Our licensing guide below provides a simple overview of how to win a cannabis dispensary business license in Maryland. Firstly, our Maryland dispensary consultants briefly detail the number of licenses available, then the relevant regulations, application requirements, fees, and the application process.
Cannabis Dispensary License in Maryland
Approved Activities
Firstly, a standard dispensary license allows you to operate a store at a physical location that sells cannabis or cannabis products.
A micro dispensary license authorizes you to operate a delivery service that sells cannabis or cannabis products without a physical storefront, provided the licensee employs not more than 10 employees.
Also, a micro license is limited to social equity applicants. Keep in mind, micro dispensary licenses are authorized to conduct deliveries only within the region in which they have been awarded.
Sale to medical patients and caregivers
Although a dispensary may sell both medical and recreational marijuana, certain products may only be sold to qualifying patients and registered caregivers:
- Concentrated cannabis products weighing more than 1 gram
- Edible cannabis products, capsules, and tinctures containing more than 10 mg THC per serving or 100 mg THC per package.
Sale to adult consumers
Additionally, licensed dispensaries may sell the following products to consumers:
- Cannabis vaporizing devices, of any product weight (e.g., vapes)
- Concentrated cannabis products with a total weight of 1 gram or less
- Infused pre-rolls of any product weight
- Infused non-edible cannabis products
- Home cultivation products (including clones, seeds, seedlings up to 8 inches tall and 8 inches wide, stalks, roots, and stems of the cannabis plant)
- Usable cannabis products (e.g., flower, pre-rolls)
- Edible cannabis products, capsules, and tinctures containing up to 10 mg THC per serving or 100 mg of THC per package
- Liquid edibles, one single container is a single serving, containing no more than 10 mg of THC.
Sale of hemp-derived products
Additionally, licensed dispensaries may sell hemp-derived products containing more than 0.5 mg THC per serving, or 2.5 mg THC per package only if they have been manufactured, processed, and tested in accordance with MCA regulations. These products may only be displayed or offered for sale in the service area of a dispensary.
Hemp-derived products with less than 0.5 mg THC per serving and 2.5 mg THC per package, as well as certain full spectrum hemp tinctures and hemp-derived products not intended for human ingestion or inhalation, such as lotions, balms, salves, or pt CBD products, may still be sold in the public zone of a dispensary.
Number of Maryland Cannabis Dispensary Licenses Available
For the next round, the MCA may issue up to 120 standard dispensary licenses. Unlike in the initial round, they will not issue micro licenses to dispensaries, unless they determine to do so later.
Licenses are awarded 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. If you should be awarded both, the MCA will require you to choose one over the other.
Relevant Regulations for Cannabis Dispensary 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 dispensary consultants suggest you examine MCA’s permanent regulations in full on COMAR online, as well as its rules which specifically address marijuana dispensary licensing in Maryland.
Thirdly, familiarize yourself with MCA’s guidance regarding 2024 operational changes for licensed dispensaries.
Now, let’s review the application requirements. The full application requires hours of work and careful document planning, but reach out to our Maryland dispensary license consultants. We’ve done it before, and we can help you too!
Application Requirements for Maryland Cannabis Dispensary 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 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 for Dispensary License in Maryland
The non-refundable application fees for new standard dispensary licenses are as follows:
- $5,000 – Standard dispensary license
- $1,000 – Micro license (if the MCA chooses to offer this type for dispensary licenses in the next round)
The licensing fees (for initial licensure or renewal) for a dispensary are as follows:
- Standard dispensary license – $25,000
- Micro dispensary 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 Dispensary License in Maryland
Applying for a Maryland cannabis dispensary license involves a structured and detailed process. Below is a step-by-step guide from our Maryland cannabis consultants to 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 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 Maryland dispensaries. 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 dispensary 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 dispensary 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 dispensary application fee as follows:
- Standard dispensary license: $5,000
- Micro dispensary 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.
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 dispensing 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 business.
Closing Remarks from our Maryland Dispensary Consultants
Securing a cannabis dispensary 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 dispensary in Maryland!
