Read the full stored bill text
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0654*
HOUSE BILL 654
M1 6lr1993
HB 1327/25 – ENT CF SB 638
By: Delegates Behler and Hinebaugh, Hinebaugh, Allen, Guyton, Holmes, Jacobs,
Lewis, T. Morgan, Odom, and Stein
Introduced and read first time: January 30, 2026
Assigned to: Environment and Transportation
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 23, 2026
CHAPTER ______
AN ACT concerning 1
Natural Resources – Maryland Heritage Areas Authority – Funding and Grants 2
FOR the purpose of authorizing the Maryland Heritage Areas Authority to award certain 3
grants and loans to certain entities for the management of certified heritage areas 4
under certain circumstances; repealing limits on the percentage of project costs that 5
may be covered by certain grants made by the Authority for certain purposes in a 6
certain manner; repealing certain requirements for certain grants and loans ; 7
decreasing the percentage of Program Open Space funds transferred to the Maryland 8
Heritage Areas Authority Financing Fund that may be used for certain operating 9
expenses; repealing a provision of law authorizing the distribution of certain money 10
to the M aryland Historical Trust; increasing the maximum amount of certain 11
funding available to the State that may be transferred to the Maryland Heritage 12
Areas Authority Financing Fund; and generally relating to the Maryland Heritage 13
Areas Authority. 14
BY repealing and reenacting, with amendments, 15
Article – Financial Institutions 16
Section 13–1113 and 13–1114 17
Annotated Code of Maryland 18
(2020 Replacement Volume and 2025 Supplement) 19
BY repealing and reenacting, without amendments, 20
Article – Natural Resources 21
Section 5–903(a)(1) and (2)(i) 22
2 HOUSE BILL 654
Annotated Code of Maryland 1
(2023 Replacement Volume and 2025 Supplement) 2
BY repealing and reenacting, with amendments, 3
Article – Natural Resources 4
Section 5–903(a)(1) and (2)(i) and (iv) Section 5–903(a)(2)(iv) 5
Annotated Code of Maryland 6
(2023 Replacement Volume and 2025 Supplement) 7
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8
That the Laws of Maryland read as follows: 9
Article – Financial Institutions 10
13–1113. 11
(a) As provided in the State budget AND SUBJECT TO SUBSECTION (D) OF THIS 12
SECTION IN ACCORDANCE WITH T ERMS AND CONDITIONS THE AUTHORITY 13
ESTABLISHES, the Authority may award: 14
(1) Grants and loans to local jurisdictions or other appropriate entities for 15
planning, design, acquisition, develo pment, preservation, restoration, interpretation, 16
marketing, [and] programming, AND MANAGEMENT of certified heritage areas; and 17
(2) Grants to local jurisdictions or other appropriate entities to develop: 18
(I) DEVELOP management plans in recognized heritage areas; AND 19
(II) ENCOURAGE REVITALIZAT ION OF AND REINVESTM ENT IN 20
CERTIFIED HERITAGE AREA RESOURCES. 21
(B) IN AWARDING A GRANT O R LOAN UNDER SUBSECT ION (A) OF THIS 22
SECTION, THE AUTHORITY MAY REQUIRE MATCHING FUNDS IN WHATEVER 23
PROPORTION THE AUTHORITY CONSIDERS APPROPRIATE. 24
(b) [A grant to develop a management plan may not exceed 50% of the cost of the 25
management plan. 26
(c)] An acquisition or development grant[: 27
(1) May] MAY not be used for any purpose other than implementation of 28
the certified heritage area in conformity with the approved management plan[; and 29
(2) May not exceed 50% of the total project cost for which the grant is 30
awarded]. 31
HOUSE BILL 654 3
[(d)] (C) [(1) Subject to paragraph (2) of this subsection, the ] THE Authority 1
may make program grants to local jurisdictions and other appropriate entities: 2
[(i)] (1) To develop and present interpretive exhibits, materials or 3
other appropriate products to further the educational and recreational objectives of the 4
certified heritage areas program; and 5
[(ii)] (2) To encourage revitalization of, and reinvestment in, 6
certified heritage area resources. 7
[(2) A program grant made by the Authority under paragraph (1) of this 8
subsection may not exceed 50% of the estimated project cost.] 9
[(e)] (D) (C) Through the resources of the members of the Authority and in 10
cooperation with other State agencies, the Authority shall provide technical assistance to 11
management entities implementing a management plan. 12
13–1114. 13
(a) There is a Maryland Heritage Areas Authority Financing Fund. 14
(b) (1) The Authority shall use the Fund as a continuing, nonlapsing, revolving 15
fund for carrying out the purposes of this subtitle. 16
(2) No part of the Fund may revert or be credited to the General Fund or 17
to any other special fund of the State. 18
(c) The Authority shall place all of the following receipts in the Fund: 19
(1) Proceeds from the sale of bonds; 20
(2) Revenues that the Authority collects or receives from any source under 21
this subtitle; and 22
(3) Any additional revenue, gift, donation, or money received or paid to it 23
from any other source authorized by law. 24
(d) The Authority shall pay all expenses and make all expenditures from the 25
Fund. 26
(e) (1) The Authority may pledge and charge all or a portion of the receipts of 27
the Fund for the payment of: 28
(i) Debt service on bonds of the Authority; and 29
4 HOUSE BILL 654
(ii) All reasonable charges and expenses related to borrowing by the 1
Authority and management of the obligations of the Authority. 2
(2) A pledge made under paragraph (1) of this subsection is effective as 3
provided in § 13–1119 of this subtitle and any applicable resolution of the Authority. 4
(f) The State Treasurer shall: 5
(1) Invest and reinvest the Fund in the same manner as State funds; and 6
(2) Transfer any investment earnings to the credit of the Fund. 7
(g) (1) In this subsection, “Program Open Space funds transferred to the 8
Authority” means the money appropriated to the Fund from Program Open Space funds 9
under § 5–903(a) of the Natural Resources Article. 10
(2) Except as provided in paragraph (3) of this subsection, Program Open 11
Space funds transferred to the Authority may not be used to pay the operating expenses of 12
the Authority, debt service of bonds issued by the Authority, or administrative expenses 13
related to bonds issued by the Authority. 14
(3) (i) Up to [10%] 7% OR $600,000, WHICHEVER AMOUNT IS 15
GREATER, of Program Open Space funds transferred to the Authority may be used to pay 16
the operating expenses of the Authority. 17
(ii) Up to 50% of Program Open Space funds transferred to the 18
Authority may be expended for debt service on bonds issued by the Authority. 19
(iii) For fiscal year 2012 only, an additional $500,000 of Program 20
Open Space funds transferred to the Authority may be used to pay operating expenses in 21
the Department of Planning. 22
(iv) For fiscal year 2026 only, an additional $340,000 of Program 23
Open Space funds transferred to the Authority may be used to pay operating expenses in 24
the Department of Planning. 25
Article – Natural Resources 26
5–903. 27
(a) (1) [(i)] Of the funds distributed to Program Open Space under § 13–209 28
of the Tax – Property Article, up to $3,000,000 may be transferred by an appropriation in 29
the State budget, or by an amendment to the State budget under Title 7, Subtitle 2 of the 30
State Finance and Procurement Article, to the Maryland Heritage Areas Authority 31
Financing Fund established under Title 13, Subtitle 11 of the Financial Institutions Article 32
to be used for the purposes provided in that subtitle. 33
HOUSE BILL 654 5
[(ii) Of the amount transferred under subparagraph (i) of this 1
paragraph, up to $300,000 may be distributed to the Maryland Historical Trust within the 2
Department of Planning to be awarded as noncapital historic preservation grants.] 3
(2) (i) 1. Of the remaining funds not appropriated under paragraph 4
[(1)(i)] (1) of this subsection: 5
A. One half of the funds shall be used for recreation and open 6
space purposes by the Department and the Historic St. Mary’s City Commission; and 7
B. 20% of the funds or $21,000,000, whichever is greater, 8
shall be appropriated to the Forest and Park Service in the Department to operate State 9
forests and parks. 10
2. Except as otherwise provided in this section, any funds the 11
General Assembly appropriates to the State under this subsection shall be used only for 12
land acquisition projects. 13
(iv) In addition to the $3,000,000 under paragraph [(1)(i)] (1) of this 14
subsection that may be transferre d to the Maryland Heritage Areas Authority Financing 15
Fund, up to [$3,000,000] $9,000,000 of the State’s share of funds available under 16
subparagraph (i)1A of this paragraph may be transferred by an appropriation in the State 17
budget or by an amendment to the State budget under Title 7, Subtitle 2 of the State 18
Finance and Procurement Article to the Maryland Heritage Areas Authority Financing 19
Fund established under Title 13, Subtitle 11 of the Financial Institutions Article to be used 20
for the purposes provided in that subtitle. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
1, 2026. 23
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.