Subject
title
Consider Approval of 2026 Proposed Maryland Municipal League Legislative Action Requests
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Department
City Manager's Office (CMO)
Recommendation
Discuss the recommended 2026 MML Legislative Action Requests and approve three for submittal to the Maryland Municipal League.
Discussion
Consideration of proposed Maryland Municipal League (MML) Legislative Action Requests (LAR) is the first step in the Mayor and Council’s development of the City of Rockville’s comprehensive 2026 State legislative program. MML has invited each member municipality to submit as many as three LARs for consideration to be included in the League’s priority program. MML members are required to have their elected officials approve the LARs by July 1, 2025.
LARs are issues that are resolved through State legislation and have a broad impact on the MML membership. The League does not typically advocate for issues that impact a small number of municipalities and does not engage with State legislation introduced by local Delegations. As the lead entity with whom decision makers in Annapolis engage on State legislation affecting municipalities, MML focuses on high-profile issues with significant impact on its membership. The Legislative Committee meets in the summer and selects up to four priority program issues to recommend to the Board of Directors for approval.
Rockville-specific State legislative issues are discussed and approved by the Mayor and Council in the fall, after the MML priority program is adopted. Rockville’s approved LARs are incorporated into the City’s comprehensive State legislative priority program. In recent years, advocating in support of educational needs across the spectrum, including capital and operating funding, legislation in support of the City’s vision zero and pedestrian master plan, climate action plan goals, and legislation supporting renters are examples of items that are Rockville-specific that have been included in Rockville’s State legislative program. In recent years, the Mayor and Council’s comprehensive State legislative program has included MML-adopted priorities and Rockville-specific initiatives.
MML’s LAR process includes a limit on repeat requests. In a four-year term (Governor and General Assembly), MML will not accept an LAR that is similar to or substantially similar to an item that has not been selected by the Legislative Committee twice in the term. The City’s previous LAR for legislation would expand access to the State property tax credit to low- and medium-income homeowners, including senior residents, and individuals with disabilities, providing relief from inflationary pressures driving cost-of-living increases, was not selected by the MML Legislative Committee in 2024 and 2025. Therefore, per MML’s requirements, Rockville is precluded from submitting an LAR on this issue for the 2026 Session. Rockville can continue to advocate for this priority as part of the City’s State legislative priorities program.
The recommended 2026 LARs are based on high-priority issues of interest to the Mayor and Council, and legislation the body supported in the 2025 Session. Staff has included four potential LARs for consideration. The Mayor and Council can discuss and select the three LARs that are of most importance to the City.
Proposed 2026 Legislative Action Requests
1. Admissions and Amusement Tax Legislation
This issue has been an MML and a Rockville priority in the 2024 and 2025 Sessions. SB 324 - Admissions and Amusement Tax - Food and Beverage was provided with a favorable report by the Senate Budget and Taxation Committee in 2025. However, the legislation failed. The progress made in the 2025 Session indicates increasing awareness in the General Assembly of the need for expanded municipal revenue sources. MML is interested in continued advocacy in support of this legislation.
The legislation would expand the ability of counties and municipalities to raise resources beyond the property tax by expanding the Admissions and Amusement Tax to capture revenue from food and beverage for all on-site consumption, which includes restaurants. The bill provides enabling authority for local governments to charge up to 3% for on-site food and beverage purchases at establishments that have facilities for the consumption of food and beverages on the premises.
The expansion of the Admissions and Amusement Tax would require individuals that visit establishments in municipalities and counties and benefit from local government services to pay the tax. If this legislation were to pass, it would relieve pressures on the property tax, which is solely funded by property owners in local communities.
2. Statewide Stop Sign Monitoring Systems Legislation
In the 2025 Session, the Montgomery County Delegation sponsored a local Bill (4-25) which was approved by the Montgomery County Delegation and was introduced as HB 1032. The City supported this bill. While HB 1032 passed the House and Senate, it did not receive concurrence from the chamber of origin (House) and failed.
The amended bill authorized the use of stop sign monitoring technology in Montgomery County and Baltimore City in school zones under a pilot program existing in Prince George’s County. Those in violation would be subject to a $40 fine. By December 1, 2027, jurisdictions would be required to provide a report to the Governor and General Assembly and include information relating to program data, cost, and implementation. The bill would have taken effect on July 1, 2025, and terminated on June 30, 2029.
It is recommended that the LAR broaden the application of the bill to apply across the State, which would meet a key criterion for MML to consider the LAR. This legislation aligns with the Mayor and Council’s Vision Zero priority.
3. Preserve and Protect Municipal Highway User Revenues and Police Aid
This Legislative Action Request seeks to preserve full funding for Municipal Highway User Revenue and Police Aid funding.
Highway User Revenues (HUR) are the share of the gas tax and vehicle titling tax dedicated to the construction and maintenance of local roadways and bridges. All the revenues are levied by the State, as there are no local gas taxes in Maryland. Since local governments maintain most roads in Maryland, the State has historically shared a portion of these revenues through a formula with County and municipal governments. Municipal Highway User Revenues help to fund municipal transportation projects, including street and sidewalk maintenance, and pedestrian safety initiatives. In the 2025 Session, FY26 Municipal HURs were preserved. Rockville’s FY26 Highway User Revenue allocation is $4.7 million.
The State Aid for Police Protection Fund is a formula-driven funding program used to supplement resources for police protection in counties and municipalities. The State funds provide additional revenue to support the operational costs of local and county police agencies by providing additional funds for salaries, equipment, and other resources. Rockville’s FY26 Police aid allocation from the State is $1.1 million.
While the General Assembly’s actions in the 2025 Session addressed a projected $2.8 billion gap for FY26, the outlook in future years is negative. According to the Maryland Department of Legislative Services, the FY 27 structural gap is $155 million, $1.9 billion in FY28, $2.3 billion in FY29, and $3.0 billion in FY30. Continued uncertainty related to the Federal transition, budget, and tax measures could result in additional negative impacts on the State. It will be critical in the 2026 Session and beyond to preserve these State resources that help the City to maintain its transportation infrastructure and provide Police protection for Rockville residents. This LAR aligns with the Mayor and Council’s public safety and stewardship of infrastructure priorities.
4. Regional Transportation Authorities Legislation
In the 2025 Session, Rockville supported HB 1073/SB 881 - Regional Transportation Authorities - Transportation, sponsored by Delegate Spiegel. The legislation establishes regional transportation authorities in three regions: Baltimore, Capital, and Southern Maryland for the purpose of implementing regional transportation plans. A transportation surcharge is imposed in those regions on retail sales, use of a taxable service, hotel lodging, and transfer of real property.
Thirty percent of revenue generated in a municipality is distributed to that municipality (same for counties), and 70 percent is distributed to the State. Revenue may only be used for transportation purposes. This legislation is based on Virginia’s model and offers a solution to the State’s waning transportation trust fund revenues resulting from increased use of high-efficiency, hybrid, and electric vehicles. There was no further action after the bills were heard, and the legislation failed. This LAR aligns with the Mayor and Council’s Vision Zero priority as it would generate additional funding for transportation infrastructure.
Impact Statements
Equity - The statewide Stop sign monitoring LAR supports equity in that the legislation would increase safety and support communities that do not have access to a vehicle and walk, roll, and use public transportation. The Admission and Amusement Tax expansion LAR, Preservation of Municipal Highway User Revenue and Police Aid, and the Regional Transportation LARS also support equity as they would generate or preserve resources used to invest in public infrastructure used by communities who walk, bike, roll, and use public transportation.
Environment - The LAR for the Preservation of Municipal Highway Revenues and Police Aid and the LAR for Regional Transportation Authority legislation supports additional investment in public infrastructure designed to facilitate and enhance safety for walking, rolling and use of transit which supports the environment by reducing greenhouse gas emissions and aligns with Rockville’s Climate Action Plan goals.
Economy - The Admissions and Amusement LAR and the Regional Transportation Authority LAR would generate additional municipal revenues, which could stimulate Rockville's investment in public infrastructure and other critical city services. Quality public infrastructure may attract private development in the City, which would generate additional economic activity in Rockville.
Mayor and Council History
The Mayor and Council annually discuss and approve LAR items to forward to MML for consideration in the League’s priority program for the next General Assembly Session.
Next Steps
Staff will forward the approved LARs to MML for consideration by the League’s Legislative Committee.
Staff will update the Mayor and Council on the priority issues that are approved for the 2026 MML priority program.
The Mayor and Council will consider and approve Rockville-specific priorities in its discussion of the City’s comprehensive 2026 State legislative priorities program in the early fall of 2025 (TBD), after MML’s priorities are adopted.