Legislative Newsletter - February 10, 2006

Number 4

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

Differing proposals for funding state transportation improvements are expected to dominate proposed House and Senate changes to the introduced budget when released on February 19. Governor Kaine and some Senate leaders (see also SB 708 below) have had their long-term plans for financing transportation needs on the table for several weeks. Those plans utilize primarily non-general fund revenue sources. House leaders, who previously announced VDOT reform and transportation/land use initiatives, now have proposed a funding package that would provide about $1.2 billion for transportation over the biennium (see details below). In addition, it is likely that the proposed budgets will be bolstered by a revised state revenue forecast which is due out over the weekend.

TRANSPORTATION

Governor Kaine is taking steps to rally support for his transportation package, first, at a rally outside the General Assembly Building on Tuesday and then in a speech to a VML/VACo audience on Thursday. He also plans to go back out on the road starting next week for a series of town hall meetings to discuss transportation issues. However, on Monday, the House Finance Committee defeated two measures introduced at the request of the governor to provide the framework for his transportation proposal. HB 1611 would have increased the motor vehicle sales and use tax from 3% to 5% and dedicated the revenue generated (about $800 million over the next two years) for transportation. HB 1613 would have increased the motor vehicle insurance license tax from 2 ¼% to 4 ½%, with the money generated (more than a half billion over the next biennium) to be dedicated to transportation.

A host of transportation funding bills were discussed by members of the Senate Finance Committee at its Wednesday and Thursday meetings. A lot of the time was spent on SB 708, which proposes the funding package of the Senate’s Statewide Transportation Analysis and Recommendation Task Force (START). Over the next biennium, it would generate an estimated $1.2 billion for two new funds (urban congestion and rural transportation), highway maintenance, transit and rail, by dedicating insurance premium taxes to transportation, increasing titling and vehicle registration fees and removing tax exemptions on auto repair services and gasoline sales.

The House funding package released Friday provides more than $2 billion in additional revenues for transportation over the next four years. It utilizes anticipated surplus revenues for one-time projects ($552 million in FY07) and for debt service, dedicates 1/3 of the insurance premium tax revenues to transportation, dedicates a portion of recordation taxes to needs in Northern Virginia and Hampton Roads, and enacts new civil penalties for abusive drivers. The general funds are targeted for priority projects along interstate highways and some projects already identified by the Commonwealth Transportation Board and regional plans. The local revenue sharing and transit capital programs are expanded slightly, a local congestion relief fund is created and new revolving bond funds are established for Northern Virginia and Hampton Roads. Nearly $90 million in additional dollars would be funneled to highway maintenance.

LEGISLATION

Bills of interest that are winding their way through the legislative process and that will continue to be debated in the second half of the session:

Eminent Domain: HB 94 initially was reported unanimously to the full House of Delegates, but when some delegates on the House Courts of Justice Committee expressed concern about the lack of discussion, the bill was held in the committee and is being considered again at this writing. The bill, the product of discussions last fall by the Housing Commission, has been supported by most local governments and the development community, as it largely preserves existing condemnation authorities. Changes to the bill likely will be attempted once the bill reaches the floor.  A nearly identical measure, SB 394, is the likely Senate version that will move forward; eminent domain bills submitted in the Senate will be heard Monday in the Courts of Justice Committee. 

Land Use: The Senate Local Government Committee unanimously approved a pair of bills that have roots in the START discussions. SB 374 requires clustering provisions in local zoning/subdivision ordinances in localities that experienced 10% population growth between 1990 and 2000. The cluster ordinance must apply to at least 40% of unimproved land zoned residential or agricultural. Meanwhile, SB 699, a part of the Administration’s package, links state transportation and local land use planning by requiring comprehensive plans, rezonings and subdivision plats to be submitted to VDOT for review and comment on transportation impacts. Localities still would make decisions on such applications as they do now. VDOT will develop regulations for when such a traffic impact analysis will be required. Both of these bills await a final floor vote on Monday. The House version of this measure, HB 1513, was approved by the House Counties, Cities and Towns Committee on Friday.           

House Counties, Cities and Town also advanced a substitute version of HB 1506, which allows additional counties to utilize the cash proffer system and that those funds can be used for the local share in transportation revenue sharing projects, as well as for off-site improvements. Two other measures were approved: HB 1521, which requires the comprehensive plan to include a map with estimated costs of planned road and transportation improvements, and HB 1528, which requires CIP’s to include road and transportation improvements that the locality chooses to include in its capital improvement plan and that are part of the comprehensive plan.

The House has approved HB 1435 on a 75-25 vote. This measure would allow on farm wineries, without being subject to local land use regulation, activities that promote Virginia wine, even if the activity is inconsistent with an agricultural zone. This means the likes of loud music, large festivals and other activities would be allowed without having to come before the locality for review.

Weapons: A substitute version of HB 704 drastically alters the existing authority that counties have to regulate hunting and the discharge of firearms. The bill was approved overwhelmingly by the House Militia and Police Committee Friday morning. The bill stipulates that regulations governing shooting can be no stricter than those that govern hunting. Thus, this may force growing localities to further regulate hunting. The bill’s patron already has indicated he wants to come back next year with a bill to eliminate local hunting and discharge ordinances in favor of statewide regulation.

Retirement: A substitute version proposed for SB 393 would impact retirement benefits for local law enforcement officers in some localities. It would extend Law Enforcement Officers retirement benefits (LEOs) to deputy sheriffs where coverage is not currently extended by the locality. The bill also raises the retirement multiplier from 1.7% to 2.2% of average final compensation to determine retirement benefits for sheriffs, and would allow localities that already extend LEOs coverage to deputies and other police and firefighters to make the adjustment for those employees, at their own expense. The bill increases fines for various driving offenses to raise approximately $18 million for the costs of this initiative.

Environment: Both the House and Senate have approved HB 647, which provides 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. It also stipulates that not meeting the required recycling rate cannot be the sole reason for denying a waste permit.

The House Agriculture Committee has approved a substitute version of HB 1150 that calls on state environmental officials to develop a Chesapeake Bay Cleanup Strategic Plan, to include funding and apportioning mechanisms. SB 626, which would have dedicated a new state lodging fee and some recordation tax monies to the Water Quality Improvement Fund, was carried over for the year.

Bills dealing with biosolids have met a mixed fate. HB 688, which would have prohibited the application of biosolids unless it was applied in the same locality in which was generated, was defeated. HB 1134, which directs the Board of Health to establish a fee schedule for biosolids permit holders, was approved by the House Agriculture Committee and awaits action on the House floor.

Other: HB 340 and SB 200 are similar, but not identical bills, that revise the state’s dog laws. They have been approved by their respective chamber. The bills require local dangerous/vicious dog ordinances and enhance penalties for an owner of a dog causing serious injury or death.

HB 532 was unanimously approved by the House. This bill provides a sales tax exemption for certain school supplies, clothing and footwear, and computers purchased during a three-day period each year beginning on the first Friday in August. A similar measure, SB 571 is pending in the Senate Finance Committee.

The House Transportation Committee has approved HB 366, which revises various laws concerning mopeds and related vehicles. More than a dozen moped bills were introduced during the 2005 session, prompting the House Transportation Committee to establish a special subcommittee to review the bills last year. HB 366 is the result of this group’s work and it incorporates many of the recommendations proposed by the City of Charlottesville. A similar, though not identical bill, SB 712, already has passed the Senate.

HB 32 exempts recreation programs attended by children over the age of five from licensure requirements, but requires safety and supervisory standards for such programs to be established by local governments. The bill has passed the House.

HB 400, as approved by the House, allows the Governor’s Governor's Development Opportunity Fund and the Virginia Economic Development Partnership to provide for broadband or high-speed internet access or expansion in rural areas.    

LOCAL BILLS

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

HB 333—VRS to report on assumptions and long-term rates (Albemarle) (no action in House Appropriations)

HB 779— transient occupancy tax revenue authority (Nelson) (passed House)

HB 998—Charlottesville charter bill (passed House)

HB 999—use of hearing officer in grievance procedure (Albemarle) (passed House)

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