Contact: Valerie Connelly or Kurt Fuchs
(410) 269-0656        (410) 269-0081 – fax

No. 4  2/9/06  

Hearings and briefings next week include:

S.B. 257 – Critical Areas Program – Resource Conservation Areas – National Wildlife Refuges – Senator Brochin
ED., HEALTH AND ENVIRON. AFFAIRS, 2 West Miller, Tuesday at 1:00pm
This bill would prohibit the use of growth allocations for development (available under the Chesapeake Bay and Atlantic Coastal Bays Critical Areas Programs) on property adjacent to or within 1,000 feet of the waters of a major tidal tributary of a National Wildlife Refuge.  When these Programs took effect development potential within the designated areas was drastically reduced and as a method of compensation, jurisdictions were allowed “growth allocations” equal to roughly 5% of the of the resource conservation area affected.  This bill is the result of a major development being proposed outside of Cambridge, near the Blackwater National Wildlife Refuge, which has sought a significant amount of growth allocations in order to achieve increased development density.  The bill’s provisions would apply to developments proposed before January 1, 2006.   It is an ‘emergency bill’ requiring a 3/5 majority vote in both Houses, to become effective the day of its passage.  DORCHESTER COUNTY FARM BUREAU HAS NOT FINALIZED A POSITION ON THIS ISSUE. 

S.B. 268 – Mandatory Participation in the Regional Greenhouse Gas Initiative – Senator Garagiola
ED., HEALTH & ENVIRON. AFFAIRS, 2 West Miller
This bill requires the Governor to include Maryland in the 7 state Regional Greenhouse Gas Initiative (RGGI).  The goal of the RGGI is to reduce greenhouse gases by 10% below current levels by 2018.  The primary target is carbon dioxide pollution from power plants.  The 7 states currently involved are DE, NJ, NY, CT, VT, NH and ME.  FOR INFORMATION ONLY

H.B. 2 – Agricultural Stewardship Act of 2006  - The Speaker
ENVIRONMENTAL MATTERS & APPROPRIATIONS, 250 NHOB, Tuesday at 1:00pm
This bill is the result of the work of the Agricultural Stewardship Commission that was appointed by the leadership of the House and Senate to meet over the Summer of 2005.  The bill recommends increased funding for several Best Management Practices on farms to help reduce pollution in the Bay.  These increased funds include:  $ 7 million for MACs, $3 million per year up to a total of $14 million for Cover Crops, $750,000 for Manure Transport, $20 million for MALPF, $5 million for MARBIDCO’s Next Generation Farmland Acquisition Program and $5 million for MARBIDCO in general, $2 million for Maryland Cooperative Extension to reestablish the soil testing lab and to hire staff for BMPs, and $2.5 million for staff in the 23 Soil Conservation District offices. (Funding recommendations may be acted on by the Governor in the annual budget or by legislators in negotiation over supplemental budget requests.)  The bill also requires County governments to include Priority Preservation Areas for agricultural land in their comprehensive plan.  The PPAs must be submitted to the state for approval based on land mass and zoning.  The bill encourages the University of Maryland to establish a major in Agricultural Education and requires the University to establish an agricultural internship program that would allow students to get hands on experience working on Maryland farms.  Finally, the bill creates a Task Force on Incentives for Agriculture to look at tax incentives and others that would benefit the industry.  MFB has a seat on the Task Force.  The report is due by December 2006.  MD FARM BUREAU SUPPORTS H.B. 2.

H.B. 396 – Agricultural Operations – Nuisance Actions – Requirements – Delegate Elmore
ENVIRONMENTAL MATTERS, 251 NHOB, Tuesday at 1:00pm
This bill enhances the state and county Right to Farm laws by mandating the use of a local ag reconciliation board (if provided for in the county Right to Farm ordinance) before a suit can be taken into court.  The bill remedies the situation that occurred last year in Wicomico County where the attorney for a plantiff ignored the local Right to Farm ordinance and went straight to court.  The farmer spent thousands of dollars defending himself before the judge threw the case out for skipping the local mediation process outlined in the local ordinance.  The sponsor is expected to offer an amendment to improve the bill by requiring that all right-to-farm cases go through mediation before going to court.  Counties without a mediation board would be able to use the state’s Farm Sense program.  MARYLAND FARM BUREAU SUPPORTS H.B. 396 AND SUPPORTS THE SPONSOR’S AMENDMENT.

S.B. 2 – Maryland Estate Tax – Senator Currie
BUDGET AND TAXATION, 3 West Miller SOB, Wednesday at 1:00pm
This bill increases Maryland’s Unified Credit for estate tax from $1 million to $2 million.  The bill also limits the tax for the portion of the adjusted taxable estate in excess of $2 million to 16 percent.  MARYLAND FARM BUREAU SUPPORTS S.B. 2.

S.B. 295- Maryland Estate Tax – Unified Credit Effective Exemption Amount and Deduction for State Death Taxes – Senator Brochin
BUDGET & TAXATION, 3 West Miller, Wednesday at 1:00pm
This bill recouples the state and federal estate tax law by providing for the same unified credit under state law as is allowed by the Internal Revenue Service.  The federal government is slowly phasing out the federal estate tax by increasing the unified credit each year.  MD decoupled the credit calculation 2 years ago.  MARYLAND FARM BUREAU SUPPORTS S.B. 295.

S.B. 337 – Income Tax – Credit For Preservation and Conservation Easement – Refundability – Senator Dyson
BUDGET AND TAXATION, 3 West Miller, Wednesday at 1:00pm
This bill makes the existing tax credit for the donation of easements to the Maryland Environmental Trust and the Maryland Agland Preservation Foundation a “refundable” tax credit.  The bill sets a credit limit of $5,000 per year.  FOR INFORMATION ONLY

S.B. 360 – Income Tax Credit for Preservation and Conservation Easements – County Tax Credit Authorized  - Senator Dyson -
BUDGET AND TAXATION, 3 West Miller, Wednesday at 1:00pm
This bill allows a county to authorize a credit against county income tax for an easement conveyed to the Maryland Environmental Trust or the MD Agland Preservation Foundation.  MARYLAND FARM BUREAU S.B. 360.

S.B. 545 – Inheritance Tax – Exemption for Property Passing to Family Partnership or Limited Liability Company – Senator Giannett
BUDGET AND TAXATION, 3 West Miller, Wednesday at 1:00pm
This bill would add a family partnership and limited liability company to the list of eligible entities which when receiving property from a decedent, are exempt from the inheritance tax on that property.  MARYLAND FARM BUREAU SUPPORTS S.B. 545.

H.B. 365 – Vehicle Laws – Registration Fees – Discount for Seniors and Individuals with Disabilities – Delegate Weir,
ENVIRONMENTAL MATTERS, 2^nd floor NHOB
This bill would reduce the vehicle registration renewal fee by 50% for disabled individuals and individuals 70 years of age or older so long as all owners of the vehicle meet the requirements and the vehicle is driven less than 5,000 miles annually.  The registration fee reduction does not apply to the first issuance of a registration to the owner of a vehicle after title or interest transfers to that owner.  FOR INFORMATION ONLY

H.B. 588 – Ethics – Employees or Officials of the Department of Agriculture – Farm Business – Delegate Stull,
ENVIRONMENTAL MATTERS, 150 NHOB, Wednesday at 1:00pm
This bill would allow farmers and people with an interest in a farm business to be employed by the Maryland Department of Agriculture and its branch offices – including the Soil Conservation District Offices.  Under current law, it is presumed that there is an ethical conflict for a person involved in farming to be employed by the agency.  Potential employees must seek extensive review and waiver from the state ethics office on this matter.  An amendment is expected to be offered to clarify that an employee is not exempt from ethics concerns completely – for instance he or she could not regulate their own nutrient management plans.  But, it would allow persons with the appropriate farm background to be employed in jobs that require farming knowledge.    MARYLAND FARM BUREAU SUPPORTS H.B. 588.

H.B. 7 – Charles County – Property Tax – Payment Deferral – Delegate Levy
WAYS AND MEANS, 130 NHOB, Wednesday at 1:00pm
This bill permits the Charles County government to pass a local law to allow older residents to defer the payment of a portion of property taxes until death or the sale of the home and property.  The county is permitted to define the age of eligibility and the amount of the tax that can be deferred.  The bill only applies to residents who have lived in a home for at least 5 consecutive years.  A lien will be placed on the property for the amount of the taxes deferred and any interest established by the county.  MARYLAND FARM BUREAU SUPPORTS H.B. 7.

H.B. 288 – Local Property Tax – Credit for Individuals at Least 75 Years Old – Delegate Holmes
WAYS AND MEANS, 130 NHOB, Wednesday at 1:00pm
This bill would allow a Baltimore City, a county, or municipality to grant a property tax credit against the tax imposed on the principal residence of a person at least 75 years old.  The governing body of such jurisdictions is to determine the amount and duration of the credit, as well as the pertinent regulations and procedures for issuance. To be applicable to all taxable years beginning June 30, 2006.  MARYLAND FARM BUREAU SUPPORTS H.B. 288.

The following bills are also being heard in the Ways and Means Committee on Wednesday at 1:00pm.  They are intended to give a property tax credit seniors in local communities:

H.B. 266 – Anne Arundel – Property Tax – Credit for Individuals Over Age 70
H.B. 560 – Frederick County – Property Tax Credit – Individuals of Age 70 or Older
H.B. 623 – St. Mary’s County –Property Tax Credit for Individuals Over Age 70 – Repeal of Sunset
MFB SUPPORTS ALL LOCAL BILLS TO GIVE SENIORS A PROPERTY TAX CREDIT.

 H.B. 556 – Correctional Services – Maryland Correctional Enterprises – Open Market Sales – Food Service – requested by the Department of Public Safety
HEALTH AND GOVERNMENT OPERATIONS, 240 NHOB
This bill authorizes the Maryland Correctional Enterprises to establish a program to that would allow pre-release prison inmates to accept paying jobs on farms and in processing facilities for food products and seafood.  The bill requires that the state labor pool be diminished before inmates can be hired by employers.  Employers may not pay inmates less than wages paid for similar work in the private sector in the same locality.  MD Correctional Enterprises would provide transportation and supervision of all workers participating in this program. Maryland Farm Bureau will seek clarifying amendments to ensure that the prison system would not operate its own farm but would instead make farm jobs available to their pre-release labor force.  MARYLAND FARM BUREAU SUPPORTS H.B. 556.

---CAR MAKERS ASSISTING IN SPREAD OF E85 PUMPS---General Motors and Ford Motor Company have both announced commitments to help increase the number of E85 ethanol gasoline fuel pumps in the nation.  Both companies are touting their line-ups of E85-compatible vehicles being built today.  General Motors made its latest statements while announcing 26 new E-85 stations in the Chicago area. The company plans to work with state and federal governments, oil companies and ethanol companies to get refueling stations built.  Ford meanwhile announced it is launching the “Midwest Ethanol Corridor” program for expanding E85 availability by about one-third throughout the states of Illinois and Missouri during 2006. This will be done in partnership with VeraSun Energy, a renewable energy company.

---AFBF RELEASES IMMIGRATION REFORM STUDY---Failure to include comprehensive guest-worker provisions in any new or reformed immigration law could cause up to $9 billion annually in overall losses to the U.S. agriculture industry and losses of up to $5 billion annually in net farm income, according to an updated study released by the American Farm Bureau Federation on Tuesday.  

If Congress ultimately approves a new immigration law that does not account for agriculture’s needs for guest workers, like the bill approved by the House last year, then the consequences for American agriculture will be dire, according to the study.  The fruit and vegetable sector as it now exists would disappear, the study says. Up to one-third of producers – who are especially dependent on hired labor – would no longer be able to compete. Instead of stocking produce grown and harvested in the U.S., America’s grocers would increasingly fill their shelves with foreign-grown produce, resulting in billions of dollars currently kept in the U.S. being sent overseas.

The Hotline will be posted on the MFB website at the end of each week.  Our website address is www.mdfarmbureau.com.  The Maryland General Assembly’s website can also serve as a valuable tool for legislative information.  The Home Page offers the proceedings and agendas of the House and Senate, hearing schedules, bill information and status, and other data about the Maryland General Assembly.  Plus, there are links available to other related websites.  The website is updated nightly, and may be accessed at www.mlis.state.md.us .