Legislative Newsletter - April 13, 2006

Number 9

BUDGET TALKS

            More than two weeks into a special legislative session, the House and Senate remain deadlocked over resolving the budget and transportation funding impasse. Both bodies met in full sessions yesterday (delegates also met Tuesday evening).

The full House on Wednesday approved, on a 64-29 vote, a two-year budget for the 2006-2008 biennium that essentially is the same as its version of the budget passed in February. The only change was an amendment to set aside in a reserve fund just over $1 billion in general fund dollars to pay for a transportation plan, to be dealt with as a separate item, either during this special session or another one in the fall. Delegate Vince Callahan, the House Appropriations Committee chairman, has said that the House and Senate could agree on a budget, minus transportation, because the two chambers disagree on few other items.  Senators have been cool to that notion, preferring instead to tackle the budget and transportation as one item during the current special session. House staff said that establishing a reserve fund for transportation funding in the budget was modeled after actions taken in the 1998 session, when a similar reserve fund for the personal property tax reimbursement program was created.

            Meanwhile, senators spent much of their time Wednesday considering bills to establish revenue powers for transportation authorities in both Hampton Roads and Northern Virginia. Some senators expressed concern that approving regional measures would lessen the incentive to develop a statewide transportation plan. Senators from the two regions agreed they still want a statewide solution on top of any statewide plan. The bills have been referred to the Transportation subcommittee of the Senate Finance Committee, which will meet again next Tuesday to receive the subcommittee’s recommendation.

            The full House and Senate are scheduled to again meet in special session following next Wednesday’s reconvened session of the 2006 regular legislative session (see below). 

KAINE PROPOSES AMENDMENTS, VETOES

Governor Tim Kaine has proposed to rewrite 130 bills and vetoed another seven bills of the more than 950 pieces of legislation approved by the legislature and sent to him for signing. The General Assembly meets Wednesday, April 19, for its annual reconvened session to consider amendments and vetoes recommended this week by the governor.

            The governor recommended deleting new language in HB 1290 and SB 260 that define idle machinery and tools and exempt it from local taxation. Idle machinery and tools presently is defined from State Tax Department opinions dating back to the 1950’s as equipment that has not be in use for the past 12 months. The bills approved by the legislature say it is equipment not in use for the past three months, provided there is no reasonable prospect it will return to active use within a year. This change could mean a difficult-to-calculate revenue loss for localities. The bills also create a taskforce of stakeholders to examine idle machinery and tools issues in the coming year. If you believe your locality will be adversely affected by these bills, please contact your legislators and urge them to support the governor’s proposed amendments.

            The governor also proposed largely technical changes to three bills (HB 340, HB 1039 and SB 200) dealing with control of dangerous and vicious dogs, including clarifying that local governments can enact ordinances that parallel the state law, but without felony penalties. He proposed a reenactment clause to HB 370, which limits county authority to prohibit carrying a loaded gun on a highway. This means to bill would have to pass again next year to take effect.

            Additionally, amendments are proposed to SB 193 that would provide local governments with more options to fund rail projects. Changes to SB 412 would add additional duties to the Secretary of Transportation’s intermodal office, including to coordinate the accommodation of pedestrian, bicycle and other non-motorized forms of transportation in the six-year and other transportation plans.

            Proposed amendments to the energy plan bill, SB 262, eliminate language that provided for the State Corporation Commission to develop and apply procedures for “scoring” tracts of land to compare suitability for the use of low-emission energy facilities, including wind farms, nuclear plants and liquefied natural gas and solar energy facilities. Finally, a proposed change to SB 374, the clustering bill, would grandfather local ordinances enacted prior to June 1, 2004, rather than January 1 of the same year.

Amendments proposed by the governor are agreed to or rejected by a simple majority of the House and Senate. If amendments are rejected, the bill goes back to the governor for him to sign or veto. However, if amendments are rejected and the bill in its enrolled (as passed by the General Assembly) form is agreed to by a 2/3 vote of both chambers, then the bill becomes law. The legislature can only override a veto with a 2/3 vote of both the House and 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)