Johns Hopkins Institutions



Legislative Hotline

2004 SESSION OF THE
MARYLAND GENERAL ASSEMBLY



Volume 12, Number 3 February 11, 2004


Here are some of the hot issues as the 2004 Legislative Session develops:

JOHNS HOPKINS LEADERSHIP IN ANNAPOLIS


BILLS INTRODUCED
STAFF CONTACT INFORMATION

JOHNS HOPKINS LEADERSHIP IN ANNAPOLIS

This week in Annapolis, Johns Hopkins had two opportunities to brief legislators on the Institutions' successes, challenges and agenda for the 2004 session.

On Wednesday, February 4, 2004, The Johns Hopkins University School of Nursing Dean Martha Hill and Judy Rohde, Director of Nursing for Neurosciences and Psychiatry at The Johns Hopkins Hospital, joined colleagues from the University of Maryland School of Nursing and Hospital to provide a briefing to the Senate Education, Health and Environmental Affairs Committee. Dean Hill and the University of Maryland's Dean Allen informed the committee about their respective schools and the collaborative efforts of the two preeminent nursing schools in the State. They then focused on the nursing shortage, particularly the challenges associated with the shortage of nursing faculty. Ms. Rohde and Kathy McCullough, the University of Maryland's Senior VP for Patient Care Services, addressed the impact of the nursing shortage on hospitals and reported on successful strategies that have been employed at both institutions to recruit and retain nurses.

Additionally, Ron Peterson and Dr. Jim McGill provided the Baltimore City House Delegation a briefing on the Johns Hopkins Institution's legislative priorities. At the beginning of the briefing, Delegate Salima Siler Marriott, Chair of the Delegation, commented about how grateful the Delegation is that Johns Hopkins is located in Baltimore City. The issues discussed included Sellinger Aid for independent institutions, our Capital Budget requests for the shelving facility and pediatric trauma center, continued funding of the Cigarette Restitution Fund, Medicaid fiscal challenges, expanding access for the uninsured, and medical malpractice tort reform.

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BILLS INTRODUCED
Business Opportunities
Economic Development
General Education
General Health Care
Health Care Facilities
Health Care Practitioners
Higher Education
Pharmaceuticals
Public Health
Tobacco Settlement



BILLS INTRODUCED

Business Opportunities

HB74    Consumer Protection - Privacy of Social Security Numbers
This bill prohibits a person from publicly posting or displaying an individual's SS#, printing the SS# on specified cards, transmitting a SS# over the internet unless the connection is secure or the SS# is encrypted, and printing a SS# on any material that is mailed to the individual. These prohibitions would not apply to the use of an individual's SS# by a person for the purpose of meeting a legal requirement that mandates use of a SS#.

Effective Date: January 1, 2005

For more information, please contact: Suchita Lorick


HB185   Computerized Records That Contain Personal Information - Unauthorized Access - Notice
This bill requires that any person, corporation, etc. who owns, licenses or maintains a computerized record of anyone's personal information (name and one of the following: driver's license, SS#, credit card# or bank account #) notify the individual of an unauthorized access to the computerized record. If there is a failure to notify, the person/corp. maintaining the record will be liable to the greater of $500 or actual damages and reasonable attorney's fees.

Effective Date: October 1, 2004

For more information, please contact: Suchita Lorick


HJR2   Health Insurance Portability and Accountability Act of 1996 - Privacy Rule
This joint resolution urges the President, the U.S. Department of Health and Human Services (DHHS), and the Maryland Congressional Delegation to take appropriate measures to cease enforcement of the Privacy Rule established under the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA).

For more information, please contact: Suchita Lorick


SB117   Consumer Protection - Privacy of Social Security Numbers
This bill prohibits a person from publicly posting or displaying an individual's SS#, printing the SS# on specified cards, transmitting a SS# over the internet unless the connection is secure or the SS# is encrypted, and printing a SS# on any material that is mailed to the individual. These prohibitions would not apply to the use of an individual's SS# by a person for the purpose of meeting a legal requirement that mandates use of a SS#.

Effective Date: January 1, 2005 For more information, please contact: Suchita Lorick


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Economic Development

SB214   Maryland Technology Investment Program
The bill creates the Maryland Technology Investment Program, which allows up to $20 million from the State's pension system to be invested in qualified technology and bioscience businesses. The bill defines a qualified company as one that has its headquarters and its principal business operations in the State or the company is a subsidiary of an overseas corporation and the company has agreed to use the investment to support business operations in the State. For start- up companies, the company must employee less than 100 employees with at least 80% of its employees living in the State.

The bill specifies that beginning in FY 2012 and each year thereafter, for the investments made in FY 2005 and each year thereafter, if the internal rate of return is less than 7.75%, the Governor shall make a general fund appropriation to the State Pension system to cover the difference.

Effective Date: June 1, 2004 For more information, please contact: Jim Kaufman


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General Education

HB162   Education - Teacher Incentives
House Bill 162 alters the eligibility requirements for individuals who graduate from college with a 3.5 grade point average to qualify to receive a $4,000 signing bonus. In order to receive the bonus, the recipient must teach in a school that is designates as needing improvement or is a restructured school.

Effective Date: July 1, 2004 For more information, please contact: Bret Schreiber


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General Health Care

HB207   Health Care Decisions Act - Appointment Agents - Prohibition
The bill relates to advance directives. It prohibits an owner, operator or employee or the spouse, parent, child or sibling of an owner, operator or employee of a health care facility from which an individual is receiving health care from serving as that individual's health care agent.

Effective Date:October 1, 2004

For more information, please contact: Sheila Higdon


HB557   Advance Directive Availability Act
The bill specifies the information to be included in the written statement regarding advanced directives that must be provided to all applicants for assistance program, including Medicaid. The information regarding advanced directives is also required to be available in local health departments. The Motor Vehicle Administration must provide advance directive information to driver license applicants and make a notation on the license if an advanced directive has been established. The bill also requires that the Maryland Health Care Commission include the number of advanced directives filed for each plan as part of the HMO report card.

Effective Date: October 1, 2004

For more information, please contact: Jim Kaufman


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Health Care Facilities

SB189   Department of Health and Mental Hygeine - Federally Qualified Health Centers Grant Program
The bill creates the State's Federally Qualified Health Centers (FQHC) Grant Program that was included in the FY 2005 Capital Budget. The program provides grants to counties, municipalities, and non-profits for the conversion of public buildings, acquisition of existing buildings, renovations of facilities, or the purchase of capital equipment for FQHCs. The program requires that any federal or other grant be expended prior to the use of State funds. The State grant may not exceed the lesser of $500,000 or 50% of the costs of the eligible work after all federal grants have been applied, and local funds may be used as required matching funds. The bill also allows the State to recover funds if the property ceases to be a FQHC.

Effective Date:July 1, 2004

For more information, please contact: Jim Kaufman


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Health Care Practitioners

HB310   State Board of Nursing - Rehabilitation Committee Membership and Demonstration Studies
This bill alters the number of members on the State Board of Nursing Rehabilitation Committee from 5 to 6 and requires that one of the members shall be an RN who has a demonstrated expertise in the area of pain management. It also allows the Board to conduct a demonstration study to evaluate a proposed change to regulations regarding nursing practices or the activities of nursing assistants in a practice setting. The study will determine the safety of the proposed practice or activity, and the appropriate education or training requirements for a proposed practice or activity. The Board will approve the demonstration study design and select the testing facilities, and may waive nursing practice requirements during a demonstration study.

Effective Date:October 1, 2004

For more information, please contact: Sheila Higdon


HB433   Prescription Drug Safety Act
This bill requires health practitioners to print or type written prescriptions in a legible manner so that it can be read and understood by the pharmacist filling the prescription. In addition, the bill requires that the following be indicated on the prescription:
-date of issuance, with month stated in textual letters
-name of the authorizing prescriber
-name and strength of the drug with the strength written in metric units
-quantity of the drug in both textual and numerical formats
-directions for using the drug
-reason for prescribing the drug
-for children under age 12, the age and weight of the child.

Prescriptions will be required to be signed on the date that the prescription is issued and may NOT contain the following:
-Latin or apothecary abbreviations
-leading zeros before a decimal point for numbers less than one
-trailing zeros after a decimal point for whole numbers
-abbreviations the name or strength of a drug
Further, the bill stipulates that a practitioner who does not comply with the above may be subject to disciplinary action.

Effective Date: October 1, 2004

For more information, please contact: Sheila Higdon


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Health Insurance

HB270   Insurance Premiums Tax - Health Maintenance
The bill removes the exemption from the 2% premium tax for both HMOs and MCOs.

Effective Date: July 1, 2004

For more information, please contact: Jim Kaufman


HB531   Insurance - Fraud Reporting and Prevention Expansion
The bill requires HMOs to comply with the insurance fraud and reporting prevention laws.

Effective Date: October 1, 2004

For more information, please contact: Jim Kaufman


SB131   Task Force to Compare the Maryland Health Insurance Market to Adjacent States
The bill creates a task force to examine Maryland's health insurance market compared to neighboring states. The 11-member task force, the Director of the Maryland Health Care Commission serving as chair, will examine various issues including access to affordable insurance, cost of insurance, number of mandated benefits, and cost sharing policies.

Effective Date: July 1, 2004 (Sunsets December 31, 2004)

For more information, please contact: Jim Kaufman


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Higher Education

HB96   Higher Education - Public Senior Higher Education Institutions - Tuition Plan
House Bill 96 requires the governing board of each public senior higher education institution to establish a predictable tuition plan. The plan provides that for certain academic years following initial enrollment, the tuition charged to certain students for an academic year may not exceed the amount of tuition that the student was charged at the time the student initially enrolled in the public senior higher education institution.

Effective Date: June 1, 2004

For more information, please contact: Bret Schreiber


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Pharmaceuticals

HB344   Health Insurance - Maintenance Drug Prescriptions - Mail Order Pharmacies
The bill deletes the provision that requires a health plan to impose the same co-payment, deductible, or other conditions on the use of a community pharmacy and mail order pharmacy. The bill also restricts health plans from placing limitations on 90-day maintenance drugs that are purchased through a mail order pharmacy.

Effective Date:October 1, 2004

For more information, please contact: Jim Kaufman


HB397   Pharmacy Benefits Management Act
The bill requires Pharmacy Benefit Managers (PBMs) to register with the Department of Health and Mental Hygiene. The Department may deny, reprimand, suspend, or revoke a registration for various offenses to include fraudulent activities, acting as a PBM without registering, or willfully making false statements.

The bill states that a PBM is a fiduciary and shall act in good faith, perform its duties of providing benefits to its enrollees, and defray reasonable expenses of administering health services. The PBM is required to submit all financial and utilization information to the covered entity, but may designate any information as confidential. A PBM may dispense a lower price generic and therapeutically equivalent drug for a higher priced prescription. The PBM may also substitute a higher priced drug for a lower priced generic drug for medical reasons that benefit the enrollee or covered entity. If a substitution is to occur, the PBM is required to disclose the cost of both drugs and any benefit or payment directly or indirectly accruing to the PBM as a result of the substitution. The PBM is required to obtain written approval from the prescribing health professional prior to the substitution.

The bill also requires that if a PBM derives any payment or benefit for dispensing drugs based on volume, classes, or bands then the financial benefit must be passed on to the covered entity. The PBM must also disclose all financial terms and armaments for remuneration of any kind between the PBM and any prescription drug manufacturer or labeler to include formulary management, educational support, and claims processing.

Effective Date: October 1, 2004

For more information, please contact: Jim Kaufman


HB512   Health Insurance - Pharmaciese - Electronic Reimbursement
The bill requires health plans or pharmacy benefit managers that require retail pharmacists to submit request for payment electronically to allow the pharmacist the option of being reimbursed electronically.

Effective Date: October 1, 2004

For more information, please contact: Jim Kaufman


SB167   Prescription Drugs - Canadian Mail Order
The bill requires DHMH to create a Canadian mail order plan for prescription drugs. The plan is for State employees, Medicaid enrollees, and other members of State prescription programs. The pharmacy benefits manager is required to develop patient safety features that include (1) requiring that a participant must have taken the medication supplied by a retail pharmacy for at least 30 days prior to using the mail order system, (2) requiring participants to submit a brief medical history including allergies, and (3) developing a list of medications that are appropriate for mail order. The bill also requires that the prescription must be provided through "unit of use" packaging to prevent medication errors and the possibility of counterfeit drugs. Finally, the cost of the drug for both the State and enrollee must be less than what would be available through a retail pharmacy and the State shall either reduce or eliminate co-payments as a financial incentive to use mail order.

While the bill does not specify Medicaid FFS or HealthChoice enrollees, Secretary Sabatini noted during a hearing that the Department's intent is to require Medicaid FFS enrollees only to participate in this program.

Effective Date: October 1, 2004

For more information, please contact: Jim Kaufman


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Public Health

HB86   Maryland Office of Minority Health
This bill would establish the Maryland Office of Minority Health in the Executive Department and establish the Minority Health Advisory Commission. This Office would work with public and private organizations to educate about minority health issues, develop programs and initiatives, conduct research, provide grants to Community Based Organizations, make recommendations to DHMH about changes in laws and regulations to facilitate adequate health care to minorities, work with universities and colleges to develop training and courses that address racial and ethnic disparities, work with the Morgan-Hopkins Center for Health Disparities.

The fiscal/policy note estimates that general fund expenditures could increase by $404,800 in FY 2005 and improvements in data collection systems could cost an estimated $500,000.

Effective Date: October 1, 2004

For more information, please contact: Suchita Lorick


HB109   Environment - Cathode Ray Tubes and Computer Products - Collection Systems
After July 1, 2005, a manufacturer may not sell, use, or distribute computer product or cathode ray tube in Maryland unless the manufacturer implements a collection system plan. This plan must be approved by the Maryland Department of the Environment (MDE) and be fully implemented on or before July 1, 2005.Within two years of Department's approval of the collection plan, the manufacturer must submit a progress report to MDE.

Effective Date: July 1, 2004

For more information, please contact: Heather Woods Barthel


HB111   Solid Waste Disposal - Cathode Ray Tubes - Computer Monitors and Television Screens
After December 31, 2005, a person may not dispose of a cathode ray tube (CRT) from a computer monitor or television screen in a sanitary landfill, solid waste transfer station, or incinerator, or at any other location not designated for the management or recycling of cathode ray tubes. After December 31, 2005, a sanitary landfill, solid waste transfer station, or incinerator may not accept any CRT for disposal, transfer for disposal, or incineration. MDE's Office of Recycling shall develop a method for the management and recycling of used CRT by December 31, 2005.

Effective Date: October 1, 2004

For more information, please contact: Heather Woods Barthel


HB260   Clean Indoor Air Act of 2004
This bill prohibits smoking in indoor areas open to the public, indoor places of employment, government owned or operated means of mass transport. There are exceptions for private residences and 25% of hotel/motel rooms. The bill also requires the posting of no smoking signs and penalties for a violation.

This bill resembles the one introduced last year.

Effective Date: October 1, 2004

For more information, please contact: Suchita Lorick


HB309   State Advisory Council on Obesity in Youth
This bill would establish a State Advisory Council to perform a comprehensive evaluation of obesity in youth. The Governor would appoint 21 of the 28 Council members. The Council would consist of obesity experts, representatives from the industry, schools, and the community. DHMH would be required to provide staff support for the Council. The Council would issue a report every two years.

Effective Date: June 1, 2004

For more information, please contact: Suchita Lorick


SB363   Tobacco Tax - Products Other Than Cigarettes - Tax Rate
This bill increases the tax on tobacco products other than cigarettes from 15% to 45%. The revenues generated from these taxes are not designated for any specific use.

Effective Date: July 1, 2004

For more information, please contact: Suchita Lorick


SB378   Tobacco Tax - Rate
This bill increases the tobacco tax rate for cigarettes from $1.00 to $1.50 per pack of 20 cigarettes. The revenues generated from these taxes are not designated for any specific use.

Effective Date: July 1, 2004

For more information, please contact: Suchita Lorick


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Tobacco Settlement

HB357   Cigarette Restitution Fund - Required Appropriations
The bill precludes counting appropriations from the Cigarette Restitution Fund used for the Maryland Medical Assistance Program from being counted to satisfy the requirement that 50% of the funds be used for programs such as the tobacco cessation, cancer prevention, education, screening and treatment, cancer research, substance abuse treatment and prevention, and other specified programs.

Effective Date: June 30, 2004

For more information, please contact: Sheila Higdon


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STAFF CONTACT INFORMATION
Please contact Government Relations if you have concerns or would like additional information. Your input assists us greatly in evaluating and formulating the position of Johns Hopkins on all legislation.

Legislative Session Office
47 State Circle, Suite 203
Annapolis, MD 21401
410-269-0057
fax 410-269-1574


Sheila Higdon shigdon@jhmi.edu
Jim Kaufman jkaufma@jhmi.edu
Bret Schreiber bschreiber@jhu.edu
Heather Woods Barthel hbarthe1@jhmi.edu
Suchita Lorick slorick@jhsph.edu
Mickey Geisler mgeisler@jhu.edu

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Acronyms


Legislative Hotline is a collaborative service of The Johns Hopkins University and Johns Hopkins Medicine offices of Government Relations.

© 2004 The Johns Hopkins University. Baltimore, Maryland.
Office of Government, Community and Public Affairs.
Last updated 04feb11