EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. Underlining indicates amendments to bill. Strike out indicates matter stricken from the bill by amendment or deleted from the law by amendment. *sb0848* SENATE BILL 848 J1, J5, J4 5lr2767 CF HB 930 By: Senator Guzzone Introduced and read first time: January 28, 2025 Assigned to: Finance and Budget and Taxation Committee Report: Favorable with amendments Senate action: Adopted Read second time: February 27, 2025 CHAPTER ______ AN ACT concerning 1 Public Health Abortion Grant Program – Establishment 2 FOR the purpose of establishing the Public Health Abortion Grant Program to provide 3 grants to improve access to abortion care clinical services for individuals in the State; 4 establishing the Public Health Abortion Grant Program Fund as a special, 5 nonlapsing fund to provide grants under the Public Health Abortion Grant Program; 6 requiring that certain premium funds collected by health insurance carriers be used 7 to provide certain coverage and to support improving access to abortion care clinical 8 services under certain circumstances; and generally relating to the Public Health 9 Abortion Grant Program and Fund. 10 BY adding to 11 Article – Insurance 12 Section 15–147 13 Annotated Code of Maryland 14 (2017 Replacement Volume and 2024 Supplement) 15 BY adding to 16 Article – Health – General 17 Section 13–5501 through 13–5503 to be under the new subtitle “Subtitle 55. Public 18 Health Abortion Grant Program” 19 Annotated Code of Maryland 20 (2023 Replacement Volume and 2024 Supplement) 21 BY repealing and reenacting, without amendments, 22 2 SENATE BILL 848 Article – State Finance and Procurement 1 Section 6–226(a)(2)(i) 2 Annotated Code of Maryland 3 (2021 Replacement Volume and 2024 Supplement) 4 BY repealing and reenacting, with amendments, 5 Article – State Finance and Procurement 6 Section 6–226(a)(2)(ii)204. and 205. 7 Annotated Code of Maryland 8 (2021 Replacement Volume and 2024 Supplement) 9 BY adding to 10 Article – State Finance and Procurement 11 Section 6–226(a)(2)(ii)206. 12 Annotated Code of Maryland 13 (2021 Replacement Volume and 2024 Supplement) 14 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MA RYLAND, 15 That the Laws of Maryland read as follows: 16 Article – Insurance 17 15–147. 18 (A) THIS SECTION APPLIES TO: 19 (1) INSURERS AND NONPROF IT HEALTH SERVICE PL ANS THAT 20 PROVIDE HOSPITAL , MEDICAL, OR SURGICAL BENEFITS TO INDIVIDUALS OR GR OUPS 21 ON AN EXPENSE –INCURRED BASIS UNDER HEALTH INSURANCE POL ICIES OR 22 CONTRACTS THAT ARE I SSUED OR DELIVERED I N THE STATE; AND 23 (2) HEALTH MAINTENANCE ORGANI ZATIONS THAT PROVIDE 24 HOSPITAL, MEDICAL, OR SURGICAL BENEFITS TO INDIVIDUALS OR GR OUPS UNDER 25 CONTRACTS THAT ARE I SSUED OR DELIVERED I N THE STATE. 26 (B) (1) ANY PREMIUM FUNDS COL LECTED BY AN ENTITY SUBJECT TO 27 THIS SECTION FOR ABO RTION COVERAGE IN ACCORDANCE WITH § 1303(B)(2)(B) 28 AND (C) OF THE FEDERAL PATIENT PROTECTION AND AFFORDABLE CARE ACT 29 SHALL BE USED: 30 (I) TO PROVIDE COVERAGE FOR ABORTION CARE CL INICAL 31 SERVICES FOR INSURED S OR ENROLLEES IN AC CORDANCE WITH § 15–857 OF THIS 32 TITLE; AND 33 SENATE BILL 848 3 (II) IN ACCORDANCE WITH P ARAGRAPH (2) OF THIS 1 SUBSECTION. 2 (2) IF AFTER THE 12–MONTH PERIOD FOLLOWI NG THE END OF A PLAN 3 YEAR THE AMOUNT OF T HE ENDING BALANCE OF A SEGREGATED ACCOUNT 4 ESTABLISHED FOR COVE RAGE OF ABORTION CAR E CLINICAL SERVICES EXCEEDS 5 DISBURSEMENTS , 90% OF THE ENDING BALANC E SHALL BE USED TO S UPPORT 6 COVERAGE OF ABORTION CARE CLINICAL SERVIC ES FOR WHICH THE USE OF 7 FEDERAL FUNDS IS PRO HIBITED. 8 (C) ON OR BEFORE MARCH 1 EACH YEAR, AN ENTITY SUBJECT TO THIS 9 SECTION SHALL SUBMIT TO THE COMMISSIONER AN ACCOU NTING OF RECEIPTS , 10 DISBURSEMENTS , ACCRUED INTEREST , AND THE YEAR –END BALANCE FOR 11 SEGREGATED ACCOUNTS ESTABLISHED BY THE E NTITY UNDER § 1303(B)(2)(B) AND 12 (C) OF THE FEDERAL PATIENT PROTECTION AND AFFORDABLE CARE ACT: 13 (1) ON A FORM APPROVED BY THE COMMISSIONER ; AND 14 (2) WITH ANY RELATED DOC UMENTATION REQUIRED BY THE 15 COMMISSIONER . 16 (D) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 17 COMMISSIONER SHALL OR DER THE TRANSFER OF FUNDS FROM EACH ENTI TY’S 18 SEGREGATED ACCOUNT E STABLISHED BY THE ENTITY FO R COVERAGE OF ABORTI ON 19 CARE CLINICAL SERVIC ES TO THE PUBLIC HEALTH ABORTION GRANT PROGRAM 20 FUND ESTABLISHED UNDE R § 13–5503 OF THE HEALTH – GENERAL ARTICLE IN THE 21 FOLLOWING AMOUNTS : 22 (I) ON OR BEFORE SEPTEMBER 1, 2025, 90% OF THE AMOU NT 23 OF THE ENDING BALANC E OF THE SEGREGATED ACCOUNT THAT EXCEEDS 24 DISBURSEMENTS FOR EA CH OF PLAN YEARS 2014 THROUGH 2023; AND 25 (II) ON OR BEFORE JULY 1 EACH YEAR, BEGINNING IN 2026, 26 90% OF THE AMOUNT OF THE ENDING BALANCE OF A SEGREGATED ACCOUNT T HAT 27 EXCEEDS DISBURSEMENTS AF TER THE 15–MONTH PERIOD FOLLOWI NG THE END OF 28 A PLAN YEAR. 29 (2) (I) THE AMOUNT ORDERED TO BE TRANSFERRED UNDER 30 PARAGRAPH (1)(I) OF THIS SUBSECTION S HALL INCLUDE THE AMO UNT OF INTEREST 31 ACCRUED TO THE SEGRE GATED ACCOUNT AS OF DECEMBER 31, 2025 2024. 32 (II) THE AMOUNT ORDERED TO BE TRANSFERRED UNDER 33 PARAGRAPH (1)(II) OF THIS SUBSECTION S HALL INCLUDE THE AMO UNT OF 34 4 SENATE BILL 848 INTEREST ACCRUED TO THE SEGREGATED ACCOU NT AS OF DECEMBER 31 OF THE 1 IMMEDIATELY PRECEDIN G CALENDAR YEAR . 2 (E) A PARTY AGGRIEVED BY AN ORDE R OF THE COMMISSIONER UNDER TH IS 3 SECTION HAS THE RIGH T TO A HEARING AND T HE RIGHT TO APPEAL F ROM THE 4 ORDER OF THE COMMISSIONER UNDER §§ 2–210 THROUGH 2–215 OF THIS ARTICLE. 5 Article – Health – General 6 SUBTITLE 55. PUBLIC HEALTH ABORTION GRANT PROGRAM. 7 13–5501. 8 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 9 INDICATED. 10 (B) “ELIGIBLE ORGANIZATION ” MEANS AN ORGANIZATIO N THAT: 11 (1) (I) 1. IS OWNED BY OR EMPLOY S HEALTH CARE 12 PRACTITIONERS WHO AR E AUTHORIZED TO PRAC TICE UNDER THE HEALTH 13 OCCUPATIONS ARTICLE; AND 14 2. PROVIDES EQUITABLE AC CESS TO ABORTION CAR E 15 CLINICAL SERVICES FO R INDIVIDUALS WITHOU T SUFFICIENT RESOURC ES; OR 16 (II) ADMINISTERS A FUND TO PROVIDE EQUITABLE AC CESS TO 17 ABORTION CARE CLINIC AL SERVICES FOR INDI VIDUALS WITHOUT SUFFIC IENT 18 RESOURCES; 19 (2) IS IN GOOD STANDING I N THE STATE OR JURIS DICTION IN WHICH 20 THE ORGANIZATION IS REGISTERED OR INCORP ORATED; AND 21 (3) HAS POLICIES THAT DO NOT RESTRICT ACCESS TO ABORTION 22 CARE AND ARE CONSIST ENT WITH TITLE 20, SUBTITLE 2 OF THIS ARTICLE. 23 (C) “FUND” MEANS THE PUBLIC HEALTH ABORTION GRANT PROGRAM 24 FUND. 25 (D) “INDIVIDUALS WITHOUT S UFFICIENT RESOURCES ” MEANS INDIVIDUALS 26 WHO ARE: 27 (1) UNINSURED; 28 (2) UNDERINSURED , WITHOUT SUFFICIENT A BORTION COVERAGE ; 29 OR 30 SENATE BILL 848 5 (3) UNABLE TO USE THEIR I NSURANCE DUE TO THE RISKS POSED BY 1 COMMUNICATION FROM I NSURANCE CARRIERS RE GARDING COVERAGE . 2 (E) “PROGRAM” MEANS THE PUBLIC HEALTH ABORTION GRANT 3 PROGRAM. 4 13–5502. 5 (A) THERE IS A PUBLIC HEALTH ABORTION GRANT PROGRAM. 6 (B) THE PURPOSE OF THE PROGRAM IS TO PROVIDE GRANTS TO IMPROVE 7 ACCESS TO ABORTION C ARE CLINICAL SERVICE S FOR INDIVIDUALS IN THE STATE. 8 (C) (1) THE SECRETARY SHALL PROVI DE OPERATING GRANTS TO 9 ELIGIBLE ORGANIZATIO NS TO SUPPORT EQUITA BLE ACCESS TO ABORTI ON CARE 10 CLINICAL SERVICES ACROS S THE STATE. 11 (2) GRANT FUNDS PROVIDED UNDER THE PROGRAM SHALL BE USED 12 TO SUPPORT ABORTION CARE CLINICAL SERVIC ES FOR WHICH FEDERAL FUNDING 13 IS PROHIBITED FOR IN DIVIDUALS WITHOUT SU FFICIENT RESOURCES , INCLUDING 14 TO COVER REASONABLE ADMINISTRATIVE COSTS OF MANAGING SERVICES 15 PROVIDED UNDER THE G RANT. 16 (D) THE DEPARTMENT SHALL AWAR D AT LEAST 90% OF THE FUNDS 17 APPROPRIATED FOR THE PROGRAM AS GRANTS TO ELIGIBLE ORGANIZATIO NS. 18 (E) THE DEPARTMENT MAY NOT : 19 (1) RELEASE, PUBLISH, OR OTHERWIS E DISCLOSE ANY IDENT IFYING 20 INFORMATION FOR : 21 (I) THE STAFF OF AN ELIGI BLE ORGANIZATION THA T APPLIES 22 FOR OR RECEIVES A GR ANT OR REIMBURSEMENT FROM GRANT FUNDING U NDER 23 THE PROGRAM; OR 24 (II) AN INDIVIDUAL HEALTH CARE PRACTITIONER OR STAFF 25 WHO PROVIDES ABORTION CARE CLINIC AL SERVICES FOR AN E LIGIBLE 26 ORGANIZATION THAT RE CEIVES A GRANT OR RE IMBURSEMENT FROM GRA NT 27 FUNDING UNDER THE PROGRAM; OR 28 (2) COLLECT IDENTIFYING I NFORMATION FOR INDIV IDUALS WHO 29 REQUEST OR OBTAIN SU PPORT FOR ABORTION C ARE CLINICAL SER VICES FROM AN 30 ELIGIBLE ORGANIZATIO N AWARDED A GRANT UN DER THE PROGRAM. 31 6 SENATE BILL 848 (F) THE DEPARTMENT MAY NOT : 1 (1) RESTRICT THE USE OF F UNDS GRANTED UNDER T HE PROGRAM IN 2 A MANNER THAT IS INC ONSISTENT WITH TITLE 20, SUBTITLE 2 OF THIS ARTICLE; OR 3 (2) ALLOW AN ELIGIBLE ORGANIZATIO N THAT IS AWARDED A GRANT 4 UNDER THE PROGRAM TO RESTRICT T HE USE OF FUNDS IN A MANNER THAT IS 5 INCONSISTENT WITH TITLE 20, SUBTITLE 2 OF THIS ARTICLE. 6 (G) THE DEPARTMENT SHALL DEVE LOP STANDARDS FOR TH E GRANTS TO 7 ENSURE FUNDS ARE BEI NG USED IN ACCORDANCE WI TH THE REQUIREMENTS OF 8 THIS SECTION. 9 13–5503. 10 (A) THERE IS A PUBLIC HEALTH ABORTION GRANT PROGRAM FUND. 11 (B) THE PURPOSE OF THE FUND IS TO PROVIDE GR ANTS UNDER THE 12 PROGRAM. 13 (C) THE SECRETARY SHALL ADMIN ISTER THE FUND. 14 (D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 15 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 16 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 17 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 18 (E) THE FUND CONSISTS OF : 19 (1) MONEY TRANSFERRED TO THE FUND UNDER § 15–147 OF THE 20 INSURANCE ARTICLE; 21 (2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 22 (3) INTEREST EARNINGS OF THE FUND; AND 23 (4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 24 THE BENEFIT OF THE FUND. 25 (F) THE FUND MAY BE USED ONLY FOR THE PROGRAM. 26 (G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 27 IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 28 SENATE BILL 848 7 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 1 THE FUND. 2 (H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 3 WITH THE STATE BUDGET . 4 (I) ON OR BEFORE OCTOBER 1, 2025, THE GOVERNOR SHALL ALLOCA TE TO 5 THE PROGRAM BY BUDGET AME NDMENT $2,000,000 IN FUNDING AS REQUIR ED TO 6 BE TRANSFERRED TO TH E FUND UNDER § 15–147(D)(1)(I) OF THE INSURANCE 7 ARTICLE. 8 (J) BEGINNING IN FISCAL Y EAR 2027, THE GOVERNOR SHALL INCLUD E IN 9 THE ANNUAL BUDGET BI LL AN APPROPRIATION FOR THE FUND THAT IS AT LEAST 10 EQUAL TO THE FUNDING REQUIRED TO BE TRANS FERRED TO THE FUND UNDER § 11 15–147(D)(1)(II) OF THE INSURANCE ARTICLE. 12 Article – State Finance and Procurement 13 6–226. 14 (a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 15 through 2028. 16 2. Notwithstanding any other provision of law, and unless 17 inconsistent with a federal law, grant agreement, or other federal requirement or with the 18 terms of a gift or settlement agreement, net interest on all State money allocated by the 19 State Treasurer under this section to special funds or accounts, and otherwise entitled to 20 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 21 Fund of the State. 22 (ii) The provisions of subparagraph (i) of this paragraph do not apply 23 to the following funds: 24 204. the Victims of Domestic Violence Program Grant Fund; 25 [and] 26 205. the Proposed Programs Collaborative Grant Fund; AND 27 206. THE PUBLIC HEALTH ABORTION GRANT PROGRAM 28 FUND. 29 SECTION 2. AND BE IT FURTHER ENACTED, That: 30 (a) If, on or before June 30, 2031, the Centers for Medicare and Medicaid Services 31 advises the Maryland Insurance Administration that the provisions of Section 1 of this Act 32 8 SENATE BILL 848 violate § 1303 of the federal Patient Protection and Affordable Care Act, Section 1 of this 1 Act, with no further action required by the General Assembly, shall be abrogated and of no 2 further force and effect. 3 (b) The Maryland Insurance Administration shall notify the Department of 4 Legislative Services within 5 days after receiving notice that Section 1 of this Act violates 5 § 1303 of the federal Patient Protection and Affordable Care Act. 6 SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 7 1, 2025. 8 Approved: ________________________________________________________________________________ Governor. ________________________________________________________________________________ President of the Senate. ________________________________________________________________________________ Speaker of the House of Delegates.