A Maryland Senate committee has amended and approved marijuana sales legislation that would prepare the state to implement the voter-approved legalization referendum, sending it to the floor – where it is expected to come up for a vote this week.
At a session of the Senate Finance Committee, members passed legislation by Sens. Brian Feldman (D) and Antonio Hayes (D) by a vote of 7-2.
Senate President Bill Ferguson (D) said last week there were several issues lawmakers needed to work through before moving forward with the measure, including the views of existing hemp businesses, which expressed concerns over possible consequences from the measures introduction.
The House has already approved a companion version of it this month. The bills were identical upon introduction, but both the House and Senate bills are now differently amended. The Senate committee adopted one major change, which mostly brought the legislation into line with the House version.
That included passing a number of technical revisions, setting marijuana sales taxes at the full nine-percent rate, changing polices about the advisory committees structure, and changing definitions related to delta-8 THC, which may affect the states existing hemp industry.
“These studies are the result of collaborative efforts of many state agencies, organizations, and Maryland residents”, Dawn Berkowitz, deputy executive director of the commission, said in a press release. “The rich information provided allows the State to plan data-driven initiatives to guide health, safety, and regulatory efforts.”
The definition of social equity complainant was also amended to mirror House legislation. Members adopted other changes which differed from the House bill, such as requiring a process to verify IDs of marijuana consumers at retail stores and banning the on-site consumption of cannabis products whose products are in flames.
The Committee defeated several Republican-led amendments addressing issues related to the Labor Peace Agreement, required that hemp processors receive micro-growers licenses, and gave existing hemp businesses more time to either close their doors or apply for a business license for cannabis.
A Maryland Senate committee has amended and approved a marijuana sales bill intended to prepare the state for implementing the voter-approved legalization referendum, sending it to the floor – where it is expected to come up for a vote this week. At a session of the Senate Finance Committee, members passed legislation by Sens. Brian Feldman (D) and Antonio Hayes (D) by a vote of 7-2.
Senate President Bill Ferguson (D) said last week there were several issues lawmakers needed to work through before moving forward with the measure, including the views of existing hemp businesses, which expressed concerns over possible consequences from the measures introduction.
The senior senator said that “a lot of lawmakers are grappling with that now,” characterizing it as “a difficult question” that would be addressed as the bill moves forward. The House already approved a companion version of the legislation this month.
The bills were identical upon introduction, but both the House and Senate bills are now differently amended. The Senate committee adopted one major change, which mostly brought the legislation into line with the House version.
That included passing a number of technical revisions, setting marijuana sales taxes at the full nine-percent rate, changing polices about the advisory committees structure, and changing definitions related to delta-8 THC, which may affect the states existing hemp industry. The definition of social equity complainant was also amended to mirror House legislation.
Members adopted other changes which differed from the House bill, such as requiring a process to verify IDs of marijuana consumers at retail stores and banning the on-site consumption of cannabis products whose products are in flames.
The Committee defeated several Republican-led amendments addressing issues related to the Labor Peace Agreement, required that hemp processors receive micro-growers licenses, and gave existing hemp businesses more time to either close their doors or apply for a business license for cannabis.
Before the House of Representatives took up its version of the regulatory bill this month, the Senate President said that he expected bicameral lawmakers would try to “resolve” differences between the two versions, potentially “in conference committee,” sooner rather than later.
Marijuana will be taxed at a rate of nine per cent. Medical cannabis patients would be exempted from taxation. Thirty percent of the revenue raised by the marijuana tax would be dedicated to the Community Reinvestment Fund over the next 10 years, at minimum. The bill also calls for 1.5 percent of revenues to go to localities, 1.5 percent to counties, and 1.5 percent each for the Cannabis Community Health Fund and Cannabis Business Relief Fund.
The Marijuana Alcohol and Tobacco Commission would be renamed Marylands Alcohol, Tobacco, and Cannabis Commission, which would be in charge of regulatory matters. Under the Commission, a Cannabis Regulation and Enforcement Unit would be created, tasked with reviewing and issuing licenses to cannabis businesses.
Existing medical cannabis dispensaries would convert to dual-licensed businesses simultaneously when legalization took effect July 1, as long as they paid the fees. Regulators would need to begin approval of additional cannabis businesses licenses by July 1, 2024.
Social Equity applicants would have to be 65% owned by individuals who lived in disproportionally affected areas for at least five out of the last 10 years, attended public schools in those areas for at least five years, or otherwise qualify under other criteria based on the disproportionality study.
A capital access program under the State Department of Commerce would be established to foster industrial opportunities for social equity applicants and to offer low-interest loans. The bill states $5 million per year would be allocated to grants for existing medical marijuana dispensaries who have established “meaningful partnerships” with social equity applicants, which include mentoring, training, and/or shared commercial space.
Localities cannot mandate any further fees, and cannot prevent existing medical cannabis businesses converting to dual-licenses from operating in their areas. Medical marijuana patients would be allowed to grow up to four plants for personal use, instead of the current two. They would not be required to pay taxes on their medical cannabis products.
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The House version was amended several times before it was passed on the floor. For instance, it was amended to distribute 1.5% of cannabis tax revenue to counties, and the requirement that a head of a regulatory commission must be a law enforcement officer was removed. In addition, a House committee passed an amendment eliminating a cap on 200 licenses for delivery services, with members determining the category will be covered by a separate license for micro-dispensaries.
Members also revised the definition for social equity applicants in the legislation, clarifying that an overwhelmingly affected district is one with more than 150% the states average marijuana possession conviction rate in the last 10 years. In addition, the social equity applicants eligibility was amended to include individuals who attended, over the course of at least two years, an HBCU or one of the states certain other institutions of higher education.
The measure was also amended to prohibit localities from imposing license, occupancy, or other fees or requirements that are greater in magnitude or more onerous than a business that has a “similar effect” in that area.
The House bill was also amended to include language that allows adult consumers as well as health care patients to buy plants and other growable supplies at a licensed marketplace. Finally, the House version now says existing medical marijuana businesses have the ability to either convert into dual-market retailers, selling products to adults as well as to medical patients, or to sell their licenses to another operator.
Because these bills are considered emergency legislation, which would go into effect immediately, they need to get a three-fifths majority vote in both chambers in order to pass. Legalization for the possession of up to 1.5 ounces of cannabis took effect on July 1, which puts pressure on lawmakers to put regulations in place to allow commerce.