In this subtitle the following words have the meanings indicated. “Department” means the Department of Natural Resources. “Grant Fund” means the Land Trust Grant Fund established under § 3-2A-02 of this subtitle. “Land trust” means a qualified conservation organization that: Is a qualified organization under § 170(h)(3) of the Internal Revenue Code and regulations adopted under § 170(h)(3); and Has executed a cooperative agreement with the Maryland Environmental Trust. “Trust” means the Maryland Environmental Trust.

There is within the Department a Land Trust Grant Fund. The Grant Fund shall be used as a nonlapsing revolving fund to make grants to land trusts in the State. The Grant Fund may be used only to encourage the preservation and protection of open space and natural areas in the State. When deemed appropriate by the Trust, grants from the Grant Fund to land trusts shall be reimbursable to the Grant Fund, subject to § 3–2A–08 of this subtitle. The Maryland Environmental Trust shall administer the Grant Fund. In addition to their other powers and duties under this title, the trustees of the Trust may take any action necessary or proper to administer the Grant Fund. Funds shall be included in the Department’s annual budget for the costs of administering the Grant Fund.

All receipts designated for the Grant Fund shall be placed in the Grant Fund held by the Department and administered by the Trust, including: Money appropriated by the State to the Grant Fund; Premiums, fees, and payments on reimbursement of grants, where required; Income from investments that the State Treasurer, on instruction of the Department, makes for the Department under this subtitle; and Any other money made available to the Grant Fund. Any unspent money in the Grant Fund at the end of the fiscal year shall remain in the Grant Fund and may not revert to the General Fund of the State.

If, at any time, the amount of money in the Grant Fund exceeds the amount that the Trust considers necessary currently to meet its expenses and obligations, the Department shall deposit the excess money with the State Treasurer, who shall invest the money in the manner provided for by law. Annually, the State Treasurer shall report to the Department as to: The status of the money invested under this subtitle; The market value of the assets in the Grant Fund as of the date of the report; and The interest received from investments for the Grant Fund during the period covered by the report.

Subject to conditions necessary to carry out the purposes and requirements of this subtitle, the Trust, on application by a land trust, may provide a grant to the applicant from the Grant Fund. The Trust may make a grant to an applicant only if: The applicant meets the qualifications required by this subtitle; The grant is to be used only for the acquisition of interests or rights in real property for recreational or preservation purposes; The Department approves the project as being in conformity with the Department’s criteria governing land acquired under a State grant from Program Open Space; The trustees of the Trust approve the grant; and The Board of Public Works approves the grant.

To apply for a grant, an applicant shall submit to the Trust an application in the form that the Trust requires. The application shall include: A detailed description of the proposed acquisition; An itemization of known and estimated costs; The total amount of investment required to acquire the property; The funds available to the applicant without financial assistance from the Trust; The amount of financial assistance sought from the Trust; Information that relates to the financial status of the applicant; and Any other relevant information that the Trust requests.

In making grants under this subtitle, the Trust shall give consideration to: The amount of funds contributed to the project by the land trust as a match against the grant; The amount of funds contributed to the project by parties other than the land trust or the Trust; The natural resource, open space, or recreational value of the project; Geographic distribution; The degree of development pressure in the area; and Whether the grant will be reimbursed to the Land Trust Grant Fund, as provided by § 3-2A-08 of this subtitle. The Trust may not make a grant under this subtitle to a land trust unless the land trust: Contributes an amount not less than 15% of the amount of the grant as a match; or Agrees to resell the property to the Department or a local governing body as provided by § 5-903 or § 5-905 of this article.

A land trust may, with the approval of the Trust, subsequently sell or transfer the acquired property to a third party. As a condition of the grant, the Trust may require the dedication of a conservation easement on or reversionary interest in the property in favor of the Trust. Grants awarded to land trusts under this subtitle may be fully or partially reimbursed to the Land Trust Grant Fund under the general conditions set forth in paragraph (2) of this subsection, to be further specified by the Trust in the grant conditions. When land or an interest in land is acquired by the land trust with a grant under this subtitle, on resale of the property a proportion of the money from the resale shall be repaid to the Land Trust Grant Fund as may be provided in the grant conditions.

Except as provided in this subtitle, the Trust may set the terms and conditions for grants. If the Trust decides to grant money to an applicant, the Trust shall prepare grant documents.

If the Trust approves the application, the Trust shall recommend to the Board of Public Works approval of the grant. The Board of Public Works may approve the grant conditional on modifying its terms.

If an applicant violates any provision of the grant documents or ceases to meet the requirements of this subtitle, on reasonable notice to the applicant, the Trust may exercise any remedy for which the grant documents provide.

A person may not knowingly make or cause to be made any false statement or report, including any understatement or overstatement of financial condition for a new grant or affecting a grant already made under this subtitle: In any application or in any document furnished to the Trust; or For the purpose of influencing the action of the Trust on an application for financial assistance or for the purpose of influencing any action of the Trust affecting financial assistance whether or not such assistance may have already been extended. Any person or any aider or abettor, who violates any provision of this subtitle, is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $50,000 or imprisonment in the penitentiary not exceeding 5 years or both.

The Department shall adopt any regulations necessary to carry out the purposes of this subtitle.

The Trust shall report on or before September 1 of each year to the Governor, the budget committees of the General Assembly, and the Department of Legislative Services on the status of the Grant Fund as of the end of the previous fiscal year. The Trust’s report shall include: The total amounts of funds expended; The total amounts of funds committed; The total amounts of funds remaining; A list of projects for which funds have been expended or are committed; A projection of projects in the near future for which grants will be made; An assessment of which grants are expected to be fully or partially reimbursable to the Grant Fund; An evaluation of the program’s effectiveness; and Projections as to future funding needs.