1416                              LAWS OF MARYLAND                       [CH. 869

317-76. Police—

The Board is authorized to employ watchmen, guards and in-
vestigators as it may deem necessary for the protection of its prop-
erties, personnel and passengers and such employees, when author-
ized by any jurisdiction within the Zone, may serve as special police
officers in any such jurisdiction. Nothing contained herein shall
relieve any signatory or political subdivision or agency thereof from
its duty to provide police service and protection or to limit, restrict
or interfere with the jurisdiction of or performance of duties by the
existing police and law enforcement agencies.

317-77. Exemption from Regulation—

Except as otherwise provided in this Title, any transit service
rendered by transit facilities owned OR CONTROLLED by the Au-
thority and the Authority or any corporation, firm or association per-
forming such transit service pursuant to an operating contract with
the Authority, shall , IN CONNECTION WITH THE PERFORM-
ANCE OF SUCH SERVICE, be exempt from all laws, rules, regula-
tions and orders of the signatories and of the United States otherwise
applicable to such transit service and persons, except that laws, rules,
regulations and orders relating to inspection of equipment and facili-
ties, safety and testing shall remain in force and effect; provided,
however, that the Board may promulgate regulations for the safety
of the public and employees not inconsistent with the applicable laws,
rules, regulations or orders of the signatories and of the United States.

317-78. Tax Exemption—

It is hereby declared that the creation of the Authority and the
carrying out of the corporate purposes of the Authority is in all
respects for the benefit of the people of the signatory states and is
for a public purpose and that the Authority and the Board will be
performing an essential governmental function, including, without
limitation, proprietary, governmental and other functions, in the
exercise of the powers conferred by this Title. Accordingly, the
Authority and the Board shall not be required to pay taxes or assess-
ments upon any of the property acquired by it or under its jurisdic-
tion, control, possession or supervision or upon its activities in the
operation and maintenance of any transit facilities or upon any
revenues therefrom and the property and income derived therefrom
shall be exempt from all Federal, State, District of Columbia, munic-
ipal and local taxation. This exemption shall include, without limita-
tion, all motor vehicle license fees, sales taxes and motor fuel taxes.

317-79. Free Transportation and School Fares—

All laws of the signatories with respect to free transportation
and school fares shall be applicable to transit service rendered by
facilities owned OR CONTROLLED by the Authority.

317-80. Liability for Contracts and Torts—

The Authority shall be liable for its contracts and for its torts and
those of its Directors, officers, employees and agents committed in
the conduct of any proprietary function, in accordance with the law
of the applicable signatory (including rules on conflict of laws), but