There is a Local Division in the Department. The Department may have and provide the employees, buildings, equipment, facilities, and other operating materials for the Local Division as provided in the State budget. The employees in the Local Division are in addition to the regular number of employees in the Department.

The local governing body of a county and the Secretary may enter into an agreement for the Department to act as and take over all or some of the functions of a local police force for the county or a municipal corporation in the county. The local governing body of a county may enter into an agreement with a municipal corporation in the county for the participation of the municipal corporation in an agreement entered into under paragraph (1) of this subsection. In Charles County and St. Mary’s County, a municipal corporation also may enter into a separate agreement with the Department. In accordance with an agreement entered into under subsection (a) of this section, the Department within the county shall: enforce the public local laws of the county or municipal corporation; perform related police services; and perform the Department’s other and regular duties in the county. For purposes of paragraph (1) of this subsection, the Department shall provide the employees, buildings, and facilities that are required by agreement or, if not so required, that the Department considers reasonable and proper to achieve the objectives of the agreement. Each agreement entered into under subsection (a) of this section shall provide: that the Secretary shall determine the reasonable and proper cost of the Local Division for and within the particular county or municipal corporation; that the county or municipal corporation shall reimburse the Department the entire amount of the cost of the Local Division in the county or municipal corporation; and for the time and manner of reimbursements by the county or municipal corporation to the Department for the cost of the Local Division. Each agreement entered into under subsection (a) of this section requires the prior approval of the Attorney General as to legal sufficiency. Financial arrangements in each agreement entered into under subsection (a) of this section require the prior approval of the Secretary of Budget and Management.

If an agreement entered into under § 2-602 of this subtitle is terminated, the value of motor vehicles, radios, and light bars paid for by a county or municipal corporation under the agreement shall be depreciated in accordance with subsection (b) of this section. The value of motor vehicles, radios, and light bars shall be depreciated over a 5-year period beginning on the date the equipment was put in service as follows: after 1 year, the equipment shall be valued at 80% of its initial cost; after 2 years, the equipment shall be valued at 60% of its initial cost; after 3 years, the equipment shall be valued at 40% of its initial cost; after 4 years, the equipment shall be valued at 20% of its initial cost; and after 5 years, the equipment shall be considered to have no remaining value for purposes of this section. The Department shall reimburse the county or municipal corporation for the depreciated value of the motor vehicles, radios, and light bars.

Subject to subsection (b) of this section, if eight or more police employees are assigned to a county or municipal corporation in accordance with an agreement entered into under § 2-602 of this subtitle: the county or municipal corporation shall give the Department at least 5 years’ notice whenever the county or municipal corporation decides to terminate the services of police employees provided under the agreement; and the number of police employees assigned to the county or municipal corporation in accordance with the agreement shall be phased out over 5 years. The Department and county or municipal corporation may modify the manner in which the services of police employees are terminated in an agreement entered into under § 2-602 of this subtitle.