Legislative Final

Report

2005 SESSION OF THE
MARYLAND GENERAL ASSEMBLY

 

 

 

Volume 13, Number 10���������������������������������������������������������������������������������������� May 26, 2005

 

Following a special session on medical liability reform that abbreviated holiday plans and fell short of its intended mark, the 2005 Legislative Session began with heightened partisan tensions that continued for the entire 90 days.�� Nevertheless, the legislative and administrative branches were able to finally agree on a balanced budget and even assured enough reserves to prevent next year’s spending plan from tarnishing the 2006 elections.� Few of the Governor Ehrlich’s priorities passed; however the General Assembly passed its own priorities, such as an increase in the minimum wage and the Fair Share Health Care Fund Act, both of which face potential vetoes followed by possible overrides at the beginning of the 2006 Session.� Despite the political climate, Johns Hopkins Institutions faired well, securing State support on its major legislative priorities for the 2005 Session, including capital budget requests, Sellinger Aid, the Cigarette Restitution Fund Program, and Medicaid fee increases.� This report describes in detail the results of the session.

To view the legislative information below, click on the subject of interest to go directly to that area or scroll down to view the entire document.

 

BUDGET

�         Office of Children, Youth and Families

�         Aid to University of Maryland Medical System (UMMS)

�         Video Lottery Terminals (Slots)

 

 

ECONOMIC DEVELOPEMNT AND GENERAL BUSINESS

 

 

EDUCATION

 

 

HEALTH

�         Lead Paint

�         Gun and Tobacco Control

�         Obesity

�         Immunizations

�         Vehicle Passenger Safety

�         MTBE

�         Computer Recycling

 


STAFF CONTACT INFORMATION

 

 

 

 

BUDGET

 

Capital Budget

 

During the final hours of the session, the General Assembly adopted the Governor’s $670 million capital budget with 45 amendments.� Traditionally, the Governor’s budget includes approximately $15 million for legislative initiatives and $5 million for the Maryland Hospital Association Bond program.� As introduced this year, the capital budget bill excluded funding for these projects; however, the General Assembly included support for numerous community initiatives and projects recommended by the Maryland Hospital Association.�

 

One of the major items that put pressure on this year’s capital budget was public school construction.� The Governor provided for $157.6 million in public school construction.� The Legislature increased that amount by $94.2 million for a total $251.8 million (or 60% over the Governor’s proposed budget and more than twice the amount provided in FY 2005).� As the State continues to attempt to fulfill goals set by the Public School Facilities Act of 2004, we anticipate that capital for public school construction will continue to put pressure on other projects in the State’s Capital Improvement Plan—at least until another revenue source is identified to fulfill these obligations.

 

Three projects requested by Johns Hopkins were funded by the Governor and the General Assembly.� Johns Hopkins Medicine received a total State commitment of $50 million over five years to support both the Children’s and Maternal Hospital and the Cardiovascular and Critical Care Towers.� For FY 2006 Johns Hopkins Medicine will receive $10 million, $5 million for each of the JHM projects.

 

The Johns Hopkins University received $2.75 million in State support, through the MICUA capital budget program, for construction of the Computational Sciences Building for the Whiting School of Engineering on the Homewood campus.

 

Below is a summary of other major projects that were funded in the capital budget:

 

�         University of Maryland Medical Center $15 million

o                   New Diagnostic and Treatment Facilities $10 million

o                   New Ambulatory Care Center $5 million

�         Maryland Hospital Association Projects $5 million

o                   Adventist HealthCare $400,000

o                   Atlantic General Hospital $100,000

o                   Calvert Memorial Hospital $1.1 million

o                   Civista Medical Center $1.2 million

o                   Mercy Medical Center $800,000

o                   North Arundel Hospital $600,000

o                   Northwest Hospital Center $800,000

�         East Baltimore Development, Inc. (Baltimore City) $4 million

�         Baltimore City Westside Revitalization (Baltimore City) $4 million

�         East Baltimore Community Recreation and Learning Center (Baltimore City) $300,000

�         Fayette Street Outreach Center (Baltimore City) $200,000

�         Great Blacks in Wax Museum (Baltimore City) $1 million

�         Kennedy Krieger Institute (Baltimore City) $1 million

�         Sheppard Pratt Hospital (Baltimore) $2 million

�         Prince George’s Hospital Center (Prince George’s) $5 million

 

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Budget – Operating

 

The General Assembly adopted a $25.9 billion budget, which includes $12.3 billion in General Funds. �This is an $895 million increase, or 7.9%, over the FY 2005 budget.� In addition to balancing the FY 2006 budget and remaining within spending affordability limits, the adopted budget leaves a surplus of $385 million above the threshold required for the State’s Rainy Day Fund.

 

Where It Goes: Budget by Purpose

 

 

Below is a summary of various sections of the budget not addressed in other sections of this report.� For a review of the education, Medicaid, and the Cigarette Restitution Fund, please see those sections of the report.�

 

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Office of Children, Youth and Families

The Governor’s Office of Children, Youth and Families (OCYF) is an interagency office that focuses on policy collaborations regarding prevention, intervention, and treatment programs for children and families, with special focus on children with intensive needs that can only be addressed through coordination between various State agencies.� In addition to these efforts, OCYF is the presiding authority over local management boards that provide grants to various community organizations to support efforts on childhood immunizations, preventing low birth weight babies, and other public health efforts.� While the budget for OCYF was greatly reduced, eliminating nearly 50% of the positions in the office, the General Assembly failed to enact HB 293 and SB 222, either of which would have re-authorized the operation of the office.� Without this legislation, the office will be eliminated on July 1, 2005.� The Governor has announced intentions to restructure the office through an executive order, and it is expected that the grants provided to local community health organizations will continue to be provided.� It is unclear at this time how the funds will be handled administratively.

 

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Aid to University of Maryland Medical System (UMMS)

The FY 2006 budget includes $7.8 million for UMMS, reflecting a $1.8 million or 19.1% reduction from FY 2005.� The Governor’s budget reduced funding by $1.6 million for facility renewal at Shock Trauma, and the General Assembly further reduced the budget by cutting $221,000 that was intended to offset uncompensated care expenses at Kernan Hospital.� Language was added to the budget requesting that UMMS report to the budget committees on its long-term capital and facility renewal requirements at Shock Trauma and possible funding sources for improvements.

 

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Video Lottery Terminals (Slots)

There were nearly a dozen slot machine bills introduced during the 2005 Legislative Session.� Of the bills introduced, two (HB 1361 and SB 205) passed their respective houses in the legislature.� However, they contained major differences that were not resolved prior to Sine Die, which obstructed the passage of any slot legislation for the third consecutive year.� In short, the House plan proposed the installation of fewer machines, and would have required competitive bidding to locate them in Anne Arundel, Allegany, Frederick, and Harford counties.� The Senate plan called for seven unspecified locations.

 

Both bills earmarked money to pay for K-12 education and approximately $150 million per year for K-12 school construction, but large differences remained as to how much money would be dedicated to pay for the implementation of the Bridge to Excellence in Public Schools Act of 2002 (Thornton Commission), in addition to earmarks for local governments, the horse racing industry, and other parties.

 

Below is a summation of the two bills:

 

HB 1361 authorized the operation of video lottery terminals (VTLs) in the State with the State Lottery Commission regulating their operation.�

 

The House Bill:

  • Limited the number of machines to 9,500, to be located in four counties
  • Estimated the total fiscal impact at $1 billion
  • Limited 4.3% of total revenue for administration expenses
  • Dedicated 30% of total revenue for the operators/licensees
  • Dedicated 15% of total revenue for local development grants to counties
  • Dedicated 3% of total revenue for local communities where slots are located
  • Dedicated 9% of total revenue to enhance horse racing purses
  • Dedicated 3% of total revenue to horse tracks for capital improvements
  • Dedicated 37.5% of total revenue to fund public school construction

 

The bill also funded what was termed as the Geographic Cost Index (GCI) for K-12 education.� The funding started at $54 million in FY 2007 and reached $129 million by FY 2011.� The GCI was the only slots revenue dedicated to operating funds for K-12 in this bill.

 

Senate Bill 205, the Administration's slot machine legislation, passed the Senate.� It authorized up to 15,500 VLTs at seven locations.� It also provided for one-time application fees; provided for the distribution of VLT proceeds; and created the Education Trust Fund (ETF).� It mandated funding for the Geographic Cost of Education Index (GCEI) and allocated $100 million for public school construction.�

 

The Senate Bill:

  • Permitted 15,500 machines
  • Estimated a fiscal impact of $1.6 billion at full maturity, with over $800 million going into the Education Trust Fund
  • Limited 4.3% of total revenue for administrative expenses
  • Dedicated 36% of total revenue for operators/licensees
  • Dedicated 5% of total revenue for local governments where a slots facility is located
  • Dedicated 5.8% of total revenue to enhance horse racing purses
  • Dedicated 48.9% of total revenue for K-12 education, of that amount, $150 million per year for 8 years went toward capital school construction, the rest went toward funding the full cost of Thornton for operating purposes.

 

Listed below are the bills that passed during the 2005 Maryland Legislative Session:

 

HB0340� Creation of a State Debt - Maryland Consolidated Capital Bond Loan of 2005 and the Maryland Consolidated Capital Bond Loans of 1998, 2000, 2002, 2003, and 2004�

The General Assembly adopted the Governor’s $670 million capital budget, with 45 amendments.� Traditionally, the Governor’s budget includes approximately $15 million for legislative initiatives and $5 million for the Maryland Hospital Association Bond program.� However, the capital budget as introduced excluded funding for these projects, but the General Assembly’s amendments included support for numerous community initiatives and projects recommended by the Maryland Hospital Association.

 

Three projects requested by Johns Hopkins were funded by the Governor and the General Assembly.� Johns Hopkins Medicine received a total State commitment of $50 million over five years to support both the Children’s and Maternal Hospital and Cardiovascular and Critical Care Towers.� For FY 2006, each of these projects is scheduled to receive $5 million.

 

The Johns Hopkins University received $2.75 million in State support, through the MICUA capital budget program, for construction of the Computational Sciences Building for the Whiting School of Engineering on the Homewood campus.

 

Effective Date:� June 1, 2005

For more information, please contact:� Jim Kaufman & Bret Schreiber

 

HB0147� Budget Reconciliation and Financing Act of 2005�

The Budget Reconciliation and Financing Act (BRFA) allows the State to recover the amount of Medicaid funding spent on an individual from a surviving spouse, unless at the time of the program recipient’s death the spouse is less than 21 years of age, blind, or permanently disabled.� This section is projected to save the State approximately $100,000 in FY 2006.� In addition, the Act allows the Medicaid program to require an $8.50 co-pay, increased from $7.50, for brand-name pharmaceuticals, producing an estimated $200,000 savings.

 

The Act also declares that it is the intent of the General Assembly to use the most accurate full-time equivalent enrollment figures in calculating the State general funds per full-time equivalent student for determining State aid under the Senator John A. Cade Funding Formula, the Joseph A. Sellinger Program, and the Baltimore City Community College Funding Formula. The Maryland Higher Education Commission is required to study the accuracy of the enrollment figures used presently and any alternatives that would improve accuracy.� The recommendations will be reported to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the House Ways and Means Committee by October 1, 2005.

 

Effective Date:� Various

 

For more information, please contact:� Jim Kaufman

 

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ECONOMIC DEVELOPMENT AND

GENERAL BUSINESS

 

Several bills were introduced this year that negatively impacted the business operations of the Johns Hopkins Institutions.� In particular, HB 1 imposed recordation and transfer taxes on the transfer of real property with a value of $1 million or more when the transfer is achieved through the sale of a “controlling” interest in a corporation, partnership, limited liability company, or other form of unincorporated business.� HB 1 did not pass the Senate.�

 

SB 494 prohibited an employer from taking action against employees for “whistle blowing.”� The bill also required employers to provide written notices of protections and remedies for employees.� There was also legislation that required major employers such as Johns Hopkins to provide compensation for unused or accumulated vacation leave upon an employee’s termination.�� Both of these measures were defeated.

 

The Energy Efficiency Standards Act passed during the 2004 legislative session.� It became apparent that these new standards created unintended consequences and that a corrective bill would be necessary.� Of concern to Hopkins was the inclusion of ultra low temperature freezers within the definition of “Commercial Refrigerator Cabinet.”� Manufactures indicated that it would be nearly impossible to design a freezer that maintains temperatures of less than minus 40 degrees Fahrenheit that would meet the established Energy Efficiency Standards.� The corrective bill amended the definition to exclude ultra low temperature freezers from the standards.� There was significant debate surrounding other provisions of the bill but it ultimately passed during the final days of the legislative session.

 

Hopkins also supported the passage of HB 449, the enactment of which reinforced two home buying programs.� The first program, the Home Buyer Assistance Program, will assist homebuyers in receiving low-interest mortgage loans, along with allowing them some down payment and closing cost assistance options. This program coordinates with similar programs offered by private employers and local governments.� Additionally, the bill codified the “Live Near Your Work” program, originally launched in 1997 as a cooperative effort between the State, local governments, and private employers in an endeavor to revitalize designated neighborhoods.

 

Senator Verna Jones introduced SB 239 - Pilot Program for the Long-Term Employment of Qualified Ex-Felons.� This bill would have provided financial support to businesses willing to hire certain qualified ex-felons.� Pamela Paulk provided compelling testimony, and the Senate Budget and Taxation Committee, as well as the full Senate, passed the bill unanimously.� The bill was never acted on in the House.

 

Listed below are the bills that passed during the 2005 Maryland Legislative Session:

 

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Business Operations�

 

HB1063� Financial Institutions - Maryland Money Transmission Act – Scope

The statute creates an exemption for higher education institutions under the Maryland Money Transaction Act.� Under the Act, a person may not engage in the business of money transmission unless the person is licensed by the Commissioner of Financial Regulation or exempt from licensing requirements. It also creates an exemption from the licensing requirements of the Maryland Money Transmission Act for accredited institutions of higher education in Maryland.� The exemption will allow these institutions to offer a debit card as part of a student’s identification card. Students who deposit money in an account with an institution may then use their school identification cards to pay for goods and services on campus and at off-campus businesses that have contracted with the institution. Johns Hopkins already engages in this activity, and these provisions clarify existing practice.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Bret Schreiber

 

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Economic Development

 

hb0214� Business and Economic Development - Financial Assistance Programs

This Act designates the members of the Maryland Industrial Development Financing Authority (MIDFA) to also serve as the members of the Maryland Economic Development Assistance Authority (MEDAA).� It terminates the terms of the current members of MIDFA and MEDAA on July 1, 2005, and provides for the appointment of seven new (MIDFA) members with staggered terms.� The Act raises the amount of assistance that the Maryland Industrial Development Fund (MIDF) can provide in any one transaction from $50,000 to $250,000 and also alters the economic criteria that determine the counties in which businesses must be located in order to be eligible for certain MIDF assistance. Businesses eligible for MIDF assistance must be located in qualified distressed counties.� Areas currently meeting the definition are Baltimore City, and Allegany, Caroline, Cecil, Dorchester, Garrett, Somerset, and Worcester counties.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #360.

 

For more information, please contact:� Bret Schreiber

 

HB0449� Housing - Community Development Administration - Financial Assistance Programs for Purchasing a Home Near Work

This Chapter requires the Department of Housing and Community Development (DHCD) administer two financial assistance programs to help people buy homes near their place of employment. The first program, the Home Buyer Assistance Program, is intended to assist buyers with receiving low-interest mortgage loans and with down payment and closing cost assistance options. This program coordinates with, and matches where appropriate, similar programs offered by private employers and local governments. This program codifies existing practice, as the Maryland Mortgage and the Down Payment and Settlement Expense Programs currently provide low-interest mortgage loans, down payment, and closing cost assistance to eligible homebuyers with low-to-moderate-income households through private lending institutions throughout the State.

 

The second program codifies a program known as “Live Near Your Work,” originally launched in 1997 as a cooperative effort between the State, local governments, and private employers to revitalize designated neighborhoods. This program offers matching grants of at least $1,000 each from the State, local government, and private employers to home buyers purchasing homes near their work. The program was last funded in fiscal 2003.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Bret Schreiber

 

HB0664� Biotechnology Investment Incentive Act

This Act creates a tax credit against the State income tax for individuals, corporations, and venture capital firms that invest in Maryland biotechnology companies. It also defines a “qualified Maryland biotechnology company” as a biotechnology company that has: (1) its headquarters and base of operations in Maryland; (2) fewer than 50 employees; and (3) has been in business for less than 10 years. The tax credit is equal to 50 percent of an eligible investment made in a qualified biotechnology company during the taxable year. The maximum amount of the credit cannot exceed: (1) $50,000 for individuals and (2) $250,000 for corporations and venture capital firms.� A taxpayer claiming the credit may claim a refund.� The amount of the refund equals the amount by which the credit exceeds the tax liability in the year it is claimed.

 

Effective Date:� July 1, 2005

Signed by the Governor on 4/26/05.; Chapter #99.

 

For more information, please contact:� Bret Schreiber

 

SB0217� Research and Development Tax Credit

The Chapter extends the sunset date for the research and development tax credits (R & D credits) from June 30, 2006, to June 30, 2012.� It also limits to seven years the number of unused credits that may be carried forward. The time period in which the R & D tax credits may be earned is extended to tax years 2005 through 2010.

 

The Department of Business and Economic Development (DBED) is required to report annually to the Governor and the General Assembly by January 10 of each year on the administration of the R & D tax credit.� DBED is authorized to award $6 million in credits in each year, the same amount provided under the current R & D tax credit program.

 

Effective Date:� July 1, 2005

Signed by the Governor on 4/26/05; Chapter #98.

 

For more information, please contact:� Bret Schreiber

 

SB0255� Department of Transportation and Maryland Transportation Authority - Debt, Authority, and Financing

This Chapter alters the Maryland Transportation Authority (MdTA) bonding authority and makes provisions for funding the InterCounty Connector (ICC).� It repeals bonding restrictions enacted during the 2004 Session that would have required legislation approving the issuance of any bonds to finance a transportation project and the maximum principal amount of bonds to be issued.� The Chapter permits the MdTA to issue revenue bonds secured by toll revenues in any amount, as long as the outstanding principal on all bond issues does not exceed a cap of $1.9 billion on June 30 of any year or a more restrictive cap imposed by the General Assembly for the next fiscal year. It also expands the definition of tax-secured debt to include debt issued by the Maryland Department of Transportation (MDOT) or MdTA that is secured by a pledge of future federal aid from any source, and limits this type of debt to $750 million in principal for 12 years.

 

As passed, the Chapter provides that the State and MdTA shall finance the ICC by the:

• transferring of $22 million in FY 2005 and $38 million in FY 2006 from the Transportation Trust Fund (TTF) to MdTA;

• transferring at least $30 million from TTF to MdTA for FY 2007 through 2010;

• transferring from the General Fund an aggregate appropriation that equals $264.9 million by FY 2010;

• transferring of at least $10 million in federal aid as deemed prudent;

• issuing bonds secured by a pledge of future federal aid not to exceed $750 million by MdTA; and

• issuing revenue bonds by MdTA that are not secured by a pledge of future federal aid.

 

Effective Date:� June 1, 2005

 

For more information, please contact:� Bret Schreiber

 

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General Business

 

HB0384� Workers' Compensation - Evaluation of Permanent Impairments

This Act permits a medical evaluation that is reported to the Workers Compensation Commission, if a permanent impairment involves a behavioral or mental disorder, a licensed psychologist or qualified physician to perform the evaluation of only the mental or behavioral portion of the permanent impairment and report the evaluation to the Commission.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #371.

 

For more information, please contact:� Heather Barthel

 

HB0391� Labor and Employment - Minimum Wage – Increase

This Chapter amends �3-413 of the Labor and Employment Article - Payment of Minimum Wage.� Previousley State law mandated that an employee be paid at least the minimum wage set under the Federal Act.� This Chapter amends that section allowing an employee to be paid the greater of the minimum wage set under the Federal Act or a wage that equals a rate of $6.15 per hour.

 

Effective Date:� January 1, 2006

 

For more information, please contact:� Heather Barthel

 

HB0751� Labor and Employment - Payment of Wages - Credit to Debit Card or Card Account

This Act adds to � 3-502 of the Labor and Employment Article - Payment of Wage.� It authorizes the credit of the wage of an employee to a debit card or card account from which the employee is able to access the funds through withdrawal, purchase, or transfer if it is authorized by the employee and any fees applicable to the debit card or card account are disclosed to the employee.

 

Effective Date:� June 1, 2005

 

For more information, please contact:� Heather Barthel

 

HB1030� State Government - Energy Efficiency Standards

This Act amends � 9-2006 of the State Government Article - Maryland Energy Efficiency Standards Act by amending the definition of “Commercial refrigeration cabinet" to not include any ultra-low temperature freezer designed and marketed exclusively for medical, scientific, or research purposes.� The Act also defines "ultra-low temperature freezer" as a freezer designed to maintain temperatures of less than minus 40 degrees Fahrenheit.� It provides that the Maryland Energy Administration may limit a delay of an effective date for any standard established by the Act.� Any manufacturer that has certified a product to another State or to the federal Energy Star Program with efficiency standards equivalent to or more stringent than Maryland’s may provide the administration with a copy of the certification that the manufacturer made to the other State or agency in place of a separate certification for Maryland.� If a national efficiency standard is established by federal law or regulation for a product listed covered by the Act, the labeling requirements do not apply to that product.� All display models of products shall be displayed with a mark, label, or tag on the product.

 

Effective Date:� June 1, 2005

Signed by the Governor on 5/10/05; Chapter #411.

 

For more information, please contact:� Heather Barthel

 

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EDUCATION

 

 

Financial Aid

The Governor’s budget increased the State’s financial aid program 17.5% over the FY 2005 working appropriation, resulting in a total appropriation of $93.5 million.� The largest increase was in the Educational Excellence Award Program, the State’s need-based aid program, which increased $11.8 million.� Regarding other need-based aid programs, the Loan Assistance Repayment Program increased 189% and the Part-time Grant Program increased 54%.� The HOPE Scholarship program was cut by 26%.� Aside from the programs listed below, all other State scholarship programs were funded at the same level as the FY 2005 appropriations.

 

Educational Excellence Awards - ����������� $61.7 million ($11.8 million increase)

Delegate Scholarships - ��������������� $4.8 million ($1.1 million increase)

HOPE Scholarships - �������������������� $6.0 million ($4.1 million decrease)

Part-Time Grant Program -������������ $4.7 million ($730,000 increase)

Conroy Memorial Scholarships - $362,000 ($140,000 increase)

Loan Assistance Repayment - ���� $793,000 ($320,000 increase)

 

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General Education

This year, the primary focus in education was funding for the Bridge to Excellence in Public Schools Act of 2002, otherwise known as “Thornton.”� FY 2006 marks the fourth year of the five-year phase-in schedule of the State education aid formulas enacted through Thornton.� State education aid this year will increase by $393.6 million, for a total of $4 billion, a10.8% increase.

 

From FY 2002 to FY 2006, State education aid has increased by more than $1.1 billion, an increase of 39.6% or an average 8.7% per year. Further increases of approximately $500 million per year are projected for FY 2007 and FY 2008, at which time the phase-in of the Bridge to Excellence formulas will be complete.� Despite the difficult budget situation, in each of the last three years, the integrity of the formula and the original phase-in structure have been preserved, sometimes at the expense of other worthy initiatives in the State budget.

 

Johns Hopkins also advocated for expanded training for prospective principals and teachers and supported efforts to enhance summer learning for students.� We opposed efforts to unnecessarily burden teaching certification by mandating additional training requirements on fetal alcohol spectrum disorders.�

 

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Higher Education

The Maryland General Assembly considered a number of measures related to higher education.� Legislation addressed scholarships, as well as administrative matters, coursework, and issues related to tuition and funding.� Other bills addressed adult literacy, primary and secondary educational concerns, teachers and principals, and the health and safety of students.

 

A number of bills were introduced that would have negatively impacted Johns Hopkins.� One bill required a nonpublic institution of higher education to enter into an agreement with residents who live within one mile of the institution’s campus to establish a community-relations council and a community agreement as a prerequisite to receiving State capital funding.� A community agreement would have included: (1) negotiated student enrollment caps; (2) protocols for community participation in the development and implementation of the institution’s master plan; (3) an inventory of the institution’s leased and owned property; (4) disclosure of any proposed acquisitions by the institution; (5) disclosure of any proposed capital projects with associated parking and traffic projections; (6) off-campus housing restrictions; (7) off-campus parking restrictions in neighborhoods surrounding the institution’s campus; and (8) protocols for construction projects, commercial deliveries, and sanitation service.� The sponsor withdrew the bill.�

 

Legislation that imposed curriculum requirements for foreign language courses failed.� Lastly, in the final hours of session, legislation that created a commission on the future funding of higher education also failed.� The legislation had the President of Johns Hopkins serving on a task force whose responsibilities were to make recommendations on the establishment of a consistent and stable funding mechanism for higher education, including private higher education.

 

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Sellinger Aid

Every segment of higher education received a general fund increase in the FY 2006 budget.� New general funds for higher education total $66.3 million.� The chart below demonstrates the general funds for Maryland Institutions of higher education.�

 

Each year, Johns Hopkins, along with other independent colleges and universities, receives operating funds through the Joseph A. Sellinger Aid Program.� The budget committee conferees decided on an appropriation of $45.8 million for FY 2006 for the Sellinger Aid Program.� This is a 29% increase over the FY 2005 appropriation.� The FY 2006 Sellinger grant per student is $1,206.� For Johns Hopkins University, the FY 2006 appropriation is $18.9 million, which is a $4.3 million (23%) increase over FY 2005.

 

The budget conferees restored $9.6 million of the $10.1 million cut by the Ehrlich Administration in the Budget Reconciliation Act.� The FY 2006 appropriation is only $500,000 less than the full statutory formula.�

 

Legislation was introduced to reformulate the Sellinger Aid Program based on the number of in-State students that an institution enrolls.� This bill was withdrawn by its sponsor.� However, language was added to the BRFA stating that it is the intent of the General Assembly to use the most accurate full-time equivalent enrollment figures in calculating the State general funds per full-time equivalent student for determining State aid under the Senator John A. Cade Funding Formula, the Sellinger Aid Program, and the Baltimore City Community College Funding Formula. The Maryland Higher Education Commission (MHEC) is required to study the accuracy of the enrollment figures used presently and any alternatives that would improve accuracy.� The recommendations are to be reported to the Senate Budget and Taxation Committee, the House Appropriations Committee, and the Ways and Means Committee by October 1, 2005.

 

General Funds for Maryland Institutions of Higher Education

Fiscal Years 2002, 2005, and 2006

($ in Thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ Change

% Change

 

FY 2002

FY 2005

FY 2006

FY 05 - 06

F 05 - 06

University System of Maryland

$864,765

$757,698

$799,748

$42,051

5.5%

Morgan State University

52,035

48,860

51,321

2,461

5.0%

St. Mary's College

14,722

13,978

14,593

615

4.4%

MHEC Special Grants

7,376

14,917

15,222

904

6.3%

Community Colleges

178,546

183,990

191,605

7,615

4.1%

Balt. City Community College

29,740

30,425

32,814

2,389

7.9%

Sellinger/Private Institutions

45,974

35,514

45,830

10,316

29.0%

Total Increase

 

 

 

$66,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: DLS/MGA 90 day report

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Listed below are the bills that passed during the 2005 Maryland Legislative Session:

 

General Education

 

HB0929� Education - Baltimore City Public Schools – Facilities�

This Act repeals the requirement that the Mayor and City Council of Baltimore transfer the real property assets of the Baltimore City Public School System to the Baltimore City Board of School Commissioners. Under current law, county boards of education must hold title to public school buildings. When the school system was separated from the city government in the Baltimore City-State Partnership legislation (Chapter 105 of 1997), a schedule for transferring assets from the city government to the school system was established, which was extended for real property assets in 2002 legislation. Prior to 1997, the school system was a department of city government and all assets of the school system belonged to the City of Baltimore.� The Act allows title to public school real property in Baltimore City to remain with the Mayor and City Council permanently.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Bret Schreiber

 

HB0995� Education - Principals - Fellowship and Leadership Development Program

The statute expands the success of a PILOT program, Chapter 545, which was passed in 2002.� Chapter 545 required Maryland State Department of Education (MSDE) and the Baltimore City Public School System to collaborate to establish a Distinguished Principal Fellowship Program for the city school system.� According to MSDE, the program has increased student achievement, student attendance, teacher retention, and parent involvement at schools that have participated in the program.

 

Based on the success of the PILOT Baltimore City program, this statute will establish a statewide Principal Fellowship and Leadership Development Program.� It authorizes the State Superintendent of Schools to select up to 10 principals per year to become fellows in the program. The principals must agree to be transferred from their local school systems for three years to schools identified for restructuring under the State’s accountability regulations. With the approval of the State Superintendent of Schools and the local Superintendent of Schools in the school system in which the fellow has been placed, the fellow may select assistant principals from qualified employees in the school system receiving the principal. Prior to the third year of the fellow’s participation in the program, the fellow must select one of the assistant principals to assume leadership of the school after the fellow’s departure.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #408.

 

For more information, please contact:� Bret Schreiber

 

HB1491� State Department of Education - Early Learning and Child Care Programs

The statute requires the MSDE� to develop a plan to accredit certain early learning programs and child care programs that are planning to provide or are providing all-day kindergarten or prekindergarten programs to counties.� The MSDE must submit the plan to the Joint Committee on Children, Youth, and Families on or before December 31, 2005.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #436.

 

For more information, please contact:� Bret Schreiber

 

SB0266� Quality Teacher Incentive Act - Increasing Participation�

The Act increases from 500 to 750 the maximum number of teachers that the State Board of Education may select each year to pursue national certification under the State and Local Aid Program for Certification by the National Board for Professional Teaching Standards.� It will ensure that high quality teachers who adhere to national best practice standards are working in schools throughout the State.� The State has encouraged teachers to pursue certification by the National Board for Professional Teaching Standards (NBPTS). NBPTS is an independent, nonprofit, nonpartisan organization with a mission “to establish high and rigorous standards for what accomplished teachers should know and be able to do.” There are approximately 500 nationally certified classroom teachers working in Maryland now, due in part to the State’s commitment to NBPTS incentive programs.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #293.

 

For more information, please contact:� Bret Schreiber

 

sb0384� Adult Education and Literacy Services - Waiting List – Funding�

The Act requires the Governor to include in the FY 2007 and FY 2008 State budgets an appropriation for adult education equal to an increase of $1.5 million over the FY 2005 appropriation. The Maryland State Department of Education (MSDE) must distribute the funding as Literacy Works Grants in order to reduce the waiting list for adult education and literacy services. It also requires MSDE, in consultation with the General Assembly, to establish an ongoing method of funding for adult education and literacy services so that the waiting list for these programs is reduced.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #305.

 

For more information, please contact:� Bret Schreiber

 

 

Higher Education

 

SB0360 Higher Education Institutions - Blind Individuals - Access to Technology�

This Act pertains to State procurement laws.� Regarding blind access to technology under the general State procurement law and the State Information Technology Plan, a nonvisual access clause must be included in procurements related to the purchase of new or upgraded information technology and services.� However, the clause does not have to be included if the technology is not available with nonvisual access because the essential elements of the technology are visual, or the cost of modifying the technology for nonvisual access increases the price by more than 5 percent.� Additionally, public institutions of higher education are exempt from the State procurement laws but are required to develop policies and procedures that are compatible with the State Information Technology Plan and consistent with the purposes of the State procurement laws.�

 

The Act will enhance access to technology at higher education institutions for blind individuals by requiring the governing board of each public institution of higher education to develop a nonvisual access clause for use in the procurement of computer-based instructional technology by January 1, 2007. The clause must be consistent with the standards developed by the Department of Budget and Management for State agencies.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #304.

 

For more information, please contact:� Bret Schreiber

 

 

HB0228� Higher Education - Community Colleges and Regional Higher Education Centers - Degree Programs�

The Act establishes a process for a regional higher education center or a community college to offer a baccalaureate degree program sponsored by an in-State or out-of-State four-year institution of higher education.� MHEC must adopt regulations to implement these provisions.� Specifically, the Act authorizes a regional higher education center or a community college board of trustees to submit to MHEC a request for proposals (RFP) to offer a baccalaureate degree program not offered in the region. Before submitting the RFP, the center or board must: 1) seek input from students and interested community groups about the program; 2) determine the regional or Statewide need for graduates of the program; 3) identify enrollment patterns, characteristics of students, and other unique circumstances that would require the program to be offered in a particular manner; and 4) determine that the program is necessary to meet the academic and economic development needs of the region or State. MHEC must distribute the RFP to public and private four-year institutions of higher education.� If an in-State institution does not respond to the RFP, the regional higher education center or board of trustees may submit the request to an out-of-State four-year institution of higher education. Before offering the program, an out-of-State institution’s program must be approved by MHEC.

 

Effective Date:� October 1, 2005

Signed by the Governor on April 12, 2005; Chapter #42

 

For more information, please contact:� Bret Schreiber

 

 

HB0597 �Higher Education - Regional Centers - Approval to Operate in Maryland�

The statute will centralize approval for the operation of regional higher education centers throughout Maryland. Currently there are seven regional higher education centers in the State serving more than 6,000 students and offering more than 120 different academic programs, including two operated by University System of Maryland (USM) and five centers managed independently by two- and four-year public and private institutions. An October 2004 report issued by an MHEC workgroup in response to the 2004 Joint Chairmen’s Report recommended that changes be made to State law to require MHEC to approve regional higher education centers. This statute, which has already been signed into law as Chapter 59, codifies the recommendations of the Task Force and requires a regional higher education center to either be approved by MHEC or established in statute. In addition, each institution of higher education partnering in a regional higher education center must be approved to operate in the State by either MHEC or an act of the General Assembly.� Further, it requires MHEC to ensure that each regional higher education center provides access to affordable higher education programs in an underserved area and responds to the needs of the area it serves.

 

Effective Date:� July 1, 2005

Signed by the Governor on April 12, 2005; Chapter #59

 

For more information, please contact:� Bret Schreiber

 

 

HB1235� Higher Education - Scholarships - Speech Language Pathologists and Audiologists�

The Act authorizes the State Board of Education to designate audiology and speech-language pathology as areas of critical shortage under the Sharon Christa McAuliffe Memorial Teacher Education Award program. It provides that the service obligation associated with a scholarship award may be fulfilled by providing audiology and speech-language services in a public school for one year for each year that the scholarship is received.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #422.

 

For more information, please contact:� Bret Schreiber

 

 

HB1236� Community College Students with Disabilities Task Force

The Chapter creates a Task Force to identify strategies to improve educational and employment outcomes for community college students with disabilities.� The Task Force will also develop recommendations to enable community colleges to acquire resources to serve students with disabilities.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #423.

 

For more information, please contact:� Bret Schreiber

 

 

HB1283� Public Records - Trade Secrets and Confidential Information - Public Institutions of Higher Education

The Act authorizes the custodian of a public record at a public institution of higher education and its governing boards to deny inspection of the part of the record that contains information that discloses a trade secret, confidential commercial information, or confidential financial information that is owned by that public institution of higher education if that information is part of an arrangement between the institution and the private sector.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Bret Schreiber

 

 

HB1304� Student Financial Assistance Reform Act of 2005�

This Act establishes the Student Financial Assistance Reform Act of 2005, which proposes a number of enhancements to State scholarship programs. Of specific interest to Johns Hopkins are the following:�

 

Distinguished Scholar Program for Community College Students: In order to provide incentives for promising community college students to continue on to four-year institutions, the Act establishes a Distinguished Scholar Program for community college transfer students. Each year MHEC is directed to select community college students from across the State who have the greatest potential for success in higher education and offer them scholarships to four-year institutions of higher education.� A $3,000 award is available for a student who: (1) has at least a 3.0 grade point average at the community college; (2) has completed at least 60 credit hours or an associate’s degree program at a Maryland community college; (3) qualifies as a Maryland resident; (4) uses the scholarship within one year of completing the community college credit or degree requirement; and (5) attends the four-year institution as a full-time student. The award may be used to pay for tuition and mandatory fees, room and board, and books and supplies and is independent of any other State scholarships available to the student.

 

Nursing Scholarships: To help address the current statewide nursing shortage, the Act will expand eligibility for State nursing scholarships in order to allow qualifying students who enroll in out-of-State institutions of higher education, due to lack of capacity in the programs in the State, to receive awards. In addition, it alters the service obligation requirement to allow a recipient to work for two years as a half-time nurse to fulfill the obligation (rather than work as a full-time nurse for one year for each year the recipient received the award) or to work as a faculty member in a nursing program at an eligible institution to meet the service obligation.� The latter is designed to help address the nursing faculty shortage.

 

Workgroup to Study the Consolidation of Higher Education Grants: The Economic Development Student Assistance Grants Program was established to assist students who pledge to work in fields of geographic or critical shortage in the State. Over the years, these programs have grown complex and tend to overlap one another.� The Act requires MHEC to establish a workgroup to study the possibility of consolidating the Economic Development Student Assistance Grants and Work-Based Shortage Grants into a single grant program. The goal is to establish uniform criteria for grant eligibility, award amounts, and service obligation requirements. The workgroup must also develop a methodology for prioritizing the grants on an annual basis.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #429.

 

For more information, please contact:� Bret Schreiber

 

 

hb1373� Sharon Christa McAuliffe Memorial Teacher Education Award - Qualification Requirements�

This Chapter requires the State Board of Education to establish eligibility criteria targeted to teaching applicants who earned an undergraduate degree prior to 1986. Under this Chapter, consideration of the grade point average of pre-1986 graduates is prohibited.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #434.

 

For more information, please contact:� Bret Schreiber

 

 

SB0901� Property Tax Exemption - Property Used for Student Housing�

This Act exempts from State and local property tax property that is leased from the State and used to provide housing to students of public higher education institutions.� The Act is limited to public/private partnerships on State-owned land.� It permits for-profit entities to enter into agreements to construct and manage student housing for the University System of Maryland (USM).� The Act does not cover housing constructed on land not owned by the State.� It is expected to help meet the large anticipated enrollment in Maryland’s public higher education institutions.

 

Effective Date:� June 1, 2005

 

For more information, please contact:� Bret Schreiber

 

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HEALTH

 

General Health Care

 

This year the General Assembly passed legislation to protect the health and safety of children.� First, HB 254 improved access to information pertaining to abuse and neglect for health care professionals in charge of making discharge decisions for children.� Second, in order to develop programs and policies for the reduction of violence against children, HB 900 required the Department of Juvenile Services (DJS) and the Department of Human Resources (DHR) to disclose relevant confidential records regarding a child in the jurisdiction of a local health department upon the health department's request.

 

Other bills that passed included SB 690, which brought Maryland's requirements for disclosure of medical records without the authorization of the person in question into closer alignment with federal HIPAA standards.� HB 1323 and HB 1494 established task forces to study the impact and treatment of Lyme Disease, and to study the general group of autoimmune diseases, respectively.� HB 579 established a pilot program to study and improve screening practices for autism spectrum disorders.

 

HB 742, a bill that would have mandated parental notice of a minor requesting an abortion, was defeated.

 

Listed below are the bills that passed during the 2005 Maryland Legislative Session:

 

 

SB0834� Pilot Program to Study and Improve Screening Practices for Autism Spectrum Disorders�

The Act establishes a pilot program to study and improve screening practices for autism spectrum disorders in the MSDE.� The purpose of the pilot program is to assess screening practices used in pediatric health care settings, to implement screening practices at well visits for 12- and 36-month-olds in two jurisdictions in the State, and to train health care providers in early detection.� In collaboration with DHMH, MSDE is to select and establish relationships with providers to participate in the pilot program; train health care providers in early detection; identify, refer and provide services for at risk 12- and 36-month-olds; facilitate access to health care and early intervention services for parents seeking an early diagnosis; and requires MSDE to improve and expedite of Maryland Infants and Toddlers Program services to qualified children.� SB 834/HB 579 also requires MSDE, in collaboration with DHMH and Kennedy Krieger’s Center for Autism and Related Disorders, train participating providers on screening practices and on information and resource referral practices.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #340.

 

For more information, please contact:� Sheila Hidgon

 

 

HB0254� Department of Human Resources - Disclosure of Information - Hospitals and Birthing Centers

When the medical or human resources personnel of a hospital or birthing center have reasonable and articulable concerns about the safety of a child after discharge, the Chapter authorizes the disclosure of records and reports concerning child abuse or neglect for the purpose of making discharge decisions for that child.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #279.

 

For more information, please contact:� Heather Barthel

 

 

SB0395 State Traumatic Brain Injury Advisory Board

This Act establishes the State Traumatic Brain Advisory Board.� The Board is composed of 36 members, one member from the House and the Senate; various divisions within the Department of Health and Mental Hygiene, the State Department of Education; one representative of the Maryland Institute of Emergency Medical Services Systems; the Brain Injury Association of Maryland; the Maryland Statewide Independent Living Council; the Maryland Disability Law Center; National Institutes of Health; one representative of State or local law enforcement; six Maryland citizens who have experienced a traumatic brain injury; five Maryland citizens who are currently caring for, or are family members of, individuals who have experienced a traumatic brain injury; and four professionals with specialized experience in providing services to individuals with traumatic brain injuries or traumatic brain injury prevention activities.

 

The Advisory Board shall investigate the needs of citizens with traumatic brain injuries; identify gaps in services to citizens with such injuries; facilitate collaboration among State agencies that provide services to these individuals; facilitate collaboration among organizations and entities that provide services to individuals with traumatic brain injuries; and encourage and facilitate community participation in program implementation.� The Advisory Board will issue an annual report to the Governor and the General Assembly on or before November 30, 2005, and each November 30 thereafter, summarizing its actions and containing recommendations for providing oversight in acquiring and utilizing State and federal funding dedicated to services for individuals with traumatic brain injuries, building provider-capacity and provider-training that address the needs of individuals with traumatic brain injuries, and improving the coordination of services for individuals with traumatic brain injuries.� A copy of the report will go to the Secretary of each department represented on the Advisory Board.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #306.

 

For more information, please contact:� Heather Barthel

 

HB0417� Health Insurance - Pharmacies - Electronic Reimbursement

The Act applies '15-131 of the Insurance Article to HMOs.� This Act states that any plan that provides coverage for prescription drugs, directly or indirectly, and requires the pharmacy to submit a request for payment electronically, must also reimburse such pharmacies electronically upon the pharmacies’ request.� The carrier may not impose a processing fee for the electronic reimbursement.

 

Effective Date:� October 1, 2006

Signed by the Governor on 5/10/05; Chapter #372.

 

For more information, please contact:� Jim Kaufman

 

 

HB0458 Health Insurance - Coverage for Psychological and Neuropsychological Testing
The Act modifies Maryland's mental health mandated benefit to specify that mental health coverage is not discriminatory as long as outpatient coverage includes psychological and neuropsychological testing for diagnostic purposes.� The Act applies to policies and contracts issued or renewed after October 1, 2005.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #375.

 

For more information, please contact:� Jim Kaufman

 

 

HB0627� Community Health Care Access and Safety Net Act of 2005

The bill attempts to improve access to health care services by providing operating and capital grants to community health resources (CHR).� CHRs include federally qualified health centers, community health centers, teaching clinics, a historic Maryland primary care provider, and other centers or programs the new Maryland Community Health Resources Commission (CHRC) identifies through regulation.� Several provisions of the Act� are summarized below.

 

Commission

Establishes an 11 member CHRC as an independent commission within DHMH to increase access to health care for lower-income individuals and provide resources to community health resource centers around the State.� The Commission is charged with a number of responsibilities aimed at strengthening the availability of the CHRs, including: 1) developing criteria for awarding operating grants; 2) establishing criteria for the services CHRs are to provide; and 3) studying initiatives to assist the under- and uninsured in accessing health care services through CHRs.

 

To facilitate its work, there are four standing committees: the Committee on Capital and Operational Funding; the Committee on Hospital and Community Health Resources Relations; the Committee on School-Based Community Health Center Expansion; and the Committee on Data Information Services.

 

In addition to including a very broad array of community health resources eligible for operating grants, funding preferences are provided for initiatives where CHRs partner with hospitals to divert unnecessary hospital emergency department visits by the under- and uninsured.

 

Funding Initiatives

Funding for the following initiatives (approximately $22 million) is provided by CareFirst from the portion of the CareFirst premium tax exemption that will no longer be needed to support the Senior Prescription Drug Program once the Medicare Part D program becomes operational.

 

1) Operating grants for CHRs;

2) Expansion of the Maryland Discount Program to 200% of Federal Proverty Level (FPL); and

3) Assistance in the development of a uniform data information system for CHRs.

 

Capital Program

In addition to the operating grants, the Administration's capital grant program for federally qualified health centers is included in the enrolled bill.� For FY 2006 the Governor included $2.1 million in the capital budget for capital grants to seven federally qualified health centers.� No amount is specified for future year funding.

 

Senior Prescription Drug Assistance Program

Incorporates the provisions of HB 324 to recognize and accommodate the changes under the federal Medicare Part D Program. Medicare Part D beneficiaries with household incomes below 300% of the FPL will now be eligible for State subsidies to cover their cost-sharing requirements under Part D up to the "doughnut hole."

 

Hospital Financial Assistance Policies

Each hospital in the State must develop a financial assistance policy for providing free and reduced care to low-income patients who lack health care coverage.� The HSCRC is required to develop a uniform financial assistance application for use by hospitals.� The HSCRC is also required to report by July 1, 2006 on hospital policies for the collection of debts owed by patients who qualify for reduced-cost care under the financial assistance policy.�

 

Medicaid Eligibility System

Incorporates the provisions of SB 895 (see below) to transfer up to $15 million in Maryland Health Insurance Program (MHIP) surplus to DHMH for the design and development of computerized eligibility system for the Medicaid program.

 

Task Force

Establishes a Joint Legislative Task Force on Universal Access to Quality and Affordable Health Care, with a report due December 31, 2005.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #280.

 

For more information, please contact:� Jim Kaufman

 

HB0900� Children - Records - Access by the Baltimore City Health Department

DJS and DHR must disclose confidential records regarding children under their jurisdiction upon the request of a local health department. The disclosure must concern a child under treatment or care by the local health department, and the disclosure must be for a related purpose.� If the requested disclosure concerns a child victim of violence, the purpose of the disclosure must be the development of appropriate programs and policies intended to reduce violence against children.

 

The bill provides that a local health department may review a confidential report of a Child in Need of Assistance (CINA), the police record, court record, or fingerprint record of a child if the local health department is providing treatment or care to a child and the disclosure is related to that purpose.� If the court record concerns a child victim of a violent crime, the disclosure must be for the purpose of developing appropriate programs and policies to reduce violence against children.

 

Department of Public Safety and Correctional Services (DPSCS) is required to provide to a local health department, upon request, information concerning a child victim of a violent crime.� The local health department must keep any information provided by DPSCS confidential and may only use the information to develop programs and policies to reduce violence against children.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Heather Barthel

 

 

hb1143� Maryland Pharmacy Discount Program - State Discount – Eligibility

This Chapter alters the eligibility criteria for the Maryland Pharmacy Discount Program to include individuals who are not Medicare beneficiaries, who lack other public or private prescription drug coverage, and who have an annual household income below 200% of the FPL. It is contingent upon a waiver approval from the Centers for Medicare and Medicaid Services.

 

Effective Date:� June 1, 2005

Signed by the Governor on 5/10/05; Chapter #418.

 

For more information, please contact:� Jim Kaufman

 

HB1263� Maryland Medbank Program – Study

The Act requires DHMH and the MedBank Program to study the effects of participation in MedBank along with the implementation of the new Medicare Part D prescription drug benefit, the availability of the Maryland Pharmacy Discount Program to uninsured individuals with an annual income below 200% of the FPL, and MedBank’s efforts to minimize administrative expenses and reduce reliance on public funds.� The report is due before September 1, 2005.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #425.

 

For more information, please contact:� Jim Kaufman

 

 

HB1323� Task Force to Study Lyme Disease
The statute establishes a task force to study the prevalence of lyme disease and associated tick-borne illnesses, including identifying the areas of the State where reports of Lyme Disease are most prevalent.� The task force is required to report its findings and recommendations on issues regarding prevention, diagnosis, and treatment of Lyme Disease to the General Assembly by July 1, 2006.� The Secretary of DHMH must appoint the members of the task force and designate the chair.� DHMH is also required to staff the task force.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Sheila Higdon

 

HB1494� Task Force to Study the Impact of Autoimmune Disease in Maryland

This Chapter establishes a task force to study the impact of autoimmune disease in Maryland. The task force is to study issues such as costs, research, services and service gaps, training needs, and public awareness campaigns.� The task force is to report its findings and recommendations to the Governor and General Assembly on or before December 1 of each year.� This statue will sunset on December 31, 2006.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #437.

 

For more information, please contact:� Sheila Higdon

 

 

SB0247� Health Care Decision Making Forms - Health Insurance Portability and Accountability Act - Personal Representatives

This chapter clarifies that in accordance with the federal Health Insurance and Portability and Accountabillity Act (HIPAA), a health care agent is a personal representative and is entitled to request and receive protected health information.� The Chapter also amends the existing Health Care Decision Making Form, Living Will, and Advance Medical Directive Health Care Instructions forms to be in accordance with HIPAA.

 

Effective Date:� October 1, 2005

Signed by the Governor on 4/26/05; Chapter #137.

 

For more information, please contact:� Jim Kaufman

 

 

SB0251� Task Force to Study Electronic Health Records

The Act establishes a Task Force to Study Electronic Health Records and consists of 26 members, including:

1) one member of the Senate,

2) one member of the House,

3) Dean of the University of Maryland School of Medicine, or designee

4) Dean of the Johns Hopkins University School of Medicine, or designee

5) Director of the VA Maryland Health Care System, or designee, and

6) One representative from each of the following appointed by the Governor:

�         Department of Health and Mental Hygiene

�         Department of Budget Management

�         Federally Qualified Health Center

�         Medical Records Privacy Commission

�         Maryland/DC Collaborative for Healthcare Information Technology

�         Maryland Hospital Association (two representatives, both from community hospitals)

�         Home health care

�         Medical laboratory

�         Nursing home or long-term care (two representatives)

�         Information technology field as it relates to health care

�         Health insurance industry

�         One non-hospital based physician with expertise in the subject matter

�         Non-hospital based psychiatrist

�         Dentist

�         Nurse

�         Pharmacist, and

�         Consumer members (two)

 

The members of the task force will elect a Chair from its membership and DHMH will provide staff.� The task force will be charged with studying electronic health records and the current and potential expansion of electronic health record utilization in the State, including:

1) electronic transfer

2) electronic prescribing

3) computerized physician order entry, and

4) the cost of implementation of items 1 through 3

5) the impact of current and potential expansion on school health records, and

6) the impact of the current and potential expansion of patient safety.

 

The task force will report its findings to the Governor and General Assembly by December 31, 2007, at which time the statute sunsets.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #291.

 

For more information, please contact:� Sheila Higdon

 

 

SB0441� Task Force on the Establishment of a Prescription Drug Repository Program

The Act establishes a Task Force on a Prescription Drug Repository Program.� It is charged with studying and making recommendations regarding the establishment of a Prescription Drug Repository Program in the State including:

����������� • types of drugs that may and may not be donated to the program

����������� • who may donate drugs to the program

����������� • entities that may receive drugs for distribution

����������� • standards and procedures for accepting, storing and dispensing donated drugs

����������� • eligibility requirements for individuals wishing to receive donated drugs

����������� • standards and procedures for inspecting donated drugs

����������� • the appropriate entity to operate the program

����������� • liability issues

����������� • fees, and

����������� • any other matter relating to the establishment of the program

 

The task force report and recommendations are due for submission to the Governor and General Assembly by January 1, 2006.� Membership will include two Senators and two Delegates, in addition to one representative each from the Maryland Health Insurance Plan, State Board of Pharmacy, Maryland Medical Assistance Program, Office of Health Care Quality, and two additional members of the Department of Health and Mental Hygiene.� The Governor will appoint one representative from each of the following organizations: 1) American Cancer Society, 2) hospital, 3) nursing home, 4) community health center, 5) pharmacy, 6) Medbank, 7) pharmaceutical industry, and 8) University of Maryland School of Pharmacy.� DHMH will staff the task force.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #310.

 

For more information, please contact:� Sheila Hidgon

 

 

sb0690� Medical Records - Authorized Disclosures - Compulsory Process

The Act primarily alters the requirements for disclosing a medical record without the authorization of the person in interest.� A medical record must be disclosed by a health care provider if the provider receives a written assurance from the the attorney representing the party seeking the medical record that there is no objection to the disclosure and 30 days have passed since the notice was sent, or the objections were resolved and the disclosure request is in accordance with the resolution.� They must also provide proof that service of the subpoena, summons, warrant, or court order was waived by the court for good cause or that copies of specified documents were sent to the person whose medical records are being sought.

 

Effective Date:� July 1, 2005

 

For more information, please contact:� Sheila Higdon

 

 

SB0796� Medical Decision Making Act of 2005

According to this Act, a life partnership may be created between two individuals if: (1) each individual is at least 18 years old; (2) the individuals are not related to one other by blood or marriage within four degrees of consanguinity; (3) the individuals are of the same sex, or opposite sex and at least 62 years old; (4) neither individual is married or a member of a civil union or domestic partnership with another individual; (5) the individuals agree to be in a relationship of mutual interdependence; (6) the individuals share a common residence; and (7) the individuals agree to register with the Secretary of DHMH.

 

DHMH must develop and distribute a Declaration of Life Partnership and a Notice of Termination of Life Partnership forms. The forms must be distributed to each county clerk and made available at DHMH on its web site and at local health departments. Each county clerk must make the forms available on the county clerk’s web site.�

 

DHMH must set a reasonable fee, based on the costs of processing the forms, to file a Declaration of Life Partnership form. To apply for the Declaration of Life Partnership form, two individuals must sign the form before a notary public. Once the form is submitted to DHMH, DHMH must register the form and return a copy to the life partners at the address provided. DHMH must keep a certificate of life partnership book, which contains a complete record of each registration, properly indexed, and the date each registration was recorded.

 

An individual who has previously registered a life partnership may not register a new life partnership until 90 days after the date that a notice of termination of life partnership was recorded by DHMH. The form must include reference to the information sheet on advance directives.

 

The rights and obligations of a life partner are only those described in the Act. The establishment of a life partnership registry in Maryland may not be construed to recognize, condone, or prohibit a domestic partnership, civil union, or marriage between two individuals of the same sex entered into in another State or jurisdiction.

 

Medical Emergencies: A hospital, related institution, or residential treatment center must allow a patient’s life partner and other specified relatives to visit the patient unless no visitors are allowed, the facility reasonably determines that the presence of a particular visitor would endanger the health or safety of the patient or member of the facility staff, or the patient tells the facility staff that the patient does not want a particular person to visit.

 

In the case of a medical emergency, two adults must be treated as life partners if one of the adults, in good faith, tells the emergency medical provider or hospital personnel that the adults are in a mutually interdependent relationship for the following purposes only: (1) allowing one adult to accompany the ill or injured adult being transported to a hospital in an emergency vehicle; and (2) visitation with the ill or injured adult admitted to a hospital on an emergency basis.

 

Disinterment, Reinterment, or Burial: DHMH may not deny inspection of a disinterment or reinterment permit record to a life partner of the deceased whose human remains have been disinterred or reinterred. A life partner may give consent for a postmortem examination of the decedent.� A life partner of the decedent has the right to arrange for the final disposition of the body and is considered a “person of interest” for the purposes of determining a burial site.

 

Health Care Decisions: The following individuals or groups, in the specified order of priority, may make decisions about health care for a person who has been certified to be incapable of making an informed decision and who has not appointed a health care agent: (1) the patient’s guardian, if one has been appointed; (2) the patient’s spouse or life partner; (3) an adult child of the patient; (4) a parent of the patient; (5) an adult brother or sister of the patient; or (6) a friend or other relative of the patient.

 

An individual may not be transported by ambulance between facilities unless accompanied by specified attendants or a specified family member, including the domestic partner.� A life partner may petition the circuit court to enjoin the provision or withholding of medical treatment to the patient upon a finding by a preponderance of the evidence that the action is not lawfully authorized by State or federal law.

 

When an individual dies in a hospital, a representative of an organ recovery agency must request, with sensitivity, that the individual’s representative consent to the donation of all or any of the decedent’s organs, if suitable. The decedent’s representatives are, in the following order of priority: (1) a spouse or life partner; (2) an adult son or daughter; (3) a parent; (4) an adult brother or sister; (5) a guardian; (6) a friend or other relative; or (7) any other person authorized or required to dispose of the body. A life partner is considered “next of kin” for the purposes of making an anatomical gift.

 

Nursing Homes: If feasible, spouses or life partners who are both residents must be given the opportunity to share a room. Each resident who is party to a life partnership must have privacy during a visit by the other life partner. A life partner of a resident may file a complaint about an alleged violation of these provisions.

 

Penalties: A life partnership is not established and an individual may not claim the benefits of a life partnership unless the individual has been issued a certificate of life partnership by DHMH. An individual who violates this provision is guilty of a misdemeanor and subject to a fine of $100.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Heather Barthel

 

 

SB0885� Maintenance Drug Prescriptions - Mail Order Purchase – Study

The Chapter requires the Maryland Insurance Administration and the Maryland Health Care Commission, in consultation with the Board of Pharmacy, to study the utilization of mail order services for purchasing a 90-day supply of maintenance drugs, the potential cost savings to consumers who elect to use mail order services, and the financial impact of any increased utilization of mail order services.� The report is due before December 31, 2005.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #342.

 

For more information, please contact:� Jim Kaufman

 

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Health Care Facilities

 

From the start of the legislative session, health care facilities were bracing for legislation aimed at additional regulatory constraints, particularly in light of the lab debacle at Maryland General Hospital. Although multiple bills were introduced, few passed, and those that did were tolerable.� A bill that would have allowed lab employees to bypass their employer and report problems directly to the DHMH or another accrediting agency did not survive the session, nor did a bill that would have strengthened DHMH’s authority relative to hospital licensure and accrediting agencies deeming status.� DHMH’s bill to create an Office of the Inspector General to focus on health care fraud and abuse also died.

 

National efforts to require the reporting of hospital acquired infections reached members of the Maryland General Assembly, several of whom introduced bills on this issue.� The House bill, which was acceptable and consistent with the planned reporting through the Maryland Health Care Commission, passed its chamber.� Its Senate companion bill was never voted on in committee, and consequently the House bill met a similar fate in the Senate.���

 

Legislation was also introduced that would have imposed unrealistic expectations on hospitals that provide delegated credentialing for their practitioners. The bill met considerable opposition and was killed in committee.

 

Listed below are the bills that passed during the 2005 Maryland Legislative Session:

 

 

Hb0345� Health - Hospital Summary Financial Statement - Physician Charges

This Act requires hospitals to include on their summary financial statement an accounting of �charges for services provided by a physician that are not included in the total hospital charges and are billed separately.

 

Effective Date:� October 1, 2005

Signed by the Governor on 4/26/05; Chapter #204.

 

For more information, please contact:� Sheila Higdon

 

 

HB0426� Freestanding Medical Facilities - Licensing and Pilot Project

The Chapter provides that a separate satellite emergency department location of an acute care general hospital may be established without a certificate of need if: 1) the satellite emergency department location is established by, and will operate administratively as part of, an acute care general hospital; 2) the acute care general hospital is part of a merged asset system with all of its existing Maryland acute care general hospitals located in a single jurisdiction; 3) the satellite emergency department location will operate in the same jurisdiction; 4) one or more of the existing acute care general hospitals in the merged asset system has an emergency department volume of 75,000 or more visits for the 12 months ending June 30, 2004; 5) there are not more than five acute care general hospitals in the jurisdiction; and 6) the capital expenditure to implement the satellite emergency department location otherwise meets the requirements of the subsection.

 

The Chapter also amends the definition of “Hospital services” under �19-201 of the Health – General article to include emergency department services provided at a satellite location established by an acute care general hospital, which for rate-setting purposes shall be considered part of that hospital.� It also amends the definition of “Hospital” to include a satellite location, operated by an acute care general hospital, at which emergency department services are provided, separate from the location at which overnight care is rendered.

 

Effective Date:� June 1, 2005

 

For more information, please contact:� Heather Barthel

 

 

HB0565� Hospitals - Bone Marrow Donation

This Act amends current law by adding a provision that requires hospitals that offer bone marrow transplant services to allow an individual to donate bone marrow to any individual.� It also stipulates that an individual may donate bone marrow to another individual if a licensed physician determines, based on medical judgment, that the donation of the bone marrow is in the best interest of the donee and there is no substantial risk of medical injury to the donor.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #382.

 

For more information, please contact:� Sheila Higdon

 

 

HB0928� Howard County - Health Facilities - Notification of County Health Officer and County Council Ho. Co. 4-05

The statute requires DHMH to notify the Howard County Health Officer when an application for licensure or certification for a health facility or program that will serve 16 or more individuals is received.� In turn, the County Health Officer is required to notify the County Council.

 

Effective Date:� October 1, 2005

Signed by the Governor on April 12, 2005; Chapter #81

 

For more information, please contact:� Sheila Higdon

 

 

Sb0210� Department of Health and Mental Hygiene - Federally Qualified Health Centers Grant Program

The Act establishes the Federally Qualified Health Center (FQHC) grant program within the DHMH.� The program will provide grants for the conversion of public buildings, acquisition of existing buildings, renovations, or capital equipping of FQHCs.�

 

The grant application requires identifying the work to be carried out by the grant, a statement listing the personnel employed at the FQHC including remuneration, and a schedule of rates to be charged for services rendered at the facility.� In addition, any federal funds or other grants must be expended first, and the State grant may not exceed 50% of the total project costs, excluding the federal grants.� Language was also added requiring the Governor beginning in FY 2007 and each year thereafter to include an appropriation in the capital budget to support this program.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #277.

 

For more information, please contact:� Jim Kaufman

 

 

SB0269� Health - Maryland Health Care Commission – Membership

This Act increases the number of individuals on the Maryland Health Care Commission from 13 to 15, stipulating the following regarding the membership of the Commission: 1) nine shall be individuals with no connection with the management or policy of a health care provider or payor, and 2) the six remaining members shall be: two physicians, two payors, one nursing home administrator, and one nonphysician health care practitioner.

 

In addition, the Governor shall assure that at least five members are residents of different counties with a population of 300,000 or more, and at least three of the members shall be residents of different counties with populations of less than 300,000.� Of these three, at least one shall be a resident of the Eastern Shore; one from Allegany, Garrett, Washington, Carroll, or Frederick County; and one from Southern Maryland.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #294.

 

For more information, please contact:� Sheila Higdon

 

 

SB0303� The Sara Hohne Patient Protection Act

The Act allows hospitals to discharge a patient to any of the following: 1) entirely, 2) to another level of care, treatment or services, 3) to different health care professionals, or 4) to settings for continued services.� To facilitate discharge, the hospital shall assess a patient's needs; plan for discharge or transfer; facilitate the discharge or transfer process; give the patient or person responsible for providing continuing care to the patient, written discharge instructions in a form that the patient can understand; and help to ensure that continuity of care, treatment, and services are maintained.� The Secretary may impose a civil money penalty of no more than $10,000 for failure to comply, and a hospital may appeal such a penalty.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #296.

 

For more information, please contact:� Sheila Higdon

 

 

SB0782� Public Health - Child Abuse and Neglect Centers of Excellence Initiative

This Act establishes the Child Abuse and Neglect Centers of Excellence. These centers will be local and regional multidisciplinary teams of health care professionals and health facilities with the expertise to diagnose and treat child abuse and neglect.� The faculty of these centers will be clinical experts as designated by DHMH who in turn provide training, consultation, and support to local and regional health care professionals for the diagnosis and treatment of child abuse and neglect in their locale/region.� The purposes of these centers of excellence are five-fold: 1) to improve protection of children in Maryland; 2) to recruit local physicians to gain clinical expertise in the diagnosis and treatment of child abuse and neglect; 3) to develop and guide the practice of local or regional multidisciplinary teams; 4) to facilitate the appropriate prosecution of criminal child abuse and neglect; and 5) to provide expert consultation and training through teleconferencing and on-site services to local or regional multidisciplinary teams in the diagnosis and treatment of physical child abuse and neglect and sexual abuse.� The centers for excellence shall: 1) assist local and regional jurisdictions to develop standards and protocols for the composition and operation of local or regional centers of excellence; 2) provide training and consultation to local or regional centers of excellence in the diagnosis and treatment of child abuse and neglect; 3) inventory existing academic and emergency resources available for teleconferencing and facilitate use of resources for investigative and treatment purposes; and 4) provide financial support to part- time local and regional expert clinic staff.� These centers of excellence may receive information from DHMH on and may consult with the DHMH on any case: referred from the Children in Need of Assistance Program; concerning children committed to DHMH or a local department of social services; or concerning children who are the subject of a child abuse or neglect investigation.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #334.

 

For more information, please contact:� Heather Barthel

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Health Care Practitioners

 

Again this session, a bill was introduced to set nurse-to-patient staffing ratios in acute-care facilities.� Patterned after similar legislation enacted in California, Maryland’s bill would have been even more restrictive and would have given DHMH the authority to determine staffing ratios in some instances.� It would have also required hospitals to report their staffing plans to DHMH and make them available to the public.� There would have also been very little latitude for changes in patient census or acuity.� The bill was given an unfavorable report by its assigned House committee.� Legislation that would have mandated overtime rules for nurses also failed.

 

Legislation passed that allows the Board of Nursing to issue temporary practice letters for nurse practitioners and Certified Registered Nurse Practitioner (CRNPs) who are changing practices and whose formal approval of a new written agreement has been submitted.� Two bills addressing HIV exposure to health care workers also passed.� One bill amended current law regarding testing of patients when an exposure to a health care worker has occurred, specifically adding “public safety worker.”� The other bill allowed HIV testing on an already obtained blood sample if a patient has been involved in an HIV exposure with a health care worker and refuses testing.

 

Legislation that changed the name of the Commission on Nursing and made it permanent failed.� A bill to extend the timeframe for the report on the legibility of prescriptions also passed.

 

The perennial issue of scope of practice between ophthalmologists and optometrists was at least temporarily resolved when both sides agreed to a compromise.� A bill that required the Board of Physicians to develop and disseminate a document to all licensees regarding the most recent diagnosis and treatment for Lyme Disease failed, primarily because it would have set a precedent for the Board that is not consistent with its charge.�� Individual pieces of legislation that regulated pharmaceutical technicians, licensed polysomnographers, and licensed cardiovascular technicians also failed.�

 

Listed below are the bills that passed during the 2005 Maryland Legislative Session:

 

 

HB0233� Public Health - Legibility of Prescriptions Workgroup – Reports

This Act extends the time for the workgroup to complete its work on the study of prescription legibility and requires that an interim report be submitted July 1, 2005.� A final report will be due by August 15, 2005.

 

Effective Date:� June 1, 2005

Signed by the Governor on April 12, 2005; Chapter #43

 

For more information, please contact:� Sheila Higdon

 

 

HB0399� State Board of Nursing - Miscellaneous Provisions

This statute authorizes the Board of Nursing� to issue temporary practice letters to nurse practitioners and nurse midwives if they: 1) have been issued a� temporary license and submitted a written agreement to the Board for formal approval; 2) are authorized to practice as an RN and submitted an initial written agreement to the Board for formal approval, or 3) have had a written agreement approved by the Board, are changing practice or locations, and have submitted a new written agreement for the new practice or location.� The Board may issue such a letter if the Board of Physicians (BOP) has received a written agreement submitted for formal approval of the scope of practice for which the temporary practice letter is requested, and the BOP has approved the issuance of the temporary practice letter.

 

Effective Date:� Emergency Measure (Effective upon enactment)

Signed by the Governor on 4/26/05; Chapter #206.

 

For more information, please contact:� Sheila Higdon

 

 

HB0719� Health Occupations - State Board of Examiners in Optometry - Scope of Practice

This Act alters the scope of practice for optometrists, authorizing an optometrist who has successfully completed an 8-hour approved course to administer or prescribe topical steroids in accordance with a practice protocol established by the Board of Optometry.��� It also provides that an optometrist who has graduated on or after July 1, 2005 from an accredited school of optometry is not subject to these provisions.

 

On or before October 1, 2005, the Board must approve at least one course as described above, administered by the Maryland Optometric Association in conjunction with the Maryland Eye Surgeons and Physicians. In addition, by November 30, 2005, the Board of Optometry, in consultation with and subject to the approval of the State BOP, shall adopt a collaborative practice protocol for the administration and prescription of topical steroids by therapeutically certified optometrists.

 

By June 1, 2008, the State Board of Examiners in Optometry and the State Board of Physicians shall each report to the Senate Education, Health and Environmental Affairs� Committee and the House Health and Government Operations Committee on issues related to the practice of optometry related to this act and each shall suggest changes to improve the quality of and access to care or to enhance the practice of optometry in the State.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #391.

 

For more information, please contact:� Sheila Higdon

 

 

SB0304� Health Occupations - Podiatrists - Scope of Practice

This statute adds osseous surgical procedures of the ankle in an ambulatory surgical center to the scope of practice permitted by a podiatrist.�� It also requires a podiatrist who performs an osseous surgical procedure of the ankle, arthrodesis of two or more tarsal bones, or a complete tarsal osteotomy in a licensed ambulatory surgical center to: 1) have current surgical privileges at a licensed hospital for the same procedure, and 2) meet the requirements of the ambulatory surgical center.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #297.

 

For more information, please contact:� Sheila Higdon

 

 

SB0321� Hospitals - HIV Testing - Public Safety Worker

Amending existing law, this Act adds "public safety worker" to those individuals on whom a hospital's designated infectious disease/communicable disease officer shall order a test for the presence of antibodies of HIV.� Public safety worker is defined as:� 1) any career or volunteer member of a fire, rescue, or emergency medical services department, company, squad, or auxiliary, 2) any law enforcement officer, and 3) the State Fire Marshal or a sworn member of the State Fire Marshal's office.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #300.

 

For more information, please contact:� Sheila Higdon

 

 

SB0718� Hospitals - HIV Testing - Consent and Public Safety Workers

The Act requires a hospital to order an HIV test if there has been an exposure between a patient and a health care provider or between a patient and a first responder before the patient is admitted to the hospital.� A hospital is required to order a test if: 1) informed or substitute consent of the patient to test a blood sample already obtained from the patient was sought and the patient refused, and 2) the patient has been informed that the hospital has the authority to test the sample without the patient's consent.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #330.

 

For more information, please contact:� Sheila Higdon

 

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Health Insurance

 

One bill passed by the General Assembly this year -- the Fair Share Health Care Fund Act -- has received national attention from news stations and talk radio across the county.� While some say the bill is representative of Maryland’s anti-business environment, others feel it will ensure that large businesses provide appropriate health care benefits to their employees.� The Fair Share Health Care Fund Act was supported by labor unions, several health care advocacy organizations, and at least one large retail chain, while the Governor, the Chamber of Commerce, and the nation’s largest retail chain, Wal-Mart (after whom the bill was nicknamed), opposed it.� The bill, which only applies to organizations that employ more than 10,000 individuals, requires employers to spend a mandated percentage of their payroll on heath care benefits (8% for businesses, 6% for non-profit organizations), or be subject to a tax that is determined by the difference between actual expenditures and the statutory threshold.� Although the bill was the subject of lengthy debates in the House and Senate, numerous amendments, and other efforts to prevent the bill’s passage, the bill passed with sufficient votes in both chambers to override a threatened veto. �

 

Listed below are the bills that passed during the 2005 Maryland Legislative Session:

 

 

HB0056� Consumer Protection - Privacy of Social Security Numbers

This statute prohibits certain disclosures of an individual’s Social Security number.� It applies to health insurance policies and contracts issued, delivered, or renewed on or after January 1, 2006.� Health insurance policies and contracts in effect before January 1, 2006 must comply by January 1, 2007.� Violations of the statute will be considered unfair and deceptive trade practice under the Maryland Consumer Protection Act.

 

Effective Date:� January 1, 2006

 

For more information, please contact:� Heather Barthel

 

 

HB0303� Health Insurance - Mandated Benefits - Smoking Cessation Treatment�

The Chapter requires insurers and HMOs to cover smoking cessation treatment including any drug that is approved by the U.S. Food and Drug Administration for cessation and obtained under a prescription.� Two 90 day courses of treatment during each policy year are authorized by this Act.� The Act exempts coverage for over–the counter cessation drugs.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #365.

 

For more information, please contact:� Jim Kaufman

 

 

HB1017� Joint Legislative Task Force on Small Group Market Health Insurance

The Chapter creates a six-member Joint Legislative Task Force on Small Group Market Insurance.� The task force will study and recommend the use of health status as a risk factor for rate adjustment, as well as the amount of permissible variation in the community rate, expanding the range of products, the medical loss ratio according to group size, and the number of employers offering the Limited Benefit Plan.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #409.

 

For more information, please contact:� Jim Kaufman

 

 

HB1091� Health Insurance - Prohibition Against Reunderwriting

The Act prohibits a health insurance carrier from re-underwriting an individual for health coverage after the individual contract has been issued.� “Re-underwrite” means to re-evaluate any health status-related factor, occupation, hobby, or activity of any individual for the purpose of terminating health coverage or moving the individual to a less favorable rate class.� It does not include moving an individual from one rate tier to another rate tier solely due to the addition or deletion of a family member under the health coverage, increasing the premium under an attained-age rate, or when an application is received from an enrollee to increase the benefits under the existing contract.

 

Effective Date:� Emergency Measure

Signed by the Governor on 5/10/05; Chapter #417.

 

For more information, please contact:� Jim Kaufman

 

 

HB1287� Maryland Rx Program

The Act establishes the Maryland Rx Program to achieve savings on prescription drugs for the State Employee and Retiree Health and Welfare Benefit Plan and any local government or other qualifying agency that chooses to participate.� The Maryland Rx program must seek savings through a preferred list of covered prescription drugs, drug manufacturer rebates, negotiated discounts, and other cost-saving measures.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #428.

 

For more information, please contact:� Heaher Barthel

 

 

HB1597� Health Insurance - Payment of Claims for Reimbursement - Erroneous Denial of Provider's Claim

The Act requires that if a health insurance carrier erroneously denies a reimbursement claim because of a claims processing error, and the provider notifies the carrier within one year of the claim denial, the carrier is require to reprocess the claim without regard to timely submission deadlines.

 

Effective Date:� October 1, 2005

Signed by the Governor on 4/26/05; Chapter #276.

 

For more information, please contact:� Jim Kaufman

 

 

SB0191� Medicare Supplement Plan A Policies - Individuals With a Disability – Rates

The Act prohibits a carrier that offers a Medicare supplemental policy from charging a different rate to medicare-eligible individuals who are under the age of 65 but are eligible for Medicare more than the average of the premiums paid by all policy holders age 65 and older in the State who are covered under the same plan.� A carrier is also prohibited from denying or making a condition of issuance of a Supplement Plan A because of health status, claims experience, or medical condition.� In addition, the Insurance Administration will conduct a study on the availability and affordability of all Medicare supplemental policies in the State.� The report is due before January 1, 2008 and sunsets on June 30, 2008.

 

Effective Date:� January 1, 2006

Signed by the Governor on 5/10/05; Chapter #289.

 

For more information, please contact:� Jim Kaufman

 

 

SB0300� Reimbursement of Health Care Providers - Sunset Repeal

This Act repeals the sunset on the requirement that HMOs pay non-participating providers the greater of 125% of the HMO rate for the same service or the rate paid by the HMO as published by the Centers for Medicare and Medicaid services.� In addition, the Act removes the sunset for the requirement that HMOs pay non-contracting trauma providers the greater of 140% of Medicare or the HMO for the same services.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #295.

 

For more information, please contact:� Jim Kaufman

 

 

SB0333 Health Insurance - Treatment of Morbid Obesity

The Chapter repeals the May 31, 2005 termination date on the mandated health benefit for the coverage of the surgical treatment of morbid obesity.�� The Task Force on the Surgical Treatment of Morbid Obesity shall remain in effect indefinately.� The Act also broadens the scope of information sources the task force must review to include any literature on the surgery.� The tack force must report it findings by December 1, 2007.� It requires the Maryland Health Care Commission and the Maryland Insurance Administration to provide staffing for the Task Force and the Maryland Insurance Administration to provide an annual report to the General Assembly.

 

Effective Date:� June 1, 2005

Signed by the Governor on 5/10/05; Chapter #301.

 

For more information, please contact:� Sheila Higdon

 

 

SB0521 �Health Insurance - High-Deductible Health Plans - Prohibition on Deductible – Exception�

The Act creates an exception from current law that allows a carrier or HMO to charge co-payments or coinsurance for home visits for a mother and newborn.� However, language was added stating that if the mother is enrolled in a high deductible plan, the enrollee is subject to the deductible.

 

Effective Date:� Emergency Measure

 

For more information, please contact:� Jim Kaufman

 

 

SB0772� Health Insurance - Substance Abuse Treatment – Copayments

The Chapter prohibits a health insurance carrier from charging a co-payment that is greater than 50% of the daily cost for Methadone maintenance treatment.

 

Effective Date:� Emergency Measure

Signed by the Governor on 4/26/05; Chapter #172.

 

For more information, please contact:� Jim Kaufman

 

 

sb0779� Health Insurance - Human Papillomavirus Screening Test – Coverage

The Act requires insurers and non-profit health service plans to provide coverage for a human papillomavirus screening test at the testing intervals outlined for cervical cytology screening by the American College of Obstetricians and Gynecologists.� This Act will be applicable to all policies, contracts, and health benefit plans issued or renewed in Maryland on or after October 1, 2005.� Any policy, contract, or plan in effect before October 1, 2005, must be in compliance by October 1, 2006.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #333.

 

For more information, please contact:� Sheila Higdon

 

 

SB0790� Fair Share Health Care Fund Act

The Act creates the Fair Share Health Care Fund, which requires for-profit and non-profit organizations with more than 10,000 employees in the State to spend a fixed percentage of their payroll on� employee health care.� The Act requires that beginning on January 1, 2007, these employers must submit to the Secretary of Labor, Licensing, and Regulation the amount and percentage of payroll spent by the employer State on health care costs for the previous calendar year.� Health insurance costs are defined to include payments for medical care, prescription drugs, vision care, medical savings accounts, and any other costs to provide health benefits as defined in Section 213(D) of the Internal Revenue Code.� In calculating the percentage of payroll, the employer may exempt wages paid to any employee in excess of the median household income in the State as published by the U.S. Census Bureau.

 

In calculating the tax, a non-profit that spends less than 6% or a for-profit that spends less than 8% of total wages on health care costs shall pay to the Secretary the difference between the percentage listed above and the actual amount paid during the previous calendar year.� The Act also specifies that an employer may not reduce an employee’s wages to reflect the costs paid to the Fair Share Health Care Fund.

 

In addition, the Act requires that beginning on March 15, 2007 and annually thereafter the Secretary of Labor shall report to the Governor and General Assembly on: 1) the name of each non-profit and for-profit employer with more than 10,000 employees in the State, 2) the employer’s definition of full-time and part-time employee, 3) the number of full-time and part-time employees, 4) the number of full-time and part-time employees who are eligible to receive health benefits, and 5) the number of full-time and part-time employees who are receiving health benefits from the employer.

 

Effective Date:� January 1, 2006

 

For more information, please contact:� Jim Kaufman

 

 

SB1014� Health Insurance - Small Group Market - Self-Employed Individuals

The Act prohibits a self-employed or sole proprietorship from seeking health insurance coverage from the small group market.� However, language was added stating that an individual who is enrolled before September 30, 2005 may continue to remain covered under the policy if the enrollee continues to work and reside in the State and meets various requirements demonstrating his or her status as a self-employed individual or sole proprietorship.� In addition, a report must be completed by the Insurance Administration on the availability and affordability of health insurance in the small group market and the number of self-employed individuals enrolled in MHIP.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #347.

 

For more information, please contact:� Jim Kaufman

 

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Long Term Care/Nursing Homes

 

A number of bills were introduced regarding the oversight of nursing homes and assisted living facilities.� A bill that required assisted living programs to have emergency electrical power generators and automated external defibrillators died in the Senate Finance Committee. Another bill that sought to create three categories of assisted living facilities – adult home care, residential care homes, and assisted living facilities – also did not pass, but will likely be reintroduced next session.� A bill that would have required hospitals and long-term care facilities to immediately report every resident’s death to the medical examiner did not pass, nor did a bill that would have allowed DHMH to use undercover patients to conduct unannounced quality assurance surveys in nursing homes.

 

Listed below are the bills that passed during the 2005 Maryland Legislative Session:

 

HB0688 �Nursing Homes - Family Council - Administrative Functions

This Act amends current statute by authorizing a nursing home to assist in the administrative functions of operating a family council, upon the written request of the council.

 

Effective Date:� July 1, 2005

Signed by the Governor on 4/26/05; Chapter #230

 

For more information, please contact:� Sheila Higdon

 

 

HB1047 �Nursing Facility Conversion Grant Program

The Act establishes the Nursing Facility Conversion Grant Program and authorizes the Board of Public Works, on the recommendation of the Secretary of DHMH to provide grants to counties, municipal corporations, and non-profit organizations to convert nursing facility beds to other health-care services.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #412.

For more information, please contact:� Sheila Higdon

 

 

SB0265� Assisted Living Programs - Criteria for Requiring Manager Training

The statute amends current law regarding training and continuing education requirements for managers of assisted living programs, requiring that managers of facilities with five or more beds to complete the training that is now required of managers of facilities with 17 or more beds.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #292.

 

For more information, please contact:� Sheila Higdon

 

 

SB0701� Nursing Homes and Assisted Living Facilities - Quality of Care Oversight�

The Act changes the name, membership, and duties of the existing Oversight Committee on Quality of Care in Nursing Homes.� It will be renamed the Oversight Committee on Quality of Care in Nursing Homes and Assisted Living Facilities and will be staffed by the Department of Human Resources.� One member of the Senate Finance Committee, one member of the Senate Education, Health & Environmental Affairs Committee, and two members of the House Health and Government Operations Committee shall serve on the Committee.� One representative each from the Departments of Human Resources, Aging, and Health and Mental Hygiene will also serve, as will a representative from DHMH's Mental Hygiene Administration.� Representatives of the following organizations will also serve:�

1) Three from area agencies on aging, including one member of a local long-term care ombudsman program

2) HFAM

3) LifeSpan

4) Hospice network

5) Maryland Hospital Association

6) Service Employees International Union

7) Maryland Chapter of AARP

8) United Seniors of Maryland

9) Voices for Quality Care

10) Mental Health Association individual member representative knowledgeable in elder issues

11) Greater Maryland Chapter of Alzheimer's Association, and

12) three from the assisted living industry.

 

Three consumers, one of whom lives in an assisted living facility, will also be on the Committee. The committee will be charged with evaluating the progress in improving the quality of nursing home care quality and assisted living facility care statewide, including the standards for the identification of the onset of dementia and Alzheimer's Disease, and the standards for the identification of conditions appropriate for hospice services.

 

The Oversight Committee will consider the findings and recommendations of the Office of Health Care Quality on the status of quality of care in nursing homes and assisted living facilities, and a report from the Deputy Secretary of Health Care Financing on the status of the Medicaid Nursing Home Reimbursement System.� The Oversight Committee will report to the Governor and General Assembly by December 1 annually.

 

Effective Date: October 1, 2005

 

For more information, please contact:� Sheila Higdon

 

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Medicaid

 

The Medicaid and Children’s Health Insurance Program (CHIP) budget continues to be one of the fastest-growing sections of State spending, surpassing the $4 billion level in FY 2006.� Medicaid alone now consumes more than 16% of the total budget, and from FY 1998 to 2004 the average annual growth in this program was 9.6%.���

 

In addition to the cost-containment actions included in the FY 2006 Medicaid budget as introduced by the Governor, the General Assembly adopted additional cuts including:

 

�         $18.5 million reduction for physician fee increases, which were fully-funded by an alternate funding source

�         $300,000 reduction in the MedBank program

�         $23 million reduction from the CY 2006 rate increase for Managed Care Organizations (MCOs) (this action is consistent with previous practices that fund MCO rate increases as a deficiency appropriation).

Additionally, the following language was adopted:

 

�         Requiring DHMH to submit actuarial certification of the sufficiency of the revised MCO capitation rates prior to submitting regulations to the Administrative, Executive, and Legislative Review Committee (AELR) altering the capitation rates to reflect reductions assumed in the FY 2006 budget

�         Restricting $3.5 million for the purchase of case management services for individuals who receive care in the Rare and Expensive Case Management Program

�         Restricting $8 million until DHMH adopts and implements a quality control program for MCOs. While the General Assembly passed legislation addressing MCO quality (see Medical Loss Ratio section) that supersedes the budget language, the language restricting the funds was not removed from the budget

�         Allocating $1.5 million for Medicaid coverage for pregnant women who are legal immigrants but do not qualify for full Medicaid benefits

�         Restricting $433 million for future payments to nursing homes.� The language is an attempt by the budget committees to partially restore the reduction in nursing homes’ budgets included in the base budget

�         Exempting atypical antipsychotic medications from prior authorization requirements, with the exception of those medications provided by managed care organizations

�         Requiring FY 2006 to be the final year DHMH may use hospital day limits as a cost- containment measure.

 

After extensive discussions regarding MCOs’ use of hospital-based teaching clinics, the General Assembly adopted language requiring DHMH, in consultation with the Department of Legislative Services, the Maryland Hospital Association, the academic health centers (AHCs), the Health Services Cost Review Commission (HSCRC), and MCOs to study the impact of using� AHCs in the HealthChoice program.� The study shall:

 

�         determine whether there are financial disincentives regarding the use of AHCs or their affiliated hospital-based clinics

�         examine whether the State should continue to ensure access to AHC clinics

�         consider the current relationship between MCOs and AHCs

�         include an analysis of the potential implications of a reimbursement methodology for hospital-based clinics similar to that used for federally qualified health centers, and

�         include options, if indicated, to assist the AHCs outside of the MCO rate-setting process.

 

In addition, the language states that the HSCRC shall consider the findings and recommendations of the report prior to making any determination regarding MCOs.� The report, which is due July 1, 2005, must include recommendations for the CY 2006 rate- setting process.

 

The General Assembly also adopted legislation that addresses the Medicaid medical loss ratio (MLR).� The bill retains the 85% MLR, but allows an MCO sanctioned under a violation of the minimum MLR to appeal the decision of the Secretary.� In addition, before DHMH may levy a sanction, regulations are required to establish a standardized definition of MLR to be used by all MCOs, procedures for reviewing an MCO’s financial performance beyond one year, standard data collection and reporting requirements, and the conditions under which the Secretary may levy the sanction.� Finally, the bill prevents DHMH from altering the current quality initiatives unless the revised performance measures are adopted by regulations and revised targets for the measures are provided to the MCOs at least three months prior to implementation.� This language supersedes language currently included in the FY 2006 operating budget that requires DHMH to withhold 0.5% of the MCOs’ capitation rates and use these funds as incentive payments at the end of the year.

 

Listed below are the bills that passed during the 2005 Maryland Legislative Session:

 

HB0085� Maryland Medical Assistance Program - Medical Loss Ratio and Quality of Care

The Chapter maintains the 85% medical loss ratio (MLR), but adds language stating that if the Secretary should adjust the rates to any MCO for failure to achieve the 85% MLR, the MCO may appeal that decision to the Board of Review and take any further appeal allowed by the Administrative Procedure Act.� Prior to the implementation of a rate adjustment, the Secretary is required to adopt regulations establishing the definition of "loss ratio,” procedures to consider the MCO's financial performance in prior periods, standard data collection and reporting requirements, and a mechanism for and the conditions under which a rate adjustment may be made.

 

In addition, the Act states that the Department may modify or replace the Value Based Purchasing Initiative, but any changes to the core set of performance measures and the methodology for penalties and rewards must be adopted by regulation prior to the calendar year for which the MCOs will be held accountable.� The MCOs will receive the core set of performance measures and their targets at least three months prior to the calendar year in which they will be used, and any penalty or capitation adjustment imposed under this section may not be implemented by a means of withholding a capitation payment.

 

For CY 2005, the Department may modify the ranges or targets of the core set of performance measures, but the amounts of financial rewards shall be calculated using the Value Based Purchasing Initiative in effect on January 1, 2005.

 

Effective Date:� June 1, 2005

Signed by the Governor on 4/26/05.; Chapter #193.

 

For more information, please contact:� Jim Kaufman

 

 

HB0990� Benefits and Services for Individuals Who Are Incarcerated or Institutionalized

This Chapter requires DHMH to suspend Medical Assistance benefits for individuals who are incarcerated or who are admitted to an institution for the treatment of mental disease.� However, the Department may not terminate benefits for these individuals.

 

Effective Date:� July 1, 2005

Signed by the Governor on April 12, 2005; Chapter #82

 

For more information, please contact:� Jim Kaufman

 

 

SB0895� Department of Health and Mental Hygiene - Maryland Health Insurance Plan - Computerized Eligibility System

The Chapter allows the Maryland Health Insurance Program (MHIP) to transfer up to $15 million in FY 2006 to the Major Information Technology Development Project Fund for the development of a computerized eligibility system for the Medicaid Program.� The system will enroll eligible individuals, refer eligible individuals to MHIP, and make referrals to other State and federal programs providing inpatient hospitalization for uninsured patients.�

 

The Chapter requires that before an RFP is issued, MHIP must submit a report to DHMH that will enumerate the specifications of the new system, demonstrate how the system will be more efficient and effective than the current system, and estimate the reduction on hospital uncompensated care.� The new system will take effect when the federal Centers for Medicare and Medicaid Services approve a waiver regarding the proposed funding of the computer system.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #343.

 

For more information, please contact:� Jim Kaufman

 

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Mental Health

 

Several significant bills pertaining to mental health were introduced but ultimately did not pass this session.� One of the bills proposed a wide variety of additional requirements relating to a mentally ill individual’s prescription medications, emergency evaluations, admissions, judicial proceedings, involuntary admissions and their clinical reviews, and social worker consults.� Another bill attempted to impose an additional level of oversight within the Mental Hygiene Administration.� Both were defeated in committee.� Other bills attempted to protect patient confidentiality by imposing a new certificate of notice informing patients that disclosure of their medical records was being sought and that they have a right to file a motion to quash or a motion for a protective order against the Health Professional Licensing Board’s subpoena.� The bill received an unfavorable report by the House Health and Government Operations Committee once it crossed over from the Senate.

 

Listed below are the bills that passed during the 2005 Maryland Legislative Session:

 

HB1273� Task Force on the Needs of Persons with Co-Occurring Mental Health and Substance Use Disorders - Termination Date Extension and Modifications�

This Act alters the composition and number of members on the renamed Task Force on the Needs of Persons with Co-Occurring Mental Health and Substance Use Disorders created in 2003 and modifies existing study and reporting requirements.� It extends the life of the task force until December 31, 2006.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #426.

 

For more information, please contact:� Sheila Hidgon

 

 

SB0163 Refusal of Psychiatric Medication - Clinical Review Panel

This Act repeals the June 30, 2005 termination date in the current statute that established clinical review panels.� These panels determine whether psychiatric medication should be administered to a person who refuses such medication.

 

Effective Date:� June 1, 2005

Signed by the Governor on April 12, 2005; Chapter #13

 

For more information, please contact:� Sheila Higdon

 

 

SB0544� Joint Committee on Access to Mental Health Services - Establishment, Membership, and Duties�

The Act establishes the Joint Committee on Access to Mental Health Services in order to monitor access to public mental services for eligible individuals and medically necessary mental health services for individuals covered by private insurance.� The Committee shall submit an annual report to the Governor and the General Assembly regarding the systemic barriers to accessing mental health services and make recommendations to mitigate these barriers.

 

Membership will consist of eight members of the Maryland General Assembly; four senators appointed by the President of the Senate, and four delegates appointed by the Speaker of the House.� Two of the senators shall be members of the Senate Finance Committee and two shall be members of the� Senate Budget and Taxation Committee.� Two of the delegates shall be members of the House Health and Government Operations Committee, one member of the House Appropriations Committee and one member of the� House Economic Matters Committee.� Each of the presiding officers shall select a committee co-chair from their respective chambers.

 

Effective Date:� June 1, 2005

Signed by the Governor on 5/10/05; Chapter #318.

 

For more information, please contact:� Sheila Higdon

 

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Public and Environmental Health������

 

Several pieces of legislation were introduced during the 2005 Session that focused on key concerns related to public and environmental health issues, such as gun and tobacco control, obesity, immunization, and vehicle passenger safety, among others.

 

Lead Paint

In an effort to ensure that lead hazard reductions are properly performed by owners of affected properties, HB 1155 was passed.� This bill prevents property owners from hiring a relative to perform required inspections or lead-contaminated dust testing.� Another bill seeks to mitigate the hazards of lead paint.� It reduced the elevated blood lead levels which trigger a corrective action, expanded the scope of affected properties to include exterior structures such as play ground equipment and benches, and strengthened the Maryland Department of the Environment’s (MDE) authority to enforce the standards.� The bill passed with unanimous support in both the House and Senate.

Gun and Tobacco Control

Legislation sought to reduce the use of assault weapons by enhancing incarceration periods for individuals convicted of using an assault rifle or a copycat weapon in the commission of a felony or crime of violence.� Gun control legislation is always highly controversial and, although it received a hearing in the Senate Education, Health, and Environmental Affairs Committee in February, the committee never voted on the bill.

 

Another bill that did not pass was an effort to further restrict where people are allowed to smoke.� It would have prohibited indoor smoking in all workplaces, including bars and restaurants, in order to protect the citizens of Maryland from the adverse effects of second-hand smoke.� This is a perennial bill that always faces stiff opposition.� A counter-measure intended to pre-empt and prevent county-level passage of new anti-smoking legislation was also defeated.

 

Obesity

In an effort to reduce the development and subsequent detrimental consequences of obesity among Maryland's children and youth, a number of bills were introduced to improve and expand educational materials and policies on the topic.� Both the Senate and House passed Joint Resolutions that profile obesity as an increasing health concern and a cause of rising medical costs in Maryland.� Two bills detailed below did pass. One requires the Maryland State Department of Education to hire a full-time director of physical education, and the other requires county boards of education to include courses on the importance of good health and physical exercise.

 

Immunizations

Several bills were introduced this year pertaining to vaccine safety and control.� HB 267, which extends the sunset date of the Statewide Advisory Commission on Immunizations until 2008, was passed.

 

A number of other bills pertaining to immunization were defeated.� One would have prohibited the vaccination/injection of any product that contains any level of mercury or any other heavy metal into an individual under the age of three or into a woman known to be pregnant.� Another would have permitted any individual or individual’s guardian to refuse vaccination for the sole reason of conscience.� In addition, the State would be prohibited from enforcing immunizations even in the event of an epidemic emergency.� Another bill would have encouraged more wide spread use of a new bacterial meningitis vaccine by providing education materials to parents of K-12 students, profiling the vaccine and the dangers of bacterial meningitis.�

 

Vehicle Passenger Safety

Several vehicle safety bills were introduced this year.� One bill (SB 57) passed that prohibits the use of a wireless communication device by a driver with a learner's permit or provisional license, passed. The bill restricts a minor for the first 151 days of his or her provisional license from driving with passengers under the age of 18, unless the passengers are legally related to the licensee or the licensee is accompanied in the car by an licensed adult at least 21 years old.

 

Significant among defeated bills pertaining to vehicle passenger safety legislation was one that would have exempted drivers and riders of motorcycles from protective headgear requirements.� Exceptions would have included operators aged 21 or older who have been licensed to ride a motorcycle for at least two years and operators aged 21 or older who have completed an approved motorcycle safety course.� A bill that required the Motor Vehicle Administration (MVA) to make publicly available a list of all approved protective headgear and eye-protective devices for motorcyclists was also defeated.� Another bill that was defeated expanded the application of the mandatory seat belt law by requiring motor vehicle passengers at least 16 years old to be restrained by a seat belt in any seat of the vehicle.

 

MTBE

There were multiple bills introduced this session concerning Methyl Tertiary Butyl Ether (MTBE), a gasoline additive, in response to the contamination in Harford County this past summer. Several passed that will enhance monitoring and notification requirements regarding MTBE.� This issue has been controversial for some time now and will continue to be so in future sessions.

 

Computer Recycling

Delegate Dan Morhaim for several years has introduced legislation attempting to address the problem of disposal of obsolete computers.� This session he was successful in shepherding a pilot computer recycling program through the legislature.� This will assist in preventing the estimated 315 million obsolete computers in the United States from being inappropriately disposed of in State landfills.�

 

Listed below are the bills that passed during the 2005 Maryland Legislative Session:

 

hb0083� Environment - Brominated Flame Retardants - Pentabrominated and Octabrominated Diphenyl Ether – Prohibition

This statute establishes prohibitions and requirements relating to the sale, use, and distribution of products and product components containing “brominated flame retardants” (BFRs).� Beginning January 1, 2007, notification and labeling requirements are established.� The statute phases out (between October 1, 2008 and October 1, 2012) the sale, process, use, and distribution of products that contain more than one-tenth of 1% of specified BFRs.� By January 1, 2006, the MDE must adopt regulations that establish a fee on the sale of products containing BFRs; the fee must be sufficient to cover MDE’s costs of implementing this statute.� It also establishes reporting requirements for MDE and authorizes the department to adopt regulations to implement the statute.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Heather Barthel

 

 

HB0251� Waste Management Administration - Lead Poisoning Prevention

This Act: 1) reduces the elevated blood level (EBL) that triggers notification by local health departments, lead hazard requirements, and compensation to children for medical care and relocation; 2) strengthens enforcement authority by eliminating the 20 day grace period for violations, thereby authorizing MDE to seek immediate administrative penalties; 3) expands current law to include exterior structures such as playground equipment and benches, making such structures subject to the risk reduction, liability protection, and other provisions of the Reduction of Lead Risk in Housing subtitle; 4) provides for automatic waivers from risk reduction requirements during the winter months, except under specified conditions; 5) establishes a transition period for meeting the risk reduction requirements for owners who acquire specified noncompliant properties; 6) provides that a rental property owner who receives a notice of defect or notice of EBL is only obligated to satisfy the modified risk reduction standard once for the same triggering event; and 7) modifies the provision exempting specified property from the risk reduction standards by requiring that the inspection report state that all interior and exterior surfaces are lead-free.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #278.

 

For more information, please contact:� Heather Barthel

 

 

HB0267� Statewide Advisory Commission on Immunizations

The Statewide Advisory Commission on Immunizations is charged with: 1) determining where community vaccine shortages exist and which vaccines are in short supply; 2) developing recommendation plans to equitably distribute vaccines; and 3) studying and making recommendations about other vaccine-related issues.� The statute delays the sunset date of the Statewide Advisory Commission on Immunizations for three years from May 31, 2005 to May 31, 2008.

 

Effective Date:� June 1, 2005

Signed by the Governor on 4/26/05; Chapter #200.

 

For more information, please contact:� Sheila Higdon

 

 

HB0355� Nontransient Noncommunity Water Systems - Methyl Tertiary Butyl Ether – Testing

The Act requires nontransient noncommunity water systems, including those that primarily provide bottled water, to test, not less than once per year, the water provided by the system for the presence of MTBE and report the findings to MDE.� If the level of MTBE in the testing sample meets or exceeds 20 parts per billion, the water system must notify persons regularly served by the system.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Heather Barthel

 

 

HB0415� Natural Resources - Program Open Space Funds - Transfer to Maryland Heritage Areas Authority Financing Fund and Required Study

This Act increases the amount of Program Open Space (POS) funding, from $1 million to up to $3 million, which is authorized to be transferred to the Maryland Heritage Areas Authority (MHAA) Financing Fund within the Department of Housing and Community Development (DHCD).� By December 1, 2005, MHAA must study and report to specified committees of the General Assembly regarding the status, expense, and achievements related to heritage areas.� POS, established in 1969, provides funds for State and local acquisition and development of public outdoor recreation sites, facilities, and open space.� POS is statutorily funded through special funds derived from the State’s real estate property transfer tax.� Prior to this Act, of the transfer tax revenues distributed to POS, $1 million may be transferred by an appropriation in the State budget or by budget amendment to the MHAA.� From the remaining funds, half is allocated for State acquisition and half is allocated to local governing bodies for acquisition and development of land for recreation and open space purposes.

 

Effective Date:� October 1, 2005

Signed by the Governor on 4/26/05; Chapter #209

 

For more information, please contact:� Heather Barthel

 

 

HB0373� Environment - Methyl Tertiary Butyl Ether - Clean Gasoline Alternatives – Report

This statute requires MDE to request that the U.S. Environmental Protection Agency take prompt action to waive federal requirements that reformulated gasoline (which contains minimum oxygen content in accordance with the provisions of the 1990 amendments to the Clean Air Act) be sold in the State.� It also requires that on or before December 1, 2006, MDE shall develop and submit a plan to the Senate Education, Health, and Environmental Affairs Committee and the House Environmental Matters Committee regarding the phasing-out of the use of MTBE in gasoline sold in the State.� This provision shall remain effective for a period of one year and three months and, at the end of December 31, 2006, with no further action required by the General Assembly, the Act shall be abrogated.

 

Effective Date:� July 1, 2005

 

For more information, please contact:� Heather Barthel

 

 

HB0374� Oil Discharge - Groundwater Contamination – Notification

The Act requires that when an oil spill occurs, MDE must notify property owners located within one-half mile of a site found to be contaminated with MTBE at a level of 20 parts per billion or higher.� Included in the notification will be information on the amount of MTBE contamination at the site, the actions MDE is taking to address the contamination, and the actions that the property owner should take to protect health and property.� It also requires the person responsible for a specified oil spillage to be liable for the costs to MDE for providing this notice.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Heather Barthel

 

 

HB0434� Health General - Diseases Required to be Reported by Medical Laboratories - Creutzfeldt-Jakob Disease

The Act adds Creutzfeldt-Jacob Disease (CJD) to a list of diseases and conditions that medical laboratories must report to specified agencies. CJD is a rare, degenerative brain disorder and there have been concerns that bovine spongiform encephalopathy (Mad Cow Disease), may be associated with CJD.

 

Effective Date:� October 1, 2005

Signed by the Governor on 4/26/05; Chapter #210.

 

For more information, please contact:� Sheila Higdon

 

 

HB0575� Environment - Statewide Computer Recycling Pilot Program

This Chapter establishes the Statewide Computer Recycling Program in � 9-1727 of the Environment Article.� On or after January 1, 2006, a manufacturer may submit an environmental compliance plan for computers to MDE.� The plan shall include a description of the actions taken and planned by the manufacturer to design its computers so that they are easily broken down into recyclable components and contain the least achievable amount of hazardous materials, as well as a description of any computer recycling or reuse efforts conducted or supported by the manufacturer, including recycling contracts with businesses located in the State.� After review of the manufacturer's environmental compliance plan, if MDE determines that implementation of the plan by the manufacturer will significantly reduce the amount of computer waste entering the solid waste stream, the department shall certify the manufacturer's plan.

 

A certification granted or renewed is valid for two years.� Prior to the expiration of the certification, a manufacturer may apply to MDE for a certification renewal.� The application for renewal shall include details of the manufacturer's implementation of the original environmental compliance plan.� The Chapter establishes a State computer recycling fee, which.shall be in effect on or before July 1, 2006, at a level that ensures funding sufficient to implement and operate the statewide computer recycling program.� On or after July 1, 2006, if the manufacturer does not have a certified environmental compliance plan for computers, the fee shall be imposed on the first sale of a new computer by a retailer to a consumer in the State and collected by the retailer at the time of the sale.� On or before the 21st day of the month that follows the month in which the sale was made, the retailer shall submit to the Comptroller of the Treasury an account of any fees collected and any fees collected, less the administrative costs.

 

A retailer who submits a timely accounting of the fees collected and paid is allowed a credit for the expense of administering the collection and payment of the fees equal to 1.2% of the gross amount of the State Computer Recycling Fees that the retailer must pay to the Comptroller.

 

If the amount of the State Computer Recycling Fee is separately stated in a retail sale, the fee is not subject to any tax under Title 11 of the Tax - General Article.� At the end of each quarter, the Comptroller shall forward all State Computer Recycling Fees to the Statewide Computer Recycling Fund, less the costs of administration.

 

The Act establishes the Statewide Computer Recycling Fund.� The fund may be used only for costs incurred in conducting outreach to educate the public on the importance of recycling computers and sites where computers may be recycled; for activities related to computer recycling programs, including research, planning, monitoring, public education, and market development; and to provide grants to local governments for costs related to the implementation of county or regional computer recycling systems.

 

Effective Date:� July 1, 2005

Signed by the Governor on 5/10/05; Chapter #384.

 

For more information, please contact:� Heather Barthel

 

 

HB1155� Environment - Lead-Contaminated Dust Testing and Inspections - Related Party

In an effort to ensure that lead hazard reductions are being properly performed, this Act prohibits an owner of affected property from employing or engaging a party related to the owner to perform lead-contaminated dust testing or conduct inspections required under the lead law.� MDE must impose an administrative penalty of up to $25,000 on any person who violates the prohibition.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #420.

 

For more information, please contact:� Heather Barthel

 

 

SB0050� Motor Vehicles - Learners' Permits and Provisional Licenses - Prohibition on Use of a Wireless Communication Device While Driving�

This Act prohibits a provisional license holder and the holder of a learner's instructional permit who is under 18 years old from using a wireless communication device such as a cell phone while operating a motor vehicle.� The prohibition does not apply if the licensee or permit holder uses a wireless communication device in an emergency to contact a 911 system while driving.� If the Moter Vehicle Administration (MVA) receives satisfactory evidence of a violation, the MVA may suspend or revoke the individual’s driver's license.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Heather Barthel

 

 

SB0057� Vehicle Laws - Minor Holding Provisional Driver's License - Prohibition Against Minors as Passengers

The Chapter requires the MVA to impose a restriction prohibiting provisional driver’s license holders younger than 18-years-old, from driving a motor vehicle with a passenger younger than 18 until the 151st day after the provisional� license has been issued unless the provisional licensee is accompanied by and under the immediate supervision of an individual who: 1) is at least 21 years old, 2) has been licensed to drive a vehicle of the same class for at least three years in Maryland or another state, and 3) is seated beside the holder of the provisional license.� This prohibition does not apply to a passenger who is legally related to the licensee (e.g. spouse, child, stepchild, sibling, stepsibling, or other relative who resides at the same address as the licensee).� A police officer may only enforce this provision as a secondary violation (i.e. it cannot be the primary cause for stopping a motorist.)� A violation of this restriction is considered a moving violation for which, if convicted, the MVA may suspend or revoke the driver's provisional license.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Heather Barthel

 

 

SB0129 �Energy Assistance Program Act

This departmental bill updates the Department of Human Resources’ Energy Assistance and Information Program Act to reflect current titles, criteria, and administrative authority. The bill renames the Act the Energy Assistance Program Act and expands who is served to include low-income households with children. It identifies the Community Services Administration’s Office of Home Energy Programs (OHEP) as the program administrator. An energy emergency is redefined as a lack of fuel or the imminent discontinuation of energy services supplied by a fuel or utility vendor that will endanger health, safety, or welfare. The bill repeals a reference regarding the transfer of an employee of the Maryland Office of Economic Opportunity (the office previously responsible for this program) to the State Personnel Management System.

 

Effective Date:� October 1, 2005

Signed by the Governor on 4/26/05; Chapter #119.

 

For more information, please contact:� Heather Barthel

 

 

SB0233 �Education - Physical Education Director

This Act requires the Maryland State Department of Education to employ a full-time director of physical education.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Heather Barthel

 

 

SB0473� Student Health Promotion Act of 2005

In an effort to reduce the development and consequences of obesity, the Act requires county boards of education to: 1) include in health education curricula material emphasizing the importance of physical activity in maintaining good health and 2) require the use of timing devices on all vending machines to automatically provide or allow access in accordance with the county school board's nutrition policy.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #312.

 

For more information, please contact:� Heather Barthel

 

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Research

 

After five bills regarding stem cell research were introduced followed by more than 12 hours of public testimony, including comments from three researchers from Johns Hopkins, ultimately no stem cell legislation passed this session.

 

While bills attempting to restrict embryonic stem cell research failed, four committees of the General Assembly recommended passage of legislation providing State support for stem cell research.� However, the two chambers took different directions on the legislation.� The House bill provided $23 million for embryonic stem cell research and $2 million for prostate cancer programs, and adopted language requiring the scientific peer review committee to be open to the public.� Meanwhile the two Senate committees with jurisdiction over the stem cell bill also took different directions.� The Senate Education, Health, and Environmental Affairs Committee redirected $25 million from the Cigarette Restitution Fund to support embryonic stem cell research.� However, the Senate Budget and Taxation Committee expressed concern with creating additional CRF funding requirements.� The committee subsequently removed the provision that the Governor must provide funding for this research and instead allowed the Governor to decide if and how much to provide for these efforts.

 

Rumors abounded that the General Assembly would end the session with deliberations on State funding of stem cell research and a filibuster on the Senate floor during the final hours of the session.� Though President Miller did not allow the bill to come to the floor sooner because the proponents were unable to secure 29 votes to end a threatened filibuster, it was widely speculated that he was planning to use the stem cell filibuster to tie up some of the Administration’s legislative proposals.� Although the stem cell bill was on the Senate agenda for the final hours of session, it was never brought to the floor.

Stem cell legislation received most of the research-focused attention during the session, but it was not the only research issue legislators confronted.� In response to the Consumer’s Union’s grassroots efforts, members of the House and Senate introduced bills that attempted to further regulate the reporting of clinical trials.� Both bills were inconsistent with federal reporting requirements and would have imposed separate regulations on Maryland researchers and Institutional Review Boards (IRBs).� Although the House bill was satisfactorily amended to remain essentially consistent with federal guidelines, the Senate bill applied an onerous provision to the reporting of clinical trial results that was neither feasible nor practical.�� A conference committee was appointed to attempt to resolve the differences between the House and Senate versions, but was never convened, thus killing the bill.

 

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Tort Reform/Medical Liability

 

While there were a number of medical liability reform bills introduced during the 2005 session, ultimately no further significant tort reform passed.� SB 836, the corrective bill to HB 2 of the special session, passed.� Amendments were introduced on the floor of each house attempting to add additional tort reform.� However, all of the amendments failed, and the bill passed by a wide margin on both sides, 42 - 4 in the Senate and 130 - 3 in the House.� This bill was an emergency measure and, since it passed by more than the required three-fifths majority and the Governor had not acted on the bill by March 31, the bill became effective without his signature.� This bill was important to Hopkins as it contained a provision that delayed the implementation of the 2% tax on MCOs until April 2005.�

 

Additionally, the House Judiciary Committee passed legislation, sponsored by Delegate Bobby Zirkin.� The committee amended the bill to include a number of additional reform measures, such as enhanced apology protection, mandatory remittitur, mandatory neutral expert witness, bad faith venue, and additional insurance reform.� The bill also provided for a summer task force charged with studying structured judgments, limited immunity for emergency department providers, a no-fault birth-related neurological injury fund, and additional insurance reform.� The bill passed the full House of Delegates just before the crossover deadline.� However, it was referred to the Senate Rules Committee, where it remained and was never acted on.

 

Listed below are the bills that passed during the 2005 Maryland Legislative Session:

 

HB0404 �Courts - Certificate of Merit - Licensed Professional�

This Act amends �3-2C of the Courts and Judicial Proceedings Article - Malpractice Claims Against Licensed Professionals.� The definition of a "Claim" is modified by adding that it is not only an action filed against the licensed professional but also if it is filed against the employer of a licensed professional.

 

Effective Date:� October 1, 2005

 

For more information, please contact:� Heather Barthel

 

 

HB0829� Civil Actions - Defenses - Sales of Food, Drugs, Cosmetics, and Other Health-Related Products

This statute adds to � 21-1114 of the Health – General Article.� In any action brought under � 11-209 of the Commercial Law Article, a person that sells, distributes, or otherwise disposes any drug, medicine, cosmetic, food, food additive, commercial feed, or medical device may not assert as a defense that the person did not deal directly with the plaintiff and may prove, as a partial or complete defense against a damage claim, in order to avoid duplicative liability, that all or any part of an alleged overcharge ultimately was passed on to another person by a purchaser or seller in the chain of manufacture, production, or distribution who paid the alleged overcharge.

 

The statute also adds to the Commercial Law Article by stating that the Attorney General may bring an action on behalf of the State or any of its political subdivisions “or as parens patriae on behalf of persons residing in the State” to recover damages.� An action brought by the Attorney General as parens patriae is superior to any class action brought on behalf of the same person.

 

Effective Date:� October 1, 2005

Signed by the Governor on 5/10/05; Chapter #397.

 

For more information, please contact:� Heather Barthel

 

 

HB0836� Maryland Tort Claims Act - Structured Settlements

This Act amends �12-107 of the State Government Article, the definition of "structured settlement" to include the payment of a settlement or a judgment.� Current law provides only for the payment of a judgment.

 

Effective Date:� July 1, 2005

 

For more information, please contact:� Heather Barthel

 

 

Sb0836� Maryland Patients' Access to Quality Health Care Act of 2004 - Implementation and Corrective Provisions

This emergency bill makes substantive and technical changes to HB 2 - Maryland Patients’ Access to Quality Health Care Act of 2004 (adopted during the special session).� The Chapter adjusts the actuarially soundness test for the MCOs capitation payments to include expenses and taxes, allowed under federal law, that are incurred by MCOs in providing care.� In addition to this change, the effective date of the MCO tax was moved from January 1, 2005 to April 1, 2005.� As a result of this delay in the MCO tax, the Chapter alters the funding for the Maryland Health Care Provider Rate Stabilization Fund to:

 

FY 2005 - $3.5 million for Medicaid

FY 2006 - $52 million to the Rate Stabilization Account and $30 million for Medicaid

FY 2007 - $45 million for the Rate Stabilization Account and $45 million for Medicaid

FY 2008 - $35 million for the Rate Stabilization Account and $65 million for Medicaid

FY 2009 - $25 million for the Rate Stabilization Account and the remainder to Medicaid

FY 2010 and thereafter, the entire amount is dedicated to Medicaid

 

The Chapter clarifies that the purpose of the fund is to retain health care providers by allowing liability insurers to charge lower rates, increase the fee for service rates paid by Medicaid, pay specified MCO providers consistent with the fee for service rates paid by Medicaid, and increase capitation rates paid to MCOs.

 

In addition, the Insurance Commissioner must deny an application or refuse to renew a certificate if the insurer fails to pay the assessment for the People’s Counsel Division in the Office of the Attorney General.� Chapter 1 also modifies the information included in reports from a medical professional liability insurer to include any proprietary information, but the Commission shall deny inspection of any part of a report that is determined to contain confidential commercial information.

 

Effective Date:� Emergency Measure

Became law without the Governor’s signature on March 31, 2005; Chapter #1

 

For more information, please contact: �Jim Kaufman

 

 


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.

901 S. Bond Street, Suite 540
Baltimore, MD 21231
443-287-9900
fax 410-287-9898

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

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

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

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

Bret Schreiber��������������������� [email protected]

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

 

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