Maryland lawmakers have approved a measure to allow adult-use cannabis licensing by this summer, the Washington Post reports. The legislation sets the excise tax on cannabis products at 9%, includes social equity licensing, and allows conversion to the adult-use market by current medical cannabis operators.
The provisions allowing license conversion base the fees on operators’ 2022 sales and range from $100,000 to $2 million. The social equity licenses approved under the bill would be awarded during the second round of licensing in January.
The legislation earmarks 35% of cannabis-related tax revenues for the Community Reinvestment and Repair Fund – a new fund for local organizations that serve communities disproportionately affected by the war on drugs. The Office of Social Equity would create the rules and regulations for identifying those communities, the report says. Another 5% of the revenues would be given to counties.
Legislative analysts estimate that Maryland would bring in about $13 million from cannabis taxes in fiscal 2023, the report says.
Under the state’s legalization law, adults can possess up to 1.5 ounces of cannabis and grow two plants out of public view. The regulatory bill increased penalties for smoking cannabis in public to a $250 fine for the first offense and $500 for a second.
The measure moves next to Gov. Wes Moore (D) who is expected to sign it into law.
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