MARVIN MANDEL, Governor                                       509

1, section 8 wherein reference to the
singular is deemed to include the plural
unless the context is unreasonable.

(B)    PREPARATION AND CONTENTS OF CONTRACTS;
ESTABLISHMENT OF DISTRICT AND OPERATION OF

PROJECTS AS SOON AS POSSIBLE AFTER RECEIPT OF A DULY

AUTHORIZED REQUEST FROM A MUNICIPALITY OR PERSON, THE
SERVICE SHALL DRAFT A PROPOSED CONTRACT WITH THE
MUNICIPALITY OR PERSON IN ACCORDANCE WITH THE
PROVISIONS OF THIS SUBTITLE SPECIFYING THE TYPE OF
PROJECT TO BE PROVIDED, THE BOUNDARIES OF A SERVICE
DISTRICT, THE EFFECTIVE DATE THE SERVICE DISTRICT WILL
COME INTO EXISTENCE, AND THE TERMS, CONDITIONS, AND
COSTS UNDER WHICH THE PROJECT WOULD BE PROVIDED. UPON
EXECUTION OF THE CONTRACT, THE SERVICE AS SOON AS
POSSIBLE SHALL ESTABLISH A SERVICE DISTRICT AND
PROVIDE, MAINTAIN, AND OPERATE THE NECESSARY PROJECT.

REVISOR'S NOTE: This subsection is new language
derived from Article 33B, section 6(b) of
the Code. The reference to "or projects"
is proposed for deletion in light of
Article 1, section 8 wherein reference to
the singular is deemed to include the
plural unless the context is unreasonable.

(C)   REDUCTION OF [[COST]] CHARGES LEVIED AGAINST
DISTRICT BY AMOUNT OF GRANTS.— THE [[COST]] CHARGES
LEVIED AGAINST A SERVICE DISTRICT SHALL BE REDUCED BY
THE FULL AMOUNT OF FEDERAL AND STATE GRANTS WHICH THE
SERVICE RECEIVES AND IS ENTITLED TO RETAIN TO DEFRAY
THE COST OF ANY PROJECT WITHIN THE SERVICE DISTRICT.

REVISOR'S NOTE: This subsection is new language
derived from Article 33B, section 6(c) of
the Code.

(D)   TRANSFER OF EXISTING FACILITIES TO SERVICE;

COMPENSATION FOR EXISTING PROJECTS.--EXISTING

FACILITIES PROVIDING SERVICE OF THE TYPE REQUESTED,
INCLUDING ALL RIGHTS, EASEMENTS, LABORATORY
FACILITIES, VEHICLES, RECORDS, AND ALL OTHER PROPERTY,
EQUIPMENT, AND FURNISHINGS NECESSARY AND NORMALLY
ASSOCIATED WITH THE OPERATION OF THE FACILITY, SHALL
BE TRANSFERRED TO THE SOLE OWNERSHIP OF THE SERVICE ON
THE DATE THE SERVICE DISTRICT COMES INTO EXISTENCE.
COHPENSATION FOR EXISTING PROJECTS MAY BE BASED ON THE
ORIGINAL COST OF THE PROJECT MINUS AN ALLOWANCE FOR
DEPRECIATION, OR ON OTHER TERMS AND CONDITIONS
SATISFACTORY TO THE MUNICIPALITY OR PERSON