VML legislative staff thanks YOU!

The VML legislative staff thanks all of our local government members who took the time to contact legislators during the General Assembly session on bills of interest to cities, towns and counties. The VML staff would not be as successful at getting the bill results we are seeking without the help of our local members. Nothing is more effective than a senator or delegate hearing from a constituent. Hats off to you for your hard work!

Homestead exemption passed

The House of Delegates voted 97-0 in favor of the constitutional amendment that would authorize the General Assembly to enact legislation to allow localities to exempt or defer real property taxes for some property owners. SJR 354 permits the exemption or deferral of taxes on up to 20 percent of the value of the primary residence of a homeowner. The amendment will need to be passed in the exact same form in the 2008 session before going before the voters in the November 2008 general election.

Re-regulation of electric rates sent to governor

Both the Senate and House voted overwhelmingly in favor of re-regulating the electric utility industry. Under the provisions of the bills, local governments (and other political subdivisions) may aggregate the energy loads of their facilities in negotiating terms and rates that preserve the rights of the VML/VACo electric rate committees to negotiate with the utilities on rates – a practice of more than 30 years.

Transportation deal in conference committee

A conference committee of five senators and six delegates is attempting to iron out the details of a transportation-funding plan. The 11 conferees charged with negotiating a compromise measure for HB 3202 (Howell) must complete their work this week. HB 3202 (Howell) addresses transportation funding and land use measures. The House plan relies on an annual general fund transfer of $250 million and forces counties to take over new subdivisions roads (outside designated growth management areas). The Senate version of the bill in conference protects the general fund and avoids the devolution of new subdivisions streets. VML continues to oppose the ongoing transfer of General Funds to support transportation. (The transportation-funding problem should be addressed by increasing transportation user fees including the gas tax and the motor vehicle sales and use tax.) The House and Senate conferees for HB 3202 include Dels. Griffith, Kilgore, Cox, S.C. Jones, Hugo and A.T. Howell. The five Senators include Williams, Wagner, Puckett, Norment and Stolle.

Senate defeats eminent domain constitutional amendment; other bills remain

The constitutional amendment to restrict eminent domain failed in the Senate Thursday evening 16-21. HJ 723 (Bell) would have amended the constitution by placing severe restrictions on eminent domain authority.

The vote took place not long after the Senate had approved HB 2954 (Bell), the major eminent domain bill that redefines the term "public use" and addresses the Kelo decision of the U.S. Supreme Court. Most senators agreed that a constitutional amendment was not needed in light of the strict statutory language in HB 2954.

The surviving eminent domain bills -- HB 2954 (Bell), SB 781 (Cuccinelli) and SB 1296 (Newman), have all been referred to a conference committee to address the minor differences between the House and Senate versions. The conferees on HB 2954 are Sens. Obenshain, Newman and Edwards, and Dels. Athey, Bell and Joannou. The conferees on SB 1296 and SB 781 are Sens. Cuccinelli, Newman and Edwards and Dels. Athey, Bell and Joannou.

All three bills are identical, except for two provisions.

• HB 2954 was amended by the Senate to allow housing and redevelopment authorities to take non-blighted property in a redevelopment area if the area is at least 85 percent blighted. The blight definition is so restrictive that the provision has limited usefulness. The House refused to accept that amendment. This issue will be worked out by the conferees and the bills will be presented to the full House and Senate for approval of the conference report.
  
• HB 2954 allows condemnation in redevelopment projects that were filed prior to Jan. 1, 2007, if the petition to condemn is filed before July 1, 2009.
  

Please contact your delegates and senators to urge support for preserving the authority for the housing authorities, to support the two provisions in HB 2954 set out above and to ask them to vote against the bills when they are presented on the floor for a vote.

Remind them that the bills will put an end to development projects that today create new neighborhoods in place of old, decaying blighted areas.

If you have comments or questions contact Randy Cook at (804) 746-3773.

Bill liberalizing hunting near subdivisions killed

The bill would have taken away a locality's authority to prohibit hunting within a half-mile radius of a subdivision -- HB 3109 (Janis) -- was killed when it was referred to a Senate committee that will not meet again this session.

Post employment benefits bill passed

The bill to authorize localities and other political subdivisions to establish trusts in order to pre-fund post employment benefits has been passed by both Houses. SB 789 (Stosch) does not include the language to permit local governments to contract with the Virginia Retirement System to serve as money manager for the trusts, but at least makes it clear that political subdivisions can establish these accounts. New standards issued by the Governmental Accounting Standards Board require that governments recognize the cost of benefits promised to retirees during the time period that the employee is on the payroll, as opposed to when the employee actually retires. Larger local governments must start recognizing the cost of these post employment benefits in their audits for FY07; all local governments will be subject to the standards by FY10. The most common post employment benefit is health insurance for retirees.

Bay bonds bill conferees announced

The House and Senate continue to disagree on an approach to funding Chesapeake Bay clean-up. The disagreement has sent HB 1710 (Callahan) and SB 771 (Chichester) to a committee of conference.

At issue is when Water Quality Improvement Fund grant reimbursements would be made to local governments that have added nutrient removal facilities to their wastewater treatment plants. Also in dispute is the amount of additional money that would be added to the WQIF, and whether bonds would be used to help fund the projects.

Conferees on HB 1710 include Sens. Watkins, Ruff and Whipple; and Dels. Callahan, Wittman and Dance. Conferees on SB 771 include Sens. Chichester, Wampler and Stosch; as well as the three 1710 conferees, Callahan, Wittman and Dance.

CSA bill passes with re-enactment attached

The House passed an amended version of SB 1332 (Devolites Davis) – the bill that would increase the mandated population served under the Comprehensive Services Act for At-Risk Youth and Families (CSA) program to include children with mental health conditions whose private insurance has been capped out, or lack private insurance, and are not Medicaid-eligible.

The Senate concurred with the House amendments, so the bill is on its way to the governor. The House attached a re-enactment clause to the bill, which means that the 2008 regular session of the General Assembly would have to pass the bill in order for it to go into effect. The other House amendment would require local governments to impose a sliding scale for parental co-payment for services. A similar House bill, HB 2620 (Fralin) died in the House Appropriations Committee.

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