Legislative Hotline

2005 SESSION OF THE
MARYLAND GENERAL ASSEMBLY

 

 

 

Volume 13, Number 6������������������������������������������������������������������������������������������� March 9, 2005

 

Here are some of the hot issues as the 2005 Legislative Session develops:

DLS RECOMMENDS RESTORATION OF SELLINGER AID

STEM CELL HEARINGS

CAPITAL


RESIDENT WORK HOURS


BILLS INTRODUCED
STAFF CONTACT INFORMATION

DLS Recommends Restoration of Sellinger Aid

 

Last week the House Appropriations Committee continued their operating budget hearings.On Wednesday they held a hearing on the Maryland Higher Education Commission, and specifically on the Sellinger Aid program.As is customary at these hearings, the Department of Legislative Services (DLS) provided the legislature with recommended funding levels.DLS recommended a $5 million cut to the program.Even with this recommended cut it is a $5.1 million increase over the Governor's FY2006 allowance for the Sellinger Aid program.If that level is enacted, the JHU allowance would be $17 million, or a $2.1 million increase over what the Governor proposed for FY2006 and a $2.5 million increase over last year’s working appropriation for Johns Hopkins.This is good news and a great first step toward the potential restoration of these funds.

 

For more information please contact Bret Schreiber.

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Stem Cell Hearings

 

Last week the General Assembly held over 12 hours of hearings on the five stem cell bills that have been introduced.Three researchers from Johns Hopkins testified as private citizens in support of a bill that would take $25 million from the Cigarette Restitution Fund to fund stem cell research.One issue with the bill as introduced is that it authorizes stem cell research, thereby granting authority to the State to regulate this field.Johns Hopkins as an institution took no formal position on these bills, however letters were sent to the committee opposing other bills introduced that attempt to ban all embryonic stem cell research in the State of Maryland.While the bills were heard this week, it is unclear when the bills will be voted on by committee.

 

For more information please contact Jim Kaufman.

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Capital

 

Due to the legislative leadership’s proposal to remove projects from the Governor's capital budget, Johns Hopkins Medicine will have a bond bill introduced creating a $10 million state grant.The bill will provide funding to support both the Children’s & Maternal Hospital and Cardiovascular & Critical Care Tower.The bills will be introduced by Senator Ulysses Currie, (Chair Senate Budget and Taxation Committee) and Delegate Norm Conway (Chair, House Appropriations Committee).The bill will be heard on March 19, 2005.

 

For more information please contact Jim Kaufman.

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BILLS INTRODUCED

General Education

Health Care Facilities

Higher Education

Miscellaneous


BILLS INTRODUCED

 

General Education

HB1490 Education - Local School Systems - School Facilities - Partnerships with Alternative Providers

House Bill 1490 will require county boards of education, as part of the County’s comprehensive master plan beginning in July 2005, to determine their current capacity to provide full-day kindergarten programs and prekindergarten programs.The bill allows county boards to explore partnerships with alternative early learning and child care providers, or full-day kindergarten programs in order to provide capacity for full-day kindergarten and prekindergarten program services.

 

Effective Date:June 1, 2005

 

For more information, please contact:Bret Schreiber

 

[Go to Bills Introduced]

 

 

Health Care Facilities

hb1385 Maryland Health Care Commission - Powers and Certificate of Need Requirements

This bills allows the Maryland Health Care Commission to impose reasonable fines for failure to file information or reports as required, failure to obtain Commission approval before initiating a health care project for which the Commission approval is required, failure to meet performance requirements for a health care project for which Commission approval is required, violation of terms of a certificate of need, or any other violation of this subtitle.

A fine assessed by the Commission may not exceed $ 1,000 per violation for each day a violation continues.The Commission shall consider the following factors in determining the amount of any fine assessed:

  1. the willfulness of the conduct that results in a violation,
  2. the extent of actual or potential public harm caused by the violation,
  3. the cost of auditing or investigating the violation, and
  4. the history of previous violations by the entity that assessed a fine.

 

A certificate of need is required before any of the following capital expenditures are made by or on behalf of a hospital any expenditure that, under generally accepted accounting principles, is not properly chargeable as an operating or maintenance expense, if the expenditure is made as part of an acquisition, improvement, or expansion, and, after adjustment for inflation consistent with regulations adopted by the Commission, the total expenditure, including the cost of each study, survey, design, plan, working drawing, specification, and other essential activity, is more than $2,500,000.A certificate of need is also required if the expenditure is made as part of a replacement of any plant and equipment of the hospital and is more than $2,500,000, after adjustment for inflation consistent with regulations adopted by the Commission, results in a substantial change in the bed capacity of the hospital or results in the establishment of a new medical service in a hospital that would require a certificate of need.

 

A certificate of need is required before any equipment or plant is donated to a hospital, if a certificate of need would be required under this subsection for an expenditure by the hospital to acquire the equipment or plant directly.A certificate of need is required before any equipment or plant is transferred to a hospital at less than fair market value if a certificate of need would be required under this subsection for the transfer at fair market value.A certificate of need is required before a person acquires a hospital if a certificate of need would be required under this subsection for the acquisition by or on behalf of a hospital.

 

This subsection does not apply to site acquisition, acquisition of a hospital if, at least 30 days before making the contractual arrangement to acquire the hospital, written notice of the intent to make the arrangement is filed with the Commission and the Commission finds, within 30 days after the Commission receives notice, that the health services or bed capacity of the hospital will not be changed, acquisition of business or office equipment that is not directly related to patient care, capital expenditures to the extent that they are directly related to the acquisition and installation of major medical equipment, a capital expenditure made as part of a consolidation or merger of two or more hospitals, or conversion of a hospital or part of a hospital to a nonhealth-related use if:

  1. at least 45 days before an expenditure is made, written notice of intent is filed with the Commission;
  2. within 45 days of receiving notice, the Commission in its sole discretion finds that the proposed consolidation, merger, or conversion is not inconsistent with the state health plan or the institution-specific plan developed by the Commission as appropriate, will result in the delivery of more efficient and effective health care services; and is in the public interest; and
  3. within 45 days of receiving notice, the Commission shall notify the hospital of its finding.

 

Also exempted are capital expenditures made by a hospital for equipment, construction, or renovation that is not directly related to patient care; and does not increase patient charges or hospital rates.�� A capital expenditure by a hospital for a project in excess of $2,500,000 for construction or renovation that may be related to patient care but does not require, over the entire period or schedule of debt service associated with the project, a total cumulative increase in patient charges or hospital rates of more than $1,500,000 for the capital costs associated with the project as determined by the Commission, after consultation with the health services cost review Commission if at least 45 days before the proposed expenditure is made, the hospital notifies the Commission and within 45 days of receipt of the relevant financial information, the Commission makes the financial determination required under item 2 of this subparagraph; and the relevant financial information to be submitted by the hospital is consistent with the regulations adopted by the Commission, after consultation with the health services cost review Commission.

 

A plant donated to a hospital which does not require a cumulative increase in patient charges or hospital rates of more than $1,500,000 for capital costs associated with the donated plant as determined by the Commission, after consultation with the health services cost review Commission if:

  1. at least 45 days before the proposed donation is made, the hospital notifies the Commission and within 45 days of receipt of the relevant financial information, the Commission makes the financial determination required under this subparagraph; and
  2. the relevant financial information to be submitted by the hospital is consistent with regulations adopted by the Commission after consultation with the health services cost review Commission.

 

This subsection may not be construed to permit a hospital to offer a new health care service for which a certificate of need would otherwise be required.A hospital may acquire a freestanding ambulatory surgical facility or office of one or more health care practitioners or a group practice with one or more operating rooms used primarily for the purpose of providing ambulatory surgical services if the facility, office, or group practice has obtained a certificate of need, has obtained an exemption from certificate of need requirements, or did not require a certificate of need in order to provide ambulatory surgical services after June 1, 1995.Nothing in this subsection may be construed to permit a hospital to build or expand its ambulatory surgical capacity in any setting owned or controlled by the hospital without obtaining a certificate of need from the Commission if the building or expansion would increase the surgical capacity of the state health care system.

 

Effective Date:July 1, 2005

 

For more information, please contact:Heather Barthel

 

[go to Bills Introduced]

 

 

Higher Education

HB1304 Student Financial Assistance Reform Act of 2005

House Bill 1304 will provide targeted scholarships to students in Maryland. The State has an interest in promoting the fields of education and nursing, while also giving greater support to students transferring from a community college to a four-year institution. The bill will do five things:

  1. Create the Distinguished Scholar Program for Community College Transfer Students.It will authorize the Maryland Higher Education Commission (MHEC) to award merit scholarships of $3,000 to community college students who transfer to four-year institutions and require the Governor to include $500,000 in the program for fiscal year 2007 and $1million for fiscal years 2008 and 2009.
  2. Permit recipients of nursing scholarships to fulfill the service requirement by working part-time for 2 years for each year the recipient receives a scholarship.It addresses the long waiting list for nursing scholarships by requiring the Governor to include an additional $1 million forthe program for fiscal years 2007 through 2009.
  3. Permit eligible applicants to receive a Sharon Christa McAuliffe teacher education scholarship for 3 years (instead of 2).The bill addresses the critical teaching shortage in Maryland public schools by requiring the Governor to include an additional $500,000 in the program for fiscal years 2007 through 2009.
  4. Require MHEC to establish a workgroup to study the consolidation of economic development student assistance grants and work-based shortage grants into a single program.It will also require the Commission to report back to the Governor and General Assembly by November 15, 2005.
  5. Express legislative intent that the appropriations required for the Distinguished Scholar Program for Community College Transfer Students, the Christa McAuliffe teacher program, and the nursing program shall be funded through a reduction in the appropriation to the HOPE scholarship programs.

 

Effective Date:July 1, 2005

 

For more information, please contact:Bret Schreiber

 


hb1373 Sharon Christa McAuliffe Memorial Teacher Education Award - Qualification Requirements

House Bill 1377 establishes the Disabled Veterans and Dependent Tuition Reduction Program.The bill requires eligible institutions to reduce the amount of a qualifying individual's tuition by 10% and providesfor the duration of a qualifying individual's tuition assistance.A qualified individual is a veteran, as defined under state statute, who is permanently or totally disabled, or is at least 16 years old and the spouse, son, or daughter of a veteran who is totally or permanently disabled.

 

Effective Date:July 1, 2005

 

For more information, please contact:Bret Schreiber

 


hb1377 Higher Education - Disabled Veterans and Dependents - Tuition Reduction

House Bill 1377 establishes the Disabled Veterans and Dependent Tuition Reduction Program.The bill requires eligible institutions to reduce the amount of a qualifying individual's tuition by 10% and providesfor the duration of a qualifying individual's tuition assistance.A qualified individual is a veteran, as defined under state statute, who is permanently or totally disabled, or is at least 16 years old and the spouse, son, or daughter of a veteran who is totally or permanently disabled.

 

Effective Date:July 1, 2005

 

For more information, please contact:Bret Schreiber

 


HB1439 Maryland Higher Education Commission - Encouragement and Facilitation of MarylandOnline

HB 1439 defines MarylandOnline as a consortium of colleges and universities in the State that offer certificate and degree programs in an on-line format.The bill asks the Higher Education Commission to encourage and facilitate the perpetuation of MarylandOnline.

 

Effective Date:October 1, 2005

 

For more information, please contact:Bret Schreiber



SJ0008 Higher Education - Commission to Study Maryland's Commitment to Higher Education

This joint resolution establishes a 23-member Commission to study Maryland’s commitment to and funding of higher education.The Commission must engage the services of a consultant to conduct a study of current and future funding needs for the constituent institutions of the University System of Maryland (USM), community and private higher education.The Commission must solicit the views of the public, as well as State higher education agencies and national higher education groups.The Commission must alsoreview options and make recommendations relating to the establishment of a consistent and stable funding mechanism that will allow Maryland institutions of higher education to ensure accessibility and achieve national eminence.The Commission must report its findings and recommendations by July 1, 2006.The President of Johns Hopkins or a designee will serve as a member of the Commission.

 

Effective Date:July 1, 2005

 

For more information, please contact:Bret Schreiber

 

[Go to Bills Introduced]

 

 

Miscellaneous

HB1400 Income Tax - Credit for Homeland Security Expenses

House Bill 1400 defines the following:"Business Entity" means a person conducting or operating a trade or business; or an organization that is exempt from taxation under � 501(c)(3) or (4) of the Internal Revenue Code."Business Entity" includes a person conducting a business that manages or operates commercial rental property or residential multifamily rental property."Licensed Security Guard Agency" means a person who is licensed by the secretary of state police to conduct a business that provides security guard services.

 

"Qualified Premises" means a building or housing development identified by federal or state homeland security officials as a target of opportunity for activities that threaten the health and safety of the public."Security Device" includes access control systems and equipment, barrier fencing, bullet-proof glass, commercial locking devices, deterrent landscaping and lighting, and surveillance equipment."Security Guard Services" includes any activity that is performed by a licensed security guard agency to protect any individual or property on behalf of a business entity.

 

A business entity may claim a credit against the state income tax for the taxable year in which security devices are purchased and installed and in which security guard services are provided in order to secure a qualified premises owned or operated by the business entity.A business entity that is exempt from taxation under �501(c)(3) or (4) of the internal revenue code may claim a credit against the state income tax due on unrelated business income.

 

The amount of the credit allowed under this section equals the sum of:

  1. 75% of the expenses incurred during the taxable year for the purchase and installation of a security device installed on a qualified premises after June 30, 2005; and
  2. 10% of the fees paid during the taxable year to a licensed security guard agency that is hired after June 30, 2005 to provide security guard services for qualified premises.

 

The amount of the credit allowed may not exceed $100,000 for a business entity in any calendar year.The credit allowed under this section may not exceed the state income tax imposed for the taxable year.The unused amount of the credit for any taxable year may not be carried over to any other taxable year.

 

Effective Date:January 1, 2005

 

For more information, please contact:Heather Barthel

 

HB1460 Workers' Compensation - Standards of Health Care - Accessibility and Schedule of Treatment

This bill requires the Chairman of the Workers’ Compensation Commission to provide an evaluation of injured workers' access to health care, including:

  1. findings as to whether there is adequate access to quality health care and products for injured workers;
  2. a review of the information considered by the Commission to arrive at its findings; and
  3. any recommendations for legislative action to remove any identified barriers to access to health care for
  4. injured workers.

 

On or before December 1, 2006, the Commission shall adopt regulations setting a schedule of medical treatment utilization standards that shall address, at a minimum, the frequency, duration, intensity, and appropriateness of treatment procedures and modalities commonly performed in workers' compensation cases.

 

As soon as practicable, after the beginning of fiscal year 2007, and at least every 3 years thereafter, the Commission shall conduct a review and evaluation of evidence-based, peer-reviewed, nationally recognized standards of care, and report the findings of the review to the House Economic Matters Committee, Senate Finance Committee, and Workers' Compensation Benefit and Insurance Oversight Committee of the General Assembly.

 

At a minimum, the review required under this subsection shall include an evaluation of medical review standards:

  1. in other states;
  2. at the federal level; and
  3. in a variety of medical benefit systems.

 

Based on each review and evaluation conducted under this subsection, the Commission shall make appropriate revisions to the schedule of medical treatment utilization standards.

 

Effective Date:October 1, 2005

 

For more information, please contact:Heather Barthel

 

[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

Heather Barthel������������������� [email protected]

Mickey Geisler��������������������� [email protected]

Matt Greenwood������������������ [email protected]

Sheila Higdon��������������������� [email protected]

Jim Kaufman����������������������� [email protected]

John Safapour�������������������� [email protected]
Bret Schreiber��������� ����������� [email protected]

Cathy Ximenez������������������� [email protected]

 

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