The Maryland Medical Marijuana Commission has released proposed regulations for Medical Marijuana Grower Maryland licenses.
These are the proposed regulations for Medical Marijuana Grower in Maryland as of February 7, 2015 and are subject to change. These regulations have yet to be approved and anyone interested in being a medical marijuana grower in Maryland should consult a Maryland lawyer or more information.
Medical Marijuana Grower Maryland Regulations
10.62.06 Medical Marijuana Grower Maryland License
Authority: Health General Article, §§13-3302, 13-3309, and 13-3312, Annotated Code of Maryland
.01 Definitions.
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) “Audited financial statement” means an audited financial statement that is:
(a) Performed by a certified public accountant licensed or with practice privileges in Maryland pursuant to Business Occupations and Professions Article, Title 2, Annotated Code of Maryland; (b) Prepared in accordance with the Professional Standards of the American Institute of Certified Public Accountants; and
(b) 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 before the submission of an application for a license under this subtitle by certified public accountant licensed or with practice privileges in Maryland pursuant to Business Occupations and Professions Article, Title 2, Annotated Code of Maryland, 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 grower.
(4) “Licensee” means a licensed grower.
.02 Application for a Medical Marijuana Grower License.
A. An applicant shall submit an application for a license in a manner determined by the Commission.
B. An application shall include:
(1) Identification of applicant’s potential medical marijuana grower agents and 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) Details of the applicant’s experience, knowledge, and training in commercial horticultural or agronomic production;
(9) The medical marijuana varieties proposed to be grown with proposed cannabinoid profiles and evidence of success in alleviating symptoms of specific diseases or conditions;
(10) A plan for quality control;
(11) A plan for inventorying, safekeeping and tracking:
(a) Medical marijuana from “seed to sale,” and
(b) Waste plant material prior to destruction; and
(12) A disposal plan for medical marijuana waste.
C. A grower planning to operate as a dispensary of medical marijuana shall submit a dispensary application.
D. The application shall be accompanied by the stage 1 application fee specified in COMAR 10.62.28.
E. Any party applying for a license shall have an interest in only one license application.
F. 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 Criminal History Record Check.
For each individual identified in the application specified in Regulation .02B(1) of this chapter, an applicant shall provide to the Director of the Central Repository:
A. 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 section 10-221(B)(7) of the Criminal Procedure article for access to State criminal history and records for each medical marijuana grower agent and investor identified in the application; and
B. A request that the individual’s state and national criminal history record information be forwarded to the Commission.
.04 Consent for Investigation.
A. 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.
B. 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.
.05 Application Review.
A. The burden of proving an applicant’s qualifications rests on the applicant.
B. The Commission may deny an application that contains a misstatement, omission, misrepresentation, or untruth.
C. An application shall be complete in every material detail.
D. The Commission may request any additional information the Commission determines is necessary to process and fully investigate an application.
E. The applicant shall provide requested additional information by the close of business of the 14th business day after the request has been received by the applicant.
F. If the applicant does not provide the requested information within 14 business days, the Commission may consider the application to be suspended.
G. An application is not complete until the Commission receives:
(1) The criminal history record information required in Regulation .03 of this chapter; and
(2) Any required or requested attachment or supplemental information.
H. The Commission, or a Commission approved third party, shall review completed applications for a license and rank the applications using an impartial and numerically scored competitive bidding process developed by the Commission based on the following criteria:
(1) The proposed location in an agricultural zone;
(2) Racial, ethnic, and geographic diversity;
(3) Status as a Minority Business Enterprise, as defined in State Finance and Procurement Article, §14-301, Annotated Code of Maryland;
(4) Status as a veteran or military spouse, as defined in Health Occupations Article, §1-701, Annotated Code of Maryland;
(5) Quality of proposed safety and security procedures;
(6) The medical marijuana varieties proposed to be grown with proposed cannabinoid profiles, including varieties with high cannabidiol content, and evidence of success in alleviating symptoms of specific diseases or conditions;
(7) Quality of the plan to grow, cure, process and package medical marijuana;
(8) Quality of experience, knowledge, and training in commercial horticultural or agricultural production;
(9) Quality of quality control plan;
(10) Quality of inventory control plan;
(11) Quality of medical marijuana waste disposal plan;
(12) Quality of plan to enforce the alcohol and drug free workplace policy;
(13) Quality of the business plan;
(14) Demonstration of adequate capitalization;
(15) Maryland residency; and
(16) If applicable, history of payment of income taxes in Maryland and other jurisdictions.
.06 Pre-Approval of Application.
A. Limitation on number of licenses:
(1) Until May 31, 2016, in accordance with Health General Article, §13-3309(a)(2), Annotated Code of Maryland, in consideration of the ranking of the applications in accordance with regulation .04, the Commission may issue pre-approvals of a license up to a total of 15 licenses.
(2) Beginning June 1, 2016, the Commission may issue the number of pre-approvals of a license necessary to meet the demand for medical marijuana by qualifying patients in an affordable, accessible, secure and efficient manner.
B. 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 license shall be determined by public lottery.
C. The Commission may deny issuing a pre-approval of a license if, for any individual identified in the application specified in Regulation .02B(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.
D. Within 10 business days of the Commission’s decision, the Commission shall notify an applicant who has been pre-approved for a license.
E. The Commission may rescind pre-approval of a grower license if the grower is not operational within 1 year of pre-approval.
.07 Issuance of License.
A. 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
B. The Commission may issue a license either to grow medical marijuana or to grow medical marijuana and distribute it to qualifying patients and caregivers 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 .06 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 .06 of this chapter; and
(4) The first installment of the biennial license fee specified in COMAR 10.62.28 has been paid.
.08 Change of Ownership of License.
A. 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.
B. The Commission may deny transfer of an interest in a license if the criminal history record information or the background investigation demonstrates an absence of good moral character, or the payment of taxes due in any jurisdiction is in arrears, for any proposed transferee.
.09 Change of Location.
A. A licensee may apply to change the location of the licensee’s operation.
B. The application shall be made in a manner determined by the Commission and accompanied by the fee specified in COMAR 10.62.28.
C. A licensee may not begin cultivation or dispensing of medical marijuana at a new location until all inspections have been passed.
.10 Renewal of License.
A. A licensee is eligible to apply to renew a license every 2 years.
B. 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.
C. A licensee who fails to apply for renewal of a license by the date specified by the Commission:
(1) Shall cease operation of the premises;
(2) May not provide medical marijuana to any entity or person.
D. 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.
E. 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 medical marijuana grower 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.
F. The Commission shall renew a license that meets the requirements for renewal as stated in §E of this regulation.
G. 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.
H. 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.
