Having completed its first, social equity applicant only general Adult-Use license lottery earlier this summer, the State of Maryland is expected to announce the next round of its cannabis licensing in the near future. This will be the first round of licensing that allows non-medical & non-social equity applicants to apply. That is especially attractive as the State’s current cannabis market is performing exceptionally well, with sales having surpassed $1.1 billion in the first 12 months following legalization.

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.

Legislative Updates

As we await the imminent announcement from the Maryland Cannabis Administration regarding the commencement of the second round of adult-use cannabis licenses, significant updates have already shaped the landscape for operators in the state. Early this June, the Maryland cannabis industry underwent substantial changes that will impact both current and prospective license holders. These transformations stem from recent legislative actions by the Maryland General Assembly, alongside regulatory adjustments by the Maryland Cannabis Administration (MCA).

The Maryland General Assembly introduced and approved pivotal legislative developments earlier this year, now in effect as of June, which include:

Extending the authorization for current license holders to offer delivery services until July 1, 2025.
Ensuring that profit distribution in cannabis businesses aligns directly with ownership percentages.
Prohibiting county and municipal officials from imposing stricter zoning regulations on dispensaries compared to retail dealers, such as liquor stores.
Introducing a new category of Cannabis Registrants known as Cannabis Nurseries, empowering them to supply immature plants to cannabis enterprises.

Regulation Updates

In tandem with legislative changes, the MCA and Administrative, Executive, and Legislative Review (AELR) committee have approved emergency regulations effective until August 30, 2024. These regulations include:

Considering management agreements as a transfer of control if they grant unilateral authority to make significant marketing, production, and financial decisions.
Allowing licensees to transfer equity without MCA review and approval for transfers under 5%.
Requiring conditional license holders to demonstrate adequate funding within six months of receiving their conditional license.
Permitting licensees to issue employee stock options as part of their compensation plans.

Ready to Become a Licensed Cannabis Business Owner in Maryland?

Global Go, which is now officially designated on the State of Maryland’s Social Equity Conditional Licensee Technical Assistance Service Provider List, specializes in cannabis licensing and applications (99% win-rate in hundreds of applications), compliance automation, advanced analytics, SOPs, mergers and acquisitions, new product launches, technology, security, and best practices. Enhance your prospects for success by reaching out to a Global Go Cannabis Application Director (including team members based in the Delaware Valley and Mid-Atlantic) and accessing invaluable Maryland insights today.

Learn more

Featured