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WES MOORE, Governor Ch. 277
Chapter 277
(Senate Bill 638)
AN ACT concerning
Natural Resources – Maryland Heritage Areas Authority – Funding and Grants
FOR the purpose of authorizing the Maryland Heritage Areas Authority to award certain
grants and loans to certain entities for the management of certified heritage areas
under certain circumstances; repealing limits on the percentage of project costs that
may be covered by certain grants made by the Authority for certain purposes in a
certain manner; repealing certain requirements for certain grants and loans;
decreasing the percentage of Program Open Space funds transferred to the Maryland
Heritage Areas Authority Financing Fund that may be used for certain operating
expenses; repealing a provision of law authorizing the distribution of certain money
to the Maryland Historical Trust; increasing the maximum amount of certain
funding available to the State that may be transferred to the Maryland Heritage
Areas Authority Financing Fund; and generally relating to the Maryland Heritage
Areas Authority.
BY repealing and reenacting, with amendments,
Article – Financial Institutions
Section 13–1113 and 13–1114
Annotated Code of Maryland
(2020 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, without amendments,
Article – Natural Resources
Section 5–903(a)(1) and (2)(i)
Annotated Code of Maryland
(2023 Replacement Volume and 2025 Supplement)
BY repealing and reenacting, with amendments,
Article – Natural Resources
Section 5–903(a)(1) and (2)(i) and (iv) Section 5–903(a)(2)(iv)
Annotated Code of Maryland
(2023 Replacement Volume and 2025 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Financial Institutions
13–1113.
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Ch. 277 2026 LAWS OF MARYLAND
(a) As provided in the State budget AND SUBJECT TO SUBSECTION (D) OF THIS
SECTION IN ACCORDANCE WITH TERMS AND CONDITIONS THE AUTHORITY
ESTABLISHES, the Authority may award:
(1) Grants and loans to local jurisdictions or other appropriate entities for
planning, design, acquisition, development, preservation, restoration, interpretation,
marketing, [and] programming, AND MANAGEMENT of certified heritage areas; and
(2) Grants to local jurisdictions or other appropriate entities to develop:
(I) DEVELOP management plans in recognized heritage areas; AND
(II) ENCOURAGE REVITALIZATION OF AND REINVESTMENT IN
CERTIFIED HERITAGE AREA RESOURCES.
(B) IN AWARDING A GRANT OR LOAN UNDER SUBSECTION (A) OF THIS
SECTION, THE AUTHORITY MAY REQUIRE MATCHING FUNDS IN WHATEVER
PROPORTION THE AUTHORITY CONSIDERS APPROPRIATE.
(b) [A grant to develop a management plan may not exceed 50% of the cost of the
management plan.
(c)] An acquisition or development grant[:
(1) May] MAY not be used for any purpose other than implementation of
the certified heritage area in conformity with the approved management plan[; and
(2) May not exceed 50% of the total project cost for which the grant is
awarded].
[(d)] (C) [(1) Subject to paragraph (2) of this subsection, the] THE Authority
may make program grants to local jurisdictions and other appropriate entities:
[(i)] (1) To develop and present interpretive exhibits, materials or
other appropriate products to further the educational and recreational objectives of the
certified heritage areas program; and
[(ii)] (2) To encourage revitalization of, and reinvestment in,
certified heritage area resources.
[(2) A program grant made by the Authority under paragraph (1) of this
subsection may not exceed 50% of the estimated project cost.]
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WES MOORE, Governor Ch. 277
[(e)] (D) (C) Through the resources of the members of the Authority and in
cooperation with other State agencies, the Authority shall provide technical assistance to
management entities implementing a management plan.
13–1114.
(a) There is a Maryland Heritage Areas Authority Financing Fund.
(b) (1) The Authority shall use the Fund as a continuing, nonlapsing, revolving
fund for carrying out the purposes of this subtitle.
(2) No part of the Fund may revert or be credited to the General Fund or
to any other special fund of the State.
(c) The Authority shall place all of the following receipts in the Fund:
(1) Proceeds from the sale of bonds;
(2) Revenues that the Authority collects or receives from any source under
this subtitle; and
(3) Any additional revenue, gift, donation, or money received or paid to it
from any other source authorized by law.
(d) The Authority shall pay all expenses and make all expenditures from the
Fund.
(e) (1) The Authority may pledge and charge all or a portion of the receipts of
the Fund for the payment of:
(i) Debt service on bonds of the Authority; and
(ii) All reasonable charges and expenses related to borrowing by the
Authority and management of the obligations of the Authority.
(2) A pledge made under paragraph (1) of this subsection is effective as
provided in § 13–1119 of this subtitle and any applicable resolution of the Authority.
(f) The State Treasurer shall:
(1) Invest and reinvest the Fund in the same manner as State funds; and
(2) Transfer any investment earnings to the credit of the Fund.
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Ch. 277 2026 LAWS OF MARYLAND
(g) (1) In this subsection, “Program Open Space funds transferred to the
Authority” means the money appropriated to the Fund from Program Open Space funds
under § 5–903(a) of the Natural Resources Article.
(2) Except as provided in paragraph (3) of this subsection, Program Open
Space funds transferred to the Authority may not be used to pay the operating expenses of
the Authority, debt service of bonds issued by the Authority, or administrative expenses
related to bonds issued by the Authority.
(3) (i) Up to [10%] 7% OR $600,000, WHICHEVER AMOUNT IS
GREATER, of Program Open Space funds transferred to the Authority may be used to pay
the operating expenses of the Authority.
(ii) Up to 50% of Program Open Space funds transferred to the
Authority may be expended for debt service on bonds issued by the Authority.
(iii) For fiscal year 2012 only, an additional $500,000 of Program
Open Space funds transferred to the Authority may be used to pay operating expenses in
the Department of Planning.
(iv) For fiscal year 2026 only, an additional $340,000 of Program
Open Space funds transferred to the Authority may be used to pay operating expenses in
the Department of Planning.
Article – Natural Resources
5–903.
(a) (1) [(i)] Of the funds distributed to Program Open Space under § 13–209
of the Tax – Property Article, up to $3,000,000 may be transferred by an appropriation in
the State budget, or by an amendment to the State budget under Title 7, Subtitle 2 of the
State Finance and Procurement Article, to the Maryland Heritage Areas Authority
Financing Fund established under Title 13, Subtitle 11 of the Financial Institutions Article
to be used for the purposes provided in that subtitle.
[(ii) Of the amount transferred under subparagraph (i) of this
paragraph, up to $300,000 may be distributed to the Maryland Historical Trust within the
Department of Planning to be awarded as noncapital historic preservation grants.]
(2) (i) 1. Of the remaining funds not appropriated under paragraph
[(1)(i)] (1) of this subsection:
A. One half of the funds shall be used for recreation and open
space purposes by the Department and the Historic St. Mary’s City Commission; and
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WES MOORE, Governor Ch. 277
B. 20% of the funds or $21,000,000, whichever is greater,
shall be appropriated to the Forest and Park Service in the Department to operate State
forests and parks.
2. Except as otherwise provided in this section, any funds the
General Assembly appropriates to the State under this subsection shall be used only for
land acquisition projects.
(iv) In addition to the $3,000,000 under paragraph [(1)(i)] (1) of this
subsection that may be transferred to the Maryland Heritage Areas Authority Financing
Fund, up to [$3,000,000] $9,000,000 of the State’s share of funds available under
subparagraph (i)1A of this paragraph may be transferred by an appropriation in the State
budget or by an amendment to the State budget under Title 7, Subtitle 2 of the State
Finance and Procurement Article to the Maryland Heritage Areas Authority Financing
Fund established under Title 13, Subtitle 11 of the Financial Institutions Article to be used
for the purposes provided in that subtitle.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026.
Approved by the Governor, April 28, 2026.
–5–Every fact on this page links to its source, starting with the official bill record.