EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G 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. *hb1327* HOUSE BILL 1327 M1 5lr2011 CF SB 980 By: Delegate Wivell Introduced and read first time: February 7, 2025 Assigned to: Environment and Transportation Committee Report: Favorable with amendments House action: Adopted Read second time: March 23, 2025 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 grants 3 and loans to certain entities for the management of certified heritage areas under 4 certain circumstances; establishing the maximum funding amount of certain grants 5 made by the Maryland Heritage Areas Authority; decreasing the percentage of 6 Program Open Space funds transferred to the Maryland Heritage Areas Authority 7 Financing Fund that may be used for certain operating expenses; repealing a 8 provision of law authorizing the distribution of certain money to the Maryland 9 Historical Trust; increasing the maximum amount of certain funding available to the 10 State that may be transferred to the Maryland Heritage Areas Authority Financing 11 Fund; and generally relating to the Maryland Heritage Areas Authority. 12 BY repealing and reenacting, with amendments, 13 Article – Financial Institutions 14 Section 13–1113 and 13–1114 15 Annotated Code of Maryland 16 (2020 Replacement Volume and 2024 Supplement) 17 BY repealing and reenacting, with amendments, 18 Article – Natural Resources 19 Section 5–903(a)(1) and (2)(i) and (iv) 20 Annotated Code of Maryland 21 (2023 Replacement Volume and 2024 Supplement) 22 2 HOUSE BILL 1327 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 That the Laws of Maryland read as follows: 2 Article – Financial Institutions 3 13–1113. 4 (a) As provided in the State budget, AND SUBJECT TO SUBSE CTION (E) OF THIS 5 SECTION, the Authority may award: 6 (1) Grants and loans to local jurisdictions or other appropriate entities for 7 planning, design, acquisition, development, preservation, restoration, interpretation, 8 marketing, [and] programming, AND MANAGEMENT of certified heritage areas; and 9 (2) Grants to local jurisdictions or other appropriate entities to develop 10 management plans in recognized heritage areas. 11 (b) A grant to develop a management plan may not exceed [50%] 80% of the cost 12 of the management plan. 13 (c) An acquisition or development grant: 14 (1) May not be used for any purpose other than implementation of the 15 certified heritage area in conformity with the approved management plan; [and] 16 (2) MAY BE IN AN AMOUNT U P TO $300,000; AND 17 (3) May not exceed [50%] 80% of the total project cost for which the grant 18 is awarded. 19 (d) (1) Subject to paragraph (2) of this subsection, the Authority may make 20 program grants to local jurisdictions and other appropriate entities: 21 (i) To develop and present interpretive exhibits, materials or other 22 appropriate products to further the educational and recreational objectives of the certified 23 heritage areas program; and 24 (ii) To encourage revitalization of, and reinvestment in, certified 25 heritage area resources. 26 (2) A program grant made by the Authority under paragraph (1) of this 27 subsection [may]: 28 (I) MAY BE IN AN AMOUNT U P TO $300,000; AND 29 (II) MAY not exceed [50%] 80% of the estimated project cost. 30 HOUSE BILL 1327 3 (e) Through the resources of the members of the Authority and in cooperation 1 with other State agencies, the Authority shall provide technical assistance to management 2 entities implementing a management plan. 3 13–1114. 4 (a) There is a Maryland Heritage Areas Authority Financing Fund. 5 (b) (1) The Authority shall use the Fund as a continuing, nonlapsing, revolving 6 fund for carrying out the purposes of this subtitle. 7 (2) No part of the Fund may revert or be credited to the General Fund or 8 to any other special fund of the State. 9 (c) The Authority shall place all of the following receipts in the Fund: 10 (1) Proceeds from the sale of bonds; 11 (2) Revenues that the Authority collects or receives from any source under 12 this subtitle; and 13 (3) Any additional revenue, gift, donation, or money received or paid to it 14 from any other source authorized by law. 15 (d) The Authority shall pay all expenses and make all expenditures from the 16 Fund. 17 (e) (1) The Authority may pledge and charge all or a portion of the receipts of 18 the Fund for the payment of: 19 (i) Debt service on bonds of the Authority; and 20 (ii) All reasonable charges and expenses related to borrowing by the 21 Authority and management of the obligations of the Authority. 22 (2) A pledge made under paragraph (1) of this subsection is effective as 23 provided in § 13–1119 of this subtitle and any applicable resolution of the Authority. 24 (f) The State Treasurer shall: 25 (1) Invest and reinvest the Fund in the same manner as State funds; and 26 (2) Transfer any investment earnings to the credit of the Fund. 27 4 HOUSE BILL 1327 (g) (1) In this subsection, “Program Open Space funds transferred to the 1 Authority” means the money appropriated to the Fund from Program Open Space funds 2 under § 5–903(a) of the Natural Resources Article. 3 (2) Except as provided in paragraph (3) of this subsection, Program Open 4 Space funds transferred to the Authority may not be used to pay the operating expenses of 5 the Authority, debt service of bonds issued by the Authority, or administrative expenses 6 related to bonds issued by the Authority. 7 (3) (i) Up to [10%] 7% OR $600,000, WHICHEVER AMOUNT IS 8 GREATER, of Program Open Space funds transferred to the Authority may be used to pay 9 the operating expenses of the Authority. 10 (ii) Up to 50% of Program Open Space funds transferred to the 11 Authority may be expended for debt service on bonds issued by the Authority. 12 (iii) For fiscal year 2012 only, an additional $500,000 of Program 13 Open Space funds transferred to the Authority may be used to pay operating expenses in 14 the Department of Planning. 15 Article – Natural Resources 16 5–903. 17 (a) (1) [(i)] Of the funds distributed to Program Open Space under § 13–209 18 of the Tax – Property Article, up to $3,000,000 may be transferred by an appropriation in 19 the State budget, or by an amendment to the State budget under Title 7, Subtitle 2 of the 20 State Finance and Procurement Article, to the Maryland Heritage Areas Authority 21 Financing Fund established under Title 13, Subtitle 11 of the Financial Institutions Article 22 to be used for the purposes provided in that subtitle. 23 [(ii) Of the amount transferred under subparagraph (i) of this 24 paragraph, up to $300,000 may be distributed to the Maryland Historical Trust within the 25 Department of Planning to be awarded as noncapital historic preservation grants.] 26 (2) (i) 1. Of the remaining funds not appropriated under paragraph 27 [(1)(i)] (1) of this subsection: 28 A. One half of the funds shall be used for recreation and open 29 space purposes by the Department and the Historic St. Mary’s City Commission; and 30 B. 20% of the funds or $21,000,000, whichever is greater, 31 shall be appropriated to the Forest and Park Service in the Department to operate State 32 forests and parks. 33 HOUSE BILL 1327 5 2. Except as otherwise provided in this section, any funds the 1 General Assembly appropriates to the State under this subsection shall be used only for 2 land acquisition projects. 3 (iv) In addition to the $3,000,000 under paragraph [(1)(i)] (1) of this 4 subsection that may be transferred to the Maryland Heritage Areas Authority Financing 5 Fund, up to [$3,000,000] $9,000,000 of the State’s share of funds available under 6 subparagraph (i)1A of this paragraph may be transferred by an appropriation in the State 7 budget or by an amendment to the State budget under Title 7, Subtitle 2 of the State 8 Finance and Procurement Article to the Maryland Heritage Areas Authority Financing 9 Fund established under Title 13, Subtitle 11 of the Financial Institutions Article to be used 10 for the purposes provided in that subtitle. 11 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 12 1, 2025. 13 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ Speaker of the House of Delegates. ________________________________________________________________________________ President of the Senate.