eNews – January 16, 2024
Oppose no fee FOIA bill, Local grocery tax repeal returns, Legislation to watch...and more!
Tuesday, January 16, 2024/Categories: eNews
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In this issue:
Action Alert
VML News
Budget & Finance
General Laws
Public Safety
Utilities
Education
Health & Human Services
Elections
Action Alert
FOIA bill opposed by VML will be heard by Senate General Laws Committee tomorrow!
SB324 (Roem) Virginia Freedom of Information Act; charges for production of public records. Prohibits a public body from charging a requester for costs incurred during the first 2 hours of searching for records of the first 4 requests in 31 days and if there are 5 or more requests the rate cannot exceed $33/hour. There is a mechanism to petition the court for relief upon showing that there is no qualified individual capable of fulfilling the request at that rate.
Please call the members of the Senate General Laws Committee to oppose this bill.
VML Contact: Michelle Gowdy, mgowdy@vml.org
VML News
Register now for Local Government Day happening February 1
The Virginia Municipal League invites its members to Local Government Day happening Thursday, February 1 at the Richmond Downtown Marriott. This is the day when all cities, towns and counties come together and advocate on behalf of our communities. Join us for Local Government Day!
Registration available here >
Agenda:
- 11:00 a.m. | Registration
- 11:30 a.m. | Lunch
- Noon | Local Government Day
- Afternoon | Visit the Capitol to speak with legislators
- 5:30 p.m. | Reception
Lodging: The room block at the Richmond Downtown Marriott has sold out. However, there are two other options:
- Hilton Downtown Richmond (501 E. Broad Street, 23219). The Hilton is located directly across the street from the Marriott. Room rates at the Hilton Downtown Richmond start at $189 (single room occupancy). Reserve rooms at the Hilton Downtown Hilton here >.
- Delta Richmond Downtown (555 East Canal Street, 23219). The Delta is about six blocks from the Marriott. The hotel has a free shuttle available. Room rates at the Delta Richmond Downtown start at $165 (single room occupancy). Reserve rooms at the Delta Richmond Downtown here >.
VML Contact: Rob Bullington, rbullington@vml.org
Budget & Finance
Effort to repeal local option sales tax on groceries returns for 2024
For the third year in a row, Del. McNamara (HB540) and Sen. Suetterlein (SB110) have introduced legislation to repeal the 1% local option sales tax on groceries and personal hygiene products. Two years ago, legislation passed to repeal the statewide sales tax on these products, but the local option has remained in place. And that’s a good thing, since the local option generates about $300 million annually, providing a reliable and flexible source of revenue for localities to use at their discretion.
While the recently introduced bills include language holding localities harmless from any lost revenue, similar assurances were made two years ago when the General Assembly passed legislation to eliminate the statewide sales tax on groceries and personal hygiene products. A portion of those revenues, more than $250 million each year, flowed to local school divisions, and assurances were given that those revenues would not cease.
Unfortunately, less than two years after the bill was enacted, the Governor’s introduced budget overrides the bill’s hold harmless provisions, leaving local school divisions facing a significant funding shortfall if revenues are not restored.
It’s not sure which adage will apply – “third time’s the charm” or “three strikes and you’re out” – but we’ll find out in the days ahead. In the meantime, VML will reiterate to the patrons our concerns about the proposal and will watch the legislation closely for any indications it has more of a chance of succeeding this year than in years past.
VML Contact: Joe Flores, jflores@vml.org
Transient occupancy tax bill would shift collection from localities to the state
HB1328 (McNamara) requires the Commonwealth to collect local transient occupancy taxes instead of local governments. There may be efficiencies associated with the TAX department collecting locally imposed transient occupancy taxes, but the Commonwealth hasn’t been the most reliable partner when it comes to ensuring that revenues collected by the state flow to local governments.
For example, years ago when a decision was made requiring the TAX department to collect communications sales and use taxes on behalf of localities, the department retained a portion of those revenues for administrative costs. In later years, a portion of the revenues were diverted to the general fund when state funds became scarce. Those are the risks (and costs) associated with having the Commonwealth take on revenue collections for local governments.
VML has conveyed our concerns to the patron and will oppose this effort.
VML Contact: Joe Flores, jflores@vml.org
Scope of legislation to expand APA intervention in localities experiencing fiscal distress may prove worrisome
HB655 (Coyner) / SB645 (Aird) codify language that has been included in the Appropriations Act that established a process whereby the Auditor of Public Accounts (APA) was able to flag localities that were in fiscal distress. That process, in place for the past five years, has allowed the APA to work with localities who may be in distress.
But the bills also contemplate changes that require the APA to intervene more assertively if a locality fails to cooperate with recommended actions.
Currently, a locality or chief executive officer may reach out to the APA to conduct a review of the local government’s fiscal situation. The proposed bills require the APA to conduct a review and request information from the locality, in coordination with the local governing body.
In addition, the bills require the Commission on Local Government, a legislative body, to ascertain whether the locality has “taken appropriate action” to address a detailed list of factors that include: a) budget processes, b) debt, c) borrowing, d) expenses and payables, e) revenues and receivables, and f) other areas including staffing, and the identification of external variables contributing to a locality's financial position.
If the report from the Commission on Local Government “concludes that a locality is either unwilling or unable to comply with the conditions necessary to address its fiscal distress, the Governor shall use all powers available to him to intervene for the purpose of addressing such fiscal distress.”
VML staff continue to research this issue to understand the catalyst behind the proposals and the interventions contemplated.
VML Contact: Joe Flores, jflores@vml.org
General Laws
Bills reported out of the Senate Local Government Committee on Monday
SB48 (Locke) Vacant buildings; registration. Allows any county, city, or town to require a vacant building registration if the building has been vacant 12 months and it meets certain criteria. This bill was recommended by the Housing Commission.
SB49 (Locke) Community revitalization fund; expanding use for all localities. Expands the current law to allow all localities the ability to establish a community revitalization fund to be used to prevent neighborhood deterioration. Currently only the City of Richmond has this authority. This bill was recommended by the Housing Commission.
SB135 (Head) Virginia Economic Development Partnership Authority; eligible site for site development grant; minimum acreage. Reduces the minimum number of contiguous acres from 100 to 50 for a site that is not a brownfield site to be eligible for a site development grant from the Virginia Business Ready Sites Program Fund by the Virginia Economic Development Partnership Authority. The bill also exempts from the minimum acreage requirement any site that exists in a locality that has 3 or fewer eligible sites that are not 100 acres.
The following charter bills were passed: SB106 (Lucas) City of Portsmouth, SB112 (Sturtevant) City of Colonial Heights, SB189 (Rouse) City of Virginia Beach, SB262 (Craig) City of Virginia Beach, SB309 (Jordan) Town of Smithfield, SB375 (French) Town of New Market.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Public procurement bill reported out of House subcommittee today
HB242 (Bulova) Virginia Public Procurement Act; competitive negotiation, exceptions to contractual terms. Allows public bodies to request objections to contractual terms when proposers are submitting their proposals, but not to use those objections when deciding who is on the short list. Once two or more firms are selected for negotiation, the public body can discuss the terms and conditions and take those objections into account when determining the winning bidder.
This bill was reported out of the House General Laws Subcommittee on Procurement/Open Government today.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Bill would end sovereign immunity for car accidents
HB704 (Webert) would end sovereign immunity for any vehicle accident , where the locality owns or operates the vehicle involved. The bill was sent to the House Transportation Committee.
VML Contact: Mark Flynn, markkflynn@gmail.com
Public Safety
Legislation addresses benefits for public safety workers
The following bills that would allow localities to provide hazardous duty benefits to 911 dispatchers have been referred to the House Appropriations Committee: HB38 (Clark); HB300 (Ballard); and HB630 (Cherry).
A similar bill addressing 911 dispatchers, SB328 (Jordan), has been referred to the Senate Finance and Appropriations Committee.
Also referred to the House Appropriations Committee is HB231(Campbell) which would add animal control officers to the list of employees eligible for hazardous duty retirement benefits.
VML Contact: Mark Flynn, markkflynn@gmail.com
Utilities
Legislation would open municipal utility operations and disconnections to SCC review
HB906 (Shin) / SB480 (Aird) impose new restrictions on municipal and privately operated utilities (electric, gas, drinking water, wastewater, stormwater) and put a moratorium on disconnections when temperatures are forecasted to be below 32 degrees Fahrenheit or the heat index is forecast to be above 95 degrees Fahrenheit. This legislation also includes new reporting requirements and civil penalties as well as damages and attorneys’ fees for utilities that violate the requirements set out in the legislation. The legislation also brings municipal utilities under the jurisdiction of the State Corporation Commission (SCC) for the purposes of enforcing disconnection moratoriums as in the case of a state of emergency declared by the Governor in the event of a communicable public health threat or the extreme temperatures outlined above. Furthermore, the legislation prevents utility disconnections for nonpayment on Fridays, weekends, state holidays and the day before a state holiday.
VML members are advised that this legislation will impact municipal utility disconnections by creating a framework for halting disconnections. This will be achieved by bringing municipal utility disconnection practices outlined in the legislation under the purview of the State Corporation Commission. This represents a significant change from the current practice of municipal utility operations and would open municipal utility operations and disconnections to review by the SCC.
Members are advised to examine how HB906 and SB480 will impact local utilities including how reporting requirements will impact local operations.
Your input is needed!
The patrons are interested in hearing how this legislation can be amended as it moves forward. VML members can contact Mitchell Smiley at the below email address with any recommendations to amend this legislation.
VML Contact: Mitchell Smiley, msmiley@vml.org
Education
Support bills that grant local authority to impose a one percent tax for school construction
HB805 (Rasoul), HB600 (Kilgore), and HB458 (Callsen) grant the statewide authority for counties and cities to impose a local option sales and use tax of up to one percent used solely for school construction if approved via referendum. Currently, nine localities have this authority with several more asking for the authority each year.
These bills are a top priority for VML so please contact your legislators in support of these bills.
VML Contact: Josette Bulova, jbulova@vml.org
Education legislation to watch
SB128 (VanValkenburg) addresses funding calculations of the Standards of Quality (SOQ) and requires the Department of Education to include various staff members in the cost of salaries, including the cost of compensation for instructional and support positions, prohibit a cap being placed on inflation rate adjustments during rebenchmarking, and utilize a three-year average when calculating the local ability to pay. These come as recommendations from the JLARC study on the SOQs. VML supports this bill. HB533 (Jordan) creates the Education Excellence for All Program which would take money intended for public schools and place it in a savings account for parents to access and use for private needs. Funds would then be diverted from public education to be used for private schooling. This legislation would be detrimental to the growing need to fund public education. VML opposes this bill.
SB558 (DeSteph) creates the School Choice Educational Savings Account which appropriates state funds designated for public schools to savings accounts for parents to use for education-related expenses such as tuition, deposits, fees, and textbooks at private schools, online programs, and higher educations. Like HB533, this legislation would take funds intended for public schools and allocate them for private use. VML opposes this bill.
VML Contact: Josette Bulova, jbulova@vml.org
Health & Human Services
Bills in the Senate Rehabilitation and Social Services Committee
SB41 (Peake) requires the Department of Corrections to reimburse local and regional jails for the true cost of incarceration for any individuals committed to the state but remaining in a local or regional jail beginning on the 61st day following the date the clerk of the committing court sends the final order to the DOC director. VML supports greater reimbursement of jails, as well as local say in whether a state-responsible inmate remains in a local or regional jail.
SB70 (McPike) requires every local department of social services to offer an employment and training program for every person enrolled in the federal food stamps (SNAP) program who wishes to participate in such a program. Currently about 30 departments offer such employment and training programs.
The Committee reported the bill on January 12 and referred it to Senate Finance and Appropriations because of the potential fiscal impact (state and local). Local governments have requested a local fiscal impact assessment of the bill.
SB590 (Deeds) adds to the list of required services offered by a community services board (CSB) or behavioral health authority (BHA) the following:
- Outpatient mental health and substance abuse services
- Psychiatric rehabilitation services
- Peer support and family support services
- Mental health services for members of the armed forced located 50 or more miles away from a military treatment facility and veterans located 40 or more miles from a Veterans Health Administration medical facility
- Case coordination services
Each CSB/BHA would be required to make these services available to every adult with a serious mental illness; a child with/at risk of serious emotional disturbance; and individuals with a substance use disorder. The services must be provided in a timely manner and at a location near the individual.
These provisions would become effective on July 1, 2026.
Meanwhile, the bill requires the Department of Behavioral Health and Developmental Services to conduct a needs assessment to determine the unmet need for each service listed and submit a cost estimate for the unmet needs to the Behavioral Health Commission and General Assembly budget-writing committees by Nov. 1, 2024.
This bill proposes the greatest expansion of required services since the CSB system was created; sufficient and sustained state funding would be necessary for the success of this expansion.
VML Contact: Janet Areson, jareson@vml.org
Legislation of interest in the House Health and Human Services Committee
Note – The House Committee on Health, Welfare, and Institutions has been re-named this year to Health and Human Services.
HB354 (Hope) requires the Virginia Department of Health to adopt regulations governing swimming pools and other water recreational facilities operated for public use, including swimming pools and other water recreational facilities operated in conjunction with a tourist facility or health spa. Besides water testing (currently required), regulations would cover 1) safety equipment and features, 2) maintenance and safety of equipment and premises, 3) operational requirements, 4) facility staffing, 5) incident response, and 6) such other provisions as may be necessary to protect the public health and safety.
VML Contact: Janet Areson (jareson@vml.org)
Elections
Bills propose changes to election procedures that would be troublesome for local governments
All the bills outlined below are currently assigned to the House Committee on Privileges and Elections.
HB254 (Sullivan) requires the party identification of a candidate for local office be shown on the ballot if the candidate is chosen in a party process. The federal Hatch Act makes it illegal for any federal employee to participate in any partisan election – such as if the party ID is shown on the ballot. For cities and towns in Northern Virginia, Tidewater, and places like the City of Salem, where the VA hospital is the biggest employer in the city, this would limit the people who could be involved in the local governing body. Recently, one council member resigned from her federal position due to Hatch Act issues directly affected by HB254. VML opposes this bill.
SB428 (Van Valkenberg) allows elections for any local or constitutional office to be conducted by ranked choice voting. Time magazine defines ranked choice voting as:
“Ranked-choice voting is an electoral system that allows people to vote for multiple candidates, in order of preference. Instead of just choosing who you want to win, you fill out the ballot saying who is your first choice, second choice, or third choice (or more as needed) for each position.”
“The candidate with the majority (more than 50%) of first-choice votes wins outright. If no candidate gets a majority of first-choice votes, then it triggers a new counting process. The candidate who did the worst is eliminated, and that candidate’s voters’ ballots are redistributed to their second-choice pick. In other words, if you ranked a losing candidate as your first choice, and the candidate is eliminated, then your vote still counts: it just moves to your second-choice candidate. That process continues until there is a candidate who has the majority of votes.”
HB79 (Campbell) allows the election to fill a vacancy on a local governing body to be held at the time of a primary election. This would lead to one party being able to dominate if only one party is holding a primary.
VML Contact: Mark Flynn, markkflynn@gmail.com
Transparency in elections bill assigned to House Privileges and Elections Committee
HB69 (Bulova) is a transparency effort that requires a governing body that is filling a vacancy on the council to hold a public meeting at least 7 days before voting, at which meeting the names of all persons being proposed for the vacancy are identified. The bill is in the House Privileges and Elections Committee.
VML Contact: Mark Flynn, markkflynn@gmail.com