Bill would eliminate HB 599 funding to localities

While the House and Senate budget committees are debating the merits of Gov. Tim Kaine's proposed funding allocations to communities with police departments (HB 599), a member of the House Appropriations Committee has introduced legislation to eliminate the entire HB 599 program. VML opposes the bill.

Del. Leo Wardrup (Virginia Beach), who chairs the House Appropriations Transportation Subcommittee (and sits on its Public Safety Subcommittee), has introduced HB 2200 to repeal the HB 599 structure and formula. This bill would redirect the proceeds of this public safety grant program to transportation projects in all localities on a pro rata basis, based on population.

The bill is in the House Appropriations Public Safety Subcommittee.

Local governments that receive HB 599 funding (39 cities, 9 counties and 128 towns) should contact their members of this subcommittee or the members of the House Appropriations Committee to stress opposition to this bill.

Some points to remember:

• The proposed fiscal year 2008 funding level for the HB 599 program is $214.7 million.
  
• Public safety is a basic government function. It's importance to the residents of Virginia continues to grow, not diminish, over time.
  
• While many local governments receiving HB 599 spend considerably more on public safety than they receive from the state, it represents an important funding source for communities large and small, and helps to reduce the pressure on local real estate taxes.
  
• For smaller communities, HB 599 in many instances is what enables them to provide 24-hour police coverage.
  
• Counties with sheriffs' departments receive state assistance to help pay for their law enforcement needs.
  
• HB 599 funding is indeed earmarked for local public safety purposes in the state budget. It has been earmarked since 2004. Some General Assembly members have continued to express comments otherwise; for example, one stated last week in committee his belief that his city used their allocation to buy garbage trucks because it wasn't earmarked.
  

The members of the House Appropriations Public Safety Subcommittee are: Sherwood (R-Winchester); Wardrup (R-Virginia Beach); Reid (R-Henrico); Abbitt (I-Appomattox); Joannou (D-Portsmouth); Ware, O. (D-Roanoke) and A. Howell (D-Norfolk).

Bill would require largest cities to go to referendum to increase meals tax

Please contact your legislators and urge them to oppose HB 2315 (Welch), a bill that would require cities over 100,000 population to go to referendum in order to increase the meals tax. At present, the bill would cover seven cities (Alexandria, Chesapeake, Hampton, Newport News, Norfolk, Richmond and Virginia Beach), with two others likely to grow into the bracket soon (Portsmouth and Roanoke).

This is the type of change that will almost inevitably expand in future years. It makes no sense for only a handful of cities to have this requirement - and this will be the argument in future years about expanding the provisions of the bill. It is hard enough for local officials to raise revenues to provide adequate services, without more restrictions on their limited abilities.

Even if this piece of legislation doesn't affect your locality now, please help to oppose it, because next year it may be another small group of localities added - including you.

The House Finance Committee will hear the bill Monday morning, Jan. 21. It will come with a positive recommendation from a subcommittee. VML and Alexandria opposed the bill in subcommittee. Please contact your member of the House Finance Committee today.

Land use management bills would alter local landscape

An agreement between House and Senate Republicans on transportation, VDOT reforms and land use includes two significant provisions that will affect local governments.

The first is HB 2777 (Athey), which requires growing counties to amend their comprehensive plans to accommodate growth for 20 years into the future with high density residential development, including a minimum of four units per acre or three times the density of the surrounding area. The areas to accommodate growth are to be near existing cities or towns or other developed areas and are to be near existing and planned transportation infrastructure.

The second element will include some kind of impact fee authority for large counties. However, it appears the authority may be so limited as to be only of limited benefit as counties try to find ways to fund the costs related to growth. Both these bills will be a part of a single bill introduced in the House and Senate. The single bill will include the transportation funding introduced at a press conference Thursday. The actual language of the land use pieces of the bill are not available now. We will report on the text of the bill as early as possible.

Eminent domain constitutional amendments to be considered Jan. 24

Four constitutional amendments restricting the use of eminent domain will be heard on Wednesday, Jan. 24, at the 5 p.m. meeting of the House Privileges & Elections Subcommittee # 1. Subcommittee Chair Robert G. Marshall (Prince William) said that he hoped that an amendment restricting eminent domain would be voted out of the subcommittee.

The amendments to be heard on Jan. 24 include:

HJR 579 (Peace), HJR 714 (Rapp), HJR 722 (Joannou), and HJR 723 (Bell).

Subcommittee members include R. Marshall (Prince William), Ingram (Hopewell), Cole (Spotsylvania), Frederick (Prince William), Fralin (Roanoke), O'Bannon (Henrico), Miller, J. H. (Manassas), Phillips (Dickenson), Alexander (Norfolk), Joannou (Portsmouth) and Sickles (Fairfax).

Bills authorizing bonds for water quality introduced

Part of Gov. Tim Kaine's proposal to fund water pollution clean-up in Virginia, HB 1710 (Callahan) and SB 771 (Chichester), authorize the Virginia Public Building Authority to issue $250 million in bonds for grants to local wastewater treatment plants installing biological nutrient removal technologies. Wastewater treatment plants targeted for grants are listed in the legislation. Upgrading these treatment plants is an important part of achieving nutrient reduction goals for the Chesapeake Bay and its tributaries by 2010.

Taking subdivision streets into the state system

The issue of whether the General Assembly will end the policy of accepting subdivision streets in the future is a major issue for counties with a spill-over impact on cities and towns.

For counties, if VDOT stopped accepting subdivision streets, either substantial homeowners associations would have to be established to take them over, or the counties would have to fund the maintenance of the subdivision streets. Some of the legislation filed on this topic provided that the state would pay the counties extra money to pay for the maintenance. The payments are in line with urban lane mile maintenance payments. Since VDOT currently spends a much smaller amount per lane mile, that promise of payment would cost the state much more than the current system.

Further, the cost of subdivision street maintenance to VDOT is only a very small part of its maintenance budget: some $24 million annually out of a $400 million maintenance budget. The spill-over effect for cities and towns is that if the state sends more money to counties for maintenance, and the size of the available funds stays the same, there will be less money to pay cities and towns.

HB 2227 (Wardrup) provides that VDOT will revise its regulations for street design and the criteria for accepting streets into the state system. This bill directly impacts towns under 3,500 population where VDOT currently maintains the streets. If this becomes law, VML expects to participate over the next year in the group that will shape the regulations. The bill was recommended for approval by a subcommittee of the House Transportation Committee.

The subcommittee also discussed that at least two bills of Del. Robert Marshall will be folded into HB 2227. The Marshall bills simply end VDOT's taking over maintenance of new subdivision streets.

In earlier actions, the House and some Senators have indicated that VDOT needs to stop taking in new subdivision streets. The House Republican press release on the transportation agreement included a statement that VDOT would stop taking in new streets.

Extension of annexation moratorium approved by committee

The House Counties, Cities and Towns Committee approved HB 1979 (Lohr) that extends the moratorium on city-initiated annexation to 2020. The current moratorium limit is 2010.

Members of the committee who represent cities noted that the original moratorium was intended to be balanced by payments to cities by the state for law enforcement costs and that the state has failed to meet its promise. The bill was reported with six members voting against it. The bill now will be heard by the full House.

Governor's education budget amendments scrutinized

Gov. Tim Kaine's amendments to increase funding for the algebra readiness program, early reading initiative and pre-kindergarten education ran into some rough questioning from members of the House Appropriations Committee at meetings on Jan. 16 and Jan. 17.

Delegates asked to see data that showed that the programs had a record of success, and questioned whether the existing programs had resulted in any improvement in student performance in algebra and reading. Kaine's budget amendments included an additional $3.9 million in FY08 for additional math instruction for 6th graders who are at risk of failing the Algebra 1 test required under the Standards of Learning. Another budget amendment includes $4.1 million in FY08 to offer additional reading instruction to all 1st and 2nd graders in need of additional instruction to pass the 3rd grade SOL reading test. Currently, funding is available for only half of those students in need of the additional reading help.

Kaine also proposes an additional $4.6 million in FY08 to expand the Virginia Preschool Initiative to include six pilot projects that would encourage public/private participation in preschool services. Among other issues, the delegates expressed concern over the timing of the award of the grants and the long-term effectiveness of pre-kindergarten education.

Delegates also peppered Kent Dickey, budget director for the Department of Education, with questions regarding his presentation on average teacher salaries. Virginia ranked 28 out of the 50 states and the District of Columbia in teacher salaries in FY06, but exceeded the average salary of the states in the Southern Regional Education Board. Teacher salaries lagged the national average by 3.8 percent. Delegates asked for information that would Dickey was asked to gather additional information that would compare factors such as cost of living and total compensation packages for teachers in Virginia and other states.

Subcommittee tables retirement bills

Del. Lacey Putney (Bedford), chairman of the House Appropriations Subcommittee on Compensation and General Government, began the Jan. 18 meeting of the subcommittee by reminding the members that JLARC was conducting a study of compensation and retirement benefits for classified state employees and others, including employees in political subdivisions, covered by the Virginia Retirement System. Putney said that he hoped that the subcommittee will keep in mind that the study is underway, and would exercise restraint in looking at legislation with significant policy or fiscal implications.

With that introduction, the subcommittee then recommended tabling most of the bills before it, including:

HB 1637 (Shuler), HB 1882 (Caputo) and HB 1882 (Ward), increasing the retirement multiplier for teachers.

HB 2718 (Barlow), extending the retirement supplement to the Social Security retirement date.

HB 3009 (Marsden), allowing localities to include juvenile detention officers in the Law Enforcement Officers Retirement System (LEOs).

Numerous bills increasing retirement benefits remain on the docket for House Appropriations and Senate Finance.

In addition, Kaine's budget amendment to provide state funding to help pay the cost of localities to extend LEOs benefits to sheriffs' deputies and regional jail deputies is still before the committees.

Homestead exemption consideration postponed; other amendments recommended to be tabled

The House Privileges & Elections Subcommittee #1 postponed consideration of HJR 624 (Brink), at the request of the Governor's Office. The amendment is Gov. Tim Kaine's proposal to direct the General Assembly to enact legislation allowing localities to exempt from property taxes up to 20 percent of the value of residential or farm property designed for continuous habitation and occupied by the owner.

The subcommittee also recommended tabling several constitutional amendments, including:

HJR 559 (Frederick), capping real property tax assessments and real property taxes.

HJR 610 (Cole), requiring all state and local elections to be held in conformance with federal elections in even numbered years.

HJR 614 (Hargrove), establishing a recall procedure for state officials and authorizing the General Assembly to establish a recall procedure for local officials.

Del. Robert Marshall also asked that the committee table his two amendments (HJR 588 and HJR 590) authorizing localities to use impact fees as he understood that an impact fee would be voted out of the House this year.

Campaign contribution limitations introduced

Local elected officials will want to examine closely HB 3012 (Frederick), a bill that prohibits local elected officials in cities, counties and towns from soliciting or accepting campaign contributions from any person who has a personal interest in a transaction pending before the council or board while the matter is pending, or during 90 days after final action.

The bill also requires officials, before voting on a transaction, to disclose campaign contributions of $500 or more received in the past year from any person having a personal interest in the pending transaction. The bill makes the elected official subject to a civil penalty of the contribution, or $500, whichever is greater, with the penalties to be deposited in the locality's general fund.

The bill is in the House Privileges & Elections Committee, which meets Fridays at 8:30 a.m.

No Child Left Behind waiver bills introduced

SB 1212 (Hanger) and HB 2542 (Landes) direct the state Board of Education to apply for a waiver from the U.S. Department of Education to substitute Virginia's Standards of Learning accountability standards for those imposed by the federal No Child Left Behind Act.

If the waiver is refused, the bill directs the state to withdraw from participation in NCLB and directs the state Attorney General to bring suit against the U.S. Department of Education if the department inappropriately withholds federal funds as the result of the withdrawal.

In presenting his bill at the Jan. 18 meeting of the Senate Education and Health Committee, Hanger said that the federal model in NCLB does not work and that it cost $5 in state money to receive $2 in federal NCLB funds. He said Virginia was aiming for equal opportunities, not equal outcomes. He said that Virginia could be a leader in a nationwide effort toward reformation of the act. Hanger is working on amendments to the bill, which will be heard at the Jan. 25 meeting of the committee. HB 2542 is in the House Education Committee.

Billboard bills passed by for the day

Two bills that would limit a locality's authority and allow billboards to be relocated if a road is widened or land is taken under eminent were not taken up in committee this week, as expected.

HB 2128 (Hugo) and SB 1102 (Williams) were to be taken up in House Transportation and Senate Transportation. It is uncertain when the bills will be heard in committee.

Please continue to contact the members of House and Senate Transportation to voice your opposition to these bills.

Fingerprinting allowed for permit

HB 2106 (Carrico) was amended to clarify that fingerprinting can be done when applying for a concealed weapons permit but not for renewal applications. As introduced, the bill would have done away with fingerprinting all together. The amended bill clarifies what is already being done.

Some localities, however, were not following the law and were fingerprinting for renewal applications and/or requiring additional paperwork that was not required by law to process the applications. Del. Charles Carrico agreed to amend the bill on the condition that localities properly educate their law enforcement officers, who process these applications, and inform them of the lawful way to process concealed handgun permits.

FOIA bill applies to local retirement systems as well as VRS

SB 1369 (Bell) would amend the Freedom of Information Act to exempt records and meetings of the VRS and local retirement system boards on internal investment strategies and the selection of investment managers prior to the time the decisions on the strategies and the selection of the managers are made.

Once those actions are taken, records would be subject to FOIA. The bill also exempts records furnished by private investment partners such as trade secrets, financial statements, investment performance or subscription agreements, to the extent that the release of the information would adversely affect investment returns. The bill was requested by the VRS Board of Trustees. A private equity firm recently quit doing business with VRS because of the firm's concern that investment information was subject to disclosure under the FOIA statute.

According to the Bob Schultze, the executive director of VRS, the firm had invested VRS money since 1990, and had produced an annualized return of 93 percent. The bill is in the Senate General Laws Committee.

Bills would shift State Fire Marshal and Fire Safety Code from DHCD to public safety

Two bills have been referred to the House General Laws committee that would transfer the office of the State Fire Marshal from the Department of Housing and Community Development and have it report directly to the Secretary of Public Safety.

HB 2356, introduced by Del. John Cosgrove (Chesapeake), and identical HB 2457, introduced by Del. Ben Cline (Amherst), would also transfer responsibility for promulgating and enforcing the Statewide Building Code from the Building Code Review Board to the Fire Programs Board.

Our understanding is that the building officials' statewide organization opposes the bills, while the fire chiefs' association and the firefighters' unions support the proposed change.

VML would appreciate hearing any comments localities may have on this issue.

Contact: Roger Wiley roger.wiley4@verizon.net

Economic revitalization zones bill approved by committee

HB 1974 (Fralin) authorizes cities to create "economic revitalization zones" to provide an incentive for private developers to improve and redevelop urban areas. The bill was reported by the Counties, Cities and Towns Committee. It allows a city to reduce permit fees and user fees; to reduce the BPOL tax; and waive tax liens in order to facilitate the sale of properties for new uses. The bill also allows the city to be flexible in regulations dealing with zoning, including special permits; and allows significant local flexibility in its regulations.

House budget amendments now on line

Budget amendments introduced by members of the House of Delegates may now be viewed on-line. Go to the State Budget page of the Legislative Informative System and look for House Appropriations Amendment Requests under the heading "Budget Amendment Request Forms." You can look at the amendments by item number (corresponding to items in the Appropriations Act) or by member. Jan. 18 was the deadline for Senate budget amendment requests. Amendments proposed by senators should be available on-line by the middle of next week. The link to these amendments will be just below that for the House amendments.

Helpful human services budget amendments proposed

Del. Phil Hamilton (Newport News), chair of the House Appropriations Health and Human Resources Subcommittee, has introduced a number of budget amendments helpful to local governments. Two of particular interest to localities are listed below. Local governments should tell their members on the House Appropriations Committee to support these amendments. If members do not hear from their communities, there is much less likelihood that the amendments will be successful:

Eliminate the local match for the Auxiliary Grant Program (Item 337 # 2h). This amendment would provide almost $6.5 million to pay the local share of monthly payments to the AG Program. Local governments currently pay a 20 percent match for this program. Auxiliary grants are payments made on behalf of eligible low-income, aged or disabled individuals for housing-related costs in assisted living facilities. The cost of this program disproportionately affects a select number of cities and counties because the lower-cost assisted living facilities that accept Auxiliary Grant recipients are mostly located in cities with older housing stock or in the communities bordering Tennessee and North Carolina. No matter what state or community the individuals come from, the locality in which the assisted living facility is located usually ends up paying the local match for this program.

Increase CSA state administrative funding (Item 279#1h). This amendment would provide an additional $4.2 million in state funds in 2008 for local Comprehensive Services Act for At-Risk Youth and Families (CSA) administration. The state share of administrative funding has not increased since 2000. Currently, the state provides $1.5 million annually to localities, who administer this highly complex program on behalf of the state. In FY05, nearly 73 percent of local governments received less than $10,375 in state funds to help administer CSA. JLARC's 2006 report on the CSA program recommended greater state funding of local administrative costs.

The members of the House Appropriations Health and Human Resources Subcommittee are: Dels. Hamilton (Chair; Newport News); Morgan (Gloucester); Cox (Colonial Heights); Landes (Weyers Cave); Jones, S.C. (Suffolk); Spruill (Chesapeake); Brink (Arlington); and BaCote (Newport News).

CSA bills now in committee

Three bills that would significantly expand the scope of the mandated population for the Comprehensive Services Act for At-Risk Youth and Families (CSA) are now in committee. These bills were introduced following an Attorney General's Opinion issued in December regarding foster care services, and more specifically, mental health services, to children not mandated under the CSA program.

HB 2150 (Fralin) would provide that "foster care services" means provision of services to a child and his family when the child has been identified as needing services to prevent or eliminate the need for custody relinquishment. This would expand the mandate for CSA services to children and their families who would be more appropriately served through the mental health system. The bill is in the House Courts of Justice Subcommittee on Civil Law, chaired by Del. Terry Kilgore (R-Gate City). The patron discussed the bill at the subcommittee's Wednesday afternoon meeting, but given the disagreement over the bill, Kilgore asked the interested parties to work with the patron on the differences and bring the bill back up in two weeks (Jan. 31).

HB 2620 (Fralin) and SB 1332 (Devolites Davis) are identical bills that would add children requiring mental health services not otherwise covered by private insurance or Medicaid, where services are necessary to prevent foster care placement, to the target (i.e., mandated) population for whom state pool funds shall be expended. Again, these are children and families who would be much better served through the mental health system, not foster care.

HB 2620 has been assigned to House General Laws Subcommittee #4, chaired by Del. John Cosgrove (Chesapeake). The subcommittee meets Tuesdays at 5 pm in 4th Floor West.

SB 1332 has been assigned to Senate General Laws, chaired by Sen. Walter Stosch (Henrico). The committee meets Wednesdays at 2 pm in Senate Room B.

VML, VACo, and the Virginia League of Social Services Executives are attempting to get these bills, that contain a significant state and local impact, referred to the House and Senate budget committees.

Post employment benefits bill before Senate Finance

SB 789 (Stosch) allows political subdivisions to establish trusts for the prefunding of post employment benefits (such as medical insurance for retirees). The bll also allows political subdivisions to contract with VRS to serve as the money manager for the trusts. The bill will be heard at the 9 a.m., Jan. 24 meeting of the Senate Finance Committee.

Fertilizer bill re-introduced

SB 1061 (Watkins) would prohibit local governments from regulating the "registration, packaging, labeling, sale, storage, distribution, use or application of fertilizers more stringently that the U.S. Environmental Protection Agency or the Department of Environmental Quality."

VML opposed similar legislation last year.

This version stipulates that its provisions do not preempt the adoption or enforcement of the State Fire Prevention Code. Still, the proposal is a concern for local governments, which are responsible for managing stormwater runoff programs that include nutrient management. The Senate Agriculture Committee will hear the bill on Jan 22.

Biosolids public hearing scheduled

A subcommittee of the House Agriculture Committee will hold a public hearing on several biosolids bills introduced this year. The public hearing will be held at 3 p.m. on Tuesday, Jan. 23. The location has not yet been determined. The legislation includes HB 2079 (Wittman) a bill that shifts much of the biosolids regulatory program from the Department of Health to the Department of Environmental Quality.

HB 2802 (Byron) also shifts chief responsibilities for administering the biosolids program to DEQ. Significantly, HB 2079 triples the current locally enacted fee of $2.50 for each "dry ton" of biosolids that is land applied to $7.50 per dry ton, and makes the fee subject to all land applications of biosolids on a statewide basis. Currently, the fee is only imposed upon a contractor land applying biosolids when authorized under a local ordinance. The increased fees would be used to conduct a more aggressive inspection and monitoring programs.

HB 2801 (Byron) and SB 1313 (Hawkins) require applicants for permits to land apply biosolids to certify as a condition permit approval that the practice would be consistent with all related local ordinances. This bill also provides localities with the authority to "reasonably restrict" land applications of biosolids to certain areas. SB 1300 (Newman) gives localities the authority to adopt ordinances requiring a special exception or special use permit for the routine or temporary storage of biosolids.

Finally, HJR 694 (Byron) would convene a "panel of experts"to conduct a two-year study the impact of land application of biosolids. VML's environmental quality policy statement supports biosolids recycling on farms as regulated by EPA, Virginia Department of Health, and Department of Environmental Quality, and the continued state regulation and approval of recycling applications.

Dam break inundation zone proposal deferred

The Department of Conservation and Recreation has asked that local government staff and other officials work with the department in the coming months to address the issue of increased development in "Dam Break Inundation Zones." Draft proposals would have required local governments to map dam break inundation zones, among other requirements. The additional review time may result in legislative proposals for 2008.

Muzzle-loading rifle bill to be heard

Legislation that removes the authority of localities to adopt ordinances that permit the use of muzzle-loading rifles during prescribed open seasons, SB 950 (Quayle) could affect several local governments, including Virginia Beach, Poquoson and Suffolk.

The Senate Agriculture Committee deferred action on this bill until its regular meeting on Jan. 22.

Hunting bill amended to protect existing ordinances

The House Agriculture Committee amended and reported a version of HB 2308 (Lingamfelter) that makes local adoption of a model hunting ordinance optional, without nullifying any existing ordinances.

As introduced, HB 2308 would have required the Department of Game and Inland Fisheries to develop model statewide hunting ordinances that could have nullified existing local ordinances.

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