State
O'Malley Seeks Business Input on State Regulatory Excesses
December 17 is the deadline to weigh in! On October 17, Governor Martin O’Malley (D) issued an executive order asking each State agency to conduct a 60-day review of agency regulations to identify those that should be changed or eliminated in order to help create jobs in the State. The State’s online feedback site is intended to give business owners and the general public an easy way to tell the Governor and State officials about unnecessary regulations and anything else that is on their minds.
To suggest a regulation for review, alteration or elimination, click on the following web address: http://easy.maryland.gov/wordpress/2011/10/18/share-your-feedback/.
Then Click “Get in Touch” on the menu bar and enter your suggestion in the online form provided.
Congressional Redistrictings
In its October Special Session, the General Assembly approved the redrawing of Maryland’s Congressional district maps and, as predicted, a court challenge was filed. The lawsuit, filed by nine African-American voters, contends that the map approved by the General Assembly dilutes the black vote in the State. A hearing before a three-judge U.S. District Court panel in Greenbelt has been scheduled for December 20, and the Court anticipates rendering a decision by the end of January.
State Legislative Redistricting
Under the process that Maryland’s constitution sets for redrawing General Assembly legislative districts, the Governor is required to conduct public hearings, and then introduce a new legislative district plan on the first day of the legislative session commencing in the second year after each decennial census. That will be January 11, 2012, and the Governor’s plan will take effect on the 45th day of the legislative session unless the General Assembly enacts its own plan before that deadline. The redrawing of State legislative districts is expected to raise the volume on the racial/minority representation debate to a level even higher than what it was in the Congressional redistricting debate.
Maryland Prepares for the 2012 General Assembly Session
The 2012 Session is expected to be a very challenging session, stemming, in no small part, from the fact that, with a deficit of more than $1 billion, Maryland’s state budget faces tough times. Job creation and the economy likely will occupy the majority of the General Assembly’s attention, followed by social and environmental issues left unfinished from the 2011 session (these include same-sex marriage, immigration, and repeal of the death penalty). Governor O’Malley is personally sponsoring legislation to legalize sex-marriage this year, along with legislation to create an off shore wind energy farm and to adopt his recommendations to clean up the Chesapeake Bay; the latter include proposed limitations on growth that have already caused a rift between the urban and rural regions of the State.
In addition, proposals to use hydraulic fracturing (“fracking”) to extract natural gas from bedrock are expected to once again divide the legislature on regulation of natural gas drilling in Western Maryland.
The hyper-focus of legislators will be on where the money will come from to pay for everything that they and their constituents want. From the several proposals that are already circulating, businesses can anticipate new taxes and fees. They include: 1) increasing the state’s gas tax by 15 cents for three years; 2) tripling the “flush tax,” from the current $30 to $90, over the next three years; 3) expanding the sales and use tax to services (possibly including property management); and 4) increasing car titling, registration and emissions testing fees.
AOBA's Focus for the 2012 Session of the General Assembly
AOBA’s Maryland Legislative and Regulatory Issues Committee (LRIC) recently held its annual joint meeting with our Baltimore counterpart, Maryland Multifamily Housing Association (MMHA). LRIC Chairman David Hillman generously provided the meeting space and refreshments at Southern Management’s newly opened The Hotel at Arundel Preserve, Anne Arundel County's newest upscale, LEED-designed boutique hotel, and provided a tour after the meeting.
Members Harald Mangold, David Hillman, James Kane, Dana Schmidt, Emily Vaias,
and Jonathan Wright with AOBA's Lesa Hoover at Joint LRIC Meeting
During the meeting, the two associations discussed goals for our respective memberships for the 2012 Session of the General Assembly. We shared information about bills we know may be introduced, developed a shared agenda for proactive legislation, and laid out strategies for securing passage (or defeat) of the bills that are anticipated.
Anticipated Legislative Issues for the 2012 General Session
The items listed below are bills which are known of at this time, or are anticipated to be under consideration for introduction in the 2012 General Session:
Environment
- “Flush Tax” proposal to triple the current fee
- Bed Bugs -- a draft bill proposes to bar housing providers from renting units if there is a known infestation, requires notices to tenants, outlines treatments, and imposes monetary penalties for non-compliance.
Landlord and Tenant
- Court Fees – increasing filing fees on landlord and tenant filings to help fund Legal Aid
- Tie the interest rate on security deposits to a floating rate
- “Source of Income” protection – apply State-wide
- Change the definition of costs and fees that are collectible by a landlord in a non-payment of rent case to include any fee imposed for filing or conducting litigation of any kind in District court (in anticipation of new fees when the statewide e-filing system goes live)
Lead-Based Paint
- Law revisions to address the recent Court of Appeals ruling removing the limited liability protection in the 1994 law
- Maryland Department of the Environment (MDE) is seeking to increase the fees to fund the lead poisoning prevention program
- MDE is considering seeking legislation to expand the lead program to include rental property built from 1950 to either 1960 or 1978
- Trial lawyers are seeking a law change to allow them to pursue judgments based on “Market Share Liability” theory
- Changing current law to allow use of only venous testing (most medically reliable) and excluding use of capillary testing in making elevated blood-lead determinations
Taxes
- Imposing sales and use tax on property management services
- Expanding the sales and use tax to other goods and services
- Increasing the Gasoline/Fuel Tax
Utilities
- Legislation to require utility benchmarking by all privately owned commercial buildings
- A bill directing that utilities release private customer information to alternative energy suppliers to assist them in their marketing efforts
- Creating an off-shore wind power farm
- Imposing surcharges for utilities to meet infrastructure needs (skirting review by the PSC)
- Removing the sunset date on the ability to use master meters in new residential hi-rise construction
Bi-County Bills -- WSSC
- Creating a receivership for unpaid water and sewer bills on rental property PG/MC 105-12
- Establishing authority for WSSC to place a lien on the property for unpaid water bills PG/MC 106-12
Prince George’s County Bills Requiring State Legislative Approval
- Requiring that long-term leases (3 years) be offered to residents over 55 PG 413-12
- Requiring air conditioning in rental communities for residents over 55 PG 414-12
- Giving municipalities same planning and zoning authority as the County PG 411-12
Montgomery County Bill requiring State Legislative Approval
Creating a Physical Accessibility Rating System for “places of public accommodation” MC 15-12
Bay Pollution Diet – Expensive for Local Governments
The Chesapeake Bay “pollution diet” was created by the U.S. Environmental Protection Agency (EPA) to restore clean water in the Bay and the region’s streams, creeks and rivers. It identifies the necessary reductions of nitrogen, phosphorus and sediment reaching waterways in Delaware, Maryland, New York, Pennsylvania, Virginia, West Virginia and the District of Columbia. The diet calls for a 25 percent reduction in nitrogen, 24 percent reduction in phosphorus and 20 percent reduction in sediment.
Local and state environmental officials are drafting their proposals to implement the EPA’s plans for reducing Bay pollution, which must ensure that all pollution control measures to fully restore the Bay and its tidal rivers will be in place by 2025, with at least 60 percent of the actions completed by 2017. The plans include pursuing State legislation to fund wastewater treatment plant upgrades.
While cost estimates vary for each affected jurisdiction, the Bay cleanup in Prince George's County is estimated to cost $800 million over the next ten years, which will likely be funded by new fees. The County has stated that bond sales could help fund a majority of the anticipated expense, and that it will pursue available Federal and State grants to help fund project costs. The County may also have to implement a new storm water utility fee, in addition to the storm water taxes it already levies.
Prince George's County
AOBA Happy Hour with the County Executive: Members Sheila Jones, James Kane and
Mike Federici with County Executive Rushern Baker and AOBA's Lesa Hoover and Shaun Pharr
New Leadership for the Council
The Prince George’s County Council unanimously elected Council Member Andrea C. Harrison (D – District 5), as Chair for 2012. Council Member Eric Olson (D – District 3), was elected as Vice Chair.
Councilwoman Harrison was elected to her first full term in November 2010, after serving the remaining two years of a four-year term vacated by David Harrington (D) when he was appointed to a vacancy in the Maryland State Senate. Councilman Eric Olson of College Park was re-elected in November 2010 to serve his second and final term in office on the Council.
Bag Tax
Prince George's County has introduced a bill to impose a 5-cent tax on disposable bags, similar to a tax already in place in Montgomery County and the District. Because the County does not have its own taxing authority, authority to impose a new tax requires approval from the General Assembly. If authority is obtained, all details for a bag tax will be up to the County Council and will require a vote by the full Council.
Slots in Exchange for a Hospital
The County Council voted 5-4 to table a measure prohibiting slots in the County. Instead, it voted to support General Assembly passage of legislation to allow a state-wide referendum on whether to allow gambling at a particular site-- meaning all Marylanders would decide whether to approve slots at Rosecroft Raceway in Prince George’s County. A referendum could be on the ballot as soon as November 2012; if held and voters approve, the Council would still have the ability under its zoning authority to examine and approve or deny a slots proposal. The Council’s rationale for this unusual move was that failure to leave the option of slots on the table might place at risk other money that it hopes the General Assembly will give toward building a new hospital in the County.
Corruption Acquittal
Prince George’s County Senator Ulysses Currie (D), once the Chairman of the powerful Senate Budget and Taxation Committee, was recently acquitted by a jury on all counts alleging his involvement in a corrupt scheme with Shoppers Food Warehouse Corp. executives. The Senator had been charged with using his office to assist the company in return for $245,816 in payments. Senator Currie continues to sit on the Budget and Taxation Committee while the matter is reviewed by the General Assembly's Joint Committee on Legislative Ethics, which will meet in January to consider sanctions.
Jack Johnson Sentencing
Former Prince George’s County Executive Jack B. Johnson (D), who pleaded guilty in May to extortion, witness and evidence tampering, was sentenced this week to 87 months in prison. Under federal sentencing guidelines, he faced up to 14 years in prison for a pay-to-play scheme in which he took as much as $1 million in bribes. He was also was fined $100,000 and ordered to undergo alcohol treatment. He is to begin serving his sentence on February 3.
Schedule for the Execution of Evictions
Multifamily members are reminded that the number of available calendar days for executing writs for evictions will be limited during the next several weeks. However, in an effort to continue reducing the backlog of pending evictions, the Sheriff will continue to execute evictions in both commercial and residential locations, with certain limitations.
Sheriff's Office Looks Back at 2011
The following statement was submitted by the Sheriff’s Department for dissemination to AOBA members:
As 2011 comes to a close, Sheriff Melvin C. High has been in office a full year. The Sheriff conducted a comprehensive review and evaluation of the agency and each Bureau. He examined the processes and procedures with an eye to improve operations. He also undertook strengthening relations with our customers and partners. This is a look back on the Landlord and Tenant Section (Section).
Although the Section was particularly affected by weather events (flooding of Upper Marlboro), productivity remained high. Based on current trends, it is estimated that by the year-end, the Department will have posted 162,359 tack-ups in 2011 as compared to 156,168 last year. The Department also estimates that approximately 5,672 Warrants of Restitution will have been executed compared to 5,033 last year.
The Section deputies enter residences before moving teams go in to check for weapons and contraband. By the end of November, the Section had recovered 5 rifles, 11 shotguns, 5 handguns, 2 inert hand grenades and over 3,000 rounds of ammunition. In addition, swords, brass knuckles and martial arts equipment were also found and confiscated and removed from potential use.
While the section does not keep statistics on animal encounters, Animal Control responded to the Department’s requests for assistance on several occasions and took possession of cats and dogs, birds, fish-- and one boa constrictor.
Beyond the boa constrictor, other things happen in the course of the work that even surprises those who think they’ve seen everything. The grand prize for surprises in 2011 was the apartment that had been turned into an indoor marijuana farm. The street value of the marijuana found at the location was estimated at $500,000.
The Department remains confident that the scheduling plan implemented for management companies operating multiple complexes will continue to improve the operations for Section and for property owners and managers. Providing companies two days of eviction service at larger facilities
Finally, it’s time again to address the “Annual Christmas Moratorium,” the period during the holidays when the Office of the Sheriff halts evictions of families. This holiday, the moratorium starts on December 19, 2011 and ends on January 3, 2012. The exceptions to the moratorium are commercial business evictions and “walk-throughs”* and the deputies will continue to do tack-ups, as usual. The Section will be well-positioned to devote attention and resources to residential locations when the New Year begins.
From Sheriff High and all of the members of the Prince George’s County Sheriff’s Office, have a safe and Happy Holiday.
*A “walk-through” is an eviction where the tenants have vacated and there is absolutely no property that needs to be removed. The requirement of absolutely no property cannot be stressed enough. The deputies will not be able to evict any property from any dwelling. The only other requirement is for the property owner to have complete access to the dwelling. If a lock must be broken in order to gain access to the dwelling it does not fit the description of a walk-through. This determination will be in the discretion of the deputies conducting the walk-through. If the deputies determine these requirements have not been met, the eviction writ will be placed back into the normal rotation.
Montgomery County
Passing of the Gavel on MoCo Council
Earlier this week, the Montgomery County Council unanimously elected Roger Berliner as president and Nancy Navarro as vice president of the Council. They will serve one-year terms as officers of the Council.
Councilmember Berliner, who represents District 1, served as vice president of the Council for the past year. He was first elected to the Council in November 2006 and represents the Bethesda, Chevy Chase and Potomac areas. He also serves as the Council’s representative to the County’s Sustainability Working Group and Green Economic Task Force. Regionally, he is on the Washington Regional Board of Directors of the Council of Governments, where he is an active member of the Climate, Energy and Environment Policy Committee.
Vice President Navarro was elected to represent District 4 in a special election in May 2009 and was re-elected in the general election of November 2010. She chairs the Council’s Government Operations and Fiscal Policy (GO) Committee and serves on the Health and Human Services Committee. Prior to her election to the Council, Councilmember Navarro served on the Montgomery County Board of Education, where she was twice elected president (2006 and 2008).
Here are some excerpts from Council President Berliner’s remarks upon being sworn in:
“Our work to regain fiscal stability is not done. We are not out of the woods yet. Further cuts may be inevitable. But we are beginning to regain our balance and there may be a faint gleam of light at the end of this long dark economic tunnel. I certainly hope so, and I hope that finalizing our County’s budget for FY13 will not be as difficult as it has been in recent years, and that we can find common ground and a balanced budget satisfactory to our taxpayers, school system, and employees.
Large governments like ours are especially challenged by the need to embrace change. And in our county, we have done things a certain way for a long, long time. We call it the Montgomery County Way. And when anything is done the same way for too long, there is the risk of stagnation and becoming “hidebound.” That is not a combination that meets new challenges well.
Here are [two] of the steps I will be exploring with my colleagues and the County Executive in the year ahead to create a more prosperous Montgomery County:
- Our county employs a very traditional model for economic development. Our competitors in the region and other jurisdictions across the country use models that rely on the entrepreneurialism of the private sector. This is an approach that our colleague, Councilmember Floreen, began exploring two years ago. She may have been ahead of her time, but a number of my colleagues and I think the time is ripe to have business people help us bring business to Montgomery County.
- We often hear from our business community that they perceive our government regulations as excessive and that our permits, planning, and processes take forever. Small businesses suffer even more in such an environment. We need an objective assessment of that criticism. I will be working with our business community and our excellent OLO staff to see if we can fashion a scope of study that will help us understand what specific actions we could take to create a more favorable business environment.”
County Executive to Hold Public Forums on the FY13 Operating Budget
County Executive Isiah Leggett is sponsoring five budget forums throughout the County during the month of January to seek input from residents about Fiscal Year 2013 Operating Budget priorities. The County Executive announces his Recommended Fiscal Year 2013 Operating Budget on March 15, after which the County Council deliberates, giving approval to the operating budget at the end of May.
AOBA members are encouraged to participate in the Executive forums, which are scheduled to begin at 7 p.m. on the following dates:
- January 9, Bethesda-Chevy Chase Regional Services Center, 4805 Edgemoor Lane, Bethesda.
- January 12, Silver Spring Civic Building, One Veterans Place, Silver Spring
- January 17, Mid-County Community Recreation Center, 2004 Queensguard Road, Silver Spring
- January 23, BlackRock Center for the Arts, 12901 Town Commons Drive, Germantown
- January 31, Eastern Montgomery Regional Services Center, 3300 Briggs Chaney Road, Silver Spring
Impact Tax Exemptions Proposed to Stimulate Affordable Rental Housing
Councilmember Nancy Floreen, with Councilmembers Craig Rice and Nancy Navarro as co-sponsors, has introduced Bill 39-11 in an effort to incentivize development of new affordable housing. The County has long had a development impact tax intended to help fund the added transportation and schools capacity necessitated by new development. Historically, County policy has been to give a full exemption from the tax to those units in a new development which will meet the price or rent eligibility standards prescribed in the County’s Moderately Priced Dwelling Unit (MPDU) Program or a similar affordable housing scheme. And, if at least 30% of the units in a new development are going to meet the MPDU or similar affordability standards, the other units are only assessed 50% of the applicable impact tax.
If adopted, Bill 39-11would substantially alter that policy: in any new housing development in which at least 25% of the rental units will meet the MPDU or similar affordability standards, not only those units, but all of the other rental units in the development, will be fully exempt from the development impact tax. A public hearing is tentatively scheduled for January 24, 2012 at 1:30 p.m.
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