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90 Day Report, a Review of the 2000 Legislative Session

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90 Day Report, a Review of the 2000 Legislative Session The 90 Day Report A Review of the 2000 Legislative Session Department of Legislative Services Office of the Executive Director Maryland General Assembly April 14, 2000 Honorable Thomas V. Mike Miller, Jr., President of the Senate Honorable Casper R. Taylor, Jr., Speaker of the House of Delegates Honorable Members of the General Assembly Ladies and Gentlemen: I am pleased to present you with The 90 Day Report - A Review of Legislation in the 2000 Session. The 90 Day Report consists of two volumes. Volume I is divided into 13 parts, each dealing with a major policy area. Each part contains a discussion of the majority of bills passed in that policy area, including comparisons with previous sessions and current law, background information, and a discussion of significant bills that did not pass. Information relating to the Operating Budget, Capital Budget, and aid to local governments is found in Part A of this volume. Volume II, organized in the same manner as Volume I, consists of a list of all bills passed and a short synopsis stating the purpose of each bill. As was the case last year, The 90 Day Report is being provided to you in loose-leaf format to make it easier to copy and use parts of the report. The binders provided last year were designed to hold the most recent edition of The 90 Day Report; please use the binder provided last year for this year's report. Should you also wish to have a bound version of the Report, please contact my office. I hope that you will find The 90 Day Report as helpful this year as you have in the past. Further, the Department of Legislative Services will make available the Fact Book and Citizen's Tax Guide shortly. The Effects of the 2000 Legislative Program on the Financial Condition of the State will be issued after the Governor has taken final action on all bills. Sincerely, Karl S. Aro Executive Director VOLUME I VOLUME II Major Policy Discussions Synopsis of Passed Bills MAJOR ISSUES Part A Part A - BUDGETS AND STATE AID BUDGETS AND STATE AID OPERATING BUDGET Part B CAPITAL BUDGET OVERVIEW OF STATE ASSISTANCE TO LOCAL TAXES GOVERNMENTS Part C Part B -TAXES STATE GOVERNMENT PROPERTY TAX LOCAL PROPERTY TAXES Part D INCOME TAX SALES TAX LOCAL GOVERNMENT MISCELLANEOUS TAXES Part E Part C - STATE GOVERNMENT CRIMES, CORRECTIONS, AND PUBLIC STATE AGENCIES, OFFICES, AND OFFICIALS SAFETY ELECTIONS ETHICS Part F PROCUREMENT REGULATIONS AND ADMINISTRATIVE COURTS AND CIVIL PROCEEDING PROCEDURE ACT PERSONNEL Part G PENSIONS AND RETIREMENT TRANSPORTATION AND MOTOR GENERAL ASSEMBLY VEHICLES Part D - LOCAL GOVERNMENT Part H LOCAL GOVERNMENT - GENERALLY BUSINESS AND ECONOMIC ISSUES MUNICIPAL GOVERNMENTS BI-COUNTY AGENCIES Part I Part E - CRIMES, CORRECTIONS, AND PUBLIC FINANCIAL INSTITUTIONS, SAFETY COMMERCIAL LAW, AND CORPORATIONS CRIMINAL LAW BALTIMORE CITY CRIMINAL JUSTICE SYSTEM Part J CRIMINAL PROCEDURE JUVENILE LAW HEALTH PUBLIC SAFETY Part K Part F - COURTS AND CIVIL PROCEEDINGS NATURAL RESOURCES, ENVIRONMENT, JUDGES AND COURT ADMINISTRATION AND AGRICULTURE CIVIL ACTIONS AND PROCEDURES FAMILY LAW Part L HUMAN RELATIONS REAL PROPERTY EDUCATION ESTATES AND TRUSTS Part M Part G - TRANSPORTATION AND MOTOR VEHICLES HUMAN RESOURCES TRANSPORTATION MOTOR VEHICLES Part H - BUSINESS AND ECONOMIC ISSUES BUSINESS OCCUPATIONS BUSINESS REGULATION PUBLIC SERVICE COMPANIES INSURANCE HORSE RACING AND GAMING ECONOMIC AND COMMUNITY DEVELOPMENT WORKERS' COMPENSATION UNEMPLOYMENT INSURANCE LABOR AND INDUSTRY ALCOHOLIC BEVERAGES Part I - FINANCIAL INSTITUTIONS, COMMERCIAL LAW, AND CORPORATIONS FINANCIAL INSTITUTIONS COMMERCIAL LAW CORPORATIONS AND ASSOCIATIONS Part J - HEALTH PUBLIC HEALTH - GENERALLY HEALTH OCCUPATIONS HEALTH CARE FACILITIES AND REGULATION HEALTH MAINTENANCE ORGANIZATIONS HEALTH INSURANCE Part K - NATURAL RESOURCES, ENVIRONMENT, AND AGRICULTURE NATURAL RESOURCES - GENERALLY HUNTING AND FISHING ENVIRONMENT AGRICULTURE Part L - EDUCATION PRIMARY AND SECONDARY EDUCATION HIGHER EDUCATION Part M - HUMAN RESOURCES SOCIAL SERVICES - GENERALLY THE DISABLED THE ELDERLY CHILDREN Major Issues Part Aid to Nonpublic Schools A; L Aid to Public Education L Baltimore City Criminal Justice System F Business and Economic Development Funds - Consolidation H Business and Technology Court F Check Cashing Services I Child Welfare - Substance Abuse Treatment Programs M Children's Health Program - Expansion J Cigarette Vending Machines J Contracts - Late Fees I Early Child Care and Education L Earned Income Tax Credit B Electronic Commerce/Electronic Government C; H; I Energy Efficient Technology Tax Act B Ethics - Business Relationships with Lobbyists C Handgun Safety E Health Insurance - Coverage of Habilitative Services for Children J Health Maintenance Organizations - Downstream Risk Assumption Contracts J Health Maintenance Organizations - Subrogation Provisions J Higher Education Funding L Horse Racing H Inheritance Tax B Injured Workers' Insurance Fund H Juvenile Justice Department - Programs and Services A; E Lead Paint - Testing and Funding Initiative H; J Maryland Prepaid College Trust and Investment Plan L Maryland Research and Development Tax Credit B Mass Transit - Farebox Recovery G Medical Records - Confidentiality J New Home Builders H Nursing Homes J Prescription Drug Subsidy Plan for Elderly Persons in Medically Underserved Areas J Prevailing Wage - School Construction Projects C Real Property Sales Practices (Flipping) F Regional Air Service Development Program G "Smart Codes" - Infill Development and Smart Neighborhoods C; H "Smart Codes" - Maryland Building Rehabilitation Code C; H Tax Free Week B Transportation Priority Funding G Truth in Taxation B Tobacco Settlement Funds (Cigarette Restitution Fund) A; J Uniform Computer Information Transaction Act (UCITA) I Uniform Electronic Transaction Act (UETA) I Part A Budget and State Aid Operating Budget Setting the Stage The 2000 legislative session was framed by the State's strong financial position. Fiscal 1999 closed with an unappropriated balance of $320 million, and a continued favorable economic performance led the Board of Revenue Estimates (BRE) to revise the fiscal 2000 general fund revenue estimate upward by $575 million in December 1999. As a result, the projected fiscal 2000 closing balance was increased to $816 million. Fiscal 2001 revenue estimates were also revised, but to a lesser extent. In conjunction with funds in excess of the 5 percent of general requirement in the State's Reserve Fund, the State was in the position of having a surplus of nearly $1.0 billion. The revenue picture was further enhanced by the influx of monies from the tobacco settlement payments arising from the State of Maryland v. Philip Morris, et al. Payments received under the settlement are placed in the Cigarette Restitution Fund (CRF), and may be allocated for a variety of health-related and other purposes as outlined in legislation enacted during the 1999 session. Budget in Brief As enacted during the 2000 session Senate Bill 150 (the Budget Bill) provides $19.6 billion in appropriations for fiscal year 2001; an increase of $1.6 billion over fiscal year 2000. General fund appropriations are $1.1 billion greater than current spending authority. This level of growth does not accurately portray change in the operating budget, due to large allocations of dollars to one-time Paygo capital projects and the State Reserve Fund. Exclusive of these appropriations, the operating component of the budget grows by $906 million (5.6 percent), and general funds grow by $601 million (7.0 percent). The budget also allocates $266.3 million of tobacco settlement payments from the CRF. State agency operations constitute nearly one-half of the budget. Health, education, and public safety-related agencies receive nearly two- thirds of dollars allocated for agencies. Growth in agency spending is partly attributable to employee compensation and new personnel. Employee compensation enhancements provide for a 4 percent general salary increase, which will be effective on November 15, 2000, salary increments, and upgrades for selected positions. In addition, 2,038 new positions are created in the budget. Many of these positions represent contractual conversions, address deficiencies in the public safety and juvenile justice areas, and provide for higher education enhancements. A number of enhancements and initiatives are also funded in fiscal 2001, through different fund sources. In a departure from prior years, where general funds largely comprised new spending, the budget enacted during the 2000 session implements or expands programs with general funds, special funds from the CRF and local contributions, and federal dollars. Highlights of selected items are discussed later in this section. Education programs continue to fare well in the fiscal 2001 budget. General fund contributions to State colleges and universities increase $86.9 million (10.9 percent) to further enhance post-secondary programs. Pass-through education and library aid to local jurisdictions rises $124 million. The operating budget includes $174.1 million for public school construction. In combination with bond funding, $261 million will be available for school construction. Other education aid increases were provided through formula increases to the community colleges, scholarship programs, and aid to private colleges and universities. At the primary/secondary education level, new funding was provided for academic intervention programs, the Baltimore City remedy plan, and school readiness. Funding for non-public school
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