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EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0307*
HOUSE BILL 307
A3, P1 6lr1863
CF SB 217
By: Delegates Qi and Hill
Introduced and read first time: January 15, 2026
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Community Reinvestment and Repair Fund – Alterations 2
FOR the purpose of altering the purpose of the Community Reinvestment and Repair Fund; 3
requiring the Comptroller to administer the Fund at the direction of the Office of 4
Social Equity; altering requirements for a certain county plan for the distribution of 5
funds from the Fund; requiring a county to consult with the Office to make any 6
adjustments to the county plan; altering the requirements for a certain report on the 7
Fund; requiring the Comptroller, in consultation with the Office, to ensure 8
compliance with provisions of law governing the Fund; altering certain uses of the 9
money distributed from the Fund by a county; and generally relating to the 10
Community Reinvestment and Repair Fund. 11
BY repealing and reenacting, with amendments, 12
Article – Alcoholic Beverages and Cannabis 13
Section 1–3A–01 and 1–3A–03 14
Annotated Code of Maryland 15
(2024 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – Alcoholic Beverages and Cannabis 18
Section 1–3A–02(b) 19
Annotated Code of Maryland 20
(2024 Replacement Volume and 2025 Supplement) 21
BY adding to 22
Article – Alcoholic Beverages and Cannabis 23
Section 1–3A–04 24
Annotated Code of Maryland 25
(2024 Replacement Volume and 2025 Supplement) 26
BY repealing and reenacting, with amendments, 27
2 HOUSE BILL 307
Article – State Government 1
Section 9–4108 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2025 Supplement) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMB LY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – Alcoholic Beverages and Cannabis 7
1–3A–01. 8
(a) In this subtitle the following words have the meanings indicated. 9
(b) “Executive Director” means the Executive Director of the Office of Social 10
Equity. 11
(c) “Fund” means the Community Reinvestment and Repair Fund. 12
(d) “Office” means the Office of Social Equity ESTABLISHED UNDER § 9–4108 13
OF THE STATE GOVERNMENT ARTICLE. 14
1–3A–02. 15
(b) The General Assembly therefore finds that the public interest is served by: 16
(1) acknowledging and repairing the causes and consequences of 17
disparities in arrests and imprisonment in prosecutions of cannabis –related offenses 18
among specific populations and geographic regions; 19
(2) developing, among exi sting members of communities that have been 20
disproportionately and negatively impacted, the capacity to ascertain and address the 21
social and economic determinants that are fundamental to reducing the impact of 22
longstanding inequities and improving economic, educational, and health outcomes; and 23
(3) being consistent with social equity principles and governance by 24
allocating a significant portion of tax revenue from the adult –use cannabis market to the 25
Community Reinvestment and Repair Fund for distributio n to local jurisdictions to be 26
administered by the local jurisdictions. 27
1–3A–03. 28
(a) (1) There is a Community Reinvestment and Repair Fund. 29
(2) The purpose of the Fund is: 30
HOUSE BILL 307 3
(I) to provide funds to community –based organizations that serve 1
communities determined by the Office, in consultation with the Office of the Attorney 2
General, to have been the most impacted by disproportionate enforcement of the cannabis 3
prohibition before July 1, 2022; AND 4
(II) TO SERVE THE PUBLIC INTEREST STATED UNDER § 5
1–3A–02(B) OF THIS SUBTITLE. 6
(3) The Comptroller shall administer the Fund AT THE DIRECTION OF 7
THE OFFICE. 8
(4) (i) The Fund is a special, nonlapsing fund that is not subject to § 9
7–302 of the State Finance and Procurement Article. 10
(ii) The State Treasurer shall hold the Fund separately, and the 11
Comptroller shall account for the Fund. 12
(5) The Fund consists of: 13
(i) sales and use tax revenue distributed to the Fund under § 14
2–1302.2 of the Tax – General Article; 15
(ii) conversion fees paid by businesses under § 36–403 of this article; 16
and 17
(iii) any other money from any other source accepted for the benefit 18
of the Fund, in accordance with any conditions adopted by the Comptroller for the 19
acceptance of donations or gifts to the Fund. 20
(6) (i) The Fund [may] SHALL be used only [for: 21
1. funding community–based initiatives intended to benefit 22
low–income communities, including: 23
A. behavioral health crisis response services; 24
B. education and after–school programs; 25
C. truancy and absenteeism intervention programs; 26
D. housing and homelessness prevention initiatives; 27
E. transportation improvements in high –density areas that 28
have public transportation; 29
F. job training and workforce development programs; 30
4 HOUSE BILL 307
G. community child care and recreational services; and 1
H. programs that benefit individuals and families impacted 2
by incarceration; 3
2. funding community –based initiatives that serve 4
disproportionately impacted areas, as defined in § 36–101 of this article; and 5
3. any related administrative expenses incurred by a local 6
government in administering the funds that do not exceed 15% of the funds received in the 7
fiscal year. 8
(ii) Money may not be expended from the Fund for law enforcement 9
agencies or activities. 10
(iii) Money expended from the Fund is supplemental to and may not 11
supplant funding that otherwise would be appropriated for preexisting local government 12
programs] AS PROVIDED UNDER § 1–3A–04 OF THIS SUBTITLE. 13
(7) (i) The State Treasurer shall invest the money of the Fund in the 14
same manner as other State money may be invested. 15
(ii) Any interest earnings of the Fund shall be credited to the 16
General Fund of the State. 17
(8) No part of the Fund may revert or be credited to: 18
(i) the General Fund of the State; or 19
(ii) any other special fund of the State. 20
(9) The Comptroller shall pay out money from the Fund. 21
(10) The Fund is subject to audit by the Office of Legislative Audits as 22
provided for in § 2–1220 of the State Government Article. 23
(b) (1) Based on the percentage allocable to each county determined by the 24
Office, the Comptroller shall distribute funds from the Fund to each county in an amount 25
that, for the period from July 1, 2002, to January 1, 2023, both inclusive, is proportionate 26
to the total number of cannabis possession charges in the county compared to the total 27
number of cannabis possession charges in the State. 28
(2) For any distribution of funds to a county under paragraph (1) of this 29
subsection, the county shall hold the funds separately from other revenue and general 30
funds. 31
HOUSE BILL 307 5
(3) Subject to the limitations under [subsection (a)(6) of this section ] § 1
1–3A–04 OF THIS SUBTITLE, each county shall adopt a law establishing the purpose for 2
which money received from the Fund may be used. 3
(c) (1) IN THIS SUBSECTION, “STAKEHOLDER” MEANS: 4
(I) AN INDIVIDUAL WHO RE SIDES IN OR REPRESEN TS A 5
COMMUNITY IDENTIFIED BY THE OFFICE AS HAVING BEEN DISPROPORTIONATELY 6
IMPACTED BY CANNABIS ENFORCEMENT; 7
(II) A COMMUNITY–BASED ORGANIZATION T HAT SERVES OR IS 8
LED BY RESIDENTS OF A COMMUNITY IDENTIFIED BY THE OFFICE AS HAVING BEEN 9
DISPROPORTIONATELY IMPACTED BY CANNABIS ENFORCEMENT; OR 10
(III) ANY OTHER INDIVIDUAL OR COMMUNITY –BASED 11
ORGANIZATION THAT HA S A DEMONST RATED EXPERIENCE OR EXPERTISE IN 12
ADDRESSING THE SOCIA L, ECONOMIC, OR HEALTH HARMS CAUS ED BY CANNABIS 13
CRIMINALIZATION. 14
(2) The Office shall require each county to develop a plan for the 15
distribution of funds [to community–based organizations for use ] in accordance with this 16
section. 17
[(2)] (3) The plan developed by a county shall be: 18
(i) established before distributing funds under this section; 19
(ii) developed in consultation with stakeholders; [and] 20
(iii) the subject of a public hearing before finalizing the plan; AND 21
(IV) MADE PUBLICLY AVAILABLE. 22
(4) A COUNTY PLAN UNDER THIS SUBSECTION SHALL: 23
(I) IDENTIFY THE GEOGRAP HIC AREAS AND POPULA TIONS 24
WITHIN THE COUNTY DE TERMINED TO HAVE BEE N MOST IMPACTED BY T HE 25
DISPROPORTIONATE ENFORCEMENT OF CANNABIS LAWS; AND 26
(II) DESCRIBE HOW THE PRO POSED USES OF FUNDS ARE 27
CONSISTENT WITH THE FUND USES ESTABLISHED UNDER § 1–3A–04 OF THIS 28
SUBTITLE. 29
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(5) EACH COUNTY SHALL CONSULT WITH THE OFFICE TO MAKE ANY 1
ADJUSTMENTS TO A PLAN DEVELOPED UNDER THIS SECTION. 2
[(3)] (6) On or before October 1, 2025, the Office shall adopt regulations 3
to carry out this section. 4
(d) On or before October 1, 2026, and each October 1 thereafter, each county shall 5
submit a report to the Office [on] THAT INCLUDES: 6
(1) the amount of funds received from the Fund under subsection (b)(1) of 7
this section; 8
(2) the [organizations] ENTITIES that received funding from the county 9
under this section; 10
(3) the methods used by the county to solicit, review, and select 11
[organizations] ENTITIES that may be eligible for funding under this section; [and] 12
(4) THE administrative expenses related to the county’s administration 13
and distribution of the funds received under subsection (b)(1) of this section; AND 14
(5) DATA ON THE POPULATIONS SERVED AND SERVICES PROVIDED. 15
(E) THE COMPTROLLER, IN CONSULTATION WITH THE OFFICE, SHALL 16
ENSURE COMPLIANCE WITH THIS SUBTITLE. 17
1–3A–04. 18
(A) MONEY DISTRIBUTED FRO M THE FUND UNDER § 1–3A–03(B) OF THIS 19
SUBTITLE SHALL BE USED BY A COUNTY TO FUND: 20
(1) COMMUNITY–BASED INITIATIVES IN TENDED TO BENEFIT 21
LOW–INCOME COMMUNITIES I N GEOGRAPHIC AREAS M OST IMPACTED BY THE 22
DISPROPORTIONATE ENFORCEMENT OF CANNABIS LAWS; AND 23
(2) PROGRAMS OR PROJECTS THAT ADVANCE THE STATED PURPOSES 24
OF THE FUND UNDER § 1–3A–03(A)(2) OF THIS SUBTITLE, INCLUDING: 25
(I) BEHAVIORAL HEALTH CRISIS RESPONSE SERVICES; 26
(II) EDUCATION AND AFTER–SCHOOL PROGRAMS; 27
(III) TRUANCY AND ABSENTEEISM INTERVENTION PROGRAMS; 28
HOUSE BILL 307 7
(IV) HOUSING AND HOMELESSNESS PREVENTION INITIATIVES; 1
(V) TRANSPORTATION IMPRO VEMENTS IN HIGH –DENSITY 2
AREAS THAT HAVE PUBLIC TRANSPORTATION; 3
(VI) JOB TRAINING AND WOR KFORCE DEVELOPMENT 4
PROGRAMS; 5
(VII) COMMUNITY CHILD CARE AND RECREATIONAL SER VICES; 6
AND 7
(VIII) PROGRAMS THAT BENEFI T INDIVID UALS AND FAMILIES 8
IMPACTED BY INCARCERATION; 9
(3) COMMUNITY–BASED INITIATIVES TH AT SERVE 10
DISPROPORTIONATELY I MPACTED AREAS , AS DEFINED IN § 36–101 OF THIS 11
ARTICLE; AND 12
(4) ANY RELATED ADMINISTRATIVE EXPENSES INCURRED BY A LOCAL 13
GOVERNMENT IN ADMINISTERING THE FU NDS THAT DO NOT EXCE ED 15% OF THE 14
FUNDS RECEIVED IN THE FISCAL YEAR. 15
(B) MONEY MAY NOT BE EXPE NDED FROM THE FUND FOR LAW 16
ENFORCEMENT AGENCIES OR ACTIVITIES. 17
(C) MONEY EXPENDED FROM THE FUND SHALL BE SUPPLEMENTAL TO AND 18
MAY NOT SUPPL ANT FUNDING THAT OTH ERWISE WOULD BE APPR OPRIATED FOR 19
PREEXISTING LOCAL GOVERNMENT PROGRAMS. 20
Article – State Government 21
9–4108. 22
(a) There is an Office of Social Equity within the Department. 23
(b) (1) The Governor shall appoint an Executive Director of the Office of Social 24
Equity. 25
(2) The Executive Director of the Office of Social Equity shall have at least 26
5 years of experience in civil rights advocacy, civil rights litigation, or another area of social 27
justice. 28
(c) The Office of Social Equity may employ staff and retain contractors as may be 29
required to carry out the functions of the Office. 30
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(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 hav e previously been disproportionately 3
impacted by the war on drugs in order to positively impact those communities; 4
(2) [With the assistance of the Comptroller, oversee ] DIRECT THE 5
ADMINISTRATION OF the Community Reinvestment and Repair Fund under § 1–3A–03 of 6
the Alcoholic Beverages and Cannabis Article; 7
(3) consult with and assist the Department of Commerce in the 8
administration of the Cannabis Business Assistance Fund under § 5–1901 of the Economic 9
Development Article; 10
(4) identify and oppose regulations that unnecessarily burden or 11
undermine the legislative intent of the Office, including regulations that impose undue 12
restrictions or financial requirements; 13
(5) oversee the appropriation of funds and the training of recipients of 14
funds from the Community Reinvestment and Repair Fund under § 1 –3A–03 of the 15
Alcoholic Beverages and Cannabis Article; 16
(6) provide recommendations to the Maryland Cannabis Administration on 17
regulations related to: 18
(i) diversity; and 19
(ii) social equity applications; 20
(7) work with the Maryland Cannabis Administration to implement free 21
technical assistance for social equity and minority cannabis business applicants; 22
(8) produce reports and recommendations on diversity and equity in 23
ownership, management, and employment in the legal cannabis economy; and 24
(9) assist businesses with obtaining financing through the Capital Access 25
Program under Title 36, Subtitle 14 of the Alcoholic Beverages and Cannabis Article. 26
SECTION 2. AND BE IT FURTHER ENACTED, Tha t this Act shall take effect 27
October 1, 2026. 28