(a)    (1)    In this section the following words have the meanings indicated.

(2)    “Infill development” means new development in a priority funding area on vacant, bypassed, and underutilized lands within existing developed areas.

(3)    “Smart neighborhood development” means a comprehensively planned, compact mixed use development within a priority funding area that integrates residential, commercial, open space, and public uses.

(b)    The Department of Planning shall:

(1)    establish a process for the review of projects by the appropriate State agencies and the Department of Planning for compliance with this subtitle;

(2)    provide to each State agency and unit of State government the location of priority funding areas; and

(3)    make available to each county, and to the public for review, copies of maps illustrating:

(i)    priority funding areas certified by the local governments; and

(ii)    any comments by the Department of Planning on the areas certified.

(c)    By October 1, 1998, the Department of Planning shall complete surveys of municipal, county, and State governments for infrastructure needs and shall maintain a list of needed projects that includes information relating to the financial capacity of the affected unit of government to undertake such projects.

(d)    Repealed.

(e)    The Department of Planning shall:

(1)    draft model land–use codes for infill development and smart neighborhood development;

(2)    draft guidelines to provide local governments with information on innovative planning and implementation techniques to encourage and facilitate infill development and smart neighborhood development;

(3)    circulate the models and guidelines to other State agencies and departments; and

(4)    work with local governments, State agencies, and departments to develop incentives to encourage the voluntary adoption and implementation by local governments of models and guidelines implementing the intent of the models and guidelines required to be developed by the Department of Planning under this section.

(f)    Each State agency subject to this subtitle shall report annually to the Department of Planning on the implementation of this subtitle in a form approved by the Department of Planning.