2013 Maryland Code
NATURAL RESOURCES
§ 3-122 - Bonds or notes not to be deemed State or local debt; fees or charges to pay project costs; contracts with counties or municipal corporations [Effective until October 1, 2013].

§3-122.

(a) Bonds or notes issued under the provisions of this subtitle shall not be deemed to constitute or create a debt or a pledge of the faith and credit of the State or of any political subdivision. Every bond or note shall contain on its face a statement to the effect that neither the Service, the State, nor any political subdivision thereof is obligated to pay it or the interest thereon except from revenues or other money of the Service available therefor and that neither the faith and credit nor the taxing power of the State or any political subdivision is pledged to the payment of the principal of or the interest on the bonds or notes. However, this subsection does not limit the ability of the State or a political subdivision to set, impose, or collect an assessment, rate, fee, or charge to pay to the Service the cost of a project, including the principal of and interest on a bond or note, under an agreement between the Service and the State or political subdivision.

(b) (1) Notwithstanding any limitations or other provisions to the contrary of Article 23A, Article 25A, or Article 25B of the Code, or of any charter or local law regulating the creation of public debts, a municipality may enter into contracts with the Service for the purpose of defraying the Service’s costs of acquiring or providing a solid waste disposal project, wastewater purification project, water supply project, or energy project, which costs may include debt service requirements of the Service relating to that project. These contracts shall not be deemed to constitute or create a debt of the municipality or a pledge of its faith or credit within the meaning of any of these limitations or other provisions. Such a solid waste disposal project, wastewater purification project, water supply project, or energy project may not be deemed to be a capital project of the municipality within the meaning of any of these limitations or other provisions, and a resolution, ordinance, or other official action authorizing such contracts is not subject to referendum or other procedure not applicable to all ordinances or resolutions enacted by the municipality. For the purposes of this subsection, the express powers contained and enumerated in Articles 23A, 25A, and 25B of the Code and in the Charter of the City of Baltimore are deemed to incorporate and include the power and authority contained in this subsection.

(2) (i) A county or municipal corporation may limit its obligations under contracts with the Service to a specific source of funds including revenues of its publicly operated or publicly contracted solid waste collection or disposal system.

(ii) The governing body of a county or municipal corporation may, by ordinance or resolution, impose reasonable rates and charges for publicly operated or publicly contracted solid waste collection, treatment, or disposal sufficient to defray expenses of its publicly operated or publicly contracted solid waste collection, treatment, or disposal system, including amounts due under a contract with the Service and the funding of reserves.

(iii) The ordinance or resolution may establish a reasonable basis for setting the rates and charges, and a schedule of rates and charges, and may designate solid waste collection, treatment, or disposal service areas within the county or municipal corporation, provided the county or municipal corporation is operating its own collection, treatment, or disposal service or has contracted out those services.

(iv) The ordinance or resolution may provide that the rates and charges are chargeable against all or part of the occupied lots or parcels of land in the county or municipal corporation or in service areas established by the county or municipal corporation and constitute a first lien on such property and may establish reasonable times and methods for collection of the rates or charges, which may be levied and collected and have the same priority and rights and bear the same interest and penalties and in every respect be treated the same as taxes of the county or municipal corporation.

(v) The county or municipal corporation may modify the amount of the rates and charges by a resolution of its governing body or by other action authorized by the ordinance or resolution imposing the rates and charges.

(vi) Before setting or modifying the rates and charges, the county or municipal corporation shall give notice of the proposed rates or charges in at least one newspaper of general circulation in the county or municipal corporation and hold a public hearing on the necessity or advisability of the proposed rates or charges.

(vii) The county or municipal corporation may enter into a rate covenant with the Service specifying the level of these rates and charges, the covenants described in § 3-104(m) of this subtitle, and other covenants of the county or municipal corporation to provide solid waste collection, treatment, or disposal service and assure that sufficient revenues are available to provide for the payments due under the contract.

(viii) The powers granted by this section are in addition to other powers of a county or municipal corporation granted under law and may not be restricted by any debt or tax rate limitation in any general law, local law, or charter provision.

(ix) Rates and charges imposed under this section are not subject to the jurisdiction of any entity other than the Service or the contracting municipality.

(3) Any contract between the Service and a municipality shall be valid, binding, and enforceable against the municipality if it is approved by resolution of the governing body of the municipality.

(4) A county or municipal corporation may exercise the powers granted under this section notwithstanding any limitations or other provisions to the contrary of Article 23A, Article 25A, or Article 25B of the Code or of any charter or local law.

§ 3-122 - Bonds or notes not to be deemed State or local debt; fees or charges to pay project costs; contracts with counties or municipal corporations [Effective October 1, 2013].

(a) Bonds or notes not to be deemed State or local debt; fees or charges to pay project costs. -- Bonds or notes issued under the provisions of this subtitle shall not be deemed to constitute or create a debt or a pledge of the faith and credit of the State or of any political subdivision. Every bond or note shall contain on its face a statement to the effect that neither the Service, the State, nor any political subdivision thereof is obligated to pay it or the interest thereon except from revenues or other money of the Service available therefor and that neither the faith and credit nor the taxing power of the State or any political subdivision is pledged to the payment of the principal of or the interest on the bonds or notes. However, this subsection does not limit the ability of the State or a political subdivision to set, impose, or collect an assessment, rate, fee, or charge to pay to the Service the cost of a project, including the principal of and interest on a bond or note, under an agreement between the Service and the State or political subdivision.

(b) Contracts with counties or municipal corporations. --

(1) Notwithstanding any limitations or other provisions to the contrary of Division II, Title 9, Subtitle 2 or Subtitle 3, Title 10, or Title 11 of the Local Government Article, or of any charter or local law regulating the creation of public debts, a municipality may enter into contracts with the Service for the purpose of defraying the Service's costs of acquiring or providing a solid waste disposal project, wastewater purification project, water supply project, or energy project, which costs may include debt service requirements of the Service relating to that project. These contracts shall not be deemed to constitute or create a debt of the municipality or a pledge of its faith or credit within the meaning of any of these limitations or other provisions. Such a solid waste disposal project, wastewater purification project, water supply project, or energy project may not be deemed to be a capital project of the municipality within the meaning of any of these limitations or other provisions, and a resolution, ordinance, or other official action authorizing such contracts is not subject to referendum or other procedure not applicable to all ordinances or resolutions enacted by the municipality. For the purposes of this subsection, the express powers contained and enumerated in Division II and Title 10 of the Local Government Article and in the Charter of the City of Baltimore are deemed to incorporate and include the power and authority contained in this subsection.

(2) (i) A county or municipal corporation may limit its obligations under contracts with the Service to a specific source of funds including revenues of its publicly operated or publicly contracted solid waste collection or disposal system.

(ii) The governing body of a county or municipal corporation may, by ordinance or resolution, impose reasonable rates and charges for publicly operated or publicly contracted solid waste collection, treatment, or disposal sufficient to defray expenses of its publicly operated or publicly contracted solid waste collection, treatment, or disposal system, including amounts due under a contract with the Service and the funding of reserves.

(iii) The ordinance or resolution may establish a reasonable basis for setting the rates and charges, and a schedule of rates and charges, and may designate solid waste collection, treatment, or disposal service areas within the county or municipal corporation, provided the county or municipal corporation is operating its own collection, treatment, or disposal service or has contracted out those services.

(iv) The ordinance or resolution may provide that the rates and charges are chargeable against all or part of the occupied lots or parcels of land in the county or municipal corporation or in service areas established by the county or municipal corporation and constitute a first lien on such property and may establish reasonable times and methods for collection of the rates or charges, which may be levied and collected and have the same priority and rights and bear the same interest and penalties and in every respect be treated the same as taxes of the county or municipal corporation.

(v) The county or municipal corporation may modify the amount of the rates and charges by a resolution of its governing body or by other action authorized by the ordinance or resolution imposing the rates and charges.

(vi) Before setting or modifying the rates and charges, the county or municipal corporation shall give notice of the proposed rates or charges in at least one newspaper of general circulation in the county or municipal corporation and hold a public hearing on the necessity or advisability of the proposed rates or charges.

(vii) The county or municipal corporation may enter into a rate covenant with the Service specifying the level of these rates and charges, the covenants described in § 3-104(m) of this subtitle, and other covenants of the county or municipal corporation to provide solid waste collection, treatment, or disposal service and assure that sufficient revenues are available to provide for the payments due under the contract.

(viii) The powers granted by this section are in addition to other powers of a county or municipal corporation granted under law and may not be restricted by any debt or tax rate limitation in any general law, local law, or charter provision.

(ix) Rates and charges imposed under this section are not subject to the jurisdiction of any entity other than the Service or the contracting municipality.

(3) Any contract between the Service and a municipality shall be valid, binding, and enforceable against the municipality if it is approved by resolution of the governing body of the municipality.

(4) A county or municipal corporation may exercise the powers granted under this section notwithstanding any limitations or other provisions to the contrary of Division II, Title 9, Subtitle 2 or Subtitle 3, Title 10, or Title 11 of the Local Government Article or of any charter or local law.