Maryland 2025 Regular Session

Maryland House Bill HB561 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0561
6	6
7	7	HOUSE BILL 561
8	8	B3 5lr2891
9	9	CF 5lr2893
10	10	By: St. Mary’s County Delegation
11	11	Introduced and read first time: January 23, 2025
12	12	Assigned to: Appropriations
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	St. Mary’s County – Public Facilities Bond 2
19	19
20	20	FOR the purpose of authorizing and empowering the County Commissioners of St. Mary’s 3
21	21	County, from time to time, to borrow not more than $71,000,000 in order to finance 4
22	22	the construction, improvement, or development of certain public facilities in St. 5
23	23	Mary’s County, as herein defined, and to effect such borrowing by the issuance and 6
24	24	sale at public or private sale of its general obligation bonds in like par amount; 7
25	25	empowering the County to fix and determine, by resolution, the form, tenor, interest 8
26	26	rate or rates or method of determining the same, terms, conditions, maturities, and 9
27	27	all other details incident to the issuance and sale of the bonds; empowering the 10
28	28	County to issue refunding bonds for the purchase or redemption of bonds in advance 11
29	29	of maturity; empowering and directing the County to levy, impose, and collect, 12
30	30	annually, ad valorem taxes in rate and amount sufficient to provide funds for the 13
31	31	payment of the maturing principal of and interest on the bonds; exempting the bonds 14
32	32	and refunding bonds and the interest thereon and any income derived therefrom 15
33	33	from all State, county, municipal, and other taxation in the State of Maryland; 16
34	34	providing that nothing in this Act shall prevent the County from authorizing the 17
35	35	issuance and sale of bonds the interest on which is not excludable from gross income 18
36	36	for federal income tax purposes; and generally relating to the issuance and sale of 19
37	37	such bonds. 20
38	38
39	39	SECTION 1. BE IT ENACTED BY THE GENERA L ASSEMBLY OF MARYLAND, 21
40	40	That, as used herein, the term “County” means the body politic and corporate of the State 22
41	41	of Maryland known as the County Commissioners of St. Mary’s County, and the term 23
42	42	“construction, improvement, or development of public facilities” means the acquisition, 24
43	43	alteration, construction, reconstruction, enlargement, equipping, expansion, extension, 25
44	44	improvement, rehabilitation, renovation, upgrading, and repair of public buildings and 26
45	45	facilities and public works projects, including, but not limited to, public works projects such 27
46	46	as highways, roads, bridges and storm drains, public school buildings and facilities, boating 28
47	47	facilities, shore erosion and other marine property, landfills, and recycling facilities, public 29
48	48	operational buildings and facilities such as buildings and facilities for County 30 2 HOUSE BILL 561
49	49
50	50
51	51	administrative use, capital improvements to the Wicomico Shores Taxing District, County 1
52	52	athletic facilities, the community college, community swimming pools, public safety, health 2
53	53	and social services, libraries, commuter air service facilities, refuse disposal buildings and 3
54	54	facilities, and parks and recreation buildings and facilities, together with the costs of 4
55	55	acquiring land or interests in land as well as any related architectural, financial, legal, 5
56	56	planning, or engineering services. 6
57	57
58	58	SECTION 2. AND BE IT FURTHER ENACTED, That the County is hereby 7
59	59	authorized to finance any part or all of the costs of the public facilities described in Section 8
60	60	1 of this Act, and to borrow money and incur indebtedness for that purpose, at one time or 9
61	61	from time to time, in an amount not exceeding, in the aggregate, $71,000,000, and to 10
62	62	evidence such borrowing by the issuance and sale upon its full faith and credit of general 11
63	63	obligation bonds in like par amount, which may be issued at one time or from time to time, 12
64	64	in one or more groups or series, as the County may determine. 13
65	65
66	66	SECTION 3. AND BE IT FURTHER ENACTED, That the bonds shall be issued in 14
67	67	accordance with a resolution of the County, which shall describe generally the construction, 15
68	68	improvement, or development of public facilities for which the proceeds of the bond sale are 16
69	69	intended and the amount needed for those purposes. The County shall have and is hereby 17
70	70	granted full and complete authority and discretion in the resolution to fix and determine 18
71	71	with respect to the bonds of any issue: the designation, date of issue, denomination or 19
72	72	denominations, form or forms, and tenor of the bonds which, without limitation, may be 20
73	73	issued in registered form within the meaning of § 19–204 of the Local Government Article 21
74	74	of the Annotated Code of Maryland, as amended; the rate or rates of interest payable 22
75	75	thereon, or the method of determining the same, which may include a variable rate; the 23
76	76	date or dates and amount or amounts of maturity, which need not be in equal par amounts 24
77	77	or in consecutive annual installments, provided only that no bond of any issue shall mature 25
78	78	later than 30 years from the date of its issue; the manner of selling the bonds, which may 26
79	79	be at either public or private sale, for such price or prices as may be determined to be in 27
80	80	the best interests of St. Mary’s County; the manner of executing and sealing the bonds, 28
81	81	which may be by facsimile; the terms and conditions, if any, under which bonds may be 29
82	82	tendered for payment or purchase prior to their stated maturity; the terms or conditions, if 30
83	83	any, under which bonds may or shall be redeemed prior to their stated maturity; the place 31
84	84	or places of payment of the principal of and the interest on the bonds, which may be at any 32
85	85	bank or trust company within or without the State of Maryland; covenants relating to 33
86	86	compliance with applicable requirements of federal income tax law, including (without 34
87	87	limitation) covenants regarding the payment of rebate or penalties in lieu of rebate; 35
88	88	covenants relating to compliance with applicable requirements of federal or state securities 36
89	89	laws; and generally all matters incident to the terms, conditions, issuance, sale, and 37
90	90	delivery thereof. 38
91	91
92	92	The bonds may be made redeemable before maturity, at the option of the County, at 39
93	93	such price or prices and under such terms and conditions as may be fixed by the County 40
94	94	prior to the issuance of the bonds, either in the resolution or in a bond order pursuant to 41
95	95	the bond resolution. The bonds may be issued in registered form and provision may be made 42
96	96	for the registration of the principal only. In case any officer whose signature appears on 43
97	97	any bond ceases to be such officer before the delivery thereof, such signature shall 44 HOUSE BILL 561 3
98	98
99	99
100	100	nevertheless be valid and sufficient for all purposes as if he had remained in office until 1
101	101	such delivery. The bonds and the issuance and sale thereof shall be exempt from the 2
102	102	provisions of §§ 19–205 and 19–206 of the Local Government Article of the Annotated Code 3
103	103	of Maryland, as amended. 4
104	104
105	105	The County may enter into agreements with agents, banks, fiduciaries, insurers, or 5
106	106	others for the purpose of enhancing the marketability of any security for the bonds and for 6
107	107	the purpose of securing any tender option that may be granted to holders of the bonds, all 7
108	108	as may be determined and presented in the aforesaid resolution, which may (but need not) 8
109	109	state as security for the performance by the County of any monetary obligations under such 9
110	110	agreements the same security given by the County to bondholders for the performance by 10
111	111	the County of its monetary obligations under the bonds. 11
112	112
113	113	If the County determines in the resolution to offer any of the bonds by solicitation of 12
114	114	competitive bids at public sale, the resolution shall fix the terms and conditions of the public 13
115	115	sale and shall adopt a form of notice of sale, which shall outline the terms and conditions, 14
116	116	and a form of advertisement, which shall be published in one or more daily or weekly 15
117	117	newspapers having a general circulation in the County and which may also be published in 16
118	118	one or more journals having a circulation primarily among banks and investment bankers. 17
119	119	At least one publication of the advertisement shall be made not less than 10 days before 18
120	120	the sale of the bonds. 19
121	121
122	122	Upon delivery of any bonds to the purchaser or purchasers, payment therefor shall 20
123	123	be made to the Treasurer of St. Mary’s County or such other official of St. Mary’s County 21
124	124	as may be designated to receive such payment in a resolution passed by the County before 22
125	125	such delivery. 23
126	126
127	127	SECTION 4. AND BE IT FURTHER ENACTED, That the net proceeds of the sale 24
128	128	of bonds shall be used and applied exclusively and solely for the acquisition, construction, 25
129	129	improvement, or development of public facilities for which the bonds are sold. If the 26
130	130	amounts borrowed shall prove inadequate to finance the projects described in the 27
131	131	resolution, the County may issue additional bonds with the limitations hereof for the 28
132	132	purpose of evidencing the borrowing of additional funds for such financing, provided the 29
133	133	resolution authorizing the sale of additional bonds shall so recite, but if the net proceeds of 30
134	134	the sale of any issue of bonds exceed the amount needed to finance the projects described 31
135	135	in the resolution, the excess funds so borrowed and not expended shall be applied to the 32
136	136	payment of the next principal maturity of the bonds or to the redemption of any part of the 33
137	137	bonds which have been made redeemable or to the purchase and cancellation of bonds, 34
138	138	unless the County shall adopt a resolution allocating the excess funds to the acquisition, 35
139	139	construction, improvement, or development of other public facilities, as defined and within 36
140	140	the limits set forth in this Act. 37
141	141
142	142	SECTION 5. AND BE IT FURTHER ENACTED, That the bonds hereby authorized 38
143	143	shall constitute, and they shall so recite, an irrevocable pledge of the full faith and credit 39
144	144	and unlimited taxing power of the County to the payment of the maturing principal of and 40
145	145	interest on the bonds as and when they become payable. In each and every fiscal year that 41
146	146	any of the bonds are outstanding, the County shall levy or cause to be levied ad valorem 42 4 HOUSE BILL 561
147	147
148	148
149	149	taxes upon all the assessable property within the corporate limits of the County in rate and 1
150	150	amount sufficient to provide for or assure the payment, when due, of the principal of and 2
151	151	interest on all the bonds maturing in each such fiscal year and, in the event the proceeds 3
152	152	from the taxes so levied in any such fiscal year shall prove inadequate for such payment, 4
153	153	additional taxes shall be levied in the succeeding fiscal year to make up any such deficiency. 5
154	154	The County may apply to the payment of the principal of and interest on any bonds issued 6
155	155	hereunder any funds received by it from the State of Maryland, the United States of 7
156	156	America, any agency or instrumentality thereof, or from any other source, if such funds are 8
157	157	granted for the purpose of assisting the County in financing the acquisition, construction, 9
158	158	improvement, or development of the public facilities defined in this Act and, to the extent 10
159	159	of any such funds received or receivable in any fiscal year, the taxes that are required to be 11
160	160	levied under this Act may be reduced accordingly. 12
161	161
162	162	SECTION 6. AND BE IT FURTHER ENACTED, That the County is further 13
163	163	authorized and empowered, at any time and from time to time, to issue its bonds in the 14
164	164	manner hereinabove described for the purpose of refunding, by payment at maturity or 15
165	165	upon purchase or redemption, any bonds issued hereunder. The validity of any such 16
166	166	refunding bonds shall in no way be dependent upon or related to the validity or invalidity 17
167	167	of the obligations so refunded. The powers herein granted with respect to the issuance of 18
168	168	bonds shall be applicable to the issuance of refunding bonds. Such refunding bonds may be 19
169	169	issued by the County in such an amount as shall be necessary for the purpose of providing 20
170	170	it with funds to pay any of its outstanding bonds issued hereunder at maturity, for the 21
171	171	purpose of providing it with funds to purchase in the open market any of its outstanding 22
172	172	bonds issued hereunder, prior to the maturity thereof, or for the purpose of providing it 23
173	173	with funds for the redemption prior to maturity of any outstanding bonds issued hereunder 24
174	174	which are, by their terms, redeemable, for the purpose of providing it with funds to pay 25
175	175	interest on any outstanding bonds issued hereunder prior to their payment at maturity of 26
176	176	purchase or redemption in advance of maturity, or for the purpose of providing it with funds 27
177	177	to pay any redemption or purchase premium in connection with the refunding of any of its 28
178	178	outstanding bonds issued hereunder. The proceeds of the sale of any such refunding bonds 29
179	179	shall be segregated and set apart by the County as a separate trust fund to be used solely 30
180	180	for the purpose of paying the purchase or redemption prices of the bonds to be refunded. 31
181	181
182	182	SECTION 7. AND BE IT FURTHER ENACTED, That the County may, prior to the 32
183	183	preparation of definitive bonds, issue interim certificates or temporary bonds, exchangeable 33
184	184	for definitive bonds when such bonds have been executed and are available for such 34
185	185	delivery, provided, however, that any such interim certificates or temporary bonds shall be 35
186	186	issued in all respects subject to the restrictions and requirements set forth in this Act. The 36
187	187	County may, by appropriate resolution, provide for the replacement of any bonds issued 37
188	188	hereunder which shall have become mutilated or lost or destroyed upon such conditions 38
189	189	and after receiving such indemnity as the County may require. 39
190	190
191	191	SECTION 8. AND BE IT FURTHER ENACTED, That any and all obligations issued 40
192	192	pursuant to the authority of this Act, their transfer, the interest payable thereon, and any 41
193	193	income derived therefrom in the hands of the holders thereof from time to time (including 42
194	194	any profit made in the sale thereof) shall be and are hereby declared to be at all times 43
195	195	exempt from State, county, municipal, or other taxation of every kind and nature 44 HOUSE BILL 561 5
196	196
197	197
198	198	whatsoever within the State of Maryland. Nothing in this Act shall prevent the County 1
199	199	from authorizing the issuance and sale of bonds the interest on which is not excludable 2
200	200	from gross income for federal income tax purposes. 3
201	201
202	202	SECTION 9. AND BE IT FURTHER ENACTED, That the authority to borrow 4
203	203	money and issue bonds conferred on the County by this Act shall be deemed to provide an 5
204	204	additional and alternative authority for borrowing money and shall be regarded as 6
205	205	supplemental and additional to powers conferred upon the County by other laws and shall 7
206	206	not be regarded as in derogation of any power now existing; and all Acts of the General 8
207	207	Assembly of Maryland heretofore passed authorizing the County to borrow money are 9
208	208	hereby continued to the extent that the powers contained in such Acts have not been 10
209	209	exercised, and nothing contained in this Act may be construed to impair, in any way, the 11
210	210	validity of any bonds that may have been issued by the County under the authority of any 12
211	211	said Acts, and the validity of the bonds is hereby ratified, confirmed, and approved. This 13
212	212	Act, being necessary for the welfare of the inhabitants of St. Mary’s County, shall be 14
213	213	liberally construed to effect the purposes hereof. All Acts and parts of Acts inconsistent 15
214	214	with the provisions of this Act are hereby repealed to the extent of such inconsistency. 16
215	215
216	216	SECTION 10. AND BE IT FURTHER ENACTED, That this Act shall take effect 17
217	217	June 1, 2025. 18