2010 Legislative Session Roundups

As legislative sessions come to a close, PSN highlights positive gains, legislative defeats, and unfinished business.  This Dispatch features state legislative session roundups for Connecticut, Florida, and Maryland.

Session Roundup: Connecticut

Progressive legislators in Connecticut made some very solid gains in their 2010 session by enacting major legislation on a number of policy fronts.

Budget, Tax and Revenue:  First and foremost, the General Assembly concluded their work on the state’s biennial budget last Friday by passing a near unanimous, bi-partisan $19 billion budget for the next fiscal year while also avoiding any increases to income, corporate or sales taxes.  While critics claim the approved budget does not address future structural deficits in 2012 and 2013, the legislature and Governor Rell agreed to close a $726 million deficit through a combination of measures.  Those steps include a plan to borrow $989 million, the anticipation of $366 million in additional federal stimulus funds, deferral of a $100 million payment to the state employees’ pension plan, improved revenue projections, reliance on a FY 2010 $140 million surplus and $177 million in spending cuts.

The plan to borrow $989 million is in the form of Economic Recovery Revenue bonds, which the legislature agreed to push out into 2012 — when lawmakers believe the economy will have turned around.  To cover the payment for servicing the annual debt, the legislature authorized a $29 million cut from an energy conservation fund and the continuation of a surcharge on electric bills, which comes to about $2.50 per month for the average household.

Among the spending cuts are modest premium increases in HUSKY (the state’s Children’s Health Insurance Program), reductions in funding for certain magnet schools, and further cuts to off-line accounts such as the Citizens' Election Fund, the Community Investment Act, and the Banking Fund.  According to Senate President Pro Tem Donald Williams, a balanced budget agreement was reached without any tax increases at the same time steering clear of cuts in aid to municipalities and avoiding deep cuts to social service, health care and education programs that residents still depend upon in these troubled economic times.

Some lawmakers questioned the wisdom of the $100 million cut in next year’s recommended contribution to the state employee pension fund. They pointed to the fact that contributions due in the last and current fiscal year have already reduced the fund by a total of $214.5 million. However, the concession package ratified by state employee unions in 2009 allows this cut to go through on the sole condition that revenue projections stay above $300 million of the anticipated levels in 2010-11.

Job Growth:  Recognizing that one of the best solutions for pulling out of the recession is through job creation, House and Senate leaders convened the Majority Leaders’ Job Growth Roundtable in 2009 to develop strategies for promoting facilitate short term job growth.  The Job Growth Roundtable included members of the House and Senate, labor leaders, entrepreneurs, economists and the academic community.  Recommendations from this task force are the basis for HB 5435, signed into law on May 6^th.  The legislation establishes an early-stage venture capital program, financing for the federal small business innovation research program and provisions to facilitate exporting state products and services.  The bill also provides for energy-efficient school building projects, establishes a jobs creation tax credit and provides for an insurance reinvestment fund.

Education:  The General Assembly took major steps in reforming and improving the state’s educational system.  SB 438, still awaiting action by the Governor, puts the state in a more advantageous position to qualify for the next round of federal funds through the Race to the Top program.  It also addresses Connecticut’s achievement gap, deemed to be one of the highest in the country.  SB 438 took a significant number of steps to enable it to receive Race to the Top funding, just some of which are:

• Creating an alternate route to certification for administrators
• The expansion of educational data systems
• Teacher evaluation tied to multiple indicators for student growth
• Creation of a performance evaluation advisory council to assist the state department of education in developing teacher evaluation guidelines, data collection and evaluation
• Establishing Innovation Schools
• Creating a statewide accountability plan

In order to address the achievement gap in Connecticut, SB 438 requires school boards with low-achieving schools to create and empower school governance councils made up mostly of students' parents or guardians.

Clean Energy and Green Jobs:  The Legislature enacted a forward thinking energy bill in 2010.  SB 493 signifies a major step towards a cleaner and more efficient energy future, creating and retaining jobs in clean energy industries in the process.  The bill provides for increasing the use of solar, wind, fuel cell and other renewable energy sources and creating innovative financing programs to help families and businesses invest in energy efficiency and clean energy technologies.  Other major components of the bill will be to reduce electric rates for families and businesses by giving the state’s Department of Public Utility Control (DPUC) procurement manager more flexibility in procuring power, creating and retaining green jobs through grant and loan programs, incentives for the installation of solar projects and other progressive innovations.  It also establishes consumer protections in the form of direct billing practices and written contract requirements.  This bill has also not yet been acted upon by the Governor.

Health Care:  A number of important health access and insurance reform measures were passed this session.  Some of the more major initiatives (all of which save HB 5295 have been signed by the Governor) include:

• HB 5002 is designed to assist small employers in finding and securing affordable insurance for their employees. This bill establishes the Connecticut Clearinghouse (effective July 1, 2010) where individuals and employers with less than 50 employees may obtain information about health insurance policies in Connecticut, including premium quotes that include coverage for part-time employees.
• Health insurance companies are now required to provide Connecticut consumers with an explanation of why they have been denied coverage for procedures because they are not medically necessary or not a covered benefit.  HB 5235 also supports the Office of the Healthcare Advocate (OHA), which provides assistance to consumers to help them challenge such denials of coverage and get the services they pay for.
• HB 5219 extends employer sponsored health coverage under the state’s “mini-COBRA” plan from 18 to 30 months after they are laid off. Recent federal legislation assists laid off employees by subsidizing 65% of their premiums for up to 15 months under federal COBRA, separate from the coverage addressed in this bill.
• With the passage of HB 5303 insurance companies will be required to submit annual report denial data to the Insurance Department for posting on its website and inclusion in the department’s annual Consumer Report Card. Employers and consumers will now be able to access this data and use it to compare the quality of different plans.
• HB 5295 gives municipalities the option of purchasing prescription drug coverage through the state employee plan, taking advantage of the bargaining power, low administrative costs and substantial discounts negotiated by the large state employee pool. The state comptroller recently began permitting the Teachers Retirement Board to use the state’s pharmaceutical buying power and with the addition of 16,000 retired teachers reduced costs on both the part of the teachers and the state for a combined $3 million.

Domestic Violence:  Because of an increase in media coverage highlighting some of the most tragic domestic violence incidents, Speaker of the House Chris Donovan exerted his leadership by convening a 2009 bipartisan legislative task force to study domestic violence issues.  The task force met with and received input from a score of advocates, survivors, law enforcement, service providers and state agency staff working on the front lines.  Out of these discussions and research came a series of recommendations aimed at making meaningful changes to provide more aid to victims of domestic violence.  The task force proposed three bills all of which passed in both the House and Senate.  But in addition to the three bills, the task force will continue to develop long term recommendations aimed at strengthening education and services.  All three are resting with the Governor.

• HB 5315 adds teen dating violence and domestic violence to the list of topics covered in teacher training programs.  This will empower educators to recognize and respond to warning signs ideally helping to reduce the incidence of domestic violence and prevent its escalation.
• HB 5246 requires the State Dept. of Social Services to make yearly transfers of marriage license surcharge funds to the Connecticut’s 18 regional domestic violence programs, thereby providing some relief to victims who need to break their leases.  The bill also requires the Department of Public Health to develop a public service announcement aimed at preventing teen dating violence and domestic violence.
• HB 5497 makes improvements to the justice system implementing a number of measures including: a GPS pilot program to monitor high risk offenders, improving the enforcement of protective orders, eliminating the look-back period for persistent offenders, implementing employment protections for family violence victims and promoting the development of dedicated domestic violence court dockets.

Housing for People with Disabilities:  This bill authorizes the Department of Economic and Community Development (DECD), in consultation with the Connecticut Housing Finance Authority (CHFA), to establish a program that encourages developers to build residential homes that are easy for people with disabilities to visit. What is commonly known as “visitable housing” is defined as having “visitable features” including wider interior doorways, accessible entry and bathroom facilities that are accessible to people with disabilities.  HB 5372 exempts developers from a requirement to obtain a State Building Code variance or exemption to construct visitable homes.  And, it authorizes municipal legislative bodies to adopt ordinances giving these developers a property tax abatement.

Missed Opportunities: 

• Paid Sick Days:  For the third year in a row, progressive lawmakers and advocacy groups including Connecticut Working Families and MomsRising led the way in support of legislation for paid sick days.  But with groups like the Connecticut Business & Industry Association lobbying hard against it, the bill met a similar fate as in years past and was defeated.  SB 63 managed to win approval in two Senate Committees but never made it to the full floor of the Senate.  This year's bill would have required businesses with 50 or more employees to let employees accrue up to 40 hours, or five days worth of paid sick time in addition to preventing employers from discriminating against a worker who requests or uses the time.  Senator Edith Prague, a staunch advocate for paid sick days, said the fight will resume once again in 2011 with a new governor and hopefully more support.
• Health Insurance Reform:  One notable health insurance reform bill that passed in the House but stalled in the Senate was HB 5090.  Responding to proposed double-digit rate hikes for 56,000 Connecticut residents, the bill would have put into place a new rate review process for individual health insurance policies, in effect holding insurance companies accountable for excessive increases in premium rates.

Session Roundup: Florida

Confronting a mid-year deficit of $147 million and a projected $4.7 billion FY2011 shortfall, revenue and economic issues were a major focus for Florida lawmakers.  The state's right-wing dominated Legislature also passed a series of divisive bills, including an extremely controversial effort endangering womens' reproductive rights, that will only serve to harm the state's working families and vulnerable populations.

Tax and Budget:  Florida was hit disproportionately hard by the recession.  Predominantly as a result of the burst of the housing bubble, the state lost almost 150,000 jobs and revenue plummeted 11.5 percent over the past year.  As of April 2010, the state's unemployment rate reached 12.3 percent, one of the highest in the nation.  The state's population and economic activity are decreasing as well.  

Unfortunately, the $70.4 billion budget the Legislature approved does little to address the daunting economic and fiscal outlook.  Legislators balanced the budget mainly through regressive cuts, federal Recovery funding, and gambling revenue.

• Cuts:  The Legislature approved a wide array of cuts that mainly hit programs that assist low and moderate income Floridians, including:  a 7 percent reduction in reimbursement rates to hospitals and nursing homes; the elimination of incentives to state workers to adopt foster children; cuts to funding for Health Start coalitions, which services at-risk infants and pregnant women, by $2.6 million; the reduction of the appropriation to Healthy Families, which aims to prevent child abuse, by $10 million; cuts of $10.5 million from state contributions to county health departments; a $5.6 million cut to development disabilities services; the reduction of public defender funding by 2.5 percent; the removal of almost $3 billion from the nonpartisan legislative office's budget; deep transportation trust fund cuts; and the reduction of state spending on a higher education scholarship program.
• Gambling:  Gov. Charlie Crist signed SB 622, which allows the Seminole Tribe to operate card games in some of their facilities for the next 5 years and exclusive rights to operate slot machines outside of South Florida for the next 20 years.  In return, the state will receive $435 million this year and approximately $1 billion over the next 5 years. 
• Federal Funds:  The budget relies on $2.3 billion in recovery funds and assumes $880 million in Medicaid assistance that the federal government has yet to enact.  Ironically, while the Legislature seeks increased federal action on state fiscal relief, lawmakers advanced a resolution, SCR 10, that calls on Congress to amend the Constitution and add a requirement for a balanced federal budget.
• Corporate Tax Breaks:  Conservative legislators successfully advanced SB 1752, dubiously entitled, "Jobs For Florida," which enacts $218.5 million in tax breaks and incentives to various industries over three years, including aerospace, biotechnology, entertainment, and boating.  There are also credits in the legislation for companies that hire long-term unemployed state residents. 

Health Care:  In response to the exponential growth of unregulated pain management clinics and an effort to curb growing prescription drug abuse, lawmakers passed "anti-pill mill" legislation, HB373, to prohibit a person from owning a pain clinic unless he or she is a physician with a license to practice in Florida, require clinic inspections, ban advertising of specific drugs, and limit the number of medications a clinic can distribute.  As part of the budget agreement, state employees will now be required to contribute to health care plans.

Having cut health care funding for Florida families, the Legislature engaged in additional political posturing by approving HJR 37, which proposes a state constitutional amendment to prohibit laws "from compelling any person, employer, or health care provider to participate in any health care system."  Floridians will consider this issue on the ballot in November.

Education:  Education issues dominated this legislative session.  SB 6, a radical effort to largely abolish teacher tenure was one of the most hotly debated bills this session.  While Gov. Crist initially supported the idea, he eventually vetoed the legislation after tens of thousands of phone calls, letters and emails flooded his office.  Other bills that were enacted included:

• SB 4 changes high school graduation requirements, shifts focus from current standardized testing to end-of-course assessments, and places tougher math and science standards as pre-requisites for graduation.
• Legislators considered higher education initiatives as well.  Students in state colleges will experience a 7 percent tuition increase.  SB 2126 expands tax credits to companies that offer college scholarships to low-income students.
• SB 2 proposes a constitutional amendment to ease classroom size mandates that were enacted in 2002.  Voters will consider the measure on the ballot this fall.
• SB 206 permits school districts to have scholarship signing ceremonies to honor students that excel academically which are similar to events that are held for athletes.

Endangering Reproductive Rights:  In the waning days of the session, Florida conservatives followed the lead of other right-leaning states and passed severe restrictions to womens' reproductive rights.  HB 1143 would force a woman to pay for and view an ultrasound before seeking an abortion, unless she signs a form that states that the decision not to review the ultrasound was made of her own free will, without "undue influence from any third party."  The bill would also ban most private insurance companies from funding abortions.  Sen. Nan Rich stated, "It is actually... the ultimate insult to women.  It is saying that women can’t... use their own judgment as to what they want to do with their bodies.”  Gov. Crist still has the opportunity to veto the bill.

Insurance:  The Legislature additionally enacted legislation benefiting the commercial and property insurance industries.  SB 2176 deregulates several insurance lines and excludes them from the rate filing and approval process. SB 2044 expedites the process in which property insurers apply for rate increases up to 10 percent and limits the time homeowners have to file a claim following a storm.

Traffic Safety:  HB 325, a bill that sets guidelines for a network of red-light cameras to help enforce traffic laws, was the result of years of legislative attempts to address road safety.

Protecting Children:  HB 119 places statewide restrictions on former sex offenders from loitering or prowling within 300 feet of a place where children congregate and approved controversial rules limiting where ex-offenders can live.

Protecting Seniors:  The state's Chief Financial Officer, Alex Sink, has prioritized the financial security of Florida's seniors and created the Safeguard our Seniors (SOS) Task Force.  The group recommended a bill that passed the Legislature this year.  SB 2176 protects seniors against manipulative insurance practices and annuities fraud.

Campaign Finance:  The Legislature approved a bill, HB 1207, to allow leaders in the House and Senate to operate campaign accounts to raise and spend unlimited amounts of cash, but the bill was ultimately vetoed by the Governor.

Notable Defeats:

• Ethics:  Rep. Keith Fitzgerald remarked, "[t]he biggest problem we have in this state, after the economy, is the collapse of confidence... in the political system."  After several political scandals in past years, Florida lawmakers considered a number of ethics bills, including HB 243, an effort to revamp legislative, lobbying, and consulting ethics rules, and HB 587, a bill that would have addressed certain conflict of interest issues, but the Legislature failed to act.
• Public Service Commission (PSC) Transparency:  To add accountability to PSC operations and address close relationships that have developed between the commission and utilities that it is responsible for regulating, lawmakers introduced HB 565, but the bill died in committee.

Session Roundup: Maryland

In spite of the recession, the Maryland Legislature maintained a balanced budget of $32 billion for fiscal year 2011.  During its 90-day session, the Maryland government focused on funding vital issues such as education as well as ensuring that more Marylanders gain access to health care.  As significant as these accomplishments are, several good bills did not pass the legislative threshold because of time wasted on less relevant matters.

The Budget:  Effective July 1, 2010, the proposed budget leaves the state with a projected cash balance of $829 million.  This includes setting aside $633 million, or five percent of the “Rainy Day Fund,” and $205 million in general fund surplus.  The legislature failed to enact "combined reporting" to stop multi-state corporations from evading state taxes.

Despite achieving a balanced budget this year, as the Maryland Budget & Tax Policy assesses, deficits will likely persist into future years.  Only 86% of the budget expenditures, they observe, come from ongoing state revenues, with heavy dependence on transfers from the federal Recovery Act and from special funds.

The legislature also approved, SB 106, the Job Creation and Recovery Tax Credit Act, which gives tax credits for businesses that hire out-of-work Marylanders and is expected that the law will create 4,000 new jobs.

Health Care:  Legislation passed during this session will help reinforce the success of federal health care reform.  HB 1564, the Maryland Health Insurance Plan/Administration of National Risk Pool Program, paves the way for swift and robust local implementation of federal health care reform by authorizing a benefit package and premium rate for individuals enrolled in the national high risk pool program.  Another bill that passed the Legislative threshold is the Kid’s First Express Lane Eligibility Act (HB 1375), which aims to help uninsured children get better health care.

To deter waste and fraud in the state health care system, a False Claims Act (SB 279/HB 525) will encourage whistleblowers with knowledge of false Medicaid claims to file suit and share in damages with the state, which could recoup for the state up to $20 million annually in fraudulent claims.

Workers’ Rights:  The legislature approved some important measures for working families this session.

• Unemployment Benefits:  A revision of unemployment benefits rules (SB 107/HB 91) will qualify the state for $127 million in federal stimulus funds by creating an Alternative Base Period (ABP) to count recent work history in calculating benefits, make amendments to the state’s existing part-time worker provision, and provide an additional 26 weeks of benefits to individuals participating in a state-approved training program for high-demand careers.
• Collective Bargaining for Child Care Providers:  Making permanent a 2007 Executive Order, HB 465 will allow child care providers to collectively bargain for better pay and keep the best qualified people in the profession.

• The Fairness in Negotiations Act, HB 243/SB 590, establishes a Public Education Labor Relations Board to administer and oversee labor relations laws for local boards of education and their employees.  This carefully crafted law puts a neutral and independent Board in charge of any disputes that cannot be solved by mediators.
• Rest Breaks for Retail Employees:  SB 789 ensures that workers receive at least a 15 minute rest break if they work four straight hours and a thirty minute rest break if they work six straight hours.

Foreclosure Reform:  Maryland enacted HB 472 mediation bill, which requires mortgage companies to help struggling homeowners keep their homes.  The law requires lenders to provide homeowners with a loss mitigation application, the state hotline number, a detailed foreclosure timeline, and the eligibility requirements to participate in a lender’s loan modification program.  The program emulates Nevada and cities like Philadelphia which have promoted mediation to deter foreclosure.

HB 711/SB 654 incorporates federal foreclosure rules, which allow most tenants the right to stay in a house declared in foreclosure for the rest of their lease, even after the property has been sold in foreclosure.  While incorporating the major provisions of the federal law, it omits the federal three-year sunset clause.

Clean Energy:  Maryland enacted a number of bills to promote alternative and reduced energy use:

• Thanks to SB 355/HB 801, Maryland will enjoy a more robust market for energy creation.  The law requires electric companies to provide payment to a customer-generator for excess generation credits through renewable sources.  It also alters the net energy metering program by changing the way an eligible customer-generator may accrue credits from excess generation from a kilowatt-hour (kWH) basis to a dollar basis.
• SB 277/HB 471 will accelerate Maryland’s solar energy production.  This bill comes at a time when Environment Maryland recently found that a quarter of Maryland homes would be ready to capture energy that is now being unused.
• The Green Maryland Act (SB 693), requires all state agencies and departments to establish internal recycling and composting plans, to phase in usage of 90% recycled paper, to use green contracting and procurement rules, and to establish in the Governor’s office a Green Purchasing Committee for the state.

Banning Toxins:  Maryland joined the trend of states that are banning products containing toxins. Two bills, SB213/HB 33 and SB 556, received the overwhelming support of the legislature.  The first bill banned Bisphenol-A (BPA), a toxic chemical found in baby bottles; BPA has been linked to cancer, developmental disabilities in children and reproductive problems in women.  In passing SB 556, Maryland became the 5th state to ban the use of Decabrominated Diphenyl Ether (Deca-BDE), a toxic flame retardant found in the plastic casings of televisions, linked to developmental problems in children and health problems in firefighters.

SB 311/HB 943 creates the Chesapeake Conservation Corps to help train young people and recent college graduates in green jobs while they work to clean and protect the Chesapeake Bay.

Smart Growth:  SB 760/HB 1155 establishes smart and fair growth criteria for funding transportation projects.  The bill requires the Maryland Department of Transportation to evaluate all state-funded transportation projects against existing state transportation goals, which include safety and security, environmental stewardship, and fixing existing roads and bridges first.  This bill makes it easier for the state to choose proposals that ensure transportation and land use decisions work together, providing more travel choices to Maryland citizens, especially for those who do not own cars.  It will also reduce environmental damage from transportation projects and improve access to jobs.

Smart, Green, and Growing — The Sustainable Communities Act of 2010 (SB285/HB 475), coordinates key revitalization programs such as Maryland Main Street Program and Community Legacy.  This key smart growth victory passed the House and on Sine Die unanimously passed the Senate.  It is expected to increase state expenditures by $15 million in fiscal 2012 to 2014.

Also sitting on the Governor’s desk is SB 780, which will create a way for nonprofit community developers and local governments to set up “affordable housing trusts” that will permit the trusts to develop affordable housing and then sell it to low or moderate-income purchasers at a below-market rate.  In return, the purchasers will own their house in fee simple for as long as they like but, when they decide to sell or if they die, their house must be sold at the same price for which they purchased it plus interest over the years.

Voter Protection:  The “No Representation Without Population Act,” SB 400/HB 496, requires that prisoner populations be counted in their home districts, not where they are incarcerated.  According to the ACLU of Maryland, “The legislation corrects an unfair enhancement of voting power that districts with a prison receive at the expense of the voting power of any other district without the prison."

SB 292 (also HB 217) sets the registration age at 16 years of age even though the individual still may not vote until the age of 18.  This law will allow all young people to register at the MVA when getting a drivers license, which will reduce barriers for civic participation.

Education:  The Maryland State Education Association expressed its satisfaction with the Maryland General Assembly which “continues to recognize that in order to maintain our great public schools, we must consistently have adequate funding.”  HB 350, the Early Learning Act, gives more young children access to affordable early learning programs by obtaining more funding from the federal government.  The legislature also succeeded at capping in-state tuition growth at 3% by approving SB 283/HB 470, which allocates $42.1 million to the Higher Education Investment Fund.

Promoting Responsible Business Practices:  SB 690 creates a new form of corporation, the “B” or “Benefits corporations”, such as those relating to environmental preservation, improving human health, or promoting the arts and sciences.  As the law’s author elaborates, “this will not only permit businesses to build public purposes alongside private ones into the very DNA of the corporation but it will signal to prospective shareholders, customers and other businesses the character of the corporation.”  Further, SB 690 provides legal protection to directors and executives if sued by shareholders for making a socially or environmentally responsible decision, like refusing a lucrative takeover bid by a polluter that would make big money, but thwart the company’s social purpose.  Maryland is the first state in the country to allow corporations to actually designate themselves as B corporations and register that way with the state.

Missed Opportunities:

• SB 910 and HB 522 would have required the creation of a state energy plan that is consistent with all state environmental laws. 
• SB 720/HB 1014 would have helped property owners afford clean energy projects by altering the requirements of the Clean Energy Loan Program. 
• SB 713/HB 827 would have required that all government and commercial building owners publicly disclose their building’s energy use. 
• SB 455 would have added televisions to the list of products regulated under the Maryland Efficiency Standards Act and would have given the Maryland Energy Administration the ability to set minimum energy efficiency standards for new televisions. As televisions have become larger, they consume more than three times the energy they did a decade ago
• Failure to enact HB 394, which would have required the Department of Juvenile Services to serve children in the juvenile services system with programming that provides females, on a regional basis, with a range and quality of services substantially equivalent to those offered to males.