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- The Maryland Legislation Page is where you will find the latest updates on legislation that affects you and your business.
- 2011 Maryland Legislative Summary
These are some relevant highlights of the past 2011 session.
SB 475 -Apprentice Plumbing Licenses. This bill passed the Senate but died in the Economic Matters Committee. It prohibited the State Board of Plumbing from renewing specified apprentice plumber licenses or apprentice natural gas fitters licenses for more than three consecutive terms if the licensee has not taken or registered to take a journey plumber examination or journeyman gas fitters examination.
HB 969 – Building Codes – International Code. This bill died in Economic Matters after we and the Department testified against it. Requiring the Department of Housing and Community Development, rather than the State Board of Plumbing and the State Board of Heating, Ventilation, Air-Conditioning, and Refrigeration Contractors, to adopt a State Plumbing Code and a State Heating, Ventilation, Air-Conditioning, and Refrigeration Code; altering a specified provision authorizing the State Board of Plumbing to adopt enforcement regulations; requiring the Department to adopt specified international plumbing, fuel gas, and mechanical codes
Senate Bill 876/House Bill 1242 (both passed) establishes a $40 fee for a plumber’s license.
Nitrogen Removing Septic System Technologies. Maryland’s Watershed Improvement Program builds on existing State-directed restoration efforts and identifies options to reduce nitrogen and phosphorus from all major sources, such as wastewater, storm water runoff, septic systems, agriculture, and air pollution. As part of its WIP, the Maryland Department of the Environment has estimated that 3,000 septic system upgrades in Maryland will be completed through calendar 2011 and is planning to upgrade 600 systems annually from 2012 to 2017, with a goal of upgrading a total of 5,700 systems between 2010 and 2017.
Several existing laws promote the use of septic systems with nitrogen removal technologies or restrict the use of septic systems that do not utilize these technologies. For example, the Bay Restoration Fund, is financed in part by a fee (generally $30 annually) assessed on septic systems users, 60% of which is distributed to the Septics Account in MDE to provide grants and loans that are generally used to cover some or all of the cost of repairing, replacing, or upgrading a septic system to one that utilizes best available technology for nitrogen removal.
In addition, Chapter 280 of 2009 prohibits a person from newly installing or replacing a failing septic system on property in the Chesapeake and Atlantic Coastal Bays Critical Area (Critical Area) unless the installed system utilizes the best available nitrogen removal technology. MDE is required to assist homeowners in upgrading a septic system with money authorized for this purpose from the Septics Account if sufficient funds are available.
Senate Bill 160/House Bill 177 (both failed) would have expanded the current prohibition pertaining to the installation of new septic systems to apply to the entire watersheds of the Chesapeake and Atlantic Coastal Bays, instead of the much smaller Critical Area. The bills also would have required MDE to assist homeowners in upgrading septic systems if sufficient funds had been available from the Septics Account.
Uses of the Septics Account: Originally, grants and loans made from funds within the Septics Account were used to cover the cost of repairing, replacing, or upgrading a septic system, or for covering the difference in cost between a new conventional system and one utilizing the best available technology for nitrogen removal.
Solar and Wind Energy Generally, the sale of electricity for residential use is exempt from the State sales and use tax. Senate Bill 398/House Bill 502 (both passed) exempt the sale of electricity generated by solar energy equipment or residential wind energy equipment for use in residential property owned by an eligible customer-generator from the State sales and use tax. Senate Bill 398/House Bill 502 are intended to provide individuals who receive electricity generated by solar or wind energy equipment, whether the equipment is owned by them or by another person, the same sales tax exemption for the purchase of electricity as if it were provided to them under a rate schedule on file with the Public Service Commission.
Solar Water Heating The U.S. Department of Energy (DOE) indicates that solar hot water is one of the most cost-effective ways to incorporate renewable technologies into a building and that a typical residential solar hot water system reduces the need for conventional water heating by about two-thirds.
Senate Bill 717/House Bill 933 (both passed) are Administration-supported bills that establish solar water heating systems as a Tier 1 renewable source eligible to meet the Tier 1 solar portion of RPS. An owner of a solar water heating system installed on or after June 1, 2011, may receive solar renewable energy credits (SRECs) equal to the amount of electricity saved by using a solar water heating system. The bills specify how SRECs from a solar water heating system are calculated, establish metering requirements for commercial customers, and establish a maximum limit on the number of SRECs that a residential solar water heating system may generate in any one year. Granting ownership of SRECs to an owner of a solar water heating system significantly reduces installation costs and provides a meaningful benefit to both households and small businesses that purchase these energy conservation systems.
“Green” Buildings While State law requires DHCD to adopt certain building standards, including standards for energy efficiency or “high-performance,” for State buildings and schools, there are no comprehensive “green” building standards with respect to residential structures.
House Bill 630 (Ch. 135) requires DHCD to encourage the construction of
new “high-performance homes” which are defined as new residential structures that meet or exceed the current version of either the Silver rating of the International Code Council’s 700 National Green Building Standards or the Silver rating of the U.S. Green Building Council’s LEED (Leadership in Energy and Environmental Design) for Homes Rating System. In addition, House Bill 972 (passed) authorizes DHCD to adopt by regulation the International Green Construction Code (IGCC).
The bill also authorizes local governments to adopt IGCC regardless of whether DHCD adopts IGCC and to adopt amendments to IGCC. IGCC is a new model code, scheduled to have the first edition published in 2012, that addresses green building design and performance and works as an overlay with, rather than an alternative to, existing building codes.
Vendor Collection Credit For the expense of collecting and remitting to the Comptroller the State sales and use tax, current law allows vendors who file timely returns a credit against the gross tax remitted. Under current law, the $500 per filing period cap on the vendor credit is scheduled to expire June 30, 2011. House Bill 72 repeals the June 30, 2011, termination date applicable to this provision, making the $500 credit limit per filing period permanent.
Employer Use of Credit Reports Senate Bill 132/House Bill 87 (both passed) limit an employer’s ability to use an individual’s credit report or credit history to deny employment to a job applicant, discharge an employee, or determine a job applicant’s or employee’s compensation or terms of employment.
An employer may request, or use the credit report or credit history of a job applicant or employee, if the individual has received an offer of employment and the employer has a bona fide, job-related reason, for requesting the information. In addition, only certain positions or types of employment fall under the bona fide purposes established by the Act for requesting or using credit reports or credit histories. Certain types of employment or businesses are exempt from the Act’s requirements including financial institutions, and if federal law requires credit report or credit history checks as a condition of employment for a job.
If an employer violates the provisions of the Act, the aggrieved job applicant or employee may file a written complaint with the Commissioner of Labor and Industry. If the commissioner determines that the employer has committed a violation of the Act, the commissioner must try to resolve the matter informally. If the matter cannot be resolved informally, the commissioner may assess a fine against the employer not exceeding $500 for a first offense, or up to $2,500 for any subsequent offenses. Upon failure of the employer to comply with the administrative procedures if a complaint
was filed, the bill authorizes the commissioner or the job applicant or employee to bring an action to the circuit court where the employer or job applicant or employee is located.
Alcoholic Beverage Taxes The General Assembly did pass bills to increase taxes on alcoholic beverages in the State. Senate Bill 994 and House Bill 1213 (both passed) increase the State sales and use tax rate imposed on alcoholic beverages from 6% to 9%.
Direct Wine Shipment The three-tier system for the manufacturer, distribution, and retail sale of all alcoholic beverages, including wine, that Maryland adopted when Prohibition ended in 1933 has prevented an out-of-state winery to bypass the wholesaler tier and ship its product directly to a Maryland consumer.
Senate Bill 248/House Bill 1175 (both passed) repeal the old direct wine seller’s permit and replace it with a direct wine shipper’s permit.
The bills require that a person obtain a direct wine shipper’s permit from the
Comptroller’s Office before the person may engage in shipping wine directly to a personal consumer in the State.
The direct wine shipper must ensure that all containers of wine shipped directly to a consumer in the State are conspicuously labeled with
- (1) the name of the direct wine shipper;
(2) the name and address of the consumer who is the intended recipient; and
(3) the words “Contains Alcohol; Signature of Person at Least 21 Years of Age Required for Delivery.” A direct wine shipper must also meet several financial reporting requirements.
A direct wine shipper is prohibited from shipping more than 18 9-liter cases of wine annually to a single delivery address or delivering wine on Sunday to an address in the State.
A shipment from outside the State may not be delivered by the direct wine shipper but instead must be delivered in the State by a holder of a common carrier permit issued by the Comptroller. Also, the shipment must be accompanied by a shipping label that clearly indicates the name of the direct shipper and the name and address of the recipient. To complete delivery of a shipment, the common carrier must require the signature of the consumer or another individual at the address and photo identification demonstrating that the individual is at least 21 years old.
To receive a direct shipment of wine, a personal consumer in the State must be at least 21 years old. In addition, the bill stipulates that a wine shipment may be ordered or purchased through a computer network. A person who receives a wine shipment can only use the wine for personal consumption and not resell it.
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