Following is the End of Session Report for the 2008 Session of the Maryland General Assembly. This report provides a comprehensive analysis of the impacts of this session’s legislative actions as they relate specifically to the Department of Natural Resources, and as pertinent items relate to State agencies across the board. This report includes pertinent details on the operating and capital budgets (SB90 and SB150 respectively – click on these for detailed budget information), excerpts from the Joint Chairmen’s Report (JCR), summaries of bills that passed which have relevance to DNR (many based on information provided in the 90 Day Report), a listing of bills that did not pass, and a section on legislation that was vetoed by the Governor. For more information on legislation and issues related to the General Assembly, visit their website at www.mlis.state.md.us.

Table of Contents

• Operating Budget Highlights
• Capital Budget Highlights
• Administration Bills
• DNR Departmental Bills
• Natural Resources/Environment/Agriculture
• State/Local Government
• Items Requiring DNR Action
• Failed Bills
• Vetoed Bills

The State’s total FY09 operating budget (SB90), as enacted during the 2008 General Assembly session, amounts to about $31.2 billion in appropriations. This represents an increase of about four percent over the FY08 level. This budget does include a two percent general salary increase and varying employee increments, although there is also a one percent increase in employee contributions for the retirement enhancement that was passed during the 2006 session (HB1737 of 2006). The match for those participating in individual deferred compensation plans are fully funded at $600. This budget funds the Chesapeake and Atlantic Coastal Bays 2010 Trust Fund and Nonpoint Source Fund at $25 million for FY09, though it was authorized at up to $50 million during the 2007 special session when it was created. There were also two supplemental budgets introduced by the Governor – Supplemental Budget No. 1 and Supplemental Budget No. 2, totaling about $243.5 million for fiscal years 2008 and 2009. Many of the appropriations in the supplemental budgets were deficiency appropriations for FY08, adhering to prior budget bill language that expressed legislative intent that additional funding is provided this way rather than by budget amendment to reflect a more accurate budget.

The capital budget for the State totals $3.257 billion for FY09. Of the total amount, $937.6 million is funded with general obligation (GO) bonds authorized in the Maryland Consolidated Capital Bond Loan of 2008 (SB150), about $431.3 million is funded on a pay-as-you-go (PAYGO) basis in the operating budget (SB90), and $118 million is funded with revenue bonds to be issued by the Maryland Department of the Environment (MDE) to support State and local efforts to upgrade wastewater treatment plants.

DNR’s FY09 operating budget allowance was roughly $195 million, an approximate $9 million (4.9%) increase from our FY08 working appropriation. The Department’s General Fund allocation has decreased while Special Funds have increased. This budget reflects legislation and action from the 2007 special session that allocated the greater of 20% or $21 million of a part of the transfer tax for the Maryland Park Service in place of MPS General Funds, resulting in a net gain of over four million for State parks operations. There was also a match of $750 thousand in General Funds to complement certain fishing license fee increases as a result of SB1012 of the 2007 session for Fisheries Service.

Our FY09 capital budget allowance was about $104 million, including both GO bonds and PAYGO funds. Our capital budget sustained two program modifications. Rural Legacy’s five million in GO Bonds was redirected to certain capital development projects on DNR properties ($13.5 million in PAYGO funds for Rural Legacy was not modified). Additionally, the Oyster Restoration Program typically funded at $3 million in GO Bond allowance was modified to cover Habitat Restoration and Aquaculture Development. Community Parks and Playgrounds was funded at the full $5 million level in GO Bond allowance, in addition to this program being codified this year for municipal corporations and Baltimore City (SB1000 /HB1604). The full amount of estimated transfer tax revenue ($109.4 million) has been allocated according to the statutory formula for land conservation programs including Program Open Space, although transfer tax revenues are down from prior years reflecting a decrease in real estate transactions.

Under the Maryland Constitution, the Governor has the option of signing, vetoing, or letting legislation become law without his signature. The Constitution specifies that bills must be presented to the Governor by the 20th day after adjournment (April 27, 2008); and that the Governor must act on these bills by the 30th day after presentment (May 27, 2008). Each bill not vetoed becomes law on the effective date specified in the bill. Emergency bills, should they pass by the necessary 3/5 majority of both chambers, become effective immediately once they are given gubernatorial approval; otherwise June 1st is the earliest date for bills to take effect. Most budget, tax, and revenue bills take effect July 1st. October 1st is the normal effective date for most bills.

This report takes budget items and legislation and divides them into categories. Budget items are split between operating and capital, including excerpts from the JCR. The JCR excerpts begin with the DNR items, and are then presented in order of budget code, which is alphabetical (DNR’s budget code begins with the letter “K”).

Legislation is divided among four categories: 1) Administration bills – bills that were drafted and introduced on behalf of the Governor; 2) DNR departmental bills – bills that were drafted and introduced on behalf of the Department; 3) Natural Resources/Environment/Agriculture bills – these are separate from our departmental bills, but privately sponsored bills whose subject relates to natural resources, the environment, and agriculture; and 4) State/Local Government bills – this includes legislation pertaining to State agencies, local governments, personnel, and procurement. There is also a section on Items Requiring DNR Action, which includes both legislation and budget directives delineating DNR participation with Task Forces and Commissions, any staffing responsibilities, and any required reports and regulations. The Failed Bills section is a list of bills that did not pass this session. The final section, Vetoed Bills, is a listing of bills that have been vetoed by the Governor and will not become law. The bills throughout this report are in order of Senate bill number and any corresponding crossfile first, then House bill number.

The 2008 Session saw the introduction of 2,641 pieces of legislation, with about 747 actually passing (roughly 28%). DNR introduced six pieces of departmental legislation, in addition to being involved in several pieces of Administration legislation relating to the Critical Areas and the 2010 Trust Fund. DNR’s legislative office tracked nearly 175 bills during the 2008 session.

It is my hope that you find this 2008 End of Session Report both useful and helpful. Should you have any questions, please do not hesitate to contact the legislative office at (410) 260-8116. I would like to thank the many individuals within DNR who provided able assistance and expertise. The support and cooperation of the Secretary, Deputy Secretary, Assistant Secretaries, Office of the Attorney General, Unit Directors, and in particular, the legislative and fiscal contacts within the Units all help to successfully further the DNR agenda. I would especially like to thank Frank Oslislo and Vicky Overbeck for their dedication and tireless work on behalf of DNR.

Emily H. Wilson

Director of Government Relations