The 2011 Maryland General Assembly session ended this week. The Maryland Chamber took positions on 132 of the 2,370 bills and resolutions introduced. Here are a few highlights of important business issues considered during the session. You can view our complete session recap online here.
Business Taxes: Pressure to raise taxes remained strong due to the state’s budget gap. However, the Chamber and its business allies successfully held off efforts to:
- Implement a corporate income tax system of unitary combined reporting and jeopardize single sales factor apportionment for manufacturers.
- Extend the 6.25 percent individual income tax bracket on high wage earners.
- Impose a throwback rule for apportionment.
- Enact an alternative minimum assessment structured as a gross receipts tax.
Economic Development: The Maryland Chamber successfully led businesses in opposition to legislation that would have subjected 29 tax credits to automatic termination every five years unless reenacted by the General Assembly. The Maryland Chamber also supported passage of the Invest Maryland legislation that will stimulate job growth and economic development by allowing the state to borrow up to $100 million from future tax receipts to generate around $70 million to $75 million in venture capital to invest in emerging Maryland technology companies.
Health Care: Major legislation was enacted with the Chamber’s support that will establish the governing structure and powers of a Health Benefit Exchange. Important issues regarding the Exchange will be studied during 2011 and addressed by the General Assembly next session concerning powers, fee setting authority, marketing, and benefits offered by the Exchange.
Workplace Regulation: The General Assembly passed that will prohibit employers from using an applicant’s credit report or credit history in determining whether to deny employment, discharge the employee, or determine compensation. The Maryland Chamber opposed the legislation and was active in helping to ensure amendments were adopted to make the bill less onerous on employers.
The Chamber helped defeat additional bills that would have:
- Prohibited employers from using an individual’s criminal history when making personnel decisions.
- Increased Maryland’s minimum wage to nearly $10 an hour by 2013 and indexed it to the consumer price index beginning in 2014.
- Mandated that employers pay employees their normal compensation, less any government per diem, when employees are called to jury duty.
Transportation Funding: The Maryland Chamber and its business allies supported legislation that would have protected and enhanced transportation funding. We advocated funding increases as an investment in Maryland’s economic development and quality of life. The Maryland General Assembly did not move forward with the legislation, but the issue will return in future sessions.
Civil Liability: Several bills were considered that would have increased the exposure of businesses to lawsuits. The Maryland Chamber and other business groups helped to defeat legislation that would have prohibited the use of class action waivers in written agreements. This bill would have severely limited the usefulness of arbitration agreements and resulted in more disputes being litigated.
Special Session Looming: A special session will be held this fall to deal with congressional redistricting. Unfortunately, it looks like redistricting may not be the only topic on the special session agenda. There is growing talk that transportation funding and consideration of tax increases will also be discussed this fall. The Maryland Chamber of Commerce strongly believes that a special session is not the proper time to deal with important issues like these. Learn more.
View our complete 2011 General Assembly Recap here.
