Legislative Newsletter - January 11, 2008

Number 1

Calendar for 2008 General Assembly Session

January 17       Deadline for submission of budget amendments in House and Senate

January 18       All bills and resolutions to be submitted

February 12     “Crossover” day of bills

OVERVIEW

            Legislators have begun the 60-day session of the 2008 General Assembly, facing a workload that includes crafting a two-year state budget and considering thousands of bills. As of this writing, legislators had filed just over 2,400 bills and resolutions, with the final filing deadline set for next Friday. In addition, lawmakers likely will submit hundreds of budget amendments requesting millions of dollars to fund their priorities.

Governor Kaine delivered his State of the Commonwealth speech Wednesday night and addressed a number of topics that were part of his legislative packet or introduced budget. The governor also singled out the Comprehensive Services Act, the top priority in the TJPD Legislative Program, by stating,

“The way we provide services to young people through the Comprehensive Services Act is in need of significant reform.  If we make necessary changes so that more of our young receive services in community-based or foster care settings, rather than relying on expensive congregate care facilities, we will help these children have a greater chance at life success.”  

The governor’s introduced budget did not alter the amounts or manner of funding for CSA administrative costs, which are stressed in the TJPD position. We are having budget amendments submitted to try to address these two issues. Several of our legislators have introduced identical resolutions to direct the Office of Comprehensive Services to revise or replace the service fee directory that deals with information about residential services. These are HJR 44, HJR 46 and SJR 17. We’ll also be closely watching a package of bills recommended by the CSA study committee that met this past year.

In his speech, the governor also defended his budget’s revenue projections, which proposed growth of 6.6% in FY10, a figure labeled overly optimistic by some legislative budget writers. He stressed the importance of enacting reforms to the state’s mental health system in the wake of last April’s massacre at Virginia Tech, and urged lawmakers to repeal the abusive driver fees approved as part of the 2007 transportation package, saying they” flunked with voters.”

KEY LEGISLATION

            Of utmost concern, though not yet introduced, legislation is anticipated that would eliminate the current cash proffer system and expand the road impact fee authority adopted in 2007 to cover school and public safety buildings (but not add additional eligible localities). Unfortunately, the planning and capital improvement assessment requirements of the impact law would remain unchanged. The new impact fees would apply to residential and commercial development, and by-right zoning, be targeted for facilities “necessitated by and attributable to” new subdivisions, new site plans or the by-right development, but subject to an annually adjustable cap. Finally, the proposal is expected to require local adoption of increase in the grantors tax, perhaps up to 30 cents/$100, on the sale of both existing and new residential and commercial properties. The General Assembly in the past two years has expanded cash proffer authority to include more eligible localities and allow more flexibility in the program…..this legislation would reverse that direction. It would also undo the hard work that several TJPD localities have put into examining cash proffers in recent months. Over the past 16 months, three of our localities have adopted cash proffer policies and a fourth is researching development of such a policy.

            Numerous bills have been submitted to address the Payday Loan Act (the TJPD Legislative Program includes support for a 36% loan cap). Several lawmakers have introduced “homestead” exemption legislation. A Constitutional amendment was approved last year to authorize the General Assembly to enact legislation to allow localities, by ordinance, to exempt or defer from real property taxes up to 20% of the annual value of residential or farm property that is the owner/occupant's primary dwelling and lived in continuously. Constitutional amendments must be approved twice, with an intervening election (the TJPD Legislative Program support a local option homestead exemption). There also are numerous bills to change provisions concerning smoking in restaurants and other public places (the TJPD Legislative Program supports increased local authority to regulate smoking in public places). There are the usual bills that would dictate local tax policy by limiting local real estate tax rates and several others that attempt to weaken the prohibition on public sector employee collective bargaining.

Following are just some of the bills of particular interest and/or concern to local governments in our region that have been submitted and reviewed so far; your staffs are being alerted to additional bills of interest in your locality. Please note that you can be linked to the summary and text of the bills listed below by using Ctrl + Click. Additional bills will be highlighted in the next newsletter:

HB 71             Allows for assessment of impact fees (more flexible provisions) on residential development for various capital improvement projects (also HB 72 and SB 185). Meanwhile, HB 635 provides roads and school facility impact fee authority to all localities.

HB 111           Revises current highway revenue sharing provisions to give first priority to locally-administered projects, second priority when more local funds are committed than state funds requested, and third priority to projects that are accelerated in the state six year or local capital plan (also SB 99).

HB 124           Broadens the exemptions from the local machinery and tools tax without providing replacement revenues.

HB 147           Requires the Statewide Transportation Plan to include regional goals and performance measures for each construction district.

HB 208           Allows provisions in subdivision ordinances for plat or site plan approvals when existing schools, roads, public safety and sewer or water facilities are inadequate to support the proposed development (adequate public facilities).

HB 215           Provides for differential tax rates on classes of local real property (also HB 699).

HB 239           Provides that buildings under LEED, the EarthCraft House or Energy Star programs may be classified as a separate class of real property for tax purposes (also SB 174).

HB 371           Requires a locality to pay attorney fees if certain prohibited actions regarding the regulation of firearms are taken.

HB 387           Expands the definition of "public use" for purposes of determining whether a locality is authorized to acquire property to include any other use reasonably determined by the locality to be in the public interest.

HB 389           Requires CTB, in determining the amount of funds that are reasonable and necessary for maintaining the state’s roads, to utilize the estimated budget required to meet performance standards for asset management.

HB 463           Adds to existing provisions dealing with licensed farm wineries a list of 25 "usual and customary activities" to be permitted by right at such wineries.

HB 503           Requires case management for residential care under CSA to include goals for residential care treatment, a provision for monitoring and reviewing plans and evaluating progress toward goals, and a plan for returning the youth to his home or community.

HB 541           Increases from two to three years the time period within which any prosecution for violation of the Building Code shall be commenced.

HB 602           Places the “burden of proof “in real property assessment appeals on the local assessing official when any assessment is more than 20% above the previous assessment.

HB 617           Creates a dedicated source of revenue (recordation taxes) for the Virginia Housing Trust Fund for affordable housing.

HB 676           Establishes a Commission on Climate Change in the executive branch (has also been established by Executive Order; Harrison Rue is a member). HB 796 would establish a similar legislative commission.

HB 726           Allows localities with cash proffer authority to accept cash proffers for the purchase of development rights to preserve open space (also HB 954).

HB 793           Would require the Secretary of Natural Resources to develop a plan for attaining a 30% reduction of the 2005 greenhouse gas emissions level by 2025 and an 80% reduction by 2050.

HB 848           Directs the Office of Farmland Preservation to develop model policies and practices to guide establishment a local lease of development rights program.

HB 854           Allows local public bodies to meet electronically to address an emergency when under a Governor-declared state of emergency (also SB 131).

HB 921           Increases state funding for certain local and regional jail construction.

HB 922           Increases the “$4-for-life” fee by 25 cents, with the additional revenues targeted for emergency medical services personnel training.

SB 49              Provides that zoning ordinances and districts give reasonable consideration to protecting land, water, and air from harmful discharges, emissions, and other releases (also SB 50).

SB 56              Authorizes the Virginia Resources Authority to finance the construction of local government buildings.

SB 64              Adds crisis stabilization, outpatient, respite, in-home, and residential and housing services to the list of core services required to be provided by CSBs.

SB 121            Establishes the TransDominion Express Commission.

SB 159            Requires the number of full-time deputies appointed by the sheriff of a county without a police force to be not less than 10 deputies.

SB 168            Provides an income tax credit for volunteer firefighters and EMS personnel.

SB 249            Requires foster care plans for children 14 and older include an independent living services plan.

SB 300            Allows localities to prohibit dangerous weapons on locality-owned property.

SB 305            Increases the health insurance credit for retired Constitutional officers and their employees from $1.50 per month to $4 per month. These costs are paid by the state.

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)