EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *hb1195* HOUSE BILL 1195 L5 5lr0884 By: Montgomery County Delegation and Prince George’s County Delegation Introduced and read first time: February 6, 2025 Assigned to: Environment and Transportation A BILL ENTITLED AN ACT concerning 1 Washington Suburban Sanitary Commission – Membership, Transparency, 2 Billing, and Planning 3 (WSSC Transparency and Reform Act of 202 5) 4 MC/PG 105–25 5 FOR the purpose of requiring one of the commissioners from Montgomery County on the 6 Washington Suburban Sanitary Commission to be the Director of the Montgomery 7 County Department of Environmental Protection or the Director’s designee; 8 requiring the Commission to develop certain long–range planning scenarios on a 9 periodic basis; requiring the Commission to include certain information related to 10 the Commission on the Commission’s searchable website; prohibiting the 11 Commission from limiting how frequently certain customers may receive a certain 12 billing adjustment; altering the authorized billing frequency for certain charges; 13 requiring the Commission to appoint a representative to a certain coordinating 14 committee; requiring the Office of Program Evaluation and Government 15 Accountability in the Department of Legislative Services to conduct a certain review 16 of the efficiency and sustainability of the Commission’s operations; and generally 17 relating to the Washington Suburban Sanitary Commission. 18 BY repealing and reenacting, with amendments, 19 Article – Public Utilities 20 Section 17–102, 17–107, 17–401, and 25–504(a) and (b) 21 Annotated Code of Maryland 22 (2020 Replacement Volume and 2024 Supplement) 23 BY adding to 24 Article – Public Utilities 25 Section 17–202.1 and 28–102 26 Annotated Code of Maryland 27 (2020 Replacement Volume and 2024 Supplement) 28 2 HOUSE BILL 1195 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1 That the Laws of Maryland read as follows: 2 Article – Public Utilities 3 17–102. 4 (a) The Commission consists of: 5 (1) three commissioners from Prince George’s County, appointed by the 6 County Executive subject to the confirmation of the County Council; and 7 (2) three commissioners from Montgomery County, OF WHOM: 8 (I) TWO ARE appointed by the County Executive subject to the 9 confirmation of the County Council; AND 10 (II) ONE IS THE DIRECTOR OF THE MONTGOMERY COUNTY 11 DEPARTMENT OF ENVIRONMENTAL PROTECTION, OR THE DIRECTOR’S DESIGNEE. 12 (b) (1) Each commissioner from Prince George’s County shall be a resident of 13 the sanitary district. 14 (2) (i) Each commissioner from Montgomery County shall be a 15 registered voter of Montgomery County. 16 (ii) Each commissioner from Prince George’s County shall be a 17 registered voter of Prince George’s County. 18 (c) (1) [An] EXCEPT AS PROVIDED IN SUBSECTION (A)(2)(II) OF THIS 19 SECTION, AN individual may not be appointed or continue in office as a commissioner if 20 the individual holds any other position of profit or trust under the Constitution or laws of 21 the State or any political subdivision of the State. 22 (2) Not more than two commissioners from Montgomery County may be of 23 the same political party. 24 (d) (1) The term of a commissioner is 4 years and begins on June 1 of the year 25 of appointment. 26 (2) The terms of commissioners are staggered as required by the terms 27 provided for commissioners on July 1, 1982. 28 (3) At the end of a term, a commissioner continues to serve until a successor 29 is appointed and takes the oath of office. 30 HOUSE BILL 1195 3 (4) A commissioner who is appointed after a term has begun serves only for 1 the rest of the term and until a successor is appointed and takes the oath of office. 2 (5) A vacancy on the Commission does not impair the right of the 3 remaining commissioners to exercise all the powers of the Commission. 4 17–107. 5 (a) (1) [The] EXCEPT AS PROVIDED IN SUBSECTION (D) OF THIS SECTION, 6 THE members of the Commission are entitled to the following annual salaries: 7 (i) chair .................................................................................. $13,500; 8 (ii) vice chair ................................................................... $13,000; and 9 (iii) commissioners .................................................................. $13,000. 10 (2) The salary shall be paid every 2 weeks. 11 (b) While in office, commissioners may participate in any Commission program of 12 group health, life, and disability insurance to the same extent and under the same terms 13 as Commission staff. 14 (c) The Commission may employ a staff in accordance with the Commission’s 15 budget. 16 (D) A MEMBER OF THE COMMISSION WHO ALSO SERVES AS THE DIRECTOR 17 OF THE MONTGOMERY COUNTY DEPARTMENT OF ENVIRONMENTAL PROTECTION 18 MAY NOT RECEIVE COMP ENSATION FOR DUTIES PERFORMED AS A MEMBE R OF THE 19 COMMISSION. 20 17–202.1. 21 (A) FOR FISCAL YEAR 2026 AND EVERY 5 FISCAL YEARS THEREAFTER , THE 22 COMMISSION SHALL DEVELOP LONG –RANGE PLANNING SCENA RIOS FOR ITS 23 OPERATING AND CAPITA L BUDGETS AND DEBT SERVICE . 24 (B) THE SCENARIOS SHALL I NCLUDE: 25 (1) PROJECTIONS THAT DO NOT INCLUDE THE AD VAL OREM TAX 26 AUTHORIZED UNDER § 22–112 OF THIS ARTICLE; 27 (2) PROJECTIONS THAT INC LUDE A RANGE OF AD V ALOREM TAXES ; 28 AND 29 4 HOUSE BILL 1195 (3) SUBJECT TO SUBSECTIO N (C)(2) OF THIS SECTION , STRESS 1 TESTING THE IMPACT OF A WIDE RANGE OF ECONOMIC CO NDITIONS THAT MAY 2 AFFECT THE COMMISSION AND ITS FINANCIAL SO LVENCY, INCLUDING CHANGES IN 3 EMPLOYMENT RATES , INTEREST RATES , AND WATER USAGE . 4 (C) (1) THE COMMISSION MAY CONSUL T WITH INDEPENDENT E XPERTS 5 IN DEVELOPING LONG –RANGE PLANNING SCENA RIOS UNDER THIS SECTION . 6 (2) STRESS TESTING DONE U NDER SUBSECTION (B)(3) OF THIS 7 SECTION SHALL BE BAS ED ON INDUSTRY STAND ARDS. 8 17–401. 9 (a) (1) In this section the following words have the meanings indicated. 10 (2) (i) “Payee” means a person that receives from the Commission an 11 aggregate payment of $25,000 in a single fiscal year. 12 (ii) “Payee” does not include: 13 1. a Commission employee with respect to the employee’s 14 compensation; or 15 2. a Commission retiree with respect to the retiree’s 16 retirement allowance. 17 (3) “Searchable website” means a website created in accordance with this 18 section that displays and searches payment data of the Commission. 19 (b) The Commission shall: 20 (1) publish annually in at least one newspaper in Montgomery County and 21 one newspaper in Prince George’s County a copy of the current financial statement of the 22 Commission; 23 (2) employ a certified public accountant licensed to practice in the State to 24 audit the books and accounts of the Commission; 25 (3) keep available for public inspection during business hours at its 26 principal office the annual audit and current financial statement; and 27 (4) file annually with the county executives and county councils of 28 Montgomery County and Prince George’s County, and the Montgomery County and Prince 29 George’s County Senate and House delegations to the Maryland General Assembly a 30 certified copy of the annual audit and current financial statement. 31 HOUSE BILL 1195 5 (c) On or before July 1, 2020, the Commission shall develop and operate a single 1 searchable website accessible to the public at no cost through the Internet. 2 (d) The searchable website shall contain Commission payment data including: 3 (1) the name of each payee receiving a payment; 4 (2) the location of the payee by postal zip code; and 5 (3) the amount of the payment. 6 (e) The searchable website shall allow the user to: 7 (1) search data for fiscal year 2019 and each fiscal year thereafter; and 8 (2) search by the following data fields: 9 (i) a payee receiving a payment; and 10 (ii) the zip code of a payee receiving a payment. 11 (F) THE SEARCHABLE WEBSIT E SHALL CONTAIN ALL BOND RATING 12 REPORTS ISSUED FOR THE COMMISSION FROM ONE O F THE MAJOR CREDIT R ATING 13 AGENCIES, INCLUDING: 14 (1) A COPY OF ANY AUDITS COMPLETED IN RELATION TO A BON D 15 RATING REPORT; AND 16 (2) A COPY OF ANY FINANCIA L STATEMENTS PROVIDE D IN RELATION 17 TO A BOND RATING REP ORT. 18 (G) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 19 SEARCHABLE WEBSITE S HALL CONTAIN DATA RE LATED TO THE REFUND HEARING 20 BOARD OF THE COMMISSION AND THE DISPUTE RESOLUTION BOARD OF THE 21 COMMISSION, INCLUDING: 22 (I) THE NUMBER OF CASES FILED; 23 (II) THE NUMBER OF CASES CLOSED; 24 (III) THE NUMBER OF CASES GRANTED; 25 (IV) THE NUMBER OF CASES DENIED; 26 6 HOUSE BILL 1195 (V) THE REFUND AMOUNT RE QUESTED IN EACH CASE ; AND 1 (VI) THE REFUND AMOUNT GR ANTED IN EACH CASE . 2 (2) THE DATA PROVIDED UND ER PARAGRAPH (1) OF THIS 3 SUBSECTION MAY NOT C ONTAIN ANY PERSONALL Y IDENTIFIABLE INFOR MATION. 4 (H) THE SEARCHABLE WEBSIT E SHALL INCLUDE A COPY OF AN Y STRESS 5 TESTING COMPLETED FOR ANY LONG–RANGE PLANNING SCENA RIOS DEVELOPED IN 6 ACCORDANCE WITH § 17–202.1 OF THIS TITLE. 7 [(f)] (I) This section may not be construed to require the disclosure of 8 information that is required to be kept confidential under federal, State, or local law. 9 [(g)] (J) (1) Subject to paragraph (2) of this subsection, the county council or 10 county executive of Montgomery County or Prince George’s County may, in person or by a 11 duly authorized agent, audit and examine the books and records of the Commission. 12 (2) The Commission may not be required to pay the cost of the audit or 13 examination under paragraph (1) of this subsection. 14 25–504. 15 (a) The Commission: 16 (1) may provide for the billing and collection of the water and sewer usage 17 charges on an estimated basis for periods of 6 months or less, based on the historical daily 18 average consumption calculated from actual previous usage; 19 (2) shall read the meter at least once every 6 months; and 20 (3) (i) shall base the final bill for the 6–month period on the actual 21 consumption adjusted by previous estimates, if the meter had not been read because it was 22 inaccessible; 23 (ii) shall base the final bill for the 6–month period on the historical 24 daily average consumption, calculated from actual previous usage, if a final reading cannot 25 be made because: 26 1. the meter malfunctioned; 27 2. the meter had been taken out of service for repairs, 28 maintenance, or water system relining purposes; or 29 3. there was theft of service; 30 HOUSE BILL 1195 7 (iii) may modify the historical daily average consumption calculation 1 based on appropriate evidence submitted by the owner; [and] 2 (iv) MAY NOT LIMIT HOW FR EQUENTLY A CUSTOMER MAY 3 RECEIVE AN ADJUSTMEN T UNDER § 3.20.040(A) OR (B) OF THE WASHINGTON 4 SUBURBAN SANITARY COMMISSION CODE OF REGULATIONS; AND 5 (V) may not base a final bill on estimated usage for two consecutive 6 6–month periods. 7 (b) (1) (I) The Commission shall bill for the amount of water and sewer 8 usage charges to each property served monthly, every other month, OR four times a year, 9 [or twice a year,] as the Commission determines. 10 (II) IT IS THE INTENT OF T HE GENERAL ASSEMBLY THAT THE 11 COMMISSION SHALL BILL ON A MONTHLY BA SIS. 12 (2) On receipt each bill is payable to the Commission. 13 28–102. 14 THE COMMISSION SHALL APPO INT A REPRESENTATIVE TO SERVE ON THE 15 COORDINATING COMMITT EE ESTABLISHED UNDER PART IV OF THE 1984 AVENEL 16 FARM DEVELOPMENT PLAN MASTER AGREEMENT SIGNED BY T HE COMMISSION. 17 SECTION 2. AND BE IT FURTHER ENACTED, That: 18 (a) The Washington Suburban Sanitary Commission shall study the feasibility of 19 using differential rates among different customer classes for the Commission’s service rates 20 and charges, including studying the revenue possibilities of and economic impact on the 21 different customer classes. 22 (b) On or before October 1, 2026, the Commission shall report its findings and 23 recommendations, including any recommended statutory changes, to the members of the 24 Montgomery County and Prince George’s County delegations to the General Assembly, in 25 accordance with § 2–1257 of the State Government Article. 26 SECTION 3. AND BE IT FURTHER ENACTED, That : 27 (a) The Office of Program Evaluation and Government Accountability in the 28 Department of Legislative Services shall conduct a review of the efficiency and 29 sustainability of the operations of the Washington Suburban Sanitary Commission. 30 (b) The review conducted under subsection (a) of this section shall include: 31 (1) a review of the statutory provisions related to the Commission, 32 8 HOUSE BILL 1195 including the Commission’s regulations, policies, and procedures; 1 (2) a review of the Commission’s budgetary process, including the annual 2 setting of rates through the relevant county councils; 3 (3) a review of the Commission’s process for entering into consent decrees; 4 (4) a review of the subject matter expertise of appointed commissioners; 5 (5) benchmarking with other systems across a range of operating cost 6 metrics related to the efficiency and sustainability of the Commission; 7 (6) a review of the effectiveness of the Commission’s capital program and 8 its ability to maintain water and sewer distribution pipelines and processing plants that 9 meet asset management standards; 10 (7) a study on the Commission’s use of its police force, including: 11 (i) a comparison of the size and scope of the Commission’s police 12 force with the police force of other utilities; and 13 (ii) whether there are more efficient approaches to water utility 14 security and policing; 15 (8) an analysis on the impact of the Commission not being a government 16 entity in the context of access to government programs that provide customer water 17 assistance or other available funding; 18 (9) a review of the role the Public Service Commission plays in oversight of 19 the Commission, including in its review of the reasonableness of any rate, charge, or 20 assessment done in accordance with § 25–105 of the Public Utilities Article; and 21 (10) an analysis of whether the Office of the Inspector General of the 22 Commission is effective in achieving the purposes of the Office, including: 23 (i) whether the Office is sufficiently independent of the Commission 24 and management within the Commission; and 25 (ii) whether the mandate of the Office should include additional 26 reviews and reports that would help achieve the purposes of the Office, including reports 27 on the effectiveness of internal controls over finance, operations, and compliance activities. 28 (c) On or before October 1, 2027, the Office of Program Evaluation and 29 Government Accountability shall report its findings and recommendations to the members 30 of the Montgomery County and Prince George’s County delegations to the General 31 Assembly, in accordance with § 2–1257 of the State Government Article. 32 HOUSE BILL 1195 9 SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect 1 October 1, 2025. Section 2 of this Act shall remain effective for a period of 1 year and 1 2 month and, at the end of October 31, 2026, Section 2 of this Act, with no further action 3 required by the General Assembly, shall be abrogated and of no further force and effect. 4 Section 3 of this Act shall remain effective for a period of 2 years and 1 month and, at the 5 end of October 31, 2027, Section 3 of this Act, with no further action required by the General 6 Assembly, shall be abrogated and of no further force and effect. 7