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Maryland House Bill HB556

Maryland 2023 Regular Session

Maryland House Bill HB556 Compare Versions

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1- WES MOORE, Governor Ch. 254
2-
3-– 1 –
4-Chapter 254
5-(House Bill 556)
6-
7-AN ACT concerning
8-
9-Cannabis Reform
10-
11-FOR the purpose of renaming the Alcohol and Tobacco Commission to be the Alcohol,
12-Tobacco, and Cannabis Commission; establishing the Maryland Cannabis
13-Administration as an independent unit of State government; establishing a
14-regulatory and licensing system for adult–use cannabis under the Commission
15-Administration; imposing the sales and use tax on the sale of adult–use cannabis at
16-certain rates in certain fiscal years at a certain rate; establishing the Office of Social
17-Equity, in the Maryland Cannabis Commission and the Advisory Board on Medical
18-and Adult–Use Cannabis, and the Social Equity Partnership Grant Fund in the
19-Commission; altering provisions of law relating to the Community Reinvestment and
20-Repair Fund; establishing the Cannabis Regulation and Enforcement Division as an
21-independent unit in the Commission; requiring the Division Administration to
22-establish and maintain a State cannabis testing laboratory; establishing the
23-Cannabis Regulation and Enforcement Fund as a special, nonlapsing fund; requiring
24-that the investment earnings of the Cannabis Regulation and Enforcement Fund be
25-credited to the Fund; repealing certain provisions of law establishing and governing
26-the Natalie M. LaPrade Medical Cannabis Commission; requiring the Division
27-Administration, rather than the Natalie M. LaPrade Medical Cannabis Commission,
28-to take certain actions related to medical cannabis; requiring the Division
29-Administration, on or before a certain date and under certain circumstances, to
30-convert medical cannabis licenses to licenses to operate a medical and adult–use
31-cannabis business; regulating the actions that local jurisdictions political
32-subdivisions may take regarding cannabis businesses; prohibiting certain
33-individuals from taking certain actions related to cannabis licensees and registrants;
34-establishing the Medical Cannabis Compassionate Use Fund as a special, nonlapsing
35-fund; requiring that the interest earnings of the Medical Cannabis Compassionate
36-Use Fund be credited to the Fund; authorizing certain entities to register with the
37-Division Administration to purchase cannabis for research purposes; establishing
38-prohibitions related to the advertising of cannabis and cannabis products; requiring
39-a person to be approved by the Division Administration to offer a certain training
40-program; establishing certain legal protections related to the use of cannabis;
41-establishing a Capital Access Program in the Department of Commerce; establishing
42-certain prohibitions related to banking by cannabis businesses; altering certain
43-provisions of law relating to the Cannabis Business Assistance Fund; exempting the
44-Commission from State procurement requirements under certain circumstances;
45-requiring a cannabis licensee, under certain circumstances, to comply with the
46-State’s Minority Business Enterprise Program; requiring the Commission to contract
47-with an independent consultant to complete a study on wholesale cannabis licenses;
48-requiring the study to be submitted to certain persons on or before a certain date;
49-requiring the Maryland Economic Development Corporation to identify certain Ch. 254 2023 LAWS OF MARYLAND
50-
51-– 2 –
52-locations and submit a certain report to the General Assembly; requiring the
53-Commission to study and report on certain matters relating to on–site consumption
54-and certain cannabis products; requiring the Administration to contract with an
55-independent consultant to complete a study on wholesale cannabis licenses; requiring
56-the study to be submitted to certain persons on or before a certain date; requiring the
57-Maryland Economic Development Corporation to identify certain locations and
58-submit a certain report to the General Assembly; requiring the Administration to
59-study and report on certain matters relating to on–site consumption; requiring that
60-certain growers be awarded certain dispensary licenses under certain circumstances;
61-and generally relating to medical and adult–use cannabis.
62-
63-BY repealing
64- Article – Health – General
65- Section 13–3301 through 13–3316 and the subtitle “Subtitle 33. Natalie M. LaPrade
66- Medical Cannabis Commission”
67- Annotated Code of Maryland
68- (2019 Replacement Volume and 2022 Supplement)
69-
70-BY repealing
71- Article – Health – General
72- The subtitle designation “Subtitle 46. Community Reinvestment and Repair Fund”
73- immediately preceding Section 13–4601
74- Annotated Code of Maryland
75- (2019 Replacement Volume and 2022 Supplement)
76- (As enacted by Chapter 26 of the Acts of the General Assembly of 2022)
77-
78-BY transferring
79- Article – Health – General
80-Section 13–4601
81- Annotated Code of Maryland
82- (2019 Replacement Volume and 2022 Supplement)
83- (As enacted by Chapter 26 of the Acts of the General Assembly of 2022)
84-to be
85- Article – Alcoholic Beverages
86-Section 1–322
87- Annotated Code of Maryland
88- (2016 Volume and 2022 Supplement)
89-
90-BY renumbering
91- Article – Alcoholic Beverages
92- Section 1–101(d) through (y) and (z) through (ii)
93- to be Section 1–101(e) through (z) and (bb) through (kk), respectively
94- Annotated Code of Maryland
95- (2016 Volume and 2022 Supplement)
96-
97-BY repealing and reenacting, without amendments, WES MOORE, Governor Ch. 254
98-
99-– 3 –
100- Article – Alcoholic Beverages
101-Section 1–101(a)
102- Annotated Code of Maryland
103- (2016 Volume and 2022 Supplement)
104-
105-BY adding to
106- Article – Alcoholic Beverages
107- Section 1–101(d) and (aa), 1–309.1, 1–309.2, and 1–323; and 36–101 through
108- 36–1507 to be under the new division “Division III. Cannabis”
109- Annotated Code of Maryland
110- (2016 Volume and 2022 Supplement)
111-
112-BY repealing and reenacting, with amendments,
113- Article – Alcoholic Beverages
114- Section 1–101(g) and (r)
115- Annotated Code of Maryland
116- (2016 Volume and 2022 Supplement)
117- (As enacted by Section 4 of this Act)
118-
119-BY repealing and reenacting, with amendments,
120- Article – Alcoholic Beverages
121-Section 1–101(f) and (q) 1–202; and 1–302, 1–303(a), 1–304, 1–307 through 1–310,
122-and 1–313 to be under the amended subtitle “Subtitle 3. Alcohol, Tobacco, and
123-Cannabis Commission”
124- Annotated Code of Maryland
125- (2016 Volume and 2022 Supplement)
126-
127-BY adding to
128- Article – Alcoholic Beverages
129-Section 1–309.1, 1–309.2, and 1–323; and 36–101 through 36–1507 to be under the
130-new division “Division III. Cannabis”
131- Annotated Code of Maryland
132- (2016 Volume and 2022 Supplement)
133-
134-BY repealing and reenacting, with amendments,
135- Article – Alcoholic Beverages
136-Section 1–322
137- Annotated Code of Maryland
138- (2016 Volume and 2022 Supplement)
139- (As enacted by Section 3 of this Act)
140-
141-BY adding to
142- Article – Tax – General
143-Section 2–1302.2, 11–104(k), and 11–245
144-Annotated Code of Maryland
145- (2022 Replacement Volume) Ch. 254 2023 LAWS OF MARYLAND
146-
147-– 4 –
148-
149-BY repealing and reenacting, with amendments,
150- Article – Tax – General
151-Section 2–1303
152- Annotated Code of Maryland
153- (2022 Replacement Volume)
154-
155-BY repealing and reenacting, with amendments,
156- Article – Economic Development
157-Section 5–1901
158- Annotated Code of Maryland
159- (2018 Replacement Volume and 2022 Supplement)
160-
161-BY repealing and reenacting, without amendments,
162- Article – State Finance and Procurement
163-Section 6–226(a)(2)(i)
164- Annotated Code of Maryland
165- (2021 Replacement Volume and 2022 Supplement)
166-
167-BY repealing and reenacting, with amendments,
168- Article – State Finance and Procurement
169-Section 6–201(e) and 6–226(a)(2)(ii)170. and 171.
170- Annotated Code of Maryland
171- (2021 Replacement Volume and 2022 Supplement)
172-
173-BY adding to
174- Article – State Finance and Procurement
175-Section 6–226(a)(2)(ii)172. and 173.
176- Annotated Code of Maryland
177- (2021 Replacement Volume and 2022 Supplement)
178-
179-BY repealing and reenacting, with amendments,
180- Article – State Personnel and Pensions
181- Section 23–201(a)(13) and (14) and 26–201(a)(22)
182- Annotated Code of Maryland
183- (2015 Replacement Volume and 2022 Supplement)
184-
185-BY adding to
186- Article – State Personnel and Pensions
187- Section 23–201(a)(15)
188- Annotated Code of Maryland
189- (2015 Replacement Volume and 2022 Supplement)
190-
191-BY repealing and reenacting, with amendments,
192- Article – Health – General
193-Section 13–4505 WES MOORE, Governor Ch. 254
194-
195-– 5 –
196- Annotated Code of Maryland
197- (2019 Replacement Volume and 2022 Supplement)
198-
199-BY renaming
200- Article – Alcoholic Beverages
201- to be Article – Alcoholic Beverages and Cannabis
202- Annotated Code of Maryland
203- (2016 Volume and 2022 Supplement)
204-
205- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
206-That Section(s) 13–3301 through 13–3316 and the subtitle “Subtitle 33. Natalie M. LaPrade
207-Medical Cannabis Commission” of Article – Health – General of the Annotated Code of
208-Maryland be repealed.
209-
210- SECTION 2. AND BE IT FURTHER ENACTED, That the subtitle design ation
211-“Subtitle 46. Community Reinvestment and Repair Fund” immediately preceding §
212-13–4601 of the Health – General Article be repealed.
213-
214- SECTION 3. AND BE IT FURTHER ENACTED, That Section(s) 13 –4601 of Article
215-– Health – General of the Annotated Code of Maryland be transferred to be Section(s)
216-1–322 of Article – Alcoholic Beverages of the Annotated Code of Maryland.
217-
218- SECTION 4. AND BE IT FURTHER ENACTED, That Section(s) 1 –101(d) through
219-(y) and (z) through (ii) of Article – Alcoholic Beverages of the Annotated Code of Maryland
220-be renumbered to be Section(s) 1–101(e) through (z) and (bb) through (kk), respectively.
221-
222- SECTION 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
223-as follows:
224-
225-Article – Alcoholic Beverages
226-
227-1–101.
228-
229- (a) In this article the following words have the meanings indicated.
230-
231- (D) (1) “CANNABIS” MEANS THE PLANT CANNABIS SATIVA L. AND ANY
232-PART OF THE PLANT , INCLUDING ALL DERIVA TIVES, EXTRACTS, CANNABINOIDS ,
233-ISOMERS, ACIDS, SALTS, AND SALTS OF ISOMERS , WHETHER GROWING OR N OT, WITH
234-A DELTA–9–TETRAHYDROCANNABINOL CONCENTRATION GREATE R THAN 0.3% ON A
235-DRY WEIGHT BASIS .
236-
237- (2) “CANNABIS” INCLUDES CANNABIS PR ODUCTS.
238-
239- (3) “CANNABIS” DOES NOT INCLUDE HEM P OR HEMP PRODUCTS , AS
240-DEFINED IN § 14–101 OF THE AGRICULTURE ARTICLE.
241- Ch. 254 2023 LAWS OF MARYLAND
242-
243-– 6 –
244- (f) (g) “Commission” means the Alcohol [and], Tobacco, AND CANNABIS
245-Commission.
246-
247- (q) (r) (1) “License holder” means the holder of [a] AN ALCOHOLIC BEVERAGE
248-BEVERAGES license issued or a permit granted under this article.
249-
250- (2) “License holder” includes:
251-
252- (i) a county liquor control board and a county dispensary; and
253-
254- (ii) for the delivery and billing purposes of Title 2, Subtitle 3 and §§
255-2–213 and 2–314 of this article, a corporation on behalf of which an individual has obtained
256-a license.
257-
258- (AA) “POLITICAL SUBDIVISION” MEANS A COUNTY OR A MUNICIPALITY.
259-
260-1–202.
261-
262- (a) To the extent that a statement of a general rule of law conflicts or is
263-inconsistent with an exception or a qualification applicable to a special area, particular
264-person, or set of circumstances, the exception or qualification prevails.
265-
266- (b) A provision in Division II of this article prevails over a conflicting or
267-inconsistent provision in Division I of this article or a provision in the Tax – General Article
268-relating to alcoholic beverages.
269-
270- (C) A PROVISION IN DIVISION III OF THIS ARTICLE PREV AILS OVER A
271-CONFLICTING OR INCON SISTENT PROVISION IN DIVISION I OF THIS ARTICLE OR A
272-PROVISION IN THE TAX – GENERAL ARTICLE RELATING TO C ANNABIS.
273-
274-Subtitle 3. Alcohol [and], Tobacco, AND CANNABIS Commission.
275-
276-1–302.
277-
278- There is an Alcohol [and], Tobacco, AND CANNABIS Commission.
279-
280-1–303.
281-
282- (a) (1) The Commission consists of [five] SEVEN members to be appointed by
283-the Governor with the advice and consent of the Senate.
284-
285- (2) The presiding officer of either House of the General Assembly may
286-recommend to the Governor a list of individuals for appointment to the Commission.
287-
288- (3) Of the Commission members: WES MOORE, Governor Ch. 254
289-
290-– 7 –
291-
292- (i) one shall be knowledgeable and experienced in public health
293-matters;
294-
295- (ii) one shall be knowledgeable and experienced in law enforcement
296-matters;
297-
298- (iii) one shall be knowledgeable and experienced in the alcoholic
299-beverages industry; [and]
300-
301- (IV) TWO SHALL BE KNOWLED GEABLE AND EXPERIENC ED IN
302-THE CANNABIS INDUSTR Y ONE SHALL HAVE EXPER TISE IN CANNABIS RESEARCH AN D
303-POLICY;
304-
305- (V) ONE SHALL HAVE EXPER TISE IN ALCOHOL AND TOBACCO
306-POLICY; AND
307-
308- [(iv)] (V) (VI) two shall be members of the public who are
309-knowledgeable and experienced in fiscal matters and shall have substantial experience:
310-
311- 1. as an executive with fiduciary responsibilities in charge of
312-a large organization or foundation;
313-
314- 2. in an academic field relating to finance or economics; or
315-
316- 3. as an accountant, an economist, or a financial analyst.
317-
318- (4) In addition to the members appointed under paragraph (3) of this
319-subsection, the Secretary of Health and the Secretary of State Police, or their designees,
320-may participate in the Commission as ex officio nonvoting members.
321-
322-1–304.
323-
324- (a) A member of the Commission may not:
325-
326- (1) have a direct or indirect financial interest, ownership, or management,
327-including holding any stocks, bonds, or other similar financial interests, in the alcohol [or],
328-tobacco, OR CANNABIS industries;
329-
330- (2) have an official relationship to a person who holds a license or permit
331-under this article or Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation
332-Article;
333-
334- (3) be an elected official;
335- Ch. 254 2023 LAWS OF MARYLAND
336-
337-– 8 –
338- (4) receive or share in, directly or indirectly, the receipts or proceeds of any
339-activities conducted in the alcohol [or], tobacco, OR CANNABIS industries;
340-
341- (5) have a beneficial interest in any contract for the manufacture or sale of
342-any device or product or the provision of any independent consulting services in connection
343-with a holder of a license or permit issued under this article or Title 16, Title 16.5, Title
344-16.7, or Title 16.9 of the Business Regulation Article; or
345-
346- (6) accept a contribution of money or property worth at least $100 from an
347-entity or individual associated with the alcohol [or], tobacco, OR CANNABIS industries with
348-respect to the regulation of alcohol [or], tobacco, OR CANNABIS.
349-
350- (b) A member of the Commission shall file a financial disclosure statement with
351-the State Ethics Commission in accordance with Title 5, Subtitle 6 of the General
352-Provisions Article.
353-
354-1–307.
355-
356- (a) The Commission has the powers and duties set forth in this section.
357-
358- (b) The Commission shall:
359-
360- (1) educate the public, by resource sharing and serving as an information
361-clearinghouse, on such topics as:
362-
363- (i) recent increases in alcohol content for popular beer and other
364-beverages;
365-
366- (ii) the proper limits of drinking for adults;
367-
368- (iii) the adverse consequences of surpassing those limits;
369-
370- (iv) parental or adult responsibility for serving alcohol to underage
371-individuals; and
372-
373- (v) comparable topics relating to smoking, vaping, tobacco, other
374-tobacco products, [and] electronic nicotine delivery systems, CANNABIS, AND CANNABIS
375-PRODUCTS; and
376-
377- (2) subject to federal approval, ensure that all alcoholic beverages sold in
378-the State with an alcohol content exceeding 4.5% by volume bear a large and conspicuous
379-label stating the percentage of alcohol content.
380-
381- (c) (1) The Commission shall conduct studies of:
382- WES MOORE, Governor Ch. 254
383-
384-– 9 –
385- (i) the operation and administration of similar laws in other states
386-or countries; and
387-
388- (ii) federal laws that may affect the operation of the alcohol [or],
389-tobacco, OR CANNABIS industries, the literature on those industries, and the reaction of
390-residents of the State to existing and potential features of those industries.
391-
392- (2) The Commission shall submit to the Governor and, in accordance with
393-§ 2–1257 of the State Government Article, the General Assembly the studies required under
394-this subsection.
395-
396-1–308.
397-
398- The Commission shall develop best practices for:
399-
400- (1) the dedication of a minimum effective portion of the budget of a local
401-licensing board to administrative enforcement activities, such as inspections, compliance
402-checks, overservice, operations, and trade practice violations;
403-
404- (2) the carrying out of compliance checks for alcoholic beverages licenses,
405-in which each license is checked at least once a year;
406-
407- (3) the development of guidelines for the minimum capacity of inspections
408-carried out by inspectors of local licensing boards, based on the number and type of licensed
409-outlets in the licensing jurisdiction;
410-
411- (4) ensuring that alcoholic beverages inspections be based on data such as
412-the violation history of the license holder, and calls for emergency assistance, emergency
413-medical service, or nonemergency service, so that resources are being allocated based on
414-where the greatest need is;
415-
416- (5) the reporting of aggregate data between local police and local licensing
417-boards;
418-
419- (6) the development of mandatory State–provided training for liquor
420-inspectors;
421-
422- (7) reporting by the State to the affected local licensing board of a
423-State–issued license or permit within 10 days after the State receives an application;
424-
425- (8) the development of a public health impact statement for all changes to
426-the State alcoholic beverages laws; [and]
427-
428- (9) ensuring that:
429- Ch. 254 2023 LAWS OF MARYLAND
430-
431-– 10 –
432- (i) all license holders, managers, and servers receive certification
433-from an approved alcohol awareness program; and
434-
435- (ii) at least one employee who is certified in an alcohol awareness
436-program be on the licensed premises at all times when alcoholic beverages are served;
437-
438- (10) REGULATING THE CANNA BIS INDUSTRY AND IMP LEMENTING
439-PUBLIC HEALTH MEASUR ES RELATING TO CANNA BIS; AND
440-
441- (11) REGULATING , TO THE EXTENT POSSIBLE, MEDICAL AND
442-ADULT–USE CANNABIS IN A SI MILAR MANNER .
443-
444-1–309.
445-
446- (a) With the advice and consent of the Senate, the Governor shall appoint an
447-Executive Director of the Commission.
448-
449- (b) The Executive Director serves at the pleasure of the Governor.
450-
451- (c) The Executive Director shall:
452-
453- (1) have the training and experience, including knowledge of the Maryland
454-alcohol, TOBACCO, AND CANNABIS regulatory system, that is needed to direct the work of
455-the Commission; AND
456-
457- (2) be a sworn police officer with the powers granted to an officer or
458-employee of the Field Enforcement Division under § 1–313 of this subtitle; and
459-
460- (3) devote full time to the duties of office and may not engage in another
461-profession or occupation.
462-
463- (d) THE EXECUTIVE DIRECTOR MAY B E A SWORN POLICE OFF ICER WITH
464-THE POWERS GRANTED T O AN OFFICER OR EMPL OYEE OF THE FIELD
465-ENFORCEMENT DIVISION UNDER § 1–313 OF THIS SUBTITLE.
466-
467- (E) The Executive Director is entitled to the salary provided in the State budget.
468-
469-1–309.1.
470-
471- (A) (1) THERE IS AN OFFICE OF SOCIAL EQUITY WITHIN IN THE
472-COMMISSION.
473-
474- (2) THE OFFICE IS AN INDEPEND ENT OFFICE THAT FUNC TIONS
475-WITHIN THE MARYLAND CANNABIS ADMINISTRATION .
476- WES MOORE, Governor Ch. 254
477-
478-– 11 –
479- (B) (1) THE GOVERNOR SHALL APPOIN T AN EXECUTIVE DIRECTOR OF
480-THE OFFICE OF SOCIAL EQUITY.
481-
482- (2) THE EXECUTIVE DIRECTOR OF THE OFFICE OF SOCIAL EQUITY
483-SHALL HAVE AT LEAST 5 YEARS OF EXPERIENCE IN CIVIL RIGHTS ADVO CACY, CIVIL
484-RIGHTS LITIGATION , OR ANOTHER AREA OF S OCIAL JUSTICE.
485-
486- (C) THE OFFICE OF SOCIAL EQUITY MAY EMPLOY STA FF AND RETAIN
487-CONTRACTORS AS MAY BE REQ UIRED TO CARRY OUT T HE FUNCTIONS OF THE
488-OFFICE.
489-
490- (D) THE OFFICE OF SOCIAL EQUITY SHALL:
491-
492- (1) PROMOTE AND ENCOURAG E FULL PARTICIPATION IN THE
493-REGULATED CANNABIS I NDUSTRY BY PEOPLE FR OM COMMUNITIES THAT HAVE
494-PREVIOUSLY BEEN DISP ROPORTIONATELY HARMED IMPACTED BY THE WAR ON
495-DRUGS IN ORDER TO PO SITIVELY IMPACT THOS E COMMUNITIES ;
496-
497- (2) CONSULT WITH AND ASSIST THE COMPTROLLER IN THE
498-ADMINISTRATION OF TH E COMMUNITY REINVESTMENT AND REPAIR FUND UNDER
499-§ 1–322 OF THIS SUBTITLE ;
500-
501- (3) CONSULT WITH AND ASS IST THE DEPARTMENT OF COMMERCE IN
502-THE ADMINISTRATION O F THE CANNABIS BUSINESS ASSISTANCE FUND UNDER §
503-5–1901 OF THE ECONOMIC DEVELOPMENT ARTICLE;
504-
505- (4) IDENTIFY AND OPPOSE REGULATIONS THAT UNN ECESSARILY
506-BURDEN OR UNDERMINE THE LEGISLATIVE INTE NT OF THE OFFICE, INCLUDING
507-REGULATIONS THAT IMP OSE UNDUE RESTRICTIO NS OR FINANCIAL REQU IREMENTS;
508-
509- (5) PROVIDE REC OMMENDATIONS TO THE COMMISSION ON
510-REGULATIONS RELATED TO:
511-
512- (I) DIVERSITY; AND
513-
514- (II) SOCIAL EQUITY APPLIC ATIONS;
515-
516- (6) WORK WITH THE COMMISSION CANNABIS REGULATION AND
517-ENFORCEMENT DIVISION MARYLAND CANNABIS ADMINISTRATION TO IMPLEMENT
518-FREE TECHNICAL ASSISTANCE FOR SOCIA L EQUITY AND MINORIT Y CANNABIS
519-BUSINESS APPLICANTS ;
520- Ch. 254 2023 LAWS OF MARYLAND
521-
522-– 12 –
523- (7) PRODUCE REPORTS AND RECOMMENDATIONS ON D IVERSITY AND
524-EQUITY IN OWNERSHIP , MANAGEMENT , AND EMPLOYMENT IN TH E LEGAL CANNABIS
525-ECONOMY; AND
526-
527- (8) ASSIST BUSINESSES WI TH OBTAINING FINANCING THROUGH TH E
528-CAPITAL ACCESS PROGRAM UNDER TITLE 36, SUBTITLE 14 OF THIS ARTICLE; AND
529-
530- (9) DETERMINE WHICH INDI VIDUALS AND ENTITIES SHALL BE
531-GRANTED LOANS OR GRA NTS FROM THE CANNABIS BUSINESS ASSISTANCE FUND
532-UNDER § 5–1901 OF THE ECONOMIC DEVELOPMENT ARTICLE.
533-
534- (E) (1) ON OR BEFORE MARCH 1 EACH YEAR, THE OFFICE OF SOCIAL
535-EQUITY SHALL PRODUCE AND MAKE PUBLICLY AV AILABLE A REPORT ON HOW THE
536-FUNDS IN THE COMMUNITY REINVESTMENT AND REPAIR FUND UNDER § 1–322 OF
537-THIS SUBTITLE AND THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 5–1901
538-OF THE ECONOMIC DEVELOPMENT ARTICLE WERE WAS ALLOCATED DURING THE
539-IMMEDIATELY PRECEDIN G CALENDAR YEAR .
540-
541- (2) THE REPORT SHALL ALSO BE SUBMITTED TO THE GENERAL
542-ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE.
543-
544- (F) (1) ON OR BEFORE NOVEMBER 1 EACH YEAR, THE OFFICE OF SOCIAL
545-EQUITY SHALL SOLICIT PUBLIC INPUT ON THE USES OF THE FUNDS IN THE
546-COMMUNITY REINVESTMENT AND REPAIR FUND UNDER § 1–322 OF THIS SUBTITLE
547-AND THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 5–1901 OF THE
548-ECONOMIC DEVELOPMENT ARTICLE.
549-
550- (2) ON OR BEFORE DECEMBER 15 EACH YEAR, THE OFFICE OF
551-SOCIAL EQUITY SHALL PUBLISH A REVIEW OF THE INPU T RECEIVED UNDER
552-PARAGRAPH (1) OF THIS SUBSECTION O N A PUBLICLY ACCESSI BLE PART OF THE
553-COMMISSION’S WEBSITE.
554-
555-1–309.2.
556-
557- (A) IN THIS SECTION, “ADVISORY BOARD” MEANS THE ADVISORY BOARD
558-ON MEDICAL AND ADULT–USE CANNABIS.
559-
560- (B) THERE IS AN ADVISORY BOARD ON MEDICAL AND ADULT–USE
561-CANNABIS.
562-
563- (C) THE ADVISORY BOARD SHALL:
564- WES MOORE, Governor Ch. 254
565-
566-– 13 –
567- (1) CONSIDER ALL MATTERS SUBMITTED TO IT BY T HE COMMISSION,
568-THE GOVERNOR, THE CANNABIS REGULATION AND ENFORCEMENT DIVISION
569-MARYLAND CANNABIS ADMINISTRATION , OR THE GENERAL ASSEMBLY; AND
570-
571- (2) ON ITS OWN INITIATIV E, PROVIDE RECOMMENDATI ONS TO THE
572-COMMISSION OR THE CANNABIS REGULATION AND ENFORCEMENT DIVISION
573-MARYLAND CANNABIS ADMINISTRATION ESTABLISHED UNDER § 36–201 OF THIS
574-ARTICLE REGARDING GU IDELINES, RULES, AND REGULATIONS THAT THE ADVISORY
575-BOARD CONSIDERS IMPOR TANT OR NECESSARY FO R REVIEW AND CONSIDE RATION
576-BY THE COMMISSION OR THE CANNABIS REGULATION AND ENFORCEMENT
577-DIVISION MARYLAND CANNABIS ADMINISTRATION .
578-
579- (D) THE ADVISORY BOARD CONSISTS OF :
580-
581- (1) THE DIRECTOR OF THE CANNABIS REGULATION AND
582-ENFORCEMENT DIVISION MARYLAND CANNABIS ADMINISTRATION , WHO SHA LL
583-SERVE AS CHAIR OF THE ADVISORY BOARD; AND
584-
585- (2) THE FOLLOWING MEMBER S, APPOINTED BY THE GOVERNOR WITH
586-THE ADVICE AND CONSE NT OF THE SENATE:
587-
588- (I) THREE MEMBERS THAT H AVE SUBSTANTIAL EXPE RIENCE IN
589-ONE OR MORE OF THE F OLLOWING:
590-
591- 1. CANNABIS LAW , SCIENCE, OR POLICY;
592-
593- 2. PUBLIC HEALTH OR HEA LTH CARE;
594-
595- 3. AGRICULTURE ;
596-
597- 4. FINANCE; OR
598-
599- 5. ADDICTION TREATMENT ;
600-
601- (II) ONE ACADEMIC RESEARC HER WITH AT LEAST 5 YEARS OF
602-EXPERIENCE IN SOCIAL OR HEALTH EQUITY ;
603-
604- (III) ONE REPRESENTATIVE O F AN INDEPENDENT TES TING
605-LABORATORY REGISTERE D UNDER § 36–408 OF THIS ARTICLE;
606-
607- (IV) THREE TWO REPRESENTATIVES WHO HOLD A STANDARD
608-GROWER, PROCESSOR, OR DISPENSARY LICENSE UNDER § 36–401 OF THIS ARTICLE;
609- Ch. 254 2023 LAWS OF MARYLAND
610-
611-– 14 –
612- (V) TWO REPRESENTATIVES WHO HOLD A STANDARD
613-PROCESSOR LICENSE UN DER § 36–401 OF THIS ARTICLE;
614-
615- (VI) TWO REPRESENTATIVES WHO HOLD A STANDARD
616-DISPENSARY LICENSE U NDER § 36–401 OF THIS ARTICLE;
617-
618- (V) (VII) THREE TWO REPRESENTATIVES WHO HOLD A MICRO
619-GROWER, PROCESSOR, OR DISPENSARY LICENSE UNDER § 36–401 OF THIS ARTICLE;
620-
621- (VIII) TWO REPRESENTATIVES WHO HOLD A MICRO PRO CESSOR
622-LICENSE UNDER § 36–401 OF THIS ARTICLE;
623-
624- (IX) TWO REPRESENTATIVES WHO HOLD A MICRO DIS PENSARY
625-LICENSE UNDER § 36–401 OF THIS ARTICLE;
626-
627- (X) ONE REPRESENTATIVE WHO H OLDS AN INCUBATOR SP ACE
628-LICENSE UNDER § 36–401 OF THIS ARTICLE;
629-
630- (XI) ONE REPRESENTATIVE W HO HOLDS AN ON –SITE
631-CONSUMPTION LICENSE UNDER § 36–401 OF THIS ARTICLE;
632-
633- (VI) (XII) ONE REPRESENTATIVE O F AN ORGANIZATION TH AT
634-ADVOCATES ON BEHALF OF PATIENTS WHO ENGA GE IN THE MEDICAL US E OF
635-CANNABIS;
636-
637- (VII) (XIII) ONE REPRESENTATIVE O F AN ORGANIZATION TH AT
638-ADVOCATES ON BEHALF OF CONSUMERS WHO ENG AGE IN THE ADULT USE OF
639-CANNABIS; AND
640-
641- (VIII) (XIV) ONE HEALTH CARE PROV IDER WHO IS REGISTER ED
642-TO CERTIFY PATIENTS TO OBTAIN MEDICAL CA NNABIS UNDER § 36–301 OF THIS
643-ARTICLE.
644-
645- (E) THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE
646-MAY RECOMMEND TO THE GOVERNOR A LIST OF IN DIVIDUALS FOR APPOINTMENT
647-TO THE ADVISORY BOARD.
648-
649- (F) (1) THE TERM OF A MEMBER OF THE ADVISORY BOARD IS 4 YEARS.
650-
651- (2) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL
652-A SUCCESSOR IS APPOI NTED AND QUALIFIES .
653- WES MOORE, Governor Ch. 254
654-
655-– 15 –
656- (3) AN APPOINTED MEMBER M AY NOT SERVE MORE TH AN TWO FULL
657-TERMS.
658-
659- (4) THE POSITIONS FOR MEM BERS APPOINTED UNDER SUBSECTION
660-(D)(2)(VII) THROUGH (XI) OF THIS SECTION BECO ME EFFECTIVE WHEN TH E FIRST
661-LICENSES ARE ISSUED UNDER THOSE RESPECTI VE LICENSE TYPES .
662-
663- (G) AN APPOINTED MEMBER O F THE ADVISORY BOARD MUST BE:
664-
665- (1) AT LEAST 25 YEARS OLD;
666-
667- (2) A RESIDENT OF THE STATE WHO HAS RESIDED IN THE STATE FOR
668-AT LEAST THE IMMEDIA TELY PRECEDING 5 YEARS BEFORE THE APP OINTMENT; AND
669-
670- (3) A REGISTERED VOTER O F THE STATE.
671-
672- (H) THE ADVISORY BOARD SHALL ESTABLI SH AT LEAST TWO
673-SUBCOMMITTEES TO FOC US ON MEDICAL AND AD ULT–USE CANNABIS.
674-
675- (I) TO THE EXTENT PRACTIC ABLE AND CONSISTENT WITH FEDERAL AND
676-STATE LAW, THE MEMBERSHIP OF TH E ADVISORY BOARD SHALL REFLECT T HE
677-RACIAL, ETHNIC, AND GENDER DIVERSITY OF THE STATE.
678-
679-1–310.
680-
681- The Executive Director and all employees in the Office of the Executive Director may
682-not accept a contribution of money or property worth at least $100 from an entity or
683-individual associated with the alcohol [or], tobacco, OR CANNABIS industries with respect
684-to regulation of alcohol [or], tobacco, OR CANNABIS.
685-
686-1–313.
687-
688- (a) There is a Field Enforcement Division in the Office of the Executive Director.
689-
690- (b) (1) The Field Enforcement Division may employ officers and employees as
691-provided in the State budget.
692-
693- (2) The officers and employees of the Field Enforcement Division:
694-
695- (i) shall be sworn police officers;
696-
697- (ii) shall have the powers, duties, and responsibilities of peace
698-officers to enforce the provisions of this article relating to:
699- Ch. 254 2023 LAWS OF MARYLAND
700-
701-– 16 –
702- 1. the unlawful importation of alcoholic beverages [and],
703-tobacco, AND CANNABIS into the State;
704-
705- 2. the unlawful manufacture of alcoholic beverages [and],
706-tobacco, AND CANNABIS in the State;
707-
708- 3. the transportation and distribution throughout the State
709-of alcoholic beverages [and], tobacco, AND CANNABIS that are manufactured illegally and
710-on which any alcoholic beverages taxes [or], tobacco taxes, OR CANNABIS TAXES imposed
711-by the State are due and unpaid; and
712-
713- 4. the manufacture, sale, barter, transportation,
714-distribution, or other form of owning, handling, or dispersing alcoholic beverages [or],
715-tobacco, OR CANNABIS by any person not licensed or authorized under this article,
716-provisions of the Tax – General Article relating to alcoholic beverages [or], tobacco, OR
717-CANNABIS, or provisions of the Business Regulation Article relating to tobacco OR
718-CANNABIS; and
719-
720- (iii) may make cooperative arrangements for and work and cooperate
721-with the Office of the Comptroller, local State’s Attorneys, sheriffs, bailiffs, police, and other
722-prosecuting and peace officers to enforce this article.
723-
724- (c) The Field Enforcement Division:
725-
726- (1) shall consult with and advise the local State’s Attorneys and other law
727-enforcement officials and police officers regarding enforcement problems in their respective
728-jurisdictions; and
729-
730- (2) may recommend changes to improve the administration of this article,
731-provisions of the Tax – General Article relating to alcoholic beverages [and], tobacco, AND
732-CANNABIS, and provisions of the Business Regulation Article relating to tobacco.
733-
734-1–322.
735-
736- (a) (1) There is a Community Reinvestment and Repair Fund.
737-
738- (2) The purpose of the Fund is to provide funds to community–based
739-organizations that serve communities determined by THE OFFICE OF SOCIAL EQUITY,
740-IN CONSULTATION WITH the Office of the Attorney General, to have been the most
741-impacted by disproportionate enforcement of the cannabis prohibition before July 1, 2022.
742-
743- (3) The Comptroller shall administer the Fund.
744-
745- (4) (i) The Fund is a special, nonlapsing fund that is not subject to §
746-7–302 of the State Finance and Procurement Article. WES MOORE, Governor Ch. 254
747-
748-– 17 –
749-
750- (ii) The State Treasurer shall hold the Fund separately, and the
751-Comptroller shall account for the Fund.
752-
753- (5) The Fund consists of:
754-
755- (i) [Revenue distributed to the Fund that is at least 30% of the
756-revenues from adult–use cannabis] SALES AND USE TAX RE VENUE DISTRIBUTED TO
757-THE FUND UNDER § 2–1302.2 OF THE TAX – GENERAL ARTICLE;
758-
759- (ii) [Licensing] CONVERSION fees paid by [dual–licensed cannabis
760-establishments] BUSINESSES UNDER § 36–403 OF THIS ARTICLE ; and
761-
762- (iii) [Any] ANY other money from any other source accepted for the
763-benefit of the Fund, in accordance with any conditions adopted by the Comptroller for the
764-acceptance of donations or gifts to the Fund.
765-
766- (6) (i) The Fund may be used only for:
767-
768- 1. [Funding] FUNDING community–based initiatives
769-intended to benefit low–income communities;
770-
771- 2. [Funding] FUNDING community–based initiatives that
772-serve [communities disproportionately harmed by the cannabis prohibition and
773-enforcement] DISPROPORTIONATELY I MPACTED AREAS , AS DEFINED IN § 36–101 OF
774-THIS ARTICLE; and
775-
776- 3. [Any] ANY related administrative expenses.
777-
778- (ii) Money may not be expended from the Fund for law enforcement
779-agencies or activities.
780-
781- (iii) Money expended from the Fund is supplemental to and may not
782-supplant funding that otherwise would be appropriated for preexisting local government
783-programs.
784-
785- (7) The State Treasurer shall invest the money of the Fund in the same
786-manner as other State money may be invested.
787-
788- (8) No part of the Fund may revert or be credited to:
789-
790- (i) [The] THE General Fund of the State; or
791-
792- (ii) [Any] ANY other special fund of the State.
793- Ch. 254 2023 LAWS OF MARYLAND
794-
795-– 18 –
796- (9) The Comptroller shall pay out money from the Fund.
797-
798- (10) The Fund is subject to audit by the Office of Legislative Audits as
799-provided for in § 2–1220 of the State Government Article.
800-
801- (b) (1) The BASED ON THE PERCENTA GE ALLOCABLE TO EACH COUNTY
802-DETERMINED BY THE OFFICE OF SOCIAL EQUITY AND REPORTED B Y THE OFFICE TO
803-THE COMPTROLLER ON OR BEF ORE JULY 31 EACH YEAR, THE Comptroller shall
804-distribute funds from the Fund to each county in an amount that, for the period from July
805-1, 2002, to [June 30, 2022] JANUARY 1, 2023, both inclusive, is proportionate to the total
806-number of [cannabis arrests POSSESSION CHARGES in the county compared to the total
807-number of cannabis arrests POSSESSION CHARGES in the State] INDIVIDUALS
808-RESIDING IN THE COUNTY WHO WE RE CHARGED WITH A CA NNABIS CRIME
809-COMPARED TO THE TOTAL NUMBER OF INDI VIDUALS CHARGED WITH CANNABIS
810-CRIMES IN THE STATE.
811-
812- (2) (i) Subject to the limitations under subsection (a)(6) of this section,
813-each county shall adopt a law establishing the purpose for which money received from the
814-Fund may be used.
815-
816- (ii) On or before December 1 every 2 years, beginning in 2024, each
817-local jurisdiction POLITICAL SUBDIVISIO N THAT RECEIVES FUND S FROM THE FUND
818-UNDER PARAGRAPH (1) OF THIS SUBSECTION shall submit a report to the Governor and,
819-in accordance with § 2–1257 of the State Government Article, the Senate Budget and
820-Taxation Committee[, the Senate Finance Committee, the House Judiciary Committee, and
821-the House Health and Government Operations Committee] AND THE HOUSE
822-APPROPRIATIONS COMMITTEE on how funds received from the Fund were spent during
823-the immediately preceding 2 fiscal years.
824-
825-1–323.
826-
827- (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
828-INDICATED.
829-
830- (2) “ADMINISTRATION ” HAS THE MEANING STAT ED IN § 36–101 OF
831-THIS ARTICLE.
832-
833- (2) (3) “CANNABIS LICENSEE ” HAS THE MEANING STAT ED IN §
834-36–101 OF THIS ARTICLE.
835-
836- (3) “DIVISION” HAS THE MEANING STAT ED IN § 36–101 OF THIS
837-ARTICLE.
838- WES MOORE, Governor Ch. 254
839-
840-– 19 –
841- (4) “GRANT PROGRAM” MEANS THE SOCIAL EQUITY PARTNERSHIP
842-GRANT PROGRAM.
843-
844- (5) “OFFICE” MEANS THE OFFICE OF SOCIAL EQUITY.
845-
846- (5) (6) (I) “QUALIFYING PARTNERSHI P” MEANS A MEANINGFUL
847-PARTNERSHIP BETWEEN AN OPERATIONAL CANNA BIS LICENSEE AND A S OCIAL
848-EQUITY LICENSEE THAT :
849-
850- 1. SUPPORTS OR ADVISES THE SOCIAL EQUITY
851-LICENSEE; AND
852-
853- 2. IS AUTHORIZED BY THE COMMISSION
854-ADMINISTRATION .
855-
856- (II) “QUALIFYING PARTNERSHI P” INCLUDES A PARTNERSH IP
857-THROUGH WHICH THE OP ERATIONAL CANNABIS L ICENSEE PROVIDES ANY OF THE
858-FOLLOWING TO A SOCIA L EQUITY LICENSEE :
859-
860- 1. TRAINING;
861-
862- 2. MENTORSHIP ; OR
863-
864- 3. SHARED COMMERCIAL SP ACE OR EQUIPMENT .
865-
866- (6) (7) “SOCIAL EQUITY LICENSE E” MEANS A SOCIAL EQUIT Y
867-APPLICANT, AS DEFINED HAS THE MEANING STAT ED IN § 36–101 OF THIS ARTICLE,
868-WHO HAS BEEN AWARDED A CANNABIS LICENSE OR CANNABIS REGISTRA TION.
869-
870- (B) (1) THERE IS A SOCIAL EQUITY PARTNERSHIP GRANT PROGRAM IN
871-THE COMMISSION OFFICE.
872-
873- (2) THE PURPOSE OF THE GRANT PROGRAM IS TO PROMOTE
874-QUALIFYING PARTNERSH IPS BETWEEN OPERATIO NAL CANNABIS LICENSE ES AND
875-SOCIAL EQUITY LICENS EES.
876-
877- (C) (1) THE COMMISSION OFFICE SHALL IMPLEMENT AND ADMINISTER
878-THE GRANT PROGRAM, INCLUDING BY CLEARLY DEFINING THE PARAMET ERS OF A
879-QUALIFYING PARTNERSH IP.
880-
881- (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , THE
882-COMMISSION OFFICE HAS DISCRETION TO AP PROVE, DENY, OR REVOKE
883-QUALIFYING PARTNERSH IPS.
884- Ch. 254 2023 LAWS OF MARYLAND
885-
886-– 20 –
887- (3) (I) THE COMMISSION OFFICE MAY APPROVE QUALIFYI NG
888-PARTNERSHIPS WHERE A COST OR OTHER FEE IS IMPOSED BY AN OPERAT IONAL
889-CANNABIS LICENSEE ON A SOCIAL EQUITY LICE NSEE IF THE COST OR OTHER FEE IS
890-SUBSTANTIAL LY REDUCED FROM THE MARKET VALUE .
891-
892- (II) COSTS OR OTHER FEES U NDER SUBPARAGRAPH (I) OF THIS
893-PARAGRAPH MAY INCLUD E CHARGES FOR THE RE NT OF FACILITIES OR EQUIPMENT.
894-
895- (D) (1) THE COMMISSION OFFICE SHALL AWARD GRANTS T O
896-OPERATIONAL CANNABIS LICENSEES THAT HAVE QUALIFYING PART NERSHIPS WITH
897-A SOCIAL EQUITY LICE NSEE.
898-
899- (2) GRANT AMOUNTS SHALL B E BASED ON THE NATUR E OF THE
900-QUALIFYING PARTNERSH IP BETWEEN THE SOCIA L EQUITY LICENSEE AN D THE
901-OPERATIONAL CANNABIS LICENSEE.
902-
903- (3) IF AN OPERATIONAL CAN NABIS LICENSEE HAS A LICENSE THAT
904-WAS CONVERTED BY THE DIVISION ADMINISTRATION UNDER § 36–401(B)(1)(II) OF
905-THIS ARTICLE, THE TOTAL AWARD AMOUNT OF ANY GRANTS FROM THE COMMISSION
906-ISSUED BY THE OFFICE UNDER THIS SEC TION TO THE LICENSEE MAY NOT EXCEED:
907-
908- (I) THE COST OF THE LICENSE CONVERSI ON FEE THAT WAS
909-PAID BY THE LICENSEE ; OR
910-
911- (II) $250,000 PER YEAR PER QUALIFY ING PARTNERSHIP .
912-
913- (E) THE COMMISSION OFFICE MAY REQUIRE A GRANT RECIPIENT THAT
914-FAILS TO FULFILL THE REQUIREMENTS OF THE GRANT TO RETURN ALL OR PART OF
915-THE GRANT TO THE GRANT PROGRAM.
916-
917- (F) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER , THE
918-GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDGET BI LL AN APPROPRIATION OF
919-$5,000,000 FOR THE GRANT PROGRAM.
920-
921- (G) THE COMMISSION OFFICE SHALL ADOPT REGULATI ONS TO:
922-
923- (1) IMPLEMENT THE PROVIS IONS OF THIS SECTION ;
924-
925- (2) ADMINISTER THE GRANT PROGRAM;
926-
927- (3) ESTABLISH ELIGIBILIT Y AND GRANT APPLICAT ION
928-REQUIREMENTS ;
929- WES MOORE, Governor Ch. 254
930-
931-– 21 –
932- (4) ESTABLISH A PROCESS FOR REVIEWING GRANT APPLICATIONS
933-AND AWARDING GRANTS TO SOCIAL EQUITY OPERATIONA L CANNABIS LICENSEES;
934-AND
935-
936- (5) SPECIFY CRITERIA AND PROCEDURES TO MONITO R ELIGIBILITY
937-FOR THE GRANTS AUTHO RIZED UNDER THIS SEC TION.
938-
939-TITLE 34. RESERVED.
940-
941-TITLE 35. RESERVED.
942-
943-DIVISION III. CANNABIS.
944-
945-TITLE 36. MEDICAL AND ADULT–USE CANNABIS.
946-
947-SUBTITLE 1. DEFINITIONS.
948-
949-36–101.
950-
951- (A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS
952-INDICATED.
953-
954- (B) “ACADEMIC RESEARCH REP RESENTATIVE ” MEANS AN INDIVIDUAL WHO
955-IS:
956-
957- (1) AN EMPLOYEE OR AGENT OF AN INSTITUTION OF HIGHER
958-EDUCATION, A RELATED MEDICAL FA CILITY, OR AN AFFILIATED BIO MEDICAL
959-RESEARCH FIRM THAT F ILED A REGISTRATION WITH THE DIVISION
960-ADMINISTRATION UNDER § 36–701 OF THIS TITLE; AND
961-
962- (2) AUTHORIZED TO PURCHA SE MED ICAL CANNABIS FOR TH E
963-INSTITUTION OF HIGHE R EDUCATION, RELATED MEDICAL FACI LITY, OR AFFILIATED
964-BIOMEDICAL RESEARCH FIRM.
965-
966- (C) “ADMINISTRATION ” MEANS THE MARYLAND CANNABIS
967-ADMINISTRATION ESTABL ISHED UNDER THIS TIT LE.
968-
969- (C) (1) “CANNABIS” MEANS THE PLANT CANNABIS SATIVA L. AND ANY
970-PART OF THE PLANT , INCLUDING ALL DERIVA TIVES, EXTRACTS, CANNABINOIDS ,
971-ISOMERS, ACIDS, SALTS, AND SALTS OF ISOMERS , WHETHER GROWING OR N OT, WITH
972-A DELTA–9–TETRAHYDROCANNABINOL CONCENTRATION GREATE R THAN 0.3% ON A
973-DRY WEIGHT BASIS .
974-
975- (2) “CANNABIS” INCLUDES CANNABIS PR ODUCTS. Ch. 254 2023 LAWS OF MARYLAND
976-
977-– 22 –
978-
979- (3) “CANNABIS” DOES NOT INCLUDE HEM P OR HEMP PRODUCTS , AS
980-DEFINED IN § 14–101 OF THE AGRICULTURE ARTICLE.
981-
982- (D) (C) (D) “CANNABIS AGENT ” MEANS AN EMPLOYEE , A VOLUNTEER , OR ANY
983-OTHER AUTHORIZED PER SON WHO ACTS FOR OR AT THE D IRECTION OF A CANNAB IS
984-LICENSEE OR CANNABIS REGISTRANT.
985-
986- (E) (D) (E) “CANNABIS BUSINESS ” MEANS A BUSINESS LIC ENSED OR
987-REGISTERED BY THE DIVISION ADMINISTRATION TO OPERATE IN THE CA NNABIS
988-INDUSTRY.
989-
990- (F) (E) (F) “CANNABIS CONCENTRATE ” MEANS A PRODUCT DERIV ED FROM
991-CANNABIS THAT IS KIE F, HASHISH, BUBBLE HASH , OIL, WAX, OR ANY OTHER
992-PRODUCT PRODUCED BY EXTRACTING CANNABINO IDS FROM THE PLANT T HROUGH
993-THE USE OF SOLVENTS , CARBON DIOXIDE , OR HEAT, SCREENS, PRESSES, OR STEAM
994-DISTILLATION.
995-
996- (G) (F) (G) “CANNABIS–INFUSED PRODUCT ” MEANS OIL, WAX, OINTMENT,
997-SALVE, TINCTURE, CAPSULE, SUPPOSITORY , DERMAL PATCH , CARTRIDGE, OR ANY
998-OTHER PRODUCT CONTAI NING CANNABIS CONCEN TRATE OR USABLE CANN ABIS
999-THAT HAS BEEN PROCES SED SO THAT THE DRIE D LEAVES AND FLOWER S ARE
1000-INTEGRATED INTO OTHE R MATERIAL.
1001-
1002- (H) (G) (H) “CANNABIS LICENSEE ” MEANS A BUSINESS LIC ENSED BY THE
1003-DIVISION ADMINISTRATION TO OPERATE IN THE CA NNABIS INDUSTRY .
1004-
1005- (I) (H) (I) “CANNABIS PRODUCTS ” MEANS PRODUCTS THAT ARE COMPOSED
1006-OF CANNABIS , CANNABIS CONCENTRATE , CANNABIS EXTRACT , OR OTHER
1007-INGREDIENTS AND ARE INTENDED FOR USE OR CONSUMPTION , INCLUDING EDIBLE
1008-PRODUCTS, OILS, AND TINCTURES .
1009-
1010- (J) (I) (J) “CANNABIS REGISTRANT ” MEANS AN INDEPENDENT TESTING
1011-LABORATORY , A TRANSPORTER , A DELIVERY SERVICE , A SECURITY GUARD
1012-COMPANY, A WASTE DISPOSAL COM PANY, AND ANY OTHER TYPE O F CANNABIS
1013-BUSINESS REGISTERED UNDER THIS TITLE AND AUTHORIZED BY THE DIVISION
1014-ADMINISTRATION .
1015-
1016-(K) (J) (K) (1) “CANOPY” MEANS THE TOTAL SQUA RE FOOTAGE OF SPACE
1017-USED BY A CANNABIS L ICENSEE FOR THE PRODUCTION OF FLOWERING CANNABI S
1018-PLANTS.
1019- WES MOORE, Governor Ch. 254
1020-
1021-– 23 –
1022- (2) “CANOPY” INCLUDES EACH LAYER OF FLOWERING CANNABI S
1023-PLANTS GROWN ON ANY RACK OR SHELVING .
1024-
1025- (3) “CANOPY” DOES NOT INCLUDE SQU ARE FOOTAGE USED FOR :
1026-
1027- (I) MOTHER STOCK ;
1028-
1029- (II) PROPAGATION ;
1030-
1031- (III) IMMATURE OR NONFLOWE RING PLANTS;
1032-
1033- (IV) PROCESSING;
1034-
1035- (V) DRYING;
1036-
1037- (VI) CURING;
1038-
1039- (VII) TRIMMING;
1040-
1041- (VIII) STORAGE;
1042-
1043- (IX) OFFICES;
1044-
1045- (X) HALLWAYS;
1046-
1047- (XI) PATHWAYS;
1048-
1049- (XII) WORK AREAS ; OR
1050-
1051- (XIII) OTHER ADMINISTRATIVE AND NONPRODUCTION USES .
1052-
1053- (L) (K) (L) (1) “CAREGIVER” MEANS:
1054-
1055- (I) AN INDIVIDUAL WHO HA S AGREED TO ASSIST W ITH A
1056-QUALIFYING PATIENT ’S MEDICAL USE OF CAN NABIS; AND
1057-
1058- (II) FOR A QUALIFYING PAT IENT UNDER THE AGE O F 18 YEARS:
1059-
1060- 1. A PARENT OR LEGAL GUARDIAN; AND
1061-
1062- 2. NOT MORE THAN TWO AD DITIONAL ADULTS
1063-DESIGNATED BY THE PA RENT OR LEGAL GUARDI AN.
1064- Ch. 254 2023 LAWS OF MARYLAND
1065-
1066-– 24 –
1067- (2) “CAREGIVER” DOES NOT INCLUDE ANY DESIGNATED SCHOOL
1068-PERSONNEL AUTHORIZED TO ADMINISTER MEDICA L CANNABIS TO A STUD ENT IN
1069-ACCORDANCE WITH THE GUIDELINES ESTABLISHED UNDER § 7–446 OF THE
1070-EDUCATION ARTICLE.
1071-
1072- (M) (L) (M) “CERTIFYING PROVIDER ” MEANS AN INDIVIDUAL WHO:
1073-
1074- (1) (I) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO
1075-PRACTICE MEDICINE TH AT WAS ISSUED BY THE STATE BOARD OF PHYSICIANS
1076-UNDER TITLE 14 OF THE HEALTH OCCUPATIONS ARTICLE; AND
1077-
1078- 2. IS IN GOOD STANDING WITH THE STATE BOARD OF
1079-PHYSICIANS;
1080-
1081- (II) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO
1082-PRACTICE DENTISTRY T HAT WAS ISSUED BY TH E STATE BOARD OF DENTAL
1083-EXAMINERS UNDER TITLE 4 OF THE HEALTH OCCUPATIONS ARTICLE; AND
1084-
1085- 2. IS IN GOOD STANDING WITH THE STATE BOARD OF
1086-DENTAL EXAMINERS;
1087-
1088- (III) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO
1089-PRACTICE PODIATRY TH AT WAS ISSUED BY THE STATE BOARD OF PODIATRIC
1090-MEDICAL EXAMINERS UNDER TITLE 16 OF THE HEALTH OCCUPATIONS ARTICLE;
1091-AND
1092-
1093- 2. IS IN GOOD STANDING WITH THE STATE BOARD OF
1094-PODIATRIC MEDICAL EXAMINERS;
1095-
1096- (IV) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO
1097-PRACTICE REGISTERED NURSING OR AND HAS AN ACTIVE , UNRESTRICTED
1098-CERTIFICATION TO PRA CTICE AS A NURSE PRACTITIONER O R A NURSE MIDWIFE
1099-THAT WAS ISSUED BY T HE STATE BOARD OF NURSING UNDER TITLE 8 OF THE
1100-HEALTH OCCUPATIONS ARTICLE; AND
1101-
1102- 2. IS IN GOOD STANDING WITH THE STATE BOARD OF
1103-NURSING; OR
1104-
1105- (V) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO
1106-PRACTICE AS A PHYSICIAN A SSISTANT ISSUED BY T HE STATE BOARD OF PHYSICIANS
1107-UNDER TITLE 15 OF THE HEALTH OCCUPATIONS ARTICLE;
1108- WES MOORE, Governor Ch. 254
1109-
1110-– 25 –
1111- 2. HAS AN ACTIVE DELEGA TION AGREEMENT WITH A
1112-PRIMARY SUPERVISING PHYSICIAN WHO IS A C ERTIFYING PROVIDER ; AND
1113-
1114- 3. IS IN GOOD STAN DING WITH THE STATE BOARD OF
1115-PHYSICIANS;
1116-
1117- (2) HAS A STATE CONTROLLED DANG EROUS SUBSTANCES
1118-REGISTRATION ; AND
1119-
1120- (3) IS REGISTERED WITH T HE DIVISION ADMINISTRATION TO MAKE
1121-CANNABIS AVAILABLE T O PATIENTS FOR MEDIC AL USE IN ACCORDANCE WITH
1122-REGULATIONS ADOPTE D BY THE DIVISION ADMINISTRATION .
1123-
1124- (N) “COMMISSION” MEANS THE ALCOHOL, TOBACCO, AND CANNABIS
1125-COMMISSION ESTABLISHE D UNDER § 1–302 OF THIS ARTICLE.
1126-
1127- (O) (M) (N) “CONSUMER” MEANS AN INDIVIDUAL AT LEAST 21 YEARS OLD
1128-WHO PURCHASES CANNABIS O R CANNABIS PRODUCTS FOR PERSONA L USE BY
1129-INDIVIDUALS AT LEAST 21 YEARS OLD.
1130-
1131- (P) (N) (O) (1) “CONTROL” MEANS:
1132-
1133- (1) (I) THE DECISION –MAKING AUTHORITY OVE R THE
1134-MANAGEMENT , OPERATIONS, OR POLICIES THAT GUI DE A BUSINESS; OR
1135-
1136- (2) (II) AUTHORITY OVER THE O PERATION OF THE TECH NICAL
1137-ASPECTS OF A BUSINES S.
1138-
1139- (2) “CONTROL” INCLUDES:
1140-
1141- (I) HOLDING A VOTING INTEREST OF 5% OR MORE IN A
1142-CANNABIS LICENSEE OR A RIGHT TO VETO SIGNIF ICANT EVENTS;
1143-
1144- (II) THE RIGHT OR AUTHORI TY TO MAKE OR VETO D ECISIONS
1145-REGARDING OPERATIONS AND STRATEGIC PLANNI NG, CAPITAL ALLOCATIONS ,
1146-ACQUISITIONS, AND DIVESTMENTS ;
1147-
1148- (III) THE RIGHT OR AUTHORI TY TO APPOINT OR REM OVE
1149-DIRECTORS, CORPORATE –LEVEL OFFICERS , OR THEIR EQUIVALENT ;
1150-
1151- (IV) THE RIGHT OR AUTHORI TY TO MAKE MAJOR MARKETING ,
1152-PRODUCTION , AND FINANCIAL DECISI ONS; AND
1153- Ch. 254 2023 LAWS OF MARYLAND
1154-
1155-– 26 –
1156- (V) THE RIGHT OR AUTHORI TY TO EXECUTE EXCLUS IVE
1157-CONTRACTS OR SIGNIFI CANT CONTRACTS IN TH E AGGREGATE OF $10,000 OR
1158-GREATER ON BEHALF OF THE LICENSEE; AND
1159-
1160- (VI) THE RIGHT OR AUTHORI TY TO EARN 5% OR MORE OF THE
1161-PROFITS OR COLLECT 5% OR MORE OF THE DIVID ENDS.
1162-
1163- (Q) (O) (P) “DELIVERY SERVICE ” MEANS A CANNABIS LIC ENSEE AUTHORIZED
1164-TO DELIVER CANNABIS IN ACCORDANCE WITH A MICRO LICENSE TO OPE RATE A
1165-DISPENSARY.
1166-
1167- (R) (P) (Q) “DISPENSARY” MEANS AN ENTITY LICENSED UNDE R THIS TITLE
1168-THAT ACQUIRES , POSSESSES, REPACKAGES , TRANSFERS, REPACKAGES ,
1169-TRANSPORTS , SELLS, DISTRIBUTES, OR DISPENSES CANNABI S OR CANNABIS
1170-PRODUCTS, INCLUDING TINCTURES , AEROSOLS, OILS, AND OINTMENTS , RELATED
1171-SUPPLIES, AND EDUCATIONAL MATERIALS FOR USE BY QUALIFYING PATIENTS ,
1172-CAREGIVERS, OR CONSUMERS THROUGH A STOREFRONT OR THRO UGH A DELIVERY
1173-SERVICE, BASED ON LICENSE TYP E.
1174-
1175- (S) (Q) (R) “DISPROPORTIONATELY IM PACTED AREA” MEANS A GEOGRAPHIC
1176-AREA IDENTIFIED BY T HE OFFICE OF SOCIAL EQUITY THAT HAS BEEN
1177-DISPROPORTIONATELY I MPACTED BY THE PROHI BITION OF CANNABIS HAD ABOVE
1178-150% OF THE STATE’S 10–YEAR AVERAGE FOR CAN NABIS POSSESSION CHA RGES, AS
1179-DETERMINED BY INFORM ATION FROM THE ADMINISTRATIVE OFFICE OF THE
1180-COURTS.
1181-
1182- (T) (R) “DIVISION” MEANS THE CANNABIS REGULATION AND
1183-ENFORCEMENT DIVISION ESTABLISHED UNDER THIS TITLE .
1184-
1185- (U) (S) (1) “EDIBLE CANNABIS PRODU CT” MEANS A CANNABIS
1186-PRODUCT INTENDED FOR HUMAN CONSUMPTION BY ORAL INGESTION , IN WHOLE OR
1187-IN PART.
1188-
1189- (2) “EDIBLE CANNABIS PRODU CT” INCLUDES A CANNABIS PRODUCT
1190-THAT DISSOLVES OR DI SINTEGRATES IN THE M OUTH.
1191-
1192- (3) “EDIBLE CANNABIS PRODU CT” DOES NOT INCLUDE ANY :
1193-
1194- (I) CANNABIS CONCENTRATE ;
1195-
1196- (II) CANNABIS–INFUSED PRODUCT , INCLUDING AN OIL , A WAX,
1197-AN OINTMENT , A SALVE, A TINCTURE, A CAPSULE, A SUPPOSITORY , A DERMAL
1198-PATCH, OR A CARTRIDGE ; OR WES MOORE, Governor Ch. 254
1199-
1200-– 27 –
1201-
1202- (III) OTHER DOSAGE FORM TH AT IS RECOGNIZED BY THE
1203-UNITED STATES PHARMACOPEIA , THE NATIONAL FORMULARY, OR THE U.S. FOOD
1204-AND DRUG ADMINISTRATION AND IS APPROVED BY THE DIVISION
1205-ADMINISTRATION .
1206-
1207- (V) (T) “GROWER” MEANS AN ENTITY LICE NSED UNDER THIS TITL E THAT:
1208-
1209- (1) CULTIVATES, OR PACKAGES, OR DISTRIBUTES CANNABIS; AND
1210-
1211- (2) IS AUTHORIZED BY THE DIVISION ADMINISTRATION TO PROVIDE
1212-CANNABIS TO OTHER CA NNABIS LICENSEES AND REGISTERED INDEPENDE NT
1213-TESTING LABORATORIES .
1214-
1215- (W) (U) “INCUBATOR SPACE ” MEANS A FACILITY OPE RATED IN
1216-ACCORDANCE WITH § 36–401 § 36–401(C)(3) OF THIS TITLE.
1217-
1218- (X) (V) “INDEPENDENT TESTING L ABORATORY ” MEANS A FACILITY , AN
1219-ENTITY, OR A SITE THAT IS RE GISTERED WITH THE DIVISION ADMINISTRATION TO
1220-PERFORM TESTS RELATE D TO THE INSPECTION AND TESTING OF CANNA BIS AND
1221-PRODUCTS CONTAINING CANNABIS.
1222-
1223- (W) “INSTITUTION OF HIGHER EDUCATION” HAS THE MEANING STAT ED IN §
1224-10–101 OF THE EDUCATION ARTICLE.
1225-
1226- (Y) (X) “MICRO LICENSE” MEANS A LICENSE ISSU ED IN ACCORDANCE
1227-WITH § 36–401 § 36–401(C)(2) OF THIS TITLE.
1228-
1229- (Z) (Y) “ON–SITE CONSUMPTION EST ABLISHMENT ” MEANS AN ENTITY
1230-LICENSED UNDER § 36–401(C)(4) OF THIS TITLE TO DISTRI BUTE CANNABIS OR
1231-CANNABIS PRODUCTS FO R ON–SITE CONSUMPTION OTHER THAN CONSUMPTI ON BY
1232-SMOKING INDOORS .
1233-
1234- (AA) (Z) “OWNER” MEANS A PERSON WITH AN OWNERSHIP INTERES T IN A
1235-CANNABIS LICENSEE .
1236-
1237- (BB) (AA) “OWNERSHIP INTEREST ” MEANS A DIRECT OR IN DIRECT EQUITY
1238-INTEREST IN A CANNAB IS LICENSEE, INCLUDING IN ITS SHA RES OR STOCK.
1239-
1240- (BB) “PASSIVE INVESTOR ” MEANS A PERSON AN INDIVIDUAL OR AN ENTITY
1241-THAT:
1242-
1243- (1) HOLDS AN AGGREGATE O WNERSHIP INTEREST OF LESS THAN 5%
1244-IN A CANNABIS LICENSEE; AND Ch. 254 2023 LAWS OF MARYLAND
1245-
1246-– 28 –
1247-
1248- (2) DOES NOT HAVE CONTRO L OF THE CANNABIS LI CENSEE.
1249-
1250- (CC) “PRINCIPAL OFFICER ” MEANS A BOARD MEMBER , A PRESIDENT, A VICE
1251-PRESIDENT, A SECRETARY, A TREASURER, A PARTNER, AN OFFICER, OR A MANAGING
1252-MEMBER, OR ANY OTHER INDIVID UAL WITH A PROF IT SHARING, FINANCIAL
1253-INTEREST, OR REVENUE SHARING A RRANGEMENT , INCLUDING AN INDIVID UAL WITH
1254-THE AUTHORITY TO CON TROL A CANNABIS LICE NSEE.
1255-
1256- (DD) “PROCESSOR” MEANS AN ENTITY LICE NSED UNDER THIS TITL E THAT:
1257-
1258- (1) TRANSFORMS CANNABIS INTO ANOTHER PRODUCT OR AN
1259-EXTRACT AND PACKAGES AND LABELS THE CANNA BIS PRODUCT; AND
1260-
1261- (2) IS AUTHORIZED BY THE DIVISION ADMINISTRATION TO PROVIDE
1262-CANNABIS TO LICENSED DISPENSARIES AND REG ISTERED INDEPENDENT TESTING
1263-LABORATORIES .
1264-
1265- (EE) “QUALIFYING PATIENT ” MEANS AN INDIVIDUAL WHO:
1266-
1267- (1) HAS BEEN PROVIDED WI TH A WRITTEN CERTIFI CATION BY A
1268-CERTIFYING PROVIDER IN ACCORDANCE WITH A BONA FIDE PROVIDER –PATIENT
1269-RELATIONSHIP ; AND
1270-
1271- (2) IF UNDER THE AGE OF 18 YEARS, HAS A CAREGIVER .
1272-
1273- (FF) “SOCIAL EQUITY APPLICA NT” MEANS AN APPLICANT FOR A CANNABIS
1274-LICENSE OR CANNABIS REGISTRATION THAT :
1275-
1276- (1) HAS AT LEAST 65% OWNERSHIP AND CONTRO L HELD BY ONE OR
1277-MORE INDIVIDUALS WHO :
1278-
1279- (I) HAVE LIVED IN A DISP ROPORTIONATELY IMPAC TED AREA
1280-FOR AT LEAST 5 OF THE 10 YEARS IMMEDIATELY PR ECEDING THE SUBMISSI ON OF
1281-THE APPLICATION ; OR
1282-
1283- (II) ATTENDED A PUBLIC SC HOOL IN A DISPROPORT IONATELY
1284-IMPACTED AREA FOR AT LEAST 5 YEARS; OR
1285-
1286- (III) FOR AT LEAST 2 YEARS, ATTENDED A 4–YEAR INSTITUTION
1287-OF HIGHER EDUCATION IN THE STATE WHERE AT LEAST 40% OF THE INDIVIDUALS
1288-WHO ATTEND THE INSTI TUTION OF HIGHER EDU CATION ARE ELIGIBLE FOR A PELL
1289-GRANT; OR
1290- WES MOORE, Governor Ch. 254
1291-
1292-– 29 –
1293- (2) MEETS ANY OTHER CRIT ERIA ESTABLISHED BY THE COMMISSION
1294-BASED ON THE RESULTS OF A DISPARITY STUDY ADMINISTRATION .
1295-
1296- (GG) (1) “SOCIAL EQUITY LICENSE E” MEANS A SOCIAL EQUIT Y APPLICANT
1297-WHO HAS BEEN AWARDED A CANNABIS LICENSE O R CANNABIS REGISTRAT ION.
1298-
1299- (2) “SOCIAL EQUITY LICENSE E” INCLUDES A GROWER , PROCESSOR,
1300-OR DISPENSARY THAT :
1301-
1302- (I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE
1303-OCTOBER 1, 2022; AND
1304-
1305- (II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022.
1306-
1307- (GG) (HH) “STANDARD LICENSE ” MEANS A LICENSE ISSU ED IN ACCORDANCE
1308-WITH § 36–401 § 36–401(C)(1) OF THIS TITLE.
1309-
1310- (HH) (II) “TRANSPORTER ” MEANS AN ENTITY REGI STERED UNDER THIS
1311-TITLE TO TRANSPORT C ANNABIS BETWEEN CANN ABIS LICENSEES AND R EGISTERED
1312-INDEPENDENT TESTING LABORATORIES .
1313-
1314- (II) (JJ) (1) “USABLE CANNABIS ” MEANS THE DRIED LEAVES AND
1315-FLOWERS OF THE CANNA BIS PLANT.
1316-
1317- (2) “USABLE CANNABIS ” DOES NOT INCLUDE SEE DLINGS, SEEDS,
1318-STEMS, STALKS, OR ROOTS OF THE PLAN T OR THE WEIGHT OF A NY NONCANNABIS
1319-INGREDIENTS COMBINED WITH CANNABIS , SUCH AS INGREDIENTS ADDED TO
1320-PREPARE A TOPICAL ADMINISTRATI ON.
1321-
1322- (JJ) (KK) “WRITTEN CERTIFICATION ” MEANS A CERTIFICATIO N THAT:
1323-
1324- (1) IS ISSUED BY A CERTI FYING PROVIDER TO A QUALIFYING PATIENT
1325-WITH WHOM THE PROVID ER HAS A BONA FIDE P ROVIDER–PATIENT RELATIONSHIP ;
1326-
1327- (2) INCLUDES A WRITTEN S TATEMENT CERTIFYING THAT , IN THE
1328-CERTIFYING PROVIDER ’S PROFESSIONAL OPINI ON, AFTER HAVING COMPLET ED AN
1329-ASSESSMENT OF THE PA TIENT’S MEDICAL HISTORY AN D CURRENT MEDICAL
1330-CONDITION, THE PATIENT HAS A CO NDITION:
1331-
1332- (I) THAT MEETS THE INCLU SION CRITERIA AND DO ES NOT
1333-MEET THE EXCLUSION C RITERIA OF THE CERTI FYING PROVIDER ’S APPLICATION;
1334-AND
1335- Ch. 254 2023 LAWS OF MARYLAND
1336-
1337-– 30 –
1338- (II) FOR WHICH THE POTENT IAL BENEFITS OF THE MEDICAL
1339-USE OF CANNABIS WOUL D LIKELY OUTWEIGH TH E HEALTH RISKS FOR T HE PATIENT;
1340-AND
1341-
1342- (3) MAY INCLUDE A WRITTE N STATEMENT CERTIFYI NG THAT, IN THE
1343-CERTIFYING PROVIDER ’S PROFESSIONAL OPINI ON, A 30–DAY SUPPLY OF MEDICA L
1344-CANNABIS WOULD BE IN ADEQUATE TO MEET THE MEDICAL NEEDS OF THE
1345-QUALIFYING PATIENT .
1346-
1347-SUBTITLE 2. CANNABIS REGULATION AND ENFORCEMENT DIVISION MARYLAND
1348-CANNABIS ADMINISTRATI ON.
1349-
1350-36–201.
1351-
1352- (A) (1) THERE IS A CANNABIS REGULATION AND ENFORCEMENT
1353-DIVISION ESTABLISHED WITHIN THE OFFICE OF THE EXECUTIVE DIRECTOR OF IN
1354-THE COMMISSION.
1355-
1356- (2) THE DIVISION IS AN INDEPE NDENT UNIT THAT FUNC TIONS
1357-WITHIN, AND REPORTS DIRECTLY ONLY TO, THE COMMISSION.
1358-
1359- (A) THERE IS A MARYLAND CANNABIS ADMINISTRATION ESTABL ISHED AS
1360-AN INDEPENDENT UNIT OF STATE GOVERNMENT .
1361-
1362- (B) (1) THERE IS A DIRECTOR OF THE DIVISION ADMINISTRATION .
1363-
1364- (2) THE GOVERNOR SHALL APPOIN T THE DIRECTOR OF THE
1365-DIVISION ADMINISTRATION WITH THE ADVICE AND CONSENT OF THE SENATE.
1366-
1367- (3) THE DIRECTOR SERVES AT TH E PLEASURE OF THE GOVERNOR.
1368-
1369- (C) THE DIRECTOR MUST HAVE TH E TRAINING AND EXPER IENCE,
1370-INCLUDING KNOWLEDGE OF THE STATE CANNABIS INDUST RY AND REGULATORY
1371-SYSTEM, THAT IS NEEDED TO DIRECT THE WORK OF THE DIVISION
1372-ADMINISTRATION .
1373-
1374- (D) THE DIVISION ADMINISTRATION MAY EMPLOY OFFICERS AND
1375-EMPLOYEES STAFF AND RETAIN CON TRACTORS AS PROVIDED IN THE STATE
1376-BUDGET.
1377-
1378- (E) THE DIVISION ADMINISTRATION :
1379- WES MOORE, Governor Ch. 254
1380-
1381-– 31 –
1382- (1) SHALL BE RESPONSIBLE FOR CARRYING OUT THE R EQUIREMENTS
1383-AND DUTIES ESTABLISH ED UNDER THIS DIVISION TITLE; AND
1384-
1385- (2) MAY RECOMMEND CHANGE S TO IMPROVE THE ADM INISTRATION
1386-OF THIS DIVISION TITLE RELATING TO THE REGU LATION OF CANNABIS .
1387-
1388- (F) THE DIVISION ADMINISTRATION SHALL ADMINISTER AND ENFORCE
1389-THIS TITLE.
1390-
1391-36–202.
1392-
1393- (A) THE DIVISION ADMINISTRATION SHALL:
1394-
1395- (1) DEVELOP AND MAINTAIN A SEED–TO–SALE TRACKING SYSTEM
1396-THAT TRACKS CANNABIS FROM EITHER THE SEED OR IMMATURE PLANT ST AGE
1397-UNTIL THE CANNABIS I S SOLD TO A PATIEN T, CAREGIVER, OR CONSUMER ;
1398-
1399- (2) CONDUCT FINANCIAL AN D CRIMINAL BACKGROUN D
1400-INVESTIGATIONS OF AN Y PERSON WHO SUBMITS AN APPLICATION FOR A CANNABIS
1401-LICENSE OR A CANNABI S LICENSEE, AS REQUIRED UNDER TH IS TITLE;
1402-
1403- (3) DEVELOP A PROCESS FO R CONSUMERS AND QUAL IFYING
1404-PATIENTS TO PURCHASE CLONES A ND SEEDS, SEEDLINGS, STALKS, ROOTS, AND
1405-STEMS OF THE CANNABI S PLANT FOR CULTIVAT ION IN ACCORDANCE WI TH § 5–601.2
1406-OF THE CRIMINAL LAW ARTICLE;
1407-
1408- (3) (4) SOLICIT, EVALUATE, AND ISSUE OR DENY AP PLICATIONS
1409-FOR CANNABIS LIC ENSES AND CANNABIS R EGISTRATIONS , INCLUDING:
1410-
1411- (I) LICENSES TO OPERATE A CANNABIS BUSINESS IN
1412-ACCORDANCE WITH THIS TITLE; AND
1413-
1414- (II) REGISTRATION FOR IND EPENDENT TESTING
1415-LABORATORIES , TRANSPORTERS , SECURITY GUARD COMPA NIES, AND WASTE
1416-DISPOSAL COMPANIES;
1417-
1418- (4) (5) AWARD OR DENY :
1419-
1420- (I) A LICENSE TO OPERATE A CANNABIS BUSINESS IN
1421-ACCORDANCE WITH THIS TITLE; AND
1422-
1423- (II) REGISTRATION TO INDE PENDENT TESTING LABO RATORIES,
1424-TRANSPORTERS , SECURITY GUARD COMPA NIES, WASTE DISPOSAL COMPA NIES, AND Ch. 254 2023 LAWS OF MARYLAND
1425-
1426-– 32 –
1427-ANY OTHER TYPE OF CA NNABIS BUSINESS AUTH ORIZED BY THE DIVISION
1428-ADMINISTRATION ;
1429-
1430- (5) (6) CONDUCT ANNOUNCED AN D UNANNOUNCED INSPEC TIONS
1431-OF ANY BUSINESS LICE NSED OR REGISTERED U NDER THIS TITLE TO E NSURE
1432-COMPLIANCE WITH THIS TITLE;
1433-
1434- (6) (7) AFTER A DETERMINATIO N THAT A VIOLATION O F THIS TITLE
1435-OR A REGULATION ADOP TED UNDER THIS TITLE HAS OCCURRED , SUSPEND, FINE,
1436-RESTRICT, OR REVOKE CANNABIS LICENSES AND CANNABI S REGISTRATIONS ,
1437-WHETHER ACTIVE , EXPIRED, OR SURRENDERED , OR IMPOSE ANY OTHER PENALTY
1438-AUTHORIZED BY THIS T ITLE OR ANY REGULATI ON ADOPTED UNDER THI S TITLE;
1439-
1440- (7) (8) (I) GIVE NOTICE AND HOLD A HEARING IN ACCORDA NCE
1441-WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE, FOR ANY:
1442-
1443- 1. CONTESTED CANNABIS L ICENSE OR REGISTRATION
1444-DENIAL; OR
1445-
1446- 2. VIOLATION OF THIS TI TLE OR ANY REGULATIO N
1447-ADOPTED UNDER THIS T ITLE;
1448-
1449- (II) ADMINISTER OATHS IN A PROCEEDING UNDER T HIS
1450-SECTION; AND
1451-
1452- (III) SUBJECT TO SUBSECTIO N (B)(3) OF THIS SECTION , ALLOW
1453-THE PERSON AGAINST W HOM THE ACTION IS CO NTEMPLATED TO BE REP RESENTED
1454-AT THE HEARING BY CO UNSEL;
1455-
1456- (8) (9) ADOPT REGULATIONS NE CESSARY TO CARRY OUT ITS
1457-DUTIES UNDER THIS TI TLE; AND
1458-
1459- (9) (10) PERFORM ANY OTHER PO WER AUTHORIZED OR DU TY
1460-REQUIRED UNDER THIS TITLE OR ANY OTHER P ROVISION OF STATE LAW.
1461-
1462- (B) THE DIVISION ADMINISTRATION MAY:
1463-
1464- (1) ISSUE A SUBPOENA FOR THE ATTENDANCE OF A WITNESS TO
1465-TESTIFY OR THE PRODU CTION OF EVIDENCE IN CONNECTIO N WITH:
1466-
1467- (I) ANY DISCIPLINARY ACT ION UNDER THIS TITLE ; OR
1468- WES MOORE, Governor Ch. 254
1469-
1470-– 33 –
1471- (II) ANY INVESTIGATION OR PROCEEDING INITIATED FOR AN
1472-ALLEGED VIOLATION OF THIS TITLE;
1473-
1474- (2) DELEGATE THE HEARING AUTHORITY AUTHORIZED UNDER
1475-SUBSECTION (A)(7) (A)(8) OF THIS SECTION TO AN EM PLOYEE WITHIN THE
1476-ADMINISTRATION ; AND
1477-
1478- (3) IF, AFTER DUE NOTICE , THE PERSON AGAINST W HOM A
1479-DISCIPLINARY ACTION IS CONTEMPLATED DOES NOT APPEAR AT A HEAR ING, HEAR
1480-AND DETERMINE THE MA TTER.
1481-
1482-36–203.
1483-
1484- (A) THE DIVISION ADMINISTRATION SHALL:
1485-
1486- (1) EVALUATE THE REGULATIONS ADOP TED BY THE NATALIE M.
1487-LAPRADE MEDICAL CANNABIS COMMISSION IN TITLE 10, SUBTITLE 62 OF THE
1488-CODE OF MARYLAND REGULATIONS; AND
1489-
1490- (2) ON OR BEFORE JULY 1, 2023, ADOPT EMERGENCY REGU LATIONS
1491-TO:
1492-
1493- (I) CARRY OUT THE LICENS URE REQUIREMENTS SPECIFIED
1494-UNDER THIS TITLE ;
1495-
1496- (II) IMPLEMENT PROCEDURES RELATED TO CANNABIS
1497-APPLICATIONS, LICENSES, AND REGISTRATIONS IN ACCORDANCE WITH THIS TITLE;
1498-
1499- (III) ASSIST THE COMPTROLLER IN THE CO LLECTION OF TAXES
1500-IMPOSED ON THE SALE OF ADULT–USE CANNABIS U NDER § 11–104(K) OF THE TAX –
1501-GENERAL ARTICLE;
1502-
1503- (IV) IMPLEMENT INVENTORY MANAGEMENT AND TRACK ING
1504-THAT DOES NOT DIFFER ENTIATE BETWEEN ADUL T–USE OR MEDICAL CANNA BIS OR
1505-CANNABIS PRODUCTS BE FORE THE POINT OF SA LE, EXCEPT FOR PRODUCTS
1506-ALLOWED BY THE DIVISION ADMINISTRATION FOR SALE ONLY TO PAT IENTS AND
1507-CAREGIVERS; AND
1508-
1509- (V) ESTABLISH OPERATING REQUIREMENTS FOR CAN NABIS
1510-LICENSEES OR CANNABIS REGISTRA NTS, INCLUDING REQUIREMEN TS FOR:
1511-
1512- 1. SECURITY, INCLUDING LIGHTING , PHYSICAL
1513-SECURITY, VIDEO, AND ALARM REQ UIREMENTS;
1514- Ch. 254 2023 LAWS OF MARYLAND
1515-
1516-– 34 –
1517- 2. SAFE AND SECURE DELI VERY, TRANSPORT, AND
1518-STORAGE OF CANNABIS ;
1519-
1520- 3. PREVENTING THE SALE OR DIVERSION OF CANN ABIS
1521-AND CANNABIS PRODUCT S TO PERSONS UNDER T HE AGE OF 21 YEARS; AND
1522-
1523- 4. PACKAGING AND LABELI NG OF CANNABIS AND
1524-CANNABIS PR ODUCTS, INCLUDING CHILD –RESISTANT PACKAGING ; AND
1525-
1526- 5. HEALTH AND SAFETY ST ANDARDS GOVERNING TH E
1527-CULTIVATION, MANUFACTURE , TESTING, AND DISPENSING OF CA NNABIS OR
1528-CANNABIS PRODUCTS .
1529-
1530- (B) THE EMERGENCY REGULAT IONS THAT THE DIVISION ADMINISTRATION
1531-IS REQUIRED TO ADOPT UNDER SUBSECTION (A) OF THIS SECTION SHAL L:
1532-
1533- (1) BE SUPPLEMENTAL TO T HE MEDICAL CANNABIS REGULATIONS
1534-UNDER TITLE 10, SUBTITLE 62 OF THE CODE OF MARYLAND REGULATIONS; AND
1535-
1536- (2) NOTWITHSTANDING ANY OTHER LAW, REMAIN IN EFFECT UNT IL
1537-THE TAKING EFFECT OF NON EMERGENCY REGULATION S ADOPTED UNDER
1538-SUBSECTION (C) OF THIS SECTION.
1539-
1540- (C) (1) ON OR BEFORE JULY 1, 2024, THE DIVISION ADMINISTRATION
1541-SHALL ADOPT NONEMERG ENCY REGULATIONS NECESSARY TO CARRY OUT THE
1542-PROVISIONS OF THIS TITLE.
1543-
1544- (2) TO THE EXTENT PRACTICABLE , THE DIVISION ADMINISTRATION
1545-SHALL ADOPT REGULATI ONS:
1546-
1547- (I) REQUIRING CANNABIS L ICENSEES TO TRANSITI ON FROM A
1548-CASH SYSTEM AND TO U SE TRADITIONAL BANKI NG SERVICES; AND
1549-
1550- (II) ESTABLISHING TRADE P RACTICE RESTRICTIONS .
1551-
1552- (3) THE ADMINISTRATION SHALL ADOPT REGULATIONS :
1553-
1554- (I) GOVERNING INTERNET SALES OF CAN NABIS;
1555-
1556- (II) IMPLEMENTING AND SUP PLEMENTING PACKAGING AND
1557-LABELING REQUIREMENT S FOR CANNABIS PRODU CTS UNDER § 36–203.1 OF THIS
1558-SUBTITLE;
1559- WES MOORE, Governor Ch. 254
1560-
1561-– 35 –
1562- (III) ESTABLISHING PROCEDU RES FOR THE USE OF POINT OF
1563-SALE TECHNOLOGIES BY DISPENSARIES FOR ALL TRANSACTIONS IN ORDE R TO
1564-VERIFY A CONSUMER ’S AGE USING A DRIVER ’S LICENSE OR OTHER V ALID
1565-IDENTIFICATION ISSUE D BY A GOVERNMENTAL UNIT SPECIFIED BY TH E
1566-ADMINISTRATION ; AND
1567-
1568- (IV) ESTABLISHING HEALTH, SAFETY, SECURITY, AND TRACKING
1569-REQUIREMENTS FOR THE PACKAGING AND REPACK AGING OF CANNABIS BY A
1570-DISPENSARY IN ACCORD ANCE WITH § 36–203.1 OF THIS SUBTITLE.
1571-
1572- (D) THE REGULATIONS ADOPT ED BY THE DIVISION ADMINISTRATION
1573-UNDER THIS SECTION S HALL, TO THE EXTENT PRACTICABLE , REGULATE MEDICAL
1574-AND ADULT–USE CANNABIS IN THE SAME MANNER .
1575-
1576-36–203.1.
1577-
1578- (A) THE ADMINISTRATION SHALL ADOPT REGULATIONS ES TABLISHING
1579-LIMITS ON THE MAXIMU M POTENCY OF CANNABI S PRODUCTS SOLD IN T HE STATE,
1580-INCLUDING LIMITS ON THE MAXIMUM AMOUNT OF THC IN INDIVIDUAL CANNAB IS
1581-PRODUCTS AND LIMITS ON THE MAXIMUM AGGRE GATE THC AMOUNT FOR MULTIPLE
1582-EDIBLE CANNABIS PROD UCTS PACKAGED TOGETH ER.
1583-
1584- (B) A PACKAGE OF CANNABIS FOR DISTRIBUTION TO A CONSUMER OR
1585-QUALIFYING PATIENT S HALL:
1586-
1587- (1) CONFORM TO :
1588-
1589- (I) CHILD–RESISTANT PACKAGING REQUIREMENTS
1590-ESTABLISHED UNDER 16 C.F.R. § 1700.15(B)(1); AND
1591-
1592- (II) TAMPER–EVIDENT PACKAGING ;
1593-
1594- (2) PROVIDE THAT PACKAGI NG AND LABELING SHAL L INCLUDE:
1595-
1596- (I) A FINISHED PRODUCT L OT NUMBER AND EXPIRA TION DATE
1597-IF APPLICABLE;
1598-
1599- (II) A STATEMENT:
1600-
1601- 1. THAT CONSUMPTION OF CANNABIS MAY IMPAIR YOUR
1602-ABILITY TO DRIVE A C AR OR OPERATE MACHIN ERY, USE EXTREME CAUTION ;
1603-
1604- 2. OF POTENTIAL RISKS A SSOCIATED WITH CANNA BIS
1605-USE, ESPECIALLY DURING PR EGNANCY OR BREAST FE EDING; AND Ch. 254 2023 LAWS OF MARYLAND
1606-
1607-– 36 –
1608-
1609- 3. THAT THIS PACKAGE CO NTAINS CANNABIS , KEEP OUT
1610-OF THE REACH OF CHIL DREN AND ANIMALS ;
1611-
1612- (III) THE NAME , ADDRESS, AND PHONE NUMBER OF THE
1613-DISPENSARY THAT SOLD THE PRODUCT TO REPOR T AN ADVERSE EVENT;
1614-
1615- (IV) ANY ALLERGEN WARNING REQUIRED BY LAW ;
1616-
1617- (V) A LISTING OF NONCANN ABIS INGREDIENTS ; AND
1618-
1619- (VI) AN ITEMIZATION, INCLUDING WEIGHT :
1620-
1621- 1. OF ALL CANNABINOID A ND TERPENE INGREDIEN TS
1622-SPECIFIED FOR THE PR ODUCT; AND
1623-
1624- 2. CONCENTRATIONS OF ANY CANNABINOID OF L ESS
1625-THAN 1% PRINTED WITH A LEADI NG ZERO BEFORE THE D ECIMAL POINT.
1626-
1627- (C) CANNABIS LABELING AND PACKAGING MAY NOT IN CLUDE:
1628-
1629- (1) SUBJECT TO SUBSECTIO N (D) OF THIS SECTION, ANY IMAGE THAT
1630-MAY APPEAL TO CHILDR EN INCLUDING:
1631-
1632- (I) IMAGES OF FOOD, CANDY, BAKED GOODS , CEREAL, FRUIT,
1633-AND BEVERAGES ; AND
1634-
1635- (II) A RESEMBLANCE TO THE TRADEMARKED CHARACTE RISTIC
1636-PRODUCT–SPECIALIZED PACKAGIN G OF ANY COMMERCIALL Y AVAILABLE CANDY ,
1637-SNACK, BAKED GOOD, CEREAL, OR BEVERAGE ;
1638-
1639- (2) ANY IMAGE THAT IS DE SIGNED OR LIKELY TO A PPEAL TO MINORS ,
1640-INCLUDING CARTOONS , TOYS, ANIMALS, CHILDREN, OR ANY LIKENESS TO I MAGES,
1641-CHARACTERS , OR PHRASES THAT ARE POPULARLY USED TO AD VERTISE TO
1642-CHILDREN;
1643-
1644- (3) A STATEMENT , ARTWORK, OR DESIGN THAT COULD REASONABLY
1645-MISLEAD ANY INDIVIDUAL TO BELIEVE THAT THE PACKAGING C ONTAINS ANYTHING
1646-OTHER THAN A FINISHE D CANNABIS PRODUCT ; AND
1647-
1648- (4) ANY IMAGE OF A SEAL , FLAG, CREST, COAT OF ARMS , OR OTHER
1649-INSIGNIA THAT COULD REASONABLY MISLEAD A NY INDIVIDUAL TO BEL IEVE THAT
1650-THE PRODUCT HAS BEEN ENDORSED, MANUFACTURED , OR USED BY ANY AGENC Y OF
1651-A STATE OR POLITICAL SUBDIVISION. WES MOORE, Governor Ch. 254
1652-
1653-– 37 –
1654-
1655- (D) THE ADMINISTRATION MAY AD OPT REGULATIONS TO A LLOW THE SALE ,
1656-ON OR BEFORE JULY 1, 2024, OF CANNABIS OR CANNA BIS PRODUCTS THAT AR E
1657-LABELED OR PACKAGED USING IMAGES DESC RIBED UNDER SUBSECTI ON (C)(1) OF
1658-THIS SECTION.
1659-
1660-36–204.
1661-
1662- (A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE DIVISION
1663-ADMINISTRATION SHALL ESTABLISH AND MAINTAIN A STATE CANNABIS TESTIN G
1664-LABORATORY .
1665-
1666- (2) (I) ON OR BEFORE JULY 1, 2023, THE MARYLAND
1667-DEPARTMENT OF AGRICULTURE OR THE MARYLAND DEPARTMENT OF HEALTH
1668-MAY ENTER INTO A MEM ORANDUM OF UNDERSTAN DING WITH THE DIVISION
1669-ADMINISTRATION TO TEST CANNABIS AT AN EXISTING STATE–OWNED LABORATORY
1670-IF DOING SO WOULD BE A MORE ECONOMIC AND EFFICIENT ALTERNATIVE TO THE
1671-ESTABLISHMENT OF A T ESTING LABORATORY UN DER PARAGRAPH (1) OF THIS
1672-SUBSECTION.
1673-
1674- (II) IF THE MARYLAND DEPARTMENT OF AGRICULTURE OR
1675-THE MARYLAND DEPARTMENT OF HEALTH AND THE DIVISION ADMINISTRATION
1676-DETERMINE THAT CO –LOCATING CANNABIS TE STING AT AN EXISTING
1677-STATE–OWNED LABORATORY IS NOT OPERATIONALLY FE ASIBLE, SUFFICIENT
1678-FUNDING SHALL BE PRO VIDED IN THE ANNUAL BUDGET TO COMPLY WIT H
1679-PARAGRAPH (1) OF THIS SUBSECTION .
1680-
1681- (B) THE STATE CANNABIS TESTIN G LABORATORY IS RESP ONSIBLE FOR:
1682-
1683- (1) DEVELOPING AND MAINTAIN ING A CANNABIS LABOR ATORY
1684-REFERENCE LIBRARY TH AT CONTAINS CANNABIS TESTING METHODOLOGIE S IN THE
1685-AREAS OF:
1686-
1687- (I) POTENCY;
1688-
1689- (II) HOMOGENEITY ;
1690-
1691- (III) DETECTION AND QUANTI TATION OF CONTAMINAN TS; AND
1692-
1693- (IV) SOLVENTS;
1694-
1695- (2) ESTABLISHING STANDAR D OPERATING PROCEDUR ES FOR
1696-SAMPLE COLLECTION , PREPARATION , AND ANALYSIS OF CANN ABIS BY
1697-INDEPENDENT TESTING LABORATORIES ; Ch. 254 2023 LAWS OF MARYLAND
1698-
1699-– 38 –
1700-
1701- (3) CONDUCTING PROFICIEN CY TESTING OF INDEPE NDENT TESTING
1702-LABORATORIES ;
1703-
1704- (4) REMEDIATING PROBLEMS WITH INDEPEN DENT TESTING
1705-LABORATORIES ; AND
1706-
1707- (5) CONDUCTING COMPLIANC E TESTING ON CANNABI S SAMPLES
1708-ANALYZED BY INDEPEND ENT TESTING LABORATO RIES; AND
1709-
1710- (6) IDENTIFYING AND DETE CTING THE PRESENCE A ND PURITY OF
1711-CANNABIS, ALCOHOL, AND TOBACCO IN SAMPL ES OR SEIZED CONTRAB AND IN
1712-SUPPORT OF THE REGUL ATORY AUTHORITY OF T HE COMMISSION OR
1713-ADMINISTRATION .
1714-
1715- (C) INDEPENDENT TESTING L ABORATORIES LICENSED UNDER § 36–408 OF
1716-THIS TITLE SHALL PRO VIDE MATERIALS FOR T HE CANNABIS LABORATO RY
1717-REFERENCE LIBRARY .
1718-
1719- (D) THE STATE CANNABIS TESTIN G LABORATORY SHALL H OLD MEDICAL
1720-AND ADULT–USE CANNABIS TESTING TO THE SAME STANDARD S.
1721-
1722-36–205.
1723-
1724- (A) THE DIVISION ADMINISTRATION MAY IMPOSE REGISTRATION AND
1725-OTHER FEES TO DEFRAY THE COSTS OF:
1726-
1727- (1) THE OPERATIONS OF TH E DIVISION ADMINISTRATION AND THE
1728-COMMISSION; AND
1729-
1730- (2) ADMINISTERING AND EN FORCING THIS DIVISION TITLE.
1731-
1732- (B) IF FEES ARE IMPOSED U NDER SUBSECTION (A) OF THIS SECTION , THE
1733-DIVISION ADMINISTRATION SHALL DEPOSIT THE FE ES COLLECTED IN THE
1734-CANNABIS REGULATION AND ENFORCEMENT FUND ESTABLISHED UNDE R § 36–206
1735-OF THIS SUBTITLE.
1736-
1737-36–206.
1738-
1739- (A) IN THIS SECTION , “FUND” MEANS THE CANNABIS REGULATION AND
1740-ENFORCEMENT FUND.
1741-
1742- (B) THERE IS A CANNABIS REGULATION AND ENFORCEMENT FUND.
1743- WES MOORE, Governor Ch. 254
1744-
1745-– 39 –
1746- (C) THE PURPOSE OF THE FUND IS TO PROVIDE FU NDS TO COVER THE
1747-COSTS OF:
1748-
1749- (1) THE OPERATION OF THE DIVISION AND THE COMMISSION
1750-ADMINISTRATION ; AND
1751-
1752- (2) ADMINISTERING AND EN FORCING THIS DIVISION TITLE.
1753-
1754- (D) THE COMPTROLLER SHALL ADM INISTER THE FUND AT THE DIRECTION
1755-OF THE DIVISION ADMINISTRATION .
1756-
1757- (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT
1758-SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
1759-
1760- (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY ,
1761-AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND.
1762-
1763- (F) THE FUND CONSISTS OF :
1764-
1765- (1) FEES DISTRIBUTED TO THE FUND UNDER § 36–205 OF THIS
1766-SUBTITLE;
1767-
1768- (2) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–1302.2 OF THE
1769-TAX – GENERAL ARTICLE;
1770-
1771- (3) INTEREST EARNINGS OF THE FUND; AND
1772-
1773- (4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR
1774-THE BENEFIT OF THE FUND, IN ACCORDANCE WITH A NY CONDITIONS ADOPTE D BY
1775-THE COMMISSION FOR THE AC CEPTANCE OF DONATION S OR GIFTS TO THE FUND.
1776-
1777- (G) THE FUND MAY BE USED ONLY FOR CARRYING OUT THI S DIVISION
1778-TITLE.
1779-
1780- (H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND
1781-IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED.
1782-
1783- (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO
1784-THE FUND.
1785-
1786- (I) THE FUND IS SUBJECT TO AU DIT BY THE OFFICE OF LEGISLATIVE
1787-AUDITS AS PROVIDED FO R IN § 2–1220 OF THE STATE GOVERNMENT ARTICLE.
1788- Ch. 254 2023 LAWS OF MARYLAND
1789-
1790-– 40 –
1791- (J) (1) ON OR BEFORE MARCH 15 EACH YEAR, THE COMPTROLLER
1792-SHALL PUBLISH ON ITS WEBSITE A DETAILED R EPORT ON REVENUE DI STRIBUTED
1793-TO AND EXPENDITURES FROM THE FUND.
1794-
1795- (2) THE REPORT SHALL ALSO BE SUBMITTED TO THE GENERAL
1796-ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE.
1797-
1798-SUBTITLE 3. MEDICAL USE OF CANNABIS.
1799-
1800-36–301.
1801-
1802- (A) THE DIVISION ADMINISTRATION SHALL REGISTER AS A CE RTIFYING
1803-PROVIDER AN INDIVIDU AL WHO:
1804-
1805- (1) MEETS THE REQUIREMEN TS OF THIS SUBTITLE ; AND
1806-
1807- (2) SUBMITS THE REQUIRED APPLICATION TO THE DIVISION
1808-ADMINISTRATION .
1809-
1810- (B) TO BE REGISTERED AS A CERTIFYING PROVIDER , A PROVIDER SHALL
1811-SUBMIT AN APPLICATIO N TO THE DIVISION ADMINISTRATION THAT INCLUDES :
1812-
1813- (1) THE REASONS FOR INCL UDING A PATIENT UNDE R THE CARE OF
1814-THE PROVIDER FOR THE PURPOSES OF THIS SUB TITLE, INCLUDING THE PATIENT’S
1815-QUALIFYING MEDICAL C ONDITIONS;
1816-
1817- (2) AN ATTESTATION THAT A STANDARD PATIENT E VALUATION WILL
1818-BE COMPLETED , INCLUDING A HISTORY , A PHYSICAL EXAMINATI ON, A REVIEW OF
1819-SYMPTOMS, AND OTHER RELEVANT M EDICAL INFORMATION ; AND
1820-
1821- (3) THE PROVIDER ’S PLAN FOR THE ONGOING ASSES SMENT AND
1822-FOLLOW–UP CARE OF A PATIENT AND FOR COLLECTING A ND ANALYZING DATA .
1823-
1824- (C) THE DIVISION ADMINISTRATION IS ENCOURAGED TO APP ROVE
1825-PROVIDER APPLICATION S FOR THE FOLLOWING :
1826-
1827- (1) A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL CONDITION
1828-THAT RESULTS IN A PA TIENT BEING ADMITTED INTO HOSPICE OR RECE IVING
1829-PALLIATIVE CARE ;
1830-
1831- (2) A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL CONDITION
1832-OR THE TREATMENT OF A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL
1833-CONDITION THAT PRODU CES:
1834- WES MOORE, Governor Ch. 254
1835-
1836-– 41 –
1837- (I) CACHEXIA, ANOREXIA, OR WASTING SYNDROME ;
1838-
1839- (II) SEVERE OR CHRONIC PA IN;
1840-
1841- (III) SEVERE NAUSEA ;
1842-
1843- (IV) SEIZURES; OR
1844-
1845- (V) SEVERE OR PERSISTENT MUSCLE SPASMS ;
1846-
1847- (3) GLAUCOMA ; OR
1848-
1849- (4) POST–TRAUMATIC STRESS DIS ORDER.
1850-
1851- (D) THE DIVISION ADMINISTRATION MAY NOT LIMIT TREATMENT OF A
1852-PARTICULAR MEDICAL C ONDITION TO ONE CLAS S OF PROVIDERS.
1853-
1854- (E) THE DIVISION ADMINISTRATION MAY APPROVE APPLICAT IONS THAT
1855-INCLUDE ANY OTHER CO NDITION THAT IS SEVE RE AND FOR WHICH OTH ER MEDICAL
1856-TREATMENTS HAVE BEEN INEFFECTIVE IF THE S YMPTOMS REASONABLY CAN BE
1857-EXPECTED TO BE RELIE VED BY THE MEDICAL U SE OF CANNABIS.
1858-
1859- (F) A CERTIFYING PROVIDER OR THE SPOUSE OF A C ERTIFYING PROVIDER
1860-MAY NOT:
1861-
1862- (1) RECEIVE ANY GIFT FRO M A CANNABIS LICENSE E;
1863-
1864- (2) HOLD AN OWNERSHIP IN TEREST IN A CANNABIS LICENSEE OR A
1865-BUSINESS THAT CONTRO LS A CANNABIS LICENS EE; OR
1866-
1867- (3) RECEIVE ANY COMPENSA TION FROM A CANNABIS LICENSEE.
1868-
1869- (G) A CERTIFYING PROVIDER SHALL ISSUE EACH WRI TTEN CERTIFICATION
1870-IN THE FORM REQUIRED BY THE DIVISION ADMINISTRATION .
1871-
1872- (H) A CERTIFYING PROVIDER MAY DISC USS MEDICAL CANNABIS WITH A
1873-PATIENT.
1874-
1875- (I) (1) A CERTIFYING PROVIDER REGISTRATION IS VALI D FOR 2 YEARS.
1876-
1877- (2) THE DIVISION ADMINISTRATION SHALL GRANT OR DENY A
1878-RENEWAL OF A REGISTR ATION BASED ON THE P ROVIDER’S PERFORMANCE IN
1879-COMPLYING WITH REGULATIONS ADO PTED BY THE DIVISION ADMINISTRATION .
1880- Ch. 254 2023 LAWS OF MARYLAND
1881-
1882-– 42 –
1883-36–302.
1884-
1885- (A) A QUALIFYING PATIENT O R CAREGIVER MAY OBTA IN MEDICAL
1886-CANNABIS FROM A DISP ENSARY LICENSED BY T HE DIVISION ADMINISTRATION .
1887-
1888- (B) (1) A QUALIFYING PATIENT W HO IS AT LEAST 21 YEARS OLD MAY NOT
1889-CULTIVATE MORE THAN FOUR CANNABIS PLANTS .
1890-
1891- (2) IF TWO OR MORE QUALIF YING PATIENTS WHO AR E AT LEAST 21
1892-YEARS OLD RESIDE AT THE SAME RESIDENCE , NOT MORE THAN FOUR C ANNABIS
1893-PLANTS MAY BE CULTIV ATED AT THAT RESIDEN CE.
1894-
1895- (3) EXCEPT AS PROVIDED IN PARAGRAPHS (1) AND (2) OF THIS
1896-SUBSECTION, A QUALIFYING PATIENT SHALL COMPLY WITH TH E CANNABIS
1897-CULTIVATION REQUIREM ENTS ESTABLISHED UND ER § 5–601.2 OF THE CRIMINAL
1898-LAW ARTICLE.
1899-
1900- (C) A QUALIFYING PATIENT U NDER THE AGE OF 18 YEARS MAY OBTAIN
1901-MEDICAL CANNABIS ONL Y THROUGH:
1902-
1903- (1) THE QUALIFYING PATIE NT’S CAREGIVER; OR
1904-
1905- (2) ANY DESIGNATED SCHOO L PERSONNEL AUTHORIZ ED TO
1906-ADMINISTER MEDICAL C ANNABIS TO A STUDENT IN ACCORDANCE WITH T HE
1907-GUIDELINES ESTABLISH ED UNDER § 7–446 OF THE EDUCATION ARTICLE.
1908-
1909- (D) A CAREGIVER MAY SERVE NOT MORE THAN FIVE Q UALIFYING PATIENTS
1910-AT ANY TIME.
1911-
1912- (E) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A
1913-QUALIFYING PATIENT M AY HAVE NOT MORE THA N TWO CAREGIVERS .
1914-
1915- (2) A QUALIFYING PATIENT U NDER THE AG E OF 18 YEARS MAY HAVE
1916-NOT MORE THAN FOUR C AREGIVERS.
1917-
1918- (F) A SALE OF CANNABIS OR CANNABIS PRODUCTS TO A QUALIFYING
1919-PATIENT IS NOT SUBJE CT TO TAXES IMPOSED ON THE SALE OF CANNA BIS OR
1920-CANNABIS PRODUCTS UN DER § 11–104(K) OF THE TAX – GENERAL ARTICLE.
1921-
1922- (G) A QUALIFYING PATIENT M AY POSSESS UP TO :
1923-
1924- (1) 120 GRAMS OF USABLE CANN ABIS; OR
1925- WES MOORE, Governor Ch. 254
1926-
1927-– 43 –
1928- (2) 36 GRAMS OF DELTA –9–TETRAHYDROCANNABINOL (THC) IN THE
1929-CASE OF A CANNABIS –INFUSED PRODUCT .
1930-
1931- (H) DESIGNATED SCHOOL PER SONNEL DESCRIBED IN SUBSECTION (C)(2)
1932-OF THIS SECTION:
1933-
1934- (1) MAY ADMINISTER TO A STUDENT ONLY MEDICAL CANNABIS:
1935-
1936- (I) THAT IS OBTAINED THR OUGH THE STUDENT ’S CAREGIVER;
1937-AND
1938-
1939- (II) IN ACCORDANCE WITH D OSING, TIMING, AND DELIVERY
1940-ROUTE INSTRUCTIONS A S PROVIDED BY THE CE RTIFYING PROVIDER ’S WRITTEN
1941-INSTRUCTIONS ; AND
1942-
1943- (2) ARE NOT REQUIRED TO REGISTER WITH THE COMMISSION
1944-ADMINISTRATION UNDER THIS SUBTITLE .
1945-
1946- (I) A CAREGIVER MAY ADMINI STER MEDICAL CANNABI S TO A STUDENT
1947-WHO IS A QUALIFYING PATIENT OF THE CAREG IVER ON SCHOOL PROPE RTY, DURING
1948-SCHOOL–SPONSORED ACTIVITIES , AND WHILE ON A SCHOO L BUS.
1949-
1950-SUBTITLE 4. CANNABIS LICENSING.
1951-
1952-36–401.
1953-
1954- (A) (1) A PERSON MUST OBTAIN A CANNABIS LICENSE ISS UED BY THE
1955-DIVISION ADMINISTRATION TO OPERATE A CANNABI S BUSINESS.
1956-
1957- (2) A CANNABIS LICENSE ISS UED UNDER THIS SUBT ITLE:
1958-
1959- (I) AUTHORIZES THE HOLDE R OF THE LICENSE TO OPERATE A
1960-MEDICAL AND ADULT –USE CANNABIS BUSINES S;
1961-
1962- (II) IS VALID FOR 5 YEARS ON INITIAL LIC ENSURE AND 5 YEARS
1963-ON RENEWAL ; AND
1964-
1965- (III) MAY BE TRANSFERRED O NLY IN ACCORDANCE WI TH
1966-SUBTITLE 5 OF THIS TITLE.
1967-
1968- (B) (1) THE DIVISION ADMINISTRATION SHALL:
1969- Ch. 254 2023 LAWS OF MARYLAND
1970-
1971-– 44 –
1972- (I) ISSUE STANDARD LICEN SES, MICRO LICENSES , INCUBATOR
1973-SPACE LICENSES , AND ON–SITE CONSUMPTION LIC ENSES IN ACCORDANCE WITH
1974-THIS TITLE;
1975-
1976- (II) ON OR BEFORE JULY 1, 2023, CONVERT LICENSES THA T
1977-WERE ISSUED TO MEDICAL CA NNABIS GROWERS , PROCESSORS , AND DISPENSARIES ,
1978-INCLUDING THOSE BUSI NESSES PREAPPROVED F OR LICENSURE , TO LICENSES TO
1979-OPERATE A MEDICAL AN D ADULT–USE CANNABIS BUSINES S IF:
1980-
1981- 1. A CONVERSION FEE IS PAID IN ACCORDANCE W ITH §
1982-36–403 OF THIS SUBTITLE; AND
1983-
1984- 2. THE BUSINESS COMPLIE S WITH THE OWNERSHIP
1985-RESTRICTIONS UNDER S UBSECTION (E) OF THIS SECTION;
1986-
1987- (III) SET PRODUCTION , PROCESSING, SALES, AND OTHER
1988-LIMITATIONS AND REQU IREMENTS FOR ALL LIC ENSE TYPES;
1989-
1990- (IV) ISSUE DISPENSARY LIC ENSES IN A MANNER TH AT
1991-ENCOURAGES A BALANCE D GEOGRAPHIC DISTRIB UTION BASED ON POPUL ATION
1992-AND MARKET DEMAND WI THIN A SPECIFIC COUN TY, AS WELL AS
1993-CROSS–JURISDICTIONAL MARKE T DEMAND; AND
1994-
1995- (V) CONSIDER MARKET DEMA ND IN THE ISSUANCE O F ALL
1996-LICENSE TYPES; AND
1997-
1998- (VI) (V) ADOPT REGULATIONS RE QUIRING LICENSEES WH OSE
1999-LICENSES WERE CONVER TED BY THE DIVISION ADMINISTRATION UNDER ITEM (II)
2000-OF THIS PARAGRAPH TO RESERVE A SPECIFIED AMOUNT OF CANNABIS F OR SOCIAL
2001-EQUITY LICENSEES .
2002-
2003- (2) THE DIVISION ADMINISTRATION MAY:
2004-
2005- (I) INSPECT A CANNABIS L ICENSEE TO ENSURE CO MPLIANCE
2006-WITH THIS TITLE AND THE REGULATIONS ADOP TED UNDER THIS TITLE ;
2007-
2008- (II) REVOKE A CANNABIS LI CENSE IF GOOD FAITH EFFORTS
2009-HAVE NOT BEEN MADE B Y THE CANNABIS LICEN SEE TO ESTABLISH A C ANNABIS
2010-BUSINESS WITHIN 18 MONTHS AFTER THE LIC ENSE WAS AWARDED ;
2011-
2012- (III) IMPOSE PENALTIES OR RESCIND THE LICENSE OF A
2013-CANNABIS LICENSEE TH AT DOES NOT MEET THE STANDARDS FOR LICENS URE WES MOORE, Governor Ch. 254
2014-
2015-– 45 –
2016-ESTABLISHED UNDER TH IS TITLE OR REGULATI ONS ADOPTED UNDER TH IS TITLE;
2017-AND
2018-
2019- (IV) CONDITIONALLY AWARD CAN NABIS LICENSES.
2020-
2021- (C) (1) A STANDARD LICENSE AUT HORIZES THE HOLDER O F THE
2022-LICENSE:
2023-
2024- (I) FOR GROWERS , TO OPERATE MORE THAN 10,000 SQUARE
2025-FEET, BUT NOT MORE THAN 300,000 SQUARE FEET , OF INDOOR CANOPY OR ITS
2026-EQUIVALENT, AS CALCULATED BY THE DIVISION ADMINISTRATION ;
2027-
2028- (II) FOR PROCESSORS , TO PROCESS MORE THAN 1,000 POUNDS
2029-OF CANNABIS PER YEAR , AS CALCULATED BY THE DIVISION ADMINISTRATION ; AND
2030-
2031- (III) FOR DISPENSARIES , TO OPERATE A STORE A T A PHYSICAL
2032-LOCATION THAT SELLS CANNABIS OR CANNABIS PRODUCTS .
2033-
2034- (2) A MICRO LICENSE AUTHOR IZES THE HOLDER OF T HE LICENSE:
2035-
2036- (I) FOR GROWERS , TO OPERATE NOT MORE THAN 10,000
2037-SQUARE FEET OF INDOO R CANOPY OR ITS EQUI VALENT, AS CALCULATED BY THE
2038-DIVISION ADMINISTRATION ;
2039-
2040- (II) FOR PROCESSORS , TO PROCESS NOT MORE THAN 1,000
2041-POUNDS OF CANNABIS P ER YEAR, AS CALCULATED BY THE DIVISION
2042-ADMINISTRATION ; AND
2043-
2044- (III) FOR DISPENSARIES , TO OPERATE A DELIVER Y SERVICE
2045-THAT SELLS CANNABIS OR CANNABIS PRODUCTS WITHOUT A PHYSICAL
2046-STOREFRONT , PROVIDED THAT THE LICENSEE EMPLOYS NOT MORE THAN 10
2047-EMPLOYEES.
2048-
2049- (3) AN INCUBATOR SPACE LI CENSE AUTHORIZES THE HOLDER OF
2050-THE LICENSE TO OPERA TE A FACILITY WITHIN WHICH A MICRO LICENS EE MAY
2051-OPERATE IN ACCORDANC E WITH § 36–406 OF THIS SUBTITLE.
2052-
2053- (4) AN ON–SITE CONSUMPTION LICENSE AUTHORIZES T HE HOLDER
2054-OF THE LICENSE TO OP ERATE A FACILITY IN ON THE PREMISES OF WHICH
2055-INDIVIDUALS CAN SMOK E OUTDOORS, VAPE, OR CONSUME CANNABIS IN
2056-ACCORDANCE WITH § 36–407 OF THIS SUBTITLE.
2057- Ch. 254 2023 LAWS OF MARYLAND
2058-
2059-– 46 –
2060-(D) THE DIVISION ADMINISTRATION MAY NOT ISSUE MORE T HAN THE
2061-FOLLOWING NUMBER OF LICENSES PER TYPE , INCLUDING LICENSES C ONVERTED
2062-UNDER SUBSECTION (B)(1)(II) OF THIS SECTION:
2063-
2064- (1) FOR STANDARD LICENSE S:
2065-
2066- (I) 75 GROWER LICENSES ;
2067-
2068- (II) 100 PROCESSOR LICENSES ; AND
2069-
2070- (III) 300 DISPENSARY LICENSES ;
2071-
2072- (2) FOR MICRO LICENSES :
2073-
2074- (I) 100 GROWER LICENSES ;
2075-
2076- (II) 100 PROCESSOR LICENSES ; AND
2077-
2078- (III) 200 10 DISPENSARY LICENSES ;
2079-
2080- (3) FOR INCUBATOR SPACE LICENSES, 10 LICENSES; AND
2081-
2082- (4) FOR ON–SITE CONSUMPTION LIC ENSES, 50 LICENSES.
2083-
2084- (E) (1) THIS SUBSECTION APPLIES T O ALL LICENSES , INCLUDING
2085-LICENSES CONVERTED U NDER SUBSECTION (B)(1)(II) OF THIS SECTION.
2086-
2087- (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , A PERSON
2088-MAY HAVE AN OWNERSHI P INTEREST IN OR CON TROL OF, INCLUDING THE POWER TO
2089-MANAGE AND OP ERATE, ONLY:
2090-
2091- (I) FOR STANDARD LICENSE S AND MICRO LICENSES :
2092-
2093- 1. ONE GROWER LICENSEE ;
2094-
2095- 2. ONE PROCESSOR LICENS EE; AND
2096-
2097- 3. NOT MORE THAN TWO FOUR DISPENSARY LICENSEES ;
2098-
2099- (II) FOR INCUBATOR SPACE LICENSES, NOT MORE THAN TWO
2100-LICENSEES; AND
2101-
2102- (III) FOR ON–SITE CONSUMPTION LIC ENSES, NOT MORE THAN
2103-TWO LICENSEES . WES MOORE, Governor Ch. 254
2104-
2105-– 47 –
2106-
2107- (3) (I) A PERSON WHO OWNS OR C ONTROLS AN INCUBATOR SPACE
2108-LICENSEE OR AN ON –SITE CONSUMPTION LIC ENSEE MAY NOT OWN OR CONTROL ANY
2109-OTHER CANNABIS LICEN SEE.
2110-
2111- (II) THE DIVISION ADMINISTRATION SHALL ADOPT
2112-REGULATIONS LIMITING A PERSON OR FUND FRO M ACQUIRING A NONMAJ ORITY
2113-OWNERSHIP INTEREST I N MULTIPLE CANNABIS BUSINESSES BEYOND TH E
2114-LIMITATIONS ESTABLIS HED UNDER THIS SUBSE CTION.
2115-
2116- (4) THE RESTRICTIONS IN P ARAGRAPH (2) OF THIS SUBSECTION DO
2117-NOT APPLY TO A PERSO N OR AN ENTITY WHO H OLDS AN OWNERSHIP IN TEREST ONLY
2118-AS A PASSIVE INVESTO R.
2119-
2120- (F) (1) THE HOLDER OF A CANNA BIS LICENSE MAY NOT SURRENDER THE
2121-LICENSE AND APPLY FO R A NEW LICENSE IN T HE SAME OR A SIMILAR CATEGORY.
2122-
2123- (2) THE LIMITATION UNDER PARAGRAPH (1) OF THIS SUBSECTION
2124-APPLIES TO:
2125-
2126- (I) AFFILIATES, HOLDING COMPANIES , PARENT COMPANIES ,
2127-OR OTHER RELATED ENT ITIES;
2128-
2129- (II) INDIVIDUALS AND FIRM S WITH IDENTICAL OR
2130-SUBSTANTIALLY IDENTI CAL BUSINESS OR ECON OMIC INTERESTS ;
2131-
2132- (III) PERSONS WITH COMMON INVES TMENTS; AND
2133-
2134- (IV) FIRMS THAT ARE ECONO MICALLY DEPENDENT ON EACH
2135-OTHER THROUGH CONTRA CTUAL OR OTHER RELAT IONSHIPS.
2136-
2137- (G) A LICENSE ISSUED UNDER THIS TITLE:
2138-
2139- (1) IS NOT PROPERTY AND DOES NOT CONFER PROP ERTY RIGHTS;
2140-AND
2141-
2142- (2) IS SUBJECT TO:
2143-
2144- (I) SUSPENSION, REVOCATION , AND RESTRICTIONS
2145-AUTHORIZED BY LAW ; AND
2146-
2147- (II) REGULATIONS AUTHORIZ ED UNDER THIS ARTICL E.
2148- Ch. 254 2023 LAWS OF MARYLAND
2149-
2150-– 48 –
2151- (H) (1) ON AND AFTER JULY 1, 2023, THE HOLDER OF A LICE NSE ISSUED
2152-BY THE NATALIE M. LAPRADE MEDICAL CANNABIS COMMISSION WHO DOES NOT
2153-CONVERT THE LICENSE :
2154-
2155- (I) MAY NOT:
2156-
2157- 1. OPERATE UNDER THE LI CENSE; OR
2158-
2159- 2. RENEW THE LICENSE ; BUT
2160-
2161- (II) MAY CONTINUE TO HOLD THE LICENSE FOR RESA LE TO
2162-ANOTHER PERSON FOR C ONVERSION UNDER THIS SUBTITLE.
2163-
2164- (2) THE PURCHASER OF A LI CENSE SOLD BY A LICEN SE HOLDER WHO
2165-DOES NOT CONVERT A L ICENSE UNDER PARAGRA PH (1) OF THIS SUBSECTION I S
2166-RESPONSIBLE FOR PAYI NG THE ONE–TIME CONVERSION FEE UNDER § 36–403 OF
2167-THIS SUBTITLE.
2168-
2169- (G) NOTWITHSTANDING ANY P ROVISIONS OF THIS TI TLE, THE HOLDER OF A
2170-DISPENSARY LICENSE I SSUED BY THE NATALIE M. LAPRADE MEDICAL CANNABIS
2171-COMMISSION WHO CONVER TS THE LICENSE OR A REGISTRANT WITH THE NATALIE
2172-M. LAPRADE MEDICAL CANNABIS COMMISSION MAY CONTIN UE TO DELIVER
2173-MEDICAL CANNABIS UNT IL JULY 1, 2024.
2174-
2175- (H) A LICENSE ISSUED UNDER THIS TI TLE:
2176-
2177- (1) IS NOT PROPERTY AND DOES NOT CONFER PROP ERTY RIGHTS; AND
2178-
2179- (2) IS SUBJECT TO:
2180-
2181- (I) SUSPENSION, REVOCATION, AND RESTRICTIONS
2182-AUTHORIZED BY LAW ; AND
2183-
2184- (II) REGULATIONS AUTHORIZ ED UNDER THIS ARTICL E.
2185-
2186- (I) (1) ON AND AFTER JULY 1, 2023, THE HOLDER OF A LICE NSE ISSUED
2187-BY THE NATALIE M. LAPRADE MEDICAL CANNABIS COMMISSION WHO DOES N OT
2188-CONVERT THE LICENSE :
2189-
2190- (I) MAY NOT:
2191-
2192- 1. OPERATE UNDER THE LI CENSE; OR
2193-
2194- 2. RENEW THE LICENSE ; BUT WES MOORE, Governor Ch. 254
2195-
2196-– 49 –
2197-
2198- (II) MAY CONTINUE TO HOLD THE LICENSE FOR RESAL E TO
2199-ANOTHER PERSON FOR C ONVERSION UNDER THIS SUBTITLE.
2200-
2201- (2) THE PURCHASER OF A LI CENSE SOLD BY A LICE NSE HOLDER WHO
2202-DOES NOT CONVERT A L ICENSE UNDER PARAGRA PH (1) OF THIS SUBSECTION I S
2203-RESPONSIBLE FOR PAYI NG THE ONE–TIME CONVERSION F EE UNDER § 36–403 OF
2204-THIS SUBTITLE.
2205-
2206-36–402.
2207-
2208- (A) IT IS THE INTENT OF T HE GENERAL ASSEMBLY TO PRESERVE
2209-PRODUCTION AVAILABIL ITY FOR NEW ADULT –USE CANNABIS CULTIVA TION
2210-LICENSES ISSUED UNDE R THIS SUBTITLE.
2211-
2212- (B) (1) IF THE LICENSE OF A C ANNABIS LICENSEE IS CONVERTED BY THE
2213-DIVISION ADMINISTRATION UNDER § 36–401(B)(1)(II) OF THIS SUBTITLE , THE
2214-CANNABIS LICENSEE SH ALL:
2215-
2216- (I) IF THE LICENSEE IS A GROWER, ADHERE TO THE EXPANS ION
2217-LIMITATIONS SPECIFIE D UNDER PARAGRAPH (2) OF THIS SUBSECTION ; AND
2218-
2219- (II) PAY THE CONVERSION F EE REQUIRED UNDER § 36–403 OF
2220-THIS SUBTITLE.
2221-
2222- (2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
2223-PARAGRAPH AND SUBJECT TO SUBPA RAGRAPH (III) OF THIS PARAGRAPH , ON OR
2224-BEFORE JANUARY 1, 2026, AN OPERATIONAL BUSINESS T HAT HOLDS A GROWER
2225-LICENSE ISSUED BEFOR E OCTOBER 1, 2022 DECEMBER 31, 2022, MAY EXPAND THE
2226-CANOPY OF ITS OPERAT IONS AS IT EXISTED O N OCTOBER 1, 2022 DECEMBER 31,
2227-2022, AND BASED ON FACILIT Y SQUARE FOOTAGE OF INDOOR CANOPY SPACE OR ITS
2228-EQUIVALENT, AS CALCULATED BY THE DIVISION ADMINISTRATION IN ACCORDANCE
2229-WITH SUBSECTION (D) OF THIS SECTION, ONLY AS FOLLOWS :
2230-
2231- 1. IF THE CANOPY IS UND ER 25,000 SQUARE FEET , TO
2232-25,000 SQUARE FEET OR BY 25% 20%, WHICHEVER IS GREATER ;
2233-
2234- 2. IF THE CANOPY IS AT OR ABOVE 25,000 SQUARE FEET,
2235-BY 25% 20%; OR
2236-
2237- 3. IF THE CANNABIS LICE NSEE HAS A SQUARE FO OTAGE
2238-EXPANSION THAT WAS P REAPPROVED BEFORE OCTOBER 1, 2022 DECEMBER 31,
2239-2022, THE PREAPPROVED EXPA NSION OR 25% 20%, WHICHEVER IS GREATER .
2240- Ch. 254 2023 LAWS OF MARYLAND
2241-
2242-– 50 –
2243- (II) IF THE DIVISION ADMINISTRATION AND AN OPERATIONAL
2244-BUSINESS DESCRIBED U NDER SUBPARAGRAPH (I) OF THIS PARAGRAPH AR E UNABLE
2245-TO AGREE AS TO THE S QUARE FOOTAGE OF THE CANOPY EXPANSION OF THE
2246-LICENSEE’S OPERATIONS AUTHORIZE D UNDER SUBPARAGRAPH (I) OF THIS
2247-PARAGRAPH , THE SQUARE FOOTAGE OF THE CANOPY EXPANSION SHALL BE
2248-CALCULATED BASED ON THE LICENSEE ’S AVERAGE CANNABIS P RODUCTION IN
2249-CALENDAR YEARS 2021 AND 2022.
2250-
2251- (III) AN OPERATIONAL BUSINE SS DESCRIBED UNDER
2252-SUBPARAGRAPH (I) OF THIS PARAGRAPH MA Y BEGIN TO EXPAND IT S CANOPY OF
2253-OPERATIONS:
2254-
2255- 1. BY NOT MORE THAN 50% OF THE TOTAL SQUARE
2256-FOOTAGE AUTHORIZED U NDER SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH ON
2257-OR AFTER JANUARY 1, 2024; AND
2258-
2259- 2. FOR THE REMAINING TO TAL SQUARE FOOTAGE
2260-AUTHORIZED UNDER SUB PARAGRAPH (I) OR (II) OF THIS PARAGRAPH ON OR AFTER
2261-MAY 1, 2024.
2262-
2263- (IV) A GROWER LICENSEE MAY NOT OPERATE AN INDOO R
2264-CANOPY THAT EXCEEDS 300,000 SQUARE FEET OR ITS E QUIVALENT, AS
2265-CALCULATED BY THE DIVISION ADMINISTRATION IN ACCORDANCE WITH
2266-SUBSECTION (D) OF THIS SECTION, IF THE GROWER LICENSE E:
2267-
2268- 1. HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE
2269-BEFORE OCTOBER 1, 2022; AND
2270-
2271- 2. WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022.
2272-
2273- (C) A BUSINESS THAT IS ISS UED A NEW CANNABIS L ICENSE UNDER § 36–401
2274-OF THIS SUBTITLE MAY NOT OPERATE AN INDOO R CANOPY THAT EXCEED S 300,000
2275-SQUARE FEET FOR INDO OR CANOPIES OR ITS E QUIVALENT, AS CALCULATED BY THE
2276-DIVISION ADMINISTRATION .
2277-
2278- (D) (1) (I) THIS PARAGRAPH APPLIES TO ALL LICENSED GROWERS .
2279-
2280- (II) A LICENSED GROWER SHAL L ACCURATELY CALCULA TE AND
2281-REPORT ANNUALLY TO THE DIVISION ADMINISTRATION ITS FLOWERING CANNAB IS
2282-PLANT CANOPY AREA .
2283-
2284- (III) THE CANOPY AREA IS ME ASURED USING THE OUTSIDE
2285-BOUNDARIES OF A NY AREA THAT INCLUDE S FLOWERING CANNABIS PLANTS AND ALL WES MOORE, Governor Ch. 254
2286-
2287-– 51 –
2288-OF THE SPACE WITHIN THE BOUNDARIES IN ACCORDANCE WITH T HE DEFINITION OF
2289-“CANOPY” ESTABLISHED UNDER § 36–101 OF THIS TITLE.
2290-
2291- (IV) FOR THE PURPOSE OF ME ASURING CANOPY , 1 SQUARE
2292-FOOT OF INDOOR CANOP Y IS EQUAL TO 4 SQUARE FEET OF OUTDO OR CANOPY.
2293-
2294- (V) THE MAXIMUM AMOUNT OF SPACE FOR CANNABIS
2295-PRODUCTION MAY NOT E XCEED THE CANOPY AUT HORIZED UNDER THIS S ECTION.
2296-
2297- (VI) IF THE AMOUNT OF SQUA RE FEET OF PRODUCTIO N FOR A
2298-LICENSED GROWER EXCE EDS THE CANOPY AUTHORIZED UNDER THI S SECTION AND
2299-§ 36–401 OF THIS SUBTITLE, THE COMMISSION MAY :
2300-
2301- 1. REDUCE THE CANOPY OF THE LICENSED GROWER BY
2302-THE SAME PERCENTAGE AS IT EXCEEDS THE AU THORIZED CANOPY ; AND
2303-
2304- 2. SEIZE, DESTROY, CONFISCATE, OR PLACE AN
2305-ADMINISTRATIVE HOLD ON ANY FLOWERIN G CANNABIS PLANTS PR ODUCED IN
2306-EXCESS OF THE CANOPY .
2307-
2308- (VII) THE ADMINISTRATION SHALL ANNUALLY REPORT TO T HE
2309-GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT
2310-ARTICLE, THE AMOUNT OF CANOPY AREA REPORTED TO THE ADMINISTRATION BY
2311-LICENSED GROWERS UND ER ITEM (II) OF THIS PARAGRAPH .
2312-
2313- (2) THE MAXIMUM AMOUNT OF CANOPY FOR AN OPERAT IONAL
2314-BUSINESS THAT HOLDS A LICENSE ISSUED BEF ORE OCTOBER 1, 2022, SHALL BE
2315-CALCULATED BASED ON THE MAXIMUM CANOPY O F THE LICENSEE AS
2316-SELF–REPORTED BY THE LICE NSEE AND RECORDED BY THE DIVISION NATALIE M.
2317-LAPRADE MEDICAL CANNABIS COMMISSION ON OR BEFORE DECEMBER 1, 2022.
2318-
2319- (E) (1) ON OR BEFORE JULY 1, 2024, THE DIVISION ADMINISTRATION
2320-SHALL ADOPT MINIMUM STANDARDS FOR LICENS ED GROWERS TO PROTECT THE
2321-RIGHTS OF THE GROWER S AND EMPLOYEES CONC ERNING GRIEVANCES , LABOR
2322-DISPUTES, WAGES, RATES OF PAY, HOURS, OR OTHER TERMS OR CO NDITIONS OF
2323-EMPLOYMENT .
2324-
2325- (2) THE STANDARDS SHALL , AT A MINIMUM , PROTECT THE STATE’S
2326-INTERESTS BY PROHIBI TING A LABOR OR GANIZATION FROM ENGA GING IN
2327-PICKETING, WORK STOPPAGES , BOYCOTTS, OR ANY OTHER ECONOMI C
2328-INTERFERENCE WITH TH E OPERATION OF THE L ICENSED GROWER .
2329-
2330- (3) AS A CONDITION OF LIC ENSURE, THE LICENSED GROWER SHALL:
2331- Ch. 254 2023 LAWS OF MARYLAND
2332-
2333-– 52 –
2334- (I) COMPLY WITH THE STAN DARDS ADOPTED UNDER
2335-PARAGRAPH (1) OF THIS SUBSECTION ; AND
2336-
2337- (II) NEGOTIATE IN GOOD FA ITH WITH EMPLOYEES A ND ANY
2338-LEGITIMATE LABOR ORG ANIZATION RECOGNIZED BY THE DIVISION
2339-ADMINISTRATION .
2340-
2341-36–403.
2342-
2343- (A) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT HOLDS A
2344-CANNABIS LICENS E AND WAS PHYSICALLY AND ACTIVELY ENGAGED IN THE
2345-CULTIVATION OR PROCE SSING OF MEDICAL CAN NABIS BEFORE OCTOBER 1, 2022.
2346-
2347- (2) EACH SUBJECT TO SUBSECTION (F) OF THIS SECTION , EACH
2348-GROWER OR PROCESSOR SHALL PAY THE FOLLOW ING ONE–TIME CONVERSION FEE
2349-BASED ON THE TOTAL GROSS REVE NUE OF THE GROWER OR PROCESSOR IN 2022:
2350-
2351- (I) $100,000 IF THE GROSS REVENUE WAS LESS THAN
2352-$1,000,000;
2353-
2354- (II) $500,000 IF THE GROSS REVENUE WAS AT LEAST
2355-$1,000,000, BUT NOT MORE THAN $5,000,000;
2356-
2357- (III) $1,000,000 IF THE GROSS REVENUE WAS MORE THA N
2358-$5,000,000, BUT NOT MORE THAN $10,000,000;
2359-
2360- (IV) $1,500,000 IF THE GROSS REVENUE WAS MORE THAN
2361-$10,000,000, BUT NOT MORE THAN $15,000,000;
2362-
2363- (V) $2,000,000 IF THE GROSS REVENUE WAS MORE THAN
2364-$15,000,000, BUT NOT MORE THAN $20,000,000; OR
2365-
2366- (VI) $2,500,000 IF THE GROSS REVENUE WAS MORE THAN
2367-$20,000,000.
2368-
2369- (2) (I) SUBJECT TO SUBSECTION (E) OF THIS SECTION AND EXCEPT
2370-AS PROVIDED IN SUBPA RAGRAPH (II) OF THIS PARAGRAPH :
2371-
2372- 1. EACH GROWER AND PROC ESSOR SHALL PAY A
2373-ONE–TIME CONVERSION FEE OF 10% OF THE TOTAL GROSS R EVENUE OF THE
2374-GROWER OR PROCESSOR IN 2022, BUT NOT MORE THAN $2,000,000; AND
2375- WES MOORE, Governor Ch. 254
2376-
2377-– 53 –
2378- 2. EACH DISPENSARY SHAL L PAY A ONE –TIME
2379-CONVERSION FEE OF 8% OF THE TOTAL GROSS R EVENUE OF THE DISPEN SARY IN
2380-2022, BUT NOT MORE THAN $2,000,000.
2381-
2382- (II) THE AMOUNT OF THE CON VERSION FEES IN SUBP ARAGRAPH
2383-(I) OF THIS PARAGRAPH MA Y NOT BE LESS THAN $100,000.
2384-
2385- (3) IF A BUSINESS HOLDS A GROWER AND PROCESSOR LICENSE, THE
2386-FEE SHALL BE BASED O N TOTAL GROSS REVENU E FROM BOTH LICENSE TYPES.
2387-
2388- (B) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT HOLDS A
2389-CANNABIS LICENSE AND WAS PHYSICALLY AND A CTIVELY ENGAGED IN T HE
2390-DISPENSING OF MEDICA L CANNABIS BEFORE OCTOBER 1, 2022.
2391-
2392- (2) EACH SUBJECT TO SUBSECTION (F) OF THIS SECTION , EACH
2393-DISPENSARY SHALL PAY THE FOLLOW ING ONE–TIME CONVERSION FEE BASED ON
2394-THE GROSS REVENUE OF THE DISPENSARY IN 2022:
2395-
2396- (I) $100,000 IF THE GROSS REVENUE WAS LESS THAN
2397-$1,000,000;
2398-
2399- (II) $250,000 IF THE GROSS REVENUE WAS AT LEAST
2400-$1,000,000, BUT NOT MORE THAN $5,000,000;
2401-
2402- (III) $500,000 IF THE GROSS REVENUE WAS MORE THAN
2403-$5,000,000, BUT NOT MORE THAN $10,000,000;
2404-
2405- (IV) $1,000,000 IF THE GROSS REVENUE WAS MORE THAN
2406-$10,000,000, BUT NOT MORE THAN $15,000,000;
2407-
2408- (V) $1,500,000 IF THE GROSS REVENUE WAS MORE THAN
2409-$15,000,000, BUT NOT MORE THAN $20,000,000; OR
2410-
2411- (VI) $2,000,000 IF THE GROSS REVENUE WAS MORE THAN
2412-$20,000,000.
2413-
2414- (C) (B) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT:
2415-
2416- (I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE
2417-OCTOBER 1, 2022; AND
2418-
2419- (II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022.
2420- Ch. 254 2023 LAWS OF MARYLAND
2421-
2422-– 54 –
2423- (2) A SUBJECT TO SUBSECTION (F) (E) OF THIS SECTION, A GROWER
2424-OR PROCESSOR SHALL P AY A ONE–TIME CONVERSION FEE OF $50,000.
2425-
2426- (3) A SUBJECT TO SUBSECTION (F) (E) OF THIS SECTION , A
2427-DISPENSAR Y SHALL PAY A ONE –TIME CONVERSION FEE OF $25,000.
2428-
2429- (D) (C) (1) THIS SUBSECTION APPLI ES ONLY TO AN APPLIC ANT
2430-APPLYING FOR A CANNA BIS LICENSE UNDER § 36–404 OF THIS SUBTITLE.
2431-
2432- (2) AN APPLICANT FOR A ST ANDARD LICENSE , AN INCUBATOR SPACE
2433-LICENSE, OR AN ON–SITE CONSUMPTION LIC ENSE SHALL PAY AN AP PLICATION FEE
2434-OF $5,000.
2435-
2436- (3) AN APPLICANT FOR A MI CRO LICENSE SHALL PA Y AN
2437-APPLICATION FEE OF $1,000.
2438-
2439- (E) (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE
2440-DIVISION PARAGRAPHS (2) AND (3) OF THIS SUBSECTION, THE ADMINISTRATION
2441-SHALL ESTABLISH LICENSING AND RENEWAL FEES FOR ALL CANNABIS LICENSES .
2442-
2443- (2) THE RENEWAL FEES ESTA BLISHED UNDER PARAGR APH (1) OF
2444-THIS SUBSECTION MAY NOT EXCEED 10% OF THE CANNABIS LICE NSEE’S ANNUAL
2445-GROSS REVENUE .
2446-
2447- (2) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION ,
2448-THE LICENSING AND RE NEWAL FEES ESTABLISH ED UNDER PARAGRAPH (1) OF THIS
2449-SUBSECTION FOR STAND ARD CANNABIS LICENSE ES MAY NOT EXCEED :
2450-
2451- (I) FOR INITIAL LICENSE FEES, $50,000; AND
2452-
2453- (II) FOR RENEWAL LI CENSE FEES, THE LESSER OF 10% OF THE
2454-STANDARD CANNABIS LI CENSEE’S ANNUAL GROSS REVEN UE OR $50,000.
2455-
2456- (3) THE ADMINISTRATION SHALL REDUCE LICENSING AND RENEWAL
2457-FEES BY AT LEAST 50% FOR SOCIAL EQUITY LI CENSES, MICRO LICENSES , INCUBATOR
2458-SPACE LICENSES , AND ON–SITE CONSUMPTION LIC ENSES.
2459-
2460- (F) (E) (1) THE ONE–TIME CONVERSION FEES UNDER THIS SECTION :
2461-
2462- (I) MAY BE PAID IN SEPAR ATE INSTALLMENTS ; AND
2463-
2464- (II) SHALL BE PAID IN FUL L ON OR BEFORE JANUARY 1, 2025.
2465- WES MOORE, Governor Ch. 254
2466-
2467-– 55 –
2468- (2) THE AMOUNT OF ANY LICENSING OR RENEWAL FEE PAID BY A
2469-BUSINESS FOR FISCAL YEAR 2023 TO THE NATALIE M. LAPRADE MEDICAL
2470-CANNABIS COMMISSION SHALL BE C REDITED AGAINST THE ONE–TIME CONVERSION
2471-FEE ASSESSED UNDER T HIS SECTION.
2472-
2473- (G) (F) ALL FEES COLLECTED UN DER THIS SECTION SHA LL BE PAID TO
2474-THE DIVISION ADMINISTRATION .
2475-
2476-36–404.
2477-
2478- (A) (1) ON OR BEFORE JANUARY 1, 2024, THE DIVISION
2479-ADMINISTRATION SHALL BEGIN ISSUING FIRST ROUND LICENSES IN ACCORDANCE
2480-WITH SUBSECTION (D) OF THIS SECTION.
2481-
2482- (2) ON OR AFTER MAY 1, 2024, THE DIVISION ADMINISTRATION
2483-SHALL BEGIN ISSUING SECOND ROUND LICENSES IN ACCORDAN CE WITH
2484-SUBSECTIONS (E) OR (F) OF THIS SECTION.
2485-
2486- (3) SUBJECT TO PARAGRAPHS (1) AND (2) OF THIS SUBSECTION , THE
2487-DIVISION ADMINISTRATION MAY ISSUE LICENSES I N ACCORDANCE WITH
2488-SUBSECTION (G) OF THIS SECTION.
2489-
2490- (B) (1) THE DIVISION ADMINISTRATION SHALL:
2491-
2492- (I) CONDUCT EXTENSIVE OU TREACH TO SMALL , MINORITY,
2493-AND WOMEN BUSINESS O WNERS AND ENTREPRENE URS WHO MAY HAVE AN INTEREST
2494-IN APPLYING FOR A CA NNABIS LICENSE BEFOR E ACCEPTING AND PROC ESSING
2495-CANNABIS LICENSE APP LICATIONS;
2496-
2497- (II) CONNECT POTENTIAL SO CIAL EQUITY APPLICAN TS WITH
2498-THE OFFICE OF SOCIAL EQUITY;
2499-
2500- (III) ACCEPT AND PROCESS A PPLICATIONS FOR LICE NSES:
2501-
2502- 1. IN RESPONSE TO A REQ UEST FOR APPLICATION S
2503-ISSUED UNDER THIS SE CTION;
2504-
2505- 2. FOR A PERIOD OF 30 CALENDAR DAYS; AND
2506-
2507- 3. BEGINNING ON A DATE THAT IS AT LEAST 60
2508-CALENDAR DAYS AFTER THE DATE ON WHICH TH E DIVISION ADMINISTRATION
2509-ISSUED THE REQUEST F OR APPLICATIONS ;
2510- Ch. 254 2023 LAWS OF MARYLAND
2511-
2512-– 56 –
2513- (IV) AWARD CANNABIS LICEN SES IN AT LEAST TWO SEPARATE
2514-ROUNDS IN ACCORDANCE WITH THIS SECTION; AND
2515-
2516- (V) RESERVE A REASONABLE NUMBER OF LICENSES T O ALLOW
2517-MICRO LICENSES TO TR ANSITION TO STANDARD LICENSES, AS DETERMINED IN
2518-REGULATIONS BY THE DIVISION ADMINISTRATION .
2519-
2520- (2) THE DIVISION ADMINISTRATION MAY SUSPEND , FINE, RESTRICT,
2521-OR REVOKE A CANNABIS LICENSE IF IT IS DETERMINED THA T A CANNABIS LICENSE E
2522-HAS NOT COMPLIED WIT H STATEMENTS IN THE APPLICATION, INCLUDING
2523-STATEMENTS ABOUT STA NDARDS OF OPERATION OR EMPLOYMENT PRACTI CES
2524-RELATED TO DIVERSITY , EQUITY, AND INCLUSION .
2525-
2526- (3) THE DIVISION ADMINISTRATION MAY NOT:
2527-
2528- (I) ACCEPT MORE THAN ONE APPLICATION PER LICE NSE TYPE
2529-FROM AN APPLICANT IN ANY ROUND;
2530-
2531- (II) ACCEPT MORE THAN TWO APPLICATIONS FROM AN
2532-APPLICANT IN ANY ROU ND;
2533-
2534- (III) REQUIRE THAT AN APPL ICANT POSSESS OR OWN A
2535-PROPERTY OR FACILITY TO OPERATE A CANNABI S BUSINESS AT THE TI ME OF
2536-APPLICATION; OR
2537-
2538- (IV) REGARDLESS OF THE NU MBER OF LICENSE AWAR DS
2539-AUTHORIZED IN EACH R OUND, AWARD MORE LICENSES THAN THE TOTAL NUMBE R
2540-OF LICENSES AUTHORIZED UNDER § 36–401(D) OF THIS SUBTITLE; OR
2541-
2542- (V) CONDUCT A MARKET DEM AND STUDY BEFORE THE FIRST
2543-ROUND LICENSES ARE I SSUED.
2544-
2545- (4) THE DIVISION ADMINISTRATION MAY ADOPT REGULATION S
2546-CONCERNING THE EQUIT Y AND FAIRNESS OF TH E POOL OF APPLICANTS
2547-THROUGHOUT THE APPLICATI ON PROCESS.
2548-
2549- (C) TO BE LICENSED , AN APPLICANT SHALL S UBMIT TO THE DIVISION
2550-ADMINISTRATION :
2551-
2552- (1) AN APPLICATION FEE I N ACCORDANCE WITH § 36–403 OF THIS
2553-SUBTITLE; AND
2554- WES MOORE, Governor Ch. 254
2555-
2556-– 57 –
2557- (2) AN APPLICATION DEVEL OPED BY THE DIVISION ADMINISTRATION
2558-UNDER THIS TITLE.
2559-
2560- (D) (1) FOR THE FIRST ROUND , SUBJECT TO PARAGRAPH S (2) AND (3) OF
2561-THIS SUBSECTION , THE DIVISION ADMINISTRATION SHALL ENTER EACH SOC IAL
2562-EQUITY APPLICANT THA T MEETS THE MINIMUM QUALIFICATIONS ESTAB LISHED BY
2563-THE DIVISION ADMINISTRATION INTO A LOTTERY AND ISSUE TO SOCIAL EQUITY
2564-APPLICANTS NOT MORE THAN:
2565-
2566- (I) FOR STANDARD LICENSE S:
2567-
2568- 1. 20 GROWER LICENSES ;
2569-
2570- 2. 40 PROCESSOR LICENSES ; AND
2571-
2572- 3. 80 DISPENSARY LICENSES ;
2573-
2574- (II) FOR MICRO LICENSES :
2575-
2576- 1. 30 GROWER LICENSES ;
2577-
2578- 2. 30 PROCESSOR LICENSES ; AND
2579-
2580- 3. 75 10 DISPENSARY LICENSES ; AND
2581-
2582- (III) 10 INCUBATOR SPACE LICE NSES.
2583-
2584- (2) THE DIVISION ADMINISTRATION SHALL DETERMINE WHET HER
2585-AN APPLICATION MEETS THE MINIMUM QUALIFIC ATIONS FOR THE LOTTE RY ON A
2586-PASS–FAIL BASIS, AS DETERMINED BY THE DIVISION ADMINISTRATION , AFTER
2587-EVALUATING:
2588-
2589- (I) A DETAILED OPERATION AL PLAN FOR THE SAFE , SECURE,
2590-AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS;
2591-
2592- (II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF
2593-SUCCESS AND SUFFICIE NT BUSINESS ABILITY AND EXPERIENCE ON TH E PART OF
2594-THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING
2595-CONDITIONS; AND
2596-
2597- (III) A DETAILED DIVERSITY PLAN.
2598-
2599- (3) (I) IF AN APPLICANT SEEKI NG SOCIAL EQUITY STA TUS IS FROM
2600-OUT–OF–STATE, THE APPLICANT MUST S UBMIT WITH THE APPLI CATION EVIDENCE Ch. 254 2023 LAWS OF MARYLAND
2601-
2602-– 58 –
2603-THAT THE APPLICANT M EETS THE CRITERIA FO R A SOCIAL EQUITY AP PLICANT
2604-ESTABLISHED UNDER TH IS TITLE BEFORE THE ADMINISTRATION MAY CO NSIDER
2605-THE APPLICATION .
2606-
2607- (II) FIRST ROUND APPLICATI ON SUBMISSIONS FOR A LL
2608-LICENSE TYPES ARE LI MITED TO SOCIAL EQUI TY APPLICANTS.
2609-
2610- (4) (I) ON OR BEFORE JANUARY 1, 2024, THE ADMINISTRATION
2611-SHALL SUBMIT AN INTE RIM REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE
2612-WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE ABILITY OF MI CRO
2613-DISPENSARY LICENSEES TO SAFELY AND SECURE LY DISPENSE CANNABIS .
2614-
2615- (II) ON OR BEFORE DECEMBER 31, 2024, THE ADMINISTRATION
2616-SHALL SUBMIT A R EPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH §
2617-2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE ABILITY OF MI CRO
2618-DISPENSARY LICENSEES TO SAFELY AND SECURE LY DISPENSE CANNABIS .
2619-
2620- (E) FOR THE SECOND ROUND OF LICENSING , THE DIVISION
2621-ADMINISTRATION SHALL ISSUE LICENSES IN AC CORDANCE WITH SUBSEC TION (F)
2622-OR (G) OF THIS SECTION.
2623-
2624- (E) (F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF THE
2625-DIVISION ADMINISTRATION , IN CONSULTATION WITH THE CERTIFICATION AG ENCY
2626-DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER § 14–303(B) OF THE STATE
2627-FINANCE AND PROCUREMENT ARTICLE, THE GOVERNOR’S OFFICE OF SMALL,
2628-MINORITY, AND WOMEN BUSINESS AFFAIRS, THE GENERAL ASSEMBLY, AND THE
2629-OFFICE OF THE ATTORNEY GENERAL, DETERMINES THAT THE APPLICANTS
2630-AWARDED A LICENSE UN DER SUBSECTION (D) OF THIS SECTION ARE NOT DIVERSE
2631-AND A DISPARITY STUD Y DETERMINES THAT TH ERE IS A COMPELLING INTEREST TO
2632-IMPLEMENT REMEDIAL M EASURES TO ASSIST MI NORITIES AND WOMEN I N THE
2633-CANNABIS INDUSTRY A DISPARITY STUDY DE MONSTRATES A STRONG BASIS IN
2634-EVIDENCE OF BU SINESS DISCRIMINATIO N AGAINST FIRMS OWNE D BY MINORITIES
2635-AND WOMEN IN THE MARYLAND CANNABIS MAR KET, THE DIVISION
2636-ADMINISTRATION SHALL ENTER EACH APPLICANT THAT MEETS THE MINIMUM
2637-QUALIFICATIONS ESTAB LISHED BY THE DIVISION INTO A LOTTE RY AND ISSUE TO
2638-THE APPLICANTS A SECOND ROUND OF LI CENSES, APPLYING MINIMUM LIC ENSING
2639-QUALIFICATIONS AND EMPLOYING REMEDIAL M EASURES CONSISTENT W ITH
2640-CONSTITUTIONAL REQUI REMENTS, FOR NOT MORE THAN :
2641-
2642- (I) FOR STANDARD LICENSE S:
2643-
2644- 1. 25 GROWER LICENSES ;
2645- WES MOORE, Governor Ch. 254
2646-
2647-– 59 –
2648- 2. 25 PROCESSOR LICENSES; AND
2649-
2650- 3. 120 DISPENSARY LICENSES ;
2651-
2652- (II) FOR MICRO LICENSES :
2653-
2654- 1. 70 GROWER LICENSES ; AND
2655-
2656- 2. 70 PROCESSOR LICENSES ; AND
2657-
2658- 3. 125 190 DISPENSARY LICENSES ;
2659-
2660- (III) 10 INCUBATOR SPACE LICE NSES; AND
2661-
2662- (IV) 15 ON–SITE CONSUMPTION LICENSES.
2663-
2664- (2) THE DIVISION SHALL DETERM INE WHETHER AN APPLI CATION
2665-MEETS THE MINIMUM QU ALIFICATIONS FOR A L OTTERY BASED ON A PA SS–FAIL
2666-BASIS, AS DETERMINED BY THE DIVISION, AFTER EVALUATING :
2667-
2668- (I) A DETAILED OPERATION AL PLAN FOR THE SAFE , SECURE,
2669-AND EFFECTIVE CULTIVATIO N, MANUFACTURE , OR DISPENSING OF CAN NABIS;
2670-
2671- (II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF
2672-SUCCESS AND SUFFICIE NT BUSINESS ABILITY AND EXPERIENCE ON TH E PART OF
2673-THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING
2674-CONDITIONS;
2675-
2676- (III) A DETAILED DIVERSITY PLAN; AND
2677-
2678- (IV) REMEDIAL MEASURES ES TABLISHED IN ACCORDA NCE
2679-WITH A DISPARITY STU DY.
2680-
2681- (2) IF THE DIVISION ADMINISTRATION , IN CONSULTATION WITH THE
2682-CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER §
2683-14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE
2684-GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE
2685-GENERAL ASSEMBLY, AND THE OFFICE OF THE ATTORNEY GENERAL, DETERMINES
2686-THAT A LOTTERY SYSTE M EMPLOYING REMEDIAL MEASURES ESTABLISHED IN
2687-ACCORDANCE WITH A DI SPARITY STUDY CAN BE CONDUCTED CONSISTENT WITH
2688-CONSTITUTIONAL REQUI REMENTS, THE DIVISION ADMINISTRATION SHALL AWARD
2689-LICENSES UNDER P ARAGRAPH (1) OF THIS SUBSECTION T HROUGH A LOTTERY
2690-PROCESS THAT EMPLOYS REMEDIAL MEASURES .
2691- Ch. 254 2023 LAWS OF MARYLAND
2692-
2693-– 60 –
2694- (F) (G) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS
2695-SUBSECTION, IF THE DIVISION ADMINISTRATION , IN CONSULTATION WITH THE
2696-CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER §
2697-14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE
2698-GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE
2699-GENERAL ASSEMBLY, AND THE OFFICE OF THE ATTORNEY GENERAL, DETERMINES
2700-THAT THE APPLICANTS AWARDED A LICENSE UNDER SUBS ECTION (D) OF THIS
2701-SECTION ARE DIVERSE REGARDLESS OF THE RE SULTS OF A DISPARITY STUDY DOES
2702-NOT DEMONSTRATE A ST RONG BASIS IN EVIDEN CE OF BUSINESS DISCR IMINATION
2703-AGAINST FIRMS OWNED BY MINORITIES AND WO MEN IN THE MARYLAND CANNABIS
2704-MARKET, THE DIVISION ADMINISTRATION SHALL ENTER EACH APP LICANT THAT
2705-MEETS THE MINIMUM QU ALIFICATIONS ESTABLI SHED BY THE DIVISION
2706-ADMINISTRATION INTO A LOTTERY AND I SSUE TO THE APPLICAN TS NOT MORE
2707-THAN:
2708-
2709- (I) FOR STANDARD LICENSE S:
2710-
2711- 1. 25 GROWER LICENSES ;
2712-
2713- 2. 25 PROCESSOR LICENSES ; AND
2714-
2715- 3. 120 DISPENSARY LICENSES ;
2716-
2717- (II) FOR MICRO LICENSES :
2718-
2719- 1. 70 GROWER LICENSES ; AND
2720-
2721- 2. 70 PROCESSOR LICENSES ; AND
2722-
2723- 3. 125 190 DISPENSARY LICENSES ;
2724-
2725- (III) 10 INCUBATOR SPACE LICE NSES; AND
2726-
2727- (IV) 15 ON–SITE CONSUMPTION LIC ENSES.
2728-
2729- (2) THE DIVISION ADMINISTRATION SHALL DETERMINE WHET HER
2730-AN APPLICATION MEETS THE MINIMUM QUALIFIC ATIONS FOR A LOTTERY BASED ON
2731-A PASS–FAIL BASIS, AS DETERMINED BY THE DIVISION ADMINISTRATION , AFTER
2732-EVALUATING:
2733-
2734- (I) A DETAILED OPERATIONAL P LAN FOR THE SAFE , SECURE,
2735-AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS;
2736- WES MOORE, Governor Ch. 254
2737-
2738-– 61 –
2739- (II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF
2740-SUCCESS AND SUFFICIE NT BUSINESS ABILITY AND EXPERIENCE ON TH E PART OF
2741-THE APPLICANT , AND PROVIDING FOR APPR OPRIATE EMPLOYEE WOR KING
2742-CONDITIONS;
2743-
2744- (III) A DETAILED DIVERSITY PLAN; AND
2745-
2746- (IV) FOR ALL LICENSE TYPE S EXCEPT MICRO LICEN SES,
2747-WHETHER OR NOT THE A PPLICANT QUALIFIES A S A SOCIAL EQUITY AP PLICANT.
2748-
2749- (3) SECOND ROUND APPLICAT ION APPLICATION SUBMISSIONS FOR
2750-MICRO LICENSES UNDER THIS SUBSECTION ARE LIMITED TO SOCIAL EQ UITY
2751-APPLICANTS.
2752-
2753- (G) (H) (1) FOR CANNABIS LICENSE AWARDS SUBSEQUENT TO THE
2754-ROUND SPECIFIED UNDE R PARAGRAPH (2) SUBSECTION (F) OR (G) OF THIS
2755-SUBSECTION SECTION, THE DIVISION ADMINISTRATION SHALL AWARD LICENSES IN
2756-ACCORDANCE WITH THIS SUBSECTION.
2757-
2758- (2) THE DIVISION ADMINISTRATION SHALL AWARD LICENSES AS
2759-NEEDED IN ACCORDANCE WITH A MARKET DEMAND STUDY.
2760-
2761- (2) (3) THE DIVISION ADMINISTRATION MAY:
2762-
2763- (I) SHALL DETERMINE WHETHER AN APPLICATI ON MEETS THE
2764-MINIMUM QUALIFICATIO NS FOR A LOTTERY BAS ED ON FACTORS THAT I T DEVELOPS;
2765-AND
2766-
2767- (II) MAY LIMIT SOME OR ALL OF THE LICENSES ISSUED UNDER
2768-THIS PARAGRAPH TO SO CIAL EQUITY APPLICAN TS OR MINORITY BUSINESS
2769-APPLICANTS, IF DOING SO IS NEEDED TO ENSU RE DIVERSITY AND INC LUSION IN THE
2770-INDUSTRY, AS WARRANTED BY THE DISPARITY STUDY ; AND
2771-
2772- (II) EMPLOY REMEDIAL MEAS URES, CONSISTENT WITH
2773-CONSTITUTIONAL REQUI REMENTS, IF THE DIVISION ADMINISTRATION , IN
2774-CONSULTATION WITH TH E CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF
2775-PUBLIC WORKS UNDER § 14–303(B) OF THE STATE FINANCE AND PROCUREMENT
2776-ARTICLE, THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS
2777-AFFAIRS, THE GENERAL ASSEMBLY, AND THE OFFICE OF THE ATTORNEY
2778-GENERAL, DETERMINES TH AT A DISPARITY STUDY DEMONSTRATES A STRON G BASIS
2779-IN EVIDENCE OF BUSIN ESS DISCRIMINATION A GAINST FIRMS OWNED B Y MINORITIES
2780-AND WOMEN IN THE MARYLAND CANNABIS MAR KET.
2781- Ch. 254 2023 LAWS OF MARYLAND
2782-
2783-– 62 –
2784- (I) (1) TO THE EXTENT PRACTIC ABLE AND AUTHORIZED BY THE U.S.
2785-CONSTITUTION, A CANNABIS LICENSEE SHALL COMPL Y WITH THE STATE’S
2786-MINORITY BUSINESS ENTERPRISE PROGRAM.
2787-
2788- (2) THE ADMINISTRATION , IN CONSULTATION WITH THE
2789-CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER §
2790-14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE GOVERNOR’S
2791-OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE GENERAL
2792-ASSEMBLY, AND THE OFFICE OF THE ATTORNEY GENERAL, SHALL REVIEW THE
2793-DISPARITY STUDY REQU IRED BY CHAPTER 26 OF THE ACTS OF 2022 TO EVALUATE
2794-WHETHER APPLICATION OF THE STATE’S MINORITY BUSINESS ENTERPRISE
2795-PROGRAM TO CANNABIS L ICENSES WOULD COMPLY WITH THE CITY OF RICHMOND V.
2796-J.A. CROSON CO., 488 U.S. 469, AND ANY SUBSEQUENT F EDERAL OR
2797-CONSTITUTIONAL REQUI REMENTS.
2798-
2799- (3) ON OR BEFORE 6 MONTHS AFTER THE ISS UANCE OF A CANNABIS
2800-LICENSE UNDER § 36–401 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE,
2801-THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS,
2802-IN CONSULTATION WITH THE OFFICE OF THE ATTORNEY GENERAL AND THE OFFICE
2803-OF SOCIAL EQUITY WITHIN THE ALCOHOL, TOBACCO, AND CANNABIS COMMISSION
2804-AND THE CANNABIS LIC ENSEE, SHALL ESTABLISH A CL EAR PLAN FOR SETTING
2805-REASONABLE AND APPRO PRIATE MINORITY BUSI NESS ENTERPRISE PART ICIPATION
2806-GOALS AND PROCEDURES FOR THE PROCUREMENT OF GOODS AND SERVICE S
2807-RELATED TO CANNABIS , INCLUDING THE CULTIVATION, MANUFACTURING , AND
2808-DISPENSING OF CANNAB IS.
2809-
2810- (4) TO THE EXTENT PRACTIC ABLE, THE GOALS AND PROCED URES
2811-SPECIFIED IN PARAGRA PH (3) OF THIS SUBSECTION S HALL BE BASED ON THE
2812-REQUIREMENTS OF TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND
2813-PROCUREMENT ARTICLE AND THE REGUL ATIONS IMPLEMENTING THAT SUBTITLE.
2814-
2815-36–405.
2816-
2817- (A) A LOCAL JURISDICTION POLITICAL SUBDIVISIO N MAY:
2818-
2819- (1) ESTABLISH REASONABLE ZONING REQUIREMENTS FOR CANNABIS
2820-BUSINESSES; AND
2821-
2822- (2) DECIDE HOW TO DISTRI BUTE ITS ALLOCATION OF REVENUE
2823-UNDER § 2–1302.2 OF THE TAX – GENERAL ARTICLE.
2824-
2825- (B) A LOCAL JURISDICTION POLITICAL SUBDIVISIO N MAY NOT:
2826- WES MOORE, Governor Ch. 254
2827-
2828-– 63 –
2829- (1) IMPOSE A TAX ON CANN ABIS;
2830-
2831- (2) (1) ESTABLISH ZONING OR OTHER REQUIREMENTS T HAT
2832-UNDULY BURDEN A CANN ABIS LICENSEE;
2833-
2834- (3) (2) IMPOSE LICENSING, OPERATING, OR OTHER FEES OR
2835-REQUIREMENTS ON A CA NNABIS LICENSEE THAT ARE DISPROPORTIONATE LY
2836-GREATER OR MORE BURD ENSOME THAN THOSE IM POSED ON OTHER BUSIN ESSES
2837-WITH A SIMILAR IMPAC T ON THE AREA WHERE THE CANNABIS LICENSE E IS
2838-LOCATED;
2839-
2840- (3) PROHIBIT TRANSPORTATION TH ROUGH OR DELIVERIES WITHIN
2841-THE LOCAL JURISDICTION POLITICAL SUBDIVISIO N BY CANNABIS ESTABLISHMENTS
2842-BUSINESSES LOCATED IN OTHER JURISDICTIONS POLITICAL SUBDIVISIO NS;
2843-
2844- (4) PREVENT AN ENTITY WH OSE LICENSE MAY BE C ONVERTED UNDER
2845-§ 36–401(B)(1)(II) OF THIS SUBTITLE AND THAT IS IN COMPLIANC E WITH ALL
2846-RELEVANT MEDICAL CAN NABIS REGULATIONS FR OM BEING GRANTED THE LICENSE
2847-CONVERSION ; OR
2848-
2849- (5) NEGOTIATE OR ENTER I NTO AN AGREEMENT WIT H A CANNABIS
2850-ESTABLISHMENT OR A C ANNABIS ESTABLISHMEN T APPLICANT LICENSEE OR AN
2851-APPLICANT FOR A CANN ABIS LICENSE REQUIRING THAT THE C ANNABIS
2852-ESTABLISHMENT LICENSEE OR APPLICANT PROVIDE MONEY, DONATIONS,
2853-IN–KIND CONTRIBUTIONS , SERVICES, OR ANYTHING OF VALUE TO THE LOCAL
2854-JURISDICTION POLITICAL SUBDIVISIO N.
2855-
2856- (C) THE USE OF A FACILITY BY A CANNABIS LICENS EE IS NOT REQUIRED T O
2857-BE SUBMITTED TO , OR APPROVED BY , A COUNTY OR MUNICIPA L ZONING BOARD ,
2858-AUTHORITY, OR UNIT IF IT THE FACILITY:
2859-
2860- (1) WAS PROPERLY ZONED A ND OPERATING ON OR B EFORE JANUARY
2861-1, 2023; OR
2862-
2863- (2) IS USED BY A GROWER , PROCESSOR, OR DISPENSARY THAT :
2864-
2865- (I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE
2866-OCTOBER 1, 2022; AND
2867-
2868- (II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022.
2869-
2870- (D) A POLITICAL SUBDIVISIO N OR SPECIAL TAXING DISTRICT MAY NOT
2871-IMPOSE A TAX ON CANNABIS .
2872- Ch. 254 2023 LAWS OF MARYLAND
2873-
2874-– 64 –
2875-36–406.
2876-
2877- (A) THE DIVISION ADMINISTRATION MAY ISSUE INCUBATOR SPACE
2878-LICENSES AUTHORIZING AN A NONPROFIT ENTITY TO OPERATE A LICENSED
2879-PREMISES IN WHICH MI CRO LICENSEES MAY OP ERATE A CANNABIS BUS INESS.
2880-
2881- (B) SUBJECT TO SUBSECTION (C) (D) OF THIS SECTION , THE MARYLAND
2882-ECONOMIC DEVELOPMENT CORPORATION , IN CONSULTATION WITH THE DIVISION
2883-ADMINISTRATION , SHALL ACQUIRE AND CO NSTRUCT OR REFURBISH AT LEAST ONE
2884-FACILITY TO OPERATE AN INCUBATOR SPACE .
2885-
2886- (C) THE MARYLAND ECONOMIC DEVELOPMENT CORPORAT ION MAY ENTER
2887-INTO A MEMORANDUM OF UNDERSTANDING WITH A NONPROFIT ORGANIZATI ON TO
2888-OPERATE A FACILITY U NDER SUBSECTION (B) OF THIS SECTION IF T HE DIVISION
2889-AND THE CORPORATION PROVIDE O VERSIGHT OF THE FACI LITY.
2890-
2891- (C) AFTER THE COMPLETION OF THE CONSTRUCTION OR REFURBISHMENT
2892-OF A FACILITY ACQUIR ED UNDER SUBSECTION (B) OF THIS SECTION, OWNERSHIP OF
2893-THE FACILITIES SHALL BE TRANSFERRED TO TH E DEPARTMENT OF GENERAL
2894-SERVICES.
2895-
2896- (D) THE DEPARTMENT OF GENERAL SERVICES SHALL CONTRA CT WITH A
2897-NONPROFIT ORGANIZATI ON TO OPERATE A FACILITY U NDER SUBSECTION (B) OF
2898-THIS SECTION.
2899-
2900- (D) (E) AN INCUBATOR SPACE LI CENSEE MAY PURCHASE EQUIPMENT TO
2901-BE USED BY OTHER INC UBATOR SPACE LICENSE ES IN THE SAME INCUB ATOR SPACE.
2902-
2903- (D) (E) (F) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATIONS TO
2904-ESTABLISH A MARYLAND INCUBATOR PROGRAM BASED ON THE BEST PRACTICES IN
2905-OTHER STATES .
2906-
2907-36–407.
2908-
2909- (A) (1) A PERSON SHALL OBTAIN AN ON–SITE CONSUMPTION LIC ENSE
2910-FROM THE ADMINISTRATION BEFORE OPERATING A PREMISES WHERE CANNABIS
2911-MAY BE CONSUMED .
2912-
2913- (2) THE DIVISION ADMINISTRATION MAY ISSUE ON –SITE
2914-CONSUMPTION LICENSES AUTHORIZING AN ENTIT Y TO OPERATE A LICEN SED
2915-PREMISES IN WHICH CA NNABIS MAY BE CONSUMED , BUT NOT SMOKED INDOO RS, IN
2916-ACCORDANCE WITH THIS TITLE AND ANY REGULA TIONS ADOPTED UNDER THIS
2917-TITLE. WES MOORE, Governor Ch. 254
2918-
2919-– 65 –
2920-
2921- (2) (3) AN ON–SITE CONSUMPTION EST ABLISHMENT MAY OPERA TE
2922-ONLY IF THE COUNTY A ND, IF APPLICABLE , THE MUNICIPALITY , WHERE THE
2923-BUSINESS IS LOCATED HAVE ISSUED A PERMIT OR LICENSE THAT EXPR ESSLY
2924-ALLOWS THE OPERATION OF THE ON–SITE CONSUMPTION EST ABLISHMENT.
2925-
2926- (B) SUBJECT TO THE LIMITA TIONS IN § 36–405 OF THIS SUBTITLE , A
2927-COUNTY AND, IF APPLICABLE, A MUNICIPALITY MAY :
2928-
2929- (1) PROHIBIT THE OPERATI ON OF ON –SITE CONSUMPTION
2930-ESTABLISHMENTS ;
2931-
2932- (2) PROHIBIT OR RESTRICT THE SMOKING OR VAPIN G OF CANNABIS
2933-AT ON–SITE CONSUMPTION EST ABLISHMENTS ; OR
2934-
2935- (3) ADOPT ZONING AND PLA NNING REQUIREMENTS F OR ON–SITE
2936-CONSUMPTION ESTABLIS HMENTS.
2937-
2938- (C) (1) AN ON–SITE CONSUMPTION LIC ENSE AUTHORIZES AN E NTITY TO
2939-DISTRIBUTE CANNABIS OR CANNABIS PRODUCTS FOR ON–SITE CONSUMPTION .
2940-
2941- (2) AN ON–SITE CONSUMPTION LIC ENSE DOES NOT AUTHOR IZE THE
2942-HOLDER OF THE LICENS E TO:
2943-
2944- (I) CULTIVATE CANNABIS ;
2945-
2946- (II) PROCESS CANNABIS OR CANNABIS–INFUSED PRODUCTS ; OR
2947-
2948- (III) ADD CANNABIS TO FOOD PREPARED OR SERVED O N THE
2949-PREMISES.
2950-
2951- (D) A FOOD SERVICE FACILITY , AS DEFINED IN § 21–301 OF THE HEALTH –
2952-GENERAL ARTICLE, MAY APPLY FOR A LICE NSE TO OPERATE AN ON –SITE
2953-CONSUMPTION ESTABLIS HMENT.
2954-
2955- (E) THE DIVISION SHALL:
2956-
2957- (D) A BUSINESS THAT HAS AV ERAGE DAILY RECEIPTS FROM THE SALE OF
2958-BAKERY GOODS THAT ARE AT LEAST 50% OF THE AVERAGE DAILY RECEIPTS OF THE
2959-BUSINESS MAY APPLY F OR A LICENSE TO OPER ATE AN ON–SITE CONSUMPTION
2960-ESTABLISHMENT .
2961-
2962- (E) THE ADMINISTRATION SHALL :
2963- Ch. 254 2023 LAWS OF MARYLAND
2964-
2965-– 66 –
2966- (1) MAINTAIN A LIST OF A LL ON–SITE CONSUMPTION
2967-ESTABLISHMENTS IN TH E STATE; AND
2968-
2969- (2) MAKE THE LIST AVAILA BLE ON ITS WEBSITE .
2970-
2971- (F) AN ON–SITE CONSUMPTION EST ABLISHMENT MAY NOT :
2972-
2973- (1) ALLOW ON–DUTY EMPLOYEES OF TH E BUSINESS TO CONSUM E
2974-CANNABIS ON THE LICE NSED PREMISES ;
2975-
2976- (2) DISTRIBUTE OR ALLOW THE DISTRIBUTION OF FREE SAMPLES OF
2977-CANNABIS ON THE LICE NSED PREMISES ;
2978-
2979- (3) ALLOW THE CONSUMPTIO N OF ALCOHOL ON THE LICENSED
2980-PREMISES;
2981-
2982- (4) ALLOW THE SMOKING OR VAPING OF TOBACCO OR TOBACCO
2983-PRODUCTS ON THE LICE NSED PREMISES ;
2984-
2985- (5) ALLOW AN ACTIVITY ON THE LICENSED PREMISE S THAT WOULD
2986-REQUIRE AN ADDITIONAL LICENSE UNDER THIS T ITLE, INCLUDING GROWING ,
2987-PROCESSING, OR DISPENSING ;
2988-
2989- (6) ALLOW THE INDOOR SMO KING OF CANNABIS OR CANNABIS
2990-PRODUCTS ON THE LICE NSED PREMISES ;
2991-
2992- (7) ALLOW THE USE OR CON SUMPTION OF CANNABIS BY A PATRON
2993-WHO DISPLAYS ANY VISIBLE SIGNS OF INTOXICATION; OR
2994-
2995- (7) (8) ADMIT ONTO THE LICEN SED PREMISES AN INDI VIDUAL WHO
2996-IS UNDER THE AGE OF 21 YEARS.
2997-
2998- (G) AN ON–SITE CONSUMPTION EST ABLISHMENT SHALL :
2999-
3000- (1) REQUIRE ALL EMPLOYEE S TO SUCCESSFULLY CO MPLETE AN
3001-ANNUAL RESPONSIBLE VENDOR TRAINING PROG RAM AUTHORIZED UNDER THIS
3002-TITLE; AND
3003-
3004- (2) ENSURE THAT THE DISP LAY AND CONSUMPTION OF CANNABIS OR
3005-CANNABIS PRODUCTS AR E NOT VISIBLE FROM O UTSIDE OF THE LICENS ED
3006-PREMISES.
3007- WES MOORE, Governor Ch. 254
3008-
3009-– 67 –
3010- (H) (1) AN ON–SITE CANNABIS ESTABL ISHMENT SHALL EDUCAT E
3011-CONSUMERS BY PROVIDING IN FORMATIONAL MATERIAL S REGARDING THE SAFE
3012-CONSUMPTION OF CANNA BIS.
3013-
3014- (2) THE EDUCATIONAL MATER IALS PROVIDED UNDER PARAGRAPH
3015-(1) OF THIS SUBSECTION M UST BE BASED ON THE REQUIREMENTS ESTABLI SHED BY
3016-THE CANNABIS PUBLIC HEALTH ADVISORY COUNCIL ESTABLISHED UNDE R §
3017-13–4502 OF THE HEALTH – GENERAL ARTICLE.
3018-
3019- (I) THIS SECTION DOES NOT PROHIBIT A COUNTY OR MUNICIPALITY FROM
3020-ADOPTING ADDITIONAL REQUIREMENTS FOR EDU CATION ON THE SAFE
3021-CONSUMPTION OF CANNA BIS ON THE PREMISES OF A LICENSED ON –SITE
3022-CONSUMPTION ESTABLISH MENT.
3023-
3024- (J) A PERSON MAY HAVE AN O WNERSHIP INTEREST IN OR CONTROL OF ,
3025-INCLUDING THE POWER TO MANAGE AND OPERAT E, TWO ON–SITE CONSUMPTION
3026-ESTABLISHMENTS LICEN SED UNDER THIS SECTI ON.
3027-
3028-36–408.
3029-
3030- (A) (1) THE DIVISION ADMINISTRATION SHALL REGISTER AT LEAST ON E
3031-INDEPENDENT TESTING LABORATORY TO TEST C ANNABIS AND CANNABIS PRODUCTS
3032-THAT ARE TO BE SOLD IN THE STATE.
3033-
3034- (2) THE DIVISION ADMINISTRATION SHALL HOLD MEDICAL A ND
3035-ADULT–USE CANNABIS TESTING TO THE SAME STANDARD S.
3036-
3037- (B) TO BE REGISTERED AS AN INDEPENDENT TE STING LABORATORY , A
3038-LABORATORY MUST :
3039-
3040- (1) MEET THE APPLICATION REQUIREMENTS ESTABLI SHED BY THE
3041-DIVISION ADMINISTRATION ;
3042-
3043- (2) PAY AN APPLICATION F EE DETERMINED BY THE DIVISION
3044-ADMINISTRATION ; AND
3045-
3046- (3) MEET THE STANDARDS A ND REQUIR EMENTS FOR
3047-ACCREDITATION , INSPECTION, AND TESTING ESTABLIS HED BY THE DIVISION
3048-ADMINISTRATION .
3049-
3050- (C) (1) AN INDEPENDENT TESTIN G LABORATORY LICENSE IS VALID FOR
3051-2 YEARS ON INITIAL LIC ENSURE.
3052- Ch. 254 2023 LAWS OF MARYLAND
3053-
3054-– 68 –
3055- (2) AN INDEPENDENT TESTIN G LABORATORY LICENSE IS VALID FOR
3056-2 YEARS ON RENEWAL .
3057-
3058- (D) A REGISTERED INDEPENDE NT TESTING LABORATOR Y IS AUTHORIZED
3059-TO TEST AND TRANSPOR T CANNABIS AND CANNA BIS PRODUCTS ON BEHA LF OF
3060-CANNABIS LICENSEES .
3061-
3062- (E) (1) A LABORATORY AGENT OR AN EMPLOYEE OF AN IN DEPENDENT
3063-TESTING LABORATORY M AY NOT RE CEIVE DIRECT OR INDI RECT FINANCIAL
3064-COMPENSATION , OTHER THAN REASONABL E CONTRACTUAL FEES T O CONDUCT
3065-TESTING, FROM ANY ENTITY FOR WHICH IT IS CONDUCTI NG TESTING UNDER THI S
3066-TITLE.
3067-
3068- (2) AN INDIVIDUAL WHO POS SESSES AN INTEREST I N OR IS A
3069-LABORATORY AGENT EMP LOYED BY AN INDEPENDE NT TESTING LABORATOR Y, OR
3070-AN IMMEDIATE FAMILY MEMBER OF THE INDIVI DUAL, MAY NOT POSSESS AN
3071-INTEREST IN OR BE EM PLOYED BY A CANNABIS LICENSEE.
3072-
3073- (F) CANNABIS AND CANNABIS PRODUCTS MAY NOT BE SOLD OR OTHERWISE
3074-MARKETED UNDER THIS TITLE IF THE CANNABIS OR CANN ABIS PRODUCT HAS NOT
3075-BEEN TESTED BY AN IN DEPENDENT TESTING LA BORATORY AND DETERMI NED TO
3076-MEET THE DIVISION’S ADMINISTRATION ’S TESTING PROTOCOLS .
3077-
3078- (G) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS THAT
3079-ESTABLISH:
3080-
3081- (1) THE STANDARDS AND REQUIR EMENTS TO BE MET BY AN
3082-INDEPENDENT TESTING LABORATORY TO OBTAIN A REGISTRATION ;
3083-
3084- (2) THE STANDARDS OF CAR E TO BE FOLLOWED BY AN INDEPENDENT
3085-TESTING LABORATORY ; AND
3086-
3087- (3) THE BASIS AND PROCES SES FOR DENIAL , REVOCATION , AND
3088-SUSPENSION OF A REGISTRATION OF AN INDEPENDENT TESTI NG LABORATORY .
3089-
3090- (H) THE DIVISION ADMINISTRATION MAY INSPECT AN INDEP ENDENT
3091-TESTING LABORATORY R EGISTERED UNDER THIS SECTION TO ENSURE CO MPLIANCE
3092-WITH THIS TITLE AND ANY REGULATIONS ADOP TED UNDER THIS TITLE .
3093-
3094- (I) (1) ANY REGISTRATION TO O PERATE AN INDEPENDEN T TESTING
3095-LABORATORY ISSUED BY THE NATALIE M. LAPRADE MEDICAL CANNABIS
3096-COMMISSION ON OR BEFO RE JULY 1, 2023, SHALL BE VALID UNDER THIS TITLE AND WES MOORE, Governor Ch. 254
3097-
3098-– 69 –
3099-SHALL AUTHORIZE AN I NDEPENDENT TESTING L ABORATORY TO PERFORM TESTING
3100-ON MEDICAL AND ADULT –USE CANNABIS AND CAN NABIS PRODUCTS .
3101-
3102- (2) THE DIVISION ADMINISTRATION SHALL CONVERT ALL
3103-INDEPENDENT TESTING LABORATORY REGISTRAT IONS IN ACCORDANCE W ITH THIS
3104-SUBSECTION.
3105-
3106-36–409.
3107-
3108- (A) THE FOLLOWING BUSINES SES SHALL REGISTER W ITH THE DIVISION
3109-ADMINISTRATION IN ORDER TO PROVIDE SERVICES TO A CANNAB IS LICENSEE:
3110-
3111- (1) A TRANSPORTER ;
3112-
3113- (2) A SECURITY GUARD AGE NCY;
3114-
3115- (3) A WASTE DISPOSAL COM PANY; AND
3116-
3117- (4) ANY OTHER TYPE OF CA NNABIS BUSINESS THAT IS AUTHORIZED
3118-BY THE DIVISION ADMINISTRATION TO PROVIDE PLANT OR PRODUCT–TOUCHING
3119-SERVICES TO CANNABIS LICENSEES.
3120-
3121- (B) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS THAT
3122-ESTABLISH:
3123-
3124- (1) THE STANDARDS AND RE QUIREMENTS TO BE MET BY AN ENTITY
3125-TO OBTAIN A REGISTRA TION UNDER THIS S UBTITLE; AND
3126-
3127- (2) THE BASIS AND PROCES SES FOR APPROVAL , DENIAL,
3128-REVOCATION , AND SUSPENSION OF TH E CANNABIS REGISTRAT ION.
3129-
3130- (C) A REGISTRATION TO OPER ATE A TRANSPORTER , SECURITY GUARD
3131-AGENCY, OR WASTE DISPOSAL CO MPANY ISSUED BY THE DIVISION NATALIE M.
3132-LAPRADE MEDICAL CANNABIS COMMISSION ON OR BEFORE JULY 1, 2023, SHALL
3133-BE VALID UNDER THIS TITLE AND AUTHORIZE A TRANSPORTER , SECURITY GUARD
3134-AGENCY, OR WASTE DISPOSAL CO MPANY TO HANDLE MEDI CAL AND ADULT –USE
3135-CANNABIS AND CANNABI S PRODUCTS.
3136-
3137-36–410.
3138-
3139- (A) BEGINNING JULY 1, 2023, A CANNABIS LICENSEE THAT IS OPERATING A
3140-DISPENSARY SHALL :
3141- Ch. 254 2023 LAWS OF MARYLAND
3142-
3143-– 70 –
3144- (1) ENSURE THAT IT HAS A DEQUATE SUPPLY FOR Q UALIFYING
3145-PATIENTS AND CAREGIV ERS; AND
3146-
3147- (2) SET ASIDE OPERATING HOURS OR DEDICATED SERVICE LINES TO
3148-SERVE ONLY QUALIFYIN G PATIENTS AND CAREGIVERS ; AND
3149-
3150- (3) ENSURE THAT SHELF SPACE AT LEAST 25% OF CANNABIS AND
3151-CANNABIS PRODUCTS IN THE DISPENSARY IS AVAILABLE FOR CAN NABIS AND
3152-CANNABIS PRODUCTS ARE FROM SOCIAL EQUITY LICENS EES AND GROWERS AND
3153-PROCESSORS THAT DO N OT SHARE COMMON OWNERSHIP WITH THE D ISPENSARY.
3154-
3155- (B) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, A LICENSED
3156-DISPENSARY MAY NOT L OCATE WITHIN:
3157-
3158- (1) 500 FEET OF:
3159-
3160- (I) A PRE–EXISTING PRIMARY OR SECONDARY SCHOOL IN THE
3161-STATE, OR A LICENSED CHILD CARE CENTER OR REGISTERED FAMILY CH ILD CARE
3162-HOME UNDER TITLE 9.5 OF THE EDUCATION ARTICLE; OR
3163-
3164- (II) A PLAYGROUND , RECREATION CENTER , LIBRARY, OR PUBLIC
3165-PARK; OR
3166-
3167- (2) 1,000 FEET OF ANOTHER DISP ENSARY UNDER THIS TI TLE.
3168-
3169- (C) A POLITICAL SUBDIVISIO N MAY ADOPT AN ORDIN ANCE REDUCING THE
3170-DISTANCE REQUIREMENT S UNDER SUBSECTION (B) OF THIS SECTION.
3171-
3172- (D) THE DISTANCE REQUIREM ENTS UNDER SUBSECTIO N (B) OF THIS
3173-SECTION DO NOT APPLY TO A DISPENSARY LICE NSE THAT WAS:
3174-
3175- (1) CONVERTED UNDER § 36–401(B)(1)(II) OF THIS SUBTITLE; AND
3176-
3177- (2) PROPERLY ZONED AND O PERATING BEFORE JULY 1, 2023.
3178-
3179-SUBTITLE 5. AGENT, OWNER, AND LICENSE TRANSFER REQUIREMENTS .
3180-
3181-36–501.
3182-
3183- (A) EACH A CANNABIS AGENT SHALL BE REGISTERED WITH T HE DIVISION
3184-ADMINISTRATION BEFORE THE AGENT MAY VOLUNTEER OR WORK FO R A CANNABIS
3185-LICENSEE OR CANNABIS REGISTRANT.
3186-
3187- (B) A CANNABIS AGENT REGIS TRATION IS VALID FOR 2 YEARS. WES MOORE, Governor Ch. 254
3188-
3189-– 71 –
3190-
3191- (C) TO BE ELIGIBLE TO REGISTER AS A CANNABIS AGENT WITH THE
3192-DIVISION ADMINISTRATION , A CANNABIS AGENT AN INDIVIDUAL MUST:
3193-
3194- (1) BE AT LEAST 21 YEARS OLD; AND
3195-
3196- (2) IF THE RECORDS ARE L EGALLY ACCESSIBLE , OBTAIN A STATE AND
3197-NATIONAL CRIMINAL HI STORY RECORDS CHECK IN ACCORDANCE WITH § 36–505 OF
3198-THIS SUBTITLE.
3199-
3200- (D) THE DIVISION ADMINISTRATION MAY NOT REGISTER AS A CANNABIS
3201-AGENT AN INDIVIDUAL WHO :
3202-
3203- (1) DOES NOT MEET THE CR ITERIA ESTABLISHED U NDER
3204-SUBSECTION (C) OF THIS SECTION; OR
3205-
3206- (2) HAS BEEN CONVICTED O F OR PLEADED NOLO CO NTENDERE TO A
3207-CRIME INVOLVING MORA L TURPITUDE, WHETHER OR NOT ANY A PPEAL OR OTHER
3208-PROCEEDING IS PENDIN G TO HAVE THE CONVICTIO N OR PLEA SET ASIDE .
3209-
3210- (E) THE DIVISION ADMINISTRATION MAY NOT DENY A CANNA BIS AGENT
3211-REGISTRATION BASED O N ANY CANNABIS –RELATED OFFENSES OCC URRING BEFORE
3212-JANUARY JULY 1, 2023.
3213-
3214- (F) A CANNABIS LICENSEE SH ALL REQUIRE EACH REG ISTERED CANN ABIS
3215-AGENT TO COMPLETE AN ANNUAL RESPONSIBLE V ENDOR TRAINING PROGR AM
3216-AUTHORIZED UNDER THI S TITLE.
3217-
3218- (G) A REGISTRATION OF A CA NNABIS AGENT ISSUED BY THE NATALIE M.
3219-LAPRADE MEDICAL CANNABIS COMMISSION ON OR BEFO RE JULY 1, 2023, SHALL:
3220-
3221- (1) BE VALID UNDER THIS TITLE; AND
3222-
3223- (2) AUTHORIZE THE CANNAB IS AGENT TO BE EMPLO YED BY OR
3224-VOLUNTEER WITH A LIC ENSED CANNABIS BUSIN ESS.
3225-
3226-36–502.
3227-
3228- (A) AN INDIVIDUAL A PERSON WISHING TO HOLD AN O WNERSHIP INTEREST
3229-OF 5% OR GREATER IN , OR CONTROL OF , A CANNABIS LICENSEE SHALL SUBMIT TO
3230-THE DIVISION ADMINISTRATION :
3231-
3232- (1) AN APPLICATION THAT INCLUDES THE NAME , ADDRESS, AND DATE
3233-OF BIRTH OF THE APPL ICANT; Ch. 254 2023 LAWS OF MARYLAND
3234-
3235-– 72 –
3236-
3237- (2) A STATEMENT SIGNED BY THE APPLICANT ASS ERTING THAT THE
3238-APPLICANT HAS NOT PR EVIOUSLY HAD A CANNA BIS LICENSE OR CANNA BIS
3239-REGISTRATION SUSPEND ED OR REVOKED ;
3240-
3241- (3) A STATE AND NATIONAL CR IMINAL HISTORY RECOR DS CHECK IN
3242-ACCORDANCE WITH § 36–505 OF THIS SUBTITLE;
3243-
3244- (4) ANY INFO RMATION REQUIRED BY THE DIVISION
3245-ADMINISTRATION TO COMPLETE AN INVES TIGATION INTO THE BA CKGROUND OF
3246-THE APPLICANT , INCLUDING FINANCIAL RECORDS AND OTHER IN FORMATION
3247-RELATING TO THE BUSI NESS AFFAIRS OF THE APPLICANT; AND
3248-
3249- (5) AN APPLICATION FEE I N AN AMOUNT TO BE DE TERMINED BY THE
3250-DIVISION ADMINISTRATION IN ACCORDANCE WITH T HIS SUBTITLE.
3251-
3252- (B) THE DIVISION ADMINISTRATION MAY DENY AN APPLICAT ION IF:
3253-
3254- (1) THE APPLICANT :
3255-
3256- (I) FAILS TO SUBMIT THE INFORMATION REQUIRED UNDER
3257-SUBSECTION (A) OF THIS SECTION; OR
3258-
3259- (II) HAS BEEN CONVICTED O F OR PLEADED NOLO CO NTENDERE
3260-TO A CRIME INVOLVING MORAL TURPITUDE , WHETHER OR NOT ANY A PPEAL OR
3261-OTHER PROCEEDING IS PENDING TO HAVE THE CONVICTION OR PLEA S ET ASIDE; OR
3262-
3263- (2) THE DIVISION ADMINISTRATION FINDS A SUBSTANTIAL REASON
3264-TO DENY THE REGISTRA TION.
3265-
3266-36–503.
3267-
3268- (A) A CANNABIS LICENSE GRA NTED UNDER THIS TITL E IS NOT
3269-TRANSFERABLE EXCEPT AS PROVIDED IN THIS SECTION.
3270-
3271- (B) TO TRANSFER OWNERSHIP OR CONTROL OF A LICE NSE ISSUED UNDER
3272-THIS TITLE, A LICENSEE:
3273-
3274- (1) SHALL SUBMIT TO THE DIVISION ADMINISTRATION :
3275-
3276- (I) AN APPLICATION FEE I N AN AMOUNT TO BE DE TERMINED BY
3277-THE DIVISION ADMINISTRATION IN ACCORDANCE WITH T HIS SUBTITLE; AND
3278- WES MOORE, Governor Ch. 254
3279-
3280-– 73 –
3281- (II) AN APPLICATION DEVEL OPED BY THE DIVISION
3282-ADMINISTRATION ; AND
3283-
3284- (2) MUST MEET THE REQUIR EMENTS FOR TRANSFER OF OWNERSHIP
3285-OR CONTROL ESTABLISH ED BY THE DIVISION ADMINISTRATION UNDER THIS TITLE .
3286-
3287- (C) (1) A CANNABIS LICENSEE , INCLUDING A CANNABIS LICENSEE WHOSE
3288-LICENSE WAS CONVERTE D IN ACCORDANCE WITH § 36–401 OF THIS TITLE, MAY NOT
3289-TRANSFER OWNERSHIP O R CONTROL OF THE LIC ENSE FOR A PERIOD OF AT LEAST 5
3290-YEARS FOLLOWING LICE NSURE.
3291-
3292- (2) THE 5–YEAR PERIOD SPECIFIE D IN PARAGRAPH (1) OF THIS
3293-SUBSECTION DOES NOT INCLUDE THE TIME PER IOD THAT A BUSINESS IS
3294-CONSIDERED BY THE DIVISION ADMINISTRATION TO BE IN A PREAPPROV ED
3295-LICENSURE STATUS .
3296-
3297- (3) THE LIMITATIONS UNDER THIS SUBSECTION DO N OT APPLY TO
3298-TRANSFERS AS A RESUL T OF THE DISABILITY, INCAPACITY, OR DEATH OF THE
3299-OWNER OF A CANNABIS LICENSE, THE BANKRUPTCY OR RECEIVERSHIP IN
3300-ACCORDANCE WITH A LE NDING AGREEMENT OF A CANNABIS LICENS EE, OR COURT
3301-ORDER.
3302-
3303- (4) THE LIMITATIONS UNDER THIS SUBSECTION DO NOT APPLY TO A
3304-TRANSFER OF OWNERSHI P THAT IS THE SUBJEC T OF A LEGALLY BINDI NG
3305-SETTLEMENT AGREEMENT RESULTING FROM LITIG ATION COMMENCED ON O R
3306-BEFORE JANUARY 1, 2023.
3307-
3308-36–504.
3309-
3310- (A) (1) IN THIS SECTION, “OWNER” INCLUDES ANY TYPE OF OWNER OR
3311-BENEFICIARY OF A BUSINESS ENTITY , INCLUDING A PRINCIPA L OFFICER, A
3312-DIRECTOR, A PRINCIPAL EMPLOYEE , A PARTNER, AN INVESTOR, A STOCKHOLDER ,
3313-OR A BENEFICIAL OWNE R OF THE BUSINESS EN TITY AND, NOTWITHSTANDING ANY
3314-OTHER PROVISION OF T HIS SUBTITLE, A PERSON HAVING ANY OWNERSHIP
3315-INTEREST REGARDLESS OF THE PERCENTAGE OF OWNERSHIP INTEREST .
3316-
3317- (2) “OWNER” DOES NOT INCLUDE A S TOCKHOLDER .
3318-
3319- (B) THE PROVISIONS IN THI S SECTION ARE IN ADD ITION TO THE CONFLIC T
3320-OF INTEREST PROVISIO NS IN TITLE 5 OF THE GENERAL PROVISIONS ARTICLE.
3321- Ch. 254 2023 LAWS OF MARYLAND
3322-
3323-– 74 –
3324- (C) EXCEPT AS PROVIDED IN SUBSECTION (C) (D) OF THIS SECTION , A
3325-CONSTITUTIONAL OFFIC ER OR A SECRETARY OF A PRINCIPAL DEPARTME NT OF THE
3326-EXECUTIVE BRANCH OF THE STATE GOVERNMENT MAY NOT:
3327-
3328- (1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT
3329-HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR
3330-
3331- (2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT
3332-HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE.
3333-
3334- (C) (D) A SUBJECT TO THE PROVIS IONS OF TITLE 5 OF THE GENERAL
3335-PROVISIONS ARTICLE, A CONSTITUTIONAL OFFIC ER OR A SECRETARY OF A
3336-PRINCIPAL DEPARTMENT OF THE EXECUTIVE BRANCH OF THE STATE GOVERNMENT
3337-MAY REMAIN AN OWNER OR AN EMPLOYEE OF A BUSINESS ENTITY THAT HOLDS A
3338-LICENSE UNDER THIS TIT LE IF THE CONSTITUTI ONAL OFFICER OR SECR ETARY WAS
3339-AN OWNER OR EMPLOYEE OF THE BUSINESS ENTI TY BEFORE THE CONSTI TUTIONAL
3340-OFFICER’S ELECTION OR APPOIN TMENT OR THE SECRETA RY’S APPOINTMENT .
3341-
3342- (D) (E) A MEMBER OF THE GENERAL ASSEMBLY MAY NOT :
3343-
3344- (1) BE AN OWNER OR AN EMPLOYEE OF A BUSINESS ENTITY THAT
3345-HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR
3346-
3347- (2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT
3348-HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE.
3349-
3350- (E) (F) A FORMER MEMBER OF THE GENERAL ASSEMBLY, FOR THE
3351-1–YEAR PERIOD IMMEDIAT ELY AFTER THE MEMBER LEAVES OFFICE, MAY NOT:
3352-
3353- (1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT
3354-HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR
3355-
3356- (2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT
3357-HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE.
3358-
3359- (F) (G) AN EMPLOYEE OF THE DIVISION ADMINISTRATION MAY NOT:
3360-
3361- (1) HAVE A DIRECT OR IND IRECT FINANCIAL , OWNERSHIP, OR
3362-MANAGEMENT INTEREST , INCLUDING OWNERSHIP OF ANY STOCKS , BONDS, OR
3363-OTHER SIMILAR FINANCIAL IN STRUMENTS , IN ANY CANNABIS LICE NSEE;
3364-
3365- (2) HAVE AN OFFICIAL REL ATIONSHIP WITH A PER SON WHO HOLDS A
3366-LICENSE OR REGISTRAT ION UNDER THIS TITLE ; WES MOORE, Governor Ch. 254
3367-
3368-– 75 –
3369-
3370- (3) BE AN ELECTED OFFICI AL OF STATE OR LOCAL GOVERN MENT;
3371-
3372- (4) RECEIVE OR SHARE IN , DIRECTLY OR INDIRECTLY , THE RECEIPTS
3373-OR PROCEEDS OF A CAN NABIS LICENSEE; OR
3374-
3375- (5) HAVE A BENEFICIAL IN TEREST IN A CONTRACT FOR THE
3376-MANUFACTURE OR SALE OF CANNABIS OR THE P ROVISION OF INDEPEND ENT
3377-CONSULTING SERVICES IN CONNECTION WITH A CANNABIS LICENSE .
3378-
3379-36–505.
3380-
3381- (A) IN THIS SECTION , “CENTRAL REPOSITORY” MEANS THE CRIMINAL
3382-JUSTICE INFORMATION SYSTEM CENTRAL REPOSITORY IN THE DEPARTMENT OF
3383-PUBLIC SAFETY AND CORRECTIONAL SERVICES.
3384-
3385- (B) AS PART OF AN APPLICA TION TO THE CENTRAL REPOSITORY FOR A
3386-STATE AND NATI ONAL CRIMINAL HISTOR Y RECORDS CHECK , AN APPLICANT SHALL
3387-SUBMIT TO THE CENTRAL REPOSITORY:
3388-
3389- (1) TWO COMPLETE SETS OF LEGIBLE FINGERPRINTS TAKEN ON
3390-FORMS APPROVED BY TH E DIRECTOR OF THE CENTRAL REPOSITORY AND THE
3391-DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION;
3392-
3393- (2) THE FEE AUTHORIZED U NDER § 10–221(B)(7) OF THE CRIMINAL
3394-PROCEDURE ARTICLE FOR ACCESS TO STATE CRIMINAL HISTOR Y RECORDS; AND
3395-
3396- (3) THE PROCESSING FEE R EQUIRED BY THE FEDERAL BUREAU OF
3397-INVESTIGATION FOR A N ATIONAL CRIMINAL HIS TORY RECORDS CH ECK.
3398-
3399- (C) IN ACCORDANCE WITH §§ 10–201 THROUGH 10–228 OF THE CRIMINAL
3400-PROCEDURE ARTICLE, THE CENTRAL REPOSITORY SHALL FORW ARD TO THE
3401-DIVISION ADMINISTRATION AND TO THE APPLICANT THE APPLICANT ’S CRIMINAL
3402-HISTORY RECORD INFOR MATION.
3403-
3404- (D) IF AN APPLICANT HAS MADE TWO OR MORE UNSUCCESSFUL ATTEMPT S
3405-AT SECURING LEGIBLE FINGERPRINTS , THE DIVISION ADMINISTRATION MAY
3406-ACCEPT AN ALTERNATE METHOD OF A CRIMINAL HISTORY RECORDS CHEC K AS
3407-PERMITTED BY THE DIRECTOR OF THE CENTRAL REPOSITORY AND THE DIRECTOR
3408-OF THE FEDERAL BUREAU OF INVESTIGATION .
3409-
3410- (E) INFORMATION OBTAINED FROM THE CENTRAL REPOSITORY UNDER
3411-THIS SECTION SHALL B E:
3412- Ch. 254 2023 LAWS OF MARYLAND
3413-
3414-– 76 –
3415- (1) CONFIDENTIAL AND MAY NOT BE REDISSEMINATE D; AND
3416-
3417- (2) USED ONLY FOR THE PU RPOSE OF REGISTRATIO N UNDER THIS
3418-TITLE.
3419-
3420- (F) THE SUBJECT OF A CRIMINAL HISTORY R ECORDS CHECK UNDER T HIS
3421-SECTION MAY CONTEST THE CRIMINAL HISTORY RECORD INFORMATION
3422-DISSEMINATED BY THE CENTRAL REPOSITORY, AS PROVIDED IN § 10–223 OF THE
3423-CRIMINAL PROCEDURE ARTICLE.
3424-
3425-SUBTITLE 6. MEDICAL CANNABIS COMPASSIONATE USE FUND AND PROGRAM.
3426-
3427-36–601.
3428-
3429- (A) IN THIS SECTION , “FUND” MEANS THE MEDICAL CANNABIS
3430-COMPASSIONATE USE FUND.
3431-
3432- (B) THERE IS A MEDICAL CANNABIS COMPASSIONATE USE FUND.
3433-
3434- (B) (C) (1) THE DIVISION ADMINISTRATION SHALL:
3435-
3436- (I) ADMINISTER THE COMPASSIONATE USE FUND; AND
3437-
3438- (II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION ,
3439-ESTABLISH FEES IN AN AMOUNT NECESSARY TO PROVIDE REVENUES FOR THE
3440-PURPOSES OF THE COMPASSIONATE USE FUND.
3441-
3442- (2) THE DIVISION ADMINISTRATION MAY NOT IMPOSE THE F EES
3443-ESTABLISHED UNDER PA RAGRAPH (1)(II) OF THIS SUBSECTION O N A LICENSED
3444-MEDICAL CANNABIS GRO WER, PROCESSOR, OR DISPENSARY DURING THE 2–YEAR
3445-PERIOD IMMEDIATELY F OLLOWING THE ISSUANC E OF A LICENSE BEFORE THE
3446-GROWER, PROCESSOR, OR DISPENSARY IS AN OPERATIONAL CANNABIS LICENSEE
3447-UNDER THIS TITLE.
3448-
3449- (C) (D) THE PURPOSE OF THE COMPASSIONATE USE FUND IS TO
3450-PROVIDE ACCESS TO CA NNABIS FOR INDIVIDUA LS ENROLLED IN THE MARYLAND
3451-MEDICAL ASSISTANCE PROGRAM OR IN THE VETERANS AFFAIRS MARYLAND
3452-HEALTH CARE SYSTEM, INCLUDING ACCESS TO , AT A REDUCED COST :
3453-
3454- (1) AN ASSESSMENT OF THE PATIENT’S MEDICAL HISTORY AN D
3455-CURRENT MEDICAL COND ITION; AND
3456-
3457- (2) MEDICAL CANNABIS FRO M A LICENSED DISPENS ARY.
3458- WES MOORE, Governor Ch. 254
3459-
3460-– 77 –
3461- (D) (E) (1) THE COMPASSIONATE USE FUND IS A SPECIAL ,
3462-NONLAPSING FUND THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND
3463-PROCUREMENT ARTICLE.
3464-
3465- (2) THE STATE TREASURER SHALL HOLD THE COMPASSIONATE USE
3466-FUND SEPARATELY , AND THE COMPTROLLER SHALL ACC OUNT FOR THE
3467-COMPASSIONATE USE FUND.
3468-
3469- (3) THE COMPASSIONATE USE FUND SHALL BE INVESTE D AND
3470-REINVESTED IN THE SA ME MANNER AS OTHER STATE FUNDS, AND ANY INVESTMENT
3471-EARNINGS SHALL BE RE TAINED TO THE CREDIT OF THE COMPASSIONATE USE
3472-FUND.
3473-
3474- (F) THE FUND CONSISTS OF :
3475-
3476- (1) FEES ESTABLISHED UND ER SUBSECTION (C)(1)(II) OF THIS
3477-SECTION;
3478-
3479- (2) FINES ASSESSED BY TH E DIVISION ADMINISTRATION UNDER THIS
3480-TITLE;
3481-
3482- (3) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND;
3483-
3484- (4) INTEREST EARNINGS ; AND
3485-
3486- (5) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR
3487-THE BENEFIT OF THE FUND.
3488-
3489- (G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND
3490-IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED.
3491-
3492- (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO
3493-THE FUND.
3494-
3495- (4) (H) THE COMPASSIONATE USE FUND SHALL BE SUBJECT TO AN
3496-AUDIT BY THE OFFICE OF LEGISLATIVE AUDITS AS PROVIDED FO R IN § 2–1220 OF
3497-THE STATE GOVERNMENT ARTICLE.
3498-
3499- (5) (I) THE COMPTROLLER SHALL PAY OUT MONEY FROM THE
3500-COMPASSIONATE USE FUND AS DIRECTED BY T HE DIVISION ADMINISTRATION .
3501-
3502- (E) (J) NO PART OF THE COMPASSIONATE USE FUND MAY REVERT OR BE
3503-CREDITED TO:
3504- Ch. 254 2023 LAWS OF MARYLAND
3505-
3506-– 78 –
3507- (1) THE GENERAL FUND OF THE STATE; OR
3508-
3509- (2) ANY OTHER SPECIAL FU ND OF THE STATE.
3510-
3511- (F) (K) EXPENDITURES FROM THE COMPASSIONATE USE FUND MAY BE
3512-MADE ONLY IN ACCORDA NCE WITH TH E STATE BUDGET .
3513-
3514- (G) (L) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS TO
3515-CARRY OUT THIS SECTI ON.
3516-
3517-SUBTITLE 7. CANNABIS RESEARCH AND DEVELOPMENT .
3518-
3519-36–701.
3520-
3521- (A) (1) AN INSTITUTION OF HIG HER EDUCATION , A RELATED MEDICAL
3522-FACILITY, OR AN AFFILIATED BIO MEDICAL RESEARCH FIR M MAY REGISTER WITH
3523-THE DIVISION ADMINISTRATION TO PURCHASE CANNABIS FOR THE PURPOSE OF
3524-CONDUCTING A BONA FIDE RESEARCH PROJEC T RELATING TO THE US ES,
3525-PROPERTIES, OR COMPOSITION OF CA NNABIS.
3526-
3527- (2) A REGISTRATION FILED U NDER PARAGRAPH (1) OF THIS
3528-SUBSECTION SHALL INC LUDE:
3529-
3530- (I) THE NAME OF THE PRIM ARY RESEARCHER ;
3531-
3532- (II) THE EXPECTED DURATIO N OF THE RESEARCH PR OJECT;
3533-AND
3534-
3535- (III) THE PRIMARY OBJECTIV ES OF THE RESEARCH PROJ ECT.
3536-
3537- (3) A REGISTRATION FILED U NDER PARAGRAPH (1) OF THIS
3538-SUBSECTION SHALL REM AIN VALID UNTIL THER E IS A CHANGE IN THE RESEARCH
3539-PROJECT OR A WITHDRA WAL OF THE REGISTRAT ION.
3540-
3541- (B) AN ACADEMIC RESEARCH REPRESENTATIVE MAY P URCHASE CANNABIS
3542-FROM A LICENSED DISP ENSARY OR A SUPPLIER OF CAN NABIS THAT IS LICENS ED BY
3543-ANY FEDERAL AGENCY T O SUPPLY CANNABIS TO RESEARCHERS .
3544-
3545- (C) AN ACADEMIC RESEARCH REPRESENTATIVE MAY N OT BE PENALIZED OR
3546-ARRESTED UNDER STATE LAW FOR ACQUIRI NG, POSSESSING, OR DISPENSING
3547-CANNABIS, PRODUCTS CONTAINING CANNABIS, RELATED SUPPLIES , OR
3548-EDUCATIONAL MATERIAL S FOR USE IN A BONA FIDE RESEARCH PROJEC T RELATING
3549-TO THE USES, PROPERTIES, OR COMPOSITION OF CA NNABIS.
3550- WES MOORE, Governor Ch. 254
3551-
3552-– 79 –
3553- (D) THE DIVISION ADMINISTRATION MAY ADOPT REGULATION S TO
3554-IMPLEMENT THIS SECTI ON.
3555-
3556-36–702.
3557-
3558- (A) THE DIVISION ADMINISTRATION MAY REGISTER AN ENTI TY TO GROW,
3559-PROCESS, TEST, AND TRANSFER CANNABI S FOR THE PURPOSES O F RESEARCH AND
3560-DEVELOPMENT AS PROVI DED IN SUBSECTION (B) OF THIS SECTION.
3561-
3562- (B) A REGISTRATION ISSUED UNDER SUBSECTION (A) OF THIS SECTION
3563-AUTHORIZES THE REGIS TRANT ONLY TO:
3564-
3565- (1) TEST CHEMICAL POTENC Y AND COMPOSITION LE VELS;
3566-
3567- (2) CONDUCT CLINICAL INV ESTIGATIONS OF CANNA BIS–DERIVED
3568-MEDICINAL PRODUCTS ;
3569-
3570- (3) CONDUCT RESEARCH ON THE EFFICACY AND SAF ETY OF
3571-ADMINISTERING CANNAB IS AS PART OF MEDICA L TREATMENT ;
3572-
3573- (4) CONDUCT GENOMIC , HORTICULTURAL , OR AGRICULTURAL
3574-RESEARCH; AND
3575-
3576- (5) CONDUCT RESEARCH ON CANNABIS–AFFILIATED PRODUCTS OR
3577-SYSTEMS.
3578-
3579- (C) TO OBTAIN A RESEARCH AND DEVELOPMENT REGI STRATION, AN
3580-APPLICANT SHALL SUBM IT TO THE DIVISION ADMINISTRATION :
3581-
3582- (1) AN APPLICATION FEE IN AN AM OUNT TO BE DETERMINE D BY THE
3583-DIVISION ADMINISTRATION ; AND
3584-
3585- (2) AN APPLICATION DEVEL OPED BY THE DIVISION
3586-ADMINISTRATION .
3587-
3588- (D) AN APPLICANT FOR A RE SEARCH AND DEVELOPME NT REGISTRATION
3589-MUST MEET THE REGIST RATION STANDARDS AND REQUIREMENTS ESTABLI SHED BY
3590-THE DIVISION ADMINISTRATION .
3591-
3592- (E) (1) A RESEARCH AND DEVELOP MENT REGISTRATION IS VALID FOR AN
3593-INITIAL TERM OF 2 YEARS.
3594-
3595- (2) A RESEARCH AND DEVELOPM ENT REGISTRATION IS VALID FOR 2
3596-YEARS ON RENEWAL . Ch. 254 2023 LAWS OF MARYLAND
3597-
3598-– 80 –
3599-
3600- (F) A RESEARCH AND DEVELOP MENT REGISTRANT MAY TRANSFER, BY SALE
3601-OR DONATION , CANNABIS GROWN WITHI N ITS OPERATION ONLY TO OTHER
3602-RESEARCH AND DEVELOP MENT REGISTRANTS .
3603-
3604- (G) A RESEARCH AND DEVELOPMENT REGI STRANT MAY CONTRACT TO
3605-PERFORM RESEARCH IN CONJUNCTION WITH A P UBLIC HIGHER EDUCATI ON
3606-RESEARCH INSTITUTION OR ANOTHER RESEARCH AND DEVELOPMENT REGI STRANT.
3607-
3608-SUBTITLE 8. REPORTS.
3609-
3610-36–801.
3611-
3612- (A) ON OR BEFORE JUNE 30 EACH YEAR, EACH ENTITY LICENSED OR
3613-REGISTERED UNDER THI S TITLE CANNABIS LICENSEE AN D CANNABIS REGISTRAN T
3614-SHALL REPORT TO THE DIVISION ON:
3615-
3616- (A) ON OR BEFORE AUGUST 1 EACH YEAR, EACH CANNABIS LICENS EE AND
3617-CANNABIS REGISTRANT SHALL REPORT TO THE ADMINISTRATION INFORM ATION
3618-DETERMINED BY THE ADMINISTRATION TO BE NECESSARY TO CONTINU E TO ASSESS
3619-THE NEED FOR REMEDIA L MEASURES IN THE CA NNABIS INDUSTRY AND MARKET,
3620-INCLUDING:
3621-
3622- (1) THE NUMBER OF MINORI TY AND WOMEN OWNERS OF THE
3623-CANNABIS LICENSEE OR CANNABIS REGISTRANT ;
3624-
3625- (2) THE OWNERSHIP INTEREST O F ANY MINORITY AND W OMEN
3626-OWNERS OF THE CANNAB IS LICENSEE OR CANNA BIS REGISTRANT ; AND
3627-
3628- (3) THE NUMBER OF MINORI TY AND WOMEN EMPLOYE ES OF THE
3629-CANNABIS LICENSEE OR CANNABIS REGISTRANT ;
3630-
3631- (4) A LIST OF THE CANNAB IS LICENSEE’S OR CANNABIS REGISTRANT ’S
3632-EXPENDITURES FOR THE PRIOR STATE FISCAL YEAR ; AND
3633-
3634- (5) FOR EACH EXPENDITURE :
3635-
3636- (I) A DESCRIPTION OF THE WORK PERFORMED ;
3637-
3638- (II) THE DOLLAR VALUE OF THE EXPENDITURE ;
3639-
3640- (III) WHETHER THE WORK WAS PERFORMED BY THE CAN NABIS
3641-LICENSEE OR CANNABIS REGIST RANT OR A CONTRACTOR OR SUBCONTRACTOR ; AND WES MOORE, Governor Ch. 254
3642-
3643-– 81 –
3644-
3645- (IV) IF THE WORK WAS PERF ORMED BY A CONTRACTO R OR
3646-SUBCONTRACTOR , THE NAME OF THE ENTI TY THAT PERFORMED TH E WORK.
3647-
3648- (B) ALL DATA PROVIDED BY A CANNABIS LICENSEE OR CANNABIS
3649-REGISTRANT UNDER SUBSECTION (A)(4) AND (5) OF THIS SECTION:
3650-
3651- (1) SHALL CONSTITUTE CON FIDENTIAL COMMERCIAL AND FINANCIAL
3652-INFORMATION AND BE T REATED AS CONFIDENTI AL BY THE ADMINISTRATION AND
3653-THE STATE; AND
3654-
3655- (2) MAY BE USED ONLY FOR THE PURPOSES AUTHORI ZED UNDER THIS
3656-SECTION AND MAY ONLY BE DISCLOSED TO THE PUB LIC IN AN ANONYMIZED OR
3657-AGGREGATED FORMAT .
3658-
3659- (C) ON OR BEFORE AUGUST 15 EACH YEAR, THE ADMINISTRATION SHALL
3660-PROVIDE THE DATA COL LECTED UNDER SUBSECT ION (A) OF THIS SECTION TO T HE
3661-CERTIFICATION AGENCY DESIGNATED BY TH E BOARD OF PUBLIC WORKS UNDER §
3662-14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
3663-
3664- (B) (D) ON OR BEFORE JANUARY 1 EACH YEAR , THE DIVISION
3665-ADMINISTRATION SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE
3666-WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE INFORMATION
3667-REPORTED UNDER SUBSE CTION (A) (A)(1) THROUGH (3) OF THIS SECTION.
3668-
3669-36–802.
3670-
3671- ON OR BEFORE JANUARY 1 EACH ODD–NUMBERED YEAR, THE DIVISION
3672-ADMINISTRATION SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE
3673-WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON:
3674-
3675- (1) THE AMOUNT OF CANNAB IS CULTIVATED , PROCESSED, AND
3676-DISPENSED BY STANDAR D AND MICRO LICENSEE S; AND
3677-
3678- (2) WHETHER THE SUPPLY O F CANNABIS IS ADEQUATE TO MEET THE
3679-DEMAND FOR CANNABIS AND CANNABIS PRODUCT S.
3680-
3681-36–803.
3682-
3683- THE DIVISION ADMINISTRATION SHALL PUBLISH THE FO LLOWING DATA ,
3684-ORGANIZED BY MONTH , ON A ROLLING BASIS A ND ON A PUBLICLY ACC ESSIBLE PART
3685-OF THE COMMISSION’S ADMINISTRATION ’S WEBSITE:
3686- Ch. 254 2023 LAWS OF MARYLAND
3687-
3688-– 82 –
3689- (1) THE NUMBER OF PATIEN TS, CAREGIVERS, AND PROVIDERS
3690-CERTIFIED UNDER THIS TITLE;
3691-
3692- (2) THE WHOLESALE AND RE TAIL SALES OF MEDICA L AND ADULT–USE
3693-CANNABIS, MEASURED BY REVENUE AND VOLUME ; AND
3694-
3695- (3) THE MEDIAN CONSUMER PRICE FOR CANNABIS AND CANNABIS
3696-PRODUCTS.
3697-
3698-SUBTITLE 9. ADVERTISING.
3699-
3700-36–901.
3701-
3702- (A) IN THIS SUBTITLE , “ADVERTISEMENT ” MEANS THE PUBLICATIO N,
3703-DISSEMINATION , OR CIRCULATION OF AN Y AUDITORY, VISUAL, DIGITAL, ORAL, OR
3704-WRITTEN MATTER WHICH IS DIRECTLY OR INDIR ECTLY CALCULATED TO INDUCE THE
3705-SALE OF CANNABIS OR ANY CANNABIS–RELATED PRODUCT OR S ERVICE.
3706-
3707- (B) “ADVERTISEMENT ” DOES NOT INCLUDE PAC KAGING OR LABELING .
3708-
3709-36–902.
3710-
3711- (A) ADVERTISEMENTS AN ADVERTISEMENT FOR MEDICAL CANNABIS AND
3712-MEDICAL CANNABIS PRODUCTS OR MEDICAL CANNABIS –RELATED SERVICES THA T
3713-MAKE MAKES THERAPEUTIC OR MEDIC AL CLAIMS SHALL :
3714-
3715- (1) BE SUPPORTED BY SUBSTANTIAL CLINICAL EVIDENCE OR
3716-SUBSTANTIAL CLINICAL DATA COMPETENT AND RELIAB LE SCIENTIFIC EVIDEN CE;
3717-AND
3718-
3719- (2) INCLUDE INFORMATION ON THE MOST SIGNIFICANT SERIOUS AND
3720-MOST COMMON SIDE EFFECTS OR RISK S ASSOCIATED WITH TH E USE OF CANNABIS .
3721-
3722- (B) ADVERTISEMENTS AN ADVERTISEMENT FOR MEDICAL CANNABIS OR
3723-MEDICAL CANNABIS PRO DUCTS SHALL INCLUDE A STATEMENT THAT THE PRODUCT
3724-IS FOR USE ONLY BY A QUALIFYING PATIENT .
3725-
3726-36–902. 36–903.
3727-
3728- (A) (1) THIS SUBSECTION DOES NOT APPLY TO AN ADVE RTISEMENT
3729-PLACED ON PROPERTY O WNED OR LEASED BY A DISPENSARY, GROWER, OR
3730-PROCESSOR.
3731- WES MOORE, Governor Ch. 254
3732-
3733-– 83 –
3734- (2) AN ADVERTISEMENT FOR A CANNABIS LICENSEE , CANNABIS
3735-PRODUCT, OR CANNABIS–RELATED SERVICE MAY NOT:
3736-
3737- (1) MAKE A STATEMENT THA T IS FALSE OR MISLEA DING IN A
3738-MATERIAL WAY OR IS O THERWISE A VIOLATION OF TITLE 13, SUBTITLE 3 OF THE
3739-COMMERCIAL LAW ARTICLE;
3740-
3741- (I) VIOLATE TITLE 13, SUBTITLE 3 OF THE COMMERCIAL LAW
3742-ARTICLE;
3743-
3744- (II) DIRECTLY OR INDIRECT LY TARGET INDIVIDUAL S UNDER
3745-THE AGE OF 21 YEARS;
3746-
3747- (2) (III) CONTAIN A DESIGN , AN ILLUSTRATION , A PICTURE, OR A
3748-REPRESENTATION THAT :
3749-
3750- (I) 1. TARGETS OR IS ATTRAC TIVE TO MINORS , INCLUDING
3751-A CARTOON CHARACTER , A MASCOT, OR ANY OTHER DEPICTI ON THAT IS COMMONLY
3752-USED TO MARKET PRODU CTS TO MINORS;
3753-
3754- (II) 2. DISPLAYS THE USE OF CANNABIS, INCLUDING THE
3755-CONSUMPTION , SMOKING, OR VAPING OF CANNABI S;
3756-
3757- (III) 3. ENCOURAGES OR PROMOT ES CANNABIS FOR USE AS
3758-AN INTOXICANT; OR
3759-
3760- (I) 4. IS OBSCENE;
3761-
3762- (3) (IV) ENGAGE IN ADVERTISIN G BY MEANS OF TELEVI SION, RADIO,
3763-INTERNET, MOBILE APPLICATION , SOCIAL MEDIA , OR OTHER ELECTRONIC
3764-COMMUNICATION , OR PRINT PUBLICATION , UNLESS AT LEAST 85% OF THE
3765-AUDIENCE IS REASONAB LY EXPECTED TO BE AT LEAST 21 YEARS OLD AS
3766-DETERMINED BY RELIAB LE AND CURRENT AUDIE NCE COMPOSITION DATA ; OR
3767-
3768- (4) (V) ENGAGE IN ADVERTISIN G BY MEANS OF PLACIN G AN
3769-ADVERTISEMENT ON THE SIDE OF A BUILDING O R ANOTHER PUBLICLY V ISIBLE
3770-LOCATION OF ANY FORM , INCLUDING A SIGN , A POSTER, A PLACARD, A DEVICE, A
3771-GRAPHIC DISPLAY , AN OUTDOOR BILLBOARD, OR A FREESTANDING SIGNBOARD.
3772-
3773- (B) (1) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH ,
3774-EACH CANNABIS–RELATED WEBSITE OWNED, MANAGED, OR OPERATED BY A
3775-CANNABIS LICENSEE SHALL EMPLOY A NEUTR AL AGE–SCREENING MECHANISM
3776-THAT VERIFIES THAT T HE USER IS AT LEAST 21 YEARS OLD, INCLUDING BY USING A N
3777-AGE–GATE, AGE–SCREEN, OR AGE VERIFICATION MECHANISM BEFORE THE USER Ch. 254 2023 LAWS OF MARYLAND
3778-
3779-– 84 –
3780-MAY ACCESS OR VIEW A NY CONTENT AND BEFOR E THE WEBSITE MAY CO LLECT THE
3781-USER’S ADDRESS, E–MAIL ADDRESS, PHONE NUMBER , OR CONTACT INFORMATI ON TO
3782-DISSEMINATE ADVERTIS EMENTS.
3783-
3784- (II) IF A WEBSITE IS APPRO PRIATE FOR A QUALIFY ING PATIENT
3785-WHO IS UNDER THE AGE OF 21 YEARS, THE WEBSITE SHALL PR OVIDE AN
3786-ALTERNATIVE SCREENIN G MECHANISM FOR THE QUALIFYING PATIENT .
3787-
3788- (2) AN ADVERTISEMENT PLAC ED ON SOCIAL MEDIA O R A MOBILE
3789-APPLICATION SHALL IN CLUDE A NOTIFICATION THAT AN INDIVIDUAL M UST BE AT
3790-LEAST 21 YEARS OLD TO VIEW TH E CONTENT.
3791-
3792- (3) THE PROVISIONS OF THI S SUBTITLE APPLICABL E TO CANNABIS
3793-LICENSEES MAY NOT BE AVOIDED BY HIRING OR CONTRACTING WITH A
3794-THIRD–PARTY, OR OUTSO URCING ADVERTISEMENT S THAT DO NOT COMPLY WITH
3795-THIS SUBTITLE.
3796-
3797- (4) A CANNABIS LICENSEE MA Y NOT ALLOW THE USE OF THE
3798-LICENSEE’S TRADEMARKS , BRANDS, NAMES, LOCATIONS, OR OTHER
3799-DISTINGUISHING CHARA CTERISTICS FOR THIRD –PARTY USE FOR ADVERT ISEMENTS
3800-THAT DO NOT COMPLY WITH THIS SUB TITLE.
3801-
3802- (C) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS TO
3803-ESTABLISH:
3804-
3805- (1) PROCEDURES FOR THE E NFORCEMENT OF THIS S ECTION; AND
3806-
3807- (2) A PROCESS FOR AN IND IVIDUAL TO VOLUNTARI LY SUBMIT AN
3808-ADVERTISEMENT TO THE DIVISION FOR AN ADVISORY OPINION ON WHETHER THE
3809-ADVERTISEMENT COMPLI ES WITH THE RESTRICT IONS ON ADVERTISEMEN TS FOR
3810-CANNABIS, CANNABIS PRODUCTS , EDIBLE CANNABIS PROD UCTS, AND
3811-CANNABIS–RELATED SERVICES .
3812-
3813-SUBTITLE 10. RESPONSIBLE VENDOR TRAINING PROGRAM.
3814-
3815-36–1001.
3816-
3817- (A) IF A PERSON WOULD LIK E TO TO OFFER A RESPONSIBLE MEDICAL OR
3818-ADULT–USE CANNABIS VENDOR , SERVER, AND SELLER TRAINING PROGRAM, THE A
3819-PERSON MUST SHALL SUBMIT AN APPLICATIO N TO THE DIVISION ADMINISTRATION .
3820- WES MOORE, Governor Ch. 254
3821-
3822-– 85 –
3823- (B) THE DIVISION ADMINISTRATION SHALL APPROVE THE AP PLICATION IF
3824-THE PROPOSED TRAININ G PROGRAM MEETS THE MINIMUM EDUCATIONAL
3825-STANDARDS ESTABLISHE D UNDER SUBSECTION (C) OF THIS SECTION.
3826-
3827- (C) AT A MINIMUM, A TRAINING PROGRAM M UST:
3828-
3829- (1) BE TAUGHT IN A CLASS ROOM OR VIRTUAL SETT ING FOR AT LEAST
3830-A 2–HOUR PERIOD ;
3831-
3832- (2) ESTABLISH PROGRAM ST ANDARDS, INCLUDING CERTIFICAT ION
3833-AND RECERTIFICATION REQUIREMENTS , RECORD KEEPING , TESTING AND
3834-ASSESSMENT PROTOCOLS , AND EFFECTIVENESS EV ALUATIONS; AND
3835-
3836- (3) PROVIDE A CORE CURRI CULUM OF RELEVANT ST ATUTORY AND
3837-REGULATORY PROVISION S, WHICH SHALL INCLUDE :
3838-
3839- (I) INFORMATION ON REQUI RED LICENSES , AGE
3840-REQUIREMENTS , PATIENT REGISTRY CAR DS ISSUED BY THE DIVISION
3841-ADMINISTRATION , MAINTENANCE OF RECOR DS, PRIVACY ISSUES, AND UNLAWFUL
3842-ACTS;
3843-
3844- (II) ADMINISTRATIVE AND CRIMINAL LIABILI TY AND LICENSE
3845-AND COURT SANCTIONS ;
3846-
3847- (III) STATUTORY AND REGULA TORY REQUIREMENTS FO R
3848-EMPLOYEES AND OWNERS ;
3849-
3850- (IV) STATUTORY AND REGULA TORY REQUIREMENTS RE LATED
3851-TO CANNABIS SALE , TRANSFER, AND DELIVERY ;
3852-
3853- (V) ACCEPTABLE FORMS OF IDENTIFICATION , INCLUDING
3854-PATIENT AND CAREGIVE R IDENTIFICATION CAR DS;
3855-
3856- (VI) STATE AND LOCAL LICEN SING AND ENFORCEMENT ; AND
3857-
3858- (VII) INFORMATION ON SERVI NG SIZE, THC AND CANNABINOID
3859-POTENCY, AND IMPAIRMENT .
3860-
3861-36–1002.
3862-
3863- THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS ESTABLISHING
3864-THE RESPONSIBLE VEND OR TRAINING PROGRAM AND THE MINIMUM STAN DARDS
3865-FOR THE PROGRAM .
3866- Ch. 254 2023 LAWS OF MARYLAND
3867-
3868-– 86 –
3869-36–1003.
3870-
3871- A PROVIDER OF AN APPRO VED TRAINING PROGRAM SHALL:
3872-
3873- (1) MAINTAIN ITS TRAININ G RECORDS AT ITS PRI NCIPAL PLACE OF
3874-BUSINESS FOR AT LEAST 4 YEARS; AND
3875-
3876- (2) MAKE THE RECORDS AVA ILABLE FOR INSPECTIO N BY THE
3877-DIVISION ADMINISTRATION .
3878-
3879-SUBTITLE 11. PROHIBITED ACTS.
3880-
3881-36–1101.
3882-
3883- (A) A CANNABIS LICENSEE MA Y NOT SELL , TRANSFER, OR DELIVER
3884-CANNABIS OR CANNABIS PRODUCTS UNLESS THE LICENSEE VERIFIES BY MEANS OF
3885-A VALID DRIVER ’S LICENSE OR OTHER G OVERNMENT –ISSUED PHOTO
3886-IDENTIFICATION CONTA INING THE BEARER ’S DATE OF BIRTH THAT :
3887-
3888- (1) FOR ADULT–USE CANNABIS , THE CONSUMER IS AT L EAST 21
3889-YEARS OLD; OR
3890-
3891- (2) FOR MEDICAL CANNABIS , THE PATIENT OR CAREGIVER IS :
3892-
3893- (I) REGISTERED WITH THE DIVISION ADMINISTRATION ; AND
3894-
3895- (II) AT LEAST 18 YEARS OLD.
3896-
3897- (B) (1) (I) A EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
3898-PARAGRAPH , A LICENSEE THAT SELLS , TRANSFERS, OR DELIVERS CANNABIS OR
3899-CANNABIS P RODUCTS IN VIOLATION OF SUBSECTION (A) OF THIS SECTION IS
3900-SUBJECT TO A CIVIL P ENALTY OF:
3901-
3902- (I) 1. $500 FOR A FIRST VIOLATIO N;
3903-
3904- (II) 2. $1,000 FOR A SECOND VIOLATI ON OCCURRING
3905-WITHIN 24 MONTHS AFTER THE FIR ST VIOLATION; AND
3906-
3907- (III) 3. $5,000 FOR EACH SUBSEQUENT VIOL ATION
3908-OCCURRING WITHIN 24 MONTHS AFTER THE IMM EDIATELY PRECEDING V IOLATION.
3909-
3910- (II) A VIOLATION OF SUBSECT ION (A) OF THIS SECTION THAT
3911-OCCURS MORE THAN 24 MONTHS AFTER THE IMM EDIATELY PRECEDING V IOLATION
3912-SHALL BE TREATED AS A FIRST VIOLATION. WES MOORE, Governor Ch. 254
3913-
3914-– 87 –
3915-
3916- (2) THE DIVISION ADMINISTRATION MAY DENY A CANNABIS LICENSE
3917-TO AN APPLICANT , REPRIMAND A CANNABIS LICENSEE, OR SUSPEND OR REVOKE A
3918-CANNABIS LICENSE IF THE APPLICANT OR LIC ENSEE VIOLATES SUBSE CTION (A) OF
3919-THIS SECTION TWO OR MORE TIMES IN A 24–MONTH PERIOD .
3920-
3921- (3) IN A HEARING FOR AN A LLEGED VIOLATION OF THIS SECTION, IT
3922-IS A DEFENSE THAT AN AGENT OF THE DEFENDA NT EXAMINED THE CONS UMER’S,
3923-PATIENT’S, OR CAREGIVER ’S DRIVER’S LICENSE OR OTHER V ALID IDENTIFICATION
3924-ISSUED BY A GOVERNME NTAL UNIT TH AT POSITIVELY IDENTI FIED THE CONSUMER ,
3925-PATIENT, OR CAREGIVER AS MEET ING THE MINIMUM AGE SPECIFIED IN SUBSECT ION
3926-(A) OF THIS SECTION.
3927-
3928- (C) (1) A CANNABIS LICENSEE MA Y NOT:
3929-
3930- (I) SELL, TRANSFER, OR DELIVER CANNABIS TO AN INDIVIDUAL
3931-WHO IS VISIBLY INTOX ICATED; OR
3932-
3933- (II) OFFER CANNABIS OR CA NNABIS PRODUCTS AS A PRIZE,
3934-PREMIUM, OR CONSIDERATION FOR A LOTTERY, CONTEST, GAME OF CHANCE , GAME
3935-OF SKILL, OR COMPETITION OF AN Y KIND; OR
3936-
3937- (III) CONDUCT DIRECT –TO–CONSUMER INTERNET SALES OF
3938-ADULT–USE CANNABIS ON OR BEFORE JULY 1, 2025.
3939-
3940- (2) A CANNABIS LICENSEE TH AT VIOLATES PARAGRAP H (1) OF THIS
3941-SUBSECTION IS SUBJEC T TO A FINE NOT EXCE EDING $1,000, SUSPENSION OR
3942-REVOCATION OF A LICE NSE, OR BOTH.
3943-
3944- (D) (1) A DISPENSARY MAY NOT :
3945-
3946- (I) PACKAGE OR REPACKAGE CANNABIS OR CANNABIS
3947-PRODUCTS;
3948-
3949- (II) TRANSFORM CANNABIS O R CANNABIS PRODUCTS INTO
3950-ANOTHER PRODUCT OR A N EXTRACT; OR
3951-
3952- (III) WRAP, ROLL, OR OTHERWISE ENCASE CANNABIS FOR THE
3953-PURPOSE OF SMOKING T HE CANNABIS.
3954-
3955- (2) A DISPENSARY THAT VIOL ATES PARAGRAPH (1) OF THIS
3956-SUBSECTION IS SUBJEC T TO A FINE NOT EXCE EDING $1,000, SUSPENSION OR
3957-REVOCATION OF A LICE NSE, OR BOTH.
3958- Ch. 254 2023 LAWS OF MARYLAND
3959-
3960-– 88 –
3961-36–1102.
3962-
3963- (A) THIS TITLE MAY NOT BE CONSTRUED TO AUTHORI ZE AN INDIVIDUAL TO :
3964-
3965- (1) OPERATE, NAVIGATE, OR BE IN ACTUAL PHYS ICAL CONTROL OF A
3966-MOTOR VEHICLE , AIRCRAFT, OR BOAT WHILE UNDER THE INFLUENCE OF CAN NABIS;
3967-
3968- (2) USE CANNABIS IN A PU BLIC PLACE;
3969-
3970- (3) USE CANNABIS IN A MO TOR VEHICLE;
3971-
3972- (4) EXCEPT AS PROVIDED I N SUBSECTION (B) OF THIS SECTION ,
3973-SMOKE CANNABIS ON A PRIVATE PROPERTY THA T:
3974-
3975- (I) 1. IS RENTED FROM A LAN DLORD; AND
3976-
3977- 2. IS SUBJECT TO A POLI CY THAT PROHIBITS TH E
3978-SMOKING OF CANNABIS ON THE PROPERTY ; OR
3979-
3980- (II) IS SUBJECT TO A POLI CY THAT PROHIBITS TH E SMOKING OF
3981-CANNABIS ON THE PROP ERTY OF AN ATTACHED DWELLING ADOPTED BY ONE OF THE
3982-FOLLOWING ENTITIES :
3983-
3984- 1. THE BOARD OF DIRECTO RS OF THE COUNCIL OF UNIT
3985-OWNERS OF A CONDOMIN IUM REGIME; OR
3986-
3987- 2. THE GOVERNING BODY O F A HOMEOWNERS
3988-ASSOCIATION; OR
3989-
3990- (5) POSSESS CANNABIS , INCLUDING CANNABIS P RODUCTS, IN A
3991-LOCAL DETENTION FACILITY , COUNTY JAIL, STATE PRISON, REFORMATORY , OR
3992-OTHER CORRECTIONAL F ACILITY, INCLUDING A FACILITY FOR THE DETENTION OF
3993-JUVENILE OFFENDERS .
3994-
3995- (B) THE PROVISIONS OF SUB SECTION (A)(4) OF THIS SECTION DO N OT
3996-APPLY TO VAPORIZING CANNABIS.
3997-
3998-36–1103.
3999-
4000- (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
4001-INDICATED.
4002-
4003- (2) “HEMP” HAS THE MEANING STAT ED IN § 14–401 OF THE
4004-AGRICULTURE ARTICLE. WES MOORE, Governor Ch. 254
4005-
4006-– 89 –
4007-
4008- (3) “TETRAHYDROCANNABINOL ” MEANS:
4009-
4010- (I) ANY TETRAHYDROCANNAB INOL, INCLUDING
4011-DELTA–8–TETRAHYDROCANNABINOL , DELTA–9–TETRAHYDROCANNABINOL , AND
4012-DELTA–10–TETRAHYDROCANNABINOL , REGARDLESS OF HOW DE RIVED;
4013-
4014- (II) ANY OTHER CANNABINOI D, EXCEPT CANNABIDIOL T HAT THE
4015-ADMINISTRATION DETERM INES TO CAUSE INTOXI CATION; AND
4016-
4017- (III) ANY OTHER C HEMICALLY SIMILAR CO MPOUND, SUBSTANCE,
4018-DERIVATIVE, OR ISOMER OF TETRAHY DROCANNABINOL , AS IDENTIFIED BY THE
4019-ADMINISTRATION .
4020-
4021- (4) “TINCTURE” MEANS A SOLUTION THA T IS:
4022-
4023- (I) DISSOLVED IN ALCOHOL , GLYCERIN, OR VEGETABLE OIL ;
4024-AND
4025-
4026- (II) DISTRIBUTED IN A D ROPPER BOTTLE OF 4 OUNCES OR LESS .
4027-
4028- (A) (B) (1) A PERSON MAY NOT SELL OR DISTRIBUTE A PROD UCT
4029-INTENDED FOR HUMAN C ONSUMPTION OR INHALA TION THAT CONTAINS M ORE THAN
4030-0.5 MILLIGRAMS OF TETRAH YDROCANNABINOL PER S ERVING OR 2.5 MILLIGRAMS
4031-OF TETRAHYDROCANNABI NOL PER PACKAGE UNLE SS THE PERSON IS LIC ENSED
4032-UNDER § 36–401 OF THIS TITLE AND TH E PRODUCT COMPLIES W ITH THE:
4033-
4034- (I) MANUFACTURING STANDA RDS ESTABLISHED UNDE R §
4035-36–203 OF THIS TITLE;
4036-
4037- (II) LABORATORY TESTING S TANDARDS ESTABLISHED UNDER §
4038-36–203 OF THIS TITLE; AND
4039-
4040- (III) PACKAGING AND LABELI NG STANDARDS ESTABLI SHED
4041-UNDER § 36–203 OF THIS TITLE.
4042-
4043- (2) A PERSON MAY NOT SELL OR DISTRIBUTE A PROD UCT DESCRIBED
4044-UNDER PARAGRAPH (1) OF THIS SUBSECTION T O AN INDIVIDUAL UNDE R THE AGE OF
4045-21 YEARS.
4046-
4047- (B) (C) A PERSON MAY NOT SELL OR DISTRIBUTE A CANNABI NOID
4048-PRODUCT THAT IS NOT DERIVED FROM NATURAL LY OCCURRING BIOLOGI CALLY
4049-ACTIVE CHEMICAL CONS TITUENTS. Ch. 254 2023 LAWS OF MARYLAND
4050-
4051-– 90 –
4052-
4053- (D) (1) NOTWITHSTANDING SUBSE CTION (B) OF THIS SECTION AND
4054-SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IT IS NOT A VIOLATIO N OF THIS
4055-SECTION FOR A PERSON TO SELL OR DISTRIBUT E A HEMP–DERIVED TINCTURE
4056-INTENDED FOR HUMAN C ONSUMPTION THAT CONT AINS:
4057-
4058- (I) A RATIO OF CANNABIDI OL TO TETRAHYDROCANN ABINOL OF
4059-AT LEAST 15 TO 1; AND
4060-
4061- (II) 2.5 MILLIGRAMS OR LESS O F TETRAHYDROCANNABIN OL PER
4062-SERVING AND 100 MILLIGRAMS OR LESS O F TETRAHYDROCANNABIN OL PER
4063-PACKAGE.
4064-
4065- (2) TO SELL OR DISTRIBUTE A HEMP–DERIVED TINCTURE UND ER THIS
4066-SUBSECTION, A PERSON MUST PROVID E, AS REQUIRED BY THE ADMINISTRATION ,
4067-TINCTURE SAMPLES FOR THE PURPOSE OF TESTI NG TO DETERMINE CHEMICAL
4068-POTENCY AND COMPOSIT ION LEVELS AND TO DE TECT AND QUANTIFY
4069-CONTAMINANTS .
4070-
4071- (C) (E) A PERSON WHO VIOLATES SUBSECTION (A) (B) OF THIS SECTION
4072-IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS SUBJECT TO A FINE NOT
4073-EXCEEDING $5,000.
4074-
4075- (D) (F) A PERSON WHO VIOLATES SUBSECTION (B) (C) OF THIS SECTION
4076-IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS SUBJECT TO A FINE NOT
4077-EXCEEDING $10,000.
4078-
4079-SUBTITLE 12. LEGAL PROTECTIONS.
4080-
4081-36–1201.
4082-
4083- THE FOLLOWING PERSONS ACTING IN ACCORDANCE WITH THE PROVISIONS
4084-OF THIS TITLE MAY NO T BE SUBJECT TO ARRE ST, PROSECUTION , REVOCATION OF
4085-MANDATORY SUPERVISIO N, PAROLE, OR PROBATION , OR ANY CIVIL OR
4086-ADMINISTRATIVE PENAL TY, INCLUDING A CIVIL PE NALTY OR DISCIPLI NARY ACTION
4087-BY A PROFESSIONAL LI CENSING BOARD , OR BE DENIED ANY RIG HT OR PRIVILEGE ,
4088-FOR THE USE OF OR PO SSESSION OF CANNABIS THAT IS AUTHORIZED U NDER THIS
4089-TITLE:
4090-
4091- (1) A QUALIFYING PATIENT ;
4092-
4093- (2) A CANNABIS LICENSEE OR CANNABIS REGISTRA NT THAT IS
4094-LICENSED OR REGISTER ED UNDER THIS TITLE ; WES MOORE, Governor Ch. 254
4095-
4096-– 91 –
4097-
4098- (3) A CERTIFYING PROVIDE R;
4099-
4100- (4) A CAREGIVER;
4101-
4102- (5) AN ACADEMIC RESEARCH REPRESENTATIVE PURCH ASING
4103-MEDICAL CANNABIS UND ER § 36–701 SUBTITLE 7 OF THIS TITLE;
4104-
4105- (6) A HOSPITAL, MEDICAL FACILITY , OR HOSPICE PROGRAM W HERE A
4106-QUALIFYING PATIENT I S RECEIVING TREATMEN T; OR
4107-
4108- (7) DESIGNATED SCHOOL PE RSONNEL AUTHORIZED T O ADMINISTER
4109-MEDICAL CANNABIS TO A STUDENT IN ACCORDA NCE WITH THE GUIDELI NES
4110-ESTABLISHED UNDER § 7–446 OF THE EDUCATION ARTICLE UNLESS THE AC T OR
4111-OMISSION CONSTITUTES GROSS NEGLIGENCE OR WANTON OR WILLFUL
4112-MISCONDUCT .
4113-
4114-SUBTITLE 13. CIVIL IMMUNITIES AND LIABILITIES RESERVED.
4115-
4116-36–1301.
4117-
4118- (A) EXCEPT AS PROVIDED IN THIS SECTION, NEITHER THE STATE NOR ANY
4119-OF ITS POLITICAL SUB DIVISIONS MAY DENY A BENEFIT, AN ENTITLEMENT , A
4120-DRIVER’S LICENSE, A PROFESSIONAL LICEN SE, HOUSING ASSISTANCE , SOCIAL
4121-SERVICES, OR OTHER BENEFITS BA SED ON LAWFUL CANNAB IS USE OR FOR THE
4122-PRESENCE OF CANNABIN OIDS OR CANNABINOID METABOLITES IN THE URINE ,
4123-BLOOD, SALIVA, BREATH, HAIR, OR OTHER TISSUE OR F LUID OF AN INDIVIDUA L WHO
4124-IS AT LEAST 21 YEARS OLD OR A QUALI FYING PATIENT WHO IS UNDER THE AGE OF
4125-21 YEARS.
4126-
4127- (B) AN INDIVIDUAL MAY NOT BE DENIED CUSTODY OF OR VISITATION WITH
4128-A MINOR FOR ACT ING IN ACCORDANCE WI TH THIS TITLE, UNLESS THE INDIVIDUA L’S
4129-BEHAVIOR CREATES AN UNREASONABLE DANGER TO THE MINOR THAT CA N BE
4130-CLEARLY ARTICULATED AND SUBSTANTIATED .
4131-
4132- (C) EXCEPT AS PROVIDED IN THIS SECTION, NEITHER THE STATE NOR ANY
4133-OF ITS POLITICAL SUB DIVISIONS MAY DENY EMPLOY MENT OR A CONTRACT T O AN
4134-INDIVIDUAL FOR A PRI OR CONVICTION FOR A NONVIOLENT CANNABIS OFFENSE
4135-THAT DOES NOT INVOLV E DISTRIBUTION TO MI NORS.
4136-
4137- (D) FOR THE PURPOSES OF M EDICAL CARE, INCLUDING ORGAN AND TISSUE
4138-TRANSPLANTS :
4139- Ch. 254 2023 LAWS OF MARYLAND
4140-
4141-– 92 –
4142- (1) THE USE OF CANNABIS DOES NOT CO NSTITUTE THE USE OF AN
4143-ILLICIT SUBSTANCE OR OTHERWISE DISQUALIFY AN INDIVIDUAL FROM N EEDED
4144-MEDICAL CARE ; AND
4145-
4146- (2) MAY BE CONSIDERED ON LY WITH RESPECT TO E VIDENCE–BASED
4147-CLINICAL CRITERIA .
4148-
4149- (E) (1) THIS SECTION DOES NOT PREVENT A GO VERNMENT EMPLOYER
4150-FROM DISCIPLINING AN EMPLOYEE OR A CONTRA CTOR FOR:
4151-
4152- (I) INGESTING CANNABIS I N THE WORKPLACE ; OR
4153-
4154- (II) WORKING WHILE IMPAIR ED BY CANNABIS .
4155-
4156- (2) THE PROTECTIONS PROVI DED BY THIS SECTION DO NOT APPLY TO
4157-THE EXTENT THAT THEY CONFLICT WITH A GOVERNMENT EM PLOYER’S
4158-OBLIGATIONS UNDER FE DERAL LAW OR TO THE EXTENT THAT THEY WOU LD
4159-DISQUALIFY THE ENTIT Y FROM A MONETARY OR LICENSING–RELATED BENEFIT
4160-UNDER FEDERAL LAW .
4161-
4162- (3) THIS SECTION DOES NOT AUTHORIZE ANY PERSON TO ENGAGE IN,
4163-AND DOES NOT PREVENT THE IMPOSITI ON OF ANY CIVIL, CRIMINAL, DISCIPLINE, OR
4164-OTHER PENALTIES , INCLUDING DISCIPLINE OR TERMINATION BY A GOVERNMENT
4165-EMPLOYER FOR ENGAGIN G IN ANY TASK WHILE UNDER THE INFLUENCE OF
4166-CANNABIS, WHEN DOING SO WOULD CONSTITUTE NEGLIGENC E OR PROFESS IONAL
4167-MALPRACTICE .
4168-
4169- (F) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO PREVENT OR
4170-PROHIBIT ANY EMPLOYE R FROM DENYING EMPLO YMENT OR A CONTRACT TO AN
4171-INDIVIDUAL OR DISCIP LINING AN EMPLOYEE O R A CONTRACTOR FOR T ESTING
4172-POSITIVE FOR THE PRE SENCE OF CANNABINOID S OR CANNABINOID METABO LITES
4173-IN THE URINE, BLOOD, SALIVA, BREATH, HAIR, OR OTHER TISSUE OR F LUID OF THE
4174-EMPLOYEE’S OR CONTRACTOR ’S BODY, IF THE TEST WAS COND UCTED IN
4175-ACCORDANCE WITH THE EMPLOYER’S ESTABLISHED DRUG T ESTING POLICY.
4176-
4177-36–1302.
4178-
4179- (A) A HOLDER OF A PROFESSIONAL OR OCCU PATIONAL LICENSE MAY NOT
4180-BE SUBJECT TO PROFES SIONAL DISCIPLINE FO R PROVIDING ADVICE O R SERVICES
4181-RELATED TO CANNABIS ESTABLISHMENTS OR AP PLICATIONS TO OPERAT E
4182-CANNABIS ESTABLISHME NTS ON THE BASIS THA T CANNABIS IS ILLEGA L UNDER
4183-FEDERAL LAW.
4184- WES MOORE, Governor Ch. 254
4185-
4186-– 93 –
4187- (B) AN APPLICANT FOR A PR OFESSIONAL OR OCCUPA TIONAL LICENSE MAY
4188-NOT BE DENIED A LICE NSE BASED ON PREVIOU S EMPLOYMENT RELATED TO
4189-CANNABIS ESTABLISHME NTS OPERATING IN ACC ORDANCE WITH STATE LAW.
4190-
4191-36–1303.
4192-
4193- AN AGENCY OR A POLITI CAL SUBDIVISION OF T HE STATE MAY NOT RELY ON A
4194-VIOLATION OF FEDERAL LAW RELATED TO CANNA BIS AS THE SOLE BASI S FOR
4195-TAKING AN ADVERSE AC TION AGAINST A PERSO N.
4196-
4197-36–1304.
4198-
4199- (A) IT IS THE PUBLIC POLI CY OF THE STATE THAT CONTRACTS RELATED TO
4200-THE OPERATION OF A C ANNABIS ESTABLISHMEN T LICENSED IN ACCORDAN CE WITH
4201-THIS SUBTITLE ARE EN FORCEABLE.
4202-
4203- (B) IT IS THE PUBLIC POLI CY OF THE STATE THAT NO CONTRAC T ENTERED
4204-INTO BY A LICENSED C ANNABIS ESTABLISHMEN T OR ITS AGENTS AS A UTHORIZED IN
4205-ACCORDANCE WITH A VA LID LICENSE, OR BY THOSE WHO ALLO W PROPERTY TO BE
4206-USED BY A CANNABIS E STABLISHMENT , ITS EMPLOYEES , OR ITS AGENTS AS
4207-AUTHORIZED IN ACCORD ANCE WITH A VALID LI CENSE, SHALL BE UNENFORCEAB LE
4208-ON THE BASIS THAT CU LTIVATING, OBTAINING, MANUFACTURING , DISTRIBUTING,
4209-DISPENSING, TRANSPORTING , SELLING, POSSESSING, OR USING CANNABIS IS
4210-PROHIBITED BY FEDERA L LAW.
4211-
4212-SUBTITLE 14. CAPITAL ACCESS PROGRAM.
4213-
4214-36–1401.
4215-
4216- (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
4217-INDICATED.
4218-
4219- (B) “BORROWER” MEANS A BUSINESS THA T:
4220-
4221- (1) QUALIFIES AS A SMALL BUSINESS UNDER THE U.S. SMALL
4222-BUSINESS ADMINISTRATION SIZE S TANDARDS;
4223-
4224- (2) APPLIES TO A LENDER FOR BUSINESS FINANCI NG; AND
4225-
4226- (3) HAS FEWER THAN 50 EMPLOYEES.
4227-
4228- (C) “DEPARTMENT ” MEANS THE DEPARTMENT OF COMMERCE.
4229-
4230- (C) (D) “LENDER” MEANS: Ch. 254 2023 LAWS OF MARYLAND
4231-
4232-– 94 –
4233-
4234- (1) A CREDIT UNION , AS DEFINED IN § 1–101 OF THE FINANCIAL
4235-INSTITUTIONS ARTICLE;
4236-
4237- (2) A FINANCIAL INSTITUT ION, AS DEFINED IN § 1–101 OF THE
4238-FINANCIAL INSTITUTIONS ARTICLE; OR
4239-
4240- (3) A COMMUNITY DEVELOPM ENT FINANCIAL INSTIT UTION, AS
4241-DEFINED IN 12 U.S.C. § 4702(5).
4242-
4243- (D) (E) “PROGRAM” MEANS THE CAPITAL ACCESS PROGRAM
4244-ESTABLISHED UNDER TH IS SUBTITLE.
4245-
4246-36–1402.
4247-
4248- THERE IS A CAPITAL ACCESS PROGRAM IN THE DEPARTMENT OF
4249-COMMERCE.
4250-
4251-36–1403.
4252-
4253- THE PURPOSE OF THE PROGRAM IS TO STIMULA TE OPPORTUNITIES FOR
4254-SOCIAL EQUITY LICENSEES THAT HA VE DIFFICULTY OBTAIN ING FINANCING AND TO
4255-ESTABLISH A LOAN LOS S RESERVE ACCOUNT .
4256-
4257-36–1404.
4258-
4259- (A) A LOAN TO A SOCIAL EQU ITY LICENSEE QUALIFI ES UNDER THE
4260-PROGRAM IF THE LOAN :
4261-
4262- (1) SATISFIES THE LENDIN G CRITERIA OF THE FINANCIAL
4263-INSTITUTION LENDER; AND
4264-
4265- (2) HAS A TERM NOT EXCEE DING 10 YEARS; AND
4266-
4267- (3) DOES NOT EXCEED :
4268-
4269- (I) FOR A DISPENSARY , $500,000; OR
4270-
4271- (II) FOR A GROWER OR PROC ESSOR, $1,000,000.
4272-
4273- (B) A LOAN THAT QUALIFIES UNDER SUBSECTION (A) OF THIS SECTION MAY
4274-BE SHORT OR LONG TERM, HAVE FIXED OR VARIAB LE RATES, AND BE SECURED OR
4275-UNSECURED .
4276- WES MOORE, Governor Ch. 254
4277-
4278-– 95 –
4279-36–1405.
4280-
4281- (A) IF A LENDER WOULD LIK E TO TO PARTICIPATE IN THE PROGRAM, THE
4282-LENDER MUST A LENDER SHALL ENROLL THE QUALIFYIN G LOAN IN THE PROGRAM
4283-NOT MORE THAN 30 DAYS AFTER THE DATE OF THE FIRST DISBURSEME NT OF THE
4284-LOAN.
4285-
4286- (B) A LENDER MAY ENROLL AL L OR A PORTION OF A QUALIFYING LOAN IN
4287-AN AMOUNT OF NOT MOR E THAN:
4288-
4289- (1) FOR A DISPENSARY , $500,000; OR
4290-
4291- (2) FOR A GROWER OR PROC ESSOR, $1,000,000.
4292-
4293-36–1406.
4294-
4295- (A) THE DEPARTMENT SHALL ESTABLISH A LOAN LOS S RESERVE ACCOUNT
4296-FOR A LENDER WHEN TH E LENDER ENROLLS ITS FIRST LOAN UNDER THE PROGRAM.
4297-
4298- (B) AT THE TIME OF ENROLL MENT:
4299-
4300- (1) THE BORROWER SHALL M AKE A PAYMENT TO THE ACCOUNT OF
4301-BETWEEN 0% AND 7% OF THE ENROLLED LOAN AMOUNT;
4302-
4303- (2) THE LENDER SHALL MAKE A PAYMENT TO THE ACC OUNT OF AT
4304-LEAST 2% OF THE ENROLLED AMOU NT; AND
4305-
4306- (3) THE DIVISION ADMINISTRATION SHALL MAKE A MATCHIN G
4307-PAYMENT TO THE ACCOU NT IN AN AMOUNT EQUA L TO THE BORROWER AN D
4308-LENDER’S AGGREGATE PAYMENT UNDER ITEMS (1) AND (2) OF THIS SUBSECTION .
4309-
4310- (C) THE LOAN LOSS RESERVE ACCOUNT OF A LENDER SHALL BE AVAILABLE
4311-FOR THE LENDER TO WI THDRAW IF A BORROWER DEFAULTS ON A QUALIF YING LOAN.
4312-
4313- (D) THE DEPARTMENT SHALL COLL ABORATE WITH THE OFFICE OF SOCIAL
4314-EQUITY ESTABLISHED UN DER § 1–309.1 OF THIS ARTICLE TO I DENTIFY AND ASSIST
4315-BUSINESSES WITH OBTA INING FINANCING FROM THE PROGRAM.
4316-
4317- (E) THE DEPARTMENT SHALL ESTA BLISH PROCEDURES FOR A LENDER TO
4318-WITHDRAW FROM THE PROGRAM.
4319-
4320-SUBTITLE 15. BANKING AND INSURANCE.
4321-
4322-36–1501. Ch. 254 2023 LAWS OF MARYLAND
4323-
4324-– 96 –
4325-
4326- (A) IN THIS SUBTITLE THE FOLLOWI NG WORDS HAVE THE ME ANINGS
4327-INDICATED.
4328-
4329- (B) “CANNABIS–RELATED LEGITIMATE B USINESS” MEANS A
4330-MANUFACTURER , PRODUCER, OR ANOTHER PERSON TH AT:
4331-
4332- (B) “CANNABIS BUSINESS ” MEANS A MANUFACTURER , PRODUCER, OR
4333-ANOTHER PERSON THAT :
4334-
4335- (1) PARTICIPATES IN ANY BUSINESS OR ORGANIZED ACTIVIT Y THAT
4336-INVOLVES HANDLING CA NNABIS OR CANNABIS P RODUCTS, INCLUDING
4337-CULTIVATING, PRODUCING, MANUFACTURING , SELLING, TRANSPORTING ,
4338-DISPLAYING, DISPENSING, DISTRIBUTING, OR PURCHASING CANNAB IS OR CANNABIS
4339-PRODUCTS; AND
4340-
4341- (2) ENGAGES IN AN ACTIVI TY DESCRIBED IN ITEM (1) OF THIS
4342-SUBSECTION IN ACCORD ANCE WITH STATE LAW.
4343-
4344- (C) “DEPOSITORY INSTITUTIO N” MEANS A STATE–CHARTERED OR
4345-FEDERALLY CHARTERED FINANCIAL INSTITUTIO N, OTHER–STATE BANK , OR
4346-FOREIGN BRANCH THAT :
4347-
4348- (1) IS LOCATED IN THE STATE OR MAINTAINS BR ANCHES IN THE
4349-STATE; AND
4350-
4351- (2) IS AUTHORIZED TO MAI NTAIN ACCOUNTS .
4352-
4353- (C) (D) (1) “SERVICE PROVIDER ” MEANS A BUSINESS , AN
4354-ORGANIZATION , OR ANY OTHER PERSON THAT:
4355-
4356- (I) SELLS GOODS OR SERVI CES TO A CANNABIS–RELATED
4357-CANNABIS LEGITIMATE BUSINESS; OR
4358-
4359- (II) PROVIDES ANY BUSINES S SERVICES, INCLUDING THE SALE
4360-OR LEASE OF REAL OR ANY OTHER PROPERTY , LEGAL OR OTHER LICEN SED
4361-SERVICES, OR ANY OTHER ANCILLA RY SERVICE, RELATING TO CANNABIS .
4362-
4363- (2) “SERVICE PROVIDER ” DOES NOT INCLUDE A BUSINESS , AN
4364-ORGANIZATION , OR ANY OTHER PERSON THAT PARTICIPATES IN ANY BUSINESS OR
4365-ORGANIZED ACTIVITY T HAT INVOLVES HANDLIN G CANNABIS OR CANNAB IS
4366-PRODUCTS, INCLUDING CULTIVATIN G, PRODUCING, MANUFACTURING , SELLING, WES MOORE, Governor Ch. 254
4367-
4368-– 97 –
4369-TRANSPORTING , DISPLAYING, DISPENSING, DISTRIBUTING, OR PURCHASING
4370-CANNABIS OR CANNABIS PRODUCTS.
4371-
4372-36–1502.
4373-
4374- THE PROVISIONS IN THI S SUBTITLE APPLY TO :
4375-
4376- (1) ALL BANKS, CREDIT UNIONS , AND OTHER ENTITIES O PERATING AS
4377-DEPOSITORY INSTITUTI ONS IN THE STATE; AND
4378-
4379- (2) INSURANCE COMPANIES AND INSURANCE PRODUCER S
4380-OPERATING IN THE STATE.
4381-
4382-36–1503.
4383-
4384- (A) THE STATE BANKING REGULAT OR OFFICE COMMISIONER OF
4385-FINANCIAL REGULATION MAY NOT:
4386-
4387- (1) TERMINATE OR LIMIT T HE DEPOSIT INSURANCE OR SHARE
4388-INSURANCE OF A DEPOS ITORY INSTITUTION UN DER THE FEDERAL DEPOSIT
4389-INSURANCE ACT OR THE FEDERAL CREDIT UNION ACT, A DEPOSITORY
4390-INSTITUTION OPERATIN G IN THE STATE UNDER THE FINANCIAL INSTITUTIONS
4391-ARTICLE, OR TAKE ANY OTHER AD VERSE ACTION AGAINST A DEPOSITORY
4392-INSTITUTION UNDER 12 U.S.C. § 1818 SOLELY BECAUSE THE D EPOSITORY
4393-INSTITUTION PROVIDES OR HAS PROVIDED FINA NCIAL SERVICES TO A
4394-CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER;
4395-
4396- (2) PROHIBIT, PENALIZE, OR OTHERWISE DISCOUR AGE A
4397-DEPOSITORY INSTITUTI ON FROM PROVIDING FI NANCIAL SERVICES TO A
4398-CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS IN THE STATE;
4399-
4400- (3) RECOMMEND , INCENTIVIZE, OR ENCOURAGE A DEPOS ITORY
4401-INSTITUTION NOT TO TO NOT OFFER FINANCIAL SERV ICES TO AN ACCOUNT H OLDER,
4402-OR TO DOWNGRADE OR C ANCEL THE FINANCIAL SERVICES OFFERED TO AN
4403-ACCOUNT HOLDER SOLEL Y BECAUSE:
4404-
4405- (I) THE ACCOUNT HOLDER I S A CANNABIS–RELATED CANNABIS
4406-LEGITIMATE BUSINESS OR SERVICE PROVIDER, OR IS AN EMPLOYEE , OWNER, OR
4407-OPERATOR OF A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE
4408-PROVIDER;
4409-
4410- (II) THE ACCOUNT HOLDER L ATER BECOMES AN EMPL OYEE,
4411-OWNER, OR OPERATOR OF A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS
4412-OR SERVICE PROVIDER ; OR Ch. 254 2023 LAWS OF MARYLAND
4413-
4414-– 98 –
4415-
4416- (III) THE DEPOSITORY INSTI TUTION WAS NOT AWARE THAT THE
4417-ACCOUNT HOLDER IS AN EMPLOYEE, OWNER, OR OPERATOR OF A
4418-CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER;
4419-
4420- (4) TAKE ANY ADVERSE OR CORRECTIVE SUPERVISO RY ACTION ON A
4421-LOAN MADE TO :
4422-
4423- (I) A CANNABIS–RELATED LEGITIMATE BUSINESS OR SERVICE
4424-PROVIDER SOLELY BECA USE THE BUSINESS IS A CANNABIS–RELATED CANNABIS
4425-LEGITIMATE BUSINESS OR SERVICE PROVIDER;
4426-
4427- (II) AN EMPLOYEE , OWNER, OR OPERATOR OF A
4428-CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER
4429-SOLELY BECAUSE THE E MPLOYEE, OWNER, OR OPERATOR IS EMPLO YED BY, OWNS,
4430-OR OPERATES A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE
4431-PROVIDER, AS APPLICABLE; OR
4432-
4433- (III) AN OWNER OR OPERATOR OF REAL ESTATE OR EQ UIPMENT
4434-THAT IS LEASED TO A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR
4435-SERVICE PROVIDER SOL ELY BECAUSE THE OWNE R OR OPERATOR OF THE R EAL
4436-ESTATE OR EQUIPMENT LEASED THE EQUIPMENT OR REAL ESTATE TO A
4437-CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER, AS
4438-APPLICABLE; OR
4439-
4440- (5) PROHIBIT OR PENALIZE A DEPOSITORY INSTITU TION, OR AN
4441-ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN ASSOCIATION WITH A
4442-DEPOSITORY INSTITUTI ON, OR OTHERWISE DISCOUR AGE A DEPOSITORY
4443-INSTITUTION, OR AN ENTITY PERFORM ING A FINANCIAL SERV ICE FOR OR IN
4444-ASSOCIATION WITH A DEPOSITOR Y INSTITUTION, FROM ENGAGING IN A F INANCIAL
4445-SERVICE FOR A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE
4446-PROVIDER.
4447-
4448- (B) SUBSECTION (A) OF THIS SECTION SHAL L APPLY TO AN INSTIT UTION
4449-APPLYING FOR A DEPOS ITORY INSTITUTION CH ARTER TO THE SAME EXTEN T AS IT
4450-APPLIES TO A DEPOSIT ORY INSTITUTION .
4451-
4452-36–1504.
4453-
4454- FOR THE PURPOSES OF TITLE 18 U.S.C. §§ 1956 AND 1957 AND ALL OTHER
4455-PROVISIONS OF FEDERA L LAW, THE PROCEEDS FROM A TRANSACTION INVOLVIN G
4456-ACTIVITIES OF A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR WES MOORE, Governor Ch. 254
4457-
4458-– 99 –
4459-SERVICE PROVIDER MAY NOT BE CONSIDERED PR OCEEDS FROM AN UNLAW FUL
4460-ACTIVITY SOLELY BECA USE:
4461-
4462- (1) THE TRANSACTION INVO LVES PROCEEDS FROM A
4463-CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER; OR
4464-
4465- (2) THE TRANSACTION INVOLVES PROCEEDS FR OM:
4466-
4467- (I) CANNABIS–RELATED CANNABIS ACTIVITIES CONDUCTED BY
4468-A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS; OR
4469-
4470- (II) ACTIVITIES CONDUCTED BY A SERVICE PROVIDE R.
4471-
4472-36–1505.
4473-
4474- (A) WITH RESPECT TO PROVI DING A FINANCIAL SER VICE TO A
4475-CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR A SERVIC E PROVIDER, A
4476-DEPOSITORY INSTITUTI ON, ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN
4477-ASSOCIATION WITH A D EPOSITORY INSTITUTIO N, OR INSURER THAT PROV IDES A
4478-FINANCIAL SERVICE TO A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR
4479-SERVICE PROVIDER , AND THE OFFICERS , DIRECTORS, AND EMPLOYEES OF THA T
4480-DEPOSITORY INSTITUTI ON, ENTITY, OR INSURER MAY NOT B E HELD LIABLE UNDER
4481-ANY STATE LAW OR REGULATI ON:
4482-
4483- (1) SOLELY FOR PROVIDING THE FINANCIAL SERVIC E; OR
4484-
4485- (2) FOR FURTHER INVESTIN G ANY INCOME DERIVED FROM THE
4486-FINANCIAL SERVICE .
4487-
4488- (B) AN INSURER THAT ENGAG ES IN THE BUSINESS O F INSURANCE WITH A
4489-CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER OR
4490-THAT OTHERWISE ENGAG ES WITH A PERSON IN A TRANSACTION ALLOWED UND ER
4491-STATE LAW RELATED TO CANNABIS, AND THE OFFICERS , DIRECTORS, AND
4492-EMPLOYEES OF THAT IN SURER MAY NOT BE HEL D LIABLE UNDER STATE LAW OR
4493-REGULATION :
4494-
4495- (1) SOLELY FOR ENGAGING IN THE BUSINESS OF I NSURANCE; OR
4496-
4497- (2) FOR FURTHER INVESTIN G ANY INCOME DERIVED F ROM THE
4498-BUSINESS OF INSURANC E.
4499-
4500- (C) A DEPOSITORY INSTITUTI ON THAT HAS A LEGAL INTEREST IN THE
4501-COLLATERAL FOR A LOA N OR ANOTHER FINANCI AL SERVICE PROVIDED TO AN
4502-OWNER, EMPLOYEE, OR OPERATOR OF A CANNABIS–RELATED CANNABIS Ch. 254 2023 LAWS OF MARYLAND
4503-
4504-– 100 –
4505-LEGITIMATE BUSINESS OR SERVICE PROV IDER, OR TO AN OWNER OR OP ERATOR OF
4506-REAL ESTATE OR EQUIP MENT THAT IS LEASED OR SOLD TO A CANNABIS–RELATED
4507-CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER, MAY NOT BE SUBJECT T O
4508-CRIMINAL, CIVIL, OR ADMINISTRATIVE FO RFEITURE OF THAT LEG AL INTEREST
4509-UNDER STATE LAW FOR PROVIDI NG THE LOAN OR OTHER FINANCIAL SERVICE .
4510-
4511-36–1506.
4512-
4513- (A) THIS SUBTITLE DOES NO T REQUIRE A DEPOSITO RY INSTITUTION ,
4514-ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN ASSOCIATION WITH A
4515-DEPOSITORY INSTITUTI ON, OR INSURER TO PROVIDE FINANCIAL SE RVICES TO A
4516-CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS, SERVICE PROVIDER , OR
4517-ANY OTHER BUSINESS .
4518-
4519- (B) THIS SUBTITLE MAY NOT BE CONSTRUED TO LIMI T OR OTHERWISE
4520-RESTRICT THE GENERAL EXAMINATION , SUPERVISORY , AND ENFORCEMENT
4521-AUTHORITY OF THE STATE BANKING REGULAT OR COMMISSIONER OF FINANCIAL
4522-REGULATION, PROVIDED THAT THE BA SIS FOR ANY SUPERVIS ORY OR
4523-ENFORCEMEN T ACTION IS NOT THE PROVISION OF FINANCI AL SERVICES TO A
4524-CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER.
4525-
4526- (C) THIS SUBTITLE MAY NOT BE CONSTRUED TO INTE RFERE WITH THE
4527-REGULATION OF THE BU SINESS OF INSURANCE .
4528-
4529-36–1507.
4530-
4531- THE STATE MAY NO T COOPERATE OR AID F EDERAL LAW ENFORCEME NT
4532-AUTHORITIES ATTEMPTI NG TO PROSECUTE FINA NCIAL INSTITUTIONS T HAT ARE
4533-LAWFULLY OPERATING W ITHIN THE CONFINES O F THIS SUBTITLE.
4534-
4535-Article – Tax – General
4536-
4537-2–1302.2.
4538-
4539- AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–1301 THROUGH
4540-2–1302.1 OF THIS SUBTITLE , OF THE SALES AND USE TAX COLLECTED UNDER §
4541-11–104(K) OF THIS ARTICLE FROM THE SALE OF CANNABIS FROM A DISPENSARY TO
4542-A CONSUMER UNDER TITLE 36, AS DEFINED IN § 1–101 OF THE ALCOHOLIC
4543-BEVERAGES AND CANNABIS ARTICLE, THE COMPTROLLER QUARTERLY SHALL
4544-DISTRIBUTE:
4545-
4546- (1) TO THE CANNABIS REGULATION AND ENFORCEMENT FUND,
4547-ESTABLISHED UNDER § 36–206 OF THE ALCOHOLIC BEVERAGES AND CANNABIS WES MOORE, Governor Ch. 254
4548-
4549-– 101 –
4550-ARTICLE, AN AMOUNT NECESSARY TO DEFRAY THE ENTIRE COST OF T HE
4551-OPERATION OF THE CANNABIS REGULATION AND ENFORCEMENT DIVISION
4552-OPERATIONS AND ADMIN ISTRATIVE EXPENSES O F THE MARYLAND CANNABIS
4553-ADMINISTRATION ESTABLISHED UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES
4554-AND CANNABIS ARTICLE;
4555-
4556- (2) AFTER MAKING THE DISTRIBUTION REQUIRED UNDER ITEM (1) OF
4557-THIS SECTION:
4558-
4559- (2) (I) 30% 35% TO THE COMMUNITY REINVESTMENT AND REPAIR
4560-FUND UNDER § 1–322 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE
4561-FOR FISCAL YEARS 2024 THROUGH 2033;
4562-
4563- (3) 1.5% TO COUNTIES AND MUNICIPALITIES , WHICH SHALL BE
4564-ALLOCATED TO EACH JU RISDICTION BASED ON THE PERCENTAGE OF RE VENUE
4565-COLLECTED FROM THAT JURISDICTION;
4566-
4567- (3) 1.5% OF THE REVENUE COLLE CTED IN EACH COUNTY OUTSIDE
4568-THE BOUNDARIES OF A MUNICIPALITY TO THE COUNTY, TO BE USED FOR
4569-BEHAVIORAL HEALTH AND DRUG TREATMENT ;
4570-
4571- (4) 1.5% OF THE REVENUE COLLE CTED IN EACH MUNICIP ALITY TO
4572-THE MUNICIPALITY , TO BE USED FOR BEHAV IORAL HEALTH AND DRU G TREATMENT ;
4573-
4574- (II) 5% TO COUNTIES, WHICH SHALL BE ALLOC ATED TO EACH
4575-COUNTY BASED ON THE PERCENTAGE OF REVENU E COLLECTED FROM THA T COUNTY,
4576-EXCEPT THAT A COUNTY SHALL DISTRIBUTE TO A MUNICIPALITY LOCAT ED IN THE
4577-COUNTY 50% OF THE ALLOCATION RE CEIVED UNDER THIS IT EM THAT IS
4578-ATTRIBUTABLE TO THE SALES AND USE TAX RE VENUE GENERATED BY A DISPENSARY
4579-LOCATED IN THAT MUNIC IPALITY;
4580-
4581- (4) (5) (III) 1.5% 5% TO THE CANNABIS PUBLIC HEALTH FUND
4582-ESTABLISHED UNDER § 13–4505 OF THE HEALTH – GENERAL ARTICLE;
4583-
4584- (5) (6) (IV) FOR FISCAL YEARS 2024 THROUGH 2028, 1.5% 5% TO
4585-THE CANNABIS BUSINESS ASSISTANCE FUND ESTABLISHED UNDER § 5–1901 OF
4586-THE ECONOMIC DEVELOPMENT ARTICLE; AND
4587-
4588- (6) (7)(3) ANY BALANCE REMAININ G AFTER THE DISTRIBU TIONS
4589-REQUIRED UNDER PARAGRAPHS (1) THROUGH ITEMS (1) AND (2) (5) (6) OF THIS
4590-SECTION TO THE GENERAL FUND OF THE STATE.
4591-
4592-2–1303.
4593- Ch. 254 2023 LAWS OF MARYLAND
4594-
4595-– 102 –
4596- After making the distributions required under §§ 2–1301 through [2–1302.1]
4597-2–1302.2 of this subtitle, the Comptroller shall pay:
4598-
4599- (1) revenues from the hotel surcharge into the Dorchester County
4600-Economic Development Fund established under § 10–130 of the Economic Development
4601-Article;
4602-
4603- (2) to the Blueprint for Maryland’s Future Fund established under § 5–206
4604-of the Education Article, the following percentage of the remaining sales and use tax
4605-revenues:
4606-
4607- (i) for fiscal year 2023, 9.2%;
4608-
4609- (ii) for fiscal year 2024, 11.0%;
4610-
4611- (iii) for fiscal year 2025, 11.3%;
4612-
4613- (iv) for fiscal year 2026, 11.7%; and
4614-
4615- (v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and
4616-
4617- (3) the remaining sales and use tax revenue into the General Fund of the
4618-State.
4619-
4620-11–104.
4621-
4622- (K) THE SALES AND USE TAX RATE FOR THE SALE OF CANNABIS FROM A
4623-DISPENSARY TO A CONS UMER UNDER TITLE 36, AS DEFINED IN § 1–101 OF THE
4624-ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE IS AS FOLLOWS:, FOR FISCAL
4625-YEAR 2024 AND EACH FISCAL YEAR THEREAFTE R, 9%.
4626-
4627- (1) FOR FISCAL YEAR 2024, 6%;
4628-
4629- (2) FOR FISCAL YEAR 2025, 7%;
4630-
4631- (3) FOR FISCAL YEAR 2026, 8%;
4632-
4633- (4) FOR FISCAL YEAR 2027, 9%; AND
4634-
4635- (5) FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR THEREAFTER ,
4636-10%.
4637-
4638-11–245.
4639-
4640- THE SALES AND USE TAX DOES NOT APPLY TO THE SALE OF: WES MOORE, Governor Ch. 254
4641-
4642-– 103 –
4643-
4644- (1) MEDICAL CANNABIS UND ER TITLE 36 OF THE ALCOHOLIC
4645-BEVERAGES AND CANNABIS ARTICLE; OR
4646-
4647- (2) CANNABIS BETWEEN CAN NABIS ESTABLISHMENTS BUSINESSES
4648-THAT ARE LICENSED UN DER TITLE 36 OF THE ALCOHOLIC BEVERAGES AND
4649-CANNABIS ARTICLE.
4650-
4651-Article – Economic Development
4652-
4653-5–1901.
4654-
4655- (a) (1) In this section[,] THE FOLLOWING WORDS HAVE THE MEANINGS
4656-INDICATED.
4657-
4658- (2) “Fund” means the Cannabis Business Assistance Fund.
4659-
4660- (3) (I) “PERSONAL NET WORTH ” MEANS THE NET VALUE OF THE
4661-ASSETS OF AN INDIVI DUAL REMAINING AFTER TOTAL LIABILITIES AR E DEDUCTED,
4662-INCLUDING THE INDIVI DUAL’S SHARE OF ASSETS HE LD JOINTLY OR AS COM MUNITY
4663-PROPERTY WITH THE IN DIVIDUAL’S SPOUSE.
4664-
4665- (II) “PERSONAL NET WORTH ” DOES NOT INCLUDE :
4666-
4667- 1. THE INDIVIDUAL ’S OWNERSHIP INTEREST IN THE
4668-APPLICANT;
4669-
4670- 2. THE INDIVIDUAL ’S EQUITY IN THE INDI VIDUAL’S
4671-PRIMARY PLACE OF RES IDENCE; OR
4672-
4673- 3. THE CASH VALUE OF AN Y QUALIFIED RETIREME NT
4674-SAVINGS PLANS OR IND IVIDUAL RETIREMENT A CCOUNTS.
4675-
4676- (b) There is a Cannabis Business Assistance Fund.
4677-
4678- (c) The purpose of the Fund is to assist small, minority –owned, and
4679-women–owned businesses entering the adult–use cannabis industry.
4680-
4681- (d) The Department shall administer the Fund.
4682-
4683- (e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of
4684-the State Finance and Procurement Article.
4685-
4686- (2) The State Treasurer shall hold the Fund separately, and the
4687-Comptroller shall account for the Fund. Ch. 254 2023 LAWS OF MARYLAND
4688-
4689-– 104 –
4690-
4691- (f) The Fund consists of:
4692-
4693- (1) money appropriated in the State budget to the Fund; [and]
4694-
4695- (2) REVENUE DISTRIBUTED TO THE FUND IN ACCORDANCE WI TH §
4696-2–1302.2 OF THE TAX – GENERAL ARTICLE; AND
4697-
4698- (3) any other money from any other source accepted for the benefit of the
4699-Fund.
4700-
4701- (g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only
4702-for:
4703-
4704- (i) grants or loans to small, minority–owned, or women–owned
4705-businesses for:
4706-
4707- 1. license application assistance for participation in the
4708-adult–use cannabis industry;
4709-
4710- 2. assistance with the operating or capital expenses of a
4711-business participating in the adult–use cannabis industry; or
4712-
4713- 3. targeted training to support participation in the adult–use
4714-cannabis industry; and
4715-
4716- (ii) grants to historically black colleges and universities for
4717-cannabis–related programs and business development organizations, including incubators,
4718-to train and assist small, minority, and women business owners and entrepreneurs seeking
4719-to become licensed to participate in the adult–use cannabis industry.
4720-
4721- (2) The Department:
4722-
4723- (i) shall prioritize awarding grants and loans in accordance with
4724-paragraph (1) of this subsection to:
4725-
4726- 1. populations that have been historically disproportionately
4727-impacted by the enforcement of laws criminalizing the use of cannabis; and
4728-
4729- 2. individuals who have been convicted of a violation of a law
4730-criminalizing the use of cannabis; and
4731-
4732- 3. SOCIAL EQUITY LICENS EES TO ASSIST WITH
4733-START–UP OPERATING AND CAP ITAL FUNDING NEEDS ; AND
4734- WES MOORE, Governor Ch. 254
4735-
4736-– 105 –
4737- (ii) may not award grants or loans to small, minority, and women
4738-business owners and entrepreneurs with a personal net worth exceeding $1,700,000.
4739-
4740- (3) In order to award grants and loans in accordance with paragraph (1) of
4741-this subsection, the Department shall develop partnerships with:
4742-
4743- (i) traditional minority–serving institutions in the State and
4744-surrounding jurisdictions, including historically black colleges and universities;
4745-
4746- (ii) trade associations representing minority and women–owned
4747-businesses; and
4748-
4749- (iii) the Governor’s Office of Small, Minority, and Women Business
4750-Affairs.
4751-
4752- (h) (1) The State Treasurer shall invest the money of the Fund in the same
4753-manner as other State money may be invested.
4754-
4755- (2) Any interest earnings of the Fund shall be credited to the Fund.
4756-
4757- (i) Expenditures from the Fund may be made only in accordance with the State
4758-budget.
4759-
4760-Article – State Finance and Procurement
4761-
4762-6–201.
4763-
4764- (e) “Financial institution” means:
4765-
4766- (1) any banking institution;
4767-
4768- (2) any national banking association;
4769-
4770- (3) an institution that is incorporated under the laws of any other state as
4771-a bank; [and] OR
4772-
4773- (4) an institution that is incorporated under the laws of this State or of the
4774-United States as a savings and loan association.
4775-
4776-6–226.
4777-
4778- (a) (2) (i) Notwithstanding any other provision of law, and unless
4779-inconsistent with a federal law, grant agreement, or other federal requirement or with the
4780-terms of a gift or settlement agreement, net interest on all State money allocated by the
4781-State Treasurer under this section to special funds or accounts, and otherwise entitled to Ch. 254 2023 LAWS OF MARYLAND
4782-
4783-– 106 –
4784-receive interest earnings, as accounted for by the Comptroller, shall accrue to the General
4785-Fund of the State.
4786-
4787- (ii) The provisions of subparagraph (i) of this paragraph do not apply
4788-to the following funds:
4789-
4790- 170. the Cannabis Public Health Fund; [and]
4791-
4792- 171. the Community Reinvestment and Repair Fund;
4793-
4794- 172. THE CANNABIS REGULATION AND ENFORCEMENT
4795-FUND; AND
4796-
4797- 173. THE MEDICAL CANNABIS COMPASSIONATE USE
4798-FUND.
4799-
4800-Article – State Personnel and Pensions
4801-
4802-23–201.
4803-
4804- (a) Except as provided in subsection (b) of this section, §§ 23–203 through 23–205
4805-of this subtitle apply only to:
4806-
4807- (13) an individual who, on and before the effective date of participation as
4808-defined under § 31–101(c) of this article, is:
4809-
4810- (i) a supportive service employee of the Board of Education of Kent
4811-County;
4812-
4813- (ii) an employee of the Town of Oakland;
4814-
4815- (iii) an employee of the City of Frostburg;
4816-
4817- (iv) an employee of the Town of Sykesville; or
4818-
4819- (v) an employee of the Town of University Park; [and]
4820-
4821- (14) an employee of the Maryland Automobile Insurance Fund on or after
4822-the date that the Maryland Automobile Insurance Fund begins participation in the
4823-Employees’ Pension System; AND
4824-
4825- (15) THE EXECUTIVE DIRECTOR OF THE ALCOHOL, TOBACCO, AND
4826-CANNABIS COMMISSION, IF THE EXECUTIVE DIRECTOR IS NOT A SWO RN POLICE
4827-OFFICER WITH THE POW ERS GRANTED TO AN OF FICER OF THE FIELD WES MOORE, Governor Ch. 254
4828-
4829-– 107 –
4830-ENFORCEMENT DIVISION UNDER § 1–313 OF THE ALCOHOLIC BEVERAGES AND
4831-CANNABIS ARTICLE.
4832-
4833-26–201.
4834-
4835- (a) Except as provided in subsection (b) of this section, this subtitle applies only
4836-to:
4837-
4838- (22) the Executive Director of the Alcohol [and], Tobacco, AND CANNABIS
4839-Commission, ONLY IF THE EXECUTIVE DIRECTOR IS A SWORN P OLICE OFFICER WITH
4840-THE POWERS GRANTED T O AN OFFICER OR EMPL OYEE OF THE FIELD
4841-ENFORCEMENT DIVISION UNDER § 1–313 OF THE ALCOHOLIC BEVERAGES AND
4842-CANNABIS ARTICLE.
4843-
4844-Article – Health – General
4845-
4846-13–4505.
4847-
4848- (a) There is a Cannabis Public Health Fund.
4849-
4850- (b) The purpose of the Fund is to provide funding to address the health effects
4851-associated with the legalization of adult–use cannabis.
4852-
4853- (c) The Department shall administer the Fund.
4854-
4855- (d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of
4856-the State Finance and Procurement Article.
4857-
4858- (2) The State Treasurer shall hold the Fund separately, and the
4859-Comptroller shall account for the Fund.
4860-
4861- (e) The Fund consists of:
4862-
4863- (1) Revenue distributed to the Fund based on revenues from adult–use
4864-cannabis;
4865-
4866- (2) Money appropriated in the State budget to the Fund; [and]
4867-
4868- (3) REVENUE DISTRIBUTED TO T HE FUND IN ACCORDANCE WI TH §
4869-2–1302.2 OF THE TAX – GENERAL ARTICLE; AND
4870-
4871- [(3)] (4) Any other money from any other source accepted for the benefit
4872-of the Fund.
4873-
4874- (f) The Fund may be used only for:
4875- Ch. 254 2023 LAWS OF MARYLAND
4876-
4877-– 108 –
4878- (1) Supporting the Advisory Council in performing its duties;
4879-
4880- (2) Supporting data collection and research on the effects of cannabis
4881-legalization in the State;
4882-
4883- (3) Providing funding for education and public awareness campaigns
4884-related to cannabis use, including funding for educational programs to be used in schools;
4885-
4886- (4) Supporting substance use disorder counseling and treatment for
4887-individuals;
4888-
4889- (5) Training and equipment for law enforcement to recognize impairments
4890-due to cannabis; and
4891-
4892- (6) Purchasing technology proven to be effective at measuring cannabis
4893-levels in drivers.
4894-
4895- (g) (1) The State Treasurer shall invest the money of the Fund in the same
4896-manner as other State money may be invested.
4897-
4898- (2) Any interest earnings of the Fund shall be credited to the Fund.
4899-
4900- (h) Expenditures from the Fund may be made only in accordance with the State
4901-budget.
4902-
4903- SECTION 5. 6. AND BE IT FURTHER ENACTED, That Article – Alcoholic
4904-Beverages of the Annotated Code of Maryland be renamed to be Article – Alcoholic
4905-Beverages and Cannabis.
4906-
4907- SECTION 6. 7. AND BE IT FURTHER ENACTED, That:
4908-
4909- (a) The transfer of the Maryland Medical Cannabis Commission personnel to the
4910-Alcohol, Tobacco, and Cannabis Commission Maryland Cannabis Administration to
4911-oversee the regulation of cannabis under this Act shall be conducted in a manner that will
4912-minimize the costs of the transfer and will result in a more cost–efficient operation for the
4913-regulation of cannabis for the protection of the public health, safety, and welfare of the
4914-State.
4915-
4916- (b) The Cannabis Regulation and Enforcement Division of the Office of the
4917-Executive Director of the Alcohol, Tobacco, and Cannabis Commission is the successor of
4918-the Maryland Medical Cannabis Commission in matters concerning the regulation of
4919-medical cannabis.
4920-
4921- (b) The Maryland Cannabis Administration is the successor of the Maryland
4922-Medical Cannabis Commission in matters concerning the regulation of medical cannabis.
4923- WES MOORE, Governor Ch. 254
4924-
4925-– 109 –
4926- (c) In every law, executive order, rule, regulation, policy, or document created by
4927-an official, an employee, or a unit of this State, the names and titles of those agencies and
4928-officials mean the names and titles of the successor agency or official.
4929-
4930- SECTION 7. 8. AND BE IT FURTHER ENACTED, That all persons who, as of June
4931-30, 2023 the effective date of this Act, are merit employees or contract staff in budgeted
4932-positions of the Maryland Medical Cannabis Commission and whose positions are
4933-transferred to the Cannabis Regulation and Enforcement Division of the Office of the
4934-Executive Director of the Alcohol, Tobacco, and Cannabis Commission to oversee, the
4935-regulation of cannabis provided by this Act, are hereby transferred to the Cannabis
4936-Regulation and Enforcement Division of the Office of the Executive Director of the Alcohol,
4937-Tobacco, and Cannabis Commission Maryland Cannabis Administration to oversee, the
4938-regulation of cannabis provided by this Act, are hereby transferred to the Maryland
4939-Cannabis Administration without any change or loss of rights, pay, working conditions,
4940-benefits, rights, or status, and shall retain any merit system and retirement status they
4941-may have on the date of transfer.
4942-
4943- SECTION 8. 9. AND BE IT FURTHER ENACTED, That the balance of the Natalie
4944-M. LaPrade Medical Cannabis Fund on the date immediately preceding the date this Act
4945-takes effect shall be credited to the Cannabis Regulation and Enforcement Fund, and that
4946-any funds credited to the Cannabis Regulation and Enforcement Fund may be used to cover
4947-the costs of implementing this Act and regulating the cannabis industry in Maryland.
4948-
4949- SECTION 9. 10. AND BE IT FURTHER ENACTED, That, notwithstanding any
4950-other provision of law, from the date this Act takes effect to December 31, 2023, both
4951-inclusive, the Commission Maryland Cannabis Administration is exempt from
4952-procurement requirements under the State Finance and Procurement Article if the
4953-procurement is for:
4954-
4955- (1) banking services for the Cannabis Regulation and Enforcement
4956-Division Administration to collect fees and tax revenue;
4957-
4958- (2) banking services to help support cannabis businesses to transition from
4959-an all cash system;
4960-
4961- (3) a consultant to support the Cannabis Regulation and Enforcement
4962-Division Administration in the process for cannabis licensure, including services related to
4963-investigations and the financial or criminal history review of applicants; and
4964-
4965- (4) a consultant to provide technical assistance to social equity applicants;
4966-and
4967-
4968- (5) communication services for public and consumer education campaigns
4969-on cannabis laws and regulations and potential health and safety risks associated with
4970-cannabis use; and
4971- Ch. 254 2023 LAWS OF MARYLAND
4972-
4973-– 110 –
4974- (5) (6) establishing a State cannabis testing laboratory at a preexisting site.
4975-
4976- SECTION 10. 11. AND BE IT FURTHER ENACTED, That:
4977-
4978- (a) To the extent practicable and authorized by the U.S. Constitution, a cannabis
4979-licensee shall comply with the State’s Minority Business Enterprise Program.
4980-
4981- (b) On or before 6 months after the issuance of a cannabis license under § 36–401
4982-of the Alcoholic Beverages and Cannabis Article, the Governor’s Office of Small, Minority,
4983-and Women Business Affairs, in consultation with the Office of the Attorney General and
4984-the Office of Social Equity within the Alcohol, Tobacco, and Cannabis Commission and the
4985-cannabis licensee, shall establish a clear plan for setting reasonable and appropriate
4986-minority business enterprise participation goals and procedures for the procurement of
4987-goods and services related to cannabis, including the cultivation, manufacturing, and
4988-dispensing of cannabis.
4989-
4990- (c) To the extent practicable, the goals and procedures specified in subsection (b)
4991-of this section shall be based on the requirements of Title 14, Subtitle 3 of the State Finance
4992-and Procurement Article and the regulations implementing that subtitle.
4993-
4994- SECTION 11. 12. AND BE IT FURTHER ENACTED, That:
4995-
4996- (a) (1) As soon as practicable after the effective date of this Act, the Cannabis
4997-Regulation and Enforcement Division Maryland Cannabis Administration established
4998-under § 36–201 of the Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5
4999-of this Act, shall issue a license to shall, by regulation, establish a process for issuing up to
5000-five grower licenses to operate as a cannabis grower under Title 36, Subtitle 4 of the
5001-Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 of this Act, to one
5002-applicant five applicants that:
5003-
5004- (1) is a are recognized class member members of Pigford v. Glickman, 185
5005-F.R.D. 82 (D.D.C. 1999), or In Re Black Farmers Litig., 856 F. Supp. 2d 1 (D.D.C. 2011).;
5006-
5007- (2) were awarded damages pursuant to the claims processes established for
5008-class members of Pigford v. Glickman or In Re Black Farmers Litig. and those damages
5009-were related to farming operations in Maryland;
5010-
5011- (3) have provided evidence, suitable to the Administration and consistent
5012-with constitutional and federal requirements, that they have not been fully compensated for
5013-the discrimination they have endured an d that they have experienced ongoing
5014-discrimination or the continued effects of past discrimination; and
5015-
5016- (4) satisfy any other criteria established by the Administration.
5017-
5018- (2) An applicant awarded a license under paragraph (1) of this subsection
5019-may subsequently apply for and be awarded a license to operate as a cannabis processor WES MOORE, Governor Ch. 254
5020-
5021-– 111 –
5022-under Title 36, Subtitle 4 of the Alcoholic Beverages and Cannabis Article, as enacted by
5023-Section 4 5 of this Act.
5024-
5025- (b) Notwithstanding any other provision of law, a license issued under subsection
5026-(a) of this section is in addition to and not subject to the limitations on the total number of
5027-licenses that the Division Administration may issue under Title 36, Subtitle 4 of the
5028-Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 of this Act.
5029-
5030- (c) If an applicant for a license to operate as a cannabis grower that is a
5031-recognized class member is not awarded a license under subsection (a) of this section:
5032-
5033- (1) the applicant may apply for a license in accordance with the provisions
5034-of Title 36 of the Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 of
5035-this Act;
5036-
5037- (2) the Division Administration shall allow the applicant to amend, if
5038-necessary, and resubmit the applicant’s application or withdraw the application entirely;
5039-and
5040-
5041- (3) the Division Administration may waive the initial application fee for
5042-the applicant but may charge the applicant a reasonable fee for the resubmission or an
5043-unamended or amended application.
5044-
5045- SECTION 13. 12. AND BE IT FURTHER ENACTED, That:
5046-
5047- (a) As soon as practicable after the effective date of this Act, the Alcohol, Tobacco,
5048-and Cannabis Commission Maryland Cannabis Administration shall contract with an
5049-independent consultant to complete a study on wholesale cannabis licenses.
5050-
5051- (b) The study shall include:
5052-
5053- (1) the costs to regulate wholesale cannabis licenses;
5054-
5055- (2) whether there is market necessity for wholesale cannabis licensing;
5056-
5057- (3) whether there is a need for wholesale cannabis licensing to alleviate
5058-supply demand and facilitate an equitable marketplace for suppliers and retailers; and
5059-
5060- (4) the approximate number of wholesale cannabis licenses appropriate for
5061-the size of the marketplace in the State.
5062-
5063- (c) On or before June 1, 2024, the Alcohol, Tobacco, and Cannabis Commission
5064-Maryland Cannabis Administration shall submit the results of the study required under
5065-subsection (a) of this section to the Governor and, in accordance with § 2–1257 of the State
5066-Government Article, the General Assembly.
5067- Ch. 254 2023 LAWS OF MARYLAND
5068-
5069-– 112 –
5070- SECTION 14. 13. AND BE IT FURTHER ENACTED, That:
5071-
5072- (a) The Maryland Economic Development Corporation shall identify in each of
5073-the following locations a site for proposed use as incubator space, to be established in
5074-accordance with § 36–406 of the Alcoholic Beverages and Cannabis Article, as enacted by
5075-Section 5 of this Act:
5076-
5077- (1) Caroline County, Cecil County, Dorchester County, Kent County,
5078-Queen Anne’s County, Somerset County, Talbot County, Wicomico County, or Worcester
5079-County;
5080-
5081- (2) Allegany County, Garrett County, or Washington County;
5082-
5083- (3) Baltimore City or a beltway community located in Anne Arundel
5084-County or Baltimore County; and
5085-
5086- (4) a beltway community located in Montgomery County or Prince George’s
5087-County.
5088-
5089- (b) The site identifications shall include:
5090-
5091- (1) the proposed locations for incubator spaces identified under subsection
5092-(a) of this section;
5093-
5094- (2) the square footage of the identified locations; and
5095-
5096- (3) the estimated costs for construction or renovation of the proposed
5097-location to prepare it for use as an incubator space.
5098-
5099- (c) In evaluating sites for proposed use as incubator spaces, the Maryland
5100-Economic Development Corporation shall consider, in addition to other appropriate
5101-criteria, the suitability of converting to incubator space obsolete or underutilized
5102-commercial and retail properties such as enclosed malls, big box stores, and warehouse
5103-spaces.
5104-
5105- (d) On or before January 1, 2024, the Maryland Economic Development
5106-Corporation shall submit a report on the identified sites and the qualifying criteria required
5107-by this section to the Governor and, in accordance with § 2–1257 of the State Government
5108-Article, the General Assembly.
5109-
5110- SECTION 15. 14. AND BE IT FURTHER ENACTED, That:
5111-
5112- (a) As soon as practicable after the effective date of this Act, the Alcohol, Tobacco,
5113-and Cannabis Commission Maryland Cannabis Administration shall conduct a study on
5114-on–site consumption of cannabis and cannabis products at retail premises of cannabis
5115-licensees. WES MOORE, Governor Ch. 254
5116-
5117-– 113 –
5118-
5119- (b) The study shall include:
5120-
5121- (1) a survey of regulations and trade practices for on–site consumption of
5122-cannabis and cannabis products in other states and countries;
5123-
5124- (2) authorizations and restrictions for the use of cannabis distributed at
5125-cannabis premises and for the removal of unconsumed cannabis or cannabis products from
5126-the premises;
5127-
5128- (3) operational procedures and controls for on–site consumption premises
5129-and the preparation, use, and consumption of cannabis and cannabis products;
5130-
5131- (4) training requirements and safeguards for employees of premises with
5132-on–site consumption of cannabis and cannabis products; and
5133-
5134- (5) recommendations for policies to implement on–site consumption of
5135-cannabis and cannabis products at suitable locations, including suggested legislative and
5136-regulatory changes.
5137-
5138- (c) The Commission Administration may contract with an independent
5139-contractor to conduct the study under this section.
5140-
5141- (d) On or before June 1, 2024, the Alcohol, Tobacco, and Cannabis Commission
5142-Maryland Cannabis Administration shall submit the results of the study required under
5143-subsection (a) of this section to the Governor and, in accordance with § 2–1257 of the State
5144-Government Article, the General Assembly.
5145-
5146- SECTION 16. AND BE IT FURTHER ENACTED, That:
5147-
5148- (a) The Alcohol, Tobacco, and Cannabis Commission shall study:
5149-
5150- (1) types of cannabis products and cannabis–infused products that are not
5151-meant to be smoked and that are available in neighboring states and other jurisdictions,
5152-such as low–concentration edibles, cannabis–infused soft drinks and other beverages, and
5153-related products;
5154-
5155- (2) issues relating to processing, packaging, labeling, and use of these
5156-cannabis products as they may be introduced into the Maryland adult–use cannabis
5157-regulatory system; and
5158-
5159- (3) regulatory and enforcement issues that may arise from the introduction
5160-and availability of these cannabis products in Maryland.
5161-
5162- (b) On or before July 1, 2024, the Commission shall submit a report, including
5163-any proposed legislative or regulatory changes, to the Governor and, in accordance with § Ch. 254 2023 LAWS OF MARYLAND
5164-
5165-– 114 –
5166-2–1257 of the State Government Article, the Senate Finance Committee and the House
5167-Economic Matters Committee.
5168-
5169- SECTION 15. AND BE IT FURTHER ENACTED, That:
5170-
5171- (a) This section applies only to a business awarded a grower license under § 9 of
5172-Chapter 598 of the Acts of the General Assembly of 2018 that does not hold a cannabis
5173-dispensary license.
5174-
5175- (b) (1) A licensed grower subject to this section may apply to the Maryland
5176-Cannabis Administration for and be awarded a standard dispensary license established
5177-under § 36–401(c)(1)(iii) of the Alcoholic Beverages and Cannabis Article as enacted by
5178-Section 5 of this Act.
5179-
5180- (2) If the licensed grower meets the minimum qualifications as determined
5181-by the Maryland Cannabis Administration for a standard dispensary license, the
5182-Administration shall award the grower a standard dispensary license.
5183-
5184- SECTION 16. AND BE IT FURTHER ENACTED, That, notwithstanding any other
5185-provision of law, on or before June 30, 2024, the Governor may transfer to the Maryland
5186-Cannabis Administration established under § 36–201 of the Alcoholic Beverages and
5187-Cannabis Article, as enacted by Section 5 of this Act, any positions and the associated funds,
5188-and any amount of the unexpended appropriation unde r the Alcohol and Tobacco
5189-Commission – Administration and Enforcement (E17A01.01), Alcohol and Tobacco
5190-Commission – Shared Services (E17A01.02), and Alcohol and Tobacco Commission –
5191-Cannabis Regulatory and Enforcement Division (E17A01.03) that was included in the fiscal
5192-year 2024 operating budget (House Bill 200 of the Acts of 2023).
5193-
5194- SECTION 17. AND BE IT FURTHER ENACTED, That, as soon as practicable after
5195-the effective date of this Act, the Alcohol, Tobacco, and Cannabis Commission and the
5196-Maryland Cannabis Administration shall enter into a memorandum of understanding that
5197-provides that both parties agree to collaborate in order to enforce the provisions of this Act
5198-with respect to unlicensed cannabis operations in the State.
5199-
5200- SECTION 18. AND BE IT FURTHER ENACTED, That notwithstanding §
5201-1–309(c)(1) of the Alcoholic Beverages and Cannabis Article, as enacted by Section 5 of this
5202-Act, an individual serving as the Executive Director of the Alcohol and Tobacco Commission
5203-on the effective date of this Act may continue to serve as the Executive Director of the Alcohol,
5204-Tobacco, and Cannabis Commission.
5205-
5206- SECTION 12. 17. 19. AND BE IT FURTHER ENACTED, That the publisher of the
5207-Annotated Code of Maryland, in consultation with and subject to the approval of the
5208-Department of Legislative Services, shall correct, with no further action required by the
5209-General Assembly, cross–references and terminology rendered incorrect by this Act. The
5210-publisher shall adequately describe any correction that is made in an editor’s note following
5211-the section affected. WES MOORE, Governor Ch. 254
5212-
5213-– 115 –
5214-
5215- SECTION 13. 18. 20. AND BE IT FURTHER ENACTED, That this Act is an
5216-emergency measure, is necessary for the immediate preservation of the public health or
5217-safety, has been passed by a yea and nay vote supported by three–fifths of all the members
5218-elected to each of the two Houses of the General Assembly, and shall take effect from the
5219-date it is enacted.
5220-
5221-Approved by the Governor, May 3, 2023.
1+
2+
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ Italics indicate opposite chamber/conference committee amendments.
9+ *hb0556*
10+
11+HOUSE BILL 556
12+A1, J1, Q4 EMERGENCY BILL (3lr0457)
13+ENROLLED BILL
14+— Economic Matters/Finance and Budget and Taxation —
15+Introduced by Delegates Wilson and Atterbeary
16+
17+Read and Examined by Proofreaders:
18+
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
23+
24+Sealed with the Great Seal and presented to the Governor, for his approval this
25+
26+_______ day of _______________ at ________________________ o’clock, ________M.
27+
28+______________________________________________
29+Speaker.
30+
31+CHAPTER ______
32+
33+AN ACT concerning 1
34+
35+Cannabis Reform 2
36+
37+FOR the purpose of renaming the Alcohol and Tobacco Commission to be the Alcohol, 3
38+Tobacco, and Cannabis Commission; establishing the Maryland Cannabis 4
39+Administration as an independent unit of State government; establishing a 5
40+regulatory and licensing system for adult–use cannabis under the Commission 6
41+Administration; imposing the sales and use tax on the sale of adult–use cannabis at 7
42+certain rates in certain fiscal years at a certain rate; establishing the Office of Social 8
43+Equity, in the Maryland Cannabis Commission and the Advisory Board on Medical 9
44+and Adult–Use Cannabis, and the Social Equity Partnership Grant Fund in the 10
45+Commission; altering provisions of law relating to the Community Reinvestment and 11
46+Repair Fund; establishing the Cannabis Regulation and Enforcement Division as an 12
47+independent unit in the Commission; requiring the Division Administration to 13
48+establish and maintain a State cannabis testing laboratory; establishing the 14
49+Cannabis Regulation and Enforcement Fund as a special, nonlapsing fund; requiring 15 2 HOUSE BILL 556
50+
51+
52+that the investment earnings of the Cannabis Regulation and Enforcement Fund be 1
53+credited to the Fund; repealing certain provisions of law establishing and governing 2
54+the Natalie M. LaPrade Medical Cannabis Commission; requiring the Division 3
55+Administration, rather than the Natalie M. LaPrade Medical Cannabis Commission, 4
56+to take certain actions related to medical cannabis; requiring the Division 5
57+Administration, on or before a certain date and under certain circumstances, to 6
58+convert medical cannabis licenses to licenses to operate a medical and adult–use 7
59+cannabis business; regulating the actions that local jurisdictions political 8
60+subdivisions may take regarding cannabis businesses; prohibiting certain 9
61+individuals from taking certain actions related to cannabis licensees and registrants; 10
62+establishing the Medical Cannabis Compassionate Use Fund as a special, nonlapsing 11
63+fund; requiring that the interest earnings of the Medical Cannabis Compassionate 12
64+Use Fund be credited to the Fund; authorizing certain entities to register with the 13
65+Division Administration to purchase cannabis for research purposes; establishing 14
66+prohibitions related to the advertising of cannabis and cannabis products; requiring 15
67+a person to be approved by the Division Administration to offer a certain training 16
68+program; establishing certain legal protections related to the use of cannabis; 17
69+establishing a Capital Access Program in the Department of Commerce; establishing 18
70+certain prohibitions related to banking by cannabis businesses; altering certain 19
71+provisions of law relating to the Cannabis Business Assistance Fund; exempting the 20
72+Commission from State procurement requirements under certain circumstances; 21
73+requiring a cannabis licensee, under certain circumstances, to comply with the 22
74+State’s Minority Business Enterprise Program; requiring the Commission to contract 23
75+with an independent consultant to complete a study on wholesale cannabis licenses; 24
76+requiring the study to be submitted to certain persons on or before a certain date; 25
77+requiring the Maryland Economic Development Corporation to identify certain 26
78+locations and submit a certain report to the General Assembly; requiring the 27
79+Commission to study and report on certain matters relating to on–site consumption 28
80+and certain cannabis products; requiring the Administration to contract with an 29
81+independent consultant to complete a study on wholesale cannabis licenses; requiring 30
82+the study to be submitted to certain persons on or before a certain date; requiring the 31
83+Maryland Economic Development Corporation to identify certain locations and 32
84+submit a certain report to the General Assembly; requiring the Administration to 33
85+study and report on certain matters relating to on–site consumption; requiring that 34
86+certain growers be awarded certain dispensary licenses under certain circumstances; 35
87+and generally relating to medical and adult–use cannabis. 36
88+
89+BY repealing 37
90+ Article – Health – General 38
91+ Section 13–3301 through 13–3316 and the subtitle “Subtitle 33. Natalie M. LaPrade 39
92+ Medical Cannabis Commission” 40
93+ Annotated Code of Maryland 41
94+ (2019 Replacement Volume and 2022 Supplement) 42
95+
96+BY repealing 43
97+ Article – Health – General 44 HOUSE BILL 556 3
98+
99+
100+ The subtitle designation “Subtitle 46. Community Reinvestment and Repair Fund” 1
101+ immediately preceding Section 13–4601 2
102+ Annotated Code of Maryland 3
103+ (2019 Replacement Volume and 2022 Supplement) 4
104+ (As enacted by Chapter 26 of the Acts of the General Assembly of 2022) 5
105+
106+BY transferring 6
107+ Article – Health – General 7
108+Section 13–4601 8
109+ Annotated Code of Maryland 9
110+ (2019 Replacement Volume and 2022 Supplement) 10
111+ (As enacted by Chapter 26 of the Acts of the General Assembly of 2022) 11
112+to be 12
113+ Article – Alcoholic Beverages 13
114+Section 1–322 14
115+ Annotated Code of Maryland 15
116+ (2016 Volume and 2022 Supplement) 16
117+
118+BY renumbering 17
119+ Article – Alcoholic Beverages 18
120+ Section 1–101(d) through (y) and (z) through (ii) 19
121+ to be Section 1–101(e) through (z) and (bb) through (kk), respectively 20
122+ Annotated Code of Maryland 21
123+ (2016 Volume and 2022 Supplement) 22
124+
125+BY repealing and reenacting, without amendments, 23
126+ Article – Alcoholic Beverages 24
127+Section 1–101(a) 25
128+ Annotated Code of Maryland 26
129+ (2016 Volume and 2022 Supplement) 27
130+
131+BY adding to 28
132+ Article – Alcoholic Beverages 29
133+ Section 1–101(d) and (aa), 1–309.1, 1–309.2, and 1–323; and 36–101 through 30
134+ 36–1507 to be under the new division “Division III. Cannabis” 31
135+ Annotated Code of Maryland 32
136+ (2016 Volume and 2022 Supplement) 33
137+
138+BY repealing and reenacting, with amendments, 34
139+ Article – Alcoholic Beverages 35
140+ Section 1–101(g) and (r) 36
141+ Annotated Code of Maryland 37
142+ (2016 Volume and 2022 Supplement) 38
143+ (As enacted by Section 4 of this Act) 39
144+
145+BY repealing and reenacting, with amendments, 40
146+ Article – Alcoholic Beverages 41 4 HOUSE BILL 556
147+
148+
149+Section 1–101(f) and (q) 1–202; and 1–302, 1–303(a), 1–304, 1–307 through 1–310, 1
150+and 1–313 to be under the amended subtitle “Subtitle 3. Alcohol, Tobacco, and 2
151+Cannabis Commission” 3
152+ Annotated Code of Maryland 4
153+ (2016 Volume and 2022 Supplement) 5
154+
155+BY adding to 6
156+ Article – Alcoholic Beverages 7
157+Section 1–309.1, 1–309.2, and 1–323; and 36–101 through 36–1507 to be under the 8
158+new division “Division III. Cannabis” 9
159+ Annotated Code of Maryland 10
160+ (2016 Volume and 2022 Supplement) 11
161+
162+BY repealing and reenacting, with amendments, 12
163+ Article – Alcoholic Beverages 13
164+Section 1–322 14
165+ Annotated Code of Maryland 15
166+ (2016 Volume and 2022 Supplement) 16
167+ (As enacted by Section 3 of this Act) 17
168+
169+BY adding to 18
170+ Article – Tax – General 19
171+Section 2–1302.2, 11–104(k), and 11–245 20
172+Annotated Code of Maryland 21
173+ (2022 Replacement Volume) 22
174+
175+BY repealing and reenacting, with amendments, 23
176+ Article – Tax – General 24
177+Section 2–1303 25
178+ Annotated Code of Maryland 26
179+ (2022 Replacement Volume) 27
180+
181+BY repealing and reenacting, with amendments, 28
182+ Article – Economic Development 29
183+Section 5–1901 30
184+ Annotated Code of Maryland 31
185+ (2018 Replacement Volume and 2022 Supplement) 32
186+
187+BY repealing and reenacting, without amendments, 33
188+ Article – State Finance and Procurement 34
189+Section 6–226(a)(2)(i) 35
190+ Annotated Code of Maryland 36
191+ (2021 Replacement Volume and 2022 Supplement) 37
192+
193+BY repealing and reenacting, with amendments, 38
194+ Article – State Finance and Procurement 39
195+Section 6–201(e) and 6–226(a)(2)(ii)170. and 171. 40 HOUSE BILL 556 5
196+
197+
198+ Annotated Code of Maryland 1
199+ (2021 Replacement Volume and 2022 Supplement) 2
200+
201+BY adding to 3
202+ Article – State Finance and Procurement 4
203+Section 6–226(a)(2)(ii)172. and 173. 5
204+ Annotated Code of Maryland 6
205+ (2021 Replacement Volume and 2022 Supplement) 7
206+
207+BY repealing and reenacting, with amendments, 8
208+ Article – State Personnel and Pensions 9
209+ Section 23–201(a)(13) and (14) and 26–201(a)(22) 10
210+ Annotated Code of Maryland 11
211+ (2015 Replacement Volume and 2022 Supplement) 12
212+
213+BY adding to 13
214+ Article – State Personnel and Pensions 14
215+ Section 23–201(a)(15) 15
216+ Annotated Code of Maryland 16
217+ (2015 Replacement Volume and 2022 Supplement) 17
218+
219+BY repealing and reenacting, with amendments, 18
220+ Article – Health – General 19
221+Section 13–4505 20
222+ Annotated Code of Maryland 21
223+ (2019 Replacement Volume and 2022 Supplement) 22
224+
225+BY renaming 23
226+ Article – Alcoholic Beverages 24
227+ to be Article – Alcoholic Beverages and Cannabis 25
228+ Annotated Code of Maryland 26
229+ (2016 Volume and 2022 Supplement) 27
230+
231+ SECTION 1. BE IT ENACT ED BY THE GENERAL ASSEMBLY OF MARYLAND, 28
232+That Section(s) 13–3301 through 13–3316 and the subtitle “Subtitle 33. Natalie M. LaPrade 29
233+Medical Cannabis Commission” of Article – Health – General of the Annotated Code of 30
234+Maryland be repealed. 31
235+
236+ SECTION 2. AND BE IT FURTHER ENACTED, That the subtitle designation 32
237+“Subtitle 46. Community Reinvestment and Repair Fund” immediately preceding § 33
238+13–4601 of the Health – General Article be repealed. 34
239+
240+ SECTION 3. AND BE IT FURTHER ENACTED, That Section(s) 13 –4601 of Article 35
241+– Health – General of the Annotated Code of Maryland be transferred to be Section(s) 36
242+1–322 of Article – Alcoholic Beverages of the Annotated Code of Maryland. 37
243+ 6 HOUSE BILL 556
244+
245+
246+ SECTION 4. AND BE IT FURTHER ENACTED, That Section(s) 1 –101(d) through 1
247+(y) and (z) through (ii) of Article – Alcoholic Beverages of the Annotated Code of Maryland 2
248+be renumbered to be Section(s) 1–101(e) through (z) and (bb) through (kk), respectively. 3
249+
250+ SECTION 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 4
251+as follows: 5
252+
253+Article – Alcoholic Beverages 6
254+
255+1–101. 7
256+
257+ (a) In this article the following words have the meanings indicated. 8
258+
259+ (D) (1) “CANNABIS” MEANS THE PLANT CANNABIS SATIVA L. AND ANY 9
260+PART OF THE PLANT , INCLUDING ALL DERIVA TIVES, EXTRACTS, CANNABINOIDS , 10
261+ISOMERS, ACIDS, SALTS, AND SALTS OF ISOMERS , WHETHER GROWING OR N OT, WITH 11
262+A DELTA–9–TETRAHYDROCANNABINOL CONCENTRATION GREATE R THAN 0.3% ON A 12
263+DRY WEIGHT BASIS . 13
264+
265+ (2) “CANNABIS” INCLUDES CANNABIS PR ODUCTS. 14
266+
267+ (3) “CANNABIS” DOES NOT INCLUDE HEM P OR HEMP PRODUCTS , AS 15
268+DEFINED IN § 14–101 OF THE AGRICULTURE ARTICLE. 16
269+
270+ (f) (g) “Commission” means the Alcohol [and], Tobacco, AND CANNABIS 17
271+Commission. 18
272+
273+ (q) (r) (1) “License holder” means the holder of [a] AN ALCOHOLIC BEVERAGE 19
274+BEVERAGES license issued or a permit granted under this article. 20
275+
276+ (2) “License holder” includes: 21
277+
278+ (i) a county liquor control board and a county dispensary; and 22
279+
280+ (ii) for the delivery and billing purposes of Title 2, Subtitle 3 and §§ 23
281+2–213 and 2–314 of this article, a corporation on behalf of which an individual has obtained 24
282+a license. 25
283+
284+ (AA) “POLITICAL SUBDIVISION ” MEANS A COUNTY OR A MUNICIPALITY. 26
285+
286+1–202. 27
287+
288+ (a) To the extent that a statement of a general rule of law conflicts or is 28
289+inconsistent with an exception or a qualification applicable to a special area, particular 29
290+person, or set of circumstances, the exception or qualification prevails. 30
291+ HOUSE BILL 556 7
292+
293+
294+ (b) A provision in Division II of this article prevails over a conflicting or 1
295+inconsistent provision in Division I of this article or a provision in the Tax – General Article 2
296+relating to alcoholic beverages. 3
297+
298+ (C) A PROVISION IN DIVISION III OF THIS ARTICLE PREV AILS OVER A 4
299+CONFLICTING OR INCON SISTENT PROVISION IN DIVISION I OF THIS ARTICLE OR A 5
300+PROVISION IN THE TAX – GENERAL ARTICLE RELATING TO C ANNABIS. 6
301+
302+Subtitle 3. Alcohol [and], Tobacco, AND CANNABIS Commission. 7
303+
304+1–302. 8
305+
306+ There is an Alcohol [and], Tobacco, AND CANNABIS Commission. 9
307+
308+1–303. 10
309+
310+ (a) (1) The Commission consists of [five] SEVEN members to be appointed by 11
311+the Governor with the advice and consent of the Senate. 12
312+
313+ (2) The presiding officer of either House of the General Assembly may 13
314+recommend to the Governor a list of individuals for appointment to the Commission. 14
315+
316+ (3) Of the Commission members: 15
317+
318+ (i) one shall be knowledgeable and experienced in public health 16
319+matters; 17
320+
321+ (ii) one shall be knowledgeable and experienced in law enforcement 18
322+matters; 19
323+
324+ (iii) one shall be knowledgeable and experienced in the alcoholic 20
325+beverages industry; [and] 21
326+
327+ (IV) TWO SHALL BE KNOWLED GEABLE AND EXPERIENC ED IN 22
328+THE CANNABIS INDUSTR Y ONE SHALL HAVE EXPER TISE IN CANNABIS RES EARCH AND 23
329+POLICY; 24
330+
331+ (V) ONE SHALL HAVE EXPER TISE IN ALCOHOL AND TOBACCO 25
332+POLICY; AND 26
333+
334+ [(iv)] (V) (VI) two shall be members of the public who ar e 27
335+knowledgeable and experienced in fiscal matters and shall have substantial experience: 28
336+
337+ 1. as an executive with fiduciary responsibilities in charge of 29
338+a large organization or foundation; 30
339+ 8 HOUSE BILL 556
340+
341+
342+ 2. in an academic field relating to finance or economics; or 1
343+
344+ 3. as an accountant, an economist, or a financial analyst. 2
345+
346+ (4) In addition to the members appointed under paragraph (3) of this 3
347+subsection, the Secretary of Health and the Secretary of State Police, or their designees, 4
348+may participate in the Commission as ex officio nonvoting members. 5
349+
350+1–304. 6
351+
352+ (a) A member of the Commission may not: 7
353+
354+ (1) have a direct or indirect financial interest, ownership, or management, 8
355+including holding any stocks, bonds, or other similar financial interests, in the alcohol [or], 9
356+tobacco, OR CANNABIS industries; 10
357+
358+ (2) have an official relationship to a person who holds a license or permit 11
359+under this article or Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation 12
360+Article; 13
361+
362+ (3) be an elected official; 14
363+
364+ (4) receive or share in, directly or indirectly, the receipts or proceeds of any 15
365+activities conducted in the alcohol [or], tobacco, OR CANNABIS industries; 16
366+
367+ (5) have a beneficial interest in any contract for the manufacture or sale of 17
368+any device or product or the provision of any independent consulting services in connection 18
369+with a holder of a license or permit issued under this article or Title 16, Title 16.5, Title 19
370+16.7, or Title 16.9 of the Business Regulation Article; or 20
371+
372+ (6) accept a contribution of money or property worth at least $100 from an 21
373+entity or individual associated with the alcohol [or], tobacco, OR CANNABIS industries with 22
374+respect to the regulation of alcohol [or], tobacco, OR CANNABIS. 23
375+
376+ (b) A member of the Commission shall file a financial disclosure statement with 24
377+the State Ethics Commission in accordance with Title 5, Subtitle 6 of the General 25
378+Provisions Article. 26
379+
380+1–307. 27
381+
382+ (a) The Commission has the powers and duties set forth in this section. 28
383+
384+ (b) The Commission shall: 29
385+
386+ (1) educate the public, by resource sharing and serving as an information 30
387+clearinghouse, on such topics as: 31 HOUSE BILL 556 9
388+
389+
390+
391+ (i) recent increases in alcohol content for popular beer and other 1
392+beverages; 2
393+
394+ (ii) the proper limits of drinking for adults; 3
395+
396+ (iii) the adverse consequences of surpassing those limits; 4
397+
398+ (iv) parental or adult responsibility for serving alcohol to underage 5
399+individuals; and 6
400+
401+ (v) comparable topics relating to smoking, vaping, tobacco, other 7
402+tobacco products, [and] electronic nicotine delivery systems, CANNABIS, AND CANNABIS 8
403+PRODUCTS; and 9
404+
405+ (2) subject to federal approval, ensure that all alcoholic beverages sold in 10
406+the State with an alcohol content exceeding 4.5% by volume bear a large and conspicuous 11
407+label stating the percentage of alcohol content. 12
408+
409+ (c) (1) The Commission shall conduct studies of: 13
410+
411+ (i) the operation and administration of similar laws in other states 14
412+or countries; and 15
413+
414+ (ii) federal laws that may affect the operation of the alcohol [or], 16
415+tobacco, OR CANNABIS industries, the literature on those industries, and the reaction of 17
416+residents of the State to existing and potential features of those industries. 18
417+
418+ (2) The Commission shall submit to the Governor and, in accordance with 19
419+§ 2–1257 of the State Government Article, the General Assembly the studies required under 20
420+this subsection. 21
421+
422+1–308. 22
423+
424+ The Commission shall develop best practices for: 23
425+
426+ (1) the dedication of a minimum effective portion of the budget of a local 24
427+licensing board to administrative enforcement activities, such as inspections, compliance 25
428+checks, overservice, operations, and trade practice violations; 26
429+
430+ (2) the carrying out of compliance checks for alcoholic beverages licenses, 27
431+in which each license is checked at least once a year; 28
432+
433+ (3) the development of guidelines for the minimum capacity of inspections 29
434+carried out by inspectors of local licensing boards, based on the number and type of licensed 30
435+outlets in the licensing jurisdiction; 31 10 HOUSE BILL 556
436+
437+
438+
439+ (4) ensuring that alcoholic beverages inspections be based on data such as 1
440+the violation history of the license holder, and calls for emergency assistance, emergency 2
441+medical service, or nonemergency service, so that resources are being allocated based on 3
442+where the greatest need is; 4
443+
444+ (5) the reporting of aggregate data between local police and local licensing 5
445+boards; 6
446+
447+ (6) the development of mandatory State–provided training for liquor 7
448+inspectors; 8
449+
450+ (7) reporting by the State to the affected local licensing board of a 9
451+State–issued license or permit within 10 days after the State receives an application; 10
452+
453+ (8) the development of a public health impact statement for all changes to 11
454+the State alcoholic beverages laws; [and] 12
455+
456+ (9) ensuring that: 13
457+
458+ (i) all license holders, managers, and servers receive certification 14
459+from an approved alcohol awareness program; and 15
460+
461+ (ii) at least one employee who is certified in an alcohol awareness 16
462+program be on the licensed premises at all times when alcoholic beverages are served; 17
463+
464+ (10) REGULATING THE CANNA BIS INDUSTRY AND IMPLEMENTING 18
465+PUBLIC HEALTH MEASUR ES RELATING TO CANNA BIS; AND 19
466+
467+ (11) REGULATING , TO THE EXTENT POSSIB LE, MEDICAL AND 20
468+ADULT–USE CANNABIS IN A SI MILAR MANNER . 21
469+
470+1–309. 22
471+
472+ (a) With the advice and consent of the Senate, the Governor shall appoint an 23
473+Executive Director of the Commission. 24
474+
475+ (b) The Executive Director serves at the pleasure of the Governor. 25
476+
477+ (c) The Executive Director shall: 26
478+
479+ (1) have the training and experience, including knowledge of the Maryland 27
480+alcohol, TOBACCO, AND CANNABIS regulatory system, that is needed to direct the work of 28
481+the Commission; AND 29
482+ HOUSE BILL 556 11
483+
484+
485+ (2) be a sworn police officer with the powers granted to an officer or 1
486+employee of the Field Enforcement Division under § 1–313 of this subtitle; and 2
487+
488+ (3) devote full time to the duties of office and may not engage in another 3
489+profession or occupation. 4
490+
491+ (d) THE EXECUTIVE DIRECTOR MAY BE A SWO RN POLICE OFFICER WI TH 5
492+THE POWERS GRANTED T O AN OFFICER OR EMPL OYEE OF THE FIELD 6
493+ENFORCEMENT DIVISION UNDER § 1–313 OF THIS SUBTITLE. 7
494+
495+ (E) The Executive Director is entitled to the salary provided in the State budget. 8
496+
497+1–309.1. 9
498+
499+ (A) (1) THERE IS AN OFFICE OF SOCIAL EQUITY WITHIN IN THE 10
500+COMMISSION. 11
501+
502+ (2) THE OFFICE IS AN INDEPEND ENT OFFICE THAT FUNC TIONS 12
503+WITHIN THE MARYLAND CANNABIS ADMINISTRATION . 13
504+
505+ (B) (1) THE GOVERNOR SHALL APPOIN T AN EXECUTIVE DIRECTOR OF 14
506+THE OFFICE OF SOCIAL EQUITY. 15
507+
508+ (2) THE EXECUTIVE DIRECTOR OF THE OFFICE OF SOCIAL EQUITY 16
509+SHALL HAVE AT LEAST 5 YEARS OF EXPERIENCE IN CIVIL RIGHTS ADVO CACY, CIVIL 17
510+RIGHTS LITIGATION, OR ANOTHER AREA OF S OCIAL JUSTICE. 18
511+
512+ (C) THE OFFICE OF SOCIAL EQUITY MAY EMPLOY STA FF AND RETAIN 19
513+CONTRACTORS AS MAY B E REQUIRED TO CARRY OUT THE FUNCTIONS OF THE 20
514+OFFICE. 21
515+
516+ (D) THE OFFICE OF SOCIAL EQUITY SHALL: 22
517+
518+ (1) PROMOTE AND ENCOURAG E FULL PARTICIPATION IN THE 23
519+REGULATED CANNABIS I NDUSTRY BY PEOPLE FR OM COMMUNITIES THAT HAVE 24
520+PREVIOUSLY BEEN DISP ROPORTIONATELY HARMED IMPACTED BY THE WAR ON 25
521+DRUGS IN ORDER TO PO SITIVELY IMPACT THOS E COMMUNITIES ; 26
522+
523+ (2) CONSULT WITH AND ASS IST THE COMPTROLLER IN THE 27
524+ADMINISTRATION OF TH E COMMUNITY REINVESTMENT AND REPAIR FUND UNDER 28
525+§ 1–322 OF THIS SUBTITLE ; 29
526+ 12 HOUSE BILL 556
527+
528+
529+ (3) CONSULT WITH AND ASS IST THE DEPARTMENT OF COMMERCE IN 1
530+THE ADMINISTRATION O F THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 2
531+5–1901 OF THE ECONOMIC DEVELOPMENT ARTICLE; 3
532+
533+ (4) IDENTIFY AND OPPOSE REGULATIONS THAT UNN ECESSARILY 4
534+BURDEN OR UNDERMINE THE LEGISLATIVE INTE NT OF THE OFFICE, INCLUDING 5
535+REGULATIONS THAT IMP OSE UNDUE RESTRICTIO NS OR FINANCIAL REQU IREMENTS; 6
536+
537+ (5) PROVIDE RECOMMENDATI ONS TO THE COMMISSION ON 7
538+REGULATIONS RELATED TO: 8
539+
540+ (I) DIVERSITY; AND 9
541+
542+ (II) SOCIAL EQUITY APPLIC ATIONS; 10
543+
544+ (6) WORK WITH THE COMMISSION CANNABIS REGULATION AND 11
545+ENFORCEMENT DIVISION MARYLAND CANNABIS ADMINISTRATION TO IMPLEMENT 12
546+FREE TECHNICAL ASSIS TANCE FOR SOCIA L EQUITY AND MINORIT Y CANNABIS 13
547+BUSINESS APPLICANTS ; 14
548+
549+ (7) PRODUCE REPORTS AND RECOMMENDATIONS ON D IVERSITY AND 15
550+EQUITY IN OWNERSHIP , MANAGEMENT , AND EMPLOYMENT IN TH E LEGAL CANNABIS 16
551+ECONOMY; AND 17
552+
553+ (8) ASSIST BUSINESSES WI TH OBTAINING FINANCI NG THROUGH THE 18
554+CAPITAL ACCESS PROGRAM UNDER TITLE 36, SUBTITLE 14 OF THIS ARTICLE; AND 19
555+
556+ (9) DETERMINE WHICH INDI VIDUALS AND ENTITIES SHALL BE 20
557+GRANTED LOANS OR GRA NTS FROM THE CANNABIS BUSINESS ASSISTANCE FUND 21
558+UNDER § 5–1901 OF THE ECONOMIC DEVELOPMENT ARTICLE. 22
559+
560+ (E) (1) ON OR BEFORE MARCH 1 EACH YEAR, THE OFFICE OF SOCIAL 23
561+EQUITY SHALL PRODUCE AND MAKE PUBLICLY AV AILABLE A REPORT ON HOW THE 24
562+FUNDS IN THE COMMUNITY REINVESTMENT AND REPAIR FUND UNDER § 1–322 OF 25
563+THIS SUBTITLE AND THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 5–1901 26
564+OF THE ECONOMIC DEVELOPMENT ARTICLE WERE WAS ALLOCATED DURING THE 27
565+IMMEDIATELY PRECEDIN G CALENDAR YEAR . 28
566+
567+ (2) THE REPORT SHALL ALSO BE SUBMITTED TO THE GENERAL 29
568+ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 30
569+
570+ (F) (1) ON OR BEFORE NOVEMBER 1 EACH YEAR, THE OFFICE OF SOCIAL 31
571+EQUITY SHALL SOLICIT PUBLIC INPUT ON THE USES OF THE FUNDS IN THE 32
572+COMMUNITY REINVESTMENT AND REPAIR FUND UNDER § 1–322 OF THIS SUBTITLE 33 HOUSE BILL 556 13
573+
574+
575+AND THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 5–1901 OF THE 1
576+ECONOMIC DEVELOPMENT ARTICLE. 2
577+
578+ (2) ON OR BEFORE DECEMBER 15 EACH YEAR, THE OFFICE OF 3
579+SOCIAL EQUITY SHALL PUBLISH A REVIEW OF THE INPU T RECEIVED UNDER 4
580+PARAGRAPH (1) OF THIS SUBSECTION O N A PUBLICLY ACCESSI BLE PART OF THE 5
581+COMMISSION’S WEBSITE. 6
582+
583+1–309.2. 7
584+
585+ (A) IN THIS SECTION, “ADVISORY BOARD” MEANS THE ADVISORY BOARD 8
586+ON MEDICAL AND ADULT–USE CANNABIS. 9
587+
588+ (B) THERE IS AN ADVISORY BOARD ON MEDICAL AND ADULT–USE 10
589+CANNABIS. 11
590+
591+ (C) THE ADVISORY BOARD SHALL: 12
592+
593+ (1) CONSIDER ALL MATTERS SUBMITTED TO IT BY T HE COMMISSION, 13
594+THE GOVERNOR, THE CANNABIS REGULATION AND ENFORCEMENT DIVISION 14
595+MARYLAND CANNABIS ADMINISTRATION , OR THE GENERAL ASSEMBLY; AND 15
596+
597+ (2) ON ITS OWN INITIATIV E, PROVIDE RECOMMENDATI ONS TO THE 16
598+COMMISSION OR THE CANNABIS REGULATION AND ENFORCEMENT DIVISION 17
599+MARYLAND CANNABIS ADMINISTRATION ESTABLISHED UNDER § 36–201 OF THIS 18
600+ARTICLE REGARDING GU IDELINES, RULES, AND REGULATIONS THAT THE ADVISORY 19
601+BOARD CONSIDERS IMPOR TANT OR NECESSARY FO R REVIEW AND CONSIDE RATION 20
602+BY THE COMMISSION OR THE CANNABIS REGULATION AND ENFORCEMENT 21
603+DIVISION MARYLAND CANNABIS ADMINISTRATION . 22
604+
605+ (D) THE ADVISORY BOARD CONSISTS OF : 23
606+
607+ (1) THE DIRECTOR OF THE CANNABIS REGULATION AND 24
608+ENFORCEMENT DIVISION MARYLAND CANNABIS ADMINISTRATION , WHO SHA LL 25
609+SERVE AS CHAIR OF THE ADVISORY BOARD; AND 26
610+
611+ (2) THE FOLLOWING MEMBER S, APPOINTED BY THE GOVERNOR WITH 27
612+THE ADVICE AND CONSE NT OF THE SENATE: 28
613+
614+ (I) THREE MEMBERS THAT H AVE SUBSTANTIAL EXPE RIENCE IN 29
615+ONE OR MORE OF THE F OLLOWING: 30
616+
617+ 1. CANNABIS LAW , SCIENCE, OR POLICY; 31
618+ 14 HOUSE BILL 556
619+
620+
621+ 2. PUBLIC HEALTH OR HEA LTH CARE; 1
622+
623+ 3. AGRICULTURE ; 2
624+
625+ 4. FINANCE; OR 3
626+
627+ 5. ADDICTION TREATMENT ; 4
628+
629+ (II) ONE ACADEMIC RESEARC HER WITH AT LEAST 5 YEARS OF 5
630+EXPERIENCE IN SOCIAL OR HEALTH EQUITY ; 6
631+
632+ (III) ONE REPRESENTATIVE O F AN INDEPENDENT TES TING 7
633+LABORATORY REGISTERE D UNDER § 36–408 OF THIS ARTICLE; 8
634+
635+ (IV) THREE TWO REPRESENTATIVES WHO HOLD A STANDARD 9
636+GROWER, PROCESSOR, OR DISPENSARY LICENSE UNDER § 36–401 OF THIS ARTICLE; 10
637+
638+ (V) TWO REPRESENTATIVES WHO HOLD A STANDARD 11
639+PROCESSOR LICENSE UN DER § 36–401 OF THIS ARTICLE; 12
640+
641+ (VI) TWO REPRESENTATIVES WHO HOLD A STANDARD 13
642+DISPENSARY LICENSE U NDER § 36–401 OF THIS ARTICLE; 14
643+
644+ (V) (VII) THREE TWO REPRESENTATIVES WHO HOLD A MICRO 15
645+GROWER, PROCESSOR, OR DISPENSARY LICENSE UNDER § 36–401 OF THIS ARTICLE; 16
646+
647+ (VIII) TWO REPRESENTATIVES WHO HOLD A MICRO PRO CESSOR 17
648+LICENSE UNDER § 36–401 OF THIS ARTICLE; 18
649+
650+ (IX) TWO REPRESENTATIVES WHO HOLD A MICRO DIS PENSARY 19
651+LICENSE UNDER § 36–401 OF THIS ARTICLE; 20
652+
653+ (X) ONE REPRESENTATIVE WHO H OLDS AN INCUBATOR SP ACE 21
654+LICENSE UNDER § 36–401 OF THIS ARTICLE; 22
655+
656+ (XI) ONE REPRESENTATIVE W HO HOLDS AN ON –SITE 23
657+CONSUMPTION LICENSE UNDER § 36–401 OF THIS ARTICLE; 24
658+
659+ (VI) (XII) ONE REPRESENTATIVE O F AN ORGANIZATION TH AT 25
660+ADVOCATES ON BEHALF OF PATIENTS W HO ENGAGE IN THE MED ICAL USE OF 26
661+CANNABIS; 27
662+ HOUSE BILL 556 15
663+
664+
665+ (VII) (XIII) ONE REPRESENTATIVE O F AN ORGANIZATION TH AT 1
666+ADVOCATES ON BEHALF OF CONSUMERS WHO ENG AGE IN THE ADULT USE OF 2
667+CANNABIS; AND 3
668+
669+ (VIII) (XIV) ONE HEALTH CARE PROV IDER WHO IS REGIS TERED 4
670+TO CERTIFY PATIENTS TO OBTAIN MEDICAL CA NNABIS UNDER § 36–301 OF THIS 5
671+ARTICLE. 6
672+
673+ (E) THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE 7
674+MAY RECOMMEND TO THE GOVERNOR A LIST OF IN DIVIDUALS FOR APPOIN TMENT 8
675+TO THE ADVISORY BOARD. 9
676+
677+ (F) (1) THE TERM OF A MEMBER OF TH E ADVISORY BOARD IS 4 YEARS. 10
678+
679+ (2) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL 11
680+A SUCCESSOR IS APPOI NTED AND QUALIFIES . 12
681+
682+ (3) AN APPOINTED MEMBER M AY NOT SERVE MORE TH AN TWO FULL 13
683+TERMS. 14
684+
685+ (4) THE POSITIONS FOR MEM BERS APPOINTED UNDER SUBS ECTION 15
686+(D)(2)(VII) THROUGH (XI) OF THIS SECTION BECO ME EFFECTIVE WHEN TH E FIRST 16
687+LICENSES ARE ISSUED UNDER THOSE RESPECTI VE LICENSE TYPES . 17
688+
689+ (G) AN APPOINTED MEMBER O F THE ADVISORY BOARD MUST BE : 18
690+
691+ (1) AT LEAST 25 YEARS OLD; 19
692+
693+ (2) A RESIDENT OF THE STATE WHO HAS RESIDED IN THE STATE FOR 20
694+AT LEAST THE IMMEDIA TELY PRECEDING 5 YEARS BEFORE THE APP OINTMENT; AND 21
695+
696+ (3) A REGISTERED VOTER O F THE STATE. 22
697+
698+ (H) THE ADVISORY BOARD SHALL ESTABLISH AT LEAST TWO 23
699+SUBCOMMITTEES TO FOC US ON MEDICAL AN D ADULT–USE CANNABIS. 24
700+
701+ (I) TO THE EXTENT PRACTIC ABLE AND CONSISTENT WITH FEDERAL AND 25
702+STATE LAW, THE MEMBERSHIP OF TH E ADVISORY BOARD SHALL REFLECT T HE 26
703+RACIAL, ETHNIC, AND GENDER DIVERSITY OF THE STATE. 27
704+
705+1–310. 28
706+
707+ The Executive Director and all employees in the Office of the Executive Director may 29
708+not accept a contribution of money or property worth at least $100 from an entity or 30 16 HOUSE BILL 556
709+
710+
711+individual associated with the alcohol [or], tobacco, OR CANNABIS industries with respect 1
712+to regulation of alcohol [or], tobacco, OR CANNABIS. 2
713+
714+1–313. 3
715+
716+ (a) There is a Field Enforcement Division in the Office of the Executive Director. 4
717+
718+ (b) (1) The Field Enforcement Division may employ officers and employees as 5
719+provided in the State budget. 6
720+
721+ (2) The officers and employees of the Field Enforcement Division: 7
722+
723+ (i) shall be sworn police officers; 8
724+
725+ (ii) shall have the powers, duties, and responsibilities of peace 9
726+officers to enforce the provisions of this article relating to: 10
727+
728+ 1. the unlawful importation of alcoholic beverages [and], 11
729+tobacco, AND CANNABIS into the State; 12
730+
731+ 2. the unlawful manufacture of alcoholic beverages [and], 13
732+tobacco, AND CANNABIS in the State; 14
733+
734+ 3. the transportation and distribution throughout the State 15
735+of alcoholic beverages [and], tobacco, AND CANNABIS that are manufactured illegally and 16
736+on which any alcoholic beverages taxes [or], tobacco taxes, OR CANNABIS TAXES imposed 17
737+by the State are due and unpaid; and 18
738+
739+ 4. the manufacture, sale, barter, tr ansportation, 19
740+distribution, or other form of owning, handling, or dispersing alcoholic beverages [or], 20
741+tobacco, OR CANNABIS by any person not licensed or authorized under this article, 21
742+provisions of the Tax – General Article relating to alcoholic beverages [or], tobacco, OR 22
743+CANNABIS, or provisions of the Business Regulation Article relating to tobacco OR 23
744+CANNABIS; and 24
745+
746+ (iii) may make cooperative arrangements for and work and cooperate 25
747+with the Office of the Comptroller, local State’s Attorneys, sheriffs, bailiffs, police, and other 26
748+prosecuting and peace officers to enforce this article. 27
749+
750+ (c) The Field Enforcement Division: 28
751+
752+ (1) shall consult with and advise the local State’s Attorneys and other law 29
753+enforcement officials and police officers regarding enforcement problems in their respective 30
754+jurisdictions; and 31
755+ HOUSE BILL 556 17
756+
757+
758+ (2) may recommend changes to improve the administration of this article, 1
759+provisions of the Tax – General Article relating to alcoholic beverages [and], tobacco, AND 2
760+CANNABIS, and provisions of the Business Regulation Article relating to tobacco. 3
761+
762+1–322. 4
763+
764+ (a) (1) There is a Community Reinvestment and Repair Fund. 5
765+
766+ (2) The purpose of the Fund is to provide funds to community–based 6
767+organizations that serve communities determined by THE OFFICE OF SOCIAL EQUITY, 7
768+IN CONSULTATION WITH the Office of the Attorney General, to have been the most 8
769+impacted by disproportionate enforcement of the cannabis prohibition before July 1, 2022. 9
770+
771+ (3) The Comptroller shall administer the Fund. 10
772+
773+ (4) (i) The Fund is a special, nonlapsing fund that is not subject to § 11
774+7–302 of the State Finance and Procurement Article. 12
775+
776+ (ii) The State Treasurer shall hold the Fund separately, and the 13
777+Comptroller shall account for the Fund. 14
778+
779+ (5) The Fund consists of: 15
780+
781+ (i) [Revenue distributed to the Fund that is at least 30% of the 16
782+revenues from adult–use cannabis] SALES AND USE TAX RE VENUE DISTRIBUTED TO 17
783+THE FUND UNDER § 2–1302.2 OF THE TAX – GENERAL ARTICLE; 18
784+
785+ (ii) [Licensing] CONVERSION fees paid by [dual–licensed cannabis 19
786+establishments] BUSINESSES UNDER § 36–403 OF THIS ARTICLE ; and 20
787+
788+ (iii) [Any] ANY other money from any other source accepted for the 21
789+benefit of the Fund, in accordance with any conditions adopted by the Comptroller for the 22
790+acceptance of donations or gifts to the Fund. 23
791+
792+ (6) (i) The Fund may be used only for: 24
793+
794+ 1. [Funding] FUNDING community–based initiatives 25
795+intended to benefit low–income communities; 26
796+
797+ 2. [Funding] FUNDING community–based initiatives that 27
798+serve [communities disproportionately harmed by the cannabis prohibition and 28
799+enforcement] DISPROPORTIONATELY I MPACTED AREAS , AS DEFINED IN § 36–101 OF 29
800+THIS ARTICLE; and 30
801+
802+ 3. [Any] ANY related administrative expenses. 31 18 HOUSE BILL 556
803+
804+
805+
806+ (ii) Money may not be expended from the Fund for law enforcement 1
807+agencies or activities. 2
808+
809+ (iii) Money expended from the Fund is supplemental to and may not 3
810+supplant funding that otherwise would be appropriated for preexisting local government 4
811+programs. 5
812+
813+ (7) The State Treasurer shall invest the money of the Fund in the same 6
814+manner as other State money may be invested. 7
815+
816+ (8) No part of the Fund may revert or be credited to: 8
817+
818+ (i) [The] THE General Fund of the State; or 9
819+
820+ (ii) [Any] ANY other special fund of the State. 10
821+
822+ (9) The Comptroller shall pay out money from the Fund. 11
823+
824+ (10) The Fund is subject to audit by the Office of Legislative Audits as 12
825+provided for in § 2–1220 of the State Government Article. 13
826+
827+ (b) (1) The BASED ON THE PERCENTA GE ALLOCABLE TO EACH COUNTY 14
828+DETERMINED BY THE OFFICE OF SOCIAL EQUITY AND REPORTED BY THE OFFICE TO 15
829+THE COMPTROLLER ON OR BEF ORE JULY 31 EACH YEAR, THE Comptroller shall 16
830+distribute funds from the Fund to each county in an amount that, for the period from July 17
831+1, 2002, to [June 30, 2022] JANUARY 1, 2023, both inclusive, is proportionate to the total 18
832+number of [cannabis arrests POSSESSION CHARGES in the county compared to the total 19
833+number of cannabis arrests POSSESSION CHARGES in the State] INDIVIDUALS 20
834+RESIDING IN THE COUNTY WHO WE RE CHARGED WITH A CA NNABIS CRIME 21
835+COMPARED TO THE TOTAL NUMBER OF INDI VIDUALS CHARGED WITH CANNABIS 22
836+CRIMES IN THE STATE. 23
837+
838+ (2) (i) Subject to the limitations under subsection (a)(6) of this section, 24
839+each county shall adopt a law establishing the purpose for which money received from the 25
840+Fund may be used. 26
841+
842+ (ii) On or before December 1 every 2 years, beginning in 2024, each 27
843+local jurisdiction POLITICAL SUBDIVISIO N THAT RECEIVES FUND S FROM THE FUND 28
844+UNDER PARAGRAPH (1) OF THIS SUBSECTION shall submit a report to the Governor and, 29
845+in accordance with § 2–1257 of the State Government Article, the Senate Budget and 30
846+Taxation Committee[, the Senate Finance Committee, the House Judiciary Committee, and 31
847+the House Health and Government Operations Committee ] AND THE HOUSE 32
848+APPROPRIATIONS COMMITTEE on how funds received from the Fund were spent during 33
849+the immediately preceding 2 fiscal years. 34 HOUSE BILL 556 19
850+
851+
852+
853+1–323. 1
854+
855+ (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2
856+INDICATED. 3
857+
858+ (2) “ADMINISTRATION ” HAS THE MEANING STAT ED IN § 36–101 OF 4
859+THIS ARTICLE. 5
860+
861+ (2) (3) “CANNABIS LICENSEE ” HAS THE MEANING STAT ED IN § 6
862+36–101 OF THIS ARTICLE. 7
863+
864+ (3) “DIVISION” HAS THE MEANING STAT ED IN § 36–101 OF THIS 8
865+ARTICLE. 9
866+
867+ (4) “GRANT PROGRAM” MEANS THE SOCIAL EQUITY PARTNERSHIP 10
868+GRANT PROGRAM. 11
869+
870+ (5) “OFFICE” MEANS THE OFFICE OF SOCIAL EQUITY. 12
871+
872+ (5) (6) (I) “QUALIFYING PARTNERSHI P” MEANS A MEANINGFUL 13
873+PARTNERSHIP BETWEEN AN OPERATIONAL CANNA BIS LICENSEE AND A S OCIAL 14
874+EQUITY LICENSEE THAT : 15
875+
876+ 1. SUPPORTS OR ADVISES THE SOCIAL EQUITY 16
877+LICENSEE; AND 17
878+
879+ 2. IS AUTHORIZED BY THE COMMISSION 18
880+ADMINISTRATION . 19
881+
882+ (II) “QUALIFYING PARTNERSHI P” INCLUDES A PARTNERSH IP 20
883+THROUGH WHICH THE OP ERATIONAL CANNABIS L ICENSEE PROVIDES ANY OF THE 21
884+FOLLOWING TO A SOCIA L EQUITY LICENSEE : 22
885+
886+ 1. TRAINING; 23
887+
888+ 2. MENTORSHIP ; OR 24
889+
890+ 3. SHARED COMMERC IAL SPACE OR EQUIPME NT. 25
891+
892+ (6) (7) “SOCIAL EQUITY LICENSE E” MEANS A SOCIAL EQUIT Y 26
893+APPLICANT, AS DEFINED HAS THE MEANING STAT ED IN § 36–101 OF THIS ARTICLE, 27
894+WHO HAS BEEN AWARDED A CANNABIS LICENSE OR CANNABIS REGISTRATIO N. 28
895+ 20 HOUSE BILL 556
896+
897+
898+ (B) (1) THERE IS A SOCIAL EQUITY PARTNERSHIP GRANT PROGRAM IN 1
899+THE COMMISSION OFFICE. 2
900+
901+ (2) THE PURPOSE OF THE GRANT PROGRAM IS TO PROMOTE 3
902+QUALIFYING PARTNERSH IPS BETWEEN OPERATIO NAL CANNABIS LICENSE ES AND 4
903+SOCIAL EQUITY LICENS EES. 5
904+
905+ (C) (1) THE COMMISSION OFFICE SHALL IMPLEMENT AND ADMINISTER 6
906+THE GRANT PROGRAM, INCLUDING BY CLEARLY DEFINING THE PARAMET ERS OF A 7
907+QUALIFYING PARTNERSH IP. 8
908+
909+ (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , THE 9
910+COMMISSION OFFICE HAS DISCRETION TO AP PROVE, DENY, OR REVOKE 10
911+QUALIFYING PART NERSHIPS. 11
912+
913+ (3) (I) THE COMMISSION OFFICE MAY APPROVE QUALIFYI NG 12
914+PARTNERSHIPS WHERE A COST OR OTHER FEE IS IMPOSED BY AN OPERAT IONAL 13
915+CANNABIS LICENSEE ON A SOCIAL EQUITY LICE NSEE IF THE COST OR OTHER FEE IS 14
916+SUBSTANTIALLY REDUCE D FROM THE MARKET VA LUE. 15
917+
918+ (II) COSTS OR OTHER FEES U NDER SUBPARAGRAPH (I) OF THIS 16
919+PARAGRAPH MAY INCLUD E CHARGES FOR THE RE NT OF FACILITIES OR EQUIPMENT. 17
920+
921+ (D) (1) THE COMMISSION OFFICE SHALL AWARD GRANTS T O 18
922+OPERATIONAL CANNABIS LICENSEES THAT HAVE QUALIFYING PARTNERSH IPS WITH 19
923+A SOCIAL EQUITY LICENS EE. 20
924+
925+ (2) GRANT AMOUNTS SHALL B E BASED ON THE NATUR E OF THE 21
926+QUALIFYING PARTNERSH IP BETWEEN THE SOCIA L EQUITY LICENSEE AN D THE 22
927+OPERATIONAL CANNABIS LICENSEE. 23
928+
929+ (3) IF AN OPERATIONAL CAN NABIS LICENSEE HAS A LICENSE THAT 24
930+WAS CONVERTED BY THE DIVISION ADMINISTRATION UNDER § 36–401(B)(1)(II) OF 25
931+THIS ARTICLE, THE TOTAL AWARD AMOUNT OF ANY GRANTS FROM THE COMMISSION 26
932+ISSUED BY THE OFFICE UNDER THIS SEC TION TO THE LICENSEE MAY NOT EXCEED: 27
933+
934+ (I) THE COST OF THE LICE NSE CONVERSION FEE T HAT WAS 28
935+PAID BY THE LICENSEE ; OR 29
936+
937+ (II) $250,000 PER YEAR PER QUALIFY ING PARTNERSHIP . 30
938+
939+ (E) THE COMMISSION OFFICE MAY REQUIRE A GRANT RECIPIENT THAT 31
940+FAILS TO FULFILL THE REQUIREMENTS OF THE GRANT TO RETURN ALL OR PART OF 32
941+THE GRANT TO THE GRANT PROGRAM. 33 HOUSE BILL 556 21
942+
943+
944+
945+ (F) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER , THE 1
946+GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDGET BI LL AN APPROPRIATION OF 2
947+$5,000,000 FOR THE GRANT PROGRAM. 3
948+
949+ (G) THE COMMISSION OFFICE SHALL ADOPT REGULATI ONS TO: 4
950+
951+ (1) IMPLEMENT THE PROVIS IONS OF THIS SECTION; 5
952+
953+ (2) ADMINISTER THE GRANT PROGRAM; 6
954+
955+ (3) ESTABLISH ELIGIBILIT Y AND GRANT APPLICAT ION 7
956+REQUIREMENTS ; 8
957+
958+ (4) ESTABLISH A PROCESS FOR REVIEWING GRANT APPLICATIONS 9
959+AND AWARDING GRANTS TO SOCIAL EQUITY OPERATIONAL CANNABIS LICENSEES; 10
960+AND 11
961+
962+ (5) SPECIFY CRITERIA AND PROCEDURES TO MONITO R ELIGIBILITY 12
963+FOR THE GRANTS AUTHO RIZED UNDER THIS SEC TION. 13
964+
965+TITLE 34. RESERVED. 14
966+
967+TITLE 35. RESERVED. 15
968+
969+DIVISION III. CANNABIS. 16
970+
971+TITLE 36. MEDICAL AND ADULT–USE CANNABIS. 17
972+
973+SUBTITLE 1. DEFINITIONS. 18
974+
975+36–101. 19
976+
977+ (A) IN THIS TITLE THE FOLLOW ING WORDS HAVE THE M EANINGS 20
978+INDICATED. 21
979+
980+ (B) “ACADEMIC RESEARCH REP RESENTATIVE ” MEANS AN INDIVIDUAL WHO 22
981+IS: 23
982+
983+ (1) AN EMPLOYEE OR AGENT OF AN INSTITUTION OF HIGHER 24
984+EDUCATION, A RELATED MEDICAL FA CILITY, OR AN AFFILIATED BIO MEDICAL 25
985+RESEARCH FIRM THAT F ILED A REGISTRATION WITH THE DIVISION 26
986+ADMINISTRATION UNDER § 36–701 OF THIS TITLE; AND 27
987+ 22 HOUSE BILL 556
988+
989+
990+ (2) AUTHORIZED TO PURCHA SE MED ICAL CANNABIS FOR TH E 1
991+INSTITUTION OF HIGHE R EDUCATION, RELATED MEDICAL FACI LITY, OR AFFILIATED 2
992+BIOMEDICAL RESEARCH FIRM. 3
993+
994+ (C) “ADMINISTRATION ” MEANS THE MARYLAND CANNABIS 4
995+ADMINISTRATION ESTABL ISHED UNDER THIS TIT LE. 5
996+
997+ (C) (1) “CANNABIS” MEANS THE PLANT CANNABIS SATIVA L. AND ANY 6
998+PART OF THE PLANT , INCLUDING ALL DERIVA TIVES, EXTRACTS, CANNABINOIDS , 7
999+ISOMERS, ACIDS, SALTS, AND SALTS OF ISOMERS , WHETHER GROWING OR N OT, WITH 8
1000+A DELTA–9–TETRAHYDROCANNABINOL CONCENTRATION GREATE R THAN 0.3% ON A 9
1001+DRY WEIGHT BASIS . 10
1002+
1003+ (2) “CANNABIS” INCLUDES CANNABIS PR ODUCTS. 11
1004+
1005+ (3) “CANNABIS” DOES NOT INCLUDE HEM P OR HEMP PRODUCTS , AS 12
1006+DEFINED IN § 14–101 OF THE AGRICULTURE ARTICLE. 13
1007+
1008+ (D) (C) (D) “CANNABIS AGENT ” MEANS AN EMPLOYEE , A VOLUNTEER , OR ANY 14
1009+OTHER AUTHORIZED PER SON WHO ACTS FOR OR AT THE D IRECTION OF A CANNAB IS 15
1010+LICENSEE OR CANNABIS REGISTRANT. 16
1011+
1012+ (E) (D) (E) “CANNABIS BUSINESS ” MEANS A BUSINESS LIC ENSED OR 17
1013+REGISTERED BY THE DIVISION ADMINISTRATION TO OPERATE IN THE CA NNABIS 18
1014+INDUSTRY. 19
1015+
1016+ (F) (E) (F) “CANNABIS CONCENTRATE ” MEANS A PRODUCT DERIV ED FROM 20
1017+CANNABIS THAT IS KIE F, HASHISH, BUBBLE HASH , OIL, WAX, OR ANY OTHER 21
1018+PRODUCT PRODUCED BY EXTRACTING CANNABINO IDS FROM THE PLANT T HROUGH 22
1019+THE USE OF SOLVENTS , CARBON DIOXIDE , OR HEAT, SCREENS, PRESSES, OR STEAM 23
1020+DISTILLATION. 24
1021+
1022+ (G) (F) (G) “CANNABIS–INFUSED PRODUCT ” MEANS OIL, WAX, OINTMENT, 25
1023+SALVE, TINCTURE, CAPSULE, SUPPOSITORY , DERMAL PATCH , CARTRIDGE, OR ANY 26
1024+OTHER PRODUCT CONTAI NING CANNABIS CONCEN TRATE OR USABLE CANN ABIS 27
1025+THAT HAS BEEN PROCES SED SO THAT THE DRIE D LEAVES AND FLOWER S ARE 28
1026+INTEGRATED INTO OTHE R MATERIAL. 29
1027+
1028+ (H) (G) (H) “CANNABIS LICENSEE ” MEANS A BUSINESS LIC ENSED BY THE 30
1029+DIVISION ADMINISTRATION TO OPERATE IN THE CA NNABIS INDUSTRY . 31
1030+
1031+ (I) (H) (I) “CANNABIS PRODUCTS ” MEANS PRODUCTS THAT ARE COMPOSED 32
1032+OF CANNABIS , CANNABIS CONCENTRATE , CANNABIS EXTRACT , OR OTHER 33 HOUSE BILL 556 23
1033+
1034+
1035+INGREDIENTS AND ARE INTENDED FOR USE OR CONSUMPTION , INCLUDING EDIBLE 1
1036+PRODUCTS, OILS, AND TINCTURES . 2
1037+
1038+ (J) (I) (J) “CANNABIS REGISTRANT ” MEANS AN INDEPENDENT TES TING 3
1039+LABORATORY , A TRANSPORTER , A DELIVERY SERVICE , A SECURITY GUARD 4
1040+COMPANY, A WASTE DISPOSAL COM PANY, AND ANY OTHER TYPE O F CANNABIS 5
1041+BUSINESS REGISTERED UNDER THIS TITLE AND AUTHORIZED BY THE DIVISION 6
1042+ADMINISTRATION . 7
1043+
1044+(K) (J) (K) (1) “CANOPY” MEANS THE TOTAL SQUA RE FOOTAGE OF SPACE 8
1045+USED BY A CANNABIS L ICENSEE FOR THE PROD UCTION OF FLOWERING CANNABIS 9
1046+PLANTS. 10
1047+
1048+ (2) “CANOPY” INCLUDES EACH LAYER OF FLOWERING CANNABI S 11
1049+PLANTS GROWN ON ANY RACK OR SHELVING . 12
1050+
1051+ (3) “CANOPY” DOES NOT INCLUDE SQUARE FOOTAGE USED FOR: 13
1052+
1053+ (I) MOTHER STOCK ; 14
1054+
1055+ (II) PROPAGATION ; 15
1056+
1057+ (III) IMMATURE OR NONFLOWE RING PLANTS; 16
1058+
1059+ (IV) PROCESSING; 17
1060+
1061+ (V) DRYING; 18
1062+
1063+ (VI) CURING; 19
1064+
1065+ (VII) TRIMMING; 20
1066+
1067+ (VIII) STORAGE; 21
1068+
1069+ (IX) OFFICES; 22
1070+
1071+ (X) HALLWAYS; 23
1072+
1073+ (XI) PATHWAYS; 24
1074+
1075+ (XII) WORK AREAS ; OR 25
1076+
1077+ (XIII) OTHER ADMINISTRATIVE AND NONPRODUCTION US ES. 26
1078+ 24 HOUSE BILL 556
1079+
1080+
1081+ (L) (K) (L) (1) “CAREGIVER” MEANS: 1
1082+
1083+ (I) AN INDIVIDUAL WHO HA S AGREED TO ASSIST W ITH A 2
1084+QUALIFYING PATIENT ’S MEDICAL USE OF CAN NABIS; AND 3
1085+
1086+ (II) FOR A QUALIFYING PATIENT U NDER THE AGE OF 18 YEARS: 4
1087+
1088+ 1. A PARENT OR LEGAL GU ARDIAN; AND 5
1089+
1090+ 2. NOT MORE THAN TWO AD DITIONAL ADULTS 6
1091+DESIGNATED BY THE PA RENT OR LEGAL GUARDI AN. 7
1092+
1093+ (2) “CAREGIVER” DOES NOT INCLUDE ANY DESIGNATED SCHOOL 8
1094+PERSONNEL AUTHORIZED TO ADMINISTER MEDICAL C ANNABIS TO A STUDENT IN 9
1095+ACCORDANCE WITH THE GUIDELINES ESTABLISH ED UNDER § 7–446 OF THE 10
1096+EDUCATION ARTICLE. 11
1097+
1098+ (M) (L) (M) “CERTIFYING PROVIDER ” MEANS AN INDIVIDUAL WHO: 12
1099+
1100+ (1) (I) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 13
1101+PRACTICE MEDICI NE THAT WAS ISSUED B Y THE STATE BOARD OF PHYSICIANS 14
1102+UNDER TITLE 14 OF THE HEALTH OCCUPATIONS ARTICLE; AND 15
1103+
1104+ 2. IS IN GOOD STANDING WITH THE STATE BOARD OF 16
1105+PHYSICIANS; 17
1106+
1107+ (II) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 18
1108+PRACTICE DENTISTRY T HAT WAS ISSUED BY THE STATE BOARD OF DENTAL 19
1109+EXAMINERS UNDER TITLE 4 OF THE HEALTH OCCUPATIONS ARTICLE; AND 20
1110+
1111+ 2. IS IN GOOD STANDING WITH THE STATE BOARD OF 21
1112+DENTAL EXAMINERS; 22
1113+
1114+ (III) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 23
1115+PRACTICE PODIATRY TH AT WAS ISSUED BY THE STATE BOARD OF PODIATRIC 24
1116+MEDICAL EXAMINERS UNDER TITLE 16 OF THE HEALTH OCCUPATIONS ARTICLE; 25
1117+AND 26
1118+
1119+ 2. IS IN GOOD STANDING WITH THE STATE BOARD OF 27
1120+PODIATRIC MEDICAL EXAMINERS; 28
1121+
1122+ (IV) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 29
1123+PRACTICE REGISTERED NURSING OR AND HAS AN ACTIVE , UNRESTRICTED 30
1124+CERTIFICATION TO PRA CTICE AS A NURSE PRA CTITIONER OR A NURSE MIDWIFE 31 HOUSE BILL 556 25
1125+
1126+
1127+THAT WAS ISSUED BY T HE STATE BOARD OF NURSING UNDER TITLE 8 OF THE 1
1128+HEALTH OCCUPATIONS ARTICLE; AND 2
1129+
1130+ 2. IS IN GOOD STANDING WITH THE STATE BOARD OF 3
1131+NURSING; OR 4
1132+
1133+ (V) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO 5
1134+PRACTICE AS A PHYSIC IAN ASSISTANT ISSUED BY THE STATE BOARD OF PHYSICIANS 6
1135+UNDER TITLE 15 OF THE HEALTH OCCUPATIONS ARTICLE; 7
1136+
1137+ 2. HAS AN ACTIVE DELEGA TION AGREEMENT WITH A 8
1138+PRIMARY SUPERVISING PHYSICIAN WHO IS A CE RTIFYING PROVIDER ; AND 9
1139+
1140+ 3. IS IN GOOD STANDING WITH THE STATE BOARD OF 10
1141+PHYSICIANS; 11
1142+
1143+ (2) HAS A STATE CONTROLLED DANG EROUS SUBSTANCES 12
1144+REGISTRATION ; AND 13
1145+
1146+ (3) IS REGISTERED WITH T HE DIVISION ADMINISTRATION TO MAKE 14
1147+CANNABIS AVAILABLE TO PATIENTS FOR MEDI CAL USE IN ACCORDANC E WITH 15
1148+REGULATIONS ADOPTED BY THE DIVISION ADMINISTRATION . 16
1149+
1150+ (N) “COMMISSION” MEANS THE ALCOHOL, TOBACCO, AND CANNABIS 17
1151+COMMISSION ESTABLISHE D UNDER § 1–302 OF THIS ARTICLE. 18
1152+
1153+ (O) (M) (N) “CONSUMER” MEANS AN INDIVIDUAL AT LEAST 21 YEARS OLD 19
1154+WHO PURCHASES CANNABIS O R CANNABIS PRODUCTS FOR PERSONAL USE BY 20
1155+INDIVIDUALS AT LEAST 21 YEARS OLD. 21
1156+
1157+ (P) (N) (O) (1) “CONTROL” MEANS: 22
1158+
1159+ (1) (I) THE DECISION –MAKING AUTHORITY OVE R THE 23
1160+MANAGEMENT , OPERATIONS, OR POLICIES TH AT GUIDE A BUSINESS ; OR 24
1161+
1162+ (2) (II) AUTHORITY OVER THE O PERATION OF THE TECH NICAL 25
1163+ASPECTS OF A BUSINES S. 26
1164+
1165+ (2) “CONTROL” INCLUDES: 27
1166+
1167+ (I) HOLDING A VOTING INTEREST OF 5% OR MORE IN A 28
1168+CANNABIS LICENSEE OR A RIGHT TO VETO SIGNIF ICANT EVENTS; 29
1169+ 26 HOUSE BILL 556
1170+
1171+
1172+ (II) THE RIGHT OR AUTHORITY T O MAKE OR VETO DECIS IONS 1
1173+REGARDING OPERATIONS AND STRATEGIC PLANNI NG, CAPITAL ALLOCATIONS , 2
1174+ACQUISITIONS, AND DIVESTMENTS ; 3
1175+
1176+ (III) THE RIGHT OR AUTHORI TY TO APPOINT OR REM OVE 4
1177+DIRECTORS, CORPORATE –LEVEL OFFICERS , OR THEIR EQUIVALENT ; 5
1178+
1179+ (IV) THE RIGHT OR AUTHORI TY TO MAKE MAJOR MAR KETING, 6
1180+PRODUCTION , AND FINANCIAL DECISI ONS; AND 7
1181+
1182+ (V) THE RIGHT OR AUTHORI TY TO EXECUTE EXCLUS IVE 8
1183+CONTRACTS OR SIGNIFI CANT CONTRACTS IN TH E AGGREGATE OF $10,000 OR 9
1184+GREATER ON BEHALF OF THE LICENSEE; AND 10
1185+
1186+ (VI) THE RIGHT OR AUTHORI TY TO EARN 5% OR MORE OF THE 11
1187+PROFITS OR COLLECT 5% OR MORE OF THE DIVID ENDS. 12
1188+
1189+ (Q) (O) (P) “DELIVERY SERVICE ” MEANS A CANNABIS LIC ENSEE AUTHORIZED 13
1190+TO DELIVER CANNABIS IN ACCORDANCE WITH A MICRO LICENSE TO OPE RATE A 14
1191+DISPENSARY. 15
1192+
1193+ (R) (P) (Q) “DISPENSARY” MEANS AN ENTITY LICE NSED UNDER THIS TITL E 16
1194+THAT ACQUIRES , POSSESSES, REPACKAGES , TRANSFERS, REPACKAGES , 17
1195+TRANSPORTS , SELLS, DISTRIBUTES, OR DISPENSES CANNABI S OR CANNABIS 18
1196+PRODUCTS, INCLUDING TINCTURES , AEROSOLS, OILS, AND OINTMENTS , RELATED 19
1197+SUPPLIES, AND EDUCATIONAL MATE RIALS FOR USE BY QUA LIFYING PATIENTS , 20
1198+CAREGIVERS, OR CONSUMERS THROUGH A STOREFRONT OR THRO UGH A DELIVERY 21
1199+SERVICE, BASED ON LICENSE TYP E. 22
1200+
1201+ (S) (Q) (R) “DISPROPORTIONATELY IM PACTED AREA” MEANS A GEOGRAPHIC 23
1202+AREA IDENTIFIED BY T HE OFFICE OF SOCIAL EQUITY THAT HAS BEEN 24
1203+DISPROPORTIONATELY I MPACTED BY THE PROHI BITION OF CANNABIS HAD ABOVE 25
1204+150% OF THE STATE’S 10–YEAR AVERAGE FOR CAN NABIS POSSESSION CHA RGES, AS 26
1205+DETERMINED BY INFORM ATION FROM THE ADMINISTRATIVE OFFICE OF THE 27
1206+COURTS. 28
1207+
1208+ (T) (R) “DIVISION” MEANS THE CANNABIS REGULATION AND 29
1209+ENFORCEMENT DIVISION ESTABLISHED UNDER THIS TITLE . 30
1210+
1211+ (U) (S) (1) “EDIBLE CANNABIS PRODU CT” MEANS A CANNABIS 31
1212+PRODUCT INTENDED FOR HUMAN CONSUMPTION BY ORAL INGESTION , IN WHOLE OR 32
1213+IN PART. 33
1214+
1215+ (2) “EDIBLE CANNABIS PRODU CT” INCLUDES A CANNABIS PRODUCT 34 HOUSE BILL 556 27
1216+
1217+
1218+THAT DISSOLVES OR DI SINTEGRATES IN THE M OUTH. 1
1219+
1220+ (3) “EDIBLE CANNABIS PRODU CT” DOES NOT INCLUDE ANY : 2
1221+
1222+ (I) CANNABIS CONCENTRATE ; 3
1223+
1224+ (II) CANNABIS–INFUSED PRODUCT , INCLUDING AN OIL , A WAX, 4
1225+AN OINTMENT , A SALVE, A TINCTURE, A CAPSULE, A SUPPOSITORY , A DERMAL 5
1226+PATCH, OR A CARTRIDGE ; OR 6
1227+
1228+ (III) OTHER DOSAGE FORM TH AT IS RECOGNIZED BY THE 7
1229+UNITED STATES PHARMACOPEIA , THE NATIONAL FORMULARY, OR THE U.S. FOOD 8
1230+AND DRUG ADMINISTRATION AND IS APPROVED BY THE DIVISION 9
1231+ADMINISTRATION . 10
1232+
1233+ (V) (T) “GROWER” MEANS AN ENTITY LICE NSED UNDER THIS TITL E THAT: 11
1234+
1235+ (1) CULTIVATES, OR PACKAGES, OR DISTRIBUTES CANNABIS; AND 12
1236+
1237+ (2) IS AUTHORIZED BY THE DIVISION ADMINISTRATION TO PROVIDE 13
1238+CANNABIS TO OTHER CA NNABIS LICENSEES AND REGISTERED INDEPENDE NT 14
1239+TESTING LABORATORIES . 15
1240+
1241+ (W) (U) “INCUBATOR SPACE ” MEANS A FACILITY OPE RATED IN 16
1242+ACCORDANCE WITH § 36–401 § 36–401(C)(3) OF THIS TITLE. 17
1243+
1244+ (X) (V) “INDEPENDENT TESTING L ABORATORY ” MEANS A FACILITY , AN 18
1245+ENTITY, OR A SITE THAT IS RE GISTERED WITH THE DIVISION ADMINISTRATION TO 19
1246+PERFORM TESTS RELATE D TO THE INSPECTION AND TESTING OF CANNA BIS AND 20
1247+PRODUCTS CONTAINING CANNABIS. 21
1248+
1249+ (W) “INSTITUTION OF HIGHER EDUCATION” HAS THE MEANING STAT ED IN § 22
1250+10–101 OF THE EDUCATION ARTICLE. 23
1251+
1252+ (Y) (X) “MICRO LICENSE” MEANS A LICENSE ISSU ED IN ACCORDANCE 24
1253+WITH § 36–401 § 36–401(C)(2) OF THIS TITLE. 25
1254+
1255+ (Z) (Y) “ON–SITE CONSUMPTION EST ABLISHMENT ” MEANS AN ENTITY 26
1256+LICENSED UNDER § 36–401(C)(4) OF THIS TITLE TO DISTRI BUTE CANNABIS OR 27
1257+CANNABIS PRODUCTS FO R ON–SITE CONSUMPTION OTHER THAN CONSUMPTI ON BY 28
1258+SMOKING INDOORS . 29
1259+
1260+ (AA) (Z) “OWNER” MEANS A PERSON WITH AN OWNERSHIP INTERES T IN A 30
1261+CANNABIS LICENSEE . 31 28 HOUSE BILL 556
1262+
1263+
1264+
1265+ (BB) (AA) “OWNERSHIP INTEREST ” MEANS A DIRECT OR IN DIRECT EQUITY 1
1266+INTEREST IN A CANNAB IS LICENSEE, INCLUDING IN ITS SHA RES OR STOCK. 2
1267+
1268+ (BB) “PASSIVE INVESTOR ” MEANS A PERSON AN INDIVIDUAL OR AN ENTITY 3
1269+THAT: 4
1270+
1271+ (1) HOLDS AN AGGREGATE O WNERSHIP INTEREST OF LESS THAN 5% 5
1272+IN A CANNABIS LICENSEE; AND 6
1273+
1274+ (2) DOES NOT HAVE CONTRO L OF THE CANNABIS LI CENSEE. 7
1275+
1276+ (CC) “PRINCIPAL OFFICER ” MEANS A BOARD MEMBER , A PRESIDENT, A VICE 8
1277+PRESIDENT, A SECRETARY, A TREASURER, A PARTNER, AN OFFICER, OR A MANAGING 9
1278+MEMBER, OR ANY OTHER INDIVID UAL WITH A PROF IT SHARING, FINANCIAL 10
1279+INTEREST, OR REVENUE SHARING A RRANGEMENT , INCLUDING AN INDIVID UAL WITH 11
1280+THE AUTHORITY TO CON TROL A CANNABIS LICE NSEE. 12
1281+
1282+ (DD) “PROCESSOR” MEANS AN ENTITY LICE NSED UNDER THIS TITL E THAT: 13
1283+
1284+ (1) TRANSFORMS CANNABIS INTO ANOTHER PRODUCT OR AN 14
1285+EXTRACT AND PACKAGES AND LABELS THE CANNA BIS PRODUCT; AND 15
1286+
1287+ (2) IS AUTHORIZED BY THE DIVISION ADMINISTRATION TO PROVIDE 16
1288+CANNABIS TO LICENSED DISPENSARIES AND REG ISTERED INDEPENDENT TESTING 17
1289+LABORATORIES . 18
1290+
1291+ (EE) “QUALIFYING PATIENT ” MEANS AN INDIVIDUAL WHO: 19
1292+
1293+ (1) HAS BEEN PROVIDED WI TH A WRITTEN CERTIFI CATION BY A 20
1294+CERTIFYING PROVIDER IN ACCORDANCE WITH A BONA FIDE PROVIDER –PATIENT 21
1295+RELATIONSHIP ; AND 22
1296+
1297+ (2) IF UNDER THE AGE OF 18 YEARS, HAS A CAREGIVER . 23
1298+
1299+ (FF) “SOCIAL EQUITY APPLICA NT” MEANS AN APPLICANT FOR A CANNABIS 24
1300+LICENSE OR CANNABIS REGISTRATION THAT : 25
1301+
1302+ (1) HAS AT LEAST 65% OWNERSHIP AND CONTRO L HELD BY ONE OR 26
1303+MORE INDIVIDUALS WHO : 27
1304+
1305+ (I) HAVE LIVED IN A DISP ROPORTIONATELY IMPAC TED AREA 28
1306+FOR AT LEAST 5 OF THE 10 YEARS IMMEDIATELY PR ECEDING THE SUBMISSI ON OF 29
1307+THE APPLICATION ; OR 30 HOUSE BILL 556 29
1308+
1309+
1310+
1311+ (II) ATTENDED A PUBLIC SC HOOL IN A DISPROPORT IONATELY 1
1312+IMPACTED AREA FOR AT LEAST 5 YEARS; OR 2
1313+
1314+ (III) FOR AT LEAST 2 YEARS, ATTENDED A 4–YEAR INSTITUTION 3
1315+OF HIGHER EDUCATION IN THE STATE WHERE AT LEAST 40% OF THE INDIVIDUALS 4
1316+WHO ATTEND THE INSTI TUTION OF HIGHER EDU CATION ARE ELIGIBLE FOR A PELL 5
1317+GRANT; OR 6
1318+
1319+ (2) MEETS ANY OTHER CRIT ERIA ESTABLISHED BY THE COMMISSION 7
1320+BASED ON THE RESULTS OF A DISPARITY STUDY ADMINISTRATION . 8
1321+
1322+ (GG) (1) “SOCIAL EQUITY LICENSE E” MEANS A SOCIAL EQUIT Y APPLICANT 9
1323+WHO HAS BEEN AWARDED A CANNABIS LICENSE O R CANNABIS REGISTRAT ION. 10
1324+
1325+ (2) “SOCIAL EQUITY LICENSE E” INCLUDES A GROWER , PROCESSOR, 11
1326+OR DISPENSARY THAT : 12
1327+
1328+ (I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE 13
1329+OCTOBER 1, 2022; AND 14
1330+
1331+ (II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022. 15
1332+
1333+ (GG) (HH) “STANDARD LICENSE ” MEANS A LICENSE ISSU ED IN ACCORDANCE 16
1334+WITH § 36–401 § 36–401(C)(1) OF THIS TITLE. 17
1335+
1336+ (HH) (II) “TRANSPORTER ” MEANS AN ENTITY REGI STERED UNDER THIS 18
1337+TITLE TO TRANSPORT C ANNABIS BETWEEN CANN ABIS LICENSEES AND R EGISTERED 19
1338+INDEPENDENT TESTING LABORATORIES . 20
1339+
1340+ (II) (JJ) (1) “USABLE CANNABIS ” MEANS THE DRIED LEAVES AND 21
1341+FLOWERS OF THE CANNA BIS PLANT. 22
1342+
1343+ (2) “USABLE CANNABIS ” DOES NOT INCLUDE SEE DLINGS, SEEDS, 23
1344+STEMS, STALKS, OR ROOTS OF THE PLAN T OR THE WEIGHT OF A NY NONCANNABIS 24
1345+INGREDIENTS COMBINED WITH CANNABIS , SUCH AS INGREDIENTS ADDED TO 25
1346+PREPARE A TOP ICAL ADMINISTRATION . 26
1347+
1348+ (JJ) (KK) “WRITTEN CERTIFICATION ” MEANS A CERTIFICATIO N THAT: 27
1349+
1350+ (1) IS ISSUED BY A CERTI FYING PROVIDER TO A QUALIFYING PATIENT 28
1351+WITH WHOM THE PROVID ER HAS A BONA FIDE P ROVIDER–PATIENT RELATIONSHIP ; 29
1352+ 30 HOUSE BILL 556
1353+
1354+
1355+ (2) INCLUDES A WRITTEN S TATEMENT CERTIFYING THAT , IN THE 1
1356+CERTIFYING PROVIDER ’S PROFESSIONAL OPINI ON, AFTER HAVING COMPLET ED AN 2
1357+ASSESSMENT OF THE PA TIENT’S MEDICAL HISTORY AN D CURRENT MEDICAL 3
1358+CONDITION, THE PATIENT HAS A CO NDITION: 4
1359+
1360+ (I) THAT MEETS THE INCLU SION CRITERIA AND DO ES NOT 5
1361+MEET THE EXCLUSION CRI TERIA OF THE CERTIFY ING PROVIDER ’S APPLICATION; 6
1362+AND 7
1363+
1364+ (II) FOR WHICH THE POTENT IAL BENEFITS OF THE MEDICAL 8
1365+USE OF CANNABIS WOUL D LIKELY OUTWEIGH TH E HEALTH RISKS FOR T HE PATIENT; 9
1366+AND 10
1367+
1368+ (3) MAY INCLUDE A WRITTE N STATEMENT CERTIFYI NG THAT, IN THE 11
1369+CERTIFYING PROVIDER ’S PROFESSIONAL OPINI ON, A 30–DAY SUPPLY OF MEDICA L 12
1370+CANNABIS WOULD BE IN ADEQUATE TO MEET THE MEDICAL NEEDS OF THE 13
1371+QUALIFYING PATIENT . 14
1372+
1373+SUBTITLE 2. CANNABIS REGULATION AND ENFORCEMENT DIVISION MARYLAND 15
1374+CANNABIS ADMINISTRATION . 16
1375+
1376+36–201. 17
1377+
1378+ (A) (1) THERE IS A CANNABIS REGULATION AND ENFORCEMENT 18
1379+DIVISION ESTABLISHED WITHIN THE OFFICE OF THE EXECUTIVE DIRECTOR OF IN 19
1380+THE COMMISSION. 20
1381+
1382+ (2) THE DIVISION IS AN INDEPE NDENT UNIT THAT FUNC TIONS 21
1383+WITHIN, AND REPORTS DIRECTLY ONLY TO, THE COMMISSION. 22
1384+
1385+ (A) THERE IS A MARYLAND CANNABIS ADMINISTRATION ESTABL ISHED AS 23
1386+AN INDEPENDENT UNIT OF STATE GOVERNMENT . 24
1387+
1388+ (B) (1) THERE IS A DIRECTOR OF THE DIVISION ADMINISTRATION . 25
1389+
1390+ (2) THE GOVERNOR SHALL APPOIN T THE DIRECTOR OF THE 26
1391+DIVISION ADMINISTRATION WITH THE ADVICE AND CONSENT OF THE SENATE. 27
1392+
1393+ (3) THE DIRECTOR SERVES AT TH E PLEASURE OF THE GOVERNOR. 28
1394+
1395+ (C) THE DIRECTOR MUST HAVE TH E TRAINING AND EXPER IENCE, 29
1396+INCLUDING KNOWLEDGE OF THE STATE CANNABIS INDUST RY AND REGULATORY 30
1397+SYSTEM, THAT IS NEEDED TO DIRECT THE WORK OF THE DIVISION 31
1398+ADMINISTRATION . 32 HOUSE BILL 556 31
1399+
1400+
1401+
1402+ (D) THE DIVISION ADMINISTRATION MAY EMPLOY OFFICERS AND 1
1403+EMPLOYEES STAFF AND RETAIN CON TRACTORS AS PROVIDED IN THE STATE 2
1404+BUDGET. 3
1405+
1406+ (E) THE DIVISION ADMINISTRATION : 4
1407+
1408+ (1) SHALL BE RESPONSIBLE FOR CARRYING OUT THE REQUIREMENTS 5
1409+AND DUTIES ESTABLISH ED UNDER THIS DIVISION TITLE; AND 6
1410+
1411+ (2) MAY RECOMMEND CHANGE S TO IMPROVE THE ADM INISTRATION 7
1412+OF THIS DIVISION TITLE RELATING TO THE REGU LATION OF CANNABIS . 8
1413+
1414+ (F) THE DIVISION ADMINISTRATION SHALL ADMINISTER AND ENFORCE 9
1415+THIS TITLE. 10
1416+
1417+36–202. 11
1418+
1419+ (A) THE DIVISION ADMINISTRATION SHALL: 12
1420+
1421+ (1) DEVELOP AND MAINTAIN A SEED–TO–SALE TRACKING SYSTEM 13
1422+THAT TRACKS CANNABIS FROM EITHER THE SEED OR IMMATURE PLANT ST AGE 14
1423+UNTIL THE CANNABIS I S SOLD TO A PATIENT , CAREGIVER, OR CONSUMER ; 15
1424+
1425+ (2) CONDUCT FINANCIAL AN D CRIMINAL BACKGROUN D 16
1426+INVESTIGATIONS OF AN Y PERSON WHO SUBMITS AN APPLICATION FOR A CANNABIS 17
1427+LICENSE OR A CANNABI S LICENSEE, AS REQUIRED UNDER TH IS TITLE; 18
1428+
1429+ (3) DEVELOP A PROCESS FO R CONSUMERS AND QUALIFYING 19
1430+PATIENTS TO PURCHASE CLONES A ND SEEDS, SEEDLINGS, STALKS, ROOTS, AND 20
1431+STEMS OF THE CANNABI S PLANT FOR CULTIVAT ION IN ACCORDANCE WI TH § 5–601.2 21
1432+OF THE CRIMINAL LAW ARTICLE; 22
1433+
1434+ (3) (4) SOLICIT, EVALUATE, AND ISSUE OR DENY AP PLICATIONS 23
1435+FOR CANNABIS LICENSES AND CANNABIS REGISTR ATIONS, INCLUDING: 24
1436+
1437+ (I) LICENSES TO OPERATE A CANNABIS BUSINESS IN 25
1438+ACCORDANCE WITH THIS TITLE; AND 26
1439+
1440+ (II) REGISTRATION FOR IND EPENDENT TESTING 27
1441+LABORATORIES , TRANSPORTERS , SECURITY GUARD COMPA NIES, AND WASTE 28
1442+DISPOSAL COMPANIES ; 29
1443+
1444+ (4) (5) AWARD OR DENY : 30 32 HOUSE BILL 556
1445+
1446+
1447+
1448+ (I) A LICENSE TO OPERATE A CANNABIS BUSINESS IN 1
1449+ACCORDANCE WITH THIS TITLE; AND 2
1450+
1451+ (II) REGISTRATION TO INDE PENDENT TESTING LABO RATORIES, 3
1452+TRANSPORTERS , SECURITY GUARD COMPA NIES, WASTE DISPOSAL COMPA NIES, AND 4
1453+ANY OTHER TYPE OF CA NNABIS BUSINESS AUTH ORIZED BY THE DIVISION 5
1454+ADMINISTRATION ; 6
1455+
1456+ (5) (6) CONDUCT ANNOUNCED AN D UNANNOUNCED INSPEC TIONS 7
1457+OF ANY BUSINESS LICE NSED OR REGISTERED U NDER THIS TITLE TO E NSURE 8
1458+COMPLIANCE WITH THIS TITLE; 9
1459+
1460+ (6) (7) AFTER A DETERMINATIO N THAT A VIOLATION O F THIS TITLE 10
1461+OR A REGULATION ADOP TED UNDER THIS TITLE HAS OCCURRED , SUSPEND, FINE, 11
1462+RESTRICT, OR REVOKE CANNABIS LICENSES AND CANNABI S REGISTRATIONS , 12
1463+WHETHER ACTIVE , EXPIRED, OR SURRENDERED , OR IMPOSE ANY OTHER PENALTY 13
1464+AUTHORIZED BY THIS T ITLE OR ANY REGULATI ON ADOPTED UNDER THI S TITLE; 14
1465+
1466+ (7) (8) (I) GIVE NOTICE AND HOLD A HEARING IN ACCORDA NCE 15
1467+WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE, FOR ANY: 16
1468+
1469+ 1. CONTESTED CANNABIS L ICENSE OR REGISTRATION 17
1470+DENIAL; OR 18
1471+
1472+ 2. VIOLATION OF THIS TI TLE OR ANY REGULATIO N 19
1473+ADOPTED UNDER THIS T ITLE; 20
1474+
1475+ (II) ADMINISTER OATHS IN A PROCEEDING UNDER T HIS 21
1476+SECTION; AND 22
1477+
1478+ (III) SUBJECT TO SUBSECTIO N (B)(3) OF THIS SECTION , ALLOW 23
1479+THE PERSON AGAINST W HOM THE ACTION IS CO NTEMPLATED TO BE REP RESENTED 24
1480+AT THE HEARING BY CO UNSEL; 25
1481+
1482+ (8) (9) ADOPT REGULATIONS NE CESSARY TO CARRY OUT ITS 26
1483+DUTIES UNDER THIS TI TLE; AND 27
1484+
1485+ (9) (10) PERFORM ANY OTHER PO WER AUTHORIZED OR DU TY 28
1486+REQUIRED UNDER THIS TITLE OR ANY OTHER P ROVISION OF STATE LAW. 29
1487+
1488+ (B) THE DIVISION ADMINISTRATION MAY: 30
1489+ HOUSE BILL 556 33
1490+
1491+
1492+ (1) ISSUE A SUBPOENA FOR THE ATTENDANCE OF A WITNESS TO 1
1493+TESTIFY OR THE PRODU CTION OF EVIDENCE IN CONNECTIO N WITH: 2
1494+
1495+ (I) ANY DISCIPLINARY ACT ION UNDER THIS TITLE ; OR 3
1496+
1497+ (II) ANY INVESTIGATION OR PROCEEDING INITIATED FOR AN 4
1498+ALLEGED VIOLATION OF THIS TITLE; 5
1499+
1500+ (2) DELEGATE THE HEARING AUTHORITY AUTHORIZED UNDER 6
1501+SUBSECTION (A)(7) (A)(8) OF THIS SECTION TO AN EMPLOYEE WITHIN THE 7
1502+ADMINISTRATION ; AND 8
1503+
1504+ (3) IF, AFTER DUE NOTICE , THE PERSON AGAINST W HOM A 9
1505+DISCIPLINARY ACTION IS CONTEMPLATED DOES NOT APPEAR AT A HEAR ING, HEAR 10
1506+AND DETERMINE THE MA TTER. 11
1507+
1508+36–203. 12
1509+
1510+ (A) THE DIVISION ADMINISTRATION SHALL: 13
1511+
1512+ (1) EVALUATE THE REGULAT IONS ADOPTED BY THE NATALIE M. 14
1513+LAPRADE MEDICAL CANNABIS COMMISSION IN TITLE 10, SUBTITLE 62 OF THE 15
1514+CODE OF MARYLAND REGULATIONS; AND 16
1515+
1516+ (2) ON OR BEFORE JULY 1, 2023, ADOPT EMERGENCY REGU LATIONS 17
1517+TO: 18
1518+
1519+ (I) CARRY OUT THE LICENS URE REQU IREMENTS SPECIFIED 19
1520+UNDER THIS TITLE ; 20
1521+
1522+ (II) IMPLEMENT PROCEDURES RELATED TO CANNABIS 21
1523+APPLICATIONS, LICENSES, AND REGISTRATIONS IN ACCORDANCE WITH THIS TITLE; 22
1524+
1525+ (III) ASSIST THE COMPTROLLER IN THE CO LLECTION OF TAXES 23
1526+IMPOSED ON THE SALE OF ADULT–USE CANNABIS UNDER § 11–104(K) OF THE TAX – 24
1527+GENERAL ARTICLE; 25
1528+
1529+ (IV) IMPLEMENT INVENTORY MANAGEMENT AND TRACK ING 26
1530+THAT DOES NOT DIFFER ENTIATE BETWEEN ADUL T–USE OR MEDICAL CANNA BIS OR 27
1531+CANNABIS PRODUCTS BE FORE THE POINT OF SA LE, EXCEPT FOR PRODUCTS 28
1532+ALLOWED BY THE DIVISION ADMINISTRATION FOR SALE ONLY TO PAT IENTS AND 29
1533+CAREGIVERS; AND 30
1534+ 34 HOUSE BILL 556
1535+
1536+
1537+ (V) ESTABLISH OPERATING REQUIREMENTS FOR CAN NABIS 1
1538+LICENSEES OR CANNABIS REGISTRA NTS, INCLUDING REQUIREMEN TS FOR: 2
1539+
1540+ 1. SECURITY, INCLUDING LIGHTING , PHYSICAL 3
1541+SECURITY, VIDEO, AND ALARM REQUIREMENTS ; 4
1542+
1543+ 2. SAFE AND SECURE DELI VERY, TRANSPORT, AND 5
1544+STORAGE OF CANNABIS ; 6
1545+
1546+ 3. PREVENTING THE SALE OR DIVERSION OF CANN ABIS 7
1547+AND CANNABIS PRODUCT S TO PERSONS UNDER T HE AGE OF 21 YEARS; AND 8
1548+
1549+ 4. PACKAGING AND LABELI NG OF CANNABIS AND 9
1550+CANNABIS PRODUCTS , INCLUDING CHILD –RESISTANT PACKAGING ; AND 10
1551+
1552+ 5. HEALTH AND SAFETY ST ANDARDS GOVERNING TH E 11
1553+CULTIVATION, MANUFACTURE , TESTING, AND DISPENSING OF CA NNABIS OR 12
1554+CANNABIS PRODUCTS . 13
1555+
1556+ (B) THE EMERGENCY REGULAT IONS THAT THE DIVISION ADMINISTRAT ION 14
1557+IS REQUIRED TO ADOPT UNDER SUBSECTION (A) OF THIS SECTION SHAL L: 15
1558+
1559+ (1) BE SUPPLEMENTAL TO T HE MEDICAL CANNABIS REGULATIONS 16
1560+UNDER TITLE 10, SUBTITLE 62 OF THE CODE OF MARYLAND REGULATIONS; AND 17
1561+
1562+ (2) NOTWITHSTANDING ANY OTHER LAW, REMAIN IN EFFECT UNTIL 18
1563+THE TAKING EFFECT OF NONEMERGENCY REGULAT IONS ADOPTED UNDER 19
1564+SUBSECTION (C) OF THIS SECTION. 20
1565+
1566+ (C) (1) ON OR BEFORE JULY 1, 2024, THE DIVISION ADMINISTRATION 21
1567+SHALL ADOPT NONEMERG ENCY REGULATIONS NECESSARY TO CARRY OUT THE 22
1568+PROVISIONS OF THIS TITLE. 23
1569+
1570+ (2) TO THE EXTENT PRACTIC ABLE, THE DIVISION ADMINISTRATION 24
1571+SHALL ADOPT REGULATI ONS: 25
1572+
1573+ (I) REQUIRING CANNABIS L ICENSEES TO TRANSITI ON FROM A 26
1574+CASH SYSTEM AND TO U SE TRADITIONAL BANKI NG SERVICES; AND 27
1575+
1576+ (II) ESTABLISHING TRADE P RACTICE RESTRICTIONS . 28
1577+
1578+ (3) THE ADMINISTRATION SHALL ADOPT REGULATIONS : 29
1579+
1580+ (I) GOVERNING INTERNET SALES OF CAN NABIS; 30 HOUSE BILL 556 35
1581+
1582+
1583+
1584+ (II) IMPLEMENTING AND SUP PLEMENTING PACKAGING AND 1
1585+LABELING REQUIREMENT S FOR CANNABIS PRODU CTS UNDER § 36–203.1 OF THIS 2
1586+SUBTITLE; 3
1587+
1588+ (III) ESTABLISHING PROCED URES FOR THE USE OF POINT OF 4
1589+SALE TECHNOLOGIES BY DISPENSARIES FOR ALL TRANSACTIONS IN ORDE R TO 5
1590+VERIFY A CONSUMER ’S AGE USING A DRIVER ’S LICENSE OR OTHER V ALID 6
1591+IDENTIFICATION ISSUE D BY A GOVERNMENTAL UNIT SPECIFIED BY TH E 7
1592+ADMINISTRATION ; AND 8
1593+
1594+ (IV) ESTABLISHING HEALTH , SAFETY, SECURITY, AND TRACKING 9
1595+REQUIREMENTS FOR THE PACKAGING AND REPACK AGING OF CANNABIS BY A 10
1596+DISPENSARY IN ACCORD ANCE WITH § 36–203.1 OF THIS SUBTITLE. 11
1597+
1598+ (D) THE REGULATIONS ADOPT ED BY THE DIVISION ADMINISTRATION 12
1599+UNDER THIS SECTION SHALL, TO THE EXTENT PRACTI CABLE, REGULATE MEDICAL 13
1600+AND ADULT–USE CANNABIS IN THE SAME MANNER . 14
1601+
1602+36–203.1. 15
1603+
1604+ (A) THE ADMINISTRATION SHALL ADOPT REGULATIONS ES TABLISHING 16
1605+LIMITS ON THE MAXIMU M POTENCY OF CANNABI S PRODUCTS SOLD IN T HE STATE, 17
1606+INCLUDING LIMITS ON THE MAXIMUM AMOUNT O F THC IN INDIVIDUAL CANNAB IS 18
1607+PRODUCTS AND LIMITS ON THE MAXIMUM AGGRE GATE THC AMOUNT FOR MULTIPLE 19
1608+EDIBLE CANNABIS PROD UCTS PACKAGED TOGETH ER. 20
1609+
1610+ (B) A PACKAGE OF CANNABIS FOR DISTRIBUTION TO A CONSUMER OR 21
1611+QUALIFYING PATIENT S HALL: 22
1612+
1613+ (1) CONFORM TO : 23
1614+
1615+ (I) CHILD–RESISTANT PACKAGING REQUIREMENTS 24
1616+ESTABLISHED UNDER 16 C.F.R. § 1700.15(B)(1); AND 25
1617+
1618+ (II) TAMPER–EVIDENT PACKAGING ; 26
1619+
1620+ (2) PROVIDE THAT PACKAGI NG AND LABELING SHAL L INCLUDE: 27
1621+
1622+ (I) A FINISHED PRODUCT L OT NUMBER AND EXPIRA TION DATE 28
1623+IF APPLICABLE; 29
1624+
1625+ (II) A STATEMENT: 30
1626+ 36 HOUSE BILL 556
1627+
1628+
1629+ 1. THAT CONSUMPTION OF CANNABIS MAY IMPAIR YOUR 1
1630+ABILITY TO DRIVE A C AR OR OPERATE MACHIN ERY, USE EXTREME CAUTION ; 2
1631+
1632+ 2. OF POTENTIAL RISKS A SSOCIATED WITH CANNA BIS 3
1633+USE, ESPECIALLY DURING PR EGNANCY OR BREAST FEEDING; AND 4
1634+
1635+ 3. THAT THIS PACKAGE CO NTAINS CANNABIS , KEEP OUT 5
1636+OF THE REACH OF CHIL DREN AND ANIMALS ; 6
1637+
1638+ (III) THE NAME , ADDRESS, AND PHONE NUMBER OF THE 7
1639+DISPENSARY THAT SOLD THE PRODUCT TO REPOR T AN ADVERSE EVENT ; 8
1640+
1641+ (IV) ANY ALLERGEN WARNING REQUIRED BY LAW ; 9
1642+
1643+ (V) A LISTING OF NONCANN ABIS INGREDIENTS ; AND 10
1644+
1645+ (VI) AN ITEMIZATION, INCLUDING WEIGHT : 11
1646+
1647+ 1. OF ALL CANNABINOID A ND TERPENE INGREDIEN TS 12
1648+SPECIFIED FOR THE PR ODUCT; AND 13
1649+
1650+ 2. CONCENTRATIONS OF AN Y CANNABINOID OF LES S 14
1651+THAN 1% PRINTED WITH A LEADI NG ZERO BEFORE THE D ECIMAL POINT. 15
1652+
1653+ (C) CANNABIS LABELING AND PACKAGING MAY NOT IN CLUDE: 16
1654+
1655+ (1) SUBJECT TO SUBSECTIO N (D) OF THIS SECTION, ANY IMAGE THAT 17
1656+MAY APPEAL TO CHILDR EN INCLUDING: 18
1657+
1658+ (I) IMAGES OF FOOD , CANDY, BAKED GOODS , CEREAL, FRUIT, 19
1659+AND BEVERAGES ; AND 20
1660+
1661+ (II) A RESEMBLANCE TO THE TRADEMARKED CHARACTE RISTIC 21
1662+PRODUCT–SPECIALIZED PACKAGIN G OF ANY COMMERCIALL Y AVAILABLE CANDY , 22
1663+SNACK, BAKED GOOD, CEREAL, OR BEVERAGE ; 23
1664+
1665+ (2) ANY IMAGE THAT IS DE SIGNED OR LIKELY TO APPEAL TO MINO RS, 24
1666+INCLUDING CARTOONS , TOYS, ANIMALS, CHILDREN, OR ANY LIKENESS TO I MAGES, 25
1667+CHARACTERS , OR PHRASES THAT ARE POPULARLY USED TO AD VERTISE TO 26
1668+CHILDREN; 27
1669+
1670+ (3) A STATEMENT , ARTWORK, OR DESIGN THAT COULD REASONABLY 28
1671+MISLEAD ANY INDIVIDU AL TO BELIEVE THAT T HE PACKAGING CONTAINS ANYT HING 29
1672+OTHER THAN A FINISHE D CANNABIS PRODUCT ; AND 30 HOUSE BILL 556 37
1673+
1674+
1675+
1676+ (4) ANY IMAGE OF A SEAL , FLAG, CREST, COAT OF ARMS , OR OTHER 1
1677+INSIGNIA THAT COULD REASONABLY MISLEAD A NY INDIVIDUAL TO BEL IEVE THAT 2
1678+THE PRODUCT HAS BEEN ENDORSED, MANUFACTURED , OR USED BY ANY AGENCY OF 3
1679+A STATE OR POLITICAL SUBDIVISION. 4
1680+
1681+ (D) THE ADMINISTRATION MAY AD OPT REGULATIONS TO A LLOW THE SALE , 5
1682+ON OR BEFORE JULY 1, 2024, OF CANNABIS OR CANNA BIS PRODUCTS THAT AR E 6
1683+LABELED OR PACKAGED USING IMAGES DESCRIB ED UNDER SUBSECTION (C)(1) OF 7
1684+THIS SECTION. 8
1685+
1686+36–204. 9
1687+
1688+ (A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE DIVISION 10
1689+ADMINISTRATION SHALL ESTABLISH AND MAINTAIN A STATE CANNABIS TESTIN G 11
1690+LABORATORY . 12
1691+
1692+ (2) (I) ON OR BEFORE JULY 1, 2023, THE MARYLAND 13
1693+DEPARTMENT OF AGRICULTURE OR THE MARYLAND DEPARTMENT OF HEALTH 14
1694+MAY ENTER INTO A MEM ORANDUM OF UNDERSTAN DING WITH THE DIVISION 15
1695+ADMINISTRATION TO TEST CANNABIS AT AN EXISTING STATE–OWNED LABORATORY 16
1696+IF DOING SO WOULD BE A MORE ECONOMIC AND EFFICIENT ALTERNATIV E TO THE 17
1697+ESTABLISHMENT OF A TESTING LABORATORY U NDER PARAGRAPH (1) OF THIS 18
1698+SUBSECTION. 19
1699+
1700+ (II) IF THE MARYLAND DEPARTMENT OF AGRICULTURE OR 20
1701+THE MARYLAND DEPARTMENT OF HEALTH AND THE DIVISION ADMINISTRATION 21
1702+DETERMINE THAT CO –LOCATING CANNABIS TE STING AT AN EXISTING 22
1703+STATE–OWNED LABOR ATORY IS NOT OPERATI ONALLY FEASIBLE , SUFFICIENT 23
1704+FUNDING SHALL BE PRO VIDED IN THE ANNUAL BUDGET TO COMPLY WIT H 24
1705+PARAGRAPH (1) OF THIS SUBSECTION . 25
1706+
1707+ (B) THE STATE CANNABIS TESTIN G LABORATORY IS RESP ONSIBLE FOR: 26
1708+
1709+ (1) DEVELOPING AND MAINT AINING A CANNABIS LA BORATORY 27
1710+REFERENCE LIBRARY TH AT CONTAINS CANNABIS TESTING METHODOLOGIE S IN THE 28
1711+AREAS OF: 29
1712+
1713+ (I) POTENCY; 30
1714+
1715+ (II) HOMOGENEITY ; 31
1716+
1717+ (III) DETECTION AND QUANTI TATION OF CONTAMINAN TS; AND 32
1718+ 38 HOUSE BILL 556
1719+
1720+
1721+ (IV) SOLVENTS; 1
1722+
1723+ (2) ESTABLISHING STANDAR D OPERATING PROCEDUR ES FOR 2
1724+SAMPLE COLLECTION , PREPARATION , AND ANALYSIS OF CANN ABIS BY 3
1725+INDEPENDENT TESTING LABORATORIES ; 4
1726+
1727+ (3) CONDUCTING PROFICIEN CY TESTING OF INDEPE NDENT TESTING 5
1728+LABORATORIES ; 6
1729+
1730+ (4) REMEDIATING PROBLEMS WITH INDEPENDENT TES TING 7
1731+LABORATORIES ; AND 8
1732+
1733+ (5) CONDUCTING COMPLIANC E TESTING ON CANNABI S SAMPLES 9
1734+ANALYZED BY INDEPEND ENT TESTING LABORATO RIES; AND 10
1735+
1736+ (6) IDENTIFYING AND DETE CTING THE PRESENCE A ND PURITY OF 11
1737+CANNABIS, ALCOHOL, AND TOBACCO IN SAMPL ES OR SEIZED CONTRAB AND IN 12
1738+SUPPORT OF THE REGUL ATORY AUTHORITY OF T HE COMMISSION OR 13
1739+ADMINISTRATION . 14
1740+
1741+ (C) INDEPENDENT TESTING L ABORATORIES LICENSED UNDER § 36–408 OF 15
1742+THIS TITLE SHALL PRO VIDE MATERIALS FOR T HE CANNABIS LABORATO RY 16
1743+REFERENCE LIBRARY . 17
1744+
1745+ (D) THE STATE CANNABIS TESTIN G LABORATORY SHALL H OLD MEDICAL 18
1746+AND ADULT–USE CANNABIS TESTING TO THE SAME STANDARD S. 19
1747+
1748+36–205. 20
1749+
1750+ (A) THE DIVISION ADMINISTRATION MAY IMPOSE REGISTRATION AND 21
1751+OTHER FEES TO DEFRAY THE COSTS OF: 22
1752+
1753+ (1) THE OPERATIONS OF TH E DIVISION ADMINISTRATION AND THE 23
1754+COMMISSION; AND 24
1755+
1756+ (2) ADMINISTERING AND EN FORCING THIS DIVISION TITLE. 25
1757+
1758+ (B) IF FEES ARE IMPOSED U NDER SUBSECTION (A) OF THIS SECTION , THE 26
1759+DIVISION ADMINISTRATION SHALL DEPOSIT THE FE ES COLLECTED IN THE 27
1760+CANNABIS REGULATION AND ENFORCEMENT FUND ESTABLISHED UNDE R § 36–206 28
1761+OF THIS SUBTITLE. 29
1762+
1763+36–206. 30
1764+ HOUSE BILL 556 39
1765+
1766+
1767+ (A) IN THIS SECTION , “FUND” MEANS THE CANNABIS REGULATION AND 1
1768+ENFORCEMENT FUND. 2
1769+
1770+ (B) THERE IS A CANNABIS REGULATION AND ENFORCEMENT FUND. 3
1771+
1772+ (C) THE PURPOSE OF THE FUND IS TO PROVIDE FU NDS TO COVER THE 4
1773+COSTS OF: 5
1774+
1775+ (1) THE OPERATION OF THE DIVISION AND THE COMMISSION 6
1776+ADMINISTRATION ; AND 7
1777+
1778+ (2) ADMINISTERING AND EN FORCING THIS DIVISION TITLE. 8
1779+
1780+ (D) THE COMPTROLLER SHALL ADM INISTER THE FUND AT THE DIRECTION 9
1781+OF THE DIVISION ADMINISTRATION . 10
1782+
1783+ (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 11
1784+SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 12
1785+
1786+ (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 13
1787+AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 14
1788+
1789+ (F) THE FUND CONSISTS OF : 15
1790+
1791+ (1) FEES DISTRIBUTED TO THE FUND UNDER § 36–205 OF THIS 16
1792+SUBTITLE; 17
1793+
1794+ (2) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–1302.2 OF THE 18
1795+TAX – GENERAL ARTICLE; 19
1796+
1797+ (3) INTEREST EARNINGS OF THE FUND; AND 20
1798+
1799+ (4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 21
1800+THE BENEFIT OF THE FUND, IN ACCORDANCE WITH A NY CONDITIONS ADOPTE D BY 22
1801+THE COMMISSION FOR THE AC CEPTANCE OF DONATION S OR GIFTS TO THE FUND. 23
1802+
1803+ (G) THE FUND MAY BE USED ONLY FOR CARRYING OUT THI S DIVISION 24
1804+TITLE. 25
1805+
1806+ (H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 26
1807+IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 27
1808+
1809+ (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 28
1810+THE FUND. 29 40 HOUSE BILL 556
1811+
1812+
1813+
1814+ (I) THE FUND IS SUBJECT TO AU DIT BY THE OFFICE OF LEGISLATIVE 1
1815+AUDITS AS PROVIDED FO R IN § 2–1220 OF THE STATE GOVERNMENT ARTICLE. 2
1816+
1817+ (J) (1) ON OR BEFORE MARCH 15 EACH YEAR, THE COMPTROLLER 3
1818+SHALL PUBLISH ON ITS WEBSITE A DETAILED R EPORT ON REVENUE DISTRIBUTED 4
1819+TO AND EXPENDITURES FROM THE FUND. 5
1820+
1821+ (2) THE REPORT SHALL ALSO BE SUBMITTED TO THE GENERAL 6
1822+ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE. 7
1823+
1824+SUBTITLE 3. MEDICAL USE OF CANNABIS. 8
1825+
1826+36–301. 9
1827+
1828+ (A) THE DIVISION ADMINISTRATION SHALL REGISTER AS A CERTIFYING 10
1829+PROVIDER AN INDIVIDU AL WHO: 11
1830+
1831+ (1) MEETS THE REQUIREMEN TS OF THIS SUBTITLE ; AND 12
1832+
1833+ (2) SUBMITS THE REQUIRED APPLICATION TO THE DIVISION 13
1834+ADMINISTRATION . 14
1835+
1836+ (B) TO BE REGISTERED AS A CERTIFYING PROVIDER , A PROVIDER SHALL 15
1837+SUBMIT AN APPLICATIO N TO THE DIVISION ADMINISTRATION THAT INCLUDES : 16
1838+
1839+ (1) THE REASONS FOR INCL UDING A PATIENT UNDE R THE CARE OF 17
1840+THE PROVIDER FOR THE PURPOSES OF THIS SUB TITLE, INCLUDING THE PATIE NT’S 18
1841+QUALIFYING MEDICAL C ONDITIONS; 19
1842+
1843+ (2) AN ATTESTATION THAT A STANDARD PATIENT E VALUATION WILL 20
1844+BE COMPLETED , INCLUDING A HISTORY , A PHYSICAL EXAMINATI ON, A REVIEW OF 21
1845+SYMPTOMS, AND OTHER RELEVANT M EDICAL INFORMATION ; AND 22
1846+
1847+ (3) THE PROVIDER ’S PLAN FOR TH E ONGOING ASSESSMENT AND 23
1848+FOLLOW–UP CARE OF A PATIENT AND FOR COLLECTING A ND ANALYZING DATA . 24
1849+
1850+ (C) THE DIVISION ADMINISTRATION IS ENCOURAGED TO APP ROVE 25
1851+PROVIDER APPLICATION S FOR THE FOLLOWING : 26
1852+
1853+ (1) A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL CONDITION 27
1854+THAT RESULTS IN A PA TIENT BEING ADMITTED INTO HOSPICE OR RECE IVING 28
1855+PALLIATIVE CARE ; 29
1856+ HOUSE BILL 556 41
1857+
1858+
1859+ (2) A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL CONDITION 1
1860+OR THE TREATMENT OF A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL 2
1861+CONDITION THAT PRODU CES: 3
1862+
1863+ (I) CACHEXIA, ANOREXIA, OR WASTING SYNDROME ; 4
1864+
1865+ (II) SEVERE OR CHRONIC PA IN; 5
1866+
1867+ (III) SEVERE NAUSEA ; 6
1868+
1869+ (IV) SEIZURES; OR 7
1870+
1871+ (V) SEVERE OR PERSISTENT MUSCLE SPASMS ; 8
1872+
1873+ (3) GLAUCOMA ; OR 9
1874+
1875+ (4) POST–TRAUMATIC STRESS DIS ORDER. 10
1876+
1877+ (D) THE DIVISION ADMINISTRATION MAY NOT LIMIT TREATMENT OF A 11
1878+PARTICULAR MEDICAL C ONDITION TO ONE CLAS S OF PROVIDERS. 12
1879+
1880+ (E) THE DIVISION ADMINISTRATION MAY APPROVE APPLICAT IONS THAT 13
1881+INCLUDE ANY OTHER CO NDITION THAT IS SEVE RE AND FOR WHICH OTH ER MEDICAL 14
1882+TREATMENTS HAVE BEEN INEFFECTIVE IF THE S YMPTOMS REASONABLY CAN BE 15
1883+EXPECTED TO BE RELIE VED BY THE MEDICAL U SE OF CANNABIS. 16
1884+
1885+ (F) A CERTIFYING PROVIDER OR THE SPOUSE OF A C ERTIFYING PROVIDER 17
1886+MAY NOT: 18
1887+
1888+ (1) RECEIVE ANY GIFT FRO M A CANNABIS LICENSE E; 19
1889+
1890+ (2) HOLD AN OWNERSHIP IN TEREST IN A CANNABIS LICENSEE OR A 20
1891+BUSINESS THAT CONTRO LS A CANNABIS LICENS EE; OR 21
1892+
1893+ (3) RECEIVE ANY COMPENSA TION FROM A CANNABIS LICENSEE. 22
1894+
1895+ (G) A CERTIFYING PROVIDER SHALL ISSUE EACH WRI TTEN CERTIFICATION 23
1896+IN THE FORM REQUIRED BY THE DIVISION ADMINISTRATION . 24
1897+
1898+ (H) A CERTIFYING PROVIDER MAY DISCUSS MEDICAL CANNABIS WITH A 25
1899+PATIENT. 26
1900+
1901+ (I) (1) A CERTIFYING PROVIDER REGISTRATION IS VALI D FOR 2 YEARS. 27
1902+ 42 HOUSE BILL 556
1903+
1904+
1905+ (2) THE DIVISION ADMINISTRATION SHALL GRANT OR DENY A 1
1906+RENEWAL OF A REGISTR ATION BASED ON THE P ROVIDER’S PERFORMANCE IN 2
1907+COMPLYING WITH REGULAT IONS ADOPTED BY THE DIVISION ADMINISTRATION . 3
1908+
1909+36–302. 4
1910+
1911+ (A) A QUALIFYING PATIENT O R CAREGIVER MAY OBTA IN MEDICAL 5
1912+CANNABIS FROM A DISP ENSARY LICENSED BY T HE DIVISION ADMINISTRATION . 6
1913+
1914+ (B) (1) A QUALIFYING PATIENT W HO IS AT LEAST 21 YEARS OLD MAY NOT 7
1915+CULTIVATE MORE THAN FOUR CANNABIS PLANTS . 8
1916+
1917+ (2) IF TWO OR MORE QUALIF YING PATIENTS WHO AR E AT LEAST 21 9
1918+YEARS OLD RESIDE AT THE SAME RESIDENCE , NOT MORE THAN FOUR C ANNABIS 10
1919+PLANTS MAY BE CULTIV ATED AT THAT RESIDEN CE. 11
1920+
1921+ (3) EXCEPT AS PROV IDED IN PARAGRAPHS (1) AND (2) OF THIS 12
1922+SUBSECTION, A QUALIFYING PATIENT SHALL COMPLY WITH TH E CANNABIS 13
1923+CULTIVATION REQUIREM ENTS ESTABLISHED UND ER § 5–601.2 OF THE CRIMINAL 14
1924+LAW ARTICLE. 15
1925+
1926+ (C) A QUALIFYING PATIENT U NDER THE AGE OF 18 YEARS MAY OBTAIN 16
1927+MEDICAL CANNABIS ONLY THRO UGH: 17
1928+
1929+ (1) THE QUALIFYING PATIE NT’S CAREGIVER; OR 18
1930+
1931+ (2) ANY DESIGNATED SCHOO L PERSONNEL AUTHORIZ ED TO 19
1932+ADMINISTER MEDICAL C ANNABIS TO A STUDENT IN ACCORDANCE WITH T HE 20
1933+GUIDELINES ESTABLISH ED UNDER § 7–446 OF THE EDUCATION ARTICLE. 21
1934+
1935+ (D) A CAREGIVER MAY SERVE NOT MORE THAN FIVE Q UALIFYING PATIENTS 22
1936+AT ANY TIME. 23
1937+
1938+ (E) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A 24
1939+QUALIFYING PATIENT M AY HAVE NOT MORE THA N TWO CAREGIVERS . 25
1940+
1941+ (2) A QUALIFYING PATIENT U NDER THE AGE OF 18 YEARS MAY HAVE 26
1942+NOT MORE THAN FOUR C AREGIVERS. 27
1943+
1944+ (F) A SALE OF CANNABIS OR CANNABIS PRODUCTS TO A QUALIFYING 28
1945+PATIENT IS NOT SUBJE CT TO TAXES IMPOSED ON THE SALE OF CANNA BIS OR 29
1946+CANNABIS PRODUCTS UN DER § 11–104(K) OF THE TAX – GENERAL ARTICLE. 30
1947+
1948+ (G) A QUALIFYING PATIENT MAY POSSESS UP TO: 31 HOUSE BILL 556 43
1949+
1950+
1951+
1952+ (1) 120 GRAMS OF USABLE CANN ABIS; OR 1
1953+
1954+ (2) 36 GRAMS OF DELTA –9–TETRAHYDROCANNABINOL (THC) IN THE 2
1955+CASE OF A CANNABIS –INFUSED PRODUCT . 3
1956+
1957+ (H) DESIGNATED SCHOOL PER SONNEL DESCRIBED IN SUBSECTION (C)(2) 4
1958+OF THIS SECTION: 5
1959+
1960+ (1) MAY ADMINISTER TO A STUDENT ONLY MEDICAL CANNABIS: 6
1961+
1962+ (I) THAT IS OBTAINED THR OUGH THE STUDENT ’S CAREGIVER; 7
1963+AND 8
1964+
1965+ (II) IN ACCORDANCE WITH D OSING, TIMING, AND DELIVERY 9
1966+ROUTE INSTRUCTIONS A S PROVIDED BY THE CE RTIFYING PROVIDER ’S WRITTEN 10
1967+INSTRUCTIONS ; AND 11
1968+
1969+ (2) ARE NOT REQUIRED TO REGISTER WITH THE COMMISSION 12
1970+ADMINISTRATION UNDER THIS SUBTITLE . 13
1971+
1972+ (I) A CAREGIVER MAY ADMINI STER MEDICAL CANNABI S TO A STUDENT 14
1973+WHO IS A QUALIFYING PATIENT OF THE CAREG IVER ON SCHOOL PROPE RTY, DURING 15
1974+SCHOOL–SPONSORED ACTIVITIES , AND WHILE ON A SCHOO L BUS. 16
1975+
1976+SUBTITLE 4. CANNABIS LICENSING. 17
1977+
1978+36–401. 18
1979+
1980+ (A) (1) A PERSON MUST OBTAIN A CANNABIS LICENSE ISS UED BY THE 19
1981+DIVISION ADMINISTRATION TO OPERATE A CANNABI S BUSINESS. 20
1982+
1983+ (2) A CANNABIS LICENSE ISS UED UNDER THIS SUBTI TLE: 21
1984+
1985+ (I) AUTHORIZES THE HOLDE R OF THE LICENSE TO OPERATE A 22
1986+MEDICAL AND ADULT –USE CANNABIS BUSINES S; 23
1987+
1988+ (II) IS VALID FOR 5 YEARS ON INITIAL LIC ENSURE AND 5 YEARS 24
1989+ON RENEWAL ; AND 25
1990+
1991+ (III) MAY BE TRANSFERRED O NLY IN ACCORDANCE WI TH 26
1992+SUBTITLE 5 OF THIS TITLE. 27
1993+
1994+ (B) (1) THE DIVISION ADMINISTRATION SHALL: 28 44 HOUSE BILL 556
1995+
1996+
1997+
1998+ (I) ISSUE STANDARD LICEN SES, MICRO LICENSES , INCUBATOR 1
1999+SPACE LICENSES , AND ON–SITE CONSUMPTION LIC ENSES IN ACCORDANCE WITH 2
2000+THIS TITLE; 3
2001+
2002+ (II) ON OR BEFORE JULY 1, 2023, CONVERT LICENSES THA T 4
2003+WERE ISSUED TO MEDIC AL CANNABIS GROWERS , PROCESSORS , AND DISPENSARIES , 5
2004+INCLUDING THOSE BUSI NESSES PREAPPROVED F OR LICENSURE , TO LICENSES TO 6
2005+OPERATE A MEDICAL AN D ADULT–USE CANNABIS BUSINES S IF: 7
2006+
2007+ 1. A CONVERSION FEE IS PAID IN ACCORDANCE W ITH § 8
2008+36–403 OF THIS SUBTITLE ; AND 9
2009+
2010+ 2. THE BUSINESS COMPLIE S WITH THE OWNERSHIP 10
2011+RESTRICTIONS UNDER S UBSECTION (E) OF THIS SECTION; 11
2012+
2013+ (III) SET PRODUCTION , PROCESSING, SALES, AND OTHER 12
2014+LIMITATIONS AND REQU IREMENTS FOR ALL LIC ENSE TYPES; 13
2015+
2016+ (IV) ISSUE DISPENSARY LIC ENSES IN A MANNER TH AT 14
2017+ENCOURAGES A BALANCE D GEOGRAPHIC DISTRIB UTION BASED ON POPUL ATION 15
2018+AND MARKET DEMAND WI THIN A SPECIFIC COUN TY, AS WELL AS 16
2019+CROSS–JURISDICTIONAL MARKE T DEMAND; AND 17
2020+
2021+ (V) CONSIDER MARKET DEMA ND IN THE ISSUANCE O F ALL 18
2022+LICENSE TYPES; AND 19
2023+
2024+ (VI) (V) ADOPT REGULATIONS RE QUIRING LICENSEES WH OSE 20
2025+LICENSES WERE CONVER TED BY THE DIVISION ADMINISTRATION UNDER ITEM (II) 21
2026+OF THIS PARAGRAPH TO RESERVE A SPECIFIED AMOUNT OF CANNABIS F OR SOCIAL 22
2027+EQUITY LICENSEES . 23
2028+
2029+ (2) THE DIVISION ADMINISTRATION MAY: 24
2030+
2031+ (I) INSPECT A CANNABIS L ICENSEE TO ENSURE CO MPLIANCE 25
2032+WITH THIS TITLE AND THE REGULATIONS ADOP TED UNDER THIS TITLE ; 26
2033+
2034+ (II) REVOKE A CANNABIS LI CENSE IF GOOD FAITH EFFORTS 27
2035+HAVE NOT BEEN MADE B Y THE CANNABIS LICEN SEE TO ESTA BLISH A CANNABIS 28
2036+BUSINESS WITHIN 18 MONTHS AFTER THE LIC ENSE WAS AWARDED ; 29
2037+
2038+ (III) IMPOSE PENALTIES OR RESCIND THE LICENSE OF A 30
2039+CANNABIS LICENSEE TH AT DOES NOT MEET THE STANDARDS FOR LICENS URE 31 HOUSE BILL 556 45
2040+
2041+
2042+ESTABLISHED UNDER TH IS TITLE OR REGULATI ONS ADOPTED UNDER TH IS TITLE; 1
2043+AND 2
2044+
2045+ (IV) CONDITIONALLY AWARD CANNABIS LICENSES . 3
2046+
2047+ (C) (1) A STANDARD LICENSE AUT HORIZES THE HOLDER O F THE 4
2048+LICENSE: 5
2049+
2050+ (I) FOR GROWERS , TO OPERATE MORE THAN 10,000 SQUARE 6
2051+FEET, BUT NOT MORE THAN 300,000 SQUARE FEET , OF INDOOR CANOPY OR ITS 7
2052+EQUIVALENT, AS CALCULATED BY THE DIVISION ADMINISTRATION ; 8
2053+
2054+ (II) FOR PROCESSORS , TO PROCESS MORE THAN 1,000 POUNDS 9
2055+OF CANNABIS PER YEAR , AS CALCULATED BY THE DIVISION ADMINISTRATION ; AND 10
2056+
2057+ (III) FOR DISPENSARIES , TO OPERATE A STORE A T A PHYSICAL 11
2058+LOCATION THAT SELLS CANNABIS O R CANNABIS PRODUCTS . 12
2059+
2060+ (2) A MICRO LICENSE AUTHOR IZES THE HOLDER OF T HE LICENSE: 13
2061+
2062+ (I) FOR GROWERS , TO OPERATE NOT MORE THAN 10,000 14
2063+SQUARE FEET OF INDOO R CANOPY OR ITS EQUI VALENT, AS CALCULATED BY THE 15
2064+DIVISION ADMINISTRATION ; 16
2065+
2066+ (II) FOR PROCESSORS , TO PROCESS NOT MORE THAN 1,000 17
2067+POUNDS OF CANNABIS P ER YEAR, AS CALCULATED BY THE DIVISION 18
2068+ADMINISTRATION ; AND 19
2069+
2070+ (III) FOR DISPENSARIES , TO OPERATE A DELIVER Y SERVICE 20
2071+THAT SELLS CANNABIS OR CANNABIS PRODUCTS WITHOUT A PHYSICAL 21
2072+STOREFRONT , PROVIDED THAT THE LI CENSEE EMPLOYS NOT M ORE THAN 10 22
2073+EMPLOYEES. 23
2074+
2075+ (3) AN INCUBATOR SPACE LI CENSE AUTHORIZES THE HOLDER OF 24
2076+THE LICENSE TO OPERA TE A FACILITY WITHIN WHICH A MICRO LICENS EE MAY 25
2077+OPERATE IN ACCORDANC E WITH § 36–406 OF THIS SUBTITLE. 26
2078+
2079+ (4) AN ON–SITE CONSUMPTION LIC ENSE AUTHORIZES THE HOLDER 27
2080+OF THE LICENSE TO OP ERATE A FACILITY IN ON THE PREMISES OF WHICH 28
2081+INDIVIDUALS CAN SMOK E OUTDOORS, VAPE, OR CONSUME CANNABIS IN 29
2082+ACCORDANCE WITH § 36–407 OF THIS SUBTITLE. 30
2083+ 46 HOUSE BILL 556
2084+
2085+
2086+(D) THE DIVISION ADMINISTRATION MAY NOT ISSUE MORE T HAN THE 1
2087+FOLLOWING NUMBER OF LICENSES PER TYPE , INCLUDING LICENSES C ONVERTED 2
2088+UNDER SUBSECTION (B)(1)(II) OF THIS SECTION: 3
2089+
2090+ (1) FOR STANDARD LICENSE S: 4
2091+
2092+ (I) 75 GROWER LICENSES ; 5
2093+
2094+ (II) 100 PROCESSOR LICENSES ; AND 6
2095+
2096+ (III) 300 DISPENSARY LICENSES ; 7
2097+
2098+ (2) FOR MICRO LICENSES : 8
2099+
2100+ (I) 100 GROWER LICENSES ; 9
2101+
2102+ (II) 100 PROCESSOR LICENSES ; AND 10
2103+
2104+ (III) 200 10 DISPENSARY LICENSES ; 11
2105+
2106+ (3) FOR INCUBATOR SPACE LICENSES, 10 LICENSES; AND 12
2107+
2108+ (4) FOR ON–SITE CONSUMPTION LIC ENSES, 50 LICENSES. 13
2109+
2110+ (E) (1) THIS SUBSECTION APPLI ES TO ALL LICENSES , INCLUDING 14
2111+LICENSES CONVERTED U NDER SUBSECTION (B)(1)(II) OF THIS SECTION. 15
2112+
2113+ (2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , A PERSON 16
2114+MAY HAVE AN OWNERSHI P INTEREST IN OR CON TROL OF, INCLUDING THE POWER TO 17
2115+MANAGE AND OPERATE , ONLY: 18
2116+
2117+ (I) FOR STANDARD LICENSE S AND MICRO LICENSES : 19
2118+
2119+ 1. ONE GROWER LICENSEE ; 20
2120+
2121+ 2. ONE PROCESSOR LICENS EE; AND 21
2122+
2123+ 3. NOT MORE THAN TWO FOUR DISPENSARY LICENSEES ; 22
2124+
2125+ (II) FOR INCUBATOR SPACE LICENSES, NOT MORE T HAN TWO 23
2126+LICENSEES; AND 24
2127+
2128+ (III) FOR ON–SITE CONSUMPTION LIC ENSES, NOT MORE THAN 25
2129+TWO LICENSEES . 26
2130+ HOUSE BILL 556 47
2131+
2132+
2133+ (3) (I) A PERSON WHO OWNS OR C ONTROLS AN INCUBATOR SPACE 1
2134+LICENSEE OR AN ON –SITE CONSUMPTION LIC ENSEE MAY NOT OWN OR CONTROL ANY 2
2135+OTHER CANNABIS LICEN SEE. 3
2136+
2137+ (II) THE DIVISION ADMINISTRATION SHALL ADOPT 4
2138+REGULATIONS LIMITING A PERSON OR FUND FRO M ACQUIRING A NONMAJ ORITY 5
2139+OWNERSHIP INTEREST I N MULTIPLE CANNABIS BUSINESSES BEYOND TH E 6
2140+LIMITATIONS ESTABLIS HED UNDER THIS SUBSE CTION. 7
2141+
2142+ (4) THE RESTRICTIONS IN PARAGRAPH (2) OF THIS SUBSECTION D O 8
2143+NOT APPLY TO A PERSO N OR AN ENTITY WHO H OLDS AN OWNERSHIP IN TEREST ONLY 9
2144+AS A PASSIVE INVESTO R. 10
2145+
2146+ (F) (1) THE HOLDER OF A CANNA BIS LICENSE MAY NOT SURRENDER THE 11
2147+LICENSE AND APPLY FO R A NEW LICENSE IN T HE SAME OR A SIMILAR CATEGORY . 12
2148+
2149+ (2) THE LIMITATION UNDER PARAGRAPH (1) OF THIS SUBSECTION 13
2150+APPLIES TO: 14
2151+
2152+ (I) AFFILIATES, HOLDING COMPANIES , PARENT COMPANIES , 15
2153+OR OTHER RELATED ENT ITIES; 16
2154+
2155+ (II) INDIVIDUALS AND FIRM S WITH IDENTICAL OR 17
2156+SUBSTANTIALLY IDENTI CAL BUSINESS OR ECONOMIC INTEREST S; 18
2157+
2158+ (III) PERSONS WITH COMMON INVESTMENTS ; AND 19
2159+
2160+ (IV) FIRMS THAT ARE ECONO MICALLY DEPENDENT ON EACH 20
2161+OTHER THROUGH CONTRA CTUAL OR OTHER RELAT IONSHIPS. 21
2162+
2163+ (G) A LICENSE ISSUED UNDER THIS TITLE: 22
2164+
2165+ (1) IS NOT PROPERTY AND DOES NOT CON FER PROPERTY RIGHTS ; 23
2166+AND 24
2167+
2168+ (2) IS SUBJECT TO: 25
2169+
2170+ (I) SUSPENSION, REVOCATION , AND RESTRICTIONS 26
2171+AUTHORIZED BY LAW ; AND 27
2172+
2173+ (II) REGULATIONS AUTHORIZ ED UNDER THIS ARTICL E. 28
2174+ 48 HOUSE BILL 556
2175+
2176+
2177+ (H) (1) ON AND AFTER JULY 1, 2023, THE HOLDER OF A LICE NSE ISSUED 1
2178+BY THE NATALIE M. LAPRADE MEDICAL CANNABIS COMMISSION WHO DOES N OT 2
2179+CONVERT THE LICENSE : 3
2180+
2181+ (I) MAY NOT: 4
2182+
2183+ 1. OPERATE UNDER THE LI CENSE; OR 5
2184+
2185+ 2. RENEW THE LICENSE ; BUT 6
2186+
2187+ (II) MAY CONTINUE TO HOLD THE LICENSE FOR RESA LE TO 7
2188+ANOTHER PERSON FOR C ONVERSION UNDER THIS SUBTITLE. 8
2189+
2190+ (2) THE PURCHASER OF A LI CENSE SOLD BY A LICE NSE HOLDER WHO 9
2191+DOES NOT CONVERT A L ICENSE UNDER PARAGRA PH (1) OF THIS SUBSECTION I S 10
2192+RESPONSIBLE FOR PAYI NG THE ONE–TIME CONVERSION FEE UNDER § 36–403 OF 11
2193+THIS SUBTITLE. 12
2194+
2195+ (G) NOTWITHSTANDING ANY P ROVISIONS OF THIS TITL E, THE HOLDER OF A 13
2196+DISPENSARY LICENSE I SSUED BY THE NATALIE M. LAPRADE MEDICAL CANNABIS 14
2197+COMMISSION WHO CONVER TS THE LICENSE OR A REGISTRANT WITH THE NATALIE 15
2198+M. LAPRADE MEDICAL CANNABIS COMMISSION MAY CONTIN UE TO DELIVER 16
2199+MEDICAL CANNABIS UNTIL JULY 1, 2024. 17
2200+
2201+ (H) A LICENSE ISSUED UNDER THIS TITLE: 18
2202+
2203+ (1) IS NOT PROPERTY AND DOES NOT CONFER PROP ERTY RIGHTS; AND 19
2204+
2205+ (2) IS SUBJECT TO: 20
2206+
2207+ (I) SUSPENSION, REVOCATION, AND RESTRICTIONS 21
2208+AUTHORIZED BY LAW ; AND 22
2209+
2210+ (II) REGULATIONS AUTHORIZ ED UNDER THIS ARTICLE . 23
2211+
2212+ (I) (1) ON AND AFTER JULY 1, 2023, THE HOLDER OF A LICE NSE ISSUED 24
2213+BY THE NATALIE M. LAPRADE MEDICAL CANNABIS COMMISSION WHO DOES N OT 25
2214+CONVERT THE LICENSE : 26
2215+
2216+ (I) MAY NOT: 27
2217+
2218+ 1. OPERATE UNDER THE LI CENSE; OR 28
2219+
2220+ 2. RENEW THE LICENSE ; BUT 29 HOUSE BILL 556 49
2221+
2222+
2223+
2224+ (II) MAY CONTINUE TO HOLD THE LICENSE FOR RESA LE TO 1
2225+ANOTHER PERSON FOR C ONVERSION UNDER THIS SUBTITLE. 2
2226+
2227+ (2) THE PURCHASER OF A LI CENSE SOLD BY A LICE NSE HOLDER WHO 3
2228+DOES NOT CONVERT A L ICENSE UNDER PARAGRA PH (1) OF THIS SUBSECTION I S 4
2229+RESPONSIBLE FOR PAYING THE ONE –TIME CONVERSION FEE UNDER § 36–403 OF 5
2230+THIS SUBTITLE. 6
2231+
2232+36–402. 7
2233+
2234+ (A) IT IS THE INTENT OF T HE GENERAL ASSEMBLY TO PRESERVE 8
2235+PRODUCTION AVAILABIL ITY FOR NEW ADULT –USE CANNABIS CULTIVA TION 9
2236+LICENSES ISSUED UNDE R THIS SUBTITLE. 10
2237+
2238+ (B) (1) IF THE LICENSE OF A C ANNABIS LICENSEE IS CONVERTED BY THE 11
2239+DIVISION ADMINISTRATION UNDER § 36–401(B)(1)(II) OF THIS SUBTITLE , THE 12
2240+CANNABIS LICENSEE SH ALL: 13
2241+
2242+ (I) IF THE LICENSEE IS A GROWER, ADHERE TO THE EXPANS ION 14
2243+LIMITATIONS SPECIFIE D UNDER PARAGRAPH (2) OF THIS SUBSECTION ; AND 15
2244+
2245+ (II) PAY THE CONVERSION F EE REQUIRED UNDER § 36–403 OF 16
2246+THIS SUBTITLE. 17
2247+
2248+ (2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 18
2249+PARAGRAPH AND SUBJECT TO SUBPA RAGRAPH (III) OF THIS PARAGRAPH , ON OR 19
2250+BEFORE JANUARY 1, 2026, AN OPERATIONAL BUSINESS T HAT HOLDS A GROWER 20
2251+LICENSE ISSUED BEFOR E OCTOBER 1, 2022 DECEMBER 31, 2022, MAY EXPAND THE 21
2252+CANOPY OF ITS OPERAT IONS AS IT EXISTED O N OCTOBER 1, 2022 DECEMBER 31, 22
2253+2022, AND BASED ON FACILIT Y SQUARE FOOTAGE OF INDOOR CANOPY SPACE OR ITS 23
2254+EQUIVALENT, AS CALCULATED BY THE DIVISION ADMINISTRATION IN ACCORDANCE 24
2255+WITH SUBSECTION (D) OF THIS SECTION, ONLY AS FOLLOWS : 25
2256+
2257+ 1. IF THE CANOPY IS UND ER 25,000 SQUARE FEET , TO 26
2258+25,000 SQUARE FEET OR BY 25% 20%, WHICHEVER IS GREATER ; 27
2259+
2260+ 2. IF THE CANOPY IS AT OR ABOVE 25,000 SQUARE FEET, 28
2261+BY 25% 20%; OR 29
2262+
2263+ 3. IF THE CANNABIS LICE NSEE HAS A SQUARE FO OTAGE 30
2264+EXPANSION THAT WAS P REAPPROVED BEFORE OCTOBER 1, 2022 DECEMBER 31, 31
2265+2022, THE PREAPPROVED EXPA NSION OR 25% 20%, WHICHEVER IS GREATER . 32
2266+ 50 HOUSE BILL 556
2267+
2268+
2269+ (II) IF THE DIVISION ADMINISTRATION AND AN OPERATIONAL 1
2270+BUSINESS DESCRIBED U NDER SUBPARAGRAPH (I) OF THIS PARAGRAPH AR E UNABLE 2
2271+TO AGREE AS TO THE S QUARE FOOTAGE OF THE CANOPY EXPANSION OF THE 3
2272+LICENSEE’S OPERATIONS AUTHORIZE D UNDER SUBPARAGRAPH (I) OF THIS 4
2273+PARAGRAPH , THE SQUARE FOOTAGE OF THE CANOPY EXPANSION SHALL BE 5
2274+CALCULATED BASED ON THE LICENSEE ’S AVERAGE CANNABIS P RODUCTION IN 6
2275+CALENDAR YEARS 2021 AND 2022. 7
2276+
2277+ (III) AN OPERATIONAL BUSINE SS DESCRIBED UNDER 8
2278+SUBPARAGRAPH (I) OF THIS PARAGRAPH MA Y BEGIN TO EXPAND IT S CANOPY OF 9
2279+OPERATIONS: 10
2280+
2281+ 1. BY NOT MORE THAN 50% OF THE TOTAL SQUARE 11
2282+FOOTAGE AUTHORIZED U NDER SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH ON 12
2283+OR AFTER JANUARY 1, 2024; AND 13
2284+
2285+ 2. FOR THE REMAINING TO TAL SQUARE FOOTAGE 14
2286+AUTHORIZED UNDER SUB PARAGRAPH (I) OR (II) OF THIS PARAGRAPH ON OR AFTER 15
2287+MAY 1, 2024. 16
2288+
2289+ (IV) A GROWER LICENSEE MAY NOT OPERATE AN INDOO R 17
2290+CANOPY THAT EXCEEDS 300,000 SQUARE FEET OR ITS E QUIVALENT, AS 18
2291+CALCULATED BY THE DIVISION ADMINISTRATION IN ACCORDANCE WITH 19
2292+SUBSECTION (D) OF THIS SECTION, IF THE GROWER LICENS EE: 20
2293+
2294+ 1. HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE 21
2295+BEFORE OCTOBER 1, 2022; AND 22
2296+
2297+ 2. WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022. 23
2298+
2299+ (C) A BUSINESS THAT IS ISS UED A NEW CANNABIS L ICENSE UNDER § 36–401 24
2300+OF THIS SUBTITLE MAY NOT OPERATE AN INDOO R CANOPY THAT EXCEED S 300,000 25
2301+SQUARE FEET FOR INDO OR CANOPIES OR ITS E QUIVALENT, AS CALCULATED BY THE 26
2302+DIVISION ADMINISTRATION . 27
2303+
2304+ (D) (1) (I) THIS PARAGRAPH APPLIES TO ALL LICENSED GROWERS . 28
2305+
2306+ (II) A LICENSED GROWER SHAL L ACCURATELY CALCULA TE AND 29
2307+REPORT ANNUALLY TO THE DIVISION ADMINISTRATION ITS FLOWERING CANNAB IS 30
2308+PLANT CANOPY AREA . 31
2309+
2310+ (III) THE CANOPY AREA IS ME ASURED USING THE OUTSIDE 32
2311+BOUNDARIES OF A NY AREA THAT INCLUDE S FLOWERING CANNABIS PLANTS AND ALL 33 HOUSE BILL 556 51
2312+
2313+
2314+OF THE SPACE WITHIN THE BOUNDARIES IN ACCORDANCE WITH T HE DEFINITION OF 1
2315+“CANOPY” ESTABLISHED UNDER § 36–101 OF THIS TITLE. 2
2316+
2317+ (IV) FOR THE PURPOSE OF ME ASURING CANOPY , 1 SQUARE 3
2318+FOOT OF INDOOR CANOP Y IS EQUAL TO 4 SQUARE FEET OF OUTDO OR CANOPY. 4
2319+
2320+ (V) THE MAXIMUM AMOUNT OF SPACE FOR CANNABIS 5
2321+PRODUCTION MAY NOT E XCEED THE CANOPY AUT HORIZED UNDER THIS S ECTION. 6
2322+
2323+ (VI) IF THE AMOUNT OF SQUA RE FEET OF PRODUCTIO N FOR A 7
2324+LICENSED GROWER EXCE EDS THE CANOPY A UTHORIZED UNDER THIS SECTION AND 8
2325+§ 36–401 OF THIS SUBTITLE, THE COMMISSION MAY : 9
2326+
2327+ 1. REDUCE THE CANOPY OF THE LICENSED GROWER BY 10
2328+THE SAME PERCENTAGE AS IT EXCEEDS THE AU THORIZED CANOPY ; AND 11
2329+
2330+ 2. SEIZE, DESTROY, CONFISCATE, OR PLACE AN 12
2331+ADMINISTRATIVE HOLD ON ANY FLOWERIN G CANNABIS PLANTS PR ODUCED IN 13
2332+EXCESS OF THE CANOPY . 14
2333+
2334+ (VII) THE ADMINISTRATION SHALL ANNUALLY REPORT TO T HE 15
2335+GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT 16
2336+ARTICLE, THE AMOUNT OF CANOPY AREA REPORTED TO THE ADMINISTRATION BY 17
2337+LICENSED GROWERS UND ER ITEM (II) OF THIS PARAGRAPH . 18
2338+
2339+ (2) THE MAXIMUM AMOUNT OF CANOPY FOR AN OPERAT IONAL 19
2340+BUSINESS THAT HOLDS A LICENSE ISSUED BEF ORE OCTOBER 1, 2022, SHALL BE 20
2341+CALCULATED BASED ON THE MAXIMUM CANOPY O F THE LICENSEE AS 21
2342+SELF–REPORTED BY THE LICE NSEE AND RECORDED BY THE DIVISION NATALIE M. 22
2343+LAPRADE MEDICAL CANNABIS COMMISSION ON OR BEFORE DECEMBER 1, 2022. 23
2344+
2345+ (E) (1) ON OR BEFORE JULY 1, 2024, THE DIVISION ADMINISTRATION 24
2346+SHALL ADOPT MINIMUM STANDARDS FOR LICENS ED GROWERS TO PROTECT THE 25
2347+RIGHTS OF THE GROWER S AND EMPLOYEES CONC ERNING GRIEVANCES , LABOR 26
2348+DISPUTES, WAGES, RATES OF PAY, HOURS, OR OTHER TERMS OR CO NDITIONS OF 27
2349+EMPLOYMENT . 28
2350+
2351+ (2) THE STANDARDS SHALL , AT A MINIMUM , PROTECT THE STATE’S 29
2352+INTERESTS BY PROHIBI TING A LABOR OR GANIZATION FROM ENGA GING IN 30
2353+PICKETING, WORK STOPPAGES , BOYCOTTS, OR ANY OTHER ECONOMI C 31
2354+INTERFERENCE WITH TH E OPERATION OF THE L ICENSED GROWER . 32
2355+
2356+ (3) AS A CONDITION OF LIC ENSURE, THE LICENSED GROWER SHALL: 33
2357+ 52 HOUSE BILL 556
2358+
2359+
2360+ (I) COMPLY WITH THE STAN DARDS ADOPTED UNDER 1
2361+PARAGRAPH (1) OF THIS SUBSECTION ; AND 2
2362+
2363+ (II) NEGOTIATE IN GOOD FA ITH WITH EMPLOYEES A ND ANY 3
2364+LEGITIMATE LABOR ORG ANIZATION RECOGNIZED BY THE DIVISION 4
2365+ADMINISTRATION . 5
2366+
2367+36–403. 6
2368+
2369+ (A) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT HOLDS A 7
2370+CANNABIS LICENS E AND WAS PHYSICALLY AND ACTIVELY ENGAGED IN THE 8
2371+CULTIVATION OR PROCE SSING OF MEDICAL CAN NABIS BEFORE OCTOBER 1, 2022. 9
2372+
2373+ (2) EACH SUBJECT TO SUBSECTION (F) OF THIS SECTION , EACH 10
2374+GROWER OR PROCESSOR SHALL PAY THE FOLLOW ING ONE–TIME CONVERSION FEE 11
2375+BASED ON THE TOTAL GROSS REVE NUE OF THE GROWER OR PROCESSOR IN 2022: 12
2376+
2377+ (I) $100,000 IF THE GROSS REVENUE WAS LESS THAN 13
2378+$1,000,000; 14
2379+
2380+ (II) $500,000 IF THE GROSS REVENUE WAS AT LEAST 15
2381+$1,000,000, BUT NOT MORE THAN $5,000,000; 16
2382+
2383+ (III) $1,000,000 IF THE GROSS REVE NUE WAS MORE THAN 17
2384+$5,000,000, BUT NOT MORE THAN $10,000,000; 18
2385+
2386+ (IV) $1,500,000 IF THE GROSS REVENUE WAS MORE THAN 19
2387+$10,000,000, BUT NOT MORE THAN $15,000,000; 20
2388+
2389+ (V) $2,000,000 IF THE GROSS REVENUE WAS MORE THAN 21
2390+$15,000,000, BUT NOT MORE THAN $20,000,000; OR 22
2391+
2392+ (VI) $2,500,000 IF THE GROSS REVENUE WAS MORE THAN 23
2393+$20,000,000. 24
2394+
2395+ (2) (I) SUBJECT TO SUBSECTION (E) OF THIS SECTION AND EXCEPT 25
2396+AS PROVIDED IN SUBPA RAGRAPH (II) OF THIS PARAGRAPH : 26
2397+
2398+ 1. EACH GROWER AND PROC ESSOR SHALL PAY A 27
2399+ONE–TIME CONVERSION FEE OF 10% OF THE TOTAL GROSS R EVENUE OF THE 28
2400+GROWER OR PROCESSOR IN 2022, BUT NOT MORE THAN $2,000,000; AND 29
2401+ HOUSE BILL 556 53
2402+
2403+
2404+ 2. EACH DISPENSARY SHAL L PAY A ONE –TIME 1
2405+CONVERSION FEE OF 8% OF THE TOTAL GROSS R EVENUE OF THE DISPEN SARY IN 2
2406+2022, BUT NOT MORE THAN $2,000,000. 3
2407+
2408+ (II) THE AMOUNT OF THE CON VERSION FEES IN SUBP ARAGRAPH 4
2409+(I) OF THIS PARAGRAPH MA Y NOT BE LESS THAN $100,000. 5
2410+
2411+ (3) IF A BUSINESS HOLDS A GROWER AND PROCESSOR LICENSE, THE 6
2412+FEE SHALL BE BASED O N TOTAL GROSS REVENU E FROM BOTH LICENSE TYPES. 7
2413+
2414+ (B) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT HOLDS A 8
2415+CANNABIS LICENSE AND WAS PHYSICALLY AND A CTIVELY ENGAGED IN T HE 9
2416+DISPENSING OF MEDICA L CANNABIS BEFORE OCTOBER 1, 2022. 10
2417+
2418+ (2) EACH SUBJECT TO SUBSECTION (F) OF THIS SECTION , EACH 11
2419+DISPENSARY SHALL PAY THE FOLLOW ING ONE–TIME CONVERSION FEE BASED ON 12
2420+THE GROSS REVENUE OF THE DISPENSARY IN 2022: 13
2421+
2422+ (I) $100,000 IF THE GROSS REVENUE WAS LESS THAN 14
2423+$1,000,000; 15
2424+
2425+ (II) $250,000 IF THE GROSS REVENUE WAS AT LEAST 16
2426+$1,000,000, BUT NOT MORE THAN $5,000,000; 17
2427+
2428+ (III) $500,000 IF THE GROSS REVENUE WAS MORE THAN 18
2429+$5,000,000, BUT NOT MORE THAN $10,000,000; 19
2430+
2431+ (IV) $1,000,000 IF THE GROSS REVENUE WAS MORE THAN 20
2432+$10,000,000, BUT NOT MORE THAN $15,000,000; 21
2433+
2434+ (V) $1,500,000 IF THE GROSS REVENUE WAS MORE THAN 22
2435+$15,000,000, BUT NOT MORE THAN $20,000,000; OR 23
2436+
2437+ (VI) $2,000,000 IF THE GROSS REVENUE WAS MORE THAN 24
2438+$20,000,000. 25
2439+
2440+ (C) (B) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT: 26
2441+
2442+ (I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE 27
2443+OCTOBER 1, 2022; AND 28
2444+
2445+ (II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022. 29
2446+ 54 HOUSE BILL 556
2447+
2448+
2449+ (2) A SUBJECT TO SUBSECTION (F) (E) OF THIS SECTION, A GROWER 1
2450+OR PROCESSOR SHALL P AY A ONE–TIME CONVERSION FEE OF $50,000. 2
2451+
2452+ (3) A SUBJECT TO SUBSECTION (F) (E) OF THIS SECTION , A 3
2453+DISPENSARY SHALL P AY A ONE–TIME CONVERSION FEE OF $25,000. 4
2454+
2455+ (D) (C) (1) THIS SUBSECTION APPLI ES ONLY TO AN APPLIC ANT 5
2456+APPLYING FOR A CANNA BIS LICENSE UNDER § 36–404 OF THIS SUBTITLE. 6
2457+
2458+ (2) AN APPLICANT FOR A ST ANDARD LICENSE , AN INCUBATOR SPACE 7
2459+LICENSE, OR AN ON–SITE CONSUMPTION LICENSE SHALL PAY AN APPLICA TION FEE 8
2460+OF $5,000. 9
2461+
2462+ (3) AN APPLICANT FOR A MI CRO LICENSE SHALL PA Y AN 10
2463+APPLICATION FEE OF $1,000. 11
2464+
2465+ (E) (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 12
2466+DIVISION PARAGRAPHS (2) AND (3) OF THIS SUBSECTION , THE ADMINISTRATION 13
2467+SHALL ESTABLISH LICENSING AND RENEWAL FEES FOR ALL CANNABIS LICENSES . 14
2468+
2469+ (2) THE RENEWAL FEES ESTA BLISHED UNDER PARAGR APH (1) OF 15
2470+THIS SUBSECTION MAY NOT EXCEED 10% OF THE CANNABIS LICE NSEE’S ANNUAL 16
2471+GROSS REVENUE . 17
2472+
2473+ (2) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION , 18
2474+THE LICENSING AND RE NEWAL FEES ESTABLISH ED UNDER PARAGRAPH (1) OF THIS 19
2475+SUBSECTION FOR STAND ARD CANNABIS LICENSE ES MAY NOT EXCEED : 20
2476+
2477+ (I) FOR INITIAL LICENSE FEES, $50,000; AND 21
2478+
2479+ (II) FOR RENEWAL LICENSE FEES, THE LESSER OF 10% OF THE 22
2480+STANDARD CANNABIS LI CENSEE’S ANNUAL GROSS REVEN UE OR $50,000. 23
2481+
2482+ (3) THE ADMINISTRATION SHALL REDUCE LICENSING AND RENEWAL 24
2483+FEES BY AT LEAST 50% FOR SOCIAL EQUITY LI CENSES, MICRO LICENSES , INCUBATOR 25
2484+SPACE LICENSES , AND ON–SITE CONSUMPTI ON LICENSES. 26
2485+
2486+ (F) (E) (1) THE ONE–TIME CONVERSION FEES UNDER THIS SECTION : 27
2487+
2488+ (I) MAY BE PAID IN SEPAR ATE INSTALLMENTS ; AND 28
2489+
2490+ (II) SHALL BE PAID IN FUL L ON OR BEFORE JANUARY 1, 2025. 29
2491+ HOUSE BILL 556 55
2492+
2493+
2494+ (2) THE AMOUNT OF ANY LICENSING OR RENEWAL FEE PAID BY A 1
2495+BUSINESS FOR FISCAL YEAR 2023 TO THE NATALIE M. LAPRADE MEDICAL 2
2496+CANNABIS COMMISSION SHALL BE C REDITED AGAINST THE ONE–TIME CONVERSION 3
2497+FEE ASSESSED UNDER T HIS SECTION. 4
2498+
2499+ (G) (F) ALL FEES COLLECTED UN DER THIS SECTION SHA LL BE PAID TO 5
2500+THE DIVISION ADMINISTRATION . 6
2501+
2502+36–404. 7
2503+
2504+ (A) (1) ON OR BEFORE JANUARY 1, 2024, THE DIVISION 8
2505+ADMINISTRATION SHALL BEGIN ISSUING FIRST ROUND LICENSES IN ACCORDANCE 9
2506+WITH SUBSECTION (D) OF THIS SECTION. 10
2507+
2508+ (2) ON OR AFTER MAY 1, 2024, THE DIVISION ADMINISTRATION 11
2509+SHALL BEGIN ISSUING SECOND ROUND LICENSES IN AC CORDANCE WITH 12
2510+SUBSECTIONS (E) OR (F) OF THIS SECTION. 13
2511+
2512+ (3) SUBJECT TO PARAGRAPHS (1) AND (2) OF THIS SUBSECTION , THE 14
2513+DIVISION ADMINISTRATION MAY ISSUE LICENSES I N ACCORDANCE WITH 15
2514+SUBSECTION (G) OF THIS SECTION. 16
2515+
2516+ (B) (1) THE DIVISION ADMINISTRATION SHALL: 17
2517+
2518+ (I) CONDUCT EXTENSIVE OU TREACH TO SMALL , MINORITY, 18
2519+AND WOMEN BUSINESS O WNERS AND ENTREPRENE URS WHO MAY HAVE AN INTEREST 19
2520+IN APPLYING FOR A CA NNABIS LICENSE BEFOR E ACCEPTING AND PROC ESSING 20
2521+CANNABIS LICENSE APP LICATIONS; 21
2522+
2523+ (II) CONNECT POTENTIAL SO CIAL EQUITY APPLICAN TS WITH 22
2524+THE OFFICE OF SOCIAL EQUITY; 23
2525+
2526+ (III) ACCEPT AND PROCESS A PPLICATIONS FOR LICE NSES: 24
2527+
2528+ 1. IN RESPONSE TO A REQ UEST FOR APPLICATION S 25
2529+ISSUED UNDER THIS SE CTION; 26
2530+
2531+ 2. FOR A PERIOD OF 30 CALENDAR DAYS ; AND 27
2532+
2533+ 3. BEGINNING ON A DATE THAT IS AT LEAST 60 28
2534+CALENDAR DAYS AFTER THE DATE ON WHICH TH E DIVISION ADMINISTRATION 29
2535+ISSUED THE REQUEST F OR APPLICATIONS ; 30
2536+ 56 HOUSE BILL 556
2537+
2538+
2539+ (IV) AWARD CANNABIS LICEN SES IN AT LEAST TWO SEPARATE 1
2540+ROUNDS IN ACCORDANCE WITH THIS SECTION ; AND 2
2541+
2542+ (V) RESERVE A REASONABLE NUMBER OF LICENSES T O ALLOW 3
2543+MICRO LICENSES TO TR ANSITION TO STANDARD LICENSES, AS DETERMINED IN 4
2544+REGULATIONS BY THE DIVISION ADMINISTRATION . 5
2545+
2546+ (2) THE DIVISION ADMINISTRATION MAY SUSPEND , FINE, RESTRICT, 6
2547+OR REVOKE A CANNABIS LICENSE IF IT IS DETERMINED THAT A CANNA BIS LICENSEE 7
2548+HAS NOT COMPLIED WIT H STATEMENTS IN THE APPLICATION, INCLUDING 8
2549+STATEMENTS ABOUT STA NDARDS OF OPERATION OR EMPLOYMENT PRACTI CES 9
2550+RELATED TO DIVERSITY , EQUITY, AND INCLUSION . 10
2551+
2552+ (3) THE DIVISION ADMINISTRAT ION MAY NOT: 11
2553+
2554+ (I) ACCEPT MORE THAN ONE APPLICATION PER LICE NSE TYPE 12
2555+FROM AN APPLICANT IN ANY ROUND; 13
2556+
2557+ (II) ACCEPT MORE THAN TWO APPLICATIONS FROM AN 14
2558+APPLICANT IN ANY ROU ND; 15
2559+
2560+ (III) REQUIRE THAT AN APPL ICANT POSSESS OR OWN A 16
2561+PROPERTY OR FACILITY TO OPERATE A CANNABIS BU SINESS AT THE TIME O F 17
2562+APPLICATION; OR 18
2563+
2564+ (IV) REGARDLESS OF THE NU MBER OF LICENSE AWAR DS 19
2565+AUTHORIZED IN EACH R OUND, AWARD MORE LICENSES THAN THE TOTAL NUMBE R 20
2566+OF LICENSES AUTHORIZ ED UNDER § 36–401(D) OF THIS SUBTITLE; OR 21
2567+
2568+ (V) CONDUCT A MARKET DEMAND STUD Y BEFORE THE FIRST 22
2569+ROUND LICENSES ARE I SSUED. 23
2570+
2571+ (4) THE DIVISION ADMINISTRATION MAY ADOPT REGULATION S 24
2572+CONCERNING THE EQUIT Y AND FAIRNESS OF TH E POOL OF APPLICANTS 25
2573+THROUGHOUT THE APPLI CATION PROCESS . 26
2574+
2575+ (C) TO BE LICENSED , AN APPLICANT SHALL S UBMIT TO THE DIVISION 27
2576+ADMINISTRATION : 28
2577+
2578+ (1) AN APPLICATION FEE I N ACCORDANCE WITH § 36–403 OF THIS 29
2579+SUBTITLE; AND 30
2580+
2581+ (2) AN APPLICATION DEVEL OPED BY THE DIVISION ADMINISTRATION 31
2582+UNDER THIS TITLE . 32 HOUSE BILL 556 57
2583+
2584+
2585+
2586+ (D) (1) FOR THE FIRST ROUND , SUBJECT TO PARAGRAPH S (2) AND (3) OF 1
2587+THIS SUBSECTION , THE DIVISION ADMINISTRATION SHALL ENTER EACH SOC IAL 2
2588+EQUITY APPLICANT THA T MEETS THE MINIMUM QUALIFICATIONS ESTAB LISHED BY 3
2589+THE DIVISION ADMINISTRATION INTO A LOTTERY AND I SSUE TO SOC IAL EQUITY 4
2590+APPLICANTS NOT MORE THAN: 5
2591+
2592+ (I) FOR STANDARD LICENSE S: 6
2593+
2594+ 1. 20 GROWER LICENSES ; 7
2595+
2596+ 2. 40 PROCESSOR LICENSES ; AND 8
2597+
2598+ 3. 80 DISPENSARY LICENSES ; 9
2599+
2600+ (II) FOR MICRO LICENSES : 10
2601+
2602+ 1. 30 GROWER LICENSES ; 11
2603+
2604+ 2. 30 PROCESSOR LICENSES ; AND 12
2605+
2606+ 3. 75 10 DISPENSARY LICENSES ; AND 13
2607+
2608+ (III) 10 INCUBATOR SPACE LICE NSES. 14
2609+
2610+ (2) THE DIVISION ADMINISTRATION SHALL DETERMINE WHET HER 15
2611+AN APPLICATION MEETS THE MINIMUM QUALIFIC ATIONS FOR THE LOTTE RY ON A 16
2612+PASS–FAIL BASIS, AS DETERMINED BY THE DIVISION ADMINISTRATION , AFTER 17
2613+EVALUATING: 18
2614+
2615+ (I) A DETAILED OPERATION AL PLAN FOR THE SAFE , SECURE, 19
2616+AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS; 20
2617+
2618+ (II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF 21
2619+SUCCESS AND SUFFICIE NT BUSINESS ABILITY AND EXPERIENCE ON THE PART OF 22
2620+THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING 23
2621+CONDITIONS; AND 24
2622+
2623+ (III) A DETAILED DIVERSITY PLAN. 25
2624+
2625+ (3) (I) IF AN APPLICANT SEEKI NG SOCIAL EQUITY STA TUS IS FROM 26
2626+OUT–OF–STATE, THE APPLICANT MUST S UBMIT WITH THE APPLICATION EVIDENCE 27
2627+THAT THE APPLICANT M EETS THE CRITERIA FO R A SOCIAL EQUITY AP PLICANT 28 58 HOUSE BILL 556
2628+
2629+
2630+ESTABLISHED UNDER TH IS TITLE BEFORE THE ADMINISTRATION MAY CO NSIDER 1
2631+THE APPLICATION . 2
2632+
2633+ (II) FIRST ROUND APPLICATI ON SUBMISSIONS FOR A LL 3
2634+LICENSE TYPES ARE LI MITED TO SOCIAL EQUITY APPLIC ANTS. 4
2635+
2636+ (4) (I) ON OR BEFORE JANUARY 1, 2024, THE ADMINISTRATION 5
2637+SHALL SUBMIT AN INTE RIM REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE 6
2638+WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE ABILITY OF MI CRO 7
2639+DISPENSARY LICENSEES TO SAFELY AND SECURELY DISP ENSE CANNABIS . 8
2640+
2641+ (II) ON OR BEFORE DECEMBER 31, 2024, THE ADMINISTRATION 9
2642+SHALL SUBMIT A REPOR T TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 10
2643+2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE ABILITY OF MI CRO 11
2644+DISPENSARY LICENSEES TO SAFELY AND SECURELY DISP ENSE CANNABIS . 12
2645+
2646+ (E) FOR THE SECOND ROUND OF LICENSING , THE DIVISION 13
2647+ADMINISTRATION SHALL ISSUE LICENSES IN ACCORDANCE WITH S UBSECTION (F) 14
2648+OR (G) OF THIS SECTION. 15
2649+
2650+ (E) (F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF THE 16
2651+DIVISION ADMINISTRATION , IN CONSULTATION WITH THE CERTIFICATION AG ENCY 17
2652+DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER § 14–303(B) OF THE STATE 18
2653+FINANCE AND PROCUREMENT ARTICLE, THE GOVERNOR’S OFFICE OF SMALL, 19
2654+MINORITY, AND WOMEN BUSINESS AFFAIRS, THE GENERAL ASSEMBLY, AND THE 20
2655+OFFICE OF THE ATTORNEY GENERAL, DETERMINES THAT THE APPLICANTS 21
2656+AWARDED A LICENSE UN DER SUBSECTION (D) OF THIS SECTION ARE NOT DIVERSE 22
2657+AND A DISPARITY STUD Y DETERMINES THAT TH ERE IS A COMPELLING INTEREST TO 23
2658+IMPLEMENT REMEDIAL M EASURES TO ASSIST MINORITIES AN D WOMEN IN THE 24
2659+CANNABIS INDUSTRY A DISPARITY STUDY DE MONSTRATES A STRONG BASIS IN 25
2660+EVIDENCE OF BUSINESS DISCRIMINATION AGAIN ST FIRMS OWNED BY MI NORITIES 26
2661+AND WOMEN IN THE MARYLAND CANNABIS MAR KET, THE DIVISION 27
2662+ADMINISTRATION SHALL ENTER EACH APPLICANT THAT M EETS THE MINIMUM 28
2663+QUALIFICATIONS ESTAB LISHED BY THE DIVISION INTO A LOTTE RY AND ISSUE TO 29
2664+THE APPLICANTS A SECOND ROUND OF LI CENSES, APPLYING MINIMUM LIC ENSING 30
2665+QUALIFICATIONS AND EMPLOYING REMEDIAL M EASURES CONSISTENT W ITH 31
2666+CONSTITUTIONAL REQUIREMENTS , FOR NOT MORE THAN : 32
2667+
2668+ (I) FOR STANDARD LICENSE S: 33
2669+
2670+ 1. 25 GROWER LICENSES ; 34
2671+
2672+ 2. 25 PROCESSOR LICENSES ; AND 35
2673+ HOUSE BILL 556 59
2674+
2675+
2676+ 3. 120 DISPENSARY LICENSES ; 1
2677+
2678+ (II) FOR MICRO LICENSES : 2
2679+
2680+ 1. 70 GROWER LICENSES ; AND 3
2681+
2682+ 2. 70 PROCESSOR LICENSES ; AND 4
2683+
2684+ 3. 125 190 DISPENSARY LICENSES ; 5
2685+
2686+ (III) 10 INCUBATOR SPACE LICE NSES; AND 6
2687+
2688+ (IV) 15 ON–SITE CONSUMPTION LIC ENSES. 7
2689+
2690+ (2) THE DIVISION SHALL DETERM INE WHETHER AN APPLI CATION 8
2691+MEETS THE MINIMUM QU ALIFICATIONS FOR A L OTTERY BASED ON A PA SS–FAIL 9
2692+BASIS, AS DETERMINED BY THE DIVISION, AFTER EVALUATING : 10
2693+
2694+ (I) A DETAILED OPERATION AL PLAN FOR THE SAFE , SECURE, 11
2695+AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS; 12
2696+
2697+ (II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF 13
2698+SUCCESS AND SUFFICI ENT BUSINESS ABILITY AND EXPERIENCE ON TH E PART OF 14
2699+THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING 15
2700+CONDITIONS; 16
2701+
2702+ (III) A DETAILED DIVERSITY PLAN; AND 17
2703+
2704+ (IV) REMEDIAL MEASURES ES TABLISHED IN ACCORDA NCE 18
2705+WITH A DISPARITY STU DY. 19
2706+
2707+ (2) IF THE DIVISION ADMINISTRATION , IN CONSULTATION WITH THE 20
2708+CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER § 21
2709+14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE 22
2710+GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE 23
2711+GENERAL ASSEMBLY, AND THE OFFICE OF THE ATTORNEY GENERAL, DETERMINES 24
2712+THAT A LOTTERY SYSTE M EMPLOYING REMEDIAL MEASURES ESTABLISHED IN 25
2713+ACCORDANCE WITH A DI SPARITY STUDY CAN BE CONDUCTED CONSISTENT WITH 26
2714+CONSTITUTIONAL REQUI REMENTS, THE DIVISION ADMINISTRATION SHALL AWARD 27
2715+LICENSES UNDER P ARAGRAPH (1) OF THIS SUBSECTION T HROUGH A LOTTERY 28
2716+PROCESS THAT EMPLOYS REMEDIAL MEASURES . 29
2717+
2718+ (F) (G) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS 30
2719+SUBSECTION, IF THE DIVISION ADMINISTRATION , IN CONSULTATION WITH THE 31 60 HOUSE BILL 556
2720+
2721+
2722+CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER § 1
2723+14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE 2
2724+GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE 3
2725+GENERAL ASSEMBLY, AND THE OFFICE OF THE ATTORNEY GENERAL, DETERMINES 4
2726+THAT THE APPLICANTS AWARDED A LICENSE UNDER SUBS ECTION (D) OF THIS 5
2727+SECTION ARE DIVERSE REGARDLESS OF THE RE SULTS OF A DISPARITY STUDY DOES 6
2728+NOT DEMONSTRATE A ST RONG BASIS IN EVIDEN CE OF BUSINESS DISCR IMINATION 7
2729+AGAINST FIRMS OWNED BY MINORITIES AND WO MEN IN THE MARYLAND CANNABIS 8
2730+MARKET, THE DIVISION ADMINISTRATION SHALL ENTER EACH APP LICANT THAT 9
2731+MEETS THE MINIMUM QU ALIFICATIONS ESTABLI SHED BY THE DIVISION 10
2732+ADMINISTRATION INTO A LOTTERY AND I SSUE TO THE APPLICAN TS NOT MORE 11
2733+THAN: 12
2734+
2735+ (I) FOR STANDARD LICENSE S: 13
2736+
2737+ 1. 25 GROWER LICENSES ; 14
2738+
2739+ 2. 25 PROCESSOR LICENSES ; AND 15
2740+
2741+ 3. 120 DISPENSARY LICENSES ; 16
2742+
2743+ (II) FOR MICRO LICENSES : 17
2744+
2745+ 1. 70 GROWER LICENSES ; AND 18
2746+
2747+ 2. 70 PROCESSOR LICENSES ; AND 19
2748+
2749+ 3. 125 190 DISPENSARY LICENSES ; 20
2750+
2751+ (III) 10 INCUBATOR SPACE LICE NSES; AND 21
2752+
2753+ (IV) 15 ON–SITE CONSUMPTION LIC ENSES. 22
2754+
2755+ (2) THE DIVISION ADMINISTRATION SHALL DETERMINE WHET HER 23
2756+AN APPLICATION MEETS THE MINIMUM QUALIFIC ATIONS FOR A LOTTERY BASED ON 24
2757+A PASS–FAIL BASIS, AS DETERMINED BY THE DIVISION ADMINISTRATION , AFTER 25
2758+EVALUATING: 26
2759+
2760+ (I) A DETAILED OPERATIONAL PLAN FOR THE SAFE , SECURE, 27
2761+AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS; 28
2762+
2763+ (II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF 29
2764+SUCCESS AND SUFFICIE NT BUSINESS ABILITY AND EXPERIENCE ON TH E PART OF 30 HOUSE BILL 556 61
2765+
2766+
2767+THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING 1
2768+CONDITIONS; 2
2769+
2770+ (III) A DETAILED DIVERSITY PLAN; AND 3
2771+
2772+ (IV) FOR ALL LICENSE TYPE S EXCEPT MICRO LICEN SES, 4
2773+WHETHER OR NOT THE A PPLICANT QUALIFIES A S A SOCIAL EQUITY AP PLICANT. 5
2774+
2775+ (3) SECOND ROUND APPLICAT ION APPLICATION SUBMISSIONS FOR 6
2776+MICRO LICENSES UNDER THIS SUBSECTION ARE LIMITED TO SOCIAL EQ UITY 7
2777+APPLICANTS. 8
2778+
2779+ (G) (H) (1) FOR CANNABIS LICENSE AWARDS SUBSEQUENT TO THE 9
2780+ROUND SPECIFIED UNDE R PARAGRAPH (2) SUBSECTION (F) OR (G) OF THIS 10
2781+SUBSECTION SECTION, THE DIVISION ADMINISTRATION SHALL AWARD LICENSES IN 11
2782+ACCORDANCE WITH THIS SUBSECTION. 12
2783+
2784+ (2) THE DIVISION ADMINISTRATION SHALL AWARD LICENSES AS 13
2785+NEEDED IN ACCORDANCE WITH A MARKET DEMAND STUDY. 14
2786+
2787+ (2) (3) THE DIVISION ADMINISTRATION MAY: 15
2788+
2789+ (I) SHALL DETERMINE WHETHER AN APPLICATI ON MEETS THE 16
2790+MINIMUM QUALIFICATIO NS FOR A LOTTERY BAS ED ON FACTORS THAT I T DEVELOPS; 17
2791+AND 18
2792+
2793+ (II) MAY LIMIT SOME OR ALL OF THE LICENSES ISSUED UNDER 19
2794+THIS PARAGRAPH TO SO CIAL EQUITY APPLICAN TS OR MINORITY BUSINESS 20
2795+APPLICANTS, IF DOING SO IS NEEDED TO ENSU RE DIVERSITY AND INC LUSION IN THE 21
2796+INDUSTRY, AS WARRANTED BY THE DISPARITY STUDY ; AND 22
2797+
2798+ (II) EMPLOY REMEDIAL MEAS URES, CONSISTENT WITH 23
2799+CONSTITUTIONAL REQUI REMENTS, IF THE DIVISION ADMINISTRATION , IN 24
2800+CONSULTATION WITH TH E CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF 25
2801+PUBLIC WORKS UNDER § 14–303(B) OF THE STATE FINANCE AND PROCUREMENT 26
2802+ARTICLE, THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS 27
2803+AFFAIRS, THE GENERAL ASSEMBLY, AND THE OFFICE OF THE ATTORNEY 28
2804+GENERAL, DETERMINES TH AT A DISPARITY STUDY DEMONSTRATES A STRON G BASIS 29
2805+IN EVIDENCE OF BUSIN ESS DISCRIMINATION A GAINST FIRMS OWNED B Y MINORITIES 30
2806+AND WOMEN IN THE MARYLAND CANNABIS MAR KET. 31
2807+
2808+ (I) (1) TO THE EXTENT PRACTIC ABLE AND AUTHORIZED BY THE U.S. 32
2809+CONSTITUTION, A CANNABIS LICENSEE SHALL COMPL Y WITH THE STATE’S 33
2810+MINORITY BUSINESS ENTERPRISE PROGRAM. 34 62 HOUSE BILL 556
2811+
2812+
2813+
2814+ (2) THE ADMINISTRATION , IN CONSULTATION WITH THE 1
2815+CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER § 2
2816+14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE GOVERNOR’S 3
2817+OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE GENERAL 4
2818+ASSEMBLY, AND THE OFFICE OF THE ATTORNEY GENERAL, SHALL REVIEW THE 5
2819+DISPARITY STUDY REQU IRED BY CHAPTER 26 OF THE ACTS OF 2022 TO EVALUATE 6
2820+WHETHER APPLICATION OF THE STATE’S MINORITY BUSINESS ENTERPRISE 7
2821+PROGRAM TO CANNABIS L ICENSES WOULD COMPLY WITH THE CITY OF RICHMOND V. 8
2822+J.A. CROSON CO., 488 U.S. 469, AND ANY SUBSEQUENT F EDERAL OR 9
2823+CONSTITUTIONAL REQUI REMENTS. 10
2824+
2825+ (3) ON OR BEFORE 6 MONTHS AFTER THE ISS UANCE OF A CANNABIS 11
2826+LICENSE UNDER § 36–401 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE, 12
2827+THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, 13
2828+IN CONSULTATION WITH THE OFFICE OF THE ATTORNEY GENERAL AND THE OFFICE 14
2829+OF SOCIAL EQUITY WITHIN THE ALCOHOL, TOBACCO, AND CANNABIS COMMISSION 15
2830+AND THE CANNABIS LIC ENSEE, SHALL ESTABLISH A CL EAR PLAN FOR SETTING 16
2831+REASONABLE AND APPRO PRIATE MINORITY BUSI NESS ENTERPRISE PART ICIPATION 17
2832+GOALS AND PROCEDURES FOR THE PROCUREMENT OF GOODS AND SERVICE S 18
2833+RELATED TO CANNABIS , INCLUDING THE CULTIVATION, MANUFACTURING , AND 19
2834+DISPENSING OF CANNAB IS. 20
2835+
2836+ (4) TO THE EXTENT PRACTIC ABLE, THE GOALS AND PROCED URES 21
2837+SPECIFIED IN PARAGRA PH (3) OF THIS SUBSECTION S HALL BE BASED ON THE 22
2838+REQUIREMENTS OF TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND 23
2839+PROCUREMENT ARTICLE AND THE REGUL ATIONS IMPLEMENTING THAT SUBTITLE. 24
2840+
2841+36–405. 25
2842+
2843+ (A) A LOCAL JURISDICTION POLITICAL SUBDIVISIO N MAY: 26
2844+
2845+ (1) ESTABLISH REASONABLE ZONING REQUIREMENTS FOR CANNABIS 27
2846+BUSINESSES; AND 28
2847+
2848+ (2) DECIDE HOW TO DISTRI BUTE ITS ALLOCATION OF REVENUE 29
2849+UNDER § 2–1302.2 OF THE TAX – GENERAL ARTICLE. 30
2850+
2851+ (B) A LOCAL JURISDICTION POLITICAL SUBDIVISIO N MAY NOT: 31
2852+
2853+ (1) IMPOSE A TAX ON CANN ABIS; 32
2854+
2855+ (2) (1) ESTABLISH ZONING OR OTHER REQUIREMENTS T HAT 33
2856+UNDULY BURDEN A CANN ABIS LICENSEE; 34 HOUSE BILL 556 63
2857+
2858+
2859+
2860+ (3) (2) IMPOSE LICENSING, OPERATING, OR OTHER FEES OR 1
2861+REQUIREMENTS ON A CA NNABIS LICENSEE THAT ARE DISPROPORTIONATE LY 2
2862+GREATER OR MORE BURD ENSOME THAN THOSE IM POSED ON OTHER BUSIN ESSES 3
2863+WITH A SIMILAR IMPAC T ON THE AREA WHERE THE CANNABIS LICENSE E IS 4
2864+LOCATED; 5
2865+
2866+ (3) PROHIBIT TRANSPORTATION TH ROUGH OR DELIVERIES WITHIN 6
2867+THE LOCAL JURISDICTION POLITICAL SUBDIVISIO N BY CANNABIS ESTABLISHMENTS 7
2868+BUSINESSES LOCATED IN OTHER JURISDICTIONS POLITICAL SUBDIVISIO NS; 8
2869+
2870+ (4) PREVENT AN ENTITY WH OSE LICENSE MAY BE C ONVERTED UNDER 9
2871+§ 36–401(B)(1)(II) OF THIS SUBTITLE AND THAT IS IN COMPLIANC E WITH ALL 10
2872+RELEVANT MEDICAL CAN NABIS REGULATIONS FR OM BEING GRANTED THE LICENSE 11
2873+CONVERSION ; OR 12
2874+
2875+ (5) NEGOTIATE OR ENTER I NTO AN AGREEMENT WIT H A CANNABIS 13
2876+ESTABLISHMENT OR A C ANNABIS ESTABLISHMEN T APPLICANT LICENSEE OR AN 14
2877+APPLICANT FOR A CANN ABIS LICENSE REQUIRING THAT THE C ANNABIS 15
2878+ESTABLISHMENT LICENSEE OR APPLICANT PROVIDE MONEY, DONATIONS, 16
2879+IN–KIND CONTRIBUTIONS , SERVICES, OR ANYTHING OF VALUE TO THE LOCAL 17
2880+JURISDICTION POLITICAL SUBDIVISIO N. 18
2881+
2882+ (C) THE USE OF A FACILITY BY A CANNABIS LICENSEE IS NOT REQUIRED TO 19
2883+BE SUBMITTED TO , OR APPROVED BY , A COUNTY OR MUNICIPA L ZONING BOARD , 20
2884+AUTHORITY, OR UNIT IF IT THE FACILITY: 21
2885+
2886+ (1) WAS PROPERLY ZONED A ND OPERATING ON OR B EFORE JANUARY 22
2887+1, 2023; OR 23
2888+
2889+ (2) IS USED BY A GROWER, PROCESSOR, OR DISPENSARY THAT : 24
2890+
2891+ (I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE 25
2892+OCTOBER 1, 2022; AND 26
2893+
2894+ (II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022. 27
2895+
2896+ (D) A POLITICAL SUBDIVISIO N OR SPECIAL TAXING DISTRICT MAY NOT 28
2897+IMPOSE A TAX ON CANNABIS. 29
2898+
2899+36–406. 30
2900+ 64 HOUSE BILL 556
2901+
2902+
2903+ (A) THE DIVISION ADMINISTRATION MAY ISSUE INCUBATOR SPACE 1
2904+LICENSES AUTHORIZING AN A NONPROFIT ENTITY TO OPERATE A LICENSED 2
2905+PREMISES IN WHICH MI CRO LICENSEES MAY OP ERATE A CANNABIS BUS INESS. 3
2906+
2907+ (B) SUBJECT TO SUBSECTION (C) (D) OF THIS SECTION , THE MARYLAND 4
2908+ECONOMIC DEVELOPMENT CORPORATION , IN CONSULTATION WITH THE DIVISION 5
2909+ADMINISTRATION , SHALL ACQUIRE AND CO NSTRUCT OR REFURBISH AT LEAST ONE 6
2910+FACILITY TO OPERATE AN INCUBATOR SPACE . 7
2911+
2912+ (C) THE MARYLAND ECONOMIC DEVELOPMENT CORPORAT ION MAY ENTER 8
2913+INTO A MEMORANDUM OF UNDERSTANDING WITH A NONPROFIT ORGANIZATI ON TO 9
2914+OPERATE A FACILITY U NDER SUBSECTION (B) OF THIS SECTION IF T HE DIVISION 10
2915+AND THE CORPORATION PROVIDE O VERSIGHT OF THE FACI LITY. 11
2916+
2917+ (C) AFTER THE COMPLETION OF THE CONSTRUCTION OR REFURBISHMENT 12
2918+OF A FACILITY ACQUIR ED UNDER SUBSECTION (B) OF THIS SECTION, OWNERSHIP OF 13
2919+THE FACILITIES SHALL BE TRANSFERRED TO TH E DEPARTMENT OF GENERAL 14
2920+SERVICES. 15
2921+
2922+ (D) THE DEPARTMENT OF GENERAL SERVICES SHALL CONTRA CT WITH A 16
2923+NONPROFIT ORGANIZATI ON TO OPERATE A FACILITY U NDER SUBSECTION (B) OF 17
2924+THIS SECTION. 18
2925+
2926+ (D) (E) AN INCUBATOR SPACE LI CENSEE MAY PURCHASE EQUIPMENT TO 19
2927+BE USED BY OTHER INC UBATOR SPACE LICENSE ES IN THE SAME INCUB ATOR SPACE. 20
2928+
2929+ (D) (E) (F) THE DIVISION ADMINISTRATION SHALL ADOPT REGULAT IONS TO 21
2930+ESTABLISH A MARYLAND INCUBATOR PROGRAM BASED ON THE BEST PRACTICES IN 22
2931+OTHER STATES . 23
2932+
2933+36–407. 24
2934+
2935+ (A) (1) A PERSON SHALL OBTAIN AN ON–SITE CONSUMPTION LIC ENSE 25
2936+FROM THE ADMINISTRATION BEFORE OPERATING A PREMISES WHERE CANNABIS 26
2937+MAY BE CONSUMED . 27
2938+
2939+ (2) THE DIVISION ADMINISTRATION MAY ISSUE ON –SITE 28
2940+CONSUMPTION LICENSES AUTHORIZING AN ENTIT Y TO OPERATE A LICEN SED 29
2941+PREMISES IN WHICH CA NNABIS MAY BE CONSUMED , BUT NOT SMOKED INDOO RS, IN 30
2942+ACCORDANCE WITH THIS TITLE AND ANY REGULA TIONS ADOPTED UNDER THIS 31
2943+TITLE. 32
2944+
2945+ (2) (3) AN ON–SITE CONSUMPTION EST ABLISHMENT MAY OPERA TE 33
2946+ONLY IF THE COUNTY A ND, IF APPLICABLE , THE MUNICIPALITY , WHERE THE 34 HOUSE BILL 556 65
2947+
2948+
2949+BUSINESS IS LOCATED HAVE ISSUED A PERMIT OR LICENSE THAT EXPR ESSLY 1
2950+ALLOWS THE OPERATION OF THE ON–SITE CONSUMPTION EST ABLISHMENT . 2
2951+
2952+ (B) SUBJECT TO THE LIMITA TIONS IN § 36–405 OF THIS SUBTITLE , A 3
2953+COUNTY AND, IF APPLICABLE, A MUNICIPALITY MAY : 4
2954+
2955+ (1) PROHIBIT THE OPERATI ON OF ON –SITE CONSUMPTION 5
2956+ESTABLISHMENTS ; 6
2957+
2958+ (2) PROHIBIT OR RESTRICT THE SMOKING OR VAPIN G OF CANNABIS 7
2959+AT ON–SITE CONSUMPTION ESTABLIS HMENTS; OR 8
2960+
2961+ (3) ADOPT ZONING AND PLA NNING REQUIREMENTS F OR ON–SITE 9
2962+CONSUMPTION ESTABLIS HMENTS. 10
2963+
2964+ (C) (1) AN ON–SITE CONSUMPTION LIC ENSE AUTHORIZES AN E NTITY TO 11
2965+DISTRIBUTE CANNABIS OR CANNABIS PRODUCTS FOR ON–SITE CONSUMPTION . 12
2966+
2967+ (2) AN ON–SITE CONSUMPTION LIC ENSE DOES NOT AUTHOR IZE THE 13
2968+HOLDER OF THE LICENS E TO: 14
2969+
2970+ (I) CULTIVATE CANNABIS ; 15
2971+
2972+ (II) PROCESS CANNABIS OR CANNABIS–INFUSED PRODUCTS ; OR 16
2973+
2974+ (III) ADD CANNABIS TO FOOD PREPARED OR SERVED O N THE 17
2975+PREMISES. 18
2976+
2977+ (D) A FOOD SERVICE FACILITY, AS DEFINED IN § 21–301 OF THE HEALTH – 19
2978+GENERAL ARTICLE, MAY APPLY FOR A LICE NSE TO OPERATE AN ON –SITE 20
2979+CONSUMPTION ESTABLIS HMENT. 21
2980+
2981+ (E) THE DIVISION SHALL: 22
2982+
2983+ (D) A BUSINESS THAT HAS AV ERAGE DAILY RECEIPTS FROM THE SALE OF 23
2984+BAKERY GOODS THAT AR E AT LEAST 50% OF THE AVERAGE DAILY RECEIPTS OF THE 24
2985+BUSINESS MAY APPLY F OR A LICENSE TO OPER ATE AN ON–SITE CONSUMPTION 25
2986+ESTABLISHMENT . 26
2987+
2988+ (E) THE ADMINISTRATION SHALL : 27
2989+
2990+ (1) MAINTAIN A LIST OF A LL ON–SITE CONSUMPTION 28
2991+ESTABLISHMENTS IN TH E STATE; AND 29
2992+ 66 HOUSE BILL 556
2993+
2994+
2995+ (2) MAKE THE LIST AVAILABLE ON ITS WEBSITE. 1
2996+
2997+ (F) AN ON–SITE CONSUMPTION EST ABLISHMENT MAY NOT : 2
2998+
2999+ (1) ALLOW ON–DUTY EMPLOYEES OF TH E BUSINESS TO CONSUM E 3
3000+CANNABIS ON THE LICE NSED PREMISES ; 4
3001+
3002+ (2) DISTRIBUTE OR ALLOW THE DISTRIBUTION OF FREE SAMPLES OF 5
3003+CANNABIS ON THE LICENSED PREMI SES; 6
3004+
3005+ (3) ALLOW THE CONSUMPTIO N OF ALCOHOL ON THE LICENSED 7
3006+PREMISES; 8
3007+
3008+ (4) ALLOW THE SMOKING OR VAPING OF TOBACCO OR TOBACCO 9
3009+PRODUCTS ON THE LICE NSED PREMISES ; 10
3010+
3011+ (5) ALLOW AN ACTIVITY ON THE LICENSED PREMISE S THAT WOULD 11
3012+REQUIRE AN A DDITIONAL LICENSE UN DER THIS TITLE , INCLUDING GROWING , 12
3013+PROCESSING, OR DISPENSING ; 13
3014+
3015+ (6) ALLOW THE INDOOR SMO KING OF CANNABIS OR CANNABIS 14
3016+PRODUCTS ON THE LICE NSED PREMISES ; 15
3017+
3018+ (7) ALLOW THE USE OR CON SUMPTION OF CANNABIS BY A PATRON 16
3019+WHO DISPLAYS ANY VISIBLE SIGNS OF INT OXICATION; OR 17
3020+
3021+ (7) (8) ADMIT ONTO THE LICEN SED PREMISES AN INDI VIDUAL WHO 18
3022+IS UNDER THE AGE OF 21 YEARS. 19
3023+
3024+ (G) AN ON–SITE CONSUMPTION EST ABLISHMENT SHALL : 20
3025+
3026+ (1) REQUIRE ALL EMPLOYEE S TO SUCCESSFULLY CO MPLETE AN 21
3027+ANNUAL RESPONSIBLE VENDOR TRAINING PROG RAM AUTHORIZED UNDER THIS 22
3028+TITLE; AND 23
3029+
3030+ (2) ENSURE THAT THE DISP LAY AND CONSUMPTION OF CANNABIS OR 24
3031+CANNABIS PRODUCTS AR E NOT VISIBLE FROM O UTSIDE OF THE LICENS ED 25
3032+PREMISES. 26
3033+
3034+ (H) (1) AN ON–SITE CANNABIS ESTABL ISHMENT SHALL EDUCAT E 27
3035+CONSUMERS BY PROVIDING INF ORMATIONAL MATERIALS REGARDING THE SAFE 28
3036+CONSUMPTION OF CANNA BIS. 29
3037+ HOUSE BILL 556 67
3038+
3039+
3040+ (2) THE EDUCATIONAL MATER IALS PROVIDED UNDER PARAGRAPH 1
3041+(1) OF THIS SUBSECTION M UST BE BASED ON THE REQUIREMENTS ESTABLI SHED BY 2
3042+THE CANNABIS PUBLIC HEALTH ADVISORY COUNCIL ESTABLISHED UNDER § 3
3043+13–4502 OF THE HEALTH – GENERAL ARTICLE. 4
3044+
3045+ (I) THIS SECTION DOES NOT PROHIBIT A COUNTY OR MUNICIPALITY FROM 5
3046+ADOPTING ADDITIONAL REQUIREMENTS FOR EDU CATION ON THE SAFE 6
3047+CONSUMPTION OF CANNA BIS ON THE PREMISES OF A LICENSED ON –SITE 7
3048+CONSUMPTION ESTABLISHM ENT. 8
3049+
3050+ (J) A PERSON MAY HAVE AN O WNERSHIP INTEREST IN OR CONTROL OF , 9
3051+INCLUDING THE POWER TO MANAGE AND OPERAT E, TWO ON–SITE CONSUMPTION 10
3052+ESTABLISHMENTS LICEN SED UNDER THIS SECTI ON. 11
3053+
3054+36–408. 12
3055+
3056+ (A) (1) THE DIVISION ADMINISTRATION SHALL REGISTER AT LEAST ON E 13
3057+INDEPENDENT TESTING LABORATORY TO TEST C ANNABIS AND CANNABIS PRODUCTS 14
3058+THAT ARE TO BE SOLD IN THE STATE. 15
3059+
3060+ (2) THE DIVISION ADMINISTRATION SHALL HOLD MEDICAL A ND 16
3061+ADULT–USE CANNABIS TESTING TO THE SAME STANDARD S. 17
3062+
3063+ (B) TO BE REGISTERED AS AN INDEPENDENT TE STING LABORATORY , A 18
3064+LABORATORY MUST : 19
3065+
3066+ (1) MEET THE APPLICATION REQUIREMENTS ESTABLI SHED BY THE 20
3067+DIVISION ADMINISTRATION ; 21
3068+
3069+ (2) PAY AN APPLICATION F EE DETERMINED BY THE DIVISION 22
3070+ADMINISTRATION ; AND 23
3071+
3072+ (3) MEET THE STANDARDS A ND REQUIR EMENTS FOR 24
3073+ACCREDITATION , INSPECTION, AND TESTING ESTABLIS HED BY THE DIVISION 25
3074+ADMINISTRATION . 26
3075+
3076+ (C) (1) AN INDEPENDENT TESTIN G LABORATORY LICENSE IS VALID FOR 27
3077+2 YEARS ON INITIAL LIC ENSURE. 28
3078+
3079+ (2) AN INDEPENDENT TESTIN G LABORATORY LICENSE IS VALID FOR 29
3080+2 YEARS ON RENEWAL . 30
3081+ 68 HOUSE BILL 556
3082+
3083+
3084+ (D) A REGISTERED INDEPENDE NT TESTING LABORATOR Y IS AUTHORIZED 1
3085+TO TEST AND TRANSPOR T CANNABIS AND CANNA BIS PRODUCTS ON BEHA LF OF 2
3086+CANNABIS LICENSEES . 3
3087+
3088+ (E) (1) A LABORATORY AGENT OR AN EMPLOYEE OF AN IN DEPENDENT 4
3089+TESTING LABORATORY M AY NOT RECEIVE DIRECT OR IN DIRECT FINANCIAL 5
3090+COMPENSATION , OTHER THAN REASONABL E CONTRACTUAL FEES T O CONDUCT 6
3091+TESTING, FROM ANY ENTITY FOR WHICH IT IS CONDUCTI NG TESTING UNDER THI S 7
3092+TITLE. 8
3093+
3094+ (2) AN INDIVIDUAL WHO POS SESSES AN INTEREST I N OR IS A 9
3095+LABORATORY AGENT E MPLOYED BY AN INDEPE NDENT TESTING LABORA TORY, OR 10
3096+AN IMMEDIATE FAMILY MEMBER OF THE INDIVI DUAL, MAY NOT POSSESS AN 11
3097+INTEREST IN OR BE EM PLOYED BY A CANNABIS LICENSEE. 12
3098+
3099+ (F) CANNABIS AND CANNABIS PRODUCTS MAY NOT BE SOLD OR OTHERWISE 13
3100+MARKETED UNDER THIS TITLE IF THE CANNABIS OR C ANNABIS PRODUCT HAS NOT 14
3101+BEEN TESTED BY AN IN DEPENDENT TESTING LA BORATORY AND DETERMI NED TO 15
3102+MEET THE DIVISION’S ADMINISTRATION ’S TESTING PROTOCOLS . 16
3103+
3104+ (G) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS THAT 17
3105+ESTABLISH: 18
3106+
3107+ (1) THE STANDARDS AND REQUIR EMENTS TO BE MET BY AN 19
3108+INDEPENDENT TESTING LABORATORY TO OBTAIN A REGISTRATION ; 20
3109+
3110+ (2) THE STANDARDS OF CAR E TO BE FOLLOWED BY AN INDEPENDENT 21
3111+TESTING LABORATORY ; AND 22
3112+
3113+ (3) THE BASIS AND PROCES SES FOR DENIAL , REVOCATION , AND 23
3114+SUSPENSION OF A REGISTRATION OF AN INDEPENDENT TESTI NG LABORATORY . 24
3115+
3116+ (H) THE DIVISION ADMINISTRATION MAY INSPECT AN INDEP ENDENT 25
3117+TESTING LABORATORY R EGISTERED UNDER THIS SECTION TO ENSURE CO MPLIANCE 26
3118+WITH THIS TITLE AND ANY REGULATIONS ADOP TED UNDER THIS TITLE . 27
3119+
3120+ (I) (1) ANY REGISTRATION TO O PERATE AN INDEPENDEN T TESTING 28
3121+LABORATORY ISSUED BY THE NATALIE M. LAPRADE MEDICAL CANNABIS 29
3122+COMMISSION ON OR BEFO RE JULY 1, 2023, SHALL BE VALID UNDER THIS TITLE AND 30
3123+SHALL AUTHORIZE AN I NDEPENDENT TESTING L ABORATORY TO PERFORM TESTING 31
3124+ON MEDICAL AND ADULT –USE CANNABIS AND CAN NABIS PRODUCTS . 32
3125+ HOUSE BILL 556 69
3126+
3127+
3128+ (2) THE DIVISION ADMINISTRATION SHALL CONVERT ALL 1
3129+INDEPENDENT TESTING LABORATORY REGISTRAT IONS IN ACCORDANCE W ITH THIS 2
3130+SUBSECTION. 3
3131+
3132+36–409. 4
3133+
3134+ (A) THE FOLLOWING BUSINES SES SHALL REGISTER W ITH THE DIVISION 5
3135+ADMINISTRATION IN ORDER TO PROVIDE SERVICES TO A CANNAB IS LICENSEE: 6
3136+
3137+ (1) A TRANSPORTER ; 7
3138+
3139+ (2) A SECURITY GUARD AGE NCY; 8
3140+
3141+ (3) A WASTE DISPOSAL COM PANY; AND 9
3142+
3143+ (4) ANY OTHER TYPE OF CA NNABIS BUSINESS THAT IS AUTHORIZED 10
3144+BY THE DIVISION ADMINISTRATION TO PROVIDE PLANT OR PRODUCT–TOUCHING 11
3145+SERVICES TO CANNABIS LICENSEES. 12
3146+
3147+ (B) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS THAT 13
3148+ESTABLISH: 14
3149+
3150+ (1) THE STANDARDS AND RE QUIREMENTS TO BE MET BY AN ENTITY 15
3151+TO OBTAIN A REGISTRA TION UNDER THIS SUBT ITLE; AND 16
3152+
3153+ (2) THE BASIS AND PROCES SES FOR APPROVAL , DENIAL, 17
3154+REVOCATION , AND SUSPENSION OF TH E CANNABIS REGISTRAT ION. 18
3155+
3156+ (C) A REGISTRATION TO OPER ATE A TRANSPORTER , SECURITY GUARD 19
3157+AGENCY, OR WASTE DISPOSAL CO MPANY ISSUED BY THE DIVISION NATALIE M. 20
3158+LAPRADE MEDICAL CANNABIS COMMISSION ON OR BEFORE JULY 1, 2023, SHALL 21
3159+BE VALID UNDER THIS TITLE AND AUTHORIZE A TRANSPORTER , SECURITY GUARD 22
3160+AGENCY, OR WASTE DISPOSAL CO MPANY TO HANDLE MEDI CAL AND ADULT –USE 23
3161+CANNABIS AND CANNABI S PRODUCTS. 24
3162+
3163+36–410. 25
3164+
3165+ (A) BEGINNING JULY 1, 2023, A CANNABIS LICENSEE THAT IS OPERATING A 26
3166+DISPENSARY SHALL : 27
3167+
3168+ (1) ENSURE THAT IT HAS A DEQUATE SUPPLY FOR Q UALIFYING 28
3169+PATIENTS AND CAREGIV ERS; AND 29
3170+ 70 HOUSE BILL 556
3171+
3172+
3173+ (2) SET ASIDE OPERAT ING HOURS OR DEDICATED SERVICE LINES TO 1
3174+SERVE ONLY QUALIFYIN G PATIENTS AND CAREG IVERS; AND 2
3175+
3176+ (3) ENSURE THAT SHELF SPACE AT LEAST 25% OF CANNABIS AND 3
3177+CANNABIS PRODUCTS IN THE DISPENSARY IS AVAILABLE FOR CAN NABIS AND 4
3178+CANNABIS PRODUCTS ARE FROM SOCIAL EQUITY LICENSEES AND GROWERS AND 5
3179+PROCESSORS THAT DO N OT SHARE COMMON OWNE RSHIP WITH THE DISPE NSARY. 6
3180+
3181+ (B) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, A LICENSED 7
3182+DISPENSARY MAY NOT L OCATE WITHIN: 8
3183+
3184+ (1) 500 FEET OF: 9
3185+
3186+ (I) A PRE–EXISTING PRIMARY OR SECONDARY SCHOOL IN THE 10
3187+STATE, OR A LICENSED CHILD CARE CENTER OR REGIS TERED FAMILY CHILD C ARE 11
3188+HOME UNDER TITLE 9.5 OF THE EDUCATION ARTICLE; OR 12
3189+
3190+ (II) A PLAYGROUND , RECREATION CENTER , LIBRARY, OR PUBLIC 13
3191+PARK; OR 14
3192+
3193+ (2) 1,000 FEET OF ANOTHER DISP ENSARY UNDER THIS TITLE . 15
3194+
3195+ (C) A POLITICAL SUBDIVISIO N MAY ADOPT AN ORDIN ANCE REDUCING THE 16
3196+DISTANCE REQUIREMENT S UNDER SUBSECTION (B) OF THIS SECTION. 17
3197+
3198+ (D) THE DISTANCE REQUIREM ENTS UNDER SUBSECTIO N (B) OF THIS 18
3199+SECTION DO NOT APPLY TO A DISPENSARY LICE NSE THAT WAS: 19
3200+
3201+ (1) CONVERTED UNDER § 36–401(B)(1)(II) OF THIS SUBTITLE; AND 20
3202+
3203+ (2) PROPERLY ZONED AND O PERATING BEFORE JULY 1, 2023. 21
3204+
3205+SUBTITLE 5. AGENT, OWNER, AND LICENSE TRANSFER REQUIREMENTS . 22
3206+
3207+36–501. 23
3208+
3209+ (A) EACH A CANNABIS AGENT SHALL BE REGISTERED WITH T HE DIVISION 24
3210+ADMINISTRATION BEFORE THE AGENT MAY VOLUNTEER OR WORK FO R A CANNABIS 25
3211+LICENSEE OR CANNABIS REGISTRANT. 26
3212+
3213+ (B) A CANNABIS AGENT REGIS TRATION IS VALID FOR 2 YEARS. 27
3214+
3215+ (C) TO BE ELIGIBLE TO REGISTER AS A CANNABIS AGENT WITH THE 28
3216+DIVISION ADMINISTRATION , A CANNABIS AGENT AN INDIVIDUAL MUST: 29 HOUSE BILL 556 71
3217+
3218+
3219+
3220+ (1) BE AT LEAST 21 YEARS OLD; AND 1
3221+
3222+ (2) IF THE RECORDS ARE L EGALLY ACCESSIBLE , OBTAIN A STATE AND 2
3223+NATIONAL CRIMINAL HI STORY RECORDS CHECK IN ACCORDANCE WITH § 36–505 OF 3
3224+THIS SUBTITLE. 4
3225+
3226+ (D) THE DIVISION ADMINISTRATION MAY NOT REGISTER AS A CANNABIS 5
3227+AGENT AN INDIVIDUAL WHO: 6
3228+
3229+ (1) DOES NOT MEET THE CR ITERIA ESTABLISHED U NDER 7
3230+SUBSECTION (C) OF THIS SECTION; OR 8
3231+
3232+ (2) HAS BEEN CONVICTED O F OR PLEADED NOLO CO NTENDERE TO A 9
3233+CRIME INVOLVING MORA L TURPITUDE, WHETHER OR NOT ANY APPE AL OR OTHER 10
3234+PROCEEDING IS PENDIN G TO HAVE THE CONVIC TION OR PLEA SET ASI DE. 11
3235+
3236+ (E) THE DIVISION ADMINISTRATION MAY NOT DENY A CANNA BIS AGENT 12
3237+REGISTRATION BASED O N ANY CANNABIS –RELATED OFFENSES OCC URRING BEFORE 13
3238+JANUARY JULY 1, 2023. 14
3239+
3240+ (F) A CANNABIS LICENSEE SH ALL REQUIRE EACH REG ISTERED CANNABIS 15
3241+AGENT TO COMPLETE AN ANNUAL RESPONSIBLE V ENDOR TRAINING PROGR AM 16
3242+AUTHORIZED UNDER THI S TITLE. 17
3243+
3244+ (G) A REGISTRATION OF A CA NNABIS AGENT ISSUED BY THE NATALIE M. 18
3245+LAPRADE MEDICAL CANNABIS COMMISSION O N OR BEFORE JULY 1, 2023, SHALL: 19
3246+
3247+ (1) BE VALID UNDER THIS TITLE; AND 20
3248+
3249+ (2) AUTHORIZE THE CANNAB IS AGENT TO BE EMPLO YED BY OR 21
3250+VOLUNTEER WITH A LIC ENSED CANNABIS BUSIN ESS. 22
3251+
3252+36–502. 23
3253+
3254+ (A) AN INDIVIDUAL A PERSON WISHING TO HOLD AN O WNERSHIP INTEREST 24
3255+OF 5% OR GREATER IN , OR CONTROL OF , A CANNABIS LICENSEE SHALL SUBMIT TO 25
3256+THE DIVISION ADMINISTRATION : 26
3257+
3258+ (1) AN APPLICATION THAT INCLUDES THE NAME , ADDRESS, AND DATE 27
3259+OF BIRTH OF THE APPL ICANT; 28
3260+ 72 HOUSE BILL 556
3261+
3262+
3263+ (2) A STATEMENT SIGNED BY THE APPLICANT ASS ERTING THAT THE 1
3264+APPLICANT HAS NOT PR EVIOUSLY HAD A CANNA BIS LICENSE OR CANNA BIS 2
3265+REGISTRATION SUSPEND ED OR REVOKED ; 3
3266+
3267+ (3) A STATE AND NATIONAL CR IMINAL HISTORY RECOR DS CHECK IN 4
3268+ACCORDANCE WITH § 36–505 OF THIS SUBTITLE; 5
3269+
3270+ (4) ANY INFO RMATION REQUIRED BY THE DIVISION 6
3271+ADMINISTRATION TO COMPLETE AN INVES TIGATION INTO THE BA CKGROUND OF 7
3272+THE APPLICANT , INCLUDING FINANCIAL RECORDS AND OTHER IN FORMATION 8
3273+RELATING TO THE BUSI NESS AFFAIRS OF THE APPLICANT; AND 9
3274+
3275+ (5) AN APPLICATION FEE I N AN AMOUNT TO BE DE TERMINED BY THE 10
3276+DIVISION ADMINISTRATION IN ACCORDANCE WITH T HIS SUBTITLE. 11
3277+
3278+ (B) THE DIVISION ADMINISTRATION MAY DENY AN APPLICAT ION IF: 12
3279+
3280+ (1) THE APPLICANT : 13
3281+
3282+ (I) FAILS TO SUBMIT THE INFORMATION REQUIRED UNDER 14
3283+SUBSECTION (A) OF THIS SECTION; OR 15
3284+
3285+ (II) HAS BEEN CONVICTED O F OR PLEADED NOLO CO NTENDERE 16
3286+TO A CRIME INVOLVING MORAL TURPITUDE , WHETHER OR NOT ANY A PPEAL OR 17
3287+OTHER PROCEEDING IS PENDING TO HAVE THE CONVICTION OR PLEA S ET ASIDE; OR 18
3288+
3289+ (2) THE DIVISION ADMINISTRATION FINDS A SUBSTANTIAL REASON 19
3290+TO DENY THE REGISTRA TION. 20
3291+
3292+36–503. 21
3293+
3294+ (A) A CANNABIS LICENSE GRA NTED UNDER THIS TITL E IS NOT 22
3295+TRANSFERABLE EXCEPT AS PROVIDED IN THIS SECTION. 23
3296+
3297+ (B) TO TRANSFER OWNERSHIP OR CONTROL OF A LICE NSE ISSUED UNDER 24
3298+THIS TITLE, A LICENSEE: 25
3299+
3300+ (1) SHALL SUBMIT TO THE DIVISION ADMINISTRATION : 26
3301+
3302+ (I) AN APPLICATION FEE I N AN AMOUNT TO BE DE TERMINED BY 27
3303+THE DIVISION ADMINISTRATION IN ACCORDANCE WITH T HIS SUBTITLE; AND 28
3304+
3305+ (II) AN APPLICATION DEVEL OPED BY THE DIVISION 29
3306+ADMINISTRATION ; AND 30 HOUSE BILL 556 73
3307+
3308+
3309+
3310+ (2) MUST MEET THE REQUIR EMENTS FOR TRANSFER OF OWNERSHIP 1
3311+OR CONTROL ESTABLISH ED BY THE DIVISION ADMINISTRATION UNDER THIS TITLE . 2
3312+
3313+ (C) (1) A CANNABIS LICENSEE , INCLUDING A CANNABIS LICENSEE WHOSE 3
3314+LICENSE WAS CONVERTE D IN ACCORDANCE WITH § 36–401 OF THIS TITLE, MAY NOT 4
3315+TRANSFER OWNERSHIP O R CONTROL OF THE LIC ENSE FOR A PERIOD OF AT LEAST 5 5
3316+YEARS FOLLOWING LICE NSURE. 6
3317+
3318+ (2) THE 5–YEAR PERIOD SPECIFIE D IN PARAGRAPH (1) OF THIS 7
3319+SUBSECTION DOES NOT INCLUDE THE TIME PER IOD THAT A BUSINESS IS 8
3320+CONSIDERED BY THE DIVISION ADMINISTRATION TO BE IN A PREAPPROV ED 9
3321+LICENSURE STATUS . 10
3322+
3323+ (3) THE LIMITATIONS UNDER THIS SUBSECTION DO N OT APPLY TO 11
3324+TRANSFERS AS A RESUL T OF THE DISABILITY, INCAPACITY, OR DEATH OF THE 12
3325+OWNER OF A CANNABIS LICENSE, THE BANKRUPTCY OR RECEIVERSHIP IN 13
3326+ACCORDANCE WITH A LE NDING AGREEMENT OF A CANNABIS LICENS EE, OR COURT 14
3327+ORDER. 15
3328+
3329+ (4) THE LIMITATIONS UNDER THIS SUBSECTION DO NOT APPLY TO A 16
3330+TRANSFER OF OWNERSHI P THAT IS THE SUBJEC T OF A LEGALLY BINDI NG 17
3331+SETTLEMENT AGREEMENT RESULTING FROM LITIG ATION COMMENCED ON O R 18
3332+BEFORE JANUARY 1, 2023. 19
3333+
3334+36–504. 20
3335+
3336+ (A) (1) IN THIS SECTION, “OWNER” INCLUDES ANY TYPE OF OWNER OR 21
3337+BENEFICIARY OF A BUSINESS ENTITY , INCLUDING A PRINCIPA L OFFICER, A 22
3338+DIRECTOR, A PRINCIPAL EMPLOYEE , A PARTNER, AN INVESTOR, A STOCKHOLDER , 23
3339+OR A BENEFICIAL OWNE R OF THE BUSINESS EN TITY AND, NOTWITHSTANDING ANY 24
3340+OTHER PROVISION OF T HIS SUBTITLE, A PERSON HAVING ANY OWNERSHIP 25
3341+INTEREST REGARDLESS OF THE PERCENTAGE OF OWNERSHIP INTEREST . 26
3342+
3343+ (2) “OWNER” DOES NOT INCLUDE A S TOCKHOLDER . 27
3344+
3345+ (B) THE PROVISIONS IN THI S SECTION ARE IN ADD ITION TO THE CONFLIC T 28
3346+OF INTEREST PROVISIO NS IN TITLE 5 OF THE GENERAL PROVISIONS ARTICLE. 29
3347+
3348+ (C) EXCEPT AS PROVIDED IN SUBSECTION (C) (D) OF THIS SECTION , A 30
3349+CONSTITUTIONAL OFFIC ER OR A SECRETARY OF A PRINCIPAL DEPARTME NT OF THE 31
3350+EXECUTIVE BRANCH OF THE STATE GOVERNMENT MAY NOT: 32
3351+ 74 HOUSE BILL 556
3352+
3353+
3354+ (1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT 1
3355+HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR 2
3356+
3357+ (2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT 3
3358+HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE. 4
3359+
3360+ (C) (D) A SUBJECT TO THE PROVISIONS OF TITLE 5 OF THE GENERAL 5
3361+PROVISIONS ARTICLE, A CONSTITUTIONAL OFFIC ER OR A SECRETARY OF A 6
3362+PRINCIPAL DEPARTMENT OF THE EXECUTIVE BRANCH OF THE STATE GOVERNMENT 7
3363+MAY REMAIN AN OWNER OR AN EMPLOYEE OF A BUSINESS ENTITY THAT HOLDS A 8
3364+LICENSE UNDER THIS TITLE IF THE CONS TITUTIONAL OFFICER O R SECRETARY WAS 9
3365+AN OWNER OR EMPLOYEE OF THE BUSINESS ENTI TY BEFORE THE CONSTI TUTIONAL 10
3366+OFFICER’S ELECTION OR APPOIN TMENT OR THE SECRETA RY’S APPOINTMENT . 11
3367+
3368+ (D) (E) A MEMBER OF THE GENERAL ASSEMBLY MAY NOT : 12
3369+
3370+ (1) BE AN OWNER OR AN EMPLO YEE OF A BUSINESS EN TITY THAT 13
3371+HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR 14
3372+
3373+ (2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT 15
3374+HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE. 16
3375+
3376+ (E) (F) A FORMER MEMBER OF THE GENERAL ASSEMBLY, FOR THE 17
3377+1–YEAR PERIOD IMMEDIAT ELY AFTER THE MEMBER LEAVES OFFICE, MAY NOT: 18
3378+
3379+ (1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT 19
3380+HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR 20
3381+
3382+ (2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT 21
3383+HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE. 22
3384+
3385+ (F) (G) AN EMPLOYEE OF THE DIVISION ADMINISTRATION MAY NOT: 23
3386+
3387+ (1) HAVE A DIRECT OR IND IRECT FINANCIAL , OWNERSHIP, OR 24
3388+MANAGEMENT INTEREST , INCLUDING OWNERSHIP OF ANY STOCKS , BONDS, OR 25
3389+OTHER SIMILAR FINANCIAL IN STRUMENTS , IN ANY CANNABIS LICE NSEE; 26
3390+
3391+ (2) HAVE AN OFFICIAL REL ATIONSHIP WITH A PER SON WHO HOLDS A 27
3392+LICENSE OR REGISTRAT ION UNDER THIS TITLE ; 28
3393+
3394+ (3) BE AN ELECTED OFFICI AL OF STATE OR LOCAL GOVERN MENT; 29
3395+
3396+ (4) RECEIVE OR SHARE IN , DIRECTLY OR INDIRECTLY , THE RECEIPTS 30
3397+OR PROCEEDS OF A CAN NABIS LICENSEE; OR 31 HOUSE BILL 556 75
3398+
3399+
3400+
3401+ (5) HAVE A BENEFICIAL IN TEREST IN A CONTRACT FOR THE 1
3402+MANUFACTURE OR SALE OF CANNABIS OR THE P ROVISION OF INDEPEND ENT 2
3403+CONSULTING SERVICES IN CONNECTION WITH A CANNABIS LICENSE . 3
3404+
3405+36–505. 4
3406+
3407+ (A) IN THIS SECTION , “CENTRAL REPOSITORY” MEANS THE CRIMINAL 5
3408+JUSTICE INFORMATION SYSTEM CENTRAL REPOSITORY IN THE DEPARTMENT OF 6
3409+PUBLIC SAFETY AND CORRECTIONAL SERVICES. 7
3410+
3411+ (B) AS PART OF AN APPLICA TION TO THE CENTRAL REPOSITORY FOR A 8
3412+STATE AND NATIONAL CRIMINAL HIS TORY RECORDS CHECK , AN APPLICANT SHALL 9
3413+SUBMIT TO THE CENTRAL REPOSITORY: 10
3414+
3415+ (1) TWO COMPLETE SETS OF LEGIBLE FINGERPRINTS TAKEN ON 11
3416+FORMS APPROVED BY TH E DIRECTOR OF THE CENTRAL REPOSITORY AND THE 12
3417+DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION; 13
3418+
3419+ (2) THE FEE AUTHORIZED U NDER § 10–221(B)(7) OF THE CRIMINAL 14
3420+PROCEDURE ARTICLE FOR ACCESS TO STATE CRIMINAL HISTOR Y RECORDS; AND 15
3421+
3422+ (3) THE PROCESSING FEE R EQUIRED BY THE FEDERAL BUREAU OF 16
3423+INVESTIGATION FOR A N ATIONAL CRIMINAL HIS TORY RECORDS CHECK. 17
3424+
3425+ (C) IN ACCORDANCE WITH §§ 10–201 THROUGH 10–228 OF THE CRIMINAL 18
3426+PROCEDURE ARTICLE, THE CENTRAL REPOSITORY SHALL FORW ARD TO THE 19
3427+DIVISION ADMINISTRATION AND TO THE APPLICANT THE APPLICANT ’S CRIMINAL 20
3428+HISTORY RECORD INFOR MATION. 21
3429+
3430+ (D) IF AN APPLICANT HAS MADE TWO OR M ORE UNSUCCESSFUL ATT EMPTS 22
3431+AT SECURING LEGIBLE FINGERPRINTS , THE DIVISION ADMINISTRATION MAY 23
3432+ACCEPT AN ALTERNATE METHOD OF A CRIMINAL HISTORY RECORDS CHEC K AS 24
3433+PERMITTED BY THE DIRECTOR OF THE CENTRAL REPOSITORY AND THE DIRECTOR 25
3434+OF THE FEDERAL BUREAU OF INVESTIGATION . 26
3435+
3436+ (E) INFORMATION OBTAINED FROM THE CENTRAL REPOSITORY UNDER 27
3437+THIS SECTION SHALL B E: 28
3438+
3439+ (1) CONFIDENTIAL AND MAY NOT BE REDISSEMINATE D; AND 29
3440+
3441+ (2) USED ONLY FOR THE PU RPOSE OF REGISTRATIO N UNDER THIS 30
3442+TITLE. 31
3443+ 76 HOUSE BILL 556
3444+
3445+
3446+ (F) THE SUBJECT OF A CRIMINAL HISTOR Y RECORDS CHECK UNDE R THIS 1
3447+SECTION MAY CONTEST THE CRIMINAL HISTORY RECORD INFORMATION 2
3448+DISSEMINATED BY THE CENTRAL REPOSITORY, AS PROVIDED IN § 10–223 OF THE 3
3449+CRIMINAL PROCEDURE ARTICLE. 4
3450+
3451+SUBTITLE 6. MEDICAL CANNABIS COMPASSIONATE USE FUND AND PROGRAM. 5
3452+
3453+36–601. 6
3454+
3455+ (A) IN THIS SECTION , “FUND” MEANS THE MEDICAL CANNABIS 7
3456+COMPASSIONATE USE FUND. 8
3457+
3458+ (B) THERE IS A MEDICAL CANNABIS COMPASSIONATE USE FUND. 9
3459+
3460+ (B) (C) (1) THE DIVISION ADMINISTRATION SHALL: 10
3461+
3462+ (I) ADMINISTER THE COMPASSIONATE USE FUND; AND 11
3463+
3464+ (II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , 12
3465+ESTABLISH FEES IN AN AMOUNT NECESSARY TO PROVIDE REVENUES FOR THE 13
3466+PURPOSES OF THE COMPASSIONATE USE FUND. 14
3467+
3468+ (2) THE DIVISION ADMINISTRATION MAY NOT IMPOSE THE F EES 15
3469+ESTABLISHED UNDER PA RAGRAPH (1)(II) OF THIS SUBSECTION O N A LICENSED 16
3470+MEDICAL CANNABIS GRO WER, PROCESSOR, OR DISPENSARY DURING THE 2–YEAR 17
3471+PERIOD IMMEDIATELY F OLLOWING THE ISSUANC E OF A LICENSE BEFORE THE 18
3472+GROWER, PROCESSOR, OR DISPENSARY IS AN OPERATIONAL CANNABIS LICENSEE 19
3473+UNDER THIS TITLE. 20
3474+
3475+ (C) (D) THE PURPOSE OF THE COMPASSIONATE USE FUND IS TO 21
3476+PROVIDE ACCESS TO CA NNABIS FOR INDIVIDUA LS ENROLLED IN THE MARYLAND 22
3477+MEDICAL ASSISTANCE PROGRAM OR IN THE VETERANS AFFAIRS MARYLAND 23
3478+HEALTH CARE SYSTEM, INCLUDING ACCESS TO , AT A REDUCED COST : 24
3479+
3480+ (1) AN ASSESSMENT OF THE PATIENT’S MEDICAL HISTORY AN D 25
3481+CURRENT MEDICAL COND ITION; AND 26
3482+
3483+ (2) MEDICAL CANNABIS FRO M A LICENSED DISPENS ARY. 27
3484+
3485+ (D) (E) (1) THE COMPASSIONATE USE FUND IS A SPECIAL , 28
3486+NONLAPSING FUND THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND 29
3487+PROCUREMENT ARTICLE. 30
3488+ HOUSE BILL 556 77
3489+
3490+
3491+ (2) THE STATE TREASURER SHALL HOLD THE COMPASSIONATE USE 1
3492+FUND SEPARATELY , AND THE COMPTROLLER SHALL ACC OUNT FOR THE 2
3493+COMPASSIONATE USE FUND. 3
3494+
3495+ (3) THE COMPASSIONATE USE FUND SHALL BE INVESTE D AND 4
3496+REINVESTED IN THE SA ME MANNER AS OTHER STATE FUNDS, AND ANY INVESTMENT 5
3497+EARNINGS SHALL BE RE TAINED TO THE CREDIT OF THE COMPASSIONATE USE 6
3498+FUND. 7
3499+
3500+ (F) THE FUND CONSISTS OF : 8
3501+
3502+ (1) FEES ESTABLISHED UND ER SUBSECTION (C)(1)(II) OF THIS 9
3503+SECTION; 10
3504+
3505+ (2) FINES ASSESSED BY TH E DIVISION ADMINISTRATION UNDER THIS 11
3506+TITLE; 12
3507+
3508+ (3) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 13
3509+
3510+ (4) INTEREST EARNINGS ; AND 14
3511+
3512+ (5) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 15
3513+THE BENEFIT OF THE FUND. 16
3514+
3515+ (G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 17
3516+IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 18
3517+
3518+ (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 19
3519+THE FUND. 20
3520+
3521+ (4) (H) THE COMPASSIONATE USE FUND SHALL BE SUBJECT TO AN 21
3522+AUDIT BY THE OFFICE OF LEGISLATIVE AUDITS AS PROVID ED FOR IN § 2–1220 OF 22
3523+THE STATE GOVERNMENT ARTICLE. 23
3524+
3525+ (5) (I) THE COMPTROLLER SHALL PAY OUT MONEY FROM THE 24
3526+COMPASSIONATE USE FUND AS DIRECTED BY T HE DIVISION ADMINISTRATION . 25
3527+
3528+ (E) (J) NO PART OF THE COMPASSIONATE USE FUND MAY REVERT OR BE 26
3529+CREDITED TO: 27
3530+
3531+ (1) THE GENERAL FUND OF THE STATE; OR 28
3532+
3533+ (2) ANY OTHER SPECIAL FU ND OF THE STATE. 29
3534+ 78 HOUSE BILL 556
3535+
3536+
3537+ (F) (K) EXPENDITURES FROM THE COMPASSIONATE USE FUND MAY BE 1
3538+MADE ONLY IN ACCORDA NCE WITH THE STATE BUDGET . 2
3539+
3540+ (G) (L) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS TO 3
3541+CARRY OUT THIS SECTI ON. 4
3542+
3543+SUBTITLE 7. CANNABIS RESEARCH AND DEVELOPMENT . 5
3544+
3545+36–701. 6
3546+
3547+ (A) (1) AN INSTITUTION OF HIG HER EDUCATION , A RELATED MEDICAL 7
3548+FACILITY, OR AN AFFILIATED BIO MEDICAL RESEARCH FIR M MAY REGISTER WITH 8
3549+THE DIVISION ADMINISTRATION TO PURCHASE CANNABIS FOR THE PURPOSE OF 9
3550+CONDUCTING A BONA FIDE RESEARCH PROJEC T RELATING TO THE US ES, 10
3551+PROPERTIES, OR COMPOSITION OF CA NNABIS. 11
3552+
3553+ (2) A REGISTRATION FILED U NDER PARAGRAPH (1) OF THIS 12
3554+SUBSECTION SHALL INC LUDE: 13
3555+
3556+ (I) THE NAME OF THE PRIMARY RESEA RCHER; 14
3557+
3558+ (II) THE EXPECTED DURATIO N OF THE RESEARCH PR OJECT; 15
3559+AND 16
3560+
3561+ (III) THE PRIMARY OBJECTIV ES OF THE RESEARCH P ROJECT. 17
3562+
3563+ (3) A REGISTRATION FILED U NDER PARAGRAPH (1) OF THIS 18
3564+SUBSECTION SHALL REM AIN VALID UNTIL THER E IS A CHANGE IN THE RESEARCH 19
3565+PROJECT OR A WITHDRA WAL OF THE REGISTRAT ION. 20
3566+
3567+ (B) AN ACADEMIC RESEARCH REPRESENTATIVE MAY P URCHASE CANNABIS 21
3568+FROM A LICENSED DISP ENSARY OR A SUPPLIER OF CAN NABIS THAT IS LICENS ED BY 22
3569+ANY FEDERAL AGENCY T O SUPPLY CANNABIS TO RESEARCHERS . 23
3570+
3571+ (C) AN ACADEMIC RESEARCH REPRESENTATIVE MAY N OT BE PENALIZED OR 24
3572+ARRESTED UNDER STATE LAW FOR ACQUIRI NG, POSSESSING, OR DISPENSING 25
3573+CANNABIS, PRODUCTS CONTAINING CANNABIS, RELATED SUPPLIES , OR 26
3574+EDUCATIONAL MATERIAL S FOR USE IN A BONA FIDE RESEARCH PROJEC T RELATING 27
3575+TO THE USES, PROPERTIES, OR COMPOSITION OF CA NNABIS. 28
3576+
3577+ (D) THE DIVISION ADMINISTRATION MAY ADOPT REGULATION S TO 29
3578+IMPLEMENT THIS SECTI ON. 30
3579+
3580+36–702. 31 HOUSE BILL 556 79
3581+
3582+
3583+
3584+ (A) THE DIVISION ADMINISTRATION MAY REGISTER AN ENTI TY TO GROW, 1
3585+PROCESS, TEST, AND TRANSFER CANNABI S FOR THE PURPOSES O F RESEARCH AND 2
3586+DEVELOPMENT AS PROVI DED IN SUBSECTION (B) OF THIS SECTION. 3
3587+
3588+ (B) A REGISTRATION ISSUED UNDER SUBSECTION (A) OF THIS SECTION 4
3589+AUTHORIZES THE REGIS TRANT ONLY TO: 5
3590+
3591+ (1) TEST CHEMICAL POTENC Y AND COMPOSITION LE VELS; 6
3592+
3593+ (2) CONDUCT CLINICAL INV ESTIGATIONS OF CANNA BIS–DERIVED 7
3594+MEDICINAL PRODUCTS ; 8
3595+
3596+ (3) CONDUCT RESEARCH ON THE EFFICACY AND SAF ETY OF 9
3597+ADMINISTERING CANNAB IS AS PART OF MEDICA L TREATMENT ; 10
3598+
3599+ (4) CONDUCT GENOMIC , HORTICULTURAL , OR AGRICULTURAL 11
3600+RESEARCH; AND 12
3601+
3602+ (5) CONDUCT RESEARCH ON CANNABIS–AFFILIATED PRODUCTS OR 13
3603+SYSTEMS. 14
3604+
3605+ (C) TO OBTAIN A RESEARCH AND DEVELOPMENT REGI STRATION, AN 15
3606+APPLICANT SHALL SUBM IT TO THE DIVISION ADMINISTRATION : 16
3607+
3608+ (1) AN APPLICATION FEE IN AN AM OUNT TO BE DETERMINE D BY THE 17
3609+DIVISION ADMINISTRATION ; AND 18
3610+
3611+ (2) AN APPLICATION DEVEL OPED BY THE DIVISION 19
3612+ADMINISTRATION . 20
3613+
3614+ (D) AN APPLICANT FOR A RE SEARCH AND DEVELOPME NT REGISTRATION 21
3615+MUST MEET THE REGIST RATION STANDARDS AND REQUIREMENTS ESTABLI SHED BY 22
3616+THE DIVISION ADMINISTRATION . 23
3617+
3618+ (E) (1) A RESEARCH AND DEVELOP MENT REGISTRATION IS VALID FOR AN 24
3619+INITIAL TERM OF 2 YEARS. 25
3620+
3621+ (2) A RESEARCH AND DEVELOP MENT REGISTRATION IS VALID FOR 2 26
3622+YEARS ON RENEWAL . 27
3623+
3624+ (F) A RESEARCH AND DEVELOP MENT REGISTRANT MAY TRANSFER, BY SALE 28
3625+OR DONATION , CANNABIS GROWN WITHI N ITS OPERATION ONLY TO OTHER 29
3626+RESEARCH AND DEVELOP MENT REGISTRANTS . 30 80 HOUSE BILL 556
3627+
3628+
3629+
3630+ (G) A RESEARCH AND DEVELOPMENT R EGISTRANT MAY CONTRA CT TO 1
3631+PERFORM RESEARCH IN CONJUNCTION WITH A P UBLIC HIGHER EDUCATI ON 2
3632+RESEARCH INSTITUTION OR ANOTHER RESEARCH AND DEVELOPMENT REGI STRANT. 3
3633+
3634+SUBTITLE 8. REPORTS. 4
3635+
3636+36–801. 5
3637+
3638+ (A) ON OR BEFORE JUNE 30 EACH YEAR, EACH ENTI TY LICENSED OR 6
3639+REGISTERED UNDER THI S TITLE CANNABIS LICENSEE AN D CANNABIS REGISTRAN T 7
3640+SHALL REPORT TO THE DIVISION ON: 8
3641+
3642+ (A) ON OR BEFORE AUGUST 1 EACH YEAR, EACH CANNABIS LICENS EE AND 9
3643+CANNABIS REGISTRANT SHALL REPORT TO THE ADMINISTRATION INFORM ATION 10
3644+DETERMINED BY THE ADMINISTRATION TO BE NECESSARY TO CONTINU E TO ASSESS 11
3645+THE NEED FOR REMEDIA L MEASURES IN THE CA NNABIS INDUSTRY AND MARKET, 12
3646+INCLUDING: 13
3647+
3648+ (1) THE NUMBER OF MINORI TY AND WOMEN OWNERS OF THE 14
3649+CANNABIS LICENSEE OR CANNABIS REGISTRANT ; 15
3650+
3651+ (2) THE OWNERSHIP INTEREST O F ANY MINORITY AND W OMEN 16
3652+OWNERS OF THE CANNAB IS LICENSEE OR CANNA BIS REGISTRANT ; AND 17
3653+
3654+ (3) THE NUMBER OF MINORI TY AND WOMEN EMPLOYE ES OF THE 18
3655+CANNABIS LICENSEE OR CANNABIS REGISTRANT ; 19
3656+
3657+ (4) A LIST OF THE CANNAB IS LICENSEE’S OR CANNABIS REGISTRANT ’S 20
3658+EXPENDITURES FOR THE PRIOR STATE FISCAL YEAR ; AND 21
3659+
3660+ (5) FOR EACH EXPENDITURE : 22
3661+
3662+ (I) A DESCRIPTION OF THE WORK PERFORMED ; 23
3663+
3664+ (II) THE DOLLAR VALUE OF THE EXPENDITURE ; 24
3665+
3666+ (III) WHETHER THE WORK WAS PERFORMED BY THE CAN NABIS 25
3667+LICENSEE OR CANNABIS REGISTRANT OR A CONT RACTOR OR SUBCONTRAC TOR; AND 26
3668+
3669+ (IV) IF THE WORK WAS PERF ORMED BY A CONTRACTO R OR 27
3670+SUBCONTRACTOR , THE NAME OF THE ENTI TY THAT PERFORMED TH E WORK. 28
3671+ HOUSE BILL 556 81
3672+
3673+
3674+ (B) ALL DATA PROVIDED BY A CANNABIS LICENSEE OR CANNABIS 1
3675+REGISTRANT UNDER SUBSECTION (A)(4) AND (5) OF THIS SECTION: 2
3676+
3677+ (1) SHALL CONSTITUTE CON FIDENTIAL COMMERCIAL AND FINANCIAL 3
3678+INFORMATION AND BE T REATED AS CONFIDENTI AL BY THE ADMINISTRATION AND 4
3679+THE STATE; AND 5
3680+
3681+ (2) MAY BE USED ONLY FOR THE PURPOSES AUTHORI ZED UNDER TH IS 6
3682+SECTION AND MAY ONLY BE DISCLOSED TO THE PUBLIC IN AN ANONYMI ZED OR 7
3683+AGGREGATED FORMAT . 8
3684+
3685+ (C) ON OR BEFORE AUGUST 15 EACH YEAR, THE ADMINISTRATION SHALL 9
3686+PROVIDE THE DATA COL LECTED UNDER SUBSECT ION (A) OF THIS SECTION TO T HE 10
3687+CERTIFICATION AGENCY DESIGNATE D BY THE BOARD OF PUBLIC WORKS UNDER § 11
3688+14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 12
3689+
3690+ (B) (D) ON OR BEFORE JANUARY 1 EACH YEAR , THE DIVISION 13
3691+ADMINISTRATION SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE 14
3692+WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE INFORMATION 15
3693+REPORTED UNDER SUBSE CTION (A) (A)(1) THROUGH (3) OF THIS SECTION. 16
3694+
3695+36–802. 17
3696+
3697+ ON OR BEFORE JANUARY 1 EACH ODD–NUMBERED YEAR, THE DIVISION 18
3698+ADMINISTRATION SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE 19
3699+WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON: 20
3700+
3701+ (1) THE AMOUNT OF CANNAB IS CULTIVATED , PROCESSED, AND 21
3702+DISPENSED BY STANDAR D AND MICRO LICENSEE S; AND 22
3703+
3704+ (2) WHETHER THE SUPPLY O F CANNABIS IS ADEQUATE TO MEET THE 23
3705+DEMAND FOR CANNABIS AND CANNABIS PRODUCT S. 24
3706+
3707+36–803. 25
3708+
3709+ THE DIVISION ADMINISTRATION SHALL PUBLISH THE FO LLOWING DATA , 26
3710+ORGANIZED BY MONTH , ON A ROLLING BASIS A ND ON A PUBLICLY ACC ESSIBLE PART 27
3711+OF THE COMMISSION’S ADMINISTRATION ’S WEBSITE: 28
3712+
3713+ (1) THE NUMBER OF PATIEN TS, CAREGIVERS, AND PROVIDERS 29
3714+CERTIFIED UNDER THIS TITLE; 30
3715+
3716+ (2) THE WHOLESALE AND RE TAIL SALES OF MEDICA L AND ADULT–USE 31
3717+CANNABIS, MEASURED BY REVENUE AND VOLUME ; AND 32 82 HOUSE BILL 556
3718+
3719+
3720+
3721+ (3) THE MEDIAN CONSUMER PRICE FOR CANNABIS A ND CANNABIS 1
3722+PRODUCTS. 2
3723+
3724+SUBTITLE 9. ADVERTISING. 3
3725+
3726+36–901. 4
3727+
3728+ (A) IN THIS SUBTITLE , “ADVERTISEMENT ” MEANS THE PUBLICATIO N, 5
3729+DISSEMINATION , OR CIRCULATION OF AN Y AUDITORY, VISUAL, DIGITAL, ORAL, OR 6
3730+WRITTEN MATTER WHICH IS DIRECTLY OR INDIR ECTLY CALCULATED TO INDUCE THE 7
3731+SALE OF CANNABIS OR ANY CANNABIS–RELATED PRODUCT OR S ERVICE. 8
3732+
3733+ (B) “ADVERTISEMENT ” DOES NOT INCLUDE PAC KAGING OR LABELING . 9
3734+
3735+36–902. 10
3736+
3737+ (A) ADVERTISEMENTS AN ADVERTISEMENT FOR MEDICAL CANNABIS AND 11
3738+MEDICAL CANNABIS PRODUCTS OR MEDICAL CANNABIS –RELATED SERVICES THA T 12
3739+MAKE MAKES THERAPEUTIC OR MEDIC AL CLAIMS SHALL : 13
3740+
3741+ (1) BE SUPPORTED BY SUBSTANTIAL CLINICAL EVIDENCE OR 14
3742+SUBSTANTIAL CLINICAL DATA COMPETENT AND RELIAB LE SCIENTIFIC EVIDEN CE; 15
3743+AND 16
3744+
3745+ (2) INCLUDE INFORMATION ON THE M OST SIGNIFICANT SERIOUS AND 17
3746+MOST COMMON SIDE EFFECTS OR RISK S ASSOCIATED WITH TH E USE OF CANNABIS . 18
3747+
3748+ (B) ADVERTISEMENTS AN ADVERTISEMENT FOR MEDICAL CANNABIS OR 19
3749+MEDICAL CANNABIS PRO DUCTS SHALL INCLUDE A STATEMENT THAT THE PRODUCT 20
3750+IS FOR USE ONLY BY A QUALIFYING PATIENT . 21
3751+
3752+36–902. 36–903. 22
3753+
3754+ (A) (1) THIS SUBSECTION DOES NOT APPLY TO AN ADVE RTISEMENT 23
3755+PLACED ON PROPERTY O WNED OR LEASED BY A DISPENSARY, GROWER, OR 24
3756+PROCESSOR. 25
3757+
3758+ (2) AN ADVERTISEMENT FOR A CANNABIS LICENSEE , CANNABIS 26
3759+PRODUCT, OR CANNABIS–RELATED SERVICE MAY NOT: 27
3760+
3761+ (1) MAKE A STATEMENT THA T IS FALSE OR MISLEA DING IN A 28
3762+MATERIAL WAY OR IS O THERWISE A VIOLATION OF TITLE 13, SUBTITLE 3 OF THE 29
3763+COMMERCIAL LAW ARTICLE; 30 HOUSE BILL 556 83
3764+
3765+
3766+
3767+ (I) VIOLATE TITLE 13, SUBTITLE 3 OF THE COMMERCIAL LAW 1
3768+ARTICLE; 2
3769+
3770+ (II) DIRECTLY OR INDIRECT LY TARGET INDIVIDUAL S UNDER 3
3771+THE AGE OF 21 YEARS; 4
3772+
3773+ (2) (III) CONTAIN A DESIGN , AN ILLUSTRATION , A PICTURE, OR A 5
3774+REPRESENTATION THAT : 6
3775+
3776+ (I) 1. TARGETS OR IS ATTRAC TIVE TO MINORS , INCLUDING 7
3777+A CARTOON CHARACTER , A MASCOT, OR ANY OTHER DEPICTI ON THAT IS COMMONLY 8
3778+USED TO MARKET PRODU CTS TO MINORS; 9
3779+
3780+ (II) 2. DISPLAYS THE USE OF CANNABIS, INCLUDING THE 10
3781+CONSUMPTION , SMOKING, OR VAPING OF CANNABI S; 11
3782+
3783+ (III) 3. ENCOURAGES OR PROMOT ES CANNABIS FOR USE AS 12
3784+AN INTOXICANT; OR 13
3785+
3786+ (I) 4. IS OBSCENE; 14
3787+
3788+ (3) (IV) ENGAGE IN ADVERTISIN G BY MEANS OF TELEVI SION, RADIO, 15
3789+INTERNET, MOBILE APPLICATION , SOCIAL MEDIA , OR OTHER ELECTRONIC 16
3790+COMMUNICATION , OR PRINT PUBLICATION , UNLESS AT LEAST 85% OF THE 17
3791+AUDIENCE IS REASONAB LY EXPECTED TO BE AT LEAST 21 YEARS OLD AS 18
3792+DETERMINED BY RELIAB LE AND CURRENT AUDIE NCE COMPOSITION DATA ; OR 19
3793+
3794+ (4) (V) ENGAGE IN ADVERTISIN G BY MEANS OF PLACIN G AN 20
3795+ADVERTISEMENT ON THE SIDE OF A BUILDING O R ANOTHER PUBLICLY V ISIBLE 21
3796+LOCATION OF ANY FORM , INCLUDING A SIGN , A POSTER, A PLACARD, A DEVICE, A 22
3797+GRAPHIC DISPLAY , AN OUTDOOR BILLBOARD, OR A FREESTANDING SIGNBOARD. 23
3798+
3799+ (B) (1) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , 24
3800+EACH CANNABIS–RELATED WEBSITE OWNED, MANAGED, OR OPERATED BY A 25
3801+CANNABIS LICENSEE SHALL EMPLOY A NEUTR AL AGE–SCREENING MECHANISM 26
3802+THAT VERIFIES THAT T HE USER IS AT LEAST 21 YEARS OLD, INCLUDING BY USING A N 27
3803+AGE–GATE, AGE–SCREEN, OR AGE VERIFICATION MECHANISM BEFORE THE USER 28
3804+MAY ACCESS OR VIEW A NY CONTENT AND BEFOR E THE WEBSITE MAY CO LLECT THE 29
3805+USER’S ADDRESS, E–MAIL ADDRESS, PHONE NUMBER , OR CONTACT INFORMATI ON TO 30
3806+DISSEMINATE ADVERTIS EMENTS. 31
3807+ 84 HOUSE BILL 556
3808+
3809+
3810+ (II) IF A WEBSITE IS APPRO PRIATE FOR A QUALIFY ING PATIENT 1
3811+WHO IS UNDER THE AGE OF 21 YEARS, THE WEBSITE SHALL PR OVIDE AN 2
3812+ALTERNATIVE SCREENIN G MECHANISM FOR THE QUALIFYING PATIENT . 3
3813+
3814+ (2) AN ADVERTISEMENT PLAC ED ON SOCIAL MEDIA O R A MOBILE 4
3815+APPLICATION SHALL IN CLUDE A NOTIFICATION THAT AN INDIVIDUAL M UST BE AT 5
3816+LEAST 21 YEARS OLD TO VIEW TH E CONTENT. 6
3817+
3818+ (3) THE PROVISIONS OF THI S SUBTITLE APPLICABL E TO CANNABIS 7
3819+LICENSEES MAY NOT BE AVOIDED BY HIRING OR CONTRACTING WITH A 8
3820+THIRD–PARTY, OR OUTSO URCING ADVERTISEMENT S THAT DO NOT COMPLY WITH 9
3821+THIS SUBTITLE. 10
3822+
3823+ (4) A CANNABIS LICENSEE MA Y NOT ALLOW THE USE OF THE 11
3824+LICENSEE’S TRADEMARKS , BRANDS, NAMES, LOCATIONS, OR OTHER 12
3825+DISTINGUISHING CHARA CTERISTICS FOR THIRD –PARTY USE FOR ADVERT ISEMENTS 13
3826+THAT DO NOT COMPLY WITH THIS SUB TITLE. 14
3827+
3828+ (C) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS TO 15
3829+ESTABLISH: 16
3830+
3831+ (1) PROCEDURES FOR THE E NFORCEMENT OF THIS S ECTION; AND 17
3832+
3833+ (2) A PROCESS FOR AN IND IVIDUAL TO VOLUNTARI LY SUBMIT AN 18
3834+ADVERTISEMENT TO THE DIVISION FOR AN ADVISORY OPINION ON WHETHER THE 19
3835+ADVERTISEMENT COMPLI ES WITH THE RESTRICT IONS ON ADVERTISEMEN TS FOR 20
3836+CANNABIS, CANNABIS PRODUCTS , EDIBLE CANNABIS PROD UCTS, AND 21
3837+CANNABIS–RELATED SERVICES . 22
3838+
3839+SUBTITLE 10. RESPONSIBLE VENDOR TRAINING PROGRAM. 23
3840+
3841+36–1001. 24
3842+
3843+ (A) IF A PERSON WOULD LIK E TO TO OFFER A RESPONSIBLE MEDICAL OR 25
3844+ADULT–USE CANNABIS VENDOR , SERVER, AND SELLER TRAINING PROGRAM, THE A 26
3845+PERSON MUST SHALL SUBMIT AN APPLICATIO N TO THE DIVISION ADMINISTRATION . 27
3846+
3847+ (B) THE DIVISION ADMINISTRATION SHALL APPROVE THE AP PLICATION IF 28
3848+THE PROPOSED TRAININ G PROGRAM MEETS THE MINIMUM EDUCATIONAL 29
3849+STANDARDS ESTABLISHE D UNDER SUBSECTION (C) OF THIS SECTION. 30
3850+
3851+ (C) AT A MINIMUM, A TRAINING PROGRAM M UST: 31
3852+ HOUSE BILL 556 85
3853+
3854+
3855+ (1) BE TAUGHT IN A CLASS ROOM OR VIRTUAL SETT ING FOR AT LEAST 1
3856+A 2–HOUR PERIOD ; 2
3857+
3858+ (2) ESTABLISH PROGRAM ST ANDARDS, INCLUDING CERTIFICAT ION 3
3859+AND RECERTIFICATION REQUIREMENTS , RECORD KEEPING , TESTING AND 4
3860+ASSESSMENT PROTOCOLS , AND EFFECTIVENESS EV ALUATIONS; AND 5
3861+
3862+ (3) PROVIDE A CORE CURRI CULUM OF RELEVANT STATUTORY AND 6
3863+REGULATORY PROVISION S, WHICH SHALL INCLUDE : 7
3864+
3865+ (I) INFORMATION ON REQUI RED LICENSES , AGE 8
3866+REQUIREMENTS , PATIENT REGISTRY CAR DS ISSUED BY THE DIVISION 9
3867+ADMINISTRATION , MAINTENANCE OF RECOR DS, PRIVACY ISSUES, AND UNLAWFUL 10
3868+ACTS; 11
3869+
3870+ (II) ADMINISTRATIVE AND C RIMINAL LIABILITY AN D LICENSE 12
3871+AND COURT SANCTIONS ; 13
3872+
3873+ (III) STATUTORY AND REGULA TORY REQUIREMENTS FO R 14
3874+EMPLOYEES AND OWNERS ; 15
3875+
3876+ (IV) STATUTORY AND REGULA TORY REQUIREMENTS RE LATED 16
3877+TO CANNABIS SALE , TRANSFER, AND DELIVERY ; 17
3878+
3879+ (V) ACCEPTABLE FORMS OF IDENTI FICATION, INCLUDING 18
3880+PATIENT AND CAREGIVE R IDENTIFICATION CAR DS; 19
3881+
3882+ (VI) STATE AND LOCAL LICEN SING AND ENFORCEMENT ; AND 20
3883+
3884+ (VII) INFORMATION ON SERVI NG SIZE, THC AND CANNABINOID 21
3885+POTENCY, AND IMPAIRMENT . 22
3886+
3887+36–1002. 23
3888+
3889+ THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS ESTABLISHING 24
3890+THE RESPONSIBLE VEND OR TRAINING PROGRAM AND THE MINIMUM STAN DARDS 25
3891+FOR THE PROGRAM . 26
3892+
3893+36–1003. 27
3894+
3895+ A PROVIDER OF AN APPRO VED TRAINING PROGRAM SHALL: 28
3896+
3897+ (1) MAINTAIN ITS TRAININ G RECORDS AT ITS PRI NCIPAL PLACE OF 29
3898+BUSINESS FOR AT LEAS T 4 YEARS; AND 30 86 HOUSE BILL 556
3899+
3900+
3901+
3902+ (2) MAKE THE RECORDS AVA ILABLE FOR INSPECTIO N BY THE 1
3903+DIVISION ADMINISTRATION . 2
3904+
3905+SUBTITLE 11. PROHIBITED ACTS. 3
3906+
3907+36–1101. 4
3908+
3909+ (A) A CANNABIS LICENSEE MA Y NOT SELL , TRANSFER, OR DELIVER 5
3910+CANNABIS OR CANNABIS PRODUCTS UNLESS THE LICENSEE VERIFIE S BY MEANS OF 6
3911+A VALID DRIVER ’S LICENSE OR OTHER G OVERNMENT –ISSUED PHOTO 7
3912+IDENTIFICATION CONTA INING THE BEARER ’S DATE OF BIRTH THAT : 8
3913+
3914+ (1) FOR ADULT–USE CANNABIS , THE CONSUMER IS AT L EAST 21 9
3915+YEARS OLD; OR 10
3916+
3917+ (2) FOR MEDICAL CANNABIS , THE PATIENT OR CAREGIV ER IS: 11
3918+
3919+ (I) REGISTERED WITH THE DIVISION ADMINISTRATION ; AND 12
3920+
3921+ (II) AT LEAST 18 YEARS OLD. 13
3922+
3923+ (B) (1) (I) A EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 14
3924+PARAGRAPH , A LICENSEE THAT SELLS , TRANSFERS, OR DELIVERS CANNABIS OR 15
3925+CANNABIS PRODUCTS IN VIOL ATION OF SUBSECTION (A) OF THIS SECTION IS 16
3926+SUBJECT TO A CIVIL P ENALTY OF: 17
3927+
3928+ (I) 1. $500 FOR A FIRST VIOLATIO N; 18
3929+
3930+ (II) 2. $1,000 FOR A SECOND VIOLATI ON OCCURRING 19
3931+WITHIN 24 MONTHS AFTER THE FIR ST VIOLATION; AND 20
3932+
3933+ (III) 3. $5,000 FOR EACH SUBSEQUENT VIOLATION 21
3934+OCCURRING WITHIN 24 MONTHS AFTER THE IMM EDIATELY PRECEDING V IOLATION. 22
3935+
3936+ (II) A VIOLATION OF SUBSECT ION (A) OF THIS SECTION THAT 23
3937+OCCURS MORE THAN 24 MONTHS AFTER THE IMM EDIATELY PRECEDING V IOLATION 24
3938+SHALL BE TREATED AS A FIRST VIOLATION. 25
3939+
3940+ (2) THE DIVISION ADMINISTRATION MAY DENY A CANNABIS LICENSE 26
3941+TO AN APPLICANT , REPRIMAND A CANNABIS LICENSEE, OR SUSPEND OR REVOKE A 27
3942+CANNABIS LICENSE IF THE APPLICANT OR LIC ENSEE VIOLATES SUBSE CTION (A) OF 28
3943+THIS SECTION TWO OR MORE TIMES IN A 24–MONTH PERIOD . 29
3944+ HOUSE BILL 556 87
3945+
3946+
3947+ (3) IN A HEARING FOR AN A LLEGED VIOLATION OF THIS SECTION, IT 1
3948+IS A DEFENSE THAT AN AGENT OF THE DEFENDA NT EXAMINED THE CONS UMER’S, 2
3949+PATIENT’S, OR CAREGIVER ’S DRIVER’S LICENSE OR OTHER V ALID IDENTIFICATION 3
3950+ISSUED BY A GOVERNME NTAL UNIT TH AT POSITIVELY IDENTI FIED THE CONSUMER , 4
3951+PATIENT, OR CAREGIVER AS MEET ING THE MINIMUM AGE SPECIFIED IN SUBSECT ION 5
3952+(A) OF THIS SECTION. 6
3953+
3954+ (C) (1) A CANNABIS LICENSEE MA Y NOT: 7
3955+
3956+ (I) SELL, TRANSFER, OR DELIVER CANNABIS TO AN INDIVIDUAL 8
3957+WHO IS VISIBLY INTOX ICATED; OR 9
3958+
3959+ (II) OFFER CANNABIS OR CA NNABIS PRODUCTS AS A PRIZE, 10
3960+PREMIUM, OR CONSIDERATION FOR A LOTTERY, CONTEST, GAME OF CHANCE , GAME 11
3961+OF SKILL, OR COMPETITION OF AN Y KIND; OR 12
3962+
3963+ (III) CONDUCT DIRECT –TO–CONSUMER INTERNET SALES OF 13
3964+ADULT–USE CANNABIS ON OR BEFORE JULY 1, 2025. 14
3965+
3966+ (2) A CANNABIS LICENSEE TH AT VIOLATES PARAGRAP H (1) OF THIS 15
3967+SUBSECTION IS SUBJEC T TO A FINE NOT EXCE EDING $1,000, SUSPENSION OR 16
3968+REVOCATION OF A LICE NSE, OR BOTH. 17
3969+
3970+ (D) (1) A DISPENSARY MAY NOT : 18
3971+
3972+ (I) PACKAGE OR REPACKAGE CANNABIS OR CANNABIS 19
3973+PRODUCTS; 20
3974+
3975+ (II) TRANSFORM CANNABIS O R CANNABIS PRODUCTS INTO 21
3976+ANOTHER PRODUCT OR A N EXTRACT; OR 22
3977+
3978+ (III) WRAP, ROLL, OR OTHERWISE ENCASE CANNABIS FOR THE 23
3979+PURPOSE OF SMOKING T HE CANNABIS. 24
3980+
3981+ (2) A DISPENSARY THAT VIOL ATES PARAGRAPH (1) OF THIS 25
3982+SUBSECTION IS SUBJEC T TO A FINE NOT EXCE EDING $1,000, SUSPENSION OR 26
3983+REVOCATION OF A LICE NSE, OR BOTH. 27
3984+
3985+36–1102. 28
3986+
3987+ (A) THIS TITLE MAY NOT BE CONSTRUED TO AUTHORI ZE AN INDIVIDUAL TO : 29
3988+
3989+ (1) OPERATE, NAVIGATE, OR BE IN ACTUAL PHYS ICAL CONTROL OF A 30
3990+MOTOR VEHICLE , AIRCRAFT, OR BOAT WHILE UNDER THE INFLUENCE OF CAN NABIS; 31 88 HOUSE BILL 556
3991+
3992+
3993+
3994+ (2) USE CANNABIS IN A PU BLIC PLACE; 1
3995+
3996+ (3) USE CANNABIS IN A MO TOR VEHICLE; 2
3997+
3998+ (4) EXCEPT AS PROVIDED I N SUBSECTION (B) OF THIS SECTION , 3
3999+SMOKE CANNABIS ON A PRIVATE PROPERTY THA T: 4
4000+
4001+ (I) 1. IS RENTED FROM A LAN DLORD; AND 5
4002+
4003+ 2. IS SUBJECT TO A POLI CY THAT PROHIBITS TH E 6
4004+SMOKING OF CANNABIS ON THE PROPERTY ; OR 7
4005+
4006+ (II) IS SUBJECT TO A POLI CY THAT PROHIBITS TH E SMOKING OF 8
4007+CANNABIS ON THE PROP ERTY OF AN ATTACHED DWELLING ADOPTED BY ONE OF THE 9
4008+FOLLOWING ENTITIES : 10
4009+
4010+ 1. THE BOARD OF DIRECTO RS OF THE COUNCIL OF UNIT 11
4011+OWNERS OF A CONDOMIN IUM REGIME; OR 12
4012+
4013+ 2. THE GOVERNING BODY O F A HOMEOWNERS 13
4014+ASSOCIATION; OR 14
4015+
4016+ (5) POSSESS CANNABIS , INCLUDING CANNABIS P RODUCTS, IN A 15
4017+LOCAL DETENTIO N FACILITY, COUNTY JAIL, STATE PRISON, REFORMATORY , OR 16
4018+OTHER CORRECTIONAL F ACILITY, INCLUDING A FACILITY FOR THE DETENTION OF 17
4019+JUVENILE OFFENDERS . 18
4020+
4021+ (B) THE PROVISIONS OF SUB SECTION (A)(4) OF THIS SECTION DO N OT 19
4022+APPLY TO VAPORIZING CANNABIS. 20
4023+
4024+36–1103. 21
4025+
4026+ (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 22
4027+INDICATED. 23
4028+
4029+ (2) “HEMP” HAS THE MEANING STAT ED IN § 14–401 OF THE 24
4030+AGRICULTURE ARTICLE. 25
4031+
4032+ (3) “TETRAHYDROCANNABINOL ” MEANS: 26
4033+
4034+ (I) ANY TETRAHYDROCANNAB INOL, INCLUDING 27
4035+DELTA–8–TETRAHYDROCANNABINOL , DELTA–9–TETRAHYDROCANNABINOL , AND 28
4036+DELTA–10–TETRAHYDROCANNABINOL , REGARDLESS OF HOW DE RIVED; 29 HOUSE BILL 556 89
4037+
4038+
4039+
4040+ (II) ANY OTHER CANNABINOI D, EXCEPT CANNABIDIOL T HAT THE 1
4041+ADMINISTRATION DETERM INES TO CAUSE INTOXI CATION; AND 2
4042+
4043+ (III) ANY OTHER C HEMICALLY SIMILAR CO MPOUND, SUBSTANCE, 3
4044+DERIVATIVE, OR ISOMER OF TETRAHY DROCANNABINOL , AS IDENTIFIED BY THE 4
4045+ADMINISTRATION . 5
4046+
4047+ (4) “TINCTURE” MEANS A SOLUTION THA T IS: 6
4048+
4049+ (I) DISSOLVED IN ALCOHOL , GLYCERIN, OR VEGETABLE OIL ; 7
4050+AND 8
4051+
4052+ (II) DISTRIBUTED IN A D ROPPER BOTTLE OF 4 OUNCES OR LESS . 9
4053+
4054+ (A) (B) (1) A PERSON MAY NOT SELL OR DISTRIBUTE A PROD UCT 10
4055+INTENDED FOR HUMAN C ONSUMPTION OR INHALA TION THAT CONTAINS M ORE THAN 11
4056+0.5 MILLIGRAMS OF TETRAH YDROCANNABINOL PER S ERVING OR 2.5 MILLIGRAMS 12
4057+OF TETRAHYDROCANNABI NOL PER PACKAGE UNLE SS THE PERSON IS LIC ENSED 13
4058+UNDER § 36–401 OF THIS TITLE AND TH E PRODUCT COMPLIES W ITH THE: 14
4059+
4060+ (I) MANUFACTURING STANDA RDS ESTABLISHED UNDE R § 15
4061+36–203 OF THIS TITLE; 16
4062+
4063+ (II) LABORATORY TESTING S TANDARDS ESTABLISHED UNDER § 17
4064+36–203 OF THIS TITLE; AND 18
4065+
4066+ (III) PACKAGING AND LABELI NG STAND ARDS ESTABLISHED 19
4067+UNDER § 36–203 OF THIS TITLE. 20
4068+
4069+ (2) A PERSON MAY NOT SELL OR DISTRIBUTE A PROD UCT DESCRIBED 21
4070+UNDER PARAGRAPH (1) OF THIS SUBSECTION T O AN INDIVIDUAL UNDE R THE AGE OF 22
4071+21 YEARS. 23
4072+
4073+ (B) (C) A PERSON MAY NOT SELL OR DISTRIBUTE A CANN ABINOID 24
4074+PRODUCT THAT IS NOT DERIVED FROM NATURAL LY OCCURRING BIOLOGI CALLY 25
4075+ACTIVE CHEMICAL CONS TITUENTS. 26
4076+
4077+ (D) (1) NOTWITHSTANDING SUBSE CTION (B) OF THIS SECTION AND 27
4078+SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IT IS NOT A VIOLATIO N OF THIS 28
4079+SECTION FOR A PERSON TO SELL OR DISTRIBUTE A HEMP–DERIVED TINCTURE 29
4080+INTENDED FOR HUMAN C ONSUMPTION THAT CONT AINS: 30
4081+ 90 HOUSE BILL 556
4082+
4083+
4084+ (I) A RATIO OF CANNABIDI OL TO TETRAHYDROCANN ABINOL OF 1
4085+AT LEAST 15 TO 1; AND 2
4086+
4087+ (II) 2.5 MILLIGRAMS OR LESS O F TETRAHYDROCANNABIN OL PER 3
4088+SERVING AND 100 MILLIGRAMS OR LESS OF TETRAHYDR OCANNABINOL PER 4
4089+PACKAGE. 5
4090+
4091+ (2) TO SELL OR DISTRIBUTE A HEMP–DERIVED TINCTURE UND ER THIS 6
4092+SUBSECTION, A PERSON MUST PROVID E, AS REQUIRED BY THE ADMINISTRATION , 7
4093+TINCTURE SAMPLES FOR THE PURPOSE OF TESTI NG TO DETERMINE CHEM ICAL 8
4094+POTENCY AND COMPOSITION LEVELS A ND TO DETECT AND QUA NTIFY 9
4095+CONTAMINANTS . 10
4096+
4097+ (C) (E) A PERSON WHO VIOLATES SUBSECTION (A) (B) OF THIS SECTION 11
4098+IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS SUBJECT TO A FINE NOT 12
4099+EXCEEDING $5,000. 13
4100+
4101+ (D) (F) A PERSON WHO VIOLATES SUBSECTION (B) (C) OF THIS SECTION 14
4102+IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS SUBJECT TO A FINE NOT 15
4103+EXCEEDING $10,000. 16
4104+
4105+SUBTITLE 12. LEGAL PROTECTIONS. 17
4106+
4107+36–1201. 18
4108+
4109+ THE FOLLOWING PERSONS ACTING IN ACCORDANCE WITH THE PROVISIONS 19
4110+OF THIS TITLE MAY NO T BE SUBJECT TO ARRE ST, PROSECUTION , REVOCATION OF 20
4111+MANDATORY SUPERVISIO N, PAROLE, OR PROBATION , OR ANY CIVIL OR 21
4112+ADMINISTRATIVE PENAL TY, INCLUDING A CIVIL PE NALTY OR DISCIPLI NARY ACTION 22
4113+BY A PROFESSIONAL LI CENSING BOARD , OR BE DENIED ANY RIG HT OR PRIVILEGE , 23
4114+FOR THE USE OF OR PO SSESSION OF CANNABIS THAT IS AUTHORIZED U NDER THIS 24
4115+TITLE: 25
4116+
4117+ (1) A QUALIFYING PATIENT ; 26
4118+
4119+ (2) A CANNABIS LICENSEE OR CANNABIS REGISTRA NT THAT IS 27
4120+LICENSED OR REGISTERED UN DER THIS TITLE; 28
4121+
4122+ (3) A CERTIFYING PROVIDE R; 29
4123+
4124+ (4) A CAREGIVER; 30
4125+
4126+ (5) AN ACADEMIC RESEARCH REPRESENTATIVE PURCH ASING 31
4127+MEDICAL CANNABIS UND ER § 36–701 SUBTITLE 7 OF THIS TITLE; 32 HOUSE BILL 556 91
4128+
4129+
4130+
4131+ (6) A HOSPITAL, MEDICAL FACILITY , OR HOSPICE PROGRAM WHERE A 1
4132+QUALIFYING PATIENT I S RECEIVING TREATMEN T; OR 2
4133+
4134+ (7) DESIGNATED SCHOOL PE RSONNEL AUTHORIZED T O ADMINISTER 3
4135+MEDICAL CANNABIS TO A STUDENT IN ACCORDA NCE WITH THE GUIDELI NES 4
4136+ESTABLISHED UNDER § 7–446 OF THE EDUCATION ARTICLE UNLESS THE AC T OR 5
4137+OMISSION CONSTITUTES GROSS NEGLIGENCE OR WANTON OR WILLFUL 6
4138+MISCONDUCT . 7
4139+
4140+SUBTITLE 13. CIVIL IMMUNITIES AND LIABILITIES RESERVED. 8
4141+
4142+36–1301. 9
4143+
4144+ (A) EXCEPT AS PROVIDED IN THIS SECTION, NEITHER THE STATE NOR ANY 10
4145+OF ITS POLITICAL SUB DIVISIONS MAY DENY A BENEFIT, AN ENTITLEMENT , A 11
4146+DRIVER’S LICENSE, A PROFESSIONAL LICEN SE, HOUSING ASSISTANCE , SOCIAL 12
4147+SERVICES, OR OTHER BENEFITS BA SED ON LAWFUL CANNAB IS USE OR FOR THE 13
4148+PRESENCE OF CANNABIN OIDS OR CANNABINOID METABOLITES IN THE U RINE, 14
4149+BLOOD, SALIVA, BREATH, HAIR, OR OTHER TISSUE OR FLUID O F AN INDIVIDUAL WHO 15
4150+IS AT LEAST 21 YEARS OLD OR A QUALI FYING PATIENT WHO IS UNDER THE AGE OF 16
4151+21 YEARS. 17
4152+
4153+ (B) AN INDIVIDUAL MAY NOT BE DENIED CUSTODY OF OR VISITATION WITH 18
4154+A MINOR FOR ACTING I N ACCORDANCE WITH TH IS TITLE, UNLESS THE INDI VIDUAL’S 19
4155+BEHAVIOR CREATES AN UNREASONABLE DANGER TO THE MINOR THAT CA N BE 20
4156+CLEARLY ARTICULATED AND SUBSTANTIATED . 21
4157+
4158+ (C) EXCEPT AS PROVIDED IN THIS SECTION, NEITHER THE STATE NOR ANY 22
4159+OF ITS POLITICAL SUB DIVISIONS MAY DENY E MPLOYMENT OR A CONTR ACT TO AN 23
4160+INDIVIDUAL FOR A PRIOR CO NVICTION FOR A NONVI OLENT CANNABIS OFFEN SE 24
4161+THAT DOES NOT INVOLV E DISTRIBUTION TO MI NORS. 25
4162+
4163+ (D) FOR THE PURPOSES OF M EDICAL CARE, INCLUDING ORGAN AND TISSUE 26
4164+TRANSPLANTS : 27
4165+
4166+ (1) THE USE OF CANNABIS DOES NOT CONSTITUTE THE USE OF AN 28
4167+ILLICIT SUBSTANCE OR OTHER WISE DISQUALIFY AN I NDIVIDUAL FROM NEEDE D 29
4168+MEDICAL CARE ; AND 30
4169+
4170+ (2) MAY BE CONSIDERED ON LY WITH RESPECT TO E VIDENCE–BASED 31
4171+CLINICAL CRITERIA . 32
4172+ 92 HOUSE BILL 556
4173+
4174+
4175+ (E) (1) THIS SECTION DOES NOT PREVENT A GOVERNMENT EMPLOYER 1
4176+FROM DISCIPLINING AN EMPLOYEE OR A CONTRACTOR FOR : 2
4177+
4178+ (I) INGESTING CANNABIS I N THE WORKPLACE ; OR 3
4179+
4180+ (II) WORKING WHILE IMPAIR ED BY CANNABIS . 4
4181+
4182+ (2) THE PROTECTIONS PROVI DED BY THIS SECTION DO NOT APPLY TO 5
4183+THE EXTENT THAT THEY CONFLICT WITH A GOVE RNMENT EMPLOYER ’S 6
4184+OBLIGATIONS UNDER FEDERAL LAW OR TO TH E EXTENT THAT THEY W OULD 7
4185+DISQUALIFY THE ENTIT Y FROM A MONETARY OR LICENSING–RELATED BENEFIT 8
4186+UNDER FEDERAL LAW . 9
4187+
4188+ (3) THIS SECTION DOES NOT AUTHORIZE ANY PERSON TO ENGAGE IN, 10
4189+AND DOES NOT PREVENT THE IMPOSITION OF AN Y CIVIL, CRIMINAL, DISCIPLINE, OR 11
4190+OTHER PENALTIES , INCLUDING DISCIPLINE OR TERMINATION BY A GOVERNMENT 12
4191+EMPLOYER FOR ENGAGIN G IN ANY TASK WHILE UNDER THE INFLUENCE OF 13
4192+CANNABIS, WHEN DOING SO WOULD CONSTITUTE NEGLIGENC E OR PROFESSIONAL 14
4193+MALPRACTICE . 15
4194+
4195+ (F) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO PREVENT OR 16
4196+PROHIBIT ANY EMPLOYE R FROM DENYING EMPLO YMENT OR A CONTRACT TO AN 17
4197+INDIVIDUAL OR DISCIP LINING AN EMPLOYEE O R A CONTRACTOR FOR T ESTING 18
4198+POSITIVE FOR THE PRE SENCE OF CANNABINOID S OR CANNABINOID MET ABOLITES 19
4199+IN THE URINE, BLOOD, SALIVA, BREATH, HAIR, OR OTHER TISSUE OR F LUID OF THE 20
4200+EMPLOYEE’S OR CONTRACTOR ’S BODY, IF THE TEST WAS COND UCTED IN 21
4201+ACCORDANCE WITH THE EMPLOYER’S ESTABLISHED DRUG T ESTING POLICY. 22
4202+
4203+36–1302. 23
4204+
4205+ (A) A HOLDER OF A PROFESSI ONAL OR OCCUPATIONAL LICENSE MAY NOT 24
4206+BE SUBJECT TO PROFESSIO NAL DISCIPLINE FOR P ROVIDING ADVICE OR S ERVICES 25
4207+RELATED TO CANNABIS ESTABLISHMENTS OR AP PLICATIONS TO OPERAT E 26
4208+CANNABIS ESTABLISHME NTS ON THE BASIS THA T CANNABIS IS ILLEGA L UNDER 27
4209+FEDERAL LAW . 28
4210+
4211+ (B) AN APPLICANT FOR A PR OFESSIONAL OR OCC UPATIONAL LICENSE MA Y 29
4212+NOT BE DENIED A LICE NSE BASED ON PREVIOU S EMPLOYMENT RELATED TO 30
4213+CANNABIS ESTABLISHME NTS OPERATING IN ACC ORDANCE WITH STATE LAW. 31
4214+
4215+36–1303. 32
4216+ HOUSE BILL 556 93
4217+
4218+
4219+ AN AGENCY OR A POLITI CAL SUBDIVISION OF T HE STATE MAY NOT RELY ON A 1
4220+VIOLATION OF FEDERAL LAW RELATED TO CANNABIS A S THE SOLE BASIS FOR 2
4221+TAKING AN ADVERSE AC TION AGAINST A PERSO N. 3
4222+
4223+36–1304. 4
4224+
4225+ (A) IT IS THE PUBLIC POLI CY OF THE STATE THAT CONTRACTS RELATED TO 5
4226+THE OPERATION OF A C ANNABIS ESTABLISHMEN T LICENSED IN ACCORD ANCE WITH 6
4227+THIS SUBTITLE ARE ENFORCEABLE . 7
4228+
4229+ (B) IT IS THE PUBLIC POLI CY OF THE STATE THAT NO CONTRAC T ENTERED 8
4230+INTO BY A LICENSED C ANNABIS ESTABLISHMEN T OR ITS AGENTS AS A UTHORIZED IN 9
4231+ACCORDANCE WITH A VA LID LICENSE, OR BY THOSE WHO ALLO W PROPERTY TO BE 10
4232+USED BY A CANNABIS E STABLISHMENT , ITS EMPLOYEES , OR ITS AGENTS AS 11
4233+AUTHORIZED IN ACCORD ANCE WITH A VALID LI CENSE, SHALL BE UNENFORCEAB LE 12
4234+ON THE BASIS THAT CU LTIVATING, OBTAINING, MANUFACTURING , DISTRIBUTING, 13
4235+DISPENSING, TRANSPORTING , SELLING, POSSESSING, OR USING CANNABIS IS 14
4236+PROHIBITED BY FEDERAL LAW . 15
4237+
4238+SUBTITLE 14. CAPITAL ACCESS PROGRAM. 16
4239+
4240+36–1401. 17
4241+
4242+ (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 18
4243+INDICATED. 19
4244+
4245+ (B) “BORROWER” MEANS A BUSINESS THA T: 20
4246+
4247+ (1) QUALIFIES AS A SMALL BUSINESS UNDER THE U.S. SMALL 21
4248+BUSINESS ADMINISTRATION SIZE STANDARDS ; 22
4249+
4250+ (2) APPLIES TO A LENDER FOR BUSINESS FINANCI NG; AND 23
4251+
4252+ (3) HAS FEWER THAN 50 EMPLOYEES. 24
4253+
4254+ (C) “DEPARTMENT ” MEANS THE DEPARTMENT OF COMMERCE. 25
4255+
4256+ (C) (D) “LENDER” MEANS: 26
4257+
4258+ (1) A CREDIT UNION , AS DEFINED IN § 1–101 OF THE FINANCIAL 27
4259+INSTITUTIONS ARTICLE; 28
4260+
4261+ (2) A FINANCIAL INSTITUT ION, AS DEFINED IN § 1–101 OF THE 29
4262+FINANCIAL INSTITUTIONS ARTICLE; OR 30 94 HOUSE BILL 556
4263+
4264+
4265+
4266+ (3) A COMMUNITY DEVELOPM ENT FINANCIAL INSTIT UTION, AS 1
4267+DEFINED IN 12 U.S.C. § 4702(5). 2
4268+
4269+ (D) (E) “PROGRAM” MEANS THE CAPITAL ACCESS PROGRAM 3
4270+ESTABLISHED UNDER TH IS SUBTITLE. 4
4271+
4272+36–1402. 5
4273+
4274+ THERE IS A CAPITAL ACCESS PROGRAM IN THE DEPARTMENT OF 6
4275+COMMERCE. 7
4276+
4277+36–1403. 8
4278+
4279+ THE PURPOSE OF THE PROGRAM IS TO STIMULA TE OPPORTUNITIES FOR 9
4280+SOCIAL EQUITY LICENSEES THAT HAVE DIFFICULTY OBTAINING FINANCING AND TO 10
4281+ESTABLISH A LOAN LOS S RESERVE ACCOUNT . 11
4282+
4283+36–1404. 12
4284+
4285+ (A) A LOAN TO A SOCIAL EQU ITY LICENSEE QUALIFI ES UNDER THE 13
4286+PROGRAM IF THE LOAN : 14
4287+
4288+ (1) SATISFIES THE LENDIN G CRITERIA OF THE FINANCIAL 15
4289+INSTITUTION LENDER; AND 16
4290+
4291+ (2) HAS A TERM NOT EXCEE DING 10 YEARS; AND 17
4292+
4293+ (3) DOES NOT EXCEED : 18
4294+
4295+ (I) FOR A DISPENSARY , $500,000; OR 19
4296+
4297+ (II) FOR A GROWER OR PROC ESSOR, $1,000,000. 20
4298+
4299+ (B) A LOAN THAT QUALIFIES UNDER SUBSECTION (A) OF THIS SECTION MAY 21
4300+BE SHORT OR LONG TERM, HAVE FIXED OR VARIAB LE RATES, AND BE SECURED OR 22
4301+UNSECURED . 23
4302+
4303+36–1405. 24
4304+
4305+ (A) IF A LENDER WOULD LIK E TO TO PARTICIPATE IN THE PROGRAM, THE 25
4306+LENDER MUST A LENDER SHALL ENROLL THE QUALIFYIN G LOAN IN THE PROGRAM 26
4307+NOT MORE THAN 30 DAYS AFTER THE DATE OF THE FIRST DISBURSEMENT OF THE 27
4308+LOAN. 28 HOUSE BILL 556 95
4309+
4310+
4311+
4312+ (B) A LENDER MAY ENROLL AL L OR A PORTION OF A QUALIFYING LOAN IN 1
4313+AN AMOUNT OF NOT MOR E THAN: 2
4314+
4315+ (1) FOR A DISPENSARY , $500,000; OR 3
4316+
4317+ (2) FOR A GROWER OR PROC ESSOR, $1,000,000. 4
4318+
4319+36–1406. 5
4320+
4321+ (A) THE DEPARTMENT SHALL ESTA BLISH A LOAN LOSS RESERVE ACCOUNT 6
4322+FOR A LENDER WHEN TH E LENDER ENROLLS ITS FIRST LOAN UNDER THE PROGRAM. 7
4323+
4324+ (B) AT THE TIME OF ENROLL MENT: 8
4325+
4326+ (1) THE BORROWER SHALL M AKE A PAYMENT TO THE ACCOUNT OF 9
4327+BETWEEN 0% AND 7% OF THE ENROLLED LOAN AMOUNT; 10
4328+
4329+ (2) THE LENDER SHALL MAKE A PAYMENT TO THE ACCOUNT OF AT 11
4330+LEAST 2% OF THE ENROLLED AMOU NT; AND 12
4331+
4332+ (3) THE DIVISION ADMINISTRATION SHALL MAKE A MATCHIN G 13
4333+PAYMENT TO THE ACCOU NT IN AN AMOUNT EQUA L TO THE BORROWER AN D 14
4334+LENDER’S AGGREGATE PAYMENT UNDER ITEMS (1) AND (2) OF THIS SUBSECTION. 15
4335+
4336+ (C) THE LOAN LOSS RESERVE ACCOUNT OF A LENDER SHALL BE AVAILABLE 16
4337+FOR THE LENDER TO WI THDRAW IF A BORROWER DEFAULTS ON A QUALIF YING LOAN. 17
4338+
4339+ (D) THE DEPARTMENT SHALL COLL ABORATE WITH THE OFFICE OF SOCIAL 18
4340+EQUITY ESTABLISHED UN DER § 1–309.1 OF THIS ARTICLE TO IDEN TIFY AND ASSIST 19
4341+BUSINESSES WITH OBTA INING FINANCING FROM THE PROGRAM. 20
4342+
4343+ (E) THE DEPARTMENT SHALL ESTA BLISH PROCEDURES FOR A LENDER TO 21
4344+WITHDRAW FROM THE PROGRAM. 22
4345+
4346+SUBTITLE 15. BANKING AND INSURANCE. 23
4347+
4348+36–1501. 24
4349+
4350+ (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 25
4351+INDICATED. 26
4352+
4353+ (B) “CANNABIS–RELATED LEGITIMATE B USINESS” MEANS A 27
4354+MANUFACTURER , PRODUCER, OR ANOTHER PERSON TH AT: 28 96 HOUSE BILL 556
4355+
4356+
4357+
4358+ (B) “CANNABIS BUSINESS ” MEANS A MANUFACTURER , PRODUCER, OR 1
4359+ANOTHER PERSON THAT : 2
4360+
4361+ (1) PARTICIPATES IN ANY BUSINESS OR ORGANIZED ACTIVITY THAT 3
4362+INVOLVES HANDLING CA NNABIS OR CANNABIS P RODUCTS, INCLUDING 4
4363+CULTIVATING, PRODUCING, MANUFACTURING , SELLING, TRANSPORTING , 5
4364+DISPLAYING, DISPENSING, DISTRIBUTING, OR PURCHASING CANNAB IS OR CANNABIS 6
4365+PRODUCTS; AND 7
4366+
4367+ (2) ENGAGES IN AN ACTIVITY DES CRIBED IN ITEM (1) OF THIS 8
4368+SUBSECTION IN ACCORD ANCE WITH STATE LAW. 9
4369+
4370+ (C) “DEPOSITORY INSTITUTIO N” MEANS A STATE–CHARTERED OR 10
4371+FEDERALLY CHARTERED FINANCIAL INSTITUTIO N, OTHER–STATE BANK , OR 11
4372+FOREIGN BRANCH THAT : 12
4373+
4374+ (1) IS LOCATED IN THE STATE OR MAINTAINS BR ANCHES IN THE 13
4375+STATE; AND 14
4376+
4377+ (2) IS AUTHORIZED TO MAI NTAIN ACCOUNTS . 15
4378+
4379+ (C) (D) (1) “SERVICE PROVIDER ” MEANS A BUSINESS , AN 16
4380+ORGANIZATION , OR ANY OTHER PERSON THAT: 17
4381+
4382+ (I) SELLS GOODS OR SERVI CES TO A CANNABIS–RELATED 18
4383+CANNABIS LEGITIMATE BUSINESS; OR 19
4384+
4385+ (II) PROVIDES ANY BUSINES S SERVICES, INCLUDING THE SALE 20
4386+OR LEASE OF REAL OR ANY OTHER PROPERTY , LEGAL OR OTHER LICEN SED 21
4387+SERVICES, OR ANY OTHER ANCILLA RY SERVICE, RELATING TO CANNABIS . 22
4388+
4389+ (2) “SERVICE PROVIDER ” DOES NOT INCLUDE A BUSINESS, AN 23
4390+ORGANIZATION , OR ANY OTHER PERSON THAT PARTICIPATES IN ANY BUSINESS OR 24
4391+ORGANIZED ACTIVITY T HAT INVOLVES HANDLIN G CANNABIS OR CANNAB IS 25
4392+PRODUCTS, INCLUDING CULTIVATIN G, PRODUCING, MANUFACTURING , SELLING, 26
4393+TRANSPORTING , DISPLAYING, DISPENSING, DISTRIBUTING, OR PURCHASING 27
4394+CANNABIS OR CANNABIS PRODUCTS. 28
4395+
4396+36–1502. 29
4397+
4398+ THE PROVISIONS IN THI S SUBTITLE APPLY TO : 30
4399+ HOUSE BILL 556 97
4400+
4401+
4402+ (1) ALL BANKS, CREDIT UNIONS , AND OTHER ENTITIES O PERATING AS 1
4403+DEPOSITORY INSTITUTI ONS IN THE STATE; AND 2
4404+
4405+ (2) INSURANCE COMPANIES AND INSURANCE PRODUCERS 3
4406+OPERATING IN THE STATE. 4
4407+
4408+36–1503. 5
4409+
4410+ (A) THE STATE BANKING REGULAT OR OFFICE COMMISIONER OF 6
4411+FINANCIAL REGULATION MAY NOT: 7
4412+
4413+ (1) TERMINATE OR LIMIT T HE DEPOSIT INSURANCE OR SHARE 8
4414+INSURANCE OF A DEPOS ITORY INSTITUTION UN DER THE FEDERAL DEPOSIT 9
4415+INSURANCE ACT OR THE FEDERAL CREDIT UNION ACT, A DEPOSITORY 10
4416+INSTITUTION OPERATIN G IN THE STATE UNDER THE FINANCIAL INSTITUTIONS 11
4417+ARTICLE, OR TAKE ANY OTHER AD VERSE ACTION AGAINST A DEPOSITORY 12
4418+INSTITUTION UNDER 12 U.S.C. § 1818 SOLELY BECAUSE THE D EPOSITORY 13
4419+INSTITUTION PROVIDES OR HAS PROVIDED FINA NCIAL SERVICES TO A 14
4420+CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER; 15
4421+
4422+ (2) PROHIBIT, PENALIZE, OR OTHERWISE DISCOUR AGE A 16
4423+DEPOSITORY INSTITUTI ON FROM PROVIDING FI NANCIAL SERVICES TO A 17
4424+CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS IN THE STATE; 18
4425+
4426+ (3) RECOMMEND , INCENTIVIZE, OR ENCOURAGE A DEPOS ITORY 19
4427+INSTITUTION NOT TO TO NOT OFFER FINANCIAL SERV ICES TO AN ACCOUNT H OLDER, 20
4428+OR TO DOWNGRADE OR C ANCEL THE FINANCIAL SERVICES OFFERED TO AN 21
4429+ACCOUNT HOLDER SOLEL Y BECAUSE: 22
4430+
4431+ (I) THE ACCOUNT HOLDER I S A CANNABIS–RELATED CANNABIS 23
4432+LEGITIMATE BUSINESS OR SERVICE PROVIDER, OR IS AN EMPLOYEE , OWNER, OR 24
4433+OPERATOR OF A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE 25
4434+PROVIDER; 26
4435+
4436+ (II) THE ACCOUNT HOLDER L ATER BECOMES AN EMPL OYEE, 27
4437+OWNER, OR OPERATOR OF A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS 28
4438+OR SERVICE PROVIDER ; OR 29
4439+
4440+ (III) THE DEPOSITORY INSTI TUTION WAS NOT AWARE THAT THE 30
4441+ACCOUNT HOLDER IS AN EMPLOYEE, OWNER, OR OPERATOR OF A 31
4442+CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER; 32
4443+
4444+ (4) TAKE ANY ADVERSE OR CORRECTIVE SUPERVISO RY ACTION ON A 33
4445+LOAN MADE TO : 34 98 HOUSE BILL 556
4446+
4447+
4448+
4449+ (I) A CANNABIS–RELATED LEGITIMATE BUSINESS OR SERVICE 1
4450+PROVIDER SOLELY BECA USE THE BUSINESS IS A CANNABIS–RELATED CANNABIS 2
4451+LEGITIMATE BUSINESS OR SERVICE PROVIDER; 3
4452+
4453+ (II) AN EMPLOYEE , OWNER, OR OPERATOR OF A 4
4454+CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER 5
4455+SOLELY BECAUSE THE E MPLOYEE, OWNER, OR OPERATOR IS EMPLO YED BY, OWNS, 6
4456+OR OPERATES A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE 7
4457+PROVIDER, AS APPLICABLE; OR 8
4458+
4459+ (III) AN OWNER OR OPERATOR OF REAL ESTATE OR EQ UIPMENT 9
4460+THAT IS LEASED TO A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR 10
4461+SERVICE PROVIDER SOL ELY BECAUSE THE OWNE R OR OPERATOR OF THE R EAL 11
4462+ESTATE OR EQUIPMENT LEASED THE EQUIPMENT OR REAL ESTATE TO A 12
4463+CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER, AS 13
4464+APPLICABLE; OR 14
4465+
4466+ (5) PROHIBIT OR PENALIZE A DEPOSITORY INSTITU TION, OR AN 15
4467+ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN ASSOCIATION WITH A 16
4468+DEPOSITORY INSTITUTI ON, OR OTHERWISE DISCOUR AGE A DEPOSITORY 17
4469+INSTITUTION, OR AN ENTITY PERFORM ING A FINANCIAL SERV ICE FOR OR IN 18
4470+ASSOCIATION WITH A DEPOSITOR Y INSTITUTION, FROM ENGAGING IN A F INANCIAL 19
4471+SERVICE FOR A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE 20
4472+PROVIDER. 21
4473+
4474+ (B) SUBSECTION (A) OF THIS SECTION SHAL L APPLY TO AN INSTIT UTION 22
4475+APPLYING FOR A DEPOS ITORY INSTITUTION CH ARTER TO THE SAME EXTEN T AS IT 23
4476+APPLIES TO A DEPOSIT ORY INSTITUTION . 24
4477+
4478+36–1504. 25
4479+
4480+ FOR THE PURPOSES OF TITLE 18 U.S.C. §§ 1956 AND 1957 AND ALL OTHER 26
4481+PROVISIONS OF FEDERA L LAW, THE PROCEEDS FROM A TRANSACTION INVOLVIN G 27
4482+ACTIVITIES OF A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR 28
4483+SERVICE PROVIDER MAY NOT BE CONSIDERED PR OCEEDS FROM AN UNLAW FUL 29
4484+ACTIVITY SOLELY BECA USE: 30
4485+
4486+ (1) THE TRANSACTION INVO LVES PROCEEDS FROM A 31
4487+CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER; OR 32
4488+
4489+ (2) THE TRANSACTION INVOLVES PROCEEDS FR OM: 33
4490+ HOUSE BILL 556 99
4491+
4492+
4493+ (I) CANNABIS–RELATED CANNABIS ACTIVITIES CONDUCTED BY 1
4494+A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS; OR 2
4495+
4496+ (II) ACTIVITIES CONDUCTED BY A SERVICE PROVIDE R. 3
4497+
4498+36–1505. 4
4499+
4500+ (A) WITH RESPECT TO PROVI DING A FINANCIAL SER VICE TO A 5
4501+CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR A SERVIC E PROVIDER, A 6
4502+DEPOSITORY INSTITUTI ON, ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN 7
4503+ASSOCIATION WITH A D EPOSITORY INSTITUTIO N, OR INSURER THAT PROV IDES A 8
4504+FINANCIAL SERVICE TO A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR 9
4505+SERVICE PROVIDER , AND THE OFFICERS , DIRECTORS, AND EMPLOYEES OF THA T 10
4506+DEPOSITORY INSTITUTI ON, ENTITY, OR INSURER MAY NOT B E HELD LIABLE UNDER 11
4507+ANY STATE LAW OR REGULATI ON: 12
4508+
4509+ (1) SOLELY FOR PROVIDING THE FINANCIAL SERVIC E; OR 13
4510+
4511+ (2) FOR FURTHER INVESTIN G ANY INCOME DERIVED FROM THE 14
4512+FINANCIAL SERVICE . 15
4513+
4514+ (B) AN INSURER THAT ENGAG ES IN THE BUSINESS O F INSURANCE WITH A 16
4515+CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER OR 17
4516+THAT OTHERWISE ENGAG ES WITH A PERSON IN A TRANSACTION ALLOWE D UNDER 18
4517+STATE LAW RELATED TO CANNABIS, AND THE OFFICERS , DIRECTORS, AND 19
4518+EMPLOYEES OF THAT IN SURER MAY NOT BE HEL D LIABLE UNDER STATE LAW OR 20
4519+REGULATION : 21
4520+
4521+ (1) SOLELY FOR ENGAGING IN T HE BUSINESS OF INSUR ANCE; OR 22
4522+
4523+ (2) FOR FURTHER INVESTIN G ANY INCOME DERIVED FROM THE 23
4524+BUSINESS OF INSURANC E. 24
4525+
4526+ (C) A DEPOSITORY INSTITUTI ON THAT HAS A LEGAL INTEREST IN THE 25
4527+COLLATERAL FOR A LOA N OR ANOTHER FINANCI AL SERVICE PROVIDED TO AN 26
4528+OWNER, EMPLOYEE, OR OPERATOR OF A CANNABIS–RELATED CANNABIS 27
4529+LEGITIMATE BUSINESS OR SERVICE PROVIDER, OR TO AN OWNER OR OP ERATOR OF 28
4530+REAL ESTATE OR EQUIP MENT THAT IS LEASED OR SOLD TO A CANNABIS–RELATED 29
4531+CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER, MAY NOT BE SUBJECT TO 30
4532+CRIMINAL, CIVIL, OR ADMINISTRATIVE FO RFEITURE OF THAT LEG AL INTEREST 31
4533+UNDER STATE LAW FOR PROVIDI NG THE LOAN OR OTHER FINANCIAL SERVICE . 32
4534+
4535+36–1506. 33
4536+ 100 HOUSE BILL 556
4537+
4538+
4539+ (A) THIS SUBTITLE DOES NO T REQUIRE A DEPOSITO RY INSTITUTION , 1
4540+ENTITY PERFORMING A FINANCIAL SERVICE FOR OR IN ASSOCIATION WITH A 2
4541+DEPOSITORY INSTITUTI ON, OR INSURER TO PROVID E FINANCIAL SERVICES TO A 3
4542+CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS, SERVICE PROVIDER , OR 4
4543+ANY OTHER BUSINESS . 5
4544+
4545+ (B) THIS SUBTITLE MAY NOT BE CONSTRUED TO LIMI T OR OTHERWISE 6
4546+RESTRICT THE GENERAL EXAMINATION , SUPERVISORY , AND ENFORCEMENT 7
4547+AUTHORITY OF THE STATE BANKING REGULAT OR COMMISSIONER OF FINANCIAL 8
4548+REGULATION, PROVIDED THAT THE BA SIS FOR ANY SUPERVIS ORY OR 9
4549+ENFORCEMEN T ACTION IS NOT THE PROVISION OF FINANCI AL SERVICES TO A 10
4550+CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER. 11
4551+
4552+ (C) THIS SUBTITLE MAY NOT BE CONSTRUED TO INTE RFERE WITH THE 12
4553+REGULATION OF THE BU SINESS OF INSURANCE . 13
4554+
4555+36–1507. 14
4556+
4557+ THE STATE MAY NO T COOPERATE OR AID F EDERAL LAW ENFORCEME NT 15
4558+AUTHORITIES ATTEMPTI NG TO PROSECUTE FINA NCIAL INSTITUTIONS T HAT ARE 16
4559+LAWFULLY OPERATING W ITHIN THE CONFINES O F THIS SUBTITLE. 17
4560+
4561+Article – Tax – General 18
4562+
4563+2–1302.2. 19
4564+
4565+ AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–1301 THROUGH 20
4566+2–1302.1 OF THIS SUBTITLE , OF THE SALES AND USE TAX COLLECTED UNDER § 21
4567+11–104(K) OF THIS ARTICLE FROM THE SALE OF CANNABIS FROM A DISPENSARY TO 22
4568+A CONSUMER UNDER TITLE 36, AS DEFINED IN § 1–101 OF THE ALCOHOLIC 23
4569+BEVERAGES AND CANNABIS ARTICLE, THE COMPTROLLER QUARTERLY SHALL 24
4570+DISTRIBUTE: 25
4571+
4572+ (1) TO THE CANNABIS REGULATION AND ENFORCEMENT FUND, 26
4573+ESTABLISHED UNDER § 36–206 OF THE ALCOHOLIC BEVERAGES AND CANNABIS 27
4574+ARTICLE, AN AMOUNT NECESSARY TO DEFRAY THE ENTIRE COST OF T HE 28
4575+OPERATION OF THE CANNABIS REGULATION AND ENFORCEMENT DIVISION 29
4576+OPERATIONS AND ADMIN ISTRATIVE EXPENSES O F THE MARYLAND CANNABIS 30
4577+ADMINISTRATION ESTABLISHED UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES 31
4578+AND CANNABIS ARTICLE; 32
4579+
4580+ (2) AFTER MAKING THE DISTRIBUTION REQUIRED UNDER ITEM (1) OF 33
4581+THIS SECTION: 34
4582+ HOUSE BILL 556 101
4583+
4584+
4585+ (2) (I) 30% 35% TO THE COMMUNITY REINVESTMENT AND REPAIR 1
4586+FUND UNDER § 1–322 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE 2
4587+FOR FISCAL YEARS 2024 THROUGH 2033; 3
4588+
4589+ (3) 1.5% TO COUNTIES AND MUNICIPALITIES , WHICH SHALL BE 4
4590+ALLOCATED TO EACH JU RISDICTION BASED ON THE PERCENTAGE OF RE VENUE 5
4591+COLLECTED FROM THAT JURISDICTION; 6
4592+
4593+ (3) 1.5% OF THE REVENUE COLLE CTED IN EACH COUNTY OUTSIDE 7
4594+THE BOUNDARIES OF A MUNICIPALITY TO THE COUNTY, TO BE USED FOR 8
4595+BEHAVIORAL HEALTH AND DRUG TREATMENT ; 9
4596+
4597+ (4) 1.5% OF THE REVENUE COLLE CTED IN EACH MUNICIP ALITY TO 10
4598+THE MUNICIPALITY , TO BE USED FOR BEHAV IORAL HEALTH AND DRU G TREATMENT ; 11
4599+
4600+ (II) 5% TO COUNTIES, WHICH SHALL BE ALLOC ATED TO EACH 12
4601+COUNTY BASED ON THE PERCENTAGE OF REVENU E COLLECTED FROM THA T COUNTY, 13
4602+EXCEPT THAT A COUNTY SHALL DISTRIBUTE TO A MUNICIPALITY LOCAT ED IN THE 14
4603+COUNTY 50% OF THE ALLOCATION RE CEIVED UNDER THIS IT EM THAT IS 15
4604+ATTRIBUTABLE TO THE SALES AND USE TAX RE VENUE GENERATED BY A DISPENSARY 16
4605+LOCATED IN THAT MUNIC IPALITY; 17
4606+
4607+ (4) (5) (III) 1.5% 5% TO THE CANNABIS PUBLIC HEALTH FUND 18
4608+ESTABLISHED UNDER § 13–4505 OF THE HEALTH – GENERAL ARTICLE; 19
4609+
4610+ (5) (6) (IV) FOR FISCAL YEARS 2024 THROUGH 2028, 1.5% 5% TO 20
4611+THE CANNABIS BUSINESS ASSISTANCE FUND ESTABLISHED UNDER § 5–1901 OF 21
4612+THE ECONOMIC DEVELOPMENT ARTICLE; AND 22
4613+
4614+ (6) (7)(3) ANY BALANCE REMAININ G AFTER THE DISTRIBU TIONS 23
4615+REQUIRED UNDER PARAGRAPHS (1) THROUGH ITEMS (1) AND (2) (5) (6) OF THIS 24
4616+SECTION TO THE GENERAL FUND OF THE STATE. 25
4617+
4618+2–1303. 26
4619+
4620+ After making the distributions required under §§ 2–1301 through [2–1302.1] 27
4621+2–1302.2 of this subtitle, the Comptroller shall pay: 28
4622+
4623+ (1) revenues from the hotel surcharge into the Dorchester County 29
4624+Economic Development Fund established under § 10–130 of the Economic Development 30
4625+Article; 31
4626+ 102 HOUSE BILL 556
4627+
4628+
4629+ (2) to the Blueprint for Maryland’s Future Fund established under § 5–206 1
4630+of the Education Article, the following percentage of the remaining sales and use tax 2
4631+revenues: 3
4632+
4633+ (i) for fiscal year 2023, 9.2%; 4
4634+
4635+ (ii) for fiscal year 2024, 11.0%; 5
4636+
4637+ (iii) for fiscal year 2025, 11.3%; 6
4638+
4639+ (iv) for fiscal year 2026, 11.7%; and 7
4640+
4641+ (v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and 8
4642+
4643+ (3) the remaining sales and use tax revenue into the General Fund of the 9
4644+State. 10
4645+
4646+11–104. 11
4647+
4648+ (K) THE SALES AND USE TAX RATE FOR THE SALE OF CANNABIS FROM A 12
4649+DISPENSARY TO A CONS UMER UNDER TITLE 36, AS DEFINED IN § 1–101 OF THE 13
4650+ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE IS AS FOLLOWS:, FOR FISCAL 14
4651+YEAR 2024 AND EACH FISCAL YEAR THEREAFTER, 9%. 15
4652+
4653+ (1) FOR FISCAL YEAR 2024, 6%; 16
4654+
4655+ (2) FOR FISCAL YEAR 2025, 7%; 17
4656+
4657+ (3) FOR FISCAL YEAR 2026, 8%; 18
4658+
4659+ (4) FOR FISCAL YEAR 2027, 9%; AND 19
4660+
4661+ (5) FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR THEREAFTER , 20
4662+10%. 21
4663+
4664+11–245. 22
4665+
4666+ THE SALES AND USE TAX DOES NOT APPLY TO THE SALE OF : 23
4667+
4668+ (1) MEDICAL CANNABIS UND ER TITLE 36 OF THE ALCOHOLIC 24
4669+BEVERAGES AND CANNABIS ARTICLE; OR 25
4670+
4671+ (2) CANNABIS BETWEEN CAN NABIS ESTABLISHMENTS BUSINESSES 26
4672+THAT ARE LICENSED UN DER TITLE 36 OF THE ALCOHOLIC BEVERAGES AND 27
4673+CANNABIS ARTICLE. 28 HOUSE BILL 556 103
4674+
4675+
4676+
4677+Article – Economic Development 1
4678+
4679+5–1901. 2
4680+
4681+ (a) (1) In this section[,] THE FOLLOWING WORDS HAVE THE MEANINGS 3
4682+INDICATED. 4
4683+
4684+ (2) “Fund” means the Cannabis Business Assistance Fund. 5
4685+
4686+ (3) (I) “PERSONAL NET WORTH ” MEANS THE NET VALUE OF THE 6
4687+ASSETS OF AN INDIVI DUAL REMAINING AFTER TOTAL LIABILITIES AR E DEDUCTED, 7
4688+INCLUDING THE INDIVI DUAL’S SHARE OF ASSETS HE LD JOINTLY OR AS COM MUNITY 8
4689+PROPERTY WITH THE IN DIVIDUAL’S SPOUSE. 9
4690+
4691+ (II) “PERSONAL NET WORTH ” DOES NOT INCLUDE : 10
4692+
4693+ 1. THE INDIVIDUAL ’S OWNERSHIP INTEREST IN THE 11
4694+APPLICANT; 12
4695+
4696+ 2. THE INDIVIDUAL ’S EQUITY IN THE INDI VIDUAL’S 13
4697+PRIMARY PLACE OF RES IDENCE; OR 14
4698+
4699+ 3. THE CASH VALUE OF AN Y QUALIFIED RETIREME NT 15
4700+SAVINGS PLANS OR IND IVIDUAL RETIREMENT A CCOUNTS. 16
4701+
4702+ (b) There is a Cannabis Business Assistance Fund. 17
4703+
4704+ (c) The purpose of the Fund is to assist small, minority –owned, and 18
4705+women–owned businesses entering the adult–use cannabis industry. 19
4706+
4707+ (d) The Department shall administer the Fund. 20
4708+
4709+ (e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 21
4710+the State Finance and Procurement Article. 22
4711+
4712+ (2) The State Treasurer shall hold the Fund separately, and the 23
4713+Comptroller shall account for the Fund. 24
4714+
4715+ (f) The Fund consists of: 25
4716+
4717+ (1) money appropriated in the State budget to the Fund; [and] 26
4718+
4719+ (2) REVENUE DISTRIBUTED TO THE FUND IN ACCORDANCE WI TH § 27
4720+2–1302.2 OF THE TAX – GENERAL ARTICLE; AND 28 104 HOUSE BILL 556
4721+
4722+
4723+
4724+ (3) any other money from any other source accepted for the benefit of the 1
4725+Fund. 2
4726+
4727+ (g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only 3
4728+for: 4
4729+
4730+ (i) grants or loans to small, minority–owned, or women–owned 5
4731+businesses for: 6
4732+
4733+ 1. license application assistance for participation in the 7
4734+adult–use cannabis industry; 8
4735+
4736+ 2. assistance with the operating or capital expenses of a 9
4737+business participating in the adult–use cannabis industry; or 10
4738+
4739+ 3. targeted training to support participation in the adult–use 11
4740+cannabis industry; and 12
4741+
4742+ (ii) grants to historically black colleges and universities for 13
4743+cannabis–related programs and business development organizations, including incubators, 14
4744+to train and assist small, minority, and women business owners and entrepreneurs seeking 15
4745+to become licensed to participate in the adult–use cannabis industry. 16
4746+
4747+ (2) The Department: 17
4748+
4749+ (i) shall prioritize awarding grants and loans in accordance with 18
4750+paragraph (1) of this subsection to: 19
4751+
4752+ 1. populations that have been historically disproportionately 20
4753+impacted by the enforcement of laws criminalizing the use of cannabis; and 21
4754+
4755+ 2. individuals who have been convicted of a violation of a law 22
4756+criminalizing the use of cannabis; and 23
4757+
4758+ 3. SOCIAL EQUITY LICENS EES TO ASSIST WITH 24
4759+START–UP OPERATING AND CAP ITAL FUNDING NEEDS ; AND 25
4760+
4761+ (ii) may not award grants or loans to small, minority, and women 26
4762+business owners and entrepreneurs with a personal net worth exceeding $1,700,000. 27
4763+
4764+ (3) In order to award grants and loans in accordance with paragraph (1) of 28
4765+this subsection, the Department shall develop partnerships with: 29
4766+
4767+ (i) traditional minority–serving institutions in the State and 30
4768+surrounding jurisdictions, including historically black colleges and universities; 31 HOUSE BILL 556 105
4769+
4770+
4771+
4772+ (ii) trade associations representing minority and women–owned 1
4773+businesses; and 2
4774+
4775+ (iii) the Governor’s Office of Small, Minority, and Women Business 3
4776+Affairs. 4
4777+
4778+ (h) (1) The State Treasurer shall invest the money of the Fund in the same 5
4779+manner as other State money may be invested. 6
4780+
4781+ (2) Any interest earnings of the Fund shall be credited to the Fund. 7
4782+
4783+ (i) Expenditures from the Fund may be made only in accordance with the State 8
4784+budget. 9
4785+
4786+Article – State Finance and Procurement 10
4787+
4788+6–201. 11
4789+
4790+ (e) “Financial institution” means: 12
4791+
4792+ (1) any banking institution; 13
4793+
4794+ (2) any national banking association; 14
4795+
4796+ (3) an institution that is incorporated under the laws of any other state as 15
4797+a bank; [and] OR 16
4798+
4799+ (4) an institution that is incorporated under the laws of this State or of the 17
4800+United States as a savings and loan association. 18
4801+
4802+6–226. 19
4803+
4804+ (a) (2) (i) Notwithstanding any other provision of law, and unless 20
4805+inconsistent with a federal law, grant agreement, or other federal requirement or with the 21
4806+terms of a gift or settlement agreement, net interest on all State money allocated by the 22
4807+State Treasurer under this section to special funds or accounts, and otherwise entitled to 23
4808+receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 24
4809+Fund of the State. 25
4810+
4811+ (ii) The provisions of subparagraph (i) of this paragraph do not apply 26
4812+to the following funds: 27
4813+
4814+ 170. the Cannabis Public Health Fund; [and] 28
4815+
4816+ 171. the Community Reinvestment and Repair Fund; 29 106 HOUSE BILL 556
4817+
4818+
4819+
4820+ 172. THE CANNABIS REGULATION AND ENFORCEMENT 1
4821+FUND; AND 2
4822+
4823+ 173. THE MEDICAL CANNABIS COMPASSIONATE USE 3
4824+FUND. 4
4825+
4826+Article – State Personnel and Pensions 5
4827+
4828+23–201. 6
4829+
4830+ (a) Except as provided in subsection (b) of this section, §§ 23–203 through 23–205 7
4831+of this subtitle apply only to: 8
4832+
4833+ (13) an individual who, on and before the effective date of participation as 9
4834+defined under § 31–101(c) of this article, is: 10
4835+
4836+ (i) a supportive service employee of the Board of Education of Kent 11
4837+County; 12
4838+
4839+ (ii) an employee of the Town of Oakland; 13
4840+
4841+ (iii) an employee of the City of Frostburg; 14
4842+
4843+ (iv) an employee of the Town of Sykesville; or 15
4844+
4845+ (v) an employee of the Town of University Park; [and] 16
4846+
4847+ (14) an employee of the Maryland Automobile Insurance Fund on or after 17
4848+the date that the Maryland Automobile Insurance Fund begins participation in the 18
4849+Employees’ Pension System; AND 19
4850+
4851+ (15) THE EXECUTIVE DIRECTOR OF THE ALCOHOL, TOBACCO, AND 20
4852+CANNABIS COMMISSION, IF THE EXECUTIVE DIRECTOR IS NOT A SWO RN POLICE 21
4853+OFFICER WITH THE POW ERS GRANTED TO AN OF FICER OF THE FIELD 22
4854+ENFORCEMENT DIVISION UNDER § 1–313 OF THE ALCOHOLIC BEVERAGES AND 23
4855+CANNABIS ARTICLE. 24
4856+
4857+26–201. 25
4858+
4859+ (a) Except as provided in subsection (b) of this section, this subtitle applies only 26
4860+to: 27
4861+
4862+ (22) the Executive Director of the Alcohol [and], Tobacco, AND CANNABIS 28
4863+Commission, ONLY IF THE EXECUTIVE DIRECTOR IS A SWORN P OLICE OFFICER WITH 29
4864+THE POWERS GRANTED T O AN OFFICER OR EMPL OYEE OF THE FIELD 30 HOUSE BILL 556 107
4865+
4866+
4867+ENFORCEMENT DIVISION UNDER § 1–313 OF THE ALCOHOLIC BEVERAGES AND 1
4868+CANNABIS ARTICLE. 2
4869+
4870+Article – Health – General 3
4871+
4872+13–4505. 4
4873+
4874+ (a) There is a Cannabis Public Health Fund. 5
4875+
4876+ (b) The purpose of the Fund is to provide funding to address the health effects 6
4877+associated with the legalization of adult–use cannabis. 7
4878+
4879+ (c) The Department shall administer the Fund. 8
4880+
4881+ (d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 9
4882+the State Finance and Procurement Article. 10
4883+
4884+ (2) The State Treasurer shall hold the Fund separately, and the 11
4885+Comptroller shall account for the Fund. 12
4886+
4887+ (e) The Fund consists of: 13
4888+
4889+ (1) Revenue distributed to the Fund based on revenues from adult–use 14
4890+cannabis; 15
4891+
4892+ (2) Money appropriated in the State budget to the Fund; [and] 16
4893+
4894+ (3) REVENUE DISTRIBUTED T O THE FUND IN ACCORDANCE WI TH § 17
4895+2–1302.2 OF THE TAX – GENERAL ARTICLE; AND 18
4896+
4897+ [(3)] (4) Any other money from any other source accepted for the benefit 19
4898+of the Fund. 20
4899+
4900+ (f) The Fund may be used only for: 21
4901+
4902+ (1) Supporting the Advisory Council in performing its duties; 22
4903+
4904+ (2) Supporting data collection and research on the effects of cannabis 23
4905+legalization in the State; 24
4906+
4907+ (3) Providing funding for education and public awareness campaigns 25
4908+related to cannabis use, including funding for educational programs to be used in schools; 26
4909+
4910+ (4) Supporting substance use disorder counseling and treatment for 27
4911+individuals; 28
4912+ 108 HOUSE BILL 556
4913+
4914+
4915+ (5) Training and equipment for law enforcement to recognize impairments 1
4916+due to cannabis; and 2
4917+
4918+ (6) Purchasing technology proven to be effective at measuring cannabis 3
4919+levels in drivers. 4
4920+
4921+ (g) (1) The State Treasurer shall invest the money of the Fund in the same 5
4922+manner as other State money may be invested. 6
4923+
4924+ (2) Any interest earnings of the Fund shall be credited to the Fund. 7
4925+
4926+ (h) Expenditures from the Fund may be made only in accordance with the State 8
4927+budget. 9
4928+
4929+ SECTION 5. 6. AND BE IT FURTHER ENACTED, That Article – Alcoholic 10
4930+Beverages of the Annotated Code of Maryland be renamed to be Article – Alcoholic 11
4931+Beverages and Cannabis. 12
4932+
4933+ SECTION 6. 7. AND BE IT FURTHER ENACTED, That: 13
4934+
4935+ (a) The transfer of the Maryland Medical Cannabis Commission personnel to the 14
4936+Alcohol, Tobacco, and Cannabis Commission Maryland Cannabis Administration to 15
4937+oversee the regulation of cannabis under this Act shall be conducted in a manner that will 16
4938+minimize the costs of the transfer and will result in a more cost–efficient operation for the 17
4939+regulation of cannabis for the protection of the public health, safety, and welfare of the 18
4940+State. 19
4941+
4942+ (b) The Cannabis Regulation and Enforcement Division of the Office of the 20
4943+Executive Director of the Alcohol, Tobacco, and Cannabis Commission is the successor of 21
4944+the Maryland Medical Cannabis Commission in matters concerning the regulation of 22
4945+medical cannabis. 23
4946+
4947+ (b) The Maryland Cannabis Administration is the successor of the Maryland 24
4948+Medical Cannabis Commission in matters concerning the regulation of medical cannabis. 25
4949+
4950+ (c) In every law, executive order, rule, regulation, policy, or document created by 26
4951+an official, an employee, or a unit of this State, the names and titles of those agencies and 27
4952+officials mean the names and titles of the successor agency or official. 28
4953+
4954+ SECTION 7. 8. AND BE IT FURTHER ENACTED, That all persons who, as of June 29
4955+30, 2023 the effective date of this Act, are merit employees or contract staff in budgeted 30
4956+positions of the Maryland Medical Cannabis Commission and whose positions are 31
4957+transferred to the Cannabis Regulation and Enforcement Division of the Office of the 32
4958+Executive Director of the Alcohol, Tobacco, and Cannabis Commission to oversee, the 33
4959+regulation of cannabis provided by this Act, are hereby transferred to the Cannabis 34
4960+Regulation and Enforcement Division of the Office of the Executive Director of the Alcohol, 35
4961+Tobacco, and Cannabis Commission Maryland Cannabis Administration to oversee, the 36 HOUSE BILL 556 109
4962+
4963+
4964+regulation of cannabis provided by this Act, are hereby transferred to the Maryland 1
4965+Cannabis Administration without any change or loss of rights, pay, working conditions, 2
4966+benefits, rights, or status, and shall retain any merit system and retirement status they 3
4967+may have on the date of transfer. 4
4968+
4969+ SECTION 8. 9. AND BE IT FURTHER ENACTED, That the balance of the Natalie 5
4970+M. LaPrade Medical Cannabis Fund on the date immediately preceding the date this Act 6
4971+takes effect shall be credited to the Cannabis Regulation and Enforcement Fund, and that 7
4972+any funds credited to the Cannabis Regulation and Enforcement Fund may be used to cover 8
4973+the costs of implementing this Act and regulating the cannabis industry in Maryland. 9
4974+
4975+ SECTION 9. 10. AND BE IT FURTHER ENACTED, That, notwithstanding any 10
4976+other provision of law, from the date this Act takes effect to December 31, 2023, both 11
4977+inclusive, the Commission Maryland Cannabis Administration is exempt from 12
4978+procurement requirements under the State Finance and Procurement Article if the 13
4979+procurement is for: 14
4980+
4981+ (1) banking services for the Cannabis Regulation and Enforcement 15
4982+Division Administration to collect fees and tax revenue; 16
4983+
4984+ (2) banking services to help support cannabis businesses to transition from 17
4985+an all cash system; 18
4986+
4987+ (3) a consultant to support the Cannabis Regulation and Enforcement 19
4988+Division Administration in the process for cannabis licensure, including services related to 20
4989+investigations and the financial or criminal history review of applicants; and 21
4990+
4991+ (4) a consultant to provide technical assistance to social equity applicants; 22
4992+and 23
4993+
4994+ (5) communication services for public and consumer education campaigns 24
4995+on cannabis laws and regulations and potential health and safety risks associated with 25
4996+cannabis use; and 26
4997+
4998+ (5) (6) establishing a State cannabis testing laboratory at a preexisting site. 27
4999+
5000+ SECTION 10. 11. AND BE IT FURTHER ENACTED, That: 28
5001+
5002+ (a) To the extent practicable and authorized by the U.S. Constitution, a cannabis 29
5003+licensee shall comply with the State’s Minority Business Enterprise Program. 30
5004+
5005+ (b) On or before 6 months after the issuance of a cannabis license under § 36–401 31
5006+of the Alcoholic Beverages and Cannabis Article, the Governor’s Office of Small, Minority, 32
5007+and Women Business Affairs, in consultation with the Office of the Attorney General and 33
5008+the Office of Social Equity within the Alcohol, Tobacco, and Cannabis Commission and the 34
5009+cannabis licensee, shall establish a clear plan for setting reasonable and appropriate 35
5010+minority business enterprise participation goals and procedures for the procurement of 36 110 HOUSE BILL 556
5011+
5012+
5013+goods and services related to cannabis, including the cultivation, manufacturing, and 1
5014+dispensing of cannabis. 2
5015+
5016+ (c) To the extent practicable, the goals and procedures specified in subsection (b) 3
5017+of this section shall be based on the requirements of Title 14, Subtitle 3 of the State Finance 4
5018+and Procurement Article and the regulations implementing that subtitle. 5
5019+
5020+ SECTION 11. 12. AND BE IT FURTHER ENACTED, That: 6
5021+
5022+ (a) (1) As soon as practicable after the effective date of this Act, the Cannabis 7
5023+Regulation and Enforcement Division Maryland Cannabis Administration established 8
5024+under § 36–201 of the Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 9
5025+of this Act, shall issue a license to shall, by regulation, establish a process for issuing up to 10
5026+five grower licenses to operate as a cannabis grower under Title 36, Subtitle 4 of the 11
5027+Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 of this Act, to one 12
5028+applicant five applicants that: 13
5029+
5030+ (1) is a are recognized class member members of Pigford v. Glickman, 185 14
5031+F.R.D. 82 (D.D.C. 1999), or In Re Black Farmers Litig., 856 F. Supp. 2d 1 (D.D.C. 2011).; 15
5032+
5033+ (2) were awarded damages pursuant to the claims processes established for 16
5034+class members of Pigford v. Glickman or In Re Black Farmers Litig. and those damages 17
5035+were related to farming operations in Maryland; 18
5036+
5037+ (3) have provided evidence, suitable to the Administration and consistent 19
5038+with constitutional and federal requirements, that they have not been fully compensated for 20
5039+the discrimination they have endured and that they have experienced ongoing 21
5040+discrimination or the continued effects of past discrimination; and 22
5041+
5042+ (4) satisfy any other criteria established by the Administration. 23
5043+
5044+ (2) An applicant awarded a license under paragraph (1) of this subsection 24
5045+may subsequently apply for and be awarded a license to operate as a cannabis processor 25
5046+under Title 36, Subtitle 4 of the Alcoholic Beverages and Cannabis Article, as enacted by 26
5047+Section 4 5 of this Act. 27
5048+
5049+ (b) Notwithstanding any other provision of law, a license issued under subsection 28
5050+(a) of this section is in addition to and not subject to the limitations on the total number of 29
5051+licenses that the Division Administration may issue under Title 36, Subtitle 4 of the 30
5052+Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 of this Act. 31
5053+
5054+ (c) If an applicant for a license to operate as a cannabis grower that is a 32
5055+recognized class member is not awarded a license under subsection (a) of this section: 33
5056+
5057+ (1) the applicant may apply for a license in accordance with the provisions 34
5058+of Title 36 of the Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 of 35
5059+this Act; 36 HOUSE BILL 556 111
5060+
5061+
5062+
5063+ (2) the Division Administration shall allow the applicant to amend, if 1
5064+necessary, and resubmit the applicant’s application or withdraw the application entirely; 2
5065+and 3
5066+
5067+ (3) the Division Administration may waive the initial application fee for 4
5068+the applicant but may charge the applicant a reasonable fee for the resubmission or an 5
5069+unamended or amended application. 6
5070+
5071+ SECTION 13. 12. AND BE IT FURTHER ENACTED, That: 7
5072+
5073+ (a) As soon as practicable after the effective date of this Act, the Alcohol, Tobacco, 8
5074+and Cannabis Commission Maryland Cannabis Administration shall contract with an 9
5075+independent consultant to complete a study on wholesale cannabis licenses. 10
5076+
5077+ (b) The study shall include: 11
5078+
5079+ (1) the costs to regulate wholesale cannabis licenses; 12
5080+
5081+ (2) whether there is market necessity for wholesale cannabis licensing; 13
5082+
5083+ (3) whether there is a need for wholesale cannabis licensing to alleviate 14
5084+supply demand and facilitate an equitable marketplace for suppliers and retailers; and 15
5085+
5086+ (4) the approximate number of wholesale cannabis licenses appropriate for 16
5087+the size of the marketplace in the State. 17
5088+
5089+ (c) On or before June 1, 2024, the Alcohol, Tobacco, and Cannabis Commission 18
5090+Maryland Cannabis Administration shall submit the results of the study required under 19
5091+subsection (a) of this section to the Governor and, in accordance with § 2–1257 of the State 20
5092+Government Article, the General Assembly. 21
5093+
5094+ SECTION 14. 13. AND BE IT FURTHER ENACTED, That: 22
5095+
5096+ (a) The Maryland Economic Development Corporation shall identify in each of 23
5097+the following locations a site for proposed use as incubator space, to be established in 24
5098+accordance with § 36–406 of the Alcoholic Beverages and Cannabis Article, as enacted by 25
5099+Section 5 of this Act: 26
5100+
5101+ (1) Caroline County, Cecil County, Dorchester County, Kent County, 27
5102+Queen Anne’s County, Somerset County, Talbot County, Wicomico County, or Worcester 28
5103+County; 29
5104+
5105+ (2) Allegany County, Garrett County, or Washington County; 30
5106+
5107+ (3) Baltimore City or a beltway community located in Anne Arundel 31
5108+County or Baltimore County; and 32 112 HOUSE BILL 556
5109+
5110+
5111+
5112+ (4) a beltway community located in Montgomery County or Prince George’s 1
5113+County. 2
5114+
5115+ (b) The site identifications shall include: 3
5116+
5117+ (1) the proposed locations for incubator spaces identified under subsection 4
5118+(a) of this section; 5
5119+
5120+ (2) the square footage of the identified locations; and 6
5121+
5122+ (3) the estimated costs for construction or renovation of the proposed 7
5123+location to prepare it for use as an incubator space. 8
5124+
5125+ (c) In evaluating sites for proposed use as incubator spaces, the Maryland 9
5126+Economic Development Corporation shall consider, in addition to other appropriate 10
5127+criteria, the suitability of converting to incubator space obsolete or underutilized 11
5128+commercial and retail properties such as enclosed malls, big box stores, and warehouse 12
5129+spaces. 13
5130+
5131+ (d) On or before January 1, 2024, the Maryland Economic Development 14
5132+Corporation shall submit a report on the identified sites and the qualifying criteria required 15
5133+by this section to the Governor and, in accordance with § 2–1257 of the State Government 16
5134+Article, the General Assembly. 17
5135+
5136+ SECTION 15. 14. AND BE IT FURTHER ENACTED, That: 18
5137+
5138+ (a) As soon as practicable after the effective date of this Act, the Alcohol, Tobacco, 19
5139+and Cannabis Commission Maryland Cannabis Administration shall conduct a study on 20
5140+on–site consumption of cannabis and cannabis products at retail premises of cannabis 21
5141+licensees. 22
5142+
5143+ (b) The study shall include: 23
5144+
5145+ (1) a survey of regulations and trade practices for on–site consumption of 24
5146+cannabis and cannabis products in other states and countries; 25
5147+
5148+ (2) authorizations and restrictions for the use of cannabis distributed at 26
5149+cannabis premises and for the removal of unconsumed cannabis or cannabis products from 27
5150+the premises; 28
5151+
5152+ (3) operational procedures and controls for on–site consumption premises 29
5153+and the preparation, use, and consumption of cannabis and cannabis products; 30
5154+
5155+ (4) training requirements and safeguards for employees of premises with 31
5156+on–site consumption of cannabis and cannabis products; and 32
5157+ HOUSE BILL 556 113
5158+
5159+
5160+ (5) recommendations for policies to implement on–site consumption of 1
5161+cannabis and cannabis products at suitable locations, including suggested legislative and 2
5162+regulatory changes. 3
5163+
5164+ (c) The Commission Administration may contract with an independent 4
5165+contractor to conduct the study under this section. 5
5166+
5167+ (d) On or before June 1, 2024, the Alcohol, Tobacco, and Cannabis Commission 6
5168+Maryland Cannabis Administration shall submit the results of the study required under 7
5169+subsection (a) of this section to the Governor and, in accordance with § 2–1257 of the State 8
5170+Government Article, the General Assembly. 9
5171+
5172+ SECTION 16. AND BE IT FURTHER ENACTED, That: 10
5173+
5174+ (a) The Alcohol, Tobacco, and Cannabis Commission shall study: 11
5175+
5176+ (1) types of cannabis products and cannabis–infused products that are not 12
5177+meant to be smoked and that are available in neighboring states and other jurisdictions, 13
5178+such as low–concentration edibles, cannabis–infused soft drinks and other beverages, and 14
5179+related products; 15
5180+
5181+ (2) issues relating to processing, packaging, labeling, and use of these 16
5182+cannabis products as they may be introduced into the Maryland adult–use cannabis 17
5183+regulatory system; and 18
5184+
5185+ (3) regulatory and enforcement issues that may arise from the introduction 19
5186+and availability of these cannabis products in Maryland. 20
5187+
5188+ (b) On or before July 1, 2024, the Commission shall submit a report, including 21
5189+any proposed legislative or regulatory changes, to the Governor and, in accordance with § 22
5190+2–1257 of the State Government Article, the Senate Finance Committee and the House 23
5191+Economic Matters Committee. 24
5192+
5193+ SECTION 15. AND BE IT FURTHER ENACTED, That: 25
5194+
5195+ (a) This section applies only to a business awarded a grower license under § 9 of 26
5196+Chapter 598 of the Acts of the General Assembly of 2018 that does not hold a cannabis 27
5197+dispensary license. 28
5198+
5199+ (b) (1) A licensed grower subject to this section may apply to the Maryland 29
5200+Cannabis Administration for and be awarded a standard dispensary license established 30
5201+under § 36–401(c)(1)(iii) of the Alcoholic Beverages and Cannabis Article as enacted by 31
5202+Section 5 of this Act. 32
5203+
5204+ (2) If the licensed grower meets the minimum qualifications as determined 33
5205+by the Maryland Cannabis Ad ministration for a standard dispensary license, the 34
5206+Administration shall award the grower a standard dispensary license. 35 114 HOUSE BILL 556
5207+
5208+
5209+
5210+ SECTION 16. AND BE IT FURTHER ENACTED, That, notwithstanding any other 1
5211+provision of law, on or before June 30, 2024, the Governor may transfer to the Maryland 2
5212+Cannabis Administration established under § 36–201 of the Alcoholic Beverages and 3
5213+Cannabis Article, as enacted by Section 5 of this Act, any positions and the associated funds, 4
5214+and any amount of the unexpended appropriation under the Alcohol and Tobacco 5
5215+Commission – Administration and Enforcement (E17A01.01), Alcohol and Tobacco 6
5216+Commission – Shared Services (E17A01.02), and Alcohol and Tobacco Commission – 7
5217+Cannabis Regulatory and Enforcement Division (E17A01.03) that was included in the fiscal 8
5218+year 2024 operating budget (House Bill 200 of the Acts of 2023). 9
5219+
5220+ SECTION 17. AND BE IT FURTHER ENACTED, That, as soon as practicable after 10
5221+the effective date of this Act, the Alcohol, Tobacco, and Cannabis Commission and the 11
5222+Maryland Cannabis Administration shall enter into a memorandum of understanding that 12
5223+provides that both parties agree to collaborate in order to enforce the provisions of this Act 13
5224+with respect to unlicensed cannabis operations in the State. 14
5225+
5226+ SECTION 18. AND BE IT FURTHER ENACTED, That notwithstanding § 15
5227+1–309(c)(1) of the Alcoholic Beverages and Cannabis Article, as enacted by Section 5 of this 16
5228+Act, an individual serving as the Executive Director of the Alcohol and Tobacco Commission 17
5229+on the effective date of this Act may continue to serve as the Executive Director of the Alcohol, 18
5230+Tobacco, and Cannabis Commission. 19
5231+
5232+ SECTION 12. 17. 19. AND BE IT FURTHER ENACTED, That the publisher of the 20
5233+Annotated Code of Maryland, in consultation with and subject to the approval of the 21
5234+Department of Legislative Services, shall correct, with no further action required by the 22
5235+General Assembly, cross–references and terminology rendered incorrect by this Act. The 23
5236+publisher shall adequately describe any correction that is made in an editor’s note following 24
5237+the section affected. 25
5238+
5239+ SECTION 13. 18. 20. AND BE IT FURTHER ENACTED, That this Act is an 26
5240+emergency measure, is necessary for the immediate preservation of the public health or 27
5241+safety, has been passed by a yea and nay vote supported by three–fifths of all the members 28
5242+elected to each of the two Houses of the General Assembly, and shall take effect from the 29
5243+date it is enacted. 30
5244+
5245+
5246+