Maryland’s Cannabis Reform Act, HB556/SB516, became law in 2023, and the legal adult-use marketplace began July 1 that year. The Maryland Cannabis Administration records a March 14, 2024 lottery for 174 social equity business licenses. That historical award count should not be read as a count of operating businesses. Implementation continued in 2026: MCA’s February guidance says regulations effective March 2 extended the conditional-license period from 18 to 24 months. The law, the licensing award, and permission to operate are separate steps. [1][2][3]
The Community Reinvestment and Repair Fund receives 35 percent of adult-use cannabis sales-tax revenue through fiscal year 2033, according to the state’s October 9, 2026 guidance. The Comptroller distributes funding to all 24 local jurisdictions using their shares of cannabis possession charges from July 1, 2002, through January 1, 2023. Counties and Baltimore City choose projects within statutory limits; the Office of Social Equity oversees plans and reporting. Permitted uses include housing, education, job training, and programs supporting families affected by incarceration. The money cannot fund law enforcement or replace existing funding. [4]
The first local distribution plans and annual reports were due October 1, 2026. State guidance requires community consultation and a public hearing before a plan is finalized; reports must identify recipients, award amounts, services, populations served, and administrative expenses. Community organizations apply locally, because the state Office of Social Equity does not select or fund individual projects. The governing COMAR chapter was adopted as an emergency provision effective July 20, 2026. The state says that emergency period runs through January 16, 2027, with permanent regulations to follow and an opportunity for public comment. [4][5]
Our position.
Local governments should publish reinvestment plans, award lists, and how community input affected spending. Maryland should also track whether social equity licensees reach operation, with residents affected by enforcement involved in setting priorities.
Questions and next steps.
Will your county council or Baltimore City representatives publish the October 2026 distribution plan and annual report, explain any missing submission, and hold an accessible public discussion of the next funding priorities?
Find your lawmakersThis is a dated policy explainer for public discussion. Laws, court orders and implementation dates can change. Check the official sources before relying on a legal detail. How we report and classify policy.