Maryland has signed its cannabis legislation into law, marking the start of the process to establish a new regulatory agency for Maryland cannabis licenses, including Maryland cannabis dispensary licenses. Within the next year, two rounds of licensing will be available, with the first round exclusively focused on social equity.
To qualify as a social equity applicant, at least 65% ownership and control must be held by individuals who have lived in disproportionately impacted areas, attended public schools in those areas, or attended a 4-year institution of higher education where 40% of attendees were eligible for a Pell Grant.
Applicants must submit their applications within 60 days of the Request for Applications release, and the application period will last for 30 days. Each owner can submit one application per type, with a maximum of two types of applications in total. Specific site control or local approval is not required at the application stage, and applicants will be evaluated on a pass/fail basis.
In the first round, standard license allocations include 20 Maryland cannabis grower licenses, 40 Maryland cannabis processor licenses, and 80 Maryland cannabis dispensary licenses, while microbusiness license allocations include 10 dispensary licenses, 30processor licenses, and 30 grower licenses.
The second round will have 25 grower licenses, 25 processor licenses, and 120 dispensary licenses for standard license allocations, and 70 processor licenses and 70 grower licenses for microbusiness license allocations.
While towns cannot ban cannabis businesses, they can impose “reasonable” zoning restrictions, which effectively establish local license limits and create competition in some cases. Regulations outlining interactions with municipalities, details regarding application requirements and procedures, ownership limitations, passive investment, and processes for identifying additional license opportunities will be forthcoming.
To apply, an applicant must submit an application fee of $5,000 for a standard license or $1,000 for a micro license.
Applications are expected to be released in September 2023, and in addition to meeting the criteria for a social equity applicant, an application must include a detailed operational plan, a business plan, and a detailed diversity plan.
- Grower License
- Application fee: $2,000
- Licensing fee: $125,000 for a 2-year license, $250,000 for a 4-year license
- Processor License
- Application fee: $2,000
- Licensing fee: $40,000 for a 2-year license, $80,000 for a 4-year license
- Dispensary License
- Application fee: $2,000
- Licensing fee: $40,000 for a 2-year license, $80,000 for a 4-year license
