EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0436*
SENATE BILL 436
J1 3lr1723
By: Senator Klausmeier
Introduced and read first time: February 2, 2023
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Medical Cannabis – Concurrent Grower and Processor Licenses 2
FOR the purpose of authorizing the Natalie M. LaPrade Medical Cannabis Commission to 3
award a certain number of medical cannabis grower and processor licenses that may 4
be held concurrently with certain other licenses issued by the Commission; requiring 5
the Commission to publish certain license application forms and review certain 6
license applications on or before certain dates; authorizing a licensed processor to 7
apply for licensure as a medical cannabis grower, subject to certain requirements; 8
authorizing a licensed grower to apply for licensure as a medical cannabis processor, 9
subject to certain requirements; and generally relating to grower and processor 10
licenses issued by the Natalie M. LaPrade Medical Cannabis Commission. 11
BY repealing and reenacting, without amendments, 12
Article – Health – General 13
Section 13–3301(a), (e), (j), and (n) 14
Annotated Code of Maryland 15
(2019 Replacement Volume and 2022 Supplement) 16
BY adding to 17
Article – Health – General 18
Section 13–3306.1 and 13–3309.1 19
Annotated Code of Maryland 20
(2019 Replacement Volume and 2022 Supplement) 21
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
That the Laws of Maryland read as follows: 23
Article – Health – General 24
13–3301. 25
2 SENATE BILL 436
(a) In this subtitle the following words have the meanings indicated. 1
(e) “Commission” means the Natalie M. LaPrade Medical Cannabis Commission 2
established under this subtitle. 3
(j) “Grower” means an entity licensed under this subtitle that: 4
(1) Cultivates or packages medical cannabis; and 5
(2) Is authorized by the Commission to provide cannabis to a processor, 6
dispensary, or independent testing laboratory. 7
(n) “Processor” means an entity that: 8
(1) Transforms medical cannabis into another product or extract; and 9
(2) Packages and labels medical cannabis. 10
13–3306.1. 11
(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION A ND 12
SUBSECTION (B) OF THIS SECTION, THE COMMISSION MAY AWARD THREE GROWER 13
LICENSES TO ENTITIES WITH EXISTING PROCESSOR LICENSES . 14
(2) THE GROWER LICENSES A WARDED UNDER PARAGRA PH (1) OF 15
THIS SUBSECTION ARE IN ADDITION TO THE N UMBER OF GROWER LICE NSES 16
AUTHORIZED UNDER § 13–3306 OF THIS SUBTITLE . 17
(B) ON OR BEFORE JULY 1, 2024, A LICENSED PROCESSOR MAY APPLY FOR 18
CONCURRENT LICENSURE AS A GROWER UNDER SUBSECTION (A) OF THIS SECTION 19
IF, AT THE TIME OF APPLI CATION, THE PROCESSOR : 20
(1) AFTER JANUARY 1, 2019: 21
(I) RECEIVED STAGE ONE PREAPPROVAL AS A PROCESSOR ; OR 22
(II) OBTAINED OWNERSHIP OF A PROCESSOR LICENSE AS A 23
PURCHASER OR TRANSFE REE OF THE LICENSE U NDER § 13–3311.1 OF THIS 24
SUBTITLE; 25
(2) HAS AN OPERATIONAL FACILITY THAT IS USED FOR THE 26
PROCESSING OF MEDICAL CANNABIS; 27
SENATE BILL 436 3
(3) DEMONSTRATES TO THE COMMISSION THROUGH A CERTIFIED 1
FINANCIAL STATEMENT THAT THE PROCESSOR H AS ADEQUATE CAPITAL TO 2
OPERATE AS A CONCURR ENTLY LICENSED PROCE SSOR AND GROWER ; 3
(4) PREVIOUSLY APPLIED FO R A GROWER LICENSE B EFORE JANUARY 4
1, 2022; AND 5
(5) SUBJECT TO SUBSECTION (C) OF THIS SECTION, MEETS ANY 6
OTHER MINIMUM STANDA RDS THAT ARE DETERMINED BY THE COMMISSION TO BE 7
NECESSARY FOR AN APPLICATION AS A CONCURRENTLY LICENSE D GROWER AND 8
PROCESSOR. 9
(C) THE MINIMUM STANDARDS ESTABLISHED BY THE COMMISSION FOR AN 10
APPLICATION UNDER SUBSECTION (B)(5) OF THIS SECTION MAY NOT EXCEED THE 11
GROWER APPLICATION S TANDARDS ESTABLISHED BY THE COMMISSION UNDER § 12
13–3306 OF THIS SUBTITLE. 13
(D) (1) ON OR BEFORE NOVEMBER 1, 2023, THE COMMISSION SHALL 14
PUBLISH THE APPLICAT ION FORM TO BE A CON CURRENTLY LICENSED PRO CESSOR 15
AND GROWER ON THE COMMISSION’S WEBSITE. 16
(2) THE COMMISSION SHALL APPROVE OR DENY APPLICATIONS 17
UNDER THIS SECTION W ITHIN 90 DAYS OF THE APPLICAT ION. 18
(E) (1) A CONCURRENTLY LICENSE D PROCESSOR AND GROW ER UNDER 19
THIS SECTION MAY NOT OPERATE A FACILITY F OR GROWING CANNABIS THAT 20
EXCEEDS 20,000 SQUARE FEET OF CANOPY SPACE , AS CALCULATED BY THE 21
COMMISSION IN ACCORDA NCE WITH PARAGRAPH (2) OF THIS SUBSECTION . 22
(2) THE CANOPY AREA SHALL BE MEASURED USING THE O UTSIDE 23
BOUNDARIES OF ANY AREA THAT INCLUDES F LOWERING CANNABIS PL ANTS AND ALL 24
OF THE SPACE WITHIN THE BOUNDARIES . 25
(F) A CONCURRENTLY LICENSE D PROCESSOR AND GROW ER MAY NOT SELL 26
OR TRANSFER OWNERSHI P OF A GROWER LICENS E AWARDED UNDER THIS SECTION 27
FOR AT LEAST 3 YEARS FOLLOWING THE AWARD OF THE GROWER LICENS E. 28
(G) A GROWER LICENSED UNDE R THIS SECTION IS SU BJECT TO THE 29
LICENSED GROWER REQU IREMENTS UNDER § 13–3306 OF THIS SUBTITLE. 30
13–3309.1. 31
4 SENATE BILL 436
(A) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION A ND 1
SUBSECTION (B) OF THIS SECTION, THE COMMISSION MAY AWARD TWO PROCESSOR 2
LICENSES TO ENTITIES WITH EXISTING GROWER LICENSES. 3
(2) THE PROCESSOR LICENSE S AWARDED UNDER PARA GRAPH (1) OF 4
THIS SUBSECTION ARE IN ADDITION TO THE NUMBE R OF PROCESSOR LICEN SES 5
AUTHORIZED UNDER § 13–3309 OF THIS SUBTITLE . 6
(B) ON OR BEFORE JULY 1, 2024, A LICENSED GROWER MA Y APPLY FOR 7
CONCURRENT LICENSURE AS A PROCESSOR UNDER SUBSECTION (A) OF THIS 8
SECTION IF, AT THE TIME OF APPLI CATION, THE GROWER : 9
(1) RECEIVED STAGE ONE PREAPPROVAL AS A GROWER AFTER 10
JANUARY 1, 2019; 11
(2) HAS AN OPERATIONAL FA CILITY THAT IS USED FOR THE GROWING 12
OF MEDICAL CANNABIS ; 13
(3) DEMONSTRATES TO THE COMMISSION THROUGH A CERTIFIED 14
FINANCIAL STATEMENT THAT THE GROWER HAS ADEQU ATE CAPITAL TO OPERA TE 15
AS A CONCURRENTLY LI CENSED GROWER AND PR OCESSOR; 16
(4) PREVIOUSLY APPLIED FO R A PROCESSOR LICENS E BEFORE 17
JANUARY 1, 2022; AND 18
(5) SUBJECT TO SUBSECTION (C) OF THIS SECTION , MEETS ANY 19
OTHER MINIMUM STANDA RDS THAT ARE DETERMINED BY THE COMMISSION TO BE 20
NECESSARY FOR AN APP LICATION AS A CONCUR RENTLY LICENSED PROC ESSOR AND 21
GROWER. 22
(C) THE MINIMUM STANDARDS ESTABLISHED BY THE COMMISSION FOR AN 23
APPLICATION UNDER SU BSECTION (B)(5) OF THIS SECTION MAY NOT EXCEED THE 24
PROCESSOR APPLICATIO N STANDARDS ESTABLIS HED BY THE COMMISSION UNDER 25
§ 13–3309 OF THIS SUBTITLE. 26
(D) (1) ON OR BEFORE NOVEMBER 1, 2023, THE COMMISSION SHALL 27
PUBLISH THE APPLICAT ION FORM TO BE A CON CURRENTLY LICENSED G ROWER AND 28
PROCESSOR ON THE COMMISSION’S WEBSITE. 29
(2) THE COMMISSION SHALL APPROVE OR DENY APPLICATIONS 30
UNDER THIS SECTION W ITHIN 90 DAYS OF THE APPLICAT ION. 31
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(E) A CONCURRENTLY LICENSE D GROWER AND PROCESS OR MAY NOT SELL 1
OR TRANSFER OWNERSHI P OF A PROCESSOR LIC ENSE AWARDED UNDER THIS 2
SECTION FOR AT LEAST 3 YEARS FOLLOWING THE AWARD OF THE PROCESSOR 3
LICENSE. 4
(F) A PROCESSOR LICENSED U NDER THIS SECTION IS SUBJECT TO THE 5
LICENSED PROCESSOR R EQUIREMENTS UNDER § 13–3309 OF THIS SUBTITLE. 6
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 7
October 1, 2023. 8