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House Bill 15, titled "Corporations and Associations - Limited Worker Cooperative Associations - Authorization (Maryland Limited Worker Cooperative Association Act)," proposes changes to the formation and governance of limited worker cooperative associations in Maryland. Key provisions include:

- Authorizing the formation of limited worker cooperative associations.
- Establishing rules and procedures for the formation, governance, conversion, and dissolution of limited worker cooperative associations.

The act is set to take effect on October 1, 2026.

- Requiring entities that process electronic payment transactions to exclude the amount of tax and gratuity from the amount on which an interchange fee is charged.
- Mandating credit and debit card issuers to credit merchants with the amount of the interchange fee charged on the tax and gratuity included in an electronic payment transaction.
- Prohibiting the use of electronic payment transaction data for certain purposes.
- Making violations of these provisions an unfair, abusive, or deceptive trade practice under the Consumer Protection Act.

The act is set to take effect on October 1, 2025.

- Altering requirements for programs of instruction for applicants for limited lines credit insurance licenses.
- Requiring insurers to retain records of instructional materials and successful applicants for at least five years.
- Mandating that insurers make these records available to the Commissioner upon request.

The act is set to take effect on October 1, 2025.

House Bill 100, titled "Insurance Pooling - Public Entity - Definition," proposes changes to the definition of "public entity" for insurance pooling purposes in Maryland. Key provisions include:

- Expanding the definition of "public entity" to include a Resilience Authority.
- Allowing public entities to pool together to purchase casualty insurance, property insurance, or health insurance, or to self-insure against these risks.

The act is set to take effect on October 1, 2025.

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House Bill 100, titled "Insurance Pooling - Public Entity - Definition," proposes changes to the definition of "public entity" for insurance pooling purposes in Maryland. Key provisions include:

- Expanding the definition of "public entity" to include a Resilience Authority.
- Allowing public entities to pool together to purchase casualty insurance, property insurance, or health insurance, or to self-insure against these risks.

The act is set to take effect on October 1, 2025.

Grammer (1/29)

• wants to know what Luke is thinking presently
• he thought Luke didn't like it
• wanted to know if there was some compromise

West (1/29)

• remains strongly opposed

McKay (1/29)

• wanted to know if it was keeping up with inflation
• he voted no last year and feels the same

Valentine (2/5)

• was awaiting information he requested from the MIA re: impact on premiums in other states
• thinks he is a no

Waldstreicher (2/6)

• Senate will pass whatever the House brings to them

Schmidt (2/6)

• firmly opposed

Bartlett (2/7):

• she would like to know what an average award amount is (i.e. what was actually paid out)
  • wants to see how many are being paid out at the cap
• would also like to show current v. rate of inflation
• thinks the cap should be move up to reflect rate of inflation

2/14 met with Chair Clippinger and he said it would be great if the two side could work out a compromise but it is our understanding the trial bar wants a removal of the cap and nothing less. I committed to the Chair we would continue to work his committee.

House Bill 113, titled "Civil Actions - Noneconomic Damages - Personal Injury and Wrongful Death," proposes changes to the limitations on noneconomic damages in civil actions in Maryland. Key provisions include:

- Repealing certain limitations on noneconomic damages in civil actions for personal injury or wrongful death.
- Generally relating to noneconomic damages.

The act is set to take effect on October 1, 2025.

- Prohibiting insurers from increasing premiums based on the claims history of an insured if two or fewer claims within the preceding three-year period were for accidents or losses where the insured was not at fault.
- Amending existing laws to reflect this prohibition.

The act is set to take effect on October 1, 2025.

- Establishing that certain firefighters, fire fighting instructors, rescue squad members, advanced life support unit members, and members of the Office of the State Fire Marshal are presumed to have hypertension for purposes of an occupational disease presumption if certain requirements are met.
- Defining "disablement" for purposes of workers' compensation.
- Specifying blood pressure readings and medication requirements for a finding of hypertension.

The act is set to take effect on October 1, 2025.

- Establishing that any provision in a consumer contract that sets a shorter period of time to bring an action than required under state law is void.
- Considering a violation of this act as a violation of the Consumer Protection Act.
- Applying only to contracts entered into after the effective date of the act.

The act is set to take effect on October 1, 2025.

Effective Date is 10/1/25.

- Increasing the maximum amount of the council of unit owners' property insurance deductible for which a unit owner is responsible from $10,000 to $25,000 if the cause of damage originates from their unit.
- Requiring the council of unit owners to inform each unit owner annually in writing of their responsibility for the property insurance deductible and the amount of the deductible.
- Stating that any deductible amount exceeding $25,000 is a common expense.

The act is set to take effect on October 1, 2025.

This is a cost shift.

House Bill 456, titled "Civil Actions - Child Nonsexual Abuse and Neglect - Damages and Statute of Limitations," proposes changes to the statute of limitations and damages for civil actions related to child nonsexual abuse and neglect in Maryland. Key provisions include:

- Establishing a statute of limitations for civil actions related to child nonsexual abuse and neglect.
- Setting limitations on the damages that may be awarded under this act.
- Allowing appeals of interlocutory orders under certain circumstances.
- Applying the act prospectively and retroactively to certain actions barred by a previous statute of limitations.

The act is set to take effect on October 1, 2025.

- Establishing an appeal process for individuals subject to the digital advertising gross revenues tax who receive a notice of assessment from the Comptroller.
- Authorizing the Comptroller or their designee to issue an order to correct an erroneous assessment of the digital advertising gross revenues tax, subject to certain conditions.

The act is set to take effect on January 1, 2026, and will apply to assessments made after December 31, 2025.

- Authorizing the board of directors of a condominium to increase the amount of assessments levied in a fiscal year to cover common expenses other than reserves by not more than 5% of the total assessments levied for common expenses other than reserves in the previous fiscal year.
- Allowing this increase notwithstanding any provision of the declaration, articles of incorporation, or bylaws restricting assessment increases or capping the assessment that may be levied in a fiscal year.

The act is set to take effect on October 1, 2025.

- Altering the exemption criteria for individuals employed in administrative, executive, or professional capacities.
- Defining specific salary and duty requirements for these exemptions.
- Including various other exemptions, such as those for nonadministrative camp employees, minors working limited hours, outside salespeople, and certain family members of employers.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/hb/hb0582F.pdf).

- Establishing strict liability for damages and civil penalties for those who design or create AI software capable of causing personal injury or death.
- Prohibiting the intentional, knowing, or negligent design or creation of such AI software.
- Imposing criminal penalties, including imprisonment and fines, for violations.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/hb/hb0589F.pdf).

- Increasing the maximum amount of the council of unit owners' property insurance deductible for which a unit owner is responsible from $10,000 to $20,000 if the cause of damage originates from their unit.
- Requiring the council of unit owners to inform each unit owner annually in writing of their responsibility for the property insurance deductible and the amount of the deductible.
- Stating that any deductible amount exceeding $20,000 is a common expense.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/hb/hb0636F.pdf).

- Establishing the Maryland Connectivity Coalition to foster collaboration among state and federal agencies, NGOs, and other stakeholders.
- Creating the Wildlife Connectivity Fund to protect threatened and endangered species and reduce vehicle-wildlife collisions.
- Requiring the State Highway Administration to include wildlife crossing information in transportation plans.
- Mandating counties and local jurisdictions to consider wildlife movement and habitat connectivity in comprehensive plans.

The act is set to take effect on July 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/hb/hb0731F.pdf).

- Establishing rules of interpretation related to the uniformed services.
- Altering the rule of interpretation for "veteran."
- Applying certain provisions of law governing the regulation of business, economic development, insurance, and labor and employment to all uniformed services, rather than only the armed forces.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/hb/hb0895F.pdf).

Key Provisions:

1. Maryland Health Benefit Exchange Fund:

   • Section 31-107 (Page 2-5): Establishes the Maryland Health Benefit Exchange Fund to support various health programs, including the new State-Based Health Insurance Subsidies Program.

2. State-Based Health Insurance Subsidies Program:

   • Section 31-125 (Page 6-7): Mandates the creation of a program to provide subsidies to individuals purchasing health insurance in the individual market, particularly to mitigate the impact of reduced federal advance premium tax credits.

3. Program Design and Implementation:

   • Section 31-125(c) (Page 7): The program must maintain affordability and target individuals affected by increased premium percentages in 2026 and 2027 compared to 2025.

4. Funding and Expenditures:

   • Section 31-107(f) (Page 4-5): Specifies that the fund can be used for the new subsidies program in fiscal years 2026 through 2028.

5. Contingency and Effective Dates:

   • Section 2 (Page 8): The act is contingent on the federal government reducing or eliminating advance premium tax credits, with specific conditions for notification and implementation.

Effective Date:

• General Provisions: Effective June 1, 2025, and remains in effect until June 30, 2028, subject to the conditions outlined in Section 2.

Purpose: State-Based Health Insurance Subsidies: Establish subsidies to mitigate the impact of reduced federal advance premium tax credits. Key Provisions: Program Implementation: Maryland Health Benefit Exchange to implement the program. Provide funding from the Maryland Health Benefit Exchange Fund. Consumer Protections: Maintain affordability for individuals purchasing health benefit plans. Target individuals experiencing increased premium percentages in 2026 compared to 2025. Funding and Expenditures: Use the Maryland Health Benefit Exchange Fund for subsidies in fiscal years 2026 and 2027. Reporting and Tracking: Monthly Tracking: Track expenditures, average number of subsidy recipients, average subsidy amounts, and impact on rates. Post tracking information on the Exchange website and include it in the annual report. Effective Date: July 1, 2025

Floor amendments removed language re: RBC requirements and reports by MAIF. I am unclear what the intent is at this time.

Purpose: Automobile Insurance Fund and Affordability Study: Regulate and review the Maryland Automobile Insurance Fund's financial practices and conduct a study on the affordability of automobile insurance. Key Provisions: Risk-Based Capital Level: The Fund must calculate and report its risk-based capital level. Maintain total adjusted capital above the company action level RBC. Rate Determination and Filing: Subject to prior approval rate making for specific periods. Review and approve the Fund's RBC plan if total adjusted capital falls below certain levels. Workgroup on Affordability: Establish a workgroup to study automobile insurance affordability. Include members from the Senate, House of Delegates, Maryland Insurance Administration, and other relevant stakeholders. Report findings and recommendations to the Governor and General Assembly by January 1, 2026. Effective Date

2/14 Met with Chair Clippinger. He said it was discussed as a 50% tax but was drafted differently. He sponsored as a courtesy to Chairman Barnes. I got the sense that the bill was not going anywhere.

Purpose: Punitive Damage Awards in Civil Actions: Regulate the awarding of punitive damages in civil cases by defining criteria and imposing a surcharge. Key Provisions: Gross Negligence Requirement: Punitive damages may be awarded only if the plaintiff proves by clear and convincing evidence that the defendant acted with gross negligence. Surcharge on Punitive Damages: State Court Administrator will assess a surcharge equal to 50% of the punitive damages award. The surcharge is paid by the defendant and deposited into the Blueprint for Maryland's Future Fund. The jury will not be informed of the surcharge. Implementation: Effective Date: October 1, 2025. Application: Applies prospectively and does not affect actions filed before the effective date.

Bill was amended to apply only to homeowner's and renter's insurance. Is not crossfiled. We will lobby Chair Beidle (former insurance agent) in the Senate Finance Committee.

Key Provisions: Property and Casualty Insurance: Prohibits a property and casualty insurer from denying coverage based on a prior lapse in coverage of the applicant if the lapse was due to the choice of the applicant and not due to losses incurred or claims history. Effective Date: October 1, 2025

- Requiring electric bicycles to be titled and registered by the Motor Vehicle Administration.
- Mandating electronic submission of applications for certificates of title and registration.
- Requiring electric bicycle owners to maintain certain security.
- Allowing insurers to exclude certain benefits from policies for electric bicycles.
- Defining electric bicycles and their classifications.
- Establishing fees for certificates of title and annual registration.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0014F.pdf).

Senate Bill 49, titled "Consumer Protection - Automatic Renewals," proposes changes to the regulation of automatic renewal offers in Maryland. Key provisions include:

- Requiring clear and conspicuous presentation of the terms of automatic renewal offers before the subscription or purchasing agreement is fulfilled.
- Providing consumers with an easily accessible disclosure of cancellation methods.
- Allowing consumers to terminate automatic renewals without delay or obstruction.
- Mandating notice to consumers before the automatic renewal takes effect.
- Prohibiting automatic charges to a consumer's credit card without clear notice.
- Establishing that compliance with certain regulations is considered compliance with this act.
- Defining violations as unfair, abusive, or deceptive trade practices.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0049F.pdf).

Senate Bill 102, titled "Insurance Pooling - Public Entity - Definition," proposes changes to the definition of "public entity" for insurance pooling purposes in Maryland. Key provisions include:

- Expanding the definition of "public entity" to include a Resilience Authority.
- Allowing public entities to pool together to purchase casualty insurance, property insurance, or health insurance, or to self-insure against these risks.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0102F.pdf).

- Establishing that certain firefighters, fire fighting instructors, rescue squad members, advanced life support unit members, and members of the Office of the State Fire Marshal are presumed to have hypertension for purposes of an occupational disease presumption if certain requirements are met.
- Defining "disablement" for purposes of workers' compensation.
- Specifying blood pressure readings and medication requirements for a finding of hypertension.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0173F.pdf).

- Requiring the Workers' Compensation Commission to make the Fund a party to a claim filed against an uninsured employer.
- Authorizing covered employees or their dependents to apply to the Director of the Fund for payment.
- Altering requirements related to notice of claims, raising of issues, payment of awards, and reimbursement of awards.
- Requiring the Fund to pay certain additional awards under specific circumstances.

The act is set to take effect on July 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0227F.pdf).

- Altering requirements for programs of instruction for applicants for limited lines credit insurance licenses.
- Requiring insurers to retain records of instructional materials and successful applicants for at least five years.
- Mandating that insurers make these records available to the Commissioner upon request.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0228F.pdf).

- Requiring the State Workers' Compensation Commission to regulate fees and other charges for the reimbursement of prescription drugs and pharmaceutical services.
- Limiting reimbursements to an index or indexes based on acquisition cost, calculated on a per-unit basis, as of the date of dispensing, and may include reasonable dispensing fees.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0306F.pdf).

- Prohibiting consumer contracts from setting a shorter time to bring an action than required by state law.
- Declaring such provisions illegal and void.
- Ensuring courts do not enforce these provisions and that defenses based on shorter limitation periods are not valid.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0413F.pdf).

- Increasing the maximum amount of the council of unit owners' property insurance deductible for which a unit owner is responsible from $10,000 to $25,000 if the cause of damage originates from their unit.
- Requiring the council of unit owners to inform each unit owner annually in writing of their responsibility for the property insurance deductible and the amount of the deductible.
- Stating that any deductible amount exceeding $25,000 is a common expense.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0446F.pdf).

- Authorizing the board of directors of a condominium to increase the amount of assessments levied in a fiscal year to cover common expenses other than reserves by not more than 5% of the total assessments levied for common expenses other than reserves in the previous fiscal year.
- Allowing this increase notwithstanding any provision of the declaration, articles of incorporation, or bylaws restricting assessment increases or capping the assessment that may be levied in a fiscal year.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0464F.pdf).

Effective Date is 10/1/25.

Senate Bill 581, titled "Civil Actions - Tortious Injury to or Death of Pet - Compensatory Damages," proposes changes to the compensatory damages awarded for tortious injury to or death of a pet in Maryland. Key provisions include:

- Increasing the maximum amount of compensatory damages that may be awarded to an owner of a pet from $10,000 to $25,000.
- Applying to cases where a person tortiously causes an injury to or death of a pet while acting individually or through an animal under their ownership, direction, or control.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0581F.pdf).

- Repealing certain limitations on noneconomic damages in civil actions for personal injury or wrongful death.
- Generally relating to noneconomic damages.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0584F.pdf).

- Establishing an appeal process for individuals subject to the digital advertising gross revenues tax who receive a notice of assessment from the Comptroller.
- Authorizing the Comptroller or their designee to issue an order to correct an erroneous assessment of the digital advertising gross revenues tax, subject to certain conditions.

The act is set to take effect on January 1, 2026, and will apply to assessments made after December 31, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0605F.pdf).

- Requiring that premium discounts be based on the income of the insured.
- Ensuring that the discounts are actuarially justified.

The act is set to take effect on October 1, 2025. You can find more details [here](https://mgaleg.maryland.gov/2025RS/bills/sb/sb0697F.pdf).

Purpose: Regulate Telematics in Vehicle Insurance: Ensure transparency and fairness in the use of telematics systems by insurers. Key Provisions: Telematics Disclosure: Insurers must disclose the use of telematics to policyholders. Data Collection Limits: The Maryland Insurance Administration will limit the types and amounts of data collected through telematics. Use of Telematics Data: Prohibits insurers from using telematics data to set premiums or make decisions about policy cancellations, non-renewals, or underwriting. Appeals Process: Establishes a process for policyholders to correct or appeal erroneous telematics data. Regulatory Oversight: Requires periodic audits and reports on the use of telematics systems to ensure fairness and accuracy. Effective Date: October 1, 2025.