Read the full stored bill text
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0732*
SENATE BILL 732
A3 6lr2065
By: Senator M. Washington
Introduced and read first time: February 6, 2026
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Cannabis – Community Reinvestment and Repair Fund – Distribution and Use 2
of Funds for Baltimore City 3
FOR the purpose of requiring the Comptroller to distribute funds allocated to Baltimore 4
City from the Community Reinvestment and Repair Fund to the Baltimore City 5
Comptroller; requiring the Baltimore City Comptroller to administer and distribute 6
the funds to a special fund established by the Baltimore City Comptroller, subject to 7
certain requirements and limitations ; providing that the special fund is subject to 8
audit by the Office of Legislative Audits; and generally relating to the Community 9
Reinvestment and Repair Fund and the distribution and use of funds for Baltimore 10
City. 11
BY repealing and reenacting, without amendments, 12
Article – Alcoholic Beverages and Cannabis 13
Section 1–3A–01 14
Annotated Code of Maryland 15
(2024 Replacement Volume and 2025 Supplement) 16
BY repealing and reenacting, with amendments, 17
Article – Alcoholic Beverages and Cannabis 18
Section 1–3A–03 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
2 SENATE BILL 732
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Alcoholic Beverages and Cannabis 3
1–3A–01. 4
(a) In this subtitle the following words have the meanings indicated. 5
(b) “Executive Director” means the Executive Director of the Office of Social 6
Equity. 7
(c) “Fund” means the Community Reinvestment and Repair Fund. 8
(d) “Office” means the Office of Social Equity. 9
1–3A–03. 10
(a) (1) There is a Community Reinvestment and Repair Fund. 11
(2) The purpose of the Fund is to provide funds to community–based 12
organizations that serve communities determined by the Office, in consultation with the 13
Office of the Attorney General, to have been the most impacted by disproportionate 14
enforcement of the cannabis prohibition before July 1, 2022. 15
(3) The Comptroller shall administer the Fund. 16
(4) (i) The Fund is a special, nonlapsing fund that is not subject to § 17
7–302 of the State Finance and Procurement Article. 18
(ii) The State Treasurer shall hold the Fund separately, and the 19
Comptroller shall account for the Fund. 20
(5) The Fund consists of: 21
(i) sales and use tax revenue distributed to the Fund under § 22
2–1302.2 of the Tax – General Article; 23
(ii) conversion fees paid by businesses under § 36–403 of this article; 24
and 25
(iii) any other money from any other source accepted for the benefit 26
of the Fund, in accordance with any conditions adopted by the Comptroller for the 27
acceptance of donations or gifts to the Fund. 28
(6) (i) The Fund may be used only for: 29
SENATE BILL 732 3
1. funding community–based initiatives intended to benefit 1
low–income communities, including: 2
A. behavioral health crisis response services; 3
B. education and after–school programs; 4
C. truancy and absenteeism intervention programs; 5
D. housing and homelessness prevention initiatives; 6
E. transportation improvements in high –density areas that 7
have public transportation; 8
F. job training and workforce development programs; 9
G. community child care and recreational services; and 10
H. programs that be nefit individuals and families impacted 11
by incarceration; 12
2. funding community –based initiatives that serve 13
disproportionately impacted areas, as defined in § 36–101 of this article; and 14
3. any related administrative expenses incurred by a local 15
government in administering the funds that do not exceed 15% of the funds received in the 16
fiscal year. 17
(ii) Money may not be expended from the Fund for law enforcement 18
agencies or activities. 19
(iii) Money expended from the Fund is supplemental to and may not 20
supplant funding that otherwise would be appropriated for preexisting local government 21
programs. 22
(7) (i) The State Treasurer shall invest the money of the Fund in the 23
same manner as other State money may be invested. 24
(ii) Any interest earnings of the Fund shall be credited to the 25
General Fund of the State. 26
(8) No part of the Fund may revert or be credited to: 27
(i) the General Fund of the State; or 28
(ii) any other special fund of the State. 29
4 SENATE BILL 732
(9) The Comptroller shall pay out money from the Fund. 1
(10) The Fund is subject to audit by the Office of Legislative Audits as 2
provided for in § 2–1220 of the State Government Article. 3
(b) (1) (I) [Based] EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF 4
THIS PARAGRAPH, BASED on the percentage allocable to each county determined by the 5
Office, the Comptroller shall distribute funds from the Fund to each county in an amount 6
that, for the period from July 1, 2002, to January 1, 2023, both inclusive, is proportionate 7
to the total number of canna bis possession charges in the county compared to the total 8
number of cannabis possession charges in the State. 9
(II) THE COMPTROLLER SHALL DISTRIBUTE FUNDS FROM THE 10
FUND ALLOCABLE TO BALTIMORE CITY UNDER SUBPARAGRAPH (I) OF THIS 11
PARAGRAPH TO THE BALTIMORE CITY COMPTROLLER, WHO SHALL ADMINISTER 12
AND DISTRIBUTE THE FUNDS IN ACCORDANCE WITH § 1–3A–04 OF THIS SUBTITLE. 13
(2) For any distribution of funds [to a county] under paragraph (1) of this 14
subsection[,]: 15
(I) the county shall hold the funds separately from other revenue 16
and general funds; AND 17
(II) THE BALTIMORE CITY COMPTROLLER SHALL DIS TRIBUTE 18
THE FUNDS TO A SPECIAL FUND ESTABLI SHED BY THE BALTIMORE CITY 19
COMPTROLLER UNDER § 1–3A–04 OF THIS SUBTITLE. 20
(3) [Subject] EXCEPT FOR BALTIMORE CITY AND SUBJECT to the 21
limitations under subsection (a)(6) of this section, each county shall adopt a law 22
establishing the purpose for which money received from the Fund may be used. 23
(c) (1) The Office shall require each county, OTHER THAN BALTIMORE CITY, 24
AND THE BALTIMORE CITY COMPTROLLER to develop a plan for the distribution of 25
funds to community–based organizations for use in accordance with this section. 26
(2) The plan developed by a county AND THE BALTIMORE CITY 27
COMPTROLLER shall be: 28
(i) established before distributing funds under this section; 29
(ii) developed in consultation with stakeholders; and 30
(iii) the subject of a public hearing before finalizing the plan. 31
SENATE BILL 732 5
(3) On or before October 1, 2025, the Office shall adopt regulations to carry 1
out this section. 2
(d) On or before October 1, 2026, and each October 1 thereafter, each county , 3
OTHER THAN BALTIMORE CITY, AND THE BALTIMORE CITY COMPTROLLER shall 4
submit a report to the Office on: 5
(1) the amount of funds received from the Fund under subsection (b)(1) of 6
this section; 7
(2) the organizations that received funding from the county OR THE 8
BALTIMORE CITY COMPTROLLER under this section; 9
(3) the methods used by the count y OR THE BALTIMORE CITY 10
COMPTROLLER to solicit, review, and select organizations that may be eligible for funding 11
under this section; and 12
(4) administrative expenses related to the county’s OR THE BALTIMORE 13
CITY COMPTROLLER’S administration and distribu tion of the funds received under 14
subsection (b)(1) of this section. 15
1–3A–04. 16
(A) IN ADDITION TO THE RE QUIREMENTS UNDER § 1–3A–03 OF THIS 17
SUBTITLE, THE BALTIMORE CITY COMPTROLLER SHALL: 18
(1) ESTABLISH A SPECIAL ACCOUNT TO BE USED ONLY FOR HOLDING 19
FUNDS ALLOCATED FROM THE FUND; 20
(2) DEPOSIT EACH QUARTERLY ALLOCATION FROM THE FUND TO THE 21
SPECIAL ACCOUNT ESTABLISHED UNDER ITEM (1) OF THIS SUBSECTION; AND 22
(3) DISTRIBUTE THE ALLOCATION OF FUNDS FROM THE FUND TO BE 23
USED ONLY IN ACCORDANCE WITH § 1–3A–03(A)(6) OF THIS SUBTITLE. 24
(B) THE SPECIAL ACCOUNT E STABLISHED UNDER SUBSECTION (A)(1) OF 25
THIS SECTION IS SUBJ ECT TO AUDIT BY THE OFFICE OF LEGISLATIVE AUDITS AS 26
PROVIDED FOR IN § 2–1220 OF THE STATE GOVERNMENT ARTICLE. 27
SECTION 2. AND BE IT FURTHE R ENACTED, That this Act shall take effect 28
October 1, 2026. 29