The Maryland General Assembly concluded its 90-day legislative session on Monday, April 13. This was an incredibly successful year for the Maryland Municipal League (MML) including passing a priority bill for the third time in the past four years! Below is a recap of a handful of impactful bills. For a more in-depth summary, please see the article soon to be published in the Local and sign up for the Legislative Session Wrap Up webinar scheduled for April 28 from noon - 1:00 pm (Link to register).

MML Priority Bill

The Maryland Department of Labor (DoL) has released new details on the State's paid family leave program titled the Family and Medical Leave Insurance (FAMLI) Program, with some of the provisions of the law starting this year.

Additionally, DoL is hosting a webinar about the program on April 21, you can register here.

Happy Sine Die!

Join us on April 28 at noon for a detailed 2026 Legislative Session Wrap-Up webinar. We’ll break down the most impactful policy developments, unpack the outcomes of major legislation, and discuss what it all means for our communities, stakeholders, and the road ahead.

It's that time of year again as the League solicits legislative action requests (LARs) to be considered for MML priority legislation in the 2027 Maryland General Assembly session. All member municipalities and MML affiliate groups in good standing are eligible to submit up to three LARs (form). Submissions should focus on a policy area impacting the broader membership and requiring a fix through a change in State law. 

The deadline to return a completed LAR form is May 31. Additionally, each LAR submission must be approved by the elected body of the municipality or the full MML affiliate membership. The deadline to inform MML of this approval is July 1, 2026. For any questions, please contact Bill Jorch, [email protected]

Sine Die is days away!

Join us, April 28 at noon,  for the 2026 Legislative Session Wrap-up webinar focusing on reviewing key policy developments, discuss the outcomes of major legislation, and explore what these decisions mean for our communities, stakeholders, and future advocacy efforts. It will also serve as a space to ask questions to the Advocacy team regarding any policy, bills, future efforts, and next steps.

• The Goal: To evaluate and modernize the "fiscal toolbox" of local governments.
• The Focus: The task force will study current revenue sources, explore new options used in other states, and assess the impact of potential changes on the cost of living and overall affordability for residents.

1. Governor’s Signature: The bill now heads to the Governor’s desk for a formal signature.
2. Effective Date: Once signed, the Act is scheduled to take effect on July 1, 2026.
3. Task Force Convening: The newly created body will formally convene shortly after the effective date to begin its study.  

A final report of findings and recommendations is due to the General Assembly by December 1, 2026.

 

How much funding is available

There is just under $1B total available ($993M) this year.

We have some incredible momentum to share. Thanks to your collective advocacy and outreach, the push for HB 1142 is working. We are pleased to report that the House of Delegates has passed the bill in time for the crossover deadline. This is a massive step toward modernizing municipal revenue and ensuring our cities and towns have the fiscal tools they need for the future.

We owe a huge thank you to Chair Jheanelle Wilkins and the members of the House of Delegates for their leadership and for recognizing the urgency of this issue.

One of the Governor’s priority housing bills, the Starter and Silver Homes Act (SB 36 / HB 239), appears unlikely to advance this session following the crossover deadline. The bill would have significantly limited local zoning authority by prohibiting jurisdictions from establishing certain minimum lot size, setback, and dimensional standards for single-family homes, overriding locally adopted development frameworks in areas served by public water and sewer.

Neither version of the bill moved out of committee prior to crossover. House Bill 239 was not approved by the House Economic Matters Committee, and Senate Bill 36 did not receive a vote in the Senate Education, Energy, and the Environment Committee, as committees instead prioritized other housing legislation this session.

The American Rescue Plan Act's (ARPA) State and Local Fiscal Recovery Funds (SLFRF) program was a historic investment in communities. It provided direct funding to cities, towns and villages to help communities weather and recover from the COVID-19 pandemic. On its 5-year anniversary, the National League of Cities (NLC) has published a report looking back on the wide-ranging impact SLFRF has had on communities and how federal funding dollars can be administered in the future to prioritize both efficiency and federal oversight. The resource page for the report can be found here and a direct link to the report can be found here.

For more information please contact Bill Jorch, [email protected]

Last week, MML staff testified in opposition to HB 831, legislation that would allow all local government employees to participate in a union and collectively bargain. Currently, local governments may allow certain groups of employees (ex. law enforcement, public works) to unionize and collectively bargain but it is at the employer's discretion. The employer can also set the parameters around the negotiations including what types of compensation and benefits are eligible to be negotiated and how an impasse in discussions is resolved. This bill would turn the current arrangement on its head. MML noted the direct fiscal costs associated with increased negotiated compensation and the administrative burden of detailed negotiations and managing potentially multiple contracts as reasons for opposition to the bill.

The Senate cross-file, SB 922 has its public bill hearing on March 12. For more information please contact Bill Jorch, [email protected].

Last week, MML staff testified on the third bill in Governor Moore's 2026 housing package, the Maryland Transit and Housing Opportunities Act. As presented, this bill would automatically designate transit-oriented development (TOD) areas served by frequent rail service as Enterprise Zones, and delay the collection of development impact fees and excise taxes until after construction is complete. It also restricts the authority of local jurisdictions to impose minimum parking requirements, and mandates allowance for mixed-use development within specified distances of qualifying rail stations. 

The Maryland Municipal League's position is Favorable with Amendments. We are seeking amendments to address the automatic Enterprise Zone designation, and the impact fee/excise tax payment delay. Conversations with the Administration and General Assembly Committees are ongoing. Contact Angelica Bailey Thupari ([email protected]) with questions.  

 

The Maryland Department of Information Technology has issued a new Cybersecurity and Privacy Policy Suite establishing unified security standards for all executive branch agencies to strengthen protection of state systems, data, and services against increasingly sophisticated threats.

Last week MML testified in opposition to SB 3 / HB 188, a bill that alters certain aspects of the State's unemployment insurance system. The most impactful provision for municipal governments is the increase in weekly benefit amount to successful claimants. Municipal governments are typically "reimbursing employers" meaning that they reimburse the unemployment insurance trust fund when a former employee makes a successful claim. This means that municipal government expenditures are tied to the amount a claimant receives, dollar-for-dollar. This is different than private sector employers, which regularly pay into the Fund based on the taxable wage base.

While the League recognizes that the unemployment insurance weekly benefit amount has not been updated in many years, the provisions of the bill would raise the cost to municipal governments to a level that would pose a significant burden.

MML testified Favorable with Amendments on SB 389, which would modify the State’s Transit-Oriented Development (TOD) framework. The bill would automatically designate qualifying TODs as Enterprise Zones and require that development impact fees and excise taxes for residential TOD projects be collected only after construction is complete and a certificate of occupancy is issued.

MML supports transit-oriented development and rail-adjacent housing growth. However, we raised concerns that automatic Enterprise Zone designation would apply a 10-year local property tax credit without local approval, creating significant fiscal implications for municipalities. We also expressed concern that delaying impact fee collection shifts infrastructure financing risk to local governments.

MML testified on SB 325 and cross-file HB 548, which would create a framework for permitting and vested rights protections. Once a substantially complete development application is submitted, the project would become subject only to the laws in effect at that time, and vesting rights would be established for a defined period.

In testimony, MML supported measures that reduce regulatory uncertainty for developers, but emphasized that vested rights and permitting timelines must preserve local oversight and stay aligned with municipal comprehensive plans.