ROBERT L. EHRLICH, JR., Governor

Ch. 550

person who provided the money to be used for documented tree planting in the same
county or watershed beyond that required by this subtitle or other applicable

statutes.

[(e)] (F) (1) (I) Money deposited in the Fund under subsection [(b)] (C) of
this section may only be spent on reforestation and afforestation, including site
identification, acquisition, and preparation, and may not revert to the General Fund
of the State.

(II) ANY INVESTMENT EARNINGS OF THE FUND MAY NOT BE
TRANSFERRED OR REVERT SHALL BE CREDITED TO THE GENERAL FUND OF THE
STATE, BUT SHALL REMAIN IN THE FUND.

(2) (i) Except as provided in subparagraph (ii) or (iii) of this
paragraph, the reforestation or afforestation requirement under this subsection shall
occur in the county and watershed in which the project is located.

(ii) If the reforestation or afforestation cannot be reasonably
accomplished in the county and watershed in which the project is located, then the
reforestation or afforestation shall occur in the county or watershed in the State in
which the project is located.

(iii) If the reforestation or afforestation cannot be reasonably
accomplished in the county or watershed in which the project is located, then the
reforestation or afforestation shall be accomplished through purchase of credits in,
establishment, or maintenance of a forest mitigation bank in accordance with
regulations of the Department. The Reforestation Fund may not be used to finance
administrative activities associated with a mitigation bank and any credits created by
the Reforestation Fund may not be sold to compensate for additional forest impacts.

[(f)] (G) Money deposited in the Fund under subsection [(c)] (D) of this
section may be used by the Department for the purpose of implementing this subtitle.

[(g)] (H) In lieu of a State Forest Conservation Fund, any local authority with
an approved forest conservation program may establish a forest conservation fund, to
be administered by the local authority, to allow a payment by any person who has
demonstrated to the satisfaction of the local authority that the requirements for
reforestation and afforestation on-site and off-site cannot be reasonably
accomplished. The rate shall be 10 cents per square foot of the area required to be
replanted.

[(h)] (I) Money deposited in the local forest conservation fund under
subsection [(g)] (H) of this section shall remain in the fund for a period of 2 years or
3 growing seasons. At the end of that time period, any portion that has not been used
to meet the afforestation or reforestation requirements shall be returned to the
person who provided the money to be used for documented tree planting in the same
county or watershed beyond that required by this subtitle or other applicable
statutes.

[(i)] (J) (1) (I) Money deposited in the local forest conservation fund under
subsection [(g)] (H) of this section may only be spent on reforestation and

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