Maryland Lawmakers Advance Bill on Cannabis Lounge Rules and Employee Ownership

Maryland’s cannabis program is evolving again. Lawmakers just passed a bill that clarifies Maryland cannabis consumption lounge rules and creates a pathway for business owners to sell their companies to employees. While the legislation is still working its way through the process, the proposed changes are already generating buzz throughout the industry for their mix of structure and opportunity.

It’s a double win for structure and equity—laying the groundwork for a more accessible, well-regulated cannabis scene across the state.

Key Highlights

• Clear regulations for consumption lounges, including product limits and how they operate
• New temporary event permits allow for short-term cannabis events
• Employee ownership model introduced for existing cannabis businesses

Details on Maryland Cannabis Consumption Lounge Regulations

The bill establishes clearer guardrails for cannabis lounges, aiming to eliminate the gray areas that have held the sector back. According to the Maryland Cannabis Administration (MCA), these updates will help ensure consistency across operators and better protect public health.

Key points include:

• Product Restrictions: Only low-dose edibles and infused drinks (5mg THC or less per serving) can be served. Smoking and vaping remain off-limits.
• On-Site Rules: Patrons must buy and consume products on-site—no outside cannabis allowed.
• Food Service Option: Lounges can also operate as food service venues, selling non-infused snacks and drinks alongside cannabis items.

These measures are designed to balance adult access with safety and consistency, giving consumers and businesses alike a clearer roadmap.

Temporary Event Permits

In addition to lounges, the bill introduces a framework for regulated pop-up events where cannabis can be consumed. Highlights include:

• Permit Duration: Events can run for up to 48 hours over a span of four days.
• Vendor Partnerships: Event hosts must partner with licensed sellers approved by the Maryland Cannabis Administration (MCA).
• License Limits: Businesses that already hold retail, cultivation, or processing licenses can’t get event or lounge permits—intended to avoid vertical integration overlap.

It’s a step forward for cannabis culture in Maryland, creating more opportunities for social experiences without pushing into an unregulated free-for-all.

Promoting Employee Ownership in the Industry

One of the quieter but more meaningful parts of the bill: it allows cannabis business owners to sell their companies to employees.

This move opens doors for workers to gain equity in the businesses they’ve helped build—marking a shift toward more community-rooted ownership and potentially helping diversify leadership in Maryland’s cannabis economy.

Conclusion

With this legislation moving forward, Maryland is making its stance on cannabis much clearer—and more inclusive. From solidifying Maryland cannabis consumption lounge rules to promoting worker ownership, the state is balancing innovation with accountability.

As the bill advances through the legislature, the cannabis industry is watching closely. These changes could set the tone for other states fine-tuning their own cannabis laws in 2025 and beyond.