Maryland 2025 Regular Session

Maryland House Bill HB1230 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3	3		EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4		[Brackets] indicate matter deleted from existing law.
5		-	Underlining indicates amendments to bill.
6		-	Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7		-	amendment.
8	5		hb1230
9	6
10	7		HOUSE BILL 1230
11	8		L5 5lr0883
12	9
13	10		By: Montgomery County Delegation and Prince George’s County Delegation
14	11		Introduced and read first time: February 7, 2025
15	12		Assigned to: Environment and Transportation
16		-	Committee Report: Favorable with amendments
17		-	House action: Adopted
18		-	Read second time: March 6, 2025
19	13
20		-	~~CHAPTER ______~~
	14	+	A BILL ENTITLED
21	15
22	16		AN ACT concerning 1
23	17
24	18		Washington Suburban Sanitary Commission – System Development Charge – 2
25	19		Exemptions 3
26	20
27	21		MC/PG 107–25 4
28	22
29	23		FOR the purpose of requiring, rather than authorizing, the Montgomery County Council 5
30	24		and the Prince George’s County Council to grant exemptions from the system 6
31	25		development charge imposed by the Washington Suburban Sanitary Commission for 7
32	26		certain properties and projects located in Montgomery County; altering the method 8
33	27		by which the county councils establish eligibility for the exemptions; prohibiting the 9
34	28		county councils from requiring that an applicant for an exemption for a property 10
35	29		located in Montgomery County own the property for which the exemption is sought; 11
36	30		requiring Montgomery County to approve applications for the exemptions on a 12
37	31		first–come, first–served basis until a certain maximum annual limit is reached; and 13
38	32		generally relating to the Washington Suburban Sanitary Commission and 14
39	33		exemptions from the system development charge. 15
40	34
41	35		BY repealing and reenacting, with amendments, 16
42	36		Article – Public Utilities 17
43	37		Section 25–403 18
44	38		Annotated Code of Maryland 19
45	39		(2020 Replacement Volume and 2024 Supplement) 20
46	40
47	41		SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
48		-	That the Laws of Maryland read as follows: 22 2 HOUSE BILL 1230
	42	+	That the Laws of Maryland read as follows: 22
	43	+
	44	+	Article – Public Utilities 23
	45	+
	46	+	25–403. 24
	47	+	2 HOUSE BILL 1230
	48	+
	49	+
	50	+	(a) (1) Each year the Montgomery County Council and the Prince George’s 1
	51	+	County Council shall meet to determine the amount of the system development charge. 2
	52	+
	53	+	(2) The amount of the system development charge for a particular property: 3
	54	+
	55	+	(i) shall be based on the number of plumbing fixtures and the 4
	56	+	assigned values for those fixtures as set forth in the Commission’s plumbing and gas fitting 5
	57	+	regulations; 6
	58	+
	59	+	(ii) except as provided in item (iii) of this paragraph and subsection 7
	60	+	[(c)] (D) of this section, may not exceed $200 per fixture unit; and 8
	61	+
	62	+	(iii) for residential properties with five or fewer toilets, shall be based 9
	63	+	on the number of toilets per dwelling unit and: 10
	64	+
	65	+	1. for each apartment unit, may not exceed $2,000; 11
	66	+
	67	+	2. for dwellings with one or two toilets, may not exceed 12
	68	+	$3,000; 13
	69	+
	70	+	3. for dwellings with three or four toilets, may not exceed 14
	71	+	$5,000; 15
	72	+
	73	+	4. for dwellings with five toilets, may not exceed $7,000; and 16
	74	+
	75	+	5. for dwellings with more than five toilets, shall be 17
	76	+	calculated on a fixture unit basis. 18
	77	+
	78	+	(3) When determining the system development charge, the county councils 19
	79	+	shall consider the actual cost of construction of Commission facilities. 20
	80	+
	81	+	(b) When determining the system development charge, under [criteria] 21
	82	+	DEFINITIONS established jointly and agreed on by the county councils, the county councils: 22
	83	+
	84	+	(1) shall grant a full or partial exemption from the charge for public 23
	85	+	sponsored or affordable housing as jointly defined and agreed on by the county councils; 24
	86	+
	87	+	(2) FOR PROPERTIES LOCATED IN MONTGOMERY COUNTY ONLY , 25
	88	+	SHALL GRANT A FULL O R PARTIAL EXEMPTION FROM THE CHARGE FOR : 26
	89	+
	90	+	(I) 1. REVITALIZATION PROJE CTS; 27
	91	+
	92	+	2. PROPERTY USED BY A COMMUNITY –BASED 28
	93	+	ORGANIZATION THAT IS EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE 29
	94	+	INTERNAL REVENUE CODE AND HAS THE PRIM ARY MISSION AND PURP OSE OF 30 HOUSE BILL 1230 3
	95	+
	96	+
	97	+	PROVIDING RECREATION AL AND EDUCATIONAL P ROGRAMS AND SERVICES TO 1
	98	+	YOUTH, IF: 2
	99	+
	100	+	A. THE PR OPERTY IS USED PRIMA RILY FOR 3
	101	+	RECREATIONAL AND EDU CATIONAL PROGRAMS AN D SERVICES TO YOUTH ; AND 4
	102	+
	103	+	B. THE EXEMPTION AMOUNT IS LIMITED TO $80,000; 5
	104	+
	105	+	3. PROPERTY USED PRIMAR ILY FOR CHILD CARE O R 6
	106	+	AFTER–SCHOOL CARE ; OR 7
	107	+
	108	+	4. PROPERTY USED PRIMAR ILY FOR PR OGRAMS AND 8
	109	+	SERVICES FOR DEVELOP MENTALLY DISABLED IN DIVIDUALS; AND 9
	110	+
	111	+	(II) UNDER DEFINITIONS SET FORTH BY THE COU NTY 10
	112	+	COUNCILS: 11
	113	+
	114	+	1. RESIDENTIAL PROPERTY LOCATED IN A PLANNED 12
	115	+	RETIREMENT COMMUNITY AS DEFINED IN THE ZO NING ORDINANCE OF 13
	116	+	MONTGOMERY COUNTY; 14
	117	+
	118	+	2. ELDERLY HOUSING OTHE R THAN THAT INCLUDED IN 15
	119	+	ITEM 1 OF THIS ITEM; AND 16
	120	+
	121	+	3. PROPERTIES USED FOR MANUFACTURING OR 17
	122	+	BIOTECHNOLOGY RESEAR CH AND DEVELOPMENT ; 18
	123	+
	124	+	(3) FOR PROPERTIES LOCAT ED IN MONTGOMERY COUNTY ONLY, MAY 19
	125	+	NOT REQUIRE THAT AN APPL ICANT FOR AN EXEMPTION OWN THE PROPERTY FOR 20
	126	+	WHICH AN EXEMPTION I S SOUGHT; AND 21
	127	+
	128	+	[(2)] (4) FOR PROPERTIES LOCAT ED IN PRINCE GEORGE’S COUNTY 22
	129	+	ONLY, may grant a full or partial exemption from the charge for: 23
	130	+
	131	+	(i) 1. revitalization projects; 24
	132	+
	133	+	[(ii)] 2. property owned by a community–based organization that 25
	134	+	is exempt from taxation under § 501(c)(3) of the Internal Revenue Code and has the primary 26
	135	+	mission and purpose of providing recreational and educational programs and services to 27
	136	+	youth, if: 28
	137	+
	138	+	[1.] A. the property is used primarily for recreational and 29
	139	+	educational programs and services to youth; and 30
	140	+	4 HOUSE BILL 1230
	141	+
	142	+
	143	+	[2.] B. the exemption amount is limited to $80,000; 1
	144	+
	145	+	[(iii)] 3. property used primarily for child care or after–school care; 2
	146	+	or 3
	147	+
	148	+	[(iv)] 4. property used primarily for programs and services for 4
	149	+	developmentally disabled individuals; and 5
	150	+
	151	+	[(3)] (II) [may grant a full or partial exemption from the system 6
	152	+	development charge,] under [conditions] DEFINITIONS set forth by the county councils[, 7
	153	+	for]: 8
	154	+
	155	+	[(i)] 1. residential property located in a mixed retirement 9
	156	+	development as defined in the zoning ordinance of Prince George’s County; 10
	157	+
	158	+	[(ii) residential property located in a planned retirement community 11
	159	+	as defined in the zoning ordinance of Montgomery County; 12
	160	+
	161	+	(iii)] 2. elderly housing other than that included in item [(i) or (ii)] 13
	162	+	1 of this item; or 14
	163	+
	164	+	[(iv)] 3. properties used for manufacturing or biotechnology 15
	165	+	research and development. 16
	166	+
	167	+	(C) (1) MONTGOMERY COUNTY SHALL APPROVE APPLICATIONS FOR THE 17
	168	+	EXEMPTIONS FROM THE SYSTEM DEVELOPMENT C HARGE REQUIRED UNDER 18
	169	+	SUBSECTION (B) OF THIS SECTION ON A FIRST–COME, FIRST–SERVED BASIS UNTIL 19
	170	+	THE MAXIMUM ANNUAL LIMIT , INCLUDING ANY UNUSED AMOUNTS C ARRIED OVER 20
	171	+	FROM A PRIOR FISCAL YEAR, IS REACHED. 21
	172	+
	173	+	(2) ON OR BEFORE OCTOBER 1 EACH YEAR, MONTGOMERY COUNTY 22
	174	+	SHALL REPORT TO THE MEMBERS OF THE MONTGOMERY COUNTY DELEGATION TO 23
	175	+	THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE 24
	176	+	GOVERNMENT ARTICLE, ON THE EXEMPTIONS FROM THE SYSTEM DEVE LOPMENT 25
	177	+	CHARGE IN MONTGOMERY COUNTY REQUIRED UNDER SUBSE CTION (B) OF THIS 26
	178	+	SECTION FOR THE CURRENT AND IMMEDIATELY PRECEDIN G FISCAL YEAR , 27
	179	+	INCLUDING: 28
	180	+
	181	+	(I) THE APPLICATION PROC ESS FOR EACH EXEMPTI ON; AND 29
	182	+
	183	+	(II) FOR EACH EXEMPTION : 30
	184	+
	185	+	1. THE TOTAL NUMBER OF EXEMPTION APPLICATIO NS 31
	186	+	RECEIVED; AND 32 HOUSE BILL 1230 5
49	187
50	188
51	189
52		-	Article – Public Utilities 1
	190	+	2. THE TOTAL NUMBER AND AMOUNT OF EXEMPTIONS 1
	191	+	GRANTED. 2
53	192
54		-	25–403. 2
	193	+	[(c)] (D) On July 1, 1999, and July 1 of each succeeding year, the maximum 3
	194	+	charge, as established in subsection (a)(2) of this section, may be changed by an amount 4
	195	+	equal to the prior calendar year’s change in the Consumer Price Index published by the 5
	196	+	Bureau of Labor Statistics of the United States Department of Labor for urban wage 6
	197	+	earners and clerical workers for all items for the Washington, D.C. metropolitan area, or 7
	198	+	the successor index. 8
55	199
56		-	(a) (1) Each year the Montgomery County Council and the Prince George’s 3
57		-	County Council shall meet to determine the amount of the system development charge. 4
	200	+	[(d)] (E) If the county councils do not agree on the amount of the system 9
	201	+	development charge, the system development charge imposed during the previous year 10
	202	+	shall continue in effect for the following fiscal year. 11
58	203
59		-	(2) The amount of the system development charge for a particular property: 5
	204	+	[(e)] (F) If the system development charge established by the county councils is 12
	205	+	less than the amount necessary to recover the full cost of constructing growth related 13
	206	+	facilities, the Commission shall identify the part of the cost of that growth that will be paid 14
	207	+	by current ratepayers as: 15
60	208
61		-	(i) shall be based on the number of plumbing fixtures and the 6
62		-	assigned values for those fixtures as set forth in the Commission’s plumbing and gas fitting 7
63		-	regulations; 8
	209	+	(1) a percentage of any rate increase; and 16
64	210
65		-	(ii) ~~except as provided in item (iii) of this paragraph and subsection 9~~
66		-	~~[(c)] (D) (E) of this section, may not exceed $200 per fixture unit;~~ and 10
	211	+	(2) the annual monetary amount on a typical residential customer’s annual 17
	212	+	water and sewer bill. 18
67	213
68		-	(iii) for residential properties with five or fewer toilets, shall be based 11
69		-	on the number of toilets per dwelling unit and: 12
70		-
71		-	1. for each apartment unit, may not exceed $2,000; 13
72		-
73		-	2. for dwellings with one or two toilets, may not exceed 14
74		-	$3,000; 15
75		-
76		-	3. for dwellings with three or four toilets, may not exceed 16
77		-	$5,000; 17
78		-
79		-	4. for dwellings with five toilets, may not exceed $7,000; and 18
80		-
81		-	5. for dwellings with more than five toilets, shall be 19
82		-	calculated on a fixture unit basis. 20
83		-
84		-	(3) When determining the system development charge, the county councils 21
85		-	shall consider the actual cost of construction of Commission facilities. 22
86		-
87		-	(b) When determining the system development charge, under [criteria] 23
88		-	DEFINITIONS established jointly and agreed on by the county councils, the county councils: 24
89		-
90		-	(1) shall grant a full or partial exemption from the charge for public 25
91		-	sponsored or affordable housing as jointly defined and agreed on by the county councils; 26
92		-
93		-	(2) FOR PROPERTIES LOCATED IN MONTGOMERY COUNTY ONLY , 27
94		-	SHALL GRANT A FULL O R PARTIAL EXEMPTION FROM THE CHARGE FOR : 28
95		-
96		-	(I) 1. REVITALIZATION PROJE CTS; 29 HOUSE BILL 1230 3
97		-
98		-
99		-
100		-	2. PROPERTY USED BY A COMMUNITY –BASED 1
101		-	ORGANIZATION THAT IS EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE 2
102		-	INTERNAL REVENUE CODE AND HAS THE PRIM ARY MISSION AND PURP OSE OF 3
103		-	PROVIDING RECREATION AL AND EDUCATIONAL P ROGRAMS AND SERVICES TO 4
104		-	YOUTH, IF: 5
105		-
106		-	A. THE PROPERTY IS USED PRIMARILY FOR 6
107		-	RECREATIONAL AND EDU CATIONAL PROGRAMS AN D SERVICES TO YOUTH ; AND 7
108		-
109		-	B. THE EXEMPTION AMOUNT IS LIMITED TO $80,000; 8
110		-
111		-	3. PROPERTY USED PRIMAR ILY FOR CHILD CARE O R 9
112		-	AFTER–SCHOOL CARE ; OR 10
113		-
114		-	4. PROPERTY USED PRIMAR ILY FOR PROGRAMS AND 11
115		-	SERVICES FOR DEVELOP MENTALLY DISABLED IN DIVIDUALS; AND 12
116		-
117		-	(II) UNDER DEFINITIONS SET FORTH BY THE COUNTY 13
118		-	COUNCILS: 14
119		-
120		-	1. RESIDENTIAL PROPERTY LOCATED IN A PLANNED 15
121		-	RETIREMENT COMMUNITY AS DEFINED IN THE ZO NING ORDINANCE OF 16
122		-	MONTGOMERY COUNTY; 17
123		-
124		-	2. ELDERLY HOUSING OTHE R THAN THAT INCLUDED IN 18
125		-	ITEM 1 OF THIS ITEM; AND 19
126		-
127		-	3. PROPERTIES USED FOR MANUFACTURING OR 20
128		-	BIOTECHNOLOGY RESEAR CH AND DEVELOPMENT ; 21
129		-
130		-	(3) FOR PROPERTIES LOCAT ED IN MONTGOMERY COUNTY ONLY, MAY 22
131		-	NOT REQUIRE THAT AN APPL ICANT FOR AN EXEMPTI ON OWN THE PROPERTY FOR 23
132		-	WHICH AN EXEMPTION I S SOUGHT; AND 24
133		-
134		-	[(2)] (4) FOR PROPERTIES LOCATED IN PRINCE GEORGE’S COUNTY 25
135		-	ONLY, may grant a full or partial exemption from the charge for: 26
136		-
137		-	(i) 1. revitalization projects; 27
138		-
139		-	[(ii)] 2. property owned by a community–based organization that 28
140		-	is exempt from taxation under § 501(c)(3) of the Internal Revenue Code and has the primary 29
141		-	mission and purpose of providing recreational and educational programs and services to 30
142		-	youth, if: 31 4 HOUSE BILL 1230
143		-
144		-
145		-
146		-	[1.] A. the property is used primarily for recreational and 1
147		-	educational programs and services to youth; and 2
148		-
149		-	[2.] B. the exemption amount is limited to $80,000; 3
150		-
151		-	[(iii)] 3. property used primarily for child care or after–school care; 4
152		-	or 5
153		-
154		-	[(iv)] 4. property used primarily for programs and services for 6
155		-	developmentally disabled individuals; and 7
156		-
157		-	[(3)] (II) [may grant a full or partial exemption from the system 8
158		-	development charge,] under [conditions] DEFINITIONS set forth by the county councils[, 9
159		-	for]: 10
160		-
161		-	[(i)] 1. residential property located in a mixed retirement 11
162		-	development as defined in the zoning ordinance of Prince George’s County; 12
163		-
164		-	[(ii) residential property located in a planned retirement community 13
165		-	as defined in the zoning ordinance of Montgomery County; 14
166		-
167		-	(iii)] 2. elderly housing other than that included in item [(i) or (ii)] 15
168		-	1 of this item; or 16
169		-
170		-	[(iv)] 3. properties used for manufacturing or biotechnology 17
171		-	research and development. 18
172		-
173		-	(C) (1) MONTGOMERY COUNTY SHALL APPROVE APPLICATIONS FOR THE 19
174		-	EXEMPTIONS FROM THE SYSTEM DEVELOPMENT C HARGE REQUIRED UNDER 20
175		-	SUBSECTION (B) OF THIS SECTION ON A FIRST–COME, FIRST–SERVED BASIS UNTIL 21
176		-	THE MAXIMUM ANNUAL LIMIT , INCLUDING ANY UNUSED AMOUNTS C ARRIED OVER 22
177		-	FROM A PRIOR FISCAL YEAR, IS REACHED. 23
178		-
179		-	(2) ON OR BEFORE OCTOBER 1 EACH YEAR, MONTGOMERY COUNTY 24
180		-	SHALL REPORT TO THE MEMBERS OF THE MONTGOMERY COUNTY DELEGATION TO 25
181		-	THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE 26
182		-	GOVERNMENT ARTICLE, ON THE EXEMPTIONS FROM THE SYSTEM DEVELOPME NT 27
183		-	CHARGE IN MONTGOMERY COUNTY REQUIRED UNDER : 28
184		-
185		-	(I) SUBSECTION (B)(1) OF THIS SECTION FOR THE 29
186		-	IMMEDIATELY PRECEDIN G FISCAL YEAR, INCLUDING: 30
187		-
188		-	1. THE PROCESS USED TO IDENTIFY PUBLICLY 31
189		-	SPONSORED AND AFFORD ABLE HOUSING PROJECT S; 32 HOUSE BILL 1230 5
190		-
191		-
192		-
193		-	2. THE NUMBER OF PUBLIC LY SPONSORED AND 1
194		-	AFFORDABLE HOUSING P ROJECTS GRANTED EXEM PTIONS; AND 2
195		-
196		-	3. THE NUMBER OF PUBLIC LY SPONSORED OR 3
197		-	AFFORDABLE HOUSING U NITS INCLUDED IN EAC H PROJECT; AND 4
198		-
199		-	(II) SUBSECTION (B) SUBSECTION (B)(2) OF THIS SECTION FOR 5
200		-	THE CURRENT AND IMMEDIATELY PRECEDIN G FISCAL YEAR, INCLUDING: 6
201		-
202		-	(I) 1. THE APPLICATION PROC ESS FOR EACH EXEMPTI ON; 7
203		-	AND 8
204		-
205		-	(II) 2. FOR EACH EXEMPTION : 9
206		-
207		-	1. A. THE TOTAL NUMBER OF EXEMPTION APPLICATIO NS 10
208		-	RECEIVED; AND 11
209		-
210		-	2. B. THE TOTAL NUMBER AND AMOUNT OF EXEMPTIONS 12
211		-	GRANTED. 13
212		-
213		-	(D) ON OR BEFORE OCTOBER 1 EACH YEAR, PRINCE GEORGE’S COUNTY 14
214		-	SHALL REPORT TO THE MEMBERS OF THE PRINCE GEORGE’S COUNTY DELEGATION 15
215		-	TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE 16
216		-	GOVERNMENT ARTICLE, ON THE EXEMPTIONS FR OM THE SYSTEM DEVELO PMENT 17
217		-	CHARGE IN PRINCE GEORGE’S COUNTY DESCRIBED UNDE R: 18
218		-
219		-	(1) SUBSECTION (B)(1) OF THIS SECTION FOR THE IMMEDIATELY 19
220		-	PRECEDING FISCAL YEA R, INCLUDING: 20
221		-
222		-	(I) THE PROCESS USED TO IDENTIFY PUBLICLY SPONSORED 21
223		-	AND AFFORDABLE HOUSI NG PROJECTS; 22
224		-
225		-	(II) THE NUMBER OF PUBLIC LY SPONSORED AND AFF ORDABLE 23
226		-	HOUSING PROJECTS GRA NTED EXEMPTIONS ; AND 24
227		-
228		-	(III) THE NUMBER OF PUBLIC LY SPONSORED OR AFFO RDABLE 25
229		-	HOUSING UNITS INCLUD ED IN EACH PROJECT ; AND 26
230		-
231		-	(2) SUBSECTION (B)(4) OF THIS SECTION FOR THE IMMEDIATELY 27
232		-	PRECEDING FISCAL YEA R, INCLUDING: 28
233		-
234		-	(I) THE APPLICATION PROC ESS FOR EACH EXEMPTI ON; AND 29 6 HOUSE BILL 1230
235		-
236		-
237		-
238		-	(II) FOR EACH EXEMPTION : 1
239		-
240		-	1. THE TOTAL NUMBER OF EXEMPTION APPLICATIO NS 2
241		-	RECEIVED; AND 3
242		-
243		-	2. THE TOTAL NUMBER AND AMOUNT OF EXEMPTIONS 4
244		-	GRANTED. 5
245		-
246		-	[(c)] (D) (E) On July 1, 1999, and July 1 of each succeeding year, the maximum 6
247		-	charge, as established in subsection (a)(2) of this section, may be changed by an amount 7
248		-	equal to the prior calendar year’s change in the Consumer Price Index published by the 8
249		-	Bureau of Labor Statistics of the United States Department of Labor for urban wage 9
250		-	earners and clerical workers for all items for the Washington, D.C. metropolitan area, or 10
251		-	the successor index. 11
252		-
253		-	[(d)] (E) (F) If the county councils do not agree on the amount of the system 12
254		-	development charge, the system development charge imposed during the previous year 13
255		-	shall continue in effect for the following fiscal year. 14
256		-
257		-	[(e)] (F) (G) If the system development charge established by the county councils is 15
258		-	less than the amount necessary to recover the full cost of constructing growth related 16
259		-	facilities, the Commission shall identify the part of the cost of that growth that will be paid 17
260		-	by current ratepayers as: 18
261		-
262		-	(1) a percentage of any rate increase; and 19
263		-
264		-	(2) the annual monetary amount on a typical residential customer’s annual 20
265		-	water and sewer bill. 21
266		-
267		-	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
268		-	1, 2025. 23
269		-
270		-
271		-
272		-	Approved:
273		-	________________________________________________________________________________
274		-	Governor.
275		-	________________________________________________________________________________
276		-	Speaker of the House of Delegates.
277		-	________________________________________________________________________________
278		-	President of the Senate.
	214	+	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 19
	215	+	1, 2025. 20