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Maryland Medical Cannabis License Solutions
On September 1, 2023, the Maryland Cannabis Administration and the Office of Social Equity announced essential steps for those looking to apply for a cannabis license in the state. The Office of Social Equity has released eligibility criteria for cannabis social equity, and the MCA is launching a Social Equity Verification Portal. How do I qualify as a social equity applicant? To qualify as a social equity applicant, one must meet specific criteria, including having at least 65% ownership and control held by individuals who meet the statutory definition of a social equity applicant. This definition includes living in or attending a public school in a disproportionately impacted area in Maryland, as identified by the Office of Social Equity. Only verified social equity applicants can apply for a standard or micro grower, processor, or dispensary licenses in the initial licensing round. Additional information can be found on the Office of Social Equity's website.
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Market Overview
In 2014, the state legislature passed Senate Bill 923 authorized access to Maryland medical cannabis. During the first phase of Maryland Medical Cannabis License applications in 2015, the Natalie M. LaPrade Maryland Medical Cannabis Commission accepted 1081 applications. Nearly three (3) years after the passage of Senate Bill 923, sales of medical marijuana through the state’s program did not begin until 2017. Maryland cannabis has totaled about $400M in cannabis sales through the end of 2021 and has the second highest share of flower sales in the state. Adult recreational legalization appears to be a top issue for Maryland cannabis lawmakers in 2022. Due to Maryland’s location, being in-between multiple highly populated metropolitan areas, Maryland’s cannabis program is attractive for prospective business owners for its central location within the North East.
Book a free consultation today to learn more about how Cannabis License Experts can assist you and your team on your path to entering and being licensed in the Maryland Cannabis market.
Book a free consultation today to learn more about how Cannabis License Experts can assist you and your team on your path to entering and being licensed in the Maryland Cannabis market.
Licensing Requirements, Timelines, and Licensing Processes
While the licensing process and timelines vary in the state, Maryland cannabis is currently not accepting applicants for any business types. The last application round closed in 2019 and many of the applicants awarded with licensure are still in the process of getting to the Maryland cannabis market. This previous round allowed for 14 Maryland cannabis cultivation and processing facilities. In this application round over 150 applicants applied.
Oversight of licensing by the Maryland Medical Cannabis Commission.
Oversight of licensing by the Maryland Medical Cannabis Commission.
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Financial Requirements
Common for most jurisdictions as a mandatory component of the application is the requirement for a minimum amount of liquid cash on hand to ensure that applicants have the financial wherewithal from the licensing process through to the initial 2-5 years of operation.
| The MMCC has established the following fee schedule | |||
|---|---|---|---|
| Grower fees | Total Fee | Stage 1 | Stage 2 |
| Application fee | $6,000 | $2,000 | $4,000) |
| Annual license fee | $125,000 | ||
| Maryland Cannabis License as Grower and Dispensary | |||
| Application fee | $11,000 | $3,000 | $8,000 |
| Annual licensing fee | $165,000 | ||
| Maryland Cannabis Licensed Processor fees | |||
| Application fee | $6,000 | $2,000 | $4,000 |
| Annual license fee - | $40,000 | ||
| Maryland Cannabis Licensed Dispensary fees | |||
| Application fee | $5,000 | $1,000 | $4,000 |
| Annual license fee | $40,000 | ||
| Maryland Cannabis Independent Testing Laboratory fees | |||
| Registration fee | $100 | ||
| Renewal fee | $100 | ||
| Maryland Cannabis Miscellaneous fees | |||
| Transfer of ownership of grower license, processor or dispensary license | $7,000 | ||
| Change in the location of grower, processor or dispensary premises | $7,000 | ||
| License reinstatement fee | $2,000 | ||
Maryland Cannabis License Types
Maryland Cannabis Licenses offered by the Maryland Medical Cannabis Commission to conduct operations include:
- Dispensary
- Cultivation
- Manufacturing/Processing
- Transportation
Note: Only Mayland Cannabis Cultivation and Processing licenses are available at this time.
| Total Number of Licenses: | Submitted | Approved |
|---|---|---|
| 1,000 | 132 | |
| Dispensary: | 811 | 102 |
| Cultivating: | 146 | 15 |
| Processing: | 124 | 15 |
| Basic Demographic Information | ||
| Resources include the US Census Bureau, City-Data.com, and any additional relevant resources. | ||
| Total # of Counties | 23 | |
| Total # of Cities | 157 cities, towns, and villages, and 164 special districts | |
| Population in 2019 | 5,93,490 | |
City of Baltimore
36
Median Age
$55K
Medial Income
$175K
Median Home Price
$1090/Month
Fair Market Rent
Business Climate
Overall, the majority of the state has embraced the formal legalization of Maryland cannabis for both medical and recreational use. Although The ‘Old Line State’ sets a bar for technology and innovation, the cost of business and living as well as other economic indicators cause Maryland Cannabis to rank lower. Overall tax climate, the cost of doing business, minimum wage, and workers compensation burdens are among top considerations for potential operators. Specific to the Maryland cannabis industry, product sales grew over $140 million from 2018 to 2019 and patient count grew from 8,000 in 2017 to 70,000 in 2019.
Real Estate & Zoning
Consideration for regional and local zoning with regard to allowed proximity to certain business types, schools, and other prohibited areas. For example, the Baltimore County Council has set the zoning rules that govern where medical marijuana establishments are permitted. Maryland is also one of the easiest states to navigate regarding local city and county jurisdictions as they don’t have authority to prevent Maryland Cannabis medical marijuana usage.
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- Merger & Acquisitions
- Private Label Manufacturing
- Micro-Grow Franchising
- Human Resources
Frequently Asked Questions
What is commercial cannabis cultivation and processing?
Cannabis cultivation is the process of growing cannabis within a regulated environment for the consumption via a medical or adult-use cannabis program. Generally cultivation refers to the agricultural activities associated with the propagation and growing of cannabis. Cannabis processing is when you manufacture finished cannabis products, packaging of dried flowers or manufacture and package cannabis-based products (i.e. extracts, edibles, and topicals). To be able to produce cannabis and cannabis derived products commercially a specific license is required, requirements depend on the state in which you are locating this business.
How much will I need to spend for a cannabis cultivation license and facility?
The fees for a cannabis cultivation license vary greatly depending on the state in which the facility is to be located. Maryland’s cultivation license application fee is $6,000 and the annual licensing fee is $125,000. Also facility build out costs vary greatly depending on the type of cannabis cultivation facility (indoor, mixed-light green house, outdoor). Depending on the facility type a cultivation facility can range from 2 million to 20 million dollars.
Are edibles legal in Maryland?
Yes, edibles infused with THC are allowed through Maryland’s medical cannabis program and can be purchased by medical cannabis patients through licensed dispensaries. Maryland does require that all edible products are approved by its Medical Cannabis Commission before they can be distributed to retail dispensaries.
Can a licensed operator obtain additional facility licenses?
Maryland’s regulations governing medical cannabis do allow for one owner to have interest in more than one license or license type to a limitation. No person or entity can have interest or ownership in more than one cannabis cultivation license, one cannabis processor license, and four cannabis dispensary licenses.
Can licensed growers or processors sell their products outside of Maryland?
No, cannabis is federally illegal within the United States. While some states have medical or adult-use cannabis programs legalized within that state, the products manufactured and grown within a particular state must be distributed and sold within that state.
Don't Know Where To Begin? Get Started Now
Applying for a Maryland cannabis facility license and unsure where to start?
Maryland Cannabis license applications are not currently being accepted however as the state makes a push towards adult-use legalization this process will likely be revisited with the potential for additional Mayland Cannabis licensing coming down the line. Cannabis License Experts can help you to be prepared for this process by developing a preliminary business and feasibility plan to help give an understanding of business viability within the Maryland Cannabis climate.
In order to get started, reach out to one of our regulatory experts today to learn more about Cannabis Business Solutions.
