<section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-101" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="1" subtitle_name="Definitions"> <level label="a"> <text>In this title the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Academic research representative” means an individual who is:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>authorized to purchase medical cannabis for the institution of higher education, related medical facility, or affiliated biomedical research firm.</text> </level> </level> <level label="c"> <text>“Administration” means the Maryland Cannabis Administration established under this title.</text> </level> <level label="c–1"> <text>“Cannabinoid beverage” means a beverage intended for human consumption by oral ingestion that:</text> <level label="1"> <text>is suitable for beverage purposes;</text> </level> <level label="2"> <text>contains 5 milligrams or less of tetrahydrocannabinol, as defined in § 36–1102 of this title, per serving;</text> </level> <level label="3"> <text>is contained as a single–serving product;</text> </level> <level label="4"> <text>is lawfully produced by a cannabis licensee; and</text> </level> <level label="5"> <text>complies with:</text> <level label="i"> <text>the laboratory testing standards established under § 36–203 of this title; and</text> </level> <level label="ii"> <text>the packaging and labeling standards established under §§ 36–203 and 36–203.1 of this title.</text> </level> </level> </level> <level label="d"> <text>“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.</text> </level> <level label="e"> <text>“Cannabis business” means a business licensed or registered by the Administration to operate in the cannabis industry.</text> </level> <level label="f"> <text>“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.</text> </level> <level label="g"> <text>“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.</text> </level> <level label="h"> <text>“Cannabis licensee” means a business licensed by the Administration to operate in the cannabis industry.</text> </level> <level label="h–1"> <text>“Cannabis nursery” means a business that provides cannabis seeds, seedlings, immature plants, or clones to a cannabis business.</text> </level> <level label="i"> <text>“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.</text> </level> <level label="j"> <text>“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.</text> </level> <level label="k"> <level label="1"> <text>“Canopy” means the total square footage of space used by a cannabis licensee for the production of flowering cannabis plants.</text> </level> <level label="2"> <text>“Canopy” includes each layer of flowering cannabis plants grown on any rack or shelving.</text> </level> <level label="3"> <text>“Canopy” does not include square footage used for:</text> <level label="i"> <text>mother stock;</text> </level> <level label="ii"> <text>propagation;</text> </level> <level label="iii"> <text>immature or nonflowering plants;</text> </level> <level label="iv"> <text>processing;</text> </level> <level label="v"> <text>drying;</text> </level> <level label="vi"> <text>curing;</text> </level> <level label="vii"> <text>trimming;</text> </level> <level label="viii"> <text>storage;</text> </level> <level label="ix"> <text>offices;</text> </level> <level label="x"> <text>hallways;</text> </level> <level label="xi"> <text>pathways;</text> </level> <level label="xii"> <text>work areas; or</text> </level> <level label="xiii"> <text>other administrative and nonproduction uses.</text> </level> </level> </level> <level label="l"> <level label="1"> <text>“Caregiver” means:</text> <level label="i"> <text>an individual who has agreed to assist with a qualifying patient’s medical use of cannabis; and</text> </level> <level label="ii"> <text>for a qualifying patient under the age of 18 years:</text> <level label="1"> <text>a parent or legal guardian; and</text> </level> <level label="2"> <text>not more than two additional adults designated by the parent or legal guardian.</text> </level> </level> </level> <level label="2"> <text>“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.</text> </level> </level> <level label="m"> <text>“Certifying provider” means an individual who:</text> <level label="1"> <level label="i"> <level label="1"> <text>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</text> </level> <level label="2"> <text>is in good standing with the State Board of Physicians;</text> </level> </level> <level label="ii"> <level label="1"> <text>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</text> </level> <level label="2"> <text>is in good standing with the State Board of Dental Examiners;</text> </level> </level> <level label="iii"> <level label="1"> <text>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</text> </level> <level label="2"> <text>is in good standing with the State Board of Podiatric Medical Examiners;</text> </level> </level> <level label="iv"> <level label="1"> <text>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</text> </level> <level label="2"> <text>is in good standing with the State Board of Nursing; or</text> </level> </level> <level label="v"> <level label="1"> <text>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;</text> </level> <level label="2"> <text>has an active collaboration agreement with a patient care team physician who is a certifying provider; and</text> </level> <level label="3"> <text>is in good standing with the State Board of Physicians;</text> </level> </level> </level> <level label="2"> <text>has a State controlled dangerous substances registration; and</text> </level> <level label="3"> <text>is registered with the Administration to make cannabis available to patients for medical use in accordance with regulations adopted by the Administration.</text> </level> </level> <level label="n"> <text>“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.</text> </level> <level label="o"> <level label="1"> <text>“Control” means:</text> <level label="i"> <text>the decision–making authority over the management, operations, or policies that guide a business; or</text> </level> <level label="ii"> <text>authority over the operation of the technical aspects of a business.</text> </level> </level> <level label="2"> <text>“Control” includes:</text> <level label="i"> <text>holding a right to veto significant events;</text> </level> <level label="ii"> <text>the right or authority to make or veto decisions regarding operations and strategic planning, capital allocations, acquisitions, and divestments;</text> </level> <level label="iii"> <text>the right or authority to appoint or remove directors, corporate–level officers, or their equivalent;</text> </level> <level label="iv"> <text>the right or authority to make major marketing, production, and financial decisions; and</text> </level> <level label="v"> <text>the right or authority to execute exclusive contracts or significant contracts in the aggregate of $10,000 or greater on behalf of the licensee.</text> </level> </level> </level> <level label="p"> <text>“Delivery service” means a cannabis licensee authorized to deliver cannabis in accordance with a micro license to operate a dispensary.</text> </level> <level label="q"> <text>“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.</text> </level> <level label="r"> <text>“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.</text> </level> <level label="s"> <level label="1"> <text>“Edible cannabis product” means a cannabis product intended for human consumption by oral ingestion, in whole or in part.</text> </level> <level label="2"> <text>“Edible cannabis product” includes a cannabis product that dissolves or disintegrates in the mouth.</text> </level> <level label="3"> <text>“Edible cannabis product” does not include any:</text> <level label="i"> <text>cannabis concentrate;</text> </level> <level label="ii"> <text>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</text> </level> <level label="iii"> <text>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.</text> </level> </level> </level> <level label="t"> <text>“Grower” means an entity licensed under this title that:</text> <level label="1"> <text>cultivates or packages cannabis; and</text> </level> <level label="2"> <text>is authorized by the Administration to provide cannabis to other cannabis licensees and registered independent testing laboratories.</text> </level> </level> <level label="u"> <text>“Incubator space” means a facility operated in accordance with § 36–401(c)(3) of this title.</text> </level> <level label="v"> <text>“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.</text> </level> <level label="w"> <text>“Institution of higher education” has the meaning stated in § 10–101 of the Education Article.</text> </level> <level label="x"> <text>“Micro license” means a license issued in accordance with § 36–401(c)(2) of this title.</text> </level> <level label="y"> <text>“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.</text> </level> <level label="z"> <text>“Owner” means a person with an ownership interest in a cannabis licensee.</text> </level> <level label="aa"> <text>“Ownership interest” means a direct or indirect equity interest in a cannabis licensee, including in its profits, revenues, shares, or stock.</text> </level> <level label="bb"> <text>“Passive investor” means an individual or an entity that:</text> <level label="1"> <text>holds an aggregate ownership interest of less than 5% in a cannabis licensee; and</text> </level> <level label="2"> <text>does not have control of the cannabis licensee.</text> </level> </level> <level label="cc"> <text>“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.</text> </level> <level label="dd"> <text>“Processor” means an entity licensed under this title that:</text> <level label="1"> <text>transforms cannabis into another product or an extract and packages and labels the cannabis product; and</text> </level> <level label="2"> <text>is authorized by the Administration to provide cannabis to cannabis licensees and registered independent testing laboratories.</text> </level> </level> <level label="ee"> <text>“Qualifying patient” means an individual who:</text> <level label="1"> <text>has been provided with a written certification by a certifying provider in accordance with a bona fide provider–patient relationship; and</text> </level> <level label="2"> <text>if under the age of 18 years, has a caregiver.</text> </level> </level> <level label="ee–1"> <level label="1"> <text>“Single–serving product” means an edible cannabis product that:</text> <level label="i"> <text>is individually packaged for retail sale;</text> </level> <level label="ii"> <text>does not exceed the serving limits established by the regulations of the Administration; and</text> </level> <level label="iii"> <text>is intended for immediate consumption.</text> </level> </level> <level label="2"> <text>“Single–serving product” includes a cannabinoid beverage.</text> </level> </level> <level label="ff"> <text>“Social equity applicant” means an applicant for a cannabis license or cannabis registration that:</text> <level label="1"> <text>has at least 55% ownership and control held by one or more individuals who:</text> <level label="i"> <text>have lived in a disproportionately impacted area for at least 5 of the 10 years immediately preceding the submission of the application;</text> </level> <level label="ii"> <text>attended a public school in a disproportionately impacted area for at least 5 years; or</text> </level> <level label="iii"> <text>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</text> </level> </level> <level label="2"> <text>meets any other criteria established by the Administration.</text> </level> </level> <level label="gg"> <level label="1"> <text>“Social equity licensee” means a social equity applicant who has been awarded a cannabis license or cannabis registration.</text> </level> <level label="2"> <text>“Social equity licensee” includes a grower, processor, or dispensary that:</text> <level label="i"> <text>held a Stage One Preapproval for a license before October 1, 2022; and</text> </level> <level label="ii"> <text>was not operational before October 1, 2022.</text> </level> </level> </level> <level label="hh"> <text>“Standard license” means a license issued in accordance with § 36–401(c)(1) of this title.</text> </level> <level label="ii"> <text>“Transporter” means an entity registered under this title to transport cannabis between cannabis licensees and registered independent testing laboratories.</text> </level> <level label="jj"> <level label="1"> <text>“Usable cannabis” means the dried leaves and flowers of the cannabis plant.</text> </level> <level label="2"> <text>“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.</text> </level> </level> <level label="kk"> <text>“Written certification” means a certification that:</text> <level label="1"> <text>is issued by a certifying provider to a qualifying patient with whom the provider has a bona fide provider–patient relationship;</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>that meets the inclusion criteria and does not meet the exclusion criteria of the certifying provider’s application; and</text> </level> <level label="ii"> <text>for which the potential benefits of the medical use of cannabis would likely outweigh the health risks for the patient; and</text> </level> </level> <level label="3"> <text>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.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-201" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="2" subtitle_name="Maryland Cannabis Administration"> <level label="a"> <text>There is a Maryland Cannabis Administration established as an independent unit of State government.</text> </level> <level label="b"> <level label="1"> <text>There is a Director of the Administration.</text> </level> <level label="2"> <text>The Governor shall appoint the Director of the Administration with the advice and consent of the Senate.</text> </level> <level label="3"> <text>The Director serves at the pleasure of the Governor.</text> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>The Administration may employ staff and retain contractors as provided in the State budget.</text> </level> <level label="e"> <text>The Administration:</text> <level label="1"> <text>shall be responsible for carrying out the requirements and duties established under this title; and</text> </level> <level label="2"> <text>may recommend changes to improve the administration of this title relating to the regulation of cannabis.</text> </level> </level> <level label="f"> <text>The Administration shall administer and enforce this title.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-202" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="2" subtitle_name="Maryland Cannabis Administration"> <level label="a"> <text>The Administration shall:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>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;</text> </level> <level label="4"> <text>solicit, evaluate, and issue or deny applications for cannabis licenses and cannabis registrations, including:</text> <level label="i"> <text>licenses to operate a cannabis business in accordance with this title; and</text> </level> <level label="ii"> <text>registration for independent testing laboratories, transporters, security guard companies, waste disposal companies, and cannabis nurseries;</text> </level> </level> <level label="5"> <text>award or deny:</text> <level label="i"> <text>a license to operate a cannabis business in accordance with this title; and</text> </level> <level label="ii"> <text>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;</text> </level> </level> <level label="6"> <text>conduct announced and unannounced inspections of any business licensed or registered under this title to ensure compliance with this title;</text> </level> <level label="7"> <text>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;</text> </level> <level label="8"> <level label="i"> <text>give notice and hold a hearing in accordance with Title 10, Subtitle 2 of the State Government Article, for any:</text> <level label="1"> <text>contested cannabis license or registration denial; or</text> </level> <level label="2"> <text>violation of this title or any regulation adopted under this title;</text> </level> </level> <level label="ii"> <text>administer oaths in a proceeding under this section; and</text> </level> <level label="iii"> <text>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;</text> </level> </level> <level label="9"> <text>adopt regulations necessary to carry out its duties under this title; and</text> </level> <level label="10"> <text>perform any other power authorized or duty required under this title or any other provision of State law.</text> </level> </level> <level label="b"> <text>The Administration may:</text> <level label="1"> <text>issue a subpoena for the attendance of a witness to testify or the production of evidence in connection with:</text> <level label="i"> <text>any disciplinary action under this title; or</text> </level> <level label="ii"> <text>any investigation or proceeding initiated for an alleged violation of this title;</text> </level> </level> <level label="2"> <text>delegate the hearing authority authorized under subsection (a)(8) of this section to an employee within the Administration;</text> </level> <level label="3"> <text>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</text> </level> <level label="4"> <text>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:</text> <level label="i"> <text>this title or a regulation adopted under this title; or</text> </level> <level label="ii"> <text>any other State law or regulation related to cannabis or the operations of a cannabis business or registrant.</text> </level> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-203" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="2" subtitle_name="Maryland Cannabis Administration"> <level label="a"> <text>The Administration shall:</text> <level label="1"> <text>evaluate the regulations adopted by the Natalie M. LaPrade Medical Cannabis Commission in Title 10, Subtitle 62 of the Code of Maryland Regulations; and</text> </level> <level label="2"> <text>on or before July 1, 2023, adopt emergency regulations to:</text> <level label="i"> <text>carry out the licensure requirements specified under this title;</text> </level> <level label="ii"> <text>implement procedures related to cannabis applications, licenses, and registrations in accordance with this title;</text> </level> <level label="iii"> <text>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;</text> </level> <level label="iv"> <text>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</text> </level> <level label="v"> <text>establish operating requirements for cannabis licensees or cannabis registrants, including requirements for:</text> <level label="1"> <text>security, including lighting, physical security, video, and alarm requirements;</text> </level> <level label="2"> <text>safe and secure delivery, transport, and storage of cannabis;</text> </level> <level label="3"> <text>preventing the sale or diversion of cannabis and cannabis products to persons under the age of 21 years; and</text> </level> <level label="4"> <text>health and safety standards governing the cultivation, manufacture, testing, and dispensing of cannabis or cannabis products.</text> </level> </level> </level> </level> <level label="b"> <text>The emergency regulations that the Administration is required to adopt under subsection (a) of this section shall:</text> <level label="1"> <text>be supplemental to the medical cannabis regulations under Title 10, Subtitle 62 of the Code of Maryland Regulations; and</text> </level> <level label="2"> <text>notwithstanding any other law, remain in effect until the taking effect of nonemergency regulations adopted under subsection (c) of this section.</text> </level> </level> <level label="c"> <level label="1"> <text>On or before July 1, 2024, the Administration shall adopt nonemergency regulations to carry out this title.</text> </level> <level label="2"> <text>To the extent practicable, the Administration shall adopt regulations requiring cannabis licensees to transition from a cash system and to use traditional banking services.</text> </level> <level label="3"> <text>The Administration shall adopt regulations:</text> <level label="i"> <text>governing Internet sales of cannabis;</text> </level> <level label="ii"> <text>implementing and supplementing packaging and labeling requirements for cannabis products under § 36–203.1 of this subtitle;</text> </level> <level label="iii"> <text>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</text> </level> <level label="iv"> <text>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.</text> </level> </level> </level> <level label="d"> <text>The regulations adopted by the Administration under this section shall, to the extent practicable, regulate medical and adult–use cannabis in the same manner.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-203.1" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="2" subtitle_name="Maryland Cannabis Administration"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>A package of cannabis for distribution to a consumer or qualifying patient shall:</text> <level label="1"> <text>conform to:</text> <level label="i"> <text>child–resistant packaging requirements established under 16 C.F.R. § 1700.15(b)(1); and</text> </level> <level label="ii"> <text>tamper–evident packaging;</text> </level> </level> <level label="2"> <text>provide that packaging and labeling shall include:</text> <level label="i"> <text>a finished product lot number and expiration date if applicable;</text> </level> <level label="ii"> <text>a statement:</text> <level label="1"> <text>that consumption of cannabis may impair your ability to drive a car or operate machinery, use extreme caution;</text> </level> <level label="2"> <text>of potential risks associated with cannabis use, especially during pregnancy or breast feeding; and</text> </level> <level label="3"> <text>that this package contains cannabis, keep out of the reach of children and animals;</text> </level> </level> <level label="iii"> <text>the name, address, and phone number of the dispensary that sold the product to report an adverse event;</text> </level> <level label="iv"> <text>any allergen warning required by law;</text> </level> <level label="v"> <text>a listing of noncannabis ingredients; and</text> </level> <level label="vi"> <text>an itemization, including weight:</text> <level label="1"> <text>of all cannabinoid and terpene ingredients specified for the product; and</text> </level> <level label="2"> <text>concentrations of any cannabinoid of less than 1% printed with a leading zero before the decimal point.</text> </level> </level> </level> </level> <level label="c"> <text>Cannabis labeling and packaging may not include:</text> <level label="1"> <text>subject to subsection (d) of this section, any image that may appeal to children including:</text> <level label="i"> <text>images of food, candy, baked goods, cereal, fruit, and beverages; and</text> </level> <level label="ii"> <text>a resemblance to the trademarked characteristic product–specialized packaging of any commercially available candy, snack, baked good, cereal, or beverage;</text> </level> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>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</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="d"> <text>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.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-204" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="2" subtitle_name="Maryland Cannabis Administration"> <level label="a"> <level label="1"> <text>Subject to paragraph (2) of this subsection, the Administration shall establish and maintain a State cannabis testing laboratory.</text> </level> <level label="2"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="b"> <text>The State cannabis testing laboratory is responsible for:</text> <level label="1"> <text>developing and maintaining a cannabis laboratory reference library that contains cannabis testing methodologies in the areas of:</text> <level label="i"> <text>potency;</text> </level> <level label="ii"> <text>homogeneity;</text> </level> <level label="iii"> <text>detection and quantitation of contaminants; and</text> </level> <level label="iv"> <text>solvents;</text> </level> </level> <level label="2"> <text>establishing standard operating procedures for sample collection, preparation, and analysis of cannabis by independent testing laboratories;</text> </level> <level label="3"> <text>conducting proficiency testing of independent testing laboratories;</text> </level> <level label="4"> <text>remediating problems with independent testing laboratories;</text> </level> <level label="5"> <text>conducting compliance testing on cannabis samples analyzed by independent testing laboratories; and</text> </level> <level label="6"> <text>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.</text> </level> </level> <level label="c"> <text>Independent testing laboratories licensed under § 36–408 of this title shall provide materials for the cannabis laboratory reference library.</text> </level> <level label="d"> <text>The State cannabis testing laboratory shall hold medical and adult–use cannabis testing to the same standards.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-205" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="2" subtitle_name="Maryland Cannabis Administration"> <level label="a"> <text>The Administration may impose registration and other fees to defray the costs of:</text> <level label="1"> <text>the operations of the Administration and the Commission; and</text> </level> <level label="2"> <text>administering and enforcing this title.</text> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-206" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="2" subtitle_name="Maryland Cannabis Administration"> <level label="a"> <text>In this section, “Fund” means the Cannabis Regulation and Enforcement Fund.</text> </level> <level label="b"> <text>There is a Cannabis Regulation and Enforcement Fund.</text> </level> <level label="c"> <text>The purpose of the Fund is to provide funds to cover the costs of:</text> <level label="1"> <text>the operation of the Administration;</text> </level> <level label="2"> <text>administering and enforcing this title; and</text> </level> <level label="3"> <text>supporting the Social Equity Partnership Grant Program established under § 1–323 of this article.</text> </level> </level> <level label="d"> <text>The Administration shall administer the Fund.</text> </level> <level label="e"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="f"> <text>The Fund consists of:</text> <level label="1"> <text>fees distributed to the Fund under § 36–205 of this subtitle;</text> </level> <level label="2"> <text>revenue distributed to the Fund under § 2–1302.2 of the Tax – General Article;</text> </level> <level label="3"> <text>interest earnings of the Fund; and</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="g"> <text>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.</text> </level> <level label="h"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any interest earnings of the Fund shall be credited to the Fund.</text> </level> </level> <level label="i"> <text>The Fund is subject to audit by the Office of Legislative Audits as provided for in § 2–1220 of the State Government Article.</text> </level> <level label="j"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The report shall also be submitted to the General Assembly in accordance with § 2–1257 of the State Government Article.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-301" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="3" subtitle_name="Medical Use of Cannabis"> <level label="a"> <text>The Administration shall register as a certifying provider an individual who:</text> <level label="1"> <text>meets the requirements of this subtitle; and</text> </level> <level label="2"> <text>submits the required application to the Administration.</text> </level> </level> <level label="b"> <text>To be registered as a certifying provider, a provider shall submit an application to the Administration that includes:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>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</text> </level> <level label="3"> <text>the provider’s plan for the ongoing assessment and follow–up care of a patient and for collecting and analyzing data.</text> </level> </level> <level label="c"> <text>The Administration is encouraged to approve provider applications for the following:</text> <level label="1"> <text>a chronic or debilitating disease or medical condition that results in a patient being admitted into hospice or receiving palliative care;</text> </level> <level label="2"> <text>a chronic or debilitating disease or medical condition or the treatment of a chronic or debilitating disease or medical condition that produces:</text> <level label="i"> <text>cachexia, anorexia, or wasting syndrome;</text> </level> <level label="ii"> <text>severe or chronic pain;</text> </level> <level label="iii"> <text>severe nausea;</text> </level> <level label="iv"> <text>seizures; or</text> </level> <level label="v"> <text>severe or persistent muscle spasms;</text> </level> </level> <level label="3"> <text>glaucoma; or</text> </level> <level label="4"> <text>post–traumatic stress disorder.</text> </level> </level> <level label="d"> <text>The Administration may not limit treatment of a particular medical condition to one class of providers.</text> </level> <level label="e"> <text>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.</text> </level> <level label="f"> <text>A certifying provider or the spouse of a certifying provider may not:</text> <level label="1"> <text>receive any gift from a cannabis licensee;</text> </level> <level label="2"> <text>hold an ownership interest in a cannabis licensee or a business that controls a cannabis licensee; or</text> </level> <level label="3"> <text>receive any compensation from a cannabis licensee.</text> </level> </level> <level label="g"> <text>A certifying provider shall issue each written certification in the form required by the Administration.</text> </level> <level label="h"> <text>A certifying provider may discuss medical cannabis with a patient.</text> </level> <level label="i"> <level label="1"> <text>A certifying provider registration is valid for 2 years.</text> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-302" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="3" subtitle_name="Medical Use of Cannabis"> <level label="a"> <text>A qualifying patient or caregiver may obtain medical cannabis from a dispensary licensed by the Administration.</text> </level> <level label="b"> <level label="1"> <text>A qualifying patient who is at least 21 years old may not cultivate more than four cannabis plants.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="c"> <text>A qualifying patient under the age of 18 years may obtain medical cannabis only through:</text> <level label="1"> <text>the qualifying patient’s caregiver; or</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <text>A caregiver may serve not more than five qualifying patients at any time.</text> </level> <level label="e"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, a qualifying patient may have not more than two caregivers.</text> </level> <level label="2"> <text>A qualifying patient under the age of 18 years may have not more than four caregivers.</text> </level> </level> <level label="f"> <text>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.</text> </level> <level label="g"> <text>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.</text> </level> <level label="h"> <text>Designated school personnel described in subsection (c)(2) of this section:</text> <level label="1"> <text>may administer to a student only medical cannabis:</text> <level label="i"> <text>that is obtained through the student’s caregiver; and</text> </level> <level label="ii"> <text>in accordance with dosing, timing, and delivery route instructions as provided by the certifying provider’s written instructions; and</text> </level> </level> <level label="2"> <text>are not required to register with the Administration under this subtitle.</text> </level> </level> <level label="i"> <text>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.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-401" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="4" subtitle_name="Cannabis Licensing"> <level label="a"> <level label="1"> <text>A person must obtain a cannabis license issued by the Administration to operate a cannabis business.</text> </level> <level label="2"> <text>A cannabis license issued under this subtitle:</text> <level label="i"> <text>authorizes the holder of the license to operate a medical and adult–use cannabis business;</text> </level> <level label="ii"> <text>is valid for 5 years on initial licensure and 5 years on renewal; and</text> </level> <level label="iii"> <text>may be transferred only in accordance with Subtitle 5 of this title.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>The Administration shall:</text> <level label="i"> <text>issue standard licenses, micro licenses, incubator space licenses, and on–site consumption licenses in accordance with this title;</text> </level> <level label="ii"> <text>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:</text> <level label="1"> <text>a conversion fee is paid in accordance with § 36–403 of this subtitle; and</text> </level> <level label="2"> <text>the business complies with the ownership restrictions under subsection (e) of this section;</text> </level> </level> <level label="iii"> <text>set production, processing, sales, and other limitations and requirements for all license types;</text> </level> <level label="iv"> <text>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</text> </level> <level label="v"> <text>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.</text> </level> </level> <level label="2"> <text>The Administration may:</text> <level label="i"> <text>inspect a cannabis licensee to ensure compliance with this title and the regulations adopted under this title;</text> </level> <level label="ii"> <text>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;</text> </level> <level label="iii"> <text>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</text> </level> <level label="iv"> <text>conditionally award cannabis licenses.</text> </level> </level> </level> <level label="c"> <level label="1"> <text>A standard license authorizes the holder of the license:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>for processors, to process more than 2,000 pounds of cannabis per year, as calculated by the Administration; and</text> </level> <level label="iii"> <text>for dispensaries, to operate a store at a physical location that sells cannabis or cannabis products.</text> </level> </level> <level label="2"> <text>A micro license authorizes the holder of the license:</text> <level label="i"> <text>for growers, to operate not more than 10,000 square feet of indoor canopy or its equivalent, as calculated by the Administration;</text> </level> <level label="ii"> <text>for processors, to process not more than 2,000 pounds of cannabis per year, as calculated by the Administration; and</text> </level> <level label="iii"> <text>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 20 registered cannabis agents.</text> </level> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <text>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.</text> </level> </level> <level label="d"> <text>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:</text> <level label="1"> <text>for standard licenses:</text> <level label="i"> <text>75 grower licenses;</text> </level> <level label="ii"> <text>100 processor licenses; and</text> </level> <level label="iii"> <text>300 dispensary licenses;</text> </level> </level> <level label="2"> <text>for micro licenses:</text> <level label="i"> <text>100 grower licenses;</text> </level> <level label="ii"> <text>100 processor licenses; and</text> </level> <level label="iii"> <text>10 dispensary licenses;</text> </level> </level> <level label="3"> <text>for incubator space licenses, 10 licenses; and</text> </level> <level label="4"> <text>for on–site consumption licenses, 50 licenses.</text> </level> </level> <level label="e"> <level label="1"> <text>This subsection applies to all licenses, including licenses converted under subsection (b)(1)(ii) of this section.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>for standard licenses and micro licenses:</text> <level label="1"> <text>one grower licensee;</text> </level> <level label="2"> <text>one processor licensee; and</text> </level> <level label="3"> <text>not more than four dispensary licensees;</text> </level> </level> <level label="ii"> <text>for incubator space licenses, not more than two licensees; and</text> </level> <level label="iii"> <text>for on–site consumption licenses, not more than two licensees.</text> </level> </level> <level label="3"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="4"> <text>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.</text> </level> </level> <level label="f"> <level label="1"> <text>The holder of a cannabis license may not surrender the license and apply for a new license in the same or a similar category.</text> </level> <level label="2"> <text>The limitation under paragraph (1) of this subsection applies to:</text> <level label="i"> <text>affiliates, holding companies, parent companies, or other related entities;</text> </level> <level label="ii"> <text>individuals and firms with identical or substantially identical business or economic interests;</text> </level> <level label="iii"> <text>persons with common investments; and</text> </level> <level label="iv"> <text>firms that are economically dependent on each other through contractual or other relationships.</text> </level> </level> </level> <level label="g"> <text>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, 2027.</text> </level> <level label="h"> <text>A license issued under this title:</text> <level label="1"> <text>is not property and does not confer property rights; and</text> </level> <level label="2"> <text>is subject to:</text> <level label="i"> <text>suspension, revocation, and restrictions authorized by law; and</text> </level> <level label="ii"> <text>regulations authorized under this article.</text> </level> </level> </level> <level label="i"> <level label="1"> <text>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:</text> <level label="i"> <text>may not:</text> <level label="1"> <text>operate under the license; or</text> </level> <level label="2"> <text>renew the license; but</text> </level> </level> <level label="ii"> <text>may continue to hold the license for resale to another person for conversion under this subtitle.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-402" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="4" subtitle_name="Cannabis Licensing"> <level label="a"> <text>It is the intent of the General Assembly to preserve production availability for new adult–use cannabis cultivation licenses issued under this subtitle.</text> </level> <level label="b"> <level label="1"> <text>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:</text> <level label="i"> <text>if the licensee is a grower, adhere to the expansion limitations specified under paragraph (2) of this subsection; and</text> </level> <level label="ii"> <text>pay the conversion fee required under § 36–403 of this subtitle.</text> </level> </level> <level label="2"> <level label="i"> <text>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:</text> <level label="1"> <text>if the canopy is under 25,000 square feet, to 25,000 square feet or by 20%, whichever is greater;</text> </level> <level label="2"> <text>if the canopy is at or above 25,000 square feet, by 20%; or</text> </level> <level label="3"> <text>if the cannabis licensee has a square footage expansion that was preapproved before December 31, 2022, the preapproved expansion or 20%, whichever is greater.</text> </level> </level> <level label="ii"> <text>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.</text> </level> <level label="iii"> <text>An operational business described under subparagraph (i) of this paragraph may begin to expand its canopy of operations:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>for the remaining total square footage authorized under subparagraph (i) or (ii) of this paragraph on or after May 1, 2024.</text> </level> </level> <level label="iv"> <text>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:</text> <level label="1"> <text>held a Stage One Preapproval for a license before October 1, 2022; and</text> </level> <level label="2"> <text>was not operational before October 1, 2022.</text> </level> </level> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <level label="1"> <level label="i"> <text>This paragraph applies to all licensed growers.</text> </level> <level label="ii"> <text>A licensed grower shall accurately calculate and report annually to the Administration its flowering cannabis plant canopy area.</text> </level> <level label="iii"> <text>The canopy�area is measured in accordance with the definition of “canopy” established under § 36–101 of this title.</text> </level> <level label="iv"> <text>For the purpose of measuring canopy, 1 square foot of indoor canopy is equal to 4 square feet of outdoor canopy.</text> </level> <level label="v"> <text>The maximum amount of space for cannabis production may not exceed the canopy authorized under this section.</text> </level> <level label="vi"> <text>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:</text> <level label="1"> <text>reduce the canopy of the licensed grower by the same percentage as it exceeds the authorized canopy; and</text> </level> <level label="2"> <text>seize, destroy, confiscate, or place an administrative hold on any flowering cannabis plants produced in excess of the canopy.</text> </level> </level> <level label="vii"> <text>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.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>As a condition of licensure, the licensed grower shall:</text> <level label="i"> <text>comply with the standards adopted under paragraph (1) of this subsection; and</text> </level> <level label="ii"> <text>negotiate in good faith with employees and any legitimate labor organization recognized by the Administration.</text> </level> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-403" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="4" subtitle_name="Cannabis Licensing"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <level label="i"> <text>Subject to subsection (e) of this section and except as provided in subparagraph (ii) of this paragraph:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="ii"> <text>The amount of the conversion fees in subparagraph (i) of this paragraph may not be less than $100,000.</text> </level> </level> <level label="3"> <text>If a business holds a grower and processor license, the fee shall be based on total gross revenue from both license types.</text> </level> </level> <level label="b"> <level label="1"> <text>This subsection applies only to a business that:</text> <level label="i"> <text>held a Stage One Preapproval for a license before October 1, 2022; and</text> </level> <level label="ii"> <text>was not operational before October 1, 2022.</text> </level> </level> <level label="2"> <text>Subject to subsection (e) of this section, a grower or processor shall pay a one–time conversion fee of $50,000.</text> </level> <level label="3"> <text>Subject to subsection (e) of this section, a dispensary shall pay a one–time conversion fee of $25,000.</text> </level> </level> <level label="c"> <level label="1"> <text>This subsection applies only to an applicant applying for a cannabis license under § 36–404 of this subtitle.</text> </level> <level label="2"> <text>An applicant for a standard license, an incubator space license, or an on–site consumption license shall pay an application fee of $5,000.</text> </level> <level label="3"> <text>An applicant for a micro license shall pay an application fee of $1,000.</text> </level> </level> <level label="d"> <level label="1"> <text>Subject to paragraphs (2) and (3) of this subsection, the Administration shall establish licensing and renewal fees for all cannabis licenses.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>for initial license fees, $50,000; and</text> </level> <level label="ii"> <text>for renewal license fees, the lesser of 10% of the standard cannabis licensee’s annual gross revenue or $50,000.</text> </level> </level> <level label="3"> <text>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.</text> </level> </level> <level label="e"> <level label="1"> <text>The one–time conversion fees under this section:</text> <level label="i"> <text>may be paid in separate installments; and</text> </level> <level label="ii"> <text>shall be paid in full on or before January 1, 2025.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="f"> <text>All fees collected under this section shall be paid to the Administration.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-404" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="4" subtitle_name="Cannabis Licensing"> <level label="a"> <level label="1"> <text>On or before January 1, 2024, the Administration shall begin issuing first round licenses in accordance with subsection (d) of this section.</text> </level> <level label="2"> <text>On or after May 1, 2024, the Administration shall begin issuing second round licenses in accordance with subsection (e) or (f) of this section.</text> </level> <level label="3"> <text>Subject to paragraphs (1) and (2) of this subsection, the Administration may issue licenses in accordance with subsection (g) of this section.</text> </level> </level> <level label="b"> <level label="1"> <text>The Administration shall:</text> <level label="i"> <text>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;</text> </level> <level label="ii"> <text>connect potential social equity applicants with the Office of Social Equity;</text> </level> <level label="iii"> <text>accept and process applications for licenses:</text> <level label="1"> <text>in response to a request for applications issued under this section;</text> </level> <level label="2"> <text>for a period of 30 calendar days; and</text> </level> <level label="3"> <text>beginning on a date that is at least 60 calendar days after the date on which the Administration issued the request for applications;</text> </level> </level> <level label="iv"> <text>award cannabis licenses in at least two separate rounds in accordance with this section; and</text> </level> <level label="v"> <text>reserve a reasonable number of licenses to allow micro licenses to transition to standard licenses, as determined in regulations by the Administration.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>The Administration may not:</text> <level label="i"> <text>accept more than one application per license type from an applicant in any round;</text> </level> <level label="ii"> <text>accept more than two applications from an applicant in any round;</text> </level> <level label="iii"> <text>require that an applicant possess or own a property or facility to operate a cannabis business at the time of application;</text> </level> <level label="iv"> <text>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</text> </level> <level label="v"> <text>conduct a market demand study before the first round licenses are issued.</text> </level> </level> <level label="4"> <text>The Administration may adopt regulations concerning the equity and fairness of the pool of applicants throughout the application process.</text> </level> </level> <level label="c"> <text>To be licensed, an applicant shall submit to the Administration:</text> <level label="1"> <text>an application fee in accordance with § 36–403 of this subtitle; and</text> </level> <level label="2"> <text>an application developed by the Administration under this title.</text> </level> </level> <level label="d"> <level label="1"> <text>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:</text> <level label="i"> <text>for standard licenses:</text> <level label="1"> <text>20 grower licenses;</text> </level> <level label="2"> <text>40 processor licenses; and</text> </level> <level label="3"> <text>80 dispensary licenses;</text> </level> </level> <level label="ii"> <text>for micro licenses:</text> <level label="1"> <text>30 grower licenses;</text> </level> <level label="2"> <text>30 processor licenses; and</text> </level> <level label="3"> <text>10 dispensary licenses; and</text> </level> </level> <level label="iii"> <text>10 incubator space licenses.</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>a detailed operational plan for the safe, secure, and effective cultivation, manufacture, or dispensing of cannabis;</text> </level> <level label="ii"> <text>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</text> </level> <level label="iii"> <text>a detailed diversity plan.</text> </level> </level> <level label="3"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>First round application submissions for all license types are limited to social equity applicants.</text> </level> </level> <level label="4"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="e"> <text>For the second round of licensing, the Administration shall issue licenses in accordance with subsection (f) or (g) of this section.</text> </level> <level label="f"> <level label="1"> <text>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:</text> <level label="i"> <text>for standard licenses:</text> <level label="1"> <text>25 grower licenses;</text> </level> <level label="2"> <text>25 processor licenses; and</text> </level> <level label="3"> <text>120 dispensary licenses;</text> </level> </level> <level label="ii"> <text>for micro licenses:</text> <level label="1"> <text>70 grower licenses; and</text> </level> <level label="2"> <text>70 processor licenses; and</text> </level> </level> <level label="iii"> <text>10 incubator space licenses.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="g"> <level label="1"> <text>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:</text> <level label="i"> <text>for standard licenses:</text> <level label="1"> <text>25 grower licenses;</text> </level> <level label="2"> <text>25 processor licenses; and</text> </level> <level label="3"> <text>120 dispensary licenses;</text> </level> </level> <level label="ii"> <text>for micro licenses:</text> <level label="1"> <text>70 grower licenses; and</text> </level> <level label="2"> <text>70 processor licenses; and</text> </level> </level> <level label="iii"> <text>10 incubator space licenses.</text> </level> </level> <level label="2"> <text>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:</text> <level label="i"> <text>a detailed operational plan for the safe, secure, and effective cultivation, manufacture, or dispensing of cannabis;</text> </level> <level label="ii"> <text>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</text> </level> <level label="iii"> <text>a detailed diversity plan.</text> </level> </level> </level> <level label="3"> <text>Application submissions for micro licenses and on–site consumption licenses under this subsection are limited to social equity applicants.</text> </level> <level label="h"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Administration shall award licenses as needed in accordance with a market demand study.</text> </level> <level label="3"> <text>The Administration may:</text> <level label="i"> <text>limit some or all of the licenses issued under this paragraph to social equity applicants; and</text> </level> <level label="ii"> <text>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.</text> </level> </level> </level> <level label="i"> <level label="1"> <text>The findings and evidence relied on by the General Assembly for the continuation of the Minority Business Enterprise Program under Title 14, Subtitle 3 of the State Finance and Procurement Article are incorporated in this subsection.</text> </level> <level label="2"> <text>To the extent practicable and authorized by the U.S. Constitution, a cannabis licensee shall comply with the State’s Minority Business Enterprise Program.</text> </level> <level label="3"> <text>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 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, and any future disparity studies or related analyses, 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.</text> </level> <level label="4"> <text>On or before 6 months after the issuance of a cannabis license under § 36–401 of this subtitle, the 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.</text> </level> <level label="5"> <text>To the extent practicable, the goals and procedures specified in paragraph (4) 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.</text> </level> <level label="6"> <text>On and after July 1, 2031, the provisions of this subsection and any regulations adopted in accordance with this subsection shall be of no effect and may not be enforced.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-405" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="4" subtitle_name="Cannabis Licensing"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>A political subdivision may:</text> <level label="1"> <text>establish reasonable zoning requirements for cannabis businesses; and</text> </level> <level label="2"> <text>decide how to distribute its allocation of revenue under § 2–1302.2 of the Tax – General Article.</text> </level> </level> <level label="c"> <text>A political subdivision may not:</text> <level label="1"> <text>establish zoning or other requirements that unduly burden a cannabis licensee;</text> </level> <level label="2"> <text>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;</text> </level> <level label="3"> <text>prohibit transportation through or deliveries within the political subdivision by cannabis businesses located in other political subdivisions;</text> </level> <level label="4"> <text>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</text> </level> <level label="5"> <text>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.</text> </level> </level> <level label="d"> <text>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:</text> <level label="1"> <text>the facility was properly zoned and operating on or before January 1, 2023; or</text> </level> <level label="2"> <text>the cannabis licensee:</text> <level label="i"> <text>held a Stage One Preapproval for a license before October 1, 2022; and</text> </level> <level label="ii"> <text>was not actively engaged in the growing, processing, or dispensing of cannabis before October 1, 2022.</text> </level> </level> </level> <level label="e"> <text>A political subdivision or special taxing district may not impose a tax on cannabis.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-406" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="4" subtitle_name="Cannabis Licensing"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>The Department of General Services shall contract with a nonprofit organization to operate a facility under subsection (b) of this section.</text> </level> <level label="e"> <text>An incubator space licensee may purchase equipment to be used by other incubator space licensees in the same incubator space.</text> </level> <level label="f"> <text>The Administration shall adopt regulations to establish a Maryland Incubator Program based on the best practices in other states.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-407" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="4" subtitle_name="Cannabis Licensing"> <level label="a"> <level label="1"> <text>A person shall obtain an on–site consumption license from the Administration before operating a premises where cannabis may be consumed.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="b"> <text>Subject to the limitations in § 36–405 of this subtitle, a political subdivision may:</text> <level label="1"> <text>prohibit the operation of on–site consumption establishments;</text> </level> <level label="2"> <text>prohibit or restrict the smoking or vaping of cannabis at on–site consumption establishments;</text> </level> <level label="3"> <text>adopt zoning and planning requirements for on–site consumption establishments; or</text> </level> <level label="4"> <text>establish hours of operation for on–site consumption establishments.</text> </level> </level> <level label="c"> <level label="1"> <text>An on–site consumption license authorizes an entity, for the purposes of on–site consumption, to:</text> <level label="i"> <text>distribute cannabis or cannabis products;</text> </level> <level label="ii"> <text>acquire cannabis or cannabis products from a cannabis licensee in accordance with this title;</text> </level> <level label="iii"> <text>repackage cannabis or cannabis products for the purpose of creating single–serving products; and</text> </level> <level label="iv"> <text>process single–serving products.</text> </level> </level> <level label="2"> <text>An on–site consumption license does not authorize the holder of the license to cultivate cannabis.</text> </level> </level> <level label="d"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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:</text> <level label="i"> <text>building code permits;</text> </level> <level label="ii"> <text>mechanical code permits;</text> </level> <level label="iii"> <text>a use and occupancy certificate; and</text> </level> <level label="iv"> <text>any other applicable permits or licenses.</text> </level> </level> </level> <level label="e"> <text>An on–site consumption establishment shall comply with the following standards when acting in accordance with subsection (c)(1) of this section:</text> <level label="1"> <text>manufacturing standards established under § 36–203 of this title;</text> </level> <level label="2"> <text>laboratory testing standards established under § 36–203 of this title; and</text> </level> <level label="3"> <text>packaging and labeling standards established under §§ 36–203 and 36–203.1 of this title.</text> </level> </level> <level label="f"> <text>The Administration shall:</text> <level label="1"> <text>maintain a list of all on–site consumption establishments in the State; and</text> </level> <level label="2"> <text>make the list available on its website.</text> </level> </level> <level label="g"> <text>An on–site consumption establishment may not:</text> <level label="1"> <text>allow on–duty employees of the business to consume cannabis on the licensed premises;</text> </level> <level label="2"> <text>distribute or allow the distribution of free samples of cannabis on the licensed premises;</text> </level> <level label="3"> <text>allow the consumption of alcohol on the licensed premises;</text> </level> <level label="4"> <text>allow the smoking or vaping of tobacco or tobacco products on the licensed premises;</text> </level> <level label="5"> <text>allow an activity on the licensed premises that would require an additional license under this title, including growing or dispensing;</text> </level> <level label="6"> <text>allow the indoor smoking of cannabis or cannabis products on the licensed premises;</text> </level> <level label="7"> <text>allow the use or consumption of cannabis by a patron who displays any visible signs of intoxication;</text> </level> <level label="8"> <text>admit onto the licensed premises an individual who is under the age of 21 years;</text> </level> <level label="9"> <text>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;</text> </level> <level label="10"> <text>allow an individual to remove cannabis or cannabis products from the premises of the establishment; or</text> </level> <level label="11"> <text>sell or distribute cannabis or cannabis products to an individual that are intended as more than a single–serving product.</text> </level> </level> <level label="h"> <text>An on–site consumption establishment shall:</text> <level label="1"> <text>require all employees to successfully complete a cannabis agent training program authorized under this title:</text> <level label="i"> <text>within 90 days of a new employee’s start date; and</text> </level> <level label="ii"> <text>at least once every 2 years; and</text> </level> </level> <level label="2"> <text>ensure that the display and consumption of cannabis or cannabis products are not visible from outside of the licensed premises.</text> </level> </level> <level label="i"> <level label="1"> <text>An on–site cannabis establishment shall educate consumers by providing informational materials regarding the safe consumption of cannabis.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="j"> <text>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.</text> </level> <level label="k"> <text>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.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-408" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="4" subtitle_name="Cannabis Licensing"> <level label="a"> <level label="1"> <text>The Administration shall register at least one independent testing laboratory to test cannabis and cannabis products that are to be sold in the State.</text> </level> <level label="2"> <text>The Administration shall hold medical and adult–use cannabis testing to the same standards.</text> </level> </level> <level label="b"> <text>To be registered as an independent testing laboratory, a laboratory must:</text> <level label="1"> <text>meet the application requirements established by the Administration;</text> </level> <level label="2"> <text>pay an application fee determined by the Administration; and</text> </level> <level label="3"> <text>meet the standards and requirements for accreditation, inspection, and testing established by the Administration.</text> </level> </level> <level label="c"> <level label="1"> <text>An independent testing laboratory license is valid for 2 years on initial licensure.</text> </level> <level label="2"> <text>An independent testing laboratory license is valid for 2 years on renewal.</text> </level> </level> <level label="d"> <text>A registered independent testing laboratory is authorized to test and transport cannabis and cannabis products on behalf of cannabis licensees.</text> </level> <level label="e"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="f"> <text>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.</text> </level> <level label="g"> <text>The Administration shall adopt regulations that establish:</text> <level label="1"> <text>the standards and requirements to be met by an independent testing laboratory to obtain a registration;</text> </level> <level label="2"> <text>the standards of care to be followed by an independent testing laboratory; and</text> </level> <level label="3"> <text>the basis and processes for denial, revocation, and suspension of a registration of an independent testing laboratory.</text> </level> </level> <level label="h"> <text>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.</text> </level> <level label="i"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>The Administration shall convert all independent testing laboratory registrations in accordance with this subsection.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-409" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="4" subtitle_name="Cannabis Licensing"> <level label="a"> <text>The following businesses shall register with the Administration in order to provide services to a cannabis licensee:</text> <level label="1"> <text>a transporter;</text> </level> <level label="2"> <text>a security guard agency;</text> </level> <level label="3"> <text>a waste disposal company;</text> </level> <level label="4"> <text>a cannabis nursery; and</text> </level> <level label="5"> <text>any other type of cannabis business that is authorized by the Administration to provide plant or product–touching services to cannabis licensees.</text> </level> </level> <level label="b"> <text>The Administration shall adopt regulations that establish:</text> <level label="1"> <text>the standards and requirements to be met by an entity to obtain a registration under this subtitle; and</text> </level> <level label="2"> <text>the basis and processes for approval, denial, revocation, and suspension of the cannabis registration.</text> </level> </level> <level label="c"> <text>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.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-410" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="4" subtitle_name="Cannabis Licensing"> <level label="a"> <text>Beginning July 1, 2023, a cannabis licensee that is operating a dispensary shall:</text> <level label="1"> <text>ensure that it has adequate supply for qualifying patients and caregivers;</text> </level> <level label="2"> <text>set aside operating hours or dedicated service lines to serve only qualifying patients and caregivers; and</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="b"> <text>Except as provided in subsection (d) of this section, a licensed dispensary may not locate within:</text> <level label="1"> <text>500 feet of:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>a pre–existing playground, recreation center, library, public park, or place of worship; or</text> </level> </level> <level label="2"> <text>1,000 feet of another dispensary under this title.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <text>The distance requirements under subsection (b) of this section do not apply to a dispensary license that was:</text> <level label="1"> <text>converted under § 36–401(b)(1)(ii) of this subtitle; and</text> </level> <level label="2"> <text>properly zoned and operating before July 1, 2023.</text> </level> </level> <level label="e"> <text>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.</text> </level> <level label="f"> <text>A political subdivision may not adopt an ordinance:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>prohibiting outdoor cannabis cultivation on a premises that was properly zoned for outdoor cannabis cultivation on or before June 30, 2023.</text> </level> </level> <level label="g"> <text>A political subdivision may:</text> <level label="1"> <text>by ordinance, establish a distance limitation for dispensaries of up to 100 feet from an area zoned for residential use; or</text> </level> <level label="2"> <text>apply to dispensaries the distance limitation for licensed alcoholic beverage retailers from an area zoned for residential use.</text> </level> </level> <level label="h"> <text>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.</text> </level> <level label="i"> <text>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.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-411" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="4" subtitle_name="Cannabis Licensing"> <level label="a"> <level label="1"> <text>A protest against a license renewal may be filed with the Administration by at least 10 individuals who are:</text> <level label="i"> <text>residents, commercial tenants who are not holders of or applicants for a license, or real estate owners; and</text> </level> <level label="ii"> <text>located within 1,000 feet of the licensed premises.</text> </level> </level> <level label="2"> <text>A protest against a license renewal shall:</text> <level label="i"> <text>be on the basis of:</text> <level label="1"> <text>a violation of this title;</text> </level> <level label="2"> <text>a violation of civil or criminal law;</text> </level> <level label="3"> <text>conduct by a licensee that creates or maintains conditions that allow other individuals to act in a manner that disturbs the public peace, including:</text> </level> <level label="A"> <text>obstruction of public rights–of–way by unruly crowds;</text> </level> <level label="B"> <text>assault, battery, or other disorderly conduct that disturbs the public peace;</text> </level> <level label="C"> <text>vandalism; or</text> </level> <level label="D"> <text>littering; or</text> </level> <level label="4"> <text>any other violation established by the Administration by regulation; and</text> </level> </level> <level label="ii"> <text>be signed under oath.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>In hearing and making a determination on a protest filed against a license renewal, the Administration:</text> <level label="1"> <text>may consider only:</text> <level label="i"> <text>issues arising out of specific complaints about the operation of the licensed premises; and</text> </level> <level label="ii"> <text>the performance of the license holder for the 4–year period immediately preceding the date of the renewal application; and</text> </level> </level> <level label="2"> <text>may not consider zoning issues.</text> </level> </level> <level label="d"> <text>The Administration may adopt regulations to implement this section.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-501" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="5" subtitle_name="Agent, Owner, and License Transfer Requirements"> <level label="a"> <text>A cannabis agent must be registered with the Administration before the agent may volunteer or work for a cannabis licensee or cannabis registrant.</text> </level> <level label="b"> <text>A cannabis agent registration is valid for 2 years.</text> </level> <level label="c"> <level label="1"> <text>Except as provided in paragraph (2) of this subsection, to register as a cannabis agent with the Administration, an individual must:</text> <level label="i"> <text>be at least 21 years old; and</text> </level> <level label="ii"> <text>if the records are legally accessible, obtain a State and national criminal history records check in accordance with § 36–505 of this subtitle.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <level label="1"> <text>The Administration may not register as a cannabis agent an individual who does not meet the criteria established under subsection (c) of this section.</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="e"> <text>The Administration may not deny a cannabis agent registration based on any cannabis–related offenses occurring before July 1, 2023.</text> </level> <level label="f"> <text>A cannabis licensee shall require each registered cannabis agent to complete a cannabis agent training program authorized under this title:</text> <level label="1"> <text>within 90 days of the cannabis agent’s start date as an employee of or volunteer for the cannabis licensee; and</text> </level> <level label="2"> <text>at least once every 2 years.</text> </level> </level> <level label="g"> <text>A registration of a cannabis agent issued by the Natalie M. LaPrade Medical Cannabis Commission on or before July 1, 2023, shall:</text> <level label="1"> <text>be valid under this title; and</text> </level> <level label="2"> <text>authorize the cannabis agent to be employed by or volunteer with a licensed cannabis business.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-502" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="5" subtitle_name="Agent, Owner, and License Transfer Requirements"> <level label="a"> <text>A person wishing to hold an ownership interest of 5% or greater in, or control of, a cannabis licensee shall submit to the Administration:</text> <level label="1"> <text>an application that includes the name, address, and date of birth of the applicant;</text> </level> <level label="2"> <text>a statement signed by the applicant asserting that the applicant has not previously had a cannabis license or cannabis registration suspended or revoked;</text> </level> <level label="3"> <text>a State and national criminal history records check in accordance with § 36–505 of this subtitle;</text> </level> <level label="4"> <text>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</text> </level> <level label="5"> <text>an application fee in an amount to be determined by the Administration in accordance with this subtitle.</text> </level> </level> <level label="b"> <text>The Administration may deny an application if:</text> <level label="1"> <text>the applicant:</text> <level label="i"> <text>fails to submit the information required under subsection (a) of this section; or</text> </level> <level label="ii"> <text>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</text> </level> </level> <level label="2"> <text>the Administration finds a substantial reason to deny the registration.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-503" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="5" subtitle_name="Agent, Owner, and License Transfer Requirements"> <level label="a"> <text>A cannabis license granted under this title is not transferable except as provided in this section.</text> </level> <level label="b"> <text>To transfer ownership or control of a license issued under this title, a licensee:</text> <level label="1"> <text>shall submit to the Administration:</text> <level label="i"> <text>an application fee in an amount to be determined by the Administration in accordance with this subtitle; and</text> </level> <level label="ii"> <text>an application developed by the Administration; and</text> </level> </level> <level label="2"> <text>must meet the requirements for transfer of ownership or control established by the Administration under this title.</text> </level> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>The limitations under this subsection do not apply to:</text> <level label="i"> <text>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</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="4"> <text>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.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-504" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="5" subtitle_name="Agent, Owner, and License Transfer Requirements"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>“Owner” does not include a stockholder.</text> </level> </level> <level label="b"> <text>The provisions in this section are in addition to the conflict of interest provisions in Title 5 of the General Provisions Article.</text> </level> <level label="c"> <text>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:</text> <level label="1"> <text>be an owner or an employee of a business entity that holds a license or registration under this title; or</text> </level> <level label="2"> <text>have an official relationship with a business entity that holds a license or registration under this title.</text> </level> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <text>A member of the General Assembly may not:</text> <level label="1"> <text>be an owner or an employee of a business entity that holds a license or registration under this title; or</text> </level> <level label="2"> <text>have an official relationship with a business entity that holds a license or registration under this title.</text> </level> </level> <level label="f"> <text>A former member of the General Assembly, for the 1–year period immediately after the member leaves office, may not:</text> <level label="1"> <text>be an owner or an employee of a business entity that holds a license or registration under this title; or</text> </level> <level label="2"> <text>have an official relationship with a business entity that holds a license or registration under this title.</text> </level> </level> <level label="g"> <text>An employee of the Administration may not:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>have an official relationship with a person who holds a license or registration under this title;</text> </level> <level label="3"> <text>be an elected official of State or local government;</text> </level> <level label="4"> <text>receive or share in, directly or indirectly, the receipts or proceeds of a cannabis licensee; or</text> </level> <level label="5"> <text>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.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-505" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="5" subtitle_name="Agent, Owner, and License Transfer Requirements"> <level label="a"> <text>In this section, “Central Repository” means the Criminal Justice Information System Central Repository in the Department of Public Safety and Correctional Services.</text> </level> <level label="b"> <text>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:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>the fee authorized under § 10–221(b)(7) of the Criminal Procedure Article for access to State criminal history records; and</text> </level> <level label="3"> <text>the processing fee required by the Federal Bureau of Investigation for a national criminal history records check.</text> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <text>Information obtained from the Central Repository under this section shall be:</text> <level label="1"> <text>confidential and may not be redisseminated; and</text> </level> <level label="2"> <text>used only for the purpose of registration under this title.</text> </level> </level> <level label="f"> <level label="1"> <text>The Administration may issue a temporary cannabis agent registration if:</text> <level label="i"> <text>a pre–employment background check completed by a third–party vendor is submitted to and approved by the Administration; and</text> </level> <level label="ii"> <text>the applicant has submitted an application to the Central Repository, as required in subsection (b) of this section.</text> </level> </level> <level label="2"> <text>The period of a temporary cannabis agent registration issued under paragraph (1) of this subsection may not exceed 90 calendar days.</text> </level> </level> <level label="g"> <text>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.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-601" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="6" subtitle_name="Medical Cannabis Compassionate Use Fund and Program"> <level label="a"> <text>In this section, “Fund” means the Medical Cannabis Compassionate Use Fund.</text> </level> <level label="b"> <text>There is a Medical Cannabis Compassionate Use Fund.</text> </level> <level label="c"> <level label="1"> <text>The Administration shall:</text> <level label="i"> <text>administer the Fund; and</text> </level> <level label="ii"> <text>subject to paragraph (2) of this subsection, establish fees in an amount necessary to provide revenues for the purposes of the Fund.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="d"> <text>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:</text> <level label="1"> <text>an assessment of the patient’s medical history and current medical condition; and</text> </level> <level label="2"> <text>medical cannabis from a licensed dispensary.</text> </level> </level> <level label="e"> <level label="1"> <text>The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.</text> </level> <level label="2"> <text>The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.</text> </level> </level> <level label="f"> <text>The Fund consists of:</text> <level label="1"> <text>fees established under subsection (c)(1)(ii) of this section;</text> </level> <level label="2"> <text>fines assessed by the Administration under this title;</text> </level> <level label="3"> <text>money appropriated in the State budget to the Fund;</text> </level> <level label="4"> <text>interest earnings; and</text> </level> <level label="5"> <text>any other money from any other source accepted for the benefit of the Fund.</text> </level> </level> <level label="g"> <level label="1"> <text>The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.</text> </level> <level label="2"> <text>Any interest earnings of the Fund shall be credited to the Fund.</text> </level> </level> <level label="h"> <text>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.</text> </level> <level label="i"> <text>The Comptroller shall pay out money from the Fund as directed by the Administration.</text> </level> <level label="j"> <text>No part of the Fund may revert or be credited to:</text> <level label="1"> <text>the General Fund of the State; or</text> </level> <level label="2"> <text>any other special fund of the State.</text> </level> </level> <level label="k"> <text>Expenditures from the Fund may be made only in accordance with the State budget.</text> </level> <level label="l"> <text>The Administration shall adopt regulations to carry out this section.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-701" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="7" subtitle_name="Cannabis Research and Development"> <level label="a"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>A registration filed under paragraph (1) of this subsection shall include:</text> <level label="i"> <text>the name of the primary researcher;</text> </level> <level label="ii"> <text>the expected duration of the research project; and</text> </level> <level label="iii"> <text>the primary objectives of the research project.</text> </level> </level> <level label="3"> <text>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.</text> </level> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>The Administration may adopt regulations to implement this section.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-702" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="7" subtitle_name="Cannabis Research and Development"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>A registration issued under subsection (a) of this section authorizes the registrant only to:</text> <level label="1"> <text>test chemical potency and composition levels;</text> </level> <level label="2"> <text>conduct clinical investigations of cannabis–derived medicinal products;</text> </level> <level label="3"> <text>conduct research on the efficacy and safety of administering cannabis as part of medical treatment;</text> </level> <level label="4"> <text>conduct genomic, horticultural, or agricultural research; and</text> </level> <level label="5"> <text>conduct research on cannabis–affiliated products or systems.</text> </level> </level> <level label="c"> <text>To obtain a research and development registration, an applicant shall submit to the Administration:</text> <level label="1"> <text>an application fee in an amount to be determined by the</text> <text>Administration; and </text> </level> <level label="2"> <text>an application developed by the Administration.</text> </level> </level> <level label="d"> <text>An applicant for a research and development registration must meet the registration standards and requirements established by the Administration.</text> </level> <level label="e"> <level label="1"> <text>A research and development registration is valid for an initial term of 2 years.</text> </level> <level label="2"> <text>A research and development registration is valid for 2 years on renewal.</text> </level> </level> <level label="f"> <text>A research and development registrant may transfer, by sale or donation, cannabis grown within its operation only to other research and development registrants.</text> </level> <level label="g"> <text>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.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-801" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="8" subtitle_name="Reports"> <level label="a"> <text>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:</text> <level label="1"> <text>the number of minority and women owners of the cannabis licensee or cannabis registrant;</text> </level> <level label="2"> <text>the ownership interest of any minority and women owners of the cannabis licensee or cannabis registrant;</text> </level> <level label="3"> <text>the number of minority and women employees of the cannabis licensee or cannabis registrant;</text> </level> <level label="4"> <text>a list of the cannabis licensee’s or cannabis registrant’s expenditures for the prior State fiscal year; and</text> </level> <level label="5"> <text>for each expenditure:</text> <level label="i"> <text>a description of the work performed;</text> </level> <level label="ii"> <text>the dollar value of the expenditure;</text> </level> <level label="iii"> <text>whether the work was performed by the cannabis licensee or cannabis registrant or a contractor or subcontractor; and</text> </level> <level label="iv"> <text>if the work was performed by a contractor or subcontractor, the name of the entity that performed the work.</text> </level> </level> </level> <level label="b"> <text>All data provided by a cannabis licensee or cannabis registrant under subsection (a)(4) and (5) of this section:</text> <level label="1"> <text>shall constitute confidential commercial and financial information and be treated as confidential by the Administration and the State; and</text> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>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.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-802" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="8" subtitle_name="Reports"> <text>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:</text> <level label="1"> <text>the amount of cannabis cultivated, processed, and dispensed by standard and micro licenses; and</text> </level> <level label="2"> <text>whether the supply of cannabis is adequate to meet the demand for cannabis and cannabis products.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-803" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="8" subtitle_name="Reports"> <text>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:</text> <level label="1"> <text>the number of patients, caregivers, and providers certified under this title;</text> </level> <level label="2"> <text>the wholesale and retail sales of medical and adult–use cannabis, measured by revenue and volume; and</text> </level> <level label="3"> <text>the median consumer price for cannabis and cannabis products.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-901" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="9" subtitle_name="Advertising"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>“Advertisement” does not include packaging or labeling.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-902" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="9" subtitle_name="Advertising"> <text>An advertisement for cannabis and cannabis products or cannabis–related services that makes therapeutic or medical claims shall: </text> <level label="1"> <text>be supported by competent and reliable scientific evidence; and</text> </level> <level label="2"> <text>include information on the most serious and most common side effects or risks associated with the use of cannabis.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-903" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="9" subtitle_name="Advertising"> <level label="a"> <level label="1"> <text>An advertisement for a cannabis licensee, cannabis product, or cannabis–related service may not:</text> <level label="i"> <text>violate Title 13, Subtitle 3 of the Commercial Law Article;</text> </level> <level label="ii"> <text>directly target individuals under the age of 21 years;</text> </level> <level label="iii"> <text>contain a design, an illustration, a picture, or a representation that:</text> <level label="1"> <text>targets or is attractive to individuals under the age of 21 years, including a cartoon character, a mascot, or any other depiction that is commonly used to market products to individuals under the age of 21 years;</text> </level> <level label="2"> <text>displays the use of cannabis, including the consumption, smoking, or vaping of cannabis;</text> </level> <level label="3"> <text>encourages or promotes cannabis for use as an intoxicant; or</text> </level> <level label="4"> <text>is obscene;</text> </level> </level> <level label="iv"> <text>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 in accordance with paragraph (3) of this subsection; or</text> </level> <level label="v"> <text>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.</text> </level> </level> <level label="2"> <level label="i"> <text>This paragraph does not apply to:</text> <level label="1"> <text>exterior signage used for operational purposes;</text> </level> <level label="2"> <text>signs that were painted on the permanent structure of a cannabis business prior to January 1, 2026; or</text> </level> <level label="3"> <text>interior displays that are visible through the windows or doors of a licensed premises but are not affixed to a permanent structure.</text> </level> </level> <level label="ii"> <text>A cannabis business may place exterior signage on the premises of the business for the limited purpose of identifying the business to the public.</text> </level> <level label="iii"> <text>Subject to subparagraph (iv) of this paragraph, the holder of a standard dispensary license may place exterior signage, including a poster or a placard that is attached to the building, or a freestanding signboard that is immediately adjacent to the entrance of the licensed premises, for the limited purpose of:</text> <level label="1"> <text>providing contact information for the dispensary, including a website address, phone number, e–mail address, or Quick Response (QR) code;</text> </level> <level label="2"> <text>providing contact information for the Administration;</text> </level> <level label="3"> <text>providing information on what to do if an adverse event occurs, including:</text> </level> <level label="A"> <text>an advisory to call 9–1–1 in an emergency;</text> </level> <level label="B"> <text>contact information for the Maryland Poison Center; and</text> </level> <level label="C"> <text>contact information for the Pet Poison Helpline; and</text> </level> <level label="4"> <text>identifying an ownership or licensure designation, as approved by the Administration.</text> </level> </level> <level label="iv"> <text>Exterior signage under subparagraph (iii) of this paragraph may not exceed:</text> <level label="1"> <text>900 square inches for any individual exterior sign; or</text> </level> <level label="2"> <text>1,200 square inches total for all exterior signage.</text> </level> </level> </level> <level label="3"> <text>To determine whether an advertisement or a proposed advertisement meets the audience composition requirements under paragraph (1)(iv) of this subsection, the Administration shall:</text> <level label="i"> <text>accept the most recent and readily available audience composition data from the television, radio, Internet, mobile application, social media, or other electronic communication, or print publication entity with which the cannabis licensee advertises or proposes to advertise; and</text> </level> <level label="ii"> <text>on or before January 1, 2027, adopt regulations that develop a process to accept an attestation regarding audience composition from an organizer or host of an event that a cannabis business proposes to advertise at through an event sponsorship.</text> </level> </level> </level> <level label="b"> <level label="1"> <level label="i"> <text>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.</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> <level label="4"> <level label="i"> <text>Except as provided in subparagraph (ii) of this paragraph, 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.</text> </level> <level label="ii"> <text>The trademark, brand, name, location, or other distinguishing characteristic of a cannabis business may be used in a news article, interview, documentary, or other editorial content if the cannabis business or a third party acting on behalf of a cannabis business does not provide compensation or anything else of value to the publisher of the news article, interview, documentary, or other editorial content.</text> </level> </level> </level> <level label="c"> <text>The Administration shall adopt regulations to establish procedures for the enforcement of this section.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1001" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="10" subtitle_name="Responsible Vendor Training Program"> <level label="a"> <text>To offer a responsible medical or adult–use cannabis agent training program, a person shall submit an application to the Administration.</text> </level> <level label="b"> <text>The Administration shall approve the application if the proposed training program meets the minimum educational standards established under subsection (c) of this section.</text> </level> <level label="c"> <text>At a minimum, a training program must:</text> <level label="1"> <text>be taught in a classroom or virtual setting for at least a 2–hour period;</text> </level> <level label="2"> <text>establish program standards, including certification and recertification requirements, record keeping, testing and assessment protocols, and effectiveness evaluations; and</text> </level> <level label="3"> <text>provide a core curriculum of relevant statutory and regulatory provisions as required by regulations adopted by the Administration, which shall include:</text> <level label="i"> <text>administrative and criminal liability and license and court sanctions;</text> </level> <level label="ii"> <text>statutory and regulatory requirements for employees and owners;</text> </level> <level label="iii"> <text>State and local licensing and enforcement; and</text> </level> <level label="iv"> <text>public health and safety standards relevant to each license type.</text> </level> </level> </level> <level label="d"> <text>In reviewing applications for approval of proposed cannabis agent training programs, the Administration shall give priority to applications for programs that were previously approved as responsible vendor training programs.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1002" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="10" subtitle_name="Responsible Vendor Training Program"> <text>The Administration shall adopt regulations establishing the cannabis agent training program and the minimum standards for the program.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1003" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="10" subtitle_name="Responsible Vendor Training Program"> <text>A provider of an approved training program shall:</text> <level label="1"> <text>maintain its training records at its principal place of business for at least 4 years; and</text> </level> <level label="2"> <text>make the records available for inspection by the Administration.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1101" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="11" subtitle_name="Prohibited Acts"> <level label="a"> <text>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:</text> <level label="1"> <text>for adult–use cannabis, the consumer is at least 21 years old; or</text> </level> <level label="2"> <text>for medical cannabis, the patient or caregiver is:</text> <level label="i"> <text>registered with the Administration; and</text> </level> <level label="ii"> <text>at least 18 years old.</text> </level> </level> </level> <level label="b"> <level label="1"> <level label="i"> <text>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:</text> <level label="1"> <text>$500 for a first violation;</text> </level> <level label="2"> <text>$1,000 for a second violation occurring within 24 months after the first violation; and</text> </level> <level label="3"> <text>$5,000 for each subsequent violation occurring within 24 months after the immediately preceding violation.</text> </level> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="2"> <text>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.</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="c"> <level label="1"> <text>A cannabis licensee may not:</text> <level label="i"> <text>sell, transfer, or deliver cannabis to an individual who is visibly intoxicated;</text> </level> <level label="ii"> <text>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</text> </level> <level label="iii"> <text>conduct direct–to–consumer Internet sales of adult–use cannabis on or before July 1, 2025.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1102" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="11" subtitle_name="Prohibited Acts"> <level label="a"> <level label="1"> <text>In this section the following words have the meanings indicated.</text> </level> <level label="2"> <text>“Hemp” has the meaning stated in § 14–401 of the Agriculture Article.</text> </level> <level label="3"> <text>“Tetrahydrocannabinol” means:</text> <level label="i"> <text>any tetrahydrocannabinol, including delta–8–tetrahydrocannabinol, delta–9–tetrahydrocannabinol, and delta–10–tetrahydrocannabinol, regardless of how derived;</text> </level> <level label="ii"> <text>any other cannabinoid, except cannabidiol that the Administration determines to cause intoxication; and</text> </level> <level label="iii"> <text>any other chemically similar compound, substance, derivative, or isomer of tetrahydrocannabinol, as identified by the Administration.</text> </level> </level> <level label="4"> <text>“Tincture” means a solution that is:</text> <level label="i"> <text>dissolved in alcohol, glycerin, or vegetable oil; and</text> </level> <level label="ii"> <text>distributed in a dropper bottle of 4 ounces or less.</text> </level> </level> </level> <level label="b"> <level label="1"> <text>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:</text> <level label="i"> <text>manufacturing standards established under § 36–203 of this title;</text> </level> <level label="ii"> <text>laboratory testing standards established under § 36–203 of this title; and</text> </level> <level label="iii"> <text>packaging and labeling standards established under § 36–203 of this title.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="c"> <text>A person may not sell or distribute a cannabinoid product that is not derived from naturally occurring biologically active chemical constituents.</text> </level> <level label="d"> <level label="1"> <text>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:</text> <level label="i"> <text>a ratio of cannabidiol to tetrahydrocannabinol of at least 15 to 1; and</text> </level> <level label="ii"> <level label="2"> <text>5 milligrams or less of tetrahydrocannabinol per serving and 100 milligrams or less of tetrahydrocannabinol per package.</text> </level> </level> </level> <level label="2"> <text>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.</text> </level> </level> <level label="e"> <text>A person who violates subsection (b) of this section:</text> <level label="1"> <text>may be charged by a citation; and</text> </level> <level label="2"> <text>is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000.</text> </level> </level> <level label="f"> <text>A person who violates subsection (c) of this section:</text> <level label="1"> <text>may be charged by a citation; and</text> </level> <level label="2"> <text>is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $10,000.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1103" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="11" subtitle_name="Prohibited Acts"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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:</text> <level label="1"> <text>nominal or without the benefits and risks of genuine ownership or control; and</text> </level> <level label="2"> <text>for the limited purpose of satisfying the requirements under this title for cannabis licensees or registrants, including requirements for social equity licensees or registrants.</text> </level> </level> <level label="c"> <text>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.</text> </level> <level label="d"> <text>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:</text> <level label="1"> <text>determined by the Administration to be in violation of subsection (b) of this section; or</text> </level> <level label="2"> <text>convicted of violating subsection (b) of this section.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1104" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="11" subtitle_name="Prohibited Acts"> <level label="a"> <text>In this section, “tetrahydrocannabinol” has the meaning stated in § 36–1102 of this subtitle.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <level label="1"> <text>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.</text> </level> <level label="2"> <text>Advertising under paragraph (1) of this subsection includes packaging, labeling, or electronic communication.</text> </level> </level> <level label="d"> <text>The Executive Director may seize, destroy, or confiscate a product that is:</text> <level label="1"> <text>offered or displayed for sale to a consumer in a location that is not appropriately licensed under Subtitle 4 of this title; and</text> </level> <level label="2"> <text>the subject of a violation under subsection (b) or (c) of this section.</text> </level> </level> <level label="e"> <level label="1"> <text>If a person who is not a cannabis licensee violates subsection (b) or (c) of this section, the person:</text> <level label="i"> <text>may be charged by a citation; and</text> </level> <level label="ii"> <text>is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $5,000.</text> </level> </level> <level label="2"> <text>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.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1201" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="12" subtitle_name="Legal Protections"> <text>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: </text> <level label="1"> <text>a qualifying patient;</text> </level> <level label="2"> <text>a cannabis licensee or cannabis registrant that is licensed or registered under this title;</text> </level> <level label="3"> <text>a certifying provider;</text> </level> <level label="4"> <text>a caregiver;</text> </level> <level label="5"> <text>an academic research representative purchasing medical cannabis under Subtitle 7 of this title;</text> </level> <level label="6"> <text>a hospital, medical facility, or hospice program where a qualifying patient is receiving treatment; or</text> </level> <level label="7"> <text>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.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1401" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="14" subtitle_name="Capital Access Program"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Borrower” means a business that:</text> <level label="1"> <text>qualifies as a small business under the U.S. Small Business Administration size standards;</text> </level> <level label="2"> <text>applies to a lender for business financing; and</text> </level> <level label="3"> <text>has fewer than 50 employees.</text> </level> </level> <level label="c"> <text>“Department” means the Department of Commerce.</text> </level> <level label="d"> <text>“Lender” means:</text> <level label="1"> <text>a credit union, as defined in § 1–101 of the Financial Institutions Article;</text> </level> <level label="2"> <text>a financial institution, as defined in § 1–101 of the Financial Institutions Article; or</text> </level> <level label="3"> <text>a community development financial institution, as defined in 12 U.S.C. § 4702(5).</text> </level> </level> <level label="e"> <text>“Program” means the Capital Access Program established under this subtitle.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1402" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="14" subtitle_name="Capital Access Program"> <text>There is a Capital Access Program in the Department of Commerce.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1403" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="14" subtitle_name="Capital Access Program"> <text>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.</text> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1404" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="14" subtitle_name="Capital Access Program"> <level label="a"> <text>A loan to a social equity licensee qualifies under the Program if the loan:</text> <level label="1"> <text>satisfies the lending criteria of the lender; and</text> </level> <level label="2"> <text>does not exceed:</text> <level label="i"> <text>for a dispensary, $500,000; or</text> </level> <level label="ii"> <text>for a grower or processor, $1,000,000.</text> </level> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1405" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="14" subtitle_name="Capital Access Program"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>A lender may enroll all or a portion of a qualifying loan in an amount of not more than:</text> <level label="1"> <text>for a dispensary, $500,000; or</text> </level> <level label="2"> <text>for a grower or processor, $1,000,000.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1406" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="14" subtitle_name="Capital Access Program"> <level label="a"> <text>The Department shall establish a loan loss reserve account for a lender when the lender enrolls its first loan under the Program.</text> </level> <level label="b"> <text>At the time of enrollment:</text> <level label="1"> <text>the borrower shall make a payment to the account of between 0% and 7% of the enrolled loan amount;</text> </level> <level label="2"> <text>the lender shall make a payment to the account of at least 2% of the enrolled amount; and</text> </level> <level label="3"> <text>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.</text> </level> </level> <level label="c"> <text>The loan loss reserve account of a lender shall be available for the lender to withdraw if a borrower defaults on a qualifying loan.</text> </level> <level label="d"> <text>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.</text> </level> <level label="e"> <text>The Department shall establish procedures for a lender to withdraw from the Program.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1501" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="15" subtitle_name="Banking and Insurance"> <level label="a"> <text>In this subtitle the following words have the meanings indicated.</text> </level> <level label="b"> <text>“Cannabis business” means a manufacturer, producer, or another person that:</text> <level label="1"> <text>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</text> </level> <level label="2"> <text>engages in an activity described in item (1) of this subsection in accordance with State law.</text> </level> </level> <level label="c"> <text>“Depository institution” means a State–chartered or federally chartered financial institution, other–state bank, or foreign branch that:</text> <level label="1"> <text>is located in the State or maintains branches in the State; and</text> </level> <level label="2"> <text>is authorized to maintain accounts.</text> </level> </level> <level label="d"> <level label="1"> <text>“Service provider” means a business, an organization, or any other person that:</text> <level label="i"> <text>sells goods or services to a cannabis business; or</text> </level> <level label="ii"> <text>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.</text> </level> </level> <level label="2"> <text>“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.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1502" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="15" subtitle_name="Banking and Insurance"> <text>The provisions in this subtitle apply to:</text> <level label="1"> <text>all banks, credit unions, and other entities operating as depository institutions in the State; and</text> </level> <level label="2"> <text>insurance companies and insurance producers operating in the State.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1503" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="15" subtitle_name="Banking and Insurance"> <level label="a"> <text>The Commissioner of Financial Regulation may not:</text> <level label="1"> <text>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;</text> </level> <level label="2"> <text>prohibit, penalize, or otherwise discourage a depository institution from providing financial services to a cannabis business in the State;</text> </level> <level label="3"> <text>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:</text> <level label="i"> <text>the account holder is a cannabis business or service provider, or is an employee, owner, or operator of a cannabis business or service provider;</text> </level> <level label="ii"> <text>the account holder later becomes an employee, owner, or operator of a cannabis business or service provider; or</text> </level> <level label="iii"> <text>the depository institution was not aware that the account holder is an employee, owner, or operator of a cannabis business or service provider;</text> </level> </level> <level label="4"> <text>take any adverse or corrective supervisory action on a loan made to:</text> <level label="i"> <text>a cannabis business or service provider solely because the business is a cannabis business or service provider;</text> </level> <level label="ii"> <text>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</text> </level> <level label="iii"> <text>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</text> </level> </level> <level label="5"> <text>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.</text> </level> </level> <level label="b"> <text>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.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1504" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="15" subtitle_name="Banking and Insurance"> <text>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:</text> <level label="1"> <text>the transaction involves proceeds from a cannabis business or service provider; or</text> </level> <level label="2"> <text>the transaction involves proceeds from:</text> <level label="i"> <text>cannabis activities conducted by a cannabis business; or</text> </level> <level label="ii"> <text>activities conducted by a service provider.</text> </level> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1505" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="15" subtitle_name="Banking and Insurance"> <level label="a"> <text>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:</text> <level label="1"> <text>solely for providing the financial service; or</text> </level> <level label="2"> <text>for further investing any income derived from the financial service.</text> </level> </level> <level label="b"> <text>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:</text> <level label="1"> <text>solely for engaging in the business of insurance; or</text> </level> <level label="2"> <text>for further investing any income derived from the business of insurance.</text> </level> </level> <level label="c"> <text>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.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1506" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="15" subtitle_name="Banking and Insurance"> <level label="a"> <text>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.</text> </level> <level label="b"> <text>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.</text> </level> <level label="c"> <text>This subtitle may not be construed to interfere with the regulation of the business of insurance.</text> </level> </section> <section article="gab" article_name="Alcoholic Beverages and Cannabis" number="36-1507" title_number="36" title_name="Medical and Adult-Use Cannabis" subtitle_number="15" subtitle_name="Banking and Insurance"> <text>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.</text> </section>