EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0699* SENATE BILL 699 A3 4lr3175 CF 4lr3433 By: Senator M. Washington Introduced and read first time: January 29, 2024 Assigned to: Finance and Budget and Taxation A BILL ENTITLED AN ACT concerning 1 Cannabis – Community Reinvestment and Repair Fund – Distribution and Use 2 of Funds for Baltimore City 3 FOR the purpose of altering the process for distributing the Community Reinvestment and 4 Repair Fund to Baltimore City by allocating certain funds to the Baltimore City 5 Comptroller under certain circumstances; establishing an Equitable Community 6 Investment Council in each Baltimore City State legislative district; requiring each 7 council to adopt bylaws by a certain date and to develop certain plans to allocate 8 certain funds through certain grants to community–based organizations for certain 9 services and programs; requiring the Baltimore City Comptroller to distribute 10 certain funds in a certain manner; and generally relating to the Community 11 Reinvestment and Repair Fund and the distribution and use of funds for Baltimore 12 City. 13 BY repealing and reenacting, without amendments, 14 Article – Alcoholic Beverages and Cannabis 15 Section 1–322(a)(1) 16 Annotated Code of Maryland 17 (2016 Volume and 2023 Supplement) 18 BY repealing and reenacting, with amendments, 19 Article – Alcoholic Beverages and Cannabis 20 Section 1–322(b) 21 Annotated Code of Maryland 22 (2016 Volume and 2023 Supplement) 23 BY adding to 24 Article – Alcoholic Beverages and Cannabis 25 Section 1–324 26 Annotated Code of Maryland 27 (2016 Volume and 2023 Supplement) 28 2 SENATE BILL 699 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 That the Laws of Maryland read as follows: 2 Article – Alcoholic Beverages and Cannabis 3 1–322. 4 (a) (1) There is a Community Reinvestment and Repair Fund. 5 (b) (1) (I) [Based] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF 6 THIS PARAGRAPH , BASED on the percentage allocable to each county determined by the 7 Office of Social Equity and reported by the Office to the Comptroller on or before July 31 8 each year, the Comptroller shall distribute funds from the Fund to each county in an 9 amount that, for the period from July 1, 2002, to January 1, 2023, both inclusive, is 10 proportionate to the total number of cannabis possession charges in the county compared 11 to the total number of cannabis possession charges in the State. 12 (II) 1. FOR BALTIMORE CITY, THE COMPTROLLER SHALL 13 DISTRIBUTE FUNDS FRO M THE FUND TO THE BALTIMORE CITY COMPTROLLER , 14 WHO SHALL DISTRIBUTE THE FUNDS IN ACCORDANCE WITH § 1–324 OF THIS 15 SUBTITLE. 16 2. THE BALTIMORE CITY COMPTROLLER MAY RETAIN 17 UP TO 2% OF THE FUNDS RECEIVED UNDER SUBSU BPARAGRAPH 1 OF THIS 18 SUBPARAGRAPH TO COVER THE DIRECT AND INDIRECT COSTS A SSOCIATED WITH 19 ADMINISTERING THE DI STRIBUTING OF THE FUNDS. 20 (2) (i) [Subject] EXCEPT FOR BALTIMORE CITY, SUBJECT to the 21 limitations under subsection (a)(6) of this section, each county shall adopt a law 22 establishing the purpose for which money received from the Fund may be used. 23 (ii) 1. [On] SUBJECT TO SUBSUBPARA GRAPH 2 OF THIS 24 SUBPARAGRAPH , ON or before December 1 every 2 years, beginning in 2024, each political 25 subdivision that receives funds from the Fund under paragraph (1) of this subsection shall 26 submit a report to the Governor and, in accordance with § 2–1257 of the State Government 27 Article, the Senate Budget and Taxation Committee and the House Appropriations 28 Committee on how funds received from the Fund were spent during the immediately 29 preceding 2 fiscal years. 30 2. FOR BALTIMORE CITY, THE BALTIMORE CITY 31 COMPTROLLER SHALL SUB MIT THE REPORT REQUI RED UNDER SUBSUBPARA GRAPH 32 1 OF THIS SUBPARAGRAPH . 33 1–324. 34 SENATE BILL 699 3 (A) IN THIS SECTION , “COUNCIL” MEANS AN EQUITABLE COMMUNITY 1 INVESTMENT COUNCIL. 2 (B) (1) THERE IS AN EQUITABLE COMMUNITY INVESTMENT COUNCIL IN 3 EACH STATE LEGISLATIVE DIS TRICT LOCATED WHOLLY , OR IN PART, IN BALTIMORE 4 CITY. 5 (2) THE PURPOSE OF EACH COUNCIL IS TO DISBURSE THROUGH 6 GRANTS COMMUNITY REINVESTMENT AND REPAIR FUNDS DISTRIBUTED UNDER § 7 1–322 OF THIS SUBTITLE . 8 (C) (1) EACH COUNCIL CONSISTS OF THE FOLLOWING MEMBERS : 9 (I) ONE MEMBER OF THE SENATE WHO REPRESENTS THE 10 DISTRICT; 11 (II) ONE MEMBER OF THE HOUSE OF DELEGATES WHO 12 REPRESENTS THE DISTR ICT, APPOINTED BY THE SPEAKER OF THE HOUSE; AND 13 (III) THE FOLLOWING MEMBERS APPOINTED BY THE GOVERNOR, 14 IN CONSULTATION WITH THE OFFICE OF SOCIAL EQUITY: 15 1. AT LEAST THREE REPRE SENTATIVES FROM 16 ORGANIZATIONS LED BY INDIVIDUALS FROM DISPROPORTIONATELY IMPACTED 17 AREAS AS DEFINED IN § 36–101 OF THIS ARTICLE; 18 2. AT LEAST TWO YOUNG ADULT ME MBERS BETWEEN 19 THE AGES OF 18 TO 24; 20 3. AT LEAST TWO REPRESE NTATIVES FROM NONPRO FIT 21 HUMAN SERVICES OR CO MMUNITY DEVELOPMENT ORGANIZATIONS THAT B ENEFIT 22 TRADITIONALLY UNDERS ERVED RESIDENTS ; AND 23 4. UP TO SEVEN REPRESEN TATIVES OF R ECOGNIZED 24 COMMUNITY ASSOCIATIO NS WITHIN THE DISTRI CT. 25 (2) EACH COUNCIL SHALL HAVE AT LEAST 15 BUT NOT MORE THAN 17 26 MEMBERS. 27 (3) FOLLOWING THE INITIAL APPOINTMENT OF THE MEMBERS OF A 28 COUNCIL UNDER PARAGRAPH (1) OF THIS SUBSECTION , THE COUNCIL SHALL 29 4 SENATE BILL 699 DETERMINE THE APPOIN TMENT OF MEMBERS OF THE COUNCIL UNDER PARAGRAPH 1 (1)(III) OF THIS SUBSECTION . 2 (4) (I) THE TERM OF A MEMBER : 3 1. APPOINTED BY THE GOVERNOR UNDER PARAGR APH 4 (1)(III) OF THIS SUBSECTION IS 2 YEARS; AND 5 2. BEGINNING JULY 1, 2026, APPOINTED BY THE 6 COUNCIL UNDER PARAGRAPH (3) OF THIS SUBSECTION MAY BE NOT LONGER THAN 7 3 YEARS. 8 (II) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE 9 UNTIL A SUCCESSOR IS APPOINTED AND QUALIF IES. 10 (III) A MEMBER WHO IS APPOINTED AFTER A TE RM HAS BEGUN 11 SERVES ONLY FOR THE REST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINTED 12 AND QUALIFIES. 13 (5) A MEMBER OF A COUNCIL: 14 (I) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE 15 COUNCIL; BUT 16 (II) IS ENTITLED TO REIMB URSEMENT FOR EXPENSES UNDER 17 THE STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE 18 BUDGET. 19 (D) (1) EACH COUNCIL SHALL: 20 (I) ADOPT BYLAWS NO T LATER THAN SEPTEMBER 1, 2024; AND 21 (II) DEVELOP A SUSTAINABL E GOVERNANCE PLAN AN D 22 PROGRAM TO ALLOCATE F UNDS THROUGH GRANTS TO COMMUNITY –BASED 23 ORGANIZATIONS FOR SE RVICES AND PROGRAMS CONSISTENT WITH THE EQUITY 24 PRINCIPLES FOR PARTI CIPATION AND OUTCOME S UNDER § 1–322 OF THIS 25 SUBTITLE. 26 (2) ELIGIBLE EXPENDITURES FOR GRANT FUNDING UN DER THIS 27 SUBSECTION INCLUDE : 28 (I) BEHAVIORAL HEALTH CR ISIS RESPONSE SERVIC ES; 29 SENATE BILL 699 5 (II) EDUCATION AND AFTER –SCHOOL PROGRAMS ; 1 (III) TRUANCY AND ABSENTEE ISM INTERVENTION PRO GRAMS; 2 (IV) HOUSING AND HOMELESS NESS PREVENTION ; 3 (V) TRANSPORTATION IMPRO VEMENTS IN HIGH –DENSITY 4 TRANSIT CORRIDORS; 5 (VI) JOB TRAINING AND WOR KFORCE DEVELOPMENT ; 6 (VII) COMMUNITY SERVICES , INCLUDING CHILD CARE AND 7 RECREATIONAL SERVICE S; AND 8 (VIII) OTHER PROGRAMS THAT BENEFIT INDIVIDUALS AND 9 FAMILIES IMPACTED BY INCARCERATION . 10 (E) THE FUNDS RECEIVED FR OM THE COMPTROLLER UNDER § 1–322(B) OF 11 THIS SUBTITLE SHALL BE DISTRIBUTED BY TH E BALTIMORE CITY COMPTROLLER 12 AS FOLLOWS: 13 (1) $150,000 TO THE BALTIMORE CITY OFFICE OF EQUITY AND CIVIL 14 RIGHTS; AND 15 (2) THE REMAINING FUNDS FOR COMMUNI TY INVESTMENT GRANTS 16 DISTRIBUTED EQUALLY AMONG EACH COUNCIL. 17 (F) ON OR BEFORE OCTOBER 1, 2024, AND EACH OCTOBER 1 THEREAFTER , 18 EACH COUNCIL SHALL SUBMIT A REPOR T TO THE BALTIMORE CITY COMPTROLLER 19 INCLUDING: 20 (1) THE AMOUNT OF FUNDS RECEIVED; 21 (2) THE PROGRAMS OR ACTIVITI ES FUNDED; 22 (3) THE METHODS USED TO ALLOCATE GRANTS TO ELIGIBLE 23 RECIPIENTS; AND 24 (4) COUNCIL EXPENDITURES . 25 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 26 1, 2024. 27