MD
Maryland House Bill HB1364

Maryland 2025 Regular Session

Maryland House Bill HB1364 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 *hb1364*
96
107 HOUSE BILL 1364
118 A3 5lr3269
129 CF SB 894
1310 By: Delegate Qi
1411 Introduced and read first time: February 7, 2025
1512 Assigned to: Economic Matters
16-Committee Report: Favorable with amendments
17-House action: Adopted
18-Read second time: March 22, 2025
1913
20-CHAPTER ______
14+A BILL ENTITLED
2115
2216 AN ACT concerning 1
2317
2418 Office of Social Equity – Community Reinvestment and Repair Fund – Advisory 2
2519 Board and Modifications 3
2620
2721 FOR the purpose of requiring the Office of Social Equity, rather than the Comptroller, to 4
2822 administer the Community Reinvestment and Repair Fund; repealing provisions of 5
29-law requiring the Office of Social Equity to report on the Community Reinvestment 6
30-and Repair Fund and to solicit public input on the uses of the Fund and publish a 7
31-review of the input; requiring the Office to oversee the appropriation of funds from 8
32-the Fund and to train fund recipients; establishing the Community Reinvestment 9
33-and Repair Advisory Board; altering certain limitations on the use of the Fund; 10
34-limiting certain administrative costs to administer the Fund to a certain amount; 11
35-requiring counties to administer funds from the Fund in a certain manner; requiring 12
36-the Office to require each county to develop a plan for the distribution of certain 13
37-funds to community–based organizations and to report certain information to the 14
38-Office by a certain date each year; and generally relating to the Community 15
39-Reinvestment and Repair Fund and the Office of Social Equity. 16
23+law requiring the Office to report on the Fund and to solicit public input on the uses 6
24+of the Fund and publish a review of the input; requiring the Office to oversee the 7
25+appropriation of funds from the Fund and to train fund recipients; establishing the 8
26+Community Reinvestment and Repair Advisory Board; altering certain limitations 9
27+on the use of the Fund; limiting certain administrative costs to administer the Fund 10
28+to a certain amount; requiring counties to administer funds from the Fund in a 11
29+certain manner; requiring the Office to require each county to develop a plan for the 12
30+distribution of certain funds to community–based organizations and to report certain 13
31+information to the Office by a certain date each year; and generally relating to the 14
32+Community Reinvestment and Repair Fund and the Office of Social Equity. 15
4033
41-BY repealing and reenacting, without amendments, 17
42- Article – General Provisions 18
43- Section 1–110 19
44- Annotated Code of Maryland 20
45- (2019 Replacement Volume and 2024 Supplement) 21
34+BY repealing and reenacting, with amendments, 16
35+ Article – Alcoholic Beverages and Cannabis 17
36+Section 1–309.1 and 1–322 18
37+ Annotated Code of Maryland 19
38+ (2024 Replacement Volume) 20
4639
47-BY repealing and reenacting, with amendments, 22
48- Article – Alcoholic Beverages and Cannabis 23 2 HOUSE BILL 1364
40+BY adding to 21
41+ Article – Alcoholic Beverages and Cannabis 22
42+Section 1–3A–01 through 1–3A–03 to be under the new subtitle “Subtitle 3A. 23
43+Community Reinvestment and Repair Advisory Board and Fund” 24
44+ Annotated Code of Maryland 25
45+ (2024 Replacement Volume) 26
46+
47+BY renumbering 27
48+ Article – Alcoholic Beverages and Cannabis 28 2 HOUSE BILL 1364
4949
5050
51-Section 1–309.1 and 1–322 1
52- Annotated Code of Maryland 2
53- (2024 Replacement Volume) 3
51+Section 1–323 1
52+to be Section 1–322 2
53+ Annotated Code of Maryland 3
54+ (2024 Replacement Volume) 4
5455
55-BY adding to 4
56- Article – Alcoholic Beverages and Cannabis 5
57-Section 1–3A–01 through 1–3A–03 and 1–3A–02 to be under the new subtitle 6
58-“Subtitle 3A. Community Reinvestment and Repair Advisory Board and 7
59-Fund” 8
60- Annotated Code of Maryland 9
61- (2024 Replacement Volume) 10
56+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
57+That the Laws of Maryland read as follows: 6
6258
63-BY renumbering 11
64- Article – Alcoholic Beverages and Cannabis 12
65-Section 1–323 13
66-to be Section 1–322 14
67- Annotated Code of Maryland 15
68- (2024 Replacement Volume) 16
59+Article – Alcoholic Beverages and Cannabis 7
6960
70- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
71-That the Laws of Maryland read as follows: 18
61+1–309.1. 8
7262
73-Article – General Provisions 19
63+ (a) (1) There is an Office of Social Equity. 9
7464
75-1–110. 20
65+ (2) The Office is an independent office that functions within the Maryland 10
66+Cannabis Administration. 11
7667
77- “Includes” or “including” means includes or including by way of illustration and not 21
78-by way of limitation. 22
68+ (b) (1) The Governor shall appoint an Executive Director of the Office of Social 12
69+Equity. 13
7970
80-Article – Alcoholic Beverages and Cannabis 23
71+ (2) The Executive Director of the Office of Social Equity shall have at least 14
72+5 years of experience in civil rights advocacy, civil rights litigation, or another area of social 15
73+justice. 16
8174
82-1–309.1. 24
75+ (c) The Office of Social Equity may employ staff and retain contractors as may be 17
76+required to carry out the functions of the Office. 18
8377
84- (a) (1) There is an Office of Social Equity. 25
78+ (d) The Office of Social Equity shall: 19
8579
86- (2) The Office is an independent office that functions within the Maryland 26
87-Cannabis Administration. 27
80+ (1) promote and encourage full participation in the regulated cannabis 20
81+industry by people from communities that have previously been disproportionately 21
82+impacted by the war on drugs in order to positively impact those communities; 22
8883
89- (b) (1) The Governor shall appoint an Executive Director of the Office of Social 28
90-Equity. 29
84+ (2) [consult with and assist the Comptroller in the administration of the] 23
85+WITH THE ASSISTANCE OF THE COMPTROLLER , ADMINISTER THE Community 24
86+Reinvestment and Repair Fund under [§ 1–322] § 1–3A–04 of this [subtitle] TITLE; 25
9187
92- (2) The Executive Director of the Office of Social Equity shall have at least 30
93-5 years of experience in civil rights advocacy, civil rights litigation, or another area of social 31
94-justice. 32
88+ (3) consult with and assist the Department of Commerce in the 26
89+administration of the Cannabis Business Assistance Fund under § 5–1901 of the Economic 27
90+Development Article; 28
9591
96- (c) The Office of Social Equity may employ staff and retain contractors as may be 33
97-required to carry out the functions of the Office. 34 HOUSE BILL 1364 3
92+ (4) identify and oppose regulations that unnecessarily burden or 29
93+undermine the legislative intent of the Office, including regulations that impose undue 30
94+restrictions or financial requirements; 31
95+ HOUSE BILL 1364 3
96+
97+
98+ (5) OVERSEE THE APPROPRI ATION OF FUNDS AND THE TRAINING OF 1
99+RECIPIENTS OF FUNDS FROM THE COMMUNITY REINVESTMENT AND REPAIR FUND 2
100+UNDER § 1–3A–04 OF THIS TITLE; 3
101+
102+ (6) provide recommendations to the Maryland Cannabis Administration on 4
103+regulations related to: 5
104+
105+ (i) diversity; and 6
106+
107+ (ii) social equity applications; 7
108+
109+ [(6)] (7) work with the Maryland Cannabis Administration to implement 8
110+free technical assistance for social equity and minority cannabis business applicants; 9
111+
112+ [(7)] (8) produce reports and recommendations on diversity and equity in 10
113+ownership, management, and employment in the legal cannabis economy; and 11
114+
115+ [(8)] (9) assist businesses with obtaining financing through the Capital 12
116+Access Program under Title 36, Subtitle 14 of this article. 13
117+
118+ [(e) (1) On or before March 1 each year, the Office of Social Equity shall produce 14
119+and make publicly available a report on how the funds in the Community Reinvestment 15
120+and Repair Fund under § 1–322 of this subtitle were allocated during the immediately 16
121+preceding calendar year. 17
122+
123+ (2) The report shall also be submitted to the General Assembly in 18
124+accordance with § 2–1257 of the State Government Article. 19
125+
126+ (3) The Office may request information from political subdivisions and 20
127+entities receiving distributions from the Fund to assist with the completion of the report. 21
128+
129+ (f) (1) On or before November 1 every 2 years, beginning in 2024, the Office of 22
130+Social Equity shall solicit public input on the uses of the funds in the Community 23
131+Reinvestment and Repair Fund under § 1–322 of this subtitle. 24
132+
133+ (2) On or before December 15 every 2 years, beginning in 2024, the Office 25
134+of Social Equity shall publish a review of the input received under paragraph (1) of this 26
135+subsection on a publicly accessible part of the Office’s website. 27
136+
137+ (3) The Office shall include in the review information on how the funds 28
138+received from the Fund were spent during the immediately preceding 2 calendar years.] 29
139+
140+SUBTITLE 3A. COMMUNITY REINVESTMENT AND REPAIR ADVISORY BOARD AND 30
141+FUND. 31
142+
143+1–3A–01. 32 4 HOUSE BILL 1364
98144
99145
100146
101- (d) The Office of Social Equity shall: 1
147+ (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 1
148+INDICATED. 2
102149
103- (1) promote and encourage full participation in the regulated cannabis 2
104-industry by people from communities that have previously been disproportionately 3
105-impacted by the war on drugs in order to positively impact those communities; 4
150+ (B) “EXECUTIVE DIRECTOR” MEANS THE EXECUTIVE DIRECTOR OF THE 3
151+OFFICE OF SOCIAL EQUITY. 4
106152
107- (2) [consult with and assist the Comptroller in the administration of the] 5
108-WITH THE ASSISTANCE OF THE COMPTROLLER , ADMINISTER OVERSEE THE 6
109-Community Reinvestment and Repair Fund under [§ 1–322] § 1–3A–04 § 1–3A–03 of this 7
110-[subtitle] TITLE; 8
153+ (C) “FUND” MEANS THE COMMUNITY REINVESTMENT AND REPAIR FUND. 5
111154
112- (3) consult with and assist the Department of Commerce in the 9
113-administration of the Cannabis Business Assistance Fund under § 5–1901 of the Economic 10
114-Development Article; 11
155+ (D) “OFFICE” MEANS THE OFFICE OF SOCIAL EQUITY. 6
115156
116- (4) identify and oppose regulations that unnecessarily burden or 12
117-undermine the legislative intent of the Office, including regulations that impose undue 13
118-restrictions or financial requirements; 14
157+1–3A–02. 7
119158
120- (5) OVERSEE THE APPROPRI ATION OF FUNDS AND T HE TRAINING OF 15
121-RECIPIENTS OF FUNDS FROM THE COMMUNITY REINVESTMENT AND REPAIR FUND 16
122-UNDER § 1–3A–04 § 1–3A–03 OF THIS TITLE; 17
159+ (A) THE GENERAL ASSEMBLY FINDS THAT : 8
123160
124- (6) provide recommendations to the Maryland Cannabis Administration on 18
125-regulations related to: 19
161+ (1) THE GOAL OF REGULATI ON AND TAXATION OF C ANNABIS IN THE 9
162+STATE IS TO CREATE A SAFE AND REGULATED I NDUSTRY THAT BENEFIT S THE 10
163+PUBLIC INTEREST ; 11
126164
127- (i) diversity; and 20
165+ (2) THE USE OF INCARCERA TION IN ENFORCING PR OHIBITIONS ON 12
166+THE IMPORTATION , MANUFACTURE, USE, SALE, AND DISTRIBUTION OF CANNABIS 13
167+VARIED WITHIN THE STATE BY JURISDICTION AND RACIAL CLASSIFIC ATION; 14
128168
129- (ii) social equity applications; 21
169+ (3) ANALYSIS OF GEOGRAPH IC AND DEMOGRAPHIC 15
170+CHARACTERISTICS REVE ALED DISPARITIES IN ARRESTS, PROSECUTION , AND 16
171+IMPRISONMENT FOR CAN NABIS USE, WITH A NEGATIVE AND DISPROPORTIONATE 17
172+IMPACT ON SOME COMMU NITIES AND NEIGHBORH OODS WITHIN THE STATE; AND 18
130173
131- [(6)] (7) work with the Maryland Cannabis Administration to implement 22
132-free technical assistance for social equity and minority cannabis business applicants; 23
174+ (4) CONSEQUENCES OF THE DISPROPORTIONATE ENF ORCEMENT OF 19
175+CANNABIS–RELATED OFFENSES HAV E CONTRIBUTED TO THE ECONOMIC, PUBLIC 20
176+HEALTH, AND SOCIAL CO NDITIONS OF SPECIFIC COMMUNITIES AND HAVE HAD 21
177+SIGNIFICANT AND MEAS URABLE EFFECTS ON TH E SOCIAL AND FINANCI AL 22
178+RESOURCES AVAILABLE TO THE CHILDREN , FAMILIES, AND LOCAL 23
179+INFRASTRUCTURE OF TH ESE COMMUNITIES . 24
133180
134- [(7)] (8) produce reports and recommendations on diversity and equity in 24
135-ownership, management, and employment in the legal cannabis economy; and 25
181+ (B) THE GENERAL ASSEMBLY THEREFORE FI NDS THAT THE P UBLIC 25
182+INTEREST IS SERVED B Y: 26
136183
137- [(8)] (9) assist businesses with obtaining financing through the Capital 26
138-Access Program under Title 36, Subtitle 14 of this article. 27
139-
140- [(e) (1) On or before March 1 each year, the Office of Social Equity shall produce 28
141-and make publicly available a report on how the funds in the Community Reinvestment 29
142-and Repair Fund under § 1–322 of this subtitle were allocated during the immediately 30
143-preceding calendar year. 31
144- 4 HOUSE BILL 1364
145-
146-
147- (2) The report shall also be submitted to the General Assembly in 1
148-accordance with § 2–1257 of the State Government Article. 2
149-
150- (3) The Office may request information from political subdivisions and 3
151-entities receiving distributions from the Fund to assist with the completion of the report. 4
152-
153- (f) (1) On or before November 1 every 2 years, beginning in 2024, the Office of 5
154-Social Equity shall solicit public input on the uses of the funds in the Community 6
155-Reinvestment and Repair Fund under § 1–322 of this subtitle. 7
156-
157- (2) On or before December 15 every 2 years, beginning in 2024, the Office 8
158-of Social Equity shall publish a review of the input received under paragraph (1) of this 9
159-subsection on a publicly accessible part of the Office’s website. 10
160-
161- (3) The Office shall include in the review information on how the funds 11
162-received from the Fund were spent during the immediately preceding 2 calendar years.] 12
163-
164-SUBTITLE 3A. COMMUNITY REINVESTMENT AND REPAIR ADVISORY BOARD AND 13
165-FUND. 14
166-
167-1–3A–01. 15
168-
169- (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 16
170-INDICATED. 17
171-
172- (B) “EXECUTIVE DIRECTOR” MEANS THE EXECUTIVE DIRECTOR OF THE 18
173-OFFICE OF SOCIAL EQUITY. 19
174-
175- (C) “FUND” MEANS THE COMMUNITY REINVESTMENT AND REPAIR FUND. 20
176-
177- (D) “OFFICE” MEANS THE OFFICE OF SOCIAL EQUITY. 21
178-
179-1–3A–02. 22
180-
181- (A) THE GENERAL ASSEMBLY FINDS THAT : 23
182-
183- (1) THE GOAL OF REGULATI ON AND TAXATION OF C ANNABIS IN THE 24
184-STATE IS TO CREATE A SAFE AND REGULATED I NDUSTRY THAT BENEFIT S THE 25
185-PUBLIC INTEREST ; 26
186-
187- (2) THE USE OF INCARCERA TION IN ENFORCING PR OHIBITIONS ON 27
188-THE IMPORTATION , MANUFACTURE , USE, SALE, AND DISTRIBUTION OF CANNABIS 28
189-VARIED WITHIN THE STATE BY JURISDICTION AND RACIAL CLASSIFIC ATION; 29
184+ (1) ACKNOWLEDGING AND RE PAIRING THE CAUSES A ND 27
185+CONSEQUENCES OF DISP ARITIES IN ARRESTS A ND IMPRISONMENT IN 28
186+PROSECUTIONS OF CANN ABIS–RELATED OFFENSES AMO NG SPECIFIC POPULATI ONS 29
187+AND GEOGRAPHIC REGIO NS; 30
190188 HOUSE BILL 1364 5
191189
192190
193- (3) ANALYSIS OF GEOGRAPH IC AND DEMOGRAPHIC 1
194-CHARACTERISTICS REVE ALED DISPARITIES IN ARRESTS, PROSECUTION , AND 2
195-IMPRISONMENT FOR CAN NABIS USE, WITH A NEGATIVE AND DISPROPORTIONATE 3
196-IMPACT ON SOME COMMU NITIES AND NEIGHBORH OODS WITHIN THE STATE; AND 4
191+ (2) DEVELOPING , AMONG EXISTING MEMBERS OF COMMUNITIES 1
192+THAT HAVE BEEN DISPR OPORTIONATELY AND NE GATIVELY IMPACTED , THE 2
193+CAPACITY TO ASCERTAI N AND ADDRESS THE SO CIAL AND ECONOMIC 3
194+DETERMINANTS THAT AR E FUNDAMENTAL TO RED UCING THE IMPACT OF 4
195+LONGSTANDING INEQUIT IES AND IMPROVING EC ONOMIC, EDUCATIONAL , AND 5
196+HEALTH OUTCOMES ; AND 6
197197
198- (4) CONSEQUENCES OF THE DISPROPORTIONATE ENFORCEMENT OF 5
199-CANNABIS–RELATED OFFENSES HAV E CONTRIBUTED TO THE ECONOMIC, PUBLIC 6
200-HEALTH, AND SOCIAL CONDITION S OF SPECIFIC COMMUN ITIES AND HAVE HAD 7
201-SIGNIFICANT AND MEAS URABLE EFFECTS ON TH E SOCIAL AND FINANCI AL 8
202-RESOURCES AVAILABLE TO THE CHILDREN , FAMILIES, AND LOCAL 9
203-INFRASTRUCTURE OF TH ESE COMMUNITIES . 10
198+ (3) BEING CONSISTENT WIT H SOCIAL EQUITY PRIN CIPLES AND 7
199+GOVERNANCE BY ALLOCA TING A SIGNIFICANT P ORTION OF TAX REVENU E FROM THE 8
200+ADULT–USE CANNABIS MARKET TO THE COMMUNITY REINVESTMENT AND REPAIR 9
201+FUND FOR DISTRIBUTION TO LOCA L JURISDICTIONS TO B E ADMINISTERED BY TH E 10
202+LOCAL JURISDICTIONS . 11
204203
205- (B) THE GENERAL ASSEMBLY THEREFORE FI NDS THAT THE PUBLIC 11
206-INTEREST IS SERVED B Y: 12
204+1–3A–03. 12
207205
208- (1) ACKNOWLEDGING AND RE PAIRING THE CAUSES A ND 13
209-CONSEQUENCES OF DISP ARITIES IN ARRESTS A ND IMPRISONMENT IN 14
210-PROSECUTIONS O F CANNABIS–RELATED OFFENSES AMO NG SPECIFIC POPULATI ONS 15
211-AND GEOGRAPHIC REGIO NS; 16
206+ (A) THERE IS A COMMUNITY REINVESTMENT AND REPAIR ADVISORY 13
207+BOARD. 14
212208
213- (2) DEVELOPING , AMONG EXISTING MEMBE RS OF COMMUNITIES 17
214-THAT HAVE BEEN DISPR OPORTIONATELY AND NE GATIVELY IMPACTED , THE 18
215-CAPACITY TO ASCERTAI N AND ADDRESS THE SO CIAL AND ECONOMIC 19
216-DETERMINANTS THAT AR E FUNDAMENTAL TO RED UCING THE IMPACT OF 20
217-LONGSTANDING INEQUIT IES AND IMPROVING EC ONOMIC, EDUCATIONAL , AND 21
218-HEALTH OUTCOMES ; AND 22
209+ (B) THE BOARD SHALL: 15
219210
220- (3) BEING CONSISTENT WIT H SOCIAL EQUITY PRIN CIPLES AND 23
221-GOVERNANCE BY ALLOCA TING A SIGNIFICANT P ORTION OF TAX REVENUE FROM THE 24
222-ADULT–USE CANNABIS MARKET TO THE COMMUNITY REINVESTMENT AND REPAIR 25
223-FUND FOR DISTRIBUTION TO LOCAL JURISDICTIO NS TO BE ADMINISTERE D BY THE 26
224-LOCAL JURISDICTIONS . 27
211+ (1) CONSIDER MATTERS SUB MITTED TO THE BOARD BY THE 16
212+GOVERNOR, THE GENERAL ASSEMBLY, OR THE OFFICE; 17
225213
226-1–3A–03. 28
214+ (2) PROVIDE OVERSIGHT AN D RECOMMENDATIONS FO R THE 18
215+EQUITABLE DISTRIBUTI ON AND USE OF THE COMMUNITY REINVESTMENT AND 19
216+REPAIR FUND; 20
227217
228- (A) THERE IS A COMMUNITY REINVESTMENT AND REPAIR ADVISORY 29
229-BOARD. 30
218+ (3) REVIEW AND EVALUATE THE FUND’S EXPENDITURES FOR 21
219+ALIGNMENT WITH THE FUND’S OBJECTIVES; AND 22
230220
231- (B) THE BOARD SHALL: 31
221+ (4) MEET ANNUALLY WITH T HE EXECUTIVE DIRECTOR. 23
232222
233- (1) CONSIDER MATTERS SUB MITTED TO THE BOARD BY THE 32
234-GOVERNOR, THE GENERAL ASSEMBLY, OR THE OFFICE; 33
223+ (C) THE OFFICE SHALL PROVIDE STAFF AND ADMINISTRA TIVE SUPPORT 24
224+FOR THE BOARD. 25
225+
226+ (D) THE BOARD CONSISTS OF THE FOLLOWING MEMBERS , APPOINTED BY 26
227+THE GOVERNOR ON THE RECOM MENDATION OF THE EXECUTIVE DIRECTOR: 27
228+
229+ (1) FIVE MEMBERS WITH EX PERIENCE IN ONE OR M ORE OF THE 28
230+FOLLOWING AREAS : 29
231+
232+ (I) COMMUNITY DEVELOPMEN T; 30
235233 6 HOUSE BILL 1364
236234
237235
238- (2) PROVIDE OVERSIGHT AN D RECOMMENDATIONS FO R THE 1
239-EQUITABLE DISTRIBUTI ON AND USE OF THE COMMUNITY REINVESTMENT AND 2
240-REPAIR FUND; 3
236+ (II) CRIMINAL JUSTICE REF ORM OR REENTRY SERVI CES; 1
241237
242- (3) REVIEW AND EVALUATE THE FUND’S EXPENDITURES FOR 4
243-ALIGNMENT WITH THE FUND’S OBJECTIVES; AND 5
238+ (III) PUBLIC HEALTH , PARTICULARLY IN UNDE RSERVED 2
239+COMMUNITIES ; OR 3
244240
245- (4) MEET ANNUALLY WITH T HE EXECUTIVE DIRECTOR. 6
241+ (IV) BEHAVIORAL HEA LTH, SOCIAL SERVICES , OR 4
242+TRAUMA–INFORMED CARE , PARTICULARLY IN UNDE RSERVED COMMUNITIES ; 5
246243
247- (C) THE OFFICE SHALL PROVIDE STAFF AND ADMINISTRA TIVE SUPPORT 7
248-FOR THE BOARD. 8
244+ (2) TWO MEMBERS FROM COM MUNITY–BASED ORGANIZATIONS THAT 6
245+FOCUS ON VIOLENCE PR EVENTION, YOUTH DEVELOPMENT , OR ECONOMIC 7
246+EMPOWERMENT ; 8
249247
250- (D) THE BOARD CONSISTS OF T HE FOLLOWING MEMBERS , APPOINTED BY 9
251-THE GOVERNOR ON THE RECOM MENDATION OF THE EXECUTIVE DIRECTOR: 10
248+ (3) TWO MEMBERS FROM COM MUNITIES DISPROPORTI ONATELY 9
249+IMPACTED BY THE ENFO RCEMENT OF CANNABIS LAWS, WITH AT LEAST ONE ME MBER 10
250+HAVING DIRECT LIVED EXPERIENCE; 11
252251
253- (1) FIVE MEMBERS WITH EX PERIENCE IN ONE OR M ORE OF THE 11
254-FOLLOWING AREAS : 12
252+ (4) ONE MEMBER WHO IS A PROFESSIONAL IN ACCO UNTING, FINANCE, 12
253+OR AUDITING; 13
255254
256- (I) COMMUNITY DEVELOPMEN T; 13
255+ (5) ONE MEMBER WHO IS AN EXPERT IN NONPROFIT OR PUBLIC 14
256+SECTOR GRANT ADMINIS TRATION AND EVALUATI ON; AND 15
257257
258- (II) CRIMINAL JUSTICE REF ORM OR REENTRY SERVI CES; 14
258+ (6) SIX MEMBERS DEEMED A PPROPRIATE BY THE GOVERNOR TO 16
259+MEET THE GOALS OF TH E BOARD. 17
259260
260- (III) PUBLIC HEALTH , PARTICULARLY IN UNDE RSERVED 15
261-COMMUNITIES ; OR 16
261+ (E) THE BOARD SHALL ELECT A C HAIR FROM AMONG ITS MEMBERS. 18
262262
263- (IV) BEHAVIORAL HEALTH , SOCIAL SERVICES , OR 17
264-TRAUMA–INFORMED CARE , PARTICULARLY IN UNDE RSERVED COMMUNITIES ; 18
263+ (F) (1) THE TERM OF A MEMBER IS 2 YEARS. 19
265264
266- (2) TWO MEMBERS FROM COM MUNITY–BASED ORGANIZATIONS THAT 19
267-FOCUS ON VIOLENCE PREVENTION , YOUTH DEVELOPMENT , OR ECONOMIC 20
268-EMPOWERMENT ; 21
265+ (2) A MEMBER CONTINUES TO SERVE ON THE BOARD UNTIL A 20
266+SUCCESSOR IS APPOINT ED. 21
269267
270- (3) TWO MEMBERS FROM COM MUNITIES DISPROPORTI ONATELY 22
271-IMPACTED BY THE ENFO RCEMENT OF CANNABIS LAWS, WITH AT LEAST ONE ME MBER 23
272-HAVING DIRECT LIVED EXPERIENCE; 24
268+ (3) A MEMBER MUST BE A RES IDENT OF THE STATE. 22
273269
274- (4) ONE MEMBER WHO IS A PROFESSIONAL IN ACCOUNTIN G, FINANCE, 25
275-OR AUDITING; 26
270+ (4) THE MEMBERSHIP OF THE BOARD SHALL REFLECT T HE 23
271+DIVERSITY OF THE STATE TO THE EXTENT P RACTICABLE. 24
276272
277- (5) ONE MEMBER WHO IS AN EXPERT IN NONPROFIT OR PUBLIC 27
278-SECTOR GRANT ADMINIS TRATION AND EVALUATI ON; AND 28
273+ (G) A MEMBER OF THE BOARD: 25
279274
280- (6) SIX MEMBERS DEEMED A PPROPRIATE BY THE GOVERNOR TO 29
281-MEET THE GOALS OF TH E BOARD. 30 HOUSE BILL 1364 7
275+ (1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE BOARD; 26
276+BUT 27
277+ HOUSE BILL 1364 7
282278
283279
280+ (2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 1
281+STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 2
284282
285- (E) THE BOARD SHALL ELECT A CHAIR FRO M AMONG ITS MEMBERS . 1
283+[1–322.] 1–3A–04. 3
286284
287- (F) (1) THE TERM OF A MEMBER IS 2 YEARS. 2
285+ (a) (1) There is a Community Reinvestment and Repair Fund. 4
288286
289- (2) A MEMBER CONTINUES TO SERVE ON THE BOARD UNTIL A 3
290-SUCCESSOR IS APPOINT ED. 4
287+ (2) The purpose of the Fund is to provide funds to community–based 5
288+organizations that serve communities determined by the Office [of Social Equity], in 6
289+consultation with the Office of the Attorney General, to have been the most impacted by 7
290+disproportionate enforcement of the cannabis prohibition before July 1, 2022. 8
291291
292- (3) A MEMBER MUST BE A RES IDENT OF THE STATE. 5
292+ (3) The [Comptroller] EXECUTIVE DIRECTOR shall administer the Fund. 9
293293
294- (4) THE MEMBERSHIP OF THE BOARD SHALL REFLECT THE 6
295-DIVERSITY OF THE STATE TO THE EXTENT P RACTICABLE. 7
294+ (4) (i) The Fund is a special, nonlapsing fund that is not subject to § 10
295+7–302 of the State Finance and Procurement Article. 11
296296
297- (G) A MEMBER OF THE BOARD: 8
297+ (ii) The State Treasurer shall hold the Fund separately, and the 12
298+Comptroller shall account for the Fund. 13
298299
299- (1) MAY NOT RECEIVE COMP ENSATION AS A MEMBER OF THE BOARD; 9
300-BUT 10
300+ (5) The Fund consists of: 14
301301
302- (2) IS ENTITLED TO REIMB URSEMENT FOR EXPENSE S UNDER THE 11
303-STANDARD STATE TRAVEL REGULATIONS, AS PROVIDED IN THE STATE BUDGET . 12
302+ (i) sales and use tax revenue distributed to the Fund under § 15
303+2–1302.2 of the Tax – General Article; 16
304304
305-[1–322.] 1–3A–04. 1–3A–03. 13
305+ (ii) conversion fees paid by businesses under § 36–403 of this article; 17
306+and 18
306307
307- (a) (1) There is a Community Reinvestment and Repair Fund. 14
308+ (iii) any other money from any other source accepted for the benefit 19
309+of the Fund, in accordance with any conditions adopted by the [Comptroller] EXECUTIVE 20
310+DIRECTOR for the acceptance of donations or gifts to the Fund. 21
308311
309- (2) The purpose of the Fund is to provide funds to community–based 15
310-organizations that serve communities determined by the Office [of Social Equity], in 16
311-consultation with the Office of the Attorney General, to have been the most impacted by 17
312-disproportionate enforcement of the cannabis prohibition before July 1, 2022. 18
312+ (6) (i) The Fund may be used only for: 22
313313
314- (3) The [Comptroller] EXECUTIVE DIRECTOR shall administer the Fund. 19
314+ 1. funding community–based initiatives intended to benefit 23
315+low–income communities, INCLUDING: 24
315316
316- (4) (i) The Fund is a special, nonlapsing fund that is not subject to § 20
317-7–302 of the State Finance and Procurement Article. 21
317+ A. BEHAVIORAL HEALTH CR ISIS RESPONSE SERVICES; 25
318318
319- (ii) The State Treasurer shall hold the Fund separately, and the 22
320-Comptroller shall account for the Fund. 23
319+ B. EDUCATION AND AFTER –SCHOOL PROGRAMS ; 26
321320
322- (5) The Fund consists of: 24
323-
324- (i) sales and use tax revenue distributed to the Fund under § 25
325-2–1302.2 of the Tax – General Article; 26
326-
327- (ii) conversion fees paid by businesses under § 36–403 of this article; 27
328-and 28
321+ C. TRUANCY AND ABSENTEE ISM INTERVENTION 27
322+PROGRAMS; 28
329323 8 HOUSE BILL 1364
330324
331325
332- (iii) any other money from any other source accepted for the benefit 1
333-of the Fund, in accordance with any conditions adopted by the [Comptroller] EXECUTIVE 2
334-DIRECTOR for the acceptance of donations or gifts to the Fund. 3
326+ D. HOUSING AND HOMELESS NESS PREVENTION 1
327+INITIATIVES; 2
335328
336- (6) (i) The Fund may be used only for: 4
329+ E. TRANSPORTATION IMPRO VEMENTS IN HIGH –DENSITY 3
330+AREAS THAT HAVE PUBL IC TRANSPORTATION ; 4
337331
338- 1. funding community–based initiatives intended to benefit 5
339-low–income communities, INCLUDING: 6
332+ F. JOB TRAINING AND WOR KFORCE DEVELOPMENT 5
333+PROGRAMS; 6
340334
341- A. BEHAVIORAL HEALTH CR ISIS RESPONSE SERVIC ES; 7
335+ G. COMMUNITY CHILD CARE AND RECREATIONAL 7
336+SERVICES; AND 8
342337
343- B. EDUCATION AND AFTER –SCHOOL PROGRAMS ; 8
338+ H. PROGRAMS THAT BENEFI T INDIVIDUALS AND 9
339+FAMILIES IMPACTED BY INCARCERATION ; 10
344340
345- C. TRUANCY AND ABSENTEE ISM INTERVENTION 9
346-PROGRAMS; 10
341+ 2. funding community–based initiatives that serve 11
342+disproportionately impacted areas, as defined in § 36–101 of this article; and 12
347343
348- D. HOUSING AND HOMELESS NESS PREVENTION 11
349-INITIATIVES; 12
344+ 3. any related administrative expenses THAT DO NOT 13
345+EXCEED 5% OF THE FUNDS RECEIVE D IN THE FISCAL YEAR . 14
350346
351- E. TRANSPORTATION IMPRO VEMENTS IN HIGH –DENSITY 13
352-AREAS THAT HAVE PUBL IC TRANSPORTATION ; 14
347+ (ii) Money may not be expended from the Fund for law enforcement 15
348+agencies or activities. 16
353349
354- F. JOB TRAINING AND WOR KFORCE DEVELOPMENT 15
355-PROGRAMS; 16
350+ (iii) Money expended from the Fund is supplemental to and may not 17
351+supplant funding that otherwise would be appropriated for preexisting local government 18
352+programs. 19
356353
357- G. COMMUNITY CHILD CARE AND RECREATIONAL 17
358-SERVICES; AND 18
354+ (7) (i) The State Treasurer shall invest the money of the Fund in the 20
355+same manner as other State money may be invested. 21
359356
360- H. PROGRAMS THAT BENEFI T INDIVIDUALS AND 19
361-FAMILIES IMPACTED BY I NCARCERATION ; 20
357+ (ii) Any interest earnings of the Fund shall be credited to the 22
358+General Fund of the State. 23
362359
363- 2. funding community–based initiatives that serve 21
364-disproportionately impacted areas, as defined in § 36–101 of this article; and 22
360+ (8) No part of the Fund may revert or be credited to: 24
365361
366- 3. any related administrative expenses INCURRED BY A 23
367-LOCAL GOVERNMENT IN ADMINISTER ING THE FUNDS THAT DO NOT EXCEED 5% 15% 24
368-OF THE FUNDS RECEIVE D IN THE FISCAL YEAR . 25
362+ (i) the General Fund of the State; or 25
369363
370- (ii) Money may not be expended from the Fund for law enforcement 26
371-agencies or activities. 27
364+ (ii) any other special fund of the State. 26
372365
373- (iii) Money expended from the Fund is supplemental to and may not 28
374-supplant funding that otherwise would be appropriated for preexisting local government 29
375-programs. 30
366+ (9) The [Comptroller] EXECUTIVE DIRECTOR shall pay out money from 27
367+the Fund. 28
368+
369+ (10) The Fund is subject to audit by the Office of Legislative Audits as 29
370+provided for in § 2–1220 of the State Government Article. 30
376371 HOUSE BILL 1364 9
377372
378373
379- (7) (i) The State Treasurer shall invest the money of the Fund in the 1
380-same manner as other State money may be invested. 2
374+ (b) (1) Based on the percentage allocable to each county determined by the 1
375+Office [of Social Equity and reported by the Office to the Comptroller on or before July 31 2
376+each year], the [Comptroller] EXECUTIVE DIRECTOR shall distribute funds from the 3
377+Fund to each county in an amount that, for the period from July 1, 2002, to January 1, 4
378+2023, both inclusive, is proportionate to the total number of cannabis possession charges in 5
379+the county compared to the total number of cannabis possession charges in the State. 6
381380
382- (ii) Any interest earnings of the Fund shall be credited to the 3
383-General Fund of the State. 4
381+ (2) FOR ANY DISTRIBUTION OF FUNDS TO A COUNTY UNDER 7
382+PARAGRAPH (1) OF THIS SUBSECTION , THE COUNTY SHALL : 8
384383
385- (8) No part of the Fund may revert or be credited to: 5
384+ (I) TREAT THE FUNDS AS S PECIAL FUNDS RESTRIC TED TO THE 9
385+USES SPECIFIED IN SU BSECTION (A)(6) OF THIS SECTION; AND 10
386386
387- (i) the General Fund of the State; or 6
387+ (II) HOLD THE FUNDS SEPARA TELY FROM OTHER REVE NUE AND 11
388+GENERAL FUNDS . 12
388389
389- (ii) any other special fund of the State. 7
390+ (3) Subject to the limitations under subsection (a)(6) of this section, each 13
391+county shall adopt a law establishing the purpose for which money received from the Fund 14
392+may be used. 15
390393
391- (9) The [Comptroller] EXECUTIVE DIRECTOR shall pay out money from 8
392-the Fund. 9
394+ (C) (1) THE OFFICE SHALL REQUIRE EACH COUNTY TO DEVEL OP A PLAN 16
395+FOR THE DISTRIBUTION OF FUNDS TO COMMUNIT Y–BASED ORGANIZATIONS FOR USE 17
396+IN ACCORDANCE WITH T HIS SECTION. 18
393397
394- (10) The Fund is subject to audit by the Office of Legislative Audits as 10
395-provided for in § 2–1220 of the State Government Article. 11
398+ (2) THE PLAN DEVELOPED BY A COUNTY SHALL BE : 19
396399
397- (b) (1) Based on the percentage allocable to each county determined by the 12
398-Office [of Social Equity and reported by the Office to the Comptroller on or before July 31 13
399-each year], the [Comptroller] EXECUTIVE DIRECTOR shall distribute funds from the 14
400-Fund to each county in an amount that, for the period from July 1, 2002, to January 1, 15
401-2023, both inclusive, is proportionate to the total number of cannabis possession charges in 16
402-the county compared to the total number of cannabis possession charges in the State. 17
400+ (I) ESTABLISHED BEFORE D ISTRIBUTING FUNDS UN DER THIS 20
401+SECTION; 21
403402
404- (2) FOR ANY DISTRIBUTION OF FUNDS TO A COUNTY UNDER 18
405-PARAGRAPH (1) OF THIS SUBSEC TION, THE COUNTY SHALL : 19
403+ (II) DEVELOPED IN CONSULT ATION WITH STAKEHOLD ERS; AND 22
406404
407- (I) TREAT THE FUNDS AS S PECIAL FUNDS RESTRIC TED TO THE 20
408-USES SPECIFIED IN SU BSECTION (A)(6) OF THIS SECTION; AND 21
405+ (III) THE SUBJECT OF A PUB LIC HEARING BEFORE F INALIZING 23
406+THE PLAN. 24
409407
410- (II) HOLD THE FUNDS SEPAR ATELY FROM OTHER REV ENUE AND 22
411-GENERAL FUNDS . 23
408+ (3) THE COUNTY’S ADMINISTRATION AND DISTRIBUTION OF FUND S IN 25
409+ACCORDANCE WITH THIS SECTION IS SOLELY TH E RESPONSIBILITY OF THE COU NTY 26
410+AND MAY NOT BE DELEG ATED TO AN OUTSIDE O RGANIZATION. 27
412411
413- (3) Subject to the limitations under subsection (a)(6) of this section, each 24
414-county shall adopt a law establishing the purpose for which money received from the Fund 25
415-may be used. 26
412+ (4) THE OFFICE SHALL ADOPT RE GULATIONS TO CARRY O UT THIS 28
413+SECTION. 29
416414
417- (C) (1) THE OFFICE SHALL REQUIRE EACH COUNTY TO DEVEL OP A PLAN 27
418-FOR THE DISTRIBUTION OF FUNDS TO COMMUNIT Y–BASED ORGANIZATIONS FOR US E 28
419-IN ACCORDANCE WITH T HIS SECTION. 29
420-
421- (2) THE PLAN DEVELOPED BY A COUNTY SHALL BE : 30
422-
423- (I) ESTABLISHED BEFORE D ISTRIBUTING FUNDS UN DER THIS 31
424-SECTION; 32 10 HOUSE BILL 1364
415+ (D) ON OR BEFORE OCTOBER 1, 2026, AND EACH OCTOBER 1 THEREAFTER , 30
416+EACH COUNTY SHALL SU BMIT A REPORT TO THE OFFICE ON: 31
417+ 10 HOUSE BILL 1364
425418
426419
420+ (1) THE AMOUNT OF FUNDS RECEIVED FROM THE FUND UNDER 1
421+SUBSECTION (B)(1) OF THIS SECTION; 2
427422
428- (II) DEVELOPED IN CONSULT ATION WITH STAKEHOLD ERS; AND 1
423+ (2) THE ORGANIZATIONS TH AT RECEIVED FUNDING FROM THE 3
424+COUNTY UNDER THIS SE CTION; 4
429425
430- (III) THE SUBJECT OF A PUBLIC HEARING BEFOR E FINALIZING 2
431-THE PLAN. 3
426+ (3) THE METHODS USED BY THE COUNTY TO SOLICI T, REVIEW, AND 5
427+SELECT ORGANIZATIONS THAT M AY BE ELIGIBLE FOR F UNDING UNDER THIS 6
428+SECTION; AND 7
432429
433- (3) THE COUNTY’S ADMINISTRATION AND DISTRIBUTION OF FUND S IN 4
434-ACCORDANCE WITH THIS SECTION IS SOLELY TH E RESPONSIBILITY OF THE COUNTY 5
435-AND MAY NOT BE DELEG ATED TO AN OUTSIDE O RGANIZATION. 6
430+ (4) ADMINISTRATIVE EXPEN SES RELATED TO THE C OUNTY’S 8
431+ADMINISTRATION AND D ISTRIBUTION OF THE F UNDS RECEIVED UNDER 9
432+SUBSECTION (B)(1) OF THIS SECTION. 10
436433
437- (4) THE ON OR BEFORE OCTOBER 1, 2025, THE OFFICE SHALL ADOPT 7
438-REGULATIONS TO CARRY OUT THIS SECTION . 8
434+ SECTION 2. AND BE IT FURTHER ENAC TED, That Section(s) 1–323 of Article – 11
435+Alcoholic Beverages and Cannabis of the Annotated Code of Maryland be renumbered to be 12
436+Section(s) 1–322. 13
439437
440- (D) ON OR BEFORE OCTOBER 1, 2026, AND EACH OCTOBER 1 THEREAFTER , 9
441-EACH COUNTY SHALL SU BMIT A REPORT TO THE OFFICE ON: 10
442-
443- (1) THE AMOUNT OF FUNDS RECEIVED FROM THE FUND UNDER 11
444-SUBSECTION (B)(1) OF THIS SECTION; 12
445-
446- (2) THE ORGANIZATIONS TH AT RECEIVED FUNDING FROM THE 13
447-COUNTY UNDER THIS SE CTION; 14
448-
449- (3) THE METHODS USED BY THE COUNTY TO SOLICI T, REVIEW, AND 15
450-SELECT ORGANIZATIONS THAT MAY BE ELIGIBLE FOR FUNDING UNDER TH IS 16
451-SECTION; AND 17
452-
453- (4) ADMINISTRATIVE EXPEN SES RELATED TO THE C OUNTY’S 18
454-ADMINISTRATION AND D ISTRIBUTION OF THE F UNDS RECEIVED UNDER 19
455-SUBSECTION (B)(1) OF THIS SECTION. 20
456-
457- SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 1 –323 of Article – 21
458-Alcoholic Beverages and Cannabis of the Annotated Code of Maryland be renumbered to be 22
459-Section(s) 1–322. 23
460-
461- SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 24
462-October June 1, 2025. 25
463-
464-
438+ SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 14
439+October 1, 2025. 15
465440