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(a) In general. A board of directors must govern the district corporation.
(b) Membership.
(1) Subject to paragraph (2) of this subsection, the board of a district corporation consists of nine members, appointed by the members of the District.
(2) Appointment procedures.
(A) Until the first meeting of the board of directors, the entire board must consist of the 8 directors constituting the initial board of directors, as set forth in the district corporation’s articles of incorporation. Thereafter, the entire board must be comprised of 9 directors. After the initial members, the directors must be elected by the members. At the time of election, the Board must be comprised of:
(i) 3 representatives of an owner of property in the District assessed at more than $20 million;
(ii) 2 representatives of an owner of property in the District assessed at $20 million or less;
(iii) 1 representative of a business employing more than 50 full-time equivalent employees in the District; and
(iv) 3 representatives of a business employing 50 or less full-time equivalent employees in the District.
The Board must not include both an owner and a tenant of the same property in the District at the same time.
(B) The first election of directors by the members must be held within 120 days after the date this law takes effect. Subsequent elections must be held annually as provided in subparagraph C.
(C) The board must appoint a nominating committee, which must nominate a slate of candidates for each annual election. Members may nominate additional candidates at the meeting called for the purpose of electing directors. Members and persons other than members are eligible to become directors. Only directors may serve on a committee.
(i) Prior to the first election of directors, the nominating committee must nominate three slates of candidates: one slate to serve as the first class of directors for the term of 3 years; one slate to serve as the second class of directors for the term of 2 years and one slate to serve as the third class of directors for the term of 1 year. At the first election of directors, the members must hold a separate election to elect each class of directors.
(ii) At each annual election of directors thereafter, the successors to the class of directors whose term expires that year must be elected for the term of 3 years, so that the term of office of one class of directors expires in each year.
(iii) For each election of directors, each member may cast no more than their total number of votes for any one candidate. Directors must not be elected through cumulative voting.
(iv) Each director elected by the members must serve until his or her successor is elected, or until his or her earlier death, resignation or removal in accordance with the district’s bylaws.
(c) Chair; officers. From among its members, the board must elect a chair and other officers.
(d) Quorum.
(1) A majority of the voting members of the board is a quorum.
(2) The board may act on a resolution only by the affirmative vote of a majority of the voting members.
(e) Compensation; reimbursement for expenses. A member of the board:
(1) must not receive compensation as a member of the board; but
(2) may be reimbursed for expenses incurred in performing the member’s duties.
(f) Powers. The board must exercise its powers by resolution.
(g) Annual report. The board must file an annual report with the Executive and the Council that includes:
(1) a financial statement for the preceding year;
(2) a proposed operating budget for the current fiscal year;
(3) any proposed revisions to the business plan; and
(4) a narrative statement or chart showing the results of operations in comparison to stated goals and objectives. (2021 L.M.C., ch. 25, §1.)
(a) Earnings. The net earnings of the district corporation must benefit only the district corporation.
(b) Powers.
(1) Except as limited by its articles of incorporation, the district corporation has all the powers set forth in §§12-601 to 12-612 of the Economic Development Article of the Annotated Code of Maryland and this Chapter.
(2) A district corporation may:
(A) receive money from the County, the State, other governmental units, or nonprofit organizations;
(B) charge fees for its services;
(C) have employees and consultants as it considers necessary; and
(D) use the services of other governmental units.
(c) Use of powers. A district corporation must operate and exercise its powers solely to accomplish one or more of the legislative purposes of §§12-601 to 12-612 of the Economic Development Article of the Annotated Code of Maryland and this Chapter. (2021 L.M.C., ch. 25, §1.)
(a) Preliminary business improvement district tax roll. Within 10 days after the effective date of this law, the district corporation must provide the Executive and Council with a preliminary business improvement district tax roll.
(b) Imposition of business improvement district tax.
(1) The Council must impose a business improvement district tax to provide funds for the operation of the District.
(2) The Council must impose on members of the District the district tax at a rate specified by the board and approved by the Council.
(3) The tax imposed under this subsection must not count against the limits on the ad valorem weighted tax rate on real property in Section 305 of the County Charter.
(c) Collection. The district tax must be collected in the same manner as real property taxes are collected and distributed each quarter to the District.
(d) Reimbursement for collection costs. The district corporation must reimburse the County for the costs incurred in collecting the district tax.
(e) Miscellaneous Revenue. All other revenues collected by a business improvement district corporation, including charges for services and private contributions, must be used to benefit the district corporation. (2021 L.M.C., ch. 25, §1.)
(a) In general. The district corporation must provide public services and facilities in the District that are:
(1) primarily of benefit to the property and persons within the District rather than to the County as a whole; and
(2) in addition to services and facilities that the County provides generally.
(b) Services. The district corporation must provide services that include promoting and programming public interest activities that benefit both residential and commercial interests of the District (and which may incidentally benefit neighboring communities).
(c) Insurance. The district corporation must secure reasonable and appropriate insurance for its activities (2021 L.M.C., ch. 25, §1.)
(a) Expansion by the District. The District may expand the geographic area of the District if:
(1) a petition for inclusion is submitted from:
(A) owners of at least 51% interest in the assessed value of the nonexempt property and, subject to subsection (b) of this section, a designated board member of a condominium or cooperative housing corporation proposed for inclusion in the district; and
(B) owners of at least 51% of the total number of parcels of nonexempt property and, subject to subsection (b) of this section, a designated board member of a condominium or cooperative housing corporation proposed for inclusion in the district;
(2) the petition under paragraph (1) of this subsection is accepted by a majority vote of the board of the district corporation; and
(3) the appropriate documents, as applicable, are submitted under §12-608 of the Economic Development Article of the Annotated Code of Maryland and a hearing is held under §12-609 of the Economic Development Article.
(b) Expansion by condominium or cooperative housing corporation.
(1) Notwithstanding any other provision of this title and subject to paragraph (2) of this subsection, a condominium or cooperative housing corporation that is in the proposed expanded geographic area of the District may petition to join the expansion.
(2) A condominium or cooperative housing corporation described under paragraph (1) of this subsection may petition to join the expansion only if:
(A) the condominium or cooperative housing corporation is governed by a board;
(B) the board votes to join the district corporation; and
(C) the board has a representative member of the board sign the appropriate documents required under §12-608 of the Economic Development Article.
(3) For the purposes of the votes cast under subsection (a)(1):
(A) a condominium or cooperative housing corporation must be considered a single parcel; and
(B) the decision reached by the board must constitute the vote of the condominium or cooperative housing corporation. (2021 L.M.C., ch. 25, §1.)
(a) Review; development of procedures for evaluation. The Executive must:
(1) review the effectiveness and desirability of continuing the district every 3 years beginning from the time this Act takes effect;
(2) develop by method 2 regulation policies and procedures for evaluating the desirability of continuing the District; and
(3) recommend to the Council whether the District should continue.
(b) Effect of disapproval. If the Council adopts a resolution disapproving of the continuing existence of the District:
(1) the District must cease to exist as directed by the Council; and
(2) the district corporation must continue its existence only as long as necessary to terminate operation in a reasonable manner. (2021 L.M.C., ch. 25, §1.)