More than 1,500 cannabis business applicants are eligible for Maryland’s social equity license lottery scheduled for March 14.
The Maryland Cannabis Administration announced that 1,515 out of 1,708 submissions qualified for the lottery, which will be live-streamed. Only 179 applicants across more than 40 lottery pools, based on type of business and county, will be drawn.
The lottery comes three months later than the Jan. 1 date established by the state legislature in the Cannabis Reform Act last year. One legal attempt to stop the licensing, filed by a California woman challenging social equity rules, was recently rejected in state court. The Maryland Hemp Coalition is seeking to halt all licensing after winning an injunction on the act’s requirement that hemp businesses need to be licensed. The Maryland Attorney General has appealed the injunction, and the case remains pending in state appellate and circuit courts.
The application period for social equity licensing, the first licensing round, closed Dec. 12. Since then, the MCA has been vetting applicants to ensure they meet eligibility criteria.
Under the Cannabis Reform Act, a social equity applicant must own or control 65% of the company. They are defined as someone who has either:
- Lived in a disproportionately impacted area for at least the five of past 10 years
- Attended a public school in a disproportionately impacted area for at least five years
- For at least two years, attended a four-year institution of higher education in Maryland where at least 40% of the individuals who attend are eligible for a Pell Grant
The MCA said 1,270, or 84%, of passing applicants claimed to be “minority- and women-owned businesses,” the same percentage as total applicants. Of these, 753 reported to be African-American or black-owned businesses, 248 said they were Asian-owned, and 43 were Hispanic or Latino-owned businesses.
In terms of types of licenses, 874 were for dispensaries, 449 were for growers, and 192 were for processors. Montgomery County, Prince George’s County and Baltimore County were the top three jurisdictions with the most applications.
According to the application rules:
“An individual or entity may not be associated with applications submitted for the same license type in multiple regions. Additionally, an individual or entity may be associated with no more than two applications across all licensing categories within the entire first licensing round,” (emphasis original).
Following the lottery and before they award any conditional licenses, the MCA will investigate to verify the details of each selected applicant, including claims regarding ownership and control made in their applications. After the lottery, selected applicants will receive additional information about the review process.
The lottery will be live-streamed beginning at 9:30 a.m. EDT, Thursday, March 14, at cannabis.maryland.gov
