Johns Hopkins Institutions

Legislative Hotline

2004 SESSION OF THE
MARYLAND GENERAL ASSEMBLY

Volume 12, Number 8

March 17, 2004

Here are some of the hot issues as the 2004 Legislative Session develops:
THE FLUSH TAX
SENATE BUDGET ACTIONS
RESIDENT WORK HOURS

BILLS INTRODUCED
STAFF CONTACT INFORMATION

The Flush Tax
The House Environmental Matters Committee voted out HB 555 - The Chesapeake Bay Watershed Restoration Fund, otherwise known as "The Flush Tax," favorable with amendments. We have not seen the amendments and cannot state with certainty exactly what they do but it is our understanding that of the amendments introduced, two will significantly help Johns Hopkins Institutions.
The first amendment changes the formula by which a company calculates the monthly fee. Originally a company would be charged $2.50 per unit of water up to 2,000 units and $1.25 for 2,001 up to 8,000 units of water, with no charge for over 8,000 units. As amended a company is charged $2.50 for the first 1,000 units and $1.25 for 1,001 up to 8,000 units.
The second amendment that will greatly relieve the burden on Hopkins is an amendment that states a company that has multiple buildings on contiguous property shall be considered one entity and can be charge no more than $105,000 annually. This has the most impact on the JHU East Baltimore Campus where, as the bill was originally drafted, we were looking at over $300,000 annually. Cumulatively, as the bill was originally drafted, the Johns Hopkins Institutions would have paid roughly $500,000 annually in fees, these amendments save the Institutions close to $250,000.
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Senate Budget Actions
Health
The Senate Budget and Taxation subcommittees completed their work this week as the full committee accepted the recommendations on the FY 2005 operating budget. The budget bill will be presented to the full Senate next week. Overall, the committee reduced the Governor's budget by approximately $140 million. Below are the major provisions of the budget of interest to Johns Hopkins.

The Medicaid budget is reduced by $10 million in total funds due to the implementation of additional hospital day limits. This is in addition to the $80 reduction implemented earlier this year.
DHMH is required to sanction MCOs for calendar year 2002 that spend less than 85% of the premium on health care and achieve below average health outcomes. The sanction is to be 50% of the difference between the premium paid to the MCO and the premium that would have resulted in an 85% medical loss ratio. In addition, language was added that in the future the sanction should equal 100% of the difference. For FY 2005, the sanction results in a $9 million budget reduction.
Medicaid enrollees will be required to pay a $10 co-payment for non-emergency use of the emergency room.
DHMH is required to implement a $1.00 co-payment for generic and preferred drugs for Medicaid beneficiaries. In addition, DHMH is to develop a pharmacy care management program for nursing home residents.
The Maryland Health Insurance Program and the AIDS Administration are to develop a pilot program to expand access to health insurance for HIV/AIDS patients.
The AIDS Administration must alter its regulatory process to allow new drugs to be added to the AIDS Drug Assistance Program formulary.
The budget restricts $5 million of the savings from the closure of the Crownsville Hospital to be used to expand statewide community mental health services.
DHMH shall conduct a study with the MCOs and health providers to identify and evaluate individuals at highest risk for chronic kidney disease in order to prolong kidney functions.
Sellinger Aid
The full Senate Budget and Taxation Committee rejected efforts to rebase the Sellinger Aid formula. This action will ensure that the Sellinger Aid formula is fully restored to its full 16% per full time student level in the next fiscal year, greatly enhancing aid for independent higher education in Maryland. This issue will now go to the full Senate for consideration.
Cigarette Restitution Fund
The Budget and Taxation Committee rejected budget language that would have altered the calculation of the CRF Public Health Grant beyond FY2005. The Committee rejected similar language that would have reduced the amount that the Governor must fund the tobacco use reduction funds.
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Resident Work Hours
The legislation regarding resident duty hours has been withdrawn by the bill's sponsor, after hearing significant opposition from the industry. However, he remarked to his House colleagues that if any of them decided to sponsor a similar bill next year, he wanted his name added to that legislation.

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

BILLS INTRODUCED
Business Opportunities
HB 663   Maryland Historical Trust - Historic Preservation Loan Fund - Refinancing Properties
This bill expands the uses of the Historic Preservation Loan Fund of the Maryland Historical Trust (MHT) to authorize loans for refinancing historic properties. Currently, the MHT Loan Fund may provide loans to nonprofit organizations, local jurisdictions, businesses, and individuals for acquiring, rehabilitating, or restoring historic properties or short-term financing for costs such as studies, surveys, and engineering services related to work required or recommended by the MHT or the State Historic Preservation Officer. The short-term financing only applies to a construction project being funded with federal or State monies. The fund also covers administrative costs directly related to the program and provides funds to buy properties for the MHT or restore historic properties owned by the MHT.
Effective Date: July 1, 2004
For more information, please contact: Bret Schreiber
HB 1168  Land Value and Incentive Taxation Act
House Bill 1168 provides that all improvements to land are exempt from the State property tax effective on the repayment of all State bonds that are outstanding or authorized on or before July 30, 2004 and to which a State property tax on assessed property is pledged. The bill also requires the Board of Public Works to set a State property rate of $0 per $100 of assessment for improvements to land; requires local governments to set property tax rates for three classes of property: land, improvements to land, and personal property. HB 1168 will provide specifications for setting local property tax rates and creates two new classes of real property: land that is used as operating real property of a railroad and land that is used as operating real property of a public utility. The bill also provides that improvements to land are divided into three subclasses: improvements to land that is used as operating property of a railroad, improvements to land that is used as operating property of a public utility, and all other improvements to land; and repeals obsolete provisions of property tax law. Local tax rates under the bill must be set as follows:

a tax rate for improvement to land, which may be equal to zero and must be lower than the rate set for land;
a tax rate for operating utility improvements to land, which must be 2.5 times the rate for improvements to land. If the improvement to land rate is equal to zero, the operating utility improvements to land rate must be equal to zero also;
a personal property tax rate for operating personal property of a public utility, which must be equal to 2.5 times the rate for improvements to land; if the improvements to land rate is equal to zero, the operating utility personal property rate must also equal zero;
a personal property tax rate, which may equal zero and must be lower than the rate for land;
a land tax rate, which must be higher than the rate for either improvements to land or personal property; and
a tax rate for land of an operating public utility, which must be 2.5 times the rate for land.
Under existing law the State property tax rate is $0.132 per $100 of assessment. State property tax revenues are deposited into the Annuity Bond Fund to pay debt service on general obligation bonds. Personal property is exempt from State taxation.
Currently, most local jurisdictions have two tax rates: a real property tax rate and a personal property tax rate. The real property tax rate is applied to real property and the operating real property of railroads. The personal property tax rate is applied to business personal property, the operating personal property of railroads, and the operating real and personal property of public utilities.
Effective Date: July 1, 2004
For more information, please contact: Bret Schreiber
SB 596  Procurement - Public-Private Partnership Act
The stated purpose of the Senate Bill 596 is to develop agreements between private entities and primary procurement units to acquire, construct, or improve facilities and infrastructure. Projects that would qualify for this bill include buildings for principal use by a public entity; utility facility infrastructure and improvements or equipment necessary to enhance building operations; an education facility and any depreciable property provided for use in a school facility that is operated as part of the public school system or as an institution of higher education. The bill also applies to any improvements, together with equipment, necessary to enhance public safety and security of buildings to be principally used by a public entity, and a recreational facility.
Procurement officers may enter into public-private partnerships based on a proposal if the proposal:

is in writing;
is sufficiently detailed to allow a judgment to be made concerning the potential utility of the offer to the State;
is unique or innovative to State use;
demonstrates that the proprietary character of the offering warrants consideration of the use of sole source procurement;
meets a need or is otherwise advantageous to the public entity; and
cannot be procured through competitive methodologies. Procurement officers are required to obtain the approval of the head of the unit and any other approval required by law.
Primary procurement units must establish procedures for the submittal, evaluation, and approval of solicited and unsolicited proposals to enter into agreements authorized by the bill. Partnerships may be for a term of up to 20 years and must apply prevailing wage rates. Annual expenditures by the State under a partnership agreement may not exceed $5.0 million. Private entities are authorized to own, lease, or acquire any right to use or operate a qualifying public facility.
The bill creates an interagency panel appointed by the Governor. Procurement officers are required to forward any partnership proposals to the panel for review and a determination whether the proposal meets the requirements of this bill. The panel has 30 days to make its determination. The proposal is deemed approved if the panel fails to make a determination in 30 days.
Effective Date: October 1, 2004
For more information, please contact: Bret Schreiber
[ Go to Bills Introduced]
General Education
HB 958  Task Force to Study Teacher Mentoring Programs
House Bill 958 establishes a Task Force to Study Teacher Mentoring Programs and requires the Task Force to report its findings and recommendations to the Governor and the General Assembly. The Task Force will evaluate the level and adequacy of existing teacher mentoring programs in public school systems in the State, evaluate the effectiveness of the Maryland Teacher Mentoring Program established under the Quality Teacher Incentive Act of 1999 and evaluate the need for additional teacher mentoring, particularly in schools where teachers are most at risk of leaving, and the best methods to create mentorship opportunities. The Task Force will also make recommendations regarding how the State can support and promote teacher mentoring programs to train and retain highly qualified teachers in Maryland public schools.
Effective Date: June 1, 2004
For more information, please contact: Bret Schreiber
HB 1405  Education - Baltimore City Board of School Commissioners - Budget and Audit Requirements
House Bill 1405 requires the Baltimore City Board of School Commissioners to submit quarterly financial statements with the State Superintendent of Schools. The bill authorizes the Superintendent to require the Board to submit a cost containment plan and reports if the Board has expenditures and debits that exceed its revenues by 1.5% or more. It authorizes the Superintendent to withhold State education funds from the Baltimore City Public School System if its debts exceed its revenues.
Effective Date: July 1, 2004
For more information, please contact: Bret Schreiber
[ Go to Bills Introduced]
General Health Care
HB 1226  Tobacco Tax - Rate
The bill increases the tax on cigarettes as follows:

from 50 to 75 cents for a package of 10 or fewer
from $1 to $1.50 for a package of 11-20
from 5.0 to 7.5 cents for each cigarette in a package of more than 20, and
from 5.0 to 7.5 cents for each cigarette in a package of free sample cigarettes.
Effective Date: July 1, 2004
For more information, please contact: Sheila Higdon
[ Go to Bills Introduced]
Higher Education
HB 853  Information Technology Board - Security of Computer Systems
House Bill 853 includes in the powers and duties of the Information Technology Board the power and duty to develop standards and make recommendations concerning the security of computer systems used by State government and educational institutions.
Effective Date: October 1, 2004
For more information, please contact: Bret Schreiber
HB 1169  Senatorial and House of Delegates Scholarships - Part-Time Students - Awards
House Bill 1169 alters the number of semester hours a part-time student must take to be eligible for a Senatorial or Delegate Scholarship. The bill requires a student to take at least 3 semester hours of courses each semester to be eligible for a Senatorial or Delegate Scholarship.
Effective Date: October 1, 2004
For more information, please contact: Bret Schreiber
SB 430  Higher Education - Morgan State University - Coordination and Governance
The bill expands the powers of Morgan State University (MSU) to include the acquisition of property, the management of public improvement projects, the borrowing of money for any corporate purpose, and the ability to sue or be sued. The Board of Regents of MSU is authorized to establish, invest in, finance, and operate business entities when the board finds that doing so would further the goals of MSU and is related to its mission. The board must submit an annual report on the business entities that are established.
Effective Date: July 1, 2004
For more information, please contact: Bret Schreiber
SB 442  Alcoholic Beverages - Underage Consumption
This bill prohibits an individual under the age of 21 from consuming alcoholic beverages and exhibiting effects of such consumption including having both the odor of an alcoholic beverage on the individual's breath and having impaired speech, appearance, or behavior. Violators age 18 and older are subject to a civil fine of up to $500 for a first offense or $1,000 for any subsequent offense.
Effective Date: October 1, 2004
For more information, please contact: Bret Schreiber
[ Go to Bills Introduced]
Health Care Facilities
HB 1518  Health Care - Adverse Patient Safety Events - Reporting and Attorney's Fees for Civil Action
The bill authorizes the Secretary of Health and Mental Hygiene to require each health care facility licensed and regulated by DHMH to establish a patient safety program, and allows DHMH to adopt regulations for this purpose. Components of the patient safety program will include:

a designated patient safety coordinator,
patient safety education programs for all staff,
process to review and evaluate the effectiveness of the program,
process to identifying and reporting near-misses and adverse events,
procedures for conducting a root cause analysis investigation,
specific time frames for the reporting to DHMH of near misses or adverse events that caused a serious disability,
documentation and record keeping system,
an information sharing system between appropriate internal and external entities, and
patient complaint program.
For a violation of any provision of the above, or of any pertinent regulations, the Secretary may revoke a facility's license, or impose a fine of $500 for each day that the facility is in violation.
In addition, the bill requires licensed physicians to report near misses and adverse events to the Board of Physicians. The Board is required to develop a process for identifying and reporting near-misses and adverse events, including:

a list of examples of near-miss and adverse events that require reporting,
designated representative to whom an event must be reported, and a time frame for reporting,
procedure to coordinate receipt of and events and prioritize them based on the level of disability or potential disability; and a procedure to assign appropriate responses to high priority adverse events, other adverse events, or near misses.
The bill also provides that the losing party will be responsible to pay the prevailing party's reasonable attorney fees and costs when a physician brings action against a hospital medical review committee, or a member of a hospital review committee.
Effective Date: October 1, 2004
For more information, please contact: Sheila Higdon
[ Go to Bills Introduced]
Health Care Practitioners
HB 1114  State Board of Physicians - Licensing and Continuing Education Requirements
The bill requires that physicians applying for a license in Maryland must complete a course or comprehensive program on fetal alcohol spectrum disorders. Additionally, the bill requires the Board of Physicians to adopt regulations that require, as a condition of renewal of licenses, 4 hours of instruction on fetal alcohol spectrum disorders.
Effective Date: October 1, 2004
For more information, please contact: Sheila Higdon
HB 1492  Psychologists - Practice Psychology - Microstimulation
The bill alters the definition of practicing psychology to include the use of microstimulation techniques and equipment to manage the pain of an individual.
Effective Date: October 1, 2004
For more information, please contact: Sheila Higdon
HB 1514  Income Tax Credit for Services Donated by Health Care Professionals
The bill allows a credit against the State income tax for health care professionals who donate their services to a community health organization or local health department that provide health care services to low-income individuals. Health care professionals include audiologists, dentists, nurses, optometrists, physical therapists, physicians, physician assistants and social workers.
The bill requires DHMH to evaluate the effectiveness of the tax credit program and report its findings to the General Assembly by November 1, 2006.
The tax credit will be applicable to taxable years beginning December 31, 2003, but before January 1, 2007.
Effective Date: July 1, 2004 (sunsets after 3 years)
For more information, please contact: Sheila Higdon
SB 389  Maryland Pharmacy Act - Practice of Pharmacy - Administration of the Influenza Vaccination
The bill alters the definition of the term practice pharmacy to include administering an Influenza vaccination to an individual in accordance with regulations adopted by the State Board of Pharmacy, and requires the Board to consult with the State Board of Physicians and the State Board of Nursing before adopting regulations to implement this change.
Effective Date: October 1, 2004
For more information, please contact: Sheila Higdon
[ Go to Bills Introduced]
Long Term Care/Nursing Homes
SB 297  Nursing Homes - Notice of Change in Condition
The bill requires a nursing home to provide written notice to the resident, and their family or representative if appropriate, in the event of the following:

change in condition,
adverse event that may result in a change in condition,
outcome or care that results in an unanticipated consequence, or
corrective action, if appropriate. Change in condition means a significant change in the resident's physical, mental or psychological status. If DHMH determines that the nursing home has not notified the appropriate individuals, DHMH may require the nursing home to do so as part of the a corrective action plan.
Effective Date: October 1, 2004
For more information, please contact: Sheila Higdon
[ Go to Bills Introduced]
Mental Health
HB 1485  Mental Hygiene Law - Rights of Mentally Ill Individuals
The bill provides mentally ill individuals with substantive and procedural rights relating to prescription medications, voluntary and involuntary admission, emergency evaluations, involuntary admissions judicial proceedings, clinical review of involuntary admissions and social worker consultations.
Effective Date: October 1, 2004
For more information, please contact: Sheila Higdon
HB 1513  Community-Based Mental Health Services - Funding
The bill requires the Governor to include a general fund appropriation of at least $5,000,000 in each fiscal year, beginning in FY 2006, to provide community-based mental health services in Anne Arundel County.
Effective Date: October 1, 2004
For more information, please contact: Sheila Higdon
HB 1535  Quality of Mental Health Care Panel
The bill creates a Quality of Mental Health Care Panel in the Mental Hygiene Administration to ensure the quality of mental health care. The panel consists of five members, three of whom are psychiatrists; one is a nurse with expertise in psychiatry and one is a social worker in the field of psychiatry. The Mental Hygiene Administration is to provide support for the Panel and the Panel is to submit a report on the number of claims submitted and the outcome of each claim to MHA no later than October 1, 2005 and then annually each October.
In addition, the bill requires MHA to advertise the complaint process in each facility that MHA is responsible for and must post information describing the complaint process, including a toll free number, and providing access and a hard copy of the complaint form. An individual may file a complaint with the Panel in the event that their rights are violated or they have suffered damages. The Panel may hold hearings related to the complaint and may impose penalties, including:

an order to cease conduct or practices that do not meet quality standards
an order to provide services that have been denied
impose a penalty
recommend that a facility's certificate to operate be revoked or not renewed
recommend suspension or discharge of an employee who interferes with the quality of mental health care
recommend that the appropriate health care board suspend or revoke a license
Effective Date: October 1, 2004
For more information, please contact: Sheila Higdon
[ Go to Bills Introduced]
Miscellaneous
HB 905  Department of Housing and Community Development - Neighborhood Business Development Program
House Bill 905 authorizes financial assistance under the Neighborhood Business Development Program to be provided to microenterprises and other nonprofit organizations. The bill also authorizes the Department of Housing and Community Development to raise revenue for the Neighborhood Business Development Fund.
Effective Date: October 1, 2004
For more information, please contact: Bret Schreiber
[ Go to Bills Introduced]
Public Health
HB 1500  Lead Risk Reduction - Challenges to Compliance Reports
Under §6-818 of the Environment Article an accredited lead inspector must submit a report to MDE certifying that a property meets lead risk reduction standards. As the law currently reads, the report is considered conclusive proof unless there is proof of actual fraud. This bill strikes the language "of actual fraud" and adds more specific language that states that the report is conclusive unless there is proof that the report contains a false statement of material fact that was intentionally made as the result of the payment or offering of money by the owner to the person performing the inspection or the person submitting the report. This assertion must be accompanied by an affidavit. The bill also lays out the procedural steps the court must take upon such an assertion. This same language has also been added to §6-819 regarding an owner's verification of completion of work to a property to meet modified risk reduction standards.
Effective Date: June 1, 2004
For more information, please contact: Heather Barthel
HB 1523  Department of Health and Mental Hygiene - Folic Acid Distribution Program
This bill would require DHMH to establish a program to distribute folic acid supplements to women of childbearing age that qualify for WIC. Local health departments would be required to distribute the supplements and provide counseling and written information about proper use and related information.
Effective Date: October 1, 2004
For more information, please contact: Suchita Lorick
[ Go to Bills Introduced]

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

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 04mar17