In this subtitle the following words have the meanings indicated. “Board” means the board of directors of a district corporation. “Commercial tenant” means a lessee or other lawful occupant, other than the owner, of nonexempt property within a district. “Condominium” has the meaning stated in § 11–101 of the Real Property Article. “Cooperative housing corporation” has the meaning stated in § 5–6B–01 of the Corporations and Associations Article. “District” means a business improvement district established under this subtitle. “District corporation” means a business improvement district corporation formed in accordance with this subtitle. “Formation steering committee” means the group of stakeholders responsible for leading the formation of a district and preparing the application in accordance with § 12–1008 of this subtitle. “Homeowners association” has the meaning stated in § 11B–101 of the Real Property Article. “Members of the district” means owners of nonexempt property, commercial tenants, and residents in the district. “Nonexempt property” means all real property that is not exempt from paying real property taxes except: condominium units and cooperative housing corporation units that exist on or before the date of establishment of a district; homeowners associations; or residential property with fewer than four dwelling units. “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.

The legislative purposes of this subtitle are to: provide for the creation of business improvement districts within Prince George’s County; and 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.

This subtitle applies only in Prince George’s County.

Subject to a public hearing under § 12–1009 of this subtitle and to accomplish a legislative purpose listed in § 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. Subsection (a) of this section is self–executing and fully authorizes the county to establish a district, notwithstanding any other statutory or charter provision. A local law adopted under subsection (a) of this section shall include: the name of the district corporation; that the district corporation is formed under this subtitle; the names, addresses, and terms of office of the initial members of the board of directors of the district corporation; the address of the principal office of the district corporation; the purposes for which the district is formed; the powers of the district, subject to the limitations on the powers of districts under this subtitle; and if applicable, articles of incorporation of the district corporation.

A board of directors shall govern the district corporation. Subject to paragraphs (2) through (4) of this subsection: except as provided in item (ii) of this paragraph, the board of a district corporation consists of at least nine members; or 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. 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. 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. 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. Board seats shall be elected in accordance with an election process that is established by the governing body of the county. To the extent practicable, the election process shall reflect the diversity of businesses and other organizations in the district. From among its members, the board shall elect a chair and other officers. A majority of the voting members of the board is a quorum. The board may act on a resolution only by the affirmative vote of a majority of the voting members. A member of the board: may not receive compensation as a member of the board; but shall be reimbursed for expenses incurred in performing the member’s duties. The board shall exercise its powers by resolution. The board shall file an annual report with the governing body of the county that includes: a financial statement for the preceding year; a proposed operating budget for the current fiscal year; any proposed revisions to the business plan; and a narrative statement or chart showing the results of operations in comparison to stated goals and objectives.

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

Except as limited by its articles of incorporation, a district corporation has all the powers set forth in this subtitle. A district corporation may: receive money from its incorporating county, the State, other governmental units, or nonprofit organizations; charge fees for its services; have employees and consultants as the district corporation considers necessary; and use the services of other governmental units. A district corporation shall operate and exercise its powers solely to accomplish one or more of the legislative purposes of this subtitle.

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. The appropriate documentation required under subsection (a) of this section shall contain: a statement setting forth: the proposed name and address of the district corporation; and the street address of each owner of nonexempt property and to the extent reasonably ascertainable, each commercial tenant within the proposed district; 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; a proposed 5–year business plan that contains: the goals and objectives of the proposed district; 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 the maximum amount and the nature of start–up costs incurred before the district’s establishment; a tax assessor’s map of the geographic area of the proposed district; a list of the proposed initial board of the proposed district corporation; the proposed articles of incorporation and the bylaws of the district corporation; and for all nonexempt property within the proposed district: the name and mailing address of each owner; and the most recent assessed value. 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. A condominium or cooperative housing corporation described under paragraph (1) of this subsection may petition to join the district only if: the condominium or cooperative housing corporation is governed by a board; the board votes to join the district corporation; and the board has a representative member of the board sign the appropriate documents required under subsection (b)(2) of this section. For the purposes of the votes cast under subsection (b)(2) of this section: a condominium or cooperative housing corporation shall be considered a single parcel; and the decision reached by the board shall constitute the vote of the condominium or cooperative housing corporation. 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.

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. 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: 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. 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. 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 § 12–1004 of this subtitle.

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. The governing body of the county shall impose a business improvement district tax to provide funds for the operation of the district. 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. The tax imposed under this subsection may not count against a county tax cap. The district tax shall be collected in the same manner as real property taxes are collected and distributed each quarter to the district. A district shall reimburse the governing body of the county for the costs incurred in collecting the district tax.

An established district may expand the geographic area of the district if: 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; the petition under item (1) of this subsection is accepted by a majority vote of the board of the district corporation; and the appropriate documents, as applicable, are submitted under § 12–1008 of this subtitle and a hearing is held under § 12–1009 of this subtitle. 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. A condominium or cooperative housing corporation described under paragraph (1) of this subsection may petition to join the expansion only if: the condominium or cooperative housing corporation is governed by a board; the board votes to join the district corporation; and the board has a representative member of the board sign the appropriate documents required under § 12–1008 of this subtitle. For the purposes of the votes cast under subsection (a)(1) of this section: a condominium or cooperative housing corporation shall be considered a single parcel; and the decision reached by the board shall constitute the vote of the condominium or cooperative housing corporation.

The governing body of the county in which a district is established under this subtitle shall: review the effectiveness and desirability of continuing the district every 3 years from the time the district is authorized by local law under § 12–1004 of this subtitle; and develop policies and procedures for evaluating the desirability of continuing the district if requested by members of the district. If the continuing existence of the district is not approved by the governing body: the district shall cease to exist as directed by the governing body; and the district corporation shall continue its existence only as long as necessary to terminate operation in a reasonable manner.