Maryland Code § PU-23-204

Section PU-23-204
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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.
§23-205. IN EFFECT
// EFFECTIVE UNTIL JUNE 30, 2034 PER CHAPTER 679 OF 2024 //
(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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