- 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.
- Requiring credit and debit card issuers to credit merchants with the amount of the interchange fee charged on the amount of tax and gratuity included in an electronic payment transaction.
- Prohibiting the use of electronic payment transaction data for certain purposes by certain entities.
- Making a violation of this Act an unfair, abusive, or deceptive trade practice within the meaning of the Consumer Protection Act.

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 107, 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 the methods to cancel the automatic renewal.
- Allowing consumers to terminate the automatic renewal in a manner that does not delay or obstruct their ability to do so.
- Requiring notice to consumers before the automatic renewal takes effect.
- Prohibiting automatic charges to a consumer's credit card without clear and conspicuous notice.
- Establishing that compliance with certain regulations is considered compliance with this Act.
- Declaring violations of this Act as unfair, abusive, or deceptive trade practices.

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 a policy premium based on the claims history of an insured where two or fewer of the claims within the preceding 3-year period were for occurrences where the insured was not at fault for the loss.

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 deemed to have hypertension for purposes of an occupational disease presumption if certain requirements are met.
- Demonstrating disablement for purposes of workers' compensation.

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

- Altering the penalties for causing serious physical injury or death of a vulnerable individual as a result of operating a motor vehicle in violation of certain laws.
- Defining "vulnerable individual" to include pedestrians, individuals working on highways, providing emergency services, or using various modes of transportation such as bicycles, farm equipment, motor scooters, motorcycles, and wheelchairs.
- Requiring individuals charged with such violations to appear in court and prohibiting prepayment of fines.
- Imposing penalties of imprisonment not exceeding 2 months, a fine not exceeding $2,000, or both.
- Allowing courts to order participation in a motor vehicle safety course and up to 150 hours of community service.
- Mandating the suspension of the driver's license of convicted individuals for at least 7 days but not more than 6 months.

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

- Establishing that any provision of a consumer contract that sets a shorter period of time to bring an action on or under the contract than required by state law is void.
- Declaring such provisions in consumer contracts as against state public policy, illegal, and void.
- Ensuring that courts do not give effect to such provisions and that defenses to liability under the consumer contract cannot be based on the shorter limitation period.
- Considering a violation of this Act as a violation of the Consumer Protection 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.
- 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.
- Allowing the council of unit owners to make an annual assessment against the unit owner responsible for the deductible.

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 persons subject to the digital advertising gross revenues tax who receive a notice of assessment from the Comptroller.
- Authorizing the Comptroller or the Comptroller's 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 be applicable 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.

- 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.
- 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.
- Allowing the council of unit owners to make an annual assessment against the unit owner responsible for the deductible.

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

- 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 each consolidated transportation plan.
- Mandating counties and local jurisdictions to consider wildlife movement and habitat connectivity when enacting, adopting, amending, or executing comprehensive plans.

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

- 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.
- Establishing rules of interpretation related to the uniformed services.

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

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.

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

compliance for a person that complies with the requirements by the State or Federal regulatory agency (p.6; lines 1-3)

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 the methods to cancel the automatic renewal.
- Allowing consumers to terminate the automatic renewal in a manner that does not delay or obstruct their ability to do so.
- Requiring notice to consumers before the automatic renewal takes effect.
- Prohibiting automatic charges to a consumer's credit card without clear and conspicuous notice.
- Establishing that compliance with certain regulations is considered compliance with this Act.
- Declaring violations of this Act as unfair, abusive, or deceptive trade practices.

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

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.

- 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 deemed to have hypertension for purposes of an occupational disease presumption if certain requirements are met.
- Demonstrating disablement for purposes of workers' compensation.

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

- Requiring the Workers' Compensation Commission to make the Fund a party to a claim filed against an uninsured employer.
- Authorizing a covered employee 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.

- 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.
- Ensuring that each fee or other charge for medical service or treatment is limited to the amount that prevails in the same community for similar treatment of an injured individual with a comparable standard of living.

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

- Altering the penalties for causing serious physical injury or death of a vulnerable individual as a result of operating a motor vehicle in violation of certain laws.
- Defining "vulnerable individual" to include pedestrians, individuals working on highways, providing emergency services, or using various modes of transportation such as bicycles, farm equipment, motor scooters, motorcycles, and wheelchairs.
- Requiring individuals charged with such violations to appear in court and prohibiting prepayment of fines.
- Imposing penalties of imprisonment not exceeding 2 months, a fine not exceeding $2,000, or both.
- Allowing courts to order participation in a motor vehicle safety course and up to 150 hours of community service.
- Mandating the suspension of the driver's license of convicted individuals for at least 7 days but not more than 6 months.

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

- Prohibiting a consumer contract from setting a shorter time to bring an action under or on the consumer contract than required by the law of the State.
- Declaring such provisions in consumer contracts as against state public policy, illegal, and void.
- Ensuring that courts do not give effect to such provisions and that defenses to liability under the consumer contract cannot be based on the shorter limitation period.

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

- 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.
- 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.
- Allowing the council of unit owners to make an annual assessment against the unit owner responsible for the deductible.

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

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 to pet owners 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.
- Defining compensatory damages to include the fair market value of the pet before death and the reasonable and necessary cost of veterinary care in the case of the death of a pet.
- Defining compensatory damages to include the reasonable and necessary cost of veterinary care in the case of an injury to a pet.

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

- 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.

- Requiring that a premium discount provided by the Fund to an insured be based on the income of the insured.
- Ensuring that the premium discount is actuarially justified.

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

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.