| Old | New | Differences | |
|---|---|---|---|
| 1 | 1 | ||
| 2 | 2 | ||
| 3 | 3 | EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. | |
| 4 | 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 | 5 | *sb0537* | |
| 9 | 6 | ||
| 10 | 7 | SENATE BILL 537 | |
| 11 | 8 | A3, L1 4lr3360 | |
| 12 | - | CF | |
| 9 | + | CF 4lr2602 | |
| 13 | 10 | By: Senator Feldman | |
| 14 | 11 | Introduced and read first time: January 24, 2024 | |
| 15 | 12 | Assigned to: Finance | |
| 16 | - | Committee Report: Favorable with amendments | |
| 17 | - | Senate action: Adopted with floor amendments | |
| 18 | - | Read second time: March 8, 2024 | |
| 19 | 13 | ||
| 20 | - | ||
| 14 | + | A BILL ENTITLED | |
| 21 | 15 | ||
| 22 | 16 | AN ACT concerning 1 | |
| 23 | 17 | ||
| 24 | 18 | Cannabis – Licensee Locations – Restrictions 2 | |
| 25 | 19 | ||
| 26 | 20 | FOR the purpose of altering the distance restrictions applicable to a licensed cannabis 3 | |
| 27 | 21 | dispensary; prohibiting a political subdivision from establishing certain zoning 4 | |
| 28 | 22 | requirements for licensed cannabis dispensaries and certain licensed cannabis 5 | |
| 29 | 23 | growers that are more restrictive than certain zoning restrictions applicable to 6 | |
| 30 | 24 | certain other entities; clarifying the authority of a political subdivision to alter 7 | |
| 31 | - | certain distance requirements; requiring a political subdivision to grant a waiver to 8 | |
| 32 | - | certain zoning requirements to a licensed cannabis dispensary that was operating 9 | |
| 33 | - | before a certain date; and generally relating to cannabis licensees and zoning 10 | |
| 34 | - | restrictions. 11 | |
| 25 | + | certain distance requirements; and generally relating to cannabis licensees and 8 | |
| 26 | + | zoning restrictions. 9 | |
| 35 | 27 | ||
| 36 | - | BY repealing and reenacting, without amendments, | |
| 37 | - | Article – Alcoholic Beverages and Cannabis | |
| 38 | - | Section 1–101(a) and (dd) | |
| 39 | - | Annotated Code of Maryland | |
| 40 | - | (2016 Volume and 2023 Supplement) | |
| 28 | + | BY repealing and reenacting, without amendments, 10 | |
| 29 | + | Article – Alcoholic Beverages and Cannabis 11 | |
| 30 | + | Section 1–101(a) and (dd) 12 | |
| 31 | + | Annotated Code of Maryland 13 | |
| 32 | + | (2016 Volume and 2023 Supplement) 14 | |
| 41 | 33 | ||
| 42 | - | BY repealing and reenacting, with amendments, 17 | |
| 43 | - | Article – Alcoholic Beverages and Cannabis 18 | |
| 44 | - | Section 36–405 and 36–410 19 | |
| 45 | - | Annotated Code of Maryland 20 | |
| 46 | - | (2016 Volume and 2023 Supplement) 21 | |
| 34 | + | BY repealing and reenacting, with amendments, 15 | |
| 35 | + | Article – Alcoholic Beverages and Cannabis 16 | |
| 36 | + | Section 36–405 and 36–410 17 | |
| 37 | + | Annotated Code of Maryland 18 | |
| 38 | + | (2016 Volume and 2023 Supplement) 19 | |
| 39 | + | ||
| 40 | + | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20 | |
| 41 | + | That the Laws of Maryland read as follows: 21 | |
| 42 | + | ||
| 43 | + | Article – Alcoholic Beverages and Cannabis 22 | |
| 44 | + | ||
| 45 | + | 1–101. 23 | |
| 46 | + | ||
| 47 | + | (a) In this article the following words have the meanings indicated. 24 | |
| 47 | 48 | 2 SENATE BILL 537 | |
| 48 | 49 | ||
| 49 | 50 | ||
| 50 | - | | |
| 51 | - | ||
| 51 | + | (dd) (1) “Retail dealer” means a person that sells an alcoholic beverage to any 1 | |
| 52 | + | person other than a license holder. 2 | |
| 52 | 53 | ||
| 53 | - | ||
| 54 | + | (2) “Retail dealer” includes a county dispensary. 3 | |
| 54 | 55 | ||
| 55 | - | ||
| 56 | + | 36–405. 4 | |
| 56 | 57 | ||
| 57 | - | (a) In this article the following words have the meanings indicated. 5 | |
| 58 | + | (a) IN THIS SECTION, “UNDULY BURDEN ” INCLUDES IMPOSING A ZONING 5 | |
| 59 | + | REQUIREMENT OR RESTR ICTION ON THE USE OF PROPERTY BY A CANNAB IS 6 | |
| 60 | + | LICENSEE THAT IS MOR E RESTRICTIVE THAN T HE REQUIREMENTS ESTABLI SHED 7 | |
| 61 | + | UNDER § 36–410 OF THIS SUBTITLE. 8 | |
| 58 | 62 | ||
| 59 | - | (dd) (1) “Retail dealer” means a person that sells an alcoholic beverage to any 6 | |
| 60 | - | person other than a license holder. 7 | |
| 63 | + | (B) A political subdivision may: 9 | |
| 61 | 64 | ||
| 62 | - | ( | |
| 65 | + | (1) establish reasonable zoning requirements for cannabis businesses; and 10 | |
| 63 | 66 | ||
| 64 | - | 36–405. 9 | |
| 67 | + | (2) decide how to distribute its allocation of revenue under § 2–1302.2 of 11 | |
| 68 | + | the Tax – General Article. 12 | |
| 65 | 69 | ||
| 66 | - | (a) IN THIS SECTION, “UNDULY BURDEN ” INCLUDES IMPOSING A ZONING 10 | |
| 67 | - | REQUIREMENT OR RE STRICTION ON THE USE OF PROPERTY BY A CAN NABIS 11 | |
| 68 | - | LICENSEE THAT IS MOR E RESTRICTIVE THAN T HE REQUIREMENTS ESTA BLISHED 12 | |
| 69 | - | UNDER § 36–410 OF THIS SUBTITLE. 13 | |
| 70 | + | [(b)] (C) A political subdivision may not: 13 | |
| 70 | 71 | ||
| 71 | - | (B) A political subdivision may: 14 | |
| 72 | + | (1) establish zoning or other requirements that unduly burden a cannabis 14 | |
| 73 | + | licensee; 15 | |
| 72 | 74 | ||
| 73 | - | (1) establish reasonable zoning requirements for cannabis businesses; and 15 | |
| 75 | + | (2) impose licensing, operating, or other fees or requirements on a cannabis 16 | |
| 76 | + | licensee that are disproportionately greater or more burdensome than those imposed on 17 | |
| 77 | + | other businesses with a similar impact on the area where the cannabis licensee is located; 18 | |
| 74 | 78 | ||
| 75 | - | ( | |
| 76 | - | ||
| 79 | + | (3) prohibit transportation through or deliveries within the political 19 | |
| 80 | + | subdivision by cannabis businesses located in other political subdivisions; 20 | |
| 77 | 81 | ||
| 78 | - | [(b)] (C) A political subdivision may not: 18 | |
| 82 | + | (4) prevent an entity whose license may be converted under § 21 | |
| 83 | + | 36–401(b)(1)(ii) of this subtitle and that is in compliance with all relevant medical cannabis 22 | |
| 84 | + | regulations from being granted the license conversion; or 23 | |
| 79 | 85 | ||
| 80 | - | (1) establish zoning or other requirements that unduly burden a cannabis 19 | |
| 81 | - | licensee; 20 | |
| 86 | + | (5) negotiate or enter into an agreement with a cannabis licensee or an 24 | |
| 87 | + | applicant for a cannabis license requiring that the cannabis licensee or applicant provide 25 | |
| 88 | + | money, donations, in–kind contributions, services, or anything of value to the political 26 | |
| 89 | + | subdivision. 27 | |
| 82 | 90 | ||
| 83 | - | ( | |
| 84 | - | ||
| 85 | - | ||
| 91 | + | [(c)] (D) The use of a facility by a cannabis licensee is not required to be 28 | |
| 92 | + | submitted to, or approved by, a county or municipal zoning board, authority, or unit if the 29 | |
| 93 | + | facility: 30 | |
| 86 | 94 | ||
| 87 | - | (3) prohibit transportation through or deliveries within the political 24 | |
| 88 | - | subdivision by cannabis businesses located in other political subdivisions; 25 | |
| 89 | - | ||
| 90 | - | (4) prevent an entity whose license may be converted under § 26 | |
| 91 | - | 36–401(b)(1)(ii) of this subtitle and that is in compliance with all relevant medical cannabis 27 | |
| 92 | - | regulations from being granted the license conversion; or 28 | |
| 93 | - | ||
| 94 | - | (5) negotiate or enter into an agreement with a cannabis licensee or an 29 | |
| 95 | - | applicant for a cannabis license requiring that the cannabis licensee or applicant provide 30 SENATE BILL 537 3 | |
| 95 | + | (1) was properly zoned and operating on or before January 1, 2023; or 31 | |
| 96 | + | SENATE BILL 537 3 | |
| 96 | 97 | ||
| 97 | 98 | ||
| 98 | - | money, donations, in–kind contributions, services, or anything of value to the political 1 | |
| 99 | - | subdivision. 2 | |
| 99 | + | (2) is used by a grower, processor, or dispensary that: 1 | |
| 100 | 100 | ||
| 101 | - | [(c)] (D) The use of a facility by a cannabis licensee is not required to be 3 | |
| 102 | - | submitted to, or approved by, a county or municipal zoning board, authority, or unit if the 4 | |
| 103 | - | facility: 5 | |
| 101 | + | (i) held a Stage One Preapproval for a license before October 1, 2 | |
| 102 | + | 2022; and 3 | |
| 104 | 103 | ||
| 105 | - | (1) THE FACILITY was properly zoned and operating on or before January 6 | |
| 106 | - | 1, 2023; or 7 | |
| 104 | + | (ii) was not operational before October 1, 2022. 4 | |
| 107 | 105 | ||
| 108 | - | ( | |
| 109 | - | ||
| 106 | + | [(d)] (E) A political subdivision or special taxing district may not impose a tax 5 | |
| 107 | + | on cannabis. 6 | |
| 110 | 108 | ||
| 111 | - | (i) held a Stage One Preapproval for a license before October 1, 10 | |
| 112 | - | 2022; and 11 | |
| 109 | + | 36–410. 7 | |
| 113 | 110 | ||
| 114 | - | ( | |
| 115 | - | ||
| 111 | + | (a) Beginning July 1, 2023, a cannabis licensee that is operating a dispensary 8 | |
| 112 | + | shall: 9 | |
| 116 | 113 | ||
| 117 | - | ||
| 118 | - | ||
| 114 | + | (1) ensure that it has adequate supply for qualifying patients and 10 | |
| 115 | + | caregivers; 11 | |
| 119 | 116 | ||
| 120 | - | 36–410. 16 | |
| 117 | + | (2) set aside operating hours or dedicated service lines to serve only 12 | |
| 118 | + | qualifying patients and caregivers; and 13 | |
| 121 | 119 | ||
| 122 | - | (a) Beginning July 1, 2023, a cannabis licensee that is operating a dispensary 17 | |
| 123 | - | shall: 18 | |
| 120 | + | (3) ensure that at least 25% of cannabis and cannabis products in the 14 | |
| 121 | + | dispensary are from social equity licensees and growers and processors that do not share 15 | |
| 122 | + | common ownership with the dispensary. 16 | |
| 124 | 123 | ||
| 125 | - | ( | |
| 126 | - | ||
| 124 | + | (b) Except as provided in subsection (d) of this section, a licensed dispensary may 17 | |
| 125 | + | not locate within: 18 | |
| 127 | 126 | ||
| 128 | - | (2) set aside operating hours or dedicated service lines to serve only 21 | |
| 129 | - | qualifying patients and caregivers; and 22 | |
| 127 | + | (1) 500 feet of: 19 | |
| 130 | 128 | ||
| 131 | - | ( | |
| 132 | - | ||
| 133 | - | ||
| 129 | + | (i) a pre–existing primary or secondary school in the State, or a 20 | |
| 130 | + | licensed child care center or registered family child care home under Title 9.5 of the 21 | |
| 131 | + | Education Article; or 22 | |
| 134 | 132 | ||
| 135 | - | ( | |
| 136 | - | ||
| 133 | + | (ii) a PRE–EXISTING playground, recreation center, library, [or] 23 | |
| 134 | + | public park, OR PLACE OF WORSHIP ; or 24 | |
| 137 | 135 | ||
| 138 | - | ( | |
| 136 | + | (2) 1,000 feet of another dispensary under this title. 25 | |
| 139 | 137 | ||
| 140 | - | (i) a pre–existing primary or secondary school in the State, or a 29 | |
| 141 | - | licensed child care center or registered family child care home under Title 9.5 of the 30 | |
| 142 | - | Education Article; or 31 | |
| 138 | + | (c) A political subdivision may adopt an ordinance reducing, BUT NOT 26 | |
| 139 | + | INCREASING, the distance requirements under subsection (b) of this section. 27 | |
| 140 | + | ||
| 141 | + | (d) The distance requirements under subsection (b) of this section do not apply to 28 | |
| 142 | + | a dispensary license that was: 29 | |
| 143 | + | ||
| 144 | + | (1) converted under § 36–401(b)(1)(ii) of this subtitle; and 30 | |
| 143 | 145 | 4 SENATE BILL 537 | |
| 144 | 146 | ||
| 145 | 147 | ||
| 146 | - | (ii) a PRE–EXISTING playground, recreation center, library, [or] 1 | |
| 147 | - | public park, OR PLACE OF WORSHIP ; or 2 | |
| 148 | + | (2) properly zoned and operating before July 1, 2023. 1 | |
| 148 | 149 | ||
| 149 | - | (2) 1,000 feet of another dispensary under this title. 3 | |
| 150 | + | (E) A POLITICAL SUBDIVISIO N MAY NOT ADOPT AN O RDINANCE 2 | |
| 151 | + | ESTABLISHING ZONING REQUIREMENTS FOR LIC ENSED DISPENSARIES T HAT ARE 3 | |
| 152 | + | MORE RESTRI CTIVE THAN ZONING RE QUIREMENTS FOR A RET AIL DEALER LICENSED 4 | |
| 153 | + | UNDER THIS ARTICLE . 5 | |
| 150 | 154 | ||
| 151 | - | (c) (1) A EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 4 | |
| 152 | - | A political subdivision may adopt an ordinance reducing, BUT NOT INCREASING , the 5 | |
| 153 | - | distance requirements under subsection (b) of this section. 6 | |
| 155 | + | (F) A POLITICAL SUBDIVISIO N MAY NOT ADOPT AN O RDINANCE 6 | |
| 156 | + | ESTABLISHING A ZONIN G REQUIREMENT FOR A LICENSED GROWER CULT IVATING 7 | |
| 157 | + | CANNABIS OUTDOORS TH AT IS MORE RESTRICTI VE THAN ANY ZONING 8 | |
| 158 | + | REQUIREMENTS THAT EX ISTED ON JUNE 30, 2023, GOVERNING A HEMP FAR M 9 | |
| 159 | + | REGISTERED UNDER TITLE 14 OF THE AGRICULTURE ARTICLE IN THE POLITI CAL 10 | |
| 160 | + | SUBDIVISION. 11 | |
| 154 | 161 | ||
| 155 | - | (2) A POLITICAL SUBDIVISIO N MAY BY ORDINANCE I NCREASE THE 7 | |
| 156 | - | DISTANCE LIMITATION FOR DISPENSARIES UND ER SUBSECTION (B)(2) OF THIS 8 | |
| 157 | - | SECTION TO NOT MORE THAN 2,000 FEET ONE–HALF MILE. 9 | |
| 158 | - | ||
| 159 | - | (d) The distance requirements under subsection (b) of this section do not apply to 10 | |
| 160 | - | a dispensary license that was: 11 | |
| 161 | - | ||
| 162 | - | (1) converted under § 36–401(b)(1)(ii) of this subtitle; and 12 | |
| 163 | - | ||
| 164 | - | (2) properly zoned and operating before July 1, 2023. 13 | |
| 165 | - | ||
| 166 | - | (E) A POLITICAL SUBDIVISIO N MAY NOT ADOPT AN O RDINANCE 14 | |
| 167 | - | ESTABLISHING ZONING REQUIREMENTS FOR LIC ENSED DISPENSARIES T HAT ARE 15 | |
| 168 | - | MORE RESTRICTIVE THA N ZONING REQUIREMENT S FOR A RETAIL DEALE R LICENSED 16 | |
| 169 | - | UNDER THIS AR TICLE. 17 | |
| 170 | - | ||
| 171 | - | (F) A POLITICAL SUBDIVISIO N MAY NOT ADOPT AN O RDINANCE 18 | |
| 172 | - | ESTABLISHING A ZONIN G REQUIREMENT FOR A LICENSED GROWER CULT IVATING 19 | |
| 173 | - | CANNABIS EXCLUSIVELY OUTDOORS IN AN AREA ZONED ONL Y FOR AGRICULTURAL 20 | |
| 174 | - | USE THAT IS MORE RESTRIC TIVE THAN ANY ZONING REQUIREMENTS THAT EX ISTED 21 | |
| 175 | - | ON JUNE 30, 2023, GOVERNING A HEMP FAR M REGISTERED UNDER TITLE 14 OF THE 22 | |
| 176 | - | AGRICULTURE ARTICLE IN THE POLITI CAL SUBDIVISION . 23 | |
| 177 | - | ||
| 178 | - | (G) A POLITICAL SUBDIVISIO N MAY: 24 | |
| 179 | - | ||
| 180 | - | (1) BY ORDINANCE , ESTABLISH A DISTANCE LIMITATION FOR 25 | |
| 181 | - | DISPENSARIES OF UP TO 100 FEET FROM AN AREA ZO NED FOR RESIDENTIAL USE; OR 26 | |
| 182 | - | ||
| 183 | - | (2) APPLY TO DISPENSARIE S THE DISTANCE LIMIT ATION FOR 27 | |
| 184 | - | LICENSED ALCOHOLIC B EVERAGE RETAILERS FR OM AN AREA ZONED FOR 28 | |
| 185 | - | RESIDENTIAL USE . 29 | |
| 186 | - | ||
| 187 | - | (H) A POLITICAL SUBDIVISIO N SHALL GRANT A WAIV ER TO AN ORDINANCE 30 | |
| 188 | - | THAT PROVIDES A DIST ANCE REQUIREMENT FOR DISPENSARIES UNDER T HIS 31 | |
| 189 | - | SECTION FOR A LICENS ED DISPENSARY THAT W AS IN OPERATION BEFO RE APRIL 1, 32 | |
| 190 | - | 2024. 33 SENATE BILL 537 5 | |
| 162 | + | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 12 | |
| 163 | + | 1, 2024. 13 | |
| 191 | 164 | ||
| 192 | 165 | ||
| 193 | - | ||
| 194 | - | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1 | |
| 195 | - | 1, 2024. 2 | |
| 196 | - | ||
| 197 | - | ||
| 198 | - | ||
| 199 | - | ||
| 200 | - | Approved: | |
| 201 | - | ________________________________________________________________________________ | |
| 202 | - | Governor. | |
| 203 | - | ________________________________________________________________________________ | |
| 204 | - | President of the Senate. | |
| 205 | - | ________________________________________________________________________________ | |
| 206 | - | Speaker of the House of Delegates. |