Maryland is legalizing weed – what you need to know

Another state has gone legal and is about to hopefully capitalize on a growing legal revenue stream and wipe out the black market and all the troubles surrounding the illegal side of the industry. Gov. Wes Moore of Maryland signed Senate Bill 516, which regulates the legal adult cannabis trade, after lawmakers sent it to him for approval in April. .

During the law signing ceremony, Moore stated that the new law would ensure the fair distribution of recreational cannabis adoption opportunities across the state. He acknowledged the damage done to low-income and black communities by past criminalization of marijuana.

He stressed the importance of ensuring that legalization of marijuana now benefits these communities in a significant way.

Maryland voters legalized cannabis in November

Question 4, a state referendum that received nearly two-thirds of the vote in November, legalized recreational marijuana in Maryland. The bill signed by Moore paved the way for this legalization to pass. It allows people over the age of 21 to possess a maximum of 1.5 ounces of cannabis and to grow up to two cannabis plants at home.

The passage of Senate Law 516 also creates a structure for regulating recreational marijuana in Maryland. The legislation provides for the formation of a new Regulation and Enforcement Division under the existing Alcohol and Tobacco Commission. The department is renamed the Alcohol, Tobacco and Cannabis Commission.

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As shared on the Cannabis.net website, below is a summary of Maryland’s cannabis regulatory statutes, which have been approved by the legislature as SB 516 and HB 556:

• Sales of recreational cannabis are subject to a 9% tax rate, while sales of medical marijuana are exempt from this tax.
• A municipal reinvestment fund receives 35% of marijuana tax revenue. A Cannabis Public Health Fund, Counties and a Cannabis Business Assistance Fund each receive an additional 5%.
• The newly formed Maryland Cannabis Administration will regulate the program.
• Existing medicinal cannabis dispensaries will become dual licensees after paying the required fee once legalization goes into effect on July 1.
• By July 1, 2024, regulators will begin approving additional licenses for marijuana businesses.
• Eventually there will be a license limit of 300 pharmacies, 100 processors and 75 producers. Smaller micro businesses have a limit of 100 farmers, 10 pharmacies and 100 processors.
• The State Department of Commerce will establish a Capital Access Program to encourage industry opportunities for social justice applicants and provide soft loans.
• Delta 8 hemp products will no longer be sold to the mainstream market and intoxicating cannabis products must be sold through licensed marijuana businesses.
• Municipalities cannot impose additional taxes or ban existing medical cannabis companies that transition to dual licensing from operating in their area.
• Medical cannabis patients can grow a maximum of four plants for personal use. You don’t have to pay taxes on medical marijuana products.
• New pharmacies will not be permitted within 500 feet of child care facilities, schools, playgrounds, libraries, recreation centers or public parks. They must also be at least 1,000 feet apart.
• The conversion fee for existing medical cannabis companies to become dual licensees is 10% of gross revenue for growers and processors, capped at $2 million, and 8% of gross revenue for dispensaries with the same cap.
• Under the new law, a single business entity cannot own more than four pharmacies.
• At least 25% of dispensary shelf space must be reserved for social justice licensee cannabis products.
• There will be a cap of 10 licenses for micro-enterprises and there are no provisions for regulators to approve more in the future.
• Indoor smoking is not permitted in on-site consumption facilities, but outdoor patios in licensed facilities are available for smoking.
• Pharmacies are allowed to repackage products under the new law.
• Regulators have until July 2025 to create rules for online marijuana sales.

New law includes provisions on social justice

The new Maryland law aims to promote equity in the cannabis industry and create ownership opportunities for those adversely affected by marijuana prohibition. The first licenses issued

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Applicant must be at least 65% owned by an individual who has lived in, or attended a public school in, a “disproportionately affected area” for five of the past ten years. How MSOs like Nature’s Medicines will work with social justice claimants in Maryland will be similar to how partnerships work in other states such as Massachusetts and the newly formed New York market.

Beginning in 2025, Maryland will provide $5 million annually in grants to existing medical cannabis dispensaries that form “meaningful partnerships” with social justice claimants. These partnerships must include training, mentoring, or shared business premises. This program encourages collaboration between established companies and social justice applicants to promote a more equitable and diverse cannabis industry.

The Democratic Del. CT Wilson said during a March committee hearing on Senate Bill 516 that the bill would create a new Social Justice Bureau within the Cannabis Division. Aiming to encourage the participation of individuals belonging to communities that have been disproportionately impacted by the War on Drugs.

The new law provides for the automatic overturning of previous convictions for activities that are now legal. Persons currently serving sentences for such offenses are eligible for re-sentencing. Persons convicted of distributive possession can apply for erasure three years after serving their sentence.

Parts of the referendum came into force at the beginning of the year. Possession of up to 1.5 ounces of cannabis was classified as a civil offense and punishable by a $100 fine. Possession of more than 1.5 ounces but less than 2.5 ounces increased the penalty to a $250 fine.

It seems Washington DC is being hemmed in by legal states. What will Congress do next?

We would like to thank Cannabis.net for their contribution to this article.