EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1364*
HOUSE BILL 1364
A3 5lr3269
CF SB 894
By: Delegate Qi
Introduced and read first time: February 7, 2025
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Office of Social Equity – Community Reinvestment and Repair Fund – Advisory 2
Board and Modifications 3
FOR the purpose of requiring the Office of Social Equity, rather than the Comptroller, to 4
administer the Community Reinvestment and Repair Fund; repealing provisions of 5
law requiring the Office to report on the Fund and to solicit public input on the uses 6
of the Fund and publish a review of the input; requiring the Office to oversee the 7
appropriation of funds from the Fund and to train fund recipients; establishing the 8
Community Reinvestment and Repair Advisory Board; altering certain limitations 9
on the use of the Fund; limiting certain administrative costs to administer the Fund 10
to a certain amount; requiring counties to administer funds from the Fund in a 11
certain manner; requiring the Office to require each county to develop a plan for the 12
distribution of certain funds to community–based organizations and to report certain 13
information to the Office by a certain date each year; and generally relating to the 14
Community Reinvestment and Repair Fund and the Office of Social Equity. 15
BY repealing and reenacting, with amendments, 16
Article – Alcoholic Beverages and Cannabis 17
Section 1–309.1 and 1–322 18
Annotated Code of Maryland 19
(2024 Replacement Volume) 20
BY adding to 21
Article – Alcoholic Beverages and Cannabis 22
Section 1–3A–01 through 1–3A–03 to be under the new subtitle “Subtitle 3A. 23
Community Reinvestment and Repair Advisory Board and Fund” 24
Annotated Code of Maryland 25
(2024 Replacement Volume) 26
BY renumbering 27
Article – Alcoholic Beverages and Cannabis 28 2 HOUSE BILL 1364
Section 1–323 1
to be Section 1–322 2
Annotated Code of Maryland 3
(2024 Replacement Volume) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – Alcoholic Beverages and Cannabis 7
1–309.1. 8
(a) (1) There is an Office of Social Equity. 9
(2) The Office is an independent office that functions within the Maryland 10
Cannabis Administration. 11
(b) (1) The Governor shall appoint an Executive Director of the Office of Social 12
Equity. 13
(2) The Executive Director of the Office of Social Equity shall have at least 14
5 years of experience in civil rights advocacy, civil rights litigation, or another area of social 15
justice. 16
(c) The Office of Social Equity may employ staff and retain contractors as may be 17
required to carry out the functions of the Office. 18
(d) The Office of Social Equity shall: 19
(1) promote and encourage full participation in the regulated cannabis 20
industry by people from communities that have previously been disproportionately 21
impacted by the war on drugs in order to positively impact those communities; 22
(2) [consult with and assist the Comptroller in the administration of the] 23
WITH THE ASSISTANCE OF THE COMPTROLLER , ADMINISTER THE Community 24
Reinvestment and Repair Fund under [§ 1–322] § 1–3A–04 of this [subtitle] TITLE; 25
(3) consult with and assist the Department of Commerce in the 26
administration of the Cannabis Business Assistance Fund under § 5–1901 of the Economic 27
Development Article; 28
(4) identify and oppose regulations that unnecessarily burden or 29
undermine the legislative intent of the Office, including regulations that impose undue 30
restrictions or financial requirements; 31
HOUSE BILL 1364 3
(5) OVERSEE THE APPROPRI ATION OF FUNDS AND THE TRAINING OF 1
RECIPIENTS OF FUNDS FROM THE COMMUNITY REINVESTMENT AND REPAIR FUND 2
UNDER § 1–3A–04 OF THIS TITLE; 3
(6) provide recommendations to the Maryland Cannabis Administration on 4
regulations related to: 5
(i) diversity; and 6
(ii) social equity applications; 7
[(6)] (7) work with the Maryland Cannabis Administration to implement 8
free technical assistance for social equity and minority cannabis business applicants; 9
[(7)] (8) produce reports and recommendations on diversity and equity in 10
ownership, management, and employment in the legal cannabis economy; and 11
[(8)] (9) assist businesses with obtaining financing through the Capital 12
Access Program under Title 36, Subtitle 14 of this article. 13
[(e) (1) On or before March 1 each year, the Office of Social Equity shall produce 14
and make publicly available a report on how the funds in the Community Reinvestment 15
and Repair Fund under § 1–322 of this subtitle were allocated during the immediately 16
preceding calendar year. 17
(2) The report shall also be submitted to the General Assembly in 18
accordance with § 2–1257 of the State Government Article. 19
(3) The Office may request information from political subdivisions and 20
entities receiving distributions from the Fund to assist with the completion of the report. 21
(f) (1) On or before November 1 every 2 years, beginning in 2024, the Office of 22
Social Equity shall solicit public input on the uses of the funds in the Community 23
Reinvestment and Repair Fund under § 1–322 of this subtitle. 24
(2) On or before December 15 every 2 years, beginning in 2024, the Office 25
of Social Equity shall publish a review of the input received under paragraph (1) of this 26
subsection on a publicly accessible part of the Office’s website. 27
(3) The Office shall include in the review information on how the funds 28
received from the Fund were spent during the immediately preceding 2 calendar years.] 29
SUBTITLE 3A. COMMUNITY REINVESTMENT AND REPAIR ADVISORY BOARD AND 30
FUND. 31
1–3A–01. 32 4 HOUSE BILL 1364
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2
(B) “EXECUTIVE DIRECTOR” MEANS THE EXECUTIVE DIRECTOR OF THE 3
OFFICE OF SOCIAL EQUITY. 4
(C) “FUND” MEANS THE COMMUNITY REINVESTMENT AND REPAIR FUND. 5
(D) “OFFICE” MEANS THE OFFICE OF SOCIAL EQUITY. 6
1–3A–02. 7
(A) THE GENERAL ASSEMBLY FINDS THAT : 8
(1) THE GOAL OF REGULATI ON AND TAXATION OF C ANNABIS IN THE 9
STATE IS TO CREATE A SAFE AND REGULATED I NDUSTRY THAT BENEFIT S THE 10
PUBLIC INTEREST ; 11
(2) THE USE OF INCARCERA TION IN ENFORCING PR OHIBITIONS ON 12
THE IMPORTATION , MANUFACTURE, USE, SALE, AND DISTRIBUTION OF CANNABIS 13
VARIED WITHIN THE STATE BY JURISDICTION AND RACIAL CLASSIFIC ATION; 14
(3) ANALYSIS OF GEOGRAPH IC AND DEMOGRAPHIC 15
CHARACTERISTICS REVE ALED DISPARITIES IN ARRESTS, PROSECUTION , AND 16
IMPRISONMENT FOR CAN NABIS USE, WITH A NEGATIVE AND DISPROPORTIONATE 17
IMPACT ON SOME COMMU NITIES AND NEIGHBORH OODS WITHIN THE STATE; AND 18
(4) CONSEQUENCES OF THE DISPROPORTIONATE ENF ORCEMENT OF 19
CANNABIS–RELATED OFFENSES HAV E CONTRIBUTED TO THE ECONOMIC, PUBLIC 20
HEALTH, AND SOCIAL CO NDITIONS OF SPECIFIC COMMUNITIES AND HAVE HAD 21
SIGNIFICANT AND MEAS URABLE EFFECTS ON TH E SOCIAL AND FINANCI AL 22
RESOURCES AVAILABLE TO THE CHILDREN , FAMILIES, AND LOCAL 23
INFRASTRUCTURE OF TH ESE COMMUNITIES . 24
(B) THE GENERAL ASSEMBLY THEREFORE FI NDS THAT THE P UBLIC 25
INTEREST IS SERVED B Y: 26
(1) ACKNOWLEDGING AND RE PAIRING THE CAUSES A ND 27
CONSEQUENCES OF DISP ARITIES IN ARRESTS A ND IMPRISONMENT IN 28
PROSECUTIONS OF CANN ABIS–RELATED OFFENSES AMO NG SPECIFIC POPULATI ONS 29
AND GEOGRAPHIC REGIO NS; 30
HOUSE BILL 1364 5
(2) DEVELOPING , AMONG EXISTING MEMBERS OF COMMUNITIES 1
THAT HAVE BEEN DISPR OPORTIONATELY AND NE GATIVELY IMPACTED , THE 2
CAPACITY TO ASCERTAI N AND ADDRESS THE SO CIAL AND ECONOMIC 3
DETERMINANTS THAT AR E FUNDAMENTAL TO RED UCING THE IMPACT OF 4
LONGSTANDING INEQUIT IES AND IMPROVING EC ONOMIC, EDUCATIONAL , AND 5
HEALTH OUTCOMES ; AND 6
(3) BEING CONSISTENT WIT H SOCIAL EQUITY PRIN CIPLES AND 7
GOVERNANCE BY ALLOCA TING A SIGNIFICANT P ORTION OF TAX REVENU E FROM THE 8
ADULT–USE CANNABIS MARKET TO THE COMMUNITY REINVESTMENT AND REPAIR 9
FUND FOR DISTRIBUTION TO LOCA L JURISDICTIONS TO B E ADMINISTERED BY TH E 10
LOCAL JURISDICTIONS . 11
1–3A–03. 12
(A) THERE IS A COMMUNITY REINVESTMENT AND REPAIR ADVISORY 13
BOARD. 14
(B) THE BOARD SHALL: 15
(1) CONSIDER MATTERS SUB MITTED TO THE BOARD BY THE 16
GOVERNOR, THE GENERAL ASSEMBLY, OR THE OFFICE; 17
(2) PROVIDE OVERSIGHT AN D RECOMMENDATIONS FO R THE 18
EQUITABLE DISTRIBUTI ON AND USE OF THE COMMUNITY REINVESTMENT AND 19
REPAIR FUND; 20
(3) REVIEW AND EVALUATE THE FUND’S EXPENDITURES FOR 21
ALIGNMENT WITH THE FUND’S OBJECTIVES; AND 22
(4) MEET ANNUALLY WITH T HE EXECUTIVE DIRECTOR. 23
(C) THE OFFICE SHALL PROVIDE STAFF AND ADMINISTRA TIVE SUPPORT 24
FOR THE BOARD. 25
(D) THE BOARD CONSISTS OF THE FOLLOWING MEMBERS , APPOINTED BY 26
THE GOVERNOR ON THE RECOM MENDATION OF THE EXECUTIVE DIRECTOR: 27
(1) FIVE MEMBERS WITH EX PERIENCE IN ONE OR M ORE OF THE 28
FOLLOWING AREAS : 29
(I) COMMUNITY DEVELOPMEN T; 30
6 HOUSE BILL 1364
(II) CRIMINAL JUSTICE REF ORM OR REENTRY SERVI CES; 1
(III) PUBLIC HEALTH , PARTICULARLY IN UNDE RSERVED 2
COMMUNITIES ; OR 3
(IV) BEHAVIORAL HEA LTH, SOCIAL SERVICES , OR 4
TRAUMA–INFORMED CARE , PARTICULARLY IN UNDE RSERVED COMMUNITIES ; 5
(2) TWO MEMBERS FROM COM MUNITY–BASED ORGANIZATIONS THAT 6
FOCUS ON VIOLENCE PR EVENTION, YOUTH DEVELOPMENT , OR ECONOMIC 7
EMPOWERMENT ; 8
(3) TWO MEMBERS FROM COM MUNITIES DISPROPORTI ONATELY 9
IMPACTED BY THE ENFO RCEMENT OF CANNABIS LAWS, WITH AT LEAST ONE ME MBER 10
HAVING DIRECT LIVED EXPERIENCE; 11
(4) ONE MEMBER WHO IS A PROFESSIONAL IN ACCO UNTING, FINANCE, 12
OR AUDITING; 13
(5) ONE MEMBER WHO IS AN EXPERT IN NONPROFIT OR PUBLIC 14
SECTOR GRANT ADMINIS TRATION AND EVALUATI ON; AND 15
(6) SIX MEMBERS DEEMED A PPROPRIATE BY THE GOVERNOR TO 16
MEET THE GOALS OF TH E BOARD. 17
(E) THE BOARD SHALL ELECT A C HAIR FROM AMONG ITS MEMBERS. 18
(F) (1) THE TERM OF A MEMBER IS 2 YEARS. 19
(2) A MEMBER CONTINUES TO SERVE ON THE BOARD UNTIL A 20
SUCCESSOR IS APPOINT ED. 21
(3) A MEMBER MUST BE A RES IDENT OF THE STATE. 22
(4) THE MEMBERSHIP OF THE BOARD SHALL REFLECT T HE 23
DIVERSITY OF THE STATE TO THE EXTENT P RACTICABLE. 24
(G) A MEMBER OF THE BOARD: 25
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE BOARD; 26
BUT 27
HOUSE BILL 1364 7
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 1
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 2
[1–322.] 1–3A–04. 3
(a) (1) There is a Community Reinvestment and Repair Fund. 4
(2) The purpose of the Fund is to provide funds to community–based 5
organizations that serve communities determined by the Office [of Social Equity], in 6
consultation with the Office of the Attorney General, to have been the most impacted by 7
disproportionate enforcement of the cannabis prohibition before July 1, 2022. 8
(3) The [Comptroller] EXECUTIVE DIRECTOR shall administer the Fund. 9
(4) (i) The Fund is a special, nonlapsing fund that is not subject to § 10
7–302 of the State Finance and Procurement Article. 11
(ii) The State Treasurer shall hold the Fund separately, and the 12
Comptroller shall account for the Fund. 13
(5) The Fund consists of: 14
(i) sales and use tax revenue distributed to the Fund under § 15
2–1302.2 of the Tax – General Article; 16
(ii) conversion fees paid by businesses under § 36–403 of this article; 17
and 18
(iii) any other money from any other source accepted for the benefit 19
of the Fund, in accordance with any conditions adopted by the [Comptroller] EXECUTIVE 20
DIRECTOR for the acceptance of donations or gifts to the Fund. 21
(6) (i) The Fund may be used only for: 22
1. funding community–based initiatives intended to benefit 23
low–income communities, INCLUDING: 24
A. BEHAVIORAL HEALTH CR ISIS RESPONSE SERVICES; 25
B. EDUCATION AND AFTER –SCHOOL PROGRAMS ; 26
C. TRUANCY AND ABSENTEE ISM INTERVENTION 27
PROGRAMS; 28
8 HOUSE BILL 1364
D. HOUSING AND HOMELESS NESS PREVENTION 1
INITIATIVES; 2
E. TRANSPORTATION IMPRO VEMENTS IN HIGH –DENSITY 3
AREAS THAT HAVE PUBL IC TRANSPORTATION ; 4
F. JOB TRAINING AND WOR KFORCE DEVELOPMENT 5
PROGRAMS; 6
G. COMMUNITY CHILD CARE AND RECREATIONAL 7
SERVICES; AND 8
H. PROGRAMS THAT BENEFI T INDIVIDUALS AND 9
FAMILIES IMPACTED BY INCARCERATION ; 10
2. funding community–based initiatives that serve 11
disproportionately impacted areas, as defined in § 36–101 of this article; and 12
3. any related administrative expenses THAT DO NOT 13
EXCEED 5% OF THE FUNDS RECEIVE D IN THE FISCAL YEAR . 14
(ii) Money may not be expended from the Fund for law enforcement 15
agencies or activities. 16
(iii) Money expended from the Fund is supplemental to and may not 17
supplant funding that otherwise would be appropriated for preexisting local government 18
programs. 19
(7) (i) The State Treasurer shall invest the money of the Fund in the 20
same manner as other State money may be invested. 21
(ii) Any interest earnings of the Fund shall be credited to the 22
General Fund of the State. 23
(8) No part of the Fund may revert or be credited to: 24
(i) the General Fund of the State; or 25
(ii) any other special fund of the State. 26
(9) The [Comptroller] EXECUTIVE DIRECTOR shall pay out money from 27
the Fund. 28
(10) The Fund is subject to audit by the Office of Legislative Audits as 29
provided for in § 2–1220 of the State Government Article. 30
HOUSE BILL 1364 9
(b) (1) Based on the percentage allocable to each county determined by the 1
Office [of Social Equity and reported by the Office to the Comptroller on or before July 31 2
each year], the [Comptroller] EXECUTIVE DIRECTOR shall distribute funds from the 3
Fund to each county in an amount that, for the period from July 1, 2002, to January 1, 4
2023, both inclusive, is proportionate to the total number of cannabis possession charges in 5
the county compared to the total number of cannabis possession charges in the State. 6
(2) FOR ANY DISTRIBUTION OF FUNDS TO A COUNTY UNDER 7
PARAGRAPH (1) OF THIS SUBSECTION , THE COUNTY SHALL : 8
(I) TREAT THE FUNDS AS S PECIAL FUNDS RESTRIC TED TO THE 9
USES SPECIFIED IN SU BSECTION (A)(6) OF THIS SECTION; AND 10
(II) HOLD THE FUNDS SEPARA TELY FROM OTHER REVE NUE AND 11
GENERAL FUNDS . 12
(3) Subject to the limitations under subsection (a)(6) of this section, each 13
county shall adopt a law establishing the purpose for which money received from the Fund 14
may be used. 15
(C) (1) THE OFFICE SHALL REQUIRE EACH COUNTY TO DEVEL OP A PLAN 16
FOR THE DISTRIBUTION OF FUNDS TO COMMUNIT Y–BASED ORGANIZATIONS FOR USE 17
IN ACCORDANCE WITH T HIS SECTION. 18
(2) THE PLAN DEVELOPED BY A COUNTY SHALL BE : 19
(I) ESTABLISHED BEFORE D ISTRIBUTING FUNDS UN DER THIS 20
SECTION; 21
(II) DEVELOPED IN CONSULT ATION WITH STAKEHOLD ERS; AND 22
(III) THE SUBJECT OF A PUB LIC HEARING BEFORE F INALIZING 23
THE PLAN. 24
(3) THE COUNTY’S ADMINISTRATION AND DISTRIBUTION OF FUND S IN 25
ACCORDANCE WITH THIS SECTION IS SOLELY TH E RESPONSIBILITY OF THE COU NTY 26
AND MAY NOT BE DELEG ATED TO AN OUTSIDE O RGANIZATION. 27
(4) THE OFFICE SHALL ADOPT RE GULATIONS TO CARRY O UT THIS 28
SECTION. 29
(D) ON OR BEFORE OCTOBER 1, 2026, AND EACH OCTOBER 1 THEREAFTER , 30
EACH COUNTY SHALL SU BMIT A REPORT TO THE OFFICE ON: 31
10 HOUSE BILL 1364
(1) THE AMOUNT OF FUNDS RECEIVED FROM THE FUND UNDER 1
SUBSECTION (B)(1) OF THIS SECTION; 2
(2) THE ORGANIZATIONS TH AT RECEIVED FUNDING FROM THE 3
COUNTY UNDER THIS SE CTION; 4
(3) THE METHODS USED BY THE COUNTY TO SOLICI T, REVIEW, AND 5
SELECT ORGANIZATIONS THAT M AY BE ELIGIBLE FOR F UNDING UNDER THIS 6
SECTION; AND 7
(4) ADMINISTRATIVE EXPEN SES RELATED TO THE C OUNTY’S 8
ADMINISTRATION AND D ISTRIBUTION OF THE F UNDS RECEIVED UNDER 9
SUBSECTION (B)(1) OF THIS SECTION. 10
SECTION 2. AND BE IT FURTHER ENAC TED, That Section(s) 1–323 of Article – 11
Alcoholic Beverages and Cannabis of the Annotated Code of Maryland be renumbered to be 12
Section(s) 1–322. 13
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
October 1, 2025. 15