Maryland Cannabis Market Set for 2nd Round of Licensing
On March 14th, 2024 the State of Maryland’s Cannabis Administration (MCA) held its first round of new Adult-Use cannabis licensing. The results can be found here. The next round of Adult-Use cannabis licensing is tentatively scheduled to be announced in May 2024 and will be the first round of licensing that allows non-medical, non-social equity applicants to apply. In the meantime, the state’s General Assembly is currently progressing on House Bill 805, which is aimed at limiting the control of county governments, making it much tougher to impose zoning restrictions on the placement of cannabis retailers.
License Types
The breakdown of the second round of licenses is outlined as follows:
Standard Licenses:
25 grower licenses
25 processor licenses
120 dispensary licenses
Micro Licenses:
70 grower licenses
70 processor licenses
Other Licenses:
10 incubator space licenses
15 on-site consumption licenses
The second round of licenses are authorized to do as followed:
Standard Licenses:
(i) Growers: to operate more than 10,000 square feet, but not more than 300,000 square feet, of indoor canopy or its equivalent, as calculated by the Administration;
(ii) Processors: to process more than 1,000 pounds of cannabis per year, as calculated by the Administration;
(iii) Dispensaries: to operate a store at a physical location that sells cannabis or cannabis products.
Micro Licenses:
(i) Growers: to operate not more than 10,000 square feet of indoor canopy or its equivalent, as calculated by the Administration;
(ii) Processors: to process not more than 1,000 pounds of cannabis per year, as calculated by the Administration; and
Other Licenses:
(i) Incubator Space: to operate a facility within which a micro licensee may operate in;
(ii) On-Site Consumption: to operate a facility on the premises of which individuals can smoke outdoors, vape, or consume cannabis in.
License Allocation
As with the State’s initial application process, a lottery system will be employed for the 2nd round to ensure fairness and equity in the allocation of licenses. All applicants meeting the minimum qualifications will be included in the lottery for license issuance, with the same limits for each license category as mentioned earlier. Those chosen will be graded on a pass-fail basis.
Application submissions for micro licenses will be restricted to social equity applicants, emphasizing a concerted effort towards inclusivity and fairness within the industry.
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