Becoming a cannabis processor is a crucial step in the cannabis supply chain, and securing a license for this role can be challenging and requires substantial paperwork. To increase your chances of success depends upon acquiring in-depth knowledge of cannabis regulations and provisions. Hence, it’s crucial to be well-prepared and understand the requirements to ensure you get the Maryland processor license on the first attempt.
In this post, we’ll guide you through the complex process of obtaining a cannabis processor license requirement in Maryland.
What is the Cannabis Processor License Application Timeline?
Following are the cannabis processor license application timeline.
- The 30-day license application window is open from November 13, 2023, to December 12, 2023
- The Social Equity Verification Portal closed on Nov. 7, 2023
- Submitting applications after December 12, 2023, 5 PM, won’t be accepted
How Many Processor Licenses Will Be Distributed by MCA?
- 32 Standard Processors
- 24 Micro Processors
What Does a Processor License Mean?
In Maryland, a cannabis processor license permits a licensed individual or entity to legally process cannabis and cannabis products within the state. Cannabis processor license also grants the ability to purchase cannabis and engage in the manufacturing, packaging, labeling, or storage of cannabis products legally. After obtaining the license, the person is authorized to sell cannabis to other cannabis processors, retailers, or wholesalers. However, they are not allowed to sell cannabis directly to consumers.
What are the Processor Application Requirements in Maryland?
When you’re starting your journey to obtain a processor license in Maryland, you need to follow the structured process with specific steps and requirements. Here are key pointers to keep in mind when applying for processor application requirements in Maryland.
- Submit a completed application form to the Commission.
- Include required documents: lists of processor agents and investors, detailed business plan, evidence of capitalization, corporate documentation, and tax obligation status.
- Provide premises details, security and quality control plans, inventory and waste disposal plans, and employee training plans.
- Include details of relevant experience in laboratory, pharmaceutical manufacturing, or consumer products business.
- Specify the medical cannabis concentrates and products proposed to be manufactured.
- Accompany the application with the stage 1 application fee.
- An applicant can only apply for one processor license.
- Amend the application promptly for any changes in investor information.
- Provide fingerprints and criminal history records for individuals involved in the application.
- Ensure compliance with Criminal Procedure Article, § 10-221(B)(7), Annotated Code of Maryland.
How Much Does It Cost?
When you’re planning to apply for a cannabis license, there are different fees based on the type of license. For the standard license, there’s a $5,000 application fee, an additional $50,000 when you get the license, and a renewal fee of either $50,000 or 10% of your yearly earnings, whichever is less. If you’re applying for a micro license, the application fee is $1,000. Social Equity Licenses and micro licenses get a 50% or more reduction in fees, making it more affordable for certain applicants. It’s important to understand these fees to plan your budget properly when entering the cannabis industry.
What are Cannabis Processor Application Submission Requirements?
Ensure a seamless cannabis processor application submission by diligently following all necessary steps to secure your license on the initial attempt.
- Submit a completed application form to the Commission before the deadline.
- Include required documents such as lists of processor agents and investors, detailed business plan, evidence of capitalization, corporate documentation, tax obligation status
- Provide premises details which include security and quality control plans, inventory and waste disposal plans, and employee training plans.
- Provide details of relevant experience in the laboratory, pharmaceutical manufacturing, or consumer products business.
- Specify the medical cannabis concentrates and products proposed to be manufactured.
- Apply with the stage 1 application fee.
- An applicant can only apply for one processor license.
- Provide fingerprints and criminal history records for individuals involved in the application.
- Ensure compliance with Criminal Procedure Article, § 10-221(B)(7), Annotated Code of Maryland.
What is the Application Review Process?
- The burden of proving qualifications rests on the applicant. So, it is important to have the required documents to prove.
- The Commission may deny applications with misstatements, omissions, misrepresentations, or untruths.
- The Commission may request additional information for thorough processing and investigation that can include providing more documents or proof.
- Applicant must provide the requested information within 14 business days.
- Failure to provide the requested information within the specified timeframe may result in application suspension.
- The Commission aims to award licenses based on the best applications ensuring public safety and access to medical cannabis.
- Guidelines and detailed instructions for submitting the application form will be provided by the Commission.
- Applications will be reviewed and ranked based on weighted criteria, including operational factors, safety and security, experience in relevant industries, production control, business, and economic factors, and additional factors related to diversity and equity.
- Specific documentation is required to demonstrate equity and diversity efforts.
What are the General Cannabis Licensing Requirements?
The Commission may issue a license if:
- No conviction involving moral turpitude for the applicant.
- Successful completion of all inspections and adherence to application specifications.
- The proposed premises are under legal control, comply with zoning requirements, and align with pre-approved specifications.
- Payment of the first year’s license fee specified in COMAR 10.62.35 has been made.
What are the Cannabis Processor License Renewal Requirements?
Before you can keep running your cannabis processing business, you need to meet certain renewal requirements. These are rules set by the licensing authority, and you have to follow them to make sure your Cannabis Processor License stays valid.
- Initial license validity: 6 years; Renewal: 4 years.
- Commission notification 90 days before expiration.
- Submission required at least 30 days before expiration:
- Renewal application provided by the Commission.
- Proof of submitted fingerprints for key personnel.
- Full inspection unless completed satisfactorily within 3 months before expiration.
- Payment of specified fee (COMAR 10.62.35).
- Commission renews compliant licenses.
- Reinstatement process for non-renewed licenses:
- Submission of a deficiency correction plan.
- Amendment of renewal application.
- The commission may decline renewal for deficiencies or repeated inspection failures.
- Cease operations for non-renewed licenses, reinstatement is possible with specified steps.
What is the Processor Change of Location Requirements?
Licensees have the option to request a change in their operating location in accordance with MCA guidelines. To ensure a smooth process, adhere to the following procedures:
- Submission of application to the Commission
- Inclusion of specified fee (COMAR 10.62.35)
- No operations at the new location until all inspections pass.
Conclusion:
When you’re entering into cannabis industry, it is important to familiarize yourself with the state’s laws and regulations surrounding the application for a processor license. If you have any doubt about the Maryland processor requirements and process, check out the detailed information on the official website of the MMCC.
Feel free to contact our team of experts for any further assistance you may need. Wishing you the best in your entrepreneurial pursuits!
