Opening A Maryland Cannabis Business: Second Round Licensing
Updates: How To Win A Maryland Cannabis License
Since Maryland legalized adult-use cannabis in 2023, the marketplace has largely been limited to existing medical operators and the first wave of newly licensed social equity businesses. Non-social equity entrepreneurs—along with social equity applicants who weren’t selected in the initial license lotteries—have been patiently awaiting their chance to participate. Thanks to a newly passed bill, that opportunity is finally on the horizon.
Maryland Passes a New Bill to Expand Cannabis Licensing
In a promising step for aspiring startups and existing business owners, Maryland lawmakers passed Senate Bill 215 (SB 215), creating a second limited round of cannabis licensing. This legislation authorizes new licenses for growers, processors, dispensaries, microbusinesses, and on-site consumption lounges. It also expands what on-site lounges can offer, permitting the sale of non-infused food products alongside single-serving cannabis items.
This second licensing round offers fresh opportunities for entrepreneurs to enter a Maryland cannabis market serving over six million residents — but it comes with strict rules and business requirements.
What Cannabis Licenses Are Available in Maryland’s Second Round?
If you’re planning to open a cannabis business in Maryland, understanding which licenses are available is your first step. Maryland has set clear limits on the number of licenses available in this round for each of the standard, micro, incubator, and on-site consumption license categories. Keep in mind that microbusiness and on-site consumption lounge licenses are available exclusively to social equity applicants.
The available cannabis business licenses include:
Cultivator (Grower)
- 25 standard licenses
- 70 micro grower licenses
- 10 incubator space licenses
Processor (Manufacturer)
- 25 standard processor licenses
- 70 micro processor licenses
Retail (Dispensary)
- 120 standard dispensary licenses
On-Site Consumption
- 15 on-site consumption licenses
How Maryland’s Second Round Cannabis Licensing Process Works
Pre-License Disparity Study
Before awarding new cannabis licenses, Maryland regulators will conduct a disparity study. The study’s results will determine whether any remedial measures are necessary to promote fairness among applicants.
The licensing process will follow one of two possible outcome paths:
Outcome Path 1: If Discrimination Is Found
If the disparity study identifies evidence of discrimination, Maryland will apply specific corrective actions during the licensing process. These measures aim to support diverse and historically disadvantaged cannabis entrepreneurs.
Outcomes include:
- Minimum licensing qualifications and remedial measures will be applied.
- Licenses will be awarded through a lottery that includes those remedial steps, provided they are constitutional.
Outcome Path 2: If No Discrimination Is Found
If the disparity study finds no significant discrimination, the cannabis licensing process will proceed without additional remedial actions. Licenses will be awarded via a straightforward lottery process without special measures.
Cannabis Business Application Requirements in Maryland
Regardless of the disparity study’s findings, applicants must meet minimum standards to qualify for the cannabis license lottery. All submissions will be evaluated on a pass/fail basis to ensure that only prepared and compliant businesses move forward.
Applicants must submit:
1) Operational Plan
- Detailing the safe, secure, and effective cultivation, manufacture, or dispensing of cannabis for your operation
2) Business Plan
- Demonstrating a likelihood of business success
- Sufficient business ability and experience on the part of the applicant
- Providing for appropriate employee working conditions
3) Detailed Diversity Plan
- Outlining efforts toward inclusion and workforce diversity)
How to Prepare Now to Open a Cannabis Business in Maryland
Preparation is key for entrepreneurs planning to enter the Maryland cannabis market. With a highly competitive licensing process ahead, early action will dramatically improve your chances of success.
Here are the five (5) application points you should prioritize right now. Starting these steps early will position you to submit a complete, competitive application once the licensing window opens.
1) Staffing
- Build a knowledgeable staff with cannabis, regulated industry, and executive experience.
2) Business Strategy
- Develop a detailed business plan showing financial strength and operational readiness.
3) Compliance
- Prepare thorough compliance and quality control plans to meet Maryland’s regulatory standards.
4) Community Building
- Connect with your community in alignment with Maryland’s commitment to inclusion, diversity, and social equity.
5) Real Estate Search
- Scout and secure real estate that meets local zoning and licensing requirements.
Work with Canna Advisors to Launch Your Maryland Cannabis Business
Preparing and starting a cannabis business in Maryland means navigating a maze of complex regulations, intense competition, and rigorous compliance. With decades of consulting experience helping cannabis entrepreneurs in 39 states, Canna Advisors offers the expertise you need to start your business with confidence.
Whether you’re looking for strategic planning, application preparation, or full-service licensing support, Canna Advisors is ready to guide your team through Maryland’s second round of licensing and help position you for long-term success.
Contact our Maryland experts directory or book an hourly consultation to get your Maryland cannabis business tarted today.