(A) To protect hotel rental tax revenue, the Director may require a hotel to file security with Frederick County in such amount as the Director believes necessary. Such security shall be:
(1) A bond issued by a surety company that is authorized to do business in the state and approved by the Maryland Insurance Commissioner as to solvency and responsibility;
(2) Cash; or
(3) Securities approved by the Director.
(B) If security is required, the Director shall notify the hotel of the amount of security required. Within five days after a hotel receives notice of the required security, the hotel shall:
(1) File the security; or
(2) Submit a written request for a hearing on the security requirement.
(C) If a hearing is requested, the Director shall hold a hearing to determine the necessity, propriety, and amount of the security. The determination of the Director, acting on behalf of Frederick County, is final, and the hotel shall comply within 15 days after the hotel receives notice of the determination.
(D) Without notice to a hotel that files security as required under this article, the Director at any time may:
(1) Apply the cash to the hotel rental tax due; or
(2) Sell the security and apply the proceeds of the sale to the hotel rental tax due.
(Ord. 04-11-355, 7-15-2004; Ord. 14-23-678, 11-13-2014)