Economic Matters Committee advances package of bills on consumer protections, cannabis, crypto and mortgages

Annapolis — On April 1 the Maryland House Economic Matters Committee voted to advance a package of Senate bills covering consumer protections, cannabis licensing, workers compensation funding, virtual-currency kiosks and mortgage law clarifications.

The committee moved nine bills to the floor, many with amendments. Committee members debated provisions including limits on automatic subscription renewals, whether to permit on-site cannabis consumption in the near term, clarification of liability and membership on the Uninsured Employers' Fund board, limits and labeling for cryptocurrency kiosks, and changes to mortgage licensing tied to court guidance about the secondary mortgage market.

The committee’s action matters because several measures alter regulatory definitions or funding mechanisms that affect businesses, consumers and state programs. For example, members approved clarifying language exempting certain entities from the state's mortgage-lender law, advanced changes that will fund reserves for the Uninsured Employers' Fund, and approved a new licensing framework for virtual-currency kiosks intended to distinguish them from ATMs.

Senate Bill 49: automatic renewals

Senate Bill 49, which establishes a regulatory framework for automatic renewals, was amended in committee to clarify termination procedures and to state that an entity or its affiliate regulated under the Maryland service-contract law is not subject to the statute. The committee adopted the amendment and moved the bill forward after a roll call. Committee discussion on the bill was brief; no substantive dissent was recorded in the transcript excerpt.

Senate Bill 215: cannabis on-site consumption

Senate Bill 215, the Maryland Cannabis Administration measure that would authorize on-site consumption licenses, was discussed at length but committee members indicated the bill removes event authorization and pauses a planned round of consumption-license issuance. A committee member said consumption licenses were effectively deferred so the General Assembly could consider a future, safer approach. The bill was moved forward with no amendments.

Senate Bill 219 and related Uninsured Employers' Fund items

Senate Bill 219, which increases an additional assessment the board of the Uninsured Employers' Fund (UEF) may direct the Workers' Compensation Commission to impose by 0.5 percentage points and requires the commission to designate a special monitor to assess the fund’s finances, moved out of committee. Members discussed how SB 219 pairs with other bills in the package that would require the UEF board to establish reserves; the committee noted the assessment mechanism discussed previously would fund those reserves. The committee approved SB 219 on a recorded vote.

Senate Bill 299: cannabis security definitions

Senate Bill 299—initially drafted to exempt certain cannabis-licensed security personnel from a criminal-history-records-check requirement—was amended in committee to exclude several entities from the definition of “security guard” and employer for purposes of that exemption. Members discussed conforming the House and Senate language and acknowledged the amendment incorporates provisions from a separate bill. The committee voted to move the bill favorably as amended.

Senate Bill 305: virtual-currency kiosks

Senate Bill 305 establishes a regulatory framework for virtual-currency kiosks and their operators. Committee discussion focused on consumer protections: committee members said kiosks should be clearly labeled as not ATMs and that transaction limits (discussed in committee as up to $2,000) and on-screen notices should help prevent consumer deception and fraud. Committee members also framed kiosks as a nationwide business model that needs state-level regulation. The bill moved out of committee on a roll call that recorded a small number of no votes.

Senate Bill 689: mortgage assumption in divorce

Senate Bill 689 would create a right to assume a mortgage following a divorce. The committee considered an amendment that clarifies retroactivity: the amendment, as explained in the hearing, would make the provision apply only to divorces occurring after the bill’s effective date while ensuring borrowers who obtained loans prior to the law remain covered if the divorce happens after enactment. Members discussed how the rule would interact with the secondary mortgage market; the bill moved favorably as amended.

Senate Bill 695 and Senate Bill 830: UEF board membership and information sharing

Senate Bill 695 modifies the membership of the Uninsured Employers' Fund board by expanding it from three to five members and adjusting qualification requirements (including two members with property-and-casualty insurance experience, one member with accounting or finance experience, one policyholder representative, and one from the general public); it also directs the board to establish reserves to meet possible losses. Committee members pressed on whether those reserves would be funded by the 0.5-percentage-point assessment authorized in SB 219. The committee approved SB 695 as amended.

Senate Bill 830 expands the list of entities authorized to receive information related to certain workers' compensation claims to include the UEF and the Subsequent Injury Fund. The committee approved the bill.

Senate Bill 1026: consumer credit, trusts and mortgage licensing

Senate Bill 1026 would limit the applicability of certain consumer-credit provisions of the Financial Institutions Article by defining “trust” and “passive trust” and exempting a passive trust from Maryland’s mortgage-lender law. Committee debate included a lengthy exchange about a court order affecting secondary mortgage licensing and the potential disruption to the secondary mortgage market without legislative clarification. A committee member described data showing Maryland foreclosure and “zombie mortgage” rates, saying that as of the first quarter of 2025 there were 65 so-called zombie mortgages out of roughly 68,970 mortgages and that the state foreclosure rate was about 0.19 percent; members cited those figures while discussing the scope of the problem the bill aims to address. The bill was moved favorably as amended.

Votes at a glance

- SB 49 (automatic renewals): amendment adopted; bill moved favorably. - SB 215 (cannabis on-site consumption; Maryland Cannabis Administration): no amendments; bill moved favorably. - SB 219 (UEF assessment and monitoring): bill moved favorably; members discussed linkage to UEF reserves. - SB 299 (cannabis security definitions): amended to exclude several entities; bill moved favorably as amended. - SB 305 (virtual-currency kiosks): discussion on labeling and consumer protections; bill moved favorably; recorded no votes noted for at least two delegates. - SB 689 (mortgage assumption in divorce): amendment clarified retroactivity to apply only to divorces after the effective date; bill moved favorably as amended. - SB 695 (UEF board membership and reserves): amended to expand board and require reserves; bill moved favorably as amended. - SB 830 (workers' compensation information sharing): bill moved favorably. - SB 1026 (trusts and mortgage licensing): amendment conformed to commissioner guidance and addressed court-ordered licensing concerns for the secondary mortgage market; bill moved favorably as amended.

Committee procedure and next steps

Most bills were considered with brief discussion, amendments and roll-call votes. Committee members asked staff and sponsors for clarifications on funding sources, enforcement mechanisms and how state authority interacts with federal or market practices. The committee chair indicated the bills that passed will proceed to the floor for further consideration.

Ending

The committee advanced the package without taking final floor action; the bills will be considered next by the House floor or by conference with the Senate where language must be reconciled when the versions differ. Several members requested follow-up information, including materials on enforcement for the kiosk proposal and on how mortgage-market practices would be affected by the trust clarification.