Maryland SB 221: Cannabis - Wholesaler License - Establishment

Bill Text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW. 
        [Brackets] indicate matter deleted from existing law. 
           *sb0221*   
  
SENATE BILL 221 
A3, C2   5lr0131 
  (PRE–FILED) CF HB 204 
By: Chair, Finance Committee (By Request – Maryland Cannabis Administration) 
Requested: October 7, 2024 
Introduced and read first time: January 8, 2025 
Assigned to: Finance 
 
A BILL ENTITLED 
 
AN ACT concerning 1 
 
Cannabis – Wholesaler License – Establishment  2 
 
FOR  the  purpose  of establishing a  wholesaler  cannabis  license; altering  a  certain  fee 3 
limitation; and generally relating to wholesaler cannabis licenses.  4 
 
BY repealing and reenacting, without amendments, 5 
 Article – Alcoholic Beverages and Cannabis  6 
 Section 36–101(a) and (jj) 7 
 Annotated Code of Maryland  8 
 (2024 Replacement Volume) 9 
 
BY adding to 10 
 Article – Alcoholic Beverages and Cannabis 11 
 Section 36–101(kk) and 36–412 12 
 Annotated Code of Maryland 13 
 (2024 Replacement Volume) 14 
 
BY repealing and reenacting, with amendments, 15 
 Article – Alcoholic Beverages and Cannabis  16 
 Section 36–101(kk), 36–401(d) and (e), 36–403(c) and (d), and 36–404(f) and (g)(1) 17 
 Annotated Code of Maryland  18 
 (2024 Replacement Volume) 19 
 
 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20 
That the Laws of Maryland read as follows: 21 
 
Article – Alcoholic Beverages and Cannabis 22 
 
36–101. 23 
 

2 SENATE BILL 221  
 
 
 (a) In this title the following words have the meanings indicated. 1 
 
 (jj) (1) “Usable cannabis” means the dried leaves and flowers of the cannabis 2 
plant. 3 
 
  (2) “Usable cannabis” does not include seedlings, seeds, stems, stalks, or 4 
roots of the plant or the weight of any noncannabis ingredients combined with cannabis, 5 
such as ingredients added to prepare a topical administration. 6 
 
 (KK) “WHOLESALER” MEANS AN ENTITY LICENSED UNDER THIS TITLE THAT 7 
IS   AUTHORIZED   BY   THE ADMINISTRATION   TO   ACQUIRE, PURCHASE, STORE, 8 
TRANSPORT, AND DISTRIBUTE CANNABIS OR CANNABIS PRODUCTS BETWEEN OTHER 9 
CANNABIS LICENSEES.  10 
 
 [(kk)] (LL) “Written certification” means a certification that: 11 
 
  (1) is issued by a certifying provider to a qualifying patient with whom the 12 
provider has a bona fide provider–patient relationship; 13 
 
  (2) includes a written statement certifying that, in the certifying provider’s 14 
professional opinion, after having completed an assessment of the patient’s medical history 15 
and current medical condition, the patient has a condition: 16 
 
   (i) that meets the inclusion criteria and does not meet the exclusion 17 
criteria of the certifying provider’s application; and 18 
 
   (ii) for  which  the  potential  benefits  of  the  medical  use  of  cannabis 19 
would likely outweigh the health risks for the patient; and 20 
 
  (3) may  include  a  written  statement  certifying  that,  in  the  certifying 21 
provider’s professional opinion, a 30–day supply of medical cannabis would be inadequate 22 
to meet the medical needs of the qualifying patient. 23 
 
36–401. 24 
 
 (d) The Administration may not issue more than the following number of licenses 25 
per type, including licenses converted under subsection (b)(1)(ii) of this section: 26 
 
  (1) for standard licenses: 27 
 
   (i) 75 grower licenses; 28 
 
   (ii) 100 processor licenses; and 29 
 
   (iii) 300 dispensary licenses; 30 
 
  (2) for micro licenses: 31 

 SENATE BILL 221 3 
 
 
 
   (i) 100 grower licenses; 1 
 
   (ii) 100 processor licenses; and 2 
 
   (iii) 10 dispensary licenses; 3 
 
  (3) for incubator space licenses, 10 licenses; [and] 4 
 
  (4) for on–site consumption licenses, 50 licenses; AND 5 
 
  (5) FOR WHOLESALER LICENSES, 15 LICENSES. 6 
 
 (e) (1) This  subsection  applies  to  all  licenses,  including  licenses  converted 7 
under subsection (b)(1)(ii) of this section. 8 
 
  (2) Subject  to  paragraph  (3)  of  this  subsection,  a  person  may  have  an 9 
ownership interest in or control of, including the power to manage and operate: 10 
 
   (i) for standard licenses and micro licenses: 11 
 
    1. one grower licensee; 12 
 
    2. one processor licensee; and 13 
 
    3. not more than four dispensary licensees; 14 
 
   (ii) for incubator space licenses, not more than two licensees; [and] 15 
 
   (iii) for  on–site  consumption  licenses,  not  more  than  two  licensees; 16 
AND 17 
 
   (IV) FOR WHOLESALER    LICENSES, NOT    MORE    THAN    ONE 18 
LICENSEE.  19 
 
  (3) (i) A person who owns or controls an incubator space licensee [or], 20 
an on–site consumption licensee, OR A WHOLESALER LICENSEE may not own or control 21 
any cannabis licensee listed under paragraph (2)(i) of this subsection. 22 
 
   (ii) The Administration shall adopt regulations limiting a person or 23 
fund  from  acquiring  a  nonmajority  ownership  interest  in  multiple  cannabis  businesses 24 
beyond the limitations established