In this subtitle the following words have the meanings indicated, unless otherwise required by the context. “Bonds” means any bonds, notes, or other obligations of an issuer, the interest on which is exempt from federal taxation under the Code and the tax–exempt status of which is subject to the volume limitation established under § 146 of the Code. “Code” means the Internal Revenue Code of 1986, as amended, and the applicable regulations thereunder. “Community Development Administration” means that division of the Department of Housing and Community Development established under Title 4, Subtitle 2 of the Housing and Community Development Article. “County” means any county in the State of Maryland and the City of Baltimore. “Housing bonds” means any “qualified mortgage bonds” and bonds for any “qualified residential rental project” as those terms are defined in the Code. “Issuer” means any State issuer or local issuer. “Local issuer” means any county, municipality, or industrial development authority established under Title 12, Subtitle 1 of the Economic Development Article, or other agency with authority to issue bonds, other than a State issuer. “Maryland State ceiling” means the volume limitation established pursuant to § 146 of the Code on the aggregate dollar amount of bonds that may be issued by State and local issuers in any calendar year. “Minority business enterprise” means the minority business enterprises as defined in § 14–301 of the State Finance and Procurement Article. “Municipality” means any municipal corporation subject to the provisions of Article XI–E of the Maryland Constitution. “Secretary” means the Secretary of Commerce. “Secretary’s reserve” means the allocation of the Maryland State ceiling initially made under § 13–802(4) of this subtitle and augmented under § 13–805 of this subtitle. “State issuer” means the State of Maryland or any agency of the State of Maryland with authority to issue bonds.

The Maryland State ceiling shall be initially allocated for the period from the first day of each calendar year through September 30 of the same year, as follows: There is allocated to the counties a total of 50 percent of the Maryland State ceiling, consisting of 35 percent of the Maryland State ceiling designated initially for the issuance of housing bonds and 15 percent of the Maryland State ceiling designated for the issuance of bonds other than housing bonds. The allocation to each county for housing bonds shall equal 35 percent of the Maryland State ceiling multiplied by a fraction, the numerator of which is the population of the county and the denominator of which is the population of the State of Maryland. The allocation to each county for bonds other than housing bonds shall be composed of: A minimum allocation equal to 12 percent of the Maryland State ceiling multiplied by a fraction, the numerator of which is the population of the county and the denominator of which is the population of the State of Maryland; and A bonus allocation equal to 3 percent of the Maryland State ceiling multiplied by a fraction, the numerator of which shall be the average issuance of bonds other than housing bonds by the county for the immediately preceding 3 calendar years, and the denominator of which shall be the average issuance of bonds other than housing bonds by all counties for the immediately preceding 3 calendar years. Any county may redesignate any portion of its housing bond allocation for the issuance of any other bonds for which an allocation is required under the Code if such redesignation is approved by the mayor, county executive, or board of county commissioners. Any transfer by a county of any portion of its housing bond allocation under this subtitle shall be conditioned upon its use by the transferee for housing bonds. No portion of the allocation to each county for other than housing bonds may be used for the issuance of housing bonds. There is allocated to the Secretary for reallocation to municipalities 2.5 percent of the Maryland State ceiling. The Secretary shall process requests for allocations to municipalities in the order in which completed requests are received by the Secretary. A completed request from a municipality shall include: Evidence that the municipality has complied with the requirements for public notice, public hearing, and public approval established by the Code; A copy of a letter from bond counsel for such proposed issue to the effect that an allocation would be necessary in order to issue such bonds as tax exempt under the Code; and Any other information as the Secretary may require. Any reservation of allocation pursuant to this paragraph shall remain effective until the earlier to occur of: Receipt of notice to the Secretary from the municipality withdrawing its request for an allocation; The end of the 60th calendar day following the date on which the reservation was made without the bonds having been issued, except that the Secretary, for good cause shown, may extend the expiration date for any such reservation of allocation; and September 30 of the calendar year in which the reservation was issued without the bonds having been issued by such date. Upon the issuance of any bonds pursuant to a reservation of allocation which remains effective on the date of such issuance, the reservation shall automatically convert to an allocation under this section. There is allocated to the Community Development Administration 25 percent of the Maryland State ceiling for the issuance of housing bonds. There is allocated to the Secretary for the Secretary’s reserve 22.5 percent of the Maryland State ceiling for use in accordance with this paragraph. The Secretary may at any time make any allocation of a portion of the Secretary’s reserve to any State issuer or local issuer in any amount and in any order that the Secretary, in the Secretary’s sole discretion, may determine will advance one or more of the goals described in subparagraph (iii) of this paragraph. In making allocations from the Secretary’s reserve, preference shall be given to projects of State issuers that advance one or more of the goals described in subparagraph (iii) of this paragraph. The goals to be advanced by the issuance of bonds requiring allocations under this paragraph are: Increasing the supply, quality, and geographic distribution of housing for low–income persons; Expanding opportunities for homeownership; Creating significant job opportunities; Locating job–creating facilities in enterprise zones or areas of high unemployment, urban redevelopment, or planned unit development; Reducing, recycling, or treating solid or hazardous wastes; Assisting in the expansion or modernization of existing Maryland industry and the attraction of new and diverse firms to Maryland; Promoting the health, safety, education, or welfare of the citizens of Maryland; and Providing opportunities for minority business enterprise as borrower, lessee, or contractor or subcontractor for construction, services, or supplies. Any application to the Secretary for an allocation from the Secretary’s reserve shall describe how the project to be funded by the issuance of the bonds would advance one or more of the goals described in subparagraph (iii) of this paragraph and shall include such other information as the Secretary may require. In processing applications for allocations and in reserving allocations, the Secretary may give a preference for projects that demonstrate readiness to proceed. Upon the issuance of any bonds pursuant to a reservation of allocation under this paragraph which remains effective on the date of such issuance, such reservation shall automatically convert to an allocation pursuant to this section. Except in the case of allocations to municipalities under paragraph (2) of this section, the Secretary may require any local issuer, other than a county, to submit a request for an allocation of the Maryland State ceiling to or through a county.

Except as specifically provided in this section, an issuer receiving an allocation under this section may not transfer all or any portion of its allocation to any other issuer. Any county may, at any time in its sole discretion, reallocate all or any portion of its allocation to any local issuer (including any agency of the county) within its jurisdiction. Any county which has reallocated all or any portion of its allocation to a local issuer may reduce or further reallocate such reallocation after 30 days’ prior written notice to, or after receiving the consent of, such local issuer, unless such local issuer has used such reallocation for the issuance of bonds prior to the effective date of such reduction or further reallocation. Notwithstanding any applicable law, charter, ordinance, or other corporate document, any issuer receiving an allocation may transfer all or any portion of its allocation to a State issuer for the issuance of bonds. With the approval of the Secretary, any State issuer may transfer to any other issuer all or any portion of any allocation received by or transferred to it for any purpose. However, the Secretary may place any conditions on any such transfer as the Secretary deems appropriate. Any housing bond allocation transferred to the Community Development Administration by a local issuer may be transferred to any other issuer only with the approval of the Secretary and the local issuer that transferred the allocation to the Community Development Administration.

On September 15 of each calendar year, each issuer shall submit a report, approved in writing by its bond counsel, to the Secretary containing the following information: The amount of the total allocation of the Maryland State ceiling allocated in that year to the issuer prior to September 15; The amount and type of bonds issued in that year pursuant to the total allocation to the issuer in that year; The amount and type of bonds not issued, but anticipated to be issued on or before September 30 of that year, pursuant to the total allocation to the issuer in that year; and Any other information that the Secretary may request. Each issuer shall file with the Secretary a copy of each executed information report required by § 149(e)(2) of the Code to be filed with the federal Internal Revenue Service. Each such information report shall be filed by the earlier of 10 business days following the date of the issuance of the bonds or December 30 of the calendar year in which the bonds are issued. The Secretary may grant an extension of time for the filing of any such information report. Any bonds for which such executed information report is not filed with the Secretary in accordance with this subsection shall be deemed not to have received an allocation of the Maryland State ceiling. Each issuer shall provide the Secretary with such additional reports and other information regarding its allocation of the Maryland State ceiling and the use thereof as the Secretary may request.

All allocations of the Maryland State ceiling previously made during any calendar year shall automatically revert to the Secretary’s reserve on October 1 of such calendar year except with respect to allocations for which: Bonds have been issued; With the approval of the issuer, a preliminary official statement has been distributed by the underwriters in connection with the public offering of any bonds; or The issuer has transferred its allocation to a State issuer under § 13-803(c) of this subtitle. All allocations of the Maryland State ceiling for bonds to be issued in a public offering which did not revert to the Secretary’s reserve on October 1 because of subsection (a)(2) of this section shall revert to the Secretary’s reserve on November 15 of the same year if the bonds are not issued on or before November 14 of such year. The unused balance of the initial allocation to the Community Development Administration under § 13-802(3) of this subtitle shall be reallocated from the Secretary’s reserve to the Community Development Administration. All other allocations that have reverted to the Secretary’s reserve shall be reallocated as provided in § 13-802(4) of this subtitle. The Secretary may also give priority in processing and granting reservations of allocation from the Secretary’s reserve to the order in which requests for reallocation are received. No reallocation of the Secretary’s reserve as provided in § 13-802(4) of this subtitle may be made until notice as to the availability and amount of funds has been given to each county executive of a charter county, the Mayor and City Council of Baltimore, the Chairman of the County Council of Wicomico County, and, for all other counties, the president or the chairman of the county commissioners. The failure of any such notice being given as required by this paragraph may not adversely affect the validity of any allocation made by the Secretary under this subtitle or of any bonds issued pursuant to this subtitle. Each request for reallocation shall be accompanied by such information as the Secretary may require. Each reservation of allocation made by the Secretary on or after October 1 of any year shall expire on the date specified in the reservation. An issuer which has received an allocation from the Maryland State ceiling prior to October 1 of any year may not carry forward such allocation to any later year. All requests for a carry-forward allocation shall be submitted to the Secretary with such justifications and other information as the Secretary may require. The Secretary may provide for carry-forward allocations to the extent permitted by the Code.

The recipients of the proceeds of bonds shall make best efforts to use minority business enterprises in the construction of projects and the provision of services and supplies financed with such proceeds. State and local issuers shall monitor compliance with this requirement. The Secretary may provide guidance in connection with the efforts of such recipients to use minority business enterprises. Such recipients shall provide any information on their efforts to the issuer or to the Secretary that the issuer or the Secretary may request. Any failure to comply with the provisions of this subtitle does not in any way affect the validity of any bonds issued pursuant to an allocation from the Maryland State ceiling under this subtitle or the tax-exempt status of any such bonds under the Code, including the tax-exempt status of interest on such bonds under the Code. Any failure to comply with the provisions of this subtitle may be taken into consideration by the Secretary in making allocations from the Secretary’s reserve under §§ 13-802(4) and 13-805(d) of this subtitle.

The Secretary may make any and all allocations, apportionments, determinations, and findings required or permitted by this subtitle. Any allocations, apportionments, determinations, and findings of the Secretary shall be made in the Secretary’s sole and absolute discretion, subject to the provisions of this subtitle, shall be conclusive, and are not subject to review or approval under either the Maryland Administrative Procedure Act or any other law of the State of Maryland or by any agency or political subdivision of the State of Maryland. At the request of any issuer or its bond counsel made in connection with the issuance of any bonds, and in order to show compliance with the requirements of the Code, the Secretary or such person as the Secretary shall designate by written order may issue such certifications as may be reasonably required in order to establish the existence of a valid allocation for the proposed bond issuance and to establish that the Maryland State ceiling has not been exceeded, and the Secretary or such person designated by the Secretary in accordance with this subsection shall be the State official designated by State law for the purpose of certifying in connection with the information report required by § 149 of the Code that the bonds included in an issue meet the requirements of § 146 of the Code. The actual dollar amount of all allocations shall be determined by the Secretary. Allocations to issuers of the Maryland State ceiling under § 13-802 of this subtitle shall be based on the most recent census estimate of the resident populations of the State of Maryland and the counties released by the U.S. Bureau of the Census before January 1 of the year in which the allocations are made, as determined by the Secretary.