ROBERT L. EHRLICH, JR., Governor

Ch. 307

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Education

4-114.

(a)     All property granted, conveyed, devised, or bequeathed for the use of a
particular public school or school system:

(1)     [Shall] EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION,
SHALL be held in trust for the benefit of the school or school system by the
appropriate county board; and

(2)     Is exempt from all State and local taxes.

(b)     Money invested in trust for the benefit of the public schools for any county
or city is exempt from all State and local taxes.

(C) (1) A PRIVATE ENTITY MAY HOLD TITLE TO PROPERTY USED FOR A
PARTICULAR PUBLIC SCHOOL OR LOCAL SCHOOL SYSTEM IF THE PRIVATE ENTITY IS
CONTRACTUALLY OBLIGATED TO TRANSFER TITLE TO THE APPROPRIATE COUNTY
BOARD ON A SPECIFIED DATE.

(2)  THE CONVEYANCE OF TITLE OF SCHOOL PROPERTY TO A PRIVATE
ENTITY FOR A SPECIFIED TERM UNDER THIS SUBSECTION MAY NOT BE CONSTRUED
TO PROHIBIT THE ALLOCATION OF CONSTRUCTION FUNDS TO AN APPROVED
SCHOOL CONSTRUCTION PROJECT UNDER THE PUBLIC SCHOOL CONSTRUCTION
PROGRAM.

(3)  A COUNTY OR COUNTY BOARD MAY CONVEY OR DISPOSE OF
SURPLUS LAND UNDER THE JURISDICTION OF THE COUNTY OR COUNTY BOARD IN
EXCHANGE FOR PUBLIC SCHOOL CONSTRUCTION OR DEVELOPMENT SERVICES.

4-126.

(A) IN THIS SECTION, "ALTERNATIVE FINANCING METHODS" INCLUDES:

(1)      SALE-LEASEBACK ARRANGEMENTS, IN WHICH A COUNTY BOARD
AGREES TO TRANSFER TITLE TO A PROPERTY, INCLUDING IMPROVEMENTS, TO A
PRIVATE ENTITY THAT SIMULTANEOUSLY AGREES TO LEASE THE PROPERTY BACK
TO THE COUNTY BOARD AND, ON A SPECIFIED DATE, TRANSFER TITLE BACK TO THE
COUNTY BOARD;

(2)      LEASE-LEASEBACK ARRANGEMENTS, IN WHICH A COUNTY BOARD
LEASES A PROPERTY TO A PRIVATE ENTITY THAT IMPROVES THE PROPERTY AND
LEASES THE PROPERTY, WITH THE IMPROVEMENTS, BACK TO THE COUNTY BOARD;

(3)      PUBLIC-PRIVATE PARTNERSHIP AGREEMENTS, IN WHICH A COUNTY
BOARD CONTRACTS WITH A PRIVATE ENTITY FOR THE ACQUISITION, DESIGN,
CONSTRUCTION, IMPROVEMENT, RENOVATION, EXPANSION, EQUIPPING, OR
FINANCING OF A PUBLIC SCHOOL, AND MAY INCLUDE PROVISIONS FOR

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