1. A. A licensee may not transfer ownership of the license for the purpose of:

   1. (1) Improperly shielding the license or the value of the license from any judgement or liability; or
   2. (2) Furthering any action or plan of action that violates any State, local or federal law.

2. B. Except as authorized under Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland, a licensee may not be:

   1. (1) A member of the General Assembly;
   2. (2) An employee of the Administration; or
   3. (3) Otherwise in violation of Alcoholic Beverages and Cannabis Article, §36-504, Annotated Code of Maryland.

3. C. An individual, group of individuals or persons may not own multiple, non-majority or unreported shares or interests in a cannabis license unless every holding is a passive interest that:

   1. (1) Has an aggregate ownership interest of less than 5 percent; and
   2. (2) Does not have control over the license.

4. D. Owners found in violation of this regulation by the Administration may be subject to any of the following sanctions:

   1. (1) Fine;
   2. (2) Suspension or revocation of the licensed business; or
   3. (3) Forced divestiture of the owner from the licensed business.

Authority: Alcoholic Beverages and Cannabis Article, §§36-202, 36-501, 36-502, 36-503, 36-504, and 36-801, Annotated Code of Maryland

Effective date:

Regulations .01—.05 adopted as an emergency provision effective July 1, 2023 (50:14 Md. R. 559); emergency status expired June 30, 2024

Regulations .01—.05 adopted as an emergency provision effective June 7, 2024 (51:14 Md. R. 676)

Regulations .01—.05 adopted effective July 22, 2024 (51:14 Md. R. 678)

Regulation .03 amended effective April 14, 2025 (52:7 Md. R. 324)