Regulation .03 Conversion of Medical Cannabis License.
Regulation .03 Conversion of Medical Cannabis License.LinkCopy Citation
A.
This regulation applies to each licensee required to pay a conversion fee under Alcoholic Beverages and Cannabis Article, §36-403, Annotated Code of Maryland.
B.
The conversion fee shall be based on the gross revenue of a licensee and calculated by the Administration using the State’s seed-to-sale tracking system for calendar year 2022.
C.
Licensees choosing to convert their license shall, on or before July 1, 2023:
(1)
Pay the conversion fee as calculated by the Administration in full; or
(2)
Enter into a payment plan with the Administration.
D.
The payment plan under §C(2) of this regulation shall establish:
(1)
The conversion fee as calculated by Administration;
(2)
The exact payment amount required under each payment installment; and
(3)
Payment due dates as directed by the Administration for four equal payment installments over an 18-month period.
E.
On or before January 1, 2025, a licensee shall pay the installment payment in full in accordance with §D of this regulation.
F.
A licensee that does not meet a payment deadline is subject to:
(1)
An administrative hold on their ability to transfer cannabis or cannabis products to another licensee or distribute or dispense cannabis or cannabis products to a qualifying patient, registered caregiver, or consumer until payment is remitted to the Administration;
(2)
A fine of up to $5,000 for each day past the deadline that the payment is not received; and
(3)
After a period of 30 days, license suspension or revocation.
G.
A converted license shall be valid for a period of 5 years, beginning on July 1, 2023.
H.
A converted license is not transferrable prior to July 1, 2028, except as provided under Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland.