summary
Introduced
02/03/2023
02/03/2023
In Committee
04/07/2023
04/07/2023
Crossed Over
03/10/2023
03/10/2023
Passed
04/08/2023
04/08/2023
Dead
Signed/Enacted/Adopted
05/03/2023
05/03/2023
Introduced Session
2023 Regular Session
Bill Summary
AN ACT concerning Cannabis Reform FOR the purpose of renaming the Alcohol and Tobacco Commission to be the Alcohol, Tobacco, and Cannabis Commission; establishing the Maryland Cannabis Administration as an independent unit of State government; establishing a regulatory and licensing system for adult-use cannabis under the Commission Administration; imposing the sales and use tax on the sale of adult-use cannabis at certain rates in certain fiscal years at a certain rate; establishing the Office of Social Equity, in the Maryland Cannabis Commission and the Advisory Board on Medical and Adult-Use Cannabis, and the Social Equity Partnership Grant Fund in the Commission; altering provisions of law relating to the Community Reinvestment and Repair Fund; establishing the Cannabis Regulation and Enforcement Division as an independent unit in the Commission; requiring the Division Administration to establish and maintain a State cannabis testing laboratory; establishing the Cannabis Regulation and Enforcement Fund as a special, nonlapsing fund; requiring that the investment earnings of the Cannabis Regulation and Enforcement Fund be credited to the Fund; repealing certain provisions of law establishing and governing the Natalie M. LaPrade Medical Cannabis Commission; requiring the Division Administration, rather than the Natalie M. LaPrade Medical Cannabis Commission, to take certain actions related to medical cannabis; requiring the Division Administration, on or before a certain date and under certain circumstances, to convert medical cannabis licenses to licenses to operate a medical and adult-use cannabis business; regulating the actions that local jurisdictions political subdivisions may take regarding cannabis businesses; prohibiting certain individuals from taking certain actions related to cannabis licensees and registrants; establishing the Medical Cannabis Compassionate Use Fund as a special, nonlapsing fund; requiring that the interest earnings of the Medical Cannabis Compassionate Use Fund be credited to the Fund; authorizing certain entities to register with the Division Administration to purchase cannabis for research purposes; establishing prohibitions related to the advertising of cannabis and cannabis products; requiring a person to be approved by the Division Administration to offer a certain training program; establishing certain legal protections related to the use of cannabis; establishing a Capital Access Program in the Department of Commerce; establishing certain prohibitions related to banking by cannabis businesses; altering certain provisions of law relating to the Cannabis Business Assistance Fund; exempting the Commission from State procurement requirements under certain circumstances; requiring a cannabis licensee, under certain circumstances, to comply with the State’s Minority Business Enterprise Program; requiring the Commission to contract with an independent consultant to complete a study on wholesale cannabis licenses; requiring the study to be submitted to certain persons on or before a certain date; requiring the Maryland Economic Development Corporation to identify certain locations and submit a certain report to the General Assembly; requiring the Commission to study and report on certain matters relating to on-site consumption and certain cannabis products; requiring the Administration to contract with an independent consultant to complete a study on wholesale cannabis licenses; requiring the study to be submitted to certain persons on or before a certain date; requiring the Maryland Economic Development Corporation to identify certain locations and submit a certain report to the General Assembly; requiring the Administration to study and report on certain matters relating to on-site consumption; requiring that certain growers be awarded certain dispensary licenses under certain circumstances; and generally relating to medical and adult-use cannabis. BY repealing Article - Health - General Section 13-3301 through 13-3316 and the subtitle “Subtitle 33. Natalie M. LaPrade Medical Cannabis Commission” Annotated Code of Maryland (2019 Replacement Volume and 2022 Supplement) BY repealing Article - Health - General The subtitle designation “Subtitle 46. Community Reinvestment and Repair Fund” immediately preceding Section 13-4601 Annotated Code of Maryland (2019 Replacement Volume and 2022 Supplement) (As enacted by Chapter 26 of the Acts of the General Assembly of 2022) BY transferring Article - Health - General Section 13-4601 Annotated Code of Maryland (2019 Replacement Volume and 2022 Supplement) (As enacted by Chapter 26 of the Acts of the General Assembly of 2022) to be Article - Alcoholic Beverages Section 1-322 Annotated Code of Maryland (2016 Volume and 2022 Supplement) BY renumbering Article - Alcoholic Beverages Section 1-101(d) through (y) and (z) through (ii) to be Section 1-101(e) through (z) and (bb) through (kk), respectively Annotated Code of Maryland (2016 Volume and 2022 Supplement) BY repealing and reenacting, without amendments, WES MOORE, Governor Article - Alcoholic Beverages Section 1-101(a) Annotated Code of Maryland (2016 Volume and 2022 Supplement) BY adding to Article - Alcoholic Beverages Section 1-101(d) and (aa), 1-309.1, 1-309.2, and 1-323; and 36-101 through 36-1507 to be under the new division “Division III. Cannabis” Annotated Code of Maryland (2016 Volume and 2022 Supplement) BY repealing and reenacting, with amendments, Article - Alcoholic Beverages Section 1-101(g) and (r) Annotated Code of Maryland (2016 Volume and 2022 Supplement) (As enacted by Section 4 of this Act) BY repealing and reenacting, with amendments, Article - Alcoholic Beverages Section 1-101(f) and (q) 1-202; and 1-302, 1-303(a), 1-304, 1-307 through 1-310, and 1-313 to be under the amended subtitle “Subtitle 3. Alcohol, Tobacco, and Cannabis Commission” Annotated Code of Maryland (2016 Volume and 2022 Supplement) BY adding to Article - Alcoholic Beverages Section 1-309.1, 1-309.2, and 1-323; and 36-101 through 36-1507 to be under the new division “Division III. Cannabis” Annotated Code of Maryland (2016 Volume and 2022 Supplement) BY repealing and reenacting, with amendments, Article - Alcoholic Beverages Section 1-322 Annotated Code of Maryland (2016 Volume and 2022 Supplement) (As enacted by Section 3 of this Act) BY adding to Article - Tax - General Section 2-1302.2, 11-104(k), and 11-245 Annotated Code of Maryland (2022 Replacement Volume) BY repealing and reenacting, with amendments, Article - Tax - General Section 2-1303 Annotated Code of Maryland (2022 Replacement Volume) BY repealing and reenacting, with amendments, Article - Economic Development Section 5-1901 Annotated Code of Maryland (2018 Replacement Volume and 2022 Supplement) BY repealing and reenacting, without amendments, Article - State Finance and Procurement Section 6-226(a)(2)(i) Annotated Code of Maryland (2021 Replacement Volume and 2022 Supplement) BY repealing and reenacting, with amendments, Article - State Finance and Procurement Section 6-201(e) and 6-226(a)(2)(ii)170. and 171. Annotated Code of Maryland (2021 Replacement Volume and 2022 Supplement) BY adding to Article - State Finance and Procurement Section 6-226(a)(2)(ii)172. and 173. Annotated Code of Maryland (2021 Replacement Volume and 2022 Supplement) BY repealing and reenacting, with amendments, Article - State Personnel and Pensions Section 23-201(a)(13) and (14) and 26-201(a)(22) Annotated Code of Maryland (2015 Replacement Volume and 2022 Supplement) BY adding to Article - State Personnel and Pensions Section 23-201(a)(15) Annotated Code of Maryland (2015 Replacement Volume and 2022 Supplement) BY repealing and reenacting, with amendments, Article - Health - General Section 13-4505 WES MOORE, Governor Annotated Code of Maryland (2019 Replacement Volume and 2022 Supplement) BY renaming Article - Alcoholic Beverages to be Article - Alcoholic Beverages and Cannabis Annotated Code of Maryland (2016 Volume and 2022 Supplement)
AI Summary
This bill, titled "Cannabis Reform", proposes to make significant changes to the regulation and oversight of the cannabis industry in Maryland. The key provisions include:
- Renaming the Alcohol and Tobacco Commission to be the Alcohol, Tobacco, and Cannabis Commission and establishing the Maryland Cannabis Administration as an independent state agency to regulate the cannabis industry.
- Creating a regulatory and licensing system for adult-use cannabis under the Cannabis Administration, including issuing various types of cannabis licenses (standard, micro, incubator, on-site consumption).
- Imposing sales and use tax on the sale of adult-use cannabis at rates that increase annually from 6% in FY 2024 to 10% in FY 2028 and beyond.
- Establishing the Office of Social Equity within the Cannabis Administration to promote participation by communities disproportionately impacted by the war on drugs, as well as the Social Equity Partnership Grant Program and the Community Reinvestment and Repair Fund.
- Repealing the Natalie M. LaPrade Medical Cannabis Commission and transferring its duties to the Cannabis Administration, which will regulate both medical and adult-use cannabis.
- Regulating actions that local jurisdictions can take regarding cannabis businesses, including prohibiting them from imposing certain taxes or fees.
- Establishing legal protections for those acting in compliance with the law, such as qualifying patients, cannabis licensees, and certifying providers.
- Creating a Capital Access Program in the Department of Commerce to provide financing assistance to social equity cannabis licensees.
- Prohibiting certain activities related to the banking and insurance of cannabis businesses.
- Requiring studies and reports on various aspects of the cannabis industry, including wholesale licensing, on-site consumption, and cannabis products.
The bill aims to establish a comprehensive regulatory framework for both medical and adult-use cannabis in Maryland.
Committee Categories
Budget and Finance, Business and Industry
Sponsors (2)
Last Action
Approved by the Governor - Chapter 254 (on 05/03/2023)
Bill Topics
Banking, Finance, and Domestic Commerce
- ‐ Banking System and Financial Institution Regulation and Reform
Civil Rights, Minority Issues, and Civil Liberties
- ‐ Ethnic Minority and Racial Group Discrimination
Health
- ‐ Regulation of Drug Industry and Pharmacies
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