OVERVIEW
The establishment of a cannabis incubator space is authorized in
§36-406 of the Alc. Bev. & Cannabis Article. The Maryland Cannabis Administration (MCA) is authorized to work with the Maryland Economic Development Corporation, also known as MEDCO, to acquire and construct the nation’s first state-run cannabis incubator facility. The day-to-day operations of this facility will be run by a non-profit entity selected through a Request for Proposal process by the Maryland Department of General Services (DGS).Currently, the Maryland Economic Development Corporation (MEDCO) is asking Maryland County and City partners to help identify private-, county-, municipality-, or State-owned sites that may be converted for use as an incubator space. As part of the submission requirement, applicants must agree to assist Maryland Economic Development Corporation (MEDCO) and Maryland Cannabis Administration (MCA) in facilitating community engagement related to the development and use of the site as a cannabis incubator site.
The submission deadline is November 6, 2025. Requests for applications and questions regarding the submission process should be directed to Sarah Horta, [email protected].
BACKGROUND
Q: What is a cannabis incubator space?
A: A cannabis incubator space is a facility where certain licensed users—like micro processors or micro dispensaries—may process and securely store cannabis or cannabis products for sale and delivery offsite. Cannabis is not sold or grown onsite. The incubator provides licensees who have operational or financial constraints with access to equipment and space. The facility may also provide business development opportunities—like classes to promote business growth and processing skills—to help new social equity cannabis businesses enter the market. Maryland’s cannabis incubator will be the first state-run cannabis incubator in the nation, designed to exclusively serve social equity licensees and micro-businesses.
Furthermore, micro dispensaries would use Maryland’s incubator facility as secured storage for products prior to delivery, while micro processors would be able to utilize a shared commercial kitchen and other shared equipment to process cannabis biomass or distillate and transform it into usable cannabis products including vapes, edible, etc. There will be no cannabis retail sales located on this site.
Q: What are social equity licensees?
A: As stipulated in the Cannabis Reform Act of 2023, the first cannabis business licensing round was exclusively for verified social equity applicants who met the following:
● For at least two years, attended a four-year institution of higher education in the State where at least 40% of the individuals who attended the institution of higher education received a Pell Grant.
The law defines “disproportionately impacted area” as a geographic area identified by the Office of Social Equity that had above 150% of the State’s 10-year average for cannabis possession
charges.
Q: What is a micro license?
A: A micro license authorizes the holder to operate a medical and adult-use cannabis business; their operations are smaller than that of a standard license. License type may differ. A micro processor, for instance, allows a cannabis business to transform cannabis into another product and package that product for sale up to but not more than 2,000 pounds of cannabis per year. In comparison, a standard processor licensee is authorized to process more than 2,000 pounds of cannabis per year.
Q: What is a micro dispensary?
A: A micro dispensary license authorizes the holder to operate a delivery service that sells cannabis or cannabis products without a physical storefront and may only employ up to 10 employees.
A standard dispensary licensee, in contrast, may operate a physical retail establishment that sells cannabis or cannabis products without a cap on the number of hired employees.
Q: What is a micro processor?
A: A micro processor license authorizes the licensee to transform cannabis into another product or an extract and package and label the cannabis product for supply to licensed dispensaries or independent testing laboratories.
Micro processors are prohibited from processing more than 2,000 pounds of cannabis annually. In contrast, standard processors are able to process more than 2,000 pounds of cannabis per year without a specific cap.
Q: What is a micro grower?
A: A micro grower or cultivation license authorizes the license holder to cultivate or package cannabis and to provide cannabis to other licensees for sale or processing into another cannabis product. They can also provide cannabis to registered independent testing laboratories. These licensees may not operate more than 10,000 square feet of indoor flowering cannabis plants or the outdoor equivalent.
Standard growers, in contrast, can operate more than 10,000 square feet but not more than 300,000 square feet of canopy.
It is important to note that presently, micro grower licensees have not been contemplated as a license type that will be present at the state-run cannabis incubator.
Q: What are the ideal criteria for a proposed site?
A: Ideally, proposed sites should be underutilized commercial and retail properties, such as enclosed malls, big box stores, and warehouse spaces. Priority will be given to sites that are 30,000 square feet or less and have a commercial kitchen and loading dock. As part of the application requirement, applicants must agree to assist Maryland Economic Development Corporation (MEDCO) and Maryland Cannabis Administration (MCA) in facilitating community engagement related to the development and use of the site as a cannabis incubator site.
The submission deadline is November 6, 2025. Requests for applications and questions regarding the submission process should be directed to Sarah Horta, [email protected].
Q: What is the history of this project?
A: Previously, the Maryland Economic Development Corporation (MEDCO) submitted a report analyzing potential sites to the Maryland General Assembly on December 29, 2023. Maryland Economic Development Corporation (MEDCO) solicited 15 of Maryland’s jurisdictions for potential locations, but did not receive participation from all. After receiving each list of potential locations, Maryland Economic Development Corporation (MEDCO) reached out to all sites, but not all sites responded. The Maryland Economic Development Corporation (MEDCO) completed research regarding the needs of the site for cultivation, retail, and processing capabilities, as well as reviewed DGS’s clearinghouse for other sites already owned by the State. Through the clearinghouse process, the MG William J. Witte Armory located at 130 Mellor Ave, Catonsville, MD 21228 was selected to be the site – however, upon further review, the State concluded the site was no longer viable and Maryland Cannabis Administration (MCA) and Maryland Economic Development Corporation (MEDCO) have since begun this new site solicitation process.
Q: Would cannabis be sold in this space?
A: No, cannabis would not be sold onsite. This space is for licensees to jumpstart their businesses and acquire skills in a supportive environment. They would sell products offsite.
Q: Would this be the first incubator of its kind?
A: Yes. This would be the first state-run cannabis incubator in the nation designed to exclusively serve social equity licensees and micro-businesses.
Q: Would there be public access to the space?
A: Only those who are registered, licensed, and badged by the Maryland Cannabis Administration (MCA) may use or access the cannabis incubator space.
Q: Would cannabis be grown on site?
A: No, plants cannot be grown or cultivated onsite.
Those who are licensed to use the facility will receive cannabis bud to repackage or process into another form onsite using the facility (e.g., vape, tincture, salve), or, to securely store onsite for future delivery services.
Q: Would there be cannabis odors that impact the neighborhood?
A: State-of-the-art odor mitigation systems will be built into the facility, to include industrial air filtration, sealed rooms, and HVAC controls, consistent with Maryland Cannabis Administration (MCA) environmental regulations.
More detailed information about regulations is available through the Division of State
Documents website under 14.17.11.07.E (Edible Cannabis Processing) and 14.17.11.19 (Processor Standard Operating Procedures).
Q: How would licensees be selected to use the space?
A: Selection criteria and program regulations will be finalized and adopted by the Maryland Cannabis Administration (MCA) to ensure fair access for qualifying micro licensees.
Q: What services would the incubator spaces offer?
A: The cannabis incubator will offer certain licensed users—like micro processors or micro dispensaries— space to process and securely store cannabis or cannabis products for sale and delivery offsite. Cannabis is not sold or grown onsite.
Micro dispensaries can use the facility to securely store products prior to delivery. They may not sell products out of the incubator space.
Micro processors have access to shared commercial kitchens and equipment to process cannabis into final products (e.g., vapes, edibles) and may store their products onsite. They may not sell products out of the incubator space.
Q: What are the roles of Maryland Economic Development Corporation (MEDCO), Maryland Department of General Service (DGS), and Maryland Cannabis Administration (MCA) in the project?
A: The Maryland Economic Development Corporation (MEDCO) will acquire the space and build out the incubator.
The Maryland Department of General Services (DGS) will then assume ownership and will issue a request for proposal to select a nonprofit to operate the incubator day-to-day. The non-profit will be responsible for managing the site, including facility operations, regulatory compliance, and facility use scheduling.
The Maryland Cannabis Administration (MCA) will also ensure compliance, provide technical guidance, facilitate business and workforce development sessions, and create regulations to govern the use of the incubator space, in addition to issuing the licenses that are authorized to use the space.
Q: Who would manage the incubator and be responsible for its operations once the space is built out?
A: The Maryland Department of General Services (DGS) will select a nonprofit to manage the incubator space through their standard request for proposal process—which is used for all state procurement projects—to manage high-level programming and workforce development in consultation with the Maryland Cannabis Administration (MCA) and other agency partners.
The Maryland Cannabis Administration (MCA) will maintain regulatory compliance of the site, including ensuring that construction requirements are met; security systems and proper lighting are present; and that compliance regulations are enforced to the same degree that they are for other cannabis licensees across the State.
Q: What is the cost and funding source for the incubator project?
A: The cannabis incubator project was originally estimated to cost $7 million.
In the FY 2026 operating budget, $5 million was realigned from the Maryland Department of General Services (DGS) to the Maryland Cannabis Administration’s (MCAs) budget as general funds with another $2 million in Pay-as-you-go (PAYGO) general funds as a deficiency from a prior fiscal year.
When a new site is identified, a new cost estimate for the project will be built based on the acquisition and renovation needs. The Administration will act with dedicated care and diligence to mitigate any additional cost, should they be incurred.
Q: Will the incubator space have 24-hour security?
Requirements include but are not limited to 24-hour security alarm systems that cover the facility’s entry points; any room holding cannabis; and locations where records are stored on- and off-site. Facility entry will be restricted to badge-access only and the security system will be continuously monitored.
The system must also possess other capabilities, including detection of smoke and fire; power loss detection; and mounted panic alarm devices. The system must also remain operational until the licensed premises no longer has cannabis of any sort on site and must be equipped with an auxiliary mode of power that can maintain operations for a minimum of 48 hours.
Q: Would a neighborhood be put at risk with the incubator?
A: The cannabis incubator facility will not have any public signage indicating its use. Security is a top priority, and protocols will align with those used in compliance with other regulated cannabis facilities.
No cannabis sales will occur on site and at no time would there be access to areas inside the facility by the general public or any unauthorized user.
All cannabis will be stored in reinforced vaults with 24/7 surveillance, access-controlled areas, and strict adherence to Maryland Cannabis Administration (MCA) security regulations.
Q: Do the proposed locations violate zoning laws or the intent of those laws?
A: No.
The applicable statute giving local jurisdictions this authority only sets distance restrictions from certain community establishments—schools, public parks, libraries, etc—for dispensaries. The incubator is not a dispensary, as no cannabis products may be sold out of the incubator facility.
As directed by the governor, potential new locations for the incubator space will follow similar guidelines and may not be within close proximity to residential communities and schools.
Q: How do businesses transition out of the incubator?
A: As businesses grow and plan to move out of the incubator to their own locations, the day-to-day incubator operator will facilitate and provide administrative assistance to the licensees as they transition. The operator will also notify the Maryland Cannabis Administration (MCA) of any licensee moving out of the incubator to ensure the vacated space can be utilized by another licensee . The model ensures new licensees can enter the incubator space over time to take advantage of the workforce development and training opportunities.
Q: Does the State of Maryland have an estimate of the number of licensees interested in utilizing the space?
A: We expect that approximately 60 social equity micro businesses would be eligible to use the space.
Q: Why is this project a priority of the Administration?
A: Maryland is proud to be home to the most equitable cannabis industry in the nation. As part of our ongoing effort to promote social equity in our state’s cannabis industry, we are committed to building a first-in-the-nation cannabis incubator that will support our social equity micro-licensees.
Through resource support and programming, the new facility will empower historically disadvantaged individuals and businesses to participate in the state’s burgeoning cannabis industry, which realized more than $1 billion in total sales in its first year.
Q: When do you expect to be able to announce a new site?
A: The Moore-Miller Administration will work expeditiously – but thoughtfully and deliberately – to select the new site. At this time, we do not have a projected date for when a new site might be announced but we will provide updates as they become available.
The Maryland Cannabis Administration (MCA) will maintain a dedicated webpage on the agency’s website that details progress of the new search, information about the intended use of the facility, potential locations being contemplated, and updates for community engagement, working closely with elected officials to host information sessions with community stakeholders and members of the public.
Q: How long do you now expect the project to be delayed?
A: We will have better estimates about the timeline for the project when the site has been selected. We will provide updates as they become available.
The Maryland Cannabis Administration (MCA) will maintain a dedicated webpage on the agency’s website that details progress of the new search, information about the intended use of the facility, potential locations being contemplated, and updates for community engagement, working closely with elected officials to host information sessions with community stakeholders and members of the public.
Q: How much do you expect this delay to cost taxpayers?
A: $7 million has been appropriated to support the cannabis incubator project.
The Administration will work diligently to mitigate any cost increases related to this project, wherever and whenever feasible.
Q: How do you plan to engage with the communities of the potential site?
A: As part of the site submission requirement, applicants must agree to assist Maryland Economic Development Corporation (MEDCO) and Maryland Cannabis Administration (MCA) in facilitating community engagement related to the development and use of the site as a cannabis incubator site.
Additionally, the
Maryland Cannabis Administration (MCA) will maintain a dedicated webpage on the agency’s
website that details progress of the new search, information about the intended use of the facility, potential locations being contemplated, and updates for community engagement, working closely with elected officials to host information sessions with community stakeholders and members of the public.
Creation of this facility is required by the law as enacted by the General Assembly. The Moore-Miller Administration is committed to fulfilling its statutory obligation while ensuring community input and feedback are factored into final selection of the new project site.
Q: Why did the Administration choose to abandon the Catonsville Armory as the site for the incubator space?
A: Upon further review of this project—and the selection of the Maryland National Guard William J. Witte Armory in Catonsville as the preferred site for the cannabis incubator—Governor Moore concluded that the state should explore new options for its location.
The governor therefore directed the three agencies at the helm of this project—the Maryland Cannabis Administration (MCA), Maryland Department of General Services (DGS), and Maryland Economic Development Corporation (MEDCO) —to conduct a new process and explore new locations for the project.
Q: The Maryland Economic Development Corporation (MEDCO) report did not have a significant number of options, how are you going to find other options to potentially use?
A: In the initial solicitation process in 2023, Maryland Economic Development Corporation (MEDCO) was directed to solicit sites from a finite number of counties. However, this most recent solicitation has been sent to every Maryland county in order to cast a wider net.
Q: Is a few dollars for the state really worth the safety and wellbeing of this community?
A: The safety and security of Maryland’s communities is the top priority of the Moore-Miller
Administration. All cannabis facilities must comply with Maryland Cannabis Administration (MCA) security regulations, available at cannabis.maryland.gov/pages/law.
Requirements include but are not limited to 24-hour security alarm systems that cover the facility’s entry points; any room holding cannabis; and locations where records are stored on- and off-site. Facility entry will be restricted to badge-access only and the security system will be continuously monitored.
The system must also possess other capabilities, including detection of smoke and fire; power loss detection; and mounted panic alarm devices. The system must also remain operational until the licensed premises no longer has cannabis of any sort on site and must be equipped with an auxiliary mode of power that can maintain operations for a minimum of 48 hours.
Maryland is proud to be home to the most equitable cannabis industry in the nation. As part of our ongoing effort to promote social equity in our state’s cannabis industry, we are committed to building a first-in-the-nation cannabis incubator that will support our social equity micro-licensees.
Through resource support and programming, the new facility will empower historically disadvantaged individuals and businesses to participate in the state’s burgeoning cannabis industry, which realized more than $1 billion in total sales in its first year.
Q: Is now really the time to be spending $7M on this project with the state in the midst of a fiscal crisis?
A: Maryland is proud to be home to the most equitable cannabis industry in the nation. As part of our ongoing effort to promote social equity in our state’s cannabis industry, we are committed to building a first-in-the-nation cannabis incubator that will support our social equity micro-licensees.
Through resource support and programming, the new facility will empower historically disadvantaged individuals and businesses to participate in the state’s burgeoning cannabis industry, which realized more than $1 billion in total sales in its first year.
