Legislative Report -- March 5, 2008

March 12: Rally in Annapolis to Repeal the Tech Tax
Join us for a rally in Annapolis on March 12 to help send lawmakers a clear message. The tech tax is a threat to jobs and Maryland’s future. It must be repealed!

The future of Maryland’s high tech knowledge economy and workforce are on the line. We need hundreds of business people to turn out. The rally will be held at Lawyer’s Mall in front of the State House – at the intersection of Bladen Street and College Avenue in Annapolis. We’ll begin at 9:30 a.m.

Please help us spread the word. Tell your employees, colleagues and clients. Any industry that relies on computer services to drive innovation and growth will be hit by a 6 percent sales tax on these critical services. Industries like financial services, health care, bioscience, and government contacting will all be harmed unless the tax is repealed by April 7. For more information, contact Will Burns at wburns@mdchamber.org.

March 11: Join us For a Tech Tax Discussion in Baltimore
Learn more about how the computer services sales tax will impact your company on March 11 in Baltimore. Whiteford, Taylor & Preston LLP and Watkins, Meegan, Drury & Company LLC will host a lively discussion about the tech tax and its implications at 3:30 p.m. at 7 Saint Paul Street in Baltimore, 19th floor.

The event will be moderated by Heather A. James, Esq., Chair of WTP’s Government Contracts Section, and will feature remarks by Herman B. Rosenthal, Esq., Chair of WTP’s Tax Section; Tom Loveland, CEO of Mind Over Machines and President of the Maryland Computer Services Association; Michael T. Dillon, Esq., Director of State and Local Tax for Watkins, Meegan, Drury & Company LLC, and a member of Fight the Tech Tax; and Karen T. Syrylo, CPA, the Maryland Chamber of Commerce’s State Taxation Consultant.

An informal Q&A session will follow the presentations and the event will conclude with a networking reception. Over 100 individuals from the technology, corporate, and banking sector are expected to attend. RSVP to dhill@wtplaw.com.

Topics to be discussed include:

• Vitals Check: status of the Computer Services Tax and legislation designed to revise, limit or repeal it;
• A Balancing Act: proposed impact on Maryland’s tech companies and growth of the tech sector;
• Read the Fine Print: tax implications for every Marylander, from owners of home computers to subcontractors under government contracts;
• Eleventh Hour Planning: preparations that may help your government contracting company manage the impact of the tax;
• Fight v. Flight: expanding operations to another state may not save you from the tax; and
• Calling Out: tips for becoming involved in the growing anti-Computer Services Tax movement.

Urge Your Lawmakers to Support Changes to Corporate Reporting Requirements
We need your voices. During the November 2007 special session, the General Assembly passed legislation that imposes extensive new reporting requirements on corporations. The Maryland Chamber is strongly supporting SB 444/HB 664, legislation that would reduce the most onerous and unnecessary aspects of the reporting requirements.

SB 444 and HB 664 will be heard on Wednesday, March 12. Legislators need to hear from impacted businesses. Contact your legislators and tell them that the current requirements create impossible and unnecessary burdens in time and cost. No other state imposes reporting requirements that are this extensive.

If you want to learn more about the Chamber’s efforts, contact Karen Syrylo, CPA at ksyrylo@mdchamber.org. For more information and to take action, click here.

MD Chamber Opposes Market Share Liability Bill
The Maryland Chamber will testify today in opposition to legislation that would drastically alter Maryland’s tort laws by imposing a variation of market share liability. This legal theory is fundamentally unfair, because it severs the need for a person claiming injury to demonstrate that a defendant caused the injury.

The legislation, HB 1241, will be heard in the House Judiciary Committee. The bill would allow an individual to sue companies that formerly manufactured lead pigment in lead-based paint for the cost of abating lead based hazards on their property.

In addition to being an unfair change to Maryland tort law, the bill allows for joint and several liability for manufacturers that are sued for damages. Therefore, a company that may have had little lead paint product in the market could be responsible for paying all of the damages in an award.

The bill ignores the fact that a property owner is responsible for maintaining their property and must not allow it to be a hazard to their tenants or neighbors. In relieving property owners of their responsibilities, it attempts to create liability for companies that may have had no connection to the actual lead paint problem.

“Passage of this legislation would unfairly expose Maryland businesses to large claims for damages and further detract from the State’s competitive business climate,” Maryland Chamber Vice President of Government Affairs Ron Wineholt said.

Medical Liability Bills Heard Today
The Maryland Chamber of Commerce submitted testimony today to the House Judiciary Committee on three bills dealing with the issue of medical liability. As outlined in the Business Agenda, the Maryland Chamber supports meaningful reforms to civil liability law that will help reduce defensive medicine and moderate medical liability insurance rates. Here’s an overview of the three bills that were considered today:

HB 606 - Health Care Liability – Noneconomic Damages: This bill would repeal the $15,000 annual increase in the cap on noneconomic damages that may be awarded in a health care malpractice claim. The Maryland Chamber supports this bill. During the 2004 special session, the General Assembly wisely stopped for four years further growth in the cap on noneconomic damages. At $650,000, Maryland’s noneconomic damage award cap is already one of the highest in the country. Further escalation in this cap would simply increase noneconomic damage awards and fuel further increases to high medical liability insurance rates that are threatening access to certain medical specialties.

HB 607 - Health Care Malpractice – Expression of Regret or Apology - Inadmissibility: This bill would provide that an expression of regret by a health care provider is inadmissible as evidence in civil actions or arbitration proceedings. The chamber supports this bill because it would increase the likelihood of meaningful dialogue between health care providers and patients who have experienced bad outcomes from medical procedures. We feel that this dialogue is important for patients to better understand exactly what occurred during the procedure, and may result in fewer medical malpractice suits being filed.

HB 969 - Health Care Malpractice - Death – Noneconomic Damages: This bill would increase the cap on noneconomic damages that may be awarded in a survival action and wrongful death action concerning a health care malpractice claim. The Maryland Chamber opposes this bill. During the 2004 special session the General Assembly wisely reduced the cap on noneconomic damages for cases involving a survival action and a wrongful death action from a “double cap” to a limit of 125% of the individual limit. Further escalation in this cap would fuel further increases to high medical liability insurance rates.

MD Chamber Opposes Discriminatory Property Tax Changes
The Maryland Chamber was joined last week by a number of pro-business representatives in opposing legislation that would authorize counties to impose discriminatory levels of taxation on business property.

The legislation, HB 676, was heard by the House Ways & Means Committee. The Senate companion bill, SB 561, will be heard by the Senate Budget & Taxation Committee on March 13. Defeating this legislation is a 2008 Maryland Chamber priority.

“A minority of states authorize local government to impose differential tax rates on varying classes of property. Such laws always result in local governments imposing discriminatory and burdensome levels of taxation on business property, sometimes at levels two to three times the level for residential property,” said Ron Wineholt, the Maryland Chamber Vice President of Government Affairs.

The hearing went well, but we must keep the pressure on. Contact your legislators today and urge them to oppose SB 561/HB 676. For more information or to take action, click here.

Upcoming Committee Meetings

March 10, 2008
Legislative Committee
MD Chamber of Commerce
60 West Street, Suite 100, Annapolis, MD 21401
3 p.m.

March 13, 2008
Environment Committee
MD Chamber of Commerce
60 West Street, Suite 100, Annapolis, MD 21401
8:30 a.m.

Upcoming Events

April 2, 2008
Chamber 101
Sheraton Annapolis Hotel
173 Jennifer Rd.
Annapolis, MD 21401
8 a.m.

April 22, 2008
Annual Membership Meeting &
Business Hall of Fame Awards Dinner
Hyatt Regency Baltimore
300 Light St
Baltimore, MD 21202
5:30 p.m.