Maryland 2023 Regular Session

Maryland Senate Bill SB436 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	sb0436
6	6
7	7	SENATE BILL 436
8	8	J1 3lr1723
9	9
10	10	By: Senator Klausmeier
11	11	Introduced and read first time: February 2, 2023
12	12	Assigned to: Finance
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Medical Cannabis – Concurrent Grower and Processor Licenses 2
19	19
20	20	FOR the purpose of authorizing the Natalie M. LaPrade Medical Cannabis Commission to 3
21	21	award a certain number of medical cannabis grower and processor licenses that may 4
22	22	be held concurrently with certain other licenses issued by the Commission; requiring 5
23	23	the Commission to publish certain license application forms and review certain 6
24	24	license applications on or before certain dates; authorizing a licensed processor to 7
25	25	apply for licensure as a medical cannabis grower, subject to certain requirements; 8
26	26	authorizing a licensed grower to apply for licensure as a medical cannabis processor, 9
27	27	subject to certain requirements; and generally relating to grower and processor 10
28	28	licenses issued by the Natalie M. LaPrade Medical Cannabis Commission. 11
29	29
30	30	BY repealing and reenacting, without amendments, 12
31	31	Article – Health – General 13
32	32	Section 13–3301(a), (e), (j), and (n) 14
33	33	Annotated Code of Maryland 15
34	34	(2019 Replacement Volume and 2022 Supplement) 16
35	35
36	36	BY adding to 17
37	37	Article – Health – General 18
38	38	Section 13–3306.1 and 13–3309.1 19
39	39	Annotated Code of Maryland 20
40	40	(2019 Replacement Volume and 2022 Supplement) 21
41	41
42	42	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
43	43	That the Laws of Maryland read as follows: 23
44	44
45	45	Article – Health – General 24
46	46
47	47	13–3301. 25
48	48	2 SENATE BILL 436
49	49
50	50
51	51	(a) In this subtitle the following words have the meanings indicated. 1
52	52
53	53	(e) “Commission” means the Natalie M. LaPrade Medical Cannabis Commission 2
54	54	established under this subtitle. 3
55	55
56	56	(j) “Grower” means an entity licensed under this subtitle that: 4
57	57
58	58	(1) Cultivates or packages medical cannabis; and 5
59	59
60	60	(2) Is authorized by the Commission to provide cannabis to a processor, 6
61	61	dispensary, or independent testing laboratory. 7
62	62
63	63	(n) “Processor” means an entity that: 8
64	64
65	65	(1) Transforms medical cannabis into another product or extract; and 9
66	66
67	67	(2) Packages and labels medical cannabis. 10
68	68
69	69	13–3306.1. 11
70	70
71	71	(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION A ND 12
72	72	SUBSECTION (B) OF THIS SECTION, THE COMMISSION MAY AWARD THREE GROWER 13
73	73	LICENSES TO ENTITIES WITH EXISTING PROCESSOR LICENSES . 14
74	74
75	75	(2) THE GROWER LICENSES A WARDED UNDER PARAGRA PH (1) OF 15
76	76	THIS SUBSECTION ARE IN ADDITION TO THE N UMBER OF GROWER LICE NSES 16
77	77	AUTHORIZED UNDER § 13–3306 OF THIS SUBTITLE . 17
78	78
79	79	(B) ON OR BEFORE JULY 1, 2024, A LICENSED PROCESSOR MAY APPLY FOR 18
80	80	CONCURRENT LICENSURE AS A GROWER UNDER SUBSECTION (A) OF THIS SECTION 19
81	81	IF, AT THE TIME OF APPLI CATION, THE PROCESSOR : 20
82	82
83	83	(1) AFTER JANUARY 1, 2019: 21
84	84
85	85	(I) RECEIVED STAGE ONE PREAPPROVAL AS A PROCESSOR ; OR 22
86	86
87	87	(II) OBTAINED OWNERSHIP OF A PROCESSOR LICENSE AS A 23
88	88	PURCHASER OR TRANSFE REE OF THE LICENSE U NDER § 13–3311.1 OF THIS 24
89	89	SUBTITLE; 25
90	90
91	91	(2) HAS AN OPERATIONAL FACILITY THAT IS USED FOR THE 26
92	92	PROCESSING OF MEDICAL CANNABIS; 27
93	93	SENATE BILL 436 3
94	94
95	95
96	96	(3) DEMONSTRATES TO THE COMMISSION THROUGH A CERTIFIED 1
97	97	FINANCIAL STATEMENT THAT THE PROCESSOR H AS ADEQUATE CAPITAL TO 2
98	98	OPERATE AS A CONCURR ENTLY LICENSED PROCE SSOR AND GROWER ; 3
99	99
100	100	(4) PREVIOUSLY APPLIED FO R A GROWER LICENSE B EFORE JANUARY 4
101	101	1, 2022; AND 5
102	102
103	103	(5) SUBJECT TO SUBSECTION (C) OF THIS SECTION, MEETS ANY 6
104	104	OTHER MINIMUM STANDA RDS THAT ARE DETERMINED BY THE COMMISSION TO BE 7
105	105	NECESSARY FOR AN APPLICATION AS A CONCURRENTLY LICENSE D GROWER AND 8
106	106	PROCESSOR. 9
107	107
108	108	(C) THE MINIMUM STANDARDS ESTABLISHED BY THE COMMISSION FOR AN 10
109	109	APPLICATION UNDER SUBSECTION (B)(5) OF THIS SECTION MAY NOT EXCEED THE 11
110	110	GROWER APPLICATION S TANDARDS ESTABLISHED BY THE COMMISSION UNDER § 12
111	111	13–3306 OF THIS SUBTITLE. 13
112	112
113	113	(D) (1) ON OR BEFORE NOVEMBER 1, 2023, THE COMMISSION SHALL 14
114	114	PUBLISH THE APPLICAT ION FORM TO BE A CON CURRENTLY LICENSED PRO CESSOR 15
115	115	AND GROWER ON THE COMMISSION’S WEBSITE. 16
116	116
117	117	(2) THE COMMISSION SHALL APPROVE OR DENY APPLICATIONS 17
118	118	UNDER THIS SECTION W ITHIN 90 DAYS OF THE APPLICAT ION. 18
119	119
120	120	(E) (1) A CONCURRENTLY LICENSE D PROCESSOR AND GROW ER UNDER 19
121	121	THIS SECTION MAY NOT OPERATE A FACILITY F OR GROWING CANNABIS THAT 20
122	122	EXCEEDS 20,000 SQUARE FEET OF CANOPY SPACE , AS CALCULATED BY THE 21
123	123	COMMISSION IN ACCORDA NCE WITH PARAGRAPH (2) OF THIS SUBSECTION . 22
124	124
125	125	(2) THE CANOPY AREA SHALL BE MEASURED USING THE O UTSIDE 23
126	126	BOUNDARIES OF ANY AREA THAT INCLUDES F LOWERING CANNABIS PL ANTS AND ALL 24
127	127	OF THE SPACE WITHIN THE BOUNDARIES . 25
128	128
129	129	(F) A CONCURRENTLY LICENSE D PROCESSOR AND GROW ER MAY NOT SELL 26
130	130	OR TRANSFER OWNERSHI P OF A GROWER LICENS E AWARDED UNDER THIS SECTION 27
131	131	FOR AT LEAST 3 YEARS FOLLOWING THE AWARD OF THE GROWER LICENS E. 28
132	132
133	133	(G) A GROWER LICENSED UNDE R THIS SECTION IS SU BJECT TO THE 29
134	134	LICENSED GROWER REQU IREMENTS UNDER § 13–3306 OF THIS SUBTITLE. 30
135	135
136	136	13–3309.1. 31
137	137	4 SENATE BILL 436
138	138
139	139
140	140	(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION A ND 1
141	141	SUBSECTION (B) OF THIS SECTION, THE COMMISSION MAY AWARD TWO PROCESSOR 2
142	142	LICENSES TO ENTITIES WITH EXISTING GROWER LICENSES. 3
143	143
144	144	(2) THE PROCESSOR LICENSE S AWARDED UNDER PARA GRAPH (1) OF 4
145	145	THIS SUBSECTION ARE IN ADDITION TO THE NUMBE R OF PROCESSOR LICEN SES 5
146	146	AUTHORIZED UNDER § 13–3309 OF THIS SUBTITLE . 6
147	147
148	148	(B) ON OR BEFORE JULY 1, 2024, A LICENSED GROWER MA Y APPLY FOR 7
149	149	CONCURRENT LICENSURE AS A PROCESSOR UNDER SUBSECTION (A) OF THIS 8
150	150	SECTION IF, AT THE TIME OF APPLI CATION, THE GROWER : 9
151	151
152	152	(1) RECEIVED STAGE ONE PREAPPROVAL AS A GROWER AFTER 10
153	153	JANUARY 1, 2019; 11
154	154
155	155	(2) HAS AN OPERATIONAL FA CILITY THAT IS USED FOR THE GROWING 12
156	156	OF MEDICAL CANNABIS ; 13
157	157
158	158	(3) DEMONSTRATES TO THE COMMISSION THROUGH A CERTIFIED 14
159	159	FINANCIAL STATEMENT THAT THE GROWER HAS ADEQU ATE CAPITAL TO OPERA TE 15
160	160	AS A CONCURRENTLY LI CENSED GROWER AND PR OCESSOR; 16
161	161
162	162	(4) PREVIOUSLY APPLIED FO R A PROCESSOR LICENS E BEFORE 17
163	163	JANUARY 1, 2022; AND 18
164	164
165	165	(5) SUBJECT TO SUBSECTION (C) OF THIS SECTION , MEETS ANY 19
166	166	OTHER MINIMUM STANDA RDS THAT ARE DETERMINED BY THE COMMISSION TO BE 20
167	167	NECESSARY FOR AN APP LICATION AS A CONCUR RENTLY LICENSED PROC ESSOR AND 21
168	168	GROWER. 22
169	169
170	170	(C) THE MINIMUM STANDARDS ESTABLISHED BY THE COMMISSION FOR AN 23
171	171	APPLICATION UNDER SU BSECTION (B)(5) OF THIS SECTION MAY NOT EXCEED THE 24
172	172	PROCESSOR APPLICATIO N STANDARDS ESTABLIS HED BY THE COMMISSION UNDER 25
173	173	§ 13–3309 OF THIS SUBTITLE. 26
174	174
175	175	(D) (1) ON OR BEFORE NOVEMBER 1, 2023, THE COMMISSION SHALL 27
176	176	PUBLISH THE APPLICAT ION FORM TO BE A CON CURRENTLY LICENSED G ROWER AND 28
177	177	PROCESSOR ON THE COMMISSION’S WEBSITE. 29
178	178
179	179	(2) THE COMMISSION SHALL APPROVE OR DENY APPLICATIONS 30
180	180	UNDER THIS SECTION W ITHIN 90 DAYS OF THE APPLICAT ION. 31
181	181	SENATE BILL 436 5
182	182
183	183
184	184	(E) A CONCURRENTLY LICENSE D GROWER AND PROCESS OR MAY NOT SELL 1
185	185	OR TRANSFER OWNERSHI P OF A PROCESSOR LIC ENSE AWARDED UNDER THIS 2
186	186	SECTION FOR AT LEAST 3 YEARS FOLLOWING THE AWARD OF THE PROCESSOR 3
187	187	LICENSE. 4
188	188
189	189	(F) A PROCESSOR LICENSED U NDER THIS SECTION IS SUBJECT TO THE 5
190	190	LICENSED PROCESSOR R EQUIREMENTS UNDER § 13–3309 OF THIS SUBTITLE. 6
191	191
192	192	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
193	193	October 1, 2023. 8