Hospital deal OK’d; tech tax gets the ax

General Assembly also approves foreclosure rules and panhandling curb

Lawmakers also approved a framework for selling the Prince George’s hospital system, which comprises medical centers in Laurel, Bowie and Cheverly. The agreement calls for Prince George’s and the state to pay $12 million each in fiscal 2009 and fiscal 2010 to keep the three hospitals open. County Executive Jack B. Johnson (D) and the County Council still must agree on how much they are willing to subsidize the struggling hospital system when a private buyer takes over.

‘‘It’s a great first step,” said Sen. James C. Rosapepe (D-Dist. 21) of College Park. ‘‘It puts the hospital on the road to recovery. Like all roads, there are going to be some bumps and some intersections, but it’s a first step.”

Among legislation aimed at Maryland families was the passage of a bill that requires employers to allow people to use paid leave to care for a sick parent, spouse or child.

Lawmakers also passed bills designed to combat the increasing number of foreclosures while strengthening rules governing the mortgage industry.

The package — emergency legislation that took effect as soon as O’Malley signed it late last week — makes some predatory lending practices criminal acts, prevents prepayment penalties and extends the foreclosure process from 15 days to 150 days.

The General Assembly also approved the Kids First Act, making it easier for parents to enroll their uninsured children in the state’s Medicaid and Children’s Health Insurance Program.

It also extended the validity period of learner’s permits for young drivers from one year to two years.

The extension was part of legislation that repealed an exemption that allows 15-year-olds to drive without getting a learner’s permit if teens are taking lessons from qualified driver’s education instructors. The repeal requires all 15-year-olds obtain a learner’s permit before driving.

Repeal of the so-called tech tax was widely regarded as the most significant development of the session.

Business groups and tech companies banded together to kill the 6 percent sales tax on computer services passed during November’s special legislative session. The tax became the main focus of budget discussions during the last month of the 90-day legislative session.

On Saturday, the House of Delegates voted 93-44 to repeal the tax, following the Senate’s 30-17 vote two days earlier.

The repeal passed after lawmakers agreed to a plan pushed by O’Malley that replaced $200 million in revenues that was to be generated by the tax with a new income tax bracket of 6.25 percent on incomes above $1 million and by $100 million in cuts to transportation and other state programs. The new tax bracket applies to 0.2 percent of Maryland taxpayers and will expire after three years.

Prince George’s lawmakers passed several county-specific measures, including a bill to curb panhandling. The bill will become law on Oct. 1 if the governor signs it.

The bill targets the professional panhandlers, not those who are really needy, said Rosapepe, who sponsored the bill in the Senate.

Local officials will develop a card that has information on the law and offers help to the needy and homeless. ‘‘We’re trying to help people, not hurt people,” Rosapepe said.

The legislature also took steps to protect the environment and increase transportation funding while maintaining Maryland’s AAA bond rating, which allows the state to borrow money at lower rates.

That included freezing in-state tuition at state universities, providing a 2 percent cost-of-living increase for state employees, securing $333 million in school construction money statewide and providing $76 million for school systems where the cost of educating students is highest — including Prince George’s.

The repeal was the linchpin in a budget that includes $25 million to clean up the Chesapeake Bay and up to $20 million for stem cell research. The $1.5 billion capital budget includes $333 million for public school construction, hundreds of millions for higher education and $25 million in local projects.

In an eleventh-hour move, lawmakers approved an agreement between the state and Constellation Energy that will provide BG&E ratepayers with one-time refunds of $170 and relieves customers of about $1.5 billion in costs related to the eventual decommissioning of the Calvert Cliffs Nuclear Power Plant in Calvert County.

The action came after the Senate last week adopted an amendment seeking to re-regulate the state’s utilities, putting the settlement in limbo. It also clears one obstacle for the development of a third reactor at Calvert Cliffs.

Lawmakers left Annapolis confident that they would not be back for a special legislative session this year. The State House closes this month for a renovation that will take the rest of the year.

Staff Writers Janel Davis, Alan Brody and C. Benjamin Ford contributed to this report.