2020 End of Session Wrap Up

Senator Addie Eckardt, District 37 End of Session Wrap Up March 20, 2020

For the first time since the Civil War, the Maryland General Assembly adjourned early on March 18, 2020 due to the spread of COVID-19. Under the guidance of Senate President Bill Ferguson and Speaker of the House Adrienne A. Jones, the Maryland General Assembly adjourned with a plan to reconvene for a special session in the last week of May. I would like to thank Senate President Ferguson, Speaker Jones, and Governor Larry Hogan for their leadership and commitment to the State of Maryland during this State of Emergency.  Despite the early adjournment, I want to thank those who participated in making this year’s legislative year so successful. A big thank you to all of those who came to testify and sent in testimony for this year’s bills; it is important that all Marylanders continue to have a voice in the Legislative session. Even in this time of emergency and shortened legislative session, the Maryland General Assembly was able to work together in a bipartisan fashion on a number of important policy initiatives to benefit residents across Maryland.  Below, please find a summary of key legislation that I sponsored or supported, as well as other bills of interest from this legislative session. During the interim, please do not hesitate to reach out to my office should you have any questions about recent or future legislation. Fiscal Year 2021 Operating Budget Again, I am proud to serve on the Senate Budget and Taxation Committee to help allocate funding for the final FY 2021 budget, a product of compromise between both parties, the Governor, and the legislature.  The budget leaves a general fund balance of at least $100 million and eliminates the structural shortfall for fiscal year 2021. In addition, the budget leaves a fund balance of $129.1 million and produces a structural surplus of $29 million. The budget leaves $1.2 billion in the Rainy Day Fund and $129.1 million in the general fund. Growth was limited to .6% ($113.1 million). Support for public schools exceeds $7.2 billion and direct aid increases 3.7% ($230.3 million). The budget includes $362 million for the Kirwan Commission. Support for public colleges and universities grows by 2% ($65.2 million) which caps undergraduate tuition increases at 2%. The budget provides $18.2 million in aid for community colleges and funding for community colleges increases by 11% ($36.6 million). The budget allows the State to cover 1.4 million of our residents in medicaid ($11.9 billion). The budget also funds the Baltimore Symphony Orchestra, Maryland Public Television, and economic development projects. We were able to maintain the 4% rate increases for providers serving the developmentally disabled and those with behavioral health needs. Rate increases of 2% are funded for human service providers. State employees will receive a 2% general salary increase effective January 1, 2021. Law enforcement officers will receive a 5% increase effective July 1, 2020.

Local Initiatives in the Capital Budget

Senator Eckardt’s 2020 Passed Sponsored and Co-Sponsored Legislation Senate Bill 100: Dorchester County - Alcoholic Beverages - Class C Beer, Wine, and Liquor License authorizes the Board of License Commissioners for Dorchester County, rather than the Dorchester County Council, to issue a Class C beer, wine, and liquor license and alters the authorized holders of the license to include a nonprofit organization operating at Governors Hall at Sailwinds Park. Senate Bill 103: Health Occupations - Diagnostic Evaluation and Treatment of Patients - Disciplinary Actions (The Patient's Access to Integrative Healthcare Act of 2020) prohibits health occupation boards from disciplining integrative physicians solely based on their use of integrative treatments. The bill protects our integrative physicians and their patients that benefit from this treatment, especially Lyme’s patients. Senate Bill 121: Sales and Use Tax - Aircraft Parts and Equipment - Exemption exempts from the State sales and use tax the sale of materials, parts, or equipment used to repair, maintain, or upgrade aircraft or the avionics systems of aircraft if installed on an aircraft that has (1) a maximum gross takeoff weight of less than 12,500 pounds or (2) a maximum gross takeoff weight of 12,500 pounds or more and is primarily used in interstate or foreign commerce. House Bill 1035 (Senate Bill 495): Bay Restoration Fund - Use of Funds - Municipal Wastewater Facilities expands the authorized uses of the Bay Restoration Fund’s (BRF) Septics Account to include specified costs associated with connecting a property using a septic system to an existing municipal wastewater facility that has signed a funding agreement with the Maryland Department of the Environment (MDE) and is under construction to achieve, enhanced nutrient removal (ENR) or biological nutrient removal (BNR) level treatment. This bill will help connect failing septic systems to municipal wastewater treatment facilities Senate Bill 576: Health Occupations - Nurse Practitioners - Certifications of Competency and Incapacity authorizes a nurse practitioner who has examined a disabled person to be one of the two health care practitioners who may sign a certificate of competency for a petition for guardianship of a disabled person. The bill also authorizes a nurse practitioner to be one of the two health care practitioners permitted, under specified circumstances, to certify that a patient is (1) incapable of making an informed decision regarding specified treatment or (2) in a terminal condition or has an end-stage condition. House Bill 999 (Senate Bill 540): Member-Regulated Cooperatives - Establishment (Rural Broadband for the Eastern Shore Act of 2020) establishes a process for an electric cooperative to operate as a member-regulated cooperative. A member-regulated cooperative may provide broadband internet access to its members. This can be done through a vote by members or the pursuit of an expedited affiliate waiver from the public service commission. This bill will allow Choptank Electric to begin offering broadband to rural customers, so long as they become a member-regulated cooperative.   Important Legislation of 2020:   Below are important and notable pieces of legislation that passed this session. COVID-19  Senate Bill 1080: State Government – State of Emergency and Catastrophic Health Emergency – Authority of Governor and Unemployment Insurance Benefits (COVID–19 Public Health Emergency Protection Act of 2020) authorizes the Governor, for the duration of the emergency, to take specified actions relating to health insurance, Medicaid, retailer profits, employer actions, and personnel at State health care facilities as a result of the March 5, 2020 proclamation declaring a state of emergency and the existence of a catastrophic health emergency (or any other specified proclamation related to the outbreak of “COVID-19”). The bill also authorizes the Secretary of Labor to determine that an individual is eligible for unemployment insurance (UI) benefits under specified circumstances due to COVID-19.   Schools and Education House Bill 1300: Blueprint for Maryland’s Future - Implementation (Kirwan) substantially alters State aid and State policy for public schools known as the Blueprint for Maryland’s Future. The bill establishes in law the policies and accountability recommendations of the Commission on Innovation and Excellence in Education, including creation of a new Accountability and Implementation Board to oversee implementation of the policies and funding provided under the Blueprint. We had significant concerns regarding Kirwan, however it was amended with an emphasis on outcomes and accountability. In addition, the bill includes aspects to ensure that teachers can control classroom environments and provides behavioral and mental health resources. The bill includes an annual review to see if funds are available and a five year review to confirm that outcomes are improving. These reviews will give the legislature a chance to decide if the program should proceed. We will continue to examine funding mechanisms and work on reducing the burden on counties. The bill is already funded for the first two years. House Bill 1: Built to Learn Act of 2020 authorizes the Maryland Stadium Authority (MSA) to issue up to $2.2 billion in revenue bonds, backed by annual payments from the Education Trust Fund (ETF), for public construction in the State. This bill codifies the ETF lockbox. House Bill 617: Public and Nonpublic Schools - Medical Cannabis - Policy for Administration During School Hours and Events (Connor and Raina's Law) requires the Maryland State Department of Education (MSDE) and the Natalie M. LaPrade Medical Cannabis Commission to jointly develop guidelines for public schools allowing the administration of medical cannabis during school hours, school-sponsored activities, and while on a school bus to students who are qualifying patients. Public Safety Senate Bill 156: Handgun Qualification License - Training Requirement - Exemption which exempts active or retired correctional officers, sheriffs, or deputy sheriffs from completing firearm safety courses for a handgun license. These individuals are exempt so long as they completed an initial correctional officer, sheriff, or deputy sheriff firearms training course approved by the Secretary of State Police. Senate Bill 347: Public Safety - Certification of Police Officers specifies that employment by a business licensed as a medical cannabis dispensary, grower, or processor does not constitute involvement in the illegal distribution, production, cultivation, transportation, or sale of a controlled dangerous substance (CDS) for purposes of police officer certification or recertification. Health Care        Senate Bill 915: Maryland Insurance Administration - Pharmacy Services Administrative Organizations - Regulation requires a “pharmacy services administrative organization” (PSAO) to register with the Insurance Commissioner. PSAO’s negotiate reimbursement rates and payments for thousands of independent pharmacies. This bill will allow the State to provide oversight on these organizations. Senate Bill 402: Health Care Practitioners – Telehealth and Shortage authorizes a health care practitioner to establish a practitioner-patient relationship through a telehealth interaction under specified circumstances.   Veterans & First Responders Senate Bill 488: Income Tax - Subtraction Modification - Military and Public Safety Retirement Income increases the subtraction modification for Maryland income tax to $20,000 for military retirement income for those at least 55 years old. In addition, the bill increases the subtraction modification to $20,000 for first responders aged 55 and older. Senate Bill 25: Hunting and Fishing Licenses - Active Military, Former Prisoners of War, Recipients of the Purple Heart Award, and Disabled Veterans makes permanent the ability of the Department of Natural Resources (DNR) to extend complimentary fishing privileges to former prisoners of war and service-disabled veterans. Other Topics of Interest Senate Bill 4:  Gaming - Sports Betting - Implementation authorizes sports betting in the State, pending a constitutional referendum. Revenue from sports betting will be used primarily for education, including funding the Blueprint for Maryland’s future.  House Bill 737: Local Governments - Income Tax Disparity Grants - Amounts raises State funding provided under the disparity grant program. This bill will help our local counties that receive disparity grants, to receive higher State funding.  Senate Bill 523: Income Tax – Pass–Through Entities and Corporations authorizes a pass-through entity (PTE) to elect to be taxed at the entity level for  the income tax. This bill will restore the federal income tax deduction to individuals and PTE’s when filing their federal income tax return. This bill will ease tax burdens on our small businesses Opposed Legislation Below is legislation that I opposed, but passed this session. We will continue to work to protect the 2nd amendment rights of our constituents and oppose placing undue burdens on our law-abiding gun owners. In addition, we will work to prevent tax increases that will impact our small businesses and everyday Marylanders. House Bill 4: Public Safety – Rifles and Shotguns – Sales, Rentals, and Transfers requires, with specified exceptions, that a licensed firearms dealer facilitate the “transfer” of a rifle or shotgun. “Transfer” means a sale, a rental, a furnishing, a gift, a loan, or any other delivery, with or without consideration. A dealer may charge a reasonable fee for facilitating a transfer of a rifle or shotgun. A person who violates the bill may face up to 5 years imprisonment and up to a $10,000 fine.  House Bill 732: Taxation – Tobacco Tax, Sales and Use Tax, and Digital Advertising Gross Revenues Tax increases the tobacco tax rate from $2.00 to $4.00 per pack of cigarettes; (2) generally increases the other tobacco products (OTP) tax rate from 30% to 86% of the wholesale price; (3) imposes an electronic smoking device (ESD) tax equal to 86% of the wholesale price; (4) requires the Governor to include at least $21 million in annual funding for the Tobacco Use Prevention and Cessation Program; (5) removes the prohibition from local governments imposing a tax on OTP and cigarettes; and (6) alters the definitions of electronic smoking devices and OTP