(2) “Consolidation” means the dissolution of separate existing authorities and the simultaneous creation of a new authority.

(3) “Merger” means the absorption of one existing authority by another existing authority in which the one authority dissolves and the other authority continues to exist.

(b) The Housing Commission of Talbot County and the St. Michaels Housing Authority may unite by consolidation or merger to form one authority.

(c) (1) The unification of the Housing Commission of Talbot County and the St. Michaels Housing Authority shall be initiated by the passage of a proposal of unification in substantially the same form by the legislative body of the Town of Easton and the legislative body of the Town of St. Michaels.

(2) The proposal of unification shall:

(i) include a description of the boundaries of the area of operation for the proposed authority; and

(ii) be approved by each municipal corporation in the same manner provided for the adoption of a resolution or ordinance in the charter or bylaws of the municipal corporation that is considering the proposal of unification.

(d) (1) After both municipal corporations approve a proposal of unification, each municipal corporation shall appoint an equal number of representatives, which may not be less than three nor more than five, to a commission charged with drafting articles of organization for the proposed authority.

(2) The members of the commission shall:

(i) adopt rules and elect officers to govern their meetings and expedite the drafting of the articles of organization; and

(ii) complete a draft of the articles of organization no later than 6 months after the approval of the proposals of unification.

(3) In the draft articles of organization or in a separate document, the commission shall:

(i) describe the boundaries of the area of operation for the proposed authority; and

(ii) provide for:

1. the disposition of any debts, bonds, and other obligations of the Housing Commission of Talbot County and any debts, bonds, and other obligations of the St. Michaels Housing Authority;

2. the transfer to the proposed authority of any property and other assets of the Housing Commission of Talbot County and any property and other assets of the St. Michaels Housing Authority; and

3. the designation of the chief elected official, custodian of records, and legislative body of which municipal corporation that shall govern the operations of the proposed authority.

(e) (1) The commission created under subsection (d) of this section shall submit the draft articles of organization to the legislative body of each municipal corporation for adoption or rejection.

(2) The legislative body of each municipal corporation must adopt or reject the draft articles of organization as a whole.

(3) No amendment or change may be made to the draft articles of organization unless the legislative body of each municipal corporation concurs in the amendment or change.

(4) If the legislative body of each municipal corporation adopts the draft articles of organization, the appropriate custodian of records shall file the articles of organization with the Secretary of State.

(f) (1) If the Secretary of State finds that the appropriate requirements of §§ 12-205 and 12-206 of this subtitle have been satisfied, the Secretary of State shall endorse the articles as “approved” and issue a certificate of approval attached to the endorsed articles of organization.

(2) When the certificate of approval is issued, the articles of organization as filed are considered to have been adopted.

(3) An authority created under this section may not do business or exercise its powers unless the Secretary of State has issued a certificate of approval.