# COMAR Title 14 — Independent Agencies

## Subtitle 17 — Maryland Cannabis Administration

### Chapter 02 — General Regulations

#### Regulation .03 Conversion of Medical Cannabis License.

*COMAR 14.17.02.03*

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.