A person must obtain a cannabis license issued by the Administration to operate a cannabis business. A cannabis license issued under this subtitle: authorizes the holder of the license to operate a medical and adult–use cannabis business; is valid for 5 years on initial licensure and 5 years on renewal; and may be transferred only in accordance with Subtitle 5 of this title. The Administration shall: issue standard licenses, micro licenses, incubator space licenses, and on–site consumption licenses in accordance with this title; 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: a conversion fee is paid in accordance with § 36–403 of this subtitle; and the business complies with the ownership restrictions under subsection (e) of this section; set production, processing, sales, and other limitations and requirements for all license types; 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 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. The Administration may: inspect a cannabis licensee to ensure compliance with this title and the regulations adopted under this title; 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; 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 conditionally award cannabis licenses. A standard license authorizes the holder of the license: 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; for processors, to process more than 2,000 pounds of cannabis per year, as calculated by the Administration; and for dispensaries, to operate a store at a physical location that sells cannabis or cannabis products. A micro license authorizes the holder of the license: for growers, to operate not more than 10,000 square feet of indoor canopy or its equivalent, as calculated by the Administration; for processors, to process not more than 2,000 pounds of cannabis per year, as calculated by the Administration; and 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. 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. 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. 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: for standard licenses: 75 grower licenses; 100 processor licenses; and 300 dispensary licenses; for micro licenses: 100 grower licenses; 100 processor licenses; and 10 dispensary licenses; for incubator space licenses, 10 licenses; and for on–site consumption licenses, 50 licenses. This subsection applies to all licenses, including licenses converted under subsection (b)(1)(ii) of this section. 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: for standard licenses and micro licenses: one grower licensee; one processor licensee; and not more than four dispensary licensees; for incubator space licenses, not more than two licensees; and for on–site consumption licenses, not more than two licensees. 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. 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. 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. The holder of a cannabis license may not surrender the license and apply for a new license in the same or a similar category. The limitation under paragraph (1) of this subsection applies to: affiliates, holding companies, parent companies, or other related entities; individuals and firms with identical or substantially identical business or economic interests; persons with common investments; and firms that are economically dependent on each other through contractual or other relationships. 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. A license issued under this title: is not property and does not confer property rights; and is subject to: suspension, revocation, and restrictions authorized by law; and regulations authorized under this article. 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: may not: operate under the license; or renew the license; but may continue to hold the license for resale to another person for conversion under this subtitle. 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.

It is the intent of the General Assembly to preserve production availability for new adult–use cannabis cultivation licenses issued under this subtitle. 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: if the licensee is a grower, adhere to the expansion limitations specified under paragraph (2) of this subsection; and pay the conversion fee required under § 36–403 of this subtitle. 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: if the canopy is under 25,000 square feet, to 25,000 square feet or by 20%, whichever is greater; if the canopy is at or above 25,000 square feet, by 20%; or if the cannabis licensee has a square footage expansion that was preapproved before December 31, 2022, the preapproved expansion or 20%, whichever is greater. 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. An operational business described under subparagraph (i) of this paragraph may begin to expand its canopy of operations: 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 for the remaining total square footage authorized under subparagraph (i) or (ii) of this paragraph on or after May 1, 2024. 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: held a Stage One Preapproval for a license before October 1, 2022; and was not operational before October 1, 2022. 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. This paragraph applies to all licensed growers. A licensed grower shall accurately calculate and report annually to the Administration its flowering cannabis plant canopy area. The canopy�area is measured in accordance with the definition of “canopy” established under § 36–101 of this title. For the purpose of measuring canopy, 1 square foot of indoor canopy is equal to 4 square feet of outdoor canopy. The maximum amount of space for cannabis production may not exceed the canopy authorized under this section. 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: reduce the canopy of the licensed grower by the same percentage as it exceeds the authorized canopy; and seize, destroy, confiscate, or place an administrative hold on any flowering cannabis plants produced in excess of the canopy. 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. 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. 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. 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. As a condition of licensure, the licensed grower shall: comply with the standards adopted under paragraph (1) of this subsection; and negotiate in good faith with employees and any legitimate labor organization recognized by the Administration.

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. Subject to subsection (e) of this section and except as provided in subparagraph (ii) of this paragraph: 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 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. The amount of the conversion fees in subparagraph (i) of this paragraph may not be less than $100,000. If a business holds a grower and processor license, the fee shall be based on total gross revenue from both license types. This subsection applies only to a business that: held a Stage One Preapproval for a license before October 1, 2022; and was not operational before October 1, 2022. Subject to subsection (e) of this section, a grower or processor shall pay a one–time conversion fee of $50,000. Subject to subsection (e) of this section, a dispensary shall pay a one–time conversion fee of $25,000. This subsection applies only to an applicant applying for a cannabis license under § 36–404 of this subtitle. An applicant for a standard license, an incubator space license, or an on–site consumption license shall pay an application fee of $5,000. An applicant for a micro license shall pay an application fee of $1,000. Subject to paragraphs (2) and (3) of this subsection, the Administration shall establish licensing and renewal fees for all cannabis licenses. 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: for initial license fees, $50,000; and for renewal license fees, the lesser of 10% of the standard cannabis licensee’s annual gross revenue or $50,000. 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. The one–time conversion fees under this section: may be paid in separate installments; and shall be paid in full on or before January 1, 2025. 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. All fees collected under this section shall be paid to the Administration.

On or before January 1, 2024, the Administration shall begin issuing first round licenses in accordance with subsection (d) of this section. On or after May 1, 2024, the Administration shall begin issuing second round licenses in accordance with subsection (e) or (f) of this section. Subject to paragraphs (1) and (2) of this subsection, the Administration may issue licenses in accordance with subsection (g) of this section. The Administration shall: 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; connect potential social equity applicants with the Office of Social Equity; accept and process applications for licenses: in response to a request for applications issued under this section; for a period of 30 calendar days; and beginning on a date that is at least 60 calendar days after the date on which the Administration issued the request for applications; award cannabis licenses in at least two separate rounds in accordance with this section; and reserve a reasonable number of licenses to allow micro licenses to transition to standard licenses, as determined in regulations by the Administration. 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. The Administration may not: accept more than one application per license type from an applicant in any round; accept more than two applications from an applicant in any round; require that an applicant possess or own a property or facility to operate a cannabis business at the time of application; 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 conduct a market demand study before the first round licenses are issued. The Administration may adopt regulations concerning the equity and fairness of the pool of applicants throughout the application process. To be licensed, an applicant shall submit to the Administration: an application fee in accordance with § 36–403 of this subtitle; and an application developed by the Administration under this title. 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: for standard licenses: 20 grower licenses; 40 processor licenses; and 80 dispensary licenses; for micro licenses: 30 grower licenses; 30 processor licenses; and 10 dispensary licenses; and 10 incubator space licenses. 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: a detailed operational plan for the safe, secure, and effective cultivation, manufacture, or dispensing of cannabis; 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 a detailed diversity plan. 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. First round application submissions for all license types are limited to social equity applicants. 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. 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. For the second round of licensing, the Administration shall issue licenses in accordance with subsection (f) or (g) of this section. 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: for standard licenses: 25 grower licenses; 25 processor licenses; and 120 dispensary licenses; for micro licenses: 70 grower licenses; and 70 processor licenses; and 10 incubator space licenses. 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. 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: for standard licenses: 25 grower licenses; 25 processor licenses; and 120 dispensary licenses; for micro licenses: 70 grower licenses; and 70 processor licenses; and 10 incubator space licenses. 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: a detailed operational plan for the safe, secure, and effective cultivation, manufacture, or dispensing of cannabis; 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 a detailed diversity plan. Application submissions for micro licenses and on–site consumption licenses under this subsection are limited to social equity applicants. 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. The Administration shall award licenses as needed in accordance with a market demand study. The Administration may: limit some or all of the licenses issued under this paragraph to social equity applicants; and 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. 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. To the extent practicable and authorized by the U.S. Constitution, a cannabis licensee shall comply with the State’s Minority Business Enterprise Program. 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. 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. 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. 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.

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. A political subdivision may: establish reasonable zoning requirements for cannabis businesses; and decide how to distribute its allocation of revenue under § 2–1302.2 of the Tax – General Article. A political subdivision may not: establish zoning or other requirements that unduly burden a cannabis licensee; 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; prohibit transportation through or deliveries within the political subdivision by cannabis businesses located in other political subdivisions; 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 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. 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: the facility was properly zoned and operating on or before January 1, 2023; or the cannabis licensee: held a Stage One Preapproval for a license before October 1, 2022; and was not actively engaged in the growing, processing, or dispensing of cannabis before October 1, 2022. A political subdivision or special taxing district may not impose a tax on cannabis.

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. 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. 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. The Department of General Services shall contract with a nonprofit organization to operate a facility under subsection (b) of this section. An incubator space licensee may purchase equipment to be used by other incubator space licensees in the same incubator space. The Administration shall adopt regulations to establish a Maryland Incubator Program based on the best practices in other states.

A person shall obtain an on–site consumption license from the Administration before operating a premises where cannabis may be consumed. 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. 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. Subject to the limitations in § 36–405 of this subtitle, a political subdivision may: prohibit the operation of on–site consumption establishments; prohibit or restrict the smoking or vaping of cannabis at on–site consumption establishments; adopt zoning and planning requirements for on–site consumption establishments; or establish hours of operation for on–site consumption establishments. An on–site consumption license authorizes an entity, for the purposes of on–site consumption, to: distribute cannabis or cannabis products; acquire cannabis or cannabis products from a cannabis licensee in accordance with this title; repackage cannabis or cannabis products for the purpose of creating single–serving products; and process single–serving products. An on–site consumption license does not authorize the holder of the license to cultivate cannabis. 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. 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: building code permits; mechanical code permits; a use and occupancy certificate; and any other applicable permits or licenses. An on–site consumption establishment shall comply with the following standards when acting in accordance with subsection (c)(1) of this section: manufacturing standards established under § 36–203 of this title; laboratory testing standards established under § 36–203 of this title; and packaging and labeling standards established under §§ 36–203 and 36–203.1 of this title. The Administration shall: maintain a list of all on–site consumption establishments in the State; and make the list available on its website. An on–site consumption establishment may not: allow on–duty employees of the business to consume cannabis on the licensed premises; distribute or allow the distribution of free samples of cannabis on the licensed premises; allow the consumption of alcohol on the licensed premises; allow the smoking or vaping of tobacco or tobacco products on the licensed premises; allow an activity on the licensed premises that would require an additional license under this title, including growing or dispensing; allow the indoor smoking of cannabis or cannabis products on the licensed premises; allow the use or consumption of cannabis by a patron who displays any visible signs of intoxication; admit onto the licensed premises an individual who is under the age of 21 years; 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; allow an individual to remove cannabis or cannabis products from the premises of the establishment; or sell or distribute cannabis or cannabis products to an individual that are intended as more than a single–serving product. An on–site consumption establishment shall: require all employees to successfully complete a cannabis agent training program authorized under this title: within 90 days of a new employee’s start date; and at least once every 2 years; and ensure that the display and consumption of cannabis or cannabis products are not visible from outside of the licensed premises. An on–site cannabis establishment shall educate consumers by providing informational materials regarding the safe consumption of cannabis. 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. 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. 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.

The Administration shall register at least one independent testing laboratory to test cannabis and cannabis products that are to be sold in the State. The Administration shall hold medical and adult–use cannabis testing to the same standards. To be registered as an independent testing laboratory, a laboratory must: meet the application requirements established by the Administration; pay an application fee determined by the Administration; and meet the standards and requirements for accreditation, inspection, and testing established by the Administration. An independent testing laboratory license is valid for 2 years on initial licensure. An independent testing laboratory license is valid for 2 years on renewal. A registered independent testing laboratory is authorized to test and transport cannabis and cannabis products on behalf of cannabis licensees. 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. 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. 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. The Administration shall adopt regulations that establish: the standards and requirements to be met by an independent testing laboratory to obtain a registration; the standards of care to be followed by an independent testing laboratory; and the basis and processes for denial, revocation, and suspension of a registration of an independent testing laboratory. 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. 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. The Administration shall convert all independent testing laboratory registrations in accordance with this subsection.

The following businesses shall register with the Administration in order to provide services to a cannabis licensee: a transporter; a security guard agency; a waste disposal company; a cannabis nursery; and any other type of cannabis business that is authorized by the Administration to provide plant or product–touching services to cannabis licensees. The Administration shall adopt regulations that establish: the standards and requirements to be met by an entity to obtain a registration under this subtitle; and the basis and processes for approval, denial, revocation, and suspension of the cannabis registration. 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.

Beginning July 1, 2023, a cannabis licensee that is operating a dispensary shall: ensure that it has adequate supply for qualifying patients and caregivers; set aside operating hours or dedicated service lines to serve only qualifying patients and caregivers; and 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. Except as provided in subsection (d) of this section, a licensed dispensary may not locate within: 500 feet of: 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 a pre–existing playground, recreation center, library, public park, or place of worship; or 1,000 feet of another dispensary under this title. 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. 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. The distance requirements under subsection (b) of this section do not apply to a dispensary license that was: converted under § 36–401(b)(1)(ii) of this subtitle; and properly zoned and operating before July 1, 2023. 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. A political subdivision may not adopt an ordinance: 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 prohibiting outdoor cannabis cultivation on a premises that was properly zoned for outdoor cannabis cultivation on or before June 30, 2023. A political subdivision may: by ordinance, establish a distance limitation for dispensaries of up to 100 feet from an area zoned for residential use; or apply to dispensaries the distance limitation for licensed alcoholic beverage retailers from an area zoned for residential use. 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. 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.

A protest against a license renewal may be filed with the Administration by at least 10 individuals who are: residents, commercial tenants who are not holders of or applicants for a license, or real estate owners; and located within 1,000 feet of the licensed premises. A protest against a license renewal shall: be on the basis of: a violation of this title; a violation of civil or criminal law; conduct by a licensee that creates or maintains conditions that allow other individuals to act in a manner that disturbs the public peace, including: obstruction of public rights–of–way by unruly crowds; assault, battery, or other disorderly conduct that disturbs the public peace; vandalism; or littering; or any other violation established by the Administration by regulation; and be signed under oath. 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. 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. In hearing and making a determination on a protest filed against a license renewal, the Administration: may consider only: issues arising out of specific complaints about the operation of the licensed premises; and the performance of the license holder for the 4–year period immediately preceding the date of the renewal application; and may not consider zoning issues. The Administration may adopt regulations to implement this section.