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§ 19-603. Participation of local governments in insurance pools

West's Annotated Code of MarylandInsurance

West's Annotated Code of Maryland
Insurance (Refs & Annos)
Title 19. Property and Casualty Insurance
Subtitle 6. Insurance Pools (Refs & Annos)
MD Code, Insurance, § 19-603
§ 19-603. Participation of local governments in insurance pools
Currentness
Local government defined
(a) In this section, “local government” means a county or municipal corporation in the State.
Agreements to fund insurance pool
(b) A local government:
(1) may enter into an agreement to fund an insurance pool established under this subtitle; and
(2) except as otherwise provided in this section, may determine by resolution the provisions, terms, conditions, and duration of the agreement.
Payment obligations in agreements
(c)(1) Except as provided in paragraph (2) of this subsection, a payment obligation in an agreement authorized by this section:
(i) shall be a general obligation of the local government to which its full faith and credit and unlimited taxing power is pledged; and
(ii) may not be subject to annual appropriation by the local government.
(2) If a provision of the Maryland Constitution limits a local government in undertaking a payment obligation described in paragraph (1) of this subsection, or requires a local government to comply with certain procedures before undertaking a payment obligation described in paragraph (1) of this subsection, the local government may provide that the payment obligation is:
(i) a limited obligation of the local government repayable from assets and revenues as provided in the agreement; or
(ii) subject to annual appropriation by the local government.
Power of local government to undertake payment obligation in agreement
(d) Subject to the limitations of this section, a local government may undertake a payment obligation in an agreement authorized by this section:
(1) without regard to any limitations contained in its charter or other applicable public local or public general law that otherwise would apply; and
(2) without complying with any procedures contained in its charter or other applicable public local or public general law that otherwise would be required.
Restrictions relating to aggregate outstanding and unpaid principal amounts
(e) On the date a local government executes an agreement authorized by this section, the aggregate outstanding and unpaid principal amount that the local government is obligated to pay under the agreement may not exceed 0.2% of the local government's assessable base for real property tax purposes for the fiscal year in which the agreement is executed, as determined by the State Department of Assessments and Taxation.

Credits

Added by Acts 1996, c. 11, § 1, eff. Oct. 1, 1997.
Formerly Art. 48A, § 482B.
MD Code, Insurance, § 19-603, MD INSURANCE § 19-603
Current through legislation effective through April 9, 2023, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
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