LOS ANGELES- Maryland has officially opened the first round of its adult-use cannabis licensing process, marking a significant step forward in the state’s cannabis industry. In a move to promote social equity, this initial phase exclusively reserves licenses for social equity applicants, a decision aligned with state law mandates.
Defined by state legislation, social equity applicants are entities with at least 65% ownership by individuals verified under the criteria. Maryland’s approach to social equity in cannabis licensing is a reflection of a growing trend across states to address historical injustices associated with cannabis criminalization.
The criteria for social equity applicants are multifaceted. Firstly, they include individuals who have lived or received education in areas disproportionately impacted by cannabis criminalization. This criterion underscores the state’s commitment to rectifying past disparities caused by drug policies. Additionally, eligibility extends to those who attended a Maryland four-year higher education institution where at least 40% of enrollees were Pell Grant-eligible, indicating a focus on supporting applicants from lower-income backgrounds.
Maryland has taken thorough steps to identify eligible areas and institutions, publishing a list of ZIP codes, public schools, and qualifying higher education institutions that fall within the disproportionately impacted areas.
The Maryland Cannabis Administration, overseeing the licensing process, will issue up to 179 licenses in this round. This includes 75 standard dispensaries allocated by county, and a diverse mix of other licenses distributed by region, including 16 standard growers, 32 standard processors, 24 micro growers, 24 microprocessors, and eight micro dispensaries. The distribution by county and region aims to ensure a balanced and equitable spread of cannabis businesses across the state.
Applicants have the opportunity to apply for multiple license types but will be limited to receiving only one license. This policy is likely designed to prevent market monopolization and ensure a broad distribution of licenses among eligible applicants.
Maryland’s pioneering approach in setting aside the first round of adult-use cannabis licenses for social equity applicants is not just a significant development in the state’s cannabis industry but also a notable example of how states are increasingly incorporating social justice considerations into cannabis legislation. By prioritizing individuals and communities that have been historically disadvantaged by cannabis criminalization, Maryland is taking concrete steps towards creating a more equitable and diverse cannabis market. As the industry continues to evolve, the outcomes of this licensing round will be closely watched as a potential model for other states considering similar initiatives
