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.
Italics indicate opposite chamber/conference committee amendments.
*hb0253*
HOUSE BILL 253
A3 EMERGENCY BILL (4lr4578)
ENROLLED BILL
— Economic Matters/Finance —
Introduced by Chair, Economic Matters Committee (By Request – Maryland
Cannabis Administration)
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his app roval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
Speaker.
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 2 HOUSE BILL 253
the amount of cannabis that a qualifying patient may possess; altering the amount 1
of cannabis that processors may process; altering certain provisions of law related to 2
the registration of cannabis agents; providing for the temporary registration of 3
cannabis agents; altering certain provisions of law related to advertising and 4
cannabis; providing that certain violations may be charged by a citation; authorizing 5
the use of the Cannabis Business Assistance Fund for the administrative costs of the 6
Fund; authorizing the sharing of certain tax information with the Administration; 7
extending the period of time that the Administration is exempt from procurement 8
requirements under certain circumstances; and generally relating to medical and 9
adult–use cannabis. 10
BY repealing and reenacting, without amendments, 11
Article – Alcoholic Beverages and Cannabis 12
Section 1–101(a), 1–322(a)(1) and (8), 36–101(a) and (h), and 36–206(b) 13
Annotated Code of Maryland 14
(2016 Volume and 2023 Supplement) 15
BY repealing and reenacting, with amendments, 16
Article – Alcoholic Beverages and Cannabis 17
Section 1–101(d), 1–202, 1–303(a)(1) and (3), 1–308(8) and (9), 1–309.1(d)(5) and 18
(f)(2), (e), and (f), 1–309.2, 1–322(a)(7) and (b)(2), 36–101(j), (aa), and (dd), 19
36–202, 36–206(d) and (j)(1), 36–302(g), 36–401(c)(1) and (2), (e), and (g), 20
36–402(d)(1)(vi) 36–402(b)(2)(i) and (d)(1)(vi), 36–404(i)(3), 36–407(a)(3) and 21
(b), 36–409(a), 36–501(a) and (d), 36–505, and 36–903(a), and 36–1102(e) and 22
(f) 23
Annotated Code of Maryland 24
(2016 Volume and 2023 Supplement) 25
BY repealing 26
Article – Alcoholic Beverages and Cannabis 27
Section 1–308(10) and (11) 28
Annotated Code of Maryland 29
(2016 Volume and 2023 Supplement) 30
BY adding to 31
Article – Alcoholic Beverages and Cannabis 32
Section 36–101(h–1) 33
Annotated Code of Maryland 34
(2016 Volume and 2023 Supplement) 35
BY repealing and reenacting, without amendments, 36
Article – Economic Development 37
Section 5–1901(b) 38
Annotated Code of Maryland 39
(2018 Replacement Volume and 2023 Supplement) 40
BY repealing and reenacting, with amendments, 41 HOUSE BILL 253 3
Article – Economic Development 1
Section 5–1901(g)(1) 2
Annotated Code of Maryland 3
(2018 Replacement Volume and 2023 Supplement) 4
BY repealing and reenacting, with amendments, 5
Article – Tax – General 6
Section 10–208(bb)(1), 10–308(b)(6), and 13–203(c)(10), (14), and (15) 7
Annotated Code of Maryland 8
(2022 Replacement Volume and 2023 Supplement) 9
BY adding to 10
Article – Tax – General 11
Section 13–203(c)(16) 12
Annotated Code of Maryland 13
(2022 Replacement Volume and 2023 Supplement) 14
BY repealing and reenacting, with amendments, 15
Chapter 254 of the Acts of the General Assembly of 2023 16
Section 10 17
BY repealing and reenacting, with amendments, 18
Chapter 255 of the Acts of the General Assembly of 2023 19
Section 10 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22
Article – Alcoholic Beverages and Cannabis 23
1–101. 24
(a) In this article the following words have the meanings indicated. 25
(d) (1) “Cannabis” means the plant Cannabis sativa L. and any part of the 26
plant, including all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of 27
isomers, whether growing or not, with a delta–9–tetrahydrocannabinol concentration 28
greater than 0.3% on a dry weight basis. 29
(2) “Cannabis” includes cannabis products, SEEDS, SEEDLINGS, 30
IMMATURE PLANTS , AND CLONES . 31
(3) “Cannabis” does not include hemp or hemp products, as defined in § 32
14–101 of the Agriculture Article. 33
1–202. 34
4 HOUSE BILL 253
(a) To the extent that a statement of a general rule of law conflicts or is 1
inconsistent with an exception or a qualification applicable to a special area, particular 2
person, or set of circumstances, the exception or qualification prevails. 3
(b) A provision in Division II of this article prevails over a conflicting or 4
inconsistent provision in Division I of this article or a provision in the Tax – General Article 5
relating to alcoholic beverages. 6
(c) A provision in Division III of this article prevails over a conflicting or 7
inconsistent provision in Division I OR DIVISION II of this article or a provision in the Tax 8
– General Article relating to cannabis. 9
1–303. 10
(a) (1) The Commission consists of [seven] FIVE members to be appointed by 11
the Governor with the advice and consent of the Senate. 12
(3) Of the Commission members: 13
(i) one shall be knowledgeable and experienced in public health 14
matters; 15
(ii) one shall be knowledgeable and experienced in law enforcement 16
matters; 17
(iii) one shall be knowledgeable and experienced in the alcoholic 18
beverages industry; AND 19
(iv) [one shall have expertise in cannabis research and policy; 20
(v) one shall have expertise in alcohol and tobacco policy; and 21
(vi)] two shall be members of the public who are knowledgeable and 22
experienced in fiscal matters and shall have substantial experience: 23
1. as an executive with fiduciary responsibilities in charge of 24
a large organization or foundation; 25
2. in an academic field relating to finance or economics; or 26
3. as an accountant, an economist, or a financial analyst. 27
1–308. 28
The Commission shall develop best practices for: 29
HOUSE BILL 253 5
(8) the development of a public health impact statement for all changes to 1
the State alcoholic beverages laws; AND 2
(9) ensuring that: 3
(i) all license holders, managers, and servers receive certification 4
from an approved alcohol awareness program; and 5
(ii) at least one employee who is certified in an alcohol awareness 6
program be on the licensed premises at all times when alcoholic beverages are served[; 7
(10) regulating the cannabis industry and implementing public health 8
measures relating to cannabis; and 9
(11) regulating, to the extent possible, medical and adult–use cannabis in a 10
similar manner]. 11
1–309.1. 12
(d) The Office of Social Equity shall: 13
(5) provide recommendations to the [Commission] MARYLAND 14
CANNABIS ADMINISTRATION on regulations related to: 15
(i) diversity; and 16
(ii) social equity applications; 17
(e) (1) On or before March 1 each year, the Office of Social Equity shall produce 18
and make publicly available a report on how the funds in the Community Reinvestment 19
and Repair Fund under § 1–322 of this subtitle were allocated during the immediately 20
preceding calendar year. 21
(2) The report shall also be submitted to the General Assembly in 22
accordance with § 2–1257 of the State Government Article. 23
(3) THE OFFICE MAY REQUEST INFORMAT ION FROM POLITICAL 24
SUBDIVISIONS AND ENT ITIES RECEIVING DIST RIBUTIONS FROM THE FUND TO 25
ASSIST WITH THE COMP LETION OF THE REPORT . 26
(f) (1) On or before November 1 [each year] EVERY 2 YEARS, BEGINNING IN 27
2024, the Office of Social Equity shall solicit public input on the uses of the funds in the 28
Community Reinvestment and Repair Fund under § 1–322 of this subtitle. 29
(f) (2) On or before December 15 each year EVERY 2 YEARS, BEGINNING IN 30
2024, the Office of Social Equity shall publish a review of the input received under 31 6 HOUSE BILL 253
paragraph (1) of this subsection on a publicly accessible part of the [Commission’s] 1
OFFICE’S website. 2
(3) THE OFFICE SHALL INCLUDE IN THE REVIEW INFORM ATION ON 3
HOW THE FUNDS RECEIV ED FROM THE FUND WERE SPENT DURIN G THE 4
IMMEDIATELY PRECEDIN G 2 CALENDAR YEARS . 5
1–309.2. 6
(a) In this section, “Advisory Board” means the Advisory Board on Medical and 7
Adult–Use Cannabis. 8
(b) There is an Advisory Board on Medical and Adult–Use Cannabis. 9
(c) The Advisory Board shall: 10
(1) consider all matters submitted to it by the [Commission] OFFICE OF 11
SOCIAL EQUITY, the Governor, the Maryland Cannabis Administration, or the General 12
Assembly; and 13
(2) on its own initiative, provide recommendations to the [Commission] 14
OFFICE OF SOCIAL EQUITY or the Maryland Cannabis Administration established under 15
§ 36–201 of this article regarding guidelines, rules, and regulations that the Advisory Board 16
considers important or necessary for review and consideration by the [Commission] 17
OFFICE OF SOCIAL EQUITY or the Maryland Cannabis Administration. STUDY AND 18
MAKE RECOMMENDATIONS ON: 19
(I) THE IMPACT ON THE LE GAL MEDICAL AND ADUL T–USE 20
CANNABIS INDUSTRY IN THE STATE IF THE FEDERAL GOVERNMENT : 21
1. RESCHEDULES CANNABIS FROM SCHEDULE I TO 22
SCHEDULE III UNDER THE FEDERAL CONTROLLED SUBSTANCES ACT; OR 23
2. REMOVES CANNABIS FRO M THE LIST OF CONTRO LLED 24
SUBSTANCES UNDER THE FEDERAL CONTROLLED SUBSTANCES ACT; 25
(II) MEASURES TO PROTECT AND PROMOTE THE LEGA L 26
MEDICAL AND ADULT –USE CANNABIS INDUSTR Y IN THE STATE IF CANNABIS IS: 27
1. RESCHEDULED FROM SCHEDULE I TO SCHEDULE III; 28
OR 29
2. REMOVED FROM THE FED ERAL CONTROLLED 30
SUBSTANCES ACT; 31
HOUSE BILL 253 7
(III) MEASURES TO ENABLE S TANDARD AND MICRO CA NNABIS 1
LICENSEES AND SMALL BUSINESSES TO COMPET E IN INTERSTATE CO MMERCE 2
RELATED TO THE CULTI VATION, MANUFACTURE , DISTRIBUTION, AND TESTING OF 3
CANNABIS AND CANNABI S PRODUCTS; 4
(IV) METHODS TO ENSURE TH AT THERE IS AN ADEQU ATE 5
SUPPLY OF AFFORDABLE CANNABIS AND CANNABI S PRODUCTS FOR QUALI FYING 6
PATIENTS, INCLUDING CANNABI S AND CANNABIS PRODU CTS CONTAINING VARYI NG 7
LEVELS OF POTENCY ; AND 8
(V) METHODS TO ASSIST SO CIAL EQUITY APPLICAN TS, SOCIAL 9
EQUITY LICENSEES , AND SMALL, MINORITY, AND WOMEN –OWNED BUSINESSES TO : 10
1. ACCESS FUNDS FOR OPE RATING OR CAPITAL 11
EXPENSES ASSOCIATED WITH A BU SINESS PARTICIPATING IN THE MEDICAL AND 12
ADULT–USE CANNABIS INDUSTR Y; 13
2. OBTAIN FINANCING FRO M A LENDER, AS DEFINED IN § 14
36–1401 OF THIS ARTICLE; AND 15
3. PARTNER WITH OPERATI ONAL CANNABIS LICENS EES 16
IN WAYS THAT THE SOC IAL EQUITY APPLICANTS OR LICENS EES OR SMALL , 17
MINORITY, OR WOMEN–OWNED BUSINESSES RET AIN OWNERSHIP AND CO NTROL OF 18
THE LICENSES AND BUS INESSES. 19
(d) (1) The Advisory Board consists of[: 20
(1) the Director of the Maryland Cannabis Administration, who shall serve 21
as Chair of the Advisory Board; and 22
(2)] the following members, appointed by the Governor with the advice and 23
consent of the Senate: 24
(i) three members that have substantial experience in one or more 25
of the following: 26
1. cannabis law, science, or policy; 27
2. public health or health care; 28
3. agriculture; 29
4. finance; or 30
5. addiction treatment; 31 8 HOUSE BILL 253
(ii) one academic researcher with at least 5 years of experience in 1
social or health equity; 2
(iii) one representative of an independent testing laboratory 3
registered under § 36–408 of this article; 4
(iv) two representatives who hold a standard grower license under § 5
36–401 of this article; 6
(v) two representatives who hold a standard processor license under 7
§ 36–401 of this article; 8
(vi) two representatives who hold a standard dispensary license 9
under § 36–401 of this article; 10
(vii) two representatives who hold a micro grower license under § 11
36–401 of this article; 12
(viii) two representatives who hold a micro processor license under § 13
36–401 of this article; 14
(ix) two representatives who hold a micro dispensary license under § 15
36–401 of this article; 16
(x) one representative who holds an incubator space license under § 17
36–401 of this article; 18
(xi) one representative who holds an on–site consumption license 19
under § 36–401 of this article; 20
(xii) one representative of an organization that advocates on behalf of 21
patients who engage in the medical use of cannabis; 22
(xiii) one representative of an organization that advocates on behalf of 23
consumers who engage in the adult use of cannabis; and 24
(xiv) one health care provider who is registered to certify patients to 25
obtain medical cannabis under § 36–301 of this article. 26
(2) FROM AMONG THE MEMBER S OF THE THE ADVISORY BOARD, THE 27
GOVERNOR SHALL APPOINT ELECT A CHAIR FROM AMONG ITS MEMBE RS. 28
(e) The President of the Senate and the Speaker of the House may recommend to 29
the Governor a list of individuals for appointment to the Advisory Board. 30
(f) (1) The term of a member of the Advisory Board is 4 years. 31 HOUSE BILL 253 9
(2) At the end of a term, a member continues to serve until a successor is 1
appointed and qualifies. 2
(3) An appointed member may not serve more than two full terms. 3
(4) The positions for members appointed under subsection [(d)(2)(vii) 4
through (xi)] (D)(1)(VII) THROUGH (XI) of this section become effective when the first 5
licenses are issued under those respective license types. 6
(g) An appointed member of the Advisory Board must be: 7
(1) at least 25 years old; 8
(2) a resident of the State who has resided in the State for at least the 9
immediately preceding 5 years before the appointment; and 10
(3) a registered voter of the State. 11
(h) The Advisory Board shall establish at least two subcommittees to focus on 12
medical and adult–use cannabis. 13
(i) To the extent practicable and consistent with federal and State law, the 14
membership of the Advisory Board shall reflect the racial, ethnic, and gender diversity of 15
the State. 16
(J) THE MARYLAND CANNABIS ADMINISTRATION SHALL PROVIDE STAFF 17
FOR THE ADVISORY BOARD. 18
1–322. 19
(a) (1) There is a Community Reinvestment and Repair Fund. 20
(7) (I) The State Treasurer shall invest the money of the Fund in the 21
same manner as other State money may be invested. 22
(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 23
CREDITED TO THE GENERAL FUND OF THE STATE. 24
(8) No part of the Fund may revert or be credited to: 25
(i) the General Fund of the State; or 26
(ii) any other special fund of the State. 27
10 HOUSE BILL 253
(b) (2) [(i)] Subject to the limitations under subsection (a)(6) of this section, 1
each county shall adopt a law establishing the purpose for which money received from the 2
Fund may be used. 3
[(ii) On or before December 1 every 2 years, beginning in 2024, each 4
political subdivision that receives funds from the Fund under paragraph (1) of this 5
subsection shall submit a report to the Governor and, in accordance with § 2–1257 of the 6
State Government Article, the Senate Budget and Taxation Committee and the House 7
Appropriations Committee on how funds received from the Fund were spent during the 8
immediately preceding 2 fiscal years.] 9
36–101. 10
(a) In this title the following words have the meanings indicated. 11
(h) “Cannabis licensee” means a business licensed by the Administration to 12
operate in the cannabis industry. 13
(H–1) “CANNABIS NURSERY ” MEANS A BUSINESS THA T PROVIDES CANNABIS 14
SEEDS, SEEDLINGS, IMMATURE PLANTS , OR CLONES TO A CANNA BIS BUSINESS. 15
(j) “Cannabis registrant” means an independent testing laborat ory, a 16
transporter, a security guard company, a waste disposal company, A CANNABIS NURSERY , 17
and any other type of cannabis business registered under this title and authorized by the 18
Administration. 19
(aa) “Ownership interest” means a direct or indirect equity interest in a cannabis 20
licensee, including in its PROFITS, REVENUES, shares, or stock. 21
(dd) “Processor” means an entity licensed under this title that: 22
(1) transforms cannabis into another product or an extract and packages 23
and labels the cannabis product; and 24
(2) is authorized by the Administration to provide cannabis to [licensed 25
dispensaries] CANNABIS LICENSEES and registered independent testing laboratories. 26
36–202. 27
(a) The Administration shall: 28
(1) develop and maintain a seed–to–sale tracking system that tracks 29
cannabis from either the seed or immature plant stage until the cannabis is sold to a 30
patient, caregiver, or consumer; 31
HOUSE BILL 253 11
(2) conduct financial and criminal background investigations of any person 1
who submits an application for a cannabis license or a cannabis licensee, as required under 2
this title; 3
(3) develop a process for consumers and qualifying patients to purchase 4
clones and seeds, seedlings, stalks, roots, and stems of the cannabis plant for cultivation in 5
accordance with § 5–601.2 of the Criminal Law Article; 6
(4) solicit, evaluate, and issue or deny applications for cannabis licenses 7
and cannabis registrations, including: 8
(i) licenses to operate a cannabis business in accordance with this 9
title; and 10
(ii) registration for independent testing laboratories, transporters, 11
security guard companies, [and] waste disposal companies, AND CANNABIS NURSERI ES; 12
(5) award or deny: 13
(i) a license to operate a cannabis business in accordance with this 14
title; and 15
(ii) registration to independent testing laboratories, transporters, 16
security guard companies, waste disposal companies, CANNABIS NURSERIES , and any 17
other type of cannabis business authorized by the Administration; 18
(6) conduct announced and unannounced inspections of any business 19
licensed or registered under this title to ensure compliance with this title; 20
(7) after a determination that a violation of this title or a regulation 21
adopted under this title has occurred, suspend, fine, restrict, or revoke cannabis licenses 22
and cannabis registrations, whether active, expired, or surrendered, or impose any other 23
penalty authorized by this title or any regulation adopted under this title; 24
(8) (i) give notice and hold a hearing in accordance with Title 10, 25
Subtitle 2 of the State Government Article, for any: 26
1. contested cannabis license or registration denial; or 27
2. violation of this title or any regulation adopted under this 28
title; 29
(ii) administer oaths in a proceeding under this section; and 30
(iii) subject to subsection (b)(3) of this section, allow the person 31
against whom the action is contemplated to be represented at the hearing by counsel; 32
12 HOUSE BILL 253
(9) adopt regulations necessary to carry out its duties under this title; and 1
(10) perform any other power authorized or duty required under this title or 2
any other provision of State law. 3
(b) The Administration may: 4
(1) issue a subpoena for the attendance of a witness to testify or the 5
production of evidence in connection with: 6
(i) any disciplinary action under this title; or 7
(ii) any investigation or proceeding initiated for an alleged violation 8
of this title; 9
(2) delegate the hearing authority authorized under subsection (a)(8) of 10
this section to an employee within the Administration; [and] 11
(3) if, after due notice, the person against whom a disciplinary action is 12
contemplated does not appear at a hearing, hear and determine the matter; AND 13
(4) AFTER A HEARING UNDE R THIS SUBSECTION , FINE A CANNABIS 14
LICENSEE OR SUSPEND , RESTRICT, OR REVOKE A CANNABIS LICENSE OR A 15
CANNABIS REGISTRATIO N FOR A VIOLATION OF : 16
(I) THIS TITLE OR A REGU LATION ADOPTED UNDER THIS TITLE; 17
OR 18
(II) ANY OTHER STATE LAW OR REGULATI ON RELATED TO 19
CANNABIS OR THE OPER ATIONS OF A CANNABIS BUSINESS OR REGISTRA NT. 20
36–206. 21
(b) There is a Cannabis Regulation and Enforcement Fund. 22
(d) The [Comptroller] ADMINISTRATION shall administer the Fund [at the 23
direction of the Administration]. 24
(j) (1) On or before March 15 each year, the [Comptroller] ADMINISTRATION 25
shall publish on its website a detailed report on revenue distributed to and expenditures 26
from the Fund. 27
36–302. 28
(g) A qualifying patient may NOT possess [up to: 29
HOUSE BILL 253 13
(1) 120 grams of usable cannabis; or 1
(2) 36 grams of delta–9–tetrahydrocannabinol (THC) in the case of a 2
cannabis–infused product] MORE THAN THE AMOUNT OF CANNABIS OR 3
CANNABIS–INFUSED PRODUCT THA T IS AUTHORIZED IN T HE WRITTEN 4
CERTIFICATION OF THE PATIENT. 5
36–401. 6
(c) (1) A standard license authorizes the holder of the license: 7
(i) for growers, to operate more than 10,000 square feet, but not 8
more than 300,000 square feet, of indoor canopy or its equivalent, as calculated by the 9
Administration; 10
(ii) for processors, to process more than [1,000] 2,000 pounds of 11
cannabis per year, as calculated by the Administration; and 12
(iii) for dispensaries, to operate a store at a physical location that 13
sells cannabis or cannabis products. 14
(2) A micro license authorizes the holder of the license: 15
(i) for growers, to operate not more than 10,000 square feet of indoor 16
canopy or its equivalent, as calculated by the Administration; 17
(ii) for processors, to process not more than [1,000] 2,000 pounds of 18
cannabis per year, as calculated by the Administration; and 19
(iii) for dispensaries, to operate a delivery service that sells cannabis 20
or cannabis products without a physical storefront, provided that the licensee employs not 21
more than 10 employees. 22
(e) (1) This subsection applies to all licenses, including licenses converted 23
under subsection (b)(1)(ii) of this section. 24
(2) Subject to paragraph (3) of this subsection, a person may have an 25
ownership interest in or control of, including the power to manage and operate: 26
(i) for standard licenses and micro licenses: 27
1. one grower licensee; 28
2. one processor licensee; and 29
3. not more than four dispensary licensees; 30 14 HOUSE BILL 253
(ii) for incubator space licenses, not more than two licensees; and 1
(iii) for on–site consumption licenses, not more than two licensees. 2
(3) (i) A person who owns or controls an incubator space licensee or an 3
on–site consumption licensee may not own or control any [other] cannabis licensee LISTED 4
UNDER PARAGRAPH (2)(I) OF THIS SUBSECTION . 5
(ii) The Administration shall adopt regulations limiting a person or 6
fund from acquiring a nonmajority ownership interest in multiple cannabis businesses 7
beyond the limitations established under this subsection. 8
(4) The restrictions in paragraph (2) of this subsection do not apply to a 9
person or an entity who holds an ownership interest only as a passive investor. 10
(g) Notwithstanding any provisions of this title, the holder of a dispensary license 11
issued by the Natalie M. LaPrade Medical Cannabis Commission who converts the license 12
or a registrant with the Natalie M. LaPrade Medical Cannabis Commission may continue 13
to deliver medical cannabis until July 1, [2024] 2025. 14
36–402. 15
(b) (2) (i) Except as provided in subparagraph (ii) of this paragraph and 16
subject to subparagraph (iii) of this paragraph, on or before January 1, [2026] 2027, an 17
operational business that holds a grower license issued before December 31, 2022, may 18
expand the canopy of its operations as it existed on December 31, 2022, and based on facility 19
square footage of indoor canopy space or its equivalent, as calculated by the Administration 20
in accordance with subsection (d) of this section, only as follows: 21
1. if the canopy is under 25,000 square feet, to 25,000 square 22
feet or by 20%, whichever is greater; 23
2. if the canopy is at or above 25,000 square feet, by 20%; or 24
3. if the cannabis licensee has a square footage expansion 25
that was preapproved before December 31, 2022, the preapproved expansion or 20%, 26
whichever is greater. 27
(d) (1) (vi) If the amount of square feet of production for a licensed grower 28
exceeds the canopy authorized under this section and § 36–401 of this subtitle, the 29
[Commission] ADMINISTRATION may: 30
1. reduce the canopy of the licensed grower by the same 31
percentage as it exceeds the authorized canopy; and 32
HOUSE BILL 253 15
2. seize, destroy, confiscate, or place an administrative hold 1
on any flowering cannabis plants produced in excess of the canopy. 2
36–404. 3
(i) (3) On or before 6 months after the issuance of a cannabis license under § 4
36–401 of this subtitle, the Governor’s Office of Small, Minority, and Women Business 5
Affairs, in consultation with the Office of the Attorney General and the Office of Social 6
Equity within the [Alcohol, Tobacco, and Cannabis Commission] ADMINISTRATION and 7
the cannabis licensee, shall establish a clear plan for setting reasonable and appropriate 8
minority business enterprise participation goals and procedures for the procurement of 9
goods and services related to cannabis, including the cultivation, manufacturing, and 10
dispensing of cannabis. 11
36–407. 12
(a) (3) An on–site consumption establishment may operate only if the [county 13
and, if applicable, the municipality,] POLITICAL SUBDIVISIO N where the business is 14
located [have] HAS issued a permit or license that expressly allows the operation of the 15
on–site consumption establishment. 16
(b) Subject to the limitations in § 36–405 of this subtitle, a [county and, if 17
applicable, a municipality] POLITICAL SUBDIVISIO N may: 18
(1) prohibit the operation of on–site consumption establishments; 19
(2) prohibit or restrict the smoking or vaping of cannabis at on–site 20
consumption establishments; or 21
(3) adopt zoning and planning requirements for on–site consumption 22
establishments. 23
36–409. 24
(a) The following businesses shall register with the Administration in order to 25
provide services to a cannabis licensee: 26
(1) a transporter; 27
(2) a security guard agency; 28
(3) a waste disposal company; [and] 29
(4) A CANNABIS NURSERY ; AND 30
16 HOUSE BILL 253
(5) any other type of cannabis business that is authorized by the 1
Administration to provide plant or product–touching services to cannabis licensees. 2
36–501. 3
(a) A cannabis agent [shall] MUST be registered with the Administration before 4
the agent may volunteer or work for a cannabis licensee or cannabis registrant. 5
(d) (1) The Administration may not register as a cannabis agent an individual 6
who[: 7
(1)] does not meet the criteria established under subsection (c) of this 8
section[; or]. 9
(2) THE ADMINISTRATION MAY DISQUALIF Y AN INDIVIDUAL FROM 10
REGISTERING AS A CAN NABIS AGENT IF THE I NDIVIDUAL has been convicted of or 11
pleaded nolo contendere to a crime involving moral turpitude, whether or not any appeal 12
or other proceeding is pending to have the conviction or plea set aside. 13
36–505. 14
(a) In this section, “Central Repository” means the Criminal Justice Information 15
System Central Repository in the Department of Public Safety and Correctional Services. 16
(b) As part of an application to the Central Repository for a State and national 17
criminal history records check, an applicant shall submit to the Central Repository: 18
(1) two complete sets of legible fingerprints taken on forms approved by the 19
Director of the Central Repository and the Director of the Federal Bureau of Investigation; 20
(2) the fee authorized under § 10–221(b)(7) of the Criminal Procedure 21
Article for access to State criminal history records; and 22
(3) the processing fee required by the Federal Bureau of Investigation for 23
a national criminal history records check. 24
(c) In accordance with §§ 10–201 through 10–228 of the Criminal Procedure 25
Article, the Central Repository shall forward to the Administration and to the applicant 26
the applicant’s criminal history record information. 27
(d) If an applicant has made two or more unsuccessful attempts at securing 28
legible fingerprints, the Administration may accept an alternate method of a criminal 29
history records check as permitted by the Director of the Central Repository and the 30
Director of the Federal Bureau of Investigation. 31
(e) Information obtained from the Central Repository under this section shall be: 32 HOUSE BILL 253 17
(1) confidential and may not be redisseminated; and 1
(2) used only for the purpose of registration under this title. 2
(f) (1) THE ADMINISTRATION MAY IS SUE A TEMPORARY CANN ABIS 3
AGENT REGISTRATION I F: 4
(I) AN ALTERNATE METHOD OF A CRIMINAL HISTOR Y RECORDS 5
CHECK, AS AUTHORIZED BY THE DIRECTOR OF THE CENTRAL REPOSITORY AND THE 6
DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION , IS USED A 7
PRE–EMPLOYMENT BACKGROUN D CHECK COMPLETED BY A THIRD–PARTY VENDOR IS 8
SUBMITTED TO AND APP ROVED BY THE ADMINISTRATION ; AND 9
(II) THE APPLICANT HAS SU BMITTED AN APPLICATI ON TO THE 10
CENTRAL REPOSITORY, AS REQUIRED IN SUBSE CTION (B) OF THIS SECTION. 11
(2) THE PERIOD OF A TEMPO RARY CANNABIS AGENT REGISTRATION 12
ISSUED UNDER PARAGRA PH (1) OF THIS SUBSECTION M AY NOT EXCEED 60 90 13
CALENDAR DAYS . 14
(G) The subject of a criminal history records check under this section may contest 15
the criminal history record information disseminated by the Central Repository, as 16
provided in § 10–223 of the Criminal Procedure Article. 17
36–903. 18
(a) (1) [This subsection does not apply to an advertisement placed on property 19
owned or leased by a dispensary, grower, or processor. 20
(2)] An advertisement for a cannabis licensee, cannabis product, or 21
cannabis–related service may not: 22
(i) violate Title 13, Subtitle 3 of the Commercial Law Article; 23
(ii) directly or indirectly target individuals under the age of 21 years; 24
(iii) contain a design, an illustration, a picture, or a representation 25
that: 26
1. targets or is attractive to minors, including a cartoon 27
character, a mascot, or any other depiction that is commonly used to market products to 28
minors; 29
18 HOUSE BILL 253
2. displays the use of cannabis, including the consumption, 1
smoking, or vaping of cannabis; 2
3. encourages or promotes cannabis for use as an intoxicant; 3
or 4
4. is obscene; 5
(iv) engage in advertising by means of television, radio, Internet, 6
mobile application, social media, or other electronic communication, EVENT 7
SPONSORSHIP , or print publication, unless at least 85% of the audience is reasonably 8
expected to be at least 21 years old as determined by reliable and current audience 9
composition data; or 10
(v) EXCEPT AS PROVIDED IN PARAG RAPH (2) OF THIS 11
SUBSECTION, engage in advertising by means of placing an advertisement on the side of a 12
building or another publicly visible location of any form, including a sign, a poster, a 13
placard, a device, a graphic display, an outdoor billboard, or a freestanding signboard. 14
(2) A CANNABIS BUSINESS MA Y PLACE EXTERIOR SIG NAGE ON THE 15
PREMISES OF THE BUSI NESS FOR THE LIMITED PURPOSE OF IDENTIFYI NG THE 16
BUSINESS TO THE PUBL IC. 17
36–1102. 18
(e) A person who violates subsection (b) of this section: 19
(1) MAY BE CHARGED BY A CITATION; AND 20
(2) is guilty of a misdemeanor and on conviction is subject to a fine not 21
exceeding $5,000. 22
(f) A person who violates subsection (c) of this section: 23
(1) MAY BE CHARGED BY A CITATION; AND 24
(2) is guilty of a misdemeanor and on conviction is subject to a fine not 25
exceeding $10,000. 26
Article – Economic Development 27
5–1901. 28
(b) There is a Cannabis Business Assistance Fund. 29
HOUSE BILL 253 19
(g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only 1
for: 2
(i) grants or loans to small, minority–owned, or women–owned 3
businesses for: 4
1. license application assistance for participation in the 5
adult–use cannabis industry; 6
2. assistance with the operating or capital expenses of a 7
business participating in the adult–use cannabis industry; or 8
3. targeted training to support participation in the adult–use 9
cannabis industry; [and] 10
(ii) grants to historically black colleges and universities for 11
cannabis–related programs and business development organizations, including incubators, 12
to train and assist small, minority, and women business owners and entrepreneurs seeking 13
to become licensed to participate in the adult–use cannabis industry; AND 14
(III) THE ADMINISTRATIVE C OSTS OF THE FUND. 15
Article – Tax – General 16
10–208. 17
(bb) (1) The subtraction under subsection (a) of this section includes the amount 18
of ordinary and necessary expenses paid or incurred during the taxable year in carrying on 19
a trade or a business as a [medical] cannabis grower, processor, dispensary, or any other 20
cannabis establishment licensed OR REGISTERED by the State, if the deduction for 21
ordinary and necessary expenses is disallowed under § 280E of the Internal Revenue Code. 22
10–308. 23
(b) The subtraction under subsection (a) of this section includes the amounts 24
allowed to be subtracted for an individual under: 25
(6) § 10–208(bb) of this title (Trade or business expenses of [medical] A 26
LICENSED OR REGISTER ED cannabis grower, processor, dispensary, or any other 27
cannabis establishment). 28
13–203. 29
(c) Tax information may be disclosed to: 30
(10) the Alcohol [and], Tobacco, AND CANNABIS Commission; 31 20 HOUSE BILL 253
(14) a hospital, the Health Services Cost Review Commission, the 1
Department of Human Services, the Maryland Department of Health, and the State 2
Department of Education, to the extent necessary to administer § 19–214.4 of the Health – 3
General Article; [and] 4
(15) subject to subsection (e) of this section, the Maryland Small Business 5
Retirement Savings Board and its authorized contractors for the purpose of administering 6
the Maryland Small Business Retirement Savings Program and Trust as authorized under 7
Title 12 of the Labor and Employment Article; AND 8
(16) THE MARYLAND CANNABIS ADMINISTRATION . 9
Chapter 254 of the Acts of 2023 10
SECTION 10. AND BE IT FURTHER ENACTED, That, notwithstanding any other 11
provision of law, from the date this Act takes effect to December 31, [2023] 2024, both 12
inclusive, the Maryland Cannabis Administration is exempt from procurement 13
requirements under the State Finance and Procurement Article if the procurement is for: 14
(1) banking services for the Administration to collect fees and tax revenue; 15
(2) banking services to help support cannabis businesses to transition from 16
an all cash system; 17
(3) a consultant to support the Administration in the process for cannabis 18
licensure, including services related to investigations and the financial or criminal history 19
review of applicants; 20
(4) a consultant to provide technical assistance to social equity applicants; 21
(5) communication services for public and consumer education campaigns 22
on cannabis laws and regulations and potential health and safety risks associated with 23
cannabis use; and 24
(6) establishing a State cannabis testing laboratory at a preexisting site. 25
Chapter 255 of the Acts of 2023 26
SECTION 10. AND BE IT FURTHER ENACTED, That, notwithstanding any other 27
provision of law, from the date this Act takes effect to December 31, [2023] 2024, both 28
inclusive, the Maryland Cannabis Administration is exempt from procurement 29
requirements under the State Finance and Procurement Article if the procurement is for: 30
(1) banking services for the Administration to collect fees and tax revenue; 31
HOUSE BILL 253 21
(2) banking services to help support cannabis businesses to transition from 1
an all cash system; 2
(3) a consultant to support the Administration in the process for cannabis 3
licensure, including services related to investigations and the financial or criminal history 4
review of applicants; 5
(4) a consultant to provide technical assistance to social equity applicants; 6
(5) communication services for public and consumer education campaigns 7
on cannabis laws and regulations and potential health and safety risks associated with 8
cannabis use; and 9
(6) establishing a State cannabis testing laboratory at a preexisting site. 10
SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergency 11
measure, is necessary for the immediate preservation of the public health or safety, has 12
been passed by a yea and nay vote supported by three–fifths of all the members elected to 13
each of the two Houses of the General Assembly, and shall take effect from the date it is 14
enacted. 15
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.