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SB 980

Natural Resources - Maryland Heritage Areas Authority - Funding and Grants

2025 Regular Session Introduced by Paul Corderman and 1 co-sponsor

SB 980 shifts more POS funds to MHAA, allows grants up to 80% of project costs with a $300,000 per-grant cap, and expands eligible activities to include managing certified heritage

Vetoed by the Governor (Policy)
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Bill Summary · SB 980

SB 980 — Natural Resources: Maryland Heritage Areas Authority — Funding and Grants

Status: Vetoed by the Governor (Policy) — veto issued 2025-05-16
Introduced: January 28, 2025 (Sen. Corderman). Effective date (if enacted): July 1, 2025. Companion bills: HB 1327, HB 1371, HB 426.

Purpose / Intent

To change how Program Open Space (POS) funds may be transferred to and used by the Maryland Heritage Areas Authority (MHAA), expand the Authority’s eligible uses, and alter grant size/eligibility rules to increase the share of project costs MHAA grants may cover.

Key provisions (substantive changes)

  • Increased transfers to the MHAA Financing Fund:
    • Raises the State-share transfer cap from up to $3.0 million to up to $9.0 million, increasing the total POS funding potentially transferred to MHAA from up to $6.0 million to up to $12.0 million annually (when combined with the existing, separate $3.0 million pre-allocation).
  • Operating expense limit:
    • Reduces the allowable share of transferred POS funds that MHAA may use for operating expenses from up to 10% to up to 7% or $600,000, whichever is greater.
  • Repeals a prior authorization that allowed up to $300,000 of the POS transfer to be distributed to the Maryland Historical Trust (MHT) for noncapital historic preservation grants.
  • Grant ceilings and cost-share changes:
    • Caps acquisition/development grants and program grants at $300,000 maximum per grant.
    • Raises the maximum percent of project (or plan) cost MHAA grants may cover from 50% to up to 80% (applies to acquisition/development, program grants, and management plan grants).
  • Eligible activities:
    • Explicitly adds “management of certified heritage areas” to the list of activities for which MHAA may award grants and loans.
  • Technical and statutory amendments to Articles (Financial Institutions; Natural Resources) consistent with the above.

Who would be affected

  • Maryland Heritage Areas Authority (MHAA): increased funding flexibility, larger cost-share authority, new explicit eligibility for management funding, modest change to operating expense rules.
  • Maryland Historical Trust (MHT): loss of a statutory authorization for up to $300,000 in POS-derived noncapital grants.
  • Certified heritage areas, local governments, and non‑profit or private entities that apply for MHAA grants: potential access to larger percentage funding (up to 80%) but subject to a $300,000 per‑grant cap.
  • Local governments and small businesses: potential increases in local projects, preservation activity, and related contracting opportunities; fiscal note flags a potential meaningful effect for small businesses.
  • State agencies (DNR, Department of Planning, State Treasurer): administrative and budgeting implications related to POS transfers and Fund management.

Fiscal and implementation notes

  • Fiscal note (Maryland Department of Legislative Services):
    • No expected net effect on overall State finances, but the bill could require hiring additional personnel (to be funded from transferred funds).
    • Local government revenues/expenditures may increase beginning in FY 2026.
    • Reallocates how POS funds are used (more to MHAA and less, in practice, to the $300k MHT authorization).
  • Effective date (as drafted): July 1, 2025.

Procedural history (selected)

  • Introduced Jan 28, 2025; reported favorable with amendments by Budget & Taxation; passed Senate (second & third readings) in March–April 2025; recorded as vetoed by the Governor on May 16, 2025.

Practical effect (summary)

If enacted, SB 980 would shift more POS resources toward MHAA-managed heritage-area projects and allow MHAA to cover a larger share of project costs (up to 80%) while imposing a per‑grant dollar cap ($300,000). It would also prioritize MHAA management activities and remove a small, earmarked grant authorization to MHT. The net statewide fiscal impact is expected to be neutral, but distributional effects (which projects or localities receive funding) and administrative impacts would change; however, the bill was vetoed by the Governor.

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

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