2008 Legislative Summary
MARYLAND NONPROFITS INITIATIVES
Study of State Procurement Problems
Legislation was adopted establishing a task force to study problems with state procurement of health and social services. House Bill 527 and Senate Bill 686 create a Task Force with participation by state agencies, providers, and two academics, to review problems including late payment, the Request For proposal (RFP) process, lack of standardization of documents and documentation, etc. The Task Force must submit its final report by December 2009.
Maryland-Not-For Profit Development Center
House Bill 1214 creates a new program within the Department of Business and Economic Development to provide services for the nonprofit community that are similar to the Small Business Development Center network that serves small for-profit businesses around the state.
Study Of The State's Expenditure Needs - FAILED
House Bill 1190 and Senate Bill 691 would have established a study of state program commitments, program efficiencies, and the need for services under existing programs, in order to determine what level of state revenues would be necessary to adequately serve those needs.
Disclosing Changes in State Budget Allocations - FAILED
House Bill 190 and Senate Bill 692 would have required the Executive Budget Books to include a listing detailing programs where either funding, or the level of services, to be provided in the coming year would be either 5% or $50,000 less than in the approved budget for the current year.
STATE GOVERNMENT
Base Relocation and Closing Act - BRAC
The Administration’s “BRAC Community Enhancement Act” Senate Bill 206 authorizes BRAC Revitalization and Incentive Zones and establishes eligibility criteria, the factors the State is to consider when approving BRAC Zones, and the procedures that local subdivisions must follow to apply for the zones. The Act authorizes tax-related financial incentives for Zones and payment in lieu of taxes for facilities on federal land.
Maryland Funding Accountability and Transparency Act of 2008
House Bill 358 requires the Department of Budget and Management (DBM) to develop a free, public, searchable web site by January 1, 2009, that includes detailed information on State payments of $25,000 or more. The bill also requires, by June 30, 2010, the completion of a study of the feasibility and cost of expanding the web site to search by different elements and include information on all State awards greater than $25,000.
Consolidation of Workforce Development Functions
Senate Bill 203 consolidates adult education, literacy services, and correctional institutions’ education programs in the Department of Labor, Licensing, and Regulation and transfers the programs and associated resources on July 1, 2009. The bill also establishes a Workforce and Adult Education Transition Council to make recommendations
Codification of the Governor’s Office of Community Initiatives
House Bill 782 codifies the Governor’s Office of Community Initiatives (previously established by Executive Order) and transfers to the Office the Commission on Indian Affairs (from DHR) and the Commission on African American History and Culture (from MDP). The Bill also places the Governor’s Office on Service and Volunteerism under the Office.
Reorganization Within the Department of Human Resources
The Community Services Administration of DHR has been eliminated by House Bill 1443. The Office of Home Energy Programs, the Energy Assistance Program, and the Office of New Americans are being transferred to the Family Investment Administration. The Office of Adult Services is now in the Social Services Administration. The Office of Victim Assistance, the Office of Transitional Services, and the Office of Community Initiatives are now in a new Office of Grants Management. The Maryland Legal Services Program is transferred to the Office of the Secretary. The Maryland Emergency Food Program will be managed by the Department, and the Commission on Responsible Fatherhood is being located in the Department for budget and administrative purposes.
New State Holiday, Symbols, and Commemorative Days
Under House Bill 83, the Friday after Thanksgiving Day will be named American Indian Heritage Day in Maryland and will become a legal State holiday. Currently the Friday after Thanksgiving Day is a legal paid holiday for State employees.
Divestiture from Iran and Sudan
Senate Bill 214, requires the Board of Trustees of the State Retirement and Pension System to notify companies that are doing business in Iran or Sudan that the board will divest its investment holdings with the company unless the company releases a plan to stop doing business in Iran or Sudan within one year.
Immigration Commission
House Bill 1602 establishes a Commission to Study the Impact of Immigrants in Maryland. The Commission, led by a research team staffed by the University of Maryland, College Park, is to study the immigrant population’s demographic and socioeconomic profiles, as well as the economic and fiscal impact of documented and undocumented immigrants on the State.
NONPROFIT EMPLOYERS
Flexible Leave
House Bill 40 requires a private-sector employer, with 15 or more employees, who provides a paid leave benefit to an employee to allow the employee to use the leave to care for the illness of the employee’s immediate family.
Payment of Accrued Leave Senate Bill 797 restores legal effect to established employment policies for accrual and payout of employee leave when employees leave, or are terminated. A recent Court of Special Appeals ruling, in an unreported case, and subsequent rule by the Department of Labor, Licensing and Regulation (DLLR) would institutionalize the court ruling, requiring employers to treat all leave as accrued salary on termination. Without the bill numerous organizations could have faced financial stress, or bankruptcy, with departing employees being able to claim payment for much more accrued leave than the organization had provided for under its employment policies. (Supported by MD Nonprofits)
NATURAL RESOURCES AND ENVIRONMENT
Chesapeake Bay and Critical Areas
Senate Bill 213 and House Bill 369 rename the Chesapeake Bay 2010 Trust Fund to be the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund and direct money from the fund to a newly created Chesapeake and Atlantic Coastal Bays Nonpoint Source Fund to be used to provide financial assistance for the implementation of stormwater management practices and stream and wetland restoration. The bills codify the BayStat Program created by executive order in 2007, and establish a BayStat Program Scientific Advisory Panel to provide annual recommendations on the use of funds for the following fiscal year. (see Budget Actions)
House Bill 1253 increases the authority of the Critical Area Commission and extends the protective buffer from 100 feet to 200 feet.
Senate Bill 831 and House Bill 581 allows new community sewerage systems that are replacing individual septic systems to qualify for grants or loans from the Bay Restoration Fund.
House Bill 973 requires the use of nonstructural shoreline stabilization methods in tidal wetlands except in areas where such measures are not feasible.
Senate Bill 710 delays by six months – from January 1, 2010, to July 1, 2010 – the effective date of the prohibition, which was enacted in 2007, on using, selling, manufacturing, or distributing detergent for use in a household dishwashing machine that contains more than 0.5% phosphorus by weight.
Energy Efficiency and Conservation
House Bill 374, the EmPOWER Maryland Energy Efficiency Act, sets a goal to reduce per capita electricity consumption and per capita peak demand by 15% by the end of 2015.
Senate Bill 268 and House Bill 368 create the Administration’s Maryland Strategic Energy Investment Program and Fund to invest in the promotion, development, and implementation of energy efficiency and conservation programs; renewable and clean energy resources; and climate change research and other related programs; as well as provide targeted programs to reduce electricity consumption by low-income
Senate Bill 885 and House Bill 1301 consolidate the existing Community Energy Loan Program (CELP) and Energy Efficiency and Economic Development Loan Program (EEEDLP) into the Jane E. Lawton Loan Program to provide financial assistance in the form of low interest loans to nonprofit organizations, local jurisdictions, and eligible businesses for energy conservation projects.
HEALTH CARE AND HEALTH INSURANCE ISSUES
Children’s Health Insurance
House Bill 1391, the Kids First Act, requires taxpayers, beginning with tax year 2008, to indicate on their income tax return whether each dependent child for whom an exemption is claimed has health care coverage. The Comptroller must send taxpayers with a dependent child and specified income notice that the dependent child may be eligible for Medicaid or the Maryland Children’s Health Program (MCHP) and, in specified instances, Medicaid and MCHP applications, with instructions. This legislation sunsets June 30, 2011.
House Bill 115, concerning Medical Assistance Programs and MCHP, requires the Department of Health and Mental Hygiene to collaborate with the Office of the Comptroller and the Office of the State Treasurer to develop one-sentence statements advising that individuals who cannot afford health insurance may be eligible to enroll in a Medical Assistance (Medicaid) program or MCHP.
Medicare Part D Coverage Gap
Senate Bill 906 and House Bill 1492 create a subsidy of $4 million annually for the Medicare Part D coverage gap and provide a sunset extension for the Senior Prescription Drug Assistance Program (SPDAP) to December 31, 2009.
Individuals with Disabilities and Parents of Minors with Disabilities
Senate Bill 577 and House Bill 767 extend the rights and privileges afforded to blind, visually impaired, deaf, and hard of hearing individuals to all individuals with disabilities as defined by federal law, as well as to the parents of a minor child with a disability. Thus, the bills grant to all individuals with disabilities and the parents of a minor child with a disability the same rights of access to public places, accommodations, and conveyances as well as housing accommodations that are currently afforded to blind, visually impaired, deaf, and hard of hearing individuals. In addition, physical modifications of places or vehicles are not required in order to admit individuals who are authorized to use a service animal. The current law granting rights and privileges to individuals with specified disabilities excludes individuals with mental impairments, such as epilepsy.
Veterans
Senate Bill 210 and House Bill 372 require DHMH to establish behavioral health services coordination for veterans for up to three years, to link veterans to appropriate Veterans Administration services, and to provide ‘gap’ services in the event of delays in VA service availability. (see Budget Actions)
DOMESTIC PARTNERS
Domestic Partners – Medical Decisions
Senate Bill 566 establishes certain health care facility visitation and medical decision-making for domestic partners. This bill defines domestic partnerships and confers rights regarding health care facility visitation and medical decisions involving medical emergencies, health care decisions, tissue and organ donation, and final disposition of a body, provided that the domestic partners have provided specified documents, including a signed affidavit that indicates that they have established a domestic partnership.
Recordation and Transfer Taxes- Exemptions- Domestic Partners
As amended, Senate Bill 597 exempts from recordation tax and State and county transfer taxes the transfers of residential property between domestic partners or former domestic partners. The measure, with an effective date of July 1, 2008, requires the submission of specified documents to qualify for the exemptions and has no affect on the Family Law Article of the Annotated Code of Maryland.
MORTGAGE & FORECLOSURE REFORMS
Foreclosure and Mortgage Lending Practices
Senate Bill 216 and House Bill 365 (Ch. 1 and Ch. 2) change the laws governing recordation and foreclosure of mortgages and deeds of trust. The bills alter the requirements for recordation, notice, service of process, court filings, and cure of defaults. Provisions include lengthening the foreclosure process and providing homeowners with more time and notice before a foreclosure sale and codifying the right to cure, which allows homeowners to stop foreclosure by paying what is owed up until one business day before the sale.
Senate Bill 217 and House Bill 360 (Ch. 3 and Ch. 4) create a comprehensive mortgage fraud statute with criminal penalties and authorize the Attorney General, a State’s Attorney, and the Commissioner of Financial Regulation to enforce the statute. The new law also authorizes a private right of action for violations of the statute. Provisions include imposition of fines and imprisonment for violators and authorization for court-ordered restitution and forfeiture and enhanced penalties for cases involving vulnerable adults.
Senate Bill 218 and House Bill 361 (Ch. 5 and Ch. 6) alter several provisions of law including prohibiting foreclosure rescue transactions, broadening the scope of the current law, and expanding the enforcement powers of the Commissioner of Financial Regulation. The changes are aimed at providing additional consumer protection for people who are trying to sell their homes because they are in default.
Senate Bill 270 and House Bill 363 (Ch. 7 and Ch. 8) make several changes in the law governing mortgage lending, including prohibiting prepayment penalties for mortgages, requiring lenders to verify a borrower’s ability to repay, authorizing the Commissioner of Financial Regulation to set licensing, examination and investigation fees, and expanding the licensing requirements for mortgage lenders and mortgage originators.
CARE OF CHILDREN
Limiting Approval of New Group Homes
Senate Bill 782 requires a statement of need for developing, operating, establishing, relocating, or expanding a residential child care program. Before an application is submitted or a license is granted, the Department of Human Resources or the Department of Juvenile Services must issue a statement of need to a program in a county, considering the specialized mental, physical, and behavioral health and developmental needs of children in the region.
Children’s Products – Lead Content
House Bill 62 prohibits a person from manufacturing, selling, offering for sale, importing, or distributing a lead-containing children’s product. The prohibition includes accessories and jewelry, clothing, lunch boxes, toys, and other such items. A manufacturer of a children’s product is required to test a product for lead by using an independent, accredited third-party testing entity.
DEATH PENALTY
New Study Commission
The Maryland Commission on Capital Punishment (“MCCP”) is established by Senate Bill 614 and House Bill 1111. The 22-member Commission is to study all aspects of capital punishment as administered in the state, and make a report to the General Assembly by December 15, 2008.
BUSINESS REGULATION
Registration of Tax Preparers
Senate Bill 817 establishes an eight member State Board of Individual Tax Preparers to register qualified individuals to provide tax preparation services. The bill sets minimum requirements for registration, and for relations with clients. Registration must be obtained by June 1, 2010. The bill also provides certain exemptions based on other licensure or experience.
Debt Management Services
Senate Bill 646 and House Bill 947 repeal Maryland’s requirement that a licensed debt management services provider be a nonprofit entity. The bill also establishes certain consumer protection standards that providers must meet, and annual reporting requirements to the Commissioner of Financial Regulation.
“Halal” Food Products
House Bill 1079 prohibits the false representation of food as ‘halal’ and also sets disclosure standards for establishments that serve or provide ‘halal’ products.
Budget and Executive Actions
Rosewood Center
In January the Governor announced plans to close the Rosewood Center for developmentally disabled individuals. The Developmental Disabilities Administration has prepared a plan for the transitioning of non-court committed individuals (app. 135) to community placements, and identifying alternate facilities for app. 30 court-committed individuals.
Dental Care
The Budget Bill contains $16.1 million to fund recommendations for improved public and Medicaid-funded dental service. These include $14 million (federal and state funds) to increase Medicaid provider reimbursement rates for dental care; $1.4 million for DHMH’s Office of Oral Health to improve services through public health agencies; and $700,000 to the Office of Oral health for school-based dental services.
Veterans Care
The budget contains $2.8 million to improve access to behavioral health services for veterans.
Chesapeake and Atlantic Coastal Bays 2010 Trust Fund
The budget contains $25 million for the trust fund, renamed under Senate Bill 213 and House Bill 369.
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LINKS
Maryland General Assembly website
Maryland Budget and Tax Policy Institute
Maryland Nonprofits Policy Action Center
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For information
contact Henry Bogdan, Public Policy Director, at 410-727-6367 ext. 18.
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