Maryland Proposes Wide-Ranging New Marijuana Rules Covering License Renewals, Advertising, Training and Product Sales

Maryland cannabis regulators have released a broad package of proposed rule changes that would affect license renewals, ownership transfers, advertising, employee training, product labeling and the sale of expired or noncompliant marijuana.

The Maryland Cannabis Administration (MCA) is accepting informal stakeholder feedback on the draft regulatory amendments through September 30. The package would amend numerous sections of the state’s cannabis regulations, with another 30-day formal public comment period planned once the proposal is published in the Maryland Register.

Among the more consequential provisions, MCA would be authorized to deny a marijuana business’s license renewal if the licensee has unpaid taxes in any jurisdiction. The proposal defines “taxes in arrears” as unpaid taxes while excluding taxes being timely paid through an installment agreement or offer in compromise.

Conditional licenses could also be rescinded if a licensee fails to respond within 30 days to official MCA communications related to the license. When reviewing transfers of ownership, regulators could require criminal history records, financial information and other information requested by the administration.

The proposal would establish a process allowing licensees to submit documentation supporting claims about the composition of an advertising audience. Maryland law restricts marijuana advertising based in part on the percentage of the expected audience that is at least 21 years old.

Other proposed changes would require marijuana business agents to report home-address changes within 14 days and would replace the state’s Responsible Vendor Training program with a Cannabis Agent Training program. Employees would generally have to complete the approved training within 90 days of starting work and at least once every two years. Training would cover subjects including state and local licensing and enforcement, public health and safety standards, marijuana product requirements and, for dispensary workers, the medical marijuana program.

The package would also increase the maximum number of employees at a micro dispensary from 10 to 20, implementing legislation enacted earlier this year.

On the product side, the rules would require allergen information on the outer marketing layer of marijuana product packaging and would expressly prohibit licensees from selling, transferring or delivering marijuana that is adulterated, expired or fails to comply with state composition, production or labeling requirements.

Another provision would establish a formal process for people and businesses to request declaratory rulings from MCA concerning how cannabis statutes, regulations or agency orders apply to particular circumstances. The proposed fee for filing such a petition would be $1,000.

MCA says the package also contains technical changes and clarifications intended to bring regulations into line with existing state law and agency policy.