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.
*sb0537*
SENATE BILL 537
A3, L1 4lr3360
CF HB 805
By: Senator Feldman
Introduced and read first time: January 24, 2024
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted with floor amendments
Read second time: March 8, 2024
CHAPTER ______
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; requiring a political subdivision to grant a waiver to 8
certain zoning requirements to a licensed cannabis dispensary that was operating 9
before a certain date; and generally relating to cannabis licensees and zoning 10
restrictions. 11
BY repealing and reenacting, without amendments, 12
Article – Alcoholic Beverages and Cannabis 13
Section 1–101(a) and (dd) 14
Annotated Code of Maryland 15
(2016 Volume and 2023 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Alcoholic Beverages and Cannabis 18
Section 36–405 and 36–410 19
Annotated Code of Maryland 20
(2016 Volume and 2023 Supplement) 21
2 SENATE BILL 537
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Alcoholic Beverages and Cannabis 3
1–101. 4
(a) In this article the following words have the meanings indicated. 5
(dd) (1) “Retail dealer” means a person that sells an alcoholic beverage to any 6
person other than a license holder. 7
(2) “Retail dealer” includes a county dispensary. 8
36–405. 9
(a) IN THIS SECTION, “UNDULY BURDEN ” INCLUDES IMPOSING A ZONING 10
REQUIREMENT OR RE STRICTION ON THE USE OF PROPERTY BY A CAN NABIS 11
LICENSEE THAT IS MOR E RESTRICTIVE THAN T HE REQUIREMENTS ESTA BLISHED 12
UNDER § 36–410 OF THIS SUBTITLE. 13
(B) A political subdivision may: 14
(1) establish reasonable zoning requirements for cannabis businesses; and 15
(2) decide how to distribute its allocation of revenue under § 2–1302.2 of 16
the Tax – General Article. 17
[(b)] (C) A political subdivision may not: 18
(1) establish zoning or other requirements that unduly burden a cannabis 19
licensee; 20
(2) impose licensing, operating, or other fees or requirements on a cannabis 21
licensee that are disproportionately greater or more burdensome than those imposed on 22
other businesses with a similar impact on the area where the cannabis licensee is located; 23
(3) prohibit transportation through or deliveries within the political 24
subdivision by cannabis businesses located in other political subdivisions; 25
(4) prevent an entity whose license may be converted under § 26
36–401(b)(1)(ii) of this subtitle and that is in compliance with all relevant medical cannabis 27
regulations from being granted the license conversion; or 28
(5) negotiate or enter into an agreement with a cannabis licensee or an 29
applicant for a cannabis license requiring that the cannabis licensee or applicant provide 30 SENATE BILL 537 3
money, donations, in–kind contributions, services, or anything of value to the political 1
subdivision. 2
[(c)] (D) The use of a facility by a cannabis licensee is not required to be 3
submitted to, or approved by, a county or municipal zoning board, authority, or unit if the 4
facility: 5
(1) THE FACILITY was properly zoned and operating on or before January 6
1, 2023; or 7
(2) is used by a grower, processor, or dispensary that THE CANNABIS 8
LICENSEE: 9
(i) held a Stage One Preapproval for a license before October 1, 10
2022; and 11
(ii) was not operational ACTIVELY ENGAGED IN THE GROWING , 12
PROCESSING, OR DISPENSING OF CAN NABIS before October 1, 2022. 13
[(d)] (E) A political subdivision or special taxing district may not impose a tax 14
on cannabis. 15
36–410. 16
(a) Beginning July 1, 2023, a cannabis licensee that is operating a dispensary 17
shall: 18
(1) ensure that it has adequate supply for qualifying patients and 19
caregivers; 20
(2) set aside operating hours or dedicated service lines to serve only 21
qualifying patients and caregivers; and 22
(3) ensure that at least 25% of cannabis and cannabis products in the 23
dispensary are from social equity licensees and growers and processors that do not share 24
common ownership with the dispensary. 25
(b) Except as provided in subsection (d) of this section, a licensed dispensary may 26
not locate within: 27
(1) 500 feet of: 28
(i) a pre–existing primary or secondary school in the State, or a 29
licensed child care center or registered family child care home under Title 9.5 of the 30
Education Article; or 31
4 SENATE BILL 537
(ii) a PRE–EXISTING playground, recreation center, library, [or] 1
public park, OR PLACE OF WORSHIP ; or 2
(2) 1,000 feet of another dispensary under this title. 3
(c) (1) A EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 4
A political subdivision may adopt an ordinance reducing, BUT NOT INCREASING , the 5
distance requirements under subsection (b) of this section. 6
(2) A POLITICAL SUBDIVISIO N MAY BY ORDINANCE I NCREASE THE 7
DISTANCE LIMITATION FOR DISPENSARIES UND ER SUBSECTION (B)(2) OF THIS 8
SECTION TO NOT MORE THAN 2,000 FEET ONE–HALF MILE. 9
(d) The distance requirements under subsection (b) of this section do not apply to 10
a dispensary license that was: 11
(1) converted under § 36–401(b)(1)(ii) of this subtitle; and 12
(2) properly zoned and operating before July 1, 2023. 13
(E) A POLITICAL SUBDIVISIO N MAY NOT ADOPT AN O RDINANCE 14
ESTABLISHING ZONING REQUIREMENTS FOR LIC ENSED DISPENSARIES T HAT ARE 15
MORE RESTRICTIVE THA N ZONING REQUIREMENT S FOR A RETAIL DEALE R LICENSED 16
UNDER THIS AR TICLE. 17
(F) A POLITICAL SUBDIVISIO N MAY NOT ADOPT AN O RDINANCE 18
ESTABLISHING A ZONIN G REQUIREMENT FOR A LICENSED GROWER CULT IVATING 19
CANNABIS EXCLUSIVELY OUTDOORS IN AN AREA ZONED ONL Y FOR AGRICULTURAL 20
USE THAT IS MORE RESTRIC TIVE THAN ANY ZONING REQUIREMENTS THAT EX ISTED 21
ON JUNE 30, 2023, GOVERNING A HEMP FAR M REGISTERED UNDER TITLE 14 OF THE 22
AGRICULTURE ARTICLE IN THE POLITI CAL SUBDIVISION . 23
(G) A POLITICAL SUBDIVISIO N MAY: 24
(1) BY ORDINANCE , ESTABLISH A DISTANCE LIMITATION FOR 25
DISPENSARIES OF UP TO 100 FEET FROM AN AREA ZO NED FOR RESIDENTIAL USE; OR 26
(2) APPLY TO DISPENSARIE S THE DISTANCE LIMIT ATION FOR 27
LICENSED ALCOHOLIC B EVERAGE RETAILERS FR OM AN AREA ZONED FOR 28
RESIDENTIAL USE . 29
(H) A POLITICAL SUBDIVISIO N SHALL GRANT A WAIV ER TO AN ORDINANCE 30
THAT PROVIDES A DIST ANCE REQUIREMENT FOR DISPENSARIES UNDER T HIS 31
SECTION FOR A LICENS ED DISPENSARY THAT W AS IN OPERATION BEFO RE APRIL 1, 32
2024. 33 SENATE BILL 537 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1
1, 2024. 2
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.