Getting Maryland's Medical Marijuana Industry Operational

Katelyn Baker

Well-Known Member
Easton – Even when Maryland is past the bureaucratic stages of its fledgling medical marijuana industry, it could take a while for the market to reach its full potential.

In December, the Natalie M. LaPrade Maryland Medical Cannabis Commission announced preliminary license approval for medical marijuana dispensaries across the state, including several on the Eastern Shore.

Before that, in August, the commission announced 15 grower and processor license pre-approvals. That decision, however, has since become tied up in the state court system, as some applicants who were not picked for the first round of pre-approvals are suing state medical marijuana regulators, alleging a lack of racial diversity.

Two dispensary applicants were pre-approved in Upper Shore's Senate District 36 and two were pre-approved in the Mid-Shore's District 37.

The two dispensaries pre-approved in District 36 are Hippocratic Growth LLC and PharmKent LLC. Both have addresses listed in Chestertown, according to the cannabis commission's records. One processor in Queen Anne's County, Chesapeake Alternatives LLC, and grower in Cecil County, SunMed Growers LLC, were also pre-approved.

The two dispensaries pre-approved in District 37 are Peninsula Alternative Health LLC and Tilstar LLC. Doctors Orders Maryland LLC and MaryMed LLC were both pre-approved for grower and processor licenses, aiming for operation in Dorchester County.

The pre-approvals only covered the first stage of approvals, and are not definite. According to the cannabis commission, the pre-approved dispensaries must continue on to the second stage of the approval process, which includes undergoing criminal background investigations, financial due diligence checks and compliance inspections by the MMCC, as well as completing regulatory requirements, raising capital, securing local zoning approvals and construction of facilities.

For dispensers, the controlling factor for getting their businesses operational is when product is going to be available, said Darryl Hill, owner of Tilstar.

Hill is eyeing Cambridge as a location to set up his dispensary, but "we haven't locked into that," he said.

"We have four counties to work with. We're going to do some continued market research to make sure we optimize our location, in terms of convenience to the patients and other economic and market factors," Hill said.

One reason Hill said he'd like to locate in Cambridge is to provide some sort of economic impact for the area.

"We know that the production and sale of marijuana has great economic impact, in terms of jobs created and revenues – the ancillary businesses that spring up around the industry, like security, transportation," Hill said.

No matter where Hill chooses to set up shop, Tilstar would still have to go through standard local planning and approvals, "but that's a ways away," he said.

Growers have a year from the date of notification to get their operations up and running, "but that's just to have the doors open," Hill said.

"Once they do that, the market has to develop," he said. "In other words, you need doctors writing prescriptions and patients looking for medicine, which has proven in other states to take a little time to get going."

Michaels Lang, a managing member of PharmKent LLC, which was pre-approved for a dispensary in District 36 and is aiming for operation in Elkton, said the sequence of events to bring medical marijuana to the state is going pretty well, and is closer to happening than some might think.

Physicians have started to sign up to be certified to refer medical marijuana to patients, but there is currently still no patient database. According to the state cannabis commission's website, patients can expect to be able to apply for medical marijuana ID cards in the first quarter of 2017.

The patient database is the last big step that Lang sees critical to getting the medical marijuana industry rolling in Maryland, beyond the second stage of approval from the state commission.

"There are questions about the pace at which this is happening, but, you know, there are growers building facilities right now," Lang said. "I have received contract proposals from growers offering terms to purchase product from them, (although) they don't have the product now."

"These are businessmen building these enterprises. I think Maryland has done a pretty good job of putting a regulatory framework in place that enables business people to go out and execute a business plan," Lang said. "I know once we see the growers having product on the market and you see the patient registry come up for the patients to get their cards, then there will be a market."

Jake Van Wingerden has until Aug. 15 to get his medical marijuana growing business, SunMed Growers, operational in Warwick, Cecil County. But, Van Wingerden said they've already broke ground and started pouring concrete for the facility.

"Obviously, we have a tremendous amount to do because we have to build a facility from the ground up," Van Wingerden said.

SunMed Growers is building a 78,000-square-foot greenhouse growing cultivation complex, using the sun, instead of artificial lights, as the primary method of growing its medical marijuana.

Van Wingerden is also the owner of Tidal Creek Growers, a wholesale production greenhouse that operates out of Earleville and Davidsonville and grows about 8 million plants a year – petunias, poinsettias, mums and more.

"For us to grow six or eight thousand cannabis plants .... the growing/production side of it is kind of right up our alley," he said.

Van Wingerden said his operation in on track to have its facility finished and operational for July, but it would then need inspection and the second stage approval from the state medical cannabis commission. Once that's complete and SunMed Growers can get its first seeds in the ground, it's anywhere from a three- to six-month wait for the plants to grow until it actually has product to sell.

Some growers might have their businesses operational before SunMed Growers, he said. But, even so, Hill is right, Wingerden said – the dispensers will have to wait for the growers and processors to get operational before they can get their own businesses up and running.

In terms of when the medical marijuana market in Maryland will reach its full potential is anyone's guess, Lang said.

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Full Article: Getting Maryland's Medical Marijuana Industry Operational
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