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1996 SESSION

964634757
SENATE BILL NO. 347
Offered January 22, 1996
A BILL to amend and reenact § 58.1-3713 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 58.1-3713:01, relating to use of local coal and gas road improvement tax for water development.
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Patron-- Wampler
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Referred to the Committee on Finance
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Be it enacted by the General Assembly of Virginia:

1. That § 58.1-3713 of the Code of Virginia is amended and reenacted and that the Code of Virginia is amended by adding a section numbered 58.1-3713:01 as follows:

§ 58.1-3713. Local coal and gas road improvement and Virginia Coalfield Economic Development Authority tax.

A. In addition to the taxes authorized under § 58.1-3712, any county or city may adopt a license tax on every person engaging in the business of severing coal or gases from the earth. The rate of such tax shall not exceed one percent. The provisions of § 58.1-3712 as they relate to measurement of gross receipts, filing of reports and record keeping shall be applicable to the tax imposed under this section.

The moneys collected for each county or city from the tax imposed under authority of this section shall be paid into a special fund of such county or city to be called the Coal and Gas Road Improvement Fund of such county or city, and shall be spent for such improvements to public roads as the coal and gas road improvement advisory committee and the governing body of such county or city may determine as provided in subsection B of this section. The county may also, in its discretion, elect to improve city or town roads with its funds if consent of the city or town council is obtained. Such funds shall be in addition to those allocated to such counties from state highway funds which allocations shall not be reduced as a result of any revenues received from the tax imposed hereunder. In those localities which comprise the Virginia Coalfield Economic Development Authority, the tax imposed under this section shall be paid as follows: (i) three-fourths of the revenue shall be paid to the Coal and Gas Road Improvement Fund and used for the purposes set forth herein; however, one-fourthone-half of such revenue may be used to fund the construction of new or enhanced water systems and linesprojects in areas withwhere natural water supplies which are insufficient from the standpoint of quality or quantity as determined by the governing body and the water development committee of such county or city as provided in § 58.1-3713:01, and (ii) one-fourth of the revenue shall be paid to the Virginia Coalfield Economic Development Fund. As used herein, "water project" means a water system or line owned by a public utility operated by a town, city, county or public service authority.

B. Any county or city imposing the tax authorized in this section shall establish a Coal and Gas Road Improvement Advisory Committee, to be composed of four members: (1) a member of the governing body of such county or city, appointed by the governing body, (2) the resident engineer from the Department of Transportation, and (3) two citizens of such county or city connected with the coal and gas industry, appointed for a term of four years, initially commencing July 1, 1989, by the chief judge of the circuit court.

Such committee shall develop on or before July 1 of each year a plan for improvement of roads during the following fiscal year. Such plan shall have the approval of three members of the committee and shall be submitted to the governing body of the county or city for approval. The governing body may approve or disapprove such plan, but may make no changes without the approval of three members of the committee.

§ 58.1-3713:01. Distribution of local coal and gas road improvement tax for water projects; water development committee.

A. Any county or city imposing a local coal and gas road improvement tax which is authorized by subsection A of § 58.1-3713 to use a portion of the revenue from such tax to fund the construction of water projects shall establish a water development committee. Each committee shall be composed of three members: (i) a member of the governing body of the county or city, (ii) a representative of the coal or gas industry making payments of the local coal and gas road improvement tax to the county or city, and (iii) a citizen owning property and residing in the county or city. The members shall be appointed by the chief judge of the circuit court for a term of four years. The governing body of the county or city may make recommendations to the chief judge regarding the appointments.

B. The water development committee shall develop an annual plan for the funding, during the following fiscal year, of new or enhanced water projects in areas in its city or county where natural water supplies are insufficient from the standpoint of quality or quantity. Plans shall establish a priority for funding water projects in the committee's city or county. Priority for funding shall be given to (i) replacing water supplies lost due to mining activities; (ii) preserving water supplies that are jeopardized due to permitted mining which is occurring or is near commencement; (iii) facilitating development of water projects which will promote diversified industrial development; and (iv) increasing the capacity of publicly owned water treatment or supply facilities. Plans shall encourage the development of regional water projects. "Regional water project" means a project involving two or more public water service providers located in the same or neighboring political subdivisions. In order to promote cost savings and economic development, funding may be provided for regional water projects as provided in this section. If a regional water project encompasses an area for which plans are developed by two or more water development committees, the project shall not be funded unless it is a priority on the plans prepared by all of the committees.

C. The plan developed by a water development committee shall be submitted to the governing body of the county or city for approval. The governing body may approve or disapprove such plan, but may make no changes without the approval of two members of the water development committee. A county or city shall not expend local coal and gas road improvement tax revenue for water projects in a manner that is inconsistent with the priority for funding set forth in an approved plan.