EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0537*
SENATE BILL 537
A3, L1 4lr3360
CF 4lr2602
By: Senator Feldman
Introduced and read first time: January 24, 2024
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Cannabis – Licensee Locations – Restrictions 2
FOR the purpose of altering the distance restrictions applicable to a licensed cannabis 3
dispensary; prohibiting a political subdivision from establishing certain zoning 4
requirements for licensed cannabis dispensaries and certain licensed cannabis 5
growers that are more restrictive than certain zoning restrictions applicable to 6
certain other entities; clarifying the authority of a political subdivision to alter 7
certain distance requirements; and generally relating to cannabis licensees and 8
zoning restrictions. 9
BY repealing and reenacting, without amendments, 10
Article – Alcoholic Beverages and Cannabis 11
Section 1–101(a) and (dd) 12
Annotated Code of Maryland 13
(2016 Volume and 2023 Supplement) 14
BY repealing and reenacting, with amendments, 15
Article – Alcoholic Beverages and Cannabis 16
Section 36–405 and 36–410 17
Annotated Code of Maryland 18
(2016 Volume and 2023 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Alcoholic Beverages and Cannabis 22
1–101. 23
(a) In this article the following words have the meanings indicated. 24
2 SENATE BILL 537
(dd) (1) “Retail dealer” means a person that sells an alcoholic beverage to any 1
person other than a license holder. 2
(2) “Retail dealer” includes a county dispensary. 3
36–405. 4
(a) IN THIS SECTION, “UNDULY BURDEN ” INCLUDES IMPOSING A ZONING 5
REQUIREMENT OR RESTR ICTION ON THE USE OF PROPERTY BY A CANNAB IS 6
LICENSEE THAT IS MOR E RESTRICTIVE THAN T HE REQUIREMENTS ESTABLI SHED 7
UNDER § 36–410 OF THIS SUBTITLE. 8
(B) A political subdivision may: 9
(1) establish reasonable zoning requirements for cannabis businesses; and 10
(2) decide how to distribute its allocation of revenue under § 2–1302.2 of 11
the Tax – General Article. 12
[(b)] (C) A political subdivision may not: 13
(1) establish zoning or other requirements that unduly burden a cannabis 14
licensee; 15
(2) impose licensing, operating, or other fees or requirements on a cannabis 16
licensee that are disproportionately greater or more burdensome than those imposed on 17
other businesses with a similar impact on the area where the cannabis licensee is located; 18
(3) prohibit transportation through or deliveries within the political 19
subdivision by cannabis businesses located in other political subdivisions; 20
(4) prevent an entity whose license may be converted under § 21
36–401(b)(1)(ii) of this subtitle and that is in compliance with all relevant medical cannabis 22
regulations from being granted the license conversion; or 23
(5) negotiate or enter into an agreement with a cannabis licensee or an 24
applicant for a cannabis license requiring that the cannabis licensee or applicant provide 25
money, donations, in–kind contributions, services, or anything of value to the political 26
subdivision. 27
[(c)] (D) The use of a facility by a cannabis licensee is not required to be 28
submitted to, or approved by, a county or municipal zoning board, authority, or unit if the 29
facility: 30
(1) was properly zoned and operating on or before January 1, 2023; or 31
SENATE BILL 537 3
(2) is used by a grower, processor, or dispensary that: 1
(i) held a Stage One Preapproval for a license before October 1, 2
2022; and 3
(ii) was not operational before October 1, 2022. 4
[(d)] (E) A political subdivision or special taxing district may not impose a tax 5
on cannabis. 6
36–410. 7
(a) Beginning July 1, 2023, a cannabis licensee that is operating a dispensary 8
shall: 9
(1) ensure that it has adequate supply for qualifying patients and 10
caregivers; 11
(2) set aside operating hours or dedicated service lines to serve only 12
qualifying patients and caregivers; and 13
(3) ensure that at least 25% of cannabis and cannabis products in the 14
dispensary are from social equity licensees and growers and processors that do not share 15
common ownership with the dispensary. 16
(b) Except as provided in subsection (d) of this section, a licensed dispensary may 17
not locate within: 18
(1) 500 feet of: 19
(i) a pre–existing primary or secondary school in the State, or a 20
licensed child care center or registered family child care home under Title 9.5 of the 21
Education Article; or 22
(ii) a PRE–EXISTING playground, recreation center, library, [or] 23
public park, OR PLACE OF WORSHIP ; or 24
(2) 1,000 feet of another dispensary under this title. 25
(c) A political subdivision may adopt an ordinance reducing, BUT NOT 26
INCREASING, the distance requirements under subsection (b) of this section. 27
(d) The distance requirements under subsection (b) of this section do not apply to 28
a dispensary license that was: 29
(1) converted under § 36–401(b)(1)(ii) of this subtitle; and 30
4 SENATE BILL 537
(2) properly zoned and operating before July 1, 2023. 1
(E) A POLITICAL SUBDIVISIO N MAY NOT ADOPT AN O RDINANCE 2
ESTABLISHING ZONING REQUIREMENTS FOR LIC ENSED DISPENSARIES T HAT ARE 3
MORE RESTRI CTIVE THAN ZONING RE QUIREMENTS FOR A RET AIL DEALER LICENSED 4
UNDER THIS ARTICLE . 5
(F) A POLITICAL SUBDIVISIO N MAY NOT ADOPT AN O RDINANCE 6
ESTABLISHING A ZONIN G REQUIREMENT FOR A LICENSED GROWER CULT IVATING 7
CANNABIS OUTDOORS TH AT IS MORE RESTRICTI VE THAN ANY ZONING 8
REQUIREMENTS THAT EX ISTED ON JUNE 30, 2023, GOVERNING A HEMP FAR M 9
REGISTERED UNDER TITLE 14 OF THE AGRICULTURE ARTICLE IN THE POLITI CAL 10
SUBDIVISION. 11
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 12
1, 2024. 13