1. (a)

   1. (1) In this section the following words have the meanings indicated.
   2. (2) “Administration” has the meaning stated in § 36-101 of this article.
   3. (3) “Cannabis licensee” has the meaning stated in § 36-101 of this article.
   4. (4) “Grant Program” means the Social Equity Partnership Grant Program.
   5. (5) “Office” means the Office of Social Equity.

   6. (6)

      1. (i) “Qualifying partnership” means a meaningful partnership between an operational cannabis licensee and a social equity licensee that:

         1. 1. supports or advises the social equity licensee; and
         2. 2. is authorized by the Administration.

      2. (ii) “Qualifying partnership” includes a partnership through which the operational cannabis licensee provides any of the following to a social equity licensee:

         1. 1. training;
         2. 2. mentorship; or
         3. 3. shared commercial space or equipment.
   7. (7) “Social equity licensee” has the meaning stated in § 36-101 of this article.

2. (b)

   1. (1) There is a Social Equity Partnership Grant Program in the Office.
   2. (2) The purpose of the Grant Program is to promote qualifying partnerships between operational cannabis licensees and social equity licensees.

3. (c)

   1. (1) The Office shall implement and administer the Grant Program, including by clearly defining the parameters of a qualifying partnership.
   2. (2) Subject to paragraph (3) of this subsection, the Office has discretion to approve, deny, or revoke qualifying partnerships.

   3. (3)

      1. (i) The Office may approve qualifying partnerships where a cost or other fee is imposed by an operational cannabis licensee on a social equity licensee if the cost or other fee is substantially reduced from the market value.
      2. (ii) Costs or other fees under subparagraph (i) of this paragraph may include charges for the rent of facilities or equipment.

4. (d)

   1. (1) The Office shall award grants to operational cannabis licensees that have qualifying partnerships with a social equity licensee.
   2. (2) Grant amounts shall be based on the nature of the qualifying partnership between the social equity licensee and the operational cannabis licensee.

   3. (3) If an operational cannabis licensee has a license that was converted by the Administration under § 36-401(b)(1)(ii) of this article, the total amount of grants issued by the Office under this section to the licensee may not exceed:

      1. (i) the cost of the license conversion fee that was paid by the licensee; or
      2. (ii) $250,000 per year per qualifying partnership.
5. (e) The Office may require a grant recipient that fails to fulfill the requirements of the grant to return all or part of the grant to the Grant Program.
6. (f) For fiscal year 2025 and each fiscal year thereafter, the Governor shall include in the annual budget bill an appropriation of $5,000,000 for the Grant Program, utilizing the Cannabis Regulation and Enforcement Fund established under § 36-206 of this article.

7. (g) The Office shall adopt regulations to:

   1. (1) implement the provisions of this section;
   2. (2) administer the Grant Program;
   3. (3) establish eligibility and grant application requirements;
   4. (4) establish a process for reviewing grant applications and awarding grants to operational cannabis licensees; and
   5. (5) specify criteria and procedures to monitor eligibility for the grants authorized under this section.

Added as Alcoholic Beverages and Cannabis § 1-323 by Acts 2023, c. 254, § 5, eff. May 3, 2023; Acts 2023, c. 255, § 5, eff. May 3, 2023. Renumbered as Alcoholic Beverages and Cannabis § 1-322 by Acts 2025, c. 195, § 2, eff. June 1, 2025. Amended by Acts 2025, c. 604, § 1, eff. June 1, 2025.