Maryland
The Old Line State
Maryland has a history of having a robust Medical-Use market. Maryland made history by legalizing Adult-Use cannabis in November 2022, with regulations being signed into law on May 3, 2023. Sales are set to begin on July 1, 2023 with Adult-Use expansions being handled by the new and independent Maryland Cannabis Administration, which will work to study and make effective decisions that prioritize social equity.
Legislation
Governor Wes Moore signed the Cannabis Reform Act into law, which establishes the framework for adult-use cannabis in Maryland with oversight from what is now known as the Alcohol, Tobacco, and Cannabis Commission. The Act implements a system of regulatory and licensing designations for Adult-Use, imposes a sales and use tax of 9% on sales, and requires the Maryland Cannabis Administration (MCA) to convert medical cannabis licenses to also serve non-medical consumers.
To view the full legislation, please click the button below.
Licenses
The MCA has established three main license types available for Standard Licensing and for Micro Licensing. These license types are:
Grower licenses
Processor licenses
Dispensary licenses
There are two additional license-types that will become available as the MCA moves forward:
Incubator Space licenses
On-Site Consumption licenses
Existing medical operators in the state can convert their licenses to cultivate, process, or directly sell cannabis product for the Adult-Use consumer base. The first round of Adult-Use licensing is expected to only serve social equity applicants, and is slated to begin in Fall 2023.
The MCA will conduct studies to further understand the disparities of historically marginalized populations within the cannabis industry, and depending on those results, the second round will begin in 2024 for all general applicants.
For more information, please visit the Adult-Use Cannabis Legalization page created by the MCA by clicking the button below.
Timeline
April 1, 2022: Maryland legislature has approved HB 1 – allowing state voters to vote on whether Adult-Use legalization becomes a reality on the November ballot. A week after, Governor Hogan has announced to establish the implementation of HB 837 to become effective without his signature should HB 1 pass in November’s ballot. HB 837 permits state residents 21 years of age and older to legally possess up to 1.5 ounces of cannabis, and allows them to cultivate no more than two plants as of July 2023.
November 8, 2022: Maryland overwhelmingly voted to legalize adult-use cannabis through ballot measure 'Maryland Question 4'. This measure allows adults 21 and older to consume cannabis recreationally as of July 1, 2023. Until then, cannabis use is decriminalized: adults 21+ may possess up to 1.5 oz and residents can also grow/consume in private. But, activities such as selling, purchasing, and public consumption remain prohibited.
May 3, 2023: Governor Wes Moore officially signed Maryland adult-use cannabis legislation (SB 516 / HB 556) into law, establishing regulations to facilitate adult-use sales and creating a framework to prioritize social equity. Sales are slated to begin on July 1, 2023.
September 8, 2023: The MCA opens the Social Equity Verification Portal, a platform to verify social equity status for those interested in obtaining licensure from the first Adult-Use lottery. You must register through this portal in order to submit an application for this round. The Social Equity Verification portal will close on November 7.
November 13, 2023: The MCA opened a 30-day application window for social equity entrepreneurs to apply for a license which closed on December 12. The first round is limited to social equity applicants carrying 65% or greater ownership. An applicant may only be included on a max of two (2) applications across all license categories in any licensing round.
The MCA may award up to the following number of licenses in the following categories. For standard licenses: 20 grower licenses, 40 processor licenses, and 80 dispensary licenses. For micro licenses: 30 grower licenses, 30 processor licenses, 10 dispensary licenses, 10 incubator space licenses. More information about this licensing round can be found on the MCA website.
As more market updates come in, we will update this Timeline. For more information on Maryland’s Cannabis Industry, please click the button below.