Legislative Newsletter No. 3 — February 4, 2004

2004 General Assembly Calendar

• February 17 — "Crossover" day—last day for house of origin to act on bills
  
• February 22 — House and Senate budgets released

Money Matters

Entering the last two weeks before crossover day, the House and Senate committees dealing with state revenues are voting on various tax bills. Their actions likely will set the stage for a showdown between the two chambers over the shape of the 2004-2006 state budget. On Wednesday, the House Finance Committee defeated a couple of dozen measures that sought to raise revenue through increased income, sales, cigarette and gas taxes. One of the defeated measures was HB 1270, which would have increased the sales tax to support school construction and the At-Risk Student Achievement initiative endorsed by VACo and VML.

The House Appropriations Committee is expected to prepare its version of the budget relying only on projected revenue growth and not any tax policy changes, a move that also will necessitate state spending reductions that could total $1 billion. Meanwhile, the Senate Finance Committee will hear most of its revenue measures next week. The Senate is expected to endorse a package that enhances tax collections even more than proposed by Governor Mark Warner in December. The House and Senate versions of the budget, which will differ greatly, will be released February 22. Meanwhile, the governor has released information detailing the impact of his proposed budget and tax reform plan on each of the state's counties, cities and towns. That information can be found at www.governor.virginia.gov/Initiatives/TaxReform.

Budget difficulties did not stop legislators from submitting hundreds of proposed amendments requesting billions of dollars in state spending for various programs. Details of the proposal amendments were revealed last week. The following budget amendments were submitted by TJPD legislators and/or are of specific interest to our localities:

• Amendments to require the Department of Game and Inland Fisheries to maintain operation of the Montebello fish hatchery until July, 2006 (Abbitt, Deeds)
• An amendment requesting $500,000 to support closure of the Fluvanna County landfill (Ruff)
• An amendment to restore $6 million to the Regional Competitiveness Program (Hanger). (Another amendment proposes to restore $4.5 million to this program.)
• A language amendment to allow planning for a regional jail for Nelson, Amherst and Appomattox.
• An amendment to provide $250,000 for restoration of Louisa High School (Janis)
• An amendment to provide $115,000 for a full time Commonwealth's Attorney in Greene County (Bell)
• An amendment to provide $1 million for a new Center for Rural Virginia, as proposed by the Rural Virginia Prosperity Commission (Landes)
• An amendment to provide $300,000 to establish a Secretary of Agriculture (Landes)
• Several amendments propose approximately $215,000 each year to restore funding for planning district commissions that was reduced in the introduced budget.

Finally, in action on the House floor related to the budget, delegates last week approved HR 2, which asserts that the budget bill submitted to the General Assembly not be predicated on increasing general tax revenues that have not been authorized by law and that governors be requested to submit a budget bill utilizing existing fiscal resources without incorporating a general tax increase as part of the budget assumptions.

Legislation

House and Senate committees are making their way through heavy dockets of bills of interest to local governments. With the February 17 "crossover" day of bills looming, there remains much work to be done in committee. In action from this past week, SB 427, which would have expanded the provisions of the Chesapeake Bay Preservation Act to an additional 104 localities, was defeated Monday in the Senate Agriculture Committee. The bill had been amended to provide a two-year compliance period while regulations for implementing the program west of I-95 were being promulgated. Committee members were concerned about the costs and practicality of expanding the act when its goals had not been met for the present coverage area. The committee also rolSB 527 (which contained a $2 water fee) into SB 569 that establishes a natural and historic resources fund, a measure now being considered in Senate Finance. The House version of this bill was stricken in committee.

Senate Local Government has quashed probably the best chance for approval of an adequate public facilities (APF) bill this SB 393, the school capacity legislation that attempted to time school facilities with residential development, was carried over for the year, as was SB 351, a water resources APF bill. Various House APF and impact fee measures also have been shelved for the year. HJ 170 is proposed to continue the Growth Commission and APF discussions that were held this past year. That bill is being considered in House Rules.

Concerning environmental issues, the stormwater management consolidation bill, HB 1177, passed the House unanimously. Amendments protect existing local programs that are more stringent than the new minimum standards, and clarify that penalties from violations go to the locality's treasury. Concerning solid waste, a subcommittee has recommended that HB 1462, which contains a $5/ton solid waste tipping fee, be carried over for the year.

On FOIA issues, HB 358 is moving forward without a proposed requirement to have all state and local public bodies make an audio or video tape recording of closed meetings. HB 389, which would make newly elected officials subject to FOIA requirements as soon as they receive notice certifying their election, now includes an amendment to clarify that the public body has no responsibility for newly elected members' FOIA compliance until they actually take office.

In other action, the House of Delegates defeated HB 412 on the floor of the House last week, but two days later revived it. This measure requires cities to hold a referendum in order to increase the meals and transient occupancy taxes. At this writing, the bill had been referred back to the House Finance Committee. SB 214, approved by the Senate, expands the $5 fee courthouse security personnel fee to allow use of the assessment for equipment requested by the sheriff as well. Various House versions are all in the Courts of Justice Committee. HB 1212, creating a Secretary of Agriculture, is headed to the House floor.

Next week, BPOL bills will be considered, as will HB 1421, which eliminates the six-month requirement for notifying counties and cities of tort claims against them.

Local Bills

Here's an update on legislation requested by OR of specific interest to PDC localities:

HB 154-tax-exempt provisions for the elderly and disabled (on Senate floor)

HB 673-sheriff required to chair a regional jail board (carried over in House committee)

HB 1419-Charlottesville/Albemarle transportation district (in House Transportation)

SB 152-industrial/economic development authority (passed Senate)

SB 247-real estate tax credit for permanent public easements (in Senate Finance)

SB 248-revisions to disability provisions for disabled veterans (passed Senate)

SB 252-bicycle safety changes (on Senate floor)

SB 267-authorization for Rivanna River Basin Commission (in Senate Rules)

SB 373-state industrial access road funds (no action in Senate committee)

SB 374-admissions tax authorization for all events (carried over in Senate committee)

SB 375-use of transient occupancy tax revenues (carried over in Senate committee)

SB 670-required construction of Rt. 29 bypass (in Senate Transportation)