THE TAX – GENERAL ARTICLE; AND 28 104 HOUSE BILL 556
(3) any other money from any other source accepted for the benefit of the 1
Fund. 2
(g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only 3
for: 4
(i) grants or loans to small, minority–owned, or women–owned 5
businesses for: 6
1. license application assistance for participation in the 7
adult–use cannabis industry; 8
2. assistance with the operating or capital expenses of a 9
business participating in the adult–use cannabis industry; or 10
3. targeted training to support participation in the adult–use 11
cannabis industry; and 12
(ii) grants to historically black colleges and universities for 13
cannabis–related programs and business development organizations, including incubators, 14
to train and assist small, minority, and women business owners and entrepreneurs seeking 15
to become licensed to participate in the adult–use cannabis industry. 16
(2) The Department: 17
(i) shall prioritize awarding grants and loans in accordance with 18
paragraph (1) of this subsection to: 19
1. populations that have been historically disproportionately 20
impacted by the enforcement of laws criminalizing the use of cannabis; and 21
2. individuals who have been convicted of a violation of a law 22
criminalizing the use of cannabis; and 23
3. SOCIAL EQUITY LICENS EES TO ASSIST WITH 24
START–UP OPERATING AND CAP ITAL FUNDING NEEDS ; AND 25
(ii) may not award grants or loans to small, minority, and women 26
business owners and entrepreneurs with a personal net worth exceeding $1,700,000. 27
(3) In order to award grants and loans in accordance with paragraph (1) of 28
this subsection, the Department shall develop partnerships with: 29
(i) traditional minority–serving institutions in the State and 30
surrounding jurisdictions, including historically black colleges and universities; 31 HOUSE BILL 556 105
(ii) trade associations representing minority and women–owned 1
businesses; and 2
(iii) the Governor’s Office of Small, Minority, and Women Business 3
Affairs. 4
(h) (1) The State Treasurer shall invest the money of the Fund in the same 5
manner as other State money may be invested. 6
(2) Any interest earnings of the Fund shall be credited to the Fund. 7
(i) Expenditures from the Fund may be made only in accordance with the State 8
budget. 9
Article – State Finance and Procurement 10
6–201. 11
(e) “Financial institution” means: 12
(1) any banking institution; 13
(2) any national banking association; 14
(3) an institution that is incorporated under the laws of any other state as 15
a bank; [and] OR 16
(4) an institution that is incorporated under the laws of this State or of the 17
United States as a savings and loan association. 18
6–226. 19
(a) (2) (i) Notwithstanding any other provision of law, and unless 20
inconsistent with a federal law, grant agreement, or other federal requirement or with the 21
terms of a gift or settlement agreement, net interest on all State money allocated by the 22
State Treasurer under this section to special funds or accounts, and otherwise entitled to 23
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 24
Fund of the State. 25
(ii) The provisions of subparagraph (i) of this paragraph do not apply 26
to the following funds: 27
170. the Cannabis Public Health Fund; [and] 28
171. the Community Reinvestment and Repair Fund; 29 106 HOUSE BILL 556
172. THE CANNABIS REGULATION AND ENFORCEMENT 1
FUND; AND 2
173. THE MEDICAL CANNABIS COMPASSIONATE USE 3
FUND. 4
Article – State Personnel and Pensions 5
23–201. 6
(a) Except as provided in subsection (b) of this section, §§ 23–203 through 23–205 7
of this subtitle apply only to: 8
(13) an individual who, on and before the effective date of participation as 9
defined under § 31–101(c) of this article, is: 10
(i) a supportive service employee of the Board of Education of Kent 11
County; 12
(ii) an employee of the Town of Oakland; 13
(iii) an employee of the City of Frostburg; 14
(iv) an employee of the Town of Sykesville; or 15
(v) an employee of the Town of University Park; [and] 16
(14) an employee of the Maryland Automobile Insurance Fund on or after 17
the date that the Maryland Automobile Insurance Fund begins participation in the 18
Employees’ Pension System; AND 19
(15) THE EXECUTIVE DIRECTOR OF THE ALCOHOL, TOBACCO, AND 20
CANNABIS COMMISSION, IF THE EXECUTIVE DIRECTOR IS NOT A SWO RN POLICE 21
OFFICER WITH THE POW ERS GRANTED TO AN OF FICER OF THE FIELD 22
ENFORCEMENT DIVISION UNDER § 1–313 OF THE ALCOHOLIC BEVERAGES AND 23
CANNABIS ARTICLE. 24
26–201. 25
(a) Except as provided in subsection (b) of this section, this subtitle applies only 26
to: 27
(22) the Executive Director of the Alcohol [and], Tobacco, AND CANNABIS 28
Commission, ONLY IF THE EXECUTIVE DIRECTOR IS A SWORN P OLICE OFFICER WITH 29
THE POWERS GRANTED T O AN OFFICER OR EMPL OYEE OF THE FIELD 30 HOUSE BILL 556 107
ENFORCEMENT DIVISION UNDER § 1–313 OF THE ALCOHOLIC BEVERAGES AND 1
CANNABIS ARTICLE. 2
Article – Health – General 3
13–4505. 4
(a) There is a Cannabis Public Health Fund. 5
(b) The purpose of the Fund is to provide funding to address the health effects 6
associated with the legalization of adult–use cannabis. 7
(c) The Department shall administer the Fund. 8
(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 9
the State Finance and Procurement Article. 10
(2) The State Treasurer shall hold the Fund separately, and the 11
Comptroller shall account for the Fund. 12
(e) The Fund consists of: 13
(1) Revenue distributed to the Fund based on revenues from adult–use 14
cannabis; 15
(2) Money appropriated in the State budget to the Fund; [and] 16
(3) REVENUE DISTRIBUTED T O THE FUND IN ACCORDANCE WI TH § 17
2–1302.2 OF THE TAX – GENERAL ARTICLE; AND 18
[(3)] (4) Any other money from any other source accepted for the benefit 19
of the Fund. 20
(f) The Fund may be used only for: 21
(1) Supporting the Advisory Council in performing its duties; 22
(2) Supporting data collection and research on the effects of cannabis 23
legalization in the State; 24
(3) Providing funding for education and public awareness campaigns 25
related to cannabis use, including funding for educational programs to be used in schools; 26
(4) Supporting substance use disorder counseling and treatment for 27
individuals; 28
108 HOUSE BILL 556
(5) Training and equipment for law enforcement to recognize impairments 1
due to cannabis; and 2
(6) Purchasing technology proven to be effective at measuring cannabis 3
levels in drivers. 4
(g) (1) The State Treasurer shall invest the money of the Fund in the same 5
manner as other State money may be invested. 6
(2) Any interest earnings of the Fund shall be credited to the Fund. 7
(h) Expenditures from the Fund may be made only in accordance with the State 8
budget. 9
SECTION 5. 6. AND BE IT FURTHER ENACTED, That Article – Alcoholic 10
Beverages of the Annotated Code of Maryland be renamed to be Article – Alcoholic 11
Beverages and Cannabis. 12
SECTION 6. 7. AND BE IT FURTHER ENACTED, That: 13
(a) The transfer of the Maryland Medical Cannabis Commission personnel to the 14
Alcohol, Tobacco, and Cannabis Commission Maryland Cannabis Administration to 15
oversee the regulation of cannabis under this Act shall be conducted in a manner that will 16
minimize the costs of the transfer and will result in a more cost–efficient operation for the 17
regulation of cannabis for the protection of the public health, safety, and welfare of the 18
State. 19
(b) The Cannabis Regulation and Enforcement Division of the Office of the 20
Executive Director of the Alcohol, Tobacco, and Cannabis Commission is the successor of 21
the Maryland Medical Cannabis Commission in matters concerning the regulation of 22
medical cannabis. 23
(b) The Maryland Cannabis Administration is the successor of the Maryland 24
Medical Cannabis Commission in matters concerning the regulation of medical cannabis. 25
(c) In every law, executive order, rule, regulation, policy, or document created by 26
an official, an employee, or a unit of this State, the names and titles of those agencies and 27
officials mean the names and titles of the successor agency or official. 28
SECTION 7. 8. AND BE IT FURTHER ENACTED, That all persons who, as of June 29
30, 2023 the effective date of this Act, are merit employees or contract staff in budgeted 30
positions of the Maryland Medical Cannabis Commission and whose positions are 31
transferred to the Cannabis Regulation and Enforcement Division of the Office of the 32
Executive Director of the Alcohol, Tobacco, and Cannabis Commission to oversee, the 33
regulation of cannabis provided by this Act, are hereby transferred to the Cannabis 34
Regulation and Enforcement Division of the Office of the Executive Director of the Alcohol, 35
Tobacco, and Cannabis Commission Maryland Cannabis Administration to oversee, the 36 HOUSE BILL 556 109
regulation of cannabis provided by this Act, are hereby transferred to the Maryland 1
Cannabis Administration without any change or loss of rights, pay, working conditions, 2
benefits, rights, or status, and shall retain any merit system and retirement status they 3
may have on the date of transfer. 4
SECTION 8. 9. AND BE IT FURTHER ENACTED, That the balance of the Natalie 5
M. LaPrade Medical Cannabis Fund on the date immediately preceding the date this Act 6
takes effect shall be credited to the Cannabis Regulation and Enforcement Fund, and that 7
any funds credited to the Cannabis Regulation and Enforcement Fund may be used to cover 8
the costs of implementing this Act and regulating the cannabis industry in Maryland. 9
SECTION 9. 10. AND BE IT FURTHER ENACTED, That, notwithstanding any 10
other provision of law, from the date this Act takes effect to December 31, 2023, both 11
inclusive, the Commission Maryland Cannabis Administration is exempt from 12
procurement requirements under the State Finance and Procurement Article if the 13
procurement is for: 14
(1) banking services for the Cannabis Regulation and Enforcement 15
Division Administration to collect fees and tax revenue; 16
(2) banking services to help support cannabis businesses to transition from 17
an all cash system; 18
(3) a consultant to support the Cannabis Regulation and Enforcement 19
Division Administration in the process for cannabis licensure, including services related to 20
investigations and the financial or criminal history review of applicants; and 21
(4) a consultant to provide technical assistance to social equity applicants; 22
and 23
(5) communication services for public and consumer education campaigns 24
on cannabis laws and regulations and potential health and safety risks associated with 25
cannabis use; and 26
(5) (6) establishing a State cannabis testing laboratory at a preexisting site. 27
SECTION 10. 11. AND BE IT FURTHER ENACTED, That: 28
(a) To the extent practicable and authorized by the U.S. Constitution, a cannabis 29
licensee shall comply with the State’s Minority Business Enterprise Program. 30
(b) On or before 6 months after the issuance of a cannabis license under § 36–401 31
of the Alcoholic Beverages and Cannabis Article, the Governor’s Office of Small, Minority, 32
and Women Business Affairs, in consultation with the Office of the Attorney General and 33
the Office of Social Equity within the Alcohol, Tobacco, and Cannabis Commission and the 34
cannabis licensee, shall establish a clear plan for setting reasonable and appropriate 35
minority business enterprise participation goals and procedures for the procurement of 36 110 HOUSE BILL 556
goods and services related to cannabis, including the cultivation, manufacturing, and 1
dispensing of cannabis. 2
(c) To the extent practicable, the goals and procedures specified in subsection (b) 3
of this section shall be based on the requirements of Title 14, Subtitle 3 of the State Finance 4
and Procurement Article and the regulations implementing that subtitle. 5
SECTION 11. 12. AND BE IT FURTHER ENACTED, That: 6
(a) (1) As soon as practicable after the effective date of this Act, the Cannabis 7
Regulation and Enforcement Division Maryland Cannabis Administration established 8
under § 36–201 of the Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 9
of this Act, shall issue a license to shall, by regulation, establish a process for issuing up to 10
five grower licenses to operate as a cannabis grower under Title 36, Subtitle 4 of the 11
Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 of this Act, to one 12
applicant five applicants that: 13
(1) is a are recognized class member members of Pigford v. Glickman, 185 14
F.R.D. 82 (D.D.C. 1999), or In Re Black Farmers Litig., 856 F. Supp. 2d 1 (D.D.C. 2011).; 15
(2) were awarded damages pursuant to the claims processes established for 16
class members of Pigford v. Glickman or In Re Black Farmers Litig. and those damages 17
were related to farming operations in Maryland; 18
(3) have provided evidence, suitable to the Administration and consistent 19
with constitutional and federal requirements, that they have not been fully compensated for 20
the discrimination they have endured and that they have experienced ongoing 21
discrimination or the continued effects of past discrimination; and 22
(4) satisfy any other criteria established by the Administration. 23
(2) An applicant awarded a license under paragraph (1) of this subsection 24
may subsequently apply for and be awarded a license to operate as a cannabis processor 25
under Title 36, Subtitle 4 of the Alcoholic Beverages and Cannabis Article, as enacted by 26
Section 4 5 of this Act. 27
(b) Notwithstanding any other provision of law, a license issued under subsection 28
(a) of this section is in addition to and not subject to the limitations on the total number of 29
licenses that the Division Administration may issue under Title 36, Subtitle 4 of the 30
Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 of this Act. 31
(c) If an applicant for a license to operate as a cannabis grower that is a 32
recognized class member is not awarded a license under subsection (a) of this section: 33
(1) the applicant may apply for a license in accordance with the provisions 34
of Title 36 of the Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 of 35
this Act; 36 HOUSE BILL 556 111
(2) the Division Administration shall allow the applicant to amend, if 1
necessary, and resubmit the applicant’s application or withdraw the application entirely; 2
and 3
(3) the Division Administration may waive the initial application fee for 4
the applicant but may charge the applicant a reasonable fee for the resubmission or an 5
unamended or amended application. 6
SECTION 13. 12. AND BE IT FURTHER ENACTED, That: 7
(a) As soon as practicable after the effective date of this Act, the Alcohol, Tobacco, 8
and Cannabis Commission Maryland Cannabis Administration shall contract with an 9
independent consultant to complete a study on wholesale cannabis licenses. 10
(b) The study shall include: 11
(1) the costs to regulate wholesale cannabis licenses; 12
(2) whether there is market necessity for wholesale cannabis licensing; 13
(3) whether there is a need for wholesale cannabis licensing to alleviate 14
supply demand and facilitate an equitable marketplace for suppliers and retailers; and 15
(4) the approximate number of wholesale cannabis licenses appropriate for 16
the size of the marketplace in the State. 17
(c) On or before June 1, 2024, the Alcohol, Tobacco, and Cannabis Commission 18
Maryland Cannabis Administration shall submit the results of the study required under 19
subsection (a) of this section to the Governor and, in accordance with § 2–1257 of the State 20
Government Article, the General Assembly. 21
SECTION 14. 13. AND BE IT FURTHER ENACTED, That: 22
(a) The Maryland Economic Development Corporation shall identify in each of 23
the following locations a site for proposed use as incubator space, to be established in 24
accordance with § 36–406 of the Alcoholic Beverages and Cannabis Article, as enacted by 25
Section 5 of this Act: 26
(1) Caroline County, Cecil County, Dorchester County, Kent County, 27
Queen Anne’s County, Somerset County, Talbot County, Wicomico County, or Worcester 28
County; 29
(2) Allegany County, Garrett County, or Washington County; 30
(3) Baltimore City or a beltway community located in Anne Arundel 31
County or Baltimore County; and 32 112 HOUSE BILL 556
(4) a beltway community located in Montgomery County or Prince George’s 1
County. 2
(b) The site identifications shall include: 3
(1) the proposed locations for incubator spaces identified under subsection 4
(a) of this section; 5
(2) the square footage of the identified locations; and 6
(3) the estimated costs for construction or renovation of the proposed 7
location to prepare it for use as an incubator space. 8
(c) In evaluating sites for proposed use as incubator spaces, the Maryland 9
Economic Development Corporation shall consider, in addition to other appropriate 10
criteria, the suitability of converting to incubator space obsolete or underutilized 11
commercial and retail properties such as enclosed malls, big box stores, and warehouse 12
spaces. 13
(d) On or before January 1, 2024, the Maryland Economic Development 14
Corporation shall submit a report on the identified sites and the qualifying criteria required 15
by this section to the Governor and, in accordance with § 2–1257 of the State Government 16
Article, the General Assembly. 17
SECTION 15. 14. AND BE IT FURTHER ENACTED, That: 18
(a) As soon as practicable after the effective date of this Act, the Alcohol, Tobacco, 19
and Cannabis Commission Maryland Cannabis Administration shall conduct a study on 20
on–site consumption of cannabis and cannabis products at retail premises of cannabis 21
licensees. 22
(b) The study shall include: 23
(1) a survey of regulations and trade practices for on–site consumption of 24
cannabis and cannabis products in other states and countries; 25
(2) authorizations and restrictions for the use of cannabis distributed at 26
cannabis premises and for the removal of unconsumed cannabis or cannabis products from 27
the premises; 28
(3) operational procedures and controls for on–site consumption premises 29
and the preparation, use, and consumption of cannabis and cannabis products; 30
(4) training requirements and safeguards for employees of premises with 31
on–site consumption of cannabis and cannabis products; and 32
HOUSE BILL 556 113
(5) recommendations for policies to implement on–site consumption of 1
cannabis and cannabis products at suitable locations, including suggested legislative and 2
regulatory changes. 3
(c) The Commission Administration may contract with an independent 4
contractor to conduct the study under this section. 5
(d) On or before June 1, 2024, the Alcohol, Tobacco, and Cannabis Commission 6
Maryland Cannabis Administration shall submit the results of the study required under 7
subsection (a) of this section to the Governor and, in accordance with § 2–1257 of the State 8
Government Article, the General Assembly. 9
SECTION 16. AND BE IT FURTHER ENACTED, That: 10
(a) The Alcohol, Tobacco, and Cannabis Commission shall study: 11
(1) types of cannabis products and cannabis–infused products that are not 12
meant to be smoked and that are available in neighboring states and other jurisdictions, 13
such as low–concentration edibles, cannabis–infused soft drinks and other beverages, and 14
related products; 15
(2) issues relating to processing, packaging, labeling, and use of these 16
cannabis products as they may be introduced into the Maryland adult–use cannabis 17
regulatory system; and 18
(3) regulatory and enforcement issues that may arise from the introduction 19
and availability of these cannabis products in Maryland. 20
(b) On or before July 1, 2024, the Commission shall submit a report, including 21
any proposed legislative or regulatory changes, to the Governor and, in accordance with § 22
2–1257 of the State Government Article, the Senate Finance Committee and the House 23
Economic Matters Committee. 24
SECTION 15. AND BE IT FURTHER ENACTED, That: 25
(a) This section applies only to a business awarded a grower license under § 9 of 26
Chapter 598 of the Acts of the General Assembly of 2018 that does not hold a cannabis 27
dispensary license. 28
(b) (1) A licensed grower subject to this section may apply to the Maryland 29
Cannabis Administration for and be awarded a standard dispensary license established 30
under § 36–401(c)(1)(iii) of the Alcoholic Beverages and Cannabis Article as enacted by 31
Section 5 of this Act. 32
(2) If the licensed grower meets the minimum qualifications as determined 33
by the Maryland Cannabis Ad ministration for a standard dispensary license, the 34
Administration shall award the grower a standard dispensary license. 35 114 HOUSE BILL 556
SECTION 16. AND BE IT FURTHER ENACTED, That, notwithstanding any other 1
provision of law, on or before June 30, 2024, the Governor may transfer to the Maryland 2
Cannabis Administration established under § 36–201 of the Alcoholic Beverages and 3
Cannabis Article, as enacted by Section 5 of this Act, any positions and the associated funds, 4
and any amount of the unexpended appropriation under the Alcohol and Tobacco 5
Commission – Administration and Enforcement (E17A01.01), Alcohol and Tobacco 6
Commission – Shared Services (E17A01.02), and Alcohol and Tobacco Commission – 7
Cannabis Regulatory and Enforcement Division (E17A01.03) that was included in the fiscal 8
year 2024 operating budget (House Bill 200 of the Acts of 2023). 9
SECTION 17. AND BE IT FURTHER ENACTED, That, as soon as practicable after 10
the effective date of this Act, the Alcohol, Tobacco, and Cannabis Commission and the 11
Maryland Cannabis Administration shall enter into a memorandum of understanding that 12
provides that both parties agree to collaborate in order to enforce the provisions of this Act 13
with respect to unlicensed cannabis operations in the State. 14
SECTION 18. AND BE IT FURTHER ENACTED, That notwithstanding § 15
1–309(c)(1) of the Alcoholic Beverages and Cannabis Article, as enacted by Section 5 of this 16
Act, an individual serving as the Executive Director of the Alcohol and Tobacco Commission 17
on the effective date of this Act may continue to serve as the Executive Director of the Alcohol, 18
Tobacco, and Cannabis Commission. 19
SECTION 12. 17. 19. AND BE IT FURTHER ENACTED, That the publisher of the 20
Annotated Code of Maryland, in consultation with and subject to the approval of the 21
Department of Legislative Services, shall correct, with no further action required by the 22
General Assembly, cross–references and terminology rendered incorrect by this Act. The 23
publisher shall adequately describe any correction that is made in an editor’s note following 24
the section affected. 25
SECTION 13. 18. 20. AND BE IT FURTHER ENACTED, That this Act is an 26
emergency measure, is necessary for the immediate preservation of the public health or 27
safety, has been passed by a yea and nay vote supported by three–fifths of all the members 28
elected to each of the two Houses of the General Assembly, and shall take effect from the 29
date it is enacted. 30