EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0699*
SENATE BILL 699
A3 4lr3175
CF HB 1484
By: Senator M. Washington
Introduced and read first time: January 29, 2024
Assigned to: Finance and Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 29, 2024
CHAPTER ______
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 a governance structure within a certain 8
time period and to develop certain plans to allocate certain funds through certain 9
grants to community–based organizations for certain services and programs; 10
requiring the Baltimore City Comptroller to distribute certain funds in a certain 11
manner; and generally relating to the Community Reinvestment and Repair Fund 12
and the distribution and use of funds for Baltimore 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 2 SENATE BILL 699
BY adding to 1
Article – Alcoholic Beverages and Cannabis 2
Section 1–324 3
Annotated Code of Maryland 4
(2016 Volume and 2023 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Alcoholic Beverages and Cannabis 8
1–322. 9
(a) (1) There is a Community Reinvestment and Repair Fund. 10
(b) (1) (I) [Based] EXCEPT AS PROVID ED IN SUBPARAGRAPH (II) OF 11
THIS PARAGRAPH , BASED on the percentage allocable to each county determined by the 12
Office of Social Equity and reported by the Office to the Comptroller on or before July 31 13
each year, the Comptroller shall distribute funds from the Fund to each county in an 14
amount that, for the period from July 1, 2002, to January 1, 2023, both inclusive, is 15
proportionate to the total number of cannabis possession charges in the county compared 16
to the total number of cannabis possession charges in the State. 17
(II) 1. FOR BALTIMORE CITY, THE COMPTROLLER SHALL 18
DISTRIBUTE FUNDS FRO M THE FUND TO THE BALTIMORE CITY COMPTROLLER , 19
WHO SHALL DISTRIBUTE THE FUNDS IN ACCORDA NCE WITH § 1–324 OF THIS 20
SUBTITLE. 21
2. THE BALTIMORE CITY COMPTROLLER MAY RETA IN 22
UP TO 2% $125,000 OF THE FUNDS RECEIVE D UNDER SUBSUBPARAGR APH 1 OF THIS 23
SUBPARAGRAPH TO COVE R THE DIRECT AND IND IRECT COSTS ASSOCIAT ED WITH: 24
A. ADMINISTERING THE DISTRIBUTING DISTRIBUTION 25
OF THE FUNDS TO EACH COUNCIL ; AND 26
B. THE FINANCIAL MANAGEMENT SUPPORT I T PROVIDES 27
TO EACH COUNCIL . 28
(2) (i) [Subject] EXCEPT FOR BALTIMORE CITY, SUBJECT to the 29
limitations under subsection (a)(6) of this section, each county shall adopt a law 30
establishing the purpose for which money received from the Fund may be used. 31
(ii) 1. [On] SUBJECT TO SUBSUBPARA GRAPH 2 OF THIS 32
SUBPARAGRAPH , ON or before December 1 every 2 years, beginning in 2024, each political 33
subdivision that receives funds from the Fund under paragraph (1) of this subsection shall 34 SENATE BILL 699 3
submit a report to the Governor and, in accordance with § 2–1257 of the State Government 1
Article, the Senate Budget and Taxation Committee and the House Appropriations 2
Committee on how funds received from the Fund were spent during the immediately 3
preceding 2 fiscal years. 4
2. FOR BALTIMORE CITY, THE BALTIMORE CITY 5
COMPTROLLER SHALL SUB MIT THE REPORT REQUI RED UNDER SUBSUBPARAGRAPH 6
1 OF THIS SUBPARAGRAPH . 7
1–324. 8
(A) IN THIS SECTION , “COUNCIL” MEANS AN EQUITABLE COMMUNITY 9
INVESTMENT COUNCIL. 10
(B) (1) THERE IS AN EQUITABLE COMMUNITY INVESTMENT COUNCIL IN 11
EACH STATE LEGISLATIVE DIS TRICT LOCATED WHOLLY , OR IN PART, IN BALTIMORE 12
CITY. 13
(2) THE PURPOSE OF EACH C OUNCIL IS TO EACH COUNCIL IS THE 14
ACTING, PRINCIPAL LOCAL BODY , WHICH SHALL DISBURSE THROUGH GRANTS 15
COMMUNITY REINVESTMENT AND REPAIR FUNDS DISTRIBU TED UNDER § 1–322 OF 16
THIS SUBTITLE. 17
(C) (1) EACH COUNCIL C ONSISTS OF THE FOLLOWING MEMBER S: 18
(I) THE FOLLOWING NONVOT ING MEMBERS : 19
1. ONE MEMBER OF THE SENATE THE SENATOR WHO 20
REPRESENTS THE DISTR ICT, OR THE SENATOR’S DESIGNEE; AND 21
(II) 2. ONE MEMBER OF THE HOUSE OF DELEGATES A 22
DELEGATE WHO REPRESENTS THE DISTRICT, APPOINTED BY THE SPEAKER OF THE 23
HOUSE; AND 24
(III) (II) EXCEPT AS PROVIDED I N PARAGRAPH (3) OF THIS 25
SUBSECTION, THE FOLLOWING VOTING MEMBERS APPOINTED BY THE GOVERNOR, 26
IN CONSULTATION WITH THE OFFICE OF SOCIAL EQUITY: 27
1. AT LEAST THREE REPRESENTATIVES FROM 28
ORGANIZATIONS LED BY INDIVIDUALS FROM DIS PROPORTIONATELY IMPA CTED 29
AREAS AS DEFINED IN § 36–101 OF THIS ARTICLE; 30
2. AT LEAST TWO YOUNG A DULT MEMBERS BETWEEN 31
THE AGES OF 18 TO 24; 32
4 SENATE BILL 699
3. AT LEAST TWO REPRESE NTATIVES FROM NONPRO FIT 1
HUMAN SERVICES OR CO MMUNITY DEVELOPMENT ORGANIZATIONS THAT B ENEFIT 2
TRADITIONALLY UNDERS ERVED RESIDENTS ; AND 3
4. UP TO SEVEN REPRESEN TATIVES OF RECOGNIZE D 4
NEIGHBORHOOD –BASED COMMUNITY ASSOCIATIO NS WITHIN THE DISTRI CT. 5
(2) EACH COUNCIL SHALL HA VE AT LEAST 15 BUT NOT MORE THAN 17 6
MEMBERS. 7
(3) (I) FOLLOWING THE INITIAL APPOINTMENT OF THE M EMBERS 8
OF A COUNCIL UNDER P ARAGRAPH (1) OF THIS SUBSECTION , THE COUNCIL SHALL 9
DETERMINE THE APPOIN TMENT OF MEMBERS OF THE COUNC IL UNDER PARAGRAPH 10
(1)(III) (1)(II) OF THIS SUBSECTION SHALL BE SELECTED IN ACCORDANCE WITH THE 11
GOVERNANCE PLAN UNDE R SUBSECTION (D)(1)(II) OF THIS SECTION. 12
(II) THE GOVERNOR MAY NOT APPO INT THE MEMBERS OF T HE 13
COUNCIL UNDER PARAGR APH (1)(II) OF THIS SUBSECTION A FTER THE INITIAL 14
APPOINTME NT OF MEMBERS . 15
(4) (I) THE TERM OF A MEMBER : 16
1. APPOINTED BY THE GOVERNOR UNDER PARAGR APH 17
(1)(III) (1)(II) OF THIS SUBSECTION I S 2 YEARS IMMEDIATELY FOLLOWIN G THE 18
FIRST MEETING OF THE COUNCIL; AND 19
2. BEGINNING JULY 1, 2026, APPOINTED BY THE 20
COUNCIL SELECTED UNDER PARAGRAPH (3) OF THIS SUBSECTION MAY BE NOT 21
LONGER THAN IS 3 YEARS. 22
(II) AT THE END OF A TERM , A MEMBER CONTINUES T O SERVE 23
UNTIL A SUCCESSOR IS APPOINTED AND QUALIF IES. 24
(III) A MEMBER WHO IS APPOIN TED AFTER A TERM HAS BEGUN 25
SERVES ONLY FOR THE R EST OF THE TERM AND UNTIL A SUCCESSOR IS APPOINTED 26
AND QUALIFIES. 27
(5) A MEMBER OF A COUNCIL : 28
(I) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE 29
COUNCIL; BUT 30
SENATE BILL 699 5
(II) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER 1
THE STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE 2
BUDGET. 3
(D) (1) EACH AS STEWARDS OF THE DI STRIBUTION OF FUNDS FOR THE 4
PURPOSE OF BENEFITTI NG INDIVIDUALS AND C OMMUNITIES , EACH COUNCIL 5
SHALL: 6
(I) ADOPT BYLAWS NOT LATER THA N SEPTEMBER 1, 2024 A 7
GOVERNANCE STRUCTURE WITHIN 45 DAYS AFTER THE FIRST MEETING; AND 8
(II) DEVELOP A SUSTAINABL E GOVERNANCE PLAN AN D 9
PROGRAM TO ALLOCATE FUNDS THROUGH GRANTS TO COMMUNITY –BASED 10
ORGANIZATIONS FOR CAPITAL PROJECTS , SERVICES, AND PROGRAMS CONSIST ENT 11
WITH THE EQUITY PRINCIPLES FOR PARTICIPATION AND OU TCOMES UNDER § 1–322 12
OF THIS SUBTITLE. 13
(2) THE GOVERNANCE PLAN A ND PROGRAM UNDER PAR AGRAPH 14
(1)(II) OF THIS SUBSECTION : 15
(I) MUST BE ESTABLISHED BEFORE ANY ALLOCATIO N OR 16
EXPENDITURE OF FUNDS UNDER THIS SUBSECT ION; 17
(II) SHALL BE DEVELOPED I N CONSULTATION WITH IMPACTED 18
STAKEHOLDERS ; AND 19
(III) SHALL BE THE SUBJECT OF A PUBLIC HEARING ON ITS 20
DEVELOPMENT . 21
(2) (3) ELIGIBLE EXPENDITURES FOR GRANT FUNDING UNDER 22
THIS SUBSECTION INCL UDE: 23
(I) BEHAVIORAL HEALTH CRISIS RESPON SE SERVICES; 24
(II) EDUCATION AND AFTER –SCHOOL PROGRAMS ; 25
(III) TRUANCY AND ABSENTEE ISM INTERVENTION PRO GRAMS; 26
(IV) HOUSING AND HOMELESS NESS PREVENTION ; 27
(V) TRANSPORTATION IMPRO VEMENTS IN HIGH –DENSITY 28
TRANSIT CORRIDORS ; 29
(VI) JOB TRAINING AND WOR KFORCE DEVELOPMENT ; 30 6 SENATE BILL 699
(VII) COMMUNITY SERVICES , INCLUDING CHILD CARE AND 1
RECREATIONAL SERVICE S; AND 2
(VIII) OTHER PROGRAMS THAT BENEFIT INDIVIDUALS AND 3
FAMILIES IMPACTED BY INCARCERATION . 4
(E) THE FUNDS RECEIVED FR OM THE COMPTROLLER UNDER § 1–322(B) OF 5
THIS SUBTITLE SHALL BE DISTRIBUTED BY TH E BALTIMORE CITY COMPTROLLER 6
AS FOLLOWS: 7
(1) $150,000 TO THE BALTIMORE CITY OFFICE OF EQUITY AND CIVIL 8
RIGHTS; AND 9
(2) THE REMAINING FUNDS FOR COMMUNITY INVESTMENT GRANTS 10
DISTRIBUTED EQUALLY AMONG EACH C OUNCIL. 11
(F) ON OR BEFORE OCTOBER 1, 2024, AND EACH OCTOBER 1 THEREAFTER , 12
EACH COUNCIL SHALL S UBMIT A REPORT TO TH E BALTIMORE CITY COMPTROLLER 13
INCLUDING: 14
(1) THE AMOUNT OF FUNDS RECEIVED; 15
(2) THE PROGRAMS OR ACTI VITIES FUNDED; 16
(3) THE METHODS USED TO SOLICIT, REVIEW, AND SELECT ALLOCATE 17
GRANTS TO ELIGIBLE RECIPIENTS OF FUNDS; AND 18
(4) COUNCIL ADMINISTRATIVE , OUTREACH, AND TRAINING 19
EXPENDITURES . 20
SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 21
Assembly that all unspent funds allocated under § 1–322(b) of the Alcoholic Beverages and 22
Cannabis Article to Baltimore City before the effective date of this Act shall be allocated in 23
accordance with this Act. 24
SECTION 2. 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
June 1, 2024. 26