Hundreds of laws passed during the 2026 Maryland legislative session take effect on Wednesday, July 1, including measures related to local government revenue, vaccine recommendations, early childhood education, utility assistance, transportation funding and alcohol sales.
Below are some of the impactful laws that go into effect today, Wednesday, July 1 in Maryland:
Task Force to Review Local Government Revenue Options
HB 1142 establishes a task force to examine potential changes to how local governments generate revenue to fund operations. As counties and municipalities face rising costs associated with inflation, implementation of the Blueprint for Maryland’s Future education formula, and state budget decisions that have shifted additional expenses to local governments, Maryland county and municipal taxes and fees could eventually rise.
Local governments remain limited in the ways they can raise revenue under a structure that has not changed since 1966. Counties largely rely on state aid, property taxes and local income taxes, while smaller cities, towns and villages also generate revenue through water and sewer service charges. “Maryland’s municipalities need a 21st-century funding model,” said Theresa Kuhns, chief executive officer of the Maryland Municipal League. “Local governments are closest to the people, yet our revenue system hasn’t kept pace with the demands placed on our communities.”
Kevin Kinnally, legislative director for the Maryland Association of Counties, said counties do not want to rely on property tax increases every time additional revenue is needed. “We just want to have some more options on the table to have those conversations with our communities about, hey, what do you want us to do?” Kinnally said. “Because right now it’s just property tax, and that’s it.”
The Maryland Association of Counties and the Maryland Municipal League have repeatedly sought greater authority for local governments to diversify their revenue sources. The task force is expected to examine revenue options used by local governments in other states, which could lead to future legislation authorizing individual Maryland counties to implement similar measures.
The task force is expected to submit a report and possible recommendations by December 1.
The Vax Act
Maryland Health Secretary Meena Seshamani will receive new authority to issue official vaccine recommendations independently of federal agencies and ensure that health insurance plans cover vaccines recommended by the state.
House Bill 637 and its cross-file Senate Bill 385, collectively known as the Vax Act, continue Maryland’s effort to separate state vaccine guidance from recommendations issued by the federal government. The General Assembly began the process last year by adopting legislation that tied Maryland’s vaccine guidance to federal recommendations issued during the Biden administration.
Under the Vax Act, the health secretary may issue recommendations independently of agencies such as the Centers for Disease Control and Prevention and the U.S. Food and Drug Administration. The secretary may still consider federal guidance but will place greater emphasis on recommendations from the American Academy of Pediatrics, the American Academy of Family Physicians and the American College of Obstetricians and Gynecologists.
Recommendations issued by the secretary will be published on the Maryland Department of Health’s website and opened to a 30-day public comment period.
Additional Health Laws
Senate Bill 890 requires the Maryland Insurance Administration to study hospitals’ use of “captive insurance” companies based in the Cayman Islands. The legislation follows allegations from a whistleblower that hospitals are using offshore captive insurance companies to avoid paying taxes on out-of-state insurance premiums. Hospital representatives have described the funds as self-insurance measures. The Maryland Insurance Administration is already reviewing the issue but must now report its findings and recommendations to the General Assembly by January 1, 2027.
House Bill 1523 authorizes misdemeanor charges and fines of up to $5,000 for retailers that sell unauthorized or unregulated consumable products such as kratom and tianeptine.
Baltimore City Archery Hunting Safety Zone
Baltimore City will join other Maryland jurisdictions that have reduced safety zones for archery hunting. House Bill 1324 reduces the required distance between archery hunting activity and homes or other occupied structures from 150 yards to 50 yards.
Del. Sandy Rosenberg introduced the legislation at the request of W. Michel Pierson, a constituent and circuit court judge who reported deer damage to his Mount Washington property from animals traveling through an adjacent wooded area. Baltimore City already uses sharpshooters to help manage deer overpopulation.
Utility Bill Relief Programs
Several provisions of the General Assembly’s broader utility cost relief legislation, Senate Bill 284, also take effect July 1. Most of the legislation took effect immediately after Gov. Wes Moore signed it in May, however there are a few remaining provisions that begin today. These provisions include the creation of a $5 million no-interest loan program for renewable energy projects and energy-efficiency upgrades at nonprofit organizations. The law also establishes a grant program to help low- and moderate-income households install solar panels.
Early Childhood Education
House Bill 849 codifies existing Maryland childcare scholarship program exceptions used by the Maryland State Department of Education. Those exceptions apply to families meeting certain income requirements and families receiving temporary cash assistance or Supplemental Security Income, as well as families with a sibling already enrolled in the program. The program will also receive an additional $20 million to help reduce a waiting list of more than 5,000 families, and the legislation also extends eligibility to children experiencing homelessness.
House Bill 1321, a companion bill to HB 849, establishes a partial scholarship system and creates a sliding fee scale based on family income. Total payments will be capped at 7% of household income.
Local Alcohol Sales
Several new laws modify alcohol sales and licensing rules in individual jurisdictions. In Wicomico County, golf courses may begin selling alcoholic beverages at 7 a.m. rather than 10 a.m. Monday through Sunday. In Howard County, businesses that sell and deliver flowers and food gift baskets may now include beer, wine or liquor in a delivered gift basket. Prince George’s County will no longer limit the number of wine festival licenses that may be issued each year.
Maryland Transportation Authority Debt Limit
House Bill 229 allows the Maryland Transportation Authority’s borrowing limit from $4 billion to $5 billion. The authority oversees Maryland’s toll roads, bridges and tunnels and told lawmakers that the increase is necessary to support capital projects and the replacement of the Francis Scott Key Bridge. The authority also warned that it could otherwise be required to raise tolls to cover those expenses.
This is the second increase in the authority’s debt limit since 2024. Following the collapse of the Key Bridge, the General Assembly raised the limit from $3 billion to $4 billion. While the federal government is expected to cover the full cost of replacing the bridge, Maryland is initially funding the project and seeking federal reimbursement.
