St. Mary’s Commissioners Consider How to Distribute More Than $1.5 Million in Cannabis Reinvestment Funding
The Commissioners of St. Mary’s County are expected to make a final decision July 21 on an ordinance establishing how more than $1.5 million in state cannabis reinvestment funding may be distributed throughout the county.
The proposed ordinance would create the St. Mary’s County Community Reinvestment and Repair Fund and establish eligibility requirements and a process for awarding money received through Maryland’s statewide Community Reinvestment and Repair Fund, commonly known as the CRRF.
The commissioners will hold a public hearing on the proposed ordinance Tuesday, July 14, 2026, at 6:30 p.m. in Leonardtown. Written comments may also be emailed to [email protected].
Through May 31, 2026, St. Mary’s County had received $1,542,136.62 in CRRF funding. Nearly two-thirds of that amount, $989,603.19., came from fees paid by medical cannabis businesses converting to adult-use licenses.
Based on the funding received so far, Deputy County Attorney John Houser estimates the county will also receive approximately $240,000 annually in cannabis sales tax revenue through 2033.
The statewide fund was created as part of Maryland’s Cannabis Reform Act of 2023, when recreational cannabis became legal in the state. It is supported by conversion fees paid by medical cannabis businesses and a portion of the state’s adult-use cannabis sales tax revenue.
State law allows the funding to be used for two general purposes: supporting low-income communities through initiatives related to health, education, transportation, employment or homelessness services, and investing in areas designated by the state as disproportionately impacted by past cannabis enforcement.
According to a January 2026 memorandum prepared by Houser, disproportionately impacted areas are communities where cannabis possession charges were recorded at more than 150% of the statewide 10-year average.
State data identifies only the 20653 ZIP code, which includes Lexington Park, as a disproportionately impacted area in St. Mary’s County because of its history of cannabis possession charges.
However, the proposed county ordinance also creates a separate eligibility category for low-income communities. As written, projects could qualify for funding outside Lexington Park if they serve neighborhoods meeting the ordinance’s income requirements.
The draft ordinance defines a low-income community as a neighborhood or area where the median household income is 70% or less of the Area Median Income.
That calculation could make more communities eligible for funding than the state-designated disproportionately impacted area alone.
While Lexington Park contains the county’s highest concentration of poverty, portions of the 7th District also fall below the ordinance’s proposed income threshold, according to United States Census data.
Additional state guidance released shortly before the public hearing may require the county to revise that definition.
On June 30, the Maryland Office of Social Equity issued emergency guidelines that became effective immediately and further defined how CRRF funding may be used.
According to a memorandum prepared by Houser for the July 14 public hearing, the state guidelines define a low-income community as an area located within a qualified census tract or an area where at least 51% of households earn no more than 80% of the Area Median Income, based on federal housing data.
The memorandum also identifies a difference between the state’s definition of a community-based organization and the definition currently included in the county’s draft ordinance.
Houser wrote that the ordinance will need to be amended after the public hearing to comply with the new state guidance.
Under the draft ordinance, a community-based initiative is defined as a service or program intended to improve the economic, educational or health outcomes of residents through programs or community capacity-building without a profit motive.
The county fund would be maintained separately from other county revenue and general funds. It would also be continuing and non-lapsing, meaning money remaining at the end of a fiscal year would remain available rather than returning to the county’s general fund.
The fund could receive money from several sources, including distributions from the statewide CRRF, money appropriated by the commissioners, donations or gifts accepted by the county, and repayments or returned grant money.
The County Attorney’s Office, or another designated county representative, would develop the grant application and review process before making funding recommendations to the commissioners for final approval.
The process would be repeated annually. County officials have also discussed modifying the county’s existing nonprofit grant application process for use with the cannabis reinvestment funding.
Commissioners have indicated they prefer using much of the initial funding for one-time, shovel-ready projects because future annual distributions are expected to be significantly lower than the county’s initial allocation.
If the ordinance is approved July 21, grant applications are scheduled to open Aug. 3.
Funding recommendations are expected to be presented by Oct. 6. The county must then submit its first report to the Maryland Office of Social Equity by the end of October explaining how the funding was awarded and spent.
The ordinance is required under Maryland law before St. Mary’s County can establish its own process for distributing the money.
The General Assembly created the fund with the stated goal of improving economic, educational and health outcomes in communities that have experienced longstanding inequities and disproportionate effects from cannabis enforcement.
