# Local Government (GLG)

## Title 1. Definitions; General Provisions

### Subtitle 1. Definitions

#### Section 1-101

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

(b)

  (1) "Charter county" means a county that has adopted charter home rule under Article XI-A of the Maryland Constitution.

  (2) "Charter county" does not include Baltimore City.

(c) "Code county" means a county that has adopted code home rule under Article XI-F of the Maryland Constitution.

(d) "Commission county" means a county that has not adopted charter or code home rule.

(e) "County" means a county of the State or Baltimore City.

(f) "Governing body" means:

  (1) for Baltimore City, the Mayor and City Council of Baltimore City;

  (2) for a charter county:

    (i) that does not have an elected chief executive officer, the county council; or

    (ii) that has an elected chief executive officer, the county council or the county council and the county executive, as provided by the county charter;

  (3) for a code county, the county commissioners;

  (4) for a commission county, the county commissioners; and

  (5) for a municipality, the body provided under the municipal charter.

(g) "Municipality" means a municipality that is organized under Article XI-E of the Maryland Constitution.

(h) "Person" means an individual, receiver, trustee, guardian, personal representative, fiduciary, representative of any kind, partnership, firm, association, corporation, or other entity.

(i)

  (1) Except as provided in paragraph (2) of this subsection, "state" means:

    (i) a state, possession, territory, or commonwealth of the United States; or

    (ii) the District of Columbia.

  (2) When capitalized, "State" means Maryland.

(j) "Tax collector" means the person or governmental unit responsible for collecting a tax.

(k) "Uniformed services" has the meaning stated in Sec. 9-901 of the State Government Article.

(l) "Veteran" has the meaning stated in Sec. 9-901 of the State Government Article.

### Subtitle 2

#### Section 1-201

(a) This section does not apply to:

  (1) an elected official;

  (2) the head of a unit of a county or municipality who reports directly to:

    (i) the chief administrative officer of the county or municipality;

    (ii) an elected executive; or

    (iii) the governing body of the county or municipality; or

  (3) the chief administrative officer of the county or municipality.

(b)

  (1) Except as provided in paragraph (2) of this subsection, a county or municipality may not require an employee to reside in the State, county, or municipality or within a specified distance of the State, county, or municipality as a condition of employment.

  (2) A county or municipality may require an at-will supervisory employee to reside in the State, county, or municipality or within a specified distance of the State, county, or municipality as a condition of employment if the at-will supervisory employee reports directly to the head of a unit of the county or municipality.

  (3) Subject to subsection (c) of this section, when making employment, promotion, demotion, layoff, and discharge decisions, a county or municipality may not discriminate based on an individual's place of residence.

(c) A county or municipality may grant a resident of the State, county, or municipality additional points or credits in employment or promotion decisions if the points or credits are provided in accordance with a merit system established by the county or municipality by local law or ordinance.

(d) An agency created under State law that provides governmental services to more than one county or municipality may not require an employee, as a condition of employment, to reside in the State or a county or municipality or within a specified distance of the State, a county, or a municipality for which the agency provides governmental services.

#### Section 1-202

(a) This section applies to the following governmental entities:

  (1) counties;

  (2) municipalities;

  (3) special taxing districts; and

  (4) regional governmental entities created by State law that provide services in more than one county.

(b) A governmental entity may not issue an identification card on which an employee's Social Security number is visible.

#### Section 1-203

(a) This section applies to the following governmental entities:

  (1) counties;

  (2) municipalities;

  (3) bicounty agencies;

  (4) county boards of education;

  (5) public corporations;

  (6) special taxing districts; and

  (7) other political subdivisions of the State.

(b) Each governmental entity shall give its employees who return from service in the uniformed services the same reemployment rights as provided for State employees under Title 2, Subtitle 7 of the State Personnel and Pensions Article.

#### Section 1-204

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Eligible spouse" has the meaning stated in Sec. 7-207 of the State Personnel and Pensions Article.

  (3) "Eligible veteran" has the meaning stated in Sec. 7-207 of the State Personnel and Pensions Article.

(b)

  (1) If a county or municipality uses a selection test for the hiring or appointment of employees, the county or municipality may adopt a local law that allows for the application of a credit of 10 points, or its equivalent, on a selection test for:

    (i) an eligible spouse;

    (ii) an eligible veteran;

    (iii) the spouse of an eligible veteran who has a service-connected disability; or

    (iv) the surviving spouse of a deceased eligible veteran.

  (2) A local law adopted under paragraph (1) of this subsection:

    (i) may allow for the application of a credit of two additional points, or its equivalent, on any selection test for a former prisoner of war; and

    (ii) if necessary, shall clarify the application of any special credit applied under Sec. 1-205 of this subtitle.

(c) The following applicants are ineligible for a credit under this subsection:

  (1) a current employee of a county or municipality; and

  (2) an eligible veteran who is convicted of a crime after being discharged from or completing service in the uniformed services.

#### Section 1-205

(a) If a municipality, county, or other political subdivision of the State makes appointments to government positions under a civil service or merit system law or ordinance, the unit that provides eligibility lists for appointments shall adopt rules or regulations to grant special credit to honorably discharged veterans who have been residents of the State for at least 5 years immediately preceding the date on which the veteran takes a merit system examination.

(b)

  (1) The unit may determine the nature and extent of the special credit granted to veterans.

  (2) The unit may grant a greater credit to veterans with a disability than to veterans who do not have a disability.

(c) The credit granted to a veteran under this section may be extended to:

  (1) the spouse of a veteran if the veteran is unable to qualify for merit system appointment because of a disability; and

  (2) the unmarried surviving spouse of a deceased veteran.

(d)

  (1) In this subsection, "health emergency" includes:

    (i) a national emergency declared by the President of the United States under the National Emergencies Act;

    (ii) an emergency or major disaster declared by the President of the United States under the Robert T. Stafford Disaster Relief and Emergency Assistance Act;

    (iii) a public health emergency declared by the Secretary of Health and Human Services under 42 U.S.C. Sec. 247d; and

    (iv) a catastrophic health emergency declared by the Governor under Sec. 14-3A-02 of the Public Safety Article.

  (2) The unit may exempt war or health emergency veterans under the age of 55 years from any age limitation or requirement.

#### Section 1-206

(a)

  (1) Subject to paragraph (2) of this subsection, a county or municipality may:

    (i) pay the wage of an employee by direct deposit as provided in subsection (b) of this section; and

    (ii) require an employee to receive the payment of wages by direct deposit as a condition of employment.

  (2) A county or municipality may not require the payment of wages by direct deposit for an employee:

    (i) who was hired before October 1, 2011, unless the county or municipality before October 1, 2011, required, by local law, regulation, or collective bargaining agreement, the payment of wages by direct deposit;

    (ii) whose employment is not conditioned on the employee receiving the payment of wages by direct deposit; or

    (iii)

      (1) who does not have a personal bank account; and

      (2) who informs the employee's employer that the employee wishes to opt out of direct deposit.

  (3) If a county or municipality elects to pay wages by direct deposit, an employee who is not required to receive the payment of wages by direct deposit may elect to receive the payment of wages by direct deposit in accordance with subsection (c) of this section.

(b) If a county or municipality elects to pay the wages of its employees by direct deposit, the county or municipality shall:

  (1) provide an employee who is required or elects to receive the payment of wages by direct deposit with an electronic fund transfer authorization form;

  (2) deposit the wage of an employee into a personal bank account selected by the employee on the electronic fund transfer authorization form; and

  (3) each time the county or municipality pays the wage of an employee by direct deposit, provide the employee with a direct deposit statement that includes:

    (i) the total amount of the wage;

    (ii) any amount deducted from the wage; and

    (iii) the amount of the wage directly deposited into the personal bank account selected by the employee.

(c)

  (1) An employee who is required or elects to receive the payment of wages by direct deposit shall:

    (i) complete and submit to the county or municipality the electronic fund transfer authorization form provided to the employee under subsection (b) of this section; and

    (ii) select a personal bank account for the direct deposit of the employee's wages that is at a financial institution that participates in the automated clearinghouse network.

  (2) Subject to paragraph (1)(ii) of this subsection, an employee may change the personal bank account or the financial institution designated on an electronic fund transfer authorization form by completing and submitting to the county or municipality a new electronic fund transfer authorization form.

#### Section 1-207

(a) In this section, "telework" means to work at a location other than a traditional office setting or an employee's usual and customary work site, including:

  (1) the employee's home;

  (2) a satellite office; and

  (3) a telework center.

(b) This section applies to:

  (1) all employees of a governmental entity of a county or a municipality; and

  (2) all governmental entities of a county or a municipality.

(c) Each governing body, or the governing body's designee, shall:

  (1) establish a countywide or municipality-wide telework program; and

  (2) adopt a countywide or municipality-wide telework policy and telework guidelines.

(d)

  (1) The head of a governmental entity of a county or municipality may designate the positions for which an employee would be eligible to telework.

  (2) Each governmental entity of a county or municipality, in its discretion, may maximize the number of eligible employees participating in a countywide or municipality-wide telework program established under subsection (c) of this section.

#### Section 1-208

(a) This section applies to all employees of a governmental unit of a county or a municipality in the State.

(b) Subject to subsections (c) through (e) of this section, each governmental unit may provide disaster service leave with pay to employees subject to this section.

(c) On request, an employee subject to this section may be entitled to disaster service leave with pay if:

  (1)

    (i) the employee is certified by the American Red Cross as a disaster service volunteer; and

    (ii) the American Red Cross requests the services of the employee during a disaster that is designated at Level II or above in the regulations and procedures of the National Office of the American Red Cross; or

  (2) the employee is a member of:

    (i) the Civil Air Patrol;

    (ii) the United States Coast Guard Auxiliary;

    (iii) Maryland Voluntary Organizations Active in Disaster;

    (iv) a volunteer emergency medical services department;

    (v) a volunteer fire department;

    (vi) a volunteer rescue company or volunteer rescue squad; or

    (vii) a Community Emergency Response Team.

(d) An employee may use up to 30 days of disaster service leave in any 12-month period only after obtaining approval from the employee's governmental unit.

(e) During a prolonged or recurrent disaster, the employee's governmental unit may:

  (1) waive the requirements under subsections (c) and (d) of this section that an employee must request and obtain approval before the employee may use disaster service leave, if waiving the requirement would be in the best interest of the citizens of the county or municipality; and

  (2) increase the number of days of disaster service leave under subsection (d) of this section that an employee may use, if an increase in leave would be in the best interest of the citizens of the county or municipality.

#### Section 1-209

(a) In this section, "uniformed services" has the meaning stated in 38 U.S.C. Sec. 4303 and 20 C.F.R. Sec. 1002.5(o).

(b) This section applies to all employees of a governmental unit of a county or a municipality in the State.

(c) Each governmental unit may provide leave with pay:

  (1) for jury service;

  (2) to attend employee organization events approved for this purpose by the head of the governmental unit;

  (3) for up to 30 days for uniformed services training or active uniformed services duty in a reserve unit of the armed forces or in the organized militia;

  (4) unless the employee is a party to the action or a paid witness, to appear in compliance with a subpoena:

    (i) in court;

    (ii) before a grand jury;

    (iii) before an administrative unit; or

    (iv) for a deposition;

  (5) for administrative leave for the purpose of immediately removing an employee from the work site, if the employee:

    (i) poses a threat to self, another individual, or county or municipal property; or

    (ii) is incapable of properly performing the employee's duties because of extraordinary circumstances; and

  (6) for any other paid leave the head of a governmental unit considers necessary.

#### Section 1-210

### Subtitle 3. Political Activities of Employees

#### Section 1-301

This subtitle applies to the following governmental entities:

(1) counties;

(2) municipalities;

(3) bicounty or multicounty agencies;

(4) county boards of education;

(5) public authorities;

(6) special taxing districts; and

(7) other public entities whose employees are not covered by Sec. 2-304 of the State Personnel and Pensions Article.

#### Section 1-302

Employment by a governmental entity does not affect any right or obligation of a citizen under the United States Constitution, the Maryland Constitution, or federal or State law. 

#### Section 1-303

Except as otherwise provided in this subtitle, an employee of a governmental entity:

(1) may freely participate in any political activity and express any political opinion; and

(2) may not be required to provide a political service.

#### Section 1-304

An employee of a governmental entity may not:

(1) engage in political activity while on the job during working hours; or

(2) advocate the overthrow of the government by unconstitutional or violent means.

#### Section 1-305

A person who violates this subtitle is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 6 months or a fine not exceeding $3,000 or both.

#### Section 1-306

Notwithstanding any other law of the State effective on or before June 30, 1973, or any local law, the restrictions imposed by this subtitle are the only restrictions on the political activities of an employee of a governmental entity, except for restrictions:

(1) imposed on an employee of a local board of elections by Sec. 2-301 of the Election Law Article; or

(2) provided in or authorized by the Montgomery County Charter and imposed on:

  (i) an officer or employee of the Montgomery County government who serves in a quasi-judicial capacity; or

  (ii) a member of a Montgomery County board or commission who serves in a quasi-judicial capacity.

### Subtitle 4. Purchasing and Sales

#### Section 1-401

(a) In this section, "computer software program" means a software program used to:

  (1) access data in a computer system; or

  (2) implement a process using data in a computer system.

(b) This section does not apply to a computer software program subject to Title 10, Subtitle 9 of the State Government Article.

(c)

  (1) A county or municipality may sell, lease, or license to the public, or enter into a contract concerning, a computer software program, including any associated patent, trademark, or copyright, that is produced by or for the county or municipality in the normal course of its operations.

  (2) A county or municipality may adopt a price structure for a computer software program based on any factors that the county or municipality considers relevant, including:

    (i) the cost of producing, reproducing, and delivering the computer software program;

    (ii) overhead and labor costs; and

    (iii) the fair market value of the computer software program.

#### Section 1-402

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Nonresident bidder" means a bidder whose principal office is outside the State.

  (3) "Preference" includes:

    (i) a percentage preference;

    (ii) an employee residency requirement; or

    (iii) any other provision that favors a resident over a nonresident.

  (4) "Resident bidder" means a bidder whose principal office is in the State.

(b) When a political subdivision or an instrumentality of government in the State uses competitive bidding to award a procurement contract, the political subdivision or instrumentality may give a preference to the resident bidder who submits the lowest responsive bid of any resident bidder if:

  (1) the resident bidder is a responsible bidder;

  (2) a responsible nonresident bidder submits the lowest responsive bid of all bidders; and

  (3) the state in which the nonresident bidder's principal office is located gives a preference to its residents.

(c) A preference under this section shall be identical to the preference that the state in which the nonresident bidder's principal office is located gives to its residents.

#### Section 1-403

(a) An officer or agent of a county or municipality who is charged with the construction, improvement, or maintenance of any building or work, or the management of a public institution, may not enter into any contract that binds or purports to bind the county or municipality to pay money not previously appropriated and remaining unexpended for the purpose of the contract.

(b) If an officer or agent of a county or municipality willfully or knowingly enters into or participates in entering into a contract prohibited under subsection (a) of this section:

  (1) the officer or agent is personally liable for the contract; and

  (2) the county or municipality is not liable for the contract.

#### Section 1-404

(a) This section applies to all counties and municipalities.

(b) A county or municipality that operates a minority business enterprise utilization program for county or municipal procurements and has a process for the certification of minority business enterprises for eligibility in that program shall accept as certified for the program any person that has been certified as a minority business enterprise by the State certification agency designated under Sec. 14-303(b) of the State Finance and Procurement Article.

### Subtitle 5. Regulation of Lead Paint Risk Reduction in Residential Property for Rent or Lease

#### Section 1-501

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

(b) "Affected property" has the meaning stated in Sec. 6-801 of the Environment Article.

(c)

  (1) "Residential property" means a building or a portion of a building that provides complete living facilities, including facilities for cooking, sanitation, and sleeping.

  (2) "Residential property" includes:

    (i) a single-family unit in a multifamily dwelling; and

    (ii) a "rental dwelling unit" as defined under Sec. 6-801 of the Environment Article.

#### Section 1-502

This subtitle applies to the regulation in any manner, by a county or municipality, of residential property that is rented or leased, including regulation by the issuance or renewal of:

(1) a license or registration to authorize the owner of residential property to engage in the business of renting or leasing the residential property;

(2) a license or registration to authorize residential property to be rented or leased; or

(3) a certification that residential property that is rented or leased is in compliance with a local housing, livability, or property maintenance code.

#### Section 1-503

A county or municipality may not authorize or certify residential property to be rented or leased unless the owner of the property:

(1) states in writing to the county or municipality under penalty of perjury:

  (i) that the residential property is not an affected property; or

  (ii) that the residential property is an affected property that has been registered and for which the registration has been renewed in accordance with Sec.Sec. 6-811 and 6-812 of the Environment Article; and

(2) if the property is an affected property, provides the inspection certificate number for the inspection conducted for the current tenancy as required under Sec. 6-815(c), Sec. 6-817(b), or Sec. 6-819(e) of the Environment Article.

#### Section 1-504

In addition to reporting, as required under Sec. 6-848.2 of the Environment Article, any known noncompliance of an affected property with the provisions of Title 6, Subtitle 8 of the Environment Article, a county or municipality may forward to the Department of the Environment any information obtained under this subtitle regarding residential property.

### Subtitle 6. Public Recreation and Parks

#### Section 1-601

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

(b) "Parks and recreation unit" means a governmental unit designated or created under Sec. 1-604 of this subtitle to administer a program.

(c) "Program" means a program of public recreation and parks.

#### Section 1-602

This subtitle does not apply to Charles County.

#### Section 1-603

This subtitle is additional and supplemental to any law governing a program.

#### Section 1-604

The governing body of a county or municipality may:

(1) establish and maintain a program for the benefit of the residents of the county or municipality; and

(2) create or designate a parks and recreation unit to administer the program.

#### Section 1-605

(a) A parks and recreation unit may:

  (1) maintain a park or recreational facility; and

  (2) conduct recreation and park activities.

(b) The parks and recreation unit may employ an administrative officer and other personnel as necessary and as authorized by the governing body of the county or municipality.

(c) The parks and recreation unit may organize volunteer groups or councils to aid in the implementation of the program.

#### Section 1-606

(a)

  (1) If the governing body of a county or municipality determines that a board or commission shall provide and conduct a program, by local law, ordinance, or resolution, the governing body shall create a board or commission.

  (2) The board or commission shall have the powers granted to it by the governing body.

(b) In accordance with subsection (c) of this section, the governing body of the county or municipality shall determine the membership of the board or commission and the terms of office and compensation of the members.

(c)

  (1) Except as provided in paragraph (3) of this subsection, a board or commission established by a county shall include:

    (i) one member of the county governing body; and

    (ii) one member or representative of the county board of education.

  (2) A member designated under paragraph (1) of this subsection:

    (i) shall serve a term of 1 year; and

    (ii) may be reappointed.

  (3) In Frederick County:

    (i) the county commissioner on the board or commission serves for a term coextensive with the member's term of elected office; and

    (ii) a member of the county board of education is a member of the board or commission.

#### Section 1-607

(a) The governing body of a county or municipality may establish and maintain any property owned or leased by the county or municipality for use as a park or recreational facility.

(b) In accordance with applicable law, and subject to subsection (c) of this section, the governing body of a county or municipality may acquire or lease any property inside or outside its corporate limits for use as a park or recreational facility.

(c) This subtitle does not grant or restrict the power of condemnation.

#### Section 1-608

The governing body of a county or municipality may appropriate money for the operation, equipment, and maintenance of a park or recreational facility.

#### Section 1-609

In the manner provided by law for the issuance of bonds for other purposes, the governing body of a county or municipality may issue bonds to:

(1) acquire property for use as a park or recreational facility;

(2) acquire the equipment for a park or recreational facility;

(3) redesign, improve, construct, develop, or extend a park or recreational facility; or

(4) provide for any appropriate capital item in cooperation with other governmental units under Sec. 1-610 of this subtitle.

#### Section 1-610

The governing body of a county or municipality, by and through the parks and recreation unit or other designated unit, may join or cooperate with a federal, State, or other local governmental unit or community recreation council to acquire, lease, or maintain a park or recreational facility or provide or conduct a park or recreational activity.

#### Section 1-611

The governing body of a county or municipality, by and through the parks and recreation unit or other designated unit, may accept:

(1) a gift of property for use as a park or recreational facility; or

(2) other contributions for parks and recreation purposes.

### Subtitle 7. Limits on Competition; Franchises

#### Section 1-701

This subtitle does not apply to Baltimore City.

#### Section 1-702

(a) Sections 1-703 through 1-707 of this subtitle do not:

  (1) grant to a county or municipality additional authority in any substantive area beyond that granted under other public general law or public local law;

  (2) restrict a county or municipality from exercising authority granted under other public general law or public local law;

  (3) authorize a county or municipality to engage in an activity not authorized under other public general law or public local law; or

  (4) preempt or supersede the regulatory authority of a unit of State government.

(b)

  (1) This section applies to all counties, except:

    (i) Anne Arundel County;

    (ii) Baltimore City;

    (iii) Baltimore County;

    (iv) Cecil County;

    (v) Howard County;

    (vi) Prince George's County;

    (vii) Queen Anne's County; and

    (viii) Worcester County.

  (2) The provisions of Sec.Sec. 9-105 and 9-106 of this article apply to an act, an ordinance, or a resolution adopted by a commission county under this section.

  (3) A county may grant franchises as provided under existing public general law or public local law.

#### Section 1-703

(a) It is the policy of the State to authorize each county and municipality to displace or limit competition in the area of public transportation to:

  (1) provide adequate, economical, and efficient transportation services;

  (2) protect against excessive and inconsistent prices for transportation services;

  (3) conserve energy and reduce accidents, air pollution, congestion, and traffic hazards through public transportation;

  (4) encourage its use by contributing capital and operating funds so that transportation may be provided at the lowest cost; and

  (5) promote the general welfare by providing a comprehensive transportation system.

(b) Notwithstanding any anticompetitive effect, a county or municipality may:

  (1)

    (i) grant one or more franchises for transportation services on an exclusive or nonexclusive basis;

    (ii) impose franchise fees;

    (iii) establish rates applicable to the franchise; and

    (iv) adopt rules, regulations, and licensing requirements for the operation of the franchise; or

  (2) operate a public transportation system on an exclusive basis, including:

    (i) establishing rates for the public transportation system; and

    (ii) adopting rules and regulations for the operation of the public transportation system.

#### Section 1-704

(a) It is the policy of the State to authorize each county and municipality to displace or limit competition in the area of water and sewerage systems to:

  (1) assure delivery of adequate, economical, and efficient water and sewerage services;

  (2) avoid duplication of water and sewerage facilities;

  (3) control disease and provide for the public health and safety;

  (4) prevent environmental degradation;

  (5) protect natural resources;

  (6) use the public right-of-way efficiently; and

  (7) promote the general welfare by providing adequate water and sewerage systems.

(b)

  (1) Notwithstanding any anticompetitive effect, a county or municipality may:

    (i) grant one or more franchises or enter into contracts for water or sewerage systems on an exclusive or nonexclusive basis;

    (ii) impose franchise fees;

    (iii) establish charges and rates applicable to the franchise; and

    (iv) adopt rules, regulations, and licensing requirements for the operation of the franchise.

  (2) If another law grants a county or municipality the authority to operate water and sewerage systems, the county or municipality shall operate the systems without regard to any anticompetitive effect.

#### Section 1-705

(a) Notwithstanding any anticompetitive effect, it is the policy of the State to direct and authorize each county and municipality to exercise authority over waste collection and disposal.

(b) This section does not apply to waste that the generator:

  (1) directs to a specific facility for reclamation, recycling, or reuse; or

  (2) disposes of on its property.

#### Section 1-706

(a) It is the policy of the State to authorize each county and municipality to displace or limit competition in the awarding of concessions on, over, or under property owned or leased by the county or municipality and in the leasing or subleasing of property owned or leased by the county or municipality to:

  (1) use its assets properly for the best public purpose;

  (2) protect the public from unscrupulous business practices and excessive prices;

  (3) provide maximum accessibility to public property;

  (4) provide desirable or necessary governmental services at the lowest possible cost; and

  (5) promote the general welfare by using public property for the benefit of the residents of the county or municipality.

(b) Notwithstanding any anticompetitive effect, a county or municipality may:

  (1)

    (i) grant one or more franchises for any concession on, over, or under property owned or leased by the county or municipality on an exclusive or nonexclusive basis;

    (ii) control prices and rates for the franchise; and

    (iii) adopt rules and regulations for the operation of the franchise; and

  (2) lease or sublease publicly owned or leased real property on terms that the county or municipality determines.

#### Section 1-707

(a) This section applies only to code counties and municipalities.

(b) It is the policy of the State to authorize each code county and municipality to displace or limit competition in the area of port regulation to:

  (1) provide for safe harbors free of congestion and navigational hazards;

  (2) protect marine life and wildlife; and

  (3) prevent water pollution and erosion.

(c) Notwithstanding any anticompetitive effect, a code county or municipality may:

  (1) grant one or more franchises or enter into contracts for the placement or construction of structures in or on the waters of the county or municipality;

  (2) issue licenses for wharves and piers; or

  (3) issue permits for mooring piles, floating wharves, buoys, and anchors.

#### Section 1-708

(a)

  (1) Unless otherwise defined by local law, in this section, "cable television system" means a nonbroadcast facility that consists of a set of transmission paths and associated signal generation, reception, and central equipment, under common ownership and control, that distributes or is designed to distribute to subscribers the signals of one or more television broadcast stations.

  (2) "Cable television system" does not include a facility that:

    (i) serves 49 or fewer subscribers; or

    (ii) serves only subscribers in one or more multiple dwelling units under common ownership, control, or management.

(b) This section does not authorize the governing body of a county to enact laws or regulations for a municipality.

(c) The governing body of a county or municipality may:

  (1) grant a franchise for a cable television system that uses a public right-of-way;

  (2) impose franchise fees;

  (3) establish rates applicable to a franchise; and

  (4) adopt rules and regulations for the operation of a franchise.

#### Section 1-709

(a) Notwithstanding any anticompetitive effect, the County Commissioners of Somerset County may grant an exclusive franchise to a ferry company to operate between Somerset County and Reedville, Virginia.

(b) Before granting a franchise, the County Commissioners of Somerset County shall review the proposed business and financial plan of the ferry company.

(c) The County Commissioners of Somerset County may adopt regulations to carry out this section that are consistent with any regulations adopted by the Public Service Commission that relate to ferry companies.

(d) If the ferry company does not exercise the franchise within 18 months after it is granted, the franchise becomes void.

(e) A ferry company may not conduct gaming activities on a ferry that it operates under a franchise granted under this section.

### Subtitle 8. Participation in Federal Projects; Federal Aid

#### Section 1-801

(a)

  (1) In this section, "federal project" means any federal work, improvement, or project.

  (2) "Federal project" includes:

    (i) dredging projects;

    (ii) flood control projects; and

    (iii) other federal river, harbor, and navigation works and improvements.

(b) This section applies to the following governmental entities:

  (1) counties;

  (2) municipalities;

  (3) public corporations;

  (4) special districts; and

  (5) any other political subdivisions.

(c) A governmental entity may:

  (1) assist the United States or a federal agency in constructing, financing, maintaining, using, or operating a federal project, including agreeing to terms of local cooperation required by the United States or a federal agency;

  (2) enter into a contract with the United States or a federal agency, in the form required by the United States or federal agency, obligating the governmental entity to:

    (i) construct, finance, maintain, use, or operate a federal project; or

    (ii) arrange, contract for, or supervise the construction, financing, maintenance, use, or operation of a federal project;

  (3) appropriate or obligate money and obtain private loans or financing to pay for its share of the cost of a federal project;

  (4) accept and use federal grants or loans to assist in the construction, financing, maintenance, use, or operation of a federal project;

  (5) purchase or, in accordance with Title 12 of the Real Property Article, condemn land and interests in land necessary for a federal project and transfer any interest in that land to the United States or a federal agency; and

  (6) enter property and waters to conduct surveys, soundings, and examinations in furtherance of a federal project.

#### Section 1-802

For the purpose of constructing, financing, maintaining, using, or operating a watershed project, a county or municipality may enter into a contract, including an obligation of repayment under applicable federal public works and economic development programs under 42 U.S.C. Sec.Sec. 3161 and 3162, with:

(1) the United States or a federal agency;

(2) a public drainage association;

(3) a public watershed association; or

(4) any person or other governmental entity.

#### Section 1-803

(a)

  (1) Regardless of whether a county or municipality has established a housing authority under the Housing Authorities Law in Division II of the Housing and Community Development Article, the powers conferred by this section:

    (i) are in addition to all other powers of a county or municipality; and

    (ii) may be exercised directly by a county or municipality or as otherwise provided by the governing body of the county or municipality.

  (2) This section does not affect any powers conferred on a housing authority, county, or municipality by the Housing Authorities Law in Division II of the Housing and Community Development Article.

(b) A county or municipality may participate in federal lower-income housing assistance programs and for this purpose may:

  (1) enter into contracts with the United States or a federal agency;

  (2) accept and expend assistance payments related to existing, newly constructed, or substantially rehabilitated housing;

  (3) act as a public housing agency as defined in federal law; and

  (4) do all things necessary or convenient to participate in the program.

#### Section 1-804

(a) After consultation with the Department of Budget and Management, the Secretary of Planning shall adopt regulations that require a county or municipality to submit information, as required in this section, on federal aid, including grants, instructional contracts, loans, research contracts, and other assistance.

(b)

  (1) Every 6 months, a county or municipality shall submit a summary notice to the Department of Planning if, during the 6-month period that the notice covers, the county or municipality received an award of federal aid in the form of an instructional contract, an instructional grant, a research contract, or a research grant.

  (2) The summary notice shall state the amount of the award.

(c)

  (1) This subsection does not apply to an instructional contract, an instructional grant, a research contract, or a research grant.

  (2) Within 30 days after a county or municipality receives an award of federal aid, the county or municipality shall submit to the Department of Planning a summary notice that states:

    (i) the amount of the award; and

    (ii) if the award is conditioned on matching funds:

      (1) the amount of those funds;

      (2) the source of those funds; and

      (3) the period for which those funds are required.

### Subtitle 9. Cooperation Among Political Subdivisions

#### Section 1-901

The governing body of a county or a municipality may provide materials, services, or other assistance to another political subdivision for a public purpose and for mutual benefit.

#### Section 1-902

(a) This section applies to all counties except:

  (1) Anne Arundel County;

  (2) Baltimore City;

  (3) Baltimore County;

  (4) Howard County; and

  (5) Prince George's County.

(b) The governing body of a county may contract with another governmental entity for the joint or cooperative performance of any governmental function.

(c) The governing body of a county may:

  (1) accept any gift or grant from the federal or State government or any unit of federal or State government; and

  (2) use the gift or grant for any lawful purpose for which it was received.

#### Section 1-903

(a) On request of the Director of the Baltimore City Department of Public Works, the governing bodies of Anne Arundel County, Baltimore County, or Howard County shall restrict the use of water supplied by Baltimore City to any person or property located in the county:

  (1) to the same extent restrictions are imposed on the use of water by consumers in Baltimore City when there is a shortage of water; or

  (2) in limited areas when required due to deficiencies in the water distribution system serving the limited areas under conditions approved by the receiving county.

(b) Before the imposition of a water restriction in a limited area of Anne Arundel County, Baltimore County, or Howard County, the Director of the Baltimore City Department of Public Works shall determine that the unrestricted use of water in all other areas of the county will have no detrimental effect on the restricted use area.

(c) The governing bodies of Anne Arundel County, Baltimore County, and Howard County may pass any ordinance, resolution, rule, or regulation necessary to impose and enforce a water restriction under this subtitle and provide penalties for the violation of a restriction.

### Subtitle 10. Hospitals and Related Facilities

#### Section 1-1001

(a) A county or municipality may establish a hospital or other facility for the care of the sick by:

  (1) building or contracting for the use of a facility; or

  (2) joining with another county or municipality to establish a joint facility.

(b) A county or municipality may recover the expenses incurred by a hospital or another facility in caring for a patient who is not indigent:

  (1) from the patient, within 3 years after the patient is discharged from the facility; or

  (2) from the estate of the patient, if the patient dies in the facility.

#### Section 1-1002

A hospital, as defined in Sec. 19-301 of the Health - General Article, that is operated by a political subdivision may accept a valid credit card as payment for a bill.

#### Section 1-1005

In this part, "board" means a citizens nursing home board.

#### Section 1-1006

The county commissioners or county council of a county may establish a citizens nursing home board.

#### Section 1-1007

(a)

  (1)

    (i) Except as provided in subsection (d)(1) of this section, a board consists of 10 members.

    (ii) The county commissioners, the county council of the county, or, subject to the confirmation of the Frederick County Council, the County Executive of Frederick County shall appoint the initial members of the board for the following terms:

      (1) three members for 3 years;

      (2) three members for 2 years; and

      (3) three members for 1 year.

    (iii) The county commissioners, the county council, or, subject to the confirmation of the Frederick County Council, the County Executive of Frederick County shall appoint one of its members to be an ex officio member of the board.

  (2) Each member of the board shall be a resident of the county.

(b) Except as provided in subsections (c) and (d)(3) of this section, a successor member shall be elected by a majority vote of the board for:

  (1) a term of 3 years if a term expires; or

  (2) the rest of the term if a term is vacated.

(c) Subject to the confirmation of the Frederick County Council, the Chief Executive of Frederick County shall appoint a successor member for:

  (1) a term of 3 years if a term expires; or

  (2) the rest of the term if a term is vacated.

(d)

  (1) In St. Mary's County, the board consists of at least 10 but not more than 15 members.

  (2)

    (i) Subject to paragraph (1) of this subsection, the County Commissioners of St. Mary's County may create new positions on the board.

    (ii) The county commissioners shall set the term for each new position to:

      (1) 3 years or less; and

      (2) ensure balanced staggering of the expiration of the terms of all members.

  (3) The county commissioners shall appoint a successor member for:

    (i) a term of 3 years if a term expires; or

    (ii) the rest of the term if a term is vacated.

#### Section 1-1008

(a) The board shall elect a chair from among its members.

(b) The board shall determine the term of office of the chair.

#### Section 1-1009

(a) The board shall meet at least once a month to conduct its business.

(b) A member of the board serves without compensation.

#### Section 1-1010

(a) The board shall establish, maintain, and operate a nursing home or other facility or service for the care and treatment of aged, convalescent, and chronically ill individuals.

(b) The board has the following powers and duties:

  (1)

    (i) to accept gifts, legacies, bequests, or endowments for purposes of the board; and

    (ii) unless otherwise specified by the donor, in the discretion of the board, to spend both principal and income of a gift, legacy, bequest, or endowment for the purposes of the board;

  (2)

    (i) to acquire and hold property in the name of the county commissioners or county council of the county;

    (ii) to preserve and administer property acquired by the board; and

    (iii) to sell or otherwise dispose of property acquired by the board;

  (3) to provide adequate facilities and services for the care and treatment of aged, convalescent, and chronically ill individuals, including:

    (i) physical care;

    (ii) medical care;

    (iii) nursing care;

    (iv) recreational services;

    (v) rehabilitative services;

    (vi) special education; and

    (vii) dissemination of information relating to causes and prevention of chronic and debilitating illnesses;

  (4)

    (i) subject to item (ii) of this item, to charge fees for admission to and maintenance in a facility and for services provided; and

    (ii) to charge fees to indigent individuals in direct proportion to the individual's ability to pay;

  (5) to apply to the purposes of the board all money, assets, or property the board receives;

  (6) to adopt rules and regulations for the board's facilities and services;

  (7) to cooperate with and assist, as much as practicable, any unit of the State, the United States, any subdivision of either, or any person;

  (8) to hire a director of any facility or service and to provide for additional employees and the qualifications and wages of the employees;

  (9) to require any facility or service to maintain standards to qualify for a license as a hospital under Title 19, Subtitle 3, Part III of the Health - General Article; and

  (10) to integrate each of the board's facilities with those of the Secretary of Health.

#### Section 1-1011

The board shall adopt rules to govern its operations.

#### Section 1-1012

(a) As much as possible, the activities of the board shall be supported by the public, voluntary contributions, fees and charges, and payments from the State and federal government.

(b) To maintain an adequate level of medical and nursing care for aged, convalescent, and chronically ill individuals, the county commissioners or county council of a county may:

  (1) make annual appropriations to support the operations of the board; and

  (2) make appropriations or borrow funds for land acquisition and capital improvements and issue bonds, notes, or other evidence of indebtedness.

#### Section 1-1013

The board shall report annually to the county commissioners or county council of the county on the activities of the board during the preceding year, including any recommendations or requests the board considers appropriate to achieve the objectives and purposes of this part.

#### Section 1-1014

In addition to the authority provided in this part, the governing body of Frederick County may establish, maintain, and operate a nursing home or other facility or service for the care and treatment of aged, convalescent, and chronically ill individuals in Frederick County.

#### Section 1-1017

(a)

  (1) The county commissioners or county council of a county may cooperate, consistent with this subtitle, for the construction or reconstruction of hospitals or related facilities by contributing up to one-third of the cost of any hospital or related facility.

  (2) To pay the county contribution under this subsection, the county commissioners or county council may:

    (i) use general fund revenues of the county; or

    (ii) within the limits of any restriction on the borrowing power of the county, issue bonds, notes, or other evidence of indebtedness, pledging the full faith and credit of the county to the payment of principal of and interest on the bonds, notes, or evidence of indebtedness.

  (3) For the purposes of this subsection, the Secretary of Health, as the sole unit to represent the State, shall cooperate with the county.

(b)

  (1) The County Commissioners of Kent County may cooperate, consistent with this subtitle, for the construction of a nursing home or related facilities by contributing up to one-third of the cost of the nursing home or related facilities.

  (2) A nursing home constructed under this subsection shall have at least 25 beds.

  (3) To pay the county contribution under this subsection, the county commissioners may:

    (i) use general fund revenues of the county; or

    (ii) within the limits of any restriction on the borrowing power of the county, issue bonds, notes, or other evidence of indebtedness, pledging the full faith and credit of the county to the payment of principal of and interest on the bonds, notes, or evidence of indebtedness.

  (4) For the purposes of this subsection, the Secretary of Health, as the sole unit to represent the State, shall cooperate with the county commissioners.

(c)

  (1) The County Commissioners of Somerset County shall cooperate, consistent with this subtitle, for the construction of a nursing home hospital or related facilities by contributing up to $200,000 of the cost of any nursing home hospital or related facilities.

  (2) A nursing home hospital constructed under this subsection shall:

    (i) have 60 beds;

    (ii) be located in the town of Crisfield, on the same grounds as McCready Hospital;

    (iii) have a corridor connecting it to McCready Hospital; and

    (iv) be known as the Alice Byrd Tawes Nursing Home.

  (3) To pay the county contribution under this subsection, the county commissioners may:

    (i) use general fund revenues of the county; or

    (ii) within the limits of any restriction on the borrowing power of the county, issue bonds, notes, or other evidence of indebtedness, pledging the full faith and credit of the county to the payment of principal of and interest on the bonds, notes, or evidence of indebtedness.

### Subtitle 11. Clean Energy Loan Programs

#### Section 1-1101

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

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

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

(d) "Commercial property" means real property that is:

  (1) not designed principally or intended for human habitation; or

  (2) used for human habitation and is improved by more than four single family dwelling units.

(e)

  (1) "Environmental remediation project" means a project that is intended to remove environmental or health hazards.

  (2) "Environmental remediation project" includes:

    (i) a project that promotes indoor air and water quality;

    (ii) asbestos remediation;

    (iii) lead paint removal; and

    (iv) mold remediation.

(f) "Program" means a clean energy loan program established under this subtitle.

(g)

  (1) "Resiliency project" means a project that is intended to increase the capacity of a property to withstand natural disasters and the effects of climate change.

  (2) "Resiliency project" includes:

    (i) a flood mitigation project;

    (ii) a stormwater management project;

    (iii) a project to increase fire or wind resistance;

    (iv) a project to increase the capacity of a natural system;

    (v) an inundation adaptation project;

    (vi) alternative vehicle charging infrastructure; and

    (vii) energy storage.

#### Section 1-1102

A county or municipality may enact an ordinance or a resolution to establish a clean energy loan program.

#### Section 1-1103

(a) The purpose of a program is to provide loans to residential property owners, including low income residential property owners, and commercial property owners to finance or refinance:

  (1) energy and water efficiency projects;

  (2) environmental remediation projects;

  (3) renewable energy projects; and

  (4) resiliency projects.

(b) A private lender may provide capital for a loan provided to a commercial property owner under the program.

#### Section 1-1104

(a) An ordinance or resolution enacted under Sec. 1-1102 of this subtitle shall provide for:

  (1) eligibility requirements for participation in the program, including eligibility requirements for:

    (i) energy and water efficiency projects, renewable energy devices, environmental remediation projects, and resiliency projects; and

    (ii) property and property owners; and

  (2) loan terms and conditions, including a provision that requires that a loan be repaid over a term not to exceed the useful life of the project as determined by the program.

(b) Eligibility requirements under subsection (a) of this section shall include a requirement that the county or municipality give due regard to the property owner's ability to repay a loan provided under the program, in a manner substantially similar to that required for a mortgage loan under Sec.Sec. 12-127, 12-311, 12-409.1, 12-925, and 12-1029 of the Commercial Law Article.

#### Section 1-1105

(a) Subject to subsection (c) of this section, a program shall require a property owner to repay a loan provided under the program through a surcharge on the owner's property tax bill.

(b) Except for a surcharge authorized under subsection (c) of this section, a county or municipality may not set a surcharge greater than an amount that allows the county or municipality to recover the costs associated with:

  (1) issuing bonds to finance the loan; and

  (2) administering the program.

(c) With the express consent of any holder of a mortgage or deed of trust on a commercial property that is to be financed through a loan to the commercial property owner under the program:

  (1) a county or municipality may collect loan payments owed to a private lender or to the county or the municipality for a loan to a commercial property owner, and costs associated with administering the program, through a surcharge on the property owner's property tax bill;

  (2) an unpaid surcharge under this subsection shall be, until paid, a lien on the real property on which it is imposed from the date it becomes payable; and

  (3) the provisions of Title 14, Subtitle 8 of the Tax - Property Article that apply to a tax lien shall also apply to a lien created under this subsection.

(d) A person who acquires property subject to a surcharge under this section assumes the obligation to pay the surcharge.

#### Section 1-1106

(a) A county or municipality may issue bonds to finance loans made through a program.

(b) To issue a bond, a county or municipality shall adopt an ordinance or a resolution that specifies the maximum principal amount of the bond.

(c) In the ordinance or resolution, the county or municipality may:

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

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

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

(d) For each issuance of a bond, the county or municipality may specify:

  (1) the principal amount;

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

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

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

  (5) the form and denomination;

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

  (7) conditions for redemption before maturity;

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

  (9) the source of security; and

  (10) other provisions that are necessary or desirable to effect the program.

#### Section 1-1107

(a) A county or municipality may incur general obligation debt for the purposes under this subtitle.

(b) Subject to subsection (c) of this section, a county or municipality may issue bonds to finance loans made under a program in accordance with the procedures of the county or municipality for authorization to sell and issue other evidences of indebtedness.

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

  (1) any applicable requirement of the Maryland Constitution and the county's or municipality's charter and laws on referendum for the issuance of general obligation debt; and

  (2) any limitation imposed by public general law, public local law, or charter on general obligation debt of the county or municipality.

#### Section 1-1108

(a) A bond:

  (1) may be in bearer form;

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

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

(b)

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

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

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

(c)

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

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

(d)

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

  (2) A bond is not subject to Sec.Sec. 19-205 and 19-206 of this article.

#### Section 1-1109

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

(b) A county or municipality may issue bonds without regard to the federal tax status of the bonds.

#### Section 1-1110

In an action involving the validity or enforceability of a bond or security for a bond, a finding by a county or municipality is conclusive as to:

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

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

### Subtitle 12. Tobacco Product Sales

#### Section 1-1201

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

(b) "Distribute" means to:

  (1) give, sell, deliver, dispense, or issue;

  (2) offer to give, sell, deliver, dispense, or issue; or

  (3) cause or hire any person to give, sell, deliver, dispense, or issue or offer to give, sell, deliver, dispense, or issue.

(c)

  (1) "Tobacco product" means a product that is:

    (i) intended for human inhalation, absorption, ingestion, smoking, heating, chewing, dissolving, or any other manner of consumption that is made of, derived from, or contains:

      (1) tobacco; or

      (2) nicotine; or

    (ii) an accessory or a component used in any manner of consumption of a product described in item (i) of this paragraph.

  (2) "Tobacco product" includes:

    (i) cigarettes, cigars, pipe tobacco, chewing tobacco, snuff, and snus;

    (ii) electronic smoking devices; and

    (iii) filters, rolling papers, pipes, and liquids used in electronic smoking devices regardless of nicotine content.

  (3) "Tobacco product" does not include a drug, device, or combination product authorized for sale by the U.S. Food and Drug Administration under the Federal Food, Drug, and Cosmetic Act.

#### Section 1-1202

(a) This section applies only in:

  (1) Carroll County; and

  (2) Garrett County.

(b) This section does not apply to:

  (1) the sale of a tobacco product from a vending machine that complies with State law;

  (2) a tobacconist establishment that engages primarily in the sale of tobacco products other than cigarettes, as defined in Sec. 16-101 of the Business Regulation Article; or

  (3) a business that engages primarily in the retail sale of beer, wine, and liquor.

(c) A person who owns or operates a business that engages in the retail sale of a tobacco product may not store or display a tobacco product unless the tobacco product:

  (1) is not immediately accessible to customers; and

  (2) is accessible only to the owner or operator of the business or an agent of the owner or operator.

(d) A person who violates subsection (c) of this section commits a civil infraction and is subject to a civil penalty of:

  (1) $100 for the first violation; and

  (2) $300 for any subsequent violation.

(e) A citation for a second violation may not be issued within 30 days after the date of the first citation.

(f) After a citation is issued for a second violation, a citation may be issued each day that the violation continues after the date of the second citation.

#### Section 1-1203

(a) This section applies only in:

  (1) Carroll County;

  (2) Cecil County;

  (3) Garrett County; and

  (4) St. Mary's County.

(b) Subsection (c)(3) of this section does not apply to the distribution of a coupon that is redeemable for a tobacco product if the coupon:

  (1) is contained in a newspaper, magazine, or other type of publication and the coupon is incidental to the primary purpose of the publication; or

  (2) is sent through the mail.

(c) A person may not:

  (1) distribute a tobacco product to an individual under the age of 21 years, unless the individual is acting solely as the agent of the individual's employer who is engaged in the business of distributing tobacco products;

  (2) distribute cigarette rolling papers to an individual under the age of 21 years; or

  (3) distribute to an individual under the age of 21 years a coupon redeemable for a tobacco product.

(d) A person has not violated this section if:

  (1) the person examined the driver's license or other valid government-issued identification presented by the recipient of a tobacco product, cigarette rolling paper, or coupon redeemable for a tobacco product; and

  (2) the license or other identification positively identified the recipient as being at least 21 years old.

(e)

  (1) In Carroll County and St. Mary's County, a person who violates this section commits a civil infraction and is subject to a civil penalty of:

    (i) $300 for the first violation; and

    (ii) $500 for any subsequent violation within 24 months after the previous citation.

  (2) In Cecil County, a person who violates this section commits a civil infraction and is subject to a civil penalty of:

    (i) $300 for the first violation;

    (ii) $500 for a second violation; and

    (iii) $750 for any subsequent violation.

  (3) In Garrett County, a person who violates this section commits a civil infraction and is subject to a civil penalty not exceeding $300.

#### Section 1-1204

(a)

  (1) Except as otherwise provided in paragraph (2) of this subsection, a county health officer or a designee of a county health officer may issue a civil citation to a person who violates this subtitle.

  (2) In Cecil County, only a sworn law enforcement officer may issue a civil citation to a person who violates this subtitle.

(b) A citation issued under this subtitle shall include:

  (1) the name and address of the person charged;

  (2) the nature of the violation;

  (3) the location and time of the violation;

  (4) the amount of the civil penalty;

  (5) the manner, location, and time in which the civil penalty may be paid;

  (6) the cited person's right to elect to stand trial for the violation; and

  (7) a warning that failure to pay the civil penalty or to contest liability in a timely manner in accordance with the citation:

    (i) is an admission of liability; and

    (ii) may result in an entry of a default judgment that may include the civil penalty, court costs, and administrative expenses.

(c) The county health officer or sworn law enforcement officer shall retain a copy of the citation.

#### Section 1-1205

(a)

  (1) Except as otherwise provided in paragraph (2) of this subsection, a person who receives a citation under this subtitle may elect to stand trial for the violation by filing a notice of intention to stand trial with the county health officer at least 5 days before the date set in the citation for the payment of the civil penalty.

  (2) In Cecil County, a person who receives a citation under this subtitle may elect to stand trial for the violation by filing a notice of intention to stand trial and a copy of the citation with the District Court at least 5 days before the date set in the citation for payment of the civil penalty.

(b) After receiving a notice of intention to stand trial under subsection (a)(1) of this section, the county health officer shall forward the notice and a copy of the citation to the District Court.

(c) After receiving the citation and notice, the District Court shall schedule the case for trial and notify the defendant of the trial date.

#### Section 1-1206

(a) In a proceeding before the District Court, a violation of this subtitle shall be prosecuted in the same manner and to the same extent as a municipal infraction under Sec.Sec. 6-108 through 6-115 of this article.

(b) The governing body of the county in which the violation occurred may authorize the county attorney to prosecute a civil infraction under this subtitle.

#### Section 1-1207

If the District Court finds that a person has committed a civil infraction under this subtitle, the court may assess the costs of the proceedings against the person.

#### Section 1-1208

The District Court shall remit any penalties it collects for a violation of this subtitle to the county in which the violation occurred.

#### Section 1-1209

Adjudication of a violation of this subtitle is not a criminal conviction for any purpose.

### Subtitle 13. Miscellaneous

#### Section 1-1301

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Department" means the State Department of Assessments and Taxation.

  (3) "Governing authority" means:

    (i) the governing body of a county or municipality;

    (ii) a board of directors; or

    (iii) any other body that governs an entity to which this section applies.

(b) This section applies to the following governmental entities:

  (1) counties;

  (2) municipalities;

  (3) bicounty or multicounty agencies;

  (4) public authorities;

  (5) special taxing districts; and

  (6) any other political subdivision or unit of a political subdivision of the State.

(c) Each governmental entity shall have a resident agent who is:

  (1) a resident of the State;

  (2) a Maryland corporation; or

  (3) an officer of the governmental entity.

(d) A governmental entity shall designate or change its resident agent by filing for record with the Department:

  (1) a certification of the person who the charter of the governmental entity authorizes to accept service of process for the governmental entity; or

  (2) absent a charter designation, a certified copy of a resolution of the governmental entity's governing authority that authorizes the designation.

(e)

  (1) A governmental entity may change the address for its resident agent by filing for record with the Department a statement of the change signed by the chair or other principal officer of the governing authority of the governmental entity.

  (2) A resident agent whose address changes may notify the Department by filing for record with the Department a statement of the change signed by or for the resident agent.

(f) A resident agent may resign by filing a statement of resignation with the Department.

(g) There is no fee for a filing under this section.

(h) A designation, change of agent, change of address, or resignation is effective as provided in the Corporations and Associations Article for a corporate resident agent.

(i)

  (1) Service of process on the resident agent of a governmental entity constitutes effective service of process under the Maryland Rules on the governmental entity in an action brought against the governmental entity.

  (2) Any notice required by law to be served by personal service on the resident agent or any other agent or officer of a governmental entity may be served in the manner provided by the Maryland Rules that relate to service of process on governmental entities.

  (3) Service under the Maryland Rules is equivalent to personal service on the resident agent or other agent or officer of a governmental entity.

#### Section 1-1302

(a) Subject to subsection (c) of this section, if a State law or regulation requires a county or municipality to adopt legislation or a regulation at least as strict or effective as the applicable State law or regulation, the county or municipality may adopt the State law or regulation by reference.

(b) If a county or municipality adopts a State law or regulation by reference, the county or municipality shall specify:

  (1) whether it also adopts by reference any amendments to the State law or regulation effective after the local adoption of the State law or regulation by reference; and

  (2) any exceptions to the State law or regulation if the State law or regulation authorizes local options.

(c) The authorization under subsection (a) of this section:

  (1) does not affect any requirement that a county or municipality form and maintain a local program, plan, or standard, including implementation and enforcement processes, required under any State law or any regulation adopted under the authority of that law; and

  (2) if a State law or regulation adopted under the authority of that law authorizes local options, does not grant more authority than is granted by that law or regulation.

#### Section 1-1303

(a) In this section, "regulation" has the meaning stated in Sec. 10-101 of the State Government Article.

(b) This section does not apply to a unit of State government.

(c) Each governmental and quasi-governmental unit shall compile, index, and publish its regulations that affect a member of the general public.

#### Section 1-1304

(a) In this section, "civil penalty" means a civil fine or other monetary penalty administratively imposed.

(b) Unless otherwise provided by statute, ordinance, or regulation, an officer or unit of a county, municipality, bicounty agency, or board of license commissioners authorized by law to impose a civil penalty up to a specific dollar amount for violation of a statute, ordinance, or regulation shall consider the following in setting the amount of the civil penalty:

  (1) the severity of the violation;

  (2) the good faith of the violator; and

  (3) any history of prior violations.

#### Section 1-1305

(a)

  (1) In this section the following words have the meanings indicated.

  (2)

    (i) "Fair market value" means a value that:

      (1) is determined by a schedule adopted by the Department of Transportation; and

      (2) includes the value of the integral parts of an outdoor advertising sign, less depreciation.

    (ii) "Fair market value" does not include loss of revenue.

  (3)

    (i) "Outdoor advertising sign" means an off-premises outdoor sign that is:

      (1) commercially owned and maintained; and

      (2) used to advertise goods or services for sale in a location other than the location where the sign is placed.

    (ii) "Outdoor advertising sign" includes a sign composed of painted bulletin or poster panel, generally referred to as a billboard.

(b) A county or municipality shall pay the fair market value of an outdoor advertising sign that:

  (1) was lawfully erected and maintained under a State, county, or municipal law or ordinance; and

  (2) is removed or required to be removed by the county or municipality.

#### Section 1-1306

(a) In this section, "covered employee" has the meaning stated in Sec. 9-101 of the Labor and Employment Article.

(b) Before a county or municipality may issue a license or permit to an employer to engage in an activity in which the employer may employ a covered employee, the employer shall file with the issuing authority:

  (1) a certificate of compliance with the Maryland Workers' Compensation Act; or

  (2) the number of a workers' compensation insurance policy or binder.

#### Section 1-1307

The population count used after each decennial census to create the legislative districts that are used to elect the governing body of a county or a municipality:

(1) may not include individuals who:

  (i) were incarcerated in State or federal correctional facilities, as determined by the decennial census; and

  (ii) were not residents of the State before their incarceration; and

(2) shall include individuals incarcerated in State or federal correctional facilities, as determined by the decennial census, at their last known residence before incarceration if the individuals were residents of the State.

#### Section 1-1308

To support, foster, or promote an affordable housing program for individuals or families of low or moderate income, a county or municipality may:

(1) establish local trust funds or appropriate funds;

(2) waive or modify building permit or development impact fees and charges that are not mandated under State law for the construction or rehabilitation of lower income housing units:

  (i) in proportion to the number of lower income housing units of a development; and

  (ii)

    (1) that are financed, wholly or partly, by public funding that requires mortgage restrictions or recorded covenants restricting the rental or sale of the housing units to lower income residents in accordance with specific government program requirements; or

    (2) that are developed by a nonprofit organization that:

    (A) has been exempt from federal taxation under Sec. 501(c)(3) of the Internal Revenue Code for at least 3 years; and

    (B) requires the homebuyer to participate in the construction or rehabilitation of the housing unit;

(3) enact legislation that restricts cost and resale prices and requires development of affordable housing units as part of any subdivision in return for added density;

(4) provide land or property from the inventory of the county or municipality; and

(5) support PILOT (payment in lieu of taxes) programs to encourage construction of affordable housing.

#### Section 1-1309

(a) In this section, "electric company" has the meaning stated in Sec. 1-101 of the Public Utilities Article.

(b) This section applies to all counties and municipalities.

(c) On written request by a county or municipality, an electric company shall sell to the county or municipality some or all of the electric company's existing street lighting equipment that is located in the county or municipality.

(d) If the county or municipality purchases street lighting equipment from an electric company, the county or municipality shall pay to the electric company the fair market value of the street lighting equipment.

(e) A county or municipality that purchases street lighting equipment in accordance with this section:

  (1) shall be responsible for the maintenance of the street lighting equipment; and

  (2) may contract with an outside entity for the maintenance of the street lighting equipment.

(f)

  (1) Any person who controls the right to use space on any pole, lamppost, or other mounting surface previously used in the county or municipality by the electric company for street lighting equipment shall allow a county or municipality that has purchased the street lighting equipment to assume the rights and obligations of the electric company with respect to the space for the unexpired term of any lease or other agreement under which the electric company used the space.

  (2) Notwithstanding paragraph (1) of this subsection, the county or municipality may not restrict or prohibit universal access for electricity or any other service by assuming the rights and obligations of an electric company as to space on any pole, lamppost, or other mounting surface used for street lighting equipment.

  (3) Any dispute between an electric company and a county or municipality arising under this subsection shall be submitted to the Public Service Commission for resolution.

#### Section 1-1310

(a) In this section, "swimming pool" means a pool that is owned and operated by the governing body of a county or municipality.

(b)

  (1) Each county or municipality that owns or operates a swimming pool shall develop and implement an automated external defibrillator program that meets the requirements of Sec. 13-517 of the Education Article for each swimming pool owned or operated by the county or municipality.

  (2) The program required under paragraph (1) of this subsection shall include provisions that:

    (i) ensure an automated external defibrillator is provided on-site; and

    (ii) an individual trained in the operation and use of an automated external defibrillator is present at each swimming pool.

(c) The Maryland Department of Health and the Maryland Institute for Emergency Medical Services Systems jointly shall adopt regulations that:

  (1) establish guidelines for periodic inspections and annual maintenance of the automated external defibrillators; and

  (2) assist each county or municipality in carrying out the provisions of this section.

#### Section 1-1311

(a) A county or municipality, in developing a construction or improvement project involving a bridge or other transportation facility that is adjacent to or crosses a waterway, shall consider any reasonable and appropriate measures to provide or improve in the vicinity of the bridge or other transportation facility water access for fishing, canoeing, kayaking, or any other nonmotorized water dependent recreational activity.

(b) A county or municipality, in consultation with the Department of Natural Resources and interested stakeholders, shall establish:

  (1) standards and guidelines for identifying appropriate bridges and other transportation facilities to be considered for the provision or improvement of water access under this section; and

  (2) best practices and cost effective strategies for accommodating water access under this section.

#### Section 1-1312

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Alarm system contractor" has the meaning stated in Sec. 12-806 of this article.

  (3) "Alarm user" has the meaning stated in Sec. 12-806 of this article.

(b) This section applies to all counties and municipalities.

(c) If a county or municipality requires an alarm user or an alarm system contractor to register an alarm system, the county or municipality may impose a penalty against an alarm system contractor for failure to register an alarm system only if:

  (1) the alarm system contractor requested a dispatch to an alarm user; and

  (2) the alarm system contractor failed to register the alarm system.

(d) If a county or municipality requires an alarm user or an alarm system contractor to renew an alarm system's registration, the county or municipality may impose a penalty against an alarm system contractor for failure to renew an alarm system's registration only if:

  (1) the alarm system contractor requested a dispatch to an alarm user;

  (2) the alarm system contractor failed to renew the alarm system's registration; and

  (3) the county or municipality provided the alarm system contractor notice that:

    (i) the alarm system's registration expired;

    (ii) the alarm user or the alarm system contractor did not renew the alarm system's registration; or

    (iii) the alarm system's registration has been suspended.

#### Section 1-1314

(a) This section applies to all counties and municipalities.

(b)

  (1) Within the first 12 months of employment, a new officer of a humane society or animal control shall satisfactorily complete at least 80 hours of training for animal care and control professionals that is approved by the appropriate unit of a county or municipality.

  (2) The training shall include instruction on:

    (i) animal cruelty investigations;

    (ii) the association between animal abuse and the abuse of the elderly or domestic violence, as defined in Sec. 4-701 of the Family Law Article;

    (iii) the use of legal resources, including constitutional law, the Annotated Code of Maryland, and county codes;

    (iv) lawful searches and seizures;

    (v) professionalism and ethical standards;

    (vi) evidence collection and the chain of custody;

    (vii) preparation for civil and criminal proceedings, including basic trial principles and due process protections;

    (viii) conflict resolution and officer safety, including physical and mental health; and

    (ix) animal diseases and zoonosis.

  (3) The unit of the county or municipality may require other training in addition to the training specified in paragraph (2) of this subsection.

(c)

  (1) An officer of a humane society or animal control shall satisfactorily complete at least 6 hours of continuing education approved by the appropriate unit of a county or municipality every year.

  (2) The continuing education shall include instruction on the current laws applicable to officers.

#### Section 1-1315

(a) This section applies to all counties and municipalities.

(b)

  (1) Subject to paragraph (2) of this subsection, an animal control facility operated by a county or municipality shall waive the adoption fee for a dog or cat adopted by a veteran who presents a valid driver's license or identification card issued by the Motor Vehicle Administration that includes a notation of veteran status in accordance with Sec. 12-302 of the Transportation Article.

  (2) An animal control facility may limit the number of adoption fee waivers granted to an individual under this subsection to one dog and one cat within a 6-month period.

#### Section 1-1316

(a) A unit of a county or municipal government may not knowingly use public funds to influence the decisions of county or municipal employees to:

  (1) support or oppose an employee organization that represents or seeks to represent the employees of the county or municipality; or

  (2) become a member of an employee organization.

(b) This section does not apply to an activity performed or an expense incurred in connection with:

  (1) addressing a grievance or negotiating or administering a collective bargaining agreement;

  (2) allowing an employee organization or a representative of an employee organization access to and use of a county's or municipality's facilities or properties;

  (3) performing an activity required by federal or State law or a collective bargaining agreement;

  (4) negotiating, entering into, or carrying out a voluntary recognition agreement with an employee organization; or

  (5) paying wages to a represented employee while the employee is performing duties if the payment is permitted under a collective bargaining agreement.

#### Section 1-1317

(a) In this section, "amateur radio" means the use of a radio frequency spectrum for purposes of noncommercial exchange of messages, wireless experimentation, self-training, private recreation, radiosport, contesting, or emergency communication by a duly authorized person interested in radioelectric practice with a purely personal aim and without pecuniary interest.

(b) This section applies to all counties and municipalities.

(c) It is the intent of the General Assembly to codify the provisions of 47 C.F.R. Sec. 97.15 concerning the Federal Communications Commission's preemption of local ordinances regulating amateur radio station antenna structures.

(d) A county or municipal ordinance regulating amateur radio station antenna structures:

  (1) may not preclude amateur radio communications;

  (2) shall reasonably accommodate amateur radio communications; and

  (3) shall constitute the minimum practicable regulation to accomplish the legitimate purpose of the ordinance.

#### Section 1-1318

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Invasive bamboo" means nonnative bamboo that is characterized by aggressive spreading behavior, including bamboo species in the genus Phyllostachys.

  (3) "Listed invasive tree" means any tree on the "Maryland Prohibited Invasive Plant List" posted by the Department of Agriculture.

  (4) "Native tree replacement program" means a program whereby a person receives a native tree in exchange for removing and eradicating an invasive tree.

  (5) "Tree of heaven" means the Ailanthus altissima tree species.

(b) This section applies to all counties and municipalities.

(c) The governing body of a county or municipality, by ordinance, may regulate invasive bamboo, listed invasive trees, or trees of heaven, including by prohibiting a person from:

  (1) selling invasive bamboo, listed invasive trees, or trees of heaven;

  (2) planting invasive bamboo, listed invasive trees, or trees of heaven;

  (3) allowing invasive bamboo to grow on the property of the person without proper upkeep and appropriate containment measures, including barriers or trenches; and

  (4) allowing trees of heaven or other listed invasive trees to grow on the person's property.

(d) The governing body of a county or municipality may provide for the enforcement of an ordinance adopted under this section by:

  (1) requiring any damages caused by invasive bamboo, listed invasive trees, or trees of heaven to be mitigated; and

  (2) establishing a civil fine.

(e) The governing body of a county or municipality may establish a bounty or native tree replacement program to incentivize the removal and eradication of trees of heaven and other listed invasive trees.

(f) A bounty or native tree replacement program established by a county or municipality shall require:

  (1) an invasive tree to be properly identified consistent with the species page published by the University of Maryland agriculture extension; and

  (2) the invasive species, after being properly identified, to be removed or eradicated according to professionally accepted methods or consistent with methodology on the species page published by the University of Maryland agriculture extension.

#### Section 1-1319

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Condominium association" means a council of unit owners, as defined in Sec. 11-109 of the Real Property Article, subject to the provisions of the Maryland Condominium Act.

  (3) "Homeowners association" means a homeowners association, as defined in Sec. 11B-101 of the Real Property Article, subject to the provisions of the Maryland Homeowners Association Act.

(b)

  (1) A county or municipality may establish a local trust fund or other appropriate fund for the purpose of repairing or rehabilitating infrastructure within communities that are subject to the requirements of the Maryland Condominium Act or the Maryland Homeowners Association Act.

  (2) A fund created under paragraph (1) of this subsection:

    (i) may be used, at the discretion of a county or municipality, for the repair of infrastructure that is traditionally maintained by the county or municipality for the benefit of the public, including roads and stormwater management facilities; and

    (ii) may not be used to repair or replace recreational facilities used for the exclusive use or benefit of the members of a condominium association or homeowners association or their guests.

(c)

  (1) A fund established by a county or municipality under subsection (b) of this section shall consist of:

    (i) property tax revenues paid to the county or municipality by unit owners in a condominium or lot owners in a homeowners association;

    (ii) other appropriations made by the county or municipality for the benefit of the fund;

    (iii) gifts or donations made to the fund; and

    (iv) investment earnings of the fund.

  (2) A county or municipality shall assign property tax revenues paid to the county or municipality by the unit owners in a condominium association or the lot owners in a homeowners association to a fund established in accordance with this section as follows:

    (i) 25% of the revenues per year for any condominium association or homeowners association that has not received support from the fund since the date on which the fund was established; and

    (ii) not less than 10% but not more than 25% of the revenues per year for any condominium association or homeowners association that has received support from the fund since the date on which the fund was established.

(d)

  (1) Subject to paragraph (2) of this subsection, a county or a municipality may establish eligibility requirements for the award of funds to a condominium association or homeowners association.

  (2)

    (i) A county or municipality shall prioritize support for condominium associations and homeowners associations that exhibit the greatest need for infrastructure repair or rehabilitation.

    (ii) When evaluating the need for funding to support infrastructure repair, a county or municipality may consider the availability of other funds and resources on which a condominium association or homeowners association may rely.

#### Section 1-1320

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Administration" means the Maryland Energy Administration.

  (3) "Residential energy storage system" means a system, on a residential customer's side of the meter, used to store electrical energy, or mechanical, chemical, or thermal energy that was once electrical energy, for use as electrical energy at a later date or in a process that offsets electricity use at peak times.

  (4) "Residential solar energy system" means any configuration of solar energy devices that collects and distributes solar energy for the purpose of generating electricity and that has a single residential interconnection with the electrical grid.

  (5) "Restriction on use" has the meaning stated in Sec. 2-126 of the Real Property Article.

  (6) "Solar permitting fee" means a fee equal to the sum of all charges imposed by a county or municipality, including charges imposed by a provider of solar permitting software, in connection with an application for a residential solar energy system.

  (7) "Solar permitting software" means software or a combination of software that:

    (i) automates plan review for residential solar energy systems to the most recent version of, as applicable:

      (1) the Maryland Building Performance Standards;

      (2) the National Electrical Code, including legally adopted local amendments; and

      (3) locally adopted building codes;

    (ii) produces code-compliant approvals;

    (iii) issues a code-compliant permit;

    (iv) accepts online payments for any permitting fees imposed;

    (v) issues permits or permit revisions immediately on receipt of online submission of permitting fee payments, if applicable;

    (vi) is capable of processing a majority of residential solar energy system applications; and

    (vii) when a permit is issued, immediately notifies a county or municipality, as applicable, of the issuance of the permit and allows access to approved application materials.

(b)

  (1) This section applies to all counties and municipalities.

  (2) This section does not apply to a restriction on use on:

    (i) historic property that is listed in or determined by the Director of the Maryland Historical Trust to be eligible for inclusion in the Maryland Register of Historic Properties; or

    (ii) property located within a district designated by the applicable local jurisdiction to be of historic significance in accordance with Sec. 8-105 of the Land Use Article.

(c)

  (1) Subject to subsection (d) of this section and except as provided in subsection (e) of this section, on or before August 1, 2027, each county and municipality shall implement solar permitting software for features supporting the application submission, tracking, and approval of residential building permits for:

    (i) residential solar energy systems;

    (ii) residential energy storage systems;

    (iii) main electrical panel upgrades; and

    (iv) main electrical panel derates.

  (2) A county or municipality shall:

    (i) complete a remote or in-person inspection required for a project permitted by solar permitting software within an average of 5 business days after receiving a properly completed request for inspection; and

    (ii) make publicly available annual data for the average inspection time for projects permitted by solar permitting software.

  (3) Review of a permit application to install a residential solar energy generating system that is submitted using solar permitting software shall be limited to a determination whether the application meets all health and safety requirements under State and local law.

  (4) A county or municipality shall complete any manual review of a software-approved permit within 5 business days after the permit is approved.

  (5)

    (i) This paragraph applies only to a residential solar energy system:

      (1) that is or will be installed on a residential rooftop; and

      (2) with a generating capacity of less than 20 kilowatts, as measured by the alternating current rating of the system's inverter.

    (ii) Except as provided in subparagraph (iii) of this paragraph, beginning August 1, 2027, a county or municipality may not set a permitting fee for permits issued by solar permitting software that exceeds $500 for residential solar energy systems.

    (iii) A third-party payment processing charge may be assessed for permits issued by solar permitting software in addition to the maximum permitting fee under subparagraph (ii) of this paragraph.

  (6) An inspector may review construction documents that are produced by the solar permitting software.

(d) A county or municipality may not be required to comply with the requirements of subsection (c) of this section if:

  (1) the county or municipality does not require a permit for:

    (i) residential solar energy systems; or

    (ii) residential solar energy systems paired with a residential solar energy storage system; or

  (2) as determined by the Administration, the automated software is no longer updated or maintained.

(e) The Administration shall delay the initial implementation or suspend the requirements of subsection (c) of this section if there are insufficient State or federal funds available to the Administration to provide financial support to a county or municipality implementing solar permitting software.

(f)

  (1) Subject to paragraph (2) of this subsection, an electric company, other than a municipal electric utility or a third-party contractor for the electric company, shall perform any meter disconnection and reconnection necessary for the interconnection of a residential solar energy system or residential energy storage system within 5 business days after receiving a properly completed request from the owner or installer of the system.

  (2) An electric company may authorize qualified personnel who are not associated with the electric company to perform any meter disconnection and reconnection necessary for the interconnection of a residential solar energy system or a residential energy storage system.

  (3) This subsection may not be construed to alter requirements for small generator facility interconnection standards established by the Public Service Commission.

(g) The Attorney General may seek judicial enforcement against a county or municipality that fails to comply with this section.

### Subtitle 14

#### Section 1-1401

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

(b) "Authority" means a nonprofit or quasi-governmental entity created by one or more local governments under Sec. 1-1403 of this subtitle.

(c) "Board" means the board of directors of an authority.

(d)

  (1) "Bond" means a bond issued by an authority under this subtitle.

  (2) "Bond" includes a bond, a refunding bond, a note, and any other obligation.

(e) "Cost" includes:

  (1) the purchase price of property;

  (2) the cost to acquire any right, title, or interest in property;

  (3) the cost of any improvements made to property;

  (4) the amount to be paid to discharge each obligation necessary or desirable to vest title to any part of property in an authority or other owner;

  (5) the cost of any property, right, easement, franchise, or permit associated with a project;

  (6) the cost of labor, machinery, and equipment necessary to implement a project;

  (7) financing charges;

  (8) interest and reserves for principal and interest and for improvements;

  (9) the cost of revenue and cost estimates, engineering and legal services, plans, specifications, studies, surveys, and other expenses necessary or incident to determining the feasibility or practicability of a project;

  (10) administrative expenses; and

  (11) other expenses as necessary or incident to:

    (i) financing a project;

    (ii) acquiring and improving a project;

    (iii) placing a project in operation, including reasonable provisions for working capital; and

    (iv) operating and maintaining a project.

(f) "Local government" means a municipality or a county.

(g)

  (1) "Project" means any organized plan carried out by an authority in relation to:

    (i) acquiring and rehabilitating abandoned and dilapidated properties; and

    (ii) marketing and leasing, selling, or otherwise transferring the rehabilitated properties.

  (2) "Project" includes:

    (i) acquiring land or an interest in land;

    (ii) acquiring structures, equipment, and furnishings located on a property;

    (iii) acquiring property that is functionally related and subordinate to a project; and

    (iv) obtaining or contracting for any services necessary for the rehabilitation of a property.

(h)

  (1) "Revenue" means the income, revenue, and other money an authority receives from or in connection with a project and all other income of an authority.

  (2) "Revenue" includes grants, rentals, rates, fees, and charges.

(i) "Tax sale property" means property or an interest in property sold by the tax collector of the county in accordance with Title 14, Subtitle 8, Part III of the Tax - Property Article.

(j)

  (1) "Trust agreement" means an agreement entered into by an authority to secure a bond.

  (2) "Trust agreement" includes a bond contract, bond resolution, or other contract with or for the benefit of a bondholder.

(k) "Water and sewer authority" means an authority established under Title 9, Subtitle 9 of the Environment Article.

(l) "Water and sewer lien" means a lien established under Sec. 9-949 of the Environment Article.

#### Section 1-1402

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

(b) The powers granted to an authority under this subtitle are supplemental to powers granted to an authority under any other law.

(c) This subtitle does not authorize an authority to:

  (1) exercise the power of eminent domain; or

  (2) impose any tax or special assessment.

#### Section 1-1403

(a)

  (1) By ordinance, the governing body of a local government may establish a land bank authority in accordance with this subtitle.

  (2) Two or more local governments may elect to enter into an intergovernmental cooperation agreement to create a single land bank to act on behalf of the local governments, which may include one or more water and sewer authorities.

  (3) An ordinance adopted under this section:

    (i) is administrative in nature;

    (ii) is not subject to referendum; and

    (iii) in a charter county that has a publicly elected county executive or in a municipality that has a publicly elected chief executive or mayor, is subject to approval by the county executive, chief executive, or mayor.

(b) An ordinance adopted under subsection (a) of this section shall include proposed articles of incorporation of an authority that state:

  (1) the name of the authority, which shall be "Land Bank Authority of (name of the incorporating local government)";

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

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

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

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

  (6) the powers of the authority, subject to the limitations of this subtitle.

(c)

  (1) The chief executive, county executive, or mayor of the incorporating local government, or any other official designated in the ordinance establishing an authority, shall execute and file the articles of incorporation of the authority for recordation with the State Department of Assessments and Taxation.

  (2) When the State Department of Assessments and Taxation accepts the articles of incorporation for recordation, the authority becomes a body politic and corporate and an instrumentality of the incorporating local government.

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

(d)

  (1) By ordinance, the governing body of the incorporating local government may adopt an amendment to the articles of incorporation of an authority.

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

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

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

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

(e)

  (1) Subject to this section and any limitations imposed by law on the impairment of contracts, the incorporating local government, in its sole discretion, by ordinance may:

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

    (ii) subject to paragraph (2) of this subsection, terminate the authority.

  (2) If one or more local governments engaged in an intergovernmental cooperation agreement decide not to terminate the authority, the authority may continue to operate if:

    (i) the name of the authority is revised to remove the local government that has decided to terminate its participation in the authority by withdrawal;

    (ii) the withdrawing local government designates all property to remain with the authority except that:

      (1) on demand of a withdrawing local government that is a municipality, all property located wholly within the municipality shall be transferred to the municipality; and

      (2) on demand of a withdrawing local government that is a county, all property located wholly within the county and outside any municipality participating in the intergovernmental cooperation agreement shall be transferred to the county; and

    (iii) all obligations of the authority to the withdrawing local government and of the withdrawing local government to the authority are assumed by the withdrawing local government.

  (3) On termination of the authority:

    (i) title to all property of the authority shall be transferred to and shall vest in the incorporating local government; and

    (ii) all obligations of the authority shall be transferred to and assumed by the incorporating local government.

#### Section 1-1404

An ordinance that creates an authority shall establish a board to govern the authority and shall include provisions for:

(1) appointment procedures;

(2) powers of the board;

(3) removal procedures;

(4) term lengths; and

(5) the election of a chair.

#### Section 1-1405

(a) Except as limited by the authority's articles of incorporation, an authority has all the powers specified in this subtitle.

(b) An authority may:

  (1) adopt, amend, and repeal bylaws for the conduct of business of the authority;

  (2) sue and be sued;

  (3) maintain an office at a place the authority designates;

  (4) borrow money;

  (5) issue bonds and other obligations for any corporate purpose in accordance with this subtitle or an ordinance adopted under this subtitle;

  (6) invest money of the authority in instruments, obligations, securities, or property;

  (7) enter into contracts and execute the instruments or agreements necessary or convenient to carry out this subtitle or an ordinance adopted under this subtitle to accomplish the purposes of the authority;

  (8) solicit and accept gifts, grants, loans, or other assistance in any form from any public or private source, subject to this subtitle or any ordinance adopted under this subtitle;

  (9) participate in a program of the federal government, the State, a political subdivision of the State, or an intergovernmental entity created under State law;

  (10) contract for goods and services;

  (11) study, develop, and prepare reports or plans to assist in the authority's exercise of powers and to monitor and evaluate the authority's progress;

  (12) contract with public or private entities for services necessary to manage and operate the authority;

  (13) provide acquisition, management, and sale services to a local government for property owned by the local government;

  (14) create, own, control, or be a member of a corporation, limited liability company, partnership, or other person, whether operated for profit or not for profit, for the purposes of developing property in order to maximize marketability;

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

  (16) insure against losses in connection with the real property, assets, or activity of the authority;

  (17) design, develop, construct, demolish, rehabilitate, renovate, relocate, and otherwise improve real property or interests in real property;

  (18) raise revenue by any legal means required to make the operations and activities of the authority self-sustaining; and

  (19) do all things necessary or convenient to carry out the powers expressly granted by this subtitle or by an ordinance adopted under this subtitle.

(c) An authority may delegate to a member or officer a power granted to the authority by this subtitle, including the power to execute a bond, obligation, certificate, deed, lease, mortgage agreement, or other document or instrument.

#### Section 1-1406

(a) An authority may:

  (1) acquire real property or rights or interests in real property, directly or through a person or governmental entity, by gift, devise, transfer, exchange, foreclosure, purchase, or otherwise on terms and conditions and in a manner the authority considers proper;

  (2) own property in the authority's name, including tax foreclosed property and property without clear title;

  (3) sell, lease as lessor, transfer, and dispose of the authority's interest in property;

  (4) procure insurance against loss in connection with the property, assets, or activities of the authority; and

  (5) execute deeds, mortgages, contracts, leases, purchases, or other agreements regarding the property of the authority.

(b) Property purchased, owned, or sold under this section may not be located outside the jurisdiction of the local government in which the authority is located.

(c)

  (1) An authority may  quiet title or foreclose on a property in which it holds an interest that is not fee simple title by:

    (i) conducting an examination of title to determine the identity of any person possessing a claim or interest in the property; and

    (ii) filing a complaint to quiet title in accordance with Title 14, Subtitle 6 of the Real Property Article.

  (2) An authority may join in a single complaint to quiet title or foreclose on one or more parcels of real property.

#### Section 1-1407

An authority may:

(1) employ staff and retain consultants; and

(2) set their compensation.

#### Section 1-1408

The court may appoint an authority to serve as a receiver in a receivership proceeding filed by a local government.

#### Section 1-1409

(a) An authority shall:

  (1) adopt a code of ethics for the authority's directors, officers, and employees;

  (2) establish policies and procedures requiring:

    (i) the disclosure of relationships that may create a conflict of interest; and

    (ii) any member of the board with a direct or indirect interest in a matter before the authority to disclose the member's interest to the board before the board takes any action on the matter; and

  (3) comply with the Open Meetings Act.

(b) Except as otherwise provided in this subtitle or the ordinance establishing an authority, the procedures of the incorporating local government control any matter relating to the internal administration of an authority.

#### Section 1-1410

An authority may have the same immunities as the local government that creates the authority under Sec. 1-1403 of this subtitle.

#### Section 1-1411

(a) With respect to property held or owned by the authority, the authority may:

  (1) grant or acquire a license, an easement, or an option;

  (2) set, charge, and collect rents, fees, and charges for use of the property;

  (3) pay taxes or special assessments due;

  (4) take any action, provide any notice, or institute any proceeding required to clear or quiet title in order to establish ownership by and vest title to property in the authority;

  (5) abate violations of the local and State building, fire, health, and related codes; and

  (6) hold, manage, maintain, operate, repair, lease as lessor, secure, prevent the waste or deterioration of, or demolish the property and take all other actions necessary to preserve the value of the property.

(b) An authority shall be made a party to, and shall defend any action or proceeding concerning, claims against property held by the authority.

#### Section 1-1412

(a) Property held by an authority shall be inventoried and classified according to title status and suitability for use.

(b) A clerk of the court may not charge a fee to record a document evidencing the transfer under this subtitle of property to the authority by the State or a local government.

#### Section 1-1413

(a)

  (1) After an unsuccessful attempt by the local government to collect outstanding liens at tax sale and subject to the approval of the water and sewer authority, governing body, or tax collector of the jurisdiction where the property is located, an authority may accept from a person with an interest in a parcel of water and sewer lien property, tax delinquent property, or tax sale property a deed or assignment conveying that person's interest in the property instead of:

    (i) the foreclosure or sale of the property for delinquent taxes, penalties, and interest, as defined by Sec. 14-801(d) of the Tax - Property Article;

    (ii) delinquent-specific taxes imposed by a local taxing jurisdiction; or

    (iii) delinquent water and sewer liens imposed by a water and sewer authority.

  (2)

    (i) After an unsuccessful attempt by the local government or water and sewer authority to collect outstanding liens that are delinquent and at the discretion of the governing body of the jurisdiction, the water and sewer authority, or the tax collector where the property is located, an authority may accept from the local government or water and sewer authority with an interest in a parcel of delinquent water and sewer lien property, tax delinquent property, or tax sale property its interest in the water and sewer liens or tax liens in the property.

    (ii) The authority may:

      (1) collect on liens or taxes collected under subparagraph (i) of this paragraph and retain all payment of taxes, liens, penalties, or any interest on the liens or taxes; or

      (2) foreclose on, enter into a deed in lieu of foreclosure, or sell the property for the liens or taxes and retain all payment of taxes, penalties, or interest on the liens or taxes and the costs of selling the property and, if any other net proceeds remain from the sale, return any net proceeds to the tax collector for distribution on a pro rata basis to the appropriate taxing units and water and sewer authorities in a ratio equal to the delinquent taxes or water and sewer liens, penalties, and interest owed on the property.

(b) Conveyance of property by deed instead of foreclosure or transfer of a lien or tax on property under this section may not affect or impair any other lien against the property or any existing recorded or unrecorded interest in the property, including any:

  (1) easement or right-of-way;

  (2) future installment of a special assessment;

  (3) lien recorded by the State;

  (4) private deed restriction;

  (5) security interest or mortgage;

  (6) tax lien of another taxing jurisdiction that does not consent to a release of its lien; or

  (7) water and sewer lien of a water and sewer authority that does not consent to a release of its lien.

(c) A tax lien or water and sewer lien against property held by or under the control of an authority may be released or abated at any time by:

  (1) a local government with respect to a lien held by the local government;

  (2) the governing body of any taxing jurisdiction other than the State, county, or municipality with respect to a lien held by the taxing jurisdiction;

  (3) a public water or sewer authority with respect to a tax lien, water and sewer lien, or right to collect a tax held by the public water or sewer authority; or

  (4) the Comptroller with respect to a State tax lien.

#### Section 1-1414

(a) Except as provided in subsections (c) and (d) of this section, money received by an authority as payment of taxes, penalties, water and sewer liens, or interest, or from the redemption or sale of property subject to a tax lien of any taxing unit, shall be returned to the tax collector in the jurisdiction where the property is located for distribution on a pro rata basis to the appropriate taxing units in an amount equal to delinquent taxes, penalties, and interest owed on the property.

(b) Proceeds received by an authority may be retained by the authority for the purposes of this subtitle, unless otherwise designated by:

  (1) an agreement of the authority;

  (2) the provisions of a deed;

  (3) this subtitle; or

  (4) any other law.

(c) Money received by an authority as payment of water and sewer liens, taxes, penalties, or interest, or from the redemption or sale of property subject to a tax lien of any taxing unit may be retained by an authority under a written agreement with a local government or a law enacted by the legislative body of a local government.

(d)

  (1) To facilitate a transfer of real property to an authority, the governing body for the jurisdiction where the real property is located may release any liens for unpaid real property taxes or other charges and assessments imposed by the governing body to which the property would be otherwise subject, if:

    (i)

      (1) the total amount of liens for unpaid real property taxes, charges, and assessments imposed with respect to the property exceeds the lesser of the total value of the land and any improvement on the land as last determined by the tax assessor of the governing body or as determined by an appraisal report prepared, not more than 6 months before the request for the release of the lien, by a real estate appraiser who is licensed under Title 16 of the Business Occupations and Professions Article; or

      (2) the tax collector for the local government has sold the real property at a tax sale under Title 14, Subtitle 8 of the Tax - Property Article, but  the tax sale certificate has become void;

    (ii) the code enforcement office, housing department, or equivalent department or agency of the local government of the jurisdiction where the tax lien is held certifies that the property:

      (1) is a vacant lot; or

      (2) has a building or structure that is:

      (A) vacant; and

      (B) unsafe or unfit for habitation; and

    (iii) the authority finds that a transfer under this section is necessary:

      (1) to eliminate a blighting influence; and

      (2) to prevent the tax abandonment of a property.

  (2) The release of a lien for real property taxes, charges, or assessments as authorized under paragraph (1) of this subsection does not abate the transferor's liability for the remaining amount of the tax debt.

  (3) The governing body of a jurisdiction may set additional standards and requirements for approval of the release of liens under this section.

#### Section 1-1415

(a) An authority is exempt from any State or local tax or assessment on the authority's properties or activities or on any revenue from the properties or activities.

(b) Except as provided in subsection (d) of this section, property that an authority sells or leases to a private entity is subject to State and local property taxes from the time of the sale or lease.

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

(d) Sale or lease to a nonprofit organization, as defined in Sec. 1-101 of the Housing and Community Development Article, is exempt from State and local property taxes from the time of sale or lease, if:

  (1) the nonprofit organization has entered into an agreement with an authority to redevelop the property; and

  (2) the agreement is in force and effect and not defaulted on within the application period.

#### Section 1-1416

(a) An authority may bring a civil action to prevent, restrain, or enjoin the waste of or unlawful removal of any property from real property held by the authority.

(b)

  (1) An authority shall be made a party to any action to set aside:

    (i) title to property the authority holds; or

    (ii) the sale of property by the authority.

  (2) A hearing in an action under this subsection may not be held until the authority is served in accordance with the Maryland Rules.

#### Section 1-1417

(a) Property of an authority is public property devoted to an essential public and governmental function and purpose.

(b) Income of an authority is received for a public and governmental purpose.

#### Section 1-1418

An authority is subject to any local:

(1) land use controls;

(2) permitting processes for construction, demolition, or repair of a property; and

(3) zoning laws.

#### Section 1-1419

An authority shall report annually on the activities of the authority to the local government where the authority is located and, in accordance with Sec. 2-1257 of the State Government Article, the General Assembly.

#### Section 1-1420

(a)

  (1) An authority may:

    (i) issue bonds to pay the cost of acquiring or improving property;

    (ii) fund or refund the bonds;

    (iii) purchase bonds with any funds available; and

    (iv) hold, pledge, cancel, or resell bonds.

  (2) By resolution, an authority may authorize the chair, one of the authority's members, or a committee of the members to determine or provide for any matter relating to bonds that the authority considers appropriate, including:

    (i) specifying, determining, requiring, and approving matters, documents, and procedures that relate to the authorization, sale, security, issuance, delivery, and payment of and for the bonds;

    (ii) creating security for the bonds; and

    (iii) providing for the administration of bond issues.

  (3) The power granted in paragraph (2) of this subsection is in addition to powers conferred on the authority by this subtitle and does not limit any power of the authority under this subtitle.

  (4) Within the limits that the authority sets, the authority may authorize the executive director to take any of the actions described in paragraph (2) of this subsection.

(b) An authority may issue the bonds at one time or in one or more series.

(c) For each issue of an authority's bonds, the authority shall pass a resolution that:

  (1) specifies and describes the project for which the proceeds of the bond issuance are intended;

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

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

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

(d) Subject to any provision for their registration, bonds are negotiable instruments for all purposes regardless of whether they are payable from a special fund.

(e)

  (1) The bonds may be serial bonds,    term bonds, or both.

  (2) Subject to any delegation under subsection (a)(2) of this section, the resolution authorizing bonds may provide:

    (i) the dates of the bonds;

    (ii) the maturity dates of the bonds;

    (iii) the interest rates on the bonds;

    (iv) the time at which the bonds will be payable;

    (v) the denominations of the bonds;

    (vi) whether the bonds will be in coupon or registered form;

    (vii) any registration privileges of the bonds;

    (viii) the manner of execution of the bonds;

    (ix) the place at which the bonds will be payable; and

    (x) any terms of redemption of the bonds.

  (3) The bonds shall mature within a period not to exceed 50 years after the date of issue.

  (4) The bonds shall be payable in United States currency.

(f) An authority shall sell the bonds at competitive or negotiated sale in a manner and for a price the authority determines to be in the authority's best interests.

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

(h) Pending preparation of the definitive bonds, an authority may issue interim receipts or certificates that will be exchanged for definitive bonds.

(i) A trust agreement authorizing bonds may contain provisions that are part of the contract with the bondholders, including:

  (1) the rates, rentals, fees, and other charges, the amounts to be raised in each year, and the use and disposition of the revenues;

  (2) the setting aside of reserves and sinking funds and their disposition;

  (3) limits on the right of the authority or the authority's agents to restrict and regulate the use of a project;

  (4) limits on the purpose to which the proceeds of the sale of bonds may be applied;

  (5) limits on issuing additional bonds and refunding bonds and the terms under which additional bonds may be issued and secured;

  (6) the procedure to amend or abrogate the terms of a contract with bondholders and the requirements for consent;

  (7) limits on the amount of project revenues to be expended for operating, administrative, or other expenses of the authority;

  (8) the acts or omissions that constitute default by the authority and the rights and remedies of the bondholders in a default;

  (9) the conveyance or mortgaging of a project and its site to secure the bondholders;

  (10) creation and disposition of a collateral fund to secure the bondholders; and

  (11) pledging the following to secure payment of bonds, subject to any existing agreements with bondholders:

    (i) the full faith and credit of an authority;

    (ii) revenues of a project;

    (iii) a revenue-producing contract the authority has made with a person or public entity; or

    (iv) the proceeds of the sale of bonds.

(j) The members of an authority and a person executing the bonds may not be held liable personally on the bonds.

#### Section 1-1421

(a) The corporate trustee under a trust agreement may be a trust company or bank that has the powers of a trust company in or outside the State.

(b) An expense incurred in carrying out the trust agreement or a resolution may be treated as part of the cost of the operation of a project.

#### Section 1-1422

Notwithstanding any other provision of this subtitle, in a proceeding involving the validity or enforceability of a bond or the security for a bond, the determination of an authority under this subtitle is conclusive and binding.

#### Section 1-1423

Bonds are securities:

(1) that may be deposited with and received by a unit of the State or a political subdivision of the State for any purpose for which the deposit of bonds or obligations of the State is authorized by law; and

(2) in which any of the following persons or entities may legally and properly invest money, including capital that the person or entity owns or controls:

  (i) an officer or a unit of the State or a political subdivision of the State;

  (ii) a bank, a trust company, a savings and loan association, an investment company, or any other person conducting a banking business;

  (iii) an insurance company, an insurance association, or any other person conducting an insurance business;

  (iv) a personal representative, a guardian, a trustee, or any other fiduciary; and

  (v) any other person.

#### Section 1-1424

(a) A bond is not:

  (1) a debt or liability of the State or a political subdivision of the State; or

  (2) a pledge of the full faith and credit of the State or a political subdivision of the State.

(b) Each bond shall state on its face that neither the State nor a political subdivision of the State is obliged to pay the principal of or interest on the bond except from revenues pledged to the payment of the bond.

(c) The issuance of bonds does not directly, indirectly, or contingently obligate the State or any political subdivision:

  (1) to impose or pledge a tax to pay the bonds; or

  (2) to appropriate money to pay the bonds.

(d) This subtitle does not prohibit an authority from pledging its full faith and credit in connection with the issuance of bonds.

#### Section 1-1425

(a) An authority may:

  (1) impose rates, rents, fees, and charges related to a project and for the services related to a project; and

  (2) contract with any person or governmental entity to exercise its authority under this section.

(b) The rates, rents, fees, and charges established by an authority under this section shall be imposed and adjusted so that the aggregate amount of the rates, rents, fees, and charges from the project, when added to other available money, is sufficient to:

  (1) pay for the expenses of the project;

  (2) pay the principal of and the interest on the bonds that the authority issued for the project as they become due and payable; and

  (3) create and maintain reserves required or provided for in a trust agreement.

(c) The rates, rents, fees, and charges established by an authority under this section are not subject to supervision or regulation by any unit of the State.

#### Section 1-1426

(a)

  (1) Any pledge of revenues and other money under Sec. 1-1420(i) of this subtitle is valid and binding from the time the pledge is made.

  (2)

    (i) The revenue or money that an authority pledges and receives is subject immediately to the lien of the pledge.

    (ii) Neither physical delivery of the revenue or money nor any other act is required to validate the lien.

  (3) The lien of the pledge is valid and binding against each party with a claim against the authority in tort, contract, or otherwise, regardless of whether the party has notice of the lien.

(b) The trust agreement and any other agreement or lease creating a pledge under this section need not be filed or recorded, except in the records of the authority.

#### Section 1-1427

(a) Proceeds from the sale of bonds and other revenues received under this subtitle are trust funds to be held and applied solely as provided in this subtitle.

(b)

  (1) Each officer, bank, or trust company that receives trust money from an authority under this subtitle shall act as trustee of the money and shall hold and apply the money for the purposes specified under this subtitle.

  (2) The officer, bank, or trust company holding money is subject to:

    (i) any regulation adopted under this subtitle; and

    (ii) the resolution authorizing the issuance of bonds or the trust agreement.

#### Section 1-1428

(a)

  (1) An authority may issue bonds to refund outstanding bonds of the authority, including paying:

    (i) any redemption premium;

    (ii) interest accrued or to accrue to the date of redemption, purchase, or maturity of the bonds; and

    (iii) any part of the cost of acquiring or improving property as part of a project.

  (2) Refunding bonds may be issued for any corporate purpose, including:

    (i) realizing savings in the effective costs of debt service, directly or through a debt restructuring; or

    (ii) alleviating a potential or actual default.

(b) Refunding bonds issued under this section shall be issued in the same manner and are subject to this subtitle to the same extent as any other bond.

(c) An authority may issue refunding bonds in one or more series in an amount greater than the amount of the bonds to be refunded.

#### Section 1-1429

(a) An authority may issue negotiable bond anticipation notes in anticipation of the sale of bonds for any corporate purpose.

(b) Bond anticipation notes issued under this section shall be issued in the same manner as bonds.

(c) Bond anticipation notes issued under this section and the resolution authorizing them may contain any provision, condition, or limitation that may be included in a trust agreement.

(d) An authority may issue bond anticipation notes to pay any other bond anticipation notes.

(e) Bond anticipation notes shall be paid from:

  (1) money available and not otherwise pledged;

  (2) revenues of the authority; or

  (3) the proceeds of the sale of the bonds in anticipation of which the notes were issued.

#### Section 1-1430

(a) An authority shall convey title to property relating to a project and release collateral in accordance with this section when:

  (1)

    (i) the principal of and interest on bonds issued to finance or refinance the project, including any refunding bonds, have been fully paid and retired; or

    (ii) adequate provision has been made to fully pay and retire the bonds;

  (2) all other conditions of the trust agreement have been satisfied; and

  (3) the lien of the trust agreement has been released.

(b) On satisfaction of the conditions under subsection (a) of this section, an authority promptly shall execute any deed, conveyance, release, or document and take any other action necessary to convey title to the property and release collateral free of any lien or encumbrance created through the authority.

#### Section 1-1431

(a) A bondholder, a holder of any coupons attached to bonds, or a trustee under a trust agreement securing the bonds may sue:

  (1) to protect and enforce rights under State law or a trust agreement; and

  (2) to enforce and compel the performance of duties by an authority or its officer, employee, or agent that this subtitle or a trust agreement requires, including imposing rates, rents, fees, and charges that the trust agreement requires to be imposed.

(b) The rights under this section are subject to any trust agreement.

### Subtitle 15. School Construction Permit Process

#### Section 1-1501

(a)

  (1) In this section the following words have the meanings indicated.

  (2)

    (i) "Construction" means the process of building, altering, repairing, renovating, improving, or demolishing any structure, building, or other improvement to real property.

    (ii) "Construction" includes systemic renovation projects as defined in COMAR 23.03.02.15.

  (3) "School facility" means a structure, a building, a parking facility, an athletic facility, a testing facility, or any other facility in the State that is used for the education of students.

(b) To the extent practicable, each county or municipality shall expedite the process for the application and issuance of a permit related to or required for the construction of a public or private school facility.

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Md. Code Ann., Local Gov't (as displayed at mgaleg.maryland.gov, October 16, 2026)