WES MOORE, Governor Ch. 241
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Chapter 241
(House Bill 253)
AN ACT concerning
Cannabis Reform – Alterations
FOR the purpose of altering the best practices that the Alcohol, Tobacco, and Cannabis
Commission is required to develop; altering the membership of the Commission;
making alterations and clarifications related to the duties of the Commission, the
Office of Social Equity, the Advisory Board on Medical and Adult–Use Cannabis, and
the Maryland Cannabis Administration; altering the composition of the Advisory
Board; requiring the Governor to appoint the chair of the Advisory Board to elect a
chair and removing the Director of the Administration as chair; authorizing
processors to provide cannabis to cannabis licensees; requiring the Administration
to register and regulate cannabis nurseries; authorizing the Administration to
impose certain penalties on a cannabis license or registration for the violation of
certain laws and regulations; requiring the Administration rather than the
Comptroller to administer the Cannabis Regulation and Enforcement Fund; altering
the amount of cannabis that a qualifying patient may possess; altering the amount
of cannabis that processors may process; altering certain provisions of law related to
the registration of cannabis agents; providing for the temporary registration of
cannabis agents; altering certain provisions of law related to advertising and
cannabis; providing that certain violations may be charged by a citation; authorizing
the use of the Cannabis Business Assistance Fund for the administrative costs of the
Fund; authorizing the sharing of certain tax information with the Administration;
extending the period of time that the Administration is exempt from procurement
requirements under certain circumstances; and generally relating to medical and
adult–use cannabis.
BY repealing and reenacting, without amendments,
Article – Alcoholic Beverages and Cannabis
Section 1–101(a), 1–322(a)(1) and (8), 36–101(a) and (h), and 36–206(b)
Annotated Code of Maryland
(2016 Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Alcoholic Beverages and Cannabis
Section 1–101(d), 1–202, 1–303(a)(1) and (3), 1–308(8) and (9), 1–309.1(d)(5) and
(f)(2), (e), and (f), 1–309.2, 1–322(a)(7) and (b)(2), 36–101(j), (aa), and (dd),
36–202, 36–206(d) and (j)(1), 36–302(g), 36–401(c)(1) and (2), (e), and (g),
36–402(d)(1)(vi) 36–402(b)(2)(i) and (d)(1)(vi), 36–404(i)(3), 36–407(a)(3) and
(b), 36–409(a), 36–501(a) and (d), 36–505, and 36–903(a), and 36–1102(e) and
(f)
Annotated Code of Maryland
(2016 Volume and 2023 Supplement) Ch. 241 2024 LAWS OF MARYLAND
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BY repealing
Article – Alcoholic Beverages and Cannabis
Section 1–308(10) and (11)
Annotated Code of Maryland
(2016 Volume and 2023 Supplement)
BY adding to
Article – Alcoholic Beverages and Cannabis
Section 36–101(h–1)
Annotated Code of Maryland
(2016 Volume and 2023 Supplement)
BY repealing and reenacting, without amendments,
Article – Economic Development
Section 5–1901(b)
Annotated Code of Maryland
(2018 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Economic Development
Section 5–1901(g)(1)
Annotated Code of Maryland
(2018 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Article – Tax – General
Section 10–208(bb)(1), 10–308(b)(6), and 13–203(c)(10), (14), and (15)
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
BY adding to
Article – Tax – General
Section 13–203(c)(16)
Annotated Code of Maryland
(2022 Replacement Volume and 2023 Supplement)
BY repealing and reenacting, with amendments,
Chapter 254 of the Acts of the General Assembly of 2023
Section 10
BY repealing and reenacting, with amendments,
Chapter 255 of the Acts of the General Assembly of 2023
Section 10
WES MOORE, Governor Ch. 241
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SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Alcoholic Beverages and Cannabis
1–101.
(a) In this article the following words have the meanings indicated.
(d) (1) “Cannabis” means the plant Cannabis sativa L. and any part of the
plant, including all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of
isomers, whether growing or not, with a delta–9–tetrahydrocannabinol concentration
greater than 0.3% on a dry weight basis.
(2) “Cannabis” includes cannabis products, SEEDS, SEEDLINGS,
IMMATURE PLANTS , AND CLONES .
(3) “Cannabis” does not include hemp or hemp products, as defined in §
14–101 of the Agriculture Article.
1–202.
(a) To the extent that a statement of a general rule of law conflicts or is
inconsistent with an exception or a qualification applicable to a special area, particular
person, or set of circumstances, the exception or qualification prevails.
(b) A provision in Division II of this article prevails over a conflicting or
inconsistent provision in Division I of this article or a provision in the Tax – General Article
relating to alcoholic beverages.
(c) A provision in Division III of this article prevails over a conflicting or
inconsistent provision in Division I OR DIVISION II of this article or a provision in the Tax
– General Article relating to cannabis.
1–303.
(a) (1) The Commission consists of [seven] FIVE members to be appointed by
the Governor with the advice and consent of the Senate.
(3) Of the Commission members:
(i) one shall be knowledgeable and experienced in public health
matters;
(ii) one shall be knowledgeable and experienced in law enforcement
matters; Ch. 241 2024 LAWS OF MARYLAND
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(iii) one shall be knowledgeable and experienced in the alcoholic
beverages industry; AND
(iv) [one shall have expertise in cannabis research and policy;
(v) one shall have expertise in alcohol and tobacco policy; and
(vi)] two shall be members of the public who are knowledgeable and
experienced in fiscal matters and shall have substantial experience:
1. as an executive with fiduciary responsibilities in charge of
a large organization or foundation;
2. in an academic field relating to finance or economics; or
3. as an accountant, an economist, or a financial analyst.
1–308.
The Commission shall develop best practices for:
(8) the development of a public health impact statement for all changes to
the State alcoholic beverages laws; AND
(9) ensuring that:
(i) all license holders, managers, and servers receive certification
from an approved alcohol awareness program; and
(ii) at least one employee who is certified in an alcohol awareness
program be on the licensed premises at all times when alcoholic beverages are served[;
(10) regulating the cannabis industry and implementing public health
measures relating to cannabis; and
(11) regulating, to the extent possible, medical and adult–use cannabis in a
similar manner].
1–309.1.
(d) The Office of Social Equity shall:
(5) provide recommendations to the [Commission] MARYLAND
CANNABIS ADMINISTRATION on regulations related to: WES MOORE, Governor Ch. 241
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(i) diversity; and
(ii) social equity applications;
(e) (1) On or before March 1 each year, the Office of Social Equity shall produce
and make publicly available a report on how the funds in the Community Reinvestment
and Repair Fund under § 1–322 of this subtitle were allocated during the immediately
preceding calendar year.
(2) The report shall also be submitted to the General Assembly in
accordance with § 2–1257 of the State Government Article.
(3) THE OFFICE MAY REQUEST IN FORMATION FROM POLIT ICAL
SUBDIVISIONS AND ENT ITIES RECEIVING DIST RIBUTIONS FROM THE FUND TO
ASSIST WITH THE COMP LETION OF THE REPORT .
(f) (1) On or before November 1 [each year] EVERY 2 YEARS, BEGINNING IN
2024, the Office of Social Equity shall solicit public input on the uses of the funds in the
Community Reinvestment and Repair Fund under § 1–322 of this subtitle.
(f) (2) On or before December 15 each year EVERY 2 YEARS, BEGINNING IN
2024, the Office of Social Equity shall publish a review of the input received under
paragraph (1) of this subsection on a publicly accessible part of the [Commission’s]
OFFICE’S website.
(3) THE OFFICE SHALL INCLUDE IN THE REVIEW INFORM ATION ON
HOW THE FUNDS RECEIV ED FROM THE FUND WERE SPENT DURING THE
IMMEDIATELY PRECEDIN G 2 CALENDAR YEARS .
1–309.2.
(a) In this section, “Advisory Board” means the Advisory Board on Medical and
Adult–Use Cannabis.
(b) There is an Advisory Board on Medical and Adult–Use Cannabis.
(c) The Advisory Board shall:
(1) consider all matters submitted to it by the [Commission] OFFICE OF
SOCIAL EQUITY, the Governor, the Maryland Cannabis Administration, or the General
Assembly; and
(2) on its own initiative, provide recommendations to the [Commission]
OFFICE OF SOCIAL EQUITY or the Maryland Cannabis Administration established under Ch. 241 2024 LAWS OF MARYLAND
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§ 36–201 of this article regarding guidelines, rules, and regulations that the Advisory Board
considers important or necessary for review and consideration by the [Commission]
OFFICE OF SOCIAL EQUITY or the Maryland Cannabis Administration. STUDY AND
MAKE RECOMMENDATIONS ON:
(I) THE IMPACT ON THE LE GAL MEDICAL AND ADUL T–USE
CANNABIS INDUSTRY IN THE STATE IF THE FEDERAL GOVERNMENT :
1. RESCHEDULES CANNABIS FROM SCHEDULE I TO
SCHEDULE III UNDER THE FEDERAL CONTROLLED SUBSTANCES ACT; OR
2. REMOVES CANNABIS FRO M THE LIST OF CONTRO LLED
SUBSTANCES UNDER THE FEDERAL CONTROLLED SUBSTANCES ACT;
(II) MEASURES TO PROTECT AND PROMOTE THE LEGA L
MEDICAL AND ADULT–USE CANNABIS INDUSTR Y IN THE STATE IF CANNABIS IS:
1. RESCHEDULED FROM SCHEDULE I TO SCHEDULE III;
OR
2. REMOVED FROM THE FED ERAL CONTROLLED
SUBSTANCES ACT;
(III) MEASURES TO ENABLE S TANDARD AND MICRO CA NNABIS
LICENSEES AND SMALL BUSINESSES TO COMPETE IN I NTERSTATE COMMERCE
RELATED TO THE CULTI VATION, MANUFACTURE , DISTRIBUTION, AND TESTING OF
CANNABIS AND CANNABI S PRODUCTS;
(IV) METHODS TO ENSURE TH AT THERE IS AN ADEQU ATE
SUPPLY OF AFFORDABLE CANNABIS AND CANNABI S PRODUCTS FOR QUALI FYING
PATIENTS, INCLUDING CANNABIS A ND CANNABIS PRODUCTS CONTAINING VARYING
LEVELS OF POTENCY ; AND
(V) METHODS TO ASSIST SO CIAL EQUITY APPLICAN TS, SOCIAL
EQUITY LICENSEES , AND SMALL, MINORITY, AND WOMEN –OWNED BUSINESSES TO :
1. ACCESS FUNDS FOR OPE RATING OR CAPITAL
EXPENSES ASSOCIATED WITH A BUSINESS PART ICIPATING IN THE MED ICAL AND
ADULT–USE CANNABIS INDUSTR Y;
2. OBTAIN FINANCING FRO M A LENDER, AS DEFINED IN §
36–1401 OF THIS ARTICLE; AND
WES MOORE, Governor Ch. 241
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3. PARTNER WITH OPERATI ONAL CANNABIS LICENS EES
IN WAYS THAT THE SOCIAL EQUITY APPLICANTS OR LICENSEES OR SMALL ,
MINORITY, OR WOMEN–OWNED BUSINESSES RET AIN OWNERSHIP AND CO NTROL OF
THE LICENSES AND BUS INESSES.
(d) (1) The Advisory Board consists of[:
(1) the Director of the Maryland Cannabis Administration, who shall serve
as Chair of the Advisory Board; and
(2)] the following members, appointed by the Governor with the advice and
consent of the Senate:
(i) three members that have substantial experience in one or more
of the following:
1. cannabis law, science, or policy;
2. public health or health care;
3. agriculture;
4. finance; or
5. addiction treatment;
(ii) one academic researcher with at least 5 years of experience in
social or health equity;
(iii) one representative of an independent testing laboratory
registered under § 36–408 of this article;
(iv) two representatives who hold a standard grower license under §
36–401 of this article;
(v) two representatives who hold a standard processor license under
§ 36–401 of this article;
(vi) two representatives who hold a standard dispensary license
under § 36–401 of this article;
(vii) two representatives who hold a micro grower license under §
36–401 of this article;
(viii) two representatives who hold a micro processor license under §
36–401 of this article; Ch. 241 2024 LAWS OF MARYLAND
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(ix) two representatives who hold a micro dispensary license under §
36–401 of this article;
(x) one representative who holds an incubator space license under §
36–401 of this article;
(xi) one representative who holds an on–site consumption license
under § 36–401 of this article;
(xii) one representative of an organization that advocates on behalf of
patients who engage in the medical use of cannabis;
(xiii) one representative of an organization that advocates on behalf of
consumers who engage in the adult use of cannabis; and
(xiv) one health care provider who is registered to certify patients to
obtain medical cannabis under § 36–301 of this article.
(2) FROM AMONG THE MEMBER S OF THE THE ADVISORY BOARD, THE
GOVERNOR SHALL APPOINT ELECT A CHAIR FROM AMONG ITS MEMBE RS.
(e) The President of the Senate and the Speaker of the House may recommend to
the Governor a list of individuals for appointment to the Advisory Board.
(f) (1) The term of a member of the Advisory Board is 4 years.
(2) At the end of a term, a member continues to serve until a successor is
appointed and qualifies.
(3) An appointed member may not serve more than two full terms.
(4) The positions for members appointed under subsection [(d)(2)(vii)
through (xi)] (D)(1)(VII) THROUGH (XI) of this section become effective when the first
licenses are issued under those respective license types.
(g) An appointed member of the Advisory Board must be:
(1) at least 25 years old;
(2) a resident of the State who has resided in the State for at least the
immediately preceding 5 years before the appointment; and
(3) a registered voter of the State.
WES MOORE, Governor Ch. 241
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(h) The Advisory Board shall establish at least two subcommittees to focus on
medical and adult–use cannabis.
(i) To the extent practicable and consistent with federal and State law, the
membership of the Advisory Board shall reflect the racial, ethnic, and gender diversity of
the State.
(J) THE MARYLAND CANNABIS ADMINISTRATION SHALL PROVIDE STAFF
FOR THE ADVISORY BOARD.
1–322.
(a) (1) There is a Community Reinvestment and Repair Fund.
(7) (I) The State Treasurer shall invest the money of the Fund in the
same manner as other State money may be invested.
(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE
CREDITED TO THE GENERAL FUND OF THE STATE.
(8) No part of the Fund may revert or be credited to:
(i) the General Fund of the State; or
(ii) any other special fund of the State.
(b) (2) [(i)] Subject to the limitations under subsection (a)(6) of this section,
each county shall adopt a law establishing the purpose for which money received from the
Fund may be used.
[(ii) On or before December 1 every 2 years, beginning in 2024, each
political subdivision that receives funds from the Fund under paragraph (1) of this
subsection shall submit a report to the Governor and, in accordance with § 2–1257 of the
State Government Article, the Senate Budget and Taxation Committee and the House
Appropriations Committee on how funds received from the Fund were spent during the
immediately preceding 2 fiscal years.]
36–101.
(a) In this title the following words have the meanings indicated.
(h) “Cannabis licensee” means a business licensed by the Administration to
operate in the cannabis industry.
(H–1) “CANNABIS NURSERY ” MEANS A BUSINESS THA T PROVIDES CANNABIS
SEEDS, SEEDLINGS, IMMATURE PLANTS , OR CLONES TO A CANNA BIS BUSINESS. Ch. 241 2024 LAWS OF MARYLAND
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(j) “Cannabis registrant” means an indep endent testing laboratory, a
transporter, a security guard company, a waste disposal company, A CANNABIS NURSERY ,
and any other type of cannabis business registered under this title and authorized by the
Administration.
(aa) “Ownership interest” means a direct or indirect equity interest in a cannabis
licensee, including in its PROFITS, REVENUES, shares, or stock.
(dd) “Processor” means an entity licensed under this title that:
(1) transforms cannabis into another product or an extract and packages
and labels the cannabis product; and
(2) is authorized by the Administration to provide cannabis to [licensed
dispensaries] CANNABIS LICENSEES and registered independent testing laboratories.
36–202.
(a) The Administration shall:
(1) develop and maintain a seed–to–sale tracking system that tracks
cannabis from either the seed or immature plant stage until the cannabis is sold to a
patient, caregiver, or consumer;
(2) conduct financial and criminal background investigations of any person
who submits an application for a cannabis license or a cannabis licensee, as required under
this title;
(3) develop a process for consumers and qualifying patients to purchase
clones and seeds, seedlings, stalks, roots, and stems of the cannabis plant for cultivation in
accordance with § 5–601.2 of the Criminal Law Article;
(4) solicit, evaluate, and issue or deny applications for cannabis licenses
and cannabis registrations, including:
(i) licenses to operate a cannabis business in accordance with this
title; and
(ii) registration for independent testing laboratories, transporters,
security guard companies, [and] waste disposal companies, AND CANNABIS NURSERI ES;
(5) award or deny:
(i) a license to operate a cannabis business in accordance with this
title; and WES MOORE, Governor Ch. 241
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(ii) registration to independent testing laboratories, transporters,
security guard companies, waste disposal companies, CANNABIS NURSERIES , and any
other type of cannabis business authorized by the Administration;
(6) conduct announced and unannounced inspections of any business
licensed or registered under this title to ensure compliance with this title;
(7) after a determination that a violation of this title or a regulation
adopted under this title has occurred, suspend, fine, restrict, or revoke cannabis licenses
and cannabis registrations, whether active, expired, or surrendered, or impose any other
penalty authorized by this title or any regulation adopted under this title;
(8) (i) give notice and hold a hearing in accordance with Title 10,
Subtitle 2 of the State Government Article, for any:
1. contested cannabis license or registration denial; or
2. violation of this title or any regulation adopted under this
title;
(ii) administer oaths in a proceeding under this section; and
(iii) subject to subsection (b)(3) of this section, allow the person
against whom the action is contemplated to be represented at the hearing by counsel;
(9) adopt regulations necessary to carry out its duties under this title; and
(10) perform any other power authorized or duty required under this title or
any other provision of State law.
(b) The Administration may:
(1) issue a subpoena for the attendance of a witness to testify or the
production of evidence in connection with:
(i) any disciplinary action under this title; or
(ii) any investigation or proceeding initiated for an alleged violation
of this title;
(2) delegate the hearing authority authorized under subsection (a)(8) of
this section to an employee within the Administration; [and]
(3) if, after due notice, the person against whom a disciplinary action is
contemplated does not appear at a hearing, hear and determine the matter; AND Ch. 241 2024 LAWS OF MARYLAND
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(4) AFTER A HEARING UNDE R THIS SUBSECTION , FINE A CANNABIS
LICENSEE OR SUSPEND , RESTRICT, OR REVOKE A CANNABIS LICENSE OR A
CANNABIS REGISTRATIO N FOR A VIOLATION OF :
(I) THIS TITLE OR A REGU LATION ADOPTED UNDER THIS TITLE;
OR
(II) ANY OTHER STATE LAW OR REGULATI ON RELATED TO
CANNABIS OR THE OPER ATIONS OF A CANNABIS BUSINESS OR REGISTRA NT.
36–206.
(b) There is a Cannabis Regulation and Enforcement Fund.
(d) The [Comptroller] ADMINISTRATION shall administer the Fund [at the
direction of the Administration].
(j) (1) On or before March 15 each year, the [Comptroller] ADMINISTRATION
shall publish on its website a detailed report on revenue distributed to and expenditures
from the Fund.
36–302.
(g) A qualifying patient may NOT possess [up to:
(1) 120 grams of usable cannabis; or
(2) 36 grams of delta–9–tetrahydrocannabinol (THC) in the case of a
cannabis–infused product] MORE THAN THE AMOUNT OF CANNABIS OR
CANNABIS–INFUSED PRODUCT THAT IS AUTHORIZED IN THE WRITTEN
CERTIFICATION OF THE PATIENT.
36–401.
(c) (1) A standard license authorizes the holder of the license:
(i) for growers, to operate more than 10,000 square feet, but not
more than 300,000 square feet, of indoor canopy or its equivalent, as calculated by the
Administration;
(ii) for processors, to process more than [1,000] 2,000 pounds of
cannabis per year, as calculated by the Administration; and
WES MOORE, Governor Ch. 241
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(iii) for dispensaries, to operate a store at a physical location that
sells cannabis or cannabis products.
(2) A micro license authorizes the holder of the license:
(i) for growers, to operate not more than 10,000 square feet of indoor
canopy or its equivalent, as calculated by the Administration;
(ii) for processors, to process not more than [1,000] 2,000 pounds of
cannabis per year, as calculated by the Administration; and
(iii) for dispensaries, to operate a delivery service that sells cannabis
or cannabis products without a physical storefront, provided that the licensee employs not
more than 10 employees.
(e) (1) This subsection applies to all licenses, including licenses converted
under subsection (b)(1)(ii) of this section.
(2) Subject to paragraph (3) of this subsection, a person may have an
ownership interest in or control of, including the power to manage and operate:
(i) for standard licenses and micro licenses:
1. one grower licensee;
2. one processor licensee; and
3. not more than four dispensary licensees;
(ii) for incubator space licenses, not more than two licensees; and
(iii) for on–site consumption licenses, not more than two licensees.
(3) (i) A person who owns or controls an incubator space licensee or an
on–site consumption licensee may not own or control any [other] cannabis licensee LISTED
UNDER PARAGRAPH (2)(I) OF THIS SUBSECTION .
(ii) The Administration shall adopt regulations limiting a person or
fund from acquiring a nonmajority ownership interest in multiple cannabis businesses
beyond the limitations established under this subsection.
(4) The restrictions in paragraph (2) of this subsection do not apply to a
person or an entity who holds an ownership interest only as a passive investor.
(g) Notwithstanding any provisions of this title, the holder of a dispensary license
issued by the Natalie M. LaPrade Medical Cannabis Commission who converts the license Ch. 241 2024 LAWS OF MARYLAND
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or a registrant with the Natalie M. LaPrade Medical Cannabis Commission may continue
to deliver medical cannabis until July 1, [2024] 2025.
36–402.
(b) (2) (i) Except as provided in subparagraph (ii) of this paragraph and
subject to subparagraph (iii) of this paragraph, on or before January 1, [2026] 2027, an
operational business that holds a grower license issued before December 31, 2022, may
expand the canopy of its operations as it existed on December 31, 2022, and based on facility
square footage of indoor canopy space or its equivalent, as calculated by the Administration
in accordance with subsection (d) of this section, only as follows:
1. if the canopy is under 25,000 square feet, to 25,000 square
feet or by 20%, whichever is greater;
2. if the canopy is at or above 25,000 square feet, by 20%; or
3. if the cannabis licensee has a square footage expansion
that was preapproved before December 31, 2022, the preapproved expansion or 20%,
whichever is greater.
(d) (1) (vi) If the amount of square feet of production for a licensed grower
exceeds the canopy authorized under this section and § 36–401 of this subtitle, the
[Commission] ADMINISTRATION may:
1. reduce the canopy of the licensed grower by the same
percentage as it exceeds the authorized canopy; and
2. seize, destroy, confiscate, or place an administrative hold
on any flowering cannabis plants produced in excess of the canopy.
36–404.
(i) (3) On or before 6 months after the issuance of a cannabis license under §
36–401 of this subtitle, the Governor’s Office of Small, Minority, and Women Business
Affairs, in consultation with the Office of the Attorney General and the Office of Social
Equity within the [Alcohol, Tobacco, and Cannabis Commission] ADMINISTRATION and
the cannabis licensee, shall establish a clear plan for setting reasonable and appropriate
minority business enterprise participation goals and procedures for the procurement of
goods and services related to cannabis, including the cultivation, manufacturing, and
dispensing of cannabis.
36–407.
(a) (3) An on–site consumption establishment may operate only if the [county
and, if applicable, the municipality,] POLITICAL SUBDIVISIO N where the business is WES MOORE, Governor Ch. 241
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located [have] HAS issued a permit or license that expressly allows the operation of the
on–site consumption establishment.
(b) Subject to the limitations in § 36–405 of this subtitle, a [county and, if
applicable, a municipality] POLITICAL SUBDIVISIO N may:
(1) prohibit the operation of on–site consumption establishments;
(2) prohibit or restrict the smoking or vaping of cannabis at on–site
consumption establishments; or
(3) adopt zoning and planning requirements for on–site consumption
establishments.
36–409.
(a) The following businesses shall register with the Administration in order to
provide services to a cannabis licensee:
(1) a transporter;
(2) a security guard agency;
(3) a waste disposal company; [and]
(4) A CANNABIS NURSERY ; AND
(5) any other type of cannabis business that is authorized by the
Administration to provide plant or product–touching services to cannabis licensees.
36–501.
(a) A cannabis agent [shall] MUST be registered with the Administration before
the agent may volunteer or work for a cannabis licensee or cannabis registrant.
(d) (1) The Administration may not register as a cannabis agent an individual
who[:
(1)] does not meet the criteria established under subsection (c) of this
section[; or].
(2) THE ADMINISTRATION MAY DI SQUALIFY AN INDIVIDU AL FROM
REGISTERING AS A CAN NABIS AGENT IF THE I NDIVIDUAL has been convicted of or
pleaded nolo contendere to a crime involving moral turpitude, whether or not any appeal
or other proceeding is pending to have the conviction or plea set aside. Ch. 241 2024 LAWS OF MARYLAND
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36–505.
(a) In this section, “Central Repository” means the Criminal Justice Information
System Central Repository in the Department of Public Safety and Correctional Services.
(b) As part of an application to the Central Repository for a State and national
criminal history records check, an applicant shall submit to the Central Repository:
(1) two complete sets of legible fingerprints taken on forms approved by the
Director of the Central Repository and the Director of the Federal Bureau of Investigation;
(2) the fee authorized under § 10–221(b)(7) of the Criminal Procedure
Article for access to State criminal history records; and
(3) the processing fee required by the Federal Bureau of Investigation for
a national criminal history records check.
(c) In accordance with §§ 10–201 through 10–228 of the Criminal Procedure
Article, the Central Repository shall forward to the Administration and to the applicant
the applicant’s criminal history record information.
(d) If an applicant has made two or more unsuccessful attempts at securing
legible fingerprints, the Administration may accept an alternate method of a criminal
history records check as permitted by the Director of the Central Repository and the
Director of the Federal Bureau of Investigation.
(e) Information obtained from the Central Repository under this section shall be:
(1) confidential and may not be redisseminated; and
(2) used only for the purpose of registration under this title.
(f) (1) THE ADMINISTRATION MAY IS SUE A TEMPORARY CANN ABIS
AGENT REGISTRATION I F:
(I) AN ALTERNATE METHOD OF A CRIMINAL HISTOR Y RECORDS
CHECK, AS AUTHORIZED BY THE DIRECTOR OF THE CENTRAL REPOSITORY AND THE
DIRECTOR OF THE FEDERAL BUREAU OF INVESTIGATION , IS USED A
PRE–EMPLOYMENT BACKGROUN D CHECK COMPLETED BY A THIRD–PARTY VENDOR IS
SUBMITTED TO AND APP ROVED BY THE ADMINISTRATION ; AND
(II) THE APPLICANT HAS SU BMITTED AN APPLICATI ON TO THE
CENTRAL REPOSITORY, AS REQUIRED IN SUBSE CTION (B) OF THIS SECTION.
WES MOORE, Governor Ch. 241
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(2) THE PERIOD OF A TEMPO RARY CANNABIS AGENT REGISTRATION
ISSUED UNDER PARAGRA PH (1) OF THIS SUBSECTION M AY NOT EXCEED 60 90
CALENDAR DAYS .
(G) The subject of a criminal history records check under this section may contest
the criminal history record information disseminated by the Central Repository, as
provided in § 10–223 of the Criminal Procedure Article.
36–903.
(a) (1) [This subsection does not apply to an advertisement placed on property
owned or leased by a dispensary, grower, or processor.
(2)] An advertisement for a cannabis licensee, cannabis product, or
cannabis–related service may not:
(i) violate Title 13, Subtitle 3 of the Commercial Law Article;
(ii) directly or indirectly target individuals under the age of 21 years;
(iii) contain a design, an illustration, a picture, or a representation
that:
1. targets or is attractive to minors, including a cartoon
character, a mascot, or any other depiction that is commonly used to market products to
minors;
2. displays the use of cannabis, including the consumption,
smoking, or vaping of cannabis;
3. encourages or promotes cannabis for use as an intoxicant;
or
4. is obscene;
(iv) engage in advertising by means of television, radio, Internet,
mobile application, social media, or other electronic communication, EVENT
SPONSORSHIP , or print publication, unless at least 85% of the audience is reasonably
expected to be at least 21 years old as determined by reliable and current audience
composition data; or
(v) EXCEPT AS PROVIDED I N PARAGRAPH (2) OF THIS
SUBSECTION, engage in advertising by means of placing an advertisement on the side of a
building or another publicly visible location of any form, including a sign, a poster, a
placard, a device, a graphic display, an outdoor billboard, or a freestanding signboard.
Ch. 241 2024 LAWS OF MARYLAND
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(2) A CANNABIS BUSINESS MA Y PLACE EXTERIOR SIG NAGE ON THE
PREMISES OF THE BUSI NESS FOR THE LIMITED PURPOSE OF IDENTIFYI NG THE
BUSINESS TO THE PUBL IC.
36–1102.
(e) A person who violates subsection (b) of this section:
(1) MAY BE CHARGED BY A CITATION; AND
(2) is guilty of a misdemeanor and on conviction is subject to a fine not
exceeding $5,000.
(f) A person who violates subsection (c) of this section:
(1) MAY BE CHARGED BY A CITATION; AND
(2) is guilty of a misdemeanor and on conviction is subject to a fine not
exceeding $10,000.
Article – Economic Development
5–1901.
(b) There is a Cannabis Business Assistance Fund.
(g) (1) Subject to paragraph (2) of this subsection, the Fund may be used only
for:
(i) grants or loans to small, minority–owned, or women–owned
businesses for:
1. license application assistance for participation in the
adult–use cannabis industry;
2. assistance with the operating or capital expenses of a
business participating in the adult–use cannabis industry; or
3. targeted training to support participation in the adult–use
cannabis industry; [and]
(ii) grants to historically black colleges and universities for
cannabis–related programs and business development organizations, including incubators,
to train and assist small, minority, and women business owners and entrepreneurs seeking
to become licensed to participate in the adult–use cannabis industry; AND WES MOORE, Governor Ch. 241
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(III) THE ADMINISTRATIVE C OSTS OF THE FUND.
Article – Tax – General
10–208.
(bb) (1) The subtraction under subsection (a) of this section includes the amount
of ordinary and necessary expenses paid or incurred during the taxable year in carrying on
a trade or a business as a [medical] cannabis grower, processor, dispensary, or any other
cannabis establishment licensed OR REGISTERED by the State, if the deduction for
ordinary and necessary expenses is disallowed under § 280E of the Internal Revenue Code.
10–308.
(b) The subtraction under subsection (a) of this section includes the amounts
allowed to be subtracted for an individual under:
(6) § 10–208(bb) of this title (Trade or business expenses of [medical] A
LICENSED OR REGISTER ED cannabis grower, processor, dispensary, or any other
cannabis establishment).
13–203.
(c) Tax information may be disclosed to:
(10) the Alcohol [and], Tobacco, AND CANNABIS Commission;
(14) a hospital, the Health Services Cost Review Commission, the
Department of Human Services, the Maryland Department of Health, and the State
Department of Education, to the extent necessary to administer § 19–214.4 of the Health –
General Article; [and]
(15) subject to subsection (e) of this section, the Maryland Small Business
Retirement Savings Board and its authorized contractors for the purpose of administering
the Maryland Small Business Retirement Savings Program and Trust as authorized under
Title 12 of the Labor and Employment Article; AND
(16) THE MARYLAND CANNABIS ADMINISTRATION .
Chapter 254 of the Acts of 2023
SECTION 10. AND BE IT FURTHER ENACTED, That, notwithstanding any other
provision of law, from the date this Act takes effect to December 31, [2023] 2024, both
inclusive, the Maryland Cannabis Administration is exempt from procurement
requirements under the State Finance and Procurement Article if the procurement is for: Ch. 241 2024 LAWS OF MARYLAND
– 20 –
(1) banking services for the Administration to collect fees and tax revenue;
(2) banking services to help support cannabis businesses to transition from
an all cash system;
(3) a consultant to support the Administration in the process for cannabis
licensure, including services related to investigations and the financial or criminal history
review of applicants;
(4) a consultant to provide technical assistance to social equity applicants;
(5) communication services for public and consumer education campaigns
on cannabis laws and regulations and potential health and safety risks associated with
cannabis use; and
(6) establishing a State cannabis testing laboratory at a preexisting site.
Chapter 255 of the Acts of 2023
SECTION 10. AND BE IT FURTHER ENACTED, That, notwithstanding any other
provision of law, from the date this Act takes effect to December 31, [2023] 2024, both
inclusive, the Maryland Cannabis Administration is exempt from procurement
requirements under the State Finance and Procurement Article if the procurement is for:
(1) banking services for the Administration to collect fees and tax revenue;
(2) banking services to help support cannabis businesses to transition from
an all cash system;
(3) a consultant to support the Administration in the process for cannabis
licensure, including services related to investigations and the financial or criminal history
review of applicants;
(4) a consultant to provide technical assistance to social equity applicants;
(5) communication services for public and consumer education campaigns
on cannabis laws and regulations and potential health and safety risks associated with
cannabis use; and
(6) establishing a State cannabis testing laboratory at a preexisting site.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergency
measure, is necessary for the immediate preservation of the public health or safety, has
been passed by a yea and nay vote supported by three–fifths of all the members elected to WES MOORE, Governor Ch. 241
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each of the two Houses of the General Assembly, and shall take effect from the date it is
enacted.
Approved by the Governor, April 25, 2024.