eNews – January 26, 2024
Property tax exemptions approach $200 million annually, Continue to support one percent local option tax for schools...and more!
Friday, January 26, 2024/Categories: eNews
This edition of eNews is sponsored by Virginia Institute of Government which supports leaders at all levels of local government through professional development, equity clinics, certification for Treasurers and Commissioners of Revenue, customized training programs, and specialized consulting. Learn more >
In this issue:
Budget & Finance
Education
General Laws
Public Safety
Health & Human Services
Elections
Marijuana
Natural Resources
Utilities
VML News
Budget & Finance
Unfunded mandates requiring local property tax exemptions approaching $200 million annually
Last June we pointed out that the cost to local governments of providing mandatory property tax exemptions for disabled veterans and their spouses as well as the surviving spouses of soldiers killed in action had grown from $8 million in 2011 to $121 million in 2022, according to data collected by the Commissioners of the Revenue (COR). But we also noted that the information reported to the COR was incomplete.
That’s because localities have not been consistent about reporting data every year to the commissioners. To get a more accurate estimate of the cost of these property tax exemptions, VML staff updated the information reported to the COR, using the most recent year that data was reported by the locality, whether that was the current year (2023), last year (2022), or five years ago. Based on that analysis, mandatory tax relief provided by localities is estimated to be $188 million in 2023.
This updated information was provided to the staff of the House Appropriations and Senate Finance & Appropriations Committee in December 2022 to make sure the staff were advised how much localities were paying out for property tax exemptions required by the Commonwealth.
With that as background, mandatory local tax relief is once again on the table.
The Subcommittee on Resources of the Senate Finance & Appropriations Committee (SFAC) recommended that SJ 3, SB4, and SB240, be reported to the full SF&AC Committee. All these bills were sponsored by Senator McPike. If enacted, these bills would require a referendum this November, that if approved by the voters, would expand the current property tax exemption to the surviving spouses of soldiers killed in action to include the surviving spouses of soldiers who died in the line of duty.
VML won’t oppose these bills but will continue to remind lawmakers about the cost to localities of property tax exemptions with an eye toward offsetting those costs with state resources. It’s sure to be a long haul.
VML Contact: Joe Flores, jflores@vml.org
Local concerns generate statewide solutions
Several bills that appear to be targeted at issues bubbling up in two communities are generating conversations about the implications of these proposed solutions for localities across the Commonwealth.
The first set of bills are HB1483 (McQuinn) and SB294 (DeSteph) that are designed to address some of the problems restaurant owners in the City of Richmond have been experiencing related to meal tax collections. In response, the city has announced measures designed to address the concerns of restaurant owners. The problem with the bills is that the solutions would apply to every locality in Virginia, even localities where meals tax collections are not an issue.
VML staff have met with the patrons to convey our concerns and are hopeful that solutions can be assembled to ensure that the core concerns generating these bills are addressed.
The second set of bills include HB655 (Coyner) and SB645 (Aird) that focus on addressing issues surrounding “fiscal distress” being reported about the City of Hopewell. Again, the problem is that the solutions designed to address the situation in that locality may have ramifications for all counties, cities, and towns (at least ones flagged as being in “fiscal distress”), according to the Auditor of Public Accounts (APA). It’s imperative that we avoid “fixing” a problem for one community at the expense of other local governments.
As a reminder, the bills codify and expand upon language that has been in the Appropriations Act that established a process and plan to work with localities identified as in “fiscal distress” by the APA.
But the bills go further, authorizing a more assertive role for the Governor to intervene in the fiscal operations of a locality if the Commission on Local Government, which will assume additional responsibility under the bill, determines that “a locality is either unwilling or unable to comply with the conditions necessary to address its fiscal distress.” Moreover, the bills allow the Governor to “use all powers available to him to intervene for the purpose of addressing such fiscal distress.”
VML staff have had productive conversations with the patrons of the bill during the last two weeks to understand their intent and concerns. We will keep the lines of communication open in the days ahead.
VML Contact: Joe Flores, jflores@vml.org
Education
One percent sales tax for schools bills: Contact House Finance Committee members to support!
HB600 (Kilgore) / HB805 (Rasoul) allow the statewide authority for counties and cities to impose a one percent sales and use tax if approved via referendum dedicated solely to school construction and renovations have both been referred to the House Finance Committee. While these have not been docketed, we encourage members to please reach out to your representatives on the committee to support this legislation.
This is a legislative priority for VML. Please reach out to Josette Bulova (jbulova@vml.org) for more information or any additional documents to share with legislators.
House Finance Committee Members
VML Contact: Josette Buolva, jbulova@vml.org
Education legislation that passed this week
SB609 (Aird), SB227 (Hashmi), SB228 (Hashmi), and SB128 (VanValkenburg) all address different recommendations and policy changes from the JLARC Standards of Quality (SOQ) report that was released over the summer. Read the JLARC report here >.
These bills passed out of the Senate Education and Health, Public Education Subcommittee. SB609, SB227, and SB228 will be heard in full committee next week. SB128 has been referred to the Senate Finance and Appropriations Committee.
VML supports all these bills. Endorsing the passage of all JLARC recommendations is one of VML’s legislative priorities.
VML Contact: Josette Buolva, jbulova@vml.org
Education legislation opposed by VML
HB1164 (Scott) and HB1296 (Griffin) create 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. VML opposes these bills which would divert needed funding from public education. These bills have been referred to the House Education Committee.
VML Contact: Josette Buolva, jbulova@vml.org
General Laws
Reported out of the Senate General Laws Committee
SB36 (Locke) Virginia Freedom of Information Act; definition of meetings. Defines “public business” and codifies that three or more members of a public body may appear and participate in certain public meetings without violating the Freedom of Information Act provided that no public business is transacted or discussed.
SB215 (Perry) Virginia Freedom of Information Act; release of criminal investigative files exception. Exempts a victim’s insurance company and attorney from the prohibition on releasing victim information. Currently, if the public body has received a request for a criminal investigative file the victim or the designated representative there is a 14-day period in which a petition for injunction could be filed this bill allows the victim or designated representative to waive the 14 days.
SB244 (McPike) FOIA; meetings held through electronic communication during declared states of emergency. Provides that meetings by electronic means due to a state of emergency stated in FOIA are declarative of existing law since March 20, 2020. Any meeting by a public body that took place from March 20, 2020 to July 1, 2021 along with the actions taken during those electronic meetings are validated with respect to FOIA if all the notice and access requirements were met.
SB324 (Roem) Virginia Freedom of Information Act; charges for production of public records. Requires public bodies to provide one hour of the first request by a requester during a calendar year free of charge when filling a FOIA request. The cost after that first hour shall not exceed $40/hour and there should be a record kept of the requests received with the costs. This would last for a year and would result in a study next year on FOIA costs.
SB415 (Stuart) Virginia Freedom of Information Act; definition of “meeting”. Amends the definition of “meeting” to add an exception for local political party meetings.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Reported out of the House General Laws Committee
HB894 (Bennett-Parker) Virginia Freedom of Information Act; electronic meetings. Changes the current rule that local and regional public bodies other than local governing bodies, local school boards, planning commissions, architectural review boards, zoning appeals boards, and boards with the authority to deny, revoke, or suspend a professional or occupational license, to convene as 25% or no more than 2 times per calendar year as each such public body deems acceptable in its individual remote participation meeting policy, to be adopted at least once annually by recorded vote at a public meeting to 50% or 2 times.
HB1040 (Bennett-Parker) Virginia Freedom of Information Act; definition of “caregiver,” remote participation in meetings. Allows a person with a disability or a caregiver as defined to participate in a meeting remotely and be counted are part of a quorum.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Reported out of the House Counties, Cities and Towns Committee
HB467 (Simon) Real estate contract disclosures, certain; establishment by localities prohibited. Prohibits localities from establishing or enforcing a mandatory disclosure requirement for a real estate licensee, any party to a contract for the sale or listing of residential real property, or any authorized agent of such party. The bill provides that prohibited mandatory disclosures include mandatory notifications in contracts, contract amendments or addenda, advertising, other promotional materials, and subsequent deeds after the initial deed is recorded, related to the sale of residential real estate.
HB755 (Walker) Industrial and commercial areas; civil penalties for certain local property violations. Increases the civil penalty for industrial and commercial areas from a total fine that cannot exceed $3,000 in a 12-month period to $6,000 in a 12-month period.
HB644 (Sullivan) Gas-powered leaf blowers; local prohibition or regulation, civil penalty. Allows a locality to prohibit or regulate the use of gas-powered leaf blowers and allows the locality to impose a civil penalty.
HB1486 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.
HB1488 (Henson) Local government; standardization of public notice requirements for certain meetings, hearings, etc. This is a clean-up bill from the code commission regarding public notice requirements. The revisions include amending the frequency for publishing notices in the newspapers, the number of days required to elapse between the publication of notices and the amount of information to be contained in each notice.
Charter bill
HB376 (Gilbert) Charter; Town of New Market.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Bill going to the Housing Commission
SB233 (Hashmi) Faith in Housing for the Commonwealth Act; construction of affordable housing. This proposed legislation would have allowed religious organizations to construct affordable housing with disregard to the locality’s zoning.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Public Safety
Legislation proposes new funding sources to benefit localities
HB1043 (Sickles / Austin) creates the “Virginia Fire Personnel and Equipment Grant Program” to be administered by the Department of Fire Programs that would award grants on a competitive basis to localities with such funds as may be available. Funds would be used to help hire new, additional full-time firefighters; convert part-time or volunteer firefighters to full-time, or recruit and retain volunteer firefighters. The bill has been referred to the Public Safety & Transportation Subcommittee of the House Appropriations Committee. VML supports efforts to help with recruitment and retention for the many local workforce needs.
HB1484 (Campbell) creates a Virginia Public Safety Communications Infrastructure Fund and Program, to be administered by the Department of Emergency Management and financially managed by the Virginia Resources Authority. The Fund would make loans and award grants to local governments to assist with improvement projects relating to public safety radio and communications infrastructure. Preference would be given to fiscally distressed and more rural jurisdictions. The bill has been referred to the House Appropriations Committee. VML supports efforts to help localities with communication infrastructure costs.
VML Contact: Janet Areson, jareson@vml.org
Photo speed enforcement bills moving forward
SB73 (Craig) eases current standards that require a sworn officer to evaluate photo enforcement media to confirm a violation has occurred by allowing a retired law enforcement officer to review photo enforcement media to assess whether a violation has occurred. SB73 should be heard by the full Senate next week.
SB336 (Roem) expands the locations where state or local law enforcement may operate photo speed monitoring devices to include high risk intersections segments. High risk intersection segments are defined in the bill those road segments where a pedestrian fatality has occurred since January 1, 2014. SB336 advanced out of the Senate Transportation Committee with a bipartisan vote of 10-5 and should be heard by the full Senate next week.
VML Contact: Mitchell Smiley, msmiley@vml.org
Health & Human Services
Juvenile detention bills present challenges to local governments
SB438 (Suetterlein) requires all members and alternates for a juvenile detention home, group home, or residential care facility commission to have a background in law enforcement or corrections. VML opposes this bill because it removes the authority of local governments to appoint members who bring a variety of expertise and voices (e.g., finance, rehabilitation, education, behavioral health) to such commissions. The bill has been referred to the Senate Courts of Justice Committee.
HB1438 (Wiley) requires local governments to provide enhanced retirement benefits for hazardous duty service to juvenile detention specialists beginning July 1, 2024. This would put these employees in a different stance than other public safety personnel in local governments. VML opposes such a mandate. However, VML would not oppose allowing local governments to include such employees in the category for enhanced retirement benefits. The bill has been referred to the House Appropriations Committee’s Compensation Subcommittee.
VML Contact: Janet Areson, jareson@vml.org
Jail fee bill continues to be a work in progress
HB912 (Shin), as introduced, proposed caps on certain fees and costs in local and regional jails. The bill was amended this week to address how funds collected in jail stores/commissaries would be used by the jail; namely, that these funds be used within the facility for educational, recreational, or other rehabilitative purposes for the benefit of the inmates. A subcommittee of the House Public Safety Committee recommended the proposed substitute on Jan. 25, but with the thought that additional amendments may be made to the bill before it is taken up by the full committee next week.
VML is monitoring the bill and any additional amendments to it. We support renewed state support for local and regional jails; we are still working to make up for reductions in state support made during the Great Recession (2009-2010).
VML Contact: Janet Areson, jareson@vml.org
Elections
Elections legislation of concern
HB907 (Kent / Green) would require all voting systems to produce a printed receipt for each vote cast. Out of the four voting systems Virginia currently uses, none of the machines can accommodate this making this legislation extremely expensive to localities. This bill has been referred to House Privileges and Elections. HB907 is identical to SB303 which was passed by indefinitely by a vote of 8 to 6 in the Senate Privileges and Elections Committee on Tuesday.
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. VML has two significant concerns with this bill. First, VML has a long-standing position that local government should not be partisan since filling potholes, police, etc. are not partisan issues. Second, the Federal Hatch Act makes it illegal for any federal employee to participate in any partisan election (i.e., those in which the party identification is shown on the ballot). For cities and towns in Northern Virginia, Tidewater, and places like 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 her federal position due to Hatch Act issues directly affected by HB254. The bill has been referred to the House Committee on Privileges and Elections.
VML Contact: Josette Bulova, jbulova@vml.org
Marijuana
Retail cannabis market legislation updates
SB448 (Rouse) is the consolidated Senate cannabis after the Senate Rehabilitation Subcommittee on Cannabis combined Senator Ebbin’s SB423 into SB448 this week. There are several meaningful distinctions between the two bills. SB423 has a House companion HB698 carried by Delegate Krizek (explained below). SB448 is now the Senate vehicle for cannabis bills and passed out of the Senate Rehabilitation and Social Services Committee by a vote of 10-5 Friday morning. SB448 is expected to be considered in the Senate Courts of Justice Committee before heading to the Senate Finance and Appropriations Committee prior to consideration by the full Senate.
SB448 includes authority for a local option referendum to opt of retail marijuana sales and local ordinance authority for public use and possession on school properties. Half of the 12 percent state tax collected under the bill is to be distributed to localities based on the sales that have occurred within a locality. SB448 protects local land use authority to make decisions regarding the placement of cannabis retailers.
HB698 (Krizek) is the House cannabis retail legislation that provides for the retail sale of cannabis products from existing medical dispensaries as early as July 2024. This bill provides local referendum authority to opt out of retail cannabis sales as well as local authority to levy a local option 6 percent tax with at least 50 percent of locally collected revenues required to be used for school construction, teacher salaries, to support individuals from disadvantaged communities, or the Virginia Indigent Commission. HB698 does not include any local land use authority.
HB698 has not yet been heard in committee and as of Friday afternoon has yet to be docketed in Subcomittee. It is expected HB698 will first be heard in the House General Laws Subcommittee on ABC and Gaming.
VML Contact: Mitchell Smiley, msmiley@vml.org
Natural Resources
Animal cruelty bill expands local authority to create an offender registry
SB93 (Stanley) allows localities to establish an animal cruelty registry for felony convictions of animal cruelty, animal fighting, maiming, killing or poisoning, or killing or injury to a police animal. The registry will be for public access and can be published on the locality or local police department website. The registry can include the name of the offender and the address at the time of conviction as well as the offense for which they were convicted. SB93 will be heard by the full Senate next week.
VML Contact: Mitchell Smiley, msmiley@vml.org
Utilities
Utility disconnection bill amended and moving in the House
HB906 (Shin) establishes new standards for utility disconnections for non-payment by prohibiting the disconnection of utility service by municipally owned or SCC regulated utilities (drinking water, wastewater, electricity or gas) when temperatures are forecasted to within 24 hours after the disconnection be above 92 or below 32 degrees Fahrenheit, on Fridays or state holidays. The bill also sets out procedures and communications required by any utility prior to disconnection while limiting the amounts of deposits that can be collected by utilities prior to re-establishment of service after disconnection. This legislation also creates a study to be commissioned by the Commission on Local Government and the State Corporation Commission to examine the types of utility disconnection data that is feasible to collect as well as data on disconnection costs and arrearages.
HB906 was amended in subcommittee in a manner that removed provisions that were particularly problematic including a $1,000 civil course of action for violating the newly created standards for disconnections as well as removing the data collection requirements which are now part of the study created by the bill. The subcommittee also removed language in the introduced bill that would have prohibited disconnections due to nonpayment when the temperature was forecast to be above 95 degrees heat index.
HB906 was advanced out of House Labor and Commerce Subcommittee and full Committee on a bipartisan basis by a vote of 15-6.
VML Contact: Mitchell Smiley, msmiley@vml.org
VML News
Eligibility for 2024 “If I Were Mayor” essay contest expanded to 7th and 8th graders
Deadline to enter is Monday, March 18
The Virginia Municipal League (VML) invites 7th and 8th grade students who reside or attend school in a VML member locality* during the 2023-2024 school year to submit an entry for our “If I were Mayor” essay contest.
*The full list of VML member localities is available here >.
Eight regional winners selected from around the state will each receive a $150 gift card and a plaque. One statewide winner chosen from the regional winners will receive a $250 gift card and a plaque. The runner-up from the region that receives the statewide award will become that region’s winner.
Winning essays will be featured in the May issue of VML’s magazine Virginia Town & City.
What's new for 2024: In past years, the essay content was limited to 7th graders. Beginning this year, participation has been expanded to include both 7th and 8th graders.
Complete rules and regulations as well as instructions on how to submit entries and a link to view past winning entries are available here >.
VML Contact: Manuel Timbreza, mtimbreza@vml.org