SECURE 2.0: What Municipal Employers Need to Understand
Here we go again. Beginning in 2023, the SECURE 2.0 Act becomes law as a follow up to the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019. Generally, the goal of this act is to help give Americans a better chance to build towards a successful retirement.
Most of the new legal provisions do not go into effect until January 1, 2024, or even later, but there are some provisions that are effective immediately.
Maryland municipalities that offer deferred compensation 457 plans need to be aware of these changes and will need to understand how to implement them as soon as possible. There are over 90 changes made under SECURE 2.0, but some of the key points are as follows:
Higher catch-up contributions will start on January 1, 2025. Individuals ages 60-63 will be able to make catch contributions of $10,000 annually that will be indexed for inflation. Currently, the 2023 catch-up amount for those over age 50 is $7,500. One significant change to the catch-up provision is that it will need to be tracked starting in 2024 for
those that earn over $145,000 the prior calendar year. For these individuals, all 50+ catch-up contributions will need to be made as a ROTH (after-tax dollars) contribution. To account for this, 457 plans will need to be amended to allow for ROTH sources.
Required Minimum Distribution (RMDs) age increased on January 1, 2023. The age originally went from 70.5 to 72 in 2019 and is now increasing to age 73 for when one must start taking out minimum withdrawals. This will increase yet again in the year 2033 to age 75. Also starting in 2023, those who miss an RMD will have a penalty reduction to 25% from 50%. Additionally, the penalty can be reduced to 10% if the account owner submits a corrected tax return form in a timely manner.
These are just a few of the provisions that are addressed in the SECURE 2.0 Act but now is the time to start preparing. Providing a 457 deferred compensation plan for your employees is an excellent solution for voluntary, supplemental retirement savings. If you do not have a 457 deferred compensation plan, we can provide education on why this plan is an
extremely valuable tool for your employees and can be added as an additional benefit at no cost to the municipality, county or authority.
Third party administration, actuarial, and other consulting services offered through CBIZ Benefits & Insurance Services, Inc. Investment advisory services provided through CBIZ Investment Advisory Services, LLC, a registered investment adviser and a wholly owned subsidiary of CBIZ, Inc. For more information, connect with a consultant at cbiz.com/retirement.
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By Bradley P. Warner CPFa , ViCe President – retirement & inVestment solutions
MML DEPARTMENT DEEP DIVE:
MARYLAND MUNICIPAL CLERKS ASSOCIATION
The purpose of the Maryland Municipal Clerks Association (MMCA) is to promote improvement and efficiency in the operation of municipal and county clerks’ offices by facilitating cooperation among municipal and county clerks. MMCA encourages the interchange of experiences and methods of conducting clerks’ offices, by promoting or sponsoring periodic conferences and meetings for the discussion of problems and through research to find solutions.
CLERK HISTORY
The municipal clerk is the oldest public servant in local government, along with the tax collector. The profession traces back to before biblical times. Ancient Greece had a city secretary who
Share your MML Summer Conference experience with the world! Tweet using #MMLCON23
By dashaun n. l anham, CmC, City Clerk , City oF seat Pleasant
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Maryland Clerks PhotograPhed at 2022 MMl s uMMer C onferenCe
read official documents publicly. In England during the Middle Ages, the clerk was considered a scholar, one who could read and write, and thus served as notary, accountant, recorder, and tied the past to the present by keeping all records. In colonial times when the colonists first settled in Plymouth, MA, the town clerk was one of the earliest offices established. This person recorded all vital records for births, deaths, marriages, as well as appointments, deeds, election of officers, land grant information, tax collection, property assessments, and budgets.
ROLE OF CLERK
Over the years, the municipal clerks have become the hub of government, the direct link between the inhabitants of their community and their government. The clerk is the historian of the community for the entire recorded history of the town, city, or county and its people are in his or her care. In the last 10 to 15 years, the role of the city clerk has become increasingly more complex, requiring that the present-day clerk be a professional administrator along with all their diversified duties.
HISTORY
The Maryland Municipal Clerks Association is a nonprofit organization established at the Maryland Municipal League’s annual convention in June 1976, by municipal clerks who recognized the need for a professional association in the State of Maryland. The Maryland Municipal Clerks Association elects a clerk of the year annually. The awardee is honored at the MML Summer Conference.
Maryland Municipal Clerks Association is an affiliated organization of the Maryland Municipal League. MMCA is a part of the International Institute of Municipal Clerks Region II that includes Delaware, District of Columbia, Maryland, New Jersey, Pennsylvania, West Virginia, and Virginia. We will have representation from Maryland as the Region II Director, and Bowie City Clerk, Awilda Hernandez will be sworn-in during the 77 th Annual International Institute of Municipal Clerks Conference in Minneapolis, Minnesota in May 2023
MMCA MEMBERSHIP INFORMATION
The State of Maryland has 157 municipalities, and the Maryland Municipal Clerks Association has eighty-five members.
The incoming Officers for 2023-2025 for MMCA is as follows as of June 2023:
■ John Hoatson, President Clerk of Upper Marlboro
■ Sara Green, Vice President Clerk of Laurel
■ Awilda Hernandez, Treasurer Clerk of Bowie
■ Yvette Allen, Secretary Assistant Clerk, College Park
THE MARYLAND MUNICIPAL CLERKS ASSOCIATION (MMCA):
■ Provides a network of informed individuals available for the exchange of ideas, experiences, and problem solving.
■ Provides continuing growth and development opportunities through educational programs and workshops.
■ Supports and encourages participation in the prestigious Certified Municipal Clerks (CMC) and Master Municipal Clerks (MMC) programs through the International Institute of Municipal Clerks (IIMC)
ɠ Accredited courses are offered at Virginia Commonwealth University in Richmond, Virginia, and other universities throughout the United States
ɠ MMCA scholarships and IIMC scholarships are available.
IIMC provides certification for the Clerks to obtain their Certified Municipal Clerk (CMC) or Master Municipal Clerk (MMC) designation. We have thirty-two members with their CMC designation, and fifteen members with their MMC designation.
The clerk association awards one clerk each year, as Clerk of the Year, and the awardee for 2023 is Doris Stokes, Clerk for Gaithersburg.
We encourage you to visit the clerk’s website at www. mdclerks.org
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Governor Calvert House, Annapolis
Sponsorship Opportunities Available
For more information, reach out to Felicia Banuelos, Manager, Executive Operations and Board Governance at feliciab@mdmunicipal org or (410) 295 9118
The MML Summer Symposium is only open to all local elected officials and municipal staff within the 157 cities and towns in Maryland. Engage with the decision makers from across the State who will be tasked with implementing the new cannabis industry and making retail, zoning and other decisions effecting the industry.
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2023Wrap-UpLegislative
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The close of the 2023 legislative session saw many wins for Maryland’s towns and cities, including municipal inclusion in sales tax revenue for the first time in state history through the legalization of recreational marijuana. Thanks to the significant and ongoing involvement of MML’s Board of Directors, Chapter leadership, Legislative Committee leadership and members, and our membership at large, MML secured significant legislative tools for municipalities, and kept many preemptive or unworkable bills at bay.
After reviewing all 2,275 bills introduced this year, the Legislative Committee supported 47 bills, of which 26 passed; and supported 29 bills with amendments, of which 16 were amended and passed. Of the 32 bills opposed by MML, 29 did not achieve passage, and the three bills that did pass were significantly amended such that the negative municipal impact was reduced.
Priorities
SB 409 / HB 518 - Police Accountability Boards and Administrative Charging Committees - Municipal Corporations
This MML priority resulted from the police reform legislation passed by the General Assembly in 2021, which among other changes, altered the police disciplinary framework. The result is a framework that allows for county oversight of municipal police officers.
In the 2021 law, counties are mandated to create police accountability boards (PAB) which, among other things, appoint civilian members to charging committees and trials boards. These entities and their membership are created by the county and according to the law, effectively have oversight of the discipline of municipal police officers.
As a result, PABs and charging committees are essentially county entities and municipalities have no guaranteed role in their creation
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or operation. However, some counties already incorporate mandatory municipal representation on their PAB, in fact about 40% of counties already do so. MML’s priority bill, SB 409 / HB 518, would have granted authority to municipalities to establish their own PABs and charging committees in the same manner as currently constructed for the counties. Under this bill, should a municipality choose not to establish their own PAB and charging committee, their police officers would remain under the structure established in the 2021 law. Despite, some encouraging discussions with State legislators, neither bill received a vote in their respective committee.
SB 516 / HB 556 – Cannabis Reform
Local Revenue
As introduced, SB 516 / HB 556 only allotted 1.5% of sales tax revenue to local governments. The sales tax started at 6% and would increase over the few years and finally settle at 10%. This meant that local governments would receive ~$900 for every $1,000,000 spent on cannabis within their boundaries. Legislative leaders explained early and often that the reasoning for the overall low tax rates is a strategic and necessary choice to combat the illicit market and allow the legal framework to gain a foothold. MML and MACo pushed back, arguing that while we understand this will not be a goldmine for local budgets, it should at least cover the costs our members are likely to incur as a result of implementing the legislation. The original bill did not even include the ability to establish a reasonable business or zoning fee.
As passed, local governments were provided the authority to establish reasonable fees compared to similar businesses. The local government sales tax share was also increased to 5% of 9% sales and use tax for counties and required counties to share 50% of the allocation to any municipality in which the revenue was derived (effectively 2.5% for cities and towns). So, for every $1,000,000 spent on cannabis in a municipality, that jurisdiction will receive ~$4,500 – a five-fold increase
from how the legislation was introduced. This is the first example of municipalities receiving any portion of sales and use tax.
Land Use
Another important aspect of this bill dealt with the location of recreational cannabis dispensaries and the role of local government in their siting. A stated goal of General Assembly leadership was to provide all Marylanders access to dispensaries within a reasonable proximity. The rationale was that if dispensaries were “clustered” near one another while large swaths of the State went unserved, then the underground drug market would fill the gaps in those
unserved areas. While MML pushed for the authority for municipalities to prohibit dispensaries, ultimately that was not adopted.
The final bill states that municipalities may establish reasonable zoning and other requirements for dispensaries, but those requirements may not “unduly burden a licensee.” This quoted phrase is not found in any other part of the Maryland code as it pertains to zoning and licensed businesses, so this may be one issue that needs clarification either through a court case or in subsequent General Assembly sessions.
In order to address clustering and locating dispensaries near sensitive areas,
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the bill sets out minimum distances that a dispensary may operate from certain other locations: at least 500 feet from schools, day care centers, parks, libraries, and recreational centers; and at least 1,000 feet from another dispensary. However, a local government may, through an ordinance, reduce those distance requirements. This last piece is also a bit ambiguous for if the intent of the General Assembly is to reduce clustering then is “reduce distance requirements” meant to mean increase the distances between dispensaries? This is likely another area that will require clarification.
There is a bit more latitude for local governments regarding on-site cannabis consumption facilities. Municipalities may in fact prohibit an on-site cannabis consumption facility from operating in their jurisdiction as well as prohibit or restrict the smoking or vaping of
cannabis at on-site consumption facilities. Lastly, municipalities may zone and plan for these types of facilities.
Environment
SB 222 - Environment - Statewide Recycling Needs Assessment and Producer Responsibility for Packaging Materials
As introduced, SB 222 created a process by which local governments could request reimbursement from a producer responsibility organization for costs associated with collecting, transporting, and processing packaging materials. MML supported this model, but the original bill did not provide the clarity necessary to understand the impact of the legislation on municipal operations. The bill was amended to simply require producers of packaging materials to create and implement producer
responsibility plans and in the meantime, creates a producer responsibility advisory council to provide advice and make recommendations regarding establishing and implementing a producer responsibility program in the State.
Transportation
SB 11 - Motor Vehicles - Establishment of School Zones
As introduced, SB 11 sought to reduce the maximum radius of a school zone from 0.5 miles to 0.1 miles. MML opposed the bill as it restricted local government authority to establish a school zone thereby reducing the safety of schoolchildren as they travel to and from school. School zones can be established by a local government, or the State highway Administration, on road segments around a school. By doing so, local governments
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are permitted to install speed cameras and also reduce the speed limit to 15 MPH.
The Senate passed the bill in an amended form, the substance of which was still problematic from MML’s perspective. The amended bill maintained the maximum radius of a school zone at 0.5 miles, but then stipulated that a school zone must be adjacent to school and may not exceed 500 feet (just under 0.1 miles) approaching or beyond the school, unless otherwise recommended by a traffic study. Currently, local governments are not required to conduct a traffic study to establish a school zone so this costly addition presented a major hurdle to expand the school zone beyond 500 feet.
MML and other stakeholders continued to oppose the bill in the House Environment and Transportation Committee. After the bill hearing and discussions with the subcommittee members, both the subcommittee and full committee voted the bill unfavorable thus ending its chance of passage in the House.
Infrastructure
SB 531 - Public Water Systems - Supplier Requirements (Water Safety and Cybersecurity Act of 2023)
SB 531 was a water privatization bill disguised as a water safety bill. The legislation, based on a national private water company model, sought to overburden medium-sized public water companies and undercut their public funding. MML testified to this point during the hearing, and the bill received no further action.
SB 407 / HB 848 - Drinking Water - Indirect Potable Reuse Pilot Program - Establishment
This bill establishes an Indirect Potable Reuse Pilot Program within the Maryland Department of the Environment (MDE). The purpose of the pilot program is to authorize the regulated use of reclaimed water as a source for “drinking water treatment facilities.” The bill authorizes MDE to review, permit, and regulate a process to use reclaimed water as a
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source for a drinking water treatment facility through a potable reuse permit, which will be active for 5 years unless extended. If successful, this pilot program could significantly increase Maryland’s drinking water supply. MML was in strong support, and the bill passed with little debate.
Open Government
SB 157 / HB 104 - Municipalities - Charter Amendments - Notice
Understanding the importance of changes to municipal charters, Maryland law requires public notices to be shared with residents whenever such a proposal is made. For decades, the only medium to share charter amendment notices was via your local newspaper of general circulation. As local newspapers have closed shops, some communities are left with only more expensive publications like the Washington Post. SB 157 / HB 104 will now provide an alternative to paying for four public notices in a newspaper of general circulation, by allowing for a hand- or
mail-delivered summary of the proposed charter amendment to every residence in lieu of three of the newspaper notices.
Public Safety
SB 330 / HB 332 - Public Safety - Law Enforcement - Body-Worn Cameras (BodyWorn Camera Appropriation and Financing Act of 2023)
A statutorily created task force, on which MML had representation, recommended the approach articulated in SB 330 / HB 332 to assist local law enforcement agencies with the cost of police body-worn cameras. MML and other stakeholders met with the bill sponsors in the interim of 2022 to discuss the bill draft and seek our input. The result is a bill supported by MML that should reduce the cost of acquiring and maintaining body-worn cameras and equipment.
Specifically, the bill allows for law enforcement agencies to use the negotiating power of the State to procure body-worn cameras and equipment. There exists the opportunity for multiple agencies to use
the same procurement and benefit from economies of scale for a larger purchase order with the result being a lower cost for everyone. The State must also publish the existence of an upcoming procurement on the eMaryland Marketplace so that other agencies are aware of the opportunity to join the procurement. The Senate bill passed both chambers in the same posture and will go to the Governor’s desk for signature.
SB 580 / HB 751 - Public Safety - Officer and Community Wellness Training Grant Fund
Recently, mental wellness has risen to the top of mind in many professions, and law enforcement is no exception. SB 580 / HB 751 creates the Officer and Community Wellness Training Grant Fund, the purpose of which is to support the mental health of law enforcement officers. Local agencies are eligible to receive grants from the Fund for mental health first aid and critical incident stress management peer support. The source of funding is at the discretion of the State’s operating budget. MML supported the bill and both version cleared the finish line.
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Budget and Tax
SB 114 - Property Tax – Real Property Tax Rate Increases – Notice Requirements
As introduced, SB 114 sought to provide alternative language to the constant yield notice requirements that called any budgetary increase in municipal revenue a local tax increase, even in cases where the property tax rate remained the same or was lower than the prior year. With MML and MACo support, the bill was amended to fully repeal the constant yield provisions and only require a public notice when a jurisdiction intends to increase the rate. To ensure taxpayers better understand their impact of assessment increases, SDAT agreed in concept to share this information post-reassessment and counties are required to share how much an increase in the assessed value contributes to each individual on their tax bill.
While county personal property tax rates are limited by their real property tax rates, municipalities have no such limit. This is one of the few tools city and town officials have at their discretion for tax equity. SB 116 / HB 450 sought to cap that authority, at first using a formula and later amended by the Senate to a flat cap at 3.75%. However, the Senate
amendments went a step further, requiring 20% of certain State aide to be withheld if a local government did not submit a local audit within one calendar year of their deadline. This concept was met with fierce resistance in the House and the bill did not move forward.
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SB 116 / HB 450 - Property Tax – Municipal Corporation Business Personal Property Tax Rate – Alterations
HB 148 - Economic DevelopmentEnterprise Zone Program – Alterations
HB 148 contained the portions of text stripped from 2022 HB 478, aimed at restricting the State’s Enterprise Zone Program and sunsetting it in 2031. MML opposed the bill on the grounds that economic development tools are necessary, and without a clear replacement for the program, it could leave cities and towns at a competitive disadvantage to jurisdictions in neighboring states. The bill did not receive a vote from the House Ways and Means Committee.
SB 418 / HB 592 - Property Tax - Agricultural Land and Improvements - Assessment
Following an interim study on the issues of assessing and incentivizing valueadded agricultural activities, SB 418 was introduced. Rather than adopting the study’s recommendation that land should be assessed at its market value and allow local governments the authority to offer tax credits to incentives these farm businesses, SB 418 created a list of “value-added agricultural activities” that would receive a tax assessment at 5-10% of their value, including wineries, breweries, distilleries, and private venues up to a certain size.
MML and MACo supported the bill with amendments to adopt the study recommendations, leaving it to local decision makers to decide who is eligible and identify a tax credit percentage that works for their budgets. Conversations reached an impasse around the crossover deadline, and the bill did not receive a vote.
Funding
HB 706 - Economic DevelopmentSustainable Communities - Business Facade Improvement Program
As introduced, HB 706 created the Business Façade Improvement Program to assist businesses located within sustainable communities improve the outside appearance of the businesses’ buildings and facilities. Originally, the program only allowed counties to apply to the
Department of Housing and Community Development for the $5 million in funding even though three-quarters of sustainable communities reside inside municipal boundaries. MML offered a friendly amendment to allow cities and towns to apply for funding as well, and the bill sponsor (Speaker Adrienne Jones) accepted our amendment. The legislation passed each chamber by overwhelming margins.
SB 650 / HB 789 - Public Safety - State Disaster Recovery Fund
SB 650, as passed, opens a couple of avenues for local governments to access disaster relief when a federal disaster declaration is not received. Based on the recommendations of a workgroup that included two municipal representatives, a State Disaster Recovery Fund was created within the Maryland Department of Emergency Management. This fund will be available to local governments to assist individuals, families, and businesses, and even cover some public facility damage costs. The bill also enables local governments to access the State’s Catastrophic Event Account for similar purposes. While the dedicated funding source was stripped from the State Disaster Recovery Fund by the House, the hope is for the Governor to include funding in the next state budget.
SB 549 / HB 552 - Economic Development
- Build Our Future Grant Pilot Program and Fund (Innovation Economy Infrastructure Act of 2023)
Part of a suite of bills introduced on behalf of the Governor’s administration, SB 549 / HB 552 provides grant opportunities to local governments to support infrastructure improvements meant to facilitate the growth and development of certain technology sectors. As is the case with many grants, local governments must match a certain portion of their award in order to qualify. This bill represents a recognition by the Administration of the role local governments play in business development and provides another funding opportunity for infrastructure projects. With MML’s support, both the
House and Senate bills passed.
HB 289 / SB 282 - Maryland Forestry Education Fund - Establishment
The Maryland Forestry Education Fund is designed to educate and provide resources to landowners, forestry boards, and local governments to achieve healthy and sustainable forests and encourage best practices. Several versions of this bill have been introduced in recent years, which MML has supported, but have failed to cross the finish line due to their high fiscal notes. This year, the annual appropriated funding was reduced from $750,000 to $250,000, and the bill finally achieved passage.
Government Liability
HB 1 / SB 686 - Civil Actions - Child Sexual Abuse - Definition, Damages, and Statute of Limitations (The Child Victims Act of 2023)
The bill expands the opportunity for victims of childhood sex abuse to hold their assailants accountable in court at any time. MML appreciated the intent of this important legislation but requested amendments to reduce government liability for civil judgments. After meaningful collaboration with the bill’s sponsors, the original increase of $800,000 to $1.5 million to a single claimant for injuries arising from an incident or occurrence was reduced to an increase from $800,000 to $890,000. The bill passed and has already been signed into law by Governor Moore.
HB 430 - Public Safety - Maryland Police Training and Standards CommissionNotification of Action Filed Against Police Officer
This bill, a repeat from 2022, reframed legal liability around law enforcement officers, applying open-ended new standards for filings against local governments. MML was concerned about the potential for a dramatic increase in liability exposure and a depletion of the hiring pool; we joined MACo and the Maryland Chiefs and Sheriffs Association in strong opposition. The bill was heavily amended to require
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a court to notify the Maryland Police Training and Standards Commission of the filing of a civil action against a police officer involving allegations of wrongful death or serious bodily injury, at which point MML was neutral. Despite a significant change in scope, the bill did not pass.
Land Use
The bill modifies the State’s policy to encourage the retention and sustainable management of forest lands by replacing the outcome of achieving no net loss of forest with the outcomes of increasing, as measured every four years, the acreage of (1) forest land in the State and (2) land in the State covered by tree canopy, for land located inside an urban
area and outside an urban area. The bill makes several changes to the Forest Conservation Act (FCA) and requires the Department of Natural Resources (DNR) to establish a workgroup to evaluate and recommend incentives for private landowners to conserve forest.
The original bill was unworkable for local governments – restrictive replanting ratios, reductions in property tax revenue, onerous variance processes, etc. MML’s original position was strong opposition. However, through multiple discussions with the bill sponsors, bill proponents, coalition partners, and other stakeholders, the bill was significantly and favorably amended and MML and MACo were able to join in a “neutral” position. Several notable provisions are listed below:
■ Replanting ratios
ɠ 1:1 for all forest cleared outside of Priority Funding Areas
ɠ ½:1 for non-priority forest
cleared inside Priority Funding Areas
ɠ 1:1 for all priority forest cleared inside Priority Funding Areas
■ Qualified Conservation
ɠ “Forest mitigation banking” under the FCA will include qualified conservation.
ɠ Qualified conservation completed in a forest mitigation bank can be used to meet up to 50% of an afforestation or reforestation requirement. If a local jurisdiction proposes, and after public comment, DNR approves a written justification for the increase, qualified conservation completed in a forest mitigation bank may be used to meet up to 60% of an afforestation or reforestation requirement, with afforestation or reforestation credit not exceeding 50% of the forest
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SB 526 / HB 723 - Natural Resources –Forest Preservation and Retention
area encumbered in perpetuity.
■ Afforestation and reforestation methods in municipalities may include:
ɠ The restoration of on- or off-site degraded forest, in which case the afforestation or reforestation credit granted may not exceed 50% of the area of forest restored.
ɠ The establishment of planted green infrastructure or planted environmental site design practices beyond the amount required under Maryland Department of the Environment (MDE) stormwater management requirements, which may be granted full credit as a mitigation technique.
■ FCA Exemptions include:
ɠ Transit-oriented development, provided that the area of forest removed must be (1) reforested
at a ratio of at least one-quarter acre replanted for each acre removed or (2) mitigated in a manner in which one-half acre of forest is permanently protected for each acre removed.
ɠ The construction of a new federal government facility projected to house the employment of at least 2,500 persons.
ɠ The construction of multifamily housing, consisting of a single structure containing at least 25 dwelling units, provided that the area of forest removed must be (1) reforested at a ratio of at least one-quarter acre replanted for each acre removed or (2) mitigated in a manner in which one-half acre of forest is permanently protected for each acre removed.
ɠ The operation of orchards and tree farms.
■ Local Forest Conservation Programs
ɠ A municipality with planning and zoning authority must develop and adopt a local forest conservation program, consistent with the intent, requirements, and standards of FCA, that meets or is more stringent than the requirements and standards established by FCA.
ɠ Local governments are authorized to adopt forest conservation thresholds and afforestation and reforestation requirements as part of a local forest conservation program that are more stringent than the forest conservation thresholds and afforestation and reforestation requirements under FCA.
ɠ If the local jurisdiction does not adopt a program, DNR must review and approve all forest conservation plans in that jurisdiction.
ɠ A municipality may assign its obligations to develop and adopt a forest conservation program
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to its home county with the approval of the county and DNR.
The bill passed both chambers and is expected to be signed by Governor Moore.
Housing
SB 382 / HB 239 - Accessory Dwelling Unit Policy Task Force
As introduced, this measure established a proscriptive task force to preempt local zoning and eventually mandate statewide Accessory Dwelling Units (ADUs). Through collaboration with MACo and the bill sponsors, the bill was amended to review existing ADU policies and make recommendations for best practices for ADU development. MACo and MML will each have 2 seats on the task force.
This bill establishes that adaptive reuse of a property to develop affordable multifamily housing is an eligible use of the proceeds of a loan for housing programs administered by the Department of Housing and Community Development (DHCD). DHCD is required to notify housing program applicants that adaptive reuse of a property to develop affordable multifamily housing is an eligible use of loan proceeds; however, the notification requirement does not apply to loan applications for any DHCD program that does not focus on housing (including programs within the Division of Neighborhood Revitalization). The bill applies to any program operated by DHCD that awards loans that may be used to develop affordable multifamily housing. However, if the laws or regulations governing a particular program establish more specific rules regarding the use of a loan for adaptive reuse, the more specific rules must apply. MML joined MACo in supporting this bill, which passed both chambers.
HB 182 / SB 335 - Real Property - Unlawfully Restrictive Covenants - Modification by Counties or Municipalities
MML was proud to support this bill, which allows a local government to modify an unlawfully restrictive covenant. Unlawfully restrictive covenants are unenforceable but discriminatory deed restrictions. Under this bill, municipalities will be empowered to remove the unlawful and offensive language.
Local Authority
SB
518 / HB 779 - Tax Sales - Revisions
with the authority to remove a property from tax sale if it has a vacant building or structure that the government intends to demolish because the building or structure is unsafe or unfit for habitation.
Elections
HB 979 - Municipal Elections – Candidates – Reports of Donations and Disbursements
HB 150 / SB 166 - Housing and Community Development - Adaptive Reuse
This legislation was designed to help local governments deal with “zombie properties,” where a private holder of a certificate of sale has not pursued or complied with a foreclosure judgment in a timely manner, allowing the property to remain in a prolonged state of disrepair. SB 518 / HB 779 allows a local government to be assigned the certificate of sale by the court if action isn’t taken by the holder within 18 months. The bills also provide local governments
As introduced, HB 979 would mandate all municipal governments to require donation and disbursement reports from local candidates and send them to the State Board of Elections. MML opposed the bill, citing member concerns about the administrative burden in small towns and potentially making it more difficult to recruit candidates for office. During the House and Senate hearings, staff also noted that there already seems to be a natural evolution toward campaign finance requirements as municipalities become larger and more complex. Hearing our concerns, the House amended the bill to include affidavits a candidate could sign in lieu of a report if they never intend to spend or raise under $1,000 and if they have spent or received less than $1,000 since filing for office or their last report. The bill did not receive a vote in the Senate Education, Energy, and the Environmental Affairs Committee.
SB 287 / HB 509 - State Board of Elections - Municipal Elections - Publication of Results on Website
As introduced, SB 287 / HB 509 required municipalities to share the results of local elections with the State Board of Elections (SBE) within 30 days of the
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election. SBE must then place the results on their website so the public at large can more easily access local election information. At the League’s Legislative Committee’s direction, MML successfully advocated for an amendment to send the results within 30 days after the election results are officially certified.
Employee/Employer
SB 828 / HB 988 - Family and Medical Leave Insurance Program – Modifications
In 2022, the General Assembly passed the Time to Care Act which established a State paid family and medical leave (PFML) program which formed the framework for how the program would operate. In this law there are two key pieces for municipal governments as employers; 1) employers with 15 or more employees are required to contribute to the State PFML Fund, and 2) employers can seek an exemption from payments to the Fund by providing a leave plan to their employees that the Department of Labor deems equivalent or better than the State Plan.
Problematic for municipal governments that are well into FY24 planning, is that the mandatory employer contributions were set to go into effect October 1, 2023 yet the State has not published any fiscal estimates of what those employer contributions might be. The State has also not established criteria or a process to assist employers in meeting the plan equivalency standard to be exempted from contributing to the State Fund.
In the fall of 2022, MML co-authored a letter outlining these issues in the law as it relates to local government budgeting. While SB 828 / HB 988 as introduced included some relief, MML pushed for a longer delay in the implementation of the PFML program. The bill passed with MML-supported amendments which: 1) require the Department of Labor to publish regulations, which will include information on the exemption for equivalent plans, by January 1, 2024 and, 2) delay the mandatory employer contributions, for non-exempt employers, until October 1, 2024. With these new dates set in law, municipalities should have plenty of time
to plan for FY 25 budgets.
SB 551 / HB 546 - Department of Service and Civic Innovation and Maryland Corps Program Service Year Option PathwaysEstablished (Serving Every Region Through Vocational Exploration Act of 2023)
Recruiting and retaining talent can be a challenging experience for many employers including municipal governments. SB 551 / HB 546 is another priority bill for the Governor’s administration and it seeks to encourage public service through new pathways within the Maryland Corps Program. A new pathway called the Young Adult Service Year Option will provide service placements to eligible young adults as an additional option to immediately pursuing post-secondary education or technical school. A second new option is the Maryland Service Year Option which seeks to equip participants in the Maryland Corps with professional development and job training while working in high-impact service placements. A stated purpose of both pathways is to strengthen a pipeline of talent into local governments to fill present and future staffing needs. MML supported this initiative and both bills passed through the legislative process.
Final Thoughts
With a new Governor, new Attorney General, new Comptroller, and over 40 new legislators following an election cycle, no one was sure what to expect for the 2023 session, which was the first fully in-person session since 2019. With the support of MML’s legislative leadership, the League channeled the renewed energy in Annapolis to form new relationships, strengthen existing ones, and secure many significant outcomes for our members.
None of this would be possible without the hard work of MML’s legislative leadership. This year’s Committee, which consisted of over 30 members from across the State, was chaired by Chair Gregg Dotson, Councilmember from North Beach, with Vice Chairs Judith “J” Davis, Councilmember from
Greenbelt, and Michael O’Connor, Mayor of Frederick. The Committee met more than 10 times in a hybrid format, where members analyzed and debated over 200 bills to determine municipal impact and monitored legislation as it moved through the process. A big thank you to all the members who answered the call when we needed it; those of you who served on the Legislative Committee, wrote emails, made phone calls, or testified at a public bill hearing-please know your actions made a difference!
To view the text and fiscal notes of the bills listed above or any legislation tracked by MML this session, please visit www. mdmunicipal.org, click on “Legislative Advocacy” and “Bill Position Summary”. This will take you to MML’s bill tracking page where you can click on the bill number. This will take you to the bill page on the Maryland General Assembly website, where you will see all relevant information pertaining to each bill tracked by MML.
This article is a collaborative effort of MML’s legislative team: Angelica Bailey Thupari, Director, Advocacy and Public Affairs; Bill Jorch, Director, Research and Policy Analysis; and Justin Fiore, Deputy Director, Advocacy and Public Affairs.
Municipal Maryland | MAY/JUNE 2023 | 25
The Maryland Municipal League representing maryland's cities and towns
Ayana Kareem SBU Underwriter
The Maryland Municipal League
Representing Maryland's Cities and Towns