Maryland Governor Signs Marijuana Regulation Bill Into law, Sales To Start July 1

Maryland’s Governor has approved a bill that regulates marijuana sales . This sets the stage for legalization throughout the state.

Last month, the House and Senate reached a consensus on cannabis legislation. It was sent to Gov. Wes Moore, a Democrat, signed the bill into law on Wednesday.

Today, I signed into law bills regarding reproductive rights and equality in the cannabis industry.

Watch our remarks and bill signing ceremony here: https://t.co/vOr4dUSOtn

Watch bill signing ceremony here: https://t.co/ShCRwMMhj0

Governor Wes Moore May 3 2023

At a signing event, the governor stated that this law would “ensure the equitable rollout of cannabis recreational in our state.”

He said that the criminalization of marijuana had a devastating impact on low-income communities and communities of colour. “We want to ensure that the legalization marijuana lifts these communities in a profound manner now,” he said.

The state’s voter approved legalization law will take effect in July.

The House and Senate bills introduced in the first part of this session were identical. However, they were modified differently as they progressed through committees. The opposite chamber’s bill was taken up by key committees last month and reprinted to bring the text in line. The legislation was passed after both sides of the Capitol had debated and voted on the measure.

The Senate passed provisions that addressed the issue of tax rates for marijuana and the regulator that will oversee the market. Other compromises were made to bring the bill into its final form.

This is an overview of Maryland’s marijuana regulation law as passed by legislators in SB516 and HB 556

Cannabis will be subject to a tax of nine percent. The tax will not apply to medical marijuana sales.

The counties will receive 35 percent of the marijuana tax revenue, while the Cannabis Public Health Fund, Cannabis Business Assistance Fund, and each county will get another 5 percent. The five percent revenue going to counties will be split up with fifty percent going to local governments based on sales of marijuana at retail outlets in these jurisdictions.

The program will be regulated by a new independent Maryland Cannabis Administration.

If they have paid a fee, existing medical cannabis dispensaries can be upgraded to dual licensees when legalization begins on July 1.

By July 1, 2024, regulators will have to begin approving new marijuana business licenses.

There will eventually be a cap on the number of licenses granted to 300 dispensaries. There will be a cap of 10 dispensaries for smaller microbusinesses, and a maximum of 100 processors and growers.

The applicants for social equity must have 65 percent of their ownership held by people who lived in areas disproportionately affected for atleast five out of the last 10 years. They also need to have attended public schools in this area for atleast five years or have met other criteria based on an disparity study.

The state Department of Commerce will create a Capital Access Program to provide low-interest loan opportunities and promote social equity for applicants.

In 2025, a total of $5 million per year will be allocated to grant existing medical cannabis dispensaries who form “meaningful partnerships” (involving mentorship, training, and/or sharing business space) with social equity applicants.

The law will stop the sale of delta-8 hemp on the general market and require that all intoxicating cannabis-based products are sold through licensed marijuana businesses.

Localities can’t impose extra taxes on existing medical cannabis businesses, and they cannot prevent them from operating within their jurisdiction if those businesses convert to dual licensing.

Patients who use medical cannabis will be allowed to grow four plants instead of two as per the current law. Taxes on medical marijuana will be eliminated.

No new dispensaries can be built within 500 feet from a school, child care facility, playground or library. The distance between dispensaries must be at least 1,000 feet.

The conversion fee will be based on 10 percent of the gross income of growers and processors, with a cap of $2 million. For dispensaries it is 8 percent gross revenue.

A single business entity cannot own more that four dispensaries.

Social equity licensees will be required to reserve at least 25% of the shelf space available in dispensaries for their cannabis products.

The microbusinesses will have a limit of 10 licenses. There is no language that allows regulators to approve more in the future.

Indoor smoking is not permitted in licensed consumption facilities. However, people can smoke on the patios of these facilities.

Repackaging of products will be allowed by dispensaries.

By July 2025, regulators will have to establish rules for the sale of marijuana online.

—

Marijuana Moment tracks more than 1,000 cannabis and drug policy bills that have been introduced in state legislatures, and Congress. Patreon supporters who pledge at least $25/month gain access to our interactive charts, maps and hearing calendar.

Discover more about our marijuana bills tracker. Become a Patreon supporter to gain access.

—

The bills, which were emergency legislation and took effect immediately, needed three-fifths approval in both chambers before they could be implemented. The voter-approved referendum legalizes possession of up 1.5 ounces cannabis on July 1. This puts pressure on legislators to create regulations for commerce.

The bill was partly the result of a lot of work by bipartisan and bicameral legislators who were members of House Cannabis Referendum and Legalization Workgroup , which was created in 2021 by Speaker Adrienne Jones .

The members held many meetings to inform the future regulations after Maryland voters approved a legalization referendum during last year’s election. This triggered implementation of complementary legislation which covered rules for basic polices like 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.

All past convictions for conduct that is now legal will be 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 to discuss adult-use marijuana 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.

Maryland legislators recently approved another measure that prohibits police from searching based solely on the smell or possession of marijuana.