Legislative Newsletter - January 23, 2006

Number 2

Calendar for 2006 General Assembly Session

January 24 - House and Senate member budget amendment requests released

February 14  - “Crossover”day—last day for house of origin to act on bills

February 19 - House and Senate budgets released

OVERVIEW

New Governor Tim Kaine addressed a joint session of the General Assembly a mere two days after he took office. About half of his speech was focused on transportation (see below for information on his transportation funding plan). He emphasized that the state should not pass unfunded mandates off onto local governments. He said he would reject such bills whose burdens can only be met by increasing property tax bills. He’s also backing legislation to require that annual assessment letters contain more information for taxpayers so that they are aware of the effect of assessment increases and know how to participate when their local government sets tax rates.

Both the governor and the Senate Finance Committee released their transportation proposals the end of last week. Both plans propose new revenues for transportation, which, when fully implemented, would generate about $1 billion in new funding each year. A key feature of both plans is an increase in the motor vehicle sales (titling) tax from 3% to 5% (the Senate phases in the increase). Kaine’s plan also would double the automobile insurance premium tax and enact new abusive driver fees. The Senate plan also would apply the 5% sales tax to the wholesale price of gas.

The governor’s plan would increase construction funding by eliminating the maintenance deficit, double mass transit funding, provide state match for federal earmarked dollars and increase local revenue sharing programs. The Senate plan would create both an urban congestion relief and a rural transportation fund, would free up construction funding with new maintenance funding and increase funding for mass transit. It also provides funding to the intermodal office, partly to provide technical assistance to localities.

Concerning transportation and land use planning, both plans would require traffic impact statements in certain cases and endorse transfer of development rights programs. Kaine’s proposal also includes a bill clarifying existing law so that localities are able to reject rezoning requests if a proposed new development would overwhelm the transportation network. The Senate plan enhances the requirement for a transportation plan in the local comprehensive plan and endorses a statewide, required clustering program.

On the House side, House Transportation Committee chairman Leo Wardrup has a plan to use $1.2 billion in general funds annually for roads and transit, utilizing recordation taxes, all insurance tax premiums and diverting more of the sales tax to transportation. Additional transportation proposals from House leadership are expected to be announced soon.

Budget amendments submitted by legislators by last Thursday’s deadline are expected to be available on Wednesday. Governor Kaine submitted a handful of amendments as well. They include amendments 1) to increase teacher salaries by an additional 1% on top of the 3% payraise included in the introduced budget; 2) to provide for a study of the HB 599 program, to include policy goals and allocation of funds; 3) to provide $2.5 million for the Housing Partnership Fund; 4) to provide $2.5 million for farmland preservation; and 5) to provide $1.6 million for elderly care. The administration also has updated the forecast for corporate income taxes to produce an additional $53 million…..a re-forecast for all state revenue streams will be given to legislators in mid-February.

LEGISLATION

The House and Senate have approved identical bills (SB 57 and HB 647) that provide for a new regime of credits that can be used in meeting the required recycling rate, which is reduced from 25% to 15% for less densely populated areas (fewer than 100 persons per square mile) and those with high unemployment rates. They also stipulate that not meeting the required recycling rate cannot be the sole reason for denying a waste permit. The Senate also approved SB 219 to require localities to calculate and publish in its budget a revenue-neutral tax rate in reassessment years. The Senate Agriculture Committee has approved legislation, submitted by Sen. Ed Houck, designed to control dangerous dogs. Meanwhile, the House Finance Committee today approved a telecommunications tax bill designed to simplify various state and local taxes and fees into one 5% tax.

When the dust settled after last Friday’s filing deadline, legislators had submitted more than 2,700 bills and resolutions for consideration. More than three dozen eminent domain bills were submitted. All legislation must be acted on in its house of introduction by February 14. Here are more to add to our growing list (at this writing, some bills did not have printed text available):

HB 820            Expands impact fee authority to all localities and to include school improvements.

HB 1150          Establishes the Virginia Chesapeake Bay Clean-Up Fund.

HB 1159          Requires law enforcement agencies to adopt policies on high-speed pursuits.

HB 1170          Requires localities to maintain an agency of emergency management and to appoint a coordinator for it.

HB 1196          Authority for assessment of impact fees prior to building permit issuance.

HB 1197          Authority for assessment of impact fees for larger, fast growing localities.

HB 1225          Requires localities to incorporate smart growth policies into their comprehensive plans.

HB 1243          Requires electronic pollbooks to provide a continuous paper printout of voters' names (also SB 424).

HB 1318          Allows localities to deny development requests due to inadequate water resources.

HB 1375          Requires certain plats to be forwarded to the state for review within five days of receipt by the locality.

HB 1422          Allows localities with PDR programs to accept voluntary proffers for open space.

HB 1506          Voluntary cash proffer payments (also HB 1520).

HB 1513          Coordination of state and local transportation planning (also SB 699)

HB 1528          Requires a CIP to include cost estimates of transportation improvements contained in the locality's comprehensive plan.

HB 1529          Requires the comprehensive plan to be general in nature and that it include an official map that shows road and transportation improvements.

HB 1603          Requires owners or operators of certain multi-line telephone systems to ensure that a public safety answering point is able to identify the location from which a call to 9-1-1 is placed.

SB 373            Allows localities to provide for the transfer of development rights within their locality.

SB 374            Provides for mandatory clustering provisions in local zoning ordinances.

SB 409            Authorizes the Virginia Land Conservation Foundation to award moneys from the Virginia Land Conservation Fund for purchase of development rights programs.

SB 459            Expands provisions concerning public disclosures by board of supervisors members.

HB 575            Entitles a locality or a redevelopment authority to the sales tax revenues generated by a mixed-use development that incorporates residential units, provided that at least 20% of the residential units are for affordable housing.

SB 708            Framework for the Senate’s transportation funding proposal.

SB 709            Provides for a regional workforce training board to identify related policies for community colleges and school divisions, and designates the community college system to coordinate the delivery of regional workforce training.

            Here’s an update on bills requested by PDC localities:

HB 333—VRS to report on assumptions and long-term rates (Albemarle) (in House Appropriations)

HB 779— transient occupancy tax revenues (Nelson) (in House Finance)

HB 998—Charlottesville charter bill (in House Counties, Cities and Towns)

HB 999—use of hearing officer in grievance procedure (Albemarle) (in House Counties, Cities and Towns)

SB 142—recordation of deeds (Nelson) (in Senate Courts of Justice)

SB 202—Charlottesville charter bill (passed Senate)

General Assembly Contact Numbers for David Blount, TJPDC Legislative Liaison

804-644-3702 (phone)

804-783-8226 (fax)

979-7310 x350 (Charlottesville voicemail)

(Richmond email)