This chapter applies to all standard cannabis licenses, including: Standard grower, processor, and dispensary licenses authorized under Alcoholic Beverages and Cannabis Article, §36-401(c)(1), Annotated Code of Maryland; Converted licenses under Alcoholic Beverages and Cannabis Article, §36-403, Annotated Code of Maryland; Converted micro licenses under COMAR 14.17.07.08; Incubator space licenses, authorized under Alcoholic Beverages and Cannabis Article, §36-406, Annotated Code of Maryland; and On-site consumption licenses, authorized under Alcoholic Beverages and Cannabis Article, §36-407, Annotated Code of Maryland. Licenses converted under Alcoholic Beverages and Cannabis Article, §36-403, Annotated Code of Maryland, are valid for 5 years from the date of the initial conversion fee payment to the Administration. As a condition of licensure, a licensee shall comply with all subregulatory guidance issued by the Administration, including but not limited to bulletins, notices, resolutions, seed-to-sale tracking system guidance, and technical authorities posted to the Administration’s website. A cannabis license under this chapter is valid for: 5 years on initial licensure; and 5 years on renewal. At least 90 calendar days before the expiration of a license, the Administration shall notify the licensee of the: Date on which the license expires; Process and the fee required to renew the license; and Consequences of a failure to renew the license. At least 30 calendar days before a license expires, a licensee seeking approval shall submit: The renewal application in the form designated by the Administration; Proof that fingerprints have been submitted to Criminal Justice Information System and the Federal Bureau of Investigation for each agent and any owner with an ownership interest of 5 percent or more; To a full inspection of the licensed premises as described in COMAR 14.17.14.03, unless a full inspection was satisfactorily completed within 3 months before the date of the license expiration; and Payment of the fee specified in COMAR 14.17.21. The Administration may renew a license that meets the requirements for renewal as stated in §E of this regulation. If a licensee fails the inspection or submits a deficient application for renewal, the licensee may apply for reinstatement by: Submitting a plan to correct the deficiencies noted during an inspection; and Amending the application for renewal. The Administration may deny a license renewal if: The plan to correct deficiencies identified in an inspection is deficient; The amended application for renewal is deficient; The licensee is repeatedly found in violation of health and safety regulations during the license period; or The licensee is repeatedly found in violation of this subtitle or Title 36, Alcoholic Beverages and Cannabis Article, Annotated Code of Maryland. A licensee who fails to apply for license renewal by the date specified by the Administration, or whose license was not renewed by the Administration: Shall cease operations at all premises; and May not provide cannabis to any entity or individual. A license may be reinstated upon: Payment of the reinstatement fee specified in COMAR 14.17.21; and Submission of a reinstatement application approved by the Administration. A licensee may not register with the State Department of Assessment and Taxation using a legal name that: Uses the terms “cannabis”, “marijuana”, or other synonym related to controlled substances; Suggests the use of cannabis as an intoxicant; or Incorporates any copyrighted material or trademark or service mark attributable to another entity. The Administration may specify the format and manner for all required licensee and conditional licensee submissions. A licensee may apply to change the location of the licensee’s operation. The licensee shall apply for a change of location in the form designated by the Administration along with the fee specified in COMAR 14.17.21. A licensee may not begin cultivation, processing, or dispensing of cannabis at a new location until the Administration approves the change. A dispensary may only change location within the county that the dispensary was awarded a license. A grower or processor may only change location outside of the region in which the grower or processor was awarded a license if the proposed location is part of a co-location agreement as described in COMAR 14.17.06.11. The Administration may deny a change of location application if: The application is not complete in every material detail; Notwithstanding §E of this regulation, the change of location would move the proposed licensed location outside of the region or jurisdiction in which it was awarded; or The change of location otherwise violates a provision of State or local law pertaining to the licensed locations of cannabis businesses. A licensee’s proposed location shall conform to local zoning and planning requirements. A cannabis licensee, including a cannabis licensee whose license was converted in accordance with Alcoholic Beverages and Cannabis Article, §36-401, Annotated Code of Maryland, is not transferable except as provided under Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland. If a proposed transfer is for less than 5 percent of a cannabis licensee and the proposed transfer will not result in the transferee holding 5 percent or more of the licensee, then the proposed transfer does not require approval by the Administration. The Administration may approve a transfer or assignment of ownership if: The Administration receives notice of the intent of the owner of the interest, or of the estate of the owner of the interest, to transfer or assign an ownership interest in a license to another party, in a form prescribed by the Administration; The proposed transfer does not violate Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland; The transferee has paid the required fee specified in COMAR 14.17.21; and The transferee has provided criminal history record and financial information to the Administration. The Administration shall deny transfer of an interest for any proposed transferee: If the transfer violates COMAR 14.17.16; If the transfer would convey a controlling interest in the license prior to the cannabis licensee being licensed and operational for a period of at least 5 years, and is not proposed due to death, disability, incapacity, bankruptcy, or receivership in accordance with a lending agreement of a cannabis licensee or court order; or If, prior to the cannabis licensee being licensed and operational for a period of at least 5 years, the transfer would convey to the transferee the right or authority to obtain a controlling interest in the license at a later date. The Administration may deny transfer of an interest for any proposed transferee if the: Transferee or an individual with ownership or control of the transferee has been convicted of or pleaded nolo contendere to a crime involving moral turpitude, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside; Payment of taxes due in any jurisdiction is in arrears. The Administration may deny transfer of a controlling interest in a license or in an ownership interest of 5 percent or more if the Administration finds good cause to deny the proposed transfer. Any individual or entity identified as having ownership or control of a license may not hold an ownership interest that exceeds the limitations set forth in Alcoholic Beverages and Cannabis Article, §36-401(e), Annotated Code of Maryland. If the Administration approves a transfer of an ownership interest of a license and subsequently the Administration finds that such a transfer violates State, local, or federal law, the Administration may: Issue a fine against any parties involved in the transfer; Declare the transfer void; and Rescind the license. Prior to the transfer, the licensee shall conduct a full inventory of all cannabis and cannabis products, in a manner prescribed by the Administration. Employee Incentive Programs. In this section, the term “incentive unit” means a unit of ownership in the licensee or its parent, subsidiary, or affiliate such as stock or limited liability company membership, issued to an individual as part of a licensee’s employee incentive program or other compensation. A licensee may issue employee incentive units as part of an employee compensation plan. A licensee shall: Establish a detailed employee incentive plan for each individual to whom it intends to issue incentive units and issue incentive units in accordance with the plan; and Upon request, provide a copy of the plan in §J(3)(a) of this regulation, in a manner prescribed by the Administration. A licensee may not issue employee incentive units in a way that violates: This regulation; This chapter; This subtitle; Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland. Incentive units issued to employees under this section may not: Exceed 5 percent total ownership to any one individual; or Change the control structure of the license. In the annual disclosure of ownership and control report required by COMAR 14.17.16.02, a licensee shall disclose any employee incentive unit issuances or transfers that have occurred since the date of the licensee's last annual disclosure submission. Definitions. In this regulation, the following terms have the meaning indicated. Terms Defined. “Management company” means an entity that provides management services to a licensed entity. Management Agreement. “Management agreement” means an arrangement between a management company and a licensee for the provision of services, including but not limited to consulting, advisory, or marketing services related to the licensee’s operations. “Management agreement” does not include arrangements for legal, financial, or other services that do not delegate operational aspects of the business to the service provider. “Management company” means an entity that provides management services to a licensed entity. A management company shall be: Approved by the Administration, in a manner prescribed by the Administration; and In good standing with the State Department of Assessments and Taxation. A licensee shall provide a copy of a management agreement to the Administration and include: Information detailing any compensation paid in exchange for the management services; Criminal history record and financial information of the third party providing the management services; and Any other information relevant to the management agreement requested by the Administration. A management agreement may not take effect unless the Administration has: Received proper notice of the management agreement, as specified in §C of this regulation; Received the required fee specified in COMAR 14.17.21; and Approved the management agreement. The Administration may deny a management agreement: If the management agreement constitutes an invalid transfer of an ownership interest in a license, as specified in Regulation .04 of this chapter; If the criminal history record information or the background investigation reveals the personnel of a third party providing the management services has been convicted of or pleaded nolo contendere to a crime involving moral turpitude, whether or not any appeal or other proceeding is pending to have the conviction or plea set aside; If the management agreement transfers control of a license: In violation of Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland; or As established in §H of this regulation; If the licensee fails to produce additional documentation requested by the Administration; If the management agreement is found to be in violation of §G of this regulation; or For any other good cause. In the case of material change to a management agreement, including but not limited to a change of ownership or control of the management company, the licensee shall: Provide any relevant records, files, or information to the Administration; and Receive Administration approval prior to the material change to the management agreement taking effect. A management agreement under this regulation may not require a licensee to: Operate the business under a marketing plan or system that is associated with the trademark, service mark, trade name, logotype, advertising, or other commercial symbol that designates the licensee as same or similar to the management company; Offer, sell, or distribute cannabis or cannabis products under a marketing plan or system prescribed in substantial part by the entity providing the management agreement; Limit the offerings of cannabis or cannabis products to another licensed entity holding a direct or indirect financial relationship to the management company; or Sell or transfer ownership interest in the license at a later date to the management company. A management agreement may constitute a transfer of control if it conveys to a management company: Unilateral control as defined in COMAR 14.17.01; or The right or authority to make major marketing, production, and financial decisions, including: The right or authority to operate the business under a trademark, service mark, trade name, logotype, or other commercial symbol that is the same as the management company or another licensee; The right or authority to purchase a controlling interest in, or control of, the license at a later date; or The right to or actual payment from the licensee over the course of a calendar year exceeding the greatest of: 25 percent of the licensee’s gross revenue; 50 percent of the licensee’s net profits; or $250,000. A standard grower license authorizes the licensee to: Cultivate or package cannabis; and Provide cannabis, or usable cannabis, to other licensees and registered independent testing laboratories. A standard grower’s canopy may not exceed the canopy restrictions as established in Alcoholic Beverages and Cannabis Article, §36-402, Annotated Code of Maryland. On or before October 1 of each year a standard grower shall report to the Administration the square footage of indoor and outdoor canopy as defined in COMAR 14.17.01. The Administration may: Inspect the licensed premise to verify the standard grower’s annual submission of canopy square footage; and Restrict, reduce, fine, or otherwise sanction any standard grower who misrepresents canopy square footage. For any standard grower found in violation of §B of this regulation, the Administration may: Reduce the canopy of the standard grower by the same percentage as it exceeds the authorized canopy; and Seize, destroy, confiscate, or place an administrative hold on any flowering cannabis plants produced in the excess of the canopy restrictions. For the purposes of calculating canopy under §§B—D of this regulation, canopy that is rented, leased, operated, or otherwise controlled by a standard grower other than its owner shall only be attributed to the standard grower in control of the square footage. For the purposes of calculating canopy under §§B—D of this regulation, 1 square foot of indoor canopy is equal to 4 square feet of outdoor canopy. A standard grower licensed under this regulation shall operate in accordance with COMAR 14.17.10. A standard processor license authorizes the licensee to: Transform cannabis into another product or an extract and package and label the cannabis product; and Provide cannabis to licensed dispensaries and independent testing laboratories. A standard processor licensed under this regulation shall operate in accordance with COMAR 14.17.11. A standard dispensary license authorizes the licensee operating a store at a physical location to acquire, possess, sell, or dispense cannabis products and related materials in accordance with Alcoholic Beverages and Cannabis Article, §36-401(c)(1), Annotated Code of Maryland, including for use by qualifying patients or consumers through a physical storefront. A standard dispensary may not operate a delivery service as defined in COMAR 14.17.01, unless the standard dispensary: Has a qualifying partnership with a micro dispensary under Alcoholic Beverages and Cannabis Article, §1-323, Annotated Code of Maryland, to conduct delivery services on behalf of the standard dispensary; or Otherwise partners or contracts with a micro dispensary to conduct delivery services for the standard dispensary. A standard dispensary licensed under this regulation shall operate in accordance with COMAR 14.17.12. An incubator space license authorizes the licensee to operate a facility within which a micro licensee may operate in accordance with Alcoholic Beverages and Cannabis Article, §36-406, Annotated Code of Maryland. Any individual with ownership or control of an incubator space license may not have any ownership or control any other cannabis license type. Prior to the issuance of incubator space licenses, the Maryland Economic Development Corporation shall identify regional sites in accordance with Chs. 254 (H.B. 556) and 255 (S.B. 516), §13, Acts of 2023. An on-site consumption establishment license authorizes the licensee to operate a licensed premises in which cannabis may be consumed in accordance with Alcoholic Beverages and Cannabis Article, §36-407, Annotated Code of Maryland. An on-site consumption establishment may operate only if the county or, if applicable, the municipality, where the business is located has issued a permit or license that expressly allows the operation of the on-site consumption establishment subject to the limitations in Alcoholic Beverages and Cannabis Article, §36-405, Annotated Code of Maryland. An on-site consumption license does not authorize the holder of the license to: Cultivate cannabis; Process cannabis or cannabis–infused products; or Add cannabis to food prepared or served on the premises. Any individual or entity who holds an ownership interest in or control of an on-site consumption license may not have any ownership interest or control in any other cannabis license. An on-site consumption establishment may apply to change the location of the on-site consumption establishment’s operation. The on-site consumption establishment shall submit an application to the Administration along with the fee specified in COMAR 14.17.21. The application shall include documentation: Of approval from the jurisdiction where the on-site consumption establishment plans to relocate; and That the proposed premises: Is under legal control of the applicant; and Comply with all zoning and planning requirements. The Administration may not award licenses for on-site consumption establishments prior to May 1, 2024. No other cannabis licensee may authorize or permit on-site consumption at the licensed premise, or at any space owned or controlled by the licensee. Prior to operating a facility where the consumption of cannabis is permitted on the premises, a person shall obtain an on-site consumption licensed. An on-site consumption establishment may obtain cannabis and cannabis products from licensed growers, processors, and standard dispensaries. In this regulation, the following terms have the meanings indicated. Terms Defined. “Co-located licensee” means a grower or processor licensee who has entered an agreement to share a licensed premises. “Commingling” means mixing any cannabis belonging to one licensee with cannabis that belongs to another licensee. “Storage area” means any single room or container designated for cannabis to be kept before distribution, transfer, or processing. A maximum of three licensees may enter an agreement to share a licensed premises, provided: Provided at least one of the licensees operates in the region in which they were awarded a license; and The licensees are growers or processors. If co-located licensees share equipment or production materials, each licensee shall: Use equipment at separate times; Sanitize any equipment and work space before it is used by another licensee; and Maintain independent and unique storage areas. A co-located licensee shall: Adhere to all requirements for operating a licensed grower or processor premises, whichever applies; Establish and follow all standard operating procedures for sharing a licensed premises and, if applicable, sharing equipment; Store and keep separate all of its cannabis at all times to avoid commingling at any stage of the growth or production process; 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; 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 Maintain independent and accurate records within the seed-to-sale tracking system as required by regulations for their license type. A co-location agreement: May not transfer ownership or control of a license in violation of Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland; May not be used to circumvent any requirements for operating a licensed premises; May not take effect prior to Administration: Approval of the agreement terms; and Inspection of the shared premises; and 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. Upon signing a co-location agreement, a co-locating licensee shall provide to the Administration: A copy of the co-location agreement; and Any other documents relevant to the co-location as requested by the Administration. If the Administration determines a co-location agreement violates §F of this regulation, the Administration may: Deny or rescind approval of the co-location agreement; and Fine, suspend, restrict, revoke, or otherwise sanction a co-locating licensee. Individuals may file a protest against cannabis license renewal with the Administration in a manner prescribed by the Administration. A valid filing of a protest against license renewal under this regulation shall be made by ten or more individuals who are located within 1,000 feet of the license location and are: Residents; Commercial tenants; or Real estate owners. A protest against license renewal shall be made on the basis of: A violation by the licensee of this subtitle or Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland; A violation by the licensee of civil or criminal law; or Conduct by the licensee that creates or maintains conditions that allow other individuals to act in a manner that disturbs the public peace, including: Obstruction of public rights-of-way by unruly crowds; Assault, battery, or other disorderly conduct that disturbs the public peace; Vandalism; or Littering. Reasonable Grounds. Individuals may only demonstrate reasonable grounds for a protest against license renewal by: Submitting criminal or civil citations, violations, incident reports, or other sanctions against the licensee by: Local law enforcement; The Maryland Cannabis Administration; The Alcohol, Tobacco or Cannabis Commission; or Any other unit of government with the legal authority to issue fines, citations, or other violations; or Submitting criminal or civil citation, violations, or other sanctions against an individual for conduct occurring within 1,000 feet of the licensed establishment by: Local law enforcement; or Any other unit of government with the legal authority to issue fines, citations, or other violations. The Administration shall determine if the protest filed is based on reasonable grounds. In making the determination of reasonable grounds, the Administration may consider the number of citations, violations, or other sanctions filed under §D(1) of this regulation. A submission under §D(1) of this regulation may only be used for the purposes of a single protest against license renewal filing. Protest of Renewal Hearing. If the Administration determines that the protest is based on reasonable grounds, the Administration shall: Hold a hearing in accordance with COMAR 14.17.22 of this subtitle; and Notify the licensee no later than 30 days prior to the hearing date. A hearing under this regulation shall be held within 6 months of the determination by the Administration that the protest was filed on the basis of reasonable grounds. Sanctions. As a result of a hearing held under this regulation, the Administration may immediately: Suspend, fine, or revoke a license; and Develop a corrective action plan for the licensee. In determining sanctions against the licensee, the Administration may consider the: Number of individuals filing the protest; Grounds on which the protest was filed; Number of citations, violations, or other sanctions filed against the license as a part of the protest against license renewal; and Any prior protest against license renewal filings or other violations issued by the Administration. Alcoholic Beverages and Cannabis Article, §§36-202—203, 36-401, 36-405—36-407, 36-411, 36-503, and 36-802, Annotated Code of Maryland Effective date: Regulations .01—.10 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024 Regulations .01—.10 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676) Regulations .01—.10 adopted effective July 22, 2024 (51:14 Md. R. 678) Regulation .02L adopted effective March 16, 2026 (53:5 Md. R. 244) Regulation .03E—G adopted effective May 26, 2025 (52:10 Md. R. 436) Regulation .04 amended effective May 26, 2025 (52:10 Md. R. 436) Regulation .04D, E amended effective March 16, 2026 (53:5 Md. R. 244) Regulation .05A amended effective March 16, 2026 (53:5 Md. R. 244) Regulation .11 adopted effective May 26, 2025 (52:10 Md. R. 436) Regulation .11B, C amended effective March 16, 2026 (53:5 Md. R. 244) Regulation .12 adopted effective April 14, 2025 (52:7 Md. R. 324)