- 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.

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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 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.

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.

Effective Date is 10/1/25.

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.

Effective Date is 10/1/25.

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.