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GREATER
BALTIMORE TECHNOLOGY COUNCIL
Maryland
2007 Legislative Review
June 22, 2007
As
we go pass into the sweet luxury of a relaxing summer - and before
we depart for our much longed-for vacations - it is a good time
to reflect on the hectic legislative activity of the Maryland General
Assembly during this past year.
The
tone in Annapolis this winter was dominated by Fiscal and Policy
Notes. Bills that received a negative Fiscal Note from the Department
of Legislative Services generally failed to pass as the General
Assembly kept a wary eye on the looming $1.5 billion structural
deficit in fiscal year 2009. Surprisingly, the Fiscal and Policy
Note "effect" defeated many of the social issues that threatened
business viability.
By
the end of the session, the perennial slots bill was defeated, significant
(and costly) health care reform was tabled, an increase in annual
recording fees for businesses was stalled, and taxes and fees on
businesses designed to protect critical areas were unsuccessful.
A bill hoping to change Maryland from a business-friendly contributory
negligent tort system to a plaintiff-friendly comparative negligence
standard also failed. An oft-threatened "Second Walmart Health Care
Bill" never materialized but may return in 2008.
By
the same token, a partial increase in minimum wages was approved,
the so-called "living wage bill," but it applies only to contractors
with State contracts over $100,000. Ground rent reform appeared
to be the only lightening rod social issue that went forward unscathed
-- didn't hurt that the attached Fiscal and Policy Note was neutral.
Overall,
the amount of legislation with a significant impact on business
in general was surprisingly small. Here are some of the highlights:
- Stem
Cell Research Funding. The fiscal year 2008 appropriation is
$23 million -- $8 million more than last year.
- Voice
Over Internet Protocol (VoIP). The General Assembly cleared
some regulatory ambiguity concerning VoIP by specifying that
VoIP providers are exempt from regulation by the Public Service
Commission, which ordinarily regulates telephone companies.
VoIP providers, however, remain subject to State and federal
regulations related to consumer protection. Also, VoIP providers
are still subject to "9-1-1 usage fees." (SB 864/HB 1379)
- Life
Sciences Advisory Board. The General Assembly created a 15 member
Life Sciences Advisory Board that will provide information and
advice regarding federal and State life science research, development,
investment and job creation. (SB 104/HB 135)
-
Business Incubator Property Tax Credit. Property tax credits
for businesses located in a publicly sponsored business incubator
can now apply to the County or Baltimore City for a property
tax credit, which will provide local businesses with a valuable
tax credit. (SB 705/HB 327)
- Maryland
Small Businesses. The General Assembly increased the loan and
loan guarantee cap for small businesses from $1 million to $2
million. (SB 318/HB 989)
- Maryland
Research and Development Tax Credit. This tax credit was decoupled
form the federal income tax credit, which means that if the
federal Research and Development Tax Credit is repealed or terminated,
Maryland businesses may still claim a credit on Maryland taxes.
(HB 1197)
- Solar
and Renewable Energy. Two bills related to solar and renewable
energy sources. The first bill requires electricity suppliers
to earn and accumulate renewable energy credits specifically
from solar energy in increasing amounts from 2008 to 2022. The
second bill expanded the types of devices that are eligible
for property tax benefits, which now includes solar devices
for heating and cooling, electricity generation, or hot water.
(SB 595/HB 1379; HB 590)
- Consumer
Protection / Identity Theft. The General Assembly passed two
bills regarding identity theft that impact businesses.
- Businesses
must protect personal information of consumers, which includes
the consumer's name, social security number, certain financial
account numbers, or tax identification number. "Reasonable"
security procedures and practices must be used to protect
personal information. In addition, businesses that own or
use a computerized data system are now required to investigate
breaches and determine the likelihood that personal information
has been lost or will be misused. Once a business determines
that misuse has occurred or is likely to occur, that business
must incur additional costs to notify the individuals that
may be at risk.
- Consumers
may now place security freezes on their credit score reports.
Credit agencies must place the security freeze on the account
five business days after receiving the request. The freeze
may be removed only at the consumer's request, or upon the
consumer's failure to file appropriate documentation or
misrepresentation of the facts. (SB 52/HB 117; SB 194/HB
208)
- Homestead
Property Tax Credit. The General Assembly added an application
requirement to the Homestead Property Tax Credit. The credit,
which permits homeowners to "cap" an increase in property tax
assessments from a change in valuation due to a change in ownership,
had been available without documentation of eligibility. This
bill's passage was helped by a positive Fiscal Note that claimed
that the application requirements may increase State revenues
approximately $500,000 to $700,000 per year between 2008 and
2012. (SB 522/HB 436)
For
further information regarding the Legislative Committee or the Legislative
Agenda, please contact Steve Kozak, Executive Director of the Technology
Council at Steve Kozak stevek@gbtechcouncil.org
or Abba David Poliakoff (Gordon, Feinblatt), Chair of the Legislative
Committee, at apoliakoff@gfrlaw.com.
The other Committee Members are: Brian Darmody (University of Maryland),
Ellen Hemmerly (UMBC Research Park), Warren Mullins (Battelle),
and J.C. Weiss (Investor).
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