Md. Code Ann., Alco. Bev. & Cannabis § 1-322
Redline — January 1, 2025 → current.View current text →
Current — January 1, 2026
As of January 1, 2025
(a) (1) There is a Community Reinvestment and Repair Fund.
(2) The purpose of the Fund is to provide funds to community–based organizations that serve communities determined by the Office of Social Equity, in consultation with the Office of the Attorney General, to have been the most impacted by disproportionate enforcement of the cannabis prohibition before July 1, 2022.
(3) The Comptroller shall administer the Fund.
(4) (i) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article.
(ii) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.
(5) The Fund consists of:
(i) sales and use tax revenue distributed to the Fund under § 2–1302.2 of the Tax – General Article;
(ii) conversion fees paid by businesses under § 36–403 of this article; and
(iii) any other money from any other source accepted for the benefit of the Fund, in accordance with any conditions adopted by the Comptroller for the acceptance of donations or gifts to the Fund.
(6) (i) The Fund may be used only for:
1. funding community–based initiatives intended to benefit low–income communities;
2. funding community–based initiatives that serve disproportionately impacted areas, as defined in § 36–101 of this article; and
3. any related administrative expenses.
(ii) Money may not be expended from the Fund for law enforcement agencies or activities.
(iii) Money expended from the Fund is supplemental to and may not supplant funding that otherwise would be appropriated for preexisting local government programs.
(7) (i) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.
(ii) Any interest earnings of the Fund shall be credited to the General Fund of the State.
(8) No part of the Fund may revert or be credited to:
(i) the General Fund of the State; or
(ii) any other special fund of the State.
(9) The Comptroller shall pay out money from the Fund.
(10) The Fund is subject to audit by the Office of Legislative Audits as provided for in § 2–1220 of the State Government Article.
(b) (1) Based on the percentage allocable to each county determined by the Office of Social Equity and reported by the Office to the Comptroller on or before July 31 each year, the Comptroller shall distribute funds from the Fund to each county in an amount that, for the period from July 1, 2002, to January 1, 2023, both inclusive, is proportionate to the total number of cannabis possession charges in the county compared to the total number of cannabis possession charges in the State.
(2) Subject to the limitations under subsection (a)(6) of this section, each county shall adopt a law establishing the purpose for which money received from the Fund may be used.
(a) (1) In this section the following words have the meanings indicated.
(2) “Administration” has the meaning stated in § 36–101 of this article.
(3) “Cannabis licensee” has the meaning stated in § 36–101 of this article.
(4) “Grant Program” means the Social Equity Partnership Grant Program.
(5) “Office” means the Office of Social Equity.
(6) (i) “Qualifying partnership” means a meaningful partnership between an operational cannabis licensee and a social equity licensee that:
1. supports or advises the social equity licensee; and
2. is authorized by the Administration.
(ii) “Qualifying partnership” includes a partnership through which the operational cannabis licensee provides any of the following to a social equity licensee:
1. training;
2. mentorship; or
3. shared commercial space or equipment.
(7) “Social equity licensee” has the meaning stated in § 36–101 of this article.
(b) (1) There is a Social Equity Partnership Grant Program in the Office.
(2) The purpose of the Grant Program is to promote qualifying partnerships between operational cannabis licensees and social equity licensees.
(c) (1) The Office shall implement and administer the Grant Program, including by clearly defining the parameters of a qualifying partnership.
(2) Subject to paragraph (3) of this subsection, the Office has discretion to approve, deny, or revoke qualifying partnerships.
(3) (i) The Office may approve qualifying partnerships where a cost or other fee is imposed by an operational cannabis licensee on a social equity licensee if the cost or other fee is substantially reduced from the market value.
(ii) Costs or other fees under subparagraph (i) of this paragraph may include charges for the rent of facilities or equipment.
(d) (1) The Office shall award grants to operational cannabis licensees that have qualifying partnerships with a social equity licensee.
(2) Grant amounts shall be based on the nature of the qualifying partnership between the social equity licensee and the operational cannabis licensee.
(3) If an operational cannabis licensee has a license that was converted by the Administration under § 36–401(b)(1)(ii) of this article, the total amount of grants issued by the Office under this section to the licensee may not exceed:
(i) the cost of the license conversion fee that was paid by the licensee; or
(ii) $250,000 per year per qualifying partnership.
(e) The Office may require a grant recipient that fails to fulfill the requirements of the grant to return all or part of the grant to the Grant Program.
(f) For fiscal year 2025 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation of $5,000,000 for the Grant Program, utilizing the Cannabis Regulation and Enforcement Fund established under § 36–206 of this article.
(g) The Office shall adopt regulations to:
(1) implement the provisions of this section;
(2) administer the Grant Program;
(3) establish eligibility and grant application requirements;
(4) establish a process for reviewing grant applications and awarding grants to operational cannabis licensees; and
(5) specify criteria and procedures to monitor eligibility for the grants authorized under this section.
Official source: Maryland General Assembly. Reproduced from public-domain Maryland statutes; confirm against the official source for the current text. Not legal advice.