(a)      (1)      In this section the following words have the meanings indicated.

            (2)      "Development" means any project for the construction of:

                  (i)      Two or more residential dwelling units; or

                  (ii)      Any commercial or industrial structure.

            (3)      (i)      "Subdivision lines" means all water and sewer pipelines or facilities necessary to provide service to a development, including service connections to individual lots or properties in a development.

                  (ii)      "Subdivision lines" does not include pipelines or facilities that constitute "major projects" as defined in § 7-101 of this article.

            (4)      "Health hazard" means an owner-occupied residential property with a failing well or septic system as certified by the State or a local health department.

            (5)      "Authorization for service" means an application by a property owner or developer to the WSSC for water or sewer service that requires the construction of subdivision lines.

            (6)      "Payment security" means security to guarantee payment to the utility contractor, subcontractors, and suppliers that provide labor, materials, or construction equipment for the construction of subdivision lines.

            (7)      "Performance security" means security to guarantee completion of the construction of subdivision lines.

      (b)      Notwithstanding any other provision of law and except as provided in subsections (d) and (e) of this section, all subdivision lines in the sanitary district shall be constructed by the owner or developer of the property at the expense of the owner or developer.

      (c)      (1)      Before constructing subdivision lines, the owner or developer of the property shall enter into an agreement with the WSSC:

                  (i)      Requiring that the subdivision lines be constructed under plans and specifications submitted to and approved by the WSSC;

                  (ii)      Requiring that the owner or developer comply with all applicable laws and requirements for the construction of the subdivision lines;

                  (iii)      Providing for the inspection of the subdivision lines by the WSSC before the lines are placed in service;

                  (iv)      Requiring the property owner or developer to provide:

                        1.      Performance security payable to the WSSC, in an amount acceptable to the WSSC, taking into account potential cost escalation; and

                        2.      Payment security payable to the WSSC for the benefit of the utility contractor, subcontractors, and suppliers providing labor, materials, or construction equipment for the construction of the subdivision lines in an amount equal to the amount of the performance security; and

                  (v)      Providing that before the subdivision lines are placed in service, the property owner or developer shall provide the WSSC with a release of liens, on a form acceptable to the WSSC, signed by the utility contractor and notarized, stating that the utility contractor, and all subcontractors and suppliers, have been paid.

            (2)      An acceptable form of performance security and payment security under this subsection shall be:

                  (i)      A certified check;

                  (ii)      A cash deposit;

                  (iii)      A certificate of deposit;

                  (iv)      An irrevocable letter of credit from a financial institution acceptable to the WSSC and in a form acceptable to the WSSC;

                  (v)      A bond executed by a surety company authorized to do business in the State of Maryland; or

                  (vi)      Another form of security acceptable to the WSSC.

            (3)      (i)      A utility contractor, subcontractor, or supplier providing labor, materials, or equipment for the construction of the subdivision line, that has not been paid, may file a claim against the payment security within 180 days after completion of construction of the subdivision lines (the "claim notice date"), under the procedure required in the payment security. If no procedure is specified in the payment security, the procedure shall be that established by rules and regulations adopted by the WSSC.

                  (ii)      Until all claimants have been paid, or the claim notice date has passed and no claims have been made, the WSSC may not release or reduce the amount of the payment security.

      (d)      Subject to subsection (e) of this section, the provisions of this section may not apply to:

            (1)      Authorizations for service for which:

                  (i)      Application is made with the WSSC on or before June 30, 1999; and

                  (ii)      The WSSC enters into a contract for construction of subdivision lines with notice to proceed issued by the WSSC to its contractor on or before June 30, 2001; or

            (2)      Authorizations for service for the relief of health hazards.

      (e)      Each part of a multipart authorization for service shall be considered a separate authorization under subsection (d) of this section.