Legislative Newsletter - February 1, 2006

Number 3

Calendar for 2006 General Assembly Session

February 14 - "Crossover"day-last day for house of origin to act on bills

February 19  - House and Senate budgets released

MONEY MATTERS

Budget amendments submitted by legislators were made available last week. In all legislators submitted more than 2,000 funding requests. Governor Kaine submitted numerous amendments as well. Among the governor’s proposals is one to increase teacher salaries by an additional 1% on top of the 3% payraise included in the introduced budget, at a two-year state cost of $39.5 million. Another would provide $3.46 million in general funds to the HB 599 program to provide a hold harmless for localities due to an update in the funding formula. In addition, the amendment directs the Department of Criminal Justice Services to conduct a study of the program and determine if the formula needs to be revised on policy grounds.

Legislators submitted many amendments of interest to local governments. As noted above, House and Senate versions of the next biennial budget will be released in several weeks. The following budget amendments of interest were submitted by TJPD legislators:

• Several amendments provide state funding and/or language provisions for expanding, or studying the availability and expansion of, the broadband network along the Rt. 29 corridor and in parts of the Shenandoah Valley.
• An additional $3 million each year to the railway preservation fund managed by VDOT.
• $200,000 each year for the Wellness Passport Program in Nelson.
• $50,000 in FY07 for the Fluvanna County Public Library.
• $100,000 in FY07 for the Town of Louisa and the Louisa Downtown Development Corp. to restore the historic Louisa County High School.
• $14.6 million each year to increase the auxiliary grant program.
• An additional $50,000 each year for Charlottesville Area Dental Access clinic.
• $150,000 each year for the Lewis and Clark Exploratory Center.
• $8 million each year to assist localities in the conversion of voting equipment to accommodate voter-verified paper trails.
• $15 million each year for the state’s matching share for local purchase of development rights programs.
• $122,000 each year for Volunteer Firefighters and Emergency Rescue Workers Service Award Program (VOLSAP).
• $5.8 million each year to expand available service under the Healthy Families program.
• $2 million in FY07 for land use and transportation planning training for VDOT and PDC’s.

TRANSPORTATION

Governor Kaine also has submitted his legislative package for transportation. His bills include those that provide the legislative framework for his funding package, and those to 1) require traffic impact statements in certain situations and 2) allow localities to deny rezoning requests if transportation facilities are inadequate.

Senate START bills also propose legislative direction for its funding proposals. That task force also proposes to require certain fast-growing localities to implement clustering in their zoning ordinances, to be applicable to a certain percentage of unimproved, residential and agriculturally zoned land. Another measure would require localities to coordinate many land use actions with VDOT by submitting plans to the agency for review and comment on road impacts. Both these bills will be heard in the Senate Local Government Committee next Tuesday. Finally, the Senate has approved a proposal, SB 373, endorsed by both the Governor and START, which allows localities to establish transfer of development rights programs.

On the House side, bills would 1) increase and make permanent the expanded local revenue sharing programs to include cities and towns; 2) require a traffic impact statement for every Comp Plan amendment, rezoning request, and new subdivision plat; 3) require comprehensive plans to include an official map showing road and transportation improvements, including cost estimates of current and future transportation needs in the locality and planning district; and 4) require cost estimates of road improvement components of the local Capital Improvement Program.

LEGISLATION

House and Senate committees are making their way through heavy dockets of bills of interest to local governments. With the February 14 “crossover” day of bills looming, there remains much work to be done in committee. In action from this past week, the House unanimously approved a bill that would expand authorization for impact fees to Stafford and Fauquier Counties. This is the first addition of localities to this section of the Code since the 2000 session, when Stafford was given that authority. The House also passed a measure that requires preliminary plats to be submitted to VDOT for review within 10 business days of receipt by the locality.

The House also handily approved HB 568, which revises the taxation of communications services by applying a statewide, 5% sales tax to retail communication and video services, while eliminating several current levies.  A "911 Tax" of 75 cents would apply to each local landline and each wireless number. If ultimately approved, this measure would take effect January 1, 2007. Also rather easily, delegates approved HB 1052, which requires a sunset date on all state and local bills that add new taxes or increase tax rates.

Awaiting approval on the House floor is HB 1435, which would allow on farm wineries, without being subject to local land use regulation, any activities that promote Virginia wine, even if the activity is inconsistent with an agricultural zone. A floor substitute is being prepared that may somewhat lessen the impact of this bill on local governments.

A substitute version of HB 704 would wipe out much of the existing authority that counties have to regulate hunting and the discharge of firearms. A version of the bill considered last week would have given such regulatory authority to the Department of Game and Inland Fisheries, but a new substitute is expected to be considered when the bill is discussed again in subcommittee on Thursday night. The components of a companion bill, HB 705, which is expected to be withdrawn, are expected show up as part of this new substitute.

A fight is brewing between the House and Senate over the existing land preservation tax credit program. The Senate wants to significantly reign in the amount of credit allowed, thus lessening the amount of state revenue lost to such credits.

Finally, it appears that a number of issues related to the Comprehensive Services Act could be rolled into a study, HJR 60, to be conducted by the Joint Legislative Audit and Review Commission. This would include the provisions of HB 427, which would require the Office of Comprehensive Services to negotiate statewide or regional contracts for residential treatment services paid from state pool funds.

STUDY RESOLUTIONS

Here is a listing of House and Senate study resolutions of interest to local governments:

HJR 53            Joint subcommittee to study if localities should have option to impose a local income tax in lieu of all other current local tax sources (see also SJR 71).

HJR 74            JLARC to study the functions and operations of the commissioners of revenue, treasurers, and directors of finance.

HJR 76            Joint subcommittee to examine other states’ income tax incentives for recruiting and retaining volunteers firefighters and rescue squad personnel.

HJR 100          JLARC to study the SCC’s analysis for determining the feasibility of undergrounding electric lines (also see SJR 125, SJR 72 and SJR 73)

HJR 101          Agency study of the impact of the land application of biosolids on the quality of the state’s waters.

HJR 116          State Crime Commission to study the need for regulation, training and funding of animal control officers.

HJR 125          Joint subcommittee to review homestead exemptions and other alternatives for real property tax relief.

HJR 128          Agency study of local enabling legislation for providing tax incentives for "green building" construction.

HJR 133          Joint subcommittee to study long-term funding sources for the purchase of development rights efforts.

HJR 167          Joint subcommittee to study Virginia's social services system and develop a plan for reform.

SJR 48             Joint subcommittee to study the administration of the election laws by local electoral boards and registrars.

SJR 60             Joint subcommittee to conduct a two-year study of the role of the state’s role in meeting future transportation needs.

SJR 80             Agency development of a comprehensive energy plan for the state.

SJR 88             Joint subcommittee to study ways to improve the integration of transportation and land use planning.

SJR 96             Joint subcommittee to study the cost effectiveness of the CSA program.

SJR 124           JLARC to study fiscal autonomy for elected school boards.

LOCAL BILLS

Here’s an update on legislation 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) (recommended by House Finance subcommittee)

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

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

SB 142—recordation of deeds (Nelson) (failed 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)