1. (a)

   1. (1) A person shall obtain an on-site consumption license from the Administration before operating a premises where cannabis may be consumed.
   2. (2) The Administration may issue on-site consumption licenses authorizing an entity to operate a licensed premises in which cannabis or cannabis products may be consumed, but not smoked indoors, in accordance with this title and any regulations adopted under this title.
   3. (3) An on-site consumption establishment may operate only if the political subdivision where the business is located has issued a permit or license that expressly allows the operation of the on-site consumption establishment.

2. (b) Subject to the limitations in § 36-405 of this subtitle, a political subdivision may:

   1. (1) prohibit the operation of on-site consumption establishments;
   2. (2) prohibit or restrict the smoking or vaping of cannabis at on-site consumption establishments;
   3. (3) adopt zoning and planning requirements for on-site consumption establishments; or
   4. (4) establish hours of operation for on-site consumption establishments.

3. (c)

   1. (1) An on-site consumption license authorizes an entity, for the purposes of on-site consumption, to:

      1. (i) distribute cannabis or cannabis products;
      2. (ii) acquire cannabis or cannabis products from a cannabis licensee in accordance with this title;
      3. (iii) repackage cannabis or cannabis products for the purpose of creating single-serving products; and
      4. (iv) process single-serving products.
   2. (2) An on-site consumption license does not authorize the holder of the license to cultivate cannabis.

4. (d)

   1. (1) Subject to paragraph (2) of this subsection, an on-site consumption establishment may also operate as a food service facility, as defined in § 21-301 of the Health--General Article.

   2. (2) Before operating as a food service facility, the on-site consumption establishment shall obtain from the political subdivision in which the on-site consumption establishment is located all necessary approvals for operating a food service facility, including:

      1. (i) building code permits;
      2. (ii) mechanical code permits;
      3. (iii) a use and occupancy certificate; and
      4. (iv) any other applicable permits or licenses.

5. (e) An on-site consumption establishment shall comply with the following standards when acting in accordance with subsection (c)(1) of this section:

   1. (1) manufacturing standards established under § 36-203 of this title;
   2. (2) laboratory testing standards established under § 36-203 of this title; and
   3. (3) packaging and labeling standards established under §§ 36-203 and 36-203.1 of this title.

6. (f) The Administration shall:

   1. (1) maintain a list of all on-site consumption establishments in the State; and
   2. (2) make the list available on its website.

7. (g) An on-site consumption establishment may not:

   1. (1) allow on-duty employees of the business to consume cannabis on the licensed premises;
   2. (2) distribute or allow the distribution of free samples of cannabis on the licensed premises;
   3. (3) allow the consumption of alcohol on the licensed premises;
   4. (4) allow the smoking or vaping of tobacco or tobacco products on the licensed premises;
   5. (5) allow an activity on the licensed premises that would require an additional license under this title, including growing or dispensing;
   6. (6) allow the indoor smoking of cannabis or cannabis products on the licensed premises;
   7. (7) allow the use or consumption of cannabis by a patron who displays any visible signs of intoxication;
   8. (8) admit onto the licensed premises an individual who is under the age of 21 years;
   9. (9) allow an individual to consume cannabis or cannabis products on the premises if the cannabis or cannabis product was not obtained from the on-site consumption establishment;
   10. (10) allow an individual to remove cannabis or cannabis products from the premises of the establishment; or
   11. (11) sell or distribute cannabis or cannabis products to an individual that are intended as more than a single-serving product.

8. (h) An on-site consumption establishment shall:

   1. (1) require all employees to successfully complete an annual responsible vendor training program authorized under this title; and
   2. (2) ensure that the display and consumption of cannabis or cannabis products are not visible from outside of the licensed premises.

9. (i)

   1. (1) An on-site cannabis establishment shall educate consumers by providing informational materials regarding the safe consumption of cannabis.
   2. (2) The educational materials provided under paragraph (1) of this subsection must be based on the requirements established by the Cannabis Public Health Advisory Council established under § 13-4502 of the Health--General Article.
10. (j) This section does not prohibit a county or municipality from adopting additional requirements for education on the safe consumption of cannabis on the premises of a licensed on-site consumption establishment.
11. (k) A person may have an ownership interest in or control of, including the power to manage and operate, two on-site consumption establishments licensed under this section.

Added by Acts 2023, c. 254, § 5, eff. May 3, 2023; Acts 2023, c. 255, § 5, eff. May 3, 2023. Amended by Acts 2024, c. 241, § 1, eff. April 25, 2024; Acts 2025, c. 120, § 1, eff. July 1, 2025.