Legislative Report -- April 2, 2008
Senate Committee May Vote on Tech Tax Repeal Today
The Senate Budget & Taxation Committee could vote on a plan to repeal the computer services sales tax as early as today. Lawmakers have been struggling to build consensus for a plan to offset the $200 million the tax would reportedly generate.
Senate President Mike Miller polled members of the Senate yesterday afternoon to get a sense of where they stand on issues like cuts to transportation funding, additional taxes and cuts to the budget.
Governor Martin O’Malley has proposed a plan that would repeal the computer services sales tax and offset the repeal by increasing in the income tax for people earning more than $1 million, diverting some funding for transportation projects and requiring additional budget cuts.
The Maryland Chamber continues to advocate the repeal of the tech tax because the tax would stifle economic development and job creation in Maryland. We’ve encouraged lawmakers to offset the tax with additional budget cuts. The Chamber strongly opposes additional income tax increases and transfers from the Transportation Trust Fund.
Oppose Government-Mandated Breaks
Contact your legislators today and urge them to oppose HB 654. This is the Maryland General Assembly’s latest attempt to mandate private sector benefits. This one-size-fits-all approach to shift break, already offered by most employers, would create administrative burdens for the private sector employers.
The House Economic Matters Committee approved an amended version of HB 654 – Labor and Employment – Shift Breaks. As amended, the bill would require employers to provide a 15-minute nonworking shift break for four to six consecutive hours of work, or a 30-minute nonworking shift break for more than six consecutive hours.
As amended, the bill would also apply to units of state government. Requirements do not apply to employers with fewer than 50 employees or employees who are otherwise covered under collective bargaining agreements. The bill now would allow the Commissioner of Labor and Industry, by regulation, to exempt certain employers from one or more of the benefits provided in the bill.
The Maryland Chamber opposes this legislation. The bill constitutes an unwarranted and unnecessary legislative intrusion into the employer-employee relationship.
This legislation would not allow for flexibility in the workplace. Maryland employers desire flexibility to ensure a consistent level of customer service during busy periods. In addition, there may be times where unforeseen circumstances or a crisis in the workplace may require employees to work for longer than five consecutive hours. Again, this bill would not allow for that circumstance.
For more information or to contact your Delegates, click here.
Market Share Liability Bill Defeated
The Maryland Chamber is pleased that the House Judiciary Committee voted down legislation that would have drastically altered 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 bill, HB 1241, would have allowed 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. It would have allowed 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.
HB 1241 ignored the fact that property owners are 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 attempted to create liability for companies that may have had no connection to the actual lead paint problem.
The Maryland Chamber strongly opposed the bill. Passage of this legislation would have unfairly exposed Maryland businesses to large claims for damages. It would have further detracted from the State’s competitive business climate.
To see how the committee voted, click here (pdf).
Greenhouse Gases Bill to be Heard in the House Today
The House Environmental Matters Committee will hear SB 309 today. This bill, which was passed by the Senate earlier this session, would mandate a 25 percent reduction in greenhouse gas emissions by 2020. It also sets a goal of a 90 percent reduction by 2050.
The Maryland Chamber opposed this legislation because it is overly ambitious and unachievable. Reducing greenhouse gas emissions is a national and global issue. State-specific action could place Maryland businesses at a competitive disadvantage.
While the Maryland Chamber opposes the bill, we supported an amendment adopted on the Senate floor. As amended, the bill states that the Maryland Department of the Environment may not implement new emissions reduction measures until the Maryland General Assembly enacts legislation specifically authorizing the new measures.
This amendment is important because it will require the legislature’s approval before new MDE initiatives take effect. This will ensure the business community has adequate opportunity to educate lawmakers on the business impact of additional CO2 reduction requirements.
As originally drafted, the bill required MDE to report its plans to the General Assembly for review, but not for approval.
For more information, contact Allyson Black at ablack@mdchamber.org.
Senate Passes Bill to Clarify Wage Payment On Termination
The Maryland Senate unanimously passed legislation to correct a recent change in Maryland law regarding the payment of unused leave time to employees upon termination.
The bill, SB 797, was introduced by Senators John Astle (D-Dist. 30) and Allan H. Kittleman (R-Dist. 9) at the Maryland Chamber’s request.
As a result of an unpublished Court of Special Appeals decision, and a change in the Department of Labor, Licensing and Regulation’s (DLLR) position, Maryland employers are now required to pay out all unused vacation leave to employees upon termination, regardless of what the employer’s written policy states about payment of leave to employees upon termination. This is a complete reversal of established Maryland law.
For years, it was DLLR’s policy that payment of unused leave upon termination depends on the employer’s policy and whether the policy has been communicated to employees in advance. In November 2007, DLLR revised it’s policy to state, “When an employee has earned or accrued his or her leave in exchange for work, an employee has a right to be compensated for unused leave upon the termination of his or her employment regardless of the employer’s policy or language in the employee handbook.”
SB 797 is corrective legislation that restores the law to its pre-November 2007 state. The bill clarifies that if an employer has a written policy regarding the payment of the accrued leave, and this policy is communicated to the employee prior to the termination of employment, the employer must pay accrued leave to an employee only if the employee is entitled to the leave under the terms of the written policy.
For more information, contact Allyson Black at ablack@mdchamber.org.
A Regretful Ending for the Apology Bill
Legislation that would have altered the evidentiary rule concerning apologies or expressions of regret in a medical malpractice liability case was defeated in the House Judiciary Committee. HB 607 would have allowed a health care provider to make an apology to a victim, or a member of a victim’s family, without fear of the statement being used as evidence in a malpractice case.
The Maryland Chamber supported this bill, which would have increased the likelihood of meaningful dialogue between health care providers and patients who have experienced bad outcomes from medical procedures. Such dialogue could have led to a better understand exactly what occurred during the procedure, and may have resulted in fewer medical malpractice suits being filed.
View the Judiciary Committee’s vote on HB 607, click here (pdf).
Bill to Repeal Annual Noneconomic Damage Increase Defeated
The House Judiciary Committee defeated HB 606, which would have repealed the $15,000 annual increase in the cap on noneconomic damages that may be awarded in a health care malpractice claim.
The Maryland Chamber of Commerce supported this bill, which would have stopped the annual increases in the noneconomic damage cap that are scheduled to resume in 2009. 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.
Access to health care is vitally important to Maryland businesses as employers, health care institutions, and users of health care. The General Assembly’s efforts at the 2004 special session were a stop-gap measure that must be further refined. The Maryland chamber strongly believes that additional meaningful reforms to the calculation of medical liability damages are necessary in order to reduce the cost of liability insurance. To view the committee’s vote, click here (pdf).
Maryland Chamber to Present Health Insurance Forums
Insurance premiums for traditional health insurance plans are rising drastically each year. There are alternatives on the market for small employer groups to cut their costs and put cash back into their pockets.
Attend one of the Maryland Chamber’s upcoming Health Insurance Forums to learn more. Our panel of experts will discuss alternative options for small and medium-size employers (10-100 employees), including HSA and HRA plans, Federal Alternative Funding Plans and Traditional Insurance Plans. Panelists include:
- David Cardwell, Sr., President, Direct Sales, GBS HR & Benefit Solutions
- Darryl Bodnar, CPA, Naden/Lean, LLC
- Kevin Vail, Manager, Provident Bank
Upcoming events include April 30 in Hunt Valley, May 14 in Lutherville, and May 28 in Rockville. All forums will begin at 9 a.m. and end at 11 a.m. Registration is $15 for Maryland Chamber members and $30 for nonmembers. For more information, visit www.mdchamber.org/smallbusiness.
This program is being presented by the Maryland Chamber’s Business Development Council and is being sponsored by Verizon Wireless.
Upcoming Events
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.
Dates
April 30, 2008
GBS HR & Benefit Solutions
6 North Park Drive, Suite 310
Hunt Valley MD 21030
RSVP by April 21
Register
May 14, 2008
GBS HR & Benefit Solutions
1301 York Road, Suite 400
Lutherville MD 21093
RSVP by May 5
Register
May 28, 2008
GBS HR & Benefit Solutions
2400 Research Blvd, Suite 420
Rockville MD 20850
RSVP by May 19
Register
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