By Meghan Oliver
Sentinel Staff Writer
Governor Robert L. Ehrlich, Jr., vetoed the Fair Share Health Care Fund Act, also known as the Wal-Mart Bill, May 19, with an override by the legislature expected at its next session.
The bill, which Maryland's General Assembly approved in early April, requires organizations with more than 10,000 employees making less than the state's median income to spend a minimum of 8 percent of their payroll on health benefits for employees, or put that money into the state's Medicaid fund.
While the state's lawmakers have said that Wal-Mart was not the specific target of this bill, it appears to be the only Maryland company that would be affected as other companies with more than 10,000 employees already meet that eight percent minimum, or six percent minimum for non-profit organizations.
In a statement released by the governor's office, Ehrlich criticized the bill's possible damage to the local job market.
"This bill directly threatens jobs and economic development in Maryland," he said. "This tax could cost our Eastern Shore hundreds of jobs in the foreseeable future and put thousands more at risk statewide if other large employers move out of Maryland to avoid new taxes."
The governor expressed concern that Wal-Mart would not open a distribution center planned for Somerset County, saying the company would "reconsider" that option if the Fair Share Health Care Fund Act passed. The store could provide up to 750 jobs.
Delegate Pauline Menes (D-College Park) of the 21st District said implementing the Wal-Mart Bill would have little impact on the giant retailer's decision to open future stores in the state.
"It would seem to me that a company like Wal-Mart would proceed to open businesses and employ people as long as they are making a profit," Menes said. "And I cannot imagine paying the appropriate cost for health care for employees would effect their bottom line. They would continue to make a profit. Wal-Mart will continue expanding Wal-Mart as long as Wal-Mart is making money, and paying for health care is not going to keep them from making money."
While the governor touts a potential loss of jobs provided by a new Wal-Mart distribution center in Somerset County, Menes said the competitive edge Wal-Mart maintains over other business in the area by not spending money on employee health care is equally bad for local business-owners and taxpayers.
"The tremendous number have less than full-time employees who are the majority of their workers, they do not offer health coverage. It's just so unfair and it puts [Wal-Mart] in competition over employers who do spend money on their employees' health care. It puts a burden on any person paying taxes in (a state in) which they have [Wal-Mart] employees by not covering them properly."
Menes further explained that Wal-Mart gave its employees information on how to go about obtaining health coverage on their own, which taxpayers would fund through Medicaid.
Plans to override the governor's veto are likely at the next legislative session.
"I would hope and expect that Republican members of the House and the Senate would join the Democrats and be a coalition and show how important it is for a bill to be passed like this in Maryland," Menes said.
File Photo by Marketa Ebert