Subject
title
Consideration of 2024 State Legislation
end
Department
City Manager's Office (CMO)
Recommendation
Staff recommends the Mayor and Council consider 2024 State legislation and provide direction to staff.
Discussion
During the annual General Assembly Session staff forwards summary information and recommendations for action on State legislation that align with Rockville priorities and/or have impact to the City. At the time of the preparation of this staff report (2/14/24), staff is continuing to review and assess bills with impact. If there are additional bills that warrant a recommendation for potential action, the information will be forwarded by email to the Mayor and Council in advance of the February 26 meeting. The information will be posted to the agenda center so that it is accessible to the public.
During the Mayor and Council’s discussion of 2024 State legislation at the February 12 meeting, they requested that staff return with additional information pertaining to three follow-up items:
• SB 484 - Housing Expansion and Affordability Act of 2024.
• SB 537 - Cannabis - Licensee Locations - Restrictions.
• Recommendations regarding environmental bills of interest to the Environment Commission and city staff for the Mayor and Council to consider taking a position on.
Staff has conducted additional research and gathered more information for the Mayor and Council’s consideration. The following section of the report provides supplemental information.
SB 484 - Housing Expansion and Affordability https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/SB0484Act of 2024
Staff continues to recommend a support with amendment position on SB 484 with the following comments on the legislation:
Number of Public Hearings Permitted
After further review, staff confirmed that the legislation allows a public hearing before each of the bodies listed including the local governing body, the planning commission, historic district commission and the board of appeals. Therefore, the bill does not limit the total number of public hearings for a project to one. For example, a project plan could have one hearing before the Planning Commission and the Mayor and Council. With this confirmation, staff believes that the provisions in the bill are sufficient, and an amendment is not needed. According to the Community Planning and Development Services Department (CPDS), it is rare that a body would have more than one public hearing. Therefore, it is not necessary to forward the bill to the Planning Commission.
Language Pertaining to Modular Homes
Staff recommends that the City request an amendment in section 4-104 for the language to be changed from manufactured to modular homes. These homes are built in a factory in two or more modules that meets the State or local building codes where the house will be located, and where such modules are transported to the building site, installed on foundations, and completed.
Distance from Rail Stations
Staff recommends that the City request an amendment that reduces the 1-mile distance requirement from a rail station (Metro and any passenger rail stations are included in the definition) to one quarter to one half mile. At Attachment A is a map that illustrates the one-mile radius from rail stations in or adjacent to Rockville.
According to the Community Planning and Development Services Department, one mile from rail stations covers much of the City including all of Rockville Pike, most of Hungerford/Frederick Road, and large portions of the surrounding neighborhoods. Within one quarter to one half mile, higher density residential may be appropriate and generally consistent with Rockville’s Comprehensive Plan. Unless the radius is reduced, existing neighborhoods could have more units above what the Comprehensive Plan recommends. For most of these residential areas, the Comprehensive Plan recommends that the single-family units remain the same with the allowance for accessory dwelling units.
Effective Date of the Bill
If the bill were to be enacted, it would take effect on October 24. Staff recommends that the date for the bill to take effect be extended to March 1, 2025, so that local governments have sufficient time to amend their zoning ordinances to align with the requirements in the legislation.
AFPO Language
The legislation states that Adequate Public Facilities Ordinances cannot be used to deny a permit for affordable housing projects financed by Low Income Housing Tax credits or other affordable housing financing programs managed by the State’s Department Housing and Community Development. After fifteen years, this provision would no longer be in effect.
Staff recommends that the City request an amendment that would permit a municipality’s APFO requirements to be met so that affordable housing developments have equitable access to infrastructure and amenities. The projects in the legislation that receive funding from the State should include funds to cover the cost of providing the necessary infrastructure to support the project.
Unreasonable Limitation or Requirement Language
Per the February 12 staff recommendations at Attachment B, staff has concerns with the vague language in the bill stated as an “unreasonable limitation.” This raises questions regarding how this would work in practice when applied to requirements such as height, setbacks, and parking. Additionally, there is a concern that this could preempt the City’s zoning ordinance in a locally designated historic district if the HDC were to find a proposal to not be consistent with the size, massing and character of an existing historic district. For these reasons, staff recommends that the City request an amendment that “unreasonable limitation” be further and more clearly defined.
Maryland Municipal League Engagement with SB 484
As noted in the February 12 staff report, MML is taking a support with amendments position on this bill. They are engaged in conversation with the Moore Administration. The League is advocating for amendments relating to reduced density percentages, reduced rail station distance, changing “manufactured” to “modular,” infrastructure capacity, local government involvement in decision making, including the “unreasonable limitations” and the APFO application. MML noted that after the first hearing in the House, the discussion will shift to the General Assembly as they deliberate the merits of the bill. Staff shared the City’s comments on SB 484 with MML. The League’s advocacy is in alignment with staff’s comments.
Staff will continue to stay engaged with MML and coordinate efforts. They anticipate it will take most or all the Session for the General Assembly to consider the legislation. They will share a copy of their testimony that they plan to provide at the February 20 House hearing. Staff will share it with the Mayor and Council. The Senate hearing is scheduled for March 1.
SB 537 - Cannabis Licensee Locations - Restrictions
https://mgaleg.maryland.gov/2024RS/bills/sb/sb0537F.pdf
This bill attempts to clarify the zoning restrictions that were included in the omnibus cannabis legislation that was enacted 2023. The legislation implemented the regulatory framework for the legalization of recreational cannabis in the State of Maryland, which took effect on July 1, 2023. An overview of the legislation is as follows:
• “Unduly burden” means a local jurisdiction can’t impose a distance requirement on a cannabis licensee from certain sensitive properties that is more restrictive than existing State law.
• Clarifies that distance requirements can only be imposed on a cannabis licensee against pre-existing sensitive properties. Included in preexisting areas are playgrounds, recreation centers, public parks, and places of worship.
• SB 537 adds places of worship to the list of items that constitutes preexisting areas.
• Last year’s legislation prohibited an establishment from locating within 500 feet of a pre-existing primary or secondary school or a licensed childcare or registered family day care. The 2023 bill also requires that a dispensary not locate within 1,000 feet of another dispensary.
• Local governments may reduce, but not increase, those distances.
• Local governments may not establish zoning requirements that are more burdensome than those imposed on alcohol retail stores.
• Local governments may not impose zoning requirements on outdoor cannabis grower that is more restrictive than that imposed on a hemp farm on 6/30/23.
Attachment C is a map that shows where cannabis dispensaries could be in Rockville, per State law. Since places of worship may locate in vacant non-residential spaces, staff is not able to map the complete limitations of the location of these establishments. Under the proposed law, dispensaries can only be located in retail zones in the city. However, there would be opportunities for the dispensaries to locate along our corridors such as MD 355, Seven Locks Road, Shady Grove Road (see attachment C) and be within a non-residential zoning district. Presently, the two existing cannabis dispensaries are available for residents to obtain cannabis products for medical and recreational use.
Staff recommends that Rockville request an amendment for the distances between sensitive properties and cannabis dispensaries and the allowable distance between the dispensaries be increased. The distance between the cannabis dispensary and sensitive properties could be suggested to increase to 1,000 feet or more and the distance between dispensaries to be 1,500 feet or more. The City prohibits alcohol retail in single family residential zones. SB 537 permits the same prohibition of cannabis establishments in single family residential zones (it tethers cannabis to alcohol regulation) and is consistent with Rockville’s requirements. Staff recommends a position of support with amendments.
Engagement with MML
MML is coordinating its advocacy efforts with the Maryland Association of counties, to present a united front and a strong message before the General Assembly. The League is working with MACO on amendments. They are still under development. MML and MACO are working together to try find common themes and balance the differing needs of counties and municipalities. They are focused on the distances between sensitive properties and the distance between dispensaries, comparable business types that go beyond alcohol, and the definition of an outdoor cannabis grower. MML will provide a copy of the testimony when available and staff will share it with the Mayor and Council. Additionally, staff will stay engaged with MML to align advocacy efforts.
Environmental Legislation of Interest
The Environment Commission discussed 2024 legislation on February 8th. The Commission did not vote on a particular set of bills; instead, members volunteered to research several bills that align with the Climate Action Plan and share comments with staff. To date, staff has not received comments on specific bills. During previous legislative sessions, Maryland established significant carbon reducing legislation, such as the Climate Solutions Now Act. The 2024 legislation is putting the pieces in place to implement these goals. With assistance from MML and the City’s lobbyist, staff identified the following bills that align with the Climate Action Plan.
SB 783/HB 1435: Renewable Energy - Net Energy Metering Aggregation, Solar Renewable Energy Credits, and Taxes on Solar Energy Generating https://mgaleg.maryland.gov/2024RS/bills/sb/sb0783F.pdf Systems (Brighter Tomorrow Act)
The legislation codifies recommendations from the Maryland Task Force to Study Solar Incentives and removes barriers to installing net-metered small solar systems and establishes a Small Solar Energy Generating System Incentive Program needed to ensure that the State meets the solar energy goals established in Maryland’s Renewable Portfolio Standard (RPS). Net metering is a billing system that credits solar energy system owners for the electricity that they generate and add to the grid.
The Incentive Program establishes a certification program for participating small solar systems and provides small solar 150% increase in renewable energy credits and small systems located on rooftops, parking canopy, or brownfields 200% renewable energy credits which helps offset the costs of building smaller systems in urban and suburban environments. The bills also eliminate state property taxes for rooftop or parking canopy solar, and allows counties and municipalities to exempt parking canopy solar from their local property tax. These measures incentivize solar development. The legislation aligns well with and urban/suburban jurisdictions like Rockville, which are essentially “built out” and have very limited open areas.
The bills align with the following actions in Rockville’s Climate Action Plan, including:
• Action C-07: Advocate to increase the Maryland Renewable Portfolio Standard by 2030;
• Action C-09: Promote private solar and geothermal installations through the solar co-op program, streamlined permitting, and expanding access to low-to-moderate income residents; and
• Action M-04: Identify and install feasible solar photovoltaic systems on City property.
Staff recommends that the Mayor and Council support the bills. Written testimony is recommended. The hearing in the House is on February 29 and the hearing in the Senate is on March 7.
Other Bills of Interest
HB 601/SB 442 - Street Racing and Exhibition Driving - Prohibited Acts, Enforcement, Penalties https://mgaleg.maryland.gov/2024RS/bills/hb/hb0601F.pdfon Driving.
• This bill increases penalties and points assessments for violations related to participation in racing or speed contests.
• The bill also establishes a statewide prohibition on exhibition driving on any highway or private property that is used for driving by the public.
• By expanding application of an existing provision, the bill establishes a statewide prohibition on exhibition driving, racing, and other related activities in a special event zone.
• The bill also alters certain penalties and points assessments for certain motor vehicle violations related to participation in a race or speed contest.
For additional details, please see the Fiscal and Policy Note prepared by the Maryland Department of Legislative services at the attached linkhttps://mgaleg.maryland.gov/2024RS/fnotes/bil_0001/hb0601.pdf
Staff reviewed the legislation and assessed whether it has any impact on Rockville. From a historical perspective, exhibition driving has not been an issue that the City has engaged with.
According to the Rockville City Police Department, exhibition driving is a problem that is occurring more prevalently in Montgomery County and across the State. In Rockville, there have recently has been a smaller number of reports. The City Police indicated that there was a pop-up car meeting in King Farm and one along East Gude Drive. During these incidents, very large numbers of cars (in the hundreds) gather in one location, there is excessively loud noise, with drivers maneuvering their vehicles in an unsafe manner. This is disruptive to the peace and creates unsafe conditions in neighborhoods. The Rockville City Police noted support for the legislation as it would provide additional tools for law enforcement to address this issue. Staff recommends the City send written testimony in support of the legislation. The hearings occurred on February 13 and 15.
HB 1306 Administration and Amusement Tax - Food and Beverages
https://mgaleg.maryland.gov/2024RS/bills/hb/hb1306F.pdf
This legislation is an MML priority which has been endorsed as part of Rockville’s 2024 State legislative priorities. The goal is to pursue solutions for Maryland municipalities to expand their limited options for revenue generation.
An overview of the legislation is as follows:
• The legislation authorizes local governments to expand the Administration and Amusement tax to capture revenue from food and beverage for all on-site consumption, which includes restaurants.
• Current law ties the tax to entertainment or services that support entertainment.
• Under current law, the tax can only be applied to an establishment that serves food for on-site consumption if they provide live music, dancing, or other entertainment.
• Establishments in Rockville that currently pay the tax include movie theaters, athletic facilities, athletic equipment rentals, and private pools.
• The bill would expand authority that is only permitted in Ocean City, MD.
• The legislation creates a special 2% for Administration and Amusement tax food and beverages. This tax is not subject to the 10% cap in current law that states that the Administration and Amusement tax and any sales and local tax (combined) cannot exceed 10%.
Staff recommends a position of support for the legislation. This bill was very recently discussed by the MML legislative committee. Since the bill hearing is scheduled for February 27, staff will follow-up with recommended written testimony via email, that would need to be approved before the February 26 meeting to meet the submission deadline.
Next Steps
For any bills that the Mayor and Council choose to take a position, staff will work with the designated Mayor and Council member to draft and finalize testimony and share it with all elected officials. Rockville’s State lobbyists will assist the City with testimony sign-ups and submittals to General Assembly committees.