§4–11A–05.

    (a)    This section applies to enterprise leases.

    (b)    (1)    The Department may issue an enterprise lease to a person for use in the waters of the State.

        (2)    The Department may not issue an enterprise lease for the purpose of cultivating a nonnative species, as defined in § 4–205.1 of this title.

        (3)    A person who wishes to obtain an enterprise lease shall:

            (i)    Complete and submit an application to the Department on a form the Department requires; and

            (ii)    Pay a nonrefundable application fee established by the Department in consultation with the Aquaculture Coordinating Council.

        (4)    An application for an enterprise lease shall include:

            (i)    A declaration that the applicant intends to actively use the leased area for assessing the feasibility of cultivating aquatic plants for commercial purposes; and

            (ii)    A proposed plan for active use of the lease that includes:

                1.    The species of aquatic plants to be cultivated;

                2.    The source of the aquatic plants to be cultivated;

                3.    The methods and means that the applicant will use to cultivate the aquatic plants;

                4.    The quantity of aquatic plants that the applicant expects to grow and harvest during the initial 3 years of the lease; and

                5.    A description of the labor, materials, and equipment to be used to cultivate the aquatic plants.

        (5)    The Department may:

            (i)    Deny an enterprise lease application for reasonable cause; or

            (ii)    Include any conditions in an enterprise lease.

    (c)    (1)    The term of an enterprise lease may not exceed 5 years.

        (2)    The size of an enterprise lease may not exceed 2 acres.

        (3)    The Department shall establish, in consultation with the Aquaculture Coordinating Council, an annual amount of rent for an enterprise lease.

    (d)    (1)    An enterprise lease may not be located:

            (i)    Within 50 feet of a shoreline or any pier without the written permission of the riparian owner at the time of initial application for the lease;

            (ii)    Within 150 feet of the public shellfish fishery or a registered pound net site;

            (iii)    Within 150 feet of an oyster harvest reserve area or any Yates Bar located in an oyster sanctuary;

            (iv)    Within 150 feet of a federal navigational channel;

            (v)    Subject to paragraph (2) of this subsection, in any creek, cove, bay, or inlet less than 300 feet wide at its mouth at mean low tide;

            (vi)    In an SAV Protection Zone; or

            (vii)    In a setback or buffer from the Assateague Island National Seashore established by the Department.

        (2)    The provisions of paragraph (1)(v) of this subsection do not apply to the riparian owner or a lawful occupant of the riparian property.

    (e)    (1)    An enterprise lease may not be assigned, transferred, or renewed.

        (2)    Any transfer or assignment of or attempt to transfer or assign an enterprise lease shall void the lease and the interest in the water column shall revert to the State without the necessity of any action by the State.

    (f)    (1)    A person with an enterprise lease in the waters of the State may cultivate aquatic plants in any manner approved by the Department.

        (2)    The Department may adopt regulations to implement this section, including regulations concerning species that may not be cultivated or gear that may not be used in a leased area.

    (g)    (1)    If the Department determines that an application for an enterprise lease meets the requirements of this section:

            (i)    The applicant for the lease shall mark the proposed area with a stake; and

            (ii)    The Department shall:

                1.    Advertise the application on the website of the Department for at least 2 consecutive weeks;

                2.    Notify the owners of property directly in front of the proposed activity; and

                3.    Notify other interested parties that the Department deems appropriate.

        (2)    (i)    Within 37 days after the first day that the notice of the enterprise lease application is posted on the Department’s website, a person may request a public informational meeting on the issuance of the lease.

            (ii)    The Department shall hold a public informational meeting on the issuance of an enterprise lease on the request of any person under subparagraph (i) of this paragraph.

        (3)    (i)    Within 37 days after the first day that notice of the enterprise lease is posted on the Department’s website, any person who has a specific right, duty, privilege, or interest that is different from that of the general public and may be adversely affected by the proposed lease may file a petition with the Department protesting the issuance of the lease.

            (ii)    The protest shall be heard in accordance with the requirements of the Administrative Procedure Act under Title 10, Subtitle 2 of the State Government Article.

            (iii)    Immediately after termination of the period prescribed in subparagraph (i) of this paragraph for filing a petition or after a final decision dismissing a protest, the Department shall issue an enterprise lease to the applicant.