Maryland regulators are proposing major changes to the state’s cannabis rules, with a key focus on extending deadlines for conditional licensees. Under the new proposal, conditional license holders would have 24 months instead of 18 to become operational, giving businesses—especially social equity applicants—more time to navigate construction, financing, and zoning challenges.
The proposal, filed with the state’s Administrative, Executive, and Legislative Review (AELR) Committee on Oct. 10, also strengthens oversight across growers, processors and dispensaries. Growers and processors would face tighter contamination controls, including requirements to investigate root causes of failed tests, decontaminate facilities and implement corrective action plans. Processors would need MCA approval before accepting hemp-derived products to prevent unregulated cannabinoids from entering the supply chain.
Dispensaries could expand operations with drive-through or walk-up windows, provided strict security and surveillance rules are followed. Micro dispensaries would see enhanced recordkeeping requirements, including GPS tracking of delivery vehicles and video monitoring with customer consent. Up to three licensed operators could co-locate at a single facility, potentially reducing costs for smaller businesses.
The MCA also proposes cutting fees for agents and labs, lowering agent registration from $50 to $25 every two years and independent lab registration from $5,000 to $500. Academic and research applicants would see similar reductions. Responsible vendor training would now be required within 90 days of hire and annually thereafter, and the MCA could disqualify or revoke agents for prior violations or moral turpitude convictions.
A new “Pilot Authority” would allow the MCA to test regulatory innovations, ensuring that data collected through pilot programs could not be used for enforcement. Strict data protection and cybersecurity standards would apply to all pilot program data.
The proposed regulations are still pending AELR review and will open for public comment once published in the Maryland Register. Businesses and stakeholders can read the full proposal and submit feedback at cannabis.maryland.gov/Pages/law.
