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*sb0638*
SENATE BILL 638
M1 (6lr0843)
ENROLLED BILL
— Budget and Taxation/Environment and Transportation —
Introduced by Senators Corderman, Bailey, Gallion, Salling, Folden, and Simonaire
Simonaire, Augustine, Guzzone, Hettleman, Jennings, King, Lewis Young,
McCray, Rosapepe, and Zucker
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
President.
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 Maryland Historical Trust; increasing the maximum amount of certain 11
funding available to the State that may be transferred to the Maryland Heritage 12
2 SENATE BILL 638
Areas Authority Financing Fund; and ge nerally relating to the Maryland Heritage 1
Areas Authority. 2
BY repealing and reenacting, with amendments, 3
Article – Financial Institutions 4
Section 13–1113 and 13–1114 5
Annotated Code of Maryland 6
(2020 Replacement Volume and 2025 Supplement) 7
BY repealing and reenacting, without amendments, 8
Article – Natural Resources 9
Section 5–903(a)(1) and (2)(i) 10
Annotated Code of Maryland 11
(2023 Replacement Volume and 2025 Supplement) 12
BY repealing and reenacting, with amendments, 13
Article – Natural Resources 14
Section 5–903(a)(1) and (2)(i) and (iv) Section 5–903(a)(2)(iv) 15
Annotated Code of Maryland 16
(2023 Replacement Volume and 2025 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Financial Institutions 20
13–1113. 21
(a) As provided in the State budget AND SUBJECT TO SUBSECTION (D) OF THIS 22
SECTION IN ACCORDANCE WITH T ERMS AND CONDITIONS THE AUTHORITY 23
ESTABLISHES, the Authority may award: 24
(1) Grants and loans to local jurisdictions or other appropriate entities for 25
planning, design, acquisition, development, preservation, restoration, interpretation, 26
marketing, [and] programming, AND MANAGEMENT of certified heritage areas; and 27
(2) Grants to local jurisdictions or other appropriate entities to develop: 28
(I) DEVELOP management plans in recognized heritage areas; AND 29
(II) ENCOURAGE REVITALIZAT ION OF AND REINVESTM ENT IN 30
CERTIFIED HERITAGE AREA RESOURCES. 31
(B) IN AWARDING A GRANT O R LOAN UNDER SUBSECT ION (A) OF THIS 32
SECTION, THE AUTHORITY MAY REQUIRE MATCHING FUNDS IN WH ATEVER 33
PROPORTION THE AUTHORITY CONSIDERS APPROPRIATE. 34
SENATE BILL 638 3
(b) [A grant to develop a management plan may not exceed 50% of the cost of the 1
management plan. 2
(c)] An acquisition or development grant[: 3
(1) May] MAY not be used for any purpose other than implementation of 4
the certified heritage area in conformity with the approved management plan[; and 5
(2) May not exceed 50% of the total project cost for which the grant is 6
awarded]. 7
[(d)] (C) [(1) Subject to paragraph (2) of this subsection, the ] THE Authority 8
may make program grants to local jurisdictions and other appropriate entities: 9
[(i)] (1) To develop and present interpretive exhibits, materials or 10
other appropriate products to further the educatio nal and recreational objectives of the 11
certified heritage areas program; and 12
[(ii)] (2) To encourage revitalization of, and reinvestment in, 13
certified heritage area resources. 14
[(2) A program grant made by the Authority under paragraph (1) of this 15
subsection may not exceed 50% of the estimated project cost.] 16
[(e)] (D) (C) Through the resources of the members of the Authority and in 17
cooperation with other State agencies, the Authority shall provide technical assistance to 18
management entities implementing a management plan. 19
13–1114. 20
(a) There is a Maryland Heritage Areas Authority Financing Fund. 21
(b) (1) The Authority shall use the Fund as a continuing, nonlapsing, revolving 22
fund for carrying out the purposes of this subtitle. 23
(2) No part of the Fund may revert or be credited to the General Fund or 24
to any other special fund of the State. 25
(c) The Authority shall place all of the following receipts in the Fund: 26
(1) Proceeds from the sale of bonds; 27
(2) Revenues that the Authority collects or receives from any source under 28
this subtitle; and 29
4 SENATE BILL 638
(3) Any additional revenue, gift, donation, or money received or paid to it 1
from any other source authorized by law. 2
(d) The Authority shall pay all expenses and make all expenditures from the 3
Fund. 4
(e) (1) The Authority may pledge and charge all or a portion of the receipts of 5
the Fund for the payment of: 6
(i) Debt service on bonds of the Authority; and 7
(ii) All reasonable charges and expenses related to borrowing by the 8
Authority and management of the obligations of the Authority. 9
(2) A pledge made under paragraph (1) of this subsection is effective as 10
provided in § 13–1119 of this subtitle and any applicable resolution of the Authority. 11
(f) The State Treasurer shall: 12
(1) Invest and reinvest the Fund in the same manner as State funds; and 13
(2) Transfer any investment earnings to the credit of the Fund. 14
(g) (1) In this subsection, “Program Open Space funds transferred to the 15
Authority” means the money appropriated to the Fund from Program Open Space funds 16
under § 5–903(a) of the Natural Resources Article. 17
(2) Except as provided in paragraph (3) of this subsection, Program Open 18
Space funds transferred to the Authority may not be used to pay the operating expenses of 19
the Authority, debt service of bonds issued by the Authority, or administrative expenses 20
related to bonds issued by the Authority. 21
(3) (i) Up to [10%] 7% OR $600,000, WHICHEVER AMOUNT IS 22
GREATER, of Program Open Space funds transferred to the Authority may be used to pay 23
the operating expenses of the Authority. 24
(ii) Up to 50% of Program Open Space funds transferred to the 25
Authority may be expended for debt service on bonds issued by the Authority. 26
(iii) For fiscal year 2012 only, an additional $500,000 of Program 27
Open Space funds transferred to the Authority may be used to pay operating expenses in 28
the Department of Planning. 29
(iv) For fiscal year 2026 only, an additional $340,000 of Program 30
Open Space funds transferred to the Authority may b e used to pay operating expenses in 31
the Department of Planning. 32
SENATE BILL 638 5
Article – Natural Resources 1
5–903. 2
(a) (1) [(i)] Of the funds distributed to Program Open Space under § 13–209 3
of the Tax – Property Article, up to $3,000,000 may be transferred by an appr opriation in 4
the State budget, or by an amendment to the State budget under Title 7, Subtitle 2 of the 5
State Finance and Procurement Article, to the Maryland Heritage Areas Authority 6
Financing Fund established under Title 13, Subtitle 11 of the Financial Institutions Article 7
to be used for the purposes provided in that subtitle. 8
[(ii) Of the amount transferred under subparagraph (i) of this 9
paragraph, up to $300,000 may be distributed to the Maryland Historical Trust within the 10
Department of Planning to be awarded as noncapital historic preservation grants.] 11
(2) (i) 1. Of the remaining funds not appropriated under paragraph 12
[(1)(i)] (1) of this subsection: 13
A. One half of the funds shall be used for recreation and open 14
space purposes by the Department and the Historic St. Mary’s City Commission; and 15
B. 20% of the funds or $21,000,000, whichever is greater, 16
shall be appropriated to the Forest and Park Service in the Department to operate State 17
forests and parks. 18
2. Except as otherwise provided in this section, any funds the 19
General Assembly appropriates to the State under this subsection shall be used only for 20
land acquisition projects. 21
(iv) In addition to the $3,000,000 under paragraph [(1)(i)] (1) of this 22
subsection that may be transferred to the Maryland Heritage Areas Authority Financing 23
Fund, up to [$3,000,000] $9,000,000 of the State’s share of funds available under 24
subparagraph (i)1A of this paragraph may be transferred by an appropriation in the State 25
budget or by an amendm ent to the State budget under Title 7, Subtitle 2 of the State 26
Finance and Procurement Article to the Maryland Heritage Areas Authority Financing 27
Fund established under Title 13, Subtitle 11 of the Financial Institutions Article to be used 28
for the purposes provided in that subtitle. 29
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 30
1, 2026. 31