Local Governments Working Together Since 1905
Legislative Bulletin

February 2, 2007


500 local officials attend Legislative Day

About 500 local officials from across the state attended the annual VML/VACo Legislative Day activities in Richmond on Thursday. The highlight of the program was remarks by Gov. Tim Kaine, who encouraged local officials to support the use of non- general funds for transportation and the continuing role of the state as a "meaningful partner" in solving transportation problems.

Transportation plan reported from the Senate Finance Committee

A new transportation funding plan emerged from the Senate Finance committee meeting on Feb. 1, in front of a room packed with local officials and a variety of transportation lobbyists. The new plan was reported by the committee after the original House-Senate compromise plan, SB 1417 (Norment) was defeated on a 4-11 vote. (SB 1417 was a modified version of the current House plan, HB 3202 (Howell.) SB 1379 (Potts) was the vehicle for the substitute plan, which was endorsed by the committee on a 9-6 vote. The plan proposes to:

* Remove the sales tax exemption from the sale of gasoline products (this applies the 5-cent sales tax to the price of gas) (this exemption is not in HB 3202, and is the big difference between the two plans) - Cities and counties would receive their 1-cent of the 5-cent sales tax on gas, earmarked for transportation. The sales tax on gas would generate roughly $500 million per year - $100 million for cities and counties, and $400 million for the state's transportation fund. (According to the Senate Finance committee staff, 25 percent of the gas tax is paid by out-of-state motorists).

* Dedicate one-third of all insurance premiums to a revolving debt service account in the Priority Transportation Fund (a similar provision are in HB 3202)

* Increase vehicle registration ($10), increase fees based on weight on heavy trucks, impose abusive driver fees (at amounts lower than the compromise plan), and equalize diesel fuel tax with gasoline tax (similar provisions are in HB 3202).

* Dedicate $66 million annually in general funds to transportation (this compares to $250 million annually in HB 3202) The $66 million is described as an error in the allocation of the sales tax that was corrected in September but not previously adjusted on an on-going basis

The regional transportation plans provide local authority for the following:

Hampton Roads Regional Plan

Major features include:

* 30-cent grantor's tax

* 2 percent motor vehicle rental fee

Northern Virginia Regional Plan

Major features include:

* ½ cent local sales tax

* 1 percent initial vehicle registration fee

* 2 percent transient occupancy tax

* 2 percent motor vehicle rental fee

* 40-cent grantor's tax

This new plan does not include the local ability to tax commercial real estate at a separate rate.

Four speakers representing local goverments spoke in favor of SB 1379, citing VML and VACo support of a comprehensive transportation plan, additional local land-use authority to manage growth and the need for new, dedicated revenues for transportation. Those speakers were VML President Rayetta Webb, a member of the Altavista Town Council; Franklin Mayor James Councill, a member of the VML Executive Committee; VACo President Teresa Altemus, a member of the Gloucester County Board of Supervisors; and Fairfax County Board of Supervisors Chair Gerry Connolly.

The local officials expressed concern over a growing dedication of general funds for transportation. SB 1379 will now be tested on the Senate floor.

Meanwhile, in the House, delegates must still decide how to proceed on HB 3202, Speaker Bill Howell's version of the original House-Senate compromise. That bill was reported from the House Appropriations Committee 18-4 vote on Jan. 31, but has not yet reached the House floor. Improvements to the local land-use portions of the bill were adopted by the committee.

599 funding tabled by patron, but not dead yet ...

HB 2200 (Wardrup) would repeal the structure and formula for distributing certain state funds for local law enforcement in localities that have a police department, and appropriate the associated funds for transportation projects in all localities on a pro rata basis, based on population. The patron, Del. Leo Wardrup of Virginia Beach, requested the bill be laid on the table. The bill, however, could resurface again before crossover.

Wardrup's introduction of the bill sends a message to localities that this funding can be removed at any time and that localities should not take 599 funding as a given steam of revenue. Educating your senator and delegates throughout the year on how essential this funding is to your locality is important.

Taxation constitutional amendments not acted on in committee

The constitutional amendments eliminating the personal property tax on motor vehicles used for non-business purposes, establishing spending and revenue limitations on state and local governments and exemptions some veterans' property from real estate taxation were not acted on at the House Privileges & Elections Committee meeting on Feb. 2.

A committee member tried to bring those amendments, as well as others dealing with a unicameral legislature and religious freedom, before the committee but was not successful. The committee is not scheduled to have any more meetings before crossover, so these amendments should be dead for this session.

Of particular interest to local governments were HJR 581, dealing with tax exemptions for property owned by veterans; HJR 585, dealing with taxation of motor vehicles used for non-business purposes; and HJR 684, placing taxing and spending limitations on the state and local governments. The committee also reported HJR 593, a constitutional amendment introduced by Del. Morgan Griffith of Salem, that will allow the General Assembly to suspend or nullify administrative rules and regulations.

House Transportation Committee to take up major land-use bills tomorrow

HB 3196 (Athey) provides that counties with a high growth rate must establish "urban development areas." The areas must accommodate residential growth for a 20-year projection of new residents. The residential density must be four units per acre, or three times the density of the area outside the district.

As currently written, the bill strikes 50 percent of the county's road construction money if it fails to adopt the program. The transportation committee will take up the bill Saturday morning, Feb. 3. The patron plans to have a substitute that removes the 50 percent money loss. The proposed substitute version was developed in cooperation with VML and the Virginia Association of Counties.

HB 3197 (Athey) allows counties with a population of more than 90,000 to create urban transportation service districts. The current version of the bill allows any county that creates these special tax districts to deny rezonings for lack of adequate off-site roads. The patron will likely offer a substitute that removes the denial of rezoning provision. This would be a good step because all localities currently have that power. If the power were limited to the largest counties, by negative implication, all other localities would lose the power. The current version allows any county that creates the districts to impose impact fees on agricultural land for a wide range of public infrastructure, such as schools, water and sewer and roads.

Eminent domain constitutional amendment advances

A constitutional amendment amending the Bill of Rights by defining in some detail the conditions under which eminent domain authority could be exercised was reported by the House Privileges & Elections Committee at its Feb. 2 meeting. A substitute for the amendment -- HJR 723 (Bell) -- was presented and quickly approved and reported out. The public was not given the opportunity to speak for or against the amendment.

VML believes that passage of a constitutional amendment on eminent domain is premature, as the General Assembly is grappling with writing detailed statutory language that changes substantially the current Code of Virginia provisions on this issue.

Homestead exemption goes to Senate floor

The Senate Finance Committee reported the only constitutional amendment that is still alive pertaining to homestead exemptions. SJR 354 (Rerras) allows the General Assembly to enact legislation to allow local governments to set restrictions and conditions on the exemption, partial exemption, or deferral of real property taxes. The exemption is limited to residential or farm property that is designed for continuous habitation and is the primary dwelling of the owner. SJR 354, patroned by Sen. Nick Rerras of Norfolk, incorporates a number of other constitutional amendments introduced on real estate taxation, including amendments introduced by Sen. Mary Margaret Whipple of Arlington, Sen. Fred Quayle of Chesapeake and Sen. Frank Wagner of Virginia Beach.

Shooting range bill reported from committee

HB 3109 (Janis) was reported out of the House Militia, Police and Public Safety Committee. The bill will remove the half-mile safety net around a subdivision and will allow the National Rifle Association a governmental-like role in approving and operating firing ranges.

Counties, Cities & Towns Committee reports affordable dwelling unit ordinance

HB 2010 (Suit) is a compromise bill to amend the provisions of the general state law authorizing affordable dwelling unit programs. It allows increased densities of a residential project, so long as a percentage of the units are dedicated as affordable units. It provides incentives for a developer to increase the density by 30 percent (up from the existing law's 20 percent) if affordable dwelling units are made part of the project being constructed. In addition, in lieu of building affordable units, the developer could pay into a housing fund that the legislation allows the locality to create. The bill is likely to be amended further as the housing officials from several cities continue to work with the patron of the bill to refine its terms.

Committee reports bill to impose stiffer penalties overcrowded residential structures

The Counties, Cities and Towns Committee reported HB 2261 (Rust) that provides for increased civil penalties for violations of a zoning ordinance provision limiting the number of unrelated persons who occupy a residence. This provision will help localities fight property owners who convert single-family homes into boarding houses in violation of the rules.

Bill shortens subdivision review time; opens PSA easements to power companies

HB 2544 (Lingamfelter) is intended to limit the amount of time public service authorities and state agencies have to review subdivision plats. The legislation, however, also requires public service authority easements to be made available to power companies and other utilities. The patron has agreeably compromised on the bill so that only easements located in a public right of way for a street or road would need to be shared. We are evaluating whether additional changes need to be made in order to provide safe separation of water lines from electric, gas and telephone lines.

Photo-red bill bill reported out of House Transportation

HB 1778 (Cosgrove), a substitute version that incorporates several other House bills on photo-red, was reported out of the House Transportation Committee. This technology takes pictures of drivers who run red lights. An amendment was added to the bill that penalizes anyone $1,000 for unauthorized release of information pertaining to the red light runner.

Campaign contribution bill tabled

Legislation to tighten considerably campaign contributions to local officials was tabled at the Feb. 2 meeting of a House Privileges & Elections Committee. Del. Jackson Miller (Manassas), Del. Jim Scott (Fairfax), Del. Chris Jones (Suffolk), Del. Robert Bell (Albermarle) and Del. Bob Brink (Arlington) asked particularly helpful and insightful questions during committee discussion of the bill, HB 3012. The bill would have prohibited local officials from receiving campaign contributions from any person who had a personal interest in a matter pending before the local governing body, or for 90 days following action.

Optical scan voting machines bill reported

The House Privileges & Elections Committee reported legislation that will prohibit localities from purchasing direct recording electronic voting machines after July 1, 2007. Provisions from the original bill that required audits after each election were deleted, making the bill more palatable for local registrars. The bill, HB 2707, introduced by Del. Tim Hugo of Fairfax, also gives the State Board of Elections authority to distribute any federal funds that may be forthcoming on voting machines. Congress is considering yet more legislation dictating what type of voting machines may be used, as well as requirements for audits of elections.

House, Senate budget bills to be released Sunday

The House and Senate will release their versions of the state budget on Sunday (Feb. 4). While it is the official release of the budget, the details of each budget proposal will not be available until Tuesday afternoon, Feb. 6, when all of the amendments to the budget are presented to General Assembly members (and put on-line as well).

The VML Legislative Bulletin will feature a general overview of the competing proposals early next week. We will present a more comprehensive review of the budget proposals later in the week after staff has had an opportunity to review the individual amendments. The individual budget amendments will be available for the public to view on-line Tuesday afternoon. The link to the amendments will be on the state budget page of the LIS Web site.

Committees handle CSA bills

Two bills that would significantly expand the scope of the mandated population for the Comprehensive Services Act for At-Risk Youth and Families (CSA) were acted on Thursday. These bills were introduced following an attorney general's opinion issued in December regarding mental health services to children not mandated under the CSA program.

The two bills, HB 2620 (Fralin) and SB 1332 (Devolites Davis) were identical going into yesterday's meetings. The bills 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 mandated population for whom state pool funds and local match shall be expended. These are children and families who either lack insurance coverage, or their private insurance will not cover mental health services. VML believes they would be more appropriately served through the mental health system, not as a part of the foster care or CSA system.

The patrons amended their bills earlier this week to narrow down the size of the population that would be included in the new mandate, but it still was unclear how many children it covered (the patrons estimated up to 500 children statewide). The House General Laws Committee reported and referred HB 2620 (Fralin) to the House Appropriations Committee. The bill is now in the House Appropriations Committee. The subcommittee in which this bill would be heard has not yet scheduled a meeting.

The Senate Finance Committee amended and reported SB 1332 to include "the clause." This states that the provisions of the bill will not go forward unless money is appropriated in the 2007 budget to carry it out. The Senate Finance Committee would have to include funding in its budget proposal presented this Sunday to pay the state share of costs for this new mandated population.

Two resolutions affecting CSA before the General Assembly

HJR 774 (Kilgore) is on the House floor. This resolution recognizes that children's mental health services should be provided through the state's mental health, mental retardation and substance abuse services system, and that neither the Department of Social Services nor the Office of Comprehensive Services should become the default system for mental health services.

It calls for the Secretary of Health and Human Resources to develop budget recommendations for the 2008-2010 biennium that fund and facilitate service delivery through the state's MHMRSAS system.

VML, in cooperation with VACo and the Virginia League of Social Services Executives, worked on development of this resolution.

SJR 402 (Hanger) is before the Senate Rules Committee. This resolution asks JLARC to study the fiscal impact of the recent Attorney General's Opinion regarding CSA and services to children with mental health needs who are not a part of mandated population. VACo and VML support this resolution.

Wastewater funding bills moving forward

Two bills that would provide state funding for upgrades to public sewage treatment plants that discharge to the Chesapeake Bay are moving forward. A substitute for SB 771 (Chichester) was engrossed by the Senate on Feb. 2 and is on its way to the House. A substitute for HB 1710 (Callahan) was passed by the House and has been sent to the Senate. Several bills address funding for Chesapeake Bay clean up.

The SB 771 substitute would authorize the Virginia Public Building Authority to issue $250 million in bonds for grants to fund nutrient removal technologies at specified publicly owned treatment works but only if no funding is otherwise available to the Water Quality Improvement Fund.

The substitute for HB 1710 uses bonds, but only after state general funds have been spent. Both bills include additional "checks and balances" and efficiency measures governing the use of the grants.

No action on solid waste tipping fee

A bill that would institute a waste disposal or "tipping fee" to be paid on each ton of solid waste received at a landfill, HB 1945 (Purkey), remains in committee. The proposed fees would range from 50 cents up to $1 per ton, depending upon trash volume, and would be deposited into the state general fund. The proposal is still in the House Committee on Agriculture, Chesapeake and Natural Resources.

Committee will hear bill to consolidate state's environmental boards

Legislation consolidating the state's three citizen environmental boards -- the Air Pollution Control Board, the State Water Control Board and the Waste Management Board -- into a single board and giving authority to approve or deny environmental permits to the director of the Department of Environmental Quality is being heard in full committee on Feb. 3.

The bill -- HB 3113 (Landes) -- is in the House Committee on Agriculture Chesapeake and Natural Resources.

Localities exempt from DMV fees

A bill that exempts local officials from fees charged by the state Department of Motor Vehicles for obtaining information from its database passed the House and has been referred to the Senate Committee on Transportation. Local governments requested the legislation -- HB 1930 (Rapp). Local governments use the data to determine eligibility for public assistance, as well as to ensure that school bus, refuse and other local government drivers have safe driving records, among other things.

Troublesome bill on fertilizer regulation amended

Legislation that would have hampered local governments' ability to manage stormwater runoff from applied nutrients was amended to remedy concerns voiced by local governments.

A substitute for SB 1061 (Watkins) allows local governments to regulate the use, application, or storage of fertilizers by ordinances consistent with the requirements of the Chesapeake Bay Preservation Act, the Erosion and Sediment Control Law, the Stormwater Management Act or other nonpoint source regulations promulgated by the Department of Conservation and Recreation or the Soil and Water Conservation Board.

In addition, the substitute does not preempt the adoption, amendment, or enforcement of the Statewide Fire Prevention Code and the Uniform Statewide Building Code, satisfying local governments' concerns over the safe storage of fertilizers, particularly nitrogen, which can be explosive. The bill passed the Senate on Feb. 1, and was sent on the House.

Penalty increase for erosion and sediment control ordinances

A bill that would give local governments more discretion to impose a civil penalty for violation of their erosion and sediment control ordinances passed the Senate. SB 821 (Devolites Davis) raises the fine for a single violation to up to $1,000 (from $100). The ability to levy higher fines could help local governments better enforce local erosion and sediment control programs.

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