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The Maryland Medical Marijuana Commission has released proposed regulations for Maryland Marijuana Dispensary licenses.

These are the proposed regulations for dispensing medical marijuana in Maryland as of February 7, 2015 and are subject to change.  These regulations have yet to be approved and anyone interested in seeking a Maryland Marijuana Dispensary License should consult a Maryland lawyer or more information.

Maryland Marijuana Dispensary Maryland Regulations

10.62.15 Licensed Dispensary and Licensed Processing Dispensary

Authority: Health General Article, §§13–3301 and 13–3310, Annotated Code of Maryland

.01 Definitions.

  1. In this chapter the following terms have the meanings indicated.
  2. Terms Defined.

(1) “Audited financial statement” means an audited financial statement that is performed by a certified public accountant licensed or with practice privileges in Maryland pursuant to Title 2 of the Business Occupations and Professions Code that is prepared in accordance with the Professional Standards of the American Institute of Certified Public Accountants and in the case of a publicly owned corporation in conformity with the standards of the Public Company Oversight Board.

(2) “Footnoted financial statement” means the presentation of information that includes

(a) In the case of an individual, a personal balance sheet as of the end of the year prior to the submission of an application for a license under this subtitle by certified public accountant licensed or with practice privileges in Maryland pursuant to Title 2 of the Business Occupations and Professions Code which contains a footnote that none of the assets included therein result from illegal activities; and

(b) In the case of a company or partnership, an audited financial statement which contains a footnote that none of the assets included therein result from illegal activities.

(3) “License” means a license issued by the Commission to operate as a licensed dispensary or a licensed processing dispensary.

(4) “Licensee” means a licensed dispensary or licensed processing dispensary.

.02 Application.

  1. An applicant shall submit an application for a license in a manner determined by the Commission.
  2. The application shall specify the applicant’s intent to operate as:

(1) A licensed dispensary to distribute medical marijuana to qualifying patients and caregivers;

(2) A licensed processing dispensary; or

(3) Both a licensed processing dispensary and a licensed dispensary.

  1. An application to be a licensed dispensary or licensed processing dispensary shall include:

(1) Identification of:

(a) The applicant’s potential dispensary agents; and

(b) Each individual investor with 5 percent or more of investment known at the time of application;

(2) A business plan including an organizational chart;

(3) Documentation and source of adequate capitalization;

(4) If the applicant is a corporation, a copy of the articles of incorporation and authorization to do business in Maryland;

(5) A record of tax payments in all jurisdictions in which an applicant has operated as a business for the 5 years before the filing of the application;

(6) A description of the proposed premises, including a preliminary site plan;

(7) A security plan;

(8) A plan for quality control;

(9) A plan for inventorying, safekeeping and tracking medical marijuana from entry into inventory to sale or disposal of medical marijuana waste;

(10) A plan for the disposal of medical marijuana waste; and

(11) A plan for training employees and volunteers.

  1. An application to operate as a licensed dispensary to distribute medical marijuana to qualifying patients and caregivers shall include:

(1) A plan for counseling qualifying patients and caregivers in the use of medical marijuana; and

(2) The medical marijuana varieties proposed to be dispensed with proposed cannabinoid profiles and evidence of success in alleviating symptoms of specific diseases or conditions.

  1. An application to operate as a licensed processing dispensary shall include:

(1) Details of the applicant’s experience, knowledge, and training in the operation of a laboratory; and

(2) A plan of the medical marijuana concentrates and medical marijuana-infused products proposed to be manufactured and the processes to be used.

  1. The application shall be accompanied by the stage 1 application fee specified in COMAR 10.62.28.
  2. Any party applying for a license shall have an interest in only one license application.
  3. An applicant has a continuing duty to amend an application within 3 business days to include the name and documentation of a request to forward the criminal history record information and footnoted financial statement to the Commission of a new individual investor of an interest of 5 percent or more, or another manager or director of the entity, even after a license is issued.

.03 Licensed Grower Acting as a Dispensary.

At a licensed grower premises or approved grower satellite premises, a licensed grower may dispense medical marijuana in conformity with this subtitle.

.04 Criminal History Record Request.

For each individual identified in the application specified in Regulation .02C(1) of this chapter, an applicant shall provide to the Director of the Central Repository:

  1. Two sets of legible fingerprints taken in a format approved by the Director of CJIS and the Director of the FBI and the fee authorized under Criminal Procedure Article, §10-221(B)(7), Annotated Code of Maryland, for access to State criminal history and records for each dispensary agent and investor identified in the application; and
  2. A request that the individual’s state and national criminal history record information be forwarded to the Commission.

.05 Consent for Investigation.

  1. An individual who is required to provide personal and background information under this chapter shall provide a statement that irrevocably gives consent to the Commission and persons authorized by the Commission to:

(1) Verify all information provided in the application documents; and

(2) Conduct a background investigation of the individual.

  1. An applicant shall authorize the Commission to have access to any and all information the applicant has provided to any other jurisdiction while seeking a similar license in that other jurisdiction, as well as the information obtained by that other jurisdiction during the course of any investigation it may have conducted regarding the applicant.

.06 Application Review.

  1. The burden of proving an applicant’s qualifications rests on the applicant.
  2. The Commission may deny an application that contains a misstatement, omission, misrepresentation, or untruth.
  3. An application shall be complete in every material detail.
  4. The Commission may request any additional information the Commission determines is necessary to process and fully investigate an application.
  5. The applicant shall provide additional requested information by the close of business of the 14th business day after the request has been received by the applicant.
  6. If the applicant does not provide the requested information within 14 business days, the Commission may consider the application to be suspended.
  7. An application is not complete until the Commission receives:

(1) The criminal history record information required in Regulation .04 of this chapter; and

(2) Any required or requested attachment or supplemental information.

  1. The Commission, or a Commission approved third party, shall:

(1) Review completed applications for a license to be a licensed dispensary; and

(2) Rank the applications using an impartial and numerically scored competitive bidding process developed by the Commission based on the following criteria:

(a) Racial, ethnic, and geographic diversity of the applicants;

(b) Status of the applicants as a Minority Business Enterprise, as defined in State Finance and Procurement Article, §14-301, Annotated Code of Maryland;

(c) Status of the applicants as a veteran or military spouse, as defined in Health Occupations Article, §1-701, Annotated Code of Maryland;

(d) Quality of proposed safety and security procedures;

(e) The medical marijuana varieties proposed to be dispensed with proposed cannabinoid profiles, including varieties with high cannabidiol content;

(f) Quality of the quality control plan;

(g) Quality of the inventory control plan;

(h) Quality of the plan to dispose of medical marijuana waste;

(i) Quality of the plan to dispense medical marijuana;

(j) Quality of the plan to counsel qualifying patients and caregivers in the use of medical marijuana;

(k) Quality of the plan to utilize the clinical director and to train dispensary agents;

(l) Quality of the plan to enforce the alcohol and drug free workplace policy;

(m) Quality of the business plan;

(n) Demonstration of adequate capitalization;

(o) Maryland residency of the applicant; and

(p) If applicable, history of payment of income taxes in Maryland and other jurisdictions.

  1. The Commission, or a Commission approved third party, shall:

(1) Review completed applications for a license to be a licensed processing dispensary; and

(2) Rank the applications using an impartial and numerically scored competitive bidding process developed by the Commission based on the following criteria:

(a) Racial, ethnic, and geographic diversity of the applicants;

(b) Status of the applicants as a Minority Business Enterprise, as defined in State Finance and Procurement Article, §14-301, Annotated Code of Maryland;

(c) Status of the applicants as a veteran or military spouse, as defined in Health Occupations Article, §1-701, Annotated Code of Maryland;

(d) Quality of proposed safety and security procedures;

(e) The medical marijuana concentrates and medical marijuana-infused products proposed to be manufactured with proposed cannabinoid profiles;

(f) Quality of the quality control plan;

(g) Quality of the inventory control plan;

(h) Quality of the plan to dispose of medical marijuana waste;

(i) Quality of the plan to process and package medical marijuana;

(j) Nature of applicant’s experience operating a laboratory;

(k) Quality of the plan to enforce the alcohol and drug free workplace policy;

(l) Quality of the business plan;

(m) Demonstration of adequate capitalization;

(n) Maryland residency of the applicant; and

(o) If applicable, history of payment of income taxes in Maryland and other jurisdictions.

.07 Pre-Approval of License Application.

  1. Number of Pre-approvals.

(1) In consideration of the ranking of the applications in accordance with Regulation .06, the Commission may issue pre-approvals of up to two licensed dispensaries, other than as a licensed processing dispensary that does not dispense medical marijuana to qualifying patients, per Senatorial district after taking into consideration the number of grower premises or grower satellite premises licensed to dispense medical marijuana located in the Senatorial district.

(2) The Commission shall pre-approve a number of licenses for licensed processing dispensaries sufficient to supply the demand for medical marijuana concentrates and medical marijuana-infused products in a range of routes of administration desired by qualifying patients.

  1. If there are more qualified applications than the number of licenses available and there is a numerical tie for the last license to be issued, the last pre-approved license shall be determined by public lottery.
  2. The Commission may deny issuing a pre-approval of a license if, for any individual identified in the application specified in Regulation .02C(1) of this chapter:

(1) The criminal history record information demonstrates an absence of good moral character; or

(2) The payment of taxes due in any jurisdiction is in arrears.

  1. Within 10 business days of the Commission’s decision, the Commission shall notify applicants who have been pre-approved for a license.

.08 Issuance of License.

  1. After an applicant has been issued a pre-approval for a license under this chapter the applicant shall submit to the Commission, as part of its application:

(1) A footnoted financial statement for each individual, partnership, corporation, or other entity review that has invested, or is proposed to invest, 5 percent or more of the capital of the applicant;

(2) Evidence of adequate surety bond and insurance; and

(3) Payment of the stage 2 application fee specified in COMAR 10.62.28.

  1. The Commission may issue a license either to be a licensed dispensary distributing directly to patients or to be a licensed processing dispensary on a determination that:

(1) The footnoted financial statement submitted regarding the applicant individuals and entities specified in Regulation .02C(1) of this chapter reveal no evidence that demonstrates the absence of good moral character;

(2) All inspections are passed and all of the applicant’s operations conform to the specifications of the application as pre-approved pursuant to Regulation .07 of this chapter;

(3) The proposed premises:

(a) Are under the legal control of the applicant;

(b) Comply with all zoning and planning requirements; and

(c) Conform to the specifications of the application as pre-approved pursuant to Regulation .07 of this chapter; and

(4) The first installment of the biennial license fee specified in COMAR 10.62.28 has been paid.

.09 Change of Ownership of License.

  1. No interest of 5 percent or more of a license issued pursuant to this chapter shall be assignable or transferable unless:

(1) The Commission has received notice in a manner determined by the Commission of the intent of the owner of the interest, or of the estate of the owner of the interest, to transfer or assign an interest in a license to another party;

(2) The transferee has had forwarded the criminal history record information and footnoted financial statement to the Commission of the transferee;

(3) The Commission does not object to the transfer or assignment within 180 business days of its receipt of notice; and

(4) The transferee has paid the required fee specified in COMAR 10.62.28.

  1. The Commission may deny transfer of an interest in a license if, for any proposed transferee:

(1) The criminal history record information or the background investigation demonstrates an absence of good moral character; or

(2) The payment of taxes due in any jurisdiction is in arrears.

.10 Change of Location.

  1. A licensee may apply to change the location of the licensee’s operation.
  2. The application shall be made in a manner determined by the Commission and accompanied by the fee as specified in COMAR 10.62.28.
  3. A licensee may not begin dispensing or processing medical marijuana at a new location until all inspections have been passed.

.11 Renewal of License.

  1. A licensee is eligible to apply to renew a license every 2 years.
  2. Ninety business days before the expiration of a license, the Commission shall notify the licensee of the:

(1) Date on which the license expires;

(2) Process and the fee required to renew the license; and

(3) Consequences of a failure to renew the license.

  1. A licensee who fails to apply for renewal of a license by the date specified by the Commission:

(1) Shall cease operations at all premises; and

(2) May not provide medical marijuana to any entity or person.

  1. A license may be reinstated upon:

(1) Payment of the fee specified in COMAR 10.62.28; and

(2) Submission of a reinstatement application approved by the Commission.

  1. At least 30 business days before a license expires a licensee shall submit:

(1) The renewal application as provided by the Commission;

(2) Proof that fingerprints have been submitted to CJIS and the FBI for every dispensary agent and investor of an interest of 5 percent or more;

(3) To full inspection of the operation, unless a full inspection was satisfactorily completed within 3 months before the date of the license expiration; and

(4) Payment of the fee specified in COMAR 10.62.28.

  1. The Commission shall renew a license that meets the requirements for renewal as stated in §E of this regulation.
  2. If the Commission does not renew a license due to a failed inspection or an inadequate application for renewal, the licensee may apply for reinstatement by:

(1) Submitting a plan to correct the deficiencies noted during an inspection; and

(2) Amending the application for renewal.

  1. The Commission may decline to renew a license if:

(1) The plan to correct deficiencies identified in an inspection is deficient;

(2) The amended application for renewal is deficient; or

(3) The licensee has repeatedly failed inspections.