Delegate Mark Cole
P. O. Box 6046
Fredericksburg, VA 22403
(540) 752-8200 Delegate@MarkLCole.com
Paid for and authorized by Mark Cole for Delegate
Delegate Mark Cole
It has been my honor to represent the citizens of the 88th District in the Virginia House of Delegates since 2002. The House of Delegates is one half of the Virginia General Assembly, the other half being the Virginia Senate. The General Assembly convenes annually in January for about two months to consider legislation and the state budget. I welcome your input on any issues that may come before the General Assembly. I also encourage you to contact me should you have questions or difficulties in dealing with state agencies. I look forward to hearing from you!
THE 2010 SESSION CONVENES
The General Assembly is now in session, and will be until the middle of March. I have moved out of my office on Route 17 and will be in Richmond each day for the next two months. Our office is in room 808 of the General Assembly Building at the corner of Broad and 9th Streets. The phone number in Richmond is (804) 698-1088. If you would like to come down to visit the State Capitol during session, please let us know. We would be happy to set-up tours.
GENERAL ASSEMBLY REACHES HALFWAY POINT
-- 16 Bills and 3 Resolutions Patroned by Cole Pass the House --
Richmond , VA – February 16th was “crossover” at the General Assembly; the day that the House and Senate must complete action on their own bills. At the halfway point through the session, 16 bills patroned by Chairman Mark L. Cole (R-88th District) have passed the House or were combined with similar bills that passed, along with 3 resolutions he sponsored. Several other bills which he co-patroned also passed. The legislation has been sent to the Senate for further consideration.
Chairman Cole’s House Joint Resolution (HJ) 11 and House Bill (HB) 16 would amend the Constitution of Virginia to give the General Assembly and localities more flexibility in granting real estate property tax relief to senior citizens and the disabled. If adopted the next step would be to allow localities to change how they grant property tax relief to senior citizens and the disabled, by implementing an income “circuit breaker” system. Localities would then be able to grant relief once a taxpayer’s property taxes exceeded a percentage of their household income. “The goal is to keep senior citizens from being forced out of their homes due to rising real estate taxes,” Cole explained. Constitutional amendments must pass the General Assembly twice and then be approved by the voters before they become effective. This amendment passed last year and is on its second passage.
HJ 88 was submitted out of the growing concern over the Federal deficit and asks the US Congress to adopt an amendment to U.S. Constitution to balance the Federal budget. The national debt has exploded in recent years and now exceeds $ 12 Trillion or more than $ 113,000 per taxpayer. “Spending in Washington is out of control,” according to Delegate Cole. “We have incurred debt that we cannot possibly pay back in our lifetime. This threatens not only our economic well being, but that of our children and grandchildren. We balance our budget every year in Virginia ; it is time for the US Congress to do the same.”
Another bill deals with the loss of state sovereignty and the Interstate Commerce Clause of the U. S. Constitution. HB 18 states that goods manufactured or made in Virginia and sold to Virginians for use in Virginia shall be regulated by the state and not the U.S. Congress. “This is an attempt to get back to what I believe was the original intent of the Founders,” said Cole. “Over the years, the Federal Courts and Congress have expanded the Interstate Commerce Clause to the point where Washington now regulates practically every aspect of our lives. It is time for states to stand up and push back.”
HB 576 was submitted in response to the Federal “healthcare reform” proposals and prohibits an individual from being required to buy health insurance. It was combined with similar legislation (HB 10) which was passed by the House on a 72 to 26 vote.
HB 50 tightens the requirements for processing absentee ballots. It was brought in response to problems experienced by overseas military voters in recent elections.
Cole’s HB 57 would impose a freeze on the Business, Professional, and Occupational License (BPOL) tax. The BPOL tax was originally imposed as a way to raise funds to pay for the War of 1812. “It is a very unfair tax because it is based on a business’ gross receipts not on income or profits; so a company could be struggling or losing money and still have to pay the tax,” Cole explained. “BPOL can become a job killer, especially for small business.”
HB 17 reduces period of limitation for collection of state taxes. Currently the State can go after back taxes for up to 20 years; this bill would reduce it to 10. “I thought it was unreasonable to expect a person or small business to keep records for 20 years in order to defend themselves from an accusation from the Tax Department,” said Delegate Cole.
HB 107 was requested by local school officials and corrects an oversight in the code. Currently school superintendents are supposed to be informed whenever a juvenile student is arrested. This is so that the school may take action to protect other students if needed. However, the notice does not apply to adult students, students age 18 or older. HB 107 would require the same notice for students age 18 or older.
Another bill requested by local school officials was HB 575, which granted local school boards relief from state mandates when their state funding is being cut. “I think it is reasonable to give schools flexibility to meet the needs of students when their budgets are bring reduced,” Cole stated. The bill was combined with similar legislation (HB 111) which passed.
One bill which garnered some media attention was HB 53 which would simply ban employment and insurance discrimination against individuals who decline to get an RFID or microchip implant in their bodies. The legislation was introduced at the request of several constituents and is similar to legislation already passed in several other states including Wisconsin , California , and North Dakota . Concerns about these implants usually center in three areas: privacy, health, and religion. “The technology is here and is being used,” Cole said. “While it may be in its infancy and not yet widespread, the question is does Virginia want to be proactive and head-off potential problems by setting clear and reasonable policy regarding the use of these devices, or do we want to wait until problems arise or lawsuits are filed and then react after the fact? All sensationalism aside, I think HB 53 is good policy and will avoid future litigation.” Most Delegates apparently agreed as the legislation passed the House with strong bi-partisan support, on an 88 to 9 vote.
HB 52 deals with another oversight in the code. Currently, it is a 1st Class Misdemeanor to carry a concealed handgun without a permit – this bill would not change that. However, the law is silent as to how someone should be treated if they have been issued a permit, but do not have it on their person at the time (perhaps they left it at home or lost their wallet, etc…). When this happens, police have charged the individual as if they had no permit at all, charging them with a 1st Class Misdemeanor. HB 52 would set up a $ 25 civil penalty for someone not having their permit on their person. The penalty could be waived by the court when the person presents their permit to the court, similar to how court handles someone who forgot their driver’s license.
Other bills that passed the House are HB 51 which grants authority to local Boards of Supervisors to set time limits on how long local Planning Commissions have to review plans; HB 56 makes it easier to file for relief of duty to file an inventory or annual accounts; HB 108 sets requirements dealing with local gun “buy back” programs; HB 109 repeals local gun dealer registration requirements; HB 574 increases Virginia Life, Accident and Sickness Insurance Guaranty Association coverage (it was combined with HB 448); and HB 580 allows localities to exempt members of sheriff's volunteer units from local licensing fees.
Additionally, as chairman of the Privileges and Elections Committee Cole guided the committee as it considered 100 bills and resolutions including reviewing the Governor’s appointments to various boards and commissions.
LEGISLATION CO-PATRONED
The following is some of the legislation co-patroned by Delegate Cole which has also passed the House of Delegates and been sent to the state Senate for their consideration:
HB 42 would perform an audit of state transportation programs. The purpose of this audit is to provide an objective and independent cost savings assessment of the state’s transportation planning and programming procedures in order to provide information on ways to reduce duplication of effort and implement cost savings measures and efficiencies in the operation of state transportation programs.
HJ 33 and HB 149 would amend Virginia ’s Constitution to provide property tax relief for disabled veterans.
HB 174 expands Virginia ’s Wounded Warrior Program for military members injured in the line of duty.
HB 262 would exempts veterans from paying the Department of Business Assistance's handling fee when establishing a small business through the one-stop small business permitting program.
HB 385 allows the Governor to suspend any local mandate for a period not to exceed two years upon a finding that the locality faces fiscal stress and the suspension of the mandate would help alleviate the fiscal hardship.
HB 419 would streamline the Department of Veterans Services processing of disability claims.
HB 438 would require Soil and Water Conservation Board to establish incremental damage analysis procedure for dam safety.
HB 485 requires the Governor to conduct a performance review of all state agencies, with the goal of increasing efficiency and reducing costs.
HB 505 lifts the ban on concealed handgun permit holders from carrying concealed in restaurants that serve alcohol. They can currently carry openly in such places, but not concealed (this is a provision of the law that simply does not make sense).
HB 523 grants an income tax exemption for any gain taxed as a capital gain for federal income tax purposes that is related to a qualified investment of a technology and science start-up business.
HB 570 changes the burden of proof from the taxpayer to the assessor when a taxpayer appeals the assessment of real property to a board of equalization or to a circuit court.
HB 665 would require the Governor to provide for additional appropriations to the Transportation Trust Fund from general fund revenues in cases in which general fund revenues for a fiscal year are projected to grow by at least three percent or more.
HB 756 would direct any future revenues and royalties paid to the Commonwealth as a result of offshore natural gas and oil drilling shall be distributed as follows: (i) 70 percent to the Transportation Trust Fund, (ii) 20 percent to the Virginia Coastal Energy Research Consortium, and (iii) 10 percent to localities for improvements to infrastructure and transportation. We are still waiting for the Federal government to move forward to actually authorize any offshore drilling.
HB 787 states that it shall be the policy of the Commonwealth to support oil and natural gas exploration, development, and production 50 miles or more off Virginia's coast, taking into account the impact on affected localities, armed forces, and the mid-Atlantic regional spaceport.
HB 1050 would double the amount of the income tax credit an individual can take for long-term care insurance from 15 percent to 30 percent of the amount of the premium paid for such insurance, for taxable years beginning on and after January 1, 2012.
HB 1118 expresses the policy of the Commonwealth to exclude from taxation payments made from the Virginia Military Family Relief Fund.
HJ 125 urges Congress to honor state sovereignty under the Tenth Amendment of the Constitution of the United States and claims sovereignty for the Commonwealth under the Tenth Amendment over all powers not otherwise enumerated and granted to the federal government by the United States Constitution.
HJ 127 initiates a study of the Commonwealth's Medicaid program to identify opportunities to reduce waste, inefficiency, fraud, and abuse.
SESSION MOVING QUICKLY
Legislation is making its way through the General Assembly at a brisk pace. This year though, there are fewer pieces of legislation to consider. Members of the House of Delegates filed 1,386 bills this session, while our Senate counterparts filed 735. Though that may seem like a lot, the total actually represents a reduction in the number compared to the last 60-day, session held in 2008.
While there may be many reasons for the reduction in bills, one in particular is worth noting. The current budget situation, with the Commonwealth having less money to allocate, directly affects the number of bills that can be passed. Considering this, legislators were less likely to file legislation that would cost money. In most cases this year, those bills that would increase state spending (referred to here as “having a fiscal impact”) have been carried over to next year’s session for consideration or defeated outright.
LOCAL COMPOSITE INDEX
Governor Bob McDonnell announced that he will support updating the Local Composite Index (LCI), the formula which determines state and local education funding responsibility, in the upcoming budget. The LCI has historically always been adjusted every two years to account for changing local economic conditions. The proposal by outgoing Governor Kaine to freeze the Index was unprecedented, and would have cost certain localities in Northern Virginia and the Fredericksburg area millions in state education funding.
Speaking about his decision, Governor McDonnell stated, "For nearly forty years, the Local Composite Index has been an impartial means by which to determine state and local responsibility for education funding in Virginia . The application of this Index has always been done in an objective manner, using the most recent fiscal data to most fairly apportion state resources. For many school districts, particularly in Northern Virginia , the biennial update of the Index has meant far less funding from the state than that received by school districts in localities experiencing lesser rates of economic growth. Accordingly, I will not support the proposed freeze in the budget introduced by the previous Administration. The Local Composite Index must be applied to all localities, at all times, in the same objective and fair manner by which it has always been utilized."
McDonnell continued, "Ensuring that we have a fair formula that is implemented without regard to temporary or political considerations is the best means by which to appropriate education funding in the Commonwealth. Every time the Index is readjusted some school systems gain funding, while others receive less. This has occurred for nearly forty years, and local officials understand the routine and objective biennial implementation of the Index."
In announcing his decision to undo the freeze, McDonnell also identified specific budget savings to account for the additional state spending required. The update will cost the state $29 million in FY 2011. To cover this increased funding, McDonnell will recommend to the General Assembly the transfer of $13 million from Literary Fund balances; $8 million through the use of available balances in the Health Insurance Fund to reduce state health insurance premiums; $5.2 million will be found in Real ID savings and an available $3 million will be captured in additional Non-General Fund balances.
RAISING REVENUE
Over the years I have heard on numerous occasions how efforts to reduce taxes will “leave money on the table” or imperil our “quality of life”, as if our quality of life depended on government spending.
My House Bill 57, which would freeze the Business, Professional, and Occupational License (BPOL) tax, has sparked the latest volley in this debate, with some tax and spend politicians bemoaning how much money government could lose if my efforts to place a freeze on the tax are successful. Tax and spend politicians seem to think that the BPOL and other taxes are free money and its imposition has no effect on businesses and families that must pay these levies. The fact is that taxes remove money from the budgets of businesses and families; they are basically pay cuts for those who must pay them.
I heard from many businesses regarding the BPOL tax in general and specifically about Stafford ’s efforts to impose it. The consensus was that the BPOL would hinder their efforts to expand business and will cost local jobs. In the long run this could actually lead to less tax revenues due to suppressed economic growth.
When taxes are increased on businesses, they have two basic options to pay the tax: increase the price of their goods or services, and thereby pass along the cost of the tax to their customers – highly unlikely during a recession; or they can reduce costs in order to come up with money to pay the tax – in many cases this means fewer jobs. One small businesswoman explained to me in painful terms how she would have no choice but to layoff one of her employees if Stafford went ahead with their plans to collect the tax.
No one questions that government needs funds to ensure that we have quality schools, good roads, and safe neighborhoods; the question is, what is the most effective way to raise funds for those services? History has shown that the best way to raise long-term revenues for government services is not by imposing new taxes or raising current ones, but to adopt policies that encourage the economic growth of the private sector. More jobs equals more tax revenue.
As President John Kennedy said when he was promoting his proposals to reduce taxes in the early 1960s “an economy hampered by restrictive tax rates will never produce enough jobs or enough profits.”
Raising taxes or imposing new ones on businesses when they are already struggling is equivalent to killing the goose that laid the golden eggs. Businesses not only produce tax revenue themselves, but they employ people who in turn become taxpayers. When businesses are forced to shed jobs, government not only loses revenue from the employer, but from the employees who are laid off. It is tough to pay taxes when you don’t have a job.
But tax and spend politicians seem unconcerned about the long term negative consequences of their insatiable appetite for more taxes. Growing government is their primary concern. Only when the economy is growing and new jobs are being produced by the private sector, can the public sector enjoy increasing revenues to fund critical services.
Businesses and taxpayers are not unlimited sources of tax revenue that politicians can tap at a whim; they are not ATMs. Every tax on business is another cost burden that reduces the amount of money available to hire employees and reinvest to grow the business. Wealth and prosperity come from the private sector not the government. While it has become a cliché, it is no less true, no government has ever taxed its way into prosperity. The sooner that tax and spend politicians at all levels learn this vital lesson, the sooner we can get about the work of fixing what is ailing our crippled economy.
THE GOVERNMENT CAN
My son found video parody of what the government can do. I thought it was funny but like most good comedy, it has an element of truth. You might enjoy it.
WINTER WEATHER
For the second week in a row, the weather became a main topic of discussion throughout the Commonwealth. As it turns out, we might have paid more heed to events some 300 miles north in Jefferson County , Pennsylvania . There, America ’s most prominent weather forecasting rodent, groundhog Punxsutawney Phil, saw his shadow and proclaimed six more weeks of winter. It looks like he might be right.
The arrival of a record breaking snow storm affecting about two-thirds of the state caused has played havoc with the roads and public schedules. VDOT is doing their best to try to clear the roads, but they have simply been overwhelmed by the amount of snow.
NEW GOVERNOR
Virginia inaugurated a new governor, Bob McDonnell. Not surprisingly, he got to work very quickly. In an address to a joint session of the General Assembly on Martin Luther King Day, he laid out his priorities; making it clear that job creation and economic growth would be the chief focus of his new administration for the year ahead.
Specifically, Governor McDonnell is asking the General Assembly to pass measures and changes to the budget that will strengthen Virginia’s economy. He also made clear that he will not support tax increases, pledging to veto bills that raised taxes or a budget based on higher taxes. This marks a significant change from the previous administration. The budget proposed by former Governor Kaine included a large hike in the income tax. Last week, the House voted on that plan.
Most delegates, myself included, had already indicated they would not support higher taxes. So, it wasn’t entirely surprising that the House rejected former Governor Kaine’s plan to raise the income tax. What was somewhat surprising was the margin, as the House rejected the tax hike by a vote of 97 to 0. Not a single member of the House of Delegates voted to raise the income tax.
While the Senate has yet to weigh in on the issue of taxes, it is clear that the House and Governor McDonnell will not support higher taxes. For people already struggling to make ends meet in the current economy, this is very good news.
LEGISLATION
While the state’s budget will receive most of the attention in news pages during this session, we’re considering a lot of other legislation as well. Among the hundreds of bills that will be considered by the General Assembly are several that I am submitting. Here is an overview of some of the legislation I am sponsoring:
House Bill (HB) 576 is in response to the Federal government’s plans to force individuals to buy health insurance. It simply states that residents of Virginia shall not be required to obtain a health insurance policy. It is similar to Delegate Bob Marshall’s HB 10 and I would expect these two bills to be combined.
House Joint Resolution (HJ) 88 is a resolution asking the US Congress to adopt an amendment to U.S. Constitution to require a balanced Federal budget. The Federal budget deficit has just ballooned in the last few years and I believe threatens our long term economic stability.
HB 18 Provides that goods and services made, sold, and retained in Virginia , shall be the jurisdiction of the Commonwealth and not the Federal government. The US Constitution gives the Federal government the ability to regulate interstate commerce, commerce that crosses state boundaries. The original intent was that states would regulate commerce within their borders. Over the years Congress and the Courts have expanded Federal reach to all commerce whether it crosses a state boundary or not. It is time for the states to begin pushing back and restrict the Federal government to its original mission. The states are perfectly capable of regulating commerce within their boundaries without Federal intrusion.
HB 50 would tighten the requirements to process absentee ballots in a timely manner. In recent years some localities have had problems sending out absentee ballots and the previous administration even argued in Federal court that they had no obligation to process absentee ballots in accordance with regulations. This legislation will make it clear that absentee ballots must be handled in a timely fashion.
HB 57 would freeze the Business, professional, and occupational license (BPOL) tax on businesses. Localities that have not imposed the tax would not be permitted to impose it in the future and localities that do impose the tax could not increase their rate. The BPOL tax is a very unfair tax on businesses because it is based on their gross receipts and not on profits or income. So a company could be losing money and still have to pay the tax. The BPOL tax was originally imposed to pay for the War of 1812. I think all the bills from that war were paid off a long time ago.
HJ 11 and HB 16 would place an amendment to the Virginia Constitution on the ballot that would give localities great flexibility in granting property tax relief to senior citizens and the disabled.
HB 17 reduces period of limitation for collection of delinquent state taxes from 20 to 10 years. Currently the Virginia Department of Taxation can go back 20 years to collect taxes. I think this is excessive and it is unreasonable to expect individuals and businesses to retain records for 20 years in order to defend themselves from an accusation that they may owe back taxes.
HB 55 would limit the amount of money that the Virginia Railway Express (VRE) can assess member localities to not more than the localities collection from the 2 percent gas tax that they impose to pay for VRE. This would keep member localities from having to use their general fund to pay the VRE subsidy and provide some incentive for VRE to control costs.
HB 106 would repeal the restaurant ban for concealed handgun permit holders and clarify that a permit holder could carry in a church with the church’s permission. The current law is confusing and open to interpretation. Guns are banned in church unless someone has a good reason to carry in church. But it never states what a good reason might be. What might be a good reason to one judge or Commonwealth Attorney might not be a good reason for another.
HB 107 corrects an oversight in the code. Currently school superintendents are supposed to be informed whenever one of their minor students is arrested or charged with a crime; this is so that the school may take action to protect other students in the school. However, the notification does not apply if the student is 18 or older. Some high school students are 18 or older and this bill would require that the superintendent be notified if they are arrested or charged as well.
HB 110 is another bill dealing with the BPOL tax. It would allow localities to decide to impose on business's gross receipts or its State taxable income, making the tax a little fairer.
HB 575 would give school systems flexibility in meeting specific state education mandates when their state funding is being reduced. This would give local school boards greater flexibility in dealing with state budget cuts.
HB 577 would extend the time to appeal real estate property assessments.
HB 580 Allows localities to exempt long time members of the sheriff's volunteer citizen support units from local vehicle license fees.
STATE BUDGET
The economy and state budget will dominate the session. Due to the prolonged economic recession, state tax revenues are running under projections by about $ 4 Billion. This will require cuts to be made to all areas of state government. As one of his last acts as Governor, Tim Kaine submitted a budget proposal to the General Assembly which attempts to close the budget gap with a mixture of spending cuts and tax increases. I am concerned that passing any tax increases at this time will aggravate our weak economy and cost more jobs and money in the long run.
OLD CARTOON WITH A MESSAGE FOR TODAY
Below is an old cartoon made in 1948. While it is dated, it still has a message for today. Just click on the arrow below to watch it. It lasts about 9 and a half minutes, but is worth a look.
CONCERNS WITH WASHINGTON
I normally keep these updates focused on state issues and what is going on in the Virginia General Assembly, however, I have heard concerns from many constituents about what the Federal government is doing. Spending billions bailing out Wall Street, increasing the national debt by trillions of dollars, and then proposing a huge expansion of government to run our healthcare system; the Federal government seems to have no regard for Constitutional limits on government or sound fiscal policy. I am concerned that their actions are making our economic problems worse and will saddle our children and grandchildren with huge debt payments. I would encourage you to contact your Congressional representatives and let them know your thoughts regarding these issues. The Congressional delegation for our area may be contacted at:
RECENT TRANSPORTATION ACCOMPLISHMENTS
The Governor and others have been quick to claim that nothing has been done to address our transportation problems in 20 years. This is because they equate raising taxes with doing something; unless taxes are increased significantly, nothing has been done. The 2004 tax increase (the largest in Virginia history) does not count because none of that money was dedicated to transportation, the biggest problem in our area.
The fact is that a lot has been done to try to address transportation in recent years. Funding for transportation has increased significantly, taxes and fees were increased for transportation just last year (but those tax and fee increases were not big enough for the Governor to count as doing something). Here are some seldom-publicized facts:
- 2005, increased transportation funding by more than $ 1.4 Billion, the largest increase in nearly 20 years, including $ 850 million in additional transportation funding to reduce congestion on major thoroughfares like I-95 (HB 1500). The House of Delegates had proposed $ 1.2 Billion for congestion relief, but the Senate and Governor Warner wanted significantly less, so we had to compromise on $ 850 million.
- 2006, built upon the previous year's actions by directing an additional $ 568 million in surplus dollars and ongoing funding to transportation (HB 5002).
- 2007, financed largest transportation investment in two decades, including $ 3 billion in bonding authority, increased vehicle registration fee, heavy truck fees, and the diesel fuel tax. Also required that at least half of any future budget surpluses go to transportation (HB 3202); nearly $ 500 million in ongoing, new transportation funding (not counting any future surpluses).
In 2008 we successfully restored $180 million in transportation funding that Governor Kaine had diverted to other programs. It seems that no matter how much more we spend on transportation, we keep falling further behind. We have already provided big funding increases for transportation. Now is not the time to reach deeper into the taxpayers pockets, now is the time to demand results for the big investments we are already making.
During the recent special session the House advanced a reform agenda, focusing on streamlining our transportation processes and adopting new, more cost-effective ways of providing transportation services (which have shown proven results in other states); while the State Senate and Governor simply called for more tax increases (including raising the Gas Tax) despite the fact that our economy is in recession and businesses and families are struggling to make ends meet. We were able to defeat the tax increase proposals, several on large bi-partisan votes; unfortunately all but two of our reform proposals were defeated in the State Senate. We have already significantly increased transportation funding. I believe now is the time to focus on transportation reform and improving efficiency, not reaching deeper into the taxpayers pockets.
