State Board of Morticians and Funeral Directors – Board Operations and Regulation of Crematories and Reduction Facilities
HB0698 requires certain Maryland counties that impose development impact fees, surcharges, or excise taxes to file annual reports on those revenues and their use. By July 1 each year, covered counties must report to the Governor, the General Assembly, and the Department of Planning the total amounts collected from new development, where the development is located, the fee or tax formulas and rates used, and how much of the money was spent on capital improvement projects such as transportation, school construction or maintenance, and other eligible infrastructure projects. Counties must also identify the local laws or ordinances that authorize these charges.
The bill also creates a separate reporting requirement for counties to identify the local laws that authorize the collection and expenditure of these development-related fees and taxes. Beginning July 1, 2026, counties must report any new or amended local law of this kind to the Department of Planning, and the reports must be made publicly available on county websites or through other reasonable means if a county does not maintain a website. Counties may incorporate the required information into another report already required under the Local Government Article.
The bill adds new Section 20-125 to the Local Government Article and expands state oversight and public transparency for county development impact fees, surcharges, and excise taxes. It does not authorize new fees or change the substantive standards for imposing them, but it does require counties to document collections, geographic distribution, rates or formulas, expenditures, and the local legal authority for these charges. Counties covered include charter counties, code counties with public local laws, and commission counties that have been authorized and have enacted such charges. The reporting obligations begin October 1, 2025, with the first local-law identification report due July 1, 2026.
The bill appears to have been viewed generally as a transparency and accountability measure rather than a major policy change. The statutory findings reference the U.S. Supreme Court’s Sheetz decision, suggesting an intent to improve documentation and oversight of development exactions in light of constitutional scrutiny. No committee transcript or vote record was provided, so the available record does not show formal opposition or support beyond the bill’s enactment.
The main policy issue implicit in the bill is the level of transparency and state oversight counties should have to provide regarding development-related fees and how those revenues are spent. Counties that rely on these charges may view the reporting requirements as an administrative burden, especially the need to track amounts by district, location, and project type, while supporters would likely emphasize public accountability and the ability to verify that revenues are used for related capital improvements. The bill also reflects broader concerns about whether development exactions are properly tied to the impacts of new development, but the text itself does not alter the legal standards for imposing them.