January 30, 2008

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Senate Finance Committee 'carries over' local property tax legislation

The Senate Finance Committee voted to carry over until the 2009 session several bills affecting tax rates, assessment and tax bill notices, and the burden of proof for assessment increases.  SB 783, SB 779 and SB 789 were then referred to a special subcommittee.  Sen. Janet Howell, Sen. Edd Houck and Sen. John Watkins will comprise the subcommittee, and are charged to review the issues raised by the bills' patrons. Sen. Charles Colgan, chairman of the committee, made the motion to carry over the legislation. Staff contact: Neal Menkes (nmenkes@vml.org). 

Impact fee bill stripped of grantor's tax and referred to Senate Finance Committee

SB 768 (Watkins) is intended to eliminate cash proffers and to replace it with impact fees and a grantor's tax.  The Senate Local Government Committee removed the grantor's tax provision and sent it to the Senate Finance Committee.  The finance committee will not take up the bill until next week.  The primary issues will be whether the grantor's tax will be in or out, and whether the bill should advance to the floor, or be studied for a year.

As the bill was drafted before the committee hearing, the justification for it relied on revenues from both impact fees and the grantor's tax.  The bill's proponents showed evidence that in Chesterfield County, the tax would provide approximately 20 percent of the total revenue under the new system.  Therefore, when the committee removed the grantor's tax provision, the justification that it would protect revenues of local governments is lost.  Even with the tax, the bill appears to not keep localities whole on the revenue side.

VML continues to work with all the groups interested in the bill to ensure that the bill is workable, or, if it can't be worked out, carried over for a year.  VML continues to propose that the bill be carried over for a year so that the Homebuilders Association of Virginia, the Virginia Association of Realtors and local government can develop a workable new law. Staff contact: Mark Flynn (mflynn@vml.org).

Bills of interest in Commerce and Labor

HB 49 (Cole) would void any utility easement conveyed on or after July 1, 2008 if the easement has not been used by the twentieth anniversary of the easement. The code section in which this bill has been assigned defines "utility services" as any products, services and equipment related to energy, telecommunications, water and sewerage, therefore this bill would have a significant effect on future planning and development of localities.  This bill has been assigned to Subcommittee 3, which is chaired by Tim Hugo.

HB 532 (Mathieson) and SB 500 (Northam) are identical workers' compensation bills that would essentially make localities responsible for any disease contracted by an emergency services worker during a gubernatorial declared emergency. The reason the local government would be responsible is because the bill covers any environmental condition that results in death or disability which negates a locality's ability to do pre-employment testing for the disease.  Additionally, during a declared emergency, most emergency workers are exposed to the same environmental conditions as the general public. 

HB 1480 (Kilgore) and SB 673 (Wampler) are identical bills which would require localities to allow deputy sheriffs to use their accrued sick or vacation leave to supplement statutory workers' compensation benefits, so long as the total amount received by the deputy does not exceed 100 percent of the deputy's regular pay.  

Senate committee reports, refers homestead exemption resolution

The Senate Privileges and Elections Committee voted 9-3 to approve and refer to the Senate Finance Committee a constitutional amendment that authorizes the General Assembly to enact legislation that will allow localities by ordinance to exempt from real property taxes, or defer real property taxes on, up to 20 percent of the value of residential or farm property that is the owner-occupant's primary dwelling.  Representatives from business groups, the Virginia Education Association, and the Commonwealth Institute for Fiscal Analysis spoke against SJ 6 (Whipple).

Sen. Ralph Northam's bill -- SB 496 -- would implement the constitutional amendment, assuming that SJ 6 passes and that the voters approve the amendment this November.  SB 496 was approved by the Senate Finance Committee, and is now on the Senate floor.  Floor debate has been twice postponed.  Staff contact: Neal Menkes (nmenkes@vml.org) and Mary Jo Fields (mfields@vml.org)

Localities could get help collecting out-of-jurisdiction parking tickets

A House subcommittee moved forward legislation that would assist local governments in collecting delinquent parking citations from out-of-jurisdiction residents.  HB 133 (Ware, O.) and HB 786 (Brink) allow local Commissioners of Revenue, with agreement from the local Treasurer or Director of Finance, to refuse to issue or renew a vehicle registration to someone owing fees for parking tickets, regardless of where (in Virginia) the ticket was issued.  Presently, only the City of Richmond has that authority, and local governments must pursue prohibitively costly and time-consuming legal action to collect delinquent parking citations.  Staff contact: Denise Thompson (dthompson@vml.org)

Transportation subcommittee hears port budget proposals

The Port of Virginia brings in more than $41 billion in economic activity from port operations, plus $13.5 billion in wages and $1.2 billion in state and local taxes.  Port Authority director Jerry Bridges asked the Senate Finance Subcommittee on Transportation at its Jan. 29 meeting to ensure that the Virginia ports remain at the forefront of the global marketplace.  He outlined budget proposals from Gov. Tim Kaine, including a $93 million Terminal Revenue bond issue, and a $155 million Commonwealth Port Fund bond issue.  The governor also proposed $39 million in terminal equipment leases, which would be supported by terminal revenues.  The Port of Virginia includes ports located in Richmond, Norfolk, Portsmouth, and Newport News, and the inland port near Front Royal, on the Norfolk Southern rail line.  Virginia's major ports were consolidated into the Port of Virginia to develop and improve harbors and seaports, and promote shipment of cargo and commerce through Virginia's ports.   Bridges noted that aging terminal facilities, as well as congested and unreliable road and rail networks, hinder the movement of cargo and limit port growth. Staff contact: Denise Thompson (dthompson@vml.org).

School construction revolving loan program proposed

Three bills establishing a revolving loan program for school construction are proposed under HB 923 (Rust), SB 737 (Barker) and SB 780 (Blevins). The program is a private sector replication of the state wastewater revolving loan fund. State funding would be deposited in the program, which would make below-market rate loans for the construction of school buildings. Loan payments would replenish the fund. The funding would be in the appropriations act. The legislation proposes housing the program in the VML-VACo local government finance program, which currently offers a pool for bonds for various local projects. The House bill has been referred to the House Appropriations Subcommittee on Elementary and Secondary Education. The Senate bills are in the Senate Finance Committee. White paper on the bills (PDF).  VML supports the legislation contingent on the funding of the rebenchmarking of education funds. Staff contact: Mary Jo Fields (mfields@vml.org). 

Senate Finance Committee saying no to retirement increases

The Senate Finance Committee has signaled that increased retirement benefits for public employees would not take place this year. The committee failed to take action on a number of bills that would have increased benefits.  The sole benefit increase reported by the committee at the meeting was SB 624 (Stolle), which requires that enhanced retirement benefits be extended to jail superintendents and jail deputies.  Localities were required in the 2007 session to extend these enhanced benefits to sheriffs and deputies.  The fiscal impact on local governments is $1.5 million a year for those 5 regional jails which do not currently provide these benefits.  Staff contact: Mary Jo Fields (mfields@vml.org).

Law enforcement procedural guarantee bill still on Senate floor

The Senate passed by for the sixth day legislation to strengthen procedural guarantees for public safety officers.  It was announced on the senate floor that there is a substitute bill as well as floor amendments. SB 76 (Cuccinelli) strengthens the protections afforded to law enforcement officers during internal investigations, questioning and disciplinary hearings. The bill requires a 24-hour notice to an officer prior to questioning, allows officers the right to an attorney during the hearing, and allows officers the opportunity to review their investigation files. The bill allows for the deletion of names and identifying information from the file prior to review in cases where retaliatory action is possible. The bill would not apply to criminal investigations. The Virginia Association of Chiefs of Police, VML and VACo oppose the bill.

Talking points for opposing the bill in its current form:

• The procedures currently in place protect law enforcement officers from arbitrary and unreasonable disciplinary action, and abusive administrative investigations.
• The bill improperly restricts and interferes with the efficient operation of law enforcement agencies.
• The bill specifies that a law enforcement officer cannot be questioned without his or her counsel being present.  Under this language, if an officer did not have counsel, he could not be questioned.

Please call or email your senator in opposition to SB 76.  The fact that the bill continues to be passed by for the day indicates that your phone calls and emails have been influential.

As it is drafted, SB 76 does not apply to deputy sheriffs; however, HB 100 (Poisson) adds deputy sheriffs to the groups of employees covered by the Act.  This bill is opposed by the Virginia Sheriff's Association and by local governments.  Staff contact: Kimberly Pollard (kpollard@vml.org).