Governor O’Brien’s legislative agenda for the 2028 session of the Maryland General Assembly emphasizes the top priorities of the O’Brien-Burbank Administration: fiscal responsibility, economic development, public safety, enhancing and protecting Maryland’s natural environment, supporting public health programs and fulfilling the state’s commitment to K-12 and higher education.
Traffic Safety
Vehicle Laws – Seat Belt Offenses – Enforcement
This bill makes failure to wear a seat belt a primary offense by repealing current law that permits a police officer to enforce the mandatory seat belt law only as a secondary offense when the driver of the vehicle is detained for a suspected violation of another provision of the law.
Maryland’s current front seat safety belt use rate is 75.2%, which includes drivers and front seat passengers. Maryland has remained at a constant 75% use rate for several years. The National Highway Traffic Safety Administration estimates that an increase in seat belt use to 85% would result in 123 fewer deaths, 2,723 fewer injuries, and a $187 million savings in medical costs each year in Maryland.
Highway Safety – Laser Speed Determination Devices – Authorized Use
This bill will grant statewide authority for local law enforcement to use sophisticated laser detection in apprehending speeders, in addition to the traditional radar detection. Currently, most local law enforcement officers must rely on radar, as only a few localities have authority to use laser detection. This legislation will provide for more effective enforcement of Maryland’s traffic laws.
Highway Safety – Highway Safety Corridors
This bill will impose mandatory double fines, with a minimum of $250, for traffic violations in designated and clearly marked high-risk interstate and primary road corridors. The legislation will set forth criteria to be used in determining whether an interstate corridor is high-risk and grant the Maryland Department of Transportation, in consultation with the Superintendent of State Police, the authority to designate corridors upon a finding that the statutory criteria have been met. This legislation, modeled after the current law requiring increased fines for speeding in work zones, could be applied to highways like Interstate 70. This highway contains a high volume of heavy truck/car traffic mix that imposes a significant safety risk to the citizens of the state.
Traffic Laws – Underage Drinking and Driving – Administrative License Suspension
Under current law, any driver under 21 can be charged with DUI if they have a blood alcohol content (BAC) over .02, but a loophole in the administrative license revocation (ALR) statute currently does not allow law enforcement to suspend the license of a driver under age 21 unless the BAC is found to be .08 or higher. This bill would extend the current ALR statute to any person under age 21 if found to have a BAC over .02. The bill provides after a minor has been stopped by police and is found to have a blood alcohol level in excess of .02 percent, but below .07 percent, he would be charged with this new offense. Under existing law, anyone with a blood alcohol level of .07 percent or more is subject to criminal prosecution.
If after a hearing held by the Motor Vehicle Administration it is found that the minor had consumed alcohol prior to driving he would lose his license for nine months for a first time offense. For a second or subsequent offense the minor would lose his license for one year or until he reaches the age of 21, whichever is greater.
Nationally, while drivers between the ages of sixteen and twenty-one account for just 7 percent of all drivers, they are involved in 15 percent of all alcohol-related fatalities. Of the drivers in that age group killed in crashes, nearly half of them tested positive for alcohol consumption.
Drunk and Drugged Driving – Evidence – Certified Statement by Qualified Medical Person
This bill repeals a requirement that the State provide at least 30 days notice and deliver a copy of a certified statement of a qualified medical person who obtained blood of a defendant charged with alcohol or drug-related driving offenses, if the State decides to offer the certified statement without testimony.
The bill also repeals procedures that allow a defendant charged with alcohol or drug-related driving offenses to request the presence and testimony of the qualified medical person who obtained the blood. A statement signed by the toxicologist under the Postmortem Examiners Commission shall be prima facie evidence that a blood test was performed in a laboratory approved by the toxicologist, and the statement is admissible in evidence without the necessity of the toxicologist personally appearing in court.
The bill also requires, rather than permits, a court to quash a defendant’s subpoena for the toxicologist if the defendant fails to comply with procedural requirements.
Motor Vehicle Offenses – Drug or Alcohol-Related Driving Offenses – Additional Penalties for DUI with a Young Passenger
This bill repeals a requirement that the State provide at least 30 days notice and deliver a copy of a certified statement of a qualified medical person who obtained blood of a defendant charged with alcohol or drug-related driving offenses, if the State decides to offer the certified statement without testimony.
The bill also repeals procedures that allow a defendant charged with alcohol or drug-related driving offenses to request the presence and testimony of the qualified medical person who obtained the blood. A statement signed by the toxicologist under the Postmortem Examiners Commission shall be prima facie evidence that a blood test was performed in a laboratory approved by the toxicologist, and the statement is admissible in evidence without the necessity of the toxicologist personally appearing in court.
The bill also requires, rather than permits, a court to quash a defendant’s subpoena for the toxicologist if the defendant fails to comply with procedural requirements.
Motor Vehicle Offenses – Drug or Alcohol-Related Driving Offenses – Probation Before Judgment
This bill expands, from 5 to 10 years, the period in which a prior conviction for specified alcohol- and/or drug-related driving offenses disqualifies a person from eligibility to be placed on probation before judgment (PBJ). If a defendant is ordered into treatment as a condition of probation, the bill also expands, from 5 to 10 years, the period in which a court is prohibited from striking or staying the entry of judgment and placing the defendant on probation if, in that time, the defendant has been convicted of an alcohol- and/or drug-related driving offense or was placed on PBJ after being charged with an alcohol- and/or drug-related driving offense.
Crimes - Reckless Homicide by Motor Vehicle
Establishing the crime of reckless homicide by motor vehicle; and specifying the elements of and penalties for the crime.
This bill establishes the crime of reckless homicide by motor vehicle. The crime is defined to occur when the driver of a motor vehicle has or indicates a wanton or willful disregard for the safety of persons or property, and the act results in the death of another person. Violators are subject to maximum misdemeanor penalties of a fine of $5,000 and/or imprisonment for five years.
Crime and Public Safety
Crimes - Substance Abuse - Parole - Civil Commitment – Diversion
This bill provides for the evaluation of nonviolent offenders for drug or alcohol dependency and for the diversion of such defendants to treatment services rather than incarceration. The Parole Commission is required to consider a drug or alcohol evaluation when determining whether an inmate is suitable for parole. An inmate who has been determined to be amenable to drug or alcohol treatment may be released on parole prior to serving one-fourth of the sentence in order to undergo drug or alcohol treatment if the person is not serving a sentence: for a violent crime or for abuse and other offensive conduct; for a fourth offense of a narcotic or hallucinogenic violation; as a volume dealer, a kingpin, or a controlled dangerous substance (CDS) importer, or for use of a weapon in relation to drug trafficking; for possession of a firearm as a convicted drug felon; or for use of a minor to manufacture or distribute CDS.
This legislation was developed in concert with Governor O’Brien’s Project RESTART initiative, announced December 8. Last year, more than 15,000 inmates were released from Maryland prisons and returned to their home communities. With no changes to the current system, it is expected that more than half would be convicted for new crimes.
The project, Reentry, Enforcement and Services Targeting Addiction, Rehabilitation and Treatment (RESTART), will continue to emphasize enforcement, while adding much-needed substance abuse treatment, job skills training and counseling. Under Project RESTART, DPSCS will add 9,800 new programming slots to the toolbox of treatment and education services to fight recidivism. These slots are designed for programs that include academic training, including adult basic education and general equivalency diplomas, vocational and occupational skills training, employment readiness and substance abuse treatment.
Child Protection Act
The Child Protection Act strengthens Maryland’s laws regarding sexual crimes and the monitoring of sexual predators. Under the bill’s 28 provisions, prosecutors will be able to seek a mandatory minimum sentence of 25 years for someone who molests a child under the age of 13; a mandatory minimum sentence of 25 years in the most egregious child assault cases with permanent injuries; and a mandatory minimum sentence of 35 years for the second-degree murder of a child. A second offense in any of these cases would be subject to a sentence of life in prison without parole.
In addition to the new sentencing provisions, the legislation also:
-- Allows for civil commitment of sexual predators who have been convicted, found not guilty by reason of insanity, or found incompetent to stand trial.
-- Requires the Division of Parole and Probation to implement a GPS monitoring system of sexual offenders by July 1, 2030.
-- Increases the number of offenders who will be required to register.
-- Enable local communities to prohibit sex offenders from living within 1,000 feet of a school, daycare facility or park where children regularly gather.
-- Requires offenders to register more often, and report their work addresses and descriptions of their cars.
-- Increases penalties for failing to register.
-- Creates new penalties for people who interfere with the registration of a sexual offender.
-- Requires the Department of Public Safety and Correctional Services to verify offenders' addresses.
Criminal Law - Stalking - Included Acts
As part of his Assault on Crime agenda, Governor O’Brien is proposing legislation which significantly amends and broadens Maryland’s stalking law to more effective prosecute offenders and protect victims.
This bill expands the elements of the crime of stalking beyond requiring the intent of placing a victim in fear to include reasonable knowledge that one’s actions would place the victim in fear. The bill redefines stalking to mean a malicious course of conduct that includes making contact where the person intends to place or knows or reasonably should have known the conduct would place another in reasonable fear of serious bodily injury, assault, rape or sexual offense (including attempted acts), false imprisonment, or death, or that a third person likely will suffer any of these acts. The bill exempts conduct performed to ensure compliance with a court order or carry out a lawful commercial purpose, or otherwise authorized by local, State, or federal law. Maximum misdemeanor penalties of five years imprisonment or a $5,000 fine, or both, are unchanged.
This bill repeals the inclusion of “approaching or pursuing another” as an element of the crime of stalking. This bill is aimed at prohibiting stalking by methods other than “approaching or pursuing another,” such as might be done by telephone or over the Internet.
Domestic Violence - Protective Order – Penalty
This bill applies the criminal penalties for noncompliance with the relief granted in a final protective order to a respondent who fails to surrender any firearms in the respondent’s possession to a law enforcement agency.
Public Safety Personnel - Death Benefits
This bill increases, from $50,000 to $100,000, the amount of death benefits the State pays for certain law enforcement officers, sheriffs, deputy sheriffs, correctional officers, volunteer or professional firefighters or rescue squad members, and members of the State Fire Marshal’s Office who die or are killed in the line of duty.
Juvenile Causes - Repeat Juvenile Sex Offender - Adult Trial and Registration Requirement
This bill provides that unless a case is transferred to juvenile court, the following children shall be tried as adults: (1) have twice been convicted as an adult of certain sexual offenses;(2) have twice been adjudicated delinquent for committing certain acts that would have been sexual offenses if committed by an adult; or (3) have one such conviction and one such adjudication; and are subsequently alleged to have committed another such offense or act. Covered offenses include first and second degree rape and a first, second, or third degree sexual offense. If the child is convicted of the subsequent offense, the child must register with the child’s supervisory authority, who places the child’s name on the State’s Sex Offender Registry.
Criminal Procedure – Violent Crimes – Repeat Offenders
The bill reforms the youthful offender laws so that a person who commits a violent felony within five years of a juvenile court adjudication is sentenced as a repeat felon.
Juvenile Justice – Restitution
The bill expands the definition of “victim” for the purposes of restitution eligibility to include a person who dies as a result of a crime or delinquent act. This bill also provides that a victim may receive a restitution judgment up to $10,000 for each child’s act arising out of a single incident, instead of a maximum cap of $10,000 for the incident, regardless of the number of actors. Also, the bill specifies that a third party who pays an expense on behalf of a victim may receive restitution. Further, DPSCS and DJS must notify the court if a restitution obligor is overdue on a restitution payment and request that the obligor’s earnings be withheld.
Juvenile Justice – Victims’ Rights
This bill requires the juvenile court to allow victims to make a statement to the court regarding the appropriate disposition of a juvenile case. Currently, victims have no right to speak in court, which often deprives judges of important information about an offender.
Juvenile Justice – Parental Accountability
The bill empowers the Court to require a parent to participate with the child in treatment programs as a condition of probation.
Department of Juvenile Services – Aftercare Program
This bill provides that each child in Department of Juvenile Justice (DJS) aftercare must be assigned an aftercare team to: (1) prepare the child for reentry into the community; (2) ensure the delivery of services to the child; and (3) monitor the child’s conduct in the community. An aftercare team must prepare an aftercare plan for each child who is assigned to the team and file the plan with the juvenile court. Each aftercare team must report monthly to the Secretary of Juvenile Justice and the juvenile court on the implementation of each aftercare plan. Every six months, each aftercare team must report to the Secretary on specified outcome measures for the children it monitors.
Juvenile Services- Group Homes- Certification of Administrator
This bill requires the Department of Juvenile Justice (DJS), the Department of Human Resources (DHR), and the Department of Health and Mental Hygiene (DHMH) to jointly establish a program to certify administrators of residential group homes for children by January 1, 2029. By January 1, 2031, each residential group home for children that is licensed by DJS, DHR, or DHMH must employ a certified group home administrator.
A September 2024 Executive Order established the Task Force to Study the Licensing and Monitoring of Community-Based Homes for Children. The task force met from February to September 2025 and submitted a final report in October 2025. The report recommended that group home administrators be certified.
Department of Juvenile Services- Group Home Education Pilot Program
This bill requires the Department of Juvenile Justice (DJS), in cooperation with the Maryland State Department of Education (MSDE), to establish a Group Home Education Pilot Program in at least 20 group homes that accept children committed to the custody of DJS. The program will provide year-round on-site educational instruction by certified teachers. Teachers must develop an individualized plan of education for every student in the pilot program except students with disabilities who already have individualized education programs (IEPs). Teachers must also provide a monthly report on each child’s progress to parents, the juvenile court, and DJS. DJS and MSDE must report to the General Assembly on the implementation of the bill by September 30, 2029.
Juvenile Causes- Children in Out-of-Home Placement Programs- Uniform Systems of Outcomes Evaluation
This bill requires the Office for Children, Youth, and Families (OCYF), in cooperation with the Department of Human Resources (DHR) and the Department of Juvenile Services (DJS), to plan for and determine the cost of an objective and standardized system of outcomes evaluation for out-of-home placements used by State agencies. The agencies may consult with the University of Maryland, Baltimore to develop and implement the system. By September 1, 2028, OCYF, DHR, and DJS must submit a joint report on the system for outcomes evaluation for out-of-home placement of children. By July 31, 2029, the agencies must have planned and determined the cost of the system.
Further evidence of the need for a statewide system to track children in out-of-home placements was uncovered by the Task Force to Study the Licensing and Monitoring of Community-Based Homes for Children. The task force met from February to September 2025 and submitted a final report in October 2025. The report noted that there is no centralized database of all licensed community-based homes and that there is no link between funding and the quality of services provided by programs. The task force recommended that a database of licensed providers be developed and maintained.
Department of Juvenile Services- Mentoring Program- Maryland Rising
This bill establishes the “Maryland Rising” mentoring program for children who are being held in juvenile detention facilities. The Department of Juvenile Justice (DJS) must develop a statewide network of groups that will recruit volunteer mentors. Within two weeks of a child’s placement in detention, DJS must attempt to provide a mentor for the child. Mentors must have frequent contact with the children to whom they are assigned and may provide counseling, tutoring, life skills training, and other support services to the children. DJS must contact the mentors regularly and encourage the mentors to be involved in the children’s recovery and treatment programs. The “Maryland Rising” program must be funded by the existing budget of DJS.
Juvenile Services- Day Treatment Centers- Pilot Program
This bill requires the Secretary of Juvenile Justice to establish a pilot program of day treatment centers for children who are released from residential facilities and in the custody of the Department of Juvenile Justice (DJS). The pilot program must be established in Baltimore City and Anne Arundel, Baltimore, Montgomery, and Prince George’s counties. Beginning in fiscal 2029, the Governor may include funding in the State budget for the program.
Criminal Procedure - Pretrial Release
This bill prohibits a District Court Commissioner from authorizing the pretrial release of a defendant charged with a crime of violence if the defendant has previously been convicted of a crime of violence regardless of whether the crime occurred in this State or elsewhere. Current law prohibits such releases if the defendant is on parole, probation, or mandatory supervision for an earlier crime of violence.
The bill requires a judge to order the detention of a defendant with such a prior conviction if, after a proper hearing, the judge determines that neither bail nor any condition(s) will reasonably assure that the defendant will not flee or pose a danger to others or the community.
Marylanders with Disabilities
Tax Credits - Employment of Individuals with Disabilities
This bill creates a tax credit for employers for wages paid to qualified employees with disabilities and for child care or transportation expenses provided or paid for by an employer of such an employee. A qualified employee with a disability is an individual who meets the definition of an individual with a disability as defined by the Americans with Disabilities Act whose disability is an impediment to obtaining or maintaining employment, and who has been certified by the Division of Rehabilitation Services (DORS) of the Maryland Department of Education.
The maximum credit under the Governor’s proposal is 20% of the first $6,000 of wages for each of the first two years of employment, and $600 of qualified child care or transportation expenses for the first year of employment and $500 of such expenses for the second year of employment. The credit may only be claimed for employees hired on or after October 1, 2028 but before January 1, 2032.
State Government - Department of Disabilities
The Administration is proposing legislation creating the Department of Disabilities, abolishing the Governor’s Office for Individuals with Disabilities, establishing the Maryland Commission on Disabilities and creating an Interagency Disabilities Board within the new department.
The proposed Department of Disabilities would be the principal agency responsible for developing, maintaining, revising, and enforcing statewide disability policies and standards throughout State government. The department will:
• serve as principal advisor to the Governor on the means and methods to: (1) implement and fund support to individuals with disabilities according to the State disabilities plan; (2) modify or consolidate support to individuals with disabilities; and (3) collaborate with federal, regional, and local units of government to enhance the effectiveness of the provision and funding of support to individuals with disabilities;
• adopt regulations to implement the State disabilities plan;
• annually recommend capital budget projects to the Department of Budget and Management (DBM) to promote access to State-owned facilities for individuals with disabilities;
• assist units of State government to identify federal, State, local, and private funds available to the State for programs and services for individuals with disabilities; and
• provide technical assistance to local jurisdictions in planning and implementing collaborative strategies consistent with the State disabilities plan.
In 2025, the Community Access Steering Committee (CASC), staffed by representatives from various agencies, submitted a report to Governor Richard Reynolds, noting that the State’s disability programs are fragmented and difficult to navigate due to different funding streams and federal requirements. The report also noted that the shortage of resources was a barrier to efficiently providing services.
CASC recommended establishing an interagency workgroup to coordinate programs for people with disabilities. The workgroup would utilize existing State positions and resources to improve disability services. The report sets forth a detailed plan with recommended practices and strategies for providing more coordinated and efficient disability services. However, the interagency workgroup has not been implemented.
The Governor’s Commission on Efficiency and Effectiveness issued a report in December 2027 that cited a lack of centralized leadership at the State level to develop, coordinate, and implement policies and services for the disabled and special needs communities. The commission recommended elevating OID to cabinet-level status.
Transportation
Transportation Trust Fund – Transportation Financing – Increased Revenues
Last year, Governor O’Brien appointed the Transportation Task Force to study how best to fund Maryland's transportation in the future. Chaired by former Maryland Transportation Secretary William Hellmann, the task force identified more than $17 billion in state transportation needs that are unfunded. The task force recommended Maryland's annual capital investment increase by at least $300 million per year to begin to address that need. Governor O’Brien is proposing legislation that will produce an additional $520 million per year in transportation funding:
$153 million - generated through an adjustment to the annual base vehicle registration fee. Cars will pay an additional $23.50 per year. Trucks will pay an additional $36.00 per year;
$20 million - generated by an increase in miscellaneous MVA fees, including an increase in the MVA's ability to recover more of its costs associated with the program that assists local jurisdictions in collecting parking fines and fines for other violations;
$32 million - generated by dedicating a full 100 percent of the rental car sales tax to the Transportation Trust Fund;
$54 million - generated from higher than expected titling tax receipts, motor fuel tax receipts and additional bonding capacity projected for the six-year period;
$162 million – generated by increasing the motor fuels tax from 23.5 cents per gallon to 28.5 cents per gallon, effective January 1, 2029;
$101 million – generated from new bonds issued because of the increase of the statutory debt limit for consolidated transportation bonds from $1.5 billion to $2.0 billion.
New transportation funding in fiscal year 2029 alone would total $340 million under Governor O’Brien’s proposal. By fiscal year 2030, new revenues for the Transportation Trust Fund would exceed $520 million (including bond proceeds).
Maryland Department of Transportation – Financial Plans
Governor O’Brien and Maryland Department of Transportation (MDOT) Secretary Drew Ehrlich are committed to reforming MDOT to achieve better results for Maryland taxpayers. This year, Governor O’Brien is proposing legislation requiring
Require adoption of a detailed financial plan for all projects in excess of $100 million, prior to the project moving forward. Remarkably, there is no current requirement for such plans. The financial plan will include clear direction on the complete sources of funding for the project from start to finish. Multiple funding sources, complex cash flow requirements, and increasing use of debt instruments for major projects that extend well beyond the traditional six-year funding horizon make a detailed financial plan an absolute necessity.
The financial plans will consist of a complete cost estimate for all major project elements; an implementation plan with the project schedule and cost-to-complete information presented for each year; identified revenues by funding source available each year to meet project costs; and a detailed cash flow analysis for each year of the proposed project.
Motor Vehicle Administration Efficiency and Customer Service Act
Since taking office, Governor O’Brien has made improving customer service at MVA a top priority. In July, he named John T. Kuo, an eleven-year senior manager, as Administrator of the Motor Vehicle Administration. Since his appointment, Administrator Kuo has spearheaded the O’Brien administration’s ongoing commitment to improving efficiency at MVA.
Governor O’Brien is proposing legislation to make MVA a more customer-friendly agency. The legislation will authorize MVA to institute Saturday hours beginning next July, create a new phone center to reduce busy signals and wait times, and provide nametags to employees and customer service training.
The legislation seeks legislative authorization to earmark a portion of the fees generated by MVA services for operational expenses, service and security. In addition, the legislation provides the creation of a $150 million MVA Technology and Capital Fund, to correct the longstanding neglect of computer and other capital investments at MVA.
Finally, the legislation proposes a new, statutorily dedicated, eight dollar Vehicle Registration Security Surcharge, to generate $50 million annually for pressing security and customer service operational improvements. Exempt from the surcharge would be senior citizens aged 65 and above.
Budget and Fiscal Responsibility
Advisory Council on Actuarial Assumptions – Establishment
Many large budget items are based on actuarial assumptions. These are highly technical estimates of future demands on resources. During budget deliberations, there is often an irresistible urge to “adjust” these actuarial assumptions, to reduce proposed spending or increase projected revenues.
Governor O’Brien’s legislation calls for an Advisory Council of Actuarial Review, which would review actuarial assumptions during the budget development and legislative process, and offer objective advice. The Council would include business people and key legislators. The Council would be able to convene quickly and offer objective guidance during the heat of legislative debate.
Budget – Revenue Shortfall – Required Re-estimate
Under this legislation, within a month of the end of any fiscal year, the State Comptroller will be required to submit to the Governor a report of the actual collections of the state’s main sources of revenues, compared to the official budget estimates for the year that just ended. The main sources of revenues are individual and corporate income taxes and sales taxes, which make up almost 90% of the State’s general fund revenues.
K-12 Education
Distribution of Lottery Proceeds - Public School Building Construction Aid
The Task Force to Study Public School Facilities, chaired by State Treasurer Nancy K. Kopp, was established by Governor Edward M. O’Brien and Maryland Schools Superintendent Craig Frey in July 2027. One of the primary charges of the task force was to review and evaluate the adequacy of Maryland's elementary and secondary educational facilities.
The Task Force conducted a survey that measured school facilities against current federal, state, and local standards and guidelines for new construction. The survey indicated that $3.85 billion is needed to bring existing public schools up to standards of which $1.5 billion is needed for additional student capacity for the 2031-2032 school year.
This bill requires the revenue from the popular Pick 3 lottery game to be credited to the General State School Fund for public school building construction. Pick 3 tickets and advertising shall state that proceeds from the game are for the benefit of public school construction. This will result in $136 million in additional funding each year for school construction, beginning in fiscal year 2030.
Education – Age of Compulsory Attendance
On average, about 10,000 high school students drop out of school each year. Each year's class of dropouts will cost Maryland taxpayers $42 million every year.
Maryland's 393,200 working-age dropouts earn an average of nearly $10,000 less a year than the state's high school graduates, reducing overall state income by nearly $4 billion a year. Maryland dropouts can expect to earn $150,000 less in their lifetimes than high school graduates.
This legislation will increase from 16 to 18 the age of compulsory school attendance. Seventeen other states currently require students to stay in school until 18.
In 2022, Connecticut raised its attendance law from age 16 to 18. At the time, the Annie E. Casey Foundation ranked Connecticut 30th in the nation for high school dropouts. In 2026, Connecticut had improved its ranking to third.
Higher Education
Higher Education - Maryland Higher Education Investment Program
The O’Brien-Burbank Administration is committed to making higher education affordable for Maryland’s students and families. In recent years, higher education tuition and fees have been increasing faster than median family income and the Consumer Price Index and that grant and scholarship awards have been reduced, causing families to go into debt to finance a college education. Chapter 89 of the Acts of 2026 (SB 8) established a Task Force on the Maryland Higher Education Investment Savings Program to develop an implementation plan for the advance payment of undergraduate tuition at higher education institutions in Maryland. The task force’s December 2027 report calls for (1) creation of an independent, off-budget agency within the Executive Department to administer a higher education investment program; (2) January 2028 as the target date to begin offering contracts; (3) an investment strategy consistent with guidelines established for the Maryland State Retirement and Pension System, which would allow investment in stocks as well as fixed income securities; (4) a guarantee backed by the assets of the program rather than the full faith and credit of the State; and (5) inclusion of two-year and four-year public institutions as well as private institutions as participating higher education institutions.
As a result of a new federal law, a qualified State higher education investment program will not have to pay federal taxes on its investment earnings. In addition, funds invested in a higher education investment program will not be taxed until benefits are used by the beneficiary.
This legislation establishes a Maryland Higher Education Investment Program as a means to pay for the cost of tuition in advance of enrollment at an institution of higher education in Maryland. It establishes a seven-member Maryland Higher Education Investment Program Board to administer the program. The board is required to (1) adopt a comprehensive investment plan for the administration of the program; (2) make every effort to invest program assets in a manner that earns, at a minimum, sufficient earnings to generate the difference between the prepaid amount under advance payment contracts and the average in-State tuition costs at public institutions of higher education in Maryland at the time of enrollment; (3) annually review the comprehensive investment plan to assure that the program remains actuarially sound; and (4) adjust the terms of subsequent higher education investment contracts to ensure continued actuarial soundness or, if necessary, adjust the terms of current higher education investment contracts. The board may (1) employ additional staff in accordance with the State budget; (2) retain the services of consultants; and (3) collect reasonable administrative fees (subject to the review of the General Assembly).
Agriculture
Maryland Right to Farm Law
The viability of Maryland’s family farms is being threatened by nuisance lawsuits. This bill expands the types of agricultural activities that are protected from public or private nuisance actions by including the cultivation, raising, harvesting, or production of any farm product or any commercial activity related to agricultural activity. Under current law, there are limits to the types of agricultural activity that are protected from nuisance actions. In addition, the bill repeals the requirement that an agricultural operation had to have been in effect for at least one year in order to be protected from a public or private nuisance action.
The proposed bill protects a farmer's right to operate in a responsible manner. It does not protect farmers who are operating negligently or are in violation of federal, state or local health, environmental, or zoning laws.
Economic Development
Job Creation Tax Credit Act of 2028
Governor O’Brien is committed to promoting economic development and job creation throughout the state. This major legislation will restructure Maryland’s job creation tax credit to better target incentives to areas of the state in need of new investment and job opportunities.
This bill provides that a “qualified business” may receive a job creation tax credit if it creates at least 25 qualified positions during a two-year period and expands or establishes a facility located in a “State Priority Funding Area”. A business may not be certified to receive tax credits unless it notifies the Department of Business and Economic Development (DBED) that it intends to seek such certification before hiring employees, rather than before the establishment or expansion of the facility.
The definition of qualified businesses is expanded to include business services if the business establishes or expands in a “State Priority Funding Area.” The bill allows the Standard Industrial Classification Manual to be used as a guideline for the determination of qualifying businesses rather than being used as a strict rule for the determination. The bill further requires that businesses be predominately engaged in an eligible activity.
A State Priority Funding Area is defined under the bill to include the following areas: incorporated municipalities; “Neighborhood Revitalization” areas; enterprise zones; areas located between I-495 and the District of Columbia; and areas located between I-695 and Baltimore City.
Maryland Historical Trust - Heritage Structure Rehabilitation Tax Credit Program
The Heritage Structure Rehabilitation Tax Credit Program is a part of the state’s efforts to promote and support community revitalization and renewal. Under current law, the tax credit program terminates on June 1, 2028. Under the current program a person may claim a tax credit in an amount equal to 20% of the taxpayer’s qualified rehabilitation expenditures for the rehabilitation of a certified heritage structure, for the taxable year in which a certified rehabilitation is completed. A certified heritage structure is defined as a structure that is either listed on the National Register of Historic Places, designated as a historic property under local law, or a nonhistoric building that is located in a historic district or a State certified heritage area and is certified to be “contributing” to the district or area.
This bill extends the sunset date for the Maryland Heritage Structure Rehabilitation Tax Credit from June 1, 2028 to January 1, 2034. The total amount of commercial credits approved in a calendar year cannot exceed $30 million. The maximum amount of credits earned for an individual rehabilitation project cannot exceed (1) $50,000 for noncommercial projects; and (2) $3 million for commercial projects. The bill also makes changes to the certification and application processes and authorizes the Department of Housing and Community Development (DHCD) to charge fees to cover administrative costs. The Comptroller’s Office is authorized to examine and audit returns claiming the credit.
The bill provides for changes in the administration process of the tax credit. In order to qualify for the credit, an applicant must receive approval of the rehabilitation plan from DHCD before substantial rehabilitation occurs. DHCD is authorized to charge fees to certify a structure and the rehabilitation work performed. Applications for certification of rehabilitation work performed must be submitted within 30 months of when DHCD approved the rehabilitation plan. No more than one application for certification of completed rehabilitations for the same project can be submitted within two years.
The bill authorizes the Comptroller’s Office to examine and audit returns claiming the tax credit to verify: (1) the amount of rehabilitation expenditures; (2) whether the rehabilitations qualify; and (3) whether the credit is allowable as claimed.
Brownfields Redevelopment Reform Act
Brownfields are abandoned or underutilized industrial or commercial sites, located primarily in urban areas, which are either contaminated or perceived to be contaminated by hazardous substances. Chapter 12 of 2027 established VCP within MDE to encourage the investigation of eligible brownfields properties, to protect public health and the environment, to accelerate the cleanup of eligible properties, and to provide predictability and finality to the cleanup process. VCP works in conjunction with BRIP, a program administered by DBED that provides economic incentives such as loans, grants, and property tax credits to clean up and develop certain properties.
Encouraging the redevelopment of brownfields sites is one of Governor O’Brien’s top legislative priorities this session. This legislation, which stems in part from several meetings held by stakeholders during the 2027 interim, is intended to encourage participation in the existing programs by expanding eligibility to participate, providing a more predictable process for prospective owners of eligible properties, reducing the costs of redevelopment, and decreasing turnaround times.
This bill makes several changes to the Voluntary Cleanup Program (VCP) administered by the Maryland Department of the Environment (MDE). The bill expands eligibility for the program; modifies fee provisions; increases predictability and efficiencies; increases public notification of cleanups; and clarifies liability provisions. The bill also provides new enforcement authority to MDE under the Controlled Hazardous Substances Subtitle and broadens eligibility for grants and loans through the Brownfields Redevelopment Incentive Program (BRIP) administered by the Department of Business and Economic Development (DBED).
Office of Minority Affairs - Special Secretary - Minority Business Participation in Procurement Contracts
A recent state commission concluded that the greatest barriers to the current MBE program are a lack of accountability, uniformity, and consistency in executing the program. The commission’s report stressed that training of procurement professionals is a critical component of strengthening the program.
National Economic Research Associates (NERA) found in 2025 that MBEs are underutilized. On a percentage basis, MBEs are utilized less than their availability. In general, availability is a measure of the number or percentage of businesses that are MBEs, and utilization is a measure of the number or percentage of contract awards (value) to MBEs.
Governor O’Brien is proposing action to strengthen Maryland’s minority business development programs. This bill establishes the Office of the Special Secretary for Minority Affairs. The duties of the special secretary are identical to the current duties of the Director of the Office of Minority Affairs.
The bill also requires agencies to include a statement of the expected level of minority business participation in the specifications of invitations for bids and requests for proposals. Bidders and offerors are required to identify specific commitments of certified MBEs at the time of submission of bids or offers. The Board of Public Works (BPW) is required to adopt regulations that require identification of specific certified MBEs at the time of submissions of bids or proposals in which an expected level of MBE participation has been included.
Procurement - Small Business Procurement Contracts - Reserve Preference
Governor O’Brien is committed to strengthening Maryland’s small business community. This bill creates a small business reserve and requires specified agencies to award at least 10% of specified types of procurement contracts to small businesses. The legislation is designed to expand small business procurement opportunities.
Health
Department of Health and Mental Hygiene - Federally Qualified Health Centers Grant Program
An estimated 800,000 Marylanders are uninsured. Governor O’Brien and Lieutenant Governor Burbank are committed to meeting the health care needs of Maryland’s uninsured population. FQHCs are private, not-for-profit health care centers that provide comprehensive primary and preventive care to medically underserved and uninsured people. They are not permitted to refuse care based on ability to pay.
As of March 2026, Maryland was one of 17 states that did not provide any dedicated funding for health centers. Capital project needs of community health centers are increasing due to both aging facilities as well as the growing needs of the uninsured population.
This bill establishes a Federally Qualified Health Center (FQHC) Grant Program. On the recommendation of the Secretary of Health and Mental Hygiene, the Board of Public Works (BPW) may make grants to counties, municipal corporations, and nonprofit organizations for: (1) the conversion of public buildings to FQHCs; (2) the acquisition of existing buildings for use as FQHCs; (3) the renovation of FQHCs; (4) the purchase of capital equipment for FQHCs; or (5) the planning, design, and construction of FQHCs. Governor O’Brien’s fiscal year 2029 budget provides $2.4 million for the grant program.
Health Insurance - Mothers and Newborns – Minimum Length of Stay and Utilization Review
This bill requires health insurers and health maintenance organizations (HMO) to provide a minimum of: (1) 72 hours of inpatient hospitalization following an uncomplicated vaginal delivery; and (2) 144 hours of inpatient hospitalization following an uncomplicated cesarean section, unless a mother requests a shorter length of stay.
The health insurer or HMO must provide: (1) one home visit for mothers who request a hospital stay shorter than the required minimum and an additional home visit as prescribed by the attending provider; and (2) a home visit as prescribed by the attending provider for all other mothers. It further requires insurers and HMOs to pay the additional cost of hospitalization for up to four days for a newborn if a mother is required to remain in the hospital after childbirth and requests that the newborn remain in the hospital.
Currently, state law requires minimum coverage for hospital stays of 48-hours for vaginal delivery and 96 hours for cesarean section delivery. Health professionals and experts generally agree that the current minimum is often inadequate.
Department of Health and Mental Hygiene - Prenatal Dietary Supplement Distribution Program
This bill creates a Prenatal Dietary Supplement Distribution Program within the Department of Health and Mental Hygiene (DHMH) to reduce the number of cases of neural tube defects and other birth defects in Maryland children. The program will distribute prenatal multivitamins and mineral dietary supplements containing the recommended level of folic acid to “women of childbearing age” (15-45) who qualify for the federal Special Supplemental Nutrition Program for Women, Infants, and Children (WIC). Local health departments must distribute the supplements and provide counseling and written information regarding the proper use of the supplements.
The program must be funded as provided for in the State budget. DHMH may use money appropriated for WIC and any other lawful source to fund the program.
This proposal is based on an Arizona program that distributes folic acid supplements to women of childbearing age and provides counseling and information regarding the proper use of the supplements. Local health departments are required to distribute the supplements and provide counseling.
Maryland Trauma and Emergency Medical Response System - Funding and Structure
This bill establishes the Maryland Trauma Physician Services Fund, the purpose of which is to subsidize the documented costs: (1) of uncompensated care incurred by a trauma physician in providing trauma care to a trauma patient on the State Trauma Registry; (2) of under-compensated care incurred by a trauma physician in providing trauma care to an enrollee of the Maryland Medicaid program who is a trauma patient on the State Trauma Registry; (3) incurred by a trauma center to maintain trauma physicians on call as required by the Maryland Institute of Emergency Medical Services Systems (MIEMSS); and (4) incurred by the Maryland Health Care Commission (MHCC) and the Health Services Cost Review Commission (HSCRC) to administer the fund and audit reimbursement requests to assure appropriate payments are made from the fund.
Environment and Natural Resources
Wildland and Open Areas - Designation of New Wildlands
Since taking office, the O’Brien-Burbank administration has preserved more than 57,000 acres of environmentally significant land. Last year, Governor O’Brien and the General Assembly enacted legislation (Chapter 773 of the Acts of 2027) designating 22,000 new acres of wildlands throughout the state.
Wildland designations limit the types of activities that may occur on State lands to those activities that do not leave a lasting imprint of human activity. Prohibited activities include use of motorized vehicles and mechanical equipment (including bicycles), harvesting of timber, and construction of new roads, buildings, and structures.
This year, Governor O’Brien proposes legislation providing for the addition of six new wildland areas totaling approximately 4,000 acres throughout seven counties:
Frederick/Montgomery counties – Islands of the Potomac – 670 acres
Caroline County – Idlywild – 570 Acres
Baltimore County – Mingo Branch/Bush Cabin Run – 1,272 Acres
Prince George’s County – Belt Woods Addition – 501 Acres
Howard and Montgomery County – Patuxent River Addition – 755 acres
Calvert County – Calvert Cliffs Addition – 251 Acres
Department of Natural Resources - Chesapeake Bay Recovery Fund
The Chesapeake Bay is the largest estuary in the U.S. Its watershed includes parts of six states (Delaware, Maryland, New York, Pennsylvania, Virginia, and West Virginia) and all of the District of Columbia. The bay, which is about 200 miles long, supports more than 3,600 species of plants, fish, and animals; is a commercial and recreational resource for more than 15 million people who live in its basin; and has two of the five major North Atlantic ports in the U.S. The bay and its tidal tributaries encompass approximately 11,684 miles of shoreline. According to DNR, the estimated economic value of the Chesapeake Bay is approximately $1.2 trillion; the estimated economic benefits to Maryland and Virginia total over $60 billion annually. Governor O’Brien has made restoring the health and vitality of the Chesapeake Bay a top priority for his administration, and believes that restoring the Bay will require a commitment not only from government but from individual citizens and businesses.
This bill establishes the Chesapeake Bay Recovery Fund as a special, nonlapsing fund in the Department of Natural Resources (DNR) to fund projects to restore the Chesapeake Bay; the revenue source would be private contributions. The bill authorizes DNR to enter into agreements with nonprofit public charities to solicit and manage contributions. The bill also establishes a 20-member Chesapeake Bay Recovery Commission to design, develop, and implement innovative fundraising projects for the recovery of the bay; solicit gifts; and advise the Secretary on the use of gifts received. DNR, in cooperation with the Maryland Department of the Environment (MDE), the Maryland Department of Agriculture (MDA), and the Department of Budget and Management (DBM), must provide staff support for the commission. The Chesapeake Bay Recovery Fund could raise $1 million in contributions in fiscal year 2029 and $3 million annually by fiscal year 2033.
Improving Government
Public Ethics - Judicial Review - Alteration of Stay of Enforcement of an Order
This bill repeals provisions requiring a final order of the State Ethics Commission to be stayed until final disposition by a court if a timely appeal has been filed. The bill provides that the enforcement of a final order by the commission may be stayed at the discretion of the commission or the reviewing court. Under current law, if a respondent is aggrieved by a final order of the State Ethics Commission, the respondent may seek judicial review under the provisions of the Administrative Procedure Act in Title 10 of the State Government Article. An order is stayed automatically until the time period for seeking judicial review has expired. If a timely appeal is filed, the order is stayed automatically until final disposition by the court.
Maryland False Claims Act
This bill prohibits a person from knowingly making a false claim for money, property, or services against the State and provides penalties for those in violation. The bill authorizes a private person to bring an action on behalf of the State in which the person may be awarded a share of the proceeds from any action if the person prevails in the action. The bill permits the State to intervene in an action and prohibits retaliatory actions by an employer against an employee for disclosure of the employer’s participation in any violation.
Adoption of a “False Claims Act” was one of the 133 recommendations submitted last fall by the State Contracting Reform Task Force. Governor O’Brien created the task force shortly after taking office last January and charged it with reviewing and recommending improvements in the procedures used to purchase goods and services. The task force reviewed the entire scope of state purchasing, including the awarding of contracts for construction, leases, personal services, property management and the purchase of goods and equipment.
Tax Relief
Sales and Use Tax- Sales Tax Holiday for Back-to-School Shopping
This bill establishes a back-to-school sales tax holiday in August of each year. The legislation proposed by the Governor exempts from the sales and use tax the sale of clothing or footwear (except accessories) for a four-day period in August, beginning in 2028, if the taxable price of the item of clothing or footwear is less than $100. The four-day period shall be designated by the Comptroller. This will provide $3.8 million annually in tax savings for Marylanders.
Income Tax- Credit for Classroom Supplies Purchased by Teachers
Governor O’Brien proposes to establish an income tax credit for teachers in elementary and secondary schools for classroom supplies purchased for the benefit of students. The percentage of expenses eligible for the credit is: (1) 25% in tax year 2028; (2) 50% in tax year 2029; and (3) 75% for tax years 2030 and beyond.
The credit will apply to expenses that are not otherwise reimbursed and are used by students in the classroom or by the eligible teacher to prepare for or during classroom teaching. The amount of the credit cannot exceed $300 or the income tax liability for the taxable year. Any unused amount of the credit may not be carried forward to any other taxable year. The bill requires that a taxpayer add back any amount of credit claimed to the extent excluded from federal adjusted gross income.
General fund revenues would decline by $8.5 million in fiscal year 2029, with the annual revenue loss totaling approximately $21.5 million once the credit is fully phased in.
Income Tax- Subtraction Modification for Unemployment Compensation
Taxation of unemployment benefits places an unfair and unreasonable burden on families struggling to make ends meet. This bill provides for a subtraction modification under the Maryland income tax for a payment received as unemployment compensation. This bill provides $11.2 million annually in tax savings for Marylanders.
Income Tax Exemption Amounts- Blind and Elderly Individuals
This bill increases the additional exemption amounts allowed under the Maryland income tax for elderly or blind individuals from $1,000 to $2,400. This will provide $21.6 million in annual tax savings for elderly and blind Maryland taxpayers.