PARRIS N. GLENDENING, Governor                             Ch. 640

(4) REVENUES FROM THE ISSUER FEE MAY ONLY BE USED FOR THE
PURPOSES AND IN THE MANNER SPECIFIED IN THIS SUBTITLE.

(C)     (1) AN ISSUER FEE MAY NOT EXCEED:

(I)      FOR REVENUE BONDS PROVIDING INITIAL FINANCING, AN
AMOUNT EQUAL TO 1/8 OF 1% PER ANNUM OF THE OUTSTANDING PRINCIPAL
BALANCE OF THE BONDS (NOT TO EXCEED $10,000,000), DISCOUNTED AT THE BOND
YIELD TO THE DATE OF ISSUE OF THE BONDS; OR

(II)     FOR REVENUE BONDS USED TO REFUND EXISTING REVENUE
BONDS, 1/4 OF 1% OF THE PRINCIPAL AMOUNT OF THE BONDS.

(2) THE ISSUER FEE MAY NOT EXCEED AN AMOUNT THAT IS IN EXCESS
OF THE AMOUNT ALLOWED UNDER THE ARBITRAGE LIMITATIONS UNDER THE
INTERNAL REVENUE CODE AND REGULATIONS ADOPTED UNDER THE INTERNAL
REVENUE CODE

(D)    IF THE COUNTY ESTABLISHES AN ISSUER FEE, THE DIRECTOR OF
FINANCE SHALL PLACE ALL REVENUE COLLECTED THROUGH THE FEE IN THE
ECONOMIC DEVELOPMENT INCENTIVE FUND.

26.301.

(A)    IF THE COUNTY ESTABLISHES AN ISSUER FEE UNDER § 26.300 OF THIS
SUBTITLE, THERE IS ESTABLISHED A NONREVERTING SPECIAL REVENUE FUND
KNOWN AS THE ECONOMIC DEVELOPMENT INCENTIVE FUND.

(B)     THE ECONOMIC DEVELOPMENT INCENTIVE FUND CONSISTS OF:

(1)     ISSUER FEES ESTABLISHED UNDER § 26.300 OF THIS SUBTITLE; AND

(2)     OTHER MONEY APPROPRIATED TO THE FUND THROUGH THE
COUNTY'S BUDGETARY PROCESS.

(C)     THE ECONOMIC DEVELOPMENT INCENTIVE FUND MAY BE USED:

(1)     TO RETAIN, EXPAND, OR RELOCATE EXISTING BUSINESSES IN THE
COUNTY; AND

(2)     FOR PURPOSES CONSISTENT WITH ITEM (1) OF THIS SUBSECTION, AS
PART OF A MATCHING REQUIREMENT TO OBTAIN FUNDING OR FINANCING FROM A
STATE AGENCY OR ENTITY AFFILIATED WITH STATE GOVERNMENT.

(D)    HOWARD COUNTY MAY ENACT A LOCAL LAW TO ADMINISTER THE USE
OF MONEY FROM THE ECONOMIC DEVELOPMENT INCENTIVE FUND.

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
July 1, 1996.

Approved May 23, 1996.

- 3651 -