EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0980* SENATE BILL 980 M1 5lr3242 CF 5lr2011 By: Senator Corderman Introduced and read first time: January 28, 2025 Assigned to: Budget and Taxation A BILL ENTITLED 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 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23 That the Laws of Maryland read as follows: 24 Article – Financial Institutions 25 13–1113. 26 2 SENATE BILL 980 (a) As provided in the State budget, AND SUBJECT TO SUBSE CTION (E) OF THIS 1 SECTION, the Authority may award: 2 (1) Grants and loans to local jurisdictions or other appropriate entities for 3 planning, design, acquisition, development, preservation, restoration, interpretation, 4 marketing, [and] programming, AND MANAGEMENT of certified heritage areas; and 5 (2) Grants to local jurisdictions or other appropriate entities to develop 6 management plans in recognized heritage areas. 7 (b) A grant to develop a management plan may not exceed [50%] 80% of the cost 8 of the management plan. 9 (c) An acquisition or development grant: 10 (1) May not be used for any purpose other than implementation of the 11 certified heritage area in conformity with the approved management plan; [and] 12 (2) MAY BE IN AN AMOUNT U P TO $300,000; AND 13 (3) May not exceed [50%] 80% of the total project cost for which the grant 14 is awarded. 15 (d) (1) Subject to paragraph (2) of this subsection, the Authority may make 16 program grants to local jurisdictions and other appropriate entities: 17 (i) To develop and present interpretive exhibits, materials or other 18 appropriate products to further the educational and recreational objectives of the certified 19 heritage areas program; and 20 (ii) To encourage revitalization of, and reinvestment in, certified 21 heritage area resources. 22 (2) A program grant made by the Authority under paragraph (1) of this 23 subsection [may]: 24 (I) MAY BE IN AN AMOUNT U P TO $300,000; AND 25 (II) MAY not exceed [50%] 80% of the estimated project cost. 26 (e) Through the resources of the members of the Authority and in cooperation 27 with other State agencies, the Authority shall provide technical assistance to management 28 entities implementing a management plan. 29 13–1114. 30 SENATE BILL 980 3 (a) There is a Maryland Heritage Areas Authority Financing Fund. 1 (b) (1) The Authority shall use the Fund as a continuing, nonlapsing, revolving 2 fund for carrying out the purposes of this subtitle. 3 (2) No part of the Fund may revert or be credited to the General Fund or 4 to any other special fund of the State. 5 (c) The Authority shall place all of the following receipts in the Fund: 6 (1) Proceeds from the sale of bonds; 7 (2) Revenues that the Authority collects or receives from any source under 8 this subtitle; and 9 (3) Any additional revenue, gift, donation, or money received or paid to it 10 from any other source authorized by law. 11 (d) The Authority shall pay all expenses and make all expenditures from the 12 Fund. 13 (e) (1) The Authority may pledge and charge all or a portion of the receipts of 14 the Fund for the payment of: 15 (i) Debt service on bonds of the Authority; and 16 (ii) All reasonable charges and expenses related to borrowing by the 17 Authority and management of the obligations of the Authority. 18 (2) A pledge made under paragraph (1) of this subsection is effective as 19 provided in § 13–1119 of this subtitle and any applicable resolution of the Authority. 20 (f) The State Treasurer shall: 21 (1) Invest and reinvest the Fund in the same manner as State funds; and 22 (2) Transfer any investment earnings to the credit of the Fund. 23 (g) (1) In this subsection, “Program Open Space funds transferred to the 24 Authority” means the money appropriated to the Fund from Program Open Space funds 25 under § 5–903(a) of the Natural Resources Article. 26 (2) Except as provided in paragraph (3) of this subsection, Program Open 27 Space funds transferred to the Authority may not be used to pay the operating expenses of 28 the Authority, debt service of bonds issued by the Authority, or administrative expenses 29 related to bonds issued by the Authority. 30 4 SENATE BILL 980 (3) (i) Up to [10%] 7% of Program Open Space funds transferred to the 1 Authority may be used to pay the operating expenses of the Authority. 2 (ii) Up to 50% of Program Open Space funds transferred to the 3 Authority may be expended for debt service on bonds issued by the Authority. 4 (iii) For fiscal year 2012 only, an additional $500,000 of Program 5 Open Space funds transferred to the Authority may be used to pay operating expenses in 6 the Department of Planning. 7 Article – Natural Resources 8 5–903. 9 (a) (1) [(i)] Of the funds distributed to Program Open Space under § 13–209 10 of the Tax – Property Article, up to $3,000,000 may be transferred by an appropriation in 11 the State budget, or by an amendment to the State budget under Title 7, Subtitle 2 of the 12 State Finance and Procurement Article, to the Maryland Heritage Areas Authority 13 Financing Fund established under Title 13, Subtitle 11 of the Financial Institutions Article 14 to be used for the purposes provided in that subtitle. 15 [(ii) Of the amount transferred under subparagraph (i) of this 16 paragraph, up to $300,000 may be distributed to the Maryland Historical Trust within the 17 Department of Planning to be awarded as noncapital historic preservation grants.] 18 (2) (i) 1. Of the remaining funds not appropriated under paragraph 19 [(1)(i)] (1) of this subsection: 20 A. One half of the funds shall be used for recreation and open 21 space purposes by the Department and the Historic St. Mary’s City Commission; and 22 B. 20% of the funds or $21,000,000, whichever is greater, 23 shall be appropriated to the Forest and Park Service in the Department to operate State 24 forests and parks. 25 2. Except as otherwise provided in this section, any funds the 26 General Assembly appropriates to the State under this subsection shall be used only for 27 land acquisition projects. 28 (iv) In addition to the $3,000,000 under paragraph [(1)(i)] (1) of this 29 subsection that may be transferred to the Maryland Heritage Areas Authority Financing 30 Fund, up to [$3,000,000] $9,000,000 of the State’s share of funds available under 31 subparagraph (i)1A of this paragraph may be transferred by an appropriation in the State 32 budget or by an amendment to the State budget under Title 7, Subtitle 2 of the State 33 Finance and Procurement Article to the Maryland Heritage Areas Authority Financing 34 SENATE BILL 980 5 Fund established under Title 13, Subtitle 11 of the Financial Institutions Article to be used 1 for the purposes provided in that subtitle. 2 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effec t July 3 1, 2025. 4