Regulators announce that Maryland's first adult-use marijuana license applications will open for social equity businesses in November.

Maryland officials announced on Monday that applications for adult-use cannabis dispensaries, cultivation and processing permits will be open for the first time in November. These licenses are reserved exclusively for social-equity businesses.

Maryland Cannabis Administration (MCA), announced on Friday, that it would accept 179 licensees after the 30-day application window, including 75 dispensaries and 16 growers, as well as 32 processors.

This will double the number in the state where only the existing medical marijuana dispensaries with dual licenses currently serve adult consumers.

This round of applications is designed to encourage diversity and stop large companies from dominating adult-use markets.

A person can’t be linked to more than one application for a license type. They are also restricted from submitting two or more applications in the same round.

MCA also stated that it “will never award licenses which would violate statutory restrictions on ownership or control.” This means people can apply both for standard licenses and micro licenses but they will only receive one. The state also prohibits applicants from receiving more than one license of the same type in different areas of the state.

Will Tilburg, MCA’s Acting Director said: “Today’s news is another step in Maryland’s efforts to build an inclusive and equitable cannabis industry.”

To learn more about the application round, visit https://t.co/OJ60KQmeqm pic.twitter.com/3BGnykTnl8

MD Cannabis (@MDCannabis August 8, 2023

Will Tilburg, MCA’s Acting Director, said in a Friday press release that “Today’s announcement is a step forward in Maryland’s commitment towards building an inclusive and equitable cannabis industry.” This application round will double the number cannabis businesses in Maryland, and each award is going to a verified social-equity applicant.

There are limits to the number of licenses that can be awarded in each region. For example, there are 11 licenses for standard dispensaries in Baltimore City compared with one in Worcester.

The announcement on Friday comes just days after MCA launched a new web portal that will enable people to check if they are eligible for a license to operate a marijuana business under the social equity program, before regulators start accepting applications.

Equity applicants are those who have owned at least 65 percent of their business by individuals who’ve resided in an “disproportionately affected area” (or designated “disproportionately impacted region”) for a minimum five years of the past ten. The applicant must have also attended a Maryland four-year school or a Maryland public high school for at least 5 years.

Maryland’s cannabis market is a hit since it opened in July. In August, the state had nearly $92 millions in marijuana sales. This is an increase over July’s receipts of $87 million. It was also more than twice the usual sales figures when the market only opened to medical patients.

The state Department of Commerce has started accepting grant applications from for $40 million to fund social equity.

The same fund has been used to provide grants to existing medical marijuana businesses to convert them into dual-licensed companies that can service the adult market.

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Andrew Garrison, MCA’s Andrew Garrison, said in July the state was uniquely ready for the implementation the marijuana legalization laws. This followed a deep study by lawmakers and the approval of a reform proposal at the ballot this year.

Garrison, who is a regulator, said that officials are actively working on “cleanup bills” to adjust the regulations. He expects the legislature to take up this bill during the next legislative session.

MCA will hold what it calls “limited town halls” to discuss permanent regulations with stakeholders, such as dispensaries and growers, patient advocates, and others. This process will include public comment periods when the draft rules are published.

A Maryland tax official said recently that that the state had found an unusual workaround to use Wells Fargo to avoid clearly identifying cannabis tax revenue on financial documents–a practice that proponents of marijuana prohibition are protesting. They have asked a federal prosecutor for an investigation.

A separate Maryland law took effect in July which prohibits police officers from searching based solely on the smell or possession of marijuana. Another law passed prohibits state officials from construing the responsible and lawful use of cannabis by parents or guardians as “neglect.”