EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb1230*
HOUSE BILL 1230
L5 5lr0883
By: Montgomery County Delegation and Prince George’s County Delegation
Introduced and read first time: February 7, 2025
Assigned to: Environment and Transportation
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 6, 2025
CHAPTER ______
AN ACT concerning 1
Washington Suburban Sanitary Commission – System Development Charge – 2
Exemptions 3
MC/PG 107–25 4
FOR the purpose of requiring, rather than authorizing, the Montgomery County Council 5
and the Prince George’s County Council to grant exemptions from the system 6
development charge imposed by the Washington Suburban Sanitary Commission for 7
certain properties and projects located in Montgomery County; altering the method 8
by which the county councils establish eligibility for the exemptions; prohibiting the 9
county councils from requiring that an applicant for an exemption for a property 10
located in Montgomery County own the property for which the exemption is sought; 11
requiring Montgomery County to approve applications for the exemptions on a 12
first–come, first–served basis until a certain maximum annual limit is reached; and 13
generally relating to the Washington Suburban Sanitary Commission and 14
exemptions from the system development charge. 15
BY repealing and reenacting, with amendments, 16
Article – Public Utilities 17
Section 25–403 18
Annotated Code of Maryland 19
(2020 Replacement Volume and 2024 Supplement) 20
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21
That the Laws of Maryland read as follows: 22 2 HOUSE BILL 1230
Article – Public Utilities 1
25–403. 2
(a) (1) Each year the Montgomery County Council and the Prince George’s 3
County Council shall meet to determine the amount of the system development charge. 4
(2) The amount of the system development charge for a particular property: 5
(i) shall be based on the number of plumbing fixtures and the 6
assigned values for those fixtures as set forth in the Commission’s plumbing and gas fitting 7
regulations; 8
(ii) except as provided in item (iii) of this paragraph and subsection 9
[(c)] (D) (E) of this section, may not exceed $200 per fixture unit; and 10
(iii) for residential properties with five or fewer toilets, shall be based 11
on the number of toilets per dwelling unit and: 12
1. for each apartment unit, may not exceed $2,000; 13
2. for dwellings with one or two toilets, may not exceed 14
$3,000; 15
3. for dwellings with three or four toilets, may not exceed 16
$5,000; 17
4. for dwellings with five toilets, may not exceed $7,000; and 18
5. for dwellings with more than five toilets, shall be 19
calculated on a fixture unit basis. 20
(3) When determining the system development charge, the county councils 21
shall consider the actual cost of construction of Commission facilities. 22
(b) When determining the system development charge, under [criteria] 23
DEFINITIONS established jointly and agreed on by the county councils, the county councils: 24
(1) shall grant a full or partial exemption from the charge for public 25
sponsored or affordable housing as jointly defined and agreed on by the county councils; 26
(2) FOR PROPERTIES LOCATED IN MONTGOMERY COUNTY ONLY , 27
SHALL GRANT A FULL O R PARTIAL EXEMPTION FROM THE CHARGE FOR : 28
(I) 1. REVITALIZATION PROJE CTS; 29 HOUSE BILL 1230 3
2. PROPERTY USED BY A COMMUNITY –BASED 1
ORGANIZATION THAT IS EXEMPT FROM TAXATION UNDER § 501(C)(3) OF THE 2
INTERNAL REVENUE CODE AND HAS THE PRIM ARY MISSION AND PURP OSE OF 3
PROVIDING RECREATION AL AND EDUCATIONAL P ROGRAMS AND SERVICES TO 4
YOUTH, IF: 5
A. THE PROPERTY IS USED PRIMARILY FOR 6
RECREATIONAL AND EDU CATIONAL PROGRAMS AN D SERVICES TO YOUTH ; AND 7
B. THE EXEMPTION AMOUNT IS LIMITED TO $80,000; 8
3. PROPERTY USED PRIMAR ILY FOR CHILD CARE O R 9
AFTER–SCHOOL CARE ; OR 10
4. PROPERTY USED PRIMAR ILY FOR PROGRAMS AND 11
SERVICES FOR DEVELOP MENTALLY DISABLED IN DIVIDUALS; AND 12
(II) UNDER DEFINITIONS SET FORTH BY THE COUNTY 13
COUNCILS: 14
1. RESIDENTIAL PROPERTY LOCATED IN A PLANNED 15
RETIREMENT COMMUNITY AS DEFINED IN THE ZO NING ORDINANCE OF 16
MONTGOMERY COUNTY; 17
2. ELDERLY HOUSING OTHE R THAN THAT INCLUDED IN 18
ITEM 1 OF THIS ITEM; AND 19
3. PROPERTIES USED FOR MANUFACTURING OR 20
BIOTECHNOLOGY RESEAR CH AND DEVELOPMENT ; 21
(3) FOR PROPERTIES LOCAT ED IN MONTGOMERY COUNTY ONLY, MAY 22
NOT REQUIRE THAT AN APPL ICANT FOR AN EXEMPTI ON OWN THE PROPERTY FOR 23
WHICH AN EXEMPTION I S SOUGHT; AND 24
[(2)] (4) FOR PROPERTIES LOCATED IN PRINCE GEORGE’S COUNTY 25
ONLY, may grant a full or partial exemption from the charge for: 26
(i) 1. revitalization projects; 27
[(ii)] 2. property owned by a community–based organization that 28
is exempt from taxation under § 501(c)(3) of the Internal Revenue Code and has the primary 29
mission and purpose of providing recreational and educational programs and services to 30
youth, if: 31 4 HOUSE BILL 1230
[1.] A. the property is used primarily for recreational and 1
educational programs and services to youth; and 2
[2.] B. the exemption amount is limited to $80,000; 3
[(iii)] 3. property used primarily for child care or after–school care; 4
or 5
[(iv)] 4. property used primarily for programs and services for 6
developmentally disabled individuals; and 7
[(3)] (II) [may grant a full or partial exemption from the system 8
development charge,] under [conditions] DEFINITIONS set forth by the county councils[, 9
for]: 10
[(i)] 1. residential property located in a mixed retirement 11
development as defined in the zoning ordinance of Prince George’s County; 12
[(ii) residential property located in a planned retirement community 13
as defined in the zoning ordinance of Montgomery County; 14
(iii)] 2. elderly housing other than that included in item [(i) or (ii)] 15
1 of this item; or 16
[(iv)] 3. properties used for manufacturing or biotechnology 17
research and development. 18
(C) (1) MONTGOMERY COUNTY SHALL APPROVE APPLICATIONS FOR THE 19
EXEMPTIONS FROM THE SYSTEM DEVELOPMENT C HARGE REQUIRED UNDER 20
SUBSECTION (B) OF THIS SECTION ON A FIRST–COME, FIRST–SERVED BASIS UNTIL 21
THE MAXIMUM ANNUAL LIMIT , INCLUDING ANY UNUSED AMOUNTS C ARRIED OVER 22
FROM A PRIOR FISCAL YEAR, IS REACHED. 23
(2) ON OR BEFORE OCTOBER 1 EACH YEAR, MONTGOMERY COUNTY 24
SHALL REPORT TO THE MEMBERS OF THE MONTGOMERY COUNTY DELEGATION TO 25
THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE 26
GOVERNMENT ARTICLE, ON THE EXEMPTIONS FROM THE SYSTEM DEVELOPME NT 27
CHARGE IN MONTGOMERY COUNTY REQUIRED UNDER : 28
(I) SUBSECTION (B)(1) OF THIS SECTION FOR THE 29
IMMEDIATELY PRECEDIN G FISCAL YEAR, INCLUDING: 30
1. THE PROCESS USED TO IDENTIFY PUBLICLY 31
SPONSORED AND AFFORD ABLE HOUSING PROJECT S; 32 HOUSE BILL 1230 5
2. THE NUMBER OF PUBLIC LY SPONSORED AND 1
AFFORDABLE HOUSING P ROJECTS GRANTED EXEM PTIONS; AND 2
3. THE NUMBER OF PUBLIC LY SPONSORED OR 3
AFFORDABLE HOUSING U NITS INCLUDED IN EAC H PROJECT; AND 4
(II) SUBSECTION (B) SUBSECTION (B)(2) OF THIS SECTION FOR 5
THE CURRENT AND IMMEDIATELY PRECEDIN G FISCAL YEAR, INCLUDING: 6
(I) 1. THE APPLICATION PROC ESS FOR EACH EXEMPTI ON; 7
AND 8
(II) 2. FOR EACH EXEMPTION : 9
1. A. THE TOTAL NUMBER OF EXEMPTION APPLICATIO NS 10
RECEIVED; AND 11
2. B. THE TOTAL NUMBER AND AMOUNT OF EXEMPTIONS 12
GRANTED. 13
(D) ON OR BEFORE OCTOBER 1 EACH YEAR, PRINCE GEORGE’S COUNTY 14
SHALL REPORT TO THE MEMBERS OF THE PRINCE GEORGE’S COUNTY DELEGATION 15
TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1257 OF THE STATE 16
GOVERNMENT ARTICLE, ON THE EXEMPTIONS FR OM THE SYSTEM DEVELO PMENT 17
CHARGE IN PRINCE GEORGE’S COUNTY DESCRIBED UNDE R: 18
(1) SUBSECTION (B)(1) OF THIS SECTION FOR THE IMMEDIATELY 19
PRECEDING FISCAL YEA R, INCLUDING: 20
(I) THE PROCESS USED TO IDENTIFY PUBLICLY SPONSORED 21
AND AFFORDABLE HOUSI NG PROJECTS; 22
(II) THE NUMBER OF PUBLIC LY SPONSORED AND AFF ORDABLE 23
HOUSING PROJECTS GRA NTED EXEMPTIONS ; AND 24
(III) THE NUMBER OF PUBLIC LY SPONSORED OR AFFO RDABLE 25
HOUSING UNITS INCLUD ED IN EACH PROJECT ; AND 26
(2) SUBSECTION (B)(4) OF THIS SECTION FOR THE IMMEDIATELY 27
PRECEDING FISCAL YEA R, INCLUDING: 28
(I) THE APPLICATION PROC ESS FOR EACH EXEMPTI ON; AND 29 6 HOUSE BILL 1230
(II) FOR EACH EXEMPTION : 1
1. THE TOTAL NUMBER OF EXEMPTION APPLICATIO NS 2
RECEIVED; AND 3
2. THE TOTAL NUMBER AND AMOUNT OF EXEMPTIONS 4
GRANTED. 5
[(c)] (D) (E) On July 1, 1999, and July 1 of each succeeding year, the maximum 6
charge, as established in subsection (a)(2) of this section, may be changed by an amount 7
equal to the prior calendar year’s change in the Consumer Price Index published by the 8
Bureau of Labor Statistics of the United States Department of Labor for urban wage 9
earners and clerical workers for all items for the Washington, D.C. metropolitan area, or 10
the successor index. 11
[(d)] (E) (F) If the county councils do not agree on the amount of the system 12
development charge, the system development charge imposed during the previous year 13
shall continue in effect for the following fiscal year. 14
[(e)] (F) (G) If the system development charge established by the county councils is 15
less than the amount necessary to recover the full cost of constructing growth related 16
facilities, the Commission shall identify the part of the cost of that growth that will be paid 17
by current ratepayers as: 18
(1) a percentage of any rate increase; and 19
(2) the annual monetary amount on a typical residential customer’s annual 20
water and sewer bill. 21
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 22
1, 2025. 23
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.