New MCA Draft Regulations signal needed relief for lottery winners

The MCA has proposed a new package of regulations that will impact all types of cannabis business owners throughout Maryland. These draft rules were submitted for legislative review on October 10, 2025. For many, particularly those holding a conditional license, the most significant news is a proposed change that could automatically grant a crucial extension to the deadline to become fully operational.

The proposed changes would grant an automatic six-month extension for all conditional licensees to become operational. The current rule, which requires a conditional licensee to become operational within 18 months of the award date, is set to be modified to 24 months. Under the proposed changes, the MCA would still retain its existing ability to grant an additional six-month extension if the licensee has already obtained legal control of an acceptable premises for operations.

There are still procedural steps that must occur since these are not emergency regulations. The MCA has sent the draft rules to the Joint Committee on Administrative, Executive, and Legislative Review (AELR) for initial review and anticipates publication in the Maryland Register, by mid-November. Once published, the regulations cannot be officially adopted until at least 45 days have passed.

Beyond the change to new licensee deadlines, all licensees must prepare for new compliance requirements. The draft regulations introduce a new, detailed definition of “Cartoon,” which includes any drawing with comically exaggerated features or the use of human characteristics for animals or objects. This is intended to prohibit any depiction that the MCA determines is “especially appealing to persons under the age of 21.” The MCA is actively investigating and enforcing advertisement and packaging regulations and these changes will further impact what licensees can do in their business advertising.

The rules also contain an important update regarding the definition of a “Residence,” which is relevant for delivery and consumer possession. The draft removes the current exclusion for short-term rentals, such as hotels or properties rented for less than 90 days. This change suggests a potential shift that could expand where consumers can legally possess cannabis or where licensed deliveries may be permitted.

Finally, these draft regulations propose  the following miscellaneous  rule changes:

·         The maximum number of grower or processor licensees that may agree to share a licensed premises is changed from two or more to a maximum of three.

·         Processors would need to submit a request for Administration approval to acquire hemp before accepting delivery.

·         A dispensary providing both drive-through and walk-up dispensing services must designate separate windows or openings for each type of service.

·         A micro dispensary must obtain consent from patients, caregivers, and consumers to be captured on video during delivery.

Please do not hesitate to contact us with any questions or concerns you may have about how these potential rule changes will affect your business. For questions or concerns, please contact Brendon Stern at brendon@coreytepe.com.