1. A. Diversion.

   1. (1) A licensee, registrant, or agent may not:

      1. (a) Divert cannabis or cannabis products for any unauthorized sale or distribution;
      2. (b) Fail to maintain records in accordance with this subtitle or the licensee’s standard operating procedures;
      3. (c) Fail to accurately track, tag, or otherwise record inventory in the seed-to-sale tracking system; or

      4. (d) Sell or dispense cannabis or cannabis products in a manner that:

         1. (i) Exceeds the personal use amount of cannabis or cannabis products;
         2. (ii) Is reasonably expected to be in violation of the personal use amount; or
         3. (iii) Could otherwise reasonably give rise to any other violation of law.
   2. (2) A licensee, registrant, or agent may not conduct a series of transactions that would be in violation of §A(1)(d) of this regulation.

2. B. Health Endangerment.

   1. (1) A licensee, registrant, or agent may not:

      1. (a) Apply any contaminant to cannabis or cannabis products;
      2. (b) Handle cannabis or cannabis products in a manner that would endanger health and safety;
      3. (c) Store cannabis or cannabis products in a manner that would endanger health and safety; or
      4. (d) Otherwise risk the health and safety of a patient or consumer.
   2. (2) A licensee, registrant, or agent may not sell, dispense, or otherwise distribute cannabis or cannabis products to an individual younger than 21 years old unless the individual is a qualifying patient 18 years old or older.

3. C. A licensee or registrant may not substantially deviate or demonstrate a pattern of deviation from:

   1. (1) Its standard operating procedures;
   2. (2) Its application; or

   3. (3) State, federal, or local:

      1. (a) Law;
      2. (b) Regulations; or
      3. (c) Ordinances.

4. D. The Administration may fine, suspend, restrict, revoke, or otherwise sanction any cannabis licensee, registrant, or agent for:

   1. (1) Any violation of Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland;
   2. (2) Any violation of this subtitle;
   3. (3) Restricting, limiting, or otherwise impeding an inspection or investigation by the Administration;
   4. (4) A material misstatement, omission, misrepresentation, or untruth by the licensee, registrant, registered agent, or other employee; or

   5. (5) Any other violation of State, federal, or local:

      1. (a) Law;
      2. (b) Regulations; or
      3. (c) Ordinances.

Authority: Alcoholic Beverages and Cannabis Article, §§36-202, 36-203, and 36-901, Annotated Code of Maryland

Effective date:

Regulations .01—.06 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024

Regulations .01—.06 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)

Regulations .01—.06 adopted effective July 22, 2024 (51:14 Md. R. 678)

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

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

Regulation .06B, D amended effective April 14, 2025 (52:7 Md. R. 324)