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SB 837

Eliminating WV Office of Equal Opportunity

2025 Regular Session Introduced by Patricia Rucker

SB 837 bans DNR from using federal funds for oyster restoration in Maryland state waters from 7/1/2025 through 6/30/2030, except inside five sanctuary areas.

Chapter 130, Acts, Regular Session, 2025
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Bill Summary · SB 837

SB 837 — Oyster Restoration: Prohibition on Use of Federal Funds (Maryland)

Main purpose

SB 837 prohibits the Maryland Department of Natural Resources (DNR) from using federal funds for oyster restoration projects in State waters for a limited period (July 1, 2025 through June 30, 2030). The prohibition excludes oyster restoration work carried out inside the five statutorily established tributary-scale oyster sanctuaries.

Key provisions

  • Adds §4–1016 to the Natural Resources Article:
    • States that the prohibition does not apply to oyster restoration projects located in the five oyster sanctuaries identified under §4–1014.
    • From July 1, 2025 through June 30, 2030 (both dates inclusive), DNR may not use federal funds for oyster restoration projects in State waters (except as above).
  • Effective date: July 1, 2025. The statute sunsets automatically on June 30, 2030.

Scope / exceptions

  • Covered: any oyster restoration projects in State waters funded with federal money, as performed or administered by DNR, during the five‑year window.
  • Not covered: projects within the five named tributary-scale sanctuaries established in statute (Harris Creek; Little Choptank River; Tred Avon River; St. Mary’s River; Manokin River).
  • The bill does not repeal existing sanctuary protections; it only limits federal‑funded restoration outside those sanctuaries for the specified period.

Who would be affected

  • Department of Natural Resources: would be barred from deploying federal grant dollars for most oyster restoration efforts in State waters for five years.
  • Federal grant programs and partners (e.g., NOAA): planned federal funding for State oyster restoration could be foregone or reallocated.
  • Restoration contractors, marine construction firms, hatcheries, and commercial oyster harvesters: could see reduced federal‑funded restoration work, with potential effects on contracts, jobs, and regional oyster stock support.
  • University/Research partners (e.g., hatchery operations): potential impacts if federal hatchery grants are subject to the prohibition.

Fiscal impact (as estimated in the fiscal note)

  • The Department of Legislative Services (analysis of the fiscal note) assumes DNR cannot use a $10.0 million NOAA grant planned for reef construction (Hooper Strait). Assumed impacts include:
    • Federal fund revenues & expenditures decrease by roughly $10.0 million spread across FY2025–FY2028 (example line items in analysis):
    • FY2025 federal revenue: −$24,000
    • FY2026 federal revenue: −$9,400,000
    • FY2027 federal revenue: −$952,000
    • FY2028 federal revenue: −$24,000
    • Hatchery grant impacts: an $800,000/year NOAA hatchery grant may be reduced; the fiscal note assumes at least $400,000 of general funds would be needed in FY2026 to replace lost federal support for hatchery production to maintain operations.
    • Net State effect example: FY2026 net estimated cost −$400,000 (general fund increase to replace some lost federal funds).
  • The fiscal note also flags indeterminate future impacts if other federal grants are foregone during the prohibition period.

Policy and practical considerations

  • The ban is temporary (5 years) and targeted to federal funding only; it does not forbid restoration paid for with State, local, or private funds.
  • By precluding federal funding in many areas, the bill could delay or cancel planned restoration projects that rely on federal grants, potentially affecting oyster reef construction schedules and hatchery outputs.
  • Small businesses tied to restoration (marine contractors, oyster harvesters) may experience meaningful effects depending on how projects and sanctuary boundaries are adjusted.

Procedural / timeline status

  • Introduced: January 28, 2025 (Senate).
  • Assigned to: Senate Education, Energy, and the Environment Committee.
  • Effective date if enacted: July 1, 2025.
  • Sunset: June 30, 2030 (statute abrogates automatically).

Bottom line

SB 837 places a five‑year, targeted prohibition on DNR’s use of federal funds for oyster restoration in Maryland State waters (except within five statutory sanctuaries). The measure is intended to pause federally funded restoration outside those sanctuaries and would have measurable fiscal effects—principally reduced federal revenues/expenditures and potential modest increases in State general fund spending to sustain some hatchery activities.

Compiled from official sources — confirm details with the bill’s official record.

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