1. A. In this regulation, the following terms have the meanings indicated.

2. B. Terms Defined.

   1. (1) “Co-located licensee” means a grower or processor licensee who has entered an agreement to share a licensed premises.
   2. (2) “Commingling” means mixing any cannabis belonging to one licensee with cannabis that belongs to another licensee.
   3. (3) “Storage area” means any single room or container designated for cannabis to be kept before distribution, transfer, or processing.

3. C. A maximum of three licensees may enter an agreement to share a licensed premises, provided:

   1. (1) Provided at least one of the licensees operates in the region in which they were awarded a license; and
   2. (2) The licensees are growers or processors.

4. D. If co-located licensees share equipment or production materials, each licensee shall:

   1. (1) Use equipment at separate times;
   2. (2) Sanitize any equipment and work space before it is used by another licensee; and
   3. (3) Maintain independent and unique storage areas.

5. E. A co-located licensee shall:

   1. (1) Adhere to all requirements for operating a licensed grower or processor premises, whichever applies;
   2. (2) Establish and follow all standard operating procedures for sharing a licensed premises and, if applicable, sharing equipment;
   3. (3) Store and keep separate all of its cannabis at all times to avoid commingling at any stage of the growth or production process;
   4. (4) Have equal, independent, and unique control over access to its storage area, including the ability to add or remove its badged agents to access any area in which their plants or products are stored;
   5. (5) Have equal independent and unique access to its video surveillance recordings, which shall be recorded and saved as required by COMAR 14.17.10.02 or COMAR 14.17.11.02, whichever applies; and
   6. (6) Maintain independent and accurate records within the seed-to-sale tracking system as required by regulations for their license type.

6. F. A co-location agreement:

   1. (1) May not transfer ownership or control of a license in violation of Alcoholic Beverages and Cannabis Article, §36-503, Annotated Code of Maryland;
   2. (2) May not be used to circumvent any requirements for operating a licensed premises;

   3. (3) May not take effect prior to Administration:

      1. (a) Approval of the agreement terms; and
      2. (b) Inspection of the shared premises; and
   4. (4) If co-located licensees are sharing security or video surveillance systems, shall specify which licensee is responsible for ensuring a shared system complies with COMAR 14.17.10.02F and G or COMAR 14.17.11.02E and F, whichever apply.

7. G. Upon signing a co-location agreement, a co-locating licensee shall provide to the Administration:

   1. (1) A copy of the co-location agreement; and
   2. (2) Any other documents relevant to the co-location as requested by the Administration.

8. H. If the Administration determines a co-location agreement violates §F of this regulation, the Administration may:

   1. (1) Deny or rescind approval of the co-location agreement; and
   2. (2) Fine, suspend, restrict, revoke, or otherwise sanction a co-locating licensee.

Authority: Alcoholic Beverages and Cannabis Article, §§36-202—203, 36-401, 36-405—36-407, 36-411, 36-503, and 36-802, Annotated Code of Maryland

Effective date:

Regulations .01—.10 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024

Regulations .01—.10 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)

Regulations .01—.10 adopted effective July 22, 2024 (51:14 Md. R. 678)

Regulation .02L adopted effective March 16, 2026 (53:5 Md. R. 244)

Regulation .03E—G adopted effective May 26, 2025 (52:10 Md. R. 436)

Regulation .04 amended effective May 26, 2025 (52:10 Md. R. 436)

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

Regulation .05A amended effective March 16, 2026 (53:5 Md. R. 244)

Regulation .11 adopted effective May 26, 2025 (52:10 Md. R. 436)

Regulation .11B, C amended effective March 16, 2026 (53:5 Md. R. 244)

Regulation .12 adopted effective April 14, 2025 (52:7 Md. R. 324)