.04 Lottery Award and Conditional License.

A. Lottery.

(1) The Administration shall conduct a lottery that is impartial, random, and in a format selected by the Administration.

(2) Any applicant that meets the minimum qualifications for licensing shall be placed in the lottery.

(3) Subsequent to the lottery, the Administration shall notify all applicants of whether their application was selected in the lottery.

(4) The Administration may request any additional information or supporting documentation from an applicant selected in the lottery necessary to verify aspects of the application, including but not limited to additional information and supporting documentation related to the:

(a) Operational plan for the safe, secure, and effective cultivation, manufacture, or dispensing of cannabis;

(b) Business plan demonstrating a likelihood of success and sufficient business ability and experience on the part of the applicant, and providing for appropriate employee working conditions;

(c) Detailed diversity plan; and

(d) Ownership and control of the applicant.

(5) The Administration may deny issuing a conditional license to an applicant selected in the lottery if:

(a) The applicant fails to provide any additional information or supporting documentation requested pursuant to §A(4) of this regulation within 10 calendar days;

(b) Any additional information or supporting documentation submitted by the applicant demonstrates the applicant is not eligible for a license under this subtitle or Alcoholic Beverages and Cannabis Article, Title 36, Annotated Code of Maryland; or

(c) The Administration determines that the applicant violated Regulation .02D of this chapter.

(6) The Administration shall notify an applicant who has been awarded a conditional license within 5 calendar days of the award.

B. Conditional License.

(1) A conditional licensee shall complete a supplemental license application.

(2) A supplemental license application shall require a conditional licensee to:

(a) Undergo a criminal history records check in accordance with Alcoholic Beverages and Cannabis Article, §36-505, Annotated Code of Maryland;

(b) Complete a financial background investigation conducted by the Administration;

(c) Verify any information or supporting documentation provided in the application;

(d) Disclose any adverse action taken against a professional or business license held in any jurisdiction by the applicant or any individual or entity holding an ownership interest in the applicant;

(e) Waive any contractual, statutory, or common law obligation of confidentiality and authorize any government agency in any jurisdiction to release to the Administration all information the conditional licensee has provided to any other jurisdiction while seeking a cannabis-related license in that other jurisdiction, as well as the information obtained by that other jurisdiction during any investigation it may have conducted regarding the applicant;

(f) Release all financial institutions, fiduciaries, and other parties from any contractual, statutory, or common law obligation of confidentiality to provide financial, personal and background information relevant to the conditional licensee’s capacity to manage a licensed facility; and

(g) Identify and demonstrate legal control of the proposed site, through lease, purchase, or other means, for the cannabis business.

C. Any conditional license not awarded due to circumstances in §A of this regulation may be awarded by lottery using the same pool of applicants as the initially selected application.