New Maryland Laws Take Effect For 2020: Minimum Wage, Pet Stores

MARYLAND — The minimum wage in Maryland increased Wednesday, one of several state laws that took effect with the start of the new year. Other changes impact everything from car rentals to beer franchisers to organ donors.

Here's a look at some of the new Maryland laws, effective Jan. 1, 2020:

Minimum Wage Is $11

The minimum wage increased and is now $11.

Before Wednesday, the minimum wage had been $10.10 in Maryland since 2018. (Montgomery and Prince George's counties, however, have their own higher minimum-wage standards.)

During the 2019 Maryland General Assembly, state lawmakers voted to pass the bill supporting the increase, then had to override a veto from Gov. Larry Hogan to push it through into law.

Over the next five years, minimum wage in Maryland will increase until it reaches $15 in 2025.

For employers with at least 15 employees, this is the increase schedule:

• Jan. 1, 2020 — $11
• Jan. 1, 2021 — $11.75
• Jan. 1, 2022 — $12.50
• Jan. 1, 2023 — $13.25
• Jan. 1, 2024 — $14
• Jan. 1, 2025 — $15

For employers with 14 or fewer employees, this is the schedule:

• Jan. 1, 2020 — $11
• Jan. 1, 2021 — $11.60
• Jan. 1, 2022 — $12.20
• Jan. 1, 2023 — $12.80
• Jan. 1, 2024 — $13.40
• Jan. 1, 2025 — $14
• Jan. 1, 2026 — $14.60
• July 1, 2026 — $15

Maryland is one of six states that passed laws to raise the minimum wage to $15 an hour over time: California, Illinois, Massachusetts, New Jersey and New York are the others, according to the Economic Policy Institute. The D.C. minimum wage will rise to $15 this July.

Rape Kit Regulations

Law enforcement agencies must send rape kits to a forensic laboratory for analysis within 30 days of collection unless there is clear evidence disproving the allegation of assault; the victim does not consent to having the test sent for analysis; the facts alleged could not be interpreted to violate criminal laws such as assault, reckless endangerment, prostitution or sex offenses and related crimes; or the suspect already pleaded guilty to the offense related to the sexual assault evidence collection kit and already has a profile in the FBI's DNA database. Maryland's attorney general has addressed some frequently asked questions about the new law.

Also included in the law is this requirement: a victim who wants to remain anonymous and not file a complaint must be informed of the ability to file a complaint later.

In addition, law enforcement officials must use certified sexual assault crisis programs or qualified community-based organizations to provide support services for sexual assault survivors.

Beer Business

A beer franchiser can provide notice of plans to terminate a beer franchise agreement with a franchisee within 45 days rather than 180 as previously required. The new law also outlines arbitration proceedings for franchisers.

Car Rentals

Those renting vehicles or taking out loaner vehicles during car repairs or breakdowns are the primary ones responsible for claims. The owners of rental vehicles must notify the renters of their responsibility for insurance. The law applies to claims originating on or after Jan. 1, 2020. If the renter's coverage has lapsed, then the owner of the rental vehicle will file the claim.

Cats And Dogs: No Pet Store Sales

Pet stores cannot sell, transfer or dispose of cats or dogs, according to a law regulating retail pet stores. Instead, they are to work with animal welfare organizations to feature those groups' adoptable animals. This was initially dubbed the "No More Puppy Mill" bill in 2018 when it was introduced.

Several pet sellers — Just Puppies (Rockville and Towson), Charm City Puppies (Columbia), Jodie Hancock (breeder) and Sobrad LLC — filed suit in August 2019 against the Maryland attorney general and committees in the Maryland General Assembly challenging the constitutionality of the law. A hearing to discuss whether the law can be stayed pending the adjudication of the matter will be held Jan. 9 in U.S. District Court in Baltimore.

Compensation For Criminal Injuries

As part of the new law around compensation for criminal injuries, people may file claims online as well as previously accepted methods such as filing in person or by mail. Mental health treatment compensation has increased from $5,000 to $10,000 for each claimant or $20,000 per incident. Emergency awards have increased from $2,000 to $5,000.

The providers of funerals or death-related services may now file a claim from the Criminal Injuries Compensation Board; previously, health care providers could but no other entity was specified. Claims have increased to $7,500 (rather than the previous $5,000) for funeral expenses.

The time period to file a claim for compensation has been altered. Previously, it was within three years of the crime or delinquent act. Now it is within three years of when the crime was discovered or when the claimant should have discovered an attempt to reverse a conviction, sentence or adjudication. The time frame for filing claims differs in child abuse as well as sexual assault cases.

Health care providers and funeral service providers are prohibited from trying to collect debts from claimants under certain circumstances.

No Discriminating Against Organ Donors

Organ donors cannot be discriminated against solely on the basis of being organ donors, meaning insurers cannot prohibit an applicant or individual from donating all or part of an organ as a condition of insurance; they can't tack on fees for organ donors on that basis; and they may not refuse to renew or underwrite a policy only because someone is an organ donor. This applies to life insurance, disability insurance and long–term care insurance policies issued, delivered or renewed in Maryland on or after Jan. 1, 2020.

Those who have worked for a place that has at least 15 employees and been employed there for at least 12 months are entitled to up to 60 business days of unpaid organ donation leave in a 12-month period and up to 30 business days for bone marrow donations as long as the procedure is deemed medically necessary by a physician.

Electric Bikes Need Labels

Manufacturers and distributors of electric bicycles in Maryland must put standard labels on their products in a prominent place showing the top assisted speed, motor wattage and classification.

Insurance Regulations

On the first page of an application to insure the life of a minor, life insurers must provide a disclosure statement akin to this: "A person who feloniously and intentionally kills, conspires to kill, or procures the killing of the insured and who is a named beneficiary of a life insurance policy on the insured is not entitled to a benefit under the policy." This applies to life insurance policies on the life of a minor issued or delivered in Maryland on or after Jan. 1, 2020.

Health insurers addressing mental health and substance use disorders must use the American Society of Addiction Medicine's standards to determine medical necessity and level of care for addictive, substance-related and co-occurring conditions, applying that to policies, contracts, and health benefit plans issued, delivered or renewed in Maryland on or after Jan. 1, 2020.

The length of time an insurer is required to provide coverage for a single dispensing of a supply of prescription contraceptives is extended from six months to 12 moths.

Regarding pre-authorization for prescriptions, certain insurers, health service plans, and health maintenance organizations will not require re-authorization for a repeat prescription for a chronic condition for one year or for the standard course of treatment, whichever is less; and a database for prior authorizations filed electronically will be required.

The Senior Prescription Drug Assistance Program is extended until Dec. 31, 2024; it had been slated to end Dec. 31, 2019.

At least 15 days before their license is set to expire, public adjusters and insurance producers must submit proof to the Maryland Insurance Commissioner of continuing education. The new law comes after licenses were expiring in some cases the day after coursework was completed, and it is intended to minimize the resulting administrative burden.

Homeowner Protections

A new law establishes a state tax sale ombudsman in the State Department of Assessments and Taxation who will assist homeowners with delinquent taxes. Homeowners who are low-income, at least 65 years old or disabled must be provided with information that is clear and concise if their properties are subject to tax sales.

A homeowner's insurer may not increase the premium of a surviving spouse based on the change in marital status of the policyholder.

This article has been updated.