Maryland legalizes cannabis sales

The governor of Maryland signed the bill to regulate cannabis sales, paving the way for statewide legalization.

The governor said during the signing ceremony that the law «will ensure that the rollout of recreational cannabis in our state promotes opportunities equitably.».

«The criminalization of cannabis has deeply harmed low-income communities and communities of color,» he said. «We want to ensure that the legalization of cannabis profoundly benefits these communities.»

Today I signed bills into law concerning reproductive rights and equity in the cannabis industry.

Watch our remarks and the bill signing ceremony here: https://t.co/vOr4dUSOtn

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Watch the bill signing ceremony here: https://t.co/ShCRwMMhj0

— Governor Wes Moore (@GovWesMoore) May 3, 2023

State lawmakers worked quickly to enact legislation regulating cannabis before the legalization bill approved by the state's voters will not take effect until July.

Sales may begin as early as July 1 at existing medical cannabis dispensaries.

The Legalization of Cannabis in Maryland

Here are the main points of Maryland's cannabis regulations, which were enacted by lawmakers under the names of SB 516 and HB 556 :

• Cannabis will be taxed at a rate of 9 %. Sales of cannabis for medical purposes will be exempt from this tax.
• 35% in tax revenue will be allocated to a community reinvestment fund, the counties, a public health fund for cannabis, and a fund to support cannabis businesses
• A new independent agency, the Maryland Cannabis Administration, will be responsible for regulating the program
• Existing medical cannabis dispensaries will be converted to dual-license status when legalization takes effect on July 1, provided they have paid the required fee
• Regulators will need to begin approving additional cannabis operating licenses by July 1, 2024
• Ultimately, the number of licenses will be capped at 300 dispensaries, 100 processing companies, and 75 growers. For smaller micro-enterprises, the cap will be 10 dispensaries, 100 processors, and 100 growers.
• Applicants for the social equity category must be held at 65 % by individuals who have lived in disproportionately affected areas for at least five of the past ten years, have attended public school in such an area for at least five years, or meet other criteria based on a study of disparities
• A capital access program will be established under the auspices of the State Ministry of Commerce to promote industrial opportunities for social equity applicants and provide low-interest loans
• The legislation will put an end to the sale of Delta-8 products derived from hemp and will require that all psychoactive cannabis products be sold through licensed cannabis businesses
• Patients who use cannabis for medical purposes will be able to grow up to four plants for personal use, instead of two under current law
• Smoking will be prohibited inside establishments that serve food and drink for on-site consumption, but it will be permitted outside licensed establishments
• Regulators will be required to establish rules for the online sale of cannabis by July 2025