Would you like to know how to win a cannabis processor business license in Maryland? In the processor license application guide below, our Maryland cannabis processor consultants briefly detail the licenses available, then the relevant regulations, application requirements, fees, and the application process.
Cannabis Processor License in Maryland
Approved Activities
Firstly, for both types of Maryland marijuana processor licenses, standard and micro, the licensed processor may not sell cannabis directly to consumers.
Below, our Maryland cannabis processing license consultants provide a breakdown on the expected allowed activities for the next licensing round.
- Standard processor license – permits a licensed individual or entity the following activities:
- purchase cannabis from other legal licensees,
- process raw cannabis into a variety of finished cannabis products such as oils, tinctures, edibles, liquid edibles, and concentrates,
- engage in the manufacturing, packaging, labeling, and/or storage of cannabis, and
- sell cannabis to other licensed cannabis processors, retailers, and/or wholesalers.
- Micro processor license – limited to social equity applicants and allows the licensee to:
- process raw cannabis into another product or an extract and package and label the cannabis product,
- provide cannabis to licensed dispensaries and independent testing laboratories.
Secondly, effective April 25, 2024, a micro processor licensee may now process up to 2,000 pounds of cannabis per year.
Furthermore, for both types of licenses, the MCA allows the following types of products and manufacturing, but only to licensed facilities possessing a valid edibles permit, as well as other appropriate permits:
- Liquid Edibles – For the purposes of producing a liquid edible product:
- one single container is a single serving of product, and it may not contain more than 10 milligrams (mg) of tetrahydrocannabinol (THC).
- must also comply with the requirements for other edible products in terms of production, packaging, and labeling.
- Hemp – Licensed processors may obtain hemp and hemp-derived products from registered hemp growers.
Next, let’s look at the number of licenses expected to be available in the next round.
Number of Maryland Cannabis Processor Licenses Available
For the next round, the MCA may issue up to 25 standard and 70 micro licenses. The MCA is still evaluating the initial rounds of licenses in its Phase 2 evaluation for conditional licensing. However, once the MCA awards those final licenses from the first rounds, they will release a new round, awarding processor licenses within specified regions with an allotted number of licenses.
You can only submit one application per license type, but you can apply for up to two license types per round (for example, grower and processor). If you should be awarded both in the lottery, the MCA will require you to choose one.
Relevant Regulations for Cannabis Processor Licenses in Maryland
Firstly, 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. Thirdly, review Title 36 Medical and Adult-Use Cannabis (§§ 36-201 — 36-1507).
Secondly, the Maryland Cannabis Administration (MCA) regulates Maryland’s medical and adult-use cannabis industry. Our Maryland processor consultants suggest you examine MCA’s permanent regulations in full on COMAR online, as well as its rules which specifically address marijuana processor licensing in Maryland.
Thirdly, familiarize yourself with MCA’s guidance regarding 2024 operational changes for licensed processors.
Now, let’s review the application requirements. The full application requires hours of work and careful document planning, but reach out to our Maryland processor license consultants. We’ve done it before, and we can help you too!
Application Requirements for Maryland Cannabis Processor License
Firstly, the MCA is required by law to hold a Pass/Fail evaluation of the applications. To be entered into the lottery, your application must pass the following minimum qualifications:
- A detailed operational plan for the safe, secure, and effective processing 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. Our Maryland cannabis processor license consultants advise you to review the processor-specific operating regulations within MCA’s current permanent regulations, updated at the beginning of each calendar month: Cannabis Processor Operations.
Engage our cannabis consultants and we can make the process simpler for you to win your license and start processing marijuana into safe products in Maryland!
Fees for Processor License in Maryland
The non-refundable application fees for the next round of auslt-use cannabis processor licenses are currently set as follows:
- $5,000 – Standard processor license
- $1,000 – Micro processor license
The licensing fees (for initial licensure or renewal) for a processor are as follows:
- Standard processor license – $25,000
- Micro processor licenses – $10,000
Licensing is valid for five years, and the licensee may pay the renewal fee in annual installments.
How to Apply for a Cannabis Processor License in Maryland
Applying for a Maryland cannabis processor license involves a structured and detailed process. Below is a step-by-step guide from our Maryland cannabis processor consultants help you navigate the application process effectively.
Step 1. Understand Eligibility Requirements
Before starting the application, ensure you understand the eligibility requirements for the type of license you are applying for, whether it’s an Open Standard License or a Social Equity License.
Ensure your business structure, ownership, and location align with Maryland cannabis administration regulations.
Step 2. Prepare Required Documentation
Once you’ve determined your eligibility, you must prepare the following required documents:
- Operational Plan (Application Attachment A),
- Business Plan (Application Attachment B),
- Detailed Diversity Plan (Application Attachment C),
- Attestations, including operational agreements, and ownership forms,
- A complete and cleared social equity verification report from Creative Services, Inc. (if applicable), and more.
Coupled with the requirement for these plans, you must ensure they comply with all the laws and regulations for a Maryland marijuana processor license. If your plans fail to meet the requirements, the MCA will not enter your application into the lottery. You will need to wait for the next round.
Next, let’s look at the MCA-Provided Template requirements.
Step 3. Utilize MCA Templates
In addition, MCA provides specific templates for various parts of the application. It’s essential to use their forms to ensure your submission meets the required format and content standards for online submission. Our Maryland cannabis processor consultants emphasize that you prepare by reviewing the MCA Application Evaluation which details evaluation metrics, and the criteria for either passing or failing.
Step 4. Online Submission
Firstly, be sure to register for a OneStop account. You must submit your Maryland cannabis processor license application through the Maryland OneStop portal. The application process is entirely online through the portal. Log in to submit your application. Ensure that you’ve completed all fields and that you upload all documents and attachments in the specified format.
Step 5. Pay Application Fees
As part of your submission, MCA requires you to pay the non-refundable processor application fee as follows:
- Standard cannabis processor license: $5,000
- Micro cannabis processor license: $1,000
Payment must be made online through the portal during the submission process.
Step 6. Review and Submit
Before submitting your application, carefully review all your documents to ensure accuracy and completeness. Once submitted, applications cannot be edited or withdrawn.
Step 7. Pass/Fail Review
After submission, the MCA will review your application on a pass/fail basis to determine if it meets the minimum requirements. As stated above, make sure that you have reviewed the MCA Application Evaluation before you submit your forms. It details the evaluation metrics and the criteria for either passing or failing. Engage our Maryland cannabis consultants to help you prepare your application materials!
Step 8. Lottery Selection
If you pass the initial review, the MCA will enter your application into the lottery system, composed of distinct lottery pools organized by geographic region, city, or county, and also based on population. The lottery system then randomly selects applicants from these pools for MCA to consider them for conditionally awarded licenses.
Step 9. Further Communication and Priority Actions
If the lottery selects your application, the MCA will investigate and verify all aspects of your application and may issue you further instructions for additional materials. You must provide these requirements within ten calendar days.
After you submit the requested information, MCA will conduct follow-up investigations. If all information is verified, they will issue a Conditional License. However, the Conditional License does not permit you to begin processing cannabis but instead initiates an 18-month clock to secure a final license.
Step 10. Supplemental Application and Awaiting Final Approval
During this Conditional License period, the MCA will require the licensee to complete a supplemental application, which includes:
- criminal history record check,
- financial background check,
- disclosures related to other business licenses, and
- authorizations for MCA to request information from other jurisdictions regarding your cannabis business license application(s).
Equally important, you will need to establish, identify, and demonstrate site control for your proposed cannabis processor business.
Closing Remarks from our Maryland Cannabis Processor Consultants
Securing a cannabis processor license in Maryland can be a complex process, but it offers a significant opportunity for businesses to enter its lucrative cannabis market. When you follow the outlined steps and ensure compliance with all requirements, you will position your business for success.
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 together. Contact our cannabis consulting firm to customize the right business license strategy for your marijuana processing facility in Maryland. We can make it simple for you.
