In this subtitle the following words have the meanings indicated. “Director” means the Director of the Maryland Historical Trust. “Financial assistance” means action by the State or a State unit to award grants, loans, loan guarantees, or insurance to a public or private entity to finance, wholly or partly, an undertaking. “Governmental unit” means an agency, authority, board, commission, council, office, or other unit or instrumentality of the government of the State or of a political subdivision of the State. “Historic property” means a district, site, building, structure, monument, or object significant to: the prehistory or history of the State; or the upland and underwater archaeology, architecture, engineering, or culture of the State. “Historic property” includes related artifacts, records, and remains. “Nonprofit organization” means a corporation, foundation, or other legal entity, no part of the net earnings of which inures to the benefit of a private shareholder or individual holding an interest in the entity. “Political subdivision” means a county or municipal corporation of the State. “Preservation” or “historic preservation” means the identification, evaluation, recordation, documentation, curation, acquisition, protection, management, rehabilitation, restoration, stabilization, maintenance, and reconstruction of a historic property. “State Historic Preservation Officer” means the individual who administers the State Historic Preservation Program under the National Historic Preservation Act of 1966, 16 U.S.C. §§ 470–470mm. “State unit” has the meaning stated in § 11–101 of the State Government Article. “Submerged” means beneath or substantially beneath water. “Terrestrial” means relating to land above the mean high tide line and above nontidal waters. “Trust” means the Maryland Historical Trust. “Undertaking” means a project that involves or may result in building construction, building alteration, or land disturbance.

The General Assembly finds that: historic properties significant to the State’s heritage are being lost or substantially altered, often inadvertently, with increasing frequency; historic properties are a vital part of our community life and development and cannot be replaced if lost or destroyed; it is in the public interest to preserve the State’s heritage and enrich present and future generations with the cultural, educational, inspirational, social, and economic benefits of the past; increasing knowledge of our historic resources, establishing better means of identifying and administering them, and encouraging their preservation will assist the economic and cultural growth of the State; and the State’s heritage has been enriched by accomplishments and contributions of the State’s private preservation organizations, and their continuing activities are in the public interest.

In this section the following words have the meanings indicated. “Affordable housing” means a project or undertaking that has received an allocation of federal low–income housing tax credits by the Department of Housing and Community Development. “Agricultural structure” means a certified historic structure that is used or was used as an agricultural facility or for purposes related to agriculture. “Business entity” means: a person conducting or operating a trade or business in the State; or an organization operating in Maryland that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code. “Business entity” includes the governing body of a condominium or cooperative housing corporation. “Certified heritage area” has the meaning stated in § 13–1101 of the Financial Institutions Article. “Certified historic structure” means a structure that is located in the State and: is listed in the National Register of Historic Places; is designated as a historic property under local law and determined by the Director to be eligible for listing on the National Register of Historic Places; is located in a historic district listed on the National Register of Historic Places or in a local historic district that the Director determines is eligible for listing on the National Register of Historic Places; and is certified by the Director as contributing to the significance of the district; is located in a certified heritage area and certified by the Maryland Heritage Areas Authority as contributing to the significance of the certified heritage area; or is located on property that is owned by the Department of Natural Resources or one of its units; is occupied by a person under an agreement with the Department of Natural Resources under which the person pays for rehabilitation of the structure as a condition of occupancy; and meets one of the criteria listed under item 1, 2, 3, or 4 of this subparagraph or is eligible to be listed in the National Register of Historic Places as determined by the Director. Except as provided in subparagraph (i)5 of this paragraph, “certified historic structure” does not include a structure that is owned by the State, a political subdivision of the State, or the federal government. “Certified rehabilitation” means a completed rehabilitation of a certified historic structure that the Director certifies is a substantial rehabilitation in conformance with the rehabilitation standards of the United States Secretary of the Interior. “Commercial rehabilitation” means a rehabilitation of a structure other than a single–family, owner–occupied residence. “Commercial rehabilitation” does not include a small commercial project. “Common elements” means: all of the condominium except the units, as defined in § 11–101 of the Real Property Article; or all of the cooperative project except the units, as defined in § 5–6B–01 of the Corporations and Associations Article. “Condominium” has the meaning stated in § 11–101 of the Real Property Article. “Cooperative housing corporation” has the meaning stated in § 5–6B–01 of the Corporations and Associations Article. “Cooperative project” has the meaning stated in § 5–6B–01 of the Corporations and Associations Article. “Director” means the Director of the Maryland Historical Trust. “Financial assistance” means action by the State or a State unit to award grants, loans, loan guarantees, or insurance to a public or private entity to finance, wholly or partly, a project that involves or may result in building construction, building alteration, or land disturbance. “Governing body”, unless the context requires otherwise, has: with respect to a cooperative housing corporation, the meaning stated in § 5–6B–01 of the Corporations and Associations Article; or with respect to a condominium, the meaning stated in § 11–101 of the Real Property Article. “High performance building” means a building that: meets or exceeds the current version of the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) green building rating system gold rating; or achieves at least a comparable numeric rating according to a nationally recognized, accepted, and appropriate numeric sustainable development rating system, guideline, or standard approved by the Secretaries of Budget and Management and General Services under § 3–602.1 of this article. “Historic property” means a district, site, building, structure, monument, or object significant to: the prehistory or history of the State; or the upland or underwater archeology, architecture, engineering, or culture of the State. “Historic property” includes related artifacts, records, and remains. “Level 1 opportunity zone project” means a small commercial project or commercial rehabilitation completed by a qualified opportunity zone business if the following information is provided to the Director: the date of the qualified opportunity fund’s investment in the opportunity zone project and the amount of the investment; the total project or business investment, including any leverage; the address and census tract of the qualified opportunity zone business and the qualified opportunity fund; the North American Industrial Classification System Code for the qualified opportunity zone business; an impact report, including both qualitative and quantitative data on the qualified opportunity fund’s investment in the opportunity zone project and its progress; and any other information requested by the Director. “Level 2 opportunity zone project” means a small commercial project or commercial rehabilitation completed by a qualified opportunity zone business if: the requirements for a Level 1 opportunity zone project are met; accountability to residents of the communities in the qualified opportunity zone is maintained through their representation on any governing board or any advisory board of the qualified opportunity zone business; or a community benefits agreement is negotiated and agreed to by community groups or strategic industry partnerships, as defined under § 11–701 of the Labor and Employment Article, in the opportunity zone and the qualified opportunity zone business that specifies a range of community benefits that the business agrees to provide as part of the development project; and for an opportunity zone project located entirely within a municipal corporation, the municipal corporation, by resolution or by letter, delivered to the Director by the municipal corporation’s authorized designee, approves the provision within the municipal corporation of the enhanced tax credits under this section; or for an opportunity zone project that is not located entirely within a municipal corporation, the county, by resolution or by letter, delivered to the Director by the county’s authorized designee, approves the provision within the county of the enhanced tax credits under this section. “Local historic district” means a district that the governing body of a county or municipal corporation, or the Mayor and City Council of Baltimore, has designated under local law as historic. “National register structure” means a structure that is: listed on the National Register of Historic Places; or located in a historic district listed on the National Register of Historic Places and certified by the Director as contributing to the significance of the district. “Opportunity zone project” means a certified rehabilitation within a geographical area designated and in effect as a qualified opportunity zone in the State under § 1400Z–1 of the Internal Revenue Code. “Political subdivision” means a county or municipal corporation of the State. “Post–World War II structure” means a certified historic structure that was built after December 31, 1944, but before January 1, 1970. “Qualified opportunity fund” has the meaning stated in § 6–1001 of the Economic Development Article. “Qualified opportunity zone” has the meaning stated in § 6–1001 of the Economic Development Article. “Qualified opportunity zone business” has the meaning stated in § 6–1001 of the Economic Development Article. “Qualified rehabilitation expenditure” means any amount that: is properly chargeable to a capital account; is expended in the rehabilitation of a structure that by the end of the calendar year in which the certified rehabilitation is completed is a certified historic structure; is expended in compliance with a plan of proposed rehabilitation that has been approved by the Director; and is not funded, financed, or otherwise reimbursed by any: State or local grant; grant made from the proceeds of tax–exempt bonds issued by the State, a political subdivision of the State, or an instrumentality of the State or of a political subdivision of the State; State tax credit other than the tax credit under this section; or other financial assistance from the State or a political subdivision of the State, other than a loan that must be repaid at an interest rate that is greater than the interest rate on general obligation bonds issued by the State at the most recent bond sale prior to the time the loan is made. “Single–family, owner–occupied residence” means a structure or a portion of a structure occupied by the owner and the owner’s immediate family as their primary or secondary residence. “Single–family, owner–occupied residence” includes: a residential unit in a cooperative project owned by or leased to a cooperative housing corporation and leased for exclusive occupancy to, and occupied by, a member of the corporation and the member’s immediate family under a proprietary lease; a structure that is described under paragraph (6)(i)5 of this subsection; and a small commercial project. “Small commercial project” means a rehabilitation of a structure if: the qualified rehabilitation expenditures do not exceed $500,000; and the structure is primarily used for commercial, income–producing purposes; the structure: is a residential unit in a consecutive series of similar residential units that are arranged in a row, side by side; and is sold as part of a development project for exclusive occupancy to, and occupied by, the resident; the structure is a targeted project; or the structure is a condominium or cooperative project and the rehabilitation targets only the common elements of the condominium or cooperative project. “State unit” has the meaning stated in § 11–101 of the State Government Article. “Substantial rehabilitation” means rehabilitation of a structure for which the qualified rehabilitation expenditures, during the 24–month period selected by the individual or business entity ending with or within the taxable year, exceed: for single–family, owner–occupied residential property, $5,000; or for all other property, the greater of: the adjusted basis of the structure; or $25,000. “Sustainable Growth Subcabinet” means the Sustainable Growth Subcabinet established under Title 9, Subtitle 14 of the State Government Article. “Targeted project” means a rehabilitation of: an agricultural structure; or a post–World War II structure. The Director, in consultation with the Sustainable Growth Subcabinet, shall adopt regulations to: establish procedures and standards for certifying historic structures and rehabilitations under this section; for commercial rehabilitations, establish an application process for the award of initial credit certificates for historic revitalization tax credits consistent with the requirements of this subsection; for commercial rehabilitations, establish criteria, consistent with the requirements of this subsection, for evaluating, comparing, and rating plans of proposed rehabilitation that have been determined by the Director to conform with the rehabilitation standards of the United States Secretary of the Interior; for commercial rehabilitations, establish a competitive award process for the award of initial credit certificates for historic revitalization tax credits that favors the award of tax credits for rehabilitation projects that: are consistent with and promote current growth and development policies and programs of the State; are located in areas targeted by the State for additional revitalization and economic development opportunities due to the focusing of State resources and incentives; are located in areas where the political subdivision has implemented regulatory streamlining or other development incentives that foster redevelopment and revitalization in priority funding areas, as defined in Title 5, Subtitle 7B of this article, and the appropriate local governing body or the planning board or commission, if designated by the local governing body, has certified to the Sustainable Growth Subcabinet those regulatory streamlining or other development incentives; and include affordable and workforce housing options; for commercial rehabilitations, establish procedures to announce to the public the selection of a rehabilitation project for an award of an initial credit certificate not later than 60 days after the selection is made; for commercial rehabilitations, determine whether the certified rehabilitation: is a high performance building; or qualifies as affordable housing or a Level 1 or Level 2 opportunity zone project; for commercial rehabilitations, establish a required external marker or, at a minimum, an internal marker for the rehabilitation project that identifies that the rehabilitation was funded by historic revitalization tax credits; as provided in paragraph (7) of this subsection, charge reasonable fees to certify historic structures and rehabilitations under this subtitle; for commercial rehabilitations, require documentation that the applicant has ownership or site control of the structure in order to demonstrate the ability to meet the requirement to begin work as required under subsection (c)(3)(i)1 of this section; for commercial rehabilitations, provide a time limit for approval of the additional tax credit for high performance buildings, affordable housing, or Level 1 or Level 2 opportunity zone projects provided for in subsection (c)(1)(ii) of this section; for commercial rehabilitations, establish procedures for the transfer of the tax credit under subsection (c)(6) of this section; for small commercial projects: establish conditions regarding the percentage of the structure that may be used for residential rental purposes if the structure is used for both commercial and residential rental purposes; establish application procedures for governing bodies of condominiums and cooperative housing corporations and conditions regarding the rehabilitation of common elements of condominiums and cooperative projects; specify criteria for determining whether a certified historic structure is: an agricultural structure; or a post–World War II structure; and specify criteria and procedures for the issuance of initial credit certificates under subsection (e) of this section; and specify criteria and procedures for approval of enhanced benefits under this section for Level 1 and Level 2 opportunity zone projects. The Director may not certify that a rehabilitation is a certified rehabilitation eligible for a tax credit provided under this section unless the individual or business entity seeking certification states under oath the amount of the individual’s or business entity’s qualified rehabilitation expenditures. Each year, the Director may accept applications for approval of plans of proposed commercial rehabilitations and for the award of initial credit certificates for the fiscal year that begins July 1 of that year. Except as provided in subsection (e) of this section, a small commercial project shall be treated as a single–family, owner–occupied residential property, including the limitation on the amount of the tax credit provided in subsection (c)(2)(ii) of this section. A small commercial project is subject to the credit recapture provision in subsection (f) of this section. For commercial rehabilitations, the Director may not accept an application for approval of plans of proposed rehabilitation if: any substantial part of the proposed rehabilitation work has begun; or the applicant for a commercial rehabilitation has previously submitted three or more applications for commercial rehabilitations with total proposed rehabilitations exceeding $500,000 in that year. For commercial rehabilitations, the Director may accept an application for approval of plans of a proposed rehabilitation for which a substantial part of the proposed rehabilitation work has begun if the rehabilitation work has been approved under the federal historic tax credit. Except as provided in subsection (d)(3)(iii) of this section, not more than 60% of the total credit amounts under initial credit certificates issued for any fiscal year may be issued for projects in a single county or Baltimore City. The Director shall adopt regulations to charge reasonable fees to certify historic structures and rehabilitations under this section which shall include: a minimum fee for the second phase of the application process; for a commercial rehabilitation project, a final fee that may not exceed 3% of the amount of the award of an initial credit certificate; and for any other rehabilitation project, a final fee that may not exceed 3% of the amount of the credit for which the rehabilitation would be eligible based on the greater of the estimated or final qualified rehabilitation expenditures for the rehabilitation. The Director shall set the level of the fees so that the projected proceeds from the fees will cover the costs to the Trust of administering the credit under this section and the federal historic tax credit. If a fee charged for a commercial rehabilitation is not received by the Trust within 90 days after the Trust sends notice to the applicant that the fee is due, the Trust may not: issue an initial credit certificate for the commercial rehabilitation; or accept an application for a commercial rehabilitation from the applicant during the 3 fiscal years following the fiscal year in which the fee was not received. The proceeds from the fees shall be deposited in a special fund, to be used only for the purposes of paying the costs of administering the credit under this section and the federal historic tax credit. Any unused balance of the fund at the end of each fiscal year shall be transferred to the Reserve Fund established under subsection (d) of this section and shall increase the amount of the initial credit certificates that the Trust may issue for the following fiscal year. If an initial credit certificate expires or is otherwise unclaimed as provided for under this section, the amount of the credit certificate shall: remain in the Reserve Fund established under subsection (d) of this section; and increase the amount of the initial credit certificates that the Trust may issue for the following fiscal year. Except as otherwise provided in this section, for the taxable year in which a certified rehabilitation is completed, an individual or business entity may claim a tax credit in an amount equal to 20% of the individual’s or business entity’s qualified rehabilitation expenditures for the rehabilitation. For a commercial rehabilitation, an individual or business entity may claim an additional tax credit in an amount equal to 5% of the individual’s or business entity’s qualified rehabilitation expenditures if the certified rehabilitation is a certified historic structure and: is a high performance building; or qualifies as affordable housing or a Level 1 opportunity zone project. For a commercial rehabilitation, a business entity may claim an additional tax credit in an amount equal to 7.5% of the business entity’s qualified rehabilitation expenditures if the certified rehabilitation is a certified historic structure and qualifies as a Level 2 opportunity zone project. For any commercial rehabilitation, the State tax credit allowed under this section may not exceed the lesser of: $5,000,000 for any commercial rehabilitation other than a Level 1 or Level 2 opportunity zone project; $5,250,000 for a Level 1 opportunity zone project; or $5,500,000 for a Level 2 opportunity zone project; or the maximum amount specified under the initial credit certificate issued for the rehabilitation. For a rehabilitation other than a commercial rehabilitation, the State tax credit allowed under this section may not exceed: $50,000 for a rehabilitation other than a Level 1 or Level 2 opportunity zone project; $55,000 for a Level 1 opportunity zone project; or $60,000 for a Level 2 opportunity zone project. For the purposes of the limitation under subparagraph (i) of this paragraph, the following shall be treated as a single commercial rehabilitation: the phased rehabilitation of the same structure or property; or the separate rehabilitation of different components of the same structure or property. Subject to subparagraph (ii) of this paragraph, the initial credit certificate for a proposed commercial rehabilitation shall expire and the credit under this section may not be claimed if: within 18 months after the initial credit certificate was issued, the applicant has not notified the Trust, in writing, that the commercial rehabilitation has begun; the commercial rehabilitation is not completed within 30 months after the initial credit certificate was issued; or the applicant does not submit to the Trust a request for final certification of the commercial rehabilitation within 12 months after: the 30–month expiration date under item 2 of this subparagraph; or the date to which the Director postponed the expiration date under subparagraph (ii) of this paragraph. For reasonable cause, the Director may postpone: the 30–month expiration date under subparagraph (i)2 of this paragraph for an initial credit certificate for a commercial rehabilitation; or if the commercial rehabilitation was completed prior to the expiration of the initial credit certificate, the deadline under subparagraph (i)3 of this paragraph for submission of a request for final certification. If the tax credit allowed under this section in any taxable year exceeds the total tax otherwise payable by the business entity or the individual for that taxable year, the individual or business entity may claim a refund in the amount of the excess. The State credit allowed under this section may be allocated among the partners, members, or shareholders of an entity in any manner agreed to by those persons in writing. In accordance with regulations adopted by the Director under this section, the amount of the State tax credit allowed but not used for commercial rehabilitations under this section may be transferred in whole or in part to any individual or business entity. For the taxable year of any transfer under this paragraph, the transferee under subparagraph (i) of this paragraph may apply the tax credit against the total tax otherwise payable by the transferee in that taxable year. If the tax credit exceeds the State income tax of the transferee in any taxable year, the transferee: may claim a refund in the amount of the excess; or may transfer the remainder of the tax credit to any individual or business entity. In this subsection the following words have the meanings indicated. “Reserve Fund” means the Historic Revitalization Tax Credit Reserve Fund established under paragraph (2) of this subsection. “Trust Account” means the Small Commercial Project Trust Account established under paragraph (4) of this subsection. There is a Historic Revitalization Tax Credit Reserve Fund that is a continuing, nonlapsing special fund that is not subject to § 7–302 of this article. The money in the Reserve Fund shall be invested and reinvested by the Treasurer, and interest and earnings shall be credited to the General Fund. If the fees paid in any fiscal year are less than the directly related administrative costs of operating the Historic Revitalization Tax Credit Program, funds in the Reserve Fund shall be used for the directly related administrative costs of the Program. Subject to the provisions of this subsection, the Director shall issue an initial credit certificate for each commercial rehabilitation for which a plan of proposed rehabilitation is approved and the fees charged under subsection (b)(7)(i) of this section are paid. An initial credit certificate issued under this subsection shall state the maximum amount of credit under this section for which the commercial rehabilitation may qualify. Except as otherwise provided in this subparagraph and in subsection (b)(7)(v) of this section, for any fiscal year, the Director may not issue initial credit certificates for credit amounts in the aggregate totaling more than the amount appropriated to the Reserve Fund for that fiscal year in the State budget as approved by the General Assembly. If the aggregate credit amounts under initial credit certificates issued in a fiscal year total less than the amount appropriated to the Reserve Fund for that fiscal year as a result of the limitation under subsection (b)(6) of this section, any excess amount may be issued under initial credit certificates for projects in a county or Baltimore City in the same fiscal year, without regard to the limitation under subsection (b)(6) of this section. Subject to subsubparagraph 2 of this subparagraph, if the aggregate credit amounts under initial credit certificates issued in a fiscal year total less than the amount appropriated to the Reserve Fund for that fiscal year, any excess amount shall remain in the Reserve Fund and may be issued under initial credit certificates for the next fiscal year. For any fiscal year, if funds are transferred from the Reserve Fund under the authority of any provision of law other than paragraph (5) of this subsection, the maximum credit amounts in the aggregate for which the Director may issue initial credit certificates shall be reduced by the amount transferred. In each fiscal year, the Director shall estimate the amount of fees to be collected based on the amount appropriated to the Reserve Fund and reserve the difference between the estimated fees and estimated directly related administrative costs of the Program to be used to administer the Program. If the reservation of funds to administer the Program under subsubparagraph 5 of this subparagraph is not necessary to cover the directly related administrative costs of the Program, any excess amount shall remain in the Reserve Fund and may be issued under initial credit certificates for the next fiscal year. Subject to subsubparagraphs 2 and 3 of this subparagraph, for each of fiscal years 2018 through 2031, the Governor shall include in the budget bill an appropriation to the Reserve Fund. For each of fiscal years 2023 through 2025 and 2029 through 2031, the Governor shall include in the budget bill an appropriation to the Reserve Fund of at least $20,000,000. For each of fiscal years 2026 through 2028, the Governor shall include in the budget bill an appropriation to the Reserve Fund of at least $16,500,000. The amounts described under subsubparagraphs 2 and 3 of this subparagraph shall be in addition to the appropriations to the Trust Account required under paragraph (4) of this subsection. Notwithstanding the provisions of § 7–213 of this article, the Governor may not reduce an appropriation for the Reserve Fund in the State budget as approved by the General Assembly. The Director may not issue an initial credit certificate for any fiscal year after fiscal year 2031. Within the Reserve Fund, there is a Small Commercial Project Trust Account. The Trust Account is established for the issuance of tax credit certificates for small commercial projects. Funds in the Trust Account shall be used only for transfers from the Reserve Fund to the General Fund in accordance with paragraph (5) of this subsection with respect to tax credit certificates issued for small commercial projects. The Trust Account consists of: money appropriated in the State budget for the Trust Account; and any other money from any other source accepted for the benefit of the Trust Account. For each of fiscal years 2024 through 2031, the Governor shall include in the budget bill an appropriation to the Trust Account of at least $2,000,000. Except as provided in this paragraph, money appropriated to the Reserve Fund shall remain in the Fund. Within 15 days after the end of each calendar quarter, the Trust shall notify the Comptroller as to each commercial rehabilitation completed and certified during the quarter: the maximum credit amount stated in the initial credit certificate for the project; and the final certified credit amount for the project. On notification that a project has been certified, the Comptroller shall transfer an amount equal to the maximum credit amount stated in the initial credit certificate for the project from the Reserve Fund to the General Fund. On or before October 1 of each year, the Trust shall notify the Comptroller as to the maximum credit amount stated in the initial credit certificate for each commercial rehabilitation for which the initial credit certificate has expired under subsection (c)(3) of this section as of the end of the prior fiscal year. On notification that the initial credit certificate for a project has expired under subsection (c)(3) of this section, the Comptroller shall transfer an amount equal to the maximum credit amount stated in the initial credit certificate for the project from the Reserve Fund to the General Fund. Subject to the provisions of this subsection, the Director shall issue an initial credit certificate for each approved small commercial project on a first–come, first–served basis. An initial credit certificate issued under this subsection shall state the maximum amount of tax credit for which the applicant is eligible. Before fiscal year 2024, the Director may not issue an initial credit certificate under this subsection after the aggregate amount of initial credit certificates issued for small commercial projects totals $5,000,000. Before fiscal year 2024, for a targeted project, the Director may not issue an initial credit certificate under this subsection: after the aggregate amount of initial credit certificates issued for agricultural structures totals $1,000,000; or after the aggregate amount of initial credit certificates issued for post–World War II structures totals $1,000,000. Beginning fiscal year 2024 and each fiscal year thereafter, the Director may not issue initial credit certificates for small commercial projects under this subsection for credit amounts in the aggregate totaling more than the amount of funds in the Small Commercial Project Trust Account established under subsection (d)(4) of this section. In this subsection the following words have the meanings indicated. “Dispose of” means to transfer legal title or, in the case of a leasehold, the leasehold interest. “Dispose of” includes to sell in a sale–and–leaseback transaction, to transfer on the foreclosure of a security interest, or to transfer by gift. “Dispose of” does not include to transfer title or the leasehold interest to a creditor on creation of a security interest. “Disqualifying work” means work that: is performed on a certified rehabilitation; and if performed as part of the rehabilitation certified under this section, would have made the rehabilitation ineligible for certification. The credit allowed under this section shall be recaptured as provided in paragraph (3) of this subsection if, during the taxable year in which a certified rehabilitation is completed or any of the 4 taxable years succeeding the taxable year in which the certified rehabilitation is completed: any disqualifying work is performed on the certified rehabilitation; or for a commercial rehabilitation, the certified rehabilitation is complete and has been disposed of. If the disqualifying work is performed or the certified rehabilitation is disposed of during the taxable year in which the certified rehabilitation was completed, 100% of the credit shall be recaptured. If the disqualifying work is performed or the certified rehabilitation is disposed of during the first full year succeeding the taxable year in which the certified rehabilitation was completed, 80% of the credit shall be recaptured. If the disqualifying work is performed or the certified rehabilitation is disposed of during the second full year succeeding the taxable year in which the certified rehabilitation was completed, 60% of the credit shall be recaptured. If the disqualifying work is performed or the certified rehabilitation is disposed of during the third full year succeeding the taxable year in which the certified rehabilitation was completed, 40% of the credit shall be recaptured. If the disqualifying work is performed or the certified rehabilitation is disposed of during the fourth full year succeeding the taxable year in which the certified rehabilitation was completed, 20% of the credit shall be recaptured. The individual or business entity that claimed the tax credit shall pay the amount to be recaptured as determined under subparagraph (i) of this paragraph as taxes payable to the State for the taxable year in which the disqualifying work is performed or the certified rehabilitation is disposed of. The Comptroller may determine, under the process for return examination and audit under §§ 13–301 and 13–302 of the Tax – General Article: the amount of rehabilitation expenditures used in calculating the credit; whether such expenditures are qualified rehabilitation expenditures under this section; and whether the credit is allowable as claimed. The authority of the Comptroller to examine and audit a tax return does not limit the authority of the Director to determine whether a rehabilitation qualifies as a certified rehabilitation or whether a certificate of certified rehabilitation has been properly issued. The Comptroller may adopt regulations to require that an entity other than a corporation claim the tax credit on the tax return filed by that entity. Except as otherwise provided in this paragraph, the credit under this section may be claimed for the year a certified rehabilitation is completed, only if the Director has, by the time the return is filed, issued a certificate of completion for the certified rehabilitation. A taxpayer claiming the credit may amend a return for the year the certified rehabilitation was completed to account for a certificate issued subsequent to the filing of the original return. An amended return shall be filed within the period allowed under the Tax – General Article for filing refund claims. The provisions of this paragraph do not extend the period in which a certified rehabilitation must be completed to be eligible for a tax credit under this section. An amended return may account for an amended certification issued by the Director for a certified rehabilitation. A refund payable under subsection (c) of this section: operates to reduce the income tax revenue from corporations if the person entitled to the refund is a corporation subject to the income tax under Title 10 of the Tax – General Article; operates to reduce insurance premium tax revenues if the person entitled to the refund is subject to taxation under Title 6 of the Insurance Article; and operates to reduce the income tax revenue from individuals if the person entitled to the refund is: an individual subject to the income tax under Title 10 of the Tax – General Article; or an organization exempt from taxation under § 501(c)(3) of the Internal Revenue Code. On or before December 15 of each fiscal year, the Director shall report to the Governor and, subject to § 2–1257 of the State Government Article, to the General Assembly, on: the initial credit certificates awarded for commercial rehabilitations and small commercial projects under this section for that fiscal year; the tax credits awarded for certified rehabilitations completed in the preceding fiscal year; whether the tax credits awarded for certified rehabilitations completed in the preceding fiscal year were located in: a local historic district; or a national register district; and the estimated amount of directly related administrative costs reserved in the Reserve Fund, the estimated amount of fees to be collected, the actual directly related administrative costs, and the actual amount of fees collected. The report required under paragraph (1) of this subsection shall include for each initial credit certificate awarded for the fiscal year for a commercial rehabilitation: the name of the owner or developer of the commercial rehabilitation; the name and address of the proposed or certified rehabilitation and the county where the project is located; the dates of receipt and approval by the Director of all applications regarding the project, including applications: for certification that a structure or property will qualify as a certified historic structure; and for approval of the proposed rehabilitation; and the maximum amount of the credit stated in the initial credit certificate for the project and the estimated rehabilitation expenditures stated in the application for approval of the plan of proposed rehabilitation. The report required under paragraph (1) of this subsection shall include for each certified commercial rehabilitation completed during the preceding fiscal year: the name of the owner or developer of the commercial rehabilitation; the name and address of the certified rehabilitation and the county where the project is located; the dates of receipt and approval by the Director of all applications regarding the project; and the maximum amount of the credit stated in the initial credit certificate for the project and the estimated rehabilitation expenditures stated in the application for approval of the plan of proposed rehabilitation; and the actual qualified rehabilitation expenditures and the final amount of the credit for which the project qualified. The report required under paragraph (1) of this subsection shall summarize for each category of certified rehabilitations: the total number of applicants for: certification that a structure or property will qualify as a certified historic structure; approval of plans of proposed rehabilitations; or certification of the completed rehabilitations; the number of proposed projects for which plans of proposed rehabilitation were approved; and the total estimated rehabilitation expenditures stated in approved applications for approval of plans of proposed rehabilitation and the total qualified rehabilitation expenditures for completed rehabilitations certified. The information required under paragraph (4) of this subsection shall be provided in the aggregate and separately for each of the following categories of certified rehabilitations: owner–occupied single family residential structures; small commercial projects; and commercial rehabilitations. Subject to the provisions of this subsection, the provisions of this section and the tax credit authorized under this section shall terminate as of July 1, 2031. On and after July 1, 2031: the tax credit authorized under this section may be claimed for: a rehabilitation project, other than a commercial rehabilitation, for which an application for approval of a plan of proposed rehabilitation was received by the Director on or before June 30, 2031; or a commercial rehabilitation for which an initial credit certificate has been awarded under subsection (d) of this section; and the Director shall continue to report to the Governor and the General Assembly as required under subsection (i) of this section for as long as any rehabilitation project for which the tax credit may be claimed remains incomplete.

On request by the Trust, the Board of Public Works may acquire part or all of any property that the Trust finds is a historic landmark worthy of public care and preservation. The property may be acquired by gift or by purchase with any available money. Under § 5A-318 of this subtitle, the Board of Public Works may select the Trust as the State unit to control and administer any property acquired. For these purposes the Board of Public Works may transfer title to or an interest in the property to the Trust or to an appropriate governmental unit, private agency, or corporation, subject to covenants and conditions that call for the property to: be properly maintained and controlled; and revert to the Board of Public Works on breach of any of these conditions or covenants.

To preserve the architectural and scenic integrity and beauty of the State House and other nearby real properties owned or used by the State or a State unit, the Board of Public Works may acquire architectural easements in the following areas in the City of Annapolis: around State Circle; on School Street opposite the Executive Mansion; and on the easterly side of North Street, between State Circle and College Avenue. The areas listed in paragraph (1) of this subsection include: the bed of the street and outer sidewalk areas to the building line on the outer perimeter; and an area extending outward 50 feet from that building line. The Board of Public Works may acquire architectural easements by purchase, gift, exchange, or condemnation under Title 12 of the Real Property Article, with any available money. The Board of Public Works may: agree or contract with the owner or user of real property in the specified area to prohibit the owner or user from making any structural or other physical change in the property that the Board of Public Works determines would harm the architectural and scenic integrity and beauty of the property and the specified area; and give the owner or user cash or other consideration, including a promise not to acquire an architectural easement by condemnation over part or all of the property while the owner or user complies with the agreement or contract.

This subtitle does not abrogate or supplant any power of the State Highway Administration.

In this part the following words have the meanings indicated. “Board” means the Board of Trustees of the Maryland Historical Trust. “Trustee” means a member of the Board.

There is a Maryland Historical Trust. The Trust is an instrumentality of the State, is a body corporate, and has perpetual existence. The General Assembly may terminate the Trust if the purposes of the Trust end.

The purposes of the Trust are to: preserve, protect, and enhance districts, sites, buildings, structures, and objects of significance in the prehistory, history, upland and underwater archaeology, architecture, engineering, and culture of the State; encourage others to do the same; and promote interest in and study of those things listed in item (1) of this subsection. The Trust is charitable and is intended to benefit the residents of the State. The General Assembly may modify the Trust to carry out the purposes of the Trust.

There is a Board of Trustees of the Trust.

The Board consists of 15 trustees. The Governor, the President of the Senate, and the Speaker of the House of Delegates are ex officio trustees. With the advice and consent of the Senate, the Governor shall appoint the other 12 trustees. The Governor may delegate any or all of the Governor’s powers or duties as trustee to a member of the Executive Department of the State. The President of the Senate may delegate any or all of the President’s powers or duties as trustee to a member of the Senate. The Speaker of the House of Delegates may delegate any or all of the Speaker’s powers or duties as trustee to a member of the House of Delegates. At least two of the trustees appointed by the Governor shall have: an advanced degree in archaeology or a closely related field; and experience in archaeology. Of the trustees who qualify under paragraph (1) of this subsection: at least one shall have experience in submerged archaeology; and at least one shall have experience in terrestrial archaeology. The Secretary shall advise the Governor on the appointment of trustees qualified under paragraph (1) of this subsection after consulting with the Advisory Committee on Archaeology established under § 5A-336 of this subtitle. The term of an appointed trustee is 4 years. The terms of appointed trustees are staggered as required by the terms provided for trustees on October 1, 2005. If an appointed trustee fails to serve or to complete a term, the Governor shall appoint a successor for the rest of the term. To the extent practicable and consistent with the purposes of the Trust, trustees shall be chosen, whether by delegation or appointment, to achieve a broad geographic distribution of trustees throughout the State.

The Board shall elect annually a chair, a vice chair, and a treasurer from among its trustees. The Board shall determine how its officers are to be elected.

Eight trustees are a quorum. The Board shall meet at least twice a year at the times and places that it sets. The Director appointed under § 5A-316 of this subtitle shall call a special meeting: on order of the chair, on the chair’s own initiative; or at the request of four or more trustees. The Director shall notify each trustee in writing of the time and place of a meeting at least 7 days before the meeting. The trustees may hold a meeting on less than 7 days’ notice if all trustees agree. A trustee: may not receive compensation for duties performed as a trustee; but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

The trustees shall appoint a Director, with the approval of the Governor. The Director is the chief administrative officer of the Trust. The Director shall have: knowledge in architecture, history, archaeology, or another appropriate discipline relating to historic preservation; and experience in historic preservation or related fields. The Director serves at the pleasure of the Board and may be removed with the concurrence of the Governor. The Director is entitled to the salary provided in the State budget. The Director may employ a staff in accordance with the State budget. Under the direction of the Board, the Director shall perform the duties and functions that the Board prescribes.

On request, the Board shall receive legal counsel and services from the Attorney General to carry out the purposes of the Trust.

The Board shall exercise the powers and duties of the Trust. The Trust may: adopt regulations to carry out this subtitle; take legal action to enforce this subtitle; adopt and use an official seal; contract for consultant or other services; apply for and accept money, grants, or loans from federal, State, local, or private sources; agree with a prospective mortgagor or grantee to provide financial assistance to a historic preservation project; acquire and hold real and personal historic property by gift, purchase, devise, bequest, or any other means; acquire or take assignment of a note, mortgage, or other security or evidence of indebtedness; acquire, attach, accept, or take title to an historic property by conveyance or, if a mortgage is in default, by foreclosure; sell, convey, assign, lease, or otherwise transfer or dispose of any property held by the Trust; make contracts, leases, or other agreements necessary or incidental to the performance of the duties of the Trust; preserve, restore, rehabilitate, reconstruct, protect, document, excavate, salvage, exhibit, and interpret historic properties; accept a gift or bequest for any purpose of the Trust and, unless the donor specifies otherwise, use the principal and income of the gift or bequest by: spending all or part of them to further the Trust; or investing them, with the consent of the State Treasurer, in general obligations of the State or other securities; apply to Trust purposes any money, asset, property, or other thing of value the Trust receives incident to its operation; or delegate any of the powers of the Trust to one or more trustees or the Director. The Trust shall: direct and conduct a comprehensive statewide survey of historic properties in cooperation with: units of the federal government; State units, including the Department of Natural Resources; political subdivisions; private organizations; and individuals; maintain an inventory and register of historic properties; document, research, record, and evaluate the significance of historic properties; prepare and implement comprehensive statewide and regional historic preservation plans; help political subdivisions to develop local historic preservation plans and programs; carry out programs and activities to protect, preserve, and encourage the preservation of historic properties; preserve and administer historic properties held by the Trust; cooperate with units of federal government, State units, political subdivisions, and private entities to ensure that historic properties are considered at all levels of planning and development; review the policies and programs of each State unit that affect historic properties, and recommend ways to improve the effectiveness and coordination of these policies and programs, consistent with this subtitle; administer programs of financial and technical assistance for historic preservation projects; make recommendations on the certification and eligibility of historic properties for tax incentives and other programs of public assistance; provide public information, education, and training relating to historic preservation; encourage public interest and participation in historic preservation; advise and assist the State Historic Preservation Officer in implementing the State Historic Preservation Officer’s responsibilities; advise the Governor and the General Assembly on historic preservation; and submit annually to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly a report of the activities of the Trust during the preceding year and any recommendations for actions appropriate to further its purposes. Income and fees received by the Trust, including fees authorized under this subtitle and income from educational and other preservation materials, activities, and services of the Trust, are not subject to § 7-302 of this article. Money maintained under this section is subject to audit by the State, including the Legislative Auditor.

Unless the Board of Public Works approves, the Trust may not dispose of any property transferred to it by the State or purchased with State money. The Trust may not sell, convey, assign, or lease out any historic property solely for investment. Before selling or conveying real or personal property listed in or eligible to be listed in the Maryland Register of Historic Properties, the Trust shall: ensure that the proposed sale or conveyance provides for the preservation or enhancement of the property; give preference to acquisition proposals that: are made by political subdivisions or capable private nonprofit organizations qualifying under § 501(c)(3) of the Internal Revenue Code; provide for uses most compatible with the historic or architectural value of the property; and provide the greatest opportunity for public involvement, participation, education, and enjoyment; and provide a 6-month option to purchase to entities that: meet the requirements of item (2) of this subsection; and propose to purchase at the State-established appraised fair market value. The reversion under a lease made by the Trust may not be redeemed at the option of the tenant unless the lease expressly provides that the reversion may be redeemed at the option of the tenant.

In this section, “general repair and maintenance” means work to correct damage from deterioration or wear and tear of a property, including maintenance, reconstruction, repair, repainting, and refinishing. If an application for the change or alteration to a property subject to a historic preservation easement held by the Trust is for general repair or maintenance of the property, the Trust shall notify the applicant of the Director’s decision on the application on or before the earlier of: the expiration of the period of time specified in the easement documentation in which the Trust is required to notify the applicant of the Director’s decision; or 90 days after the date the application or any supplement to an application is submitted to the Trust.

In this part the following words have the meanings indicated. “Council” means the Maryland Advisory Council on Historic Preservation. “Historic Register” means the Maryland Register of Historic Properties. “Preparation costs” means the costs of studies, surveys, plans and specifications, or architectural, engineering, and other special services.

The Trust shall compile a Maryland Inventory of Historic Properties that consists of districts, sites, buildings, structures, and other objects of known or potential value to the prehistory, history, upland and underwater archaeology, architecture, engineering, and culture of the State. The Trust shall compile a Historic Register to include all properties in the State that are listed in or eligible for listing in the National Register of Historic Places of the United States Department of the Interior. The Trust shall adopt regulations specifying procedures and eligibility standards for including properties in the Historic Register. The Director shall determine whether a property is eligible to be listed in the National Register of Historic Places. The Director’s determination may be appealed to the Governor’s Consulting Committee on the National Register of Historic Places, which reviews nominations to the National Register under the National Historic Preservation Act. The determination of the Governor’s Consulting Committee is final. The location and character of a historic property included in the Maryland Inventory of Historic Properties or the Historic Register shall be confidential if the Director determines that disclosure would create a substantial risk of theft of the property or damage to the property or to the area where the property is located.

There is a Maryland Advisory Council on Historic Preservation. The Council consists of seven voting members. The ex officio members are: the Secretary of General Services; the Secretary of Housing and Community Development; the Secretary of Planning; and the Secretary of Transportation. The Governor shall appoint the other three members, of whom: two shall be individuals with expertise in architecture, history, archaeology, or another appropriate discipline that relates to historic preservation; and one shall be a member of the general public. An ex officio member may designate a deputy secretary from the member’s department to act in the member’s absence. The Secretary of Planning serves as chair. The term of an appointed member is 4 years. The terms of the appointed members are staggered as required by the terms provided for members of the Council on October 1, 2005. At the end of a term, a member continues to serve until a successor is appointed and qualifies. A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies. A majority of the authorized membership of the Council is a quorum. The Council shall set the times and places of its meetings. A member of the Council: may not receive compensation as a member; but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. The Director of the Trust is the secretary and staff to the Council.

To the extent feasible, a State unit that submits a request or is otherwise responsible for a capital project shall consult with the Director to determine whether the project will adversely affect any property listed in or eligible for listing in the Historic Register. The consultation shall occur: before the State unit submits a request for the capital project to the Department of Budget and Management under § 3–602 of this article; before or as part of the final project planning phase for a major transportation capital project as defined in § 2–103.1 of the Transportation Article; or as early in the planning process as possible for a capital project that uses nonbudgeted money and is subject to the reporting requirements of § 3–602 of this article. State units that own or control properties may consult with the Director to develop plans or interagency agreements to identify, evaluate, and manage any of those properties that are listed in or eligible to be listed in the Historic Register. Capital projects undertaken in accordance with a plan approved by the Trust or an interagency agreement are not subject to further review under this section. This subsection applies to a capital project that: is not being carried out by a State unit; uses the proceeds of State general obligation bonds; and is not otherwise reviewed by the Trust under this section. Before the Board of Public Works may approve the use of bond proceeds for the project, the Department of Budget and Management or another State unit responsible for the project shall consult with the Director to determine whether the project will adversely affect any property listed in or eligible to be listed in the Historic Register. Within 30 days after a State unit notifies the Director of a proposed capital project under this section, the Director shall determine whether the project would adversely affect any property listed in or eligible to be listed in the Historic Register. If the Director finds that the proposed capital project would have a significant adverse effect on a listed or eligible property, the Director and the State unit shall consult to determine whether a practicable plan exists to avoid, mitigate, or satisfactorily reduce the adverse effect. If the Director and the State unit cannot agree on a plan, the State unit shall submit to the Council a report of the consultations and the findings and recommendations of the State unit. Within 30 days after receiving the report, the Council shall submit to the State unit comments: accepting the adverse effect; or recommending practicable alternatives to avoid, mitigate, or satisfactorily reduce the adverse effect. The State unit may: incorporate in the project the alternatives recommended by the Council; or disagree with the comments of the Council. If the State unit disagrees with the comments of the Council, the State unit: shall respond in writing to the Council, explaining why the State unit refuses to adopt the measures included in the comments of the Council; and may not proceed with the project for at least 10 working days after responding. Except for the cost of studies and surveys, a State unit may include the capital costs of preservation activities required under this subtitle as eligible project costs of any project undertaken or financed by the State unit. The Trust shall adopt regulations that establish procedures and standards for: administrative review and comment under this section, including time frames for Trust action by the Trust or the Director on specific categories of projects; exempting specific projects, categories of projects, or categories of programs from any requirement of this section, if the exemption is found to be consistent with the purposes of this subtitle and the best interests of the State, considering the magnitude of the exemption and the risk of impairing historic properties; and participation by State units, political subdivisions, private organizations, and other entities in proceedings under this section that may affect their interests. In accordance with regulations adopted under subsection (f) of this section, this section may be applied to any undertaking that is subject to the National Historic Preservation Act, 54 U.S.C. § 306108. Failure by a State unit to comply with this section does not create a private cause of action under State law.

In cooperation with the Trust and subject to available resources, each State unit shall: establish a program to identify, document, and nominate to the Trust each property owned or controlled by the State unit that appears to qualify for the Historic Register; ensure that no property listed in or eligible to be listed in the Historic Register is inadvertently transferred, sold, demolished, destroyed, substantially altered, or allowed to deteriorate significantly; and use any available historic building under its control to the extent prudent and practicable before acquiring, constructing, or leasing a building to carry out its responsibilities. If it is prudent, practicable, and in the State’s best interest to do so, a State unit that transfers a surplus property listed in or eligible to be listed in the Historic Register shall ensure that the transfer provides for the preservation or enhancement of the property. If a historic property is to be altered substantially or destroyed by State action or with financial assistance from a State unit, the State unit shall cause timely steps to be taken to: make appropriate investigations and records; salvage appropriate objects and materials; and deposit with the Trust the results of the investigations, the records, and the recovered objects and materials. A State unit that issues permits or licenses or provides financial assistance for any undertaking shall cooperate with the Trust by: giving notice to the Director, on request, of each application for a permit, a license, or financial assistance; and requiring that, where appropriate, an applicant for a permit, a license, or financial assistance consult with the Director before the State unit takes final action on the application. After consulting with the Director, and to avoid, mitigate, or satisfactorily reduce any significant adverse effect on a property listed in or eligible to be listed in the Historic Register, a State unit may: put reasonable conditions on a license, permit, or award of financial assistance; and seek guidance from the Council before imposing any conditions on a license, permit, or award of financial assistance. A person may appeal in accordance with the Administrative Procedure Act the reasonableness of a condition imposed by a State unit under this subsection on a license or permit. By regulation, the Trust shall establish professional standards, guidelines, and procedures to preserve historic properties owned, controlled, regulated, or assisted by State units, to minimize the need for Director review, and to avoid duplication and delays. This section may be applied to any undertaking that is subject to the National Historic Preservation Act, 54 U.S.C. § 306108. Failure by a State unit to comply with this section does not create a private cause of action under State law.

In this section the following words have the meanings indicated. “MHT Loan Fund” means the Historic Preservation Loan Fund of the Trust. “MHT Loan Program” means the Historic Preservation Loan Program of the Trust. There is an MHT Loan Program in the Trust. The purpose of the MHT Loan Program is to implement and encourage the preservation of historic properties. The Trust shall administer the MHT Loan Program and coordinate the MHT Loan Program with federal and State programs that complement or facilitate carrying out the MHT Loan Program. There is an MHT Loan Fund in the Trust. The MHT Loan Fund may be used: to pay administrative costs directly related to the MHT Loan Program; to pay for the Trust to acquire historic properties or interests in historic properties for its authorized purposes or for resale or lease subject to appropriate preservation covenants; to pay costs, including preparation costs, to restore or rehabilitate historic properties owned by the Trust for: the Trust’s authorized purposes; or resale or lease subject to appropriate preservation covenants; to make loans to nonprofit organizations, political subdivisions, business entities, and individuals to: acquire, rehabilitate, restore, or refinance historic properties; or provide short–term financing for costs, including preparation costs, directly related to work that the Trust or the State Historic Preservation Officer requires or recommends to be undertaken before a construction project financed with federal or State money is begun or continued; or to make a transfer to a qualified cooperating nonprofit organization as provided for under § 5A–331 of this part. The MHT Loan Fund is a continuing, nonlapsing special fund that is not subject to § 7–302 of this article. The State Treasurer shall hold and the Comptroller shall account for the MHT Loan Fund. The MHT Loan Fund consists of: money appropriated in the State budget to the MHT Loan Program; money received as interest or repayment of principal on loans made under the MHT Loan Program or the Capital Revolving Fund for Historic Preservation; the proceeds from the resale or lease of property originally acquired by the Trust with money from the MHT Loan Fund or the Capital Revolving Fund for Historic Preservation; money received from other public or private sources for the benefit of the MHT Loan Fund; and money received from the sale of general obligation bonds. Money in the MHT Loan Fund shall be invested in the same manner as other State money. The Department shall adopt regulations to carry out the purposes of the MHT Loan Program. The regulations shall include: application procedures; procedures to give adequate notice to the public of assistance available under the MHT Loan Program; provisions for the review of plans and specifications; provisions for the inspection of projects during construction; and selection criteria the Trust must consider in evaluating loan applications, including: the relative historical or cultural significance of, and the urgency of need for, the project to be financed by the loan; any proposed contribution by the appropriate political subdivision to the project; the geographic distribution of loan assistance from the MHT Loan Fund; and other relevant factors. With the approval of the Secretary, for each loan the Trust may set: the principal amount; the maturity; the repayment terms; and an interest rate that complies with applicable federal regulations governing State borrowing. A loan from the MHT Loan Fund may be granted at an interest rate lower than rates on other loans from the MHT Loan Fund if: the loan recipient is a nonprofit organization or a political subdivision; or the Secretary of Housing and Community Development determines under § 4–212 of the Housing and Community Development Article that after restoration or rehabilitation, the historic property will be wholly or partly occupied by individuals or families of limited income. A loan from the MHT Loan Program may be secured by: a mortgage lien, which may be subordinate to other mortgage liens; a guarantee of repayment; or another form of collateral acceptable to the Trust. Without approval or execution by the Board of Public Works, the Trust may take title to a mortgaged property by foreclosure or by deed in lieu of foreclosure and: convey title to a buyer; and obtain and seek enforcement of a deficiency judgment. An individual or business entity may receive a loan only if the recipient can document that private financing is unavailable. The Trust shall ensure that no loan is made under the MHT Loan Program to acquire, restore, or rehabilitate a historic property unless the historic property is listed in or eligible to be listed in the Historic Register. The Trust shall require the recipient of a loan from the MHT Loan Program to enter into an agreement to preserve and maintain the property. If the property is real property, the agreement shall be a recordable historic preservation easement. The Secretary may waive the agreement requirement if the Secretary finds that an agreement is impracticable. The trustees shall review and make recommendations to the Secretary about loans and expenditures from the MHT Loan Fund, and the Secretary shall approve each loan and expenditure from the MHT Loan Fund. To the extent required by regulations adopted by the Secretary and approved by the Board of Public Works, the Secretary shall submit to the Board of Public Works for approval a proposed loan or expenditure from the MHT Loan Fund that will be financed through the sale of State general obligation bonds. Except for an expenditure under subsection (d)(2) or (3) of this section, a loan or expenditure from the MHT Loan Fund is not subject to Titles 4 and 5 of this article. On or before December 31 of each year, the Trust shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, to the General Assembly on the financial status and the activities of the MHT Loan Program for the preceding fiscal year. A person may not knowingly make or cause to be made a material false statement of fact, including an understatement or overstatement of financial condition, in a statement or report in or regarding an application for a loan or affecting an existing loan. A person who violates this subsection is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 2 years or a fine not exceeding $5,000 or both.

In this section the following words have the meanings indicated. “MHT Grant Fund” means the Historic Preservation and Historical and Cultural Museum Assistance Grant Fund of the Trust. “MHT Grant Program” means the Historic Preservation Grant Program of the Trust. There is an MHT Grant Program in the Trust. The purposes of the MHT Grant Program are to: implement and encourage the preservation of historic properties; and promote interest in and study of historic properties and their preservation. The Trust shall administer the MHT Grant Program and coordinate the MHT Grant Program with federal and State programs that complement or facilitate the MHT Grant Program. The Trust shall ensure that a grant awarded under the MHT Grant Program to acquire, restore, or rehabilitate a historic property is used only if the historic property is listed in or is eligible to be listed in the Historic Register. The Trust shall require a grantee under the MHT Grant Program to enter into an agreement to preserve and maintain the property. If the property is real property, the agreement shall be a recordable historic preservation easement. The Secretary may waive the agreement requirement if the Secretary determines that an agreement is impracticable. The Department shall adopt regulations to carry out the purposes of the MHT Grant Program. The regulations shall include: application procedures; procedures to give adequate notice to the public of assistance available under the MHT Grant Program; provisions for the review of plans and specifications; provisions for the inspection of projects during construction; and selection criteria the Trust must consider when evaluating applications for grants, including: the relative historical or cultural significance of, and the urgency of need for, the project to be financed by the grant; any proposed contribution by the appropriate political subdivision to the project; the geographic distribution of grant assistance from the MHT Grant Fund under subsection (e) of this section; and other relevant factors. There is an MHT Grant Fund in the Trust. The MHT Grant Fund may be used: for the purposes set forth in § 5A–353 of this subtitle; to make grants to nonprofit organizations, political subdivisions, business entities, and individuals to acquire, rehabilitate, or restore historic properties; to make grants to nonprofit organizations and political subdivisions to pay costs, including preparation costs, that are directly related to a rehabilitation or restoration project; to make grants to nonprofit organizations and political subdivisions for historic preservation education and promotion, including the research, survey, and evaluation of historic properties and the preparation of historic preservation planning documents and educational materials; to purchase or acquire historic properties or interests in historic properties for the Trust’s authorized purposes or for resale or lease with appropriate preservation covenants; to pay costs, including preparation costs, that are directly related to restoring or rehabilitating historic properties that the Trust owns for use in accordance with the Trust’s authorized purposes or for resale or lease subject to appropriate preservation covenants; to pay for historic preservation education and promotion conducted by the Trust, and for the research, survey, and evaluation of historic properties and the preparation of historic preservation planning documents and educational materials; and to pay for reasonable and necessary administrative costs directly related to the administration of the MHT Grant Fund, not to exceed 5% of the annual general fund appropriation to the MHT Grant Fund. The Trust shall administer the MHT Grant Fund. The MHT Grant Fund is a continuing, nonlapsing special fund that is not subject to § 7–302 of this article. The Treasurer shall hold and the Comptroller shall account for the MHT Grant Fund. The MHT Grant Fund consists of: money appropriated in the State budget to the MHT Grant Program or the Historical and Cultural Museum Assistance Program under § 5A–352 of this subtitle; the proceeds from the resale or lease of any properties originally acquired by the Trust from the MHT Grant Fund or the Capital Grant Fund for Historic Preservation; money received from other public or private sources for the benefit of the MHT Grant Fund; and money received from the sale of State general obligation bonds. Subject to the limitations of the State budget, for fiscal year 2018 and each fiscal year thereafter, the Governor shall include in the annual State budget bill an appropriation of $1,500,000 to the MHT Grant Fund. Money in the MHT Grant Fund shall be invested in the same manner as other State money. The trustees shall review and make recommendations to the Secretary about grant applications and expenditure requests from the MHT Grant Fund. The trustees shall base their grant recommendations on a competitive selection process. In any fiscal year, the Secretary may hold up to 20% of the money in the MHT Grant Fund in reserve for emergency use in accordance with subsection (e) of this section. Grants to business entities may not exceed 10% of all grants awarded from the MHT Grant Fund under this section. Grants to historic properties owned by the Trust may not exceed 10% of all grants awarded from the MHT Grant Fund under this section. To the extent required by regulations adopted by the Secretary and approved by the Board of Public Works, the Secretary shall submit to the Board of Public Works for approval grants or expenditures from the MHT Grant Fund to be financed through the sale of State general obligation bonds. Except for an expenditure under subsection (e)(2)(v) and (vi) of this section, grants and expenditures from the MHT Grant Fund are not subject to Titles 4 and 5 of this article. On or before December 31 of each year, the Trust shall report to the Governor and, subject to § 2–1257 of the State Government Article, to the General Assembly on the financial status and the activities of the MHT Grant Program and the MHT Grant Fund for the preceding fiscal year. In the report required under paragraph (1) of this subsection, the Trust shall include information on: the amount of the MHT Grant Fund that is used for administrative purposes; and the amount of grants made to historic properties owned by the Trust. A person may not knowingly make or cause to be made a material false statement of fact, including an understatement or overstatement of financial condition, in a statement or report in or regarding an application for a grant or affecting an existing grant. A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 2 years or a fine not exceeding $5,000 or both.

In this section, “Fund” means the Historic Marker Program Fund. There is a Historic Marker Program Fund in the Trust. The purpose of the Fund is to produce and install historic markers at sites of statewide historical significance. The Trust shall administer the Fund. The Fund is a continuing, nonlapsing special fund that is not subject to § 7-302 of this article. The State Treasurer shall hold and the Comptroller shall account for the Fund. The Fund consists of: money appropriated to the Fund in the State budget; money recovered by the State to replace damaged or destroyed historic markers; and money from any other source received for the benefit of the Fund. The Trust may use money from the Fund to produce and install a historic marker at a site that the Trust determines to have statewide historical significance: if the site is on State-owned land; or if the site is not on State-owned land and at least one-half of the cost of producing and installing the historic marker is provided from sources other than the State. Money in the Fund shall be invested in the same manner as other State money. The Trust shall approve the form and text of historic markers produced and installed under this section. Except as provided in paragraph (3) of this subsection, the Trust shall approve the location of a historic marker. If a historic marker is to be placed within the right-of-way of a public highway or street, the unit of the State or the political subdivision that maintains the public highway or street shall approve the location and manner of installation of the historic marker. The State owns the historic markers produced and installed under this section.

In this section the following words have the meanings indicated. “AAHP Grant Fund” means the African American Heritage Preservation Grant Fund of the Trust. “African American Heritage Grant” means a grant made under the Program for an African American Heritage Preservation Project or that is an African American Heritage Preservation Noncapital Grant. “African American Heritage Preservation Noncapital Grant” means a grant awarded under this section for the purpose of preserving or sharing African American history or culture in the State. “African American Heritage Preservation Project” means a capital project that: preserves buildings, communities, and sites of historical and cultural importance to the African American experience in the State; and is for: the acquisition of land or buildings; or the construction or improvement of land or buildings. “Commission” means the Commission on African American History and Culture. “Construction or improvement” means planning, design, engineering, alteration, construction, reconstruction, enlargement, expansion, extension, improvement, replacement, rehabilitation, renovation, upgrading, repair, or capital equipping. “Program” means the Speaker Adrienne A. Jones African American Heritage Preservation Program. “Secretary” means the Secretary of Planning. There is a Speaker Adrienne A. Jones African American Heritage Preservation Program in the Trust. The purpose of the Program is to identify and preserve buildings, communities, and sites of historical and cultural importance to the African American experience in the State. The Trust shall develop and administer the Program in partnership with the Commission. There is an African American Heritage Preservation Grant Fund in the Trust. The Trust shall administer the AAHP Grant Fund. The AAHP Grant Fund may be used only for African American Heritage Grants. The AAHP Grant Fund is a special, nonlapsing fund that is not subject to reversion under § 7–302 of this article. The State Treasurer shall hold the AAHP Grant Fund separately and the Comptroller shall account for the AAHP Grant Fund. The AAHP Grant Fund consists of: money appropriated in the State budget to the Program; investment earnings of the AAHP Grant Fund; grants and donations to the AAHP Grant Fund; any other money from any other source accepted for the benefit of the AAHP Grant Fund; and money received from the sale of State general obligation bonds. For each fiscal year, the Governor shall include in the annual operating or capital budget an appropriation of $5,000,000 to the AAHP Grant Fund to be used for African American Heritage Preservation Projects. The State Treasurer shall invest the money of the AAHP Grant Fund in the same manner as other State money. Any investment earnings of the AAHP Grant Fund shall be paid into the AAHP Grant Fund. Expenditures from the AAHP Grant Fund may be made only in accordance with the State budget. On or before a date established annually by the Trust and the Commission and subject to availability of money in the AAHP Grant Fund, an individual or a business entity, nonprofit organization, or political subdivision may submit an application for an African American Heritage Grant to the Trust. An application shall include: a description of the scope and purpose of the project; a building plan that includes the estimated total cost of the project; and any other information required by the Trust and the Commission. An African American Heritage Grant to a business entity, an individual, or a political subdivision may not exceed $500,000. The Trust and the Commission shall: review all grant applications submitted in accordance with subsection (d) of this section; except as provided under subsection (g) of this section, consider a grant application competitively against all other grant applications submitted during the same fiscal year; and make recommendations regarding each application to the Secretary for the award of African American Heritage Grants. In making recommendations under this subsection, the Trust and the Commission shall consider: the public necessity and urgency of a project; the need for additional sources of funding for a project; the estimated cost and timeliness of executing a project; geographic diversity; and any other criteria determined by the Trust and the Commission to be relevant. Subject to the requirements of subsection (h)(2) and (3) of this section, in any fiscal year, the Secretary may reserve up to 20% of the money available in the AAHP Grant Fund to award African American Heritage Grants to eligible emergency African American Heritage Preservation Projects not otherwise applied for in accordance with subsection (d) of this section. The application for an emergency grant shall include any information required by the Trust. The Trust and the Commission shall: review all applications for emergency grants; and for each application for an emergency grant, make recommendations to the Secretary on whether to award the grant. The Secretary shall: review each grant application submitted under subsection (d) or (g) of this section and the recommendations of the Trust and the Commission; consider: the applications and recommendations under the criteria set forth in subsection (f)(2) of this section; and if the grant was submitted under subsection (g) of this section, the nature of the emergency; and subject to paragraphs (2) and (3) of this subsection, make the final decision to award the grant or deny the application. Subject to paragraph (3)(ii) of this subsection, the Secretary may award a grant under the Program funded by money received under subsection (c)(5)(ii), (iv), or (v) of this section only for an African American Heritage Preservation Project. The Secretary may award a grant funded by money received under subsection (c)(5)(iii) of this section as an African American Heritage Preservation Noncapital Grant. If, after the award of all eligible grants under subparagraph (i) of this paragraph have been made, there is additional money in the AAHP Grant Fund received under subsection (c)(5)(iii) of this section, the Secretary may award a grant funded by money received under subsection (c)(5)(iii) of this section for an African American Heritage Preservation Project. The Secretary may award a grant under the Program as an African American Heritage Preservation Noncapital Grant from the money received under subsection (c)(5)(i) of this section, if the amount received is more than the $5,000,000 required under subsection (c)(6) of this section. On or before December 31 of each year, the Trust and the Commission shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly, on the financial status and the activities of the Program and the AAHP Grant Fund for the prior fiscal year. Except as provided in paragraph (3) of this subsection, the Trust shall require a grantee awarded an African American Heritage Grant to enter into an agreement to preserve and maintain the property for which the grant was awarded. If the property is historic real property, the agreement shall be a recordable historic preservation easement. The Director may waive the agreement or easement requirement if the Director determines that an agreement or easement is impracticable, infeasible, or not necessary under the circumstances. Subject to paragraph (2) of this subsection, the Secretary, in consultation with the Commission, shall adopt regulations to implement the Program. A proposed regulation that relates to approval by the Board of Public Works of grants to be financed through the sale of State general obligation bonds may not be adopted under paragraph (1) of this subsection unless the regulation is approved by the Board of Public Works. To the extent required by regulations adopted under subsection (k) of this section, the Trust and the Commission shall submit to the Board of Public Works for the Board’s approval each African American Heritage Grant that is to be financed through the sale of State general obligation bonds.

In this section, a “qualified cooperating nonprofit organization” means a nonprofit organization in good standing with the State Department of Assessments and Taxation that: is based in the State; operates statewide; and has demonstrated experience: rehabilitating historic structures; managing preservation funds; and holding preservation easements. A qualified cooperating nonprofit organization may use funds provided by the Trust only: to pay for the qualified cooperating nonprofit organization to acquire historic properties or interests in historic properties for resale or lease; to pay costs, including preparation and administrative costs, to restore or rehabilitate historic properties owned by the qualified cooperating nonprofit organization for resale or lease; to make loans to other nonprofit organizations, political subdivisions, and business entities to acquire, rehabilitate, restore, or refinance historic properties; to make loans to individuals to rehabilitate or restore historic properties recognized by the National Park Service as National Historic Landmarks; or for necessary administrative and programmatic expenses associated with carrying out the transfer of funds. A qualified cooperating nonprofit organization shall develop a competitive process for making awards of financial assistance with funds received from the Trust. A qualified cooperating nonprofit organization receiving funds from the Trust, in coordination with the Director, shall adopt appropriate guidelines to carry out the purposes enumerated in subsection (b) of this section. A qualified cooperating nonprofit organization shall make the following information available on its website: the guidelines established under subsection (c) of this section; the availability of funds; and information on projects receiving financial assistance from the transferred funds. On or before June 30 each year, a qualified cooperating nonprofit organization shall provide an annual report to the Trust outlining all funds received. The annual financial review or audit of the organization shall be provided at the request of the Trust to confirm the intended use of the transferred funds.

In this part the following words have the meanings indicated. “Archaeology Office” means the Archaeology Office established under § 5A-334 of this subtitle. “Associated funerary objects” means objects that are reasonably believed to have been placed with individual human remains as a part of the death rite or ceremony of a culture. “Cave” has the meaning stated in § 5-1401 of the Natural Resources Article. “Cave” includes: any naturally occurring void, cavity, recess, cavern, sinkhole, grotto, rock shelter, or system of interconnecting passages beneath the surface of the earth or within a cliff or ledge; and natural subsurface water and drainage systems. “Committee” means the Advisory Committee on Archaeology. “Human remains” means any part of the body of a deceased human being in any state of decomposition. “Native American” means an individual or a descendant of an individual who inhabited North America before European contact. “Submerged archaeological historic property” means any underwater structure, remains, or object that: yields or is likely to yield information significant to the study of human prehistory, history, or culture; and is so embedded in underwater land that excavating tools are needed to move the bottom sediments to reach all or part of it and has remained unclaimed for at least 100 years; or is included or is eligible to be included in the National Register of Historic Places.

There is an Archaeology Office in the Trust. The Archaeology Office includes a research unit. The research unit shall: engage in and direct fundamental archaeological research; synthesize existing research information; and encourage archaeological research and investigation by museums, institutions of higher education, and scientific and historical institutions and organizations in the State. The Director shall employ a Chief Archaeologist, a State Terrestrial Archaeologist, and a State Underwater Archaeologist in accordance with § 5A-316 of this subtitle. Each archaeologist employed under this subsection shall have an advanced degree in archaeology or a closely related field from an accredited college or university. The Chief Archaeologist shall be a professional archaeologist. The Chief Archaeologist is the administrative head of the Archaeology Office. Except as provided in paragraph (2) of this subsection, the Archaeology Office includes all staff members of the Trust who are archaeologists or hired to perform archaeological work, including those who may be assigned archaeological-related functions in other units of the Trust. The Archaeology Office does not include individuals specifically assigned to a park, museum, or other site-specific facility under the jurisdiction of the Trust.

The Archaeology Office shall: cooperate in excavating historically or archaeologically significant sites in the custody or control of any other State unit; encourage the preservation of prehistoric or historic sites on privately owned land in the State; coordinate the work of retrieving and preserving archaeologically significant objects and materials found during public construction in the State; cooperate with and help museums, institutions of higher education, and other scientific or historical institutions and organizations in preserving and protecting objects and materials of archaeological nature in their custody or control; cooperate with similar units of other states in preserving archaeologically significant sites, objects, and materials; and keep institutions or units of other states from exploiting archaeologically significant sites, objects, and materials in this State. The Archaeology Office also shall: make available to museums, institutions of higher education, and other scientific or historical institutions and organizations objects and materials suitable for demonstrating the archaeological history of the State; make available to public and private schools in the State exhibits on, and help to teach students about, the life of the early settlers and Native Americans of the State; disseminate archaeological information by publishing reports of archaeological research and investigation; and establish an educational program to train interested members of the public to identify, investigate, and register terrestrial archaeological historic property. The Archaeology Office also shall: prepare a list of prioritized research goals and objectives to guide the Trust and the Department’s Division of Historical and Cultural Programs in choosing archaeological research projects to perform; develop, in consultation with the Committee, a policy that specifies the circumstances under which the Trust may directly perform archaeological investigations to comply with State or federal law that the Trust or the State Historic Preservation Officer administers; and provide to the Committee each year a copy of the part of the Trust’s annual report to the Governor, required by § 5A-318(c)(16) of this subtitle, that relates to the Trust’s archaeological activities. Except as provided in paragraph (2) of this subsection, an archaeologist who is not working for the Trust need not adhere to the archaeological research goals and objectives developed by the Archaeology Office under this section. An archaeologist who performs a project governed by any State or federal law that the Trust or the State Historic Preservation Officer administers shall adhere to those goals and objectives to the extent required by law.

There is an Advisory Committee on Archaeology. The Committee consists of seven members appointed by the Governor on recommendation of the Secretary and with the advice and consent of the Senate. The Committee shall include representatives of reputable museums, institutions of higher education, other recognized scientific or historical institutions or organizations, and qualified private firms that provide archaeological services. Each member of the Committee shall have skill and knowledge in archaeological matters. The term of a member is 3 years and begins on July 1. The terms of members are staggered as required by the terms provided for members of the Committee on October 1, 2005. At the end of a term, a member continues to serve until a successor is appointed and qualifies. A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies. The Committee shall elect a chair from among its members. The Committee shall meet at least four times a year at the times and places that the chair sets. At every meeting at least one of the following officers shall attend: the Chief Archaeologist; the State Terrestrial Archaeologist; or the State Underwater Archaeologist. A member of the Committee: may not receive compensation for duties performed as a member; but is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget. The Committee shall: advise and assist the Archaeology Office on archaeological matters; and review policies, plans, and regulations relating to archaeological matters.

A person who knows the location of an archaeological site in the State is encouraged to give the information to a reputable museum, an institution of higher education, another recognized scientific or historical institution or organization, or the Trust.

The costs of archaeological work incurred in a State project on a site of archaeological or historical significance shall be as stated in § 7-114.1 of this article.

Except as provided in subsection (b) of this section and elsewhere in this title, an object or material of historical or archaeological value or interest found on a submerged or terrestrial archaeological site on land that the State owns or controls: is the property of the State; and shall be deposited for permanent preservation with a reputable museum, an institution of higher education, or another recognized scientific or historical institution or organization. Subject to applicable federal law and paragraph (2) of this subsection, the Trust may transfer Native American or other human remains in its possession, custody, or control to an appropriate place of repose. If the cultural affiliation of human remains and associated funerary objects in the possession, custody, or control of the Trust can be established, the Trust may transfer the human remains and associated funerary objects in the following order of priority to: the descendants of the deceased; or a group established as culturally affiliated with the deceased, including a Native American tribe, band, group, or clan. Except for human remains of Native Americans and associated funerary objects subject to subsection (b)(2) of this section, the Trust may transfer any human remains and associated funerary objects in its possession, custody, or control to a reputable museum, an institution of higher education, or another recognized scientific or historical institution or organization for study, if: the study is an essential part of scientific research; the outcome of the scientific research will benefit the State; and except as provided in paragraph (2) of this subsection, the study will be completed and the items returned to the Trust within 1 year after the date of the transfer. If a transferee under this subsection makes a good faith effort but cannot complete a study within 1 year, the transferee may request an extension from the Trust. The Trust may grant the extension only in accordance with its regulations. In consultation with the Commission on Indian Affairs, the Trust shall adopt regulations to carry out this section. The regulations shall include: procedures to determine the appropriate disposition of human remains for which descent or cultural affiliation cannot be established; specific time frames and procedures to extend a study of human remains and associated funerary objects beyond 1 year; and procedures to account for any human remains and associated funerary objects that temporarily are transferred for study to a reputable museum, an institution of higher education, or another recognized scientific or historical institution or organization.

Submerged archaeological historic property on or taken from underwater land over which the State has sovereign control is the property of the State. The State may convey title to part or all of submerged archaeological historic property it owns in accordance with a permit, if the Board of Public Works approves the permit in accordance with Title 10, Subtitle 3 of this article. The Trust and a holder of a permit under § 5A-341 of this subtitle may enter into an agreement to dispose of submerged archaeological historic property recovered by the holder. The agreement may divide the recovered submerged archaeological historic property between the State and the holder. Subject to approval of the Board of Public Works, the division may be in value or in kind. The Trust shall be the arbiter of the division, acting in the best interest of the State and giving consideration to the fair treatment of the permit holder. An agreement under this subsection shall provide reasonable compensation to the permit holder for any recovered submerged archaeological historic property claimed and turned over to the State. The Trust shall: establish an educational program to train interested members of the public to identify and register submerged archaeological historic property; and certify members of the public who successfully complete the educational program. The Trust shall adopt regulations on issuing permits and disposing of and transferring submerged archaeological historic property under this subtitle. The regulations shall be adopted: with the approval of the Secretary; and in consultation with the Federal Advisory Council on Historic Preservation and appropriate public and private sector groups in the State, including sport divers, professional dive operators, dive clubs, salvors, archaeologists, commercial fishermen, and historic preservationists.

Without a permit, a person may not excavate, remove, destroy, injure, deface, or disturb a submerged archaeological historic property on land over which the State has sovereign control. A person does not need a permit to inspect, study, explore, photograph, measure, record, or otherwise use and enjoy submerged archaeological historic property on land over which the State has sovereign control if the use or activity does not: involve the excavation, removal, destruction, injury, or disturbance of the submerged archaeological historic property or its immediate environment; endanger other persons or property; or violate any law. Regulations under § 5A-340(e) of this subtitle shall provide that an individual does not need a permit to collect from submerged archaeological historic property a limited number of objects or materials recoverable by hand or with the use of screwdrivers, wrenches, or pliers. The State is not liable for injury or loss sustained by an individual engaged in activity authorized in accordance with paragraph (1) of this subsection. The Trust does not need a permit to do anything for which a permit is required under this section, but shall obtain approval for the undertaking from the Board of Public Works. The Trust shall establish a program for issuing and administering permits for activity that involves the removal, excavation, destruction, injury, or disturbance of submerged archaeological historic property on land over which the State has sovereign control. Subject to subsection (g) of this section, the Trust may issue to any person a permit granting an exclusive right to remove, excavate, destroy, injure, or disturb submerged archaeological historic property on land over which the State has sovereign control for the term and under the conditions that the Trust considers appropriate if: the Trust and the applicant for the permit have entered into an agreement under § 5A-340(c) of this subtitle; and the Trust determines that issuing the permit is in the best interest of the State and that the applicant for the permit has submitted a research plan that meets standards established by the Trust for: professional qualifications of the applicant and persons working under the permit; techniques and methodology for the recovery and dissemination of data; and proper conservation of information and materials. The Trust may not issue a permit to a person that seeks title to part or all of submerged archaeological historic property, or to a person that seeks to use submerged archaeological historic property for commercial salvage or another income-producing purpose, unless: the applicant has provided the Trust with assurance acceptable to the Trust that the project will be carried out and completed in accordance with a research plan under subsection (f)(2) of this section; and the Trust finds that: the submerged archaeological historic property is threatened with imminent destruction or substantial damage by natural or human factors unrelated to the proposed commercial excavation or disturbance; the submerged archaeological historic property is not of major scientific, archaeological, anthropological, historical, recreational, or other public value; the proposed excavation or disturbance will be minor and will produce information relevant to the statewide comprehensive historic preservation plan prepared by the Trust under § 5A-318(c)(4) of this subtitle; or the submerged archaeological historic property will not be excavated or disturbed by any other person in the foreseeable future and will remain submerged until it is excavated or disturbed. The Trust may charge a reasonable fee to issue a permit and may require an applicant or permit holder to pay for the cost of the Trust’s review, administration, and supervision of the permit. The Director or the Director’s designee may enforce this section and may: issue a summons for a violation of this section or of a permit issued under this section; seize objects or materials removed from a submerged archaeological historic property, if the removal took place without a permit on or after July 1, 1988, or if the removal was contrary to the terms of a permit; and revoke a permit on a finding that the permit was issued improperly or the terms of the permit have been violated.

Without a permit, a person may not excavate, remove, destroy, injure, deface, or disturb a terrestrial archaeological site on land that the State owns or controls. The Trust does not need a permit to do anything for which a permit is required under this section. The Trust may issue a permit to excavate a terrestrial archaeological site on land the State owns or controls to any person that the Trust determines is qualified to conduct an excavation to collect objects and materials of historical or archaeological value or interest. A terrestrial archaeological excavation may be conducted only to benefit a reputable museum, an institution of higher education, or another recognized scientific or historical institution or organization, so as to increase knowledge and appreciation of historical and archaeological objects and materials. The Trust may adopt regulations to ensure that objects and materials collected in a terrestrial archaeological excavation are properly safeguarded and preserved. The Director or the Director’s designee may enforce the provisions of this subtitle relating to terrestrial archaeological historic property in the same manner as provided in § 5A-341(i) of this subtitle for submerged archaeological historic property.

This section applies to all archaeological, prehistoric, and historic features found in any cave, including: all or any part of any burial grounds, historic or prehistoric ruins, and archaeological sites; and relics, inscriptions, saltpeter workings, fossils, bones, and remains of historical human activity. Without a permit issued under this section, a person may not excavate, remove, destroy, injure, deface, or disturb features found in a cave. In accordance with §§ 5A-341 and 5A-342 of this subtitle, an individual trained in archaeology may apply for and be issued a permit to excavate or remove features described in subsection (a) of this section from or in a cave on land that the State owns or controls by rights under a lease, option contract, or purchase contract. An individual may apply for a permit to excavate or remove archaeological, prehistoric, and historic features from a cave on privately owned land. An applicant for a permit shall: be trained in archaeology; give the Trust a detailed statement of the purposes and objectives of the proposed excavation or removal; agree to provide the Trust with information from and results of any excavation, study, or collection in accordance with the terms of the permit; obtain the prior written consent of the owner of the land on which the excavation or removal will be conducted; and agree to carry the permit while conducting the excavation or removal authorized by the permit. A permit may be issued for a maximum term of 2 years and may be renewed. A permit is not transferable, but a person working under the direct supervision of the permit holder need not obtain a separate permit. Any object or material of archaeological, prehistoric, or historic value or interest found in a cave on privately owned land is the property of the owner of the land. If a person uses a cave for recreational or scientific purposes with the prior consent of and without a charge by the owner and sustains an injury, the owner and an authorized agent of the owner acting within the scope of the agent’s authority are not liable for the injury. The Director and the Director’s designee may enforce the provisions of this part relating to archaeological historic property found in caves in the same manner as provided in § 5A-341(i) of this subtitle for submerged archaeological historic property.

If the Director or the Director’s designee takes any enforcement action under this subtitle against a permit holder, the permit holder shall be given an opportunity for a hearing before the Secretary. Subject to subsection (c) of this section, notice shall be given and the hearing shall be held in accordance with Title 10, Subtitle 2 of the State Government Article. The Director or the Director’s designee shall provide notice that a hearing will be held within 30 days after the enforcement action, unless a different period is agreed to by the parties.

The provisions of this subtitle that protect property on land under State control if it is submerged archaeological historic property, terrestrial archaeological historic property, or archaeological historic property in a cave may apply to similar historic property on privately owned land if: the owner asks the Trust in writing to apply the provisions to the property; and the Trust determines that the property is eligible for the Maryland Register of Historic Properties and deserves protection. Unless the State controls privately owned land by rights under a lease, option contract, or purchase contract, this subtitle does not: limit the use of the land by the owner or the owner’s guest; or require the owner or guest to hold a permit before conducting any activity on the land.

A person who violates § 5A-339, § 5A-341, § 5A-342, or § 5A-343 of this subtitle, or a regulation adopted under any of those sections is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 30 days or a fine not exceeding $1,000 or both. If a person is found guilty of a violation under paragraph (1) of this subsection, the court: may impose costs against the person; and on request by the Trust, may revoke any permit issued to the person under § 5A-340, § 5A-341, § 5A-342, or § 5A-343 of this subtitle. Each day on which a violation occurs is a separate violation. A person who violates any term of a permit issued under § 5A-341 of this subtitle for use of a submerged archaeological historic property for commercial salvage or other income-producing purpose is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 1 year or a fine not exceeding $10,000 or both. If a person is found guilty of a violation under paragraph (1) of this subsection, the court: may impose costs against the person; and on request by the Trust, may revoke the person’s permit. Each day on which a violation occurs is a separate violation. Materials and recorded information obtained in violation of § 5A-339, § 5A-341, § 5A-342, or § 5A-343 of this subtitle are subject to appropriation by the State and will be managed, cared for, and administered by the Trust.

In this part the following words have the meanings indicated. “Operating support” means money for necessary administrative, technical, or professional services, and related expenses. “Panel” means the Museum Assistance Review Panel. “Program” means the Historical and Cultural Museum Assistance Program.

This part applies to a museum in the State that: is organized on a nonprofit basis for essentially educational or preservation purposes; cares for tangible inanimate objects that the museum owns or uses; exhibits those objects to the public on a regular schedule; and interprets the State’s cultural heritage, history, natural history, or history of science and technology.

The General Assembly finds that: museums present, interpret, and preserve unusual and significant objects of the State’s heritage for the benefit, enjoyment, and education of the residents of the State; museums are unique and beneficial resources that supplement the State’s educational system; museums are repositories and caretakers of irreplaceable cultural objects for the benefit of today’s generation and generations yet to come; museums, including those located in small communities, play an important and cost-effective role in the State’s leisure time and tourism industry; it is not feasible or desirable to display the entire history and heritage of the State in a single facility at one location; the history and heritage of the State should be displayed and interpreted to the public where the history happened and the heritage arose, so that centers of community pride may be created and tourist activity may be dispersed throughout the State; and the public interest is served by helping museums to become more accessible and by helping residents of the State and visitors to understand the State’s diverse heritage. The General Assembly finds that the public interest is served by establishing a program of financial assistance to support the upgrade, care, research, interpretation, documentation, and display of the State’s irreplaceable museum collections.

There is a Historical and Cultural Museum Assistance Program of the Trust.

The purpose of the Program is to provide political subdivisions and nonprofit organizations with financial assistance for museums. The Program shall make grants from the MHT Grant Fund under § 5A-328 of this subtitle to political subdivisions and nonprofit organizations for use by museums for: research related to collections, exhibits, or other educational activities; the care, conservation, interpretation, and documentation of collections; the planning, design, and construction of exhibits; educational programs and projects; the development of master plans for museums, including activities required to achieve accreditation by the American Association of Museums or another appropriate entity; minor structural modifications to existing museum facilities; the development of plans and specifications and the provision of architectural, engineering, or other special services directly related to the construction or rehabilitation of museum facilities; or operating support for any museum-related activity, including activities described in items (1) through (7) of this subsection. On or before December 31 of each year, the Trust shall report to the Governor and, subject to § 2-1257 of the State Government Article, to the General Assembly on the financial status and the activities of the Program for the preceding fiscal year.

There is a Museum Assistance Review Panel in the Program. The Panel shall include as members: the President of the Senate or the President’s designee; and the Speaker of the House of Delegates or the Speaker’s designee. The Secretary shall appoint the other members of the Panel. Of the members that the Secretary appoints: one shall be a representative of the Executive Branch with functions related to the purposes of the Program; and the others shall fairly represent museums eligible for assistance under this part. The Panel shall: advise the Secretary and the staff of the Trust regarding Program policies and activities; review applications for grants under the Program and recommend approval or disapproval to the Secretary; and seek the advice and recommendations of the State Archivist in reviewing grant applications that relate in any part to the care and preservation of, or access to, archival material. The Panel shall recommend approval of a grant only after a competitive selection process.

The Trust shall administer the Program and coordinate the Program with federal, State, and private programs that complement or facilitate carrying out the Program. The Trust shall: survey the locations, resources, and needs of museums in the State; provide technical and general advisory assistance to museums that qualify or seek to qualify for grants under the Program; and encourage museums to develop long-range plans and to achieve accreditation by the American Association of Museums or another appropriate entity that accredits museums and helps them to meet professional standards.

The Trust may not make a grant to a museum that: is operated wholly or partly by the State; or has not existed as a nonprofit organization for at least 3 years before applying for the grant.

In any fiscal year, the Secretary may reserve up to 20% of the money available in the MHT Grant Fund under § 5A-328 of this subtitle for unanticipated projects eligible for assistance under § 5A-353 of this subtitle.

The Department shall adopt regulations to carry out the Program, including: application and review procedures; procedures for adequate public notice of assistance available under the Program; and selection standards that the Panel shall consider in reviewing applications for grants. Selection standards under subsection (a)(3) of this section include: the relative merits of the project or activities within identified statewide needs; the extent to which the appropriate political subdivision contributes to support the project; the potential for the project to stimulate increased tourism, museum attendance, or museum self-sufficiency; and other relevant factors, such as the extent to which the project helps achieve equal geographic distribution of grant assistance throughout the State.

A person may not knowingly make or cause to be made a material misstatement of fact in a statement or report in or regarding an application for a grant or affecting a grant already made. A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 2 years or a fine not exceeding $5,000 or both.

For fiscal year 2025 and each fiscal year thereafter, the Governor may include in the annual budget bill an appropriation of $5,000,000 to the Trust to fund grants under the Program.