Potentially Sticky Issues Anticipated in Coming General Assembly Session

Few anticipate General Assembly sessions with glee.  Most approach them with caution.  Architects fall into the latter group.

Why?  Because architects are licensed by the state, regulated by the state, and often find their fate affected by the state.  In the upcoming session, the Joint Legislative Committee and its legislative counsel anticipate a few sticky issues arising.

Among the most likely will be swapping the ever unappealing business, occupational and professional license (BPOL) gross-receipts tax for a tax on services and another attack on the Virginia Public Procurement Act (VPPA) and its provision for qualifications-based selection of professionals.

Early discussions indicated that a tax swap would aim to be revenue neutral.  This means that revenues from a service tax would be designed to equal the revenue raised from the BPOL tax.  The difficulty is that the BPOL tax is a local tax, assessed, collected and allocated as the locality wishes.  The state establishes the maximum rate for each business class — 58 cents per $100 of receipts for architects — and the locality may set its assessment anywhere from zero, as several do, to the maximum.

Through the VPPA, the General Assembly in the early 1980s required for all public bodies a different method for procuring professional services.  For goods and non-professional services, price could be the determining factor.  For professional services, the public body — state agencies; quasi-public authorities; school boards; cities, counties and towns; etc. — must first determine what firms are qualified without consideration of price.

To do this, public bodies are required to request proposals that describe the professional firm’s methods and capabilities for handling a specific project or project type.  The initial request for a proposal cannot ask for fee information.  In this way, the public entity can trim the list of potential providers to only those it believes are most qualified.

At that point, the agency or locality begins to discuss the details of the project, outlining, defining, and refining the specific scope and limitations of what is expected of the professional firm.  When that scope is suitably understood and agreed upon by both the agency or locality and the firms, the firms are ranked.

The public entity then begins negotiations with its top-ranked firm.  If a suitable price cannot be reached, negotiations are formally ended and negotiations begin with the second-ranked firm.

The federal government and most state governments have employed this system for decades as it has proved the best system to provide transparency in the procurement process and lessen the chances of favoritism.

 

 

2012 Legislative Summary

Written by Williams Mullen

Overview of Legislation of Interest to the Virginia Society of American Institute of Architects

Eminent domain and public procurement occupied much of the lobbying effort during the 2012 legislative session for the VSAIA.  In addition to monitoring the progress of hundreds of individual bills and providing comments on several minor issues, we were actively engaged on several major topics, which are listed below:

Eminent Domain

This year the General Assembly considered the final passage of a constitutional amendment that would restrict the use of eminent domain and provide greater compensation for “lost profits” and “lost access” once land is taken by a public entity. We lobbied hard to ensure legislators considered the effect the constitutional amendment would have on public procurement projects that required the use of condemnation. As direct providers of professional services to state and local governments, we lobbied to have the legislation delayed by an additional year to make sure the language in the amendment did not have any unintended consequences. The greatest concern for providers of professional services was that the amendment would significantly increase the cost of projects, expose public entities to costly litigation, and delay the development of major state and local projects.

Although a large number of business groups recommended the amendment be delayed an additional year, we were unable to overcome the urgency legislators expressed to get this amendment passed. Our comments, as well as those from realtors, homebuilders, public service companies, road builders, and local governments were taken into account in a separate bill that was introduced to provide greater definition to the terms “lost profit” and “lost access”. The changes made to this bill were a good compromise and provided a greater level of certainty to the condemnation proceedings and subsequent compensation process.

The sense of urgency and political drive behind this amendment is the lingering backlash from the 2005 Supreme Court case, Kelo v. City of New London, in which the Court upheld a condemnation where land was taken by a local government and transferred directly to a private corporation for ‘economic development’ purposes. Although the General Assembly immediately amended the Code to prevent this type of taking in Virginia, legislators remained fearful the law might be diluted in future legislative sessions and sought to provide further protections in the Virginia Constitution.

As part of the process of amending the Virginia Constitution, citizens will vote in a statewide referendum in the November elections to approve or reject the amendment.

Procurement Preferences

Several bills introduced sought to provide some form of bid match or quantitative scoring preferences for companies participating in public procurement projects. Listed below is a summary of the procurement preferences and mandates that were proposed during the 2012 Session:

  • Bid match preference for companies located within a locality (for local procurement);
  • Bid match preference for companies located within Virginia (for state procurement);
  • Requirements that steel and other manufactured goods used in construction projects be produced in the US; and
  • Requirement that a certain portion of new jobs created be filled with local residents.

We are glad to report we were successful in working with a number of other industries and companies to defeat these measures. Although many legislators were sympathetic to the use of local companies and local products, we made a compelling case that these efforts would increase the cost of procuring goods and professional services, as well as trigger ‘reciprocity’ provisions in other states.

Exemptions from Public Procurement Laws

In addition to the above procurement preferences, the General Assembly also considered changing the rules for local procurement of professional services. Driving this effort was the Governor’s Office and a series of recommendations generated by the Governor’s Task Force on Local Mandates. The Task Force came forward with hundreds of local mandates that local governments considered a burden or unnecessary. One of the specific recommendations made by local governments was that they should be allowed greater flexibility and leniency in the procurement of professional services. Current law requires local governments to follow state procurement guidelines and use competitive negotiation for any contract over $50,000. The Task Force recommendation sought to raise this limit to $100,000. After several meetings with legislators and the Governor’s Office we brokered a deal that allowed the threshold to be raised to $60,000. This was a hard-fought victory and we believe the effort put forth to prevent changes in procurement procedures will make the proponents think twice before introducing similar legislation in the near future.

As in the past, the VSAIA is joined in its legislative efforts on the Joint Legislative Committee by members of the American Council of Engineering Companies/Virginia and the Virginia Society of Professional Engineers.  The lobbying effort is led by Reggie Jones Esq. and Patrick Cushing Esq., both from Williams Mullen.  Architects on the committee were David Puckett AIA and Tom Heatwole AIA.

Below, please find a more complete description of several of the bills followed by our team.  Those bills that were labeled as “left in committee,” “tabled,” “continued to 2013,” or similar language were killed for this year and might not return in 2013.  You can find more information on each measure by clicking on the blue hyperlinks below:

1.   HB 5 Constitutional amendment; taking or damaging of private property for public use (voter referendum).

Chief patron: Bell, Robert B.

Summary as passed House:

Constitutional amendment (voter referendum); taking or damaging of private property; public use.  Provides for a referendum at the November 6, 2012, election to approve or reject an amendment that revises the prohibition on the enactment by the General Assembly of laws whereby private property may be taken or damaged without just compensation. The bill is identical to SB 240.

03/01/12 House: Signed by Speaker
03/03/12 Senate: Signed by President
03/14/12 House: Bill text as passed House and Senate reprinted (HB5ER)
04/09/12 Governor: Approved by Governor-Chapter 684 (effective 7/1/12)
04/09/12 Governor: Acts of Assembly Chapter text (CHAP0684)

2.   HB 228 Income tax, corporate; credit for contracting with small or minority-owned businesses.

Chief patron: Habeeb

Summary as introduced:
Tax credit for contracting with small or minority-owned, veteran-owned, or women-owned businesses.  Establishes a corporate income tax credit beginning January 1, 2013, for federal contractors with at least 250 full-time employees that subcontract with small or minority-owned, veteran-owned, or women-owned businesses to perform federal government contract work. The tax credit would equal five percent of the amount paid by the federal contractor under the subcontract to the small or minority-owned, veteran-owned, or women-owned business. The small or minority-owned, veteran-owned, or women-owned business would be required to perform all subcontract work in a Historically Underutilized Business Zone or a state enterprise zone.

Tax credits would be capped at $10 million each fiscal year. The tax credit would sunset on December 31, 2017.

01/10/12 House: Prefiled and ordered printed; offered 01/11/12 12103226D
01/10/12 House: Referred to Committee on Finance
01/12/12 House: Assigned Finance sub: Subcommittee #3
01/27/12 House: Impact statement from TAX (HB228)
02/06/12 House: Continued to 2013 in Finance

3.   HB 334 Public Procurement Act; bid match preference for State businesses.

Chief patron: Villanueva

Summary as introduced:
Virginia Public Procurement Act; bid match preference for Virginia businesses.  Provides a bid match preference for Virginia business in procurements up to $100,000. Under the bill, a Virginia business has an opportunity to match the lowest bid of an out-of-state bidder if the bid of a Virginia business is within five percent or $10,000 of the lowest bid of an out of state bidder, whichever is less.

01/13/12 House: Assigned GL sub: #2 FOIA/Procurement
01/18/12 House: Impact statement from DPB (HB334)
02/09/12 House: Subcommittee recommends continuing to 2013 with amendment(s)
02/09/12 House: Committee amendment
02/09/12 House: Continued to 2013 with amendment(s) in General Laws

4.   HB 390 General Assembly; creation of new regulatory program, etc.

Chief patron: Gilbert

Summary as introduced:
General Assembly; creation of new regulatory program; study by the Board for Professional and Occupational Regulation.  Provides that no bill that would result in the creation of a new regulatory program or a change in the level of regulation of a profession or occupation shall be considered in any session of the General Assembly unless the bill contains subsequent enactment clauses that (i) require the Board for Professional and Occupational Regulation to determine the need for the new regulatory program or change in the level of regulation and (ii) provide that the bill shall not become effective unless reenacted by the next legislative session immediately following the legislative session in which the bill was first enacted. The bill requires the Board for Professional and Occupational Regulation to submit a report of its findings to the chairmen of the standing committees having subject matter jurisdiction on or before December 1 of the year in which the bill was first enacted. The bill further provides that it only applies to a new regulatory program or a change in the level of regulation of a profession or occupation for which the Department of Professional and Occupational Regulation or a regulatory board within the Department is or would be responsible.

01/10/12 House: Prefiled and ordered printed; offered 01/11/12 12100991D
01/10/12 House: Referred to Committee on Rules
01/17/12 House: Impact statement from DPB (HB390)
01/31/12 House: Tabled in Rules

5.   HB 449 Virginia Public Procurement Act; preferences by localities, etc.

Chief patron: Toscano

Summary as introduced:

Virginia Public Procurement Act; preferences by localities, public institutions of higher education, and regional public bodies.  Allows a locality to give a procurement preference for goods, services, and construction produced in the locality or by persons, firms, or corporations having principal places of business in the locality. The bill also allows public bodies that are public institutions of higher education or regional public bodies to give such a preference to goods, services, and construction produced in the localities in which the institution or regional public body is located. Currently such preference is allowed only in the case of a tie.

01/10/12 House: Prefiled and ordered printed; offered 01/11/12 12103400D
01/10/12 House: Referred to Committee on General Laws
01/13/12 House: Assigned GL sub: #2 FOIA/Procurement
02/02/12 House: Subcommittee recommends laying on the table
02/14/12 House: Left in General Laws

6.   HB 529 Virginia Public Procurement Act; preference for local products and firms.

Chief patron: McQuinn

Summary as introduced:
Virginia Public Procurement Act; preference for local products and firms; applicability. Authorizes localities to apply a preference for bidders or offerors located in the locality of up to 10 percent, provided (i) for competitive sealed bidding the percentage of the discount is stated in the Invitation to Bid, (ii) for competitive negotiations the percentage of the increase is stated in the Request for Proposal, and (iii) the discount percentage or increase percentage is included in the informal solicitation for small purchase.

01/10/12 House: Referred to Committee on General Laws
01/18/12 House: Impact statement from DPB (HB529)
01/27/12 House: Assigned GL sub: #2 FOIA/Procurement
02/02/12 House: Subcommittee recommends laying on the table
02/14/12 House: Left in General Laws

7.   HB 530 Virginia Public Procurement Act; permissive contract provisions for localities.

Chief patron: McQuinn

Summary as introduced:
Virginia Public Procurement Act; permissive contract provisions for localities; resident employment.  Authorizes any locality to include in its contracts a provision requiring the contractor to ensure that a specified percentage, not to exceed 20 percent, of the work under the contract be performed by residents of the locality.

01/10/12 House: Referred to Committee on General Laws
01/18/12 House: Impact statement from DPB (HB530)
01/27/12 House: Assigned GL sub: #2 FOIA/Procurement
02/02/12 House: Subcommittee recommends laying on the table
02/14/12 House: Left in General Laws

8.   HB 597 Eminent domain; definitions of lost profits and access.

Chief patron: Crockett-Stark

Summary as introduced:

Eminent domain; lost profits and access.  Provides definitions for the terms “lost profits” and “lost access” and how to determine the amount of just compensation, which includes lost profits and lost access resulting from the taking, that must be paid for property taken by eminent domain. The bill has a contingent effective date of January 1, 2013, provided that the voters approve an amendment to Section 11 of Article I of the Constitution of Virginia at the 2012 November election. This bill was incorporated into HB 1035.

01/10/12 House: Referred to Committee for Courts of Justice
01/13/12 House: Assigned Courts sub: Civil
02/01/12 House: Impact statement from DPB (HB597)
02/01/12 House: Subcommittee recommends incorporating (HB1035-Joannou)
02/03/12 House: Incorporated by Courts of Justice (HB1035-Joannou)

9.   HB 938 Military training, etc.; regulatory boards to accept as equivalent to requirements for licensures.

Chief patron: Lingamfelter

Summary as passed House:

Professions and occupations; qualifications for licensure; substantially equivalent military training and education.  Requires the regulatory boards within the Department of Professional and Occupational Regulation, the Department of Health Professions, or any board named in Title 54.1 except the Board of Medicine and the Board of Dentistry, to accept the military training, education, or experience of a service member returning from active military service in the armed forces of the United States, to the extent that such training, education, or experience is substantially equivalent to the requirements established by law and regulations of the respective board for the issuance of any license, permit, certificate, or other document, however styled or denominated, required for the practice of any business, profession, or calling in the Commonwealth. The bill provides that to the extent that the service member’s military training, education, or experience, or portion thereof, is not deemed substantially equivalent, the respective board shall credit whatever portion of the military training, education, or experience that is substantially equivalent toward meeting the requirements for the issuance of the license, permit, certificate, or other document. The bill authorizes a regulatory board to require the service member to provide such documentation of his training, education, or experience as deemed necessary to determine substantial equivalency. The bill defines the term “active military service.”

02/29/12 House: Impact statement from DPB (HB938ER)
02/29/12 House: Signed by Speaker
03/01/12 Senate: Signed by President
04/04/12 Governor: Approved by Governor-Chapter 524 (effective 7/1/12)
04/04/12 Governor: Acts of Assembly Chapter text (CHAP0524)

10.    HB 1035 Eminent domain; definitions of lost access and lost profits, determining compensation.

Chief patron: Joannou

Summary as passed:

Eminent domain; lost profits and access.  Provides definitions for the terms “lost profits” and “lost access” and how to determine the amount of just compensation, which includes lost profits and lost access resulting from the taking, that must be paid for property taken by eminent domain. The bill has a contingent effective date of January 1, 2013, provided that the voters approve an amendment to Section 11 of Article I of the Constitution of Virginia at the 2012 November election. This bill incorporates HB 597 and is identical to SB 437.

03/06/12 House: Signed by Speaker
03/08/12 House: Impact statement from DPB (HB1035ER)
03/08/12 Senate: Signed by President
04/09/12 Governor: Approved by Governor-Chapter 699 (effective – see bill)
04/09/12 Governor: Acts of Assembly Chapter text (CHAP0699)

11.    HB 1145 Virginia Public Procurement Act; preference for local businesses.

Chief patron: Sherwood

Summary as introduced:
Virginia Public Procurement Act; preference for local businesses. Allows a locality to give a procurement preference to persons, firms, or corporations having principal places of business in the locality if such bidder’s bid is within five percent of the lowest bid. The bill provides that prior to awarding a contract under the preference, the locality must certify in writing that (i) exercising the preference provides goods, services, and construction comparable in quality to that of other non-local bids and (ii) using a local business provides beneficial economic effects in the community through creating and sustaining local jobs and by generating local tax revenues.

01/16/12 House: Referred to Committee on General Laws
01/19/12 House: Impact statement from DPB (HB1145)
01/27/12 House: Assigned GL sub: #2 FOIA/Procurement
02/02/12 House: Subcommittee recommends laying on the table
02/14/12 House: Left in General Laws

12.    HB 1167 High Performance Buildings Act; created.

Chief patron: Jones

Summary as passed House:

High Performance Buildings Act.  Requires executive branch agencies and institutions entering the design phase for the construction of a new building greater than 5,000 gross square feet in size, or renovating such a building where the cost of renovation exceeds 50 percent of the value of the building, to conform to Virginia Energy Conservation and Environmental Standards developed by the Department of General Services considering the U.S. Green Building Council (LEED) green building rating and other appropriate requirements. Exemptions from the requirement may be granted by the Director of the Department of General Services upon a finding of special circumstances that make construction or renovation to the standards impracticable. The bill incorporates HB 788.

04/18/12 House: Signed by Speaker as reenrolled
04/18/12 Senate: Signed by President as reenrolled
04/18/12 House: Reenrolled bill text (HB1167ER2)
04/18/12 Governor: Approved by Governor-Chapter 793 (effective 7/1/12)
04/18/12 Governor: Acts of Assembly Chapter text (CHAP0793)

13.    HB 1187 Noncompetition agreements; prohibits contract that serves to restrict an employee from engaging.

Chief patron: Hope

Summary as introduced:
Noncompetition agreements.  Makes unlawful any contract that serves to restrict an employee or former employee from engaging in a lawful profession, trade, or business of any kind. Exceptions are created for persons selling a business, former partners in a partnership, and former members in a limited liability company, who agree to refrain from carrying on a similar business within a specified geographic area in which the original entity carries on business.

01/18/12 House: Presented and ordered printed 12104107D
01/18/12 House: Referred to Committee on Commerce and Labor
01/31/12 House: Assigned C & L sub: #1
02/07/12 House: Subcommittee recommends laying on the table
02/14/12 House: Left in Commerce and Labor (0-Y 0-N)

14.  HB 1193 Public procurement; posting by local public bodies of procurement opportunities.

Chief patron: Villanueva

Summary as introduced:
Public procurement; posting by local public bodies of procurement opportunities.  Requires local public bodies to post required procurement notices on the Department of General Services’ central electronic procurement website and makes newspaper publication optional. Currently, only state public bodies are required to post procurement notices on the Department of General Services’ central electronic procurement website.

02/14/12 House: Read third time and passed House (78-Y 21-N)
02/14/12 House: VOTE: PASSAGE (78-Y 21-N)
02/15/12 Senate: Constitutional reading dispensed
02/15/12 Senate: Referred to Committee on General Laws and Technology
02/27/12 Senate: Passed by indefinitely in General Laws and Technology (10-Y 4-N)

15.     HB 1295 State mandates; eliminating on local and regional government entities relating to education, etc.

Chief patron: Byron

Summary as passed:

Elimination of certain state mandates on local entities. Eliminates several statewide mandates on local government and regional government entities.  The bill does the following: (i) removes the requirement that surplus property be offered to political subdivisions or volunteer fire and rescue squads before being sold at a public sale or auction, (ii) raises the ceiling for professional service contracts that a locality may enter without competitive negotiation to $60,000 from $50,000, (iii) eliminates the requirement that a lease of property owned by any political subdivision, or privately owned, licensed public use airport be approved by the Department, (iv) removes the requirement for localities to obtain VDOT approval for red light camera locations, (v) clarifies that the local courts cannot require localities to construct a new or additional courthouse, (vi) eliminates requirements for reporting Urban Development Areas to the Commission on Local Government, (vii) removes the requirement for establishing local advisory committees on gifted education and the annual reporting by such committees, (viii) eliminates the requirement to provide the estimated per pupil cost for public education of individual school to each parent or guardian of the enrolled child, (ix) removes the requirement that proceeds from the sale of local education surplus property be applied to capital improvements, (x) eliminates the requirement to establish a school health board, (xi) removes annual contract requirements for community service boards, (xii) eliminates Internet policy mandates on local libraries, (xiii) changes requirement to give first priority for vending contracts to the blind from mandatory to a local option, and (xiv) repeals the requirement for civics training for teachers in order to renew license. The bill also makes technical changes. The bill is identical to SB 679.

04/18/12 House: Signed by Speaker as reenrolled
04/18/12 Senate: Signed by President as reenrolled
04/18/12 House: Reenrolled bill text (HB1295ER2)
04/18/12 Governor: Approved by Governor-Chapter 805 (effective 7/1/12)
04/18/12 Governor: Acts of Assembly Chapter text (CHAP0805)

16.    HJ 3 Constitutional amendment; taking or damaging of private property for public use (second reference).

Chief patron: Bell, Robert B.

Summary as introduced:
Constitutional amendment (second resolution); taking or damaging of private property; public use.  Revises the prohibition on the enactment by the General Assembly of laws whereby private property may be taken or damaged. An existing provision authorizing the General Assembly to define what constitutes a public use is removed. The proposed amendment provides that private property can be taken or damaged only for a public use, only with just compensation to the owner, and only so much taken as is necessary for the public use. Just compensation must equal or exceed the value of the property taken, lost profits and lost access, and damages to the residue caused by the taking. A public service company, public service corporation, or railroad exercises the power of eminent domain for public use when such exercise is for the authorized provision of utility, common carrier, or railroad services. In all other cases, a taking or damaging of private property is not for public use if the primary use is for private gain, private benefit, private enterprise, increasing jobs, increasing tax revenue, or economic development, except for the elimination of a public nuisance existing on the property. The condemnor bears the burden of proving that the use is public, without a presumption that it is.

03/15/12 House: Bill text as passed House and Senate (HJ3ER)
03/15/12 House: Signed by Speaker
03/17/12 Senate: Signed by President
04/09/12 House: Assigned Chapter 736 (effective – see bill)
04/10/12 Governor: Acts of Assembly Chapter text (CHAP0736)

17.     SB 160 High Performance Buildings Act; created.

Chief patron: Petersen

Summary as passed:

High Performance Buildings Act.  Requires executive branch agencies and institutions entering the design phase for construction of a new building greater than 5,000 gross square feet in size, or renovating such a building where the cost of renovation exceeds 50 percent of the value of the building, to conform to Virginia Energy Conservation and Environmental Standards developed by the Department of General Services considering the U.S. Green Building Council (LEED) green building rating standard, the Green Building Initiative “Green Globes” building standard, and other appropriate requirements. Exemptions from the requirement may be granted by the Director of the Department of General Services upon a finding of special circumstances that make construction or renovation to the standards impracticable.

03/01/12 House: Signed by Speaker
03/03/12 Senate: Signed by President
03/04/12 Senate: Impact statement from DPB (SB160ER)
04/09/12 Governor: Approved by Governor-Chapter 680 (effective 7/1/12)
04/09/12 Governor: Acts of Assembly Chapter text (CHAP0680)

18.    SB 236 Virginia Public Procurement Act; multiple project contracts for services relating to construction.

Chief patron: Colgan

Summary as passed Senate:

Virginia Public Procurement Act; multiple project contracts for architectural or professional engineering services relating to construction.  Raises, for certain local public bodies, the maximum cost of all projects in one contract term of a multiple project contract from $500,000 to $1.5 million, and raises the maximum cost for any single project from $100,000 to $500,000 for airports and aviation transportation projects. For a locality or authority or sanitation district with a population in excess of 80,000, the bill raises the maximum cost from $1 million to $2 million.

02/16/12 House: Referred to Committee on General Laws
02/20/12 House: Assigned GL sub: #2 FOIA/Procurement
02/20/12 Senate: Impact statement from DPB (SB236S1)
02/28/12 House: Subcommittee recommends no action
03/10/12 House: Left in General Laws

19.    SB 240 Constitutional amendment; taking or damaging of private property for public use (voter referendum).

Chief patron: Obenshain

Summary as passed Senate:

Constitutional amendment (voter referendum); taking or damaging of private property; public use.  Provides for a referendum at the November 6, 2012, election to approve or reject an amendment that revises the prohibition on the enactment by the General Assembly of laws whereby private property may be taken or damaged without just compensation. The bill is identical to HB 5.

03/09/12 Senate: Signed by President
03/12/12 Senate: Impact statement from DPB (SB240ER)
03/14/12 Senate: Bill text as passed Senate and House reprinted (SB240ER)
04/04/12 Governor: Approved by Governor-Chapter 564 (effective 1/1/13 – see bill)
04/04/12 Governor: Acts of Assembly Chapter text (CHAP0564)

20.   SB 377 Construction projects using public funds; iron, steel, manufactured goods must be produced in USA.

Chief patron: McEachin

Summary as introduced:

Construction projects using public funds; iron, steel, and manufactured goods must be produced in the United States.  Prohibits use of state funds for construction projects, including any construction, alteration, maintenance, or repair of a public building or public works project, unless all of the iron, steel, and manufactured goods, including equipment, used in the project are produced in the United States. Under the bill an exception to the requirement is provided if the administrative head of the contracting state agency determines in writing that (i) iron, steel, and relevant manufactured goods are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality or (ii) inclusion of iron, steel, and manufactured goods produced in the United Sates will increase the costs of the overall project by more than 25 percent.

01/24/12 Senate: Assigned GL&T sub: #2
01/26/12 Senate: Impact statement from DPB (SB377)
02/13/12 Senate: Reported from General Laws and Technology with amendments (13-Y 2-N)
02/13/12 Senate: Rereferred to Finance
02/14/12 Senate: Continued to 2013 in Finance (15-Y 0-N)

21.     SB 413 Renewable energy portfolio standard program; credits for investments.

Chief PatronNorment, Jr.

Summary as passed:

Renewable energy portfolio standard program; credits for investments.  Allows any investor-owned electric utility that participates in the renewable energy portfolio standard program to meet up to 20 percent of an RPS Goal through certificates evidencing the utility’s expenses in conducting research and development activities in Virginia related to renewable or alternative energy sources. To qualify, such expenses shall either (i) be designed to enhance the participating utility’s understanding of emerging energy technologies and their potential impact on and value to the utility’s system and customers within the Commonwealth; (ii) promote economic development within the Commonwealth; (iii) supplement customer-driven alternative energy or energy efficiency initiatives; (iv) supplement alternative energy and energy efficiency initiatives at state or local governmental facilities in the Commonwealth; or (v) be designed to mitigate the environmental impacts of renewable energy projects. The State Corporation Commission shall issue certificates to utilities making qualified investments based on the prices for renewable energy certificates in the interconnection region of the regional transmission entity of which the utility is a member. Qualified investments are stated to be reasonable and prudent operating expenses of a participating utility. A participating utility is not authorized to recover the costs associated with qualified investments through rate adjustment clauses and is not authorized to earn a return on its qualified investments. A participating utility is not eligible for a research and development tax credit qualified investments made under this measure. The measure also provides that a utility shall receive double credit toward meeting the program’s goals for energy from facilities in the Commonwealth fueled primarily by animal waste.

01/11/12 Senate:  Prefiled and ordered printed; offered 01/11/12 12101998D02/02/12 Senate:  Printed as engrossed 12101998D-E03/08/12 Senate:  Bill text as passed Senate and House (SB413ER)04/09/12 Governor:  Acts of Assembly Chapter text (CHAP0717)

22.   SB 437 Eminent domain; definitions of lost access and lost profits, determining compensation.

Chief patron: Obenshain

Summary as passed:

Eminent domain; lost profits and access.  Provides definitions for the terms “lost profits” and “lost access” and how to determine the amount of just compensation, which includes lost profits and lost access resulting from the taking, that must be paid for property taken by eminent domain. The bill has a contingent effective date of January 1, 2013, provided that the voters approve an amendment to Section 11 of Article I of the Constitution of Virginia at the November 2012 election. This bill is identical to HB 1035.

03/09/12 House: Signed by Speaker
03/10/12 Senate: Signed by President
03/13/12 Senate: Impact statement from DPB (SB437ER)
04/09/12 Governor: Approved by Governor-Chapter 719 (effective – see bill)
04/09/12 Governor: Acts of Assembly Chapter text (CHAP0719)

1.   SB 525 Virginia Public Procurement Act; preference for local products and firms.

Chief patron: Marsh

Summary as introduced:
Virginia Public Procurement Act; preference for local products and firms; applicability.  Authorizes localities to apply a preference for bidders or offerors in the locality of up to 10 percent, provided (i) for competitive sealed bidding the percentage of the discount is stated in the Invitation to Bid, (ii) for competitive negotiations the percentage of the increase is stated in the Request for Proposal, and (iii) the discount percentage or increase percentage is included in the informal solicitation for small purchase.

01/11/12 Senate: Prefiled and ordered printed; offered 01/11/12 12102183D
01/11/12 Senate: Referred to Committee on General Laws and Technology
01/20/12 Senate: Impact statement from DPB (SB525)
01/24/12 Senate: Assigned GL&T sub: #2
01/30/12 Senate: Passed by indefinitely in General Laws and Technology (14-Y 0-N)

2.   SB 526 Virginia Public Procurement Act; permissive contract provisions for localities.

Chief patron: Marsh

Summary as introduced:
Virginia Public Procurement Act; permissive contract provisions for localities; resident employment.  Authorizes any locality to include in its contracts a provision requiring the contractor to ensure that a specified percentage, not to exceed 20 percent, of the work under the contract be performed by residents of the locality.

01/11/12 Senate: Prefiled and ordered printed; offered 01/11/12 12102180D
01/11/12 Senate: Referred to Committee on General Laws and Technology
01/24/12 Senate: Impact statement from DPB (SB526)
01/24/12 Senate: Assigned GL&T sub: #2
01/30/12 Senate: Passed by indefinitely in General Laws and Technology (14-Y 0-N)

3.   SB 572 Virginia Public Procurement Act; preference for local businesses.

Chief patron: Vogel

Summary as introduced:
Virginia Public Procurement Act; preference for local businesses.  Allows a locality to give a procurement preference to persons, firms, or corporations having principal places of business in the locality if such bidder’s bid is within five percent of the lowest bid. The bill provides that prior to awarding a contract under the preference, the locality must certify in writing that (i) exercising the preference provides goods, services, and construction comparable in quality to that of other non-local bids and (ii) using a local business provides beneficial economic effects in the community through creating and sustaining local jobs and by generating local tax revenues.

01/18/12 Senate: Presented and ordered printed 12103393D
01/18/12 Senate: Referred to Committee on General Laws and Technology
01/24/12 Senate: Impact statement from DPB (SB572)
01/24/12 Senate: Assigned GL&T sub: #2
01/30/12 Senate: Passed by indefinitely in General Laws and Technology (14-Y 0-N)

4.   SB 601 Public procurement; requirement that American iron, steel, etc., be used in public works projects.

Chief patron: Saslaw

Summary as introduced:
Public procurement; products manufactured in the United States.  Requires public contracts for the construction, reconstruction, alteration, repair, improvement, or maintenance of a public building or public works to contain a provision that the iron, steel, and manufactured goods used or supplied in the performance of the public contract or any subcontract are manufactured in the United States. This requirement does not apply if the requirement is inconsistent with the public interest, the products are not manufactured within the United States in sufficient and reasonably available quantities or with satisfactory quality, or using the products will increase the cost of the public contract by 25 percent or more. A person intentionally mislabeling or misrepresenting the origin of products will be ineligible to receive any other public contracts.

01/19/12 Senate: Presented and ordered printed 12101200D
01/19/12 Senate: Referred to Committee on General Laws and Technology
01/24/12 Senate: Assigned GL&T sub: #2
01/30/12 Senate: Impact statement from DPB (SB601)
02/13/12 Senate: Continued to 2013 in General Laws and Technology (14-Y 1-N)

5.   SB 620 Federal Government Contractor Grant Fund and Program; created & established for certain businesses.

Chief patron: Petersen

Summary as passed Senate:

Federal government contractor grant program.  Establishes a federal government contractor grant fund and program beginning January 1, 2013, for federal contractors with at least 250 full-time employees that subcontract with small or minority-owned, veteran-owned, or women-owned businesses to perform federal government contract work. The grant would equal five percent of the amount paid by the federal contractor under the subcontract to the small or minority-owned, veteran-owned, or women-owned business. The small or minority-owned, veteran-owned, or women-owned business would be required to perform all subcontract work in a Historically Underutilized Business Zone or a state enterprise zone. The federal government contractor grant program is contingent upon an appropriation of general funds effectuating the provisions of the bill.

The aggregate amount of grants would be capped at $10 million each fiscal year.

02/17/12 House: Referred to Committee on General Laws
02/20/12 House: Assigned GL sub: #2 FOIA/Procurement
02/22/12 Senate: Impact statement from TAX (SB620S1)
02/28/12 House: Subcommittee recommends laying on the table
03/10/12 House: Left in General Laws

6.   SB 621 State-owned buildings; DGS to establish program requiring energy efficiency data.

Chief patron: Petersen

Summary as introduced:
Department of General Services; energy efficiency data for state-owned buildings.  Provides for the Department of General Services to establish a program requiring an energy analysis of each state-owned building containing more than 50,000 square feet of usable space to identify opportunities for reduced energy use. By December 31, 2012, such buildings are required to obtain an energy efficiency score utilizing the Energy Star assessment and ratings program. The Energy Star score will be published on the Department’s website and updated annually.

01/20/12 Senate: Referred to Committee on General Laws and Technology
01/25/12 Senate: Impact statement from DPB (SB621)
02/13/12 Senate: Reported from General Laws and Technology with amendment (15-Y 0-N)
02/13/12 Senate: Rereferred to Finance
02/14/12 Senate: Continued to 2013 in Finance (15-Y 0-N)

7.   SB 651 Women-owned and minority-owned businesses; enhancement measures.

Chief patron: McEachin

Summary as introduced:
Virginia Public Procurement Act; women-owned and minority-owned businesses; remedial measures.  Provides that the Governor shall require state agencies to implement appropriate enhancement or remedial measures consistent with prevailing law when a persuasive analysis exists that documents statistically significant disparity between the availability and utilization of women-owned and minority-owned businesses.

02/13/12 House: Read first time
02/13/12 House: Referred to Committee on General Laws
02/20/12 House: Assigned GL sub: #2 FOIA/Procurement
02/28/12 House: Subcommittee recommends continuing to 2013
02/28/12 House: Continued to 2013 in General Laws

8.   SB 679 State mandates; eliminating on local and regional government entities relating to education, etc.

Chief patron: Newman

Summary as passed:

Elimination of certain state mandates on local entities. Eliminates several statewide mandates on local government and regional government entities.The bill does the following: (i) removes the requirement that surplus property be offered to political subdivisions or volunteer fire and rescue squads before being sold at a public sale or auction, (ii) raises the ceiling for professional service contracts that a locality may enter without competitive negotiation to $60,000 from $50,000, (iii) eliminates the requirement that a lease of property owned by any political subdivision, or privately owned, licensed public use airport be approved by the Department, (iv) removes the requirement for localities to obtain VDOT approval for red light camera locations, (v) clarifies that the local courts cannot require localities to construct a new or additional courthouse, (vi) eliminates requirements for reporting Urban Development Areas to the Commission on Local Government, (vii) removes the requirement for establishing local advisory committees on gifted education and the annual reporting by such committees, (viii) eliminates the requirement to provide the estimated per pupil cost for public education of individual school to each parent or guardian of the enrolled child, (ix) removes the requirement that proceeds from the sale of local education surplus property be applied to capital improvements, (x) eliminates the requirement to establish a school health board, (xi) removes annual contract requirements for community service boards, (xii) eliminates Internet policy mandates on local libraries, (xiii) changes requirement to give first priority for vending contracts to the blind from mandatory to a local option, and (xiv) repeals the requirement for civics training for teachers in order to renew license. The bill also makes technical changes. The bill is identical to HB 1295.

04/18/12 Senate: Reenrolled bill text (SB679ER2)
04/18/12 Senate: Signed by President as reenrolled
04/18/12 House: Signed by Speaker as reenrolled
04/18/12 Governor: Approved by Governor-Chapter 836 (effective 7/1/12)
04/18/12 Governor: Acts of Assembly Chapter text (CHAP0836)

9.   SJ 3 Constitutional amendment; taking or damaging of private property for public use (second reference).

Chief patron: Obenshain

Summary as passed Senate:

Constitutional amendment (second resolution); taking or damaging of private property; public use.  Revises the prohibition on the enactment by the General Assembly of laws whereby private property may be taken or damaged. An existing provision authorizing the General Assembly to define what constitutes a public use is removed. The proposed amendment provides that private property can be taken or damaged only for a public use, only with just compensation to the owner, and only so much taken as is necessary for the public use. Just compensation must equal or exceed the value of the property taken, lost profits and lost access, and damages to the residue caused by the taking. A public service company, public service corporation, or railroad exercises the power of eminent domain for public use when such exercise is for the authorized provision of utility, common carrier, or railroad services. In all other cases, a taking or damaging of private property is not for public use if the primary use is for private gain, private benefit, private enterprise, increasing jobs, increasing tax revenue, or economic development, except for the elimination of a public nuisance existing on the property. The condemnor bears the burden of proving that the use is public, without a presumption that it is.  The Resolution incorporates SJ 67 and SJ 117.

03/15/12 Senate: Bill text as passed Senate and House (SJ3ER)
03/15/12 House: Signed by Speaker
03/17/12 Senate: Signed by President
04/09/12 House: Assigned Chapter 738 (effective – see bill)
04/10/12 Governor: Acts of Assembly Chapter text (CHAP0738)

10.   SJ 67 Constitutional amendment; taking or damaging of private property for public use (second reference).

Chief patron: McDougle

Summary as introduced:

Constitutional amendment (second resolution); taking or damaging of private property; public use. Revises the prohibition on the enactment by the General Assembly of laws whereby private property may be taken or damaged. An existing provision authorizing the General Assembly to define what constitutes a public use is removed. The proposed amendment provides that private property can be taken or damaged only for a public use, only with just compensation to the owner, and only so much taken as is necessary for the public use. Just compensation must equal or exceed the value of the property taken, lost profits and lost access, and damages to the residue caused by the taking. A public service company, public service corporation, or railroad exercises the power of eminent domain for public use when such exercise is for the authorized provision of utility, common carrier, or railroad services. In all other cases, a taking or damaging of private property is not for public use if the primary use is for private gain, private benefit, private enterprise, increasing jobs, increasing tax revenue, or economic development, except for the elimination of a public nuisance existing on the property. The condemnor bears the burden of proving that the use is public, without a presumption that it is. This resolution was incorporated into SJ 3.

01/10/12 Senate: Prefiled and ordered printed; offered 01/11/12 12102332D
01/10/12 Senate: Referred to Committee on Privileges and Elections
01/31/12 Senate: Incorporated by Privileges and Elections (SJ3-Obenshain) (15-Y 0-N)

11.      SJ 117 Constitutional amendment; taking or damaging of private property for public use (second reference).

Chief patron: Deeds

Summary as introduced:

Constitutional amendment (second resolution); taking or damaging of private property; public use. Revises the prohibition on the enactment by the General Assembly of laws whereby private property may be taken or damaged. An existing provision authorizing the General Assembly to define what constitutes a public use is removed. The proposed amendment provides that private property can be taken or damaged only for a public use, only with just compensation to the owner, and only so much taken as is necessary for the public use. Just compensation must equal or exceed the value of the property taken, lost profits and lost access, and damages to the residue caused by the taking. A public service company, public service corporation, or railroad exercises the power of eminent domain for public use when such exercise is for the authorized provision of utility, common carrier, or railroad services. In all other cases, a taking or damaging of private property is not for public use if the primary use is for private gain, private benefit, private enterprise, increasing jobs, increasing tax revenue, or economic development, except for the elimination of a public nuisance existing on the property. The condemnor bears the burden of proving that the use is public, without a presumption that it is. This resolution was incorporated into SJ 3.

01/19/12 Senate: Presented and ordered printed 12104151D
01/19/12 Senate: Referred to Committee on Privileges and Elections
01/31/12 Senate: Incorporated by Privileges and Elections (SJ3-Obenshain) (15-Y 0-N)

AIA Announces National Legislative Agenda

“© 2006, The American Institute of Architects. All rights reserved.”
© 2006, The American Institute of Architects. All rights reserved.

The American Institute of Architects recently unveiled an ambitious 2012 legislative agenda that has creating jobs in the hard-hit design and construction industry as its top priority.

“Architects are by and large small businesspeople: ninety-five percent of architecture firms in the United States employ 50 or fewer people,” said AIA President Jeff Potter, FAIA, himself a small business owner. “Meeting the challenges our communities face — lost jobs, outdated and unsafe infrastructure, abandoned buildings and neighborhoods, rising energy costs, and distressed main streets — demands a strong design and construction industry that is ready and able to get back to work.

“If enacted, this agenda would go a long way towards putting our sector back on its feet to do just that,” Potter said.

The AIA’s “Plan for Economic Growth” concentrates its efforts on solving the four key economic challenges facing the profession:

Removing Barriers to Private Sector Lending   Thousands of needed construction projects that would employ millions of Americans are on hold because credit is still frozen. Banks, especially smaller community banks, want to lend but new federal regulations make it difficult. The AIA is doing its part to help make financing available with its Stalled Projects website, launched in 2011, to match building projects to investors. But Congress needs to do its part by passing legislation such as the Capital Access for Main Street Act, which would help prevent large numbers of commercial foreclosures and free up credit to help small business get back to work.

Saving Energy, Creating Jobs   Across the country, building owners, state and local governments and school districts want to lower energy bills by retrofitting their buildings. AIA member firms are answering the call by signing up for the AIA 2030 Commitment to develop plans to ensure their projects and practices meet far-reaching green goals. Congress can spur tens of thousands of more jobs by increasing the value of the Federal Energy Efficient Commercial Building Tax Deduction by increasing it from the current $1.80sf to $3.00sf and by making changes that make the deduction easier to use by more people

Helping Small Firms Grow   Small architecture firms and sole practitioners work in every community in the country to help homeowners and businesses design better buildings. But high taxes and burdensome paperwork hold them back. As Congress looks to reform the tax code and reduce the budget deficit, it needs to ensure that tax rates on small entrepreneurs are cut while preventing efforts to penalize smaller design firms.

Revitalizing America’s Neighborhoods   Crumbling infrastructure, high unemployment and rising traffic congestion have hurt our nation’s communities, reducing safety and increasing pollution. Outdated federal transportation laws and tax policies have slowed projects down, deprived the public of a voice in the planning process, and forced Americans to spend more time in their cars. Congress needs to pass transportation reform legislation this year that gives people the ability to create and sustain prosperous communities with real choices in transportation options. The AIA also urges the administration to ensure that lending standards account for the kinds of mixed-use developments that communities need in order to bring back economic vitality and jobs.

For more information, or to get involved, visit AIA Issues & Advocacy.