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eNews Feb. 15, 2019

Friday, February 15, 2019 - 04:27pm

 

In this issue:

  • Action Alert: Last chance to weigh in on parking fines bill
  • Action Alert: Keep personal property tax relief for veterans a local option
  • Action Alert: Budget issues of concern
  • Positive outcomes for several bills
  • Budget conferees begin work
  • Update on motorized scooters bill
  • Wastewater bill advances
  • Bills with fiscal impacts that failed this week
  • School calendar bill passes
  • Parks & Rec program bill headed to Finance Committee
  • Other bills of interest moving through the legislature
  • Redistricting updates in the Courts, General Assembly
  • Status of other bills that VML has been closely following
  • Status of other bills of interest that VML is following

 

Last call to weigh in on bills dealing with parking enforcement and parking fines

Readers of eNews have seen in earlier editions information on HB1818 (Delaney) and SB1044 (Black).  These bills as introduced would have authorized counties and towns with a population of at least 40,000 to do something cities can already do—contract out parking enforcement (writing parking tickets) to private firms.  Unfortunately, the Senate has tried to add a provision to the bills which would impose a maximum fine of $75 for any parking ticket.  While most parking fines are far lower than $75, a few are not (e.g., parking in a fire lane).  These bills will now go to a conference committee to decide what to do with the attempt to set a maximum fine.

Action

If you have not already done so, please contact your senators and delegates and ask them to oppose the maximum fine provision.

Talking points

  • If the cap stays in, localities that have fines that are more $75 for those more serious offenses will have to reduce them.
  • The result may be an increase in violations and an increase in the threat to public safety due to more violations involving parking in a fire lane or similar infractions.

VML Contact: Bernie Caton, bcaton@vml.org

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Help keep personal property tax relief for disabled veterans a local option

HJ676 and SJ278 would amend the Constitution of Virginia to provide a personal property tax exemption for one motor vehicle (automobile or pickup truck) owned by a disabled veteran or spouse.

As passed by the House of Delegates, HJ676 authorizes the General Assembly to provide any county, city or town the discretionary power to exempt the car tax for veterans who have a 100% service-connected, permanent, and total disability.

The Senate proposal imposes a mandatory tax exemption.

VML opposes the mandate set out in SJ278.

Action

We urge you to call your Delegates and Senators to support the local option offered by HJ676 and to oppose another unfunded mandate on localities as proscribed by SJ278.

Talking Points

  • Personal property taxes are local revenues. Local elected officials are responsible for imposing these taxes and local citizens hold their councils and boards of supervisors accountable for actions taken on local taxes;
  • The state constitution specifically assigns tangible personal property as subject to local taxation. The General Assembly’s past constitutional amendments that exempted disabled veterans and surviving spouses of soldiers killed in action from real property taxes cost local governments over $50 million in Tax Year 2018, according to a survey done by the Commissioners of the Revenue.
  • The General Assembly should not trespass on local tax authority. The General Assembly has a greater fiscal capacity than localities and can craft an income tax relief program for these veterans and their families without commandeering local revenues.

VML Contact: Neal Menkes, nmenkes@vml.org

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Budget issues of concern: Action items listed below

Machinery and Tools Tax:

The Senate included budget language (Item 255 #1s) directing the Secretary of Finance to convene a work group of interested parties for the purpose of presenting a legislative plan and budget for next year’s Session that would require all localities to assess a “zero” rate on a manufacturer’s machinery and tools for the first five years the equipment is put into service. Reimbursements up to $50 million to local governments would be provided from Internet sales tax collections. The result would be another “car tax relief” program with localities stranded in the budget wilderness when (and not if) the Commonwealth reprograms the reimbursement dollars for state programs in the next economic downturn. The House did not include the language in its budget package. VML recommends that members contact their state senators to ask them to drop the amendment.

Communications Sales and Use Tax Trust Fund:

Both the House and Senate budget packages include amendments (Item 3-1.01 #1s and Item 3-1.01 #6h) to strip $2 million in FY20 from the Communications Sales and Use Tax Trust Fund. The money would be transferred to the state general fund. In last year’s Session, the General Assembly confiscated $2.0 million in each year of the biennium.  The Introduced Budget restored the funding slated for the second-year grab. The General Assembly is choosing to continue the transfer. This tax came about to reimburse localities when the state exercised its Dillon Rule powers in 2006 and repealed local authority to impose taxes on telecommunications providers. VML recommends that members tell their senators and delegates to restore the $2 million to the Trust Fund. The funds should be allocated to local governments.

Stormwater Local Assistance Fund:

The Introduced Budget enhanced funding for the Stormwater Local Assistance Fund (SLAF) but neither the House nor the Senate chose to support the proposal (Item 368 #1h) (Item 368 #1s). While the House budget amendment eliminated the $50 million proposed in FY20, the Senate simply evaporated the proposed funding by $40 million, leaving $10 million for SLAF.  Given the enormous challenges in managing stormwater runoff, VML urges members to support the Senate amendment in budget conference.

Community Services Boards (CSBs):

The budget passed last year reduced general fund support for CSBs; it assumed that the general fund dollars ($11.1 million in FY19 and $25 million in FY20) will be made up from federal Medicaid dollars related to last years’ General Assembly decision to expand the Medicaid program. The Introduced Budget Bill includes language and special fund balances that could be made available to individual CSBs in circumstances where the Medicaid reimbursements fail to meet at least 90% of the general fund reductions in FY19 after the close of the fiscal year. The Senate amendment (Item 310 #2s) would distribute financial assistance before the end of the fiscal year in order to preserve critical services without disruption. The amendment also requires the Department of Behavioral Health and Development Services to compare the value of the general fund cuts with the Medicaid reimbursements and to report budget shortfalls and other findings to the General Assembly for consideration in the 2020 legislative session.  VML asks members to voice their support for the Senate amendment.

VML will continue to update members on the above items as information on the budget conference unfolds.

VML Contact: Neal Menkes, nmenkes@vml.org

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Your voice was heard! Positive outcomes for several bills of concern

Thank you for weighing in!

Senator Obenshain agreed to some very good amendments to SB1431 and the bill as amended was reported from the House General Laws Committee on Feb. 14. Originally the bill required local officials to complete online FOIA training through the FOIA Council once every two years while in office and within two months of being elected. The amendment accepted by Senator Obenshain and the House committee allows the local government attorney to provide the necessary training. Further, another amendment removed the penalty for failing to take the training that was included in the original bill. The other major part of the bill, which was in the original version and was not amended, eliminates the three-day notice requirement for an expedited hearing on a petition for mandamus or injunction.

SB1554 (Surovell), another FOIA bill, was substantially amended by committee to delete the section that dealt with closed meetings. In its current form, therefore, the bill applies to records. It allows (not requires) the court to add an additional penalty if a person fails to provide public records because the person altered or destroyed the record with the intent to avoid the provisions of FOIA.

Thanks to all who called and wrote about the “checkbook” bill – SB1262 (Sturtevant). House Counties, Cities and Towns Subcommittee #1 recommended that the bill be passed by indefinitely. This bill would have resulted in an unfunded mandate requiring every locality with a population greater than 25,000 and every school division with more than 5,000 students to post on their website a register of all funds expended in a specified format, including the vendor name, date of payment, amount and a description of the type of expense. HB1907 (VanValkenburg) met the same fate earlier in the same committee.

House Counties, Cities and Towns Subcommittee #2 recommended that SB1701 (Ebbin) be passed by indefinitely. The bill would have undermined the authority of Fairfax County to regulate short-term rentals. While the bill applied only to Fairfax County, it would have set a dangerous precedent.

And, as a reminder, HB2640 died on the House floor on Feb. 4. The bill would have changed the assessment process for manufacturing equipment.

VML Contacts: Michelle Gowdy, mgowdy@vml.org; Neal Menkes, nmenkes@vml.org

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Budget conferees will have to pick up the pace to make February 23 final adjournment deadline

The House and Senate budget conferees were appointed earlier this week and informal talks among the senior legislators have already begun. The unanswered question: can they bridge their differences in time to provide a 48-hour review period for delegates and senators to study the budget compromise before voting?

Unlike last year’s budget conference, which centered on whether to embrace Medicaid Expansion or to reject it, this year’s conference is less likely to bog down on a similar “philosophical” issue. Instead, the focus this year is more on budget priorities and the personalities pushing additional spending or spending cuts. As such, compromise may turn out to be the most important factor in this year’s budget negotiations.

Time to get educated

Funding elementary and secondary education appears to be the biggest conference obstacle.

 

 

Issue/Amendment Item

 

House Biennial Amendment

Senate Biennial Amendment
Back-fill Expired Federal VPI Grant (Item 136 #3h) (Item 136 #3s) ($9,678,780) ($2,416,506)
Maintain FY20 Increase for Supplemental At-Risk Add-on (Item 136 #10h) and (Item 136 #4s) ($35,613,626) ($14,241,528)
Supplemental Lottery Per Pupil Allocation (Item 136 #11h) and (Item 136 #10s) $27,442,009 ($34,691,509)
Literary Fund School Construction Interest Rate Subsidy (Item 136 #8s) (Item 136 #7h) ($80,000,000) ($10,000,000)
School Counselor Ratio (Item 136 #2s) No change from Introduced bill ($25,978,056)
Teacher Salaries (Item 136 #14h) (Item 136 #1s) $43,828,883 Language amendment
LCI Calculations to be based on Land-Use Value

(Item 136 #7s)

No House amendment Language amendment effective FY21
  • The Introduced Budget included $9.7 million to backfill an expiring federal grant for preschool programs (VPI) serving some 13,000 four-year-old children living in low-income households. Thirteen school districts are affected across the state, including rural, inner-city, and suburban localities. The House took all the money, and the Senate reduced the proposed spending by roughly 25%.
  • The Introduced Budget Bill included a $35 million increase in state supplemental aid to school divisions with high concentrations of poverty (based on students eligible for free lunch). The House eliminated the proposed increase, moving the dollars to a different supplemental funding program in which the distribution formula emphasizes pupil enrollment rather than poverty. The Senate chose to retain some 60% percent of the proposed funding.
  • The House’s $27.4 million initiative for the Lottery Per Pupil Allocation boosts local flexibility in that the use of the lottery money is determined at the local level. The Senate amendment drops the spending amount to the level approved last year by the General Assembly with 38% of the lottery money targeted to the Lottery Per Pupil Allocation and the rest going to other education programs funded by lottery revenues.
  • The Introduced Budget Bill proposed $80 million in state general fund dollars for school employee retirement in order to free up a like amount of Literary Fund dollars for school construction loans. The House eliminated the fund switch while the Senate reduced the initiative for school construction support by $10 million.
  • The Introduced Budget provided $36 million for more school counselors to better manage caseloads. The House retained the funding while the Senate shrunk the initiative by over 70%.
  • Both the House and Senate accepted the idea to improve teacher salaries but chose different approaches. The House chose to reduce the $87.6 million in the Introduced Budget Bill by roughly 50%, changing the starting date of the 2% salary increase from July 1, 2019 to January 1, 2020. The House did include budget language allowing school divisions to provide a partial increase between 3% and 5% and still receive state matching dollars. The Senate amendment retained the $87.6 million and added the matching flexibility language.

VML Contact: Neal Menkes

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Update on motorized scooters bill

HB2752 (Pillion) authorizes localities to regulate the operation of companies that rent scooters or motorized skateboards. The bill has passed the House and has been approved unanimously by the Senate Transportation Committee. The only remaining action awaiting the bill is approval by the full Senate—which will likely occur early next week.

VML Contact: Bernie Caton, bcaton@vml.org

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Helpful bill to allow grants for wastewater conveyance structures advances

HB1822 (Bulova) could be a big help to many smaller communities with wastewater treatment plants.  It authorizes the Department of Environmental Quality to award grants to small sewage treatment plants so that the facilities can pipe their partially treated sewage to a larger plant for advanced treatment (such as nutrient removal). The bill has passed the House and was approved unanimously by the Senate Agriculture, Conservation and Natural Resources Committee.  It will go to the full Senate for likely approval next week.

VML Contact: Bernie Caton, bcaton@vml.org

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Bills with fiscal impacts that failed this week

Many Senate bills were referred to House Appropriations and its subcommittees this past week, and very few emerged.  No matter how good the bill, any hint of a state fiscal impact sealed its fate.  Here are some good bills that did not make it out of Appropriations subcommittees this week:

SB1040 (Peake), which would have provided that local jails be compensated for the actual cost of incarceration rather than as provided for in the Appropriations Act.

SB1104 (Peake), which would have allowed community policy and management teams (CPMTs) to use existing wrap-around services funding for services in a public-school setting to help maintain children in their local school settings and help prevent higher cost (and sometimes distant) private school placements.

SB1576 (Suetterlein), which would have created pilot programs in up to eight school divisions to identify resources and study the feasibility of transitioning children in private special education placements back to their local school divisions using identified resources and supports.

SB999 (Stanley), which would have created the Virginia Grocery Investment Program and fund to promote construction, rehabilitation, equipment upgrades or expansion of grocery stores and small food retailers or projects in underserved communities.

VML Contact: Janet Areson, jareson@vml.org

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School calendar bill passes through the General Assembly

Both the House and Senate have now passed SB1005 (Chase), giving local school boards the option to start the school year up to two weeks before Labor Day without a good-cause waiver from the Virginia Department of Education. Importantly, the new legislation will not impact the start date of any school district that has received a good-cause waiver for the 2018-2019 school year. This grandfather clause will allow any district that currently begins its calendar more than two weeks before Labor Day to continue to do so. However, moving forward, any school district that operates under an early calendar will be required to include a four-day Labor Day weekend (Friday through Monday). SB1005 will go into effect beginning July 1, 2019.

VML Contact: Jessica Ackerman, jackerman@vml.org

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Parks & Rec program bill headed to Finance Committee

Senate Rehabilitation and Social Services reported and referred to Senate Finance HB 2280 (Head), which would remove local parks and recreation programs for school-age children and before- and after-school programs run by public schools for school age children from certain new requirements under the Virginia Department of Social Services.  VML supports the bill.

VML Contact: Janet Areson, jareson@vml.org

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Other bills of interest moving through the legislature

Outdoor smoking: The House General Laws Committee reported on Feb. 14 what may be the first bill to pass to regulate outdoor smoking. SB1304 (Edwards) authorizes localities to designate reasonable no-smoking areas within an outdoor amphitheater or concert venue owned by the locality via local ordinance.  The bill requires adequate signage and caps the civil penalty at not more than $25.

Audits: HB1866 (Peace) requires that a locality that is late in completing a required annual audit will have to post on its website a statement that the required audit is pending, the reasons for the delay, and the estimated date of completion. The statements also have to be made available to the public at the next scheduled meeting of the local governing body.  The bill further requires that any town with a population of less than 3,500 that voluntarily has an audit prepared must submit a copy to the Auditor of Public Accounts. The bill is on the Senate floor. SB1312 (Hanger) simply requires that towns that voluntarily have an audit send copies to the APA. SB1312 was reported by a House committee on Feb. 15.

Building code: The Senate General Laws and Technology Committee adopted amendments to HB1966 (Yancey) and the bill has passed the full Senate. The bill deals with the Uniform Statewide Building Code and provides that if there is a denial of the issuance of a building permit, the applicant must be provided with a written explanation of the reasons and the building department is encouraged (but not required) to limit its review of the revised application to only those portions deemed inadequate. The version of the bill that left the House provided that the fees associated with the review had to stay with the building department, but the Senate amendment provides an exception for the fees that currently would be going to the state in support of the Building Code Academy.

Broadband: HB2141 (Thomas) adds broadband to the list of activities for which localities could create service districts. As passed by the House, localities could contract with a broadband service provider to construct, maintain, and own communications facilities to facilitate delivery of last-mile broadband services to unserved areas of the service district. The locality would have to document that less than 10% of residential and commercial units within the area were capable of receiving broadband service at the time the construction project was approved by the locality. The Senate narrowed the bill, adopting amendments that specify that the locality can only contract with private broadband service providers. Furthermore, language was adopted to define an “unserved area” as an area in which (i) broadband download speeds of 10 MBps or more, or upload speeds of 1 MBps or more, are not generally available or (ii) less than 10 percent of residential and commercial units are capable of receiving broadband service, provided that the Department of Housing and Community Development may increase such percentage by regulation.

VML Contact: Michelle Gowdy, mgowdy@vml.org

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Redistricting updates in the Courts, General Assembly

On a 2-1 vote Thursday, the Fourth District Court ordered the state to adopt the redrawn electoral map for the House of Delegates that has been presented by its third-party special master. The final map, which changes the boundaries of 26 districts across Virginia, is projected by the Virginia Public Access Project to significantly impact the political leanings of some key districts, including that of House Speaker Kirk Cox. House Republicans have argued that the map is intentionally designed to benefit Democrats, and they will continue to await a decision from the U.S. Supreme Court regarding Speaker Cox’s standing to appeal the Fourth District’s 2018 ruling. In the meantime, the Virginia Department of Elections has announced that it is working with local general registrars to implement the new map immediately.

In the General Assembly, the House and Senate have each conformed the other body’s redistricting resolution to its own version, putting the discussion on track to move HJ615 (Cole) and SJ306 (Barker) into a conference committee. The appointment of conferees to represent each body is expected early next week.

VML will send a follow-up action alert once the appointments are announced to urge members to contact those offices and support the removal of any requirements for localities. It will be helpful if members contact their delegates and senators on the issue.

VML Contact: Jessica Ackerman, jackerman@vml.org

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Status of other bills that VML has been closely following

Number / Sponsor Description Status
HB1838 (Marshall) Virginia Regional Industrial Facilities Act; revenue sharing; composite index Senate: Rereferred to Finance
HB1966 (Yancey) Uniform Statewide Building Code; issuance of building permits Senate: Passed Senate with amendments (40-Y 0-N).
HB2375 (Roem) Adoption of zoning ordinance On the Senate floor for final passage
HB2549 (Jones) Cluster zoning; density calculation; the Senate adopted language that requires that the bill be reenacted in the 2020 session. On the Senate floor for final passage
SB1336 (Edwards) Mechanics’ liens; notice of sale House: Courts of Justice Subcommittee recommends reporting (8-Y 0-N)
SB1369 (Norment) VPPA; statute of limitations on construction contracts; statute of limitations on actions on performance bonds. House: Referred to Committee for Courts of Justice

 

A similar bill (HB1667–Kilgore) died in the House earlier this session.

SB1403 (Petersen) Eminent Domain; costs House: Subcommittee recommends reporting with amendments (8-Y 0-N)
SB1404 (Petersen) Eminent Domain; costs for petition for distribution of funds; interest rate; recordation of certificate House: Subcommittee recommends reporting with amendments (8-Y 0-N)
SB1421 (Obenshain) Eminent Domain; entry upon private property; calculation of just compensation; damages House: Subcommittee recommends reporting with amendments (8-Y 0-N)
SB1430 (Obenshain) Conflict of Interest; duties of the Virginia Conflict of Interest and Ethics Advisory Council; training requirement; inquiries from citizens House: Courts of Justice Subcommittee recommends reporting (6-Y 2-N)
SB1701 (Ebbin) Regulation of short-term rentals; urban county executive form of government House: Subcommittee recommends passing by indefinitely (5-Y 3-N)
SB1759 (Surovell) Undergrounding utility lines pilot program; transportation infrastructure improvement; urban county executive form of government House: Reported from Commerce and Labor with amendments (20-Y 1-N)
SB1102 (Peake) Congressional and legislative district boundaries; alignment with boundaries of counties & cities Died in committee

VML Contact: Michelle Gowdy, mgowdy@vml.org

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Status of other bills of interest that VML is following

Number / Sponsor Description Status

Land Use; Stormwater Management

HB1614  (Cole) / SB1248 (Reeves) Local Stormwater Management Fund; grant moneys HB1614 has passed both houses; SB1248 is poised to pass House
HB2755 (Fariss) Conservation easements; comprehensive plan Senate: Reported from Agriculture, Conservation and Natural Resources with amendment (13-Y 0-N)
HB2686 (Knight) Board of zoning appeals; vote requirement Senate: Reported from Local Government (10-Y 1-N)
HB2310 (Hayes) Local flood plain regulation Senate: Reported from Local Government with amendment (10-Y 3-N)
HB2229 (Bagby) Affordable housing; waiver of fees  Senate: Passed Senate (40-Y 0-N)
HB2342 (Thomas) Conditional rezoning proffers Senate: Reported from Local Government (11-Y 1-N)
SB1373 (Favola) Conditional rezoning proffers Passed both houses
HB1649 (Fowler)/ SB1594 (Dunnavant) Boundary agreement, local; locality allowed to attach to their petitions to circuit court a GIS map HB1649 passed Senate with amendment; SB1594 has passed both houses
SB1479 (Deeds) Regulation of development in karst (similar House bill died in House committee) House: House CC&T Subcommittee recommends reporting with amendments (5-Y 3-N)
HB1913 (Bulova) Subdivision ordinance; sidewalks Senate: Reported from Local Government (12-Y 0-N)
SB1663 (Barker) Subdivision ordinance; sidewalks Passed both houses
SB1699 (Peake) Subdivision and zoning; sidewalks House: Passed by indefinitely in Counties, Cities and Towns (21-Y 0-N)
HB2621 (Ingram)/ SB1091 (Reeves) Site plan approval; decommissioning certified solar energy equipment, facilities, or devices HB2621 passed Senate with amendment; SB1091 has passed both houses
SB1062 (McClellan) Virginia Fair Housing Law; unlawful discriminatory housing practices House: Referred to Committee on General Laws
SB1109 (McClellan) VA Fair Housing Law; unlawful discriminatory housing practices; sexual orientation and gender identity House: Referred to Committee on General Laws

Procurement

HB2328 (McNamara) VPPA; proscribed subcontracting by certain small businesses Passed both houses
HB1629 (Fowler) VPPA; requests for proposals; publication Passed both houses
HB2198 (Gilbert) VPPA; exempts counties, cities, school boards, and towns with population greater than 3,500; competitive negotiation for professional services Passed both houses
HB2071 (Bell)/ SB1153 (Black) VPPA; job order contracting; limitations Passed both houses

Local referenda; ABC

HB2634 (Hurst) /SB1110 (Reeves) Alcoholic beverage control; local referendums Passed both houses
HB1905 (Hurst) Alcoholic beverage control; mixed beverage referendum; exception Passed both houses

Economic Development

HB2779 (Edmunds)/ SB1785 (McDougle) Enterprise zones HB2779 passed Senate with amendment; SB1785 passed both houses
HB2182 (Austin)/ SB1681 (Mason) DGS; surplus property; opportunity for economic development entities to purchase prior to public sale HB2182 is in Senate General Laws; Substitute for SB1681 is on the House floor
SB1695 (Wagner) Public utilities; acquisition of rights-of-way for economic development sites Passed both houses

Miscellaneous

HB1772 (Mullin) FOIA Council; advisory opinions; evidence in civil proceedings Senate: Referred to Committee on Rules
HB2141 (Thomas) Local service districts; broadband and telecommunications services Senate: Reported from Local Government with amendments (12-Y 0-N 1-A)
HB1634 (Edmunds) Additional sales and use tax in Halifax County; appropriations to incorporated towns for educational purposes Senate: Reported from Finance with amendment (9-Y 4-N 1-A)

 VML Contact: Michelle Gowdy, mgowdy@vml.org

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