MarylandSB 02152025 Regular SessionSenateWALLET

Cannabis Reform - Revisions

Sponsored By: Sponsor information unavailable

Signed by Governor

CannabisAge -see also- Age of Maj; Children; Elderly; Inf&Tod.; etcBeverage ContainersBoundariesBuilding PermitsCannabis Administration, MarylandCannabis DistributionCannabis -see also- CannDist; CannProd; Smok&VapChemical TestsCivil Rights and Social EquityCounties -see also- Chartered Counties; Code Counties; etc.Electronic CommunicationElectronic GovernmentFees -see also- Attys' Fees; Devt Fees & TaxesFines -see also- Penalties and SentencesFood -see also- Meat, Poultry, & Seafood; Milk; etc.LabelingLicenses -see also- AB Lic; Certifications; DrLic; PermitsNoticesPenalties and Sentences -see also- Death PenaltyPermits -see also- Building PermitsRegistration -see also- Motor Vehicle RegistrationRetail SalesRules and RegulationsSafety -see also- Occupational SafetySales and Use TaxSpecial EventsTimeWeights and Measures

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 1 benefits, 4 costs, 3 mixed.

Medical cannabis deliveries continue through July 2026

Qualifying medical cannabis providers can continue deliveries through July 1, 2026. This covers converted dispensary licenses originally issued by the Natalie M. LaPrade Medical Cannabis Commission and that Commission’s registrants. The extension preserves delivery access for their patients.

Cannabinoid drinks lose food tax exemption

Qualifying cannabinoid drinks do not get Maryland’s food sales and use tax exemption. Buyers pay tax under the otherwise applicable rules. This provision does not set a tax rate or state how much extra buyers pay.

Cannabis owners face five-year transfer limits

Cannabis license holders generally cannot transfer ownership or control for at least five years after receiving a license. Time spent in preapproved license status does not count. Exceptions cover employee sales through a federally defined employee stock ownership plan. Other exceptions cover specified transfers tied to disability, incapacity, death, bankruptcy, receivership, court orders, or qualifying settlements.

Cannabis venues face local operating controls

Local governments can set operating hours for on-site cannabis consumption venues. The law does not set statewide hours. A venue must obtain all required local approvals before operating as a food service facility. These include applicable building and mechanical permits and a use and occupancy certificate.

Cannabis consumption license opportunities are limited

The law removes authorization to issue up to 15 on-site cannabis consumption licenses in the second licensing round. It also limits applications through the separate on-site licensing pathway to social equity applicants. Other applicants cannot use that pathway.

Cannabis venues get single-serving handling rules

Licensed on-site cannabis venues can buy products from cannabis licensees and repackage or process them into single servings for use there. Patrons can consume only cannabis obtained from that venue. Venues cannot allow cannabis products to leave the premises. They also cannot sell or give out products intended as more than one serving.

Cannabis businesses face zoning and distance rules

Local zoning for dispensaries cannot be stricter than for licensed retail dealers; state distance rules apply without a local ordinance adopted before July 1, 2025. State rules require 500 feet from specified existing schools, child care facilities, playgrounds, recreation centers, libraries, parks, and worship sites. Dispensaries must be 1,000 feet apart; local governments can reduce state distances or increase spacing between dispensaries to one-half mile, but no farther. Licensed dispensaries operating before April 1, 2024, must receive a waiver. The law also limits local zoning restrictions on exclusively outdoor growers in agriculture-only zones and bars bans at premises properly zoned for outdoor cultivation by June 30, 2023.

Dispensaries must buy from social equity suppliers

Dispensaries must source at least 25% of their cannabis and cannabis products from social equity licensees. Those suppliers cannot share common ownership with the dispensary. The requirement applies as the Maryland Cannabis Administration determines that supply is available.

Sponsors & Cosponsors

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 132 • No: 50

House vote • 4/7/2025

Third Reading Passed

Yes: 101 • No: 37 • Other: 2

Senate vote • 3/17/2025