St. Mary’s County Moves Closer To Awarding $1.5 Million In Community Grants Through Cannabis Reinvestment Fund

LEONARDTOWN, Md. — The Commissioners of St. Mary’s County held a public hearing July 14 on a proposed ordinance that would formally establish the county’s Community Reinvestment and Repair Fund (CRRF) and create the local process for distributing more than $1.5 million in state cannabis-related funding to eligible nonprofit organizations and community-based initiatives.

The proposed ordinance, presented by Deputy County Attorney John Sterling Houser, would establish the St. Mary’s County Community Reinvestment and Repair Fund and authorize the county to begin accepting grant applications for projects intended to improve economic, educational and health outcomes in eligible communities.

Ordinance Creates Local Grant Program

Houser explained that while Maryland established the Community Reinvestment and Repair Fund through the Cannabis Reform Act of 2023, local jurisdictions are required to adopt their own ordinances outlining how the funds will be distributed.

“This is the long-awaited ordinance that would create formally the St. Mary’s County Community Reinvestment and Repair Fund,” Houser said, “and then create the framework … to begin soliciting proposals for grants.”

St. Mary’s County has accumulated approximately $1.54 million through quarterly distributions from Maryland’s cannabis sales tax, one-time medical cannabis license conversion fees and interest earned while the funds have remained in a separate county account.

Houser explained that roughly one-third of the current balance came from one-time license conversion fees paid when medical cannabis businesses converted to recreational licenses.

“We are not seeing that money again going forward,” Houser said. “It’s only the tax revenue that is going to continue populating the fund.”

He noted the county is expected to continue receiving quarterly tax distributions through at least 2033 unless the state changes the funding structure.

How The Program Would Work

If approved, the ordinance would establish the Community Reinvestment and Repair Fund as a separate, nonlapsing county fund and require the county administrator, or a designee, to conduct an annual application process for eligible organizations.

Grant applications would be publicly advertised, remain open for at least 45 days, undergo staff review for technical sufficiency and then be presented to the Commissioners, who would retain final authority over funding decisions.

Commissioner Eric Colvin reminded attendees that the hearing focused solely on creating the funding process — not selecting recipients.

“Tonight’s public hearing is about the process that we have,” Colvin said. “It is not about the actual organizations that are going to be receiving the funding.”

Houser added that once the ordinance is adopted, county staff will begin building the application portal using a process similar to the county’s existing nonprofit grant program.

Commissioner Vice President Scott Ostrow asked whether state law would allow the county to establish an advisory committee to review grant applications rather than having recommendations handled solely through county staff.

Houser said the recently released state regulations authorize local governments to create advisory commissions to assist with funding recommendations, but such committees are optional.

“You have all the right in the world to reserve the final decision” to the Commissioners, Houser said, “or to elect a committee.”

State Guidance Continues To Evolve

Houser also informed Commissioners that after the ordinance was introduced in June, the Maryland Office of Social Equity released long-awaited emergency regulations that provide additional guidance on administering the fund.

Among the changes is a broader definition of a “low-income community,” increasing the eligibility threshold from the county’s proposed 70% of area median income to 80% of area median income under the state’s emergency regulations.

The state also clarified that recipients generally must be IRS-recognized nonprofit organizations in good standing with Maryland, narrowing some of the broader eligibility language originally proposed by county staff.

Houser said the Commissioners may choose to amend the ordinance to align with the state’s regulations or retain portions of the county’s original proposal.

Residents Urge Transparency, Community Investment And Local Input

Nearly a dozen residents addressed the Commissioners during the public hearing, with many expressing support for the Community Reinvestment and Repair Fund while urging county leaders to ensure the funding process remains transparent and focused on communities most affected by past cannabis enforcement.

Several speakers encouraged the county to prioritize Lexington Park’s 20653 ZIP code, the only area in St. Mary’s County designated by the Maryland Office of Social Equity as a disproportionately impacted community.

One resident, who works with local homeless organizations, urged Commissioners to take a broad view of what community investment should mean.

“Our community includes everyone. We should not decide who makes up our community based on their ability to pay to exist here.”

The speaker pointed to growing homelessness throughout Southern Maryland and encouraged the county to consider projects addressing affordable housing, emergency shelter and homelessness prevention.

Another resident representing a local nonprofit encouraged Commissioners to evaluate organizations based on their impact rather than simply reviewing grant applications.

“I hope that the process looks at not just the organizations, but how they’re affecting the community … and distributes that money in a way that will help those organizations do more in the community.”

Several speakers later echoed support for creating a community advisory committee, saying residents with experience in community advocacy, workforce development and neighborhoods most affected by past cannabis enforcement should help evaluate grant applications before funding recommendations are made.

One resident told Commissioners:

“Let the people in this commission with these backgrounds decide on the merits of the projects.”

Education also emerged as a recurring topic throughout the hearing.

One resident urged the county to prioritize literacy initiatives in Lexington Park, telling Commissioners:

“If you can’t read, you can’t do math.”

The speaker encouraged investments in after-school reading programs, parent engagement initiatives, partnerships with libraries and schools, and other educational opportunities for children in high-poverty communities.

Other speakers highlighted aging infrastructure, neighborhood conditions and the need to direct funding toward long-standing community challenges, while several nonprofit organizations expressed interest in applying once the grant process opens.

One Lexington Park resident reminded Commissioners that the fund’s purpose extends beyond distributing money.

“The word repair is an opportunity. Let’s use this as an opportunity to reverse that — and to repair.”

What’s Next?

Written public comments will be accepted through 5 p.m. Tuesday, July 21, before county staff prepares a report summarizing the testimony received during the hearing. The Commissioners are expected to consider the ordinance during their July 28 meeting, where they may approve it, reject it or direct staff to make revisions.

If adopted, county staff will begin developing the online application portal and launch the county’s first Community Reinvestment and Repair Fund grant cycle. Applications must remain open for at least 45 days, after which staff will review submissions and present funding recommendations to the Commissioners for final approval.

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