2152

LAWS OF MARYLAND

Ch. 615

(a) There is a "Shore Erosion Control Construction
Loan Fund." The Department shall administer the Fund solely
to provide interest-free loans to persons, municipalities,
or counties for construction of shore erosion structures.
The Fund shall be maintained by:

(1)   Repayments of principal on loans made from
the Fund, with the repayments made through a special real
estate tax the State levies on privately owned property
benefited by shore erosion control projects. The tax shall
compensate the State for net project construction cost. The
tax [may] SHALL be levied at a uniform rate over a period
not exceeding 25 years[, as the State and the property owner
agree]; and

(2)   Annual appropriation of general funds to
restore the Fund to a level sufficient to carry out an
effective shore erosion control construction loan program
during the succeeding year.

A property owner whose project is approved is eligible
to receive an interest-free loan covering 100 percent of
the first [$40,000] $50,000 of project construction cost, 50
percent of the next $20,000 of project construction cost, 25
percent of the next $20,000 of project construction cost,
and 10 percent of the part of construction cost exceeding
[$80,000] $90,000. However, where two or more property
owners are included within a shore erosion control project,
and project construction costs exceed [$80,000] $100,000,
the land of each property owner is considered a separate
shore erosion project for the purpose of computing net
project construction cost under this formula.

[(c) When the department approves a shore erosion
control project and signs an appropriate agreement with the
owner of the benefited property, stipulating how the State
will be reimbursed for net project construction costs, the
department shall proceed, within budgetary limitation, to
construct the project. On satisfactory completion of
construction, any property owner's cash contribution shall
be indorsed to the credit of the contractor. The Fund shall
pay the balance of the payment due the contractor. Within
30 days thereafter, the department shall certify to the
Board of Public Works payment of the construction costs and
transmit a copy of the agreement specifying how the State
will be reimbursed for the net project construction cost.
The Board of Public Works shall levy a special tax,
beginning in the next fiscal year, on the benefited property
in conformity with this agreement.]

SECTION 2. AND BE IT FURTHER ENACTED, That Section(s)
8-1005(d) and (e), respectively, of Article - Natural
Resources, of the Annotated Code of Maryland be renumbered
to be Section(s) 8-1005(e) and (f), respectively.