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<chapter num="09" heading="Other Cannabis Businesses" title_num="14" subtitle_num="17">
  <regulation prefix="Regulation" num=".01" heading="Scope.">
    <text>This chapter applies to any registrant who conducts transportation, disposal, or security services for any cannabis licensee in Maryland.</text>
  </regulation>
  <regulation prefix="Regulation" num=".02" heading="Cannabis Registrants.">
    <paragraph num="A.">
      <text>A registrant shall be registered with the Administration prior to providing any laboratory, transportation, disposal, or security services for any cannabis licensee in Maryland.</text>
    </paragraph>
    <paragraph num="B.">
      <text>To register, a cannabis business shall submit:</text>
      <paragraph num="(1)">
        <text>A completed registration form in the manner specified by the Administration;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The name of each agent for the cannabis business;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>The registration fee specified in COMAR 14.17.21;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Any secure cannabis transport vehicle for inspection by the Administration; and</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Proof that fingerprints have been submitted to CJIS and the FBI for every cannabis agent.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>The Administration may approve a cannabis registration if the business:</text>
      <paragraph num="(1)">
        <text>Submits a complete and accurate registration form;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Is authorized to do business in Maryland; and</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Pays the required fee specified in COMAR 14.17.21.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>The Administration may deny a registration or renewal for any good cause as determined by the Administration.</text>
    </paragraph>
    <paragraph num="E.">
      <text>The Administration may collect demographic information from applicants at the time of registration.</text>
    </paragraph>
    <paragraph num="F.">
      <text>The Administration may deny or revoke a cannabis business registration if any agent or individual with ownership interest in the business is convicted of or pleads 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.</text>
    </paragraph>
    <paragraph num="G.">
      <text>The registration is valid for 2 years.</text>
    </paragraph>
    <paragraph num="H.">
      <text>The business may renew its registration by submitting to the Administration:</text>
      <paragraph num="(1)">
        <text>A registration renewal form completed in the manner specified by the Administration; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The registration fee established in COMAR 14.17.21.</text>
      </paragraph>
    </paragraph>
    <paragraph num="I.">
      <text>A licensee may only contract with Administration-registered cannabis businesses for the provisions of services under this regulation.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".03" heading="Transport Operations.">
    <paragraph num="A.">
      <text>This regulation governs the transport of cannabis or cannabis products by a licensed grower, processor, dispensary, or a registered transporter business between the premises of licensees, independent testing laboratories, the State Cannabis Testing Laboratory, and for green waste disposal.</text>
    </paragraph>
    <paragraph num="B.">
      <text>A licensee or registrant shall ensure:</text>
      <paragraph num="(1)">
        <text>Agents have on their person their current, active driver’s license;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Agents have on their person Administration-issued proof of:</text>
        <paragraph num="(a)">
          <text>The licensee’s or registrant’s current licensure or registration; and</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Their own registration;</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>While in transit, agents do not wear any clothing or symbols that may indicate ownership or possession of cannabis;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Each vehicle used to transport cannabis is operated by at least one registered agent; and</text>
      </paragraph>
      <paragraph num="(5)">
        <text>All cannabis is transported in one or more locked and secure storage containers which may not be accessible while in transit.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>A vehicle used to transport cannabis:</text>
      <paragraph num="(1)">
        <text>Shall have and display current vehicle registration;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Shall be insured as required by law;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Shall be equipped with locked and secure storage containers anchored to the inside of the vehicle;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Shall conceal storage containers so they are not visible or identifiable from outside of the vehicle; and</text>
      </paragraph>
      <paragraph num="(5)">
        <text>May not display any sign or illustration related to cannabis or a licensee.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>The requirements in §C(2) and (3) do not apply to a registrant that only disposes of green waste.</text>
    </paragraph>
    <paragraph num="E.">
      <text>Electronic Manifest.</text>
      <paragraph num="(1)">
        <text>A shipping licensee shall create an electronic manifest to record the chain of custody for each cannabis shipment.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>The electronic manifest shall record:</text>
        <paragraph num="(a)">
          <text>The name and address of the shipping licensee;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>The shipping licensee’s shipment identification number;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>The weight and description of each individual package that is part of the shipment, and the total number of individual packages;</text>
        </paragraph>
        <paragraph num="(d)">
          <text>The name of the registered grower agent, processor agent, or dispensary agent that prepared the shipment;</text>
        </paragraph>
        <paragraph num="(e)">
          <text>The name and address of the receiving licensee or other receiving party if applicable; and</text>
        </paragraph>
        <paragraph num="(f)">
          <text>Any handling or storage instructions.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>The electronic manifest shall contain the following entries as points in the chain of custody:</text>
        <paragraph num="(a)">
          <text>An entry by a registered grower agent, registered processor agent, or registered dispensary agent who has prepared the shipment, including the date and time of preparation;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>An entry by a registered grower agent, processor agent, or dispensary agent of the date and time of the placement of the shipment into the secure cannabis transport vehicle;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>An entry by the receiving licensee’s agent receiving the shipment, including the date and time of the acceptance; and</text>
        </paragraph>
        <paragraph num="(d)">
          <text>If any other person had custody or control of the shipment, that person’s identity, the circumstances, duration, and disposition.</text>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="F.">
      <text>Delivering and Receiving Cannabis Shipments.</text>
      <paragraph num="(1)">
        <text>Upon arrival of a secure cannabis transport vehicle, the shipping licensee agent who delivers the shipment shall notify an appropriate receiving licensee agent to continue the chain of custody in the electronic manifest of the shipment of cannabis or cannabis products.</text>
      </paragraph>
      <paragraph num="(2)">
        <text>An agent of the receiving licensee shall:</text>
        <paragraph num="(a)">
          <text>Log into the seed-to-sale tracking system;</text>
        </paragraph>
        <paragraph num="(b)">
          <text>Take custody of a shipment of products containing cannabis;</text>
        </paragraph>
        <paragraph num="(c)">
          <text>Confirm that:</text>
          <paragraph num="(i)">
            <text>The agent who delivers the shipment is carrying appropriate identification;</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>The packaging is secure, undamaged, and appropriately labeled;</text>
          </paragraph>
          <paragraph num="(iii)">
            <text>Each package in the shipment is labeled as described in the electronic manifest; and</text>
          </paragraph>
          <paragraph num="(iv)">
            <text>The contents of the shipment are as described in the electronic manifest;</text>
          </paragraph>
        </paragraph>
        <paragraph num="(d)">
          <text>Record the confirmations in the electronic manifest;</text>
        </paragraph>
        <paragraph num="(e)">
          <text>Obtain in the electronic manifest the signature or identification number of the agent who delivers the shipment;</text>
        </paragraph>
        <paragraph num="(f)">
          <text>Record in the electronic manifest the date and time the receiving licensee agent takes custody of the shipment;</text>
        </paragraph>
        <paragraph num="(g)">
          <text>Enter the products containing cannabis into the seed-to-sale tracking system;</text>
        </paragraph>
        <paragraph num="(h)">
          <text>Segregate the items in the shipment from the inventory until the item can be inspected;</text>
        </paragraph>
        <paragraph num="(i)">
          <text>Inspect each item to ensure that the packaging of each item is undamaged, accurate, and complete; and</text>
        </paragraph>
        <paragraph num="(j)">
          <text>Upon determining the item passes inspection, release the item into the stock.</text>
        </paragraph>
      </paragraph>
      <paragraph num="(3)">
        <text>The agent who delivers the shipment shall provide a copy of the electronic manifest for the shipment to the receiving licensee.</text>
      </paragraph>
      <paragraph num="(4)">
        <text>The agent who delivers the shipment shall provide the completed electronic manifest to the shipping licensee.</text>
      </paragraph>
      <paragraph num="(5)">
        <text>The shipping licensee shall retain the electronic manifest for the shipment for 2 years.</text>
      </paragraph>
      <paragraph num="(6)">
        <text>Discrepancy in the Shipment.</text>
        <paragraph num="(a)">
          <text>A discrepancy between the electronic manifest and the shipment, identified by an agent who delivers the shipment or a receiving agent, shall be reported by each agent to the agent’s supervisor.</text>
        </paragraph>
        <paragraph num="(b)">
          <text>If a discrepancy can be immediately rectified, the accepting processor supervisor shall record the rectification in the electronic manifest.</text>
        </paragraph>
        <paragraph num="(c)">
          <text>A discrepancy that cannot be immediately rectified shall be reported to the Administration by the receiving licensee within 24 hours of the observation of the discrepancy and the shipping licensee shall initiate an investigation of the discrepancy.</text>
        </paragraph>
        <paragraph num="(d)">
          <text>The shipping licensee shall submit to the Administration:</text>
          <paragraph num="(i)">
            <text>Within 7 calendar days of the observation of the discrepancy, a preliminary report of an investigation of a discrepancy; and</text>
          </paragraph>
          <paragraph num="(ii)">
            <text>Within 30 calendar days, a final report of the investigation.</text>
          </paragraph>
        </paragraph>
      </paragraph>
    </paragraph>
    <paragraph num="G.">
      <text>Licensees and registrants transporting or receiving edible cannabis products shall comply with COMAR 14.17.11.14.</text>
    </paragraph>
    <paragraph num="H.">
      <text>A registered transporter business may not deliver cannabis to qualifying patients, registered caregivers, or adult-use consumers.</text>
    </paragraph>
  </regulation>
  <regulation prefix="Regulation" num=".04" heading="Incubator Spaces.">
    <paragraph num="A.">
      <text>An incubator space may provide one or more of the following:</text>
      <paragraph num="(1)">
        <text>Secure storage of cannabis or cannabis products for licensed micro dispensaries;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Commercial kitchen space for the processing and production of cannabis products by licensed micro processors; or</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Space for the cultivation of cannabis by licensed micro growers.</text>
      </paragraph>
    </paragraph>
    <paragraph num="B.">
      <text>An incubator space shall comply with the requirements of COMAR 14.17.10, 14.17.11, and 14.17.12 for the:</text>
      <paragraph num="(1)">
        <text>Security of the premises;</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Sanitation of any cannabis or cannabis product produced at the incubator space;</text>
      </paragraph>
      <paragraph num="(3)">
        <text>Safety of any cannabis cultivated at the incubator space, including the use of pesticides;</text>
      </paragraph>
      <paragraph num="(4)">
        <text>Storage of cannabis and cannabis products; and</text>
      </paragraph>
      <paragraph num="(5)">
        <text>Use of the seed-to-sale tracking system.</text>
      </paragraph>
    </paragraph>
    <paragraph num="C.">
      <text>The incubator space licensee shall make a good faith effort to:</text>
      <paragraph num="(1)">
        <text>Secure any cannabis, cannabis products, inventory, equipment, or other materials on the licensed premise; and</text>
      </paragraph>
      <paragraph num="(2)">
        <text>Prevent theft or diversion of any cannabis, cannabis products, inventory, equipment, or other materials by license holders, agents, or members of the public.</text>
      </paragraph>
    </paragraph>
    <paragraph num="D.">
      <text>The incubator space licensee holder may assess a fair market rent for the use or storage of the facility.</text>
    </paragraph>
    <paragraph num="E.">
      <text>The incubator space licensee may not accept or receive any equity stake, ownership share, or control of a micro license facility as a condition of rent or use of the space.</text>
    </paragraph>
  </regulation>
  <annotations>
    <annotation type="Authority">Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, 36-401, and 36-409, Annotated Code of Maryland</annotation>
    <annotation type="History" subtype="Administrative History">Effective date:</annotation>
    <annotation type="History" subtype="Administrative History">Regulations .01—.05 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024)</annotation>
    <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)</annotation>
    <annotation type="History" subtype="Administrative History">Regulations .01—.04 adopted effective July 22, 2024 (51:14 Md. R. 678)</annotation>
    <annotation type="History" subtype="Administrative History">Regulation .02 amended effective April 14, 2025 (52:7 Md. R. 324)</annotation>
  </annotations>
</chapter>