Simple Explanation of HOUSE BILL 1364

This bill makes changes to how the Community Reinvestment and Repair Fund is managed in Maryland. It focuses on supporting communities that were negatively affected by past cannabis laws.

Key Points of the Bill

• Who Runs the Fund?
  Instead of the Comptroller (the state's chief financial officer), the Office of Social Equity will now be in charge of managing the fund. This office is part of the Maryland Cannabis Administration and focuses on helping communities harmed by the war on drugs.
• What is the Fund for?
  The fund is meant to give money to community groups that serve neighborhoods that were most negatively impacted by strict cannabis laws before July 1, 2022.
• Uses of the Fund:
  • Support programs like mental health and behavioral health crisis services.
  • Provide education and after-school programs.
  • Help with truancy and absenteeism in schools.
  • Support housing and homelessness prevention efforts.
  • Improve transportation in areas with public transit.
  • Offer job training and workforce development.
  • Support community child care and recreational activities.
  • Help individuals and families affected by incarceration.

  Importantly, the fund cannot be used for law enforcement.

• Limit on Administrative Costs: Counties can only use up to 5% (previously 15%) of the funds they receive to cover their administrative expenses managing the fund.
• County Responsibilities:
  Each county must:
  • Manage the funds carefully and separately from other money.
  • Create a clear plan on how to distribute the funds to local community organizations.
  • Develop this plan with input from community stakeholders and hold public hearings.
  • Submit an annual report to the Office of Social Equity detailing how the funds were spent, which organizations got money, and administrative costs.
  • Not delegate this responsibility to any outside groups; the county is fully responsible.
• Community Reinvestment and Repair Advisory Board:
  A new advisory board will be created to oversee and provide recommendations on the fund. It includes experts from community development, criminal justice reform, public health, social services, finance, nonprofit management, and members from communities impacted by cannabis laws.
• Why This Matters:
  This bill recognizes that some communities were unfairly targeted by cannabis laws in the past, leading to harm economically and socially. The fund and oversight seek to repair that harm by investing directly in these communities.
• Effective Date:
  The bill will take effect on June 1, 2025.

Summary

In simple terms, this law changes who manages money aimed at helping communities hurt by cannabis prohibition. It puts the Office of Social Equity in charge, sets rules on how counties must distribute and report on the funds, creates a new advisory board for guidance, and limits how much can be spent on administration. The goal is to fairly support educational, social, housing, job-related, and other positive community programs, making sure the money truly benefits those who were most impacted by past drug policies.