The 2006 session of the Maryland General Assembly adjourned at midnight on Monday, April 10th. After consideration of 2,856 bills over 90 days before sine die, the legislature passed a total of 823 bills (489 Senate bills and 334 House bills), and maybe not surprisingly in a year dominated by electricity rate increases and legislative veto overrides, only a modest number of those bills impact upon real estate.

During the first gubernatorial bill signing on April 11th, the Governor signed 47 bills. Future bill signings are scheduled for April 22, May 2, and May 16.

This is a review of select legislation enacted by the General Assembly that impacts upon real estate, including significant environmental legislation. While there is no doubt value in considering what bills did not pass (including that all 42 bills that would have reformed eminent domain in Maryland failed), limitations of space do not permit that assessment here.

Legislation has been organized below within the following headings: Landlord Tenant, Real Property, Real Estate Agents and Brokers, Annexation, Farm Land, Condominiums, Courts and Civil Proceedings, Insurance, Environment, Property Tax, and Alcohol Beverages and more.

Landlord/ Tenant

HB 1620 authorizes a residential tenant to purchase a Surety Bond to protect the landlord against nonpayment of rent, damage due to breach of lease, or damage that exceeds ordinary wear and tear to the leased premises, common areas, major appliances, and furnishings instead of paying all or part of a “security deposit” to a landlord. The bill establishes rights and responsibilities for the landlord, tenant, and surety. A landlord may not require a tenant to purchase a surety bond, nor is the landlord required to consent to a tenant’s purchase of a surety bond. Accepting a surety bond relieves a landlord of paying interest on a tenant’s security deposit. If a prospective tenant does not enter into a lease with the landlord or if a landlord refuses to accept the bond, the surety must refund the amount paid for the surety bond. The cost of a surety bond may not exceed two times the monthly rent and the bond must be issued by State licensed carrier. Before a tenant purchases a surety bond, the surety must disclose specified information about the bond in writing to the tenant.

Real Property

SB 253/ HB 298 requires a contract for the sale of residential real property to contain a disclosure advising the buyer that the property may be located near a military installation that conducts flight operations, munitions testing, or military operations that may result in high noise levels. All local laws requiring a substantially similar notice prevail over the bill provisions. This disclosure requirement does not apply in Allegany, Carroll, Frederick, Garrett, Howard, Montgomery and Washington Counties. The new mandatory text for contracts entered into on or after October 1, 2006 is: “BUYER IS ADVISED THAT THE PROPERTY MAY BE LOCATED NEAR A MILITARY INSTALLATION THAT CONDUCTS FLIGHT OPERATIONS, MUNITIONS TESTING, OR MILITARY OPERATIONS THAT MAY RESULT IN HIGH NOISE LEVELS.”

HB 559 prohibits the seller of real property in Frederick County that is subject to a tax or fee of a special taxing district or community development authority from enforcing the contract of sale, unless within 20 days after entering into the contract the purchaser is provided with: (1) a written statement containing specified information about the fee or tax and the bill’s provisions; (2) the amount of the current annual tax or fee; (3) the number of years remaining for the tax or fee; and, (4) whether any tax or fee is delinquent. These requirements are deemed fulfilled if the information to be provided is done so clearly and concisely, in writing. The written statement may be provided to the purchaser by including it as a clause in the contract for the sale of the property. The bill applies to contracts entered into on or after October 1, 2006.

SB 353/ HB 452 provides that in a divorce or annulment proceeding, a court may transfer, subject to the terms of any lien, ownership of an interest in real property jointly owned by the parties, and used as the principal residence of the parties when they lived together, by: (1) ordering the transfer of ownership of the real property or any interest of one of the parties in the real property to the other party if the party to whom the real property is transferred obtains the release of the other party from any lien against the real property; (2) authorizing one party to purchase the interest of the other party in the real property, in accordance with the terms and conditions ordered by the court; or (3) both. The bill has prospective application.

HB 128 provides that before a developer may obtain a permit from Baltimore City to construct a development containing at least 20 housing units within the boundaries of a community represented by a community association (being one of the more than 400 associations listed for at least 2 years in the directory maintained by the City Department of Planning), the developer or the developer’s agent must (1) notify the community association of the proposed development; and (2) attend a scheduled association meeting or an association committee or subcommittee meeting and consult with the association’s members in attendance.

SB 562/ HB 1104 stipulates that if no public water source is available to a fire company to supply water to extinguish a fire or mitigate an emergency, then the fire company may enter private property in order to obtain water from a private source, such as a privately owned pond, lake, river, stream, canal, cistern, or swimming pool.

SB 104 removes the requirement that the Department of Labor, Licensing, and Regulation (DLLR) annually inspect and certify all elevator units. DLLR may determine, by regulation, the required inspection and certification intervals. The interval timing must protect the public safety, taking into consideration the design, type, age, and operating characteristics of the unit. DLLR may prohibit use of an elevator unit if, based on inspection, the unit violates safety standards or there is a substantial probability that death or serious harm could result from its continued use.

SB 11 is an extension of the 2005 Code Revision enactment, which created the Housing and Community Development Article of the Annotated Code. The 2006 session bill encompasses Division II “Housing Authorities” of the article and is nonsubstantive revision of the former Article 44A of the Annotated Code.

SB 12, a companion bill to the revision, corrects cross-references to the new Division II of the Housing and Community Development Article that appear in other parts of the Annotated Code of Maryland.

Real Estate Agents and Brokers

SB 684/ HB 1107 allows a person holding a real estate license in another State and whose principal place of business for the provision of real estate brokerage services is outside of Maryland to apply for a “reciprocal license” to offer real estate brokerage services in Maryland. The reciprocal license issued will be for the category of license (real estate salesperson, associate real estate broker, real estate broker) the Real Estate Commission determines is most similar to the license the applicant holds in the other state. A reciprocal license holder must affiliate with a real estate broker holding a license in order to conduct business in the State. These reciprocal licensing provisions may be implemented through reciprocal licensing agreements entered into by the Commission with real estate licensing authorities in other states. The Commission is not required to enter into an agreement with a state prior to issuing a reciprocal license to a licensee from that jurisdiction, though the Commission must require the applicant to meet substantially comparable education, experience, and examination requirements to those required of Maryland licensees.

SB 384/ HB 715 provides that a licensed real estate salesperson may serve as the manager of a real estate branch office if the salesperson has: (1) successfully completed a 135 hour course in real estate for brokers approved by the Real Estate Commission; and (2) passed the real estate broker’s examination given by the Real Estate Commission. However, prior to taking the real estate broker’s examination, the real estate salesperson must submit to the Commission a commitment from the real estate broker who is proposing to engage the salesperson as a branch office manager.

SB 55 clarifies that the current Real Estate Commission fees, set by statute, will remain in effect until new fees are established by regulation. Under current law, certain fees including an examination fee, application fees, renewal fees, a fee for reinstatement, and other fees generally relating to licensing of real estate brokers, associate real estate brokers, and real estate salespersons are set by statute. A change in law in 2005 establishes a State Real Estate Commission Fund to cover the costs of the Commission and repeals the current law. But that law only authorizes the Commission, after July 1, 2007, to set those fees by regulation. This new statute will address the one-year period when the fee amounts have been removed from statute yet will not have been set by regulation by the Commission.

Annexation

SB 1089 The annexation of land into a Columbia (Howard County) village or town center may be accomplished in one of two ways: the annexation is approved in writing by the Federal Housing Administration (FHA); or by approval of two-thirds of the members of the association entitled to vote. The Columbia Association advises that FHA has stopped participating in the annexation process. As such, it is unable to annex land into a village or town center by this method. The Columbia Association further advises that the areas of particular concern are two residential properties near the Columbia Mall. While the owners of these properties pay a charge imposed on real property by the Columbia Association, since these properties are not part of a village or town center, these individuals are unable to either elect representatives or be elected to village boards, the Columbia Council, or the Columbia Board of Directors. This emergency bill establishes another process for the annexation of parcels of land subject to the deed, agreement, and declaration establishing any of the villages or town center in Columbia. A parcel of land can be annexed into the village or town center in which it is located, if: (1) the owner or developer of the land applies to the village or town center community association for annexation; and (2) the Columbia Association or its successor, and the village or town center community association approve the annexation.

HB 1141 makes several changes regarding local government planning. It modifies provisions regarding the required elements of local comprehensive plans and will require modifications to many general plans by 2009. Significantly, the bill modifies provisions of State law relating to annexation (including the expansion of existing restrictions governing the use of land during the five-year time period following an annexation by now incorporating a density measure and linking it to the zoning ordinance; and providing that areas annexed by a municipality after September 30, 2006, must satisfy specified requirements under the priority funding area law). The legislation also authorizes and encourages joint planning between counties and municipalities; and, establishes a Task Force on the Future for Growth and Development in Maryland.

Farm Land

HB 180 establishes the Maryland Agricultural Land Link Program within the Maryland Department of Agriculture (MDA). The stated purpose of the program is to assist older
or retiring farmers in the lease or sale of their agricultural land to younger or beginning farmers; keep agricultural land in the State in active agricultural use; and, reduce the amount of agricultural land that is lost each year to development. Under the program, if sufficient funds are provided in the annual budget, MDA must: (1) maintain an online database to serve as an electronic bulletin board for the voluntary posting of information regarding agricultural land available for use, lease, or sale and internship, apprenticeship, employment, and business opportunities for farmers; and, (2) promote the lease or sale of agricultural land from retiring farmers to beginning farmers.

HB 396 requires an individual who wishes to bring a nuisance action against an agricultural operation in any court to first (1) file a complaint with a local agency authorized to hear such complaints, if one exists (and they do exist in 14 counties as part of Right To Farm programs); and (2) obtain a decision or recommendation on the complaint from the local agency. If there is no local agency authorized to hear a nuisance complaint against an agricultural operation, the individual may not bring the nuisance action in court until (1) the individual refers the complaint to the State Agricultural Mediation Program in the Maryland Department of Agriculture; and (2) the Department certifies that mediation has been concluded.

HB 769 increases, from $1 million to $2 million, the maximum amount of funds available from Maryland Agricultural Land Preservation Foundation (MALPF) for matching county funds. The bill also repeals the five-year time requirement that a landowner must agree to in order to be eligible for inclusion into an agricultural preservation district under the Maryland Agricultural Land Preservation Program. Instead, the 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. In addition, the bill provides that the time period of the district agreement must be from 3 to 10 years. The bill also modifies the existing provision regarding the ability to sell an easement that has been rejected by MALPF so that a landowner who rejects an offer from MALPF for two consecutive years for a reason other than insufficient funds may not reapply to sell an easement on the same land for the following two consecutive years. By January 31, 2007, MALPF must submit a report to the General Assembly that outlines procedures, laws, and regulations MALPF determines to be necessary in order to implement the elimination of agricultural districts from the program.

SB 485/ HB 1106 exempts Calvert, Charles, Dorchester, Frederick, Harford, Prince George’s, St. Mary’s, Somerset, and Talbot counties from the Maryland Building Performance Standards for the construction, alteration, or modification of agricultural buildings for which Agritourism is an intended subordinate use (i.e., the building must be structurally sound, but does not need to comply with requirements for bathrooms, sprinklers, elevators, etc.); providing that an existing agricultural building used for Agritourism is not considered as a change of occupancy that requires a building permit under specified circumstances.

HB 90 authorizes the Maryland Agricultural Land Preservation Foundation (MALPF) to approve a landowner’s request to relocate the site of an existing dwelling to another location on a farm subject to a MALPF easement or district agreement. The following conditions must be met in order to be approved: (1) the new location may not interfere with any agricultural use; and (2) subject to the Foundation’s approval, the landowner must agree either to demolish the existing dwelling at the current location or permanently convert it to a use that is integral to the farm operation.

HB 699 creates a new Barn Preservation Fund to provide grants to preserve historic barns and agricultural structures.

HB 2 generally implements the recommendations of theAgricultural Stewardship Commission. The bill modifies the existing agricultural land preservation certification program to include Priority Preservation Areas; establishes an agricultural internship program; and, establishes a task force to study the tax structure related to farmers. The Bill also establishes the intent of the General Assembly that the Governor provide additional funding for several existing programs and mandates funding for specified existing programs.

Condominiums

SB 10/ HB 123 When a rental facility with 10 or more units will be converted to a condominium, the developer must give notice to the tenants and meet other requirements, including honoring existing leases. This bill expands the class of individuals, from a “handicapped citizen” to include an individual with a “disability” as defined under the bill, who must be offered an extended lease when a rental facility is converted to a condominium. Under the bill, “disability” means: (1) a physical or mental impairment that substantially limits one or more of an individual’s major life activities; or (2) a record of having a physical or mental impairment that substantially limits one or more of an individual’s major life activities. “Disability” does not include the current illegal use of or addiction to a controlled dangerous substance, as defined in State law, or a controlled substance, as defined in federal law. When extended leases must be offered by the developer, among designated households that include individuals with disabilities, priority must be given to households that include an individual who requires wheelchair accessible housing. The bill also alters the allocation among households who must be offered extended leases.

SB 815/ HB 1006 alters provisions governing income eligibility for extended leases and purchases by local governments when a rental facility is converted to a condominium. The bill applies to any residential rental facility for which the notice to the tenants about the conversion has not been given on or before March 16, 2006. Except in Baltimore City, the bill authorizes a county or incorporated municipality to select, which income eligibility figure prepared by the Secretary of State to use in the county or municipality for purposes of determining eligibility for an extended lease when rental housing is being converted to a condominium. If a county or municipality does not select a figure, the income eligibility is 80% of the household median income for the county. In Baltimore City, the figure must reasonably approximate 100% of the median household income for the Baltimore Metropolitan Statistical Area. The bill also makes conforming changes to the notice that must be sent to tenants of a converting property. Additionally, when a county or municipality exercises its right to purchase a rental housing facility before conversion to a condominium, the county, municipality, or housing agency making the purchase may, now as an alternative to retaining the entire property as a rental facility for at least 3 years, retain or provide for the retention of at least 20% of the units in the facility as rental units for 15 years for income-eligible households.

Courts and Civil Proceedings

SB 423/ HB 1060 expands existing laws and provides that a mechanic’s lien may be established for the provision of building or landscape architectural services, engineering services, or land surveying services. A building erected or repaired, rebuilt, or improved to the extent of 15% of its value is subject to the establishment of a lien for the payment of all debts contracted for work done and for materials furnished, including the drilling and installation of wells to supply water; the construction or installation of any swimming pool or fencing; the sodding, seeding, or planting of shrubbery or other nursery products; the grading, filling, landscaping, and paving of the premises; and the leasing of equipment for use about the building or premises.

HB 436 clarifies that an administrative hearing and adjudication by the Home Improvement Commission is not a prerequisite to criminal prosecution of a home improvement contractor, subcontractor, or salesperson for acting without an appropriate license. As a result of a Court of Appeals case,Fosler v. Panoramic Design, Ltd., 365 Md. 472 (2001), a District Court judge ruled that the Commission must first adjudicate whether a defendant acted as an unlicensed contractor before the defendant can be prosecuted on criminal charges. The commission regulates 14,320 licensed contractors, 566 licensed subcontractors, and 1,886 licensed home improvement salespersons. In fiscal 2005, the commission received 1,326 complaints of unlicensed contracting and initiated 196 criminal trials.

SB 736/ HB 708 adds limited liability companies (LLCs) to provisions of law that govern (1) service of process on a corporation when a criminal charging document is filed; and (2) failure of the corporation to appear in court in response to service of process. The bill includes limited liability partnerships (LLPs) and limited liability limited partnerships (LLLPs) in the definition of LLCs.

SB 678 authorizes a personal representative, trustee, or fiduciary to inspect the property and assets of a limited liability company in which they hold an interest, to determine compliance with an environmental law and respond to an actual or potential liability relating to the property.

SB 550/ HB 546 amends the Maryland Uniform Transfer to Minors Act to allow two persons to be designated as custodians of custodial property transferred for the benefit of the same minor. The two persons act as joint custodians and, unless otherwise specified in any document creating the custodianship, each joint custodian has the full power and authority to act alone as a custodian. If either custodian resigns, dies, becomes incapacitated, or is removed, the remaining custodian may serve as the sole custodian without appointing a successor joint custodian.

SB 354/ HB 512 amends Title 9 of the Maryland Uniform Commercial Code governs transactions that create a security interest in personal property or fixtures. To perfect a security interest under Title 9, a person must file a financing statement with the State Department of Assessments and Taxation. During the 2001 session, Maryland adopted a revised Title 9 under which the expiration date of a financing statement was changed from 12 years after the date it is filed to 5 years after the filing date. This bill intended to resolve this issue created by that prior legislation by allowing a continuation statement to be filed within six months before the date the original financing statement ceases to be effective. To confirm the effectiveness of a continuation statement filed between January 1, 2006, and June 30, 2006, the bills are made applicable to all continuation statements filed before July 1, 2006.

Insurance

SB 463/ HB 1460 establishes standards for “title insurance producer independent contractors.” A title insurance producer independent contractor is a person that (1) is a licensed title insurance producer; (2) provides escrow, closing, or settlement services as an independent contractor for, or on behalf of, a licensed and appointed title insurance producer; and (3) is not an employee, or associated with, the licensed and appointed title insurance producer. A title insurance producer may not use or accept the services of a title insurance producer independent contractor unless the contractor holds an appointment with the title insurer with which the contract of title insurance may be placed. The bills also clarify the annual on-site review requirements of title insurance producers; provide that the licensing, bonding, education, experience, and examination requirements relating to title insurance producers do not apply to law firms; and provide that notice provisions with respect to title insurance do not apply to commercial real estate transactions.

SB 913/ HB 570 establishes a 45-day underwriting period for a binder or policy, other than a renewal, of private passenger motor vehicle, homeowners, dwelling, credit loss, or commercial property insurance, or liability insurance consistent with current law. During this period, an insurer may cancel a binder or policy if the risk does not meet the insurer’s underwriting standards. An insurer must give written notice concerning its ability to cancel during the underwriting period. A cancellation notice during the period must meet the bill’s specifications. If an insurer intends to cancel a binder given to a consumer borrower to satisfy a lender’s requirement, the insurer must give the lender and the consumer borrower 15 days’ written notice.

HB 285 prohibits an insurer, for homeowner’s insurance, from refusing to underwrite a risk, increasing a premium, or canceling or refusing to renew coverage based on an “inquiry,” as defined under the bill, by an insured or an insurance producer on an insured’s behalf that does not result in the payment of a claim.

HB 1288 specifies that a lender (in the case of a mortgage or deed of trust) or credit grantor (in the case of a credit plan) may not require a borrower, as a condition to receiving or maintaining a mortgage, deed of trust, or credit plan secured by a lien, to maintain homeowner’s insurance coverage against risks to any “improvements” on any real property in an amount exceeding the “replacement cost” of the improvements. Under the bill, “improvements” means buildings and structures erected upon or affixed to real property that enhance the value of the real property. “Replacement cost” means the amount needed to repair damage to or rebuild improvements on real property to restore the improvements to their pre-loss condition. Replacement cost does not include the value of land.

Environment

SB 586 exempts outside surfaces of an affected property from the risk reduction standards under the Reduction of Lead Risk in Housing Program within the Maryland Department of the Environment (MDE), if all exterior surfaces are lead-free and the owner submits an inspection report to MDE that: (1) indicates that the outside surfaces have been tested for the presence of lead-based paint in accordance with standards and procedures established by MDE by regulation; (2) states that all outside surfaces are lead-free; and (3) is verified by the MDE accredited inspector who performed the test. Current law had required, among other things, that any chipping, peeling, or flaking paint on specified exterior and interior painted surfaces be removed or repainted in order to pass the test for lead contaminated dust. That law is amended by this bill to exempt paint on the exterior that is not lead-based.

HB 1450 doubles the maximum administrative, civil, and criminal penalties applicable to violations of the Reduction of Lead Risk in Housing Program within the Maryland Department of the Environment.

SB 154 establishes specified limits on the emissions of nitrogen oxides (NOx), sulfur dioxide (SO2), and mercury from specified Electric Generating Facilities in the State. The bill also addresses carbon dioxide (CO2) emissions by requiring the Governor to include the State in the Regional Greenhouse Gas Initiative. Affected facilities must submit annual reports to the Maryland Department of the Environment (MDE), the Department of Natural Resources, and the Public Service Commission. MDE must adopt regulations to implement the bill by June 30, 2007. Finally, the bill establishes penalty provisions.

SB 751 makes various changes to the Chesapeake and Atlantic Coastal Bays Critical Area law, largely in response to a recent decision of the Circuit Court for Talbot County. The bill modifies provisions relating to the review of a local jurisdiction’s proposed use of Growth Allocation. It modifies provisions relating to the decision process for amendments and refinements of local programs. This legislation also establishes a definition for “developer” to provide that any person who undertakes development activities within the Critical Area is considered a developer; and it modifies the definitions of “program amendment” and “program refinement” to eliminate ambiguity in the current definitions and conform the definitions to the procedural requirements of the Critical Area law.

HB 109 requires the Maryland Department of the Environment, for a period of three years, to maintain at least two sound level meters and calibration of those meters. Upon request of a qualified, MDE must make a sound level meter available to the county for the purpose of enforcement of environmental noise standards. MDE establishes noise standards, sound level limits, and noise control rules and regulations as necessary to protect the public health, the general welfare, and property. To the extent possible, MDE uses the facilities and services of appropriate agencies of political subdivisions in its enforcement. In general, political subdivisions may not establish standards less stringent than MDE’s. The fiscal 2006 and 2007 budgets did not include any funds for the Noise Control Program in MDE.

HB 558 expands the allowable uses of the Septics Account within the Bay Restoration Fund within the Maryland Department of the Environment to include the cost of repairing or replacing a failing onsite sewage disposal (septic) system with a system that uses the best available technology for nitrogen removal or another conventional system. The bill also establishes new provisions governing priority for grants and loans from that account.

Property Tax

SB 382/ HB 5 makes several changes to the Homeowners’ Property Tax Credit Program (the Circuit Breaker), a State-funded program (i.e., the State reimburses local governments) providing credits against State and local real property taxation for homeowners who qualify based on a sliding scale of property tax liability and income. This bill alters the definitions of assets and gross income, increases the maximum eligible assessment from $150,000 to $250,000, alters the percentages of income used to calculate the credit, and imposes a combined income limit on recipients. The bill also increases the maximum tax credit allowed under the Renters’ Property Tax Relief Program from $600 to $750. The changes to the Homeowners’ Property Tax Credit Program are applicable to all taxable years beginning after June 30, 2006, and the changes to the Renters’ Property Tax Relief Program are applicable to calendar years beginning after December 31, 2005.

HB 717 includes the beneficiary of specified trusts for individuals with disabilities as homeowners eligible to take the Homeowners’ Property Tax Credit Program (the Circuit Breaker). It also includes these trusts in the definition of families of limited income in order to qualify for assistance from the Maryland Housing Rehabilitation Program in the Department of Housing and Community Development.

SB 853 alters the calculation and eligibility criteria of the municipal supplement to the Homeowners’ Property Tax Credit Program to make it consistent with the calculation and eligibility criteria authorized under the county supplement program. The bill alters the amount of credit that may be granted by repealing the limitation that a municipal supplement may not exceed 50% of the State Homeowners’ Property Tax Credit.

SB 319 clarifies that the pass-through entity (PTE) tax includes business trusts that are not taxed for State purposes as corporations. A tax is imposed on a pass-through entity that has: (1) any member who is a nonresident of the State or is a nonresident entity; and (2) any nontaxable income for the tax year. Pass-through entities include an S corporation, partnership, and limited liability company that is not taxed as a corporation. Members include a shareholder of an S corporation; general or limited partner of a partnership, limited partnership, or limited liability partnership; or member of a limited liability company. The tax rate applied to the nonresident share of a PTE’s income is equal to: (1) 6% for a nonresident; and (2) 7% for a nonresident entity. The PTE tax does not apply to: (1) the income share of a member that itself is a PTE formed under the laws of the State or registered by the State Department of Assessments and Taxation to do business in the State; or (2) the direct or indirect distributive share of a member that is a real estate investment trust under Section 856 of the Internal Revenue Code.

HB 208 alters the time by which the Supervisor of Assessments must supply a list of properties that will be used as comparables at a hearing before the Property Tax Assessment Appeals Board. Specifically, the bill requires the supervisor to supply the requested list at least 30 days before the date that the hearing has been scheduled in response to a written request made at least 35 days before the hearing or within 5 days from a request made between 35 days and 15 days before the hearing.

SB 764/ HB 941 allows any business located in a State enterprise zone to continue being eligible for property tax credits for an additional three years after the expiration of the enterprise zone designation. Businesses are required to meet all other qualifications for the tax credits as provided under current law.

HB 953 requires the State Department of Assessments and Taxation (SDAT) to provide information regarding the calculation of the property assessment and description of the property on the department’s web site. The bill also prohibits SDAT from charging a fee for providing the information online. The bill takes effect October 1, 2006 and applies to all assessment notices sent after October 31, 2007.

SB 361/ HB 1275 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. Conservation property includes land that is subject to a perpetual conservation easement approved by the Board of Public Works before June 30, 1986 and land that currently receives a property tax credit for conservation land.

SB 1076/ HB 1235 alters the existing Neighborhood and Community Assistance Tax Credit Program by expanding eligibility for the tax credit to include real property contributions and increasing the maximum value of the credit from $125,000 to $250,000.

Alcohol Beverages and more

SB 280/ HB 517 permits a person who orders a bottle of wine with a meal at a restaurant but only consumes part of the contents of the bottle to now take the bottle with its remaining contents home. The licensee of the licensed premises where the meal and wine were purchased or an employee of the licensee must insert a cork in or place a cap on the bottle before the purchaser takes the bottle away. Once removed from the licensed premises, the bottle is to be considered an “open container” for purposes of the State’s Open Container Law, meaning that the bottle may not be placed in a passenger area of a motor vehicle but rather must be stored in a locked glove compartment, trunk, the area behind the rearmost upright seat, or other area that is not normally occupied by the driver or a passenger.

SB 812/ HB 1122 provides assistance to agriculture, protecting Maryland’s 22 wineries, bringing Maryland law into compliance with federal interstate commerce mandates related to discriminatory treatment between in-state and out-of-state wineries. The bill allows Maryland small wineries (not producing more than 27,500 gallons of wine annually) to retain their ability to sell directly to restaurants and retailers (as they have done since 1951), while allowing out-of-state wineries to do the same.

SB 1061/ HB 1702 authorizes the Baltimore County Board of Liquor License Commissioners to issue up to three Class B (B,W,L)(TSB) restaurant-service bar beer, wine, and liquor (on-sale) licenses in the Towson Commercial Revitalization District or the Loch Raven Commercial Revitalization District. The restaurants for which the licenses are issued must have a minimum seating capacity of 40 persons and a maximum seating capacity of 120 persons. The Board has until the end of December 31, 2011, to issue the licenses.

SB 1063/ HB 1703 authorizes the liquor board to allow the transfer of up to two beer, wine, and liquor (on-sale) licenses into the Towson Commercial Revitalization District from election district 13, 14, or 15. A license transferred is to be converted into a Class B (B, W, L) (TCRD) license for use by a restaurant with a minimum seating capacity of 100 persons and a minimum capital investment of $500,000. License transfers must be made before the end of December 31, 2009.

HB 1575 will benefit last minute shoppers in Baltimore County for the Jewish High Holidays allowing liquor stores and other licensees to exercise their offsale privileges on the Sunday before Rosh Hashanah and the Sunday before Yom Kippur.

HB 1304 is one of several local gaming bills, this one enables a qualified organization in Baltimore County to conduct a casino event that includes a card game once each calendar month, instead of once during each calendar year. A person that holds a casino event may not allow a player to bet more than $10 in any one game within the calendar month.
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Each of the bills described above can be read in its entirety at the Maryland General Assembly website Maryland General Assembly

Thank you to the Library and Information Services group at the Maryland Department of Legislative Services for the information provided that became the basis of this article.