Chapter 07. Micro Licenses
Regulation .01 Scope.LinkCopy Citation
This chapter applies to all micro licenses authorized under Alcoholic Beverages and Cannabis Article, §36-401(c)(2), Annotated Code of Maryland.
Regulation .02 Term of License and License Renewal.LinkCopy Citation
A.
In addition to §§B—D of this regulation, terms of license and license renewal for micro licenses are as established in COMAR 14.17.06.02B—K.
B.
A micro licensee may not exceed growing, processing or dispensing operational restrictions set forth in Alcoholic Beverages and Cannabis Article, §36-401(c)(2), Annotated Code of Maryland.
C.
The Administration may verify compliance with the operational restrictions under §B of this regulation within the first 24 months of a micro licensee’s operations by:
(1)
For growers, measuring and inspecting the canopy owned or otherwise controlled by the licensed micro grower;
(2)
For processors, querying the seed-to-sale tracking system for the prior 12 months of operations; and
(3)
For dispensaries, investigating or otherwise verifying that the licensee:
(a)
Operates only in the region in which the license was awarded or authorized;
(b)
Employs no more than ten registered agents; and
(c)
Does not operate a physical storefront.
D.
The Administration may restrict, reduce, fine, or otherwise sanction any micro licensee who is found to be in violation of §B of this regulation.
Regulation .03 Change of Location.LinkCopy Citation
A.
Change of location procedures and requirements are as established in COMAR 14.17.06.03.
B.
A petition to expand the authorized service area of a micro dispensary does not constitute a change of location under this regulation.
Regulation .04 Ownership, Control, and Management Agreements for Micro Licenses.LinkCopy Citation
A.
Transfer of ownership interest requirements and procedures for micro licenses are established in COMAR 14.17.06.04.
B.
Management agreement requirements and procedures for micro licenses are established in COMAR 14.17.06.05.
Regulation .05 Micro Grower License.LinkCopy Citation
A.
A micro grower license authorizes the licensee to:
(1)
Cultivate or package cannabis; and
(2)
Provide cannabis to other licensees and registered independent testing laboratories.
B.
A micro grower’s canopy may not exceed the restrictions as established in Alcoholic Beverages and Cannabis Article, §36-401(c)(2)(i), Annotated Code of Maryland.
C.
On or before October 1 of each year, micro growers shall report to the Administration the square footage of indoor and outdoor canopy as defined in COMAR 14.17.01.
D.
The Administration may:
(1)
Inspect the licensed premise to verify the micro grower’s annual submission of canopy square footage; and
(2)
Restrict, reduce, fine, or otherwise sanction any micro grower who misrepresents canopy square footage.
E.
For any micro grower found in violation of §B of this regulation, the Administration may:
(1)
Reduce the canopy of the micro grower by the same percentage as it exceeds the authorized canopy; and
(2)
Seize, destroy, confiscate, or place an administrative hold on any flowering cannabis plants produced in the excess of the canopy.
F.
For the purposes of calculating canopy under §§B—E of this regulation, canopy that is rented, leased, operated, or otherwise controlled by one micro grower to another micro grower shall only be attributed to the micro grower in control of the square footage.
G.
A micro grower licensed under this regulation shall operate in accordance with COMAR 14.17.10.
H.
A micro grower licensed under this regulation may convert to a standard grower license under COMAR 14.17.06.06 in accordance with Regulation .08 of this chapter.
Regulation .06 Micro Processor License.LinkCopy Citation
A.
A micro processor license authorizes the licensee to:
(1)
Transform cannabis into another product or an extract and package and label the cannabis product; and
(2)
Provide cannabis to licensed dispensaries and independent testing laboratories.
B.
A micro processor licensed under this chapter may not exceed the restrictions as established in Alcoholic Beverages and Cannabis Article, §36-401(c)(2)(ii), Annotated Code of Maryland, for the processing of cannabis products.
C.
A micro processor licensed under this regulation shall operate in accordance with COMAR 14.17.11.
D.
A micro processor licensed under this regulation may convert to a standard processor license under COMAR 14.17.06.07 in accordance with Regulation .08 of this chapter.
Regulation .07 Micro Dispensary License.LinkCopy Citation
A.
A micro dispensary license authorizes the licensee to operate a delivery service as defined in COMAR 14.17.01.
B.
A micro dispensary may not:
(1)
Operate a physical storefront; or
(2)
Employ more than 10 individuals.
C.
A micro dispensary licensed under this regulation shall only deliver cannabis products to residences and medical facilities in the authorized service area under §D of this regulation.
D.
Authorized Service Area.
(1)
A micro dispensary may only make deliveries of cannabis or cannabis products:
(a)
In the region in which its license was awarded; and
(b)
As specifically permitted by the Administration in §D(3) of this regulation, its expanded authorized service area.
(2)
A micro dispensary may submit a petition to expand its authorized service area in the manner specified by the Administration.
(3)
The Administration may approve, deny, or issue temporary approval of a petition to expand a micro dispensary’s authorized service area.
(4)
The authorized service area shall be entirely within the State of Maryland.
(5)
A micro dispensary may:
(a)
Store cannabis in a facility outside of the authorized service area in accordance with COMAR 14.17.12.03; or
(b)
Transit outside the authorized service area:
(i)
For the purpose of stocking or restocking inventory; or
(ii)
When it is most efficient, as part of a planned delivery route.
E.
A micro dispensary licensed under this regulation shall operate in accordance with COMAR 14.17.12.03—.11.
F.
A micro dispensary licensed under this regulation may convert to a standard dispensary license under COMAR 14.17.06.08 in accordance with Regulation .08 of this chapter.
Regulation .08 Conversion to Standard License.LinkCopy Citation
A.
A micro licensee in good standing may apply to the Administration to convert to a standard license once it has been operational for at least 24 months, in a manner determined by the Administration.
B.
The Administration may deny the micro licensee for conversion to a standard license if the micro licensee:
(1)
Has been operational for 24 or fewer months;
(2)
Has been found to violate any operational restrictions in Regulation .02B of this chapter;
(3)
Would be in violation of the ownership or control restrictions in COMAR 14.17.16;
(4)
Does not provide adequate notice to the Administration; or
(5)
For any other good cause determined by the Administration.
C.
A micro license converted under §§A and B of this regulation to a standard license shall be valid through the date of the initial micro license.
D.
Prior to the conversion of micro license to a standard license the licensee shall pay in full a pro-rated license fee.
E.
The pro-rated license fee required under §D of this regulation shall be calculated by the Administration by:
(1)
Subtracting any previous license fee paid for the valid micro license that is being converted into the standard license from the standard fee under COMAR 14.17.21; and
(2)
Pro-rating the remaining license fee total by months remaining on the initial 5-year term of the micro license.
F.
A micro license converted under this regulation:
(1)
Shall be forfeited by the licensee as a condition of conversion and the Administration may award the forfeited license in a subsequent licensing round;
(2)
Shall only be for the corresponding standard license type; and
(3)
May not be converted to an incubator space license under COMAR 14.17.06.09 or on-site consumption license under COMAR 14.17.06.10.
G.
The Administration shall reserve enough standard licenses, by license type, to allow a reasonable number of micro licenses to convert to a standard license.
Regulation .09 Licensee Co-Location.LinkCopy Citation
Licensee co-location requirements and procedures are as established in COMAR 14.17.06.11.
Chapter annotations
Authority: Alcoholic Beverages and Cannabis Article, §§36-202—203, 36-401, and 36-503, Annotated Code of Maryland
History: Effective date:
History: Regulations .01—.08 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024
History: Regulations .01—.08 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)
History: Regulations .01—.08 adopted effective July 22, 2024 (51:14 Md. R.678)
History: Regulation .02C amended effective April 14, 2025 (52:7 Md. R. 324)
History: Regulation .09 adopted effective May 26, 2025 (52:10 Md. R. 436)