eNews – March 1, 2024
VML letter to budget conferees identifies critical items, Cannabis retail market legislation heads to Governor...and more!
Friday, March 1, 2024/Categories: eNews
This edition of eNews is sponsored by PMA Architecture. Established in 1975, PMA Architecture is a celebrated design, preservation & planning firm well-versed in community design, architecture & interior design. Learn more >
In this issue:
Budget
General Laws
Cannabis
Human Services
Opportunities
VML News
Budget
VML letter to budget conferees identifies items critical to local governments
Yesterday (February 29) VML staff hand delivered a letter to the office of each of the twelve members of the House and Senate who were recently named conferees on the budget (see list below).
Read the letter here >
Our list of priorities is not exhaustive. Frankly, it cannot be when the budget conferees are charged with reconciling more than 1,200 budget amendments. We had to prioritize (just like the conferees will need to do when finalizing a budget deal). The letter highlights the critical items that VML believes are most important as negotiators begin to bridge their differences.
As expressed in the letter, VML’s top two priorities simply ask that the Commonwealth fulfill its commitment to 1) provide annual hold harmless payments to local school divisions, consistent with the Code of Virginia and 2) fully-fund the Water Quality Improvement Fund, as it has always done.
We ask you to reach out to the budget conferees on these important items as they begin budget negotiations in earnest in the coming days.
House Budget Conferees:
- Luke E. Torian (D - Prince William)
- Mark D. Sickles (D - Arlington)
- David L. Bulova (D - Fairfax
- Betsy B. Carr (D - Richmond
- Terry L. Austin (R - Botetourt)
- Robert S. Bloxom, Jr. (R - Accomack)
Senate Budget Conferees:
- L. Louise Lucas (D – District 18)
- R. Creigh Deeds (D – District 11)
- Mamie E. Locke (D – District 23)
- Jennifer B. Boysko (D – District 38)
- Ryan T. McDougle (R – District 26)
- Todd E. Pillion (R – District 6)
VML Contact: Joe Flores, jflores@vml.org
General Laws
Two problematic short term rental bills
SB544 (Bagby) Short-term rental property; locality’s ability to prohibit use of an accessory dwelling unit. This bill states that no local short-term rental ordinance enacted after December 31, 2023, shall require a special/conditional use permit for the use of a residential dwelling as a short-term rental if the dwelling is occupied by the owner as his primary residence.
HB1461 (Mundon King) Short-term rental property; locality’s ability to prohibit lessee or sublessee operator. This bill allows a locality to require as part of their registry an attestation that a property owner has granted permission to use property as a short-term rental if the operator is a lessee or sublessee. No local ordinance can prohibit an operator from offering a property as a short-term rental solely on the basis that such operator is a lessee or sublessee – however localities can limit a lessee or sublessee to one short-term rental.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Bills that are on the floor of the chambers
SB701 (French) Vested rights; building permits. Provides that if a locality has issued a building permit, despite nonconformance with the zoning ordinance, and a property owner, relying in good faith on the issuance of the building permit, incurs extensive obligations or substantial expenses in diligent pursuit of a building project that is in conformance with the building permit and the Uniform Statewide Building Code, the locality shall not treat such building as an illegal use but rather as a legal nonconforming use. Current law requires that such a project be completed, and a certificate of occupancy issued in order to receive such protection.
HB1398 (Bennett-Parker) Affordable housing; creates framework for localities to preserve housing. Authorizes localities to implement an ordinance that requires an owner to accept a right of first refusal offer by a locality or designee to preserve affordable housing for a period of not less than 15 years.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Local government development rights bill sent to the Housing Commission
HB878 (Bulova) Affordable housing; purchase of development rights. This bill would have allowed local government to purchase development rights or accept the donation of development rights in an effort to preserve affordable housing.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Bills for which further changes are anticipated
HB818 (Cherry) Virginia Freedom of Information Act; amends definition of meeting, provisions of Act.
SB597 (McPike) Affordable housing; local zoning ordinance authority, comprehensive plan.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Cannabis
Legislation for retail sales of cannabis heads to the Governor
On Wednesday of this week, The Virginia General Assembly approved SB448 (Rouse) and HB698 (Krizek) to legalize the retail sale and production of cannabis. The package is now with Governor Youngkin for consideration. This legislation includes local authority that VML has advocated for since 2021, including local referendum, taxation, land use, and ordinance authority to prohibit the use and sharing of cannabis in public and on school grounds and to regulate hours of operation for retailers.
While Governor Youngkin has made it clear he does not want to sign legislation to create a regulated recreational market for cannabis and cannabis products, the 2024 Virginia General Assembly has made it equally clear that they can agree on what such a proposal might look like including what role localities should play in a future market.
The legislation passed by the General Assembly allows retail sales to begin May 2025 with licenses distributed beginning in November 2024. Local referendums to prohibit retail sales would need to be held prior to the end of 2024. Licensing would be regulated and administered by the Cannabis Control Authority. During the licensing process the CCA must notify localities of proposed licensees and provide the locality with 30 days to provide objections to proposed licenses in that locality.
As passed by the House and Senate, the legislation provides local authority for cities, towns, and counties to hold a referendum to opt out of retail sales, levy a local tax of 2.5 percent on retail sales and include necessary authority to make land use decisions regarding cannabis retail operations. SB448 and HB698 also include ordinance authority for localities to regulate the hours of operation of cannabis retailers and the authority to adopt local ordinances to prohibit the consumption or offering of cannabis in public places and the consumption or possession of cannabis and cannabis products on school grounds.
As outlined in the below chart, the State tax would levy an 8 percent tax on retail sales and an additional 1.125 percent tax which, in addition to the local option 2.5 percent tax, places the total tax rate at 11.625 percent. This is significantly lower than the proposed Senate rate of close to 18 percent but higher than the House proposed 9 percent rate that was considered prior to the final compromise rate. State revenues are restricted to specific uses while local revenues are collected by the state and distributed to localities quarterly with no restrictions on how those revenues can be used.
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Tax
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Rate
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State
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8%
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State Retail Sales and Use Tax
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1.125%
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Local Option
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2.5%
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Total Tax Rate
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11.625%
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SB448 and HB698 recognize that localities have an important role to play in a regulated retail cannabis market. These bills are in line with the principles that the Virginia Municipal League has adopted since the General Assembly and then Governor Northam decided to legalize the possession, personal cultivation, and sharing of cannabis. VML will continue to advocate the necessity and prudence of local authority on the issue of cannabis retail sales as discussions in Richmond continue.
VML Contact: Mitchell Smiley, msmiley@vml.org
Human Services
Social services bills meet mixed fates
The House Appropriations Committee tabled both SB70 (McPike), which would require every local department of social services to offer a voluntary employment and training program for SNAP (food stamp) program participants; and SB40 (Favola) which would require a state task force to assess potential new requirements for local departments of social services regarding additional benefit applications and creating trusts or accounts for children in foster care. Both bills carried state and local fiscal impacts.
While SB70 was unsuccessful, HB992 (Tran) could help address what SB70 sought to do. HB992 was reported by the Senate Committee on Rehabilitation and Social Services on March 1. HB992 directs each local department of social services to enter into a written agreement with its local workforce development board to provide for coordinated workforce development services to participants in the Virginia Initiative for Education and Work (VIEW) program and those in the Supplemental Nutrition Assistance Program Employment and Training (SNAP) program who choose to participate in such a program. The bill is headed to the Senate floor.
A bill to help address social work workforce issues cleared the Senate Finance & Appropriations Committee on Feb. 29. HB326 (Glass) authorizes Virginia to become a signatory to the Social Work Licensure Compact, which allows social workers are eligible for an active, unencumbered license in the compact member state where they reside to apply for a multistate license. After verifying eligibility, the social worker is granted a multistate license that authorizes practice in all other compact member states. This compact only goes into effect when enacted by a seventh member state. The bill is headed to the Senate floor.
VML Contact: Janet Areson, jareson@vml.org
Opportunities
2024 National Stormwater Policy Forum: Hybrid event happening April 8
The 2024 National Stormwater Policy Forum, a half-day event co-led by the Water Environment Federation (WEF) and the National Municipal Stormwater Alliance (NMSA), will take place during Water Week on Monday, April 8 beginning at 12:30 p.m. and concluding at 5:00 p.m.. Co-hosted by the National League of Cities (NLC) and the National Association of Counties (NACo), the event provides an opportunity for WEF, NMSA, NLC and NACo members and others to learn about current policy issues driving the stormwater sector today.
Register to attend in person (Washington D.C.) or virtually.
NLC Contact: Carolyn Berndt, berndt@nlc.org | (202) 626-3101
VML News
Registration now open for Matt Lehrman’s keynote address at the VMCA conference
VML is pleased to present keynote speaker Matt Lehrman on the final morning of the Virginia Municipal Clerk's Association (VMCA) conference.
- Date: Friday, April 19
- Time: 8:00 a.m. - 12:00 p.m.
- Location: DoubleTree Hilton, Charlottesville
- Registration: Available here >
Attendees of recent VML Annual Conferences know that Matt is a dynamic speaker whose interactive presentations utilize technology to be both engaging and educational.
About the speaker: Matt Lehrman is the co-founder and managing director of Social Prosperity Partners—an Arizona-based consulting firm dedicated to the proposition that “Where people work together courageously, their potential is unlimited.” In addition to delivering inspiring keynotes and substantive workshops on topics of civility and collaborative leadership, Matt’s Social Prosperity Partners practice specializes in strategic planning services for municipalities, civic associations, and nonprofit organizations.
About the presentation - "A Community of Possibilities: Advancing Beyond Civility to Visioning"
The ultimate responsibility of local government isn’t just infrastructure, it’s “Idea-structure” — the ongoing process of involving, connecting, and empowering the diversity of its community members toward a mutually desired future. Here’s what every municipal leader should understand about their role as a guardian of responsible and inclusive civic participation.
VML Contact: Rob Bullington, rbullington@vml.org
VML now accepting submissions for “If I Were Mayor” essay contest for 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.
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.
Complete rules and regulations as well as instructions on how to submit entries are available here >.
VML Contact: Manuel Timbreza, mtimbreza@vml.org