Legislative Newsletter - October 30, 2006

Number 18

Local Land Use Practices Detailed for Committee

The House Counties, Cities and Towns Committee received a primer last week on local land use authority and policies and how local governments utilize them. Staff provided members of the committee with a review of the Constitutional provisions concerning local government formation and authorities, as found in Article VII. Planning authority also was reviewed, including details about the local comprehensive plan and subdivision ordinances, which drew many questions from legislators on the panel. Also explained were details about federal, state and local transportation funding and transportation/land use planning linkages. The worksession was planned back in September after several transportation/land use planning initiatives were tabled during the special transportation session. A special subcommittee to examine several of those bills will be meeting next week. Specifically, those bills would allow counties to create transportation service districts and assume responsibility for maintaining all secondary roads (HB 5093), and would require the comprehensive plan to include at least one proposed urban development area to satisfy 10 years of projected residential growth (HB 5094).

Commission Mulls Statewide Housing Policy

The Virginia Housing Commission has been laying groundwork for several years toward development of a statewide housing policy. At a meeting this month, the Commission received several reports on creating such a policy. The Virginia Housing Development Authority (VHDA) and the Department of Housing and Community Development (DHCD) have led the work to frame issues for the policy’s creation, utilizing an advisory team of interested statewide organizations (including local governments). Agency officials presented “guiding principles” for a state housing policy, as well as a document that parallels other state policy and planning efforts that may impact housing. This included the likes of work by the Council on Virginia’s Future, the recently proposed Economic Strategic Plan and several urban policy efforts, including the recent creation of an Urban Policy Task Force in the executive branch.

Also presented was a summary of key issues within five policy areas. One of those areas is residential land use and development, which received most of the discussion in meetings of the advisory group. The report listed specific problems in both urban and growing metropolitan areas, including lack of affordable housing options and land use regulations that foster low-density development. At the same time, presenters noted a lack of incentives for regional solutions and a lack of consensus among advisory team members on how to allocate costs associated with growth.

More information on this issue can be found at the Housing Commission’s website at http://dls.state.va.us/GROUPS/HousingCommission/meetings/2006meetings/2006meetings.htm . The Commission will meet again in late November to further discuss the reports it received.

First Quarter State Revenue

First quarter (July-September) figures released the middle of the month show state revenue collections exceeding projections. Through the first quarter of the current fiscal year, revenue growth has been 7.6%, ahead of the annual forecast of 4.2% growth. In September alone, state tax collections jumped 6.3% over the same month a year ago. The latest revenue report also states that most economic indicators are suggesting that the national economy is slowing. The governor’s Advisory Board of Economists met this month to assess the outlook for the state economy. Governor Kaine will release an updated revenue forecast when he submits his proposed two-year budget to the legislature December 15.

Machinery and Tools Tax Group Makes Proposal

During the 2006 regular session, the legislature approved HB 1290 and SB 260, which added a definition of “idle” machinery and tools as that which has been idle for three months with a reasonable prospect of remaining that way for the next year. Under the bills, localities would be unable to tax this idle equipment. Governor Kaine vetoed the measures, citing the complexity of the issue and the revenue impact on localities. In his veto message he pledged to convene a working group on the matter (as had been envisioned in the legislation). The group, headed by executive branch officials, has been meeting, and recently produced a draft proposal that defines idleness as nine months, and includes a requirement that the assessing official "consider" bona fide third party appraisals presented by the taxpayer in assessing machinery and tools.

Also, a Joint Legislative Audit and Review Committee (JLARC) report from earlier this month noted that Virginia’s economic and workplace regulations do not appear to add substantial costs and are similar to other states. It also noted that the M&T tax was the most widely cited regulatory concern found in its survey of manufactures, yet only a handful of localities rely heavily on the tax, and a majority of cities and counties have a lower M&T tax rate than for general property. JLARC was directed in 2005 to study the burden of regulatory compliance on Virginia’s manufacturing sector.

FOIA Council to Consider Changes

The Virginia Freedom of Information Advisory (FOIA) Council expects to vote in mid-December on a number of changes being considered in the law’s provisions governing open meetings. One is a possible change in the definition of a public body to allow certain regional entities to hold electronic meetings. A subcommittee meets again next week to fine-tune its recommendation that regional public bodies which include four or more cities/counties and/or whose territory covers 100 miles in length be allowed to hold such meetings in a manner now allowed for state public bodies (that is, that a quorum of the body must be physically assembled at one location, with additional members allowed to participate from a remote site). That subgroup also suggests decreasing the required notice of any electronic meeting held from seven to three working days in advance of the scheduled meeting date, and to allow electronic participation in a meeting by a member of any public body on an emergency basis (limited to a few times/year), without providing remote access to the public, if the public body is properly assembled and agrees to such participation.

**Thanks to those of you who attended and participated in the annual legislative luncheon today!

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)