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90 Day Report, a Review of the 2001 Legislative Session

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90 Day Report, a Review of the 2001 Legislative Session The 90 Day Report A Review of the 2001 Legislative Session Department of Legislative Services Office of the Executive Director Maryland General Assembly April 13, 2001 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 2001 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 in previous years, 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 previously were designed to hold the most recent edition of The 90 Day Report; please use the binder provided 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 2001 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 AID TO LOCAL GOVERNMENT TAXES Part B -TAXES Part C PROPERTY TAX STATE GOVERNMENT LOCAL PROPERTY TAX INCOME TAX Part D SALES TAX MISCELLANEOUS TAXES LOCAL GOVERNMENT Part C - STATE GOVERNMENT Part E STATE AGENCIES, OFFICES, AND OFFICIALS CRIMES, CORRECTION, AND PUBLIC ELECTIONS SAFETY ETHICS PROCUREMENT Part F REGULATIONS AND ADMINISTRATIVE PROCEDURE ACT COURTS AND CIVIL PROCEEDINGS PERSONNEL Part G PENSIONS AND RETIREMENT GENERAL ASSEMBLY TRANSPORTATION AND MOTOR Part D - LOCAL GOVERNMENT VEHICLES Part H LOCAL GOVERNMENT - GENERALLY COUNTIES GENERALLY BUSINESS AND ECONOMIC ISSUES MUNICIPAL GOVERNMENTS BI-COUNTY AGENCIES Part I SPECIAL TAXING DISTRICTS FINANCIAL INSTITUTIONS, Part E - CRIMES, CORRECTION, AND PUBLIC COMMERCIAL LAW, AND SAFETY CORPORATIONS CRIMINAL LAW Part J CRIMINAL PROCEDURE JUVENILE LAW HEALTH PUBLIC SAFETY Part K Part F - COURTS AND CIVIL PROCEEDINGS NATURAL RESOURCES AND JUDGES AND COURT ADMINISTRATION 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 AND AGRICULTURE NATURAL RESOURCES HUNTING AND FISHING ENVIRONMENT AGRICULTURE Part L - EDUCATION EDUCATION - PRIMARY AND SECONDARY HIGHER EDUCATION Part M - HUMAN RESOURCES SOCIAL SERVICES - GENERALLY ELDERLY THE DISABLED CHILDREN Major Issues Aggressive Driving G Air Quality Control Permits - Public Participation - Judicial Review K Bulletproof Body Armor E Chesapeake Regional Olympic Games Authority Act C Community Legacy Program - Neighborhood Conservation H Credit Services - "Payday" Loans I Credit Union Laws - Modernization I Death Penalty - Moratorium E Developmental Disability Administration - Community Providers - Reimbursement Rate J Drunk Driving G Economic Development Corporation (MEDCO) - Scope of Authority H Elections - Statewide Voting Systems C Emergency Medical Systems Operations Fund - Funding G Environment - Deposit of Dredge Material K "GreenPrint" Program - Conservation of Natural Resources K Gun Safety Programs L Health Care Trust, Maryland J Health Maintenance Organizations - Patient Choice of Provider - Nurse Practitioners J Higher Education Funding L Human Relations - Discrimination on Basis of Sexual Orientation F Income Tax Credit for "Green" Buildings B Income Tax - Single Sales Factor for Manufacturing Corporations B Lobbyist Ethics C Mass Transit Initiative G Minority Business Enterprise Program - Increase in Goal C Pensions - Reemployment of Retirees C Prescription Drugs - Subsidies, Discounts, and Assistance to Seniors J Public Education Funding L Racial Profiling/Race-Based Traffic Stops E Recreational Crabbing License K Sex Offenders E State Budget - Increase in Executive Branch Items C State Personnel - Higher Education - Collective Bargaining C Tax Amnesty B Tobacco Crop Conversion (Southern Maryland Regional Strategy - Action Plan) K Tourism C Part A Budget and State Aid Operating Budget Budget in Brief As enacted during the 2001 session, House Bill 150 (enacted) (the Budget Bill) provides $21.2 billion in appropriations for fiscal 2002; an increase of $1.2 billion (6.2 percent) over fiscal 2001. Exhibit A1.1 illustrates funding by type of revenue. Just over one-half is supported by general funds, with lesser proportions supported by dedicated special funds, federal aid, and higher education dollars. Less than one-half of the budget supports agency operations. Aid to local jurisdictions constitutes 21 percent of the budget, and 16 percent is for entitlements. Remaining appropriations pay debt service on general obligation bonds, fund portions of the capital program, and increase the balance in the State Reserve Fund. General fund appropriations are $547.4 million greater than fiscal 2001. Similar to 2001, the budget provides significant PAYGO capital spending. During the 2000 session the Governor outlined an ambitious agenda for additional capital projects over a multi-year period. This was based in part on the surplus of available cash. Provisions of Chapter 4, Acts of 1998 also required the Governor to appropriate $141.8 million to the Revenue Stabilization Fund, representing the unappropriated fiscal 2000 general fund surplus in excess of $10.0 million. Absent these appropriations, the operating component of the general fund budget increased $658.5 million, or 7.1 percent. Special and federal funds also experience large growth in the 2002 budget. Special funds increase $274.9 million (8.0 percent) and federal spending rises $378.7 million (8.6 percent). Exhibit A1.1 Maryland's $21.2 Billion Budget Where It Comes From: Budget by Fund Source Where It Goes: Budget by Purpose State agency operations constitute 48 percent of the budget. Health, education, and public-safety related agencies receive 61 percent of dollars allocated for State agencies. Growth in agency spending is partly attributable to employee compensation costs for health and other insurances increases of $78.3 million (17.6 percent over that paid in fiscal 2001) and the addition of 2,950.3 new positions. Most of the new positions were provided in the areas of higher education, human resources, juvenile justice, and public safety. Roughly one- fourth of the new positions represent contractual conversions. Funding was also included for a 4 percent general salary increase effective January 1, 2002. Education programs continue to fare well in the fiscal 2002 budget. General fund contributions to State colleges and universities increase by $88.0 million, or 9.9 percent, to further enhance post-secondary programs. Pass-through education and library aid to local jurisdictions rises $138.1 million. The operating budget includes $134.0 million for public school construction. In combination with bond funding (general obligation and qualified zone academy bonds), $253.4 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 level, new or enhanced funding was provided for high school assessment test development, the Baltimore City remedy plan, and to help school systems assist pre-kindergarten through third grade students in meeting the State's third grade accountability standards. The budget further provides $5.0 million for the second year of funding to defray the costs of textbooks for students enrolled in certain private primary and secondary schools. For a more detailed discussion of State aid for local governments and education, see the Overview of State Assistance to Local Governments in this part and Part L - Education of this 90 Day Report. Programs supporting the administration's smart growth policy were again emphasized in the budget. Funding was approved for four new initiatives. GreenPrint, an initiative to purchase land and conservation
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