Legislation that would address some of the business community’s concerns over the Workplace Fraud Act will be heard by the Senate Finance Committee tomorrow. The bill, SB 272, would repeal the presumption that an employee-employer relationship exists when payment is made for work performed and revise how the term “independent contractor” is defined within the Workplace Fraud Act.
Under the current law, a worker is defined as an employee or independent contractor using the ABC test. The Maryland Chamber believes the ABC test standards used under the Workplace Fraud Act make it virtually impossible for an employer to meet compliance, due to its presumption of an employer-employee relationship, and its burden of proof requirement for employers. The Chamber believes the IRS test is a better solution that creates a more level playing field. This legislation would adopt that standard.
The Maryland Chamber thanks Senators Douglas J.J. Peters (D-Dist. 23), John Astle (D-Dist. 30), Allan Kittleman (R-Dist. 9) and Katherine Klausmeier (D-Dist. 8) for their leadership on this issue. For more information, contact Allyson Black at .(JavaScript must be enabled to view this email address).
Maryland Chamber Vice President of Government Affairs Allyson Black urged the House Appropriations Committee to support legislation that would propose a constitutional amendment to restrict transfers from Maryland’s Transportation Trust Fund (TTF) for non-transportation purposes.
“Investing in our transportation infrastructure will create jobs and help keep Maryland competitive, but we have to ensure the integrity of the TTF,” Black said. “The Maryland Chamber strongly supports the establishment of a secure firewall to protect Maryland’s transportation dollars.”
The bill, HB 146, sponsored by Del. Susan Krebs (R-Dist. 9B) and 38 others, would place constitutional restrictions on transfers from the TTF and use of TTF monies. It would require TTF funds to only be used for construction and maintenance of an adequate highway system or other transportation-related purpose and to pay principal and interest on transportation bonds.
The Chamber’s Transportation Coalition will be reviewing more bills this week, including additional bills to protect Maryland’s transportation dollars. For more information, contact Allyson Black at .(JavaScript must be enabled to view this email address).
Maryland Chamber Vice President of Government Affairs Ron Wineholt submitted testimony urging the Senate Budget & Taxation Committee to support Governor O’Malley’s legislation (SB 239) establishing the Maryland Innovation Initiative to promote the commercialization of university research.
Despite the state’s excellent research universities and high rankings in science and technology, Maryland underperforms when it comes to technology transfer.
“Through better coordination and promotion of commercialization opportunities Maryland can increase the number of high tech jobs in our state,” Wineholt said. “The Maryland Chamber believes this initiative will enhance our state’s reputation as a national leader in technology and biotech investment.”
For more information, contact Ron Wineholt at (410) 269-0642, (301) 261-2858 or .(JavaScript must be enabled to view this email address).
Legislation (SB 269) to impose a system of mandatory unitary combined reporting for corporations will be heard by the Senate Budget & Taxation Committee on Wednesday, February 22.
The Maryland Chamber opposes combined reporting because it would cause huge shifts in tax liabilities among Maryland businesses engaged in interstate commerce. Such a tax change is ill-advised in the current economic climate. The Maryland Business Tax Reform Commission evaluated the state’s business tax structure, and recommended against implementing combined reporting at this time. Maryland’s competitor states do not use combined reporting.
If this issue impacts your business, and you’d like to testify during the hearing, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
The Maryland Chamber supports legislation that would make a semester-long course in financial literacy a graduation requirement in Maryland public schools.
“It is important that young adults have financial literacy skills in order to successfully cope with credit, debt and household finances,” Maryland Chamber President & CEO Kathy Snyder, CCE said. “With record numbers of foreclosures and personal bankruptcies, we must do more to encourage individuals to responsibly manage their finances. We believe a mandatory course in financial literacy is an important step in the right direction.”
This bill would require the State Board of Education to develop curriculum content for a semester-long course in financial literacy. Each local board of education must implement the curriculum in every high school under the board’s jurisdiction, and students must complete the course in order to graduate from high school.
The Senate bill, SB 307, which is sponsored by Sen. Katherine Klausmeier (D-Dist. 8), will be heard by the Education Health and Environmental Affairs Committee on February 15. The Senate passed similar legislation last year, but the bill never received a vote in the House Ways & Means Committee. For more information, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
Posted by Will Burns on 02/08 at 12:02 PM
(0) Comments •
Permalink •
The first wave of legislation to increase business taxes has been introduced in the Maryland Senate. The proposals include combined reporting, “millionaires’ tax,” and a gross receipts tax.
Combined Reporting: SB 269 would alter Maryland’s income tax laws to impose a system of mandatory unitary combined reporting for corporations. The Maryland Chamber has opposed combined reporting for a number of years. Instituting combined reporting would cause huge shifts in tax liabilities among Maryland businesses engaged in interstate commerce. Such a tax change is ill-advised during the current economic climate. The Maryland Business Tax Reform Commission evaluated the state’s business tax structure, and recommended against implementing combined reporting at this time. Maryland’s competitor states do not use combined reporting.
Millionaires’ Tax: SB 249 would reimpose the 6.25 percent personal income tax bracket on taxpayers with a net taxable income of over $1 million. The Maryland Chamber opposes this legislation because this tax falls disproportionately on small business owners, who need to reinvest funds into their companies to create jobs. Raising individual income taxes will make Maryland less competitive on a major tax with which we are over-reliant and uncompetitive. The Department of Legislative Services reports that Maryland has the 2nd highest state and local income tax revenue as a percent of personal income.
Gross Receipts Tax: SB 248 would impose an alternative minimum tax on corporations based on a percentage of their gross receipts. The Maryland Chamber opposes this bill. Gross receipts taxes are unfair because they are not based on profits or an ability to pay, and penalize industries that have high gross receipts but low net margins. Similar legislation was enacted and later repealed in New Jersey due to the negative impact on business. The bill would significantly increase business taxes on Maryland employers.
No hearing dates have been scheduled on these bills, but we will keep you up to date as legislative action progresses. For more information, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
The Governor’s Health Exchange bill (SB 238/HB 443) was introduced and will be heard by the Senate Finance Committee on February 22. Last session, the Chamber supported legislation establishing the Exchange, but several major issues were deferred for further evaluation. We covered some of the interim work here and here.
This bill addresses several issues relating to the authority of the state Health Benefit Exchange and the future structure of health insurance markets in Maryland. Provisions include:
Establishing requirements for carriers to offer plans in the Exchange and the private market;
Providing licensure or certification for Exchange Navigators;
Allowing brokers to sell policies in the Exchange and private market;
Maintaining separate markets for the individual and small group markets;
Keeping the small group employee size at 50 until 2016; and
Providing a mechanism to establish essential health benefits in 2012.
The Maryland Chamber believes that this bill resolves many of the issues relating to the role of the Health Benefit Exchange and the functioning of the health insurance market in Maryland. We have concerns regarding language in the bill that allows the Exchange to engage in selective contracting. This provision could enable the Exchange to exclude otherwise qualified carriers from competing in the Maryland marketplace and allow the Exchange to set requirements beyond those provided in federal law. The Chamber supports the bill with amendments to address the selective contracting concern.
For more information, contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
Last week we mentioned the provision in the Governor’s Budget Reconciliation and Financing Act (BRFA) (SB 152/HB 87) that would impose the state sales & use tax on the sale of “digital products.”
The Maryland Chamber’s Legislative Committee met with the Governor’s Chief Legislative Officer Joe Bryce to discuss the administration’s agenda earlier this week. During that meeting, Bryce agreed that the language in the bill needs to be clarified. He said that more work would be done to tighten the language, but that it is the Administration’s intent to tax the purchase of canned software and other products that could be bought in a store in a tangible form.
We’ve heard concerns from a number of companies, but we’d like more feedback from members. You can review the language on pages 33 to 42 of the bill. How would this impact your business? Give us your feedback by emailing Ron Wineholt at .(JavaScript must be enabled to view this email address).
The Maryland Health Benefit Exchange announced the formation of the Exchange Implementation Advisory Committee (EIAC). The primary role of the EIAC will be to engage senior business, insurance and technology leaders and leverage their knowledge and experience to help make the exchange successful for all Marylanders.
The Exchange is actively seeking senior IT and Operations executives from organizations that intend to participate as insurance carriers or service providers in the Maryland Health Benefit Exchange or SHOP. These include, but are not limited, to: CIO’s, COO’s, Directors of Architecture, and ACA Program Directors from:
Health Insurance Carriers in the fully-insured Individual and Small Group Markets,
Medicaid Managed Care Organizations (MCOs),
Third Parity Administrators (TPAs),
Insurance Co-Operatives (Co-Ops)
The Exchange will also reserve slots for other stakeholders and technology providers with experience in online user experience, system design and implementation, health industry CMS technology best practices and more.
All ten members of Maryland’s congressional delegation have confirmed their attendance at next week’s Congressional Delegation Dinner. Members of the House of Representative may arrive late because of a vote scheduled that evening, but they all expect to attend. The event will be held on Monday, February 6, 2012, at Martin’s Crosswinds in Greenbelt. The event is nearly sold out, but there are a few spots remaining. Register today!
During this town hall meeting-style event, Maryland’s congressional delegation and Maryland Chamber members will discuss important federal business issues, like the economy, transportation funding, business and environmental regulation, and more. Each member of the delegation will briefly outline priorities and discuss how the delegation works together to get results for Maryland. This is the Maryland Chamber’s fastest growing event. Reserve your seat today.
Registration is $85 per person for Maryland Chamber members. The nonmember rate is $150. Register online or contact Kristen Solis at (410) 269-0642, (301) 261-2858 or .(JavaScript must be enabled to view this email address).
Governor Martin O’Malley proposed applying the state’s sales tax to gasoline as a way to increase transportation funding revenue.
His proposal would phase in the state’s 6 percent sales tax at 2 percent per year for the next three years, with some sort of breaking mechanism to limit the tax if the price of gas spikes. During an interview on WTOP radio, he also agreed that the state should take action to ensure that money raised for transportation funding aren’t used for unrelated purposes.
Chamber President & CEO Kathy Snyder thanked the Governor for his leadership on this important issue and said the organization would review the details of the proposal once the bill is filed, which is expected to happen within the next week.
If you have any questions, contact Allyson Black at .(JavaScript must be enabled to view this email address).
More than 350 business leaders attended Business Day in Annapolis last week. Thank you to everyone who took time away from your busy schedules to join us in Annapolis to learn more about the issues that will dominate the 2012 session and visit your lawmakers.
Members of the Statewide Alliance for Restoring the Trust (START) rallied in Annapolis last week to encourage lawmakers to protect Maryland’s Transportation Trust Fund and increase funding for much needed transportation projects in Maryland.
“By investing in our transportation infrastructure we will create jobs and keep Maryland competitive,” Maryland Chamber President & CEO Kathy Snyder, CCE said.
START is an alliance of more than 50 organizations and businesses created last year to promote many of the recommendation’s of the state’s Blue ribbon Commission on Transportation Funding. Members include the Maryland Chamber, Greater Baltimore Committee, Greater Washington Board of Trade and many others.
The Maryland Chamber believes that transportation infrastructure investments have a positive impact on economic development and quality of life. The business community relies on a reliable transportation network to transport goods and services. We think Maryland should do more to invest in the maintenance and improvement of roads, bridges, highways, ports and rails. That starts by protecting Maryland’s Transportation Trust Fund (TTF) to ensure that transportation dollars aren’t used for unrelated purposes.
The Governor is expected to announce his transportation initiatives soon. We’ll keep you updated. If you have any questions, contact Allyson Black at .(JavaScript must be enabled to view this email address).
Photo courtesy of the Greater Baltimore Committee. View more photos from the rally online here
A provision of the Governor’s Budget Reconciliation and Financing Act (BRFA) (SB 152/HB 87) is drawing increased scrutiny due to its potential impact on Maryland’s technology sector. Pages 33 to 42 of the bill would impose the state sales & use tax on the sale of “digital products.” It’s easy to initially assume that the new language only applies to the listed items of downloaded music, books and e-cards. However, a closer look makes it clear that the language is very expansive and would apply to a vast array of products that are downloaded electronically. Legislative staff has confirmed the expansive interpretation. The Comptroller’s staff told the House Ways & Means Committee last week that they need to look at the language more closely to determine its impact.
We will work to ensure that this issue does not become a repeat of the 2007 Tech Tax, which threatened to cripple Maryland’s technology businesses. For further information contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
We don’t often hear Senate President Miller, House Speaker Busch, and Minority Leaders Pipkin and O’Donnell all agree on legislative issues. But we heard it twice yesterday morning during a Q&A session at the Chamber’s Business Day in Annapolis event. All agreed that we would not see changes this session to the state’s minimum wage, living wage, and prevailing wage laws. More importantly, all four leaders agreed that it would be a bad idea to put sunset termination dates on the state’s job creation tax credit programs. For further information contact Ron Wineholt at .(JavaScript must be enabled to view this email address).
