In this subtitle, “real or personal property” includes: the inland waters of the State and the land under those waters; the waters of the Atlantic Ocean for 3 miles from the low watermark of the coast of the State bordering on that ocean and the land under those waters; and any legal or equitable rights, interests, privileges, or easements in, to, or over any real or personal property.

This subtitle does not apply to the transfer or disposal of excess personal property or surplus personal property under Title 4, Subtitle 5 of this article.

This subtitle does not apply to: the release of a lot subject to an agricultural land preservation easement under § 2–513 of the Agriculture Article; or the sale, transfer, exchange, lease, or other disposition of real property held by the Maryland Agricultural Land Preservation Foundation under the Critical Farms Program under § 2–517 of the Agriculture Article.

Notwithstanding any other section of this subtitle, the Department of Natural Resources may dispose of any existing structure on any property acquired by the State for the use of the Department if the structure is valued at $2,500 or less. Before the Department of Natural Resources disposes of any structure under this section, the Department shall give public notice in a newspaper of general circulation in the county in which the structure is located. The proceeds of the sale shall be credited to the Natural Resources Property Maintenance Fund.

This section does not apply to: property that is pledged to secure the payment of principal of or interest on revenue bonds; or real property that is owned or controlled by the State Highway Administration, unless the property is being transferred to the Maryland Transportation Authority or to another unit in the Department of Transportation. The Board may transfer any property, and all rights of physical custody and control over the property, from a unit of the Executive Branch of the State government to another unit of the Executive Branch of the State government. Any property transferred under this subsection is exempt from the appraisal requirements under § 10–305(b)(2)(i) of this subtitle. Any property transferred under this subsection is subject to the continuing general jurisdiction of the Board.

Subject to subsections (b) and (c) of this section, any real or personal property of the State or a unit of the State government may be sold, leased, transferred, exchanged, granted, or otherwise disposed of: to any person, to the United States or any of its units, or to any unit of the State government, for a consideration the Board decides is adequate; or to any county or municipal corporation in the State subject to any conditions the Board imposes. Except as provided under subparagraph (ii) of this paragraph, this subsection applies to the sale, transfer, grant, or exchange of: real property identified under § 5–310(c)(1) of this article; and State–owned real or personal property, funded in accordance with an appropriation act of the General Assembly, that has an appraised value over $100,000. This subsection does not apply to the following dispositions of property identified in subparagraph (i) of this paragraph: leasing the property; the sale, transfer, grant, or exchange of a corrective or access easement on the property; or an exchange by the Department of Natural Resources under § 1–109(e)(3) of the Natural Resources Article. The Board may not approve the sale, transfer, exchange, or grant of property until: the Department of General Services or the Department of Natural Resources under Title 1, Subtitle 1 of the Natural Resources Article has submitted to the Board two independent appraisals of the property that: with regard to real property, consider the value of any restrictive covenant that may be placed on the property; and may not be publicly disclosed if the property is to be sold at auction; the following information has been submitted, by electronic mail or facsimile and by certified mail, to the Senate Budget and Taxation Committee, the House Appropriations Committee, and, for property that meets both criteria of paragraph (1)(i) of this subsection, the Legislative Policy Committee: a description of the property; and if applicable, any justification for not selling, transferring, exchanging, or granting the property in a manner that generates the highest return for the State; 45 days have elapsed since: the information required by item (ii) of this paragraph was received by the appropriate committees; and the Board declared the property surplus; and except for property sold under paragraph (4) of this subsection, for property that meets both criteria under paragraph (1)(i) of this subsection and for which the Board intends to approve a fee simple sale, transfer, exchange, or grant, the General Assembly has approved the proposed disposition as provided under paragraph (3) of this subsection. Within 45 days after receiving the information submitted under paragraph (2) of this subsection, the Legislative Policy Committee shall: review the information and the public record created by the Department of Planning for the property; and approve the proposed disposition of the surplus property and refer the property back to the Board for final disposition; or refer the proposed disposition of the property to the full General Assembly and notify the Board of the referral. If the Legislative Policy Committee fails to take any action under subparagraph (i)2 of this paragraph within the specified time period, the proposed disposition shall be deemed approved by the Committee. If the proposed disposition of the surplus property is referred by the Legislative Policy Committee to the full General Assembly, the proposed disposition may not be approved by the Board unless it is approved by the passage of legislation during the next legislative session of the General Assembly. In any legislation passed in accordance with subsubparagraph 1 of this subparagraph, the General Assembly may approve the proposed disposition with or without conditions. If the Board has declared the property surplus, the Board shall sell the property to the federal government, a local government, or a unit of federal or local government for $1.00, if: the government or unit has indicated its interest in acquiring the land; and a restrictive covenant is placed on the deed of transfer, in accordance with § 5–906(e)(7) and (8) of the Natural Resources Article, that requires the property to be maintained in a use that is consistent with its use at the time of transfer. Any revenues derived from the sale, transfer, exchange, or grant of property identified under paragraph (1)(i)1 of this subsection shall be deposited in the Advance Option and Purchase Fund under § 5–904(b) of the Natural Resources Article. If the Board has declared the property surplus, the Board shall donate or sell the property determined by the Department of Housing and Community Development to be suitable for use or redevelopment as affordable housing in accordance with a proposal developed under § 2–203 of the Housing and Community Development Article. This subsection does not apply to: property that will be acquired with Program Open Space funds under Title 5, Subtitle 9 of the Natural Resources Article; property that will be acquired with Rural Legacy Program funds under Title 5, Subtitle 9A of the Natural Resources Article; property that will be acquired with Local Land Preservation Program funds under Title 5, Subtitle 9B of the Natural Resources Article; property that will be acquired with Community Parks and Playgrounds Program funds under Title 5, Subtitle 9C of the Natural Resources Article; property that will be acquired with funds from the Heritage Conservation Fund under Title 5, Subtitle 15 of the Natural Resources Article; property that will be acquired with funds from the Forest and Park Reserve Fund established under § 5–212 of the Natural Resources Article; property that will be acquired with federal grant funds made available to the Department of Natural Resources for open space, recreation, or conservation purposes; property that will be acquired by the Maryland Environmental Trust; a Maryland Agricultural Land Preservation Foundation easement acquired under § 2–504 of the Agriculture Article; federally owned military property; property that will be acquired by the Maryland Aviation Administration; or property that will be acquired by the Maryland Port Administration. The Board may not approve the acquisition of real property with an appraised value of at least $500,000 or a new lease, or the execution of a renewal option of 10 years or more, of real property that will be used by the State that requires the State to make payments totaling at least $1,000,000 annually unless the Board has provided to the Legislative Policy Committee: a justification for the planned acquisition or lease that includes justification for: real estate terms of time or cost in excess of ordinary and regular State contract terms; rent escalation rates in excess of market rates; removal of any standard real estate provisions, including the right to terminate the lease or transaction; and why the transaction is in the best interest of the State; a cost–benefit analysis of the planned acquisition or lease that includes, when applicable, comparing similar or comparable properties and purchase options, including a comparison of lease options with purchase options, lease consolidation options, and if relevant, an analysis of State agency parking needs and costs, and tax credits or other State benefits granted to the landlord or for the location or real estate transaction; if applicable, a justification for noncompetitive procurement; and on request of the cochairs of the Legislative Policy Committee made within 14 days after receiving the justification under items (i) through (iii) of this paragraph at least 45 days to review the information provided under this paragraph and comment on the planned acquisition before the acquisition is approved. If the acquisition of real property with an appraised value of at least $500,000 from the federal government would require the State to provide ongoing maintenance of the property, the Board may not approve the acquisition until the Board has provided to the Legislative Policy Committee: notice that the acquisition would require the State to provide ongoing maintenance of the property; and on request of the cochairs of the Legislative Policy Committee within 14 days after receiving the notice provided under item (i) of this paragraph, a study regarding the ongoing fiscal impact the acquisition would have on the State, including any environmental mitigation that may be required. Except as otherwise provided in this section: if any real or personal property disposed of under this section is not under the jurisdiction or control of any particular unit of the State government, the deed, lease, or other evidence of conveyance of the real or personal property shall be executed by the Board; and if any real or personal property disposed of under this section is under the jurisdiction or control of a unit of the State government, the deed, lease, or other evidence of conveyance of the real or personal property shall be executed by the highest official of the unit and by the Board. Whenever any unit of the State government leases any State–owned property under its jurisdiction and control to any State employee, agent, or servant, or to any other individual in State service, for the purpose of permitting the individual to maintain a residence on or in the property, the lease shall be: executed by the unit; and approved by the Secretary of General Services. The lease is not valid unless the Secretary of General Services approves it. Whenever any unit of the State government leases any State–owned property under its jurisdiction and control to any lessee, the lease shall include a provision which prohibits the lessee from assigning or subleasing that property without the prior approval of the Board of Public Works. Whenever the State Highway Administration leases any State–owned property under its jurisdiction and control to any person, the Administrator of the State Highway Administration may execute the lease if: the lease is entered into on a 30–day renewable basis; and the duration of the tenancy does not exceed 1 year. At least twice each year, the Administrator of the State Highway Administration shall submit a report of the leases executed under the authority granted in subparagraph (i) of this paragraph to the Board of Public Works. Whenever the Department of Natural Resources leases any State–owned property under its jurisdiction and control to any lessee, the lease shall include a provision that requires the lessee to: maintain unobstructed access to trail heads by trail users and first responders; and ensure that the trail heads remain free of obstructions at all times. At least once each year, the Secretary of Natural Resources shall submit a report of all leases executed by the Department of Natural Resources to the Department of General Services. On the sale, lease, transfer, exchange, or other disposition of any real or personal property owned or controlled by the State Retirement and Pension System or the State of Maryland for the use of the Board of Trustees of the State Retirement and Pension System, any conveyancing document shall be executed in the manner provided in Division II of the State Personnel and Pensions Article. Any sale, lease, transfer, exchange or other disposition of any real or personal property owned or controlled by the State Retirement and Pension System or the State of Maryland for the use of the Board of Trustees of the State Retirement and Pension System by a conveyancing document executed by or for the Board of Trustees of the State Retirement and Pension System before October 1, 1994 in the manner provided under former Article 73B is ratified and confirmed. All conveyances under this section shall be made in the name of the State of Maryland, acting through the executing authority provided for in this section. This section does not apply to any lease or other temporary transfer, grant, or disposition of State real or personal property in connection with a procurement made subject to § 11–202(3) of this article. The Department of Budget and Management and Department of General Services, with the approval of the Board, shall adopt regulations in accordance with Title 10, Subtitle 1 of the State Government Article to implement the provisions of this section. The Board may not approve the sale, transfer, exchange, or grant of a property located between the East 21st and East 22nd blocks of Guilford Avenue in Baltimore unless the Department of General Services demonstrates to the Board that: the Department engaged the community and relevant stakeholders when making the decision to sell, transfer, exchange, or grant the property; and if practicable, the Department prioritized the community’s preferred outcome.

In this section, “capital asset” means an asset of a substantial permanent nature. If the consideration received for the disposition of any real or personal property of the State or any unit of the State government is other real or personal property, the real or personal property received shall be held and accounted for in the same manner as other property under the jurisdiction and control of the unit of the State government that receives the real or personal property. Except as provided in paragraphs (2) and (3) of this subsection, if cash is received as consideration for the disposition of a capital asset of the State or any unit of the State government, the cash shall be applied to the State Annuity Bond Fund Account for the payment of the principal of and interest on the bonded indebtedness of the State. If the capital asset is real property that is being leased or sold to a private party for the purpose of realizing a transit–oriented development as defined under § 7–101 of the Transportation Article, at the discretion of the State agency that is disposing of the property, all or a portion of the cash proceeds resulting from the transaction shall be deposited in: the Baltimore City Community Enhancement Transit–Oriented Development Fund established under Title 15 of the Economic Development Article for the purposes of that Fund; or the Transit–Oriented Development Capital Grant and Revolving Loan Fund established under Title 7 of the Transportation Article for the purposes of that Fund. If cash is received as consideration for the disposition of a capital asset, and if the capital asset was originally purchased with special funds, the cash shall be applied to the special fund. Notwithstanding subparagraph (i) of this paragraph, cash received as consideration for the disposition of helicopters, auxiliary helicopter equipment, ground support equipment, or other capital equipment related to helicopters shall be applied to the State Annuity Bond Fund Account for the payment of the principal of and interest on the bonded indebtedness of the State. If cash is received as consideration for the disposition of any real or personal property of the State or any unit of the State government, other than a capital asset, the cash shall be accounted for and paid into the State Treasury.

In this section, “geothermal resources” has the meaning stated in § 5-601 of the Environment Article. Subject to any conditions the Board and the Department of Natural Resources impose, geothermal resources located on real property owned by the State may be sold, leased, transferred, exchanged, granted, or otherwise disposed of to any person for a consideration the Board decides is adequate.

In this section, “minority business enterprise” has the meaning stated in Title 14, Subtitle 3 of this article. Each unit of the State government that leases State-owned property to business entities shall adopt regulations that establish procedures for awarding the leases. The procedures shall be structured to try to achieve participation by minority business enterprises in: 10% of the total dollar amount of the leases; and 10% of the total number of leases.

In this section the following words have the meanings indicated. “Perpetual care” means the maintenance, including the cutting of grass abutting memorials or monuments, administration, supervision, and embellishments of a cemetery and its grounds, roads, and paths. “Perpetual care” includes the repair and renewal of buildings, including columbaria and mausoleums, and the property of the cemetery. “State facility” means: a facility maintained by the Behavioral Health Administration of the Maryland Department of Health and listed in § 10–406 of the Health – General Article; a State residential center for individuals with an intellectual disability in the Developmental Disabilities Administration of the Maryland Department of Health; and a facility that formerly met the definition of “State facility” under item (i) or (ii) of this subsection, including: the former Rosewood Center; and the former Crownsville Hospital Center. A cemetery owned by the State and located on the grounds of a State facility may not be sold by the State if the State facility is downsized, consolidated, closed, or sold. A cemetery owned by the State and located on the grounds of a State facility shall be provided perpetual care and marked with a monument commemorating the individuals interred in the cemetery. Activities or projects undertaken under subsection (c) of this section shall be undertaken in consultation with the Maryland Historical Trust, in accordance with the consultation provisions: for capital projects under § 5A–325 of this article; and for issuance of permits or licenses or provision of financial assistance under § 5A–326(d)(2) of this article. Any easement or right of entry to a cemetery owned by the State and located on the grounds of a State facility that has been recorded among the land records of the county where the cemetery is located on or before October 1, 2004 may not be transferred or sold. Notwithstanding subsections (b) and (e) of this section, a cemetery or an easement or right of entry to a cemetery owned by the State and located on the grounds of a State facility may be sold by the State if the deed for the property includes a restrictive covenant requiring the owner and any future owner to maintain the cemetery as provided under subsection (c) of this section. The provisions of § 5–502 of the Business Regulation Article apply to a cemetery owned by the State and located on the grounds of a State facility. Beginning January 1, 2015, and on or before January 1 of each succeeding year, the Maryland Department of Health shall report, in accordance with § 2–1257 of the State Government Article, to the Senate Finance Committee and the House Health and Government Operations Committee on the implementation of this section.