STATE
Start of Session
The 426th Maryland Legislative Session begins Wednesday, January 14, 2009. The General Assembly consists of 47 Senators and 141 Delegates elected from 47 districts across the State. 96 pre-filed Senate bills have been filed and are available for viewing on the Maryland General Assembly’s website http://mlis.state.md.us/, while 50 House bills have been posted online so far.
Several high-profile bills have already been introduced in the Montgomery County Delegation. These include a “just cause” eviction bill empowering the tenant to unilaterally renew an expiring lease, irrespective of the property owner/management company’s intentions; and a bill imposing a new tax on an indemnity deed of trust (aka an "indemnity mortgage") just as if the guarantor had primary liability for the guaranteed loan.
The economic recession will also play a large role in the legislation introduced during the upcoming Session. Senate President Thomas V. Mike Miller, Jr. (D) and House Speaker Michael E. Busch (D) have already said it is unlikely that any bill imposing a new tax or tax increase would pass in this year’s session.
What is more likely to be enacted is a series of budget cuts aimed at the almost $2 billion structural deficit. While Governor Martin O’Malley (D) recently signed an Executive Order establishing a state employee furlough and salary reduction plan that will save over $34 million in FY ’09, the Board of Revenue says the State must cut an additional $415 million in order to balance the current budget; then there is FY2010 to deal with. Those are the biggest—and unavoidable—tasks the 2009 General Assembly must take on.
As always, AOBA will closely monitor all bills introduced during Session that affect the apartment and office building industries, while also scrutinizing the budget processes of the State, Montgomery and Prince George’s counties.
MONTGOMERY COUNTY
Leggett Introduces Eleven-Point Package to Aid Business
In mid-December, Montgomery County Executive Isiah Leggett (D) released an eleven-point plan designed to bolster local business and job retention. The multifaceted plan requires the County to increase purchasing of goods and services, delays certain effective dates of new laws that substantially impact business, allows for the deferral of permitting fees and impact taxes, and extends expiration periods for certain permits and applications. The program also requires an economic impact analysis on business for all proposed legislation and regulations. Several County Councilmembers, including Council President Phil Andrews (D), Nancy Floreen (D), George Leventhal (D) and Duchy Trachtenberg (D) have voiced their support for Leggett’s proposal.
Some details of the Plan’s Eleven Points:
- Increase Local, Small Business Reserve Program (LSBRP) gross annual sales thresholds for local small businesses in the wholesale, retail and services sectors to $5 million from the current levels of $2 million for wholesale businesses or $2.5 million for retail goods and non-construction services, and to $14 million from $7 million for construction services and manufacturing. Increase the required percentage of LSBRP participation in annual contracting from the present level of 10% to 20%. Create a Local Business Networking Forum and hold small business fairs to provide networking opportunities for small businesses to connect with potential partners.
- Generally, delay for up to 18 months the effective dates of new legislation and regulations having a substantial economic impact on business.
- Allow, upon request, deferral of payment of permitting fees and impact taxes for a period of up to twelve months from their current due date.
- Increase permit application expiration period to eighteen months for those permits associated with new residential and commercial construction; increase expiration period for inactive building permits to twelve months; extend the validity period for existing Adequate Public Facility reviews from five (5) years to seven (7) years.
- Provide an economic and fiscal impact analysis as part of any legislation or regulatory change. The analysis must include an assessment of the impact on both the County and the parties being regulated.
County Council Elects New President and Vice President
The Council has elected Councilmember Phil Andrews (D - District 3) to serve as Council President and Councilmember Roger Berliner (D – District 1) was elected to serve as Council Vice President. Both Councilmembers’ elected leadership positions have a term of one year; Mr. Berliner’s election positions him to become Council President a year from now.
In addition to serving as President of the Council, Mr. Andrews, who has been on the Council for ten years, is Chair of the Public Safety Committee and also sits on the Education Committee.
Throughout 2008, Councilmember Berliner has focused on the County’s efforts to "go green." He sponsored the seven bills passed by the Council that address building energy efficiency, renewable energy and environmental sustainability. Mr. Berliner serves on the Council’s Health and Human Service Committee and the is the Lead Member for Energy and Environment on the Transportation, Infrastructure, Energy and Environment Committee.
PRINCE GEORGE’S COUNTY
AOBA Wins Major Court Decision Against County
Just in time for the holidays, the Maryland Court of Special Appeals ruled against Prince George’s County on three of four issues the County had raised in appealing an earlier AOBA trial court victory that had found the County in violation of the Maryland Public Information Act (MPIA).
In early 2005, County Executive Jack Johnson took to the airwaves, claiming that crime statistics showed 22 apartment buildings were responsible for tens of thousands of calls for police service and disproportionately burdening County public safety resources. Up for reelection and facing a crime problem that had undeniably worsened on his watch, Johnson loudly alleged that the properties on his "Action List" were "breeding grounds for violent crime" and warned that the owners had to make substantial improvements or "we will shut you down."
AOBA doubted that Johnson had the goods. In July 2005, we filed a detailed MPIA request for the County records and documents that would back up the claim. Some of the questions we had were:
- Did the County police, in fact, actually respond to every single call being cited in the County Executive’s information?
- How long did it take for County police to respond to each call?
- How many of the calls actually related to alleged violent crimes?
- How many were multiple calls about the same occurrence because of slow police response?
- How many of the calls came from tenants?
- How many of the calls came from housing providers?
AOBA filed suit in September 2006, after the County had stonewalled for a year. This was followed by another year of mostly stonewalling; as the trial date approached, the County grudgingly produced a few records, and those documents offered little persuasive evidence of the County Executive’s earlier claims. At the December 2007 trial, the judge found for AOBA, ordering the County to 1) produce documents, 2) pay our attorney fees and 3) pay $5,000 punitive damages to AOBA for every day of further delay.
The County appealed, and 2008 was spent filing pleadings with the Court of Special Appeals as the County tried to wear us down. The Court heard oral argument on December 3; on December 23, it issued a decision upholding the entire trial court decision except for the $5,000 per day fine, which it said was a remedy not authorized by the MPIA. It remanded the case to the trial court for a determination of additional attorney’s fees to be awarded to AOBA since November 30, 2007, including the trial and the appeal.
Gerald Heller, a Partner with Linowes and Blocher LLP, argued the case on behalf of AOBA in both courts.
Roberto Hylton Nominated for Police Chief
County Executive Jack Johnson has announced that acting Prince George’s County Police Chief Roberto Hylton will likely remain as the head of the County Police Department through 2010. Hylton, the former Deputy Chief, took over as acting Chief on an interim basis following the retirement of Police Chief Melvin C. High.
Police Chief High headed the 1,600 member department for five years before retiring. His apparent successor, Hylton, is a native of Panama and served as Commander of District 1 prior to his promotion. Hylton joined the Prince George’s County Police Department in 1981 as a patrol officer, and has worked his way to the top in his 27-year career.
Crime statistics delineate a tough road ahead for Hylton. The County currently maintains the second-highest crime rate in the State, behind only Baltimore City. During his interim status as acting Chief, Hylton has focused on improving community outreach and improving officer visibility throughout the County. Hylton also plans to continue various reforms initiated by High.
AOBA has enjoyed a cooperative and open working relationship with Acting Chief Hylton over the years. He has expressed his desire to reinvigorate the Department’s relationship with AOBA and its members.
County Council Nominates New Chair and Vice-Chair
The County Council unanimously voted Councilmember Marilynn M. Bland (D – District 9) to serve as Chair and Thomas E. Dernoga (D – District 1) to serve as Vice-Chair of the Council for the 2009 legislative year. The legislative year runs from December 2, 2008 until December 1, 2009.
Councilmember Bland is in her second term on the Council, and served as Council Vice-Chair during the 2008 legislative session. Prior to joining the Council, Bland worked as the legislative aide to the late Councilmember Isaac J. Gourdine.
Councilmember Dernoga currently serves as Vice-Chair of the Committee on Planning, Zoning and Economic Development, and as Chair of the Committee on Transportation, Housing and Environment. He was elected to Council in 2002 through a special election after the death of Walter H. Maloney, and was re-elected in 2002 and 2006. Mr. Dernoga served as Council Vice-Chair in 2005 and Council Chair in 2006.
BI-COUNTY
Water Main Break in Potomac Prompts Call for Federal Aid
December's burst of a 66-inch water main that caused massive flooding of River Road was only the latest of a series of breaks in the Washington Suburban Sanitary Commission’s (WSSC) faulty infrastructure. WSSC officials have previously said a 14.9 percent rate increase was needed to cover its needs. In the aftermath of the River Road break, Councilmembers Nancy Floreen (D) and Roger Berliner (D), who both serve on the Council’s Transportation, Infrastructure, Energy and Environment Committee, have urged the federal government to provide funding for the aging water mains as part of the proposed federal stimulus package.
President-Elect Obama has already publicized his plan for a federal economic stimulus package of up to $1 trillion, with $350 million designated for "ready-to-go" infrastructure developments. Montgomery and Prince George's counties collectively will seek approximately $189 million from the stimulus package and will dedicate the funds towards replacement and repair work on the water/sewer system.
Councilmember Floreen has asked Council President Phil Andrews (D) to schedule a joint meeting of the Montgomery and Prince George’s County Councils to work through solutions to this frequently occurring dilemma caused by the defective water main system. In recent years, however, the two Counties have been unable to agree on numerous issues regarding WSSC, such as a candidate to head the agency, appropriate funding sources for infrastructure renewal (recall last year’s proposed infrastructure renewal with a fee based on meter size) or what the level of funding ought to be for WSSC. Councilmember Berliner has suggested that the County examine the organizational structure of WSSC, opening the debate on the system’s bi-county governance structure once again.
Maryland Legislative and Regulatory Committee
| January 26, 2009 |
February 2, 2009 |
March 2, 2009 |
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February 9, 2009 |
March 9, 2009 |
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February 23, 2009 |
March 16, 2009 |
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March 23, 2009 |
All meetings will be at 2:00 P.M. in the community room located in the lower level of
GEORGIA WEST APARTMENTS (Located behind Georgian Towers)
8708 FIRST AVENUE
SILVER SPRING, MARYLAND 20910
(301) 588 1774 (for directions)
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