WILLIAM DONALD SCHAEFER, Governor                     Ch. 365

sold as part of a single issue of bonds under § 8-122 of the
State Finance and Procurement Article.

(3) The cash proceeds of the sale of the bonds shall be
paid to the Treasurer and first shall be applied to the payment
of the expenses of issuing, selling, and delivering the bonds,
unless funds for this purpose are otherwise provided, and then
shall be credited on the books of the Comptroller and expended,
on approval by the Board of Public Works, for the following
public purposes, including any applicable architects' and
engineers' fees: to provide State funds in accordance with §§
8-1105.2 and 8-1105.3 of the Natural Resources Article for the
construction of a beach replenishment project for the Town of
Ocean City. None of the proceeds of the sale of bonds may be
used for these purposes until at least an equal amount has been
expended from Program 23.05.02.01 of Fiscal Year 1988 Capital
Appropriations for the same purpose.

(4) State funds allocated under this Act may not be
expended for purchase of any interest in property and may not be
expended until substantially all easements necessary to complete
both phases of this project have been obtained. Upon attainment

of substantially all easements, the Department of Natural

Resources may proceed with Phase I of this project. However, no
funds may be expended for Phase II of this project until the
Department of Natural Resources reports to the budget committees
on the final status of the voluntary easement program and the
budget committees release the funds. It is the intent of the
General Assembly that neither the State nor local governments
purchase easements. However, if local governments fund the
purchase of any easements, such local expenditures shall not be
included as a portion of any local government match required to
complete both phases of this project.

(4) (5) (4) An annual State tax is imposed on all
assessable property in the State in rate and amount sufficient to
pay the principal of and interest on the bonds, as and when due
and until paid in full. The principal shall be discharged within
15 years after the date of issue of the bonds.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall
take effect June 1, 1987.

Approved May 14, 1987.

- 1967 -