eNews Jan 28 2015 - VML Day at the Capitol
Transcription
eNews Jan 28 2015 - VML Day at the Capitol
VML Day at the Capitol Library of Virginia / 800 E. Broad St. / Richmond, VA 23219 Governor to kick-off program Wednesday afternoon Welcome to Richmond for the 2015 VML Day at the Capitol legislative program and reception. The VML Executive Committee and legislative staff are delighted that you’ve made this important commitment to the residents of the communities where you serve. Thank-you. Here are a few details to remember: Following welcoming remarks at 3 p.m., Gov. Terry McAuliffe will deliver the keynote address in the library’s Lecture Hall. The afternoon program, which will include remarks by Secretary of Transportation Aubrey Layne and a briefing by VML legislative staff members, will conclude at 5:30. Evening reception will be held in the library’s foyer from 5:30 until 7 p.m. Links to parking lot maps: http://bit.ly/1uTbDvu and http://bit.ly/1z2NBg3 Easy lobbying: Issues to address with your legislators Here are some key issues to address with legislators. Remember, something easy you can always do is to jot a note on a business card and leave that at your legislator’s office. Support these VML budget amendments: Eliminate “local aid to the Commonwealth” in FY16: Item 471.30 #1h (James), Item 471.30 #1s (Alexander), Item 471.30 #2s (Lucas), Item 471.30 #3s (Stanley), Item 471.30 #4s (Colgan) Revise the language on collection of fines and fees through implementation of the Inspector General’s report: Item 37 #1h (James), Item 3-6.05 #1h (James), Item 3-6.05 #1s (Lucas), Item 3-6.05 #2s (Stanley), Item 3-6.05 #3s (Carrico) Ensure that cities and counties do not have sole responsibility for future salary increases for deputy sheriffs: Item 66 #5h (Tyler), Item 66 #2s (Garrett) Support redistricting reform: Yes to SJR 284 (Vogel and Lucas), SB 840 (Watkins) Oppose BPOL changes that will reduce revenues: HB 1352 (Ramadan) Oppose changes to assessment appeals process: HB 1153 (Pogge) HB 1416 (Taylor) Oppose exemptions to stormwater utility fees: HB 1293 (Morris) 1 Overview: State budget has many local implications The close of FY14 shocked state leaders when revenues collapsed by $438 million in the last two months. A subsequent reforecast of state revenues showed a revenue shortfall of almost $2 billion over fiscal years 2015 and 2016. Working closely with the General Assembly, Gov. Terry McAuliffe worked out a strategy that addressed most of the $2.4 billion revenue hit by tapping cash reserves like the Rainy Day Fund and by imposing spending cuts on state agencies, state colleges and universities, and local governments. These actions, however, left the governor with an $882 million challenge. McAuliffe’s December budget amendments (HB 1400 and SB 800) tackled the unfunded portion as well as the governor’s $176 million in proposed new spending, including $11.3 million in additional payments for local and regional jail per diems. Embedded in the budget are a series of tax and fee increases. The fees would increase state parks cabin rentals, camping rentals and parking ($870,000 yearly); restaurant inspections ($3.8 million yearly); child protective services registrations ($225,000 yearly); and weights and measures inspections at gas stations and food stores ($500,000 yearly). The proposed changes in state tax policies have a far greater financial impact, calling for $114.3 million in additional revenue collections. These are: Coalfield Enhancement Tax Credit – limiting the amount that may be claimed to $500,000 per return; Virginia Coal Employment and Production Incentive Tax Credit – limiting the benefit to $2 per ton and the amount that can be redeemed to $500,000; Long-term health care insurance – reducing the deduction from 100 percent to 50 percent of the annual premium; Land Preservation Tax Credit – limiting the amount that may be claimed to $20,000 per taxpayer or $40,000 for joint returns; Sales tax holidays – combining all such holidays into a single three-day holiday in August; Sale of land for open space use – repealing the subtraction; Accelerated sales tax – lowering the threshold to include more retailers; and Online travel companies – imposing the sales tax on online companies that book lodging at the retail level rather than the wholesale level. This would also increase local transient occupancy taxes. The first of these tax bills (online travel companies) was shot down by a House Finance subcommittee last Wednesday. The Senate version of the bill will be heard by the Senate Finance Committee on Wednesday. If these bills are eventually defeated, K12 funding could be tapped to make up for the lost cash. That would be a blow to local school divisions and localities already preparing their budgets for FY 2016. McAuliffe’s budget contains items local governments can support and others that give pause. Among the governor’s amendments to support: Increase funding for the Governor’s Development Opportunity Fund ($20.7 million for the biennium) 2 Establish Virginia Tourism Growth Incentive Fund ($500,000 in FY16) Rapid re-housing assistance for the homeless ($1 million in FY16) Reduce teacher retirement liability ($150 million in FY16) and as a result, reduce employer teacher retirement contribution rate from the current 14.50 percent to 14.15 percent in FY16 Revive use of Literary Fund for school construction ($75 million in FY16 with $50 million reserved for loans and $25 million for interest rate subsidies) Fund legislation to extend foster care and adoption payment to age 21 ($5.7 million in FY16) Delay discharge of patients at state intellectual disability training centers ($6.4 million in FY16) Fund additional local eligibility workers for health and human resources programs ($1.9 million in FY16) Support Health Virginia to extend services to the uninsured who have serious mental illness, establish a children’s healthcare outreach program, provide dental coverage to pregnant women, and improve access to health care for veterans (Funded within existing state and federal resources) Support jail per diems in FY15 ($11.3 million) Establish new minimum salaries for sheriff deputies at grades 7 and 8 ($1.6 million) Support positions at local level to coordinate housing of homeless veterans ($180,000 in FY16) Among the governor’s amendments that give pause: No change in “local aid to the commonwealth” in FY15; slight reduction in FY16 No policy reductions in public education No increase to 599 law enforcement program Establish an unfunded mandate for cities and counties to maintain the new minimum salary levels for deputy sheriffs without future state funding Talking points: The budget does not make up for past state spending cuts in public education, public safety or health and human resources. If the governor’s tax and fee proposals are defeated, it is likely that there will be additional spending cuts made in public education, “599” local law enforcement or in “local aid to the commonwealth.” If House bills affecting BPOL (HB 1352) or real estate assessments (HB 1416 and HB 1576) and the budget bill does not take these changes into consideration, localities will be pushed towards raising local property taxes and fees. Staff contact: Neal Menkes, [email protected] 3 VML-backed budget amendments need your support VML sought amendments to address particularly onerous state-generated mandates. We need your help in promoting these amendments with your House and Senate members, particularly those who serve on the budget committees (House Appropriations and Senate Finance). There are many amendments introduced on any number of topics, and in order for the committees to pay attention to any of them, they need to hear from the people who support them. Local aid to the Commonwealth VML and local partners worked to get budget amendments introduced in the House and Senate to remove the mandate included in the Governor’s introduced budget to require local governments to hand back to the state funds used by localities to carry out state and federal mandates and programs. House: Item 471.30 #1h (James) Senate: Item 471.30 #1s (Alexander) Item 471.30 #2s (Lucas) Item 471.30 #3s (Stanley) Item 471.30 #4s (Colgan) Deputy sheriff salary mandate VML and local partners worked to get budget amendments introduced in the House and Senate to keep the salary increase for certain levels of deputy sheriffs but to eliminate the language in the Governor’s introduced budget to require localities to supplement future increases. House: Item 66#5h (Tyler) Senate: Item 66 #2s (Garrett) Fines and fees VML and local partners worked to get budget amendments introduced in the House and Senate to greatly reduce the state’s taking of local fines and fees. A set of two amendments are needed to accomplish this goal, so you will see two amendments listed per patron below. House: Item 37 #1h and Item 3-6.05 #1h (James) Senate: Item 37 #1s and Item 3-6.05 #1s (Lucas) Item 37 #2s and Item 3-6.05#2s (Stanley) Item 37 #3s and Item 3-6.05#3s (Carrico) Staff contacts: Janet Areson, [email protected]; Neal Menkes, [email protected]. BPOL bill bops local revenue collections VML’s Legislative Program clearly states that specific “local revenue authority and sources cannot be further restricted without first granting and providing alternative revenue authority with reliable, sustainable revenue sources.” This includes, without limitation, the BPOL and machinery & tools taxes. 4 HB 1352 comes before a House Finance Subcommittee on Wednesday. It would allow contractors to deduct from their gross proceeds the amounts paid to subcontractors, beginning in license year 2016. The potential revenue loss could be substantial, according to the Virginia Department of Taxation. The measure does not include an alternative revenue source to make up for the losses. Nor was a budget amendment submitted by the patron, Del. David I. Ramadan, to have the state reimburse localities for the drop in collections. Talking points: BPOL accounts for some $700 million each year for Virginia’s cities, most of the counties and many towns. BPOL combined with machinery and tools taxes is comparable to the state’s corporate income tax which raises some $900.0 million each year. Without BPOL or an alternative, sustainable revenue source, localities would have to increase its dependence on real estate and other property taxes. v Staff contact: Neal Menkes, [email protected] Governor’s bill will make more funds available for transit, local projects A comprehensive proposal by Gov. Terry McAuliffe to amend the process and allocation formulas of state transportation dollars would make more money available for local road and transit infrastructure. HB 1887 (Jones), presented in various committee meetings in the first weeks of session, will be up for a vote Thursday morning in the House Transportation Committee. Details at a glance The bill does not include new dollars for transportation. Instead, it replaces the current allocation formula for construction projects (set to expire in 2020) with the following: 40 percent to rebuild deteriorated pavement and bridges within the state’s interstate and primary system of highways. This includes those primary routes owned and maintained by cities and towns; 30 percent for projects (including rail and transit) that reduce congestion along statewide corridors and within regional networks; and 30 percent in the form of grants for construction district to fund projects to address needs identified in the Statewide Transportation Plan. These grants would be competitive. The importance of this change is that the current formula directing the Commonwealth Transportation Board (CTB) to prioritize the funding of state projects leaves nothing to construct local priorities. All proposed projects will be scored and ranked by a new prioritization process currently under development and scheduled to be adopted by the CTB in June. The ranking of projects will assist the CTB in making final decisions on allocation of funds within the state’s six-year funding plan. 5 In its current form the bill allocates approximately $40 million more a year to transit capital needs. The money to pay for this allocation will primarily come from a variety of funding streams. As the bill progresses, VML expects members of the House and Senate to work with the administration on changes. Staff contact: Joe Lerch, [email protected] Bill exempts churches from stormwater utility fees A subcommittee of the House Agriculture, Chesapeake and Natural Resources Committee will meet Thursday afternoon to consider exempting churches from paying local stormwater utility fees. HB 1293 (Morris) also extends this exemption to religiously-affiliated schools and universities. Local governments are authorized to establish a stormwater utility whereby charges are determined by the amount of impervious surfaces such as pavement and rooftops. Such an exemption would likely result in other classes of non-profit property owners (including federal and state government) seeking relief, thereby further diminishing revenues. Tell senators and delegates you oppose HB 1293. Talking points: Virginia’s localities are required under federal and state law to meet new requirements for reducing stormwater pollution. Recent cost estimates for Virginia to comply exceed $10 billion, with the majority of the costs falling on local governments. Stormwater utility fees provide a limited source of revenue for locals to tap into to finance costly projects to reduce pollution. Any state-mandated reductions to this revenue source will place additional financial burdens on localities. Staff contact: Joe Lerch, [email protected]. State likely to regulate ride-sharing services; leave taxi regulation to localities Legislation to give the state authority to regulate the emerging industry that uses smart phone apps such as Uber, Lyft and Sidecar to connect drivers and riders appears likely to become law. Making their way through both chambers are bills drafted by the Virginia Department of Motor Vehicles (DMV) to create a new licensing authority for these new transportation network companies (TNCs). The legislation makes clear that local governments are prohibited from regulating TNCs. The authority of localities to regulate taxicab services will remain, a position expressly supported by VML in its Legislative Program. SB 1025 (Watkins) was unanimously approved last week in committee after stakeholders representing TNCs, taxicab companies and insurance companies were brought together by DMV to agree on an amended bill. HB 1662 (Rust) will be 6 considered in the Transportation Committee Thursday morning and is expected to be amended to be identical to the senate measure. The growth in TNCs has created controversy across the globe with traditional taxicab drivers and companies who claim the unregulated TNCs have an unfair competitive advantage in the marketplace. Additionally, concerns regarding insurance liability have surfaced in the wake of accidents involving TNC drivers who use their personal vehicles to give rides. In June, DMV issued cease and desist orders to TNCs operating in Virginia, citing lack of legal authority to do so. But the popularity of such services, combined with their growing financial and political clout, led DMV to reverse course. It granted temporary operating authority to the companies and their drivers and began drafting the legislation, with the input of stakeholders, to create a new licensing authority specifically for TNCs. VML’s Legislative Program “supports state regulation of ride-sharing companies as needed to ensure proper safety, liability, cleanliness, insurance coverage, local revenue, consideration of ADA access, and equitable service in communities.” While the compromise bill in large part addresses many of these concerns, here are details local governments need to be aware of: The legislation specifically states that enforcement of the new law will be the responsibility of not only DMV "but also by any other law-enforcement officer." VML has repeatedly raised concerns regarding the potential impact this provision will have on local law enforcement. Requests to clarify that DMV has primary responsibility and that local police “may” enforce the law have been rejected by the legislature. However, DMV Commissioner Rick Holcomb assured VML that the department will assume primary responsibility and local police will not be tasked with enforcement. TNC drivers will not be allowed to refuse service "on the basis of points of departure and destination, race, color, national origin, religious belief or affiliation, sex, disability, age, sexual orientation, or gender identity." TNC drivers will be required to accommodate companion service animals for those with disabilities and by July 1, 2016 the TNC application must allow riders to indicate whether they need a TNC vehicle that is wheelchair accessible. The legislation also requires DMV to regularly consult with local governments to determine if TNCs, through their competition with locally regulated taxis, have resulted in a lack of availability for wheelchair accessible transportation services. If evidence suggests a decrease in accessibility, then DMV will explore the establishment of an additional fee on TNC companies, TNC drivers, and/or TNC rides to assist localities in funding alternatives for providing rides for persons with wheelchairs. Requires the screening of TNC drivers to include driving history and criminal background checks. Certain “barrier offenses” that turn up in records – including those in other states and the U.S. - will bar individuals from obtaining an operating license. These include commission of a violent crime and registration 7 as a sex offender. It is important to note that as originally drafted convictions of similar crimes in a foreign country would also bar individuals from being drivers. This prohibition was removed from the amended bill at the request of the TNCs. VML objected to its removal, noting that current state law includes convictions in a foreign country as a barrier to operating a tow truck. Requires TNC drivers to be covered by a motor vehicle liability insurance policy that specifically covers liabilities arising from a driver’s use of a vehicle to provide TNC services; vehicles must be registered with DMV and display markings that clearly identifies the TNC with which the vehicle is associated. TNCs can only provide rides on a prearranged basis through the mobile application platform. This means TNC drivers are not allowed to accept street hails similar to taxis. The growth of this industry creates the potential for loss in BPOL (Business, Professional and Occupational License) taxes. This is because the TNC companies will not be required to pay BPOL and their contract drivers’ annual incomes will in most cases fall short of BPOL minimum payments. By contrast, taxi companies operating in Virginia are subject to BPOL with annual gross revenues that trigger payment to localities. Staff contact: Joe Lerch, [email protected] CSA bills swirling in House, Senate Parental referrals to FAPT. HB 2083 (Peace) and SB 1041 (Hanger) would require local Comprehensive Services Act teams to create new policy to allow a parent or guardian to refer a child/family to the local Family Assessment and Policy Team (FAPT). Currently, referrals to FAPT are made by one or more agencies represented on the FAPT who work with the child and their family and know that their needs meet the requirements under CSA law. These bills have been amended to remove the word “direct” as in “direct access” to FAPT, but it still requires taking referrals from parents/guardians for cases that may or may not properly belong before FAPT; to provide research and case management for each referral in order to determine whether they properly belong before FAPT; and to overall handle a greater volume of work without any additional administrative assistance from the state or lessening of any other requirements. There have been no increases in state administrative allocations to local teams since the 1990s, despite repeated tries by VML and VACo. SB 1041 was reported from the Senate Rehabilitation and Social Services Committee on Jan. 23 and referred to the Senate Finance Committee to determine its state fiscal impact; HB 2083 is before the House Health, Welfare and Institutions Committee. No budget amendments were submitted to address the fiscal impact of these bills. Administrative Process Act and CSA. SB 1054 (Hanger) would require the State Executive Council, the governing body over CSA, to abide by the state Administrative Process Act. CSA uses its own hybrid system of policy development and public notice which has had an uneven history of application over the years. While VML 8 did not request the bill, its policy supports putting CSA under APA, so we support the legislation. The bill is before the Senate Rehabilitation and Social Services and should be on the docket Jan. 30. There are other minor bills affecting CSA, including SB 1151 (Wexton), which codifies changes in the make-up of the State-Local Advisory Team (SLAT), which serves as a policy arm for the State Executive Council. VML worked on the language in the bill during its development last fall and has no opposition to it. SB 850 (Favola) changes the name of CSA to “Children’s Services Act.” The monogram stays the same. VML does not have a position on the bill. Staff contact: Janet Areson, [email protected]. Child day care bills This is the year for bills regarding the regulation and other safety concerns regarding home-based, compensated child care services. One bill, SB 1029 (Marsden), would require the commissioner of revenue/local finance director who administers the BPOL tax to report to state social services on a quarterly basis information about anyone who applies for a business license in order to run a home-based child care business. VML has been working on possible amendments to the bill with the patron and the administration. VML would prefer that such providers register first with state social services and then provide proof of registration/licensure when applying for a business license. There are numerous bills addressing the number of children who can be cared for in a home without the provider being required to be licensed by the state. Some would start state licensure at one child, thereby eliminating the current family day home system designation – SB818 (Favola); HB 1552 (Filler-Corn) and HB 2046 (Filler-Corn); some would count the children of the provider towards the threshold for state licensure, which is six children – SB 780 (Favola/Ebbin/Wexton; SB 1124 (Barker); HB 1929 (Anderson). There are bills that would put in place new background check requirements or fingerprinting requirements for those providing home-based child care. SB 831 (Edwards) adds new barrier crimes to background check but no fingerprint test; SB 911 (Wexton) requires annual name-based background check (not the current three years) and adds individuals currently the subject of a child abuse/neglect complaint; SB 1055 (Hanger) prohibits sex offenders/individuals with founded complaints of abuse or neglect from working/living/volunteering in home offering child care; SB 1168 (Hanger), HB 1552 (Filler-Corn) and HB 1931 (Anderson) all require fingerprint-based background checks and call for a review of existing categories of license-exempt care, zoning, and other issues. Two bills would require unlicensed providers not voluntarily registered with the state to notify the state of their operation, notify parents of their unlicensed status, and submit to some basic health and safety requirements – SB 898 (Favola and Ebbin); (HB 1570) (Orrock) Finally, there are bills that would require all home-based child care businesses that receive a federal child care subsidy to be licensed, which is the case in some other states. These bills include SB 1123 (Barker) and HB 2023 (BaCote). VML does not have positions on any of the regulatory bills at this time; we are working on the BPOL-related bill and carefully watching the bills that call for a review of 9 existing license-exempt care (which affects many local government-sponsored programs) and zoning (which affects all members). Staff contact: Janet Areson, [email protected]. First-day introduction bill awaits action A House bill would require legislation with a local fiscal impact to be introduced no later than the first day of the session. HB 1865 (Kilgore) implements a key element of VML’s Legislative Program. The bill is based on recommendations first offered last year by the Governor’s Task Force for Local Government Mandate Review and the Task Force for Fiscal Impact Review. By providing local governments more time to assess the fiscal impact of proposed legislation, it is hoped that the General Assembly will make better decisions on measures affecting local spending and local revenues. The House Rules Committee has not yet taken any action. Talking points: Recommendation for the bill came about from both a gubernatorial commission and a General Assembly initiative. Many proposals affecting local revenues and local spending are complex and require time to solicit local input, compile and reconcile local responses, and provide to the legislature before decisions are made. First-day introduction of bills affecting local finances and spending was standard procedure until the General Assembly changed it. The reason for the change is not known. Staff contact: Neal Menkes, [email protected]. Bills on low performing schools advance Following a court decision declaring the Opportunity Educational Institution unconstitutional, the General Assembly is considering a variety of bills to address the issue of low-performing schools. School divisions with low performing schools would have increased flexibility with regards to calendars under HB 1585 (Stolle), which passed the House on Jan. 24 and likely will be heard in the Senate Education & Health Committee. If more than 15 percent of the schools within a division have failed to meet full accreditation, the bill would allow the superintendent and school board the flexibility to operate year-round schools or open before Labor Day. Another section of the bill allows the superintendent and school board similar authority for any school within a division that is not fully accredited. SB 821 (Miller) simply eliminates the Opportunity Educational Institution. That bill is on the Senate floor. The state would be required to offer training to principals and assistant principals in schools that are denied accreditation or accredited without warning for two years under HB 1872 (Bulova). Funding is included in the governor’s introduced budget amendments. This bill is in House Education. 10 Other bills that would encourage or force school boards to take particular actions or that would strengthen the role of the state Department of Education in overseeing lowperforming schools remain in committee or subcommittee in both the Senate and the House, although the Education Reform Subcommittee in House Education may deal with some of them at its Jan. 27 meeting. HB 1299 (R. Bell) requires school divisions with schools that have been denied accreditation to enter into a memorandum of understanding with the state Department of Education that would let the board make any changes necessary to improve the accreditation rankings. HB 1448 (McQuinn) sets up a Virginia Public School Improvement Program. HB 1557 (Kory) would allow, but does not require, the state board to provide guidance and recommendations on instructional matters. HB 1713 (LeMunyon) allows students in a failing school to transfer to any other school in the division. Two bills address the accreditation process itself by requiring the Board of Education to recognize student progress. HB 1873 (Krupicka) and SB 1320 (Locke) direct the Board of Education to establish additional accreditation ratings that recognize the progress of schools that do not meet accreditation benchmarks but have significantly improved their pass rates, are within specified ranges of benchmarks, or have demonstrated significant growth for the majority of their students. Staff contact: Mary Jo Fields, [email protected]. Fate of redistricting reform likely rests in House Three measures that would start Virginia down the road of redistricting reform are working their way through the Senate and will be before the House of Delegates. The House has not acted on redistricting measures that were introduced in that body, and redistricting reform is unlikely without a great push on delegates, especially those serving on the House Privileges & Elections Committee. OneVirginia2021, a redistricting advocacy group, calls SJR 284 (Vogel and Lucas) the “gold standard” of redistricting reform. This constitutional amendment would create an independent, non-partisan commission responsible for drawing legislative lines according to specified criteria. These criteria include the recognition of existing political boundaries (such as city, county and town boundaries, precincts, etc.), population, race and ethnicity, contiguity and compactness. Further, the amendment severely restricts the use of political data or election results. The measure passed the Senate on Monday afternoon. Another measure – SB 840 (Watkins) – would codify the use of those criteria by amending existing state law regarding redistricting. In addition, SB 840 also would add “community of interests” to the criteria that would guide the drawing of legislative lines. Like SJR 284, SB 840 severely restricts the use of political data or election results. SB 840 is on the docket for Tuesday’s (Jan. 27) meeting of the Senate Privileges & Elections Committee. SB 1000 (Lewis) establishes an advisory redistricting commission that would work with the state Division of Legislative Services to develop redistricting plans based on specified criteria. This is the weakest of the measures, however, as the General Assembly would be able to reject the plans. This measure was on the Senate floor for final passage on Monday. 11 Please urge your delegate to push for adoption of SJR 284 and SB 840. Talking points: Redistricting should be done objectively with boundaries drawn on the basis of legal, demographic and commonsense criteria that ignore the political interests of incumbents or political parties. The current redistricting process encourages legislators to focus on the far left or far right voters in their district-the ones who tend to vote in primaries-instead of the interests of the broader range of voters who participate in the general election. Voters should choose their legislators instead of legislators choosing their voters. Staff contact: Mary Jo Fields, [email protected]; Mark Flynn, [email protected]. Rules may change on variances – again In 2009, the rules for obtaining a variance were softened, to make it somewhat easier for a board of zoning appeals to grant a variance. This session, HB 1849 (Marshall, D.) weakens the standards further. VML continues negotiating with the Virginia Association of Realtors, which is seeking the bill, to not inappropriately weaken the standards. If it is too easy to obtain a variance, neighbors who are affected by the action can be harmed. The bill may be heard in a subcommittee of the House Counties, Cities & Towns Wednesday at 4 p.m., although it has not been placed on the docket yet. Staff contact: Mark Flynn, [email protected] Bill alters planning commission role HB 2262 (Morris) would require planning commissions to notify rezoning applicants “of the feasibility of the applicant’s plan for rezoning.” That standard is nearly impossible to meet, because the rezoning process is a legislative decision made by the governing body. Further, the bill makes the advice the planning commission official sends an applicant a “preliminary approval of the plan.” VML opposes the bill. Staff contact: Mark Flynn, [email protected]. Proffer payment change may become permanent A few years ago, in the middle of the recession, VML agreed with a change to have cash proffers paid at the time the certificate of occupancy is obtained, instead of the earlier time of issuance of a building permit. The law has a sunset clause of 2017. SB 726 (Cosgrove) and SB 1065 eliminate the sunset clause. VML does not oppose SB 726, but has concerns about the much wider scope of SB 1065. We expect the idea of delaying the payments will be extremely popular with the General Assembly. A locality receives a very low interest income in the six months or so between obtaining a building permit and certificate of occupancy. The builder has to pay an interest rate that is some 3 to 4 percent higher. Staff contact: Mark Flynn, [email protected] v 12 Bills would drastically change assessment rules Two House bills – HB 1416 (Taylor) and HB 1576 (Pogge) – would eliminate the presumption of correctness currently afforded an assessor’s valuation in real property tax appeals brought in circuit court, and would remove the taxpayer’s burden to rebut this presumption. Pogge’s bill would also permit a taxpayer to submit the valuation of an owner-occupied building to binding arbitration instead of filing an appeal to the local circuit court. According to the Weldon Cooper Center for Public Service at the University of Virginia, there were only 85 property assessment appeals made in 2013 that reached circuit court with just 16 granted judicial relief. Appeals made to the various Boards of Equalization across the state numbered just under 7,000 with fewer than 3,100 being successful. The most appeals granted were at the administrative level with 27,342 filed and 15,977 granted. According to the 2013 Tax Rates survey conducted by the Weldon Cooper Center, cities and counties reported well over 2.2 million residential taxable parcels. The two measures would overturn a comprehensive reform of the appeals process made in the 2011 legislative session. VML, VACo, the Commissioners of the Revenue Association of Virginia, the Virginia Association of Assessing Officers and the Virginia Association of Realtors all participated in developing the legislation. In addition, HB 1576 adds a new level of bureaucracy to the appeals process and may be another unfunded mandate foisted on localities. It also is unclear if the process and procedures set out in state statutes for contractual disputes will be suited for assessment appeals absence a valid contract between the parties or a voluntary agreement of both parties to participate. Both bills will be considered this week. HB 1416 is before the Civil Law Subcommittee of the House Courts of Justice Committee. HB 1576 will come before a House Finance Subcommittee on Wednesday. Talking points: The bills overturn the presumption of correctness local officials have traditionally been afforded. It is the same presumption that the Virginia tax commissioner enjoys when a taxpayer appeals his decision to circuit court. Without the taxpayer assuming the burden of proof, the bills have the potential of flooding the circuit courts by making judicial appeals easier. An unknown number of localities would have to beef up their legal resources to accommodate the workload. HB 1576 – It is unclear if the arbitrator’s decision can be appealed. If it can, the workload of circuit courts will increase, and the costs of establishing a new bureaucratic appeals process will not be justified. v Staff contact: Neal Menkes, [email protected]. Bill would upset grievance procedures for many HB 1744 (Hugo) upsets grievance rules for many localities. For years, localities have had the right to use a hearing officer for the final step of a grievance, instead of the 13 traditional three-member panel. Panels can be difficult to seat, and require much more effort for both the grievant and locality. The hearing officers are selected by the executive secretary of the Virginia Supreme Court. This bill allows the grievant to demand a panel, even if the locality never uses panels. Further, existing law has always allowed the CEO of the locality or his or her designee to decide questions of whether relief given in a grievance is consistent with the personnel regulations of the locality. The bill puts the decision in the hands of the commonwealth’s attorney – an attorney who doesn’t necessarily know the personnel rules or the grievance process. It also upsets school grievance procedures in the same manner. Staff contact: Mark Flynn, [email protected] v Rules governing procurement of professional services under assault A House bill would prohibit public bodies from discussing non-binding estimates of cost when procuring professional services until one firm is picked with which to negotiate. HB 1540 (Albo) is a huge change from the way architectural and engineering services have been procured for the 30-year life of the Virginia Public Procurement Act. Under the current process, public bodies cannot ask for prices in proposals, so the public body decides which firms to interview strictly on qualifications, without any knowledge of price. But at the discussion (interview) stage, the public body can ask the firms their “nonbinding” estimates of project cost. Based on the qualifications and the estimates of price, the public body then ranks the firms in order. After the firms are ranked, the public body can only negotiate with the firm ranked first. If the two parties cannot reach agreement, the public body has to go to the firm ranked second and cannot talk again to the firm ranked first, and so on until a contract is negotiated. HB 1540 was requested by lobbyists representing architects and engineers. VML believes that government agencies should be able to evaluate the price of work to be done for the government at a stage where it is meaningful. A House General Laws subcommittee will have taken up the bill Tuesday afternoon. Please talk with your delegate on the House General Laws Committee to oppose the professional services procurement provisions of the bill. Staff contact: Mark Flynn, [email protected] Community development authority repair needed Earlier this month, the Virginia Supreme Court issued an opinion that guts the ability of a locality to sell property for delinquent community development authority special assessments. The entire system of CDAs was built on an understanding of when land could be sold. The court had a different interpretation. It puts existing CDAs in jeopardy and stops new ones dead in their tracks. VML has worked with bond counsel and others to develop a legislative fix. The bill is SB 1448 (Vogel) and has been assigned to the Senate Local Government Committee. Please ask your senator and delegates to support the bill. 14 Staff contact: Mark Flynn, [email protected] v Other bills we are following … Firearms regulation HB 1390 (Berg) would prohibit localities from regulating firearms or ammunition. The bill has been referred to House Militia, Police and Public Safety committee. Staff contact: Kimberly Pollard, [email protected] Guns in libraries HB 2024 (BaCote) allows a locality to adopt an ordinance that prohibits firearms in libraries owned or operated by the locality. The bill is in subcommittee #1 of House Militia, Police and Public Safety. Staff contact: Kimberly Pollard, [email protected] Photo red prohibition HB 2163 (Cline) would repeal photo red technology in all localities that use it and would not allow it to be used in the future. Staff contact: Kimberly Pollard, [email protected] Studies on the horizon … Tax structure HJ 505 (Cole) establishes a joint subcommittee to study reforming Virginia's tax structure, including the feasibility of adopting a flat tax or a fair tax. The subcommittee shall review Virginia's entire state and local tax structure, examine ways to eliminate tax preferences and lower tax rates, eliminate or restructure unfair or unnecessarily burdensome taxes, and examine the feasibility of adopting a flat individual income tax. The resolution is in the House Rules Committee. Staff contact: Kimberly Pollard, [email protected] Model charters HJ 583 (Surovell) establishes a 10-member joint subcommittee to develop a model charter, or series of charters, to serve as a guide for local governments considering charter amendments and as a guide for member of the general assembly in evaluating charter bills. The resolution is in the House Rules Committee. Staff contact: Kimberly Pollard, [email protected] Car tax reimbursement HJ 590 (Ramadan) requests the Department of Taxation to conduct a study of reimbursement payments to localities under the car tax reimbursement program. The study directs the department to look at how per capita tangible personal property tax relief has changed between tax year 2006 and tax year 2014, and to identify the reasons 15 for the changes, including population trends. Further, the study directs the department to recommend a new formula for distributing the car tax payments that would incorporate changes in population and changing economic conditions. The result would be to change the distribution of a set amount of funds, which will make for winners and losers. The resolution is in the House Rules Committee. Staff contact: Kimberly Pollard, [email protected] 16