2022 Maryland State Legislative Session Summary
The Maryland Building Industry Association reviewed 146 of the 1,783 bills introduced by the Senate and the House this year. MBIA took a position on 127 bills. We are very proud of the successes we achieved during the 2022 Legislative Session and the MBIA Government Affairs team will continue to work hard on behalf of the building industry to make it easier for you to do your job.
Color Coding:
Bills in Green were supported by MBIA and passed the legislature
Bills in Orange were opposed by MBIA as introduced, however were amended so that MBIA dropped their opposition
Bills in Red were opposed by MBIA and did not pass the legislature
Climate Change/ Environment/ Codes
SB7/HB15- Invasive and Native Plants- Classification, Listing, and Use: requires Secretary of Agriculture to classify certain plants as a tier 1 or tier 2 invasive plant. Requires the Department of Natural Resources to create a list of plant species native to the State and prioritizes using native plants in the state. As introduced, the bill also made native plants tax exempt. This was amended from the bill. (effective October 1, 2022)
SB81/HB61- Charter Counties – Enforcement of local building performance laws- authorizes charter counties to provide for the enforcement of local building energy performance laws by imposing civil fines not exceeding $10 per square foot of gross floor area. The bill was amended to not apply to new construction (defined as being completed at least 3 years and 1 day before the date the civil fine would be imposed. (effective October 1, 2022)
SB90/ HB595- Department of the Environment- Supplemental Environmental Projects Database: Requires the Department of the Environment to create a database of Supplemental Environmental Projects that the Department may consider for implementation as part of a settlement of an enforcement action. (effective October 1, 2022)
SB135/ HB171 Climate Crisis and Environmental Justice Act- Establishes Climate Crisis Initiative and sets new goals for the state to reduce greenhouse gas emissions. Creates a carbon tax on fossil fuels.
SB221/ HB402- Department of the Environment- Enforcement Authority: This bill updates penalties and enforcement actions that can be taken to enforce provisions of the Environment Articles. (effective October 1, 2022)
SB348/HB653- Conservation Finance Act- provides that the Department of Agriculture, the Department of Natural Resources, and the Maryland Environmental Trust must allow participants in certain cost sharing programs to participate in and receive compensation from greenhouse gas markets, carbon credits, or soil carbon programs under certain circumstances. (Effective July 1, 2022)
SB492/ HB649- Environment – Discharge Permits- Inspections and Administrative Continuations. Establishing inspection and reporting requirements for certain permit holders, establishing administrative penalties for certain permit holders. As amended, it exempts General Permits. Our industry is no longer affected by the legislation. (Effective July 1, 2022)
SB524/ HB108- Public Utilities – Energy Efficiency and Conservation Programs- Energy Performance Targets a Low-Income Housing- requiring the DHCD to procure or provide for electricity customers energy efficiency and conservation programs and services designed to achieve an annual incremental gross energy savings of at least .4% starting in 2023. (Effective July 1, 2022)
SB528 – Climate Solutions Now Act of 2022- as introduced, this bill would have done several things. Specific to the Building industry the primary effect would have been (1) required the Department of Labor to create a building code for all new construction by January 1, 2023 that meet all water and space heating demands without the use of fossil fuels; and electric-ready standards to ensure that new buildings are ready for solar energy systems and electric vehicle charging equipment. (2) creates new requirements for “Covered Buildings” (defined as 25,000 square feet) that involved them reporting greenhouse gas emissions starting in 2025 and reducing their greenhouse gas emissions starting in 2030 and being net zero in 2040. Amended Version: To see summary of bill - go TO https://www.marylandbuilders.org/climate-solutions-act-of-2022.html . (1) The fuel ban for all new construction was eliminated from the bill. It was replaced by a study that needs be conducted by the Public Service Commission and the Building Code Administration. The final report is due December 1, 2023. (2) The covered buildings definition was changed to 35,000 square feet. Owners of covered buildings will need to report their “direct greenhouse gas emissions” to the Department of the Environment (MDE) starting in 2025. MDE is required to establish “energy performance standards” that will achieve 20% reduction in direct emissions by 2030 and ne-zero in direct emissions by 2040. The bill does create some exemptions and provides for an alternative compliance fee. For full detail, visit the link above. (Effective June 1, 2022)
SB552/ HB695- Environment- Climate Crisis Plan- Requirement- requires each county to prepare a climate crisis plan to address the effects of climate change in the county, requiring each county to submit its plan to MDE for review and feedback on or before June 1, 2023.
SB783/ HB596- Constitutional Amendment- Environmental Rights: Proposes amendment to the Constitution to establish that every person has the fundamental and inalienable right to a healthful and sustainable environment; and requiring the State t serve as the trustee of the Stats natural resources, including the air , land, water, wildlife, and ecosystems of the State, and to conserve, protect, and enhance the States natural resources for the benefit of every person.
SB818/HB1200- Environment- Permit Applications- Environmental Justice Screening- requires a person who is applying for certain permits under the Environment Article (title 1, subtitle6) to include the Environmental Justice Score from the Maryland Environmental Justice tool. Does not affect permits (generally) issued to members of the MBIA. (Effective October 1, 2022)
SB931/HB880- Environment – Impact of Actions on Climate, Labor, and Environmental Justice: requires a governmental unit, before taking an “action”, to evaluate and make a determination on whether and to what extent the action may negatively affect the climate, labor and employment, “environmental justice, “and any overburdened community.”
HB708- Comprehensive Climate Solutions- requires the State to reduce statewide greenhouse gas emissions through the use of various measures. NOTE: Parts of this bill were included in SB528.
HB806- Building Standards and Emissions Reductions- High Performance, State and Local Government Buildings, State Operations and Eligible Projects- Alters the definition of “High performance building” to include certain schools and public safety buildings and require that buildings meet certain standards. NOTE: parts of this bill were incorporated in SB528.
HB831- Reducing Greenhouse Gas Emissions- Commercial and Residential Building- requires the Department of the Environment to establish building emissions standards for certain commercial and residential buildings; establishes the Building Energy Transition Implementation Task Force to study certain matters. NOTE: parts of this bill were incorporated in SB528.
HB834- On-Site Sewage Disposal Systems- Outreach and Education (Septic Awareness Act of 2022)- requires MDE to establish a certain period of time as SepticSmart Week. (Effective October 1, 2022)
Electric Vehicles
SB146/HB157 - Vehicle Laws- Plug-In Electric Drive Vehicles- Reserved Parking Spaces: Prohibits a person from stopping, standing or parking in a vehicle that is not a plug-in electric drive vehicle plugged into charging space that is for use of plug-in electric drive vehicles only. Requires a parking space for the use of plug in be counted as part of overall number of parking spots under the Americans with Disabilities Act. (Effective October 1, 2022)
SB627- State Building Code- Electric Vehicles: requires the Department of Labor to adopt Building Code regarding electrical service capacity for charging electric vehicles that must be include in newly constructed and specified renovated buildings. The bill species the minimum number of parking spaces to be equipped for electric vehicle charging. The bill also repeals provisions that require builders to offer homebuyers the option to include charging stations as part of construction.
SB924/ HB507- Environment- Electric Vehicle Charging Infrastructure – Environmental Justice Considerations: requiring a unit of State government that develops electric vehicle charging infrastructure or administers public funding for the development of electric vehicle charging to use environmental justice guidelines when selective communities.
HB1147- Residential Construction- Electric Vehicle Charging- requiring the construction of certain new townhouses and multifamily residential buildings that do not have at least one garage, carport, or driveway for each housing unit to include on a certain number of communal off street parking to have charging station capable of at least level 2 charging.
Home Owners Associations/ Condominium
HB40- Condominiums- Disclosures to Unit Owners and Prohibited Owners- clarifying that certain provisions o law related to closed door meetings of a board of directors of a condominium do not allow the board to withhold or agree to withhold the terms of certain agreements from the unit owners. Making unenforceable a certain contract. (Effective October 1, 2022)
HB93- Candidates for Offices of Municipalities and Common Ownership Communities- Reports of Donations and Disbursements: requires certain municipalities, cooperative housing corporations, condominiums, and homeowners’ associations that require candidates for office to file reports of donations and disbursements to transmit copies of reports to State Board of Elections.
HB107- Cooperative Housing Corporations, Condominiums, and Homeowners Associations- Reserve Studies- Statewide- requires the governing body of a common ownership communities to have a reserve study conducted and to update the reserve study every 5 years. The amendments allow for the reserve study to be funded after 3 budget cycles. It also changes some of the requirements of who conducts the studies. (Effective October 1, 2022)
HB140- Real Property- Condominiums and Homeowners Associations- Governing Bodies and Annual Meetings- amends various provisions of the Maryland Condominium Act and the Maryland Homeowners Association Act, including (1) requiring board (and/or declarant) to convene two meetings a yea (and provides some parameters for meeting agenda, (2) once 25% of units are sold, developer must appoint a unit owner that is not related to the developer as a Board member, (3) amends record keeping requirements, and (4) requires developer to provide each member of the Board of Directors who is not affiliated with the developer with notice of any bond provided to a governmental unit. The developer must also provide notice of intention to be released from bond.
HB358- Maryland Condominium Act- Amendments to the Declaration- Interest in Common Elements: authorizes the council of unit owners of a condominium to alter, by a vote of at lease 60% of the eligible votes, the undivided percentage interest in the common elements of any unit.
HB1060- Residential Owners in Common Ownership Communities Bill of Rights- Establishes a bill of rights for unit owners of a condominium, member of a cooperative housing corporation, and lot owners of a homeowners associations.
HB1194- Condominiums- Assessment Late Fees and Liens- Notice and Timing- requires the council of unit owners of a condominium to provide a certain notice to a unit owner at least 30 days before imposing a lien on a condominium unit.
Landlord/ Tenant
SB6/HB86- Landlord and Tenant- Residential Leases- Tenant Rights and Protections: makes changes to tenant rights and protections including (1) establishes procedures for landlords that use ratio utility billing system; (2) requires statement of costs is landlord withholds return of security deposit; (3) expands protections for tenants that are victims of abuse; (4) grants tenant organization access to gathering space. The amendments narrowed requirements to the ratio billing systems portion of the bill. The amendments also narrowed what the landlord needs to provide regarding withholding security deposits. (Effective June 1, 2022)
SB223/HB298- Landlord and Tenant- Eviction Actions- Filing Surcharge and Prohibited Lease Provisions-increases a surcharge for summary ejectment, tenant holding over, or breach of lease cases for possession of residential property to maximum of $73. The surcharge must be assessed against a landlord and may not be awarded at cost of residential tenant.
SB521/ HB712- Landlord and Tenant- Access to Counsel in Evictions Special Fund- Mandatory Appropriation: requires the Governor to appropriate a certain amount of federal rental assistance to the Access to Counsel in Evictions Special Fund.
SB564/ HB691- Landlord and Tenant- Eviction Prevention Services- authorizes the court to grant a recess or a continuance in certain circumstances. (Effective October 1, 2022)
HB134- Failure to Pay Rent Proceedings- Prohibition on Rent Increases and Sealing of Court Records Prohibiting a landlord from increasing a tenant rent because a judgement was entered in a failure to pay rent action; requires the Court to seal all court records within 60 days after the final resolution of a failure to pay rent proceeding. Amendments made providing proof for the landlords easier. (effective January 1, 2023)
HB174- Landlord and Tenant- Repossession for Failure to Pay Rent- Registration and License Information. Requires landlord filing a complaint to repossess property for failure to pay rent to demonstrate that the property is in compliance with any local licensing requirements.
HB367- Landlord and Tenant- Repossession for Failure to Pay Rent- Rental Assistance Program: establishes procedures for filing a failure to pay rent action against a tenant affected by the COVID-19j pandemic.
HB392- Landlord and Tenant- Failure to Repair Serious and Dangerous Defects- Tenant Remedies authorizes a single tenant to seek remedies on behalf of a group of tenants or a tenants organization for a landlords failure to repair defects on a leased premise.
HB521- Landlord and Tenant- Repossession for Failure to Pay Rent- Shielding of Court Records- authorizes a tenant to petition the court to shield court records relating to any action for repossession for failure to pay rent if the failure to pay rent was due to loss of income arising out of the COVID-19 pandemic.
HB 551- Real Property Rent Increase Restrictions- prohibits a landlord from increasing rent on certain rental units by more than 2% each year for a lease of a year or more and by more than 1% every 6 months for a month-to-month lease. Amendments strike the bill and require 90 day notice if the landlord is going to increase rent more than 4%. (effective October 1, 2022)
HB881- Landlord and Tenant- Residential Leases and Holdover Tenancies- Local Just Cause Termination Provisions- authorizes a county to adopt provisions prohibiting a landlord of residential property form failing to renew a lease or from terminating a holdover tenancy without just cause.
General Contracting/ Construction
SB1/ HB145- State Finance and Procurement- Prevailing Wage- Stop Work: Authorizes the Commissioner of Labor to issue a stop work order for a work site that is determined that a contractor is violating the prevailing wage law. Amendments require the Commissioner to investigate prior to issuing the stop work order. It also puts some guardrails on the requirements. (effective October 1, 2022)
SB467/ HB917- Business Regulation- Home Improvement Commission- Award Limits- Increasing the limit, from $20,000 to $30,000 that the Maryland Home Improvement Commission can award from the Home Improvement Guaranty Fund to one claimant for certain acts or omissions of one contractor. (effective July 1, 2022)
Taxes
SB289/ HB27- Historic Revitalization Tax Credit- Funding and Extension- establishing the Small Commercial Project Trust Account within the Historic Revitalization Tax Credit reserve fund. (effective July 1, 2022)
SB314/ HB405- Income Tax- Mechanical Insulation Installation Tax Credit- allowing a credit against the State income tax for expenses incurred by a taxpayer for the installation of certain mechanical insulation. (Effective July 1, 2022)
SB360- Corporate Tax Fairness Act of 2022- requiring that certain sales of tangible personal property by included in the numerator of the sales factor used for apportioning a corporation’s income to the state under certain circumstances.
HB457- Corporate Income Tax- Throwback Rule and Combined Reporting: (1), applies a “throwback” rule in determining whether sales are considered in the State for purposes of State’s corporate income tax apportionment formula, (2) requires affiliated corporations to compute Maryland taxable income using combined reporting; and (3) creates a subtraction modification against the State income tax for certain tax liabilities.
Other
SB66- Labor and Employment- Hiring- Education Requirements-Prohibited an employers from developing or implementing a hiring process that uses an applicant’s or employees lack of a certain level of education in employment decisions.
SB318/Hb652- More Opportunities for Career-Focused Students Act of 2022- requires local school systems to assist high school students in preparing for admission to registered apprenticeship programs in a manner similar to hour students prepare for post-secondary institutions. (Effective July 1, 2022)
Sb319/HB303- Public Safety, Maryland Swimming Pool and Spa Standards- requires the Maryland Department of Labor to adopt by regulation the International Swimming Pool and Spa Code
SB678/HB762- Real Property- Residential Contract of Sale- Buyer Identification: authorizes a buyer who executes a residential contract of sale for a single-family residential real property with a real estate broker to mask the buyer’s identity.
SB744/HB927- Housing and Community- Affordable Housing- Excess Real Property- requires the Department of Planning to provide a list of excess real property owned by the State to the Department of Housing and Community Development (DHCD). Requires DHCD to determine whether any of the listed properties are suitable for use or redevelopment as affordable housing.
HB365- Green School Construction Act of 2022- Prohibited the Interagency Commission on School Construction from considering a new or replacement fossil fuel-based energy system as a construction or capital improvement cost.
HB688/ HB762/SB678- Real Property- Residential Contract of Sale- Buyer Identification- authorizes a buyer who executives a residential contract of sale for a single family residential real property with a real estate broker to mask the buyer’s identity.
Local Legislation
HB265- Baltimore County- Nuisance Actions- Community Association Standing: altering the definitions of “community association” and “local code violation” to authorize community associations to seek judicial relief for nuisance abatement in Baltimore County.
Ho.Co. 8-22- Howard County- Commercial Building Excise Tax- Board of Education Deferred Maintenance- authorizes the County Council of Howard County to impose a certain excise tax.
MC 15-22- Montgomery County- Special Taxing Districts- Real Property Tax Rates- authorizes Montgomery County to set property tax rates for certain subclasses of real property located in certain special taxing districts.
MC/PG 107-22- Montgomery County- Land Use Documents- Certification- requires certain land use regulations applicable in Montgomery County to require that an applicant sign a certification for certain documents submitted to the county planning board.