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.
*hb1364*
HOUSE BILL 1364
A3 5lr3269
CF SB 894
By: Delegate Qi
Introduced and read first time: February 7, 2025
Assigned to: Economic Matters
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 22, 2025
CHAPTER ______
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 of Social Equity to report on the Community Reinvestment 6
and Repair Fund and to solicit public input on the uses of the Fund and publish a 7
review of the input; requiring the Office to oversee the appropriation of funds from 8
the Fund and to train fund recipients; establishing the Community Reinvestment 9
and Repair Advisory Board; altering certain limitations on the use of the Fund; 10
limiting certain administrative costs to administer the Fund to a certain amount; 11
requiring counties to administer funds from the Fund in a certain manner; requiring 12
the Office to require each county to develop a plan for the distribution of certain 13
funds to community–based organizations and to report certain information to the 14
Office by a certain date each year; and generally relating to the Community 15
Reinvestment and Repair Fund and the Office of Social Equity. 16
BY repealing and reenacting, without amendments, 17
Article – General Provisions 18
Section 1–110 19
Annotated Code of Maryland 20
(2019 Replacement Volume and 2024 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – Alcoholic Beverages and Cannabis 23 2 HOUSE BILL 1364
Section 1–309.1 and 1–322 1
Annotated Code of Maryland 2
(2024 Replacement Volume) 3
BY adding to 4
Article – Alcoholic Beverages and Cannabis 5
Section 1–3A–01 through 1–3A–03 and 1–3A–02 to be under the new subtitle 6
“Subtitle 3A. Community Reinvestment and Repair Advisory Board and 7
Fund” 8
Annotated Code of Maryland 9
(2024 Replacement Volume) 10
BY renumbering 11
Article – Alcoholic Beverages and Cannabis 12
Section 1–323 13
to be Section 1–322 14
Annotated Code of Maryland 15
(2024 Replacement Volume) 16
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18
Article – General Provisions 19
1–110. 20
“Includes” or “including” means includes or including by way of illustration and not 21
by way of limitation. 22
Article – Alcoholic Beverages and Cannabis 23
1–309.1. 24
(a) (1) There is an Office of Social Equity. 25
(2) The Office is an independent office that functions within the Maryland 26
Cannabis Administration. 27
(b) (1) The Governor shall appoint an Executive Director of the Office of Social 28
Equity. 29
(2) The Executive Director of the Office of Social Equity shall have at least 30
5 years of experience in civil rights advocacy, civil rights litigation, or another area of social 31
justice. 32
(c) The Office of Social Equity may employ staff and retain contractors as may be 33
required to carry out the functions of the Office. 34 HOUSE BILL 1364 3
(d) The Office of Social Equity shall: 1
(1) promote and encourage full participation in the regulated cannabis 2
industry by people from communities that have previously been disproportionately 3
impacted by the war on drugs in order to positively impact those communities; 4
(2) [consult with and assist the Comptroller in the administration of the] 5
WITH THE ASSISTANCE OF THE COMPTROLLER , ADMINISTER OVERSEE THE 6
Community Reinvestment and Repair Fund under [§ 1–322] § 1–3A–04 § 1–3A–03 of this 7
[subtitle] TITLE; 8
(3) consult with and assist the Department of Commerce in the 9
administration of the Cannabis Business Assistance Fund under § 5–1901 of the Economic 10
Development Article; 11
(4) identify and oppose regulations that unnecessarily burden or 12
undermine the legislative intent of the Office, including regulations that impose undue 13
restrictions or financial requirements; 14
(5) OVERSEE THE APPROPRI ATION OF FUNDS AND T HE TRAINING OF 15
RECIPIENTS OF FUNDS FROM THE COMMUNITY REINVESTMENT AND REPAIR FUND 16
UNDER § 1–3A–04 § 1–3A–03 OF THIS TITLE; 17
(6) provide recommendations to the Maryland Cannabis Administration on 18
regulations related to: 19
(i) diversity; and 20
(ii) social equity applications; 21
[(6)] (7) work with the Maryland Cannabis Administration to implement 22
free technical assistance for social equity and minority cannabis business applicants; 23
[(7)] (8) produce reports and recommendations on diversity and equity in 24
ownership, management, and employment in the legal cannabis economy; and 25
[(8)] (9) assist businesses with obtaining financing through the Capital 26
Access Program under Title 36, Subtitle 14 of this article. 27
[(e) (1) On or before March 1 each year, the Office of Social Equity shall produce 28
and make publicly available a report on how the funds in the Community Reinvestment 29
and Repair Fund under § 1–322 of this subtitle were allocated during the immediately 30
preceding calendar year. 31
4 HOUSE BILL 1364
(2) The report shall also be submitted to the General Assembly in 1
accordance with § 2–1257 of the State Government Article. 2
(3) The Office may request information from political subdivisions and 3
entities receiving distributions from the Fund to assist with the completion of the report. 4
(f) (1) On or before November 1 every 2 years, beginning in 2024, the Office of 5
Social Equity shall solicit public input on the uses of the funds in the Community 6
Reinvestment and Repair Fund under § 1–322 of this subtitle. 7
(2) On or before December 15 every 2 years, beginning in 2024, the Office 8
of Social Equity shall publish a review of the input received under paragraph (1) of this 9
subsection on a publicly accessible part of the Office’s website. 10
(3) The Office shall include in the review information on how the funds 11
received from the Fund were spent during the immediately preceding 2 calendar years.] 12
SUBTITLE 3A. COMMUNITY REINVESTMENT AND REPAIR ADVISORY BOARD AND 13
FUND. 14
1–3A–01. 15
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 16
INDICATED. 17
(B) “EXECUTIVE DIRECTOR” MEANS THE EXECUTIVE DIRECTOR OF THE 18
OFFICE OF SOCIAL EQUITY. 19
(C) “FUND” MEANS THE COMMUNITY REINVESTMENT AND REPAIR FUND. 20
(D) “OFFICE” MEANS THE OFFICE OF SOCIAL EQUITY. 21
1–3A–02. 22
(A) THE GENERAL ASSEMBLY FINDS THAT : 23
(1) THE GOAL OF REGULATI ON AND TAXATION OF C ANNABIS IN THE 24
STATE IS TO CREATE A SAFE AND REGULATED I NDUSTRY THAT BENEFIT S THE 25
PUBLIC INTEREST ; 26
(2) THE USE OF INCARCERA TION IN ENFORCING PR OHIBITIONS ON 27
THE IMPORTATION , MANUFACTURE , USE, SALE, AND DISTRIBUTION OF CANNABIS 28
VARIED WITHIN THE STATE BY JURISDICTION AND RACIAL CLASSIFIC ATION; 29
HOUSE BILL 1364 5
(3) ANALYSIS OF GEOGRAPH IC AND DEMOGRAPHIC 1
CHARACTERISTICS REVE ALED DISPARITIES IN ARRESTS, PROSECUTION , AND 2
IMPRISONMENT FOR CAN NABIS USE, WITH A NEGATIVE AND DISPROPORTIONATE 3
IMPACT ON SOME COMMU NITIES AND NEIGHBORH OODS WITHIN THE STATE; AND 4
(4) CONSEQUENCES OF THE DISPROPORTIONATE ENFORCEMENT OF 5
CANNABIS–RELATED OFFENSES HAV E CONTRIBUTED TO THE ECONOMIC, PUBLIC 6
HEALTH, AND SOCIAL CONDITION S OF SPECIFIC COMMUN ITIES AND HAVE HAD 7
SIGNIFICANT AND MEAS URABLE EFFECTS ON TH E SOCIAL AND FINANCI AL 8
RESOURCES AVAILABLE TO THE CHILDREN , FAMILIES, AND LOCAL 9
INFRASTRUCTURE OF TH ESE COMMUNITIES . 10
(B) THE GENERAL ASSEMBLY THEREFORE FI NDS THAT THE PUBLIC 11
INTEREST IS SERVED B Y: 12
(1) ACKNOWLEDGING AND RE PAIRING THE CAUSES A ND 13
CONSEQUENCES OF DISP ARITIES IN ARRESTS A ND IMPRISONMENT IN 14
PROSECUTIONS O F CANNABIS–RELATED OFFENSES AMO NG SPECIFIC POPULATI ONS 15
AND GEOGRAPHIC REGIO NS; 16
(2) DEVELOPING , AMONG EXISTING MEMBE RS OF COMMUNITIES 17
THAT HAVE BEEN DISPR OPORTIONATELY AND NE GATIVELY IMPACTED , THE 18
CAPACITY TO ASCERTAI N AND ADDRESS THE SO CIAL AND ECONOMIC 19
DETERMINANTS THAT AR E FUNDAMENTAL TO RED UCING THE IMPACT OF 20
LONGSTANDING INEQUIT IES AND IMPROVING EC ONOMIC, EDUCATIONAL , AND 21
HEALTH OUTCOMES ; AND 22
(3) BEING CONSISTENT WIT H SOCIAL EQUITY PRIN CIPLES AND 23
GOVERNANCE BY ALLOCA TING A SIGNIFICANT P ORTION OF TAX REVENUE FROM THE 24
ADULT–USE CANNABIS MARKET TO THE COMMUNITY REINVESTMENT AND REPAIR 25
FUND FOR DISTRIBUTION TO LOCAL JURISDICTIO NS TO BE ADMINISTERE D BY THE 26
LOCAL JURISDICTIONS . 27
1–3A–03. 28
(A) THERE IS A COMMUNITY REINVESTMENT AND REPAIR ADVISORY 29
BOARD. 30
(B) THE BOARD SHALL: 31
(1) CONSIDER MATTERS SUB MITTED TO THE BOARD BY THE 32
GOVERNOR, THE GENERAL ASSEMBLY, OR THE OFFICE; 33
6 HOUSE BILL 1364
(2) PROVIDE OVERSIGHT AN D RECOMMENDATIONS FO R THE 1
EQUITABLE DISTRIBUTI ON AND USE OF THE COMMUNITY REINVESTMENT AND 2
REPAIR FUND; 3
(3) REVIEW AND EVALUATE THE FUND’S EXPENDITURES FOR 4
ALIGNMENT WITH THE FUND’S OBJECTIVES; AND 5
(4) MEET ANNUALLY WITH T HE EXECUTIVE DIRECTOR. 6
(C) THE OFFICE SHALL PROVIDE STAFF AND ADMINISTRA TIVE SUPPORT 7
FOR THE BOARD. 8
(D) THE BOARD CONSISTS OF T HE FOLLOWING MEMBERS , APPOINTED BY 9
THE GOVERNOR ON THE RECOM MENDATION OF THE EXECUTIVE DIRECTOR: 10
(1) FIVE MEMBERS WITH EX PERIENCE IN ONE OR M ORE OF THE 11
FOLLOWING AREAS : 12
(I) COMMUNITY DEVELOPMEN T; 13
(II) CRIMINAL JUSTICE REF ORM OR REENTRY SERVI CES; 14
(III) PUBLIC HEALTH , PARTICULARLY IN UNDE RSERVED 15
COMMUNITIES ; OR 16
(IV) BEHAVIORAL HEALTH , SOCIAL SERVICES , OR 17
TRAUMA–INFORMED CARE , PARTICULARLY IN UNDE RSERVED COMMUNITIES ; 18
(2) TWO MEMBERS FROM COM MUNITY–BASED ORGANIZATIONS THAT 19
FOCUS ON VIOLENCE PREVENTION , YOUTH DEVELOPMENT , OR ECONOMIC 20
EMPOWERMENT ; 21
(3) TWO MEMBERS FROM COM MUNITIES DISPROPORTI ONATELY 22
IMPACTED BY THE ENFO RCEMENT OF CANNABIS LAWS, WITH AT LEAST ONE ME MBER 23
HAVING DIRECT LIVED EXPERIENCE; 24
(4) ONE MEMBER WHO IS A PROFESSIONAL IN ACCOUNTIN G, FINANCE, 25
OR AUDITING; 26
(5) ONE MEMBER WHO IS AN EXPERT IN NONPROFIT OR PUBLIC 27
SECTOR GRANT ADMINIS TRATION AND EVALUATI ON; AND 28
(6) SIX MEMBERS DEEMED A PPROPRIATE BY THE GOVERNOR TO 29
MEET THE GOALS OF TH E BOARD. 30 HOUSE BILL 1364 7
(E) THE BOARD SHALL ELECT A CHAIR FRO M AMONG ITS MEMBERS . 1
(F) (1) THE TERM OF A MEMBER IS 2 YEARS. 2
(2) A MEMBER CONTINUES TO SERVE ON THE BOARD UNTIL A 3
SUCCESSOR IS APPOINT ED. 4
(3) A MEMBER MUST BE A RES IDENT OF THE STATE. 5
(4) THE MEMBERSHIP OF THE BOARD SHALL REFLECT THE 6
DIVERSITY OF THE STATE TO THE EXTENT P RACTICABLE. 7
(G) A MEMBER OF THE BOARD: 8
(1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE BOARD; 9
BUT 10
(2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 11
STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 12
[1–322.] 1–3A–04. 1–3A–03. 13
(a) (1) There is a Community Reinvestment and Repair Fund. 14
(2) The purpose of the Fund is to provide funds to community–based 15
organizations that serve communities determined by the Office [of Social Equity], in 16
consultation with the Office of the Attorney General, to have been the most impacted by 17
disproportionate enforcement of the cannabis prohibition before July 1, 2022. 18
(3) The [Comptroller] EXECUTIVE DIRECTOR shall administer the Fund. 19
(4) (i) The Fund is a special, nonlapsing fund that is not subject to § 20
7–302 of the State Finance and Procurement Article. 21
(ii) The State Treasurer shall hold the Fund separately, and the 22
Comptroller shall account for the Fund. 23
(5) The Fund consists of: 24
(i) sales and use tax revenue distributed to the Fund under § 25
2–1302.2 of the Tax – General Article; 26
(ii) conversion fees paid by businesses under § 36–403 of this article; 27
and 28
8 HOUSE BILL 1364
(iii) any other money from any other source accepted for the benefit 1
of the Fund, in accordance with any conditions adopted by the [Comptroller] EXECUTIVE 2
DIRECTOR for the acceptance of donations or gifts to the Fund. 3
(6) (i) The Fund may be used only for: 4
1. funding community–based initiatives intended to benefit 5
low–income communities, INCLUDING: 6
A. BEHAVIORAL HEALTH CR ISIS RESPONSE SERVIC ES; 7
B. EDUCATION AND AFTER –SCHOOL PROGRAMS ; 8
C. TRUANCY AND ABSENTEE ISM INTERVENTION 9
PROGRAMS; 10
D. HOUSING AND HOMELESS NESS PREVENTION 11
INITIATIVES; 12
E. TRANSPORTATION IMPRO VEMENTS IN HIGH –DENSITY 13
AREAS THAT HAVE PUBL IC TRANSPORTATION ; 14
F. JOB TRAINING AND WOR KFORCE DEVELOPMENT 15
PROGRAMS; 16
G. COMMUNITY CHILD CARE AND RECREATIONAL 17
SERVICES; AND 18
H. PROGRAMS THAT BENEFI T INDIVIDUALS AND 19
FAMILIES IMPACTED BY I NCARCERATION ; 20
2. funding community–based initiatives that serve 21
disproportionately impacted areas, as defined in § 36–101 of this article; and 22
3. any related administrative expenses INCURRED BY A 23
LOCAL GOVERNMENT IN ADMINISTER ING THE FUNDS THAT DO NOT EXCEED 5% 15% 24
OF THE FUNDS RECEIVE D IN THE FISCAL YEAR . 25
(ii) Money may not be expended from the Fund for law enforcement 26
agencies or activities. 27
(iii) Money expended from the Fund is supplemental to and may not 28
supplant funding that otherwise would be appropriated for preexisting local government 29
programs. 30
HOUSE BILL 1364 9
(7) (i) The State Treasurer shall invest the money of the Fund in the 1
same manner as other State money may be invested. 2
(ii) Any interest earnings of the Fund shall be credited to the 3
General Fund of the State. 4
(8) No part of the Fund may revert or be credited to: 5
(i) the General Fund of the State; or 6
(ii) any other special fund of the State. 7
(9) The [Comptroller] EXECUTIVE DIRECTOR shall pay out money from 8
the Fund. 9
(10) The Fund is subject to audit by the Office of Legislative Audits as 10
provided for in § 2–1220 of the State Government Article. 11
(b) (1) 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] EXECUTIVE DIRECTOR shall distribute funds from the 14
Fund to each county in an amount that, for the period from July 1, 2002, to January 1, 15
2023, both inclusive, is proportionate to the total number of cannabis possession charges in 16
the county compared to the total number of cannabis possession charges in the State. 17
(2) FOR ANY DISTRIBUTION OF FUNDS TO A COUNTY UNDER 18
PARAGRAPH (1) OF THIS SUBSEC TION, THE COUNTY SHALL : 19
(I) TREAT THE FUNDS AS S PECIAL FUNDS RESTRIC TED TO THE 20
USES SPECIFIED IN SU BSECTION (A)(6) OF THIS SECTION; AND 21
(II) HOLD THE FUNDS SEPAR ATELY FROM OTHER REV ENUE AND 22
GENERAL FUNDS . 23
(3) Subject to the limitations under subsection (a)(6) of this section, each 24
county shall adopt a law establishing the purpose for which money received from the Fund 25
may be used. 26
(C) (1) THE OFFICE SHALL REQUIRE EACH COUNTY TO DEVEL OP A PLAN 27
FOR THE DISTRIBUTION OF FUNDS TO COMMUNIT Y–BASED ORGANIZATIONS FOR US E 28
IN ACCORDANCE WITH T HIS SECTION. 29
(2) THE PLAN DEVELOPED BY A COUNTY SHALL BE : 30
(I) ESTABLISHED BEFORE D ISTRIBUTING FUNDS UN DER THIS 31
SECTION; 32 10 HOUSE BILL 1364
(II) DEVELOPED IN CONSULT ATION WITH STAKEHOLD ERS; AND 1
(III) THE SUBJECT OF A PUBLIC HEARING BEFOR E FINALIZING 2
THE PLAN. 3
(3) THE COUNTY’S ADMINISTRATION AND DISTRIBUTION OF FUND S IN 4
ACCORDANCE WITH THIS SECTION IS SOLELY TH E RESPONSIBILITY OF THE COUNTY 5
AND MAY NOT BE DELEG ATED TO AN OUTSIDE O RGANIZATION. 6
(4) THE ON OR BEFORE OCTOBER 1, 2025, THE OFFICE SHALL ADOPT 7
REGULATIONS TO CARRY OUT THIS SECTION . 8
(D) ON OR BEFORE OCTOBER 1, 2026, AND EACH OCTOBER 1 THEREAFTER , 9
EACH COUNTY SHALL SU BMIT A REPORT TO THE OFFICE ON: 10
(1) THE AMOUNT OF FUNDS RECEIVED FROM THE FUND UNDER 11
SUBSECTION (B)(1) OF THIS SECTION; 12
(2) THE ORGANIZATIONS TH AT RECEIVED FUNDING FROM THE 13
COUNTY UNDER THIS SE CTION; 14
(3) THE METHODS USED BY THE COUNTY TO SOLICI T, REVIEW, AND 15
SELECT ORGANIZATIONS THAT MAY BE ELIGIBLE FOR FUNDING UNDER TH IS 16
SECTION; AND 17
(4) ADMINISTRATIVE EXPEN SES RELATED TO THE C OUNTY’S 18
ADMINISTRATION AND D ISTRIBUTION OF THE F UNDS RECEIVED UNDER 19
SUBSECTION (B)(1) OF THIS SECTION. 20
SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 1 –323 of Article – 21
Alcoholic Beverages and Cannabis of the Annotated Code of Maryland be renumbered to be 22
Section(s) 1–322. 23
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 24
October June 1, 2025. 25