                                 CODE OF VIRGINIA

ESTIMATES TO BE PREPARED FOR LEGISLATION AFFECTING LOCAL GOVERNMENT EXPENDITURES
AND REVENUES (§ 30-19.03)

Whenever any legislative bill requiring a net additional expenditure by any
county, city, or town, or whenever any legislative bill requiring a net
reduction of revenues by any county, city, or town, is filed during any session
of the General Assembly, the Commission on Local Government shall investigate
and prepare an estimate setting forth, to the extent practicable, the additional
expenditures or reduction of revenues, if any, to be required of the affected
localities in event of enactment of such legislation.
		A bill shall be deemed to require an expenditure if it has the effect of
requiring any county, city, or town to (i) perform or administer a new or
expanded program or service, (ii) maintain an existing program or service at a
specified level of spending or delivery, (iii) assume or incur administrative
costs in support of a state or state-related program, or (iv) furnish capital
facilities for state or state-related activities.
		For purposes of this section, &#8220;net additional expenditure&#8221; means
the cost anticipated to be incurred annually, less any revenues receivable on
account of the program or service from fees charged recipients of the program or
service, state or federal aid paid specifically and categorically in connection
with the program or service, new or increased local sources of revenue
authorized and designated specifically to offset the cost of the program or
service, and any offsetting savings resulting from the reduction or elimination
of any program or service directly attributable to the performance of the
required program or service.
		A bill shall be deemed to require a net reduction of revenues if it has the
effect of requiring any county, city, or town to (i) relinquish an existing or
potential source of local revenue by classification or exclusion or (ii)
diminish an existing or potential source of revenue by classification or
exclusion.
		For the purposes of this section, &#8220;net reduction of revenues&#8221;
means the reduction anticipated in local revenues, including, but not limited
to, general levies, special levies, revenues received pursuant to §§ 58.1-605
and 58.1-606 and administrative and user fees, to be incurred annually, less any
new local revenues receivable and any offsetting savings resulting from the
reduction of local revenues, caused by the classification or exclusion being
proposed.
		The provisions of this section shall not apply to a reduction in local
revenues that is required or arises from a court order or judgment, nor to a
revenue reduction that is adopted at the option of any county, city, or town
under a law that is permissive rather than mandatory, nor to a revenue reduction
that is the result of a measure providing tax relief on a statewide basis.
		The Division of Legislative Services shall examine all bills and joint
resolutions filed during any legislative session for the purpose of identifying
and forwarding to the Commission on Local Government those bills requiring the
preparation of fiscal estimates pursuant to this section and those joint
resolutions calling for a study of local government revenues or expenditures.
		The Department of Planning and Budget and the Department of Taxation are
authorized to submit legislative bills to the Commission on Local Government to
prepare local fiscal estimates.
		As soon thereafter as may be practicable, the Commission on Local Government
shall forward copies of such estimates to the Clerk of the House of Delegates
for transmittal to each patron of the legislation and to the chairman of each
committee of the General Assembly to consider the same.
		All departments, agencies of government, the Division of Legislative Services,
and all local governmental units of the Commonwealth are directed to make
available such information and assistance as the Commission on Local Government
may request in preparing the estimates required by this section.

HISTORY: 1979, c. 257; 1980, cc. 747, 749; 1995, c. 743; 1999, c. 1016; 2010, c.
410; 2014, c. 807.