Neighborhood Assistance Program; eligibility for tax credits. (HB742)

Introduced By

Del. David Toscano (D-Charlottesville)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Neighborhood Assistance Program tax credits; eligibility. Creates an exception to the requirement that each affiliate of a neighborhood organization must also meet all program regulations and guidelines as a condition of the neighborhood organization's eligibility for tax credits. Under the bill, the general program requirements for proposals submitted to the Commissioner of Social Services that (i) at least 50 percent of the persons served by each affiliate of the neighborhood organization be low-income persons, (ii) at least 50 percent of the revenues of each affiliate of the neighborhood organization be used to provide services to such persons, (iii) each affiliate also meet the definition of a "neighborhood organization," and (iv) an audit, review, or compilation for each affiliate be furnished will not apply if (a) the neighborhood organization otherwise meets all program requirements and regulations, (b) the neighborhood organization received a fiscal year 2013-2014 allocation of neighborhood assistance tax credits, and (c) no affiliate of the neighborhood organization submits a proposal for or receives an allocation of tax credits for the program year for which the neighborhood organization has submitted its proposal. The exemption from the affiliate requirements is permanent and benefits neighborhood organizations applying for tax credits from the Commissioner of Social Services. Current law provides a similar exemption from the affiliate requirements for neighborhood organizations that received an allocation of tax credits for fiscal year 2011-2012 from the Superintendent of Public Instruction. However, this exemption is set to expire beginning with allocations of tax credits for fiscal year 2019-2020. The bill also makes this current exemption permanent. The changes under the bill creating a new exemption from the affiliate requirements and making permanent the current exemption from such requirements have the effect of permanently grandfathering certain neighborhood organizations from such requirements. Those neighborhood organizations that would be permanently exempt from the affiliate requirements were awarded neighborhood assistance tax credits prior to the requirements' becoming effective. Read the Bill »

Outcome

Bill Has Passed

History

DateAction
01/12/2016Prefiled and ordered printed; offered 01/13/16 16100076D
01/12/2016Referred to Committee on Finance
01/15/2016Assigned to sub: Subcommittee Subcommittee #1
01/15/2016Assigned to sub: Subcommittee #1
01/15/2016Assigned Finance sub: Subcommittee #1
01/19/2016Impact statement from TAX (HB742)
01/27/2016Subcommittee recommends reporting (8-Y 0-N)
02/01/2016Reported from Finance (18-Y 4-N) (see vote tally)
02/02/2016Read first time
02/03/2016Read second time and engrossed
02/04/2016Read third time and passed House (89-Y 8-N)
02/04/2016VOTE: PASSAGE (89-Y 8-N) (see vote tally)
02/05/2016Constitutional reading dispensed
02/05/2016Referred to Committee on Finance
02/11/2016Impact statement from TAX (HB742)
02/17/2016Reported from Finance with substitute (13-Y 0-N) (see vote tally)
02/17/2016Committee substitute printed 16105602D-S1
02/18/2016Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/19/2016Read third time
02/19/2016Passed by for the day
02/22/2016Read third time
02/22/2016Passed by for the day
02/23/2016Passed by for the day
02/24/2016Committee substitute agreed to 16104968D-S1
02/24/2016Read third time
02/24/2016Reading of substitute waived
02/24/2016Committee substitute agreed to 16105602D-S1
02/24/2016Engrossed by Senate - committee substitute HB742S1
02/24/2016Passed Senate with substitute (40-Y 0-N) (see vote tally)
02/25/2016Placed on Calendar
02/26/2016Passed by for the day
02/29/2016Senate substitute agreed to by House 16105602D-S1 (92-Y 6-N)
02/29/2016VOTE: ADOPTION (92-Y 6-N) (see vote tally)
03/01/2016Enrolled
03/01/2016Bill text as passed House and Senate (HB742ER)
03/01/2016Signed by Speaker
03/03/2016Impact statement from TAX (HB742ER)
03/04/2016Signed by President
03/11/2016G Governor's Action Deadline Midnight, Monday, April 11, 2016
03/11/2016Enrolled Bill communicated to Governor on 3/11/16
03/11/2016G Governor's Action Deadline Midnight, Sunday, April 10, 2016
03/11/2016G Approved by Governor-Chapter 426 (effective 7/1/16)
03/11/2016G Acts of Assembly Chapter text (CHAP0426)
03/11/2016G Acts of Assembly Chapter text reprinted (CHAP0426)

Video

This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 4 clips in all, totaling 4 minutes.

Transcript

This is a transcript of the video clips in which this bill is discussed.

SENATOR HANGER.

Sen. Emmett Hanger (R-Mount Solon): THANK YOU MR. PRESIDENT. WE'VE BEEN DISCUSSING THIS BILL WITH THE JUNIOR SENATOR FROM THE VIRGINIA BEACH, AND HE HAS SOME SUGGESTIONS WHICH I THINK WOULD IMPROVE THIS BILL, SO I WOULD ASK THAT IT GO BY FOR THE DAY BEFORE WE ADOPT THE COMMITTEE SUBSTITUTE.

[Unknown]: I THANK THE SENATOR, WITHOUT OBJECTION, HOUSE BILL 742 WILL GO BY FOR THE DAY.

Sen. Emmett Hanger (R-Mount Solon): HOUSE BILL 1331, A BILL RELATING TO WITHHOLDING OF INCOME TAXES, RELATED PENALTIES, REPORTED FROM THE COMMITTEE ON FINANCE WITH A SUBSTITUTE.

[Unknown]: THE SENATOR FROM AUGUSTA, SENATOR HANGER.

Sen. Emmett Hanger (R-Mount Solon): THANK YOU MR. CHAIRMAN,


Sen. Tommy Norment (R-Williamsburg): ALL IN FAVOR SAY AYE. THOSE OPPOSED, NO. THE AYES HAVE IT. THE MOTION IS AGREED TO. THE BILLS ARE BEFORE US IN THE BLOCK. THE CLERK WILL PLEASE READ THE NUMBER OF THE BILLS.

[Unknown]: HOUSE BILL 742 REPORTED FROM THE COMMITTEE ON FINANCE WITH A SUBSTITUTE. THE SENATOR FROM AUGUSTA, SENATOR HANGER.

Sen. Emmett Hanger (R-Mount Solon): THE MEMBERS MAY RECALL WE PASSED THIS BILL BYE FOR TWO OR THREE DAYS. WE WERE HOPING TO FIND A BETTER WAY TO ACCOMPLISH THE INTENDED


[Unknown]: FEBRUARY 4TH.

Del. Bill Howell (R-Fredericksburg): THE GENTLEMAN FROM CHARLOTTESVILLE, MR. TOSCANO.

Del. David Toscano (D-Charlottesville): THANK YOU, MR. SPEAKER, I'M GOING TO ASK YOU TO ACCEPT THE SENATE SUBSTITUTE. AND LET ME TELL YOU WHY. THIS LITTLE BILL BEGAN IT'S JOURNEY BY ATTEMPTING TO FIX A PROBLEM CREATED SEVERAL YEARS AGO THAT DISQUALIFIED CERTAIN NONPROFIT ORGANIZATIONS FROM APPLYING FOR THE TAX CREDITS UNDER THE NEIGHBORHOOD ASSISTANCE PROGRAM AND I HAVE AN AGENCY IN MY AREA THAT HAD GOTTEN A LOT OF CREDITS BEFORE. WHEN TIGHTENING ON REGULATIONS IT CAUGHT THIS AGENCY. THERE ARE SEVERAL QUALIFICATIONS, THEY ASK NOT HAVE AN AFFILIATE THAT SERVES PEOPLE OTHER THAN LOW AND MODERATE INCOME PEOPLE. IN MY DISTRICT, THIS DISTRICT HAS AN ASSISTED LIVING FACILITY FUNDED BY GRANTS. PART OF THE WAY THAT FACILITY WORKS IS THAT THEY ALLOW FULL PAID PEOPLE TO COME IN THERE AND THEY PAY A HIGHER RATE AND THAT DRAWS DOWN THE COST. AND THEY WERE DISQUALIFIED FOR OTHER PARTS OF THE PROGRAM. NOW, OFF DEBATE THIS BILL PASSED OUT OF HERE 89-8. SO ANYBODY WHO VOTED AGAINST A BILL BEFORE AUGHT TO TAKE A LOOK AT THE BILL. WHEN THE BILL GOT TO THE SENATE, THE SENATE INSTALLED A SUNSET ON THE CREDIT. AND BECAUSE IT IS CONSISTENT WITH WHAT WE HAVE DONE IN THE HOUSE BY IMPOSING SUN SETS, I IT IS MORE CONSISTENT WITH HOW WE APPROACH THINGS HERE. I HOPE YOU'LL ACCEPT THE SENATE SUBSTITUTE AND VOTE FOR IT. THANK YOU, MR. SPEAKER.

Del. Bill Howell (R-Fredericksburg): SHALL THE SENATE SUBSTITUTE BE AGREED TO? CLERK WILL CLOSE THE ROLL.