In this subtitle the following words and terms have the meanings indicated. “Board” means the Board of Directors of the Maryland Environmental Service. “Bonds” means all bonds or other evidences of indebtedness of the Service other than notes, whether general or limited obligations of the Service. “Cost” as applied to a water supply project, a solid waste disposal project, a wastewater purification project, an energy project, a service area, a service district, or to any activity undertaken by the Service, includes: (1) the cost of construction or acquisition, including the purchase price of any existing project or the cost of acquiring all or any portion of the right, title, or interest in the project and the amount to be paid to discharge all obligations necessary to vest title to the project or any part of it in the Service or other owner; (2) the cost of any reconstruction, extension, enlargement, alteration, repair, or improvement; (3) the cost of all lands, properties, rights, easements, interests, franchises, and permits acquired; (4) the cost of all labor, machinery and equipment, financing charges, interest prior to and during construction and for such period after completion of construction as the Service deems appropriate; (5) the cost of revenue estimates, engineering and legal services, plans, designs, specifications, surveys, investigations, demonstrations, studies, estimates of cost, other expenses necessary or incident to determining the feasibility or practicability of any such acquisition, improvement, or construction; (6) administrative and overhead expenses, and all expenses necessary or incidental to the financing herein authorized, and to the acquisition, operation, maintenance, improvement, construction of water supply, liquid, solid waste, and energy project facilities, and the placing of these project facilities in operation, including reasonable provision for working capital; (7) reserves for principal and interest and for extensions, enlargements, additions and improvements. Any obligation or expense incurred prior to the issuance of bonds or notes under the provisions of this title in connection with the foregoing items of cost may be regarded as a part of such costs. The word “county” includes Baltimore City unless otherwise indicated. “Energy project” means any service, facility, system, or property, real or personal, used, useful, or having present capacity for use in connection with: Energy conservation; or The production, generation, or distribution of energy from a renewable or other energy source. “Executive Director” means the Executive Director of the Maryland Environmental Service. “Facility” means a physical structure or appurtenance built, constructed, acquired, installed, or established to perform a function or service in connection with a water supply, wastewater purification, solid waste disposal, or energy project whether publicly or privately owned and whether existing or proposed. “Liquid waste” means: Stormwater runoff; and Any water–carried wastes or wastes which are liquid in nature created in and carried away, or to be carried away, from residences, institutions, industrial establishments, commercial establishments, or any other public or private building, structure, or facility. “Municipality” means any county, municipal corporation, sanitary district, State or local unit, the District of Columbia, the United States or any of its units, or other public body or unit created or established by or in accordance with federal, State, or local law, ordinance, or resolution. “Notes” means bond anticipation notes, revenue anticipation notes, and grant anticipation notes of the Service, whether general or limited obligations of the Service. “Person” means any natural person, individual, firm, partnership, association, cooperative, limited liability company, corporation, or other entity. “Project” means a solid waste disposal project, a wastewater purification project, a water supply project, or an energy project, as the case may be. “Project” includes any service, facility, or property used or useful or having present capacity for future use in connection with: The transporting, transferring, compacting, burying, incinerating, reduction, composting, collection, storage, treatment, utilization, processing, or final disposal of liquid wastes, solid wastes or water, as the case may be; The conversion of liquid wastes, solid wastes or water, as the case may be, to fuel, steam, electricity, energy, or other resources or the generation of steam, electricity, or other forms of energy from fuel which is derived from, or is otherwise related to, liquid wastes, solid wastes or water, as the case may be; The reconstruction, converting or otherwise recycling of liquid wastes, solid wastes or water, as the case may be, into material which is not liquid waste, solid waste or water or which is useful or is marketable; or Any combination of items (i) through (iii) of this paragraph, whether or not such facilities are located on a single site. “Project” also includes: Waste disposal facilities, pollution control facilities, and facilities for generating and furnishing electric energy or gas or other forms of energy which can be financed by bonds the interest on which is exempt from income tax under the Internal Revenue Code of 1986, as amended, whether such interest would have been tax exempt at the time of the enactment of this subtitle or of any amendment thereto; and Any facilities and properties within the definition of “project”, “solid waste disposal project”, “wastewater purification project”, “water supply project”, or “energy project” set forth in this subsection, whether or not such facilities or properties can be financed by bonds the interest on which is tax exempt under the Internal Revenue Code of 1986, as amended, it being the purpose and intent of this subtitle that the terms “project”, “solid waste disposal project”, “wastewater purification project”, “water supply project”, and “energy project” be liberally construed so as to effectuate the purposes of this subtitle. “Project”, “solid waste disposal project”, “wastewater purification project”, “water supply project”, and “energy project” include land, buildings, structures, machinery, equipment, rail or motor vehicles, barges, boats, and all properties and rights therein and appurtenances thereof, rights–of–way, franchises, easements, and other interests in land, all land and facilities that are functionally or administratively related and subordinate to the solid waste disposal project, wastewater purification project, water supply project, or energy project, as the case may be, and all patents, licenses, and other rights necessary or useful in the planning, development, construction, or operation of a solid waste disposal project, wastewater purification project, water supply project, or energy project. “Service” means the Maryland Environmental Service. “Service district” means a geographic area established by the Service, after consultation with the municipalities affected, for the purpose of providing water supply projects, wastewater purification projects or solid waste disposal projects. Service districts may encompass areas containing projects of the Service as well as nonduplicating, noncompetitive projects owned and operated by municipalities or persons. Service districts shall be based upon approved State–county master water and sewerage plans or solid waste disposal plans, if any, adopted pursuant to the Environment Article, but they may also take account of other plans and studies. “Service region” means a geographic area which the Maryland Environmental Service designates and within which the Executive Director, after consultation with the municipalities affected, causes surveys, plans, studies, and estimates to be made for the purpose of determining the most dependable, effective, and efficient means of providing services through water supply projects, solid waste disposal projects, or wastewater purification projects. Service regions shall be based upon needs set forth in approved State–county master water and sewerage plans, or solid waste disposal plans, if any, adopted pursuant to the Environment Article, but they may also take account of other plans and studies. “Solid waste disposal project” means any service, facility, or real or personal property used or useful or having present capacity for future use in connection with the measurement, management, collection, disposal, prevention, or recycling of solid wastes by any means, including disposal, recovery, or reuse to produce energy or products, or otherwise. “Solid wastes” means all waste materials, whether solid, liquid, or gas, including liquid wastes. The term includes garbage, rubbish, ashes, incinerator residue, wastewater treatment residue, street cleanings, dredged materials, dead animals, demolition and construction debris, household appliances, hazardous materials, automobile bodies, offal, paunch manure, methane or any other gases, sewage sludge and solid or gaseous waste materials from commercial, agricultural, residential, industrial, or community activities. “Wastewater purification project” means any service, facility, or property, real or personal, used or useful or having present capacity for future use in connection with the measurement, management, prevention, redirection, collection, or treatment of liquid wastes. “Water supply project” means any service, facility, or property, real or personal, used, useful, or having present capacity for future use in connection with water supply, protection, and distribution, including any water treatment facility or property and rights therein and appurtenances thereto.

To assist with the preservation, improvement, and management of the quality of air, land, water, and natural resources, and to promote the health and welfare of the citizens of the State, it is the intention of the General Assembly in enactment of this subtitle to provide for dependable, effective, and efficient water supply and purification and disposal of liquid and solid wastes, to encourage reductions in the amount of waste generated and discharged to the environment and the generation of energy and the recovery of useable resources from such waste to the extent practicable; to promote the conservation of energy usage and to enable and provide for the production of energy from solid wastes and renewable and other sources; to encourage private sector participation in environmental protection; and to serve its political subdivisions and economic interests. For these purposes, the General Assembly creates an instrumentality of the State constituted as a body politic and corporate to provide water supply wastewater purification and disposal, solid and hazardous waste disposal, and energy conservation, generation, and transmission services in compliance with State and federal laws, regulations, and policies governing air, land, and water pollution to public and private instrumentalities, and with safeguards to protect the autonomy of the political subdivisions and the rights of the private entities it serves. It is also the intent of the General Assembly that the instrumentality may not participate in competitive bidding with the private sector to provide its services. This subtitle shall be liberally construed to effect its purposes. However, nothing contained in it shall restrict any control which the Departments of the Environment and Natural Resources, or of their units, are empowered to exercise over any water supply, wastewater purification, solid waste disposal, or energy project authorized by this subtitle, nor interfere with or affect the operation of existing wastewater purification, water supply, solid waste disposal, or energy projects found by the Secretary of the Environment to be adequately and lawfully operated by municipalities having jurisdiction or responsibility for them, except by their express consent and agreement. Nothing in this subtitle shall restrict any control which the Public Service Commission is empowered to exercise over any energy project authorized by this subtitle. Nothing in this subtitle shall be construed to alter, change, or modify the zoning or land use planning authority of any municipality or public instrumentality or cause a municipality or public instrumentality to take action inconsistent with the county solid waste management plan required under Title 9, Subtitle 5 of the Environment Article.

There is a body politic and corporate known as the “Maryland Environmental Service”. The Service is an instrumentality of the State and a public corporation by that name, style, and title, and the exercise by the Service of the powers conferred by this subtitle is the performance of an essential governmental function of the State. There are four officers of the Service: An Executive Director; A Deputy Director; A Secretary; and A Treasurer. The four officers of the Service shall be appointed in accordance with this paragraph. The Executive Director shall be appointed by the Governor, with the advice and consent of the Senate solely with regard to the qualifications for the duties of the office. The Executive Director serves at the pleasure of the Board with the concurrence of the Governor and shall receive such compensation as may be determined by the Board. The Deputy Director shall be appointed by the Executive Director with the approval of the Governor solely with regard to the qualifications for the duties of the office. The Deputy Director serves at the pleasure of the Executive Director and shall receive such compensation as may be determined by the Board. The Secretary and the Treasurer shall be selected by the Board from among the Board’s members. The Secretary and the Treasurer serve at the pleasure of the Board and shall receive such compensation as may be reasonably determined by the Board. The Board of Directors of the Service shall consist of the following members: The Executive Director, who shall serve as a nonvoting member; The following two members, who shall each serve as a nonvoting member: One member of the Senate of Maryland, appointed by the President of the Senate; and One member of the House of Delegates, appointed by the Speaker of the House; The Secretary of Planning, or the Secretary’s designee; Three members from the public sector in the State in positions responsible for environmental, water, wastewater, or solid waste management; One member from the private sector in the State with technical, financial, development, or legal experience related to environmental, water, wastewater, or solid waste management; One member from the private sector in the State with financial experience related to environmental, water, wastewater, or solid waste management; and One member from the private sector in the State with experience or expertise in matters related to business ethics, preferably involving board of director ethics and conflicts of interest. Subject to subparagraphs (ii), (iii), and (iv) of this paragraph, the public sector and private sector members of the Board, as set forth in paragraph (3)(iv) through (vii) of this subsection shall be appointed by the Governor with the advice and consent of the Senate. The Governor shall select at least one of the public sector members of the Board from a list of recommendations jointly compiled by the Maryland Association of Counties and the Maryland Municipal League. The Governor may not appoint an employee of the Service to the Board. At least one of the public sector or private sector members shall be a resident of a rural county in the State. Five members constitute a quorum for the transaction of business of the Board. The affirmative vote of at least five members is necessary for any action taken by the Board. Those members of the Board not already holding a public office shall receive from the Service: Per diem compensation as established by the Board; and Reimbursement for expenses under Standard State Travel Regulations. The term of a member other than the Secretary of Planning, a member appointed under paragraph (3)(ii) of this subsection, and the Executive Director is 4 years. The terms of members other than the Secretary of Planning, a member appointed under paragraph (3)(ii) of this subsection, and the Executive Director are staggered as required by the terms provided for those members of the Board on July 1, 2021. At the end of a term, a member continues to serve until a successor is appointed and qualifies. A member who is appointed after a term has begun serves only the remainder of that term and until a successor is appointed and qualifies. A member of the Board who is appointed under paragraph (3)(iii) through (vi) of this subsection may serve only two consecutive full 4–year terms, plus any partial term served before the initial 4–year term. Subject to paragraphs (13) and (14) of this subsection, the Board shall select a Chair from among the Board’s members. The Executive Director may not serve as the Secretary, Treasurer, or Chair of the Board. The Secretary of Planning or a member appointed under paragraph (3)(ii) of this subsection may not serve as the Secretary, Treasurer, or Chair of the Board. The Executive Director: Is the administrative head of the Service; Is directly responsible to the Board and shall advise the Board on all matters assigned to the Service; Shall carry out the Board’s policies related to the Service; Shall, at each regular meeting of the Board, present a detailed and itemized accounting and explanation of all expenses incurred by or on behalf of the Executive Director and the Deputy Director that, in the aggregate and calculated from the date of the previous regular meeting through the day before the date of the regular meeting at which the expenses will be presented, exceed $500; and Is responsible for the exercise of all powers and duties conferred upon the Service by the provisions of this subtitle except for those powers and duties specifically conferred by this subtitle on the Secretary, Treasurer, or Board. The voting members of the Board shall: Establish the criteria and procedures for evaluating the Executive Director; Publish the criteria and procedures established under item (i) of this paragraph on the Service’s website; and Annually evaluate the Executive Director in accordance with the criteria and procedures established under item (i) of this paragraph. The Deputy Director shall have the duties provided by law or delegated by the Executive Director. The Secretary: Shall keep a record of the proceedings of the Board and be custodian of all books, documents, and papers filed with the Service and of the minute book or journal of the Service and its official seal; May have copies made of all minutes, records, and documents of the Service and certify them to be true copies under the official seal of the Service; and May, with the approval of the Board, delegate to another member of the Board, during an absence of the Secretary, any duty enumerated in items (i) and (ii) of this paragraph. Any person dealing with the Service may rely on the certificates described in paragraph (1)(ii) of this subsection, and certified copies shall be received as evidence in any court or other tribunal in the State, in the same manner and with the same effect as if the original books, papers, entries, records, or proceedings could be produced. With the approval of the Board, the Secretary may authorize an employee of the Service to serve as Deputy Secretary and to perform the functions set forth under paragraphs (1) and (2) of this subsection on behalf of the Secretary, subject to any restrictions and conditions that the Secretary establishes. The Treasurer shall: Develop and maintain a detailed and accurate accounting system for all financial transactions of the Service; and Perform other duties relating to the financial affairs of the Service as required by law or by a directive of the Board. Unless any money of the Service is otherwise held by or payable to a trustee appointed pursuant to a resolution authorizing the issuance of bonds or notes or under a trust agreement securing the bonds or notes, the Treasurer shall: Receive money of the Service until otherwise prescribed by law; and Deposit the money as soon as it is received to the credit of the Service in any financial institution in which the State Treasurer is authorized to deposit State funds. The Treasurer shall disburse money for the purposes of the Service according to law, only upon the Treasurer’s warrant. The Treasurer shall make arrangements for the payment of the interest on and principal of the Service debt. Upon entering the performance of official duties, the Treasurer shall be covered by a surety bond or an insurance policy of the type and in the amount of coverage determined by the State Treasurer under § 5–108 of the State Government Article. With the approval of the Board, the Treasurer may authorize an employee of the Service to serve as Deputy Treasurer and to perform any of the functions set forth under paragraph (1) of this subsection, subject to restrictions and other conditions that the Treasurer establishes. The Deputy Treasurer shall be covered by a surety bond or an insurance policy of the type and in the amount of coverage determined by the State Treasurer under § 5–108 of the State Government Article. The Attorney General of Maryland shall: Be the legal advisor for the Service and the Board; and Enforce compliance with the requirements of this subtitle through any appropriate legal remedy and prosecute violations in accordance with the provisions of this subtitle. The Attorney General shall assign to the Service the number of assistant Attorneys General and other staff requested by the Service. One of the assistant Attorneys General shall be designated by the Attorney General as counsel to the Service. The counsel to the Service shall have no other duty than to render, subject to the discretion and control of the Attorney General, the legal aid, advice, and counsel required by the Executive Director, the Board, and the other officials of the Service and, also subject to the discretion and control of the Attorney General, to supervise the other assistant Attorneys General assigned to the Service. The counsel and every other assistant Attorney General assigned to the Service shall be practicing lawyers of this State in good standing and shall be entitled to a salary from the funds of the Service. After the Attorney General has designated an assistant Attorney General to serve as counsel to the Service, the Attorney General may not reassign the counsel without consulting with the Executive Director and the Board. With the approval of the Attorney General and the Board, the Service may employ additional counsel that it considers necessary to carry out the provisions of this subtitle. The Service is exempt from the provisions of Subtitles 3, 4, 5, and 7 of Title 4 of the State Finance and Procurement Article. The Service is exempt from the provisions of Division II of the State Finance and Procurement Article, but is not exempt from Subtitle 3 of Title 14, Subtitle 4 of Title 12, Title 16, and Title 17 of the State Finance and Procurement Article. Except as otherwise provided in this paragraph, all procurements by the Service for materials, equipment, services, or supplies performed or furnished in connection with the planning, development, design, equipping, construction, or operation of any project owned or controlled by the Service, shall be awarded in accordance with rules and regulations adopted pursuant to the Administrative Procedure Act. The Service may procure materials, equipment, services, or supplies by utilizing: Competitive sealed bids; Competitive sealed proposals; Sole source procurement; Intergovernmental cooperative purchasing agreements; A small procurement process, if the procurement is estimated by the Service to result in an expenditure of $50,000 or less; An emergency procurement process, if the procurement is necessary to avoid or to mitigate serious damage to public health, safety, or welfare; or Pay–for–success contracting under § 13–228 of the State Finance and Procurement Article. The approval of the Board shall be required on any nonemergency expenditure that exceeds $200,000. The Service shall notify the Board of any nonemergency expenditure that exceeds $25,000. The Service may adopt rules and regulations to provide a process to resolve disputes between the Service and its contractors, that may include alternative dispute resolution by the parties to the dispute. The Service: May create and establish 1 or more project reserve funds in such amounts as the Board considers appropriate, including the following project reserve funds: An Eastern Correctional Institution Turbine Project Contingency Fund; A Department of Natural Resources Project Contingency Fund; and A Reimbursable Project Contingency Fund; and Subject to paragraph (2) of this subsection, may pay into such funds: Any money appropriated and made available by the State for the purposes of such funds; Any proceeds from the sale of bonds or notes, to the extent provided in the resolution authorizing the issuance of the bonds or notes; Revenues derived from a project of the Service; and Any other money that may be received by or otherwise made available to the Service from any other source or sources which the Service has designated for deposit into such funds. Money held in or credited to a project reserve fund established under this subsection shall be used solely to accomplish the purposes of this subtitle, as determined by the Board and, subject to paragraph (3) of this subsection, may be retained by the Service in the appropriate project reserve fund based on the project for which the money was received by the Service. The Service may credit to a project reserve fund established under paragraph (1)(i)1 through 3 of this subsection only money that is reimbursable to the State. The Service may not retain more than: $5,000,000 in the Eastern Correctional Institution Turbine Project Contingency Fund; $500,000 in the Department of Natural Resources Project Contingency Fund; or $3,000,000 in the Reimbursable Project Contingency Fund. If at the end of a fiscal year the balance in a project reserve fund exceeds the limits stated in subparagraph (ii) of this paragraph, the Service shall revert the excess to the State fund from which the money in the project reserve fund was originally appropriated. Money appropriated or made available to the Service by the State shall be expended in accordance with the provisions of this subtitle. Subject to paragraph (2) of this subsection, the Service shall submit annually a full and detailed budget reflecting the operating and capital program of the Service to the Department of Budget and Management for inclusion for informational purposes in the State budget book. The budget submitted under paragraph (1) of this subsection shall: Be submitted in a manner required by the Department of Budget and Management; and Specify the source of the Service’s revenues in a manner required by the Department of Budget and Management.

The staff of the Service shall consist of such employees as the Service may determine are necessary to carry out the duties of the Service. The Service shall adopt regulations to govern the employees of the Service. The Service shall, in accordance with the requirements of Title 3 of the State Personnel and Pensions Article, establish a personnel system that: Is based on merit and compensates employees based on performance; Includes fair and equitable procedures for the redress of grievances and for the hiring, promotion, discipline or discharge for just cause, and laying off of employees; and Allows State employees who are employed by the Service prior to July 1, 1993, and members of the State retirement or pension systems to continue membership in the Employees’ Retirement System of the State of Maryland or the Employees’ Pension System of the State of Maryland. The Service shall be liable for and shall pay to the State Retirement Agency the employer’s share of employee retirement or pension costs for Service employees who participate in the State retirement or pension systems, as provided in Title 21, Subtitle 3 of the State Personnel and Pensions Article. The Service shall be liable for and shall pay the employer’s share of health insurance costs for Service employees. For each open position in the Service that is not assigned to a project, the Service shall reasonably advertise, conduct a search, and conduct a competitive interview process. In carrying out the requirements of this subsection, the Service may: Create or abolish any position other than one specifically provided for in this subtitle; Determine employee qualifications, appointment and removal procedures, terms of employment including compensation, benefits, holiday schedules, and leave policies, and any other matter concerning employees; and Subject to the provisions of subsection (c) of this section, take such actions that are necessary for the transition to a new personnel system. All State employees who are employed by the Service prior to July 1, 1993, shall be provided the opportunity to transfer to the Service’s new personnel system without loss of pay. All nonstate employees of the Service employed prior to July 1, 1993, shall be members of the new personnel system. All persons hired by the Service on or after July 1, 1993, shall be members of the new personnel system. State employees who transfer to the Service’s new personnel system shall, unless fairly compensated for the leave by the Service, retain vacation leave, sick leave, and personal and compensatory leave earned prior to the date of transfer until the time that the leave would normally expire under the regulations adopted under the State Personnel and Pensions Article. The Executive Director and the Secretary of Personnel will use their combined resources to facilitate, prior to January 1, 1995, the placement, reassignment, or transfer of Service State employees who elect not to transfer to the new personnel system. Classified State employees who elect not to transfer to the new personnel system shall retain all rights and privileges of the State Personnel Management System until January 1, 1995. State employees who are not classified in the State Personnel Management System who elect not to transfer to the new personnel system shall retain such rights and privileges as existed on July 1, 1993, until January 1, 1995. The Service shall permit continuation of the rights of employee organizations in existence on July 1, 1993, to represent employees and to collect union dues through a checkoff system. Employees of the Service may enter into binding collective bargaining agreements establishing wages, hours, pension rights, or working conditions in accordance with the provisions of Title 3 of the State Personnel and Pensions Article.

Except as provided in § 3–103.1(c)(8) of this subtitle, the Service is exempt from the provisions of Division I of the State Personnel and Pensions Article that govern the State Personnel Management System.

On or before October 31, 2021, the Board shall adopt a conflict of interest policy for members of the Board that includes: Standards for the disclosure of financial interests; Standards for Board member participation in contracts with the Service in accordance with this subtitle, including an attestation that the Board member has complied with the conflict of interest standards adopted by the Board; Standards for recusal from voting; A requirement that a Board member may not use the Board member’s position on the Board for personal gain when contracting with the Service; and A requirement that a Board member provide an attestation of any business relationship with the Service. The Board shall send a copy of the conflict of interest policy adopted under subsection (a) of this section to the Governor, the President of the Senate, and the Speaker of the House: After the policy is initially adopted; and Each time a substantive change is made to the policy.

Board members shall observe the same standard of care required of corporate directors under § 2–405.1 of the Corporations and Associations Article. The Board may not award a severance package to an executive of the Service if the executive accepts another position in the State government within 1 year after the date on which the executive’s employment with the Service is terminated. Any former executive of the Service awarded a severance package in violation of this subsection shall reimburse the Service for the value of the severance package within 1 year after terminating employment with the Service. The Executive Director shall appoint a Diversity Officer to: Coordinate the development and implementation of a diversity policy for the Service; and Assist employees with the resolution of grievances relating to alleged violations of: The Service’s diversity policy; or State or federal antidiscrimination laws. On or before December 1, 2021, the Board shall adopt or readopt policies, consistent with this section, governing: Severance packages; Bonuses, including a limit on bonuses for executives calculated as a percentage of the executive’s salary; Tuition reimbursements, including limits on the amounts that may be reimbursed; Expense reimbursements, including: Limits on the amounts that may be reimbursed; Limits on how long an expense may be reimbursed after it is incurred; and Requirements regarding the nexus between reimbursable expenses and Service functions; Workforce diversity; Whistleblower complaints; Travel; and The use of cars, laptops, cell phones, and other vehicles and devices owned by the Service, including policies on whether and how these vehicles and devices may be transferred to an employee or another agency. The Board periodically shall review the policies required under this subsection and revise the policies as needed. In accordance with § 2–1257 of the State Government Article, the Board shall submit a report containing copies of the policies required under this subsection to the Legislative Policy Committee, the Senate Budget and Taxation Committee, and the House Appropriations Committee: On or before December 31, 2021; and Within 30 days after any policy is revised. Board members, the Executive Director, and the Deputy Director shall receive annual training on: Ethics; Harassment; Diversity; and Policies adopted under subsection (d) of this section. In addition to the training specified in paragraph (1) of this subsection, Board members shall receive annual training on the standard of care required under subsection (a) of this section. On or before December 31, 2021, and each December 31 thereafter, the Service shall, in accordance with § 2–1257 of the State Government Article, report to the General Assembly on the Service’s efforts to reduce greenhouse gas emissions in furtherance of the goals and requirements established under Title 2, Subtitle 12 of the Environment Article. This section may be cited as the Maryland Environmental Service Reform Act of 2021.

On or before December 31, 2021, and each December 31 every 5 years thereafter, the Board shall obtain an assessment of the Board’s operations by an independent consultant or accountant. The assessment required under subsection (a) of this section shall include an evaluation of: The structure of the Board, including the Board’s: Composition; Charter, bylaws, and other governing documents and procedures; Diversity; Subcommittees or workgroups; and Frequency of meetings; The dynamics and functioning of the Board, including: The Board’s annual calendar; Access to information; Communication with Service personnel; Planning; and Cohesiveness and conduct of Board meetings; The Board’s role in the Service’s short–term and long–term strategy; The financial reporting process, internal audit, and internal controls; The Board’s role in monitoring the Service’s policies, strategies, and systems; The Board’s role in supporting and advising the Service; The role of the Chair of the Board; and Any other issue relevant to the Board’s operations. The Board shall: Review each assessment required under this section at a meeting of the Board; and Make any changes or recommendations that the Board considers appropriate based on the assessment. The Board shall submit each assessment required under this section to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly. The Service shall post a copy of each assessment on the Service’s website, including a link to a copy of the most recent assessment on the homepage of the website.

The Service has all powers necessary for carrying out the purposes of this subtitle, including the following rights and powers set forth in this section. To have perpetual existence as a corporation. To adopt bylaws, rules, regulations, policies, and procedures for the regulation of its affairs and conduct of its business. To adopt an official seal and alter it. To maintain one or more offices at a place or places it chooses. To appoint agents and employees, to prescribe their duties, and fix their compensation as set forth in this subtitle. To sue and be sued. To acquire, construct, reconstruct, rehabilitate, improve, maintain, lease as lessor or as lessee, repair and operate projects within or without the State. The Service shall establish reasonable rules and regulations for the use of any project. It may acquire, purchase, hold, lease as lessee, and use any franchise and any property, real, personal or mixed, tangible or intangible, or any interest therein necessary to carry out the purposes of the Service. It may sell, lease as lessor, transfer, and dispose of any property or interest in it that it has acquired. To acquire by gift, purchase, or the exercise of the right of eminent domain in the manner prescribed by law lands, structures, real or personal property rights, rights–of–way, franchises, easements, and other interests in lands, including lands lying underwater and riparian rights which are located within and without the State as it considers necessary or convenient for the construction or operation of a project, upon terms and at prices considered by the Service to be reasonable and can be agreed upon by the Service and the owner of the interest, and to take title to the interest in the name of the Service. At any time ten days after the return and recordation of the verdict or award in any condemnation proceeding, the Service may take possession of the property condemned, upon paying to the clerk of the court the amount of the award and all costs taxed to that date, notwithstanding any appeal or further proceeding by defendant. At the time of the payment, the Service shall give its corporate undertaking to abide by any judgment in any appeal or further proceedings. To borrow money and issue bonds or notes for the purpose of paying all or any part of the cost of any one or more projects or for any other purpose of the Service; to provide funds to be paid into any debt service reserve fund; to secure the payment of the bonds or notes or any part thereof by pledge or deed of trust of all or any part of its revenues or other available money or by pledge, mortgage, or deed of trust of any one or more facilities or properties; to combine projects for financing purposes and to make agreements with or for the benefit of the purchaser or holder of the bonds or notes, with the issue of the bonds or notes, whether issued or to be issued, as the Service may deem advisable; and in general to provide for the security of the bonds or notes and the rights of their holders. To combine, after consultation with the municipalities affected, one or more water supply, wastewater purification, solid waste disposal, or energy project with any other project as a single system for the purpose of operation or financing. To fix, alter, charge, and collect rates, fees, and charges for the use of or for the services, products, or energy furnished or produced by the Service. To enter into contracts with the federal or any state government, or any unit, instrumentality, or subdivision thereof, or with any municipality or person within or without the State, providing for or relating to the furnishing of services to or the facilities of any project of the Service, or in connection with the services or facilities provided by any water supply project, solid waste project, wastewater purification project, or energy project owned or controlled by the other contracting party, including contracts for the construction and operation of any project in the State or in any other state. These contracts may make provision for: The payment by the other contracting party to the Service of a fixed amount for the collection, processing, treatment, storage, transporting, use, or disposal of a stated amount of solid waste (whether or not the stated amount of solid waste is collected, processed, treated, stored, transported, used, or disposed of), or of all or any portion of the operating expenses of one or more projects; The utilization by the other contracting party of one or more projects for the processing, treatment, storage, transporting, use, or disposal of all or any portion of solid waste over which such party has control; The collection by the other contracting party or its agents or by agents of the Service of fees, rates, or charges for the services and facilities rendered to a municipality or its inhabitants, and for the enforcement of delinquent charges for such services and facilities; or The abandonment, restriction, or prohibition of the construction or operation of competing facilities. The provisions of any contract with a municipality shall be deemed to be for the benefit of bondholders or noteholders as designated by the Service and may be made irrevocable so long as any bonds or notes of the Service secured by such contract are outstanding. To make any contract or agreement the Service determines to be necessary or incidental to the performance of its duties and to the execution of the purpose of and the powers granted by this subtitle, including contracts with the federal or any state government, or any unit, instrumentality, or municipality thereof, or with any person, on terms and conditions the Service approves. The Service may make contracts or agreements relating to: The use by the other contracting party or the inhabitants of any municipality of any project acquired, constructed, reconstructed, rehabilitated, improved, or extended by the Service under this subtitle or the services therefrom or the facilities thereof; The use by the Service of the services or facilities of any water supply system or project, solid waste system or project, or liquid waste system or project, not owned or operated by the Service; The sale of any fuel, steam, electricity, energy, waste product, or other material or resource derived from the operation of any project; The acceptance, processing, treatment, use, and disposal of solid wastes by one or more projects; or The employment or retention of consulting and other engineers, superintendents, financial advisors, attorneys, accountants, and other employees, advisors, or agents as in the judgment of the Service are necessary or desirable. The contracts and agreements of the Service may provide for the collecting of fees, rates, or charges for the projects provided by the Service and for the enforcement of delinquent charges for the projects. The provisions of any contract or agreement of the Service, and of any ordinance or resolution of the governing body of a municipality enacted pursuant thereto, shall be deemed to be for the benefit of bondholders or noteholders. To enter upon and excavate any municipal street, road, alley, highway, or any other public way for the purpose of installing, maintaining, and operating a water supply, solid waste disposal, wastewater purification, or energy project provided for under this subtitle. The Service may construct, reconstruct, rehabilitate, or extend in the street, road, alley, or highway, a water supply facility, sewer or storm drain, energy transmission facility, or any appurtenance thereof, without a permit or the payment of a charge subject, however, to reasonable regulation established by the governing body of any municipality having jurisdiction in the particular respect. If any municipal street, road, alley, or highway is to be disturbed, the governing body shall be notified within a reasonable period of time, and the street, road, alley, or highway shall be repaired and left by the Service in the same condition as, or in a condition not inferior to, that existing before the street, road, alley, or highway was torn up. The Service shall bear every incidental cost. To enter upon lands, waters, or premises as is necessary or desirable for the purposes of making surveys, soundings, borings, and examinations to accomplish any purpose authorized by this subtitle. The Service is liable for actual damage done. To make application for, receive, and accept from any state or federal government, or any unit, instrumentality, or subdivision thereof, grants for or in aid of the planning, financing, construction, acquisition, maintenance, or operation of any project, and to receive and accept aid or contributions from any source of money, property, labor, or other things of value, to be held, used, and applied only for the purpose for which the grants and contributions are made in the furtherance of the purposes of this subtitle. In those cases involving federal and State grants, including, but not limited to, grants administered by the Department of the Environment for the collection and treatment of sewage and industrial wastes under the Sanitary Facilities Fund, in Title 9 of the Environment Article, the Service shall be eligible the same as a municipality. To make directly, or through the hiring of consultants, any plans, surveys, investigations, and studies relating to water supply, liquid and solid wastes transportation, purification, disposal techniques, recycling, energy production and transmission, conservation of resources, and management methods or the effects of these techniques, and methods, in order to improve or evaluate the effectiveness or economy of its services and operations. The Service may charge in whole or in part the costs of the investigations and studies against one or more projects or Service districts, or it may include them in whole or in part in its general operating expenses depending on the expected applicability of the studies and investigations. The Service may supplement grants or other aids received from the federal government or from other sources to assist in carrying out the purposes of this subtitle. Consultants hired under this subsection may not be deemed to be providing architectural or engineering services as those terms are defined in § 11–101 of the State Finance and Procurement Article. To conduct hearings and investigations for the furtherance of the purposes of this subtitle. To take and hold title to any project that may be transferred to the Service, and to assume jurisdiction over and provide for the maintenance and operation of the project, all on such terms as may be mutually agreed upon between the Service and the transferor. The Service may contract with any municipality to assume the payment of the principal of and interest on obligations or indebtedness of such municipality incurred in connection with any project and may undertake to operate any project in such a manner as to provide for the payment of all outstanding obligations or indebtedness applicable to the project and the interest thereon and to transfer to the appropriate municipality an amount equal to the debt service payments prior to the applicable payment date. Subject to the approval of the Board of Public Works, the State may lease, lend, grant, or otherwise convey to the Service any property that is necessary for the purposes of this subtitle. To do all things necessary to carry out its purposes and for the exercise of the powers granted in this subtitle. Except as provided in §§ 3–109 and 3–110 of this subtitle, the Service does not have any power to construct, establish, or operate any new solid waste disposal project within the boundaries of any county or municipal corporation without the express consent of the governing body of the county or municipal corporation. To permit a municipality to construct, operate, maintain, expand, relocate, replace, renovate, or repair facilities provided for in this subtitle when the Service certifies that it is not in a position to provide the necessary construction, operation, maintenance, expansion, relocation, replacement, renovation, or repair of facilities within the municipality. Notwithstanding other provisions in this subtitle and limited to the circumstances in this subsection, a municipality shall finance construction, operation, maintenance, expansion, relocation, replacement, renovation, or repair of facilities in accordance with its statutory authority, including the receiving of State and federal grants if available. The municipality may construct, operate, maintain, expand, relocate, replace, renovate, or repair these facilities. In making plans, surveys, studies, and investigations under this subtitle, the Service shall include in its findings its statement of the impact that a project may have on the site on which the project is to be located if that site has cultural, historic, or social significance. To create, with the approval of the Board, private corporations for purposes consistent with this subtitle. To exercise all the corporate powers granted Maryland corporations under the Maryland General Corporation Law.

The Service is responsible for carrying out the following general activities subject to the limitations stated in this section. Planning, integrating, and establishing geographic service regions and districts, in cooperation with affected municipalities and based upon approved State–county master plans for water and sewerage, and solid waste disposal as provided in the Environment Article, as well as other plans and studies permitted by this subtitle. Research and developmental studies and investigations into improved methods and techniques of water supply, liquid wastes, solid wastes, and energy generation, acquisition, transportation, processing, recycling, purification, disposal and management, and technical consultation and assistance to design, management, and operation personnel of the Service and, pursuant to an order or request, to appropriate municipalities or persons possessing similar responsibilities. To the extent appropriate in each instance, acquisition, design, construction, reconstruction, rehabilitation, improvement, operation, maintenance, and repair of a water supply project, wastewater purification project, and solid waste disposal project, pursuant to an order of the Secretary of the Environment as further provided in §§ 3–109 and 3–110 of this subtitle; or pursuant to a mandatory agreement to provide requested services, as provided in § 3–107 of this subtitle; or pursuant to an approved five–year plan, as provided in § 3–106 of this subtitle. Except upon request of a municipality and pursuant to a contract between the Service and the municipality, the Service may not acquire, construct, operate, or establish a wastewater purification project or solid waste disposal project, as the case may be, for (1) any area or district which, in the determination of the Secretary of the Environment, is receiving adequate service from a project owned by a municipality and operated in compliance with applicable laws and regulations; (2) any area or district which, in the determination of that Secretary, will receive, within a reasonable time, adequate service from a project owned by a municipality and operated in compliance with applicable laws and regulations; or (3) dredging or dredged material disposal projects. Execute the powers and perform the duties set forth in Title 7, Subtitle 4 of the Environment Article, including the financing, acquisition, leasing, and operation of hazardous waste disposal facilities.

The Executive Director, after consultation with the Secretary of Natural Resources, the Secretary of the Environment, the Secretary of Planning, and the municipalities affected, shall determine appropriate boundaries for water supply service regions, wastewater purification service regions, and solid waste disposal service regions. Service regions shall be based upon needs set forth in, and provide integration of, approved State–county master plans for water and sewerage or solid waste disposal, adopted pursuant to the Environment Article, but also may take account of other plans and studies. As soon as possible after the determination of appropriate boundaries, the Executive Director, after consultation with the municipalities affected, shall establish priorities for designating water supply service regions, wastewater purification service regions, and solid waste disposal service regions and formally designate the regions. Identical service regions need not be designated for water supply, wastewater purification and solid waste disposal projects. No part of the State may be included in more than one of these service regions. As soon as possible after designation of a service region, the Service shall cause surveys, plans, studies, and estimates to be made, and after consultation with the municipalities located within the service region, prepare a five–year plan for each service region for the most effective and economical means of providing water supply, wastewater purification and solid waste disposal projects. In preparing a five–year plan, the Service shall consider the effects of public versus private ownership of water and wastewater facilities upon the provision of dependable, effective, and efficient water and wastewater services. Except as required by an order of the Secretary of the Environment under § 3–109 or § 3–110 of this subtitle, the five–year plans shall be consistent with the approved county water and sewerage plans adopted in compliance with Title 9 of the Environment Article. The five–year plans shall designate the existing facilities or portions that are to be transferred to the jurisdiction of the Service; improvements to and extension of existing facilities; construction of new water supply, wastewater purification, and solid waste disposal projects; proposed methods of acquisition, ownership, and operation by the Service or by affected municipalities and persons, or both together with anticipated expenditures, sources of revenue, and charges for projects to be levied against municipalities, persons, and property; and related matters the Service finds necessary or convenient. The Service may adopt a five–year plan only after at least one public hearing in each of the counties affected. At least 60 days before a hearing, the proposed five–year plan shall be submitted for review and comment to each county, to each municipality which owns or operates a public facility affected by the plan, and to the Secretaries of Natural Resources and the Environment and the Secretary of Planning. A five–year plan can be adopted by the Service only after it is submitted to and approved by resolution of the governing body of each county and after consultation with the governing body of each municipality which owns or operates a public facility affected by the plan, or if the plan is not approved by each of the appropriate governing bodies within 120 days following submission of the plan for approval of the governing bodies, after the plan is approved by joint resolution of the General Assembly. If a joint resolution of the General Assembly approving a five–year plan contains any amendments or modifications to the plan, those amendments and modifications repeal the plan to the extent of any inconsistency. The provisions of this subtitle do not authorize the Service to take any action which would be inconsistent with the amendments or modifications without the approval of the governing body of each county and after consultation with the governing body of each municipality which owns or operates a public facility included within the plan. Notwithstanding any other provision of this subtitle, if any bonds or notes issued by the Service with respect to a project in a service area are outstanding and unpaid, any 5–year plan, contract, or charges relating to a service district or project may not be amended, terminated, or reduced, as the case may be, without the written consent of the Service, and any 5–year plan, contract, or charges to the service district remain in full force and effect so long as any such bonds or notes remain outstanding and unpaid. Upon adoption of a five–year plan by the Service, service districts shall be established in the manner and following the schedule set forth in the plan. Immediately thereafter, the Service shall proceed with the acquisition, extension, and construction of facilities set forth in the plan and assume jurisdiction over and provide for the maintenance and operation of water supply, wastewater purification and solid waste disposal projects included in the plan, for those projects within the service region and districts placed under the jurisdiction of the Service by the plan. The Service may enter into contracts with municipalities and persons within a service district and stipulate the projects to be provided, the amount of compensation for acquiring existing projects, the charges to be apportioned to the municipalities and persons, the manner of repaying the Service for these charges, and the effective date or dates the Service will initiate the provision of projects. Existing projects providing water supply, wastewater purification and solid waste disposal services, including all rights, easements, laboratory facilities, vehicles, records and all other property, equipment, and furnishings necessary and normally associated with the operation of the facility, shall be transferred to the sole ownership of the Service at the time designated in the five–year plan. Compensation for existing projects may be based on the original cost of the project minus an allowance for depreciation, or on other terms and conditions satisfactory to the municipality or person transferring the project. All costs and obligations assumed by the Service incidental to the transfer of ownership of an existing project shall be included in the charges apportioned to the service district. The Service shall review, update, and readopt the five–year plan for each service region biennially after review by the municipalities and persons concerned. The five–year plan may be updated and readopted by the Service only after at least one public hearing in each of the counties affected. Upon updating and readopting, the Service shall take the actions necessary to implement the revised plan. The Service by formal action, and after consultation with the municipalities affected, may extend the boundaries of service regions or districts, combine two or more service regions or districts or parts thereof and combine, abandon, extend, enlarge, improve, or make any other modification of projects serving one or more service districts, but no change may diminish any existing level of service rendered to the district or districts concerned. Within a wastewater purification service district, the Service is responsible for the purification and disposal of liquid waste as set forth in the five–year plan, including the residue resulting from purification, that is delivered to the Service projects through the sewer pipes of any municipality or person in the Service district, except that the Service may exclude or require preconditioning of any waste that might otherwise be harmful to structures or purification processes or endanger the health or safety of workers. Within the Service district no municipality or person may discharge liquid waste onto the surface of the ground or into the waterways of the State except through the projects of the Service or of a municipality or person designated by the plan or under reasonable conditions the Service stipulates. Within a solid waste disposal service district the Service is responsible for the disposal of solid wastes as set forth in the five–year plan. Within the service district no municipality or person may dispose of solid wastes except through the projects of the Service or of a municipality or person designated by the plan, or under reasonable conditions the Service stipulates. Within a water supply service district, the Service shall be responsible for supply and distribution of water as set forth in the five–year plan. With the consent of the county or municipal corporation in which a project is to be located, the Service may implement a project not provided for in the five–year plan adopted under this subtitle, service region, or service district established under this section or if no five–year plan, service region, or service district has been established.

Any municipality or person may request the Service to provide the water supply, wastewater purification, solid waste disposal, or energy projects, or any other services, authorized by this subtitle. The request shall set forth the type of proposed project or services to be furnished and the proposed boundaries of the area within which a project or services are requested. Notwithstanding any limitations or other provisions to the contrary of Division II, Title 9, Subtitle 2 or Subtitle 3, Title 10, or Title 11 of the Local Government Article, or of any charter or local law regulating the procurement or awarding of public contracts, a municipality may enter into contracts with the Service for the purpose of the Service providing any of the projects or services requested by the municipality. As soon as possible after receipt of a duly authorized request from a municipality or person, the Service shall provide a proposal or a proposed contract with the municipality or person in accordance with the provisions of this subtitle specifying the type of project or services to be provided, whether or not a service district will be established, the boundaries and effective date of any service district, and the terms, conditions, and costs under which the project or services will be provided. Except as provided in §§ 3–109 and 3–110 of this subtitle, the Service is not obligated to provide a project or services to a municipality or a person before a contract has been executed by the parties. The Service shall provide any services and provide, maintain, and operate a project in accordance with the terms in the contract. For the purposes of this subsection, the express powers contained and enumerated in Division II and Title 10 of the Local Government Article and in the Charter of the City of Baltimore are deemed to incorporate and include the power and authority contained in this subsection. The charges levied against a service district shall be reduced by the full amount of federal and State grants which the Service receives and is entitled to retain to defray the cost of any project within the service district. Existing facilities providing service of the type requested, including all rights, easements, laboratory facilities, vehicles, records, and all other property, equipment, and furnishings necessary and normally associated with the operation of the facility, shall be transferred to the sole ownership of the Service on the date a service district comes into existence unless the Service determines that it not be so transferred. Compensation for existing projects may be based on the original cost of the project minus an allowance for depreciation, or on other terms and conditions satisfactory to the municipality or person transferring the project. All costs and obligations assumed by the Service incidental to the transfer of ownership shall be included in the charge levied against the service district. At the request of any person or municipality having the responsibility for the collection of liquid waste or solid waste, the Service may enter into a contract to provide management and operation of waste collection services in any service district as an adjunct to the mandatory provision of projects as set forth in subsections (a) through (d) of this section, if: As a condition to the provision of management and operation of waste collection services, the municipality or person enters into a contract upon terms the Service determines reasonable; and The Service and the municipality or person requesting collection services determines by agreement from time to time the charges including the amount and frequency of payments to the Service. Except as provided in paragraph (2) of this subsection, the review and approval of the Board of Public Works shall be required on any contract for the provision of requested services with a value of $250,000 or more. The review and approval of the Board of Public Works is not required on a contract for the provision of: Requested services to a unit of State or local government; or Services to the federal government.

In calculating charges for water supply, wastewater purification, solid waste disposal, and energy projects, products, or services or in determining the costs to be levied against a municipality, person, or property in a service district established pursuant to this subtitle, the Service shall require that the charges reflect the full costs of providing the projects, products, or services. The charges and costs to be levied against any particular municipality, person, or property located within a service district shall take account of: Whether the property is eligible for water or sewerage service in accordance with the approved State–county master plans for water and sewerage adopted under Title 9 of the Environment Article; The value and capacity of any existing facility transferred by the municipality or person to the Service; and The costs and obligations assumed by the Service incidental to the transfer of the facility. To the extent deemed reasonable and practicable by the Service, charges for solid waste or wastewater purification projects or services also shall be based on but not necessarily limited to a formula reflecting the volume and characteristics of the wastes as they influence transportation, purification, final disposal, and time pattern of discharge. At least 60 days before establishing or adjusting charges in a service district, the Service shall notify the residents of the service district by: Subject to subparagraph (ii) of this paragraph, publishing notice of the proposed charges, at least once a week for 2 weeks, in at least one newspaper of general circulation in the municipality in which the service district is located and hold a public hearing on the proposed charges; and Using one or more of the following methods: Posting the proposed charges on the homepage of the Service website for at least 2 consecutive weeks; If the service district is already established and there is a proposed adjustment to charges in the service district, sending an e–mail or a text notification of the proposed charges at least once a week for 2 consecutive weeks to all affected ratepayers who have provided contact information; or Providing notice of the proposed charges by mail through the United States Postal Service to each affected property owner and physical address affected. The published notice under subparagraph (i)1 of this paragraph shall: Be placed with legal notices; Have the headline of the notice in bold print, with all letters capitalized; and Have the text of the notice, other than the headline, in upper and lower case letters. The charges shall become effective on the date set by the Service. The Service may, by resolution of the Board, provide that the charges are chargeable against all or part of the lots or parcels of land in the service district and constitute a first lien on such property. The resolution may establish reasonable times and methods of collection of the charges, which may be levied and collected by the Service and have the same priority and rights and bear the same interest and penalties and in every respect be treated the same as taxes of the State. The charges may be levied and collected notwithstanding the absence of a contract between the Service and the municipality, person, or property against whom the charge is imposed. If a municipality fails to pay the Service for projects or services provided pursuant to this subtitle within 60 days of the due date, as established by contract, all State funds, or that portion of them required, relating to the income tax, the tax on racing, the recordation tax, the tax on amusements and the license tax thereafter to be distributed to the municipality shall be paid by the Comptroller of Maryland directly to the Service until the amount paid to the Service is equal to the amount due the Service by the municipality. If a person fails to pay the Service for projects or services provided in accordance with this subtitle within 60 days of the due date, as established by the Service, the unpaid amount constitutes a statutory lien against the real property served, shall be referred to the Attorney General for collection, and may be collected through a tax sale. The governing body of any county may charge the Service a fee for final disposal of solid waste at any solid waste disposal project located in that county provided that any fees charged the Service are not greater than those charged other users of any solid waste disposal project.

Upon failure of a municipality to comply with an order of the Secretary of the Environment to provide a sewerage system or refuse disposal works as provided for in Title 9 of the Environment Article, the Secretary of the Environment shall direct the Service to install or put into operation sewerage or refuse disposal facilities to satisfy the requirements of the order. Except as provided in subsection (e) of this section, upon receipt of the directive from the Secretary of the Environment, the Service shall proceed to install and put into operation sewerage or refuse disposal projects to comply with the directive. Every cost the Service incurs to construct and operate the projects shall be charged to the municipality against which the order is issued. Funds to pay the Service for construction and operation of projects may be raised under Title 9 of the Environment Article. Upon terms satisfactory to the Service and the municipality, the Service may enter into an agreement with the municipality to continue to operate the sewerage system or refuse disposal works installed by the Service under the provisions of this subsection. In this event, the municipality shall enter into a contract with the Service for the establishment of a service district as provided in § 3–107(e) of this subtitle. Upon failure of a person to comply with an order of the Secretary of the Environment to abate pollution as provided for in Title 9 of the Environment Article, the Secretary of the Environment shall direct the Service to provide projects necessary to abate the pollution. Except as provided in subsection (e) of this section, upon receipt of the directive from the Secretary of the Environment, the Service shall provide the projects necessary to abate the pollution and the person shall discharge or deliver his wastes only to a service project or avail himself of the projects provided by the Service to abate the pollution. The cost of projects provided by the Service to abate pollution under the terms of this subsection shall be borne by the person against whom the order to the Secretary of the Environment was issued. The person and the Service shall determine by agreement the costs, rental, charges, or other fees to be paid by the person to the Service. If the fees and charges remain unpaid for a period of 60 days, the unpaid bills become a lien against the property served, if it is recorded and indexed as provided in this subtitle, and shall be referred to the Attorney General for collection. All projects provided by the Service under this subsection remain under the control and operation of the Service. It is unlawful for a person provided with projects by the Service under this subsection to duplicate or use any other project serving the same purpose. Upon the failure of a municipality or person to comply with an order of the Secretary of the Environment to correct deficiencies on the operation of sewerage systems or refuse disposal works as provided in Title 9 of the Environment Article, the Secretary of the Environment shall direct the Service to take charge of and operate the systems or works to secure the results demanded by the Secretary of the Environment. Except as provided in subsection (e) of this section, upon the receipt of the directive from the Secretary of the Environment, the Service immediately shall take charge of and operate the systems or works to secure the results set forth in the directive of the Secretary of the Environment. All costs for maintenance, operation, and other services including legal fees incidental to taking possession of the sewerage system or refuse disposal works shall be charged to the municipality or person against which or whom the original order of the Secretary of the Environment was served. Funds to pay the Service for services rendered under this subsection shall be raised in the case of a municipality under Title 9 of the Environment Article. If the order is issued against a person, the Service shall bill the person for the full cost of services rendered. If payment is not made within 60 days, the costs become a lien against the sewerage system or refuse disposal works if it is recorded and indexed as provided in this subtitle, and the Executive Director shall refer the matter to the Attorney General for collection. Upon failure of a municipality or person to comply with an order of the Secretary of the Environment to extend or alter a sewerage system or refuse disposal works as provided in Title 9 of the Environment Article, the Secretary of the Environment shall direct the Service to make alterations or extensions to the systems or works, or install a new system or works as the Secretary of the Environment deems necessary to correct the improper conditions. Except as provided in subsection (e) of this section, upon receipt of the directive from the Secretary of the Environment, the Service shall assume jurisdiction over the systems or works and make the alterations, extensions, or new construction required to comply with the directive of the Secretary of the Environment. All costs, including legal fees incidental to assuming jurisdiction over the system or works, shall be charged to the municipality or person against which or whom the order of the Secretary of the Environment was issued. Funds to pay the Service for costs incurred as a result of actions taken under this subsection may be raised as provided in Title 9 of the Environment Article. If the order was against a person, the Service shall charge the person with the cost of making the necessary improvements to comply with the directive of the Secretary of the Environment. If the person fails to pay within 60 days, the cost becomes a lien against the property served if it is recorded and indexed as provided in this subtitle, and the matter shall be referred to the Attorney General for collection. In the event the Service determines, at any time, that it will be unable to recoup all or a portion of its costs from the municipality or persons subject to the order of the Secretary of the Environment, the Service shall provide to the Secretary a full accounting of all costs incurred or anticipated to be incurred by it in complying with the Secretary’s directive. Within 30 days of receipt of the accounting, the Secretary may request that the Service provide additional information. Within 90 days of receipt of the accounting or, when applicable, the additional information, the State shall pay to the Service the full amount of the Service’s costs that are not paid or reasonably expected to be paid by the municipality or persons. The State’s payment of any amount to the Service does not preclude the State from seeking or obtaining reimbursement from the municipality or persons subject to the order of the Secretary. The Service shall cooperate fully with the Secretary in seeking reimbursement from the municipality or persons.

Upon the failure of a person to comply with an order to abate pollution provided for in Title 7, Subtitle 2 or Title 9, Subtitle 3 of the Environment Article, the Secretary of the Environment, if no remedy provided in Title 7, Subtitle 2 or Title 9, Subtitle 3 of the Environment Article is sought against that person, may direct the Service to provide projects necessary to abate the pollution. Except as provided in subsection (d) of this section, upon receipt of the directive from the Secretary of the Environment, the Service shall provide the project necessary to abate the pollution, and the person shall discharge or deliver his wastes only to a Service project or avail himself of the projects provided by the Service to abate the pollution. The cost of projects provided by the Service to abate pollution under the terms of this section shall be borne by the person against whom the order to abate pollution was issued. That person and the Service shall determine by agreement the costs, rental, charges, or other fees to be paid by the person to the Service. If the fees and charges remain unpaid for a period of 60 days, the unpaid amount becomes a lien against the property served if it is recorded and indexed as provided in this subtitle, and the matter shall be referred to the Attorney General for collection. All projects provided by the Service under this section remain under the control and operation of the Service. It is unlawful for a person provided with projects by the Service under this section to duplicate or use any other project serving the same purpose. In the event the Service determines, at any time, that it will be unable to recoup all or a portion of its costs from the persons subject to the order of the Secretary of the Environment, the Service shall provide to the Secretary a full accounting of all costs incurred or anticipated to be incurred by it in complying with the Secretary’s directive. Within 30 days of receipt of the accounting, the Secretary may request that the Service provide additional information. Within 90 days of receipt of the accounting or, when applicable, the additional information, the State shall pay to the Service the full amount of the Service’s costs that are not paid or reasonably expected to be paid by the persons. The State’s payment of any amount to the Service does not preclude the State from seeking or obtaining reimbursement from the municipality or persons subject to the order of the Secretary. The Service shall cooperate fully with the Secretary in seeking reimbursement from the municipality or persons.

Except as provided in § 3-104 of this subtitle, or in an approved five-year plan adopted under this subtitle, it is unlawful for a municipality or person provided with any projects by the Service under this subtitle to duplicate or use any other similar projects serving the same purpose unless the Service expressly permits it to do so.

The Service may provide by resolution, adopted by a majority of the Board, for the issuance of bonds and notes of the Service. The Board has absolute discretion to determine with respect to the bonds or notes of any issue: (1) the date or dates of issue; (2) the date or dates and amount or amounts of maturity, provided only that no bond of any issue may mature later than 40 years from the date of its issue; (3) the rate or rates of interest payable thereon and the date or dates of such payment; (4) the form or forms, denomination or denominations, manner of execution and the place or places of payment thereof, and the interest thereon, which may be at any bank or trust company within or without the State; (5) whether the bonds or notes or any part thereof are made redeemable before maturity and, if so, upon what terms, conditions, and prices; (6) whether there shall be a debt service reserve fund and, if so, its amount; and (7) any other matter relating to the form, terms, conditions, issuance, and sale thereof.

If any officer whose signature or a facsimile of whose signature appears on any bonds or notes ceases to be the officer before the delivery of the bonds or notes, the signature or facsimile is nevertheless valid and sufficient for all purposes as if he had remained in office until delivery. Notwithstanding any other provision of this title or any recitals in any bonds and notes issued hereunder, all bonds and notes shall be deemed to be negotiable instruments under the laws of the State. The bonds may be issued in registered form or in such other form as determined by the Board. Provision may also be made for the replacement of bonds which become mutilated or are lost or destroyed. The bonds and notes are exempt from the provisions of §§ 8–206 and 8–208 of the State Finance and Procurement Article. The Service may sell its bonds and notes in the manner, either at public or at private sale, and for the price it determines. The bonds and notes may be issued by the Service without obtaining the consent of any unit of the State government, and without any other proceedings or the happening of any other conditions or things than those specifically required hereunder.

Except as may otherwise be expressly provided by the Service, every issue of its bonds or notes shall be general obligations of the Service payable out of any revenues or other money of the Service subject only to any agreements with the holders of particular bonds or notes pledging any particular receipts or revenues.

The Service may provide, by resolution adopted by a majority of the Board, for the issuance of its renewal notes or of refunding bonds for the purpose of refunding any bonds or notes then outstanding which were issued under the provisions of this subtitle, whether or not the bonds or notes to be refunded have matured, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of the bonds or notes, and, if deemed advisable by the Board, for either or both of the following combined additional purposes: (1) paying all or any part of the cost of constructing improvements or extensions to or enlargements of any existing project or projects and (2) paying all or any part of the cost of any additional project or projects. The issuance of refunding bonds or renewal notes and the details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the Service in respect thereto, are governed by the provisions of this subtitle relating to bonds or notes, insofar as these provisions may be applicable.

The Service, by resolution adopted by a majority of the Board, may: Issue, prior to the preparation of definitive bonds, interim receipts or temporary bonds exchangeable for definitive bonds when these bonds have been executed and are available for delivery; Issue and sell its bond anticipation notes, revenue anticipation notes, or grant anticipation notes the principal of and interest on these notes to be made payable to the bearer or registered holder out of the first proceeds of the sale of any bonds, revenues or grants, as the case may be, issued under this subtitle, or from any other available money of the Service, but the authorizing resolution may make provision for the issuance of bond anticipation notes in series as funds are required and for the renewal of these notes at maturity, with or without resale. The issuance of notes and the details thereof, the rights of the holders, and the rights, duties, and obligations of the Service in respect thereto, are governed by the provisions of this title relating to bonds, insofar as these provisions may be applicable. A grant anticipation note may be issued or sold only after receipt of written commitment of the federal or State government or agency making the grant; and Issue and sell its revenue bonds or notes for the purpose of borrowing money to lend to any person or municipality for the accomplishment by such person or municipality of a project or projects. The principal of and interest on the bonds or notes may be made payable out of: The revenues received by the Service from such person or municipality or otherwise received in connection with such project; Any property pledged or mortgaged as security for such bonds or notes; or Any other sources designated by the Service. The authorizing resolution may make provision for the issuance of such bonds or notes in series as funds are required. The issuance of bonds or notes and the details of the issuance, the rights of the holders of the bonds or notes, and the rights, duties, and obligations of the Service of the bonds and notes shall be governed by the provisions of this subtitle relating to bonds insofar as those provisions are applicable. The Service may make or approve such provisions in connection with the issuance of the bonds or notes authorized by this subsection, including the security for such bonds or notes, the priority of the bonds or notes with regard to such security (which priority may be senior, or subordinated to, or on a parity with, other obligations) as the Service may deem necessary or appropriate to effectuate the acquisition, construction, or provision of a project by any person or municipality. However, the Service does not have power to take any action in connection with the issuance of bonds or notes pursuant to this paragraph which would create any obligation on the part of any municipality without the consent of the municipality to the obligation.

Bonds and notes authorized to be issued under the provisions of this subtitle by resolution of the Board may be secured by a trust agreement by and between the Service and a corporate trustee, which may be any trust company, or bank having trust powers, within or without the State. The trust agreement, or the authorizing resolution, may pledge or assign all or any part of the revenues of the Service or of any project or other available funds of the Service or pledge, convey, or assign any one or more facilities or properties. Any trust agreement or resolution authorizing the issuance of bonds or notes may contain the provisions for the protection and enforcement of the rights and remedies of the bondholders and the trustee deemed reasonable and proper and may restrict the individual right of action by bondholders. In addition, the trust agreement may contain other provisions which the Board deems reasonable and proper for the security of the bondholders, including, without limitation, covenants to abandon, restrict, or prohibit the construction or operation of competing facilities and covenants pertaining to the issuance of additional parity bonds or notes upon conditions stated therein consistent with the requirements of this subtitle. All expenses incurred in carrying out the provisions of any trust agreement may be treated as a part of the cost of the operation of any project or projects in connection with which the bonds or notes have been issued. The proceeds of the sale of bonds or notes secured by a trust agreement shall be paid to the trustee under the trust agreement securing the bonds or notes and shall be disbursed in the manner and under the restrictions, if any, that may be provided in the trust agreement.

The Service may fix, revise, charge, and collect rentals, rates, fees or other charges for the use of or for the services or products furnished by any project or projects, including projects within a service district, contract with any person or municipality desiring the use of the services or products, or any part of any project or projects, and fix the terms, conditions, rentals, rates, fees, and charges therefor. The rentals and other rates, fees and charges designated as security for any bonds or notes issued under this subtitle shall be fixed and adjusted in respect of the aggregate thereof from the projects under the control of the Service as to provide funds sufficient with other revenues, if any, (1) to pay the cost of maintaining, repairing, and operating any project or projects financed in whole or in part by outstanding bonds or notes, to the extent the cost is not otherwise provided, (2) to pay the principal of and the interest on the bonds or notes as they become due and payable, (3) to create reserves for those purposes, and (4) to provide funds for paying the cost of renewals or replacements, the cost of acquiring or installing equipment, and the cost of enlarging, extending, reconstructing, or improving any project or projects. The rentals, rates, fees, and charges are not subject to supervision or regulation by any unit of the State government or any political subdivision, except as provided in § 3–128 of this subtitle. The rentals, rates, fees, and other charges and revenues, or any part thereof, whether derived from the project or projects in connection with which the bonds or notes of any issue have been issued or from other projects, designated as security for the bonds or notes by the authorizing resolution or in the trust agreement securing the bonds or notes, shall be set aside at the regular intervals provided in the resolution or trust agreement in a sinking fund pledged to, and charged with, the payment of (1) the interest on the bonds or notes as it falls due, (2) the principal of the bonds or notes as it falls due, (3) the necessary charges of the trustee and other agents appointed by the trust agreement, and (4) the redemption price or purchase price of bonds or notes retired by call or purchase as provided in the resolution or trust agreement. Any amounts set aside in the sinking fund which are not needed to provide for the payment of items (1), (2), (3), and (4) may be used for any other lawful purpose to the extent provided in the resolution or trust agreement. The pledge is valid and binding from the time it is made. The rentals, rates, fees, and other charges, revenues or other money pledged and thereafter received by the Service immediately shall be subject to the lien of the pledge without any physical delivery thereof or further act, and the lien of the pledge is valid and binding as against all parties having any claims of any kind in tort, contract, or otherwise against the Service, irrespective of whether the parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the Service, any public general or public local law to the contrary notwithstanding. The use and disposition of money to the credit of the sinking fund are subject to the provisions of the resolution authorizing the issuance of the bonds or notes or of the trust agreement.

All money received by the Service as proceeds from the sale of bonds or notes and all money received or by way of those rentals, rates, fees, or other charges or revenues, or portion thereof, from any project, or any continuation of projects and which are designated by any authorizing resolution or trust agreement as security for bonds or notes shall be deemed to be trust funds to be held and applied solely as provided by the provisions of this subtitle and in the resolution authorizing the issuance of bonds or notes or the trust agreement securing the bonds or notes.

Any holder of bonds or notes issued under this subtitle and the trustee, except to the extent the rights herein given may be restricted by the trust agreement, either at law or in equity, by suit, action, mandamus or other proceedings, may protect and enforce any and all rights under the laws of the State or granted hereunder, or in the resolution authorizing the issuance of the bonds or notes, or under the trust agreement, and may enforce and compel the performance of all duties required by this subtitle, or in the resolution authorizing the issuance of the bonds or notes, or by the trust agreement, to be performed by the Service, or by any officer thereof, including the fixing, charging, and collecting of rentals and other rates, fees, and charges for the use of the projects.

Bonds and notes issued under this subtitle are securities in which all public officers and public units of the State and its political subdivisions and all banks, trust companies, savings and loan associations, investment companies, and others carrying on a banking business, all insurance companies, insurance associations, and others carrying on an insurance business, all personal representatives, guardians, trustees, and other fiduciaries, and all other persons may legally and properly invest funds, including capital in their control or belonging to them. The bonds and notes are securities which may properly and legally be deposited with and received by any State or municipal officer or any unit or political subdivision of the State for any purpose for which the deposit of bonds or other obligations of the State is authorized by law.

Bonds or notes issued under the provisions of this subtitle shall not be deemed to constitute or create a debt or a pledge of the faith and credit of the State or of any political subdivision. Every bond or note shall contain on its face a statement to the effect that neither the Service, the State, nor any political subdivision thereof is obligated to pay it or the interest thereon except from revenues or other money of the Service available therefor and that neither the faith and credit nor the taxing power of the State or any political subdivision is pledged to the payment of the principal of or the interest on the bonds or notes. However, this subsection does not limit the ability of the State or a political subdivision to set, impose, or collect an assessment, rate, fee, or charge to pay to the Service the cost of a project, including the principal of and interest on a bond or note, under an agreement between the Service and the State or political subdivision. Notwithstanding any limitations or other provisions to the contrary of Division II, Title 9, Subtitle 2 or Subtitle 3, Title 10, or Title 11 of the Local Government Article, or of any charter or local law regulating the creation of public debts, a municipality may enter into contracts with the Service for the purpose of defraying the Service’s costs of acquiring or providing a solid waste disposal project, wastewater purification project, water supply project, or energy project, which costs may include debt service requirements of the Service relating to that project. These contracts shall not be deemed to constitute or create a debt of the municipality or a pledge of its faith or credit within the meaning of any of these limitations or other provisions. Such a solid waste disposal project, wastewater purification project, water supply project, or energy project may not be deemed to be a capital project of the municipality within the meaning of any of these limitations or other provisions, and a resolution, ordinance, or other official action authorizing such contracts is not subject to referendum or other procedure not applicable to all ordinances or resolutions enacted by the municipality. For the purposes of this subsection, the express powers contained and enumerated in Division II and Title 10 of the Local Government Article and in the Charter of the City of Baltimore are deemed to incorporate and include the power and authority contained in this subsection. A county or municipal corporation may limit its obligations under contracts with the Service to a specific source of funds including revenues of its publicly operated or publicly contracted solid waste collection or disposal system. The governing body of a county or municipal corporation may, by ordinance or resolution, impose reasonable rates and charges for publicly operated or publicly contracted solid waste collection, treatment, or disposal sufficient to defray expenses of its publicly operated or publicly contracted solid waste collection, treatment, or disposal system, including amounts due under a contract with the Service and the funding of reserves. The ordinance or resolution may establish a reasonable basis for setting the rates and charges, and a schedule of rates and charges, and may designate solid waste collection, treatment, or disposal service areas within the county or municipal corporation, provided the county or municipal corporation is operating its own collection, treatment, or disposal service or has contracted out those services. The ordinance or resolution may provide that the rates and charges are chargeable against all or part of the occupied lots or parcels of land in the county or municipal corporation or in service areas established by the county or municipal corporation and constitute a first lien on such property and may establish reasonable times and methods for collection of the rates or charges, which may be levied and collected and have the same priority and rights and bear the same interest and penalties and in every respect be treated the same as taxes of the county or municipal corporation. The county or municipal corporation may modify the amount of the rates and charges by a resolution of its governing body or by other action authorized by the ordinance or resolution imposing the rates and charges. Before setting or modifying the rates and charges, the county or municipal corporation shall give notice of the proposed rates or charges in at least one newspaper of general circulation in the county or municipal corporation and hold a public hearing on the necessity or advisability of the proposed rates or charges. The county or municipal corporation may enter into a rate covenant with the Service specifying the level of these rates and charges, the covenants described in § 3–104(m) of this subtitle, and other covenants of the county or municipal corporation to provide solid waste collection, treatment, or disposal service and ensure that sufficient revenues are available to provide for the payments due under the contract. The powers granted by this section are in addition to other powers of a county or municipal corporation granted under law and may not be restricted by any debt or tax rate limitation in any general law, local law, or charter provision. Rates and charges imposed under this section are not subject to the jurisdiction of any entity other than the Service or the contracting municipality. Any contract between the Service and a municipality shall be valid, binding, and enforceable against the municipality if it is approved by resolution of the governing body of the municipality. A county or municipal corporation may exercise the powers granted under this section notwithstanding any limitations or other provisions to the contrary of Division II, Title 9, Subtitle 2 or Subtitle 3, Title 10, or Title 11 of the Local Government Article or of any charter or local law.

The exercise of the powers granted by this subtitle is for the benefit of the people of the State for the improvement of their health and living conditions. Since the activities of the Service and the operation and maintenance of its projects constitute the performance of essential governmental functions, the Service is exempt from any payment of or liability for any and all taxes, whether federal, State, or local, now or hereafter levied or imposed, and any assessments or other governmental charges. The bonds and notes of the Service issued pursuant to the authority of this subtitle, their transfer, the interest payable thereon, and any income derived therefrom, including any profit realized in the sale or exchange thereof, at all times shall be exempt from taxation of every kind and nature whatsoever by the State, or by any of its political subdivisions, municipal corporations, or public units of any kind.

The Service may not be required to give any bond as security for costs, supersedeas, or any other security in any suit or action brought by or against it, or in proceedings to which it may be a party in any court in the State. The Service may appeal to a court having jurisdiction without bonds, supersedeas, or security of any kind. No builder’s, materialman’s, contractor’s, laborer’s, or mechanic’s liens of any kind or character may ever attach to or become a lien upon any property, real or personal, owned or controlled by the Service. No assignment of wages may be binding upon or recognized by the Service.

Any lien created in favor of the Service or a municipality pursuant to this subtitle is effective against the person on whose property the lien exists and the owner of record. However, the lien is not effective against any third party unless written notice of the lien is recorded and indexed in a permanent record maintained in the office of the clerk of the circuit court in each county in which the property subject to the lien or any part of it is located. The notice shall contain the name and address of the owner of record against whose property the lien exists, the name and address of the Service or municipality, the amount of the lien, a description or reference to the property subject to the lien, and the date the lien was created. On presentation of a release of any lien of the Service or municipality, the clerk of the proper court in which the lien is recorded and indexed shall record and index the release and shall note in the lien docket the date the release is filed and the fact that the lien is released. The clerk of the proper court shall provide a suitable well-bound book, at the expense of the county or city, to be called the environmental service lien docket, in which the notices of liens shall be recorded and indexed. The clerk may not collect more than $2 for recording and indexing each lien or release of any lien.

The Service may provide for the creation, continuation, and administration of whatever funds may be required. Money in these funds and other money of the Service shall be deposited, as directed by the Service, in any State or national bank, or federally insured savings and loan associations having a total paid–in capital of at least $1,000,000 or in any financial institution in which the State Treasurer is authorized to deposit State funds. The trust department of any State or national bank or savings and loan association may be designated as a depository to receive any securities acquired or owned by the Service. The restriction with respect to paid–in capital may be waived for any qualifying bank or savings and loan association which agrees to pledge securities of the State or of the United States to protect the funds and securities of the Service in amounts and under arrangements acceptable to the Service. Any money of the Service, in its discretion and unless otherwise provided in any trust agreement, other agreement, or covenant made by the Service for the benefit of the holders of any of its obligations with respect to funds held under the trust or other agreement may be invested in: Bonds or other obligations of, or guaranteed as to principal and interest by, the United States or the State or its political subdivisions or units; or Any other obligation or security in which the State Treasurer may invest under § 6–222 of the State Finance and Procurement Article. The Service shall make provision for a system of financial accounting, controls, audits, and reports. All accounting systems and records, auditing procedures and standards, and financial reporting shall conform to generally accepted principles of governmental accounting. The Service shall adopt the fiscal year of July 1 to June 30, designate the necessary funds for complete accountability, and specify the basis of accounting for each fund. On or before November 15 each year, an audit shall be made of the financial books, records, and accounts of the Service. The audit shall be made by independent certified public accountants, selected by the Service and licensed to practice in the State. The accountants: May not have a personal interest either directly or indirectly in the fiscal affairs of the Service; and Shall be experienced and qualified in the accounting and auditing of public bodies. The report of audit shall be prepared in accordance with generally accepted auditing principles and point out any irregularities found to exist. The accountants shall report the results of their examination, including their unqualified opinion on the presentation of the financial position of the various funds and the results of the Service’s financial operations. If the accountants are unable to express an unqualified opinion, they shall state and explain in detail the reasons for their qualifications, disclaimer, or opinion including recommendations necessary to make possible future unqualified opinions. The Board shall review an audit prepared under paragraph (1) of this subsection at a meeting of the Board and make any changes or recommendations that the Board considers appropriate based on the audit. The Service shall: Provide to the Department of Budget and Management: A copy of an audit prepared under paragraph (1) of this subsection; and Any changes or recommendations of the Board based on the audit; and Post a copy of an audit prepared under paragraph (1) of this subsection on the Service’s website, including a link on the homepage of the website to a copy of the most recent audit. The books, records, and accounts of the Service are subject to audit by the State, including the Legislative Auditor. Any officer or employee who refuses to give the required assistance and information to the accountants selected by the Service or by the State, or who refuses to submit to them for examination the books, documents, records, files, accounts, papers, things, or property required for the audit, in the discretion of the Service, may be required to forfeit his office or employment. Any money received by the Service from State agencies for goods or services provided by the Service in accordance with agreements with those agencies shall be deposited and credited to the funds created under this subtitle. On or before November 15 each year, the Service shall make a report to the Governor and, subject to § 2–1257 of the State Government Article, to the General Assembly of its activities for the preceding fiscal year. Each such report shall include the completed financial audit required under subsection (d) of this section and a summary of energy activities undertaken by the Service during the preceding fiscal year.

Except as otherwise provided by this subtitle, the Service may adopt, formulate, revise, and enforce rules and regulations necessary for the regulation of its internal affairs and for the use and operation of its projects, and of any other laws the administration of which is vested in the Service. A rule or regulation concerning the use or operation of a project may not conflict with any rule, regulation, permit, or hauler certificate of the Department of the Environment. The Service may limit or regulate water supply or liquid waste service, refuse collection, disposal service, and storm and surface water drainage service, in any area or to any premises served by Service projects, as the exigencies of the occasion and the protection of its systems require. The Service may adopt lawful and reasonable regulations it considers necessary for the public’s health and safety, comfort, and convenience in the construction, operation, maintenance, expansion, relocation, replacement, renovation, and repair of its water supply, wastewater purification, solid waste disposal, and energy projects. Rules and regulations shall be approved by the Board and adopted under the provisions of the Administrative Procedure Act, except when necessary for the immediate preservation of the public health and safety and except for emergency provisions required to protect Service projects. Any regulation adopted by the Service under this section has the effect of law.

If the Service and a municipality or person fail to reach agreement on rates, fees, or other charges to be exacted by the Service for a water supply or wastewater purification project, the Public Service Commission, on the petition of either party to the disagreement, shall assume jurisdiction for the purpose of arbitrating the disagreement. Its determination shall be final and binding on all parties concerned, subject to the right of any party to appeal the determination to the circuit court of any county within which the municipality or person is located, resides, or carries on business. In any appeal the decision of the Commission is prima facie correct and shall be affirmed unless clearly shown to be (1) in violation of constitutional provisions, or (2) made on unlawful procedure, or (3) arbitrary or capricious, or (4) affected by other error of law. It is the intention of this subtitle that judicial review in all instances includes the right to appeal to the Appellate Court of Maryland from the decision of the lower court. The provisions of this section and the jurisdiction of the Public Service Commission shall not apply to any rates, fees, or charges agreed to by contract between the Service and a municipality or person for a water supply or wastewater purification project. The Service may not be deemed to be a public service company within the meaning of the Public Utilities Article, and, except as provided in this section and in § 3–102(b) of this subtitle, the jurisdiction and powers of the Public Service Commission do not extend to the Service.

Any person who violates any provision of this subtitle or of any rule or regulation adopted by the Service is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 for each violation. A separate offense exists for each day a violation occurs.

This subtitle shall be known as the “Maryland Environmental Service Act”.