EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LA W.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0409*
SENATE BILL 409
C8, L6 5lr2323
CF HB 97
By: Senator King
Introduced and read first time: January 20, 2025
Assigned to: Budget and Taxation
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 22, 2025
CHAPTER ______
AN ACT concerning 1
Economic Development – County or Municipal Corporation Economic 2
Development Authority – Powers and Use of Proceeds 3
FOR the purpose of expanding the acceptable names authorized for an economic 4
development authority established by a county or municipal corporation; expanding 5
the powers of an authority, subject to limitations in the articles of incorporation of 6
the authority and resolutions of the legislative body of a county or municipal 7
corporation; providing that certain actions require prior approval of the legislative 8
body of a county or municipal corporation under certain circumstances; authorizing 9
an authority to issue certain bonds in accordance with certain requirements; 10
expanding the authorized uses of tax increment proceeds; and generally relating to 11
county and municipal economic development. 12
BY repealing and reenacting, with amendments, 13
Article – Economic Development 14
Section 12–101, 12–105, 12–107 through 12–109, 12–110(b), 12–111(a), 12–113(a), 15
12–201(e), (f), and (j), 12–203, 12–204, 12–207(a), 12–211, and 12–212 16
Annotated Code of Maryland 17
(2024 Replacement Volume and 2024 Supplement) 18
BY repealing and reenacting, without amendments, 19
Article – Economic Development 20
Section 12–110(a) and 12–201(a) 21
Annotated Code of Maryland 22
(2024 Replacement Volume and 2024 Supplement) 23 2 SENATE BILL 409
BY adding to 1
Article – Economic Development 2
Section 12–201(d–1) and (d–2) 3
Annotated Code of Maryland 4
(2024 Replacement Volume and 2024 Supplement) 5
BY repealing and reenacting, with amendments, 6
The Charter of Baltimore City 7
Article II – General Powers 8
Section (62)(a) 9
(2007 Replacement Volume, as amended) 10
(As enacted by Chapter 338 of the Arts of the General Assembly of 2008) 11
BY repealing and reenacting, without amendments, 12
The Charter of Baltimore City 13
Article II – General Powers 14
Section (62)(b)(1) and (e)(2)(i) and (ii) and (3) 15
(2007 Replacement Volume, as amended) 16
BY repealing and reenacting, with amendments, 17
The Charter of Baltimore City 18
Article II – General Powers 19
Section (62)(b)(7) through (17), (c), (d), (e)(1) and (2)(iv), (f)(1), (h)(2), and (j) 20
(2007 Replacement Volume, as amended) 21
BY adding to 22
The Charter of Baltimore City 23
Article II – General Powers 24
Section (62)(b)(7) and (b–1) 25
(2007 Replacement Volume, as amended) 26
BY repealing and reenacting, with amendments, 27
The Charter of Baltimore City 28
Article II – General Powers 29
Section (62)(b)(18) 30
(2007 Replacement Volume, as amended) 31
(As enacted by Chapter 544 of the Acts of the General Assembly of 2008) 32
BY repealing and reenacting, without amendments, 33
The Charter of Baltimore City 34
Article II – General Powers 35
Section (62)(e)(2)(iii) 36
(2007 Replacement Volume, as amended) 37
(As enacted by Chapter 544 of the Acts of the General Assembly of 2008) 38
SENATE BILL 409 3
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Economic Development 3
12–101. 4
(a) In this subtitle the following words have the meanings indicated. 5
(b) “Authority” means an industrial development authority , REVENUE 6
AUTHORITY, REDEVELOPMENT AUTHOR ITY, OR OTHER SIMILARLY N AMED 7
AUTHORITY established in accordance with § 12–105 of this subtitle. 8
(C) “AUTHORITY FUNDS ” MEANS: 9
(1) MONEY MADE AVAILABLE TO THE AUTHORITY UND ER TITLE 12, 10
SUBTITLE 2 OF THIS ARTICLE; 11
(2) REVENUES, PROCEEDS, EARNINGS, PREMIUMS, FEES, AND ANY 12
OTHER MONEY PAYABLE TO OR RECEIVED BY TH E AUTHORITY FROM THE 13
OWNERSHIP, USE, SALE, LEASE, OR OTHER DISPOSITION OF PROPERTY OF THE 14
AUTHORITY OR OTHERWI SE IN THE EXERCISE O F ITS POWERS; AND 15
(3) ANY OTHER MONEY MADE AVAILABLE TO THE AUT HORITY. 16
[(c)] (D) (1) “Bond” means a revenue bond, note, or other instrument, 17
certificate, or evidence of obligation that is issued and sold by a public body under this 18
subtitle [to finance a facility or to refund an outstanding bond]. 19
(2) “Bond” includes: 20
(i) a bond anticipation note; and 21
(ii) a note in the nature of commercial paper. 22
[(d)] (E) “Chief executive” means the president, chair, mayor, county executive, 23
or any other chief executive officer of a public body. 24
(F) “DEVELOPMENT ” INCLUDES NEW DEVELOP MENT, REDEVELOPMENT , 25
REVITALIZATION , AND RENOVATION . 26
[(e)] (G) “Facility” means any land or an interest in land, structure, working 27
capital, equipment, or other property, or any combination of them, the acquisition or 28
improvement of which the legislative body of a county or municipal corporation, the board 29
of directors of an authority, or the Maryland Industrial Development Financing Authority, 30 4 SENATE BILL 409
in its sole discretion, determines by resolution will accomplish one or more of the legislative 1
purposes listed in § 12–103(b) of this subtitle. 2
[(f)] (H) “Facility applicant” means a person, public or private corporation, or 3
other entity, whether for–profit or nonprofit, that, by letter of intent or similar agreement 4
with a public body, requests the public body to participate in financing a facility under this 5
subtitle for use by a facility user. 6
[(g)] (I) (1) “Facility user” means a person, public or private corporation, or 7
other entity, whether for–profit or nonprofit, that owns, leases, or uses all or part of a 8
facility. 9
(2) “Facility user” may include a facility applicant. 10
[(h)] (J) “Finance” includes refinance. 11
[(i)] (K) (1) “Finance board” means a unit or instrumentality of a county or 12
municipal corporation that is authorized by statute or charter to issue and sell bonds of the 13
county or municipal corporation. 14
(2) “Finance board” does not include the legislative body of a county or 15
municipal corporation. 16
[(j)] (L) “Improve” means to add, alter, construct, equip, expand, extend, 17
improve, install, reconstruct, rehabilitate, remodel, or repair. 18
[(k)] (M) “Improvement” means addition, alteration, construction, equipping, 19
expansion, extension, improvement, installation, reconstruction, rehabilitation, 20
remodeling, or repair. 21
(N) “PROJECT AREA ” MEANS A GEOGRAPHIC A REA DESIGNATED BY TH E 22
LEGISLATIVE BODY OF A COUNTY OR MUNICIPAL CORPORATIO N WITHIN ITS 23
JURISDICTION AS A PR OJECT AREA UNDER § 12–105(H) OF THIS SUBTITLE. 24
(O) “PROJECT AREA PLAN ” MEANS THE PLAN ESTAB LISHED BY A COUNTY 25
OR MUNICIPAL CORPORA TION FOR THE PROJECT AREA UNDER § 12–105(H) OF THIS 26
SUBTITLE THAT ACCOMP LISHES AT LEAST ONE OF THE PURPOSES UNDE R § 27
12–103(B) OF THIS SUBTITLE. 28
[(l)] (P) “Public body” means: 29
(1) a county; 30
(2) a municipal corporation; 31
(3) an authority; or 32 SENATE BILL 409 5
(4) the Maryland Industrial Development Financing Authority. 1
[(m)] (Q) (1) “Public port” means the public ports and harbors on the 2
Chesapeake Bay or the Isle of Wight Bay and their tributaries in the State. 3
(2) “Public port” includes: 4
(i) the Baltimore Harbor (the Patapsco River and its tributaries 5
north and west of North Point and Bodkin Point); 6
(ii) the Port of Cambridge (the south side of the Choptank River 7
between Hambrook’s Bar and the Emerson C. Harrington Bridge); and 8
(iii) the Port of Crisfield (the Little Annemessex River east of James 9
Island). 10
12–105. 11
(a) To accomplish one or more of the legislative purposes listed in § 12–103(b) of 12
this subtitle, the legislative body of a county or municipal corporation may adopt a 13
resolution to create an [industrial development] authority in accordance with this subtitle. 14
(b) A resolution adopted under subsection (a), (f), [or] (g), OR (H) of this section: 15
(1) is administrative in nature; 16
(2) is not subject to referendum; and 17
(3) in a county or municipal corporation that has a publicly elected chief 18
executive, is subject to approval by the chief executive. 19
(c) Subsection (a) of this section is self–executing and fully authorizes a county or 20
municipal corporation to establish an authority, notwithstanding any other statutory or 21
charter provision. 22
(d) A resolution adopted under subsection (a) of this section shall include 23
proposed articles of incorporation of the authority that state: 24
(1) the name of the authority, which shall be: 25
(I) “Industrial Development Authority of (name of the incorporating 26
county or municipal corporation)”; 27
(II) “REVENUE AUTHORITY OF (NAME OF THE INCORPOR ATING 28
COUNTY OR MUNICIPAL CORPORATION )”; 29 6 SENATE BILL 409
(III) “REDEVELOPMENT AUTHORITY OF (NAME OF THE 1
INCORPORATING COUNTY OR MUNICIPAL COR PORATION)”; OR 2
(IV) A SIMILARLY NAMED EN TITY; 3
(2) that the authority is formed under this subtitle; 4
(3) the names, addresses, and terms of office of the initial members of the 5
board of directors of the authority; 6
(4) the address of the principal office of the authority; 7
(5) the purposes for which the authority is formed; and 8
(6) the powers of the authority subject to the limitations on the powers of 9
an authority under this subtitle. 10
(e) (1) The chief executive of the incorporating county or municipal 11
corporation, or any other official designated in the resolution establishing the authority, 12
shall execute and file the articles of incorporation of the authority for record with the State 13
Department of Assessments and Taxation. 14
(2) When the State Department of Assessments and Taxation accepts the 15
articles of incorporation for record, the authority becomes a body politic and corporate and 16
an instrumentality of the incorporating county or municipal corporation. 17
(3) Acceptance of the articles of incorporation for record by the State 18
Department of Assessments and Taxation is conclusive evidence of the formation of the 19
authority. 20
(f) (1) By resolution, the legislative body of the incorporating county or 21
municipal corporation may adopt an amendment to the articles of incorporation of the 22
authority. 23
(2) Articles of amendment may contain any provision that lawfully could 24
be contained in articles of incorporation at the time of the amendment. 25
(3) The articles of amendment shall be filed for record with the State 26
Department of Assessments and Taxation. 27
(4) The articles of amendment are effective as of the time the State 28
Department of Assessments and Taxation accepts the articles for record. 29
(5) Acceptance of the articles of amendment for record by the State 30
Department of Assessments and Taxation is conclusive evidence that the articles have been 31
lawfully and properly adopted. 32 SENATE BILL 409 7
(g) (1) Subject to the provisions of this section and any limitations imposed by 1
law on the impairment of contracts, the incorporating county or municipal corporation, in 2
its sole discretion, by resolution may: 3
(i) set or change the NAME, structure, organization, procedures, 4
programs, or activities of the authority; or 5
(ii) terminate the authority. 6
(2) On termination of an authority: 7
(i) title to all property of the authority shall be transferred to and 8
vest in the incorporating county or municipal corporation; and 9
(ii) all obligations of the authority shall be transferred to and 10
assumed by the incorporating county or municipal corporation. 11
(H) THE LEGISLATIVE BODY OF A COUNTY OR MUNIC IPAL CORPORATION 12
MAY ADOPT A RESOLUTI ON: 13
(1) DESIGNATING A GEOGRA PHIC AREA WITHIN ITS JURISDICTION AS 14
A PROJECT AREA ; 15
(2) ESTABLISHING A PROJE CT AREA PLAN FOR A PROJECT AREA ; AND 16
(3) AUTHORIZING THE AUTH ORITY TO IMPLEMENT T HE PROJECT 17
AREA PLAN; AND 18
(4) IDENTIFYING ACTIONS , IF ANY, UNDER THIS SUBTITLE THAT 19
REQUIRE PRIOR APPROV AL BY THE LEGISLATIV E BODY OF THE COUNTY OR 20
MUNICIPAL CORPORATIO N. 21
(I) THE LEGISLATIVE BODY OF A COUNTY OR MUNICIPA L CORPORATION 22
HAS AUDITING AND OVE RSIGHT AUTHORITY OF AN AUTHORITY CREATED ON OR 23
AFTER OCTOBER 1, 2025. 24
(J) THE AUTHORITY SHALL I SSUE AN ANNUAL REPOR T TO THE 25
LEGISLATIVE BODY OF A COUNTY OR THE MUNI CIPAL CORPORATI ON DETAILING THE 26
AUTHORITY’S: 27
(1) ACTIVITIES; 28
(2) PROPERTY HOLDINGS ; 29
8 SENATE BILL 409
(3) FINANCIAL RECORDS ; AND 1
(4) ANY OTHER INFORMATIO N REQUESTED BY THE L EGISLATIVE 2
BODY OR MUNICIPAL CO RPORATION. 3
12–107. 4
(a) The board of directors of an authority shall govern the authority. 5
(b) Except as otherwise provided in this subtitle or the resolution establishing the 6
authority, the procedures of the incorporating county or municipal corporation control any 7
matter relating to the internal administration of the authority. 8
(C) THE BOARD OF DIRECTOR S OF AN AUTHORITY SH ALL PROVIDE FOR THE 9
MAINTENANCE OF THE A UTHORITY’S MINUTES, RESOLUTIONS , AND OTHER 10
RECORDS SEPARATE FRO M THOSE OF THE INCOR PORATING COUNTY OR M UNICIPAL 11
CORPORATION THAT CRE ATED THE AUTHORITY . 12
12–108. 13
Except as OTHERWISE PROVIDED I N THIS SUBTITLE OR A S necessary to pay debt 14
service or implement the public purposes or programs of the incorporating county or 15
municipal corporation, the net earnings of an authority may benefit only the incorporating 16
county or municipal corporation and may not benefit any person. 17
12–109. 18
(a) (1) Except as limited by its articles of incorporation, an authority has all 19
the powers set forth in this subtitle. 20
(2) (I) [An] SUBJECT TO SUBPARAGRA PHS (II) THROUGH (IV) OF 21
THIS PARAGRAPH , AN authority may: 22
[(i)] 1. receive money from [its incorporating county or municipal 23
corporation, the State, other governmental units, or nonprofit organizations] ANY PUBLIC, 24
PRIVATE, OR NONPROFIT SOURCE TO FUND THE AUTHORIT Y’S ACTIVITIES, POWERS, 25
AND DUTIES IN ACCORD ANCE WITH THIS SUBTITLE; 26
[(ii)] 2. charge fees for its services; 27
[(iii)] 3. have employees and consultants as it considers necessary; 28
[and] 29
[(iv)] 4. use the services of other governmental units; 30
SENATE BILL 409 9
5. OWN, HOLD, AND IMPROVE REAL AND PERSONAL 1
PROPERTY; 2
6. PURCHASE, HOLD, MAINTAIN, UTILIZE, MANAGE, 3
LEASE, OBTAIN OPTIONS ON , OR ACQUIRE BY GIFT , GRANT, BEQUEST, DEVISE, OR 4
OTHERWISE ANY REAL O R PERSONAL PROPERTY WHICH MAY INCLUDE TH E USE OF 5
AUTHORITY FUNDS OR T HE COLLECTION OF REV ENUE; 6
7. SELL, LEASE, EXCHANGE, TRANSFER, ASSIGN, 7
PLEDGE, OR DISPOSE OF ANY RE AL OR PERSONAL PROPE RTY; 8
8. ENTER INTO CONTRACTS AND OTHER INSTRUMENT S 9
NECESSARY OR CONVENI ENT TO EXERCISE THE AUTHORITY’S POWERS; 10
9. PROVIDE FOR THE DEMO LITION, CONSTRUCTION , 11
RECONSTRUCTION , REHABILITATION , IMPROVEMENT , ALTERATION, OR REPAIR OF 12
REAL AND PERSONAL PR OPERTY; 13
10. INSURE OR PROVIDE FO R THE INSURANCE OF R EAL 14
AND PERSONAL PROPERT Y OR OPERATIONS OF T HE AUTHORITY AGAINST ANY RISKS 15
OR HAZARDS; 16
11. SUE AND BE SUED ; 17
12. IF DISPOSING OF OR L EASING LAND , RETAIN 18
CONTROL OR ESTABLISH RESTRICTIONS AND COV ENANTS RUNNING WITH THE LAND 19
CONSISTENT WITH THE PROJECT AREA PLAN ; 20
13. ENTER INTO A LEASE A GREEMENT ON REAL OR 21
PERSONAL PROPERTY , EITHER AS LESSEE OR LESSOR; 22
14. BORROW MONEY OR ACCEP T FINANCIAL OR OTHER 23
ASSISTANCE FROM A PU BLIC ENTITY OR ANY O THER SOURCE FOR ANY OF THE 24
PURPOSES OF THIS SUB TITLE AND COMPLY WIT H ANY CONDITIONS OF ANY LOAN OR 25
ASSISTANCE; 26
15. ISSUE BONDS TO FINAN CE THE UNDERTAKING O F ANY 27
PROJECT AREA DEVELOPMENT OR F OR ANY OF THE AUTHOR ITY’S OTHER PURPOSES , 28
INCLUDING: 29
A. REIMBURSING AN ADVAN CE MADE BY THE AUTHO RITY 30
OR BY A PUBLIC ENTIT Y TO THE AUTHORITY ; 31
10 SENATE BILL 409
B. REFUNDING BONDS TO P AY OR RETIRE BONDS 1
PREVIOUSLY ISSUED BY THE AUTHORITY ; AND 2
C. REFUNDING BONDS TO P AY OR RETIRE BONDS 3
PREVIOUSLY ISSUED BY THE AUTHORITY OR THE COUNTY OR MUNICIPAL 4
CORPORATION THAT DES IGNATED THE PROJECT AREA FOR EXPENSES AS SOCIATED 5
WITH PROJECT AREA DE VELOPMENT ; 6
16. PAY AN IMPACT FEE , EXACTION, OR OTHER FEE IN 7
CONNECTION WITH LAND DEVELOPMENT IMPOSED BY THE COUNTY OR MUN ICIPAL 8
CORPORATION THAT DES IGNATED THE PROJECT AREA; 9
17. MAKE LOANS; 10
18. USE AUTHORITY FUNDS FOR THE PURPOSES OF THIS 11
SUBTITLE; AND 12
19. TRANSACT OTHER BUSIN ESS AND EXERCISE AL L 13
OTHER POWERS UNDER T HIS SUBTITLE. 14
(II) AN AUTHORITY MAY ACQU IRE REAL PROPERTY UN DER 15
SUBPARAGRAPH (I) OF THIS PARAGRAPH TH AT IS OUTSIDE A PROJ ECT AREA ONLY 16
IF: 17
1. THE BOARD OF DIRECTO RS OF THE AUTHORITY 18
DETERMINES THAT THE PROPERTY WILL BENEFI T A PROJECT AREA ; AND 19
2. THE AUTHORITY RECEIV ES PRIOR APPROVAL OF THE 20
LEGISLATIVE BODY OF THE COUNTY OR MUNICI PAL CORPORATION . 21
(III) AUTHORITY FUNDS SHALL BE ACCOUNTED FOR 22
SEPARATELY FROM THE FUNDS OF THE COUNTY OR MUNICIPAL CORPORA TION THAT 23
CREATED THE AUTHORITY . 24
(IV) AN AUTHORITY MAY ACCU MULATE AUTHORITY FUN DS, 25
RETAINED EARNINGS , OR FUND BALANCES IN ANY FUND. 26
(b) For the purposes of this subtitle, each county and municipal corporation has 27
all the powers granted in this subtitle to an authority, including the power to make loans 28
to private enterprises competing with enterprises not receiving the loans. 29
(c) (1) (i) An authority shall operate and exercise its powers solely to 30
accomplish one or more of the legislative purposes of this subtitle. 31
SENATE BILL 409 11
(ii) The incorporating county or municipal corporation may use the 1
authority’s exercise of its powers to accomplish one or more of the legislative purposes. 2
(2) An authority or an incorporating county or municipal corporation may 3
exercise its powers regardless of any effect on economic competition. 4
(3) The powers granted to a county or municipal corporation under 5
paragraph (2) of this subsection do not: 6
(i) grant to the county or municipal corporation powers in any 7
substantive area not otherwise granted to the county or municipal corporation under other 8
public general or public local law; 9
(ii) restrict the county or municipal corporation from exercising any 10
power granted to the county or municipal corporation under other public general or public 11
local law or otherwise; 12
(iii) authorize the county or municipal corporation, or the officers of 13
the county or municipal corporation, to engage in an activity that is beyond the power 14
granted under other public general or public local law or otherwise; or 15
(iv) preempt or supersede the regulatory authority of a unit of State 16
government under a public general law. 17
(4) The incorporating county or municipal corporation is not precluded 18
from directly exercising the powers granted to an authority under this subtitle after the 19
establishment of the authority. 20
12–110. 21
(a) Notwithstanding any limitation of law, a public body may issue and sell bonds 22
periodically to accomplish the legislative purposes of this subtitle. 23
(b) (1) A public body may issue and sell bonds [to]: 24
(i) subject to paragraph (2) of this subsection, TO finance the costs 25
of the acquisition or improvement of a facility for a facility user, including working capital; 26
(ii) TO refund outstanding bonds; 27
(iii) TO pay the costs of preparing, printing, selling, and issuing the 28
bonds; 29
(iv) TO fund reserves; [and] 30
12 SENATE BILL 409
(v) TO pay the interest on the bonds in the amount and for the period 1
the public body considers reasonable; AND 2
(VI) FOR ANY OTHER PURP OSE IN THIS SUBTITLE . 3
(2) (i) A public body may not issue bonds to acquire working capital 4
unless the bonds are secured by a letter of credit or an interest in property. 5
(ii) Working capital acquired by issuing bonds may not exceed 25% 6
of the principal amount of the bonds. 7
12–111. 8
(a) For each issue of its bonds, the legislative body of a county or municipal 9
corporation, the board of directors of an authority, or the Maryland Industrial Development 10
Financing Authority, shall adopt a resolution that: 11
(1) specifies and describes the facility OR OTHER PROPOSED 12
UNDERTAKING TO BE FI NANCED WITH THE PROC EEDS OF BONDS ; 13
(2) generally describes the public purpose to be served and the financing 14
transaction; 15
(3) specifies the maximum principal amount of the bonds that may be 16
issued; and 17
(4) imposes terms or conditions on the issuance and sale of bonds it 18
considers appropriate. 19
12–113. 20
(a) (1) A bond and the interest on a bond are limited obligations of the public 21
body. 22
(2) Except for bond anticipation notes and notes in the nature of 23
commercial paper, the principal of, premium, and interest on a bond are payable solely 24
from: 25
(i) money from the financing of a facility; 26
(II) AUTHORITY FUNDS OF T HE AUTHORITY ISSUING THE 27
BONDS; or 28
[(ii)] (III) other money made available to the public body. 29
(3) Bonds and the interest on them: 30 SENATE BILL 409 13
(i) are not debts or charges against the general credit or taxing 1
powers of a public body within the meaning of any constitutional or charter provision or 2
statutory limitation; and 3
(ii) may not give rise to any pecuniary liability of an issuing public 4
body. 5
(4) A bond may state on its face that the bond: 6
(i) is issued under this subtitle; and 7
(ii) is not a debt to which the public body’s faith and credit is pledged. 8
12–201. 9
(a) In this subtitle the following words have the meanings indicated. 10
(D–1) “AUTHORITY” HAS THE MEANING STAT ED IN § 12–101 OF THIS TITLE. 11
(D–2) “AUTHORITY FUNDS ” HAS THE MEANING STAT ED IN § 12–101 OF THIS 12
TITLE. 13
(e) “Bond” means a revenue bond, note, or other similar instrument issued in 14
accordance with this subtitle by: 15
(1) a political subdivision; 16
(2) AN AUTHORITY ; or 17
[(2)] (3) the revenue authority of Prince George’s County. 18
(f) “Chief executive” means the president, chair, mayor, or other chief executive 19
officer of a political subdivision, AN AUTHORITY , or the revenue authority of Prince 20
George’s County. 21
(j) “Issuer” means AN AUTHORITY , a political subdivision, or the revenue 22
authority of Prince George’s County that issues a bond under this subtitle. 23
12–203. 24
(a) Before [issuing] bonds ARE ISSUED, the governing body of the political 25
subdivision shall: 26
(1) by resolution: 27
14 SENATE BILL 409
(i) designate a contiguous area within its jurisdiction as a 1
development district; 2
(ii) identify an area that has been designated a sustainable 3
community; or 4
(iii) identify an area that has been designated a RISE zone; 5
(2) receive from the Supervisor of Assessments a certification of the 6
amount of the original base, or if applicable, the adjusted assessable base; and 7
(3) pledge that until the bonds are fully paid, or a longer period, the real 8
property taxes in the development district, a RISE zone, or a sustainable community shall 9
be divided as follows: 10
(i) the portion of the taxes that would be produced at the current tax 11
rate on the original taxable value base shall be paid to the respective taxing authorities in 12
the same manner as taxes on other property are paid; and 13
(ii) the portion of the taxes on the tax increment that normally would 14
be paid into the general fund of the political subdivision shall be paid into the special fund 15
established under § 12–208 of this subtitle and applied in accordance with § 12–209 of this 16
subtitle. 17
(b) (1) In this subsection, “brownfields site” has the meaning stated in § 5–301 18
of this article. 19
(2) Before [issuing] bonds ARE ISSUED and as part of the resolution 20
required under subsection (a) of this section, the governing body of the political subdivision 21
may determine the original base of a brownfields site in a sustainable community. 22
(3) The determination of the original base of a brownfields site under this 23
section: 24
(i) is not a determination of the value of the brownfields site; and 25
(ii) may not be used to determine a property tax assessment or 26
appeal of a property tax assessment under the Tax – Property Article. 27
(c) The establishment or identification by a county of a development district, a 28
RISE zone, or a sustainable community that is wholly or partly in a municipal corporation 29
shall also require a resolution approving the development district, RISE zone, or 30
sustainable community by the governing body of the municipal corporation. 31
12–204. 32
SENATE BILL 409 15
(a) Notwithstanding any limitation of law, an issuer may issue bonds from time 1
to time to finance the development of an industrial, commercial, or residential area. 2
(b) To issue bonds under this subtitle, the governing body of a political subdivision 3
shall adopt an ordinance that: 4
(1) describes the proposed undertaking; and 5
(2) states: 6
(i) that the governing body has complied with §§ 12–203 and 7
12–208(c) and (d) of this subtitle; 8
(ii) the maximum principal amount of the bonds; and 9
(iii) the maximum rate of interest on the bonds. 10
(c) The ordinance may specify the following for bonds issued to carry out the 11
financing of the proposed undertaking: 12
(1) the principal amount; 13
(2) the rate of interest; 14
(3) the manner and terms of sale; 15
(4) the time of execution, issuance, and delivery; 16
(5) the form and denomination; 17
(6) the manner in which, and the times and places at which principal and 18
interest shall be paid; 19
(7) conditions for redemption before maturity; or 20
(8) other provisions consistent with this subtitle that the governing body of 21
the political subdivision determines are necessary or desirable. 22
(d) (1) The revenue authority of Prince George’s County may issue bonds in 23
accordance with an ordinance adopted by the governing body of Prince George’s County. 24
(2) AN AUTHORITY MAY ISSU E BONDS IN ACCORDANC E WITH AN 25
ORDINANCE ADOPTED BY THE GOVERNING BODY T HAT CREATED THE AUTH ORITY 26
UNDER SUBTITLE 1 OF THIS TITLE. 27
(e) The ordinance may specify the items listed in subsection (c) of this section or 28
may authorize: 29 16 SENATE BILL 409
(1) the finance board to specify those items by resolution or ordinance; or 1
(2) the chief executive to specify those items by executive order. 2
(f) (1) Except as provided in paragraph (2) of this subsection, neither an 3
ordinance authorizing the bonds nor an ordinance, resolution, or executive order issued, 4
passed, or adopted under this section may be subject to referendum because of any other 5
State or local law. 6
(2) An ordinance that authorizes the pledge of the full faith and credit of a 7
political subdivision to the payment of principal and interest on a bond is subject to any 8
applicable right to referendum. 9
12–207. 10
(a) Except as provided in subsections (b) and (e) of this section, THE SPECIAL 11
FUND ESTABLISHED UND ER § 12–208 OF THIS SUBTITLE OR bond proceeds may be used 12
[only]: 13
(1) to buy, lease, condemn, or otherwise acquire property, or an interest in 14
property: 15
(i) in the development district, a RISE zone, or a sustainable 16
community; or 17
(ii) needed for a right–of–way or other easement to or from the 18
development district, a RISE zone, or a sustainable community; 19
(2) for site removal; 20
(3) for surveys and studies; 21
(4) to relocate businesses or residents; 22
(5) to install utilities, construct parks and playgrounds, and for other 23
needed improvements including: 24
(i) roads to, from, or in the development district; 25
(ii) parking AND ANCILLARY IMPROV EMENTS RELATED TO 26
VEHICLES; and 27
(iii) lighting; 28
(6) to construct or rehabilitate buildings for a governmental purpose or use; 29
SENATE BILL 409 17
(7) for reserves [or], capitalized interest, AND WORKING CAPITAL ; 1
(8) for necessary costs to issue bonds; [and] 2
(9) to pay the principal of and interest on loans, advances, or indebtedness 3
that a political subdivision incurs for a purpose specified in this section; 4
(10) FOR THE PURPOSE OF E NCOURAGING DEVELOPME NT IN THE 5
DEVELOPMENT DISTRICT , A RISE ZONE, OR A SUSTAINABLE COM MUNITY, TO 6
INSTALL PUBLIC OR PR IVATE INFRASTRUCTURE IMPROVEMENTS , INCLUDING: 7
(I) STREETS; 8
(II) UTILITIES; 9
(III) STREET LIGHTS ; 10
(IV) STORMWATER MANAGEMEN T AND STORM DRAIN 11
FACILITIES; 12
(V) FENCING; 13
(VI) NOISE WALLS; 14
(VII) RETAINING WALLS ; 15
(VIII) TRAILS; 16
(IX) SIDEWALKS; 17
(X) PUBLIC RECREATIONAL FACILITIES; 18
(XI) LANDSCAPING , STREETSCAPING, AND PUBLIC ART ; AND 19
(XII) PEDESTRIAN AND VEHIC ULAR BRIDGES ; 20
(11) TO ISSUE LOANS FOR T HE PURPOSE OF ENCOUR AGING 21
DEVELOPMENT IN THE D EVELOPMENT DISTRICT , RISE ZONE, OR SUSTAINABLE 22
COMMUNITY ; 23
(12) FOR ADMINISTRATIVE O VERHEAD, LEGAL, OR OTHER OPERATING 24
EXPENSES OF THE AUTH ORITY, INCLUDING THE FEES A ND EXPENSES OF 25
CONSULTANTS ; 26
(13) TO FINANCE OR REFINA NCE IN WHOLE OR IN P ART: 27 18 SENATE BILL 409
(I) DEVELOPMENT COSTS OF A DEVELOPMENT DISTRI CT, 1
INCLUDING ENVIRONMEN TAL REMEDIATION ; 2
(II) IF THE EXPENDITURE S ARE RELATED TO HOU SING IN A 3
DEVELOPMENT DISTRICT : 4
1. THE ACQUISITION OF T HE LAND; AND 5
2. THE COST OF INSTALLA TION, CONSTRUCTION , OR 6
REHABILITATION OF TH E HOUSING–RELATED BUILDING , FACILITY, STRUCTURE, OR 7
OTHER HOUSING IMPROV EMENT, INCLUDING INFRASTRUCTURE IMPRO VEMENTS 8
RELATED TO HOUSING ; AND 9
(III) IF THE EXPENDITURES ARE RELATED TO HOUSI NG NOT IN A 10
DEVELOPMENT DISTRICT : 11
1. REPLACING HOUSING UN ITS LOST IN A DEVELO PMENT 12
DISTRICT; 13
2. INCREASING, IMPROVING, OR PRESERVING THE 14
SUPPLY OF AFFORDABLE HOUSIN G WITHIN THE BOUNDAR Y OF THE DEVELOPMENT 15
DISTRICT; OR 16
3. RELOCATING MOBILE HO ME PARK RESIDENTS 17
DISPLACED BY DEVELOP MENT INSIDE OR OUTSI DE A DEVELOPMENT DIS TRICT; 18
(14) FOR AFFORDABLE HOUSI NG OR HOMELESS ASSIS TANCE, TO LEND, 19
GRANT, OR CONTRIBUTE FUNDS TO A PERSON , PUBLIC OR PRIVATE EN TITY, 20
HOUSING AUTHORITY , OR NONPROFIT ENTITY ; 21
(15) FOR AN INCENTIVE OR OTHER CONSIDERATION PAID WITH 22
RESPECT TO THE DEVEL OPMENT DISTRICT ; 23
(16) FOR THE ACQUISITION OF LAND AND THE COST OF THE 24
INSTALLATION AND CON STRUCTION OF ANY PUB LICLY OWNED BUILDING , FACILITY, 25
STRUCTURE, OR OTHER IMPROVEMENT WITHIN THE DEVELOPME NT DISTRICT; 26
(17) BY AN AUTHORITY FOR THE PURPOSES OF THIS SUBSECTION AND 27
SUBTITLE 1 OF THIS TITLE; 28
(18) IF THE BOARD OF DIRE CTORS ESTABLISHED UND ER § 12–106 OF 29
THIS TITLE AND THE P OLITICAL SUBDIVISION THAT DESIGNATED THE 30
DEVELOPMENT DISTRICT ADOPT A RESOLUTION T HAT THE PUBLICLY OWN ED 31 SENATE BILL 409 19
INFRASTRUCTURE AND I MPROVEMENTS BENEFIT THE DEVELOPMENT DIST RICT, 1
FOR THE INFRASTRUCTU RE AND IMP ROVEMENTS OUTSIDE TH E DEVELOPMENT 2
DISTRICT; 3
(19) IF THE BOARD OF DIRE CTORS ESTABLISHED UN DER § 12–106 OF 4
THIS TITLE AND THE P OLITICAL SUBDIVISION THAT DESIGNATED THE 5
DEVELOPMENT DISTRICT APPROVE AND PROJECTE D AUTHORITY FUNDS AR E 6
SUFFICIENT TO REPAY THE LOAN, TO MAKE LOANS FROM O NE DEVELOPMENT 7
DISTRICT TO ANOTHER ; 8
(20) AS A GRANT TO THE PO LITICAL SUBDIVISION TO OFFSET THE 9
TAXES PAID TO THE SP ECIAL FUND ESTABLISH ED UNDER § 12–208 OF THIS 10
SUBTITLE THAT WERE P AID TO THE AUTHORITY FOR THE PURPOSES UND ER THIS 11
SUBTITLE; 12
(21) (I) FOR CONVENTION , CONFERENCE , OR VISITOR CENTERS ; 13
AND 14
(II) TO MAINTAIN INFRASTR UCTURE IMPROVEMENTS AND 15
CONVENTION , CONFERENCE , OR VISITOR CENTERS ; AND 16
(22) FOR ANY OTHER PURPOS E AUTHORIZED UNDER T HIS SUBTITLE. 17
12–211. 18
(a) The principal amount of bonds, interest payable on bonds, the transfer of 19
bonds, and income from bonds, including profit made in the sale or transfer of bonds, are 20
exempt from State and local taxes. 21
(b) If a political subdivision OR AN AUTHORITY leases as a lessor its property 22
within a development district, a RISE zone, or a sustainable community: 23
(1) the property shall be assessed and taxed in the same manner as 24
privately owned property; and 25
(2) the lease shall require the lessee to pay taxes or payments in lieu of 26
taxes on the assessed value of the entire property and not only on the assessed value of the 27
leasehold interest. 28
12–212. 29
This subtitle does not authorize AN AUTHORITY , a county, or a municipal 30
corporation to acquire property by eminent domain. 31
The Charter of Baltimore City 32 20 SENATE BILL 409
Article II – General Powers 1
The Mayor and City Council of Baltimore shall have full power and authority to 2
exercise all of the powers heretofore or hereafter granted to it by the Constitution of 3
Maryland or by any Public General or Public Local Laws of the State of Maryland; and in 4
particular, without limitation upon the foregoing, shall have power by ordinance, or such 5
other method as may be provided for in its Charter, subject to the provisions of said 6
Constitution and Public General Laws: 7
(62) 8
(a) (1) To borrow money by issuing and selling bonds, at any time and from 9
time to time, for the purpose of financing and refinancing the development of an industrial, 10
commercial, or residential area in Baltimore City. Such bonds shall be payable from and 11
secured by a pledge of the special fund described in subsection (d)(3)(ii) of this section and 12
the Mayor and City Council of Baltimore may also establish sinking funds, establish debt 13
service reserve funds, or pledge other assets and revenues towards the payments of the 14
principal and interest OR OTHER PURPOSES AS PROVIDED UNDER THIS SECTION, 15
including revenues received by the Mayor and City Council of Baltimore pursuant to a 16
development agreement. 17
(2) (i) In lieu of the pledges set forth in paragraph (1) of this subsection, 18
the authorizing ordinance or trust agreement, subject to subparagraphs (ii) and (iii) of this 19
paragraph, may pledge or assign: 20
1. all or any part of that portion of the revenues and receipts 21
from the taxes representing the levy of the tax increment that would normally be paid to 22
the Mayor and City Council of Baltimore to the payment of such principal and interest; 23
2. the special fund described in subsection (d)(3)(ii) of this 24
section and any other fund into which all or any part of such revenues and receipts are 25
deposited after such revenues and receipts are appropriated by the Mayor and City Council 26
of Baltimore to the payment of such principal and interest; 27
3. amounts provided to the Mayor and City Council of 28
Baltimore by the State under § 2–222 of the Tax – Property Article of the Annotated Code 29
of Maryland; and 30
4. any other assets and revenues of the Mayor and City 31
Council of Baltimore. 32
(ii) The revenues and receipts may not be irrevocably pledged to the 33
payment of such principal and interest and the obligation to pay such principal and interest 34
from such revenues and receipts shall be subject to annual appropriation by the Mayor and 35
City Council of Baltimore. 36
SENATE BILL 409 21
(iii) The Mayor and City Council of Baltimore may not pledge its full 1
faith and credit or unlimited taxing power to the payment of such bonds. 2
(b) (1) In this section the following words have the meanings indicated, unless 3
the context clearly indicates another or different meaning or intent: 4
(7) “AUTHORITY” HAS THE MEANING PROV IDED IN § 12–101 OF THE 5
ECONOMIC DEVELOPMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND. 6
[(7)] (8) “Bonds” or “bond” means any bonds or bond, notes or note, or 7
other similar instruments or instrument issued by the Mayor and City Council of Baltimore 8
OR AN AUTHORITY pursuant to and in accordance with this section. 9
[(8)] (9) “Development” includes new development, redevelopment, 10
revitalization, and renovation. 11
[(9)] (10) “Development agreement” means an agreement between the 12
Mayor and City Council of Baltimore OR AN AUTHORITY and any person involved in or 13
responsible for development of property within a development district pursuant to which 14
such person shall agree to pay in each year in which any bonds are outstanding an amount 15
equal to all or a portion of the debt service on bonds issued pursuant to this section to 16
finance or refinance development in such development district. 17
[(10)] (11) “Development district” means an area or areas within the City of 18
Baltimore designated by an ordinance of the Mayor and City Council of Baltimore. 19
[(11)] (12) “Distressed property” has the meaning stated in § 21–17(a) of the 20
Public Local Laws of Baltimore City. 21
[(12)] (13) “Original assessable base” means the assessable base as of 22
January 1 of that year preceding the effective date of the ordinance creating the 23
development district under subsection (d) of this section. 24
[(13)] (14) “Original full cash value” means the dollar amount which is 25
determined by dividing the original assessable base by the assessment ratio used to 26
determine the original assessable base. 27
[(14)] (15) “Original taxable value” means for any tax year the dollar 28
amount that is the lesser of: 29
(i) the product of the original full cash value times the assessment 30
ratio applicable to that tax year; 31
(ii) the original assessable base; or 32
22 SENATE BILL 409
(iii) if an adjusted assessable base applies, then the “original taxable 1
value” is the adjusted assessable base. 2
[(15)] (16) “Supervisor of Assessments” means the Supervisor of 3
Assessments for Baltimore City. 4
[(16)] (17) “Tax increment” means for any tax year the amount by which the 5
assessable base as of January 1 preceding that tax year exceeds the original taxable value, 6
divided by the assessment ratio used to determine the original taxable value. 7
[(17)] (18) “Tax year” means the period from July 1 of a calendar year 8
through June 30 of the next calendar year. 9
[(18)] (19) “State obligations” means any bonds or bond, notes or note, or 10
other similar instruments or instrument issued by the Maryland Economic Development 11
Corporation, the State of Maryland, or any agency, department, or political subdivision 12
thereof, the proceeds of which have been used for any of the purposes specified in subsection 13
(c) of this section. 14
(B–1) AN AUTHORITY MAY ISSU E BONDS I N ACCORDANCE WITH AN 15
ORDINANCE ADOPTED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE UNDER 16
THIS SECTION. 17
(c) All proceeds received from any bonds issued and sold pursuant to this section 18
[shall], REVENUE FROM PROPERT Y TAXES LEVIED ON A TAX INCREMENT , AND 19
PROPERTY TAXES ALLOC ATED TO THE SPECIAL FUND UNDER SUBSECTIO N (D)(3)(II) 20
OF THIS SECTION MAY be applied [solely] for: 21
(1) the cost of purchasing, leasing, condemning, or otherwise acquiring 22
land or other property, or an interest in them, in the designated development district area 23
or as necessary for a right–of–way or other easement to or from the development district 24
area; 25
(2) site removal; 26
(3) surveys and studies; 27
(4) relocation of businesses or residents; 28
(5) installation of utilities, construction of parks and playgrounds, and 29
other necessary improvements including streets and roads to, from, or within the 30
development district, lighting, and other facilities; 31
(6) construction or rehabilitation of buildings provided that such buildings: 32
(i) are to be devoted to a governmental use or purpose; 33 SENATE BILL 409 23
(ii) are abandoned property; 1
(iii) are distressed property; or 2
(iv) will provide units of affordable housing; 3
(7) reserves, WORKING CAPITAL , and capitalized interest on the bonds; 4
(8) necessary costs of issuing bonds; 5
(9) structured and surface parking facilities AND ANCILLARY 6
IMPROVEMENTS RELATED TO VEHICLES that are: 7
(i) publicly owned; or 8
(ii) privately owned but serve a public purpose; [and] 9
(10) payment of the principal and interest on loans, money advanced, or 10
indebtedness incurred by the Mayor and City Council of Baltimore for any of the purposes 11
set out in this section; 12
(11) THE PURPOSE OF ENCOU RAGING DEVELOPMENT IN THE 13
DEVELOPMENT DISTRICT , A RISE ZONE, OR A SUSTAINABLE COM MUNITY, TO 14
INSTALL PUBLIC OR PR IVATE INFRASTRUCTURE IMPROVEMENTS , INCLUDING: 15
(I) STREETS; 16
(II) UTILITIES; 17
(III) STREET LIGHTS ; 18
(IV) STORMWATER MANAGEMEN T AND STORM DR AIN 19
FACILITIES; 20
(V) FENCING; 21
(VI) NOISE WALLS; 22
(VII) RETAINING WALLS ; 23
(VIII) TRAILS; 24
(IX) SIDEWALKS; 25
24 SENATE BILL 409
(X) PUBLIC RECREATIONAL FACILITIES; 1
(XI) LANDSCAPING , STREETSCAPING , AND PUBLIC ART ; AND 2
(XII) PEDESTRIAN AND VEHIC ULAR BRIDGES ; 3
(12) ISSUING LOANS FOR TH E PURPOSE OF ENCOURA GING 4
DEVELOPMENT IN THE D EVELOPMENT DISTRICT , RISE ZONE, OR SUSTAINABLE 5
COMMUNITY ; 6
(13) ADMINISTRATIVE OVERH EAD, LEGAL, OR OTHER OPERATING 7
EXPENSES OF AN AUTHO RITY, INCLUDING THE FEES AND EX PENSES OF 8
CONSULTANTS ; 9
(14) FINANCING OR REFINAN CING ALL OR PART OF : 10
(I) DEVELOPMENT COSTS OF A DEVELOPMENT DISTRI CT, 11
INCLUDING ENVIRONMEN TAL REMEDIATION ; 12
(II) IF THE EXPENDITURES ARE RELATED TO HOUSI NG IN A 13
DEVELOPMENT DISTRICT: 14
1. THE ACQUISITION OF T HE LAND; AND 15
2. THE COST OF INSTALLA TION, CONSTRUCTION , OR 16
REHABILITATION OF TH E HOUSING–RELATED BUILDING , FACILITY, STRUCTURE, OR 17
OTHER HOUSING IMPROV EMENT, INCLUDING INFRASTRUC TURE IMPROVEMENTS 18
RELATED TO HOUSING; AND 19
(III) IF THE EXPENDITURES ARE RELATED TO HOUSI NG NOT IN A 20
DEVELOPMENT DISTRICT : 21
1. REPLACING HOUSING UN ITS LOST IN A DEVELO PMENT 22
DISTRICT; 23
2. INCREASING, IMPROVING, OR PRESERVING THE 24
SUPPLY OF AFFORDABLE HOUSING WITHIN THE B OUNDARY OF THE DEVELOPME NT 25
DISTRICT; OR 26
3. RELOCATING MOBILE HO ME PARK RESIDENTS 27
DISPLACED BY DEVELOP MENT INSIDE OR OUTSI DE A DEVELOPMENT DIS TRICT; 28
SENATE BILL 409 25
(15) AFFORDABLE HOUSING O R HOMELESS ASSISTANC E, TO LEND, 1
GRANT, OR CONTRIBUTE FUNDS TO A PERSON , PUBLIC OR PRIVATE ENTITY , 2
HOUSING AUTHORITY , OR NONPROFIT ENTITY ; 3
(16) AN INCENTIVE OR OTHE R CONSIDERATION PAID WITH RESPECT 4
TO A DEVELOPMENT DIS TRICT; 5
(17) THE ACQUISITION OF L AND AND THE COST OF THE INSTALLATION 6
AND CONSTRUCTION OF ANY PUBLICLY OWNED B UILDING, FACILITY, STRUCTURE, 7
OR OTHER IMPROVEMENT WITHIN THE DEVELOPME NT DISTRICT; 8
(18) IF THE BOARD OF DIRE CTORS ESTABLISHED UN DER § 12–106 OF 9
THE ECONOMIC DEVELOPMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND 10
AND THE MAYOR AND CITY COUNCIL OF BALTIMORE ADOPT A RESOLUTION T HAT 11
THE PUBLICLY OWNED I NFRASTRUCTURE AND IM PROVEMENTS BENEFIT T HE 12
DEVELOPMENT DISTRICT , THE INFRASTRUCTURE A ND IMPROVEMENTS OUTS IDE 13
THE DEVELOPMENT DIST RICT; 14
(19) IF THE BOARD OF DIRE CTORS ESTABLISHED UN DER § 12–106 OF 15
THE ECONOMIC DEVELOPMENT ARTICLE OF THE ANNOTATED CODE OF MARYLAND 16
AND THE MAYOR AND CITY COUNCIL OF BALTIMORE APPROVE AND PROJECTED 17
AUTHORITY FUNDS ARE SUFFICIENT TO REPAY THE LOAN, MAKING LOANS FROM 18
ONE DEVELOPMENT DIST RICT TO ANOTHER ; 19
(20) A GRANT TO THE MAYOR AND CITY COUNCIL OF BALTIMORE TO 20
OFFSET THE REVENUES FROM PROPERTY TAXES LEVIED ON A TAX INCR EMENT THAT 21
WAS PAID TO THE AUTH ORITY FOR THE PURPOS ES UNDER THIS SECTIO N; 22
(21) (I) CONVENTION , CONFERENCE , OR VISITOR CENTERS ; AND 23
(II) MAINTAINING INFRASTRUCTURE IMPRO VEMENTS AND 24
CONVENTION , CONFERENCE , OR VISITOR CENTERS ; AND 25
(22) ANY OTHER PURPOSE AU THORIZED UNDER THIS SECTION OR 26
TITLE 12, SUBTITLE 2 OF THE ECONOMIC DEVELOPMENT ARTICLE OF THE 27
ANNOTATED CODE OF MARYLAND. 28
(d) Before [issuing] any bonds ARE ISSUED under this section, the Mayor and 29
City Council of Baltimore shall: 30
(1) designate by ordinance an area or areas within the City of Baltimore as 31
a “development district”; 32
(2) receive from the Supervisor of Assessments a certification as to the 33
amount of the original assessable base, or if applicable, the adjusted assessable base; and 34 26 SENATE BILL 409
(3) provide that until the bonds have been fully paid or thereafter, the 1
property taxes on real property within the development district shall be divided as follows: 2
(i) that portion of the taxes which would be produced by the rate at 3
which taxes levied each year by the Mayor and City Council of Baltimore upon the original 4
taxable value shall be allocated to and when collected paid into the funds of the Mayor and 5
City Council of Baltimore in the same manner as taxes by the Mayor and City Council of 6
Baltimore on all other property are paid; and 7
(ii) that portion of the taxes representing the levy on the tax 8
increment that would normally be paid to the Mayor and City Council of Baltimore shall 9
be paid into a special fund to be applied in accordance with the provisions of subsection (e) 10
of this section. This yield shall not be considered as municipal taxes for the purposes of any 11
constant yield tax limitation or State or local restriction. No State real property taxes may 12
be paid into the special fund. 13
(e) (1) The Mayor and City Council of Baltimore may enact an ordinance 14
creating a special fund described in subsection (d)(3)(ii) of this section with respect to a 15
development district, even though no bonds authorized by this section have been issued by 16
the Mayor and City Council of Baltimore OR AN AUTHORITY with respect to that 17
development district or are then outstanding. The taxes allocated to such special fund by 18
subsection (d)(3)(ii) of this section shall thereafter be paid over to such special fund, as long 19
as such ordinance remains in effect. 20
(2) When no bonds authorized by this section are outstanding with respect 21
to a development district and the Mayor and City Council of Baltimore by ordinance so 22
determines, moneys in the special fund for that development district created pursuant to 23
subsection (d)(3)(ii) of this section may be: 24
(i) used for any of the purposes described in subsection (c) of this 25
section; 26
(ii) accumulated for payment of debt service on bonds subsequently 27
issued under this section; 28
(iii) used to pay or to reimburse the Mayor and City Council of 29
Baltimore for debt service which the Mayor and City Council of Baltimore is obligated to 30
pay or has paid (whether such obligation is general or limited) on any bonds or State 31
obligations; or 32
(iv) paid to the Mayor and City Council of Baltimore to provide funds 33
to be used for any legal purpose as may be determined by the Mayor and City Council of 34
Baltimore OR AUTHORITY . 35
(3) When any bonds authorized by this section are outstanding with 36
respect to a development district and the Mayor and City Council of Baltimore so 37 SENATE BILL 409 27
determines, moneys in the special fund for that development district created pursuant to 1
subsection (d)(3)(ii) of this section may be used as provided in paragraph (2) of this 2
subsection in any fiscal year by the Mayor and City Council of Baltimore, but only to the 3
extent that: 4
(i) the amount in such special fund exceeds the unpaid debt service 5
payable on such bonds in such fiscal year and is not restricted so as to prohibit the use of 6
such moneys; and 7
(ii) such use is not prohibited by the ordinance of the Mayor and City 8
Council of Baltimore or resolution of the Board of Finance authorizing the issuance of such 9
bonds. 10
(f) (1) Before [issuing] any bonds ARE ISSUED under this section the Mayor 11
and City Council of Baltimore shall enact an ordinance which: 12
(i) specifies and describes the proposed undertaking and states that 13
it has complied with subsection (d) of this section; and 14
(ii) specifies the maximum principal amount of bonds to be issued, 15
from time to time or at any time, pursuant to such ordinance. 16
(h) (2) All bonds shall be signed manually or in facsimile by the Mayor of the 17
City of Baltimore OR THE AUTHORITY , and the seal of the Mayor and City Council of 18
Baltimore shall be impressed thereon manually or by facsimile and attested by the 19
custodian of the City seal, manually or by facsimile. If any officer whose signature or 20
countersignature appears on the bonds ceases to be such officer before delivery of the bonds, 21
his signature or countersignature shall nevertheless be valid and sufficient for all purposes 22
the same as if he had remained in office until delivery thereof. 23
(j) Whenever the Mayor and City Council of Baltimore OR THE AUTHORITY , as 24
lessor, leases its property within the development district, the property shall be assessed 25
and taxed in the same manner as privately owned property, and the lease or contract shall 26
provide that the lessee shall pay taxes or payments in lieu of taxes upon the assessed value 27
of the entire property and not merely the assessed value of the leasehold interest. 28
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 29
October 1, 2025. 30