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Businesses Focus on Transportation / Better Roads, Railroads and Mass Transit Near the Top of Groups' Legislative Wish Lists

Posted on: Monday, 6 March 2006, 12:01 CST

By GRE EDWARDS

Virginia's business community says the state's economy must move into the future on a better transportation system.

Securing better roads, railroads, mass transit and transportation of all kinds is at or near the top of most groups' legislative wish list. Perhaps the only thing at issue is how to pay for transportation improvements that are widely regarded as needed.

"It's going to take some serious money to make a difference," said

Stephen Haner, a legislative consultant for the Virginia Chamber of Commerce.

One study, Vtrans 2025, conducted by Virginia's transportation agencies, has identified more than a $100 billion shortfall over the next 20 years in meeting the state's transportation needs.

Business lobbyists also will be occupied with several other high- profile issues in the General Assembly session that starts Wednesday, including:

--the development of a state energy plan that encompasses support for offshore natural-gas production;

--a bill that would allow Verizon and others to bypass local franchise negotiations to get into the cable television business;

--tax reform, including elimination of Virginia's estate tax and a phase-out of local machinery-and-tools taxes, being sought by manufacturers;

--measures to protect the right of Vir- ginia's small farm wineries to self-distribute their products, which they say is critical to their survival;

--a proposal to increase the vehicle tax from 3 cents on the dollar to 4 cents - a 33 percent increase; and

--efforts to prohibit property condemnation laws from being used purely for economic development reasons.

From the consumer standpoint, a bill has already been introduced by Del. Robert Tata, R-Virginia Beach, that would allow individuals to freeze access, with some exceptions, to their credit reports. The measure, which consumer groups support and the business community opposes, would help protect consumers from identity theft and unwanted credit offers.

Another consumer bill would strengthen regulation of payday-loan businesses. The Virginia Citizens Consumer Council also hopes for legislation to deal with the proliferation of car-title loan businesses, said council President Irene Leech.

Still, transportation promises to be the hottest business issue of the 2006 General Assembly.

The funding debate will pit anti-tax lawmakers against those seeking a more aggressive solution to transportation problems.

Incoming Gov. Timothy M. Kaine's transportation proposals, which have yet to be announced, will play a key role in the debate.

State chamber President Hugh Keogh said all means of closing the transportation funding gap should be on the table for discussion, but that a gasoline-tax increase should not be considered until all other sources of revenue have been exhausted.

Increased use of tolls on existing and new roads and of public- private partnerships are under consideration, and legislation is already in the works that would direct more sales-tax revenue to transportation.

Gordon Dixon of the National Federation of Independent Business, which represents small business, said his group, like the state chamber, supports a constitutional amendment that would prevent lawmakers from raiding Virginia transportation funds for nontransportation purposes.

Dixon said his group believes that many transportation problems can be solved by better money management and in the past has opposed tolls and gasoline-tax increases.

High on the legislative agenda of Virginia manufacturers is development of a state energy plan.

A joint legislative subcommittee studying the future of Virginia manufacturing will consider energy legislation drawn up by the panel's chairman, Sen. Frank W. Wagner, R-Virginia Beach, at its meeting on Tuesday.

Wagner's proposal would throw state support behind lifting a federal moratorium on offshore energy development. It also would identify sites for windmills, nuclear plants and other energy projects that would be exempt from local zoning. The measure would provide incentives for efficient and innovative energy use.

The proposal also will come before the Virginia Coal and Energy Commission for its endorsement on Jan. 17.

Telephone giant Verizon Communications is behind a bill that would allow it and other competitors of local TV cable companies to bypass local cable franchise negotiations.

Cable companies, including Comcast in the Richmond area, say the measure would allow competitors to avoid having to serve poor or less-populated areas but Verizon says that is not the case.

Consumer advocate Leech said competitors for cable customers should be playing by the same rules and have the same obligation to serve all customers as well as to public facilities such as schools and rural health clinics.

If the telecommunications market is going to be restructured to provide phone, cable and Internet services over a single line, an obligation to provide universal service is needed for all competitors, she said.

Besides transportation improvements and development of a state energy policy, the Virginia Manufacturers Association is focusing on tax reform and intellectual-property issues during the upcoming session.

The trade group is backing legislation that would phase out the machinery-and-tools tax that most local governments levy on industries.

Officials with the Virginia Municipal League and Virginia Association of Counties have said those organizations will oppose a phase-out of that tax, which generates nearly $200 million annually in revenue.

Brett Vassey, the VMA's president and chief executive officer, said the ongoing loss of manufacturing jobs in Virginia should indicate to lawmakers that the current tax structure puts the state's manufacturers at a competitive disadvantage.

"It would make Virginia so much more competitive to be one of the 14 states that don't tax machinery," he said.

The VMA also is backing a bill that would make it easier for industries to retain intellectual property rights for research performed at state universities under contract with private sector companies.

Also of interest:

--The Virginia Retail Merchants Association and other business groups are throwing their support behind at least two measures that would create sales-tax holidays. One would provide a four-day period yearly in August when certain school supplies and school clothing would be exempt from sales tax. Another would provide a period in October when purchases of energy-efficient products would be exempt.

--Del. Terry G. Kilgore, R-Scott, is sponsoring a measure that would allow unregulated, on-farm food sales direct to the consumer.

--A measure, introduced by Del. Robert G. Marshall, R-Prince William, would set a goal that 40 percent of purchases by Virginia public bodies be made from small, women-owned and minority-owned businesses.

--Various organizations that represent small businesses are pushing for laws that would help corral health-care costs. The independent business group's Dixon said that could include setting up insurance pools for small businesses and changing the state's Medicaid program.

Contact staff writer Greg Edwards at gedwards@timesdispatch.com or (804) 649-6390. Staff Writers John Reid Blackwell and Jeffrey Kelley contributed to this report.

MEMO: GENERAL ASSEMBLY 2006

Source: Richmond Times - Dispatch

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