Legislative Report -- February 20, 2008

February 27: Save Maryland IT Day
Join us in Annapolis on February 27 for Save Maryland IT Day, a media event and lobbying day to advocate the repeal of the computer services sales tax.

This tax will impact nearly every business -- large and small -- in Maryland. Whether your company is a user or provider of IT services, this tax will have a negative impact on your competitiveness. Taxing computer services will stifle economic development and job creation in Maryland.

Unless repealed, the 6 percent computer services sales tax will take effect on July 1. We need you in Annapolis on February 27 to tell your story to the media and to lawmakers.

The event will begin at 10:30 a.m. at the Maryland Inn on Church Circle in Annapolis. We will hold a media briefing featuring a number of CEOs at 11 a.m. We'll also hear from some legislators who support the repeal of the tech tax at 11:30 a.m. Following the briefing, we will walk over to the House and Senate office buildings to urge lawmakers to repeal the tax.

If you’d like to participate, please contact Will Burns at (410) 269-0642, (301) 261-2858 or wburns@mdchamber.org.

Reminder: If you plan to attend, call your legislators and try to make appointments to meet with them before 10 a.m. or after 12 p.m.

Action Needed: Repeal the Computer Services Sales Tax
The computer services sales tax, which will take effect July 1, will impact nearly every business throughout Maryland. Regardless of your company’s size, location or industry, if you use computer services in Maryland, this bill will impact your bottom line.

We need to ensure lawmakers are hearing form impacted business people. Contact your legislators today and urge them to repeal the computer services sales tax. This law will harm Maryland’s economy and damage the state’s competitive posture.

To learn more and take action, visit www.mdchamber.org/techtax.

MD Chamber Opposes Unrealistic Global Warming Bill
The Maryland Chamber of Commerce testified yesterday before the Senate Education Health and Environmental Affairs Committee in opposition to SB 309 - Global Warming Solutions - Reductions in Greenhouse Gases.

This bill would require Maryland to reduce greenhouse gas (GHG) emissions by 25 percent by 2020, and 90 percent by 2050 - the strongest mandate in the country. Passage would require Marylanders and Maryland businesses to make major changes in their daily lives and operations by driving 1/3 less and consuming 1/3 less electricity.

Maryland’s man-made GHG emissions comprise approximately 1.5% of the United States’ emissions and a very small percentage of the world’s total emissions. Since GHG emissions disperse globally and Maryland’s emissions are a very small percentage of the total global problem, this issue needs to be addressed on a national level in concert with international efforts.

“It is impossible for a small state, such as Maryland, to achieve a reduction goal as large as the 25 percent by 2020, and 90 percent by 2050,” said Maryland Chamber Vice President of Government Affairs Allyson Black. “This legislation is counterproductive, and would make it extremely difficult for businesses to survive.”

Several Maryland Chamber members testified in opposition to SB 309, including Maryland Industrial Technology Alliance, Maryland Petroleum Council, Redland Brick, Inc., NewPage, Allegheny Energy, Mirant Mid-Atlantic, Constellation Energy and ArcelorMittall.

For more information, contact Allyson Black at ablack@mdchamber.org.

Prevailing Wage Bill is a Bad Idea
Maryland Chamber Vice President of Government Affairs Ron Wineholt testified last week in opposition to HB 970 – Procurement – Prevailing Wage. This legislation would require contractors working on state or local public works projects that cost more than $500,000 and use any state funds to pay a state-determined wage level to their employees.

Current law applies this prevailing wage to projects funded with at least 50 percent state funds. This bill would make the prevailing wage applicable on projects that use any state funds.

Studies by the Department of Legislative Services in 1989 and 1995 determined that the prevailing wage law inflated the cost of public works projects by 5 to 15 percent. “The prevailing wage law undermines the competitive bidding process by requiring projects using state funds to pay a higher labor price than would be required through market based competitive bidding,” Wineholt said. “At a time when Maryland needs to build more schools, this bill will cause us to build less.”

To view the Chamber’s complete position statement, click here. For more information, contact Ron Wineholt at rwineholt@mdchamber.org.

Preparing for BRAC
The Maryland Chamber today submitted testimony in support of Administration legislation, HB 366, to establish up to six BRAC Revitalization and Investment zones annually upon application of county governments.

The zones would provide individual income tax and property tax credits for businesses that locate of expand in designated areas – similar to the enterprise zone program that has been an effective means for revitalizing areas in the state.

It is important to establish these job incentives so that the state receives the support services and jobs that could come with the direct BRAC jobs. The state has investment hurdles to overcome for these ancillary jobs, including high wage levels, high real estate costs and the looming sales tax on computer services. The incentives in this bill will help to overcome some of those costs of business, while directing growth into priority funding areas.

For more information, contact Ron Wineholt at rwineholt@mdchamber.org.

More Information on False Claims Legislation
Last month, the Maryland Chamber testified in opposition to legislation, SB 215 and HB 292, which would establish additional penalties for the filing of a false claim for state benefits and contracts. The bills would also authorize a person to file suit on behalf of the state for an alleged false claim for state benefits and contracts and recover up to 30 percent of the proceeds of the suit, plus attorney fees and costs.

The Maryland Chamber believes that state should directly prosecute any person who defrauds the state under a benefit program or contract. However, we believe it is inappropriate for the state to create a new private cause of action for the enforcement of state fraud statutes. This type of system will lead to needless litigation and harassment of government contractors by overzealous trial lawyers.

Similar legislation, SB 845, will be heard by the Senate Judicial Proceedings Committee on March 18. If you’d like to learn more about this issue, you can download a useful backgrounder here (pdf), or contact Ron Wineholt at rwineholt@mdchamber.org.

Upcoming Committee Meetings

February 21, 2008
Environment Committee
MD Chamber of Commerce
60 West Street, Suite 100, Annapolis, MD 21401
8:30 a.m.

February 25, 2008
Legislative Committee
MD Chamber of Commerce
60 West Street, Suite 100, Annapolis, MD 21401
3 p.m.

Upcoming Events

March 5, 2008
Membership Drive Kickoff Event
Sports Legends Museum at Camden Yards
301 W. Camden Street
Baltimore, MD 21230
5:30 p.m.

April 22 , 2008
Annual Membership Meeting & Business Hall of Fame Awards Dinner
Hyatt Regency Baltimore
300 Light St.
Baltimore, MD 21202