Text Box:       The 2006 Legislative Session        Annapolis Report                              Legislative District 35B – Harford County   This report highlights the legislation that took place during the 2006 Legislative Session. Please contact us with your ideas, concerns and opinions. This will help us prepare for the next Session which convenes in January 2007. The General Assembly of Maryland meeting for its 421st session from January to April 2006, considered over 2,800 bills that affect many areas of importance to Maryland citizens. Of these, 636 bills were enacted, most of which take effect October 1, 2006. The General Assembly passed significant legislation enhancing pensions for State employees and all members of the Teachers’ Pension System. The enhancement, retroactive to 1998, increases the benefit multiplier used to calculate a retiree’s annual payment.   Maryland’s veterans will receive a break on the tax on their retirement income, and for three years recognized military organizations will not have to pay sales tax on purchases. The legislature also provided multi-pronged assistance to veterans of the Afghanistan and Iraq conflicts through a State line-of-duty death benefit, new scholarship support, and additional outreach and advocacy efforts.   Other initiatives support Maryland’s wine industry and minority and small business owners. The State will continue to help low-income seniors obtain prescription drugs and assist low-income households pay their energy bills. Foster care payments are raised for the first time since 1991. Other enhancements include money for the caregivers of adult dependents who need long term care and for Marylanders with developmental disabilities.   State funding for K-12 educational programs and for public school construction remained a high priority for the 2006 legislature. Additionally, every segment of higher education received an increase in the budget, including the University System of Maryland institutions, St. Mary’s College, Maryland’s community colleges and private institutions, as well as the four historically black universities. The General Assembly prohibited the University System of Maryland institutions and Morgan State University from increasing resident undergraduate tuition for the 2006-2007 academic year beyond the rates charged in the last academic year. Higher education scholarships were enhanced with particular emphasis on those that are need-based.    Actions of Local Interest to Harford County   State Assistance: Harford County will receive $225.9 million in direct State assistance in fiscal 2007.  This is an increase of $27.0 million over the last fiscal year.  This assistance is equivalent to the amount of revenue generated from a $1.15 county property tax rate.  On a per capita basis, State assistance to the county will total $944.    Education:  Over the last four years, State funding for public schools in Harford County has increased by $62.6 million.  In fiscal 2007, public schools in the County will receive $185.8 million for operations and $11.1 million for school construction.  In addition, the Harford County library system will receive a total of $1.4 million in fiscal 2007.   At the higher education level, State funding for Harford Community College includes $8.8 million for operations and $5.7 million in capital funds for additions and renovations of Aberdeen Hall.  In addition, State retirement payments for county teachers, librarians, and community college faculty will total $19.2 million in fiscal 2007.    Public Safety:  Police protection, fire, and rescue aid in the County will receive $3.1 million in State funding.  An additional $0.9 million is being provided for the expansion of the Harford County Detention Center.    Social Services: Another area in which the State provides resources is through direct aid to local governments for health and social services programs. In fiscal 2007, Harford County will receive $35.2 million for these local programs, including more than $0.4 million for senior citizen services, $15.8 million for programs aimed at assisting those with developmental disabilities, and $2.1 million for child welfare programs.  The State is also providing capital grants to the Citizens Care and Rehabilitation Center ($0.6 million).   Quality of Life:  Local transportation and land preservation grants are restored to statutory funding levels after several years of budgetary reductions.  Local transportation grants for the County will total $17.7 million in fiscal 2007 and local Program Open Space grants will total $5.4 million.  The State is also providing $0.2 million for community parks and playgrounds in the county, and an additional $2.4 million for waterway improvement projects.  Moreover, the State is giving a $0.5 million grant to the Ripken Youth Baseball Academy.    Direct State Aid to         Harford County (in millions)         FY 2007                     Direct Aid Amount         Public Schools $185.8         Community College 8.8         Libraries 1.4         Health Board 2.9         Local Government1 27.0         Total2 $225.9                     1Includes funds for transportation, public safety, recreation, and other direct aid.         2The State also pays $19.2 million in retirement benefits on behalf of the county for local teachers, librarians, community college faculty, and other local officials.                         Military Issues   Veterans - Income Tax Reduction: The General Assembly expanded the existing military retirement income subtraction modification by allowing a subtraction from taxable income for the first $5,000 of retirement income resulting from service in the armed forces, Maryland National Guard, or separation after July 1, 1991, from active duty with the Commissioned Corps of the Public Health Service, the National Oceanic and Atmospheric Administration, or the Coast and Geodetic Survey.   Base Realignment and Closure (BRAC): As a result of the 2005 BRAC process Maryland will gain about 17,000 military and civilian jobs phased in over a five- to six-year period, as well as some 40,000 new jobs and 50,000 new residents concentrated primarily in Harford, Anne Arundel, and Montgomery counties. New legislation renames the 1993 council, now the Maryland Military Installation Council that acts as the contact for BRAC between the federal government and the State and expands the Council’s duties, membership, and tenure.   New Scholarship for Military Service: An estimated 7,000 to 9,000 Maryland residents have served or are serving in Iraq and Afghanistan. A new scholarship will serve residents of the State who are veterans of these conflicts, are on active duty, are members of the U.S. Armed Forces reserves or Maryland National Guard, or are a dependent of a qualifying veteran or individual on active duty.   Tax Issues   Estate Tax Reduction: Successful legislation reduces the estate tax on the smallest taxable estates from 41% to 16% and modifies administrative aspects of the tax.   Homeowners’ Property Tax Credit: Rising property tax assessments led to changes in the State-funded Homeowners’ Property Tax Credit (Circuit Breaker) Program that provides credits for homeowners based on a sliding scale of property tax liability and income. Changes increase the maximum assessment valuation against which the credit may be applied from $150,000 to $300,000, enhance the tax benefit by lowering the property tax owed for a given level of income, and limit eligibility for the credit to homeowners with income of less than $60,000. Changes apply to all taxable years after June 30, 2006. Another bill makes certain individuals with disabilities also eligible for the circuit breaker program. Additionally, counties and municipalities may enact local property tax credits for a home owned by and used as the principal residence of an individual who is at least 70 years old and of limited income.   Business Issues   Minimum Wage Increase: Maryland law now requires private sector employers to pay the greater of the federal minimum wage or a wage that equals a rate of $6.15 per hour and to pay tipped employees a wage rate that equals $3.08 per hour. A 2006 passed measure extends the State minimum wage of $6.15 per hour and tip credit to State and local government employees.   Wineries – Direct Sales to Retailers: An emergency bill brings Maryland law into compliance with federal interstate commerce provisions related to nondiscriminatory treatment between in-state and out-of-state wineries. Maryland small wineries retain their ability to sell directly to restaurants, retailers, and permit holders, while out-of-state small wineries are allowed to do the same.    Privacy of Social Security Numbers (SSN): Unauthorized use of an SSN is the most common technique used to commit identity theft. 2006 legislation prohibits an employer, including a governmental unit, from printing a SSN on a paycheck, attachment to a paycheck, direct deposit notice, or notice of credit to a debit card or card account.   Assistance with Utility Bills: The fiscal 2007 budget includes $100.6 million to help low-income households pay their energy bills including $25 million in new State funds to allow the State to increase the eligibility for the energy assistance programs from 150% to 200% of the federal poverty level and meet increased demand for assistance when the higher electric rates go into effect this summer.   Crime and Public Safety   Court-Appointed Lawyers for Children: To reconcile judicial practice with the law, courts are authorized to appoint a lawyer or guardian ad litem to represent a child in custody, visitation, or support cases. However, these lawyers do not have immunity from malpractice claims.   Domestic Violence: Under a new Address Confidentiality Program, domestic violence victims may request the use of a substitute address in an agency’s response to requests for public records, and the Secretary of State will accept service of process and mail for the participant.   Identity Theft: A new initiative prohibits a person from knowingly selling, issuing, or offering for sale or issue an identification card or document that contains an incorrect name of a person or an incorrect address. Violators are subject to imprisonment for up to two years and a fine of up to $2,000. Another new law allows the use of a sworn affidavit, rather than a court appearance by the victim, as evidence that a credit card or credit card number was taken without authorization.   Funeral Disruption: Responding to recent organized protests at funeral services, new Maryland law prohibits knowingly restricting entry to or exit from a funeral, burial, memorial service or funeral procession, addressing a person attending the event in a manner likely to breach the peace, or picketing attendees within 100 feet of the event. Penalties are imprisonment for a maximum of 90 days and a fine of up to $1,000.   Child Abuse: For persons who are convicted multiple times of certain crimes of violence, there are enhanced penalties including increased mandatory minimum jail terms and ineligibility for parole. The legislature added first-degree child abuse to the offenses that subject a person to these penalties.   Violent or Sexual Offenders: Currently, a public school is barred from hiring an individual convicted of a violent or sexual offense. Effective July 1, 2006, the same prohibition will apply to a nonpublic elementary or secondary school. The State Department of Education must revoke the approval of a school that violates the prohibition.   Privacy of Cellular and Other Telephone Records: To better protect consumers, a person may not knowingly obtain, sell, or receive a telephone record without the customer’s authorization or by fraudulent, deceptive, or false means. A telephone record contains information related to numbers dialed, incoming call numbers, or other call data on a customer’s bill.   Natural Resources and Environment   Agricultural Stewardship: A new law establishes programs to preserve farmland and farming in the State and provide incentives to farmers to improve the water quality of Maryland’s rivers and streams. The bill modifies the existing county agricultural land preservation certification program to include Priority Preservation Areas; establishes an agricultural internship program; creates a task force to study the tax structure related to farmers; establishes the intent of the General Assembly that the Governor provide additional funding for several existing programs; and mandates funding for specified existing programs.  Agritourism: Structures used in agricultural tourism in some counties are exempt from complying with State building standards, and a fund is to provide grants to preserve historic barns and agricultural structures.   Health Issues  Maryland Medbank Program: Repeal of this program’s termination date allows assistance to continue for low-income individuals who lack prescription drug coverage through obtaining medically necessary prescription drugs from pharmaceutical manufacturers.   Senior Prescription Drug Assistance Program: Low-income seniors may use the subsidy provided by this program to pay for all or some of the deductibles, premiums, or other co-payments of enrollees in Medicare Part D. The program may also provide an additional subsidy, up to the full amount of the Medicare Part D prescription drug plan premium, for individuals who qualify.   Family Caregiver Assistance Program: Administered by the Department of Aging, this grant program will provide up to $500 per year for family caregivers for adult dependents needing long-term care if the caregiver resides with the dependent and the caregiver’s income is under a certain amount. The grants are to be used for expenses associated with the costs of providing the care.  State Government Employee and Teacher Pensions & Retirement: Pension benefits will increase for all State employees and teachers, and by June 30, 2007, local governments who participate in the Employees’ Pension System may also elect to participate. The legislation increases the benefit multiplier used to calculate a retiree’s annual payment from its current level of 1.4 to 1.8% and applies the higher multiplier to service credit earned since July 1, 1998. To help defray the costs, employees and teachers will contribute 5% of their annual compensation, up from the current 2%, phased in over three years. For a new teacher who teaches 30 years, the first year pension will increase from 42% of average final salary to 54%, roughly a 28% increase.  Mandatory Suspensions for Young Drivers: Drivers who violate alcohol and/or drug-related driving provisions are subject to a mandatory license suspension for one year for a first offense and a mandatory suspension for two years for a second or subsequent offense.  Restricted License for Individuals with Impaired Vision: A restricted driver’s license may be issued to an individual with impaired vision who is evaluated and recommended for approval by the State’s Medical Advisory Board and who successfully completes a driver training course.     End of Document Text Box: Bob Hooper

 

 

 

 

 

 

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