In this subtitle the following words have the meanings indicated. “Authority” means a parking authority established under this subtitle. “Bond” means a revenue bond issued by an authority under this subtitle. “Property” includes any interest in real or personal property.

The General Assembly finds that: unemployment conditions exist in certain areas of the State; the establishment of vehicle parking facilities under this subtitle is necessary to relieve the unemployment conditions and establish a balanced economy in these areas; and the present and prospective health, happiness, safety, right of gainful employment, and general welfare in these areas will be promoted by the establishment of vehicle parking facilities under this subtitle. The General Assembly recognizes that, for certain areas of the State, this subtitle is necessary to: relieve unemployment conditions; encourage industrial growth and a balanced economy; help retain existing industries; promote economic development; and promote health, welfare, and safety.

This subtitle applies only to Baltimore City, Montgomery County, Prince George’s County, and each municipality.

A county or municipality may create a body politic and corporate known as the “Parking Authority of (insert name of county or municipality)”.

To create an authority, a county or municipality shall: pass a local law that establishes the charter for the authority; and file the charter with the Department of Assessments and Taxation, the Department of Legislative Services, and the Secretary of State.

A county or municipality may: amend the authority’s charter through local law if the amendment is filed with the Department of Assessments and Taxation, the Department of Legislative Services, and the Secretary of State; or change the structure or activity of or terminate the authority, unless the change or termination would impair an obligation of the authority under a pre–existing contract.

An authority consists of five members. By local law, a county or municipality shall establish residency requirements, means of appointment, qualifications, and terms of office for a member. Officers and employees of an authority shall be appointed as provided by local law.

An authority has the powers granted to it by local law, consistent with this subtitle, to allow it to carry out this subtitle. An authority may: use a common seal; sue and be sued; and perform corporate acts necessary to carry out this subtitle. By local law, a county or municipality shall establish the budgetary and financial procedures of an authority. An authority may adopt, in the manner provided by local law, rules and regulations for the operation and use of property and facilities under its jurisdiction. A person who violates a rule or regulation adopted by an authority is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 180 days or a fine not exceeding $1,000 or both.

A county or municipality may authorize an authority to: acquire by purchase, lease, or other legal means, but not by eminent domain, property of any kind in the county or municipality; establish, construct, alter, improve, equip, repair, maintain, operate, and regulate a facility for parking vehicles that is on, under, or in any property owned by the county, municipality, or the authority; and establish and collect fees for the use of the property.

Property owned or controlled by an authority is exempt from all taxation by the State, a political subdivision, or any other public unit.

The net earnings of an authority, other than those necessary to pay debt services or implement the public purposes of this subtitle, may not be used for the benefit of a person.

On termination of an authority, all property, obligations, and assets of the authority become the property, obligations, and assets of the county or municipality.

An act of an authority may not be challenged on the basis of the absence of qualifications of a member of the authority if the member has: been appointed by the appropriate entity designated by local law; and taken the oath of office.

To carry out the purposes of this subtitle, an authority may issue revenue bonds to finance the cost of: acquiring property; or establishing, constructing, altering, improving, or equipping a facility. Each bond issue shall be authorized by a resolution approved by a vote of at least four members of the authority. An authority shall determine that a bond issue is necessary to achieve one or more of the authority’s purposes before issuing bonds under this section. The resolution authorizing the bond issue shall include: the determination that a bond issue is necessary; a statement that the authority will acquire the vehicle parking facility or related project in accordance with this subtitle and local law; a determination of the probable useful life of the project or average probable useful life of the projects to be financed; an estimate of the cost of the project to be financed and the portion to be defrayed from any sources that shall be specifically named, other than the proposed bond issue; the procedure for the sale of the proposed bond issue; a description sufficient for purposes of identification of each of the projects to be financed by the bond issue; and a finding that the amount of the proposed bond issue is sufficient to complete at least a useful portion of each project to be financed. Notwithstanding any other provision of the Code or any recitals of the bond, the bonds are negotiable instruments.

If bonds are issued for projects having different probable useful lives, the authority shall consider the amount of the bonds to be issued for each project when it determines the average probable useful life of the projects. The determination under this section by an authority of probable useful life of the project or average probable useful life of the projects is conclusive.

By local law consistent with this subtitle, a county or municipality shall determine matters related to the authorization, issuance, sale, delivery, and payment of bonds, including: issue date; maturity; interest rate; terms; form; denomination; manner of execution; place of payment; redemption; refunding; sale price; manner of sale; and security.

By local law, a county or municipality may guarantee the bonds as to payment of principal, interest, and any redemption premium by the full faith and credit of the county or municipality. A municipality may not grant an authority independent taxing authority.

Bonds, the borrowing that they represent, the project being financed, or the guarantee of the county or municipality with respect to payment of the principal, interest, and redemption premium are not subject to any referendum requirements under a county charter, municipal charter, or local law.

Bonds are exempt from the conditions of sale requirements under §§ 19–205 and 19–206 of this article.

Bonds, transfer of the bonds, and the interest payable and income derived from the bonds are exempt from all State, county, and municipal taxation.

This subtitle is the Parking Authorities Act.