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On September 8, 2023, the Maryland Cannabis Administration (MCA) announced that the first application cycle for cannabis business licenses will open on November 13, 2023 and run for 30 days, through December 12, 2023.  This first round for cannabis business licenses is exclusively for social equity applicants and represents the period of time in which a verified social equity applicant can submit their completed application to the MCA.

A Social Equity Applicant is an applicant who has at least 65 % ownership and control held by one or more individuals who have:

(1) Lived in a “disproportionately impacted area” for at least five of the past 10 years; or

(2) Attended a public school in a “disproportionately impacted area” for at least 5 years; or

(3) For at least 2 years, attended a 4-year institution of higher education in the State where at least 40% of the individuals who attend are eligible for a Pell Grant.

To be a verified Social Equity Applicant, an applicant must provide specific documentation depending on which criteria they fall under (see MCA – Acceptable Verification Documentation) and complete the following form: Cannabis Business License Interest Form.

The cannabis business license application has not yet been released.

In advance of the forthcoming application release, MCA recently opened the Social Equity Verification Portal, a prerequisite to the application process, on September 8, 2023.  This portal instructs prospective licensees on the social equity applicant eligibility requirements and allows them to confirm their social equity status before the application period opens on November 13, 2023.  The Social Equity Verification portal will remain open for a period of 60 days, closing on Tuesday, November 7, 2023.

Upon release of the application, a verified Social Equity Applicant who meets the cannabis business license application’s minimum requirements—to be graded on a pass/fail basis— will be placed in a randomized lottery.  The lottery will be based on license type (i.e., grower, processor, dispensary) and the county or region for which the application was submitted.  Under the Cannabis Reform Act, lottery selection will begin on or before January 1, 2024.

MCA released the total number of available licenses based on geographical area.

The total number of cannabis business licenses available during the first round are outlined below  and will be distributed throughout the State based on the license type and the geographical area.

Standard Dispensary License Distribution:

There are 75 standard dispensary licenses available.  The distribution of available licenses per county can be viewed HERE.

Standard Grower, Processor and Micro License Distribution:

For distribution of the remaining license types, MCA disclosed that the State will be divided into the following four regions:

1. Western Region: Allegany, Carroll, Frederick, Garrett, Montgomery and Washington counties
2. Southern Region: Anne Arundel, Calvert, Charles, Prince George’s and St. Mary’s counties
3. Central Region: Baltimore, Baltimore City, Cecil, Harford, and Howard counties.
4. Eastern Region: Caroline, Dorchester, Kent, Queen Anne’s, Somerset, Talbot, Wicomico and Worcester counties

Equal numbers of the remaining license types will be distributed throughout these geographic regions as indicated below:

See also MCA’s Distribution of Growers, Processors and Micro Licenses.

If you have any additional questions, please contact one of the attorneys in the Shulman Rogers Cannabis Industry Group.  For more details about the application process, please refer to MCA’s website HERE.

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The contents of this Alert are for informational purposes only and do not constitute legal advice. If you have any questions about this Alert, please contact the Shulman Rogers attorney with whom you regularly work or a member of the Shulman Rogers Cannabis Industry Group.

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