Johns Hopkins Institutions

Legislative Hotline

2004 SESSION OF THE
MARYLAND GENERAL ASSEMBLY

Volume 12, Number 6

March 3, 2004

Here are some of the hot issues as the 2004 Legislative Session develops:
MEDICAID EXPANSION AND THE UNINSURED
MEDICAL MALPRACTICE TORT REFORM
HIGHER EDUCATION
SLOT MACHINE
BALTIMORE CITY SCHOOLS CRISIS
THE FLUSH TAX

BILLS INTRODUCED
STAFF CONTACT INFORMATION

Medicaid Expansion and the Uninsured
This week the House and Senate began their hearings on a number of bills aimed at reducing the number of uninsured. The proposals include the Health Care for All bills (SB 737/HB1008 - Public-Private Partnership for Health Coverage for All Marylanders), the bill to expand access to care using community health centers (SB715/HB1271 - Access to Health Care and Community Health Care Safety Net Act of 2004), and the administration's proposal to create a limited benefits health plan (HB 1457 - Health Reform Act of 2004). During the Health and Government Operations hearing on the FQHC proposal, every group including the insurance lobby testified in support of the bill with various amendments to include adding specialty care to the Medicaid expansion, altering the methodology for the capital grants to be awarded for community health centers, to deleting the HMO/MCO premium tax. Chairman Hurson noted that the bill includes multiple provisions and was designed as a starting point for discussion. Both the House and Senate chairs noted that they will be holding weekly work sessions on this issue to move a comprehensive proposal forward.
It should be noted that during the Senate Finance hearing on the Health Care for All proposal, Hal Cohn testified that the reason the bill includes a two-tier payroll tax is because Johns Hopkins does not offer health benefits in excess of 8%, thus requiring the lower level of 6% for non-profits. Both the Health Care for All bill and the bill expanding access to care using community health centers levies a payroll tax of 8% on for-profit businesses with greater than 10,000 employees and a 6% payroll tax for non-profit businesses with greater than 10,000 employees. However, the business can claim a credit against the tax for the employer's contribution in offering health benefits. During a briefing earlier in the week, Health Care for All testified that five businesses currently employee more than 10,000 workers, Johns Hopkins University, Johns Hopkins Health System, MedStar Health, Giant Food, and Wal-Mart.
[ Go to Top]
Medical Malpractice Tort Reform
Presently there are 12 bills that attempt to address medical malpractice tort reform. Four of the bills were heard on Wednesday, February 25th before the Senate Finance Committee. These four bills would have little or no effect on meaningful reform. Four more will be heard next week including the Governor's proposal, which Johns Hopkins is supporting through MHA and the Alliance to Preserve Access. Rick Kidwell will testify on a panel in support of the Governor's bills.
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Higher Education
Two higher education bills were discussed this week in Annapolis. The first, Senate Bill 112 creates a funding formula for the University System of Maryland, Morgan State University, and St. Mary's College of Maryland. The bill mandates annual increases for the institutions of at least 5% per full-time equivalent (FTE) resident student beginning in fiscal 2007. USM, MSU, and SMCM would also receive additional fiscal 2005 funding if an enacted supplementary appropriation bill or a supplemental budget submitted by the Governor includes the funding. The bill also reduces tuition rates for the 2004-2005 academic year and limits future tuition increases to 4% annually. However, there is no funding mechanism in the legislation, nor is there money in the State's budget to cover these costs.
This week Senator Hogan introduced Senate Joint Resolution 9, "Higher Education - Commission to Study Maryland's Commitment to and Funding of Higher Education." The resolution will create a commission to consider methods to provide a combined level of State support and tuition revenue to enable Maryland's public institutions of higher education to meet the goals of the Maryland Charter for Higher Education and compete with peer institutions across the country. The commission will also consider other issues related to State funding and tuition revenue for public institutions of higher education. Although the bill does not reference private higher education, Senator Hogan has mentioned that the study is intended to encompass all of higher education --including private and community colleges. The Commission will be composed of the representatives from all of higher education. The President of Johns Hopkins University is included in the bill as a member of the Commission.
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Slot Machines
Senate Bill 197, Governor Ehrlich's slot machines bill passed the Senate on Friday by a vote of 27 to 18. The bill is headed to the House of Delegates where Speaker Busch has said the House will rewrite the legislation. The gambling bill as passed by the Senate would legalize 9,000 slots at three racetracks and 6,500 at three off-track locations, generating an estimated $829 million a year for public schools. Speaker Busch has stated the bill would be amended to require state-owned facilities with the operations contracted out to private vendors, or private companies would be asked to bid on slots licenses with no preferential treatment given to racetracks.
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Baltimore City Schools Crisis
The Governor, Mayor and City Delegation tentatively agreed on a plan that would turn the school system over to an appointed panel for at least 16 months. The panel would have the authority to cut costs to resolve the system's deficit. Details still need to be worked out on the amount of money the state will offer the City Schools. Legislation will be draft in order to implement these changes. Many details and differences still exist, mainly what will the size of the board be, who appoints the members, what will the boards power be, when will the loan be repaid, how long will the new board or authority last, will there be a city residency requirement, and should there be a separate advisory board on academics comprised of city residents.
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The Flush Tax
Next week HB 555 - Water Pollution - The Chesapeake Bay Watershed Restoration Fund bill, otherwise known as "The Flush Tax," will be heard. The bill levies a tax against water users in the state in order to raise money to upgrade wastewater treatment plants. The bill is not specific as to how business entities will be taxed. If we are taxed per bill, all of Johns Hopkins' entities receive separate water bills and the institution would pay in excess of $500,000. Many businesses in the state are seeking clarification, which will hopefully be provided before the bill is passed.

BILLS INTRODUCED
Business Operations
General Education
General Health Care
Higher Education
Health Care Facilities
Health Care Practitioners
Health Insurance
Long Term Care/Nursing Homes
Medicaid
Mental Health
Public Health
Miscellaneous

BILLS INTRODUCED
Business Opportunities
HB 1   Public School Construction Assistance Act of 2004
House Bill 1 imposes recordation and transfer taxes on the transfer of real property, with a value of $500,000 or more, when the transfer is achieved through the sale of a "controlling interest" in a corporation, partnership, limited liability company, limited liability partnership, or other form of unincorporated business. Controlling interest is defined as more than 80% of the total value of the stock or the interest in capital and profits.
The bill also requires specified amounts of State and local recordation and transfer taxes to be dedicated to school construction for Fiscal Years 2005 through 2008.
Effective Date: January 1, 2005
For more Information, please contact: Bret Schreiber
HB 679  Maryland Heritage Structure Rehabilitation Program
This bill creates the Maryland Heritage Structure Rehabilitation Program that would receive an annual budget appropriation in the State budget. The structures eligible for the program would be similar to those that are currently eligible for tax credits under the Maryland Heritage Structure Rehabilitation Tax Credit, which is scheduled to sunset on June 30, 2004. The amount of the grant is equal to 20% of certified rehabilitation expenditures, not to exceed $3 million for commercial projects and $25,000 for noncommercial projects. The bill is slated to replace the Maryland Heritage Rehabilitation Tax Credit and would allow Legislative leaders to accurately budget for the needs of the Program.
Effective Date: October 1, 2004
For more Information, please contact: Bret Schreiber
HB 697  Transportation - Safety Standards for the Transportation of Children
This bill requires a person who transports nine or more children younger than 18 to or from school, a school-related activity, a child care center, or a civic, educational, athletic, social, recreational, or faith-based activity, including day or summer camp, to use a vehicle that conforms to federal school-bus safety standards under 49 U.S.C. § 30125(b) and applicable federal regulations. Nonconforming vehicles can be used by private schools until October 1, 2009.
Effective Date: October 1, 2004
For more Information, please contact: Bret Schreiber
[ Go to Bills Introduced]
General Education
HB 1393  Education - Bridge to Excellence in Public Schools Act - Use of Funds
This bill requires a county board of education for Fiscal Year 2005 and each fiscal year following to expend funds that it receives under the Bridge to Excellence in Education Act only for the purposes of the Bridge to Excellence requirements and only for that specific fiscal year. The bill will not allow a county board of education to use the funds to pay off debt or a deficit from a prior fiscal year.
Effective Date: July 1, 2004
For more Information, please contact: Bret Schreiber
HB 552  Education - Bridge to Excellence in Public Schools Act - Extension of Phase-In Period
Senate Bill 552 extends the phase-in period to reach the targeted amount of additional State funding for public education under the Bridge to Excellence in Public Schools Act. The bill also alters the amounts and extends for an additional four years, the amount of grants to K-12 education under the Bridge to Excellence Act.
Effective Date: June 1, 2004
For more Information, please contact: Bret Schreiber
SB 650   Public Schools - Improvement of Education Act of 2004
Senate Bill 650 allows a County Board of Education to use a bonus, stipend, or any other salary enhancement that it considers necessary to recruit or retain a teacher who teaches in a critical shortage area. The enhancement cannot exceed $500.
Effective Date: June 1, 2004
For more Information, please contact: Bret Schreiber
[ Go to Bills Introduced]
General Health Care
HB 1362  Tax Credit for Cost of Automated External Defibrillator
The bill creates a tax credit for businesses that purchase Automatic External Defibrillators. The credit goes up to 25% of the cost and may not exceed $500.
Effective Date: July 1, 2004
For more Information, please contact: Jim Kaufman
[ Go to Bills Introduced]
Higher Education
HB 1275  Income Tax Credit for Graduate Level Education - Nonpublic School Teachers
This bill allows teachers in nonpublic schools approved by or registered with the State to claim a credit against the State income tax for tuition paid by the teacher for graduate level education required to maintain certification. The maximum credit allowable is $750 of tuition paid by the teacher for the graduate level courses.
Effective Date: July 1, 2004
For more Information, please contact: Bret Schreiber
HB 1307  Higher Education - William Donald Schaefer Scholarship Program
House Bill 1307 establishes the William Donald Schaefer Scholarship Program. The bill also sets up the William Donald Schaefer Scholarship Advisory Council within the State Higher Education Commission. The bill authorizes the Commission to make scholarship awards to those students who wish to pursue a career in the State of Maryland in public service.
Effective Date: October 1, 2004
For more Information, please contact: Bret Schreiber
HB 1438  Higher Education - Edward T. Conroy Memorial Scholarship Program - Eligibility
House Bill 1438 alters the eligibility requirements for the Edward T. Conroy Memorial Scholarship Program by including students attending a State high school at the time of application or persons who graduated from a State high school within 3 months of application.
Effective: July 1, 2004
For more Information, please contact: Bret Schreiber
SB 882   Higher Education - Maryland Teacher Scholarships - Funding
Senate Bill 882 requires the Governor to provide funding in the State Higher Education Commission's annual budget for 650 new State Teacher Scholarships and 2,200 renewed State Teacher Scholarships. The bill also requires any excess funding for State Teacher Scholarships be distributed to the State HOPE Scholarship Program.
Effective Date: July 1, 2004
For more Information, please contact: Bret Schreiber
SJR 9  Higher Education - Commission to Study Maryland's Commitment to and Funding of Higher Education
Senate Joint Resolution 9 will create a commission to consider methods to provide a combined level of State support and tuition revenue to enable Maryland's public institutions of higher education to meet the goals of the Maryland Charter for Higher Education as well as compete with peer institutions across the country. The Commission will also consider other issues related to State funding and tuition revenue for public institutions of higher education.
The Commission will be composed of the following members:

Four members of the State Senate
Four member of the House of Delegates
The Secretary of Higher Education
The President of the University Maryland at College Park
The President of the University of Maryland University College
The President of Morgan State University
THE PRESIDENT OF JOHNS HOPKINS UNIVERSITY
One member of the Board of Regents of the USM
Two members of the Board of Visitors of the constituent institutions of the USM
One representative of the Maryland Association of Community Colleges
Four members of the public appointed by the Governor
A report is required by December 1, 2005.
For more Information, please contact: Bret Schreiber
[ Go to Bills Introduced]
Health Care Facilities
HB 886  Health - Freestanding Facility Utilizing Major Medical Equipment - Repeal of Licensing Requirements
The bill repeals the provision that a free-standing ambulatory care facility utilizing major medical equipment must obtain a license from the Department of Health and Mental Hygiene. The definition of major medical equipment includes: cardiac cathereterization equipment, a CT scanner, a lithotripter, radiation therapy equipment, or an MRI.
Effective Date: October 1, 2004
For more Information, please contact: Jim Kaufman
HB 1156  Abortion - The Women's Health Protection Act
This bill adds a facility that provides abortion services, not including a hospital, to the definition of freestanding ambulatory care facility. It provides that a physician may perform an abortion without notice to a parent or guardian of a minor if, in the professional judgment of the physician, the minor is mature and capable of independently evaluating the information given to her and the minor is mature and capable of giving informed consent to a voluntary abortion. It requires a qualified individual to screen a pregnant woman before an abortion may be provided by evaluating the presence of risk factors such as a family history of breast cancer, prior abortion, and moral or religious convictions against abortion. It also requires the Department of Health and Mental Hygiene to maintain an Abortion Information Depository.
Effective Date: October 1, 2004
For more Information, please contact: Heather Barthel
HB 1308  Electricity Regulation - Renewable Energy Portfolio Standard and Credit Trading - Maryland Renewable Energy Fund
Requires the Public Services Commission to establish renewable energy portfolio standards for retail electricity sales during specified years; requires the standards to be met by accumulating renewable energy credits; provides for the eligibility of energy from specified sources; provides limited additional credit for energy from specified sources; authorizes specified electricity suppliers to demonstrate compliance in specified manners.
Effective Date: July 1, 2004
For more Information, please contact: Heather Barthel
HB 1313  Distressed Hospital Reform Act of 2004
The bill has four components that provide funds for "distressed" hospitals; they include the following:

Allows the Prince George's Hospital Center to apply for a Statewide Academic Health Center Public Health Grant, through a funding source that has been designated for Johns Hopkins and the University of Maryland to implement the Baltimore City Cigarette Restitution Fund Public Health Grant.

Establishes the Disproportionate Share Hospital Payment Program, administered through the Department of Health, and requires the Governor to provide sufficient funds in the Department's budget to cover the costs of the Program, whose purpose is to subsidize the costs of physician care provided in hospitals in underserved areas to uninsured patients.

Authorizes money in the Maryland Emergency Medical System Operations Fund to be used for the Prince George's Hospital Regional Trauma Center.

Establishes the Distressed Healthcare Facility Grant Program in the Department of Health. The Program's purpose is to provide grants to healthcare facilities with a significant uncompensated care burden. Eligible hospitals includes those that have provided in excess of $20 million in uncompensated care, or 20% of the facility's total revenue in the previous year. The Program will provide a $5 million annual grant for those qualifying institutions, to support ongoing operating expenses associated with the health care mission of the facility. The Governor will be required to provide sufficient funds in the budget to cover the costs of the Program.
Effective Date: July 1, 2004
For more Information, please contact: Sheila Higdon
[ Go to Bills Introduced]
Health Care Practitioners
HB 802   Unborn Victims of Violence Act
This bill would define an "unborn child" as an unborn human being who is conceived but not yet completely born. Laws relating to murder, manslaughter, homicide, assault, reckless endangerment, life threatening injury by motor vehicle or vessel and poisoning apply to the above definition of an unborn child. This would not apply to acts committed by the mother during a legal abortion or death of an unborn child that occurs during usual and customary standards of medical practice during diagnostic testing or therapeutic treatment.
Effective Date: October 1, 2004
For more Information, please contact: Suchita Lorick
SB 351  Public Health - Abortion - Parental Notice
This bill would change physician requirements of parental notification for unmarried minors. The physician may not perform an abortion unless an actual notice was provided to the parent (definition includes legal guardian) or 48 hours have passed since providing notice the parent. The physician may perform an abortion without a notice if: they have received a notarized written statement within the last 30 days from the parent documenting their awareness; the physician certifies that a medical emergency exists; the minor petitions the court to waive notification. The court may waive the notification if the court finds a pattern of parental abuse or finds the minor to be sufficiently mature to decide whether to have an abortion. Violation of this provision would subject a person to a fine up to $1000.
Effective Date: October 1, 2004
For more Information, please contact: Suchita Lorick
[ Go to Bills Introduced]
Health Insurance
HB 967   Income Tax - Exemptions and Deductions - Health Care Coverage Required
The bill prohibits a person with federal adjusted gross income exceeding 300% of the federal poverty level from taking the personal exemption on the Maryland Income Tax unless the person had health care coverage for at least 6 months of the taxable year.
Effective Date: July 1, 2004 (for tax year beginning January 1, 2005)
For more Information, please contact: Jim Kaufman
HB 1395  Health Insurance - Participation of Providers on Multiple Provider Panels
The bill modifies the provision that a health insurance carrier may not require a provider's participation on one panel as a condition of participation on another provider panel except in the case of the carrier serving as a Medicaid Managed Care Organization or the provider panel is only comprised of one specialty such as mental health or chiropractic services.
If the provider terminates participation on the panel, the provider is required to notify the carrier at least 90 days prior to termination and for a period of at least 90 days after the notice of termination continue to provide health care services to enrollees.
Effective Date: October 1, 2004
For more Information, please contact: Jim Kaufman
HB 1457   Health Reform Act of 2004
The bill, which is the Administration's health care expansion proposal, authorizes the Maryland Health Care Commission to develop a Limited Benefit Plan which the actuarial value may not exceed 70% of the value of the Comprehensive Standard Health Benefit Plan. The bill requires that a carrier must offer the limited benefits plan to small employers that have not been covered for the previous 12 months and the average annual wage for the employer's group does not exceed 75% of the average annual wage in the State. In addition, the carrier must offer coverage for all eligible employees and their dependents. The carrier may not offer the Comprehensive Standard Health Benefit Plan for any member of the employer's group.
Effective Date: October 1, 2004
For more Information, please contact: Jim Kaufman
[ Go to Bills Introduced]
Long Term Care/Nursing Homes
HB 1386  Health - Written Statement of Acceptance of Health Insurance
The bill requires each comprehensive care facility or extended care facility to provide a written statement verifying that the facility and attending physician accept the individual's health insurance.
Effective Date: October 1, 2004
For more Information, please contact: Jim Kaufman
[ Go to Bills Introduced]
Medicaid
HB 1024  Children's Health Insurance Outreach Program
The bill creates the CHIP Outreach Program designed to identify children who are eligible for CHIP, enroll them in the program. For children who do not qualify for CHIP, the Outreach Program would identify methods to obtain health insurance for the uninsured child. The Department must develop a health insurance form for the State Department of Education to include with the school lunch application.
Effective Date: October 1, 2004
For more Information, please contact: Jim Kaufman
[ Go to Bills Introduced]
Mental Health
HB 943  Maryland Medical Assistance Program - Carve-Out of Specialty Mental Health Services
Currently, the HealthChoice program does not offer mental health services. These services are provided on a fee-for-service basis administered by a separate administrative service organization. This bill prohibits the carving in of these mental health services into HealthChoice, which, in effect, adds the current practice to statute.
Effective Date: June 1, 2004
For more Information, please contact: Jim Kaufman
[ Go to Bills Introduced]
Miscellaneous
HB 547   Election Law - Voting System - Baltimore City
This bill exempts Baltimore City from the current requirement that, by July 1, 2006, it must implement a uniform statewide voting system chosen by the State Board of Elections in consultation with local boards. It allows the voting system currently implemented in Baltimore City to be deemed a certified voting system.
Effective Date: October 1, 2004
For more Information, please contact: Bret Schreiber
[ Go to Bills Introduced]
Public Health
HB 358  Public Schools - Centers for Disease Control and Prevention Youth Risk Behavior Surveillance System
This bill requires the State Board of Education to establish procedures for administering the CDC Youth Behavior Surveillance System Survey. The bill would allow the State Board to omit a section of the survey if its contents are considered inappropriate.
Effective Date: July 1, 2004
For more Information, please contact: Suchita Lorick
HB 456  Firearms Offenses - Project Exile
This bill would make it a felony to possess and intend to use a firearm, display a firearm in a threatening or reckless manner or attempt to use a firearm on school property. Upon conviction for a violation of this rule, a person would be subject to imprisonment for 5-20 years and the court may not suspend any part of a mandatory sentence.
Effective Date: October 1, 2004
For more Information, please contact: Suchita Lorick
HB 652  Public Safety - Handguns - Integrated Mechanical Safety Device Requirement - Repeal
This bill would repeal the definition of integrated mechanical safety device (currently means a disabling or locking device built into a handgun and designed to prevent the handgun from being discharged unless the device is deactivated). Additionally, it repeals the provision prohibiting a dealer from selling, renting or transferring a handgun manufactured on or before 12/31/03 without an external lock as well as a gun manufactured after 1/1/03 without an integrated mechanical safety device.
Effective Date: October 1, 2004
For more Information, please contact: Suchita Lorick
HB 915  Tobacco Products - Display or Storage - Restrictions
This bill would not allow a licensed retailer to display or store tobacco products in a place accessible to a purchaser without the intervention of the retailer or an employee. This would not preempt the enactment or enforcement of local ordinances restricting the display or storage of a tobacco product.
Effective Date: October 1, 2004
For more Information, please contact: Suchita Lorick
HB 1138  Howard County - Methadone Treatment Facility - Establishment or Operation
This bill would prohibit the establishment or operation of a methadone treatment facility within 1000 feet of an existing school or residential housing area. If the county governing body approves the establishment or operation of such a facility at sites other than the ones mentioned above, they shall meet certain public hearing requirements. This bill does not apply to facilities certified prior to May 1, 2004.
Effective Date: June 1, 2004
For more Information, please contact: Suchita Lorick
HB 1274  Public Health - Fetal Alcohol Syndrome Prevention - Public Awareness Campaign
This bill requires DHMH, in collaboration with other agencies, to establish a public awareness campaign about Fetal Alcohol Syndrome for the general public and those at high risk.
Effective Date: October 1, 2004
For more Information, please contact: Suchita Lorick
HB 547  Handguns - Integrated Mechanical Safety Device - Definition
This bill alters the definition of the integrated mechanical safety device required for certain handguns. It would allow the safety device to be placed into a handgun that is integrated into or becomes intergrated into the handgun after locking or activation. In order to prevent the handgun from being discharged unless the device is deactivated, it allows for this to occur by opening with a key, unlocking a combination lock, or similar action. Additionally, the safety device could be a cable lock or a lock added to a handgun after original manufacture.
Effective Date: October 1,2004
For more Information, please contact: Suchita Lorick
HB 559  Student Health Promotion Act of 2004
This bill would require the State Board of Education to enhance physical education programs by developing criteria for a broad range of physical activities that take place on and off school grounds. Additionally, the Board would develop a certification process for students who meet the above criteria. This bill would also prohibit vending machines (except in teachers' lounges) in public elementary schools, the operation of vending machines in middle schools during regular school hours, and the operation of vending machines in high schools after the end of the last lunch period. Furthermore, on or before December 31, 2004, each county board would be required to develop a policy related to the following: providing healthier foods and drinks in vending machines; encouraging reduction in student consumption of foods of minimal value; keeping records of products sold from vending machines; allowing contracts with vendors to be available for public review; limiting contracts to three years; and prohibiting contracts that do not allow students or employees to disparage the goods or services of the contracting party.
Effective Date: August 1, 2004
For more Information, please contact: Suchita Lorick
HB 653   Vehicle Laws - Mandatory Seat Belt Use
This bill expands the application of the mandatory seat belt law by requiring motor vehicle passengers 16 years of age and older to be restrained by a seat belt regardless of where they are seated. Additionally, violation of this requirement for back seat passengers may only be enforced as a secondary violation when a police officer detains a driver for another suspected motor vehicle violation.
Effective Date: October 1, 2004
For more Information, please contact: Suchita Lorick

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 Barthel hbarthe1@jhmi.edu

Suchita Lorick slorick@jhsph.edu

Mickey Geisler mgeisler@jhu.edu

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 04mar03