Virginia Roundup

Virginia made steady gains in the environment and clean energy, acted to further clean up payday lending practices, and used federal stimulus funds to ward off deeper cuts to vital programs like health care, education and public safety.  However, the conservative-dominated House blocked a measure to expand the state's unemployment benefits - which are among the most meager in the country - and cost the state an additional $125 million in federal stimulus funds to the state.  The Governor vetoed expansions of the death penalty and bills allowing licensees to carry concealed weapons in bars, although the legislature overrode one of the vetoes that would have prevented retired law enforcement officials from being able to carry a concealed weapon in eateries.

Unemployment Benefits and the Federal Stimulus:  Even though the legislature rejected Gov. Kaine's proposal to increase unemployment benefits with the help of $125 million in federal stimulus, the Governor is considering a special session for the legislature to reconsider the proposal, given rising unemployment rates and the fact that Virginia's jobless benefits are among the most limited in the country.  In a disheartening and callous move, one conservative lawmaker who owns a shipbuilding company and recently laid off 45 workers, voted against the expanded benefits.

Budget and Stimulus:  Virginia passes its biennial budget in even-numbered years, but continued declines in tax revenue forced the legislature to consider cuts to health care, public safety and education programs. Softening the blow, the federal stimulus package helped to prevent an additional $800 million of spending reductions to key areas like Medicaid, education, and the state workforce.

Health Care and Public Health:  The legislature passed and the Governor endorsed a statewide ban on smoking in bars and restaurants with exceptions for establishments with separate ventilated rooms, patios and private clubs.  According to the Washington Post, the number of tobacco-related deaths each year in Virginia exceeds 9,000 and the total annual cost associated with treating the ill effects of smoking is $2.08 billion. Medicaid alone spends $401 million each year on health care costs related to smoking. Unfortunately, legislators defeated the Governor's proposal to increase the cigarette tax to 60 cents per pack, keeping it at one of the lowest levels in the country.  Also, lawmakers passed a bill allowing insurance companies to offer health plans exempt of state coverage mandates to small groups who have not offered coverage to employees in the past six months.  This measure, while potentially enabling insurers to offer cheaper plans, will mean those plans do not provide adequate coverage for health care needs - resulting in "health insurance" in name only.

Environment and Energy: Governor Kaine won approval of several environment, transportation and energy-related measures that are part of his Renew Virginia initiative.  These include:

• SB 1248 provides cost recovery for investments in energy efficiency made by electric utilities.  This helps to correct existing finance rules which make it more profitable to construct new plants instead of investing in energy efficiency.
• SB 1339 sets the goal of raising the state's renewable energy portfolio to 15% by 2025.  The bill also allows utilities to set "dynamic electric rates" which encourage consumers to reduce electricity use during peak hours.  The bill will also increase reimbursement rates for private renewable energy systems that send surplus renewable energy back into the electric grid.
• SB 1186 reforms the Virginia Biofuels Production Incentive Grant Program to incentivize the creation of non-food-based biofuels.
• $20 million was set aside to continue efforts to combat pollution caused by agricultural runoff.
• And, lawmakers passed HB 2019 and SB 1398 to link transportation development and land use planning across the state.  Specifically, the state will establish standards for coordinating transportation investments and land use planning, and consider alternative transportation systems as the state modernizes its transportation infrastructure.

Public Safety:  Lawmakers agreed on a ban on texting while driving, although a driver can only be charged if pulled over for a different reason. Beyond that, the session overwhelmingly involved the Governor vetoing bad criminal justice and public safety bills:

• While many states are restricting or eliminating the death penalty, the Virginia legislature voted to expand the types of convictions eligible for capital punishment to include accomplices to murder and people convicted of killing fire marshals and auxiliary police personnel.  Fortunately, Gov. Kaine vetoed the bills and the legislature did not override his action.  
• The Governor also vetoed a bill that would have allowed people with licenses to carry a concealed handgun into a bar.  The veto was sustained.  
• Also sustained were vetoes of a bill that would have exempted active duty military personnel or members of the Virginia National Guard from the state's "one-gun-a-month" law on purchases of handguns and a bill that would have regulated and potentially limited localities from commending gun buyback programs. 
• Conversely, legislators overrode the Governor's vetoes of a bill that would allow retired law enforcement officials to carry a concealed weapons into a bar and a bill allowing on-line completion of the concealed weapons safety test.

Unfortunately, the legislature failed to pass legislation closing the gun show loophole, meaning anybody can buy a gun at a gun show from an unlicensed dealer without first undergoing a background check.

Elections:  The state did make some minor adjustments to election law:

• After years of voters complaining about being turned away at the polls for wearing a campaign t-shirt under an overly strict interpretation of the state's electioneering statute, a provision was passed that will allow voters to wear clothing that endorses a specific candidate in polling places.  
• HB 1881 was enacted to allow military and overseas voters receive their absentee ballot by email. The completed ballot must be returned by mail.
• SB 993 and HB 1712 will conform Virginia's absentee ballots with federal requirements and allow ballots to be returned until polls are closed.

Unfortunately, legislators defeated the governor's priority election reform legislation, early voting, at the beginning of the session.  Gov. Kaine tried again with a less expansive bill that passed the Senate at the end of the session but died in the House.

Immigration:  Notably, the number of anti-immigrant bills in Virginia decreased from 110 introduced last session to 6.

• Of these, only two passed: HB 2580 allows local law enforcement to arrest and detain immigrants with prior arrest convictions who are waiting to be transferred into federal custody, and HB 2473 classifies libraries as places where loitering is not permitted, impacting day laborers who may gather near public libraries in search of work.
• In terms of positive legislation, HB 2016 relates to human trafficking and expands abduction to include abduction with the intent to subject the person to forced labor or services.  Intimidation is redefined to include withholding a person's passport or like documents.  The bill also adds four new RICO (Racketeer Influenced and Corrupt Organizations) crimes.

Local leaders believe that Gov. Timothy Kaine has been a leader in convincing the state that prominent anti-immigrant legislation poses a risk to Virginia’s image as business friendly.  Advocates still worry however that once federal immigration reform is reintroduced, the issue will reignite at the statehouse.

Broadband:  To build the state's broadband infrastructure, lawmakers passed HB 2665 to create the Broadband Infrastructure Loan Fund.  The legislation aims to support broadband projects undertaken by local governments.  The program will prioritize projects where private industry will operate and maintain the broadband systems, projects where private involvement results in cost savings, and projects that serve two or more local governments and underserved areas. While passage of the bill indicates Virginia's recognition of the economic and social benefits of broadband deployment, many details need to be sorted out in the implementation of the bill before advocates can judge the true implications of the initiative.

The legislature also passed HB 2423 creating the Broadband Advisory Council to advise the Governor on policy and funding priorities to expedite deployment and reduce the cost of broadband access in the Commonwealth.

Payday Lending:  Attempting to close a loophole on new payday lending regulations that became effective on January 1st, lawmakers passed a bill requiring payday lenders to choose between offering payday loans or open-ended loans, but not both.  Open-ended loans are less regulated than payday loans and more likely to leave consumers with unlimited fees.

Civil Rights:  Lawmakers failed again to pass legislation outlawing workplace discrimination by state and local governments based on sexual orientation.  While both Gov. Kaine and former Gov. Warner have authored executive orders establishing this protection for state workers, the law would prevent those policies from being overturned by a subsequent governor.

Arkansas Roundup

Like most states, this year Arkansas faced a budget shortfall, yet there was enough money from previous surplus years to make balancing the budget much less painful than in most places.  The majority of the noted achievements relate to taxing and budgeting, though some important gains were made in other areas, principally in education and health care.  However, the majority of progressive gains were incremental.

Tax and Budget:  The state's $4.5 billion spending plan for the upcoming year was balanced with $100 million from the state's surplus funds.  Additionally, taxes were raised on tobacco products.  At the same time the sales tax on groceries was cut by a third and the tax on manufacturer's utility bills was cut three-fourths of a percent.  The governor has warned that next year hard choices will have to be made to keep the budget in balance.

• 56-cent Tobacco Tax Increase:  The state is raising the tax on cigarettes and other tobacco products to raise $72 million to fund health care improvements, including a statewide trauma system, an increase of substance-abuse treatment, expanded access to children's health insurance, and support for community health centers.  Arkansas is one of only a few states that lack a statewide health system; the state also lacks a level one trauma center.

• Sales Tax Decreases:  Lawmakers reduced the state sales tax on groceries by a penny (from three cents) and on manufacturers’ utilities by three-fourths of a cent.  The state also passed an exemption for raw products sold at farmers' markets from state sales tax.  Back-to-school sales tax holiday killed in House committee.

• Lottery Board Established:  After a voter referendum was passed last year establishing a state lottery with proceeds going to college scholarships, legislators created a nine-member board to operate lottery games under legislative oversight, established a sliding scale to fund scholarships according to lottery revenues, revamped the scholarship application process, and set criteria students must meet to qualify for the awards.

• State Unemployment Law Changed:  Unemployment rules were changed so the state can qualify for $59 million in federal stimulus funds to support out-of-worker Arkansans.

• Economic Development Incentives:  The state authorized a 15% rebate on production expenses of at least $50,000 for film and TV production.  Meanwhile, a bill to grant 20% tax credits on construction and renovation in downtown business improvement districts was defeated in the Senate and opposed by the Governor because of the estimated $10 million cost.  

• Capital Gains Tax Cuts Defeated:  The House passed a bill to cut $42 million in capital gains taxes that died in the Senate after the Governor's office intervened.

Health Care:

• Assist Teachers with Insurance Premiums:  Legislation was passed to cover $15 million of increases in insurance premiums for school teachers.
• Children's Health Insurance Expanded:  The eligibility for the ARKids First children's health insurance program was expanded to include families making up to 250 percent of the federal poverty line.
• Campus Smoking Bans:  Smoking on state-supported college and university campuses will be prohibited beginning on Aug. 1.

Reproductive Rights:  Reproductive freedom suffered significant losses this session with the passage of a ban on "late term abortions" for women, even those suffering significant health risks from birth.  As well, an Emergency Contraception bill by Sen. Joyce Elliot to require health care providers to offer emergency contraception to rape survivors was sidelined by conservative groups like the Arkansas Family Council. 

Criminal Justice: The state saw some encouraging reforms and movement on criminal justice issues, as well as a big step back for genetic privacy:

• DNA Databank Expansion:  Expanding DNA collection beyond those that have been convicted or even officially charged with a crime, Arkansas will now begin collecting DNA from individuals merely arrested on suspicion of capital murder, first-degree murder, kidnapping and sexual assault in the first and second degree.  As noted in a recent Congressional Research Service report, and highlighted in a New York Times article, expanding DNA collection to those not even charged with a crime raises serious Fourth Amendment concerns and is a step only a few states have ventured to take given the real possibility of a successful court challenge.

• Drug Court Expansion:  Funding was directed for the positions needed to start 10 juvenile drug courts throughout the state.  Additionally, $1.5 million in cuts for adult drug courts were replaced with money from the tobacco settlement.  The bills' sponsor, Sen. Bill Pritchard, indicated that there are 1,800 people in adult drug court treatment instead of in jail and they are functioning members of their families and society.

• Protecting Children:  $15 million in additional funding for the Division of Children and Family Services will go to hire an additional 100 workers.  The dollars are targeted to child abuse prevention.
• Prisoner Re-entry:  The Senate unanimously passed a bill to study prisoner reentry policies, but it died in the House 42-31.  This was another bill sponsored by Sen. Elliot that addresses a critical issue.  The tremendous need for better re-entry policies is being recognized nationwide, and the benefits of model policies include significant budget savings as well as improved outcomes for released prisoners.

Education:  Arkansas has been working to improve its education system for many years after the state Supreme Court ruled that the state was not living up to its constitutional obligation to provide an adequate education to Arkansas students.  This year the state passed several additional reforms:

• SB 889 strengthens monitoring of school poverty funding.
• HB 2164 reforms the Commission on Closing the Achievement Gap. 
• SB 943 expands access to school performance and improvement data. 
• HB 2163 allows the Arkansas Department of Education to intervene in under-performing school districts faster. 

Environment and Clean Energy:   However, as Rep. Kathy Webb put it, "I think that the utilities put every single thing they had into fighting [commission recommendations]" and all but one major initiative failed to pass.

• The failed measures included two key recommendations: HB 1903 to established an energy savings goal for utilities and a Renewable Energy Portfolio, HB 1851, which would have required electric utilities to purchase some energy from renewable sources. 
• One measure recommended by the Global Warming Commission that did pass is HB 1663 by Webb, which calls for a 20 percent reduction in energy use in state buildings by 2014 and a 30 percent reduction by 2017.  
• Lawmakers also passed bills to extend a legislative task force on sustainable building design and practices (SB 440); create a design program for sustainable buildings (SB 746, SB 747, SB 921); create an alternative energy commission (HB 1796); and license electric autocycles for street use (HB 1902).
• A new tax credit was created for people who provide a conservation easement (HB 1577).  It is aimed at protecting wetland and riparian areas around streams that are a critical habitat for many species.  The bill received the backing of 30 to 35 environmental entities and passed out of both chambers without a dissenting vote.

Good Government Reforms:

• National Popular Vote: The House passed the National Popular Vote Compact, but action was not taken in the Senate.
• Political Advertisements:  HB 1019 requires disclosure of the sponsor of paid broadcast political electioneering advertisements.
• Lobbyist Meal Restriction:  Legislation will bans lobbyists from paying for lawmakers' meals or drinks when the lobbyists are not actually present.

Immigration:  HB 799 to allow undocumented graduates from an Arkansas high school to pay in-state tuition at public colleges in the state did not pass the Senate, and was recommended for study in the Interim Committee on Education at the end of the session. It was not introduced in the House. Unfortunately, HB 1860 , which shortens the period that drivers licenses for immigrants are valid, was signed and enacted.

Other Legislation of Note:

• Foster Care Transitional Planning:  SB 359, by Sen. Sue Madison, provides that every child transitioning from foster care due to reaching maturity shall be "provided the opportunity to be actively engaged in the planning of his or her future."  The bill details a number of requirements for the state in helping foster children obtain health care, housing, employment and additional education; as well as providing them with records held by the state and essential documents such as birth certificates and social security cards.
• Tax Refund Loans:  HB 2203 requires anyone offering so-called “advances” on tax refunds to disclose to the customer any fees that apply, and that the customer is receiving a short-term loan and may have to pay extra fees if the refund is late.  The law also prohibits certain practices, such as requiring a consumer to enter into a loan agreement in order to complete a tax return.
• Consumer Report Credit Freeze:  HB 1037 authorized a consumer to freeze their credit report in the event of identity theft.

With a relatively productive session, lawmakers in Arkansas are feeling positive about their work this year.  Usually they wouldn't return to session until 2011, but a 2008 constitutional amendment requires the Legislature to hold a fiscal session in even-numbered years, the first of which will convene next February under rules adopted this year.  Before leaving for the year senators elected Sen. Paul Bookout, as Senate president pro tem for the 2011 session.  Legislators also gained some notoriety this session for their expanded use of digital communications.