STATE OF MARYLAND€¦ · the tax credit under certain circumstances; providing for the application...

LAWS

OF THE

STATE OF MARYLAND

ENACTED

At the Session of the General Assembly Begun and Held in the City of Annapolis on the Fourteenth Day of January 2009

and Ending on the Thirteenth Day of April 2009

______

VOLUME III ______

The Department of Legislative Services General Assembly of Maryland

prepared this document.

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Chapter 362 Martin O’Malley, Governor 1795

Chapter 362

(Senate Bill 87) AN ACT concerning

Property Tax – Homestead Tax Credit – Eligibility FOR the purpose of altering the deadline for filing certain applications for the

homestead property tax credit with the State Department of Assessments and Taxation under certain circumstances; authorizing the Department to reinstate the tax credit under certain circumstances; providing for the application of this Act; and generally relating to eligibility and application requirements for the homestead property tax credit program.

BY repealing and reenacting, with amendments, Article – Tax – Property

Section 9–105(d)(5) and (6) Annotated Code of Maryland (2007 Replacement Volume and 2008 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article – Tax – Property 9–105. (d) (5) (i) If the dwelling was transferred for consideration in a deed dated on or after January 1 but before the beginning of the next taxable year and the

deed [has not been] WAS recorded with the clerk of the circuit court or the Department [prior to the beginning of the next taxable year,] ON OR AFTER JULY 1 BUT BEFORE SEPTEMBER 1 OF THE NEXT TAXABLE YEAR, the new owner may submit a written application to the Department [within 60 days after the date of the deed] ON OR BEFORE SEPTEMBER 1 requesting that the date of the deed be accepted by the Department as the date of transfer under paragraph (1) of this subsection. (ii) 1. The applicant shall submit with the written application a copy of the executed deed evidencing the date of the transfer. 2. If the applicant fails to submit a copy of the executed deed as required under subsubparagraph 1 of this subparagraph, the Department shall deny the application.

1796 Laws of Maryland - 2009 Session Chapter 362

(iii) The date of the transfer under this paragraph is the effective date of the deed as described under § 3–201 of the Real Property Article. (6) (i) To qualify for the credit under this section, a homeowner shall submit an application for the credit to the Department as provided in this paragraph. (ii) The application shall: 1. be made on the form that the Department provides;

2. provide the information required by the form; [and] 3. include a statement by the homeowner under oath

that the facts stated in the application are true, correct, and complete; AND 4. BE FILED ON OR BEFORE JULY 1 OF THE FIRST TAXABLE YEAR FOR WHICH THE PROPERTY TAX CREDIT UNDER THIS SECTION IS

TO BE ALLOWED.

(iii) [The] FOR A DWELLING THAT WAS LAST TRANSFERRED FOR CONSIDERATION TO NEW OWNERSHIP ON OR BEFORE DECEMBER 31, 2007, THE Department may not authorize and the State, county, and municipal corporation

may not grant the property tax credit under this section AFTER DECEMBER 31, 2012, [for a dwelling] unless an application is filed with the Department as required under this paragraph[: 1. within 180 days following the date the dwelling is transferred for consideration to new ownership, for a dwelling that is transferred for consideration to new ownership after December 31, 2007; or 2. on or before December 31, 2012, for a dwelling that was last transferred for consideration to new ownership on or before December 31,

2007].

(IV) IF A DWELLING PREVIOUSLY RECEIVED A CREDIT UNDER THIS SECTION AND FAILED TO QUALIFY FOR 1 TAXABLE YEAR BECAUSE OF A FAILURE TO FILE THE APPLICATION REQUIRED UNDER THIS PARAGRAPH, THE DEPARTMENT: 1. SHALL GRANT THE CREDIT FOR THE DWELLING FOR THE NEXT FOLLOWING TAXABLE YEAR ON THE TIMELY FILING OF THE

APPLICATION BY THE SAME HOMEOWNER WHO PREVIOUSLY RECEIVED THE

CREDIT; AND


2. SHALL CALCULATE THE PRIOR YEAR’S TAXABLE ASSESSMENT FOR THE DWELLING AS IF THE CREDIT HAD NOT BEEN LOST FOR

THE 1 INTERVENING TAXABLE YEAR.

[(iv)] (V) The Department shall provide a homeowner the option to submit the application required under this paragraph electronically on the Department’s website. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July June 1, 2009, and shall be applicable to all taxable years beginning after June 30, 2009. Approved by the Governor, May 7, 2009.

Chapter 363


Tax – Property – Exempt Manufacturing Personal Property Application Deadline

FOR the purpose of providing that a property tax exemption for certain manufacturing

personal property shall be granted for a certain taxable year under certain circumstances if the owner files a certain application within a certain period after the date of the first assessment notice that includes the manufacturing personal property; providing for the application of this Act; and generally relating to applications for property tax exemptions for certain manufacturing personal property.


Section 7–104 and 11–103 Annotated Code of Maryland (2007 Replacement Volume and 2008 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article – Tax – Property 7–104.


(a) Except as provided in subsection (c) of this section and in §§ 7–202 and 7–215 of this title, property tax on wholly exempt property shall be abated for the taxable year that follows the date on which the property became exempt. (b) If an owner of property subject to an exemption on June 30 files an application for abatement on or before the following September 1 with the Department or the supervisor, the tax is abated for the taxable year. (c) If property that is exempt from property tax is transferred to a person whose use of the property qualifies the property for an exemption from the date of transfer, then the property tax shall be abated from that date if the transferee: (1) files an application under § 7–103 of this subtitle on or before September 1 of the following taxable year; or (2) files an application under § 7–225 of this title within 6 months after receipt of the first assessment notice which includes the manufacturing personal property that is issued after the date of the transfer.

(D) IF THE OWNER OF MANUFACTURING PERSONAL PROPERTY ON JANUARY 1 FILES AN APPLICATION UNDER § 7–225 OF THIS TITLE WITHIN 6 MONTHS AFTER THE DATE OF THE FIRST ASSESSMENT NOTICE FOR A TAXABLE

YEAR THAT INCLUDES THE MANUFACTURING PERSONAL PROPERTY AND THE

APPLICATION IS APPROVED, THE EXEMPTION SHALL BE GRANTED FOR THAT TAXABLE YEAR THAT APPEARS ON THE ASSESSMENT NOTICE. 11–103. (a) If a person who has filed a report under this title determines that information was not reported accurately, the person may file an amended report within 3 years after the April 15th that the original report was due. (b) A person filing an amended report under subsection (a) of this section may only claim an exemption for personal property used in manufacturing if an exemption for personal property used in the manufacturing process was previously

approved for that taxable year under §§ 7–104(b) and 7–225(d) [or], under §§ 7–104(c) and 7–225(d), OR UNDER §§ 7–104(D) AND 7–225(D) of this article. (c) After reviewing an amended report, the Department shall: (1) issue a corrected assessment notice; or (2) notify the person that the original assessment notice will not be adjusted.


(d) A person who receives a notice under subsection (c) of this section may appeal the change in value or classification related to the corrected information or the denial notice as provided in § 14–504 of this article. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1, 2009, and shall be applicable to all taxable years beginning after June 30, 2009. Approved by the Governor, May 7, 2009.

Chapter 364


Motor Carriers – Identification Markers – Forged Documents – Criminal Penalties

FOR the purpose of prohibiting a motor carrier person from falsifying, duplicating, or

attempting to falsify or duplicate certain knowingly falsifying or using, holding, possessing, giving away, or selling certain falsified licenses, decals, or other official documents issued by the Comptroller related documents; prohibiting a motor carrier person from manufacturing, constructing, or possessing certain paraphernalia; prohibiting a motor carrier from possessing, giving away, selling, or attempting to sell certain items; prohibiting a motor carrier from holding or using attempting to falsify or sell certain licenses or decals licenses, decals, or related documents that have been falsified or duplicated in violation of this Act; specifying certain penalties for certain violations of this Act; defining certain terms; defining “falsify” for purposes of this Act to include alter, counterfeit, duplicate, manufacture, construct, or forge; and generally relating to the falsification or duplication of certain licenses, decals, or other official documents issued by the Comptroller related documents.

BY adding to Article – Tax – General

Section 9–223 and 13–1020(d) Annotated Code of Maryland (2004 Replacement Volume and 2008 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article – Tax – General


9–223.

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS INDICATED.

(2) “FALSIFY” INCLUDES ALTER, COUNTERFEIT, DUPLICATE, MANUFACTURE, CONSTRUCT, OR FORGE.

(3) “IFTA IDENTIFICATION MARKER” MEANS ANY LICENSE OR DECAL REQUIRED BY LAW TO BE POSSESSED BY A MOTOR CARRIER AND

DISPLAYED ON A COMMERCIAL MOTOR VEHICLE UNDER THE INTERSTATE

AGREEMENTS AUTHORIZED BY § 9–205 OF THIS SUBTITLE.

(B) A MOTOR CARRIER MAY NOT FALSIFY OR DUPLICATE, OR ATTEMPT TO FALSIFY OR DUPLICATE, ANY IFTA IDENTIFICATION MARKER OR ANY OTHER OFFICIAL DOCUMENT ISSUED BY THE COMPTROLLER.

(C) A MOTOR CARRIER MAY NOT MANUFACTURE, CONSTRUCT, OR POSSESS ANY PARAPHERNALIA FOR USE IN ANY FALSIFICATION OR

DUPLICATION PROHIBITED BY THIS SECTION.

(D) A MOTOR CARRIER MAY NOT POSSESS, GIVE AWAY, SELL, OR ATTEMPT TO SELL ANY ITEM FALSIFIED OR DUPLICATED IN VIOLATION OF THIS

SECTION.

(E) A MOTOR CARRIER MAY NOT HOLD ANY IFTA IDENTIFICATION MARKER DESCRIBED IN THIS SECTION THAT HAS BEEN FALSIFIED OR

DUPLICATED IN VIOLATION OF THIS SECTION.

(F) A MOTOR CARRIER MAY NOT USE ANY FALSIFIED OR DUPLICATED IFTA IDENTIFICATION MARKER DESCRIBED IN THIS SECTION.

(B) A PERSON MAY NOT KNOWINGLY:

(1) FALSIFY ANY IFTA IDENTIFICATION MARKER OR OTHER OFFICIAL DOCUMENT ISSUED BY THE COMPTROLLER RELATED DOCUMENT;

(2) USE, HOLD, POSSESS, GIVE AWAY, OR SELL A FALSIFIED IFTA IDENTIFICATION MARKER OR OTHER OFFICIAL DOCUMENT ISSUED BY THE

COMPTROLLER RELATED DOCUMENT; OR

(3) ATTEMPT TO FALSIFY OR SELL ANY IFTA IDENTIFICATION MARKER OR OTHER OFFICIAL DOCUMENT ISSUED BY THE COMPTROLLER RELATED DOCUMENT.


13–1020.

(D) A MOTOR CARRIER WHO VIOLATES A PROVISION OF § 9–223 OF THIS ARTICLE IS GUILTY OF A MISDEMEANOR AND, ON CONVICTION, IS SUBJECT TO A FINE NOT EXCEEDING $1,000 OR IMPRISONMENT NOT EXCEEDING 1 YEAR OR BOTH. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2009. Approved by the Governor, May 7, 2009.

Chapter 365

(House Bill 46) AN ACT concerning

Caroline County – Alcoholic Beverages – Special Multiple Event Licenses FOR the purpose of authorizing in Caroline County an applicant to purchase special

multiple event alcoholic beverages licenses; specifying certain license fees; prohibiting the total number of days for which special multiple event licenses may be issued to a single applicant from exceeding a certain number of days; requiring that fees for special multiple event licenses be paid in advance; prohibiting the Board of License Commissioners from issuing certain refunds under certain circumstances; providing for certain restrictions on the issuance of special multiple event licenses; requiring that a certain server be on the licensed premises whenever alcoholic beverages are served under the license; and generally relating to alcoholic beverages licenses in Caroline County.

BY repealing and reenacting, without amendments, Article 2B – Alcoholic Beverages

Section 7–101(j)(1) Annotated Code of Maryland (2005 Replacement Volume and 2008 Supplement) BY adding to Article 2B – Alcoholic Beverages

Section 7–101(j)(7) Annotated Code of Maryland (2005 Replacement Volume and 2008 Supplement)


SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article 2B – Alcoholic Beverages 7–101. (j) (1) The provisions of this subsection apply only in Caroline County.

(7) (I) INSTEAD OF PURCHASING INDIVIDUAL EVENT LICENSES FOR A PARTICULAR CLASS OF LICENSE, AN APPLICANT MAY PURCHASE A SPECIAL MULTIPLE EVENT LICENSE FOR THE SAME CLASS OF LICENSE.

(II) FEES FOR A SPECIAL MULTIPLE EVENT LICENSE ARE:

1. $125 $250 FOR NOT MORE THAN 10 EVENTS PER YEAR;

2. $250 $500 FOR NOT MORE THAN 20 EVENTS PER YEAR;

3. $375 $750 FOR NOT MORE THAN 30 EVENTS PER YEAR; AND

4. $500 $1,000 FOR NOT MORE THAN 40 EVENTS PER YEAR.

(III) THE TOTAL NUMBER OF DAYS FOR WHICH SPECIAL MULTIPLE EVENT LICENSES MAY BE ISSUED TO A SINGLE APPLICANT MAY NOT

EXCEED 40 DAYS PER CALENDAR YEAR.

(IV) 1. THE APPLICANT SHALL PAY IN ADVANCE THE FEE FOR A SPECIAL MULTIPLE EVENT LICENSE.

2. THE BOARD MAY NOT ISSUE A REFUND IF THE HOLDER OF THE LICENSE IN A CALENDAR YEAR HOLDS FEWER THAN THE

NUMBER OF EVENTS THAT THE HOLDER IS ENTITLED TO CONDUCT.

(V) A SPECIAL MULTIPLE EVENT LICENSE SHALL BE ISSUED:

1. FOR ONE PREMISES ONLY; AND

2. SUBJECT TO SUBPARAGRAPH (VI) OF THIS PARAGRAPH, TO THE SAME APPLICANT FOR ALL EVENTS FOR WHICH THE


LICENSE IS ISSUED, UNLESS THE BOARD IN WRITING APPROVES A SUBSTITUTE APPLICANT.

(VI) THE BOARD MAY HOLD A HEARING BEFORE APPROVING A SUBSTITUTE APPLICANT UNDER SUBPARAGRAPH (V)2 OF THIS PARAGRAPH.

(VII) A SERVER WHO IS CURRENTLY CERTIFIED AS HAVING COMPLETED AN ALCOHOL AWARENESS PROGRAM SHALL BE ON THE PREMISES

FOR WHICH A SPECIAL MULTIPLE EVENT LICENSE IS ISSUED WHENEVER

ALCOHOLIC BEVERAGES ARE SERVED UNDER THE LICENSE. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1, 2009. Approved by the Governor, May 7, 2009.

Chapter 366


Human Relations – Substantive Modifications FOR the purpose of repealing obsolete provisions of law relating to hearing examiners

appointed by the Commission on Human Relations; prohibiting discrimination by certain licensed or regulated persons on the basis of age; prohibiting discrimination in the leasing of commercial property on the basis of sexual orientation; prohibiting discrimination in the leasing of commercial property against a person, rather than an individual; prohibiting certain notices or advertisements relating to employment from indicating any preference, limitation, specification, or discrimination based on marital status; altering the definition of “disability” for purposes of provisions prohibiting discrimination in housing; authorizing a certain complainant to file a request for reconsideration of a certain finding; providing that an administrative law judge, rather than the Commission, may allow a certain complaint or answer to be reasonably amended; establishing that a certain decision and order issued by an administrative law judge shall become the final order of the Commission under certain circumstances; repealing a requirement that certain judicial review standards govern the court in a certain action to enforce compliance with a certain order of the Commission; expanding the relief available to an intervening party in a certain action; repealing a provision making it a misdemeanor to file and pursue a complaint of discrimination under certain circumstances; repealing a provision making it a misdemeanor to receive


remuneration for participation in a racial demonstration in the State; correcting cross–references and clarifying language in provisions of law relating to employment practices by persons granted certain privileges by the Maryland Aviation Administration; and generally making substantive modifications, clarifications, and corrections in provisions of law relating to human relations.

BY repealing Article – State Government

Section 20–207, 20–1104, and 20–1105 Annotated Code of Maryland

(As enacted by Chapter 120 (H.B. 51)(9lr0791) of the Acts of the General Assembly of 2009)

BY repealing and reenacting, with amendments, Article – State Government

Section 20–402, 20–501, 20–606(e), 20–701(b)(1), 20–1005(d), 20–1008(e), 20–1011, and 20–1014(c)

Annotated Code of Maryland (As enacted by Chapter 120 (H.B. 51)(9lr0791) of the Acts of the General

Assembly of 2009) BY adding to Article – State Government

Section 20–1009(e) Annotated Code of Maryland

(As enacted by Chapter 120 (H.B. 51)(9lr0791) of the Acts of the General Assembly of 2009)

BY repealing and reenacting, with amendments, Article – Transportation

Section 5–408 Annotated Code of Maryland (2008 Replacement Volume) BY renumbering Article – State Government

Section 20–208 to be Section 20–207


Assembly of 2009) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article – State Government


[20–207. (a) The Commission shall appoint the number of hearing examiners provided in the State budget. (b) A hearing examiner shall be an attorney who is qualified by experience to handle discrimination cases of the type arising under this title. (c) A hearing examiner is entitled to the compensation provided in the State budget. (d) In a discrimination case assigned to a hearing examiner, the hearing examiner shall: (1) conduct a hearing; (2) make findings of fact; (3) draw conclusions of law; and (4) prepare a provisional order. (e) A provisional order prepared by a hearing examiner shall become the final order of the Commission unless an appeal from the provisional order is taken to

the Commission.] 20–402. A person that is licensed or regulated by a unit in the Department of Labor, Licensing, and Regulation listed in § 2–108 of the Business Regulation Article may not refuse, withhold from, or deny any person any of the accommodations, advantages, facilities, privileges, sales, or services of the licensed or regulated person or discriminate against any person because of the person’s race, sex, creed, color, national

origin, marital status, sexual orientation, AGE, or disability. 20–501. An owner or operator of commercial property, an agent or employee of the owner or operator of commercial property, or a person that is licensed or regulated by the

State may not discriminate against [an individual] A PERSON in the terms, conditions, or privileges of the leasing of property for commercial use, or in the provision of services or facilities in connection with the leasing of property for

commercial use, because of the [individual’s] PERSON’S race, color, religion, sex, age, disability, marital status, SEXUAL ORIENTATION, or national origin. 20–606.


(e) (1) Except as provided in paragraph (2) of this subsection, an employer, labor organization, or employment agency may not print or cause to be printed or published any notice or advertisement relating to employment by the employer, membership in or any classification or referral for employment by the labor organization, or any classification or referral for employment by the employment agency that indicates any preference, limitation, specification, or discrimination based

on race, color, religion, sex, age, national origin, MARITAL STATUS, sexual orientation, or disability. (2) A notice or advertisement may indicate a preference, limitation,

specification, or discrimination based on religion, sex, age, national origin, MARITAL

STATUS, or disability if religion, sex, age, national origin, MARITAL STATUS, or disability is a bona fide occupational qualification for employment. 20–701. (b) (1) “Disability” means:

(i) a [disability] PHYSICAL OR MENTAL IMPAIRMENT that substantially limits one or more of an individual’s major life activities;

(ii) a record of having a [disability] PHYSICAL OR MENTAL IMPAIRMENT that substantially limits one or more of an individual’s major life activities; or

(iii) being regarded as having a [disability] PHYSICAL OR MENTAL IMPAIRMENT that substantially limits one or more of an individual’s major life activities. 20–1005.

(d) (1) IF THERE IS A FINDING OF NO PROBABLE CAUSE TO BELIEVE THAT A DISCRIMINATORY ACT HAS BEEN OR IS BEING COMMITTED, THE COMPLAINANT MAY FILE A REQUEST FOR RECONSIDERATION OF THE FINDING

IN ACCORDANCE WITH THE COMMISSION’S REGULATIONS.

(2) Unless the U.S. Equal Employment Opportunity Commission has jurisdiction over the subject matter of the complaint, a denial of a request for reconsideration of a finding of no probable cause by the Commission is a final order appealable to the circuit court as provided in § 10–222 of this article. 20–1008.

(e) The [Commission] ADMINISTRATIVE LAW JUDGE may allow any complaint or answer to be reasonably amended.


20–1009.

(E) UNLESS A TIMELY APPEAL IS FILED WITH THE COMMISSION IN ACCORDANCE WITH THE COMMISSION’S REGULATIONS, A DECISION AND ORDER ISSUED BY THE ADMINISTRATIVE LAW JUDGE UNDER THIS SECTION SHALL

BECOME THE FINAL ORDER OF THE COMMISSION. 20–1011.

[(a)] If a respondent refuses to comply with an order of the Commission issued under this title, the Commission may bring a civil action to enforce compliance with the order in the appropriate equity court of the county where the alleged discriminatory act occurred.

[(b) The judicial review standards set forth in Title 10, Subtitle 2 of this article shall govern the court in hearing a case brought under this section.] 20–1014. (c) The court may grant any appropriate relief to an intervening party that

may be granted to a plaintiff in a civil action under [§ 20–1012] § 20–1013 of this subtitle.

[20–1104. (a) This section does not affect the right of a respondent to bring a civil action against a person that has filed a complaint under Subtitle 10, Part I of this title. (b) A person is guilty of a misdemeanor if: (1) the person has claimed to be aggrieved under Subtitle 10, Part I of this title; (2) the person has pursued the complaint under §§ 20–1006 and 20–1008 through 20–1011 of this title; (3) the Commission has: (i) found the complaint to be unfounded; or (ii) dismissed the complaint without further action against the respondent; and (4) the court has found the complaint to have been made maliciously.


(c) A person convicted under this section is subject to imprisonment not

exceeding 1 year or a fine not exceeding $500 or both.]

[20–1105. (a) A person may not receive any remuneration for participation in a racial demonstration in the State. (b) A person who violates this section is guilty of a misdemeanor and on conviction is subject to imprisonment not exceeding 1 year or a fine not exceeding

$1,000 or both.]

Article – Transportation 5–408. (a) In its operation of an airport, airport facility, or air navigation facility owned or controlled by this State, the Administration, with the approval of the Secretary and subject to the direction of the Commission, may contract, lease, or otherwise arrange with any person to: (1) Provide the person with services furnished by the Administration or its agents at the airport or facility; or (2) Grant to the person the privilege of: (i) Using or improving for commercial purposes any part of the airport or facility; or (ii) Supplying services, facilities, goods, commodities, or other things at the airport or facility. (b) (1) For the privileges granted, the Administration may establish any terms and conditions and fix any charges, rentals, or fees that: (i) Are reasonable and uniform for the same class of privilege or service; (ii) Are established with due regard to the property and improvements used and the expenses of operation to this State; and (iii) Do not deprive the public of its rightful, equal, and uniform use of any part of the airport or facility. (2) The Administration shall monitor the charges, fees, or prices of any goods or services offered to the public by persons granted the privilege under this


section. Every contract, lease, or other arrangement shall provide that charges, fees, or prices: (i) May not be increased without the prior approval of the Administration; and (ii) Are to be reasonable. In determining reasonableness the Administration shall consider the charges, fees, or prices for the same goods or services at comparable airports.

(3) The Administration shall [monitor]:

(I) MONITOR the employment practices [of persons granted privileges under Article 49B, § 14 of the Code, relating to discrimination in employment,] UNDER TITLE 20, SUBTITLE 6 OF THE STATE GOVERNMENT ARTICLE OF PERSONS GRANTED PRIVILEGES UNDER THIS SECTION; and [shall refer]

(II) REFER for investigation all alleged violations of [Article 49B, § 14] § 20–606 OF THE STATE GOVERNMENT ARTICLE to the State Commission [of] ON Human Relations, the Equal Employment Opportunity Commission, or any appropriate State or federal administrative body. (c) (1) In this subsection “commercial activity” means the sale, merchandising, marketing, or promotion of any goods or services. (2) Commercial activity is permitted at an airport operated by the Administration only when expressly authorized by and in a manner prescribed by the Administration. SECTION 2. AND BE IT FURTHER ENACTED, That Section(s) 20–208 of Article – State Government of the Annotated Code of Maryland (as enacted by Chapter 120 (H.B. 51)(9lr0791) of the Acts of the General Assembly of 2009) be renumbered to be Section(s) 20–207. SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2009. Approved by the Governor, May 7, 2009.

Chapter 367

(House Bill 54)


AN ACT concerning

Human Relations – Civil Actions – Unlawful Employment Practices FOR the purpose of clarifying that certain provisions of law relating to civil actions

elected or filed by certain complainants apply only to unlawful employment practices; making certain conforming changes; and generally relating to the relief available for certain discriminatory acts.

BY repealing and reenacting, with amendments, Article – State Government

Section 20–1006(b), 20–1007(a) and (b), 20–1012(a) and (b), and 20–1013(a) and (b)


Assembly of 2009) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article – State Government 20–1006. (b) The Executive Director of the Commission shall cause a written notice to be issued and served in the name of the Commission, together with a copy of the complaint, requiring the respondent to answer the charges of the complaint at a public hearing: (1) before an administrative law judge at a time and place certified in the notice; or

(2) IF THE COMPLAINT ALLEGES AN UNLAWFUL EMPLOYMENT

PRACTICE, in a civil action elected under § 20–1007 of this subtitle. 20–1007.

(a) (1) When a complaint ALLEGING AN UNLAWFUL EMPLOYMENT

PRACTICE is issued and served under § 20–1006 of this subtitle, a complainant or respondent may elect to have the claims asserted in the complaint determined in a civil action brought by the Commission on the complainant’s behalf, if: (i) the Commission has found probable cause to believe the

respondent has engaged in or is engaging in [a discriminatory act] AN UNLAWFUL EMPLOYMENT PRACTICE; and


(ii) there is a failure to reach an agreement to remedy and

eliminate the [discriminatory act] UNLAWFUL EMPLOYMENT PRACTICE. (2) An election under paragraph (1) of this subsection shall be made within 30 days after the complainant or respondent receives service under § 20–1006(b) of this subtitle. (3) If an election is not made under paragraph (1) of this subsection, the Commission shall provide an opportunity for a hearing as provided under § 20–1008(a) of this subtitle.

(b) When a complaint ALLEGING AN UNLAWFUL EMPLOYMENT PRACTICE is issued and served under § 20–1006 of this subtitle, the Commission may elect to have the claims asserted in the complaint determined in a civil action brought on the Commission’s own behalf, if: (1) the Commission has found probable cause to believe the

respondent has engaged in or is engaging in [a discriminatory act] AN UNLAWFUL EMPLOYMENT PRACTICE; and (2) there is a failure to reach an agreement to remedy and eliminate

the [discriminatory act] UNLAWFUL EMPLOYMENT PRACTICE. 20–1012. (a) Within 60 days after an election is made under § 20–1007 of this subtitle, the Commission shall file a civil action in the circuit court for the county where the

alleged [discriminatory act] UNLAWFUL EMPLOYMENT PRACTICE occurred.

(b) If the court finds that [a discriminatory act] AN UNLAWFUL EMPLOYMENT PRACTICE occurred, the court may provide the remedies specified in § 20–1009(b) of this subtitle. 20–1013. (a) In addition to the right to make an election under § 20–1007 of this

subtitle, a complainant may bring a civil action against the respondent alleging [a discriminatory act] AN UNLAWFUL EMPLOYMENT PRACTICE, if: (1) the complainant initially filed a timely administrative charge or a

complaint under federal, State, or local law alleging [a discriminatory act] AN UNLAWFUL EMPLOYMENT PRACTICE by the respondent; (2) at least 180 days have elapsed since the filing of the administrative charge or complaint; and


(3) the civil action is filed within 2 years after the alleged

[discriminatory act] UNLAWFUL EMPLOYMENT PRACTICE occurred. (b) A civil action under this section shall be filed in the circuit court for the

county where the alleged [discriminatory act] UNLAWFUL EMPLOYMENT PRACTICE occurred. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2009. Approved by the Governor, May 7, 2009.

Chapter 368


Frederick County – Overdue Water and Sewer Charge – Restoration of Service Penalty

FOR the purpose of altering the penalty imposed on water users in Frederick County

for restoring service after an overdue charge for water and sewer services has been paid; and generally relating to water and sewer service charges in Frederick County.

BY repealing and reenacting, with amendments, The Public Local Laws of Frederick County

Section 2–13–23(a)(1) Article 11 – Public Local Laws of Maryland (2004 Edition and September 2008 Supplement, as amended) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article 11 – Frederick County 2–13–23. (a) For the purpose of providing funds for maintaining, repairing, and operating its water and sewerage systems and for its operation and other expenses, including property depreciation allowances, and for interest on and the retirement of bonds as specified in this chapter, the board may make the following charges:


(1) A water and sewer service charge. The rates for water and sewer service shall consist of a minimum or ready–to–serve charge which shall be based upon the size of the meter on the water connection leading to the property, and of a charge for water used, which shall be based upon the amount of water passing through the meter during the period between the last two readings. The meter shall be required to be placed on each water connection by and at the sole expense of the county, and it shall remain the property of the county. The rates shall be classified within Frederick County in whatever manner the board deems advisable. However, the classification shall be based upon the quantities of water used and shall be, insofar as possible, uniform throughout Frederick County. If the board at any time does not have meters available to install in all the properties in a given locality that are connected to the system, then a flat rate shall be charged on properties in which meters have not yet been installed. That rate shall be uniform in each system and based upon the ready–to–serve charge and the amount of water used. Bills for water and sewer charges shall be sent either quarterly or semiannually, as the board determines, to each property served and shall be payable at the office of the board or whatever other place the board designates. The charges shall be a lien upon the property served and collectible as elsewhere provided. If any bill remains unpaid 30 days after the date it was sent, the board, after written notice left upon the premises or mailed to the last known address of the owner, shall turn off the water from the property in question. The water may not be turned on again until the bill has been

paid, including a [$10] penalty IN A REASONABLE AMOUNT TO BE ESTABLISHED BY

THE BOARD OF COUNTY COMMISSIONERS. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2009. Approved by the Governor, May 7, 2009.

Chapter 369


Talbot County – Alcoholic Beverages – Limited Wineries FOR the purpose of authorizing a holder 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; prohibiting a holder from serving or selling wine and pomace brandy to the public at a warehouse; making a stylistic change; and generally relating to holders of Class 4 manufacturer’s licenses in Talbot County.

BY repealing and reenacting, without amendments,


Article 2B – Alcoholic Beverages Section 2–205(a)

Annotated Code of Maryland (2005 Replacement Volume and 2008 Supplement) BY repealing and reenacting, with amendments, Article 2B – Alcoholic Beverages

Section 2–205(b) Annotated Code of Maryland (2005 Replacement Volume and 2008 Supplement) BY adding to Article 2B – Alcoholic Beverages

Section 2–205(d) Annotated Code of Maryland (2005 Replacement Volume and 2008 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article 2B – Alcoholic Beverages 2–205. (a) In this section, “pomace brandy” means brandy that is distilled from the pulpy residue of the wine press, including the skins, pips, and stalks of grapes. (b) A Class 4 manufacturer’s license: (1) Is a limited winery license; (2) Authorizes the holder to establish and operate in this State a plant for fermenting and bottling wine and distilling and bottling pomace brandy made from Maryland agriculture products at the location described in the license, unless the Secretary of Agriculture determines that there is insufficient supply available of Maryland agriculture products;

(3) [Permits] SUBJECT TO SUBSECTION (D) OF THIS SECTION, ALLOWS the license holder to: (i) Sell and deliver this wine and pomace brandy to any wholesale licensee or permit holder in this State, or person outside of this State, authorized to acquire it; (ii) Sell this wine and pomace brandy made at the plant to persons participating in a guided tour of the facility. The purchase is limited to one quart of each brand per person per year. Any person who has attained the Maryland


legal drinking age may purchase the wine. The licensee may operate only in one location in the State; (iii) Serve at no charge not more than 6 ounces of wine and pomace brandy made at the licensed facility to a person who is participating in a guided tour of the facility, provided the person has attained the Maryland legal drinking age; (iv) Sell by the glass wine and pomace brandy produced by the licensee to persons participating in a guided tour of the facility or attending a scheduled promotional event or other organized activity at the licensed premises; and (v) Store on its licensed premises, in a segregated area approved by the Comptroller, the product of other Class 4 limited wineries to be used at bona fide Maryland Winery Association promotional activities, provided records are maintained and reports filed as may be required by the Comptroller; and (4) Limits the license holder to distilling and bottling not more than 200 gallons of pomace brandy each year.

(D) A HOLDER OF A CLASS 4 MANUFACTURER’S LICENSE IN TALBOT COUNTY: (1) MAY PRODUCE WINE AND POMACE BRANDY AT EACH WAREHOUSE FOR WHICH THE HOLDER HAS BEEN ISSUED AN INDIVIDUAL

STORAGE PERMIT; BUT (2) MAY NOT SERVE OR SELL WINE AND POMACE BRANDY AT A WAREHOUSE TO THE PUBLIC. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1, 2009. Approved by the Governor, May 7, 2009.

Chapter 370


Dorchester County – School Bus Length of Operation – Sunset Repeal


FOR the purpose of repealing the termination date for a provision of law that alters the length of time a school bus may be operated in Dorchester County; and generally relating to school buses in Dorchester County.

BY repealing and reenacting, with amendments, Chapter 637 of the Acts of the General Assembly of 2008

Section 2 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Chapter 637 of the Acts of 2008 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect

July 1, 2008. [It shall remain effective for a period of 3 years and, at the end of June 30, 2011, with no further action required by the General Assembly, this Act shall be

abrogated and of no further force and effect.] SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2009. Approved by the Governor, May 7, 2009.

Chapter 371


Interagency Committee on Aging Services – Modifications Department of Health and Mental Hygiene – Long–Term Care Supports and

Services – Report FOR the purpose of altering the membership of the Interagency Committee on Aging

Services; requiring the Interagency Committee to report on certain recommendations to the General Assembly on or before a certain date; requiring the Interagency Committee to create certain subcommittees, review certain plans and reports, and identify certain service needs of seniors and adults with disabilities in the State; altering the information to be included in a certain annual report; making technical changes; and generally relating to the Interagency Committee on Aging Services requiring the Secretary of Health and Mental Hygiene to submit certain reports to the General Assembly on or before certain dates; providing for the purpose of a certain program; requiring the Secretary to convene a certain stakeholder group and provide for a certain stakeholder process; providing for the membership of a certain stakeholder


group; requiring the Department to submit a federal waiver on or before a certain date under certain circumstances; and generally relating to the Department of Health and Mental Hygiene and a report on long–term care supports and services.

BY repealing and reenacting, without amendments, Article – Human Services

Section 10–301 and 10–309 Annotated Code of Maryland (2007 Volume and 2008 Supplement) BY repealing and reenacting, with amendments, Article – Human Services

Section 10–302, 10–303, 10–304, 10–306, and 10–310 Annotated Code of Maryland (2007 Volume and 2008 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That: (a) The On or before September 1, 2009, the Secretary of Health and Mental Hygiene shall submit to the General Assembly an interim report, and on or before December 1, 2009 2010, and shall submit a final report on or before December 1, 2010 to the General Assembly, in accordance with § 2–1246 of the State Government Article, on the feasibility of creating a coordinated care program to reform the provision of long–term care services under the Medical Assistance program and other State programs in a manner that improves and integrates the care of individuals, including health care services, designed as necessary to meet the differing needs of seniors and adults with disabilities in the State. (b) The purpose of the program created under subsection (a) of this section is to: (1) deliver high–quality long–term care supports and services in a coordinated and integrated manner; (2) deliver long–term care supports and services in the most appropriate care setting to meet the needs and preferences of eligible individuals; (3) remove systemic and individual barriers to receiving care in home– and community–based settings, as preferred by the individual; and (4) ensure that, if the State plans to manage long–term care through at–risk contracts, the carve–out of mental health services and hospice services are implemented as required by Chapter 4 of the Acts of the General Assembly of the 2004 Special Session.


(c) In developing the interim report required under subsection (a) of this section, the Secretary shall conduct a literature review of the items included in subsection (d)(2)(i) of this section and the process for convening the stakeholders required under subsection (d)(1) of this section. (d) In developing the final report reports required under subsection (a) of this section, the Secretary shall: (1) convene a group of stakeholders both public and private and representatives of interested and affected parties as provided under subsection (e) of this section, to evaluate and make recommendations consistent with the requirements of this Act; and section. (d) The stakeholder group required under subsection (c) of this section shall include: (1) legislators; (2) affected State agencies; (3) providers with experience in dementia, geriatrics, end–of–life care, mental health, and disabilities in younger adults; (4) long–term care providers; (5) managed care organizations; (6) acute care providers; (7) lay care providers; (8) advocates for individuals receiving long–term care or community services; and (9) consumers. (2) (e) provide for a The stakeholder process to develop recommendations for a coordinated care program consistent with the purpose of this section that includes shall include a review of: (i) (1) long–term plans, consensus reports, experiences, and best practices of in the State and in other states, relating to the management and coordination of long–term care supports and services, including mental health and behavioral health supports and services for individuals outside of the public mental health system, under the Medical Assistance program and other State programs, including programs that have carved out nursing home services, programs or plans that are administered within a State agency or by an independent entity, and the


Community Choice CommunityChoice Advisory Group’s consensus recommendations; and (ii) (2) the Department’s plan for evaluating the existing home– and community–based services infrastructure, including: 1. (i) identifying the projected need and cost for additional services adequate to support the needs of the population, including strategies to encourage the development of the additional services; 2. (ii) utilizing funds from the American Recovery and Reinvestment Act of 2009, to the extent practicable; 3. (iii) considering whether to pursue a pilot or statewide program; and 4. (iv) identifying any other areas in which the service needs of seniors and adults with disabilities in the State should be addressed, including streamlined electronic eligibility determinations and electronic billing components; and (iii) (v) whether a federal waiver is necessary to create a coordinated care program and, if so, the type of waiver that should be sought. (e) The stakeholder group required under subsection (d)(1) of this section shall include: (1) legislators; (2) affected State agencies; (3) providers with experience in dementia, geriatrics, end–of–life care, mental health, and disabilities in younger adults; (4) long–term care providers; (5) managed care organizations; (6) acute care providers; (7) lay care providers; (8) advocates for individuals receiving long–term care or community services; and (9) consumers.


(f) The Department shall: (1) include in the interim report required under subsection (a) of this section a timeline and work plan for the stakeholder process required under subsection (e) of this section; and (2) include, in the final report required under subsection (a) of this section, draft legislation for approval by the General Assembly that would enact the consensus recommendations developed through the stakeholder process under this section and a timeframe for submitting a federal waiver, if necessary. (g) If the General Assembly enacts legislation that requires the submission of a federal waiver, the Department shall submit the waiver on or before June 1, 2011. SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article – Human Services 10–301. There is an Interagency Committee on Aging Services in the Executive Department. 10–302. (a) The Interagency Committee consists of the following members: (1) the Secretary of Aging; (2) the Secretary of Disabilities; (3) the Secretary of Health and Mental Hygiene; (4) the Secretary of Housing and Community Development; (5) the Secretary of Human Resources; (6) the Secretary of Labor, Licensing, and Regulation; (7) the Secretary of Transportation;

(8) THE SECRETARY OF BUSINESS AND ECONOMIC DEVELOPMENT;

(9) THE SECRETARY OF HIGHER EDUCATION;


(10) THE SECRETARY OF BUDGET AND MANAGEMENT;

[(8)] (11) a representative from an area agency appointed by the Governor from a list submitted by the Maryland Association of Area Agencies on Aging; and

[(9)] (12) a member of the public appointed by the Governor. (b) (1) The term of a member appointed by the Governor under subsection

[(a)(8) or (9)] (A)(11) OR (12) of this section is 2 years.

(2) A member appointed by the Governor under subsection [(a)(8) or (9)] (A)(11) OR (12) of this section may not be reappointed for more than 2 additional terms. 10–303. The Governor shall appoint the chair of the Interagency Committee from among

the members listed in § 10–302(a)(1) through [(7)] (10) of this subtitle. 10–304. (a) (1) An Executive Director shall serve as the principal staff of the Interagency Committee. (2) The Executive Director shall be an employee of the Department. (b) Each member of the Interagency Committee listed in § 10–302(a)(1)

through [(7)] (10) of this subtitle shall designate an employee as liaison with the Executive Director to: (1) implement policies of the Interagency Committee; and (2) monitor the expenditure of funds to serve seniors. 10–306. (a) (1) The Interagency Committee shall develop and update annually a plan for providing coordinated health services, social services, transportation, housing, and employment services to seniors in the State consistent with the priorities that the Department establishes. (2) If the members of the Interagency Committee cannot agree on a plan, the chair shall refer the matter to the Governor for resolution.


(b) Annually on or before a date that the Governor sets, the Interagency Committee shall develop and present to the Governor and the General Assembly a consolidated operating budget for services to seniors that: (1) sets forth the relevant portions of the operating budget of any unit responsible for services to seniors; and (2) is consistent with the plan developed under subsection (a) of this section. (c) The Interagency Committee shall establish interagency agreements and adopt regulations to: (1) implement and coordinate services to seniors consistent with the plan developed under subsection (a) of this section; (2) maximize the sharing of resources among units of State government for services to seniors; (3) consolidate planning and evaluation efforts at the State and local levels; and (4) coordinate and expedite the delivery of services to seniors by providing technical assistance to local agencies. (d) (1) The Interagency Committee shall assist county agencies to establish local interagency committees composed of: (i) the directors of the local health department, local department of social services, and area agency; and (ii) officials from housing, transportation, mental health, employment, and economic development agencies. (2) Local interagency committees shall coordinate and expedite the delivery of services to seniors at the local level.

(E) (1) ON OR BEFORE JANUARY 1, 2010, THE INTERAGENCY COMMITTEE SHALL REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE WITH § 2–1246 OF THE STATE GOVERNMENT ARTICLE, ON CONSENSUS RECOMMENDATIONS TO REFORM THE PROVISION OF MEDICAL ASSISTANCE PROGRAM LONG–TERM CARE SERVICES, INCLUDING HEALTH SERVICES, DESIGNED AS NECESSARY TO MEET THE DIFFERING NEEDS OF SENIORS AND

ADULTS WITH DISABILITIES IN THE STATE.


(2) IN DEVELOPING THE RECOMMENDATIONS REQUIRED UNDER PARAGRAPH (1) OF THIS SUBSECTION, THE INTERAGENCY COMMITTEE SHALL:

(I) CREATE STAKEHOLDER SUBCOMMITTEES CONSISTING OF PROVIDERS, CONSUMERS, ADVOCATES, AND LOCAL INTERAGENCY COMMITTEES TO ASSIST IN THE DEVELOPMENT OF THE RECOMMENDATIONS;

(II) REVIEW LONG–TERM CARE PLANS AND CONSENSUS REPORTS CREATED IN THE STATE AND IN OTHER STATES RELATED TO LONG–TERM CARE, INCLUDING LONG–TERM CARE MANAGED CARE; AND

(III) IDENTIFY AREAS IN WHICH THE SERVICE NEEDS OF SENIORS AND ADULTS WITH DISABILITIES IN THE STATE NEED TO BE ADDRESSED. 10–309. (a) (1) The Interagency Committee shall: (i) develop a system to provide services to frail or health–impaired seniors at risk of institutionalization; and (ii) coordinate the system among the agencies represented on the Interagency Committee. (2) The Department shall administer the system for the Interagency Committee. (b) The services shall include: (1) integrated screening and evaluation; (2) development of an individual plan of care; (3) in–home services such as minor home repair, shopping assistance, homemaking, personal care, meal delivery or preparation, supportive services to group or shared living arrangements, transportation services, and health services; and (4) community services such as day care, congregate meals, and other programs to assist seniors or adult caregivers in providing care for seniors. (c) To be eligible to participate in the system, a county or counties shall establish a community–based plan that: (1) is developed by a local or regional committee composed of:


(i) the directors of the local health department, local department of social services, and area agency; and (ii) officials of other relevant agencies, such as local housing, transportation, employment, and economic development officials; (2) is consistent with the plan developed under § 10–306(a) of this subtitle; (3) specifies administrative arrangements to evaluate and develop care plans for frail or health–impaired seniors; (4) encourages further coordination of service delivery; (5) fosters individual contributions for services provided; (6) fosters the development of innovative service delivery; (7) fosters the development of services in conjunction with the private sector; and (8) fosters community involvement through the use of volunteers. (d) The Interagency Committee, through the Department, shall work with local health departments, local departments of social services, area agencies, and local housing, transportation, economic development, and employment development officials to develop: (1) a system to designate case managers to secure and manage necessary services for each frail or health–impaired senior in need; and (2) guidelines to establish local or regional committees to coordinate the services system to implement this section. 10–310. Subject to § 2–1246 of the State Government Article, the Interagency Committee shall present a report before each legislative session to the General Assembly on:

(1) the plan developed under § 10–306(a) of this subtitle, INCLUDING A DESCRIPTION OF ANY CHANGES AND UPDATES TO THE PLAN;

(2) THE STATUS OF THE SYSTEM DEVELOPED UNDER § 10–309 OF THIS SUBTITLE;


[(2)] (3) the activities of the Interagency Committee; and

[(3)] (4) the status of services to seniors in the State. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1, 2009. Approved by the Governor, May 7, 2009.

Chapter 372


Insurance – Antifraud Plans FOR the purpose of making certain provisions of law relating to antifraud plans

applicable to health maintenance organizations and third party administrators; authorizing certain insurers, as part of an antifraud plan, to require an insured individual who is receiving benefits under certain policies to make certain affirmations; requiring certain insurers to make certain disclosures to insureds certain individuals under certain circumstances; and generally relating to antifraud plans.

BY adding to Article – Health – General

Section 19–706(ttt) Annotated Code of Maryland (2005 Replacement Volume and 2008 Supplement) BY adding to Article – Insurance

Section 8–321.1 Annotated Code of Maryland (2003 Replacement Volume and 2008 Supplement) BY repealing and reenacting, with amendments, Article – Insurance

Section 27–803 Annotated Code of Maryland (2006 Replacement Volume and 2008 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:


Article – Health – General

19–706.

(TTT) THE PROVISIONS OF § 27–803 OF THE INSURANCE ARTICLE APPLY TO HEALTH MAINTENANCE ORGANIZATIONS.

Article – Insurance

8–321.1.

A THIRD PARTY ADMINISTRATOR SHALL COMPLY WITH § 27–803 OF THIS ARTICLE. 27–803. (a) (1) Each authorized insurer shall institute and maintain an insurance antifraud plan. (2) Within 30 days after instituting or modifying an antifraud plan, the authorized insurer shall notify the Commissioner in writing. (b) Each antifraud plan shall establish specific procedures to: (1) prevent insurance fraud, including: (i) internal fraud that involves the authorized insurer’s employees or insurance producers; (ii) fraud that results from misrepresentations on insurance applications; and (iii) claims fraud; (2) report insurance fraud to appropriate law enforcement authorities; (3) cooperate with the prosecution of insurance fraud cases; and (4) report fraud–related data to the Commissioner and Fraud Division. (c) (1) Each authorized insurer shall file its antifraud plan with the Commissioner.


(2) The Commissioner may review each antifraud plan to determine whether it complies with the requirements of this section. (3) An antifraud plan is deemed approved unless disapproved by the Commissioner within 30 days after the date of filing. (d) (1) If the Commissioner finds that an antifraud plan does not comply with the requirements of this section, the Commissioner shall disapprove the antifraud plan and send a notice of disapproval, including the reasons for disapproval, to the authorized insurer. (2) If the Commissioner disapproves an antifraud plan, the authorized insurer shall submit a new antifraud plan to the Commissioner within 60 days after the date of disapproval. (e) During an examination under § 2–205 of this article, the Commissioner shall examine the authorized insurer’s procedures to determine whether the authorized insurer is complying with its antifraud plan. (f) The Commissioner may withhold from public inspection any part of an antifraud plan for as long as the Commissioner considers the withholding to be in the public interest.

(G) (1) AS PART OF AN ANTIFRAUD PLAN, AN AUTHORIZED INSURER MAY REQUIRE IN WRITING THAT AN INSURED INDIVIDUAL WHO IS RECEIVING

BENEFITS UNDER A WORKERS’ COMPENSATION INSURANCE POLICY OR A DISABILITY INSURANCE POLICY TO MUST AFFIRM ON A PERIODIC BASIS THAT

THE INSURED INDIVIDUAL:

(I) REMAINS ENTITLED TO THE BENEFITS; AND

(II) HAS HAD NO CHANGE IN THE CONDITION ENTITLING THE INSURED INDIVIDUAL TO THE BENEFITS.

(2) AN AUTHORIZED INSURER THAT REQUIRES THE AFFIRMATION PERMITTED UNDER PARAGRAPH (1) OF THIS SUBSECTION SHALL DISCLOSE TO THE INSURED INDIVIDUAL WHO IS RECEIVING BENEFITS THAT ANY PERSON

THAT IF THE INDIVIDUAL KNOWINGLY AND WILLFULLY PROVIDES FALSE

INFORMATION OR KNOWINGLY AND WILLFULLY FAILS TO PROVIDE MATERIAL

INFORMATION IN CONNECTION WITH THE INSURED’S INDIVIDUAL’S ELIGIBILITY OR CONTINUED ELIGIBILITY FOR BENEFITS UNDER A WORKERS’ COMPENSATION INSURANCE POLICY OR A DISABILITY INSURANCE POLICY, THE INDIVIDUAL IS GUILTY OF A CRIME AND MAY BE SUBJECT TO A FINE AND IMPRISONMENT.


[(g)] (H) The Commissioner shall adopt regulations that establish minimum standards for antifraud plans required to be filed under this section.

[(h)] (I) It is a violation of this subtitle if the Commissioner finds that an authorized insurer has failed to: (1) file an antifraud plan; (2) file a revised antifraud plan after disapproval by the Commissioner of the initial antifraud plan; or (3) comply with the antifraud plan filed by the authorized insurer. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2009. Approved by the Governor, May 7, 2009.

Chapter 373


Baltimore City – Newly Constructed Dwelling Property Tax Credit – Modification and Reauthorization

FOR the purpose of authorizing the Mayor and City Council of Baltimore City to

establish certain maximum limits for a certain property tax credit; authorizing the Mayor and City Council of Baltimore City to establish certain application periods; authorizing the Mayor and City Council of Baltimore City to establish a one–time application amnesty period subject to certain restrictions; altering the termination date applicable to certain provisions; requiring the Mayor and City Council of Baltimore City to establish necessary and appropriate procedures to carry out the property tax credit; defining a certain term; and generally relating to the newly constructed dwelling property tax credit in Baltimore City.


Section 9–304(d) Annotated Code of Maryland (2007 Replacement Volume and 2008 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:


Article – Tax – Property

9–304. (d) (1) (i) In this subsection the following words have the meanings indicated. (ii) 1. “Newly constructed dwelling” means residential real property that has not been previously occupied since its construction and for which the building permit for construction was issued on or after October 1, 1994. 2. “Newly constructed dwelling” includes a “vacant dwelling” as defined in subsection (c)(1) of this section that has been rehabilitated in compliance with applicable local laws and regulations and has not been previously occupied since the rehabilitation. (iii) “Homeowner” has the meaning stated in § 9–105(a)(3) of this title.

(III) “OWNER” MEANS “HOMEOWNER” AS DEFINED IN § 9–105 OF THIS TITLE. (2) The Mayor and City Council of Baltimore City may grant, by law, a property tax credit under this subsection against the county property tax imposed on newly constructed dwellings that are owned by qualifying owners. (3) A property tax credit granted under this subsection may not exceed the amount of county property tax imposed on the real property, less the amount of any other credit applicable in that year, multiplied by: (i) 50% for the first taxable year in which the property qualifies for the tax credit; (ii) 40% for the second taxable year in which the property qualifies for the tax credit; (iii) 30% for the third taxable year in which the property qualifies for the tax credit; (iv) 20% for the fourth taxable year in which the property qualifies for the tax credit; (v) 10% for the fifth taxable year in which the property qualifies for the tax credit; and (vi) 0% for each taxable year thereafter.


(4) NOTWITHSTANDING THE CREDIT AMOUNT CALCULATED UNDER PARAGRAPH (3) OF THIS SUBSECTION, THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY ESTABLISH, BY LAW, MAXIMUM LIMITS ON THE CUMULATIVE PROPERTY TAX CREDIT ALLOWED UNDER THIS SUBSECTION OR ON

THE AMOUNT OF THE CREDIT ALLOWED FOR ANY YEAR.

[(4)] (5) Owners of newly constructed dwellings may qualify for the tax credit authorized by this subsection by: (i) purchasing a newly constructed dwelling; (ii) occupying the newly constructed dwelling as their principal residence; (iii) filing a State income tax return during the period of the tax credit as a resident of Baltimore City; and (iv) satisfying other requirements as may be provided by the Mayor and City Council of Baltimore City.

(6) (I) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY PROVIDE, BY LAW, FOR TWO APPLICATION PERIODS DURING WHICH HOMEOWNERS OWNERS CAN APPLY FOR THE PROPERTY TAX CREDIT UNDER

THIS SUBSECTION, ONE THAT IS BASED ON THE PURCHASE DATE OF THE DWELLING AND ONE THAT IS BASED ON THE DATE OF THE ASSESSMENT NOTICE.

(II) 1. THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY MAY PROVIDE, BY LAW, FOR A ONE–TIME AMNESTY PERIOD FOR HOMEOWNERS OWNERS WHO WERE PREVIOUSLY DENIED THE TAX CREDIT FOR

FAILING TO MEET THE APPLICATION DEADLINE.

2. THE AMNESTY PERIOD SHALL BEGIN AT THE TIME THE TAX CREDIT IS REAUTHORIZED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY AND SHALL END 60 DAYS THEREAFTER.

3. ONLY HOMEOWNERS OWNERS WHO WERE ELIGIBLE FOR THE TAX CREDIT ON OR AFTER JANUARY 1, 2005, MAY BE ELIGIBLE TO APPLY FOR THE CREDIT DURING THE AMNESTY PERIOD.

4. IF GRANTED, THE TAX CREDIT SHALL BE APPLIED AGAINST THE HOMEOWNER’S OWNER’S PROPERTY TAXES AS LONG AS THE HOMEOWNER OWNER REMAINS THE OWNER–OCCUPANT OF THE DWELLING FOR WHICH THE CREDIT IS RECEIVED.


(III) THE MAYOR AND CITY COUNCIL OF BALTIMORE CITY SHALL PROVIDE FOR THE ANY PROCEDURES NECESSARY AND APPROPRIATE

FOR IMPLEMENTING THE APPLICATION AND AMNESTY PERIODS.

[(5)] (7) The Mayor and City Council of Baltimore City may provide for ADDITIONAL procedures necessary and appropriate for the submission of an application for and the granting of a property tax credit under this subsection, including procedures for granting partial credits for eligibility for less than a full taxable year.

[(6)] (8) The estimated amount of all tax credits received by owners under this subsection in any fiscal year shall be reported by the Director of Finance of Baltimore City as a “tax expenditure” for that fiscal year and shall be included in the publication of the City’s budget for any subsequent fiscal year with the estimated or actual City property tax revenue for the applicable fiscal year.

[(7)] (9) (i) After June 30, [2009] 2014, additional owners of newly constructed dwellings may not be granted a credit under this subsection. (ii) This paragraph does not apply to an owner’s continuing receipt of a credit as allowed in paragraph (3) of this subsection, with respect to a property for which a tax credit under this subsection was received for a taxable year

ending on or before June 30, [2009] 2014. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1, 2009. Approved by the Governor, May 7, 2009.

Chapter 374


Harford County – Gaming FOR the purpose of requiring the Sheriff of Harford County to charge a certain fee for

a 50/50 license; increasing the maximum money prizes that may be awarded for certain games; authorizing certain organizations to conduct a game of 50/50 at a certain event if the organization acquires a license; and generally relating to gaming in Harford County.

BY repealing and reenacting, without amendments,


Article – Criminal Law Section 13–1501(a), (c), and (f), 13–1502(a), and 13–1503(b)

Annotated Code of Maryland (2002 Volume and 2008 Supplement) BY repealing and reenacting, with amendments, Article – Criminal Law

Section 13–1503(d), 13–1504(b), 13–1505(c), and 13–1508 Annotated Code of Maryland (2002 Volume and 2008 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article – Criminal Law 13–1501. (a) In this subtitle the following words have the meanings indicated. (c) “50/50” means a drawing from a finite number of chances in which the proceeds from the sale of chances are split evenly between the winner and the organization conducting the game. (f) “Sheriff” means the Sheriff of Harford County. 13–1502. (a) This subtitle applies only in Harford County. 13–1503. (b) The following organizations may obtain a license to conduct a gaming event: (1) a bona fide religious group that has conducted religious services at a fixed location in the county for at least 3 years before applying for a license; (2) a State–chartered organization authorized by a nationally chartered veterans organization; (3) a tax–supported volunteer fire company; or (4) a nonprofit organization that intends to raise money for an exclusively charitable, athletic, or educational purpose which is specifically described in the application for a license.


(d) The sheriff shall charge the following license fees: (1) $5 for a bingo license; (2) $10 for a paddle wheel license;

(3) $10 for a raffle license; [and]

(4) $10 FOR A 50/50 LICENSE; AND [(4)] (5) $15 for a members–only instant bingo license. 13–1504.

(b) A money prize for a bingo game may not exceed:

(1) [$50] $500; or (2) $1,000 for a jackpot. 13–1505. (c) A money prize for a members–only instant bingo game may not exceed

[$50] $500. 13–1508. (a) An organization listed in § 13–1503(b) of this subtitle may conduct a

game of 50/50 [without a license.

(b) A game of 50/50 may only be conducted]: (1) WITHOUT A 50/50 LICENSE, at a meeting of the organization; OR (2) WITH A 50/50 LICENSE, AT AN EVENT OTHER THAN A MEETING OF THE ORGANIZATION.

[(c)] (B) A money prize for a game of 50/50 may not exceed [$50] $500.

[(d)] (C) A minor may not participate in a game of 50/50. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 1, 2009. Approved by the Governor, May 7, 2009.


Chapter 375

(House Bill 161) AN ACT concerning Insurance – Company Action Level Events – Property and Casualty Insurers

FOR the purpose of specifying when a certain company action level event occurs for

property and casualty insurers; and generally relating to financial regulation of insurers.

BY repealing and reenacting, with amendments, Article – Insurance

Section 4–305(a) Annotated Code of Maryland (2003 Replacement Volume and 2008 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article – Insurance 4–305. (a) A company action level event occurs when: (1) an insurer files an RBC report that indicates that: (i) the insurer has total adjusted capital that is: 1. greater than or equal to its regulatory action level RBC; and

2. less than its company action level RBC; [or] (ii) in the case of a life insurer, the life insurer has total adjusted capital that: 1. is greater than or equal to its company action level RBC; 2. is less than the product of its authorized control level RBC and 2.5; and


3. has a negative trend; OR (III) IN THE CASE OF A PROPERTY AND CASUALTY INSURER, THE PROPERTY AND CASUALTY INSURER HAS TOTAL ADJUSTED CAPITAL THAT: 1. IS GREATER THAN OR EQUAL TO ITS COMPANY ACTION LEVEL RBC; 2. IS LESS THAN THE PRODUCT OF ITS AUTHORIZED CONTROL LEVEL RBC AND 3.0; AND 3. TRIGGERS THE TREND TEST CALCULATION INCLUDED IN THE PROPERTY AND CASUALTY RBC INSTRUCTIONS; (2) the Commissioner notifies an insurer of an adjusted RBC report that indicates an event under item (1) of this subsection; or (3) if an insurer requests a hearing to challenge an adjusted RBC report that indicates an event under item (1) of this subsection, the Commissioner notifies the insurer that the Commissioner, after a hearing, has rejected the insurer’s challenge. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2009. Approved by the Governor, May 7, 2009.

Chapter 376


Insurance – Notice of Premium Increase for Commercial and Workers’ Compensation Insurance

FOR the purpose of making certain notice requirements applicable to all premium

increases for policies of commercial insurance and policies of workers’ compensation insurance, with a certain exception; establishing certain methods for satisfying a certain notice requirement; clarifying language; providing for a delayed effective date; and generally relating to premium increases for commercial and workers’ compensation insurance policies.

BY repealing and reenacting, with amendments,


Article – Insurance Section 27–608

Annotated Code of Maryland (2006 Replacement Volume and 2008 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article – Insurance 27–608.

(a) (1) This section applies to:

(1) (I) policies of commercial insurance; and

(2) (II) policies of workers’ compensation insurance.

(2) THIS SECTION DOES NOT APPLY TO POLICIES ISSUED TO EXEMPT COMMERCIAL POLICYHOLDERS, AS DEFINED IN § 11–206(J) OF THIS ARTICLE. (b) Unless an insurer has given notice of its intention not to renew a policy

subject to this section, if the insurer seeks to increase the renewal policy premium [by 20% or more], the insurer shall send a notice to the named insured and insurance producer, if any, not less than 45 days prior to the renewal date of the policy.

(c) [A] SUBJECT TO SUBSECTION (D) OF THIS SECTION, A notice under this section shall include: (1) both the expiring policy premium and the renewal policy premium; and (2) the telephone number for the insurer or insurance producer, if any, together with a statement that the insured may call to request additional information about the premium increase.

(d) (1) If an INSURER SEEKS TO INCREASE THE RENEWAL POLICY

PREMIUM AND THE insurer’s rating methodology requires the insured to provide information to calculate the renewal policy premium, an insurer shall provide a reasonable estimate of the renewal policy premium if: (i) the insurer has requested the required information from the insured; and (ii) the insurer has not received the requested information.


(2) A reasonable estimate under this subsection shall be based upon the information available to the insurer at the time the notice is sent.

(e) [In determining the amount of a premium increase under this section, the insurer is not required to include premium resulting] THE REQUIREMENTS OF THIS SECTION DO NOT APPLY TO THE EXTENT THE PREMIUM INCREASE RESULTS from: (1) an increase in the units of exposure; (2) the application of an experience rating plan; (3) the application of a retrospective rating plan; (4) a change made by the insured that increases the insurer’s exposure; or (5) an audit of the insured. (f) A notice required by this section shall be sent by first–class mail and may be sent together with the renewal policy.

(G) AN INSURER SHALL BE CONSIDERED TO HAVE MET THE NOTICE REQUIREMENT OF THIS SECTION IF, NOT LESS THAN 45 DAYS BEFORE THE EFFECTIVE DATE OF THE RENEWAL POLICY THE INSURER HAS SENT:

(1) TO THE NAMED INSURED, A RENEWAL POLICY THAT INCLUDES THE RENEWAL POLICY PREMIUM;

(2) TO THE NAMED INSURED AND INSURANCE PRODUCER, IF ANY, A WRITTEN NOTICE OF RENEWAL OR CONTINUATION OF COVERAGE THAT

INCLUDES THE RENEWAL OR CONTINUATION PREMIUM; OR

(3) TO THE NAMED INSURED AND INSURANCE PRODUCER, IF ANY, A RENEWAL OFFER THAT INCLUDES A REASONABLE ESTIMATE OF THE RENEWAL

POLICY PREMIUM. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2009 January 1, 2010. Approved by the Governor, May 7, 2009.


Chapter 377


Motor Fuel – Dyed Diesel Fuel – Violations FOR the purpose of establishing certain violations involving the use of dyed diesel fuel

in the propulsion tanks of motor vehicles on the highways of the State; and generally relating to the regulation of dyed diesel fuel in the State.

BY repealing and reenacting, with amendments, Article – Business Regulation Section 10–323.2 Annotated Code of Maryland (2004 Replacement Volume and 2008 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article – Business Regulation 10–323.2. (a) (1) A notice stating “dyed diesel fuel, nontaxable use only” shall be: (i) provided by the terminal operator or distributor to any person that receives dyed diesel fuel at a terminal or distributor rack; (ii) provided by the seller of dyed diesel fuel to its buyer if the fuel is located outside the bulk transfer or terminal system and is not sold from a retail pump on which the notice required by this section has been posted in accordance with item (iii) of this paragraph; and (iii) posted by a seller on any retail pump where the seller sells dyed diesel fuel for use by the buyer of the dyed diesel fuel. (2) The notice required under paragraph (1)(i) or (ii) of this subsection shall be provided at the time of the removal or sale of the dyed diesel fuel and shall appear on shipping papers, bills of lading, and invoices accompanying the sale or removal of the dyed diesel fuel. (3) The Motor Fuel Tax Bureau may determine that compliance with a federal notice provision that is substantially similar to a notice requirement of this subsection satisfies that notice requirement of this subsection.


(b) (1) A person may not operate a motor vehicle on a highway in the State with fuel supply tanks containing dyed diesel fuel unless permitted to do so under a federal law or regulation relating to the use of dyed diesel fuel on the highways. (2) (i) A person may not sell or deliver dyed diesel fuel if the person knows or has reason to know that the dyed diesel fuel will be consumed for a prohibited on–highway use. (ii) A person who dispenses dyed diesel fuel from a retail pump that is not properly labeled with the notice required by subsection (a)(1) of this section, or who knowingly delivers dyed diesel fuel into the storage tank of such a pump, shall be presumed to know that the dyed diesel fuel will be consumed on the highway. (c) A person may not: (1) except as provided in subsection (b)(1) of this section, operate a motor vehicle on a highway in the State with dyed diesel fuel in the propulsion tank of the motor vehicle; (2) sell or deliver dyed diesel fuel from a retail pump that is not properly labeled as required under subsection (a) of this section; (3) sell or deliver dyed diesel fuel from a petroleum delivery vehicle into a propulsion tank of a motor vehicle; or (4) refuse to permit inspection of a propulsion tank in accordance with § 10–201(e) of this title.

(D) (1) A PERSON IS GUILTY OF A VIOLATION OF THIS SECTION IF THE PERSON, WHETHER AS A PRINCIPAL, AN AGENT, OR AN ACCESSORY, INTENTIONALLY: (I) COMMITS A VIOLATION OF THIS SECTION; (II) ATTEMPTS TO COMMIT A VIOLATION OF THIS SECTION; (III) CONSPIRES TO COMMIT A VIOLATION OF THIS SECTION; (IV) AIDS ANOTHER IN THE COMMISSION OF A VIOLATION OF THIS SECTION; OR (V) ABETS ANOTHER IN THE COMMISSION OF A VIOLATION OF THIS SECTION.


(2) A PERSON IS GUILTY OF A VIOLATION OF THIS SECTION IF THE PERSON INTENTIONALLY: (I) INDUCES ANOTHER TO COMMIT A VIOLATION OF THIS SECTION; (II) CAUSES ANOTHER TO COMMIT A VIOLATION OF THIS SECTION; (III) COERCES ANOTHER TO COMMIT A VIOLATION OF THIS SECTION; (IV) PERMITS ANOTHER TO COMMIT A VIOLATION OF THIS SECTION; OR (V) DIRECTS ANOTHER TO COMMIT A VIOLATION OF THIS SECTION.

[(d)](E) A person that violates any provisions of this section is guilty of a misdemeanor and on conviction is subject to a fine not exceeding $1,000 or imprisonment not exceeding 1 year or both.

[(e)](F) In addition to any other penalty provided by law, the Comptroller may assess against any person that violates any provision of this section dealing with the use, sale, transportation, or storage of dyed diesel fuel: (1) for the first violation, a fine of $1,000 or $10 per gallon of dyed diesel fuel involved in the violation, whichever amount is greater; and (2) for a second or subsequent violation, a fine equal to the amount of the penalty assessed under item (1) of this subsection for the first violation multiplied by the total number of violations. SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect October 1, 2009. Approved by the Governor, May 7, 2009.

Chapter 378



Automobile Liability and Homeowner’s Insurance – Surcharges Rating,

Retiering, and Removal or Reduction of Discounts FOR the purpose of establishing certain principles for rating homeowner’s insurance

under prior approval and competitive rating; prohibiting classification or maintenance of certain insureds under homeowner’s insurance in a classification that entails a higher premium based on certain claims made in certain periods; providing that the removal of, reduction of, or refusal to apply a discount under homeowner’s insurance is not a violation of certain provisions of this Act under certain circumstances; providing for the construction of certain provisions concerning certain discounts in homeowner’s insurance and automobile liability insurance; prohibiting an insurer, with respect to automobile liability insurance and homeowner’s insurance, from imposing a surcharge, retiering a risk, or removing or reducing a discount retiering a policy containing certain coverage under certain circumstances; providing for a delayed effective date; and generally relating to automobile liability insurance and homeowner’s insurance.

BY repealing and reenacting, with amendments, Article – Insurance

Section 27–501(d)(1) and (2) Annotated Code of Maryland (2006 Replacement Volume and 2008 Supplement) BY adding to Article – Insurance Section 11–213 and 11–315 Annotated Code of Maryland (2003 Replacement Volume and 2008 Supplement) BY repealing and reenacting, without amendments, Article – Insurance Section 11–215(a) and 11–318(a) Annotated Code of Maryland (2003 Replacement Volume and 2008 Supplement) BY repealing and reenacting, with amendments, Article – Insurance Section 11–215(b) and 11–318(b) Annotated Code of Maryland (2003 Replacement Volume and 2008 Supplement) BY repealing and reenacting, with amendments, Article – Insurance Section 19–507


Annotated Code of Maryland (2006 Replacement Volume and 2008 Supplement) SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, That the Laws of Maryland read as follows:

Article – Insurance 27–501. (d) (1) With respect to automobile liability insurance, an insurer may not:

(i) cancel, refuse to renew, [or] otherwise terminate coverage, IMPOSE A SURCHARGE, OR REMOVE OR REDUCE A DISCOUNT for an automobile insurance risk, OR RETIER AN AUTOMOBILE INSURANCE RISK, because of a claim, traffic violation, or traffic accident that occurred more than 3 years before the effective date of the policy or renewal; or (ii) refuse to underwrite an automobile insurance risk because of a claim, traffic violation, or traffic accident that occurred more than 3 years before the date of application. (2) With respect to homeowner’s insurance, an insurer may not:

(i) cancel, refuse to renew, [or] otherwise terminate coverage, IMPOSE A SURCHARGE, OR REMOVE OR REDUCE A DISCOUNT for a homeowner’s insurance risk, OR RETIER A HOMEOWNER’S INSURANCE RISK, because of a claim that occurred more than 3 years before the effective date of the policy or renewal; or (ii) refuse to underwrite a homeowner’s insurance risk because of a claim that occurred more than 3 years before the date of application.

11–213.

(A) ALL HOMEOWNER’S INSURANCE RATES SHALL BE MADE IN ACCORDANCE WITH THE PRINCIPLES SET FORTH IN THIS SECTION.

(B) (1) AN INSURER UNDER A HOMEOWNER’S INSURANCE POLICY MAY NOT CLASSIFY OR MAINTAIN AN INSURED FOR A PERIOD LONGER THAN 3 YEARS IN A CLASSIFICATION THAT ENTAILS A HIGHER PREMIUM BECAUSE OF A

SPECIFIC CLAIM.

(2) FOR THE PURPOSE OF DETERMINING WHETHER TO CLASSIFY AN INSURED IN A CLASSIFICATION THAT ENTAILS A HIGHER PREMIUM, AN INSURER MAY REVIEW ONLY A PERIOD NOT GREATER THAN 3 YEARS BEFORE:

Chapter 378 Martin O

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