Maryland 2025 Regular Session

Maryland House Bill HB1253 Compare Versions

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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
5- Underlining indicates amendments to bill.
6- Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7-amendment.
85 *hb1253*
96
107 HOUSE BILL 1253
118 P1, D5 5lr1887
129
1310 By: The Speaker
1411 Introduced and read first time: February 7, 2025
1512 Assigned to: Appropriations
16-Committee Report: Favorable with amendments
17-House action: Adopted
18-Read second time: March 7, 2025
1913
20-CHAPTER ______
14+A BILL ENTITLED
2115
2216 AN ACT concerning 1
2317
24-Maryland Department of Social Equity and Economic Mobility – Established 2
18+Maryland Department of Social Equity – Established 2
2519
26-FOR the purpose of establishing the Maryland Department of Social Equity and Economic 3
27-Mobility; providing for the Secretary of Social Equity and Economic Mobility; 4
28-providing for the administration, staffing, purpose, and duties of the Department; 5
29-requiring a unit of State government other than the Department to refer a certain 6
30-person to the Department; establishing the Department of Social and Economic 7
31-Mobility Special Fund as a special, nonlapsing fund; requiring interest earnings of 8
32-the Fund to be credited to the Fund; providing that the Department is the successor 9
33-of certain units in regard to the operation of social equity programs; authorizing the 10
34-Governor to transfer certain positions, associated funds, and unexpended 11
35-appropriations; and generally relating to the Maryland Department of Social Equity 12
36-and Economic Mobility. 13
20+FOR the purpose of establishing the Maryland Department of Social Equity; providing for 3
21+the Secretary of Social Equity; providing for the administration, staffing, purpose, 4
22+and duties of the Department; requiring a unit of State government other than the 5
23+Department to refer a certain person to the Department; providing that the 6
24+Department is the successor of certain units in regard to the operation of social 7
25+equity programs; authorizing the Governor to transfer certain positions, associated 8
26+funds, and unexpended appropriations; and generally relating to the Maryland 9
27+Department of Social Equity. 10
3728
38-BY repealing and reenacting, with amendments, and transferring 14
39- Article – Alcoholic Beverages and Cannabis 15
40- Section 1–309.1 16
41- Annotated Code of Maryland 17
42- (2024 Replacement Volume) 18
43-to be 19
44- Article – State Government 20
45- Section 9–4108 21
46- Annotated Code of Maryland 22
47- (2021 Replacement Volume and 2024 Supplement) 23
29+BY repealing and reenacting, with amendments, 11
30+ Article – State Government 12
31+Section 8–201 13
32+ Annotated Code of Maryland 14
33+ (2021 Replacement Volume and 2024 Supplement) 15
34+
35+BY adding to 16
36+ Article – State Government 17
37+Section 9–4101 through 9–4106 to be under the new subtitle “Subtitle 41. Maryland 18
38+Department of Social Equity” 19
39+ Annotated Code of Maryland 20
40+ (2021 Replacement Volume and 2024 Supplement) 21
41+
42+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 22
43+That the Laws of Maryland read as follows: 23
44+
45+Article – State Government 24
46+
47+8–201. 25
4848 2 HOUSE BILL 1253
4949
5050
51-BY renumbering 1
52- Article – Alcoholic Beverages and Cannabis 2
53- Section 1–309.2 3
54- to be Section 1–309.1 4
55- Annotated Code of Maryland 5
56- (2024 Replacement Volume) 6
51+ (a) The Executive Branch of the State government shall have not more than [21] 1
52+22 principal departments, each of which shall embrace a broad, functional area of that 2
53+Branch. 3
5754
58-BY renumbering 7
59- Article – State Government 8
60- Section 9–301 through 9–303, 9–303.1, 9–303.2, 9–303.3, 9–304, 9–304.1, and 9–305 9
61- through 9–308 and the subtitle “Subtitle 3. Office of Small, Minority, and 10
62- Women Business Affairs” 11
63- to be Section 9–4111 through 9–4122, respectively, and the part “Part III. Office of 12
64- Small, Minority, and Women Business Affairs” 13
65- Annotated Code of Maryland 14
66- (2021 Replacement Volume and 2024 Supplement) 15
55+ (b) The principal departments of the Executive Branch of the State government 4
56+are: 5
6757
68-BY repealing and reenacting, without amendments, 16
69- Article – Alcoholic Beverages and Cannabis 17
70- Section 36–1401(a), (c), and (e) 18
71- Annotated Code of Maryland 19
72- (2024 Replacement Volume) 20
58+ (1) Aging; 6
7359
74-BY repealing and reenacting, with amendments, 21
75- Article – Alcoholic Beverages and Cannabis 22
76- Section 36–1406(d) 23
77- Annotated Code of Maryland 24
78- (2024 Replacement Volume) 25
60+ (2) Agriculture; 7
7961
80-BY repealing and reenacting, without amendments, 26
81- Article – State Finance and Procurement 27
82- Section 6–226(a)(2)(i) 28
83- Annotated Code of Maryland 29
84- (2021 Replacement Volume and 2024 Supplement) 30
62+ (3) Budget and Management; 8
8563
86-BY repealing and reenacting, with amendments, 31
87- Article – State Finance and Procurement 32
88- Section 6–226(a)(2)(ii)204. and 205. and 14–305(b) 33
89- Annotated Code of Maryland 34
90- (2021 Replacement Volume and 2024 Supplement) 35
64+ (4) Commerce; 9
9165
92-BY adding to 36
93- Article – State Finance and Procurement 37
94- Section 6–226(a)(2)(ii)206. 38
95- Annotated Code of Maryland 39
96- (2021 Replacement Volume and 2024 Supplement) 40
66+ (5) Disabilities; 10
67+
68+ (6) Emergency Management; 11
69+
70+ (7) the Environment; 12
71+
72+ (8) General Services; 13
73+
74+ (9) Health; 14
75+
76+ (10) Housing and Community Development; 15
77+
78+ (11) Human Services; 16
79+
80+ (12) Information Technology; 17
81+
82+ (13) Juvenile Services; 18
83+
84+ (14) Labor; 19
85+
86+ (15) Natural Resources; 20
87+
88+ (16) Planning; 21
89+
90+ (17) Public Safety and Correctional Services; 22
91+
92+ (18) Service and Civic Innovation; 23
93+
94+ (19) SOCIAL EQUITY; 24
95+
96+ (20) State Police; 25
9797 HOUSE BILL 1253 3
9898
9999
100-BY repealing and reenacting, with amendments, 1
101- Article – State Government 2
102-Section 8–201 3
103- Annotated Code of Maryland 4
104- (2021 Replacement Volume and 2024 Supplement) 5
100+ [(20)] (21) Transportation; and 1
105101
106-BY adding to 6
107- Article – State Government 7
108-Section 9–4101 through 9–4106 9–4107 to be under the new subtitle “Subtitle 41. 8
109-Maryland Department of Social Equity and Economic Mobility” 9
110- Annotated Code of Maryland 10
111- (2021 Replacement Volume and 2024 Supplement) 11
102+ [(21)] (22) Veterans and Military Families. 2
112103
113-BY repealing and reenacting, with amendments, 12
114- Article – State Government 13
115- Section 9–4111, 9–4112, and 9–4114 14
116- Annotated Code of Maryland 15
117- (2021 Replacement Volume and 2024 Supplement) 16
118- (As enacted by Section 3 of this Act) 17
104+SUBTITLE 41. MARYLAND DEPARTMENT OF SOCIAL EQUITY. 3
119105
120-BY repealing and reenacting, with amendments, 18
121- Article – Tax – General 19
122- Section 2–1302.2 20
123- Annotated Code of Maryland 21
124- (2022 Replacement Volume and 2024 Supplement) 22
106+9–4101. 4
125107
126- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
127-That Section(s) 1–309.1 of Article – Alcoholic Beverages and Cannabis of the Annotated 24
128-Code of Maryland be transferred to be Section(s) 9–4108 of Article – State Government of 25
129-the Annotated Code of Maryland. 26
108+ (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANI NGS 5
109+INDICATED. 6
130110
131- SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 1 –309.2 of Article 27
132-– Alcoholic Beverages and Cannabis of the Annotated Code of Maryland be renumbered to 28
133-be Section(s) 1–309.1. 29
111+ (B) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF SOCIAL 7
112+EQUITY. 8
134113
135- SECTION 3. AND BE IT FURTHER ENACTED, That Sectio n(s) 9–301 through 30
136-9–303, 9–303.1, 9–303.2, 9–303.3, 9–304, 9–304.1, and 9–305 through 9–308 and the 31
137-subtitle “Subtitle 3. Office of Small, Minority, and Women Business Affairs” of Article – 32
138-State Government of the Annotated Code of Maryland be renumbered to be Section(s) 33
139-9–4111 through 9–4122, respectively, and the part “Part III. Office of Small, Minority, and 34
140-Women Business Affairs”. 35
114+ (C) “SECRETARY” MEANS THE SECRETARY OF SOCIAL EQUITY. 9
141115
142- SECTION 1. 4. AND BE IT FURTHER ENACTED BY THE GENERAL ASSEMBLY 36
143-OF MARYLAND , That the Laws of Maryland read as follows: 37
116+ (D) “UNIT OF STATE GOVERNMENT ” OR “UNIT” MEANS AN AGENCY OR U NIT 10
117+OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT . 11
144118
145-Article – Alcoholic Beverages and Cannabis 38
146- 4 HOUSE BILL 1253
119+9–4102. 12
120+
121+ (A) THERE IS A MARYLAND DEPARTMENT OF SOCIAL EQUITY, 13
122+ESTABLISHED AS A PRI NCIPAL DEPARTMENT OF THE STATE GOVERNMENT . 14
123+
124+ (B) (1) THE HEAD OF THE DEPARTMENT IS THE SECRETARY OF SOCIAL 15
125+EQUITY, WHO SHALL BE APPOINT ED BY THE GOVERNOR WITH THE ADV ICE AND 16
126+CONSENT OF THE SENATE. 17
127+
128+ (2) THE SECRETARY SERVES AT T HE PLEASURE OF THE GOVERNOR. 18
129+
130+ (C) THE DEPARTMENT SHALL EMPL OY STAFF TO CARRY OU T ITS DUTIES AS 19
131+PROVIDED IN THE STATE BUDGET . 20
132+
133+9–4103. 21
134+
135+ (A) THE PURPOSE OF THE DEPARTMENT IS TO: 22
136+
137+ (1) PROVIDE SUPPORT FOR UNITS OF STATE GOVERNMENT , 23
138+INDIVIDUALS, AND BUSINESSES FOR THE MAINTENANCE OF SOCIAL EQUITY 24
139+POLICIES IN THE STATE; 25
140+
141+ (2) MONITOR TRENDS IN SO CIAL EQUITY PROGRAMS AND POLICIES 26
142+ACROSS THE NATION ; 27 4 HOUSE BILL 1253
147143
148144
149-36–1401. 1
150145
151- (a) In this subtitle the following words have the meanings indicated. 2
146+ (3) PROPOSE NEW AND INNO VATIVE APPROACHES TO SOCIAL EQUITY 1
147+PROGRAMS; 2
152148
153- (c) “Department” means the Department of Commerce. 3
149+ (4) COMPILE AND PRODUCE REPORTS AND REC OMMENDATIONS 3
150+RELATED TO SOCIAL EQ UITY; AND 4
154151
155- (e) “Program” means the Capital Access Program established under this subtitle. 4
152+ (5) ENSURE THE FULFILLME NT OF THE ROLES AND 5
153+RESPONSIBILITIES OF THE ENTITIES AND SOC IAL EQUITY PROGRAMS IN THE STATE 6
154+FOR WHICH IT IS THE SUCCESSOR. 7
156155
157-36–1406. 5
156+ (B) THE DEPARTMENT SHALL: 8
158157
159- (d) The Department shall collaborate with the Office of Social Equity established 6
160-under [§ 1–309.1 of this article] § 9–4108 OF THE STATE GOVERNMENT ARTICLE to 7
161-identify and assist businesses with obtaining financing from the Program. 8
158+ (1) CONNECT A PERSON WIT H PROGRAMS IN STATE, FEDERAL, AND 9
159+LOCAL GOVERNMENT THA T SERVE DESIGNATED P OPULATIONS TO ENSURE THE 10
160+PERSON IS CONNECTED TO PROGRAMS AND OTHE R OPPORTUNITIES THE PERSON IS 11
161+ELIGIBLE FOR; 12
162162
163-Article – State Finance and Procurement 9
163+ (2) PROVIDE UNITS OF STATE GOVERNMENT WITH ASSISTANCE 13
164+RELATED TO THE PURPO SE OF THE DEPARTMENT BY: 14
164165
165-6–226. 10
166+ (I) FACILITATING INFORMA TION SHARING BETWEEN UNITS; 15
166167
167- (a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 11
168-through 2028. 12
168+ (II) MAINTAINING AN INVEN TORY OF SOCIAL EQUIT Y WORK 16
169+PERFORMED BY EACH UNIT AND RELEVANT REPORTS FRO M THOSE UNITS; 17
169170
170- 2. Notwithstanding any other provision of law, and unless 13
171-inconsistent with a federal law, grant agreement, or other federal requirement or with the 14
172-terms of a gift or settlement agreement, net interest on all State money allocated by the 15
173-State Treasurer under this section to special funds or accounts, and otherwise entitled to 16
174-receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 17
175-Fund of the State. 18
171+ (III) CONDUCTING POLICY AN ALYSES ON SOCIAL EQUITY AND 18
172+THE EFFECTIVENESS OF SOCIAL EQUITY PROGRA MS; 19
176173
177- (ii) The provisions of subparagraph (i) of this paragraph do not apply 19
178-to the following funds: 20
174+ (IV) ADOPTING STANDARDS F OR UNITS TO PROMOTE SOCIAL 20
175+EQUITY; AND 21
179176
180- 204. the Victims of Domestic Violence Program Grant Fund; 21
181-[and] 22
177+ (V) PROVIDING TECHNICAL ASSISTANCE TO UNITS; AND 22
182178
183- 205. the Proposed Programs Collaborative Grant Fund; AND 23
179+ (3) ADOPT REGULATIONS TO CARRY OUT THIS SUBTITLE. 23
184180
185- 206. THE DEPARTMENT OF SOCIAL AND ECONOMIC 24
186-MOBILITY SPECIAL FUND. 25
181+9–4104. 24
187182
188-14–305. 26
183+ A UNIT OF STATE GOVERNMENT OTHER THAN THE DEPARTMENT SHALL: 25
189184
190- (b) (1) On or before December 31 of each year, the Governor’s Office of Small, 27
191-Minority, and Women Business Affairs shall submit to the Board of Public Works and, 28
192-subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee 29
193-and the Joint Committee on Fair Practices and State Personnel Oversight a report 30
194-summarizing the information the Office receives under subsection (a) of this section. 31
195- HOUSE BILL 1253 5
185+ (1) ENSURE THAT A PERSON THAT INTERACTS WITH THE UNIT’S 26
186+PROGRAM FOR DESIGNATED POPULATIO NS IS CONNECTED WITH ALL STATE 27 HOUSE BILL 1253 5
196187
197188
198- (2) If applicable, the report submitted under paragraph (1) of this 1
199-subsection shall include minority business enterprise participation data for each unit by 2
200-industry type. 3
189+PROGRAMS FOR WHICH T HE PERSON MAY BE ELIGIBLE BY REFERRING THE PER SON 1
190+TO THE DEPARTMENT ; AND 2
201191
202- (3) This report may be prepared in conjunction with the annual report 4
203-required under [§ 9–306] § 9–4120 of the State Government Article. 5
192+ (2) UTILIZE STANDARDS SET BY THE DEPARTMENT RELATED TO 3
193+SOCIAL EQUITY. 4
204194
205- (4) (i) Beginning with the report submitted under paragraph (1) of this 6
206-subsection on December 31, 2023, and each year thereafter, the Governor’s Office of Small, 7
207-Minority, and Women Business Affairs shall include in the report an attestation that all 8
208-units required to report under subsection (a) of this section are represented in the report. 9
195+9–4105. 5
209196
210- (ii) To ensure accuracy of the attestation made under subparagraph 10
211-(i) of this paragraph, on or before December 31, 2023, and every 3 years thereafter, the 11
212-Governor’s Office of Small, Minority, and Women Business Affairs shall conduct an audit 12
213-of the Executive Branch of State government to determine what entities are included in the 13
214-definition of “unit” under § 11–101 of this article. 14
197+ ON OR BEFORE DECEMBER 1, 2026, AND EACH YEAR THEREAFTER , THE 6
198+DEPARTMENT SHALL REPORT TO THE GOVERNOR AND , IN ACCORDANCE WITH § 7
199+2–1257 OF THIS ARTICLE, THE GENERAL ASSEMBLY ON: 8
215200
216-Article – State Government 15
201+ (1) THE WORK OF THE DEPARTMENT IN THE IMMEDIATELY 9
202+PRECEDING YEAR; AND 10
217203
218-8–201. 16
204+ (2) RECOMMEND ED CHANGES TO LAWS OR POLICIES TO PROMOTE 11
205+SOCIAL EQUITY. 12
219206
220- (a) The Executive Branch of the State government shall have not more than [21] 17
221-22 principal departments, each of which shall embrace a broad, functional area of that 18
222-Branch. 19
207+9–4106. 13
223208
224- (b) The principal departments of the Executive Branch of the State government 20
225-are: 21
209+ (A) THE ATTORNEY GENERAL IS LEGAL ADVISER TO THE DEPARTMENT . 14
226210
227- (1) Aging; 22
211+ (B) THE ATTORNEY GENERAL SHALL ASSIGN TO THE DEPARTMENT THE 15
212+NUMBER OF ASSISTANT ATTORNEYS GENERAL AU THORIZED BY LAW TO B E ASSIGNED 16
213+TO THE DEPARTMENT AND ANY AD DITIONAL ASSISTANT A TTORNEYS GENERAL 17
214+NECESSARY TO GIVE EF FECTIVE LEGAL ADVICE A ND COUNSEL. 18
228215
229- (2) Agriculture; 23
216+ (C) THE ATTORNEY GENERAL ALSO SHALL DE SIGNATE AN ASSISTANT 19
217+ATTORNEY GENERAL AS COUNSEL TO THE DEPARTMENT . 20
230218
231- (3) Budget and Management; 24
219+ SECTION 2. AND BE IT FURTHER ENACTED, That: 21
232220
233- (4) Commerce; 25
221+ (a) In regard to the operation of social equity programs by the State, the Maryland 22
222+Department of Social Equity is the successor of: 23
234223
235- (5) Disabilities; 26
224+ (1) the Governor’s Office of Small, Minority, and Women–Owned Business 24
225+Affairs; 25
236226
237- (6) Emergency Management; 27
227+ (2) the Office of Social Equity in the Maryland Cannabis Administration; 26
228+and 27
238229
239- (7) the Environment; 28
240-
241- (8) General Services; 29
242-
243- (9) Health; 30
230+ (3) the Office of Minority Business Enterprises in the Maryland 28
231+Department of Transportation. 29
244232 6 HOUSE BILL 1253
245233
246234
247- (10) Housing and Community Development; 1
235+ (b) When determining how and when to transfer personnel from the Governor’s 1
236+Office of Small, Minority, and Women–Owned Business Affairs, the Office of Social Equity 2
237+in the Maryland Cannabis Administration, and the Office of Minority Business Enterprises 3
238+in the Maryland Department of Transportation to the Maryland Department of Social 4
239+Equity, the Governor and the Department of Budget and Management shall minimize costs 5
240+to the State and maximize the efficient operation of social equity programs. 6
248241
249- (11) Human Services; 2
242+ (c) In every law, executive order, rule, regulation, policy, or document created by 7
243+an official, an employee, or a unit of this State, the names and titles of those agencies and 8
244+officials mean the names and titles of the successor agency or official for matters regarding 9
245+the operation of social equity programs by the State. 10
250246
251- (12) Information Technology; 3
247+ SECTION 3. AND BE IT FURTHER ENACTED, That , as of the effective date of this 11
248+Act, an individual who is a merit employee or contract staff in a budgeted position of the 12
249+Governor’s Office of Small, Minority, and Women–Owned Business Affairs, the Office of 13
250+Social Equity in the Maryland Cannabis Administration, or the Office of Minority Business 14
251+Enterprises in the Maryland Department of Transportation and whose position is 15
252+transferred to the Maryland Department of Social Equity to oversee the regulation of 16
253+cannabis shall be transferred without any change to, or loss of, the individual’s rights, pay, 17
254+working conditions, benefits, or status, and shall retain the individual’s merit system status 18
255+and retirement system status. 19
252256
253- (13) Juvenile Services; 4
257+ SECTION 4. AND BE IT FURTHER ENACTED, That , notwithstanding any other 20
258+provision of law, the Governor may transfer to the Maryland Department of Social Equity 21
259+positions, associated funds, and unexpended appropriations under applicable budget codes 22
260+that were included in the fiscal year 2026 State budget as enacted by Chapter ____ (S.B. 23
261+319) (H.B. 350) of the Acts of the General Assembly of 2025. 24
254262
255- (14) Labor; 5
263+ SECTION 5. AND BE IT FURTHER ENACTED, That , on or before July 1, 2026, the 25
264+Maryland Department of Social Equity shall submit a report to the Governor and, in 26
265+accordance with § 2–1257 of the State Government Article, the General Assembly that: 27
256266
257- (15) Natural Resources; 6
267+ (1) identifies all State programs and units dedicated to social equity or that 28
268+have a social equity component; and 29
258269
259- (16) Planning; 7
270+ (2) makes recommendations regarding how State programs and units can 30
271+be reorganized, coordinated, or otherwise made more effective and more efficient to promote 31
272+social equity. 32
260273
261- (17) Public Safety and Correctional Services; 8
262-
263- (18) Service and Civic Innovation; 9
264-
265- (19) SOCIAL EQUITY AND ECONOMIC MOBILITY; 10
266-
267- (20) State Police; 11
268-
269- [(20)] (21) Transportation; and 12
270-
271- [(21)] (22) Veterans and Military Families. 13
272-
273-SUBTITLE 41. MARYLAND DEPARTMENT OF SOCIAL EQUITY AND ECONOMIC 14
274-MOBILITY. 15
275-
276-PART I. DEFINITIONS. 16
277-
278-9–4101. 17
279-
280- (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 18
281-INDICATED. 19
282-
283- (B) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF SOCIAL 20
284-EQUITY AND ECONOMIC MOBILITY. 21
285-
286- (C) “SECRETARY” MEANS THE SECRETARY OF SOCIAL EQUITY AND 22
287-ECONOMIC MOBILITY. 23
288-
289- (D) “UNIT OF STATE GOVERNMENT ” OR “UNIT” MEANS AN AGENCY OR U NIT 24
290-OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT . 25
291-
292-9–4101.1. RESERVED. 26 HOUSE BILL 1253 7
293-
294-
295-
296-9–4101.2. RESERVED. 1
297-
298-PART II. GENERAL PROVISIONS. 2
299-
300-9–4102. 3
301-
302- (A) THERE IS A MARYLAND DEPARTMENT OF SOCIAL EQUITY AND 4
303-ECONOMIC MOBILITY, ESTABLISHED AS A PRI NCIPAL DEPARTMENT OF THE STATE 5
304-GOVERNME NT. 6
305-
306- (B) (1) THE HEAD OF THE DEPARTMENT IS THE SECRETARY OF SOCIAL 7
307-EQUITY AND ECONOMIC MOBILITY, WHO SHALL BE APPOINT ED BY THE GOVERNOR 8
308-WITH THE ADVICE AND CONSENT OF THE SENATE. 9
309-
310- (2) THE SECRETARY SERVES AT T HE PLEASURE OF THE GOVERNOR. 10
311-
312- (C) THE FOLLOWING UNITS ARE IN THE DEPARTMENT : 11
313-
314- (1) THE OFFICE OF MINORITY BUSINESS ENTERPRISES; 12
315-
316- (2) THE OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS 13
317-AFFAIRS; AND 14
318-
319- (3) THE OFFICE OF SOCIAL EQUITY. 15
320-
321- (D) THE DEPARTMENT SHALL EMPL OY STAFF TO CARRY OU T ITS DUTIES AS 16
322-PROVIDED IN THE STATE BUDGET . 17
323-
324-9–4103. 18
325-
326- (A) THE PURPOSE OF THE DEPARTMENT IS TO : 19
327-
328- (1) PROVIDE SUPPORT FOR UNITS OF STATE GOVERNMENT , 20
329-INDIVIDUALS, AND BUSINESSES FOR T HE MAINTENANCE OF SO CIAL EQUITY 21
330-POLICIES IN THE STATE; 22
331-
332- (2) MONITOR TRENDS IN SOCIAL EQUITY PRO GRAMS AND POLICIES 23
333-ACROSS THE NATION ; 24
334-
335- (3) PROPOSE NEW AND INNO VATIVE APPROACHES TO SOCIAL EQUITY 25
336-PROGRAMS; 26
337-
338- (4) COMPILE AND PRODUCE REPORTS AND RECOMMEN DATIONS 27
339-RELATED TO SOCIAL EQ UITY; AND 28 8 HOUSE BILL 1253
340-
341-
342-
343- (5) ENSURE THE FULFILLME NT OF THE ROL ES AND 1
344-RESPONSIBILITIES OF THE ENTITIES AND SOC IAL EQUITY PROGRAMS IN THE STATE 2
345-FOR WHICH IT IS THE SUCCESSOR; 3
346-
347- (6) TRACK THE PERFORMANCE OF S OCIAL EQUITY PROGRAM S AND 4
348-SMALL OR DISADVANTAG ED BUSINESS ASSISTAN CE PROGRAMS ; 5
349-
350- (7) PROMOTE AND ENCOURAG E FULL PARTICIPATION IN THE 6
351-REGULATED CANNABIS I NDUSTRY BY INDIVIDUA LS FROM COMMUNITIES THAT HAVE 7
352-PREVIOUSLY BEEN DISP ROPORTIONATELY IMPAC TED BY THE WAR ON DR UGS IN 8
353-ORDER TO POSITIVELY IMPACT THOSE COMMUNI TIES AND OTHER DUTIE S ASSIGNED 9
354-TO THE OFFICE OF SOCIAL EQUITY ESTABLISHED UND ER THIS SUBTITLE; 10
355-
356- (8) SUPPORT SMALL OR DIS ADVANTAGED BUSINESSE S IN THE STATE 11
357-THROUGH ALL DUTIES A SSIGNED TO THE GOVERNOR’S OFFICE OF SMALL, 12
358-MINORITY, AND WOMEN BUSINESS AFFAIRS; AND 13
359-
360- (9) CARRY OUT THE DUTIES OF THE OFFICE OF MINORITY BUSINESS 14
361-ENTERPRISES WITHIN TH E MARYLAND DEPARTMENT OF TRANSPORTATION , 15
362-INCLUDING DUTIES ASS IGNED TO SUPPORT SMA LL OR DISADVANTAGED 16
363-BUSINESSES. 17
364-
365- (B) THE DEPARTMENT SHALL : 18
366-
367- (1) CONNECT A PERSON WIT H PROGRAMS IN STATE, FEDERAL, AND 19
368-LOCAL GOVERNMENT THA T SERVE DESIGNATED P OPULATIONS TO ENSURE THE 20
369-PERSON IS CONNECTED TO PROGRAMS AND OTHE R OPPORTUNITIES THE PERSON IS 21
370-ELIGIBLE FOR; 22
371-
372- (2) PROVIDE UNITS OF STATE GOVERNMENT WITH ASSISTANCE 23
373-RELATED TO THE PURPO SE OF THE DEPARTMENT BY : 24
374-
375- (I) FACILITATING INFORMATION SHARING BETWEEN UNITS ; 25
376-
377- (II) MAINTAINING AN INVEN TORY OF SOCIAL EQUIT Y WORK 26
378-PERFORMED BY EACH UN IT AND RELEVANT REPO RTS FROM THOSE UNITS ; 27
379-
380- (III) CONDUCTING POLICY AN ALYSES ON SOCIAL EQU ITY AND 28
381-THE EFFECTIVENESS OF SOCIAL EQUITY PROGRA MS; 29
382-
383- (IV) ADOPTING STANDARDS F OR UNITS TO PROMOTE SOCIAL 30
384-EQUITY; AND 31
385- HOUSE BILL 1253 9
386-
387-
388- (V) PROVIDING TECHNICAL ASSISTANCE TO UNITS ; AND 1
389-
390- (3) ADOPT REGULATIONS TO CARRY OUT THIS SUBTI TLE. 2
391-
392-9–4104. 3
393-
394- A UNIT OF STATE GOVERNMENT OTHE R THAN THE DEPARTMENT SHALL : 4
395-
396- (1) ENSURE THAT A PERSON THA T INTERACTS WITH THE UNIT’S 5
397-PROGRAM FOR DESIGNAT ED POPULATIONS IS CO NNECTED WITH ALL STATE 6
398-PROGRAMS FOR WHICH T HE PERSON MAY BE ELI GIBLE BY REFERRING T HE PERSON 7
399-TO THE DEPARTMENT ; AND 8
400-
401- (2) UTILIZE STANDARDS SE T BY THE DEPARTMENT RELAT ED TO 9
402-SOCIAL EQUITY. 10
403-
404-9–4105. 11
405-
406- ON OR BEFORE DECEMBER 1, 2026, AND EACH YEAR THEREA FTER, THE 12
407-DEPARTMENT SHALL REPO RT TO THE GOVERNOR AND , IN ACCORDANCE WITH § 13
408-2–1257 OF THIS ARTICLE, THE GENERAL ASSEMBLY ON: 14
409-
410- (1) THE WORK OF THE DEPARTMENT IN THE IMMEDIATELY 15
411-PRECEDING YEAR ; AND 16
412-
413- (2) RECOMMENDED CHANGES TO LAWS OR POLICIES TO PROMOTE 17
414-SOCIAL EQUITY. 18
415-
416-9–4106. 19
417-
418- (A) THE ATTORNEY GENERAL IS LEGAL ADVI SER TO THE DEPARTMENT . 20
419-
420- (B) THE ATTORNEY GENERAL SHALL ASSIGN TO THE DEPARTMENT THE 21
421-NUMBER OF ASSIST ANT ATTORNEYS GENERA L AUTHORIZED BY LAW TO BE ASSIGNED 22
422-TO THE DEPARTMENT AND ANY AD DITIONAL ASSISTANT A TTORNEYS GENERAL 23
423-NECESSARY TO GIVE EF FECTIVE LEGAL ADVICE AND COUNSEL . 24
424-
425- (C) THE ATTORNEY GENERAL ALSO SHALL DE SIGNATE AN ASSISTANT 25
426-ATTORNEY GENERAL AS COUNSEL TO THE DEPARTMENT . 26
427-
428-9–4107. 27
429-
430- (A) IN THIS SECTION, “FUND” MEANS THE DEPARTMENT OF SOCIAL AND 28
431-ECONOMIC MOBILITY SPECIAL FUND. 29
432- 10 HOUSE BILL 1253
433-
434-
435- (B) THERE IS A DEPARTMENT OF SOCIAL AND ECONOMIC MOBILITY 1
436-SPECIAL FUND. 2
437-
438- (C) THE PURPOSE OF THE FUND IS TO PAY THE CO STS OF THE OPERATION 3
439-OF: 4
440-
441- (1) THE OFFICE OF SOCIAL EQUITY; AND 5
442-
443- (2) THE OFFICE OF MINORITY BUSINESS ENTERPRISES. 6
444-
445- (D) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 7
446-
447- (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 8
448-SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 9
449-
450- (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 10
451-AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 11
452-
453- (F) (1) THE FUND CONSISTS OF : 12
454-
455- (I) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–1302.2 OF 13
456-THE TAX – GENERAL ARTICLE; 14
457-
458- (II) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 15
459-FUND; 16
460-
461- (III) INTEREST EARNINGS OF THE FUND; AND 17
462-
463- (IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 18
464-FOR THE BENEFIT OF T HE FUND. 19
465-
466- (2) THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL 20
467-AN APPROPRIATION FROM T HE TRANSPORTATION TRUST FUND TO THE FUND 21
468-EQUAL TO THE AMOUNT NECESSARY TO DEFRAY THE OPERATIONS AND 22
469-ADMINISTRATIVE EXPEN SES OF THE OFFICE OF MINORITY BUSINESS 23
470-ENTERPRISES. 24
471-
472- (G) THE FUND MAY BE USED ONLY FOR PAYING THE COSTS OF THE 25
473-OPERATION AND ADMINISTRA TIVE EXPENSES OF : 26
474-
475- (1) THE OFFICE OF SOCIAL EQUITY; AND 27
476-
477- (2) THE OFFICE OF MINORITY BUSINESS ENTERPRISES. 28
478- HOUSE BILL 1253 11
479-
480-
481- (H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 1
482-IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 2
483-
484- (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 3
485-THE FUND. 4
486-
487- (I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 5
488-WITH THE STATE BUDGET . 6
489-
490- (J) MONEY EXPENDED FROM T HE FUND FOR THE OFFICE OF SOCIAL 7
491-EQUITY OR THE OFFICE OF MINORITY BUSINESS ENTERPRISES IS SUPPLE MENTAL 8
492-TO AND IS NOT INTEND ED TO TAKE THE PLACE OF FUNDING THAT OTHE RWISE 9
493-WOULD BE APPROPRIATE D FOR THE OFFICE OF SOCIAL EQUITY OR THE OFFICE OF 10
494-MINORITY BUSINESS ENTERPRISES. 11
495-
496-9–4108. 12
497-
498- (a) [(1)] There is an Office of Social Equity[. 13
499-
500- (2) The Office is an independent office that functions] within the 14
501-[Maryland Cannabis Administration] DEPARTMENT . 15
502-
503- (b) (1) The Governor shall appoint an Executive Director of the Office of Social 16
504-Equity. 17
505-
506- (2) The Executive Director of the Office of Social Equity shall have at least 18
507-5 years of experience in civil rights advocacy, civil rights litigation, or another area of social 19
508-justice. 20
509-
510- (c) The Office of Social Equity may employ staff and retain contractors as may be 21
511-required to carry out the functions of the Office. 22
512-
513- (d) The Office of Social Equity shall: 23
514-
515- (1) promote and encourage full participation in the regulated cannabis 24
516-industry by people from communities that have previously been disproportionately 25
517-impacted by the war on drugs in order to positively impact those communities; 26
518-
519- (2) consult with and assist the Comptroller in the administration of the 27
520-Community Reinvestment and Repair Fund under § 1 –322 of [this subtitle] THE 28
521-ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE; 29
522-
523- (3) consult with and assist the Department of Commerce in the 30
524-administration of the Cannabis Business Assistance Fund under § 5–1901 of the Economic 31
525-Development Article; 32
526- 12 HOUSE BILL 1253
527-
528-
529- (4) identify and oppose regulations that unnecessarily burden or 1
530-undermine the legislative intent of the Office, including regulations that impose undue 2
531-restrictions or financial requirements; 3
532-
533- (5) provide recommendations to the Maryland Cannabis Administration on 4
534-regulations related to: 5
535-
536- (i) diversity; and 6
537-
538- (ii) social equity applications; 7
539-
540- (6) work with the Maryland Cannabis Administration to implement free 8
541-technical assistance for social equity and minority cannabis business applicants; 9
542-
543- (7) produce reports and recommendations on diversity and equity in 10
544-ownership, management, and employment in the legal cannabis economy; and 11
545-
546- (8) assist businesses with obtaining financing through the Capital Access 12
547-Program under Title 36, Subtitle 14 of [this article] THE ALCOHOLIC BEVERAGES AND 13
548-CANNABIS ARTICLE. 14
549-
550- (e) (1) On or before March 1 each year, the Office of Social Equity shall produce 15
551-and make publicly available a report on how the funds in the Community Reinvestment 16
552-and Repair Fund under § 1–322 of [this subtitle] THE ALCOHOLIC BEVERAGES AND 17
553-CANNABIS ARTICLE were allocated during the immediately preceding calendar year. 18
554-
555- (2) The report shall also be submitted to the General Assembly in 19
556-accordance with § 2–1257 of [the State Government Article] THIS ARTICLE. 20
557-
558- (3) The Office may request information from political subdivisions and 21
559-entities receiving distributions from the Fund to assist with the completion of the report. 22
560-
561- (f) (1) On or before November 1 every 2 years, beginning in 2024, the Office of 23
562-Social Equity shall solicit public input on the uses of the funds in the Community 24
563-Reinvestment and Repair Fund under § 1–322 of [this subtitle] THE ALCOHOLIC 25
564-BEVERAGES AND CANNABIS ARTICLE. 26
565-
566- (2) On or before December 15 every 2 years, beginning in 2024, the Office 27
567-of Social Equity shall publish a review of the input received under paragraph (1) of this 28
568-subsection on a publicly accessible part of the Office’s website. 29
569-
570- (3) The Office shall include in the review information on how the funds 30
571-received from the Fund were spent during the immediately preceding 2 calendar years. 31
572-
573-9–4109. RESERVED. 32
574- HOUSE BILL 1253 13
575-
576-
577-9–4110. RESERVED. 1
578-
579-Part III. Office of Small, Minority, and Women Business Affairs. 2
580-
581-9–4111. 3
582-
583- (a) In this [subtitle] PART the following words have the meanings indicated. 4
584-
585- (b) “Interdepartmental Committee” means the Interdepartmental Advisory 5
586-Committee on Small, Minority, and Women Business Affairs. 6
587-
588- (c) (1) “Minority person” means: 7
589-
590- (i) an individual who has been deprived of the opportunity to 8
591-develop and keep a competitive position in the economy because of a social or economic 9
592-disadvantage that arises from cultural, racial, or other similar causes; or 10
593-
594- (ii) a sheltered workshop for individuals with disabilities. 11
595-
596- (2) “Minority person” includes: 12
597-
598- (i) an Aleut; 13
599-
600- (ii) an American Indian; 14
601-
602- (iii) a Black; 15
603-
604- (iv) an Eskimo; 16
605-
606- (v) a Hispanic; 17
607-
608- (vi) an Oriental; 18
609-
610- (vii) a Puerto Rican; or 19
611-
612- (viii) a woman. 20
613-
614- (d) “Office” means the Office of Small, Minority, and Women Business Affairs. 21
615-
616- (e) “Special Secretary” means the Special Secretary for the Office of Small, 22
617-Minority, and Women Business Affairs. 23
618-
619-9–4112. 24
620-
621- There is an Office of Small, Minority, and Women Business Affairs in the [Executive] 25
622-Department. 26
623- 14 HOUSE BILL 1253
624-
625-
626-9–4114. 1
627-
628- (a) There is an Interdepartmental Advisory Committee on Small, Minority, and 2
629-Women Business Affairs. 3
630-
631- (b) The Interdepartmental Committee is composed of: 4
632-
633- (1) the secretary of each principal department of the Executive Branch of 5
634-government, or the secretary’s designee; 6
635-
636- (2) the State Superintendent of Schools, or the Superintendent’s designee; 7
637-
638- (3) the Secretary of Higher Education, or the Secretary’s designee; and 8
639-
640- (4) the Special Secretary. 9
641-
642- (c) The Interdepartmental Committee shall: 10
643-
644- (1) advise the Special Secretary on proposals to implement and enhance 11
645-the duties of the Office, including the promotion of employment of minority persons in the 12
646-State, and the promotion of the growth and participation of minority business enterprises 13
647-in the State; 14
648-
649- (2) gather such information the Committee deems necessary to promote 15
650-the goals of the Office; 16
651-
652- (3) provide such other assistance as may be required to further the 17
653-purposes of [§§ 9–304 and 9–305] §§ 9–4117 AND 9–4119 of this subtitle; and 18
654-
655- (4) meet at the call of the Special Secretary. 19
656-
657-Article – Tax – General 20
658-
659-2–1302.2. 21
660-
661- After making the distributions required under §§ 2–1301 through 2–1302.1 of this 22
662-subtitle, of the sales and use tax collected under § 11–104(k) of this article from the sale of 23
663-cannabis, as defined in § 1–101 of the Alcoholic Beverages and Cannabis Article, the 24
664-Comptroller quarterly shall distribute: 25
665-
666- (1) to the Cannabis Regulation and Enforcement Fund, established under 26
667-§ 36–206 of the Alcoholic Beverages and Cannabis Article, an amount necessary to defray 27
668-the entire cost of the operations and administrative expenses of the Maryland Cannabis 28
669-Administration established under Title 36 of the Alcoholic Beverages and Cannabis Article; 29
670-
671- (2) TO THE DEPARTMENT OF SOCIAL AND ECONOMIC MOBILITY 30
672-SPECIAL FUND, ESTABLISHED UNDER § 9–4107 OF THE STATE GOVERNMENT 31 HOUSE BILL 1253 15
673-
674-
675-ARTICLE, AN AMOUNT NECESSARY TO DEFRAY THE OPERAT IONS AND 1
676-ADMINISTRATIVE EXPEN SES OF THE OFFICE OF SOCIAL EQUITY WITHIN THE 2
677-DEPARTMENT OF SOCIAL AND ECONOMIC MOBILITY; 3
678-
679- (3) after making the distribution required under [item (1)] ITEMS (1) AND 4
680-(2) of this section: 5
681-
682- (i) 35% to the Community Reinvestment and Repair Fund under § 6
683-1–322 of the Alcoholic Beverages and Cannabis Article for fiscal years 2024 through 2033; 7
684-
685- (ii) 5% to counties, which shall be allocated to each county based on 8
686-the percentage of revenue collected from that county, except that a county shall distribute 9
687-to a municipality located in the county 50% of the allocation received under this item that 10
688-is attributable to the sales and use tax revenue generated by a dispensary located in that 11
689-municipality; 12
690-
691- (iii) 5% to the Cannabis Public Health Fund established under § 13
692-13–4505 of the Health – General Article; and 14
693-
694- (iv) for fiscal years 2024 through 2028, 5% to the Cannabis Business 15
695-Assistance Fund established under § 5–1901 of the Economic Development Article; and 16
696-
697- [(3)] (4) any balance remaining after the distributions required under 17
698-items (1) [and], (2), AND (3) of this section to the General Fund of the State. 18
699-
700- SECTION 2. 5. AND BE IT FURTHE R ENACTED, That: 19
701-
702- (a) In regard to the operation of social equity programs by the State, the Maryland 20
703-Department of Social Equity and Economic Mobility is the successor of: 21
704-
705- (1) the Governor’s Office of Small, Minority, and Women–Owned Women 22
706-Business Affairs; 23
707-
708- (2) the Office of Social Equity in the Maryland Cannabis Administration; 24
709-and 25
710-
711- (3) the Office of Minority Business Enterprises in the Maryland 26
712-Department of Transportation. 27
713-
714- (b) When determining how and when to transfer personnel from the Governor’s 28
715-Office of Small, Minority, and Women–Owned Women Business Affairs, the Office of Social 29
716-Equity in the Maryland Cannabis Administration, and the Office of Minority Business 30
717-Enterprises in the Maryland Department of Transportation to the Maryland Department 31
718-of Social Equity, the Governor and the Department of Budget and Management shall 32
719-minimize costs to the State and maximize the efficient operation of social equity programs. 33
720- 16 HOUSE BILL 1253
721-
722-
723- (c) In every law, executive order, rule, regulation, policy, or document created by 1
724-an official, an employee, or a unit of this State, the names and titles of those agencies and 2
725-officials mean the names and titles of the successor agency or official for matters regarding 3
726-the operation of social equity programs by the State. 4
727-
728- SECTION 3. 6. AND BE IT FURTHER ENACTED, That, as of the effective date of 5
729-this Act, an individual who is a merit employee or contract staff in a budgeted position of 6
730-the Governor’s Office of Small, Minority, and Women–Owned Women Business Affairs, the 7
731-Office of Social Equity in the Maryland Cannabis Administration, or the Office of Minority 8
732-Business Enterprises in the Maryland Department of Transportation and whose position 9
733-is transferred to the Maryland Department of Social Equity and Economic Mobility to 10
734-oversee the regulation of cannabis shall be transferred without any change to, or loss of, 11
735-the individual’s rights, pay, working conditions, benefits, or status, and shall retain the 12
736-individual’s merit system status and retirement system status. 13
737-
738- SECTION 4. 7. AND BE IT FURTHER ENACTED, That, notwithstanding any other 14
739-provision of law, the Governor may transfer to the Maryland Department of Social Equity 15
740-and Economic Mobility positions, associated funds, and unexpended appropriations under 16
741-applicable budget codes that were included in the fiscal year 2026 State budget as enacted 17
742-by Chapter ____ (S.B. 319) (H.B. 350) of the Acts of the General Assembly of 2025. 18
743-
744- SECTION 5. 8. AND BE IT FURTHER ENACTED, That, on or before July 1, 2026, 19
745-the Maryland Department of Social Equity and Economic Mobility shall submit a report to 20
746-the Governor and, in accordance with § 2–1257 of the State Government Article, the 21
747-General Assembly that: 22
748-
749- (1) identifies all State programs and units dedicated to social equity or that 23
750-have a social equity component; and 24
751-
752- (2) makes recommendations regarding how State programs and units can 25
753-be reorganized, coordinated, or otherwise made more effective and more efficient to promote 26
754-social equity. 27
755-
756- SECTION 9. AND BE IT FURTHER ENACTED, That the publisher of the 28
757-Annotated Code of Maryland, in consultation with and subject to the approval of the 29
758-Department of Legislative Services, shall correct, with no further action required by the 30
759-General Assembly, cross–references and terminology rendered incorrect by this Act. The 31
760-publisher shall adequately describe any correction that is made in an editor’s note following 32
761-the section affected. 33
762-
763- SECTION 6. 10. AND BE IT FURTHER ENACTED, That this Act shall take effect 34
764-October 1, 2025. 35
765-
274+ SECTION 6. AND BE IT FURTHER ENACTED, That this Act shall take effect 33
275+October 1, 2025. 34