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Maryland Cannabis Conditional License Guide

Maryland Cannabis: What to do After Getting a Conditional License

Maryland’s first batch of conditional licenses have been awarded, and the next application window could be announced any day now. However, there is still confusion surrounding the process of taking a conditional cannabis business license, to a full license.

A licensee needs to convert their conditional license to a full license before they can begin operating their business. Securing a conditional license is only the first step in becoming a cannabis business owner. It doesn’t actually authorize anything major, and you can’t begin operating yet, but you’re on the right track. 

It’s also an important tool for securing investors. You can use your conditional license to show that you’re serious about starting a cannabis business, since you’ve already gone through the long process of securing a conditional license. 

You can also leverage your conditional license while looking for a location. By showing landlords or sellers that you’re on track to own and operate a legal and profitable business, you might find more success while trying to secure control over a space. 

So if you’re a conditional license holder, you’re well on your way to becoming a fully-licensed cannabis business owner in Maryland. However, you aren’t quite there yet, and you’ll need to take immediate action to be sure things don’t fall through.

By following these steps, you’ll be able to convert your conditional license into a full license and start your cannabis business, ASAP!

Conditional license timeline in Maryland on the page about Maryland cannabis application

Step 1: Watch for an email from the MCA

If your conditional license application is selected, the MCA will send you an email  confirming that you’ve been selected. This email should include some immediate next steps that will likely be specific to your application.

Remember, being selected in the lottery doesn’t mean you’re guaranteed a conditional license. It means the MCA will conduct further assessments and verify the accuracy and legitimacy of your conditional license application. So, keep a close watch on your inbox for any communication from the MCA. They may need to clarify details or require additional actions from you to finalize the license. If they request more information, you’ll have only ten calendar days to respond.

During this time, you may have to make some immediate cures to your application, which can be stressful and intimidating. If you find yourself stuck and running out of time, seek professional assistance. If handled incorrectly, this ten day period can make-or-break your chances at becoming a cannabis business owner in the foreseeable future.

Step 2: Supplementing Your Application

Now that you’ve responded to the MCA’s email and taken any immediate action that was required, you will be awarded a conditional license. If you don’t get the email right away, don’t panic! It could take up to five days for the MCA to notify you that you’ve been awarded the conditional license.

Once you’re a conditional license holder, you’ll be entered into the 18 month licensing period. During this time, you’ll be required to complete a variety of tasks that will turn your conditional license into a full license. 

The Supplemental Application is the first task you’ll want to begin working on. The sooner you submit this application, the better. This is because you’ll only have the 18 month licensing period to mend any deficiencies that are in the supplemental application.

Filling out the supplemental application will require you to undergo a criminal background check, a financial background investigation, Verify any information or supporting documentation provided in the application, identify whether any negative legal action has been taken against your business, and present any new ownership interest. Make sure you get in touch with all of the necessary government agencies and financial institutions to give them permission to share any necessary information with the MCA. 

You’ll also need to submit proof of legal control over a compliant location. This means that you’ll need to get zoning approval or planning approval from your municipality and hold a lease or ownership over a compliant location in your region.

If things aren’t seeming to go your way during this 18 month licensing period, don’t panic. You have the option to apply for a 6 month extension to tie up any loose ends. We don’t recommend relying on this extra 6 months since it isn’t guaranteed, so do your best to get everything finished within the designated 18 months

Step 3: Planning for Operations

Once your supplemental application is complete and submitted, you’ll only have a couple things left to do. This includes registering the business with the State Department of Assessments and Taxation, and listing any new investors or financial aids you’re utilizing. This 18 month conditional licensing period is a great time to apply for grants or loans, since you can use your conditional license as a tool to leverage your position in a new and thriving industry. You’ll also want to add any new owners or passive investors to your license during the conditional period.

After completing these steps, the MCA will notify you when you have been awarded your full license.

What Comes Next?

The MCA hasn’t released too many details surrounding the steps that are required after receiving a full license. With that being said, it’s likely that there will be a site-inspection and required operational plans that the MCA will need to approve before you can open your doors, or begin operating.

CannDelta’s Maryland Cannabis Business Consultants

Contacting CannDelta’s Maryland cannabis business consultants will simplify the post-licensing process. Our thorough knowledge of the Maryland cannabis application process, cannabis licensing requirements, and Maryland cannabis regulations will take you from conditional license holder, to the owner and operator of a cannabis business.

Fill out the form below to contact CannDelta’s Maryland business consultants today!

Frequently Asked Questions

You can submit a conditional license application in Maryland in the second application window which is expected to open in 2024. Getting a conditional license is the first step in obtaining a full license. You need a full license before you can open a cannabis business in Maryland or engage in any operations authorized under the full license. The cannabis license requirements vary depending on the license applied for.

You can get a conditional license by submitting a Maryland cannabis application. This license application must meet all application requirements in accordance with the Maryland cannabis regulations. Applicants must also fit the eligibility criteria, fill out all application forms provided by the MCA, and any other required documents. After submitting an application, the MCA will hold a lottery draw to determine which applicants will be awarded a conditional license.

Yes. You need a conditional license before you can get a full license, and you need a full license to open a cannabis business in Maryland. Getting a conditional license is the first step in the process of becoming a licensed cannabis business owner in Maryland. After getting a conditional license, you will be required to submit a supplemental application, find a compliant location, and engage in various other tasks to convert your conditional license into a full license.

A conditional license is valid for 18 months from the day the conditional license is issued. However, a conditional license holder can apply for a one-time extension of up to six months. This extension needs to be applied for through the MCA. During this 18 month period, conditional license holders must complete all of the required actions required to convert their conditional license to a full license.