In this subtitle the following words have the meanings indicated.
“Bond” means any bond, note, or other evidence of indebtedness or obligation that a district is authorized to issue under this subtitle.
“Cost”, as applied to any project, includes the cost of and all expenses incident to the construction, acquisition, improvement, or placement in operation of a project, including the cost and expenses of:
The purchase price of a project;
The cost of acquiring all the capital stock of a corporation that owned a project;
Amounts paid to discharge obligations of the owner of a project, if paid to vest title to a project in the district;
Any interest in real or personal property acquired in connection with it;
Financial, technical, professional, engineering, and legal services;
Plans, specifications, surveys, estimates of costs and revenues, feasibility or practicability reports, machinery, equipment, administrative expenses, and other expenses that are necessary and incident to the financing authorized for the construction, acquisition, improvement, or placement in operation of a project; and
Financing the project, including finance charges and interest before, during, and for 1 year after completion of construction.
“Cost”, as to any obligation or expense that is incurred before the bonds are issued, also includes the cost and expense of engineering services, estimates of costs and revenues, and any other technical or professional services that may be used in the construction, acquisition, or improvement of a project.
“District” means an entity that is created under this subtitle.
“District” includes a board, body, or commission that assumes the principal functions of a district that is created under this subtitle and later abolished.
“Governing body” means the body or board that is authorized to enact ordinances or resolutions for a county.
“Improvement” means any construction, repair, replacement, extension, or betterment of a project.
“Independent system” means a water system, sewerage system, or solid waste disposal system that:
Is not operated by a sanitary commission or a municipality; and
Serves territory not served by a project.
“Member county” means a county that:
Has formed or joined a district under this subtitle; and
Has not withdrawn from the district.
“Municipal system” means a water system, sewerage system, or solid waste disposal system that:
Is operated by a municipality; and
Serves territory not served by a project.
“Project” means a water system, sewerage system, solid waste disposal system, or solid waste acceptance facility or any part of these that a district owns, constructs, or operates.
“Sanitary commission” means a sanitary commission created under this subtitle.
“Service area” means a defined geographical area that is established as a service area by a sanitary commission under this subtitle.
“Sewage” means any water-carried waste created in and carried or to be carried away from a residence, hotel, school, hospital, industrial establishment, commercial establishment, or any other building, including any household and industrial wastes that are present.
“Sewerage system” means a plant, system, facility, or property that can:
Carry sewage away;
Collect sewage;
Neutralize sewage;
Stabilize sewage; or
Treat sewage.
“Sewerage system” includes the following parts of a sewerage system:
A disposal field.
A drainage ditch.
A force main.
An intercepting ditch.
An intercepting sewer.
A lateral sewer.
An outfall sewer.
A pumping station.
A sewage conduit.
Sewage equipment.
A sewage lagoon.
A sewage pipe.
A sewage pipe line.
A sewage treatment plant.
A trunk sewer.
“Sewerage system” includes any property or property right used in the operation of the sewerage system.
“Solid waste acceptance facility” means a facility whose primary purpose is:
Disposing of solid waste;
Processing solid waste; or
Treating solid waste.
“Solid waste disposal system” means a system that systematically or on a schedule collects solid waste and transports it to a solid waste acceptance facility for treatment or disposal.
“Solid waste disposal system” includes a solid waste acceptance facility that is used with the system.
“Water system” means a plant, system, facility, or property that can supply water or distribute water.
“Water system” includes the following parts of a water system:
A dam.
A filtration plant.
A hydrant.
A lateral.
A reservoir.
A standpipe.
A valve.
A water distribution system.
Water equipment.
A water intake.
A water main.
A water meter.
A water pumping station.
A water purification plant.
A water supply system.
A well.
“Water system” includes any property or property right used in the operation of the water system.
This subtitle does not apply to:
Anne Arundel County;
Carroll County;
Harford County;
Montgomery County;
Prince George’s County; or
St. Mary’s County.
Each sanitary commission may adopt rules and regulations to carry out the provisions of this subtitle.
Except as otherwise provided in this section, this subtitle shall be interpreted liberally to allow a district to carry out the purposes of this subtitle.
This subtitle does not limit the powers of the Department of Natural Resources or the Department of the Environment.
This subtitle does not impair the validity of actions taken by a district before June 1, 1961.
This subtitle ratifies the actions taken by any district before June 1, 1961.
This subtitle ratifies the issuance and sale of all bonds issued or sold by a district before June 1, 1961.
At any reasonable time, a representative of a sanitary commission may enter any public or private building or place under the jurisdiction of the district to inspect any pertinent equipment or part of the building or place.
On entering any building or place under this section, the representative of the sanitary commission shall present to the owner, operator, or agent in charge appropriate credentials from the sanitary commission.
Each district is a public corporate body that exercises public and essential government functions, for the public health and welfare.
As to any project, each district may do any of the following:
Acquire the project.
Construct the project.
Hold the project.
Improve the project.
Lease the project as a lessee or lessor.
Maintain the project.
Operate the project.
Own the project.
Reconstruct the project.
Repair the project.
Each district, its income, its property, and its incorporation are exempt from any State or local taxation or assessments.
The bonds issued under this subtitle, their transfer, the interest payable on them, and any income derived from them, including any profit realized in their sale or exchange, shall be exempt at all times from every kind and nature of taxation by this State or by any of its political subdivisions, municipal corporations, or public agencies of any kind.
When making required filings of corporate documents, each district may be required to pay the usual:
Filing fees;
Recording fees; and
Service charges.
By ordinance or resolution, the governing body of a county or the governing bodies of 2 or more counties may create a district under this subtitle.
The ordinance or resolution that creates a district shall include articles of incorporation that comply with this section.
The articles of incorporation shall include:
The name of the district, using the word “district”;
A statement that the district is formed under this subtitle;
The name of each member county;
The name, address, and term of office of each of the first sanitary commissioners of the district;
The purposes for which the district is created; and
If the district is to exercise jurisdiction over a geographical area smaller than the maximum jurisdiction allowable to the district under this subtitle, a description of the geographical jurisdiction of the district.
The appropriate officials of each member county shall sign the articles of incorporation and file the articles with the State Department of Assessments and Taxation.
In this section, “amendment” means an amendment to the articles of incorporation of a district.
In accordance with this section, a district may adopt amendments that:
Can be included lawfully in original articles of incorporation; and
Change the district’s:
Name;
Powers; or
Purposes.
To adopt amendments, the sanitary commission shall adopt a resolution that:
Directs that the proposed amendment be submitted to each member county; and
Discloses the text of the proposed amendment by printing:
The text of the entire articles of organization as the articles of organization would read after adoption of the proposed amendment;
The text of a provision in the articles of incorporation as that provision would read after adoption of the proposed amendment; or
The material whose addition to or removal from the articles of incorporation is proposed.
By ordinance or resolution, the governing body of each member county shall adopt or reject the proposed amendment.
If the governing body of each member county adopts the proposed articles of amendment, two authorized officers of the district shall:
Verify the facts set forth in the articles of amendment;
Put the district’s seal on the articles of amendment; and
Sign the articles of amendment.
The articles of amendment shall include:
The name and address of the principal office of the district;
A statement that the amendment was proposed by the sanitary commissioners;
A statement that each member county adopted the amendment; and
The text of the amendment.
The district shall file the articles of amendment with the State Department of Assessments and Taxation.
A county that is not a member county may join a district in accordance with this section.
To join a district, the governing body of the incoming county shall adopt an ordinance or resolution that asks the district to admit the incoming county.
If the sanitary commission of the district adopts a resolution that approves the admission of the incoming county and if the governing body of each member county adopts an ordinance or resolution that approves the admission of the incoming county, the sanitary commission and the governing body of the incoming county shall adopt and sign articles of joinder.
Immediately on the admission of the county, the governing body of the new member county shall appoint a sanitary commissioner.
The articles of joinder shall include:
The name, address, and term of office of the first sanitary commissioner from the incoming county; and
All information about the incoming county that would be required in original articles of incorporation.
The district and incoming county shall file the articles of joinder with the State Department of Assessments and Taxation.
If the district has not incurred any obligation, a member county may withdraw from a multiple county district in accordance with this section.
The governing body of the county seeking to withdraw shall adopt an ordinance or resolution that asks the district to allow that county to withdraw from the district.
If the sanitary commission adopts a resolution that approves the withdrawal of the petitioning county and if the governing body of each member county adopts an ordinance or resolution that approves the withdrawal of the petitioning county, the sanitary district and the governing body of the withdrawing county shall adopt and sign articles of withdrawal.
The district and the withdrawing county shall file the articles of withdrawal with the State Department of Assessments and Taxation.
In this section, “corporate document” means:
Articles of incorporation;
Articles of amendment;
Articles of joinder; or
Articles of withdrawal.
When a corporate document is filed with it, the State Department of Assessments and Taxation shall:
Endorse on the corporate document the time and date the corporate document was received; and
Examine the corporate document.
If, after examination, the State Department of Assessments and Taxation determines that the corporate document is proper, the State Department of Assessments and Taxation shall:
Issue a certificate of approval;
Include with the certificate of approval a copy of the corporate document; and
Record a copy of:
The corporate document; and
The certificate of approval.
When the State Department of Assessments and Taxation issues a certificate of approval under this section:
The corporate document is effective;
The district exists as provided in the corporate document; and
The corporate document is conclusively presumed to have been adopted lawfully.
Promptly after it is created and its officers are elected, each district shall notify the State Department of Assessments and Taxation of:
The principal office of the district; and
The name and address of each officer of the district.
Within 10 days after the district makes any change in the location of the district’s principal office, the district shall notify the State Department of Assessments and Taxation of the change.
Except as provided in § 9-629 of this subtitle, the sanitary commission is the body that governs a district.
The sanitary commission of each single county district consists of the following numbers of sanitary commissioners, each appointed by the governing body of the member county:
Allegany County – 7;
Dorchester County – 6;
Somerset County, except as provided in paragraph (2) of this subsection – 5;
Worcester County – 5; and
Other counties – 3.
In a single county district in Somerset County, if there are more than 5 service areas in the single county district, the sanitary commission consists of:
One sanitary commissioner from each service area; and
If there is an even number of service areas, one additional sanitary commissioner.
In a single county district in Somerset County, the sanitary commission consists of:
A sanitary commissioner from each service area who is a resident of that service area; and
If there is an even number of service areas, one additional sanitary commissioner who is a resident of the county at large.
In other counties, each sanitary commissioner shall be a resident of the county.
The term of a sanitary commissioner in a single county district is as follows:
In Dorchester County, 6 years expiring on July 1 of the appropriate year.
In Allegany County, 6 years expiring on June 1 of the appropriate year.
In Somerset County, 6 years expiring, as required by the terms of the sanitary commissioners on July 1, 1982, on June 1 or January 1 of the appropriate year.
In any other county, 6 years expiring on January 1 of the appropriate year.
The terms of sanitary commissioners in a single county district are staggered as required by the terms provided for sanitary commissioners on July 1, 1989.
The terms of the first sanitary commissioners appointed in a single county district created after June 30, 1982 are as follows:
For one sanitary commissioner, 2 years expiring on the second January 1 after the single county district is created.
For one sanitary commissioner, 4 years expiring on the fourth January 1 after the single county district is created.
For one sanitary commissioner, 6 years expiring on the sixth January 1 after the single county district is created.
At the end of a term, a sanitary commissioner in a single county district continues to serve until a successor is appointed and qualifies.
A sanitary commissioner in a single county district who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies.
At least 1 month before the term of a sanitary commissioner in a single county district expires, the governing body of the member county shall appoint a successor.
The sanitary commission of a district with 2 member counties consists of at least:
One sanitary commissioner from each member county appointed as the articles of incorporation of the district provide; and
One sanitary commissioner from either member county as the articles of incorporation of the district provide.
The sanitary commission of a multiple county district with at least 3 member counties consists of a number of sanitary commissioners equal to at least the number of member counties.
The sanitary commission of a district that adds an incoming member county consists of:
The sanitary commissioners in office before the admission of the incoming county; and
At least one sanitary commissioner from the incoming county.
A sanitary commissioner of a multiple county district shall be a resident of the member county from which the sanitary commissioner is appointed.
If a member county withdraws from a district, the term of each sanitary commissioner who was appointed from that county ends when the withdrawal is effective.
Except for the term of the first sanitary commissioner who represents each incoming county admitted to a district, the term of a sanitary commissioner in a multiple county district is the lesser of:
6 years; or
The term provided in the articles of incorporation of the district.
The term of the first sanitary commissioner from an incoming county admitted to a district is 6 years.
The terms of sanitary commissioners in a multiple county district are staggered as required by the articles of incorporation of the district.
At the end of a term, a sanitary commissioner in a multiple county district continues to serve until a successor is appointed and qualifies.
A sanitary commissioner in a multiple county district who is appointed after a term has begun serves only for the rest of the term and as required by the articles of incorporation of the district.
From among its sanitary commissioners, each sanitary commission shall elect a chairman who is the chief executive officer of the district.
In Somerset County, from among the sanitary commissioners, the commission shall elect a vice chairman.
Each sanitary commission shall appoint a secretary-treasurer.
In a single county district, a sanitary commissioner may not hold any other office of the county.
Unless the bylaws of the district require a larger number, a majority of the full authorized membership of the sanitary commission is a quorum.
Each sanitary commissioner is entitled to:
Compensation as approved and paid by the governing body of the member county from which appointed; and
Reimbursement for expenses as provided in the district’s budget.
The secretary–treasurer of the sanitary commission shall:
Collect all charges and assessments made by the district;
Receive all money payable to the district; and
Account to the sanitary commission for all money received.
To protect the funds of the district, the secretary–treasurer shall give bond to this State in accordance with this subsection.
The amount of and surety on the bond shall be approved by the sanitary commissioners.
The bond shall include the following condition:
“That if .........., secretary–treasurer of the .......... District, shall well and faithfully execute the office of secretary–treasurer and shall account to the sanitary commission of the .......... District for all moneys which the secretary–treasurer receives for the sanitary commission of the .......... District, or is answerable for by law, then the obligation of this bond is void, otherwise to be in full force.”
After the bond has been approved by the sanitary commissioners, the secretary–treasurer shall:
Take, before the clerk of the circuit court for a member county, the oath of office required by Article I, § 9 of the Maryland Constitution; and
File the bond with the State Comptroller.
The sanitary commission may pay the premium on a bond given under this section.
In addition to the powers set forth elsewhere in this subtitle, a sanitary commission may:
Determine the number of other officers, agents, and employees of the district; and
Determine the powers, duties, and compensation of other officers, agents, and employees of the district.
A sanitary commission may appoint a sanitary commissioner to any office of the district, set the compensation for that office, and require that the compensation be paid by the member county represented by that sanitary commissioner.
In addition to the other powers to make advances set forth in this subtitle, the governing body of a member county may make advances to a district in accordance with this section.
The advances shall be for the purpose of meeting the necessary operating and overhead expenses of the district from the time the district is created until it can receive funds that may be used to pay these expenses.
The advances shall be:
Paid from the general funds of the member county; and
In the amount that the governing body of the member county considers necessary.
The district shall repay the advances to the member county in accordance with the terms imposed by the governing body of the member county making the advances.
The governing body of the member county may not require the district to repay the advances before the time the district is allowed to impose minimum charges and usage charges under this subtitle.
The district may repay the advances to the member county before the time required under paragraph (1) of this subsection.
The district may repay the advances to the member county out of any funds whose use is not restricted but that are available to the district.
The County Commissioners of Allegany County may exercise jurisdiction over the county sanitary commission, as created under this Part III.
The County Commissioners of Garrett County shall govern the district in Garrett County.
For the purposes of carrying out this subtitle, each district has, in addition to the powers provided elsewhere in this subtitle, the powers set forth in Part IV of this subtitle.
Except as otherwise provided in this subtitle, a district has all of the powers, privileges, and immunities granted to Maryland corporations under the Maryland General Corporation Law.
Subject to the provisions of this section, a district may acquire rights in land or water rights by exercise of the right of eminent domain as set forth in Title 12 of the Real Property Article.
A district’s power of eminent domain does not extend to an interest in real property that is owned by a county, municipal corporation, or other political subdivision unless the governing body of that county, municipal corporation, or other political subdivision consents.
A district’s power of eminent domain does not extend to a privately owned and operated water system, sewerage system, or solid waste acceptance facility unless:
The owners and operators of the system or facility consent;
The system of a facility is not being operated or maintained as required by law; or
The system is needed as an integral part of a service area.
After complying with this subsection and no sooner than 10 days after judgment has been entered in the condemnation proceedings, the district may take any property that has been condemned under this section.
Before taking the property, the district shall pay to the court the amount of the award and costs taxed to date.
A district may combine the operations or finances of any combination of projects.
In this section the following words have the meanings indicated.
“Contracting party” means the other party to a contract made by a district under this section.
“Contracting party” includes:
A person;
A county of this State or any other state;
A municipal corporation of this State or any other state;
This State or any other state;
The United States;
Any instrumentality of this State, any other state, or the United States; and
Another district of this State or any other state.
“Contracting party’s system” means any of the following systems owned or operated by a contracting party:
A sewerage system.
A solid waste acceptance facility.
A solid waste disposal system.
A water system.
If its sanitary commission approves, a district may make a contract with a contracting party:
To buy services from the contracting party’s system;
To use the facilities of the contracting party’s system; or
To allow a contracting party or its customers to use the services or facilities of the district.
Any contract made under this section:
Shall require that the fees, rates, or charges collected under the contract be sufficient to pay the obligations of the contracting party; and
May allow a contracting party to collect from its customers the fees, rates, or charges due under the contract.
A contract made under this section is for the benefit of holders of the district’s bonds.
On the terms that the sanitary commission approves, a district may contract with any person, county, municipal corporation, adjoining state, or public authority or district of this State or an adjoining state, for the construction or operation of a water system, sewerage system, solid waste disposal system, or solid waste acceptance facility in this State or the adjoining state.
In this section, “public way” means any public street, public road, public alley, or public highway.
In accordance with this section, a district may enter or excavate on any public way to install, maintain, or operate a project.
The district is not required to obtain a permit or to pay a fee for an entry or excavation under this section.
Before beginning work under this section, the district shall notify the public authority responsible for the public way.
After completing the work under this section, the district, at its own expense, shall restore the public way to a condition at least as good as the condition that existed immediately before the work began.
In accordance with this subtitle and the terms of the grant or gift, a district may accept a grant or gift to carry out the purposes of this subtitle.
Except as otherwise provided in this section, the powers of a district continue as to any territory of the district that is annexed by a municipality or by a county that is not a member county.
The continuation of powers under this section expires when each contract, obligation, bond, and indebtedness of the district, for which the district was liable at the time of annexation, is extinguished.
In this section, “governmental agency” means:
The federal government;
This State; or
An agency or instrumentality of the federal government or this State.
A district may borrow from a governmental agency the amount of money that the sanitary commission considers necessary to pay the organization and planning costs for a project or a service area, including costs for:
Engineering services;
Legal services;
Estimates of costs;
Estimates of revenue;
Plans or specifications; and
Surveys.
A district may not pay interest on money borrowed from a governmental agency under this section.
If a district borrows from a governmental agency under this section, the district shall repay the lending governmental agency:
When work begins on the water system or sewerage system for which the borrowing was made; and
Only from funds or bond revenues that, under this subtitle, relate to the project.
If the governing body of each member county that has territory in the service area of the project approves, a district may borrow money and pay interest to provide interim financing for a project.
Borrowing under this section may not be for a period of more than 5 years.
Each member county that approves a borrowing under this subsection shall guarantee payment of the principal and interest in the same way that a county makes guarantees under Part VIII of this subtitle.
Each district shall:
Keep complete and accurate records of its receipts, expenses, and expenditures; and
Employ a certified public accountant to conduct a detailed audit of these records.
Each district shall make available for public inspection the district’s financial statement and the detailed audit.
At the district’s principal office and during normal business hours, any person may inspect the financial statement and the detailed audit.
Each year, each district shall give the governing body of each member county a certified copy of the financial statement and the detailed audit.
The governing body of any member county, at any time, may examine the books and records of the district.
The examination by the governing body of a member county under this subsection shall be without cost to the district.
A district may not construct, improve, operate, or extend any project that would duplicate or compete with any utility that is similar to a project and serves substantially the same purposes, unless:
The utility is a privately owned water system or sewerage system; and
The sanitary commission finds that the utility is unfit for incorporation into the district’s system.
A county that has created a district may not create a new district that would serve territory served by an existing district.
Unless, by ordinance or resolution, every other member county of each district of which the member county is already a member approves, a member county may not join or create another district.
As provided in this part, the sanitary commission and the governing bodies of the member counties of a district may create or change service areas in the district.
Except as provided in subsection (e) of this section, in considering a proposed service area, the sanitary commission and the governing bodies of the member counties may not create or change a service area unless they find that the creation or change:
Is necessary for the existing and future health, safety, and welfare of the public in general; and
Is feasible financially and from an engineering standpoint.
The governing bodies of the member counties of a district:
May authorize the district to retain expert engineering services to develop a plan for the creation of service areas in the district; and
Shall pay from the general funds of the member counties the cost of all engineering services obtained under this subsection.
In Allegany County, the boundaries of an existing service area may be changed to reduce the area included in the service area if the Sanitary Commission and the governing body of Allegany County make the findings specified in subsection (b) of this section and also find that the change in the boundaries of the service area would:
Exclude only properties which are not served by any project benefiting the service area or which the Sanitary Commission finds and determines will not be served within 2 years after the latter of:
The date on which the construction is completed for any project then under construction for the service area; or
The date on which the Sanitary Commission adopts a resolution to change the boundaries of the service area; and
Not cause the outstanding principal balance of bonds issued for the service area to exceed 25 percent of the total value of property, as assessed for county taxation, in the service area, as proposed to be reduced, on the date on which the Sanitary Commission adopts the resolution to change the boundaries of the service area.
In Worcester County, in considering a proposed service area, the Sanitary Commission and the governing body of Worcester County may not create or change a service area unless they find that the creation or change:
Is necessary for the existing or future health, safety, and welfare of the public in general; and
Is feasible financially and from an engineering standpoint.
Each sanitary commission may adopt a resolution that proposes to create a service area or to change the boundaries of an existing service area. The resolution shall refer to a plat of the member counties that clearly shows the boundary lines of the proposed service area.
The governing body of each member county shall hold a public hearing to consider the proposed service area or boundary change.
At least 10 days before the hearing required under this subsection, notice of the hearing shall be published in each member county in at least 1 newspaper of general circulation in the member county.
If the governing body of each member county approves the proposed creation of a service area or the proposed boundary change, a copy of the plat and the resolution required under subsection (a) of this section shall be recorded among the land records of each member county.
The sanitary commission shall give each service area to be created under this section a distinctive name.
A service area is created when the requirements of this section have been met.
Each service area created under this section is a separate taxing district.
A change in the boundaries of an existing service area does not affect any outstanding bond issued with respect to the existing service area.
This section does not authorize the creation of a service area that includes territory in another service area.
If the required number of property owners sign a petition that requests the creation of a service area in a district, the sanitary commission shall review the petition.
The required number of petitioning property owners is:
In Dorchester County, the lesser of:
25 percent of the property owners in the proposed service area; or
25 property owners in the proposed service area; and
In any other member county, 25 property owners in the proposed service area.
The petition:
Shall include a definite statement of the boundaries of the proposed service area;
May request that the proposed service area be designated as a new service area; and
If the proposed service area is contiguous to an existing service area, may request that the existing service area be extended to include the proposed service area.
If the sanitary commission approves the petition, the sanitary commission may:
Obtain a preliminary engineering survey that describes the feasibility and probable costs of providing to the service area the services that a district can provide under this subtitle; and
Submit the approved petition to the governing body of each member county of the proposed service area for consideration by that governing body.
If the sanitary commission disapproves the petition or does not obtain an engineering survey, the sanitary commission shall:
Notify each petitioner by mail of the sanitary commission’s action; and
Include in the notice an estimate of the cost of obtaining the engineering survey.
If the sanitary commission does not get an engineering survey, the sanitary commission may not take further action on the petition unless the petitioners pay to the district the estimated cost of the engineering survey.
If the petitioners pay the estimated cost of the engineering survey, the sanitary commission shall obtain the engineering survey in accordance with this section.
If the petitioners pay the cost of a survey under this section and if a service area later is created or changed under this section, the sanitary commission shall repay to the petitioners the survey costs incurred by the petitioners.
When the preliminary engineering survey is complete and after giving notice in accordance with this section, the sanitary commission shall hold a public hearing to consider the petition.
For at least 3 weeks before the hearing, notice of the hearing shall be published in each member county once a week in at least 1 newspaper of general circulation in the county.
The notice shall include:
A description of the proposed service area; and
The time and place of the hearing.
At the hearing, the sanitary commission shall provide a report of:
The latest estimate of the cost of creating the proposed service area;
The latest estimate of the cost of providing facilities in the proposed service area; and
How much of the cost will be funded by issuing bonds under this subtitle.
In deciding on a petition presented under this section, the sanitary commission shall consider:
The standards required under § 9-647 of this subtitle; and
Whether granting the petition would require a bond issuance that is excessive under subsection (n) of this section.
A bond issuance is excessive if:
The bond issuance is for funding a proposed service area; and
After the bond issuance, the unamortized balance of bonds issued for the proposed service area would exceed 25 percent of the total value of property in the service area, as assessed for county taxation.
The sanitary commission shall deny the petition if:
Granting the petition would violate the standards of § 9-647 of this subtitle; or
Granting the petition would require a bond issuance that is excessive under subsection (n) of this section.
The sanitary commission shall:
Issue an order that denies, grants, or modifies the petition; and
Publish its order in each member county where the proposed service area is located in at least 1 newspaper of general circulation in the county.
The governing bodies of the member counties in the proposed service area shall review the order of the sanitary commission, if at least 10 individuals who own property in and reside in the proposed service area request a review of the order within 10 days after notice of the sanitary commission’s order is published.
After due notice, the governing bodies of the member counties at a hearing shall consider de novo the factors that the sanitary commission was required to consider.
After the hearing, the governing bodies of the member counties may affirm or reverse the order of the sanitary commission.
When a proposed service area is approved finally under this section, the sanitary commission shall file plats of the service area:
In the office of the sanitary commission;
With the governing body of each county in which any part of the service area lies; and
With the clerk of the circuit court for each county in which any part of the service area lies for filing in a plat book among the land records.
The plats required under this subsection shall:
Be made under the supervision of the sanitary commission’s engineers;
Show the boundaries of the service area; and
In the case of the plat filed among the land records, be indexed in the records in the names of the district and the service area.
If a service area created under this section is a new service area, the sanitary commission shall give the service area a distinctive name.
A service area is created when the requirements of this section have been met.
Each service area created under this section is a separate taxing district.
In addition to the power to make any other advances under this subtitle, the governing body of a member county may advance to a district the funds necessary to organize and to meet the preliminary expenses of a service area or a proposed service area.
The district shall repay advances made under this section.
If a bond issue is made for the service area for which advances were made under this section, the district shall repay any outstanding advances to the member county from the proceeds of the first bond issue.
If consolidating administrative matters of service areas will not impair any bond obligation incurred by a district under this subtitle, the district may consolidate the administrative matters of service areas in accordance with this section.
If the action promotes efficient operation of the service areas, a district may:
Consolidate the operational, engineering, and financial functions of service areas;
Allocate costs among service areas; and
If this subtitle does not commit the funds for a specific purpose, combine funds of service areas.
After a service area has been created under § 9-648 or § 9-649 of this subtitle, the sanitary commission may obtain further surveys, plans, specifications, and estimates that relate to possible projects in a service area.
The sanitary commission may create, within a service area:
Water service subareas;
Sewerage service subareas; and
Solid waste disposal subareas.
In creating a service subarea under this subsection, the sanitary commission shall consider whether that creation:
Best serves the needs of the communities in the whole service area; and
Promotes convenience and economy of installation and operation of projects in the whole service area.
When a plan for a proposed project is complete or when the sanitary commission proposes to create service subareas, the sanitary commission shall give notice and hold a public hearing at which time any individual will be given an opportunity to be heard in accordance with this section.
The hearing shall be held within 5 days of the last date that notice of the hearing is published under subsection (f) of this section.
For 3 consecutive weeks before the hearing, the sanitary commission shall publish notice of the hearing in at least 1 newspaper of general circulation in each member county in which the proposed project or service subarea is to be located.
The notice shall include:
The probable cost, based on the latest available estimates, of the proposed project or subarea;
A statement that the plans for the proposed project or subarea may be inspected at the office of the sanitary commission; and
A statement that any individual interested in the proposed project or subarea will be heard at the hearing.
A statement of probable cost included in a notice under this section does not require that the actual cost be the same.
After the hearing, the sanitary commission shall issue a decision on the proposal.
On receipt of a proper petition that protests the proposal, the sanitary commission shall hold a second hearing and give notice of that hearing.
A petition for a second hearing by the sanitary commission shall:
Be signed by at least 25 resident landowners who would be served by the proposed project or who reside in the proposed service subarea;
Be filed with the sanitary commission within 10 days after the sanitary commission issues a decision under subsection (i) of this section; and
State the objections of the petitioners.
If a proper petition for a second hearing is filed with the sanitary commission, the sanitary commission shall hold a second hearing, if any, within 15 days after the petition is filed.
The sanitary commission shall give notice of the second hearing, if any, by:
Mailing the notice to at least 1 petitioner; and
Publishing a notice of the time and place of the hearing, at least 5 days before the second hearing, in at least 1 newspaper of general circulation in each county where the proposed project or service subarea is to be located.
After the second hearing, if any, the sanitary commission shall:
By majority vote of the sanitary commissioners, determine whether the petitioner’s objections are reasonable; and
Issue a written order that decides the issue.
The sanitary commission shall give notice of its order after any second hearing under this section by:
Mailing the order to at least 1 petitioner; and
Publishing the order in at least 1 newspaper of general circulation in each member county where the proposed project or service subarea is to be located.
Persons aggrieved by the decision of the sanitary commission following a second hearing under this section may appeal to the member counties in accordance with this section.
An appeal to the member counties may be made under this section if:
The appeal is signed by at least 20 of the petitioners for a second hearing before the sanitary commission; and
Within 10 days after notice of the sanitary commission’s decision after the second hearing is published under this section, the appeal is filed with the governing body of each member county where the proposed project or service subarea is to be located.
The governing body of each member county of the proposed project or service subarea shall hear the appeal from the second hearing.
After an appeal under this section, the proposed project or service subarea may not be established unless the governing body of each member county affirms the proposed project or service subarea.
The decision of the governing bodies of the member counties is final.
After the hearing processes required in § 9-648 or § 9-649 of this subtitle are complete, a sanitary district may begin construction on a project that has been approved under either of those sections.
The sanitary commission shall follow the bid solicitation procedure of this section for any construction work on the project, unless the cost will be $5,000 or less.
The sanitary commission may solicit bids for all or part of the project for which bids are sought.
Whenever the sanitary commission solicits bids under this section for construction contracts, the sanitary commission shall advertise the solicitation in each member county in at least 1 newspaper of general circulation in the county.
In addition to the advertising required by subsection (d) of this section, the sanitary commission may advertise the solicitation in other newspapers or technical journals.
If the sanitary commission awards a contract in response to bids received under this section, the sanitary commission shall award the contract to the lowest responsible bidder.
If the sanitary commission determines that the prices quoted in any bid are unreasonable or unbalanced, it may reject the bid.
If the sanitary commission rejects all the bids, the sanitary commission may:
Readvertise; or
Do the project or any part of it with its own temporary or permanent employees.
The sanitary commission may include in the contract additional conditions and requirements for:
Performance bonds;
Penalties; and
Liquidated damages.
To pay the principal and interest on bonds issued under this subtitle, a sanitary commission may set reasonable benefit assessments and reasonable connection charges.
In Allegany County, a sanitary commission may also set reasonable benefit assessments to pay the cost of capital improvements to a water or sewerage system.
The Sanitary Commission of Worcester County may also set reasonable benefit assessments and reasonable connection charges to pay other costs on bonds issued under this subtitle.
In Dorchester County, a sanitary commission may also set reasonable benefit assessments to pay the cost of capital improvements and repairs to a water or sewerage system.
Except for Worcester County, a connection charge made under this section shall be equal at least to the cost of making the connection between a water system or sewerage system and the property served by that system.
In Worcester County, a connection charge shall be equal at least to:
The actual cost of making the connection between a water system or sewerage system and the property served by the system; or
The average cost of making a connection based on:
The diameter and the length of the connector; or
The diameter of the connector and the width of the way in which the water pipe or sewer pipe is laid.
In the case of connectors constructed under § 9-661 of this subtitle during construction of the water line or sewer line, the Sanitary Commission of Worcester County shall determine a connection charge under paragraph (2)(ii) of this subsection that is the same on each side of the way in which the line is laid.
The Sanitary Commission may set benefit assessments on all property, improved or unimproved, that abuts a way in which a water main or sewer has been built.
The sanitary commission shall classify each parcel of property on which it may make a benefit assessment as:
Agricultural;
Business or industrial;
Small acreage;
Subdivision; or
A subclass of any of those classes.
The sanitary commission may change the classification of a parcel of property when the use of that parcel justifies its classification in another class or subclass.
Except as otherwise provided in this subtitle, the sanitary commission shall assess property:
On a front-foot basis; or
Under uniform rules and regulations adopted for the district and approved by the member counties.
Except as otherwise provided in this section, the sanitary commission shall make front-foot assessments that, each year, are as uniform as is reasonable and practical for each class or subclass of property in each service area.
Unless the parcel has an irregular shape, the sanitary commission shall determine the front-foot assessment for each parcel on the basis of the length of the parcel along the way in which the water pipe or sewer pipe is laid.
If a parcel has an irregular shape, the sanitary commission shall determine the front-foot assessment in a fair and reasonable manner.
As to a parcel classified as agricultural:
The sanitary commission may not make a front-foot assessment until a water or sewer connection is made to the parcel; and
When the water or sewer connection is made, the sanitary commission may not compute a front-foot assessment on the parcel for more than 300 feet of frontage.
As to a parcel classified as subdivision:
Even if the water pipe or sewer pipe does not extend along the entire frontage of the parcel, the sanitary commission may make a front-foot assessment;
Unless the parcel abuts parallel streets, the sanitary commission may not make a front-foot assessment for more than 1 side of the parcel; and
If the parcel is on a corner, the sanitary commission may average the frontage of the parcel and determine the front-foot assessment for the parcel in a fair and reasonable manner.
The sanitary commission may make for a parcel a front-foot assessment that is less than the assessment levied on other parcels in the service area, if the parcel is served by a system:
That is acquired by the sanitary commission;
That was not a municipal system; and
Whose cost to the sanitary commission was affected by the fact that the construction costs of the system were any part of the purchase price of the parcels serviced by the system.
To acquire revenues needed to carry out the purposes of this section, the sanitary commission may change the front-foot assessment for each class and subclass of property.
In this subsection “Bonnie Brook Service Area” includes the Bonnie Brook Sanitary District.
In the Bonnie Brook Service Area, in order to make capital improvements and repairs or to establish a reserve for capital improvements and repairs, the Dorchester County Sanitary Commission may make a uniform assessment on each lot that abuts on a way in which a water main is laid.
An assessment under this subsection is in addition to any charges made under § 9-662 of this subtitle.
An assessment under this section shall be based on a flat fee for each lot under uniform rules and regulations approved by the Dorchester County Commissioners.
In this subsection, “service area number 1” includes sanitary district number one.
In service area number 1, the Dorchester County Sanitary Commission shall impose, on each parcel that abuts any way in which a sewer is built, a benefit assessment of at least $50.
The sanitary commission shall give to the owner of each parcel of property written notice of:
The class and subclass of the parcel;
If a front-foot assessment method is used, the number of feet assessed and the assessment for each foot;
If a method other than front-foot assessment is used, the assessment made on the parcel; and
The time and place of the hearing to which the owner is entitled under this subsection.
The sanitary commission shall serve the owner with the notice by:
Mailing the notice to the last known address of the owner;
Leaving the notice with an adult who occupies the parcel; or
Posting a copy of the notice on the parcel, if the parcel is vacant or unimproved.
Subject to a hearing under subsection (n) of this section, a decision of the sanitary commission as to a classification or a benefit assessment is final.
The sanitary commission:
Shall give each property owner an opportunity for a hearing before the sanitary commission;
Shall hold the hearing in accordance with the Administrative Procedure Act; and
After the hearing, may adjust a classification or benefit assessment as appropriate.
A benefit assessment shall be paid each year for a period of years that is coextensive with the maturity date of the bonds that financed the construction that was the subject of the benefit assessment.
When the sanitary commission has determined a benefit assessment, and except as otherwise provided in this section, the sanitary commission shall levy a benefit assessment, so that the levy will be effective on the July 1 that next follows the first March 31 that occurs on or before which the construction is completed on the project for which the benefit assessment is made.
The Allegany County Sanitary Commission may make the levy of a benefit assessment effective on the date on which the construction is completed on the project for which the benefit assessment is made.
If the Allegany County Sanitary Commission makes a levy on the date on which the construction is completed, it shall prorate the levy on the basis of the benefit assessment for an entire year and the time remaining until July 1.
The Dorchester County Sanitary Commission may make the levy of a benefit assessment effective on the date on which:
The construction is substantially completed; or
The system is in use for the project for which the benefit assessment is made.
If the Dorchester County Sanitary Commission makes a levy on the date on which the construction is substantially completed or when the system is in use, it shall prorate the levy on the basis of the benefit assessment for an entire year and the time remaining until July 1.
While unpaid, benefit assessments and other charges are a lien on the parcel for which made.
The lien granted by this section is subordinate only to State taxes and municipal taxes.
As to each lien that arises against a parcel in the district, the sanitary commission shall keep a public record that:
Identifies the owners of the parcel;
Describes the parcel and gives any lot number of record that applies to the parcel; and
Shows the amount of the lien.
The sanitary commission shall file the record of liens among the land records of the county where the parcel is located.
The record of liens shall be legal notice of all existing liens in the district.
To enforce the collection of unpaid benefit assessments or other charges that are at least 60 days overdue, the sanitary commission, at any time, may:
Sue any person who was an owner of record of the parcel at any time since the benefit assessment was last paid; or
File a bill in equity to enforce a lien through a decree of sale of property against any person who was an owner of record of the parcel at any time since the benefit assessment was last paid.
In addition to the actions that the sanitary commission may take under paragraph (1) of this subsection, in Allegany County, Dorchester County, Garrett County, and Somerset County, the sanitary commission may disconnect the service.
When recorded, the lien is legal notice to any person who has any interest in a parcel.
The governing body of Kent County may authorize by local law the sale of real property to enforce a lien based on unpaid benefit assessments or other charges under this subtitle. The procedures for establishment, notification, and enforcement of a lien authorized by the governing body in accordance with this subsection shall conform to the provisions of Chapter 152 of the Code of Kent County, governing collection of real property taxes in arrears.
If the sale of real property is authorized under paragraph (1) of this subsection, in addition to any remedy under subsection (g) of this section, the sanitary commission may request that the county tax collector conduct a sale of real property to enforce a lien at a county tax sale in accordance with the same procedures governing the sale of property for delinquent property taxes and the county tax collector may conduct the sale.
In addition to any remedy under subsection (g) of this section, in Allegany County, Dorchester County, and Somerset County, the sanitary commission may request the county tax collector to conduct a sale of real property to enforce a lien representing any unpaid benefit assessment or other charges under this subtitle at a county tax sale in accordance with the same procedures governing the sale of property for delinquent property taxes.
In Allegany County, the tax collector in Allegany County may conduct a county tax sale for the purpose of enforcing a lien as specified in paragraph (1) of this subsection.
In Dorchester County, the tax collector in Dorchester County may conduct a county tax sale for the purpose of enforcing a lien as specified in paragraph (1) of this subsection.
In Somerset County, the tax collector in Somerset County may conduct a county tax sale for the purpose of enforcing a lien as specified in paragraph (1) of this subsection.
The sanitary commission shall connect the water system or sewerage system to any parcel:
Whose owner requests the connection;
That does not abut a way in which a water pipe or sewer pipe is laid; and
That is not the subject of a benefit assessment levied under § 9–657 or § 9–658 of this subtitle.
However, the Sanitary Commission of Worcester County may also construct or permit the construction of a connector to any parcel described under paragraph (1) at a time and in a manner that it determines to be appropriate.
The sanitary commission shall classify the parcel and determine a front–foot charge on the parcel as if the parcel abutted on a way in which a water pipe or sewer pipe is laid.
When a connection is made under this section, the owner of the parcel has the same rights and duties and the district has the same remedies as to the benefit assessment that apply to benefit assessments under §§ 9–657 and 9–658 of this subtitle.
Payment of a benefit assessment made under this section:
Is due when levied by the sanitary commission;
Is in default 60 days after the payment is due; and
When in default, bears interest from the date of default:
In Allegany and Somerset counties, at the rate set by the respective Sanitary Commission; and
In all other counties, at the rate of 0.5 percent a month.
In this section, “district account” means the account maintained by a sanitary commission in accordance with this section.
A sanitary commission shall:
Maintain a district account; and
Credit to the district account all proceeds from the benefit assessments levied under this subtitle.
The sanitary commission shall use funds in the district account to pay the principal and interest on the bonds for which the benefit assessment was levied.
During construction of a water line or a sewer line, the sanitary commission, at its own expense, shall construct a connector to the property line of each parcel that abuts the way in which the water line or sewer line is laid.
However, the Sanitary Commission of Worcester County may determine not to construct a connector to any parcel that lacks a plumbing system at the time of construction of the line. At a time and in a manner that it determines to be appropriate, the Sanitary Commission of Worcester County shall construct or permit the construction of a connector to any parcel:
Whose owner requests the connection subsequent to the construction of the water line or sewer line; and
That abuts the way in which the line is laid.
When construction on the water line or sewer line is complete, the sanitary commission shall notify each abutting property owner of the completion.
On receipt of the notice of completion, and by a time set by the sanitary commission, each owner of abutting property shall:
Pay the connection charge determined under this section; and
Make appropriate connections of the plumbing system on the property to the connector constructed by the sanitary commission.
Any plumbing system of each parcel of abutting property that is to be served shall include at least:
1 toilet that the sanitary commission approves; and
1 washbasin that the sanitary commission approves.
When the plumbing system of the property has been connected to the connector constructed by the sanitary commission, the owner of the property shall disconnect, as appropriate, each cesspool, sink drain, and privy on the property so that the disconnected component is:
Closed;
Abandoned; and
In a sanitary condition so that no odor or nuisance can arise from it.
Except for the Sanitary Commission of Worcester County, a sanitary commission shall determine a connection charge that is:
At least equal to the actual cost to the district of constructing the connector;
Based on the length of the connector and width of the way in which the water pipe or sewer pipe is laid; and
The same on each side of the way.
The Sanitary Commission of Worcester County shall determine connection charges as provided under § 9-656(b)(2)(ii) of this subtitle.
Except for the Sanitary Commission of Worcester County, if the connection charges collected under this section are more than the cost of the connections made, a sanitary commission shall:
Keep the excess revenues in a special fund; and
Use the fund only for repairs, replacement, and extraordinary expenses of the water system or sewer system.
In Worcester County, if the connection charges are more than the cost of the connections made, the Sanitary Commission shall:
Keep the excess revenues in a special fund;
Use the fund for repairs, replacement, and extraordinary expenses of the water system or sewer system; or
Use the fund for any other purpose relating to the operation of the service area to which the fund relates.
For each project that it operates, a district may charge the owners of parcels serviced by or connected to the project:
A minimum charge; and
A usage charge that is based on the use of the project by the owner of the parcel.
The district shall use funds received from charges made under this section:
To operate, maintain, and repair the project;
To maintain proper depreciation allowances;
To pay operation expenses of the district;
To repay advances made by member counties under § 9–628 of this subtitle; and
To pay the principal and interest on bonds issued under this subtitle.
For water service, the sanitary commission:
Shall make a minimum charge:
That is based on the size of the meter serving the property and is uniform throughout the service area for each size of meter; and
That, for properties to which no meter is connected, is reasonable and uniform throughout the service area; and
Subject to the meter size and uniformity requirements of this subsection, may change the minimum charge as necessary.
For sewerage service, the sanitary commission shall:
Make a minimum charge that is reasonable and uniform throughout the service area; and
Collect, each year, the minimum charge in the same manner as the sanitary commission collects benefit assessments.
If a minimum charge for sewerage service is unpaid, the minimum charge has the same status as an unpaid benefit assessment.
For solid waste disposal systems, the sanitary commission shall make a minimum charge that is reasonable and uniform throughout the service area.
If the sanitary commission uses a water meter, the sanitary commission shall connect the water meter at the sanitary commission’s expense.
For water usage, the sanitary commission shall make a charge that:
Is based on meter readings; or
If no water meter is connected to the property, is:
Based on the estimated water usage; and
Uniform among unmetered properties in the service area.
For sewerage systems and solid waste disposal systems, the sanitary commission shall make a reasonable usage charge.
Except for bills for minimum charges for sewerage services, the sanitary commission:
Shall send to each property owner:
For water service, a bill for minimum charges and usage charges for water once each 3 or 6 months; and
For other charges, a bill once each 3, 6, or 12 months; and
May stagger the frequency and dates of bills sent under this section.
The property owner promptly shall pay any bill sent under this section.
If a water bill is unpaid for 30 days after being sent, and after written notice is left on the premises or mailed to the last known address of the owner, the sanitary commission may:
Disconnect water service to the property; and
Require, before reconnecting water service, payment of the entire water bill plus a reconnection charge reasonably related to the cost of reconnection, as established by ordinance of the governing body of the county or municipal corporation in which the water service is provided.
If a charge for which a bill sent under this section is in default 60 days after the bill is sent, the charge is in default.
When a charge is in default, it is a lien on the property and the sanitary commission may collect the charge in the same manner as benefit assessments.
This subsection applies only in Dorchester County and Somerset County.
Notwithstanding any other provisions of law:
A district may charge an owner of a parcel serviced by or connected to a project that the district operates a late fee for any unpaid usage charge that is based on the use of the project by the owner of the parcel;
A sanitary commission may require, before reconnecting water service, payment of any applicable late fees in addition to any other charge authorized by this section; and
A charge that is in default shall accrue interest from the date of default at a rate set by the sanitary commission.
In Garrett County, notwithstanding any other provisions of law:
The district may charge an owner of a parcel serviced by or connected to a project that the district operates a late fee for any unpaid usage charge that is based on the use of the project by the owner of the parcel;
The County Commissioners of Garrett County may require, before reconnecting water service, payment of any applicable late fees in addition to any other charge authorized by this section; and
A charge that is in default shall accrue interest from the date of default at a rate set by the County Commissioners.
This subsection applies only to property subject to a condominium regime established under Title 11 of the Real Property Article.
Notwithstanding any other law, if the sanitary commission directly bills the governing body of a condominium or a person designated by the governing body of a condominium for water or sewer usage charges for all or a portion of the units in a condominium property, and a charge is in default for at least 60 days, the sanitary commission shall post notice conspicuously at or near the entry to the common area of the condominium.
The sanitary commission may enter onto the common area of a condominium property at a reasonable time to post the notice required under this subsection.
A sanitary commission:
Shall control the use of water in its district; and
Has jurisdiction over each fire hydrant connected to a system operated by the district.
If a sanitary commission determines that there is a shortage of water or that the supply of water should be conserved, the sanitary commission may:
Issue an order that requires the conservation of water; and
Include in the order specific requirements for conserving water use.
The sanitary commission shall publish the order in a newspaper published in each member county covered by the order.
Each water user shall obey the order of the sanitary commission, effective with the earlier of:
The first publication of the order; or
Receipt of the order from the sanitary commission.
Without notice, the sanitary commission may disconnect the water supply of any person who violates the order.
To prevent waste of water, a representative of a sanitary commission at any reasonable time may enter any property connected to a system operated by the district and inspect the plumbing system on the property.
On entering any property, the representative of the sanitary commission shall present appropriate credentials to the owner, operator, or agent in charge.
After the inspection, the representative of the sanitary commission may order necessary changes to the plumbing system:
To eliminate leaks;
To prevent water loss; and
To prevent unnecessary or improper use of sewers.
An independent system may be constructed in accordance with this section:
By a member county at its own expense; or
By and at the expense of the owners of property that will be served by the independent system.
A person or member county may construct an independent system only if:
The independent system will serve an area that is not served by a project or a municipal system; and
The sanitary commission approves.
The person or member county that proposes to construct the independent system shall:
Submit to the sanitary commission plans and specifications for construction of the independent system; and
If the sanitary commission approves the plans and specifications, construct the independent system in accordance with the approved plans and specifications.
Each independent system shall be operated:
At the expense of the person or county that constructs it; and
Under the general supervision of the sanitary commission.
The person or county that constructs an independent system shall:
Keep accurate records of:
The construction of the independent system;
The operation of the independent system; and
The cost of building and operating the independent system; and
File copies of the records with the sanitary commission.
In accordance with this section, a district may buy an existing municipal system or independent system.
The purchase may be on any terms that are:
In accordance with this subtitle; and
Agreed on by the sanitary commission and the owner of the municipal system or independent system.
In Worcester County, notwithstanding any other provision of this article or any regulation adopted under this article, an agreement to purchase an independent system may include long-term commitments by the Sanitary Commission of Worcester County or the County Commissioners of Worcester County to provide water and sewer service to, and maintain appropriate zoning, development, permits, and other land use regulations for, land within the previous franchise area of the independent system at any terms and conditions that the Sanitary Commission or the County Commissioners determines to be appropriate.
For the purposes of this paragraph (3) of this subsection, the County Commissioners of Worcester County may make long-term commitments concerning zoning, development, permits, or other land use regulations. Also, the Sanitary Commission of Worcester County may make long-term commitments to provide for water or sewer service.
Except for a nominal amount to bind the agreement, before the district pays any part of the purchase price, the seller of the municipal system or independent system shall provide the sanitary commission with a verified written statement that gives the name and address of each person who has any interest in, or claim against, any property of the municipal system or independent system.
By personal delivery or by certified mail, return receipt requested, bearing a postmark from the United States Postal Service, the sanitary commission shall give notice of its intention to buy the system to each person named in the verified statement provided under subsection (b) of this section.
At least 3 weeks before a purchase is made under this section, the sanitary commission shall publish, in each member county where the system to be bought is located, a notice of its intention to buy a system. The notice shall be published in each member county in at least 1 newspaper of general circulation in the county.
In each notice delivered, mailed, or published under this subsection, the sanitary commission shall include a date on which the sanitary commission will hear persons who have an interest in or claim against any property of the municipal system or independent system.
On or before the date specified in the notice, each person who has a claim against any property of a municipal system or independent system shall file with the sanitary commission notice of that claim.
On the date specified in the notice, the sanitary commission shall hold a hearing to determine the claim of any person who has filed a notice of claim with the sanitary commission.
The sanitary commission’s decision on the claim is final.
By exercise of the power of eminent domain as provided in Title 12 of the Real Property Article, the district may acquire rights in an independent system if the owner of the independent system:
Has rejected an offer made under this section; or
Has not accepted, within 90 days of the offer, an offer made under this section.
The district may not acquire a municipal system under the power of eminent domain.
When the district has paid the purchase price or condemnation award:
The rights of the district with respect to the acquired system are the same as if the district had itself built that system; and
Except as otherwise provided in this subsection, all parcels of property served by the acquired system are subject to the provisions of this subtitle as if the district had itself built the system.
A person whose parcel was connected properly to a municipal system or independent system at the time the district acquired that system is not required to pay a connection charge to the district for connection to that parcel.
A municipality may use funds received from the district under this section:
To redeem, buy, or pay the principal and interest on bonds issued for the municipal system; and
To pay any other debt outstanding against the municipal system.
This section does not authorize the acquisition of any part of a municipal system or independent system that:
Is constructed improperly;
Does not have sufficient capacity; or
Was constructed without the authority from the Department that was required when that system was constructed.
On the request of property owners whose property is not in any service area but is in an area that is contiguous to a service area, the sanitary commission may extend a project to include the properties that are the subject of the request.
The sanitary commission may require that the property owners agree:
To pay benefit assessments;
To pay connection charges; and
To any other condition that the sanitary commission makes.
The provisions of this section are applicable in Dorchester County.
On the request of property owners whose property is not in a service area and is not in an area that is contiguous to a service area, the sanitary commission may:
Extend a project to include the properties that are the subject of the request; or
Provide other services to the properties.
The sanitary commission may require that the property owners agree to the terms and conditions authorized under § 9-666(b) of this subtitle.
Property covered under this section and owners of property covered under this section shall be subject to the provisions of § 9-658(d) through (g), inclusive.
If the sanitary commission determines that any part of an independent system is unfit for incorporation into a project, the sanitary commission may:
Disregard the unfit parts of the independent system; and
Extend its project into the area served by the unfit parts of the independent system.
For the construction, maintenance, or operation of any part of a project, the district may acquire any interest in real property by:
Purchase; or
Exercise of the power of eminent domain as provided in Title 12 of the Real Property Article.
Except as otherwise provided in this subsection, the district may condemn a property right in a cemetery only to install a sewer line or a water line.
The district may not condemn any property rights in and may not disturb:
Any existing grave;
Any grave marker or monument;
Any grave site whose title has been transferred through a sale or exchange made in good faith; or
Any grave site as to which burial rights have vested or been transferred through a sale or agreement made in good faith.
Before the district condemns a property right in a cemetery, the sanitary commission shall adopt a resolution that:
Is approved by a majority of the sanitary commissioners appointed from the member county in which the cemetery is located;
Includes a declaration that the condemnation is necessary for the public health and safety; and
Includes a declaration that immediate acquisition of the property right in the cemetery is necessary.
The sanitary commission shall bury every water line and sewer line that it builds in cemetery land.
A person who owns any structure or obstruction that is on, over, or under a way shall promptly move that structure or obstruction, if:
The structure or obstruction impedes the building or operation of a project; and
The sanitary commission gives reasonable notice of the need to move the object or obstruction.
The person shall move the object as necessary to allow the orderly building or operation of the project.
The district shall pay the cost of moving the structure or obstruction.
A sanitary commission may disconnect service to a property on a finding or notification from the governing body of the political subdivision in which the property is located that the property is:
A vacant lot; or
Cited as vacant and unfit for habitation on a housing or building violation notice.
Subject to subsection (c) of this section, on request by the owner of the property, the sanitary commission shall restore service to a property where service was disconnected in accordance with subsection (a) of this section.
A sanitary commission may require proof that all housing and building violation notices for a property have been resolved prior to restoring service under subsection (b) of this section.
Prior to restoring service under subsection (b) of this section, a sanitary commission may require the owner of the property to pay:
All unpaid fees, charges, or assessments for service at the property; and
Any reconnection fees for service at the property.
In Part VII of this subtitle the following words have the meanings indicated.
“Shared facility” means a water system or sewerage system that serves:
More than 1 lot;
More than 1 single family residence or its equivalent; or
A series of water systems or sewerage systems that each serve 1 lot.
“Shared facility area” means the territory served by a shared facility.
Part VII of this subtitle applies only to Dorchester County.
The Dorchester County Sanitary District, Inc., may:
Construct, buy, own, hold, lease, repair, maintain, improve, and operate a shared facility; and
Contract with any person, any agency of the federal government or this State, or any municipality for services that relate to the facility.
The shared facility may be built only:
Outside an incorporated area of Dorchester County; and
Outside a service area; or
If inside a service area, to serve territory that the Sanitary Commission determines is not feasible to serve with an existing project.
The shared facility may not serve more than 14 single family residences or their equivalent.
The owners of property in territory that may be served by a shared facility may file a written petition with the Sanitary Commission that requests the Sanitary Commission:
To build a shared facility; and
To designate a shared facility area.
The petition shall include:
Plans for the proposed shared facility that will enable the Sanitary Commission to determine the cost and feasibility of the proposed shared facility; and
A map of the proposed shared facility area.
The petitioners shall provide, at their own expense, the map and plans required by this section.
Within 90 days from the date the complete petition is filed, the Sanitary Commission shall decide on the petition.
In deciding on a petition, the Sanitary Commission may designate a shared facility area if the Sanitary Commission finds that:
The proposed shared facility is necessary for the public health, safety, and welfare of the residents of Dorchester County who would be affected by the proposed shared facility; and
It is feasible:
To construct the proposed shared facility; and
To establish the proposed shared facility area.
If the Sanitary Commission denies the petition, the petitioners, within 30 days after the denial, may appeal to the Dorchester County Commissioners.
The Dorchester County Commissioners:
Shall determine whether the proposed shared facility meets the applicable standards of this section; and
May affirm, modify, or reverse the decision of the Sanitary Commission.
When a petition is approved by the Sanitary Commission or the Dorchester County Commissioners, the Sanitary Commission shall:
Adopt a resolution that:
Provides for construction of the shared facility; and
Designates the boundaries of the shared facility area; and
File the resolution among the Dorchester County land records.
The Sanitary Commission shall propose and, with the approval of the Dorchester County Commissioners given after a public hearing, adopt rules and regulations to carry out the provisions of this subtitle that relate to shared facilities.
These rules and regulations shall include provisions for:
Classification of properties in the shared facilities area; and
Levy of benefit assessments in accordance with this subtitle.
The Dorchester County Commissioners may advance funds to the Dorchester County Sanitary District, Inc., to meet the organizational and preliminary costs of establishing and constructing the shared facility.
From the first revenues received from benefit assessments made for the shared facility, the Sanitary Commission shall repay advances made under this section.
In accordance with the rules and regulations that the Dorchester County Commissioners approve:
The Sanitary Commission shall make benefit assessments on the property in a shared facility area in an amount that is enough to:
Pay the principal and interest on each bond issued and any other obligation incurred by the Sanitary Commission in constructing the shared facility; and
Pay any other costs incurred in building the shared facility; and
The Sanitary Commission may establish reasonable charges on each parcel in the shared facility area.
The Sanitary Commission shall give to the owner of each parcel in the shared facility area written notice of:
The class and subclass of the parcel;
The benefit assessment for the parcel; and
The time and place of the hearing to which the owner is entitled under this section.
The Sanitary Commission shall mail the notice to the owner at the last known address of the owner on the Dorchester County tax assessment records.
The Sanitary Commission shall give each property owner an opportunity for a hearing before the Sanitary Commission.
After the hearing, the Sanitary Commission may adjust the classification or benefit assessment as appropriate.
The Sanitary Commission shall make the levy of each benefit assessment the Sanitary Commission determines under this section so that the levy is effective for the July 1 that follows the first March 31 that occurs on or after the date:
Construction is completed on the shared facility; or
The shared facility is acquired.
While unpaid, benefit assessments and other charges are a lien on the parcel for which made.
The lien granted by this subsection is subordinate only to State taxes and municipal taxes.
As to each lien that arises against a parcel in the shared facility area, the Sanitary Commission shall keep a public record that:
Identifies the owners of the parcel;
Describes the parcel and gives any lot number of record that applies to the parcel; and
Shows the amount of the lien.
The Sanitary Commission shall file the record of liens with the Clerk of the Circuit Court for Dorchester County, for filing among the land records for Dorchester County.
The record of liens shall be legal notice of all existing liens in the shared facility area.
To enforce the collection of unpaid benefit assessments or other charges that are at least 60 days overdue, the Sanitary Commission, at any time, may:
Sue any person who was an owner of record of the parcel at any time since the benefit assessment was last paid; or
File a bill in equity to enforce a lien through a decree of sale of property against any person who was an owner of record of the parcel at any time since the benefit assessment was last paid.
When recorded, the lien shall be legal notice to any person who has any interest in a parcel.
Subject to the limitations and requirements of this subtitle, the sanitary commission and the member counties of the district may pledge the full faith and credit of the district and its members and issue bonds in the name of the district to pay the cost of a project in the amount estimated when the resolution authorizing the bond issue was adopted.
The issuance of bonds under this subtitle is not subject to any condition or limitation of law that is not in this subtitle.
A district may not issue for a service area any bonds that, when added to the outstanding and unpaid bonds already issued for that service area, would result in a total bond issuance that exceeds 25 percent of the total value of property in the service area, as assessed for county taxation.
Before a district issues any bonds, the sanitary commission shall:
Adopt a resolution that proposes the issuance of the bonds; and
Submit the resolution to the governing body of each member county of the district.
If the governing body of each member county approves the resolution, the district may issue the bonds in accordance with this subtitle.
Before a district issues any bonds:
The sanitary commission shall make the determinations required by this section; and
After the sanitary commission makes the determinations, the district shall issue the bonds in accordance with the determinations.
The sanitary commission:
Shall determine the form of the bonds;
Shall determine the manner of execution of the bonds;
Shall determine the denominations of the bonds;
Shall determine the place, which may be any bank or trust company, where the principal and interest of the bonds will be paid;
Shall determine whether interest coupons will be attached to the bonds and, if so, the form of the coupons;
May determine whether the bonds will be issued in:
Coupon form;
Registered form; or
Coupon form and registered form;
May determine whether coupon form bonds will be registered as to:
Principal; or
Principal and interest;
May determine a method for reconverting into coupon form bonds any bonds that are registered as to principal and interest;
May determine whether the district will redeem bonds before maturity, and if so, shall specify:
The terms and conditions the sanitary commission will impose as to redemption before maturity; and
The method the sanitary commission will use in determining the prices the district will pay to redeem bonds before maturity;
Shall determine any other condition, term, or provision as to the bonds that the sanitary commission is required to make under this subtitle; and
May determine any other condition, term, or provision as to the bonds that the sanitary commission is allowed to make under this subtitle.
Bonds issued under this subtitle shall:
Be dated;
Bear interest at the rate or rates that the sanitary commission determines;
Bear the seal of the district;
Be signed for the district;
Bear maturity dates that:
Are determined by the sanitary commission; and
Are not more than 40 years from the date of issue; and
Subject to the limitation on liability of each member county of a multiple county district under § 9-696 of this subtitle, be endorsed by each member county as follows: “The payment of interest when due and the principal at maturity is guaranteed by .......... (name of member county), Maryland”.
An officer of the district shall sign the bonds for the district.
Within 10 days after the sanitary commission submits the bonds to a member county for endorsement, the endorsement of the member county guaranteeing the bond shall be signed by:
The clerk or secretary of the governing body of the member county; and
The chief executive officer of the member county; or
Another officer of the member county authorized by a resolution of the governing body of the member county to sign the endorsement.
The validity of a signature or facsimile of a signature made under this section is not affected by the fact that the individual whose signature is on the bond no longer holds the office that authorized the individual to sign the bond, even if the bond is delivered after that individual leaves the office.
In the manner that the sanitary commission determines to be in the best interest of the district and the member counties, a district may sell bonds issued under this subtitle:
At public or private sale; and
At a price that meets the requirements of this section.
The district may not sell bonds at a price so low that the effective rate of interest is greater than the rate of interest that the sanitary commission has determined for the bonds.
The effective interest rate of the bonds shall be computed:
Without regard to any premium that might be paid to redeem the bonds before maturity; and
Otherwise in accordance with standard tables of bond values.
Bonds issued under this subtitle are:
Fully negotiable within the meaning of and for all the purposes of Title 8 of the Commercial Law Article; and
Exempt from all State, county, and city taxation.
Before the definitive bonds are available for delivery to bond holders, the district may issue:
Interim receipts for payment for the bonds; or
Temporary bonds with or without coupons.
The interim receipts or temporary bonds may be exchanged for definitive bonds when the definitive bonds are available.
A sanitary commission may provide for the replacement of bonds that are mutilated, destroyed, or lost.
A district may use the proceeds from bonds issued under this subtitle only:
To pay costs incurred for the projects for which the bonds were issued; or
In accordance with this section.
The district shall disburse the proceeds as the sanitary commission provided in its authorizing resolution.
If the proceeds from bonds issued under this subtitle are insufficient to pay the costs incurred for the projects for which the bonds were issued, the district may issue additional bonds to make up the deficit.
Unless the sanitary commission provided otherwise in its authorizing resolution, bonds issued under this subsection:
Are deemed to be from the same series that originally was issued for the project; and
Shall be repaid without preference to or priority for the bonds that already were issued for the project.
If the proceeds from bonds issued under this subtitle exceed the costs incurred for the projects for which the bonds were issued and if the authorizing resolution so requires, the district shall use the surplus to retire bonds of the same series.
If the proceeds from bonds issued under this subtitle exceed the costs incurred for the projects for which the bonds were issued and if the authorizing resolution does not otherwise require:
The district shall use the surplus to pay the next payment of principal on the bonds;
The sanitary commission shall adopt a resolution that authorizes the use of the surplus to pay for other projects that are in the same service areas as the projects for which the bonds were issued and then use the surplus in accordance with the resolution; or
The district shall use the surplus to cancel bonds of the same series by buying the bonds on the open market at a price that:
Does not include a premium of more than 5 percent of the par value; and
The sanitary commission determines to be in the best interests of the district and the member counties served by the projects for which the bonds having excess proceeds were issued.
In accordance with the provisions of this subtitle that generally govern the issuance of bonds, any district may issue refunding bonds to refund, pay, or discharge the principal or interest of:
Any other bond issued under this subtitle; and
Any other indebtedness incurred to acquire or construct a project.
To retire bonds issued under this subtitle, each year, the sanitary commission, as to each series of outstanding bonds, shall determine or estimate:
The principal and interest that will be due on that series through the end of the next full taxable year for property taxes in the member counties; and
The amount of benefit assessments that will be collected on projects for which that series was issued and the amount of any other funds that will be available to that series through the end of the next full taxable year for property taxes in the member counties.
At least 60 days before the taxable year for property taxes, the governing body of each member county shall certify to the sanitary commission the total valuation of all taxable property in each service area in that member county.
If, after making the estimate of necessary funds under this section, the sanitary commission determines that there will be insufficient benefit assessments or other funds available to pay the principal and interest referred to in subsection (a) of this section, the sanitary commission shall:
Compute the deficiency as to each service area in the district; and
On the basis of the tax base information supplied by the member county under this section, certify to each member county the tax rate that will be required in each service area in that member county to meet the deficiency.
The governing body of each member county shall impose on all real property in each service area in that member county, and may impose on personal property in the service area, a property tax that is sufficient to pay a deficiency specified in subsection (c) of this section.
If, after the imposition made under paragraph (1) of this subsection, the deficiency is still unpaid, the governing body of each member county shall impose on all real and personal property in that member county a property tax that is sufficient to pay the remaining deficiency.
In Allegany County:
The governing body of the county shall levy a property tax on all real property within a sanitary district that is abutted or served by a sanitary sewer or water line; and
The Sanitary Commission shall certify to the governing body of the county a complete list of all real property within a district that is abutted or served by the sanitary sewer or water line.
If property tax collections made under this section in a fiscal year are insufficient to meet a deficiency under subsection (c) of this section, the governing body of each member county, in accordance with subsection (d)(1) of this section, shall impose, for the next fiscal year, property taxes sufficient to make up the insufficient collections.
All property taxes levied under this section:
Have the status of county taxes; and
Shall be collected as county taxes.
At least every 60 days, the tax collecting authorities for each member county shall pay to the district the property taxes collected under this section.
The district shall pay, when due, the principal and interest on bonds:
First, from all other funds available, under this subtitle, for that purpose; and
Then, if necessary, from tax revenues received under this section.
The district shall deposit the excess tax revenues in a bank in a member county where the service area from which the tax revenues were received is located.
The deposit shall be to the joint credit of the member county and the district.
From the proceeds of the sale of bonds under this subtitle, the district may pay, on those bonds, interest that does not exceed 1 year’s interest.
If bonds issued under this subtitle are guaranteed by more than 1 member county, the liability of each member county on its guarantee is in proportion to the assessable base of that part of the property of the county that is in the service areas for which the bonds were issued as that proportion relates to the assessable base of all property in all the service areas for which the bonds were issued.
Each person who has a duty to act in the payment of principal and interest on bonds issued under this subtitle shall perform promptly the act that is required.
Before a series of bonds is issued under this subtitle, the governing body of each member county that will be affected by the series shall advance to the district not more than $25,000.
From the first proceeds available from the sale of the bonds, the district shall repay the advances made by the member counties.
Unless the approval is required under this subtitle, a district is not required to obtain the approval of any entity before it issues bonds.
The provisions of §§ 19–205 and 19–206 of the Local Government Article do not apply to bonds issued under this subtitle.
Before a person may dig in or do any other construction on any way in a service area, the person shall obtain from the sanitary commission approval of the digging or construction.
To obtain approval, the person shall file with the sanitary commission a plan for the digging or construction that shows the depth and location of each:
Conduit;
Main;
Pipe;
Pole; and
Other structure.
If approval of the plans has been obtained from the sanitary commission, before a person may do any digging or construction different from the approved plans, the person shall:
Submit a new plan that shows the changes in the information required for the original plan; and
Obtain approval from the sanitary commission to do the digging or construction according to the new plan.
If any obstruction has been constructed in, on, or under a way in violation of this section and if the sanitary commission is required to move that obstruction to build or operate a project:
The district may move the obstruction and charge the cost of moving the obstruction to:
The person who constructed or installed the obstruction; or
Any successor in interest to that person;
The owner of the obstruction is not entitled to compensation under this subtitle for moving the obstruction; and
The district is not liable for damage done to the obstruction.
Before beginning work on the plumbing system on any property in a service area, a person shall:
Obtain from the district a permit to do the plumbing work;
Pay to the district the permit fee that the sanitary commission requires; and
Allow the sanitary commission to inspect the plumbing work.
Before connecting the plumbing system of any property to a water pipe or sewer pipe operated by the district, a person shall:
Obtain from the district a permit to make the connection; and
Comply with any additional conditions that the sanitary commission requires.
A person may not:
Interfere with an inspection made under authority of § 9-606 of this subtitle;
Violate § 9-661 of this subtitle by failing:
To maintain at least 1 sanitary toilet and wash basin as a part of any plumbing system that is used on any parcel after it is connected to a connector; or
To disconnect and close each cesspool, sink, drain, and privy on a parcel after it is connected to a connector;
Violate a water conservation order;
Construct or operate an independent system in violation of § 9-664 of this subtitle;
Fail to move an obstruction in violation of § 9-669 of this subtitle;
Fail, in violation of § 9-697(a) of this subtitle, to perform any act required of that person in paying principal or interest on bonds issued under this subtitle;
Use, for any purpose other than repaying in accordance with this subtitle, any funds that, under this subtitle, are required to be used to pay principal and interest on bonds;
Violate § 9-698 of this subtitle;
Operate, or make any connection to a fire hydrant, unless the act is done:
With written permission of the sanitary commission; or
By a fire department in discharge of its duties; or
Deface, damage, or obstruct a fire hydrant.
A person who violates this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $100 or imprisonment in jail not exceeding 30 days or both.