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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.

leg committee unanimously approved using logo to put on coalition communications

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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.

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.

- 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.

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House Bill 582, titled "Labor and Employment - Exemptions From Overtime Pay - Administrative, Executive, or Professional Capacity," proposes changes to the exemption from overtime pay for certain employees in Maryland. Key provisions include:

- Altering the exemption from overtime pay for individuals employed in an administrative, executive, or professional capacity.
- Specifying that the exemption applies to individuals compensated on a salary or fee basis at not less than $1,128 per week or the amount established in federal regulations.
- Defining the primary duties of exempt employees, including management, discretion, and independent judgment, or work requiring advanced knowledge or creativity.

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.

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. I added amendment to put an insurance producer on the affordability study.

2/19 submitted amendment to add IIAM to study and gave to bill sponsor 2/8 Brett asked leg committee whether to offer amendment adding a producer to the WG. 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.

Submit Written testimony. 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.

2/21 leg comm said State Farm (for now), Progressive, and Safeco all write coverage in OC 2/19 I spoke with Wivell' who had Frederick Mutual who non-renewed his condo insurance. He said the Frederick Mutual rep (in house) failed to get back to him re: getting coverage from another carrier. As such, he had no coverage for 9 months and can't get coverage. 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

House Bill 1554, introduced by Delegate Moon during the 2025 Regular Session, proposes alterations to the definitions of "taxable price" and "taxable service" for the purposes of Maryland's sales and use tax. The bill aims to impose the sales and use tax on certain labor and services provided between business entities. Specifically, the bill identifies and outlines taxable services such as accounting, office support, data or information technology services, and several others if both the provider and buyer are business entities. The bill also specifies that the sales and use tax rate for these taxable services is set at 2.5% of the taxable price. If a different rate could apply to a sale or use of tangible personal property, digital code, digital product, or taxable service, the higher rate shall apply. The bill is set to take effect on July 1, 2025.

Do any agreements producers have with a client automatically renew (policies or otherwise)? The answer is they do not.

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SB 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.

- Requiring the State Workers' Compensation Commission to regulate fees and other charges for the reimbursement of prescription drugs and pharmaceutical services.
- Limiting reimbursements to a certain cost 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.
- Generally relating to reimbursement for prescription drugs and pharmaceutical services under workers' compensation law.

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

- Altering the start dates for the payment of contributions and the submission of claims for benefits from July 1, 2025, to July 1, 2027, and from July 1, 2026, to July 1, 2028, respectively.

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

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Senate Bill 446, titled "Condominiums - Property Insurance Deductibles - Unit Owner Responsibility," proposes changes to the responsibility for property insurance deductibles in Maryland condominiums. Key provisions include:

- 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.

SB 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 for tortious injury or death of the pet.

- Generally relating to tortious injuries to or death of pets.

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.

- 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.

- Increasing the maximum amount of compensatory damages that may be awarded to an owner of a pet from $10,000 to $25,000 for tortious injury or death of the pet.
- Generally relating to tortious injuries to or death of pets.

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

- Altering the membership of the Uninsured Employers' Fund Board from 3 to 5 members.
- Requiring the Board to establish reserves to meet potential losses of the Uninsured Employers' Fund.

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.