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HB 1022

Selection of candidate for lieutenant governor.

2026 Regular Session Introduced by Danny Lopez

HB 1022 blocks DNR from using federal funds for oyster restoration in Maryland waters from 7/1/2025 through 6/30/2030, except inside five sanctuaries, shifting work to state funds.

First reading: referred to Committee on Elections and Apportionment
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Bill Summary · HB 1022

Note: the source packet includes unrelated bill texts from other states. The summary below covers the Maryland House Bill 1022 (Environment & Transportation) titled “Oyster Restoration – Use of Federal Funds – Prohibition.”

Summary

Purpose and intent

HB 1022 prohibits the Maryland Department of Natural Resources (DNR) from using federal funds for oyster restoration projects in State waters for a limited period, while preserving the statutory five tributary-scale oyster sanctuaries already established for large‑scale restoration. The stated intent is to restrict the use of federal grant money for oyster restoration outside those five sanctuaries from mid‑2025 through mid‑2030.

Key provisions

  • Prohibition: Except for projects inside the five tributary-scale oyster sanctuaries identified under Maryland law (Harris Creek, Little Choptank River, Tred Avon River, St. Mary’s River, Manokin River), the DNR “may not use federal funds for oyster restoration projects in State waters” from July 1, 2025, through June 30, 2030.
  • Statutory placement: Adds §4‑1016 to the Natural Resources Article; references and preserves the statutory sanctuaries listed at §4‑1014.
  • Sunset: The restriction is expressly time‑limited and terminates automatically June 30, 2030.
  • Effective date / enactment: The bill was enacted and signed by the Governor (recorded May 29, 2025). Legislative records indicate an overall effective date of September 1, 2025; the statutory prohibition window is July 1, 2025–June 30, 2030.

Who is affected

  • Department of Natural Resources (DNR): barred from applying federal funds to oyster restoration in most State waters during the covered period.
  • Federal grant programs and grantees: NOAA and other funders cannot be used by DNR for these projects in State waters except within the five named sanctuaries.
  • Restoration contractors and marine service providers: potential reduction in federally funded reef construction and related work.
  • Oyster hatchery operators and research partners (e.g., Horn Point Laboratory): DNR’s use of federal hatchery grants is expected to be limited, with possible State general‑fund substitution.
  • Commercial oyster harvesters and aquaculture businesses: may experience indirect effects depending on changes in restoration activity and habitat outcomes.

Fiscal and administrative impacts

The Department of Legislative Services (DLS) fiscal note estimates:
- Loss/foregone federal fund revenue and expenditures beginning FY2025, chiefly from a foregone $10.0 million NOAA reef construction grant (DLS assumes most of the grant would be foregone).
- Specific estimated changes: federal fund revenue decreases roughly $24,000 (FY2025), $9.4 million (FY2026), $952,000 (FY2027), $24,000 (FY2028). General fund expenditures could increase by about $400,000 in FY2026 to partially replace federal hatchery funding.
- Net State effect shown as a ~$400,000 cost in FY2026 (others indeterminate).
- Local governments: no direct fiscal effect reported.
- Small businesses: DLS notes potential meaningful impacts for small commercial harvesters and marine contractors.

Timing and procedure

  • Prohibition period in statute: July 1, 2025 – June 30, 2030 (sunset automatically on June 30, 2030).
  • Enacted and signed by the Governor (May 29, 2025); legislative records show effectiveness beginning September 1, 2025.
  • DNR retains authority to continue federally funded work inside the five legislated sanctuaries.

Bottom line

HB 1022 temporarily blocks DNR’s use of federal funds for oyster restoration in Maryland State waters outside the five legislated tributary sanctuaries for five years. The policy shifts some restoration funding decisions from federally financed projects to either suspended activity or potential State general‑fund replacement, with measurable near‑term fiscal and market effects for restoration programs, hatchery operations, contractors, and commercial oyster interests.

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

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