March 9, 2012

Issues: Air Quality.......... Page 2 Animal Care........ Page 2 Annexation.......... Page 2 Biosolids.............Page 2 Commodities..Page 2-3, 8 Energy...........Page 3,7-9 Farmlnd Pres..Page 3, 7, 9 Forestry.........Page 3, 10 Game Laws...Page 3, 7, 10 Labor................Page 10 Land Use.....Page 4, 10-11 Litter.................Page 7 Property Rights ..Page 4-5 Reorg. of Govt.......Page 5 Rural Health.........Page 6 Taxes.................Page 6
Transportation Page 6-7, 11

Farm Bureau has 34 successes at General Assembly

The General Assembly is wrapping up its business other than voting on a state budget. Regarding the state budget, the good news is that the House and Senate have a group of legislators meeting as unofcial budget conferees to see if they can begin to work out the differences between the House and Senate versions of the budget that was reported from their committees in February. The unfortunate news is that they will be called back into special session sometime this spring to pass the budget. We will send an electronic Capital Connections report once we have some certainty on what is contained in the budget. Instead of waiting until the budget is resolved, we decided to send you a wrap-up of the other General Assembly issues. Based on the issues in this report, Farm Bureau policy prevailed on 34 out of 40 policy issues. These numbers will increase when we analyze the budget issues. We determine our successes based on Farm Bureau policies and not based on the number of bills. Earlier this week, Southside Field District held their policy development meeting. During their training portion of the meeting, the members brainstormed on tools that would be helpful to provide to producer members to help them understand the types of issues Farm Bureau works on as well as to be utilized as a membership tool. We will be taking some of those ideas and developing handouts or county newsletter articles for county Farm Bureau leaders to utilize. The Field Services Department is working on membership benets presentation for county leaders to use as well. If you have an idea of some type of tool that you need to better communicate with your producer members regarding legislative issues, please contact Kelly Pruitt, Grassroots Coordinator, at Kelly.Pruitt@vafb.com with that idea. Now that state Farm Bureau policy implementation on legislative issues is just about complete, it is time to begin our process to determine Farm Bureau policy positions for 2013. Now is the time to reach out to producer members to seek their views on Farm Bureau policy for the next General Assembly. Our policy process is based on a representative democracy. As county Farm Bureau leaders, I encourage you to reach out to your producer members to seek their input prior to your county Resolutions Committee meeting to determine your county Farm Bureau resolutions. This is the best way to keep our grassroots process strong. Your district Field Services director is available to help you talk about ideas to involve producer members.

Water Quality......Page 11

Virgina Farm Bureau Governmental Relations Staff Martha Moore Vice President Wilmer Stoneman Associate Director Andrew Smith Senior Assistant Director Lindsay Reames Assistant Director Trey Davis Assistant Director Kelly Pruitt Grassroots Coordinator Norma Opel Administrative Assistant

Where Farm Bureau Policy Prevailed

AIR QUALITY
Legislation failed that would have required the Air Pollution Control Board to develop a model ordinance for localities that could be used, at the discretion of the locality, to regulate air pollution emissions resulting from the use of outdoor hydronic heaters such as residential wood-red boilers. Farm Bureau opposed this bill. (Ruff)

ANIMAL CARE
Legislation failed that would have provided that a court may include in a protective order provisions granting to the petitioner the care, custody, and control of an animal owned, possessed, or kept by either the petitioner, the respondent, or a child residing in the household. (McClellan) Legislation was defeated that would have allowed any locality to prohibit the tethering of animals. (Alexander) Legislation was carried over for the year at the request of the patron that would have redened agricultural animals to include certain companion animals including dogs. The legislation would have also changed how agricultural animals are regulated and handled. (Black)

ANNEXATION
Legislation passed that provides a continuation of the current moratorium on annexation by cities through 2014. (Minchew)

BIOSOLIDS
A bill was defeated for this year and carried over until 2013 General Assembly that would have authorized a locality, by ordinance, to prohibit the land application of sewage sludge (biosolids) within its boundaries. (Gilbert)

COMMODITIES AND ECONOMIC DEVELOPMENT

Legislation passed that will create the Governors Agriculture and Forestry Industries Development Fund. This legislation will establish an economic development grant program targeted specically at agricultural and forestry operations. Grants will be approved by an advisory committee to support localities efforts to attract value-added or processing facilities using Virginia-grown products. Farm Bureau was active in providing comments in the drafting of the language. (Landes) (Stanley) Legislation passed that increases membership of board of directors and adds the Secretary of Agriculture and Forestry and the Secretary of Technology as voting members of the board of directors of the Virginia Economic Development Partnership Authority. (Scott, E.T.) (Hanger) A resolution passed commending the Virginia Wine Industry on the occasion of its 250th anniversary. (Webert) (Vogel)
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COMMODITIES AND ECONOMIC DEVELOPMENT continued

At the patrons request, the legislation was stricken from the docket in subcommittee that would have exempted stores that are owned and operated by a farmer, that are located on the farmers land, and that sell agricultural products from being inspected by the Virginia Department of Agriculture and Consumer Services. The legislation could have potentially allowed the sale of raw milk and uninspected meat directly to consumers threatening the food supply. (Ransone) Legislation was killed in committee that requires a label on any food derived in whole or in part from a genetically-engineered organism if that organism can be detected in the food at a level two or more times the limit of detection of the most sensitive method commercially available for detecting that particular type of genetically-engineered organism; any food product prepared or processed using a genetically-engineered organism, enzyme, or other genetically-engineered processing agent, whether or not the organism, enzyme, or agent is present in the nal product; or any dairy or meat product derived from livestock that has been fed any material derived from a genetically-engineered organism or has been injected or treated with genetically-engineered hormones or drugs. (Vogel)

ENERGY/REGULATED UTILITIES
Bills passed to expand the denition of renewable energy to include landll gas. The measure also provides that the RPS Goals under the renewable energy portfolio standard program may be composed of renewable thermal energy equivalents. (Cosgrove) (Watkins)

FARMLAND PRESERVATION
A bill to allow James City County to have agricultural and forestall districts has passed. (Pogge)

FORESTRY
Legislation passed that directs the Department of Forestrys forest tree nurseries to continue to use methyl bromide gas fumigation in their pre-seeding land preparation under the U.S. Environmental Protection Agencys listed usage exemption QPS (Quarantine & Pre-Shipment). The bill also authorizes the Department of Agriculture and Consumer Services to issue a phytosanitary certicate or a permit verifying that shipments of conifers and hardwood seedlings are free of pests and diseases. (Knight) (Watkins) Bills passed that limit the payment made to localities by the Department of Forestry to onefourth of the gross proceeds derived solely from the sale of timber harvested on state forest lands. Currently, localities receive one-fourth of the gross proceeds from revenue generated by any revenue-generating activity occurring on state forest lands. (Ransone) (Ruff)

GAME LAWS
Legislation failed that prohibits hunting without permission or authority, while carrying a rearm, on land where the hunter knows a No Trespassing sign is posted or where the hunter should know entry is prohibited. This bill was amended to provide a parliamentary procedure to keep Sunday hunting legislation alive. Farm Bureau opposed the bill in its amended form. (Loupassi) Legislation passed includes game animals and fur-bearing animals in the denition of nuisance species. The current denition of nuisance species excludes such animals. The intent was to recognize coyotes and feral hogs in this code section. (Yost) Bills failed that allows a person to hunt or kill any wild bird or wild animal on Sundays on private lands and public waters. It was amended on the Senate oor to include a 250-yard buffer around churches. Other bills also failed that made some other modication or restricted version of Sunday Hunting. Farm Bureau opposed each of these bills. (Northam) (Lingamfelter) (Moreeld) (Ramadan) (Webert)

LAND USE ASSESSMENT

Legislation was carried over and defeated for this year that would allow roll back taxes to not be paid on property that loses its designation as devoted to agricultural use because of excavation of sand or gravel if it returns to agricultural use after two years. Farm Bureau opposed the legislation based on our policy supporting the current land use assessment taxation system as is. (Orrock)

PROPERTY RIGHTS
The constitutional amendment will now be on the ballot in fall of 2012 for Virginia voters to approve. Farm Bureau will be enacting a campaign this summer and into the fall to educate the public and encourage approval of the constitutional amendment. (Bell, Robert) (Obenshain) Legislation passed that will develop the appropriate procedural process to place the constitutional amendment on the 2012 ballot. The question on the ballot will read: Shall Section 11 of Article I (Bill of Rights) of the Constitution of Virginia be amended (i) to require that eminent domain only be exercised where the property taken or damaged is for public use and, except for utilities or the elimination of a public nuisance, not where the primary use is for private gain, private benet, private increasing jobs, increasing tax revenue, or economic development; (ii) to dene what is included in just compensation for such taking or damaging of property; and (iii) to prohibit the taking or damaging of more private property than is necessary for the public use? If the question is approved by a majority of Virginia voters, then the Constitution will be amended to incorporate the new language. (Bell, Robert) (Obenshain)

PROPERTY RIGHTS continued

Legislation has passed dening lost prots and lost access per the language in the constitutional amendment. These lost prots and lost access pieces of legislation as passed, were a result of a compromise between property rights advocates, condemning authorities, the Attorney Generals ofce, and the patrons. Lost prots and lost access will be added as elements in determining just compensation for eminent domain takings beginning January 1, 2013, upon the passage of the constitutional amendment. (Joannou) (Obenshain) Lost access has been dened as an impairment of direct access to your property as a result of an eminent domain taking. When determining the amount of money you will be owed, you have to prove a loss in market value caused by the taking or damaging of the property. If, for example, you lose access to the main entrance to your farm and have to drive a half mile around to the back part of your farm to gain access, it will now be compensable by the courts. If there is a slight change in access that does not affect your business or the fair market value of the land, it will not be compensable. Lost prots means a loss of business prots for a business or farm operation for a three year period after your property is taken. The farm operation must be operated by the owner of the property, or by a tenant leasing the majority of the property taken. To claim lost prots, you will need to provide the condemner with your federal income tax returns relating to the business or farm operation for which the owner seeks lost prots for a period of three years prior to and for each year thereafter during the pendency of the condemnation proceeding. The condemner can not divulge the tax information. For most farm related eminent domain takings, much of the value in your farm is related to the fair market value of the land. If current crops, buildings, or livestock are lost as a result of eminent domain, you are already provided that compensation from the courts under current law. You are also already paid just compensation for relocation assistance to move your farm or your business. Legislation passed to clarify that utilities and localities will still be able to practice eminent domain for legitimate public use activities such as the installation of water and sewer lines. This was necessary to address some of local governments issues with the constitutional amendment. This was understood as the intent of the original statute since 2007. This codies this agreement. (Bell, Robert) (Newman)

REORGANIZATION OF GOVERMENT
Legislation passed that will reorganize some state agencies, some boards and certain local transportation entities. This bill is the result of an effort by Governor McDonnell to reduce the size and scope of government. There were four sections that impact agriculture and forestry: merging Reforestation of Timberlands Board into the Board of Forestry; merging the Seed Potato Board into the Potato Board; merging the Bright Flue-Cured and Dark Fired Tobacco Boards; merging the Pesticide Control Board into the Virginia Department of Agriculture and Consumer Services Board. (Gilbert) (McDougle)
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RURAL HEALTH
Legislation has passed that allows nurse practitioners to practice as part of patient care teams where a physician licensed to practice medicine in the Commonwealth provides management and leadership. Farm Bureau supported the legislation per our policy to support the practice of nurse practitioners under the off-site supervision of a physician. The bill is seen as a large compromise between physicians and nurse practitioners. (OBannon)

TAXES
Legislation passed that creates a Beehive Grant Program beginning January 1, 2013, any individual who either purchases a new hive or purchases materials or supplies to construct a new hive may apply for a grant from the Fund. The grant shall be in an amount equal to $200 per new hive, not to exceed $2,400 per individual per year. (Scott, E.T.) (Deeds) Legislation was defeated in subcommittee that would have increased cigarette and other tobacco products tax rates. (Hope) Legislation was defeated that would have reinstated the estate tax for persons dying on or after July 1, 2012. (Watts) Legislation was introduced to make the existing tax credit for riparian forest buffer protection for waterways refundable. Currently, the tax credit may be carried forward for ve taxable years, but is not refundable. Farm Bureau supports making the tax credit refundable; however, the bills were amended in committee turning the tax credit into a grant program. Farm Bureau expressed concern over this change due to the need to advocate for funding each year for a grant program. We worked with the patrons to withdraw the legislation and keep the current tax credit in place. (Ware, R.L.) (Hanger) Legislation passed that establishes the Joint Subcommittee to Evaluate Tax Preferences in the legislative branch of government. The Joint Subcommittee will be permitted to direct that the Department of Taxation, under the Joint Subcommittees guidance and instruction, conduct independent evaluations of tax preferences and report its ndings to the Joint Subcommittee. (Landes) Legislation passed that allows a county, city or town to exempt, partially exempt, or set a lower tax rate for motor vehicles used exclusively for farming. (Fariss)

TRANSPORTATION
A bill that would have increased the maximum tandem axle weight limit from 34,000 pounds to 40,000 pounds was carried over to the 2013 Session to allow DMV and the industry to work on proper language. This would correct the axle weight allowed in a limited overweight permit. (Lewis) Legislation passed that claries the Code of Virginia to make it clear that smaller pickups are allowed to use the unlicensed Farm Use designation. (Cline) A bill that provides a uniform method of assigning cost-based fees based on the amount that a vehicle is overweight. The bill also allocates payment of fees into specic funds. The bill has a delayed effective date of January 1, 2013. (Note: Agricultures overweight allowances are left untouched.) (May) (Keam)
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TRANSPORTATION continued
Bills were carried over to the 2013 Session that would have expanded the denition of allterrain vehicles to include six-wheeled vehicles and vehicles that can carry passengers and narrows the denition of all-terrain vehicles to exclude riding lawn mowers. The bills also expanded the denition of utility vehicles to include those with more than 25 horsepower. (Hugo) (Newman)

Where Farm Bureau Policy Did Not Prevail

COMMODITIES
Due to budget constraints, a joint subcommittee to study the horse racing industry in the Commonwealth was not recommended to move forward at this time. (Scott, E.T.) Legislation was carried over in the Finance Committee along with a number of other tax credits that would have raised the total annual amount of tax credits available under the farm wineries and vineyards tax credit to $500,000 for tax years beginning on or after January 1, 2012. (Garrett, Scott)

ENERGY/REGULATED UTILITIES
A bill failed that would have established a procedure by which a manufacturer of incandescent light bulbs in Virginia may obtain a license from the State Corporation Commission. There were concerns regarding the constitutionality of the requirement. (Marshall, R.)

FARMLAND PRESERVATION
Legislation was introduced that increased the land preservation tax credit from 40 percent to 50 percent of the fair market value of the conveyance for working farmers, for tax years beginning on or after January 1, 2013. Per our policy, we supported the concept of the bill. The legislation was struck at the request of the patron from much opposition from the conservation community. They felt that the percentage increase should apply to all qualifying lands, not just agricultural. (Hanger)

GAME LAWS
Legislation failed that removes the authority of the Board of Game and Inland Fisheries to appoint the Director of the Department, resulting in the Governor making the appointment. Farm Bureau supported. (Stuart)

LITTER
A bill failed that imposes a tax of 20 cents ($0.20) on plastic bags used by purchasers to carry tangible personal property purchased in grocery stores, convenience stores, or drug stores. Farm Bureau supported this legislation. (Morrissey)

Other Bills of Interest

(Farm Bureau did not take a position on these bills but tracked them because of the potential to impact our policy because of the relevant Code sections or were discussed by our members.)

COMMODITIES
Legislation died that would have exempted private homes from food safety inspections when the resident processes and prepares pickles, relishes and salsas for sale to individuals at the home or at farmers markets and labeled NOT FOR RESALE - PROCESSED AND PREPARED WITHOUT STATE INSPECTION. Private homes where candies, jams, jellies and baked goods are prepared and distributed accordingly are already exempt from inspection. (Habeeb) Legislation failed that would have instructed the Board of Agriculture and Consumer Services to adopt regulations for the control of invasive plants. (Hope) Legislation failed that would have made it a Class 1 misdemeanor to privately possess, sell, transfer, or breed dangerous wild animals, except by bonade sanctuaries, zoos or aquariums. The bill would grandfather in the ownership of any existing lawful exotic animals; under certain conditions in order to maintain possession of the exotic animals. The legislation describes the procedures to be followed in the seizure and care of dangerous wild animals. (Peace) (Lucas)

ENERGY/REGULATED UTILITIES
A measure passed permits a natural gas utility to construct the necessary facilities of a qualifying project and to recover the eligible infrastructure development costs necessary to develop the eligible infrastructure for designated projects in future rates. (Marshall, D.) A bill was continued to the 2013 Session that authorizes individual retail electric customers who are eligible customer-generators under Virginias net energy metering program to purchase electricity provided 100 percent from renewable energy exclusively for their own consumption from a net metering seller. (Kilgore) A bill failed to pass that revises the requirement, enacted in 2011, that a customergenerator pay a monthly standby charge that allows its supplier to recover a portion of its infrastructure costs. The revisions provide that a supplier shall not assess standby charges until it has 1,000 customer-generators and that a supplier has the option not to assess standby charges on its customer-generators. (Toscano) A measure passed that authorizes investor-owned electric utilities to earn an enhanced rate of return, equal to 150 basis points above the authorized rate of return, on their investments in generation facilities that are red by landll gas produced in a solid waste management facility licensed by the Waste Management Board. (Marshall, D.) A bill failed that would have required the State Corporation Commission, when required to approve the construction of any electrical utility facility, to consider the long-term price stability of any fuels used in the generation of energy from the facility. (Lopez)
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ENERGY/REGULATED UTILITIES continued

A bill passed that provided that an energy efciency program proposed by an electric utility is in the public interest if the net present value of the benets exceeds the net present value of the costs as determined by any three of four benet cost tests. The four tests to be considered are the Total Resource Cost Test, the Utility Cost Test (also referred to as the Program Administrator Test), the Participant Test, and the Ratepayer Impact Measure Test. An electric utilitys energy efciency program may be deemed to be in the public interest if it provides measurable and veriable energy savings to low-income customers or elderly customers. (Ware, L.) Legislation failed in committee that would have required the State Corporation Commission to establish a program of community net metering, which will allow a group of residential, commercial, industrial, and other customers to establish an eligible community customer to act collectively to generate renewable energy for their own use. Members of an eligible community customer may develop a net metered system that provides that excess generation by some members of the group will be used to offset consumption by other members within the group. The generating capacity of an eligible community customers facility shall not exceed two megawatts at a single site. (Minchew) A bill failed to pass that would have eliminated the performance incentive provision in the renewable energy portfolio standard program that entitles any investor-owned electric utility to a 50 basis point increase in its authorized combined rate of return on common equity if it meets the programs RPS Goals. (Poindexter) Legislation passed that allows any investor-owned electric utility that participates in the renewable energy portfolio standard program to meet up to 20 percent of an RPS goal through certicates evidencing the utilitys expenses in conducting research and development activities related to renewable or alternative energy sources. Also allows double credit for energy created from animal waste. (Miller, J.) (Norment) Bills passed that require each utility participating in the renewable portfolio standard program to identify, in its annual report to the State Corporation Commission, the states where the renewable energy was generated, the decades in which the renewable energy generating units were placed in service, and the fuel types used to generate the renewable energy. (McClellan) (McEachin) A bill failed in Committee that directed the Commission on Electric Utility Regulation to study the establishment of a mandatory renewable energy portfolio standard program for the Commonwealth. (Herring, C.)

FARMLAND PRESERVATION
A bill passed that provides that a transfer of development rights (TDR) ordinance may permit a sending property, subsequent to severance of development rights, to be used for certain types of parks and campgrounds. The intent of the legislation is to make more land available for the TDR program in localities. (Dudenhefer)
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FORESTRY
A bill was pulled by the patron that required the owner of any property on which timber is to be cut to send written notice to all adjoining property owners at least 60 days before cutting timber and to send written certication to the State Forester that such notice was sent at least 45 days before cutting timber. Farm Bureau worked with the patron so that stakeholders can meet during the year to continue discussing the issue. (Johnson)

FUEL TAX
Farm Bureau monitored several bills that in some form increased the motor fuel tax that were defeated. They varied from raising the rate to changing to a percentage tax to adding a surcharge. (Albo) (Englin) (Howell, A.T.) (Purkey) (Scott, J.M.)

GAME LAWS
A bill passed that modied the hours for the training of dogs to hunt bear. The introduced bill would have allowed bear chasing with hounds 24 hour per day. Currently, the training of dogs to hunt bears is limited to one-half hour before sunrise until four and one-half hours after sunset. This practice often leads to land owner conict late at night. These bills were amended to allow for the practice to occur from 4:00 AM until 10:00 PM. (Wilt) (Puckett) Legislation failed that makes it a Class 1 misdemeanor for any person to erect or maintain an enclosure for the purpose of pursuing, hunting, or killing or attempting to pursue, hunt, or kill a fox or coyote with dogs. It is also a Class 1 misdemeanor to pursue, hunt, or kill or attempt to pursue, hunt, or kill a fox or coyote within such an enclosure with dogs. These bills were carried over until 2013 and will be studied by the Department of Game and Inland Fisheries. (Marsden) (Plum)

LABOR
A bill that exempts children from certain provisions of the child labor laws if they are employed by (i) their parent or a person standing in place of their parent or (ii) an employer that is a business entity primarily owned by a family member or members and the parent or person standing in place of the parent consents. This bill does not alter the current farm family exemption. Farm Bureau monitored this bill to make sure the farm family exemption remained in place. This bill was carried over until 2013 General Assembly. (Cosgrove)

LAND USE ASSESSMENT

A bill passed the General Assembly clarifying what land lling activities are allowed on agriculturally zoned land. The bill claries that non-agricultural excavation material, waste, or debris cannot be stored on the farm without a special use permit. These types of activities are already regulated under the Virginia Waste Management Act. Farm Bureau worked with the patron and other interested parties to ensure that the legislation did not impact agricultural operations. (Hugo) Legislation failed that would have prohibited localities from adopting an ordinance regarding a shooting sport range. (Morris)

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LAND USE ASSESSMENT continued

Legislation has passed that states that no prior use of any property shall be considered in determining its current use for land use assessment taxation purposes. While the current use of the land is already the ultimate factor in determining whether it meets the qualications necessary for land-use assessment, the patron wanted the legislation to give some clarity to a few specic instances in his district. (Orrock) The General Assembly passed a bill that will require the local county assessor to separately assess the fair market value of wetlands on your property if you request it as a property owner. (Orrock)

TRANSPORTATION
A bill was pulled by the patron that would have increased the maximum distance that an unregistered farm use vehicle may be driven on a highway to obtain agricultural or horticultural supplies from 30 to 200 miles and to transport farm produce or livestock from 50 to 300 miles. (Fariss)

WATER QUALITY
Legislation failed that authorizes the governing body of a county or city in a soil and water conservation district to enact an ordinance requiring that the localitys representatives on the district board be appointed by the governing body rather than elected by the registered voters, as is currently required. (LeMunyon) A bill passed that authorizes the development and support of the Voluntary Nutrient Management Plan Program. Specically, the funds will be used to develop web-based planning software and training materials for those implementing nutrient management plans on their lands. Farm Bureau was initially concerned with the funding source because it would have utilized funds from the Natural Resources Commitment Fund which those funds were designated to fund agriculture best management practices. (Lingamfelter)

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Dont forget to check out the VFB Governmental Relations blog, Plows and Politics, at www.vfbplowsandpolitics.blogspot.com for updates on Farm Bureaus ciritical legislative issues. The blog is updated on Tuesdays and Thursdays. If you have any questions or comments about the blog, please email Kelly.Pruitt@vafb.com.

Virginia Farm Bureau Federation P.O. Box 27552 Richmond, VA 23261