Legislative Newsletter - January 26, 2009

Number 2

Calendar for 2009 General Assembly Session

February 8       House and Senate budgets released

February 10     “Crossover” day of legislation

BUDGET OVERVIEW

      Lawmakers have received news that revenue projections for the first half of the current fiscal year are running slightly ahead of estimates. However, recall that current revenue projections, as established last month, estimate that collections will fall 4.8 percent compared with last fiscal year. Year-to-date total general fund growth is minus 3.5 percent, which is better than the projected annual growth rate of minus 4.8 percent.

      In December, general fund revenues fell 2.6 percent compared to December 2007, despite two additional deposit days. Sales tax collections over the six month period have fallen 5.4 percent, which is behind the annual estimate of a 2.1 percent decline. Historically, about 53 percent of the total general fund is collected in the final six months of the fiscal year. January is another significant month for revenue collections. Lawmakers are expected to receive another revenue report in early February, around the time the House Appropriations and Senate Finance Committees face a deadline to release their version of changes to the current biennial budget. Legislators submitted hundreds of proposals to amend the current two-year state budget by last Wednesday’s deadline, but this represented far fewer requests than in recent years.

LEGISLATION

      When the dust settled after Friday’s filing deadline, legislators had filed more than 2,150 bills and resolutions. All legislation must be considered in its house of origin in the next two weeks leading up to the Tuesday, February 10 “crossover” of bills. This period will be a very busy time for committee and subcommittee action. There are numerous land use bills that will be heard in House and Senate committees during this time. HB 2613, which was submitted on last Friday’s filing deadline, proposes to phase out locality acceptance of cash proffers over five years. Specifically, beginning July 1, 2010, localities would have to reduce the maximum amount of cash proffer to be accepted by 20%, then an additional 20% each year thereafter. Just two years after sweeping changes to public use statutes that restricted local authority, there are several “eminent domain” Constitutional amendments being considered in both the House and Senate. There also are numerous energy-related bills; the ones that are still “in play” for the second half of the session will be discussed then.

      In action from last week, HB 1671, which is a broadly supported bill that shores up derelict building provisions, was approved unanimously by the House Counties, Cities and Towns Committee. The Senate version, SB 1094, is on the docket for discussion tomorrow. The House Committee put off for another week a vote on HB 1788. This bill would restrict localities from 1) prohibiting use of alternative on-site sewage systems that have been approved by the Department of Health (DOH), and 2) requiring maintenance of such systems beyond the manufacturer's recommendations or DOH regulation. In subcommittee, the bill was amended to bar only those local requirements beyond DOH regulations, which don’t exist at this time.

Here are more bills of interest to local governments. Please note that you can click on the bill number in the list below to be linked to the summary and text of the bill.

HB 2387         Requires new or renovated public buildings over 5,000 square feet to meet Greene Globes or LEED standards (also SB 1252)

HB 2425         Allow localities to withdraw from the secondary system of highways

HB 2535         Grants statewide authority for creation of arts and cultural or education districts

HB 2547         Directs that any federal economic stimulus funds coming to Virginia be used exclusively for transportation and education infrastructure improvements, with preference given to Virginia businesses and contractors when awarding contracts

HB 2558         Provides for public notice and hearing if a biosolids permit is amended to increase the acreage by 50% or more

HB 2563         Allows localities to withhold acceptance of plat approvals if an applicant has other projects in the locality with streets not completed or on track for completion as required by approved plans

HB 2591         Requires DEQ to collect biosolids samples during unannounced inspections of land on which biosolids are being applied

HB 2600         Requires the state to develop plan to assist the transportation disadvantaged

HB 2628         Prohibits a local public body from making purchases with another public body's contract until determining that such cooperative procurement is fiscally advantageous and increases efficiency or reduces administrative expenses

HB 2662         Allows community development authorities to request additional taxes from the locality related to the transient occupancy tax and the food and beverage tax

HB 2664         Directs development of local corridor access management plans along Route 29

SB 1292          Allows local governments, with the Department of Taxation's assistance, to collect past due local taxes from federal income tax returns

SB 1319          Clarifies that minutes of public meetings must be in writing

SB 1335          Allows localities to waive public hearing requirements when considering developer requests to amend certain existing proffer agreements

SB 1386          Adjusts state reimbursement for capital costs of local and regional jail construction to a maximum of 35%. Currently, local jails are reimbursed at 25% and regional jails at 50%

SB 1423          Requires localities, in their subdivision ordinances, to provide a checklist to potential developers

SB 1487          Requires urban development areas to provide a mix of residential housing types to meet projected family income distributions of future residential growth

SB 1524          Broadens the zoning administrator's authority to determine vested rights in certain circumstances

SB 1533          Extends the expiration of special use permits that were valid and outstanding as of January 1, 2009, for a period of five years from their current expiration date

      Here’s an update on bills of specific local interest:

→Lower speed limit on unpaved roads—HB 1837 (Albemarle Co.) (reported by House Transportation Committee)

→Regional Transit Authority enabling legislation—HB 2158 (in House Counties, Cities and Towns Committee)

→Referendum on funding for transit and transportation—HB 2161 (in House Finance Committee)

→Certain licensed distillers as ABC agents (Eades Distillery-Nelson County)—HB 2390 (in House General Laws Committee) and SB 1213 (on Senate floor)

→Rivanna Scenic River designation—SB 957 (approved by Senate)

→Increase in transient occupancy tax—SB 1025 (Greene Co.) (approved by Senate)

→Clean energy financing authorization— SB 1212 (Charlottesville and Albemarle) (in Senate Local Government Committee)

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)