WES MOORE, Governor Ch. 254
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Chapter 254
(House Bill 556)
AN ACT concerning
Cannabis Reform
FOR the purpose of renaming the Alcohol and Tobacco Commission to be the Alcohol,
Tobacco, and Cannabis Commission; establishing the Maryland Cannabis
Administration as an independent unit of State government; establishing a
regulatory and licensing system for adult–use cannabis under the Commission
Administration; imposing the sales and use tax on the sale of adult–use cannabis at
certain rates in certain fiscal years at a certain rate; establishing the Office of Social
Equity, in the Maryland Cannabis Commission and the Advisory Board on Medical
and Adult–Use Cannabis, and the Social Equity Partnership Grant Fund in the
Commission; altering provisions of law relating to the Community Reinvestment and
Repair Fund; establishing the Cannabis Regulation and Enforcement Division as an
independent unit in the Commission; requiring the Division Administration to
establish and maintain a State cannabis testing laboratory; establishing the
Cannabis Regulation and Enforcement Fund as a special, nonlapsing fund; requiring
that the investment earnings of the Cannabis Regulation and Enforcement Fund be
credited to the Fund; repealing certain provisions of law establishing and governing
the Natalie M. LaPrade Medical Cannabis Commission; requiring the Division
Administration, rather than the Natalie M. LaPrade Medical Cannabis Commission,
to take certain actions related to medical cannabis; requiring the Division
Administration, on or before a certain date and under certain circumstances, to
convert medical cannabis licenses to licenses to operate a medical and adult–use
cannabis business; regulating the actions that local jurisdictions political
subdivisions may take regarding cannabis businesses; prohibiting certain
individuals from taking certain actions related to cannabis licensees and registrants;
establishing the Medical Cannabis Compassionate Use Fund as a special, nonlapsing
fund; requiring that the interest earnings of the Medical Cannabis Compassionate
Use Fund be credited to the Fund; authorizing certain entities to register with the
Division Administration to purchase cannabis for research purposes; establishing
prohibitions related to the advertising of cannabis and cannabis products; requiring
a person to be approved by the Division Administration to offer a certain training
program; establishing certain legal protections related to the use of cannabis;
establishing a Capital Access Program in the Department of Commerce; establishing
certain prohibitions related to banking by cannabis businesses; altering certain
provisions of law relating to the Cannabis Business Assistance Fund; exempting the
Commission from State procurement requirements under certain circumstances;
requiring a cannabis licensee, under certain circumstances, to comply with the
State’s Minority Business Enterprise Program; requiring the Commission to contract
with an independent consultant to complete a study on wholesale cannabis licenses;
requiring the study to be submitted to certain persons on or before a certain date;
requiring the Maryland Economic Development Corporation to identify certain Ch. 254 2023 LAWS OF MARYLAND
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locations and submit a certain report to the General Assembly; requiring the
Commission to study and report on certain matters relating to on–site consumption
and certain cannabis products; requiring the Administration to contract with an
independent consultant to complete a study on wholesale cannabis licenses; requiring
the study to be submitted to certain persons on or before a certain date; requiring the
Maryland Economic Development Corporation to identify certain locations and
submit a certain report to the General Assembly; requiring the Administration to
study and report on certain matters relating to on–site consumption; requiring that
certain growers be awarded certain dispensary licenses under certain circumstances;
and generally relating to medical and adult–use cannabis.
BY repealing
Article – Health – General
Section 13–3301 through 13–3316 and the subtitle “Subtitle 33. Natalie M. LaPrade
Medical Cannabis Commission”
Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
BY repealing
Article – Health – General
The subtitle designation “Subtitle 46. Community Reinvestment and Repair Fund”
immediately preceding Section 13–4601
Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
(As enacted by Chapter 26 of the Acts of the General Assembly of 2022)
BY transferring
Article – Health – General
Section 13–4601
Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
(As enacted by Chapter 26 of the Acts of the General Assembly of 2022)
to be
Article – Alcoholic Beverages
Section 1–322
Annotated Code of Maryland
(2016 Volume and 2022 Supplement)
BY renumbering
Article – Alcoholic Beverages
Section 1–101(d) through (y) and (z) through (ii)
to be Section 1–101(e) through (z) and (bb) through (kk), respectively
Annotated Code of Maryland
(2016 Volume and 2022 Supplement)
BY repealing and reenacting, without amendments, WES MOORE, Governor Ch. 254
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Article – Alcoholic Beverages
Section 1–101(a)
Annotated Code of Maryland
(2016 Volume and 2022 Supplement)
BY adding to
Article – Alcoholic Beverages
Section 1–101(d) and (aa), 1–309.1, 1–309.2, and 1–323; and 36–101 through
36–1507 to be under the new division “Division III. Cannabis”
Annotated Code of Maryland
(2016 Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – Alcoholic Beverages
Section 1–101(g) and (r)
Annotated Code of Maryland
(2016 Volume and 2022 Supplement)
(As enacted by Section 4 of this Act)
BY repealing and reenacting, with amendments,
Article – Alcoholic Beverages
Section 1–101(f) and (q) 1–202; and 1–302, 1–303(a), 1–304, 1–307 through 1–310,
and 1–313 to be under the amended subtitle “Subtitle 3. Alcohol, Tobacco, and
Cannabis Commission”
Annotated Code of Maryland
(2016 Volume and 2022 Supplement)
BY adding to
Article – Alcoholic Beverages
Section 1–309.1, 1–309.2, and 1–323; and 36–101 through 36–1507 to be under the
new division “Division III. Cannabis”
Annotated Code of Maryland
(2016 Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – Alcoholic Beverages
Section 1–322
Annotated Code of Maryland
(2016 Volume and 2022 Supplement)
(As enacted by Section 3 of this Act)
BY adding to
Article – Tax – General
Section 2–1302.2, 11–104(k), and 11–245
Annotated Code of Maryland
(2022 Replacement Volume) Ch. 254 2023 LAWS OF MARYLAND
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BY repealing and reenacting, with amendments,
Article – Tax – General
Section 2–1303
Annotated Code of Maryland
(2022 Replacement Volume)
BY repealing and reenacting, with amendments,
Article – Economic Development
Section 5–1901
Annotated Code of Maryland
(2018 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, without amendments,
Article – State Finance and Procurement
Section 6–226(a)(2)(i)
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – State Finance and Procurement
Section 6–201(e) and 6–226(a)(2)(ii)170. and 171.
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement)
BY adding to
Article – State Finance and Procurement
Section 6–226(a)(2)(ii)172. and 173.
Annotated Code of Maryland
(2021 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – State Personnel and Pensions
Section 23–201(a)(13) and (14) and 26–201(a)(22)
Annotated Code of Maryland
(2015 Replacement Volume and 2022 Supplement)
BY adding to
Article – State Personnel and Pensions
Section 23–201(a)(15)
Annotated Code of Maryland
(2015 Replacement Volume and 2022 Supplement)
BY repealing and reenacting, with amendments,
Article – Health – General
Section 13–4505 WES MOORE, Governor Ch. 254
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Annotated Code of Maryland
(2019 Replacement Volume and 2022 Supplement)
BY renaming
Article – Alcoholic Beverages
to be Article – Alcoholic Beverages and Cannabis
Annotated Code of Maryland
(2016 Volume and 2022 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That Section(s) 13–3301 through 13–3316 and the subtitle “Subtitle 33. Natalie M. LaPrade
Medical Cannabis Commission” of Article – Health – General of the Annotated Code of
Maryland be repealed.
SECTION 2. AND BE IT FURTHER ENACTED, That the subtitle design ation
“Subtitle 46. Community Reinvestment and Repair Fund” immediately preceding §
13–4601 of the Health – General Article be repealed.
SECTION 3. AND BE IT FURTHER ENACTED, That Section(s) 13 –4601 of Article
– Health – General of the Annotated Code of Maryland be transferred to be Section(s)
1–322 of Article – Alcoholic Beverages of the Annotated Code of Maryland.
SECTION 4. AND BE IT FURTHER ENACTED, That Section(s) 1 –101(d) through
(y) and (z) through (ii) of Article – Alcoholic Beverages of the Annotated Code of Maryland
be renumbered to be Section(s) 1–101(e) through (z) and (bb) through (kk), respectively.
SECTION 5. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Alcoholic Beverages
1–101.
(a) In this article the following words have the meanings indicated.
(D) (1) “CANNABIS” MEANS THE PLANT CANNABIS SATIVA L. AND ANY
PART OF THE PLANT , INCLUDING ALL DERIVA TIVES, EXTRACTS, CANNABINOIDS ,
ISOMERS, ACIDS, SALTS, AND SALTS OF ISOMERS , WHETHER GROWING OR N OT, WITH
A DELTA–9–TETRAHYDROCANNABINOL CONCENTRATION GREATE R THAN 0.3% ON A
DRY WEIGHT BASIS .
(2) “CANNABIS” INCLUDES CANNABIS PR ODUCTS.
(3) “CANNABIS” DOES NOT INCLUDE HEM P OR HEMP PRODUCTS , AS
DEFINED IN § 14–101 OF THE AGRICULTURE ARTICLE.
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(f) (g) “Commission” means the Alcohol [and], Tobacco, AND CANNABIS
Commission.
(q) (r) (1) “License holder” means the holder of [a] AN ALCOHOLIC BEVERAGE
BEVERAGES license issued or a permit granted under this article.
(2) “License holder” includes:
(i) a county liquor control board and a county dispensary; and
(ii) for the delivery and billing purposes of Title 2, Subtitle 3 and §§
2–213 and 2–314 of this article, a corporation on behalf of which an individual has obtained
a license.
(AA) “POLITICAL SUBDIVISION” MEANS A COUNTY OR A MUNICIPALITY.
1–202.
(a) To the extent that a statement of a general rule of law conflicts or is
inconsistent with an exception or a qualification applicable to a special area, particular
person, or set of circumstances, the exception or qualification prevails.
(b) A provision in Division II of this article prevails over a conflicting or
inconsistent provision in Division I of this article or a provision in the Tax – General Article
relating to alcoholic beverages.
(C) A PROVISION IN DIVISION III OF THIS ARTICLE PREV AILS OVER A
CONFLICTING OR INCON SISTENT PROVISION IN DIVISION I OF THIS ARTICLE OR A
PROVISION IN THE TAX – GENERAL ARTICLE RELATING TO C ANNABIS.
Subtitle 3. Alcohol [and], Tobacco, AND CANNABIS Commission.
1–302.
There is an Alcohol [and], Tobacco, AND CANNABIS Commission.
1–303.
(a) (1) The Commission consists of [five] SEVEN members to be appointed by
the Governor with the advice and consent of the Senate.
(2) The presiding officer of either House of the General Assembly may
recommend to the Governor a list of individuals for appointment to the Commission.
(3) Of the Commission members: WES MOORE, Governor Ch. 254
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(i) one shall be knowledgeable and experienced in public health
matters;
(ii) one shall be knowledgeable and experienced in law enforcement
matters;
(iii) one shall be knowledgeable and experienced in the alcoholic
beverages industry; [and]
(IV) TWO SHALL BE KNOWLED GEABLE AND EXPERIENC ED IN
THE CANNABIS INDUSTR Y ONE SHALL HAVE EXPER TISE IN CANNABIS RESEARCH AN D
POLICY;
(V) ONE SHALL HAVE EXPER TISE IN ALCOHOL AND TOBACCO
POLICY; AND
[(iv)] (V) (VI) two shall be members of the public who are
knowledgeable and experienced in fiscal matters and shall have substantial experience:
1. as an executive with fiduciary responsibilities in charge of
a large organization or foundation;
2. in an academic field relating to finance or economics; or
3. as an accountant, an economist, or a financial analyst.
(4) In addition to the members appointed under paragraph (3) of this
subsection, the Secretary of Health and the Secretary of State Police, or their designees,
may participate in the Commission as ex officio nonvoting members.
1–304.
(a) A member of the Commission may not:
(1) have a direct or indirect financial interest, ownership, or management,
including holding any stocks, bonds, or other similar financial interests, in the alcohol [or],
tobacco, OR CANNABIS industries;
(2) have an official relationship to a person who holds a license or permit
under this article or Title 16, Title 16.5, Title 16.7, or Title 16.9 of the Business Regulation
Article;
(3) be an elected official;
Ch. 254 2023 LAWS OF MARYLAND
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(4) receive or share in, directly or indirectly, the receipts or proceeds of any
activities conducted in the alcohol [or], tobacco, OR CANNABIS industries;
(5) have a beneficial interest in any contract for the manufacture or sale of
any device or product or the provision of any independent consulting services in connection
with a holder of a license or permit issued under this article or Title 16, Title 16.5, Title
16.7, or Title 16.9 of the Business Regulation Article; or
(6) accept a contribution of money or property worth at least $100 from an
entity or individual associated with the alcohol [or], tobacco, OR CANNABIS industries with
respect to the regulation of alcohol [or], tobacco, OR CANNABIS.
(b) A member of the Commission shall file a financial disclosure statement with
the State Ethics Commission in accordance with Title 5, Subtitle 6 of the General
Provisions Article.
1–307.
(a) The Commission has the powers and duties set forth in this section.
(b) The Commission shall:
(1) educate the public, by resource sharing and serving as an information
clearinghouse, on such topics as:
(i) recent increases in alcohol content for popular beer and other
beverages;
(ii) the proper limits of drinking for adults;
(iii) the adverse consequences of surpassing those limits;
(iv) parental or adult responsibility for serving alcohol to underage
individuals; and
(v) comparable topics relating to smoking, vaping, tobacco, other
tobacco products, [and] electronic nicotine delivery systems, CANNABIS, AND CANNABIS
PRODUCTS; and
(2) subject to federal approval, ensure that all alcoholic beverages sold in
the State with an alcohol content exceeding 4.5% by volume bear a large and conspicuous
label stating the percentage of alcohol content.
(c) (1) The Commission shall conduct studies of:
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(i) the operation and administration of similar laws in other states
or countries; and
(ii) federal laws that may affect the operation of the alcohol [or],
tobacco, OR CANNABIS industries, the literature on those industries, and the reaction of
residents of the State to existing and potential features of those industries.
(2) The Commission shall submit to the Governor and, in accordance with
§ 2–1257 of the State Government Article, the General Assembly the studies required under
this subsection.
1–308.
The Commission shall develop best practices for:
(1) the dedication of a minimum effective portion of the budget of a local
licensing board to administrative enforcement activities, such as inspections, compliance
checks, overservice, operations, and trade practice violations;
(2) the carrying out of compliance checks for alcoholic beverages licenses,
in which each license is checked at least once a year;
(3) the development of guidelines for the minimum capacity of inspections
carried out by inspectors of local licensing boards, based on the number and type of licensed
outlets in the licensing jurisdiction;
(4) ensuring that alcoholic beverages inspections be based on data such as
the violation history of the license holder, and calls for emergency assistance, emergency
medical service, or nonemergency service, so that resources are being allocated based on
where the greatest need is;
(5) the reporting of aggregate data between local police and local licensing
boards;
(6) the development of mandatory State–provided training for liquor
inspectors;
(7) reporting by the State to the affected local licensing board of a
State–issued license or permit within 10 days after the State receives an application;
(8) the development of a public health impact statement for all changes to
the State alcoholic beverages laws; [and]
(9) ensuring that:
Ch. 254 2023 LAWS OF MARYLAND
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(i) all license holders, managers, and servers receive certification
from an approved alcohol awareness program; and
(ii) at least one employee who is certified in an alcohol awareness
program be on the licensed premises at all times when alcoholic beverages are served;
(10) REGULATING THE CANNA BIS INDUSTRY AND IMP LEMENTING
PUBLIC HEALTH MEASUR ES RELATING TO CANNA BIS; AND
(11) REGULATING , TO THE EXTENT POSSIBLE, MEDICAL AND
ADULT–USE CANNABIS IN A SI MILAR MANNER .
1–309.
(a) With the advice and consent of the Senate, the Governor shall appoint an
Executive Director of the Commission.
(b) The Executive Director serves at the pleasure of the Governor.
(c) The Executive Director shall:
(1) have the training and experience, including knowledge of the Maryland
alcohol, TOBACCO, AND CANNABIS regulatory system, that is needed to direct the work of
the Commission; AND
(2) be a sworn police officer with the powers granted to an officer or
employee of the Field Enforcement Division under § 1–313 of this subtitle; and
(3) devote full time to the duties of office and may not engage in another
profession or occupation.
(d) THE EXECUTIVE DIRECTOR MAY B E A SWORN POLICE OFF ICER WITH
THE POWERS GRANTED T O AN OFFICER OR EMPL OYEE OF THE FIELD
ENFORCEMENT DIVISION UNDER § 1–313 OF THIS SUBTITLE.
(E) The Executive Director is entitled to the salary provided in the State budget.
1–309.1.
(A) (1) THERE IS AN OFFICE OF SOCIAL EQUITY WITHIN IN THE
COMMISSION.
(2) THE OFFICE IS AN INDEPEND ENT OFFICE THAT FUNC TIONS
WITHIN THE MARYLAND CANNABIS ADMINISTRATION .
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(B) (1) THE GOVERNOR SHALL APPOIN T AN EXECUTIVE DIRECTOR OF
THE OFFICE OF SOCIAL EQUITY.
(2) THE EXECUTIVE DIRECTOR OF THE OFFICE OF SOCIAL EQUITY
SHALL HAVE AT LEAST 5 YEARS OF EXPERIENCE IN CIVIL RIGHTS ADVO CACY, CIVIL
RIGHTS LITIGATION , OR ANOTHER AREA OF S OCIAL JUSTICE.
(C) THE OFFICE OF SOCIAL EQUITY MAY EMPLOY STA FF AND RETAIN
CONTRACTORS AS MAY BE REQ UIRED TO CARRY OUT T HE FUNCTIONS OF THE
OFFICE.
(D) THE OFFICE OF SOCIAL EQUITY SHALL:
(1) PROMOTE AND ENCOURAG E FULL PARTICIPATION IN THE
REGULATED CANNABIS I NDUSTRY BY PEOPLE FR OM COMMUNITIES THAT HAVE
PREVIOUSLY BEEN DISP ROPORTIONATELY HARMED IMPACTED BY THE WAR ON
DRUGS IN ORDER TO PO SITIVELY IMPACT THOS E COMMUNITIES ;
(2) CONSULT WITH AND ASSIST THE COMPTROLLER IN THE
ADMINISTRATION OF TH E COMMUNITY REINVESTMENT AND REPAIR FUND UNDER
§ 1–322 OF THIS SUBTITLE ;
(3) CONSULT WITH AND ASS IST THE DEPARTMENT OF COMMERCE IN
THE ADMINISTRATION O F THE CANNABIS BUSINESS ASSISTANCE FUND UNDER §
5–1901 OF THE ECONOMIC DEVELOPMENT ARTICLE;
(4) IDENTIFY AND OPPOSE REGULATIONS THAT UNN ECESSARILY
BURDEN OR UNDERMINE THE LEGISLATIVE INTE NT OF THE OFFICE, INCLUDING
REGULATIONS THAT IMP OSE UNDUE RESTRICTIO NS OR FINANCIAL REQU IREMENTS;
(5) PROVIDE REC OMMENDATIONS TO THE COMMISSION ON
REGULATIONS RELATED TO:
(I) DIVERSITY; AND
(II) SOCIAL EQUITY APPLIC ATIONS;
(6) WORK WITH THE COMMISSION CANNABIS REGULATION AND
ENFORCEMENT DIVISION MARYLAND CANNABIS ADMINISTRATION TO IMPLEMENT
FREE TECHNICAL ASSISTANCE FOR SOCIA L EQUITY AND MINORIT Y CANNABIS
BUSINESS APPLICANTS ;
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(7) PRODUCE REPORTS AND RECOMMENDATIONS ON D IVERSITY AND
EQUITY IN OWNERSHIP , MANAGEMENT , AND EMPLOYMENT IN TH E LEGAL CANNABIS
ECONOMY; AND
(8) ASSIST BUSINESSES WI TH OBTAINING FINANCING THROUGH TH E
CAPITAL ACCESS PROGRAM UNDER TITLE 36, SUBTITLE 14 OF THIS ARTICLE; AND
(9) DETERMINE WHICH INDI VIDUALS AND ENTITIES SHALL BE
GRANTED LOANS OR GRA NTS FROM THE CANNABIS BUSINESS ASSISTANCE FUND
UNDER § 5–1901 OF THE ECONOMIC DEVELOPMENT ARTICLE.
(E) (1) ON OR BEFORE MARCH 1 EACH YEAR, THE OFFICE OF SOCIAL
EQUITY SHALL PRODUCE AND MAKE PUBLICLY AV AILABLE A REPORT ON HOW THE
FUNDS IN THE COMMUNITY REINVESTMENT AND REPAIR FUND UNDER § 1–322 OF
THIS SUBTITLE AND THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 5–1901
OF THE ECONOMIC DEVELOPMENT ARTICLE WERE WAS ALLOCATED DURING THE
IMMEDIATELY PRECEDIN G CALENDAR YEAR .
(2) THE REPORT SHALL ALSO BE SUBMITTED TO THE GENERAL
ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE.
(F) (1) ON OR BEFORE NOVEMBER 1 EACH YEAR, THE OFFICE OF SOCIAL
EQUITY SHALL SOLICIT PUBLIC INPUT ON THE USES OF THE FUNDS IN THE
COMMUNITY REINVESTMENT AND REPAIR FUND UNDER § 1–322 OF THIS SUBTITLE
AND THE CANNABIS BUSINESS ASSISTANCE FUND UNDER § 5–1901 OF THE
ECONOMIC DEVELOPMENT ARTICLE.
(2) ON OR BEFORE DECEMBER 15 EACH YEAR, THE OFFICE OF
SOCIAL EQUITY SHALL PUBLISH A REVIEW OF THE INPU T RECEIVED UNDER
PARAGRAPH (1) OF THIS SUBSECTION O N A PUBLICLY ACCESSI BLE PART OF THE
COMMISSION’S WEBSITE.
1–309.2.
(A) IN THIS SECTION, “ADVISORY BOARD” MEANS THE ADVISORY BOARD
ON MEDICAL AND ADULT–USE CANNABIS.
(B) THERE IS AN ADVISORY BOARD ON MEDICAL AND ADULT–USE
CANNABIS.
(C) THE ADVISORY BOARD SHALL:
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(1) CONSIDER ALL MATTERS SUBMITTED TO IT BY T HE COMMISSION,
THE GOVERNOR, THE CANNABIS REGULATION AND ENFORCEMENT DIVISION
MARYLAND CANNABIS ADMINISTRATION , OR THE GENERAL ASSEMBLY; AND
(2) ON ITS OWN INITIATIV E, PROVIDE RECOMMENDATI ONS TO THE
COMMISSION OR THE CANNABIS REGULATION AND ENFORCEMENT DIVISION
MARYLAND CANNABIS ADMINISTRATION ESTABLISHED UNDER § 36–201 OF THIS
ARTICLE REGARDING GU IDELINES, RULES, AND REGULATIONS THAT THE ADVISORY
BOARD CONSIDERS IMPOR TANT OR NECESSARY FO R REVIEW AND CONSIDE RATION
BY THE COMMISSION OR THE CANNABIS REGULATION AND ENFORCEMENT
DIVISION MARYLAND CANNABIS ADMINISTRATION .
(D) THE ADVISORY BOARD CONSISTS OF :
(1) THE DIRECTOR OF THE CANNABIS REGULATION AND
ENFORCEMENT DIVISION MARYLAND CANNABIS ADMINISTRATION , WHO SHA LL
SERVE AS CHAIR OF THE ADVISORY BOARD; AND
(2) THE FOLLOWING MEMBER S, APPOINTED BY THE GOVERNOR WITH
THE ADVICE AND CONSE NT OF THE SENATE:
(I) THREE MEMBERS THAT H AVE SUBSTANTIAL EXPE RIENCE IN
ONE OR MORE OF THE F OLLOWING:
1. CANNABIS LAW , SCIENCE, OR POLICY;
2. PUBLIC HEALTH OR HEA LTH CARE;
3. AGRICULTURE ;
4. FINANCE; OR
5. ADDICTION TREATMENT ;
(II) ONE ACADEMIC RESEARC HER WITH AT LEAST 5 YEARS OF
EXPERIENCE IN SOCIAL OR HEALTH EQUITY ;
(III) ONE REPRESENTATIVE O F AN INDEPENDENT TES TING
LABORATORY REGISTERE D UNDER § 36–408 OF THIS ARTICLE;
(IV) THREE TWO REPRESENTATIVES WHO HOLD A STANDARD
GROWER, PROCESSOR, OR DISPENSARY LICENSE UNDER § 36–401 OF THIS ARTICLE;
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(V) TWO REPRESENTATIVES WHO HOLD A STANDARD
PROCESSOR LICENSE UN DER § 36–401 OF THIS ARTICLE;
(VI) TWO REPRESENTATIVES WHO HOLD A STANDARD
DISPENSARY LICENSE U NDER § 36–401 OF THIS ARTICLE;
(V) (VII) THREE TWO REPRESENTATIVES WHO HOLD A MICRO
GROWER, PROCESSOR, OR DISPENSARY LICENSE UNDER § 36–401 OF THIS ARTICLE;
(VIII) TWO REPRESENTATIVES WHO HOLD A MICRO PRO CESSOR
LICENSE UNDER § 36–401 OF THIS ARTICLE;
(IX) TWO REPRESENTATIVES WHO HOLD A MICRO DIS PENSARY
LICENSE UNDER § 36–401 OF THIS ARTICLE;
(X) ONE REPRESENTATIVE WHO H OLDS AN INCUBATOR SP ACE
LICENSE UNDER § 36–401 OF THIS ARTICLE;
(XI) ONE REPRESENTATIVE W HO HOLDS AN ON –SITE
CONSUMPTION LICENSE UNDER § 36–401 OF THIS ARTICLE;
(VI) (XII) ONE REPRESENTATIVE O F AN ORGANIZATION TH AT
ADVOCATES ON BEHALF OF PATIENTS WHO ENGA GE IN THE MEDICAL US E OF
CANNABIS;
(VII) (XIII) ONE REPRESENTATIVE O F AN ORGANIZATION TH AT
ADVOCATES ON BEHALF OF CONSUMERS WHO ENG AGE IN THE ADULT USE OF
CANNABIS; AND
(VIII) (XIV) ONE HEALTH CARE PROV IDER WHO IS REGISTER ED
TO CERTIFY PATIENTS TO OBTAIN MEDICAL CA NNABIS UNDER § 36–301 OF THIS
ARTICLE.
(E) THE PRESIDENT OF THE SENATE AND THE SPEAKER OF THE HOUSE
MAY RECOMMEND TO THE GOVERNOR A LIST OF IN DIVIDUALS FOR APPOINTMENT
TO THE ADVISORY BOARD.
(F) (1) THE TERM OF A MEMBER OF THE ADVISORY BOARD IS 4 YEARS.
(2) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE UNTIL
A SUCCESSOR IS APPOI NTED AND QUALIFIES .
WES MOORE, Governor Ch. 254
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(3) AN APPOINTED MEMBER M AY NOT SERVE MORE TH AN TWO FULL
TERMS.
(4) THE POSITIONS FOR MEM BERS APPOINTED UNDER SUBSECTION
(D)(2)(VII) THROUGH (XI) OF THIS SECTION BECO ME EFFECTIVE WHEN TH E FIRST
LICENSES ARE ISSUED UNDER THOSE RESPECTI VE LICENSE TYPES .
(G) AN APPOINTED MEMBER O F THE ADVISORY BOARD MUST BE:
(1) AT LEAST 25 YEARS OLD;
(2) A RESIDENT OF THE STATE WHO HAS RESIDED IN THE STATE FOR
AT LEAST THE IMMEDIA TELY PRECEDING 5 YEARS BEFORE THE APP OINTMENT; AND
(3) A REGISTERED VOTER O F THE STATE.
(H) THE ADVISORY BOARD SHALL ESTABLI SH AT LEAST TWO
SUBCOMMITTEES TO FOC US ON MEDICAL AND AD ULT–USE CANNABIS.
(I) TO THE EXTENT PRACTIC ABLE AND CONSISTENT WITH FEDERAL AND
STATE LAW, THE MEMBERSHIP OF TH E ADVISORY BOARD SHALL REFLECT T HE
RACIAL, ETHNIC, AND GENDER DIVERSITY OF THE STATE.
1–310.
The Executive Director and all employees in the Office of the Executive Director may
not accept a contribution of money or property worth at least $100 from an entity or
individual associated with the alcohol [or], tobacco, OR CANNABIS industries with respect
to regulation of alcohol [or], tobacco, OR CANNABIS.
1–313.
(a) There is a Field Enforcement Division in the Office of the Executive Director.
(b) (1) The Field Enforcement Division may employ officers and employees as
provided in the State budget.
(2) The officers and employees of the Field Enforcement Division:
(i) shall be sworn police officers;
(ii) shall have the powers, duties, and responsibilities of peace
officers to enforce the provisions of this article relating to:
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1. the unlawful importation of alcoholic beverages [and],
tobacco, AND CANNABIS into the State;
2. the unlawful manufacture of alcoholic beverages [and],
tobacco, AND CANNABIS in the State;
3. the transportation and distribution throughout the State
of alcoholic beverages [and], tobacco, AND CANNABIS that are manufactured illegally and
on which any alcoholic beverages taxes [or], tobacco taxes, OR CANNABIS TAXES imposed
by the State are due and unpaid; and
4. the manufacture, sale, barter, transportation,
distribution, or other form of owning, handling, or dispersing alcoholic beverages [or],
tobacco, OR CANNABIS by any person not licensed or authorized under this article,
provisions of the Tax – General Article relating to alcoholic beverages [or], tobacco, OR
CANNABIS, or provisions of the Business Regulation Article relating to tobacco OR
CANNABIS; and
(iii) may make cooperative arrangements for and work and cooperate
with the Office of the Comptroller, local State’s Attorneys, sheriffs, bailiffs, police, and other
prosecuting and peace officers to enforce this article.
(c) The Field Enforcement Division:
(1) shall consult with and advise the local State’s Attorneys and other law
enforcement officials and police officers regarding enforcement problems in their respective
jurisdictions; and
(2) may recommend changes to improve the administration of this article,
provisions of the Tax – General Article relating to alcoholic beverages [and], tobacco, AND
CANNABIS, and provisions of the Business Regulation Article relating to tobacco.
1–322.
(a) (1) There is a Community Reinvestment and Repair Fund.
(2) The purpose of the Fund is to provide funds to community–based
organizations that serve communities determined by THE OFFICE OF SOCIAL EQUITY,
IN CONSULTATION WITH the Office of the Attorney General, to have been the most
impacted by disproportionate enforcement of the cannabis prohibition before July 1, 2022.
(3) The Comptroller shall administer the Fund.
(4) (i) The Fund is a special, nonlapsing fund that is not subject to §
7–302 of the State Finance and Procurement Article. WES MOORE, Governor Ch. 254
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(ii) The State Treasurer shall hold the Fund separately, and the
Comptroller shall account for the Fund.
(5) The Fund consists of:
(i) [Revenue distributed to the Fund that is at least 30% of the
revenues from adult–use cannabis] SALES AND USE TAX RE VENUE DISTRIBUTED TO
THE FUND UNDER § 2–1302.2 OF THE TAX – GENERAL ARTICLE;
(ii) [Licensing] CONVERSION fees paid by [dual–licensed cannabis
establishments] BUSINESSES UNDER § 36–403 OF THIS ARTICLE ; and
(iii) [Any] ANY other money from any other source accepted for the
benefit of the Fund, in accordance with any conditions adopted by the Comptroller for the
acceptance of donations or gifts to the Fund.
(6) (i) The Fund may be used only for:
1. [Funding] FUNDING community–based initiatives
intended to benefit low–income communities;
2. [Funding] FUNDING community–based initiatives that
serve [communities disproportionately harmed by the cannabis prohibition and
enforcement] DISPROPORTIONATELY I MPACTED AREAS , AS DEFINED IN § 36–101 OF
THIS ARTICLE; and
3. [Any] ANY related administrative expenses.
(ii) Money may not be expended from the Fund for law enforcement
agencies or activities.
(iii) Money expended from the Fund is supplemental to and may not
supplant funding that otherwise would be appropriated for preexisting local government
programs.
(7) The State Treasurer shall invest the money of the Fund in the same
manner as other State money may be invested.
(8) No part of the Fund may revert or be credited to:
(i) [The] THE General Fund of the State; or
(ii) [Any] ANY other special fund of the State.
Ch. 254 2023 LAWS OF MARYLAND
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(9) The Comptroller shall pay out money from the Fund.
(10) The Fund is subject to audit by the Office of Legislative Audits as
provided for in § 2–1220 of the State Government Article.
(b) (1) The BASED ON THE PERCENTA GE ALLOCABLE TO EACH COUNTY
DETERMINED BY THE OFFICE OF SOCIAL EQUITY AND REPORTED B Y THE OFFICE TO
THE COMPTROLLER ON OR BEF ORE JULY 31 EACH YEAR, THE Comptroller shall
distribute funds from the Fund to each county in an amount that, for the period from July
1, 2002, to [June 30, 2022] JANUARY 1, 2023, both inclusive, is proportionate to the total
number of [cannabis arrests POSSESSION CHARGES in the county compared to the total
number of cannabis arrests POSSESSION CHARGES in the State] INDIVIDUALS
RESIDING IN THE COUNTY WHO WE RE CHARGED WITH A CA NNABIS CRIME
COMPARED TO THE TOTAL NUMBER OF INDI VIDUALS CHARGED WITH CANNABIS
CRIMES IN THE STATE.
(2) (i) Subject to the limitations under subsection (a)(6) of this section,
each county shall adopt a law establishing the purpose for which money received from the
Fund may be used.
(ii) On or before December 1 every 2 years, beginning in 2024, each
local jurisdiction POLITICAL SUBDIVISIO N THAT RECEIVES FUND S FROM THE FUND
UNDER PARAGRAPH (1) OF THIS SUBSECTION shall submit a report to the Governor and,
in accordance with § 2–1257 of the State Government Article, the Senate Budget and
Taxation Committee[, the Senate Finance Committee, the House Judiciary Committee, and
the House Health and Government Operations Committee] AND THE HOUSE
APPROPRIATIONS COMMITTEE on how funds received from the Fund were spent during
the immediately preceding 2 fiscal years.
1–323.
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “ADMINISTRATION ” HAS THE MEANING STAT ED IN § 36–101 OF
THIS ARTICLE.
(2) (3) “CANNABIS LICENSEE ” HAS THE MEANING STAT ED IN §
36–101 OF THIS ARTICLE.
(3) “DIVISION” HAS THE MEANING STAT ED IN § 36–101 OF THIS
ARTICLE.
WES MOORE, Governor Ch. 254
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(4) “GRANT PROGRAM” MEANS THE SOCIAL EQUITY PARTNERSHIP
GRANT PROGRAM.
(5) “OFFICE” MEANS THE OFFICE OF SOCIAL EQUITY.
(5) (6) (I) “QUALIFYING PARTNERSHI P” MEANS A MEANINGFUL
PARTNERSHIP BETWEEN AN OPERATIONAL CANNA BIS LICENSEE AND A S OCIAL
EQUITY LICENSEE THAT :
1. SUPPORTS OR ADVISES THE SOCIAL EQUITY
LICENSEE; AND
2. IS AUTHORIZED BY THE COMMISSION
ADMINISTRATION .
(II) “QUALIFYING PARTNERSHI P” INCLUDES A PARTNERSH IP
THROUGH WHICH THE OP ERATIONAL CANNABIS L ICENSEE PROVIDES ANY OF THE
FOLLOWING TO A SOCIA L EQUITY LICENSEE :
1. TRAINING;
2. MENTORSHIP ; OR
3. SHARED COMMERCIAL SP ACE OR EQUIPMENT .
(6) (7) “SOCIAL EQUITY LICENSE E” MEANS A SOCIAL EQUIT Y
APPLICANT, AS DEFINED HAS THE MEANING STAT ED IN § 36–101 OF THIS ARTICLE,
WHO HAS BEEN AWARDED A CANNABIS LICENSE OR CANNABIS REGISTRA TION.
(B) (1) THERE IS A SOCIAL EQUITY PARTNERSHIP GRANT PROGRAM IN
THE COMMISSION OFFICE.
(2) THE PURPOSE OF THE GRANT PROGRAM IS TO PROMOTE
QUALIFYING PARTNERSH IPS BETWEEN OPERATIO NAL CANNABIS LICENSE ES AND
SOCIAL EQUITY LICENS EES.
(C) (1) THE COMMISSION OFFICE SHALL IMPLEMENT AND ADMINISTER
THE GRANT PROGRAM, INCLUDING BY CLEARLY DEFINING THE PARAMET ERS OF A
QUALIFYING PARTNERSH IP.
(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , THE
COMMISSION OFFICE HAS DISCRETION TO AP PROVE, DENY, OR REVOKE
QUALIFYING PARTNERSH IPS.
Ch. 254 2023 LAWS OF MARYLAND
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(3) (I) THE COMMISSION OFFICE MAY APPROVE QUALIFYI NG
PARTNERSHIPS WHERE A COST OR OTHER FEE IS IMPOSED BY AN OPERAT IONAL
CANNABIS LICENSEE ON A SOCIAL EQUITY LICE NSEE IF THE COST OR OTHER FEE IS
SUBSTANTIAL LY REDUCED FROM THE MARKET VALUE .
(II) COSTS OR OTHER FEES U NDER SUBPARAGRAPH (I) OF THIS
PARAGRAPH MAY INCLUD E CHARGES FOR THE RE NT OF FACILITIES OR EQUIPMENT.
(D) (1) THE COMMISSION OFFICE SHALL AWARD GRANTS T O
OPERATIONAL CANNABIS LICENSEES THAT HAVE QUALIFYING PART NERSHIPS WITH
A SOCIAL EQUITY LICE NSEE.
(2) GRANT AMOUNTS SHALL B E BASED ON THE NATUR E OF THE
QUALIFYING PARTNERSH IP BETWEEN THE SOCIA L EQUITY LICENSEE AN D THE
OPERATIONAL CANNABIS LICENSEE.
(3) IF AN OPERATIONAL CAN NABIS LICENSEE HAS A LICENSE THAT
WAS CONVERTED BY THE DIVISION ADMINISTRATION UNDER § 36–401(B)(1)(II) OF
THIS ARTICLE, THE TOTAL AWARD AMOUNT OF ANY GRANTS FROM THE COMMISSION
ISSUED BY THE OFFICE UNDER THIS SEC TION TO THE LICENSEE MAY NOT EXCEED:
(I) THE COST OF THE LICENSE CONVERSI ON FEE THAT WAS
PAID BY THE LICENSEE ; OR
(II) $250,000 PER YEAR PER QUALIFY ING PARTNERSHIP .
(E) THE COMMISSION OFFICE MAY REQUIRE A GRANT RECIPIENT THAT
FAILS TO FULFILL THE REQUIREMENTS OF THE GRANT TO RETURN ALL OR PART OF
THE GRANT TO THE GRANT PROGRAM.
(F) FOR FISCAL YEAR 2025 AND EACH FISCAL YEAR THEREAFTER , THE
GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDGET BI LL AN APPROPRIATION OF
$5,000,000 FOR THE GRANT PROGRAM.
(G) THE COMMISSION OFFICE SHALL ADOPT REGULATI ONS TO:
(1) IMPLEMENT THE PROVIS IONS OF THIS SECTION ;
(2) ADMINISTER THE GRANT PROGRAM;
(3) ESTABLISH ELIGIBILIT Y AND GRANT APPLICAT ION
REQUIREMENTS ;
WES MOORE, Governor Ch. 254
– 21 –
(4) ESTABLISH A PROCESS FOR REVIEWING GRANT APPLICATIONS
AND AWARDING GRANTS TO SOCIAL EQUITY OPERATIONA L CANNABIS LICENSEES;
AND
(5) SPECIFY CRITERIA AND PROCEDURES TO MONITO R ELIGIBILITY
FOR THE GRANTS AUTHO RIZED UNDER THIS SEC TION.
TITLE 34. RESERVED.
TITLE 35. RESERVED.
DIVISION III. CANNABIS.
TITLE 36. MEDICAL AND ADULT–USE CANNABIS.
SUBTITLE 1. DEFINITIONS.
36–101.
(A) IN THIS TITLE THE FOL LOWING WORDS HAVE TH E MEANINGS
INDICATED.
(B) “ACADEMIC RESEARCH REP RESENTATIVE ” MEANS AN INDIVIDUAL WHO
IS:
(1) AN EMPLOYEE OR AGENT OF AN INSTITUTION OF HIGHER
EDUCATION, A RELATED MEDICAL FA CILITY, OR AN AFFILIATED BIO MEDICAL
RESEARCH FIRM THAT F ILED A REGISTRATION WITH THE DIVISION
ADMINISTRATION UNDER § 36–701 OF THIS TITLE; AND
(2) AUTHORIZED TO PURCHA SE MED ICAL CANNABIS FOR TH E
INSTITUTION OF HIGHE R EDUCATION, RELATED MEDICAL FACI LITY, OR AFFILIATED
BIOMEDICAL RESEARCH FIRM.
(C) “ADMINISTRATION ” MEANS THE MARYLAND CANNABIS
ADMINISTRATION ESTABL ISHED UNDER THIS TIT LE.
(C) (1) “CANNABIS” MEANS THE PLANT CANNABIS SATIVA L. AND ANY
PART OF THE PLANT , INCLUDING ALL DERIVA TIVES, EXTRACTS, CANNABINOIDS ,
ISOMERS, ACIDS, SALTS, AND SALTS OF ISOMERS , WHETHER GROWING OR N OT, WITH
A DELTA–9–TETRAHYDROCANNABINOL CONCENTRATION GREATE R THAN 0.3% ON A
DRY WEIGHT BASIS .
(2) “CANNABIS” INCLUDES CANNABIS PR ODUCTS. Ch. 254 2023 LAWS OF MARYLAND
– 22 –
(3) “CANNABIS” DOES NOT INCLUDE HEM P OR HEMP PRODUCTS , AS
DEFINED IN § 14–101 OF THE AGRICULTURE ARTICLE.
(D) (C) (D) “CANNABIS AGENT ” MEANS AN EMPLOYEE , A VOLUNTEER , OR ANY
OTHER AUTHORIZED PER SON WHO ACTS FOR OR AT THE D IRECTION OF A CANNAB IS
LICENSEE OR CANNABIS REGISTRANT.
(E) (D) (E) “CANNABIS BUSINESS ” MEANS A BUSINESS LIC ENSED OR
REGISTERED BY THE DIVISION ADMINISTRATION TO OPERATE IN THE CA NNABIS
INDUSTRY.
(F) (E) (F) “CANNABIS CONCENTRATE ” MEANS A PRODUCT DERIV ED FROM
CANNABIS THAT IS KIE F, HASHISH, BUBBLE HASH , OIL, WAX, OR ANY OTHER
PRODUCT PRODUCED BY EXTRACTING CANNABINO IDS FROM THE PLANT T HROUGH
THE USE OF SOLVENTS , CARBON DIOXIDE , OR HEAT, SCREENS, PRESSES, OR STEAM
DISTILLATION.
(G) (F) (G) “CANNABIS–INFUSED PRODUCT ” MEANS OIL, WAX, OINTMENT,
SALVE, TINCTURE, CAPSULE, SUPPOSITORY , DERMAL PATCH , CARTRIDGE, OR ANY
OTHER PRODUCT CONTAI NING CANNABIS CONCEN TRATE OR USABLE CANN ABIS
THAT HAS BEEN PROCES SED SO THAT THE DRIE D LEAVES AND FLOWER S ARE
INTEGRATED INTO OTHE R MATERIAL.
(H) (G) (H) “CANNABIS LICENSEE ” MEANS A BUSINESS LIC ENSED BY THE
DIVISION ADMINISTRATION TO OPERATE IN THE CA NNABIS INDUSTRY .
(I) (H) (I) “CANNABIS PRODUCTS ” MEANS PRODUCTS THAT ARE COMPOSED
OF CANNABIS , CANNABIS CONCENTRATE , CANNABIS EXTRACT , OR OTHER
INGREDIENTS AND ARE INTENDED FOR USE OR CONSUMPTION , INCLUDING EDIBLE
PRODUCTS, OILS, AND TINCTURES .
(J) (I) (J) “CANNABIS REGISTRANT ” MEANS AN INDEPENDENT TESTING
LABORATORY , A TRANSPORTER , A DELIVERY SERVICE , A SECURITY GUARD
COMPANY, A WASTE DISPOSAL COM PANY, AND ANY OTHER TYPE O F CANNABIS
BUSINESS REGISTERED UNDER THIS TITLE AND AUTHORIZED BY THE DIVISION
ADMINISTRATION .
(K) (J) (K) (1) “CANOPY” MEANS THE TOTAL SQUA RE FOOTAGE OF SPACE
USED BY A CANNABIS L ICENSEE FOR THE PRODUCTION OF FLOWERING CANNABI S
PLANTS.
WES MOORE, Governor Ch. 254
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(2) “CANOPY” INCLUDES EACH LAYER OF FLOWERING CANNABI S
PLANTS GROWN ON ANY RACK OR SHELVING .
(3) “CANOPY” DOES NOT INCLUDE SQU ARE FOOTAGE USED FOR :
(I) MOTHER STOCK ;
(II) PROPAGATION ;
(III) IMMATURE OR NONFLOWE RING PLANTS;
(IV) PROCESSING;
(V) DRYING;
(VI) CURING;
(VII) TRIMMING;
(VIII) STORAGE;
(IX) OFFICES;
(X) HALLWAYS;
(XI) PATHWAYS;
(XII) WORK AREAS ; OR
(XIII) OTHER ADMINISTRATIVE AND NONPRODUCTION USES .
(L) (K) (L) (1) “CAREGIVER” MEANS:
(I) AN INDIVIDUAL WHO HA S AGREED TO ASSIST W ITH A
QUALIFYING PATIENT ’S MEDICAL USE OF CAN NABIS; AND
(II) FOR A QUALIFYING PAT IENT UNDER THE AGE O F 18 YEARS:
1. A PARENT OR LEGAL GUARDIAN; AND
2. NOT MORE THAN TWO AD DITIONAL ADULTS
DESIGNATED BY THE PA RENT OR LEGAL GUARDI AN.
Ch. 254 2023 LAWS OF MARYLAND
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(2) “CAREGIVER” DOES NOT INCLUDE ANY DESIGNATED SCHOOL
PERSONNEL AUTHORIZED TO ADMINISTER MEDICA L CANNABIS TO A STUD ENT IN
ACCORDANCE WITH THE GUIDELINES ESTABLISHED UNDER § 7–446 OF THE
EDUCATION ARTICLE.
(M) (L) (M) “CERTIFYING PROVIDER ” MEANS AN INDIVIDUAL WHO:
(1) (I) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO
PRACTICE MEDICINE TH AT WAS ISSUED BY THE STATE BOARD OF PHYSICIANS
UNDER TITLE 14 OF THE HEALTH OCCUPATIONS ARTICLE; AND
2. IS IN GOOD STANDING WITH THE STATE BOARD OF
PHYSICIANS;
(II) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO
PRACTICE DENTISTRY T HAT WAS ISSUED BY TH E STATE BOARD OF DENTAL
EXAMINERS UNDER TITLE 4 OF THE HEALTH OCCUPATIONS ARTICLE; AND
2. IS IN GOOD STANDING WITH THE STATE BOARD OF
DENTAL EXAMINERS;
(III) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO
PRACTICE PODIATRY TH AT WAS ISSUED BY THE STATE BOARD OF PODIATRIC
MEDICAL EXAMINERS UNDER TITLE 16 OF THE HEALTH OCCUPATIONS ARTICLE;
AND
2. IS IN GOOD STANDING WITH THE STATE BOARD OF
PODIATRIC MEDICAL EXAMINERS;
(IV) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO
PRACTICE REGISTERED NURSING OR AND HAS AN ACTIVE , UNRESTRICTED
CERTIFICATION TO PRA CTICE AS A NURSE PRACTITIONER O R A NURSE MIDWIFE
THAT WAS ISSUED BY T HE STATE BOARD OF NURSING UNDER TITLE 8 OF THE
HEALTH OCCUPATIONS ARTICLE; AND
2. IS IN GOOD STANDING WITH THE STATE BOARD OF
NURSING; OR
(V) 1. HAS AN ACTIVE , UNRESTRICTED LICENSE TO
PRACTICE AS A PHYSICIAN A SSISTANT ISSUED BY T HE STATE BOARD OF PHYSICIANS
UNDER TITLE 15 OF THE HEALTH OCCUPATIONS ARTICLE;
WES MOORE, Governor Ch. 254
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2. HAS AN ACTIVE DELEGA TION AGREEMENT WITH A
PRIMARY SUPERVISING PHYSICIAN WHO IS A C ERTIFYING PROVIDER ; AND
3. IS IN GOOD STAN DING WITH THE STATE BOARD OF
PHYSICIANS;
(2) HAS A STATE CONTROLLED DANG EROUS SUBSTANCES
REGISTRATION ; AND
(3) IS REGISTERED WITH T HE DIVISION ADMINISTRATION TO MAKE
CANNABIS AVAILABLE T O PATIENTS FOR MEDIC AL USE IN ACCORDANCE WITH
REGULATIONS ADOPTE D BY THE DIVISION ADMINISTRATION .
(N) “COMMISSION” MEANS THE ALCOHOL, TOBACCO, AND CANNABIS
COMMISSION ESTABLISHE D UNDER § 1–302 OF THIS ARTICLE.
(O) (M) (N) “CONSUMER” MEANS AN INDIVIDUAL AT LEAST 21 YEARS OLD
WHO PURCHASES CANNABIS O R CANNABIS PRODUCTS FOR PERSONA L USE BY
INDIVIDUALS AT LEAST 21 YEARS OLD.
(P) (N) (O) (1) “CONTROL” MEANS:
(1) (I) THE DECISION –MAKING AUTHORITY OVE R THE
MANAGEMENT , OPERATIONS, OR POLICIES THAT GUI DE A BUSINESS; OR
(2) (II) AUTHORITY OVER THE O PERATION OF THE TECH NICAL
ASPECTS OF A BUSINES S.
(2) “CONTROL” INCLUDES:
(I) HOLDING A VOTING INTEREST OF 5% OR MORE IN A
CANNABIS LICENSEE OR A RIGHT TO VETO SIGNIF ICANT EVENTS;
(II) THE RIGHT OR AUTHORI TY TO MAKE OR VETO D ECISIONS
REGARDING OPERATIONS AND STRATEGIC PLANNI NG, CAPITAL ALLOCATIONS ,
ACQUISITIONS, AND DIVESTMENTS ;
(III) THE RIGHT OR AUTHORI TY TO APPOINT OR REM OVE
DIRECTORS, CORPORATE –LEVEL OFFICERS , OR THEIR EQUIVALENT ;
(IV) THE RIGHT OR AUTHORI TY TO MAKE MAJOR MARKETING ,
PRODUCTION , AND FINANCIAL DECISI ONS; AND
Ch. 254 2023 LAWS OF MARYLAND
– 26 –
(V) THE RIGHT OR AUTHORI TY TO EXECUTE EXCLUS IVE
CONTRACTS OR SIGNIFI CANT CONTRACTS IN TH E AGGREGATE OF $10,000 OR
GREATER ON BEHALF OF THE LICENSEE; AND
(VI) THE RIGHT OR AUTHORI TY TO EARN 5% OR MORE OF THE
PROFITS OR COLLECT 5% OR MORE OF THE DIVID ENDS.
(Q) (O) (P) “DELIVERY SERVICE ” MEANS A CANNABIS LIC ENSEE AUTHORIZED
TO DELIVER CANNABIS IN ACCORDANCE WITH A MICRO LICENSE TO OPE RATE A
DISPENSARY.
(R) (P) (Q) “DISPENSARY” MEANS AN ENTITY LICENSED UNDE R THIS TITLE
THAT ACQUIRES , POSSESSES, REPACKAGES , TRANSFERS, REPACKAGES ,
TRANSPORTS , SELLS, DISTRIBUTES, OR DISPENSES CANNABI S OR CANNABIS
PRODUCTS, INCLUDING TINCTURES , AEROSOLS, OILS, AND OINTMENTS , RELATED
SUPPLIES, AND EDUCATIONAL MATERIALS FOR USE BY QUALIFYING PATIENTS ,
CAREGIVERS, OR CONSUMERS THROUGH A STOREFRONT OR THRO UGH A DELIVERY
SERVICE, BASED ON LICENSE TYP E.
(S) (Q) (R) “DISPROPORTIONATELY IM PACTED AREA” MEANS A GEOGRAPHIC
AREA IDENTIFIED BY T HE OFFICE OF SOCIAL EQUITY THAT HAS BEEN
DISPROPORTIONATELY I MPACTED BY THE PROHI BITION OF CANNABIS HAD ABOVE
150% OF THE STATE’S 10–YEAR AVERAGE FOR CAN NABIS POSSESSION CHA RGES, AS
DETERMINED BY INFORM ATION FROM THE ADMINISTRATIVE OFFICE OF THE
COURTS.
(T) (R) “DIVISION” MEANS THE CANNABIS REGULATION AND
ENFORCEMENT DIVISION ESTABLISHED UNDER THIS TITLE .
(U) (S) (1) “EDIBLE CANNABIS PRODU CT” MEANS A CANNABIS
PRODUCT INTENDED FOR HUMAN CONSUMPTION BY ORAL INGESTION , IN WHOLE OR
IN PART.
(2) “EDIBLE CANNABIS PRODU CT” INCLUDES A CANNABIS PRODUCT
THAT DISSOLVES OR DI SINTEGRATES IN THE M OUTH.
(3) “EDIBLE CANNABIS PRODU CT” DOES NOT INCLUDE ANY :
(I) CANNABIS CONCENTRATE ;
(II) CANNABIS–INFUSED PRODUCT , INCLUDING AN OIL , A WAX,
AN OINTMENT , A SALVE, A TINCTURE, A CAPSULE, A SUPPOSITORY , A DERMAL
PATCH, OR A CARTRIDGE ; OR WES MOORE, Governor Ch. 254
– 27 –
(III) OTHER DOSAGE FORM TH AT IS RECOGNIZED BY THE
UNITED STATES PHARMACOPEIA , THE NATIONAL FORMULARY, OR THE U.S. FOOD
AND DRUG ADMINISTRATION AND IS APPROVED BY THE DIVISION
ADMINISTRATION .
(V) (T) “GROWER” MEANS AN ENTITY LICE NSED UNDER THIS TITL E THAT:
(1) CULTIVATES, OR PACKAGES, OR DISTRIBUTES CANNABIS; AND
(2) IS AUTHORIZED BY THE DIVISION ADMINISTRATION TO PROVIDE
CANNABIS TO OTHER CA NNABIS LICENSEES AND REGISTERED INDEPENDE NT
TESTING LABORATORIES .
(W) (U) “INCUBATOR SPACE ” MEANS A FACILITY OPE RATED IN
ACCORDANCE WITH § 36–401 § 36–401(C)(3) OF THIS TITLE.
(X) (V) “INDEPENDENT TESTING L ABORATORY ” MEANS A FACILITY , AN
ENTITY, OR A SITE THAT IS RE GISTERED WITH THE DIVISION ADMINISTRATION TO
PERFORM TESTS RELATE D TO THE INSPECTION AND TESTING OF CANNA BIS AND
PRODUCTS CONTAINING CANNABIS.
(W) “INSTITUTION OF HIGHER EDUCATION” HAS THE MEANING STAT ED IN §
10–101 OF THE EDUCATION ARTICLE.
(Y) (X) “MICRO LICENSE” MEANS A LICENSE ISSU ED IN ACCORDANCE
WITH § 36–401 § 36–401(C)(2) OF THIS TITLE.
(Z) (Y) “ON–SITE CONSUMPTION EST ABLISHMENT ” MEANS AN ENTITY
LICENSED UNDER § 36–401(C)(4) OF THIS TITLE TO DISTRI BUTE CANNABIS OR
CANNABIS PRODUCTS FO R ON–SITE CONSUMPTION OTHER THAN CONSUMPTI ON BY
SMOKING INDOORS .
(AA) (Z) “OWNER” MEANS A PERSON WITH AN OWNERSHIP INTERES T IN A
CANNABIS LICENSEE .
(BB) (AA) “OWNERSHIP INTEREST ” MEANS A DIRECT OR IN DIRECT EQUITY
INTEREST IN A CANNAB IS LICENSEE, INCLUDING IN ITS SHA RES OR STOCK.
(BB) “PASSIVE INVESTOR ” MEANS A PERSON AN INDIVIDUAL OR AN ENTITY
THAT:
(1) HOLDS AN AGGREGATE O WNERSHIP INTEREST OF LESS THAN 5%
IN A CANNABIS LICENSEE; AND Ch. 254 2023 LAWS OF MARYLAND
– 28 –
(2) DOES NOT HAVE CONTRO L OF THE CANNABIS LI CENSEE.
(CC) “PRINCIPAL OFFICER ” MEANS A BOARD MEMBER , A PRESIDENT, A VICE
PRESIDENT, A SECRETARY, A TREASURER, A PARTNER, AN OFFICER, OR A MANAGING
MEMBER, OR ANY OTHER INDIVID UAL WITH A PROF IT SHARING, FINANCIAL
INTEREST, OR REVENUE SHARING A RRANGEMENT , INCLUDING AN INDIVID UAL WITH
THE AUTHORITY TO CON TROL A CANNABIS LICE NSEE.
(DD) “PROCESSOR” MEANS AN ENTITY LICE NSED UNDER THIS TITL E THAT:
(1) TRANSFORMS CANNABIS INTO ANOTHER PRODUCT OR AN
EXTRACT AND PACKAGES AND LABELS THE CANNA BIS PRODUCT; AND
(2) IS AUTHORIZED BY THE DIVISION ADMINISTRATION TO PROVIDE
CANNABIS TO LICENSED DISPENSARIES AND REG ISTERED INDEPENDENT TESTING
LABORATORIES .
(EE) “QUALIFYING PATIENT ” MEANS AN INDIVIDUAL WHO:
(1) HAS BEEN PROVIDED WI TH A WRITTEN CERTIFI CATION BY A
CERTIFYING PROVIDER IN ACCORDANCE WITH A BONA FIDE PROVIDER –PATIENT
RELATIONSHIP ; AND
(2) IF UNDER THE AGE OF 18 YEARS, HAS A CAREGIVER .
(FF) “SOCIAL EQUITY APPLICA NT” MEANS AN APPLICANT FOR A CANNABIS
LICENSE OR CANNABIS REGISTRATION THAT :
(1) HAS AT LEAST 65% OWNERSHIP AND CONTRO L HELD BY ONE OR
MORE INDIVIDUALS WHO :
(I) HAVE LIVED IN A DISP ROPORTIONATELY IMPAC TED AREA
FOR AT LEAST 5 OF THE 10 YEARS IMMEDIATELY PR ECEDING THE SUBMISSI ON OF
THE APPLICATION ; OR
(II) ATTENDED A PUBLIC SC HOOL IN A DISPROPORT IONATELY
IMPACTED AREA FOR AT LEAST 5 YEARS; OR
(III) FOR AT LEAST 2 YEARS, ATTENDED A 4–YEAR INSTITUTION
OF HIGHER EDUCATION IN THE STATE WHERE AT LEAST 40% OF THE INDIVIDUALS
WHO ATTEND THE INSTI TUTION OF HIGHER EDU CATION ARE ELIGIBLE FOR A PELL
GRANT; OR
WES MOORE, Governor Ch. 254
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(2) MEETS ANY OTHER CRIT ERIA ESTABLISHED BY THE COMMISSION
BASED ON THE RESULTS OF A DISPARITY STUDY ADMINISTRATION .
(GG) (1) “SOCIAL EQUITY LICENSE E” MEANS A SOCIAL EQUIT Y APPLICANT
WHO HAS BEEN AWARDED A CANNABIS LICENSE O R CANNABIS REGISTRAT ION.
(2) “SOCIAL EQUITY LICENSE E” INCLUDES A GROWER , PROCESSOR,
OR DISPENSARY THAT :
(I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE
OCTOBER 1, 2022; AND
(II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022.
(GG) (HH) “STANDARD LICENSE ” MEANS A LICENSE ISSU ED IN ACCORDANCE
WITH § 36–401 § 36–401(C)(1) OF THIS TITLE.
(HH) (II) “TRANSPORTER ” MEANS AN ENTITY REGI STERED UNDER THIS
TITLE TO TRANSPORT C ANNABIS BETWEEN CANN ABIS LICENSEES AND R EGISTERED
INDEPENDENT TESTING LABORATORIES .
(II) (JJ) (1) “USABLE CANNABIS ” MEANS THE DRIED LEAVES AND
FLOWERS OF THE CANNA BIS PLANT.
(2) “USABLE CANNABIS ” DOES NOT INCLUDE SEE DLINGS, SEEDS,
STEMS, STALKS, OR ROOTS OF THE PLAN T OR THE WEIGHT OF A NY NONCANNABIS
INGREDIENTS COMBINED WITH CANNABIS , SUCH AS INGREDIENTS ADDED TO
PREPARE A TOPICAL ADMINISTRATI ON.
(JJ) (KK) “WRITTEN CERTIFICATION ” MEANS A CERTIFICATIO N THAT:
(1) IS ISSUED BY A CERTI FYING PROVIDER TO A QUALIFYING PATIENT
WITH WHOM THE PROVID ER HAS A BONA FIDE P ROVIDER–PATIENT RELATIONSHIP ;
(2) INCLUDES A WRITTEN S TATEMENT CERTIFYING THAT , IN THE
CERTIFYING PROVIDER ’S PROFESSIONAL OPINI ON, AFTER HAVING COMPLET ED AN
ASSESSMENT OF THE PA TIENT’S MEDICAL HISTORY AN D CURRENT MEDICAL
CONDITION, THE PATIENT HAS A CO NDITION:
(I) THAT MEETS THE INCLU SION CRITERIA AND DO ES NOT
MEET THE EXCLUSION C RITERIA OF THE CERTI FYING PROVIDER ’S APPLICATION;
AND
Ch. 254 2023 LAWS OF MARYLAND
– 30 –
(II) FOR WHICH THE POTENT IAL BENEFITS OF THE MEDICAL
USE OF CANNABIS WOUL D LIKELY OUTWEIGH TH E HEALTH RISKS FOR T HE PATIENT;
AND
(3) MAY INCLUDE A WRITTE N STATEMENT CERTIFYI NG THAT, IN THE
CERTIFYING PROVIDER ’S PROFESSIONAL OPINI ON, A 30–DAY SUPPLY OF MEDICA L
CANNABIS WOULD BE IN ADEQUATE TO MEET THE MEDICAL NEEDS OF THE
QUALIFYING PATIENT .
SUBTITLE 2. CANNABIS REGULATION AND ENFORCEMENT DIVISION MARYLAND
CANNABIS ADMINISTRATI ON.
36–201.
(A) (1) THERE IS A CANNABIS REGULATION AND ENFORCEMENT
DIVISION ESTABLISHED WITHIN THE OFFICE OF THE EXECUTIVE DIRECTOR OF IN
THE COMMISSION.
(2) THE DIVISION IS AN INDEPE NDENT UNIT THAT FUNC TIONS
WITHIN, AND REPORTS DIRECTLY ONLY TO, THE COMMISSION.
(A) THERE IS A MARYLAND CANNABIS ADMINISTRATION ESTABL ISHED AS
AN INDEPENDENT UNIT OF STATE GOVERNMENT .
(B) (1) THERE IS A DIRECTOR OF THE DIVISION ADMINISTRATION .
(2) THE GOVERNOR SHALL APPOIN T THE DIRECTOR OF THE
DIVISION ADMINISTRATION WITH THE ADVICE AND CONSENT OF THE SENATE.
(3) THE DIRECTOR SERVES AT TH E PLEASURE OF THE GOVERNOR.
(C) THE DIRECTOR MUST HAVE TH E TRAINING AND EXPER IENCE,
INCLUDING KNOWLEDGE OF THE STATE CANNABIS INDUST RY AND REGULATORY
SYSTEM, THAT IS NEEDED TO DIRECT THE WORK OF THE DIVISION
ADMINISTRATION .
(D) THE DIVISION ADMINISTRATION MAY EMPLOY OFFICERS AND
EMPLOYEES STAFF AND RETAIN CON TRACTORS AS PROVIDED IN THE STATE
BUDGET.
(E) THE DIVISION ADMINISTRATION :
WES MOORE, Governor Ch. 254
– 31 –
(1) SHALL BE RESPONSIBLE FOR CARRYING OUT THE R EQUIREMENTS
AND DUTIES ESTABLISH ED UNDER THIS DIVISION TITLE; AND
(2) MAY RECOMMEND CHANGE S TO IMPROVE THE ADM INISTRATION
OF THIS DIVISION TITLE RELATING TO THE REGU LATION OF CANNABIS .
(F) THE DIVISION ADMINISTRATION SHALL ADMINISTER AND ENFORCE
THIS TITLE.
36–202.
(A) THE DIVISION ADMINISTRATION SHALL:
(1) DEVELOP AND MAINTAIN A SEED–TO–SALE TRACKING SYSTEM
THAT TRACKS CANNABIS FROM EITHER THE SEED OR IMMATURE PLANT ST AGE
UNTIL THE CANNABIS I S SOLD TO A PATIEN T, CAREGIVER, OR CONSUMER ;
(2) CONDUCT FINANCIAL AN D CRIMINAL BACKGROUN D
INVESTIGATIONS OF AN Y PERSON WHO SUBMITS AN APPLICATION FOR A CANNABIS
LICENSE OR A CANNABI S LICENSEE, AS REQUIRED UNDER TH IS TITLE;
(3) DEVELOP A PROCESS FO R CONSUMERS AND QUAL IFYING
PATIENTS TO PURCHASE CLONES A ND SEEDS, SEEDLINGS, STALKS, ROOTS, AND
STEMS OF THE CANNABI S PLANT FOR CULTIVAT ION IN ACCORDANCE WI TH § 5–601.2
OF THE CRIMINAL LAW ARTICLE;
(3) (4) SOLICIT, EVALUATE, AND ISSUE OR DENY AP PLICATIONS
FOR CANNABIS LIC ENSES AND CANNABIS R EGISTRATIONS , INCLUDING:
(I) LICENSES TO OPERATE A CANNABIS BUSINESS IN
ACCORDANCE WITH THIS TITLE; AND
(II) REGISTRATION FOR IND EPENDENT TESTING
LABORATORIES , TRANSPORTERS , SECURITY GUARD COMPA NIES, AND WASTE
DISPOSAL COMPANIES;
(4) (5) AWARD OR DENY :
(I) A LICENSE TO OPERATE A CANNABIS BUSINESS IN
ACCORDANCE WITH THIS TITLE; AND
(II) REGISTRATION TO INDE PENDENT TESTING LABO RATORIES,
TRANSPORTERS , SECURITY GUARD COMPA NIES, WASTE DISPOSAL COMPA NIES, AND Ch. 254 2023 LAWS OF MARYLAND
– 32 –
ANY OTHER TYPE OF CA NNABIS BUSINESS AUTH ORIZED BY THE DIVISION
ADMINISTRATION ;
(5) (6) CONDUCT ANNOUNCED AN D UNANNOUNCED INSPEC TIONS
OF ANY BUSINESS LICE NSED OR REGISTERED U NDER THIS TITLE TO E NSURE
COMPLIANCE WITH THIS TITLE;
(6) (7) AFTER A DETERMINATIO N THAT A VIOLATION O F THIS TITLE
OR A REGULATION ADOP TED UNDER THIS TITLE HAS OCCURRED , SUSPEND, FINE,
RESTRICT, OR REVOKE CANNABIS LICENSES AND CANNABI S REGISTRATIONS ,
WHETHER ACTIVE , EXPIRED, OR SURRENDERED , OR IMPOSE ANY OTHER PENALTY
AUTHORIZED BY THIS T ITLE OR ANY REGULATI ON ADOPTED UNDER THI S TITLE;
(7) (8) (I) GIVE NOTICE AND HOLD A HEARING IN ACCORDA NCE
WITH TITLE 10, SUBTITLE 2 OF THE STATE GOVERNMENT ARTICLE, FOR ANY:
1. CONTESTED CANNABIS L ICENSE OR REGISTRATION
DENIAL; OR
2. VIOLATION OF THIS TI TLE OR ANY REGULATIO N
ADOPTED UNDER THIS T ITLE;
(II) ADMINISTER OATHS IN A PROCEEDING UNDER T HIS
SECTION; AND
(III) SUBJECT TO SUBSECTIO N (B)(3) OF THIS SECTION , ALLOW
THE PERSON AGAINST W HOM THE ACTION IS CO NTEMPLATED TO BE REP RESENTED
AT THE HEARING BY CO UNSEL;
(8) (9) ADOPT REGULATIONS NE CESSARY TO CARRY OUT ITS
DUTIES UNDER THIS TI TLE; AND
(9) (10) PERFORM ANY OTHER PO WER AUTHORIZED OR DU TY
REQUIRED UNDER THIS TITLE OR ANY OTHER P ROVISION OF STATE LAW.
(B) THE DIVISION ADMINISTRATION MAY:
(1) ISSUE A SUBPOENA FOR THE ATTENDANCE OF A WITNESS TO
TESTIFY OR THE PRODU CTION OF EVIDENCE IN CONNECTIO N WITH:
(I) ANY DISCIPLINARY ACT ION UNDER THIS TITLE ; OR
WES MOORE, Governor Ch. 254
– 33 –
(II) ANY INVESTIGATION OR PROCEEDING INITIATED FOR AN
ALLEGED VIOLATION OF THIS TITLE;
(2) DELEGATE THE HEARING AUTHORITY AUTHORIZED UNDER
SUBSECTION (A)(7) (A)(8) OF THIS SECTION TO AN EM PLOYEE WITHIN THE
ADMINISTRATION ; AND
(3) IF, AFTER DUE NOTICE , THE PERSON AGAINST W HOM A
DISCIPLINARY ACTION IS CONTEMPLATED DOES NOT APPEAR AT A HEAR ING, HEAR
AND DETERMINE THE MA TTER.
36–203.
(A) THE DIVISION ADMINISTRATION SHALL:
(1) EVALUATE THE REGULATIONS ADOP TED BY THE NATALIE M.
LAPRADE MEDICAL CANNABIS COMMISSION IN TITLE 10, SUBTITLE 62 OF THE
CODE OF MARYLAND REGULATIONS; AND
(2) ON OR BEFORE JULY 1, 2023, ADOPT EMERGENCY REGU LATIONS
TO:
(I) CARRY OUT THE LICENS URE REQUIREMENTS SPECIFIED
UNDER THIS TITLE ;
(II) IMPLEMENT PROCEDURES RELATED TO CANNABIS
APPLICATIONS, LICENSES, AND REGISTRATIONS IN ACCORDANCE WITH THIS TITLE;
(III) ASSIST THE COMPTROLLER IN THE CO LLECTION OF TAXES
IMPOSED ON THE SALE OF ADULT–USE CANNABIS U NDER § 11–104(K) OF THE TAX –
GENERAL ARTICLE;
(IV) IMPLEMENT INVENTORY MANAGEMENT AND TRACK ING
THAT DOES NOT DIFFER ENTIATE BETWEEN ADUL T–USE OR MEDICAL CANNA BIS OR
CANNABIS PRODUCTS BE FORE THE POINT OF SA LE, EXCEPT FOR PRODUCTS
ALLOWED BY THE DIVISION ADMINISTRATION FOR SALE ONLY TO PAT IENTS AND
CAREGIVERS; AND
(V) ESTABLISH OPERATING REQUIREMENTS FOR CAN NABIS
LICENSEES OR CANNABIS REGISTRA NTS, INCLUDING REQUIREMEN TS FOR:
1. SECURITY, INCLUDING LIGHTING , PHYSICAL
SECURITY, VIDEO, AND ALARM REQ UIREMENTS;
Ch. 254 2023 LAWS OF MARYLAND
– 34 –
2. SAFE AND SECURE DELI VERY, TRANSPORT, AND
STORAGE OF CANNABIS ;
3. PREVENTING THE SALE OR DIVERSION OF CANN ABIS
AND CANNABIS PRODUCT S TO PERSONS UNDER T HE AGE OF 21 YEARS; AND
4. PACKAGING AND LABELI NG OF CANNABIS AND
CANNABIS PR ODUCTS, INCLUDING CHILD –RESISTANT PACKAGING ; AND
5. HEALTH AND SAFETY ST ANDARDS GOVERNING TH E
CULTIVATION, MANUFACTURE , TESTING, AND DISPENSING OF CA NNABIS OR
CANNABIS PRODUCTS .
(B) THE EMERGENCY REGULAT IONS THAT THE DIVISION ADMINISTRATION
IS REQUIRED TO ADOPT UNDER SUBSECTION (A) OF THIS SECTION SHAL L:
(1) BE SUPPLEMENTAL TO T HE MEDICAL CANNABIS REGULATIONS
UNDER TITLE 10, SUBTITLE 62 OF THE CODE OF MARYLAND REGULATIONS; AND
(2) NOTWITHSTANDING ANY OTHER LAW, REMAIN IN EFFECT UNT IL
THE TAKING EFFECT OF NON EMERGENCY REGULATION S ADOPTED UNDER
SUBSECTION (C) OF THIS SECTION.
(C) (1) ON OR BEFORE JULY 1, 2024, THE DIVISION ADMINISTRATION
SHALL ADOPT NONEMERG ENCY REGULATIONS NECESSARY TO CARRY OUT THE
PROVISIONS OF THIS TITLE.
(2) TO THE EXTENT PRACTICABLE , THE DIVISION ADMINISTRATION
SHALL ADOPT REGULATI ONS:
(I) REQUIRING CANNABIS L ICENSEES TO TRANSITI ON FROM A
CASH SYSTEM AND TO U SE TRADITIONAL BANKI NG SERVICES; AND
(II) ESTABLISHING TRADE P RACTICE RESTRICTIONS .
(3) THE ADMINISTRATION SHALL ADOPT REGULATIONS :
(I) GOVERNING INTERNET SALES OF CAN NABIS;
(II) IMPLEMENTING AND SUP PLEMENTING PACKAGING AND
LABELING REQUIREMENT S FOR CANNABIS PRODU CTS UNDER § 36–203.1 OF THIS
SUBTITLE;
WES MOORE, Governor Ch. 254
– 35 –
(III) ESTABLISHING PROCEDU RES FOR THE USE OF POINT OF
SALE TECHNOLOGIES BY DISPENSARIES FOR ALL TRANSACTIONS IN ORDE R TO
VERIFY A CONSUMER ’S AGE USING A DRIVER ’S LICENSE OR OTHER V ALID
IDENTIFICATION ISSUE D BY A GOVERNMENTAL UNIT SPECIFIED BY TH E
ADMINISTRATION ; AND
(IV) ESTABLISHING HEALTH, SAFETY, SECURITY, AND TRACKING
REQUIREMENTS FOR THE PACKAGING AND REPACK AGING OF CANNABIS BY A
DISPENSARY IN ACCORD ANCE WITH § 36–203.1 OF THIS SUBTITLE.
(D) THE REGULATIONS ADOPT ED BY THE DIVISION ADMINISTRATION
UNDER THIS SECTION S HALL, TO THE EXTENT PRACTICABLE , REGULATE MEDICAL
AND ADULT–USE CANNABIS IN THE SAME MANNER .
36–203.1.
(A) THE ADMINISTRATION SHALL ADOPT REGULATIONS ES TABLISHING
LIMITS ON THE MAXIMU M POTENCY OF CANNABI S PRODUCTS SOLD IN T HE STATE,
INCLUDING LIMITS ON THE MAXIMUM AMOUNT OF THC IN INDIVIDUAL CANNAB IS
PRODUCTS AND LIMITS ON THE MAXIMUM AGGRE GATE THC AMOUNT FOR MULTIPLE
EDIBLE CANNABIS PROD UCTS PACKAGED TOGETH ER.
(B) A PACKAGE OF CANNABIS FOR DISTRIBUTION TO A CONSUMER OR
QUALIFYING PATIENT S HALL:
(1) CONFORM TO :
(I) CHILD–RESISTANT PACKAGING REQUIREMENTS
ESTABLISHED UNDER 16 C.F.R. § 1700.15(B)(1); AND
(II) TAMPER–EVIDENT PACKAGING ;
(2) PROVIDE THAT PACKAGI NG AND LABELING SHAL L INCLUDE:
(I) A FINISHED PRODUCT L OT NUMBER AND EXPIRA TION DATE
IF APPLICABLE;
(II) A STATEMENT:
1. THAT CONSUMPTION OF CANNABIS MAY IMPAIR YOUR
ABILITY TO DRIVE A C AR OR OPERATE MACHIN ERY, USE EXTREME CAUTION ;
2. OF POTENTIAL RISKS A SSOCIATED WITH CANNA BIS
USE, ESPECIALLY DURING PR EGNANCY OR BREAST FE EDING; AND Ch. 254 2023 LAWS OF MARYLAND
– 36 –
3. THAT THIS PACKAGE CO NTAINS CANNABIS , KEEP OUT
OF THE REACH OF CHIL DREN AND ANIMALS ;
(III) THE NAME , ADDRESS, AND PHONE NUMBER OF THE
DISPENSARY THAT SOLD THE PRODUCT TO REPOR T AN ADVERSE EVENT;
(IV) ANY ALLERGEN WARNING REQUIRED BY LAW ;
(V) A LISTING OF NONCANN ABIS INGREDIENTS ; AND
(VI) AN ITEMIZATION, INCLUDING WEIGHT :
1. OF ALL CANNABINOID A ND TERPENE INGREDIEN TS
SPECIFIED FOR THE PR ODUCT; AND
2. CONCENTRATIONS OF ANY CANNABINOID OF L ESS
THAN 1% PRINTED WITH A LEADI NG ZERO BEFORE THE D ECIMAL POINT.
(C) CANNABIS LABELING AND PACKAGING MAY NOT IN CLUDE:
(1) SUBJECT TO SUBSECTIO N (D) OF THIS SECTION, ANY IMAGE THAT
MAY APPEAL TO CHILDR EN INCLUDING:
(I) IMAGES OF FOOD, CANDY, BAKED GOODS , CEREAL, FRUIT,
AND BEVERAGES ; AND
(II) A RESEMBLANCE TO THE TRADEMARKED CHARACTE RISTIC
PRODUCT–SPECIALIZED PACKAGIN G OF ANY COMMERCIALL Y AVAILABLE CANDY ,
SNACK, BAKED GOOD, CEREAL, OR BEVERAGE ;
(2) ANY IMAGE THAT IS DE SIGNED OR LIKELY TO A PPEAL TO MINORS ,
INCLUDING CARTOONS , TOYS, ANIMALS, CHILDREN, OR ANY LIKENESS TO I MAGES,
CHARACTERS , OR PHRASES THAT ARE POPULARLY USED TO AD VERTISE TO
CHILDREN;
(3) A STATEMENT , ARTWORK, OR DESIGN THAT COULD REASONABLY
MISLEAD ANY INDIVIDUAL TO BELIEVE THAT THE PACKAGING C ONTAINS ANYTHING
OTHER THAN A FINISHE D CANNABIS PRODUCT ; AND
(4) ANY IMAGE OF A SEAL , FLAG, CREST, COAT OF ARMS , OR OTHER
INSIGNIA THAT COULD REASONABLY MISLEAD A NY INDIVIDUAL TO BEL IEVE THAT
THE PRODUCT HAS BEEN ENDORSED, MANUFACTURED , OR USED BY ANY AGENC Y OF
A STATE OR POLITICAL SUBDIVISION. WES MOORE, Governor Ch. 254
– 37 –
(D) THE ADMINISTRATION MAY AD OPT REGULATIONS TO A LLOW THE SALE ,
ON OR BEFORE JULY 1, 2024, OF CANNABIS OR CANNA BIS PRODUCTS THAT AR E
LABELED OR PACKAGED USING IMAGES DESC RIBED UNDER SUBSECTI ON (C)(1) OF
THIS SECTION.
36–204.
(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE DIVISION
ADMINISTRATION SHALL ESTABLISH AND MAINTAIN A STATE CANNABIS TESTIN G
LABORATORY .
(2) (I) ON OR BEFORE JULY 1, 2023, THE MARYLAND
DEPARTMENT OF AGRICULTURE OR THE MARYLAND DEPARTMENT OF HEALTH
MAY ENTER INTO A MEM ORANDUM OF UNDERSTAN DING WITH THE DIVISION
ADMINISTRATION TO TEST CANNABIS AT AN EXISTING STATE–OWNED LABORATORY
IF DOING SO WOULD BE A MORE ECONOMIC AND EFFICIENT ALTERNATIVE TO THE
ESTABLISHMENT OF A T ESTING LABORATORY UN DER PARAGRAPH (1) OF THIS
SUBSECTION.
(II) IF THE MARYLAND DEPARTMENT OF AGRICULTURE OR
THE MARYLAND DEPARTMENT OF HEALTH AND THE DIVISION ADMINISTRATION
DETERMINE THAT CO –LOCATING CANNABIS TE STING AT AN EXISTING
STATE–OWNED LABORATORY IS NOT OPERATIONALLY FE ASIBLE, SUFFICIENT
FUNDING SHALL BE PRO VIDED IN THE ANNUAL BUDGET TO COMPLY WIT H
PARAGRAPH (1) OF THIS SUBSECTION .
(B) THE STATE CANNABIS TESTIN G LABORATORY IS RESP ONSIBLE FOR:
(1) DEVELOPING AND MAINTAIN ING A CANNABIS LABOR ATORY
REFERENCE LIBRARY TH AT CONTAINS CANNABIS TESTING METHODOLOGIE S IN THE
AREAS OF:
(I) POTENCY;
(II) HOMOGENEITY ;
(III) DETECTION AND QUANTI TATION OF CONTAMINAN TS; AND
(IV) SOLVENTS;
(2) ESTABLISHING STANDAR D OPERATING PROCEDUR ES FOR
SAMPLE COLLECTION , PREPARATION , AND ANALYSIS OF CANN ABIS BY
INDEPENDENT TESTING LABORATORIES ; Ch. 254 2023 LAWS OF MARYLAND
– 38 –
(3) CONDUCTING PROFICIEN CY TESTING OF INDEPE NDENT TESTING
LABORATORIES ;
(4) REMEDIATING PROBLEMS WITH INDEPEN DENT TESTING
LABORATORIES ; AND
(5) CONDUCTING COMPLIANC E TESTING ON CANNABI S SAMPLES
ANALYZED BY INDEPEND ENT TESTING LABORATO RIES; AND
(6) IDENTIFYING AND DETE CTING THE PRESENCE A ND PURITY OF
CANNABIS, ALCOHOL, AND TOBACCO IN SAMPL ES OR SEIZED CONTRAB AND IN
SUPPORT OF THE REGUL ATORY AUTHORITY OF T HE COMMISSION OR
ADMINISTRATION .
(C) INDEPENDENT TESTING L ABORATORIES LICENSED UNDER § 36–408 OF
THIS TITLE SHALL PRO VIDE MATERIALS FOR T HE CANNABIS LABORATO RY
REFERENCE LIBRARY .
(D) THE STATE CANNABIS TESTIN G LABORATORY SHALL H OLD MEDICAL
AND ADULT–USE CANNABIS TESTING TO THE SAME STANDARD S.
36–205.
(A) THE DIVISION ADMINISTRATION MAY IMPOSE REGISTRATION AND
OTHER FEES TO DEFRAY THE COSTS OF:
(1) THE OPERATIONS OF TH E DIVISION ADMINISTRATION AND THE
COMMISSION; AND
(2) ADMINISTERING AND EN FORCING THIS DIVISION TITLE.
(B) IF FEES ARE IMPOSED U NDER SUBSECTION (A) OF THIS SECTION , THE
DIVISION ADMINISTRATION SHALL DEPOSIT THE FE ES COLLECTED IN THE
CANNABIS REGULATION AND ENFORCEMENT FUND ESTABLISHED UNDE R § 36–206
OF THIS SUBTITLE.
36–206.
(A) IN THIS SECTION , “FUND” MEANS THE CANNABIS REGULATION AND
ENFORCEMENT FUND.
(B) THERE IS A CANNABIS REGULATION AND ENFORCEMENT FUND.
WES MOORE, Governor Ch. 254
– 39 –
(C) THE PURPOSE OF THE FUND IS TO PROVIDE FU NDS TO COVER THE
COSTS OF:
(1) THE OPERATION OF THE DIVISION AND THE COMMISSION
ADMINISTRATION ; AND
(2) ADMINISTERING AND EN FORCING THIS DIVISION TITLE.
(D) THE COMPTROLLER SHALL ADM INISTER THE FUND AT THE DIRECTION
OF THE DIVISION ADMINISTRATION .
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY ,
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND.
(F) THE FUND CONSISTS OF :
(1) FEES DISTRIBUTED TO THE FUND UNDER § 36–205 OF THIS
SUBTITLE;
(2) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–1302.2 OF THE
TAX – GENERAL ARTICLE;
(3) INTEREST EARNINGS OF THE FUND; AND
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR
THE BENEFIT OF THE FUND, IN ACCORDANCE WITH A NY CONDITIONS ADOPTE D BY
THE COMMISSION FOR THE AC CEPTANCE OF DONATION S OR GIFTS TO THE FUND.
(G) THE FUND MAY BE USED ONLY FOR CARRYING OUT THI S DIVISION
TITLE.
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED.
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO
THE FUND.
(I) THE FUND IS SUBJECT TO AU DIT BY THE OFFICE OF LEGISLATIVE
AUDITS AS PROVIDED FO R IN § 2–1220 OF THE STATE GOVERNMENT ARTICLE.
Ch. 254 2023 LAWS OF MARYLAND
– 40 –
(J) (1) ON OR BEFORE MARCH 15 EACH YEAR, THE COMPTROLLER
SHALL PUBLISH ON ITS WEBSITE A DETAILED R EPORT ON REVENUE DI STRIBUTED
TO AND EXPENDITURES FROM THE FUND.
(2) THE REPORT SHALL ALSO BE SUBMITTED TO THE GENERAL
ASSEMBLY IN ACCORDANC E WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE.
SUBTITLE 3. MEDICAL USE OF CANNABIS.
36–301.
(A) THE DIVISION ADMINISTRATION SHALL REGISTER AS A CE RTIFYING
PROVIDER AN INDIVIDU AL WHO:
(1) MEETS THE REQUIREMEN TS OF THIS SUBTITLE ; AND
(2) SUBMITS THE REQUIRED APPLICATION TO THE DIVISION
ADMINISTRATION .
(B) TO BE REGISTERED AS A CERTIFYING PROVIDER , A PROVIDER SHALL
SUBMIT AN APPLICATIO N TO THE DIVISION ADMINISTRATION THAT INCLUDES :
(1) THE REASONS FOR INCL UDING A PATIENT UNDE R THE CARE OF
THE PROVIDER FOR THE PURPOSES OF THIS SUB TITLE, INCLUDING THE PATIENT’S
QUALIFYING MEDICAL C ONDITIONS;
(2) AN ATTESTATION THAT A STANDARD PATIENT E VALUATION WILL
BE COMPLETED , INCLUDING A HISTORY , A PHYSICAL EXAMINATI ON, A REVIEW OF
SYMPTOMS, AND OTHER RELEVANT M EDICAL INFORMATION ; AND
(3) THE PROVIDER ’S PLAN FOR THE ONGOING ASSES SMENT AND
FOLLOW–UP CARE OF A PATIENT AND FOR COLLECTING A ND ANALYZING DATA .
(C) THE DIVISION ADMINISTRATION IS ENCOURAGED TO APP ROVE
PROVIDER APPLICATION S FOR THE FOLLOWING :
(1) A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL CONDITION
THAT RESULTS IN A PA TIENT BEING ADMITTED INTO HOSPICE OR RECE IVING
PALLIATIVE CARE ;
(2) A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL CONDITION
OR THE TREATMENT OF A CHRONIC OR DEBILIT ATING DISEASE OR MED ICAL
CONDITION THAT PRODU CES:
WES MOORE, Governor Ch. 254
– 41 –
(I) CACHEXIA, ANOREXIA, OR WASTING SYNDROME ;
(II) SEVERE OR CHRONIC PA IN;
(III) SEVERE NAUSEA ;
(IV) SEIZURES; OR
(V) SEVERE OR PERSISTENT MUSCLE SPASMS ;
(3) GLAUCOMA ; OR
(4) POST–TRAUMATIC STRESS DIS ORDER.
(D) THE DIVISION ADMINISTRATION MAY NOT LIMIT TREATMENT OF A
PARTICULAR MEDICAL C ONDITION TO ONE CLAS S OF PROVIDERS.
(E) THE DIVISION ADMINISTRATION MAY APPROVE APPLICAT IONS THAT
INCLUDE ANY OTHER CO NDITION THAT IS SEVE RE AND FOR WHICH OTH ER MEDICAL
TREATMENTS HAVE BEEN INEFFECTIVE IF THE S YMPTOMS REASONABLY CAN BE
EXPECTED TO BE RELIE VED BY THE MEDICAL U SE OF CANNABIS.
(F) A CERTIFYING PROVIDER OR THE SPOUSE OF A C ERTIFYING PROVIDER
MAY NOT:
(1) RECEIVE ANY GIFT FRO M A CANNABIS LICENSE E;
(2) HOLD AN OWNERSHIP IN TEREST IN A CANNABIS LICENSEE OR A
BUSINESS THAT CONTRO LS A CANNABIS LICENS EE; OR
(3) RECEIVE ANY COMPENSA TION FROM A CANNABIS LICENSEE.
(G) A CERTIFYING PROVIDER SHALL ISSUE EACH WRI TTEN CERTIFICATION
IN THE FORM REQUIRED BY THE DIVISION ADMINISTRATION .
(H) A CERTIFYING PROVIDER MAY DISC USS MEDICAL CANNABIS WITH A
PATIENT.
(I) (1) A CERTIFYING PROVIDER REGISTRATION IS VALI D FOR 2 YEARS.
(2) THE DIVISION ADMINISTRATION SHALL GRANT OR DENY A
RENEWAL OF A REGISTR ATION BASED ON THE P ROVIDER’S PERFORMANCE IN
COMPLYING WITH REGULATIONS ADO PTED BY THE DIVISION ADMINISTRATION .
Ch. 254 2023 LAWS OF MARYLAND
– 42 –
36–302.
(A) A QUALIFYING PATIENT O R CAREGIVER MAY OBTA IN MEDICAL
CANNABIS FROM A DISP ENSARY LICENSED BY T HE DIVISION ADMINISTRATION .
(B) (1) A QUALIFYING PATIENT W HO IS AT LEAST 21 YEARS OLD MAY NOT
CULTIVATE MORE THAN FOUR CANNABIS PLANTS .
(2) IF TWO OR MORE QUALIF YING PATIENTS WHO AR E AT LEAST 21
YEARS OLD RESIDE AT THE SAME RESIDENCE , NOT MORE THAN FOUR C ANNABIS
PLANTS MAY BE CULTIV ATED AT THAT RESIDEN CE.
(3) EXCEPT AS PROVIDED IN PARAGRAPHS (1) AND (2) OF THIS
SUBSECTION, A QUALIFYING PATIENT SHALL COMPLY WITH TH E CANNABIS
CULTIVATION REQUIREM ENTS ESTABLISHED UND ER § 5–601.2 OF THE CRIMINAL
LAW ARTICLE.
(C) A QUALIFYING PATIENT U NDER THE AGE OF 18 YEARS MAY OBTAIN
MEDICAL CANNABIS ONL Y THROUGH:
(1) THE QUALIFYING PATIE NT’S CAREGIVER; OR
(2) ANY DESIGNATED SCHOO L PERSONNEL AUTHORIZ ED TO
ADMINISTER MEDICAL C ANNABIS TO A STUDENT IN ACCORDANCE WITH T HE
GUIDELINES ESTABLISH ED UNDER § 7–446 OF THE EDUCATION ARTICLE.
(D) A CAREGIVER MAY SERVE NOT MORE THAN FIVE Q UALIFYING PATIENTS
AT ANY TIME.
(E) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , A
QUALIFYING PATIENT M AY HAVE NOT MORE THA N TWO CAREGIVERS .
(2) A QUALIFYING PATIENT U NDER THE AG E OF 18 YEARS MAY HAVE
NOT MORE THAN FOUR C AREGIVERS.
(F) A SALE OF CANNABIS OR CANNABIS PRODUCTS TO A QUALIFYING
PATIENT IS NOT SUBJE CT TO TAXES IMPOSED ON THE SALE OF CANNA BIS OR
CANNABIS PRODUCTS UN DER § 11–104(K) OF THE TAX – GENERAL ARTICLE.
(G) A QUALIFYING PATIENT M AY POSSESS UP TO :
(1) 120 GRAMS OF USABLE CANN ABIS; OR
WES MOORE, Governor Ch. 254
– 43 –
(2) 36 GRAMS OF DELTA –9–TETRAHYDROCANNABINOL (THC) IN THE
CASE OF A CANNABIS –INFUSED PRODUCT .
(H) DESIGNATED SCHOOL PER SONNEL DESCRIBED IN SUBSECTION (C)(2)
OF THIS SECTION:
(1) MAY ADMINISTER TO A STUDENT ONLY MEDICAL CANNABIS:
(I) THAT IS OBTAINED THR OUGH THE STUDENT ’S CAREGIVER;
AND
(II) IN ACCORDANCE WITH D OSING, TIMING, AND DELIVERY
ROUTE INSTRUCTIONS A S PROVIDED BY THE CE RTIFYING PROVIDER ’S WRITTEN
INSTRUCTIONS ; AND
(2) ARE NOT REQUIRED TO REGISTER WITH THE COMMISSION
ADMINISTRATION UNDER THIS SUBTITLE .
(I) A CAREGIVER MAY ADMINI STER MEDICAL CANNABI S TO A STUDENT
WHO IS A QUALIFYING PATIENT OF THE CAREG IVER ON SCHOOL PROPE RTY, DURING
SCHOOL–SPONSORED ACTIVITIES , AND WHILE ON A SCHOO L BUS.
SUBTITLE 4. CANNABIS LICENSING.
36–401.
(A) (1) A PERSON MUST OBTAIN A CANNABIS LICENSE ISS UED BY THE
DIVISION ADMINISTRATION TO OPERATE A CANNABI S BUSINESS.
(2) A CANNABIS LICENSE ISS UED UNDER THIS SUBT ITLE:
(I) AUTHORIZES THE HOLDE R OF THE LICENSE TO OPERATE A
MEDICAL AND ADULT –USE CANNABIS BUSINES S;
(II) IS VALID FOR 5 YEARS ON INITIAL LIC ENSURE AND 5 YEARS
ON RENEWAL ; AND
(III) MAY BE TRANSFERRED O NLY IN ACCORDANCE WI TH
SUBTITLE 5 OF THIS TITLE.
(B) (1) THE DIVISION ADMINISTRATION SHALL:
Ch. 254 2023 LAWS OF MARYLAND
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(I) ISSUE STANDARD LICEN SES, MICRO LICENSES , INCUBATOR
SPACE LICENSES , AND ON–SITE CONSUMPTION LIC ENSES IN ACCORDANCE WITH
THIS TITLE;
(II) ON OR BEFORE JULY 1, 2023, CONVERT LICENSES THA T
WERE ISSUED TO MEDICAL CA NNABIS GROWERS , PROCESSORS , AND DISPENSARIES ,
INCLUDING THOSE BUSI NESSES PREAPPROVED F OR LICENSURE , TO LICENSES TO
OPERATE A MEDICAL AN D ADULT–USE CANNABIS BUSINES S IF:
1. A CONVERSION FEE IS PAID IN ACCORDANCE W ITH §
36–403 OF THIS SUBTITLE; AND
2. THE BUSINESS COMPLIE S WITH THE OWNERSHIP
RESTRICTIONS UNDER S UBSECTION (E) OF THIS SECTION;
(III) SET PRODUCTION , PROCESSING, SALES, AND OTHER
LIMITATIONS AND REQU IREMENTS FOR ALL LIC ENSE TYPES;
(IV) ISSUE DISPENSARY LIC ENSES IN A MANNER TH AT
ENCOURAGES A BALANCE D GEOGRAPHIC DISTRIB UTION BASED ON POPUL ATION
AND MARKET DEMAND WI THIN A SPECIFIC COUN TY, AS WELL AS
CROSS–JURISDICTIONAL MARKE T DEMAND; AND
(V) CONSIDER MARKET DEMA ND IN THE ISSUANCE O F ALL
LICENSE TYPES; AND
(VI) (V) ADOPT REGULATIONS RE QUIRING LICENSEES WH OSE
LICENSES WERE CONVER TED BY THE DIVISION ADMINISTRATION UNDER ITEM (II)
OF THIS PARAGRAPH TO RESERVE A SPECIFIED AMOUNT OF CANNABIS F OR SOCIAL
EQUITY LICENSEES .
(2) THE DIVISION ADMINISTRATION MAY:
(I) INSPECT A CANNABIS L ICENSEE TO ENSURE CO MPLIANCE
WITH THIS TITLE AND THE REGULATIONS ADOP TED UNDER THIS TITLE ;
(II) REVOKE A CANNABIS LI CENSE IF GOOD FAITH EFFORTS
HAVE NOT BEEN MADE B Y THE CANNABIS LICEN SEE TO ESTABLISH A C ANNABIS
BUSINESS WITHIN 18 MONTHS AFTER THE LIC ENSE WAS AWARDED ;
(III) IMPOSE PENALTIES OR RESCIND THE LICENSE OF A
CANNABIS LICENSEE TH AT DOES NOT MEET THE STANDARDS FOR LICENS URE WES MOORE, Governor Ch. 254
– 45 –
ESTABLISHED UNDER TH IS TITLE OR REGULATI ONS ADOPTED UNDER TH IS TITLE;
AND
(IV) CONDITIONALLY AWARD CAN NABIS LICENSES.
(C) (1) A STANDARD LICENSE AUT HORIZES THE HOLDER O F THE
LICENSE:
(I) FOR GROWERS , TO OPERATE MORE THAN 10,000 SQUARE
FEET, BUT NOT MORE THAN 300,000 SQUARE FEET , OF INDOOR CANOPY OR ITS
EQUIVALENT, AS CALCULATED BY THE DIVISION ADMINISTRATION ;
(II) FOR PROCESSORS , TO PROCESS MORE THAN 1,000 POUNDS
OF CANNABIS PER YEAR , AS CALCULATED BY THE DIVISION ADMINISTRATION ; AND
(III) FOR DISPENSARIES , TO OPERATE A STORE A T A PHYSICAL
LOCATION THAT SELLS CANNABIS OR CANNABIS PRODUCTS .
(2) A MICRO LICENSE AUTHOR IZES THE HOLDER OF T HE LICENSE:
(I) FOR GROWERS , TO OPERATE NOT MORE THAN 10,000
SQUARE FEET OF INDOO R CANOPY OR ITS EQUI VALENT, AS CALCULATED BY THE
DIVISION ADMINISTRATION ;
(II) FOR PROCESSORS , TO PROCESS NOT MORE THAN 1,000
POUNDS OF CANNABIS P ER YEAR, AS CALCULATED BY THE DIVISION
ADMINISTRATION ; AND
(III) FOR DISPENSARIES , TO OPERATE A DELIVER Y SERVICE
THAT SELLS CANNABIS OR CANNABIS PRODUCTS WITHOUT A PHYSICAL
STOREFRONT , PROVIDED THAT THE LICENSEE EMPLOYS NOT MORE THAN 10
EMPLOYEES.
(3) AN INCUBATOR SPACE LI CENSE AUTHORIZES THE HOLDER OF
THE LICENSE TO OPERA TE A FACILITY WITHIN WHICH A MICRO LICENS EE MAY
OPERATE IN ACCORDANC E WITH § 36–406 OF THIS SUBTITLE.
(4) AN ON–SITE CONSUMPTION LICENSE AUTHORIZES T HE HOLDER
OF THE LICENSE TO OP ERATE A FACILITY IN ON THE PREMISES OF WHICH
INDIVIDUALS CAN SMOK E OUTDOORS, VAPE, OR CONSUME CANNABIS IN
ACCORDANCE WITH § 36–407 OF THIS SUBTITLE.
Ch. 254 2023 LAWS OF MARYLAND
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(D) THE DIVISION ADMINISTRATION MAY NOT ISSUE MORE T HAN THE
FOLLOWING NUMBER OF LICENSES PER TYPE , INCLUDING LICENSES C ONVERTED
UNDER SUBSECTION (B)(1)(II) OF THIS SECTION:
(1) FOR STANDARD LICENSE S:
(I) 75 GROWER LICENSES ;
(II) 100 PROCESSOR LICENSES ; AND
(III) 300 DISPENSARY LICENSES ;
(2) FOR MICRO LICENSES :
(I) 100 GROWER LICENSES ;
(II) 100 PROCESSOR LICENSES ; AND
(III) 200 10 DISPENSARY LICENSES ;
(3) FOR INCUBATOR SPACE LICENSES, 10 LICENSES; AND
(4) FOR ON–SITE CONSUMPTION LIC ENSES, 50 LICENSES.
(E) (1) THIS SUBSECTION APPLIES T O ALL LICENSES , INCLUDING
LICENSES CONVERTED U NDER SUBSECTION (B)(1)(II) OF THIS SECTION.
(2) SUBJECT TO PARAGRAPH (3) OF THIS SUBSECTION , A PERSON
MAY HAVE AN OWNERSHI P INTEREST IN OR CON TROL OF, INCLUDING THE POWER TO
MANAGE AND OP ERATE, ONLY:
(I) FOR STANDARD LICENSE S AND MICRO LICENSES :
1. ONE GROWER LICENSEE ;
2. ONE PROCESSOR LICENS EE; AND
3. NOT MORE THAN TWO FOUR DISPENSARY LICENSEES ;
(II) FOR INCUBATOR SPACE LICENSES, NOT MORE THAN TWO
LICENSEES; AND
(III) FOR ON–SITE CONSUMPTION LIC ENSES, NOT MORE THAN
TWO LICENSEES . WES MOORE, Governor Ch. 254
– 47 –
(3) (I) A PERSON WHO OWNS OR C ONTROLS AN INCUBATOR SPACE
LICENSEE OR AN ON –SITE CONSUMPTION LIC ENSEE MAY NOT OWN OR CONTROL ANY
OTHER CANNABIS LICEN SEE.
(II) THE DIVISION ADMINISTRATION SHALL ADOPT
REGULATIONS LIMITING A PERSON OR FUND FRO M ACQUIRING A NONMAJ ORITY
OWNERSHIP INTEREST I N MULTIPLE CANNABIS BUSINESSES BEYOND TH E
LIMITATIONS ESTABLIS HED UNDER THIS SUBSE CTION.
(4) THE RESTRICTIONS IN P ARAGRAPH (2) OF THIS SUBSECTION DO
NOT APPLY TO A PERSO N OR AN ENTITY WHO H OLDS AN OWNERSHIP IN TEREST ONLY
AS A PASSIVE INVESTO R.
(F) (1) THE HOLDER OF A CANNA BIS LICENSE MAY NOT SURRENDER THE
LICENSE AND APPLY FO R A NEW LICENSE IN T HE SAME OR A SIMILAR CATEGORY.
(2) THE LIMITATION UNDER PARAGRAPH (1) OF THIS SUBSECTION
APPLIES TO:
(I) AFFILIATES, HOLDING COMPANIES , PARENT COMPANIES ,
OR OTHER RELATED ENT ITIES;
(II) INDIVIDUALS AND FIRM S WITH IDENTICAL OR
SUBSTANTIALLY IDENTI CAL BUSINESS OR ECON OMIC INTERESTS ;
(III) PERSONS WITH COMMON INVES TMENTS; AND
(IV) FIRMS THAT ARE ECONO MICALLY DEPENDENT ON EACH
OTHER THROUGH CONTRA CTUAL OR OTHER RELAT IONSHIPS.
(G) A LICENSE ISSUED UNDER THIS TITLE:
(1) IS NOT PROPERTY AND DOES NOT CONFER PROP ERTY RIGHTS;
AND
(2) IS SUBJECT TO:
(I) SUSPENSION, REVOCATION , AND RESTRICTIONS
AUTHORIZED BY LAW ; AND
(II) REGULATIONS AUTHORIZ ED UNDER THIS ARTICL E.
Ch. 254 2023 LAWS OF MARYLAND
– 48 –
(H) (1) ON AND AFTER JULY 1, 2023, THE HOLDER OF A LICE NSE ISSUED
BY THE NATALIE M. LAPRADE MEDICAL CANNABIS COMMISSION WHO DOES NOT
CONVERT THE LICENSE :
(I) MAY NOT:
1. OPERATE UNDER THE LI CENSE; OR
2. RENEW THE LICENSE ; BUT
(II) MAY CONTINUE TO HOLD THE LICENSE FOR RESA LE TO
ANOTHER PERSON FOR C ONVERSION UNDER THIS SUBTITLE.
(2) THE PURCHASER OF A LI CENSE SOLD BY A LICEN SE HOLDER WHO
DOES NOT CONVERT A L ICENSE UNDER PARAGRA PH (1) OF THIS SUBSECTION I S
RESPONSIBLE FOR PAYI NG THE ONE–TIME CONVERSION FEE UNDER § 36–403 OF
THIS SUBTITLE.
(G) NOTWITHSTANDING ANY P ROVISIONS OF THIS TI TLE, THE HOLDER OF A
DISPENSARY LICENSE I SSUED BY THE NATALIE M. LAPRADE MEDICAL CANNABIS
COMMISSION WHO CONVER TS THE LICENSE OR A REGISTRANT WITH THE NATALIE
M. LAPRADE MEDICAL CANNABIS COMMISSION MAY CONTIN UE TO DELIVER
MEDICAL CANNABIS UNT IL JULY 1, 2024.
(H) A LICENSE ISSUED UNDER THIS TI TLE:
(1) IS NOT PROPERTY AND DOES NOT CONFER PROP ERTY RIGHTS; AND
(2) IS SUBJECT TO:
(I) SUSPENSION, REVOCATION, AND RESTRICTIONS
AUTHORIZED BY LAW ; AND
(II) REGULATIONS AUTHORIZ ED UNDER THIS ARTICL E.
(I) (1) ON AND AFTER JULY 1, 2023, THE HOLDER OF A LICE NSE ISSUED
BY THE NATALIE M. LAPRADE MEDICAL CANNABIS COMMISSION WHO DOES N OT
CONVERT THE LICENSE :
(I) MAY NOT:
1. OPERATE UNDER THE LI CENSE; OR
2. RENEW THE LICENSE ; BUT WES MOORE, Governor Ch. 254
– 49 –
(II) MAY CONTINUE TO HOLD THE LICENSE FOR RESAL E TO
ANOTHER PERSON FOR C ONVERSION UNDER THIS SUBTITLE.
(2) THE PURCHASER OF A LI CENSE SOLD BY A LICE NSE HOLDER WHO
DOES NOT CONVERT A L ICENSE UNDER PARAGRA PH (1) OF THIS SUBSECTION I S
RESPONSIBLE FOR PAYI NG THE ONE–TIME CONVERSION F EE UNDER § 36–403 OF
THIS SUBTITLE.
36–402.
(A) IT IS THE INTENT OF T HE GENERAL ASSEMBLY TO PRESERVE
PRODUCTION AVAILABIL ITY FOR NEW ADULT –USE CANNABIS CULTIVA TION
LICENSES ISSUED UNDE R THIS SUBTITLE.
(B) (1) IF THE LICENSE OF A C ANNABIS LICENSEE IS CONVERTED BY THE
DIVISION ADMINISTRATION UNDER § 36–401(B)(1)(II) OF THIS SUBTITLE , THE
CANNABIS LICENSEE SH ALL:
(I) IF THE LICENSEE IS A GROWER, ADHERE TO THE EXPANS ION
LIMITATIONS SPECIFIE D UNDER PARAGRAPH (2) OF THIS SUBSECTION ; AND
(II) PAY THE CONVERSION F EE REQUIRED UNDER § 36–403 OF
THIS SUBTITLE.
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH AND SUBJECT TO SUBPA RAGRAPH (III) OF THIS PARAGRAPH , ON OR
BEFORE JANUARY 1, 2026, AN OPERATIONAL BUSINESS T HAT HOLDS A GROWER
LICENSE ISSUED BEFOR E OCTOBER 1, 2022 DECEMBER 31, 2022, MAY EXPAND THE
CANOPY OF ITS OPERAT IONS AS IT EXISTED O N OCTOBER 1, 2022 DECEMBER 31,
2022, AND BASED ON FACILIT Y SQUARE FOOTAGE OF INDOOR CANOPY SPACE OR ITS
EQUIVALENT, AS CALCULATED BY THE DIVISION ADMINISTRATION IN ACCORDANCE
WITH SUBSECTION (D) OF THIS SECTION, ONLY AS FOLLOWS :
1. IF THE CANOPY IS UND ER 25,000 SQUARE FEET , TO
25,000 SQUARE FEET OR BY 25% 20%, WHICHEVER IS GREATER ;
2. IF THE CANOPY IS AT OR ABOVE 25,000 SQUARE FEET,
BY 25% 20%; OR
3. IF THE CANNABIS LICE NSEE HAS A SQUARE FO OTAGE
EXPANSION THAT WAS P REAPPROVED BEFORE OCTOBER 1, 2022 DECEMBER 31,
2022, THE PREAPPROVED EXPA NSION OR 25% 20%, WHICHEVER IS GREATER .
Ch. 254 2023 LAWS OF MARYLAND
– 50 –
(II) IF THE DIVISION ADMINISTRATION AND AN OPERATIONAL
BUSINESS DESCRIBED U NDER SUBPARAGRAPH (I) OF THIS PARAGRAPH AR E UNABLE
TO AGREE AS TO THE S QUARE FOOTAGE OF THE CANOPY EXPANSION OF THE
LICENSEE’S OPERATIONS AUTHORIZE D UNDER SUBPARAGRAPH (I) OF THIS
PARAGRAPH , THE SQUARE FOOTAGE OF THE CANOPY EXPANSION SHALL BE
CALCULATED BASED ON THE LICENSEE ’S AVERAGE CANNABIS P RODUCTION IN
CALENDAR YEARS 2021 AND 2022.
(III) AN OPERATIONAL BUSINE SS DESCRIBED UNDER
SUBPARAGRAPH (I) OF THIS PARAGRAPH MA Y BEGIN TO EXPAND IT S CANOPY OF
OPERATIONS:
1. BY NOT MORE THAN 50% OF THE TOTAL SQUARE
FOOTAGE AUTHORIZED U NDER SUBPARAGRAPH (I) OR (II) OF THIS PARAGRAPH ON
OR AFTER JANUARY 1, 2024; AND
2. FOR THE REMAINING TO TAL SQUARE FOOTAGE
AUTHORIZED UNDER SUB PARAGRAPH (I) OR (II) OF THIS PARAGRAPH ON OR AFTER
MAY 1, 2024.
(IV) A GROWER LICENSEE MAY NOT OPERATE AN INDOO R
CANOPY THAT EXCEEDS 300,000 SQUARE FEET OR ITS E QUIVALENT, AS
CALCULATED BY THE DIVISION ADMINISTRATION IN ACCORDANCE WITH
SUBSECTION (D) OF THIS SECTION, IF THE GROWER LICENSE E:
1. HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE
BEFORE OCTOBER 1, 2022; AND
2. WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022.
(C) A BUSINESS THAT IS ISS UED A NEW CANNABIS L ICENSE UNDER § 36–401
OF THIS SUBTITLE MAY NOT OPERATE AN INDOO R CANOPY THAT EXCEED S 300,000
SQUARE FEET FOR INDO OR CANOPIES OR ITS E QUIVALENT, AS CALCULATED BY THE
DIVISION ADMINISTRATION .
(D) (1) (I) THIS PARAGRAPH APPLIES TO ALL LICENSED GROWERS .
(II) A LICENSED GROWER SHAL L ACCURATELY CALCULA TE AND
REPORT ANNUALLY TO THE DIVISION ADMINISTRATION ITS FLOWERING CANNAB IS
PLANT CANOPY AREA .
(III) THE CANOPY AREA IS ME ASURED USING THE OUTSIDE
BOUNDARIES OF A NY AREA THAT INCLUDE S FLOWERING CANNABIS PLANTS AND ALL WES MOORE, Governor Ch. 254
– 51 –
OF THE SPACE WITHIN THE BOUNDARIES IN ACCORDANCE WITH T HE DEFINITION OF
“CANOPY” ESTABLISHED UNDER § 36–101 OF THIS TITLE.
(IV) FOR THE PURPOSE OF ME ASURING CANOPY , 1 SQUARE
FOOT OF INDOOR CANOP Y IS EQUAL TO 4 SQUARE FEET OF OUTDO OR CANOPY.
(V) THE MAXIMUM AMOUNT OF SPACE FOR CANNABIS
PRODUCTION MAY NOT E XCEED THE CANOPY AUT HORIZED UNDER THIS S ECTION.
(VI) IF THE AMOUNT OF SQUA RE FEET OF PRODUCTIO N FOR A
LICENSED GROWER EXCE EDS THE CANOPY AUTHORIZED UNDER THI S SECTION AND
§ 36–401 OF THIS SUBTITLE, THE COMMISSION MAY :
1. REDUCE THE CANOPY OF THE LICENSED GROWER BY
THE SAME PERCENTAGE AS IT EXCEEDS THE AU THORIZED CANOPY ; AND
2. SEIZE, DESTROY, CONFISCATE, OR PLACE AN
ADMINISTRATIVE HOLD ON ANY FLOWERIN G CANNABIS PLANTS PR ODUCED IN
EXCESS OF THE CANOPY .
(VII) THE ADMINISTRATION SHALL ANNUALLY REPORT TO T HE
GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE GOVERNMENT
ARTICLE, THE AMOUNT OF CANOPY AREA REPORTED TO THE ADMINISTRATION BY
LICENSED GROWERS UND ER ITEM (II) OF THIS PARAGRAPH .
(2) THE MAXIMUM AMOUNT OF CANOPY FOR AN OPERAT IONAL
BUSINESS THAT HOLDS A LICENSE ISSUED BEF ORE OCTOBER 1, 2022, SHALL BE
CALCULATED BASED ON THE MAXIMUM CANOPY O F THE LICENSEE AS
SELF–REPORTED BY THE LICE NSEE AND RECORDED BY THE DIVISION NATALIE M.
LAPRADE MEDICAL CANNABIS COMMISSION ON OR BEFORE DECEMBER 1, 2022.
(E) (1) ON OR BEFORE JULY 1, 2024, THE DIVISION ADMINISTRATION
SHALL ADOPT MINIMUM STANDARDS FOR LICENS ED GROWERS TO PROTECT THE
RIGHTS OF THE GROWER S AND EMPLOYEES CONC ERNING GRIEVANCES , LABOR
DISPUTES, WAGES, RATES OF PAY, HOURS, OR OTHER TERMS OR CO NDITIONS OF
EMPLOYMENT .
(2) THE STANDARDS SHALL , AT A MINIMUM , PROTECT THE STATE’S
INTERESTS BY PROHIBI TING A LABOR OR GANIZATION FROM ENGA GING IN
PICKETING, WORK STOPPAGES , BOYCOTTS, OR ANY OTHER ECONOMI C
INTERFERENCE WITH TH E OPERATION OF THE L ICENSED GROWER .
(3) AS A CONDITION OF LIC ENSURE, THE LICENSED GROWER SHALL:
Ch. 254 2023 LAWS OF MARYLAND
– 52 –
(I) COMPLY WITH THE STAN DARDS ADOPTED UNDER
PARAGRAPH (1) OF THIS SUBSECTION ; AND
(II) NEGOTIATE IN GOOD FA ITH WITH EMPLOYEES A ND ANY
LEGITIMATE LABOR ORG ANIZATION RECOGNIZED BY THE DIVISION
ADMINISTRATION .
36–403.
(A) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT HOLDS A
CANNABIS LICENS E AND WAS PHYSICALLY AND ACTIVELY ENGAGED IN THE
CULTIVATION OR PROCE SSING OF MEDICAL CAN NABIS BEFORE OCTOBER 1, 2022.
(2) EACH SUBJECT TO SUBSECTION (F) OF THIS SECTION , EACH
GROWER OR PROCESSOR SHALL PAY THE FOLLOW ING ONE–TIME CONVERSION FEE
BASED ON THE TOTAL GROSS REVE NUE OF THE GROWER OR PROCESSOR IN 2022:
(I) $100,000 IF THE GROSS REVENUE WAS LESS THAN
$1,000,000;
(II) $500,000 IF THE GROSS REVENUE WAS AT LEAST
$1,000,000, BUT NOT MORE THAN $5,000,000;
(III) $1,000,000 IF THE GROSS REVENUE WAS MORE THA N
$5,000,000, BUT NOT MORE THAN $10,000,000;
(IV) $1,500,000 IF THE GROSS REVENUE WAS MORE THAN
$10,000,000, BUT NOT MORE THAN $15,000,000;
(V) $2,000,000 IF THE GROSS REVENUE WAS MORE THAN
$15,000,000, BUT NOT MORE THAN $20,000,000; OR
(VI) $2,500,000 IF THE GROSS REVENUE WAS MORE THAN
$20,000,000.
(2) (I) SUBJECT TO SUBSECTION (E) OF THIS SECTION AND EXCEPT
AS PROVIDED IN SUBPA RAGRAPH (II) OF THIS PARAGRAPH :
1. EACH GROWER AND PROC ESSOR SHALL PAY A
ONE–TIME CONVERSION FEE OF 10% OF THE TOTAL GROSS R EVENUE OF THE
GROWER OR PROCESSOR IN 2022, BUT NOT MORE THAN $2,000,000; AND
WES MOORE, Governor Ch. 254
– 53 –
2. EACH DISPENSARY SHAL L PAY A ONE –TIME
CONVERSION FEE OF 8% OF THE TOTAL GROSS R EVENUE OF THE DISPEN SARY IN
2022, BUT NOT MORE THAN $2,000,000.
(II) THE AMOUNT OF THE CON VERSION FEES IN SUBP ARAGRAPH
(I) OF THIS PARAGRAPH MA Y NOT BE LESS THAN $100,000.
(3) IF A BUSINESS HOLDS A GROWER AND PROCESSOR LICENSE, THE
FEE SHALL BE BASED O N TOTAL GROSS REVENU E FROM BOTH LICENSE TYPES.
(B) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT HOLDS A
CANNABIS LICENSE AND WAS PHYSICALLY AND A CTIVELY ENGAGED IN T HE
DISPENSING OF MEDICA L CANNABIS BEFORE OCTOBER 1, 2022.
(2) EACH SUBJECT TO SUBSECTION (F) OF THIS SECTION , EACH
DISPENSARY SHALL PAY THE FOLLOW ING ONE–TIME CONVERSION FEE BASED ON
THE GROSS REVENUE OF THE DISPENSARY IN 2022:
(I) $100,000 IF THE GROSS REVENUE WAS LESS THAN
$1,000,000;
(II) $250,000 IF THE GROSS REVENUE WAS AT LEAST
$1,000,000, BUT NOT MORE THAN $5,000,000;
(III) $500,000 IF THE GROSS REVENUE WAS MORE THAN
$5,000,000, BUT NOT MORE THAN $10,000,000;
(IV) $1,000,000 IF THE GROSS REVENUE WAS MORE THAN
$10,000,000, BUT NOT MORE THAN $15,000,000;
(V) $1,500,000 IF THE GROSS REVENUE WAS MORE THAN
$15,000,000, BUT NOT MORE THAN $20,000,000; OR
(VI) $2,000,000 IF THE GROSS REVENUE WAS MORE THAN
$20,000,000.
(C) (B) (1) THIS SUBSECTION APPLI ES ONLY TO A BUSINES S THAT:
(I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE
OCTOBER 1, 2022; AND
(II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022.
Ch. 254 2023 LAWS OF MARYLAND
– 54 –
(2) A SUBJECT TO SUBSECTION (F) (E) OF THIS SECTION, A GROWER
OR PROCESSOR SHALL P AY A ONE–TIME CONVERSION FEE OF $50,000.
(3) A SUBJECT TO SUBSECTION (F) (E) OF THIS SECTION , A
DISPENSAR Y SHALL PAY A ONE –TIME CONVERSION FEE OF $25,000.
(D) (C) (1) THIS SUBSECTION APPLI ES ONLY TO AN APPLIC ANT
APPLYING FOR A CANNA BIS LICENSE UNDER § 36–404 OF THIS SUBTITLE.
(2) AN APPLICANT FOR A ST ANDARD LICENSE , AN INCUBATOR SPACE
LICENSE, OR AN ON–SITE CONSUMPTION LIC ENSE SHALL PAY AN AP PLICATION FEE
OF $5,000.
(3) AN APPLICANT FOR A MI CRO LICENSE SHALL PA Y AN
APPLICATION FEE OF $1,000.
(E) (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE
DIVISION PARAGRAPHS (2) AND (3) OF THIS SUBSECTION, THE ADMINISTRATION
SHALL ESTABLISH LICENSING AND RENEWAL FEES FOR ALL CANNABIS LICENSES .
(2) THE RENEWAL FEES ESTA BLISHED UNDER PARAGR APH (1) OF
THIS SUBSECTION MAY NOT EXCEED 10% OF THE CANNABIS LICE NSEE’S ANNUAL
GROSS REVENUE .
(2) EXCEPT AS PROVIDED IN PARAGRAPH (3) OF THIS SUBSECTION ,
THE LICENSING AND RE NEWAL FEES ESTABLISH ED UNDER PARAGRAPH (1) OF THIS
SUBSECTION FOR STAND ARD CANNABIS LICENSE ES MAY NOT EXCEED :
(I) FOR INITIAL LICENSE FEES, $50,000; AND
(II) FOR RENEWAL LI CENSE FEES, THE LESSER OF 10% OF THE
STANDARD CANNABIS LI CENSEE’S ANNUAL GROSS REVEN UE OR $50,000.
(3) THE ADMINISTRATION SHALL REDUCE LICENSING AND RENEWAL
FEES BY AT LEAST 50% FOR SOCIAL EQUITY LI CENSES, MICRO LICENSES , INCUBATOR
SPACE LICENSES , AND ON–SITE CONSUMPTION LIC ENSES.
(F) (E) (1) THE ONE–TIME CONVERSION FEES UNDER THIS SECTION :
(I) MAY BE PAID IN SEPAR ATE INSTALLMENTS ; AND
(II) SHALL BE PAID IN FUL L ON OR BEFORE JANUARY 1, 2025.
WES MOORE, Governor Ch. 254
– 55 –
(2) THE AMOUNT OF ANY LICENSING OR RENEWAL FEE PAID BY A
BUSINESS FOR FISCAL YEAR 2023 TO THE NATALIE M. LAPRADE MEDICAL
CANNABIS COMMISSION SHALL BE C REDITED AGAINST THE ONE–TIME CONVERSION
FEE ASSESSED UNDER T HIS SECTION.
(G) (F) ALL FEES COLLECTED UN DER THIS SECTION SHA LL BE PAID TO
THE DIVISION ADMINISTRATION .
36–404.
(A) (1) ON OR BEFORE JANUARY 1, 2024, THE DIVISION
ADMINISTRATION SHALL BEGIN ISSUING FIRST ROUND LICENSES IN ACCORDANCE
WITH SUBSECTION (D) OF THIS SECTION.
(2) ON OR AFTER MAY 1, 2024, THE DIVISION ADMINISTRATION
SHALL BEGIN ISSUING SECOND ROUND LICENSES IN ACCORDAN CE WITH
SUBSECTIONS (E) OR (F) OF THIS SECTION.
(3) SUBJECT TO PARAGRAPHS (1) AND (2) OF THIS SUBSECTION , THE
DIVISION ADMINISTRATION MAY ISSUE LICENSES I N ACCORDANCE WITH
SUBSECTION (G) OF THIS SECTION.
(B) (1) THE DIVISION ADMINISTRATION SHALL:
(I) CONDUCT EXTENSIVE OU TREACH TO SMALL , MINORITY,
AND WOMEN BUSINESS O WNERS AND ENTREPRENE URS WHO MAY HAVE AN INTEREST
IN APPLYING FOR A CA NNABIS LICENSE BEFOR E ACCEPTING AND PROC ESSING
CANNABIS LICENSE APP LICATIONS;
(II) CONNECT POTENTIAL SO CIAL EQUITY APPLICAN TS WITH
THE OFFICE OF SOCIAL EQUITY;
(III) ACCEPT AND PROCESS A PPLICATIONS FOR LICE NSES:
1. IN RESPONSE TO A REQ UEST FOR APPLICATION S
ISSUED UNDER THIS SE CTION;
2. FOR A PERIOD OF 30 CALENDAR DAYS; AND
3. BEGINNING ON A DATE THAT IS AT LEAST 60
CALENDAR DAYS AFTER THE DATE ON WHICH TH E DIVISION ADMINISTRATION
ISSUED THE REQUEST F OR APPLICATIONS ;
Ch. 254 2023 LAWS OF MARYLAND
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(IV) AWARD CANNABIS LICEN SES IN AT LEAST TWO SEPARATE
ROUNDS IN ACCORDANCE WITH THIS SECTION; AND
(V) RESERVE A REASONABLE NUMBER OF LICENSES T O ALLOW
MICRO LICENSES TO TR ANSITION TO STANDARD LICENSES, AS DETERMINED IN
REGULATIONS BY THE DIVISION ADMINISTRATION .
(2) THE DIVISION ADMINISTRATION MAY SUSPEND , FINE, RESTRICT,
OR REVOKE A CANNABIS LICENSE IF IT IS DETERMINED THA T A CANNABIS LICENSE E
HAS NOT COMPLIED WIT H STATEMENTS IN THE APPLICATION, INCLUDING
STATEMENTS ABOUT STA NDARDS OF OPERATION OR EMPLOYMENT PRACTI CES
RELATED TO DIVERSITY , EQUITY, AND INCLUSION .
(3) THE DIVISION ADMINISTRATION MAY NOT:
(I) ACCEPT MORE THAN ONE APPLICATION PER LICE NSE TYPE
FROM AN APPLICANT IN ANY ROUND;
(II) ACCEPT MORE THAN TWO APPLICATIONS FROM AN
APPLICANT IN ANY ROU ND;
(III) REQUIRE THAT AN APPL ICANT POSSESS OR OWN A
PROPERTY OR FACILITY TO OPERATE A CANNABI S BUSINESS AT THE TI ME OF
APPLICATION; OR
(IV) REGARDLESS OF THE NU MBER OF LICENSE AWAR DS
AUTHORIZED IN EACH R OUND, AWARD MORE LICENSES THAN THE TOTAL NUMBE R
OF LICENSES AUTHORIZED UNDER § 36–401(D) OF THIS SUBTITLE; OR
(V) CONDUCT A MARKET DEM AND STUDY BEFORE THE FIRST
ROUND LICENSES ARE I SSUED.
(4) THE DIVISION ADMINISTRATION MAY ADOPT REGULATION S
CONCERNING THE EQUIT Y AND FAIRNESS OF TH E POOL OF APPLICANTS
THROUGHOUT THE APPLICATI ON PROCESS.
(C) TO BE LICENSED , AN APPLICANT SHALL S UBMIT TO THE DIVISION
ADMINISTRATION :
(1) AN APPLICATION FEE I N ACCORDANCE WITH § 36–403 OF THIS
SUBTITLE; AND
WES MOORE, Governor Ch. 254
– 57 –
(2) AN APPLICATION DEVEL OPED BY THE DIVISION ADMINISTRATION
UNDER THIS TITLE.
(D) (1) FOR THE FIRST ROUND , SUBJECT TO PARAGRAPH S (2) AND (3) OF
THIS SUBSECTION , THE DIVISION ADMINISTRATION SHALL ENTER EACH SOC IAL
EQUITY APPLICANT THA T MEETS THE MINIMUM QUALIFICATIONS ESTAB LISHED BY
THE DIVISION ADMINISTRATION INTO A LOTTERY AND ISSUE TO SOCIAL EQUITY
APPLICANTS NOT MORE THAN:
(I) FOR STANDARD LICENSE S:
1. 20 GROWER LICENSES ;
2. 40 PROCESSOR LICENSES ; AND
3. 80 DISPENSARY LICENSES ;
(II) FOR MICRO LICENSES :
1. 30 GROWER LICENSES ;
2. 30 PROCESSOR LICENSES ; AND
3. 75 10 DISPENSARY LICENSES ; AND
(III) 10 INCUBATOR SPACE LICE NSES.
(2) THE DIVISION ADMINISTRATION SHALL DETERMINE WHET HER
AN APPLICATION MEETS THE MINIMUM QUALIFIC ATIONS FOR THE LOTTE RY ON A
PASS–FAIL BASIS, AS DETERMINED BY THE DIVISION ADMINISTRATION , AFTER
EVALUATING:
(I) A DETAILED OPERATION AL PLAN FOR THE SAFE , SECURE,
AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS;
(II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF
SUCCESS AND SUFFICIE NT BUSINESS ABILITY AND EXPERIENCE ON TH E PART OF
THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING
CONDITIONS; AND
(III) A DETAILED DIVERSITY PLAN.
(3) (I) IF AN APPLICANT SEEKI NG SOCIAL EQUITY STA TUS IS FROM
OUT–OF–STATE, THE APPLICANT MUST S UBMIT WITH THE APPLI CATION EVIDENCE Ch. 254 2023 LAWS OF MARYLAND
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THAT THE APPLICANT M EETS THE CRITERIA FO R A SOCIAL EQUITY AP PLICANT
ESTABLISHED UNDER TH IS TITLE BEFORE THE ADMINISTRATION MAY CO NSIDER
THE APPLICATION .
(II) FIRST ROUND APPLICATI ON SUBMISSIONS FOR A LL
LICENSE TYPES ARE LI MITED TO SOCIAL EQUI TY APPLICANTS.
(4) (I) ON OR BEFORE JANUARY 1, 2024, THE ADMINISTRATION
SHALL SUBMIT AN INTE RIM REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE ABILITY OF MI CRO
DISPENSARY LICENSEES TO SAFELY AND SECURE LY DISPENSE CANNABIS .
(II) ON OR BEFORE DECEMBER 31, 2024, THE ADMINISTRATION
SHALL SUBMIT A R EPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH §
2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE ABILITY OF MI CRO
DISPENSARY LICENSEES TO SAFELY AND SECURE LY DISPENSE CANNABIS .
(E) FOR THE SECOND ROUND OF LICENSING , THE DIVISION
ADMINISTRATION SHALL ISSUE LICENSES IN AC CORDANCE WITH SUBSEC TION (F)
OR (G) OF THIS SECTION.
(E) (F) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IF THE
DIVISION ADMINISTRATION , IN CONSULTATION WITH THE CERTIFICATION AG ENCY
DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER § 14–303(B) OF THE STATE
FINANCE AND PROCUREMENT ARTICLE, THE GOVERNOR’S OFFICE OF SMALL,
MINORITY, AND WOMEN BUSINESS AFFAIRS, THE GENERAL ASSEMBLY, AND THE
OFFICE OF THE ATTORNEY GENERAL, DETERMINES THAT THE APPLICANTS
AWARDED A LICENSE UN DER SUBSECTION (D) OF THIS SECTION ARE NOT DIVERSE
AND A DISPARITY STUD Y DETERMINES THAT TH ERE IS A COMPELLING INTEREST TO
IMPLEMENT REMEDIAL M EASURES TO ASSIST MI NORITIES AND WOMEN I N THE
CANNABIS INDUSTRY A DISPARITY STUDY DE MONSTRATES A STRONG BASIS IN
EVIDENCE OF BU SINESS DISCRIMINATIO N AGAINST FIRMS OWNE D BY MINORITIES
AND WOMEN IN THE MARYLAND CANNABIS MAR KET, THE DIVISION
ADMINISTRATION SHALL ENTER EACH APPLICANT THAT MEETS THE MINIMUM
QUALIFICATIONS ESTAB LISHED BY THE DIVISION INTO A LOTTE RY AND ISSUE TO
THE APPLICANTS A SECOND ROUND OF LI CENSES, APPLYING MINIMUM LIC ENSING
QUALIFICATIONS AND EMPLOYING REMEDIAL M EASURES CONSISTENT W ITH
CONSTITUTIONAL REQUI REMENTS, FOR NOT MORE THAN :
(I) FOR STANDARD LICENSE S:
1. 25 GROWER LICENSES ;
WES MOORE, Governor Ch. 254
– 59 –
2. 25 PROCESSOR LICENSES; AND
3. 120 DISPENSARY LICENSES ;
(II) FOR MICRO LICENSES :
1. 70 GROWER LICENSES ; AND
2. 70 PROCESSOR LICENSES ; AND
3. 125 190 DISPENSARY LICENSES ;
(III) 10 INCUBATOR SPACE LICE NSES; AND
(IV) 15 ON–SITE CONSUMPTION LICENSES.
(2) THE DIVISION SHALL DETERM INE WHETHER AN APPLI CATION
MEETS THE MINIMUM QU ALIFICATIONS FOR A L OTTERY BASED ON A PA SS–FAIL
BASIS, AS DETERMINED BY THE DIVISION, AFTER EVALUATING :
(I) A DETAILED OPERATION AL PLAN FOR THE SAFE , SECURE,
AND EFFECTIVE CULTIVATIO N, MANUFACTURE , OR DISPENSING OF CAN NABIS;
(II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF
SUCCESS AND SUFFICIE NT BUSINESS ABILITY AND EXPERIENCE ON TH E PART OF
THE APPLICANT , AND PROVIDING FOR AP PROPRIATE EMPLOYEE W ORKING
CONDITIONS;
(III) A DETAILED DIVERSITY PLAN; AND
(IV) REMEDIAL MEASURES ES TABLISHED IN ACCORDA NCE
WITH A DISPARITY STU DY.
(2) IF THE DIVISION ADMINISTRATION , IN CONSULTATION WITH THE
CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER §
14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE
GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE
GENERAL ASSEMBLY, AND THE OFFICE OF THE ATTORNEY GENERAL, DETERMINES
THAT A LOTTERY SYSTE M EMPLOYING REMEDIAL MEASURES ESTABLISHED IN
ACCORDANCE WITH A DI SPARITY STUDY CAN BE CONDUCTED CONSISTENT WITH
CONSTITUTIONAL REQUI REMENTS, THE DIVISION ADMINISTRATION SHALL AWARD
LICENSES UNDER P ARAGRAPH (1) OF THIS SUBSECTION T HROUGH A LOTTERY
PROCESS THAT EMPLOYS REMEDIAL MEASURES .
Ch. 254 2023 LAWS OF MARYLAND
– 60 –
(F) (G) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS
SUBSECTION, IF THE DIVISION ADMINISTRATION , IN CONSULTATION WITH THE
CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER §
14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE
GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE
GENERAL ASSEMBLY, AND THE OFFICE OF THE ATTORNEY GENERAL, DETERMINES
THAT THE APPLICANTS AWARDED A LICENSE UNDER SUBS ECTION (D) OF THIS
SECTION ARE DIVERSE REGARDLESS OF THE RE SULTS OF A DISPARITY STUDY DOES
NOT DEMONSTRATE A ST RONG BASIS IN EVIDEN CE OF BUSINESS DISCR IMINATION
AGAINST FIRMS OWNED BY MINORITIES AND WO MEN IN THE MARYLAND CANNABIS
MARKET, THE DIVISION ADMINISTRATION SHALL ENTER EACH APP LICANT THAT
MEETS THE MINIMUM QU ALIFICATIONS ESTABLI SHED BY THE DIVISION
ADMINISTRATION INTO A LOTTERY AND I SSUE TO THE APPLICAN TS NOT MORE
THAN:
(I) FOR STANDARD LICENSE S:
1. 25 GROWER LICENSES ;
2. 25 PROCESSOR LICENSES ; AND
3. 120 DISPENSARY LICENSES ;
(II) FOR MICRO LICENSES :
1. 70 GROWER LICENSES ; AND
2. 70 PROCESSOR LICENSES ; AND
3. 125 190 DISPENSARY LICENSES ;
(III) 10 INCUBATOR SPACE LICE NSES; AND
(IV) 15 ON–SITE CONSUMPTION LIC ENSES.
(2) THE DIVISION ADMINISTRATION SHALL DETERMINE WHET HER
AN APPLICATION MEETS THE MINIMUM QUALIFIC ATIONS FOR A LOTTERY BASED ON
A PASS–FAIL BASIS, AS DETERMINED BY THE DIVISION ADMINISTRATION , AFTER
EVALUATING:
(I) A DETAILED OPERATIONAL P LAN FOR THE SAFE , SECURE,
AND EFFECTIVE CULTIV ATION, MANUFACTURE , OR DISPENSING OF CAN NABIS;
WES MOORE, Governor Ch. 254
– 61 –
(II) A BUSINESS PLAN DEMO NSTRATING A LIKELIHO OD OF
SUCCESS AND SUFFICIE NT BUSINESS ABILITY AND EXPERIENCE ON TH E PART OF
THE APPLICANT , AND PROVIDING FOR APPR OPRIATE EMPLOYEE WOR KING
CONDITIONS;
(III) A DETAILED DIVERSITY PLAN; AND
(IV) FOR ALL LICENSE TYPE S EXCEPT MICRO LICEN SES,
WHETHER OR NOT THE A PPLICANT QUALIFIES A S A SOCIAL EQUITY AP PLICANT.
(3) SECOND ROUND APPLICAT ION APPLICATION SUBMISSIONS FOR
MICRO LICENSES UNDER THIS SUBSECTION ARE LIMITED TO SOCIAL EQ UITY
APPLICANTS.
(G) (H) (1) FOR CANNABIS LICENSE AWARDS SUBSEQUENT TO THE
ROUND SPECIFIED UNDE R PARAGRAPH (2) SUBSECTION (F) OR (G) OF THIS
SUBSECTION SECTION, THE DIVISION ADMINISTRATION SHALL AWARD LICENSES IN
ACCORDANCE WITH THIS SUBSECTION.
(2) THE DIVISION ADMINISTRATION SHALL AWARD LICENSES AS
NEEDED IN ACCORDANCE WITH A MARKET DEMAND STUDY.
(2) (3) THE DIVISION ADMINISTRATION MAY:
(I) SHALL DETERMINE WHETHER AN APPLICATI ON MEETS THE
MINIMUM QUALIFICATIO NS FOR A LOTTERY BAS ED ON FACTORS THAT I T DEVELOPS;
AND
(II) MAY LIMIT SOME OR ALL OF THE LICENSES ISSUED UNDER
THIS PARAGRAPH TO SO CIAL EQUITY APPLICAN TS OR MINORITY BUSINESS
APPLICANTS, IF DOING SO IS NEEDED TO ENSU RE DIVERSITY AND INC LUSION IN THE
INDUSTRY, AS WARRANTED BY THE DISPARITY STUDY ; AND
(II) EMPLOY REMEDIAL MEAS URES, CONSISTENT WITH
CONSTITUTIONAL REQUI REMENTS, IF THE DIVISION ADMINISTRATION , IN
CONSULTATION WITH TH E CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF
PUBLIC WORKS UNDER § 14–303(B) OF THE STATE FINANCE AND PROCUREMENT
ARTICLE, THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS
AFFAIRS, THE GENERAL ASSEMBLY, AND THE OFFICE OF THE ATTORNEY
GENERAL, DETERMINES TH AT A DISPARITY STUDY DEMONSTRATES A STRON G BASIS
IN EVIDENCE OF BUSIN ESS DISCRIMINATION A GAINST FIRMS OWNED B Y MINORITIES
AND WOMEN IN THE MARYLAND CANNABIS MAR KET.
Ch. 254 2023 LAWS OF MARYLAND
– 62 –
(I) (1) TO THE EXTENT PRACTIC ABLE AND AUTHORIZED BY THE U.S.
CONSTITUTION, A CANNABIS LICENSEE SHALL COMPL Y WITH THE STATE’S
MINORITY BUSINESS ENTERPRISE PROGRAM.
(2) THE ADMINISTRATION , IN CONSULTATION WITH THE
CERTIFICATION AGENCY DESIGNATED BY THE BOARD OF PUBLIC WORKS UNDER §
14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE, THE GOVERNOR’S
OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS, THE GENERAL
ASSEMBLY, AND THE OFFICE OF THE ATTORNEY GENERAL, SHALL REVIEW THE
DISPARITY STUDY REQU IRED BY CHAPTER 26 OF THE ACTS OF 2022 TO EVALUATE
WHETHER APPLICATION OF THE STATE’S MINORITY BUSINESS ENTERPRISE
PROGRAM TO CANNABIS L ICENSES WOULD COMPLY WITH THE CITY OF RICHMOND V.
J.A. CROSON CO., 488 U.S. 469, AND ANY SUBSEQUENT F EDERAL OR
CONSTITUTIONAL REQUI REMENTS.
(3) ON OR BEFORE 6 MONTHS AFTER THE ISS UANCE OF A CANNABIS
LICENSE UNDER § 36–401 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE,
THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS AFFAIRS,
IN CONSULTATION WITH THE OFFICE OF THE ATTORNEY GENERAL AND THE OFFICE
OF SOCIAL EQUITY WITHIN THE ALCOHOL, TOBACCO, AND CANNABIS COMMISSION
AND THE CANNABIS LIC ENSEE, SHALL ESTABLISH A CL EAR PLAN FOR SETTING
REASONABLE AND APPRO PRIATE MINORITY BUSI NESS ENTERPRISE PART ICIPATION
GOALS AND PROCEDURES FOR THE PROCUREMENT OF GOODS AND SERVICE S
RELATED TO CANNABIS , INCLUDING THE CULTIVATION, MANUFACTURING , AND
DISPENSING OF CANNAB IS.
(4) TO THE EXTENT PRACTIC ABLE, THE GOALS AND PROCED URES
SPECIFIED IN PARAGRA PH (3) OF THIS SUBSECTION S HALL BE BASED ON THE
REQUIREMENTS OF TITLE 14, SUBTITLE 3 OF THE STATE FINANCE AND
PROCUREMENT ARTICLE AND THE REGUL ATIONS IMPLEMENTING THAT SUBTITLE.
36–405.
(A) A LOCAL JURISDICTION POLITICAL SUBDIVISIO N MAY:
(1) ESTABLISH REASONABLE ZONING REQUIREMENTS FOR CANNABIS
BUSINESSES; AND
(2) DECIDE HOW TO DISTRI BUTE ITS ALLOCATION OF REVENUE
UNDER § 2–1302.2 OF THE TAX – GENERAL ARTICLE.
(B) A LOCAL JURISDICTION POLITICAL SUBDIVISIO N MAY NOT:
WES MOORE, Governor Ch. 254
– 63 –
(1) IMPOSE A TAX ON CANN ABIS;
(2) (1) ESTABLISH ZONING OR OTHER REQUIREMENTS T HAT
UNDULY BURDEN A CANN ABIS LICENSEE;
(3) (2) IMPOSE LICENSING, OPERATING, OR OTHER FEES OR
REQUIREMENTS ON A CA NNABIS LICENSEE THAT ARE DISPROPORTIONATE LY
GREATER OR MORE BURD ENSOME THAN THOSE IM POSED ON OTHER BUSIN ESSES
WITH A SIMILAR IMPAC T ON THE AREA WHERE THE CANNABIS LICENSE E IS
LOCATED;
(3) PROHIBIT TRANSPORTATION TH ROUGH OR DELIVERIES WITHIN
THE LOCAL JURISDICTION POLITICAL SUBDIVISIO N BY CANNABIS ESTABLISHMENTS
BUSINESSES LOCATED IN OTHER JURISDICTIONS POLITICAL SUBDIVISIO NS;
(4) PREVENT AN ENTITY WH OSE LICENSE MAY BE C ONVERTED UNDER
§ 36–401(B)(1)(II) OF THIS SUBTITLE AND THAT IS IN COMPLIANC E WITH ALL
RELEVANT MEDICAL CAN NABIS REGULATIONS FR OM BEING GRANTED THE LICENSE
CONVERSION ; OR
(5) NEGOTIATE OR ENTER I NTO AN AGREEMENT WIT H A CANNABIS
ESTABLISHMENT OR A C ANNABIS ESTABLISHMEN T APPLICANT LICENSEE OR AN
APPLICANT FOR A CANN ABIS LICENSE REQUIRING THAT THE C ANNABIS
ESTABLISHMENT LICENSEE OR APPLICANT PROVIDE MONEY, DONATIONS,
IN–KIND CONTRIBUTIONS , SERVICES, OR ANYTHING OF VALUE TO THE LOCAL
JURISDICTION POLITICAL SUBDIVISIO N.
(C) THE USE OF A FACILITY BY A CANNABIS LICENS EE IS NOT REQUIRED T O
BE SUBMITTED TO , OR APPROVED BY , A COUNTY OR MUNICIPA L ZONING BOARD ,
AUTHORITY, OR UNIT IF IT THE FACILITY:
(1) WAS PROPERLY ZONED A ND OPERATING ON OR B EFORE JANUARY
1, 2023; OR
(2) IS USED BY A GROWER , PROCESSOR, OR DISPENSARY THAT :
(I) HELD A STAGE ONE PREAPPROVAL FOR A LIC ENSE BEFORE
OCTOBER 1, 2022; AND
(II) WAS NOT OPERATIONAL BEFORE OCTOBER 1, 2022.
(D) A POLITICAL SUBDIVISIO N OR SPECIAL TAXING DISTRICT MAY NOT
IMPOSE A TAX ON CANNABIS .
Ch. 254 2023 LAWS OF MARYLAND
– 64 –
36–406.
(A) THE DIVISION ADMINISTRATION MAY ISSUE INCUBATOR SPACE
LICENSES AUTHORIZING AN A NONPROFIT ENTITY TO OPERATE A LICENSED
PREMISES IN WHICH MI CRO LICENSEES MAY OP ERATE A CANNABIS BUS INESS.
(B) SUBJECT TO SUBSECTION (C) (D) OF THIS SECTION , THE MARYLAND
ECONOMIC DEVELOPMENT CORPORATION , IN CONSULTATION WITH THE DIVISION
ADMINISTRATION , SHALL ACQUIRE AND CO NSTRUCT OR REFURBISH AT LEAST ONE
FACILITY TO OPERATE AN INCUBATOR SPACE .
(C) THE MARYLAND ECONOMIC DEVELOPMENT CORPORAT ION MAY ENTER
INTO A MEMORANDUM OF UNDERSTANDING WITH A NONPROFIT ORGANIZATI ON TO
OPERATE A FACILITY U NDER SUBSECTION (B) OF THIS SECTION IF T HE DIVISION
AND THE CORPORATION PROVIDE O VERSIGHT OF THE FACI LITY.
(C) AFTER THE COMPLETION OF THE CONSTRUCTION OR REFURBISHMENT
OF A FACILITY ACQUIR ED UNDER SUBSECTION (B) OF THIS SECTION, OWNERSHIP OF
THE FACILITIES SHALL BE TRANSFERRED TO TH E DEPARTMENT OF GENERAL
SERVICES.
(D) THE DEPARTMENT OF GENERAL SERVICES SHALL CONTRA CT WITH A
NONPROFIT ORGANIZATI ON TO OPERATE A FACILITY U NDER SUBSECTION (B) OF
THIS SECTION.
(D) (E) AN INCUBATOR SPACE LI CENSEE MAY PURCHASE EQUIPMENT TO
BE USED BY OTHER INC UBATOR SPACE LICENSE ES IN THE SAME INCUB ATOR SPACE.
(D) (E) (F) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATIONS TO
ESTABLISH A MARYLAND INCUBATOR PROGRAM BASED ON THE BEST PRACTICES IN
OTHER STATES .
36–407.
(A) (1) A PERSON SHALL OBTAIN AN ON–SITE CONSUMPTION LIC ENSE
FROM THE ADMINISTRATION BEFORE OPERATING A PREMISES WHERE CANNABIS
MAY BE CONSUMED .
(2) THE DIVISION ADMINISTRATION MAY ISSUE ON –SITE
CONSUMPTION LICENSES AUTHORIZING AN ENTIT Y TO OPERATE A LICEN SED
PREMISES IN WHICH CA NNABIS MAY BE CONSUMED , BUT NOT SMOKED INDOO RS, IN
ACCORDANCE WITH THIS TITLE AND ANY REGULA TIONS ADOPTED UNDER THIS
TITLE. WES MOORE, Governor Ch. 254
– 65 –
(2) (3) AN ON–SITE CONSUMPTION EST ABLISHMENT MAY OPERA TE
ONLY IF THE COUNTY A ND, IF APPLICABLE , THE MUNICIPALITY , WHERE THE
BUSINESS IS LOCATED HAVE ISSUED A PERMIT OR LICENSE THAT EXPR ESSLY
ALLOWS THE OPERATION OF THE ON–SITE CONSUMPTION EST ABLISHMENT.
(B) SUBJECT TO THE LIMITA TIONS IN § 36–405 OF THIS SUBTITLE , A
COUNTY AND, IF APPLICABLE, A MUNICIPALITY MAY :
(1) PROHIBIT THE OPERATI ON OF ON –SITE CONSUMPTION
ESTABLISHMENTS ;
(2) PROHIBIT OR RESTRICT THE SMOKING OR VAPIN G OF CANNABIS
AT ON–SITE CONSUMPTION EST ABLISHMENTS ; OR
(3) ADOPT ZONING AND PLA NNING REQUIREMENTS F OR ON–SITE
CONSUMPTION ESTABLIS HMENTS.
(C) (1) AN ON–SITE CONSUMPTION LIC ENSE AUTHORIZES AN E NTITY TO
DISTRIBUTE CANNABIS OR CANNABIS PRODUCTS FOR ON–SITE CONSUMPTION .
(2) AN ON–SITE CONSUMPTION LIC ENSE DOES NOT AUTHOR IZE THE
HOLDER OF THE LICENS E TO:
(I) CULTIVATE CANNABIS ;
(II) PROCESS CANNABIS OR CANNABIS–INFUSED PRODUCTS ; OR
(III) ADD CANNABIS TO FOOD PREPARED OR SERVED O N THE
PREMISES.
(D) A FOOD SERVICE FACILITY , AS DEFINED IN § 21–301 OF THE HEALTH –
GENERAL ARTICLE, MAY APPLY FOR A LICE NSE TO OPERATE AN ON –SITE
CONSUMPTION ESTABLIS HMENT.
(E) THE DIVISION SHALL:
(D) A BUSINESS THAT HAS AV ERAGE DAILY RECEIPTS FROM THE SALE OF
BAKERY GOODS THAT ARE AT LEAST 50% OF THE AVERAGE DAILY RECEIPTS OF THE
BUSINESS MAY APPLY F OR A LICENSE TO OPER ATE AN ON–SITE CONSUMPTION
ESTABLISHMENT .
(E) THE ADMINISTRATION SHALL :
Ch. 254 2023 LAWS OF MARYLAND
– 66 –
(1) MAINTAIN A LIST OF A LL ON–SITE CONSUMPTION
ESTABLISHMENTS IN TH E STATE; AND
(2) MAKE THE LIST AVAILA BLE ON ITS WEBSITE .
(F) AN ON–SITE CONSUMPTION EST ABLISHMENT MAY NOT :
(1) ALLOW ON–DUTY EMPLOYEES OF TH E BUSINESS TO CONSUM E
CANNABIS ON THE LICE NSED PREMISES ;
(2) DISTRIBUTE OR ALLOW THE DISTRIBUTION OF FREE SAMPLES OF
CANNABIS ON THE LICE NSED PREMISES ;
(3) ALLOW THE CONSUMPTIO N OF ALCOHOL ON THE LICENSED
PREMISES;
(4) ALLOW THE SMOKING OR VAPING OF TOBACCO OR TOBACCO
PRODUCTS ON THE LICE NSED PREMISES ;
(5) ALLOW AN ACTIVITY ON THE LICENSED PREMISE S THAT WOULD
REQUIRE AN ADDITIONAL LICENSE UNDER THIS T ITLE, INCLUDING GROWING ,
PROCESSING, OR DISPENSING ;
(6) ALLOW THE INDOOR SMO KING OF CANNABIS OR CANNABIS
PRODUCTS ON THE LICE NSED PREMISES ;
(7) ALLOW THE USE OR CON SUMPTION OF CANNABIS BY A PATRON
WHO DISPLAYS ANY VISIBLE SIGNS OF INTOXICATION; OR
(7) (8) ADMIT ONTO THE LICEN SED PREMISES AN INDI VIDUAL WHO
IS UNDER THE AGE OF 21 YEARS.
(G) AN ON–SITE CONSUMPTION EST ABLISHMENT SHALL :
(1) REQUIRE ALL EMPLOYEE S TO SUCCESSFULLY CO MPLETE AN
ANNUAL RESPONSIBLE VENDOR TRAINING PROG RAM AUTHORIZED UNDER THIS
TITLE; AND
(2) ENSURE THAT THE DISP LAY AND CONSUMPTION OF CANNABIS OR
CANNABIS PRODUCTS AR E NOT VISIBLE FROM O UTSIDE OF THE LICENS ED
PREMISES.
WES MOORE, Governor Ch. 254
– 67 –
(H) (1) AN ON–SITE CANNABIS ESTABL ISHMENT SHALL EDUCAT E
CONSUMERS BY PROVIDING IN FORMATIONAL MATERIAL S REGARDING THE SAFE
CONSUMPTION OF CANNA BIS.
(2) THE EDUCATIONAL MATER IALS PROVIDED UNDER PARAGRAPH
(1) OF THIS SUBSECTION M UST BE BASED ON THE REQUIREMENTS ESTABLI SHED BY
THE CANNABIS PUBLIC HEALTH ADVISORY COUNCIL ESTABLISHED UNDE R §
13–4502 OF THE HEALTH – GENERAL ARTICLE.
(I) THIS SECTION DOES NOT PROHIBIT A COUNTY OR MUNICIPALITY FROM
ADOPTING ADDITIONAL REQUIREMENTS FOR EDU CATION ON THE SAFE
CONSUMPTION OF CANNA BIS ON THE PREMISES OF A LICENSED ON –SITE
CONSUMPTION ESTABLISH MENT.
(J) A PERSON MAY HAVE AN O WNERSHIP INTEREST IN OR CONTROL OF ,
INCLUDING THE POWER TO MANAGE AND OPERAT E, TWO ON–SITE CONSUMPTION
ESTABLISHMENTS LICEN SED UNDER THIS SECTI ON.
36–408.
(A) (1) THE DIVISION ADMINISTRATION SHALL REGISTER AT LEAST ON E
INDEPENDENT TESTING LABORATORY TO TEST C ANNABIS AND CANNABIS PRODUCTS
THAT ARE TO BE SOLD IN THE STATE.
(2) THE DIVISION ADMINISTRATION SHALL HOLD MEDICAL A ND
ADULT–USE CANNABIS TESTING TO THE SAME STANDARD S.
(B) TO BE REGISTERED AS AN INDEPENDENT TE STING LABORATORY , A
LABORATORY MUST :
(1) MEET THE APPLICATION REQUIREMENTS ESTABLI SHED BY THE
DIVISION ADMINISTRATION ;
(2) PAY AN APPLICATION F EE DETERMINED BY THE DIVISION
ADMINISTRATION ; AND
(3) MEET THE STANDARDS A ND REQUIR EMENTS FOR
ACCREDITATION , INSPECTION, AND TESTING ESTABLIS HED BY THE DIVISION
ADMINISTRATION .
(C) (1) AN INDEPENDENT TESTIN G LABORATORY LICENSE IS VALID FOR
2 YEARS ON INITIAL LIC ENSURE.
Ch. 254 2023 LAWS OF MARYLAND
– 68 –
(2) AN INDEPENDENT TESTIN G LABORATORY LICENSE IS VALID FOR
2 YEARS ON RENEWAL .
(D) A REGISTERED INDEPENDE NT TESTING LABORATOR Y IS AUTHORIZED
TO TEST AND TRANSPOR T CANNABIS AND CANNA BIS PRODUCTS ON BEHA LF OF
CANNABIS LICENSEES .
(E) (1) A LABORATORY AGENT OR AN EMPLOYEE OF AN IN DEPENDENT
TESTING LABORATORY M AY NOT RE CEIVE DIRECT OR INDI RECT FINANCIAL
COMPENSATION , OTHER THAN REASONABL E CONTRACTUAL FEES T O CONDUCT
TESTING, FROM ANY ENTITY FOR WHICH IT IS CONDUCTI NG TESTING UNDER THI S
TITLE.
(2) AN INDIVIDUAL WHO POS SESSES AN INTEREST I N OR IS A
LABORATORY AGENT EMP LOYED BY AN INDEPENDE NT TESTING LABORATOR Y, OR
AN IMMEDIATE FAMILY MEMBER OF THE INDIVI DUAL, MAY NOT POSSESS AN
INTEREST IN OR BE EM PLOYED BY A CANNABIS LICENSEE.
(F) CANNABIS AND CANNABIS PRODUCTS MAY NOT BE SOLD OR OTHERWISE
MARKETED UNDER THIS TITLE IF THE CANNABIS OR CANN ABIS PRODUCT HAS NOT
BEEN TESTED BY AN IN DEPENDENT TESTING LA BORATORY AND DETERMI NED TO
MEET THE DIVISION’S ADMINISTRATION ’S TESTING PROTOCOLS .
(G) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS THAT
ESTABLISH:
(1) THE STANDARDS AND REQUIR EMENTS TO BE MET BY AN
INDEPENDENT TESTING LABORATORY TO OBTAIN A REGISTRATION ;
(2) THE STANDARDS OF CAR E TO BE FOLLOWED BY AN INDEPENDENT
TESTING LABORATORY ; AND
(3) THE BASIS AND PROCES SES FOR DENIAL , REVOCATION , AND
SUSPENSION OF A REGISTRATION OF AN INDEPENDENT TESTI NG LABORATORY .
(H) THE DIVISION ADMINISTRATION MAY INSPECT AN INDEP ENDENT
TESTING LABORATORY R EGISTERED UNDER THIS SECTION TO ENSURE CO MPLIANCE
WITH THIS TITLE AND ANY REGULATIONS ADOP TED UNDER THIS TITLE .
(I) (1) ANY REGISTRATION TO O PERATE AN INDEPENDEN T TESTING
LABORATORY ISSUED BY THE NATALIE M. LAPRADE MEDICAL CANNABIS
COMMISSION ON OR BEFO RE JULY 1, 2023, SHALL BE VALID UNDER THIS TITLE AND WES MOORE, Governor Ch. 254
– 69 –
SHALL AUTHORIZE AN I NDEPENDENT TESTING L ABORATORY TO PERFORM TESTING
ON MEDICAL AND ADULT –USE CANNABIS AND CAN NABIS PRODUCTS .
(2) THE DIVISION ADMINISTRATION SHALL CONVERT ALL
INDEPENDENT TESTING LABORATORY REGISTRAT IONS IN ACCORDANCE W ITH THIS
SUBSECTION.
36–409.
(A) THE FOLLOWING BUSINES SES SHALL REGISTER W ITH THE DIVISION
ADMINISTRATION IN ORDER TO PROVIDE SERVICES TO A CANNAB IS LICENSEE:
(1) A TRANSPORTER ;
(2) A SECURITY GUARD AGE NCY;
(3) A WASTE DISPOSAL COM PANY; AND
(4) ANY OTHER TYPE OF CA NNABIS BUSINESS THAT IS AUTHORIZED
BY THE DIVISION ADMINISTRATION TO PROVIDE PLANT OR PRODUCT–TOUCHING
SERVICES TO CANNABIS LICENSEES.
(B) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS THAT
ESTABLISH:
(1) THE STANDARDS AND RE QUIREMENTS TO BE MET BY AN ENTITY
TO OBTAIN A REGISTRA TION UNDER THIS S UBTITLE; AND
(2) THE BASIS AND PROCES SES FOR APPROVAL , DENIAL,
REVOCATION , AND SUSPENSION OF TH E CANNABIS REGISTRAT ION.
(C) A REGISTRATION TO OPER ATE A TRANSPORTER , SECURITY GUARD
AGENCY, OR WASTE DISPOSAL CO MPANY ISSUED BY THE DIVISION NATALIE M.
LAPRADE MEDICAL CANNABIS COMMISSION ON OR BEFORE JULY 1, 2023, SHALL
BE VALID UNDER THIS TITLE AND AUTHORIZE A TRANSPORTER , SECURITY GUARD
AGENCY, OR WASTE DISPOSAL CO MPANY TO HANDLE MEDI CAL AND ADULT –USE
CANNABIS AND CANNABI S PRODUCTS.
36–410.
(A) BEGINNING JULY 1, 2023, A CANNABIS LICENSEE THAT IS OPERATING A
DISPENSARY SHALL :
Ch. 254 2023 LAWS OF MARYLAND
– 70 –
(1) ENSURE THAT IT HAS A DEQUATE SUPPLY FOR Q UALIFYING
PATIENTS AND CAREGIV ERS; AND
(2) SET ASIDE OPERATING HOURS OR DEDICATED SERVICE LINES TO
SERVE ONLY QUALIFYIN G PATIENTS AND CAREGIVERS ; AND
(3) ENSURE THAT SHELF SPACE AT LEAST 25% OF CANNABIS AND
CANNABIS PRODUCTS IN THE DISPENSARY IS AVAILABLE FOR CAN NABIS AND
CANNABIS PRODUCTS ARE FROM SOCIAL EQUITY LICENS EES AND GROWERS AND
PROCESSORS THAT DO N OT SHARE COMMON OWNERSHIP WITH THE D ISPENSARY.
(B) EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, A LICENSED
DISPENSARY MAY NOT L OCATE WITHIN:
(1) 500 FEET OF:
(I) A PRE–EXISTING PRIMARY OR SECONDARY SCHOOL IN THE
STATE, OR A LICENSED CHILD CARE CENTER OR REGISTERED FAMILY CH ILD CARE
HOME UNDER TITLE 9.5 OF THE EDUCATION ARTICLE; OR
(II) A PLAYGROUND , RECREATION CENTER , LIBRARY, OR PUBLIC
PARK; OR
(2) 1,000 FEET OF ANOTHER DISP ENSARY UNDER THIS TI TLE.
(C) A POLITICAL SUBDIVISIO N MAY ADOPT AN ORDIN ANCE REDUCING THE
DISTANCE REQUIREMENT S UNDER SUBSECTION (B) OF THIS SECTION.
(D) THE DISTANCE REQUIREM ENTS UNDER SUBSECTIO N (B) OF THIS
SECTION DO NOT APPLY TO A DISPENSARY LICE NSE THAT WAS:
(1) CONVERTED UNDER § 36–401(B)(1)(II) OF THIS SUBTITLE; AND
(2) PROPERLY ZONED AND O PERATING BEFORE JULY 1, 2023.
SUBTITLE 5. AGENT, OWNER, AND LICENSE TRANSFER REQUIREMENTS .
36–501.
(A) EACH A CANNABIS AGENT SHALL BE REGISTERED WITH T HE DIVISION
ADMINISTRATION BEFORE THE AGENT MAY VOLUNTEER OR WORK FO R A CANNABIS
LICENSEE OR CANNABIS REGISTRANT.
(B) A CANNABIS AGENT REGIS TRATION IS VALID FOR 2 YEARS. WES MOORE, Governor Ch. 254
– 71 –
(C) TO BE ELIGIBLE TO REGISTER AS A CANNABIS AGENT WITH THE
DIVISION ADMINISTRATION , A CANNABIS AGENT AN INDIVIDUAL MUST:
(1) BE AT LEAST 21 YEARS OLD; AND
(2) IF THE RECORDS ARE L EGALLY ACCESSIBLE , OBTAIN A STATE AND
NATIONAL CRIMINAL HI STORY RECORDS CHECK IN ACCORDANCE WITH § 36–505 OF
THIS SUBTITLE.
(D) THE DIVISION ADMINISTRATION MAY NOT REGISTER AS A CANNABIS
AGENT AN INDIVIDUAL WHO :
(1) DOES NOT MEET THE CR ITERIA ESTABLISHED U NDER
SUBSECTION (C) OF THIS SECTION; OR
(2) HAS BEEN CONVICTED O F OR PLEADED NOLO CO NTENDERE TO A
CRIME INVOLVING MORA L TURPITUDE, WHETHER OR NOT ANY A PPEAL OR OTHER
PROCEEDING IS PENDIN G TO HAVE THE CONVICTIO N OR PLEA SET ASIDE .
(E) THE DIVISION ADMINISTRATION MAY NOT DENY A CANNA BIS AGENT
REGISTRATION BASED O N ANY CANNABIS –RELATED OFFENSES OCC URRING BEFORE
JANUARY JULY 1, 2023.
(F) A CANNABIS LICENSEE SH ALL REQUIRE EACH REG ISTERED CANN ABIS
AGENT TO COMPLETE AN ANNUAL RESPONSIBLE V ENDOR TRAINING PROGR AM
AUTHORIZED UNDER THI S TITLE.
(G) A REGISTRATION OF A CA NNABIS AGENT ISSUED BY THE NATALIE M.
LAPRADE MEDICAL CANNABIS COMMISSION ON OR BEFO RE JULY 1, 2023, SHALL:
(1) BE VALID UNDER THIS TITLE; AND
(2) AUTHORIZE THE CANNAB IS AGENT TO BE EMPLO YED BY OR
VOLUNTEER WITH A LIC ENSED CANNABIS BUSIN ESS.
36–502.
(A) AN INDIVIDUAL A PERSON WISHING TO HOLD AN O WNERSHIP INTEREST
OF 5% OR GREATER IN , OR CONTROL OF , A CANNABIS LICENSEE SHALL SUBMIT TO
THE DIVISION ADMINISTRATION :
(1) AN APPLICATION THAT INCLUDES THE NAME , ADDRESS, AND DATE
OF BIRTH OF THE APPL ICANT; Ch. 254 2023 LAWS OF MARYLAND
– 72 –
(2) A STATEMENT SIGNED BY THE APPLICANT ASS ERTING THAT THE
APPLICANT HAS NOT PR EVIOUSLY HAD A CANNA BIS LICENSE OR CANNA BIS
REGISTRATION SUSPEND ED OR REVOKED ;
(3) A STATE AND NATIONAL CR IMINAL HISTORY RECOR DS CHECK IN
ACCORDANCE WITH § 36–505 OF THIS SUBTITLE;
(4) ANY INFO RMATION REQUIRED BY THE DIVISION
ADMINISTRATION TO COMPLETE AN INVES TIGATION INTO THE BA CKGROUND OF
THE APPLICANT , INCLUDING FINANCIAL RECORDS AND OTHER IN FORMATION
RELATING TO THE BUSI NESS AFFAIRS OF THE APPLICANT; AND
(5) AN APPLICATION FEE I N AN AMOUNT TO BE DE TERMINED BY THE
DIVISION ADMINISTRATION IN ACCORDANCE WITH T HIS SUBTITLE.
(B) THE DIVISION ADMINISTRATION MAY DENY AN APPLICAT ION IF:
(1) THE APPLICANT :
(I) FAILS TO SUBMIT THE INFORMATION REQUIRED UNDER
SUBSECTION (A) OF THIS SECTION; OR
(II) HAS BEEN CONVICTED O F OR PLEADED NOLO CO NTENDERE
TO A CRIME INVOLVING MORAL TURPITUDE , WHETHER OR NOT ANY A PPEAL OR
OTHER PROCEEDING IS PENDING TO HAVE THE CONVICTION OR PLEA S ET ASIDE; OR
(2) THE DIVISION ADMINISTRATION FINDS A SUBSTANTIAL REASON
TO DENY THE REGISTRA TION.
36–503.
(A) A CANNABIS LICENSE GRA NTED UNDER THIS TITL E IS NOT
TRANSFERABLE EXCEPT AS PROVIDED IN THIS SECTION.
(B) TO TRANSFER OWNERSHIP OR CONTROL OF A LICE NSE ISSUED UNDER
THIS TITLE, A LICENSEE:
(1) SHALL SUBMIT TO THE DIVISION ADMINISTRATION :
(I) AN APPLICATION FEE I N AN AMOUNT TO BE DE TERMINED BY
THE DIVISION ADMINISTRATION IN ACCORDANCE WITH T HIS SUBTITLE; AND
WES MOORE, Governor Ch. 254
– 73 –
(II) AN APPLICATION DEVEL OPED BY THE DIVISION
ADMINISTRATION ; AND
(2) MUST MEET THE REQUIR EMENTS FOR TRANSFER OF OWNERSHIP
OR CONTROL ESTABLISH ED BY THE DIVISION ADMINISTRATION UNDER THIS TITLE .
(C) (1) A CANNABIS LICENSEE , INCLUDING A CANNABIS LICENSEE WHOSE
LICENSE WAS CONVERTE D IN ACCORDANCE WITH § 36–401 OF THIS TITLE, MAY NOT
TRANSFER OWNERSHIP O R CONTROL OF THE LIC ENSE FOR A PERIOD OF AT LEAST 5
YEARS FOLLOWING LICE NSURE.
(2) THE 5–YEAR PERIOD SPECIFIE D IN PARAGRAPH (1) OF THIS
SUBSECTION DOES NOT INCLUDE THE TIME PER IOD THAT A BUSINESS IS
CONSIDERED BY THE DIVISION ADMINISTRATION TO BE IN A PREAPPROV ED
LICENSURE STATUS .
(3) THE LIMITATIONS UNDER THIS SUBSECTION DO N OT APPLY TO
TRANSFERS AS A RESUL T OF THE DISABILITY, INCAPACITY, OR DEATH OF THE
OWNER OF A CANNABIS LICENSE, THE BANKRUPTCY OR RECEIVERSHIP IN
ACCORDANCE WITH A LE NDING AGREEMENT OF A CANNABIS LICENS EE, OR COURT
ORDER.
(4) THE LIMITATIONS UNDER THIS SUBSECTION DO NOT APPLY TO A
TRANSFER OF OWNERSHI P THAT IS THE SUBJEC T OF A LEGALLY BINDI NG
SETTLEMENT AGREEMENT RESULTING FROM LITIG ATION COMMENCED ON O R
BEFORE JANUARY 1, 2023.
36–504.
(A) (1) IN THIS SECTION, “OWNER” INCLUDES ANY TYPE OF OWNER OR
BENEFICIARY OF A BUSINESS ENTITY , INCLUDING A PRINCIPA L OFFICER, A
DIRECTOR, A PRINCIPAL EMPLOYEE , A PARTNER, AN INVESTOR, A STOCKHOLDER ,
OR A BENEFICIAL OWNE R OF THE BUSINESS EN TITY AND, NOTWITHSTANDING ANY
OTHER PROVISION OF T HIS SUBTITLE, A PERSON HAVING ANY OWNERSHIP
INTEREST REGARDLESS OF THE PERCENTAGE OF OWNERSHIP INTEREST .
(2) “OWNER” DOES NOT INCLUDE A S TOCKHOLDER .
(B) THE PROVISIONS IN THI S SECTION ARE IN ADD ITION TO THE CONFLIC T
OF INTEREST PROVISIO NS IN TITLE 5 OF THE GENERAL PROVISIONS ARTICLE.
Ch. 254 2023 LAWS OF MARYLAND
– 74 –
(C) EXCEPT AS PROVIDED IN SUBSECTION (C) (D) OF THIS SECTION , A
CONSTITUTIONAL OFFIC ER OR A SECRETARY OF A PRINCIPAL DEPARTME NT OF THE
EXECUTIVE BRANCH OF THE STATE GOVERNMENT MAY NOT:
(1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE.
(C) (D) A SUBJECT TO THE PROVIS IONS OF TITLE 5 OF THE GENERAL
PROVISIONS ARTICLE, A CONSTITUTIONAL OFFIC ER OR A SECRETARY OF A
PRINCIPAL DEPARTMENT OF THE EXECUTIVE BRANCH OF THE STATE GOVERNMENT
MAY REMAIN AN OWNER OR AN EMPLOYEE OF A BUSINESS ENTITY THAT HOLDS A
LICENSE UNDER THIS TIT LE IF THE CONSTITUTI ONAL OFFICER OR SECR ETARY WAS
AN OWNER OR EMPLOYEE OF THE BUSINESS ENTI TY BEFORE THE CONSTI TUTIONAL
OFFICER’S ELECTION OR APPOIN TMENT OR THE SECRETA RY’S APPOINTMENT .
(D) (E) A MEMBER OF THE GENERAL ASSEMBLY MAY NOT :
(1) BE AN OWNER OR AN EMPLOYEE OF A BUSINESS ENTITY THAT
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE.
(E) (F) A FORMER MEMBER OF THE GENERAL ASSEMBLY, FOR THE
1–YEAR PERIOD IMMEDIAT ELY AFTER THE MEMBER LEAVES OFFICE, MAY NOT:
(1) BE AN OWNER OR AN EM PLOYEE OF A BUSINESS ENTITY THAT
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE; OR
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A BUS INESS ENTITY THAT
HOLDS A LICENSE OR R EGISTRATION UNDER TH IS TITLE.
(F) (G) AN EMPLOYEE OF THE DIVISION ADMINISTRATION MAY NOT:
(1) HAVE A DIRECT OR IND IRECT FINANCIAL , OWNERSHIP, OR
MANAGEMENT INTEREST , INCLUDING OWNERSHIP OF ANY STOCKS , BONDS, OR
OTHER SIMILAR FINANCIAL IN STRUMENTS , IN ANY CANNABIS LICE NSEE;
(2) HAVE AN OFFICIAL REL ATIONSHIP WITH A PER SON WHO HOLDS A
LICENSE OR REGISTRAT ION UNDER THIS TITLE ; WES MOORE, Governor Ch. 254
– 75 –
(3) BE AN ELECTED OFFICI AL OF STATE OR LOCAL GOVERN MENT;
(4) RECEIVE OR SHARE IN , DIRECTLY OR INDIRECTLY , THE RECEIPTS
OR PROCEEDS OF A CAN NABIS LICENSEE; OR
(5) HAVE A BENEFICIAL IN TEREST IN A CONTRACT FOR THE
MANUFACTURE OR SALE OF CANNABIS OR THE P ROVISION OF INDEPEND ENT
CONSULTING SERVICES IN CONNECTION WITH A CANNABIS LICENSE .
36–505.
(A) IN THIS SECTION , “CENTRAL REPOSITORY” MEANS THE CRIMINAL
JUSTICE INFORMATION SYSTEM CENTRAL REPOSITORY IN THE DEPARTMENT OF
PUBLIC SAFETY AND CORRECTIONAL SERVICES.
(B) AS PART OF AN APPLICA TION TO THE CENTRAL REPOSITORY FOR A
STATE AND NATI ONAL CRIMINAL HISTOR Y RECORDS CHECK , AN APPLICANT SHALL
SUBMIT TO THE CENTRAL REPOSITORY:
(1) TWO COMPLETE SETS OF LEGIBLE FINGERPRINTS TAKEN ON
FORMS APPROVED BY TH E DIRECTOR OF THE CENTRAL REPOSITORY AND THE
DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION;
(2) THE FEE AUTHORIZED U NDER § 10–221(B)(7) OF THE CRIMINAL
PROCEDURE ARTICLE FOR ACCESS TO STATE CRIMINAL HISTOR Y RECORDS; AND
(3) THE PROCESSING FEE R EQUIRED BY THE FEDERAL BUREAU OF
INVESTIGATION FOR A N ATIONAL CRIMINAL HIS TORY RECORDS CH ECK.
(C) IN ACCORDANCE WITH §§ 10–201 THROUGH 10–228 OF THE CRIMINAL
PROCEDURE ARTICLE, THE CENTRAL REPOSITORY SHALL FORW ARD TO THE
DIVISION ADMINISTRATION AND TO THE APPLICANT THE APPLICANT ’S CRIMINAL
HISTORY RECORD INFOR MATION.
(D) IF AN APPLICANT HAS MADE TWO OR MORE UNSUCCESSFUL ATTEMPT S
AT SECURING LEGIBLE FINGERPRINTS , THE DIVISION ADMINISTRATION MAY
ACCEPT AN ALTERNATE METHOD OF A CRIMINAL HISTORY RECORDS CHEC K AS
PERMITTED BY THE DIRECTOR OF THE CENTRAL REPOSITORY AND THE DIRECTOR
OF THE FEDERAL BUREAU OF INVESTIGATION .
(E) INFORMATION OBTAINED FROM THE CENTRAL REPOSITORY UNDER
THIS SECTION SHALL B E:
Ch. 254 2023 LAWS OF MARYLAND
– 76 –
(1) CONFIDENTIAL AND MAY NOT BE REDISSEMINATE D; AND
(2) USED ONLY FOR THE PU RPOSE OF REGISTRATIO N UNDER THIS
TITLE.
(F) THE SUBJECT OF A CRIMINAL HISTORY R ECORDS CHECK UNDER T HIS
SECTION MAY CONTEST THE CRIMINAL HISTORY RECORD INFORMATION
DISSEMINATED BY THE CENTRAL REPOSITORY, AS PROVIDED IN § 10–223 OF THE
CRIMINAL PROCEDURE ARTICLE.
SUBTITLE 6. MEDICAL CANNABIS COMPASSIONATE USE FUND AND PROGRAM.
36–601.
(A) IN THIS SECTION , “FUND” MEANS THE MEDICAL CANNABIS
COMPASSIONATE USE FUND.
(B) THERE IS A MEDICAL CANNABIS COMPASSIONATE USE FUND.
(B) (C) (1) THE DIVISION ADMINISTRATION SHALL:
(I) ADMINISTER THE COMPASSIONATE USE FUND; AND
(II) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION ,
ESTABLISH FEES IN AN AMOUNT NECESSARY TO PROVIDE REVENUES FOR THE
PURPOSES OF THE COMPASSIONATE USE FUND.
(2) THE DIVISION ADMINISTRATION MAY NOT IMPOSE THE F EES
ESTABLISHED UNDER PA RAGRAPH (1)(II) OF THIS SUBSECTION O N A LICENSED
MEDICAL CANNABIS GRO WER, PROCESSOR, OR DISPENSARY DURING THE 2–YEAR
PERIOD IMMEDIATELY F OLLOWING THE ISSUANC E OF A LICENSE BEFORE THE
GROWER, PROCESSOR, OR DISPENSARY IS AN OPERATIONAL CANNABIS LICENSEE
UNDER THIS TITLE.
(C) (D) THE PURPOSE OF THE COMPASSIONATE USE FUND IS TO
PROVIDE ACCESS TO CA NNABIS FOR INDIVIDUA LS ENROLLED IN THE MARYLAND
MEDICAL ASSISTANCE PROGRAM OR IN THE VETERANS AFFAIRS MARYLAND
HEALTH CARE SYSTEM, INCLUDING ACCESS TO , AT A REDUCED COST :
(1) AN ASSESSMENT OF THE PATIENT’S MEDICAL HISTORY AN D
CURRENT MEDICAL COND ITION; AND
(2) MEDICAL CANNABIS FRO M A LICENSED DISPENS ARY.
WES MOORE, Governor Ch. 254
– 77 –
(D) (E) (1) THE COMPASSIONATE USE FUND IS A SPECIAL ,
NONLAPSING FUND THAT IS NOT SUBJECT TO § 7–302 OF THE STATE FINANCE AND
PROCUREMENT ARTICLE.
(2) THE STATE TREASURER SHALL HOLD THE COMPASSIONATE USE
FUND SEPARATELY , AND THE COMPTROLLER SHALL ACC OUNT FOR THE
COMPASSIONATE USE FUND.
(3) THE COMPASSIONATE USE FUND SHALL BE INVESTE D AND
REINVESTED IN THE SA ME MANNER AS OTHER STATE FUNDS, AND ANY INVESTMENT
EARNINGS SHALL BE RE TAINED TO THE CREDIT OF THE COMPASSIONATE USE
FUND.
(F) THE FUND CONSISTS OF :
(1) FEES ESTABLISHED UND ER SUBSECTION (C)(1)(II) OF THIS
SECTION;
(2) FINES ASSESSED BY TH E DIVISION ADMINISTRATION UNDER THIS
TITLE;
(3) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND;
(4) INTEREST EARNINGS ; AND
(5) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR
THE BENEFIT OF THE FUND.
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED.
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO
THE FUND.
(4) (H) THE COMPASSIONATE USE FUND SHALL BE SUBJECT TO AN
AUDIT BY THE OFFICE OF LEGISLATIVE AUDITS AS PROVIDED FO R IN § 2–1220 OF
THE STATE GOVERNMENT ARTICLE.
(5) (I) THE COMPTROLLER SHALL PAY OUT MONEY FROM THE
COMPASSIONATE USE FUND AS DIRECTED BY T HE DIVISION ADMINISTRATION .
(E) (J) NO PART OF THE COMPASSIONATE USE FUND MAY REVERT OR BE
CREDITED TO:
Ch. 254 2023 LAWS OF MARYLAND
– 78 –
(1) THE GENERAL FUND OF THE STATE; OR
(2) ANY OTHER SPECIAL FU ND OF THE STATE.
(F) (K) EXPENDITURES FROM THE COMPASSIONATE USE FUND MAY BE
MADE ONLY IN ACCORDA NCE WITH TH E STATE BUDGET .
(G) (L) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS TO
CARRY OUT THIS SECTI ON.
SUBTITLE 7. CANNABIS RESEARCH AND DEVELOPMENT .
36–701.
(A) (1) AN INSTITUTION OF HIG HER EDUCATION , A RELATED MEDICAL
FACILITY, OR AN AFFILIATED BIO MEDICAL RESEARCH FIR M MAY REGISTER WITH
THE DIVISION ADMINISTRATION TO PURCHASE CANNABIS FOR THE PURPOSE OF
CONDUCTING A BONA FIDE RESEARCH PROJEC T RELATING TO THE US ES,
PROPERTIES, OR COMPOSITION OF CA NNABIS.
(2) A REGISTRATION FILED U NDER PARAGRAPH (1) OF THIS
SUBSECTION SHALL INC LUDE:
(I) THE NAME OF THE PRIM ARY RESEARCHER ;
(II) THE EXPECTED DURATIO N OF THE RESEARCH PR OJECT;
AND
(III) THE PRIMARY OBJECTIV ES OF THE RESEARCH PROJ ECT.
(3) A REGISTRATION FILED U NDER PARAGRAPH (1) OF THIS
SUBSECTION SHALL REM AIN VALID UNTIL THER E IS A CHANGE IN THE RESEARCH
PROJECT OR A WITHDRA WAL OF THE REGISTRAT ION.
(B) AN ACADEMIC RESEARCH REPRESENTATIVE MAY P URCHASE CANNABIS
FROM A LICENSED DISP ENSARY OR A SUPPLIER OF CAN NABIS THAT IS LICENS ED BY
ANY FEDERAL AGENCY T O SUPPLY CANNABIS TO RESEARCHERS .
(C) AN ACADEMIC RESEARCH REPRESENTATIVE MAY N OT BE PENALIZED OR
ARRESTED UNDER STATE LAW FOR ACQUIRI NG, POSSESSING, OR DISPENSING
CANNABIS, PRODUCTS CONTAINING CANNABIS, RELATED SUPPLIES , OR
EDUCATIONAL MATERIAL S FOR USE IN A BONA FIDE RESEARCH PROJEC T RELATING
TO THE USES, PROPERTIES, OR COMPOSITION OF CA NNABIS.
WES MOORE, Governor Ch. 254
– 79 –
(D) THE DIVISION ADMINISTRATION MAY ADOPT REGULATION S TO
IMPLEMENT THIS SECTI ON.
36–702.
(A) THE DIVISION ADMINISTRATION MAY REGISTER AN ENTI TY TO GROW,
PROCESS, TEST, AND TRANSFER CANNABI S FOR THE PURPOSES O F RESEARCH AND
DEVELOPMENT AS PROVI DED IN SUBSECTION (B) OF THIS SECTION.
(B) A REGISTRATION ISSUED UNDER SUBSECTION (A) OF THIS SECTION
AUTHORIZES THE REGIS TRANT ONLY TO:
(1) TEST CHEMICAL POTENC Y AND COMPOSITION LE VELS;
(2) CONDUCT CLINICAL INV ESTIGATIONS OF CANNA BIS–DERIVED
MEDICINAL PRODUCTS ;
(3) CONDUCT RESEARCH ON THE EFFICACY AND SAF ETY OF
ADMINISTERING CANNAB IS AS PART OF MEDICA L TREATMENT ;
(4) CONDUCT GENOMIC , HORTICULTURAL , OR AGRICULTURAL
RESEARCH; AND
(5) CONDUCT RESEARCH ON CANNABIS–AFFILIATED PRODUCTS OR
SYSTEMS.
(C) TO OBTAIN A RESEARCH AND DEVELOPMENT REGI STRATION, AN
APPLICANT SHALL SUBM IT TO THE DIVISION ADMINISTRATION :
(1) AN APPLICATION FEE IN AN AM OUNT TO BE DETERMINE D BY THE
DIVISION ADMINISTRATION ; AND
(2) AN APPLICATION DEVEL OPED BY THE DIVISION
ADMINISTRATION .
(D) AN APPLICANT FOR A RE SEARCH AND DEVELOPME NT REGISTRATION
MUST MEET THE REGIST RATION STANDARDS AND REQUIREMENTS ESTABLI SHED BY
THE DIVISION ADMINISTRATION .
(E) (1) A RESEARCH AND DEVELOP MENT REGISTRATION IS VALID FOR AN
INITIAL TERM OF 2 YEARS.
(2) A RESEARCH AND DEVELOPM ENT REGISTRATION IS VALID FOR 2
YEARS ON RENEWAL . Ch. 254 2023 LAWS OF MARYLAND
– 80 –
(F) A RESEARCH AND DEVELOP MENT REGISTRANT MAY TRANSFER, BY SALE
OR DONATION , CANNABIS GROWN WITHI N ITS OPERATION ONLY TO OTHER
RESEARCH AND DEVELOP MENT REGISTRANTS .
(G) A RESEARCH AND DEVELOPMENT REGI STRANT MAY CONTRACT TO
PERFORM RESEARCH IN CONJUNCTION WITH A P UBLIC HIGHER EDUCATI ON
RESEARCH INSTITUTION OR ANOTHER RESEARCH AND DEVELOPMENT REGI STRANT.
SUBTITLE 8. REPORTS.
36–801.
(A) ON OR BEFORE JUNE 30 EACH YEAR, EACH ENTITY LICENSED OR
REGISTERED UNDER THI S TITLE CANNABIS LICENSEE AN D CANNABIS REGISTRAN T
SHALL REPORT TO THE DIVISION ON:
(A) ON OR BEFORE AUGUST 1 EACH YEAR, EACH CANNABIS LICENS EE AND
CANNABIS REGISTRANT SHALL REPORT TO THE ADMINISTRATION INFORM ATION
DETERMINED BY THE ADMINISTRATION TO BE NECESSARY TO CONTINU E TO ASSESS
THE NEED FOR REMEDIA L MEASURES IN THE CA NNABIS INDUSTRY AND MARKET,
INCLUDING:
(1) THE NUMBER OF MINORI TY AND WOMEN OWNERS OF THE
CANNABIS LICENSEE OR CANNABIS REGISTRANT ;
(2) THE OWNERSHIP INTEREST O F ANY MINORITY AND W OMEN
OWNERS OF THE CANNAB IS LICENSEE OR CANNA BIS REGISTRANT ; AND
(3) THE NUMBER OF MINORI TY AND WOMEN EMPLOYE ES OF THE
CANNABIS LICENSEE OR CANNABIS REGISTRANT ;
(4) A LIST OF THE CANNAB IS LICENSEE’S OR CANNABIS REGISTRANT ’S
EXPENDITURES FOR THE PRIOR STATE FISCAL YEAR ; AND
(5) FOR EACH EXPENDITURE :
(I) A DESCRIPTION OF THE WORK PERFORMED ;
(II) THE DOLLAR VALUE OF THE EXPENDITURE ;
(III) WHETHER THE WORK WAS PERFORMED BY THE CAN NABIS
LICENSEE OR CANNABIS REGIST RANT OR A CONTRACTOR OR SUBCONTRACTOR ; AND WES MOORE, Governor Ch. 254
– 81 –
(IV) IF THE WORK WAS PERF ORMED BY A CONTRACTO R OR
SUBCONTRACTOR , THE NAME OF THE ENTI TY THAT PERFORMED TH E WORK.
(B) ALL DATA PROVIDED BY A CANNABIS LICENSEE OR CANNABIS
REGISTRANT UNDER SUBSECTION (A)(4) AND (5) OF THIS SECTION:
(1) SHALL CONSTITUTE CON FIDENTIAL COMMERCIAL AND FINANCIAL
INFORMATION AND BE T REATED AS CONFIDENTI AL BY THE ADMINISTRATION AND
THE STATE; AND
(2) MAY BE USED ONLY FOR THE PURPOSES AUTHORI ZED UNDER THIS
SECTION AND MAY ONLY BE DISCLOSED TO THE PUB LIC IN AN ANONYMIZED OR
AGGREGATED FORMAT .
(C) ON OR BEFORE AUGUST 15 EACH YEAR, THE ADMINISTRATION SHALL
PROVIDE THE DATA COL LECTED UNDER SUBSECT ION (A) OF THIS SECTION TO T HE
CERTIFICATION AGENCY DESIGNATED BY TH E BOARD OF PUBLIC WORKS UNDER §
14–303(B) OF THE STATE FINANCE AND PROCUREMENT ARTICLE.
(B) (D) ON OR BEFORE JANUARY 1 EACH YEAR , THE DIVISION
ADMINISTRATION SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE INFORMATION
REPORTED UNDER SUBSE CTION (A) (A)(1) THROUGH (3) OF THIS SECTION.
36–802.
ON OR BEFORE JANUARY 1 EACH ODD–NUMBERED YEAR, THE DIVISION
ADMINISTRATION SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON:
(1) THE AMOUNT OF CANNAB IS CULTIVATED , PROCESSED, AND
DISPENSED BY STANDAR D AND MICRO LICENSEE S; AND
(2) WHETHER THE SUPPLY O F CANNABIS IS ADEQUATE TO MEET THE
DEMAND FOR CANNABIS AND CANNABIS PRODUCT S.
36–803.
THE DIVISION ADMINISTRATION SHALL PUBLISH THE FO LLOWING DATA ,
ORGANIZED BY MONTH , ON A ROLLING BASIS A ND ON A PUBLICLY ACC ESSIBLE PART
OF THE COMMISSION’S ADMINISTRATION ’S WEBSITE:
Ch. 254 2023 LAWS OF MARYLAND
– 82 –
(1) THE NUMBER OF PATIEN TS, CAREGIVERS, AND PROVIDERS
CERTIFIED UNDER THIS TITLE;
(2) THE WHOLESALE AND RE TAIL SALES OF MEDICA L AND ADULT–USE
CANNABIS, MEASURED BY REVENUE AND VOLUME ; AND
(3) THE MEDIAN CONSUMER PRICE FOR CANNABIS AND CANNABIS
PRODUCTS.
SUBTITLE 9. ADVERTISING.
36–901.
(A) IN THIS SUBTITLE , “ADVERTISEMENT ” MEANS THE PUBLICATIO N,
DISSEMINATION , OR CIRCULATION OF AN Y AUDITORY, VISUAL, DIGITAL, ORAL, OR
WRITTEN MATTER WHICH IS DIRECTLY OR INDIR ECTLY CALCULATED TO INDUCE THE
SALE OF CANNABIS OR ANY CANNABIS–RELATED PRODUCT OR S ERVICE.
(B) “ADVERTISEMENT ” DOES NOT INCLUDE PAC KAGING OR LABELING .
36–902.
(A) ADVERTISEMENTS AN ADVERTISEMENT FOR MEDICAL CANNABIS AND
MEDICAL CANNABIS PRODUCTS OR MEDICAL CANNABIS –RELATED SERVICES THA T
MAKE MAKES THERAPEUTIC OR MEDIC AL CLAIMS SHALL :
(1) BE SUPPORTED BY SUBSTANTIAL CLINICAL EVIDENCE OR
SUBSTANTIAL CLINICAL DATA COMPETENT AND RELIAB LE SCIENTIFIC EVIDEN CE;
AND
(2) INCLUDE INFORMATION ON THE MOST SIGNIFICANT SERIOUS AND
MOST COMMON SIDE EFFECTS OR RISK S ASSOCIATED WITH TH E USE OF CANNABIS .
(B) ADVERTISEMENTS AN ADVERTISEMENT FOR MEDICAL CANNABIS OR
MEDICAL CANNABIS PRO DUCTS SHALL INCLUDE A STATEMENT THAT THE PRODUCT
IS FOR USE ONLY BY A QUALIFYING PATIENT .
36–902. 36–903.
(A) (1) THIS SUBSECTION DOES NOT APPLY TO AN ADVE RTISEMENT
PLACED ON PROPERTY O WNED OR LEASED BY A DISPENSARY, GROWER, OR
PROCESSOR.
WES MOORE, Governor Ch. 254
– 83 –
(2) AN ADVERTISEMENT FOR A CANNABIS LICENSEE , CANNABIS
PRODUCT, OR CANNABIS–RELATED SERVICE MAY NOT:
(1) MAKE A STATEMENT THA T IS FALSE OR MISLEA DING IN A
MATERIAL WAY OR IS O THERWISE A VIOLATION OF TITLE 13, SUBTITLE 3 OF THE
COMMERCIAL LAW ARTICLE;
(I) VIOLATE TITLE 13, SUBTITLE 3 OF THE COMMERCIAL LAW
ARTICLE;
(II) DIRECTLY OR INDIRECT LY TARGET INDIVIDUAL S UNDER
THE AGE OF 21 YEARS;
(2) (III) CONTAIN A DESIGN , AN ILLUSTRATION , A PICTURE, OR A
REPRESENTATION THAT :
(I) 1. TARGETS OR IS ATTRAC TIVE TO MINORS , INCLUDING
A CARTOON CHARACTER , A MASCOT, OR ANY OTHER DEPICTI ON THAT IS COMMONLY
USED TO MARKET PRODU CTS TO MINORS;
(II) 2. DISPLAYS THE USE OF CANNABIS, INCLUDING THE
CONSUMPTION , SMOKING, OR VAPING OF CANNABI S;
(III) 3. ENCOURAGES OR PROMOT ES CANNABIS FOR USE AS
AN INTOXICANT; OR
(I) 4. IS OBSCENE;
(3) (IV) ENGAGE IN ADVERTISIN G BY MEANS OF TELEVI SION, RADIO,
INTERNET, MOBILE APPLICATION , SOCIAL MEDIA , OR OTHER ELECTRONIC
COMMUNICATION , OR PRINT PUBLICATION , UNLESS AT LEAST 85% OF THE
AUDIENCE IS REASONAB LY EXPECTED TO BE AT LEAST 21 YEARS OLD AS
DETERMINED BY RELIAB LE AND CURRENT AUDIE NCE COMPOSITION DATA ; OR
(4) (V) ENGAGE IN ADVERTISIN G BY MEANS OF PLACIN G AN
ADVERTISEMENT ON THE SIDE OF A BUILDING O R ANOTHER PUBLICLY V ISIBLE
LOCATION OF ANY FORM , INCLUDING A SIGN , A POSTER, A PLACARD, A DEVICE, A
GRAPHIC DISPLAY , AN OUTDOOR BILLBOARD, OR A FREESTANDING SIGNBOARD.
(B) (1) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH ,
EACH CANNABIS–RELATED WEBSITE OWNED, MANAGED, OR OPERATED BY A
CANNABIS LICENSEE SHALL EMPLOY A NEUTR AL AGE–SCREENING MECHANISM
THAT VERIFIES THAT T HE USER IS AT LEAST 21 YEARS OLD, INCLUDING BY USING A N
AGE–GATE, AGE–SCREEN, OR AGE VERIFICATION MECHANISM BEFORE THE USER Ch. 254 2023 LAWS OF MARYLAND
– 84 –
MAY ACCESS OR VIEW A NY CONTENT AND BEFOR E THE WEBSITE MAY CO LLECT THE
USER’S ADDRESS, E–MAIL ADDRESS, PHONE NUMBER , OR CONTACT INFORMATI ON TO
DISSEMINATE ADVERTIS EMENTS.
(II) IF A WEBSITE IS APPRO PRIATE FOR A QUALIFY ING PATIENT
WHO IS UNDER THE AGE OF 21 YEARS, THE WEBSITE SHALL PR OVIDE AN
ALTERNATIVE SCREENIN G MECHANISM FOR THE QUALIFYING PATIENT .
(2) AN ADVERTISEMENT PLAC ED ON SOCIAL MEDIA O R A MOBILE
APPLICATION SHALL IN CLUDE A NOTIFICATION THAT AN INDIVIDUAL M UST BE AT
LEAST 21 YEARS OLD TO VIEW TH E CONTENT.
(3) THE PROVISIONS OF THI S SUBTITLE APPLICABL E TO CANNABIS
LICENSEES MAY NOT BE AVOIDED BY HIRING OR CONTRACTING WITH A
THIRD–PARTY, OR OUTSO URCING ADVERTISEMENT S THAT DO NOT COMPLY WITH
THIS SUBTITLE.
(4) A CANNABIS LICENSEE MA Y NOT ALLOW THE USE OF THE
LICENSEE’S TRADEMARKS , BRANDS, NAMES, LOCATIONS, OR OTHER
DISTINGUISHING CHARA CTERISTICS FOR THIRD –PARTY USE FOR ADVERT ISEMENTS
THAT DO NOT COMPLY WITH THIS SUB TITLE.
(C) THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS TO
ESTABLISH:
(1) PROCEDURES FOR THE E NFORCEMENT OF THIS S ECTION; AND
(2) A PROCESS FOR AN IND IVIDUAL TO VOLUNTARI LY SUBMIT AN
ADVERTISEMENT TO THE DIVISION FOR AN ADVISORY OPINION ON WHETHER THE
ADVERTISEMENT COMPLI ES WITH THE RESTRICT IONS ON ADVERTISEMEN TS FOR
CANNABIS, CANNABIS PRODUCTS , EDIBLE CANNABIS PROD UCTS, AND
CANNABIS–RELATED SERVICES .
SUBTITLE 10. RESPONSIBLE VENDOR TRAINING PROGRAM.
36–1001.
(A) IF A PERSON WOULD LIK E TO TO OFFER A RESPONSIBLE MEDICAL OR
ADULT–USE CANNABIS VENDOR , SERVER, AND SELLER TRAINING PROGRAM, THE A
PERSON MUST SHALL SUBMIT AN APPLICATIO N TO THE DIVISION ADMINISTRATION .
WES MOORE, Governor Ch. 254
– 85 –
(B) THE DIVISION ADMINISTRATION SHALL APPROVE THE AP PLICATION IF
THE PROPOSED TRAININ G PROGRAM MEETS THE MINIMUM EDUCATIONAL
STANDARDS ESTABLISHE D UNDER SUBSECTION (C) OF THIS SECTION.
(C) AT A MINIMUM, A TRAINING PROGRAM M UST:
(1) BE TAUGHT IN A CLASS ROOM OR VIRTUAL SETT ING FOR AT LEAST
A 2–HOUR PERIOD ;
(2) ESTABLISH PROGRAM ST ANDARDS, INCLUDING CERTIFICAT ION
AND RECERTIFICATION REQUIREMENTS , RECORD KEEPING , TESTING AND
ASSESSMENT PROTOCOLS , AND EFFECTIVENESS EV ALUATIONS; AND
(3) PROVIDE A CORE CURRI CULUM OF RELEVANT ST ATUTORY AND
REGULATORY PROVISION S, WHICH SHALL INCLUDE :
(I) INFORMATION ON REQUI RED LICENSES , AGE
REQUIREMENTS , PATIENT REGISTRY CAR DS ISSUED BY THE DIVISION
ADMINISTRATION , MAINTENANCE OF RECOR DS, PRIVACY ISSUES, AND UNLAWFUL
ACTS;
(II) ADMINISTRATIVE AND CRIMINAL LIABILI TY AND LICENSE
AND COURT SANCTIONS ;
(III) STATUTORY AND REGULA TORY REQUIREMENTS FO R
EMPLOYEES AND OWNERS ;
(IV) STATUTORY AND REGULA TORY REQUIREMENTS RE LATED
TO CANNABIS SALE , TRANSFER, AND DELIVERY ;
(V) ACCEPTABLE FORMS OF IDENTIFICATION , INCLUDING
PATIENT AND CAREGIVE R IDENTIFICATION CAR DS;
(VI) STATE AND LOCAL LICEN SING AND ENFORCEMENT ; AND
(VII) INFORMATION ON SERVI NG SIZE, THC AND CANNABINOID
POTENCY, AND IMPAIRMENT .
36–1002.
THE DIVISION ADMINISTRATION SHALL ADOPT REGULATI ONS ESTABLISHING
THE RESPONSIBLE VEND OR TRAINING PROGRAM AND THE MINIMUM STAN DARDS
FOR THE PROGRAM .
Ch. 254 2023 LAWS OF MARYLAND
– 86 –
36–1003.
A PROVIDER OF AN APPRO VED TRAINING PROGRAM SHALL:
(1) MAINTAIN ITS TRAININ G RECORDS AT ITS PRI NCIPAL PLACE OF
BUSINESS FOR AT LEAST 4 YEARS; AND
(2) MAKE THE RECORDS AVA ILABLE FOR INSPECTIO N BY THE
DIVISION ADMINISTRATION .
SUBTITLE 11. PROHIBITED ACTS.
36–1101.
(A) A CANNABIS LICENSEE MA Y NOT SELL , TRANSFER, OR DELIVER
CANNABIS OR CANNABIS PRODUCTS UNLESS THE LICENSEE VERIFIES BY MEANS OF
A VALID DRIVER ’S LICENSE OR OTHER G OVERNMENT –ISSUED PHOTO
IDENTIFICATION CONTA INING THE BEARER ’S DATE OF BIRTH THAT :
(1) FOR ADULT–USE CANNABIS , THE CONSUMER IS AT L EAST 21
YEARS OLD; OR
(2) FOR MEDICAL CANNABIS , THE PATIENT OR CAREGIVER IS :
(I) REGISTERED WITH THE DIVISION ADMINISTRATION ; AND
(II) AT LEAST 18 YEARS OLD.
(B) (1) (I) A EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS
PARAGRAPH , A LICENSEE THAT SELLS , TRANSFERS, OR DELIVERS CANNABIS OR
CANNABIS P RODUCTS IN VIOLATION OF SUBSECTION (A) OF THIS SECTION IS
SUBJECT TO A CIVIL P ENALTY OF:
(I) 1. $500 FOR A FIRST VIOLATIO N;
(II) 2. $1,000 FOR A SECOND VIOLATI ON OCCURRING
WITHIN 24 MONTHS AFTER THE FIR ST VIOLATION; AND
(III) 3. $5,000 FOR EACH SUBSEQUENT VIOL ATION
OCCURRING WITHIN 24 MONTHS AFTER THE IMM EDIATELY PRECEDING V IOLATION.
(II) A VIOLATION OF SUBSECT ION (A) OF THIS SECTION THAT
OCCURS MORE THAN 24 MONTHS AFTER THE IMM EDIATELY PRECEDING V IOLATION
SHALL BE TREATED AS A FIRST VIOLATION. WES MOORE, Governor Ch. 254
– 87 –
(2) THE DIVISION ADMINISTRATION MAY DENY A CANNABIS LICENSE
TO AN APPLICANT , REPRIMAND A CANNABIS LICENSEE, OR SUSPEND OR REVOKE A
CANNABIS LICENSE IF THE APPLICANT OR LIC ENSEE VIOLATES SUBSE CTION (A) OF
THIS SECTION TWO OR MORE TIMES IN A 24–MONTH PERIOD .
(3) IN A HEARING FOR AN A LLEGED VIOLATION OF THIS SECTION, IT
IS A DEFENSE THAT AN AGENT OF THE DEFENDA NT EXAMINED THE CONS UMER’S,
PATIENT’S, OR CAREGIVER ’S DRIVER’S LICENSE OR OTHER V ALID IDENTIFICATION
ISSUED BY A GOVERNME NTAL UNIT TH AT POSITIVELY IDENTI FIED THE CONSUMER ,
PATIENT, OR CAREGIVER AS MEET ING THE MINIMUM AGE SPECIFIED IN SUBSECT ION
(A) OF THIS SECTION.
(C) (1) A CANNABIS LICENSEE MA Y NOT:
(I) SELL, TRANSFER, OR DELIVER CANNABIS TO AN INDIVIDUAL
WHO IS VISIBLY INTOX ICATED; OR
(II) OFFER CANNABIS OR CA NNABIS PRODUCTS AS A PRIZE,
PREMIUM, OR CONSIDERATION FOR A LOTTERY, CONTEST, GAME OF CHANCE , GAME
OF SKILL, OR COMPETITION OF AN Y KIND; OR
(III) CONDUCT DIRECT –TO–CONSUMER INTERNET SALES OF
ADULT–USE CANNABIS ON OR BEFORE JULY 1, 2025.
(2) A CANNABIS LICENSEE TH AT VIOLATES PARAGRAP H (1) OF THIS
SUBSECTION IS SUBJEC T TO A FINE NOT EXCE EDING $1,000, SUSPENSION OR
REVOCATION OF A LICE NSE, OR BOTH.
(D) (1) A DISPENSARY MAY NOT :
(I) PACKAGE OR REPACKAGE CANNABIS OR CANNABIS
PRODUCTS;
(II) TRANSFORM CANNABIS O R CANNABIS PRODUCTS INTO
ANOTHER PRODUCT OR A N EXTRACT; OR
(III) WRAP, ROLL, OR OTHERWISE ENCASE CANNABIS FOR THE
PURPOSE OF SMOKING T HE CANNABIS.
(2) A DISPENSARY THAT VIOL ATES PARAGRAPH (1) OF THIS
SUBSECTION IS SUBJEC T TO A FINE NOT EXCE EDING $1,000, SUSPENSION OR
REVOCATION OF A LICE NSE, OR BOTH.
Ch. 254 2023 LAWS OF MARYLAND
– 88 –
36–1102.
(A) THIS TITLE MAY NOT BE CONSTRUED TO AUTHORI ZE AN INDIVIDUAL TO :
(1) OPERATE, NAVIGATE, OR BE IN ACTUAL PHYS ICAL CONTROL OF A
MOTOR VEHICLE , AIRCRAFT, OR BOAT WHILE UNDER THE INFLUENCE OF CAN NABIS;
(2) USE CANNABIS IN A PU BLIC PLACE;
(3) USE CANNABIS IN A MO TOR VEHICLE;
(4) EXCEPT AS PROVIDED I N SUBSECTION (B) OF THIS SECTION ,
SMOKE CANNABIS ON A PRIVATE PROPERTY THA T:
(I) 1. IS RENTED FROM A LAN DLORD; AND
2. IS SUBJECT TO A POLI CY THAT PROHIBITS TH E
SMOKING OF CANNABIS ON THE PROPERTY ; OR
(II) IS SUBJECT TO A POLI CY THAT PROHIBITS TH E SMOKING OF
CANNABIS ON THE PROP ERTY OF AN ATTACHED DWELLING ADOPTED BY ONE OF THE
FOLLOWING ENTITIES :
1. THE BOARD OF DIRECTO RS OF THE COUNCIL OF UNIT
OWNERS OF A CONDOMIN IUM REGIME; OR
2. THE GOVERNING BODY O F A HOMEOWNERS
ASSOCIATION; OR
(5) POSSESS CANNABIS , INCLUDING CANNABIS P RODUCTS, IN A
LOCAL DETENTION FACILITY , COUNTY JAIL, STATE PRISON, REFORMATORY , OR
OTHER CORRECTIONAL F ACILITY, INCLUDING A FACILITY FOR THE DETENTION OF
JUVENILE OFFENDERS .
(B) THE PROVISIONS OF SUB SECTION (A)(4) OF THIS SECTION DO N OT
APPLY TO VAPORIZING CANNABIS.
36–1103.
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “HEMP” HAS THE MEANING STAT ED IN § 14–401 OF THE
AGRICULTURE ARTICLE. WES MOORE, Governor Ch. 254
– 89 –
(3) “TETRAHYDROCANNABINOL ” MEANS:
(I) ANY TETRAHYDROCANNAB INOL, INCLUDING
DELTA–8–TETRAHYDROCANNABINOL , DELTA–9–TETRAHYDROCANNABINOL , AND
DELTA–10–TETRAHYDROCANNABINOL , REGARDLESS OF HOW DE RIVED;
(II) ANY OTHER CANNABINOI D, EXCEPT CANNABIDIOL T HAT THE
ADMINISTRATION DETERM INES TO CAUSE INTOXI CATION; AND
(III) ANY OTHER C HEMICALLY SIMILAR CO MPOUND, SUBSTANCE,
DERIVATIVE, OR ISOMER OF TETRAHY DROCANNABINOL , AS IDENTIFIED BY THE
ADMINISTRATION .
(4) “TINCTURE” MEANS A SOLUTION THA T IS:
(I) DISSOLVED IN ALCOHOL , GLYCERIN, OR VEGETABLE OIL ;
AND
(II) DISTRIBUTED IN A D ROPPER BOTTLE OF 4 OUNCES OR LESS .
(A) (B) (1) A PERSON MAY NOT SELL OR DISTRIBUTE A PROD UCT
INTENDED FOR HUMAN C ONSUMPTION OR INHALA TION THAT CONTAINS M ORE THAN
0.5 MILLIGRAMS OF TETRAH YDROCANNABINOL PER S ERVING OR 2.5 MILLIGRAMS
OF TETRAHYDROCANNABI NOL PER PACKAGE UNLE SS THE PERSON IS LIC ENSED
UNDER § 36–401 OF THIS TITLE AND TH E PRODUCT COMPLIES W ITH THE:
(I) MANUFACTURING STANDA RDS ESTABLISHED UNDE R §
36–203 OF THIS TITLE;
(II) LABORATORY TESTING S TANDARDS ESTABLISHED UNDER §
36–203 OF THIS TITLE; AND
(III) PACKAGING AND LABELI NG STANDARDS ESTABLI SHED
UNDER § 36–203 OF THIS TITLE.
(2) A PERSON MAY NOT SELL OR DISTRIBUTE A PROD UCT DESCRIBED
UNDER PARAGRAPH (1) OF THIS SUBSECTION T O AN INDIVIDUAL UNDE R THE AGE OF
21 YEARS.
(B) (C) A PERSON MAY NOT SELL OR DISTRIBUTE A CANNABI NOID
PRODUCT THAT IS NOT DERIVED FROM NATURAL LY OCCURRING BIOLOGI CALLY
ACTIVE CHEMICAL CONS TITUENTS. Ch. 254 2023 LAWS OF MARYLAND
– 90 –
(D) (1) NOTWITHSTANDING SUBSE CTION (B) OF THIS SECTION AND
SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , IT IS NOT A VIOLATIO N OF THIS
SECTION FOR A PERSON TO SELL OR DISTRIBUT E A HEMP–DERIVED TINCTURE
INTENDED FOR HUMAN C ONSUMPTION THAT CONT AINS:
(I) A RATIO OF CANNABIDI OL TO TETRAHYDROCANN ABINOL OF
AT LEAST 15 TO 1; AND
(II) 2.5 MILLIGRAMS OR LESS O F TETRAHYDROCANNABIN OL PER
SERVING AND 100 MILLIGRAMS OR LESS O F TETRAHYDROCANNABIN OL PER
PACKAGE.
(2) TO SELL OR DISTRIBUTE A HEMP–DERIVED TINCTURE UND ER THIS
SUBSECTION, A PERSON MUST PROVID E, AS REQUIRED BY THE ADMINISTRATION ,
TINCTURE SAMPLES FOR THE PURPOSE OF TESTI NG TO DETERMINE CHEMICAL
POTENCY AND COMPOSIT ION LEVELS AND TO DE TECT AND QUANTIFY
CONTAMINANTS .
(C) (E) A PERSON WHO VIOLATES SUBSECTION (A) (B) OF THIS SECTION
IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS SUBJECT TO A FINE NOT
EXCEEDING $5,000.
(D) (F) A PERSON WHO VIOLATES SUBSECTION (B) (C) OF THIS SECTION
IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS SUBJECT TO A FINE NOT
EXCEEDING $10,000.
SUBTITLE 12. LEGAL PROTECTIONS.
36–1201.
THE FOLLOWING PERSONS ACTING IN ACCORDANCE WITH THE PROVISIONS
OF THIS TITLE MAY NO T BE SUBJECT TO ARRE ST, PROSECUTION , REVOCATION OF
MANDATORY SUPERVISIO N, PAROLE, OR PROBATION , OR ANY CIVIL OR
ADMINISTRATIVE PENAL TY, INCLUDING A CIVIL PE NALTY OR DISCIPLI NARY ACTION
BY A PROFESSIONAL LI CENSING BOARD , OR BE DENIED ANY RIG HT OR PRIVILEGE ,
FOR THE USE OF OR PO SSESSION OF CANNABIS THAT IS AUTHORIZED U NDER THIS
TITLE:
(1) A QUALIFYING PATIENT ;
(2) A CANNABIS LICENSEE OR CANNABIS REGISTRA NT THAT IS
LICENSED OR REGISTER ED UNDER THIS TITLE ; WES MOORE, Governor Ch. 254
– 91 –
(3) A CERTIFYING PROVIDE R;
(4) A CAREGIVER;
(5) AN ACADEMIC RESEARCH REPRESENTATIVE PURCH ASING
MEDICAL CANNABIS UND ER § 36–701 SUBTITLE 7 OF THIS TITLE;
(6) A HOSPITAL, MEDICAL FACILITY , OR HOSPICE PROGRAM W HERE A
QUALIFYING PATIENT I S RECEIVING TREATMEN T; OR
(7) DESIGNATED SCHOOL PE RSONNEL AUTHORIZED T O ADMINISTER
MEDICAL CANNABIS TO A STUDENT IN ACCORDA NCE WITH THE GUIDELI NES
ESTABLISHED UNDER § 7–446 OF THE EDUCATION ARTICLE UNLESS THE AC T OR
OMISSION CONSTITUTES GROSS NEGLIGENCE OR WANTON OR WILLFUL
MISCONDUCT .
SUBTITLE 13. CIVIL IMMUNITIES AND LIABILITIES RESERVED.
36–1301.
(A) EXCEPT AS PROVIDED IN THIS SECTION, NEITHER THE STATE NOR ANY
OF ITS POLITICAL SUB DIVISIONS MAY DENY A BENEFIT, AN ENTITLEMENT , A
DRIVER’S LICENSE, A PROFESSIONAL LICEN SE, HOUSING ASSISTANCE , SOCIAL
SERVICES, OR OTHER BENEFITS BA SED ON LAWFUL CANNAB IS USE OR FOR THE
PRESENCE OF CANNABIN OIDS OR CANNABINOID METABOLITES IN THE URINE ,
BLOOD, SALIVA, BREATH, HAIR, OR OTHER TISSUE OR F LUID OF AN INDIVIDUA L WHO
IS AT LEAST 21 YEARS OLD OR A QUALI FYING PATIENT WHO IS UNDER THE AGE OF
21 YEARS.
(B) AN INDIVIDUAL MAY NOT BE DENIED CUSTODY OF OR VISITATION WITH
A MINOR FOR ACT ING IN ACCORDANCE WI TH THIS TITLE, UNLESS THE INDIVIDUA L’S
BEHAVIOR CREATES AN UNREASONABLE DANGER TO THE MINOR THAT CA N BE
CLEARLY ARTICULATED AND SUBSTANTIATED .
(C) EXCEPT AS PROVIDED IN THIS SECTION, NEITHER THE STATE NOR ANY
OF ITS POLITICAL SUB DIVISIONS MAY DENY EMPLOY MENT OR A CONTRACT T O AN
INDIVIDUAL FOR A PRI OR CONVICTION FOR A NONVIOLENT CANNABIS OFFENSE
THAT DOES NOT INVOLV E DISTRIBUTION TO MI NORS.
(D) FOR THE PURPOSES OF M EDICAL CARE, INCLUDING ORGAN AND TISSUE
TRANSPLANTS :
Ch. 254 2023 LAWS OF MARYLAND
– 92 –
(1) THE USE OF CANNABIS DOES NOT CO NSTITUTE THE USE OF AN
ILLICIT SUBSTANCE OR OTHERWISE DISQUALIFY AN INDIVIDUAL FROM N EEDED
MEDICAL CARE ; AND
(2) MAY BE CONSIDERED ON LY WITH RESPECT TO E VIDENCE–BASED
CLINICAL CRITERIA .
(E) (1) THIS SECTION DOES NOT PREVENT A GO VERNMENT EMPLOYER
FROM DISCIPLINING AN EMPLOYEE OR A CONTRA CTOR FOR:
(I) INGESTING CANNABIS I N THE WORKPLACE ; OR
(II) WORKING WHILE IMPAIR ED BY CANNABIS .
(2) THE PROTECTIONS PROVI DED BY THIS SECTION DO NOT APPLY TO
THE EXTENT THAT THEY CONFLICT WITH A GOVERNMENT EM PLOYER’S
OBLIGATIONS UNDER FE DERAL LAW OR TO THE EXTENT THAT THEY WOU LD
DISQUALIFY THE ENTIT Y FROM A MONETARY OR LICENSING–RELATED BENEFIT
UNDER FEDERAL LAW .
(3) THIS SECTION DOES NOT AUTHORIZE ANY PERSON TO ENGAGE IN,
AND DOES NOT PREVENT THE IMPOSITI ON OF ANY CIVIL, CRIMINAL, DISCIPLINE, OR
OTHER PENALTIES , INCLUDING DISCIPLINE OR TERMINATION BY A GOVERNMENT
EMPLOYER FOR ENGAGIN G IN ANY TASK WHILE UNDER THE INFLUENCE OF
CANNABIS, WHEN DOING SO WOULD CONSTITUTE NEGLIGENC E OR PROFESS IONAL
MALPRACTICE .
(F) NOTHING IN THIS SECTI ON MAY BE CONSTRUED TO PREVENT OR
PROHIBIT ANY EMPLOYE R FROM DENYING EMPLO YMENT OR A CONTRACT TO AN
INDIVIDUAL OR DISCIP LINING AN EMPLOYEE O R A CONTRACTOR FOR T ESTING
POSITIVE FOR THE PRE SENCE OF CANNABINOID S OR CANNABINOID METABO LITES
IN THE URINE, BLOOD, SALIVA, BREATH, HAIR, OR OTHER TISSUE OR F LUID OF THE
EMPLOYEE’S OR CONTRACTOR ’S BODY, IF THE TEST WAS COND UCTED IN
ACCORDANCE WITH THE EMPLOYER’S ESTABLISHED DRUG T ESTING POLICY.
36–1302.
(A) A HOLDER OF A PROFESSIONAL OR OCCU PATIONAL LICENSE MAY NOT
BE SUBJECT TO PROFES SIONAL DISCIPLINE FO R PROVIDING ADVICE O R SERVICES
RELATED TO CANNABIS ESTABLISHMENTS OR AP PLICATIONS TO OPERAT E
CANNABIS ESTABLISHME NTS ON THE BASIS THA T CANNABIS IS ILLEGA L UNDER
FEDERAL LAW.
WES MOORE, Governor Ch. 254
– 93 –
(B) AN APPLICANT FOR A PR OFESSIONAL OR OCCUPA TIONAL LICENSE MAY
NOT BE DENIED A LICE NSE BASED ON PREVIOU S EMPLOYMENT RELATED TO
CANNABIS ESTABLISHME NTS OPERATING IN ACC ORDANCE WITH STATE LAW.
36–1303.
AN AGENCY OR A POLITI CAL SUBDIVISION OF T HE STATE MAY NOT RELY ON A
VIOLATION OF FEDERAL LAW RELATED TO CANNA BIS AS THE SOLE BASI S FOR
TAKING AN ADVERSE AC TION AGAINST A PERSO N.
36–1304.
(A) IT IS THE PUBLIC POLI CY OF THE STATE THAT CONTRACTS RELATED TO
THE OPERATION OF A C ANNABIS ESTABLISHMEN T LICENSED IN ACCORDAN CE WITH
THIS SUBTITLE ARE EN FORCEABLE.
(B) IT IS THE PUBLIC POLI CY OF THE STATE THAT NO CONTRAC T ENTERED
INTO BY A LICENSED C ANNABIS ESTABLISHMEN T OR ITS AGENTS AS A UTHORIZED IN
ACCORDANCE WITH A VA LID LICENSE, OR BY THOSE WHO ALLO W PROPERTY TO BE
USED BY A CANNABIS E STABLISHMENT , ITS EMPLOYEES , OR ITS AGENTS AS
AUTHORIZED IN ACCORD ANCE WITH A VALID LI CENSE, SHALL BE UNENFORCEAB LE
ON THE BASIS THAT CU LTIVATING, OBTAINING, MANUFACTURING , DISTRIBUTING,
DISPENSING, TRANSPORTING , SELLING, POSSESSING, OR USING CANNABIS IS
PROHIBITED BY FEDERA L LAW.
SUBTITLE 14. CAPITAL ACCESS PROGRAM.
36–1401.
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(B) “BORROWER” MEANS A BUSINESS THA T:
(1) QUALIFIES AS A SMALL BUSINESS UNDER THE U.S. SMALL
BUSINESS ADMINISTRATION SIZE S TANDARDS;
(2) APPLIES TO A LENDER FOR BUSINESS FINANCI NG; AND
(3) HAS FEWER THAN 50 EMPLOYEES.
(C) “DEPARTMENT ” MEANS THE DEPARTMENT OF COMMERCE.
(C) (D) “LENDER” MEANS: Ch. 254 2023 LAWS OF MARYLAND
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(1) A CREDIT UNION , AS DEFINED IN § 1–101 OF THE FINANCIAL
INSTITUTIONS ARTICLE;
(2) A FINANCIAL INSTITUT ION, AS DEFINED IN § 1–101 OF THE
FINANCIAL INSTITUTIONS ARTICLE; OR
(3) A COMMUNITY DEVELOPM ENT FINANCIAL INSTIT UTION, AS
DEFINED IN 12 U.S.C. § 4702(5).
(D) (E) “PROGRAM” MEANS THE CAPITAL ACCESS PROGRAM
ESTABLISHED UNDER TH IS SUBTITLE.
36–1402.
THERE IS A CAPITAL ACCESS PROGRAM IN THE DEPARTMENT OF
COMMERCE.
36–1403.
THE PURPOSE OF THE PROGRAM IS TO STIMULA TE OPPORTUNITIES FOR
SOCIAL EQUITY LICENSEES THAT HA VE DIFFICULTY OBTAIN ING FINANCING AND TO
ESTABLISH A LOAN LOS S RESERVE ACCOUNT .
36–1404.
(A) A LOAN TO A SOCIAL EQU ITY LICENSEE QUALIFI ES UNDER THE
PROGRAM IF THE LOAN :
(1) SATISFIES THE LENDIN G CRITERIA OF THE FINANCIAL
INSTITUTION LENDER; AND
(2) HAS A TERM NOT EXCEE DING 10 YEARS; AND
(3) DOES NOT EXCEED :
(I) FOR A DISPENSARY , $500,000; OR
(II) FOR A GROWER OR PROC ESSOR, $1,000,000.
(B) A LOAN THAT QUALIFIES UNDER SUBSECTION (A) OF THIS SECTION MAY
BE SHORT OR LONG TERM, HAVE FIXED OR VARIAB LE RATES, AND BE SECURED OR
UNSECURED .
WES MOORE, Governor Ch. 254
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36–1405.
(A) IF A LENDER WOULD LIK E TO TO PARTICIPATE IN THE PROGRAM, THE
LENDER MUST A LENDER SHALL ENROLL THE QUALIFYIN G LOAN IN THE PROGRAM
NOT MORE THAN 30 DAYS AFTER THE DATE OF THE FIRST DISBURSEME NT OF THE
LOAN.
(B) A LENDER MAY ENROLL AL L OR A PORTION OF A QUALIFYING LOAN IN
AN AMOUNT OF NOT MOR E THAN:
(1) FOR A DISPENSARY , $500,000; OR
(2) FOR A GROWER OR PROC ESSOR, $1,000,000.
36–1406.
(A) THE DEPARTMENT SHALL ESTABLISH A LOAN LOS S RESERVE ACCOUNT
FOR A LENDER WHEN TH E LENDER ENROLLS ITS FIRST LOAN UNDER THE PROGRAM.
(B) AT THE TIME OF ENROLL MENT:
(1) THE BORROWER SHALL M AKE A PAYMENT TO THE ACCOUNT OF
BETWEEN 0% AND 7% OF THE ENROLLED LOAN AMOUNT;
(2) THE LENDER SHALL MAKE A PAYMENT TO THE ACC OUNT OF AT
LEAST 2% OF THE ENROLLED AMOU NT; AND
(3) THE DIVISION ADMINISTRATION SHALL MAKE A MATCHIN G
PAYMENT TO THE ACCOU NT IN AN AMOUNT EQUA L TO THE BORROWER AN D
LENDER’S AGGREGATE PAYMENT UNDER ITEMS (1) AND (2) OF THIS SUBSECTION .
(C) THE LOAN LOSS RESERVE ACCOUNT OF A LENDER SHALL BE AVAILABLE
FOR THE LENDER TO WI THDRAW IF A BORROWER DEFAULTS ON A QUALIF YING LOAN.
(D) THE DEPARTMENT SHALL COLL ABORATE WITH THE OFFICE OF SOCIAL
EQUITY ESTABLISHED UN DER § 1–309.1 OF THIS ARTICLE TO I DENTIFY AND ASSIST
BUSINESSES WITH OBTA INING FINANCING FROM THE PROGRAM.
(E) THE DEPARTMENT SHALL ESTA BLISH PROCEDURES FOR A LENDER TO
WITHDRAW FROM THE PROGRAM.
SUBTITLE 15. BANKING AND INSURANCE.
36–1501. Ch. 254 2023 LAWS OF MARYLAND
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(A) IN THIS SUBTITLE THE FOLLOWI NG WORDS HAVE THE ME ANINGS
INDICATED.
(B) “CANNABIS–RELATED LEGITIMATE B USINESS” MEANS A
MANUFACTURER , PRODUCER, OR ANOTHER PERSON TH AT:
(B) “CANNABIS BUSINESS ” MEANS A MANUFACTURER , PRODUCER, OR
ANOTHER PERSON THAT :
(1) PARTICIPATES IN ANY BUSINESS OR ORGANIZED ACTIVIT Y THAT
INVOLVES HANDLING CA NNABIS OR CANNABIS P RODUCTS, INCLUDING
CULTIVATING, PRODUCING, MANUFACTURING , SELLING, TRANSPORTING ,
DISPLAYING, DISPENSING, DISTRIBUTING, OR PURCHASING CANNAB IS OR CANNABIS
PRODUCTS; AND
(2) ENGAGES IN AN ACTIVI TY DESCRIBED IN ITEM (1) OF THIS
SUBSECTION IN ACCORD ANCE WITH STATE LAW.
(C) “DEPOSITORY INSTITUTIO N” MEANS A STATE–CHARTERED OR
FEDERALLY CHARTERED FINANCIAL INSTITUTIO N, OTHER–STATE BANK , OR
FOREIGN BRANCH THAT :
(1) IS LOCATED IN THE STATE OR MAINTAINS BR ANCHES IN THE
STATE; AND
(2) IS AUTHORIZED TO MAI NTAIN ACCOUNTS .
(C) (D) (1) “SERVICE PROVIDER ” MEANS A BUSINESS , AN
ORGANIZATION , OR ANY OTHER PERSON THAT:
(I) SELLS GOODS OR SERVI CES TO A CANNABIS–RELATED
CANNABIS LEGITIMATE BUSINESS; OR
(II) PROVIDES ANY BUSINES S SERVICES, INCLUDING THE SALE
OR LEASE OF REAL OR ANY OTHER PROPERTY , LEGAL OR OTHER LICEN SED
SERVICES, OR ANY OTHER ANCILLA RY SERVICE, RELATING TO CANNABIS .
(2) “SERVICE PROVIDER ” DOES NOT INCLUDE A BUSINESS , AN
ORGANIZATION , OR ANY OTHER PERSON THAT PARTICIPATES IN ANY BUSINESS OR
ORGANIZED ACTIVITY T HAT INVOLVES HANDLIN G CANNABIS OR CANNAB IS
PRODUCTS, INCLUDING CULTIVATIN G, PRODUCING, MANUFACTURING , SELLING, WES MOORE, Governor Ch. 254
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TRANSPORTING , DISPLAYING, DISPENSING, DISTRIBUTING, OR PURCHASING
CANNABIS OR CANNABIS PRODUCTS.
36–1502.
THE PROVISIONS IN THI S SUBTITLE APPLY TO :
(1) ALL BANKS, CREDIT UNIONS , AND OTHER ENTITIES O PERATING AS
DEPOSITORY INSTITUTI ONS IN THE STATE; AND
(2) INSURANCE COMPANIES AND INSURANCE PRODUCER S
OPERATING IN THE STATE.
36–1503.
(A) THE STATE BANKING REGULAT OR OFFICE COMMISIONER OF
FINANCIAL REGULATION MAY NOT:
(1) TERMINATE OR LIMIT T HE DEPOSIT INSURANCE OR SHARE
INSURANCE OF A DEPOS ITORY INSTITUTION UN DER THE FEDERAL DEPOSIT
INSURANCE ACT OR THE FEDERAL CREDIT UNION ACT, A DEPOSITORY
INSTITUTION OPERATIN G IN THE STATE UNDER THE FINANCIAL INSTITUTIONS
ARTICLE, OR TAKE ANY OTHER AD VERSE ACTION AGAINST A DEPOSITORY
INSTITUTION UNDER 12 U.S.C. § 1818 SOLELY BECAUSE THE D EPOSITORY
INSTITUTION PROVIDES OR HAS PROVIDED FINA NCIAL SERVICES TO A
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER;
(2) PROHIBIT, PENALIZE, OR OTHERWISE DISCOUR AGE A
DEPOSITORY INSTITUTI ON FROM PROVIDING FI NANCIAL SERVICES TO A
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS IN THE STATE;
(3) RECOMMEND , INCENTIVIZE, OR ENCOURAGE A DEPOS ITORY
INSTITUTION NOT TO TO NOT OFFER FINANCIAL SERV ICES TO AN ACCOUNT H OLDER,
OR TO DOWNGRADE OR C ANCEL THE FINANCIAL SERVICES OFFERED TO AN
ACCOUNT HOLDER SOLEL Y BECAUSE:
(I) THE ACCOUNT HOLDER I S A CANNABIS–RELATED CANNABIS
LEGITIMATE BUSINESS OR SERVICE PROVIDER, OR IS AN EMPLOYEE , OWNER, OR
OPERATOR OF A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE
PROVIDER;
(II) THE ACCOUNT HOLDER L ATER BECOMES AN EMPL OYEE,
OWNER, OR OPERATOR OF A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS
OR SERVICE PROVIDER ; OR Ch. 254 2023 LAWS OF MARYLAND
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(III) THE DEPOSITORY INSTI TUTION WAS NOT AWARE THAT THE
ACCOUNT HOLDER IS AN EMPLOYEE, OWNER, OR OPERATOR OF A
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER;
(4) TAKE ANY ADVERSE OR CORRECTIVE SUPERVISO RY ACTION ON A
LOAN MADE TO :
(I) A CANNABIS–RELATED LEGITIMATE BUSINESS OR SERVICE
PROVIDER SOLELY BECA USE THE BUSINESS IS A CANNABIS–RELATED CANNABIS
LEGITIMATE BUSINESS OR SERVICE PROVIDER;
(II) AN EMPLOYEE , OWNER, OR OPERATOR OF A
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER
SOLELY BECAUSE THE E MPLOYEE, OWNER, OR OPERATOR IS EMPLO YED BY, OWNS,
OR OPERATES A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE
PROVIDER, AS APPLICABLE; OR
(III) AN OWNER OR OPERATOR OF REAL ESTATE OR EQ UIPMENT
THAT IS LEASED TO A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR
SERVICE PROVIDER SOL ELY BECAUSE THE OWNE R OR OPERATOR OF THE R EAL
ESTATE OR EQUIPMENT LEASED THE EQUIPMENT OR REAL ESTATE TO A
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER, AS
APPLICABLE; OR
(5) PROHIBIT OR PENALIZE A DEPOSITORY INSTITU TION, OR AN
ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN ASSOCIATION WITH A
DEPOSITORY INSTITUTI ON, OR OTHERWISE DISCOUR AGE A DEPOSITORY
INSTITUTION, OR AN ENTITY PERFORM ING A FINANCIAL SERV ICE FOR OR IN
ASSOCIATION WITH A DEPOSITOR Y INSTITUTION, FROM ENGAGING IN A F INANCIAL
SERVICE FOR A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE
PROVIDER.
(B) SUBSECTION (A) OF THIS SECTION SHAL L APPLY TO AN INSTIT UTION
APPLYING FOR A DEPOS ITORY INSTITUTION CH ARTER TO THE SAME EXTEN T AS IT
APPLIES TO A DEPOSIT ORY INSTITUTION .
36–1504.
FOR THE PURPOSES OF TITLE 18 U.S.C. §§ 1956 AND 1957 AND ALL OTHER
PROVISIONS OF FEDERA L LAW, THE PROCEEDS FROM A TRANSACTION INVOLVIN G
ACTIVITIES OF A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR WES MOORE, Governor Ch. 254
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SERVICE PROVIDER MAY NOT BE CONSIDERED PR OCEEDS FROM AN UNLAW FUL
ACTIVITY SOLELY BECA USE:
(1) THE TRANSACTION INVO LVES PROCEEDS FROM A
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER; OR
(2) THE TRANSACTION INVOLVES PROCEEDS FR OM:
(I) CANNABIS–RELATED CANNABIS ACTIVITIES CONDUCTED BY
A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS; OR
(II) ACTIVITIES CONDUCTED BY A SERVICE PROVIDE R.
36–1505.
(A) WITH RESPECT TO PROVI DING A FINANCIAL SER VICE TO A
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR A SERVIC E PROVIDER, A
DEPOSITORY INSTITUTI ON, ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN
ASSOCIATION WITH A D EPOSITORY INSTITUTIO N, OR INSURER THAT PROV IDES A
FINANCIAL SERVICE TO A CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR
SERVICE PROVIDER , AND THE OFFICERS , DIRECTORS, AND EMPLOYEES OF THA T
DEPOSITORY INSTITUTI ON, ENTITY, OR INSURER MAY NOT B E HELD LIABLE UNDER
ANY STATE LAW OR REGULATI ON:
(1) SOLELY FOR PROVIDING THE FINANCIAL SERVIC E; OR
(2) FOR FURTHER INVESTIN G ANY INCOME DERIVED FROM THE
FINANCIAL SERVICE .
(B) AN INSURER THAT ENGAG ES IN THE BUSINESS O F INSURANCE WITH A
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER OR
THAT OTHERWISE ENGAG ES WITH A PERSON IN A TRANSACTION ALLOWED UND ER
STATE LAW RELATED TO CANNABIS, AND THE OFFICERS , DIRECTORS, AND
EMPLOYEES OF THAT IN SURER MAY NOT BE HEL D LIABLE UNDER STATE LAW OR
REGULATION :
(1) SOLELY FOR ENGAGING IN THE BUSINESS OF I NSURANCE; OR
(2) FOR FURTHER INVESTIN G ANY INCOME DERIVED F ROM THE
BUSINESS OF INSURANC E.
(C) A DEPOSITORY INSTITUTI ON THAT HAS A LEGAL INTEREST IN THE
COLLATERAL FOR A LOA N OR ANOTHER FINANCI AL SERVICE PROVIDED TO AN
OWNER, EMPLOYEE, OR OPERATOR OF A CANNABIS–RELATED CANNABIS Ch. 254 2023 LAWS OF MARYLAND
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LEGITIMATE BUSINESS OR SERVICE PROV IDER, OR TO AN OWNER OR OP ERATOR OF
REAL ESTATE OR EQUIP MENT THAT IS LEASED OR SOLD TO A CANNABIS–RELATED
CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER, MAY NOT BE SUBJECT T O
CRIMINAL, CIVIL, OR ADMINISTRATIVE FO RFEITURE OF THAT LEG AL INTEREST
UNDER STATE LAW FOR PROVIDI NG THE LOAN OR OTHER FINANCIAL SERVICE .
36–1506.
(A) THIS SUBTITLE DOES NO T REQUIRE A DEPOSITO RY INSTITUTION ,
ENTITY PERFORMING A FINANCIAL SERVICE FO R OR IN ASSOCIATION WITH A
DEPOSITORY INSTITUTI ON, OR INSURER TO PROVIDE FINANCIAL SE RVICES TO A
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS, SERVICE PROVIDER , OR
ANY OTHER BUSINESS .
(B) THIS SUBTITLE MAY NOT BE CONSTRUED TO LIMI T OR OTHERWISE
RESTRICT THE GENERAL EXAMINATION , SUPERVISORY , AND ENFORCEMENT
AUTHORITY OF THE STATE BANKING REGULAT OR COMMISSIONER OF FINANCIAL
REGULATION, PROVIDED THAT THE BA SIS FOR ANY SUPERVIS ORY OR
ENFORCEMEN T ACTION IS NOT THE PROVISION OF FINANCI AL SERVICES TO A
CANNABIS–RELATED CANNABIS LEGITIMATE BUSINESS OR SERVICE PROVIDER.
(C) THIS SUBTITLE MAY NOT BE CONSTRUED TO INTE RFERE WITH THE
REGULATION OF THE BU SINESS OF INSURANCE .
36–1507.
THE STATE MAY NO T COOPERATE OR AID F EDERAL LAW ENFORCEME NT
AUTHORITIES ATTEMPTI NG TO PROSECUTE FINA NCIAL INSTITUTIONS T HAT ARE
LAWFULLY OPERATING W ITHIN THE CONFINES O F THIS SUBTITLE.
Article – Tax – General
2–1302.2.
AFTER MAKING THE DIST RIBUTIONS REQUIRED U NDER §§ 2–1301 THROUGH
2–1302.1 OF THIS SUBTITLE , OF THE SALES AND USE TAX COLLECTED UNDER §
11–104(K) OF THIS ARTICLE FROM THE SALE OF CANNABIS FROM A DISPENSARY TO
A CONSUMER UNDER TITLE 36, AS DEFINED IN § 1–101 OF THE ALCOHOLIC
BEVERAGES AND CANNABIS ARTICLE, THE COMPTROLLER QUARTERLY SHALL
DISTRIBUTE:
(1) TO THE CANNABIS REGULATION AND ENFORCEMENT FUND,
ESTABLISHED UNDER § 36–206 OF THE ALCOHOLIC BEVERAGES AND CANNABIS WES MOORE, Governor Ch. 254
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ARTICLE, AN AMOUNT NECESSARY TO DEFRAY THE ENTIRE COST OF T HE
OPERATION OF THE CANNABIS REGULATION AND ENFORCEMENT DIVISION
OPERATIONS AND ADMIN ISTRATIVE EXPENSES O F THE MARYLAND CANNABIS
ADMINISTRATION ESTABLISHED UNDER TITLE 36 OF THE ALCOHOLIC BEVERAGES
AND CANNABIS ARTICLE;
(2) AFTER MAKING THE DISTRIBUTION REQUIRED UNDER ITEM (1) OF
THIS SECTION:
(2) (I) 30% 35% TO THE COMMUNITY REINVESTMENT AND REPAIR
FUND UNDER § 1–322 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE
FOR FISCAL YEARS 2024 THROUGH 2033;
(3) 1.5% TO COUNTIES AND MUNICIPALITIES , WHICH SHALL BE
ALLOCATED TO EACH JU RISDICTION BASED ON THE PERCENTAGE OF RE VENUE
COLLECTED FROM THAT JURISDICTION;
(3) 1.5% OF THE REVENUE COLLE CTED IN EACH COUNTY OUTSIDE
THE BOUNDARIES OF A MUNICIPALITY TO THE COUNTY, TO BE USED FOR
BEHAVIORAL HEALTH AND DRUG TREATMENT ;
(4) 1.5% OF THE REVENUE COLLE CTED IN EACH MUNICIP ALITY TO
THE MUNICIPALITY , TO BE USED FOR BEHAV IORAL HEALTH AND DRU G TREATMENT ;
(II) 5% TO COUNTIES, WHICH SHALL BE ALLOC ATED TO EACH
COUNTY BASED ON THE PERCENTAGE OF REVENU E COLLECTED FROM THA T COUNTY,
EXCEPT THAT A COUNTY SHALL DISTRIBUTE TO A MUNICIPALITY LOCAT ED IN THE
COUNTY 50% OF THE ALLOCATION RE CEIVED UNDER THIS IT EM THAT IS
ATTRIBUTABLE TO THE SALES AND USE TAX RE VENUE GENERATED BY A DISPENSARY
LOCATED IN THAT MUNIC IPALITY;
(4) (5) (III) 1.5% 5% TO THE CANNABIS PUBLIC HEALTH FUND
ESTABLISHED UNDER § 13–4505 OF THE HEALTH – GENERAL ARTICLE;
(5) (6) (IV) FOR FISCAL YEARS 2024 THROUGH 2028, 1.5% 5% TO
THE CANNABIS BUSINESS ASSISTANCE FUND ESTABLISHED UNDER § 5–1901 OF
THE ECONOMIC DEVELOPMENT ARTICLE; AND
(6) (7)(3) ANY BALANCE REMAININ G AFTER THE DISTRIBU TIONS
REQUIRED UNDER PARAGRAPHS (1) THROUGH ITEMS (1) AND (2) (5) (6) OF THIS
SECTION TO THE GENERAL FUND OF THE STATE.
2–1303.
Ch. 254 2023 LAWS OF MARYLAND
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After making the distributions required under §§ 2–1301 through [2–1302.1]
2–1302.2 of this subtitle, the Comptroller shall pay:
(1) revenues from the hotel surcharge into the Dorchester County
Economic Development Fund established under § 10–130 of the Economic Development
Article;
(2) to the Blueprint for Maryland’s Future Fund established under § 5–206
of the Education Article, the following percentage of the remaining sales and use tax
revenues:
(i) for fiscal year 2023, 9.2%;
(ii) for fiscal year 2024, 11.0%;
(iii) for fiscal year 2025, 11.3%;
(iv) for fiscal year 2026, 11.7%; and
(v) for fiscal year 2027 and each fiscal year thereafter, 12.1%; and
(3) the remaining sales and use tax revenue into the General Fund of the
State.
11–104.
(K) THE SALES AND USE TAX RATE FOR THE SALE OF CANNABIS FROM A
DISPENSARY TO A CONS UMER UNDER TITLE 36, AS DEFINED IN § 1–101 OF THE
ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE IS AS FOLLOWS:, FOR FISCAL
YEAR 2024 AND EACH FISCAL YEAR THEREAFTE R, 9%.
(1) FOR FISCAL YEAR 2024, 6%;
(2) FOR FISCAL YEAR 2025, 7%;
(3) FOR FISCAL YEAR 2026, 8%;
(4) FOR FISCAL YEAR 2027, 9%; AND
(5) FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR THEREAFTER ,
10%.
11–245.
THE SALES AND USE TAX DOES NOT APPLY TO THE SALE OF: WES MOORE, Governor Ch. 254
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(1) MEDICAL CANNABIS UND ER TITLE 36 OF THE ALCOHOLIC
BEVERAGES AND CANNABIS ARTICLE; OR
(2) CANNABIS BETWEEN CAN NABIS ESTABLISHMENTS BUSINESSES
THAT ARE LICENSED UN DER TITLE 36 OF THE ALCOHOLIC BEVERAGES AND
CANNABIS ARTICLE.
Article – Economic Development
5–1901.
(a) (1) In this section[,] THE FOLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “Fund” means the Cannabis Business Assistance Fund.
(3) (I) “PERSONAL NET WORTH ” MEANS THE NET VALUE OF THE
ASSETS OF AN INDIVI DUAL REMAINING AFTER TOTAL LIABILITIES AR E DEDUCTED,
INCLUDING THE INDIVI DUAL’S SHARE OF ASSETS HE LD JOINTLY OR AS COM MUNITY
PROPERTY WITH THE IN DIVIDUAL’S SPOUSE.
(II) “PERSONAL NET WORTH ” DOES NOT INCLUDE :
1. THE INDIVIDUAL ’S OWNERSHIP INTEREST IN THE
APPLICANT;
2. THE INDIVIDUAL ’S EQUITY IN THE INDI VIDUAL’S
PRIMARY PLACE OF RES IDENCE; OR
3. THE CASH VALUE OF AN Y QUALIFIED RETIREME NT
SAVINGS PLANS OR IND IVIDUAL RETIREMENT A CCOUNTS.
(b) There is a Cannabis Business Assistance Fund.
(c) The purpose of the Fund is to assist small, minority –owned, and
women–owned businesses entering the adult–use cannabis industry.
(d) The Department shall administer the Fund.
(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of
the State Finance and Procurement Article.
(2) The State Treasurer shall hold the Fund separately, and the
Comptroller shall account for the Fund. Ch. 254 2023 LAWS OF MARYLAND
– 104 –
(f) The Fund consists of:
(1) money appropriated in the State budget to the Fund; [and]
(2) REVENUE DISTRIBUTED TO THE FUND IN ACCORDANCE WI TH §
2–1302.2 OF THE TAX – GENERAL ARTICLE; AND
(3) any other money from any other source accepted for the benefit of the
Fund.
(g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only
for:
(i) grants or loans to small, minority–owned, or women–owned
businesses for:
1. license application assistance for participation in the
adult–use cannabis industry;
2. assistance with the operating or capital expenses of a
business participating in the adult–use cannabis industry; or
3. targeted training to support participation in the adult–use
cannabis industry; and
(ii) grants to historically black colleges and universities for
cannabis–related programs and business development organizations, including incubators,
to train and assist small, minority, and women business owners and entrepreneurs seeking
to become licensed to participate in the adult–use cannabis industry.
(2) The Department:
(i) shall prioritize awarding grants and loans in accordance with
paragraph (1) of this subsection to:
1. populations that have been historically disproportionately
impacted by the enforcement of laws criminalizing the use of cannabis; and
2. individuals who have been convicted of a violation of a law
criminalizing the use of cannabis; and
3. SOCIAL EQUITY LICENS EES TO ASSIST WITH
START–UP OPERATING AND CAP ITAL FUNDING NEEDS ; AND
WES MOORE, Governor Ch. 254
– 105 –
(ii) may not award grants or loans to small, minority, and women
business owners and entrepreneurs with a personal net worth exceeding $1,700,000.
(3) In order to award grants and loans in accordance with paragraph (1) of
this subsection, the Department shall develop partnerships with:
(i) traditional minority–serving institutions in the State and
surrounding jurisdictions, including historically black colleges and universities;
(ii) trade associations representing minority and women–owned
businesses; and
(iii) the Governor’s Office of Small, Minority, and Women Business
Affairs.
(h) (1) The State Treasurer shall invest the money of the Fund in the same
manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the Fund.
(i) Expenditures from the Fund may be made only in accordance with the State
budget.
Article – State Finance and Procurement
6–201.
(e) “Financial institution” means:
(1) any banking institution;
(2) any national banking association;
(3) an institution that is incorporated under the laws of any other state as
a bank; [and] OR
(4) an institution that is incorporated under the laws of this State or of the
United States as a savings and loan association.
6–226.
(a) (2) (i) Notwithstanding any other provision of law, and unless
inconsistent with a federal law, grant agreement, or other federal requirement or with the
terms of a gift or settlement agreement, net interest on all State money allocated by the
State Treasurer under this section to special funds or accounts, and otherwise entitled to Ch. 254 2023 LAWS OF MARYLAND
– 106 –
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General
Fund of the State.
(ii) The provisions of subparagraph (i) of this paragraph do not apply
to the following funds:
170. the Cannabis Public Health Fund; [and]
171. the Community Reinvestment and Repair Fund;
172. THE CANNABIS REGULATION AND ENFORCEMENT
FUND; AND
173. THE MEDICAL CANNABIS COMPASSIONATE USE
FUND.
Article – State Personnel and Pensions
23–201.
(a) Except as provided in subsection (b) of this section, §§ 23–203 through 23–205
of this subtitle apply only to:
(13) an individual who, on and before the effective date of participation as
defined under § 31–101(c) of this article, is:
(i) a supportive service employee of the Board of Education of Kent
County;
(ii) an employee of the Town of Oakland;
(iii) an employee of the City of Frostburg;
(iv) an employee of the Town of Sykesville; or
(v) an employee of the Town of University Park; [and]
(14) an employee of the Maryland Automobile Insurance Fund on or after
the date that the Maryland Automobile Insurance Fund begins participation in the
Employees’ Pension System; AND
(15) THE EXECUTIVE DIRECTOR OF THE ALCOHOL, TOBACCO, AND
CANNABIS COMMISSION, IF THE EXECUTIVE DIRECTOR IS NOT A SWO RN POLICE
OFFICER WITH THE POW ERS GRANTED TO AN OF FICER OF THE FIELD WES MOORE, Governor Ch. 254
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ENFORCEMENT DIVISION UNDER § 1–313 OF THE ALCOHOLIC BEVERAGES AND
CANNABIS ARTICLE.
26–201.
(a) Except as provided in subsection (b) of this section, this subtitle applies only
to:
(22) the Executive Director of the Alcohol [and], Tobacco, AND CANNABIS
Commission, ONLY IF THE EXECUTIVE DIRECTOR IS A SWORN P OLICE OFFICER WITH
THE POWERS GRANTED T O AN OFFICER OR EMPL OYEE OF THE FIELD
ENFORCEMENT DIVISION UNDER § 1–313 OF THE ALCOHOLIC BEVERAGES AND
CANNABIS ARTICLE.
Article – Health – General
13–4505.
(a) There is a Cannabis Public Health Fund.
(b) The purpose of the Fund is to provide funding to address the health effects
associated with the legalization of adult–use cannabis.
(c) The Department shall administer the Fund.
(d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of
the State Finance and Procurement Article.
(2) The State Treasurer shall hold the Fund separately, and the
Comptroller shall account for the Fund.
(e) The Fund consists of:
(1) Revenue distributed to the Fund based on revenues from adult–use
cannabis;
(2) Money appropriated in the State budget to the Fund; [and]
(3) REVENUE DISTRIBUTED TO T HE FUND IN ACCORDANCE WI TH §
2–1302.2 OF THE TAX – GENERAL ARTICLE; AND
[(3)] (4) Any other money from any other source accepted for the benefit
of the Fund.
(f) The Fund may be used only for:
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(1) Supporting the Advisory Council in performing its duties;
(2) Supporting data collection and research on the effects of cannabis
legalization in the State;
(3) Providing funding for education and public awareness campaigns
related to cannabis use, including funding for educational programs to be used in schools;
(4) Supporting substance use disorder counseling and treatment for
individuals;
(5) Training and equipment for law enforcement to recognize impairments
due to cannabis; and
(6) Purchasing technology proven to be effective at measuring cannabis
levels in drivers.
(g) (1) The State Treasurer shall invest the money of the Fund in the same
manner as other State money may be invested.
(2) Any interest earnings of the Fund shall be credited to the Fund.
(h) Expenditures from the Fund may be made only in accordance with the State
budget.
SECTION 5. 6. AND BE IT FURTHER ENACTED, That Article – Alcoholic
Beverages of the Annotated Code of Maryland be renamed to be Article – Alcoholic
Beverages and Cannabis.
SECTION 6. 7. AND BE IT FURTHER ENACTED, That:
(a) The transfer of the Maryland Medical Cannabis Commission personnel to the
Alcohol, Tobacco, and Cannabis Commission Maryland Cannabis Administration to
oversee the regulation of cannabis under this Act shall be conducted in a manner that will
minimize the costs of the transfer and will result in a more cost–efficient operation for the
regulation of cannabis for the protection of the public health, safety, and welfare of the
State.
(b) The Cannabis Regulation and Enforcement Division of the Office of the
Executive Director of the Alcohol, Tobacco, and Cannabis Commission is the successor of
the Maryland Medical Cannabis Commission in matters concerning the regulation of
medical cannabis.
(b) The Maryland Cannabis Administration is the successor of the Maryland
Medical Cannabis Commission in matters concerning the regulation of medical cannabis.
WES MOORE, Governor Ch. 254
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(c) In every law, executive order, rule, regulation, policy, or document created by
an official, an employee, or a unit of this State, the names and titles of those agencies and
officials mean the names and titles of the successor agency or official.
SECTION 7. 8. AND BE IT FURTHER ENACTED, That all persons who, as of June
30, 2023 the effective date of this Act, are merit employees or contract staff in budgeted
positions of the Maryland Medical Cannabis Commission and whose positions are
transferred to the Cannabis Regulation and Enforcement Division of the Office of the
Executive Director of the Alcohol, Tobacco, and Cannabis Commission to oversee, the
regulation of cannabis provided by this Act, are hereby transferred to the Cannabis
Regulation and Enforcement Division of the Office of the Executive Director of the Alcohol,
Tobacco, and Cannabis Commission Maryland Cannabis Administration to oversee, the
regulation of cannabis provided by this Act, are hereby transferred to the Maryland
Cannabis Administration without any change or loss of rights, pay, working conditions,
benefits, rights, or status, and shall retain any merit system and retirement status they
may have on the date of transfer.
SECTION 8. 9. AND BE IT FURTHER ENACTED, That the balance of the Natalie
M. LaPrade Medical Cannabis Fund on the date immediately preceding the date this Act
takes effect shall be credited to the Cannabis Regulation and Enforcement Fund, and that
any funds credited to the Cannabis Regulation and Enforcement Fund may be used to cover
the costs of implementing this Act and regulating the cannabis industry in Maryland.
SECTION 9. 10. AND BE IT FURTHER ENACTED, That, notwithstanding any
other provision of law, from the date this Act takes effect to December 31, 2023, both
inclusive, the Commission Maryland Cannabis Administration is exempt from
procurement requirements under the State Finance and Procurement Article if the
procurement is for:
(1) banking services for the Cannabis Regulation and Enforcement
Division Administration to collect fees and tax revenue;
(2) banking services to help support cannabis businesses to transition from
an all cash system;
(3) a consultant to support the Cannabis Regulation and Enforcement
Division Administration in the process for cannabis licensure, including services related to
investigations and the financial or criminal history review of applicants; and
(4) a consultant to provide technical assistance to social equity applicants;
and
(5) communication services for public and consumer education campaigns
on cannabis laws and regulations and potential health and safety risks associated with
cannabis use; and
Ch. 254 2023 LAWS OF MARYLAND
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(5) (6) establishing a State cannabis testing laboratory at a preexisting site.
SECTION 10. 11. AND BE IT FURTHER ENACTED, That:
(a) To the extent practicable and authorized by the U.S. Constitution, a cannabis
licensee shall comply with the State’s Minority Business Enterprise Program.
(b) On or before 6 months after the issuance of a cannabis license under § 36–401
of the Alcoholic Beverages and Cannabis Article, the Governor’s Office of Small, Minority,
and Women Business Affairs, in consultation with the Office of the Attorney General and
the Office of Social Equity within the Alcohol, Tobacco, and Cannabis Commission and the
cannabis licensee, shall establish a clear plan for setting reasonable and appropriate
minority business enterprise participation goals and procedures for the procurement of
goods and services related to cannabis, including the cultivation, manufacturing, and
dispensing of cannabis.
(c) To the extent practicable, the goals and procedures specified in subsection (b)
of this section shall be based on the requirements of Title 14, Subtitle 3 of the State Finance
and Procurement Article and the regulations implementing that subtitle.
SECTION 11. 12. AND BE IT FURTHER ENACTED, That:
(a) (1) As soon as practicable after the effective date of this Act, the Cannabis
Regulation and Enforcement Division Maryland Cannabis Administration established
under § 36–201 of the Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5
of this Act, shall issue a license to shall, by regulation, establish a process for issuing up to
five grower licenses to operate as a cannabis grower under Title 36, Subtitle 4 of the
Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 of this Act, to one
applicant five applicants that:
(1) is a are recognized class member members of Pigford v. Glickman, 185
F.R.D. 82 (D.D.C. 1999), or In Re Black Farmers Litig., 856 F. Supp. 2d 1 (D.D.C. 2011).;
(2) were awarded damages pursuant to the claims processes established for
class members of Pigford v. Glickman or In Re Black Farmers Litig. and those damages
were related to farming operations in Maryland;
(3) have provided evidence, suitable to the Administration and consistent
with constitutional and federal requirements, that they have not been fully compensated for
the discrimination they have endured an d that they have experienced ongoing
discrimination or the continued effects of past discrimination; and
(4) satisfy any other criteria established by the Administration.
(2) An applicant awarded a license under paragraph (1) of this subsection
may subsequently apply for and be awarded a license to operate as a cannabis processor WES MOORE, Governor Ch. 254
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under Title 36, Subtitle 4 of the Alcoholic Beverages and Cannabis Article, as enacted by
Section 4 5 of this Act.
(b) Notwithstanding any other provision of law, a license issued under subsection
(a) of this section is in addition to and not subject to the limitations on the total number of
licenses that the Division Administration may issue under Title 36, Subtitle 4 of the
Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 of this Act.
(c) If an applicant for a license to operate as a cannabis grower that is a
recognized class member is not awarded a license under subsection (a) of this section:
(1) the applicant may apply for a license in accordance with the provisions
of Title 36 of the Alcoholic Beverages and Cannabis Article, as enacted by Section 4 5 of
this Act;
(2) the Division Administration shall allow the applicant to amend, if
necessary, and resubmit the applicant’s application or withdraw the application entirely;
and
(3) the Division Administration may waive the initial application fee for
the applicant but may charge the applicant a reasonable fee for the resubmission or an
unamended or amended application.
SECTION 13. 12. AND BE IT FURTHER ENACTED, That:
(a) As soon as practicable after the effective date of this Act, the Alcohol, Tobacco,
and Cannabis Commission Maryland Cannabis Administration shall contract with an
independent consultant to complete a study on wholesale cannabis licenses.
(b) The study shall include:
(1) the costs to regulate wholesale cannabis licenses;
(2) whether there is market necessity for wholesale cannabis licensing;
(3) whether there is a need for wholesale cannabis licensing to alleviate
supply demand and facilitate an equitable marketplace for suppliers and retailers; and
(4) the approximate number of wholesale cannabis licenses appropriate for
the size of the marketplace in the State.
(c) On or before June 1, 2024, the Alcohol, Tobacco, and Cannabis Commission
Maryland Cannabis Administration shall submit the results of the study required under
subsection (a) of this section to the Governor and, in accordance with § 2–1257 of the State
Government Article, the General Assembly.
Ch. 254 2023 LAWS OF MARYLAND
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SECTION 14. 13. AND BE IT FURTHER ENACTED, That:
(a) The Maryland Economic Development Corporation shall identify in each of
the following locations a site for proposed use as incubator space, to be established in
accordance with § 36–406 of the Alcoholic Beverages and Cannabis Article, as enacted by
Section 5 of this Act:
(1) Caroline County, Cecil County, Dorchester County, Kent County,
Queen Anne’s County, Somerset County, Talbot County, Wicomico County, or Worcester
County;
(2) Allegany County, Garrett County, or Washington County;
(3) Baltimore City or a beltway community located in Anne Arundel
County or Baltimore County; and
(4) a beltway community located in Montgomery County or Prince George’s
County.
(b) The site identifications shall include:
(1) the proposed locations for incubator spaces identified under subsection
(a) of this section;
(2) the square footage of the identified locations; and
(3) the estimated costs for construction or renovation of the proposed
location to prepare it for use as an incubator space.
(c) In evaluating sites for proposed use as incubator spaces, the Maryland
Economic Development Corporation shall consider, in addition to other appropriate
criteria, the suitability of converting to incubator space obsolete or underutilized
commercial and retail properties such as enclosed malls, big box stores, and warehouse
spaces.
(d) On or before January 1, 2024, the Maryland Economic Development
Corporation shall submit a report on the identified sites and the qualifying criteria required
by this section to the Governor and, in accordance with § 2–1257 of the State Government
Article, the General Assembly.
SECTION 15. 14. AND BE IT FURTHER ENACTED, That:
(a) As soon as practicable after the effective date of this Act, the Alcohol, Tobacco,
and Cannabis Commission Maryland Cannabis Administration shall conduct a study on
on–site consumption of cannabis and cannabis products at retail premises of cannabis
licensees. WES MOORE, Governor Ch. 254
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(b) The study shall include:
(1) a survey of regulations and trade practices for on–site consumption of
cannabis and cannabis products in other states and countries;
(2) authorizations and restrictions for the use of cannabis distributed at
cannabis premises and for the removal of unconsumed cannabis or cannabis products from
the premises;
(3) operational procedures and controls for on–site consumption premises
and the preparation, use, and consumption of cannabis and cannabis products;
(4) training requirements and safeguards for employees of premises with
on–site consumption of cannabis and cannabis products; and
(5) recommendations for policies to implement on–site consumption of
cannabis and cannabis products at suitable locations, including suggested legislative and
regulatory changes.
(c) The Commission Administration may contract with an independent
contractor to conduct the study under this section.
(d) On or before June 1, 2024, the Alcohol, Tobacco, and Cannabis Commission
Maryland Cannabis Administration shall submit the results of the study required under
subsection (a) of this section to the Governor and, in accordance with § 2–1257 of the State
Government Article, the General Assembly.
SECTION 16. AND BE IT FURTHER ENACTED, That:
(a) The Alcohol, Tobacco, and Cannabis Commission shall study:
(1) types of cannabis products and cannabis–infused products that are not
meant to be smoked and that are available in neighboring states and other jurisdictions,
such as low–concentration edibles, cannabis–infused soft drinks and other beverages, and
related products;
(2) issues relating to processing, packaging, labeling, and use of these
cannabis products as they may be introduced into the Maryland adult–use cannabis
regulatory system; and
(3) regulatory and enforcement issues that may arise from the introduction
and availability of these cannabis products in Maryland.
(b) On or before July 1, 2024, the Commission shall submit a report, including
any proposed legislative or regulatory changes, to the Governor and, in accordance with § Ch. 254 2023 LAWS OF MARYLAND
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2–1257 of the State Government Article, the Senate Finance Committee and the House
Economic Matters Committee.
SECTION 15. AND BE IT FURTHER ENACTED, That:
(a) This section applies only to a business awarded a grower license under § 9 of
Chapter 598 of the Acts of the General Assembly of 2018 that does not hold a cannabis
dispensary license.
(b) (1) A licensed grower subject to this section may apply to the Maryland
Cannabis Administration for and be awarded a standard dispensary license established
under § 36–401(c)(1)(iii) of the Alcoholic Beverages and Cannabis Article as enacted by
Section 5 of this Act.
(2) If the licensed grower meets the minimum qualifications as determined
by the Maryland Cannabis Administration for a standard dispensary license, the
Administration shall award the grower a standard dispensary license.
SECTION 16. AND BE IT FURTHER ENACTED, That, notwithstanding any other
provision of law, on or before June 30, 2024, the Governor may transfer to the Maryland
Cannabis Administration established under § 36–201 of the Alcoholic Beverages and
Cannabis Article, as enacted by Section 5 of this Act, any positions and the associated funds,
and any amount of the unexpended appropriation unde r the Alcohol and Tobacco
Commission – Administration and Enforcement (E17A01.01), Alcohol and Tobacco
Commission – Shared Services (E17A01.02), and Alcohol and Tobacco Commission –
Cannabis Regulatory and Enforcement Division (E17A01.03) that was included in the fiscal
year 2024 operating budget (House Bill 200 of the Acts of 2023).
SECTION 17. AND BE IT FURTHER ENACTED, That, as soon as practicable after
the effective date of this Act, the Alcohol, Tobacco, and Cannabis Commission and the
Maryland Cannabis Administration shall enter into a memorandum of understanding that
provides that both parties agree to collaborate in order to enforce the provisions of this Act
with respect to unlicensed cannabis operations in the State.
SECTION 18. AND BE IT FURTHER ENACTED, That notwithstanding §
1–309(c)(1) of the Alcoholic Beverages and Cannabis Article, as enacted by Section 5 of this
Act, an individual serving as the Executive Director of the Alcohol and Tobacco Commission
on the effective date of this Act may continue to serve as the Executive Director of the Alcohol,
Tobacco, and Cannabis Commission.
SECTION 12. 17. 19. AND BE IT FURTHER ENACTED, That the publisher of the
Annotated Code of Maryland, in consultation with and subject to the approval of the
Department of Legislative Services, shall correct, with no further action required by the
General Assembly, cross–references and terminology rendered incorrect by this Act. The
publisher shall adequately describe any correction that is made in an editor’s note following
the section affected. WES MOORE, Governor Ch. 254
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SECTION 13. 18. 20. AND BE IT FURTHER ENACTED, That this Act is an
emergency measure, is necessary for the immediate preservation of the public health or
safety, has been passed by a yea and nay vote supported by three–fifths of all the members
elected to each of the two Houses of the General Assembly, and shall take effect from the
date it is enacted.
Approved by the Governor, May 3, 2023.