Following the November 2022 approval of a referendum to legalize the adult use of recreational cannabis, the Maryland Legislature passed the Cannabis Reform Act, consisting of Senate Bill 516 (S. 516) and House Bill 556 (H.D. 556), which establishes the parameters for sale, consumption, and regulation of cannabis in the State.[1] Governor Wes Moore signed the legislation into law on May 4, 2023.[2] The Cannabis Reform Act includes the creation of the Maryland Cannabis Administration, the tax rate and allocation of revenue from cannabis sales, and requirements for conversion of existing medical cannabis businesses, among other factors.[3] But the most compelling aspect of the Cannabis Reform Act may be its emphasis on the importance of social equity and diversity, particularly in communities most impacted by the War on Drugs.[4]

Racial disparity in drug enforcement, including cannabis prior to its legalization, is not a novel issue in the state of Maryland.[5] In 2018, Black individuals in Maryland were more than twice as likely than their white counterparts to be arrested for possession of cannabis.[6] The Maryland General Assembly acknowledged this issue when drafting the Cannabis Reform Act, emphasizing the need for social equity and diversity initiatives to mitigate longstanding racial disparities. [7] The Act requires the newly created Cannabis Administration to license at least five growers who “have not been fully compensated for the [historic] discrimination they have endured.” [8] Further, under the Act, the Cannabis Administration must conduct extensive outreach efforts to small-business, minority, and women business owners who may be interested in applying for cannabis licensing.[9] Additionally, between the first and second round of applications, the Maryland Attorney General will evaluate the diversity of license applicants, and decide whether a legal basis exists for creating additional measures to assist minorities and women in the cannabis industry.[10]

The Cannabis Reform Act establishes the Office of Social Equity as an independent office operating within the Maryland Cannabis Administration.[11] Governor Wes Moore will be tasked with appointing a director who must have a minimum of five years’ experience in civil rights advocacy, litigation, or another area of social justice.[12] The Office of Social Equity will chiefly promote and encourage participation in the cannabis industry by individuals from communities disproportionately harmed by the War on Drugs. [13] This office will also produce reports and recommendations on diversity and equity in cannabis business ownership and employment. [14]

The Act also creates a Community Reinvestment and Repair Fund. [15] The Fund’s purpose is to provide funding for organizations serving communities who have been harmed by the disproportionate enforcement of cannabis prohibition prior to legalization, determined by The Office of Social Equity in conjunction with the Maryland Attorney General’s Office. [16] The Office of Social Equity will consult with and assist the Maryland Comptroller in administering the Community Reinvestment and Repair Fund. [17] The Office of Social Equity will produce and publish an annual report on the allocation and use of funds by the Community Reinvestment and Repair Fund for the preceding year. [18] Additionally, the Office will solicit public input on the use of funds each year on or before November 1.[19]

These are only a handful of the initiatives introduced by the Maryland Legislature that aim to reconcile the unjust and disproportionate enforcement of cannabis prohibition prior to its legalization. While the legal cannabis industry in Maryland is still in its early stages, one thing is certain; social equity and diversity will be vital factors in the industry’s growth and regulation moving forward.

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Sienna Duran-Kneip is a second-year J.D. Candidate at the University of Baltimore School of Law and a Staff Editor for Law Forum. Sienna graduated from Chapman University in 2019 with a double major in Economics and Spanish, and a minor in Italian Studies. She works as a Paralegal/Case Manager at Kreindler & Kreindler, LLP, specializing in September 11th Victim Compensation Fund claims. During the summer of 2023, Sienna interned with Human Rights First on the D.C. Refugee Representation team. At UB, she serves as the Secretary of the International Law Society, 2L Representative for the Latin American Law Student Association, and is a member of the 2023-2024 Jessup International Law Moot Court team. Upon completion of her J.D., Sienna plans to continue her legal education abroad, pursuing an LLM in international human rights law. 

[1] Adult Use Cannabis Information, Comptroller of Md., (last visited Sept. 9, 2023), https://www.marylandtaxes.gov/cannabis/#:~:text=In%20November%202022%2C%20Maryland%20voters,signing%20on%20May%203%2C%202023.

[2] Id.

[3] Maryland Cannabis Regulation Laws: HB 556 and SB 516 Detailed Summary, The Marijuana Pol’y Project, (last visited Sept. 9, 2023), https://www.mpp.org/states/maryland/maryland-cannabis-regulation-laws-hb-556-and-sb-516-detailed-summary/.

[4] Brian Witte, Maryland Marijuana Measure Prioritizes Social Equity, Associated Press, (Feb. 3, 2023, 3:24 PM), https://apnews.com/article/politics-district-of-columbia-maryland-9203714ed30eb6419c3eb544021343bd.

[5] Neydin Milián, Time to Put an End to the Racist War on Marijuana, Amer. C.L. Union of Md., (Dec. 22, 2022, 1:30 PM), https://www.aclu-md.org/en/news/time-put-end-racist-war-marijuana.

[6] Id.

[7] Witte, supra note 4.

[8] S. 516, 2023 Leg., 445^th Sess. (Md. 2023)

[9] Cannabis Reform Act, ch. 255, 2023 Md. Laws. See S. 516, 2023 Gen. Assemb., 445th Sess. (Md. 2023). See In re Black Farmers Discrimination Litig., 856 F.Supp.2d 1 (D. D.C. 2011) (finding that the U.S. Department of Agriculture systematically discriminated against Black farmers on the basis of race by, inter alia, denying them loans and other benefits that were freely granted to similarly situated white farmers). See also Pigford v. Glickman 185 F.R.D. 82 (D.D.C. 1999).

[10] Cannabis Reform Act, supra note 9.

[11] The Marijuana Pol’y Project, supra note 3.

[12] Cannabis Reform Act, supra note 9.

[13] The Marijuana Policy Project, supra note 3.

[14] Cannabis Reform Act, supra note 9.

[15] Id.

[16] Id.

[17] Id.

[18] Id.

[19] Id.