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Bill

HB 204

Cannabis - Wholesaler License - Establishment

2025 Regular Session

Maryland HB 204 creates a new cannabis wholesaler license category to streamline distribution between producers and retailers, enhancing supply chain efficiency.

Hearing 2/18 at 1:00 p.m.
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WeVote Research Nonpartisan
Bill Summary · HB 204

Legislative bill overview

HB 204 establishes a new wholesaler license category within Maryland's cannabis regulatory framework, allowing businesses to distribute cannabis products between retailers and producers. The bill creates licensing requirements, operational standards, and oversight mechanisms for cannabis wholesalers operating in the state's adult-use market.

Why is this important

Maryland's cannabis market currently operates with limited wholesale infrastructure, which can increase costs for retailers and limit product availability. Creating an official wholesaler tier could improve supply chain efficiency, reduce prices for consumers, and generate tax revenue through licensing fees. This represents an important step in developing a fully functional, multi-tiered cannabis market in the state.

Potential points of contention

  • Pricing and competition concerns: Critics may worry that establishing wholesalers could either entrench large players or create inefficient middlemen that increase costs rather than reduce them
  • Social equity provisions: Unclear whether wholesaler licenses include equity set-asides for communities disproportionately impacted by cannabis prohibition, potentially disadvantaging smaller or minority-owned businesses
  • Supply chain control: Questions about whether wholesaler consolidation could give dominant firms too much control over product distribution and limit producer/retailer independence

Compiled from official sources — confirm details with the bill’s official record.

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