HARRY HUGHES, Governor                              2893

8-704.

(A) (1) STATE COST SHARING IN ANY PROJECT MAY BE MADE
AVAILABLE FOR UP TO 87-1/2 PERCENT OF ELIGIBLE COSTS, NOT TO
EXCEED $5,000 IN ANY ONE PROJECT OR $10,000 FOR BEST
MANAGEMENT PRACTICES CARRIED OUT UNDER A POOLING AGREEMENT.

(2) STATE COST SHARING FUNDS MAY BE MADE
AVAILABLE FOR ANY PROJECT IF:

(I) THE DEPARTMENT OF AGRICULTURE, THE
SOIL CONSERVATION DISTRICT, AND A PERSON HAVE EXECUTED AN
AGREEMENT WHICH, AMONG OTHER THINGS, OBLIGATES THE PERSON TO
ESTABLISH, CONSTRUCT, OR INSTALL THE BEST MANAGEMENT
PRACTICE IN ACCORDANCE WITH TECHNICAL SPECIFICATIONS, TO
MAINTAIN THE BEST MANAGEMENT PRACTICE FOR ITS EXPECTED LIFE
SPAN AND TO SO BIND ANY SUCCESSOR IN TITLE, AND TO PROVIDE
THE REQUIRED MATCHING FUNDS FOR THE PROJECT;

(II) THE BOARD OF PUBLIC WORKS HAS GIVEN
APPROVAL TO THE PROJECT WHEN THE PROCEEDS OF STATE BONDS ARE
TO BE USED TO FINANCE THE STATE SHARE; AND

(III) THE SOIL CONSERVATION DISTRICT HAS
CERTIFIED TO THE DEPARTMENT THAT THE PROJECT MEETS ALL
APPLICABLE TECHNICAL STANDARDS, AND THAT ALL SUBMITTED
INVOICES PROPERLY REPRESENT ELIGIBLE COSTS.

(3) BEFORE THE DEPARTMENT OF AGRICULTURE
EXECUTES A COST SHARING AGREEMENT WITH A FARM TENANT, IT
SHALL OBTAIN THE CONSENT OF THE LANDLORD TO THE TERMS AND
CONDITIONS OF THE AGREEMENT. THE DEPARTMENT MAY ALSO
REQUIRE THE GRANTING TO THE STATE OF AN APPROPRIATE SECURITY
INTEREST IN ANY EQUIPMENT, STRUCTURES OR SIMILAR ITEMS
PURCHASED WITH STATE MONEYS.

(4)  A COST SHARING AGREEMENT EXECUTED AS

REQUIRED UNDER THIS SUBTITLE MAY BE ASSIGNED AND TRANSFERRED
TO A SUCCESSOR IN TITLE OF ALL OR PART OF A TRACT OF LAND
SUBJECT TO A BEST MANAGEMENT PRACTICE.

(5) A MEMORANDUM OF THE COST SHARING AGREEMENT
SHALL BE RECORDED IN EACH COUNTY WHERE THE LAND IS LOCATED
UNDER SECTIONS 3-102 AND 3-103 OF THE REAL PROPERTY ARTICLE
OF THE CODE. THE COST OF RECORDATION SHALL BE CONSIDERED AN
ELIGIBLE COST UNDER THIS SUBTITLE.

(6) STATE GENERAL FUNDS MAY NOT BE USED AS COST
SHARING FUNDS UNDER THIS SUBTITLE.

(B) STATE COST SHARING FUNDS SHALL BE DISBURSED, UPON
WARRANT OF THE COMPTROLLER, ONLY AFTER THE DEPARTMENT HAS
DETERMINED THAT THE BEST MANAGEMENT PRACTICE HAS BEEN
ESTABLISHED OR IN THE CASE OF EQUIPMENT, STRUCTURES, OR
SIMILAR ITEMS, THAT IT HAS BEEN RECEIVED AND PROPERLY