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.
*hb1253*
HOUSE BILL 1253
P1, D5 5lr1887
By: The Speaker
Introduced and read first time: February 7, 2025
Assigned to: Appropriations
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 7, 2025
CHAPTER ______
AN ACT concerning 1
Maryland Department of Social Equity and Economic Mobility – Established 2
FOR the purpose of establishing the Maryland Department of Social Equity and Economic 3
Mobility; providing for the Secretary of Social Equity and Economic Mobility; 4
providing for the administration, staffing, purpose, and duties of the Department; 5
requiring a unit of State government other than the Department to refer a certain 6
person to the Department; establishing the Department of Social and Economic 7
Mobility Special Fund as a special, nonlapsing fund; requiring interest earnings of 8
the Fund to be credited to the Fund; providing that the Department is the successor 9
of certain units in regard to the operation of social equity programs; authorizing the 10
Governor to transfer certain positions, associated funds, and unexpended 11
appropriations; and generally relating to the Maryland Department of Social Equity 12
and Economic Mobility. 13
BY repealing and reenacting, with amendments, and transferring 14
Article – Alcoholic Beverages and Cannabis 15
Section 1–309.1 16
Annotated Code of Maryland 17
(2024 Replacement Volume) 18
to be 19
Article – State Government 20
Section 9–4108 21
Annotated Code of Maryland 22
(2021 Replacement Volume and 2024 Supplement) 23
2 HOUSE BILL 1253
BY renumbering 1
Article – Alcoholic Beverages and Cannabis 2
Section 1–309.2 3
to be Section 1–309.1 4
Annotated Code of Maryland 5
(2024 Replacement Volume) 6
BY renumbering 7
Article – State Government 8
Section 9–301 through 9–303, 9–303.1, 9–303.2, 9–303.3, 9–304, 9–304.1, and 9–305 9
through 9–308 and the subtitle “Subtitle 3. Office of Small, Minority, and 10
Women Business Affairs” 11
to be Section 9–4111 through 9–4122, respectively, and the part “Part III. Office of 12
Small, Minority, and Women Business Affairs” 13
Annotated Code of Maryland 14
(2021 Replacement Volume and 2024 Supplement) 15
BY repealing and reenacting, without amendments, 16
Article – Alcoholic Beverages and Cannabis 17
Section 36–1401(a), (c), and (e) 18
Annotated Code of Maryland 19
(2024 Replacement Volume) 20
BY repealing and reenacting, with amendments, 21
Article – Alcoholic Beverages and Cannabis 22
Section 36–1406(d) 23
Annotated Code of Maryland 24
(2024 Replacement Volume) 25
BY repealing and reenacting, without amendments, 26
Article – State Finance and Procurement 27
Section 6–226(a)(2)(i) 28
Annotated Code of Maryland 29
(2021 Replacement Volume and 2024 Supplement) 30
BY repealing and reenacting, with amendments, 31
Article – State Finance and Procurement 32
Section 6–226(a)(2)(ii)204. and 205. and 14–305(b) 33
Annotated Code of Maryland 34
(2021 Replacement Volume and 2024 Supplement) 35
BY adding to 36
Article – State Finance and Procurement 37
Section 6–226(a)(2)(ii)206. 38
Annotated Code of Maryland 39
(2021 Replacement Volume and 2024 Supplement) 40
HOUSE BILL 1253 3
BY repealing and reenacting, with amendments, 1
Article – State Government 2
Section 8–201 3
Annotated Code of Maryland 4
(2021 Replacement Volume and 2024 Supplement) 5
BY adding to 6
Article – State Government 7
Section 9–4101 through 9–4106 9–4107 to be under the new subtitle “Subtitle 41. 8
Maryland Department of Social Equity and Economic Mobility” 9
Annotated Code of Maryland 10
(2021 Replacement Volume and 2024 Supplement) 11
BY repealing and reenacting, with amendments, 12
Article – State Government 13
Section 9–4111, 9–4112, and 9–4114 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2024 Supplement) 16
(As enacted by Section 3 of this Act) 17
BY repealing and reenacting, with amendments, 18
Article – Tax – General 19
Section 2–1302.2 20
Annotated Code of Maryland 21
(2022 Replacement Volume and 2024 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That Section(s) 1–309.1 of Article – Alcoholic Beverages and Cannabis of the Annotated 24
Code of Maryland be transferred to be Section(s) 9–4108 of Article – State Government of 25
the Annotated Code of Maryland. 26
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 1 –309.2 of Article 27
– Alcoholic Beverages and Cannabis of the Annotated Code of Maryland be renumbered to 28
be Section(s) 1–309.1. 29
SECTION 3. AND BE IT FURTHER ENACTED, That Sectio n(s) 9–301 through 30
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
subtitle “Subtitle 3. Office of Small, Minority, and Women Business Affairs” of Article – 32
State Government of the Annotated Code of Maryland be renumbered to be Section(s) 33
9–4111 through 9–4122, respectively, and the part “Part III. Office of Small, Minority, and 34
Women Business Affairs”. 35
SECTION 1. 4. AND BE IT FURTHER ENACTED BY THE GENERAL ASSEMBLY 36
OF MARYLAND , That the Laws of Maryland read as follows: 37
Article – Alcoholic Beverages and Cannabis 38
4 HOUSE BILL 1253
36–1401. 1
(a) In this subtitle the following words have the meanings indicated. 2
(c) “Department” means the Department of Commerce. 3
(e) “Program” means the Capital Access Program established under this subtitle. 4
36–1406. 5
(d) The Department shall collaborate with the Office of Social Equity established 6
under [§ 1–309.1 of this article] § 9–4108 OF THE STATE GOVERNMENT ARTICLE to 7
identify and assist businesses with obtaining financing from the Program. 8
Article – State Finance and Procurement 9
6–226. 10
(a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 11
through 2028. 12
2. Notwithstanding any other provision of law, and unless 13
inconsistent with a federal law, grant agreement, or other federal requirement or with the 14
terms of a gift or settlement agreement, net interest on all State money allocated by the 15
State Treasurer under this section to special funds or accounts, and otherwise entitled to 16
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 17
Fund of the State. 18
(ii) The provisions of subparagraph (i) of this paragraph do not apply 19
to the following funds: 20
204. the Victims of Domestic Violence Program Grant Fund; 21
[and] 22
205. the Proposed Programs Collaborative Grant Fund; AND 23
206. THE DEPARTMENT OF SOCIAL AND ECONOMIC 24
MOBILITY SPECIAL FUND. 25
14–305. 26
(b) (1) On or before December 31 of each year, the Governor’s Office of Small, 27
Minority, and Women Business Affairs shall submit to the Board of Public Works and, 28
subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee 29
and the Joint Committee on Fair Practices and State Personnel Oversight a report 30
summarizing the information the Office receives under subsection (a) of this section. 31
HOUSE BILL 1253 5
(2) If applicable, the report submitted under paragraph (1) of this 1
subsection shall include minority business enterprise participation data for each unit by 2
industry type. 3
(3) This report may be prepared in conjunction with the annual report 4
required under [§ 9–306] § 9–4120 of the State Government Article. 5
(4) (i) Beginning with the report submitted under paragraph (1) of this 6
subsection on December 31, 2023, and each year thereafter, the Governor’s Office of Small, 7
Minority, and Women Business Affairs shall include in the report an attestation that all 8
units required to report under subsection (a) of this section are represented in the report. 9
(ii) To ensure accuracy of the attestation made under subparagraph 10
(i) of this paragraph, on or before December 31, 2023, and every 3 years thereafter, the 11
Governor’s Office of Small, Minority, and Women Business Affairs shall conduct an audit 12
of the Executive Branch of State government to determine what entities are included in the 13
definition of “unit” under § 11–101 of this article. 14
Article – State Government 15
8–201. 16
(a) The Executive Branch of the State government shall have not more than [21] 17
22 principal departments, each of which shall embrace a broad, functional area of that 18
Branch. 19
(b) The principal departments of the Executive Branch of the State government 20
are: 21
(1) Aging; 22
(2) Agriculture; 23
(3) Budget and Management; 24
(4) Commerce; 25
(5) Disabilities; 26
(6) Emergency Management; 27
(7) the Environment; 28
(8) General Services; 29
(9) Health; 30
6 HOUSE BILL 1253
(10) Housing and Community Development; 1
(11) Human Services; 2
(12) Information Technology; 3
(13) Juvenile Services; 4
(14) Labor; 5
(15) Natural Resources; 6
(16) Planning; 7
(17) Public Safety and Correctional Services; 8
(18) Service and Civic Innovation; 9
(19) SOCIAL EQUITY AND ECONOMIC MOBILITY; 10
(20) State Police; 11
[(20)] (21) Transportation; and 12
[(21)] (22) Veterans and Military Families. 13
SUBTITLE 41. MARYLAND DEPARTMENT OF SOCIAL EQUITY AND ECONOMIC 14
MOBILITY. 15
PART I. DEFINITIONS. 16
9–4101. 17
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 18
INDICATED. 19
(B) “DEPARTMENT ” MEANS THE MARYLAND DEPARTMENT OF SOCIAL 20
EQUITY AND ECONOMIC MOBILITY. 21
(C) “SECRETARY” MEANS THE SECRETARY OF SOCIAL EQUITY AND 22
ECONOMIC MOBILITY. 23
(D) “UNIT OF STATE GOVERNMENT ” OR “UNIT” MEANS AN AGENCY OR U NIT 24
OF THE EXECUTIVE BRANCH OF STATE GOVERNMENT . 25
9–4101.1. RESERVED. 26 HOUSE BILL 1253 7
9–4101.2. RESERVED. 1
PART II. GENERAL PROVISIONS. 2
9–4102. 3
(A) THERE IS A MARYLAND DEPARTMENT OF SOCIAL EQUITY AND 4
ECONOMIC MOBILITY, ESTABLISHED AS A PRI NCIPAL DEPARTMENT OF THE STATE 5
GOVERNME NT. 6
(B) (1) THE HEAD OF THE DEPARTMENT IS THE SECRETARY OF SOCIAL 7
EQUITY AND ECONOMIC MOBILITY, WHO SHALL BE APPOINT ED BY THE GOVERNOR 8
WITH THE ADVICE AND CONSENT OF THE SENATE. 9
(2) THE SECRETARY SERVES AT T HE PLEASURE OF THE GOVERNOR. 10
(C) THE FOLLOWING UNITS ARE IN THE DEPARTMENT : 11
(1) THE OFFICE OF MINORITY BUSINESS ENTERPRISES; 12
(2) THE OFFICE OF SMALL, MINORITY, AND WOMEN BUSINESS 13
AFFAIRS; AND 14
(3) THE OFFICE OF SOCIAL EQUITY. 15
(D) THE DEPARTMENT SHALL EMPL OY STAFF TO CARRY OU T ITS DUTIES AS 16
PROVIDED IN THE STATE BUDGET . 17
9–4103. 18
(A) THE PURPOSE OF THE DEPARTMENT IS TO : 19
(1) PROVIDE SUPPORT FOR UNITS OF STATE GOVERNMENT , 20
INDIVIDUALS, AND BUSINESSES FOR T HE MAINTENANCE OF SO CIAL EQUITY 21
POLICIES IN THE STATE; 22
(2) MONITOR TRENDS IN SOCIAL EQUITY PRO GRAMS AND POLICIES 23
ACROSS THE NATION ; 24
(3) PROPOSE NEW AND INNO VATIVE APPROACHES TO SOCIAL EQUITY 25
PROGRAMS; 26
(4) COMPILE AND PRODUCE REPORTS AND RECOMMEN DATIONS 27
RELATED TO SOCIAL EQ UITY; AND 28 8 HOUSE BILL 1253
(5) ENSURE THE FULFILLME NT OF THE ROL ES AND 1
RESPONSIBILITIES OF THE ENTITIES AND SOC IAL EQUITY PROGRAMS IN THE STATE 2
FOR WHICH IT IS THE SUCCESSOR; 3
(6) TRACK THE PERFORMANCE OF S OCIAL EQUITY PROGRAM S AND 4
SMALL OR DISADVANTAG ED BUSINESS ASSISTAN CE PROGRAMS ; 5
(7) PROMOTE AND ENCOURAG E FULL PARTICIPATION IN THE 6
REGULATED CANNABIS I NDUSTRY BY INDIVIDUA LS FROM COMMUNITIES THAT HAVE 7
PREVIOUSLY BEEN DISP ROPORTIONATELY IMPAC TED BY THE WAR ON DR UGS IN 8
ORDER TO POSITIVELY IMPACT THOSE COMMUNI TIES AND OTHER DUTIE S ASSIGNED 9
TO THE OFFICE OF SOCIAL EQUITY ESTABLISHED UND ER THIS SUBTITLE; 10
(8) SUPPORT SMALL OR DIS ADVANTAGED BUSINESSE S IN THE STATE 11
THROUGH ALL DUTIES A SSIGNED TO THE GOVERNOR’S OFFICE OF SMALL, 12
MINORITY, AND WOMEN BUSINESS AFFAIRS; AND 13
(9) CARRY OUT THE DUTIES OF THE OFFICE OF MINORITY BUSINESS 14
ENTERPRISES WITHIN TH E MARYLAND DEPARTMENT OF TRANSPORTATION , 15
INCLUDING DUTIES ASS IGNED TO SUPPORT SMA LL OR DISADVANTAGED 16
BUSINESSES. 17
(B) THE DEPARTMENT SHALL : 18
(1) CONNECT A PERSON WIT H PROGRAMS IN STATE, FEDERAL, AND 19
LOCAL GOVERNMENT THA T SERVE DESIGNATED P OPULATIONS TO ENSURE THE 20
PERSON IS CONNECTED TO PROGRAMS AND OTHE R OPPORTUNITIES THE PERSON IS 21
ELIGIBLE FOR; 22
(2) PROVIDE UNITS OF STATE GOVERNMENT WITH ASSISTANCE 23
RELATED TO THE PURPO SE OF THE DEPARTMENT BY : 24
(I) FACILITATING INFORMATION SHARING BETWEEN UNITS ; 25
(II) MAINTAINING AN INVEN TORY OF SOCIAL EQUIT Y WORK 26
PERFORMED BY EACH UN IT AND RELEVANT REPO RTS FROM THOSE UNITS ; 27
(III) CONDUCTING POLICY AN ALYSES ON SOCIAL EQU ITY AND 28
THE EFFECTIVENESS OF SOCIAL EQUITY PROGRA MS; 29
(IV) ADOPTING STANDARDS F OR UNITS TO PROMOTE SOCIAL 30
EQUITY; AND 31
HOUSE BILL 1253 9
(V) PROVIDING TECHNICAL ASSISTANCE TO UNITS ; AND 1
(3) ADOPT REGULATIONS TO CARRY OUT THIS SUBTI TLE. 2
9–4104. 3
A UNIT OF STATE GOVERNMENT OTHE R THAN THE DEPARTMENT SHALL : 4
(1) ENSURE THAT A PERSON THA T INTERACTS WITH THE UNIT’S 5
PROGRAM FOR DESIGNAT ED POPULATIONS IS CO NNECTED WITH ALL STATE 6
PROGRAMS FOR WHICH T HE PERSON MAY BE ELI GIBLE BY REFERRING T HE PERSON 7
TO THE DEPARTMENT ; AND 8
(2) UTILIZE STANDARDS SE T BY THE DEPARTMENT RELAT ED TO 9
SOCIAL EQUITY. 10
9–4105. 11
ON OR BEFORE DECEMBER 1, 2026, AND EACH YEAR THEREA FTER, THE 12
DEPARTMENT SHALL REPO RT TO THE GOVERNOR AND , IN ACCORDANCE WITH § 13
2–1257 OF THIS ARTICLE, THE GENERAL ASSEMBLY ON: 14
(1) THE WORK OF THE DEPARTMENT IN THE IMMEDIATELY 15
PRECEDING YEAR ; AND 16
(2) RECOMMENDED CHANGES TO LAWS OR POLICIES TO PROMOTE 17
SOCIAL EQUITY. 18
9–4106. 19
(A) THE ATTORNEY GENERAL IS LEGAL ADVI SER TO THE DEPARTMENT . 20
(B) THE ATTORNEY GENERAL SHALL ASSIGN TO THE DEPARTMENT THE 21
NUMBER OF ASSIST ANT ATTORNEYS GENERA L AUTHORIZED BY LAW TO BE ASSIGNED 22
TO THE DEPARTMENT AND ANY AD DITIONAL ASSISTANT A TTORNEYS GENERAL 23
NECESSARY TO GIVE EF FECTIVE LEGAL ADVICE AND COUNSEL . 24
(C) THE ATTORNEY GENERAL ALSO SHALL DE SIGNATE AN ASSISTANT 25
ATTORNEY GENERAL AS COUNSEL TO THE DEPARTMENT . 26
9–4107. 27
(A) IN THIS SECTION, “FUND” MEANS THE DEPARTMENT OF SOCIAL AND 28
ECONOMIC MOBILITY SPECIAL FUND. 29
10 HOUSE BILL 1253
(B) THERE IS A DEPARTMENT OF SOCIAL AND ECONOMIC MOBILITY 1
SPECIAL FUND. 2
(C) THE PURPOSE OF THE FUND IS TO PAY THE CO STS OF THE OPERATION 3
OF: 4
(1) THE OFFICE OF SOCIAL EQUITY; AND 5
(2) THE OFFICE OF MINORITY BUSINESS ENTERPRISES. 6
(D) THE DEPARTMENT SHALL ADMI NISTER THE FUND. 7
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 8
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 9
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 10
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 11
(F) (1) THE FUND CONSISTS OF : 12
(I) REVENUE DISTRIBUTED TO THE FUND UNDER § 2–1302.2 OF 13
THE TAX – GENERAL ARTICLE; 14
(II) MONEY APPROPRIATED I N THE STATE BUDGET TO THE 15
FUND; 16
(III) INTEREST EARNINGS OF THE FUND; AND 17
(IV) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED 18
FOR THE BENEFIT OF T HE FUND. 19
(2) THE GOVERNOR SHALL INCLUD E IN THE ANNUAL BUDG ET BILL 20
AN APPROPRIATION FROM T HE TRANSPORTATION TRUST FUND TO THE FUND 21
EQUAL TO THE AMOUNT NECESSARY TO DEFRAY THE OPERATIONS AND 22
ADMINISTRATIVE EXPEN SES OF THE OFFICE OF MINORITY BUSINESS 23
ENTERPRISES. 24
(G) THE FUND MAY BE USED ONLY FOR PAYING THE COSTS OF THE 25
OPERATION AND ADMINISTRA TIVE EXPENSES OF : 26
(1) THE OFFICE OF SOCIAL EQUITY; AND 27
(2) THE OFFICE OF MINORITY BUSINESS ENTERPRISES. 28
HOUSE BILL 1253 11
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 1
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 2
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 3
THE FUND. 4
(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 5
WITH THE STATE BUDGET . 6
(J) MONEY EXPENDED FROM T HE FUND FOR THE OFFICE OF SOCIAL 7
EQUITY OR THE OFFICE OF MINORITY BUSINESS ENTERPRISES IS SUPPLE MENTAL 8
TO AND IS NOT INTEND ED TO TAKE THE PLACE OF FUNDING THAT OTHE RWISE 9
WOULD BE APPROPRIATE D FOR THE OFFICE OF SOCIAL EQUITY OR THE OFFICE OF 10
MINORITY BUSINESS ENTERPRISES. 11
9–4108. 12
(a) [(1)] There is an Office of Social Equity[. 13
(2) The Office is an independent office that functions] within the 14
[Maryland Cannabis Administration] DEPARTMENT . 15
(b) (1) The Governor shall appoint an Executive Director of the Office of Social 16
Equity. 17
(2) The Executive Director of the Office of Social Equity shall have at least 18
5 years of experience in civil rights advocacy, civil rights litigation, or another area of social 19
justice. 20
(c) The Office of Social Equity may employ staff and retain contractors as may be 21
required to carry out the functions of the Office. 22
(d) The Office of Social Equity shall: 23
(1) promote and encourage full participation in the regulated cannabis 24
industry by people from communities that have previously been disproportionately 25
impacted by the war on drugs in order to positively impact those communities; 26
(2) consult with and assist the Comptroller in the administration of the 27
Community Reinvestment and Repair Fund under § 1 –322 of [this subtitle] THE 28
ALCOHOLIC BEVERAGES AND CANNABIS ARTICLE; 29
(3) consult with and assist the Department of Commerce in the 30
administration of the Cannabis Business Assistance Fund under § 5–1901 of the Economic 31
Development Article; 32
12 HOUSE BILL 1253
(4) identify and oppose regulations that unnecessarily burden or 1
undermine the legislative intent of the Office, including regulations that impose undue 2
restrictions or financial requirements; 3
(5) provide recommendations to the Maryland Cannabis Administration on 4
regulations related to: 5
(i) diversity; and 6
(ii) social equity applications; 7
(6) work with the Maryland Cannabis Administration to implement free 8
technical assistance for social equity and minority cannabis business applicants; 9
(7) produce reports and recommendations on diversity and equity in 10
ownership, management, and employment in the legal cannabis economy; and 11
(8) assist businesses with obtaining financing through the Capital Access 12
Program under Title 36, Subtitle 14 of [this article] THE ALCOHOLIC BEVERAGES AND 13
CANNABIS ARTICLE. 14
(e) (1) On or before March 1 each year, the Office of Social Equity shall produce 15
and make publicly available a report on how the funds in the Community Reinvestment 16
and Repair Fund under § 1–322 of [this subtitle] THE ALCOHOLIC BEVERAGES AND 17
CANNABIS ARTICLE were allocated during the immediately preceding calendar year. 18
(2) The report shall also be submitted to the General Assembly in 19
accordance with § 2–1257 of [the State Government Article] THIS ARTICLE. 20
(3) The Office may request information from political subdivisions and 21
entities receiving distributions from the Fund to assist with the completion of the report. 22
(f) (1) On or before November 1 every 2 years, beginning in 2024, the Office of 23
Social Equity shall solicit public input on the uses of the funds in the Community 24
Reinvestment and Repair Fund under § 1–322 of [this subtitle] THE ALCOHOLIC 25
BEVERAGES AND CANNABIS ARTICLE. 26
(2) On or before December 15 every 2 years, beginning in 2024, the Office 27
of Social Equity shall publish a review of the input received under paragraph (1) of this 28
subsection on a publicly accessible part of the Office’s website. 29
(3) The Office shall include in the review information on how the funds 30
received from the Fund were spent during the immediately preceding 2 calendar years. 31
9–4109. RESERVED. 32
HOUSE BILL 1253 13
9–4110. RESERVED. 1
Part III. Office of Small, Minority, and Women Business Affairs. 2
9–4111. 3
(a) In this [subtitle] PART the following words have the meanings indicated. 4
(b) “Interdepartmental Committee” means the Interdepartmental Advisory 5
Committee on Small, Minority, and Women Business Affairs. 6
(c) (1) “Minority person” means: 7
(i) an individual who has been deprived of the opportunity to 8
develop and keep a competitive position in the economy because of a social or economic 9
disadvantage that arises from cultural, racial, or other similar causes; or 10
(ii) a sheltered workshop for individuals with disabilities. 11
(2) “Minority person” includes: 12
(i) an Aleut; 13
(ii) an American Indian; 14
(iii) a Black; 15
(iv) an Eskimo; 16
(v) a Hispanic; 17
(vi) an Oriental; 18
(vii) a Puerto Rican; or 19
(viii) a woman. 20
(d) “Office” means the Office of Small, Minority, and Women Business Affairs. 21
(e) “Special Secretary” means the Special Secretary for the Office of Small, 22
Minority, and Women Business Affairs. 23
9–4112. 24
There is an Office of Small, Minority, and Women Business Affairs in the [Executive] 25
Department. 26
14 HOUSE BILL 1253
9–4114. 1
(a) There is an Interdepartmental Advisory Committee on Small, Minority, and 2
Women Business Affairs. 3
(b) The Interdepartmental Committee is composed of: 4
(1) the secretary of each principal department of the Executive Branch of 5
government, or the secretary’s designee; 6
(2) the State Superintendent of Schools, or the Superintendent’s designee; 7
(3) the Secretary of Higher Education, or the Secretary’s designee; and 8
(4) the Special Secretary. 9
(c) The Interdepartmental Committee shall: 10
(1) advise the Special Secretary on proposals to implement and enhance 11
the duties of the Office, including the promotion of employment of minority persons in the 12
State, and the promotion of the growth and participation of minority business enterprises 13
in the State; 14
(2) gather such information the Committee deems necessary to promote 15
the goals of the Office; 16
(3) provide such other assistance as may be required to further the 17
purposes of [§§ 9–304 and 9–305] §§ 9–4117 AND 9–4119 of this subtitle; and 18
(4) meet at the call of the Special Secretary. 19
Article – Tax – General 20
2–1302.2. 21
After making the distributions required under §§ 2–1301 through 2–1302.1 of this 22
subtitle, of the sales and use tax collected under § 11–104(k) of this article from the sale of 23
cannabis, as defined in § 1–101 of the Alcoholic Beverages and Cannabis Article, the 24
Comptroller quarterly shall distribute: 25
(1) to the Cannabis Regulation and Enforcement Fund, established under 26
§ 36–206 of the Alcoholic Beverages and Cannabis Article, an amount necessary to defray 27
the entire cost of the operations and administrative expenses of the Maryland Cannabis 28
Administration established under Title 36 of the Alcoholic Beverages and Cannabis Article; 29
(2) TO THE DEPARTMENT OF SOCIAL AND ECONOMIC MOBILITY 30
SPECIAL FUND, ESTABLISHED UNDER § 9–4107 OF THE STATE GOVERNMENT 31 HOUSE BILL 1253 15
ARTICLE, AN AMOUNT NECESSARY TO DEFRAY THE OPERAT IONS AND 1
ADMINISTRATIVE EXPEN SES OF THE OFFICE OF SOCIAL EQUITY WITHIN THE 2
DEPARTMENT OF SOCIAL AND ECONOMIC MOBILITY; 3
(3) after making the distribution required under [item (1)] ITEMS (1) AND 4
(2) of this section: 5
(i) 35% to the Community Reinvestment and Repair Fund under § 6
1–322 of the Alcoholic Beverages and Cannabis Article for fiscal years 2024 through 2033; 7
(ii) 5% to counties, which shall be allocated to each county based on 8
the percentage of revenue collected from that county, except that a county shall distribute 9
to a municipality located in the county 50% of the allocation received under this item that 10
is attributable to the sales and use tax revenue generated by a dispensary located in that 11
municipality; 12
(iii) 5% to the Cannabis Public Health Fund established under § 13
13–4505 of the Health – General Article; and 14
(iv) for fiscal years 2024 through 2028, 5% to the Cannabis Business 15
Assistance Fund established under § 5–1901 of the Economic Development Article; and 16
[(3)] (4) any balance remaining after the distributions required under 17
items (1) [and], (2), AND (3) of this section to the General Fund of the State. 18
SECTION 2. 5. AND BE IT FURTHE R ENACTED, That: 19
(a) In regard to the operation of social equity programs by the State, the Maryland 20
Department of Social Equity and Economic Mobility is the successor of: 21
(1) the Governor’s Office of Small, Minority, and Women–Owned Women 22
Business Affairs; 23
(2) the Office of Social Equity in the Maryland Cannabis Administration; 24
and 25
(3) the Office of Minority Business Enterprises in the Maryland 26
Department of Transportation. 27
(b) When determining how and when to transfer personnel from the Governor’s 28
Office of Small, Minority, and Women–Owned Women Business Affairs, the Office of Social 29
Equity in the Maryland Cannabis Administration, and the Office of Minority Business 30
Enterprises in the Maryland Department of Transportation to the Maryland Department 31
of Social Equity, the Governor and the Department of Budget and Management shall 32
minimize costs to the State and maximize the efficient operation of social equity programs. 33
16 HOUSE BILL 1253
(c) In every law, executive order, rule, regulation, policy, or document created by 1
an official, an employee, or a unit of this State, the names and titles of those agencies and 2
officials mean the names and titles of the successor agency or official for matters regarding 3
the operation of social equity programs by the State. 4
SECTION 3. 6. AND BE IT FURTHER ENACTED, That, as of the effective date of 5
this Act, an individual who is a merit employee or contract staff in a budgeted position of 6
the Governor’s Office of Small, Minority, and Women–Owned Women Business Affairs, the 7
Office of Social Equity in the Maryland Cannabis Administration, or the Office of Minority 8
Business Enterprises in the Maryland Department of Transportation and whose position 9
is transferred to the Maryland Department of Social Equity and Economic Mobility to 10
oversee the regulation of cannabis shall be transferred without any change to, or loss of, 11
the individual’s rights, pay, working conditions, benefits, or status, and shall retain the 12
individual’s merit system status and retirement system status. 13
SECTION 4. 7. AND BE IT FURTHER ENACTED, That, notwithstanding any other 14
provision of law, the Governor may transfer to the Maryland Department of Social Equity 15
and Economic Mobility positions, associated funds, and unexpended appropriations under 16
applicable budget codes that were included in the fiscal year 2026 State budget as enacted 17
by Chapter ____ (S.B. 319) (H.B. 350) of the Acts of the General Assembly of 2025. 18
SECTION 5. 8. AND BE IT FURTHER ENACTED, That, on or before July 1, 2026, 19
the Maryland Department of Social Equity and Economic Mobility shall submit a report to 20
the Governor and, in accordance with § 2–1257 of the State Government Article, the 21
General Assembly that: 22
(1) identifies all State programs and units dedicated to social equity or that 23
have a social equity component; and 24
(2) makes recommendations regarding how State programs and units can 25
be reorganized, coordinated, or otherwise made more effective and more efficient to promote 26
social equity. 27
SECTION 9. AND BE IT FURTHER ENACTED, That the publisher of the 28
Annotated Code of Maryland, in consultation with and subject to the approval of the 29
Department of Legislative Services, shall correct, with no further action required by the 30
General Assembly, cross–references and terminology rendered incorrect by this Act. The 31
publisher shall adequately describe any correction that is made in an editor’s note following 32
the section affected. 33
SECTION 6. 10. AND BE IT FURTHER ENACTED, That this Act shall take effect 34
October 1, 2025. 35