Cannabis - Management Service Agreements, Advertising, and Penalties - Alterations (Cannabis Reform and Opportunity Act)

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1519*

HOUSE BILL 1519
A3 6lr2622

By: Delegates Amprey and Boafo
Introduced and read first time: February 13, 2026
Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Cannabis – Management Service Agreements, Advertising, and Penalties – 2
Alterations 3
(Cannabis Reform and Opportunity Act) 4

FOR the purpose of altering the definition of “control” of a cannabis business and excluding 5
from the definition certain management services agreements, franchise 6
relationships, and options to purchase ; prohibiting the Mary land Cannabis 7
Administration from limit ing the acquisition of a certain ownership interest in 8
cannabis businesses; requiring a cannabis licensee to submit a management services 9
agreement to the Administration for review and approval; reducing the number of 10
years that a cannabis licensee is prohibited from transferring ownership or control 11
of the license; altering the frequency of certain patient and sale s data that is 12
published by the Administration; repealing certain criteria for a certain prohibition 13
on cannabis advertising that targets minors; authorizing cannabis licensees to 14
engage in certain outdoor advertising on the premises of the business and at other 15
locations that are not within a certain distance of certain schools, child care facilities, 16
or other locations; providing a certain exception to a prohibition on the third–party 17
use of certain distinguishing characteristics of a cannabis licensee for 18
advertisements; authorizing a cannabis licensee to request and requiring the 19
Administration to provide an opinion as to whether a cannabis advertisement 20
complies with certain requirements ; increasing the fine for the unlicensed sale o f 21
certain cannabis products; and generally relating to cannabis. 22

BY repealing and reenacting, without amendments, 23
Article – Alcoholic Beverages and Cannabis 24
Section 36–101(a), (c), and (aa) and 36–902 25
Annotated Code of Maryland 26
(2024 Replacement Volume and 2025 Supplement) 27

BY repealing and reenacting, with amendments, 28
Article – Alcoholic Beverages and Cannabis 29
2 HOUSE BILL 1519

Section 36–101(o), 36–401(e), 36–503, 36–803, 36–901, 36–903, and 36–1102 1
Annotated Code of Maryland 2
(2024 Replacement Volume and 2025 Supplement) 3

BY adding to 4
Article – Alcoholic Beverages and Cannabis 5
Section 36–101(u–1) and 36–502.1 6
Annotated Code of Maryland 7
(2024 Replacement Volume and 2025 Supplement) 8

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10

Article – Alcoholic Beverages and Cannabis 11

36–101. 12

(a) In this title the following words have the meanings indicated. 13

(c) “Administration” means the Maryland Cannabis Administration established 14
under this title. 15

(o) (1) “Control” means: 16

(i) the decision –making authority over the management, 17
operations, or policies that guide a business; or 18

(ii) authority over the operation of the technical aspects of a 19
business. 20

(2) “Control” includes: 21

(i) holding a right to veto significant events; 22

(ii) the right or authority to make or veto decisions regarding 23
[operations and strategic planning, ] capital allocations, acquisitions, and divestments; 24
AND 25

(iii) the right or authority to appoint or remove directors, 26
corporate–level officers, or their equivalent[; 27

(iv) the right or authority to make major marketing, production, and 28
financial decisions; and 29

(v) the right or authority to execute exclusive contracts or significant 30
contracts in the aggregate of $10,000 or greater on behalf of the licensee]. 31

HOUSE BILL 1519 3

(3) “CONTROL” DOES NOT INCLUDE: 1

(I) A MANAGEMENT SERVICES AGREEMENT THAT CONVEYS THE 2
RIGHT TO OR ACTUAL PAYMENT FROM THE CANNABIS LICENSEE TO THE PROVIDER 3
OF THE SERVICE IN AN AMOUNT THAT DOES NOT EXCEED, OVER THE COURSE OF A 4
CALENDAR YEAR, THE GREATER OF: 5

1. 25% OF THE CANNABIS LICENSEE’S GROSS REVENUE; 6
OR 7

2. 50% OF THE CANNABIS LICENSEE’S GROSS PROFIT; 8

(II) A FRANCHISE RELATION SHIP SUBJECT TO TITLE 14, 9
SUBTITLE 2 OF THE BUSINESS REGULATION ARTICLE; OR 10

(III) AN OPTION TO PURCHAS E A CONTROLLING OWNERSHIP 11
INTEREST IN A CANNABIS LICENSEE THAT IS EXERCISABLE ONLY AFTER THE 12
EXPIRATION OF THE TRANSFER PROHIBITION IN § 36–503(C) OF THIS TITLE. 13

(U–1) “MANAGEMENT SERVICES AGREEMENT” MEANS AN AGREEMENT UNDER 14
WHICH A CANNABIS LICENSEE CONTRACTS WITH A THIRD PARTY TO RECEIVE: 15

(1) MANAGERIAL, ADMINISTRATIVE, OPERATIONAL, OR ADVISORY 16
SERVICES; 17

(2) FINANCING, INCLUDING EQUITY INV ESTMENTS AND 18
CONVERTIBLE DEBT; 19

(3) COMMERCIAL REAL PROPERTY; OR 20

(4) INTELLECTUAL PROPERTY. 21

(aa) “Ownership interest” means a direct or indirect equity interest in a cannabis 22
licensee, including in its profits, revenues, shares, or stock. 23

36–401. 24

(e) (1) This subsectio n applies to all licenses, including licenses converted 25
under subsection (b)(1)(ii) of this section. 26

(2) Subject to paragraph (3) of this subsection, a person may have an 27
ownership interest in or control of, including the power to manage and operate: 28

(i) for standard licenses and micro licenses: 29
4 HOUSE BILL 1519

1. one grower licensee; 1

2. one processor licensee; and 2

3. not more than four dispensary licensees; 3

(ii) for incubator space licenses, not more than two licensees; and 4

(iii) for on–site consumption licenses, not more than two licensees. 5

(3) (i) A person who owns or controls an incubator space licensee or an 6
on–site consumption licensee may not own or control any cannabis licensee listed under 7
paragraph (2)(i) of this subsection. 8

(ii) The Administration [shall adopt regulations limiting] MAY NOT 9
LIMIT a person or fund from acquiring a nonmajority ownership interest in multiple 10
cannabis businesses beyond the limitations established under this subsection. 11

(4) The restrictions in paragraph (2) of this subsection do not apply to: 12

(I) a person [or an entity who ] THAT holds an ownership interest 13
only as a passive investor; OR 14

(II) A FRANCHISOR SUBJECT TO TITLE 14, SUBTITLE 2 OF THE 15
BUSINESS REGULATION ARTICLE. 16

36–502.1. 17

(A) A MANAGEMENT SERVICES AGREEMENT MAY NOT TAKE EFFECT UNTIL 18
THE AGREEMENT IS APP ROVED BY THE ADMINISTRATION IN ACC ORDANCE WITH 19
THIS SECTION. 20

(B) (1) A CANNABIS LICENSEE SHALL SUBMIT A PROPOSED 21
MANAGEMENT SERVICES AGREEMENT TO THE ADMINISTRATION FOR REVIEW AND 22
APPROVAL. 23

(2) AS PART OF THE ADMINISTRATION’S REVIEW UNDER THIS 24
SUBSECTION, THE ADMINISTRATION MAY RE QUIRE THAT A PARTY TO A 25
MANAGEMENT SERVICES AGREEMENT PROVIDE AN Y OTHER ADDITIONAL 26
INFORMATION RELEVANT TO THE AGREEMENT. 27

(C) THE ADMINISTRATION SHALL REVIEW THE INFORMATION SUBM ITTED 28
IN ACCORDANCE WITH SUBSECTION (B) OF THIS SECTION TO DETERMINE WHETHER 29
HOUSE BILL 1519 5

THE MANAGEMENT SERVICES AGREEMENT CONSTITUTES A TRANSFER OF CONTROL 1
IN VIOLATION OF THIS TITLE. 2

(D) (1) BASED ON THE ADMINISTRATION’S REVIEW CONDUCTED UNDER 3
SUBSECTION (C) OF THIS SECTION , THE ADMINISTRATION SHALL APPROVE, 4
CONDITIONALLY APPROVE, OR DENY THE MANAGEMENT SERVICES AGREEMENT. 5

(2) IF THE ADMINISTRATION CONDITIONALLY APPROVES OR DENIES 6
A MANAGEMENT SERVICES AGREEMENT, THE ADMINISTRATION SHALL INFORM THE 7
CANNABIS LICENSEE OF THE GROUNDS FOR THE CONDITIONAL APPROVAL OR THE 8
DENIAL. 9

(3) THE DETERMINA TION OF THE ADMINISTRATION SHALL BE 10
PROVIDED TO THE CANNABIS LICENSEE IN WRITING. 11

(4) IF THE ADMINISTRATION DOES NOT MAKE A DETERMINATION 12
WITHIN 45 DAYS AFTER RECEIVING THE SUBMITTAL OF A M ANAGEMENT SERVICES 13
AGREEMENT UNDER SUBSECTION (B)(1) OF THIS SECTION , THE MANAGEMENT 14
SERVICES AGREEMENT SHALL BE DEEMED APPROVED. 15

(E) THE ADMINISTRATION SHALL ADOPT REGULATIONS THAT ESTABLISH A 16
PROCEDURE FOR THE SU BMISSION, REVIEW, AND APPROVAL OF A MA NAGEMENT 17
SERVICES AGREEMENT. 18

36–503. 19

(a) A cannabis license granted under this title is not transferable except as 20
provided in this section. 21

(b) To transfer ownership or control of a license issued under this title, a licensee: 22

(1) shall submit to the Administration: 23

(i) an application fee in an amount to be determined by the 24
Administration in accordance with this subtitle; and 25

(ii) an application developed by the Administration; and 26

(2) must meet the requirements for transfer of ownership or control 27
established by the Administration under this title. 28

(c) (1) A cannabis licensee, including a cannabis licensee whose licen se was 29
converted in accordance with § 36 –401 of this title, may not transfer ownership or control 30
of the license for a period of at least [5] 3 years following licensure. 31

6 HOUSE BILL 1519

(2) The [5–year] 3–YEAR period specified in paragraph (1) of this 1
subsection does not include the time period that a business is considered by the 2
Administration to be in a preapproved licensure status. 3

(3) The limitations under this subsection do not apply to: 4

(i) transfers as a result of the disability, incapacity, or death of the 5
owner of a cannabis license, bankruptcy or receivership in accordance with a lending 6
agreement of a cannabis licensee, or court order; or 7

(ii) the sale of a cannabis licensee to the license e’s employees 8
through an employee stock ownership plan as defined in § 407(d)(6)(A) of the Employee 9
Retirement Income Security Act of 1974. 10

(4) The limitations under this subsection do not apply to a transfer of 11
ownership that is the subject of a legall y binding settlement agreement resulting from 12
litigation commenced on or before January 1, 2023. 13

36–803. 14

[The] ON OR BEFORE THE 10TH DAY OF EACH MONTH, THE Administration shall 15
publish the following data, organized by month, [on a rolling basis and ] on a publicly 16
accessible part of the Administration’s website: 17

(1) the number of patients, caregivers, and providers certified under this 18
title; 19

(2) the wholesale and retail sales of medical and adult –use cannabis, 20
measured by revenue and volume; and 21

(3) the median consumer price for cannabis and cannabis products. 22

36–901. 23

(a) In this subtitle [, “advertisement” ] THE FOLLOWING WORDS HAVE THE 24
MEANINGS INDICATED. 25

(B) (1) “ADVERTISEMENT” means the publication, dissemination, or 26
circulation of any auditory, visual, digital, oral, or written matter, which is directly or 27
indirectly calculated to induce the sale of cannabis or any cannabis –related product or 28
service. 29

[(b)] (2) “Advertisement” does not include packaging or labeling. 30

HOUSE BILL 1519 7

(C) “THERAPEUTIC OR MEDICAL CLAIM” MEANS A CLAIM THAT EXPLICITLY 1
STATES A PRODUCT CAN DIAGNOSE, TREAT, MITIGATE, CURE, OR PREVENT A 2
DISEASE OR CONDITION. 3

36–902. 4

An advertisement for cannabis and cannabis products or cannabis –related services 5
that makes therapeutic or medical claims shall: 6

(1) be supported by competent and reliable scientific evidence; and 7

(2) include information on the most serious and most common side effects 8
or risks associated with the use of cannabis. 9

36–903. 10

(a) (1) An advertisement for a cannabis licensee, cannabis product, or 11
cannabis–related service may not: 12

(i) violate Title 13, Subtitle 3 of the Commercial Law Article; 13

(ii) directly [or indirectly ] target individuals under the age of 21 14
years; 15

(iii) contain a design, an illustration, a picture, or a representation 16
that: 17

1. targets [or is attractive to ] minors, including a cartoon 18
character, a mascot, or any other depiction that is commonly used to market products to 19
minors; 20

2. displays the use of cannabis, including the consumption, 21
smoking, or vaping of cannabis; 22

3. encourages or promotes cannabis for use as an intoxicant; 23
or 24

4. is obscene; OR 25

(iv) engage in advertising by means of television, radio, Internet, 26
mobile application, social media, or other electronic communication, event sponsorship, or 27
print publication, unless at least 85% of the audience is reasonably expected to be at least 28
21 years old as determined by reliable and current audience composition data[; or 29

(v) except as provided in paragraph (2) of this subsection, engage in 30
advertising by means of placing an advertisement on the side of a building or another 31
8 HOUSE BILL 1519

publicly visible location of any form, including a sign, a poster, a placard, a device, a graphic 1
display, an outdoor billboard, or a freestanding signboard]. 2

(2) [A] SUBJECT TO THE PROHIBITIONS UNDER P ARAGRAPH (1)(I) 3
THROUGH (III) OF THIS SUBSECTION, A cannabis business may [place exterior signage] 4
PUBLICLY DISPLAY AN ADVERTISEMENT, INCLUDING A SIGN, A POSTER, A GRAPHIC 5
DISPLAY, AN OUTDOOR BILLBOARD, OR A FREESTANDING SIGNBOARD: 6

(I) on the premises of the business [for the limited purpose of 7
identifying the business to the public]; OR 8

(II) AT ANY OTHER LOCATION THAT IS NOT WITHIN 500 FEET OF: 9

1. A PRIMARY OR SECONDARY SCHOOL; 10

2. A LICENSED CHILD CARE CENTER OR A REGISTERED 11
FAMILY CHILD CARE HOME UNDER TITLE 9.5 OF THE EDUCATION ARTICLE; 12

3. A PLAYGROUND, RECREATION CENTER, LIBRARY, OR 13
PUBLIC PARK; 14

4. A PLACE OF WORSHIP; OR 15

5. A FACILITY THAT PROV IDES SUBSTANCE USE 16
TREATMENT. 17

(b) (1) (i) Subject to subparagraph (ii) of this paragraph, each 18
cannabis–related website shall employ a neutral age –screening mechanism that verifies 19
that the user is at least 21 years old, including by using an age –gate, age–screen, or age 20
verification mechanism before the user may access or view any content and before the 21
website may collec t the user’s address, e –mail address, phone number, or contact 22
information to disseminate advertisements. 23

(ii) If a website is appropriate for a qualifying patient who is under 24
the age of 21 years, the website shall provide an alternative screening mec hanism for the 25
qualifying patient. 26

(2) An advertisement placed on social media or a mobile application shall 27
include a notification that an individual must be at least 21 years old to view the content. 28

(3) The provisions of this subtitle applicable to cannabis licensees may not 29
be avoided by hiring or contracting with a third party, or outsourcing advertisements that 30
do not comply with this subtitle. 31

HOUSE BILL 1519 9

(4) (I) [A] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 1
PARAGRAPH, A cannabis licensee may not allow the use of the licensee’s trademarks, 2
brands, names, locations, or other distinguishing characteristics for third –party use for 3
advertisements that do not comply with this subtitle. 4

(II) THE USE OF TRADEMARKS , BRANDS, NAMES, LOCATIONS, 5
OR OTHER DISTINGUISH ING CHARACTERISTICS IN A NEWS ARTICLE , INTERVIEW, 6
DOCUMENTARY, OR OTHER EDITORIAL C ONTENT THAT IS NOT I NTENDED AS 7
COMMERCIAL ADVERTISI NG IS NOT SUBJECT TO THE PROHIBITION UNDE R 8
SUBPARAGRAPH (I) OF THIS PARAGRAPH. 9

(5) (I) A CANNABIS LICENSEE MA Y SUBMIT , IN A FORM 10
PRESCRIBED BY THE ADMINISTRATION, AN ADVERTISEMENT TO THE 11
ADMINISTRATION FOR AN ADVISORY OPINION ON WHETHER THE ADVERTISEMENT 12
COMPLIES WITH THE REQUIREMENTS OF THIS SECTION. 13

(II) WITHIN 30 DAYS AFTER RECEI VING AN ADVERTISEMEN T 14
SUBMITTED UNDER SUBP ARAGRAPH (I) OF THIS PARAGRAPH , THE 15
ADMINISTRATION SHALL REVIEW THE ADVERTISE MENT AND PROVIDE THE 16
LICENSEE WITH THE ADVISORY OPINION. 17

(c) The Administration shall adopt regulations to establish procedures for the 18
enforcement of this section. 19

36–1102. 20

(a) (1) In this section the following words have the meanings indicated. 21

(2) “Hemp” has the meaning stated in § 14–401 of the Agriculture Article. 22

(3) “Tetrahydrocannabinol” means: 23

(i) any tetrahydrocanna binol, including 24
delta–8–tetrahydrocannabinol, delta –9–tetrahydrocannabinol, and 25
delta–10–tetrahydrocannabinol, regardless of how derived; 26

(ii) any other cannabinoid, except cannabidiol that the 27
Administration determines to cause intoxication; and 28

(iii) any other chemically similar compound, substance, derivative, or 29
isomer of tetrahydrocannabinol, as identified by the Administration. 30

(4) “Tincture” means a solution that is: 31

(i) dissolved in alcohol, glycerin, or vegetable oil; and 32

10 HOUSE BILL 1519

(ii) distributed in a dropper bottle of 4 ounces or less. 1

(b) (1) A person may not sell or distribute a product intended for human 2
consumption or inhalation that contains more than 0.5 milligrams of tetrahydrocannabinol 3
per serving or 2.5 milligrams of tetra hydrocannabinol per package unless the person is 4
licensed under § 36–401 of this title and the product complies with the: 5

(i) manufacturing standards established under § 36 –203 of this 6
title; 7

(ii) laboratory testing standards established under § 36 –203 of this 8
title; and 9

(iii) packaging and labeling standards established under § 36–203 of 10
this title. 11

(2) A person may not sell or distribute a product described under 12
paragraph (1) of this subsection to an individual under the age of 21 years. 13

(c) A person may not sell or distribute a cannabinoid product that is not derived 14
from naturally occurring biologically active chemical constituents. 15

(d) (1) Notwithstanding subsection (b) of this section and subject to paragraph 16
(2) of this subsection, it is not a violation of this section for a person to sell or distribute a 17
hemp–derived tincture intended for human consumption that contains: 18

(i) a ratio of cannabidiol to tetrahydrocannabinol of at least 15 to 1; 19
and 20

(ii) 2.5 milligrams or less of tetrahydrocannabinol per serving and 21
100 milligrams or less of tetrahydrocannabinol per package. 22

(2) To sell or distribute a hemp –derived tincture under this subsection, a 23
person must provide, as required by the Administration, tincture samples for t he purpose 24
of testing to determine chemical potency and composition levels and to detect and quantify 25
contaminants. 26

(e) A person who violates subsection (b) of this section: 27

(1) may be charged by a citation; and 28

(2) is guilty of a misdemeanor and on conviction is subject to a fine not 29
exceeding [$5,000] $10,000. 30

(f) A person who violates subsection (c) of this section: 31

(1) may be charged by a citation; and 32
HOUSE BILL 1519 11

(2) is guilty of a misdemeanor and on conviction is subject to a fine not 1
exceeding $10,000. 2

(G) EACH INDIVIDUALLY PAC KAGED PRODUCT THAT I S SOLD OR 3
DISTRIBUTED BY A PER SON IN VIOLATION OF SUBSECTION (B) OR (C) OF THIS 4
SECTION IS A SEPARATE VIOLATION. 5

SECTION 2. AND BE IT FURTHER ENACTED, That the Maryland Cannabis 6
Administration shall adopt regulations to implement this Act on or before January 1, 2027. 7

SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 8
1, 2026. 9