In this subtitle the following words have the meanings indicated. “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. “Cost” includes the cost of: construction, reconstruction, and renovation; 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; machinery and equipment, including machinery and equipment needed to expand or enhance county services to a special taxing district; financing charges and interest before and during construction and, if the county considers it advisable, for a limited period after completion of the construction; 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; extensions, enlargements, additions, and improvements; architectural, engineering, financial, and legal services; plans, specifications, studies, surveys, and estimates of cost and revenues; administrative expenses necessary or incident to determining to proceed with infrastructure improvements; and other expenses necessary or incident to acquiring, constructing, and financing infrastructure improvements; and 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. “MEDCO obligation” means any debt instrument that the Maryland Economic Development Corporation issues for the purposes stated in § 21–504(a)(2) of this subtitle. “State hospital redevelopment” means any combination of private or public commercial, residential, or recreational uses, improvements, and facilities that: is part of a comprehensive, coordinated development plan or strategy involving property that: was occupied formerly by a State facility, as defined in § 10–101 of the Health – General Article, or a State residential center, as defined in § 7–101 of the Health – General Article; or is adjacent or reasonably proximate to property that was occupied formerly by a State facility, as defined in § 10–101 of the Health – General Article, or a State residential center, as defined in § 7–101 of the Health – General Article; in accordance with design development principles, maximizes use of the property by those constituencies it is intended to serve; and is designated as a State hospital redevelopment by: the Sustainable Growth Subcabinet established under § 9–1406 of the State Government Article; and the local government or multicounty agency with land use and planning responsibility for the relevant area. “Transit–oriented development” has the meaning stated in § 7–101 of the Transportation Article.

This subtitle applies only to: a code county in the Eastern Shore class; Anne Arundel County; Baltimore County; Calvert County; Cecil County; Charles County; Garrett County; Harford County; Howard County; Prince George’s County; St. Mary’s County; Washington County; and Wicomico County. 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. The powers granted under this subtitle: are supplemental to any power granted by another law; and do not limit any other power. This subtitle is necessary for the welfare of the State and its residents and shall be liberally construed to effect the purposes stated in § 21–504(a) of this subtitle.

For any purpose stated in § 21–504(a)(1) of this subtitle, a county may: establish a special taxing district; impose ad valorem or special taxes; and issue bonds. For any purpose stated in § 21–504(a)(2) of this subtitle, a county may: establish special taxing districts; impose ad valorem or special taxes; and pledge funds under an agreement to: secure payment on MEDCO obligations; pay the costs of infrastructure improvements located in or supporting a transit–oriented development or a State hospital redevelopment; and pay the costs of operating and maintaining infrastructure improvements located in or supporting a transit–oriented development or a State hospital redevelopment. An agreement pledging funds as described in paragraph (1)(iii) of this subsection shall: be authorized by an ordinance or resolution of the county; be in writing; 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 benefit, and be enforceable on behalf of, the holders of any MEDCO obligation secured by the agreement. 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: the owners of at least two–thirds of the assessed valuation of the real property located in the special taxing district; and at least two–thirds of the owners of the real property located in the special taxing district. For purposes of paragraph (1)(ii) of this subsection: multiple owners of a single parcel are treated as a single owner; and a single owner of multiple parcels is treated as one owner.

The purpose of the authority granted under this subtitle is to: 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 provide a source of funding for payment of costs of: infrastructure improvements located in or supporting a transit–oriented development or a State hospital redevelopment; and operating and maintaining infrastructure improvements located in or supporting a transit–oriented development or a State hospital redevelopment. An infrastructure improvement financed under subsection (a)(1) of this section may be located: in the special taxing district; or outside the special taxing district if the infrastructure improvement is reasonably related to other infrastructure improvements in the special taxing district. For the purposes of this subtitle and any authority granted by this subtitle, a sustainable community, as defined in § 6–201 of the Housing and Community Development Article, shall be considered the same as a transit–oriented development.

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: hold a public hearing; and 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. 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 § 21–502(a) of this subtitle, the county shall get the consent of the governing body of the municipality or another county.

By resolution, the governing body of a county: may designate an area as a special taxing district; and shall create a special fund with respect to the special taxing district. A resolution creating a special fund under subsection (a) of this section shall: pledge to the special fund the proceeds of the ad valorem or special tax to be imposed as provided under § 21–508 of this subtitle; and require that the proceeds from the tax be paid into the special fund.

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: any purpose specified in this subtitle; paying debt service on bonds to be issued later; 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 payment to the county to provide money for any legal purpose as determined by the governing body of the county.

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: to pay the principal of, interest on, and any redemption premium on any bonds; to replenish any debt service reserve fund; for any other purpose related to the ongoing expenses of or security for bonds; to pay costs of infrastructure improvements located in or supporting a transit–oriented development or a State hospital redevelopment; to pay costs of operating and maintaining infrastructure improvements located in or supporting a transit–oriented development or a State hospital redevelopment; or to secure payment by the county of its obligations under an agreement described in § 21–503(b) of this subtitle. 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. 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. In determining the basis for and amount of a special tax, the cost of an improvement may be calculated and imposed: equally per front foot, lot, parcel, dwelling unit, or square foot; according to the value of the property, with or without regard to improvements on the property; or in any other reasonable manner that results in a fair allocation of the cost of the infrastructure improvements. The governing body of a county may enact an ordinance or a resolution for: the maximum amount of a special tax to be imposed on any parcel; the tax year or other date after which further special taxes under this subtitle may not be imposed on a parcel; and 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. By ordinance or resolution, the governing body of a county may establish procedures allowing for the prepayment of special taxes under this subtitle. A special tax imposed under this subtitle shall: unless otherwise provided in an ordinance or a resolution, be collected and secured in the same manner as general ad valorem taxes; and in the case of delinquency, be subject to the same penalties, procedure, sale, and lien priority as general ad valorem taxes.

A special taxing district established under this subtitle shall be terminated if: no bonds authorized by this subtitle are outstanding with respect to the special taxing district; no MEDCO obligations as to which a county has pledged revenues under this subtitle are outstanding with respect to the special taxing district; and the governing body of the county determines not to use money in the special fund for payment of costs of: infrastructure improvements located in or supporting a transit–oriented development or a State hospital redevelopment; or operating and maintaining infrastructure improvements located in or supporting a transit–oriented development or a State hospital redevelopment. 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.

The special fund and any sinking fund established by a county under this subtitle are subject to § 19–102 of this article. The proceeds of bonds issued under this subtitle are subject to §§ 17–101 and 17–102 of this article.

Notwithstanding any other law, a county may issue bonds as provided under this subtitle for the purposes stated in § 21–504(a)(1) of this subtitle. To issue bonds under this subtitle, the governing body of a county shall adopt an ordinance or a resolution that: describes the proposed undertaking; states: that the governing body has complied with §§ 21–506 and 21–508 of this subtitle; the maximum principal amount of bonds to be issued; and the maximum rate of interest for the bonds; and 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. For bonds to be issued to finance the proposed undertaking, the ordinance or resolution may specify: the principal amount; the rate of interest; the manner and terms of sale; the time of execution, issuance, and delivery; the form, purpose, and denominations; the manner in which and the times and places at which the principal of and interest on the bonds shall be paid; conditions for payment of principal of and interest on the bonds before maturity; or other provisions consistent with this subtitle that the governing body of the county determines are necessary or desirable. The ordinance or resolution may specify the items listed in paragraph (1) of this subsection or may authorize: the county’s finance board or other appropriate financial officer to specify those items by resolution; or the county’s chief executive officer to specify those items by executive order. The following may not be subject to a referendum because of any State or local law: an ordinance or a resolution authorizing the bonds; an ordinance, a resolution, or an executive order passed or adopted in furtherance of the ordinance or resolution authorizing the bonds; the bonds; the designation of a special taxing district; or the imposition of ad valorem or special taxes.

A bond issued under this subtitle: may be in bearer form or coupon form; may be registrable as to principal alone or as to both principal and interest; and is a security under § 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. A bond shall be signed manually or in facsimile by the chief executive officer of the county. The clerk or other similar administrative officer of the county shall attest to and affix the seal of the county to each bond. An officer’s signature or countersignature on a bond remains valid if the officer ceases to be an officer before delivery of the bond. A bond shall mature not later than 30 years after the date of issuance. A county may sell bonds: at a public or private sale; and in any manner and on any terms that the governing body of the county considers best. A contract to acquire property may provide that payment shall be made in bonds. Bonds are exempt from §§ 19–205 and 19–206 of this article.

Bonds issued under this subtitle are securities: 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 in which any of the following persons or entities may invest money: an officer or a unit of the State or a political subdivision of the State; a bank, a trust company, a savings and loan association, or an investment company; an insurance company; and a personal representative, a trustee, or any other fiduciary.

Bonds are payable from the special fund required under § 21–506 of this subtitle. 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. The governing body of a county that issues bonds under this subtitle may: establish a sinking fund; establish a debt service reserve fund; pledge other assets and revenues toward the payment of the principal of and interest on the bonds; or provide for municipal bond insurance or any other financial guaranty of the bonds.

Bond proceeds shall be used only to pay the cost of infrastructure improvements, including: the cost of establishing, acquiring, designing, constructing, extending, or altering infrastructure improvements; the cost of issuing bonds; payment of the principal of and interest on loans, money advances, or indebtedness incurred by the county for any purpose stated in § 21–504(a) of this subtitle, including refunding bonds previously issued; and 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.

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.

A law enacted by Anne Arundel County under this subtitle: shall specify the type of infrastructure and related costs that may be financed; shall require: 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 that, if a seller fails to provide the disclosure, the buyer may void the contract before the date of settlement; shall require adequate debt service reserve funds to be maintained; may provide: for exemptions, deferrals, and credits; and 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 may not allow: acceleration of assessments or taxes by reason of bond default; or 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.

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. The governing body of Cecil County shall hold at least one public hearing on a bill establishing a special taxing district. At the public hearing, the governing body may consider the following elements of a proposed development that would receive the proceeds of a bond: development design standards; the use of transfer of development rights or other methods of increasing the density of development; design and use of open space; and availability and design of recreational and educational facilities. A law enacted by Cecil County under this subtitle shall require that adequate debt service reserve funds be maintained. Except as provided in subsection (e)(2) of this section and notwithstanding § 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. For the purpose of providing Internet service, Cecil County may: exercise the authority granted under this subtitle in the entirety of the unincorporated area of the county; establish a special taxing district if property owners in the proposed special taxing district petition the county in accordance with § 21–503(c) of this subtitle; and impose ad valorem or special taxes and issue bonds under this subtitle.

Charles County may exercise the authority granted under this subtitle to provide financing, refinancing, or reimbursement of costs for the purposes under § 21–504(a) of this subtitle relating to the development of resort hotels and conference centers in a waterfront planned community. 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 § 21–504(a) of this subtitle relating to the development of resort hotels and conference centers in a waterfront planned community. 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. 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. 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. The proceeds from the hotel rental tax authorized under this subsection may be used only for the purposes authorized under this subtitle. Charles County may not impose the hotel rental tax authorized under this subsection outside a special taxing district established under this subtitle. Charles County may exercise the authority granted under this subtitle to provide financing, refinancing, or reimbursement for the cost of: convention centers, conference centers, and visitors’ centers; maintaining infrastructure improvements, convention centers, conference centers, and visitors’ centers; and marketing special taxing district facilities and other improvements. 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. 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.

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. Harford County may not exercise the authority granted under this subtitle in any rural village. In Harford County, a special taxing district may be established only by a law enacted by the governing body of the county. 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: development design standards; the use of transfer of development rights or other methods of achieving density of development; design and use of open space; and availability and design of recreational and educational facilities. A law enacted by Harford County establishing a special taxing district shall require that adequate debt service reserve funds be maintained. Notwithstanding § 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.

Prince George’s County may exercise the authority granted under this subtitle to: impose hotel rental taxes; and provide financing, refinancing, or reimbursement for the cost of: convention centers, conference centers, and visitors’ centers; maintaining infrastructure improvements, convention centers, conference centers, and visitors’ centers; marketing special taxing district facilities and other improvements; and renovating, rehabilitating, and repairing existing buildings, building systems, and components for existing residential condominiums designated as workforce housing, as defined in § 4–1801 of the Housing and Community Development Article.