Section 36-401 - Licensing(a)(1) A person must obtain a cannabis license issued by the Administration to operate a cannabis business.(2) A cannabis license issued under this subtitle:(i) authorizes the holder of the license to operate a medical and adult-use cannabis business;(ii) is valid for 5 years on initial licensure and 5 years on renewal; and(iii) may be transferred only in accordance with Subtitle 5 of this title.(b)(1) The Administration shall:(i) issue standard licenses, micro licenses, incubator space licenses, and on-site consumption licenses in accordance with this title;(ii) on or before July 1, 2023, convert licenses that were issued to medical cannabis growers, processors, and dispensaries, including those businesses preapproved for licensure, to licenses to operate a medical and adult-use cannabis business if: 1. a conversion fee is paid in accordance with § 36-403 of this subtitle; and2. the business complies with the ownership restrictions under subsection (e) of this section;(iii) set production, processing, sales, and other limitations and requirements for all license types;(iv) issue dispensary licenses in a manner that encourages a balanced geographic distribution based on population and market demand within a specific county, as well as cross-jurisdictional market demand; and(v) adopt regulations requiring licensees whose licenses were converted by the Administration under item (ii) of this paragraph to reserve a specified amount of cannabis for social equity licensees.(2) The Administration may: (i) inspect a cannabis licensee to ensure compliance with this title and the regulations adopted under this title;(ii) revoke a cannabis license if good faith efforts have not been made by the cannabis licensee to establish a cannabis business within 18 months after the license was awarded;(iii) impose penalties or rescind the license of a cannabis licensee that does not meet the standards for licensure established under this title or regulations adopted under this title; and(iv) conditionally award cannabis licenses.(c)(1) A standard license authorizes the holder of the license: (i) for 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) for processors, to process more than 1,000 pounds of cannabis per year, as calculated by the Administration; and(iii) for dispensaries, to operate a store at a physical location that sells cannabis or cannabis products.(2) A micro license authorizes the holder of the license: (i) for growers, to operate not more than 10,000 square feet of indoor canopy or its equivalent, as calculated by the Administration;(ii) for processors, to process not more than 1,000 pounds of cannabis per year, as calculated by the Administration; and(iii) for dispensaries, to operate a delivery service that sells cannabis or cannabis products without a physical storefront, provided that the licensee employs not more than 10 employees.(3) An incubator space license authorizes the holder of the license to operate a facility within which a micro licensee may operate in accordance with § 36-406 of this subtitle.(4) An on-site consumption license authorizes the holder of the license to operate a facility on the premises of which individuals can smoke outdoors, vape, or consume cannabis in accordance with § 36-407 of this subtitle.(d) The Administration may not issue more than the following number of licenses per type, including licenses converted under subsection (b)(1)(ii) of this section: (1) for standard licenses: (ii) 100 processor licenses; and(iii) 300 dispensary licenses;(2) for micro licenses: (ii) 100 processor licenses; and(iii) 10 dispensary licenses;(3) for incubator space licenses, 10 licenses; and(4) for on-site consumption licenses, 50 licenses.(e)(1) This subsection applies to all licenses, including licenses converted under subsection (b)(1)(ii) of this section.(2) Subject to paragraph (3) of this subsection, a person may have an ownership interest in or control of, including the power to manage and operate:(i) for standard licenses and micro licenses:2. one processor licensee; and3. not more than four dispensary licensees;(ii) for incubator space licenses, not more than two licensees; and(iii) for on-site consumption licenses, not more than two licensees.(3)(i) A person who owns or controls an incubator space licensee or an on-site consumption licensee may not own or control any other cannabis licensee.(ii) The Administration shall adopt regulations limiting a person or fund from acquiring a nonmajority ownership interest in multiple cannabis businesses beyond the limitations established under this subsection.(4) The restrictions in paragraph (2) of this subsection do not apply to a person or an entity who holds an ownership interest only as a passive investor.(f)(1) The holder of a cannabis license may not surrender the license and apply for a new license in the same or a similar category.(2) The limitation under paragraph (1) of this subsection applies to:(i) affiliates, holding companies, parent companies, or other related entities;(ii) individuals and firms with identical or substantially identical business or economic interests;(iii) persons with common investments; and(iv) firms that are economically dependent on each other through contractual or other relationships.(g) Notwithstanding any provisions of this title, the holder of a dispensary license issued by the Natalie M. LaPrade Medical Cannabis Commission who converts the license or a registrant with the Natalie M. LaPrade Medical Cannabis Commission may continue to deliver medical cannabis until July 1, 2024.(h) A license issued under this title:(1) is not property and does not confer property rights; and(2) is subject to: (i) suspension, revocation, and restrictions authorized by law; and(ii) regulations authorized under this article.(i)(1) On and after July 1, 2023, the holder of a license issued by the Natalie M. LaPrade Medical Cannabis Commission who does not convert the license: (i) may not: 1. operate under the license; or2. renew the license; but(ii) may continue to hold the license for resale to another person for conversion under this subtitle.(2) The purchaser of a license sold by a license holder who does not convert a license under paragraph (1) of this subsection is responsible for paying the one-time conversion fee under § 36-403 of this subtitle.Added by 2023 Md. Laws, Ch. 255, Sec. 5, eff. 5/3/2023.Added by 2023 Md. Laws, Ch. 254, Sec. 5, eff. 5/3/2023.