Calvert County - Public Facilities Bonds

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[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.
*hb1513*

HOUSE BILL 1513
B3 6lr2947

By: Calvert County Delegation
Introduced and read first time: February 13, 2026
Assigned to: Appropriations
Committee Report: Favorable
House action: Adopted
Read second time: March 8, 2026

CHAPTER ______

AN ACT concerning 1

Calvert County – Public Facilities Bonds 2

FOR the purpose of authorizing and empowering the County Commissioners of Calvert 3
County, from time to time, to borrow not more than $80,957,080 to finance the 4
construction, improvement, or development of certain public buildings, roads, and 5
facilities in Calvert County, as herein defined, and to effect such borrowing by the 6
issuance and sale at public or private sale of its general obligation bonds in like par 7
amount; empowering the County to fix and determine, by resolution, the form, tenor, 8
interest rate or rates or method of determining the same, terms, conditions, 9
maturities, and all other details incident to the issuance and sale of the bonds ; 10
empowering the County to issue refunding bonds for the purchase or redemption of 11
bonds in advance of maturity; empowering and directing the County to levy, impose, 12
and collect, annually, ad valorem taxes in rate and amount sufficient to provide funds 13
for the payment of the maturing principal of and interest on the bonds; exempting 14
the bonds and refunding bonds and the interest thereon and any income derived 15
therefrom from all State, county, municipal, and other taxation in the State of 16
Maryland; providing that nothing in this Act shall prevent the County from 17
authorizing the issuance and sale of bonds the interest on which is not excludable 18
from gross income for federal income tax purposes; and generally relating to the 19
issuance and sale of such bonds. 20

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That, as used herein, the term “County” means the body politic and corporate of the State 22
of Maryland known as the County Commissioners of Calvert County, and the term 23
“construction, improvemen t, or development of public facilities” means the acquisition, 24
2 HOUSE BILL 1513

alteration, construction, reconstruction, enlargement, equipping, expansion, extension, 1
improvement, rehabilitation, renovation, upgrading, and repair of public buildings, roads, 2
and facilities, including but not limited to Calvert Pines Senior Center Renovations, and 3
existing storm drainage systems around the County, and issuance costs together with the 4
costs of acquiring land or interests in land as well as any related architectural, financial , 5
legal, planning, or engineering services. 6

SECTION 2. AND BE IT FURTHER ENACTED, That the County is hereby 7
authorized to finance any part or all of the costs of the public facilities described in Section 8
1 of this Act, and to borrow money and incur indebtedness for that purpose, at one time or 9
from time to time, in an amount not exceeding, in the aggregate, $80,957,080 and to 10
evidence such borrowing by the issuance and sale upon its full faith and credit of general 11
obligation bonds in like par amount, which may be issued at one time or from time to time, 12
in one or more groups or series, as the County may determine. 13

SECTION 3. AND BE IT FURTHER ENACTED, That the bonds shall be issued in 14
accordance with a resolution of the County, which shall describe generally the construction, 15
improvement, or development of public facilities for which the proceeds of the bond sale are 16
intended and the amount needed for those purposes. The County shall have and is hereby 17
granted full and complete authority and discretion in the resolution to fix and determine 18
with respect to the bonds of any issue: the designation, date of issue, denomination or 19
denominations, form or forms, and tenor of the bonds which, without limitation, may be 20
issued in registered form within the meaning of § 19–204 of the Local Government Article 21
of the Annotated Code of Maryland, as amended; the rate or rates of interest payable 22
thereon, or the method of determining the same, which may include a variable rate; the 23
date or dates and amount or amounts of maturity, which need not be in equal par amounts 24
or in consecutive annual installments, provided only that no bond of any issue shall mature 25
later than 30 years from the date of its issue; the manner of selling the bonds, which may 26
be at either public or private sale, for such price or prices as may be determined to be for 27
the best interests of Calvert County; the manner of executing and sealing the bonds, which 28
may be by facsimile; the terms and conditions, if any, under which bonds may be tendered 29
for payment or purchase prior to their stated maturity; the terms or conditions, if any, 30
under which bonds may or shall be redeemed prior to their stated maturity; the place or 31
places of payment of the principal of and the interest on the bonds, which may be at any 32
bank or trust company within or without the State of Maryland; covenants relating to 33
compliance with applicable requirements of federal income tax law, including (without 34
limitation) covenants regarding the payment of rebate or penalties in lieu of re bate; 35
covenants relating to compliance with applicable requirements of federal or state securities 36
laws; and generally all matters incident to the terms, conditions, issuance, sale, and 37
delivery thereof. 38

The bonds may be made redeemable before maturity, at the option of the County, at 39
such price or prices and under such terms and conditions as may be fixed by the County 40
prior to the issuance of the bonds, either in the resolution or in a bond order pursuant to 41
the bond resolution. The bonds may be issued in registered form and provision may be made 42
for the registration of the principal only. In case any officer whose signature appears on 43
any bond ceases to be such officer before the delivery thereof, such signature shall 44
HOUSE BILL 1513 3

nevertheless be valid and sufficien t for all purposes as if he had remained in office until 1
such delivery. The bonds and the issuance and sale thereof shall be exempt from the 2
provisions of §§ 19–205 and 19–206 of the Local Government Article of the Annotated Code 3
of Maryland, as amended. 4

The County may enter into agreements with agents, banks, fiduciaries, insurers, or 5
others for the purpose of enhancing the marketability of any security for the bonds and for 6
the purpose of securing any tender option that may be granted to holders of the bonds, all 7
as may be determined and presented in the aforesaid resolution, which may (but need not) 8
state as security for the performance by the County of any monetary obligations under such 9
agreements the same security given by the County to bondholders f or the performance by 10
the County of its monetary obligations under the bonds. 11

If the County determines in the resolution to offer any of the bonds by solicitation of 12
competitive bids at public sale, the resolution shall fix the terms and conditions of the public 13
sale and shall adopt a form of notice of sale, which shall outline the terms and conditions, 14
and a form of advertisement, which shall be published in one or more daily or weekly 15
newspapers having a general circulation in the County and which may also be published in 16
one or more journals having a circulation primarily among banks and investment bankers. 17
At least one publication of the advertisement shall be made not less than 10 days before 18
the sale of the bonds. 19

Upon delivery of any bonds to the purchaser or purchasers, payment therefor shall 20
be made to the Treasurer of Calvert County or such other official of Calvert County as may 21
be designated to receive such payment in a resolution passed by the County before such 22
delivery. 23

SECTION 4. AND BE IT FURTHER ENACTED, That the net proceeds of the sale 24
of bonds shall be used and applied exclusively and solely for the acquisition, construction, 25
improvement, or development of public facilities for which the bonds are sold. If the 26
amounts borrowed shall prove inadequate to finance the projects described in the 27
resolution, the County may issue additional bonds with the limitations hereof for the 28
purpose of evidencing the borrowing of additional funds for such financing, provided the 29
resolution authorizing the sale of additional bonds shall so recite, but if the net proceeds of 30
the sale of any issue of bonds exceed the amount needed to finance the projects described 31
in the resolution, the excess funds so borrowed and not expended shall be applied to the 32
payment of the next principal maturity of the bonds or to the redemption of any part of the 33
bonds which have been made redeemable or to the purchase and cancellation of bonds, 34
unless the County shall adopt a resolution allocating the excess funds to the acqui sition, 35
construction, improvement, or development of other public facilities, as defined and within 36
the limits set forth in this Act. 37

SECTION 5. AND BE IT FURTHER ENACTED, That the bonds hereby authorized 38
shall constitute, and they shall so recite, an ir revocable pledge of the full faith and credit 39
and unlimited taxing power of the County to the payment of the maturing principal of and 40
interest on the bonds as and when they become payable. In each and every fiscal year that 41
any of the bonds are outstandin g, the County shall levy or cause to be levied ad valorem 42
4 HOUSE BILL 1513

taxes upon all the assessable property within the corporate limits of the County in rate and 1
amount sufficient to provide for or assure the payment, when due, of the principal of and 2
interest on all the bonds maturing in each such fiscal year and, in the event the proceeds 3
from the taxes so levied in any such fiscal year shall prove inadequate for such payment, 4
additional taxes shall be levied in the succeeding fiscal year to make up any such deficiency. 5
The County may apply to the payment of the principal of and interest on any bonds issued 6
hereunder any funds received by it from the State of Maryland, the United States of 7
America, any agency or instrumentality thereof, or from any other source, if such funds are 8
granted for the purpose of assisting the County in financing the acquisition, construction, 9
improvement, or development of the public facilities defined in this Act and, to the extent 10
of any such funds received or receivable in any fiscal year, the taxes that are required to be 11
levied may be reduced accordingly. 12

SECTION 6. AND BE IT FURTHER ENACTED, That the County is further 13
authorized and empowered, at any time and from time to time, to issue its bonds in the 14
manner hereinabove described f or the purpose of refunding, by payment at maturity or 15
upon purchase or redemption, any bonds issued hereunder. The validity of any such 16
refunding bonds shall in no way be dependent upon or related to the validity or invalidity 17
of the obligations so refund ed. The powers herein granted with respect to the issuance of 18
bonds shall be applicable to the issuance of refunding bonds. Such refunding bonds may be 19
issued by the County in such an amount as shall be necessary for the purpose of providing 20
it with funds to pay any of its outstanding bonds issued hereunder at maturity, for the 21
purpose of providing it with funds to purchase in the open market any of its outstanding 22
bonds issued hereunder, prior to the maturity thereof, or for the purpose of providing it 23
with funds for the redemption prior to maturity of any outstanding bonds issued hereunder 24
which are, by their terms, redeemable, for the purpose of providing it with funds to pay 25
interest on any outstanding bonds issued hereunder prior to their payment at mat urity of 26
purchase or redemption in advance of maturity, or for the purpose of providing it with funds 27
to pay any redemption or purchase premium in connection with the refunding of any of its 28
outstanding bonds issued hereunder. The proceeds of the sale of any such refunding bonds 29
shall be segregated and set apart by the County as a separate trust fund to be used solely 30
for the purpose of paying the purchase or redemption prices of the bonds to be refunded. 31

SECTION 7. AND BE IT FURTHER ENACTED, That the County may, prior to the 32
preparation of definitive bonds, issue interim certificates or temporary bonds, exchangeable 33
for definitive bonds when such bonds have been executed and are available for such 34
delivery, provided, however, that any such interim certificates or temporary bonds shall be 35
issued in all respects subject to the restrictions and requirements set forth in this Act. The 36
County may, by appropriate resolution, provide for the replacement of any bonds issued 37
hereunder which shall have become mutila ted or lost or destroyed upon such conditions 38
and after receiving such indemnity as the County may require. 39

SECTION 8. AND BE IT FURTHER ENACTED, That any and all obligations issued 40
pursuant to the authority of this Act, their transfer, the interest payable thereon, and any 41
income derived therefrom in the hands of the holders thereof from time to time (including 42
any profit made in the sale thereof) shall be and are hereby declared to be at all times 43
exempt from State, county, municipal, or other taxation of every kind and nature 44
HOUSE BILL 1513 5

whatsoever within the State of Maryland. Nothing in this Act shall prevent the County 1
from authorizing the issuance and sale of bonds the interest on which is not excludable 2
from gross income for federal income tax purposes. 3

SECTION 9. AND BE IT FURTHER ENACTED, That the authority to borrow 4
money and issue bonds conferred on the County by this Act shall be deemed to provide an 5
additional and alternative authority for borrowing money and shall be regarded as 6
supplemental and additional to powers conferred upon the County by other laws and shall 7
not be regarded as in derogation of any power now existing; and all Acts of the General 8
Assembly of Maryland heretofore passed authorizing the County to borrow money are 9
hereby continued to t he extent that the powers contained in such Acts have not been 10
exercised, and nothing contained in this Act may be construed to impair, in any way, the 11
validity of any bonds that may have been issued by the County under the authority of any 12
said Acts, and the validity of the bonds is hereby ratified, confirmed, and approved. This 13
Act, being necessary for the welfare of the inhabitants of Calvert County, shall be liberally 14
construed to effect the purposes hereof. All Acts and parts of Acts inconsistent with the 15
provisions of this Act are hereby repealed to the extent of such inconsistency. 16

SECTION 10. AND BE IT FURTHER ENACTED, That this Act shall take effect 17
June 1, 2026. 18

Approved:
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Governor.
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Speaker of the House of Delegates.
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President of the Senate.