EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0993*
SENATE BILL 993
L5 4lr2948
By: Senator Benson
Introduced and read first time: February 2, 2024
Assigned to: Education, Energy, and the Environment
A BILL ENTITLED
AN ACT concerning 1
Washington Suburban Sanitary Commission – System Development Charge – 2
Review and Credit for Construction of Facility 3
FOR the purpose of requiring the Office of the Inspector General of the Washington 4
Suburban Sanitary Commission to complete a review of a certain facility within a 5
certain time after receiving confirmation that the construction of the facility is 6
complete; requiring the Washington Suburban Sanitary Commission to grant the 7
developer of the facility a certain credit against a certain system development charge 8
within a certain time after the review is completed; requiring the Commission to pay 9
a certain penalty and interest under certain circumstances; applying this Act 10
retroactively; and generally relating to credit granted against the system 11
development charge by the Washington Suburban Sanitary Commission. 12
BY repealing and reenacting, without amendments, 13
Article – Public Utilities 14
Section 25–402(a) 15
Annotated Code of Maryland 16
(2020 Replacement Volume and 2023 Supplement) 17
BY repealing and reenacting, with amendments, 18
Article – Public Utilities 19
Section 25–405 20
Annotated Code of Maryland 21
(2020 Replacement Volume and 2023 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASS EMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Public Utilities 25
25–402. 26 2 SENATE BILL 993
(a) In addition to any other charges authorized under this division, the 1
Commission may impose a system development charge that shall be paid by an applicant 2
for new service. 3
25–405. 4
(a) The Commission may allow a developer to design and construct any on–site 5
or off–site facility necessary for the developer’s project if the facility is: 6
(1) in the Commission Capital Improvement Program and the 10 –year 7
Comprehensive Water Supply and Sewerage System Plan adopted by one of the county 8
councils; 9
(2) a major project included in the Commission Capital Improvement 10
Program; or 11
(3) a project that includes a sewer main or water main that: 12
(i) provides only local service; 13
(ii) is 2,000 feet or less; 14
(iii) has a diameter of: 15
1. 15 inches or more if it is a sewer main; or 16
2. 16 inches or more if it is a water main; and 17
(iv) is built to avoid unnecessary and uneconomical duplication when 18
a major project is constructed. 19
(b) A facility constructed under this section shall be designed, constructed, and 20
inspected in accordance with: 21
(1) the standards used by the Commission; and 22
(2) all applicable laws, regulations, and written policies of the Commission. 23
(c) After the Commission approves a facility constructed by a developer under 24
this section, the Commission shall: 25
(1) accept the facility as part of the Commission system; and 26
(2) subject to subsection (d) of this section, grant the developer a credit 27
against any charge imposed under this subtitle in an amount equal to the cost of 28
constructing the facility. 29 SENATE BILL 993 3
(d) (1) The Office of the Inspector General shall review and approve the costs 1
incurred by the developer. 2
(2) THE OFFICE OF THE INSPECTOR GENERAL SHALL COMPLETE A 3
REVIEW UNDER THIS SU BSECTION WITHIN 60 DAYS AFTER THE COMMISSION 4
RECEIVES CONFIRMATIO N THAT THE CONSTRUCTION OF A FACILITY APPROVED BY 5
THE COMMISSION IS COMPLETE. 6
(3) (I) THE COMMISSION SHALL GRANT THE DE VELOPER A CREDIT 7
IN ACCORDANCE WITH S UBSECTION (C)(2) OF THIS SECTION WITHIN 14 DAYS AFTER 8
THE REVIEW REQUIRED UNDER THIS SUBSECTION IS COMPLETED . 9
(II) IF THE COMMISSION DOES NOT GRANT THE C REDIT FOR AN 10
APPROVED FACILITY WITHIN 14 DAYS AFTER THE REVIEW IS COMPLETED , THE 11
COMMISSION SHALL PAY TO THE DEVELOPER : 12
1. A PENALTY CONSISTING OF 5% OF THE TOTAL 13
AMOUNT OF THE CREDIT OWED TO THE DEVELOPE R; AND 14
2. INTEREST ON THE AMOU NT OF CREDIT OWED TO THE 15
DEVELOPER AT A RATE OF 12%, COMPOUNDED ANNUALLY. 16
(e) The Commission and the developer shall enter into an agreement that 17
incorporates the provisions of this section. 18
(f) If the Commission rejects a developer’s request to design and construct 19
facilities under this section, the Commission shall explain in writing to the developer the 20
reasons for the rejection. 21
(g) (1) The Commission shall submit a report at the end of each fiscal year to 22
the Montgomery County and Prince George’s County Delegations to the General Assembly 23
and to the county councils of Montgomery County and Prince George’s County. 24
(2) The report shall state the number of requests made by developers under 25
this section, including: 26
(i) the number of acceptances and rejections by the Commission; 27
and 28
(ii) the justification for any rejections. 29
SECTION 2. AND BE IT FURTHER ENACTED, That , subject to Section 3 of this 30
Act, this Act shall be construed to apply retroactively and shall be applied to and 31 4 SENATE BILL 993
interpreted to affect all facilities approved by the Washington Suburban Sanitary 1
Commission on and after January 1, 2023. 2
SECTION 3. AND BE IT FURTHER ENACTED, That a presently existing obligation 3
or contract right may not be impaired in any way by this Act. 4
SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 5
October 1, 2024. 6