Maryland Senate and House lawmakers have settled differences over a pair bill to regulate marijuana sales. Both chambers passed the bills in recent days, setting the stage for final vote on both floors within days.
The legislature has worked hard to put the cannabis regulatory legislation in place before July’s voter-approved law goes into effect. Friday’s committee actions have taken them one step closer towards achieving that goal.
Although the bills were identical when they were introduced, they were modified in different ways as they progressed through committee. The Senate Finance Committee and the House Economic Matters Committee took up the bill from the opposing chamber on Friday and approved reprints to align them so that they can move on to the final passage on both floors.
C. T. Wilson, Chairman of the House Economic Matters Committee (D), stated that instead of going back-and-forth about appointing conference members or other stuff, they decided to keep each other’s bills and make amendments to them.” “The goal of the bill is to cross back equally.”
It seems that the bicameral legislators have succeeded in achieving that goal.
The most important differences now resolved concern the tax rate on marijuana products and the regulatory body responsible for the oversight of the market. However, there were other compromises that helped to get the legislation to its final form.
After her panel had approved the amendments, Senator Finance Committee Chair Melony (D), said that “We’ll see the vote on the floor sooner then we think”.
This is an overview of Maryland’s marijuana regulations bills, HTML516 and HTML556 as reconciled.
Cannabis would be subject to a nine percent tax. The tax would not apply to medical marijuana patients.
Three quarters of a percent of the revenue from marijuana taxes would be directed to a community fund. The remaining five percent would be split between counties, a Cannabis Public Health Fund, and a Cannabis Business Assistance Fund. The five percent of revenue that goes to counties would be split up with 50 percent going directly to local municipalities. This is based on the sales of marijuana at retailers located in these jurisdictions.
The program would be regulated by a new independent Maryland Cannabis Administration.
Existing medical marijuana dispensaries will be converted to dual licensees when legalization goes into effect. If they have paid a fee, this would happen on July 1. Additional marijuana business licenses would have to be approved by regulators by July 1, 2024.
Social equity applicants must have at least 65 percent ownership from people who have lived in the disproportionately affected areas for at most five years, have attended public school in this area for at minimum five years, or have met other criteria based on a disparity analysis.
The state Department of Commerce would create a Capital Access Program to encourage the development of industry opportunities for applicants with social equity and provide low-interest loans.
The bill states that $5 million annually would be allocated to medical cannabis dispensaries who form “meaningful partnerships” that include mentorship, training, and/or shared business spaces. This will begin in 2025.
Localities cannot impose additional taxes or prohibit existing medical marijuana businesses from operating within their boundaries.
Patients who are medical cannabis patients will be allowed to grow up four plants for their own personal use instead of two under current law. They wouldn’t have to pay tax on medical marijuana products.
A new dispensary cannot be found within 500 feet from a school, childcare center, playground, recreation center, library, or public park. The distance between dispensaries must be at least 1,000 feet.
For existing medical cannabis businesses, the conversion fee to dual licensees would be 10% of gross income from processors and growers (with a cap of $2 million) and 8% of gross revenue for dispensaries with that cap.
A single business entity cannot own more than four dispensaries.
Minimum 25% of dispensary shelf space should be reserved for cannabis products licensed under social equity.
Microbusinesses would have a maximum of 10 licenses. However, language that allows regulators to authorize additional licenses in the future is not allowed.
Indoor smoking is not permitted at the on-site consumption facilities. However, smokers can smoke on licensed outdoor patios.
Dispensaries will be allowed to repackage items.
The rules for selling internet marijuana would have to be established by regulators by July 2025.
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The bills are emergency legislation and would be in effect immediately. They must be approved by three-fifths vote in each chamber to become law. The voter-approved referendum legalizes possession up to 1.5 ounces cannabis. This puts pressure on lawmakers to create regulations for commerce.
A spokesperson for Gov. Wes Moore (D), a spokesperson for Gov.
Partly, the bill is the result of extensive work by bipartisan and bicameral legislators who were part in House Cannabis Referendum and Legalization Workgroup which was established in 2021 by Speaker Adrienne Jones (D- ).
Following the approval by Maryland voters of a legalization referendum last year, members have been holding numerous meetings to discuss future regulations. This has triggered the implementation of complementary legislation that covers basic policies such as possession and low-level home cultivating.
The legislation will legalize the purchase and possession up to 1.5 ounces (for adults) of cannabis starting in the summer. It will also eliminate criminal penalties for possessing up to 2.5 ounces. Adults aged 21 or older can grow up to 2 plants for their own personal use, and may also gift cannabis to others without being paid.
All past convictions for conduct that was legalized under the law will be expunged. People currently serving sentences for such offenses are eligible for resentencement. People convicted of possession with intent to distribute may petition the courts for exoneration three years after they have served their sentence.
The referendum was implemented in parts at the start of the year. Possession up to 1.5 ounces or more of cannabis is now a civil offense. There’s a $100 penalty and a $250 penalty for possession of more than 1.5 ounces. 2.5 ounces and greater are subject to a $250 fine.
In the 2021 session, adult-use legalization was moving through Maryland’s legislature. However, no votes were ever held. A hearing was held by the Senate Finance Committee in on a legalization bill. This hearing followed a hearing by the House Judiciary Committee on a separate cannabis proposal.
In 2012, Maryland legalized medical marijuana through an act by the legislature. Two years later, Maryland legalized medical cannabis through an act of the legislature in 2012.
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The post Maryland Lawmakers Concile House and Senate Marijuana Sale Bills, Setting the Stage For Final Floor Action appeared originally on Marijuana Moment.
