EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0726*
SENATE BILL 726
A3, K3 5lr3268
By: Senator Ellis
Introduced and read first time: January 27, 2025
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Cannabis Licensees – Bona Fide Labor Organizations and Labor Peace 2
Agreements 3
FOR the purpose of requiring the Maryland Cannabis Administration to consider certain 4
factors in determining if a labor organization is a “bona fide labor organization”; 5
requiring a cannabis licensee, under certain circumstances, to execute a certain labor 6
peace agreement and to maintain and abide by the agreement; authorizing a certain 7
labor organization to file a protest with the Administration against the renewal of a 8
cannabis license; and generally relating to cannabis licenses, labor peace 9
agreements, and bona fide labor organizations. 10
BY repealing and reenacting, without amendments, 11
Article – Alcoholic Beverages and Cannabis 12
Section 36–101(a), (c), and (h) and 36–401(a) and (b)(1)(ii) 13
Annotated Code of Maryland 14
(2024 Replacement Volume) 15
BY adding to 16
Article – Alcoholic Beverages and Cannabis 17
Section 36–101(c–1) and (w–1), 36–202(a)(9), and 36–401(b)(1)(vi) and (j) 18
Annotated Code of Maryland 19
(2024 Replacement Volume) 20
BY repealing and reenacting, with amendments, 21
Article – Alcoholic Beverages and Cannabis 22
Section 36–202(a)(9) and (10), 36–401(b)(1)(iv) and (v), and 36–411(a) 23
Annotated Code of Maryland 24
(2024 Replacement Volume) 25
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26
That the Laws of Maryland read as follows: 27 2 SENATE BILL 726
Article – Alcoholic Beverages and Cannabis 1
36–101. 2
(a) In this title the following words have the meanings indicated. 3
(c) “Administration” means the Maryland Cannabis Administration established 4
under this title. 5
(C–1) “BONA FIDE LABOR ORGAN IZATION” MEANS A LABOR ORGANI ZATION 6
THAT COMPLIES WITH 29 U.S.C. § 431 AND IS ACTIVELY SPEN DING RESOURCES TO 7
ORGANIZE EMPLOYEES OF A CANNABIS LICENSEE FOR THE PURPOSES OF 8
ADVOCATING FOR IMPROVED WORKING CONDITIONS . 9
(h) “Cannabis licensee” means a business licensed by the Administration to 10
operate in the cannabis industry. 11
(W–1) “LABOR PEACE AGREEMENT ” MEANS AN AGREEMENT B ETWEEN A BONA 12
FIDE LABOR ORGANIZATION AND A CANNABIS LICENSEE THAT PROHIBITS THE 13
LABOR ORGANIZATION F ROM ENGAGING IN PICK ETING, WORK STOPPAGES , OR 14
BOYCOTTS AGAINST THE LICENSED ENTITY. 15
36–202. 16
(a) The Administration shall: 17
(9) WHEN DETERMINING IF A LAB OR ORGANIZATION IS A BONA FIDE 18
LABOR ORGANIZATION , CONSIDER WHETHER THE LABOR OR GANIZATION: 19
(I) IS THE BARGAINING REP RESENTATIVE FOR EMPL OYEES OF 20
A CANNABIS LICENSEE; 21
(II) IS A PARTY TO A BARGA INING AGREEMENT WITH A 22
CANNABIS LICENSEE ; 23
(III) IS SPENDING SIGNIFICA NT RESOURCES , INCLUDING 24
ASSIGNING PAID STAFF , TO ACTIVELY ORGANIZE EMPLOYEES OF A CANNA BIS 25
LICENSEE; 26
(IV) HAS, WITHIN THE PREVIOUS 6 MONTHS, FILED LABOR 27
GRIEVANCES AGAINST A CANNABIS LICENSEE ; 28
SENATE BILL 726 3
(V) HAS, WITHIN THE PREVIOUS 2 YEARS, ENGAGED IN 1
PICKETING, STRIKING, PUBLICLY THREATENING TO PICKET OR STRIKE , OR 2
PUBLICLY CALLING FOR CONSUMER BOYCOTTS AG AINST A CANNABIS LICENSEE ; 3
(VI) IS BASED IN THE STATE OR MAINTAINS A PERMANENT STAFF 4
IN THE STATE; AND 5
(VII) IS AFFILIATED WITH A NATIONAL OR REGION AL LABOR 6
COUNCIL THAT COVERS A REGION OF THE STATE; 7
[(9)] (10) adopt regulations necessary to carry out its duties under this 8
title; and 9
[(10)] (11) perform any other power authorized or duty required under this 10
title or any other provision of State law. 11
36–401. 12
(a) (1) A person must obtain a cannabis license issued by the Administration 13
to operate a cannabis business. 14
(2) A cannabis license issued under this subtitle: 15
(i) authorizes the holder of the license to operate a medical and 16
adult–use cannabis business; 17
(ii) is valid for 5 years on initial licensure and 5 years on renewal; 18
and 19
(iii) may be transferred only in accordance with Subtitle 5 of this 20
title. 21
(b) (1) The Administration shall: 22
(ii) on or before July 1, 2023, convert licenses that were issued to 23
medical cannabis growers, processors, and dispensaries, including those businesses 24
preapproved for licensure, to licenses to operate a medical and adult–use cannabis business 25
if: 26
1. a conversion fee is paid in accordance with § 36–403 of this 27
subtitle; and 28
2. the business complies with the ownership restrictions 29
under subsection (e) of this section; 30
4 SENATE BILL 726
(iv) issue dispensary licenses in a manner that encourages a 1
balanced geographic distribution based on population and market demand within a specific 2
county, as well as cross–jurisdictional market demand; [and] 3
(v) adopt regulations requiring licensees whose licenses were 4
converted by the Administration under item (ii) of this paragraph to reserve a specified 5
amount of cannabis for social equity licensees; AND 6
(VI) ADOPT REGULATIONS IM PLEMENTING THE REQUI REMENTS 7
UNDER SUBSECTION (J) OF THIS SECTION REGA RDING LABOR PEACE AG REEMENTS. 8
(J) PRIOR TO THE RENEWAL OF A CANNABIS LICENS EE’S LICENSE FOR THE 9
FIRST TIME UNDER THI S SUBTITLE, INCLUDING A LICENSE CONVERTED UNDER 10
SUBSECTION (B)(1)(II) OF THIS SECTION, THE CANNABIS LICENSE E SHALL EXECUTE 11
A LABOR PEACE AGREEM ENT AND, AFTER ITS LICENSE IS RENEWED, SHALL 12
MAINTAIN AND ABIDE B Y THE LABOR PEACE AGREEMENT AS A CONDITION OF 13
LICENSURE. 14
36–411. 15
(a) (1) A protest against a license renewal may be filed with the 16
Administration by: 17
(I) at least 10 individuals who are: 18
[(i)] 1. residents, commercial tenants who are not holders of or 19
applicants for a license, or real estate owners; and 20
[(ii)] 2. located within 1,000 feet of the licensed premises; OR 21
(II) A BONA FIDE LABOR OR GANIZATION. 22
(2) A protest against a license renewal shall: 23
(i) be on the basis of: 24
1. a violation of this title; 25
2. a violation of civil or criminal law; 26
3. conduct by a licensee that creates or maintains conditions 27
that allow other individuals to act in a manner that disturbs the public peace, including: 28
A. obstruction of public rights–of–way by unruly crowds; 29
SENATE BILL 726 5
B. assault, battery, or other disorderly conduct that disturbs 1
the public peace; 2
C. vandalism; or 3
D. littering; or 4
4. any other violation established by the Administration by 5
regulation; and 6
(ii) be signed under oath. 7
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 8
October 1, 2025. 9