The Maryland Cannabis Administration (“MCA”) announced the Adult-Use Cannabis License Application will open on November 13th and issued additional directives pertaining to the Social Equity Verification Process. In an effort to further streamline the application process, prospective applicants must complete the following steps:

Step 1: Complete the Cannabis Business Licensing Interest Form: Prospective applicants are required to submit the Cannabis Business Licensing Interest Form to gain access to the MCA’s Social Equity Verification Portal, scheduled to open on Friday, September 8th. Upon completion of the Cannabis Business Licensing Interest Form, prospective applicants will receive a personalized link to the portal within 1-2 business days.

Step 2: Using the MCA’s Social Equity Verification Portal to Pre-Qualify: The MCA’s Social Equity Verification Portal will open on Friday, September 8, for a period of 60 days, closing on Tuesday, November 7. By using the MCA’s Social Equity Verification Portal, prospective applicants are required to verify their social equity status to become eligible to apply for an adult-use cannabis license. The verification of social equity status is a service being provided at no cost to the prospective applicant.

The Cannabis Reform Act defines social equity applicant as satisfying ONE or more of the following criteria:

1. Has lived in a disproportionately impacted area for at least five years of the ten years immediately preceding the submission of the application;
2. Attended a public school in a disproportionately impacted area for at least five years OR
3. For at least two years, attended a 4-year institution of higher education in Maryland where at least 40% of the individuals who attend the institution of higher education are eligible for a Pell Grant.

The MCA’s Social Equity Verification Portal will enable individuals to upload supporting documentation. The MCA has provided a list of acceptable documentation that meets the above-noted criteria, including:

To stay ahead, prospective applicants should begin gathering supporting documentation as soon as possible. According to the MCA, the Social Equity Verification Portal will close to the beginning of the application being open.

Step 3: Retain Social Equity Applicant Verification Number and Corresponding Report

Upon verification, an individual will receive a social equity applicant verification number and a corresponding report that they must submit along with their application. It’s important to note that verification of one’s social equity applicant status does not:

1. Guarantee an individual’s admission to the application lottery or
2. Replace the need for statutory application materials.

Individuals Who Have Not Lived In or Attended a Public School in Maryland In an Identified Disproportionately Impacted Area

Prospective applicants seeking social equity status based on living in or attending a public school in a disproportionately impacted area outside of the State of Maryland are required to use MCA’s Social Equity Verification Portal. Those outside the State of Maryland will be required to provide data that indicates the geographic area in question meets the State’s definition of a disproportionately impacted area.

After completing the verification portal, applicants may receive additional communications from the MCA with the specific data requirements to verify the location as a disproportionately impacted area.

The MCA announced the number of licenses available by license type and geographic area for the upcoming application round.

Table 1: Distribution of Standard Dispensary Licenses

Growers, Processors and Micro Licenses:

For the remaining license types, the State will be divided into four regions, as follows:

• Western Region: Allegany, Carroll, Frederick, Garrett, Montgomery, and Washington.
• Southern Region: Anne Arundel, Calvert, Charles, Prince George’s, and St. Mary’s.
• Central Region: Baltimore, Baltimore City, Cecil, Harford, and Howard.
• Eastern Region: Caroline, Dorchester, Kent, Queen Anne’s, Somerset, Talbot, Wicomico, and Worcester

EQUAL numbers of each of the remaining license types will be available, as outlined below.

Table 2. Distribution of Growers, Processors, and Micro Licenses.

To learn more about the Social Equity Verification Portal, visit https://mmcc.maryland.gov/Pages/Social-Equity-Verification.aspx. To access a copy of the MCA’s Application Announcement, visit https://mmcc.maryland.gov/. If you would like a call to discuss how these developments may affect you, contact Jonathan Wachs at jwachs@offitkurman.com or 301-575-0302.