MAJOR ISSUES REVIEW A Review of Legislation 1995 - 1998 Department of Legislative Services Office of the Executive Director Maryland General Assembly Karl S. Aro Executive Director June 30, 1998 The Honorable Thomas V. Mike Miller, Jr., President of the Senate The Honorable Casper R. Taylor, Jr., Speaker of the House of Delegates Members of the General Assembly Ladies and Gentlemen: I am pleased to present you the 1995 - 1998 MAJOR ISSUES REVIEW. This document summarizes legislative activities over the 4-year term. It includes discussion of all the major issues, significant bills that did not pass, and gubernatorial vetoes of major legislation. Information about the operating and capital budgets, as well as aid to local governments, is presented in Part A. Also included in Part A are relevant comparative data relating to State expenditures during the 1995 - 1998 term. Like the The 90 Day Report on the 1998 Legislative Session, the 4-year MAJOR ISSUES REVIEW is divided into 13 major parts which are listed in the Table of Contents. An alphabetical checklist of major issues considered during the 1995 - 1998 term is also provided. I hope that you will find the MAJOR ISSUES REVIEW as helpful a document as you have found in similar 4-year review documents that were prepared in the past. If you have any questions about the contents of this document, please contact me. Sincerely, Karl S. Aro Executive Director Major Issues Review MAJOR ISSUES Part A - BUDGETS AND STATE AID OPERATING BUDGET CAPITAL BUDGET OVERVIEW OF STATE ASSISTANCE TO LOCAL GOVERNMENTS APPENDIX I -- COUNTY LEVEL DETAIL Part B -TAXES PROPERTY TAX INCOME TAX SALES AND USE TAX RECORDATION AND TRANSFER TAXES MISCELLANEOUS TAXES Part C - STATE GOVERNMENT STATE AGENCIES, OFFICES, AND OFFICIALS ELECTIONS ETHICS PROCUREMENT REGULATIONS AND ADMINISTRATIVE PROCEDURE ACT PERSONNEL PENSIONS AND RETIREMENT GENERAL ASSEMBLY Part D - LOCAL GOVERNMENT LOCAL GOVERNMENT - GENERALLY COUNTIES GENERALLY MUNICIPAL GOVERNMENTS BI-COUNTY AGENCIES Part E - CRIMES, CORRECTION, AND PUBLIC SAFETY CRIMINAL LAW CRIMINAL PROCEDURE JUVENILE LAW PUBLIC SAFETY Part F - COURTS AND CIVIL PROCEEDINGS JUDGES AND COURT ADMINISTRATION CIVIL ACTIONS AND PROCEDURES FAMILY LAW HUMAN RELATIONS REAL PROPERTY ESTATES AND TRUSTS Part G - TRANSPORTATION AND MOTOR VEHICLES TRANSPORTATION MOTOR VEHICLES Part H - BUSINESS AND ECONOMIC ISSUES BUSINESS REGULATION AND OCCUPATIONS PUBLIC SERVICE COMPANIES INSURANCE REGULATION HORSE RACING AND GAMING ECONOMIC AND COMMUNITY DEVELOPMENT WORKERS' COMPENSATION UNEMPLOYMENT INSURANCE LABOR AND INDUSTRY ALCOHOLIC BEVERAGES - STATEWIDE LAWS Part I - FINANCIAL INSTITUTIONS, COMMERCIAL LAW, AND CORPORATIONS FINANCIAL INSTITUTIONS COMMERCIAL LAW CORPORATIONS AND ASSOCIATIONS Part J - HEALTH PUBLIC HEALTH - GENERALLY HEALTH CARE FACILITIES AND REGULATION HEALTH OCCUPATIONS HEALTH MAINTENANCE ORGANIZATIONS 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 ELDERLY THE DISABLED CHILDREN 1995 -1998 TERM OF THE GENERAL ASSEMBLY OF MARYLAND MAJOR ISSUES LIST Abortion - Partial Birth Adoption Records - Disclosure of Sealed Records Adoptions - Termination of Parental Rights Aggressive Driving Appeals and Grievances - Health Care Decisions Automobile Insurance Reform Baltimore City School System Reform Boiler Inspection and Safety Breast Cancer Program Brownfields (Cleanup of Old Industrial Sites) Campaign Financing Child Support Enforcement Children and Families Health Care Program Cigarette Vending Machines Closing Cost Reduction (Transfer and Real Property Taxes) Community College Funding Comparative Negligence Dairy Industry - Milk Pricing Death Penalty Reform Disruptive Students Divorce - Excessive Vicious Conduct Domestic Violence Drunk Driving Early Retirement Earned Income Tax Credits for Low Income Wage Earners Election Law Revision Electric Utility Restructuring Ethics Laws Reform Fair Campaign Financing Act Fisheries Management - Limited Entry to Commercial Fishery Football Stadiums Fuel Efficient Vehicles - Tax Credit Gifts by Regulated Lobbyists Graduate Medical Education Graduated Drivers' Licenses Gun Control/Gun Violence Health Benefits - Contraceptive Devices Health Care Reform Act Health Care Regulatory Reform Health Insurance - Mandated Benefits Health Insurance - Patient Access Health Insurance - Two-day Childbirth Hospital Stay Health Maintenance and Managed Care Organizations - Liability for Decisions Highway Users Revenue Distribution Home Detention Systems - Stricter Regulation Homeowner's Property Tax Credit Program - Expansion Homicide - Mitigating Circumstances - Spousal Adultery Hope Scholarship Program Horse Racing Industry Hospitals - Acquisition of Nonprofit Health Entities Income Tax Reduction Job Creation Tax Credit Judicial Compensation Judicial Disabilities Commission Juveniles - Detention and Intake; Restitution Juvenile Justice Act of 1998 Lead Poisoning Prevention Legislative Scholarships Maryland Higher Education Investment Program Maryland Insurance Administration - Funding Maryland Science and Technology Scholarships Maryland Science, Engineering, and Technology Corporation Medicaid Managed Care Medical Records - Confidentiality and Disclosure Micro - breweries - Expansion Minority Business Enterprise Program Mortgage Lending Industry Motor Vehicle Theft Motor Vehicles - Nonuse of Seat Belts Motor Vehicles - Traffic Signal Violations Motor Vehicles - Use of Headlamps in Rain Needle Exchange Program Neighborhood Business Development Program Nutrient Management (Pfiesteria) Optometrists - Scope of Practice Organ and Tissue Donation Personnel Reform Pest Management in Public Schools Pfiesteria Prince George's County Charitable Gambling Prince George's County Educational Assistance Program Open Space Act of 1995 Property Tax Setoffs Public Service Companies - Holding Companies Real Estate Licensees - Dual Agency Religious Freedom Act Rural Legacy School Accountability Funding for Excellence Program Sex Offender Registration Slot Machines at Race Tracks Smart Growth (Growth Management) Smoking - Workplace Smoking Ban Snack Tax Speed Limit - 65 M.p.h. State Assistance to Local Governments State Employees and Teachers - Early Retirement State Employees and Teachers - Pension Benefit Enhancements Sunny Day Fund Telecommunications Title Insurance Reform Tobacco Manufacturers - State Claims Tobacco Tax Tourism Development/Funding Unemployment Insurance University System of Maryland Employees - Early Retirement University System of Maryland - Governance and Funding Study Vehicle Emissions Inspection Program (VEIP) Vehicle Laws - Graduated Driver Licensing Vehicle Laws - Intoxication Per Se Vehicle Leases Victims' Rights Warrantless Arrests - Expansion Welfare Reform Wildlands Preservation Woodrow Wilson Bridge and Tunnel Compact Workers' Compensation - Use of Drugs and Alcohol PART A BUDGETS AND STATE AID OPERATING BUDGET SUMMARY OF THE OPERATING BUDGET (1995 - 1998 SESSIONS) The change in State spending in the operating budget by major category of expenditure is shown in Exhibit A.1. General funds derive primarily from general tax revenues such as income and sales taxes and the State Lottery. From fiscal 1995 to fiscal 1999, expenditures supported by general funds increased 21%, from $7 billion to nearly $8.5 billion. Most of this new spending was for aid to local governments ($615 million increase) and State agencies ($472 million increase). Due to falling caseloads and welfare reform, expenditures for entitlements increased less than 5% over the four year period. Although State support for colleges and universities increased $109 million, the rate of increase was less than that experienced for aid to local governments and State agencies. Total spending from all sources of funds, including federal, rose $3.1 billion over the four year period, boosting expenditures from $13.5 billion to $16.6 billion. There is less variation in the growth rate among major categories of expenditures when all spending is considered. The rate of increase in spending was highest for state colleges and universities, taking into account tuition and fee and research grant supported expenditures. Since 1982, the Spending Affordability Committee, composed of legislative and citizen members, recommends to the Governor and the General Assembly a level of spending for the State operating budget that is reflective of the current and prospective condition of the State's economy. The rate of growth in each of the budgets enacted over the four year period was within these recommendations. Thus, during a period of economic growth, increases in State spending were constrained to prevent building in unsupportable levels of spending in future years. The enacted budgets prudently manage accumulated fund balances in light of the comparatively modest growth rates forecast for future State tax revenues due to State tax reductions. Aid to local governments was clearly a priority over the last four years. Between fiscal 1995 and 1999 aid increased $650 million or 25%. Most of this additional aid was for the public schools. Since fiscal 1995 education aid will have increased $548 million or 28%. This significant increase results from growth in existing education aid programs and enhancements enacted by the General Assembly over the four years. Other legislation enacted during the 1995-1998 term