Maryland Cannabis Processor regulations

CURE8 BLOG

Maryland Cannabis Processor Regulations 

Thinking about opening a cannabis business in Maryland? Great, but before jumping into the cannabis industry, it’s important to know the laws and regulations related to obtaining a processor license in your state. In this post, we’re going to discuss the basics of what you need to know about processing cannabis in Maryland. No complicated legal talk – just simple info to help you understand the ins and outs of getting into the cannabis processing sector in the state.  

Can I Apply for a Processor License Now in Maryland? 

Yes, Maryland’s accepting applications for processor licenses until December 12, 2023. The 30-day window kicked off on November 13, so make sure to get your application in before 5 pm (Pacific) to seize this opportunity. 

What are the Processor Licenses Allocation in Maryland? 

In the standard processors category, the administration has outlined plans for 32 licenses, while 24 licenses are designated for micro processors. 

What are the Processor Application Regulations? 
To secure a cannabis processor license in Maryland, applicants must fulfill certain criteria outlined by the state regulatory authorities. Here are the key requirements for the Maryland application process. 

  • Complete the application form provided by the MMCC. 
  • Provide details about the premises, security and quality control plans, inventory and waste disposal strategies, and employee training programs. 
  • Highlight any pertinent experience in laboratory, pharmaceutical manufacturing, or consumer products businesses. 
  • Compile essential documents, including lists of processor agents and investors, a comprehensive business plan, proof of capitalization, corporate documentation, and tax obligation status. 
  • Clearly outline the medical cannabis concentrates and products intended for manufacturing. 
  • Submit the application along with the required stage 1 application fee. 
  • Note that each applicant is eligible for a single processor license. 
  • Promptly update the application in case of any changes in investor information. 
  • Provide fingerprints and criminal history records for individuals involved in the application process. 
  • Ensure adherence to the Criminal Procedure Article, § 10-221(B)(7), Annotated Code of Maryland, to maintain compliance. 

What are the Cannabis Processor Premises Regulations? 

To operate and run a licensed processor facility legally in Maryland, you need to follow the below regulations:  

  • Facility must be located in the state  
  • Premises must adhere to local zoning rules Must display the processor license in the facility  
  • A licensed processor facility premises shall be secured in accordance with the regulations.  
  • Any enhancement, alternation or changes to licensed processor facility must be done with the approval of the Maryland Cannabis Administration. 

What are the Licenses Validity Regulations in Maryland? 

Generally, adult-use licenses boast a 5-year validity and are eligible for renewal within each successive 5-year period. 

What are the Transfer Restrictions on Adult-Use Licenses in Maryland? 

According to the Bill, the initial adult-use cannabis licenses, whether initially designed for adult-use or transformed from medical-use licenses, are subject to a non-transferability restriction for the initial 5 years. For converted license holders, there is no grace period or credit provided based on their prior involvement in medicinal operations. Each converted license functions independently on a unique 5-year timeline, starting from the approval date for commencing integrated medical and adult-use operations. 

Further details regarding ownership and change of control applications will be outlined in forthcoming regulations from the Division, ensuring transparency and compliance within the industry. 

What are the License Renewal Regulations in Maryland? 

If your license was converted under Alcoholic Beverages and Cannabis Article, §36-403, Maryland Code, it’s valid for 5 years from your initial conversion fee payment to the Administration. 

To keep your license, follow all guidance from the Administration posted on their website. 

Your cannabis license lasts for 5 years initially and can be renewed for another 5 years. 

The Administration notifies you 90 days before your license expires, providing renewal details. 

Submit your renewal application, fingerprints for key individuals, pass a premises inspection, and pay the renewal fee at least 30 days before expiration. 

If you meet renewal requirements, the Administration renews your license. 

If your renewal application has issues, you can apply for reinstatement by correcting deficiencies and amending the renewal application. 

License renewal may be denied if your correction plan is deficient, or you repeatedly violate health and safety regulations. 

What to do When You Miss the Renewal Deadline? 

In the unfortunate circumstance of missing your license renewal deadline, the immediate action is simple and straightforward. Firstly, stop all operations promptly and, secondly, refrain from providing cannabis to anyone under any condition. These steps are important not only to prevent potential penalties but also to ensure strict adherence to legal requirements. It’s a simple yet vital protocol to keep your cannabis operations on the right side of the law. 

How to Reinstate a Lapsed License in Maryland? 

In the scenario where your license has lapsed in Maryland, the process of reinstatement is straightforward. You can start the process by fulfilling the reinstatement fee requirement. And submit the reviewed reinstatement application to the Administration. By following these steps diligently, you can easily return to your cannabis operations.  

What are the Local Protective Measures in Maryland? 

The Bill incorporates safeguards to prevent undue advantages for cannabis operators at the local level. Local municipalities hosting Maryland cannabis operators are restricted from: 

Implementing an additional tax. 

Establishing zoning and requirements that excessively burden a cannabis licensee. 

Prohibiting transportation or deliveries within the jurisdiction by cannabis licensees from other areas. 

Interfering with the conversion of cannabis operators to a medical and adult-use licensee under the Bill. 

Engaging in host community agreements demanding financial contributions or services from cannabis licensees 

Conclusion: 

Undoubtedly, the cannabis industry presents a lucrative opportunity with substantial financial potential. However, it comes with a high level of regulation and rules. To ensure the smooth operation of your business and maintain good standing, it’s crucial to have a thorough understanding of Maryland’s cannabis processor regulations. Adhering to these regulations not only helps sustain your business efficiently but also ensures compliance, preventing any potential penalties. 

If you’ve any questions, feel free to reach out to our team of experts for any inquiries or assistance.  

Related Articles