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

No. 6  2/22/07

A bill introduced this week by the Chairwoman of the Environmental Matters Committee, Delegate Maggie McIntosh, would raise up to $45 million per year for agricultural conservation programs. The bill, H.B. 1220, can be viewed at the following link: http://mlis.state.md.us/2007RS/bills/hb/hb1220f.pdf.
The bill assesses a fee on new impervious surfaces in the state at the time a building permit is requested. The funds (up to $130 million per year) would be used for programs to protect the Chesapeake Bay from stormwater runoff, to help local governments address planning needs, to conduct agricultural research, to incentivize workforce housing, and to implement agricultural best management practices. The fee is $2.00 per square foot for new impervious surfaces outside a Priority Funding Area (PFA or designated growth area) and 25 cents per square foot inside a PFA. The fee can be reduced through mitigation projects. One of the goals of the bill is to encourage growth into the designated growth areas and to discourage development pressure in the rural and farm areas. The bill exempts farm buildings from the impervious surface fee. Maryland Farm Bureau is working on an amendment to clarify the exemption to cover all farm buildings, lanes, structures and other improvements installed as part of a farm operation. Maryland Farm Bureau supports the concept of providing new funds to the conservation programs available to farmers. We also support the effort to relieve development pressure on farmland. We are, however, still analyzing the impact of the bill on the overall rural community. We are also working to make sure the language in the bill is consistent with our policy. Farm Bureau members with comments and suggestions about the bill can email Val Connelly at valeriec.mdfb@erols.com.

Hearings and briefings next week include:

Tuesday, February 27, 2007

H.B. 544 – Income Tax – Credit for Cellulosic Ethanol Technology Research and Development – Delegate Ross
WAYS AND MEANS, 130 Taylor House Office Building at 1:00pm
This bill creates an income tax credit for expenses related to research and development of cellulosic ethanol technology. It would allow for an individual or corporation to claim an amount equal to 10% of the total funds expended for qualified research and development, but may not exceed $3,000 a year. If the credit exceeds the tax liability in a given year, it can be carried over into succeeding taxable years for up to 15 years or until the excess is used, whichever comes first. The bill authorizes a total of $3 million per year for this tax credit. Cellulosic sources of ethanol are essentially low-cost sources of biomass and can include corn stover (the stalks and residue left after harvest), grain straw, quick-growing tree varieties, and even municipal waste. The U.S. Department of Energy estimates that the cost of producing ethanol could be reduced by as much as $0.60 a gallon by 2015 with the use of cellulosic conversion technology.
MARYLAND FARM BUREAU SUPPORTS H.B. 544.

S.B. 498 Smart Growth – Priority Funding Areas – Rural Counties - Senator Brinkley
EDUCATION, HEALTH & ENVIRONMENTAL AFFAIRS, 2 West Miller SOB at 1:00pm
This bill defines “rural county” as it relates to “smart growth” funding procurement as a county in which a majority of the total acreage is devoted to farming or similar agricultural purposes. It also expands the definition of a priority funding area (PFA) that can be designated by a county’s governing body to include those areas of a rural county that have a population of less than 6,000 people and that are totally dependent upon groundwater sources for the their community water system. Under current law, areas designated as PFAs are eligible to receive state technical assistance and funding related to population growth. FOR INFORMATION ONLY

HB 49 - Communications Towers - Zoning and Other Regulatory Approval - Adjacent Local Jurisdiction – Delegate Oaks
ENVIRONMENTAL MATTERS, 250 Taylor House Office Building at 1:00pm   
This bill would prohibit the regulatory or zoning approval of a communications tower proposed for a location within 500 yards of another local jurisdiction without first satisfying the zoning and regulatory requirements of both jurisdictions. Approval would also be contingent upon a written statement from each jurisdiction verifying the proposed tower is compliant with all applicable requirements. This will increase the hurdles required to put up cell towers on private land. This is an emergency bill.
MARYLAND FARM BUREAU OPPOSES H.B. 49.

Wednesday, February 28, 2007

S.B. 442 – Property Tax – Agricultural Use Assessment – Migrant Labor Camps – Senator Colburn
BUDGET AND TAXATION, 3 West Miller SOB at 1:00pm
For property tax purposes, this bill will allow property used as a Migrant Labor Camp to qualify to be valued and assessed at the agricultural use value. A “Migrant Labor Camp” is defined as “a structure, building, or converted building; a tent; barracks; and a vehicle, trailer or motor home.” To qualify for the ag use assessment, the property owner must hold a valid permit to operate the migrant labor camp issued by the Department of Health and Mental Hygiene. Before issuing the permit, the DHMH inspects all housing facilities subject to the permit. Due to the seasonal nature and limited time frame for harvesting fresh market fruits and vegetables, many Maryland farmers employ (and provide temporary housing for) migrant laborers. MARYLAND FARM BUREAU SUPPORTS S.B. 442.

H.B. 974 – Agricultural Land Preservation – Easements – Future Dwelling House – Del. Stocksdale
ENVIRONMENTAL MATTERS, 250 Taylor House Office Building at 1:00pm
This bill allows a landowner who is selling an easement to the Maryland Agland Preservation Foundation to exclude a 1 acre parcel for a future dwelling house without actually having to pay for the cost of the survey upfront. Instead, all parties would agree that a 1 acre parcel will be developed in the future and the exact location will be mutually agreed upon between MALPF and the owner at the time the landowner chooses to build. The landowner would have the 1 acre parcel deducted from the value of the easement up front. The bill also stipulates that the lot could not be subdivided from the farm. According to MALPF this process is already available through the use of an unrestricted lot in an easement negotiation.
FOR INFORMATION ONLY

H.B. 1041 – Maryland Agricultural Land Preservation Fund – Grants to Counties – Del. Rudolph
ENVIRONMENTAL MATTERS, 250 Taylor House Office Building at 1:00pm
This bill would allow the Maryland Agland Preservation Foundation to provide grants to counties to facilitate the purchase of easements, subject to conditions jointly agreed to by the Foundation and the county. If passed, the bill would streamline the use of Installment Purchase Programs and would allow the farmer selling an easement to choose between a state or local IPA. The bill would also facilitate the use of local bond bills to purchase a large number of easements now and then use future funding from the state to service the debt rather than buy new easements. MALPF may submit amendments to clarify that the local bonds may not be secured by future MALPF funding.
MARYLAND FARM BUREAU SUPPORTS H.B. 1041.

H.B. 906/ S.B. 496 – Procurement – Public Schools and Facilities – Preference for Locally Grown Foods – Delegate Lawton / Senator Raskin

HEALTH AND GOVERNMENT OPERATIONS, 240 Taylor House Office Building at 1:00pm
EDUCATION, HEALTH AND ENVIRONMENTAL AFFAIRS, 2 West Miller, Friday 2/2/07 at 1pm
This bill encourages each county Board of Education to purchase locally grown food products for schools. The bill allows the Board to accept a bid for the purchase of food that is 5% above the lowest bid if the food item is grown in Maryland.
MARYLAND FARM BUREAU SUPPORTS H.B. 906 and S.B. 496

H.B. 1035 – Maryland Tort Claims Act – Employee or Official of the MARBIDCO – Del. Rudolph
JUDICIARY, 100 Taylor House Office Building at 1:00pm
This bill would protect an employee of the MARBIDCO from being sued for actions taken as a state employee. To do this the bill adds MARBIDCO to the list of state entities that are considered to have “State personnel” for the purposes of protection under the Maryland Tort Claims Act.
MARYLAND FARM BUREAU SUPPORTS H.B. 1035.
 

Thursday, March 1, 2007

H.B. 465 – Real Property – Conservation Easements – Notification of Buyers – Delegate James
ENVIRONMENTAL MATTERS, 250 Taylor House Office Building at 1:00pm
The bill requires the seller of property to notify a potential buyer of the existence of all conservation easements encumbering the property. The seller must provide the potential buyer with copies of the easement prior to entering into a contract or within 20 days after signing a contract. If the potential buyer did not have copies of all easements 5 days prior to signing a contract, the buyer may cancel the contract within 5 days of receiving the copies of the easements. If the sale proceeds, the buyer must notify the easement holder of the change in ownership within 30 days of closing.
MARYLAND FARM BUREAU SUPPORTS H.B. 465.

H.B. 73 – Maryland Estate Tax – Family Property Protection Act – Delegate Krebs

WAYS AND MEANS, 130 Taylor House Office Building at 1:00pm
This bill increases the unified credit used to determine Maryland estate tax from $1 million to $2 million. (The 2007-2008 federal exemption is $2 million. In 2009 the federal exemption will increase to $3.5 million) The bill also repeals a requirement that the tax be determined without regard to the deduction for state death taxes under federal estate tax. The changes apply to decedents dying after December 31, 2006.
MARYLAND FARM BUREAU SUPPORTS H.B. 73.

H.B. 516/ S.B. 558 – Local Governments – Impact Fees and Building Excise Taxes – Workforce Housing Exemption – Delegate Barve / Senator Garagiola

WAYS AND MEANS, 130 Taylor House Office Building at 1:00pm
EDUCATION, HEALTH AND ENVIRONMENTAL AFFAIRS, 2 West Miller, Friday 2/2/07 at 1pm
This bill authorizes a county that imposes a development impact fee or building excise tax to grant exceptions from or credits against the development impact fee or building excise tax for developments that include workforce housing. Workforce housing would be defined by the governing body of the county. FOR INFORMATION ONLY

H.B. 633 – Maryland Estate Tax – Exclusion of Family Farm Subject to Agricultural Preservation Easement – Delegate Glassman
WAYS AND MEANS, 130 Taylor House Office Building at 1:00pm
This bill excludes from the Maryland Estate Tax the value of any real property that is subject to a MD Agland Preservation Foundation (MALPF) easement or a county Agland Preservation easement when it passes from the decedent to a spouse, parent, grandparent, child, spouse of a child, lineal descendant of a child or a brother or sister. MARYLAND FARM BUREAU SUPPORTS H.B. 633.

FARM BILL BUDGET EXPECTED TO DECREASE
---Attendees at the National Ethanol Conference heard from top government officials regarding the 2007 farm bill. House Agriculture Committee Chairman Rep. Collin Peterson, (D-Minn.) said that projected spending in the farm bill would be about 45 percent less than last year because of Congressional Budget Office projections for high corn, soybean and other crop prices.

The Bush administration’s farm bill proposal would cost taxpayers about $2 billion a year less than the current farm law, mainly because of the expected increase in crop prices. However, spending on conservation programs would grow by $7.8 billion. Peterson said he wants to increase conservation spending and put up to $6 billion a year into research for renewable fuels, primarily cellulosic ethanol made from corn leaves and other plants. Adapting dried distillers grains so it can be more readily consumed by livestock will also be a focus of research, Peterson said. He said he favored taking government loan guarantee programs for building renewable energy plants out of the Department of Energy and moving them to the Department of Agriculture.

CONGRESSMAN GILCHREST’S AGRICULTURAL TOWN MEETINGS:
If you live in the 1st Congressional District, please try to attend one of Congressman Gilchrest’s Agriculture town meetings to discuss the upcoming Farm Bill re-write. Next week’s meetings are:

Monday, February 26th at 8:30am at the Linkwood-Salem Volunteer Fire Co.
Monday, February 26th at 7:00pm at the USDA Service Center in Princess Anne
Tuesday, February 27th at 8:00am at the Cecilton Volunteer Fire Company
Tuesday, February 27th at noon at the MD Cooperative Extension office in Harford Co.

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 .