In this subtitle the following words have the meanings indicated. “Authority” means the Maryland Food Center Authority. “Bond” means a bond, note, or any other obligation issued under this subtitle. “Center” means the Maryland Food Center. “Costs”, with respect to a development or project, means: the purchase price; the cost of any property, right, easement, and franchise considered necessary to construct and establish a development or project; the cost of relocation of wholesale food dealers or tenants under § 10–212 of this subtitle; the cost of labor, materials, and equipment, including expenses of relocating public utility facilities under § 10–210 of this subtitle; financing charges; interest before and during construction; the cost of revenue and cost estimates, engineering, architectural, and legal services, plans, specifications, surveys, and other expenses necessary or incident to determining the feasibility or practicability of the construction of a development or project; administrative expenses; and other expenses necessary or incident to: the financing of a development or project; constructing and establishing a development or project; and placing a development or project into operation. “Development” means: the Center; a commercial seafood development; and any other multiproject food–related or agriculturally related real estate development that the Authority undertakes to further the purposes of this subtitle. “Food” means agricultural and other edible food products and floricultural and horticultural products. “Food” includes the following: butter; cheese; eggs; fruits; meats; meat products; poultry; seafood; and vegetables. “Food” may be in packaged or fresh form. “Food” shall be liberally construed. “Improve” means to add, alter, construct, equip, expand, extend, improve, install, reconstruct, rehabilitate, remodel, or repair. “Improvement” means addition, alteration, construction, equipping, expansion, extension, improvement, installation, reconstruction, rehabilitation, remodeling, or repair. “Project” means a facility, operation, or portion of a development that the Authority undertakes to further the purposes of this subtitle. “Project” includes: a market; a food handling, processing, storage, or distribution facility; and a commercial seafood facility or operation; a facility or service ancillary or appurtenant to a development or a project that the Authority determines will enhance the public convenience or attractiveness of the development or project, including: a bank; a parking or other transportation facility; a restaurant; a store; and any other commercial enterprise; land, structures, equipment, furnishings, rail or motor vehicles, barges, and boats in a development or project; property and rights in a development or project; and land and facilities that are functionally related to a development or project.

This subtitle shall be liberally construed to accomplish its purposes. The establishment of developments and projects under this subtitle is: for the benefit of the residents of the State and its political subdivisions; and a public purpose.

A development or project under this subtitle may not include the development of an aquaculture development or project for the commercial raising of finfish, shellfish, or aquatic plants.

The General Assembly finds that: the marketing of food is a matter of public interest and the maintenance of wholesale market places is and has always been recognized as a public function; public health and safety are adversely affected by the unsafe, obsolete, and unsanitary conditions of existing food markets; the vast quantities of food and related food products brought annually from all parts of the United States into the wholesale markets in the State must pass through market facilities that are obsolete and inadequate to meet present needs; the scattered locations of and difficulty of access to wholesale markets constitute an economic loss, and the obsolescence of markets is responsible for much of the high cost of food handling and for deterioration that takes place both in the wholesale markets and between the markets and the consumer’s doorstep; modern consolidated facilities would result in an annual saving; and there is a need for a consolidated wholesale food market in the State, and, in spite of this need, efforts on the part of the State, the City of Baltimore, the wholesale food trade, growers, and the transportation industry have failed to effect the consolidation of wholesale markets satisfactorily; constructing, operating, and maintaining wholesale markets, and in particular a consolidated market for the State, would require the expenditure of a large sum of money; and the financial systems of the political subdivisions of the State are not designed to undertake projects described under item (i) of this item on a nonprofit, self–liquidating basis, and the best method of creating a market is to establish and authorize a market authority as a public corporation to: acquire land for a market development; construct and operate a market development; and make loans to and otherwise assist persons engaged in the wholesale food industry who want to locate in a market development; it is in the public interest to: eliminate or correct the conditions described in item (1) of this subsection regarding the marketing of food; and establish an economical and modern method of marketing wholesale food in the State by constructing a modern, sanitary, and accessible market development that may include: warehouse facilities used by wholesalers or retailers principally engaged in the sale of food and used for storage of food and beverages and nonfood products sold from time to time in connection with the sale of food at retail; and any ancillary or appurtenant facility that the Authority determines will enhance the public convenience or attractiveness of the market development including: a bank; a parking or other transportation facility; a restaurant; a store; or any other commercial enterprise; and there exists a need and the opportunity to capitalize on the vast resources of finfish and shellfish that can be found in the State’s coastal waters; development of the seafood industry on the Eastern Shore could: provide an opportunity for the State to capitalize on these resources; create new jobs; and produce other economic benefit to the State; a centralized seafood project is needed for the development of these resources and resulting economic benefit; and the development of the project and these resources would be in the public interest and can best be accomplished through the Authority. The General Assembly finds that it is desirable that, when sufficient revenue will be derived from the operation of a project or development to amortize its cost within a reasonable period, the cost be defrayed if practicable by issuing bonds or other debt instruments payable from the revenue derived from project operations.

There is a Maryland Food Center Authority. The Authority is a body politic and corporate and an instrumentality of the State. The exercise by the State, a political subdivision of the State, or the Authority of a power under this subtitle is the performance of an essential governmental function. The Authority consists of 12 members. Each member shall be a resident of the State. One member shall reside in Howard County. Of the 12 members: four shall be ex officio members: the Director of Agricultural Extension; the Comptroller; the Secretary of Agriculture; and the Secretary of General Services; and eight shall be outstanding residents appointed by the Governor with the advice and consent of the Senate. The term of an appointed member is 5 years. At the end of a term, an appointed 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. Thirty days after giving written notice to the member, the Governor may remove an appointed member for inefficiency, neglect, or misconduct. The member is entitled to a hearing before the Governor, if a written request for a hearing is made to the Governor no later than 10 days after receiving the notice. If a member is removed, the Governor shall promptly appoint a successor. From among its members, the Authority shall elect a chair and a vice chair. The Authority shall elect a secretary–treasurer who need not be a member of the Authority. The Authority shall meet at least quarterly. At least 10 days before each meeting, written notice of the meeting shall be given to each member of the Authority. Seven members of the Authority are a quorum. A majority vote of the members present at a meeting having a quorum is needed for the Authority to act. An ex officio voting member may designate another individual to vote in that member’s absence. The Authority may pay an appointed member up to $1,000 a year on a per diem basis for services. A member of the Authority is entitled to reimbursement for expenses under the Standard State Travel Regulations. Reimbursement and compensation under this subsection may only be paid from money provided under this subtitle. The Authority shall adopt rules and regulations necessary for the conduct of its affairs.

The Authority may employ or retain officers, staff, and agents, including engineering, architectural, fiscal, and construction experts and attorneys, and set their compensation.

Except as otherwise provided in this subtitle, the Authority: is not subject to the following provisions of the State Finance and Procurement Article: Title 2, Subtitles 4 (Water and Sewerage Systems) and 5 (Facilities for the Handicapped); Title 4, Subtitles 7 (State Board of Architectural Review) and 8 (Energy); §§ 5A–304 and 5A–305 (Historic Landmarks; certain architectural easements); § 7–114.1 (Archeological Costs); §§ 8–127, 8–128, and 8–129 (Certain Restrictions on State General Obligation Debt); Part V of Title 8, Subtitle 1 (State Revenue Anticipation Notes); Title 10 (Board of Public Works – Miscellaneous Provisions); and Division II of the State Finance and Procurement Article (General Procurement Laws); and may construct developments and projects without obtaining the consent of any other unit of State government and without any proceeding, the satisfaction of any condition, or the occurrence of any event. In carrying out its duties relating to developments and projects, the Authority shall comply with Title 14, Subtitle 3 of the State Finance and Procurement Article (Minority Business Participation). The Authority shall take affirmative steps to include minority businesses in its markets to at least the same extent as applicable to a procurement subject to Title 14, Subtitle 3 of the State Finance and Procurement Article. A development or project is subject to applicable State health laws and regulations of the Secretary of Health and the Secretary of the Environment. A development or project is subject to all zoning and subdivision regulations of the political subdivision in which the development or project is located.

The money of the Authority may be invested. Any income from the investment of money of the Authority shall be credited to the Authority.

The Authority may: sue and be sued; adopt a seal; acquire, hold, and dispose of property for its corporate purposes; sell, lease, or otherwise convey, in any manner that the Authority considers appropriate, any property it owns to accomplish the purposes of this subtitle; enter into contracts and leases, including contracts or leases relating to the construction, operation, maintenance, management, and use of developments and projects, concessions, stalls, auction houses, docking facilities, and other facilities, and execute any instrument necessary or convenient, on the terms and for any corporate purpose that the Authority considers advisable; issue bonds in accordance with this subtitle; use the proceeds of the bonds, other money available under this subtitle, or any grant or money from the State or federal government or any of their units or instrumentalities to accomplish the purposes of this subtitle; borrow money for a corporate purpose and mortgage or otherwise encumber its property as security for the loan; accept gifts, contributions, or loans of money, supplies, goods, and services, and accept appropriations, allotments, and loans of money from the State or federal government, a federal corporation, a unit or instrumentality of the federal government, or a political subdivision or instrumentality of the State; exercise a power usually possessed by a private corporation in performing similar functions unless to do so would conflict with State law; dredge approaches and acquire, construct, maintain, equip, and operate wharves, docks, piers, and other structures, and any facilities necessary for commerce; and do all things necessary or convenient to carry out the powers expressly granted by this subtitle. Subject to paragraph (2) of this subsection, the Authority may delegate any power or duty it considers appropriate to a member, an officer, an agent, or an employee of the Authority. A contract is not binding on the Authority unless it is approved or authorized by a majority of the members of the Authority.

Subject to subsection (b) of this section, the Authority may adopt rules and regulations relating to: the use of streets, alleys, driveways, and docking slips on the Authority’s property; the establishment of parking areas on the Authority’s property; and the safety and welfare of persons using the Authority’s property. The rules and regulations that the Authority adopts may not be inconsistent with the laws governing the political subdivision in which a development is located.

The Authority may acquire in its own name property, franchises, and licenses by: purchase on terms and conditions and in the manner the Authority considers appropriate; or condemnation for public use in accordance with applicable law. If the Authority considers it expedient to establish or construct a development or project on any land, street, alley, or public place that is owned by a political subdivision, the political subdivision may: lease the land, street, alley, or public place to the Authority on terms agreed to by the Authority and the political subdivision; or convey title to the land, street, alley, or public place to the Authority on payment to the political subdivision of the reasonable value of the property, as determined by the Authority and the political subdivision, in cash or bonds of the Authority at par. Notwithstanding paragraph (1) of this subsection, a political subdivision may lease or convey to the Authority without consideration any property that is owned by the political subdivision and suitable for use by the Authority for the purposes of this subtitle. A lease or conveyance under this paragraph requires approval by the political subdivision or, for Baltimore City, by the Board of Estimates. Before an acquisition under this subsection, the Authority, on request of a political subdivision, shall remove or relocate at the expense of the Authority any public utility facilities, whether publicly or privately owned or operated, located on the property. The Authority may not acquire a site under this section for the establishment or construction of a development, or establish or construct a development on a site, unless the site is approved: for Baltimore City, by the Board of Estimates; and for any other political subdivision, by the county commissioners, county executive, or in a charter county without a county executive, the county council, or in a municipal corporation, by its governing body. The Authority need not accept and pay for any property or rights it acquires except from money provided under this subtitle.

The Authority may: develop, establish, acquire, improve, own, operate, and maintain developments and projects in the State; and pay the cost of developments or projects, including improvements to any waterways at a development or project, from: the proceeds of bonds; other money available under this subtitle; or money from the State or federal government or any of their units or instrumentalities. Construction of a development may not begin unless a comprehensive study establishes that the construction and operation of the development would be economically and environmentally sound. Except for the Center, construction of a development may not begin unless: an analysis of the economic benefits of the proposed development is submitted to the Legislative Policy Committee, in accordance with § 2-1257 of the State Government Article; and the Legislative Policy Committee is given 45 days after receipt to comment on the proposal. This subsection does not apply to facilities constructed on land leased or sold by the Authority to a private entity. Before contracting to construct a facility at a development or project, the Authority shall solicit sealed bids. All plans and any issue of bonds to finance a development or project require approval by the Board of Public Works by resolution before the bonds are sold. All leases of real property and plans and contracts for the acquisition conveyance of real property require approval by the Board of Public Works.

The Authority may assist wholesale food dealers and tenants who want to locate or relocate their operations in a development or project if, in the judgment of the Authority: the wholesale food dealers and tenants will provide the greatest opportunity of success for a development or project; and the cost of the assistance is the most likely to be recouped. To assist a wholesale food dealer or tenant, the Authority may: acquire, by negotiation and purchase, the land, structures, equipment, or leases, or an interest in them, of the wholesale food dealer or tenant; and pay the reasonable expenses of moving personal property that must be moved to locate or relocate the operations of the wholesale food dealer or tenant in a development or project.

The Authority may: fix and collect rates and charges for the use of the facilities of a development or project; establish the terms and conditions for the use of the facilities; and contract with a person for the person’s use of the facilities of a development or project. The rates and charges under subsection (a) of this section shall be fixed and revised to provide appropriate revenues from a development or project, as the Authority determines. The rates and charges under subsection (a) of this section are not subject to supervision or regulation by any other unit of the State or a political subdivision.

A political subdivision in which a development or project is located may: vacate any street, alley, or other public place necessary to ensure the proper operation of the development or project and the full use of its facilities; and grant to the Authority the exclusive right to use the vacated street, alley, or other public place for the purpose of the development or project on terms agreed to by the Authority and the political subdivision.

Subject to the terms and conditions agreed to by the Authority and the State or the political subdivision, the State or a political subdivision in which a development or project is located may provide for: cleaning the development or project; and removing and disposing of refuse from the development or project.

“Person” has the meaning stated in § 9-101 of this article. “Person” also includes a public or quasi-public corporation. Subject to subsection (c) of this section, the Authority may provide financing to a person to accomplish the purposes of this subtitle: on property that is owned or otherwise held or controlled by the Authority or the State; or on, under, or in property that is owned or otherwise held or controlled by any other person. This subsection does not apply to an expenditure of money: in connection with the acquisition of property or the preparation of plans; to the employment of staff of the Authority; or for other matters that customarily are preliminary to the commencement of construction. If the Authority provides financing to a person to accomplish the purposes of this subtitle, the Authority may not expend any bond proceeds to acquire or improve a facility until the Authority, with the approval of the Board of Public Works, has entered into a binding contract with the person. The contract shall: be secured to the satisfaction of the Board of Public Works; and require the person to pay to the Authority or its designee: the principal of and interest on bonds sold under this subtitle as they become due; any fiscal agency charges for paying principal and interest; any charges or fees set by the Authority for its administrative costs and expenses; and any premium on bonds retired by call or purchased as provided in this subtitle. The Authority may charge to and equitably apportion between persons financed by the Authority under this section all or part of the Authority’s administrative costs and expenses incurred in exercising its powers and performing its duties under this subtitle. If property is transferred by the Authority to a person financed under this section, the person shall pay any State and local property taxes that accrue after the transfer.

The Authority may authorize the issuance of federally tax-exempt or federally taxable revenue bonds by resolution. The Authority may issue revenue bonds: to pay any part of the cost of developments or projects; to fund a deficit in accordance with subsection (i) of this section; to pay the cost of improvements of developments or projects in accordance with subsection (j) of this section; to refund outstanding bonds issued under this subtitle; and for any other purpose set forth in this subtitle. The Authority may issue the bonds at one time or in one or more series from time to time. The Authority shall determine: the dates of the bonds; the maturity dates of the bonds, which may not exceed 40 years from the date of their issue; the interest rates on the bonds; the medium of payment of the principal of and interest on the bonds; interest payment dates on the bonds, which shall occur twice in every 12 months; the form of the bonds; the manner of executing the bonds; the denominations of the bonds; and the places at which the principal of and interest on the bonds will be payable, including a bank or trust company in or outside the State. The bonds may be redeemed before maturity at the option of the Authority at the prices and under terms and conditions that the Authority sets before the bonds are issued. An officer’s signature or facsimile on a bond remains valid even if the officer leaves office before the bond is delivered. The Authority shall sell the bonds either by competitive or negotiated sale in a manner and for a price that the Authority determines to be in its best interests. The bonds are exempt from §§ 8-206 and 8-208 of the State Finance and Procurement Article. Before it prepares definitive revenue bonds, the Authority may issue temporary revenue bonds meeting the requirements of this section that are exchangeable for definitive revenue bonds when issued. The Authority may replace bonds that are mutilated, lost, or destroyed. The Authority may issue replacement bonds or bonds exchanged for temporary revenue bonds without: another proceeding; or the satisfaction of any other condition. If the proceeds of the bonds are less than the amount required for the purpose for which the bonds were authorized, the Authority may issue additional bonds to fund the amount of the deficit. Unless otherwise provided in the resolution authorizing the issuance of bonds or in the trust agreement, the additional bonds are: considered to be of the same issue as the first issue; and entitled to payment from the same funds as the first issue, without preference or priority of the bonds of the first issue. The resolution authorizing the issuance of bonds may provide for the issuance of additional bonds to pay the cost of any necessary improvements. The additional bonds: may be limited in amount by the resolution or trust agreement; shall be considered part of the first issue authorized by the resolution; and shall be issued under the restrictions and limitations provided by the resolution or trust agreement.

Bonds are securities: in which any of the following persons may legally and properly invest money, including capital that the person owns or controls: an officer or unit of the State or a political subdivision; a bank, trust company, savings and loan association, investment company, or other person conducting a banking business; an insurance company, insurance association, or other person conducting an insurance business; a personal representative, guardian, trustee, or other fiduciary; and any other person; and that may be deposited with and received by a unit of the State or a political subdivision for any purpose for which the deposit of bonds or other obligations of the State is authorized by law.

A bond is not a debt or a pledge of the faith and credit of the State or a political subdivision, and is payable solely from development or project revenues as provided in accordance with this subtitle. Each bond shall state on its face that the Authority, the State, and a political subdivision of the State are not obliged to pay the principal of or interest on the bond except from the development or project revenues pledged to the payment of the bond.

The Authority may secure a bond by a trust agreement between the Authority and a corporate trustee. A corporate trustee may be any trust company or bank that has the powers of a trust company in or outside the State. The trust agreement or the resolution that provides for the issuance of a bond may: provide for the protection and enforcement of rights and remedies of bondholders, including covenants setting forth the duties of the Authority in relation to: acquisition, improvement, maintenance, operation, and insurance of the development or project; and custody, safeguarding, and application of money; provide for the rights and remedies of bondholders and of the trustee; restrict the individual right of action by bondholders as is customary in trust agreements securing bonds of corporations; provide for the deposit of the proceeds of the sale of bonds and the revenue of a development or project with an officer, board, or depositary that the Authority designates as custodian; and provide for the method of disbursing the proceeds and revenues with safeguards and restrictions that the Authority determines. Except as provided in paragraph (2) of this subsection and § 10-222 of this subtitle, a trust agreement may pledge or assign revenues to be received from the development or project. No portion of a development or project may be conveyed or mortgaged without the express consent of the Board of Public Works. The trust agreement may authorize the use of money realized from the sale or disposition of any of the property of a development or project to pay principal of and interest on the bonds. Expenses incurred in carrying out a trust agreement may be treated as part of the cost of maintenance, repair, and operation of a development or project. A bank or trust company incorporated in the State may act as a depositary of the proceeds of the bonds or the revenues and furnish indemnity bonds or pledge securities as required by the Authority.

The Authority shall apply the proceeds of the bonds for the purposes for which the bonds are authorized. The Authority shall set aside a sufficient amount of the revenues derived from a development or project in a sinking fund or other similar fund at regular intervals to the extent required in the trust agreement or resolution. The sinking fund is pledged to paying: the principal of and the interest on the bonds as they become due; and the redemption or purchase price of bonds retired by call or purchase as specified in the trust agreement or resolution. To the extent provided in the trust agreement or resolution, the Authority may exclude from the amount to be deposited in the sinking fund the revenues that may be necessary or convenient: to pay for maintenance, repair, and operation of a development or project; for reserves; and for improvements to a development or project. The lien of the pledge of revenues under subsection (b) of this section is valid and binding from the time the pledge is made. The lien of the pledge is valid and binding against each party with a claim against the Authority in tort, contract, or otherwise, regardless of whether the party has notice of the lien.

The Authority may authorize the issuance of a single issue of revenue bonds by resolution for the combined purposes of: paying the cost of improvements of developments or projects; and refunding bonds.

Except to the extent rights granted by this subtitle are restricted by resolution passed before the issuance of the bonds or by the trust agreement, a holder of a bond issued under this subtitle, or of any attached coupons, or a trustee under a trust agreement may sue to: protect and enforce a right under the laws of this State, the resolution, or the trust agreement; and enforce the performance of duties by the Authority, the State, or a political subdivision or officer or any of them that this subtitle or the trust agreement requires, including fixing, charging, and collecting of rates and charges to use facilities that are subject to the resolution or trust agreement.

The Authority may pledge or assign: any of its revenues; its rights to receive its revenues; money or securities in accounts established to secure a bond; or a lien or security interest granted or assignment made to the Authority. A pledge or assignment under subsection (a) of this section is valid and binding from the time the pledge or assignment is made. A lien, security interest, or assignment under subsection (a) of this section: attaches immediately to the revenues or property pledged and then received by the Authority, without any physical delivery or further act; and is valid and binding against any person having a claim against the Authority, regardless of whether the person has notice of the pledge, and without the recording or filing of an instrument.

Subject to § 10-217(e) of this subtitle, the Authority is exempt from taxation or assessments on any part of a development or project, the Authority’s activities in operating and maintaining a development or project, and revenues from a development or project. The bonds of the Authority, including the interest on the bonds, are forever exempt from State and local taxes.

The Legislative Auditor may conduct a fiscal and compliance audit of the accounts and transactions of the Authority as provided in § 2–1220 of the State Government Article.

Each year, the Authority shall submit a report to the Governor and, in accordance with § 2-1257 of the State Government Article, the General Assembly. The report shall include a financial statement covering the operations of developments during the preceding fiscal year.

This subtitle may be cited as “The Maryland Food Center Authority Act”.