EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Committee Report: Favorable with amendments
House action: Adopted
Read second time: February 29, 2024
CHAPTER ______
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; altering the membership of the Commission; 4
making alterations and clarifications related to the duties of the Commission, the 5
Office of Social Equity, the Advisory Board on Medical and Adult–Use Cannabis, and 6
the Maryland Cannabis Administration; altering the composition of the Advisory 7
Board; requiring the Governor to appoint the chair of the Advisory Board to elect a 8
chair and removing the Director of the Administration as chair; authorizing 9
processors to provide cannabis to cannabis licensees; requiring the Administration 10
to register and regulate cannabis nurseries; authorizing the Administration to 11
impose certain penalties on a cannabis license or registration for the violation of 12
certain laws and regulations; requiring the Administration rather than the 13
Comptroller to administer the Cannabis Regulation and Enforcement Fund; altering 14
the amount of cannabis that a qualifying patient may possess; altering the amount 15
of cannabis that processors may process; altering certain provisions of law related to 16
the registration of cannabis agents; providing for the temporary registration of 17
cannabis agents; altering certain provisions of law related to advertising and 18
cannabis; providing that certain violations may be charged by a citation; authorizing 19
the use of the Cannabis Business Assistance Fund for the administrative costs of the 20
Fund; authorizing the sharing of certain tax information with the Administration; 21
extending the period of time that the Administration is exempt from procurement 22 2 HOUSE BILL 253
requirements under certain circumstances; and generally relating to medical and 1
adult–use cannabis. 2
BY repealing and reenacting, without amendments, 3
Article – Alcoholic Beverages and Cannabis 4
Section 1–101(a), 1–322(a)(1) and (8), 36–101(a) and (h), and 36–206(b) 5
Annotated Code of Maryland 6
(2016 Volume and 2023 Supplement) 7
BY repealing and reenacting, with amendments, 8
Article – Alcoholic Beverages and Cannabis 9
Section 1–101(d), 1–202, 1–303(a)(1) and (3), 1–308(8) and (9), 1–309.1(d)(5) and 10
(f)(2), (e), and (f), 1–309.2, 1–322(a)(7) and (b)(2), 36–101(j), (aa), and (dd), 11
36–202, 36–206(d) and (j)(1), 36–302(g), 36–401(c)(1) and (2), (e), and (g), 12
36–402(d)(1)(vi) 36–402(b)(2)(i) and (d)(1)(vi), 36–404(i)(3), 36–407(a)(3) and 13
(b), 36–409(a), 36–501(a) and (d), 36–505, and 36–903(a), and 36–1102(e) and 14
(f) 15
Annotated Code of Maryland 16
(2016 Volume and 2023 Supplement) 17
BY repealing 18
Article – Alcoholic Beverages and Cannabis 19
Section 1–308(10) and (11) 20
Annotated Code of Maryland 21
(2016 Volume and 2023 Supplement) 22
BY adding to 23
Article – Alcoholic Beverages and Cannabis 24
Section 36–101(h–1) 25
Annotated Code of Maryland 26
(2016 Volume and 2023 Supplement) 27
BY repealing and reenacting, without amendments, 28
Article – Economic Development 29
Section 5–1901(b) 30
Annotated Code of Maryland 31
(2018 Replacement Volume and 2023 Supplement) 32
BY repealing and reenacting, with amendments, 33
Article – Economic Development 34
Section 5–1901(g)(1) 35
Annotated Code of Maryland 36
(2018 Replacement Volume and 2023 Supplement) 37
BY repealing and reenacting, with amendments, 38
Article – Tax – General 39
Section 10–208(bb)(1), 10–308(b)(6), and 13–203(c)(10), (14), and (15) 40 HOUSE BILL 253 3
Annotated Code of Maryland 1
(2022 Replacement Volume and 2023 Supplement) 2
BY adding to 3
Article – Tax – General 4
Section 13–203(c)(16) 5
Annotated Code of Maryland 6
(2022 Replacement Volume and 2023 Supplement) 7
BY repealing and reenacting, with amendments, 8
Chapter 254 of the Acts of the General Assembly of 2023 9
Section 10 10
BY repealing and reenacting, with amendments, 11
Chapter 255 of the Acts of the General Assembly of 2023 12
Section 10 13
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
That the Laws of Maryland read as follows: 15
Article – Alcoholic Beverages and Cannabis 16
1–101. 17
(a) In this article the following words have the meanings indicated. 18
(d) (1) “Cannabis” means the plant Cannabis sativa L. and any part of the 19
plant, including all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of 20
isomers, whether growing or not, with a delta–9–tetrahydrocannabinol concentration 21
greater than 0.3% on a dry weight basis. 22
(2) “Cannabis” includes cannabis pr oducts, SEEDS, SEEDLINGS, 23
IMMATURE PLANTS , AND CLONES . 24
(3) “Cannabis” does not include hemp or hemp products, as defined in § 25
14–101 of the Agriculture Article. 26
1–202. 27
(a) To the extent that a statement of a general rule of law conflicts or is 28
inconsistent with an exception or a qualification applicable to a special area, particular 29
person, or set of circumstances, the exception or qualification prevails. 30
(b) A provision in Division II of this article prevails over a conflicting or 31
inconsistent provision in Division I of this article or a provision in the Tax – General Article 32
relating to alcoholic beverages. 33
4 HOUSE BILL 253
(c) A provision in Division III of this article prevails over a conflicting or 1
inconsistent provision in Division I OR DIVISION II of this article or a provision in the Tax 2
– General Article relating to cannabis. 3
1–303. 4
(a) (1) The Commission consists of [seven] FIVE members to be appointed by 5
the Governor with the advice and consent of the Senate. 6
(3) Of the Commission members: 7
(i) one shall be knowledgeable and experienced in public health 8
matters; 9
(ii) one shall be knowledgeable and experienced in law enforcement 10
matters; 11
(iii) one shall be knowledgeable and experienced in the alcoholic 12
beverages industry; AND 13
(iv) [one shall have expertise in cannabis research and policy; 14
(v) one shall have expertise in alcohol and tobacco policy; and 15
(vi)] two shall be members of the public who are knowledgeable and 16
experienced in fiscal matters and shall have substantial experience: 17
1. as an executive with fiduciary responsibilities in charge of 18
a large organization or foundation; 19
2. in an academic field relating to finance or economics; or 20
3. as an accountant, an economist, or a financial analyst. 21
1–308. 22
The Commission shall develop best practices for: 23
(8) the development of a public health impact statement for all changes to 24
the State alcoholic beverages laws; AND 25
(9) ensuring that: 26
(i) all license holders, managers, and servers receive certification 27
from an approved alcohol awareness program; and 28
HOUSE BILL 253 5
(ii) at least one employee who is certified in an alcohol awareness 1
program be on the licensed premises at all times when alcoholic beverages are served[; 2
(10) regulating the cannabis industry and implementing public health 3
measures relating to cannabis; and 4
(11) regulating, to the extent possible, medical and adult–use cannabis in a 5
similar manner]. 6
1–309.1. 7
(d) The Office of Social Equity shall: 8
(5) provide recommendations to the [Commission] MARYLAND 9
CANNABIS ADMINISTRATION on regulations related to: 10
(i) diversity; and 11
(ii) social equity applications; 12
(e) (1) On or before March 1 each year, the Office of Social Equity shall produce 13
and make publicly available a report on how the funds in the Community Reinvestment 14
and Repair Fund under § 1–322 of this subtitle were allocated during the immediately 15
preceding calendar year. 16
(2) The report shall also be submitted to the General Assembly in 17
accordance with § 2–1257 of the State Government Article. 18
(3) THE OFFICE MAY REQUEST IN FORMATION FROM POLIT ICAL 19
SUBDIVISIONS AND ENT ITIES RECEIVING DIST RIBUTIONS FROM THE FUND TO 20
ASSIST WITH THE COMP LETION OF THE REPORT . 21
(f) (1) On or before November 1 [each year] EVERY 2 YEARS, BEGINNING IN 22
2024, the Office of Social Equity shall solicit public input on the uses of the funds in the 23
Community Reinvestment and Repair Fund under § 1–322 of this subtitle. 24
(f) (2) On or before December 15 each year EVERY 2 YEARS, BEGINNING IN 25
2024, the Office of Social Equity shall publish a review of the input received under 26
paragraph (1) of this subsection on a publicly accessible part of the [Commission’s] 27
OFFICE’S website. 28
(3) THE OFFICE SHALL INCLUDE IN THE REVIEW INFORMATION ON 29
HOW THE FUNDS RECEIV ED FROM THE FUND WERE SPENT DURIN G THE 30
IMMEDIATELY PRECEDIN G 2 CALENDAR YEARS . 31
1–309.2. 32 6 HOUSE BILL 253
(a) In this section, “Advisory Board” means the Advisory Board on Medical and 1
Adult–Use Cannabis. 2
(b) There is an Advisory Board on Medical and Adult–Use Cannabis. 3
(c) The Advisory Board shall: 4
(1) consider all matters submitted to it by the [Commission] OFFICE OF 5
SOCIAL EQUITY, the Governor, the Maryland Cannabis Administration, or the General 6
Assembly; and 7
(2) on its own initiative, provide recommendations to the [Commission] 8
OFFICE OF SOCIAL EQUITY or the Maryland Cannabis Administration established under 9
§ 36–201 of this article regarding guidelines, rules, and regulations that the Advisory Board 10
considers important or necessary for review and consideration by the [Commission] 11
OFFICE OF SOCIAL EQUITY or the Maryland Cannabis Administration. STUDY AND 12
MAKE RECOMMENDATIONS ON: 13
(I) THE IMPACT ON THE LE GAL MEDICAL AND ADUL T–USE 14
CANNABIS INDUSTRY IN THE STATE IF THE FEDERAL GOVERNME NT: 15
1. RESCHEDULES CANNABIS FROM SCHEDULE I TO 16
SCHEDULE III UNDER THE FEDERAL CONTROLLED SUBSTANCES ACT; OR 17
2. REMOVES CANNABIS FRO M THE LIST OF CONTRO LLED 18
SUBSTANCES UNDER THE FEDERAL CONTROLLED SUBSTANCES ACT; 19
(II) MEASURES TO PROTECT AND PROMOTE THE LEGAL 20
MEDICAL AND ADULT –USE CANNABIS INDUSTR Y IN THE STATE IF CANNABIS IS: 21
1. RESCHEDULED FROM SCHEDULE I TO SCHEDULE III; 22
OR 23
2. REMOVED FROM THE FED ERAL CONTROLLED 24
SUBSTANCES ACT; 25
(III) MEASURES TO ENABLE STANDARD AND MICRO C ANNABIS 26
LICENSEES AND SMALL BUSINESSES TO COMPET E IN INTERSTATE COMM ERCE 27
RELATED TO THE CULTI VATION, MANUFACTURE , DISTRIBUTION, AND TESTING OF 28
CANNABIS AND CANNABI S PRODUCTS; 29
(IV) METHODS TO ENSURE TH AT THERE IS AN ADEQU ATE 30
SUPPLY OF AFFORDABLE CANNABI S AND CANNABIS PRODU CTS FOR QUALIFYING 31 HOUSE BILL 253 7
PATIENTS, INCLUDING CANNABIS A ND CANNABIS PRODUCTS CONTAINING VARYING 1
LEVELS OF POTENCY ; AND 2
(V) METHODS TO ASSIST SO CIAL EQUITY APPLICAN TS, SOCIAL 3
EQUITY LICENSEES , AND SMALL, MINORITY, AND WOMEN–OWNED BUSINESSES TO : 4
1. ACCESS FUNDS FOR OPE RATING OR CAPITAL 5
EXPENSES ASSOCIATED WITH A BUSINESS PART ICIPATING IN THE MED ICAL AND 6
ADULT–USE CANNABIS INDUSTR Y; 7
2. OBTAIN FINANCING FRO M A LENDER, AS DEFINED IN § 8
36–1401 OF THIS ARTICLE; AND 9
3. PARTNER WITH OPERATI ONAL CANNABIS LICENS EES 10
IN WAYS THAT THE SOC IAL EQUITY APPLICANT S OR LICENSEES OR SM ALL, 11
MINORITY, OR WOMEN–OWNED BUSINESSES RET AIN OWNERSHIP AND CO NTROL OF 12
THE LICENSES AND BUS INESSES. 13
(d) (1) The Advisory Board consists of[: 14
(1) the Director of the Maryland Cannabis Administration, who shall serve 15
as Chair of the Advisory Board; and 16
(2)] the following members, appointed by the Governor with the advice and 17
consent of the Senate: 18
(i) three members that have substantial experience in one or more 19
of the following: 20
1. cannabis law, science, or policy; 21
2. public health or health care; 22
3. agriculture; 23
4. finance; or 24
5. addiction treatment; 25
(ii) one academic researcher with at least 5 years of experience in 26
social or health equity; 27
(iii) one representative of an independent testing laboratory 28
registered under § 36–408 of this article; 29
8 HOUSE BILL 253
(iv) two representatives who hold a standard grower license under § 1
36–401 of this article; 2
(v) two representatives who hold a standard processor license under 3
§ 36–401 of this article; 4
(vi) two representatives who hold a standard dispensary license 5
under § 36–401 of this article; 6
(vii) two representatives who hold a micro grower license under § 7
36–401 of this article; 8
(viii) two representatives who hold a micro processor license under § 9
36–401 of this article; 10
(ix) two representatives who hold a micro dispensary license under § 11
36–401 of this article; 12
(x) one representative who holds an incubator space license under § 13
36–401 of this article; 14
(xi) one representative who holds an on–site consumption license 15
under § 36–401 of this article; 16
(xii) one representative of an organization that advocates on behalf of 17
patients who engage in the medical use of cannabis; 18
(xiii) one representative of an organization that advocates on behalf of 19
consumers who engage in the adult use of cannabis; and 20
(xiv) one health care provider who is registered to certify patients to 21
obtain medical cannabis under § 36–301 of this article. 22
(2) FROM AMONG THE MEMBER S OF THE THE ADVISORY BOARD, THE 23
GOVERNOR SHALL APPOINT ELECT A CHAIR FROM AMONG ITS MEMBE RS. 24
(e) The President of the Senate and the Speaker of the House may recommend to 25
the Governor a list of individuals for appointment to the Advisory Board. 26
(f) (1) The term of a member of the Advisory Board is 4 years. 27
(2) At the end of a term, a member continues to serve until a successor is 28
appointed and qualifies. 29
(3) An appointed member may not serve more than two full terms. 30
HOUSE BILL 253 9
(4) The positions for members appointed under subsection [(d)(2)(vii) 1
through (xi)] (D)(1)(VII) THROUGH (XI) of this section become effective when the first 2
licenses are issued under those respective license types. 3
(g) An appointed member of the Advisory Board must be: 4
(1) at least 25 years old; 5
(2) a resident of the State who has resided in the State for at least the 6
immediately preceding 5 years before the appointment; and 7
(3) a registered voter of the State. 8
(h) The Advisory Board shall establish at least two subcommittees to focus on 9
medical and adult–use cannabis. 10
(i) To the extent practicable and consistent with federal and State law, the 11
membership of the Advisory Board shall reflect the racial, ethnic, and gender diversity of 12
the State. 13
(J) THE MARYLAND CANNABIS ADMINISTRATION SHALL PROVIDE STAFF 14
FOR THE ADVISORY BOARD. 15
1–322. 16
(a) (1) There is a Community Reinvestment and Repair Fund. 17
(7) (I) The State Treasurer shall invest the money of the Fund in the 18
same manner as other State money may be invested. 19
(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 20
CREDITED TO THE GENERAL FUND OF THE STATE. 21
(8) No part of the Fund may revert or be credited to: 22
(i) the General Fund of the State; or 23
(ii) any other special fund of the State. 24
(b) (2) [(i)] Subject to the limitations under subsection (a)(6) of this section, 25
each county shall adopt a law establishing the purpose for which money received from the 26
Fund may be used. 27
[(ii) On or before December 1 every 2 years, beginning in 2024, each 28
political subdivision that receives funds from the Fund under paragraph (1) of this 29
subsection shall submit a report to the Governor and, in accordance with § 2–1257 of the 30 10 HOUSE BILL 253
State Government Article, the Senate Budget and Taxation Committee and the House 1
Appropriations Committee on how funds received from the Fund were spent during the 2
immediately preceding 2 fiscal years.] 3
36–101. 4
(a) In this title the following words have the meanings indicated. 5
(h) “Cannabis licensee” means a business licensed by the Administration to 6
operate in the cannabis industry. 7
(H–1) “CANNABIS NURSERY ” MEANS A BUSINESS THA T PROVIDES CANNABIS 8
SEEDS, SEEDLINGS, IMMATURE PLANTS , OR CLONES TO A CANNA BIS BUSINESS. 9
(j) “Cannabis registrant” means an independent testing laboratory, a 10
transporter, a security guard company, a waste disposal company, A CANNABIS NURSERY , 11
and any other type of cannabis business registered under this title and authorized by the 12
Administration. 13
(aa) “Ownership interest” means a direct or indirect equity interest in a cannabis 14
licensee, including in its PROFITS, REVENUES, shares, or stock. 15
(dd) “Processor” means an entity licensed under this title that: 16
(1) transforms cannabis into another product or an extract and packages 17
and labels the cannabis product; and 18
(2) is authorized by the Administration to provide cannabis to [licensed 19
dispensaries] CANNABIS LICENSEES and registered independent testing laboratories. 20
36–202. 21
(a) The Administration shall: 22
(1) develop and maintain a seed–to–sale tracking system that tracks 23
cannabis from either the seed or immature plant stage until the cannabis is sold to a 24
patient, caregiver, or consumer; 25
(2) conduct financial and criminal background investigations of any person 26
who submits an application for a cannabis license or a cannabis licensee, as required under 27
this title; 28
(3) develop a process for consumers and qualifying patients to purchase 29
clones and seeds, seedlings, stalks, roots, and stems of the cannabis plant for cultivation in 30
accordance with § 5–601.2 of the Criminal Law Article; 31
HOUSE BILL 253 11
(4) solicit, evaluate, and issue or deny applications for cannabis licenses 1
and cannabis registrations, including: 2
(i) licenses to operate a cannabis business in accordance with this 3
title; and 4
(ii) registration for independent testing laboratories, transporters, 5
security guard companies, [and] waste disposal companies, AND CANNABIS NURSERI ES; 6
(5) award or deny: 7
(i) a license to operate a cannabis business in accordance with this 8
title; and 9
(ii) registration to independent testing laboratories, transporters, 10
security guard companies, waste disposal companies, CANNABIS NURSERIES , and any 11
other type of cannabis business authorized by the Administration; 12
(6) conduct announced and unannounced inspections of any business 13
licensed or registered under this title to ensure compliance with this title; 14
(7) after a determination that a violation of this title or a regulation 15
adopted under this title has occurred, suspend, fine, restrict, or revoke cannabis licenses 16
and cannabis registrations, whether active, expired, or surrendered, or impose any other 17
penalty authorized by this title or any regulation adopted under this title; 18
(8) (i) give notice and hold a hearing in accordance with Title 10, 19
Subtitle 2 of the State Government Article, for any: 20
1. contested cannabis license or registration denial; or 21
2. violation of this title or any regulation adopted under this 22
title; 23
(ii) administer oaths in a proceeding under this section; and 24
(iii) subject to subsection (b)(3) of this section, allow the person 25
against whom the action is contemplated to be represented at the hearing by counsel; 26
(9) adopt regulations necessary to carry out its duties under this title; and 27
(10) perform any other power authorized or duty required under this title or 28
any other provision of State law. 29
(b) The Administration may: 30
12 HOUSE BILL 253
(1) issue a subpoena for the attendance of a witness to testify or the 1
production of evidence in connection with: 2
(i) any disciplinary action under this title; or 3
(ii) any investigation or proceeding initiated for an alleged violation 4
of this title; 5
(2) delegate the hearing authority authorized under subsection (a)(8) of 6
this section to an employee within the Administration; [and] 7
(3) if, after due notice, the person against whom a disciplinary action is 8
contemplated does not appear at a hearing, hear and determine the matter; AND 9
(4) AFTER A HEARING UNDE R THIS SUBSECTION , FINE A CANNABIS 10
LICENSEE OR SUSPEND , RESTRICT, OR REVOKE A CANNABIS LICENSE OR A 11
CANNABIS REGISTRATIO N FOR A VIOLATION OF : 12
(I) THIS TITLE OR A REGU LATION ADOPTED UNDER THIS TITLE; 13
OR 14
(II) ANY OTHER STATE LAW OR REGULATI ON RELATED TO 15
CANNABIS OR THE OPER ATIONS OF A CANNABIS BUSINESS OR REGISTRA NT. 16
36–206. 17
(b) There is a Cannabis Regulation and Enforcement Fund. 18
(d) The [Comptroller] ADMINISTRATION shall administer the Fund [at the 19
direction of the Administration]. 20
(j) (1) On or before March 15 each year, the [Comptroller] ADMINISTRATION 21
shall publish on its website a detailed report on revenue distributed to and expenditures 22
from the Fund. 23
36–302. 24
(g) A qualifying patient may NOT possess [up to: 25
(1) 120 grams of usable cannabis; or 26
(2) 36 grams of delta–9–tetrahydrocannabinol (THC) in the case of a 27
cannabis–infused product] MORE THAN THE AMOUNT OF CANNABIS OR 28
CANNABIS–INFUSED PRODUCT THAT IS AUTHORIZED IN TH E WRITTEN 29
CERTIFICATION OF THE PATIENT. 30
HOUSE BILL 253 13
36–401. 1
(c) (1) A standard license authorizes the holder of the license: 2
(i) for growers, to operate more than 10,000 square feet, but not 3
more than 300,000 square feet, of indoor canopy or its equivalent, as calculated by the 4
Administration; 5
(ii) for processors, to process more than [1,000] 2,000 pounds of 6
cannabis per year, as calculated by the Administration; and 7
(iii) for dispensaries, to operate a store at a physical location that 8
sells cannabis or cannabis products. 9
(2) A micro license authorizes the holder of the license: 10
(i) for growers, to operate not more than 10,000 square feet of indoor 11
canopy or its equivalent, as calculated by the Administration; 12
(ii) for processors, to process not more than [1,000] 2,000 pounds of 13
cannabis per year, as calculated by the Administration; and 14
(iii) for dispensaries, to operate a delivery service that sells cannabis 15
or cannabis products without a physical storefront, provided that the licensee employs not 16
more than 10 employees. 17
(e) (1) This subsection applies to all licenses, including licenses converted 18
under subsection (b)(1)(ii) of this section. 19
(2) Subject to paragraph (3) of this subsection, a person may have an 20
ownership interest in or control of, including the power to manage and operate: 21
(i) for standard licenses and micro licenses: 22
1. one grower licensee; 23
2. one processor licensee; and 24
3. not more than four dispensary licensees; 25
(ii) for incubator space licenses, not more than two licensees; and 26
(iii) for on–site consumption licenses, not more than two licensees. 27
(3) (i) A person who owns or controls an incubator space licensee or an 28
on–site consumption licensee may not own or control any [other] cannabis licensee LISTED 29
UNDER PARAGRAPH (2)(I) OF THIS SUBSECTION . 30 14 HOUSE BILL 253
(ii) The Administration shall adopt regulations limiting a person or 1
fund from acquiring a nonmajority ownership interest in multiple cannabis businesses 2
beyond the limitations established under this subsection. 3
(4) The restrictions in paragraph (2) of this subsection do not apply to a 4
person or an entity who holds an ownership interest only as a passive investor. 5
(g) Notwithstanding any provisions of this title, the holder of a dispensary license 6
issued by the Natalie M. LaPrade Medical Cannabis Commission who converts the license 7
or a registrant with the Natalie M. LaPrade Medical Cannabis Commission may continue 8
to deliver medical cannabis until July 1, [2024] 2025. 9
36–402. 10
(b) (2) (i) Except as provided in subparagraph (ii) of this paragraph and 11
subject to subparagraph (iii) of this paragraph, on or before January 1, [2026] 2027, an 12
operational business that holds a grower license issued before December 31, 2022, may 13
expand the canopy of its operations as it existed on December 31, 2022, and based on facility 14
square footage of indoor canopy space or its equivalent, as calculated by the Administration 15
in accordance with subsection (d) of this section, only as follows: 16
1. if the canopy is under 25,000 square feet, to 25,000 square 17
feet or by 20%, whichever is greater; 18
2. if the canopy is at or above 25,000 square feet, by 20%; or 19
3. if the cannabis licensee has a square footage expansion 20
that was preapproved before December 31, 2022, the preapproved expansion or 20%, 21
whichever is greater. 22
(d) (1) (vi) If the amount of square feet of production for a licensed grower 23
exceeds the canopy authorized under this section and § 36–401 of this subtitle, the 24
[Commission] ADMINISTRATION may: 25
1. reduce the canopy of the licensed grower by the same 26
percentage as it exceeds the authorized canopy; and 27
2. seize, destroy, confiscate, or place an administrative hold 28
on any flowering cannabis plants produced in excess of the canopy. 29
36–404. 30
(i) (3) On or before 6 months after the issuance of a cannabis license under § 31
36–401 of this subtitle, the Governor’s Office of Small, Minority, and Women Business 32
Affairs, in consultation with the Office of the Attorney General and the Office of Social 33
Equity within the [Alcohol, Tobacco, and Cannabis Commission] ADMINISTRATION and 34 HOUSE BILL 253 15
the cannabis licensee, shall establish a clear plan for setting reasonable and appropriate 1
minority business enterprise participation goals and procedures for the procurement of 2
goods and services related to cannabis, including the cultivation, manufacturing, and 3
dispensing of cannabis. 4
36–407. 5
(a) (3) An on–site consumption establishment may operate only if the [county 6
and, if applicable, the municipality,] POLITICAL SUBDIVISIO N where the business is 7
located [have] HAS issued a permit or license that expressly allows the operation of the 8
on–site consumption establishment. 9
(b) Subject to the limitations in § 36–405 of this subtitle, a [county and, if 10
applicable, a municipality] POLITICAL SUBDIVISIO N may: 11
(1) prohibit the operation of on–site consumption establishments; 12
(2) prohibit or restrict the smoking or vaping of cannabis at on–site 13
consumption establishments; or 14
(3) adopt zoning and planning requirements for on–site consumption 15
establishments. 16
36–409. 17
(a) The following businesses shall register with the Administration in order to 18
provide services to a cannabis licensee: 19
(1) a transporter; 20
(2) a security guard agency; 21
(3) a waste disposal company; [and] 22
(4) A CANNABIS NURSERY ; AND 23
(5) any other type of cannabis business that is authorized by the 24
Administration to provide plant or product–touching services to cannabis licensees. 25
36–501. 26
(a) A cannabis agent [shall] MUST be registered with the Administration before 27
the agent may volunteer or work for a cannabis licensee or cannabis registrant. 28
(d) (1) The Administration may not register as a cannabis agent an individual 29
who[: 30 16 HOUSE BILL 253
(1)] does not meet the criteria established under subsection (c) of this 1
section[; or]. 2
(2) THE ADMINISTRATION MAY DI SQUALIFY AN INDIVIDU AL FROM 3
REGISTERING AS A CAN NABIS AGENT IF THE I NDIVIDUAL has been convicted of or 4
pleaded nolo contendere to a crime involving moral turpitude, whether or not any appeal 5
or other proceeding is pending to have the conviction or plea set aside. 6
36–505. 7
(a) In this section, “Central Repository” means the Criminal Justice Information 8
System Central Repository in the Department of Public Safety and Correctional Services. 9
(b) As part of an application to the Central Repository for a State and national 10
criminal history records check, an applicant shall submit to the Central Repository: 11
(1) two complete sets of legible fingerprints taken on forms approved by the 12
Director of the Central Repository and the Director of the Federal Bureau of Investigation; 13
(2) the fee authorized under § 10–221(b)(7) of the Criminal Procedure 14
Article for access to State criminal history records; and 15
(3) the processing fee required by the Federal Bureau of Investigation for 16
a national criminal history records check. 17
(c) In accordance with §§ 10–201 through 10–228 of the Criminal Procedure 18
Article, the Central Repository shall forward to the Administration and to the applicant 19
the applicant’s criminal history record information. 20
(d) If an applicant has made two or more unsuccessful attempts at securing 21
legible fingerprints, the Administration may accept an alternate method of a criminal 22
history records check as permitted by the Director of the Central Repository and the 23
Director of the Federal Bureau of Investigation. 24
(e) Information obtained from the Central Repository under this section shall be: 25
(1) confidential and may not be redisseminated; and 26
(2) used only for the purpose of registration under this title. 27
(f) (1) THE ADMINISTRATION MAY IS SUE A TEMPORARY CANN ABIS 28
AGENT REGISTRATION I F: 29
HOUSE BILL 253 17
(I) AN ALTERNATE METHOD OF A CRIMINAL HISTOR Y RECORDS 1
CHECK, AS AUTHORIZED BY THE DIRECTOR OF THE CENTRAL REPOSITORY AND THE 2
DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION , IS USED; AND 3
(II) THE APPLICANT HAS SU BMITTED AN APPLICATI ON TO THE 4
CENTRAL REPOSITORY, AS REQUIRED IN SUBSE CTION (B) OF THIS SECTION. 5
(2) THE PERIOD OF A TEMPO RARY CANNABIS AGENT REGISTRATION 6
ISSUED UNDER PARAGRA PH (1) OF THIS SUBSECTION M AY NOT EXCEED 60 7
CALENDAR DAYS . 8
(G) The subject of a criminal history records check under this section may contest 9
the criminal history record information disseminated by the Central Repository, as 10
provided in § 10–223 of the Criminal Procedure Article. 11
36–903. 12
(a) (1) [This subsection does not apply to an advertisement placed on property 13
owned or leased by a dispensary, grower, or processor. 14
(2)] An advertisement for a cannabis licensee, cannabis product, or 15
cannabis–related service may not: 16
(i) violate Title 13, Subtitle 3 of the Commercial Law Article; 17
(ii) directly or indirectly target individuals under the age of 21 years; 18
(iii) contain a design, an illustration, a picture, or a representation 19
that: 20
1. targets or is attractive to minors, including a cartoon 21
character, a mascot, or any other depiction that is commonly used to market products to 22
minors; 23
2. displays the use of cannabis, including the consumption, 24
smoking, or vaping of cannabis; 25
3. encourages or promotes cannabis for use as an intoxicant; 26
or 27
4. is obscene; 28
(iv) engage in advertising by means of television, radio, Internet, 29
mobile application, social media, or other electronic communication , EVENT 30
SPONSORSHIP , or print publication, unless at least 85% of the audience is reasonably 31 18 HOUSE BILL 253
expected to be at least 21 years old as determined by reliable and current audience 1
composition data; or 2
(v) EXCEPT AS PROVIDED I N PARAGRAPH (2) OF THIS 3
SUBSECTION, engage in advertising by means of placing an advertisement on the side of a 4
building or another publicly visible location of any form, including a sign, a poster, a 5
placard, a device, a graphic display, an outdoor billboard, or a freestanding signboard. 6
(2) A CANNABIS BUSINESS MA Y PLACE EXTERIOR SIG NAGE ON THE 7
PREMISES OF THE BUSI NESS FOR THE LIMITED PURPOSE OF IDENTIFYI NG THE 8
BUSINESS TO THE PUBL IC. 9
36–1102. 10
(e) A person who violates subsection (b) of this section: 11
(1) MAY BE CHARGED BY A CITATION; AND 12
(2) is guilty of a misdemeanor and on conviction is subject to a fine not 13
exceeding $5,000. 14
(f) A person who violates subsection (c) of this section: 15
(1) MAY BE CHARGED BY A CITATION; AND 16
(2) is guilty of a misdemeanor and on conviction is subject to a fine not 17
exceeding $10,000. 18
Article – Economic Development 19
5–1901. 20
(b) There is a Cannabis Business Assistance Fund. 21
(g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only 22
for: 23
(i) grants or loans to small, minority–owned, or women–owned 24
businesses for: 25
1. license application assistance for participation in the 26
adult–use cannabis industry; 27
2. assistance with the operating or capital expenses of a 28
business participating in the adult–use cannabis industry; or 29
HOUSE BILL 253 19
3. targeted training to support participation in the adult–use 1
cannabis industry; [and] 2
(ii) grants to historically black colleges and universities for 3
cannabis–related programs and business development organizations, including incubators, 4
to train and assist small, minority, and women business owners and entrepreneurs seeking 5
to become licensed to participate in the adult–use cannabis industry; AND 6
(III) THE ADMINISTRATIVE C OSTS OF THE FUND. 7
Article – Tax – General 8
10–208. 9
(bb) (1) The subtraction under subsection (a) of this section includes the amount 10
of ordinary and necessary expenses paid or incurred during the taxable year in carrying on 11
a trade or a business as a [medical] cannabis grower, processor, dispensary, or any other 12
cannabis establishment licensed OR REGISTERED by the State, if the deduction for 13
ordinary and necessary expenses is disallowed under § 280E of the Internal Revenue Code. 14
10–308. 15
(b) The subtraction under subsection (a) of this section includes the amounts 16
allowed to be subtracted for an individual under: 17
(6) § 10–208(bb) of this title (Trade or business expenses of [medical] A 18
LICENSED OR REGISTER ED cannabis grower, processor, dispensary, or any other 19
cannabis establishment). 20
13–203. 21
(c) Tax information may be disclosed to: 22
(10) the Alcohol [and], Tobacco, AND CANNABIS Commission; 23
(14) a hospital, the Health Services Cost Review Commission, the 24
Department of Human Services, the Maryland Department of Health, and the State 25
Department of Education, to the extent necessary to administer § 19–214.4 of the Health – 26
General Article; [and] 27
(15) subject to subsection (e) of this section, the Maryland Small Business 28
Retirement Savings Board and its authorized contractors for the purpose of administering 29
the Maryland Small Business Retirement Savings Program and Trust as authorized under 30
Title 12 of the Labor and Employment Article; AND 31
(16) THE MARYLAND CANNABIS ADMINISTRATION . 32 20 HOUSE BILL 253
Chapter 254 of the Acts of 2023 1
SECTION 10. AND BE IT FURTHER ENACTED, That, notwithstanding any other 2
provision of law, from the date this Act takes effect to December 31, [2023] 2024, both 3
inclusive, the Maryland Cannabis Administration is exempt from procurement 4
requirements under the State Finance and Procurement Article if the procurement is for: 5
(1) banking services for the Administration to collect fees and tax revenue; 6
(2) banking services to help support cannabis businesses to transition from 7
an all cash system; 8
(3) a consultant to support the Administration in the process for cannabis 9
licensure, including services related to investigations and the financial or criminal history 10
review of applicants; 11
(4) a consultant to provide technical assistance to social equity applicants; 12
(5) communication services for public and consumer education campaigns 13
on cannabis laws and regulations and potential health and safety risks associated with 14
cannabis use; and 15
(6) establishing a State cannabis testing laboratory at a preexisting site. 16
Chapter 255 of the Acts of 2023 17
SECTION 10. AND BE IT FURTHER ENACTED, That, notwithstanding any other 18
provision of law, from the date this Act takes effect to December 31, [2023] 2024, both 19
inclusive, the Maryland Cannabis Administration is exempt from procurement 20
requirements under the State Finance and Procurement Article if the procurement is for: 21
(1) banking services for the Administration to collect fees and tax revenue; 22
(2) banking services to help support cannabis businesses to transition from 23
an all cash system; 24
(3) a consultant to support the Administration in the process for cannabis 25
licensure, including services related to investigations and the financial or criminal history 26
review of applicants; 27
(4) a consultant to provide technical assistance to social equity applicants; 28
(5) communication services for public and consumer education campaigns 29
on cannabis laws and regulations and potential health and safety risks associated with 30
cannabis use; and 31
HOUSE BILL 253 21
(6) establishing a State cannabis testing laboratory at a preexisting site. 1
SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergency 2
measure, is necessary for the immediate preservation of the public health or safety, has 3
been passed by a yea and nay vote supported by three–fifths of all the members elected to 4
each of the two Houses of the General Assembly, and shall take effect from the date it is 5
enacted. 6
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.