Maryland Governor - Executive and Administrative Departments Section 14-103
§ 14-103.
(a) In order to accomplish the legislative policy set forth in § 14-102 of this subtitle, the legislative body of any county or municipality may adopt a resolution which creates an industrial development authority. The resolution and any resolution adopted pursuant to subsection (d) or (k) of this section, is deemed to be administrative in nature and not subject to referendum and, except in a county or municipality that does not have a publicly elected chief executive officer, shall be subject to approval of the chief executive officer. The resolution shall include proposed articles of incorporation of the authority that state:
(1) The name of the authority, which shall be "Industrial Development Authority of (here insert the name of the incorporating county or municipality)";
(2) The authority is formed under this subtitle;
(3) The names, addresses, and terms of office of the first directors of the authority;
(4) The location of the principal office of the authority;
(5) The purposes for which the authority is formed; and
(6) The powers of the authority, subject to the restrictions or limitations on the powers of the authority set forth in subsections (g), (h), (j), and (k) of this section.
(b) This provision is self-executing and fully authorizes any county or municipality to create an authority, and, notwithstanding any other statutory or charter provision, no further charter amendment or enabling legislation, ordinance, bill, or other similar action need be taken by the legislative body of any county or municipality to implement the authority conferred hereby, other than the adoption of the administrative resolution referred to in this section.
(c) (1) The chief executive officer of the incorporating county or municipality, or any other official designated in the administrative resolution referred to in subsection (a) of this section, shall execute and file the articles of incorporation with the State Department of Assessments and Taxation.
(2) When the Department receives the articles, it shall stamp them with the time and date of receipt.
(3) If the Department determines that the articles are in accordance with law, it shall endorse the articles "approved" and issue a certificate of approval attached to the endorsed articles.
(4) When the Department issues the certificate of approval, the authority becomes a body politic and corporate and an instrumentality of the county or municipality creating it, and is conclusively considered to have been lawfully and properly created and authorized to exercise its powers.
(d) The incorporating county or municipality, by administrative resolution, adopted as provided in subsection (a) of this section, may adopt amendments to the articles of incorporation, which may contain any provisions that lawfully may be contained in articles of incorporation at the time of the amendment. The amendments shall be filed with the State Department of Assessments and Taxation. If the Department approves the amendments as to form, it shall endorse them "approved", and issue a certificate of approval of the amendments. When the Department issues the certificate of approval, the amendments are effective and are conclusively considered to have been lawfully and properly adopted.
(e) The Department shall record endorsed articles of incorporation and amendments in records kept for that purpose.
(f) (1) (i) An authority shall be created and operated, and its powers exercised, solely to accomplish 1 or more of the legislative purposes set forth in this subtitle.
(ii) The incorporating county or municipality may utilize the authority's exercise of its powers to accomplish 1 or more of the legislative purposes.
(2) (i) An authority or incorporating county or municipality may exercise its powers irrespective of any effect on economic competition.
(ii) The powers granted to the county or municipality pursuant to this paragraph shall not be construed:
1. To grant to the county or municipality powers in any substantive area not otherwise granted to the county or municipality by other public general or public local law;
2. To restrict the county or municipality from exercising any power granted to the county or municipality by other public general or public local law or otherwise;
3. To authorize the county or municipality or its officers to engage in any activity which is beyond their power under other public general law, public local law, or otherwise; or
4. To preempt or supersede the regulatory authority of any State department or agency under any public general law.
(g) (1) Except as restricted or limited in its articles of incorporation, an authority has all powers enumerated in this subtitle, but the incorporating county or municipality is not precluded from directly exercising the powers conferred by this subtitle after the creation of an authority.
(2) The board of directors governs the authority and exercises its powers by resolution.
(3) Three voting directors constitute a quorum; however, the board may not act upon a resolution except by the affirmative vote of at least 3 voting directors.
(4) Except as provided in this subtitle or the resolution creating an authority, the procedures of the incorporating county or municipality control any matter relating to the internal administration of the authority.
(h) (1) The board of directors of an authority consists of the 5 members appointed by the legislative body of the incorporating county or municipality. Nominations shall be submitted by the county's or municipality's chief executive officer, except in a county or municipality that does not have a publicly elected chief executive officer. The chief executive officer may nominate 1 or more individuals for any vacancy on the board of directors, including the original 5 members, but is not required to nominate more than 1 individual for any vacancy.
(2) Appointment procedures shall be provided in the resolution creating the authority.
(3) The original 5 members of the board of directors shall be appointed for terms of from 1 to 5 years, respectively, commencing from the date of creation of the authority. Except as provided for original members, each serves a 5 year term and until his successor is appointed. A member appointed to fill a vacancy serves for the remainder of the unexpired term. A member may succeed himself.
(4) An officer or employee of the incorporating county or municipality may not be a director, but if so provided by resolution, he may be an ex officio, nonvoting member of the authority.
(5) The board shall elect from its membership a chairman and other officers. An ex officio member may hold any office other than chairman.
(6) A director shall not receive compensation, but shall be reimbursed for actual expenses incurred in the performance of his duties.
(7) A director may be removed at any time with or without cause. Procedures for removal shall be those provided in the resolution creating the authority or any subsequent resolution.
(i) An authority may:
(1) Receive funds from its incorporating county or municipality, the State, any other governmental unit, or any nonprofit organization;
(2) Charge fees or other charges for its services;
(3) Have employees and consultants as it considers necessary; and
(4) Utilize the services of other governmental units.
(j) The net earnings of an authority, aside from those necessary to pay debt service or to implement the public purposes or programs of the incorporating county or municipality, may not inure to the benefit of any person other than the incorporating county or municipality.
(k) The incorporating county or municipality, in its sole discretion, subject to the provisions of this section and to any limitations imposed by law upon the impairment of contracts, may by resolution adopted at any time provide for or change the structure, organization, procedures, programs, or activities of the authority, or terminate the authority. Except in a county or municipality that does not have a publicly elected chief executive officer, the resolution is subject to the approval of the chief executive officer. Upon termination of an authority, title to all its property shall vest in the incorporating county or municipality and all obligations and assets of the authority shall be transferred to and assumed by the municipality or county.
(l) For the purposes of this subtitle, each county and municipality is deemed to have all of the powers and discretion granted in this section to industrial development authorities, including the power to make loans to private enterprises engaged in competition with enterprises not receiving the loans.
