MD
Maryland House Bill HB272

Maryland 2024 Regular Session

Maryland House Bill HB272 Compare Versions

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1- WES MOORE, Governor Ch. 242
21
3-– 1 –
4-Chapter 242
5-(House Bill 272)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0272*
89
9-Cannabis Licensing and Registration – Use of Straw Ownership – Prohibition
10+HOUSE BILL 272
11+A3 4lr0849
1012
11-FOR the purpose of prohibiting a person from applying for or holding a cannabis license or
12-registration under certain circumstances if an ownership interest in the license or
13-registration is for the limited purpose of satisfying certain requirements of
14-registration or licensure; requiring the Maryland Cannabis Administration to deny
15-a certain application or revoke a cannabis license or registration if the applicant,
16-licensee, or registrant is determined by the Administration to be in violation of this
17-Act or convicted of a violation of this Act; and generally relating to straw ownership
18-and cannabis licensing and registration.
13+By: Delegate Grammer
14+Introduced and read first time: January 12, 2024
15+Assigned to: Economic Matters
16+Committee Report: Favorable with amendments
17+House action: Adopted
18+Read second time: March 3, 2024
1919
20-BY repealing and reenacting, without amendments,
21- Article – Alcoholic Beverages and Cannabis
22-Section 36–101(a) and (o)
23- Annotated Code of Maryland
24- (2016 Volume and 2023 Supplement)
20+CHAPTER ______
2521
26-BY adding to
27- Article – Alcoholic Beverages and Cannabis
28-Section 36–1103
29- Annotated Code of Maryland
30- (2016 Volume and 2023 Supplement)
22+AN ACT concerning 1
3123
32- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
33-That the Laws of Maryland read as follows:
24+Cannabis Licensing and Registration – Use of Straw Ownership – Prohibition 2
3425
35-Article – Alcoholic Beverages and Cannabis
26+FOR the purpose of prohibiting a person from applying for or holding a cannabis license or 3
27+registration under certain circumstances if an ownership interest in the license or 4
28+registration is for the limited purpose of satisfying certain requirements of 5
29+registration or licensure; requiring the Maryland Cannabis Administration to deny 6
30+a certain application or revoke a cannabis license or registration if the applicant, 7
31+licensee, or registrant is determined by the Administration to be in violation of this 8
32+Act or convicted of a violation of this Act; and generally relating to straw ownership 9
33+and cannabis licensing and registration. 10
3634
37-36–101.
35+BY repealing and reenacting, without amendments, 11
36+ Article – Alcoholic Beverages and Cannabis 12
37+Section 36–101(a) and (o) 13
38+ Annotated Code of Maryland 14
39+ (2016 Volume and 2023 Supplement) 15
3840
39- (a) In this title the following words have the meanings indicated.
41+BY adding to 16
42+ Article – Alcoholic Beverages and Cannabis 17
43+Section 36–1103 18
44+ Annotated Code of Maryland 19
45+ (2016 Volume and 2023 Supplement) 20
4046
41- (o) (1) “Control” means:
47+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
48+That the Laws of Maryland read as follows: 22 2 HOUSE BILL 272
4249
43- (i) the decision–making authority over the management,
44-operations, or policies that guide a business; or
4550
46- (ii) authority over the operation of the technical aspects of a
47-business.
4851
49- (2) “Control” includes: Ch. 242 2024 LAWS OF MARYLAND
52+Article – Alcoholic Beverages and Cannabis 1
5053
51-– 2 –
54+36–101. 2
5255
53- (i) holding a right to veto significant events;
56+ (a) In this title the following words have the meanings indicated. 3
5457
55- (ii) the right or authority to make or veto decisions regarding
56-operations and strategic planning, capital allocations, acquisitions, and divestments;
58+ (o) (1) “Control” means: 4
5759
58- (iii) the right or authority to appoint or remove directors,
59-corporate–level officers, or their equivalent;
60+ (i) the decision–making authority over the management, 5
61+operations, or policies that guide a business; or 6
6062
61- (iv) the right or authority to make major marketing, production, and
62-financial decisions; and
63+ (ii) authority over the operation of the technical aspects of a 7
64+business. 8
6365
64- (v) the right or authority to execute exclusive contracts or significant
65-contracts in the aggregate of $10,000 or greater on behalf of the licensee.
66+ (2) “Control” includes: 9
6667
67-36–1103.
68+ (i) holding a right to veto significant events; 10
6869
69- (A) IN THIS SECTION , “GENUINE OWNERSHIP ” MEANS AN OWNERSHIP
70-INTEREST IN AN APPLI CANT, A CANNABIS LICENSEE , OR A REGISTRANT THAT IS
71-EVIDENCED BY RECORD OWNERSHIP IN WHICH T HE OWNER, REGARDLESS OF THE
72-AMOUNT OF CAPITAL OR ASSETS THAT THE OWNE R CONTRIBUTES TO THE
73-APPLICANT, LICENSEE, OR REGISTRANT , ENJOYS THE CUSTOMARY INCIDENTS OF
74-OWNERSHIP AND SHARES IN THE PROFITS AND L OSSES OF THE CANNABI S LICENSE
75-OR REGISTRATION PROP ORTIONATE TO THE PER CENTAGE OF THE OWNER ’S
76-INTEREST IN THE CANN ABIS LICENSE OR REGI STRATION.
70+ (ii) the right or authority to make or veto decisions regarding 11
71+operations and strategic planning, capital allocations, acquisitions, and divestments; 12
7772
78- (B) A PERSON MAY NOT APPLY FOR OR HOL D A CANNABIS LICENSE OR
79-REGISTRATION UNDER T HIS TITLE IF AN OWNE RSHIP INTEREST IN TH E LICENSE OR
80-REGISTRATION IS :
73+ (iii) the right or authority to appoint or remove directors, 13
74+corporate–level officers, or their equivalent; 14
8175
82- (1) NOMINAL OR WITHOUT T HE BENEFITS AND RISK S OF GENUINE
83-OWNERSHIP OR CONTROL; AND
76+ (iv) the right or authority to make major marketing, production, and 15
77+financial decisions; and 16
8478
85- (2) FOR THE LIMITED PURP OSE OF SATISFYING THE REQUIRE MENTS
86-UNDER THIS TITLE FOR CANNABIS LICENSEES O R REGISTRANTS , INCLUDING
87-REQUIREMENTS FOR SOC IAL EQUITY LICENSEES OR REGISTRANTS .
79+ (v) the right or authority to execute exclusive contracts or significant 17
80+contracts in the aggregate of $10,000 or greater on behalf of the licensee. 18
8881
89- (B) (C) A PERSON WHO VIOLATES SUBSECTION (A) (B) OF THIS SECTION
90-IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS SUBJECT TO A FINE OF NOT
91-MORE THAN $2,500 OR IMPRISONMENT FOR NOT MORE THAN 1 YEAR OR BOTH.
82+36–1103. 19
9283
93- (C) (D) SUBJECT TO THE HEARIN G PROVISIONS OF § 36–202 OF THIS
94-TITLE, THE ADMINISTRATION SHALL DENY AN APPLICATION FOR A CANNABIS WES MOORE, Governor Ch. 242
84+ (A) IN THIS SECTION , “GENUINE OWNERSHIP ” MEANS AN OWNERSHIP 20
85+INTEREST IN AN APPLI CANT, A CANNABIS LICENSEE , OR A REGISTRANT THAT IS 21
86+EVIDENCED BY RECORD OWNERSHIP IN WHICH T HE OWNER, REGARDLESS OF THE 22
87+AMOUNT OF CAPITAL OR ASSETS THAT THE OWNE R CONTRIBUTES TO THE 23
88+APPLICANT, LICENSEE, OR REGISTRANT , ENJOYS THE CUSTOMARY INCIDENTS OF 24
89+OWNERSHIP AND SHARES IN THE PROFITS AND L OSSES OF THE CANNABI S LICENSE 25
90+OR REGISTRATION PROP ORTIONATE TO THE PER CENTAGE OF THE OWNER ’S 26
91+INTEREST IN THE CANN ABIS LICENSE OR REGI STRATION. 27
9592
96-– 3 –
97-LICENSE OR REGISTRAT ION OR REVOKE A CANNABIS LICENSE OR REGISTRAT ION
98-UNDER THIS TITLE IF THE APPLICANT , CANNABIS LICENSEE , OR REGISTRANT IS :
93+ (B) A PERSON MAY NOT APPLY FOR OR HOL D A CANNABIS LICENSE OR 28
94+REGISTRATION UNDER T HIS TITLE IF AN OWNE RSHIP INTEREST IN TH E LICENSE OR 29
95+REGISTRATION IS : 30
96+ HOUSE BILL 272 3
9997
100- (1) DETERMINED BY THE ADMINISTRATION TO BE IN VIOLATION OF
101-SUBSECTION (B) OF THIS SECTION; OR
10298
103- (2) CONVICTED OF VIOLATI NG SUBSECTION (A) (B) OF THIS SECTION.
99+ (1) NOMINAL OR WITHOUT T HE BENEFITS AND RISK S OF GENUINE 1
100+OWNERSHIP OR CONTROL; AND 2
104101
105- SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
106-October June 1, 2024.
102+ (2) FOR THE LIMITED PURP OSE OF SATISFYING THE REQUIRE MENTS 3
103+UNDER THIS TITLE FOR CANNABIS LICENSEES O R REGISTRANTS , INCLUDING 4
104+REQUIREMENTS FOR SOC IAL EQUITY LICENSEES OR REGISTRANTS . 5
107105
108-Approved by the Governor, April 25, 2024.
106+ (B) (C) A PERSON WHO VIOLATES SUBSECTION (A) (B) OF THIS SECTION 6
107+IS GUILTY OF A MISDE MEANOR AND ON CONVIC TION IS SUBJECT TO A FINE OF NOT 7
108+MORE THAN $2,500 OR IMPRISONMENT FOR NOT MORE THAN 1 YEAR OR BOTH. 8
109+
110+ (C) (D) SUBJECT TO THE HEARIN G PROVISIONS OF § 36–202 OF THIS 9
111+TITLE, THE ADMINISTRATION SHALL DENY AN APPLICATION FOR A CANNABIS 10
112+LICENSE OR REGISTRAT ION OR REVOKE A CANNABIS LICENSE OR REGISTRAT ION 11
113+UNDER THIS TITLE IF THE APPLICANT , CANNABIS LICENSEE , OR REGISTRANT IS : 12
114+
115+ (1) DETERMINED BY THE ADMINISTRATION TO BE IN VIOLATION OF 13
116+SUBSECTION (B) OF THIS SECTION; OR 14
117+
118+ (2) CONVICTED OF VIOLATI NG SUBSECTION (A) (B) OF THIS SECTION. 15
119+
120+ SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
121+October June 1, 2024. 17
122+
123+
124+
125+
126+Approved:
127+________________________________________________________________________________
128+ Governor.
129+________________________________________________________________________________
130+ Speaker of the House of Delegates.
131+________________________________________________________________________________
132+ President of the Senate.