As expected, Maryland Gov. Wes Moore signed a bill to establish a regulated cannabis market this week. Days before the May 3 signing, Moore reportedly moved more than $1 million in Green Thumb Industries stock into a blind trust.
Moore, a former Green Thumb board member, transferred a total $2.5 million in liquid assets to the trust, according to The Washington Post. To diversify, trust manager Brown Advisory must reduce Moore’s holdings in Green Thumb from 46% of his portfolio to less than 20% in 90 days.
Chicago-based Green Thumb Industries (CSE: GTII) produces branded cannabis products and owns the retail business Rise. It has retail and manufacturing facilities in 15 U.S. markets. Three Rise dispensaries are licensed in Maryland under its current medical marijuana program. Moore, who took office in January, resigned from the Green Thumb board in March. He began serving on the board in 2018.
A new business licensing system
SB 516 establishes a cannabis licensing system as required under a voter-approved constitutional amendment that legalized adult use of cannabis products.
Beginning July 1, adults 21 and older may possess up to 1.5 ounces of cannabis flower, 12 grams of concentrated cannabis, or a total amount of cannabis products that does not exceed 750 milligrams of THC. They may also grow up to two plants at home.
The new Maryland Cannabis Administration must convert existing medical cannabis business licenses to adult-use operation by July 1, if the businesses choose to convert. The MCA will begin reviewing license applications for growers, processors and dispensaries under a new licensing system this fall. It will also establish a state cannabis testing laboratory. Adult-use cannabis sales would be taxed at 9%.
Moore signed the bill during a ceremony where he also enacted legislation protecting reproduction and transgender health-care rights.
“Here in Maryland we are committed to righting the wrongs of the past and protecting the rights of all Marylanders in the future,” Moore said in a statement. “As long as I am governor, I will fight with everything I’ve got to ensure we’re creating a safe, equitable, and prosperous home for every Marylander.”
