eNews Apr 7, 2017

Friday, April 07, 2017 - 01:00pm

General Assembly Update: The reconvened session

General Assembly members came back to Richmond this week to discuss the Governor’s vetoes and proposed amendments to various bills including the budget.  This article summarizes the veto session; please see the March issue of Virginia Town & City for the longer overview on the entire session.

Opponents could not muster the necessary two-thirds majority vote in the House and Senate to override the Governor’s vetoes, giving the Governor an unblemished record with all of his vetoes having been sustained since the 2014 legislative session.

The General Assembly rejected recommendations of the Governor, in whole or in part, to 20 bills and rejected 13 budget amendments in whole or in part.  These bills will now return to the Governor who will have 30 days to either sign or veto the legislation.  Bills not acted upon within the 30 days become law without the Governor’s signature.

Budget

Of the multiple budget amendments McAuliffe submitted, about half prevailed, and most of those were technical or administrative in nature.  Policy amendments like the one to restore language providing authority to the Governor to expand Medicaid pursuant to Obamacare failed, as did spending cuts to the Jamestown-Yorktown Commemoration 2019 and spending restorations for items like solar energy development.

Budget amendments of interest to local governments enjoyed mixed success.  The legislature rejected the $442,500 to reimburse selected local and regional jails for providing mental health assessments within 72 hours of the completion of an initial mental health screening.  But, the $655,000 proposed for the Department of Elections to educate voters and to replace expired federal funding for agency operations did prevail.

The Budget Bill (HB 1500) will be returned to Gov. McAuliffe, and will take effect upon his signature.

 

Child day program amendments rejected

The Senate accepted, but the House rejected, the Governor’s amendments to SB 1239 (Hanger) which addresses various child-based programs, including day care centers operated by religious organizations, after-school programs offered by public and private schools, as well local parks and recreation programs.  The bill will now return to the Governor, who can decide whether to sign it, let it go into effect without his signature, or veto it.

Local parks and recreation agencies were not pleased with the bill as it came out of a General Assembly conference committee in the final hours of the session, and were not satisfied with the Governor’s amendments to the bill because it did not address their concerns with state social services reporting requirements and potential oversight.  If the Governor vetoes the bill, the DSS oversight provisions will go away.  If he allows the bill to become law, there is time for further work on items addressed by the bill because it was passed with a delayed enactment date of July 1, 2018, and included enactment clauses that made some of the provisions contingent upon state funding and approval of state regulations.

 

Freedom of Information Act – A mixed bag

HB1539 is a Freedom of Information Act bill regarding records of public bodies.  The Governors recommendation was adopted regarding the definition of “working papers” which will now read: “Further, information publicly available or not otherwise subject to an exclusion under this chapter or other provision of law that has been aggregated, combined, or changed in format without substantive analysis or revision shall not be deemed working papers.” 

SB1102 was a bill regarding the release of records in unattended deaths after the investigations were completed.  The original bill required release of the police records to immediate family where the immediate family member was not going to be charged in connection with the death.  All parties agreed to two minor amendments that clarify things in the bill.  The Governor also recommended only releasing a summary of the police record, but this amendment was rejected.

 

Conflict of Interests Act

HB1854 and SB1312 are the Conflict of Interests Act bills that address 28 proposals from the Conflict of Interest and Ethics Advisory Council.  The Governor’s recommendation for both bills was to add a paragraph regarding legislators’ personal interest in contracts with state or local government agencies and the required disclosures.  Not surprisingly, this was rejected.

 

Three restitution/fines-type bills tinkered with

SB1284 deals with Court-ordered restitution, enforcement and non-compliance.  The bill as passed requires the court or the clerk to complete a restitution form at the time of sentencing, provides for docketing a judgment if unpaid and requires local circuit court clerks to submit quarterly reports to the attorney for the Commonwealth and probation agencies.  As passed, the bill also amends Code Sections §19.2-354 and §19.2-358, which deal with the ability of a court to fine a person for nonpayment. The General Assembly approved a substitute bill by Governor McAuliffe to remove the fine, leaving only the ability to imprison.

SB1285 dealt with restitution and probation.  As passed, a convicted person required to pay restitution must be placed on indefinite probation.  The legislation adds guidance on how to end or amend probation and restitution as well.  Legislators rejected amendments by the Governor to have the bill apply only in the 16^th Judicial Circuit (Albemarle, Culpeper, Fluvanna, Goochland, Greene, Louisa, Madison, Orange), that the legislation expires July 1, 2019, and have the Virginia State Crime Commission monitor and report to the General Assembly on the implementation.

SB854 is related to unpaid court fines.  The bill as passed allowed for longer time periods before creating payment plans as well as adding a code section that outlines deferred or installment payment agreements.  The Governor’s recommendations tinker with the time periods and the threshold amounts in the payment plans.  For example, the bill adopted during the session offered a payment agreement after 90 days; the end result with the Governor’s amendment is 30 days. The down payment was originally 20% and, as finalized, is 10%.  The bill is very technical in nature, so be aware of all the timelines and look for the Executive Secretary of the Supreme Court to promulgate a form that will help assess the defendant’s ability to pay.

 

Procurement

HB2017 authorizes localities to waive bid and performance bonds for non-transportation-related construction contracts.  The bill that passed the General Assembly allowed bid bonds to be waived for a current Class A Contractor if there was a written determination by the locality, less than 10 nontransportation-related construction contracts per year with a waiver, and the contract was in excess of $100,000 but less than $300,000.  For performance bonds, the amounts were the same.  The General Assembly approved a gubernatorial amendment to take out the “non-transportation-related” restriction.

 

Fire Programs Fund

HB1532 increases the share of moneys in the Fire Programs Fund that would be allocated to localities for improvement of fire services.  The bill already had a delayed effective date of January 1, 2018, but the Governor proposed and the General Assembly agreed to add a reenactment clause, meaning the General Assembly will have to take up the issue again in the 2018 Session.

 

Local collection fees bill amendment

HB2442 provides that an ordinance for collection of overdue accounts may also provide for the imposition of collection and imposition of fees, not to exceed those allowed for collection of delinquent taxes.  The House did not act on a gubernatorial amendment, so the Governor now can sign the bill as passed originally by the General Assembly, not sign it and have it become law without his signature, or veto it.

 

Wireless infrastructure

SB1282 had some proposed changes to it affecting the Virginia Department of Transportation (VDOT).  The General Assembly rejected only one of the proposed changes and that was a grandfathering clause for contracts or permits that VDOT had allowing use of the right-of-way.

 

GO Virginia Conference to be held in April

A GO Virginia orientation conference is planned for April 20, 9:00 a.m. – 3:00 p.m. in Richmond. 

GO Virginia enjoys bipartisan support within the General Assembly.  The program’s purpose is to help to grow and diversify Virginia’s economy and create jobs through state financial incentives for regional projects that encourage collaboration between private sector companies, workforce, education and government in each of the nine regions set up across the Commonwealth.  This is an excellent opportunity for local elected officials, chief administrative officers and economic development officials to learn more about the purpose, objectives and workings of the statewide initiative.

 

The Virginia Code Commission reviews county/city-shared courthouses

The Code Commission met on Tuesday of this week and had a very lively discussion about the location of county/city-shared courthouses.  Back in 1997, the Code Commission recommended and the General Assembly approved the repeal of Title 14.1 and Title 17 and the revision of Title 17.1 (Courts of Record). Most of the provisions of Title 14.1 (Costs, Fees, Salaries and Allowances) were moved to the new Title 17.1, but some sections were moved to Titles 2.1 and 15.2.  Further, there were 10 sections of the code in Title 17 that were designated “not set out” in the code because of their limited scope and purpose.  Sections that are not set out in the Code can be difficult to locate as they appear only in the Acts of the Assembly.

This week, in an effort to be more transparent, the Code Commission decided that the applicable sections that were not set out in 1997 be put back into the Code.  Some of the sections, however, are no longer relevant and are recommended to be appealed. The sections that will be added in are:  §§17-126.2, 17-126.3, 17-126.4, 17-126.5, 17-126.6. SECTIONS NOT SET OUT IN TITLE 17

The Code Commission also spent time looking at the same issue in Title 16.1 (Courts Not of Record) and agreed to add into the code sections:  §§16.1-69.2, 16.1-69.3, 16.1-69.4, 16.1-69.7:1, 16.1-69.35:1.  SECTIONS NOT SET OUT IN TITLE 16

Virginia Code Section 18.2-497.1 is entitled “Fleeing from a law enforcement officer; penalty;” while 18.2-460 is entitled “Obstructing justice; resisting arrest; penalty.” Both titles were drafted by staff of the Division of Legislative Services and are not part of the code.  House Courts of Justice Chairman David B. Albo requested that the words “resisting arrest” be removed from §18.2-497.1 and added to §18.2-460.  This was agreed to with a caveat that the content of these statutes be reviewed by House Courts to determine if they need to be reviewed by the Crime Commission.

VML contact: Michelle Gowdy, mgowdy@vml.org

 

Wireless infrastructure group sets deadline for draft legislation

The Wireless Infrastructure Work Group also met on Tuesday.  Senator Ryan McDougle led the discussion of where this group would concentrate its efforts this year.  He set a deadline of September 20 for the group to have draft consensus legislation that deals with new wireless infrastructure.  While VML and VACo emphasized the need to expanded service in underserved and unserved areas, it was very clear that this group would cover the entire state.  There is going to be a website created for this group so that the documents can be found in a single location. It will be listed on the Studies Home Page. 

VML contact: Michelle Gowdy, mgowdy@vml.org

 

Employment data supports low-growth scenario

Virginia employers added 11,400 jobs in February with the education and health service industry accounting for almost half of the increase.

On a year-over-year basis, total employment rose from February of last year to this year by 1.4 percent.  The education and health service saw the largest percentage increase of 2.8 percent.  Professional and business services added the most jobs during this same period – 16,100.

The good news is somewhat tempered by a Bureau of Labor Statistics report containing the final 2016 payroll employment data.  The report shows that the December 2016 estimate of total employment was adjusted down by 15,400 jobs.  The industries with the largest downward revisions include trade, transportation, and utilities; professional and business services; and “other” services.

As might be expected, job growth is not evenly distributed across the Commonwealth.  This chart from the Federal Reserve Bank of Richmond identifies those parts of the state where growth is either above or below the 1.4 percent growth rate through February 2017.

One question to be answered over the coming months is if payroll growth can be maintained in light of rising interest rates, federal budget actions, and other variables.  Another question is how this economic activity will influence local budgets.

VML contact: Neal Menkes, nmenkes@vml.org

 

Transit Capital Revenue Task Force moves ahead

August in Richmond is a hot and sticky time.  There may be some relief, however, if not from the weather, then perhaps from the impending funding crisis awaiting transit capital funding.

August 1 is the deadline for submitting the final report to the General Assembly as required under HB 1359.  The legislation requires the state to examine the effects of the loss of state transit capital funds and identify additional sources of revenue.

The task force created by the legislation is charged with identifying potential revenue sources to address transit capital funding needs and evaluating the revenue sources.  A report presented to the Transit Service Delivery Advisory Committee on March 31 focused on 77 revenue options, examining revenue potential, stability and predictability, the nexus with transit, administrative costs, and fairness across income levels.

After screening, the most appropriate 18 sources (below) were selected for assessment.

Source	Potential	Keeps Pace with Inflation	Fairness	Nexus	Stability & Predictability	Admin. Costs
Retail Sales and Use	•	•	#	½	½	•
Communication Sales Tax	•	#	½	½	•	•
Motor Vehicle Sales Tax	½	•	½	½	½	•
Motor Vehicle License Fee	•	½	#	½	•	•
Motor Fuels Sales Tax	•	#	#	½	#	•
Motor Vehicle Rentals Tax	#	#	½	#	#	•
Drivers License Fee	½	#	#	½	•	•
Tolls	½	½	#	#	½	½
Tax on Auto Repair Labor	•	•	½	½	½	½
Property Tax	•	#	½	#	½	•
C&I Property Tax	•	½	½	½	#	•
Recordation Tax	#	½	½	½	#	•
Real Estate Transfer Tax	#	½	½	#	#	•
Hospitality Tax	½	•	•	#	#	½
Personal Income Tax	•	•	•	#	#	•
Insurance Premium Tax	•	•	½	#	½	•
Utility Bill Fee	½	½	#	#	•	½
Tobacco/Cigarette Tax	•	#	½	#	½	•
Symbols:  •=High; ½=Medium; #=Low

Concerning next steps, the Commonwealth Transportation Board (CTB) will be briefed on the possible revenue sources at its June meeting.  A resolution for concurrence will be considered at the July 19 CTB meeting.

VML contact: Neal Menkes, nmenkes@vml.org

 

Congress faces deadline to keep the government open

April 28 is the deadline to pass legislation to fund the federal government through the end of the federal fiscal year in September, but the House and Senate have spent considerable time occupied by other matters, including the health care debate and approval of the President’s cabinet nominees.

The challenge to complete the task is further complicated by Congress’s upcoming two-week spring vacation and the fact that there is no political pathway for an agreement.  The maneuvering between House leadership and the conservative faction within the Republican caucus also adds several degrees of difficulty in getting a package done in time.  And, the Democrats are not happy with President Trump’s demands to appropriate $30.0 billion in emergency defense spending, to cut some $18.0 billion in non-defense spending, and to place a “down payment” for the border wall with Mexico. 

Of course, this may all seem simple when compared to the issues that are already lining up, including putting together next year’s budget, coming up with a plan to pay for infrastructure, raising the debt ceiling, and passing a tax reform bill.

Stay tuned.

VML contact: Neal Menkes, nmenkes@vml.org

Line of Duty Act information distributed

The Virginia Retirement System last week distributed information on the changes to the Line of Duty Act (LODA) benefits, eligibility and administration that become effective July 1, 2017.

Effective July 1, 2017:

• The Virginia Retirement System (VRS) will make all LODA eligibility determinations and issue benefit payments for employers that participate in the VRS-administered LODA Fund.
• The Department of Human Resource Management (DHRM) will administer LODA Health Benefits Plans for all eligible LODA recipients to provide consistent coverage.

Communications to participants and employers

DHRM this week mailed an information booklet to current LODA health plan participants, which included a summary of the new health benefits program and instructions for transitioning to the new plans. The fiscal impact on localities will vary, depending on the cost of current premiums for individual local programs and the cost of participating in the statewide LODA health plan.

For additional information about DHRM’s administration of the LODA Health Benefits Plans, please visit DHRM’s LODA website. Be sure to note the FAQs that are available.

Please refer to the VRS LODA Transition Overview for information about upcoming changes to eligibility requirements and benefits.

Questions about issues falling under VRS’s purview should be directed to LODA@varetire.org.

VML contact: Mary Jo Fields, mfields@vml.org