Maryland Cannabis Administration seeks $5.7M boost as licensing, equity rollout continues

Victoria Martinez, a Department of Legislative Services analyst, told the Public Safety, Transportation and Environment Subcommittee that the Maryland Cannabis Administration’s fiscal 2025 allowance increases by $5.7 million, or 21.8 percent, to $32.1 million and is funded primarily from the Cannabis Regulation and Enforcement Fund.

DLS highlighted a $2 million reversion in fiscal 2024 for the Social Equity Partnership Grant program and said the program could not yet spend that appropriation because the next licensing round — targeted to social equity applicants — is still in process. DLS also noted a proposed $2.8 million deficiency to support cannabis enforcement activities carried out by the Alcohol, Tobacco and Cannabis Commission under an interagency memorandum of understanding.

Will Silberg, acting director of the Maryland Cannabis Administration, told the panel the agency has rapidly scaled staff since the Cannabis Reform Act moved the medical cannabis program out of the Department of Health and created an independent administration. He said MCA has filled roughly 30 new positions since April and added seven full‑time staff in the Office of Social Equity.

Silberg described the licensing process: conversions for existing medical licensees, then staged licensing rounds conducted by region and license category. He said MCA received 1,708 applications in the first round, that more than 85 percent passed initial review, and that records reviews are ongoing for about 200 applicants. The agency plans regional lotteries and conditional awards for social equity applicants and told the committee it will allow unsuccessful applicants to reapply in the next round without an additional fee.

On sales and market trends, DLS reported adult use sales rising since legalization in mid‑2023, with total sales shown in the analysis rising from $780 million in 2023 to an expected $1.3 billion in 2025 and an average retail cost per gram reported at $9.21.

Committee members pressed agency officials on why a $2 million general fund appropriation in FY24 was reverted and why FY25 includes general fund support for the Social Equity Partnership Grant. Silberg and DLS staff said the $2 million was a plan reversion tied to timing of licensing and that statute mandates a $5 million ongoing amount in later years; DLS/Risk staff said they would follow up with written clarification for the committee.

Members also asked about impaired‑driving detection and hemp litigation. Silberg said Maryland is tracking drug‑impaired driving through baseline studies and periodic updates and that short‑term county data presented so far do not show an increase in drug‑driving incidents. He noted there is no widely accepted field test for cannabis impairment, and that a Washington County lawsuit seeking to block enforcement of the Reform Act’s THC thresholds has produced an injunction on the state’s sales provision; a motions hearing and trial dates were described.

The subcommittee requested follow‑up written materials on: the FY24 $2 million reversion and FY25 funding source; statewide drug‑driving data and comparisons to other states’ training programs; maps and counts showing regional license allocations; and status updates on the licensing rounds and social equity grant rollout. The committee did not take formal action during the session.

The subcommittee recessed after the MCA discussion and moved to the next budget item.