J. MILLARD TAWES, GOVERNOR                          1265

cifically required by this sub-title. In the event the Commission shall
determine to sell any bonds of the District authorized by this sub-
title at public sale, it shall comply with the provisions of Section 10
of Article 31 of the Annotated Code of Maryland (1957 Edition) as
amended, but in all other respects the provisions of Sections 9 to
11, inclusive, of said Article shall not apply to bonds issued under
this sub-title. If the Commission shall provide for the execution of
any such bonds in facsimile, it shall comply with the provisions of
Sections 13 to 18, inclusive, of said Article. All bond proceeds, as
well as all moneys held in sinking or reserve funds in the name of
the District shall be invested by the Commission in the manner
prescribed by Section 22 of Article 95 of the Annotated Code of
Maryland (1957 Edition).

SEC. 8. And be it further enacted, That Sections 537, 538, 539,
540, 541 and 542 of the Code of Public Local Laws of Washington
County (1957 Edition), being Article 22 of the Code of Public Local
Laws of Maryland, title "Washington County", subtitle "Sanitary
Districts", as said Sections were enacted by Chapter 694 of the Laws
of Maryland of 1957, be, and the same are hereby, repealed and
re-enacted, with amendments, to read as follows:

537.  Tax Exemption.

[No] The District shall not be required to pay any taxes or assess-
ments upon any project acquired, constructed or operated by it,
under the provisions of this sub-title, or upon the income therefrom,
and the bonds issued under the provisions of this sub-title, their
transfer and the income therefrom (including any profit made on the
sale thereof by any person other than the initial purchaser thereof)
shall at all times be free from taxation by the State of Maryland or
any of its political subdivisions, or by any town or incorporated
municipality or any other public agency within the State.

538.  Bids; Contracts.

[Whenever the plans and specifications for water supply, sewerage
or drainage systems for any sanitary district shall have been com-
pleted and the Commission shall have decided, after opportunity for
a hearing has been given, to proceed with the construction thereof,
it shall advertise, by notice in one newspaper published, or of general
circulation, in the county where the district is located and such news-
papers and technical press as it may deem proper, for bids for the
construction of said system or systems, in part or as a whole, as in
its judgment may appear advisable. The contract shall be let to the
lowest responsible bidder, or the Commission may reject any and all
bids, and, if in its discretion the prices quoted are unreasonable or
unbalanced, it may re-advertise the work or any part of it or may
do any part or all of the work by day labor; provided that at any
time the Commission may, in its discretion, expend for construction
work including day labor, materials and equipment, an amount not
exceeding Five Thousand Dollars ($5,000.00) without advertising
or receiving bids. All such contracts shall be protected by such bonds,
penalties and conditions as the Commission may require, all of which
shall be enforced in any court having jurisdiction.]

Except as permitted by this Section, the Commission shall, before
proceeding with construction of any project or projects in a sub-