# Economic Development (GEC)

## Title 12. Local Development Authorities and Resources

### Subtitle 1. Economic Development Revenue Bond Act

#### Section 12-101

(a) In this subtitle the following words have the meanings indicated.

(b) "Authority" means an industrial development authority established in accordance with Sec. 12-105 of this subtitle.

(c)

  (1) "Bond" means a revenue bond, note, or other instrument, certificate, or evidence of obligation that is issued and sold by a public body under this subtitle to finance a facility or to refund an outstanding bond.

  (2) "Bond" includes:

    (i) a bond anticipation note; and

    (ii) a note in the nature of commercial paper.

(d) "Chief executive" means the president, chair, mayor, county executive, or any other chief executive officer of a public body.

(e) "Facility" means any land or an interest in land, structure, working capital, equipment, or other property, or any combination of them, the acquisition or improvement of which the legislative body of a county or municipal corporation, the board of directors of an authority, or the Maryland Industrial Development Financing Authority, in its sole discretion, determines by resolution will accomplish one or more of the legislative purposes listed in Sec. 12-103(b) of this subtitle.

(f) "Facility applicant" means a person, public or private corporation, or other entity, whether for-profit or nonprofit, that, by letter of intent or similar agreement with a public body, requests the public body to participate in financing a facility under this subtitle for use by a facility user.

(g)

  (1) "Facility user" means a person, public or private corporation, or other entity, whether for-profit or nonprofit, that owns, leases, or uses all or part of a facility.

  (2) "Facility user" may include a facility applicant.

(h) "Finance" includes refinance.

(i)

  (1) "Finance board" means a unit or instrumentality of a county or municipal corporation that is authorized by statute or charter to issue and sell bonds of the county or municipal corporation.

  (2) "Finance board" does not include the legislative body of a county or municipal corporation.

(j) "Improve" means to add, alter, construct, equip, expand, extend, improve, install, reconstruct, rehabilitate, remodel, or repair.

(k) "Improvement" means addition, alteration, construction, equipping, expansion, extension, improvement, installation, reconstruction, rehabilitation, remodeling, or repair.

(l) "Public body" means:

  (1) a county;

  (2) a municipal corporation;

  (3) an authority; or

  (4) the Maryland Industrial Development Financing Authority.

(m)

  (1) "Public port" means the public ports and harbors on the Chesapeake Bay or the Isle of Wight Bay and their tributaries in the State.

  (2) "Public port" includes:

    (i) the Baltimore Harbor (the Patapsco River and its tributaries north and west of North Point and Bodkin Point);

    (ii) the Port of Cambridge (the south side of the Choptank River between Hambrook's Bar and the Emerson C. Harrington Bridge); and

    (iii) the Port of Crisfield (the Little Annemessex River east of James Island).

#### Section 12-102

(a) This subtitle shall be liberally construed to accomplish its purposes.

(b) A facility is not a capital project of a public body within the meaning of any statutory or charter provision.

(c) This subtitle does not authorize a county or municipal corporation to acquire a facility by eminent domain.

#### Section 12-103

(a) The General Assembly finds that:

  (1) conditions of unemployment exist in many areas of the State;

  (2) the acquisition and improvement of facilities are essential to relieve this unemployment and to establish a balanced economy in the State;

  (3) the present and prospective health, happiness, safety, right of gainful employment, and general welfare of the residents of the State will be promoted by the acquisition and improvement of facilities;

  (4) the control or abatement of pollution of the environment of the State, including noise pollution, is necessary to:

    (i) retain existing industry and commerce in and attract new industry and commerce to the State;

    (ii) protect the health, welfare, and safety of the residents of the State;

    (iii) protect the natural resources of the State; and

    (iv) encourage the economic development of the State; and

  (5)

    (i) the public ports of the State are assets of value to the entire State;

    (ii) the residents of the entire State benefit directly from the waterborne commerce that the public ports attract and service; and

    (iii) any improvement of public ports that increases their export and import commerce will benefit the residents of the entire State.

(b) The legislative purposes of this subtitle are to:

  (1) relieve conditions of unemployment in the State;

  (2) encourage the increase of industry and commerce and a balanced economy in the State;

  (3) assist in the retention of existing industry and commerce in, and the attraction of new industry and commerce to, the State through, among other things, the development of ports, the control or abatement of environmental pollution, and the use and disposal of waste;

  (4) promote economic development;

  (5) protect natural resources and encourage resource recovery; and

  (6) promote the health, welfare, and safety of the residents of the State.

#### Section 12-104

It is the policy of the State to allow the exercise of the powers granted by this subtitle even though the activities authorized may displace or limit free economic competition.

#### Section 12-105

(a) To accomplish one or more of the legislative purposes listed in Sec. 12-103(b) of this subtitle, the legislative body of a county or municipal corporation may adopt a resolution to create an industrial development authority in accordance with this subtitle.

(b) A resolution adopted under subsection (a), (f), or (g) of this section:

  (1) is administrative in nature;

  (2) is not subject to referendum; and

  (3) in a county or municipal corporation that has a publicly elected chief executive, is subject to approval by the chief executive.

(c) Subsection (a) of this section is self-executing and fully authorizes a county or municipal corporation to establish an authority, notwithstanding any other statutory or charter provision.

(d) A resolution adopted under subsection (a) of this section shall include proposed articles of incorporation of the authority that state:

  (1) the name of the authority, which shall be "Industrial Development Authority of (name of the incorporating county or municipal corporation)";

  (2) that the authority is formed under this subtitle;

  (3) the names, addresses, and terms of office of the initial members of the board of directors of the authority;

  (4) the address of the principal office of the authority;

  (5) the purposes for which the authority is formed; and

  (6) the powers of the authority subject to the limitations on the powers of an authority under this subtitle.

(e)

  (1) The chief executive of the incorporating county or municipal corporation, or any other official designated in the resolution establishing the authority, shall execute and file the articles of incorporation of the authority for record with the State Department of Assessments and Taxation.

  (2) When the State Department of Assessments and Taxation accepts the articles of incorporation for record, the authority becomes a body politic and corporate and an instrumentality of the incorporating county or municipal corporation.

  (3) Acceptance of the articles of incorporation for record by the State Department of Assessments and Taxation is conclusive evidence of the formation of the authority.

(f)

  (1) By resolution, the legislative body of the incorporating county or municipal corporation may adopt an amendment to the articles of incorporation of the authority.

  (2) Articles of amendment may contain any provision that lawfully could be contained in articles of incorporation at the time of the amendment.

  (3) The articles of amendment shall be filed for record with the State Department of Assessments and Taxation.

  (4) The articles of amendment are effective as of the time the State Department of Assessments and Taxation accepts the articles for record.

  (5) Acceptance of the articles of amendment for record by the State Department of Assessments and Taxation is conclusive evidence that the articles have been lawfully and properly adopted.

(g)

  (1) Subject to the provisions of this section and any limitations imposed by law on the impairment of contracts, the incorporating county or municipal corporation, in its sole discretion, by resolution may:

    (i) set or change the structure, organization, procedures, programs, or activities of the authority; or

    (ii) terminate the authority.

  (2) On termination of an authority:

    (i) title to all property of the authority shall be transferred to and vest in the incorporating county or municipal corporation; and

    (ii) all obligations of the authority shall be transferred to and assumed by the incorporating county or municipal corporation.

#### Section 12-106

(a)

  (1) Subject to paragraph (4) of this subsection, the board of directors of an authority consists of five members appointed by the legislative body of the incorporating county or municipal corporation.

  (2) Appointment procedures shall be provided in the resolution establishing the authority.

  (3)

    (i) In a county or municipal corporation that has a publicly elected chief executive, the chief executive shall submit nominations for the initial board members.

    (ii) The chief executive may nominate more than one individual for an initial board member position.

  (4) An officer or employee of the incorporating county or municipal corporation may not be appointed to the board but, if provided by resolution, may serve as an ex officio, nonvoting member of the board.

(b)

  (1)

    (i) The initial five members of the board of directors of an authority shall be appointed for staggered terms, ranging from 1 to 5 years, respectively, beginning on the date the State Department of Assessments and Taxation accepts the articles of incorporation of the authority for record.

    (ii) Except as provided for initial board members, the term of an appointed member is 5 years.

  (2) At the end of a term, an appointed member continues to serve until a successor is appointed.

  (3) A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed.

  (4)

    (i) In a county or municipal corporation that has a publicly elected chief executive, the chief executive shall submit nominations for vacancies on the board.

    (ii) The chief executive may nominate more than one individual for a vacancy.

(c)

  (1) A member may be removed at any time with or without cause.

  (2) Procedures for removal shall be those provided in the resolution establishing the authority or a subsequent resolution.

(d)

  (1) From among its members, the board shall elect a chair and other officers.

  (2) An ex officio member may hold any office other than chair.

(e)

  (1) Three voting members of the board are a quorum.

  (2) The board may act on a resolution only by the affirmative vote of at least three voting members.

(f) A member of the board:

  (1) may not receive compensation as a member of the board; but

  (2) shall be reimbursed for expenses incurred in performing the member's duties.

(g) The board shall exercise its powers by resolution.

#### Section 12-107

(a) The board of directors of an authority shall govern the authority.

(b) Except as otherwise provided in this subtitle or the resolution establishing the authority, the procedures of the incorporating county or municipal corporation control any matter relating to the internal administration of the authority.

#### Section 12-108

Except as necessary to pay debt service or implement the public purposes or programs of the incorporating county or municipal corporation, the net earnings of an authority may benefit only the incorporating county or municipal corporation and may not benefit any person.

#### Section 12-109

(a)

  (1) Except as limited by its articles of incorporation, an authority has all the powers set forth in this subtitle.

  (2) An authority may:

    (i) receive money from its incorporating county or municipal corporation, the State, other governmental units, or nonprofit organizations;

    (ii) charge fees for its services;

    (iii) have employees and consultants as it considers necessary; and

    (iv) use the services of other governmental units.

(b) For the purposes of this subtitle, each county and municipal corporation has all the powers granted in this subtitle to an authority, including the power to make loans to private enterprises competing with enterprises not receiving the loans.

(c)

  (1)

    (i) An authority shall operate and exercise its powers solely to accomplish one or more of the legislative purposes of this subtitle.

    (ii) The incorporating county or municipal corporation may use the authority's exercise of its powers to accomplish one or more of the legislative purposes.

  (2) An authority or an incorporating county or municipal corporation may exercise its powers regardless of any effect on economic competition.

  (3) The powers granted to a county or municipal corporation under paragraph (2) of this subsection do not:

    (i) grant to the county or municipal corporation powers in any substantive area not otherwise granted to the county or municipal corporation under other public general or public local law;

    (ii) restrict the county or municipal corporation from exercising any power granted to the county or municipal corporation under other public general or public local law or otherwise;

    (iii) authorize the county or municipal corporation, or the officers of the county or municipal corporation, to engage in an activity that is beyond the power granted under other public general or public local law or otherwise; or

    (iv) preempt or supersede the regulatory authority of a unit of State government under a public general law.

  (4) The incorporating county or municipal corporation is not precluded from directly exercising the powers granted to an authority under this subtitle after the establishment of the authority.

#### Section 12-110

(a) Notwithstanding any limitation of law, a public body may issue and sell bonds periodically to accomplish the legislative purposes of this subtitle.

(b)

  (1) A public body may issue and sell bonds to:

    (i) subject to paragraph (2) of this subsection, finance the costs of the acquisition or improvement of a facility for a facility user, including working capital;

    (ii) refund outstanding bonds;

    (iii) pay the costs of preparing, printing, selling, and issuing the bonds;

    (iv) fund reserves; and

    (v) pay the interest on the bonds in the amount and for the period the public body considers reasonable.

  (2)

    (i) A public body may not issue bonds to acquire working capital unless the bonds are secured by a letter of credit or an interest in property.

    (ii) Working capital acquired by issuing bonds may not exceed 25% of the principal amount of the bonds.

(c)

  (1) Bonds are limited obligations and are not a pledge of the faith and credit or taxing power of the public body.

  (2) Bonds issued by an authority are issued on behalf of the public body that established the authority.

  (3) Bonds issued by the Maryland Industrial Development Financing Authority:

    (i) are issued on behalf of the State; and

    (ii) shall be issued in accordance with the Maryland Industrial Development Financing Authority Act, Title 5, Subtitle 7 of this article.

(d)

  (1) A bond:

    (i) may be in bearer form;

    (ii) may be registrable as to principal alone or as to both principal and interest; and

    (iii) is a "security" as defined by Sec. 8-102 of the Commercial Law Article, whether or not the bond is one of a class or series or is divisible into a class or series of instruments.

  (2)

    (i) A bond shall be signed by the chief executive or by an officer designated by resolution of the public body.

    (ii) A bond may be executed by facsimile signature in accordance with Sec. 2-303 of the State Finance and Procurement Article.

    (iii) The seal of the public body shall be affixed to the bond and attested by the clerk or similar administrative officer of the public body designated by resolution.

    (iv) An officer's signature or countersignature on a bond or coupon remains valid even if the officer leaves office before the bond is delivered.

  (3)

    (i) Except as provided in subparagraph (ii) of this paragraph, a bond shall mature not later than 30 years after its date of issue.

    (ii) If a bond is secured by a mortgage insured by a unit of the federal government, the bond shall have a term of maturity that does not exceed the term of the insurance.

(e)

  (1) A public body may acquire or improve a facility with bond proceeds:

    (i) by leasing the facility to a facility user;

    (ii) by selling the facility to a facility user under an installment sale agreement;

    (iii) by lending bond proceeds to a facility user to be used to finance a facility; or

    (iv) in any other manner that the public body considers appropriate to accomplish the legislative purposes of this subtitle.

  (2)

    (i) The lease of a facility under this subtitle may authorize or require the facility user to acquire the facility on payment of the principal of and interest on the bonds applicable to the facility user.

    (ii) The consideration for the acquisition of the facility may be nominal.

#### Section 12-111

(a) For each issue of its bonds, the legislative body of a county or municipal corporation, the board of directors of an authority, or the Maryland Industrial Development Financing Authority, shall adopt a resolution that:

  (1) specifies and describes the facility;

  (2) generally describes the public purpose to be served and the financing transaction;

  (3) specifies the maximum principal amount of the bonds that may be issued; and

  (4) imposes terms or conditions on the issuance and sale of bonds it considers appropriate.

(b)

  (1) The legislative body of a county or municipal corporation, the board of directors of an authority, or the Maryland Industrial Development Financing Authority, by resolution, may:

    (i) specify, determine, prescribe, and approve matters, documents, and procedures that relate to the authorization, sale, security, issuance, delivery, and payment of and for the bonds;

    (ii) create security for the bonds;

    (iii) provide for the administration of bond issues through trust or other agreements with a bank or trust company that cover a countersignature on a bond, the delivery of a bond, or the security for a bond; and

    (iv) take other action it considers appropriate concerning the bonds.

  (2) The legislative body of a county or municipal corporation, the board of directors of an authority, or the Maryland Industrial Development Financing Authority may authorize a designee to exercise the powers provided under paragraph (1) of this subsection.

  (3) A designee may be:

    (i) a finance board, which shall act by resolution;

    (ii) the chief executive, who shall act by executive order or otherwise; or

    (iii) any other appropriate administrative officer, who shall act by order or otherwise with the approval of the chief executive.

  (4) Subject to the limitations of this subtitle and the limitations the legislative body prescribes by resolution, a chief executive or an administrative officer acting under a resolution of a legislative body shall exercise the authority granted:

    (i) to accomplish the legislative purposes of this subtitle; and

    (ii) to accomplish the public purposes of the resolution that the legislative body adopts.

(c)

  (1) A resolution or trust agreement may contain a pledge or assignment of revenues received from the financing of a facility.

  (2) The lien of the pledge or assignment made is valid and binding against a person with a claim against the public body, whether or not the person has notice of the lien.

(d) Notwithstanding any other public general or public local law, a public body need not file or record a resolution, trust agreement, lease, installment sale agreement, loan agreement, or other instrument that it adopts or makes under this subtitle, except in the records of the public body.

(e) A resolution adopted under this section:

  (1) is administrative in nature;

  (2) is not subject to procedures required for legislative acts;

  (3) is not subject to referendum; and

  (4) in a county or municipal corporation that has a publicly elected chief executive, is subject to approval by the chief executive.

(f) This authorization is self-executing, and fully authorizes a public body to issue and sell bonds, notwithstanding any other statutory or charter provision.

#### Section 12-112

(a)

  (1) Bonds shall be sold in the manner, at competitive or negotiated sale, and on the terms at, above, or below par, that the public body considers best.

  (2) A contract to acquire or improve a facility may provide that payment shall be made in bonds.

(b) A bond is not subject to the limitations of Sec.Sec. 19-205 and 19-206 of the Local Government Article.

#### Section 12-113

(a)

  (1) A bond and the interest on a bond are limited obligations of the public body.

  (2) Except for bond anticipation notes and notes in the nature of commercial paper, the principal of, premium, and interest on a bond are payable solely from:

    (i) money from the financing of a facility; or

    (ii) other money made available to the public body.

  (3) Bonds and the interest on them:

    (i) are not debts or charges against the general credit or taxing powers of a public body within the meaning of any constitutional or charter provision or statutory limitation; and

    (ii) may not give rise to any pecuniary liability of an issuing public body.

  (4) A bond may state on its face that the bond:

    (i) is issued under this subtitle; and

    (ii) is not a debt to which the public body's faith and credit is pledged.

(b) On default in the payment of the principal of or interest on a bond, a court with jurisdiction:

  (1) may appoint a receiver or take other appropriate action to provide for the payment of the bond; and

  (2) shall apply any available revenue as this subtitle or a resolution adopted under this subtitle provides.

#### Section 12-114

A finding by the legislative body of a county or municipal corporation, the board of directors of an authority, or the Maryland Industrial Development Financing Authority as to the public purpose of an action taken under this subtitle, and the appropriateness of that action to serve the public purpose, is conclusive in a proceeding involving the validity or enforceability of a bond, or security for a bond, issued under this subtitle.

#### Section 12-115

Instead of the procedures under this subtitle, a municipal corporation, by charter amendment adopted under Title 4, Subtitle 3 of the Local Government Article, or a charter county, by charter amendment adopted under Article XI-A of the Maryland Constitution, may provide for the issuance of revenue bonds under the terms and conditions that the municipal corporation or charter county considers appropriate to achieve the legislative purposes of this subtitle.

#### Section 12-116

The principal of and interest on bonds, the transfer of bonds, and any income derived from the bonds, including profits made in their sale or transfer, are forever exempt from State and local taxes.

#### Section 12-117

(a) This section applies to a lease or contract under which:

  (1) the State or a unit of the State will be an initial user or occupant of a facility financed by bonds issued under this subtitle; or

  (2) a facility financed by bonds issued under this subtitle will be built on property owned by the State.

(b) The State or a unit of the State may not enter into a lease or contract that is subject to this section and that forms a part of the security for bonds issued under this subtitle unless:

  (1) the Legislative Policy Committee has authorized the facility as being consistent with the capital budget; and

  (2) the Board of Public Works specifically has approved the bond issue for that facility.

#### Section 12-118

This subtitle may be cited as the Maryland Economic Development Revenue Bond Act.

### Subtitle 2. Tax Increment Financing Act

#### Section 12-201

(a) In this subtitle the following words have the meanings indicated.

(b) "Adjusted assessable base" means the fair market value of real property that qualifies for a farm or agricultural use under Sec. 8-209 of the Tax - Property Article, without regard to the agricultural use assessment for the property as of January 1 of the year preceding the effective date of the resolution creating the development district under Sec. 12-203 of this subtitle.

(c) "Assessable base" means the total assessable base, as determined by the Supervisor of Assessments or the governing body in accordance with Sec. 12-203(b) of this subtitle, of all real property subject to taxation in a development district or a sustainable community.

(d)

  (1) "Assessment ratio" means a real property tax assessment ratio, however designated or calculated, that is used under applicable general law to determine the assessable base.

  (2) "Assessment ratio" includes the assessment percentage specified under Sec. 8-103(c) of the Tax - Property Article.

(e) "Blighted area" means an area in which a majority of buildings have declined in productivity by reason of obsolescence, depreciation, or other causes to an extent that they no longer justify fundamental repairs and adequate maintenance.

(f) "Bond" means a revenue bond, note, or other similar instrument issued in accordance with this subtitle by:

  (1) a political subdivision; or

  (2) the revenue authority of Prince George's County.

(g) "Chief executive" means the president, chair, mayor, or other chief executive officer of a political subdivision or the revenue authority of Prince George's County.

(h) "Development" includes new development, redevelopment, revitalization, and renovation.

(i)

  (1) "Development district" means a contiguous or noncontiguous area designated by a resolution.

  (2) "Development district" includes an extraordinary development district.

(j) "Extraordinary development district" means a development district that:

  (1) is designated as such by resolution; and

  (2)

    (i) contains at least 50 acres, on all or part of which a federal law enforcement agency will be located; or

    (ii) is the site of an immersive entertainment venue.

(k) "Immersive entertainment venue" means an entertainment venue that:

  (1) is owned by a private entity;

  (2) has at least 3,000 seats;

  (3) has an aggregate development cost of at least $500,000,000; and

  (4) has an immersive experience with advanced display technology, including 4D visual effects and spherical LED screens.

(l) "Issuer" means a political subdivision or the revenue authority of Prince George's County that issues a bond under this subtitle.

(m) "MEDCO obligation" means a bond, note, or other similar instrument that the Maryland Economic Development Corporation issues under authority other than this subtitle to finance the cost of infrastructure improvements located in or supporting a transit-oriented development, a sustainable community, a RISE zone, or a State hospital redevelopment.

(n) "Original base" means the assessable base:

  (1) as of January 1 of the year preceding the effective date of the resolution creating the development district under Sec. 12-203 of this subtitle; or

  (2) if the political subdivision determined the original base in accordance with Sec. 12-203(b) of this subtitle, the base value as established in the resolution.

(o) "Original full cash value" means the dollar amount that is determined by dividing the original base by the assessment ratio used to determine the original base.

(p) "Original taxable value" means for any tax year the dollar amount that is:

  (1) the adjusted assessable base, if an adjusted assessable base applies; or

  (2) in all other cases, the lesser of:

    (i) the product of multiplying the original full cash value by the assessment ratio applicable to that tax year; and

    (ii) the original base.

(q) "Political subdivision" means a county or a municipal corporation.

(r) "RISE zone" means an area designated as a Regional Institution Strategic Enterprise zone under Sec. 10-140 of this article.

(s) "State hospital redevelopment" means any combination of private or public commercial, residential, or recreational uses, improvements, and facilities that:

  (1) is part of a comprehensive coordinated development plan or strategy involving:

    (i) property that was occupied formerly by a State facility, as defined in Sec. 10-101 of the Health - General Article, or a State residential center, as defined in Sec. 7-101 of the Health - General Article; or

    (ii) property that is adjacent or reasonably proximate to property that was occupied formerly by a State facility, as defined in Sec. 10-101 of the Health - General Article, or a State residential center, as defined in Sec. 7-101 of the Health - General Article;

  (2) in accordance with design development principles, maximizes use of the property by those constituencies it is intended to serve; and

  (3) is designated as a State hospital redevelopment by:

    (i) the Smart Growth Subcabinet established under Sec. 9-1406 of the State Government Article; and

    (ii) the local government or multicounty agency with land use and planning responsibility for the relevant area.

(t)

  (1) "Sustainable community" has the meaning stated in Sec. 6-201 of the Housing and Community Development Article.

  (2) "Sustainable community" includes a portion of a sustainable community.

(u) "Tax increment" means for any tax year the amount by which the assessable base as of January 1 of the preceding tax year exceeds the original base taxable value divided by the assessment ratio used to determine the original taxable value.

(v) "Tax year" means the period from July 1 of a calendar year through June 30 of the next calendar year.

(w) "Transit-oriented development" has the meaning stated in Sec. 7-101 of the Transportation Article.

#### Section 12-202

(a)

  (1) This subtitle is self-executing.

  (2) A political subdivision need not amend its charter to exercise the powers granted by this subtitle.

(b)

  (1) Except as provided in paragraph (2) of this subsection, this subtitle does not apply in Baltimore City.

  (2) The provisions of Sec. 12-203(a)(1)(ii) of this subtitle pertaining to noncontiguous blighted areas apply in Baltimore City.

#### Section 12-203

(a) Before issuing bonds, the governing body of the political subdivision shall:

  (1) by resolution:

    (i) designate a contiguous area within its jurisdiction as a development district;

    (ii) designate a noncontiguous blighted area within its jurisdiction as a development district;

    (iii) identify an area that has been designated a sustainable community; or

    (iv) identify an area that has been designated a RISE zone;

  (2) receive from the Supervisor of Assessments a certification of the amount of the original base, or if applicable, the adjusted assessable base; and

  (3) pledge that until the bonds are fully paid, or a longer period, the real property taxes in the development district, a RISE zone, or a sustainable community shall be divided as follows:

    (i) the portion of the taxes that would be produced at the current tax rate on the original taxable value base shall be paid to the respective taxing authorities in the same manner as taxes on other property are paid; and

    (ii) the portion of the taxes on the tax increment that normally would be paid into the general fund of the political subdivision shall be paid into the special fund established under Sec. 12-208 of this subtitle and applied in accordance with Sec. 12-209 of this subtitle.

(b)

  (1) In this subsection, "brownfields site" has the meaning stated in Sec. 5-301 of this article.

  (2) Before issuing bonds and as part of the resolution required under subsection (a) of this section, the governing body of the political subdivision may determine the original base of a brownfields site in a sustainable community.

  (3) The determination of the original base of a brownfields site under this section:

    (i) is not a determination of the value of the brownfields site; and

    (ii) may not be used to determine a property tax assessment or appeal of a property tax assessment under the Tax - Property Article.

(c) The establishment or identification by a county of a development district, a RISE zone, or a sustainable community that is wholly or partly in a municipal corporation shall also require a resolution approving the development district, RISE zone, or sustainable community by the governing body of the municipal corporation.

#### Section 12-204

(a) Notwithstanding any limitation of law, an issuer may issue bonds from time to time to finance the development of an industrial, commercial, or residential area.

(b) To issue bonds under this subtitle, the governing body of a political subdivision shall adopt an ordinance that:

  (1) describes the proposed undertaking; and

  (2) states:

    (i) that the governing body has complied with Sec.Sec. 12-203 and 12-208(c) and (d) of this subtitle;

    (ii) the maximum principal amount of the bonds; and

    (iii) the maximum rate of interest on the bonds.

(c) The ordinance may specify the following for bonds issued to carry out the financing of the proposed undertaking:

  (1) the principal amount;

  (2) the rate of interest;

  (3) the manner and terms of sale;

  (4) the time of execution, issuance, and delivery;

  (5) the form and denomination;

  (6) the manner in which, and the times and places at which principal and interest shall be paid;

  (7) conditions for redemption before maturity; or

  (8) other provisions consistent with this subtitle that the governing body of the political subdivision determines are necessary or desirable.

(d) The revenue authority of Prince George's County may issue bonds in accordance with an ordinance adopted by the governing body of Prince George's County.

(e) The ordinance may specify the items listed in subsection (c) of this section or may authorize:

  (1) the finance board to specify those items by resolution or ordinance; or

  (2) the chief executive to specify those items by executive order.

(f)

  (1) Except as provided in paragraph (2) of this subsection, neither an ordinance authorizing the bonds nor an ordinance, resolution, or executive order issued, passed, or adopted under this section may be subject to referendum because of any other State or local law.

  (2) An ordinance that authorizes the pledge of the full faith and credit of a political subdivision to the payment of principal and interest on a bond is subject to any applicable right to referendum.

#### Section 12-205

(a) A bond:

  (1) may be in bearer form;

  (2) may be registrable as to principal alone or as to both principal and interest; and

  (3) is a "security" under Sec. 8-102 of the Commercial Law Article, whether or not the bond is one of a class or series or is divisible into a class or series of instruments.

(b)

  (1) A bond shall be signed manually or in facsimile by the chief executive of the issuer.

  (2) An officer's signature or facsimile signature on a bond remains valid even if the officer leaves office before the bond is delivered.

  (3) The clerk or other similar administrative officer of the issuer shall attest to and affix to each bond the seal of the issuer.

(c) A bond shall mature not later than 40 years after the date of issue.

(d)

  (1) The issuer may sell bonds at competitive or negotiated sale in any manner and on any terms that it considers best.

  (2) A contract to acquire property may provide that payment shall be made in bonds.

  (3) Bonds are exempt from Sec.Sec. 19-205 and 19-206 of the Local Government Article.

#### Section 12-206

(a) Bonds shall be payable from the special fund established under Sec. 12-208 of this subtitle.

(b) The governing body of the political subdivision or the issuer may:

  (1) pledge its full faith and credit or other assets and revenues to pay the bonds; and

  (2) establish a sinking fund or a debt service reserve fund for the bonds.

(c) The assets and revenues pledged under subsection (b)(1) of this section may include any amount that the political subdivision may receive from the State under Sec. 2-222 of the Tax - Property Article.

#### Section 12-207

(a) Except as provided in subsections (b) and (e) of this section, bond proceeds may be used only:

  (1) to buy, lease, condemn, or otherwise acquire property, or an interest in property:

    (i) in the development district, a RISE zone, or a sustainable community; or

    (ii) needed for a right-of-way or other easement to or from the development district, a RISE zone, or a sustainable community;

  (2) for site removal;

  (3) for surveys and studies;

  (4) to relocate businesses or residents;

  (5) to install utilities, construct parks and playgrounds, and for other needed improvements including:

    (i) roads to, from, or in the development district;

    (ii) parking; and

    (iii) lighting;

  (6) to construct or rehabilitate buildings for a governmental purpose or use;

  (7) for reserves or capitalized interest;

  (8) for necessary costs to issue bonds; and

  (9) to pay the principal of and interest on loans, advances, or indebtedness that a political subdivision incurs for a purpose specified in this section.

(b)

  (1) This subsection applies to a sustainable community identified under Sec. 12-203 of this subtitle.

  (2) In addition to the purposes under subsection (a) of this section and without limiting the purposes in subsection (a) of this section, bond proceeds may be used in a sustainable community for:

    (i) historic preservation or rehabilitation;

    (ii) environmental remediation, demolition, and site preparation;

    (iii) parking lots, facilities, or structures of any type whether for public or private use;

    (iv) highways as defined in Sec. 8-101 of the Transportation Article or transit service as defined in Sec. 7-101 of the Transportation Article that support sustainable communities;

    (v) schools;

    (vi) affordable or mixed income housing; and

    (vii) stormwater management and storm drain facilities.

(c)

  (1) In addition to the purposes listed in subsection (a) of this section, the proceeds from bonds that Prince George's County or the revenue authority of Prince George's County issues may be used:

    (i) for convention, conference, or visitors' centers;

    (ii) for the acquisition, construction, or rehabilitation of an immersive entertainment venue located within an extraordinary development district;

    (iii) to maintain infrastructure improvements and convention, conference, or visitors' centers;

    (iv) to market development district facilities and other improvements; and

    (v) for the purpose of encouraging redevelopment in those areas listed in paragraph (2) of this subsection, to install infrastructure improvements, including:

      (1) streets;

      (2) parking structures of any type whether for public or private use;

      (3) utilities;

      (4) street lights;

      (5) stormwater management and storm drain facilities;

      (6) fencing;

      (7) noise walls;

      (8) retaining walls;

      (9) trails;

      (10) sidewalks;

      (11) pedestrian and vehicular bridges; and

      (12) park facilities.

  (2) The purpose of the authority granted by paragraph (1)(v) of this subsection is to encourage redevelopment in:

    (i) revitalization areas designated by the county;

    (ii) mixed use centers;

    (iii) blighted areas; and

    (iv) the Developed Tier, growth corridors, and growth centers, as defined in the county General Plan.

(d)

  (1) In addition to the purposes listed in subsection (a) of this section, the proceeds from bonds that a municipal corporation issues may be used for the purpose of encouraging redevelopment in those areas listed in paragraph (2) of this subsection, to install infrastructure improvements, including:

    (i) streets;

    (ii) parking structures of any type whether for public or private use;

    (iii) utilities;

    (iv) street lights;

    (v) stormwater management and storm drain facilities;

    (vi) fencing;

    (vii) noise walls;

    (viii) retaining walls;

    (ix) trails;

    (x) sidewalks;

    (xi) pedestrian and vehicular bridges; and

    (xii) park facilities.

  (2) The purpose of the authority granted by paragraph (1) of this subsection is to encourage redevelopment in:

    (i) revitalization areas designated by a county or municipal corporation;

    (ii) mixed use centers;

    (iii) blighted areas; and

    (iv) developed areas and growth areas, as defined in a county or municipal corporation land use plan.

(e)

  (1) This subsection applies to a RISE zone identified under Sec. 12-203 of this subtitle.

  (2) In addition to the purposes under subsection (a) of this section and without limiting the purposes in subsection (a) of this section, bond proceeds may be used in a RISE zone for:

    (i) historic preservation or rehabilitation;

    (ii) environmental remediation, demolition, and site preparation;

    (iii) parking lots, facilities, or structures of any type whether for public or private use;

    (iv) schools;

    (v) affordable or mixed income housing;

    (vi) stormwater management and storm drain facilities;

    (vii) innovation centers and laboratory facilities, or structures of any type whether for public or private use, including maintenance and installation of improvements in the structures and services that support the purposes of the RISE zone program; and

    (viii) any other facilities or structures of any type whether for public or private use that support the purposes of the RISE zone program.

(f) In addition to the purposes listed in subsection (a) of this section, the proceeds from bonds issued by the County Commissioners of Washington County may be used for:

  (1) demolition or site removal, including on property that is privately owned and intended to remain privately owned;

  (2) pedestrian or vehicular bridges or overpasses, including railroad crossings and related improvements; or

  (3) parking lots, facilities, or structures of any type, whether:

    (i) publicly or privately owned; or

    (ii) available for public or private use.

(g) In addition to the purposes listed in subsection (a) of this section, the proceeds from bonds issued by Charles County may be used:

  (1) for convention centers, conference centers, or visitors' centers;

  (2) to maintain infrastructure improvements, convention centers, conference centers, or visitors' centers; and

  (3) to market development district facilities and other improvements.

#### Section 12-208

(a) The governing body of a political subdivision may adopt a resolution creating a special fund for a development district, a RISE zone, or a sustainable community even though no bonds:

  (1) have been issued for the development district, the RISE zone, or the sustainable community; or

  (2) are outstanding at the time of adoption.

(b) The taxes allocated to the special fund in accordance with Sec. 12-203(a)(3)(ii) of this subtitle shall be deposited in the special fund while the resolution that created the special fund remains in effect.

(c) Other than tax revenues received from residential properties in Prince George's County, the tax collected under Sec. 12-203(a)(3)(ii) of this subtitle is not considered a tax of the political subdivision for the purposes of any constant yield limitation or State or local restriction.

(d) State real property taxes may not be paid into the special fund.

#### Section 12-209

(a) Subject to subsection (c) of this section, the special fund for the development district, the RISE zone, or the sustainable community may be used for any of the following purposes as determined by the governing body of the political subdivision:

  (1) a purpose specified in Sec. 12-207 of this subtitle;

  (2) accumulated to pay debt service on bonds to be issued later;

  (3) payment or reimbursement of debt service, or payments under an agreement described in subsection (b) of this section, that the political subdivision is obliged under a general or limited obligation to pay, or has paid, on or relating to bonds issued by the State, a political subdivision, or the revenue authority of Prince George's County if the proceeds were used for a purpose specified in Sec. 12-207 of this subtitle; or

  (4) payment to the political subdivision for any other legal purpose.

(b)

  (1) Subject to paragraph (2) of this subsection, the political subdivision that has created a special fund for a development district, a RISE zone, or a sustainable community may pledge under an agreement that amounts deposited to the special fund shall be paid over to secure payment on MEDCO obligations.

  (2) The agreement shall:

    (i) be in writing;

    (ii) be executed by the political subdivision making the pledge, the Maryland Economic Development Corporation, and the other persons that the governing body of the political subdivision determines; and

    (iii) run to the benefit of and be enforceable on behalf of the holders of the MEDCO obligations secured by the agreement.

(c) If bonds are outstanding with respect to a development district, a RISE zone, or a sustainable community, the special fund may be used as described in subsection (a) of this section in any fiscal year only if:

  (1) the balance of the special fund exceeds the unpaid debt service payable on the bonds in the fiscal year; and

  (2) the special fund is not restricted so as to prohibit the use.

(d) The issuance of bonds pledging the full faith and credit of the political subdivision shall comply with appropriate county or municipal charter requirements.

#### Section 12-210

(a)

  (1) Subject to paragraph (2) of this subsection, the governing body of a political subdivision that is not the issuer may pledge under an agreement that its property taxes levied on the tax increment shall be paid into the special fund for the development district, a RISE zone, or a sustainable community.

  (2) The agreement shall:

    (i) be in writing;

    (ii) be executed by the governing bodies of the issuer and the political subdivision making the pledge; and

    (iii) run to the benefit of and be enforceable on behalf of any bondholder.

  (3)

    (i) This paragraph applies only in Prince George's County.

    (ii) Subject to Sec. 18-310 of the Land Use Article and notwithstanding Sec.Sec. 18-304, 18-306(d), and 18-307(b) of the Land Use Article, the Maryland-National Capital Park and Planning Commission may enter into an agreement with Prince George's County to pay all or a portion of the property taxes levied by the county under Sec.Sec. 18-304, 18-306, and 18-307 of the Land Use Article on the tax increment in an extraordinary development district in the county to the county for deposit into a special fund for the extraordinary development district and to pledge those taxes as security for bonds issued by Prince George's County.

    (iii) The agreement authorized under subparagraph (ii) of this paragraph shall:

      (1) be in writing; and

      (2) be executed by the governing body of Prince George's County and, on proper authorization, the Maryland-National Capital Park and Planning Commission.

    (iv) The Maryland-National Capital Park and Planning Commission may not be an obligor for any bonds issued by Prince George's County for an extraordinary development district.

(b) The governing body of Prince George's County may also pledge hotel rental tax revenues to the special fund.

(c) The governing body of a political subdivision, including the issuer, may pledge by or under a resolution, including by an agreement with the issuer, as applicable, that alternative local tax revenues generated within, or that are otherwise determined to be attributable to, a development district that is a transit-oriented development, a RISE zone, a sustainable community, or a State hospital redevelopment be paid, as provided in the resolution, into the special fund to:

  (1) secure the payment of debt service on bonds or MEDCO obligations; or

  (2) be applied to the other purposes stated in Sec. 12-209 of this subtitle.

(d)

  (1) With the approval by resolution of the governing body of a political subdivision, the Maryland Economic Development Corporation may pledge alternative revenues generated within or otherwise directly attributable to a project located in an approved development district, a transit-oriented development, a RISE zone, a sustainable community, or a State hospital redevelopment.

  (2) The revenues pledged in accordance with paragraph (1) of this subsection shall be paid, as provided in the resolution, into the special fund for the development district, transit-oriented development, RISE zone, sustainable community, or State hospital redevelopment to:

    (i) secure the payment of debt service on bonds or MEDCO obligations;

    (ii) support the Strategic Infrastructure Revolving Loan Fund established under Sec. 10-134 of this division; or

    (iii) be applied to the other purposes stated in Sec. 12-209 of this subtitle.

#### Section 12-211

(a) The principal amount of bonds, interest payable on bonds, the transfer of bonds, and income from bonds, including profit made in the sale or transfer of bonds, are exempt from State and local taxes.

(b) If a political subdivision leases as a lessor its property within a development district, a RISE zone, or a sustainable community:

  (1) the property shall be assessed and taxed in the same manner as privately owned property; and

  (2) the lease shall require the lessee to pay taxes or payments in lieu of taxes on the assessed value of the entire property and not only on the assessed value of the leasehold interest.

#### Section 12-212

This subtitle does not authorize a county or a municipal corporation to acquire property by eminent domain.

#### Section 12-213

This subtitle may be cited as the Tax Increment Financing Act.

### Subtitle 3. Redevelopment Bonds

#### Section 12-301

(a) In this subtitle the following words have the meanings indicated.

(b) "Bond" means a bond, note, or other similar instrument that a political subdivision issues under this subtitle.

(c) "Chief executive" means the president, chair, mayor, county executive, or any other chief executive officer of a political subdivision.

(d) "Designated blighted area" means an area designated under Sec. 12-303 of this subtitle.

(e) "Financed area" means the geographic portion of a designated blighted area for which the proceeds of a bond are to be used under Sec. 12-303 of this subtitle.

(f) "Political subdivision" means a county or municipal corporation.

#### Section 12-302

(a) To issue a bond, a political subdivision shall adopt an ordinance or resolution that:

  (1) describes the proposed undertaking to be financed by the bond proceeds;

  (2) requires compliance with Sec. 12-303 of this subtitle before the bond is issued; and

  (3) specifies the maximum principal amount of the bond.

(b) As the political subdivision considers appropriate to effect the financing of the proposed undertaking, the ordinance or resolution may:

  (1) specify the items listed in subsection (c) of this section;

  (2) authorize the finance board of the political subdivision to specify those items by resolution or ordinance; or

  (3) authorize the chief executive of the political subdivision to specify those items by executive order.

(c) For each issuance of a bond, the political subdivision may specify:

  (1) the principal amount;

  (2) the interest rate or, for floating or variable rates of interest, the method to determine the interest rate;

  (3) the manner and terms of sale, including whether by competitive or negotiated sale;

  (4) the time of execution, issuance, and delivery;

  (5) the form and denomination;

  (6) the source, manner, times, and places to pay principal or interest;

  (7) conditions for redemption before maturity;

  (8) the actions taken to comply with Sec. 12-307 of this subtitle;

  (9) the purposes for which proceeds may be spent;

  (10) the source of security; and

  (11) other provisions that the governing body of the political subdivision determines are necessary or desirable to effect the financing of the proposed undertaking.

#### Section 12-303

(a) Before a political subdivision issues a bond, the political subdivision shall pass an ordinance or administrative resolution that:

  (1) designates an area in the political subdivision as a designated blighted area based on the substantial presence of:

    (i) excessive vacant land on which structures were previously located;

    (ii) abandoned or vacant buildings;

    (iii) substandard structures;

    (iv) delinquencies in real property tax payments; or

    (v) similar factors that the political subdivision determines indicate blight;

  (2) designates the financed area for which the proceeds of the bond are to be used; and

  (3) adopts a redevelopment plan for the designated blighted area.

(b)

  (1) Before a county may designate a blighted area or financed area that lies wholly or partly in a municipal corporation, the municipal corporation shall consent to the designation of the part of the area that is within the municipal corporation.

  (2) Before a municipal corporation may designate a blighted area or financed area, the county that contains the area shall consent to the designation.

  (3) Consent under this subsection shall be made by ordinance or administrative resolution.

(c) A political subdivision that issues a bond as a qualified redevelopment bond under the Internal Revenue Code shall comply with federal law in determining:

  (1) the designated blighted area and the financed area to which the bond relates; and

  (2) any other designated blighted areas in the political subdivision.

#### Section 12-304

(a) The General Assembly intends that general obligation debt may be incurred by issuing bonds if the purposes for the debt include the purposes for issuing bonds under this subtitle.

(b) Subject to subsections (c) and (d) of this section, a political subdivision may issue bonds to finance the redevelopment of a designated blighted area in accordance with the procedures of the political subdivision for authorization to sell and issue bonds.

(c) A bond issued in accordance with an ordinance or resolution that pledges the full faith and credit of a political subdivision is subject to:

  (1) any applicable requirements of the Constitution and the political subdivision's charter and laws on referendum for the issuance of general obligation debt; and

  (2) each limitation imposed by public general law, public local law, or charter on general obligation debt of the political subdivision.

(d)

  (1) This subsection does not apply to a county that is a charter county, as defined in Sec. 1-101 of the Local Government Article, or a code county, as defined in Sec. 1-101 of the Local Government Article.

  (2) A county may not issue bonds that are secured by the full faith and credit of the county unless the amount of bonds to be issued by the county under this subtitle is first authorized by the General Assembly.

#### Section 12-305

(a) Except as provided in subsection (b) of this section, the ordinance or resolution described in Sec. 12-303 of this subtitle may provide that a bond may be secured and made payable from any combination of:

  (1) a pledge of the full faith and credit of the political subdivision and payable by taxes of general applicability;

  (2) an increase in real property tax revenues that is attributable to increases in assessed value in designated blighted areas resulting from carrying out the purposes for which the bond is issued;

  (3) revenues of the project or undertaking for which the bond is issued;

  (4) proceeds of bonds; or

  (5) other money that may be legally made available to pay the bond.

(b) A bond issued by Baltimore City may not be secured under subsection (a)(2) of this section.

#### Section 12-306

(a) The ordinance or resolution described in Sec. 12-308 of this subtitle may provide that bond proceeds may be spent on any combination of:

  (1) the following redevelopment purposes in a designated blighted area:

    (i) acquisition of real property by the political subdivision;

    (ii) clearing and preparing the real property;

    (iii) rehabilitating the real property; and

    (iv) relocating occupants of the real property;

  (2) other purposes that the local jurisdiction determines to be incidental, necessary, or appropriate to the redevelopment of the designated blighted area, including construction of new structures or the enlargement of existing structures; and

  (3) expenses of preparing, printing, selling, and issuing bonds, and funding reserves and interest on the bonds, in the amounts and for the time that the political subdivision considers reasonable.

(b) Subject to subsection (c) of this section, money from the federal government, the State, or otherwise legally available for the purposes described in subsection (a) of this section may be spent for any of those purposes.

(c) Expenditures under this section shall first be authorized in accordance with applicable laws.

#### Section 12-307

(a) By written agreement with the issuer of a bond, a political subdivision that is not the issuer may:

  (1) pledge to the payment of the bond any real property tax revenues attributable to increases in assessed value increase of property in designated blighted areas resulting from carrying out the purposes for which the bond is issued; and

  (2) make covenants about real property taxes and other charges in a designated blighted area as it considers appropriate.

(b) An agreement made under this section may be for the benefit and be enforceable on behalf of any bondholder.

#### Section 12-308

(a) A bond:

  (1) may be in bearer form;

  (2) may be registrable as to principal alone or as to both principal and interest; and

  (3) is a "security" under Sec. 8-102 of the Commercial Law Article, whether or not the bond is one of a class or series or is divisible into a class or series of instruments.

(b)

  (1) A bond shall be signed manually or in facsimile by the chief executive of the political subdivision.

  (2) An officer's signature or facsimile signature on a bond remains valid even if the officer leaves office before the bond is delivered.

  (3) The seal of the political subdivision shall be affixed to the bond and attested by the clerk or other similar administrative officer of the political subdivision.

(c)

  (1) A bond shall mature not later than 40 years after the date of issue.

  (2) Bonds may be issued as serial bonds or term bonds with provisions for a mandatory sinking fund or other annual principal redemption beginning not later than 3 years after the date of issue.

(d)

  (1) A bond shall be sold in the manner, at public or private (negotiated) sale, and on the terms at, above, or below par, as the political subdivision considers best.

  (2) A contract to acquire property may provide that payments shall be made in bonds.

  (3) A bond is not subject to Sec.Sec. 19-205 and 19-206 of the Local Government Article.

#### Section 12-309

(a) A bond, the transfer of a bond, the interest payable on a bond, the income derived from a bond, and the profit realized on sale or exchange of a bond are exempt from State and local taxes.

(b) A political subdivision may issue bonds under this subtitle without regard to their federal tax status.

#### Section 12-310

For purposes of an action involving the validity or enforceability of a bond or security for a bond, a finding by a political subdivision is conclusive as to:

(1) the public purpose of an action taken under this subtitle; and

(2) any other matter relating to the issuance of a bond.

#### Section 12-311

This subtitle does not authorize a political subdivision to acquire property by eminent domain.

#### Section 12-312

This subtitle may be cited as the Redevelopment Bond Act.

### Subtitle 4. Business Improvement Districts

#### Section 12-401

(a) In this subtitle the following words have the meanings indicated.

(b) "Board" means the board of directors of a district corporation.

(c) "Commercial tenant" means a lessee or other lawful occupant, other than the owner, of nonexempt property within a district.

(d) "District" means a business improvement district established under this subtitle.

(e) "District corporation" means a business improvement district corporation formed in accordance with this subtitle.

(f) "Members of the district" means owners of nonexempt property in the district.

(g) "Nonexempt property" means nonresidential real property that is not exempt from paying real property taxes.

#### Section 12-402

The legislative purposes of this subtitle are to:

(1) provide for the creation of business improvement districts; and

(2) promote the general welfare of the residents, employers, employees, property owners, commercial tenants, consumers, and the general public within the geographic area of the business improvement districts.

#### Section 12-402.1

This subtitle does not apply in Montgomery County or Prince George's County.

#### Section 12-403

(a) Subject to a public hearing under Sec. 12-408 of this subtitle and to accomplish one or more of the legislative purposes listed in Sec. 12-402 of this subtitle, the legislative body of a county or municipal corporation may adopt a local law to create a business improvement district in accordance with this subtitle.

(b) Subsection (a) of this section is self-executing and fully authorizes a county or municipal corporation to establish a district, notwithstanding any other statutory or charter provision.

(c) A local law adopted under subsection (a) of this section shall include:

  (1) the name of the district corporation;

  (2) that the district corporation is formed under this subtitle;

  (3) the names, addresses, and terms of office of the initial members of the board of directors of the district corporation;

  (4) the address of the principal office of the district corporation;

  (5) the purposes for which the district is formed;

  (6) the powers of the district, subject to the limitations on the powers of districts under this subtitle; and

  (7) if applicable, articles of incorporation of the district corporation.

#### Section 12-404

(a) A board of directors shall govern the district corporation.

(b)

  (1) Subject to paragraph (2) of this subsection, the board of a district corporation consists of five members appointed by the members of the district.

  (2) Appointment procedures shall be provided in the local law establishing the district.

(c) From among its members, the board shall elect a chair and other officers.

(d)

  (1) Three voting members of the board are a quorum.

  (2) The board may act on a resolution only by the affirmative vote of at least three voting members.

(e) A member of the board:

  (1) may not receive compensation as a member of the board; but

  (2) shall be reimbursed for expenses incurred in performing the member's duties.

(f) The board shall exercise its powers by resolution.

(g) The board shall file an annual report with the governing body of the county or municipal corporation that includes:

  (1) a financial statement for the preceding year;

  (2) a proposed operating budget for the current fiscal year;

  (3) any proposed revisions to the business plan; and

  (4) a narrative statement or chart showing the results of operations in comparison to stated goals and objectives.

#### Section 12-405

The net earnings of a district corporation may benefit only the district corporation.

#### Section 12-406

(a)

  (1) Except as limited by its articles of incorporation, a district corporation has all the powers set forth in this subtitle.

  (2) A district corporation may:

    (i) receive money from its incorporating county or municipal corporation, the State, other governmental units, or nonprofit organizations;

    (ii) charge fees for its services;

    (iii) have employees and consultants as it considers necessary; and

    (iv) use the services of other governmental units.

(b) A district corporation shall operate and exercise its powers solely to accomplish one or more of the legislative purposes of this subtitle.

#### Section 12-407

(a) The owners of nonexempt property who seek to establish a district corporation shall submit appropriate documentation as described in subsection (b) of this section to:

  (1) the governing body of the county in which the proposed district is located; and

  (2) if the proposed district is located within a municipal corporation, the governing body of the municipal corporation.

(b) The appropriate documentation required under subsection (a) of this section shall contain:

  (1) a statement setting forth:

    (i) the proposed name and address of the district corporation; and

    (ii) the street address of each owner of nonexempt property within the proposed district;

  (2) a statement expressing the intent to establish a district corporation that is signed by at least 80% of the owners of the total number of parcels of nonexempt property in the geographic area of the proposed district;

  (3) a proposed 3-year business plan that contains:

    (i) the goals and objectives of the proposed district;

    (ii) the annual proposed business improvement district tax for the proposed district's common operations and the formula used to determine each member's district tax; and

    (iii) the maximum amount and the nature of start-up costs incurred before the district's establishment;

  (4) a tax assessor's map of the geographic area of the proposed district;

  (5) a list of the proposed initial board of the proposed district corporation;

  (6) the proposed articles of incorporation and the bylaws of the district corporation;

  (7) for all nonexempt property within the proposed district:

    (i) the name and mailing address of each owner; and

    (ii) the most recent assessed value; and

  (8) a list of the names and addresses of all commercial tenants within the geographic area of the proposed district.

(c) Within 45 days after receiving all appropriate documentation under subsection (b) of this section, the governing body of a county or municipal corporation shall schedule a public hearing on the application.

#### Section 12-408

(a) At least 21 days before the public hearing, the governing body of a county or municipal corporation shall publish notice of the public hearing in a newspaper of general circulation within the geographic area of the proposed district.

(b) At least 21 days before the public hearing, the owners of nonexempt property who seek to establish a district shall send notice of the public hearing and a summary of the application to:

  (1) each owner of nonexempt property within the proposed district; and

  (2) each commercial tenant within the proposed district.

(c) Before the public hearing, the application shall be made available for review during normal business hours in at least one location in the proposed district.

(d) Within 10 days after the public hearing, if the governing body of the county or municipal corporation determines that the needs of the district meet the purposes of this subtitle, the governing body shall authorize the district in accordance with Sec. 12-403 of this subtitle.

#### Section 12-409

(a) Within 10 days after the authorization by the governing body of the county or municipal corporation of the district, the district corporation shall provide the governing body of the county or municipal corporation with a preliminary business improvement district tax roll.

(b)

  (1) The governing body of the county or municipal corporation shall impose a business improvement district tax to provide funds for the operation of the district.

  (2) The governing body of the county or municipal corporation shall impose on members of the district the district tax at a rate specified by the board and approved by the governing body.

  (3) The tax imposed under this subsection may not count against a county or municipal corporation tax cap.

(c) The district tax shall be collected in the same manner as real property taxes are collected and distributed each quarter to the district.

(d) A district shall reimburse the governing body of a county or municipal corporation for the costs incurred in collecting the district tax.

#### Section 12-410

An established district may expand the geographic area of the district if:

(1) a petition for inclusion is submitted from at least 80% of the owners of the total number of parcels of nonexempt property in the geographic area proposed for inclusion in the district;

(2) the petition under item (1) of this subsection is accepted by a majority vote of the board of the district corporation; and

(3) the appropriate documents, as applicable, are submitted under Sec. 12-407 of this subtitle and a hearing is held under Sec. 12-408 of this subtitle.

#### Section 12-411

(a) The governing body of a county or municipal corporation in which a district is established under this section shall:

  (1) review the effectiveness and desirability of continuing the district every 3 years from the time the district is authorized by local law under Sec. 12-403 of this subtitle; and

  (2) develop policies and procedures for evaluating the desirability of continuing the district if requested by owners of nonexempt property in the district.

(b) If the continuing existence of the district is not approved by the governing body:

  (1) the district shall cease to exist as directed by the governing body; and

  (2) the district corporation shall continue its existence only as long as necessary to terminate operation in a reasonable manner.

### Subtitle 5. Montgomery County Equity Investments in Companies Located in the County

#### Section 12-501

(a) Notwithstanding any other provision of law, Montgomery County may make an equity investment through the county's Economic Development Fund in a company that is located in Montgomery County or that agrees to relocate its business to Montgomery County.

(b) The proceeds of an equity investment made under subsection (a) of this section may be used for:

  (1) working capital;

  (2) salaries;

  (3) marketing materials;

  (4) acquisition of inventory, equipment, or real property;

  (5) construction;

  (6) renovation;

  (7) leasehold improvements; or

  (8) research and development.

(c) The county may not acquire an ownership interest exceeding 25% of any enterprise.

(d)

  (1) The terms of an equity investment approved by the county shall be set forth in a funding agreement.

  (2) A funding agreement made under paragraph (1) of this subsection shall prohibit the county from:

    (i) participating in the selection of the management of the company;

    (ii) engaging in oversight of the operation of the company; or

    (iii) assuming any present or future liability of the company.

  (3) At the county's discretion, a funding agreement made under paragraph (1) of this subsection may consist of:

    (i) an investment agreement;

    (ii) a limited partnership agreement;

    (iii) a preferred stock purchase agreement; or

    (iv) other documents that the county may require.

(e) Notice of each equity investment made by Montgomery County under subsection (a) of this section shall be posted in a readily accessible and clearly identified location on the Montgomery County government website within 5 days after the date on which the county initiates the equity investment transaction.

### Subtitle 6. Montgomery County -- Business Improvement Districts

#### Section 12-601

(a) In this subtitle the following words have the meanings indicated.

(b) "Board" means the board of directors of a district corporation.

(c) "Commercial tenant" means a lessee or other lawful occupant, other than the owner, of nonexempt property within a district.

(d) "Condominium" has the meaning stated in Sec. 11-101 of the Real Property Article.

(e) "Cooperative housing corporation" has the meaning stated in Sec. 5-6B-01 of the Corporations and Associations Article.

(f) "District" means a business improvement district established under this subtitle.

(g) "District corporation" means a business improvement district corporation formed in accordance with this subtitle.

(h) "Homeowners association" has the meaning stated in Sec. 11B-101 of the Real Property Article.

(i) "Members of the district" means owners of nonexempt property and commercial tenants in the district.

(j) "Nonexempt property" means all real property that is not exempt from paying real property taxes except:

  (1) condominium units and cooperative housing corporation units that exist on or before the date of establishment of a district;

  (2) homeowners associations; or

  (3) residential property with fewer than four dwelling units.

#### Section 12-602

The legislative purposes of this subtitle are to:

(1) provide for the creation of business improvement districts within Montgomery County; and

(2) promote the general welfare of the residents, employers, employees, property owners, commercial tenants, consumers, and the general public within the geographic area of the business improvement districts.

#### Section 12-603

This subtitle applies only in Montgomery County.

#### Section 12-604

(a) Subject to a public hearing under Sec. 12-609 of this subtitle and to accomplish a legislative purpose listed in Sec. 12-602 of this subtitle, the  governing body of the county or a municipal corporation in the county may adopt a local law to create a business improvement district in accordance with this subtitle.

(b) Subsection (a) of this section is self-executing and fully authorizes the county or a municipal corporation in the county to establish a district, notwithstanding any other statutory or charter provision.

(c) A local law adopted under subsection (a) of this section shall include:

  (1) the name of the district corporation;

  (2) that the district corporation is formed under this subtitle;

  (3) the names, addresses, and terms of office of the initial members of the board of directors of the district corporation;

  (4) the address of the principal office of the district corporation;

  (5) the purposes for which the district is formed;

  (6) the powers of the district, subject to the limitations on the powers of districts under this subtitle; and

  (7) if applicable, articles of incorporation of the district corporation.

#### Section 12-605

(a) A board of directors shall govern the district corporation.

(b)

  (1) Subject to paragraphs (2) and (3) of this subsection:

    (i) except as provided in item (ii) of this paragraph, the board of a district corporation consists of at least 11 members; or

    (ii) the governing body of the county or a municipal corporation in the county in which a district is established may determine a different number of members for the board if the district is connected with a business improvement district in another county, state, or in the District of Columbia.

  (2) Subject to paragraph (3) of this subsection, appointment procedures shall be provided in the local law establishing the district.

  (3)

    (i) Owners of nonexempt property shall elect owner members.

    (ii)

      (1) Commercial tenants shall elect commercial tenant members in accordance with an election process that is established by the governing body of the county or a municipal corporation in the county in which the district is located.

      (2) To the extent practicable, the election process shall reflect the diversity of businesses and other organizations in the district.

(c) From among its members, the board shall elect a chair and other officers.

(d)

  (1) A majority of the voting members of the board is a quorum.

  (2) The board may act on a resolution only by the affirmative vote of a majority of the voting members.

(e) A member of the board:

  (1) may not receive compensation as a member of the board; but

  (2) shall be reimbursed for expenses incurred in performing the member's duties.

(f) The board shall exercise its powers by resolution.

(g) The board shall file an annual report with the governing body of the county or a municipal corporation in the county that includes:

  (1) a financial statement for the preceding year;

  (2) a proposed operating budget for the current fiscal year;

  (3) any proposed revisions to the business plan; and

  (4) a narrative statement or chart showing the results of operations in comparison to stated goals and objectives.

#### Section 12-606

The net earnings of a district corporation may benefit only the district corporation.

#### Section 12-607

(a)

  (1) Except as limited by its articles of incorporation, a district corporation has all the powers set forth in this subtitle.

  (2) A district corporation may:

    (i) receive money from its incorporating county or municipal corporation, the State, other governmental units, or nonprofit organizations;

    (ii) charge fees for its services;

    (iii) have employees and consultants as it considers necessary; and

    (iv) use the services of other governmental units.

(b) A district corporation shall operate and exercise its powers solely to accomplish one or more of the legislative purposes of this subtitle.

#### Section 12-608

(a) The owners of nonexempt property who seek to establish a district corporation shall submit appropriate documentation as described in subsection (b) of this section to:

  (1) the governing body of the county; and

  (2) if the proposed district is located within a municipal corporation in the county, the governing body of the municipal corporation.

(b) The appropriate documentation required under subsection (a) of this section shall contain:

  (1) a statement setting forth:

    (i) the proposed name and address of the district corporation; and

    (ii) the street address of each owner of nonexempt property and to the extent reasonably ascertainable, each commercial tenant within the proposed district;

  (2) a statement expressing the intent to establish a district corporation that is signed by:

    (i) owners of at least 51% interest in the assessed value of the nonexempt property and, subject to subsection (c) of this section, a designated board member of a condominium or cooperative housing corporation within the proposed district; and

    (ii) owners of at least 51% of the total number of parcels of nonexempt property and, subject to subsection (c) of this section, a designated board member of a condominium or cooperative housing corporation within the proposed district;

  (3) a proposed 3-year business plan that contains:

    (i) the goals and objectives of the proposed district;

    (ii) the annual proposed business improvement district tax for the proposed district's common operations and the formula used to determine each member's district tax; and

    (iii) the maximum amount and the nature of start-up costs incurred before the district's establishment;

  (4) a tax assessor's map of the geographic area of the proposed district;

  (5) a list of the proposed initial board of the proposed district corporation;

  (6) the proposed articles of incorporation and the bylaws of the district corporation; and

  (7) for all nonexempt property within the proposed district:

    (i) the name and mailing address of each owner; and

    (ii) the most recent assessed value.

(c)

  (1) Notwithstanding any other provision of this title, subject to paragraph (2) of this subsection, a condominium or cooperative housing corporation that is located in the proposed district may petition to join the district corporation.

  (2) A condominium or cooperative housing corporation described under paragraph (1) of this subsection may petition to join the district only if:

    (i) the condominium or cooperative housing corporation is governed by a board;

    (ii) the board votes to join the district corporation; and

    (iii) the board has a representative member of the board sign the appropriate documents required under subsection (b)(2) of this section.

  (3) For the purposes of the votes cast under subsection (b)(2) of this section:

    (i) a condominium or cooperative housing corporation shall be considered a single parcel; and

    (ii) the decision reached by the board shall constitute the vote of the condominium or cooperative housing corporation.

(d) Within 45 days after receiving all appropriate documentation under subsection (b) of this section, the governing body of the county or a municipal corporation in the county shall schedule a public hearing on the application.

#### Section 12-609

(a) At least 21 days before the public hearing, the governing body of the county or a municipal corporation in the county shall publish notice of the public hearing in a newspaper of general circulation within the geographic area of the proposed district.

(b) The owners of nonexempt property who seek to establish a district shall send notice of the public hearing and a summary of the application to each owner and, to the extent reasonably ascertainable, each commercial tenant of nonexempt property within the proposed district at least 90 days before the public hearing or when owners of at least 20% of the total number of parcels of nonexempt property express the intent to establish a district, whichever is earlier.

(c) Before the public hearing, the application shall be made available for review during normal business hours in at least one location in the proposed district.

(d) Within 10 days after the public hearing, if the governing body of the county or a municipal corporation in the county determines, in the sole discretion of the governing body, that the needs of the district meet a purpose of this subtitle, the governing body may authorize the district in accordance with Sec. 12-604 of this subtitle.

#### Section 12-610

(a) Within 10 days after the authorization of the district by the governing body of the county or a municipal corporation in the county, the district corporation shall provide the governing body of the county or a municipal corporation in the county with a preliminary business improvement district tax roll.

(b)

  (1) The governing body of the county or a municipal corporation in the county shall impose a business improvement district tax to provide funds for the operation of the district.

  (2) The governing body of the county or a municipal corporation in the county shall impose on members of the district who are owners of nonexempt property the district tax at a rate specified by the board and approved by the governing body.

  (3) The tax imposed under this subsection may not count against a county or municipal corporation tax cap.

(c) The district tax shall be collected in the same manner as real property taxes are collected and distributed each quarter to the district.

(d) A district shall reimburse the governing body of the county or a municipal corporation in the county for the costs incurred in collecting the district tax.

#### Section 12-611

(a) An established district may expand the geographic area of the district if:

  (1) a petition for inclusion is submitted from:

    (i) owners of at least 51% interest in the assessed value of the nonexempt property and, subject to subsection (b) of this section, a designated board member of a condominium or cooperative housing corporation proposed for inclusion in the district; and

    (ii) owners of at least 51% of the total number of parcels of nonexempt property and, subject to subsection (b) of this section, a designated board member of a condominium or cooperative housing corporation proposed for inclusion in the district;

  (2) the petition under item (1) of this subsection is accepted by a majority vote of the board of the district corporation; and

  (3) the appropriate documents, as applicable, are submitted under Sec. 12-608 of this subtitle and a hearing is held under Sec. 12-609 of this subtitle.

(b)

  (1) Notwithstanding any other provision of this title and subject to paragraph (2) of this subsection, a condominium or cooperative housing corporation that is located in the proposed expanded geographic area of the district may petition to join the expansion.

  (2) A condominium or cooperative housing corporation described under paragraph (1) of this subsection may petition to join the expansion only if:

    (i) the condominium or cooperative housing corporation is governed by a board;

    (ii) the board votes to join the district corporation; and

    (iii) the board has a representative member of the board sign the appropriate documents required under Sec. 12-608 of this subtitle.

  (3) For the purposes of the votes cast under subsection (a)(1) of this section:

    (i) a condominium or cooperative housing corporation shall be considered a single parcel; and

    (ii) the decision reached by the board shall constitute the vote of the condominium or cooperative housing corporation.

#### Section 12-612

(a) The governing body of the county or a municipal corporation in the county in which a district is established under this subtitle shall:

  (1) review the effectiveness and desirability of continuing the district every 3 years from the time the district is authorized by local law under Sec. 12-604 of this subtitle; and

  (2) develop policies and procedures for evaluating the desirability of continuing the district if requested by members of the district.

(b) If the continuing existence of the district is not approved by the governing body:

  (1) the district shall cease to exist as directed by the governing body; and

  (2) the district corporation shall continue its existence only as long as necessary to terminate operation in a reasonable manner.

### Subtitle 7. Baltimore City -- West North Avenue Development Authority

#### Section 12-701

(a) In this subtitle the following words have the meanings indicated.

(b) "Authority" means the West North Avenue Development Authority.

(c) "Board" means the Board of Directors of the Authority.

(d) "Buffer zone" means the area within 250 yards of the target area.

(e) "Target area" means the portion of West North Avenue in Baltimore City between the 600 block and the 3200 block, inclusive.

(f) "West North Avenue Corridor" includes the geographic area consisting of the target area and the buffer zone.

#### Section 12-702

This subtitle shall be liberally construed to accomplish its purposes. 

#### Section 12-703

(a) There is a West North Avenue Development Authority in Baltimore City.

(b) The Authority is a body politic and corporate and is an instrumentality of the State.

(c) The exercise by the Authority of a power under this subtitle is the performance of an essential governmental function.

(d) The Governor may include each year in the State budget bill an appropriation to the  Authority in Baltimore City.

(e) Beginning fiscal year 2028, the Authority shall be self-sustaining.

#### Section 12-704

(a) The General Assembly finds that:

  (1) there exists within various neighborhoods in Baltimore City, particularly the West North Avenue Corridor, a need for residential and commercial development or redevelopment in furtherance of the public's interest;

  (2) the West North Avenue Corridor has experienced low housing and economic development in the community for decades;

  (3) areas in the West North Avenue Corridor include both areas that are considered slum or blighted and areas that are deteriorated or subject to further deteriorating condition, and those areas are in need of development or redevelopment for the public benefit;

  (4) the revitalization of areas within the West North Avenue Corridor needing commercial development or redevelopment is an essential governmental function and is a public use that will confer a public benefit on citizens of Baltimore City by:

    (i) relieving conditions of unemployment;

    (ii) encouraging the increase of commerce and a balanced economy;

    (iii) assisting in the retention of businesses and residents;

    (iv) attracting new industries and commerce;

    (v) promoting economic development and growth; and

    (vi) generally promoting the health, welfare, and public safety of residents in Baltimore City and increasing property tax revenues for the State and the City of Baltimore;

  (5) the establishment of this public Authority to provide financial resources for the development and establishment of residences and businesses through community organizations in the target area will significantly improve Baltimore City neighborhoods and increase property tax revenues for the State and the City of Baltimore; and

  (6) the Authority is the economic development authority for the State to benefit the neighborhoods of Baltimore City within the target area.

(b) The legislative purposes of the Authority are to:

  (1) revive the various communities along the West North Avenue Corridor in Baltimore City;

  (2) promote economic development;

  (3) encourage the increase of business activity, commerce, and a balanced economy in Baltimore City;

  (4) help to retain and attract business activity and commerce in Baltimore City; and

  (5) promote the health, public safety, right of gainful employment, and welfare of residents of Baltimore City.

(c) The General Assembly intends that:

  (1) the Authority operate and exercise its corporate powers along the West North Avenue Corridor in Baltimore City;

  (2) without limiting its authority to otherwise exercise its powers, the Authority exercise its powers to assist private real estate entities and nonprofit community development corporations to develop and rehabilitate housing and commercial units in Baltimore City and support local economic development agencies to contribute to the expansion, modernization, and retention of existing enterprises in Baltimore City as well as the attraction of new businesses to Baltimore City; and

  (3) the Authority should not own and operate a project unless:

    (i) the Board determines by resolution that the private sector has not demonstrated serious and significant interest and development capacity to own and operate the project; or

    (ii) a representative of a governmental unit requests in writing that the Authority own and operate the project.

#### Section 12-705

(a)

  (1) Except as otherwise provided in this section, in exercising its powers, the Authority:

    (i) may carry out its purposes without the consent of any State unit; and

    (ii) is not subject to:

      (1) Subtitles 1 through 3 of this title; or

      (2) the following provisions of the State Finance and Procurement Article:

      (A) Title 2, Subtitles 2 (Gifts and Grants) and 5 (Facilities for the Handicapped);

      (B) Title 3 (Budget and Management);

      (C) Title 4 (Department of General Services);

      (D) Title 5A (Division of Historical and Cultural Programs);

      (E) Title 6, Subtitle 1 (Studies and Estimates);

      (F) Title 7, Subtitles 1 (State Operating Budget), 2 (Disbursements and Expenditures), and 3 (Unspent Balances);

      (G) Title 10 (Board of Public Works - Miscellaneous Provisions); or

      (H) Division II (General Procurement Law).

  (2) The Authority is subject to:

    (i) the Public Information Act; and

    (ii) the Open Meetings Act.

(b) The Authority, its officers, and its employees are subject to the Public Ethics Law.

(c) The Authority, its officers, and its employees are subject to Title 12, Subtitle 4 of the State Finance and Procurement Article.

(d) The Authority is subject to Title 14, Subtitle 3 of the State Finance and Procurement Article.

#### Section 12-706

(a) A Board of Directors shall manage the Authority and exercise its powers.

(b) The Board consists of the following members:

  (1) one member of the Senate of Maryland who represents the target area, appointed by the President of the Senate;

  (2) one member of the House of Delegates who represents the target area, appointed by the Speaker of the House;

  (3) the Secretary of Housing and Community Development, or the Secretary's designee;

  (4) the Secretary of Transportation, or the Secretary's designee;

  (5) the Secretary of Commerce, or the Secretary's designee;

  (6) the Executive Director of the Maryland Economic Development Corporation, or the Executive Director's designee;

  (7) one member of the Baltimore City Council who represents the target area, appointed by the President of the Baltimore City Council;

  (8) one member appointed by the Mayor of Baltimore City;

  (9) one member appointed by the Governor;

  (10) the Director of the Baltimore Development Corporation, or the Director's designee;

  (11) the Commissioner of the Baltimore City Department of Housing and Community Development, or the Commissioner's designee;

  (12) the Director of the Baltimore City Department of Transportation, or the Director's designee;

  (13) the Director of the Baltimore City Department of Planning, or the Director's designee;

  (14) the President of Coppin State University, or the President's designee;

  (15) the President of the Maryland Institute College of Art, or the President's designee;

  (16) two members appointed by the chair of the Authority, or the chair's designee; and

  (17) two members who are residents of communities impacted by the target area or buffer zone, with one member representing the neighborhoods east of North Fulton Avenue and one member representing the neighborhoods west of North Fulton Avenue, selected by the majority vote of the leadership of the following organizations:

    (i) Alliance of Rosemont Community Associations;

    (ii) Bolton Hill Community Association;

    (iii) Coppin Heights Community Development Corporation;

    (iv) Druid Heights Community Development Corporation;

    (v) Greater Mondawmin Coordinating Council;

    (vi) Penn North Community Association; and

    (vii) collectively, the leadership of the Reservoir Hill Improvement Council, the Reservoir Hill Association, and the Upper Eutaw Madison Neighborhood Association.

(c) The President of Coppin State University, or the President's designee, shall serve as the chair of the Board.

#### Section 12-707

(a) The Authority may manage appropriated funds from the City of Baltimore and the State.

(b) The Authority may receive donated services from accountants, lawyers, or other consultants as necessary to carry out this subtitle.

(c) The Authority may supervise, manage, and terminate staff and consultants as necessary.

#### Section 12-708

A member of the Authority:

(1) may not receive compensation as a member of the Authority; but

(2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

#### Section 12-709

(a) The Authority shall:

  (1) support the development and approval of a comprehensive neighborhood revitalization plan in the target area and the buffer zone to benefit:

    (i) the residents;

    (ii) housing;

    (iii) neighborhoods;

    (iv) economic development; and

    (v) transportation, including motor vehicles and pedestrians; and

  (2) work in coordination with the residents of the target area and the buffer zone to develop a comprehensive neighborhood revitalization plan.

(b) The Authority may, by a majority vote of all members of the Authority, modify the boundaries of the target area and the buffer zone.

(c) On or before December 15, 2023, the Authority shall report its comprehensive neighborhood revitalization strategy, including any procurement activities undertaken by the Authority, to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, to the Senate Budget and Taxation Committee, the House Health and Government Operations Committee, and the House Appropriations Committee.

#### Section 12-710

The Authority may:

(1) adopt bylaws for the conduct of its business;

(2) adopt a seal;

(3) sue or be sued;

(4) maintain an office at a place it designates in Baltimore City;

(5) make or accept and manage loans, grants, or assistance of any kind from the federal or State government, a local government, a college or university, a charitable institution, a nonprofit organization, a for-profit organization, or a private source;

(6) make grants to individuals;

(7) acquire properties in Baltimore City, directly or indirectly, from a person or political subdivision, to improve, manage, market, maintain, or lease, from a person or political subdivision for residential, commercial, or industrial development or redevelopment, including comprehensive renovation or rehabilitation of the land or property on terms the Authority considers reasonable to operate a project in Baltimore City, by:

  (i) purchase;

  (ii) gift;

  (iii) interest;

  (iv) condemnation;

  (v) eminent domain, except for owner-occupied residential properties;

  (vi) tax sale;

  (vii) foreclosure;

  (viii) receivership;

  (ix) in rem foreclosure proceedings;

  (x) easement, or any other interest in land;

  (xi) lease; and

  (xii) rent;

(8) acquire, purchase, hold, lease as lessee, and use:

  (i) a franchise, patent, or license;

  (ii) any real, personal, mixed, tangible, or intangible property; or

  (iii) an interest in the property listed in this item;

(9) finance all or part of the acquisition or improvement of a project;

(10) sell, lease as lessor, transfer, license, assign, or dispose of property or a property interest that the Authority acquires;

(11) fix and collect rates, rentals, fees, royalties, and charges for services and resources the Authority provides or makes available;

(12) enter into contracts with any federal, State, or local government agency, a governmental unit, a college or university, charitable institutions, or a private entity or party;

(13) exercise power usually possessed by a private corporation in performing similar functions unless to do so would conflict with State law;

(14) with the owner's permission, enter lands or premises to make a survey, a sounding, a boring, or an examination to accomplish the purpose authorized by this subtitle;

(15) create, own, control, or be a member of a corporation, limited liability company, partnership, or any other entity;

(16) create a special district benefit for the commercial businesses in the target area;

(17) open a bank account with a national or local federally insured financial institution;

(18) set salaries in accordance with the jurisdiction market rate and outside the State Personnel and Pension System;

(19) create a forum for stakeholders to come together on creating a 20-year comprehensive plan around economic, housing, transportation, neighborhood, and green space development within the target zone;

(20) serve as a clearinghouse and resource center for promoting coordination and communication on development opportunities for the West North Avenue Corridor;

(21) ensure money is being spent effectively and efficiently on development and that development is happening in the appropriate way for the West North Avenue Corridor;

(22) provide advisory services to State and Baltimore City agencies on planning and development for the target area;

(23) initiate, fund, and monitor for efficiency and effectiveness economic, housing, transportation, neighborhood, and green space development within the target area;

(24) make rules and regulations for the operation and use of land, property, and undertakings under the Authority's jurisdiction; and

(25) do all things necessary or convenient to carry out the powers expressly granted by this subtitle.

#### Section 12-711

(a) The Authority shall establish a system of financial accounting, controls, audits, and reports.

(b) The fiscal year of the Authority begins on July 1 and ends on the following June 30.

#### Section 12-712

(a) The Authority may create and administer the accounts that it requires.

(b) The Authority shall deposit its money into a Baltimore City or national bank or a federally insured savings and loan association that has a total paid-in capital of at least $1,000,000.

(c) The Authority may designate the trust department of a Baltimore City or national bank or savings and loan association as a depository to receive securities that the Authority owns or acquires.

#### Section 12-713

(a) Except as provided in subsection (b) of this section, 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.

(b) Any property that is sold or leased by the Authority to a private entity is subject to Baltimore City and local real property taxes from the time of sale or lease.

(c) The Authority is exempt from State and local transfer and recordation tax.

#### Section 12-714

(a) In this section, "Fund" means the West North Avenue Development Authority Fund.

(b) There is a West North Avenue Development Authority Fund.

(c) The purpose of the Fund is to provide funds for the Authority to use for consulting fees, salaries, and administrative expenses.

(d) The Authority shall administer the Fund.

(e)

  (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article.

  (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

(f) The Fund consists of:

  (1) money appropriated in the State budget to the Fund;

  (2) interest earnings; and

  (3) any other money from any other source accepted for the benefit of the Fund.

(g) The Fund may be used only for administrative purposes and to carry out the functions of this subtitle.

(h) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

(i) Expenditures from the Fund may be made only in accordance with the State budget.

#### Section 12-715

(a) In this section, "Program" means the Neighborhood Social Connection and Development Program.

(b) There is a Neighborhood Social Connection and Development Program in the Authority.

(c) The purpose of the Program is to foster social connections to support neighborhood development within the West North Avenue Corridor by:

  (1) providing technical support to participating organizations, including community development corporations, neighborhood associations, volunteer groups, and nonprofit organizations; and

  (2) awarding grants to implement programs that foster social connections and activities tailored to support neighborhood development.

(d)

  (1) The Authority shall award grants to implement the Program.

  (2) The Authority may annually set aside existing funds of not more than $150,000 for the purpose of awarding grants under the Program.

  (3) The Authority may award a grant under this section only for:

    (i) social gatherings, including block parties, cultural festivals, parades, speaker series, and service or recreational events;

    (ii) outreach initiatives, including neighborhood newsletters, community bulletins, or digital content, to raise awareness of social events and connect residents with available resources and services;

    (iii) stipends to compensate volunteers for the time used to organize projects, refreshments at Program designated events, rental and event spaces, and materials for Program events;

    (iv) operating support for participating organizations;

    (v) social connection projects to create and maintain green spaces or other community gathering spaces;

    (vi) resources for training and hiring community organizers; and

    (vii) resources for grant application efforts.

(e) Participating organizations shall collaborate with residents of the West North Avenue Corridor in the planning and implementation of events and projects to ensure that activities reflect neighborhood priorities and, to the extent practicable, that events and activities are led by residents.

(f) On or before July 1, 2029, the Authority shall compile evaluations and outcomes of programs to develop a template for neighborhood building and provide scaling recommendations to similar organizations in the State and across the United States.

(g) On or before December 1, 2027, and each December 1 thereafter, the Authority shall report to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly on its comprehensive grant-awarding activities.

### Subtitle 8. Baltimore County -- West Baltimore County Redevelopment Authority

#### Section 12-801

(a) In this subtitle the following words have the meanings indicated.

(b) "Authority" means the West Baltimore County Redevelopment Authority established under this subtitle.

(c) "Bond" or "bonds" means revenue bonds or notes, including bond anticipation notes and notes in the nature of commercial paper, or other instruments, certificates, or evidences of obligation issued and sold or offered for sale by the redevelopment authority, including refunding obligations.

(d) "Cost" means the cost or expense associated with:

  (1) all land, property, rights, easements, franchises, and licenses or interests therein deemed necessary for any undertaking authorized by this subtitle;

  (2) all labor, materials, machinery, furnishings, and equipment;

  (3) financing charges;

  (4) establishment of reserves;

  (5) interest prior to and during construction and for a reasonable period after completion of construction;

  (6) engineering, architectural, and legal services;

  (7) plans, specifications, surveys, estimates of costs and of revenues, and other expenses necessary or incident to determining the feasibility or practicality of any land or property acquisition or any development or redevelopment project;

  (8) administrative expenses;

  (9) letters or lines of credit, municipal bond insurance, or any other form of financial guaranty or surety;

  (10) working capital; and

  (11) other expenses as may be necessary or incidental to the acquisition of land or property, or the development or redevelopment, including the comprehensive renovation or rehabilitation, of land or property in accordance with this subtitle.

(e) "County" means Baltimore County.

(f) "West Baltimore County" means the geographic area of Baltimore County within the boundary line of Liberty Road in the north, Baltimore National Pike in the south, Rolling Road in the west, and the line between Baltimore County and Baltimore City in the east, along with all contiguous parcels for one block, except at the boundary line between Baltimore County and Baltimore City.

#### Section 12-802

This subtitle applies only in Baltimore County.

#### Section 12-803

(a) In addition to powers granted by law, the county is authorized, as specified by local law:

  (1) to acquire, within the boundary lines of West Baltimore County, land and property of every kind, and any right, interest, franchise, easement, or privilege in the property, by purchase, lease, gift, condemnation, or any other legal means, for residential, commercial, or industrial development or redevelopment, including comprehensive renovation or rehabilitation of the land or property;

  (2) to develop or redevelop, including the comprehensive renovation or rehabilitation of, any land or property acquired by any of the methods described under item (1) of this subsection; and

  (3) to sell, lease, convey, transfer, or otherwise dispose of any of the land or property, regardless of whether the land or property has been developed, redeveloped, altered, or improved and irrespective of the manner or means in or by which the land or property may have been acquired, to any private, public, or quasi-public corporation, partnership, association, person, or other legal entity for residential, commercial, or industrial development or redevelopment, including comprehensive renovation or rehabilitation of the land or property.

(b) Land or property taken by the county for any of the purposes described under subsection (a) of this section or in connection with the exercise of any of the powers that may be granted to the county under this section, or by any powers conferred by additional laws by exercising the power of eminent domain, may not be taken without just compensation, as agreed on between the parties or awarded by a jury, being first paid or tendered to the party entitled to that compensation.

(c) All land or property needed, or taken by the exercise of the power of eminent domain, by the county for any of the purposes described under subsection (a) of this section or in connection with the exercise of any of the powers that may be granted to the county under this section shall be deemed to be needed or taken for a public use or a public benefit.

(d) Land or property owned by the federal government, the State, or a local government, or an agency of the federal government, the State, or a local government, may not be acquired by the county by exercise of the power of eminent domain without the prior consent of the government or agency that owns the land or property.

#### Section 12-804

(a) The county may establish, by law, a body corporate and politic and an instrumentality of the county to be known as the "West Baltimore County Redevelopment Authority".

(b) The Authority shall be created when the county:

  (1) enacts local laws providing and constituting the terms of the charter for the Authority; and

  (2) files the charter with:

    (i) the State Department of Assessments and Taxation;

    (ii) the Department of Legislative Services; and

    (iii) the Secretary of State.

(c) On the advice of the Authority members described under subsection (d)(1) through (5) of this section, the county may:

  (1) amend the Authority's charter through local law if the amendments are filed with the State Department of Assessments and Taxation, the Department of Legislative Services, and the Secretary of State;

  (2) alter the structure, organization, program, powers, or activity of the Authority, unless the alteration would impair the Authority's obligations under a contract or an agreement that the Authority entered into before the alteration; and

  (3) terminate the Authority, unless the termination would impair the Authority's obligations under a contract or an agreement that the Authority entered into before termination.

(d) The Authority shall consist of the following members:

  (1) each member of the Senate of Maryland whose legislative district includes a portion of West Baltimore County;

  (2) one member of the House of Delegates from each legislative district that includes a portion of West Baltimore County, designated by the Speaker of the House;

  (3) each council person whose district includes a portion of West Baltimore County;

  (4) the county administrative officer;

  (5) one member appointed by the County Executive of Baltimore County; and

  (6) eleven members appointed by the County from a slate of individuals prepared by the Authority members described under items (1) through (5) of this subsection.

(e) The slate of individuals described under subsection (d)(6) of this section shall be decided by a majority vote of the Authority members described under subsection (d)(1) through (5) of this section.

#### Section 12-805

(a) Subject to Sec. 12-804(d) of this subtitle, the number, residency requirements, means of appointment and removal, qualifications, and terms of office of the members of the Authority shall be as specified by the county and based on the recommendation of the Authority members described under Sec. 12-804(d)(1) through (5) of this subtitle.

(b) The officers, employees, and agents of the Authority shall be appointed and removed as specified by local law.

(c) The exercise of all powers, authority, rights, and obligations of the Authority shall be as specified by this subtitle and local law.

(d) An act of the Authority may not be challenged on the basis of the absence of qualifications of a member of the Authority if the member:

  (1) has been appointed by the appropriate authority designated by local law; and

  (2) has taken the oath of office.

#### Section 12-806

(a) Except as provided in subsection (c) of this section, the county is authorized, by law, to delegate to the Authority any or all of the powers granted to the county under Sec. 12-803 of this subtitle.

(b) The Authority may make recommendations to the county on issues related to the county's power of eminent domain.

(c) The county may not delegate the power of eminent domain to the Authority.

#### Section 12-807

(a) For the public purposes described under Sec. 12-803 of this subtitle and subject to local law and the provisions of this subtitle, the Authority may, within West Baltimore County:

  (1) acquire, purchase, or otherwise obtain, hold, and use any property, real, personal, or mixed, tangible or intangible, or any interest therein;

  (2) lease as a lessee any property, real, personal, or mixed, tangible or intangible, or any interest therein;

  (3) lease as lessor any property, real, personal, or mixed, tangible or intangible, or any interest therein, at any time acquired by the Authority;

  (4) mortgage or otherwise pledge or encumber any property, real, personal, or mixed, tangible or intangible, or any interest therein, of the Authority; and

  (5) sell, transfer, or convey any property, real, personal, or mixed, tangible or intangible, or any interest therein, acquired by the Authority at any time.

(b) The Authority may accept grants from, make loans to, and enter into contracts with any federal, State, or local agency or any private entity or party.

(c) The Authority may establish, impose, and collect tolls, rates, rentals, fees, and charges relating to the Authority's undertakings and property.

(d) The budgetary and financial procedures of the Authority shall be established by local law.

(e) No provisions of the charter of the county or other local law regarding the duties, powers, or organization of the Authority apply to the Authority unless the county expressly provides by local law that the charter provision or other local law applies to the Authority.

(f) Subject to public general law and local law, the Authority has all other powers necessary or convenient to carry out the purposes of the Authority.

#### Section 12-808

The Authority may not be deemed a municipal corporation as defined in Article XI-E of the Maryland Constitution.

#### Section 12-809

(a) The Authority may make rules and regulations for the operation and use of land, property, and undertakings under the Authority's jurisdiction in the manner provided by local law.

(b) Any violation of the rules and regulations duly adopted by the Authority is a misdemeanor and is punishable by a fine not to exceed $1,000 or imprisonment for not more than 180 days or both.

#### Section 12-810

(a) In order to finance or refinance, in whole or in part, the cost of acquisition, development, or redevelopment, including the comprehensive renovation or rehabilitation, of land or property for residential, commercial, or industrial purposes and related activities in accordance with this subtitle, the Authority may issue bonds.

(b)

  (1) The bonds:

    (i) may not constitute a debt of the county or a pledge of the faith and credit of the county, the State, or any political subdivision of the State;

    (ii) may not be considered obligations of the county for purposes of any debt limitation imposed on the county under any constitutional, statutory, or other charter provision; and

    (iii) shall be approved by the governing body of the county prior to their issuance.

  (2) The bonds, the borrowing which they represent, and the undertaking which is being financed or refinanced are not subject to any referendum requirements of the charter of the county.

(c)

  (1) The bonds may be made payable as to principal, interest, and redemption premium as determined in accordance with local law, including from income, receipts, proceeds, revenues, and funds of the Authority derived from or available or to be available in connection with any undertaking for the accomplishment of the purposes and objectives mentioned in or contemplated by this subtitle, including:

    (i) the proceeds of loans, grants, or contributions from the United States of America, the State of Maryland, or any department or agency thereof, any funds of the county that may be lawfully available, or any other source and compensation paid from appropriated funds by the county for land or property retained by the county; or

    (ii) any contract or agreement or rights thereunder between the United States, the State of Maryland, or any department or agency thereof, or any other public or private entity or individual, and the Authority with respect to any undertakings for the accomplishment of the purposes and objectives mentioned in or contemplated by the provisions of this subtitle.

  (2) Payment of the bonds, as to principal, interest, and redemption premium, may be further secured by a mortgage of all or any part of land, property, or development or redevelopment projects, title to which is in the Authority or any other public or private entity or individual, as determined in accordance with local law.

(d) By resolution, the Authority may determine all matters with respect to the issuance, sale, delivery, and payment of and for the bonds, including the issue date or dates, maturity or maturities, interest rate or rates or manner of determining interest, terms, form or forms, denomination or denominations, manner of execution, place or places of payment, source or sources of payment, redemption, refunding, sale price, manner of sale, security, and the forms of any necessary or appropriate documents, including trust indentures, escrow agreements, and mortgages.

(e)

  (1) Notwithstanding the provisions of subsection (b) of this section and to the extent not inconsistent with any constitutional or charter provision or public general law, any issue of bonds may be guaranteed, in whole or in part, as to payment of principal, interest, or redemption premium, by and upon the full faith and credit of the county.

  (2) The guarantee of the county by and upon the full faith and credit of the county concerning the payment of the principal of, or interest or redemption premium on, any bonds is subject to any applicable referendum requirements of the charter of the county.

(f) The bonds, the transfer of the bonds, the interest payable on the bonds, and any income derived from the bonds, including any profit realized in the sale or exchange of the bonds, shall be exempt at all times from taxation by the State or any county, municipal corporation, or public agency of any kind.

(g) The bonds are exempt from the provisions of Sec.Sec. 19-205 and 19-206 of the Local Government Article.

(h)

  (1) A pledge by the Authority of revenues as security for an issue of bonds shall be valid and binding from the time the pledge is made.

  (2) Revenues pledged by the Authority are subject immediately to the lien of the pledge without any physical delivery or further act.

  (3) The lien of any pledge is valid and binding against any person having any claim of any kind in tort, contract, or otherwise against the Authority, whether or not the person has notice of the lien.

  (4) Notwithstanding any provision of public general or public local law, perfection against third parties of a lien of a pledge by the Authority of the Authority's revenues does not require the filing or recording of a resolution, trust agreement, financing statement, continuation, or other statement or instrument adopted or entered into by the Authority in any public record other than the records of the Authority.

(i)

  (1) Unless the bonds are guaranteed by and upon the full faith and credit of the county and are approved in a referendum by the voters of the county in accordance with subsection (e) of this section, the Authority may not issue bonds under this section until after the Authority has held a public hearing in the county on the proposed bonds.

  (2) The Authority shall notify the Baltimore County Delegations of the House of Delegates and the Senate of Maryland of a proposed issuance of bonds at least 2 weeks before holding the public hearing required under paragraph (1) of this subsection.

#### Section 12-811

As specified by local law and to the extent not inconsistent with any constitutional or charter provision or any public general or public local law, the county may:

(1) assign, pledge, grant, contribute, or provide to the redevelopment authority any taxes, rates, rentals, fees, charges, or other funds held or receivable by the county for any purpose, and assign, pledge, lease, or otherwise convey to the Authority, or encumber any land or property owned or otherwise held by the county, including as additional security for any bonds of the Authority; and

(2)

  (i) advance amounts to the Authority for any purpose, including payment of preliminary expenditures relating to any undertakings of the Authority or for deficiencies in debt services requirements; and

  (ii) provide for the repayment or forgiveness of the advances.

#### Section 12-812

Notwithstanding any other provision of this subtitle and to the extent not inconsistent with any constitutional or charter provision or any public general or public local law, the Authority, as provided by local law, may:

(1) receive and apply to the Authority's corporate purposes and undertakings any grants, contributions, pledges, loans, or other amounts from the State, the county, the federal government, any other governmental unit, or any public or private entity or party; and

(2) to the extent not inconsistent with any contract, instrument, or law relating to a grant, a contribution, a pledge, a loan, or any other amount, pledge the receipts as security for any of the Authority's bonds.

#### Section 12-813

(a) The property owned or held by and the revenues of the Authority are exempt from taxation of every kind by the State or any county, municipal corporation, or public unit.

(b) Notwithstanding the provisions of subsection (a) of this section, on a request of the Authority, the county, by local law, may provide for a negotiated payment in lieu of taxes for property owned or held by the Authority.

#### Section 12-814

(a) The net earnings of the Authority, apart from those necessary to pay debt service or to implement the purposes of this subtitle, may not inure to the benefit of any person other than the county.

(b) On termination of the Authority, all rights and title to all assets of the Authority shall vest in, and all obligations and liabilities of the Authority may be transferred to and assumed by, the county.

#### Section 12-815

Notwithstanding any other provision of this subtitle, the Authority shall comply with all applicable zoning and planning requirements.

### Subtitle 9. Prince George's Gateway Development Authority

#### Section 12-901

In this subtitle, "target area" means the City of Mount Rainier, the Town of Brentwood, the Town of Cottage City, the City of Bladensburg, the Town of Colmar Manor, and the Town of North Brentwood in Prince George's County.

#### Section 12-902

There is a Prince George's Gateway Development Authority in Prince George's County.

#### Section 12-903

(a) The Authority consists of the following members:

  (1) the Secretary, or the Secretary's designee;

  (2) the Secretary of Housing and Community Development, or the Secretary's designee;

  (3) the mayor of the City of Mount Rainier, or the mayor's designee;

  (4) the mayor of the Town of Brentwood, or the mayor's designee;

  (5) the chair of the Cottage City Commission, or the chair's designee;

  (6) the mayor of the City of Bladensburg, or the mayor's designee;

  (7) the mayor of the Town of Colmar Manor, or the mayor's designee;

  (8) the mayor of the Town of North Brentwood, or the mayor's designee;

  (9) the director of the Economic Development Department for the City of Mount Rainier; and

  (10) two members who are residents of communities impacted by the target area selected by the majority vote of the leadership of the target area municipalities.

(b) The Authority shall meet at least four times per year.

(c) Staff of the Prince George's County Redevelopment Authority shall provide support for the operation of the Authority in consultation with the Department of Housing and Community Development.

#### Section 12-904

(a) The Authority may manage appropriated funds from municipalities in the target area, Prince George's County, and the State.

(b) The Authority may receive donated services from accountants, lawyers, or other consultants as necessary to carry out this subtitle.

(c) The Authority may supervise, manage, and terminate staff and consultants as necessary.

#### Section 12-905

A member of the Authority:

(1) may not receive compensation as a member of the Authority; but

(2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

#### Section 12-906

(a) The Authority shall support the development and approval of a comprehensive neighborhood revitalization plan in the target area to benefit:

  (1) the residents;

  (2) housing;

  (3) neighborhoods;

  (4) economic development; and

  (5) transportation, including motor vehicles and pedestrians.

(b) On or before October 31, 2025, the Authority shall report its comprehensive neighborhood revitalization strategy to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, to the Senate Budget and Taxation Committee and the House Appropriations Committee.

### Subtitle 10. Prince George's County -- Business Improvement Districts

#### Section 12-1001

(a) In this subtitle the following words have the meanings indicated.

(b) "Board" means the board of directors of a district corporation.

(c) "Commercial tenant" means a lessee or other lawful occupant, other than the owner, of nonexempt property within a district.

(d) "Condominium" has the meaning stated in Sec. 11-101 of the Real Property Article.

(e) "Cooperative housing corporation" has the meaning stated in Sec. 5-6B-01 of the Corporations and Associations Article.

(f) "District" means a business improvement district established under this subtitle.

(g) "District corporation" means a business improvement district corporation formed in accordance with this subtitle.

(h) "Formation steering committee" means the group of stakeholders responsible for leading the formation of a district and preparing the application in accordance with Sec. 12-1008 of this subtitle.

(i) "Homeowners association" has the meaning stated in Sec. 11B-101 of the Real Property Article.

(j) "Members of the district" means owners of nonexempt property, commercial tenants, and residents in the district.

(k) "Nonexempt property" means all real property that is not exempt from paying real property taxes except:

  (1) condominium units and cooperative housing corporation units that exist on or before the date of establishment of a district;

  (2) homeowners associations; or

  (3) residential property with fewer than four dwelling units.

(l) "Resident" means an individual whose primary residence is within a district, including a renter or an owner of residential property, regardless of whether the individual resides on nonexempt property or exempt property.

#### Section 12-1002

The legislative purposes of this subtitle are to:

(1) provide for the creation of business improvement districts within Prince George's County; and

(2) promote the general welfare of the residents, employers, employees, property owners, commercial tenants, consumers, and the general public within the geographic area of the business improvement districts.

#### Section 12-1003

This subtitle applies only in Prince George's County.

#### Section 12-1004

(a) Subject to a public hearing under Sec. 12-1009 of this subtitle and to accomplish a legislative purpose listed in Sec. 12-1002 of this subtitle, the governing body of the county may adopt a local law to create a business improvement district in accordance with this subtitle.

(b) Subsection (a) of this section is self-executing and fully authorizes the county to establish a district, notwithstanding any other statutory or charter provision.

(c) A local law adopted under subsection (a) of this section shall include:

  (1) the name of the district corporation;

  (2) that the district corporation is formed under this subtitle;

  (3) the names, addresses, and terms of office of the initial members of the board of directors of the district corporation;

  (4) the address of the principal office of the district corporation;

  (5) the purposes for which the district is formed;

  (6) the powers of the district, subject to the limitations on the powers of districts under this subtitle; and

  (7) if applicable, articles of incorporation of the district corporation.

#### Section 12-1005

(a) A board of directors shall govern the district corporation.

(b)

  (1) Subject to paragraphs (2) through (4) of this subsection:

    (i) except as provided in item (ii) of this paragraph, the board of a district corporation consists of at least nine members; or

    (ii) the governing body of the county may determine a different number of members for the board if the district is connected with a business improvement district in another county or state or in the District of Columbia.

  (2)

    (i) The board shall be representative of property owners, business owners, residents, and representatives of the local jurisdictions within the boundaries of the business improvement district.

    (ii) It shall be the responsibility of the initial board of the business improvement district to determine in the district's bylaws the specific details pertaining to board structure, including the specific number of positions, terms, and voting procedures.

  (3) The board shall retain as nonvoting members the member of the Senate of Maryland and members of the House of Delegates who represent the legislative district where a district corporation is established.

  (4)

    (i) Board seats shall be elected in accordance with an election process that is established by the governing body of the county.

    (ii) To the extent practicable, the election process shall reflect the diversity of businesses and other organizations in the district.

(c) From among its members, the board shall elect a chair and other officers.

(d)

  (1) A majority of the voting members of the board is a quorum.

  (2) The board may act on a resolution only by the affirmative vote of a majority of the voting members.

(e) A member of the board:

  (1) may not receive compensation as a member of the board; but

  (2) shall be reimbursed for expenses incurred in performing the member's duties.

(f) The board shall exercise its powers by resolution.

(g) The board shall file an annual report with the governing body of the county that includes:

  (1) a financial statement for the preceding year;

  (2) a proposed operating budget for the current fiscal year;

  (3) any proposed revisions to the business plan; and

  (4) a narrative statement or chart showing the results of operations in comparison to stated goals and objectives.

#### Section 12-1006

The net earnings of a district corporation may benefit only the district corporation.

#### Section 12-1007

(a)

  (1) Except as limited by its articles of incorporation, a district corporation has all the powers set forth in this subtitle.

  (2) A district corporation may:

    (i) receive money from its incorporating county, the State, other governmental units, or nonprofit organizations;

    (ii) charge fees for its services;

    (iii) have employees and consultants as the district corporation considers necessary; and

    (iv) use the services of other governmental units.

(b) A district corporation shall operate and exercise its powers solely to accomplish one or more of the legislative purposes of this subtitle.

#### Section 12-1008

(a) The formation steering committee seeking to establish a district corporation shall submit appropriate documentation as described in subsection (b) of this section to the governing body of the county.

(b) The appropriate documentation required under subsection (a) of this section shall contain:

  (1) a statement setting forth:

    (i) the proposed name and address of the district corporation; and

    (ii) the street address of each owner of nonexempt property and to the extent reasonably ascertainable, each commercial tenant within the proposed district;

  (2) a statement expressing the intent to establish a district corporation that is signed by owners of at least 51% of the total number of parcels of nonexempt property and, subject to subsection (c) of this section, a designated board member of a condominium or cooperative housing corporation within the proposed district;

  (3) a proposed 5-year business plan that contains:

    (i) the goals and objectives of the proposed district;

    (ii) the annual proposed business improvement district tax for the proposed district's common operations and the formula used to determine each member's district tax; and

    (iii) the maximum amount and the nature of start-up costs incurred before the district's establishment;

  (4) a tax assessor's map of the geographic area of the proposed district;

  (5) a list of the proposed initial board of the proposed district corporation;

  (6) the proposed articles of incorporation and the bylaws of the district corporation; and

  (7) for all nonexempt property within the proposed district:

    (i) the name and mailing address of each owner; and

    (ii) the most recent assessed value.

(c)

  (1) Notwithstanding any other provision of this title, subject to paragraph (2) of this subsection, a condominium or cooperative housing corporation that is located in the proposed district may petition to join the district corporation.

  (2) A condominium or cooperative housing corporation described under paragraph (1) of this subsection may petition to join the district only if:

    (i) the condominium or cooperative housing corporation is governed by a board;

    (ii) the board votes to join the district corporation; and

    (iii) the board has a representative member of the board sign the appropriate documents required under subsection (b)(2) of this section.

  (3) For the purposes of the votes cast under subsection (b)(2) of this section:

    (i) a condominium or cooperative housing corporation shall be considered a single parcel; and

    (ii) the decision reached by the board shall constitute the vote of the condominium or cooperative housing corporation.

(d) Within 45 days after receiving all appropriate documentation under subsection (b) of this section, the governing body of the county shall schedule a public hearing on the application.

#### Section 12-1009

(a) At least 21 calendar days before the public hearing, the governing body of the county shall publish notice of the public hearing in a newspaper of general circulation within the geographic area of the proposed district.

(b) The formation steering committee seeking to establish a district shall send notice of the public hearing and a summary of the application to each owner of nonexempt property and to the extent reasonably ascertainable, each commercial tenant of nonexempt property within the proposed district by the earlier of:

  (1) at least 90 days before the public hearing; or

  (2) when owners of at least 20% of the total number of parcels of nonexempt property express the intent to establish a district.

(c) Before the public hearing, the application shall be made available for review during normal business hours in at least one location in the proposed district.

(d) Within 10 calendar days after the public hearing, if the governing body of the county determines, in the sole discretion of the governing body, that the needs of the district meet a purpose of this subtitle, the governing body may authorize the district in accordance with Sec. 12-1004 of this subtitle.

#### Section 12-1010

(a) Within 10 calendar days after the authorization of the district by the governing body of the county, the district corporation shall provide the governing body of the county with a preliminary business improvement district tax roll.

(b)

  (1) The governing body of the county shall impose a business improvement district tax to provide funds for the operation of the district.

  (2) The governing body of the county shall impose on members of the district who are owners of nonexempt property the district tax at a rate specified by the board and approved by the governing body.

  (3) The tax imposed under this subsection may not count against a county tax cap.

(c) The district tax shall be collected in the same manner as real property taxes are collected and distributed each quarter to the district.

(d) A district shall reimburse the governing body of the county for the costs incurred in collecting the district tax.

#### Section 12-1011

(a) An established district may expand the geographic area of the district if:

  (1) a petition for inclusion is submitted from owners of at least 51% of the total number of parcels of nonexempt property and, subject to subsection (b) of this section, a designated board member of a condominium or cooperative housing corporation proposed for inclusion in the district;

  (2) the petition under item (1) of this subsection is accepted by a majority vote of the board of the district corporation; and

  (3) the appropriate documents, as applicable, are submitted under Sec. 12-1008 of this subtitle and a hearing is held under Sec. 12-1009 of this subtitle.

(b)

  (1) Notwithstanding any other provision of this title and subject to paragraph (2) of this subsection, a condominium or cooperative housing corporation that is located in the proposed expanded geographic area of the district may petition to join the expansion.

  (2) A condominium or cooperative housing corporation described under paragraph (1) of this subsection may petition to join the expansion only if:

    (i) the condominium or cooperative housing corporation is governed by a board;

    (ii) the board votes to join the district corporation; and

    (iii) the board has a representative member of the board sign the appropriate documents required under Sec. 12-1008 of this subtitle.

  (3) For the purposes of the votes cast under subsection (a)(1) of this section:

    (i) a condominium or cooperative housing corporation shall be considered a single parcel; and

    (ii) the decision reached by the board shall constitute the vote of the condominium or cooperative housing corporation.

#### Section 12-1012

(a) The governing body of the county in which a district is established under this subtitle shall:

  (1) review the effectiveness and desirability of continuing the district every 3 years from the time the district is authorized by local law under Sec. 12-1004 of this subtitle; and

  (2) develop policies and procedures for evaluating the desirability of continuing the district if requested by members of the district.

(b) If the continuing existence of the district is not approved by the governing body:

  (1) the district shall cease to exist as directed by the governing body; and

  (2) the district corporation shall continue its existence only as long as necessary to terminate operation in a reasonable manner.

### Subtitle 11. Allegany Regional Recreational Economic Development Authority

#### Section 12-1101

In this subtitle, "Authority" means the Allegany Regional Recreational Economic Development Authority.

#### Section 12-1102

There is an Allegany Regional Recreational Economic Development Authority in Allegany County.

#### Section 12-1103

The Authority consists of the following members:

(1) the President of the Allegany County Commissioners, or the President's designee;

(2) the President of Frostburg State University, or the President's designee;

(3) the President of Allegany College, or the President's designee;

(4) the mayor of Cumberland, or the mayor's designee;

(5) the mayor of Frostburg, or the mayor's designee;

(6) the President of the Allegany County Board of Education, or the President's designee; and

(7) one member who is a resident of Allegany County designated by the members of the General Assembly that represent Allegany County.

#### Section 12-1104

(a) The Authority may manage appropriated funds from Allegany County, the municipal corporations of Cumberland and Frostburg, and the State.

(b) The Authority may receive donated services from professionals as necessary to carry out this subtitle.

(c) The Authority may supervise, manage, and terminate staff and consultants as necessary.

#### Section 12-1105

A member of the Authority:

(1) may not receive compensation as a member of the Authority; but

(2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

#### Section 12-1106

(a) The Authority shall support the development and construction of regional recreation facilities to benefit residents and the economic development of Allegany County, including:

  (1) athletic fields;

  (2) indoor athletic facilities; and

  (3) other facilities designed to create recreational tourism.

(b) On or before October 31, 2025, and each October 31 thereafter, the Authority shall report its activities to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the House Ways and Means Committee.

### Subtitle 12

#### Section 12-1201

(a) In this subtitle the following words have the meanings indicated.

(b) "Authority" means the Suitland Development Authority.

(c) "Board" means the Board of Directors of the Authority.

(d) "Buffer zone" means the area within 250 yards of the target area.

(e) "Target area" means the Suitland Road and Silver Hill Road corridor in Prince George's County.

#### Section 12-1202

This subtitle shall be liberally construed to accomplish its purposes. 

#### Section 12-1203

(a) There is a Suitland Development Authority in Prince George's County.

(b) The Authority is a body politic and corporate and is an instrumentality of the State.

(c) The exercise by the Authority of a power under this subtitle is the performance of an essential governmental function.

(d) The Governor shall include each year in the annual budget bill an appropriation of $500,000 to the Authority in Prince George's County.

(e) Beginning fiscal year 2036, the Authority shall be self-sustaining.

#### Section 12-1204

(a) The General Assembly finds that:

  (1) there exists within various neighborhoods in Prince George's County, particularly the Suitland Road and Silver Hill Road corridor, a need for residential and commercial development or redevelopment in furtherance of the public's interest;

  (2) the Suitland Road and Silver Hill Road corridor has experienced low housing and economic development in the community for decades;

  (3) areas in the Suitland Road and Silver Hill Road corridor include both areas that are considered slum or blighted and areas that are deteriorated or subject to further deteriorating condition, and those areas are in need of development or redevelopment for the public benefit;

  (4) the revitalization of areas within the Suitland Road and Silver Hill Road corridor needing commercial development or redevelopment is an essential governmental function and is a public use that will confer a public benefit on citizens of Prince George's County by:

    (i) relieving conditions of unemployment;

    (ii) encouraging the increase of commerce and a balanced economy;

    (iii) assisting in the retention of businesses and residents;

    (iv) attracting new industries and commerce;

    (v) promoting economic development and growth; and

    (vi) generally promoting the health, welfare, and public safety of residents in Prince George's County and increasing property tax revenues for the State and Prince George's County;

  (5) the establishment of this public Authority to provide financial resources for the development and establishment of residences and businesses through community organizations in the target area will significantly improve Prince George's County neighborhoods and increase property tax revenues for the State and Prince George's County; and

  (6) the Authority is the economic development authority for the State to benefit the neighborhoods of Prince George's County within the target area.

(b) The legislative purposes of the Authority are to:

  (1) revive the various communities along the Suitland Road and Silver Hill Road corridor in Prince George's County;

  (2) promote economic development;

  (3) encourage the increase of business activity, commerce, and a balanced economy in Prince George's County;

  (4) help to retain and attract business activity and commerce in Prince George's County; and

  (5) promote the health, public safety, right of gainful employment, and welfare of residents of Prince George's County.

(c) The General Assembly intends that:

  (1) the Authority operate and exercise its corporate powers along the Suitland Road and Silver Hill Road corridor in Prince George's County;

  (2) without limiting its authority to otherwise exercise its powers, the Authority exercises its powers to assist private real estate entities and nonprofit community development corporations to develop and rehabilitate housing and commercial units in Prince George's County and support local economic development agencies to contribute to the expansion, modernization, and retention of existing enterprises in Prince George's County as well as the attraction of new businesses to Prince George's County; and

  (3) the Authority should not own and operate a project unless:

    (i) the Board determines by resolution that the private sector has not demonstrated serious and significant interest and development capacity to own and operate the project; or

    (ii) a representative of a governmental unit requests in writing that the Authority own and operate the project.

#### Section 12-1205

(a)

  (1) Except as otherwise provided in this section, in exercising its powers, the Authority:

    (i) may carry out the purposes of the Authority without the consent of any State unit; and

    (ii) is not subject to:

      (1) Subtitles 1 through 3 of this title; or

      (2) the following provisions of the State Finance and Procurement Article:

      (A) Title 2, Subtitles 2 (Gifts and Grants) and 5 (Facilities for the Handicapped);

      (B) Title 3 (Budget and Management);

      (C) Title 4 (Department of General Services);

      (D) Title 5A (Division of Historical and Cultural Programs);

      (E) Title 6, Subtitle 1 (Studies and Estimates);

      (F) Title 7, Subtitles 1 (State Operating Budget), 2 (Disbursements and Expenditures), and 3 (Unspent Balances);

      (G) Title 10 (Board of Public Works - Miscellaneous Provisions); or

      (H) Division II (General Procurement Law).

  (2) The Authority is subject to:

    (i) the Public Information Act; and

    (ii) the Open Meetings Act.

(b) The Authority and its officers and employees are subject to the Public Ethics Law.

(c) The Authority and its officers and employees are subject to Title 12, Subtitle 4 of the State Finance and Procurement Article.

(d) The Authority is subject to Title 14, Subtitle 3 of the State Finance and Procurement Article.

#### Section 12-1206

(a) A Board of Directors shall manage the Authority and exercise its powers.

(b) The Board consists of the following members:

  (1) one member of the Senate of Maryland who represents the target area to serve in an advisory capacity, appointed by the President of the Senate;

  (2) one member of the House of Delegates who represents the target area to serve in an advisory capacity, appointed by the Speaker of the House;

  (3) the Secretary of Housing and Community Development, or the Secretary's designee;

  (4) the Secretary of Transportation, or the Secretary's designee;

  (5) the Secretary of Commerce, or the Secretary's designee;

  (6) the Executive Director of the Maryland Economic Development Corporation, or the Executive Director's designee;

  (7) the Deputy Chief Administrative Officer of Economic Development in Prince George's County, or the Deputy Chief's designee;

  (8) one member of the Suitland Legacy Mixed-Use Town Center Design Review Committee who is the federal representative to the Design Review Committee, appointed by the Maryland-National Capital Park and Planning Commission Planning Director;

  (9) the Director of the Prince George's County Economic Development Corporation, or the Director's designee;

  (10) the Executive Director of the Redevelopment Authority of Prince George's County, or the Executive Director's designee;

  (11) the Executive Director of the Revenue Authority of Prince George's County, or the Executive Director's designee;

  (12) the Director of the Department of Permitting, Inspections, and Enforcement of Prince George's County, or the Director's designee;

  (13) the Maryland-National Capital Park and Planning Commission's Prince George's County Planning Director, or the Director's designee;

  (14) one Suitland community member, appointed by the Speaker of the House;

  (15) one Suitland community member, appointed by the President of the Senate;

  (16) one Suitland community member, appointed by the County Executive of Prince George's County; and

  (17) one commercial property owner within the target area, appointed by the County Executive.

(c)

  (1) The County Executive shall select the chair of the Board.

  (2) The Board shall elect the cochair of the Board from the members listed under subsection (b)(3) through (6), (14), and (15) of this section.

#### Section 12-1207

(a) The Authority may manage appropriated funds from Prince George's County and the State.

(b) The Authority may receive donated services from accountants, lawyers, or other consultants as necessary to carry out this subtitle.

(c) The Authority may supervise, manage, and terminate staff and consultants as necessary.

#### Section 12-1208

A member of the Authority:

(1) may not receive compensation as a member of the Authority; but

(2) is entitled to reimbursement for expenses under the Standard State Travel Regulations, as provided in the State budget.

#### Section 12-1209

(a) The Authority shall:

  (1) support the development and approval of a comprehensive neighborhood revitalization plan in the target area and the buffer zone to benefit:

    (i) the residents;

    (ii) housing;

    (iii) neighborhoods;

    (iv) economic development; and

    (v) transportation, including motor vehicles and pedestrians; and

  (2) work in coordination with the residents of the target area and the buffer zone to develop a comprehensive neighborhood revitalization plan.

(b) The Authority may, by a majority vote of all members of the Authority, modify the boundaries of the target area and the buffer zone.

(c) On or before December 15, 2027, the Authority shall report its comprehensive neighborhood revitalization strategy, including any procurement activities undertaken by the Authority, to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, to the Senate Budget and Taxation Committee, the House Economic Matters Committee, and the House Appropriations Committee.

#### Section 12-1210

The Authority may:

(1) adopt bylaws for the conduct of the business of the Authority;

(2) adopt a seal;

(3) sue or be sued;

(4) maintain an office at a place the Authority designates in Prince George's County;

(5) make or accept and manage loans, grants, or assistance of any kind from the federal or State government, a local government, a college or university, a charitable institution, a nonprofit organization, a for-profit organization, or a private source;

(6) make grants to individuals;

(7) acquire properties in Prince George's County, directly or indirectly, from a person or political subdivision, to improve, manage, market, maintain, or lease, from a person or political subdivision for residential, commercial, or industrial development or redevelopment, including comprehensive renovation or rehabilitation of the land or property on terms the Authority considers reasonable to operate a project in Prince George's County, by:

  (i) purchase;

  (ii) gift;

  (iii) interest;

  (iv) condemnation;

  (v) eminent domain, except for:

    (1) owner-occupied residential properties; and

    (2) property owned or controlled by the Revenue Authority of Prince George's County or the Redevelopment Authority of Prince George's County;

  (vi) tax sale;

  (vii) foreclosure;

  (viii) receivership;

  (ix) in rem foreclosure proceedings;

  (x) easement, or any other interest in land;

  (xi) lease; and

  (xii) rent;

(8) acquire, purchase, hold, lease as lessee, and use:

  (i) a franchise, patent, or license;

  (ii) any real, personal, mixed, tangible, or intangible property; or

  (iii) an interest in the property listed in this item;

(9) finance all or part of the acquisition or improvement of a project;

(10) sell, lease as lessor, transfer, license, assign, or dispose of property or a property interest that the Authority acquires;

(11) fix and collect rates, rentals, fees, royalties, and charges for services and resources the Authority provides or makes available;

(12) enter into contracts with any federal, State, or local government agency, a governmental unit, a college or university, charitable institutions, or a private entity or party;

(13) exercise power usually possessed by a private corporation in performing similar functions unless to do so would conflict with State law;

(14) with the owner's permission, enter lands or premises to make a survey, a sounding, a boring, or an examination to accomplish the purpose authorized by this subtitle;

(15) create, own, control, or be a member of a corporation, limited liability company, partnership, or any other entity;

(16) create a special district benefit for the commercial businesses in the target area;

(17) open a bank account with a national or local federally insured financial institution;

(18) set salaries in accordance with the jurisdiction market rate and outside the State Personnel and Pension System;

(19) create a forum for stakeholders to come together on creating a 20-year comprehensive plan around economic, housing, transportation, neighborhood, and green space development within the target area;

(20) serve as a clearinghouse and resource center for promoting coordination and communication on development opportunities for the Suitland Road and Silver Hill Road corridor;

(21) ensure money is being spent effectively and efficiently on development and that development is happening in the appropriate way for the Suitland Road and Silver Hill Road corridor;

(22) provide advisory services to State and Prince George's County agencies on planning and development for the target area;

(23) initiate, fund, and monitor for efficiency and effectiveness economic, housing, transportation, neighborhood, and green space development within the target area;

(24) make rules and regulations for the operation and use of land, property, and undertakings under the Authority's jurisdiction; and

(25) do all things necessary or convenient to carry out the powers expressly granted by this subtitle.

#### Section 12-1211

(a) The Authority shall establish a system of financial accounting, controls, audits, and reports.

(b) The fiscal year of the Authority begins on July 1 and ends on the following June 30.

#### Section 12-1212

(a) The Authority may create and administer the accounts that the Authority requires.

(b) The Authority shall deposit its money into a Prince George's County or national bank or a federally insured savings and loan association that has a total paid-in capital of at least $1,000,000.

(c) The Authority may designate the trust department of a Prince George's County or national bank or savings and loan association as a depository to receive securities that the Authority owns or acquires.

#### Section 12-1213

(a) Except as provided in subsection (b) of this section, 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.

(b) Any property that is sold or leased by the Authority to a private entity is subject to Prince George's County and local real property taxes from the time of sale or lease.

(c) The Authority is exempt from State and local transfer and recordation tax.

(d) The Authority is exempt from the sales and use tax on construction materials for a project in the target area of the buffer zone.

#### Section 12-1214

(a) In this section, "Fund" means the Suitland Development Authority Fund.

(b) There is a Suitland Development Authority Fund.

(c) The purpose of the Fund is to provide funds for the Authority to use for consulting fees, salaries, and administrative expenses.

(d) The Authority shall administer the Fund.

(e)

  (1) The Fund is a special, nonlapsing fund that is not subject to Sec. 7-302 of the State Finance and Procurement Article.

  (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

(f) The Fund consists of:

  (1) money appropriated in the State budget to the Fund;

  (2) interest earnings; and

  (3) any other money from any other source accepted for the benefit of the Fund.

(g) The Fund may be used only for administrative purposes and to carry out the functions of this subtitle.

(h) The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested.

(i) Expenditures from the Fund may be made only in accordance with the State budget.

---

Md. Code Ann., Econ. Dev. (as displayed at mgaleg.maryland.gov, October 16, 2026)