# Alcoholic Beverages and Cannabis (GAB)

## Title 36. Medical and Adult-Use Cannabis

### Subtitle 4. Cannabis Licensing

#### Section 36-401

(a)

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

  (2) A cannabis license issued under this subtitle:

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

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

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

(b)

  (1) The Administration shall:

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

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

      (1) a conversion fee is paid in accordance with Sec. 36-403 of this subtitle; and

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

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

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

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

  (2) The Administration may:

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

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

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

    (iv) conditionally award cannabis licenses.

(c)

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

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

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

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

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

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

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

    (iii) for dispensaries, to operate a delivery service that sells cannabis or cannabis products without a physical storefront, provided that the licensee employs not more than 20 registered cannabis agents.

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

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

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

  (1) for standard licenses:

    (i) 75 grower licenses;

    (ii) 100 processor licenses; and

    (iii) 300 dispensary licenses;

  (2) for micro licenses:

    (i) 100 grower licenses;

    (ii) 100 processor licenses; and

    (iii) 10 dispensary licenses;

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

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

(e)

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

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

    (i) for standard licenses and micro licenses:

      (1) one grower licensee;

      (2) one processor licensee; and

      (3) not more than four dispensary licensees;

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

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

  (3)

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

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

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

(f)

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

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

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

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

    (iii) persons with common investments; and

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

(g) Notwithstanding any provisions of this title, the holder of a dispensary license issued by the Natalie M. LaPrade Medical Cannabis Commission who converts the license or a registrant with the Natalie M. LaPrade Medical Cannabis Commission may continue to deliver medical cannabis until July 1, 2027.

(h) A license issued under this title:

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

  (2) is subject to:

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

    (ii) regulations authorized under this article.

(i)

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

    (i) may not:

      (1) operate under the license; or

      (2) renew the license; but

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

  (2) The purchaser of a license sold by a license holder who does not convert a license under paragraph (1) of this subsection is responsible for paying the one-time conversion fee under Sec. 36-403 of this subtitle.

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Md. Code Ann., Alco. Bev. (as displayed at mgaleg.maryland.gov, October 16, 2026)