Maryland officials now accept applications for grants that will help medical marijuana businesses become dual licensed and serve the adult market once legalization comes into effect next month.
The Department of Commerce (DOC), which is responsible for publishing new guidelines for the industry and for granting grants and loans, announced that it would begin accepting applications from social equity licensees on August 1 for support of market participation by way of startup capital and operational costs.
The Cannabis Business Assistance Loan/Grant Fund was created under a cannabis regulation bill signed by Gov. Wes Moore, a Democrat who signed the bill last month will also provide grants to Historically Black Colleges and Universities for “cannabis related programs”, such as business development and training.
Moore stated in a release that the Cannabis Business Assistance Fund would help to ensure a more equitable transition as medical cannabis licensees in Maryland move from recreational marijuana use to adult-use. The fund will promote equitable economic growth, and empower small, minority and women-owned business to have a larger stake in this rapidly growing industry.
The Department of Health and Human Services (HHS) has announced that the first round will be accepting applications for grants to cover the costs associated with converting existing medical marijuana growers, processors, and dispensaries to dual license holders under the draft regulations that were published by the Marijuana Cannabis Administration last Thursday.
Businesses that qualify for grants could receive up to $50,000, depending on their license type. The applications will be reviewed on a rolling schedule until June 30, and businesses that have already paid for the license fee can apply for reimbursement.
To qualify, an applicant must have fewer than 50 employees on May 1, 2018. The business must be owned by at least 51 percent of individuals whose net worth is not more than $1.7 million, according to in DOC.
The state will use the same funds in August to award grants to social equity businesses who have received pre-approval by October 1, 2022, and “have the resources to become operational and to participate in the adult-use and medical cannabis industries.”
Assistance will be provided in the form conditional grants and loans for startup capital or operating expenses. The notice states that applicants must be able show they can become operational within a specified time frame with the requested funding.
The fund will also promote programs that help businesses apply for licenses, and organizations like incubators. The funds “will be used to assist and train small businesses including women and minority business owners who want to get licensed in the adult use cannabis industry”.
DOC Secretary Kevin Anderson stated that “the fund is an important step to reducing barriers and providing equitable opportunities for small, minority and women-owned business in the medical marijuana industry.”
He said, “We are looking forward to working with the business community and Historically Black Colleges and Universities to continue to diversify our industry.”
The Joint Committee on Administrative, Executive, and Legislative Review must still review the draft emergency regulations released by Maryland marijuana regulators last week. Before they are implemented, the rules must be published in The Maryland Register.
The 41-page draft rule sets definitions, codifies personal possession limits, lays out responsibilities for regulators, explains licensing protocol–including for social equity applicants–clarifies enforcement authorities and penalties and outlines packaging and labeling requirements.
Moore’s regulatory bill, which he signed last month, covers a lot more ground. It sets a tax rate of nine percent on marijuana products and allocates tax revenues in specialized ways.
DOC also has almost 100 zip codes it designated as disproportionately impacted to inform the approval of social equity applications.
Separately, state cannabis regulators released new guidance documents last week for the industry that covered rules like license fees and packaging, advertising, transfers of ownership, the medical cannabis program as well as growers, processors, and dispensaries.
On June 14, regulators will host a webcast on cannabis regulations.
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A referendum approved by voters in November legalizes the possession of up 1.5 ounces cannabis. This puts pressure on regulators so that they can implement these rules as soon as possible.
The House Cannabis Referendum and Legalization Workgroup was created in 2021 by Speaker Adrienne (D).
The members held numerous meetings in order to help shape future regulations. Following the approval by Maryland voters of a legalization referendum during the election last year, led to the implementation of complementary laws that covered basic policies such as possession and low level home cultivation.
The legislation will remove the criminal penalties for possession up to 2.5 ounces. Adults aged 21 years and older can grow up to 2 plants for their own use, and give cannabis away without compensation.
Former convictions for conduct that is now legalized under the proposed legislation will be automatically expunged. People currently serving prison time for these offenses are eligible to resentence. People convicted of possession with intent for distribution can now petition the court for expungement after three years.
Some parts of the referendum came into effect at the start of the year. Possession of less than 1.5 ounces cannabis is now a civil offence punishable with a $100 fine. More than 1.5 ounces or up to 2.5 ounces are subject to a $250 penalty.
Maryland lawmakers began advancing adult-use legalization in 2021, but there were no votes. In 2021, the Senate Finance Committee heard a bill on legalization. This was followed by a House Judiciary Committee on a cannabis proposal.
Maryland legalized medical marijuana in 2012 through a law passed by the Maryland legislature. In 2012, Maryland legalized medical cannabis through an act of the legislature.
Moore has also allowed a recent bill to become law which prevents the police from relying solely on the smell or possession of marijuana as the basis for a search.
Last week, he also signed a measure that ensures the state will not interpret parents’ and guardians’ use of marijuana in a responsible and lawful manner as “neglect” by children.
Minnesota Governor says Indian tribes could start selling marijuana before regulators approve standard licenses
Photo by Mike Latimer.
The post Maryland Opens Grant Applications for Marijuana Businesses As Regulators Release New Industry Guidance first appeared on Marijuana Moment.
