Major Issues Summary

MAINTENANCE OF EFFORT (MOE)

During the 2010 session of the General Assembly, MACo actively advocated for changes to the waiver system under the education "maintenance of effort" law. In the final days of the legislative session, the House and Senate versions of their bills were sent to a conference committee, to resolve differences and conclude with a final product. MACo, supporting one of their legislative initiatives for the session, was arguing in favor of provisions from the House approach (reflected in HB 304), and sought to have as many as possible of those elements added to the final product in either that bill or the Senate cross-filed version, SB 310.

However, in an unexpected turn late in the final night of the Session, some "technical errors" caused the final conference report to get delayed, and ultimately the bill was not raised for final approval. Under Maryland law, at the close of the 90-day Session (midnight April 12) all pending legislation is effectively defeated. Thus, MACo's maintenance of effort initiative did not pass.

Legislators and staff who were involved in the final stages of the process expressed disappointment with the apparent technical problems that led to one version of a final conference committee report to be prepared and signed, but then shortly afterward replaced by another new version. The confusion over the correct final document cost precious time, as this was actually unfolding in the last hour of the session. By the time the proper report (incorporating some, but not all, of the House proposals and a revised timeline for the waiver decision-making process) was delivered to the Senate desk, time had nearly elapsed on the bill. While the final conference report was passed in the Senate, the report did not have time to get fully processed and passed by the House before midnight.

Since the legislation failed, current statute as outlined in Maryland Education Article §5-202, Annotated Code of Maryland applied. However, the State Board of Education issued guidance for FY 11 waiver requests, directing local governments to write a "Letter of Intent" by April 1, 2010. Dorchester, Frederick, Montgomery, Talbot and Wicomico counties submitted letters of intent. The Board subsequently issued their process for filing.

Background: Facing deep State budget cuts and declining local revenues, many counties contemplated waivers from the State MOE law. Three counties who actually pursued the waiver through the State Board of Education were all rejected, with several disturbing rationale cited by the State Board.

The current waiver process suggests an avenue for consideration of county budget difficulties, but the adjudication by the State Board (a body charged with advocating for public education, and without any expertise in government budgets or financing) may leave counties without meaningful redress in times of fiscal crisis. Legislation could eliminate, or replace, the current waiver system with a clearer and fairer process for evaluating county hardships in waiver requests. The primary focus of MACo's effort was on reform of the waiver process.

MACo Position Statement

MACo Testimony on SB 310 (primary bill)

The chief bills heard were products of the Joint Workgroup to Study State, County and Municipal Relationships. See our website section regarding the Joint Workgroup for more information on the workgroup deliberations and reports.

SCHOOL CONSTRUCTION

The Governor's budget includes $260 million for school construction and renovation projects, even while the State's capital program has been somewhat abridged due to operating-to-capital shifts representing a significant element of budget resolution. The General Assembly has broad latitude to alter or even add to the capital budget, and these discussions usually follow soon after the operating budget decisions come into focus.

The Capital budget passed by the General Assembly provided for $250 million in school construction and renovation projects. Final recommendations for funding will be approved by the Board of Public Works in May.

MACo's initiative: While the State has laudably increased its school construction and renovation efforts in recent years, the need for funding remains high. Every state dollar invested in school projects leverages roughly two county dollars of local funding. MACo urges the General Assembly to continue its commitment by keeping school construction and renovation funding a high priority, and support a funding level consistent with its own adopted multi-year goals. See the Task Force to Study Public School Facilities Report

Process and schedule for construction funding approval: The Interagency Committee on Public School Construction (IAC) proposes recommendations according to the following schedule: December-recommendations for 75% of the budgeted allocation; January-schools present to Board of Public Works to support projects that could utilize the other 25% of the allocation; February-IAC brings recommendations to Board of Public Works for allocation of the remaining 35% of funds-May-final recommendations for funding, based upon approved state budget.

All information regarding current proposals from the local school boards and funding recommendations from the IAC can be found on the Public School Construction Program website.

JUNK & SCRAP METAL

MACo has advocated for effective statewide legislation to better regulate scrap metal dealers, to help cool the "easy money" market for stolen property. During the 2010 session, MACo's attention has focused on the issue of pre-emption, as a statewide law that actively prohibits local ordinances from going further would actually represent a step backward on this seemingly difficult issue.

After three years of discussion in the General Assembly, SB 99 which provides for the statewide regulation of scrap metal dealers passed on the last day of the session. As introduced, the bill would have preempted local jurisdictions from enacting their own more strict laws and turned back the progress made in Baltimore City and Baltimore County with respect to the regulation of these dealers.

The final bill was decided by a conference committee after the Senate chose to keep the pre-emption language intact and the House struck it. The Committee amendments maintain the pre-emption language, but amend the bill to strengthen the business to business reporting by allowing law enforcement to inspect contracts a scrap metal dealer may have with business entities, and to require a copy of the driver's license of the individual from whom the scrap metal is acquired.

STORMWATER MANAGEMENT

The Department of the Environment's regulations governing stormwater management take effect May 4, 2010. These regulations were the result of legislation passed in 2007. Counties raised concerns with the regulatory effect on projects where initial approval had already been granted, and also redevelopment where a "downtown" project may be unable to practically attain the required reductions.

During the 2010 legislative session, MACo, MML, MDE, the homebuilders and the environmental community, hammered out a compromise. Under the compromise, projects that already have preliminary approval from county or municipal government would be able to proceed in many cases under existing, less-stringent, stormwater rules. Developers would get up to three years to get final local approval of their plans, but they would have to start construction by 2017 or be forced to install more runoff controls.

This compromise should have resolved the need for a legislative solution. However, opposition to the compromise regulations was expressed by the Chair of the Joint Committee on Administrative, Executive and Legislative Review (AELR) whose committee reviews the regulations. In response, the architect of the compromise agreement, House Environmental Matters Committee Chair Maggie McIntosh, decided to have the agreement enacted through legislation by amending HB 1125. MACo testimony on HB 1125. This action prompted the Chair of AELR to hold a hearing on the stormwater regulations on April 6. The regulations were approved, eliminating the need for further legislative action.

MDE issued a guidance document regarding implementation for the regulations. A full set of the regulations will be available in the near future.

MISS UTILITY

Legislation was introduced in the 2010 session to expand the role of Miss Utility to provide greater oversight of the marking of utilities and the enforcement of damage prevention laws. A proposed new entity, the Maryland Underground Facilities Damage Prevention Authority, would enforce these laws and have the authority to assess civil penalties for a violation.

MACo opposed the legislation, noting that the bill would remove a local jurisdiction's marking fee authority, impose new mandates (the marking of storm drains and designer tickets), and empower a new unaccountable entity with broad powers.

In the time between public hearings and committee votes, MACo met with industry to work out concerns raised. The industry offered to pull back on the marking of storm drains, so local jurisdictions would not be required to mark them; maintain a local jurisdictions authority to seek reimbursement for the cost of marking; and include language stating that the authority may not charge or assess a county or municipality to obtain funding for its operational expenses.

In the end, the bill that passed, SB 911 maintains local marking fee authority, removes all references to the marking of storm drains, and ensures that local governments will not be charged or assessed a fee either directly or indirectly, for the operations of the newly established Authority. MACo officially changed its position to support as the final amended version addressed MACo's major concerns.

WORKERS' COMPENSATION

MACo successfully opposed several pieces of workers' compensation legislation during the 2010 Session that would have increased costs to the counties. HB 1280 would have greatly expanded the cancer presumption for firefighters and rescue workers adding in 15 new types of cancers, including melanoma, testicular, bladder, breast, and cervical cancers. The bill also created a new presumption for various infectious diseases, including meningitis, tuberculosis, and hepatitis.

MACo argued against the bill, noting that it was not based on sound medical science and there was no way for counties to adequately manage risk. MACo also noted that in the vast majority of other states which have presumptions, the presumptions are rebuttable. In Maryland, however, the presumptions are accorded a much higher evidentiary weight. The House passed HB 1280 with amendments making all public safety presumptions rebuttable, removing the infectious disease presumption, and expanding the cancer presumption to include esophageal, brain, and lung cancers. The Senate Finance Committee convened a workgroup to consider the arguments of both the bill's proponents and opponents. At that time, MACo advocated for a study of all of the workers' compensation presumptions. At the subsequent request of the bill's sponsor and firefighter representatives, the Senate Finance Committee held the bill.

SB 953/HB 1318 would have altered the death benefits paid to a surviving spouse, child, or other dependent of an employee covered by workers' compensation who died due to an occupational disease or work-related accident. Further, it would have removed the distinction between "wholly" and "partially" dependents, set a twelve-year cap on benefits (subject to certain exceptions), provided benefits for dependents who are not spouses or children, raised the allowance for funeral benefits, and altered whom the Workers' Compensation Commission may consider as a dependent. The bill was the result of recommendations made to the Commission by an internal workgroup. During the workgroup's meetings, county representatives tried raising a concern of how the proposed changes would interact with the public safety presumption law but the workgroup chose not to consider the concerns. The county member of the workgroup also objected to the workgroup's recommendations.

MACo opposed the bill, arguing that dependent benefits could be "stacked" for employees subject to the presumption law while all other employees, including public safety personnel killed in the line of duty, are subject to an offset that eliminates the stacking. MACo stated that if the goal of the bill was to treat all dependents equally, then the offset should apply to all employees. Otherwise, counties would suffer a disparate fiscal impact as compared to private sector employers. The House Economic Matters Committee amended HB 1318 to address MACo's concerns but the committee amendments were rejected on the House floor after a short and somewhat confusing debate. The Senate Finance Committee amended SB 953 with similar amendments and also directed the Commission to reconvene the workgroup to examine the issue. However, the Committee recommited the bill after concerns were raised by the bill's proponents. Noting that MACo did not wish to impede the bill's implementation for private employers, MACo offered several potential compromises that would have allowed the bill to pass but not apply to counties until MACo's concerns had been reviewed. Firefighter and labor unions rejected MACo's proposals and the Committee held both bills.

HEAVY MACHINERY TAXATION

Companies engaged in the business of renting heavy machinery have raised concerns with taxation policy in Maryland conflicting with that in other states, raising concerns with predictability and compliance.

Legislation was introduced to grant a personal property tax exemption for the heavy equipment at issue. Counties have suggested that a true "local option" that may allow a shift of tax burden from one form to another may provide the needed relief, but without undermining local revenue structures or requiring unduly burdensome administration.

As legislation moved through the House and the Senate, the Senate bill, SB 685 was amended, passed and signed by the Governor. The new legislation ensures revenue neutrality, and establishes a process where the local jurisdiction would calculate the amount of personal property tax revenue that would have been collected to compare to the total dollars collected quarterly through the gross receipts tax. If the total dollars collected through the gross receipts tax is less than the amount of the estimated personal property tax, the company must pay the difference to the local jurisdiction. MACo's testimony outlines the amendments in more detail.

FOR MORE INFORMATION

RESOURCES

Contact a MACo Staff member who handles the issue of interest to you.
Contact a member of the MACo Legislative Committee, Tax Subcommittee or Education Subcommittee.
Visit the MD General Assembly for more bill information.
Find State Legislators contact information.