In this subtitle the following words have the meanings indicated. “Authority” means a corporation incorporated in accordance with this subtitle to act as a local redevelopment authority in accordance with criteria set by the United States Department of Defense or its military services under the federal Defense Base Closure and Realignment Act of 1990. “Authority” does not include: Bainbridge Development Corporation; or Holabird Working Group/Baltimore Development Corporation (BDC). “Board” means the Board of Directors of an authority. “Bond” means a bond or note issued on behalf of an authority under this subtitle. “Bond” includes: a bond anticipation note; a revenue anticipation note; a grant anticipation note; a refunding bond; a note in the nature of commercial paper; and any other evidence of indebtedness issued on behalf of the authority, whether a general or limited obligation of the authority. “Cost” includes: the purchase price of a project; the cost to acquire any right, title, or interest in a project; the amount to be paid to discharge each obligation necessary or desirable to vest title to any part of a project in the authority or other owner; the cost of any improvement; the cost of any property, right, easement, franchise, and permit; the cost of labor and equipment; financing charges; interest before and during construction and, if the authority determines, for a limited period after the completion of construction; reserves for principal and interest and for improvements; the cost of revenue estimates, engineering and legal services, plans, designs, specifications, surveys, investigations, demonstrations, studies, estimates of cost, and other expenses necessary or incident to determining the feasibility of an acquisition or improvement; administrative expenses; and other expenses necessary or incident to: financing a project; acquiring and improving a project; placing a project in operation, including reasonable provision for working capital; and operating and maintaining a project. “Finance” includes refinance. “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. “Person” has the meaning stated in § 9-101 of this article. “Person” also includes a political subdivision. “Project” means an undertaking to establish economic activity under this subtitle on property to be conveyed to an authority by the United States Department of Defense or a military service, whether or not a facility or property used or useful in connection with the undertaking: is or will be used for profit or not for profit; is located on a single site or multiple sites; or may be financed by bonds, the interest on which is exempt from taxation under federal law. “Project” includes: property and rights related to the property, appurtenances, rights-of-way, franchises, and easements; structures, equipment, and furnishings; property that is functionally related and subordinate to the project; and patents, licenses, and other rights necessary or useful in the improvement or operation of a project. “Revenues” means the income, revenue, and other money an authority receives from or in connection with a project. “Revenues” includes grants, rentals, rates, fees, and charges for the use of the services furnished or available.

The General Assembly finds that: the economy of the State and its local governments will be greatly impacted by the closure or realignment of any military installation through any base realignment or closing action; although a closure or realignment will result in economic contraction and dislocation, it also affords opportunities to expand productive employment and expand the State’s economy and tax base; for this reason, the General Assembly enacted the Maryland Military Installation Strategic Planning Council Act; and the establishment of State–chartered public corporations to develop military installations slated for closure or realignment in the State would: serve the public interest; complement existing State marketing programs administered by the Department through: its Division of Business Development; and financial assistance programs such as those of the Maryland Economic Development Assistance Authority and Fund and the Maryland Industrial Development Financing Authority; and serve as an additional means to achieve the mission of the Maryland Military Installation Council. The General Assembly intends that: an authority structure its projects to accelerate the transfer of facilities and sites from the federal government into productive reuse of the facilities and sites to maximize economic opportunities for the residents of the State; and this subtitle be a template for the structure, authorization, and operation of each authority accepted by the Office of Economic Adjustment of the United States Department of Defense to perform the tasks required when land is transferred from the federal government to an authority in accordance with the federal Defense Base Closure and Realignment Act of 1990.

This subtitle is self-executing and fully authorizes the Secretary to create a local redevelopment authority.

The Secretary shall execute and file proposed articles of incorporation of an authority with the State Department of Assessments and Taxation. The proposed articles of incorporation shall state: the name of the authority; that the authority is formed under this subtitle; the names, addresses, and terms of office of the first members of the Board of the authority; the location of the principal office of the authority; the purposes for which the authority is formed; and the powers of the authority, subject to the restrictions or limitations on the powers of the authority under this subtitle. Acceptance of the articles for record by the State Department of Assessments and Taxation is conclusive evidence of the formation of the authority. The Board may amend the articles of incorporation. Any amendment to the articles of incorporation shall be filed with the State Department of Assessments and Taxation.

An authority is a body politic and corporate and is an instrumentality of the State once the State Department of Assessments and Taxation accepts the articles of incorporation for record. The exercise by an authority of a power under this subtitle is the performance of an essential governmental function.

A Board of Directors shall manage the affairs of the authority and exercise all of the powers of the authority. The Board consists of the following members: as ex officio members: the Secretary, or the designee of the Secretary; the Secretary of General Services, or the designee of the Secretary of General Services; the Secretary of Planning, or the designee of the Secretary of Planning; and the president of the military alliance of each county in which the facility is located; if the facility is located in one county, the executive director, or equivalent officer, of the county economic development unit and two other members appointed by the governing body of the county in which the facility is located; or if the facility is located in more than one county, the executive director, or equivalent officer, of the economic development unit of each county and one other member appointed by the governing body of each county; and as nonvoting, ex officio members: the Executive Director of the Maryland Economic Development Corporation; the Executive Director of the authority; and the Director of Transitional Services of the Maryland Department of Human Services. The term of a member of the Board appointed under subsection (b)(2) of this section is 4 years. The terms of appointed members shall be staggered. At the end of a term, a member continues to serve until a successor is appointed. A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed.

From among its members, the Board shall elect a chair, a vice chair, and a treasurer.

A majority of the voting Board members serving at the time is a quorum.

The Board shall establish a finance committee. The treasurer of the Board chairs the finance committee and oversees the finances of the authority. The Board may establish other committees as appropriate. The membership of a committee may include individuals who are not Board members.

The Board shall appoint the Executive Director of the authority. The Executive Director serves at the pleasure of the Board. The Board shall determine the salary of the Executive Director. The Executive Director is the chief operating officer of the authority. The Executive Director shall manage the administrative affairs and technical activities of the authority in accordance with policies and procedures that the Board establishes. The Executive Director shall: attend all meetings of the Board; act as secretary to the Board; keep minutes of the proceedings of the Board; approve salaries, per diem payments, allowable expenses of the authority and its employees or consultants, and any expenses incidental to the operation of the authority; and perform the other duties that the Board directs in carrying out this subtitle.

The Board shall approve additional professional and clerical staff as necessary to carry out this subtitle. The Board may retain accountants, engineers, lawyers, financial advisors, or other consultants as necessary to carry out this subtitle.

Except as otherwise provided in this section, in exercising its corporate powers, the authority: may carry out its corporate purposes without obtaining the consent of any State unit; and is not subject to the following provisions of the State Finance and Procurement Article: Title 2, Subtitles 2 (Gifts and Grants), 4 (Facsimile Signatures and Seals), and 5 (Facilities for Handicapped); Title 3 (Budget and Management); Title 4 (Department of General Services); Title 6, Subtitle 1 (Studies and Estimates); Title 7, Subtitles 1 (State Operating Budget), 2 (Disbursements and Expenditures), and 3 (Unspent Balances); Title 8, Subtitle 1 (General Obligation Debt); Title 10 (Board of Public Works – Miscellaneous Provisions); and Division II (General Procurement Law). The authority and its committees are subject to the Open Meetings Act. The authority is subject to the Public Information Act. The officers and employees of the authority are subject to the Maryland Public Ethics Law. The officers and employees of the authority are not subject to: Division II of the State Personnel and Pensions Article; or the provisions of Division I of the State Personnel and Pensions Article that govern the State Personnel Management System. The authority is subject to the same State and local regulations and regulatory requirements as any private corporation. A project of the authority is subject to the zoning and subdivision regulations of the political subdivision where the project is located.

The authority shall establish a system of financial accounting, controls, audits, and reports. The fiscal year of the authority begins on July 1 and ends on the following June 30.

The authority may establish any accounts that it requires. The authority shall deposit its money into a State or national bank or a federally insured savings and loan association in the State that has a total paid-in capital of at least $1,000,000. The authority may designate the trust department of a State or national bank or of a savings and loan association as a depository to receive securities that the authority owns or acquires. Unless an agreement limits classes of investments, the authority may invest its money in bonds or other obligations of, or guaranteed as to principal and interest by, the United States, a unit of the United States, the State, or a political subdivision of the State.

The authority may: adopt bylaws for the conduct of its business; adopt a seal; maintain offices in the State; accept loans, grants, or assistance of any kind from the federal or State government, a local government, or a private source; enter into contracts and other legal instruments; sue and be sued in its own name; acquire, purchase, hold, lease as lessee, and use any franchise, patent, or license and real, personal, mixed, tangible, or intangible property, or any interest in property, necessary or convenient to carry out its purposes; sell, lease as lessor, transfer, and dispose of its property or interest in property; fix and collect rates, rentals, fees, and charges for services and facilities the authority provides or makes available; with the owner’s permission, enter land, waters, or premises to make a survey, sounding, boring, or examination to accomplish a purpose authorized by this subtitle; exercise a power usually possessed by a private corporation in performing similar functions, unless to do so would conflict with State law or unless the action or decision of the authority would impose liability on the State or any county; and do all things necessary or convenient to carry out the powers expressly granted by this subtitle.

The authority may: acquire, improve, develop, manage, market, lease as lessor or lessee, operate, and maintain a project; and acquire, either directly or by or through an agreement with the United States Department of Defense or a military service, by purchase or otherwise, any property, rights, rights-of-way, franchises, easements, and other interests in land, including land lying under water and riparian rights located in or outside the State as necessary or convenient to improve or operate a project on terms and at prices that the authority considers to be reasonable.

The authority may: borrow money to finance costs of a project or for any other corporate purpose of the authority; mortgage or otherwise encumber its property or revenues for the loan; and combine projects for financing.

To carry out this subtitle, the Maryland Economic Development Corporation may issue bonds from time to time on behalf of the authority to finance costs of a project.

An obligation of the authority is not a debt, liability, or pledge of the full faith and credit of the State or any county.

The authority may: lend or otherwise make available its net revenue to finance costs of a project; and enter into a financing agreement, mortgage, or other instrument that it determines is necessary or desirable to evidence or secure the loan. A lease of property of the authority may require or authorize the lessee or another person, on conveyance of the property to the authority, to purchase or otherwise acquire the property for consideration that the authority establishes.

The authority may: fix and collect rates or charges for its services; establish the terms and conditions for the services; and contract with a person for the provision of the services of the authority. The rates or charges of the authority are not subject to supervision or regulation by any other unit of the State or by a political subdivision of the State. Subject to any agreement, the authority may apply its revenues to any lawful purpose. Except as necessary to pay an obligation or to implement programs of the authority, the net revenue of the authority may not benefit a person other than the county or counties in which the facility is located.

Except as provided in subsection (b) of this section, the authority is exempt from any requirement to pay any taxes or assessments on its properties, activities, or any revenue from its properties or activities. Property that the authority sells or leases to a private entity is subject to State and local property taxes from the time of the sale or lease.

As soon as practical after the close of the fiscal year, an independent certified public accountant shall audit the financial books, records, and accounts of the authority. The finance committee of the authority shall select an accountant to conduct the audit who: is licensed to practice accountancy in the State; is experienced and qualified in the accounting and auditing of public bodies; and does not have a direct or indirect interest in the fiscal affairs of the authority. Except as provided in subparagraph (ii) of this paragraph, the accountant shall report the results of the audit, including the accountant’s unqualified opinion on the presentation of the financial position and the results of the financial operations of the authority. If the accountant cannot express an unqualified opinion, the accountant shall explain in detail the reasons for the qualifications, disclaimers, or opinions, including recommendations of changes that could make future unqualified opinions possible. The State may audit the books, records, and accounts of the authority.

On or before October 1 of each year, the authority shall submit a report to: the Governor; the governing body of each county in which the facility is located; the Department; and in accordance with § 2-1257 of the State Government Article, the General Assembly. The report shall include a complete operating and financial statement and a summary of the activities of the authority during the preceding fiscal year.

This subtitle may be cited as the Maryland Local Military Installation Redevelopment Authority Act.