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General Assembly Special Session Recap

Virginia lawmakers returned to Richmond Monday to continue their Special Session of the General Assembly. They worked into the night to repeal a state budget provision that delayed a portion of sales tax revenues from being deposited into the transportation trust fund for one year.  The provision had originally been passed to help close a 2.4-billion-dollar revenue shortfall.

Senate Finance Committee co-chairman Walter Stosch explained why they were revising the provision:

"Upon inquiry by bond council and others who are interested, they indicated that that may result in some problem with some respect to the issuance of bonds. That particular position was not shared by the administration or our council but in an abundance of caution, the House of Delegates offers this particular substitute that removes that provision. So the net effect is there’s a 49 million dollar change in the two budget documents the one that you voted on versus the one before you now – and in affect that action that was proposed has been reversed so there is no delay in the transfer of those sales tax dollars."

But House opponents argued that the General Assembly had already activated a so-called “kill switch” that would repeal all of the tax increases in last year’s transportation funding law. The “kill switch” is triggered if lawmakers DIVERT any designated funds for transportation.  But the bill’s supporters argued that these were intergovernmental transfers that did not trigger the kill switch. Ultimately, the legislation passed both houses with only a single “No” vote.  Under the bill, state agencies will need to find other spending reductions to close any revenue shortfall that results.  

Both houses also passed legislation to potentially delay the cancelation of health insurance plans in Virginia that were scheduled to be terminated because they do not meet the requirements of the federal Affordable Care Act. The bills authorize health insurance companies to offer to renew their existing health benefit plans, but DO NOT REQUIRE that insurance carriers renew the plans.  Delegate Jennifer McClellan said the delay in passing such legislation has probably caused many Virginians to already lose their current policies.

“The fact is, many of these plans have already been terminated, canceled, or changed – and most people have already enrolled in what their healthcare plan is going to be for the next year. So let’s not mislead anybody – probably, in the short term, this bill is not going to do anything. But because it doesn’t do any harm, and it might help next year, I think we should pass it. But don’t mislead your constituents that this is a cure-all – it’s not.”

Delegate Peter Farrell said this bill will definitely help those impacted in the future by a federal rule that will re-define how many employees a “small” business can have.

“If we don’t pass it, they will get slammed with higher-cost health insurance because the threshold will change for those between 50-100 employees. If you pass this bill, it buys them time – and it buys them more time – and quite frankly, the President’s administration is fine with this concept. I encourage you to pass the bill; it is a good bill.”

The bills have an emergency clause, so they will take effect as soon as Governor McAuliffe signs them into law. Both houses also selected a number of Circuit, District, and Juvenile and Domestic Relations Court judges. But they postponed votes to fill vacancies on the Virginia Supreme Court and the Virginia Court of Appeals because Senate Republicans want to interview additional candidates for the higher court positions.

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