EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *sb0215* SENATE BILL 215 A3 5lr0129 (PRE–FILED) CF HB 132 By: Chair, Finance Committee (By Request – Maryland Cannabis Administration) Requested: October 7, 2024 Introduced and read first time: January 8, 2025 Assigned to: Finance Committee Report: Favorable with amendments Senate action: Adopted with floor amendments Read second time: February 26, 2025 CHAPTER ______ AN ACT concerning 1 Cannabis – On–Site Consumption Establishments and Cannabis Events Reform 2 – Revisions 3 FOR the purpose of extending the time period during which a holder of a certain cannabis 4 dispensary license may continue to deliver medical cannabis; repealing a certain 5 authorization to issue on–site consumption licenses during a certain round of 6 cannabis licensing; limiting application submissions for on–site consumption 7 licenses to social equity applicants under certain circumstances; authorizing a 8 political subdivision to establish hours of operation for on–site consumption 9 establishments; authorizing the holder of an on–site consumption license to 10 repackage and process cannabis and cannabis products certain single–serving 11 products under certain circumstances; establishing certain prohibitions for on–site 12 consumption establishments related to the sale, distribution, and consumption of 13 cannabis; altering a certain inventory requirement for dispensary licensees; altering 14 the circumstances under which a certain waiting period applies; providing that a 15 certain food sales exemption from the sales and use tax does not apply to the sale of 16 certain cannabinoid beverages; authorizing the holder of a certain cannabis event 17 registration established under this Act to hold certain cannabis events under certain 18 circumstances; establishing certain vendor permits for the sale or distribution of 19 cannabis products at cannabis events; authorizing political subdivisions to prohibit 20 or restrict the authorization of cannabis events, subject to certain limitations; and 21 generally relating to cannabis, on–site consumption establishments, and cannabis 22 events. 23 2 SENATE BILL 215 BY repealing and reenacting, without amendments, 1 Article – Alcoholic Beverages and Cannabis 2 Section 36–101(a), (c), (h), and (y) and 36–404(e) 3 Annotated Code of Maryland 4 (2024 Replacement Volume) 5 BY adding to 6 Article – Alcoholic Beverages and Cannabis 7 Section 36–101(c–1) and (ee–1) and 36–407.1 8 Annotated Code of Maryland 9 (2024 Replacement Volume) 10 BY repealing and reenacting, with amendments, 11 Article – Alcoholic Beverages and Cannabis 12 Section 36–101(i), 36–401(g), 36–404(g)(3), and 36–407 36–404(f) and (g), 36–407, 13 36–410, and 36–503 14 Annotated Code of Maryland 15 (2024 Replacement Volume) 16 BY repealing and reenacting, with amendments, 17 Article – Tax – General 18 Section 11–206(a)(3) 19 Annotated Code of Maryland 20 (2022 Replacement Volume and 2024 Supplement) 21 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22 That the Laws of Maryland read as follows: 23 Article – Alcoholic Beverages and Cannabis 24 36–101. 25 (a) In this title the following words have the meanings indicated. 26 (c) “Administration” means the Maryland Cannabis Administration established 27 under this title. 28 (C–1) “CANNABINOID BEVERAGE” MEANS A BEVERAGE INT ENDED FOR 29 HUMAN CONSUMPTION BY ORAL INGESTION THAT : 30 (1) IS SUITABLE FOR BEVE RAGE PURPOSES ; 31 (2) CONTAINS 5 MILLIGRAMS OR LESS O F TETRAHYDROCANNABIN OL, 32 AS DEFINED IN § 36–1102 OF THIS TITLE, PER SERVING; 33 (3) IS CONTAINED AS A SINGL E–SERVING PRODUCT ; 34 SENATE BILL 215 3 (4) IS LAWFULLY PRODUCED BY A CANNABIS LICENS EE; AND 1 (5) COMPLIES WITH : 2 (I) THE LABORATORY TESTI NG STANDARDS ESTABLI SHED 3 UNDER § 36–203 OF THIS TITLE; AND 4 (II) THE PACKAGING AND LA BELING STANDARDS ESTABLISHED 5 UNDER §§ 36–203 AND 36–203.1 OF THIS TITLE. 6 (h) “Cannabis licensee” means a business licensed by the Administration to 7 operate in the cannabis industry. 8 (i) “Cannabis products” means products that are composed of cannabis, cannabis 9 concentrate, cannabis extract, or other ingredients and are intended for use or 10 consumption, including CANNABINOID BEVERAGE S, edible products, oils, and tinctures. 11 (y) “On–site consumption establishment” means an entity licensed under § 12 36–401(c)(4) of this title to distribute cannabis or cannabis products for on–site 13 consumption other than consumption by smoking indoors. 14 (EE–1) (1) “SINGLE–SERVING PRODUCT ” MEANS AN EDIBLE CANN ABIS 15 PRODUCT THAT : 16 (I) IS INDIVIDUALLY PACK AGED FOR RETAIL SALE ; 17 (II) DOES NOT EXCEED THE SERVIN G LIMITS ESTABLISHED BY 18 THE REGULATIONS OF T HE ADMINISTRATION ; AND 19 (III) IS INTENDED FOR IMME DIATE CONSUMPTION . 20 (2) “SINGLE–SERVING PRODUCT ” INCLUDES A CANNABINO ID 21 BEVERAGE. 22 36–401. 23 (g) Notwithstanding any provisions of this title, the holder of a dispensary license 24 issued by the Natalie M. LaPrade Medical Cannabis Commission who converts the license 25 or a registrant with the Natalie M. LaPrade Medical Cannabis Commission may continue 26 to deliver medical cannabis until July 1, [2025] 2026. 27 36–404. 28 (e) For the second round of licensing, the Administration shall issue licenses in 29 accordance with subsection (f) or (g) of this section. 30 4 SENATE BILL 215 (f) (1) Subject to paragraph (2) of this subsection, if the Administration, in 1 consultation with the certification agency designated by the Board of Public Works under 2 § 14–303(b) of the State Finance and Procurement Article, the Governor’s Office of Small, 3 Minority, and Women Business Affairs, the General Assembly, and the Office of the 4 Attorney General, determines that a disparity study demonstrates a strong basis in 5 evidence of business discrimination against firms owned by minorities and women in the 6 Maryland cannabis market, the Administration shall issue a second round of licenses, 7 applying minimum licensing qualifications and employing remedial measures consistent 8 with constitutional requirements, for not more than: 9 (i) for standard licenses: 10 1. 25 grower licenses; 11 2. 25 processor licenses; and 12 3. 120 dispensary licenses; 13 (ii) for micro licenses: 14 1. 70 grower licenses; and 15 2. 70 processor licenses; AND 16 (iii) 10 incubator space licenses[; and 17 (iv) 15 on–site consumption licenses]. 18 (2) If the Administration, in consultation with the certification agency 19 designated by the Board of Public Works under § 14–303(b) of the State Finance and 20 Procurement Article, the Governor’s Office of Small, Minority, and Women Business 21 Affairs, the General Assembly, and the Office of the Attorney General, determines that a 22 lottery system employing remedial measures established in accordance with a disparity 23 study can be conducted consistent with constitutional requirements, the Administration 24 shall award licenses under paragraph (1) of this subsection through a lottery process that 25 employs remedial measures. 26 (g) (1) Subject to paragraphs (2) and (3) of this subsection, if the 27 Administration, in consultation with the certification agency designated by the Board of 28 Public Works under § 14–303(b) of the State Finance and Procurement Article, the 29 Governor’s Office of Small, Minority, and Women Business Affairs, the General Assembly, 30 and the Office of the Attorney General, determines that a disparity study does not 31 demonstrate a strong basis in evidence of business discrimination against firms owned by 32 minorities and women in the Maryland cannabis market, the Administration shall enter 33 each applicant that meets the minimum qualifications established by the Administration 34 into a lottery and issue to the applicants not more than: 35 SENATE BILL 215 5 (i) for standard licenses: 1 1. 25 grower licenses; 2 2. 25 processor licenses; and 3 3. 120 dispensary licenses; 4 (ii) for micro licenses: 5 1. 70 grower licenses; and 6 2. 70 processor licenses; AND 7 (iii) 10 incubator space licenses[; and 8 (iv) 15 on–site consumption licenses]. 9 (2) The Administration shall determine whether an application meets the 10 minimum qualifications for a lottery based on a pass–fail basis, as determined by the 11 Administration, after evaluating: 12 (i) a detailed operational plan for the safe, secure, and effective 13 cultivation, manufacture, or dispensing of cannabis; 14 (ii) a business plan demonstrating a likelihood of success and 15 sufficient business ability and experience on the part of the applicant, and providing for 16 appropriate employee working conditions; and 17 (iii) a detailed diversity plan. 18 (g) (3) Application submissions for micro licenses AND ON –SITE 19 CONSUMPTION LICENSES under this subsection are limited to social equity applicants. 20 36–407. 21 (a) (1) A person shall obtain an on–site consumption license from the 22 Administration before operating a premises where cannabis may be consumed. 23 (2) The Administration may issue on –site consumption licenses 24 authorizing an entity to operate a licensed premises in which cannabis OR CANNABIS 25 PRODUCTS may be consumed, but not smoked indoors, in accordance with this title and 26 any regulations adopted under this title. 27 6 SENATE BILL 215 (3) An on–site consumption establishment may operate only if the political 1 subdivision where the business is located has issued a permit or license that expressly 2 allows the operation of the on–site consumption establishment. 3 (b) Subject to the limitations in § 36–405 of this subtitle, a political subdivision 4 may: 5 (1) prohibit the operation of on–site consumption establishments; 6 (2) prohibit or restrict the smoking or vaping of cannabis at on–site 7 consumption establishments; [or] 8 (3) adopt zoning and planning requirements for on–site consumption 9 establishments; OR 10 (4) ESTABLISH HOURS OF O PERATION FOR ON –SITE CONSUMPTION 11 ESTABLISHMENTS . 12 (c) (1) An on–site consumption license authorizes an entity, FOR THE 13 PURPOSES OF ON –SITE CONSUMPTION , to: 14 (I) distribute cannabis or cannabis products [for on–site 15 consumption]; 16 (II) ACQUIRE CANNABIS OR CANNABIS PRODUCTS FR OM A 17 CANNABIS LICENSEE IN ACCORDANCE WITH THIS TITLE; 18 (III) REPACKAGE CANNABIS O R CANNABIS PRODUCTS FOR THE 19 PURPOSE OF CREATING SINGLE–SERVING PRODUCTS ; AND 20 (IV) PROCESS CANNABIS OR CANNABIS –INFUSED PRODUCTS 21 SINGLE–SERVING PRODUCTS . 22 (2) An on–site consumption license does not authorize the holder of the 23 license to[: 24 (i)] cultivate cannabis[; 25 (ii) process cannabis or cannabis–infused products; or 26 (iii) add cannabis to food prepared or served on the premises. 27 (d) A business that has average daily receipts from the sale of bakery goods that 28 are at least 50% of the average daily receipts of the business may apply for a license to 29 operate an on–site consumption establishment]. 30 SENATE BILL 215 7 (D) (1) AN SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , AN 1 ON–SITE CONSUMPTION EST ABLISHMENT MAY ALSO OPERATE AS A FOOD SE RVICE 2 FACILITY, AS DEFINED IN § 21–301 OF THE HEALTH – GENERAL ARTICLE. 3 (2) BEFORE OPERATING AS A FOOD SERVICE FACILIT Y, THE ON–SITE 4 CONSUMPTION ESTABLIS HMENT SHALL OBTAIN F ROM THE POLITICAL SU BDIVISION 5 IN WHICH THE ON –SITE CONSUMPTION EST ABLISHMENT IS LOCATE D ALL 6 NECESSARY APPROVALS FOR OPERATING A FOOD SERVICE FACILITY, INCLUDING: 7 (I) BUILDING CODE PERMIT S; 8 (II) MECHANICAL CODE PERM ITS; 9 (III) A USE AND OCCUPANCY CERTIFICATE; AND 10 (IV) ANY OTHER APPLICABLE PERMITS OR LICENSES . 11 (E) AN ON–SITE CONSUMPTION EST ABLISHMENT SHALL COM PLY WITH THE 12 FOLLOWING STANDARDS WHEN PROCESSING, PREPARING, REPACKAGING , OR 13 INFUSING ANY CANNABI S OR CANNABIS PRODUC TS ACTING IN ACCORDANCE WITH 14 SUBSECTION (C)(1) OF THIS SECTION: 15 (1) MANUFACTURING STANDARDS ESTABLISHE D UNDER § 36–203 OF 16 THIS TITLE; 17 (2) LABORATORY TESTING S TANDARDS ESTABLISHED UNDER § 18 36–203 OF THIS TITLE; AND 19 (3) PACKAGING AND LABELI NG STANDARDS ESTABLI SHED UNDER §§ 20 36–203 AND 36–203.1 OF THIS TITLE. 21 [(e)] (F) The Administration shall: 22 (1) maintain a list of all on–site consumption establishments in the State; 23 and 24 (2) make the list available on its website. 25 [(f)] (G) An on–site consumption establishment may not: 26 (1) allow on–duty employees of the business to consume cannabis on the 27 licensed premises; 28 (2) distribute or allow the distribution of free samples of cannabis on the 29 licensed premises; 30 8 SENATE BILL 215 (3) allow the consumption of alcohol on the licensed premises; 1 (4) allow the smoking or vaping of tobacco or tobacco products on the 2 licensed premises; 3 (5) allow an activity on the licensed premises that would require an 4 additional license under this title, including growing[, processing,] or dispensing; 5 (6) allow the indoor smoking of cannabis or cannabis products on the 6 licensed premises; 7 (7) allow the use or consumption of cannabis by a patron who displays any 8 visible signs of intoxication; [or] 9 (8) admit onto the licensed premises an individual who is under the age of 10 21 years; 11 (9) ALLOW AN INDI VIDUAL TO CONSUME CA NNABIS OR CANNABIS 12 PRODUCTS ON THE PREM ISES IF THE CANNABIS OR CANNABIS PRODUCT WAS NOT 13 OBTAINED FROM THE ON –SITE CONSUMPTION EST ABLISHMENT ; 14 (10) ALLOW AN INDIVIDUAL TO REMOVE CANNABIS O R CANNABIS 15 PRODUCTS FROM THE PR EMISES OF THE ES TABLISHMENT ; OR 16 (11) SELL OR DISTRIBUTE C ANNABIS OR CANNABIS PRODUCTS TO AN 17 INDIVIDUAL THAT ARE INTENDED AS MORE THA N A SINGLE–SERVING PRODUCT . 18 [(g)] (H) An on–site consumption establishment shall: 19 (1) require all employees to successfully complete an annual responsible 20 vendor training program authorized under this title; and 21 (2) ensure that the display and consumption of cannabis or cannabis 22 products are not visible from outside of the licensed premises. 23 [(h)] (I) (1) An on–site cannabis establishment shall educate consumers by 24 providing informational materials regarding the safe consumption of cannabis. 25 (2) The educational materials provided under paragraph (1) of this 26 subsection must be based on the requirements established by the Cannabis Public Health 27 Advisory Council established under § 13–4502 of the Health – General Article. 28 [(i)] (J) This section does not prohibit a county or municipality from adopting 29 additional requirements for education on the safe consumption of cannabis on the premises 30 of a licensed on–site consumption establishment. 31 SENATE BILL 215 9 [(j)] (K) A person may have an ownership interest in or control of, including the 1 power to manage and operate, two on–site consumption establishments licensed under this 2 section. 3 36–410. 4 (a) Beginning July 1, 2023, a cannabis licensee that is operating a dispensary 5 shall: 6 (1) ensure that it has adequate supply for qualifying patients and 7 caregivers; 8 (2) set aside operating hours or dedicated service lines to serve only 9 qualifying patients and caregivers; and 10 (3) AS SUPPLY BECOMES AV AILABLE AS DETERMINE D BY THE 11 ADMINISTRATION , ensure that at least 25% of cannabis and cannabis products in the 12 dispensary are from social equity licensees [and growers and processors] that do not share 13 common ownership with the dispensary. 14 (b) Except as provided in subsection (d) of this section, a licensed dispensary may 15 not locate within: 16 (1) 500 feet of: 17 (i) a pre–existing primary or secondary school in the State, or a 18 licensed child care center or registered family child care home under Title 9.5 of the 19 Education Article; or 20 (ii) a pre–existing playground, recreation center, library, public 21 park, or place of worship; or 22 (2) 1,000 feet of another dispensary under this title. 23 (c) (1) Except as provided in paragraph (2) of this subsection, a political 24 subdivision may adopt an ordinance reducing, but not increasing, the distance 25 requirements under subsection (b) of this section. 26 (2) A political subdivision may by ordinance increase the distance 27 limitation for dispensaries under subsection (b)(2) of this section to not more than one–half 28 mile. 29 (d) The distance requirements under subsection (b) of this section do not apply to 30 a dispensary license that was: 31 (1) converted under § 36–401(b)(1)(ii) of this subtitle; and 32 10 SENATE BILL 215 (2) properly zoned and operating before July 1, 2023. 1 (e) A political subdivision may not adopt an ordinance establishing zoning 2 requirements for licensed dispensaries that are more restrictive than zoning requirements 3 for a retail dealer licensed under this article. 4 (f) A political subdivision may not adopt an ordinance: 5 (1) establishing a zoning requirement for a licensed grower cultivating 6 cannabis exclusively outdoors in an area zoned only for agricultural use that is more 7 restrictive than any zoning requirements that existed on June 30, 2023, governing a hemp 8 farm registered under Title 14 of the Agriculture Article in the political subdivision; or 9 (2) prohibiting outdoor cannabis cultivation on a premises that was 10 properly zoned for outdoor cannabis cultivation on or before June 30, 2023. 11 (g) A political subdivision may: 12 (1) by ordinance, establish a distance limitation for dispensaries of up to 13 100 feet from an area zoned for residential use; or 14 (2) apply to dispensaries the distance limitation for licensed alcoholic 15 beverage retailers from an area zoned for residential use. 16 (h) A political subdivision shall grant a waiver to an ordinance that provides a 17 distance requirement for dispensaries under this section for a licensed dispensary that was 18 in operation before April 1, 2024. 19 (I) A POLITICAL SUBDIVISIO N THAT HAS NOT ADOPT ED AN ORDINANCE 20 UNDER SUBSECTION (C) OF THIS SECTION BEFO RE JANUARY JULY 1, 2025, IS 21 SUBJECT TO THE DISTA NCE REQUIREMEN TS UNDER SUBSECTION (B) OF THIS 22 SECTION. 23 36–503. 24 (a) A cannabis license granted under this title is not transferable except as 25 provided in this section. 26 (b) To transfer ownership or control of a license issued under this title, a licensee: 27 (1) shall submit to the Administration: 28 (i) an application fee in an amount to be determined by the 29 Administration in accordance with this subtitle; and 30 (ii) an application developed by the Administration; and 31 SENATE BILL 215 11 (2) must meet the requirements for transfer of ownership or control 1 established by the Administration under this title. 2 (c) (1) A cannabis licensee, including a cannabis licensee whose license was 3 converted in accordance with § 36–401 of this title, may not transfer ownership or control 4 of the license for a period of at least 5 years following licensure. 5 (2) The 5–year period specified in paragraph (1) of this subsection does not 6 include the time period that a business is considered by the Administration to be in a 7 preapproved licensure status. 8 (3) The limitations under this subsection do not apply to: 9 (I) transfers as a result of the disability, incapacity, or death of the 10 owner of a cannabis license, bankruptcy or receivership in accordance with a lending 11 agreement of a cannabis licensee, or court order; OR 12 (II) THE SALE OF A CANNAB IS LICENSEE TO THE L ICENSEE’S 13 EMPLOYEES THROUGH AN EMPLOYEE STOCK OWNER SHIP PLAN AS DEFINED IN § 14 407(D)(6)(A) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974. 15 (4) The limitations under this subsection do not apply to a transfer of 16 ownership that is the subject of a legally binding settlement agreement resulting from 17 litigation commenced on or before January 1, 2023. 18 36–407.1. 19 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 20 INDICATED. 21 (2) “CANNABIS EVENT ” MEANS AN EVENT THAT : 22 (I) INVOLVES THE CONSUMP TION OF CANNABIS PRO DUCTS BY 23 INDIVIDUALS ON THE P REMISES OF THE EVENT ; AND 24 (II) WAS AUTHORIZED BY TH E ADMINISTRATION THROUG H A 25 CANNABIS EVENT REGIS TRATION. 26 (3) “CANNABIS EVENT REGIST RATION” MEANS A TEMPORARY 27 REGISTRATION ISSUED BY THE ADMINISTRATION THAT A UTHORIZES A PERSON T O 28 HOLD A CANNABIS EVEN T. 29 12 SENATE BILL 215 (4) “VENDOR PERMIT ” MEANS A PERMIT ISSUE D BY THE 1 ADMINISTRATION TO A C ANNABIS LICENSEE THA T AUTHORIZES THE SAL E OR 2 DISTRIBUTION OF CANN ABIS PRODUCTS TO IND IVIDUALS AT A CANNAB IS EVENT. 3 (B) (1) A PERSON SHALL OBTAIN A CANNABIS EVENT REG ISTRATION 4 FROM THE ADMINISTRATION BEFORE HOLDING A CANNABIS E VENT. 5 (2) THE ADMINISTRATION SHALL : 6 (I) MAINTAIN A LIST OF A LL CANNABIS EVENTS IN T HE STATE; 7 AND 8 (II) MAKE THE LIST AVAILA BLE ON THE ADMINISTRATION ’S 9 WEBSITE. 10 (C) (1) A PERSON WHO HAS OBTAI NED A CANNABIS EVENT REGISTRATION 11 AND LEGAL CONTROL OF REAL PROPERTY THAT I S THE LOCATION OF TH E CANNABIS 12 EVENT MAY: 13 (I) ALLOW THE CONSUMPTIO N OF EDIBLE CANNABIS 14 PRODUCTS BY INDIVIDU ALS AT THE CANNABIS EVENT; 15 (II) ACQUIRE CANNABINOID BEVERAGES FOR RETAIL SALE OR 16 DISTRIBUTION TO INDI VIDUALS FOR CONSUMPT ION AT THE CANNABIS EVENT; AND 17 (III) ALLOW A HOLDER OF A VENDOR PERMIT TO SELL OR 18 DISTRIBUTE SINGLE –SERVING PRODUCTS AT THE CANNABIS EVENT . 19 (2) A CANNABIS EVENT REGIS TRATION DOES NOT AUT HORIZE THE 20 HOLDER OF THE REGIST RATION TO CONDUCT AN ACTIVITY THAT WOULD REQUIRE 21 AN ADDITIONAL LICENS E UNDER THIS TITLE . 22 (D) (1) IN ORDER TO OBTAIN A CANNABIS EVENT REGIS TRATION UNDER 23 SUBSECTION (B) OF THIS SECTION , A PERSON SHALL PROVI DE THE 24 ADMINISTRATION WITH T HE FOLLOWING : 25 (I) GENERAL INFORMATION ABOUT THE CANNABIS E VENT; 26 (II) THE TIME, DATE, LOCATION, AND DURATION OF THE 27 CANNABIS EVENT ; 28 (III) NOTICE OF AT LEAST 60 CALENDAR DAYS BEFORE THE 29 EVENT; AND 30 SENATE BILL 215 13 (IV) ANY OTHER INFORMATIO N THAT THE ADMINISTRATION 1 REQUIRES. 2 (2) A CANNABIS EVENT AUTHO RIZED BY THE ADMINISTRATION 3 UNDER THIS SECTION S HALL BE LIMITED : 4 (I) TO A PERIOD OF 48 HOURS; AND 5 (II) TO 4 CONSECUTIVE DAYS FOR THE SAME OR SIMILAR EVENT 6 AT THE SAME OR APPRO XIMATE LOCATION . 7 (3) (I) A CANNABIS EVENT MAY N OT BE HELD IN VIOLAT ION OF 8 THIS SUBSECTION . 9 (II) A CANNABIS EVENT REGIS TRATION SHALL BE VOID IF THE 10 HOLDER OF THE REGIST RATION VIOLATES SUBP ARAGRAPH (I) OF THIS PARAGRAPH . 11 (E) (1) THE HOLDER OF A CANNA BIS EVENT REGISTRATI ON MAY NOT: 12 (I) ALLOW THE SMOKING OR VAPING OF CANNABIS O R 13 CANNABIS PRODUCTS AT THE CANNABIS EVENT ; 14 (II) ALLOW TH E USE OR CONSUMPTION OF CANNABIS BY AN 15 INDIVIDUAL WHO DISPL AYS ANY VISIBLE SIGN S OF INTOXICATION ; OR 16 (III) HOLD, OWN, OR CONTROL A CANNABI S LICENSE. 17 (2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , THE 18 HOLDER OF A CANNABIS EVENT REGISTRATION FOR THE PURPOSE SPEC IFIED 19 UNDER SUBSECTION (C)(1)(III) OF THIS SECTION MAY NOT: 20 1. ADMIT ONTO THE CANNA BIS EVENT PREMISES A N 21 INDIVIDUAL WHO IS UN DER THE AGE OF 21 YEARS; OR 22 2. ALLOW THE CONSUMPTIO N OF ALCOHOL ON THE 23 PREMISES OF THE CANN ABIS EVENT. 24 (II) THE PROHIBITIONS UNDE R SUBPARAGRAPH (I) OF THIS 25 PARAGRAPH DO NOT APP LY IF THE SALE, DISTRIBUTION, AND CONSUMPTION OF 26 CANNABIS PRODUCTS AR E RESTRICTED TO AN A REA WITHIN THE EVENT THAT: 27 1. PROHIBITS ACCESS TO INDIVIDUALS UNDER TH E AGE 28 OF 21 YEARS; 29 14 SENATE BILL 215 2. DOES NOT AUTHORIZE T HE SALE, DISTRIBUTION, OR 1 CONSUMPTION OF ALCOH OL; AND 2 3. IS NOT VISIBLE FROM ANY PUBLIC PLACE OR 3 UNRESTRICTED AREA OF THE CANNABIS EVENT . 4 (F) (1) THE HOLDER OF A VENDO R PERMIT MAY SELL OR DISTRIBUTE 5 SINGLE–SERVING PRODUCTS TO INDIVIDU ALS AT A CANNABIS EV ENT. 6 (2) A CANNABIS LICENSEE SH ALL SUBMIT A REQUEST FOR A VENDOR 7 PERMIT TO THE ADMINISTRATION AT LEA ST 30 CALENDAR DAYS BEFORE THE 8 CANNABIS EVENT . 9 (3) NOTWITHSTANDING ANY O THER PROVISION OF LA W, THE 10 ADMINISTRAT ION SHALL ISSUE VEND OR PERMITS TO: 11 (I) SOCIAL EQUITY LICENS EES ON OR BEFORE JUNE 30, 2028; 12 AND 13 (II) SOCIAL EQUITY, DISPENSARY, ON–SITE CONSUMPTION , OR 14 PROCESSOR LICENSEES ON OR AFTER JULY 1, 2028. 15 (4) THE HOLDER OF A VENDO R PERMIT SHALL COMPL Y WITH: 16 (I) THE MANUFACTURING ST ANDARDS ESTABLISHED UNDER § 17 36–203 OF THIS TITLE; 18 (II) THE LABORATORY TESTI NG STANDARDS ESTABLI SHED 19 UNDER § 36–203 OF THIS TITLE; 20 (III) PACKAGING AND LABELI NG STANDARDS ESTABLI SHED 21 UNDER §§ 36–203 AND 36–203.1 OF THIS TITLE; AND 22 (IV) APPLICABLE REGULATIO NS ADOPTED UNDER THI S TITLE. 23 (G) (1) THE SALE OF CANNABIS AND CANNABIS PRODUCT S UNDER THIS 24 SECTION IS SUBJECT T O THE SALES AND USE TAX AT THE RATE APPL ICABLE TO 25 CANNABIS SALES UNDER § 11–104(K) OF THE TAX – GENERAL ARTICLE. 26 (2) THE LOCATION OF A CAN NABIS EVENT SHALL BE THE BASIS FOR 27 CALCULATING ANY AMOU NT OF THE SALES AND USE TAX DISTRIBUTED UNDER § 28 2–1302.2 OF THE TAX – GENERAL ARTICLE. 29 SENATE BILL 215 15 (H) (1) THE ADMINISTRATION SHALL CHARGE A $500 FEE FOR EACH DAY 1 THAT A CANNABIS EVENT IS HELD. 2 (2) FOR A VENDOR PERMIT A T A CANNABIS EVENT , THE 3 ADMINISTRATION MAY NO T CHARGE A FEE OF MO RE THAN $5,000 FOR EVERY 2,000 4 CANNABIS EVENT ATTEN DEES. 5 (I) SUBJECT TO THE LIMITA TIONS IN § 36–405 OF THIS SUBTITLE , A 6 POLITICAL SUBDIVISION MAY: 7 (1) PROHIBIT OR RESTRICT THE AUTHORIZATION OF CANNABIS 8 EVENT REGISTRATIONS ; OR 9 (2) ASSESS AN ADDITIONAL FEE ON CANNABIS EVEN T REGISTRATIONS 10 THAT AUTHORIZE A CAN NABIS EVENT WITHIN T HE POLITICAL SUBDIVI SION. 11 (J) THE ADMINISTRATION , A POLITICAL SUBDIVISION , OR A LAW 12 ENFORCEMENT AGENCY , AS DEFINED IN § 3–201 OF THE PUBLIC SAFETY ARTICLE, 13 MAY ORDER THE IMMEDI ATE CESSATION OF A C ANNABIS EVENT IF : 14 (1) THE HOLDER OF A CANN ABIS EVENT REGISTRAT ION OR VENDOR 15 PERMIT SELLS OR DIST RIBUTES CANNABIS OR CANNABIS PRODUCTS IN VIOLATIO N 16 OF THIS TITLE; OR 17 (2) IT IS OTHERWISE NECE SSARY TO PROTECT THE IMMEDIATE 18 PUBLIC HEALTH , SAFETY, AND WELFARE OF THE C ANNABIS EVENT ATTEND EES AND 19 SURROUNDING COMMUNIT Y. 20 (K) A PERSON WHO HOLDS AN UNAUTHORIZED CANNABIS EVENT IN 21 VIOLATION OF THIS SE CTION IS GUILTY OF A MISDEMEANOR AND ON C ONVICTION IS 22 SUBJECT TO A FINE NO T EXCEEDING $5,000. 23 (L) THE ADMINISTRATION SHALL ADOPT REGULATIONS TO CARRY OUT 24 THIS SECTION. 25 Article – Tax – General 26 11–206. 27 (a) (3) (i) “Food” means food for human consumption. 28 (ii) “Food” includes the following foods and their products: 29 1. beverages, including coffee, coffee substitutes, cocoa, fruit 30 juices, and tea; 31 16 SENATE BILL 215 2. condiments; 1 3. eggs; 2 4. fish, meat, and poultry; 3 5. fruit, grain, and vegetables; 4 6. milk, including ice cream; and 5 7. sugar. 6 (iii) “Food” does not include: 7 1. an alcoholic beverage as defined in § 5–101 of this article; 8 2. a soft drink or carbonated beverage; [or] 9 3. A CANNABINOID BEVERA GE AS DEFINED IN § 36–101 10 OF THE ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE; OR 11 4. candy or confectionery. 12 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 13 October July 1, 2025. 14 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.