Md. Code, Public Utilities, Title 25

Md. Code, Public Utilities, Title 25
in effect

Md. Code, Public Utilities § 25-101

(a) In this section, “industrial user” means: (1) an industry identified in the category “Division D – Manufacturing” of the North American Industry Classification System developed by the United States Office of Management and Budget; or (2) any industry in another class of significant waste producers that the Commission establishes by regulation. (b) Notwithstanding any other provision of this subtitle or Subtitles 3 through 5 of this title that requires a regulation, rate, or charge to be uniform throughout the sanitary district, if the Commission determines that in any area of the sanitary district the conditions for service from any of its systems, including the cost of instituting and maintaining the service, are substantially different from the conditions for service generally in the sanitary district, the Commission may define the area as a subdistrict and adopt a different regulation, rate, or charge to apply in that subdistrict. (c) Notwithstanding any other provision of this subtitle or Subtitles 3 through 5 of this title that requires a regulation, rate, or charge to be uniform throughout the sanitary district, if the Commission determines that conditions for service from any of its systems, including the cost of maintaining and operating the systems, to a property occupied by an industrial user are substantially different from the conditions for service generally in the sanitary district, the Commission may adopt regulations and set higher rates or charges or adopt more restrictive usage regulations for industrial users. (d) Before adopting any different regulation, rate, or charge under this section, the Commission shall: (1) publish notice of the proposed modification in at least one newspaper of general circulation in each county of the sanitary district; and (2) hold a public hearing on the necessity or advisability of a modification of the regulation, rate, or charge.

Md. Code, Public Utilities § 25-102

Except as provided in Subtitle 2 of this title, any law or regulation that applies in the sanitary district shall apply to any property for which the front foot benefit charge or ad valorem tax is suspended or exempted.

Md. Code, Public Utilities § 25-103

(a) The intent of this section: (1) is to declare the effect of the Acts of the General Assembly that have added area or property to the sanitary district on the conditions provided in this section; and (2) is not to amend any of the conditions established by these Acts. (b) Until the Commission begins, extends, or acquires a water or sanitary sewer system in an area or property added to the sanitary district and makes water or sewer service available to the properties in the area: (1) the Commission may not seek the imposition of an ad valorem tax on that area or property; and (2) the area or property added to the sanitary district is included in the sanitary district for all purposes of this division, except as a taxing district.

Md. Code, Public Utilities § 25-104

If the Commission determines that it is necessary or advisable to modify an existing rate, charge, or assessment, the Commission shall: (1) publish notice of the proposed modification in at least one newspaper of general circulation in each county of the sanitary district; and (2) hold a public hearing on the necessity or advisability of the proposed modification.

Md. Code, Public Utilities § 25-105

(a) (1) An appeal to the Public Service Commission of the reasonableness of any rate, charge, or assessment of the Commission may be taken by: (i) an individual who has a financial interest in the appeal; or (ii) the county council of Montgomery County or Prince George’s County. (2) Under regulations of the Public Service Commission, on appeal under paragraph (1) of this subsection, the Public Service Commission shall determine the reasonableness of the rate, charge, or assessment of the Commission. (b) An appeal under this section shall be taken by filing a written complaint within 30 days after the date on which the Commission set the rate or fixed the charge or assessment.

Md. Code, Public Utilities § 25-106

(a) Except for assessments and benefit charges authorized by Subtitle 2 of this title, this section applies to any fee or charge imposed by the Commission. (b) (1) A person may file a written claim with the Commission, in a form and containing the information and supporting documents required by the Commission, for a refund of the amount of a fee or charge the person paid to the Commission that exceeds the amount that is properly and legally payable. (2) If the property for which the fee or charge was paid has been transferred to a new owner after the payment, the new owner may file the claim for the refund. (c) (1) On the receipt of a claim for a refund under subsection (b) of this section, the Commission shall investigate the merits of the claim. (2) On the request of the claimant, the Commission, or the Commission’s designee, shall hold a hearing on the claim. (3) A claim shall be disallowed unless it is filed within 3 years after the date of the payment for which the refund is requested. (4) The Commission shall pay interest on any amount refunded under this section, calculated at the rate of 6% per year, starting 180 days from the date the claim was made. (d) If the Commission fails to reach a final decision on a claim within 180 days after the date the claim is filed, the failure shall be deemed a final rejection of the claim. (e) Within 30 days after the date of final action by the Commission on a claim for a refund filed under subsection (b) of this section, a petition for judicial review may be filed with the circuit court as provided in Title 7, Chapter 200 of the Maryland Rules. (f) Notwithstanding any other provision of this section, the Commission may refund a payment that the Commission determines was paid in excess of the amount that was properly and legally payable, whether or not the person who made the payment files a claim for a refund.

Md. Code, Public Utilities § 25-202

The construction, acquisition, replacement, or enlargement of, or the installation of a service connection to, a water main or sewer benefits each property that abuts on, is connected to, or is served by the water main or sewer.

Md. Code, Public Utilities § 25-203

(a) To impose a benefit charge for the construction of a water supply or sewer system, the Commission shall classify each property that abuts on a street, road, lane, alley, right–of–way, or easement in which a water main or sewer line is to be laid as: (1) agricultural; (2) industrial or business; (3) institutional; (4) multi–unit business; (5) multi–unit residential; (6) residential subdivision; or (7) small acreage. (b) The classification of a property by the Commission is final, subject only to revision: (1) at a hearing under § 25–204(a) of this subtitle; or (2) by the Commission if the use of the property changes.

Md. Code, Public Utilities § 25-204

(a) (1) When construction begins or within 12 months after completion of a water supply or sewer project, the Commission shall: (i) in accordance with a classification established under § 25–203 of this subtitle, impose a benefit charge on each property that abuts on the water main or sewer; and (ii) notify each property owner in writing of: 1. the classification of the owner’s property; 2. the benefit charge imposed on the property; and 3. the time and place of a hearing to contest the imposition of the charge. (2) The Commission may deliver the notice required under this subsection by: (i) mailing the notice to the last known address of the property owner; (ii) giving the notice in person to an adult occupying the property; or (iii) if the property is vacant or unimproved, posting the notice on the property. (b) (1) For each class of property, the Commission shall impose a benefit charge for water supply or sewer construction, or both, that is based on: (i) the approximate cost of construction as an integral part of the whole system; and (ii) 1. the number of front feet abutting on the street, road, lane, alley, right–of–way, or easement in which the water main or sewer is placed; or 2. for multi–unit classes, the number of units in or on the property that abut on the water main or sewer. (2) In accordance with paragraph (1) of this subsection and subject to paragraph (3) of this subsection, in imposing a front foot benefit charge the Commission: (i) for an irregularly shaped lot that abuts on a street, road, lane, alley, right–of–way, or easement in which there is or is being constructed a water main or sewer, shall use a front footage the Commission considers reasonable and fair; (ii) for all the lots in a block owned by the same property owner and appurtenant to a residence, may use a continuous front footage for all the lots regardless of the streets on which the lots face; (iii) for a lot with a front and rear on separate streets, may use a front footage on both the front and rear; and (iv) for a corner lot of less than 2 acres in the residential subdivision classification: 1. may not use a front footage on more than one side unless the corner lot abuts on two parallel streets; and 2. if the corner lot abuts on two parallel streets, shall use a front footage that is reasonable and fair, taking into consideration the front footage toward which the building on the lot would naturally face. (3) The Commission may impose a front foot benefit charge on the full front footage for a lot described in paragraph (2) of this subsection even if a water main or sewer does not extend along the full length of a boundary. (c) The benefit charge shall be: (1) unless otherwise provided in this subtitle, uniform for each classification of property in the sanitary district for any 1 year; (2) determined by the Commission as costs and conditions require; and (3) imposed once a year to begin on the January 1 or July 1 after the date of its imposition and may not be increased in that year. (d) (1) Beginning when the Commission imposes a benefit charge for a property, the Commission shall require the property owner to pay the benefit charge annually for a period of years equal to the period of maturity of the bonds the proceeds of which financed the construction of the water main or sewer. (2) If a property of the Housing Opportunities Commission of Montgomery County is subject to a benefit charge under this subtitle, the benefit charge shall be paid in the same manner as by a private property owner. (e) Each benefit charge imposed under this subtitle is a lien against the property that continues until the benefit charge is paid and the account is extinguished in accordance with this subtitle.

Md. Code, Public Utilities § 25-205

(a) (1) The Commission may not impose a front foot benefit charge on: (i) property owned by the State, a county, or a municipality; (ii) property in the sanitary district that is connected to or authorized by the Commission to be connected to a water or sewer system operated by: 1. a municipality; or 2. a water or sewer company under the jurisdiction of the Department of the Environment; (iii) property owned by a regularly organized volunteer fire department that is used for public purposes; or (iv) subject to paragraph (2) of this subsection, property classified as agricultural that is actually used for farming purposes, unless a connection is made to a water main or sewer running through or adjacent to the property. (2) The Commission may impose a reasonable front foot benefit charge on property classified as agricultural, which may not exceed the charge for 300 feet of front footage. (b) The Commission may suspend the imposition and collection of a front foot benefit charge: (1) with respect to a sewer line, for property otherwise subject to a front foot benefit charge that the Commission determines cannot obtain service from the sewer pipe on which the benefit charge would be based; (2) for construction of a water main if the owner of the property that is otherwise subject to the benefit charge is not permitted to connect to the water main because of a finding: (i) by the Commission that there is no sewer and the extension of an improved sewer system is not reasonably feasible; and (ii) by a county health department that a septic system would not be approved for the disposal of the water for which the connection is requested; or (3) if the property that is otherwise subject to the front foot benefit charge for a water main or sewer has a preexisting residential dwelling that is served by a well or septic system, until the property owner requests service from the water main or sewer. (c) (1) If a property is exempt from front foot benefit charges or if the Commission has suspended front foot benefit charges for a property and the property is no longer eligible for the exemption or suspension, the Commission shall: (i) classify the property in accordance with § 25–203 of this subtitle; and (ii) impose a front foot benefit charge at a rate and for a period of time equal to that of property that was originally classified or for which the Commission imposed benefit charges in the year of the suspension. (2) The Commission shall use money from front foot benefit charges imposed on property under paragraph (1) of this subsection to: (i) amortize bonds issued to construct water mains and sewers for which benefit charges were imposed under this subtitle; or (ii) construct other water mains and sewers for which benefit charges are imposed.

Md. Code, Public Utilities § 25-206

(a) This section applies only to a property owner: (1) whose property does not abut a water main or sewer; and (2) who has not previously paid a benefit charge for the construction of the water main or sewer. (b) The Commission: (1) shall allow a property owner to connect to a nonabutting water main or sewer; (2) shall classify the property and impose a front foot benefit charge to be paid by the property owner at the rate and for the same number of years as though the property abutted on a water main or sewer constructed in the year in which the connection is made; (3) when the connection is made, shall place the property owner in the same position as to all charges, rates, and benefits as if the property abutted on a newly constructed water main or sewer; (4) if a water main or sewer abutting on the property is subsequently constructed, may require the property owner to connect to the abutting line and discontinue service from the nonabutting line; or (5) while the property is in the same classification as when the nonabutting connection was made, shall allow the prior imposition of a front foot benefit charge to stand and may not impose a front foot benefit charge for the new abutting water main or sewer.

Md. Code, Public Utilities § 25-207

(a) In this section, “cost of construction” includes the cost of connecting a water main or sewer to the Commission system. (b) If a property owner applies for a water main or sewer in an area in which the Commission determines service is not economically feasible unless the applicant makes a substantial contribution to the cost of construction of the water main or sewer, the Commission may classify the applicant’s property together with adjacent or adjoining properties that could be readily served by the construction required by the applicant as a remote area. (c) The Commission may construct the water main or sewer after: (1) approving the application; (2) receiving payment from the applicant of the contribution necessary for the cost of construction; and (3) imposing the required front foot benefit charge. (d) (1) The Commission may contract with the applicant at the time of the contribution to refund part or all of the contribution from any front foot benefit charges imposed on the property for the water main or sewer subsequently constructed by the Commission and served through the lines of the applicant in the remote area. (2) The Commission shall determine the proportion of the contribution to be refunded and the maximum time of repayment, not to exceed 10 years.

Md. Code, Public Utilities § 25-208

When the Commission acquires an existing water or sewer system other than a municipal system, the Commission may impose a front foot benefit charge less than the uniform front foot benefit charge required in § 25–204 of this subtitle if: (1) the construction cost of the system has been added, wholly or partly, to the purchase price of the property that abuts on the system; and (2) the addition of the construction cost is a factor in the cost of the system to the Commission.

Md. Code, Public Utilities § 25-209

(a) A water or sewer connection benefit charge imposed by the Commission under this section is in addition to a benefit charge imposed under any other section of this subtitle. (b) (1) (i) When a benefit charge or portion of a benefit charge for a water main or sewer connection is made payable on an installment basis as provided in § 25–304(b) of this title, the deferred amount and interest shall be paid by an annual benefit charge in an amount and for the period of years necessary to amortize the account. (ii) Property subject to a benefit charge imposed under this section is subject to the benefit charge until payments have amortized the charge, including accrued interest. (2) The Commission shall allow a property owner subject to a benefit charge for the deferred portion of a connection benefit charge to extinguish the account by paying the principal and interest due up to the time of payment. (c) If a federal, State, county, or other governmental unit or municipality acquires property for public use that is subject to a benefit charge under this section, the benefit charge shall be paid and extinguished as provided in § 25–212 of this subtitle. (d) A benefit charge imposed under this section shall be collected as provided in § 25–214 of this subtitle. (e) To implement this section, the Commission may: (1) include in the sale of bonds the cost of making service connections that are paid on an installment basis; and (2) use any funds obtained from the sale.

Md. Code, Public Utilities § 25-210

(a) (1) When the Commission replaces or enlarges a water main or sewer to provide increased water or sewer service capability for abutting or connected property because of a change in the use or zoning classification of the property, a benefit charge for the construction of the replacement or enlarged system shall be: (i) imposed as provided in § 25–204 of this subtitle; (ii) collected as provided in § 25–214 of this subtitle; and (iii) redeemed as provided in § 25–211 of this subtitle. (2) Any unpaid portion of the initial benefit charge imposed for the original construction of the water main or sewer shall be included in the new benefit charge as an incremental charge to the single resulting benefit charge for the enlarged system only for the remaining years of the initial benefit charge. (b) The Commission may not impose an additional benefit charge under subsection (a) of this section for a property in the residential subdivision class that abuts on an enlarged water main or sewer and that is subject to, or was subject to and paid, a benefit charge for water main or sewer construction until the classification of the property is changed because of a change in use or zoning classification requested by the property owner.

Md. Code, Public Utilities § 25-211

(a) (1) For purposes of this section, the annual benefit charge for a property shall be calculated at a sum: (i) equal to the base rate applied to the classification for the property as it is used, disregarding any allowance for excess; but (ii) not less than the base rate applied to property in the residential subdivision classification. (2) At any time, a benefit charge may be extinguished or redeemed by payment to the Commission of a sum equal to: (i) the annual benefit charge multiplied by the number of years yet to run on the bonds that financed the construction of the water main or sewer on which the benefit charge was based; and (ii) less the interest calculated at the rate of interest on the bonds that financed the construction of the water main or sewer on which the benefit charge is based. (b) Notwithstanding subsection (a) of this section, if a benefit charge is paid and redeemed because the property is acquired by the State, a county, or other governmental unit under any law that requires redemption, the payment to the Commission: (1) shall be the capitalized amount of the actual benefit charge; but (2) may not be less than an amount calculated as if the property were in the small acreage classification, with the redemption amount calculated as provided in this section. (c) (1) On receiving a sum from the extinguishment or redemption of one or more front foot benefit charges, the Commission: (i) shall purchase and cancel one or more bonds from the series of bonds issued for the construction that was the basis of the front foot benefit charge; or (ii) may invest or use the sum to: 1. construct other water mains and sewers for which benefit charges are imposed; or 2. amortize bonds issued for the construction of water mains and sewers for which front foot benefit charges are imposed under this subtitle. (2) The Commission may make up a deficiency in the purchase of a bond or pay a premium from any available surplus funds. (3) The extinguishment or redemption of a benefit charge is conditional until the last year of maturity of the bonds from which proceeds the water mains or sewers were constructed. (4) If, after extinguishment or redemption, the use of the property changes to another classification that would yield a greater benefit charge than that used to calculate the sum to extinguish or redeem the benefit charge, the Commission may: (i) reclassify the property; (ii) calculate a benefit charge to give credit for the sum paid for the extinguishment or redemption; and (iii) reimpose the benefit charge for the remaining number of years until the bonds mature.

Md. Code, Public Utilities § 25-212

(a) Except as provided for the Housing Opportunities Commission of Montgomery County under § 25–204(d)(2) of this subtitle, when the State or a county or municipality, or a unit of the State or a county, acquires property for public use that is subject to a benefit charge imposed under this subtitle, the benefit charge shall be paid and extinguished by payment to the Commission of a sum calculated in accordance with § 25–211 of this subtitle. (b) When property is acquired without eminent domain, the Commission shall be paid the amount necessary to extinguish the benefit charge before the deed evidencing the transfer may be recorded in the land records of the county in which the property is located. (c) When property is acquired by eminent domain: (1) the Commission shall be named a party to the eminent domain proceedings and the jury shall make a separate award to the Commission of the amount necessary to extinguish the benefit charge; or (2) the condemning authority shall pay the Commission the amount necessary to extinguish the benefit charge at the same time the condemning authority pays the amount awarded to the property owner if: (i) by oversight or mistake, the Commission is not named a party to the proceedings; or (ii) the jury’s inquisition does not specify a separate award for the amount necessary to pay the benefit charge. (d) If the Housing Opportunities Commission of Montgomery County allows a benefit charge to become delinquent: (1) by the first month of the next fiscal year, the Montgomery County Council shall authorize and appropriate sufficient funds to pay the delinquent benefit charge and all penalties and interest on the charge; and (2) the Montgomery County Executive shall pay the appropriated funds to the Commission promptly.

Md. Code, Public Utilities § 25-213

(a) This section applies to: (1) an omission or mistake previously made by the Commission; or (2) a judgment or decree previously rendered on a property if front foot benefit charge payments have not been made on the property. (b) (1) When the Commission discovers an omission or mistake or within a reasonable time after a court renders a judgment or decree, the Commission may impose a front foot benefit charge at a rate and in a classification that it could have imposed originally or that a court orders, including any increases applied to the project of which the property is a part, if: (i) the Commission discovers that property subject to a front foot benefit charge: 1. mistakenly has not had a front foot benefit charge imposed; 2. has had the charge imposed but was listed in the wrong name; or 3. has had the charge imposed under an incorrect description; or (ii) a property owner did not receive notice as required by § 25–204 of this subtitle; or (iii) the court set aside the service of notice by judgment or decree. (2) The front foot benefit charge imposed under this section shall run for the period of years the benefit charge would have run if it had been imposed at the proper time or in the proper manner.

Md. Code, Public Utilities § 25-214

(a) This section applies to the collection of benefit charges for the Commission by the directors of finance of Prince George’s County and Montgomery County or by other tax collecting authorities in those counties. (b) Each year, for 30 days before the collection of taxes begins in Montgomery County and Prince George’s County, the Commission shall have access to the records of the treasury division in each county’s department or office of finance to inform each county: (1) regarding which properties or property owners are subject to a benefit charge and the annual benefit charge imposed on the property; (2) regarding each property on which the Commission has imposed a benefit charge that was not subject to State or county taxes; and (3) of the total benefit charge imposed for all properties in the county. (c) (1) (i) All laws relating to the collection of county taxes apply to the collection of a benefit charge. (ii) A benefit charge: 1. for purposes of collection, shall be treated as a county tax; 2. shall bear the same interest and penalties as a county tax; and 3. shall be advertised with, and in the same manner as, a county tax. (2) The director of finance shall collect a benefit charge in accordance with this section. (3) The director of finance: (i) shall refer a protest, objection, or complaint concerning a benefit charge to the Commission; and (ii) may not refund, change, or amend a benefit charge. (4) A property redeemed from a county tax sale or a property sold by the county council of Montgomery County or Prince George’s County after a final tax sale may not be redeemed or sold except on payment of the benefit charge due on the property. (5) A property subject to a delinquent benefit charge shall be sold for the delinquent benefit charge at the same time and in the same manner as property sold for delinquent county taxes. (d) (1) The director of finance shall: (i) print on the tax bill: “To Sanitary Commission benefit charge $....”; (ii) provide a space on the tax bill for the interest or penalty; (iii) make the proper entries on each tax bill mailed; and (iv) collect the amount specified on the bill for the benefit charge with the State and county taxes. (2) In Montgomery County, each property tax bill shall list separately any deferred water main or sewer connection benefit charges applicable to an assessed property. (3) Beginning June 1, 2013, in Prince George’s County, each property tax bill shall contain a notice of the number of annual payments remaining on the assessed property for the front foot benefit charge. (e) (1) On or before the 10th day of each month, the director of finance shall pay the Commission the amount of the benefit charges collected by the director of finance through the last day of the preceding month. (2) If the director of finance does not pay the amount due the Commission as provided in paragraph (1) of this subsection, the amount due shall bear a penalty of 1% per month. (3) The director of finance is personally liable for failure to pay the amount due to the Commission. (4) The county councils of Montgomery County and Prince George’s County shall require the bonds of its respective director of finance to be conditioned on payment to the Commission of the amount collected under this section. (f) (1) By December 1 of each year, the Commission shall pay Montgomery County and Prince George’s County a reasonable amount for the services of its respective director of finance. (2) The payment provided for in paragraph (1) of this subsection shall be included as an item in the Commission’s operating budget.

Md. Code, Public Utilities § 25-301

(a) For each service connection under § 23–202 of this article, the Commission shall set a connection charge that the Commission determines to be reasonable. (b) Subject to a yearly revision by the Commission: (1) for connections of the sizes and classes for which the average cost reasonably may be ascertained, the connection charge shall be uniform throughout the sanitary district; and (2) for all other connections, the connection charge shall be the actual cost. (c) All property owners shall pay the connection charge to the Commission before the actual connection of any line on private property is made. (d) Of the total revenue over actual cost that is derived from the connection charges, the Commission shall: (1) retain one–half of the revenue in a contingency fund for repair, replacement, or any extraordinary expense in the maintenance and operation of water supply or sewer systems under the control of the Commission; and (2) apply one–half of the revenue to pay the Commission’s debt service for outstanding debts.

Md. Code, Public Utilities § 25-302

(a) If the Commission determines that it is feasible, reasonable, and economical, the Commission may place in a separate class a water or sanitary sewer connection that is made to a water or sewer line installed in a street, road, alley, or right–of–way that has not been paved or otherwise improved to avoid the necessity of replacing pavement or street improvements on installation of the connection. (b) (1) The Commission may: (i) impose a connection charge based on the actual cost of the connections, including the Commission inspection charge; or (ii) provide for the installation of the connections, including taps into a main or line, by the applicant or at the applicant’s cost, under supervision and inspection of the Commission. (2) The Commission may authorize any class of connection from its water line or sanitary sewer line to be constructed beyond the property line of the property to be served if the connecting line is constructed at the same time from the main to the structure on the property to be served. (c) The property owner shall pay the entire expense of the construction and maintenance of the part of the connecting line from the property line into the property.

Md. Code, Public Utilities § 25-303

(a) If the Commission provides for a class of connections for unimproved areas as provided in § 25–302 of this subtitle: (1) the charges for water and sanitary sewer connections to similar properties in developed areas may be based on the Commission’s calculation, based on its experience, of an average cost for connections in both unimproved and developed areas; and (2) the Commission may specify this connection charge as the uniform connection charge provided in § 25–301 of this subtitle for connections installed by the Commission in developed areas. (b) Any difference between the actual cost of the connections and the uniform connection charge shall be paid from the water service charge or a sewer usage charge, as applicable.

Md. Code, Public Utilities § 25-304

(a) (1) The Commission may provide for the installation of the water or sewer connection as part of the construction of a water or sewer lateral line where the property to which the connection is made has not been assessed a front foot benefit charge under § 25–203 of this title. (2) If an installation is made under paragraph (1) of this subsection, the Commission shall collect the deferred part of the connection charge by the benefit charge assessment procedure under §§ 25–204(e) and 25–209 of this title. (b) (1) If the water or sewer lateral line has been constructed or where the property for which an application for connection is made has been assessed a benefit charge under § 25–204 of this title and the property is in an agricultural, small acreage, or residential class, the Commission may provide for an installment payment method for all or a part of the water and sewer connection charges for single family residential units with individual water or sewer connections. (2) If an installment payment method is established and chosen by an applicant for connection: (i) the installation of the connection is an additional benefit to the property; and (ii) the applicant is liable for payment for the additional benefit until the deferred charge has been amortized under the schedule that the Commission requires. (3) The connection charge benefit assessment is payable as provided in §§ 25–204(e) and 25–209 of this title.

Md. Code, Public Utilities § 25-305

In adopting or amending any regulation under this subtitle, and in establishing or modifying water or sewer connection charges under §§ 25–302 and 25–303 of this subtitle, the Commission shall comply with the requirements of § 17–403 of this article.

Md. Code, Public Utilities § 25-401

(a) In this subtitle the following words have the meanings indicated. (b) “Apartment unit” means a single family housing unit that: (1) is one of multiple units within a building; (2) contains at least one full bath and one full kitchen; and (3) does not contain more than two toilets. (c) “Fixture unit” means the assigned value for a plumbing fixture or group of plumbing fixtures, as set forth in the Commission’s plumbing and gas fitting regulations, that is standardized with a common lavatory having an assigned value of one based on its probable discharge into the drainage system or hydraulic demand on the water supply. (d) “New service” means: (1) a first time connection of a property to the Commission water or sewer system, including: (i) a direct connection of an improvement or building; or (ii) a connection of the improvement or building through an existing on–site system; or (2) a new connection or increased water meter size for a property previously or currently served by the Commission if the new connection or increased meter size is needed because of a change in the use of the property or an increase in demand for service at the property. (e) “Property” means an improvement or a building on a lot or parcel of land that contains plumbing fixtures. (f) “Toilet” means a water closet, as set forth in the Commission’s plumbing and gas fitting regulations.

Md. Code, Public Utilities § 25-402

(a) In addition to any other charges authorized under this division, the Commission may impose a system development charge that shall be paid by an applicant for new service. (b) The system development charge shall be paid as follows: (1) for residential properties: (i) 50% at the time the plumbing permit application is filed; and (ii) 50% within 12 months after the earlier of the date on which a plumbing permit application is filed or on transfer of title to the property; and (2) for other properties, 100% at the time the plumbing permit application is filed. (c) When the applicant files the plumbing permit application, the applicant shall deposit with the Commission security: (1) in the form of an irrevocable letter of credit; (2) in the form of a financial guaranty bond; or (3) in a form the Commission establishes and approves under its regulations.

Md. Code, Public Utilities § 25-403

(a) (1) Each year the Montgomery County Council and the Prince George’s County Council shall meet to determine the amount of the system development charge. (2) The amount of the system development charge for a particular property: (i) shall be based on the number of plumbing fixtures and the assigned values for those fixtures as set forth in the Commission’s plumbing and gas fitting regulations; (ii) except as provided in item (iii) of this paragraph and subsection (e) of this section, may not exceed $200 per fixture unit; and (iii) for residential properties with five or fewer toilets, shall be based on the number of toilets per dwelling unit and: 1. for each apartment unit, may not exceed $2,000; 2. for dwellings with one or two toilets, may not exceed $3,000; 3. for dwellings with three or four toilets, may not exceed $5,000; 4. for dwellings with five toilets, may not exceed $7,000; and 5. for dwellings with more than five toilets, shall be calculated on a fixture unit basis. (3) When determining the system development charge, the county councils shall consider the actual cost of construction of Commission facilities. (b) When determining the system development charge, under definitions established jointly and agreed on by the county councils, the county councils: (1) shall grant a full or partial exemption from the charge for public sponsored or affordable housing as jointly defined and agreed on by the county councils; (2) for properties located in Montgomery County only, shall grant a full or partial exemption from the charge for: (i) 1. revitalization projects; 2. property used by a community–based organization that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code and has the primary mission and purpose of providing recreational and educational programs and services to youth, if: A. the property is used primarily for recreational and educational programs and services to youth; and B. the exemption amount is limited to $80,000; 3. property used primarily for child care or after–school care; or 4. property used primarily for programs and services for developmentally disabled individuals; and (ii) under definitions set forth by the county councils: 1. residential property located in a planned retirement community as defined in the zoning ordinance of Montgomery County; 2. elderly housing other than that included in item 1 of this item; and 3. properties used for manufacturing or biotechnology research and development; (3) for properties located in Montgomery County only, may not require that an applicant for an exemption own the property for which an exemption is sought; and (4) for properties located in Prince George’s County only, may grant a full or partial exemption from the charge for: (i) 1. revitalization projects; 2. property owned by a community–based organization that is exempt from taxation under § 501(c)(3) of the Internal Revenue Code and has the primary mission and purpose of providing recreational and educational programs and services to youth, if: A. the property is used primarily for recreational and educational programs and services to youth; and B. the exemption amount is limited to $80,000; 3. property used primarily for child care or after–school care; or 4. property used primarily for programs and services for developmentally disabled individuals; and (ii) under definitions set forth by the county councils: 1. residential property located in a mixed retirement development as defined in the zoning ordinance of Prince George’s County; 2. elderly housing other than that included in item 1 of this item; or 3. properties used for manufacturing or biotechnology research and development. (c) (1) Montgomery County shall approve applications for the exemptions from the system development charge required under subsection (b) of this section on a first–come, first–served basis until the maximum annual limit, including any unused amounts carried over from a prior fiscal year, is reached. (2) On or before October 1 each year, Montgomery County shall report to the members of the Montgomery County Delegation to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the exemptions from the system development charge in Montgomery County required under: (i) subsection (b)(1) of this section for the immediately preceding fiscal year, including: 1. the process used to identify publicly sponsored and affordable housing projects; 2. the number of publicly sponsored and affordable housing projects granted exemptions; and 3. the number of publicly sponsored or affordable housing units included in each project; and (ii) subsection (b)(2) of this section for the immediately preceding fiscal year, including: 1. the application process for each exemption; and 2. for each exemption: A. the total number of exemption applications received; and B. the total number and amount of exemptions granted. (d) On or before October 1 each year, Prince George’s County shall report to the members of the Prince George’s County Delegation to the General Assembly, in accordance with § 2–1257 of the State Government Article, on the exemptions from the system development charge in Prince George’s County described under: (1) subsection (b)(1) of this section for the immediately preceding fiscal year, including: (i) the process used to identify publicly sponsored and affordable housing projects; (ii) the number of publicly sponsored and affordable housing projects granted exemptions; and (iii) the number of publicly sponsored or affordable housing units included in each project; and (2) subsection (b)(4) of this section for the immediately preceding fiscal year, including: (i) the application process for each exemption; and (ii) for each exemption: 1. the total number of exemption applications received; and 2. the total number and amount of exemptions granted. (e) On July 1, 1999, and July 1 of each succeeding year, the maximum charge, as established in subsection (a)(2) of this section, may be changed by an amount equal to the prior calendar year’s change in the Consumer Price Index published by the Bureau of Labor Statistics of the United States Department of Labor for urban wage earners and clerical workers for all items for the Washington, D.C. metropolitan area, or the successor index. (f) If the county councils do not agree on the amount of the system development charge, the system development charge imposed during the previous year shall continue in effect for the following fiscal year. (g) If the system development charge established by the county councils is less than the amount necessary to recover the full cost of constructing growth related facilities, the Commission shall identify the part of the cost of that growth that will be paid by current ratepayers as: (1) a percentage of any rate increase; and (2) the annual monetary amount on a typical residential customer’s annual water and sewer bill.

Md. Code, Public Utilities § 25-404

(a) (1) The Commission shall deposit all funds collected under the system development charge into a system development charge fund. (2) The system development charge fund is a special fund that may not revert to general funds of the Commission. (b) The Commission may use the funds collected from the system development charge only to: (1) pay for new treatment, transmission, and collection facilities, the need for which is directly attributable to the addition of new service and the construction of which began after July 1, 1993; or (2) amortize any bond that is issued in connection with the construction of those new facilities. (c) Other costs of enhancement, maintenance, or environmental regulation on existing or new systems shall be borne equally by all ratepayers.

Md. Code, Public Utilities § 25-405

(a) The Commission may allow a developer to design and construct any on–site or off–site facility necessary for the developer’s project if the facility is: (1) in the Commission Capital Improvement Program and the 10–year Comprehensive Water Supply and Sewerage System Plan adopted by one of the county councils; (2) a major project included in the Commission Capital Improvement Program; or (3) a project that includes a sewer main or water main that: (i) provides only local service; (ii) is 2,000 feet or less; (iii) has a diameter of: 1. 15 inches or more if it is a sewer main; or 2. 16 inches or more if it is a water main; and (iv) is built to avoid unnecessary and uneconomical duplication when a major project is constructed. (b) A facility constructed under this section shall be designed, constructed, and inspected in accordance with: (1) the standards used by the Commission; and (2) all applicable laws, regulations, and written policies of the Commission. (c) After the Commission approves a facility constructed by a developer under this section, the Commission shall: (1) accept the facility as part of the Commission system; and (2) subject to subsection (d) of this section, grant the developer a credit against any charge imposed under this subtitle in an amount equal to the cost of constructing the facility. (d) The Office of the Inspector General shall review and approve the costs incurred by the developer. (e) The Commission and the developer shall enter into an agreement that incorporates the provisions of this section. (f) If the Commission rejects a developer’s request to design and construct facilities under this section, the Commission shall explain in writing to the developer the reasons for the rejection. (g) (1) The Commission shall submit a report at the end of each fiscal year to the Montgomery County and Prince George’s County Delegations to the General Assembly and to the county councils of Montgomery County and Prince George’s County. (2) The report shall state the number of requests made by developers under this section, including: (i) the number of acceptances and rejections by the Commission; and (ii) the justification for any rejections.

Md. Code, Public Utilities § 25-501

(a) The Commission shall set a service rate that the Commission considers necessary to provide funds for: (1) maintaining, repairing, and operating its water supply and sewer systems, including the overhead expense and depreciation allowance; and (2) making any payments to the District of Columbia, as specified in this title. (b) The service rate: (1) shall be chargeable against all properties for a connection with any line owned by the Commission; (2) shall be uniform throughout the sanitary district; and (3) may be changed as necessary.

Md. Code, Public Utilities § 25-501.1

§25–501.1. (a) (1) In this section the following words have the meanings indicated. (2) “Indirect customer” means an individual who: (i) receives water service or sewer service or both from the Commission; but (ii) is not billed by the Commission for the service. (3) “Ratepayer” means an individual who receives a bill directly from the Commission for water service or sewer service or both. (b) (1) Notwithstanding any other law, on or before July 1, 2015, the Commission shall establish a Customer Assistance Program to provide financial assistance with water and sewer bills to eligible ratepayers. (2) The Commission shall establish income eligibility standards for a ratepayer to receive financial assistance under this subsection. (3) Financial assistance provided under this subsection may include the reduction or waiver of fees, including late fees. (c) (1) The Commission may establish an Indirect Customer Assistance Program. (2) The purpose of the program is to provide financial assistance to eligible indirect customers for water and sewer service. (3) If the Commission establishes a program under this subsection, the Commission shall establish income eligibility standards and a process for an indirect customer to receive financial assistance under the program. (d) (1) The Customer Assistance Program and the Indirect Customer Assistance Program shall be funded from Commission revenues. (2) Income eligibility standards for the Customer Assistance Program and the Indirect Customer Assistance Program shall be applied uniformly throughout the sanitary district.

Md. Code, Public Utilities § 25-502

(a) (1) Except as provided in this subtitle, the service rate for water shall consist of: (i) a minimum or a ready to serve charge; and (ii) a charge for water used. (2) The minimum or ready to serve charge shall be based on the size of the meter on the water connection leading to the property. (3) The charge for water used shall be based on the amount of water passing the meter during the period between the last two readings. (4) The meter shall be placed on each water connection by and at the expense of the Commission. (b) The Commission may provide that a specified minimum number of gallons of water: (1) be included in the minimum or ready to serve charge without additional service charges for the water; and (2) may vary with the size of the meter involved. (c) (1) If the Commission furnishes water to a federal, State, or other unit of government that is exempt from benefit charges or ad valorem taxes imposed under this division, the Commission shall set the water service charge at an amount the Commission considers necessary and reasonable. (2) In setting the charge, the Commission shall take into consideration the general tax, the benefit charge imposed in the sanitary district, and the regular service rate as provided in subsections (a) and (b) of this section. (d) (1) If, because of public necessity, the Commission has extended the Commission’s water system outside the boundaries of the sanitary district to render a needed service, the Commission may pay for the extension out of its funds. (2) The Commission may set any charge that it considers reasonable for all connections to its water system made outside of the sanitary district. (3) In setting the charge the Commission shall take into consideration the general tax and front foot benefit charge imposed in the sanitary district. (4) The Commission has the same authority over connections made to the Commission’s water system outside the sanitary district as it has in the sanitary district. (e) (1) On request by the Mayor and City Council of the City of Laurel, the Commission shall furnish water from the Patuxent River supply to the city. (2) The service rate for the water supplied by the Commission to the City of Laurel shall be at the actual cost of supplying the water to the city’s water system. (3) The Mayor and City Council of the City of Laurel may construct a system to receive water from the Commission to the nearest convenient point to the Commission’s Patuxent River supply. (4) The connection point between the Commission’s system and the city’s water system must be at or near the Commission’s dam.

Md. Code, Public Utilities § 25-503

(a) Except as otherwise provided in subsections (c), (d), and (e) of this section, the Commission shall impose a sewer usage charge, based on the water consumption of each property, against all properties connected to the Commission’s sewer system to provide funds for: (1) payment of principal and interest for bonds authorized under § 22–102(a) and (b) of this article; (2) maintenance of the sewer system and disposal facilities, including the overhead expense and depreciation allowance; and (3) payments to the District of Columbia for disposal of sanitary district sewage. (b) (1) The Commission shall impose a sewer usage charge against the property of a federal, State, or other unit of government that is: (i) exempt from front foot benefit charges and ad valorem taxes imposed under this division; and (ii) connected to the Commission’s sewer system. (2) In setting the charge, the Commission shall take into consideration the general tax, the front foot benefit charge imposed in the sanitary district, and the regular sewer usage charge as provided in this section. (c) (1) If the Commission furnishes sewer service to a property that is not connected to the Commission’s water system, the Commission shall impose a sewer usage charge that: (i) fairly and ratably compensates the Commission for the use of the sewer system; and (ii) takes into consideration the sewer usage on the property and the sewer usage charge applicable to similar properties connected to the water system. (2) The Commission shall bill for the amount of the sewer usage charge under this subsection monthly, twice a year, or once a year. (d) (1) Subject to paragraphs (2) and (5) of this subsection, if water furnished by the Commission to a lot or parcel of land is used exclusively for any purpose that results in the water not entering the Commission’s sewer system, the Commission may not impose a sewer usage charge to the owner, tenant, or occupant of a lot or parcel of land for the amount of the water furnished by the Commission that does not enter the Commission’s sewer system. (2) The owner, tenant, or occupant of a lot or parcel of land exempt under paragraph (1) of this subsection shall pay the Commission: (i) the cost of installing a separate metered connection; and (ii) an annual amount equal to the Commission’s annual water service charge for the size of the meter installed. (3) The Commission shall determine the location for the installation of the required meter. (4) The Commission may adopt regulations regarding the maintenance and control of the meter. (5) The sewer usage charge for properties under paragraph (1) of this subsection shall be based on the total amount of water used as determined under § 25–502(a) and (b) of this subtitle, less the amount of separately metered water. (e) (1) A commercial, industrial, or multiresidential property may use a separate metered connection as provided in subsection (d) of this section, even though a portion of the separately metered water enters the sewer system of the Commission, provided that the owner, tenant, or occupant of the property requests to be billed according to a formula determined by the Commission. (2) The formula determined by the Commission under paragraph (1) of this subsection shall: (i) credit the owner, tenant, or occupant for separately metered water not entering the sewer system of the Commission; and (ii) be consistent with: 1. manufacturers’ engineering standards for the class of equipment using the separately metered water supplied by the Commission; or 2. industry standards for the class of operations using the separately metered water supplied by the Commission. (3) The sewer usage charge for properties under paragraph (1) of this subsection shall be based on the sum of: (i) the total amount of water used as determined under § 25–502(a) and (b) of this subtitle, less the amount of separately metered water; and (ii) the amount of separately metered water as adjusted by the formula described in paragraph (2) of this subsection. (f) This section may not be construed to invalidate an existing contract between the Commission and a municipality located in the sanitary district without the consent of the municipality.

Md. Code, Public Utilities § 25-504

(a) The Commission: (1) may provide for the billing and collection of the water and sewer usage charges on an estimated basis for periods of 6 months or less, based on the historical daily average consumption calculated from actual previous usage; (2) shall read the meter at least once every 6 months; and (3) (i) shall base the final bill for the 6–month period on the actual consumption adjusted by previous estimates, if the meter had not been read because it was inaccessible; (ii) shall base the final bill for the 6–month period on the historical daily average consumption, calculated from actual previous usage, if a final reading cannot be made because: 1. the meter malfunctioned; 2. the meter had been taken out of service for repairs, maintenance, or water system relining purposes; or 3. there was theft of service; (iii) may modify the historical daily average consumption calculation based on appropriate evidence submitted by the owner; and (iv) may not base a final bill on estimated usage for two consecutive 6–month periods. (b) (1) (i) The Commission shall bill for the amount of water and sewer usage charges to each property served monthly, every other month, four times a year, or twice a year, as the Commission determines. (ii) 1. It is the intent of the General Assembly that the Commission shall bill on a fixed periodic basis, such as monthly or quarterly billing, without the use of estimated billing. 2. Subsubparagraph 1 of this subparagraph may not be construed to endorse any particular technology or approach to implementing the intent of the General Assembly. (2) On receipt each bill is payable to the Commission. (c) (1) A late payment charge of 5% of the unpaid charges shall be added and collected as part of the bill if: (i) the Commission sends out a bill for water and sewer usage charges in the regular course of business; (ii) for a service period of less than 3 months, the bill is not paid 20 days from the date of sending; or (iii) for a service period of 3 months or more, the bill is not paid 30 days from the date of sending. (2) The late payment charge is in addition to and not in substitution for or derogation of any other right or remedy granted to the Commission by any other law. (d) (1) If a bill is not paid within 30 days after the date of sending, after leaving written notice on the premises or mailing notice to the owner’s last known address, the Commission shall turn off the water to the property. (2) The water may not be turned on again until the bill, any late payment penalty charges as authorized by law, and the cost incurred in shutting off and restoring the water supply are paid. (e) If a bill is not paid within 60 days after the date of sending, the bill shall be collected against the owner of the property served in the same manner as other debts are collected in Montgomery County and Prince George’s County. (f) (1) This subsection applies only to property subject to a condominium regime established under Title 11 of the Real Property Article. (2) Notwithstanding any other law, if the Commission directly bills the governing body of a condominium or a person designated by the governing body of a condominium for water or sewer usage charges for all or a portion of the units in a condominium property, and a charge is in default for at least 60 days, the Commission shall post notice conspicuously at or near the entry to the common area of the condominium. (3) The Commission may enter onto the common area of a condominium property at a reasonable time to post the notice required under this subsection. (g) The provisions of subsections (b), (d), (e), and (f) of this section that relate solely to sewer usage charges may not be construed to invalidate an existing contract between the Commission and a municipality located in the sanitary district without the consent of the municipality. (h) On or before November 1, 2026, and each year thereafter, the Commission shall report to the county councils for Montgomery County and Prince George’s County the total number of customers in the immediately preceding year that reported bills exceeding the limits for high bill adjustments under the Washington Suburban Sanitary Commission Code of Regulations.

Md. Code, Public Utilities § 25-505

(a) (1) In this section the following words have the meanings indicated. (2) “Acquiring authority” means the State, Montgomery County, Prince George’s County, or any municipality or unit of the State, Montgomery County, or Prince George’s County. (3) “Bill for water and sewer usage charges” includes, if applicable, the late payment penalty provided under § 25–504(c) of this subtitle. (b) (1) Before acquiring property in the sanitary district, an acquiring authority shall: (i) determine if any bill for water and sewer usage charges is outstanding against the property; and (ii) require the payment of any outstanding bill for water or sewer charges on the property before acquiring the property. (2) If a bill for water and sewer usage charges is not paid before an acquiring authority acquires the property, the acquiring authority shall: (i) deduct the amount of the bill from the purchase price of the property; and (ii) pay the amount of the bill over to the Commission. (3) If the bill for water or sewer usage charges is not paid when the acquisition of the property is completed, the acquiring authority: (i) is responsible for the bill; and (ii) shall pay the bill to the Commission on demand.

Md. Code, Public Utilities § 25-506

(a) In this section, “charitable institution” means an institution: (1) that is located in Montgomery County or Prince George’s County; and (2) whose purpose is primarily charitable. (b) Except as provided in subsection (c) of this section, if a charitable institution does not discriminate against the entrance or care of residents of Montgomery County or Prince George’s County, the Commission: (1) shall supply without cost up to 100 gallons of water per day for each resident of the charitable institution; and (2) may not charge the charitable institution a fee for sewer usage for the water supplied under item (1) of this subsection. (c) (1) The charitable institution shall install and maintain a water meter at its own cost. (2) The Commission may charge the charitable institution for: (i) the cost of reading the water meter; and (ii) sewer usage and water used in excess of 100 gallons per day for each resident of the charitable institution.

Md. Code, Public Utilities § 25-507

(a) This section may not be construed to invalidate a contract between the Commission and a municipality located in the sanitary district without the consent of the municipality. (b) Except as provided in subsection (c) of this section, the Commission shall charge and collect its service rate for water, including a ready to serve charge, for all water used by: (1) the State; (2) Montgomery County; (3) Prince George’s County; and (4) a municipality in Montgomery County or Prince George’s County. (c) Notwithstanding any other law, a fire department or rescue squad that is recognized by Montgomery County or Prince George’s County or that is maintained and operated by a municipality in Montgomery County or Prince George’s County is exempt from all Commission water and sewer usage charges and meter service charges.

Md. Code, Public Utilities § 25-508

(a) This section applies only in Prince George’s County. (b) There is an Office of Prince George’s County Ombudsman in the Commission. (c) The Prince George’s County Executive, with the approval of the Prince George’s County Council, shall appoint an Ombudsman. (d) (1) (i) Prince George’s County shall: 1. pay the Ombudsman’s salary; 2. provide to the Ombudsman any benefits available to other employees of Prince George’s County; and 3. provide funding for the Office of the Ombudsman. (ii) The county may pay for any legal expenses incurred by the Ombudsman, as provided in the county budget. (2) The Prince George’s County Council shall determine the salary of the Ombudsman. (3) While holding office, the Ombudsman may participate in any Commission program of group health, life, or disability insurance to the same extent and under the same terms as other Commission officers and employees. (e) The Ombudsman may represent the interests of a Prince George’s County residential or commercial customer who files a written claim with the Commission for: (1) a refund of a payment on a bill for water and sewer usage charges that exceeds the amount that is properly and legally payable; or (2) a reduction in a bill for water and sewer usage charges that exceeds the amount that is properly and legally payable that has not yet been paid. (f) The Ombudsman: (1) shall: (i) receive a copy of, and review, any written claim filed with the Commission under § 25–106(b) of this title; (ii) investigate the merits of the claim; (iii) attend any hearing held in accordance with § 25–106(c)(2) of this title and present any findings and recommendations on the merits of the claim during the hearing; and (iv) prepare a written statement of findings and recommendations on the claim and provide copies of the statement to the Commission and the claimant; and (2) may represent the customer in any appeal process. (g) Notwithstanding any other provision of this division, as to Prince George’s County residential customers, if all undisputed bills for water and sewer usage charges are paid when due, the Commission may not interrupt service during the pendency of a written claim filed for a reduction in a bill for water and sewer usage charges that exceeds the amount that is properly and legally payable.
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://mgaleg.maryland.gov/mgawebsite/Laws/StatutesFetched: 10/16/2026