Client Alert: Maryland’s Proposed Regulations Could Provide Relief and NewOpportunities to Cannabis Licensees
The Maryland Cannabis Administration announced proposed changes aimed at reducing the regulatory burden for Maryland’s cannabis conditional license holders and existing operators. The changes include extending the 18-month social equity conditional license period to 24 months, permitting the sale of high potency beverages and tinctures, and requiring hemp processors to obtain MCA approval prior to receiving hemp shipments.
MCA anticipates the proposed regulations will be published in mid-November for a 30-day public comment period. During the comment period, interested stakeholders can provide feedback and suggestions on the proposed changes.
NOTE: These proposed changes are not yet law. Maryland licensees must comply with all current applicable laws and regulations.
Highlights of Proposed Changes:
- Extend the 18-month social equity conditional license period to 24 months.
- Define “management agreement” to include companies that provide consulting, advisory, or marketing services, excluding professional service providers.
- Permit the sale of approved high potency “liquid edibles” to medical cannabis patients.
- Require hemp processors to obtain MCA approval prior to receiving hemp for processing.
- Provide new language explicitly authorizing drive-up and walk-up windows at standard dispensaries through online, phone, or remote order.
- Increase the number of grower and processor licenses that may be co-located from two to three per location.
- Fee Reductions:
- Biannual agent and employee registration fees – $50 to $25.
- Biannual laboratory registration – $5,000 to $500.
- Registration fees for research institutions and entities – $50 to $25.
- Eliminate the $500 annual edibles permit fee.
KEY IMPACTS
Conditional License Expiration Extension
With the current deadline fast approaching for many licensees, the extension would provide additional time for licensees to secure locations and zoning approval and pass final MCA inspections. The change would be welcomed by those conditional licensees still navigating complex partnership agreements and real estate and zoning challenges. However, social equity licensees must still continue to plan to secure their annual license or approval of an extension before their conditional license expires. Expiration dates for many social equity conditional licensees begin February 2026.
Management Agreements
MCA proposes to define “management agreement” to include companies that provide consulting, advisory, or marketing services, excluding professional service providers (e.g., attorneys and accountants) that provide services related to the licensed operations. The proposed changes would mean MCA approval of all other consulting and marketing services agreements. While the change would provide additional oversight for frequently complex, and potentially predatory, transactions, the change could create a significant regulatory burden for licensees in need of timely technical support.
High Potency Liquid Edibles
The proposed changes would permit the sale of approved high potency “liquid edibles,” including beverages and tinctures to medical patients. Currently “high potency” beverages and tinctures, liquid edibles with more than 40mg of THC per serving or 400mg per package are not permitted in Maryland. Manufacturers of high-potency edibles in Maryland are subject to additional compliance requirements and oversight.
Approval of Hemp Shipments to Maryland Processors
MCA proposes to require hemp processors to obtain the agency’s approval prior to receiving hemp for processing. In addition to complying with manufacturing, testing, and labeling requirements, after ordering hemp for processing, processors would be required to obtain MCA approval before receiving and processing the hemp. While the approval requirement would increase transparency of hemp products processed in the state, the process could impact manufacturing processes, timelines, and costs.
Drive-up and Walk-up Windows
The amended regulations would explicitly authorize drive-up and walk-up windows at standard dispensaries. The use of drive-up and walk-up windows would be limited to pick-up of pre-ordered sales placed online, by phone, or through another remote order method. These services would be available to both adult-use consumers and medical patients.
NEXT STEPS
The MCA is expected to open the public comment period mid-November 2025. Holon Law Partners will continue to monitor developments and provide guidance once the final regulations are published.
For additional information or assistance preparing comments on the proposed regulations, please contact:
Amber Littlejohn
Counsel, Holon Law Partners
