On Friday, lawmakers unveiled a bill to tax and regulate marijuana, months after voters approved a referendum legalizing it.

The House legislation is sponsored by Dels. Vanessa Atterbeary (D) and C. T. Wilson (D), while the Senate version is sponsored by Sens. Brian Feldman (D) and Antonio Hayes (D).

As the state law legalizing the possession of up to 1.5 ounces of marijuana for adults takes effect on July 1, the measures will prepare the state to regulate cannabis commerce.

Cannabis would be taxed at six percent for the first fiscal year starting this summer, increasing by one percent each year until 2028, eventually reaching a maximum of ten percent.

A community reinvestment fund would receive 30 percent of marijuana tax revenue for at least the next 10 years under the bills. In addition, 1.5 percent of revenue would go to localities, while another 1.5 percent would go to the Cannabis Public Health Fund and the Cannabis Business Assistance Fund.

In order to regulate the program, the Marijuana Alcohol and Tobacco Commission would be renamed the Maryland Alcohol, Tobacco and Cannabis Commission. The commission would have an Office of Social Equity that would promote industry participation and provide technical assistance to people who have been disproportionately impacted by crime.

The office would also be charged with determining how to distribute marijuana tax dollars for the community reinvestment fund in conjunction with the state comptroller and the Maryland Department of Commerce.

After legalization takes effect on July 1, existing medical cannabis dispensaries will become dual licensees if they've paid fees. By July 1, 2024, regulators will begin approving new marijuana business licenses.

On Friday, Senate President Bill Ferguson (D) said the legislation "has the potential to be a national model."

It's a complex topic with many different components. No state has gotten it right. But my belief is that what we've done here is put us on the right path.

According to him, the proposal would both protect public health and ensure that those who have been harmed by the failed war on drugs have an equal chance to participate in the new marketplace.

To avoid a scenario similar to what was experienced in New York, where there are only two licensed retailers operating, but an estimated 1,400 unlicensed shops in operation, Ferguson said the state must be prepared to launch marijuana sales on July 1 and "thoughtfully" craft regulations.

“I hope we will be proud of the work we put into the final product when it is passed and signed by the governor — to learn from other states, to create an equitable and fair marketplace, as well as a new industry and market,” the Senate president said. “I feel really good about it.”

According to The Baltimore Banner, Gov. Wes Moore (D) considers the proposal "a well-crafted piece of legislation" and looks forward to working with the legislature in the future.

Bipartisan and bicameral members of the House Cannabis Referendum and Legalization Workgroup, which was formed by Speaker Adrienne Jones (D), contributed to the bill.

In response to the approval of a legalization referendum last year by Maryland voters, members have held numerous meetings to inform future regulations. As a result, complementary legislation covering basic policies like possession and low-level home cultivation has been implemented.

In addition to legalizing the purchase and possession of up to 1.5 ounces of cannabis for adults starting this summer, the legislation will also remove criminal penalties for possession of up to 2.5 ounces. In the future, individuals 21 and older will have the option of growing up to two plants for personal use and giving cannabis without remuneration.

In accordance with the proposed law, past convictions for crimes made legal will automatically be expunged, and people currently serving time for such crimes will be eligible for resentencing. As a result of the legislation, people convicted of possession with intent to distribute can petition the courts for expungement three years after serving out their sentence.

Cannabis possession up to 1.5 ounces became a civil offense, punishable by a $100 fine, with a $250 fine for more than 1.5 ounces and up to 2.5 ounces.

Maryland's legislature began to advance legalizing adult use in 2021, but no votes were cast. After a hearing on a separate cannabis proposal by the House Judiciary Committee, the Senate Finance Committee held a hearing on a legalization bill that year.

A law passed by the Maryland legislature in 2012 legalized medical cannabis. Two years later, a decriminalization law replaced criminal penalties for possession of less than 10 grams of marijuana with a civil fine of $100 to $500.