Dana M. Stein

Delegate of the State of Maryland

District 11

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  • April 10, 2008
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End-of-Session Report

April 10, 2008

After 90 days, the 425th session of the Maryland General Assembly drew to a close on April 7th at midnight. Thank you very much for giving me the opportunity to represent you in the House of Delegates. I am honored to serve the 11th District of northwest Baltimore County with my teammates Bobby Zirkin, Jon Cardin and Dan Morhaim, who share a common vision to improve our community. Your priorities are clear, and together, we have worked hard to reflect them.

The legislature made progress on several important issues, discussed below.

Budget

The budget approved by the General Assembly made $532 million in cuts, for a total of nearly $1.5 billion in cuts since the beginning of the term.

However, the budget (SB 90) continues the legislature's significant investment in K-12 education, with public schools receiving over $5.3 billion, an increase of $182 million. Recognizing the need to keep college education within reach of all Marylanders, the legislature also froze in-state college tuition for a third year. The budget also leaves a surplus balance of $235 million, providing the State with nearly $1 billion in cash reserves to weather any further slowing in the national economy.

Most importantly, the legislature repealed the computer services tax ("tech tax"), which had the potential to undermine the state's robust tech industry. The legislature replaced the tax with a mix of cuts and a temporary surcharge on Marylanders who earn more than $1 million in annual net taxable income.

Energy

Maryland is at a critical juncture in energy policy. State-wide demand for electricity is rising much faster than increases in supply, and Maryland faces the possibility of brown-outs by 2011 if nothing is done. Recognizing these challenges, the legislature enacted a comprehensive energy policy designed to stabilize rates while ensuring reliability for consumers. Bills passed this session: (1) create a Strategic Energy Investment Fund to stimulate investments in energy efficient technology and provide short term rate relief, (2) codify the Governor's initiative to reduce statewide per capita demand 15% by 2015, (3) double the renewable portfolio standard (the percentage of electricity that must come from renewable sources) over the next 14 years, (4) establish green building standards to improve energy efficiency in public construction projects, and (5) eliminate tax barriers facing residents who want to invest in clean energy systems. Taken together, this package of bills will begin the process of reducing energy consumption, stabilizing rates, and ensuring a safe and reliable energy supply.

BGE Rate Issues

Earlier this year, Constellation Energy and the State of Maryland filed lawsuits after the company's decision to terminate its agreement not to challenge the legislature's actions during the 2006 special session. The State's suit asked the court to prevent the company from rescinding more than $380 million in rate relief. Constellation's suit sought to eliminate nearly $40 million a year in credits to consumers, which would further destabilize the residential electricity market in the state. The company and the State reached a settlement in March, and the legislature ratified that settlement with HB 1626.

HB 1626 gives consumers nearly $2 billion in rate relief. The bill provides $187 million in direct relief in the form of a one-time $170 refund to 1.1 million BGE residential ratepayers by December 2008. The settlement and legislation also eliminate the $1.5 billion consumer obligation for the cost of decommissioning the Calvert Cliffs Nuclear Power Plant, and protect $346 million of the $386 million in credits to ratepayers the legislature secured during the 2006 special session.

The Chesapeake Bay

The legislature updated the Critical Areas law for the first time in nearly 25 years to control development in environmentally sensitive areas along the Chesapeake and Atlantic Coastal Bays. Passed in 1984, the law designated land within 1,000 feet of tidal waters and wetlands as "critical areas" and restricted development within these areas. The current 1,000-foot boundary was identified using 1972 state wetland maps that are still used for enforcement and variance allowances by local governments. The legislature enacted HB 1253 this year to: (1) give the Critical Area Commission new regulatory authority to strengthen enforcement of the law, (2) provide better protection of water quality and wildlife habitats, (3) establish new procedures for processing variances, and (4) update the wetland maps that are used to enforce the law. The legislation also requires a 200 foot setback for new subdivisions in especially sensitive areas and enhances penalties for developers who violate the law.

Mortgage Reform

Foreclosures have become a threat to stability in every county in the state. The rate of foreclosures grew 39% from the third to the fourth quarter of 2007, as 9,722 households entered the foreclosure process.

The cost of foreclosures goes beyond individuals losing their homes and any equity they have built up in their property. In Maryland, the average home sold in a foreclosure sale sells for 18.8% below market value.

The legislature passed a package of bills to protect homeowners, including emergency legislation to lengthen the foreclosure process, which will give homeowners an additional opportunity to negotiate with their lenders and save their homes. Described by The Washington Post as "among the most sweeping in the country," the reform package: (1) improves regulation of the industry and reforms lending practices by banning pre-payment penalties for sub prime loans, assuring a borrower's ability to repay a loan and verify sources of income, and increasing licensing requirements, (2) creates a mortgage fraud statute that covers all actors engaged in mortgage fraud, (3) bans the conveyance of real property in the foreclosure rescue context, and (4) requires a lender to wait 90 days after default before filing the foreclosure action.

Prescription Assistance

Medicare Part D, which provides prescription assistance to seniors, has created the "donut hole." Seniors must cover most of the cost of prescriptions between $2,510 and $5,725 in expenses. For many seniors, this means temporarily stopping treatment or picking and choosing which prescriptions to take.

The legislature took steps to help seniors facing this choice by passing HB 1492, which creates an innovative public-private partnership with CareFirst. CareFirst will contribute $4 million to fill in the donut hole for an estimated 7,500 seniors earning up to 300% of the federal poverty level. The program will expand to 30,000 seniors in coming years.

DNA Bill

Collecting DNA samples at the time of arrest can help solve crimes, prevent violent crimes and exonerate innocent people. SB 211 requires collection of DNA samples from offenders when they are charged with a crime of violence or felony burglary.

The bill gives police officers and prosecutors the tools they need to solve crimes while protecting the privacy of citizens not charged with or convicted of a crime. The bill requires individuals be informed that they have the right to have their sample expunged if the charges are dropped or they are acquitted, and prohibits the use of a DNA sample for genetic comparisons, disclosure of DNA information to unauthorized individuals, and storage of DNA information not directly related to an arrestee's identity.

My Legislation

I am very pleased that the General Assembly approved several of my bills. They include:

  • HB 1242, which establishes a task force to study how to improve financial literacy. The sub-prime mortgage crisis has highlighted the need to improve financial literacy, and my bill will set up a task force to study the problem and make recommendations, especially in the area of school curriculum.
  • HB 1337, which establishes a Maryland Clean Energy Center to help incubate new businesses in the fields of renewable energy and energy efficiency. The idea of a clean energy center is modeled on TEDCO (the Maryland Technology Development Corporation), which has been highly successful in developing emerging technology companies.
  • HB 1158, which amends the Safe Schools Reporting Act. The Act requires local boards of education to report incidents of harassment or intimidation against public school students that occur on public school property, at school activities or on school buses. Currently, only students, parents and close family members can report incidents of bullying under the Act. My bill allows school staff (teachers and other school personnel) to report bullying incidents.
  • HB 1350, which provides that if an advertisement for a product includes a rebate that is a "mail-in" rebate, the mail-in nature of the rebate must be clearly stated in the ad.
  • HB 981, which is a "bond bill" for the Weinberg Village at the JCC in Owings Mills. The Weinberg Village provides housing for low-to-moderate income seniors. The State's capital budget will provide $250,000 in funding for this project.

Other Developments

I introduced HB 785 to convert the Rosewood center property to a state park once the center closes. Many community residents have expressed concern that Rosewood not be developed after the center closes next year. Unfortunately, HB 785 did not pass.

I was also disappointed that the legislature did not enact HB 364, which would have enabled local governments to implement speed cameras in residential areas with a maximum speed limit of 45 mph and in school zones; and SB 309, which would have set the State on a path to reduce the greenhouse gas emissions that cause global warming. Hopefully, these bills will be enacted next year.

I am proud to be representing you in Annapolis and to be a part of the District 11 legislative team. Please contact me with any comments or feedback and if I can be of any assistance.

Best,

Delegate Dana Stein

410-841-3527

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