Bills of Interest
Monitor our legislative wrap-ups, which we email each week during the Maryland General Assembly’s legislative session starting in January. Contact us to get involved in policy advocacy this year.
LIFE SCIENCES
HB 424 (SB 357) →
Prescription Drug Affordability Board – Authority for Upper Payment Limits (Lowering Prescription Drug Costs for All Marylanders Now Act)
Requiring the Prescription Drug Affordability Board, under certain circumstances, to establish a process for setting upper payment limits for all purchases and payor reimbursements of prescription drug products in the State that the Board determines have led or will lead to affordability challenges; authorizing the Board to reconsider an upper payment limit for a drug that becomes a current shortage; altering requirements related to the setting of upper payment limits by the Board; etc.
HB 321 (SB 303) →
Pharmacy Benefits Managers – Definition of Purchaser and Alteration of Application of Law
Altering the definition of “purchaser” for the purpose of certain provisions of State insurance law governing pharmacy benefits managers to exclude certain nonprofit health maintenance organizations; and repealing certain provisions that restrict applicability of certain provisions of law to pharmacy benefits managers that provide pharmacy benefits management services on behalf of a carrier.
HB 414 →
Health and Taxation – Digital Social Media Services and the Mental Health Care Fund for Children and Youth
Establishing the Mental Health Care Fund for Children and Youth to support improved access to mental health care services to children and youth in the State; imposing a tax on certain annual revenues derived from certain digital social media services in the State; providing for the calculation and collection of the tax; requiring the Comptroller to distribute revenue from the tax in a certain manner; etc.
HB 820 →
Health Insurance – Utilization Review – Use of Artificial Intelligence
Requiring that certain carriers, pharmacy benefits managers, and private review agents ensure that artificial intelligence, algorithm, or other software tools are used in a certain manner when used for conducting utilization review.
SB 535 →
Research Facilities and Testing Facilities That Use Animals – Licensing and Regulations
Requiring each research facility and testing facility in the State that uses animals in research, education, or testing to be licensed by the Department of Agriculture; applying certain provisions of law regarding the adoption of dogs and cats used for scientific research purposes to testing facilities; establishing a State Inspector of Animal Welfare in the Department to inspect research facilities and testing facilities; requiring a research facility and a testing facility to notify the State Inspector of certain violations; etc.
SB 536 →
Research Facilities and Testing Facilities That Use Animals – Regulation
Establishing requirements for the use and treatment of dogs or cats by a research facility or testing facility; prohibiting a research facility and testing facility from using certain dogs and cats for research or testing purposes and performing devocalization procedures on dogs or cats; prohibiting a research facility and testing facility from using traditional animal test methods under certain circumstances; etc.
SB 537 →
Research Facilities and Testing Facilities That Use Animals – Adoption and Reporting Requirements
Applying certain provisions of law regarding the adoption of dogs and cats used for scientific research purposes to testing facilities; requiring certain research facilities and testing facilities to submit to the Department of Agriculture certain information regarding dogs and cats on or before January 31 each year; and requiring a school or an institution of higher education that uses animals for certain purposes to submit a report on the results of certain inspections to the General Assembly on or before December 31 each year.
TECHNOLOGY
HB0005 →
Criminal Law – Child Pornography – Artificial Intelligence Software
Defining “computer-generated image” to include images created through the use of artificial intelligence software as the term pertains to provisions of law related to child pornography.
HB 82 (SB 241) →
Cyber Maryland Program – Revisions
Transferring the Cyber Maryland Program from the Maryland Technology Development Corporation to the Maryland Department of Labor; altering the duties of the Program; altering the purposes for which the Cyber Maryland Fund may be used; repealing certain funding requirements related to the Program; and altering the membership of the Cyber Maryland Board.
HB 107 (SB 49) →
Consumer Protection – Automatic Renewals
Requiring a person who makes an automatic renewal offer to consumers to allow a consumer to cancel the automatic renewal in a certain manner; requiring automatic renewal offers to be displayed in a certain manner and contain certain information; establishing that compliance with certain regulations shall be considered to be compliance with the Act; establishing that a violation of the Act is an unfair, abusive, or deceptive trade practice; etc.
HB 208 →
Consumer Protection – False Advertising – Digital Goods
Prohibiting a person from advertising or offering for sale a digital good using certain terminology or alongside an option for a time-limited rental unless certain acknowledgments are received from the purchaser and certain statements are provided by the seller; and establishing that a person who violates the Act is guilty of a misdemeanor and is subject to a fine not to exceed $1,000 or imprisonment of up to 1 year or both.
HB 221 (SB 242) →
Department of Information Technology – Maryland Digital Service – Establishment
Establishing the Maryland Digital Service within the Department of Information Technology to support improved service delivery to Maryland residents and agency staff through user-centered design, software development, and product management best practices; requiring the Service to assist units of State government to prioritize the development and procurement of user-friendly, accessible, and multilingual digital platforms to ensure that all Maryland residents can easily access and use government services and information; etc.
HB 546 →
Digital Advertising Gross Revenues Tax – Assessments – Appeals and Corrections
Establishing a certain appeal process for persons who are subject to the digital advertising gross revenues tax and receive a notice of assessment from the Comptroller; authorizing the Comptroller or the Comptroller’s designee to issue an order to correct an erroneous assessment of the digital advertising gross revenues tax, subject to certain conditions; and applying the Act to assessments of the digital advertising gross revenues tax made after December 31, 2025.
HB 589 →
Artificial Intelligence – Causing Injury or Death – Civil and Criminal Liability
Establishing that a person who intentionally, knowingly, or negligently designs or creates artificial intelligence software able to cause physical injury or death is strictly liable for damages and subject to a civil penalty if the software is used to cause personal injury or death; and prohibiting a person from intentionally, knowingly, or negligently designing or creating artificial intelligence software able to cause injury or death.
SB 487 →
Procurement – Major Information Technology Development Projects
Requiring the Secretary of Information Technology to conduct a certain risk assessment of certain major information technology development projects under certain circumstances; authorizing the Secretary to recommend an increase in a certain limitation of liability amount under certain circumstances; requiring the Chief Procurement Officer to review a certain recommendation; authorizing the Chief Procurement Officer to approve a certain change to a certain limitation of liability; etc.
HB 697 →
Health Insurance – Artificial Intelligence, Adverse Decisions, and Grievances – Reporting Requirements
Requiring a health insurance carrier to submit quarterly reports to the Maryland Insurance Commissioner on certain information related to the carrier’s use of artificial intelligence or automated decision-making systems; and altering the information related to adverse decisions and grievances carriers are required to report to the Commissioner.
HB 817 (SB 609) →
Residential Leases – Use of Algorithmic Device by Landlord to Determine Rent – Prohibition
Prohibiting a landlord from using certain algorithmic devices to determine the amount of rent to charge a residential tenant; making a violation of the Act an unfair, abusive, or deceptive trade practice under the Maryland Consumer Protection Act; and applying the Act prospectively.
HB 823 →
Generative Artificial Intelligence – Training Data Transparency
Requiring a developer of a generative artificial intelligence system, on or before January 1, 2026, and before the developer releases or substantially modifies a certain generative artificial intelligence system, to publish on the developer’s website documentation detailing the data used to train the generative artificial intelligence system.
HB 900 →
Electricity – Data Centers – Rate Schedule and Requirements
Requiring each electric company in the State to submit to the Public Service Commission for approval a specific rate schedule for certain data center customers with certain required provisions, including minimum durations, financial responsibilities, and fees.
HB 966 (SB 655) →
Courts – Artificial Intelligence Evidence Clinic Pilot Program – Establishment
Establishing an Artificial Intelligence Evidence Clinic Pilot Program within the Administrative Office of the Courts to provide expertise in artificial intelligence to the circuit courts and the District Court in the form of expert testimony on the authenticity of electronic evidence that a court determines may have been created or altered using artificial intelligence; and authorizing the Governor, for fiscal years 2027 and 2028, to include an appropriation of $250,000 in the annual budget bill for the Program.
SB 605 (HB 546) →
Digital Advertising Gross Revenues Tax – Assessments – Appeals and Corrections
Establishing a certain appeal process for persons who are subject to the digital advertising gross revenues tax and receive a notice of assessment from the Comptroller; authorizing the Comptroller or the Comptroller’s designee to issue an order to correct an erroneous assessment of the digital advertising gross revenues tax, subject to certain conditions; and applying the Act to assessments of the digital advertising gross revenues tax made after December 31, 2025.
OTHER BILLS OF INTEREST
HB 35 (SB 91) →
Economic Development – Income Tax Benefit Transfer Program – Establishment
Establishing the Income Tax Benefit Transfer Program within the Department of Commerce to allow eligible technology companies in the State with unused amounts of net operating loss subtraction 20 West Street, Annapolis, MD 21401 | info@smwpa.com | 410.244.7000 | smwpa.com Schwartz, Metz, Wise & Kauffman, P.A. 4 modifications or income tax credits to transfer those tax benefits for use by other business taxpayers in the State to assist in funding expenses incurred by the eligible technology companies in connection with operations in the State; requiring the Department, in consultation with the Comptroller, to administer the Program; etc.
HB 49 (SB 256) →
Environment – Building Energy Performance Standards – Compliance and Reporting
Altering an annual compliance fee paid by certain owners of covered buildings under certain circumstances to include the energy use attributable to the building’s failure to meet certain energy targets; requiring certain regulations to include a certain annual reporting fee to cover certain costs; and requiring the Department of the Environment to deposit alternative compliance fees into the Maryland Strategic Energy Investment Fund.
HB 168 →
Manufacturing Business Personal Property Tax – Exemption
Exempting all personal property in the possession of a person engaged in a manufacturing business that is a small- or medium-sized enterprise from the personal property tax.
HB 212 →
Maryland Building Performance Standards – Fossil Fuel Use and Electric-Ready Standards
Requiring the Maryland Department of Labor to adopt, on or before January 1, 2026, and as part of the Maryland Building Performance Standards, a requirement that new buildings meet all energy demands of the building without the use of fossil fuels and an electric-ready standard for certain buildings.
HB 277 (SB 96) →
Environment – Water Bottle Filling Stations – Requirement
Requiring a water bottle filling station or a combined water bottle filling station and drinking fountain to be installed in certain new construction or as part of certain renovations beginning October 1, 2025; and requiring the Maryland Department of Labor to adopt regulations to carry out the provisions of the Act.
HB 270 (SB 116) →
Data Center Impact Analysis and Report
Requiring the Department of the Environment, the Maryland Energy Administration, and the University of Maryland School of Business, in coordination with the Department of Legislative Services, to conduct an analysis of the likely environmental, energy, and economic impacts of data center development in the State; and requiring the Department of Legislative Services to coordinate preparation of the final report to be submitted to the Governor and the General Assembly by September 1, 2026.
HB 352 (SB 321) →
Budget Reconciliation and Financing Act of 2025
Establishing or altering certain administrative penalties; altering or repealing certain required appropriations; authorizing the use of certain funds for certain purposes; establishing certain funds; authorizing, requiring, or altering the distribution of certain revenue; altering the rates and rate brackets under the State income tax on certain income of individuals; requiring certain groups of corporations to file a combined income tax return reflecting the aggregate income tax liability of all members of the group; etc.
HB 498 (SB 427) →
Economic Development – Delivering Economic Competitiveness and Advancing Development Efforts (DECADE) Act
Requiring the Department of Commerce to evaluate the potential employment and economic growth of the State’s industry sectors and establish a certain list of industry sectors and activities to be considered for additional support; repealing the Maryland Economic Development Commission and Commerce Subcabinet; altering the designation, administration, and purposes of and eligibility for certain economic development programs; altering eligibility for and the calculation of certain economic development incentives; etc.
HB 500 (SB 426) →
Procurement Reform Act of 2025
Authorizing the Secretary of General Services to delegate certain powers and duties to the Chief Procurement Officer; altering the authority of the Department of General Services to engage in or control procurement of certain equipment and services; altering the authority of the Department of Transportation and the Maryland Transportation Authority to engage in procurement for certain supplies and services for transportation related activities; etc.
HB 505 (SB 434) →
Empowering New Energy Resources and Green Initiatives Toward a Zero-Emission (ENERGIZE) Maryland Act
Renaming the “renewable energy portfolio standard” to be the “clean energy portfolio standard”; altering the minimum required percentage of energy that must be derived from clean energy sources in certain years under the clean energy portfolio standard; altering the contents of and approval criteria for an application for an offshore wind project; establishing a process for the Public Service Commission to review and approve an application for a proposed nuclear energy generation project; etc.
HB 554 →
Unemployment Insurance Modernization Act of 2025
Repealing and establishing the methodology used to calculate the weekly benefit amount; altering the taxable wage base used to determine employer contributions to the Unemployment Insurance Trust Fund, the dependent allowance, and the amount of earned wages subtracted from a weekly benefit amount; requiring the Maryland Department of Labor to determine and make available online the State annual average wage applicable to the rate of contribution; etc.
HB 632 →
Labor and Employment – Workplace Fraud – Application (Maryland Workplace Fraud Act of 2025)
Applying to all private sector employers, rather than only employers in the construction and landscape services industries, provisions of law that prohibit an employer from failing to properly classify an individual who performs work for remuneration paid by the employer.
HB 648 (SB 377) →
Economic Development – Business Resource Initiative for Developmental Growth and Empowerment (BRIDGE) Program – Establishment
Establishing the Business Resource Initiative for Developmental Growth and Empowerment Program and Fund in the Department of Commerce to provide grants to certain business entities to establish certain business incubators; prohibiting the grants awarded under the Program from being used to support more than 25% of the operating expenses of a qualified incubator, except in the first year of a grant; requiring the Department to give priority for grants to incubators managed by socially or economically disadvantaged persons; etc.
SB 302 →
Maryland Small Business Innovation Research and Technology Transfer Incentive Program – Alterations
Repealing certain provisions of law specifying certain limitations on awards or investments provided to certain small businesses under the Maryland Small Business Innovation Research and Technology Transfer Incentive Program.
SB 479 →
Building Energy Performance Standards – Public Safety, Emergency, and Public Utility Buildings – Exclusion
Altering the definition of “covered building” for purposes of certain building energy performance standards to exclude certain public safety, emergency, and public utility buildings.
SB 488 (HB 168) →
Manufacturing Business Personal Property Tax – Exemption
Exempting all personal property, including manufacturing inventory, in the possession of a person engaged in a manufacturing business that is a small- or medium-sized enterprise from the personal property tax, including any special taxing district property tax.
SB 752 (HB 554) →
Unemployment Insurance Modernization Act of 2025
Repealing and establishing the methodology used to calculate the weekly benefit amount; altering the taxable wage base used to determine employer contributions to the Unemployment Insurance Trust Fund, the dependent allowance, and the amount of earned wages subtracted from a weekly benefit amount; requiring the Maryland Department of Labor to determine and make available online the State annual average wage applicable to the rate of contribution; etc.