# State Finance and Procurement (GSF)

## Title 2. General Provisions

### Subtitle 4. Water and Sewerage Systems

#### Section 2-401

(a) In this subtitle the following words have the meanings indicated.

(b) "Annual operating costs" include the cost of:

  (1) the production, treatment, pumping, storage, transmission, and distribution of water and the maintenance and repair of equipment associated with these functions;

  (2) the collection, pumping, transmission, and treatment of wastewater, and the maintenance and repair of equipment associated with these functions;

  (3) administrative overhead;

  (4) debt service;

  (5) depreciation; and

  (6) servicing customer accounts.

(c) "Lateral system construction costs" include:

  (1) any cost necessary to plan, design, acquire, construct, inspect, test, and put into operation the lateral system to serve a State facility; and

  (2) any indirect cost incurred by the local jurisdiction that is necessary to construct water and sewer lines.

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Md. Code Ann., State Fin. & Proc. (as displayed at mgaleg.maryland.gov, October 16, 2026)