Maryland Cannabis Consultants

Our Maryland cannabis consultants would like to help you enter the next round for adult-use cannabis business licenses in Maryland. Are you ready to get started? Schedule a consultation today with our expert Maryland cannabis consulting firm!

In the article below, we present a step-by-step guide to applying for and winning a Maryland marijuana business license. But first, let’s discuss the timelines, regulations, and governing bodies, and the application process. 

Maryland Cannabis Consulting

Timelines

On March 14 and June 28, 2024, the state held lotteries for the first social equity-only licensing round. Since then, the Maryland Cannabis Administration (MCA) has been vetting the selected applicants through Stage Two of the licensing process, which includes extensive background investigations and regulatory requirements for Conditional Licensing.

After they have concluded their evaluations, they will announce the next round, perhaps as early as this winter.

Regulatory Agency

Firstly, become familiar with the governing administrations for the new adult-use program:

1. The Maryland Cannabis Administration (MCA) regulates and administers medical and adult-use cannabis and licensing.
2. The Alcohol, Tobacco, and Cannabis Commission (ATCC) enforces cannabis laws and ensures compliance in the marketplace.

Laws & Regulations

Secondly, read H.B. 556 and S.B. 516. Both bills were cross-filed as the Cannabis Reform Act and published within Chapters 254 and 255 of the Maryland Code. Maryland’s adult-use cannabis industry is governed by this Cannabis Reform Act. The Act outlines everything from operational requirements to taxation and the license application process. Key points include strict regulations on safety, security, and social equity requirements to ensure a fair and inclusive market.

Next, review Title 36 Medical and Adult-Use Cannabis (Sections 36-201 — 36-1507). 

For even more detailed information regarding cannabis business licensing, review Title 36 Medical and Adult-Use Cannabis (§§ 36-201 — 36-1507). Maryland publishes and updates the MCA’s permanent regulations in full on COMAR online.

Now, let’s look at the types and numbers of licenses available.

Types of Adult-use Cannabis Business Licenses in Maryland

Below are descriptions of each type of Maryland cannabis business license and their authorized activities. Grower, processor, and dispensary licenses are available as standard and micro license options. However, all micro licenses are limited to social equity applicants.

• Grower License: Cultivate and package cannabis and provide cannabis to other authorized licensees, as well as independent testing laboratories.
• Processor License: Extract, manufacture, package, label, and store cannabis products; provide cannabis to licensed dispensaries and independent testing laboratories.
• Dispensary License: Sell cannabis or cannabis products by way of a standard license to operate a store at a physical location, or a micro dispensary license to operate a delivery service without a physical storefront.
• Incubator Space License: Operate a licensed premises in which micro licensees may operate a cannabis business, as well as purchase equipment for other incubator space licensees to use in the same incubator space.
• On-Site Consumption Lounge License: Operate a facility on the premises of which individuals can smoke outdoors, vape, and/or consume cannabis and cannabis-infused products.

License Application Requirements for Maryland

Next, our cannabis consultants in Maryland will discuss the minimum qualifications for cannabis business license applicants to qualify for entrance into the lottery.

Eligibility

Rounds 1 and 2 were limited to social equity applicants. Therefore, the next round should be open to all applicants who meet the minimum qualifications to apply to be entered into the lottery:

• Age: Applicants must be at least 21 years.
• Resident of Maryland: for at least two years before the application date.
• No convictions, or pleas of solo contendere, to crimes involving moral turpitude, as defined in the Cannabis Reform Act.
• If selected in the lottery and awarded a conditional license, applicant must undergo a criminal history records check, including fingerprinting.

Process

Licenses are awarded within specified regions with an allotted number of licenses. Each grower or processor license can be a “standard” or “micro” license. Regardless of type, all micro licenses are limited to social equity applicants. Keep in mind that micro dispensary licenses will only be authorized to conduct deliveries within the region in which they have been awarded.

You can only submit one application per license type, but you can apply for up to two license types per round. However, you may not hold multiple grower or processor licenses. Therefore, if you are selected in the lottery for both a micro and standard grower or processor, the MCA will ask you to select which one you will pursue.

Required Documents for Maryland Cannabis License Application

Applicants must meet the following minimum qualifications to be entered into the lottery:

• A detailed operational plan for the safe, secure, and effective cultivation, manufacture, and/or dispensing of cannabis.
• A business plan demonstrates sufficient business ability and experience, the likelihood of your success, and satisfactory and appropriate employee working conditions.
• A detailed diversity plan.

Additionally, you must receive a passing score on all three plans above to enter the lottery.

Fees

The non-refundable application fees for new adult-use cannabis business licenses are as follows:

• $5,000 – Standard licenses, on-site consumption license, or incubator space
• $1,000 – Micro licenses

The licensing fees for initial licensure or renewal are as follows.

Standard licenses:

• Grower – $50,000
• Processor – $25,000
• Dispensary – $25,000
• Incubator space – $10,000
• On-site consumption – $10,000

Micro licenses:

• Grower – $10,000
• Processor – $10,000
• Dispensary – $10,000

Licensing fees will be valid for five years, and the renewal fee may be paid annually in installments.

Next, let’s look at Social Equity applicants and the consideration of Disproportionately Impacted Areas in Maryland.

Social Equity Requirements & Provisions

MCA promotes participation by people from communities that have been disproportionately impacted by the war on drugs. Basically, for the purpose of cannabis businesses, the Maryland adult-use law defines social equity eligible applicants by the zip code of their residency.

For example, Maryland’s social equity criteria defines a disproportionately impacted area as having a 150% arrest rate for cannabis use compared to the normal rate of cannabis use arrests in other zip codes statewide. Additionally, Maryland defines a social equity priority applicant as having at least 65% ownership and control held by one or more individuals who:

• have lived in a disproportionately impacted area for at least 5 of the 10 years immediately preceding the submission of the application;
• attended a public school in a disproportionately impacted area for at least 5 years; or
• for at least 2 years, attended a 4-year institution of higher education in the state where at least 40% of the individuals who attend the institution of higher education are eligible for a Pell grant.

If you’re not certain about your eligibility, reach out to our Maryland cannabis consultants.

Set-by-Step Guide from our Cannabis Consultants in Maryland

Below, our Maryland cannabis consulting firm provides a step-by-step guide on how to win adult-use cannabis business licenses.

Step 1: Read the Laws and Regulations

Firstly, prepare to win a license in Maryland by reading its Laws and Regulations. Doing so will give you an overall idea of the goals and framework for the adult-use cannabis market in Maryland. Therefore, read House Bill 556 and Senate Bill 516.

Don’t have time to review hundreds of pages? We already have! Our cannabis business license application writers have submitted successful cannabis applications across the country and the world. That is why step 3 is to bring in our Maryland cannabis consultants. 

But before that, you should choose the type of Maryland adult-use cannabis license you will apply for.

Step 2: Choose a license type

Secondly, since you have read through the proposed regulations, you may know what type of cannabis activities you want to engage in. The MCA caps the number of licenses and divides them into two main categories – standard and micro. Choose the license type that fits your business model.

Step 3: Engage our Maryland cannabis consulting firm

Thirdly, allow our Maryland cannabis consulting firm to manage your project from pre-licensure to post-licensure and operational. We can manage all aspects of your application writing, including:

• Development of your cannabis business plan,
• Team recruitment,
• Facility design,
• Operational support, including Standard Operating Procedures for all activities,
• Employee training, and more.

We can help you set up your business from start to finish, including raising capital. For that, you need to form your business entity.

Step 4: Form a business entity

Next, form your business entity. If you are unsure what type would work best for your proposed operations, schedule a meeting with our Maryland cannabis consultants. Also, you may work with an attorney to choose the best structure for your business.

Furthermore, if you are applying as a social equity applicant, you must structure your business to fulfill the requirements and intention of Maryland’s Cannabis Reform law. Contact our cannabis consultanting firm for assistance!

Step 5: Build a team with the help of our Maryland cannabis consultants 

With our team talent acquisition services, you will be pleased with how we can help you put together the ideal team for your business license approval. Reach out today for more information about our personalized business application and consulting services.

Step 6: Develop a business plan

Step 7: Raise capital with the assistance of our Maryland cannabis consulting firm

First of all, winning a Maryland adult-use cannabis license will require a great deal of time and energy. It also requires start-up funds. Lottery decisions may make it sound like winning a license is a roll of the die, but first, you must position yourself to even be in the lottery! Make sure that your business shows it is financially viable to the MCA.

If you don’t have the capital necessary for a successful cannabis business, you might research Maryland cannabis loans and grants to fund your business. In addition, we’ll help you pitch your business to cannabis industry investors. In addition, our expert Maryland cannabis consultants will ensure that your business entity and its funding are compliant.

Next, we’ll discuss the importance of facility location.

Step 8: Choose a location

First, choosing a location in a disproportionately affected area is a consideration for social equity applicants. When seeking a location for your cannabis business, keep in mind that the MCA will issue dispensary licenses in a manner that encourages a balanced geographic distribution based on population and market demand within a specific county.

Also, the Administration will consider cross-jurisdictional market demand. Our cannabis business consultants can help you pursue the best location options, tailored to facilitate your business goals and cannabis activities.

Step 9: Garner local support with the help of our Maryland cannabis consulting firm

Once you’ve identified the property and your location, you can begin building support from local organizations. Strong local support will help you score higher on your merit-based application.

In addition, our Maryland cannabis consultants can help you build relationships with local businesses, state and community non-profits. Demonstrate how your cannabis business will support their efforts and positively impact your community. Show how you will be a good neighbor.

Now, on to the most important step to win a cannabis business license in Maryland!

Step 10: Write and submit an application

Lastly, it’s time to write and submit your application. As described above, to enter the lottery, you must submit:

• Diversity plan,
• Business plan, and
• Operational plans.

In addition, MCA provides specific templates for various parts of the application, which must all be submitted via the Onestop portal. It’s essential to use their forms to ensure your submission meets the required format and content standards for online submission. Prepare in advance by reviewing the MCA Application Evaluation which details evaluation metrics, and the criteria for passing or failing.

Our cannabis license application consultants have years of experience winning cannabis licenses in over 33 states and across the globe in 6 countries. Let’s discuss your marijuana business goals and find the right business license strategy for your activities!

Closing remarks from our Maryland cannabis consultants

To summarize, the application will require hundreds of hours of detailed writing and the development of formal operating procedures. Let’s discuss your marijuana business goals and find the right business license for your activities! Our Maryland cannabis consulting firm can help you write and assemble the entire application, saving you time and money.

Schedule a call with us today to discuss your Maryland adult-use cannabis business plans. Why not let us make it simple for you? With an experienced cannabis licensing team on your side, you can significantly improve your odds of winning a license!