There is a Maryland Cannabis Administration established as an independent unit of State government. There is a Director of the Administration. The Governor shall appoint the Director of the Administration with the advice and consent of the Senate. The Director serves at the pleasure of the Governor. 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. The Administration may employ staff and retain contractors as provided in the State budget. The Administration: shall be responsible for carrying out the requirements and duties established under this title; and may recommend changes to improve the administration of this title relating to the regulation of cannabis. The Administration shall administer and enforce this title.

The Administration shall: 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; 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; 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; solicit, evaluate, and issue or deny applications for cannabis licenses and cannabis registrations, including: licenses to operate a cannabis business in accordance with this title; and registration for independent testing laboratories, transporters, security guard companies, waste disposal companies, and cannabis nurseries; award or deny: a license to operate a cannabis business in accordance with this title; and 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; conduct announced and unannounced inspections of any business licensed or registered under this title to ensure compliance with this title; 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; give notice and hold a hearing in accordance with Title 10, Subtitle 2 of the State Government Article, for any: contested cannabis license or registration denial; or violation of this title or any regulation adopted under this title; administer oaths in a proceeding under this section; and 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; adopt regulations necessary to carry out its duties under this title; and perform any other power authorized or duty required under this title or any other provision of State law. The Administration may: issue a subpoena for the attendance of a witness to testify or the production of evidence in connection with: any disciplinary action under this title; or any investigation or proceeding initiated for an alleged violation of this title; delegate the hearing authority authorized under subsection (a)(8) of this section to an employee within the Administration; 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 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: this title or a regulation adopted under this title; or any other State law or regulation related to cannabis or the operations of a cannabis business or registrant.

The Administration shall: evaluate the regulations adopted by the Natalie M. LaPrade Medical Cannabis Commission in Title 10, Subtitle 62 of the Code of Maryland Regulations; and on or before July 1, 2023, adopt emergency regulations to: carry out the licensure requirements specified under this title; implement procedures related to cannabis applications, licenses, and registrations in accordance with this title; 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; 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 establish operating requirements for cannabis licensees or cannabis registrants, including requirements for: security, including lighting, physical security, video, and alarm requirements; safe and secure delivery, transport, and storage of cannabis; preventing the sale or diversion of cannabis and cannabis products to persons under the age of 21 years; and health and safety standards governing the cultivation, manufacture, testing, and dispensing of cannabis or cannabis products. The emergency regulations that the Administration is required to adopt under subsection (a) of this section shall: be supplemental to the medical cannabis regulations under Title 10, Subtitle 62 of the Code of Maryland Regulations; and notwithstanding any other law, remain in effect until the taking effect of nonemergency regulations adopted under subsection (c) of this section. On or before July 1, 2024, the Administration shall adopt nonemergency regulations to carry out this title. To the extent practicable, the Administration shall adopt regulations requiring cannabis licensees to transition from a cash system and to use traditional banking services. The Administration shall adopt regulations: governing Internet sales of cannabis; implementing and supplementing packaging and labeling requirements for cannabis products under § 36–203.1 of this subtitle; 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 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. The regulations adopted by the Administration under this section shall, to the extent practicable, regulate medical and adult–use cannabis in the same manner.

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. A package of cannabis for distribution to a consumer or qualifying patient shall: conform to: child–resistant packaging requirements established under 16 C.F.R. § 1700.15(b)(1); and tamper–evident packaging; provide that packaging and labeling shall include: a finished product lot number and expiration date if applicable; a statement: that consumption of cannabis may impair your ability to drive a car or operate machinery, use extreme caution; of potential risks associated with cannabis use, especially during pregnancy or breast feeding; and that this package contains cannabis, keep out of the reach of children and animals; the name, address, and phone number of the dispensary that sold the product to report an adverse event; any allergen warning required by law; a listing of noncannabis ingredients; and an itemization, including weight: of all cannabinoid and terpene ingredients specified for the product; and concentrations of any cannabinoid of less than 1% printed with a leading zero before the decimal point. Cannabis labeling and packaging may not include: subject to subsection (d) of this section, any image that may appeal to children including: images of food, candy, baked goods, cereal, fruit, and beverages; and a resemblance to the trademarked characteristic product–specialized packaging of any commercially available candy, snack, baked good, cereal, or beverage; 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; 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 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. 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.

Subject to paragraph (2) of this subsection, the Administration shall establish and maintain a State cannabis testing laboratory. 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. 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. The State cannabis testing laboratory is responsible for: developing and maintaining a cannabis laboratory reference library that contains cannabis testing methodologies in the areas of: potency; homogeneity; detection and quantitation of contaminants; and solvents; establishing standard operating procedures for sample collection, preparation, and analysis of cannabis by independent testing laboratories; conducting proficiency testing of independent testing laboratories; remediating problems with independent testing laboratories; conducting compliance testing on cannabis samples analyzed by independent testing laboratories; and 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. Independent testing laboratories licensed under § 36–408 of this title shall provide materials for the cannabis laboratory reference library. The State cannabis testing laboratory shall hold medical and adult–use cannabis testing to the same standards.

The Administration may impose registration and other fees to defray the costs of: the operations of the Administration and the Commission; and administering and enforcing this title. 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.

In this section, “Fund” means the Cannabis Regulation and Enforcement Fund. There is a Cannabis Regulation and Enforcement Fund. The purpose of the Fund is to provide funds to cover the costs of: the operation of the Administration; administering and enforcing this title; and supporting the Social Equity Partnership Grant Program established under § 1–323 of this article. The Administration shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: fees distributed to the Fund under § 36–205 of this subtitle; revenue distributed to the Fund under § 2–1302.2 of the Tax – General Article; interest earnings of the Fund; and 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. 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. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. The Fund is subject to audit by the Office of Legislative Audits as provided for in § 2–1220 of the State Government Article. 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. The report shall also be submitted to the General Assembly in accordance with § 2–1257 of the State Government Article.