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

No. 5  2/16/06  

Don’t Miss the Action Request to Save MD Wineries!

Below is a list of some of the bills scheduled for hearing next week.  There are more than 50 bills on Farm Bureau’s list for next week.  We could not include all of them in Hotline. We urge you to check the Maryland General Assembly website for the complete hearing schedule.

The House Environmental Matters Committee will hold hearings on many of the bills that have been introduced to address concerns over the use of eminent domain.  The hearing is scheduled for 1:00pm on Tuesday February 21^st. 

Many of the bills scheduled for the hearing have some of the provisions important to Farm Bureau.  None have provisions to specifically protect farmland.  Maryland Farm Bureau will urge the Committee to adopt amendments to protect all farmland that qualifies for the agricultural use assessment from eminent domain.  Following are some of the 26 bills on eminent domain will be considered during the hearing:

H.B. 44 – Eminent Domain – Condemnation Proceedings and Limitation on Condemnation Authority – Delegate Smigie
This is a constitutional amendment to prohibit the state, counties and municipalities from using condemnation to take private property for economic development where ownership of the property is conveyed to a private party.  The bill also prohibits counties and municipalities from transferring to a private party property taken for urban renewal.  A constitutional amendment requires approval by 3/5 of the House and Senate before it is put to the votes for approval.

H.B. 79 – Real Property – Eminent Domain – Limitations on Condemnation Authority – Delegates Boteler & Cluster
This is a Constitutional Amendment to define “public use” for the purposes of condemnation of property and to prohibit the condemning of private property without a statement from the condemning authority on the public necessity for the condemnation.  The bill requires a 3/5 vote of the House and Senate before being placed in front of the voters in the next general election.

H.B. 80 – Real Property – Eminent Domain – Limitations on Condemnation Authority – Delegates Boteler & Cluster
This bill defines “public use” and prohibits the taking of private property unless it is necessary for a public use.  In the bill “public use” means “public ownership or control or physical use or access by the general public.”  Public use includes use of property by the public or the government.  It also includes use by a utility or common carrier, use for emergency response and destruction of property to prevent a public catastrophe.  The bill requires that the original owner or heirs be given the right to first refusal to buy back property if it is not used for the public use and the condemning authority chooses to sell it.

H.B. 106 – Eminent Domain – Condemnation Costs – Fees Incurred – Delegate Conroy
This bill requires a condemning authority to pay all of the legal, appraisal and expert fees incurred by a defendant in a condemnation proceeding no matter what the outcome of the trial.  Current law only requires the payment of legal fees if the judgment is for the defendant on the right to condemn – and then the amount is limited.

 H.B. 619 – Harford County – Eminent Domain – Limitation on Condemnation Authority – Harford Delegation
This is a constitutional amendment to limit the use of condemnation authority in Harford County only.  The bill defines “public use” as public ownership, control, use or access.  Under the bill “public use” does not include economic development projects for the purposes of urban renewal, community revitalization, commercial or industrial development, job creation or the generation of tax revenue.  Current law in Maryland allows the use of condemnation for public use with just compensation.  The problem with current law is that public use has been too liberally interpreted.  This bill significantly narrows the definition.

H.B. 740 – Condemnation Proceedings – Compensation – Defendant’s Legal Fees – Delegate Mandel
This bill requires a condemning authority to pay for reasonable legal fees (as set by the court) for the defendant in a condemnation trial if the judgment is for the plaintiff on the right to condemn and the amount of damages awarded to the defendant is at least 10% greater than the amount offered by the plaintiff.  Under current law the condemning authority only has to pay legal fees if the judgment is for the defendant on the right to condemn. 

H.B. 803 - Eminent Domain - Moving, Relocation, and Reestablishment Expenses  - Delegate Pugh

 H.B. 483 – Income Tax – Subtraction Modification – Amounts Received for Agricultural Preservation  - Delegate Smigiel - WAYS AND MEANS, 130 NHOB, Tuesday at 1pm
For state income tax purposes, this bill allows Maryland taxpayers to subtract from their income the amount received from the sale of an easement to MALPF, Rural Legacy and Program Open Space.  MARYLAND FARM BUREAU SUPPORTS H.B. 483.

H.B. 330 – Hunting Licenses – Exemptions from License Requirements – Delegates Haddaway & Eckardt - ENVIRONMENTAL MATTERS, 250 NHOB, Wednesday at 1pm
This bill expands the list of persons eligible for exemption from hunting licensing requirements on farmland to include the resident owner’s foster or stepchild, grandchild, foster or step-grandchild, parent and sibling.  Under current law only a child or child’s spouse are exempt from the requirements.  MARYLAND FARM BUREAU SUPPORTS H.B. 330.

H.B. 333 – Maryland Horse Industry Board – Sunset Extension and Program Evaluation – requested by MDA ENVIRONMENTAL MATTERS & WAYS & MEANS, 250 NHOB, Wednesday at 1pm.
This bill extends the authorization for the Maryland Horse Industry Board through 2016.  The bill also changes the inspection interval for licensed riding stables from 1 to  2 years.  The MD Horse Industry Board (at MDA) has annually licensed and inspected horse stables in MD for more than 35 years.  MARYLAND FARM BUREAU SUPPORTS H.B. 333.

H.B. 360 – Environment – Gasoline Containing Methyl Tertiary Butyl Ether – Prohibition – Delegate Sossi  ENVIRONMENTAL MATTERS, 250 NHOB, Wednesday at 1pm.
This bill bans MTBE as a gas oxygenate in Maryland as of January 1, 2009.  MD Farm Bureau believes that ethanol is a safe and effective oxygenate that can and should be used in place of MTBE to improve air quality and demand for agricultural products in Maryland.  MFB SUPPORTS H.B. 360.

 H.B. 459 – MALPF – Easements – Funds & Released Lots – Delegate Stocksdale  ENVIRONMENTAL MATTERS, 250 NHOB, Wednesday at 1pm
This bill increases the amount of funding that a county can have matched by the state for an approved agland preservation program from $1 million to $2 million.  The bill also designates the local ag preservation advisory board and the local planning and zoning authority to make any recommendations concerning increasing a building lot size from 1to 2 acres on a case by case basis.  MARYLAND FARM BUREAU SUPPORTS H.B. 459.

H.B. 490 – MALPF – District Agreement – Time Required – Delegate Stocksdale  ENVIRONMENTAL MATTERS, 150 NHOB
This bill allows a county government to establish the length of an agricultural district for the purposes of applying to sell and easement to the Maryland Agland Preservation Foundation.  Under current law, a property must stay in an agricultural district for 5 years – during which the landowner may not develop the property and may offer to sell and easement to MALPF.  The bill allows each county to select a district length from 1 to 10 years.  MARYLAND FARM BUREAU SUPPORTS THE CONCEPT OF LETTING COUNTIES DECIDE DISTRICT TERMS, BUT IS CONCERNED THAT 10 YEARS IS TOO LONG.

H.B. 495 – Agriculture – Improper Transport of Horses – Prohibitions – Delegate Jennings  ENVIRONMENTAL MATTERS, 250 NHOB, Wednesday at 1pm.
This bill would set certain requirements on vehicles/trailers used to transport horses to ensure the safety of the animal during transportation.  The trailer must be specifically manufactured for transporting horses and consist of only one level and there must be enough head room for the horse to fully extend its head upwards without touching the roof.  It also sets standards for when the vehicle must have ramps leading into it and at what angle those ramps must be.  A first violation would result in a civil penalty of $500 per horse and $1,000 per horse for any second or subsequent violations.  FOR INFORMATION ONLY

H.B. 558 – Bay Restoration Fund – Failing Onsite Sewage Disposal Systems – Eligibility for Funds – Delegate Glassman ENVIRONMENTAL MATTERS, 250 NHOB, Wednesday at 1pm
The bill authorizes the use of Bay Restoration Fund monies to repair or replace a failing onsite septic system.  The bill does not require the use of nitrogen removal technology as a condition for financial assistance.  Current law allows only for the use of nutrient removal technology or other best available technology, which is significantly more expensive to install and maintain than a traditional system.  The bill also sets a priority for low income users.  MFB SUPPORTS H.B. 558.

H.B. 883 - Procurement - Percentage Price Preference - Locally Grown Foods – Delegate Morhaim  HEALTH & GOVERNMENT OPERATIONS, 240 NHOB

The Senate Judicial Proceedings Committee will hold hearings at 1pm in room 2 East Miller Senate Office Building on eminent domain bills.  Maryland Farm Bureau will testify in support of the 5 concepts listed in the position statement above under Tuesday’s House hearing schedule.  Some of the bills being heard in Senate include:

S.B. 3 – Real Property – Condemnation – Procedures and Compensation – Senator DeGrange
This bill establishes that it is the intent of the General Assembly that a viable business or farm operation should be preserved whenever reasonable practicable and should not be acquired by condemnation for urban renewal or economic development purposes unless other alternatives are shown not to be reasonably practicable.  When it is necessary to take a business or a farm, the bill sets up a rigid set of disclosures, analysis and compensation that must be followed.  The bill requires that every effort be made to include the business or farm in the development plan.  If relocation is necessary funding for actual value, relocation costs and loss of “goodwill” relationships is mandated.

S.B. 9 – Eminent Domain – Public Use – Senator Astle
This bill mandates that private property may only be taken using eminent domain for “public use.”  The bill defines “public use” as the possession, occupation and enjoyment of land by the general public or a government entity.  The definition includes use by a public utility and acquisition to cure a concrete harmful effect of the current use of the land.  The bill specifies that “public use” does not include the public benefit of economic development, including an increase in tax base, tax revenue, employment or general economic health.

S.B. 35 – Baltimore County – Eminent Domain – Limitation on Condemnation Authority – Senator Harris
This is a constitutional amendment to limit the use of condemnation authority in Baltimore County only.  It is identical to the H.B. 619 listed above under Tuesday except that it applies to Baltimore County instead of Harford County.  The crossfile to H.B. 619 – S.B. 155 is also being heard in the Senate. 

S.B. 173 – Property Protection Act of 2006 – Senator Stoltzfus
This is a constitutional amendment to prohibit the condemnation of private property for economic development purposes that include urban renewal, community revitalization or redevelopment, attracting new or expanded businesses, job creation or generating tax revenue.  If passed, it will be presented to voters for approval in November 2006.  It applies statewide.

S.B. 419 – Eminent Domain Reform Act – Senator Frosh
This bill defines “economic development” and then sets up procedures for condemning property for economic development purposes.  The bill defines “economic development” as taking private property without the consent of the owner for the purpose of increasing tax revenue, tax base, employment or general economic health.  The bill requires a condemning authority to demonstrate that the acquisition of the property is necessary to carry out an economic development plan and that the public purpose for which the property is being acquired could not be achieved practicably through private means.  If challenged in court, the condemning authority would have to prove the public purpose and the necessity for the taking by clear and convincing evidence.   The bill also sets up a process for determining compensation for the value of the property and the “goodwill” that will be lost by relocating a business.  The bill provides for legal fees for the defendant if the defendant wins on the issue of the right to condemn or if the plaintiff wins and the court finds that the property is worth more than 10% over the value originally offered by the plaintiff. 

S.B. 813 – Real Property – Condemnation – Right to Repurchase Condemned Property – Senator Stoltzfus
This bill allows the property owner or his or her heirs to petition to repurchase property taken through condemnation if the condemning authority has not put the property to public use within 5 years.  The repurchase price shall be the same price paid for the property when it was condemned.

S.B. 485 – Maryland Building Performance Standards – Exemption in Certain Counties for Agricultural Buildings
Use for Tourism – Senator Hooper  ED., HEALTH AND ENVIRON. AFFAIRS, 2 West Miller, Friday at 1pm
This bill would exempt Charles, Dorchester, Harford, Prince George’s, and Talbot counties from the Maryland Building Performance Standards for the construction, modification, or alteration of agricultural buildings used for tourism.  The bill defines an agricultural building as a structure designed and constructed to house farm implements, hay, grain, poultry, livestock, or other horticultural products.  Any existing agricultural building used for tourism is not to be considered a “change of occupancy” that would requires a building permit, as long as the subordinate use is in accordance with limitations set forth in regulations adopted by the Department of Housing and Community Development (DHCD).  An agricultural building used for tourism shall be structurally sound and in good repair, but it would not need to comply with requirements in current standards for bathrooms, sprinkler systems, and elevators, as well as, any other requirements of the standards or other building codes set forth in regulations adopted by the DHCD.  MARYLAND FARM BUREAU SUPPORTS S.B. 485.

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 .

Maryland Farm Bureau Action Request

Maryland Wineries and Grape Growers at Risk – Call Your Legislators to Seek Help!
A recent ruling by the state Comptroller’s office puts 22 Maryland wineries and more than 200 grape growers in Maryland in serious jeopardy.  The ruling, which will take effect on March 31, 2006, will prohibit the wineries from selling their products directly to retailers and restaurants.  Prior to this ruling, Maryland wineries were permitted to deliver directly – which allowed them to avoid the expense of going through a wholesale distributor.  This policy was put in place to help develop this fledgling industry. 

The Comptroller’s ruling is the result of a lawsuit filed by Pennsylvania wineries that were not permitted to come into Maryland and deliver directly to retailers and restaurants.  The disparity violates federal interstate commerce rules.   The Maryland Wineries Association and the Maryland Farm Bureau believe that a better solution would be to allow the wineries to continue to deliver directly and to allow out of state wineries the same access.  A bill has been introduced in the House and Senate to do this.

S.B. 812/ H.B. 1122 – Alcoholic Beverages – Limited Wine Wholesaler’s License was introduced by Senator Mac Middleton and Delegate Virginia Clagett.  The bill will allow the wineries to purchase a wholesaler’s license for $50 per year.  The license would be limited in that a winery would only be allowed to deliver its own wine directly to a restaurant or retailer and it would not be able to ship it through a third party such as UPS or  Federal Express.  We believe this bill will bring back the status quo and help keep Maryland wineries in business.

The bill is scheduled for a hearing in the House Economic Matters committee on Monday, March 6^th and in the Senate Education Health and Environmental Affairs Committee on Tuesday, March 7^th. 

Passage of S.B. 812 and H.B. 1122 will be an uphill battle for the wineries and the farmers who grow their grapes.  The wholesalers for the alcoholic beverage industry are mounting a big fight to prevent the small wineries in Maryland from continuing to operate as they have in the past.  Please call your legislators and ask them to support the Maryland wineries and grape growers.  Make the following points: 

●  More than 200 farmers grow grapes for the Maryland wine industry.  In fact, in places like southern Maryland where farmers are phasing out of tobacco and into new crops that can be grown on small acreage, grapes are a viable option.  The Tri-County Council of Southern Maryland is cost-sharing with local farmers the cost of investing in grape vines. 

●  Many grape growers are choosing this crop on small acreage farms just on the fringe of more suburban areas.  Grapes are an excellent option over more development in these areas.

●  This bill is targeted only at small wineries.  As wineries get larger and produce more product they will use wholesalers.  Until then, they need the business development assistance provided by S.B. 812 & H.B. 1122.

You can call your representatives in the Maryland General Assembly at 1-800-492-7122 (toll free).   You can also email your legislators by logging onto to the following site and scanning down to find your elected officials: http://mlis.state.md.us/cgi-win/mail32.exe  .   Urge your Delegates and Senators to make contact with members of the House Economic Matters Committee and the Senate Education, Health and Environmental Affairs Committee to let them know how important this issue is for farmers.