Chapter 05. Application Process and Issuance of Licenses

Deny an application that:

Request any additional information from any applicant, if it deems the information necessary to review or process the application; and

If the applicant does not provide the additional requested information within 10 calendar days, deny the application.

A detailed operational plan for the safe, secure, and effective operation of the business;

A business plan demonstrating a likelihood of success and sufficient ability and experience on the part of the applicant, and providing for appropriate employee working conditions;

A detailed diversity plan; and

For the first round of licensing and otherwise as required under Alcoholic Beverages and Cannabis Article, §36-404, Annotated Code of Maryland, for any subsequent round of licensing, documentation that the applicant meets the requirements of a social equity applicant.

Operational plan for the safe, secure, and effective cultivation, manufacture, or dispensing of cannabis;

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;

Detailed diversity plan; and

Ownership and control of the applicant.

The applicant fails to provide any additional information or supporting documentation requested pursuant to §A(4) of this regulation within 10 calendar days;

Any additional information or supporting documentation submitted by the applicant demonstrates the applicant is not eligible for a license under this subtitle or Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland; or

The Administration determines that the applicant violated Regulation .02D of this chapter.

Undergo a criminal history records check in accordance with Alcoholic Beverages and Cannabis Article, §36-505, Annotated Code of Maryland;

Complete a financial background investigation conducted by the Administration;

Verify any information or supporting documentation provided in the application;

Disclose any adverse action taken against a professional or business license held in any jurisdiction by the applicant or any individual or entity holding an ownership interest in the applicant;

Waive any contractual, statutory, or common law obligation of confidentiality and authorize any government agency in any jurisdiction to release to the Administration all information the conditional licensee has provided to any other jurisdiction while seeking a cannabis-related license in that other jurisdiction, as well as the information obtained by that other jurisdiction during any investigation it may have conducted regarding the applicant;

Release all financial institutions, fiduciaries, and other parties from any contractual, statutory, or common law obligation of confidentiality to provide financial, personal and background information relevant to the conditional licensee’s capacity to manage a licensed facility; and

Identify and demonstrate legal control of the proposed site, through lease, purchase, or other means, for the cannabis business.

Begins on the day that a conditional license is issued to the selected applicant; and

Expires 24 months after the day that conditional license was issued or at the end of an extension granted by the Administration.

Will consider demonstrating legal control of a premises to indicate consistent good faith effort if the premises:

May use its discretion to determine that a conditional licensee has demonstrated consistent good faith effort if the conditional licensee provides adequate documentation that a political subdivision has unduly burdened its efforts toward becoming operational, as defined in Alcoholic Beverages and Cannabis Article, §36-405, Annotated Code of Maryland.

Complete a supplemental license application;

Establish legal control of the proposed site, through lease, purchase, or other means, for the cannabis business;

Notify the Administration of establishment of legal control of the proposed site;

Within 6 months of being issued a conditional license, demonstrate adequate capitalization to enable the business to become operational;

Gain zoning or planning approval from a political subdivision, if applicable; and

Register the business with the State Department of Assessment and Taxation.

Engage in purchasing, possessing, cultivating, manufacturing, or selling cannabis or cannabis products;

Make any transfer of an ownership interest that causes a change in the individual or entity that holds the controlling ownership interest;

Make any transfer of control, as defined in COMAR 14.17.01; and

If the conditional licensee qualified as a social equity applicant, make any transfer of an ownership interest that causes the conditional licensee to no longer comply with the social equity applicant definition in COMAR 14.17.01.

Grants and loans from new or existing financial sources not listed in the initial application; and

Owners and passive investors.

24 months after the day the conditional license was issued; or

If granted an extension, the day after the expiration of any extension granted by the Administration;

Are under the legal control of the conditional licensee; and

Comply with all zoning and planning requirements.

Were awarded damages related to farming operations in Maryland;

Have provided evidence to the Administration that they have not been fully compensated for discrimination and continue to experience challenges due to past or present discrimination; and

Meet all other application criteria established by the Administration under this chapter.