1. A. This regulation applies to each licensee required to pay a conversion fee under Alcoholic Beverages and Cannabis Article, §36-403, Annotated Code of Maryland.
2. B. The conversion fee shall be based on the gross revenue of a licensee and calculated by the Administration using the State’s seed-to-sale tracking system for calendar year 2022.

3. C. Licensees choosing to convert their license shall, on or before July 1, 2023:

   1. (1) Pay the conversion fee as calculated by the Administration in full; or
   2. (2) Enter into a payment plan with the Administration.

4. D. The payment plan under §C(2) of this regulation shall establish:

   1. (1) The conversion fee as calculated by Administration;
   2. (2) The exact payment amount required under each payment installment; and
   3. (3) Payment due dates as directed by the Administration for four equal payment installments over an 18-month period.
5. E. On or before January 1, 2025, a licensee shall pay the installment payment in full in accordance with §D of this regulation.

6. F. A licensee that does not meet a payment deadline is subject to:

   1. (1) An administrative hold on their ability to transfer cannabis or cannabis products to another licensee or distribute or dispense cannabis or cannabis products to a qualifying patient, registered caregiver, or consumer until payment is remitted to the Administration;
   2. (2) A fine of up to $5,000 for each day past the deadline that the payment is not received; and
   3. (3) After a period of 30 days, license suspension or revocation.
7. G. A converted license shall be valid for a period of 5 years, beginning on July 1, 2023.
8. H. A converted license is not transferrable prior to July 1, 2028, except as provided under Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland.

Authority: Alcoholic Beverages and Cannabis Article, §§36-201, 36-401, and 36-403, Annotated Code of Maryland

Effective date:

Regulations .01—.03 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024

Regulations .01—.02 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)

Regulations .01—.04 adopted effective July 22, 2024 (51:14 Md. R. 678)

Regulation .04 amended effective March 16, 2026 (53:5 Md. R. 244)

Regulation .05 adopted effective April 14, 2025 (52:7 Md. R. 324)

Regulation .06 adopted effective March 16, 2026 (53:5 Md. R. 244)