Anheuser-Busch to buy Grupo Modelo?

Anheuser-Busch InBev has made a bid to purchase Grupo Modelo, the maker of Corona. The Justice Department has filed suit to block the merger, stating that the two companies account for 46% of the $80 billion of annual beer sales in the US, and contends that this is too large of a share of the market.

Maryland grocery stores and liquor sales

From the Baltimore Sun: Groceries seeking ways around wine sales ban

Wine - To Go?

From the Baltimore Sun, a follow up article to their previous article about growler sales in Howard County: Wine-to-go containers added to bill allowing 'growler' sales in Howard Co.

Farmers disagree over proposal to relax zoning rules for pick-your-own operations

From Explore Howard: Farmers disagree over proposal to relax zoning rules for pick-your-own operations

Along with jobs, Fort Meade growth brings traffic concerns

From the Baltimore Sun: Along with jobs, Fort Meade growth brings traffic concerns

Howard County Board of Appeals approves farm use as wedding venue

The Howard County Board of Appeals approve the use of a farm on Jennings Chapel Road as a wedding venue and antiques store

Innovations in Wellness Awards

In October, Healthy Howard, Inc., certified 46 local businesses as "Healthy Workplaces". "The Healthy Workplaces program, a part of the County’s overall Healthy Howard Initiative, certifies county businesses that meet specific criteria in six main areas of worksite wellness-physical activity, mental health, environmental health,nutrition, safety and culture of wellness."

Just this past week, Healthy Howard awarded Tower Federal Credit Union and Verizon Wireless for their innovations in wellness. The program awarded $500 to businesses from three categories: small, medium, and large. Businesses that wanted to highlight specific policies designed to benefit the overall health of their workplaces were encouraged to apply for their Innovation Award. The Howard County website lists the benefits of being a member of Healthy Howard as including:

• Public recognition of membership in Healthy Howard from the Health Department
• Increasing employee morale by committing to their well-being
• Eligibility to win an Innovations in Wellness Award
• Business listed in print, and in online publicity
• Healthy Workplaces plaque for display
• Worksite wellness-related newsletters and resources from the Health Department
• Health Department support of efforts and plans for activities and policy development
• Improved employee health and productivity resulting in cost savings

The website also provides a toolkit for initiating healthy workplace policies, a manual for assessing your business's policies, and a list of healthy alternatives for workplace vending machines.

Banks Giving Away Foreclosures

Earlier in the week, the Washington Post reported that some banks are giving away foreclosed properties rather than trying to maintain and sell homes in blighted areas. The article highlighted the efforts in Cleveland to minimize the damage an abandoned home can do to an already depressed neighborhood. In Cleveland, the Cuyahoga County Land Reutilization Corporation receives properties from banks which donated under an Ohio law passed in 2009 designed to created county land reutilization corporations (LRCs) - which are being referred to as land banks.

Land banking is a traditional method of investing. A purchaser will acquire large tracts of undeveloped land and hold the property until the time it becomes profitable again. In Cleveland, however, the Cuyahoga County Land Reutilization Corporation operates a little differently. The group "is committed to the healthy, sustainable redevelopment of Cuyahoga County. The CCLRC will exhibit this ongoing commitment through efforts such as deconstruction, the appropriate and innovative re-use of vacant land, and the use of energy efficient, green rehabilitation and new construction standards."

Benefit Corporations, Benefit LLCs, and Marketing

In June, Maryland saw the creation of America's first benefit LLC, Clean Currents, a green energy company. Clean Currents was created under the recently passed SB 595, a follow up to the state's benefit corporation law passed last year. SB 595 was sponsored by State Senator Jamie B. Raskin (D-Mont).

Two weeks ago, Governor Martin O'Malley attended the inauguration of Blessed Coffee, a Takoma Park coffee shop. Blessed Coffee is a registered benefit corporation under the law passed last year. The company has pledged to allocate 50% of its net profits from wholesale revenue to social programs in Ethiopia's coffee growing regions, and 50% to community based organizations. O'Malley said of Blessed Coffee that “(i)t's a corporation that looks at not only the bottom line of profit, but also the bottom line of social responsibility.”

The Washington Post article, Takoma Park coffee firm holds 'Blessed' event, in quoting Raskin highlights one of the challenges the state has in encouraging benefit corporations:

“'The law allows community-minded companies to take the high bid,'    Raskin said.

The main benefit of the law, however, is as a branding and marketing tool. The community feels that it's a part of the business, and people are often willing to pay for products when they know the money goes toward groups and causes they support, Raskin said.” (sic)

Cause marketing can be effective. A 2010 study said that 41% of Americans have purchased a product in the past year because the product was associated with either a social or environmental cause. The same study said that 88% of Americans think it is acceptable for a company to involve a cause or issue in its marketing; contrast this to the Millenial Americans, of whom 94% think it is acceptable for a company to involve a cause or issue in its marketing. Additionally, Millenials use a company's support of social or environmental issues to determine other corporate interactions. 87% of Millenials use social and environmental causes as a benchmark to determine where to work. 79% of Millenials use the same benchmark to determine where to invest. As Millenials become more active participants in the marketplace, benefit corporations and benefit LLCs are poised to reap the benefits (pun intended).

B Corps in Maryland

Benefit Corporations (also known as B Corps) are corporations formed with the intent to create a beneficial public good. B Corps are held to a higher standard than traditional corporations in that they must create social, environmental and community benefits. The first official B Corp was created in 2007, when Method, a manufacturer of green cleaning products, amended their corporate documents to reflect their intention of benefitting the public good through their business practices. Maryland became the first state to create a separate legal entity for B Corps in April 2010.

B Labs, is a non-profit which provides certification as a B Corp to qualified business applicants. The goal of B Labs is to prevent corporations from “greenwashing”, by providing a third-party stamp-of-approval for businesses that are actually fulfilling their claims. Certification is a stringent process, which requires passing B Labs B Impact Rating System. Applicants fill out a 220 question survey with questions delving into things such as recycling practices, employee demographics, community involvement, and employment benefits. B Labs compiles the results, and after tallying the points, grants certification to companies that have met the minimum passing rate.

On B Labs website, the organization features highlights of some corporations which have passed certification. Emphasized areas include employee demographics, sustainable environmental practices, and community involvement. For example, B Corporation says Method has “>50% women” as employees, has “>50% facilities LEED certified”, and that “>50% employees participate in company-wide service days”.

B Labs certification is not required for a Maryland company to register as a B Corp, but it certainly helps for the business to prove that the requirements of the Maryland law are being met. Additionally, certified B Corps can obtain discounted goods and services from other certified B Corps.

There are currently no tax incentives for B Corps at either the federal or state level. Philadelphia recently instituted a tax break for B Corps, a move that is expected to inspire other municipalities to offer similar incentives. Additionally, it is not unreasonable to assume that state and federal tax law will eventually be amended to reflect the unique nature of B Corps.

If you have any further questions about how becoming a B Corp can benefit your business, please feel free to contact our office.

FastTrack for Business Development

On June 30, 2011, Maryland Governor Martin O'Malley held a press conference about his initiative, FastTrack, part of the Maryland Made Easy program. Under Executive Order 01.01.2011.12, also known as the Governor's Economic Development and Job Creation Fast Track, O'Malley seeks to create jobs through expediting the review of business and economic development projects that will have significant impact on their respective communities.

FastTrack coordinates the review process by state agencies, such as the Department of Business and Economic Development and the Environmental, Planning, Housing and Community Development. FastTrack complements the Central Business Licensing Initiative already in use under the Department of Business and Economic Development and the Department of Information Technology by providing “a one-stop shop to complete and submit various applications and permits regardless of agency or type of business.” For a project to be eligible for FastTrack review, it must meet certain criteria. First, the project must expect to produce jobs or economic development that will significantly impact Maryland, the region, county or municipality. Second, the project requires that Maryland issue at least one permit. Lastly, the project must either be in a Priority Funding Area, or meet the criteria for an exception. A priority funding area is usually a Protected Forest Area, Transit Oriented Development, an Enterprise Zone, or a Critical Area. A project developer can easily check if his project falls within a Priority Funding Area through an interactive map on the Maryland Made Easy website, www.easy.maryland.gov.

Not all projects will receive FastTrack review. Applications for FastTracking must be submitted to the FastTrack Coordinating Committee. Projects will be evaluated under eight criteria. First, the committee will consider the significance of the potential economic, job and business development of the project of the project in relation to the size of the jurisdiction that the project will benefit. Secondly, the committee will consider whether the project is designated a priority project by local government. Third, the committee will look at whether the project involves either infill development or redevelopment. Fourth, the committee will consider whether the project conflicts with an important state policy of goal, such as whether the project is located in a targeted ecological area. Fifth, the committee will determine whether the project furthers an important state policy or goal. Sixth, the committee will look at how quickly the project will proceed after receiving the necessary permits and approvals. Seventh, the project's environmental impacts will be considered. Lastly, the committee will consider it's own capacity to manage projects accepted for review.

Projects that are recommended by the FastTrack Coordinating Committee must then be brought before the Chair, who will then decide whether to accept a project for review. The Lieutenant Governor will Chair the FastTrack Coordinating Committee. Current Lieutenant Governor Brown said “Governor O'Malley and I believe that state government has a responsibility to lay the foundation for job creation and economic growth in Maryland, and making it easier for companies to do business in our state is a key part of that effort. Our new fast track initiative will help expedite the business development process while maintaining standards for smart growth and environmental protection. I am honored to lead this effort on behalf of Governor O'Malley and I look forward to working closely with Maryland's business community to make the FastTrack program a success.”

For more information, please feel free to contact our office.