1. A. A micro licensee in good standing may apply to the Administration to convert to a standard license once it has been operational for at least 24 months, in a manner determined by the Administration.

2. B. The Administration may deny the micro licensee for conversion to a standard license if the micro licensee:

   1. (1) Has been operational for 24 or fewer months;
   2. (2) Has been found to violate any operational restrictions in Regulation .02B of this chapter;
   3. (3) Would be in violation of the ownership or control restrictions in COMAR 14.17.16;
   4. (4) Does not provide adequate notice to the Administration; or
   5. (5) For any other good cause determined by the Administration.
3. C. A micro license converted under §§A and B of this regulation to a standard license shall be valid through the date of the initial micro license.
4. D. Prior to the conversion of micro license to a standard license the licensee shall pay in full a pro-rated license fee.

5. E. The pro-rated license fee required under §D of this regulation shall be calculated by the Administration by:

   1. (1) Subtracting any previous license fee paid for the valid micro license that is being converted into the standard license from the standard fee under COMAR 14.17.21; and
   2. (2) Pro-rating the remaining license fee total by months remaining on the initial 5-year term of the micro license.

6. F. A micro license converted under this regulation:

   1. (1) Shall be forfeited by the licensee as a condition of conversion and the Administration may award the forfeited license in a subsequent licensing round;
   2. (2) Shall only be for the corresponding standard license type; and
   3. (3) May not be converted to an incubator space license under COMAR 14.17.06.09 or on-site consumption license under COMAR 14.17.06.10.
7. G. The Administration shall reserve enough standard licenses, by license type, to allow a reasonable number of micro licenses to convert to a standard license.

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

Effective date:

Regulations .01—.08 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024

Regulations .01—.08 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)

Regulations .01—.08 adopted effective July 22, 2024 (51:14 Md. R.678)

Regulation .02C amended effective April 14, 2025 (52:7 Md. R. 324)

Regulation .09 adopted effective May 26, 2025 (52:10 Md. R. 436)