Md. Code, Alcoholic Beverages and Cannabis § 36-1403 — MD Code / Article gab / Title 36 / Subtitle 14 / Section 36-1403
§36–1403.
Status: in_force

The purpose of the Program is to stimulate opportunities for social equity licensees that have difficulty obtaining financing and to establish a loan loss reserve account.
Md. Code, Alcoholic Beverages and Cannabis § 36-1405 — MD Code / Article gab / Title 36 / Subtitle 14 / Section 36-1405
§36–1405.
Status: in_force

(a) To participate in the Program, a lender shall enroll the qualifying loan in the Program not more than 30 days after the date of the first disbursement of the loan.

(b) A lender may enroll all or a portion of a qualifying loan in an amount of not more than:

(1) for a dispensary, $500,000; or

(2) for a grower or processor, $1,000,000.
Md. Code, State Personnel and Pensions § 36-101 — MD Code / Article gsp / Title 36 / Subtitle 1 / Section 36-101
§36–101.
Status: in_force

It is the policy of this State that the benefits available under the federal Social Security Act shall be provided to the employees and officers of this State and its political subdivisions and to their dependents and survivors.
Md. Code, Alcoholic Beverages and Cannabis § 36-1402 — MD Code / Article gab / Title 36 / Subtitle 14 / Section 36-1402
§36–1402.
Status: in_force

There is a Capital Access Program in the Department of Commerce.
Md. Code, Alcoholic Beverages and Cannabis § 36-203.1 — MD Code / Article gab / Title 36 / Subtitle 2 / Section 36-203.1
§36–203.
Status: in_force

§36–203.1.

(a) The Administration shall adopt regulations establishing limits on the maximum potency of cannabis products sold in the State, including limits on the maximum amount of THC in individual cannabis products and limits on the maximum aggregate THC amount for multiple edible cannabis products packaged together.

(b) A package of cannabis for distribution to a consumer or qualifying patient shall:

(1) conform to:

(i) child–resistant packaging requirements established under 16 C.F.R. § 1700.15(b)(1); and

(ii) tamper–evident packaging;

(2) provide that packaging and labeling shall include:

(i) a finished product lot number and expiration date if applicable;

(ii) a statement:

1. that consumption of cannabis may impair your ability to drive a car or operate machinery, use extreme caution;

2. of potential risks associated with cannabis use, especially during pregnancy or breast feeding; and

3. that this package contains cannabis, keep out of the reach of children and animals;

(iii) the name, address, and phone number of the dispensary that sold the product to report an adverse event;

(iv) any allergen warning required by law;

(v) a listing of noncannabis ingredients; and

(vi) an itemization, including weight:

1. of all cannabinoid and terpene ingredients specified for the product; and

2. concentrations of any cannabinoid of less than 1% printed with a leading zero before the decimal point.

(c) Cannabis labeling and packaging may not include:

(1) subject to subsection (d) of this section, any image that may appeal to children including:

(i) images of food, candy, baked goods, cereal, fruit, and beverages; and

(ii) a resemblance to the trademarked characteristic product–specialized packaging of any commercially available candy, snack, baked good, cereal, or beverage;

(2) any image that is designed or likely to appeal to minors, including cartoons, toys, animals, children, or any likeness to images, characters, or phrases that are popularly used to advertise to children;

(3) a statement, artwork, or design that could reasonably mislead any individual to believe that the packaging contains anything other than a finished cannabis product; and

(4) any image of a seal, flag, crest, coat of arms, or other insignia that could reasonably mislead any individual to believe that the product has been endorsed, manufactured, or used by any agency of a state or political subdivision.

(d) The Administration may adopt regulations to allow the sale, on or before July 1, 2024, of cannabis or cannabis products that are labeled or packaged using images described under subsection (c)(1) of this section.
Md. Code, Alcoholic Beverages and Cannabis § 36-502 — MD Code / Article gab / Title 36 / Subtitle 5 / Section 36-502
§36–502.
Status: in_force

(a) A person wishing to hold an ownership interest of 5% or greater in, or control of, a cannabis licensee shall submit to the Administration:

(1) an application that includes the name, address, and date of birth of the applicant;

(2) a statement signed by the applicant asserting that the applicant has not previously had a cannabis license or cannabis registration suspended or revoked;

(3) a State and national criminal history records check in accordance with § 36–505 of this subtitle;

(4) any information required by the Administration to complete an investigation into the background of the applicant, including financial records and other information relating to the business affairs of the applicant; and

(5) an application fee in an amount to be determined by the Administration in accordance with this subtitle.

(b) The Administration may deny an application if:

(1) the applicant:

(i) fails to submit the information required under subsection (a) of this section; or

(ii) has been convicted of or pleaded nolo contendere to a crime involving moral turpitude, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside; or

(2) the Administration finds a substantial reason to deny the registration.
Md. Code, Alcoholic Beverages and Cannabis § 36-701 — MD Code / Article gab / Title 36 / Subtitle 7 / Section 36-701
§36–701.
Status: in_force

(a) (1) An institution of higher education, a related medical facility, or an affiliated biomedical research firm may register with the Administration to purchase cannabis for the purpose of conducting a bona fide research project relating to the uses, properties, or composition of cannabis.

(2) A registration filed under paragraph (1) of this subsection shall include:

(i) the name of the primary researcher;

(ii) the expected duration of the research project; and

(iii) the primary objectives of the research project.

(3) A registration filed under paragraph (1) of this subsection shall remain valid until there is a change in the research project or a withdrawal of the registration.

(b) An academic research representative may purchase cannabis from a licensed dispensary or a supplier of cannabis that is licensed by any federal agency to supply cannabis to researchers.

(c) An academic research representative may not be penalized or arrested under State law for acquiring, possessing, or dispensing cannabis, products containing cannabis, related supplies, or educational materials for use in a bona fide research project relating to the uses, properties, or composition of cannabis.

(d) The Administration may adopt regulations to implement this section.
Md. Code, Alcoholic Beverages and Cannabis § 36-404 — MD Code / Article gab / Title 36 / Subtitle 4 / Section 36-404
§36–404.
Status: in_force

(a) (1) On or before January 1, 2024, the Administration shall begin issuing first round licenses in accordance with subsection (d) of this section.

(2) On or after May 1, 2024, the Administration shall begin issuing second round licenses in accordance with subsections (e) or (f) of this section.

(3) Subject to paragraphs (1) and (2) of this subsection, the Administration may issue licenses in accordance with subsection (g) of this section.

(b) (1) The Administration shall:

(i) conduct extensive outreach to small, minority, and women business owners and entrepreneurs who may have an interest in applying for a cannabis license before accepting and processing cannabis license applications;

(ii) connect potential social equity applicants with the Office of Social Equity;

(iii) accept and process applications for licenses:

1. in response to a request for applications issued under this section;

2. for a period of 30 calendar days; and

3. beginning on a date that is at least 60 calendar days after the date on which the Administration issued the request for applications;

(iv) award cannabis licenses in at least two separate rounds in accordance with this section; and

(v) reserve a reasonable number of licenses to allow micro licenses to transition to standard licenses, as determined in regulations by the Administration.

(2) The Administration may suspend, fine, restrict, or revoke a cannabis license if it is determined that a cannabis licensee has not complied with statements in the application, including statements about standards of operation or employment practices related to diversity, equity, and inclusion.

(3) The Administration may not:

(i) accept more than one application per license type from an applicant in any round;

(ii) accept more than two applications from an applicant in any round;

(iii) require that an applicant possess or own a property or facility to operate a cannabis business at the time of application;

(iv) regardless of the number of license awards authorized in each round, award more licenses than the total number of licenses authorized under § 36–401(d) of this subtitle; or

(v) conduct a market demand study before the first round licenses are issued.

(4) The Administration may adopt regulations concerning the equity and fairness of the pool of applicants throughout the application process.

(c) To be licensed, an applicant shall submit to the Administration:

(1) an application fee in accordance with § 36–403 of this subtitle; and

(2) an application developed by the Administration under this title.

(d) (1) For the first round, subject to paragraphs (2) and (3) of this subsection, the Administration shall enter each social equity applicant that meets the minimum qualifications established by the Administration into a lottery and issue to social equity applicants not more than:

(i) for standard licenses:

1. 20 grower licenses;

2. 40 processor licenses; and

3. 80 dispensary licenses;

(ii) for micro licenses:

1. 30 grower licenses;

2. 30 processor licenses; and

3. 10 dispensary licenses; and

(iii) 10 incubator space licenses.

(2) The Administration shall determine whether an application meets the minimum qualifications for the lottery on a pass–fail basis, as determined by the Administration, after evaluating:

(i) a detailed operational plan for the safe, secure, and effective cultivation, manufacture, or dispensing of cannabis;

(ii) a business plan demonstrating a likelihood of success and sufficient business ability and experience on the part of the applicant, and providing for appropriate employee working conditions; and

(iii) a detailed diversity plan.

(3) (i) If an applicant seeking social equity status is from out of state, the applicant must submit with the application evidence that the applicant meets the criteria for a social equity applicant established under this title before the Administration may consider the application.

(ii) First round application submissions for all license types are limited to social equity applicants.

(4) (i) On or before January 1, 2024, the Administration shall submit an interim report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the ability of micro dispensary licensees to safely and securely dispense cannabis.

(ii) On or before December 31, 2024, the Administration shall submit a final report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the ability of micro dispensary licensees to safely and securely dispense cannabis.

(e) For the second round of licensing, the Administration shall issue licenses in accordance with subsection (f) or (g) of this section.

(f) (1) Subject to paragraph (2) of this subsection, if the Administration, in consultation with the certification agency designated by the Board of Public Works under § 14–303(b) of the State Finance and Procurement Article, the Governor’s Office of Small, Minority, and Women Business Affairs, the General Assembly, and the Office of the Attorney General, determines that a disparity study demonstrates a strong basis in evidence of business discrimination against firms owned by minorities and women in the Maryland cannabis market, the Administration shall issue a second round of licenses, applying minimum licensing qualifications and employing remedial measures consistent with constitutional requirements, for not more than:

(i) for standard licenses:

1. 25 grower licenses;

2. 25 processor licenses; and

3. 120 dispensary licenses;

(ii) for micro licenses:

1. 70 grower licenses; and

2. 70 processor licenses; and

(iii) 10 incubator space licenses.

(2) If the Administration, in consultation with the certification agency designated by the Board of Public Works under § 14–303(b) of the State Finance and Procurement Article, the Governor’s Office of Small, Minority, and Women Business Affairs, the General Assembly, and the Office of the Attorney General, determines that a lottery system employing remedial measures established in accordance with a disparity study can be conducted consistent with constitutional requirements, the Administration shall award licenses under paragraph (1) of this subsection through a lottery process that employs remedial measures.

(g) (1) Subject to paragraphs (2) and (3) of this subsection, if the Administration, in consultation with the certification agency designated by the Board of Public Works under § 14–303(b) of the State Finance and Procurement Article, the Governor’s Office of Small, Minority, and Women Business Affairs, the General Assembly, and the Office of the Attorney General, determines that a disparity study does not demonstrate a strong basis in evidence of business discrimination against firms owned by minorities and women in the Maryland cannabis market, the Administration shall enter each applicant that meets the minimum qualifications established by the Administration into a lottery and issue to the applicants not more than:

(i) for standard licenses:

1. 25 grower licenses;

2. 25 processor licenses; and

3. 120 dispensary licenses;

(ii) for micro licenses:

1. 70 grower licenses; and

2. 70 processor licenses; and

(iii) 10 incubator space licenses.

(2) The Administration shall determine whether an application meets the minimum qualifications for a lottery based on a pass–fail basis, as determined by the Administration, after evaluating:

(i) a detailed operational plan for the safe, secure, and effective cultivation, manufacture, or dispensing of cannabis;

(ii) a business plan demonstrating a likelihood of success and sufficient business ability and experience on the part of the applicant, and providing for appropriate employee working conditions; and

(iii) a detailed diversity plan.

(3) Application submissions for micro licenses and on–site consumption licenses under this subsection are limited to social equity applicants.

(h) (1) For cannabis license awards subsequent to the round specified under subsection (f) or (g) of this section, the Administration shall award licenses in accordance with this subsection.

(2) The Administration shall award licenses as needed in accordance with a market demand study.

(3) The Administration may:

(i) limit some or all of the licenses issued under this paragraph to social equity applicants; and

(ii) employ remedial measures, consistent with constitutional requirements, if the Administration, in consultation with the certification agency designated by the Board of Public Works under § 14–303(b) of the State Finance and Procurement Article, the Governor’s Office of Small, Minority, and Women Business Affairs, the General Assembly, and the Office of the Attorney General, determines that a disparity study demonstrates a strong basis in evidence of business discrimination against firms owned by minorities and women in the Maryland cannabis market.

(i) (1) To the extent practicable and authorized by the U.S. Constitution, a cannabis licensee shall comply with the State’s Minority Business Enterprise Program.

(2) The Administration, in consultation with the certification agency designated by the Board of Public Works under § 14–303(b) of the State Finance and Procurement Article, the Governor’s Office of Small, Minority, and Women Business Affairs, the General Assembly, and the Office of the Attorney General, shall review the disparity study required by Chapter 26 of the Acts of 2022 to evaluate whether application of the State’s Minority Business Enterprise Program to cannabis licenses would comply with the City of Richmond v. J.A. Croson Co., 488 U.S. 469, and any subsequent federal or constitutional requirements.

(3) On or before 6 months after the issuance of a cannabis license under § 36–401 of this subtitle, the Governor’s Office of Small, Minority, and Women Business Affairs, in consultation with the Office of the Attorney General and the Office of Social Equity within the Administration and the cannabis licensee, shall establish a clear plan for setting reasonable and appropriate minority business enterprise participation goals and procedures for the procurement of goods and services related to cannabis, including the cultivation, manufacturing, and dispensing of cannabis.

(4) To the extent practicable, the goals and procedures specified in paragraph (3) of this subsection shall be based on the requirements of Title 14, Subtitle 3 of the State Finance and Procurement Article and the regulations implementing that subtitle.
Md. Code, Alcoholic Beverages and Cannabis § 36-402 — MD Code / Article gab / Title 36 / Subtitle 4 / Section 36-402
§36–402.
Status: in_force

(a) It is the intent of the General Assembly to preserve production availability for new adult–use cannabis cultivation licenses issued under this subtitle.

(b) (1) If the license of a cannabis licensee is converted by the Administration under § 36–401(b)(1)(ii) of this subtitle, the cannabis licensee shall:

(i) if the licensee is a grower, adhere to the expansion limitations specified under paragraph (2) of this subsection; and

(ii) pay the conversion fee required under § 36–403 of this subtitle.

(2) (i) Except as provided in subparagraph (ii) of this paragraph and subject to subparagraph (iii) of this paragraph, on or before January 1, 2027, an operational business that holds a grower license issued before December 31, 2022, may expand the canopy of its operations as it existed on December 31, 2022, and based on facility square footage of indoor canopy space or its equivalent, as calculated by the Administration in accordance with subsection (d) of this section, only as follows:

1. if the canopy is under 25,000 square feet, to 25,000 square feet or by 20%, whichever is greater;

2. if the canopy is at or above 25,000 square feet, by 20%; or

3. if the cannabis licensee has a square footage expansion that was preapproved before December 31, 2022, the preapproved expansion or 20%, whichever is greater.

(ii) If the Administration and an operational business described under subparagraph (i) of this paragraph are unable to agree as to the square footage of the canopy expansion of the licensee’s operations authorized under subparagraph (i) of this paragraph, the square footage of the canopy expansion shall be calculated based on the licensee’s average cannabis production in calendar years 2021 and 2022.

(iii) An operational business described under subparagraph (i) of this paragraph may begin to expand its canopy of operations:

1. by not more than 50% of the total square footage authorized under subparagraph (i) or (ii) of this paragraph on or after January 1, 2024; and

2. for the remaining total square footage authorized under subparagraph (i) or (ii) of this paragraph on or after May 1, 2024.

(iv) A grower licensee may not operate an indoor canopy that exceeds 300,000 square feet or its equivalent, as calculated by the Administration in accordance with subsection (d) of this section, if the grower licensee:

1. held a Stage One Preapproval for a license before October 1, 2022; and

2. was not operational before October 1, 2022.

(c) A business that is issued a new cannabis license under § 36–401 of this subtitle may not operate an indoor canopy that exceeds 300,000 square feet for indoor canopies or its equivalent, as calculated by the Administration.

(d) (1) (i) This paragraph applies to all licensed growers.

(ii) A licensed grower shall accurately calculate and report annually to the Administration its flowering cannabis plant canopy area.

(iii) The canopy�area is measured in accordance with the definition of “canopy” established under § 36–101 of this title.

(iv) For the purpose of measuring canopy, 1 square foot of indoor canopy is equal to 4 square feet of outdoor canopy.

(v) The maximum amount of space for cannabis production may not exceed the canopy authorized under this section.

(vi) If the amount of square feet of production for a licensed grower exceeds the canopy authorized under this section and § 36–401 of this subtitle, the Administration may:

1. reduce the canopy of the licensed grower by the same percentage as it exceeds the authorized canopy; and

2. seize, destroy, confiscate, or place an administrative hold on any flowering cannabis plants produced in excess of the canopy.

(vii) The Administration shall annually report to the General Assembly, in accordance with § 2–1257 of the State Government Article, the amount of canopy area reported to the Administration by licensed growers under item (ii) of this paragraph.

(2) The maximum amount of canopy for an operational business that holds a license issued before October 1, 2022, shall be calculated based on the maximum canopy of the licensee as self–reported by the licensee and recorded by the Natalie M. LaPrade Medical Cannabis Commission on or before December 1, 2022.

(e) (1) On or before July 1, 2024, the Administration shall adopt minimum standards for licensed growers to protect the rights of the growers and employees concerning grievances, labor disputes, wages, rates of pay, hours, or other terms or conditions of employment.

(2) The standards shall, at a minimum, protect the State’s interests by prohibiting a labor organization from engaging in picketing, work stoppages, boycotts, or any other economic interference with the operation of the licensed grower.

(3) As a condition of licensure, the licensed grower shall:

(i) comply with the standards adopted under paragraph (1) of this subsection; and

(ii) negotiate in good faith with employees and any legitimate labor organization recognized by the Administration.
Md. Code, Alcoholic Beverages and Cannabis § 36-409 — MD Code / Article gab / Title 36 / Subtitle 4 / Section 36-409
§36–409.
Status: in_force

(a) The following businesses shall register with the Administration in order to provide services to a cannabis licensee:

(1) a transporter;

(2) a security guard agency;

(3) a waste disposal company;

(4) a cannabis nursery; and

(5) any other type of cannabis business that is authorized by the Administration to provide plant or product–touching services to cannabis licensees.

(b) The Administration shall adopt regulations that establish:

(1) the standards and requirements to be met by an entity to obtain a registration under this subtitle; and

(2) the basis and processes for approval, denial, revocation, and suspension of the cannabis registration.

(c) A registration to operate a transporter, security guard agency, or waste disposal company issued by the Natalie M. LaPrade Medical Cannabis Commission on or before July 1, 2023, shall be valid under this title and authorize a transporter, security guard agency, or waste disposal company to handle medical and adult–use cannabis and cannabis products.
Md. Code, Alcoholic Beverages and Cannabis § 36-801 — MD Code / Article gab / Title 36 / Subtitle 8 / Section 36-801
§36–801.
Status: in_force

(a) On or before August 1 each year, each cannabis licensee and cannabis registrant shall report to the Administration information determined by the Administration to be necessary to continue to assess the need for remedial measures in the cannabis industry and market, including:

(1) the number of minority and women owners of the cannabis licensee or cannabis registrant;

(2) the ownership interest of any minority and women owners of the cannabis licensee or cannabis registrant;

(3) the number of minority and women employees of the cannabis licensee or cannabis registrant;

(4) a list of the cannabis licensee’s or cannabis registrant’s expenditures for the prior State fiscal year; and

(5) for each expenditure:

(i) a description of the work performed;

(ii) the dollar value of the expenditure;

(iii) whether the work was performed by the cannabis licensee or cannabis registrant or a contractor or subcontractor; and

(iv) if the work was performed by a contractor or subcontractor, the name of the entity that performed the work.

(b) All data provided by a cannabis licensee or cannabis registrant under subsection (a)(4) and (5) of this section:

(1) shall constitute confidential commercial and financial information and be treated as confidential by the Administration and the State; and

(2) may be used only for the purposes authorized under this section and may only be disclosed to the public in an anonymized or aggregated format.

(c) On or before August 15 each year, the Administration shall provide the data collected under subsection (a) of this section to the certification agency designated by the Board of Public Works under § 14–303(b) of the State Finance and Procurement Article.

(d) On or before January 1 each year, the Administration shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the information reported under subsection (a)(1) through (3) of this section.
Md. Code, Alcoholic Beverages and Cannabis § 36-1501 — MD Code / Article gab / Title 36 / Subtitle 15 / Section 36-1501
§36–1501.
Status: in_force

(a) In this subtitle the following words have the meanings indicated.

(b) “Cannabis business” means a manufacturer, producer, or another person that:

(1) participates in any business or organized activity that involves handling cannabis or cannabis products, including cultivating, producing, manufacturing, selling, transporting, displaying, dispensing, distributing, or purchasing cannabis or cannabis products; and

(2) engages in an activity described in item (1) of this subsection in accordance with State law.

(c) “Depository institution” means a State–chartered or federally chartered financial institution, other–state bank, or foreign branch that:

(1) is located in the State or maintains branches in the State; and

(2) is authorized to maintain accounts.

(d) (1) “Service provider” means a business, an organization, or any other person that:

(i) sells goods or services to a cannabis business; or

(ii) provides any business services, including the sale or lease of real or any other property, legal or other licensed services, or any other ancillary service, relating to cannabis.

(2) “Service provider” does not include a business, an organization, or any other person that participates in any business or organized activity that involves handling cannabis or cannabis products, including cultivating, producing, manufacturing, selling, transporting, displaying, dispensing, distributing, or purchasing cannabis or cannabis products.
Md. Code, Alcoholic Beverages and Cannabis § 36-1401 — MD Code / Article gab / Title 36 / Subtitle 14 / Section 36-1401
§36–1401.
Status: in_force

(a) In this subtitle the following words have the meanings indicated.

(b) “Borrower” means a business that:

(1) qualifies as a small business under the U.S. Small Business Administration size standards;

(2) applies to a lender for business financing; and

(3) has fewer than 50 employees.

(c) “Department” means the Department of Commerce.

(d) “Lender” means:

(1) a credit union, as defined in § 1–101 of the Financial Institutions Article;

(2) a financial institution, as defined in § 1–101 of the Financial Institutions Article; or

(3) a community development financial institution, as defined in 12 U.S.C. § 4702(5).

(e) “Program” means the Capital Access Program established under this subtitle.
Md. Code, Alcoholic Beverages and Cannabis § 36-1201 — MD Code / Article gab / Title 36 / Subtitle 12 / Section 36-1201
§36–1201.
Status: in_force

The following persons acting in accordance with the provisions of this title may not be subject to arrest, prosecution, revocation of mandatory supervision, parole, or probation, or any civil or administrative penalty, including a civil penalty or disciplinary action by a professional licensing board, or be denied any right or privilege, for the use of or possession of cannabis that is authorized under this title:

(1) a qualifying patient;

(2) a cannabis licensee or cannabis registrant that is licensed or registered under this title;

(3) a certifying provider;

(4) a caregiver;

(5) an academic research representative purchasing medical cannabis under Subtitle 7 of this title;

(6) a hospital, medical facility, or hospice program where a qualifying patient is receiving treatment; or

(7) designated school personnel authorized to administer medical cannabis to a student in accordance with the guidelines established under § 7–446 of the Education Article unless the act or omission constitutes gross negligence or wanton or willful misconduct.
Md. Code, Alcoholic Beverages and Cannabis § 36-1102 — MD Code / Article gab / Title 36 / Subtitle 11 / Section 36-1102
§36–1102.
Status: in_force

(a) (1) In this section the following words have the meanings indicated.

(2) “Hemp” has the meaning stated in § 14–401 of the Agriculture Article.

(3) “Tetrahydrocannabinol” means:

(i) any tetrahydrocannabinol, including delta–8–tetrahydrocannabinol, delta–9–tetrahydrocannabinol, and delta–10–tetrahydrocannabinol, regardless of how derived;

(ii) any other cannabinoid, except cannabidiol that the Administration determines to cause intoxication; and

(iii) any other chemically similar compound, substance, derivative, or isomer of tetrahydrocannabinol, as identified by the Administration.

(4) “Tincture” means a solution that is:

(i) dissolved in alcohol, glycerin, or vegetable oil; and

(ii) distributed in a dropper bottle of 4 ounces or less.

(b) (1) A person may not sell or distribute a product intended for human consumption or inhalation that contains more than 0.5 milligrams of tetrahydrocannabinol per serving or 2.5 milligrams of tetrahydrocannabinol per package unless the person is licensed under § 36–401 of this title and the product complies with the:

(i) manufacturing standards established under § 36–203 of this title;

(ii) laboratory testing standards established under § 36–203 of this title; and

(iii) packaging and labeling standards established under § 36–203 of this title.

(2) A person may not sell or distribute a product described under paragraph (1) of this subsection to an individual under the age of 21 years.

(c) A person may not sell or distribute a cannabinoid product that is not derived from naturally occurring biologically active chemical constituents.

(d) (1) Notwithstanding subsection (b) of this section and subject to paragraph (2) of this subsection, it is not a violation of this section for a person to sell or distribute a hemp–derived tincture intended for human consumption that contains:

(i) a ratio of cannabidiol to tetrahydrocannabinol of at least 15 to 1; and

(ii) 2.5 milligrams or less of tetrahydrocannabinol per serving and 100 milligrams or less of tetrahydrocannabinol per package.

(2) To sell or distribute a hemp–derived tincture under this subsection, a person must provide, as required by the Administration, tincture samples for the purpose of testing to determine chemical potency and composition levels and to detect and quantify contaminants.

(e) A person who violates subsection (b) of this section:

(1) may be charged by a citation; and

(2) is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000.

(f) A person who violates subsection (c) of this section:

(1) may be charged by a citation; and

(2) is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $10,000.
Md. Code, Alcoholic Beverages and Cannabis § 36-411 — MD Code / Article gab / Title 36 / Subtitle 4 / Section 36-411
§36–411.
Status: in_force

(a) (1) A protest against a license renewal may be filed with the Administration by at least 10 individuals who are:

(i) residents, commercial tenants who are not holders of or applicants for a license, or real estate owners; and

(ii) located within 1,000 feet of the licensed premises.

(2) A protest against a license renewal shall:

(i) be on the basis of:

1. a violation of this title;

2. a violation of civil or criminal law;

3. conduct by a licensee that creates or maintains conditions that allow other individuals to act in a manner that disturbs the public peace, including:

A. obstruction of public rights–of–way by unruly crowds;

B. assault, battery, or other disorderly conduct that disturbs the public peace;

C. vandalism; or

D. littering; or

4. any other violation established by the Administration by regulation; and

(ii) be signed under oath.

(b) (1) Except as provided under paragraph (2) of this subsection, if a protest against a license renewal is filed at least 30 days before the license expires, the Administration may not approve the renewal without holding a hearing.

(2) The Administration may approve a license renewal without a hearing if the Administration finds that the basis of the protest filed against the renewal is without any reasonable ground.

(c) In hearing and making a determination on a protest filed against a license renewal, the Administration:

(1) may consider only:

(i) issues arising out of specific complaints about the operation of the licensed premises; and

(ii) the performance of the license holder for the 4–year period immediately preceding the date of the renewal application; and

(2) may not consider zoning issues.

(d) The Administration may adopt regulations to implement this section.
Md. Code, Alcoholic Beverages and Cannabis § 36-1503 — MD Code / Article gab / Title 36 / Subtitle 15 / Section 36-1503
§36–1503.
Status: in_force

(a) The Commissioner of Financial Regulation may not:

(1) terminate or limit the deposit insurance or share insurance of a depository institution under the Federal Deposit Insurance Act or the Federal Credit Union Act, a depository institution operating in the State under the Financial Institutions Article, or take any other adverse action against a depository institution under 12 U.S.C. § 1818 solely because the depository institution provides or has provided financial services to a cannabis business or service provider;

(2) prohibit, penalize, or otherwise discourage a depository institution from providing financial services to a cannabis business in the State;

(3) recommend, incentivize, or encourage a depository institution to not offer financial services to an account holder, or to downgrade or cancel the financial services offered to an account holder solely because:

(i) the account holder is a cannabis business or service provider, or is an employee, owner, or operator of a cannabis business or service provider;

(ii) the account holder later becomes an employee, owner, or operator of a cannabis business or service provider; or

(iii) the depository institution was not aware that the account holder is an employee, owner, or operator of a cannabis business or service provider;

(4) take any adverse or corrective supervisory action on a loan made to:

(i) a cannabis business or service provider solely because the business is a cannabis business or service provider;

(ii) an employee, owner, or operator of a cannabis business or service provider solely because the employee, owner, or operator is employed by, owns, or operates a cannabis business or service provider, as applicable; or

(iii) an owner or operator of real estate or equipment that is leased to a cannabis business or service provider solely because the owner or operator of the real estate or equipment leased the equipment or real estate to a cannabis business or service provider, as applicable; or

(5) prohibit or penalize a depository institution, or an entity performing a financial service for or in association with a depository institution, or otherwise discourage a depository institution, or an entity performing a financial service for or in association with a depository institution, from engaging in a financial service for a cannabis business or service provider.

(b) Subsection (a) of this section shall apply to an institution applying for a depository institution charter to the same extent as it applies to a depository institution.
Md. Code, Alcoholic Beverages and Cannabis § 36-401 — MD Code / Article gab / Title 36 / Subtitle 4 / Section 36-401
§36–401.
Status: reserved

(a) (1) A person must obtain a cannabis license issued by the Administration to operate a cannabis business.

(2) A cannabis license issued under this subtitle:

(i) authorizes the holder of the license to operate a medical and adult–use cannabis business;

(ii) is valid for 5 years on initial licensure and 5 years on renewal; and

(iii) may be transferred only in accordance with Subtitle 5 of this title.

(b) (1) The Administration shall:

(i) issue standard licenses, micro licenses, incubator space licenses, and on–site consumption licenses in accordance with this title;

(ii) on or before July 1, 2023, convert licenses that were issued to medical cannabis growers, processors, and dispensaries, including those businesses preapproved for licensure, to licenses to operate a medical and adult–use cannabis business if:

1. a conversion fee is paid in accordance with § 36–403 of this subtitle; and

2. the business complies with the ownership restrictions under subsection (e) of this section;

(iii) set production, processing, sales, and other limitations and requirements for all license types;

(iv) issue dispensary licenses in a manner that encourages a balanced geographic distribution based on population and market demand within a specific county, as well as cross–jurisdictional market demand; and

(v) adopt regulations requiring licensees whose licenses were converted by the Administration under item (ii) of this paragraph to reserve a specified amount of cannabis for social equity licensees.

(2) The Administration may:

(i) inspect a cannabis licensee to ensure compliance with this title and the regulations adopted under this title;

(ii) revoke a cannabis license if good faith efforts have not been made by the cannabis licensee to establish a cannabis business within 18 months after the license was awarded;

(iii) impose penalties or rescind the license of a cannabis licensee that does not meet the standards for licensure established under this title or regulations adopted under this title; and

(iv) conditionally award cannabis licenses.

(c) (1) A standard license authorizes the holder of the license:

(i) for growers, to operate more than 10,000 square feet, but not more than 300,000 square feet, of indoor canopy or its equivalent, as calculated by the Administration;

(ii) for processors, to process more than 2,000 pounds of cannabis per year, as calculated by the Administration; and

(iii) for dispensaries, to operate a store at a physical location that sells cannabis or cannabis products.

(2) A micro license authorizes the holder of the license:

(i) for growers, to operate not more than 10,000 square feet of indoor canopy or its equivalent, as calculated by the Administration;

(ii) for processors, to process not more than 2,000 pounds of cannabis per year, as calculated by the Administration; and

(iii) for dispensaries, to operate a delivery service that sells cannabis or cannabis products without a physical storefront, provided that the licensee employs not more than 10 employees.

(3) An incubator space license authorizes the holder of the license to operate a facility within which a micro licensee may operate in accordance with § 36–406 of this subtitle.

(4) An on–site consumption license authorizes the holder of the license to operate a facility on the premises of which individuals can smoke outdoors, vape, or consume cannabis in accordance with § 36–407 of this subtitle.

(d) The Administration may not issue more than the following number of licenses per type, including licenses converted under subsection (b)(1)(ii) of this section:

(1) for standard licenses:

(i) 75 grower licenses;

(ii) 100 processor licenses; and

(iii) 300 dispensary licenses;

(2) for micro licenses:

(i) 100 grower licenses;

(ii) 100 processor licenses; and

(iii) 10 dispensary licenses;

(3) for incubator space licenses, 10 licenses; and

(4) for on–site consumption licenses, 50 licenses.

(e) (1) This subsection applies to all licenses, including licenses converted under subsection (b)(1)(ii) of this section.

(2) Subject to paragraph (3) of this subsection, a person may have an ownership interest in or control of, including the power to manage and operate:

(i) for standard licenses and micro licenses:

1. one grower licensee;

2. one processor licensee; and

3. not more than four dispensary licensees;

(ii) for incubator space licenses, not more than two licensees; and

(iii) for on–site consumption licenses, not more than two licensees.

(3) (i) A person who owns or controls an incubator space licensee or an on–site consumption licensee may not own or control any cannabis licensee listed under paragraph (2)(i) of this subsection.

(ii) The Administration shall adopt regulations limiting a person or fund from acquiring a nonmajority ownership interest in multiple cannabis businesses beyond the limitations established under this subsection.

(4) The restrictions in paragraph (2) of this subsection do not apply to a person or an entity who holds an ownership interest only as a passive investor.

(f) (1) The holder of a cannabis license may not surrender the license and apply for a new license in the same or a similar category.

(2) The limitation under paragraph (1) of this subsection applies to:

(i) affiliates, holding companies, parent companies, or other related entities;

(ii) individuals and firms with identical or substantially identical business or economic interests;

(iii) persons with common investments; and

(iv) firms that are economically dependent on each other through contractual or other relationships.

(g) Notwithstanding any provisions of this title, the holder of a dispensary license issued by the Natalie M. LaPrade Medical Cannabis Commission who converts the license or a registrant with the Natalie M. LaPrade Medical Cannabis Commission may continue to deliver medical cannabis until July 1, 2026.

(h) A license issued under this title:

(1) is not property and does not confer property rights; and

(2) is subject to:

(i) suspension, revocation, and restrictions authorized by law; and

(ii) regulations authorized under this article.

(i) (1) On and after July 1, 2023, the holder of a license issued by the Natalie M. LaPrade Medical Cannabis Commission who does not convert the license:

(i) may not:

1. operate under the license; or

2. renew the license; but

(ii) may continue to hold the license for resale to another person for conversion under this subtitle.

(2) The purchaser of a license sold by a license holder who does not convert a license under paragraph (1) of this subsection is responsible for paying the one–time conversion fee under § 36–403 of this subtitle.
Md. Code, Alcoholic Beverages and Cannabis § 36-1502 — MD Code / Article gab / Title 36 / Subtitle 15 / Section 36-1502
§36–1502.
Status: in_force

The provisions in this subtitle apply to:

(1) all banks, credit unions, and other entities operating as depository institutions in the State; and

(2) insurance companies and insurance producers operating in the State.
Md. Code, Alcoholic Beverages and Cannabis § 36-504 — MD Code / Article gab / Title 36 / Subtitle 5 / Section 36-504
§36–504.
Status: in_force

(a) (1) In this section, “owner” includes any type of owner or beneficiary of a business entity, including a principal officer, a director, a principal employee, a partner, an investor, or a beneficial owner of the business entity and, notwithstanding any other provision of this subtitle, a person having any ownership interest regardless of the percentage of ownership interest.

(2) “Owner” does not include a stockholder.

(b) The provisions in this section are in addition to the conflict of interest provisions in Title 5 of the General Provisions Article.

(c) Except as provided in subsection (d) of this section, a constitutional officer or a secretary of a principal department of the Executive Branch of the State government may not:

(1) be an owner or an employee of a business entity that holds a license or registration under this title; or

(2) have an official relationship with a business entity that holds a license or registration under this title.

(d) Subject to the provisions of Title 5 of the General Provisions Article, a constitutional officer or a secretary of a principal department of the Executive Branch of the State government may remain an owner or an employee of a business entity that holds a license under this title if the constitutional officer or secretary was an owner or employee of the business entity before the constitutional officer’s election or appointment or the secretary’s appointment.

(e) A member of the General Assembly may not:

(1) be an owner or an employee of a business entity that holds a license or registration under this title; or

(2) have an official relationship with a business entity that holds a license or registration under this title.

(f) A former member of the General Assembly, for the 1–year period immediately after the member leaves office, may not:

(1) be an owner or an employee of a business entity that holds a license or registration under this title; or

(2) have an official relationship with a business entity that holds a license or registration under this title.

(g) An employee of the Administration may not:

(1) have a direct or indirect financial, ownership, or management interest, including ownership of any stocks, bonds, or other similar financial instruments, in any cannabis licensee;

(2) have an official relationship with a person who holds a license or registration under this title;

(3) be an elected official of State or local government;

(4) receive or share in, directly or indirectly, the receipts or proceeds of a cannabis licensee; or

(5) have a beneficial interest in a contract for the manufacture or sale of cannabis or the provision of independent consulting services in connection with a cannabis license.
Md. Code, Alcoholic Beverages and Cannabis § 36-302 — MD Code / Article gab / Title 36 / Subtitle 3 / Section 36-302
§36–302.
Status: in_force

(a) A qualifying patient or caregiver may obtain medical cannabis from a dispensary licensed by the Administration.

(b) (1) A qualifying patient who is at least 21 years old may not cultivate more than four cannabis plants.

(2) If two or more qualifying patients who are at least 21 years old reside at the same residence, not more than four cannabis plants may be cultivated at that residence.

(3) Except as provided in paragraphs (1) and (2) of this subsection, a qualifying patient shall comply with the cannabis cultivation requirements established under § 5–601.2 of the Criminal Law Article.

(c) A qualifying patient under the age of 18 years may obtain medical cannabis only through:

(1) the qualifying patient’s caregiver; or

(2) any designated school personnel authorized to administer medical cannabis to a student in accordance with the guidelines established under § 7–446 of the Education Article.

(d) A caregiver may serve not more than five qualifying patients at any time.

(e) (1) Except as provided in paragraph (2) of this subsection, a qualifying patient may have not more than two caregivers.

(2) A qualifying patient under the age of 18 years may have not more than four caregivers.

(f) A sale of cannabis or cannabis products to a qualifying patient is not subject to taxes imposed on the sale of cannabis or cannabis products under § 11–104(k) of the Tax – General Article.

(g) A qualifying patient may not possess more than the amount of cannabis or cannabis–infused product that is authorized in the written certification of the patient.

(h) Designated school personnel described in subsection (c)(2) of this section:

(1) may administer to a student only medical cannabis:

(i) that is obtained through the student’s caregiver; and

(ii) in accordance with dosing, timing, and delivery route instructions as provided by the certifying provider’s written instructions; and

(2) are not required to register with the Administration under this subtitle.

(i) A caregiver may administer medical cannabis to a student who is a qualifying patient of the caregiver on school property, during school–sponsored activities, and while on a school bus.
Md. Code, Alcoholic Beverages and Cannabis § 36-1001 — MD Code / Article gab / Title 36 / Subtitle 10 / Section 36-1001
§36–1001.
Status: in_force

(a) To offer a responsible medical or adult–use cannabis vendor, server, and seller training program, a person shall submit an application to the Administration.

(b) The Administration shall approve the application if the proposed training program meets the minimum educational standards established under subsection (c) of this section.

(c) At a minimum, a training program must:

(1) be taught in a classroom or virtual setting for at least a 2–hour period;

(2) establish program standards, including certification and recertification requirements, record keeping, testing and assessment protocols, and effectiveness evaluations; and

(3) provide a core curriculum of relevant statutory and regulatory provisions, which shall include:

(i) information on required licenses, age requirements, patient registry cards issued by the Administration, maintenance of records, privacy issues, and unlawful acts;

(ii) administrative and criminal liability and license and court sanctions;

(iii) statutory and regulatory requirements for employees and owners;

(iv) statutory and regulatory requirements related to cannabis sale, transfer, and delivery;

(v) acceptable forms of identification, including patient and caregiver identification cards;

(vi) State and local licensing and enforcement; and

(vii) information on serving size, THC and cannabinoid potency, and impairment.
Md. Code, Alcoholic Beverages and Cannabis § 36-903 — MD Code / Article gab / Title 36 / Subtitle 9 / Section 36-903
§36–903.
Status: in_force

(a) (1) An advertisement for a cannabis licensee, cannabis product, or cannabis–related service may not:

(i) violate Title 13, Subtitle 3 of the Commercial Law Article;

(ii) directly or indirectly target individuals under the age of 21 years;

(iii) contain a design, an illustration, a picture, or a representation that:

1. targets or is attractive to minors, including a cartoon character, a mascot, or any other depiction that is commonly used to market products to minors;

2. displays the use of cannabis, including the consumption, smoking, or vaping of cannabis;

3. encourages or promotes cannabis for use as an intoxicant; or

4. is obscene;

(iv) engage in advertising by means of television, radio, Internet, mobile application, social media, or other electronic communication, event sponsorship, or print publication, unless at least 85% of the audience is reasonably expected to be at least 21 years old as determined by reliable and current audience composition data; or

(v) except as provided in paragraph (2) of this subsection, engage in advertising by means of placing an advertisement on the side of a building or another publicly visible location of any form, including a sign, a poster, a placard, a device, a graphic display, an outdoor�billboard, or a freestanding signboard.

(2) A cannabis business may place exterior signage on the premises of the business for the limited purpose of identifying the business to the public.

(b) (1) (i) Subject to subparagraph (ii) of this paragraph, each cannabis–related website shall employ a neutral age–screening mechanism that verifies that the user is at least 21 years old, including by using an age–gate, age–screen, or age verification mechanism before the user may access or view any content and before the website may collect the user’s address, e–mail address, phone number, or contact information to disseminate advertisements.

(ii) If a website is appropriate for a qualifying patient who is under the age of 21 years, the website shall provide an alternative screening mechanism for the qualifying patient.

(2) An advertisement placed on social media or a mobile application shall include a notification that an individual must be at least 21 years old to view the content.

(3) The provisions of this subtitle applicable to cannabis licensees may not be avoided by hiring or contracting with a third party, or outsourcing advertisements that do not comply with this subtitle.

(4) A cannabis licensee may not allow the use of the licensee’s trademarks, brands, names, locations, or other distinguishing characteristics for third–party use for advertisements that do not comply with this subtitle.

(c) The Administration shall adopt regulations to establish procedures for the enforcement of this section.
Md. Code, Alcoholic Beverages and Cannabis § 36-1506 — MD Code / Article gab / Title 36 / Subtitle 15 / Section 36-1506
§36–1506.
Status: in_force

(a) This subtitle does not require a depository institution, entity performing a financial service for or in association with a depository institution, or insurer to provide financial services to a cannabis business, service provider, or any other business.

(b) This subtitle may not be construed to limit or otherwise restrict the general examination, supervisory, and enforcement authority of the Commissioner of Financial Regulation, provided that the basis for any supervisory or enforcement action is not the provision of financial services to a cannabis business or service provider.

(c) This subtitle may not be construed to interfere with the regulation of the business of insurance.
Md. Code, Alcoholic Beverages and Cannabis § 36-902 — MD Code / Article gab / Title 36 / Subtitle 9 / Section 36-902
§36–902.
Status: in_force

An advertisement for cannabis and cannabis products or cannabis–related services that makes therapeutic or medical claims shall:

(1) be supported by competent and reliable scientific evidence; and

(2) include information on the most serious and most common side effects or risks associated with the use of cannabis.
Md. Code, Alcoholic Beverages and Cannabis § 36-203 — MD Code / Article gab / Title 36 / Subtitle 2 / Section 36-203
§36–203.
Status: in_force

(a) The Administration shall:

(1) evaluate the regulations adopted by the Natalie M. LaPrade Medical Cannabis Commission in Title 10, Subtitle 62 of the Code of Maryland Regulations; and

(2) on or before July 1, 2023, adopt emergency regulations to:

(i) carry out the licensure requirements specified under this title;

(ii) implement procedures related to cannabis applications, licenses, and registrations in accordance with this title;

(iii) assist the Comptroller in the collection of taxes imposed on the sale of adult–use cannabis under § 11–104(k) of the Tax – General Article;

(iv) implement inventory management and tracking that does not differentiate between adult–use or medical cannabis or cannabis products before the point of sale, except for products allowed by the Administration for sale only to patients and caregivers; and

(v) establish operating requirements for cannabis licensees or cannabis registrants, including requirements for:

1. security, including lighting, physical security, video, and alarm requirements;

2. safe and secure delivery, transport, and storage of cannabis;

3. preventing the sale or diversion of cannabis and cannabis products to persons under the age of 21 years; and

4. health and safety standards governing the cultivation, manufacture, testing, and dispensing of cannabis or cannabis products.

(b) The emergency regulations that the Administration is required to adopt under subsection (a) of this section shall:

(1) be supplemental to the medical cannabis regulations under Title 10, Subtitle 62 of the Code of Maryland Regulations; and

(2) notwithstanding any other law, remain in effect until the taking effect of nonemergency regulations adopted under subsection (c) of this section.

(c) (1) On or before July 1, 2024, the Administration shall adopt nonemergency regulations to carry out this title.

(2) To the extent practicable, the Administration shall adopt regulations requiring cannabis licensees to transition from a cash system and to use traditional banking services.

(3) The Administration shall adopt regulations:

(i) governing Internet sales of cannabis;

(ii) implementing and supplementing packaging and labeling requirements for cannabis products under § 36–203.1 of this subtitle;

(iii) establishing procedures for the use of point of sale technologies by dispensaries for all transactions in order to verify a consumer’s age using a driver’s license or other valid identification issued by a governmental unit specified by the Administration; and

(iv) establishing health, safety, security, and tracking requirements for the packaging and repackaging of cannabis by a dispensary in accordance with § 36–203.1 of this subtitle.

(d) The regulations adopted by the Administration under this section shall, to the extent practicable, regulate medical and adult–use cannabis in the same manner.
Md. Code, Alcoholic Beverages and Cannabis § 36-1507 — MD Code / Article gab / Title 36 / Subtitle 15 / Section 36-1507
§36–1507.
Status: in_force

The State may not cooperate or aid federal law enforcement authorities attempting to prosecute financial institutions that are lawfully operating within the confines of this subtitle.
Md. Code, Alcoholic Beverages and Cannabis § 36-410 — MD Code / Article gab / Title 36 / Subtitle 4 / Section 36-410
§36–410.
Status: in_force

(a) Beginning July 1, 2023, a cannabis licensee that is operating a dispensary shall:

(1) ensure that it has adequate supply for qualifying patients and caregivers;

(2) set aside operating hours or dedicated service lines to serve only qualifying patients and caregivers; and

(3) as supply becomes available as determined by the Administration, ensure that at least 25% of cannabis and cannabis products in the dispensary are from social equity licensees and growers and processors that do not share common ownership with the dispensary.

(b) Except as provided in subsection (d) of this section, a licensed dispensary may not locate within:

(1) 500 feet of:

(i) a pre–existing primary or secondary school in the State, or a licensed child care center or registered family child care home under Title 9.5 of the Education Article; or

(ii) a pre–existing playground, recreation center, library, public park, or place of worship; or

(2) 1,000 feet of another dispensary under this title.

(c) (1) Except as provided in paragraph (2) of this subsection, a political subdivision may adopt an ordinance reducing, but not increasing, the distance requirements under subsection (b) of this section.

(2) A political subdivision may by ordinance increase the distance limitation for dispensaries under subsection (b)(2) of this section to not more than one–half mile.

(d) The distance requirements under subsection (b) of this section do not apply to a dispensary license that was:

(1) converted under § 36–401(b)(1)(ii) of this subtitle; and

(2) properly zoned and operating before July 1, 2023.

(e) A political subdivision may not adopt an ordinance establishing zoning requirements for licensed dispensaries that are more restrictive than zoning requirements for a retail dealer licensed under this article.

(f) A political subdivision may not adopt an ordinance:

(1) establishing a zoning requirement for a licensed grower cultivating cannabis exclusively outdoors in an area zoned only for agricultural use that is more restrictive than any zoning requirements that existed on June 30, 2023, governing a hemp farm registered under Title 14 of the Agriculture Article in the political subdivision; or

(2) prohibiting outdoor cannabis cultivation on a premises that was properly zoned for outdoor cannabis cultivation on or before June 30, 2023.

(g) A political subdivision may:

(1) by ordinance, establish a distance limitation for dispensaries of up to 100 feet from an area zoned for residential use; or

(2) apply to dispensaries the distance limitation for licensed alcoholic beverage retailers from an area zoned for residential use.

(h) A political subdivision shall grant a waiver to an ordinance that provides a distance requirement for dispensaries under this section for a licensed dispensary that was in operation before April 1, 2024.

(i) A political subdivision that has not adopted an ordinance under subsection (c) of this section before July 1, 2025, is subject to the distance requirements under subsection (b) of this section.
Md. Code, State Personnel and Pensions § 36-102 — MD Code / Article gsp / Title 36 / Subtitle 1 / Section 36-102
§36–102.
Status: in_force

As authorized by former Article 89, §§ 30 through 40 of the Code and subject to applicable federal law, the Secretary of Budget and Management, acting on behalf of this State, may enter into, carry out, modify, or terminate an agreement with the Secretary of the United States Department of Health and Human Services to extend the benefits available under the federal Social Security Act to the employees and officers of this State and its political subdivisions and to the dependents and survivors of those employees and officers.
Md. Code, Alcoholic Beverages and Cannabis § 36-301 — MD Code / Article gab / Title 36 / Subtitle 3 / Section 36-301
§36–301.
Status: in_force

(a) The Administration shall register as a certifying provider an individual who:

(1) meets the requirements of this subtitle; and

(2) submits the required application to the Administration.

(b) To be registered as a certifying provider, a provider shall submit an application to the Administration that includes:

(1) the reasons for including a patient under the care of the provider for the purposes of this subtitle, including the patient’s qualifying medical conditions;

(2) an attestation that a standard patient evaluation will be completed, including a history, a physical examination, a review of symptoms, and other relevant medical information; and

(3) the provider’s plan for the ongoing assessment and follow–up care of a patient and for collecting and analyzing data.

(c) The Administration is encouraged to approve provider applications for the following:

(1) a chronic or debilitating disease or medical condition that results in a patient being admitted into hospice or receiving palliative care;

(2) a chronic or debilitating disease or medical condition or the treatment of a chronic or debilitating disease or medical condition that produces:

(i) cachexia, anorexia, or wasting syndrome;

(ii) severe or chronic pain;

(iii) severe nausea;

(iv) seizures; or

(v) severe or persistent muscle spasms;

(3) glaucoma; or

(4) post–traumatic stress disorder.

(d) The Administration may not limit treatment of a particular medical condition to one class of providers.

(e) The Administration may approve applications that include any other condition that is severe and for which other medical treatments have been ineffective if the symptoms reasonably can be expected to be relieved by the medical use of cannabis.

(f) A certifying provider or the spouse of a certifying provider may not:

(1) receive any gift from a cannabis licensee;

(2) hold an ownership interest in a cannabis licensee or a business that controls a cannabis licensee; or

(3) receive any compensation from a cannabis licensee.

(g) A certifying provider shall issue each written certification in the form required by the Administration.

(h) A certifying provider may discuss medical cannabis with a patient.

(i) (1) A certifying provider registration is valid for 2 years.

(2) The Administration shall grant or deny a renewal of a registration based on the provider’s performance in complying with regulations adopted by the Administration.
Md. Code, Alcoholic Beverages and Cannabis § 36-407 — MD Code / Article gab / Title 36 / Subtitle 4 / Section 36-407
§36–407.
Status: in_force

(a) (1) A person shall obtain an on–site consumption license from the Administration before operating a premises where cannabis may be consumed.

(2) The Administration may issue on–site consumption licenses authorizing an entity to operate a licensed premises in which cannabis or cannabis products may be consumed, but not smoked indoors, in accordance with this title and any regulations adopted under this title.

(3) An on–site consumption establishment may operate only if the political subdivision where the business is located has issued a permit or license that expressly allows the operation of the on–site consumption establishment.

(b) Subject to the limitations in § 36–405 of this subtitle, a political subdivision may:

(1) prohibit the operation of on–site consumption establishments;

(2) prohibit or restrict the smoking or vaping of cannabis at on–site consumption establishments;

(3) adopt zoning and planning requirements for on–site consumption establishments; or

(4) establish hours of operation for on–site consumption establishments.

(c) (1) An on–site consumption license authorizes an entity, for the purposes of on–site consumption, to:

(i) distribute cannabis or cannabis products;

(ii) acquire cannabis or cannabis products from a cannabis licensee in accordance with this title;

(iii) repackage cannabis or cannabis products for the purpose of creating single–serving products; and

(iv) process single–serving products.

(2) An on–site consumption license does not authorize the holder of the license to cultivate cannabis.

(d) (1) Subject to paragraph (2) of this subsection, an on–site consumption establishment may also operate as a food service facility, as defined in § 21–301 of the Health – General Article.

(2) Before operating as a food service facility, the on–site consumption establishment shall obtain from the political subdivision in which the on–site consumption establishment is located all necessary approvals for operating a food service facility, including:

(i) building code permits;

(ii) mechanical code permits;

(iii) a use and occupancy certificate; and

(iv) any other applicable permits or licenses.

(e) An on–site consumption establishment shall comply with the following standards when acting in accordance with subsection (c)(1) of this section:

(1) manufacturing standards established under § 36–203 of this title;

(2) laboratory testing standards established under § 36–203 of this title; and

(3) packaging and labeling standards established under §§ 36–203 and 36–203.1 of this title.

(f) The Administration shall:

(1) maintain a list of all on–site consumption establishments in the State; and

(2) make the list available on its website.

(g) An on–site consumption establishment may not:

(1) allow on–duty employees of the business to consume cannabis on the licensed premises;

(2) distribute or allow the distribution of free samples of cannabis on the licensed premises;

(3) allow the consumption of alcohol on the licensed premises;

(4) allow the smoking or vaping of tobacco or tobacco products on the licensed premises;

(5) allow an activity on the licensed premises that would require an additional license under this title, including growing or dispensing;

(6) allow the indoor smoking of cannabis or cannabis products on the licensed premises;

(7) allow the use or consumption of cannabis by a patron who displays any visible signs of intoxication;

(8) admit onto the licensed premises an individual who is under the age of 21 years;

(9) allow an individual to consume cannabis or cannabis products on the premises if the cannabis or cannabis product was not obtained from the on–site consumption establishment;

(10) allow an individual to remove cannabis or cannabis products from the premises of the establishment; or

(11) sell or distribute cannabis or cannabis products to an individual that are intended as more than a single–serving product.

(h) An on–site consumption establishment shall:

(1) require all employees to successfully complete an annual responsible vendor training program authorized under this title; and

(2) ensure that the display and consumption of cannabis or cannabis products are not visible from outside of the licensed premises.

(i) (1) An on–site cannabis establishment shall educate consumers by providing informational materials regarding the safe consumption of cannabis.

(2) The educational materials provided under paragraph (1) of this subsection must be based on the requirements established by the Cannabis Public Health Advisory Council established under § 13–4502 of the Health – General Article.

(j) This section does not prohibit a county or municipality from adopting additional requirements for education on the safe consumption of cannabis on the premises of a licensed on–site consumption establishment.

(k) A person may have an ownership interest in or control of, including the power to manage and operate, two on–site consumption establishments licensed under this section.
Md. Code, Alcoholic Beverages and Cannabis § 36-1104 — MD Code / Article gab / Title 36 / Subtitle 11 / Section 36-1104
§36–1104.
Status: in_force

(a) In this section, “tetrahydrocannabinol” has the meaning stated in § 36–1102 of this subtitle.

(b) A person may not sell or distribute a product containing tetrahydrocannabinol that violates the potency, packaging, or labeling requirements under § 36–203 or § 36–203.1 of this title or any regulations adopted under those sections.

(c) (1) A person may not sell or distribute a product that is advertised as containing an amount of tetrahydrocannabinol that violates § 36–1102 of this subtitle.

(2) Advertising under paragraph (1) of this subsection includes packaging, labeling, or electronic communication.

(d) The Executive Director may seize, destroy, or confiscate a product that is:

(1) offered or displayed for sale to a consumer in a location that is not appropriately licensed under Subtitle 4 of this title; and

(2) the subject of a violation under subsection (b) or (c) of this section.

(e) (1) If a person who is not a cannabis licensee violates subsection (b) or (c) of this section, the person:

(i) may be charged by a citation; and

(ii) is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000.

(2) If a cannabis licensee violates subsection (b) or (c) of this section, the licensee is subject to disciplinary action by the Administration in accordance with § 36–202 of this title.
Md. Code, Alcoholic Beverages and Cannabis § 36-1404 — MD Code / Article gab / Title 36 / Subtitle 14 / Section 36-1404
§36–1404.
Status: in_force

(a) A loan to a social equity licensee qualifies under the Program if the loan:

(1) satisfies the lending criteria of the lender; and

(2) does not exceed:

(i) for a dispensary, $500,000; or

(ii) for a grower or processor, $1,000,000.

(b) A loan that qualifies under subsection (a) of this section may be short or long term, have fixed or variable rates, and be secured or unsecured.
Md. Code, Alcoholic Beverages and Cannabis § 36-201 — MD Code / Article gab / Title 36 / Subtitle 2 / Section 36-201
§36–201.
Status: in_force

(a) There is a Maryland Cannabis Administration established as an independent unit of State government.

(b) (1) There is a Director of the Administration.

(2) The Governor shall appoint the Director of the Administration with the advice and consent of the Senate.

(3) The Director serves at the pleasure of the Governor.

(c) The Director must have the training and experience, including knowledge of the State cannabis industry and regulatory system, that is needed to direct the work of the Administration.

(d) The Administration may employ staff and retain contractors as provided in the State budget.

(e) The Administration:

(1) shall be responsible for carrying out the requirements and duties established under this title; and

(2) may recommend changes to improve the administration of this title relating to the regulation of cannabis.

(f) The Administration shall administer and enforce this title.
Md. Code, Alcoholic Beverages and Cannabis § 36-702 — MD Code / Article gab / Title 36 / Subtitle 7 / Section 36-702
§36–702.
Status: in_force

(a) The Administration may register an entity to grow, process, test, and transfer cannabis for the purposes of research and development as provided in subsection (b) of this section.

(b) A registration issued under subsection (a) of this section authorizes the registrant only to:

(1) test chemical potency and composition levels;

(2) conduct clinical investigations of cannabis–derived medicinal products;

(3) conduct research on the efficacy and safety of administering cannabis as part of medical treatment;

(4) conduct genomic, horticultural, or agricultural research; and

(5) conduct research on cannabis–affiliated products or systems.

(c) To obtain a research and development registration, an applicant shall submit to the Administration:

(1) an application fee in an amount to be determined by the

Administration; and

(2) an application developed by the Administration.

(d) An applicant for a research and development registration must meet the registration standards and requirements established by the Administration.

(e) (1) A research and development registration is valid for an initial term of 2 years.

(2) A research and development registration is valid for 2 years on renewal.

(f) A research and development registrant may transfer, by sale or donation, cannabis grown within its operation only to other research and development registrants.

(g) A research and development registrant may contract to perform research in conjunction with a public higher education research institution or another research and development registrant.
Md. Code, Alcoholic Beverages and Cannabis § 36-101 — MD Code / Article gab / Title 36 / Subtitle 1 / Section 36-101
§36–101.
Status: in_force

(a) In this title the following words have the meanings indicated.

(b) “Academic research representative” means an individual who is:

(1) an employee or agent of an institution of higher education, a related medical facility, or an affiliated biomedical research firm that filed a registration with the Administration under § 36–701 of this title; and

(2) authorized to purchase medical cannabis for the institution of higher education, related medical facility, or affiliated biomedical research firm.

(c) “Administration” means the Maryland Cannabis Administration established under this title.

(c–1) “Cannabinoid beverage” means a beverage intended for human consumption by oral ingestion that:

(1) is suitable for beverage purposes;

(2) contains 5 milligrams or less of tetrahydrocannabinol, as defined in § 36–1102 of this title, per serving;

(3) is contained as a single–serving product;

(4) is lawfully produced by a cannabis licensee; and

(5) complies with:

(i) the laboratory testing standards established under § 36–203 of this title; and

(ii) the packaging and labeling standards established under §§ 36–203 and 36–203.1 of this title.

(d) “Cannabis agent” means an employee, a volunteer, or any other authorized person who acts for or at the direction of a cannabis licensee or cannabis registrant.

(e) “Cannabis business” means a business licensed or registered by the Administration to operate in the cannabis industry.

(f) “Cannabis concentrate” means a product derived from cannabis that is kief, hashish, bubble hash, oil, wax, or any other product produced by extracting cannabinoids from the plant through the use of solvents, carbon dioxide, or heat, screens, presses, or steam distillation.

(g) “Cannabis–infused product” means oil, wax, ointment, salve, tincture, capsule, suppository, dermal patch, cartridge, or any other product containing cannabis concentrate or usable cannabis that has been processed so that the dried leaves and flowers are integrated into other material.

(h) “Cannabis licensee” means a business licensed by the Administration to operate in the cannabis industry.

(h–1) “Cannabis nursery” means a business that provides cannabis seeds, seedlings, immature plants, or clones to a cannabis business.

(i) “Cannabis products” means products that are composed of cannabis, cannabis concentrate, cannabis extract, or other ingredients and are intended for use or consumption, including cannabinoid beverages, edible products, oils, and tinctures.

(j) “Cannabis registrant” means an independent testing laboratory, a transporter, a security guard company, a waste disposal company, a cannabis nursery, and any other type of cannabis business registered under this title and authorized by the Administration.

(k) (1) “Canopy” means the total square footage of space used by a cannabis licensee for the production of flowering cannabis plants.

(2) “Canopy” includes each layer of flowering cannabis plants grown on any rack or shelving.

(3) “Canopy” does not include square footage used for:

(i) mother stock;

(ii) propagation;

(iii) immature or nonflowering plants;

(iv) processing;

(v) drying;

(vi) curing;

(vii) trimming;

(viii) storage;

(ix) offices;

(x) hallways;

(xi) pathways;

(xii) work areas; or

(xiii) other administrative and nonproduction uses.

(l) (1) “Caregiver” means:

(i) an individual who has agreed to assist with a qualifying patient’s medical use of cannabis; and

(ii) for a qualifying patient under the age of 18 years:

1. a parent or legal guardian; and

2. not more than two additional adults designated by the parent or legal guardian.

(2) “Caregiver” does not include any designated school personnel authorized to administer medical cannabis to a student in accordance with the guidelines established under § 7–446 of the Education Article.

(m) “Certifying provider” means an individual who:

(1) (i) 1. has an active, unrestricted license to practice medicine that was issued by the State Board of Physicians under Title 14 of the Health Occupations Article; and

2. is in good standing with the State Board of Physicians;

(ii) 1. has an active, unrestricted license to practice dentistry that was issued by the State Board of Dental Examiners under Title 4 of the Health Occupations Article; and

2. is in good standing with the State Board of Dental Examiners;

(iii) 1. has an active, unrestricted license to practice podiatry that was issued by the State Board of Podiatric Medical Examiners under Title 16 of the Health Occupations Article; and

2. is in good standing with the State Board of Podiatric Medical Examiners;

(iv) 1. has an active, unrestricted license to practice registered nursing and has an active, unrestricted certification to practice as a nurse practitioner or a nurse midwife that was issued by the State Board of Nursing under Title 8 of the Health Occupations Article; and

2. is in good standing with the State Board of Nursing; or

(v) 1. has an active, unrestricted license to practice as a physician assistant issued by the State Board of Physicians under Title 15 of the Health Occupations Article;

2. has an active collaboration agreement with a patient care team physician who is a certifying provider; and

3. is in good standing with the State Board of Physicians;

(2) has a State controlled dangerous substances registration; and

(3) is registered with the Administration to make cannabis available to patients for medical use in accordance with regulations adopted by the Administration.

(n) “Consumer” means an individual at least 21 years old who purchases cannabis or cannabis products for personal use by individuals at least 21 years old.

(o) (1) “Control” means:

(i) the decision–making authority over the management, operations, or policies that guide a business; or

(ii) authority over the operation of the technical aspects of a business.

(2) “Control” includes:

(i) holding a right to veto significant events;

(ii) the right or authority to make or veto decisions regarding operations and strategic planning, capital allocations, acquisitions, and divestments;

(iii) the right or authority to appoint or remove directors, corporate–level officers, or their equivalent;

(iv) the right or authority to make major marketing, production, and financial decisions; and

(v) the right or authority to execute exclusive contracts or significant contracts in the aggregate of $10,000 or greater on behalf of the licensee.

(p) “Delivery service” means a cannabis licensee authorized to deliver cannabis in accordance with a micro license to operate a dispensary.

(q) “Dispensary” means an entity licensed under this title that acquires, possesses, repackages, transports, sells, distributes, or dispenses cannabis or cannabis products, including tinctures, aerosols, oils, and ointments, related supplies, and educational materials for use by qualifying patients, caregivers, or consumers through a storefront or through a delivery service, based on license type.

(r) “Disproportionately impacted area” means a geographic area identified by the Office of Social Equity that has had above 150% of the State’s 10–year average for cannabis possession charges.

(s) (1) “Edible cannabis product” means a cannabis product intended for human consumption by oral ingestion, in whole or in part.

(2) “Edible cannabis product” includes a cannabis product that dissolves or disintegrates in the mouth.

(3) “Edible cannabis product” does not include any:

(i) cannabis concentrate;

(ii) cannabis–infused product, including an oil, a wax, an ointment, a salve, a tincture, a capsule, a suppository, a dermal patch, or a cartridge; or

(iii) other dosage form that is recognized by the United States Pharmacopeia, the National Formulary, or the U.S. Food and Drug Administration and is approved by the Administration.

(t) “Grower” means an entity licensed under this title that:

(1) cultivates or packages cannabis; and

(2) is authorized by the Administration to provide cannabis to other cannabis licensees and registered independent testing laboratories.

(u) “Incubator space” means a facility operated in accordance with § 36–401(c)(3) of this title.

(v) “Independent testing laboratory” means a facility, an entity, or a site that is registered with the Administration to perform tests related to the inspection and testing of cannabis and products containing cannabis.

(w) “Institution of higher education” has the meaning stated in § 10–101 of the Education Article.

(x) “Micro license” means a license issued in accordance with § 36–401(c)(2) of this title.

(y) “On–site consumption establishment” means an entity licensed under § 36–401(c)(4) of this title to distribute cannabis or cannabis products for on–site consumption other than consumption by smoking indoors.

(z) “Owner” means a person with an ownership interest in a cannabis licensee.

(aa) “Ownership interest” means a direct or indirect equity interest in a cannabis licensee, including in its profits, revenues, shares, or stock.

(bb) “Passive investor” means an individual or an entity that:

(1) holds an aggregate ownership interest of less than 5% in a cannabis licensee; and

(2) does not have control of the cannabis licensee.

(cc) “Principal officer” means a board member, a president, a vice president, a secretary, a treasurer, a partner, an officer, or a managing member, or any other individual with a profit sharing, financial interest, or revenue sharing arrangement, including an individual with the authority to control a cannabis licensee.

(dd) “Processor” means an entity licensed under this title that:

(1) transforms cannabis into another product or an extract and packages and labels the cannabis product; and

(2) is authorized by the Administration to provide cannabis to cannabis licensees and registered independent testing laboratories.

(ee) “Qualifying patient” means an individual who:

(1) has been provided with a written certification by a certifying provider in accordance with a bona fide provider–patient relationship; and

(2) if under the age of 18 years, has a caregiver.

(ee–1) (1) “Single–serving product” means an edible cannabis product that:

(i) is individually packaged for retail sale;

(ii) does not exceed the serving limits established by the regulations of the Administration; and

(iii) is intended for immediate consumption.

(2) “Single–serving product” includes a cannabinoid beverage.

(ff) “Social equity applicant” means an applicant for a cannabis license or cannabis registration that:

(1) has at least 65% ownership and control held by one or more individuals who:

(i) have lived in a disproportionately impacted area for at least 5 of the 10 years immediately preceding the submission of the application;

(ii) attended a public school in a disproportionately impacted area for at least 5 years; or

(iii) for at least 2 years, attended a 4–year institution of higher education in the State where at least 40% of the individuals who attend the institution of higher education are eligible for a Pell Grant; or

(2) meets any other criteria established by the Administration.

(gg) (1) “Social equity licensee” means a social equity applicant who has been awarded a cannabis license or cannabis registration.

(2) “Social equity licensee” includes a grower, processor, or dispensary that:

(i) held a Stage One Preapproval for a license before October 1, 2022; and

(ii) was not operational before October 1, 2022.

(hh) “Standard license” means a license issued in accordance with § 36–401(c)(1) of this title.

(ii) “Transporter” means an entity registered under this title to transport cannabis between cannabis licensees and registered independent testing laboratories.

(jj) (1) “Usable cannabis” means the dried leaves and flowers of the cannabis plant.

(2) “Usable cannabis” does not include seedlings, seeds, stems, stalks, or roots of the plant or the weight of any noncannabis ingredients combined with cannabis, such as ingredients added to prepare a topical administration.

(kk) “Written certification” means a certification that:

(1) is issued by a certifying provider to a qualifying patient with whom the provider has a bona fide provider–patient relationship;

(2) includes a written statement certifying that, in the certifying provider’s professional opinion, after having completed an assessment of the patient’s medical history and current medical condition, the patient has a condition:

(i) that meets the inclusion criteria and does not meet the exclusion criteria of the certifying provider’s application; and

(ii) for which the potential benefits of the medical use of cannabis would likely outweigh the health risks for the patient; and

(3) may include a written statement certifying that, in the certifying provider’s professional opinion, a 30–day supply of medical cannabis would be inadequate to meet the medical needs of the qualifying patient.
Md. Code, Alcoholic Beverages and Cannabis § 36-408 — MD Code / Article gab / Title 36 / Subtitle 4 / Section 36-408
§36–408.
Status: in_force

(a) (1) The Administration shall register at least one independent testing laboratory to test cannabis and cannabis products that are to be sold in the State.

(2) The Administration shall hold medical and adult–use cannabis testing to the same standards.

(b) To be registered as an independent testing laboratory, a laboratory must:

(1) meet the application requirements established by the Administration;

(2) pay an application fee determined by the Administration; and

(3) meet the standards and requirements for accreditation, inspection, and testing established by the Administration.

(c) (1) An independent testing laboratory license is valid for 2 years on initial licensure.

(2) An independent testing laboratory license is valid for 2 years on renewal.

(d) A registered independent testing laboratory is authorized to test and transport cannabis and cannabis products on behalf of cannabis licensees.

(e) (1) A laboratory agent or an employee of an independent testing laboratory may not receive direct or indirect financial compensation, other than reasonable contractual fees to conduct testing, from any entity for which it is conducting testing under this title.

(2) An individual who possesses an interest in or is a laboratory agent employed by an independent testing laboratory, or an immediate family member of the individual, may not possess an interest in or be employed by a cannabis licensee.

(f) Cannabis and cannabis products may not be sold or otherwise marketed under this title if the cannabis or cannabis product has not been tested by an independent testing laboratory and determined to meet the Administration’s testing protocols.

(g) The Administration shall adopt regulations that establish:

(1) the standards and requirements to be met by an independent testing laboratory to obtain a registration;

(2) the standards of care to be followed by an independent testing laboratory; and

(3) the basis and processes for denial, revocation, and suspension of a registration of an independent testing laboratory.

(h) The Administration may inspect an independent testing laboratory registered under this section to ensure compliance with this title and any regulations adopted under this title.

(i) (1) Any registration to operate an independent testing laboratory issued by the Natalie M. LaPrade Medical Cannabis Commission on or before July 1, 2023, shall be valid under this title and shall authorize an independent testing laboratory to perform testing on medical and adult–use cannabis and cannabis products.

(2) The Administration shall convert all independent testing laboratory registrations in accordance with this subsection.
Md. Code, Alcoholic Beverages and Cannabis § 36-803 — MD Code / Article gab / Title 36 / Subtitle 8 / Section 36-803
§36–803.
Status: in_force

The Administration shall publish the following data, organized by month, on a rolling basis and on a publicly accessible part of the Administration’s website:

(1) the number of patients, caregivers, and providers certified under this title;

(2) the wholesale and retail sales of medical and adult–use cannabis, measured by revenue and volume; and

(3) the median consumer price for cannabis and cannabis products.
Md. Code, Alcoholic Beverages and Cannabis § 36-202 — MD Code / Article gab / Title 36 / Subtitle 2 / Section 36-202
§36–202.
Status: reserved

(a) The Administration shall:

(1) develop and maintain a seed–to–sale tracking system that tracks cannabis from either the seed or immature plant stage until the cannabis is sold to a patient, caregiver, or consumer;

(2) conduct financial and criminal background investigations of any person who submits an application for a cannabis license or a cannabis licensee, as required under this title;

(3) develop a process for consumers and qualifying patients to purchase clones and seeds, seedlings, stalks, roots, and stems of the cannabis plant for cultivation in accordance with § 5–601.2 of the Criminal Law Article;

(4) solicit, evaluate, and issue or deny applications for cannabis licenses and cannabis registrations, including:

(i) licenses to operate a cannabis business in accordance with this title; and

(ii) registration for independent testing laboratories, transporters, security guard companies, waste disposal companies, and cannabis nurseries;

(5) award or deny:

(i) a license to operate a cannabis business in accordance with this title; and

(ii) registration to independent testing laboratories, transporters, security guard companies, waste disposal companies, cannabis nurseries, and any other type of cannabis business authorized by the Administration;

(6) conduct announced and unannounced inspections of any business licensed or registered under this title to ensure compliance with this title;

(7) after a determination that a violation of this title or a regulation adopted under this title has occurred, suspend, fine, restrict, or revoke cannabis licenses and cannabis registrations, whether active, expired, or surrendered, or impose any other penalty authorized by this title or any regulation adopted under this title;

(8) (i) give notice and hold a hearing in accordance with Title 10, Subtitle 2 of the State Government Article, for any:

1. contested cannabis license or registration denial; or

2. violation of this title or any regulation adopted under this title;

(ii) administer oaths in a proceeding under this section; and

(iii) subject to subsection (b)(3) of this section, allow the person against whom the action is contemplated to be represented at the hearing by counsel;

(9) adopt regulations necessary to carry out its duties under this title; and

(10) perform any other power authorized or duty required under this title or any other provision of State law.

(b) The Administration may:

(1) issue a subpoena for the attendance of a witness to testify or the production of evidence in connection with:

(i) any disciplinary action under this title; or

(ii) any investigation or proceeding initiated for an alleged violation of this title;

(2) delegate the hearing authority authorized under subsection (a)(8) of this section to an employee within the Administration;

(3) if, after due notice, the person against whom a disciplinary action is contemplated does not appear at a hearing, hear and determine the matter; and

(4) after a hearing under this subsection, fine a cannabis licensee or suspend, restrict, or revoke a cannabis license or a cannabis registration for a violation of:

(i) this title or a regulation adopted under this title; or

(ii) any other State law or regulation related to cannabis or the operations of a cannabis business or registrant.
Md. Code, Alcoholic Beverages and Cannabis § 36-1002 — MD Code / Article gab / Title 36 / Subtitle 10 / Section 36-1002
§36–1002.
Status: in_force

The Administration shall adopt regulations establishing the responsible vendor training program and the minimum standards for the program.
Md. Code, Alcoholic Beverages and Cannabis § 36-1101 — MD Code / Article gab / Title 36 / Subtitle 11 / Section 36-1101
§36–1101.
Status: in_force

(a) A cannabis licensee may not sell, transfer, or deliver cannabis or cannabis products unless the licensee verifies by means of a valid driver’s license or other government–issued photo identification containing the bearer’s date of birth that:

(1) for adult–use cannabis, the consumer is at least 21 years old; or

(2) for medical cannabis, the patient or caregiver is:

(i) registered with the Administration; and

(ii) at least 18 years old.

(b) (1) (i) Except as provided in subparagraph (ii) of this paragraph, a licensee that sells, transfers, or delivers cannabis or cannabis products in violation of subsection (a) of this section is subject to a civil penalty of:

1. $500 for a first violation;

2. $1,000 for a second violation occurring within 24 months after the first violation; and

3. $5,000 for each subsequent violation occurring within 24 months after the immediately preceding violation.

(ii) A violation of subsection (a) of this section that occurs more than 24 months after the immediately preceding violation shall be treated as a first violation.

(2) The Administration may deny a cannabis license to an applicant, reprimand a cannabis licensee, or suspend or revoke a cannabis license if the applicant or licensee violates subsection (a) of this section two or more times in a 24–month period.

(3) In a hearing for an alleged violation of this section, it is a defense that an agent of the defendant examined the consumer’s, patient’s, or caregiver’s driver’s license or other valid identification issued by a governmental unit that positively identified the consumer, patient, or caregiver as meeting the minimum age specified in subsection (a) of this section.

(c) (1) A cannabis licensee may not:

(i) sell, transfer, or deliver cannabis to an individual who is visibly intoxicated;

(ii) offer cannabis or cannabis products as a prize, premium, or consideration for a lottery, contest, game of chance, game of skill, or competition of any kind; or

(iii) conduct direct–to–consumer Internet sales of adult–use cannabis on or before July 1, 2025.

(2) A cannabis licensee that violates paragraph (1) of this subsection is subject to a fine not exceeding $1,000, suspension or revocation of a license, or both.
Md. Code, Alcoholic Beverages and Cannabis § 36-206 — MD Code / Article gab / Title 36 / Subtitle 2 / Section 36-206
§36–206.
Status: in_force

(a) In this section, “Fund” means the Cannabis Regulation and Enforcement Fund.

(b) There is a Cannabis Regulation and Enforcement Fund.

(c) The purpose of the Fund is to provide funds to cover the costs of:

(1) the operation of the Administration;

(2) administering and enforcing this title; and

(3) supporting the Social Equity Partnership Grant Program established under § 1–323 of this article.

(d) The Administration shall administer the Fund.

(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.

(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

(f) The Fund consists of:

(1) fees distributed to the Fund under § 36–205 of this subtitle;

(2) revenue distributed to the Fund under § 2–1302.2 of the Tax – General Article;

(3) interest earnings of the Fund; and

(4) any other money from any other source accepted for the benefit of the Fund, in accordance with any conditions adopted by the Commission for the acceptance of donations or gifts to the Fund.

(g) The Fund may be used for carrying out this title and supporting the Social Equity Partnership Grant Program established under § 1–323 of this article.

(h) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

(2) Any interest earnings of the Fund shall be credited to the Fund.

(i) The Fund is subject to audit by the Office of Legislative Audits as provided for in § 2–1220 of the State Government Article.

(j) (1) On or before March 15 each year, the Administration shall publish on its website a detailed report on revenue distributed to and expenditures from the Fund.

(2) The report shall also be submitted to the General Assembly in accordance with § 2–1257 of the State Government Article.
Md. Code, Alcoholic Beverages and Cannabis § 36-406 — MD Code / Article gab / Title 36 / Subtitle 4 / Section 36-406
§36–406.
Status: reserved

(a) The Administration may issue incubator space licenses authorizing a nonprofit entity to operate a licensed premises in which micro licensees may operate a cannabis business.

(b) Subject to subsection (d) of this section, the Maryland Economic Development Corporation, in consultation with the Administration, shall acquire and construct or refurbish at least one facility to operate an incubator space.

(c) After the completion of the construction or refurbishment of a facility acquired under subsection (b) of this section, ownership of the facility shall be transferred to the Department of General Services.

(d) The Department of General Services shall contract with a nonprofit organization to operate a facility under subsection (b) of this section.

(e) An incubator space licensee may purchase equipment to be used by other incubator space licensees in the same incubator space.

(f) The Administration shall adopt regulations to establish a Maryland Incubator Program based on the best practices in other states.
Md. Code, Alcoholic Beverages and Cannabis § 36-205 — MD Code / Article gab / Title 36 / Subtitle 2 / Section 36-205
§36–205.
Status: in_force

(a) The Administration may impose registration and other fees to defray the costs of:

(1) the operations of the Administration and the Commission; and

(2) administering and enforcing this title.

(b) If fees are imposed under subsection (a) of this section, the Administration shall deposit the fees collected in the Cannabis Regulation and Enforcement Fund established under § 36–206 of this subtitle.
Md. Code, Alcoholic Beverages and Cannabis § 36-405 — MD Code / Article gab / Title 36 / Subtitle 4 / Section 36-405
§36–405.
Status: in_force

(a) In this section, “unduly burden” includes imposing a zoning requirement or restriction on the use of property by a cannabis licensee that is more restrictive than the requirements established under § 36–410 of this subtitle.

(b) A political subdivision may:

(1) establish reasonable zoning requirements for cannabis businesses; and

(2) decide how to distribute its allocation of revenue under § 2–1302.2 of the Tax – General Article.

(c) A political subdivision may not:

(1) establish zoning or other requirements that unduly burden a cannabis licensee;

(2) impose licensing, operating, or other fees or requirements on a cannabis licensee that are disproportionately greater or more burdensome than those imposed on other businesses with a similar impact on the area where the cannabis licensee is located;

(3) prohibit transportation through or deliveries within the political subdivision by cannabis businesses located in other political subdivisions;

(4) prevent an entity whose license may be converted under § 36–401(b)(1)(ii) of this subtitle and that is in compliance with all relevant medical cannabis regulations from being granted the license conversion; or

(5) negotiate or enter into an agreement with a cannabis licensee or an applicant for a cannabis license requiring that the cannabis licensee or applicant provide money, donations, in–kind contributions, services, or anything of value to the political subdivision.

(d) The use of a facility by a cannabis licensee is not required to be submitted to, or approved by, a county or municipal zoning board, authority, or unit if:

(1) the facility was properly zoned and operating on or before January 1, 2023; or

(2) the cannabis licensee:

(i) held a Stage One Preapproval for a license before October 1, 2022; and

(ii) was not actively engaged in the growing, processing, or dispensing of cannabis before October 1, 2022.

(e) A political subdivision or special taxing district may not impose a tax on cannabis.
Md. Code, Alcoholic Beverages and Cannabis § 36-1504 — MD Code / Article gab / Title 36 / Subtitle 15 / Section 36-1504
§36–1504.
Status: in_force

For the purposes of 18 U.S.C. §§ 1956 and 1957 and all other provisions of federal law, the proceeds from a transaction involving activities of a cannabis business or service provider may not be considered proceeds from an unlawful activity solely because:

(1) the transaction involves proceeds from a cannabis business or service provider; or

(2) the transaction involves proceeds from:

(i) cannabis activities conducted by a cannabis business; or

(ii) activities conducted by a service provider.
Md. Code, Alcoholic Beverages and Cannabis § 36-503 — MD Code / Article gab / Title 36 / Subtitle 5 / Section 36-503
§36–503.
Status: in_force

(a) A cannabis license granted under this title is not transferable except as provided in this section.

(b) To transfer ownership or control of a license issued under this title, a licensee:

(1) shall submit to the Administration:

(i) an application fee in an amount to be determined by the Administration in accordance with this subtitle; and

(ii) an application developed by the Administration; and

(2) must meet the requirements for transfer of ownership or control established by the Administration under this title.

(c) (1) A cannabis licensee, including a cannabis licensee whose license was converted in accordance with § 36–401 of this title, may not transfer ownership or control of the license for a period of at least 5 years following licensure.

(2) The 5–year period specified in paragraph (1) of this subsection does not include the time period that a business is considered by the Administration to be in a preapproved licensure status.

(3) The limitations under this subsection do not apply to:

(i) transfers as a result of the disability, incapacity, or death of the owner of a cannabis license, bankruptcy or receivership in accordance with a lending agreement of a cannabis licensee, or court order; or

(ii) the sale of a cannabis licensee to the licensee’s employees through an employee stock ownership plan as defined in § 407(d)(6)(A) of the Employee Retirement Income Security Act of 1974.

(4) The limitations under this subsection do not apply to a transfer of ownership that is the subject of a legally binding settlement agreement resulting from litigation commenced on or before January 1, 2023.
Md. Code, Alcoholic Beverages and Cannabis § 36-1003 — MD Code / Article gab / Title 36 / Subtitle 10 / Section 36-1003
§36–1003.
Status: in_force

A provider of an approved training program shall:

(1) maintain its training records at its principal place of business for at least 4 years; and

(2) make the records available for inspection by the Administration.
Md. Code, Alcoholic Beverages and Cannabis § 36-204 — MD Code / Article gab / Title 36 / Subtitle 2 / Section 36-204
§36–204.
Status: in_force

(a) (1) Subject to paragraph (2) of this subsection, the Administration shall establish and maintain a State cannabis testing laboratory.

(2) (i) On or before July 1, 2023, the Maryland Department of Agriculture or the Maryland Department of Health may enter into a memorandum of understanding with the Administration to test cannabis at an existing State–owned laboratory if doing so would be a more economic and efficient alternative to the establishment of a testing laboratory under paragraph (1) of this subsection.

(ii) If the Maryland Department of Agriculture or the Maryland Department of Health and the Administration determine that co–locating cannabis testing at an existing State–owned laboratory is not operationally feasible, sufficient funding shall be provided in the annual budget to comply with paragraph (1) of this subsection.

(b) The State cannabis testing laboratory is responsible for:

(1) developing and maintaining a cannabis laboratory reference library that contains cannabis testing methodologies in the areas of:

(i) potency;

(ii) homogeneity;

(iii) detection and quantitation of contaminants; and

(iv) solvents;

(2) establishing standard operating procedures for sample collection, preparation, and analysis of cannabis by independent testing laboratories;

(3) conducting proficiency testing of independent testing laboratories;

(4) remediating problems with independent testing laboratories;

(5) conducting compliance testing on cannabis samples analyzed by independent testing laboratories; and

(6) identifying and detecting the presence and purity of cannabis, alcohol, and tobacco in samples or seized contraband in support of the regulatory authority of the Administration.

(c) Independent testing laboratories licensed under § 36–408 of this title shall provide materials for the cannabis laboratory reference library.

(d) The State cannabis testing laboratory shall hold medical and adult–use cannabis testing to the same standards.
Md. Code, Alcoholic Beverages and Cannabis § 36-901 — MD Code / Article gab / Title 36 / Subtitle 9 / Section 36-901
§36–901.
Status: in_force

(a) In this subtitle, “advertisement” means the publication, dissemination, or circulation of any auditory, visual, digital, oral, or written matter, which is directly or indirectly calculated to induce the sale of cannabis or any cannabis–related product or service.

(b) “Advertisement” does not include packaging or labeling.
Md. Code, Alcoholic Beverages and Cannabis § 36-1505 — MD Code / Article gab / Title 36 / Subtitle 15 / Section 36-1505
§36–1505.
Status: in_force

(a) With respect to providing a financial service to a cannabis business or a service provider, a depository institution, entity performing a financial service for or in association with a depository institution, or insurer that provides a financial service to a cannabis business or service provider, and the officers, directors, and employees of that depository institution, entity, or insurer may not be held liable under any State law or regulation:

(1) solely for providing the financial service; or

(2) for further investing any income derived from the financial service.

(b) An insurer that engages in the business of insurance with a cannabis business or service provider or that otherwise engages with a person in a transaction allowed under State law related to cannabis, and the officers, directors, and employees of that insurer may not be held liable under State law or regulation:

(1) solely for engaging in the business of insurance; or

(2) for further investing any income derived from the business of insurance.

(c) A depository institution that has a legal interest in the collateral for a loan or another financial service provided to an owner, employee, or operator of a cannabis business or service provider, or to an owner or operator of real estate or equipment that is leased or sold to a cannabis business or service provider, may not be subject to criminal, civil, or administrative forfeiture of that legal interest under State law for providing the loan or other financial service.
Md. Code, Alcoholic Beverages and Cannabis § 36-403 — MD Code / Article gab / Title 36 / Subtitle 4 / Section 36-403
§36–403.
Status: in_force

(a) (1) This subsection applies only to a business that holds a cannabis license and was physically and actively engaged in the cultivation or processing of medical cannabis before October 1, 2022.

(2) (i) Subject to subsection (e) of this section and except as provided in subparagraph (ii) of this paragraph:

1. each grower and processor shall pay a one–time conversion fee of 10% of the total gross revenue of the grower or processor in 2022, but not more than $2,000,000; and

2. each dispensary shall pay a one–time conversion fee of 8% of the total gross revenue of the dispensary in 2022, but not more than $2,000,000.

(ii) The amount of the conversion fees in subparagraph (i) of this paragraph may not be less than $100,000.

(3) If a business holds a grower and processor license, the fee shall be based on total gross revenue from both license types.

(b) (1) This subsection applies only to a business that:

(i) held a Stage One Preapproval for a license before October 1, 2022; and

(ii) was not operational before October 1, 2022.

(2) Subject to subsection (e) of this section, a grower or processor shall pay a one–time conversion fee of $50,000.

(3) Subject to subsection (e) of this section, a dispensary shall pay a one–time conversion fee of $25,000.

(c) (1) This subsection applies only to an applicant applying for a cannabis license under § 36–404 of this subtitle.

(2) An applicant for a standard license, an incubator space license, or an on–site consumption license shall pay an application fee of $5,000.

(3) An applicant for a micro license shall pay an application fee of $1,000.

(d) (1) Subject to paragraphs (2) and (3) of this subsection, the Administration shall establish licensing and renewal fees for all cannabis licenses.

(2) Except as provided in paragraph (3) of this subsection, the licensing and renewal fees established under paragraph (1) of this subsection for standard cannabis licensees may not exceed:

(i) for initial license fees, $50,000; and

(ii) for renewal license fees, the lesser of 10% of the standard cannabis licensee’s annual gross revenue or $50,000.

(3) The Administration shall reduce licensing and renewal fees by at least 50% for social equity licenses, micro licenses, incubator space licenses, and on–site consumption licenses.

(e) (1) The one–time conversion fees under this section:

(i) may be paid in separate installments; and

(ii) shall be paid in full on or before January 1, 2025.

(2) The amount of any licensing or renewal fee paid by a business for fiscal year 2023 to the Natalie M. LaPrade Medical Cannabis Commission shall be credited against the one–time conversion fee assessed under this section.

(f) All fees collected under this section shall be paid to the Administration.
Md. Code, Alcoholic Beverages and Cannabis § 36-501 — MD Code / Article gab / Title 36 / Subtitle 5 / Section 36-501
§36–501.
Status: in_force

(a) A cannabis agent must be registered with the Administration before the agent may volunteer or work for a cannabis licensee or cannabis registrant.

(b) A cannabis agent registration is valid for 2 years.

(c) (1) Except as provided in paragraph (2) of this subsection, to register as a cannabis agent with the Administration, an individual must:

(i) be at least 21 years old; and

(ii) if the records are legally accessible, obtain a State and national criminal history records check in accordance with § 36–505 of this subtitle.

(2) A cannabis agent who is employed to provide security services for a cannabis licensee or cannabis registrant as a security guard or by a security guard agency, as defined in § 19–101 of the Business Occupations and Professions Article, is not required to obtain a State or national criminal history records check in accordance with § 36–505 of this subtitle if the cannabis agent is authorized to provide security guard services under Title 19, Subtitle 4 of the Business Occupations and Professions Article.

(d) (1) The Administration may not register as a cannabis agent an individual who does not meet the criteria established under subsection (c) of this section.

(2) The Administration may disqualify an individual from registering as a cannabis agent if the individual has been convicted of or pleaded nolo contendere to a crime involving moral turpitude, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside.

(e) The Administration may not deny a cannabis agent registration based on any cannabis–related offenses occurring before July 1, 2023.

(f) A cannabis licensee shall require each registered cannabis agent to complete an annual responsible vendor training program authorized under this title.

(g) A registration of a cannabis agent issued by the Natalie M. LaPrade Medical Cannabis Commission on or before July 1, 2023, shall:

(1) be valid under this title; and

(2) authorize the cannabis agent to be employed by or volunteer with a licensed cannabis business.
Md. Code, Alcoholic Beverages and Cannabis § 36-505 — MD Code / Article gab / Title 36 / Subtitle 5 / Section 36-505
§36–505.
Status: in_force

(a) In this section, “Central Repository” means the Criminal Justice Information System Central Repository in the Department of Public Safety and Correctional Services.

(b) As part of an application to the Central Repository for a State and national criminal history records check, an applicant shall submit to the Central Repository:

(1) two complete sets of legible fingerprints taken on forms approved by the Director of the Central Repository and the Director of the Federal Bureau of Investigation;

(2) the fee authorized under § 10–221(b)(7) of the Criminal Procedure Article for access to State criminal history records; and

(3) the processing fee required by the Federal Bureau of Investigation for a national criminal history records check.

(c) In accordance with §§ 10–201 through 10–228 of the Criminal Procedure Article, the Central Repository shall forward to the Administration and to the applicant the applicant’s criminal history record information.

(d) If an applicant has made two or more unsuccessful attempts at securing legible fingerprints, the Administration may accept an alternate method of a criminal history records check as permitted by the Director of the Central Repository and the Director of the Federal Bureau of Investigation.

(e) Information obtained from the Central Repository under this section shall be:

(1) confidential and may not be redisseminated; and

(2) used only for the purpose of registration under this title.

(f) (1) The Administration may issue a temporary cannabis agent registration if:

(i) a pre–employment background check completed by a third–party vendor is submitted to and approved by the Administration; and

(ii) the applicant has submitted an application to the Central Repository, as required in subsection (b) of this section.

(2) The period of a temporary cannabis agent registration issued under paragraph (1) of this subsection may not exceed 90 calendar days.

(g) The subject of a criminal history records check under this section may contest the criminal history record information disseminated by the Central Repository, as provided in § 10–223 of the Criminal Procedure Article.
Md. Code, Alcoholic Beverages and Cannabis § 36-802 — MD Code / Article gab / Title 36 / Subtitle 8 / Section 36-802
§36–802.
Status: in_force

On or before January 1 each year, the Administration shall report to the General Assembly, in accordance with § 2–1257 of the State Government Article, on:

(1) the amount of cannabis cultivated, processed, and dispensed by standard and micro licenses; and

(2) whether the supply of cannabis is adequate to meet the demand for cannabis and cannabis products.
Md. Code, Alcoholic Beverages and Cannabis § 36-601 — MD Code / Article gab / Title 36 / Subtitle 6 / Section 36-601
§36–601.
Status: in_force

(a) In this section, “Fund” means the Medical Cannabis Compassionate Use Fund.

(b) There is a Medical Cannabis Compassionate Use Fund.

(c) (1) The Administration shall:

(i) administer the Fund; and

(ii) subject to paragraph (2) of this subsection, establish fees in an amount necessary to provide revenues for the purposes of the Fund.

(2) The Administration may not impose the fees established under paragraph (1)(ii) of this subsection on a licensed medical cannabis grower, processor, or dispensary before the grower, processor, or dispensary is an operational cannabis licensee under this title.

(d) The purpose of the Fund is to provide access to cannabis for individuals enrolled in the Maryland Medical Assistance Program or in the Veterans Affairs Maryland Health Care System, including access to, at a reduced cost:

(1) an assessment of the patient’s medical history and current medical condition; and

(2) medical cannabis from a licensed dispensary.

(e) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.

(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

(f) The Fund consists of:

(1) fees established under subsection (c)(1)(ii) of this section;

(2) fines assessed by the Administration under this title;

(3) money appropriated in the State budget to the Fund;

(4) interest earnings; and

(5) any other money from any other source accepted for the benefit of the Fund.

(g) (1) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

(2) Any interest earnings of the Fund shall be credited to the Fund.

(h) The Fund shall be subject to an audit by the Office of Legislative Audits as provided for in § 2–1220 of the State Government Article.

(i) The Comptroller shall pay out money from the Fund as directed by the Administration.

(j) No part of the Fund may revert or be credited to:

(1) the General Fund of the State; or

(2) any other special fund of the State.

(k) Expenditures from the Fund may be made only in accordance with the State budget.

(l) The Administration shall adopt regulations to carry out this section.
Md. Code, Alcoholic Beverages and Cannabis § 36-1406 — MD Code / Article gab / Title 36 / Subtitle 14 / Section 36-1406
§36–1406.
Status: in_force

(a) The Department shall establish a loan loss reserve account for a lender when the lender enrolls its first loan under the Program.

(b) At the time of enrollment:

(1) the borrower shall make a payment to the account of between 0% and 7% of the enrolled loan amount;

(2) the lender shall make a payment to the account of at least 2% of the enrolled amount; and

(3) the Administration shall make a matching payment to the account in an amount equal to the borrower and lender’s aggregate payment under items (1) and (2) of this subsection.

(c) The loan loss reserve account of a lender shall be available for the lender to withdraw if a borrower defaults on a qualifying loan.

(d) The Department shall collaborate with the Office of Social Equity established under § 9–4108 of the State Government Article to identify and assist businesses with obtaining financing from the Program.

(e) The Department shall establish procedures for a lender to withdraw from the Program.
Md. Code, Alcoholic Beverages and Cannabis § 36-1103 — MD Code / Article gab / Title 36 / Subtitle 11 / Section 36-1103
§36–1103.
Status: in_force

(a) In this section, “genuine ownership” means an ownership interest in an applicant, a cannabis licensee, or a registrant that is evidenced by record ownership in which the owner, regardless of the amount of capital or assets that the owner contributes to the applicant, licensee, or registrant, enjoys the customary incidents of ownership and shares in the profits and losses of the cannabis license or registration proportionate to the percentage of the owner’s interest in the cannabis license or registration.

(b) A person may not apply for or hold a cannabis license or registration under this title if an ownership interest in the license or registration is:

(1) nominal or without the benefits and risks of genuine ownership or control; and

(2) for the limited purpose of satisfying the requirements under this title for cannabis licensees or registrants, including requirements for social equity licensees or registrants.

(c) A person who violates subsection (b) of this section is guilty of a misdemeanor and on conviction is subject to a fine of not more than $2,500 or imprisonment for not more than 1 year or both.

(d) Subject to the hearing provisions of § 36–202 of this title, the Administration shall deny an application for a cannabis license or registration or revoke a cannabis license or registration under this title if the applicant, cannabis licensee, or registrant is:

(1) determined by the Administration to be in violation of subsection (b) of this section; or

(2) convicted of violating subsection (b) of this section.