Would you like to win an on-site cannabis Maryland consumption lounge license? In the license application guide below, our Maryland cannabis consumption lounge license consultants briefly detail the license type, the relevant regulations, proposed changes, application requirements, fees, and process.
Cannabis Consumption Lounge License in Maryland
Firstly, under the Cannabis Reform Act, these licenses were not authorized under the first licensing round held in November 2023 but will be open to application and awarded in subsequent licensing rounds.
Approved Activities
The Maryland cannabis consumption lounge license authorizes the licensee to operate premises in which cannabis may be consumed. Similar to a social club, a cafe, or a bar, a consumption lounge is a permitted site where individuals can gather to smoke outdoors, vape, and/or consume cannabis and cannabis-infused products, in accordance with Alcoholic Beverages and Cannabis Article, §36-407, Annotated Code of Maryland.
An on-site cannabis consumption establishment in Maryland is authorized for the following activities:
- obtain cannabis and cannabis products from licensed growers, processors, and standard dispensaries, and
- offer adult consumers a variety of cannabis accessories and cannabis-infused products such as drinks.
Currently, a licensee may not cultivate, process, or add cannabis to food prepared or served on the premises. However, as required by the CRA, the MCA conducted extensive surveys and reviews of on-site consumption of cannabis and cannabis products in other states and countries.
Potential Changes in the Maryland Cannabis Consumption Lounge License
As a result of its reviews, the MCA recently released a Report on On-Site Consumption Establishments, summarizing the following:
- regulations and trade practices,
- authorizations and restrictions,
- operational procedures and controls, and
- training requirements and employee safeguards.
The report details the advantages and disadvantages of different business model frameworks and recommends several legislative and regulatory changes to help Maryland’s on-site consumption lounge licensees be viable. It also recommended allowing the sale and consumption of food and beverage products, whether pre-packaged, or prepared and served on the premises, as in the Cannabis Cafe and Independent Cannabis Lounge models. Stay tuned for these exciting changes!
Next, let’s review the number of consumption lounge licenses expected to become available in the next round.
Number of Maryland Cannabis Consumption Lounge Licenses Available
Under the statute, no consumption lounge licenses were authorized in the first licensing round but may be awarded in this next round, where the MCA may issue up to 15 Maryland cannabis on-site consumption lounge licenses. Stay tuned for the MCA release of applications announcement!
Once released, you’ll have 30 days to submit a compliant application to be included in the lottery. Contact our Maryland consumption lounge consultants to strategize for a winning consumption lounge application.
Relevant Regulations for On-site Cannabis Consumption Lounge Licenses in Maryland
Firstly, read H.B. 556 and S.B. 516. Both bills were cross-filed as the Cannabis Reform Act (CRA) 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.
Now, let’s review the application requirements. The full application requires hours of work and careful document planning. Engage our Maryland consumption lounge license consultants. We’ve won cannabis licenses for clients in over 33 states and we can help you win one too!
Application Requirements for a Maryland Cannabis Consumption Lounge License
Firstly, the law requires the MCA 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 consumption 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 consumption lounge license consultants advise you to review the consumption lounge-specific operating regulations within MCA’s current permanent regulations, updated at the beginning of each calendar month: Cannabis Processor Operations.
If you’d like to win an on-site cannabis consumption lounge license, contact our Maryland cannabis consultants. We can help you strategize and provide the necessary plans for local zoning, premises requirements, employee training, and additional requirements for the unique status of consumption lounge licenses.
Fees for a Cannabis Consumption Lounge License in Maryland
As of now, the application and licensing fees for Maryland’s cannabis consumption lounge licenses are set as follows:
- $5,000 – On-site consumption license application fee (non-refundable)
- $10,000 – On-site consumption licensing fee (initial licensure or renewal)
Licensing is valid for five years, and the licensee may pay the renewal fee in annual installments.
How to Apply for a Cannabis Consumption Lounge License in Maryland
Indeed, applying for a Maryland cannabis consumption lounge license involves a structured and detailed process. As a result, our Maryland cannabis consumption lounge consultants developed a step-by-step guide to help you successfully navigate the application process.
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 specific to a Maryland marijuana consumption lounge license. For example:
- Employee training, including that all employees complete annual responsible vendor training,
- Ensure that the display and consumption of cannabis or cannabis product is not visible from outside of the licensed premises,
- Educate consumers on the safe consumption of cannabis, including providing informational materials that meet the requirements established by the Cannabis Public Health Advisory Council.
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. Why wait? Only 15 cannabis consumption lounge licenses may be issued this next round – let our Maryland cannabis consultants help you win a consumption lounge license when they are first available!
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 consumption lounge consultants emphasize that you prepare by reviewing the MCA Application Evaluation which details evaluation metrics, and the criteria for passing or failing.
Step 4. Online Submission
Firstly, be sure to register for a OneStop account. You must submit your Maryland cannabis consumption lounge license application through the Maryland OneStop portal. The application process is entirely online through the portal. Log in to submit your application. Ensure you’ve completed all fields and uploaded all documents and attachments in the specified format.
Step 5. Pay Application Fees
Furthermore, the MCA requires you to pay the non-refundable cannabis consumption lounge application fee as follows:
- $5,000 – On-site consumption license application fee (non-refundable)
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 operate a cannabis consumption lounge as of yet but instead initiates an 18-month clock to secure a final license.
Step 10. Supplemental Application and Awaiting Final Approval
Finally, you’ve reached the Conditional License phase — congratulations! Next, 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 as well as if your county or municipality where your business is located has issued a permit or license for your cannabis consumption establishment (Alcoholic Beverages and Cannabis Article, §36-405, Annotated Code of Maryland).
Closing Remarks from our Maryland Cannabis Consumption Lounge Consultants
In closing, securing a cannabis consumption lounge license in Maryland can be a complex process, but it offers businesses a significant opportunity to enter the recreational market here. By following the outlined steps and ensuring compliance with all requirements, you will position your business for success.
Additionally, consider engaging our cannabis license application consultants — we have years of experience winning cannabis licenses in over 33 states and across the globe in 6 countries. Let’s discuss your cannabis business goals together. Contact our cannabis consulting firm to customize the right business license strategy for your marijuana consumption lounge in Maryland. We will make it simple for you.
