MCA pushes to keep $5M incubator appropriation as DLS urges pause pending site selection
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Summary
DLS recommended reducing a $5 million FY2026 appropriation for the state cannabis incubator because the previously selected site is no longer viable; MCA Director Tabitha Robinson said the incubator is actively advancing through site shortlisting and due diligence and warned that removing funds would slow execution.
Victoria Martinez, Department of Legislative Services analyst, told the Appropriations Committee that the Maryland Cannabis Administration’s FY2027 allowance is $29.3 million, a $3.4 million reduction from the prior year driven in large part by a proposed $5 million cut to the cannabis incubator project because the previously identified armory site in Catonsville was no longer viable. Martinez noted MCA is funded by the cannabis regulation and enforcement fund (tax receipts) and described licensing and market trends: retail cannabis sales totaled about $1.2 billion in 2025 and the average price per gram fell to $8.57.
Martinez said MCA awarded 205 conditional licenses in its first social-equity round; conditional licensees have 18 months to become operational. She also described how BRFAA of 2025 changed the sales-and-use tax rate on cannabis from 9% to 12%, with the additional 3% directed to the general fund and an incremental $6.7 million flowing to the general fund in 2026.
MCA Director Tabitha Robinson disputed the DLS recommendation to reduce the $5 million incubator appropriation, saying the incubator initiative is already underway. Robinson said MCA identified an initial shortlist of 11 sites, completed visits to eight candidates and narrowed the list to three finalists; she said the agency was prepared to move to due diligence and anticipated closing on a site in FY2027. "The incubator initiative is not theoretical. It is already underway," Robinson said, warning that removing the appropriation would materially slow execution.
Committee members asked about community engagement and how agencies would support conditional licensees. Robinson described coordination with the Office of Social Equity and workforce-development programs; MCA also emphasized inspections and consumer-education efforts to guide customers to licensed sellers.
DLS recommended reducing the FY2026 appropriation for the incubator until a site is selected and prior encumbrances are spent; MCA urged the committee to retain the funds to maintain momentum.
