# Local Government (GLG) ## Title 21. Special Taxing Districts ### Subtitle 1. Commercial District Management #### Section 21-101 In this subtitle, "authority" means a commercial district management authority. #### Section 21-102 This subtitle applies to all counties except Baltimore City. #### Section 21-103 (a) 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. (b) The governing body of a county may establish an authority for any commercial district in the county. (c) For each authority established, the governing body of a county shall: (1) specify the membership, organization, jurisdiction, and geographical limits of the authority; (2) provide any financing that it considers appropriate for the authority through fees that may be charged to, or taxes that may be imposed against, businesses subject to the authority's jurisdiction; and (3) specify the purposes of the authority, including: (i) promotion; (ii) marketing; or (iii) the provision of security, maintenance, or amenities in the commercial district. #### Section 21-104 An authority may not: (1) exercise the power of eminent domain; (2) purchase, sell, construct, or lease, as a lessor, office or retail space; or (3) except as otherwise authorized by law, engage in competition with the private sector. #### Section 21-105 Any fee or tax imposed under this subtitle shall be used only for the purposes stated in this subtitle and may not revert to the general fund of a county. #### Section 21-106 The governing body of a county may establish an authority in accordance with this subtitle as a special taxing district. ### Subtitle 2. Erosion Prevention Projects #### Section 21-201 (a) In this subtitle the following words have the meanings indicated. (b) "District" means a taxing and assessment district. (c) "District council" means the governing body of a county acting as the district council for a district created under this subtitle. (d) "Project" means an erosion prevention project or erosion control project. #### Section 21-202 This subtitle supplements the provisions of the Natural Resources Article relating to shore erosion control projects. #### Section 21-203 The purpose of projects constructed under this subtitle is to prevent erosion of land by any body of water in the State. #### Section 21-204 (a) Each recorded subdivision that abuts a body of water in the State is a district. (b) Each district established under this section shall be named for the subdivision from which the district is created. #### Section 21-205 (a) The governing body of a county is the district council for each district in the county. (b) A district council shall: (1) keep a separate record of its proceedings for each district; and (2) deposit all money received for each district to the credit of that district. (c) (1) The district council shall require the depository of money under subsection (b)(2) of this section to give the same security for the repayment of money deposited and pay the same interest on the money as is required for the deposit of county funds. (2) Any interest earnings on money deposited for a district shall be credited to that district. #### Section 21-206 (a) (1) This section does not apply to: (i) the development and completion of plans and specifications for the construction of a project in a district in Anne Arundel County; (ii) the permitting activities associated with the project in Anne Arundel County; (iii) the preparation of a cost estimate for the project in Anne Arundel County; or (iv) the construction of a project in a district in Anne Arundel County. (2) This section may not be construed as limiting or restricting a district from accessing any money kept for the benefit of the district to pay for an activity identified under paragraph (1) of this subsection. (b) The district council may construct a project in a district if requested by a petition signed by at least 75% of the real property owners in the district. (c) (1) The entity administering a shore erosion control district may use tax funds for the maintenance, repair, or restoration of an existing project without a petition. (2) The entity administering a shore erosion control district shall conduct a public hearing before using tax funds for the maintenance, repair, or restoration of an existing project. (3) This subsection applies to any existing shoreline erosion control project within the district, regardless of the initial source of funding. #### Section 21-207 (a) This section does not apply to Anne Arundel County. (b) (1) When the plans and specifications for the construction of a project in a district are complete, the district council shall notify each owner of real property in the district: (i) that the plans and specifications for the construction of the project are complete and can be inspected at the office of the governing body of the county; (ii) of the probable cost of the project; and (iii) of the date and place of a hearing on the petition. (2) The notice shall be: (i) mailed to the last known address of each property owner in the district; and (ii) published once each week for 2 successive weeks in a newspaper of general circulation in the county. (c) After holding a hearing, the district council shall decide whether to proceed with the project. #### Section 21-208 (a) The district council may acquire an easement in any land or structure that is necessary to construct, extend, or maintain a project in the district. (b) (1) If the district council and property owner cannot agree on the acquisition of an easement in the owner's property, the district council may begin condemnation proceedings in the circuit court of the county, as provided in Title 12 of the Real Property Article. (2) (i) Subject to subparagraph (ii) of this paragraph, the district council may enter and take possession of the condemned property not less than 10 days after the recordation of the award in a condemnation proceeding under this subsection. (ii) Notwithstanding an appeal or further proceedings taken by a defendant in the condemnation proceeding, before taking possession of the condemned property, the district council shall: (1) pay the amount of the award and all costs imposed to the clerk of the court; and (2) give its corporate undertaking to abide by and fulfill any judgment on appeal or on further proceedings. #### Section 21-209 (a) The district council may borrow money, on the full faith and credit of the district, to: (1) acquire by purchase or condemnation an easement under Sec. 21-208 of this subtitle to construct a project in or for the district; and (2) complete the project. (b) (1) The money borrowed by the district council for a project shall: (i) bear interest at a rate set by the district council not exceeding 6% per year; (ii) be payable semiannually; and (iii) be secured by bonds, notes, or other evidence of indebtedness issued by the district council on the full faith and credit of the district. (2) Subject to Sec. 21-212(e)(2) of this subtitle, the bonds, notes, or other evidence of indebtedness issued under this subsection shall: (i) be exempt from State, county, and municipal taxation; (ii) mature serially at the times determined by the district council, not to exceed 30 years; (iii) be made payable within 30 years after issuance; and (iv) be issued under the seal of the county. (3) Notwithstanding Sec.Sec. 19-205 and 19-206 of this article, the district council may sell the bonds, notes, or other evidence of indebtedness at public or private sale. (c) (1) The governing body of the county shall guarantee the payment of principal of and interest on any bonds issued by the district council under this section. (2) The guaranty shall be endorsed on each bond in the following language: "The payment of interest when due and the principal at maturity is guaranteed by ..... County, Maryland." (3) Within 20 days after the bonds are ready for endorsement, the endorsement shall be: (i) signed on each bond by the chair of the governing body or the county executive, as applicable; (ii) attested to by the clerk of the governing body of the county; and (iii) affixed with the county seal. #### Section 21-210 (a) Except as otherwise provided in this section, this subtitle applies to any project undertaken and any bonds, notes, or other evidence of indebtedness issued under this section. (b) The purpose of this section is to provide an alternative means to finance projects on a countywide basis, for which the governing body of the county does not sit as a district council. (c) (1) The governing body of a county may pay not more than 25% of the cost of any project in the county through the issuance of bonds, notes, or other evidence of indebtedness. (2) If the governing body pays for a portion of a project under this subsection, the governing body may accept any of the remaining cost of the project from: (i) the State; (ii) the federal government; or (iii) any unit of the State or federal government. (d) (1) Except as provided in paragraph (2) of this subsection, any bond, note, or other evidence of indebtedness issued under this section shall be issued as provided in this subtitle. (2) Any bond, note, or other evidence of indebtedness issued under this section: (i) is not a district obligation; and (ii) shall have its payments of principal and interest met by a countywide tax. #### Section 21-211 (a) The district council shall publish notice once each week for 2 successive weeks in a newspaper of general circulation in the county or in technical press for bids for the construction of a project. (b) (1) The district council shall award the contract for a project to the lowest responsible bidder. (2) The district council may: (i) reject any and all bids for a contract for a project; and (ii) readvertise for bids, in accordance with and subject to this subtitle. (c) (1) Before awarding a contract for a project, the district council shall require from the successful bidder a bond in a form and amount approved by the district council. (2) The bond shall be conditioned on: (i) completing the project in accordance with the plans, specifications, and time limitations specified in the contract; and (ii) paying for all supplies and labor provided to the contractor in the construction of the project. #### Section 21-212 (a) After a project for a district has been completed, either wholly or partly, the district council shall impose a benefit charge on all real property in the district benefiting from the project. (b) (1) Before imposing the benefit charge, the district council shall notify each owner of real property in the district that the district council is proposing to make an assessment of benefit against the owner's property for the project. (2) The notice shall state the date and place of the hearing. (3) A hearing notice shall be: (i) mailed to the last known address of each property owner in the district; and (ii) published once each week for 2 successive weeks in a newspaper of general circulation in the county. (c) After holding a hearing under subsection (b) of this section, the district council shall: (1) determine the extent of the benefit from the project to each lot and parcel of land in the district; and (2) impose the benefit charge on each lot and parcel of land in the district based on the determinations made under item (1) of this subsection. (d) (1) A benefit charge imposed under this section is a lien on the real property against which the benefit charge is imposed. (2) The benefit charge shall be paid: (i) annually as county taxes are required to be paid; and (ii) for a period that is coextensive with the period of maturity for the bonds, notes, or other evidence of indebtedness issued to construct the project. (e) (1) This subsection applies only in: (i) Carroll County; (ii) Dorchester County; (iii) St. Mary's County; and (iv) Somerset County. (2) The annual benefit charge imposed under this section is payable in annual installments over 25 years or any shorter time as directed by the governing body of the county. (3) Each annual installment is a personal obligation of the owner of the benefited property at the time the installment becomes due. (4) (i) (1) An annual installment in default is a first lien on the benefited property, subject only to prior State, county, or municipal real property taxes. (2) The outstanding balance of a benefit charge shall be given normal lien priority. (ii) The sale of a benefited property does not extinguish the lien imposed against the property. (iii) The purchaser of a benefited property shall: (1) take ownership of the property subject to any outstanding balance of the total benefit charge unpaid at the conclusion of the sale; and (2) be required to pay the same annual installments as the previous owner of the property. (iv) For purposes of Sec. 3-104(b) of the Real Property Article, relating to the payment of taxes as a prerequisite to recording a transfer of property, it is sufficient that all current annual installments of any benefit charge imposed under this subtitle have been paid. #### Section 21-213 (a) (1) Each year, the district council shall impose a tax against all assessable property in each district that has been improved by a project. (2) Each year before the tax is imposed, the district council shall determine the number of cents per $100 necessary to raise the amount of money required under paragraph (3) of this subsection. (3) The amount of tax imposed under this subsection, together with the benefit charges collected under Sec. 21-212 of this subtitle, shall be sufficient to: (i) meet the interest and principal payments due on the bonds, notes, or other evidence of indebtedness issued to finance the construction of projects under this subtitle; (ii) pay the entire cost of repairing and maintaining the project in a district; and (iii) pay all the expenses of the district necessary to carry out this subtitle, including reimbursing the district council for expenses incurred by members of the district council, not exceeding $200 annually for each member, for: (1) inspecting bulkheads; and (2) performing other duties required in the administration of this subtitle. (4) The district council shall impose the tax required under this subsection until all the bonds, notes, or other evidence of indebtedness and their interest, in addition to other debt incurred in carrying out this subtitle, have been paid. (5) After the requirements of paragraph (4) of this subsection have been satisfied, the district council shall impose a tax sufficient only to maintain the project. (b) (1) The tax imposed under subsection (a) of this section shall: (i) be imposed in the same manner as county taxes; and (ii) have the same priority rights, bear the same interest and penalties, and in every respect be treated the same as county taxes. (2) The taxing authority of the county shall: (i) collect the taxes; and (ii) remit the amount collected to the district council every 60 days. (c) (1) The district council shall deposit money received under subsection (b) of this section in a bank in the county: (i) to the credit of the district council for the district from which the money was collected; and (ii) at the rate of interest paid for county funds. (2) The district council shall pay out the taxes and benefit charges collected from a district in the following order: (i) from the taxes and benefit charges: (1) the interest on the bonds, notes, or other evidence of indebtedness issued for the projects in the district; and (2) the bonds, notes, or other evidence of indebtedness when and as the bonds, notes, or other evidence of indebtedness mature; and (ii) from the remaining taxes, all other debt incurred in carrying out this subtitle, including project maintenance. (d) (1) If the receipts from the taxes and benefit charges imposed under this subtitle for any district do not meet the required payments in any year by reason of default or otherwise, the amount of the deficiency shall be added to the next year's tax imposition for that district. (2) Paragraph (1) of this subsection does not release a county from its obligation to impose ad valorem taxes on assessable property in the county at a rate and of an amount sufficient to pay the maturing principal of and interest on bonds. #### Section 21-214 (a) A person or agency may not: (1) fail to perform duties required under this subtitle; (2) fail to pay the principal of and interest on any bonds, notes, or other evidence of indebtedness as required by this subtitle; or (3) use the money from bonds, notes, or other evidence of indebtedness for any purpose other than the purpose specified under this subtitle. (b) A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 3 years or a fine not exceeding $1,000 or both. ### Subtitle 3. Shore Erosion Control Districts #### Section 21-301 This subtitle applies to property in one or more counties that abuts a body of water in the State. #### Section 21-302 Property subject to this subtitle may be formed into a shore erosion control district. #### Section 21-303 (a) The owners of 75% of the real property in a proposed district, or 75% of the owners of real property in a proposed district, may present a written petition to the governing body of each county where the property lies to request the creation of a shore erosion control district. (b) The petition shall describe the proposed boundaries of the shore erosion control district. (c) (1) On receipt of a petition, the governing body of the county shall refer the petition to the Department of Natural Resources. (2) (i) The Department of Natural Resources shall review the petition and submit a report to the governing body of the county. (ii) The report shall contain: (1) the Department's recommendation concerning the feasibility and need for a shore erosion control district; (2) a description of the area to be included in the shore erosion control district; (3) plans for erosion control; and (4) estimated costs for any projects recommended for erosion control. (d) On receipt of the report, the governing body of the county may: (1) establish the shore erosion control district; and (2) designate the area to be included in the shore erosion control district. #### Section 21-304 The governing body of a county may act as the district council for the shore erosion control district. #### Section 21-305 (a) The governing body of a county may finance and construct an erosion control project in a shore erosion control district in accordance with Subtitle 2 of this title. (b) Instead of the method of financing described under Sec. 21-209 of this title, the governing body of a county may use the method of financing provided by Sec. 21-210 of this title. #### Section 21-306 (a) The County Council of Anne Arundel County may impose a direct tax on property in a shore erosion control district to: (1) repay a loan made to the county by the State under Sec. 8-1005 of the Natural Resources Article for the construction of an erosion control project for the benefit of a shore erosion control district; and (2) pay for maintenance, repair, and reconstruction of erosion control projects. (b) A tax under this section: (1) shall be imposed and collected as county taxes are imposed and collected; (2) shall have the same priority rights, bear the same interest and penalties, and in every respect be treated the same as county taxes; and (3) may not apply to property that is exempt from taxation under Title 7, Subtitle 2 of the Tax - Property Article. ### Subtitle 4. Municipal Special Taxing Districts #### Section 21-401 For the purposes stated in Sec. 21-402 of this subtitle, a municipality may: (1) by ordinance or resolution, establish special taxing districts; and (2) impose ad valorem taxes on all real and personal property in a special taxing district at a rate sufficient to provide adequate annual revenues to pay: (i) the principal of and interest on any bonds or other obligations of the municipality issued for the purpose for which the special taxing district was established, as the principal and interest become due; and (ii) the costs of operating and maintaining facilities and activities for which the special taxing district was established. #### Section 21-402 The purpose of the authority granted under this part is to: (1) finance the establishment, acquisition, design, construction, alteration, improvement, extension, operation, and maintenance of: (i) adequate storm drainage systems; (ii) public parking facilities; (iii) pedestrian malls; (iv) street and area lighting; and (v) ride sharing and bus systems; (2) finance the capital and operating costs to enhance police, fire protection, and rescue services; and (3) provide financing for commercial district management authorities established under Sec. 5-214(b) of this article. #### Section 21-403 In a special taxing district established for financing a ride sharing or bus system, a municipality shall impose a combination of development impact fees and ad valorem taxes to finance, wholly or partly, the capital and operating costs of the ride sharing or bus system. #### Section 21-404 Ad valorem taxes imposed under this part shall be imposed in the same manner, on the same assessments, for the same period, and as of the same date of finality as required for municipal property tax purposes in the special taxing district. #### Section 21-407 (a) In this part the following words have the meanings indicated. (b) "Bond" means a revenue bond, note, or other similar instrument issued by a municipality in accordance with this part. (c) "Cost" includes the cost of: (1) construction, reconstruction, and renovation; (2) acquisition of structures, real or personal property, rights, rights-of-way, franchises, easements, and interests acquired or to be acquired by the Maryland Economic Development Corporation, the State, a unit or political subdivision of the State, or another governmental unit having jurisdiction over the infrastructure improvement; (3) machinery and equipment, including machinery and equipment needed to expand or enhance municipal services to a special taxing district; (4) financing charges and interest before and during construction and, if the municipality considers it advisable, for a limited period after completion of the construction; (5) interest and reserves for principal and interest, including the cost of municipal bond insurance and any other type of financial guaranty and costs of issuance; (6) extensions, enlargements, additions, and improvements; (7) architectural, engineering, financial, and legal services; (8) plans, specifications, studies, surveys, and estimates of costs and revenues; (9) administrative expenses necessary or incident in determining to proceed with infrastructure improvements; and (10) other expenses necessary or incident to acquiring, constructing, and financing infrastructure improvements. (d) "MEDCO obligation" means any debt instrument that the Maryland Economic Development Corporation issues for the purposes stated in Sec. 21-410(a)(2) of this subtitle. (e) "State hospital redevelopment" means any combination of private or public commercial, residential, or recreational uses, improvements, and facilities that: (1) is part of a comprehensive coordinated development plan or strategy involving property that: (i) was occupied formerly by a State facility, as defined in Sec. 10-101 of the Health - General Article, or a State residential center, as defined in Sec. 7-101 of the Health - General Article; or (ii) is adjacent or reasonably proximate to property that was occupied formerly by a State facility, as defined in Sec. 10-101 of the Health - General Article, or a State residential center, as defined in Sec. 7-101 of the Health - General Article; (2) in accordance with design development principles, maximizes use of the property by those constituencies it is intended to serve; and (3) is designated as a State hospital redevelopment by: (i) the Sustainable Growth Subcabinet established under Sec. 9-1406 of the State Government Article; and (ii) the local government or multicounty agency with land use and planning responsibility for the relevant area. (f) "Transit-oriented development" has the meaning stated in Sec. 7-101 of the Transportation Article. #### Section 21-408 (a) This part is self-executing and does not require a municipality to amend its charter to exercise the powers granted under this part. (b) The powers granted under this part: (1) are supplemental to any power granted by another law; and (2) do not limit any other power. (c) This part is necessary for the welfare of the State and its residents and shall be liberally construed to effect the purposes stated in Sec. 21-410(a) of this subtitle. #### Section 21-409 (a) For any purpose stated in Sec. 21-410(a)(1) of this subtitle, a municipality may: (1) establish a special taxing district; (2) impose ad valorem or special taxes; and (3) issue bonds. (b) (1) For any purpose stated in Sec. 21-410(a)(2) of this subtitle, a municipality may: (i) establish special taxing districts; (ii) impose ad valorem or special taxes; and (iii) pledge funds under an agreement to: (1) secure payment on MEDCO obligations; (2) pay the costs of infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment; and (3) pay the costs of operating and maintaining infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment. (2) An agreement pledging funds as described in paragraph (1)(iii) of this subsection shall: (i) be authorized by an ordinance or resolution of the municipality; (ii) be in writing; (iii) be executed on behalf of the municipality making the pledge, the Maryland Economic Development Corporation, and any other person or entity that the governing body of the municipality determines; and (iv) benefit, and be enforceable on behalf of, the holders of any MEDCO obligation secured by the agreement. (c) (1) Notwithstanding any other provision of law, a municipality may establish a special taxing district, issue bonds, or impose an ad valorem or special tax under this part only if a request to the municipality is made by both: (i) the owners of at least two-thirds of the assessed valuation of the real property located in the special taxing district; and (ii) at least two-thirds of the owners of the real property located in the special taxing district. (2) For purposes of paragraph (1)(ii) of this subsection: (i) multiple owners of a single parcel are treated as a single owner; and (ii) a single owner of multiple parcels is treated as one owner. #### Section 21-410 (a) The purpose of the authority granted under this part is to: (1) finance, refinance, or reimburse the cost of establishing, acquiring, designing, constructing, altering, or extending adequate infrastructure improvements as necessary for the development and use of land in any defined geographic region in the municipality, including storm drainage systems, sewers, water systems, roads, bridges, culverts, tunnels, sidewalks, lighting, parking, parks and recreation facilities, libraries, and schools; and (2) provide a source of funding for payment of costs of: (i) infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment; and (ii) operation and maintenance of infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment. (b) An infrastructure improvement financed under subsection (a)(1) of this section may be located: (1) in the special taxing district; (2) in the municipality, outside the special taxing district if the infrastructure improvement is reasonably related to other infrastructure improvements in the special taxing district; or (3) outside the municipality if: (i) the infrastructure improvement is reasonably related to other infrastructure improvements in the special taxing district; and (ii) notice is given to the governmental unit having jurisdiction over the infrastructure improvement. (c) For the purposes of this part and any authority granted by this part, a sustainable community, as defined in Sec. 6-201 of the Housing and Community Development Article, shall be considered the same as a transit-oriented development. #### Section 21-411 Unless otherwise provided in the charter, bylaws, or code of a municipality, before the governing body of a municipality enacts an ordinance or a resolution that establishes a special taxing district, authorizes the issuance of bonds, or imposes ad valorem or special taxes under this part, the governing body shall: (1) hold a public hearing; and (2) give notice of the public hearing in a newspaper of general circulation in the municipality at least 10 days before the date of the hearing. #### Section 21-412 (a) By resolution, the governing body of a municipality: (1) may designate an area as a special taxing district; and (2) shall create a special fund with respect to the special taxing district. (b) A resolution creating a special fund under subsection (a) of this section shall: (1) pledge to the special fund the proceeds of the ad valorem or special tax to be imposed as provided under Sec. 21-414 of this subtitle; and (2) require that the proceeds from the tax be paid into the special fund. #### Section 21-413 If no bonds authorized by this part are outstanding with respect to a special taxing district, the governing body of the municipality may use money in the special fund for: (1) any purpose specified in this part; (2) paying debt service on bonds to be issued later; (3) payment or reimbursement of debt service that the municipality is obligated under a general or limited obligation to pay, or has paid, on MEDCO obligations or any bond, note, or other similar instrument issued by the State or by any unit or political subdivision of the State, the proceeds of which were used for any purpose specified in this part; or (4) payment to the municipality to provide money for any legal purpose as determined by the governing body of the municipality. #### Section 21-414 (a) The governing body of a municipality may provide for the imposition of an ad valorem or special tax on all real and personal property in a special taxing district at a rate or amount designed to provide adequate revenue: (1) to pay the principal of, interest on, and any redemption premium on any bonds; (2) to replenish any debt service reserve fund; (3) for any other purpose related to the ongoing expenses of or security for bonds; (4) to pay costs of infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment; (5) pay costs of operating and maintaining infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment; or (6) to secure payment by the municipality of its obligations under an agreement described in Sec. 21-409(b) of this subtitle. (b) Ad valorem taxes under this part shall be imposed in the same manner, on the same assessments, for the same period, and as of the same date of finality as required for municipal property taxes in the special taxing district. (c) (1) As an alternative to imposing ad valorem taxes under this part, the governing body of a municipality may impose special taxes in accordance with this subsection on property in a special taxing district. (2) In determining the basis for and amount of a special tax, the cost of an improvement may be calculated and imposed: (i) equally per front foot, lot, parcel, dwelling unit, or square foot; (ii) according to the value of the property, with or without regard to improvements on the property; or (iii) in any other reasonable manner that results in a fair allocation of the cost of the infrastructure improvements. (3) The governing body of a municipality may enact an ordinance or resolution for: (i) the maximum amount of a special tax to be imposed on any parcel; (ii) the tax year or other date after which further special taxes under this part may not be imposed on a parcel; and (iii) whether, and the circumstances under which, a special tax on a parcel may be increased because of delinquency or default by the owner of that parcel or by the owner of any other parcel. (4) By ordinance or resolution, the governing body of a municipality may establish procedures allowing for the prepayment of special taxes under this part. (5) A special tax imposed under this part shall: (i) unless otherwise provided in an ordinance or a resolution, be collected and secured in the same manner as general ad valorem taxes; and (ii) in the case of delinquency, be subject to the same penalties, procedure, sale, and lien priority as general ad valorem taxes. #### Section 21-415 (a) A special taxing district established under this part shall be terminated if: (1) no bonds authorized by this part are outstanding with respect to the special taxing district; (2) no MEDCO obligations to which a municipality has pledged revenues under this part are outstanding with respect to the special taxing district; and (3) the governing body of the municipality determines not to use money in the special fund for payment of costs of: (i) infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment; or (ii) operating and maintaining infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment. (b) Any money remaining in the special fund on the date of termination of the special taxing district may be paid to the general fund of the municipality. #### Section 21-416 (a) The special fund and any sinking fund established by a municipality under this part are subject to Sec. 19-102 of this article. (b) The proceeds of bonds issued under this part are subject to Sec.Sec. 17-101 and 17-102 of this article. #### Section 21-417 (a) Notwithstanding any other law, a municipality may issue bonds as provided under this part for the purposes stated in Sec. 21-410(a)(1) of this subtitle. (b) To issue bonds under this part, the governing body of a municipality shall adopt an ordinance or resolution that: (1) describes the proposed undertaking; (2) states: (i) that the governing body has complied with Sec.Sec. 21-412 and 21-414 of this subtitle; (ii) the maximum principal amount of bonds to be issued; and (iii) the maximum rate of interest for the bonds; and (3) establishes a covenant to impose ad valorem or special taxes on all real and personal property in the special taxing district at a rate or in an amount sufficient to provide for the payment of the principal of and interest on the bonds in each year that the bonds are outstanding. (c) (1) For bonds to be issued to finance the proposed undertaking, the ordinance or resolution may specify: (i) the principal amount; (ii) the rate of interest; (iii) the manner and terms of sale; (iv) the time of execution, issuance, and delivery; (v) the form, purpose, and denominations; (vi) the manner in which and the times and places at which the principal of and interest on the bonds shall be paid; (vii) conditions for payment of principal of and interest on the bonds before maturity; or (viii) other provisions consistent with this part that the governing body of the municipality determines are necessary or desirable. (2) The ordinance or resolution may specify the items listed in paragraph (1) of this subsection or may authorize: (i) the municipality's finance board or other appropriate financial officer to specify those items by resolution; or (ii) the municipality's chief executive officer to specify those items by executive order. (d) The following may not be subject to a referendum because of any State or local law: (1) an ordinance or a resolution authorizing the bonds; (2) an ordinance, a resolution, or an executive order passed or adopted in furtherance of the ordinance or resolution authorizing the bonds; (3) the bonds; (4) the designation of a special taxing district; or (5) the imposition of ad valorem or special taxes. #### Section 21-418 (a) A bond issued under this part: (1) may be in bearer form or coupon 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 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 officer of the municipality. (2) The clerk or other similar administrative officer of the municipality shall attest to and affix the seal of the municipality to each bond. (3) An officer's signature or countersignature on a bond remains valid if the officer ceases to be an officer before delivery of the bond. (c) A bond shall mature not later than 30 years after the date of issuance. (d) (1) A municipality may sell bonds: (i) at a public or private sale; and (ii) in any manner and on any terms that the governing body of the municipality considers best. (2) A contract to acquire property may provide that payment shall be made in bonds. (3) Bonds are exempt from Sec.Sec. 19-205 and 19-206 of this article. #### Section 21-419 Bonds issued under this part are securities: (1) that may be deposited with and received by a unit of the State or a political subdivision 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 invest money: (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, or an investment company; (iii) an insurance company; and (iv) a personal representative, trustee, or other fiduciary. #### Section 21-420 (a) Bonds are payable from the special fund required under Sec. 21-412 of this subtitle. (b) The governing body of a municipality that issues bonds under this part may: (1) establish a sinking fund; (2) establish a debt service reserve fund; (3) pledge other assets and revenues toward the payment of the principal of and interest on the bonds; or (4) provide for municipal bond insurance or any other financial guaranty of the bonds. #### Section 21-421 Bond proceeds shall be used only to pay the cost of infrastructure improvements, including: (1) the cost of establishing, acquiring, designing, constructing, extending, or altering infrastructure improvements; (2) the cost of issuing bonds; (3) payment of the principal of and interest on loans, money advances, or indebtedness incurred by the municipality for any purpose stated in Sec. 21-410(a) of this subtitle, including refunding of bonds previously issued; and (4) funding of a debt service reserve fund or payment of interest before, during, or for a limited period of time after constructing the infrastructure improvements. #### Section 21-422 The principal amount of bonds, interest payable on bonds, the transfer of bonds, and any income from bonds, including profit made in the sale or transfer of bonds, are exempt from State and local taxes. ### Subtitle 5. Districts for Infrastructure Improvements for Selected Counties #### Section 21-501 (a) In this subtitle the following words have the meanings indicated. (b) "Bond" means a special obligation bond, a revenue bond, a note, or any other similar instrument issued in accordance with this subtitle by a county or the revenue authority of Prince George's County. (c) "Cost" includes the cost of: (1) (i) construction, reconstruction, and renovation; (ii) acquisition of structures, real or personal property, rights, rights-of-way, franchises, easements, and interests acquired or to be acquired by the Maryland Economic Development Corporation, the State, a unit or political subdivision of the State, or another governmental unit having jurisdiction over the infrastructure improvement; (iii) machinery and equipment, including machinery and equipment needed to expand or enhance county services to a special taxing district; (iv) financing charges and interest before and during construction and, if the county considers it advisable, for a limited period after completion of the construction; (v) interest and reserves for principal and interest, including the cost of municipal bond insurance and any other type of financial guaranty and costs of issuance; (vi) extensions, enlargements, additions, and improvements; (vii) architectural, engineering, financial, and legal services; (viii) plans, specifications, studies, surveys, and estimates of cost and revenues; (ix) administrative expenses necessary or incident to determining to proceed with infrastructure improvements; and (x) other expenses necessary or incident to acquiring, constructing, and financing infrastructure improvements; and (2) in Prince George's County, the cost of renovation, rehabilitation, and repair of existing buildings, internal and external structural systems, elevators, facades, mechanical systems and components, and security systems. (d) "MEDCO obligation" means any debt instrument that the Maryland Economic Development Corporation issues for the purposes stated in Sec. 21-504(a)(2) of this subtitle. (e) "State hospital redevelopment" means any combination of private or public commercial, residential, or recreational uses, improvements, and facilities that: (1) is part of a comprehensive, coordinated development plan or strategy involving property that: (i) was occupied formerly by a State facility, as defined in Sec. 10-101 of the Health - General Article, or a State residential center, as defined in Sec. 7-101 of the Health - General Article; or (ii) is adjacent or reasonably proximate to property that was occupied formerly by a State facility, as defined in Sec. 10-101 of the Health - General Article, or a State residential center, as defined in Sec. 7-101 of the Health - General Article; (2) in accordance with design development principles, maximizes use of the property by those constituencies it is intended to serve; and (3) is designated as a State hospital redevelopment by: (i) the Sustainable Growth Subcabinet established under Sec. 9-1406 of the State Government Article; and (ii) the local government or multicounty agency with land use and planning responsibility for the relevant area. (f) "Transit-oriented development" has the meaning stated in Sec. 7-101 of the Transportation Article. #### Section 21-502 (a) This subtitle applies only to: (1) a code county in the Eastern Shore class; (2) Anne Arundel County; (3) Baltimore County; (4) Calvert County; (5) Cecil County; (6) Charles County; (7) Garrett County; (8) Harford County; (9) Howard County; (10) Prince George's County; (11) St. Mary's County; (12) Washington County; and (13) Wicomico County. (b) This subtitle is self-executing and does not require a county to enact legislation or, if applicable, to amend its charter to exercise the powers granted under this subtitle. (c) The powers granted under this subtitle: (1) are supplemental to any power granted by another law; and (2) do not limit any other power. (d) This subtitle is necessary for the welfare of the State and its residents and shall be liberally construed to effect the purposes stated in Sec. 21-504(a) of this subtitle. #### Section 21-503 (a) For any purpose stated in Sec. 21-504(a)(1) of this subtitle, a county may: (1) establish a special taxing district; (2) impose ad valorem or special taxes; and (3) issue bonds. (b) (1) For any purpose stated in Sec. 21-504(a)(2) of this subtitle, a county may: (i) establish special taxing districts; (ii) impose ad valorem or special taxes; and (iii) pledge funds under an agreement to: (1) secure payment on MEDCO obligations; (2) pay the costs of infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment; and (3) pay the costs of operating and maintaining infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment. (2) An agreement pledging funds as described in paragraph (1)(iii) of this subsection shall: (i) be authorized by an ordinance or resolution of the county; (ii) be in writing; (iii) be executed on behalf of the county making the pledge, the Maryland Economic Development Corporation, and any other person or entity that the governing body of the county determines; and (iv) benefit, and be enforceable on behalf of, the holders of any MEDCO obligation secured by the agreement. (c) (1) Notwithstanding any other provision of law, a county may establish a special taxing district, issue bonds, or impose an ad valorem or special tax under this subtitle only if a request to the county is made by both: (i) the owners of at least two-thirds of the assessed valuation of the real property located in the special taxing district; and (ii) at least two-thirds of the owners of the real property located in the special taxing district. (2) For purposes of paragraph (1)(ii) of this subsection: (i) multiple owners of a single parcel are treated as a single owner; and (ii) a single owner of multiple parcels is treated as one owner. #### Section 21-504 (a) The purpose of the authority granted under this subtitle is to: (1) finance, refinance, or reimburse the cost of establishing, acquiring, designing, constructing, altering, or extending adequate infrastructure improvements as necessary for the development and use of land in any defined geographic region in the county, including storm drainage systems, sewers, water systems, roads, bridges, culverts, tunnels, sidewalks, lighting, parking, parks and recreation facilities, libraries, schools, transit facilities, and solid waste facilities; and (2) provide a source of funding for payment of costs of: (i) infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment; and (ii) operating and maintaining infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment. (b) An infrastructure improvement financed under subsection (a)(1) of this section may be located: (1) in the special taxing district; or (2) outside the special taxing district if the infrastructure improvement is reasonably related to other infrastructure improvements in the special taxing district. (c) For the purposes of this subtitle and any authority granted by this subtitle, a sustainable community, as defined in Sec. 6-201 of the Housing and Community Development Article, shall be considered the same as a transit-oriented development. #### Section 21-505 (a) Unless otherwise provided in the charter, bylaws, or code of a county, before the governing body of a county enacts an ordinance or resolution that establishes a special taxing district, authorizes the issuance of bonds, or imposes ad valorem or special taxes under this subtitle, the governing body shall: (1) hold a public hearing; and (2) give notice of the public hearing in a newspaper of general circulation in the county at least 10 days before the date of the hearing. (b) Before a county may establish as a special taxing district an area that is wholly or partly within a municipality or other county listed in Sec. 21-502(a) of this subtitle, the county shall get the consent of the governing body of the municipality or another county. #### Section 21-506 (a) By resolution, the governing body of a county: (1) may designate an area as a special taxing district; and (2) shall create a special fund with respect to the special taxing district. (b) A resolution creating a special fund under subsection (a) of this section shall: (1) pledge to the special fund the proceeds of the ad valorem or special tax to be imposed as provided under Sec. 21-508 of this subtitle; and (2) require that the proceeds from the tax be paid into the special fund. #### Section 21-507 If no bonds authorized by this subtitle are outstanding with respect to a special taxing district, the governing body of the county may use money in the special fund for: (1) any purpose specified in this subtitle; (2) paying debt service on bonds to be issued later; (3) payment or reimbursement of debt service that the county is obligated under a general or limited obligation to pay, or has paid, on MEDCO obligations or any bond, note, or other similar instrument issued by the State, any unit or political subdivision of the State, or the Revenue Authority of Prince George's County, the proceeds of which were used for any purpose specified in this subtitle; or (4) payment to the county to provide money for any legal purpose as determined by the governing body of the county. #### Section 21-508 (a) The governing body of a county may provide for the imposition of an ad valorem or special tax on all real and personal property in a special taxing district at a rate or amount designed to provide adequate revenue: (1) to pay the principal of, interest on, and any redemption premium on any bonds; (2) to replenish any debt service reserve fund; (3) for any other purpose related to the ongoing expenses of or security for bonds; (4) to pay costs of infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment; (5) to pay costs of operating and maintaining infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment; or (6) to secure payment by the county of its obligations under an agreement described in Sec. 21-503(b) of this subtitle. (b) Ad valorem taxes under this subtitle shall be imposed in the same manner, on the same assessments, for the same period, and as of the same date of finality as required for county property taxes in the special taxing district. (c) (1) As an alternative to imposing ad valorem taxes under this subtitle, the governing body of a county may impose special taxes in accordance with this subsection on property in a special taxing district. (2) In determining the basis for and amount of a special tax, the cost of an improvement may be calculated and imposed: (i) equally per front foot, lot, parcel, dwelling unit, or square foot; (ii) according to the value of the property, with or without regard to improvements on the property; or (iii) in any other reasonable manner that results in a fair allocation of the cost of the infrastructure improvements. (3) The governing body of a county may enact an ordinance or a resolution for: (i) the maximum amount of a special tax to be imposed on any parcel; (ii) the tax year or other date after which further special taxes under this subtitle may not be imposed on a parcel; and (iii) whether, and the circumstances under which, a special tax on a parcel may be increased because of delinquency or default by the owner of that parcel or by the owner of any other parcel. (4) By ordinance or resolution, the governing body of a county may establish procedures allowing for the prepayment of special taxes under this subtitle. (5) A special tax imposed under this subtitle shall: (i) unless otherwise provided in an ordinance or a resolution, be collected and secured in the same manner as general ad valorem taxes; and (ii) in the case of delinquency, be subject to the same penalties, procedure, sale, and lien priority as general ad valorem taxes. #### Section 21-509 (a) A special taxing district established under this subtitle shall be terminated if: (1) no bonds authorized by this subtitle are outstanding with respect to the special taxing district; (2) no MEDCO obligations as to which a county has pledged revenues under this subtitle are outstanding with respect to the special taxing district; and (3) the governing body of the county determines not to use money in the special fund for payment of costs of: (i) infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment; or (ii) operating and maintaining infrastructure improvements located in or supporting a transit-oriented development or a State hospital redevelopment. (b) Any money remaining in the special fund on the date of termination of the special taxing district shall be paid to the general fund of the county. #### Section 21-510 (a) The special fund and any sinking fund established by a county under this subtitle are subject to Sec. 19-102 of this article. (b) The proceeds of bonds issued under this subtitle are subject to Sec.Sec. 17-101 and 17-102 of this article. #### Section 21-511 (a) Notwithstanding any other law, a county may issue bonds as provided under this subtitle for the purposes stated in Sec. 21-504(a)(1) of this subtitle. (b) To issue bonds under this subtitle, the governing body of a county shall adopt an ordinance or a resolution that: (1) describes the proposed undertaking; (2) states: (i) that the governing body has complied with Sec.Sec. 21-506 and 21-508 of this subtitle; (ii) the maximum principal amount of bonds to be issued; and (iii) the maximum rate of interest for the bonds; and (3) establishes a covenant to impose ad valorem or special taxes on all real and personal property in the special taxing district at a rate or in an amount sufficient to provide for the payment of the principal of and interest on the bonds in each year that the bonds are outstanding. (c) (1) For bonds to be issued to finance the proposed undertaking, the ordinance or resolution may specify: (i) the principal amount; (ii) the rate of interest; (iii) the manner and terms of sale; (iv) the time of execution, issuance, and delivery; (v) the form, purpose, and denominations; (vi) the manner in which and the times and places at which the principal of and interest on the bonds shall be paid; (vii) conditions for payment of principal of and interest on the bonds before maturity; or (viii) other provisions consistent with this subtitle that the governing body of the county determines are necessary or desirable. (2) The ordinance or resolution may specify the items listed in paragraph (1) of this subsection or may authorize: (i) the county's finance board or other appropriate financial officer to specify those items by resolution; or (ii) the county's chief executive officer to specify those items by executive order. (d) The following may not be subject to a referendum because of any State or local law: (1) an ordinance or a resolution authorizing the bonds; (2) an ordinance, a resolution, or an executive order passed or adopted in furtherance of the ordinance or resolution authorizing the bonds; (3) the bonds; (4) the designation of a special taxing district; or (5) the imposition of ad valorem or special taxes. #### Section 21-512 (a) A bond issued under this subtitle: (1) may be in bearer form or coupon 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 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 officer of the county. (2) The clerk or other similar administrative officer of the county shall attest to and affix the seal of the county to each bond. (3) An officer's signature or countersignature on a bond remains valid if the officer ceases to be an officer before delivery of the bond. (c) A bond shall mature not later than 30 years after the date of issuance. (d) (1) A county may sell bonds: (i) at a public or private sale; and (ii) in any manner and on any terms that the governing body of the county considers best. (2) A contract to acquire property may provide that payment shall be made in bonds. (3) Bonds are exempt from Sec.Sec. 19-205 and 19-206 of this article. #### Section 21-513 Bonds issued under this subtitle are securities: (1) that may be deposited with and received by a unit of the State or a political subdivision 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 invest money: (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, or an investment company; (iii) an insurance company; and (iv) a personal representative, a trustee, or any other fiduciary. #### Section 21-514 (a) Bonds are payable from the special fund required under Sec. 21-506 of this subtitle. (b) Bonds issued under this subtitle are a special obligation of the county and are not a general obligation debt of the county or a pledge of the county's full faith and credit or taxing power. (c) The governing body of a county that issues bonds under this subtitle may: (1) establish a sinking fund; (2) establish a debt service reserve fund; (3) pledge other assets and revenues toward the payment of the principal of and interest on the bonds; or (4) provide for municipal bond insurance or any other financial guaranty of the bonds. #### Section 21-515 Bond proceeds shall be used only to pay the cost of infrastructure improvements, including: (1) the cost of establishing, acquiring, designing, constructing, extending, or altering infrastructure improvements; (2) the cost of issuing bonds; (3) payment of the principal of and interest on loans, money advances, or indebtedness incurred by the county for any purpose stated in Sec. 21-504(a) of this subtitle, including refunding bonds previously issued; and (4) funding of a debt service reserve fund or payment of interest before, during, or for a limited period of time after constructing the infrastructure improvements. #### Section 21-516 The principal amount of bonds, the interest payable on bonds, the transfer of bonds, and any income from bonds, including profit made in the sale or transfer of bonds, are exempt from State and local taxes. #### Section 21-519 A law enacted by Anne Arundel County under this subtitle: (1) shall specify the type of infrastructure and related costs that may be financed; (2) shall require: (i) reasonable disclosure in a real estate contract to buyers of real property in a special taxing district of any special assessment, special tax, or other fee or charge for which the buyer would be liable due to the special taxing district; and (ii) that, if a seller fails to provide the disclosure, the buyer may void the contract before the date of settlement; (3) shall require adequate debt service reserve funds to be maintained; (4) may provide: (i) for exemptions, deferrals, and credits; and (ii) for a lien to attach to property in a special taxing district to the extent of that property owner's obligation under any special taxing district financing; and (5) may not allow: (i) acceleration of assessments or taxes by reason of bond default; or (ii) an increase in the maximum special assessments, special taxes, or other fees or charges applicable to any individual property if other property owners become delinquent in paying a special assessment, a special tax, or any other fee or charge securing bonds issued under this subtitle. #### Section 21-520 (a) Except as provided in subsection (e) of this section, Cecil County may exercise the authority granted under this subtitle only in a designated growth area as defined in the county comprehensive plan. (b) (1) The governing body of Cecil County shall hold at least one public hearing on a bill establishing a special taxing district. (2) At the public hearing, the governing body may consider the following elements of a proposed development that would receive the proceeds of a bond: (i) development design standards; (ii) the use of transfer of development rights or other methods of increasing the density of development; (iii) design and use of open space; and (iv) availability and design of recreational and educational facilities. (c) A law enacted by Cecil County under this subtitle shall require that adequate debt service reserve funds be maintained. (d) Except as provided in subsection (e)(2) of this section and notwithstanding Sec. 21-503(c) of this subtitle, before Cecil County may establish a special taxing district, all of the owners of real property in the proposed special taxing district shall petition the county to establish the special taxing district. (e) For the purpose of providing Internet service, Cecil County may: (1) exercise the authority granted under this subtitle in the entirety of the unincorporated area of the county; (2) establish a special taxing district if property owners in the proposed special taxing district petition the county in accordance with Sec. 21-503(c) of this subtitle; and (3) impose ad valorem or special taxes and issue bonds under this subtitle. #### Section 21-521 (a) Charles County may exercise the authority granted under this subtitle to provide financing, refinancing, or reimbursement of costs for the purposes under Sec. 21-504(a) of this subtitle relating to the development of resort hotels and conference centers in a waterfront planned community. (b) (1) In addition to imposing ad valorem or special taxes under this subtitle, Charles County may impose a hotel rental tax in a special taxing district to provide financing, refinancing, or reimbursement of costs for the purposes under Sec. 21-504(a) of this subtitle relating to the development of resort hotels and conference centers in a waterfront planned community. (2) The taxes provided under this subtitle for payment of bonds and pledged to the special fund may include the hotel rental tax authorized under this subsection. (3) The hotel rental tax authorized under this subsection is in addition to the hotel rental tax authorized under Title 20, Subtitle 4 of this article. (4) The rate of the hotel rental tax authorized under this subsection may not exceed the rate of the hotel rental tax imposed under Title 20, Subtitle 4 of this article in effect on the day the governing body of Charles County establishes a special taxing district under this subtitle. (5) The proceeds from the hotel rental tax authorized under this subsection may be used only for the purposes authorized under this subtitle. (6) Charles County may not impose the hotel rental tax authorized under this subsection outside a special taxing district established under this subtitle. (c) (1) Charles County may exercise the authority granted under this subtitle to provide financing, refinancing, or reimbursement for the cost of: (i) convention centers, conference centers, and visitors' centers; (ii) maintaining infrastructure improvements, convention centers, conference centers, and visitors' centers; and (iii) marketing special taxing district facilities and other improvements. (2) Any financing, refinancing, or reimbursement provided under paragraph (1) of this subsection shall be contingent on the review and approval of the Board of County Commissioners of Charles County. (3) In exercising its authority under paragraph (1) of this subsection, Charles County may establish minority business enterprise participation goals for each development project wholly or partly financed through bonds issued under this subsection. #### Section 21-522 (a) (1) Except as provided in paragraph (2) of this subsection, Harford County may exercise the authority granted under this subtitle only in a designated growth area as defined in the county Master Plan and Land Use Element Plan. (2) Harford County may not exercise the authority granted under this subtitle in any rural village. (b) In Harford County, a special taxing district may be established only by a law enacted by the governing body of the county. (c) At a public hearing on a bill establishing a special taxing district, the governing body of Harford County may consider elements of a proposed development that would receive the proceeds of bonds, including: (1) development design standards; (2) the use of transfer of development rights or other methods of achieving density of development; (3) design and use of open space; and (4) availability and design of recreational and educational facilities. (d) A law enacted by Harford County establishing a special taxing district shall require that adequate debt service reserve funds be maintained. (e) Notwithstanding Sec. 21-503(c) of this subtitle, before Harford County may establish a special taxing district, all of the owners of real property in the proposed special taxing district shall petition the county to establish the special taxing district. #### Section 21-523 Prince George's County may exercise the authority granted under this subtitle to: (1) impose hotel rental taxes; and (2) provide financing, refinancing, or reimbursement for the cost of: (i) convention centers, conference centers, and visitors' centers; (ii) maintaining infrastructure improvements, convention centers, conference centers, and visitors' centers; (iii) marketing special taxing district facilities and other improvements; and (iv) renovating, rehabilitating, and repairing existing buildings, building systems, and components for existing residential condominiums designated as workforce housing, as defined in Sec. 4-1801 of the Housing and Community Development Article. ### Subtitle 6. Stormwater Management Districts -- Montgomery and Prince George's Counties #### Section 21-601 (a) In this subtitle the following words have the meanings indicated. (b) "Bond" means a bond, note, or other evidence of obligation. (c) "Commission" means the Washington Suburban Sanitary Commission. (d) "Sanitary district" has the meaning stated in Sec. 16-101 of the Public Utilities Article. (e) (1) "Stormwater management" means the planning, designing, acquisition, construction, demolition, maintenance, and operation of facilities, practices, and programs for the control and disposition of storm and surface water. (2) "Stormwater management" includes floodproofing, flood control, and navigation programs. (3) In Prince George's County, "stormwater management" also means the protection, conservation, regulation, creation, and acquisition of property described in Sec.Sec. 5-901(g) and 16-101(l) of the Environment Article, consistent with federal and State laws and regulations on the subject of nontidal and private wetlands. (f) "Stormwater management district" means a stormwater management district authorized under this subtitle. #### Section 21-602 This subtitle applies only in Montgomery County and Prince George's County. #### Section 21-603 (a) This subtitle shall be liberally construed to carry out its purposes. (b) This subtitle does not impair the rights and privileges vested in the holders of bonds issued by the Commission or Prince George's County for stormwater management. #### Section 21-606 (a) (1) Montgomery County may establish a stormwater management district that includes the land in its boundaries, except for the land in the City of Takoma Park. (2) In its stormwater management district, Montgomery County shall provide efficient stormwater management services to the residents and property owners of the stormwater management district with adequate facilities for development and promotion of safety for life and property. (3) The stormwater management services shall include those formerly performed by the Commission. (4) Montgomery County may not exercise stormwater management authority in the City of Takoma Park unless the city and county otherwise agree. (b) (1) The stormwater management district is a special taxing district for the purpose of stormwater management. (2) Montgomery County may establish one or more special taxing areas within its stormwater management district. #### Section 21-607 (a) (1) Prince George's County may establish a stormwater management district that includes the land in its boundaries, except for the land in the City of Bowie. (2) In its stormwater management district, Prince George's County shall provide efficient stormwater management services to the residents and property owners of the stormwater management district with adequate facilities for development and promotion of safety for life and property. (3) The stormwater management services shall include those formerly performed by the Commission. (4) Prince George's County may not exercise stormwater management authority in the City of Bowie unless the city and county otherwise agree. (b) (1) The stormwater management district is a special taxing district for the purpose of stormwater management. (2) Prince George's County may establish one or more special taxing areas in its stormwater management district. #### Section 21-608 The Commission may enter into agreements with Montgomery County and Prince George's County to perform stormwater management activities on behalf of each county as the county considers necessary and appropriate to maintain effective stormwater management programs in the stormwater management district. #### Section 21-611 Montgomery County, Prince George's County, and the City of Takoma Park shall have independent and supplemental authority to enact an ordinance or other legislation to issue bonds for the purposes provided in this subtitle. #### Section 21-612 (a) (1) Montgomery County, Prince George's County, and the City of Takoma Park may issue bonds in any amount that they consider necessary to provide money for their respective portions of the stormwater management programs and systems authorized under this subtitle. (2) The proceeds of bonds issued under paragraph (1) of this subsection shall be used for the planning, acquisition, construction, reconstruction, establishment, extension, enlargement, demolition, or purchase of facilities, including land, interests in land, or equipment, for stormwater management programs and systems. (b) (1) (i) Bonds of the City of Takoma Park authorized by this subtitle may be issued in conjunction with bonds of Prince George's County authorized by this subtitle in the manner provided by resolutions of the City Council of the City of Takoma Park and the County Council of Prince George's County, subject in each case to approval of bond counsel for the respective jurisdiction. (ii) The resolutions may include procedures for a joint or coordinated offering or sale of the bonds. (2) (i) Prince George's County may issue bonds authorized by this subtitle payable from the ad valorem taxes authorized by Sec. 21-623(a) of this subtitle for the benefit of the City of Takoma Park for the same purposes for which the City of Takoma Park may issue bonds under this subtitle in connection with systems located in the City of Takoma Park, subject to the approval of bond counsel for Prince George's County. (ii) The bonds authorized by this paragraph shall be approved by appropriate resolutions of the City Council of the City of Takoma Park and the County Council of Prince George's County. (iii) The resolutions shall provide for the lending of the appropriate portion of the proceeds of the bonds by Prince George's County to the City of Takoma Park and the repayment of the loan by the City of Takoma Park to Prince George's County in the amounts and at the times necessary to enable Prince George's County to make all payments of principal of and interest on the bonds when due, including the proportionate part of any principal of any outstanding sinking fund bonds, as determined by the table of redemption of bonds for bonds issued by Prince George's County for the benefit of the City of Takoma Park for stormwater management under this subtitle. #### Section 21-613 Bonds issued under this part: (1) are general obligation bonds of the issuing authority that are fully registered as to both principal and interest when approved by ordinance or other legislative act of the county or city; (2) shall bear interest payable at any time and at any annual rate as provided or authorized by legislative act; (3) may not mature later than 40 years from the date of their issue; (4) may be made redeemable before maturity at the option of the issuing authority, at any price and under any terms and conditions that are set before their issuance; (5) shall have any other terms and provisions and be otherwise issued as provided or authorized by legislative act; and (6) shall be sold in any manner, either at a public or private negotiated sale, and on any terms, at, above, or below par, as provided or authorized by legislative act. #### Section 21-614 Bonds issued under this part, a transfer of the bonds, the interest payable on the bonds, and any income derived from the bonds, including any profit realized in the sale or exchange of the bonds, are exempt from taxation by the State or by any county, municipality, or other public unit of the State. #### Section 21-615 Bonds authorized by this part and the issuance and sale of the bonds are exempt from Sec.Sec. 19-205 and 19-206 of this article. #### Section 21-616 (a) Bonds authorized by this part are, and shall state, an irrevocable pledge of the full faith and credit and unlimited taxing power of the issuing authority to the payment of the maturing principal of and interest on the bonds as and when the bonds become payable. (b) The bonds shall be payable first from the stormwater management fund of the issuing authority. (c) To the extent a stormwater management fund is insufficient to pay the principal, interest, and redemption premium, if any, on the bonds, the issuing authority shall impose ad valorem taxes, unlimited as to rate or amount, on all assessable property in the stormwater management district in an amount sufficient to provide for the payment of the principal, interest, and redemption premium, if any, when due. #### Section 21-617 Notwithstanding any limitation or provision of any charter or local law regulating the creation of public debts or the financing of capital projects, bonds issued under this part, the borrowing that the bonds represent, the pledge of the full faith and credit of the issuing authority or any other guarantee of the issuing authority, and the programs or projects being financed are not subject to: (1) any referendum requirement of the charter or local law of the authority issuing the bonds or in which the programs or projects are located; (2) any limitation of the charter or local law on the rate of taxation or the aggregate amount of taxes that may be imposed by the issuing authority; or (3) any requirement of charter or local law as to the form or public sale of the bonds. #### Section 21-618 (a) Bonds issued by Montgomery County or Prince George's County to provide money for stormwater management remain valid, binding, and enforceable in accordance with their terms, including any provision for a maturity date beyond June 30, 1990. (b) Notwithstanding the repeal, expiration, or termination after the date of issuance of the bonds of the authority under which the bonds were issued, the rights of the bondholders and the responsibilities and obligations of Montgomery County or Prince George's County with respect to the bonds may not be impaired and shall remain in full force and effect. (c) The responsibility of Montgomery County or Prince George's County includes the responsibility to repay the bonds and to impose taxes for or otherwise guarantee the payment of the bonds. #### Section 21-621 (a) This part does not impair the rights of Prince George's County or the City of Bowie to contract with each other for the provision of stormwater management. (b) This part does not impair the rights of Prince George's County or the City of Takoma Park to contract with each other, or with other parties, for the provision of stormwater management. #### Section 21-622 (a) (1) In the stormwater management district, Prince George's County may require an owner or developer of a subdivision or tract of land on which buildings are to be erected to contribute what the county determines to be a fair share of the cost of a stormwater management project before the county approves or constructs the project. (2) In the City of Bowie, the city may require an owner or developer of a subdivision or tract of land on which buildings are to be erected to contribute what the city determines to be a fair share of the cost of a stormwater management project before the city approves or constructs the project. (3) In the City of Takoma Park, the city may require an owner or developer of a subdivision or tract of land on which buildings are to be erected to contribute what the City Council determines to be a fair share of the cost of a stormwater management project in the city's jurisdiction before the City Council approves the project for construction. (4) In Montgomery County, except for property in the City of Takoma Park, the Montgomery County Council may require an owner or developer of a subdivision or tract of land on which buildings are to be erected to contribute what the County Council determines to be a fair share of the cost of a stormwater management project in the county's jurisdiction before the County Council approves the project for construction. (5) Before construction begins, the contribution shall be paid in cash or secured to the satisfaction of the approving authority. (b) Montgomery County, Prince George's County, the City of Bowie, and the City of Takoma Park each may construct in its boundaries any part of an approved stormwater management project if the owner or developer contributes a share of the cost of the project considered appropriate by the approving authority. (c) Montgomery County, Prince George's County, the City of Bowie, and the City of Takoma Park each shall include in its annual capital budget for stormwater management capital projects an amount representing anticipated contributions to stormwater management. #### Section 21-623 (a) Except as otherwise provided in this subtitle, Montgomery County and Prince George's County each may impose an ad valorem tax on all property assessed for tax purposes in the stormwater management district at a rate required to produce the amount needed to pay for: (1) maintenance of stormwater management systems in the stormwater management district that were maintained by the Commission before July 1, 1987, and systems established by each county on or after July 1, 1987; (2) the principal and interest that becomes due and owing to the bondholders during the following year and the proportionate part of the principal of all outstanding sinking fund bonds, as determined by the table of redemption of bonds for bonds issued by: (i) the Commission for stormwater management; and (ii) the county for stormwater management under this subtitle; and (3) the cost of stormwater management activities and practices in the stormwater management district, as approved in the county's annual stormwater management budget and appropriations resolution for the following fiscal year. (b) (1) The Commission shall certify annually to each county the amount necessary to produce the sum required to pay the principal, interest, and other obligations for the current year on the outstanding bonds issued by the Commission to pay for stormwater management projects in the county's stormwater management district. (2) The county shall pay the amount certified under paragraph (1) of this subsection. (c) (1) Except as provided in paragraph (2) of this subsection, the taxes authorized by this section shall be imposed and collected in the same manner, have the same priority, bear the same interest, and be treated in all respects as other county taxes. (2) (i) Notwithstanding any provision of charter or other law, the taxes may not be subject to a limitation on the tax rate or tax revenues of the county. (ii) The tax revenues shall be deposited and maintained in a separate stormwater management fund established under Sec. 21-627 of this subtitle. (iii) The tax revenues deposited in the fund shall be in addition to all other county taxes and may not be considered county taxes for the purpose of applying the limitations in Article VIII, Sec. 812 of the Prince George's County Charter. #### Section 21-624 (a) This section applies only in Montgomery County. (b) Subject to subsections (c)(1) and (d) of this section, the County Council of Montgomery County shall impose an ad valorem tax on all property assessed for tax purposes in the county, including property in any municipality in the county. (c) (1) Except for the City of Takoma Park, the ad valorem tax may not exceed: (i) (0) 4 cent per $100 of the assessed value of real property; or (ii) 1 cent per $100 of the assessed value of personal property and operating real property described in Sec. 8-109(c) of the Tax - Property Article. (2) The tax shall be in an amount necessary to pay for the maintenance of: (i) stormwater management systems in the part of the sanitary district in Montgomery County that were previously maintained by the Commission; and (ii) on application of a municipality, any stormwater management system previously maintained by the municipality. (d) (1) If a municipality decides to maintain all existing stormwater management systems in its boundaries, the municipality shall notify the county council of its intent to maintain the stormwater management systems before the date on which the county council adopts its annual budget. (2) If the conditions set forth in paragraph (1) of this subsection are met, all assessable properties in the municipality shall be exempt from the tax imposed under this section. (e) (1) The county shall maintain every interest in stormwater easements, structures, and other properties in the county, whether or not established by plat, that were transferred by deed to the county. (2) The Commission and any municipality in the county shall allow the county to enter and exit over any fee, leasehold, easement, or right-of-way of the Commission or municipality to maintain any stormwater easement, structure, or other property. #### Section 21-625 (a) Except as otherwise provided in this subtitle, the City of Takoma Park may impose an ad valorem tax on all property assessed for tax purposes in the city at a rate required to produce the amount needed to pay for: (1) maintenance of stormwater management systems in the city that were maintained by the Commission before July 1, 1990, and systems established by the city on or after July 1, 1990; (2) the principal and interest that becomes due and owing to: (i) the bondholders during the following year and the proportionate part of the principal of all outstanding sinking fund bonds, as determined by the table of redemption of bonds for bonds issued by or on behalf of the city on or after July 1, 1990, for stormwater management under this subtitle; and (ii) Prince George's County with respect to the repayment of any loan made by the county to the City of Takoma Park under Sec. 21-612(b) of this subtitle; and (3) the cost of stormwater management activities and practices in the city, as approved in the city's annual stormwater management budget and appropriations resolution for the following fiscal year. (b) In lieu of the ad valorem taxes authorized by subsection (a) of this section, the City of Takoma Park may adopt a stormwater management utility fee system or user charges to pay the costs of stormwater management activities and projects based on factors such as land use, amount of runoff, conservation, and environmental and other considerations. (c) (1) Except as provided in paragraph (2) of this subsection, the taxes authorized by this section shall be imposed and collected in the same manner, have the same priority, bear the same interest, and be treated in all respects as other taxes imposed by the City of Takoma Park. (2) (i) Notwithstanding any provision of the charter, laws, or ordinances of the City of Takoma Park, the taxes may not be subject to a limitation on the tax rate or tax revenues of the city. (ii) The tax revenues, user charges, and utility fees shall be deposited and maintained in a separate stormwater management fund established under Sec. 21-628 of this subtitle. #### Section 21-626 (a) Property owned by the State or a unit of State government, a county, a municipality, or a regularly organized volunteer fire department that is used for public purposes is exempt from the taxes, user charges, and utility fees imposed under this part. (b) Property that is not in a stormwater management district or is not otherwise provided direct or indirect stormwater management services in a stormwater management district may not have a tax imposed by the county until the county acquires, extends, or begins to provide stormwater management services, facilities, or programs to the property. #### Section 21-627 (a) On establishing a stormwater management district, Montgomery County and Prince George's County each shall: (1) establish a stormwater management fund; and (2) deposit in the fund: (i) receipts and revenues from an ad valorem tax imposed under Sec. 21-623 of this subtitle; and (ii) charges, fees, fees-in-lieu, and other contributions received from any person or governmental unit in connection with stormwater management activities or practices. (b) Money in a county stormwater management fund shall be used only to pay for the costs of stormwater management as set forth in Sec. 21-623(a) of this subtitle. #### Section 21-628 (a) The City of Takoma Park shall: (1) establish a stormwater management fund; and (2) deposit in the fund: (i) receipts and revenues from any ad valorem tax, user charge, or utility fee imposed under Sec. 21-625 of this subtitle; and (ii) charges, fees, fees-in-lieu, and other contributions received from any person or governmental unit in connection with stormwater management activities or practices. (b) Money in the Takoma Park stormwater management fund shall be used only to pay for the costs of stormwater management as set forth in Sec. 21-625(a) of this subtitle. #### Section 21-629 (a) If land in the Prince George's County stormwater management district is annexed by the City of Bowie or the City of Takoma Park, the land is no longer part of the county stormwater management district. (b) (1) Subject to paragraph (2) of this subsection, the annexing municipality is responsible for stormwater management in the annexed area. (2) Prince George's County shall impose and collect from the annexed property an ad valorem tax at a rate sufficient to pay the principal, interest, and other obligations on outstanding bonds issued by the Commission or Prince George's County for stormwater management before the annexation. #### Section 21-632 (a) Each county and the City of Takoma Park is responsible for the maintenance of stormwater management systems or parts of systems located in its stormwater management district and transferred to it under this subtitle. (b) The Commission and any municipality in Montgomery County or Prince George's County shall allow the county to enter and exit over any fee, leasehold, easement, or right-of-way of the Commission or the municipality to maintain any stormwater management easement, structure, or other property. #### Section 21-633 (a) Except as provided in subsection (b) of this section, the county where the project is located shall maintain every stormwater management system and part of every system that: (1) was constructed by the Commission or the county or accepted for maintenance by the Commission or the county; and (2) is located in a street, an alley, a public way, or a public space. (b) Unless the county agrees otherwise: (1) a stormwater management system that is located on real property owned by the Maryland-National Capital Park and Planning Commission shall be maintained by the Maryland-National Capital Park and Planning Commission; and (2) a stormwater management system or facility that is located in a road maintained by the State Highway Administration shall be maintained by the State. #### Section 21-634 On or after July 1, 1990, the City of Takoma Park shall maintain every stormwater management system and part of every system that: (1) was constructed by the Commission or accepted for maintenance by the Commission within the City of Takoma Park before July 1, 1990; and (2) is located in a street, an alley, a public way, or a public space. #### Section 21-637 (a) In the review and approval by Montgomery County, Prince George's County, or the City of Takoma Park of the requirements for storm drainage or stormwater management, the county or city may require the owner of land to be developed to: (1) provide easement areas or on-site stormwater management facilities; and (2) agree to construct the necessary facilities or provide for the construction by posting a bond in an amount sufficient to construct the stormwater management facilities that the county or city considers necessary. (b) (1) If the county or the City of Takoma Park decides to construct stormwater management facilities to serve more than one development or if the county or city agrees to allow the owner or developer to construct a stormwater management system, the county or city may enter into an agreement with the developers of new developments for payment by the developers of a fee in lieu of on-site stormwater management facilities. (2) The fee in lieu of on-site stormwater management facilities shall be based on an equitable pro rata share of the net cost of the facilities after deducting any State or federal grants applied to the construction of the facilities. (c) The county or the City of Takoma Park may require the owner's bond or the contribution of a pro rata share of the net cost for the construction of facilities in adjacent or nearby land in the same drainage area that the county or city may determine will be required because of the development of the owner's land. (d) Easements required by the county or the City of Takoma Park shall have the restrictions that the county or city may require as to: (1) grading; and (2) prohibiting structures, fences, or plantings on the easement area. (e) (1) The Maryland-National Capital Park and Planning Commission may not approve a plat for subdivision of land until it ascertains from the county, the City of Bowie, or the City of Takoma Park, whichever is appropriate, whether easement areas for stormwater management facilities are required. (2) If easement areas are required, the Maryland-National Capital Park and Planning Commission may not approve the plat for recordation until the easements are included on the plat. #### Section 21-638 (a) Montgomery County, Prince George's County, the City of Bowie, the City of Takoma Park, and any person or municipality may not adopt a stormwater management plan, system, or design in these jurisdictions, including a capital improvement program for stormwater management, unless: (1) the stormwater management plan or design is in accordance with the 6-year capital improvement program of the jurisdiction responsible for stormwater management in the affected area and is approved by that jurisdiction; or (2) the plan, system, or design is intended to protect an individual's home and has no adverse impact on other properties or stormwater management systems. (b) (1) (i) If Montgomery County, Prince George's County, the City of Bowie, or the City of Takoma Park prepares a stormwater management plan, system, or design, or if a stormwater management plan, system, or design has been submitted to Montgomery County, Prince George's County, the City of Bowie, or the City of Takoma Park, the city or county shall submit a copy of the plan, system, or design to the Commission. (ii) After the submission, the Commission shall have a specified, reasonable time to review and comment on the plan, system, or design to the city or county to indicate any conflict in the plan, system, or design with the existing or planned water supply or sanitary sewer systems of the Commission. (iii) The stormwater management system or design approved by Montgomery County, Prince George's County, the City of Bowie, or the City of Takoma Park shall be consistent with the Commission's comments. (2) (i) When the Commission receives a copy of a plan from the City of Bowie, the Commission promptly shall provide a copy to the County Council and County Executive of Prince George's County for review and comment. (ii) When the Commission receives a copy of a plan from the City of Takoma Park, the Commission promptly shall provide a copy to the County Council and County Executive of Montgomery County for review and comment. (3) When Prince George's County receives a plan that provides for drainage into a storm drain or stormwater management facility of the City of Bowie or onto any easement of the City of Bowie, the county promptly shall provide a copy of the plan to the City of Bowie for review and comment. (c) (1) If the Commission or Prince George's County, after reviewing a plan submitted by the City of Bowie, advises the city that the Commission or county finds that construction in accordance with the plan will cause stormwater runoff problems in the maintenance of existing facilities or construction and maintenance of planned facilities, the city may not authorize construction to begin until the matter is resolved. (2) If the Commission or Montgomery County, after reviewing a plan submitted by the City of Takoma Park, advises the city that the Commission or county finds that construction in accordance with the plan will cause stormwater runoff problems in the maintenance of existing facilities or construction and maintenance of planned facilities, the city may not authorize construction to begin until the matter is resolved. #### Section 21-641 (a) All property of the Commission that the Commission and the applicable county mutually determine to be used primarily for stormwater management is deemed transferred effective July 1, 1987, to that county as provided in this section. (b) All property of the Commission that the Commission and the City of Takoma Park mutually determine to be used primarily for stormwater management is deemed transferred effective July 1, 1990, to the City of Takoma Park as provided in this section. (c) (1) The Commission shall execute instruments of transfer as necessary to evidence the transfers. (2) All real and personal property, including all fees, leaseholds, easements, rights-of-way, buildings, fixtures, systems, and equipment, owned or held by the Commission for the primary purpose of stormwater management is transferred to the county in which the property is located or affixed or to the City of Takoma Park if the property is located in or affixed to the City of Takoma Park. (3) All tangible and intangible personal property, including all equipment, construction materials, fees, fees-in-lieu, contributions, reserve funds, sinking funds, contracts, agreements, claims, demands, and actions, owned or held by the Commission for the primary purpose of stormwater management is transferred to the county in which is located the real property to which the personal property relates or to the City of Takoma Park if the real property to which the personal property relates is located in the City of Takoma Park or, if unrelated to specific property, is transferred in proportion to the real property acreage transferred to each county or to the City of Takoma Park under this section. (d) Notwithstanding this section, the Commission shall retain sufficient funds to pay for debt service accruing before October 1, 1987, on outstanding bonds issued by the Commission for stormwater management and the undepreciated cost of the moveable assets transferred. (e) (1) The transfer of property under this section does not impair the rights of holders of bonds issued by the Commission for stormwater management or the responsibility of the Commission for the repayment of the bonds or the responsibility of the counties to impose taxes for or otherwise guarantee the repayment of the bonds. (2) The City of Takoma Park is not responsible for payment to the Commission for debt service on any bonds issued by the Commission outstanding on June 30, 1990. #### Section 21-644 (a) (1) This subsection does not apply to Sec. 21-624 of this subtitle. (2) Except as provided in subsection (b) of this section, a person who violates the provisions of this subtitle is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 30 days or a fine not exceeding $1,000 or both. (b) A person who violates Sec. 21-633, Sec. 21-634, or Sec. 21-637 of this subtitle is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 30 days or a fine not exceeding $500 or both. (c) A person may be convicted of a second or subsequent violation of a provision of this subtitle or a regulation adopted under this subtitle. ### Subtitle 7. Districts for Transportation Improvements #### Section 21-701 (a) (1) In this section the following words have the meanings indicated. (2) "Cost" has the meaning stated in Sec. 21-501 of this title. (3) "County tax limitation" means a provision of a county charter that limits: (i) the maximum property tax rate that a county may impose; or (ii) the rate of growth of county property tax revenues. (4) "County transportation improvement" includes: (i) for county roads and highways: (1) a county right-of-way, roadway surface, roadway subgrade, shoulder, median divider, drainage facility or structure, related stormwater management facility or structure, roadway cut, roadway fill, guardrail, bridge, highway grade separation structure, tunnel, overpass, underpass, interchange, entrance plaza, approach, or other structure forming an integral part of a street, road, or highway, including a bicycle or walking path, designated bus lane, sidewalk, pedestrian plaza, streetscaping, or related infrastructure; or (2) any other property acquired for the construction, operation, or use of the highway; and (ii) for a county transit facility, any one or more or combination of tracks, rights-of-way, bridges, tunnels, subways, rolling stock, stations, terminals, ports, parking areas, equipment, fixtures, building structures, other real or personal property, or services incidental to or useful or designed for use in connection with the rendering of transit service by any means, including rail, bus, motor vehicle, or other mode of transportation, but does not include any railroad facility. (5) "Special taxing district" means a defined geographic area designated by a county within which ad valorem or special taxes are imposed to finance the cost of infrastructure improvements. (6) "State transportation improvement" includes a highway facility, a transit facility, and related infrastructure. (7) "Transit facility" has the meaning stated in Sec. 3-101(k) of the Transportation Article. (b) A county tax limitation that would otherwise apply to ad valorem or special taxes imposed only in a special taxing district does not apply for the purpose of financing the cost of State transportation improvements or county transportation improvements. #### Section 21-702 (a) (1) In this section the following words have the meanings indicated. (2) "Bond" means a special obligation bond, note, or other similar instrument issued by a county under this section. (3) "Cost" means any expense necessary or incident to acquiring, building, or financing any transportation improvement as may be provided by the local law authorized under subsection (b) of this section. (4) (i) "Special tax" means an ad valorem or a special tax, an assessment, a fee, or a charge imposed by a county in a special taxing district. (ii) "Special tax" does not include an ad valorem or a special tax, an assessment, a fee, or a charge imposed under Chapter 20A of the Montgomery County Code. (5) (i) "Special taxing district" means a special taxing district, special assessment district, or similar defined geographical area in a county in which the county is authorized to impose a special tax. (ii) "Special taxing district" does not include a development district created under Chapter 20A of the Montgomery County Code. (6) "Transportation improvement" means a State transportation improvement or a county transportation improvement as defined in Sec. 21-701 of this subtitle. (b) Notwithstanding any other public general law, public local law, or charter of a charter county, a county may enact a law to provide for the issuance of bonds to finance the cost of transportation improvements for which the principal, interest, and any premium shall be paid from and secured by special taxes collected by the county in a special taxing district. (c) (1) Bonds issued under this section are special obligations of the county and do not constitute a general obligation debt of the county or a pledge of the county's full faith and credit or general taxing power. (2) Bonds issued under this section may be sold in any manner, either at public or private sale, and on terms as the county considers best. (3) Bonds issued under this section are not subject to Sec.Sec. 19-205 and 19-206 of this article. (4) Bonds issued under this section, their transfer, the interest payable on them, and any income derived from them, including any profit realized on their sale or exchange, are exempt from taxation by the State, a county, or a municipality. (5) Bonds issued under this section shall be treated as securities to the same extent as bonds issued under Subtitle 5 of this title. (d) In addition to the special taxes, bonds issued under this section may be secured by other revenues generated in the special taxing district. (e) This section, being necessary for the welfare of the State and its residents, shall be liberally construed to effect its purposes. ### Subtitle 8. Miscellaneous Provisions #### Section 21-801 (a) This section applies to all counties except Baltimore City. (b) The governing body of a county may: (1) provide for street lighting along the roads of the county; and (2) enter into contracts for the installation, maintenance, and operation of street lighting. (c) Except as provided in subsections (g) and (h) of this section, a county shall pay the costs of street lighting provided for under this section by an ad valorem tax imposed on each property in the district served by the street lighting. (d) (1) Except as provided in subsections (e) and (f) of this section, the governing body of a county may create a street lighting district only on receipt of a petition signed by 60% of the owners of property located in the proposed district. (2) The petition shall describe the boundaries of the proposed electric lighting district. (3) (i) On receipt of the petition, the governing body of the county shall hold a public hearing at which the residents in the proposed street lighting district shall be given an opportunity to be heard. (ii) The governing body shall: (1) hold the hearing not less than 14 days nor more than 60 days following receipt of the petition; and (2) publish notice of the hearing at least once in a newspaper of general circulation in the boundaries of the proposed street lighting district. (4) (i) After the hearing the governing body of the county may establish the street lighting district and impose on all property that is subject to county taxes and is located in the district ad valorem taxes at a rate sufficient to pay the cost of the street lighting. (ii) All taxes under this subsection shall be imposed in the same manner as county taxes. (e) (1) In addition to the process set forth under subsections (b), (c), and (d) of this section, the County Commissioners of Frederick County may create, on their own initiative, a street lighting district for undeveloped land in the county if: (i) a subdivision plat for the land has not been approved by the County Planning Commission or recorded by the clerk of the court; and (ii) the district is created in accordance with paragraph (2) of this subsection. (2) (i) Before establishing a street lighting district under this section, the county commissioners shall hold a public hearing on the proposal, at which time the boundaries of the proposed district shall be fully described. (ii) A notice of public hearing together with a summary of the proposal shall be published in at least one newspaper of general circulation in the county once each week for the 2 successive weeks immediately before the hearing. (f) The County Commissioners of St. Mary's County may create a street lighting district on receipt of a petition signed by a majority of the owners of property located in the proposed district. (g) Somerset County may pay the cost of street lighting provided in accordance with this section by a tax imposed equally only on improved property in the district. (h) (1) To cover the costs of street lighting, the County Commissioners of Washington County may impose either: (i) an ad valorem tax as provided in subsection (c) of this section; or (ii) a fixed amount per tax account that shall be uniform in the street lighting district. (2) Late payments are subject to interest from the date due at the same rate, and subject to the same collection procedures, as overdue county property taxes. #### Section 21-802 (a) Within 60 days after the end of each fiscal or calendar year, a special taxing area commission or board in Allegany County that has the right to collect taxes or fees shall file a report with the County Commissioners of Allegany County to account for all taxes collected and disbursed. (b) (1) A report required under this section shall be notarized. (2) The County Commissioners of Allegany County may require a certified audit. (c) A report required under this section shall be open for public review at the courthouse and at a convenient location in the area where taxes or fees are collected. #### Section 21-803 (a) The governing body of Anne Arundel County may: (1) establish special taxing districts; and (2) impose ad valorem taxes on all real property in a special taxing district at a rate sufficient to provide adequate annual revenue to pay the principal of and interest on any bonds or other obligations of the county issued to finance the design, acquisition, establishment, improvement, extension, operation, or alteration of public parking facilities or pedestrian malls. (b) Ad valorem taxes imposed under this section shall be imposed in the same manner, on the same assessments, for the same period, and as of the same date of finality as county real property taxes. #### Section 21-803.1 In addition to the purposes enumerated in Title 10 of this article, Anne Arundel County may establish, modify, or abolish special taxing districts for the purpose of providing or expanding water or wastewater services. #### Section 21-804 (a) (1) By ordinance, the County Commissioners of Calvert County may establish stormwater management districts. (2) Before adopting an ordinance establishing stormwater management districts, the county commissioners by ordinance shall adopt a comprehensive stormwater management plan. (b) (1) In this subsection, "area affected" means the critical area generating the run-off water and the area flooded. (2) A written petition requesting the creation of a stormwater management district and a stormwater management project may be presented to the County Commissioners of Calvert County by: (i) two-thirds of the real property owners in the area affected; or (ii) the owners of two-thirds of the real property in the area affected. (c) (1) On receipt of a valid petition, the County Commissioners of Calvert County shall: (i) hold a public hearing; (ii) mail a notice of the time and place of the hearing to each owner of real property in the proposed district at the address shown on the assessment records; and (iii) publish notice of the time and place of the hearing in at least one newspaper of general circulation in the county for 2 successive weeks. (2) At the hearing, the county commissioners shall: (i) determine, with the advice of the Calvert Soil Conservation District, the scope of the stormwater management project; and (ii) advise the property owners of the approximate cost and estimated benefit charges to be imposed on property in the stormwater management district. (d) (1) The County Commissioners of Calvert County shall: (i) determine, with the advice of the Calvert Soil Conservation District, the extent to which the county shall assume responsibility for design, construction, and maintenance of the stormwater management project; (ii) determine responsibility for design, construction, and maintenance that is not to be assumed by the county; (iii) determine whether to proceed with plans and specifications; and (iv) set a date for a final hearing. (2) The date for the final hearing may be changed only after notice is given in accordance with subsection (c)(1) of this section. (e) (1) At the final hearing, the County Commissioners of Calvert County may establish the stormwater management district and designate the area included in the district. (2) If the county commissioners establish a stormwater management district, the county commissioners shall determine: (i) the scope of the stormwater management project; (ii) the estimated cost of the project; (iii) the estimated costs to be assumed by the county; (iv) the costs to be assumed by other persons; and (v) estimated benefit charges to be imposed on each individual property. (3) The estimated benefit charges to be imposed on each individual property shall be based on the benefits accruing to each property in the stormwater management district to the extent the property is benefited by the project, as determined by the county commissioners. (4) The total cost of the project may be funded by the county commissioners, with individual costs paid back to the county by property owners in a period of time and with interest at a rate set by the county commissioners. (f) If the County Commissioners of Calvert County proceed with a stormwater management project, the county commissioners shall: (1) advertise for bids in the proper manner; and (2) award the contract to the lowest responsible bidder. (g) (1) On completion of a stormwater management project, the County Commissioners of Calvert County shall impose benefit charges on all real property in the stormwater management district. (2) The benefit charges imposed under this subsection shall be sufficient to meet the costs of the project other than the costs to be assumed by the county. (3) A benefit charge imposed under this subsection: (i) is a lien on the real property on which it is imposed; and (ii) shall be paid annually as county taxes are required to be paid, for the period of time established by the county commissioners. (h) The County Commissioners of Calvert County may accept as a gift, or contract to purchase, land and easements required for the stormwater management district. (i) (1) On completion of the stormwater management project to county specifications: (i) Calvert County shall maintain the portions of the system that are located: (1) on county-owned rights-of-way and drainage ways; and (2) on drainage ways for which the county has accepted a permanent easement; and (ii) all other portions of the system shall be maintained by the owner of the property on which a portion of the system is located. (2) (i) If the owner of the property does not maintain the portion of the drainage system located on the property, the county, after proper notice, may enter the property and correct the drainage problem. (ii) All costs for actions taken by the county under this paragraph shall be charged as a lien on the real property. #### Section 21-805 (a) In this section, "Department" means the Crofton Police Department. (b) There is a Crofton Police Department. (c) (1) The Department is: (i) established to provide protection for the Crofton Special Community Benefit District in Anne Arundel County; and (ii) responsible for enforcing the applicable laws, ordinances, and regulations of the State and Anne Arundel County. (2) (i) The Department is not an agency of Anne Arundel County. (ii) The officers, employees, and agents of the Department are not officers, employees, or agents of Anne Arundel County. (3) Anne Arundel County is not responsible for the acts or omissions of the Department or the officers, employees, or agents of the Department. (d) (1) There is a Chief of Police of the Department. (2) (i) The Chief of Police shall be appointed by the Town Manager of the Crofton Special Community Benefit District, with the approval of the Board of Directors of the Crofton Civic Association, Incorporated, acting as administrator of the Crofton Special Community Benefit District. (ii) The Chief of Police shall be: (1) experienced in the command of uniformed patrols and in the detection and investigation of crime; and (2) selected solely on the basis of qualifications for the position. (3) (i) The Chief of Police shall be responsible directly to the Town Manager. (ii) All orders to the Department from the Town Manager shall be directed through the Chief of Police or the designee of the Chief of Police. (4) (i) The Chief of Police shall command and administer the Department. (ii) The duties of the Chief of Police include: (1) being responsible for the efficiency and good conduct of the Department; (2) overseeing the general operation of the Department; (3) hiring employees and appointing officers; and (4) disciplining employees and officers. (5) The Chief of Police: (i) shall serve at the pleasure of the Town Manager; and (ii) subject to the approval of the Board of Directors of the Crofton Civic Association, Incorporated, acting as administrator of the Crofton Special Community Benefit District, may be removed by the Town Manager. (e) (1) A member of the Department has all the powers granted to a peace officer and a police officer of the State. (2) The powers granted under paragraph (1) of this subsection may be exercised only on property in the Crofton Special Community Benefit District and not on any other property, unless a member of the Department is: (i) engaged in fresh pursuit of a suspected offender; (ii) specially requested or allowed to exercise the powers in a political subdivision by the chief executive officer or chief police officer of the political subdivision; or (iii) ordered to exercise the powers by the Governor. (3) Members of the Department have concurrent jurisdiction in the performance of their duties with the law enforcement agencies of the State and Anne Arundel County. (4) This section does not: (i) relieve the State or Anne Arundel County from a duty to provide police, fire, and other public safety service and protection; or (ii) affect the jurisdiction of other police, fire, and public safety agencies. (f) (1) Subject to paragraph (2) of this subsection, the Maryland Police Training and Standards Commission shall adopt standards, qualifications, and prerequisites of character, training, education, human and public relations, and experience for the Department, including standards for the performance of the duties of the Department. (2) The Maryland Police Training and Standards Commission may delegate to the Board of Directors of the Crofton Civic Association, Incorporated, the authority to adopt standards, qualifications, and prerequisites under paragraph (1) of this subsection. (g) (1) The Board of Directors of the Crofton Civic Association, Incorporated, acting as administrator of the Crofton Special Community Benefit District, shall adopt rules and regulations governing the operation and conduct of the Department, including its police officers. (2) The rules and regulations of the Board of Directors concerning police officers shall supplement any rules or regulations of the Maryland Police Training and Standards Commission. (3) Disobedience to the lawful commands, rules, or regulations of the Maryland Police Training and Standards Commission or the Board of Directors shall be grounds for disciplinary action, including removal. (h) (1) Funding for the Department shall come from revenue derived from special taxes or assessments imposed on real property located in the Crofton Special Community Benefit District. (2) The Department or the Board of Directors of the Crofton Civic Association, Incorporated, acting as administrator of the Crofton Special Community Benefit District, may apply for, accept, and spend any gift or grant for the benefit or use of the Department from the federal government, any State unit, any foundation, or any other person. #### Section 21-806 (a) In this section, "Department" means the Ocean Pines Police Department. (b) There is an Ocean Pines Police Department. (c) (1) The Department is: (i) established to provide protection for the Ocean Pines community in Worcester County; and (ii) responsible for enforcing the applicable laws, ordinances, and regulations of the State and Worcester County. (2) (i) The Department is not an agency of Worcester County. (ii) The officers, employees, and agents of the Department are not officers, employees, or agents of Worcester County. (3) Worcester County is not responsible for the acts or omissions of the Department or the officers, employees, or agents of the Department. (d) (1) There is a Chief of Police of the Department. (2) (i) The Chief of Police shall be appointed by the General Manager of the Ocean Pines Association. (ii) The Chief of Police shall be: (1) experienced in the command of uniformed patrols and the detection and investigation of crime; and (2) selected solely on the basis of qualifications for the position. (3) (i) The Chief of Police shall be responsible directly to the General Manager. (ii) All orders to the Department from the General Manager shall be directed through the Chief of Police or the designee of the Chief of Police. (4) (i) The Chief of Police shall command and administer the Department. (ii) The duties of the Chief of Police include: (1) being responsible for the efficiency and good conduct of the Department; (2) overseeing the general operation of the Department; (3) hiring employees and appointing officers, subject to the approval of the General Manager; and (4) disciplining employees and officers. (5) The Chief of Police shall serve at the pleasure of the General Manager and may be removed by the General Manager. (e) (1) A member of the Department has all the powers granted to a peace officer and a police officer of the State. (2) The powers granted under paragraph (1) of this subsection may be exercised only on property in the Ocean Pines community and not on any other property, unless a member of the Department is: (i) acting under an agreement with another law enforcement agency; (ii) engaged in fresh pursuit of a suspected offender; (iii) specially requested or allowed to exercise the powers in a political subdivision by the chief executive officer or chief police officer of the political subdivision; or (iv) ordered to exercise the powers by the Governor. (3) Members of the Department have concurrent jurisdiction in the performance of their duties with the law enforcement agencies of the State and Worcester County. (4) This section does not: (i) relieve the State or Worcester County from a duty to provide police, fire, and other public safety service and protection; or (ii) affect the jurisdiction of other police, fire, and public safety agencies. (f) (1) Subject to paragraph (2) of this subsection, the Maryland Police Training and Standards Commission shall adopt standards, qualifications, and prerequisites of character, training, education, human and public relations, and experience for the Department, including standards for the performance of the duties of the Department. (2) The Maryland Police Training and Standards Commission may delegate to the Board of Directors of the Ocean Pines Association, Incorporated, the authority to adopt standards, qualifications, and prerequisites under paragraph (1) of this subsection. (g) (1) The Board of Directors of the Ocean Pines Association, Incorporated, shall adopt rules governing the operation and conduct of the Department, including its police officers. (2) The rules of the Board of Directors concerning police officers shall supplement any rules or regulations of the Maryland Police Training and Standards Commission. (3) Disobedience to the lawful commands, rules, or regulations of the Maryland Police Training and Standards Commission or the Board of Directors shall be grounds for disciplinary action, including removal. (h) (1) Funding for the Department shall come from revenue derived from assessments imposed on real property located in the Ocean Pines community and other available sources. (2) The Department or the Board of Directors of the Ocean Pines Association, Incorporated, acting as administrator of the Ocean Pines community, may apply for, accept, and spend any gift or grant for the benefit or use of the Department from the federal government, any State unit, any foundation, or any other person. --- Md. Code Ann., Local Gov't (as displayed at mgaleg.maryland.gov, October 16, 2026)