# Local Government (GLG)

## Title 27. Drainage Districts

### Subtitle 7. Financing

#### Section 27-701

(a) The board of drainage commissioners shall ascertain the total cost of the drainage project, including the payment of damages awarded to the landowners, after:

  (1) the classification of lands and the ratio of assessment of the different classes of lands has been confirmed by the county commissioners or county council at the time of the final hearing; and

  (2) any appeal made to the circuit court has been adjudicated.

(b) The total cost of the drainage project may include:

  (1) all costs and incidental expenses;

  (2) the compensation of members of the board of viewers and assistants and the superintendent of construction;

  (3) the expenses of the board of drainage commissioners;

  (4) the necessary expenses of maintaining the drainage project for a period of 3 years after the completion of the construction work; and

  (5) the payment of interest on drainage bonds for a period of 3 years.

(c)

  (1) The board of drainage commissioners, under the direction of the chair and secretary of the board, shall certify to the designated officer the total estimated cost of the drainage project.

  (2) The certification shall be recorded in the drainage record and open to inspection by any landowner.

(d) If the total estimated cost of the proposed drainage project constructed under this title is less than an average of 25 cents per acre of the total area, the board of drainage commissioners may issue bonds and shall collect the assessment from the landowners.

#### Section 27-702

(a) A drainage district may include land that may not be affected by the completed drainage project.

(b) Any land that will not be affected by the completed drainage project may not be assessed any drainage assessment.

#### Section 27-703

(a) When the board of drainage commissioners has estimated the total cost of the drainage project as provided under Sec. 27-701 of this subtitle, the board shall immediately prepare 10 assessment lists to cover the period of the bond issue, providing:

  (1) the names of the landowners in the drainage district as determined from the public records;

  (2) a brief description of the tracts of land assessed; and

  (3) the amount of the assessment against each tract of land.

(b)

  (1) The assessment lists shall provide assessments sufficient for:

    (i) the payment of principal and interest on the bond issue; and

    (ii) the amounts that have to be paid for collection and handling of the assessments.

  (2) The assessment list shall provide assessments for each year of the bond issue beginning with the third year and ending with the 12th year.

(c)

  (1) Each assessment list shall:

    (i) specify the time when the assessment is collectible; and

    (ii) be numbered in order.

  (2) The amount assessed against each tract of land shall be based on the benefit received, as shown by the classification and ratio of assessments made by the board of viewers.

(d) The assessment lists shall be signed by the chair and secretary of the board of drainage commissioners.

(e) After the designated officer has attached an order to each assessment list directing the collection of the assessments, one copy of each assessment list shall be:

  (1) filed with the drainage record; and

  (2) delivered to the county tax collector.

(f) After the assessment list is filed and delivered, the assessments constitute a lien, second only to State and county real property taxes, on the land assessed for the payment of bonds and the interest on the bonds as the payment becomes due.

(g) The assessments shall be due and payable annually on the first Monday in January.

(h) Each assessment shall be collected in the same manner and by the same officer as State and county real property taxes.

(i)

  (1) If the assessments are not paid in full on or before April 30 following the due date, the county tax collector shall sell the delinquent land.

  (2) The sale of land shall be between 10 a.m. and 4 p.m. at the courthouse door of the county in which the land is located.

#### Section 27-704

If the board of viewers, when making the examination and surveys of the drainage project, finds that the drainage project will benefit a railroad, public highway, or other public property, the board of viewers shall assess the railroad, State, or county for the benefits derived from the drainage district.

#### Section 27-705

(a)

  (1) The board of drainage commissioners shall give notice of a proposal to issue bonds by:

    (i) publication for 3 weeks in a newspaper of general circulation in the county where any part of the drainage district is located;

    (ii) posting a notice at the door of the courthouse in the county where any part of the drainage district is located; and

    (iii) posting a notice at five conspicuous places in the vicinity of the drainage district.

  (2) The notice shall include:

    (i) the proposal to issue bonds to pay for the total cost of the drainage project;

    (ii) the amount of bonds to be issued;

    (iii) the interest rate for the bonds; and

    (iv) the date when the bonds are payable.

(b)

  (1) A landowner that does not want to pay interest on the bonds may pay to the county tax collector, within 15 days after the publication of the notice in subsection (a) of this section, the full amount due for the landowner, as provided in the classification sheet and the certificate of the board of drainage commissioners showing the total cost of the drainage project.

  (2) If the landowner pays the full amount, the landowner is relieved from liability for the drainage project.

  (3) The landowner shall continue to be liable for any future assessment for maintenance or for any increased assessment authorized under law.

(c)

  (1) At the expiration of the 3 weeks after the publication of the notice in subsection (a) of this section, the board of drainage commissioners may issue bonds of the drainage district in an amount equal to the total cost of the drainage project less any amount that has been paid to the county tax collector, including an amount sufficient to pay interest on the bond issue for the 3 years after the date of issue.

  (2) All bonds issued under this section:

    (i) shall bear interest;

    (ii) shall be payable semiannually;

    (iii) shall be paid in 10 equal installments, with the first installment of principal maturing 3 years after the issue, and one installment for each succeeding year for 9 additional years;

    (iv) shall be numbered by the board of drainage commissioners;

    (v) shall be recorded in the drainage record; and

    (vi) may not be sold for a price less than par.

  (3) The board of drainage commissioners shall use the proceeds of the bonds to pay:

    (i) for the work as it progresses;

    (ii) the interest on the bonds issued for the 3 years after the date of issue; and

    (iii) the other expenses of the drainage district provided under this title.

(d)

  (1) The proceeds from the sale of bonds under this section shall be for the exclusive use of the drainage district specified on the bonds.

  (2) The drainage record shall list the land in the drainage district on which the assessment has not been paid in full.

(e)

  (1) If an installment of principal or interest on the bonds is not paid at the time and in the manner due and the default continues for 6 months, the holder of the bond in default has a right of action against the drainage district or the board of drainage commissioners.

  (2) If an action is brought, the court may issue a writ of mandamus against the drainage district and its officers, including the county tax collector, that directs the imposition of a special assessment against landowners in default in an amount necessary to meet unpaid installments of principal and interest and the costs of the action.

  (3) The holder of any bond in default may:

    (i) pursue any other remedy authorized by law; and

    (ii) bring suit against any officer on the official bond of the officer for failing to perform a duty required under this title.

#### Section 27-706

(a)

  (1) The board of drainage commissioners may impose an assessment on the landowner benefited by the construction of the drainage project to maintain the drainage project.

  (2) The assessment under this section shall be imposed in the same manner and in the same proportion as the original assessment under this subtitle, in an amount not to exceed 25% of the original assessment.

  (3) The board of drainage commissioners shall use the money that is collected to repair and maintain the drainage project.

(b)

  (1) The board of drainage commissioners shall impose the cost of any repairs on a landowner if the repair is necessary because of:

    (i) an act or negligence of the landowner or an agent or employee of the landowner; or

    (ii) the cattle, hogs, or other livestock of the landowner or of an agent or employee of the landowner.

  (2) The cost of repairs as provided under paragraph (1) of this subsection shall be collected by suit instituted by the board of drainage commissioners.

#### Section 27-707

(a) A drainage district may use any loan or other assistance from the federal government for drainage or reclamation work.

(b)

  (1) Subject to paragraph (2) of this subsection, to facilitate any cooperative construction plan agreed to by the federal government and any drainage district, the board of drainage commissioners may issue bonds of the drainage district in the form and maturities required by the federal government.

  (2) A contract or agreement between the drainage district and the federal government for cooperative construction work is subject to approval by a majority of the landowners of the drainage district.

(c) State officials shall solicit the cooperation of the federal government to drain and reclaim agriculture lands.

#### Section 27-708

(a) In this section, "Fund" means the Drainage District Fund.

(b) There is a Drainage District Fund.

(c)

  (1) The purpose of the Fund is to encourage drainage projects to promote the ditching, draining, leveeing, and reclaiming of wet and overflowed land that can be made available for agriculture.

  (2) Loans not exceeding $2,000 may be made from the Fund for a drainage project to pay the expenses of the surveys, board of viewers, advertising, and all other incidental fees and expenses connected with the drainage project until the drainage district is established and the work is turned over to the board of drainage commissioners.

(d) The sum of $10,000 shall be appropriated from money in the State Treasury, which is not otherwise appropriated, to the credit of the Fund.

(e) When there is money to the credit of the Fund, the State Treasurer shall pay the money to be loaned:

  (1) on warrant of the Comptroller; and

  (2) on the receipt of an itemized statement requesting the loan, endorsed by the designated officer and presiding officer of the county commissioners or county council of the county in which the original petition of the drainage district was filed.

(f) The funds loaned by the State shall be returned to the State Treasury through the county commissioners or county council, who shall collect the amount loaned under a petition filed under this title from:

  (1) if the petition is not allowed, the petitioner or the petitioner's surety; or

  (2) if the drainage district is established, the board of drainage commissioners out of the first proceeds of the sale of the bonds of the drainage district charged with the loan.

(g) In order for the Fund to be available for other projects, a loan to one drainage district may not be greater than the amount that is necessary for the use of the drainage district.

#### Section 27-709

The county tax collector, without an order from the board of drainage commissioners, shall pay:

(1) the installments of interest at the time and place as evidenced by the bonds; and

(2) the annual installments of the principal due on the bonds at the time and place evidenced by the bonds.

#### Section 27-710

The official bond of the county tax collector:

(1) shall be liable for the faithful performance of the duties assigned to the officer under this subtitle; and

(2) may be increased by the county commissioners or county council at their discretion.

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Md. Code Ann., Local Gov't (as displayed at mgaleg.maryland.gov, October 16, 2026)