Are you wondering how to open a dispensary in Maryland? This page is dedicated to keeping you up to date on the latest news and information relevant to opening a cannabis business in Maryland. It also includes insights on upcoming developments. For hands-on guidance, Cannaspire’s Cannabis consultants work with operators at every stage.
Maryland became the 20th state to legalize marijuana for recreational use when voters approved Question 4 in the November 2022 referendum by a 65 percent to 35 percent margin. The new law, allowing people to possess and grow cannabis for personal use, took effect on July 1, 2023. This law coincided with the enactment of HB1071, which prevents police from using the smell or possession of marijuana alone as a reason for searches, and HB0232, which protects the parental use of cannabis from being considered neglect.
William Tilburg, executive director of the Maryland Medical Cannabis Commission, noted that Maryland reached $1 billion in medical cannabis sales after its launch in 2017. He commented, “more businesses and more patients” account for this sales surge.
In the first quarter of 2025 alone, Maryland collected over $17.5 million in adult-use cannabis sales tax revenue, reflecting sustained consumer demand and a stable, high-volume retail market entering its second full year of operation.
Despite statewide legalization, municipalities in Maryland have the authority to establish their own laws and regulations regarding the use and consumption of cannabis.
Ocean City cracked down on on-site cannabis consumption before the state’s recreational marijuana legalization took effect in July 2023. The town council unanimously voted on June 5th, 2023 to advance the ban on on-site consumption and approved an ordinance banning on-premises consumption licenses, along with fines for violations.
Baltimore County Council members voted to change the distance of how far dispensaries can be from each other, decreasing it from 2,500 feet to 1,000 feet, in accordance with state law.
In this section, we’ll keep you up to date on the latest developments in Maryland’s municipalities, including their stances, restrictions, and outright bans concerning cannabis.
An effort that made the state of Maryland the 21st medical marijuana state was HB 881 (Medical Marijuana – Natalie M. LaPrade Medical Marijuana Commission), which Maryland Governor Martin O’Malley signed into law on April 14, 2014. The bill intended to create a way for patients to access and utilize cannabis medical treatment. The bill includes:
A patient is eligible if a provider recommends treatment with medical cannabis for a qualifying medical condition such as cachexia, anorexia, or another severe chronic medical condition for which other treatments are ineffective. A full list of qualifying conditions is shown here.
As of November 5, 2025, Maryland has 88,059 cannabis patients. There are a total of 183 licenses: 24 Ancillary Business, 108 Dispensary Business, 23 Grower Business, 3 Independent Testing Lab, and 24 Processor Business.
At this time, no new license applications for medicinal marijuana are being accepted. However, here is the information on the requirements to start a Medicinal Marijuana Business in Maryland.
To participate in the adult-use cannabis sales starting July 1, 2023, existing cannabis businesses had the option to convert their medical licenses to new standard cannabis licenses. These converted licenses are valid for five years and allow businesses to grow, process, and sell cannabis to those aged 21 or older. Licenses that don’t convert can’t operate beginning July 1, 2023. For more information about this, check here.
On the first day of adult-use retail, 94 out of 100 existing medical dispensaries switched to serve adult-use customers. They collectively generated $3.6M in adult-use sales and over $900K in medical sales. Overall, Maryland retailers sold over $10.4M worth of cannabis during the three-day weekend, serving both markets.
Voters in Maryland approved Question 4 on November 8, 2022, making it the twentieth state to legalize recreational marijuana usage.
Question 4 was introduced as House Bill 1 in January 2022. HB 1 is accompanied by two pieces of companion legislation: HB 837, which is sponsored by Rep. Luke Clippinger, and SB 833, which is sponsored by Senator Brian Feldman. HB 837 and SB 833 include details for the initial steps for legalization, such as:
These provisions are contingent on voter approval of HB 1. They do not establish a license or regulating structure, and their policy does not involve the cultivation of cannabis at home. The possession of between 1.5 and 2.5 ounces of marijuana would simply result in a civil fine and would not be deemed a criminal violation. In April 2022, HB837 was enacted while SB 833 died.
The first round of licensing was exclusive to social equity applicants. It occurred from November 13, 2023, to December 12, 2023.
During this round, over 175 standard and micro cannabis grower, processor, and dispensary licenses will be exclusively reserved for social equity applicants.
The second round of licensing became legally permissible on or after May 1, 2024, but it has not yet opened as of 2025 due to the pending state disparity study.
The Marijuana Control Agency has set the following limits for each standard or micro cannabis license category in Round 1:
Micro licenses: 24 grower licenses, 24 processor licenses, and 8 dispensary licenses.
Standard licenses: 16 grower licenses, 32 processor licenses, and 75 dispensary licenses
Round 2 for standard and micro cannabis licenses will include the addition of on-site consumption licenses.
Both standard and micro licenses in Maryland allow businesses to grow, process, or sell cannabis. Micro licenses are for smaller businesses with limited cannabis operations, and micro dispensaries can also offer delivery services to patients and consumers.
To learn how experts can help you navigate the Maryland cannabis licensing process, visit Cannaspire’s cannabis licensing services.
All eligible applicants, meeting the minimum licensure requirements, will enter a randomized lottery based on license type and the county or region of their application submission. The number of standard dispensary licenses available in the first round are:
| Jurisdiction | Licenses Available |
| Baltimore City | 11 |
| Montgomery | 9 |
| Prince George’s | 9 |
| Baltimore | 6 |
| Anne Arundel | 5 |
| Calvert | 3 |
| Harford | 3 |
| Howard | 3 |
| Frederick | 3 |
| Washington | 3 |
| Carroll | 2 |
| Cecil | 2 |
| Charles | 2 |
| St. Mary’s | 2 |
| Talbot | 2 |
| Wicomico | 2 |
| Allegany | 1 |
| Caroline | 1 |
| Dorchester | 1 |
| Garrett | 1 |
| Kent | 1 |
| Queen Anne’s | 1 |
| Somerset | 1 |
| Worcester | 1 |
On September 1, 2023, the Maryland Cannabis Administration and the Office of Social Equity revealed the next steps for those looking to obtain a cannabis license in the state.
Here are the cannabis license application qualifications criteria and acceptable verification documentations:
The Cannabis Reform Act mandates that all Round 1 applicants must qualify as social equity applicants. A social equity applicant is an applicant with at least 65% ownership and control held by individuals who meet one or more of the following criteria:
Criteria 1: Resided in a disproportionately impacted area for a minimum of five years out of the past ten years. Review ZIP codes meeting the criteria here.
Criteria 2: Attended a public school located in a disproportionately affected area for a minimum of five years. Review open Maryland schools meeting criteria here.
Criteria 3: Attended a four-year higher education institution in the State for a minimum of two years, where at least 40% of the attendees are eligible for a Pell grant. Review the list of higher education institutions meeting criteria here.
You can locate the minimum qualifications for a cannabis business license application in the Evaluation Worksheet available here.
To check eligibility as a social equity applicant, you can use the Social Equity Verification Portal, available until November 7. To access the portal, complete the Cannabis Business Licensing Interest Form.
The following documents will be considered acceptable by the MCA for verifying an individual’s eligibility based on the criteria mentioned above:
Criteria 1: Two of these documents, showing the candidate’s address for five years from 2014 to 2023, will suffice for verification:
Criteria 2: Any of these documents confirming enrollment in a public school for five or more years will suffice. These records must be obtained from a public school and include the school’s address.
Criteria 3: Two years of transcripts or school records from any of these institutions are required. Records must be obtained from the listed institutions.
In addition to meeting the criteria above and submitting relevant documents for verification, an applicant must submit an operational plan, business plan, and diversity plan.
You can find templates for all the necessary attachments here:
Applicants must also submit an application fee of either $5,000 for a standard license or $1,000 for a micro license.
The detailed instructions on the requirements for submitting an application can be found here.
As of July 1, 2023, existing medical cannabis businesses in Maryland have the option to transition into providing cannabis and cannabis products to consumers aged 21 and above.
Between July and August 2023, the newly established Maryland Cannabis Administration (MCA), in collaboration with the Office of Social Equity, engaged in outreach, training, and guidance efforts to assist individuals interested in applying for new cannabis licenses.
Starting November 13 to December 12, 2023, there was a 30-day window for individuals and businesses to apply for standard or micro cannabis licenses during Round 1. The MCA also reviewed the submitted applications, conducted outreach, and held a lottery as part of the selection process to choose Round 1 applicants who will receive licenses..
Starting from January 1, 2024, the MCA commenced notifying the selected Round 1 applicants of their license awards.
In May 2024 or later, the MCA will announce the commencement of Round 2, which will include the availability of standard and micro cannabis licenses, potentially including licenses for on-site consumption.
Maryland’s Social Equity Program helps people from communities disproportionately impacted by past cannabis enforcement gain access to ownership and participation in the state’s regulated cannabis industry. The Maryland Cannabis Administration works with the Office of Social Equity (OSE) to set and verify eligibility criteria for qualifying applicants.
In 2025, Maryland launched a new initiative to support social equity licensees and micro-businesses through the nation’s first state-run cannabis incubator program, with applications open for site proposals. The incubator is designed to help social equity micro dispensaries and micro processors grow and operate their businesses.
To be treated as a social equity applicant, a business must be at least 65% owned and controlled by one or more people who meet at least one of the following conditions:
A disproportionately impacted area is defined in Maryland law as a place identified by the Office of Social Equity where cannabis possession charges have been more than 150% of the state’s 10-year average.
The Office of Social Equity (OSE) builds these eligibility criteria using state data. It publishes:
These official lists are the reference point for determining whether an owner’s residence or education history meets Maryland’s social equity standards.
An applicant must submit an application to the Maryland Cannabis Administration for a cannabis license. A submitted application must conform with the requirements established under Alcoholic Beverages and Cannabis Article § 36-404 and related regulations.
Applications must follow the official format required by the state and include the correct application fee as set by regulation.
Maryland law limits how many applications a person or business may be listed on during each licensing round. This applies to both owners and anyone with control of the business.
During a single application round:
Any applicant that violates these limits cannot be considered for licensure during that round.
Applicants are not required to own or control a property or facility at the time they submit a license application.
If a licensing round requires social equity eligibility, the Administration may verify an applicant’s supporting documents as part of the application review.
Maryland’s 2024 zoning update under House Bill 805 (HB0805) clarifies where new cannabis businesses may locate and expands the flexibility given to counties and municipalities compared to the original Cannabis Reform Act of 2023.
Standard dispensaries operate from physical storefronts and are authorized to sell cannabis or cannabis products to patients and consumers. The MCA limits the number of standard dispensary licenses by county, with county-level award totals listed in the zoning update appendix.
Standard dispensaries may not locate:
Local jurisdictions may:
Local jurisdictions may not:
Maryland’s standard dispensary rules under COMAR 14.17.12.02 set specific requirements for facility construction, secure inventory storage, alarm systems, and video surveillance.
A standard dispensary must:
The premises must be constructed to prevent unauthorized entry and must include a secure inventory room that:
The dispensary must store its cannabis inventory in this secure room at all times other than while the licensed dispensary is open for business and during the two hours immediately before opening and two hours after closing. Any modification or renovation to the licensed premises requires prior approval from the Maryland Cannabis Administration.
A dispensary must maintain:
A motion-activated video surveillance system is required that:
Video recordings must be securely stored for at least 90 days and provided to the state or law enforcement within 48 hours upon request.
Cannabis may be displayed in clear, tamper-evident containers if:
You can watch our full presentation on Ready for Day 1: A Webinar to Prepare Maryland Dispensaries for Recreational Cannabis Sales Launch, where we cover compliance, employee training, payment solutions, and best practices for dispensaries transitioning to adult-use sales. Lean on Cannaspire’s cannabis compliance consulting to stay off the regulator’s radar.
We anticipate many new events through 2026 to unfold that will affect when and what recreational legalization will look like. By adding yourself to our Maryland Cannabis Mailing List (below), we will keep you updated on all relevant news, and not so easy to find news and comments related to Maryland Legalization below. This includes but is not limited to:
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If you’re planning to open a dispensary in Maryland or preparing for future licensing opportunities, Cannaspire’s consultants can help you understand the regulatory process and prepare your business for success.
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