EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0253*
HOUSE BILL 253
A3 EMERGENCY BILL 4lr4578
(PRE–FILED) CF 4lr4579
By: Chair, Economic Matters Committee (By Request – Maryland Cannabis
Administration)
Requested: October 19, 2023
Introduced and read first time: January 10, 2024
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Cannabis Reform – Alterations 2
FOR the purpose of altering the best practices that the Alcohol, Tobacco, and Cannabis 3
Commission is required to develop; making alterations and clarifications related to 4
the duties of the Commission, the Office of Social Equity, the Advisory Board on 5
Medical and Adult–Use Cannabis, and the Maryland Cannabis Administration; 6
altering the composition of the Advisory Board; requiring the Governor to appoint 7
the chair of the Advisory Board and removing the Director of the Administration as 8
chair; authorizing processors to provide cannabis to cannabis licensees; requiring the 9
Administration to register and regulate cannabis nurseries; authorizing the 10
Administration to impose certain penalties on a cannabis license or registration for 11
the violation of certain laws and regulations; requiring the Administration rather 12
than the Comptroller to administer the Cannabis Regulation and Enforcement Fund; 13
altering the amount of cannabis that a qualifying patient may possess; altering the 14
amount of cannabis that processors may process; altering certain provisions of law 15
related to the registration of cannabis agents; providing for the temporary 16
registration of cannabis agents; altering certain provisions of law related to 17
advertising and cannabis; authorizing the use of the Cannabis Business Assistance 18
Fund for the administrative costs of the Fund; extending the period of time that the 19
Administration is exempt from procurement requirements under certain 20
circumstances; and generally relating to medical and adult–use cannabis. 21
BY repealing and reenacting, without amendments, 22
Article – Alcoholic Beverages and Cannabis 23
Section 1–101(a), 36–101(a) and (h), and 36–206(b) 24
Annotated Code of Maryland 25
(2016 Volume and 2023 Supplement) 26
BY repealing and reenacting, with amendments, 27 2 HOUSE BILL 253
Article – Alcoholic Beverages and Cannabis 1
Section 1–101(d), 1–308(8) and (9), 1–309.1(d)(5) and (f)(2), 1–309.2, 36–101(j) and 2
(dd), 36–202, 36–206(d) and (j)(1), 36–302(g), 36–401(c)(1) and (2), 3
36–402(d)(1)(vi), 36–404(i)(3), 36–409(a), 36–501(a) and (d), 36–505, and 4
36–903(a) 5
Annotated Code of Maryland 6
(2016 Volume and 2023 Supplement) 7
BY repealing 8
Article – Alcoholic Beverages and Cannabis 9
Section 1–308(10) and (11) 10
Annotated Code of Maryland 11
(2016 Volume and 2023 Supplement) 12
BY adding to 13
Article – Alcoholic Beverages and Cannabis 14
Section 36–101(h–1) 15
Annotated Code of Maryland 16
(2016 Volume and 2023 Supplement) 17
BY repealing and reenacting, without amendments, 18
Article – Economic Development 19
Section 5–1901(b) 20
Annotated Code of Maryland 21
(2018 Replacement Volume and 2023 Supplement) 22
BY repealing and reenacting, with amendments, 23
Article – Economic Development 24
Section 5–1901(g)(1) 25
Annotated Code of Maryland 26
(2018 Replacement Volume and 2023 Supplement) 27
BY repealing and reenacting, with amendments, 28
Chapter 254 of the Acts of the General Assembly of 2023 29
Section 10 30
BY repealing and reenacting, with amendments, 31
Chapter 255 of the Acts of the General Assembly of 2023 32
Section 10 33
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 34
That the Laws of Maryland read as follows: 35
Article – Alcoholic Beverages and Cannabis 36
1–101. 37
HOUSE BILL 253 3
(a) In this article the following words have the meanings indicated. 1
(d) (1) “Cannabis” means the plant Cannabis sativa L. and any part of the 2
plant, including all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of 3
isomers, whether growing or not, with a delta–9–tetrahydrocannabinol concentration 4
greater than 0.3% on a dry weight basis. 5
(2) “Cannabis” includes cannabis products, SEEDS, SEEDLINGS, 6
IMMATURE PLANTS , AND CLONES. 7
(3) “Cannabis” does not include hemp or hemp products, as defined in § 8
14–101 of the Agriculture Article. 9
1–308. 10
The Commission shall develop best practices for: 11
(8) the development of a public health impact statement for all changes to 12
the State alcoholic beverages laws; AND 13
(9) ensuring that: 14
(i) all license holders, managers, and servers receive certification 15
from an approved alcohol awareness program; and 16
(ii) at least one employee who is certified in an alcohol awareness 17
program be on the licensed premises at all times when alcoholic beverages are served[; 18
(10) regulating the cannabis industry and implementing public health 19
measures relating to cannabis; and 20
(11) regulating, to the extent possible, medical and adult–use cannabis in a 21
similar manner]. 22
1–309.1. 23
(d) The Office of Social Equity shall: 24
(5) provide recommendations to the [Commission] MARYLAND 25
CANNABIS ADMINISTRATION on regulations related to: 26
(i) diversity; and 27
(ii) social equity applications; 28
4 HOUSE BILL 253
(f) (2) On or before December 15 each year, the Office of Social Equity shall 1
publish a review of the input received under paragraph (1) of this subsection on a publicly 2
accessible part of the [Commission’s] OFFICE’S website. 3
1–309.2. 4
(a) In this section, “Advisory Board” means the Advisory Board on Medical and 5
Adult–Use Cannabis. 6
(b) There is an Advisory Board on Medical and Adult–Use Cannabis. 7
(c) The Advisory Board shall: 8
(1) consider all matters submitted to it by the [Commission] OFFICE OF 9
SOCIAL EQUITY, the Governor, the Maryland Cannabis Administration, or the General 10
Assembly; and 11
(2) on its own initiative, provide recommendations to the [Commission] 12
OFFICE OF SOCIAL EQUITY or the Maryland Cannabis Administration established under 13
§ 36–201 of this article regarding guidelines, rules, and regulations that the Advisory Board 14
considers important or necessary for review and consideration by the [Commission] 15
OFFICE OF SOCIAL EQUITY or the Maryland Cannabis Administration. 16
(d) (1) The Advisory Board consists of[: 17
(1) the Director of the Maryland Cannabis Administration, who shall serve 18
as Chair of the Advisory Board; and 19
(2)] the following members, appointed by the Governor with the advice and 20
consent of the Senate: 21
(i) three members that have substantial experience in one or more 22
of the following: 23
1. cannabis law, science, or policy; 24
2. public health or health care; 25
3. agriculture; 26
4. finance; or 27
5. addiction treatment; 28
(ii) one academic researcher with at least 5 years of experience in 29
social or health equity; 30 HOUSE BILL 253 5
(iii) one representative of an independent testing laboratory 1
registered under § 36–408 of this article; 2
(iv) two representatives who hold a standard grower license under § 3
36–401 of this article; 4
(v) two representatives who hold a standard processor license under 5
§ 36–401 of this article; 6
(vi) two representatives who hold a standard dispensary license 7
under § 36–401 of this article; 8
(vii) two representatives who hold a micro grower license under § 9
36–401 of this article; 10
(viii) two representatives who hold a micro processor license under § 11
36–401 of this article; 12
(ix) two representatives who hold a micro dispensary license under § 13
36–401 of this article; 14
(x) one representative who holds an incubator space license under § 15
36–401 of this article; 16
(xi) one representative who holds an on–site consumption license 17
under § 36–401 of this article; 18
(xii) one representative of an organization that advocates on behalf of 19
patients who engage in the medical use of cannabis; 20
(xiii) one representative of an organization that advocates on behalf of 21
consumers who engage in the adult use of cannabis; and 22
(xiv) one health care provider who is registered to certify patients to 23
obtain medical cannabis under § 36–301 of this article. 24
(2) FROM AMONG THE MEMBER S OF THE ADVISORY BOARD, THE 25
GOVERNOR SHALL APPOIN T A CHAIR. 26
(e) The President of the Senate and the Speaker of the House may recommend to 27
the Governor a list of individuals for appointment to the Advisory Board. 28
(f) (1) The term of a member of the Advisory Board is 4 years. 29
(2) At the end of a term, a member continues to serve until a successor is 30
appointed and qualifies. 31 6 HOUSE BILL 253
(3) An appointed member may not serve more than two full terms. 1
(4) The positions for members appointed under subsection [(d)(2)(vii) 2
through (xi)] (D)(1)(VII) THROUGH (XI) of this section become effective when the first 3
licenses are issued under those respective license types. 4
(g) An appointed member of the Advisory Board must be: 5
(1) at least 25 years old; 6
(2) a resident of the State who has resided in the State for at least the 7
immediately preceding 5 years before the appointment; and 8
(3) a registered voter of the State. 9
(h) The Advisory Board shall establish at least two subcommittees to focus on 10
medical and adult–use cannabis. 11
(i) To the extent practicable and consistent with federal and State law, the 12
membership of the Advisory Board shall reflect the racial, ethnic, and gender diversity of 13
the State. 14
36–101. 15
(a) In this title the following words have the meanings indicated. 16
(h) “Cannabis licensee” means a business licensed by the Administration to 17
operate in the cannabis industry. 18
(H–1) “CANNABIS NURSERY ” MEANS A BUSINESS THAT PR OVIDES CANNABIS 19
SEEDS, SEEDLINGS, IMMATURE PLANTS , OR CLONES TO A CANNA BIS BUSINESS. 20
(j) “Cannabis registrant” means an independent testing laboratory, a 21
transporter, a security guard company, a waste disposal company, A CANNABIS NURS ERY, 22
and any other type of cannabis business registered under this title and authorized by the 23
Administration. 24
(dd) “Processor” means an entity licensed under this title that: 25
(1) transforms cannabis into another product or an extract and packages 26
and labels the cannabis product; and 27
(2) is authorized by the Administration to provide cannabis to [licensed 28
dispensaries] CANNABIS LICENSEES and registered independent testing laboratories. 29
HOUSE BILL 253 7
36–202. 1
(a) The Administration shall: 2
(1) develop and maintain a seed–to–sale tracking system that tracks 3
cannabis from either the seed or immature plant stage until the cannabis is sold to a 4
patient, caregiver, or consumer; 5
(2) conduct financial and criminal background investigations of any person 6
who submits an application for a cannabis license or a cannabis licensee, as required under 7
this title; 8
(3) develop a process for consumers and qualifying patients to purchase 9
clones and seeds, seedlings, stalks, roots, and stems of the cannabis plant for cultivation in 10
accordance with § 5–601.2 of the Criminal Law Article; 11
(4) solicit, evaluate, and issue or deny applications for cannabis licenses 12
and cannabis registrations, including: 13
(i) licenses to operate a cannabis business in accordance with this 14
title; and 15
(ii) registration for independent testing laboratories, transporters, 16
security guard companies, [and] waste disposal companies, AND CANNABIS NURSERI ES; 17
(5) award or deny: 18
(i) a license to operate a cannabis business in accordance with this 19
title; and 20
(ii) registration to independent testing laboratories, transporters, 21
security guard companies, waste disposal companies, CANNABIS NURSERIES , and any 22
other type of cannabis business authorized by the Administration; 23
(6) conduct announced and unannounced inspections of any business 24
licensed or registered under this title to ensure compliance with this title; 25
(7) after a determination that a violation of this title or a regulation 26
adopted under this title has occurred, suspend, fine, restrict, or revoke cannabis licenses 27
and cannabis registrations, whether active, expired, or surrendered, or impose any other 28
penalty authorized by this title or any regulation adopted under this title; 29
(8) (i) give notice and hold a hearing in accordance with Title 10, 30
Subtitle 2 of the State Government Article, for any: 31
1. contested cannabis license or registration denial; or 32
8 HOUSE BILL 253
2. violation of this title or any regulation adopted under this 1
title; 2
(ii) administer oaths in a proceeding under this section; and 3
(iii) subject to subsection (b)(3) of this section, allow the person 4
against whom the action is contemplated to be represented at the hearing by counsel; 5
(9) adopt regulations necessary to carry out its duties under this title; and 6
(10) perform any other power authorized or duty required under this title or 7
any other provision of State law. 8
(b) The Administration may: 9
(1) issue a subpoena for the attendance of a witness to testify or the 10
production of evidence in connection with: 11
(i) any disciplinary action under this title; or 12
(ii) any investigation or proceeding initiated for an alleged violation 13
of this title; 14
(2) delegate the hearing authority authorized under subsection (a)(8) of 15
this section to an employee within the Administration; [and] 16
(3) if, after due notice, the person against whom a disciplinary action is 17
contemplated does not appear at a hearing, hear and determine the matter; AND 18
(4) AFTER A HEARING UNDE R THIS SUBSECTION , FINE A CANNABIS 19
LICENSEE OR SUSPEND, RESTRICT, OR REVOKE A CANNABIS LICENSE OR A 20
CANNABIS REGISTRATIO N FOR A VIOLATION OF: 21
(I) THIS TITLE OR A REGU LATION ADOPTED UNDER THIS TITLE; 22
OR 23
(II) ANY OTHER STATE LAW OR REGULATIO N RELATED TO 24
CANNABIS OR THE OPER ATIONS OF A CANNABIS BUSINESS OR REGISTRANT . 25
36–206. 26
(b) There is a Cannabis Regulation and Enforcement Fund. 27
(d) The [Comptroller] ADMINISTRATION shall administer the Fund [at the 28
direction of the Administration]. 29
HOUSE BILL 253 9
(j) (1) On or before March 15 each year, the [Comptroller] ADMINISTRATION 1
shall publish on its website a detailed report on revenue distributed to and expenditures 2
from the Fund. 3
36–302. 4
(g) A qualifying patient may NOT possess [up to: 5
(1) 120 grams of usable cannabis; or 6
(2) 36 grams of delta–9–tetrahydrocannabinol (THC) in the case of a 7
cannabis–infused product] MORE THAN THE AMOUNT OF CANNABIS OR 8
CANNABIS–INFUSED PRODUCT THAT IS AUTHORIZED IN THE WRITTEN 9
CERTIFICATION OF THE PATIENT. 10
36–401. 11
(c) (1) A standard license authorizes the holder of the license: 12
(i) for growers, to operate more than 10,000 square feet, but not 13
more than 300,000 square feet, of indoor canopy or its equivalent, as calculated by the 14
Administration; 15
(ii) for processors, to process more than [1,000] 2,000 pounds of 16
cannabis per year, as calculated by the Administration; and 17
(iii) for dispensaries, to operate a store at a physical location that 18
sells cannabis or cannabis products. 19
(2) A micro license authorizes the holder of the license: 20
(i) for growers, to operate not more than 10,000 square feet of indoor 21
canopy or its equivalent, as calculated by the Administration; 22
(ii) for processors, to process not more than [1,000] 2,000 pounds of 23
cannabis per year, as calculated by the Administration; and 24
(iii) for dispensaries, to operate a delivery service that sells cannabis 25
or cannabis products without a physical storefront, provided that the licensee employs not 26
more than 10 employees. 27
36–402. 28
(d) (1) (vi) If the amount of square feet of production for a licensed grower 29
exceeds the canopy authorized under this section and § 36–401 of this subtitle, the 30
[Commission] ADMINISTRATION may: 31 10 HOUSE BILL 253
1. reduce the canopy of the licensed grower by the same 1
percentage as it exceeds the authorized canopy; and 2
2. seize, destroy, confiscate, or place an administrative hold 3
on any flowering cannabis plants produced in excess of the canopy. 4
36–404. 5
(i) (3) On or before 6 months after the issuance of a cannabis license under § 6
36–401 of this subtitle, the Governor’s Office of Small, Minority, and Women Business 7
Affairs, in consultation with the Office of the Attorney General and the Office of Social 8
Equity within the [Alcohol, Tobacco, and Cannabis Commission] ADMINISTRATION and 9
the cannabis licensee, shall establish a clear plan for setting reasonable and appropriate 10
minority business enterprise participation goals and procedures for the procurement of 11
goods and services related to cannabis, including the cultivation, manufacturing, and 12
dispensing of cannabis. 13
36–409. 14
(a) The following businesses shall register with the Administration in order to 15
provide services to a cannabis licensee: 16
(1) a transporter; 17
(2) a security guard agency; 18
(3) a waste disposal company; [and] 19
(4) A CANNABIS NURSERY ; AND 20
(5) any other type of cannabis business that is authorized by the 21
Administration to provide plant or product–touching services to cannabis licensees. 22
36–501. 23
(a) A cannabis agent [shall] MUST be registered with the Administration before 24
the agent may volunteer or work for a cannabis licensee or cannabis registrant. 25
(d) (1) The Administration may not register as a cannabis agent an individual 26
who[: 27
(1)] does not meet the criteria established under subsection (c) of this 28
section[; or]. 29
HOUSE BILL 253 11
(2) THE ADMINISTRATION MAY DI SQUALIFY AN INDIVIDU AL FROM 1
REGISTERING AS A CAN NABIS AGENT IF THE I NDIVIDUAL has been convicted of or 2
pleaded nolo contendere to a crime involving moral turpitude, whether or not any appeal 3
or other proceeding is pending to have the conviction or plea set aside. 4
36–505. 5
(a) In this section, “Central Repository” means the Criminal Justice Information 6
System Central Repository in the Department of Public Safety and Correctional Services. 7
(b) As part of an application to the Central Repository for a State and national 8
criminal history records check, an applicant shall submit to the Central Repository: 9
(1) two complete sets of legible fingerprints taken on forms approved by the 10
Director of the Central Repository and the Director of the Federal Bureau of Investigation; 11
(2) the fee authorized under § 10–221(b)(7) of the Criminal Procedure 12
Article for access to State criminal history records; and 13
(3) the processing fee required by the Federal Bureau of Investigation for 14
a national criminal history records check. 15
(c) In accordance with §§ 10–201 through 10–228 of the Criminal Procedure 16
Article, the Central Repository shall forward to the Administration and to the applicant 17
the applicant’s criminal history record information. 18
(d) If an applicant has made two or more unsuccessful attempts at securing 19
legible fingerprints, the Administration may accept an alternate method of a criminal 20
history records check as permitted by the Director of the Central Repository and the 21
Director of the Federal Bureau of Investigation. 22
(e) Information obtained from the Central Repository under this section shall be: 23
(1) confidential and may not be redisseminated; and 24
(2) used only for the purpose of registration under this title. 25
(f) (1) THE ADMINISTRATION MAY IS SUE A TEMPORARY CANNABIS 26
AGENT REGISTRATION I F: 27
(I) AN ALTERNATE METHOD OF A CRIMINAL HISTORY REC ORDS 28
CHECK, AS AUTHORIZED BY THE DIRECTOR OF THE CENTRAL REPOSITORY AND THE 29
DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION , IS USED; AND 30
(II) THE APPLICANT HAS SU BMITTED AN APPLICATI ON TO THE 31
CENTRAL REPOSITORY, AS REQUIRED IN SUBSECTI ON (B) OF THIS SECTION. 32 12 HOUSE BILL 253
(2) THE PERIOD OF A TEMPORARY CANNABIS A GENT REGISTRATION 1
ISSUED UNDER PARAGRAPH (1) OF THIS SUBSECTION M AY NOT EXCEED 60 2
CALENDAR DAYS . 3
(G) The subject of a criminal history records check under this section may contest 4
the criminal history record information disseminated by the Central Repository, as 5
provided in § 10–223 of the Criminal Procedure Article. 6
36–903. 7
(a) (1) [This subsection does not apply to an advertisement placed on property 8
owned or leased by a dispensary, grower, or processor. 9
(2)] An advertisement for a cannabis licensee, cannabis product, or 10
cannabis–related service may not: 11
(i) violate Title 13, Subtitle 3 of the Commercial Law Article; 12
(ii) directly or indirectly target individuals under the age of 21 years; 13
(iii) contain a design, an illustration, a picture, or a representation 14
that: 15
1. targets or is attractive to minors, including a cartoon 16
character, a mascot, or any other depiction that is commonly used to market products to 17
minors; 18
2. displays the use of cannabis, including the consumption, 19
smoking, or vaping of cannabis; 20
3. encourages or promotes cannabis for use as an intoxicant; 21
or 22
4. is obscene; 23
(iv) engage in advertising by means of television, radio, Internet, 24
mobile application, social media, or other electronic communication, EVENT 25
SPONSORSHIP , or print publication, unless at least 85% of the audience is reasonably 26
expected to be at least 21 years old as determined by reliable and current audience 27
composition data; or 28
(v) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS 29
SUBSECTION, engage in advertising by means of placing an advertisement on the side of a 30
building or another publicly visible location of any form, including a sign, a poster, a 31
placard, a device, a graphic display, an outdoor billboard, or a freestanding signboard. 32 HOUSE BILL 253 13
(2) A CANNABIS BUSINESS MAY PLACE EXTERIOR SIGNAGE ON THE 1
PREMISES OF THE BUSI NESS FOR THE LIMITED PURPOSE OF IDENTIFYING THE 2
BUSINESS TO THE PUBLIC. 3
Article – Economic Development 4
5–1901. 5
(b) There is a Cannabis Business Assistance Fund. 6
(g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only 7
for: 8
(i) grants or loans to small, minority–owned, or women–owned 9
businesses for: 10
1. license application assistance for participation in the 11
adult–use cannabis industry; 12
2. assistance with the operating or capital expenses of a 13
business participating in the adult–use cannabis industry; or 14
3. targeted training to support participation in the adult–use 15
cannabis industry; [and] 16
(ii) grants to historically black colleges and universities for 17
cannabis–related programs and business development organizations, including incubators, 18
to train and assist small, minority, and women business owners and entrepreneurs seeking 19
to become licensed to participate in the adult–use cannabis industry; AND 20
(III) THE ADMINISTRATIVE C OSTS OF THE FUND. 21
Chapter 254 of the Acts of 2023 22
SECTION 10. AND BE IT FURTHER ENACTED, That, notw ithstanding any other 23
provision of law, from the date this Act takes effect to December 31, [2023] 2024, both 24
inclusive, the Maryland Cannabis Administration is exempt from procurement 25
requirements under the State Finance and Procurement Article if the procurement is for: 26
(1) banking services for the Administration to collect fees and tax revenue; 27
(2) banking services to help support cannabis businesses to transition from 28
an all cash system; 29
14 HOUSE BILL 253
(3) a consultant to support the Administration in the process for cannabis 1
licensure, including services related to investigations and the financial or criminal history 2
review of applicants; 3
(4) a consultant to provide technical assistance to social equity applicants; 4
(5) communication services for public and consumer education campaigns 5
on cannabis laws and regulations and potential health and safety risks associated with 6
cannabis use; and 7
(6) establishing a State cannabis testing laboratory at a preexisting site. 8
Chapter 255 of the Acts of 2023 9
SECTION 10. AND BE IT FURTHER ENACTED, That, notwithstanding any other 10
provision of law, from the date this Act takes effect to December 31, [2023] 2024, both 11
inclusive, the Maryland Cannabis Administration is exempt from procurement 12
requirements under the State Finance and Procurement Article if the procurement is for: 13
(1) banking services for the Administration to collect fees and tax revenue; 14
(2) banking services to help support cannabis businesses to transition from 15
an all cash system; 16
(3) a consultant to support the Administration in the process for cannabis 17
licensure, including services related to investigations and the financial or criminal history 18
review of applicants; 19
(4) a consultant to provide technical assistance to social equity applicants; 20
(5) communication services for public and consumer education campaigns 21
on cannabis laws and regulations and potential health and safety risks associated with 22
cannabis use; and 23
(6) establishing a State cannabis testing laboratory at a preexisting site. 24
SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergency 25
measure, is necessary for the immediate preservation of the public health or safety, has 26
been passed by a yea and nay vote supported by three–fifths of all the members elected to 27
each of the two Houses of the General Assembly, and shall take effect from the date it is 28
enacted. 29