Legislative Newsletter - January 21, 2008

Number 2

Calendar for 2008 General Assembly Session

January 23       House and Senate member budget amendment requests released

February 12     “Crossover”day—last day for house of origin to act on bills

February 17     House and Senate budgets released

OVERVIEW

State lawmakers will focus much of their attention this session on crafting the next biennial budget, and they’ll tackle that challenge under a cloud of continuing economic woes at both the national and state levels. Last week, Kaine administration officials delivered more sobering news: a December state revenue report that showed declines in three substantial sources of tax collections. Nonwithholding income tax, corporate taxes and recordation taxes all dropped by more than 20% below the December 2006 collection level. Income tax withholding, however, was up just over eight percent. Still to be calculated are sales tax figures from the holiday shopping season, which will be reflected in the report on January revenues. That report will be presented to legislators in mid-February, at which time there could be a reforecast of growth for all state revenues. If the revenue shortfall appears to be worsening, the state and localities could be forced to weather more funding reductions.

            House and Senate leaders have taken an unprecedented step to appoint members of the budget conference committee weeks before differences in their chamber’s version of the budget are known. House Speaker William Howell and Senate Finance Committee Chairman Charles Colgan say this will give budget writers more time to prepare for their discussions and negotiations, and to begin to iron out differences. The House budget conferees are Delegates Putney, Hamilton, Cox, Joannou, Sherwood and Hogan, while the Senate conferees are Senators Colgan, Houck, Howell, Wampler and Stosch. Budget amendments submitted by legislators by last Thursday’s deadline are expected to be available on Wednesday.

            On Friday, a news conference was held to unveil legislation that would eliminate cash proffer authority while expanding impact fee authority for localities. The state homebuilders group is advancing the bill, sponsored by Senator John Watkins, who said at a Friday press conference that the legislation would “broaden the base of those that make growth-related contributions to the cost of public infrastructure.” Under the proposed legislation, SB 768, cash proffer authority on rezonings would be eliminated. For future development, the same high growth localities granted impact fee authority in 2007 could impose an impact fee on residential properties (both rezonings and by right developments) for schools, roads and public safety buildings, and on commercial developments (except for schools). If the locality enacts an impact fee, it also must enact a grantor’s tax at a rate of 20 cents per $100 value of the sale, which, along with the impact fees, would be used for infrastructure in the impact fee service areas created by the locality. The bill has caps on the amount of the impact fees, the highest being $5,000 per single family dwelling, and separate square footage caps for commercial and industrial properties. The bill allows the negotiation of on-site non-cash proffers in the rezoning negotiation process.  However, it ends the authority to negotiate off-site non-cash proffers for residential developments, but does allow that for commercial developments. The bill sets January 1, 2009 as the transition date from cash proffers to impact fees and the new grantor’s tax. 

LEGISLATION

            When the dust settled after last Friday’s filing deadline, legislators had submitted nearly 2,800 bills and resolutions for consideration. All legislation must be acted on in its house of introduction by February 12. Here are more to add to our growing list:

HB 954           Allows use of cash proffers for the purchase of development rights to preserve farmland or open space.

HB958            Authorizes localities to require all non-owner occupied residential dwellings to be registered on an annual basis (also SB 455).

HB 991           Permits the severance and transfer of development rights from a sending property without requiring those rights to be immediately affixed to a receiving property.

HB 1082         Changes the name of the Virginia Housing Partnership Revolving Trust Fund to the Virginia Housing Trust Fund and directs a portion of state recordation taxes to it for local housing initiatives (also SB 661).

HB 1105         Increases local government ability to limit or remove nonconforming billboards.

HB 1115         Increases the annual amount a locality pays to the State Forester for forest fire protection, detection, prevention and suppression, from five to nine cents per acre.

HB 1270         Sets out the responsibilities of pedestrians and drivers at marked and unmarked crosswalks, including for motorists to stop for pedestrians in crosswalks (see also HB 1478 and SB 644).

HB 1286         Eliminates the three-tier aspect of the revenue-sharing program, allows localities to contribute up to 90% of their share in the form of proffers, and provides that 90% of project funding will be from VDOT and 10% from the locality.

HB 1332         Vests the authority to issue and enforce permits (including general permits), licenses, and certificates related to air and water pollution with the Director of the Department of Environmental Quality (also SB 423).

HB 1335         Allocates 10% of the revenue generated by a one percent sales and use tax, not to exceed $100 million, to fund agricultural best management practices (see also SB 470.

HB 1353         Prohibits a locality from restricting the manufacture, transportation, storage, sale or use of any permissible firework.

HB 1406         Increases from 1,000 to 3,000 vehicles per day the maximum average daily traffic volume for roads to be eligible to participate in the rural rustic road program.

HB 1433         Provides a sales and use tax exemption for telecommunication companies.

HB 1453         Requires certain localities levying additional transient occupancy taxes to consult with the local tourism agency about spending on tourism initiatives.

HB 1501         Creates a task force, appointed by the Secretary of Public Safety, to develop criteria for the training and certification of firefighters.

HB 1548         Prohibits publicly owned landfills from accepting three or more tons of construction and demolition debris per hauler trip, if there are recycling facilities or a construction and demolition landfill available in the area.

HB 1565         Authorizes regional transportation districts with local option fuel taxes.

HB 1571         Repeals 2007 impact fee provisions.

SB 400            Makes last year’s requirement that deputy sheriffs be provided LEOs retirement benefits applicable to deputy sheriffs who retired prior to July 1, 2008, under a disability retirement.

SB 477            Provides for a lower local match for state purchase of development rights funding for localities with significant value of property in land use value taxation (see also HB 727).

SB 525            Establishes an executive branch commission to assess the risks and benefits of developing uranium resources in the state.

SB 533            Expands requirements for disclosure of real estate interests under the Conflict of Interests Act.

SB 641            Provides a land preservation tax credit of 60% of market value for donations of land for a public park.

SB 656            Extends the current annexation moratorium to 2018 (see also SB 742).

SB 658            Requires the State Executive Council to develop, and localities to implement, a program of case management for residential care to include a provision for residential care plans.

SB 713            Increases the gasoline tax rate by five cents per gallon in increments of one penny per gallon in each of the next five fiscal years, to be used for road maintenance.

            Here’s a listing of bills and budget amendments requested by the TJPDC:

            Three identical resolutions were submitted at the request of the TJPDC that call for the Office of Comprehensive Services to develop options for revising or replacing the service fee directory. The bills are HJR 44, introduced by Delegate Toscano, HJR 46, introduced by Delegate Landes, and SJR 17 introduced by Senator Deeds. These resolutions all are expected to be heard in subcommittee next week.

            In addition, the TJPDC requested budget amendments to address administrative costs of CSA. Amendments to provide $2.5 million (statewide) for localities for CSA administrative costs were submitted by Delegate Landes and Senator Hanger. Language amendments to direct the Secretary of Health and Human Resources to develop options for revising the funding formula for CSA administrative costs were submitted by Delegate Landes and Senator Houck.

            Finally, HB 883 and SB 268 were introduced at the request of Charlottesville to address several affordable housing provisions.

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)