Legislative Hotline
2006 SESSION OF THE
MARYLAND GENERAL ASSEMBLY
Volume
13, Number 10������������������������������������������������������������������������������������������� March 22, 2006
Here are some of the hot
issues as the 2006 Legislative Session develops:
BILLS
INTRODUCED
STAFF CONTACT INFORMATION
Senate
The Senate
passed both the operating and capital budgets last Friday (March 17).� The budget included the following actions
that are of particular relevance to Johns Hopkins:
CARDIOVASCULAR
TOWER������� $17.5m��� ($10 million increase in Capital Budget)
PEDIATRIC
TRAUMA CENTER���� $15m������ ($10 million increase in Capital Budget)
SCHOOL OF
NURSING/BERMAN BIOETHICS INSTITUTE $3m ($.333 million increase over Governor's proposed
budget)
Items of
particular significance in the operating budget include full funding of the Sellinger Aid Program, which translates to $21 million in
FY07 for Johns Hopkins.� This represents
an 11% increase over FY06.� In addition,
the Cigarette Restitution Fund programs at Johns Hopkins were funded at their
FY05 levels of $2.47 million for the cancer research grant and $1.2 million for
the public health grant.� The cancer
research grant received a 50% increase over last year’s appropriation and
the public health grant was level funded.
House
The House
Appropriations Committee made final decisions on the operating budget last week
and brought the budget to the floor on Monday evening for debate on
Wednesday.�
House
hearings on the Johns Hopkins’ capital projects took place Monday
morning.� House Subcommittee decisions so
far have matched the overall commitment of $32.5 million for Johns Hopkins
Medicine’s projects that the Senate had set in its budget.� Final capital decisions in the House are
expected on Thursday.� The capital budget
is projected to be reported to the floor by Friday or next Monday.
The
conference committee on the operating budget will take place this weekend with
a final budget being passed early next week; the capital budget conference is
expected to be finished by Friday, March 31st.
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BILLS INTRODUCED
Economic Development
HB0834� Income Tax - Maryland Biotechnology Tax Benefit
Certificate Program
House Bill 834 creates the Maryland Biotechnology Tax
Benefit Certificate Program to be administered by the Department of Business
and Economic Development.� The bill
establishes an application process for the transfer of tax benefits by
biotechnology companies under the Program.�
The bill requires that the Department evaluate applications under the
Program and also allows that that biotechnology companies may surrender tax
benefits in exchange for private financial assistance.
Effective
Date:� July 1, 2006
For more
information, please contact:� Bret
Schreiber
HB0984� Income Tax - Research and Development Tax Credit -
Modifications
House Bill 984 increases the aggregate amount of income
tax credits for Maryland qualified research and development expenses that may
be approved by the Department of Business and Economic Development each year
from $6,000,000 to $12,000,000.
Effective
Date:� July 1, 2006
For more
information, please contact:� Bret
Schreiber
HB1558� Business and Economic Development - Biotechnology
Investment Incentive Act
House Bill 1558 makes
several changes to the existing biotechnology investment tax credit as
described below:
- Imposes Eligibility Standards
for Investors: To be eligible, an applicant cannot own or control more
than 25% of the biotechnology company, be a director, officer, or manager
of the company, or be related within the meaning of Section 267(B) of the
Internal Revenue Code.� However,
after making an investment in a biotechnology company, an investor may not
own or control more than 20% of the company.
- Alters Maximum Credit Value:
The maximum proposed value of the credit for individuals is the lesser of
$100,000 or 10% of the total amount appropriated to the biotechnology
investment tax credit reserve fund, $500,000 or 20% for corporations, and
$1 million or 20% for venture capital firms. The bill, however, allows the
Department of Business and Economic Development (DBED) to adopt
regulations to allocate additional unsubscribed credits to any investor or
venture capital firm.
- Alters How the Credit is
Claimed: Under current law, the credit is refundable.� The bill eliminates the refundability of
the credit and requires that a taxpayer can claim the credit beginning in
the second tax year after the tax year in which a qualifying investment
was made. The credit can be claimed at a rate of one-third per tax year.
Any unused credit amount can be carried forward eight tax years.� The bill also repeals provisions
regarding the recapture of the credit. Instead, the bill provides that the
credit may be subject to recapture if the taxpayer does not submit
annually to DBED “information with respect to an investment and
regarding the continuing operations of the qualified Maryland
biotechnology company.” The bill does specify a process for
recapturing the credit. The bill also provides procedures for claiming the
credit by venture capital firms that are pass through entities.
- Administrative Aspects: DBED
and the Comptroller’s Office must adopt regulations that provide for
tax credit allocation in a fiscal year when either qualified applicants
apply for the credit at the same time and are together eligible for an
amount that exceeds the appropriation to the reserve fund in that year or
when tax credits become available because an applicant who was certified
is no longer eligible. DBED may not certify investments in a single
biotechnology company in a fiscal year that exceeds $2 million or 20% of
the total appropriations to the reserve fund.
Effective
Date:� July 1, 2006
For more
information, please contact:� Bret
Schreiber
Financial Aid
HB1303� Higher Education - Scholarship Program - Eagle Scouts
and Girl Scout Gold Award Recipients
House Bill 1303 will establish the Eagle Scout and
Girl Scout Gold Award recipient Scholarship Program.
Effective
Date:� July 1, 2006
For more
information, please contact:� Bret
Schreiber
HB1310� Higher Education - State Student Financial Assistance
- Eligibility
House Bill 1310 will prohibit the Office of Student
Financial Assistance (OSFA) from refusing to consider an application for State
student financial assistance simply because the student’s application for
federal student aid is denied. OSFA must implement a process to determine and
verify the reasons that a student’s federal application is denied and
ensure that students who are denied federal assistance are still considered for
State grants. For purposes of awarding State financial assistance, the process
must compare students whose federal aid applications are denied to students who
successfully file an application for federal student aid.
Effective
Date:� October 1, 2006
For more
information, please contact:� Bret
Schreiber
General Education
HB0651� Education - Public Charter Schools - Clarifications
House Bill 651 establishes a method to determine the
allocation of local school system funds to a public charter school and addresses
and clarifies other provisions of the Maryland Public Charter School Program.
Effective
Date:� July 1, 2006
For more
information, please contact:� Bret
Schreiber
SB0133� Income Tax - State and County Income Tax Credit for
New Teachers
Senate Bill 133 creates, subject to approval of a county
governing body, a tax credit against the State and local income tax for new
public school classroom teachers who: (1) are in their first or consecutive
second year of employment with the local school system; (2) reside in the
county in which they teach; and (3) have a standard or advanced professional
certificate. The amount of the credit may not exceed $1,200 or the tax
liability in the tax year. The bill takes effect June 1, 2006 and applies to
tax year 2007 and beyond.
Effective
Date:� June 1, 2006
For more
information, please contact:� Bret
Schreiber
Sb0572� Tobacco Tax - Revenues for Pension Enhancements for
State Employees and Teachers
Senate Bill 572 will alter the tobacco tax rates
imposed on tobacco products.� The bill
will require the Comptroller to distribute a portion of tobacco tax revenues to
a special fund to be used only to provide funding for pension enhancements for
State employees and teachers.
Effective
Date:� July 1, 2006
For more
information, please contact:� Bret
Schreiber
SB0576� Alcoholic Beverage Tax - Special Fund for Geographic
Cost of Education Index Adjustment
Senate Bill 576 will increase the State tax rates for
alcoholic beverages in Maryland from $1.50 to $4.50 per gallon for distilled
spirits, from 40 cents to $1.20 per gallon for wine, and from 9 cents to 27
cents per gallon for beer.� The bill
requires the Comptroller to distribute a portion of the alcoholic beverage tax
revenues to a special fund to be used only for funding the Geographic Cost of
Education Index adjustment.
Effective
Date:� July 1, 2006
For more
information, please contact:� Bret
Schreiber
Higher Education
HB1439� Education - Educational Technology Pilot Program -
Elementary Schools
House Bill 1439 will establish the Educational
Technology Pilot Program in Baltimore City and Dorchester, Prince George's,
Somerset, and St. Mary's counties.� The
bill requires the State Superintendent of Schools and specified organizations
to develop a plan to implement the Program in elementary schools.� The bill also calls for the creation of a
PILOT program to introduce elementary age students to computer technology and
to train teachers to integrate such technology into their curriculum.
Effective
Date:� October 1, 2006
For more
information, please contact:� Bret
Schreiber
HB1634� Institutions of Higher Education - Academic Programs
and Funding - Parity
House Bill 1634 will amend the Maryland Charter for
Higher Education to require specified funding policies to allocate State resources
comparably and equitably to similarly classified institutions of higher
education.� The bill requires the
Maryland Higher Education Commission to ensure that parity exists between
duplicate academic programs at institutions of higher education and that those
academic programs receive equitable and comparable funding
Effective
Date:� July 1, 2006
For more
information, please contact:� Bret
Schreiber
Miscellaneous
HB0800� Election Law - Voter Registration
House Bill 800 is an
emergency bill that will:
- allow a federal write-in
absentee ballot to be used for voter registration purposes if a voter is
authorized to vote a federal write-in absentee ballot under federal law;
- allow a local election director
to remove a voter from the statewide voter registration list if the local
board� determines, pursuant to the
administrative complaint process, that the voter is not qualified to be
registered;
- require a voter on the inactive
voter list to be restored to active status upon completing and signing an
absentee ballot application;
- allow a complaint to be filed
by a person who feels aggrieved by an action of the State Board of Elections
(SBE) regarding voter registration; and
- clarify that any final
determination in the administrative complaint process regarding an
individual’s eligibility to remain registered to vote as well as an
individual’s eligibility to register to vote, is subject to judicial
review.
Effective
Date:� Emergency Measure
For more
information, please contact:� Bret
Schreiber
HB1235� Department of Housing and Community Development -
Neighborhood and Community Assistance Program - Community Investment Tax Credit
House Bill 1235 expands the existing Neighborhood and
Community Assistance Tax Credit Program. The bill: (1) expands eligibility for
the tax credit to include real property contributions to qualifying projects;
(2) authorizes individuals and trusts to claim the credit; and (3) increases
the maximum value of the credit from $125,000 to $250,000.
Effective
Date:� October 1, 2006
For more
information, please contact:� Bret
Schreiber
SB1009� Income Tax Credits for Green Buildings - Additional
Credits Authorized
This bill states that an individual or business entity
entitled to claim a tax credit for green buildings and green building
components may transfer the entire amount of the credit allowed to an
individual or business entity. The individual or business entity must transfer
the entire amount of the credit and notify the Administration within 30 days
after the effective date of the transfer on a form that is approved by the
Comptroller.� An individual or business
entity to whom any credit is transferred may claim the credit against the state
income tax and is subject to the same requirements and limitations in claiming
the credit under this section that would have been applicable to the individual
or business entity that transferred the credit.
Effective
Date:� July 1, 2006
For more
information, please contact:� Nicole
Xander
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STAFF CONTACT INFORMATION
Please contact Government Relations if you have concerns or would like
additional information. Your input assists us greatly in evaluating and
formulating the position of Johns Hopkins on all legislation.
Legislative Session Office
410-269-0057
fax 410-269-1574
Heather Barthel�������������������� [email protected]
Mickey Geisler��������������������� [email protected]
Jessica Hendrix������������������� [email protected]
Sheila Higdon����������������������� [email protected]
Bret Schreiber���������������������� [email protected]
Tom Lewis���������������������������� [email protected]
Nicole
Xander���������������������� [email protected]
Cathy Ximenez��������������������� [email protected]
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Johns
Office of Government, Community and Public Affairs.