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House Passes Mortgage Fraud, Foreclosure Rescue Bills

By Annapolis Digest
Friday, March 21, 2008

The House of Delegates overwhelmingly passed bills yesterday creating a criminal statute allowing authorities to prosecute mortgage fraud and prohibiting "foreclosure rescue transactions," in which homeowners are tricked into signing over residences to third parties.

The fraud bill, proposed by Gov. Martin O'Malley's administration, passed 116 to 19. The legislation aims to stop misrepresentations from mortgage lenders. The foreclosure rescue bill was approved 135 to 1.

The proposals are part of a package of bills introduced by O'Malley (D) to slow the state's rising rate of foreclosures. The House and Senate passed other foreclosure bills this week.

-- Philip Rucker

Teen Driver Bill Passes Unanimously

A proposal to require parental notification of teenage drivers who commit moving violations, such as speeding, has cleared both chambers of the General Assembly and could soon become law.

The House voted unanimously yesterday to pass the parental notification bill, proposed by Del. Murray D. Levy (D-Charles). The measure is among several addressing teenage drivers after a rash of fatal accidents in the fall involving young drivers in the Washington suburbs.

The Senate has passed a similar bill proposed by Sen. Thomas M. Middleton (D-Charles). The two chambers must reconcile differences before legislation can be sent to Gov. Martin O'Malley (D) for his signature.

-- Philip Rucker

Senate Approves Capital Budget

The Senate yesterday voted unanimously to approve a $1.5 billion capital budget for the coming fiscal year, including $333 million in school construction funding.

School construction funding has emerged as a leading priority for Gov. Martin O'Malley (D) and lawmakers, with the General Assembly approving $400 million for that purpose for this fiscal year.

The budget approved last night also includes $472 million for environmental projects, $93 million for prisons and other public safety projects and $325 million for higher education facilities.

The $1.5 billion in capital projects would be funded by $935 million in general revenue bonds and $151 million in revenue bongs. The balance would be paid for with operating funds.

With last night's 45 to 0 vote, the capital budget now moves to the House of Delegates.

-- John Wagner

Malt Drink Bill Clears Senate

The Senate approved legislation yesterday that would allow alcoholic malt drinks marketed with names such as Mike's Hard Lemonade to be sold as beer in package stores, gas stations and convenience markets in jurisdictions that allow those sales.

The bill, sponsored by Sen. Richard F. Colburn (R-Dorchester), prompted a heated floor debate before passing 36 to 10.

Opponents said the legislature would be making the sweet drinks more accessible to young women, to whom they are marketed.

"Why are we going to enshrine in our law the ability to get these gateway beverages at stores that sell beer?" asked Sen. Richard Madaleno (D-Montgomery). He said the drinks, known in the industry as "flavored beer," are known as "cheerleader drinks" aimed at underage girls.

Colburn said, however, that the drinks' average consumer is a 35-year-old female. The bill would put Maryland in line with most states and the District.

The bill would allow the drinks to be taxed at the same rate as beer, which is lower than that for hard liquor. A similar bill is pending in the House of Delegates.

-- Lisa Rein

Green Building Bills Approved

New or renovated state government buildings and schools must be constructed as energy-efficient buildings, under similar bills that passed the House and Senate yesterday.

Buildings must meet "silver" level standards set by the U.S. Green Building Council's Leadership in Energy and Environmental Design. The bill was introduced by Gov. Martin O'Malley (D).

The House bill passed 135 to 1.

The lone nay vote was House Minority Leader Anthony J. O'Donnell (R-Calvert), who had raised concerns about whether it would cost too much to construct the buildings. Similar legislation passed the Senate 40 to 5.

-- Philip Rucker and John Wagner

House Honors American Indians

The Friday after Thanksgiving will be known as American Indian Heritage Day, under legislation that passed the House 136 to 2 yesterday.

The day is a state holiday, but the bill will give the day a name to officially honor Native Americans. The bill was introduced by House Majority Whip Talmadge Branch (D-Baltimore), who is part black and part American Indian.

"When the Pilgrims first arrived, American Indians worked with them to educate them about the land, plant life and medicines available, which helped to establish the healthy and prosperous country we know today," Branch told the Associated Press.

-- Philip Rucker

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