Intergovernmental Relations Committee August 4, 2010

1. Intergovernmental Relations CommitteeAugust 4, 2010 Mandates Cataloging and Assessment Susan B. Williams, Esq. Commission on Local Government Department of Housing and Community Development

2. Commission on Local Government (CLG) • Five members appointed by the Governor • Knowledge and experience in local government • Hold no other elective or appointive public office • Current Members: • Harold Bannister, Chairman • Wendy Wingo, Vice-Chairman • Vola Lawson • Kathleen Seefeldt • Cole Hendrix • Agency consolidated into DHCD in 2003 per recommendation of Governor Warner’s Commission on Efficiency and Effectiveness

3. CLG Purpose • Promote and preserve the viability of Virginia’s local governments by fostering positive intergovernmental relations • Advisory reports on annexation; governmental consolidation and transition; and voluntary settlement and economic growth sharing agreements • Technical assistance to local governments and citizens • Fiscal stress computation and analysis • Cataloging and assessment of state and federal mandates imposed on local governments • Cash proffer survey and report • Fiscal impact of proposed legislation • New: Designation of urban development areas report

4. Mandates Cataloging • Va. Code § 15.2-2903(7) (HB 2146,1993) • Commission to prepare and annually update a catalog of state and federal mandates imposed on localities including, where available, a summary of the fiscal impact on localities of all new mandates • Directs all departments, agencies of government, and localities to make available such information and assistance as the Commission may request in maintaining the catalog • Executive Order 58 (2007) • Establishes policies and procedures for agency assessment of mandates on local government • Defines mandates and classifications for cataloging and assessment purposes

5. Definitions in EO 58 • Mandate – a constitutional, statutory, or administrative measure or action that places a requirement on local governments. • Classifications: • Compulsory Orders – measures or actions that impose requirements with which localities must comply in the performance of their prescribed responsibilities. • Non-Discretionary Conditions of Aid – requirements which are imposed as a condition of receiving state and/or federal financial aid for which localities are obligated or encouraged to apply. • Regulation of Optional Activities – measures imposing state and/or federal government requirements relative to the performance of activities that are not mandated but are subject to such regulation if performed. • ***New***State fiscal preemption – measure or action that results in a net reduction of revenues collected by a locality or restricts a locality’s authority to collect such revenues.

6. Mandates Cataloging • Most recent edition of catalog published in November 2009 • Commission staff currently working on 2010 catalog • 570 state and federal mandates listed in current catalog • 456 subject to assessment by state agencies • 114 administered by non-executive/independent agencies or there is no state oversight therefore not subject to assessment • Of those subject to assessment: • Compulsory Order: 240 • Condition of Financial Aid: 112 • Regulation of Optional Activity: 104 • Assessments by 45 executive branch state agencies; review of catalog entries by 50 state agencies • Department of Education is responsible for the most mandates – 97, followed by Department of Social Services – 54, then Department of Environmental Quality – 33

7. Cataloging Process • Each year, Commission staff attempts to identify all state and federal mandates not previously cataloged. • Commission staff sends catalog entries / proposed entries to state agencies for review and asks agencies to inform the Commission of any additional mandates. • Commission staff reviews information provided by state agencies and finalizes the catalog for presentation to the Commission. • Part A of the catalog features mandates that are overseen by state agencies, while Part B contains mandates that are not subject to assessment. • Changes in mandates that have occurred since the issuance of the last catalog are featured in Appendix C.

8. Catalog Entries • Title of mandate • Catalog number of mandate • Description of mandate • Type of mandate • Administering agency and Secretariat • Authority for mandate • Period during which the mandate was last assessed • Finding that resulted from the last assessment • Current assessment period, if any • Comments, if any

9. Mandates Assessment • Va. Code § 15.2-2903(6) (HB 2332, 1993) • Commission receives assessments from agencies of all mandates imposed on localities • Assessments conducted on schedule set by the Commission, with the approval of the Governor and the Secretary of Commerce and Trade • Schedule is published in the Virginia Register and provided to VACo and VML • Assessments performed not more than once every four years • Purpose is to determine which mandates, if any, may be altered or eliminated • Commission advises Governor and General Assembly if assessment reveals that a mandate may be altered or eliminated without interruption of local service delivery and without undue threat to the health, safety and welfare of the residents of the Commonwealth • Va. Code § 2.2-613 • Requires agencies to conduct an assessment of all mandates imposed on local governments administered by the agency to determine which mandates, if any, may be altered or eliminated

10. Mandates Assessment: Executive Order 58 • Took into consideration the recommendations of a task force convened by the Commission in 2006 to review the mandates assessment process • Eliminated previous requirement to periodically reassess all mandates in the catalog • Limited assessment activities to four types of mandates: • new mandates • newly identified mandates • mandates that have been so substantially modified as to create a new mandate • mandates that the Commission, after duly considering input from local governments, state agencies, interest groups, and the public, has determined should be reassessed • No mandate becomes subject to assessment until it has been in effect for at least twenty-four months • No mandate can be reassessed more than once every four years unless it has been so substantially modified as to create a new mandate

11. Mandates Assessment Process • Agencies submit assessments on form provided by the Commission • Completed form must be approved and signed by Agency Head and Cabinet Secretary • Copies of all completed, signed assessments are provided by the Commission to the Governor; the Secretary of Commerce and Trade; the Clerks of the House of Delegates and Senate; and VACo and VML

12. Mandates Assessment Process Continued • Fiscal Impact of Mandate on Localities • Localities affected • Funding of mandate, including estimated range of costs to localities • Effectiveness of mandate in accomplishing purpose • General purpose of mandate • Description of essentiality to the public safety • Alternative approaches to achieving purpose of mandate • Identification and fiscal impact of alternative approaches • Agency Recommendation - retain, alter, or eliminate mandate and rationale • Administering agency is responsible for pursuing recommended action

13. Mandates Recommended for Elimination • Office Space Compliance Required / SHHR.DSS014 • Description: Local social service agencies must conform to policies on office space and facilities set by the Virginia Department of Social Services (VDSS). • Type: Compulsory Order • Recommendation: VDSS recommended elimination of this mandate in 2006. • Rationale: “The policy mandating compliance with office space requirements was issued in 1977, and is now obsolete, archaic and no longer applicable to current business processes. The VDSS would like to recommend that the State Board of Social Services take action to repeal the mandate…” • Result: This mandate has not been eliminated.

14. Mandates Recommended for Elimination Continued • Hazardous Materials Response Team / SPS.VDEM007 • Description: Local governments entering into cost-sharing agreements with the Department of Emergency Management (VDEM) to receive State funds for the maintenance and operation of advanced hazardous materials response teams must agree to dispatch the teams to incidents occurring within an assigned geographic area outside their own political subdivision. • Type: Condition of Financial Aid • Recommendation: VDEM recommended elimination of this mandate in 2006. • Rationale: “The legislation 44-146.35 requires the state to develop a training and response capability. 44-146.36 allows the state to enter into agreements with localities but it does not require jurisdictions to do it, therefore, a voluntary program for the jurisdictions involved.” • Result: Mandate remains in catalog because Commission considers it a condition of financial aid.

15. Mandates Recommended for Elimination Continued • Contract Inmate Classification Reporting / SPS.DOC006 (SOA.CB006 prior to 2007) • Description: Local or regional jails holding contract prisoners from another state, the federal government, or the District of Columbia for more than 48 hours must report monthly to the Director of the Department of Corrections (DOC) the security classification of each contract inmate and the security level of the housing unit in which the inmate is held. • Type: Compulsory Order • Recommendation: DOC recommended the elimination of this mandate in 2002. • Rationale: “It is our understanding that this language was added to the 1999 budget bill with some security concerns about the impending closure of the Lorton facility in Northern Virginia and the potential placement of some of their inmates in Virginia jails. With that immediate concern behind us, there does not appear to be any significant public policy need to retain this reporting requirement.” • Result: This language continues to appear in the Budget Bill. See Item 67.3.H.5, Chapter 874, 2010 Virginia Acts of Assembly.

16. Mandates Recommended for Elimination Continued • Residential Centers for Parolees / SPS.DOC004 • Description: To receive certification and funding, local governments participating in the contracted bed space program for housing parolees and inmates being released from prison are required to comply with Board of Corrections regulations for residential centers. • Type: Regulation of Optional Activity • Recommendation: DOC recommended the elimination of this mandate in 2000. • Rationale: “Local government may decide whether or not to contract with the Department of Corrections.” • Result: Mandate remains in catalog because Commission considers it the regulation of an optional activity.

17. Questions or Additional Info? Contact Susan Williams susan.williams@dhcd.virginia.gov (804) 786-6508