Local Governments Working Together Since 1905

Legislative Bulletin

January 23, 2008

Homestead exemption legislation moving forward

Constitutional amendments to allow the General Assembly to authorize localities to exempt or defer up to 20 percent of the assessed value of residential property of owner-occupied homes are slowly coming under consideration by the General Assembly. A Senate Privileges & Elections subcommittee recommended reporting SJR 6 (Whipple) and SB 9 (Whipple) on Jan. 22; the full committee will take up the measures at its Jan. 30 meeting. SJR 6 is the same resolution as the one that passed in the 2007 session and SB 9 is the measure to put the question on the ballot for the November election. In order for a constitutional amendment to appear on the ballot, the General Assembly must pass it in the exact same form in two sessions separated by a General Election.

A House Privileges & Elections subcommittee was scheduled to take up measures relating to the homestead exemption at a Jan. 23 subcommittee; if approved, the measures would likely be before the full committee at its Friday morning – Jan. 25 – meeting. The House has three resolutions that are identical to SJR 6 and to the measure enacted last year: HJR 3 (Brink), HJR 4 (Albo), HJR 56 (Miller, P.) and HJR 121 (Moran). The bills to put the measure on the ballot are HB 6 (Brink) and HB 11 (Albo). HB 6 puts the measure on the ballot for the November 2008 general election; HB 11 delays the referendum until the November 2009 general election.

Even more importantly, legislation to implement the amendment also is up for consideration. The Senate Finance Committee reported SB 496 (Northam) at its Jan. 23 meeting. The bill tracks the language in the constitutional amendment, thus giving localities broad discretion in setting the terms and conditions of any tax relief program offered. The House P&E Committee that is scheduled to meet the evening of Jan. 23 also has before it two implementation bills: HB 1045 (Watts) and HB 1148 (Miller, P.). HB 1148 is identical to Northam’s bill.

VML supports a real estate homestead exemption, on a local option basis, granting local elected officials maximum authority to establish fiscal policies specific to their jurisdictions, provided that such state legislation could be implemented consistently with our guiding principles. Staff contacts: Neal Menkes (nmenkes@vml.org; Mary Jo Fields (mfields@vml.org)

Proposals address collection and release of social security numbers.

Two bills dealing with the collection, use and disclosure of individual Social Security numbers have been introduced. A joint subcommittee of the Freedom of Information Advisory Council (FOIAC) and the Joint Commission on Technology and Science (JCOTS) has been studying the issue for the past year.

SB 132 (Houck) would amend the Government Data Collection and Dissemination Practices Act (GDCDPA) to:

SB 132 has a delayed effective date of July 1, 2009. It includes a requirement in the meantime that all state agencies and all counties and cities, as well as towns over 15,000 population catalogue and report to VFOIAC by Sept. 10, 2008 all of the current instances in which they require individuals to furnish Social Security numbers, the statutory authority for doing so and an explanation why it is essential in each instance to continue imposing such requirements. The FOIAC will work with VML and VACo to develop a questionnaire for collecting this information

Several years ago the General Assembly adopted Va. Code § 59.1-443.2, which made it unlawful for any person to intentionally communicate someone else’s SSN to the general public. That section does not apply currently to government agencies, or to a private individual’s public disclosure of an SSN obtained from a record that is open to the public under FOIA. HB 633 (May) would keep government agencies exempt from the prohibition in § 59.1-443.2, but would eliminate the exemption for a private individual disclosing an SSN obtained for a public record.

Another measure, HB 1102 (Sickles), would exempt disclosure of SSNs in public records from required FOIA disclosure to any person except the holder of the SSN. VML staff contact: Roger Wiley, roger@heftywiley.com.

Fireworks authority bill strips local authority

HB 1353 (Gear) would end local authority over fireworks, and replace it with enforcement via the state Fire Prevention Code. Some local governments have made the decision to follow the fire prevention code. Some localities, especially larger ones, exercise local authority over fireworks that go beyond the state regulations. The bill specifically prohibits local authority that exceeds the state code provisions.

Please help VML on this bill by responding to the following:

1. Does your locality enforce regulations on fireworks that exceed the state fire prevention code?

2. If you do, please send a copy of the regulations to VML.

Please send your comments to Kimberly Pollard – kpollard@vml.org.

CSA budget amendments introduced

VML and VACo worked together to draft and have introduced a number of budget amendments regarding the Comprehensive Services Act for At-Risk Youth and Families (CSA). These budget amendments will be considered as the House Appropriations and Senate Finance Committees develop their versions of the budget.

One budget amendment would eliminate the language in HB 30 (the two year state budget) that changes the CSA match rates for community and residential based services.

Two budget amendments in HB 30 (Del. Hamilton; Sen. Houck) would amend the phase-in period for the proposed changes in residential match rates so that the first increase would come in January 2009, instead of July 1, 2008. They also would require the Secretary of Health and Human Resources to establish an implementation workgroup to prepare guidelines for the proposals in the introduced budget. VML and VACo would be included on this workgroup. Finally, these amendments would exempt from the increased residential match rates all residential placements that are beyond the control of local governments: those ordered to residential treatment by a Juvenile & Domestic Relations Court judge; those whose special education IEP, adopted by a public school division, requires it; and those children who are newly-mandated under CSA according to the state guidelines that went into effect on Dec. 3, 2007.

Two budget amendments in HB 29 (the current year budget) introduced by Del. Bill Carrico and Sen. William Wampler would require that CSA abide by the Administrative Process Act (APA). CSA currently is exempt from the APA.

Three budget amendments in HB 30, introduced by Dels. Bud Phillips and Harvey Morgan and Sen. Thomas Norment, would increase the state’s participation in the administrative costs of the CSA program by $2.5 million each year. The Joint Legislative Audit & Review Commission (JLARC) recommended this increase in state participation. Local governments currently pay about 90 percent of the administrative costs of CSA, on top of their required match on services in this program. Staff contact: Janet Areson (jareson@vml.org).

Bill would help simplify WQIF accounting and reimbursement

SB 690 (Watkins) greatly simplifies for local governments the reimbursement process for Water Quality Improvement Fund grants for the construction, expansion or upgrade of nutrient removal technology. The bill would authorize the Department of Environmental Quality to reimburse localities for the costs of nutrient removal upgrades at wastewater treatment plants on a monthly basis, so long as there is written certification from the grant recipient that the local share of the project costs have been expended. Last year, the General Assembly changed the reimbursement process, requiring reimbursements to be phased, based on written certification that 25 percent, 50 percent, 75 percent and 100 percent of the local share of the project cost had been expended. The proposed language in SB 690 facilitates cash flow and simplifies the reimbursement process for local governments undertaking these major construction projects. Staff contact: Denise Thompson (dthompson@vml.org).

House, Senate advance abusive driver fee repeals

Legislation that would do away with abusive drivers fees passed the House on Monday, and moved on to the Senate. The bill repeals the fees, but does not specify a source of replacement revenue, estimated to be as much as $65 million annually. Similar legislation originating in the Senate passed the Finance Committee, and is headed to the Senate floor.

On the House side, HB 649 (Hogan) repeals the civil remedial fees on abusive drivers passed in 2007. The bill also prohibits auto dealers from collecting license and registration fees imposed by the Hampton Roads Transportation Authority or the Northern Virginia Transportation Authority. SB 1 (Houck) repeals the abusive driver fees and provides for refunds of any fees paid, with interest. A similar bill, SB 469 (Hanger), proposed not only to repeal the fees, but, to replace them with a two-cent increase in the fuel tax. The Hanger bill was folded into SB 1. The Senate Finance Committee deleted the revenue replacement language, however, and reported SB 1 on Jan. 23. The measure now moves to the full Senate. Gov. Tim Kaine has asked the General Assembly to repeal the fees. Staff contact: Denise Thompson (dthompson@vml.org).

Transportation revenues fail to meet new service demands

In a presentation before the Senate Finance Subcommittee on Transportation, VDOT reported that despite new revenues and bond proceeds from last year’s transportation funding bill, growth in the agency’s maintenance program is consuming the new revenue increases.

Total maintenance funding, which is VDOT’s top priority, exceeds construction program funding. In FY08, the maintenance budget, which includes both VDOT maintenance and locality maintenance payments, is $1.6 billion compared to the highway construction budget of $1.4 billion.

In developing his budget proposals, Gov. Tim Kaine reduced transportation revenue estimates for the current and next six years by $387 million, citing reductions in motor fuel taxes, motor vehicle sales and use taxes (titling), and general sales and use taxes. In addition, assuming the repeal of the abusive driver fee program in this legislative session, another $390 million over the six-year period would be unavailable for maintenance.

Inflation also increases the pressure on VDOT’s construction and maintenance budgets. Higher prices for oil and petroleum products, steel, cement, and concrete are escalating at about $50 million per year or the equivalent of one penny on the gasoline tax.

Because maintenance is the highest funding priority, VDOT has been transferring dollars since FY02 from the new construction program to cover the shortfalls in the maintenance program. This fiscal year $261.0 million will be transferred from new construction. In FY09 and FY10, the governor’s budget (HB/SB 30) assumes transfers of almost $290 million in each year. This figure, however, does not include the loss of abusive driver fees, which would push the transfer to an even higher $350 million level.

Road construction is not the only program facing reductions. Transit funding will be cut some $13 million in FY09 and a total of $49 million during the next six years because of declining recordation taxes. And, revenues for the Rail Enhancement Fund, which depends on taxes applied to car rentals, are projected to be flat. Staff contact: Neal Menkes nmenkes@vml.org

Annexation legislation acted on by Counties, Cities and Towns Subcommittee

HB 508 (Hamilton) and HB 509 (Hamilton) are companion bills that end the moratorium on annexation, and require approval by two-thirds of the voters of the city and county involved in an annexation. Both bills were tabled by a Counties, Cities and Towns Subcommittee. The patron of the bills, Del. Phil Hamilton of Newport News, stated his real purpose for proposing the repeal: to restrict 599 funding to all cities, towns and counties that receive it. Originally, in the late 1970s, there was a connection between that funding and the loss of annexation authority. However, if 599 funding were to be discontinued or restricted today, it would mainly apply to cities that would have no ability to annex land even if the moratorium were lifted.

Only nine cities could annex if the moratorium were lifted: Buena Vista, Colonial Heights (as to Prince George County), Covington, Danville (as to Pittsylvania County), Emporia (as to Greensville County), Galax, Harrisonburg, Hopewell and Lexington. The two-thirds vote requirement would make a successful city-initiated annexation extremely unlikely. As a result, if the bills were to become law, no improvement in annexation authority would result, but all cities, many towns and some counties would be greatly harmed if 599 funding were to be limited or restricted. Staff contact: Mark Flynn (mflynn@vml.org).

Local authority bills fail to advance

SB 32 (Locke), which would have allowed a locality to adopt an ordinance that prohibits firearms, ammunition, or components or combinations thereof in libraries that are owned or operated by the locality, failed to be reported from Senate Local Government on Jan. 22. The committee also failed to report SB 33 (Locke) and SB 300 (Whipple). SB 33 would have allowed a locality to adopt an ordinance that prohibits firearms, ammunition, or components or combinations thereof at outdoor theaters, cabarets, carnivals, and fairs at which 500 or more persons are authorized to lawfully attend. SB 300 would have allowed a locality, by ordinance, to make it unlawful for any person to possess a dangerous weapon upon the property, including buildings and grounds thereof, of any facility that is owned or leased by that locality and used by it for governmental purposes. Staff contact: Kimberly Pollard (kpollard@vml.org).

Fewer bills introduced in 2008 session

Legislators appear to be exercising a little more restraint in the number of bills introduced in the 2008 session. The total bills and resolutions introduced so far is 2,376, as compared to 3,069 in 2007 and 3,287 in 2006. While the deadline for the introduction of legislation was Friday, Jan. 18, legislation can still be introduced by unanimous consent, and the Governor can send down bills at any time. In addition, memorial and commending resolutions are included in these totals, and these will be introduced throughout the session. Nonetheless, this appears to be a good trend.

The total legislation introduced may drop even further next session, if the House of Delegates sticks to the rule it adopted on Jan. 9 limiting delegates to introducing 10 bills in sessions in odd-numbered years.

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