Legislation
– 2006 Legislative Session
Relating to Agricultural Land Preservation Issues
Task Force recommended
legislation is indicated with an asterisk (*).
Task Force
inspired legislation (at least some part of the bill) is indicated with a cross
( ).
House of Delegates
legislation only:
Legislative result: successful: passed with amendments by the House of
Delegates and by the Senate; signed by the Governor.
This legislation would grant
explicit authority to MALPF's Board of Trustees to review and approve program
participants' requests to relocate dwellings on Foundation property as long as
the new location does not interfere with the property's agricultural use. As a condition of approval, the
existing dwelling must be demolished or, under exceptional and compelling
circumstances, converted to an agricultural use integral to the farming
operation.
Legislative
result: unsuccessful: the bill received an unfavorable report
from the Environmental Matters Committee of the House of Delegates; the
substance of the bill passed in HB 460 and HB 769.
This bill would increase the cap on
the maximum amount the State can provide as a match in the MALPF matching funds
program from $1 million to $2 million and increases county discretion in
approving lot sizes greater than one acre (to a maximum of two acres) when
landowners exercise the rights they retain under a MALPF easement for an
owner's, child's, or unrestricted lot.
Legislative
result: successful: passed with amendments by the House of
Delegates and the Senate; signed by the Governor.
This
legislation would authorize MALPF to waive specified restrictions governing the
maximum size of released lots of one acre, so that the maximum lot size could
be two acres if: (1) MALPF
receives a recommendation to allow a maximum lot size of more than one acre
from the county agricultural preservation advisory board and the planning and
zoning authority of the jurisdiction where the land is situated; and (2) MALPF
makes a determination that a lot size greater than one acre will not interfere
significantly with the agricultural use of the land under easement. Previously, exceptions to one-acre lots
were made only if county regulations required a lot to be larger than one acre
and/or if septic requirements could only be met with a lot greater than one
acre.
Legislative
result: unsuccessful: the bill received an unfavorable report
from the Ways and Means Committee of the House of Delegates.
This bill would creates a subtraction modification under the
State income tax for income derived from the sale of agricultural easements to
the Maryland Agricultural Land Preservation Foundation (MALPF), the Rural
Legacy Program, or Program Open Space.
In addition, any income received from these agencies for the purpose of
preserving agricultural land may also be exempted from State taxation.
Legislative
result: unsuccessful: the bill received an unfavorable report
from the Environmental Matters Committee of the House of Delegates; substance
of the bill was included in HB 769.
This
bill would repeal the five-year time requirement to which a landowner must
agree to be eligible for inclusion into an agricultural preservation district
under the Maryland Agricultural Land Preservation Program. Also, this bill provides that, in the
ordinance that establishes a district, the county governing body must establish
the length of time required for a district agreement from one to ten years.
Legislative
result: successful: passed by the House of Delegates and
the Senate with different amendments; the House of Delegates concurs with the
Senate amendments; bill signed by the Governor.
This
legislation establishes a 10-member Maryland Advisory Committee on Historic
Agricultural Structure Preservation and creates a new Barn Preservation Fund to
provide grants to preserve historic barns and agricultural structures.
Legislative
result: successful: passed by the House of Delegates and
the Senate with different amendments; the House of Delegates concurred with the
Senate amendments; bill signed by the Governor.
This legislation would
decree that on or
before January 31, 2007, MALPF shall submit to the General Assembly, in
accordance with ¤ 2-1246 of the State Government Article, a report outlining
procedures, laws, and regulations that the Foundation determines to be
necessary in order to implement the elimination of agricultural districts from
the Maryland Agricultural Land Preservation Program. The report would include: (a) an implementation timeline, and (b) statutory language
for the repeal and reenactment of ¤¤ 2-509 and 2-510 of the Agriculture
Article, including the removal of the requirement for districts from the
easement application process to become effective July 1, 2007, and the
elimination of districts from the program to become effective June 30, 2008. Also, this
legislation would increase the maximum State match for MALPF's matching funds
program from $1 million to $2 million. Further,
this legislation would change the voluntary commitment required of program
applicants not to develop from five years statewide to three-to-ten years, with
the commitment length determined by individual counties. And additionally, this legislation would
change the provision that keeps applicants who reject full offers from
reapplying to the Program for two years to allow those applicants to reapply
immediately to the Program to sell their easements. However, an applicant who rejects an easement offer from the
Foundation for two consecutive years could not then reapply for the following
two consecutive years.
Legislative
result: unsuccessful: the bill received an unfavorable report
from the Environmental Matters Committee of the House of Delegates.
This bill would (1) increase the
maximum number of lots available on a property from three to six, (2) release
these lots as unrestricted lots that could be developed for commercial sale,
(3) for each unrestricted lot developed, reduce by one the landowner's right to
an owner's or child's lot, (4) reduce the density at which lots could be
developed from one lot for the first full twenty acres and one lot each for the
next two full fifty acre increments to a density of one lot per fifty acres,
and (5) would subject the location of the lots to be subdivided to the approval
of the local agricultural advisory board or MALPF.
Legislative
result: unsuccessful: the bill received an unfavorable report
from the Environmental Matters Committee of the House of Delegates.
This bill would prohibit MALPF from purchasing an easement
in a zoning district in which the county grants "bonus density." This bill also would prohibit a county
from using specified MALPF funds for the purchase of an easement in a zoning
district in which the county grants bonus density. Furthermore, this bill would prohibit funds under the Rural
Legacy Program within the Department of Natural Resources (DNR) from being used
for the purchase of an easement or the acquisition of property in a zoning district
in which the county grants bonus density. "Bonus density" is allowing, after the purchase of
an easement on a property, more subdivisions on an adjacent property than would
otherwise be allowed under the zoning ordinance for the adjacent property.
Legislative
result: unsuccessful: the bill received an unfavorable report
from the Environmental Matters Committee of the House of Delegates.
This
bill would provide that development rights transferred under a transfer of
development rights (TDR) program may not be transferred to a zoning district
for which the local legislative body sanctions preservation easements.
Legislative
result: unsuccessful: the bill received an unfavorable report
from the Environmental Matters Committee of the House of Delegates.
This bill, similar to HB 002 and SB
005, would establish a Priority Preservation Area (PPA) certification program
to be evaluated and certified by MALPF and the Maryland Department of Planning
(MDP). Unlike the program set up
in the agricultural stewardship bills, this program would be freestanding, not
made a required (or voluntary) element of a county's comprehensive land-use
plan. Also, unlike the program set
up in the agricultural stewardship bill, this certification would directly
affect the allocation of existing funds to MALPF's county partners. Beginning in 2008, counties with certified
PPAs would receive an amount three times the general allocation of counties
with uncertified PPAs. The term of
certification would be two years, parallel to the existing certification
program for local agricultural land preservation programs.
Legislative
result: unsuccessful: the bill received an unfavorable report
from the Appropriations Committee of the House of Delegates.
This
proposed bill would alter provisions of Chapter 473 of 2005 to: (1) require the
repayment of State transfer tax revenues transferred to the General Fund for
fiscal year 2004 and subsequent years, thereby requiring an additional $292.1
million to be repaid; and (2) repeal as obsolete a provision that provides that
the repayment would only take effect once the Transportation Trust Fund has
been fully repaid. However, the bill would not otherwise modify the current
repayment schedule. State transfer
taxes fund different land conservation programs, including MALPF, Program Open
Space, Rural Legacy, and the Heritage Conservation Fund.
Legislative
result: unsuccessful: the bill was not reported out of the
Ways and Means Committee of the House of Delegates.
This
proposed bill would allow, subject to a county governing body's approval, the
State income tax credit for preservation and conservation easements to be
applied against a county income tax.
Legislative
result: unsuccessful: the bill was not reported out of the
Ways and Means Committee of the House of Delegates.
This
proposed bill would expand the existing Preservation and Conservation Easement
tax credit by making the credit refundable. The amount of refundable credit claimed in each year would
not exceed $5,000, and any excess amount of credit would be carried forward as
provided under current law.
Senate legislation
only:
Legislative
result: unsuccessful: the bill received an unfavorable report
from the Senate Budget and Taxation Committee.
The bill would allow property owners
who convey an easement to MALPF or the Maryland Environmental Trust (MET) to
receive a refund for any unused portion of their allowable State income tax
credit. The amount of refundable
credit claimed in each year would not exceed $5,000. Any excess amount of
credit would be carried forward as provided under current law.
Legislative
result: unsuccessful: the bill passed with amendments in the
Senate, but was not reported out of the Ways and Means Committee of the House
of Delegates.
This
bill would allow, subject to the approval of a county's governing body, an individual
to claim a credit against the county income tax for an easement conveyed to MALPF
or the Maryland Environmental Trust (MET). The credit allowed under this section may not exceed the
lesser of the State income tax for that taxable year or $5,000, though a
county's governing body may determine the exact amount of a credit and place
any further limitations that it deems appropriate. In addition, a county may provide for a credit against the
county income tax for an easement conveyed to the Department of Natural
Resources (DNR) that is donated in full under the Rural Legacy Program or
Program Open Space.
House of Delegates and
Senate legislation (cross-listed bills):
Senators
Miller, Hollinger, Middleton, Brinkley, Colburn, Conway, Dyson, Klausmeier,
Garagiola, Brochin, and Munson.
This legislation would
require counties to develop a Priority Preservation Area (PPA) Element and to
incorporate it into each county's comprehensive land-use plan. The PPA must be capable of supporting
profitable agricultural activities, be governed by local policies to stabilize
the land base to limit development, and be large enough to support the kind of
agricultural enterprises that the county is seeking to preserve. MALPF and the Maryland Department of
Planning (MDP) must review and certify the PPA. Each comprehensive plan revision and/or update is subject to
PPA certification renewal.
Effective July 2009, counties must include a Priority Preservation Area
Element when applying for certification and recertification of effective county
agricultural land preservation programs.
By December 31, 2006, MALPF and MDP must jointly adopt regulations for
the administration of county priority preservation area certification. This legislation also states the
intent of the General Assembly for the Governor to include in the budget $20
million from the General Fund as well as MALPF dedicated funding from Special
Funds. These additional revenues
would fund the Critical Farms Program, the Installment Purchase Agreement
Program, the Priority Preservation Areas Program, and/or the regular easement
acquisition program. MALPF shall
distribute funds among these programs to meet the programs' demand.
HB 150/SB 110 – Budget Bill
(Fiscal Year 2007)
Sponsors: The
Speaker of the House of Delegates (by request of the Administration).
The
President of the Senate (by request of the Administration).
Department position: support the
Administration's position.
Legislative result: successful: HB 150 was not reported out of the
House Appropriations Committee; SB 110 passed with amendments by the Senate and
then passed with incompatible amendments by the House of Delegates; agreement
was reached in conference committee; SB 110 became law without the Governor's
signature.
This Administration legislation composes one of
three omnibus bills required under the Governor's budget plan. The budget bill for FY 2007 is created
to make the proposed appropriations contained in the State Budget for the
fiscal year ending June 30, 2007, in accordance with Article III, Section 52 of
the Maryland Constitution; and generally relating to appropriations and
budgetary provisions made related to that section. MALPF funding appropriations returned to normal for FY 2007;
no bond bills were issued on behalf of the MALPF program. Under this legislation, MALPF was
appropriated $92,166,792 from all sources, less $2,415,000 taken from MALPF
appropriations and given to the Tri-County Council for land preservation
projects, for a total of $89,751,792 for both program operation expenses and
the purchase of easements.
Legislative
result: unsuccessful: HB 236 not reported out of the Ways and
Means Committee of the House of Delegates; SB 658 not reported out of the
Budget and Taxation Committee of the Senate.
These
cross-listed bills would alter the determination of the Maryland estate tax by
excluding from the gross estate's value the value of the real property
that: (1) is subject to either a
perpetual agricultural preservation easement that has been granted to MALPF or
a MALPF-approved local agricultural land preservation program, and (2) passes
from the decedent to or for the use of a specified relative of the decedent.
Senators
Hogan, Astle, Britt, Brochin, DeGrange, Della, Dyson, Exum, Forehand, Frosh,
Garagiola, Giannetti, Gladden, Green, Grosfeld, Hollinger, Hughes, Jimeno,
Klausmeier, Kramer, Lawlah, McFadden, Middleton, Munson, Pinsky, Ruben, Stone,
and Teitelbaum
Legislative
result: unsuccessful: HB 815 received an unfavorable report
from the Appropriations Committee of the House of Delegates. SB 493 was never reported out of the
Budget and Taxation Committee of the Senate.
These
cross-listed bills would accelerate, from fiscal years 2008 to 2012, the
provisions established by Chapter 473 of 2005 regarding the repayment of State
transfer tax revenues transferred to the General Fund after fiscal year 2005.
Senators
Dyson, Forehand, Hughes, Jimeno, and Stone.
Legislative result: unsuccessful: HB 1273 withdrawn from the
Environmental Matters Committee of the House of Delegates; SB 359 received an
unfavorable report from the Judicial Proceedings Committee of the Senate.
These cross-listed bills
would require that, when property encumbered by a conservation easement or an
agricultural easement is sold, the deed transferring ownership must (1)
reference the liber and folio where the easement is located, (2) contain a
description of the grantor and grantee, and (3) contain the date of the
reference deed.
Senators
Dyson, Currie, Hogan, Lawlah, Munson, Brinkley, DeGrange, Jones, Kasemeyer,
Kramer, McFadden, Ruben, Schrader, and Stoltzfus.
Legislative result: successful: HB 1275 was passed with amendments by
the House of Delegates and the Senate; HB 1275 was signed by the Governor; SB
361 was passed with amendments by the Senate and the House; SB 361 was vetoed
by the Governor as duplicative.
This legislation establishes conservation property as a separate
subclass of real property and provides that it be valued at a rate equivalent
to the highest rate used for agricultural use land. This legislation says that conservation property is not
required to be actively used for farm or agricultural purposes to be eligible
for valuation. This legislation is
primarily directed at including pre-1986 donated Maryland Environmental Trust
(MET) easements under the 1986 changes in State tax laws. By its wording, it would also apply to
pre-1986 MALPF easements.
Legislative
result: unsuccessful: HB 1640 not reported out of the Environmental
Matters Committee of the House of Delegates; SB 1013 not reported out of the Education,
Health, and Environmental Affairs Committee of the Senate.
These
cross-listed bills would require local jurisdictions exercising planning and
zoning authority to develop growth boundaries and include them in their local
comprehensive plans. This
legislation would also establish a process to address disagreements regarding
proposed growth boundaries, with the Maryland Department of Planning (MDP)
serving as an arbitrator. Before a
local jurisdiction could approve development of land outside established growth
boundaries, the local jurisdiction would have to submit the plan to MDP for
approval. This legislation would,
further, authorize a county and a municipal corporation to enter into a joint
planning agreement (JPA) to coordinate future growth both inside and outside
established growth boundaries.