Proposed Community Reinvestment And Repair Fund Heads To Public Hearing In St. Mary’s County

LEONARDTOWN, Md. — St. Mary’s County officials are moving forward with plans to establish a local Community Reinvestment and Repair Fund, a program designed to distribute state cannabis tax revenues toward community-based initiatives serving low-income and disproportionately impacted communities.

During the June 9 meeting of the Commissioners of St. Mary’s County, Deputy County Attorney John Sterling Houser presented a request to schedule a public hearing on a proposed ordinance creating the St. Mary’s County Community Reinvestment and Repair Fund (CRRF). Following discussion, commissioners unanimously approved a motion to hold the public hearing on the evening of July 14, 2026.

The proposed ordinance is required under Maryland’s Cannabis Reform Act of 2023, which established a statewide Community Reinvestment and Repair Fund. The legislation directs a portion of adult-use cannabis tax revenue to local jurisdictions for programs intended to address longstanding social and economic inequities in communities disproportionately impacted by prior cannabis enforcement policies.

“This is a request for a public hearing, so there will be a chance for public input, suggestions, ideas and feedback,” Houser told commissioners. “The ordinance can be changed, altered, amended, as the commissioners may deem in response to public comments or additional ideas that may come up between now and final approval.”

What The Fund Would Do

Under the proposed ordinance, the St. Mary’s County Community Reinvestment and Repair Fund would be established as a separate, non-lapsing fund that would receive state distributions, county appropriations, donations and any returned grant funds.

Funding could be awarded to eligible individuals, nonprofits, community organizations and other entities for projects that support community-based initiatives benefiting low-income communities or disproportionately impacted areas, as defined under Maryland law. The ordinance specifically prohibits funds from being used to supplant existing county funding and bars distributions for law enforcement agencies or activities.

According to Houser, the county currently has approximately $1.5 million available from prior state distributions.

“We have this money in the bank,” Houser said during the discussion. “I think it’s important to disperse it.”

Application And Grant Process

If adopted, the ordinance would direct the county administrator or a designee to establish an annual application process for eligible projects.

Applications would be publicly advertised, posted on the county website and remain open for at least 45 days. County staff would review submissions for technical compliance before forwarding recommendations to the commissioners, who would retain final authority over funding decisions.

Commissioner Mike Hewitt sought clarification on how the process would work.

“This ordinance sets up this fund for the county, and then the money that’s in the fund, community groups, nonprofits, individuals with projects that meet the criteria can submit an application,” Hewitt said. “Then it comes back and the county administrator or a designee will vet the application to make sure it meets the criteria, and then it comes to this board to decide how the money is allocated.”

“That’s what we’re imagining,” Houser responded.

Commissioners also discussed the importance of using the funds for projects with lasting community impact rather than recurring operational expenses.

Waiting On State Guidance

A significant portion of the discussion focused on the lack of finalized regulations from Maryland’s Office of Social Equity, the state agency tasked with providing guidance to local governments on administering the funds.

Houser noted that state regulations were originally expected by October 2025 but have yet to be finalized.

“There has been no word, no blurb, no official action from the Office of Social Equity to my knowledge since,” Houser said. “There is nothing on the books.”

Commissioner Scott Ostrow expressed concern about distributing funds without definitive state guidance but also emphasized the need to begin putting the money to work in local communities.

“The last thing I want to see is, for some reason, the state decides you’re not spending it and we’re going to claw it back,” Ostrow said.

Houser told commissioners that approximately 19 to 20 Maryland counties have already adopted similar ordinances and moved forward with local funding frameworks despite the absence of finalized state regulations.

Public Hearing Scheduled

The public hearing on the proposed Community Reinvestment and Repair Fund ordinance is scheduled for July 14, 2026, in the Commissioners Meeting Room at the Chesapeake Building, 41770 Baldridge St. in Leonardtown.

Residents may attend in person, submit comments by email to csmc@stmaryscountymd.gov, or mail comments to the Commissioners of St. Mary’s County, P.O. Box 653, Leonardtown, MD 20650. Written submissions will be accepted through 5 p.m. July 21.

If adopted following the public hearing process, the ordinance would establish the framework for distributing cannabis-related reinvestment funding to eligible community initiatives throughout St. Mary’s County.

What Is The Community Reinvestment And Repair Fund?

The Community Reinvestment and Repair Fund (CRRF) was created by Maryland’s Cannabis Reform Act of 2023. The fund receives a portion of state adult-use cannabis tax revenues and distributes money to local jurisdictions.

The purpose of the fund is to support community-based initiatives that improve economic, educational and health outcomes in low-income communities and areas disproportionately affected by past cannabis-related enforcement. Eligible recipients may include nonprofits, community organizations, public entities and individuals proposing qualifying projects. St. Mary’s County has received approximately $1.5 million in CRRF funding to date and is developing a local grant process to distribute those funds.

You can watch the full meeting below at 25:26.

---