# Public Utilities (GPU)

## Title 23. Water, Sewers, and Drainage

### Subtitle 2. Subdivision Lines and Service Connections

#### Section 23-201

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Authorization for service" means an application by a property owner or developer to the Commission for water or sewer service that requires the construction of subdivision lines.

  (3) "Development" means a project for the construction of:

    (i) two or more residential dwelling units; or

    (ii) a commercial or industrial structure.

  (4) "Health hazard" means an owner-occupied residential property with a failing well or septic system as certified by the State or a local health department.

  (5) "Payment security" means security to guarantee payment to the utility contractor, subcontractors, and suppliers that provide labor, materials, or construction equipment for the construction of subdivision lines.

  (6) "Performance security" means security to guarantee completion of the construction of subdivision lines.

  (7)

    (i) "Subdivision lines" means the water and sewer pipelines or facilities necessary to provide service to a development, including service connections to individual lots or properties in a development.

    (ii) "Subdivision lines" does not include pipelines or facilities that constitute major projects as defined in Sec. 23-301 of this title.

(b)

  (1) Subject to paragraph (2) of this subsection, this section does not apply to:

    (i) authorizations for service for which:

      (1) application was made with the Commission on or before June 30, 1999; and

      (2) the Commission entered into a contract for construction of subdivision lines with notice to proceed issued by the Commission to its contractor on or before June 30, 2001; or

    (ii) authorizations for service for the relief of health hazards.

  (2) Each part of a multipart authorization for service shall be considered a separate authorization under paragraph (1) of this subsection.

(c) Notwithstanding any other provision of law and except as provided in subsection (b) of this section, the owner or developer of a development in the sanitary district shall construct all subdivision lines for the development at the expense of the owner or developer.

(d) Before constructing subdivision lines, the owner or developer of a development shall enter into an agreement with the Commission that:

  (1) requires the subdivision lines to be constructed under plans and specifications submitted to and approved by the Commission;

  (2) requires the owner or developer to comply with all applicable laws and requirements for the construction of the subdivision lines;

  (3) provides for the inspection of the subdivision lines by the Commission before the line is placed in service;

  (4) requires the property owner or developer to provide:

    (i) performance security payable to the Commission in an amount acceptable to the Commission, taking into account potential cost escalation; and

    (ii) payment security payable to the Commission in an amount equal to the amount of the performance security; and

  (5) provides that before the subdivision lines are placed in service, the property owner or developer shall provide the Commission with a release of liens, on a form acceptable to the Commission, signed by the utility contractor and notarized, stating that the utility contractor, subcontractors, and suppliers have been paid.

(e) Acceptable forms of performance security and payment security under subsection (d) of this section are:

  (1) a certified check;

  (2) a cash deposit;

  (3) a certificate of deposit;

  (4) an irrevocable letter of credit from a financial institution acceptable to the Commission and in a form acceptable to the Commission;

  (5) a bond executed by a surety company authorized to do business in the State; or

  (6) any other form of security acceptable to the Commission.

(f)

  (1)

    (i) A utility contractor, subcontractor, or supplier providing labor, materials, or equipment for the construction of the subdivision lines that has not been paid may file a claim against the payment security within 180 days after completion of construction of the subdivision lines under the procedure required in the payment security.

    (ii) If a procedure is not specified in the payment security, the procedure shall be as established by regulations adopted by the Commission.

  (2) The Commission may not release or reduce the amount of the payment security until:

    (i) all claimants have been paid; or

    (ii) 180 days have passed since completion of construction and no claims have been made.

#### Section 23-202

(a)

  (1) If property abuts on a street or right-of-way in which a water main or sanitary sewer is installed, the Commission shall provide a service connection from the water main or sanitary sewer to the property line of the abutting lot.

  (2) The service connection shall be constructed by and at the expense of the Commission and shall be paid for in accordance with this division.

(b)

  (1) When the Commission declares a water main or sewer complete, after notice, every abutting property owner may hook up spigots, hydrants, toilets, and waste drains with the water main or sewer, as appropriate, within the time set by the Commission.

  (2) If the fixtures described in paragraph (1) of this subsection do not exist or if the Commission determines that they are improper or inadequate, the property owner shall install satisfactory equipment.

(c)

  (1) Any cesspool, sink drain, outhouse, or well that is polluted or a menace to health shall be abandoned and left in a way that it cannot be used or pose a risk to the public health.

  (2) The Commission shall determine the disposition of these facilities.

(d)

  (1) After the construction or acquisition of a water main or sewer, the Commission may order a property owner or occupant who refuses to connect to the water main or sewer to hook up to the water main or sewer if:

    (i) a condition exists that appears to be a menace to the health of the occupants of the property or the occupants of a nearby or adjoining property;

    (ii) the property on which the condition exists abuts the water main or sewer;

    (iii) the Commission gives the owner or occupant 10 days' notice and an opportunity to be heard; and

    (iv) the Commission determines the condition to be a menace to the health of the occupants of the property or the occupants of a nearby or adjoining property.

  (2)

    (i) If the Commission determines that a condition exists as provided in paragraph (1) of this subsection, the Commission shall pass an order that requires that the property hookup be made in not less than 30 days or more than 90 days of the issuance of the order.

    (ii) The property owner or occupant may not refuse to comply with the order or violate any of the other provisions of this section.

    (iii) As provided in the Administrative Procedure Act, the property owner or occupant may seek judicial review of the decision of the Commission.

(e)

  (1) In this subsection, "master meter" means a meter used to measure, for billing purposes, the total amount of water and sewer usage in a building, including the combined use from all individually leased or owned units and all common areas.

  (2) This subsection applies only in Prince George's County.

  (3) The Commission may not authorize the use of a master meter for water and sewer service in a residential multiple occupancy building that is constructed or converted to condominium or cooperative ownership.

  (4) In the case of a residential multiple occupancy building in which the Commission has previously authorized the use of a master meter under this section, and that is intended to be converted to condominium or cooperative ownership, the conversion of ownership may not take effect until individual meters have been installed for each individual dwelling unit and for the common areas of the building.

#### Section 23-203

(a) Except as provided in subsection (e) of this section, this section does not apply to streets, roads, alleys, sidewalks, or public property in the jurisdiction of Montgomery County.

(b)

  (1) The Commission shall make taps in installations of the Commission at a charge that the Commission considers reasonable.

  (2) The Commission may construct and make water service connections of 2 inches or larger and charge for the connections at the actual cost to the Commission.

(c) The Commission may authorize the construction of service connections by a master plumber, who is registered in the sanitary district, under the supervision of the Commission.

(d)

  (1) If the Commission, by resolution, authorizes service connections to be made by a master plumber, under regulations and after issuance of a written permit by the Commission, the master plumber may enter on and cut into a street under the jurisdiction of a public authority to the same extent that the Commission may enter on and cut into the street.

  (2)

    (i) The master plumber shall first post with the Commission an indemnity bond in an amount set by and with sureties approved by the Commission.

    (ii) The bond shall indemnify the Commission and any State, county, or municipal authority having jurisdiction over the street against all loss, cost, or damage that may be caused by the master plumber's entering on and cutting into the street.

    (iii) The master plumber shall deposit with the Commission in cash a sum set by the Commission to cover the cost of resurfacing the cut.

  (3)

    (i) The only permit required shall be a permit issued by the Commission in accordance with this section.

    (ii) The master plumber shall notify the authority having control of the street to be entered and cut of the time and nature of the work to be done.

(e) Before cutting into a street, road, alley, sidewalk, or public property under the jurisdiction of Montgomery County, a master plumber shall secure a permit from the county and pay a fee and comply with regulations established by the county.

(f) The Commission shall adopt regulations to implement this section.

#### Section 23-204

The Commission may grant water or sewer service connections, hookups, or authorizations for service or otherwise extend water and sewer service to a new development in the Prince George's County portion of the sanitary district only if the development is in conformance with adopted and approved plans, programs, and policies of the county or other regulations that the county may include in an adopted and approved comprehensive water and sewer plan, amendment, or revision.

#### Section 23-205

(a)

  (1) In this section the following words have the meanings indicated.

  (2) "Fund" means the Connection Pipe Emergency Replacement Fund.

  (3)

    (i) "Pipe" means a water or sewer service pipe connection located on a Commission customer's property that connects from the Commission's service connection to a customer's residence.

    (ii) "Pipe" includes polybutylene pipes.

  (4) "Program" means the Connection Pipe Emergency Replacement Loan Program.

(b) The Commission shall establish a Connection Pipe Emergency Replacement Loan Program.

(c) The purpose of the Program is to provide loans to residential customers to diagnose and finance the replacement of malfunctioning pipes.

(d) The Program shall include:

  (1) eligibility requirements for participation in the Program, including eligibility requirements for:

    (i) customers applying to receive a loan through the Program;

    (ii) the type of connection pipe that is being installed to replace the existing connection pipe;

    (iii) the type of malfunction and pipe replacement emergency that qualifies for the Program; and

    (iv) the type of diagnostic action that qualifies for the Program;

  (2) a requirement that a customer receive notification or have certification that there is an active leak in the pipe that will be replaced;

  (3) loan terms and conditions, including an interest rate repayment schedule and an administrative processing fee;

  (4) a requirement that the replacement of malfunctioning pipes or a diagnostic action taken under the Program be performed by a plumber licensed by the Commission; and

  (5) a prohibition on the Commission replacing malfunctioning pipes under the Program.

(e)

  (1) The Program shall provide loans to customers on a first-come, first-served basis.

  (2) A loan made under the Program may not exceed $10,000.

  (3) A customer may not receive more than one loan at a time under the Program.

(f)

  (1) Subject to paragraph (3) of this subsection, the Program shall require a customer to repay a loan provided under the Program:

    (i) through a separate charge on the customer's water and sewer bill; or

    (ii) by another method determined by the Commission.

  (2) The Commission may not set a charge greater than an amount that allows the Commission to recover the costs associated with:

    (i) financing the loan; and

    (ii) administering the Program.

  (3) A person who acquires property subject to a charge under this section assumes the obligation to pay the charge.

(g)

  (1)

    (i) Subject to paragraph (4) of this subsection, a loan provided under the Program shall be a lien against the property on which a malfunctioning pipe has been replaced or a diagnostic action has been taken.

    (ii) A lien under subparagraph (i) of this paragraph shall continue until the loan is paid in full to the Commission.

  (2) The Commission shall be the sole holder of the lien established under paragraph (1) of this subsection.

  (3)

    (i) The Commission shall record a lien established under this subsection in the land records of the county where the property is located.

    (ii) A lien established under this subsection shall secure payment of a loan, including the principal, interest, late charges, cost of collection, and reasonable attorney's fees.

    (iii) Enforcement of a lien established under this subsection shall be in accordance with the Maryland Contract Lien Act.

  (4) A lien established under this subsection may not take priority over a lien, mortgage, deed of trust, or other security interest that is:

    (i) already attached to the property at the time the lien established under this subsection is recorded; or

    (ii) given to secure a loan to:

      (1) purchase the property subject to the lien established under this subsection; or

      (2) refinance a loan that is already attached to the property at the time the lien established under this subsection is recorded.

  (5) The Program may not provide, or at any time have outstanding, more than $2,000,000 total in loans.

(h) The Commission shall include $200,000 annually in the Commission's budget for the Program for fiscal years 2020 through 2034.

(i)

  (1) There is a Connection Pipe Emergency Replacement Fund.

  (2) The purpose of the Fund is to provide funding for the Program.

  (3) Notwithstanding any other provision of law, the Fund shall be administered solely by the Commission or the Commission's designee.

  (4) The Fund consists of:

    (i) money appropriated by the Commission from ratepayer funds only;

    (ii) any investment earnings of the Fund; and

    (iii) any other money from any other source accepted for the benefit of the Fund.

  (5) The Fund may be used only for:

    (i) providing loans through the Program; and

    (ii) the administration of the Program.

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Md. Code Ann., Pub. Util. (as displayed at mgaleg.maryland.gov, October 16, 2026)