***Click Here for a list votes by the Maryland State Senate on key industry issues***

***Click Here for a list votes by the Maryland House of Delegates on key industry issues***

The 2009 Maryland General Assembly session adjourned on April 13th. Of the 2,675 bills introduced this year, RAM tracked and lobbied nearly 100 bills on behalf of the industry. Of the bills RAM opposed, we successfully defeated all but one (unemployment insurance for part-time workers). Thanks to all RAM members who contributed to our success this year by contacting legislators about important industry issues. Our victories would not have been possible without the help of RAM members. We also sincerely appreciate the time and hard work of RAM’s Government Affairs Committee, which discussed legislation at length before determining the Association’s position. If you have questions about these or other issues, call Melvin or Kesa in the RAM office at 410-290-6800. To get more detailed information about the legislative session, visit the Maryland General Assembly website at http://mlis.state.md.us.

The following information is a detailed summary and final outcome of our priority issues during this year’s legislative session:

ALCOHOL TAX INCREASES:

FAILED

There were several proposals this year to increase alcohol taxes. Although the increased revenues would have benefited a variety of special interests, the General Assembly made it very clear from the beginning of the year that there would be little appetite for tax increases of any sort during this session. Nonetheless, RAM joined our industry partners in opposing all attempts to increase alcohol taxes. While these proposals were heard by committees, they were never considered for votes.

 

HOUSE BILL 126/SENATE BILL 418 - Unredeemed Gift Card Value:

FAILED

This bill, sponsored by Delegate Joseline Peña-Melnyk (D-21, Prince George’s) and Senator Catherine Pugh (D-40, Baltimore City), would have required businesses to remit the value of unredeemed gift cards/gift certificates to the State Comptroller. In addition, the bill would have required sellers to keep on file the names and addresses of all gift card/gift certificate purchasers, and keep track of the unredeemed values. RAM strongly opposed this bill.

The House Economic Matters Committee rejected this bill on 2/13/09 by a vote of 2 to 18.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/HB0126.htm

 

HOUSE BILL 310/SENATE BILL 270 - Unemployment Insurance for Part-Time:

PASSED

This bill, sponsored at the request of the Governor, allows part-time employees who work more than 20 hours per week to qualify for unemployment insurance benefits if they are laid off through no fault of their own. RAM strongly opposed this bill because it will significantly increase unemployment insurance rates for all employers. Originally, the bill would have provided benefits to part-time employees who worked more than 15 hours per week. After realizing that the Governor’s support for the bill was helping to push it to passage, RAM supported a last-minute amendment to change the minimum hours to 20 in an effort to mitigate the impact on small business.

HB 310 passed the House on 3/23/09 by a vote of 94 to 43. SB 270 passed the Senate on 3/6/09 by a vote of 36 to 11. It was signed into law by the Governor on 4/14/09.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0310.htm

 

HOUSE BILL 567 – Trans Fat Ban:

FAILED

This bill, sponsored by Delegate James Hubbard (D-23A, Prince George’s), would have banned the use of artificial trans fat in all Maryland restaurants. RAM supported this bill for several reasons: 1. It was a very weak bill with no fines and little enforcement (violators would have the name of their business posted on a website). 2. RAM successfully amended the bill to prohibit local jurisdictions from adopting their own trans fat regulations without the approval of the Maryland General Assembly. 3. With an effective date of October 2010, the bill would have created little hardship on our businesses because most of our industry has already transitioned to trans fat-free alternatives. Our only problem with the legislation, however, was that it exempted foods that are sold in the manufacturer’s original packaging. Retail stores were also exempted. RAM’s Government Affairs Committee took the position that, if the true goal is to protect public health, there should be no exemptions for packaged foods or retail stores. The bill’s sponsor resisted this amendment, but accepted our others.

With little support for getting the bill through both the House and Senate, HB 567 was withdrawn on 3/28/09.

 

HOUSE BILL 601/SENATE BILL 142 - Menu Labeling:

FAILED

This legislation, sponsored by Delegate Doyle Niemann (D-47, Prince George’s) and Senator David Harrington (D-47, Prince George’s), would have required chain restaurants (15 or more locations nationwide) to display nutrition information on menus. RAM strongly opposed this bill. Instead, we prefer industry-supported legislation at the federal level that establishes nationwide uniformity and gives chain restaurants options for how such nutrition information is displayed.

With little support for the proposal, HB 601 was withdrawn by the sponsor on 3/27/09.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0601.htm

 

HOUSE BILL 651, HOUSE BILL 16/SENATE BILL 660 - Shift Breaks:

FAILED

These bills were sponsored by the Department of Labor, Licensing & Regulation, Delegate Roger Manno (D-19, Montgomery) and Senator Robert Garagiola (D-15, Montgomery). The legislation would have required a mandatory 15-minute break for all employees who work more than four consecutive hours, and a 30-minute break for all employees who work more than six consecutive hours. The original bill would have exempted employers with fewer than 50 employees. RAM strongly opposed this legislation and played a key role as part of a coalition of several business groups that joined forces to defeat the bill this year. This legislation would have made it difficult for hospitality businesses to comply and increased the threat of employment-related class-action lawsuits. In an effort to squash broader business opposition, this legislation was hastily amended before the vote to exempt all business sectors except for retail, restaurants and hotels.

The House Economic Matters Committee narrowly rejected HB 651 and HB 16 on 4/2/09 by a vote of 12 to 11. (Note: 13 votes are needed for a bill to pass the House Economic Matters Committee)

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0651.htm

 

HOUSE BILL 1209 – Tax Compliance, Elimination of Sales Tax Vendor Credit:

FAILED

This legislation, sponsored by Delegate Carolyn Howard (D-24, Prince George’s), would have eliminated the sales tax vendor credit for timely filing. RAM strongly opposed this bill. The purpose of the vendor’s credit is to partially compensate businesses for performing the job of collecting and remitting sales tax for the state. This credit has already been cut in half. If the credit was eliminated altogether, it would effectively increase business expenses and provide no partial offset to the credit card fees that businesses pay on the sales tax portion of transactions.

This legislation died in committee without a vote.

For more information, visit http://mlis.state.md.us/mgaweb/billfly.aspx?hb1209

 

HOUSE BILL 1249/SENATE BILL 831 - Overtime Calculation:

FAILED

This bill, sponsored by Delegate Brian Feldman (D-15, Montgomery) and Senator Doug J.J. Peters (D-23, Prince George’s), would have changed traditional overtime policy from the traditional 40-hour work week to an 8-hour work day. It would have also made part-time workers eligible for overtime if they worked more than 8 hours in a given day. The bill exempted employers with fewer than 50 employees. RAM strongly opposed this legislation.

This legislation died in committee without a vote.

For more information, visit http://mlis.state.md.us/2009rs/billfile/hb1249.htm

 

HOUSE BILL 1306 – Mandatory Recycling for
Restaurants and Bars:

FAILED

This bill, sponsored by Delegate Jill Carter (D-41, Baltimore City), would have required all Maryland restaurants and bars to recycle glass, aluminum and plastic. RAM opposed this bill. While we support and encourage voluntary green initiatives, a mandate of this type would increase the cost of waste disposal by requiring expensive hauling contracts, especially for establishments located in rural parts of the state.

The House Environmental Matters Committee rejected HB 1306 on 3/25/09 by unanimously deciding to take no action.

For more information, visit http://mlis.state.md.us/2009rs/billfile/hb1306.htm

HOUSE BILL 1573 – Soda Fountain License Repeal:

PASSED

This legislation, sponsored by Delegate Nick Kipke (R-31, Anne Arundel), repeals a 1916 law that requires a license for businesses that operate soda fountains. The Maryland Comptroller recently directed local license authorities to resume enforcement of the old law. The majority of such businesses already have foodservice facility licenses, which makes this old soda fountain license obsolete. In the final days of session, RAM led a coalition of related industry groups as we combined resources to repeal this old law. The bill crossed its final hurdle by passing the Senate in the final hour of this year’s General Assembly session. In addition to Delegate Kipke’s work on the bill, our efforts were assisted by Delegate James King (R-33A, Anne Arundel), Delegate Jim Mathias (D-38B, Worcester, Wicomico), Senator John Astle (D-30, Anne Arundel) and Senator Kathy Klausmeier (D-8, Baltimore County).

HB 1573 passed the House on 4/9/09 by a vote of 135 to 0. HB 1573 passed the Senate on 4/13/09 by a vote of 46 to 0. If signed into law by the Governor, this legislation becomes effective on 10/1/09. Unfortunately, businesses that have already paid the license fee for this year are not entitled to a refund because the law is technically still on the books until October. However, businesses that paid multiple license fees for multiple soda fountain machines within their establishments (as opposed to one license fee per establishment) are entitled to refunds. The Comptroller’s office advises Circuit Court Clerks that, although they required that notification about the fee be sent to all licensees in March, they have no intention of enforcing it this year because of the late notification and confusion surrounding the issue. Given this situation, businesses that have not yet paid the fee this year may want to consider forgoing it.

For more information, visit http://mlis.state.md.us/2009rs/billfile/hb1573.htm

 

SENATE BILL 170 - Foodservice Facility License Fees:

FAILED

This legislation, sponsored at the request of the Department of Health and Mental Hygiene, would have allowed local health departments to increase foodservice facility license fees above the $300 statutory limit. Under current law, only the jurisdictions of Baltimore City, Anne Arundel County, Montgomery County and Prince George’s County may charge more than $300 for a foodservice facility license. This legislation would have allowed all other Maryland jurisdictions to increase their fees if they so chose. Because fees in Anne Arundel County increased 97 percent after being exempted from the statutory limit in 2008, RAM successfully amended this bill to limit fee increases to no more than 30 percent a year. Fortunately, the amendment was not needed after all.

The Senate Finance Committee rejected SB 170 on 3/3/09 by a vote of 1 to 10.

For more information, visit http://mlis.state.md.us/2009rs/billfile/sb0170.htm

 

SENATE BILL 552 – Tax Amnesty Act:

PASSED

This bill, sponsored by Senator Ed DeGrange (D-32 Anne Arundel), creates a tax amnesty program that waives penalties and half of the interest due on delinquent Maryland taxes if the delinquent taxes are paid between the declared amnesty period of September 1, 2009 and October 30, 2009. The amnesty program is for any Maryland taxpayer who failed to file or pay the following types of taxes on or before December 31, 2008: individual income tax, corporate income tax, withholding tax, sales and use tax, admissions and amusement tax. Taxpayers who took advantage of previous amnesty programs are not eligible. Corporate taxpayers with more than 500 employees are not eligible.

The Senate passed SB 552 on 4/10/09 by a vote of 44 to 2. The House passed HB 552 on 4/9/09 by a vote of 131 to 1. If signed into law by the Governor, the legislation becomes effective on 6/1/09.

For more information about the Tax Amnesty program, you should speak with your accountant. For more information about the bill, visit http://mlis.state.md.us/2009rs/billfile/sb0552.htm

 

SENATE BILL 537 – First Aid Training for Choking and CPR:

FAILED

This legislation, sponsored by Senator Bobby Zirkin (D-11, Baltimore County), would have required restaurants to have at least one staff member trained in CPR and Heimlich maneuver on site during hours of operation. RAM strongly opposed this bill because it unfairly suggested that restaurants are the only businesses in which a person may choke or need CPR. Senator Zirkin sponsored this bill at the request of a constituent who lost her fiancée during a choking incident at a restaurant.

The Senate Finance Committee unanimously rejected SB 537 on 3/17/09 by a vote of 0 to 11.

For more information, visit http://mlis.state.md.us/2009rs/billfile/sb0537.htm

 

SENATE BILL 820 – Employee Purchase of Business:

FAILED

This legislation, sponsored by Senator David Harrington (D-47, Prince George’s), would have required business owners to give their employees the right of first refusal before the business could be sold, closed or relocated. Employees would have been given 60 days to make an offer before the business owner could consider outside offers. RAM strongly opposed this bill for reasons too numerous to mention.

The Senate Finance Committee rejected SB 820 on 3/17/09 by a vote of 1 to 10.

For more information, visit http://mlis.state.md.us/2009rs/billfile/sb0820.htm

Anne Arundel County

SB 106/HB 1304 – Alcoholic Beverages Act of 2009:

PASSED

This bill, sponsored by the Anne Arundel County Senators, increases various license fees for the sale of alcoholic beverages in Anne Arundel County and establishes new classes of licenses. The bill also establishes new requirements for license applications and renewals and alters penalties for certain violations of alcoholic beverage laws. In addition, it adds Anne Arundel County to the list of jurisdictions in which a court may remand certain proceedings to the local licensing board, and allows this authority to be applied retroactively to all matters on judicial review in the Circuit Court of Anne Arundel County on or after August 1, 2008. SB 106 passed the Senate on 2/20/09 by a vote of 43 to 4, and passed the House on 4/2/09 by a vote of 136 to 0. HB 1304 passed the House on 4/10/09 by a vote of 134 to 2 and passed the Senate on 4/7/09 by a vote of 42 to 1. If signed by the Governor, the new law becomes effective July 1, 2009.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/sb0106.htm

 

SB 25 – City of Annapolis – Alcoholic Beverages – Administrative Proceedings and Fines:

PASSED

This legislation, sponsored by the Anne Arundel County Senators, adds the City of Annapolis to the list of jurisdictions in which the granting of probation before judgment to an alcoholic beverages licensee for selling or furnishing alcoholic beverages to an underage individual does not bar the Board of License Commissioners from proceeding administratively against the licensee. This bill increases the maximum fine that may be imposed in lieu of license suspension from $1,000 to $2,000. This bill passed the Senate on 2/20/09 by a vote of 47 to 0, and passed the House on 4/2/09 by a vote of 136 to 0. This bill was signed into law by the Governor on 4/14/09.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/sb0025.htm

Baltimore City

SB 232 – Baltimore City – Alcohol Awareness Program – Certified Personnel Required at Licensed Premise During Hours of Sale:

FAILED

This legislation, sponsored by Senator Della (D-46, Baltimore City), would have required in Baltimore City that the licensee or supervisor be certified by an approved alcohol awareness training program and present during hours in which alcohol is being served on the premise. This bill never received a committee vote and was withdrawn by the sponsor.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/sb0232.htm

SB 233 – Baltimore City – Alcoholic Beverages – Expiration of Licenses – Drinking Games:

FAILED

This bill, sponsored by Senator Della (D-46, Baltimore City), would have extended the time period, from 180 to 360 days, by which an alcoholic beverage licensee in Baltimore City has to reopen a closed business, resume alcoholic beverage operations, or file a hardship extension before the license expires. This legislation would have also increased the maximum duration of a hardship extension from 360 to 720 days. These extensions would have terminated after June 30, 2011. In addition, this bill also prohibited certain drinking games in licensed establishments in Baltimore City and would have imposed penalties for violations. This bill was withdrawn.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/sb0233.htm

SB 436 – Baltimore City – Seating Capacity for Restaurants:

FAILED

This bill, sponsored by Senator Della (D-46, Baltimore City), would have increased the seating capacity to over 150 for a restaurant that is licensed to serve alcoholic beverages and has a minimum $700,000 capital investment in specified areas of Baltimore City. This bill was withdrawn by the sponsor.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/sb0436.htm

SB 438 – Baltimore City - Alcoholic Beverages – Transportation to Licensed Establishment:

FAILED

This bill, sponsored by Senator Della (D-46, Baltimore City), would have prohibited a holder of a liquor license in Baltimore City from directly arranging or contracting for transportation for individuals to the licensed establishment, and specifying penalties. This bill was withdrawn.

Fore more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/sb0438.htm

Baltimore County

SB – 543 – Baltimore County – Towson Commercial Revitalization District – Alcoholic Beverages – Transfer and Conversion of Licenses:

PASSED

This bill, sponsored by Senator Brochin (D-42, Baltimore County) and Senator Stone (D-6, Baltimore County), alters current provision of law relating to the transfer of Class B or D (B, W and L) alcoholic beverage licenses in Baltimore County for use in the Towson Commercial Revitalization District (TCRD). The bill establishes the number of licenses that may be transferred from a specified election district and converted into a Class B (B, W, L) (TCRD) license. The bill alters requirements relating to average daily receipts from the sale of food and the minimum capital investment for the license. Additionally, this bill repeals the current termination provision relating to the period during which alcoholic beverage licenses may be transferred and converted into a Class B (B, W, L) (TCRD) license. SB 543 passed the Senate on 3/17/09 by a vote of 46 to 0 and passed the House on 4/3/09 by a vote of 132 to 0.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/sb0543.htm

Calvert County

HB 217/SB 518 – Calvert County – Alcoholic Beverages:

PASSED

This bill, sponsored by Senator Miller (D-27, Calvert and Prince George’s County) and Senator Dyson (D-29, Calvert, Charles, & St. Mary’s), increases the license fees for the sale of alcoholic beverages in Calvert County, and creates a special beer, wine, and spirits tasting (BWST) license; specifying conditions under which a protest to a renewal of an alcoholic beverages license in the county may occur. This bill adds additional requirements in order to protest a renewal of a license and extends the time period in which a renewal application can be submitted, without being subjected to a late fine. The bill also alters penalties for licensees or employees of the licensee who provide alcohol to an underage individual or to a person who is visibly under the influence of any alcoholic beverage. HB 217 passed the House on 4/8/09 by a vote of 133 to 1 and passed the Senate on 4/4/09 by a vote of 47 to 0. SB 518 passed the Senate on 3/28/09 by a vote of 46 to 0 and passed the House on 4/9/09 by a vote of 133 to 3. If signed by the Governor, this new law will become effective July 1, 2009.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0217.htm

HB 591/SB 407 – Calvert County – Winery Special Event Permit – Farmers Markets:

FAILED

This bill, sponsored by Delegate Kullen (D-27B, Calvert), Delegate O’Donnell (R-29C, Calvert, & St. Mary’s) Delegate Proctor (D- 27A, Calvert & Prince George’s), and Delegate Vallario (D-27A, Calvert & Prince George’s), increases the number of winery special events permit that may be issued to a Class 4 limited winery in Calvert County. The bill authorizes the issuance of 12 winery special event permits during the calendar year at all farmers’ markets in Calvert County, including Calvert County Farmers’ Market and the North Beach Friday Night Farmers’ Market. HB 591 passed the House but never received a Senate committee vote. SB 407 did not receive a committee vote.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0591.htm

Caroline County

HB 46/ SB 37 – Caroline County – Alcoholic Beverages – Multiple Licenses:

PASSED

This bill, sponsored by Senators Colburn (D-37, Caroline, Dorchester, Talbot, and Wicomico) and Pipkin (D-36, Caroline, Cecil, Kent & Queen Anne’s), allows for a multiple event license based on the number of events held per year. Under this new law the fee is $500 for up to 40 events per calendar year, a decrease of $100. SB 37 passed the Senate on 2/20/09 by a vote of 47 to 0. SB 37 also passed the House by a vote of 132 to 1. HB 46 passed the House on 3/13/09 by a vote of 132 to 0 and the Senate on 4/4/09 by a vote of 47 to 0. If signed by the Governor, this law will become effective on June 1, 2009.

Fore more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0046.htm

 

Charles County

HB 372- Charles County – Alcoholic Beverages Violations – Penalties:

PASSED

This bill, sponsored by the Charles County Delegation, increases the maximum fine from $1,000 to $2,500 for alcoholic beverages violations in Charles County; and providing that the Charles County Board of License Commissioners may impose both a fine and a license suspension for an alcoholic beverages violation. For the first offense, a license will be suspended for not more than 3 days or impose a fine not to exceed $750 or both. If an employee of an alcoholic beverages license serves a person under 21 years of age, the Board of Commissioners may impose a fine on the employee not to exceed $500. HB 372 passed the House on 3/13/09 by a vote of 132 to 0 and passed the Senate on 4/8/09 by a vote o 47 to 0. If signed by the Governor, this bill will become effective October 1, 2009.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0372.htm

HB 442 – Charles County – Alcoholic Beverages Licenses – Administrative Proceedings:

PASSED

This bill, sponsored by the Charles County Delegation, authorizes Charles County to proceed administratively against an alcoholic beverage licensee who is granted probation before judgment for selling or furnishing alcoholic beverages to an underage individual. HB 442 passed the House on 3/13/09 by a vote of 132 to 0 and passed the Senate on 4/8/09 by a vote of 47 to 0.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0442.htm

 

Dorchester County

HB 425/SB 333 – Dorchester County – Alcoholic Beverages Act of 2009:

PASSED

This legislation, sponsored by Delegate Eckardt (R-37B, Caroline, Dorchester, Talbot, & Wicomico) Delegate Haddaway (R-37B, Caroline, Dorchester, Talbot, & Wicomico), Delegate Cane (D-37A, Dorchester, & Wicomico) authorizes the Dorchester County Board of License Commissioners to issue a Class B caterer's license and a beer and wine sampling or tasting (BWST) license; exempting applications for restaurant licenses in Cambridge and Secretary from a specified site restriction. This bill also modifies the areas in the county in which premises may not be issued an alcoholic beverage licenses. This bill, creates additional exemptions from the geographic restrictions for certain premises, and authorizes the alcoholic beverages inspector in Dorchester County to issue summons for witnesses to appear at inquires and hearings conducted by the board. HB 425 passed the House on 3/13/09 by a vote of 132 to 0 and passed the Senate on 4/2/09 by a vote of 47 to 0. SB 33 passed the Senate on 3/3/09 by a vote of 47 to 0 and passed the House on 4/3/09 by a vote of 133 to 0. SB 333 was signed by the Governor on 4/14/09.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0425.htm

HB 436/SB 332 – Dorchester County – Alcoholic Beverages Winery License:

FAILED

This bill, sponsored by the Dorchester County Delegation, would have authorized the Dorchester County Board of License Commissioners to issue a Class W winery license to specified holders of a Class 4 manufacturer's license; specifying the privileges conferred by the Class W winery license, including the ability to sell wine and other products for consumption on or off the premises and to maintain furnishings to enable patrons to consume wine and food; providing a license fee; etc. HB 436 received an unfavorable report by the House Economic Matters committee. A hearing was held on 2/11/09 before the Senate Education Health and Environmental Affairs Committee for SB 332. It did not receive a vote by the committee. All of the Class W winery license bills that were introduced failed, which include Carroll, Calvert, Dorchester, Frederick and Harford.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0436.htm

 

Garrett County

HB 334 – Garrett County Wine and Beer Tasting License – Off-Site Retail Delivery Procedures – Fees:

PASSED

This legislation, sponsored by Delegate Beitzel (D-1A, Garrett & Allegany), requires the Garrett County Board of License Commissioners to charge a $100 issuing fee for a wine and beer tasting license, a $10 fee for a duplicate license, and a $200 fee, plus publication and notice cost, to transfer a license. The bill authorizes an alcoholic beverages licensee or an employee of the licensee to make an off-site retail delivery of alcoholic beverages if certain procedures are followed and the licensee pays an annual $150 fee for the delivery option and a $150 issuing fee. HB 334 passed the House on 3/13/09 by a vote of 132-0 and passed the Senate on 4/6/09 by a vote of 46 to 1. This bill was signed by the Governor on 4/14/09.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0334.htm

 

St. Mary’s County

HB 1271 – St. Mary’s County – Increasing the Maximum Fine for Alcohol Violations:

PASSED

This bill, sponsored by the St. Mary’s County Delegation, would increase the maximum fine for violation of alcoholic beverage licensing laws in St. Mary’s County from $500 to $1,000. HB 1271 passed the House on 3/13/09 by a vote of 132-0 and passed the Senate on 4/8/09 by a vote of 47 to 0. If signed by the Governor, this bill will take effect July 1, 2009.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb1271.htm

 

Prince George’s County

SB 346 – Prince George’s County – Alcoholic Beverages – Appeal of Order to Close a Place of Business:

FAILED

This bill, sponsored by Senator Exum (D-24, Prince George’s), specifies that, in an appeal from a decision from the Board of License Commissioners in Prince George’s County, the court may not stay an order of the board to close a licensed place of business. This bill passed the Senate on 4/2/09 by a vote of 47 to 0, but never received a vote by the House.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/sb0346.htm

HB 522 – Prince George’s County – Alcoholic Beverages – Class A/Class 4 Light Wine License:

FAILED

This legislation, sponsored by Delegate Barnes (D-21, Anne Arundel & Prince George’s), would have exempted a winery in Prince George’s County that applies for a Class 4 license from any quotas established by the Prince George’s County Board of License Commissioners as to the number of licenses in the election district where the winery is located. This bill was withdrawn.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0522.htm

 

Talbot County

HB 105/SB 334 – Talbot County – Alcoholic Beverages – Limited Wineries:

PASSED

This bill, sponsored by Delegate Haddaway (R-37B, Caroline, Dorchester, Talbot, & Wicomico) and Delegate Eckardt (R-37B, Caroline, Dorchester, Talbot, & Wicomico), allows owners of a class 4 manufacturer’s (limited winery) license in Talbot County to produce wine and pomace brandy at each warehouse for which the holder has been issued an individual storage permit; and prohibiting a holder from serving or selling wine and pomace brandy to the public at a warehouse. HB 105 passed the House on 3/13/09 by a vote of 132 to 0 and passed the Senate by a vote of 47 to 0. SB 334 passed the Senate on 3/29/09 by a vote of 45 to 0, and passed the House on 4/8/09 by a vote of 135 to 0. If signed by the Governor, this law will become effective on June 1, 2009.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0105.htm

 

Washington County

HB 351 – Washington County – Alcoholic Beverages – Winery License:

FAILED

This bill, sponsored by the Washington County Delegation, would have authorized the Washington County Board of License Commissioners to issue a Class W winery license to certain holders of a Class 4 manufacturer’s license. This bill also specified the privileges conferred by the Class 4 winery license and establishes a maximum annual license fee of $150. This bill never received a committee vote.

For more information about this bill, visit http://mlis.state.md.us/2009rs/billfile/hb0351.htm

The 2008 Maryland General Assembly session adjourned on April 7th.  The following information is a summary of some of the issues RAM tracked and lobbied on behalf of our industry.  Thanks to all RAM members who contributed to our success this year by contacting legislators about important industry issues.  Several narrow victories this year would not have been possible without the help of RAM members.   If you have questions about these or other issues, call Melvin in the RAM office at 800-874-1313. To get more detailed information about this legislation, visit the Maryland General Assembly website at http://mlis.state.md.us.

 

HB 40/SB 344 – Flexible Leave Act:

PASSED

This legislation, sponsored by Delegate Ann Marie Doory (D-43 Baltimore City) and Senator Rob Garagiola (D-15 Montgomery), requires employers who offer paid sick leave to allow their employees to use such leave to care for a sick parent, spouse or child.  RAM strongly opposed this bill because it would have a greater impact on small businesses with fewer employees, as employers would likely resort to hiring additional temporary staff or force other employees to work overtime without prior notice.  Before final passage, the bill was amended to exempt employers with fewer than 15 employees.

HB 40 passed the House on 3/20/08 by a vote of 90 to 46.   HB 40 passed the Senate on 3/29/08 by a vote of 31 to 16.  If signed by the Governor, the new law becomes effective on October 1, 2008.

 

 

HB 81 – Task Force to Study the Regulation of Artificial Trans Fat:

FAILED

This bill, sponsored by Delegate James Hubbard (D-23A Prince George’s), would have created a task force to study trans fat and make suggestions about how to best phase out the use of trans fat in foodservice establishments.  The restaurant industry as well as other food-related and retail industries would have been represented on the task force.  RAM supported this legislation because it was much better than an outright ban.  Last year, Delegate Hubbard tried to pass a statewide trans fat ban.  RAM opposed that legislation, which failed. 

HB 81 passed the House on 3/14/08 by a vote of 120 to 13.  HB 81 failed in the Senate Finance Committee on 4/1/08 by a vote of 5 to 6.

 

 

HB 613/SB 998 – Maryland Education Fund (unredeemed Gift

Certificates/Cards):

FAILED

This bill, sponsored by Delegate Joseline Peña-Melnyk (D-21 Prince George’s) and Senator Catherine Pugh (D-40 Baltimore City), would have required that unredeemed gift certificate/gift card balances be considered “abandoned property” after expiration and remitted to the State Comptroller for use in public education funding. This forfeiture of unredeemed revenue to State government is commonly known as “escheatment.”  Gift certificates/cards without expiration dates were not subject to the provisions of this legislation.  RAM strongly opposed this bill because many smaller restaurants use the revenue from unredeemed gift certificates/cards to underwrite the costs of their certificate/card programs.  Moreover, Federal and Maryland tax code requires that unredeemed gift certificate/card revenue be reported and taxed as income after two years.   Because most businesses continue to accept expired certificates/cards, it was unclear if businesses would be reimbursed by the State for the value of gift certificates/cards that are redeemed after such abandoned property has been remitted to the State.  (Note:  Effective July 1, 2006, all gift certificates/cards sold in Maryland may not expire sooner than four years after the date of sale).

 

HB 613 never received a vote in the House.  An amended version of SB 998 passed the Senate Finance Committee on 3/26/08 by a vote of 6 to 5.  The bill was also referred to the Senate Education, Health and Environmental Affairs Committee, which voted unanimously (on 3/27/08) to reject the Senate Finance Committee amendments and support the original bill.  Unable to resolve differences, the Senate Finance Committee effectively killed the bill by reporting “No Recommendation.”

 

HB 627/SB 328 – Unemployment Insurance Eligibility –

Part-Time Work:

FAILED

This legislation, sponsored by Delegate Herman Taylor (D-14 Montgomery) and Senator Delores Kelley (D-10 Baltimore County), would have allowed laid off part-time employees to qualify for unemployment benefits while they searched for new part-time work.  Currently, such employees are eligible for benefits only if they are seeking full-time work.  RAM strongly opposed this bill because a recent survey of our members indicated that 85 percent oppose unemployment benefits for those seeking part-time work.  Moreover, broadening the eligibility requirements in this manner would have increased the number of people applying for benefits, accelerated the depletion of the trust fund (which could potentially increase rates for all employers), negatively affected employer experience ratings and increased the amount of time that employers spend contesting bogus benefit claims.  After passing the Senate, this legislation seemed destined to become law.  However, thanks to RAM members who contacted their lawmakers, this bill failed in the House on the last day of Session.

 

 SB 328 passed the Senate on 3/18/08 by a vote of 25 to 22.  SB 328 failed in the House Economic Matters Committee on 4/7/08 by a vote of 10 to 10.

HB 654 – Labor and Employment – Shift Breaks :

FAILED

This bill, sponsored by Delegate Roger Manno (D-19 Montgomery), would have required that employers with 50 or more employees provide a 30-minute shift break to employees who work more than five consecutive hours.  RAM strongly opposed this legislation.  While smaller employers were exempted in this bill, this legislation would have made compliance difficult for many larger restaurants, chain restaurants and caterers.  On busy nights when dining rooms are full, it would be difficult for many restaurants to ensure adequate service to customers if forced to comply with such a mandate.  Moreover, most restaurant servers arrive at 4pm to work through dinner service.  Providing servers with a break after five hours would put most shift breaks in the middle of dinner service, which is the busiest time of the night. 

 

 HB 654 passed the House Economic Matters Committee on 3/28/08 by a vote of 12 to 10.  Because of strong lobbying efforts by RAM and our members, this legislation was never scheduled for a House floor vote, which effectively killed the bill.

 

 

HB 872/SB 852 – Public-Private Health Care Programs:

PASSED

This legislation, sponsored by Delegate Shane Pendergrass (D-13 Howard) and Senator Edward Kasemeyer (D-12 Howard), allows local public-private partnerships to provide basic health care services to the uninsured.  RAM expressed several concerns about this legislation.  Our primary concern was that such a public-private health care program would siphon employees away from employer-sponsored plans.  Under Maryland’s current small group market program, a health carrier may deny group coverage to an employer if less than 75 percent of the employer’s eligible employees elect to participate in the employer’s group plan (excluding those employees already covered under a spouse’s plan or another employer’s plan).  If the public-private health care programs certified through this legislation siphon small group participants from employer plans, many small businesses may find it difficult to maintain the 75 percent participation rate that is required to keep their health carriers.  Moreover, this could reduce the overall number of employees participating in Maryland’s small group market, which could lead to increased costs.  Legislators agreed to amend this legislation to address our concerns.  While not perfect, the bill now includes language that restricts the eligibility of applicants who voluntarily terminate their employer-based plans.  Such public-private partnerships must also establish procedures to determine if the program has encouraged employees of small employers to drop insurance coverage.

 

 SB 852 passed the Senate on 3/21/08 by a vote of 47 to 0.  SB 852 passed the House on 3/27/08 by a vote of 138 to 0.  If signed by the Governor, the new law becomes effective on June 1, 2008.

 

HB 904, HB 1310/SB 562, SB 232 – Alcohol Tax Increase:

FAILED

All of these bills, introduced by Delegate Ana Sol Gutierrez (D-18 Montgomery), Delegate William Bronrott (D-16 Montgomery), Senator Richard Madaleno (D-18 Montgomery) and Senator Jennie Forehand (D-17 Montgomery) respectively, would have substantially increased alcohol taxes.  RAM strongly opposed all of these bills because increasing alcohol taxes on top of the recent sales tax increase would have amounted to an unfair double hit on the restaurant and bar industry.

 

These bills never received Committee votes.

 

HB 1137/SB 599 - Force-Feeding Birds – Foie Gras Ban:

FAILED

This legislation, sponsored by Delegate Tanya Shewell (R-5A Carroll) and Senator Joan Carter Conway (D-43 Baltimore City), would have banned the production, transport and sale of foie gras (fatty duck or goose liver) statewide. As a result of strong lobbying efforts by RAM and member chefs, this bill was withdrawn by the sponsors.  The withdrawal of this legislation was a critical win for restaurants because banning foie gras would have set a precedent for animal rights activists to push for banning other menu items for ethical reasons.

This bill was withdrawn.

 

 

HB 1235 – Payment of Overtime – Calculation:

FAILED

This bill, sponsored by Delegate Brian Feldman (D-15 Montgomery), would have required overtime to be calculated based on an 8-hour workday, if such a calculation exceeded wages paid using the traditional 40-hour workweek computation method.  RAM strongly opposed this bill because it did not take into consideration unique scenarios in our industry that may require employees to work additional hours on some days and fewer hours on other days, provided that no more than 40 total hours are worked within a week.  In the restaurant business, a server may work five hours on a slow weekday, but work 10 hours on a busy weekend day.  Moreover, Federal overtime rules have long been based on a 40-hour workweek.  To change the rules in Maryland would have confused both employers and employees.

This bill never received a Committee vote.

 

 

HB 1580 – Unemployment Insurance – Maximum Benefit Increase:

FAILED

This legislation, sponsored by Delegate Hattie Harrison (D-45 Baltimore City), would have increased the maximum unemployment insurance weekly benefit to $500 by the year 2010.  The current maximum weekly benefit is $380.  RAM opposed this legislation because the purpose of unemployment insurance is to provide enough of a benefit to cover the cost of basic needs, but not to provide so much of a benefit as to discourage recipients from finding new jobs as soon as possible.  Moreover, with a weakening economy, it was the wrong time to pass legislation that could accelerate the depletion of the unemployment insurance trust fund. 

 

This bill never received a Committee vote.

 

***Click Here for a list votes by the Maryland State Senate on key industry issues***

***Click Here for a list votes by the Maryland House of Delegates on key industry issues***