VA-West Coalition

Legislative Newsletter
February 17, 2012

Partisan Temperature Rises as Session Hits Half Time

The Virginia General Assembly reached the mid-way point of the 2012 session earlier this week as both bodies endured grueling floor sessions to finish consideration of legislation originating in their respective chambers. House Republican lawmakers held a Crossover press conference (video here) on Wednesday to tout their legislative accomplishments with a focus on bills dealing with job creation, education, government reform and public safety. The Speaker also defended his caucus against charges that House Republicans were narrowly focused on socially conservative issues, pointing out that less than two-and-a-half percent of the bills that passed the House dealt with those issues. Later that day, members of the Legislative Black Caucus argued that the session had indeed been dominated by controversial legislation that created lengthy floor debate and prompted complaints from their constituents. (See more here)

Earlier this week, Governor Bob McDonnell sent an inquiry to Senate Democratic leaders requesting their input on the state budget On Thursday afternoon, Senate Democrats issued a curt response stating they had substantive concerns about some of the Governor's proposals. They also accused the Governor of engaging in political gamesmanship after the Governor released his letter to the media. (See more here and here).

While the battle to frame the political narrative will no doubt continue, lawmakers from both Chambers must reconcile their differences on several key pieces of legislation prior to the scheduled adjournment on March 10th.

Education – The House approved legislation that would limit tenure of all new K-12 teachers and principals by replacing continuing contracts with three-year contracts that would not automatically be renewed. On Tuesday, the Senate voted 20 to 18 against similar Senate legislation, with Senate Majority Leader Tommy Norment (R-James City County) casting one of the no votes. Originally, the Governor backed a proposed a system of annual contract and evaluations. The House also passed legislation to allow school districts to open prior to Labor Day. Similar legislation was rejected earlier in the session by the Senate Finance Committee.

Transportation – The House and Senate both approved dueling omnibus transportation bills (HB1248/SB639) that removed key recommendations proposed by the Governor. The House version retains an increase in the portion of the sales tax dedicated to transportation from .5 percent to .75 percent and dedicates 1 percent of any General Fund growth above 8 percent to transportation. The Senate version removes the sales tax shift and calls for the motor fuels tax to be indexed with inflation. In an impassioned speech on the Senate floor, Senator Frank Wagner (R-Virginia Beach) defended his proposal to index the gas tax by claiming he was embarrassed by the condition of Virginia’s roads and that indexing was only a first step to address a larger problem. Standalone legislation to index the gas tax has already been defeated in the House.

Health Care - The Governor's budget cuts Medicaid by not adjusting hospital payments for inflation. The House and Senate are likely to restore some of this funding.

Budget – The House Appropriations Committee and Senate Finance Committee are scheduled to release their respective 2012-2014 biennium budgets on Sunday (Feb 19^th.)
Budget Schedule:
February 21^st – Copies of budget amendments available
February 23^rd – House floor vote on budget
February 29^th – Last day to act on budget and revenue bill(s) from the other Chamber
March 6^th – Budget Conference Committee to complete work
March 8^th – Budget conference report available
March 10^th – Final vote on budget conference report

See more here and here

Machinery and Tools Investment Grant Program

Legislation (HB512) sponsored by Delegate Bob Purkey (R-Virginia Beach) designed to boost manufacturing in the Commonwealth was defeated on the House Floor after local governments cautioned lawmakers about its fiscal impact. Purkey’s bill would have exempted new equipment for the first three years it is in service from the local machinery and tools tax. In 2010, localities collected over $200 million in machinery and tools taxes. A modified Senate measure (SB549) that creates a state administered Machinery and Tools Investment Grant Fund to offset the first two years of taxes paid on new equipment was approved by the Senate on a vote of 28-12 on Tuesday.
Position: VA West supports this legislation to encourage capital investment.

State Revenues Continue Modest Growth

On Monday, Governor McDonnell reported that Virginia’s revenue collections grew on a year-to-date basis but lagged slightly behind the revised annual forecast of 4.6 percent. General Fund collections in January were $1.51 billion or 3.4 percent above collections from January 2011. Every source of general revenue grew modestly in January except for the tax collected from recording deeds, wills, lawsuits and contracts, and on insurance premiums. In his monthly revenue report, Secretary of Finance Ric Brown noted that the pace of job growth in Virginia remains modest and uncertainty surrounding domestic policy, the European debt crisis, and slowing global economies continue to act as a drag on economic growth. Commenting on the January report, Governor McDonnell encouraged lawmakers to maintain a fiscally conservative approach on spending decisions as they prepare to unveil their biennial budget proposals next week.
Secretary Brown’s January Revenue Report can be found here.

Student Scholarship Legislation Advances

In a contentious Senate Finance Committee hearing Tuesday, legislation (SB131) that would establish tax credits for companies that contribute funds to nonprofit organizations that provide scholarships to low income students to attend private schools survived a series of parliamentary hurdles to advance to a vote on the Senate Floor. The total amount of credits available in any given fiscal year would be capped at $25 million. Opponents of the legislation argued that this legislation would strip additional funding from already struggling public schools. Senator Yvonne Miller (D-Norfolk) asked the bill’s patrons, Senators Mark Obenshain (R-Harrisonburg) and Bill Stanley (R-Martinsville), if the legislation would lead to ‘skimming,’ a practice Miller described as ‘taking the brain power’ out of public schools while leaving more difficult students to educate with less money. Senator Henry Marsh (D-Richmond) inquired how many public school students could be accommodated under the program. Senators Stanley and Obenshain responded that a similar program in Florida had been widely successful and eventually won over the support of several Democratic lawmakers in the Sunshine State. A similar measure in the House (HB321) was approved on a party line vote on February 14^th.

Changing the Composition of the Commonwealth Transportation Board
On Wednesday, the Senate Transportation Committee voted to carry over a House proposal (HB864) for study that would have altered the composition of the Commonwealth Transportation Board (CTB), a 17-member panel appointed by the Governor charged with allocating funding for highways, airports, seaports, and public transit. Under this legislation, members of the CTB would be selected from each of Virginia’s 11 Congressional districts. Three at-large members would also be chosen with two coming from metropolitan planning areas with populations greater than 200,000. The sponsor of this legislation, Delegate Tom Rust (R-Fairfax), argued that his legislation would make representation on the Board more proportional to population. This legislation was narrowly approved in the House by a vote of 51-47.
Position: VA West expressed concern that this legislation would diminish our region’s voice in the allocation of state transportation funding.

Other Headlines

An Early Look at the 2013 GOP
Governors Race

VDOT Meets Project Goals

Cuccinelli Presentation on National Mortgage Servicing Settlement

Texting and Driving Bill Stalls

Goode for President

Important Session Dates

February 14 - Crossover

March 11 - Adjournment Sine Die

For more information, click here.

Video

To view live video or hear live audio from the House and Senate floor sessions, click here.

This format allows you to check bills and their status at a glance, by category. If you have questions along the way, please feel to contact Tori Williams at twilliams@roanokechamber.org or 540.983.0700 x 229 or 540.819.7713.

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VA West is monitoring bills categorized as: ARTS & TOURISM, ECONOMIC DEVELOPMENT, EDUCATION K-12, ENVIRONMENT & ENERGY, GOVERNMENT, HEALTHCARE, HIGHER EDUCATION, IMMIGRATION, OTHER, TAXATION, TRANSPORTATION FUNDING, TRANSPORTATION - AIR, RAIL & HIGHWAY, & WORKPLACE. Bills in Red have been passed by or tabled. Click on the category to go directly to that category. If you have questions about a bill or our position, please contact Tori Williams at twilliams@roanokechamber.orgor 540.983.0700
2012 Legislative Scorecard
Bill Number	Description	Position	Status
ECONOMIC DEVELOPMENT
Cosgrove	HB169 Enterprise Zones; criteria for designation	Support	Assigned App. sub: E.D.A.N.R.: Tabled
Cline	HB243 Virginia Investment Partnership Act; Definitions	Support	House: BLOCK VOTE PASS; Senate: Committee on General Laws and Technology
Villanueva	HB334 Virginia Public Procurement Act	Monitor	Continued to 2013 in General Laws
Villanueva	HB335 Individual and Corporate Income Taxes; Subtraction for Investment in Small Businesses	Support	Stricken from Docket by Finance
Kilgore	HB714 Major Business Facility Job Tax Credit	Support	House: PASS, (95-Y 2-N); Senate: Reported from Finance
Yancey	HB720 Worker Retraining Tax Credit	Support	House: Continued to 2013
Landes	HB766 Agriculture and Forestry Industries Development Fund	Support	House: BLOCK PASS (100-Y)
Landes	HB767 Dept. of Business Assistance; Small Business Job Grant Fund	Monitor	House: BLOCK PASS; Senate: Committee on General Laws and Technology
Landes	HB768 Dept. of Business Assistance; Virginia Jobs Investment Plan	Monitor	House: BLOCK PASS; Senate: Committee on General Laws and Technology
Lopez	HB783 Microenterprise Investment Tax Credits	Monitor	Stricken from Docket in Finance
James	HB841 Major Business Facility Job Tax Credits and Enterprise Zone Job Creation Grants	Support	House: VOTE: PASSAGE (96-Y 2-N 1-A)
Watkins	SB79 Public Procurement Act; Bid match preference for State businesses	Monitor	Committee on General Laws and Technology: Passed by Indefinitely
Newman	SB338 Virginia Investment Partnership Act; definitions.	Support	Senate: PASS (40-Y 0-N); House: Committee on General Laws
Reeves	SB368 Major business facility job tax credit.	Support	Senate: Read third time and passed (40-Y)
EDUCATION K-12
Massie	HB321 Income Tax; educational improvement scholarships tax credit	Monitor	House: VOTE: PASSAGE (64-Y 35-N)
McClellan	Study: JLARC to Study Composite Index	Monitor	Committee Referral Pending
Greason	HB1108 Career and Technical Education Industry Certifications	Monitor	House: BLOCK VOTE (100-Y 0-N); Senate: Reported from Committee on Education and Health
McClellan	HJ63 Study; Joint Legislative Audit and Review Commission; study Composite Index of Local Ability to Pay.	Monitor	Committee on Rules: Tabled
Morris	HJ110 Study; efficiency of the regionalization of school divisions and the consolidation of administrative	Monitor	Committee on Rules; sub: studies; Tabled
Marsh	SJ14 Study: JLARC to Study Composite Index	Monitor	Committee on Rules: Continued to 2013
ENVIRONMENT AND ENERGY
Knight	HB176 Nutrient Credit Certification; regulations	Monitor	House: BLOCK VOTE PASSAGE; Senate: Committee on Agriculture, Conservation and Natural Resources
Marshall	HB559 Natural Gas Utility Infrastructure	Support	House: Passed (98-Y 0-N 1-A); Senate: Passed: (40-Y)
Merricks	HB587 Electric Transmissions Line	Support	House: VOTE: PASSAGE; Senate: VOTE PASSAGE
Sickles	HB883 Income Tax Credit; Solar Energy Equipment Systems	Support	Continued to 2013 by Committee on Finance
Watkins	SB77 Nutrient Credit Certification; regulations	Monitor	Senate: PASSED (39-Y 0-N); House: Committee on Agriculture, Chesapeake and Natural Resources
Norment	SB413 Renewable Energy Portfolio Standard Program	Support	Senate: PASSED (26-Y 14-N); House: Committee on Commerce and Labor
GOVERNMENT
Massie	HB324 Tax-supported Debt of the Commonwealth	Monitor	House: BLOCK VOTE PASS; Senate: Committee on Finance
Gilbert	HB390 Creation of New Regulatory Program	Support	Tabled by Voice Vote
Filler-Corn	HB698 Posting Conference Report on the Budget	Support	Committee on Appropriations, sub: Technology oversight
Robinson	HB994 Broadband Advisory Council	Support	House: BLOCK VOTE PASS; Senate: General Laws Committee
McDougle	SB117 Biennial Appropriation Act	Support	Senate: BLOCK VOTE PASS; House: Committee on Appropriations
Plum	HJ116 Constitutional amendment (first resolution); Virginia Redistricting Commission.	Monitor	Committee on Privileges and Elections: Tabled
Byron	HJ141 Study; JLARC; unfunded federal mandates; report.	Support	Committee on Rules; sub: Studies: Tabled
Obenshain	SB242 Public procurement; agreements with labor organizations.	Support	Senate: PASS (20-Y 20-N; Chair - Y); House: Committee on General Laws
Vogel	SB446 Bipartisan Redistricting Commission created.	Support	Senate: Passed (40-Y 0-N); House Committee on Privileges and Elections
HEALTHCARE
Miller	HB213 Mandated health insurance benefits; essential benefits package	Support	Committee on Commerce and Labor: Subcommittee tabled by voice vote
Peace	HB264 Interstate Health Care Compact	Monitor	Continued to 2013 by voice vote
Wagner	SB518 Mandated health insurance benefits; essential benefits package		Committee on Commerce and Labor, sub: Health Insurance: Continued to 2013
HIGHER EDUCATION
Putney	HB54 Higher Educational Institutions Bond Act of 2012	Support	House: BLOCK VOTE PASS; Senate: Committee on Finance
Colgan	SB31 Bonds; capital projects at institutions of higher learning	Support	Senate: BLOCK PASS (40-0); House: Committee on Appropriations
Merricks	HJ97 Study; State Council of Higher Education for Va; management, structure of higher education centers	Monitor	House: VOTE: PASSAGE (95-Y 2-N); Senate: Committee on Rules
Landes	HJ108 Study; JLARC to study cost efficiency in higher education; report.	Monitor	House: VOTE: PASSAGE (95-Y 2-N); Senate: Committee on Rules
IMMIGRATION

TAXATION
Cole	HB10 BPOL Tax	Support	House: PASS (88-Y 12-N); Senate: Committee on Finance
Cole	HB24 BOP Tax; Certain localities required to assess on VA taxable income	Support	Committee on Finance; subcommittee recommends passing by indefinitely
Bell	HB111 Small business job creation tax credit	Support	Committee on Finance Continued to 2013
Toscano	HB146 Virginia's Tax Preferences	Monitor	Committee on Rules; tabled by voice vote
Ransone	HB148 Income Tax, corporate; lower rate for certain businesses	Support	Committee on Commerce and Labor Passed by in Definitely
Herring	HB191 Small Businesses; Tax credit for those hiring graduates of Virginia's colleges	Monitor	Committee on Finance Continued to 2013
Comstock	HB216 Sales and Use tax exemption; certain computer equipment and enabling software	Support	House: VOTE: PASSAGE (99-Y 0-N 1-A)
Cline	HB246 Sunset Provisions on State Tax Credits	Support	House: BLOCK VOTE PASS
Cline	HB248 Eliminates Virginia's Corporate Income Tax	Monitor	Committee on Finance Continued to 2013
Byron	HB460 Corporate Income Tax; single sales factor apportionment for income of manufacturers	Support	House: BLOCK VOTE PASS; Senate: Committee on Finance
Cole	HJ52 Study; Reforming Virginia's state and local tax structure	Support	Committee on Rules; sub: recommends tabling by voice vote
Purkey	HB514 Tax credits for costs to comply with excessive state regulations	Monitor	Committee on Finance Continued to 2013
Purkey	HB512 Intangible Personal Property Tax; Machinery and Tools	Support	House: VOTE: DEFEATED (35-Y 65-N)
Comstock	HB551 Telework Expenses tax credit	Support	House: VOTE: PASSAGE (100-Y 0-N)
Merricks	HB585 Small Business Investor Tax Credit	Support	House: VOTE: PASSAGE (100-Y 0-N)
Englin	HB1030 Minimum Corporate Income Tax	Oppose	Committee on Finance; subcommittee recommends passing by indefinitely
Anderson	HB1049 STEM Tax Credit	Support	Committee on Finance Continued to 2013
Cole	HJ52 Study; Reforming Virginia's state and local tax structure	Support	Subcommittee recommends tabling by voice vote
Stanley	SB61 Income Tax; corporate; lower rate for certain businesses	Support	Committee on Finance Continued to 2013
Stanley	SB68 Income tax, corporate; creates industrial building rehabilitation tax credit	Support	Committee on Finance Continued to 2013
Stanley	SB70 Retail and Sales Use Tax; two-year sales tax moratorium for construction materials and supplies	Support	Continued to 2013 in Finance
Watkins	SB78 Income Tax, corporate; taxes paid in another state	Support	Stricken from the docket at request of the Committee on Finance
Watkins	SB79 Virginia Public Procurement Act; bid match preference for Virginia businesses.		Committee on General Laws and Technology; passed by indefinitely
Herring	SB226 Income tax; capital gains subtraction.	Support	Senate: BLOCK VOTE PASS; House: Committee on Finance recommends reporting
McDougle	SB344 Small Business Investor Tax Credit	Support	Senate: VOTE: PASSAGE (40-Y 0-N); House: Committee on General Laws
Stosch	SB462 Income tax; conformity with § 199 of the Internal Revenue Code.	Support	Senate: VOTE: PASSAGE (40-Y 0-N); House: Committee on Finance
TRANSPORTATION FUNDING /HIGHWAYS
Cole	HB23 Transportation Trust Fund; increases amount of sales and use tax revenue dedicated to Fund	Monitor	House: Referred to Appropriations Committee; sub: Transportation: Tabled
Ware	HB155 Revenue Sharing Funds for Highways	Monitor	Committee on Transportation; tabled by voice vote
Howell (Algie)	HB393 Motor fuels tax; rate increase	Support	Committee on Finance; tabled by voice vote
Watts	HB422 Transportation Funding and Administration	Monitor	Committee on Finance; tabled by voice vote
Bulova	HB427 Highway Maintenance Funds	Monitor	Tabled
Albo	HB477 Highway maintenance funds	Monitor	House: VOTE: PASSAGE (73-Y 27-N)
Poindexter	HB542 Highway maintenance projects	Support	Tabled by Committee on Transportation
Marshall	HB575 Transportation Funding; Salem Transportation District	Support	Committee on Appropriations; sub: tabled by voice vote
Merricks	HB585 Income Tax; Small Business Investment Tax Credits	Support	House: VOTE: PASSAGE (100-Y)
Filler--Corn	HB699 Highway Maintenance Funds	Monitor	Committee on Transportation Tabled
Yancey	HB723 Transportation Funding and Administration	Monitor	Committee on Appropriations; sub: tabled by voice vote
May	HB802 Transportation Funding: Virginia Pump Toll	Support	Referred to Committee on Finance; sub: tabled by voice vote
Marshall	HB827 Transportation Districts; Repeals Allocation Formula	Oppose	Committee on Transportation Tabled
Rust	HB876 Motor Vehicle Fuels Sales Tax	Monitor	House: BLOCK VOTE PASSAGE; Senate: VOTE PASSAGE (39-Y 0-N)
Alexander	HB892 Taxes on Fuels	Monitor	Committee on Finance Tabled
Albo	HB899 Transportation Funding; Motor Fuels Tax and Sales and Use Tax Revenue	Monitor	Committee on Finance Tabled
Minchew	HB909 Highway Maintenance and Construction	Oppose	Committee on Transportation; sub: tabled by voice vote
Scott	HB983 Motor Fuels Tax Rate	Support	Committee on Finance; sub: tabled by voice vote
Purkey	HB1241 Motor Fuels Tax; Indexed	Support	Committee on Finance Tabled
Obenshain	SJ2 Constitutional Amendment; Transportation Funds	Support	Continued to 2013 in Committee on Privileges and Elections
Black	SJ6 Constitutional Amendment; Transportation Funds	Support	Continued to 2013 in Committee on Privileges and Elections
Watts	HJ71 Constitutional amendment (first resolution); Transportation Funds.	Support	Tabled in Committee on Privileges and Elections
TRANSPORTATION AIR , RAIL, OTHER

WORKPLACE
Bell	HJ7 Constitutional Amendment; Right-to-Work	Support	Tabled in Committee on Privileges and Elections
McDougle	SJ25 Constitutional Amendment: Right to Work	Support	Continued to 2013 in Committee on Privileges and Elections
OTHER
Bell	HB5 Constitutional Amendment: Taking or Damaging of Private Property	Monitor	House: VOTE PASSAGE (83-Y 14-N)
Comstock	HB33 Public Procurement: State agency agreements with labor organizations	Support	House: PASS (69-Y 27-N); Senate: Referred to Committee on General Laws and Technology
Crockett-Stark	HB597 Eminent Domain; Lost Profits and Access	Monitor	House: Subcommittee recommends incorporating (HB1035-Joannou) by voice vote
Bell	HB251 Congressional Redistricting	Support	Passed by house (74-Y 21-N); Passed by Senate (20-Y 19-N)
Habeeb	HJ47 Commending Milan Tobacconists on the occasion of its 100th anniversary.	Support	Passed by House; Passed by Senate
Obenshain	SB437 Eminent domain; lost profits and access.	Monitor	Senate: VOTE: PASSAGE (23-Y 17-N)
Bill status is current on the date of the newsletter. To find out the status after that date, click on the bill number. To learn more about a particular bill listed, click on the bill number.

VAWEST Business & Legislative Coalition
210 South Jefferson St.
Roanoke, Virginia 24011
Phone: (540) 983.0700
Fax: (540) 983.0723