MCA proposes smoke‑free on‑site cannabis consumption and social equity priority for lounges and events

The Maryland Cannabis Administration presented House Bill 132 to the House Economic Matters Committee as a regulatory framework for on‑site consumption lounges and cannabis events, prioritizing social equity applicants and public health safeguards.

Lisonbee Butler of the MCA described a smoke‑free, tiered model for on‑site consumption that limits on‑site activity to edible products and encourages low‑dosage beverages. "Our model is a smoke free model... it doesn't allow indoor or outdoor smoking as we've written it," Butler said, explaining the MCA's interest in reducing secondhand smoke concerns and increasing opportunities for social equity applicants.

Audrey Johnson, executive director of the Office of Social Equity, said the bill gives social equity applicants first opportunity to establish on‑site consumption businesses and vendor permits for events. "By doing so, it helps level the playing field and ensures that those most impacted by past cannabis policies have a real chance to succeed in the industry," Johnson said.

Key provisions: HB132 creates a three‑tier event registration structure (cannabis‑friendly events without sales; events where hosts can serve cannabis beverages acquired from licensees; and events where licensee vendors may dispense edibles). On‑site consumption licenses would be reserved for social equity applicants; vendor permits for events would be limited to social equity licensees, according to MCA testimony. The bill requires on‑site businesses and event holders to follow testing protocols and adopt safety measures, such as limiting single‑serving sizes and plans to reduce impaired driving.

Policy debate: Advocates for allowing inhalable products at events and outdoor venues argued that flower and vapes account for most Maryland cannabis sales and that excluding them leaves consumers reliant on unregulated sources. Caroline Phillips, founder of the National Cannabis Festival, and Queen Ades of Reframe Health and Justice urged models to include controlled outdoor inhalable sales to reduce unregulated products at events.

Opponents and concerns: Veterans groups and patient advocates objected to the smoke‑free approach, saying inhalation is the primary method for many medical patients and that smoke‑free rules could deny them safe public spaces to consume. Shanita Lewis of Veterans Initiative 22 said the draft regulation may not create economically viable businesses for licensees and would exclude consumers who require inhalation. Others raised public safety concerns about edible dosing, delayed onset, impaired driving, and the inability of law enforcement to reliably detect current impairment.

Local control: The MCA emphasized local opt‑in authority and zoning controls, saying counties and municipalities can regulate hours, zoning and whether on‑site consumption may occur in their jurisdictions.

Ending: HB132 advances social equity and consumer safety priorities in the state's cannabis market while raising unresolved questions about inhalation access for patients, event models for inhalable products, and public safety safeguards. The bill drew broad stakeholder engagement and requests for amendments to clarify operational and safety standards; no committee vote is recorded in the transcript excerpt.