EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0132*
HOUSE BILL 132
A3 5lr0130
(PRE–FILED) CF SB 215
By: Chair, Economic Matters Committee (By Request – Maryland Cannabis
Administration)
Requested: October 7, 2024
Introduced and read first time: January 8, 2025
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Cannabis – On–Site Consumption Establishments and Cannabis Events 2
FOR the purpose of limiting application submissions for on–site consumption licenses to 3
social equity applicants under certain circumstances; authorizing a political 4
subdivision to establish hours of operation for on–site consumption establishments; 5
authorizing the holder of an on–site consumption license to repackage and process 6
cannabis and cannabis products under certain circumstances; establishing certain 7
prohibitions for on–site consumption establishments related to the sale, distribution, 8
and consumption of cannabis; authorizing the holder of a certain cannabis event 9
registration established under this Act to hold certain cannabis events under certain 10
circumstances; establishing certain vendor permits for the sale or distribution of 11
cannabis products at cannabis events; authorizing political subdivisions to prohibit 12
or restrict the authorization of cannabis events, subject to certain limitations; and 13
generally relating to cannabis, on–site consumption establishments, and cannabis 14
events. 15
BY repealing and reenacting, without amendments, 16
Article – Alcoholic Beverages and Cannabis 17
Section 36–101(a), (c), (h), and (y) 18
Annotated Code of Maryland 19
(2024 Replacement Volume) 20
BY adding to 21
Article – Alcoholic Beverages and Cannabis 22
Section 36–101(c–1) and (ee–1) and 36–407.1 23
Annotated Code of Maryland 24
(2024 Replacement Volume) 25
BY repealing and reenacting, with amendments, 26 2 HOUSE BILL 132
Article – Alcoholic Beverages and Cannabis 1
Section 36–101(i), 36–404(g)(3), and 36–407 2
Annotated Code of Maryland 3
(2024 Replacement Volume) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBL Y OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – Alcoholic Beverages and Cannabis 7
36–101. 8
(a) In this title the following words have the meanings indicated. 9
(c) “Administration” means the Maryland Cannabis Administration established 10
under this title. 11
(C–1) “CANNABINOID BEVERAGE ” MEANS A BEVERAGE INT ENDED FOR 12
HUMAN CONSUMPTION BY ORAL INGESTION THAT : 13
(1) IS SUITABLE FOR BEVE RAGE PURPOSES ; 14
(2) CONTAINS 5 MILLIGRAMS OR LESS O F TETRAHYDROCANNABIN OL, 15
AS DEFINED IN § 36–1102 OF THIS TITLE, PER SERVING; 16
(3) IS CONTAINED AS A SI NGLE–SERVING PRODUCT ; 17
(4) IS LAWFULLY PRODUCED BY A CANNABIS LICENS EE; AND 18
(5) COMPLIES WITH : 19
(I) THE LABORATORY TESTI NG STANDARDS ESTABLI SHED 20
UNDER § 36–203 OF THIS TITLE; AND 21
(II) THE PACKAGING AND LA BELING STANDARDS EST ABLISHED 22
UNDER §§ 36–203 AND 36–203.1 OF THIS TITLE. 23
(h) “Cannabis licensee” means a business licensed by the Administration to 24
operate in the cannabis industry. 25
(i) “Cannabis products” means products that are composed of cannabis, cannabis 26
concentrate, cannabis extract, or other ingredients and are intended for use or 27
consumption, including CANNABINOID BEVERAGE S, edible products, oils, and tinctures. 28
(y) “On–site consumption establishment” means an entity licensed under § 29 HOUSE BILL 132 3
36–401(c)(4) of this title to distribute cannabis or cannabis products for on–site 1
consumption other than consumption by smoking indoors. 2
(EE–1) (1) “SINGLE–SERVING PRODUCT ” MEANS AN EDIBLE CANN ABIS 3
PRODUCT THAT : 4
(I) IS INDIVIDUALLY PACKAGED FOR RETAIL SALE; 5
(II) DOES NOT EXCEED THE SERVING LIMITS ESTAB LISHED BY 6
THE REGULATIONS OF T HE ADMINISTRATION ; AND 7
(III) IS INTENDED FOR IMME DIATE CONSUMPTION . 8
(2) “SINGLE–SERVING PRODUCT ” INCLUDES A CANNABINO ID 9
BEVERAGE. 10
36–404. 11
(g) (3) Application submissions for micro licenses AND ON –SITE 12
CONSUMPTION LICENSES under this subsection are limited to social equity applicants. 13
36–407. 14
(a) (1) A person shall obtain an on–site consumption license from the 15
Administration before operating a premises where cannabis may be consumed. 16
(2) The Administration may issue on –site consumption licenses 17
authorizing an entity to operate a licensed premises in which cannabis OR CANNABIS 18
PRODUCTS may be consumed, but not smoked indoors, in accordance with this title and 19
any regulations adopted under this title. 20
(3) An on–site consumption establishment may operate only if the political 21
subdivision where the business is located has issued a permit or license that expressly 22
allows the operation of the on–site consumption establishment. 23
(b) Subject to the limitations in § 36–405 of this subtitle, a political subdivision 24
may: 25
(1) prohibit the operation of on–site consumption establishments; 26
(2) prohibit or restrict the smoking or vaping of cannabis at on–site 27
consumption establishments; [or] 28
(3) adopt zoning and planning requirements for on–site consumption 29
establishments; OR 30 4 HOUSE BILL 132
(4) ESTABLISH HOURS OF O PERATION FOR ON –SITE CONSUMPTION 1
ESTABLISHMENTS . 2
(c) (1) An on–site consumption license authorizes an entity, FOR THE 3
PURPOSES OF ON –SITE CONSUMPTION , to: 4
(I) distribute cannabis or cannabis products [for on–site 5
consumption]; 6
(II) ACQUIRE CANNABIS OR CANNABIS PRODUCTS FR OM A 7
CANNABIS LICENSEE IN ACCORDANCE WITH THIS TITLE; 8
(III) REPACKAGE CANNABIS O R CANNABIS PRODUCTS FOR THE 9
PURPOSE OF CREATING SINGLE –SERVING PRODUCTS ; AND 10
(IV) PROCESS CANNABIS OR CANNABIS–INFUSED PRODUCTS . 11
(2) An on–site consumption license does not authorize the holder of the 12
license to[: 13
(i)] cultivate cannabis[; 14
(ii) process cannabis or cannabis–infused products; or 15
(iii) add cannabis to food prepared or served on the premises. 16
(d) A business that has average daily receipts from the sale of bakery goods that 17
are at least 50% of the average daily receipts of the business may apply for a license to 18
operate an on–site consumption establishment]. 19
(D) AN ON–SITE CONSUMPTION ESTABLISHMENT MAY AL SO OPERATE AS A 20
FOOD SERVICE FACILIT Y, AS DEFINED IN § 21–301 OF THE HEALTH – GENERAL 21
ARTICLE. 22
(E) AN ON–SITE CONSUMPTION EST ABLISHMENT SHALL COM PLY WITH THE 23
FOLLOWING STANDARDS WHEN PROCESSING , PREPARING, REPACKAGING , OR 24
INFUSING ANY CANNABI S OR CANNABIS PRODUC TS: 25
(1) MANUFACTURING STANDA RDS ESTABLISHED UNDE R § 36–203 OF 26
THIS TITLE; 27
(2) LABORATORY TESTING S TANDARDS ESTABLISHED UNDER § 28
36–203 OF THIS TITLE; AND 29 HOUSE BILL 132 5
(3) PACKAGING AND LABELI NG STANDARDS ESTABLI SHED UNDER §§ 1
36–203 AND 36–203.1 OF THIS TITLE. 2
[(e)] (F) The Administration shall: 3
(1) maintain a list of all on–site consumption establishments in the State; 4
and 5
(2) make the list available on its website. 6
[(f)] (G) An on–site consumption establishment may not: 7
(1) allow on–duty employees of the business to consume cannabis on the 8
licensed premises; 9
(2) distribute or allow the distribution of free samples of cannabis on the 10
licensed premises; 11
(3) allow the consumption of alcohol on the licensed premises; 12
(4) allow the smoking or vaping of tobacco or tobacco products on the 13
licensed premises; 14
(5) allow an activity on the licensed premises that would require an 15
additional license under this title, including growing[, processing,] or dispensing; 16
(6) allow the indoor smoking of cannabis or cannabis products on the 17
licensed premises; 18
(7) allow the use or consumption of cannabis by a patron who displays any 19
visible signs of intoxication; [or] 20
(8) admit onto the licensed premises an individual who is under the age of 21
21 years; 22
(9) ALLOW AN INDIVIDUAL TO CONSUME CANNABIS OR CANNABIS 23
PRODUCTS ON THE PREM ISES IF THE CANNABIS OR C ANNABIS PRODUCT WAS NOT 24
OBTAINED FROM THE ON –SITE CONSUMPTION EST ABLISHMENT ; 25
(10) ALLOW AN INDIVIDUAL TO REMOVE CANNABIS O R CANNABIS 26
PRODUCTS FROM THE PR EMISES OF THE ESTABL ISHMENT; OR 27
(11) SELL OR DISTRIBUTE CA NNABIS OR CANNABIS PRODUCTS TO AN 28
INDIVIDUAL THAT ARE INTENDED AS MORE THA N A SINGLE–SERVING PRODUCT . 29 6 HOUSE BILL 132
[(g)] (H) An on–site consumption establishment shall: 1
(1) require all employees to successfully complete an annual responsible 2
vendor training program authorized under this title; and 3
(2) ensure that the display and consumption of cannabis or cannabis 4
products are not visible from outside of the licensed premises. 5
[(h)] (I) (1) An on–site cannabis establishment shall educate consumers by 6
providing informational materials regarding the safe consumption of cannabis. 7
(2) The educational materials provided under paragraph (1) of this 8
subsection must be based on the requirements established by the Cannabis Public Health 9
Advisory Council established under § 13–4502 of the Health – General Article. 10
[(i)] (J) This section does not prohibit a county or municipality from adopting 11
additional requirements for education on the safe consumption of cannabis on the premises 12
of a licensed on–site consumption establishment. 13
[(j)] (K) A person may have an ownership interest in or control of, including the 14
power to manage and operate, two on–site consumption establishments licensed under this 15
section. 16
36–407.1. 17
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 18
INDICATED. 19
(2) “CANNABIS EVENT” MEANS AN EVENT THAT : 20
(I) INVOLVES THE CONSUMP TION OF CANNABIS PRO DUCTS BY 21
INDIVIDUALS ON THE P REMISES OF THE EVENT ; AND 22
(II) WAS AUTHORIZED BY THE ADMINISTRATION THROUG H A 23
CANNABIS EVENT REGIS TRATION. 24
(3) “CANNABIS EVENT REGISTRATION ” MEANS A TEMPORARY 25
REGISTRATION ISSUED BY THE ADMINISTRATION THAT A UTHORIZES A PERSON T O 26
HOLD A CANNABIS EVEN T. 27
(4) “VENDOR PERMIT ” MEANS A PERMIT ISSUE D BY THE 28
ADMINISTRATION TO A C ANNABIS LICENSEE THA T AUTHORIZES THE SAL E OR 29
DISTRIBUTION OF CANN ABIS PRODUCTS TO IND IVIDUALS AT A CANNAB IS EVENT. 30
HOUSE BILL 132 7
(B) (1) A PERSON SHALL OBTAIN A CANNA BIS EVENT REGISTRATI ON 1
FROM THE ADMINISTRATION BEFORE HOLDING A CANNABIS E VENT. 2
(2) THE ADMINISTRATION SHALL: 3
(I) MAINTAIN A LIST OF A LL CANNABIS EVENTS IN T HE STATE; 4
AND 5
(II) MAKE THE LIST AVAILABLE O N THE ADMINISTRATION ’S 6
WEBSITE. 7
(C) (1) A PERSON WHO HAS OBTAI NED A CANNABIS EVENT REGISTRATION 8
AND LEGAL CONTROL OF REAL PROPERTY THAT I S THE LOCATION OF TH E CANNABIS 9
EVENT MAY: 10
(I) ALLOW THE CONSUMPTIO N OF EDIBLE CANNABIS 11
PRODUCTS BY INDIVIDU ALS AT THE CANNABIS EVENT; 12
(II) ACQUIRE CANNABINOID BEVERAGES FOR RETAIL SALE OR 13
DISTRIBUTION TO INDI VIDUALS FOR CONSUMPT ION AT THE CANNABIS EVENT; AND 14
(III) ALLOW A HOLDER OF A VENDOR P ERMIT TO SELL OR 15
DISTRIBUTE SINGLE –SERVING PRODUCTS AT THE CANNABIS EVENT . 16
(2) A CANNABIS EVENT REGIS TRATION DOES NOT AUT HORIZE THE 17
HOLDER OF THE REGIST RATION TO CONDUCT AN ACTIVITY THAT WOULD REQUIRE 18
AN ADDITIONAL LICENS E UNDER THIS TITLE . 19
(D) (1) IN ORDER TO OBTAIN A CANNABIS EVENT REGIS TRATION UNDER 20
SUBSECTION (B) OF THIS SECTION , A PERSON SHALL PROVI DE THE 21
ADMINISTRATION WITH T HE FOLLOWING : 22
(I) GENERAL INFORMATION ABOUT TH E CANNABIS EVENT ; 23
(II) THE TIME, DATE, LOCATION, AND DURATION OF TH E 24
CANNABIS EVENT ; 25
(III) NOTICE OF AT LEAST 60 CALENDAR DAYS BEFORE THE 26
EVENT; AND 27
(IV) ANY OTHER INFORMATION THAT THE ADMINISTRATION 28
REQUIRES. 29
8 HOUSE BILL 132
(2) A CANNABIS EVENT AUTHO RIZED BY THE ADMINISTRATION 1
UNDER THIS SECTION S HALL BE LIMITED : 2
(I) TO A PERIOD OF 48 HOURS; AND 3
(II) TO 4 CONSECUTIVE DAYS FOR THE SAME OR SIMILAR EVENT 4
AT THE SAME OR APPRO XIMATE LOCATION . 5
(3) (I) A CANNABIS EVENT MAY NOT BE HEL D IN VIOLATION OF 6
THIS SUBSECTION . 7
(II) A CANNABIS EVENT REGISTRATION S HALL BE VOID IF THE 8
HOLDER OF THE REGIST RATION VIOLATES SUBP ARAGRAPH (I) OF THIS PARAGRAPH . 9
(E) (1) THE HOLDER OF A CANNA BIS EVENT REGISTRATI ON MAY NOT: 10
(I) ALLOW THE SMOKING OR VAPING OF CANNABIS O R 11
CANNABIS PRODUCTS AT THE CANNABIS EVENT ; 12
(II) ALLOW THE USE O R CONSUMPTION OF CAN NABIS BY AN 13
INDIVIDUAL WHO DISPL AYS ANY VISIBLE SIGN S OF INTOXICATION ; OR 14
(III) HOLD, OWN, OR CONTROL A CANNABI S LICENSE. 15
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 16
HOLDER OF A CANNABIS EVENT REGISTRATION F OR THE PURPOSE SPECIFIED 17
UNDER SUBSECTION (C)(1)(III) OF THIS SECTION MAY NOT: 18
1. ADMIT ONTO THE CANNA BIS EVENT PREMISES A N 19
INDIVIDUAL WHO IS UN DER THE AGE OF 21 YEARS; OR 20
2. ALLOW THE CONSUMPTIO N OF ALCOHOL ON THE 21
PREMISES OF THE CANN ABIS EVENT. 22
(II) THE PROHIBITIONS UNDE R SUBPARAGRAPH (I) OF THIS 23
PARAGRAPH DO NOT APP LY IF THE SALE, DISTRIBUTION, AND CONSUMPTION OF 24
CANNABIS PRODUCTS AR E RESTRICTED TO AN A REA WITHIN THE EVENT THAT: 25
1. PROHIBITS ACCESS TO INDIVIDUALS UNDER TH E AGE 26
OF 21 YEARS; 27
2. DOES NOT AUTHORIZE T HE SALE, DISTRIBUTION, OR 28
CONSUMPTION OF ALCOH OL; AND 29 HOUSE BILL 132 9
3. IS NOT VISIBLE FROM ANY PUBLIC PLACE OR 1
UNRESTRICTED AREA OF THE CANNABIS EVENT . 2
(F) (1) THE HOLDER OF A VENDO R PERMIT MAY SELL OR DISTRIBUTE 3
SINGLE–SERVING PRODUCTS TO INDIVIDUALS AT A CANNABIS EVENT . 4
(2) A CANNABIS LICENSEE SH ALL SUBMIT A REQUEST FOR A VENDOR 5
PERMIT TO THE ADMINISTRATION AT LEA ST 30 CALENDAR DAYS BEFORE THE 6
CANNABIS EVENT . 7
(3) NOTWITHSTANDING ANY O THER PROVISION OF LA W, THE 8
ADMINISTRATION SHAL L ISSUE VENDOR PERMI TS TO: 9
(I) SOCIAL EQUITY LICENS EES ON OR BEFORE JUNE 30, 2028; 10
AND 11
(II) SOCIAL EQUITY, DISPENSARY, ON–SITE CONSUMPTION , OR 12
PROCESSOR LICENSEES ON OR AFTER JULY 1, 2028. 13
(4) THE HOLDER OF A VENDO R PERMIT SHALL COMPL Y WITH: 14
(I) THE MANUFACTURING ST ANDARDS ESTABLISHED UNDER § 15
36–203 OF THIS TITLE; 16
(II) THE LABORATORY TESTI NG STANDARDS ESTABLI SHED 17
UNDER § 36–203 OF THIS TITLE; 18
(III) PACKAGING AND LABELI NG STANDARDS ESTABLI SHED 19
UNDER §§ 36–203 AND 36–203.1 OF THIS TITLE; AND 20
(IV) APPLICABLE REGULATIO NS ADOPTED UNDER THI S TITLE. 21
(G) (1) THE SALE OF CANNABIS AND CANNABIS PRODUCT S UNDER THIS 22
SECTION IS SUBJECT T O THE SALES AND USE TAX AT THE RATE APPL ICABLE TO 23
CANNABIS SALES UNDER § 11–104(K) OF THE TAX – GENERAL ARTICLE. 24
(2) THE LOCATION OF A CAN NABIS EVENT SHALL BE THE BASIS FOR 25
CALCULATING ANY AMOU NT OF THE SALES AND USE TAX DISTRIBUTED UNDER § 26
2–1302.2 OF THE TAX – GENERAL ARTICLE. 27
(H) (1) THE ADMINISTRATION SHALL CHARGE A $500 FEE FOR EACH DAY 28
THAT A CANNABIS EVENT IS HELD . 29 10 HOUSE BILL 132
(2) FOR A VENDOR PERMIT A T A CANNABIS EVENT , THE 1
ADMINISTRATION MAY NO T CHARGE A FEE OF MO RE THAN $5,000 FOR EVERY 2,000 2
CANNABIS EVENT ATTEN DEES. 3
(I) SUBJECT TO THE LIMITA TIONS IN § 36–405 OF THIS SUBTITLE , A 4
POLITICAL SUBDIVISIO N MAY: 5
(1) PROHIBIT OR RESTRICT THE AUTHORIZATION OF CANNABIS 6
EVENT REGISTRATIONS ; OR 7
(2) ASSESS AN ADDITIONAL FEE ON CANNABIS EVEN T REGISTRATIONS 8
THAT AUTHORIZE A CAN NABIS EVENT WITHIN T HE POLITICAL SUBDIVI SION. 9
(J) THE ADMINISTRATION , A POLITICAL SUBDIVISION, OR A LAW 10
ENFORCEMENT AGENCY , AS DEFINED IN § 3–201 OF THE PUBLIC SAFETY ARTICLE, 11
MAY ORDER THE IMMEDI ATE CESSATION OF A C ANNABIS EVENT IF : 12
(1) THE HOLDER OF A CANN ABIS EVENT REGISTRAT ION OR VENDOR 13
PERMIT SELLS OR DIST RIBUTES CANNABIS OR CANNABIS PRODUCTS IN V IOLATION 14
OF THIS TITLE; OR 15
(2) IT IS OTHERWISE NECE SSARY TO PROTECT THE IMMEDIATE 16
PUBLIC HEALTH , SAFETY, AND WELFARE OF THE C ANNABIS EVENT ATTEND EES AND 17
SURROUNDING COMMUNIT Y. 18
(K) A PERSON WHO HOLDS AN UNAUTHO RIZED CANNABIS EVENT IN 19
VIOLATION OF THIS SE CTION IS GUILTY OF A MISDEMEANOR AND ON C ONVICTION IS 20
SUBJECT TO A FINE NO T EXCEEDING $5,000. 21
(L) THE ADMINISTRATION SHALL ADOPT REGULATI ONS TO CARRY OUT 22
THIS SECTION. 23
SECTION 2. AND BE I T FURTHER ENACTED, That this Act shall take effect 24
October 1, 2025. 25