Title 3. Environmental Programs — Subtitle 9. Northeast Maryland Waste Disposal Authority

The Authority shall consist of one member from each of the participating counties and the director of the Maryland Environmental Service, ex officio. Each member from a participating county shall be appointed by the Governor from a list of at least three persons, which list has been submitted to the Governor by such participating county. Each such list shall be submitted to the Governor after approval by the chief executive officer of the county submitting such list. Members from a participating county shall serve terms of 4 years and shall continue in office until their successors have been appointed and qualified. A member from a participating county shall be eligible for reappointment. Each member of the Authority, before entering upon his or her duties, shall take an oath to administer the duties of the office faithfully and impartially, and such oath shall be filed with the Secretary of State. The members of the Authority may be removed by the Governor for good cause or may be removed at the will of the Governor at any time in the event the Governor has previously received a resolution of that county which nominated such a member for appointment requesting that such member be removed.

The Authority shall appoint, subject to the approval of the Governor, an executive director. The executive director may not be a member of the Authority. The Authority may also appoint, subject to the approval of the Governor, a general counsel, either on a full–time or a part–time basis as the Authority may determine, or it may otherwise provide for the provision of necessary legal services to the Authority. The general counsel shall not be a member of the Authority. Both the executive director and the general counsel shall serve at the pleasure of the Authority, and shall receive such compensation as may be determined by the Authority.

The executive director shall keep a record of the proceedings of the Authority and shall be custodian of all books, documents, and papers filed with the Authority and of the minute book or journal of the Authority and of its official seal. The executive director may cause copies to be made of all minutes and other records and documents of the Authority and may give certificates under the official seal of the Authority to the effect that such copies are true copies, and all persons dealing with the Authority may rely upon such certificates. The records and documents of the Authority shall be considered public records subject to reasonable inspection. The executive director shall, subject to the supervision and direction of the Authority, be the chief administrative officer of the Authority.

The general counsel, if one is appointed, shall be the legal advisor to the Authority. He shall, when directed by the Authority, represent the Authority in judicial or other proceedings.

A majority of the members of the Authority shall constitute a quorum and the affirmative vote of a majority of the members present at a meeting of the Authority having a quorum present shall be necessary for any action taken by the Authority. The director of the Maryland Environmental Service is a voting member of the Authority. No vacancy in the membership of the Authority shall impair the right of a quorum to exercise all the rights and perform all the duties of the Authority as aforesaid. Any action taken by the Authority under the provisions of this subtitle may be authorized by resolution at any regular or special meeting. Each such resolution, other than resolutions promulgating rules and regulations, shall take effect immediately and need not be published or posted. Rules and regulations shall be promulgated 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 projects of the Authority.

Each member of the Authority, the executive director and such employees as may be designated by the Authority, shall, upon entering the performance of their duties, 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 members of the Authority shall receive no compensation for the performance of their duties hereunder, but each such member shall be paid his necessary expenses incurred while engaged in the performance of such duties.

The participating counties may grant, loan, or otherwise transfer to the Authority, and the Authority may accept, from time to time such money, property or other assets as may be necessary or desirable to enable the Authority to initiate its operations or those of any project or to carry out any of its corporate purposes.

The staff of the Authority shall consist of such employees as the Authority may determine to be necessary to carry out the duties of the Authority. The executive director shall appoint and remove the staff of the Authority in accordance with the provisions and restrictions of a “merit system” to be developed by the Authority.

If the Authority determines that the provision of pension benefits for its employees cannot be effected practicably by means of the State Retirement System, the Authority shall be empowered to provide a pension benefit for employees upon their retirement on account of age, service, or disability and shall have the right to contract with an insurance company or other appropriate body to provide such pension benefits or by resolution to establish a retirement system to be operated on an actuarial basis under the applicable laws of the State of Maryland. Any employee of the State of Maryland or any subdivision who is employed by the Authority shall have the right to transfer to the pension system of the Authority and receive credit in the Authority’s system for the service in the system from which such employee transferred contingent upon a transfer of the pension reserve applicable to such employee (employee and employer share) as certified by the actuary of the transferee system. With respect to employees initially transferred from any subdivision to the Authority, such employee shall elect within 6 months of said date of transfer whether to transfer his pension membership.

The Authority shall by regulation establish the boundary of the Northeast Maryland waste disposal region. The boundary of the waste disposal region may include all or any part of the area within the boundaries of the participating counties. The director of the Maryland Environmental Service shall designate the Northeast Maryland waste disposal region as a solid waste disposal service region as provided in § 3–106 of this title.

Upon adoption by the Authority of a five–year plan providing for solid waste disposal projects and approval of such plan by the affected county or counties or the General Assembly, as the case may be, service districts shall be established within the Northeast Maryland waste disposal region in the manner and following the schedule set forth in the five–year plan providing for solid waste disposal projects. Within each service district in the Northeast Maryland waste disposal region, the Authority, and not the Maryland Environmental Service, is responsible for the disposal of solid wastes (including any wastewater treatment residue) as set forth in the five–year plan providing for solid waste disposal projects. Within the service district, no subdivision or person may dispose of solid wastes except through projects of the Authority or of a subdivision or person designated by the five–year plan or under reasonable conditions the Authority stipulates; provided however, that it is not intended by this section that the Authority, in the absence of an agreement to do so, be required to assume responsibility over any wastewater treatment activity or project or over any existing solid waste activity or project of any person or subdivision. Nothing contained in this subtitle shall affect the power of the Secretary of the Environment, as set forth in § 3–109 of this title, to direct the Maryland Environmental Service to undertake any of the actions authorized therein.

Notwithstanding any other provision of this subtitle, all general funds appropriated to the Maryland Environmental Service to prepare the five–year plan providing for solid waste disposal projects in the participating counties as provided in § 3–106 of this title or to provide for its adoption, approval and implementation shall be transferred to the Authority for application by the Authority to such purposes.

As used in this subtitle, the words and terms listed in this section have the meaning given, unless the context clearly indicates another or different meaning.

“Bonds” means all bonds, bond anticipation notes, revenue anticipation notes, grant anticipation notes, or other evidences of indebtedness of the Authority, whether general or limited obligations of the Authority.

“Cost” shall include the purchase price of any project or the cost of acquiring all or any portion of the right, title, or interest of a project and the amount to be paid to discharge all obligations necessary or desirable to vest title to the project or any part thereof in the Authority or other owner; the cost of any reconstruction, extension, enlargement, alteration, repair or improvement; the cost of all lands, properties, rights, easements, franchises, and permits; the cost of all labor, machinery, and equipment; financing charges; interest prior to and during construction and if, deemed desirable by the Authority, for a limited period after the completion of construction; reserves for principal and interest and for extensions, enlargements, additions and improvements; 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, repair or construction; administrative expenses, and other expenses as necessary or incident to the financings herein authorized, and to the acquisition, operation, maintenance, improvement, construction of a project and the placing of the same in operation by the Authority, including reasonable provision for working capital. Any obligation or expense incurred prior to the issuance of bonds under the provisions of this subtitle in connection with the foregoing items of cost may be regarded as a part of such cost.

The word “county” includes the Mayor and City Council of Baltimore unless otherwise indicated.

“Person” means any natural person, corporation, firm, partnership, cooperative, or other entity.

“Resolution of participation” means the resolution filed by a county with the Secretary of State and the Department of Legislative Services in order to evidence the consent of the county to participate in the activities of the Authority in accordance with the provisions of this subtitle.

“Revenues” means, but is not necessarily limited to, all money received by the Authority from or in connection with any project, including (without limitation) grants, rentals, rates, fees, charges for the use of the services furnished or available and all other income inuring to the Authority; provided that the Authority, from time to time, may further define or limit the term “revenues” as applied to a particular project, financing, or other matter.

“Subdivision” means any county, municipal corporation, sanitary district, State or local agency, or other public body or agency created or established by or pursuant to State or local law, ordinance, or resolution.

“Wastes” means all waste materials, whether solid, liquid or gas, including but not limited to garbage, refuse, and other discarded materials, waste materials resulting from industrial, commercial and agricultural operations and from community activities, rubbish, ashes, incinerator residue, wastewater treatment residue, street cleanings, dead animals, demolition and construction debris, discarded household appliances, automobile bodies, offal and paunch manure.

Except as provided in § 3–907.1 of this subtitle, the Authority is granted and has and may exercise all powers necessary for carrying out the purposes of this subtitle, including but not limited to, the following rights and powers:

Anything in this subtitle to the contrary notwithstanding, the Authority does not have any power to acquire, construct, operate, finance, or otherwise provide any project located outside the boundaries of the participating counties and within the State of Maryland unless:

Except as provided in § 3–907.1 of this subtitle, the Authority is hereby authorized and empowered, by resolution, to issue bonds for the purpose of financing the cost of one or more projects or for any other corporate purpose. Except as may otherwise be expressly provided by the Authority, every issue of its bonds shall be general obligations of the Authority payable from any revenues or money of the Authority available therefor and not otherwise pledged, subject only to any agreements with holders of particular bonds pledging any particular revenues or money and to any agreements with any persons or subdivisions. The Authority may issue its bonds without obtaining the consent of any board, agency, department or unit of the State, and without any other proceedings or the happening of any conditions or things other than those specifically required hereunder. The Authority and the Maryland Environmental Service may enter into agreements providing for (i) the financing by the issuance of bonds of the Maryland Environmental Service of projects provided for any subdivision by the Authority or (ii) the financing by the issuance of bonds of the Authority of projects provided for any subdivision by the Maryland Environmental Service.

The Authority shall have absolute discretion to determine with respect to the bonds of any issue:

Beginning June 1, 2023, the Authority may not issue bonds.

Subsection (a) of this section does not impair the Authority’s powers and authority regarding:

In case any officer whose signature or a facsimile of whose signature appears on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery.

Notwithstanding any other provisions of this subtitle or any recitals in any bonds issued hereunder, all such bonds shall be deemed to be negotiable instruments under the laws of this State.

The bonds may be issued in coupon or in registered form or both, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, for the reconversion into coupon bonds of any bonds registered as to both principal and interest, and for the interchange of coupon and registered bonds. Provision may also be made for the replacement of bonds which become mutilated or are stolen, lost or destroyed.

The bonds shall be exempt from the provisions of §§ 19–205 and 19–206 of the Local Government Article and §§ 8–206 and 8–208 of the State Finance and Procurement Article, and the Authority may sell such bonds in such manner, either at public or at private sale, and for such price as it may determine.

The Authority is hereby authorized to provide for the issuance of its bonds for the purpose of refunding any bonds of the Authority then outstanding, including the payment of any redemption premium thereon and any interest accrued or to accrue to the earliest or any subsequent date of redemption, purchase or maturity of such bonds, and, if deemed advisable by the Authority, for the additional purpose of paying all or any part of the cost of a project or any portion thereof. Refunding bonds may be issued in the discretion of the Authority for any corporate purpose, including (without limitation) the public purposes of realizing savings in the effective costs of debt service, directly or through a debt restructuring, or alleviating an impending or actual default or relieving the Authority of contractual agreements which, in the opinion of the Authority, have become unreasonably onerous or impracticable or impossible to perform. Refunding bonds (in one or more series) may be issued in an amount in excess of that of the bonds to be refunded. Without limiting the extent or nature of any sources of payment provided by the Authority, refunding bonds may be made payable from escrowed bond proceeds and from interest, income, and profits, if any, on investments. Such sources may be so applied in addition to other lawful uses and shall constitute revenues of a project under this subtitle.

The proceeds of any such bonds issued for the purpose of refunding outstanding bonds may, in the discretion of the Authority, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds either on their earliest or any subsequent redemption date, and may, pending such application, be placed in escrow to be applied to such purchase or retirement at maturity or redemption on such date as may be determined by the Authority.

Any such escrowed proceeds, pending such use, may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit or time deposits secured by obligations of or guaranteed by the United States of America, maturing at such time or times as shall be appropriate to ensure the prompt payment, as to principal, interest, and redemption premium, if any, of the outstanding bonds to be so refunded. The interest, income and profits, if any, earned or realized on any such investment may also be applied to the payment of the outstanding bonds to be so refunded. After the terms of the escrow have been fully satisfied and carried out, any balance of such proceeds and interest, income, and profits, if any, earned or realized on the investments thereof may be returned to the Authority for use by it in any lawful manner.

The portion of the proceeds of any such bonds issued for the additional purpose of paying all or any part of the cost of a project may be invested and reinvested in obligations of or guaranteed by the United States of America, or in certificates of deposit or time deposits secured by obligations of or guaranteed by the United States of America, maturing not later than the time or times when such proceeds will be needed for the purpose of paying all or any part of such cost. The interest, income and profits, if any, earned or realized on such investment may be applied to the payment of all or any part of such cost or may be used by the Authority in any lawful manner.

To issue, prior to the preparation of definitive bonds, interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds have been executed and are available for delivery.

To issue and sell its bond anticipation notes, the principal of and interest on such notes to be made payable to the bearer or registered holder thereof out of the first proceeds of sale of bonds therein designated and to issue and to sell its revenue anticipation notes or grant anticipation notes, the principal of and interest on such notes to be made payable to the bearer or registered holder thereof out of the first receipts of the revenues or grants (as the case may be) therein designated. The authorizing resolution may make provision for the issuance of such notes in series as funds are required and for the renewal of such notes at maturity with or without resale. The issuance of such notes and the details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the Authority in respect thereto, shall be governed by the provisions of this subtitle relating to bonds, insofar as the same may be applicable.

To issue and sell its revenue bonds in the nature of industrial development bonds, whether the bonds be pollution control revenue bonds, solid waste disposal revenue bonds or other types of industrial development revenue bonds, for the purpose of borrowing money to lend to any person or subdivision for the accomplishment by such person or subdivision of a project or projects. The principal of and interest on such bonds may be made payable to the bearer or registered holder thereof out of:

Bonds may be secured by a trust agreement by and between the Authority and a corporate trustee, which may be any trust company or bank having trust powers, within or without the State. Such trust agreement may pledge or assign all or any part of the revenues of the Authority or of any project, and may mortgage or grant a lien on or security interest in any project or any part thereof. Any such trust agreement or resolution authorizing the issuance of bonds may contain such provisions for the protection and enforcement of the rights and remedies of the bondholders as may be deemed reasonable and proper, including covenants setting forth the duties of the Authority in relation to the acquisition or construction of any project, the extension, enlargement, improvement, maintenance, operation, repair and insurance of any project and the custody, safeguarding and application of money and may contain provisions for the employment of consulting engineers and other experts in connection with the construction or operation of any project. It shall be lawful for any bank or trust company incorporated under the laws of this State which may act as depository of the proceeds of the bonds or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the Authority. Such trust agreement may set forth the rights and remedies of the bondholders and of the trustee and may restrict the individual right of action by bondholders. In addition to the foregoing, such trust agreement may contain such other provisions as the Authority may deem 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 upon conditions stated therein consistent with the requirements of this subtitle. All expenses incurred in carrying out the provisions of any such trust agreement may be treated as a part of the cost of any project or projects in connection with which such bonds shall have been issued.

The proceeds of the sale of bonds shall be paid to the trustee under any trust agreement securing such bonds and shall be disbursed in such manner and under such restrictions, if any, as may be provided in such trust agreement.

The rates, rentals, fees, and charges of the Authority in connection with each project shall be so fixed, revised, and collected as to provide funds, with other funds available for such purposes, sufficient at all times:

In cases where the character of the waste from any source is such that it imposes an unreasonable burden upon any project, an additional charge may be made therefor, or the Authority may, if it deems advisable, require that such waste be treated or processed in such manner as shall be specified by the Authority prior to the deposit of such waste at the project. Such rentals and other rates, fees, and charges shall not be subject to supervision or regulation by any department, division, commission, board, bureau, or agency of the State or any political subdivision thereof.

The revenues, or any part thereof (whether derived from the project or projects in connection with which the bonds of any issue shall have been issued or from other projects or sources), designated as security for such bonds by the authorizing resolution or in the trust agreement securing the bonds shall be set aside at such regular intervals as may be provided in such resolution or trust agreement in a special fund which is hereby pledged to, and charged with, the payment of:

Without in any way limiting or restricting the effect or application thereof, the provisions of this subtitle are intended and shall be construed to authorize the Authority to finance any project or projects or any combination of projects by any combination of issues or series of bonds which shall be secured by the pledge of the net or gross (or combination thereof) revenues from any project or projects or combination of projects, designated by a resolution authorizing the issuance of such bonds or by any trust agreement securing such bonds.

Any net earnings of the Authority (beyond that necessary for the retirement of bonds or to implement the public purposes or programs of the Authority) shall not inure to the benefit of any person, other than the State of Maryland for use to accomplish the purposes of this subtitle.

Except as otherwise provided by this subtitle, the Authority is hereby authorized to adopt, formulate, and revise from time to time, 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 Authority; provided, however, that no such rule or regulation concerning the use or operation of a project shall be in conflict with any rule or regulation of the Department of the Environment. The Authority may limit or regulate waste disposal service on a temporary basis in any area or to any premises served by Authority projects, as the exigencies of the occasion and the protection of its systems require. The Authority shall make such regulations consistent with law as it may deem necessary for the public safety, health, comfort or convenience, in the construction, operation, maintenance, expansion, relocation, replacement, renovation, and repair of its projects.

Notwithstanding any other provision of law granting to the State or to any of its agencies or instrumentalities an exemption from charges and/or fees, the State or any of its agencies or instrumentalities shall pay to the Authority any contractual obligation, or benefit or connection charges imposed thereon, for services rendered.

Nothing in this subtitle shall be construed to alter, change, modify, or restrict the zoning or land use planning authority of any subdivision, municipality, or public instrumentality.

The Authority shall not be deemed to be a public service company within the meaning of the Public Utilities Article, and the jurisdiction and powers of the Public Service Commission shall not extend to the Authority.

Unless otherwise expressly prohibited by any contractual agreement, a subdivision may enter into a contract with the Maryland Environmental Service relating to the provision by the Maryland Environmental Service of any project.

Within the first ninety days of each fiscal year, the Authority shall make a report to the Governor and to the chief executive officer and the legislative body of each participating county of its activities for the preceding fiscal year. Each such report shall set forth the complete operating and financial statement covering its operations during such year.

The Authority 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 Authority 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. As soon as practical after the closing of the fiscal year, an audit shall be made of the financial books, records, and accounts of the Authority. The audit shall be made by independent certified public accountants, selected by the Authority 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 Authority. They 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 Authority’s financial operations. If they 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 books, records, and accounts of the Authority are subject to audit by the State. Any officer or employee who refuses to give the required assistance and information to the accountants selected by the Authority 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 Authority, may be required to forfeit his or her office or employment.

To convey title to such project or projects to such person or subdivision, free and clear of all liens and encumbrances, all to the extent that title to such project or projects shall not, at the time, then be vested in such person or subdivision; and

To release securities held as collateral by a trustee or trustees pursuant to the trust agreement to such person or subdivision, which had, pursuant to the trust agreement, deposited and turned over such securities to a trustee or trustees in order to assure the full payment and retirement of said bonds, free and clear of all liens and encumbrances, all to the extent that title to such securities shall not, at the time, then be vested in such person or subdivision.