Title 17. Commission — Subtitle 2. Legal and Financial Affairs
Statutes in effect as of October 1, 2026.
Md. Code Ann., Pub. Util. § 17-201 (2026)
Title 17. Commission
Subtitle 2. Legal and Financial Affairs
§ 17–201LinkCopy Citation
(a)
(1)
The Commission is a body corporate.
(2)
The Commission may:
(i)
use a common seal;
(ii)
sue and be sued; and
(iii)
do any other corporate act for the purpose of carrying out this division.
(b)
(1)
The Commission shall certify to the county councils of Montgomery County and Prince George’s County a tax rate that will, when imposed and collected in accordance with § 22–106 of this article, produce an amount sufficient to satisfy:
(i)
a judgment against the Commission, including related costs and attorney’s fees; or
(ii)
a settlement agreement to resolve threatened or pending litigation, including related costs and attorney’s fees.
(2)
The Commission shall certify the tax rate under paragraph (1) of this subsection at the beginning of the taxable year for property taxes of the county councils of Montgomery County and Prince George’s County immediately following the date of the judgment or settlement agreement described in paragraph (1) of this subsection.
(3)
The tax rate described in this subsection is in addition to any tax required under this division for interest, serial bonds, or sinking fund requirements.
(c)
All acts, orders, and regulations previously passed by the Commission while sitting in the District of Columbia are ratified and shall be given the same force and effect as if passed in the State.
Md. Code Ann., Pub. Util. § 17-202 (2026)
Title 17. Commission
Subtitle 2. Legal and Financial Affairs
§ 17–202LinkCopy Citation
(a)
The Commission:
(1)
before January 15 of each year, shall prepare capital and operating budgets for the next fiscal year that shall include projects and contracts authorized under §§ 17–204 and 17–205 of this subtitle;
(2)
shall make available to the public, on request, copies of the budgets described in item (1) of this subsection;
(3)
before February 15 of each year, shall hold a public hearing on the proposed capital and operating budgets after giving at least 21 days’ notice of the hearing by publication in at least two newspapers of general circulation in Montgomery County and two newspapers of general circulation in Prince George’s County;
(4)
on or before March 1 of each year, shall submit to the county executives of Montgomery County and Prince George’s County the proposed capital and operating budgets for the next fiscal year, including the record of any public hearing on the proposed capital or operating budget held by the Commission;
(5)
shall identify the sources of revenue allocable to each proposed expenditure;
(6)
shall propose a complete schedule of rates for water service charges, sewer usage charges, and ad valorem taxes that the Commission considers necessary to finance the capital and operating budgets;
(7)
shall certify the amount necessary to be raised for the next fiscal year for debt service payments on all outstanding bonds and notes of the Commission; and
(8)
between March 1 and April 1 of each year, may submit to the county executives of Montgomery County and Prince George’s County amendments to the proposed capital or operating budget, including a declaration of need identifying the sources of revenue allocable to the proposed amendments.
(b)
The county executives of Montgomery County and Prince George’s County shall submit to the respective county council:
(1)
on or before March 15 of each year, the proposed capital and operating budgets, including:
(i)
recommendations on the proposed capital and operating budgets; and
(ii)
the record of any public hearing on the capital or operating budget held by the Commission; and
(2)
any amendments to the proposed capital and operating budgets with the county executive’s recommendations within 10 days after receipt of the amendments.
(c)
(1)
The county councils of Montgomery County and Prince George’s County:
(i)
after giving public notice, may hold public hearings on the proposed capital and operating budgets not earlier than 21 calendar days after receipt of the capital and operating budgets from the respective county executive;
(ii)
may add to, delete from, increase, or decrease an item of the capital or operating budget;
(iii)
on or before May 15 of each year, shall submit any proposed changes to the capital or operating budgets to the other county council for review and concurrence; and
(iv)
on or before June 1 of each year, shall approve the capital and operating budgets and submit them to the Commission.
(2)
(i)
If the county councils fail to concur in a change with respect to any item in the capital or operating budget on or before June 1 of each year, the failure to concur constitutes approval of the item as submitted by the Commission.
(ii)
If the county councils fail to approve the capital and operating budgets on or before June 1 of each year, the proposed capital and operating budgets of the Commission are deemed approved.
(d)
(1)
The Commission may submit detailed proposed supplements to the approved capital and operating budgets to the county executives of Montgomery County and Prince George’s County.
(2)
Within 10 days after receipt of a proposed budget supplement, each county executive shall submit the proposed budget supplement, including recommendations, to the respective county council.
(3)
Each county council:
(i)
may hold public hearings on the proposed budget supplement; and
(ii)
may add to, delete from, increase, or decrease the proposed budget supplement.
(4)
The failure of the county councils to jointly approve or amend the proposed budget supplement within 90 days after the date that the Commission submits the proposed budget supplement to the county executives constitutes disapproval of the supplement as submitted by the Commission.
(e)
(1)
On submission of the approved capital and operating budgets the county councils of Montgomery County and Prince George’s County may jointly recommend to the Commission rates for:
(i)
water service charges;
(ii)
sewer usage charges; and
(iii)
ad valorem taxes.
(2)
(i)
On receipt of the capital and operating budgets and recommendations from the county councils, the Commission shall approve a rate schedule.
(ii)
In approving a rate schedule the Commission shall consider the proposed rate changes jointly recommended by the county councils.
(3)
Subject to § 25–101 of this article, the rates for water service charges and sewer usage charges shall be uniform throughout the sanitary district.
Md. Code Ann., Pub. Util. § 17-202.1 (2026)
Title 17. Commission
Subtitle 2. Legal and Financial Affairs
§ 17–202.1LinkCopy Citation
(a)
(1)
On or before November 1, 2025, the Commission shall submit the following information to the county councils of Montgomery County and Prince George’s County and, in accordance with § 2–1257 of the State Government Article, the General Assembly:
(i)
a long–range comprehensive financial plan that:
(1)
is developed by the Commission in conjunction with an independent financial advisor; and
(2)
meets the requirements of subsection (b) of this section; and
(ii)
any updated Commission policies relating to financial management.
(2)
On or before June 1, 2026, and every 5 years thereafter, the Commission shall submit to the county councils of Montgomery County and Prince George’s County and, in accordance with § 2–1257 of the State Government Article, the General Assembly:
(i)
an updated version of the long–range comprehensive financial plan; and
(ii)
any updated Commission policies relating to financial management.
(b)
A long–range comprehensive financial plan shall:
(1)
include stress testing based on industry standards; and
(2)
test the impact of a wide range of economic conditions that may affect the Commission and its financial solvency, including changes in employment rates, interest rates, and water usage.
(c)
The Commission shall publish the long–range comprehensive financial plan on the Commission’s website established under § 17–401 of this title.
Md. Code Ann., Pub. Util. § 17-203 (2026)
Title 17. Commission
Subtitle 2. Legal and Financial Affairs
§ 17–203LinkCopy Citation
Approval by the governing bodies of Montgomery County and Prince George’s County is required before the construction of any new Commission administration building or any substantial addition to an existing Commission administration building.
Md. Code Ann., Pub. Util. § 17-204 (2026)
Title 17. Commission
Subtitle 2. Legal and Financial Affairs
§ 17–204LinkCopy Citation
(a)
(1)
In this section, “border property” means property that:
(i)
is located:
(1)
on a boundary line with the District of Columbia; and
(2)
within one–half mile of:
(A)
a regional transit district or neighborhood center in Prince George’s County; and
(B)
an existing mass transit rail station that is operated by the Washington Metropolitan Area Transit Authority;
(ii)
lacks frontage on a right–of–way in Prince George’s County to connect water service, sewer service, or water and sewer service;
(iii)
qualifies as an expedited transit–oriented development project under the zoning laws of the county; and
(iv)
obtained site plan approval in the county on or after January 1, 2021, but before January 1, 2023.
(2)
“Border property” includes any property, regardless of the date of site plan approval or site plan revision, that is:
(i)
adjacent to a property that obtained site approval under paragraph (1)(iv) of this subsection; and
(ii)
owned by the same entity that owns the property that obtained site approval under paragraph (1)(iv) of this subsection.
(b)
(1)
Subject to paragraph (2) of this subsection, the Commission may enter into a contract or agreement concerning the construction, maintenance, and operation of the water supply, sewer, or drainage systems under its control or under the control or ownership of the District of Columbia or any other agency, authority, or commission specified in this section.
(2)
The Commission may enter into a contract or agreement under paragraph (1) of this subsection with:
(i)
the District of Columbia;
(ii)
for systems located in border properties, the District of Columbia Water and Sewer Authority;
(iii)
any federal, state, county, or municipal authority in the State or any other state; or
(iv)
any public water, sewer, or drainage commission in the State or any other state.
(c)
The Commission may contract with, as a primary party or as a subcontractor, or invest in any person for the ownership, joint–venturing, management, operation, supervision, assistance, participation, or any other activity relating to the design, construction, operation, maintenance, or management of water or wastewater systems, including systems, services, expertise, intellectual property, and techniques developed in connection with, or usable or marketable with respect to, water or wastewater systems.
(d)
(1)
Notwithstanding any other provision of law and subject to the requirements of this subsection, the Commission may contract with the District of Columbia or the District of Columbia Water and Sewer Authority concerning the construction, maintenance, and operation of a water supply, sewer, or drainage system by authorizing the District of Columbia or the Authority to provide water service, sewer service, or water and sewer service to a border property.
(2)
Any contract entered into under this subsection between the Commission and the District of Columbia or the District of Columbia Water and Sewer Authority shall:
(i)
allocate the maintenance costs of the water supply, sewer, or drainage system;
(ii)
allocate billing and collection responsibilities;
(iii)
require multifamily housing units served under the contract to use master meters;
(iv)
notwithstanding § 25–501(b)(2) of this division, provide for a service rate setting procedure for water service and sewer service that is based on the amount of water used;
(v)
provide notice of the Commission’s authority to:
(1)
charge the account of each customer served under the contract:
(A)
the minimum or ready to serve charges set by the Commission under § 25–502 of this division;
(B)
a fee that accounts for any additional operational costs that the Commission may incur in carrying out the duties under a contract entered into under this section if those duties are not required for other customer accounts within the sanitary district, as defined in § 16–101 of this article; and
(C)
any other fee required by State law, including the Bay Restoration Fee under § 9–1605.2 of the Environment Article;
(2)
inspect, read, and replace meters and other equipment; and
(3)
in accordance with this division and the regulations adopted by the Commission, terminate the water service of a customer served under the contract;
(vi)
require the Commission and the District of Columbia or the District of Columbia Water and Sewer Authority to notify customers of any health and safety advisories;
(vii)
based on a notification schedule agreed to by the Commission and the District of Columbia or the District of Columbia Water and Sewer Authority, require notification to customers served under the contract that:
(1)
the District of Columbia or the District of Columbia Water and Sewer Authority is the provider of water service, sewer service, or water and sewer service to the border property;
(2)
the Commission is the authorized billing agent for the District of Columbia or the District of Columbia Water and Sewer Authority;
(3)
the Commission is authorized to inspect, read, and replace meters and other equipment;
(4)
lateral water service and sewer lines are the responsibility of the property owner and not the Commission, the District of Columbia, or the District of Columbia Water and Sewer Authority;
(5)
the customer may be able to participate in a Customer Assistance Program or an Indirect Customer Assistance Program established under § 25–501.1 of this division; and
(6)
the customer may be charged higher service rates for water service and sewer service than other Commission customers because the District of Columbia or the District of Columbia Water and Sewer Authority, and not the Commission, is the direct provider of water service, sewer service, or water and sewer service; and
(viii)
limit the ability of the Commission, the District of Columbia, or the District of Columbia Water and Sewer Authority to reduce services provided to a customer served under the contract.
(e)
(1)
Any contract or agreement entered into under this section has the full effect of a contract between the District of Columbia and the State or between the other agencies, authorities, or persons described in the section and this State.
(2)
The authority granted in this section is in addition to, and is not limited by, the authority granted by any other Act of the General Assembly.
Md. Code Ann., Pub. Util. § 17-205 (2026)
Title 17. Commission
Subtitle 2. Legal and Financial Affairs
§ 17–205LinkCopy Citation
(a)
In this section, “product” or “technology” does not include water or sewer service provided as part of the primary mission of the Commission in the sanitary district or through systems connected directly to and operated as part of the water and sewer system in the sanitary district.
(b)
Subject to subsection (d) of this section, the Commission may sell, lease, or license to the public, or enter into a contract concerning:
(1)
any product or technology that is produced or developed by the Commission in the normal course of operations, including patents, trademarks, and copyrights;
(2)
any service directly related to a product or technology described in item (1) of this subsection; or
(3)
any system, service, expertise, intellectual property, or technique developed, owned, or controlled by or under the jurisdiction of the Commission.
(c)
The Commission may adopt a price structure for an item described in subsection (b) of this section based on any factors that the Commission considers relevant, including:
(1)
the costs of creating, developing, reproducing, and delivering the product or technology;
(2)
overhead and labor costs; and
(3)
the fair market value of the product or technology.
(d)
(1)
The Commission shall account for expenditures and revenues resulting from sales under this section by establishing a separate set of accounts.
(2)
The accounts established under paragraph (1) of this subsection shall be itemized and included in the Commission’s annual budget.
(e)
The Commission shall use any net revenues earned from projects and contracts entered into under this section to stabilize or reduce rates and to reduce debt.
Md. Code Ann., Pub. Util. § 17-206 (2026)
Title 17. Commission
Subtitle 2. Legal and Financial Affairs
§ 17–206LinkCopy Citation
(a)
The Commission may finance initial program development costs and other project costs for a project subject to this subtitle from Commission funding sources other than revenue bond proceeds only if those costs are reimbursed from project revenues.
(b)
In any fiscal year, funding of initial program development costs and other project costs under subsection (a) of this section may not exceed an amount equal to 3% of the gross revenues of the Commission from water service charges and sewer usage charges for the immediately preceding fiscal year.
(c)
Any project, contract, or transaction entered into under this subtitle that uses revenue bonds issued under Title 22, Subtitle 2 of this article shall be entered into by the Commission through the use of:
(1)
a limited liability company;
(2)
a limited liability partnership;
(3)
a limited partnership; or
(4)
another comparable limited liability entity or arrangement.