EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1059*
HOUSE BILL 1059
J5, J1, Q3 5lr2647
By: Delegates Fair, Acevero, Guzzone, Kerr, Simpson, Watson, and Woods
Introduced and read first time: February 5, 2025
Assigned to: Health and Government Operations and Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Health – Maryland Helping Everyone Afford Life–Saving Treatments and Health 2
Care (HEALTH) Fund and Income Tax Checkoff 3
FOR the purpose of establishing the Maryland Helping Everyone Afford Life–Saving 4
Treatments and Health Care (HEALTH) Fund as a special, nonlapsing fund to assist 5
Maryland Medical Assistance Program enrollees and insured individuals with health 6
care costs associated with services and benefits provided under State law that are 7
subject to federal restrictions; requiring the Comptroller to include a checkoff on 8
individual income tax return forms for voluntary contributions to the Fund; 9
requiring the Comptroller to collect and account for contributions made through the 10
checkoff system and to credit the proceeds to the Fund after deducting the amount 11
necessary to administer the checkoff; and generally relating to the Maryland Helping 12
Everyone Afford Life–Saving Treatments and Health Care (HEALTH) Fund and an 13
income tax checkoff for contributions to the Fund. 14
BY adding to 15
Article – Insurance 16
Section 31–107.3 17
Annotated Code of Maryland 18
(2017 Replacement Volume and 2024 Supplement) 19
BY adding to 20
Article – Tax – General 21
Section 2–113.2 and 10–804(m) 22
Annotated Code of Maryland 23
(2022 Replacement Volume and 2024 Supplement) 24
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 25
That the Laws of Maryland read as follows: 26
Article – Insurance 27 2 HOUSE BILL 1059
31–107.3. 1
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 2
INDICATED. 3
(2) “EXECUTIVE DIRECTOR” MEANS THE EXECUTIVE DIRECTOR OF 4
THE EXCHANGE. 5
(3) “FUND” MEANS THE MARYLAND HELPING EVERYONE AFFORD 6
LIFE–SAVING TREATMENTS AND HEALTH CARE (HEALTH) FUND ESTABLISHED 7
UNDER THIS SECTION . 8
(4) “INCOME TAX CHECKOFF S YSTEM” MEANS THE CHECKOFF 9
SYSTEM ESTABL ISHED UNDER § 2–112 OF THE TAX – GENERAL ARTICLE. 10
(B) (1) THERE IS A MARYLAND HELPING EVERYONE AFFORD 11
LIFE–SAVING TREATMENTS AND HEALTH CARE (HEALTH) FUND. 12
(2) THE PURPOSE OF THE FUND IS TO PROVIDE ASSISTANCE T O 13
MARYLAND MEDICAL ASSISTANCE PROGRAM ENROLLEES AND INDIVI DUALS WITH 14
HEALTH INSURANCE FOR HEALTH CARE COSTS AS SOCIATED WITH HEALTH CARE 15
SERVICES AND BENEFIT S PROVIDED UNDER STATE LAW THAT ARE SU BJECT TO 16
FEDERAL RESTRICTIONS , INCLUDING FUNDING RE STRICTIONS. 17
(3) THE EXECUTIVE DIRECTOR SHALL ADMINISTER THE FUND. 18
(4) (I) THE FUND IS A SPECIAL, NONLAPSING FUN D THAT IS NOT 19
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 20
(II) THE STATE TREASURER SHALL HOLD THE FUND 21
SEPARATELY, AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 22
(5) THE FUND CONSISTS OF : 23
(I) THE NET PROCEEDS FROM CO NTRIBUTIONS UNDER TH E 24
INCOME TAX CHECKOFF SYSTEM DISTRIBUTED TO THE FUND UNDER § 2–113.2(B)(3) 25
OF THE TAX – GENERAL ARTICLE; 26
(II) MONEY APPROPRIATED IN THE STATE BUDGET TO THE 27
FUND; AND 28
HOUSE BILL 1059 3
(III) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTED 1
FOR THE BENEFIT OF THE FUND. 2
(6) (I) THE FUND MAY BE USED ONLY FOR PROVIDING ASSISTANCE 3
TO ELIGIBLE INDIVIDU ALS WHO PROVIDE EVID ENCE OF A NEED FOR H EALTH CARE 4
ASSISTANCE FOR HEALT H CARE SERVICES AUTHORIZED UNDER STATE LAW THAT 5
HAVE BEEN IMPACTED B Y FEDERAL RESTRICTIO NS. 6
(II) THE FUND MAY NOT BE USED FOR ADMINISTRATIVE 7
EXPENSES. 8
(7) (I) THE STATE TREASURER SHALL INVES T THE MONEY OF THE 9
FUND IN THE SAME MANN ER AS OTHER STATE MONEY MAY BE IN VESTED. 10
(II) ANY INTEREST EARNINGS OF THE FUND SHALL BE 11
CREDITED TO THE GENERAL FUND OF THE STATE. 12
(8) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN 13
ACCORDANCE WITH THE STATE BUDGET . 14
(9) MONEY EXPENDED FROM T HE FUND FOR HEALTH CARE 15
ASSISTANCE IS SUPPLEMENTAL TO AND NOT INTENDED TO TAKE THE PLACE OF 16
FUNDING THAT WOULD O THERWISE BE APPROPRI ATED TO THE EXCHANGE FOR 17
INDIVIDUALS FOR HEAL TH CARE COSTS. 18
(C) (1) ON OR BEFORE AUGUST 31 EACH YEAR , THE EXECUTIVE 19
DIRECTOR SHALL SUBMIT A REPORT TO THE GENERAL ASSEMBLY, IN ACCORDANCE 20
WITH § 2–1257 OF THE STATE GOVERNMENT ARTICLE, ON THE ADMINISTRATIO N OF 21
THE FUND. 22
(2) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 23
SUBSECTION SHALL INC LUDE: 24
(I) THE GROSS AMOUNT OF DONATIONS TO THE FUND 25
THROUGH THE INCOME T AX CHECKOFF SYSTEM A ND OTHERWISE ; 26
(II) THE COSTS OF ADMINIST RATION BY THE COMPTROLLER OF 27
THE INCOME TAX CHECK OFF SYSTEM; AND 28
(III) A DETAILED ACCOUNTING OF THE USE OF THE FUND. 29
(D) THE EXCHANGE SHALL ADOPT REGULATIONS TO CARRY OUT THIS 30
SECTION. 31 4 HOUSE BILL 1059
Article – Tax – General 1
2–113.2. 2
(A) (1) THE COMPTROLLER SHALL INC LUDE ON THE INDIVIDU AL 3
INCOME TAX RETURN FO RM A CHECKOFF DESIGN ATED AS THE “MARYLAND 4
HELPING EVERYONE AFFORD LIFE–SAVING TREATMENTS AND HEALTH CARE 5
(HEALTH) FUND”. 6
(2) THE CHECKOFF SHALL ST ATE THAT: 7
(I) THE INDIVIDUAL , OR EACH SPOUSE IN TH E CASE OF A JOINT 8
RETURN, MAY CONTRIBUTE TO TH E MARYLAND HELPING EVERYONE AFFORD 9
LIFE–SAVING TREATMENTS AND HEALTH CARE (HEALTH) FUND THE AMOUNT 10
DESIGNATED BY THE IND IVIDUAL; AND 11
(II) 1. THE INDIVIDUAL SHALL DEDUCT THE AMOUNT OF THE 12
CONTRIBUTION FROM AN Y REFUND TO WHICH TH E INDIVIDUAL IS ENTI TLED; OR 13
2. IF THE INDIVIDUAL IS NOT ENTITLED TO A RE FUND, 14
THE INDIVIDUAL SHALL ADD THE AMOUNT OF THE CONTRIBUTION TO THE INCOME 15
TAX TO BE PAID WITH THE RETURN . 16
(3) THE COMPTROLLER SHALL INC LUDE, WITH THE INDIVIDUAL 17
INCOME TAX RETURN PA CKAGE, A DESCRIPTION OF THE PURPOSES FOR WHICH T HE 18
MARYLAND HELPING EVERYONE AFFORD LIFE–SAVING TREATMENTS AND 19
HEALTH CARE (HEALTH) FUND WAS ESTABLISHED AND THE PURPOSES FOR 20
WHICH THE FUND MAY BE USED . 21
(B) THE COMPTROLLER SHALL : 22
(1) COLLECT THE CHECKOFF CONTRIBUTIONS AND AC COUNT TO THE 23
STATE TREASURER FOR THE MONEY COLLEC TED; 24
(2) FROM THE CONTRIBUTIO NS COLLECTED, DISTRIBUTE THE 25
AMOUNT NECESSARY TO ADMINISTER THE CHECK OFF SYSTEM TO AN 26
ADMINISTRATIVE COST ACCOUNT; AND 27
(3) AFTER THE DISTRIBUTI ON UNDER ITEM (2) OF THIS SUBSECTION , 28
DISTRIBUTE THE REMAI NDER OF THE MONEY CO LLECTED UNDER ITEM (1) OF THIS 29
SUBSECTION TO THE MARYLAND HELPING EVERYONE AFFORD LIFE–SAVING 30
TREATMENTS AND HEALTH CARE (HEALTH) FUND ESTABLISHED UNDE R § 31
31–107.3 OF THE INSURANCE ARTICLE. 32 HOUSE BILL 1059 5
10–804. 1
(M) AN INDIVIDUAL MAY DES IGNATE A CONTRIBUTIO N TO THE MARYLAND 2
HELPING EVERYONE AFFORD LIFE–SAVING TREATMENTS AND HEALTH CARE 3
(HEALTH) FUND ESTABLISHED UNDE R § 31–107.3 OF THE INSURANCE ARTICLE 4
BY THE CHECKOFF SYST EM ON THE RETURN . 5
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 6
1, 2025, and shall be applicable to all taxable years beginning after December 31, 2024. 7