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

(2)    “Community sewerage system” means a publicly or privately owned sewerage system that serves at least two lots.

(3)    “Controlling authority” means a unit of government, a body public and corporate, or an intercounty agency authorized by the State, a county, or a municipal corporation to provide for the management, operation, and maintenance of a community sewerage system, shared facility, or multiuse sewerage system.

(4)    “Shared facility” means a sewerage system that:

(i)    Serves more than one:

1.    Lot and is owned in common by the users;

2.    Condominium unit and is owned in common by the users or by a condominium association;

3.    User and is located on individual lots owned by the users; or

4.    User on one lot and is owned in common by the users;

(ii)    Is located wholly or partly on any of the common elements of a condominium; or

(iii)    Serves a housing cooperative or other multiple ownership cooperative.

(b)    This section may not be construed as requiring a local jurisdiction to:

(1)    Be a controlling authority; or

(2)    Authorize or allow the use of a shared facility or a community sewerage system within the local jurisdiction.

(c)    A shared facility or community sewerage system may be approved only if the system:

(1)    Is managed, operated, and maintained by:

(i)    A controlling authority; or

(ii)    A third party under contract with the controlling authority; and

(2)    Discharges:

(i)    To the surface waters of the State in accordance with a permit issued under § 9–323 of this title;

(ii)    By way of land application under a nutrient management plan required under § 8–803.1 of the Agriculture Article that assures 100% of the nitrogen and phosphorus in the applied effluent will be taken up by vegetation; or

(iii)    By way of an on–site sewerage system.