<?xml version='1.0' encoding='utf-8'?>
<regulation prefix="Regulation" num=".11" citation="COMAR 14.17.06.11" title_num="14" subtitle_num="17" chapter_num="06" heading="Licensee Co-Location.">
  <paragraph num="A.">
    <text>In this regulation, the following terms have the meanings indicated.</text>
  </paragraph>
  <paragraph num="B.">
    <text>Terms Defined.</text>
    <paragraph num="(1)">
      <text>“Co-located licensee” means a grower or processor licensee who has entered an agreement to share a licensed premises.</text>
    </paragraph>
    <paragraph num="(2)">
      <text>“Commingling” means mixing any cannabis belonging to one licensee with cannabis that belongs to another licensee.</text>
    </paragraph>
    <paragraph num="(3)">
      <text>“Storage area” means any single room or container designated for cannabis to be kept before distribution, transfer, or processing.</text>
    </paragraph>
  </paragraph>
  <paragraph num="C.">
    <text>A maximum of three licensees may enter an agreement to share a licensed premises, provided:</text>
    <paragraph num="(1)">
      <text>Provided at least one of the licensees operates in the region in which they were awarded a license; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>The licensees are growers or processors.</text>
    </paragraph>
  </paragraph>
  <paragraph num="D.">
    <text>If co-located licensees share equipment or production materials, each licensee shall:</text>
    <paragraph num="(1)">
      <text>Use equipment at separate times;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Sanitize any equipment and work space before it is used by another licensee; and</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Maintain independent and unique storage areas.</text>
    </paragraph>
  </paragraph>
  <paragraph num="E.">
    <text>A co-located licensee shall:</text>
    <paragraph num="(1)">
      <text>Adhere to all requirements for operating a licensed grower or processor premises, whichever applies;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Establish and follow all standard operating procedures for sharing a licensed premises and, if applicable, sharing equipment;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>Store and keep separate all of its cannabis at all times to avoid commingling at any stage of the growth or production process;</text>
    </paragraph>
    <paragraph num="(4)">
      <text>Have equal, independent, and unique control over access to its storage area, including the ability to add or remove its badged agents to access any area in which their plants or products are stored;</text>
    </paragraph>
    <paragraph num="(5)">
      <text>Have equal independent and unique access to its video surveillance recordings, which shall be recorded and saved as required by COMAR 14.17.10.02 or COMAR 14.17.11.02, whichever applies; and</text>
    </paragraph>
    <paragraph num="(6)">
      <text>Maintain independent and accurate records within the seed-to-sale tracking system as required by regulations for their license type.</text>
    </paragraph>
  </paragraph>
  <paragraph num="F.">
    <text>A co-location agreement:</text>
    <paragraph num="(1)">
      <text>May not transfer ownership or control of a license in violation of Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland;</text>
    </paragraph>
    <paragraph num="(2)">
      <text>May not be used to circumvent any requirements for operating a licensed premises;</text>
    </paragraph>
    <paragraph num="(3)">
      <text>May not take effect prior to Administration:</text>
      <paragraph num="(a)">
        <text>Approval of the agreement terms; and</text>
      </paragraph>
      <paragraph num="(b)">
        <text>Inspection of the shared premises; and</text>
      </paragraph>
    </paragraph>
    <paragraph num="(4)">
      <text>If co-located licensees are sharing security or video surveillance systems, shall specify which licensee is responsible for ensuring a shared system complies with COMAR 14.17.10.02F and G or COMAR 14.17.11.02E and F, whichever apply.</text>
    </paragraph>
  </paragraph>
  <paragraph num="G.">
    <text>Upon signing a co-location agreement, a co-locating licensee shall provide to the Administration:</text>
    <paragraph num="(1)">
      <text>A copy of the co-location agreement; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Any other documents relevant to the co-location as requested by the Administration.</text>
    </paragraph>
  </paragraph>
  <paragraph num="H.">
    <text>If the Administration determines a co-location agreement violates §F of this regulation, the Administration may:</text>
    <paragraph num="(1)">
      <text>Deny or rescind approval of the co-location agreement; and</text>
    </paragraph>
    <paragraph num="(2)">
      <text>Fine, suspend, restrict, revoke, or otherwise sanction a co-locating licensee.</text>
    </paragraph>
  </paragraph>
</regulation>