Governor Wes Moore to Receive Recreational Cannabis Bill
The clock is ticking for Maryland’s recreational cannabis market, as Governor Wes Moore is expected to sign a bill that paves the way for legal sales this summer. After extensive discussions on taxation, market establishment, and beneficiary parties, lawmakers passed both House and Senate measures, considering lessons learned from other states and Maryland’s own medical cannabis industry.
Taxation and Market Framework
The 108-page proposal sets the sales tax at 9%, akin to alcohol taxation rates, and allows medical cannabis businesses to initially establish the recreational market. This tax rate is lower than other states, aiming to balance accessibility and revenue generation.
Social Equity and Community Reinvestment
As a central concern, the bill seeks to address the negative impact of the war on drugs on minority communities. Consequently, 35% of the state’s revenue will be directed to the Community Reinvestment and Repair Fund, aiding local organizations that serve affected communities. The Office of Social Equity will develop guidelines to identify these communities, ensuring fair distribution of funds.
Revenue Projections and Impact on Local Jurisdictions
Maryland anticipates approximately $13 million in revenue for fiscal 2023, with a dip in net proceeds as the Maryland Cannabis Administration and the Office of Social Equity are established. By fiscal 2027, the revenue is estimated to reach $67 million. However, concerns persist regarding the impact on local jurisdictions and their ability to impose stringent requirements and penalties.
Addressing Distance Restrictions and Accessibility
Debates on distance restrictions for dispensaries have emerged, with unsuccessful amendments proposed to increase the minimum distance from schools, playgrounds, libraries, and public parks. Accessibility and distribution were crucial factors, as lawmakers sought to fulfill voters’ requests for a fair and equitable market.
Continuous Revision and Improvement of Cannabis Laws
The Maryland General Assembly is committed to continuously revisiting and refining cannabis laws, following the pattern of the state’s alcohol laws. Last year’s legislation allowed for record expungement and reconsideration of sentences for marijuana possession, demonstrating the state’s ongoing efforts to achieve a just cannabis market.
