Virginia Municipal League

Building Better Communities Through Sound Government

BETTER COMMUNITIES THROUGH SOUND GOVERNMENT

eNews Feb. 11, 2020

Tuesday, February 11, 2020 - 05:52pm

In this issue:

Action Alert

Legislation updates

Economy, Budget & Finance

Transportation

Environment

Elections

 

Election legislation will have a fiscal impact for localities

The General Assembly and Administration have prioritized making significant changes to election accessibility in Virginia, introducing a number of bills that will change the way localities conduct elections. These are:

Collectively, minimum preliminary estimates for these bills run well over $20 million in Fiscal 2021 alone. However, none of the fiscal impact statements (FISes) prepared by state agencies account for the extensive costs localities will face as a result.

Contact the money committees!

Reach out to relevant members of the General Assembly’s money committees to support the following measures which will increase funding for localities to implement this year’s elections changes.

  • The Governor’s 2020 Introduced Budget includes $5 million across the biennium to fully fund the salaries of general registrars statewide.
  • At the request of VML and VACo, Senator Deeds has introduced budget amendment language (Item 86, #6s) to reallocate federal funds from the Help America Vote Act (HAVA) to assist localities meet statewide election security standards.
  • Senator Deeds has also introduced a budget amendment (Item 86, #12s) for $10 million across the biennium to help localities implement early voting measures.

Download a PDF summarizing this issue with contact information for all money committee members here >

VML Contact: Jessica Ackerman, jackerman@vml.org

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Legislation updates

Plastic bag taxes need your help

The Senate and the House are advancing plastic bag tax bills with significant differences. VML believes that at this point, these proposals should be advanced out of each chamber and improved in conference.

VML supports a local option tax and local retention of revenues raised by plastic bag taxes.

SB11 (Ebbin) proposes a statewide tax of 5 cents on each disposable plastic bag distributed by retailers, with 2 cents retained by the retailer until 2022 when retailers would retain 1 cent of the tax and the remaining revenue would be distributed to the general fund. The bill is on the Senate floor.

HB1151 (Lopez) grants local authority to tax plastic bags with retailers retaining 1 cent and the remaining revenue directed to the Water Quality Improvement Fund and the Virginia Natural Resources Commitment Fund. The bill passed the House on Feb. 10.

HB534 (Carr) proposes a statewide tax on plastic bags with 1 cent retained by retailers and the remaining revenue directed to the Water Quality Improvement Fund and the Litter Control and Recycling Fund. The bill passed the House on Feb. 10.

VML Contact: Mitchell Smiley, msmiley@vml.org

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Collective bargaining bills differ on option vs. mandate

HB582 (Guzman) and SB939 (Saslaw) are the collective bargaining bills you’ve been hearing so much about. As introduced, SB939 is a local option and HB582 is a mandate. These bills are still being discussed and more amendments would not be surprising.

In the Senate, SB939 gives the authority to local governments to adopt ordinances to allow collective bargaining by their employees. Employees in those localities without such ordinances would continue to be prohibited from striking. The bill is on the Senate floor.

The House passed today on a 54 yes, 45 no vote HB582, which repeals the existing prohibition on collective bargaining by public employees. The bill creates a “Public Employee Relations Board” that would determine bargaining units and provide for certifications and decertification elections for bargaining representatives of state and local government employees. Click here to see how your delegate voted.

VML will be working on these bills the remainder of the session and will need your help.

VML Contact: Michelle Gowdy, mgowdy@vml.org

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Urge support of increased funding for stormwater/water quality

Gov. Northam has two significant budget proposals in the introduced budget to assist localities with water quality mandates. First, he proposed $120 million for the Water Quality Improvement fund to assist in paying for upgrades to locally-owned sewage treatment plants. Second, he proposed $182 million for the Stormwater Local Assistance Fund to assist localities with mandated urban runoff pollution controls. VML urges members to support this proposed.

Water Quality Improvement Fund – HB30 (Torian) and SB30 (Norment)

  • $120 million in Virginia Public Building Authority bond funding for the Water Quality Improvement Fund
  • WQIF is a cost-share competitive grant program to assist localities with wastewater treatment plant upgrades.
  • Localities are faced with many clean-water mandates, especially in pollution reduction from wastewater plants.

Stormwater Local Assistance Fund (SLAF) – HB30 (Torian) and SB30 (Norment)

  • $182 million in Virginia Public Building Authority bond funding for the Stormwater Local Assistance Fund. SLAF is a 50-50 cost-share for stormwater infrastructure planning and construction. It is a grant program administered by DEQ. It is competitive.
  • Localities are faced with many stormwater mandates. The Governor’s proposed $182 million proposal would yield, with local match, $364 million in projects.

VML Contact: Mitchell Smiley, msmiley@vml.org

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Utility easement bills impinge upon Constitutional amendment

HB831 (Carroll Foy) and SB794 (Lewis) allow broadband and other communications services to occupy existing or future easements already occupied by electric distribution or communications facilities without notice to the landowner. HB831 passed the House today. SB794 passed the Senate on Feb. 6.

The bills say:

It is the policy of the Commonwealth that…the use of easements, appurtenant or gross, to provide or expand broadband or other communication services (i) does not constitute a change in the physical use of the easement, (ii) does not interfere with, impair, or take any vested or other rights of the owner or occupant of the servient estate, (iii) does not place any additional burden on the servient estate other than a de minimis burden, if any; (iv) has value to the owner or occupant of the servient estate greater than any de minimis impact;…

In 2012, the General Assembly passed HB5 which was a Constitutional Amendment stating in part that the General Assembly “shall pass no law whereby private property, the right to which is fundamental, shall be damaged or taken except for public use. No private property shall be damaged or taken for public use without just compensation to the owner thereof…”

Many current members of the General Assembly voted in favor of the constitutional amendment including:  Bell, Bulova, Byron, Cole, Cosgrove, Cox, Dance, Fariss, Filler-Corn, Gilbert, Hodges, Head, Keam, Kilgore, Knight, Lopez, Marshall, Spruill, Torian, Ware, Watts, Webert, Wilt – Deeds, Hanger, McDougle, Newman, Norment, Reeves, Ruff, Stanley, Stuart and Vogel.

Ironically the current Governor also voted for the Constitutional Amendment.

VML Contact: Michelle Gowdy, mgowdy@vml.org

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FOIA legislation passes House

Two FOIA bills have passed the House and been referred to the Senate General Laws and Technology Committee:

  • HB321 (Levine) allows for a member of a public body to miss a meeting for a serious medical condition of an immediate family member in addition to the reasons already allowed for and states that a member can miss two meetings or 10% of meetings (whichever is greater) for these reasons.
  • HB722 (Reid) provides a Freedom of Information Act exemption for financial and proprietary records submitted with a loan application to a locality for the preservation or construction of affordable housing that is related to a US Dept. of Housing and Urban Development of VA Housing Development Authority  application until such time as the records are released by one of those two entities.

VML Contact: Michelle Gowdy, mgowdy@vml.org

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Workers’ compensation bills continue to progress

HB46 (Carter) states that when an employee makes a workers’ compensation claim, the Commission will order the employer to advise the employee within 30 days whether the employer accepts the claim, intends to deny the claim or lacks information to make a determination. This bill has passed the House.

HB438 (Heretick) and SB561 (Vogel) are the PTSD bills for fire-fighters and law enforcement. The bills, which are the same, state that a board-certified psychiatrist or psychologist with experience in PTSD shall make the diagnosis, there must have been a qualifying event and that event must be a substantial factor in the PTSD.  A qualifying event is an incident or exposure occurring in the line of duty on or after July 1, 2020:

  1. Resulting in serious bodily injury or death to any person or persons
  2. Involving a minor who has been injured, killed, abused, or exploited
  3. Involving an immediate threat to life of the claimant or another individual
  4. Involving mass casualties
  5. Responding to crime scenes for investigation

Both bills have passed their respective chambers.

HB783 (Askew) and SB9 (Saslaw) are the workers’ compensation presumption bills for firefighters and law enforcement. These bills would require 5 years of continuous service, would not require proof of exposure to a toxic substance and add testicular, colon and brain cancer to the list.

HB783 passed the House and has been assigned to the Senate Commerce and Labor Committee. SB9 has passed the Senate.

VML Contact: Michelle Gowdy, mgowdy@vml.org

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Procurement bills pass House and Senate

HB452 (Murphy) and SB650 (Boysko) increase to $200,000 the small purchases exemption in the Virginia Public Procurement Act for single or term contracts for goods and services that are not professional services. HB452 passed the House and has been assigned to the Senate General Laws and Technology Committee. SB650 has passed the Senate.

HB890 (Sickles) and SB341 (Locke) deal with construction management or design-build contracts with localities In their current versions, the project threshold is to be defined in procedures adopted by the Secretary of Administration. It is expected, however, that they will be amended to increase the $10M limit. HB890 passed the House and has been assigned to the Senate General Laws and Technology Committee. SB341 passed the Senate and has been referred to the House General Laws Committee.

HB1201 (Tran) and SB380 (McPike) allow localities to consider non-responsibility as a criteria in an invitation to bid. HB1201 has passed the House. SB380 has passed the Senate and been referred to the House General Laws Committee.

SB645 (Surovell) requires localities to ensure that solicitations for goods and services require the bidder to disclose information regarding pre-dispute arbitration policies and these policies and practices must be considered by the locality. However, there is an agreement that this bill will be amended to a local option when it is heard in the House. SB645 has passed the Senate.

VML Contact: Michelle Gowdy, mgowdy@vml.org

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Other legislation of interest still in play

PSAP training and equipment: SB720 (McClellan) and HB727 (Hope) would require each Public Safety Answering Point (PSAP) to provide training and equipment for dispatchers in high-quality telecommunicator cardiopulmonary resuscitation instruction.  SB720 has passed the Senate. HB727 has passed the House and has been referred to the Senate Commerce and Labor Committee.

Board of Zoning appeals:

  • HB370 (Bell) and SB292 (Deeds) clarify that a Board of Zoning Appeals member may also be an officer of elections.  HB730 passed the House and was reported from the Senate Local Government Committee unanimously on February 10.  SB292 has passed the Senate.
  • HB505 (Knight) states that when the court allows a writ of certiorari to review a board of zoning appeals decision and issues the allowance of a writ of certiorari the board of zoning appeals shall have 21 days to respond. Currently, there is no time limit.  HB505 passed the House and was reported from the Senate Local Government Committee on February 10.

Local government and Auditor of Public Accounts:

  • HB406 (Subramanyam) changes the annual deadline for localities to submit their comparative report of local government revenue and expenditures to the Auditor of Public Accounts from November 30 to December 15. HB406 passed the House and was reported from the Senate Local Government Committee on February 10.
  • HB760 (Aird) provides a penalty if a locality fails to report its audit in a timely manner and/or if the locality fails to provide the proper notices. The penalty includes a writ of mandamus and a fine up to $2,000. HB760 has passed the House.

Solar:

  • HB657 (Heretick) exempts solar projects of less than 150 megawatts from the requirement that it be reviewed for substantial accord with a locality comprehensive plan. This bill has passed the House and has been referred to the Senate Local Government Committee.
  • HB656 (Heretick) and SB875 (Marsden) allow zoning ordinances to include provisions that are national environmental protection and product safety standards for the use of solar panels and battery technology. HB656 has passed the House and has been referred to the Senate Local Government Committee. SB875 has passed the Senate.
  • HB1675 (Hodges) deals with solar energy facilities and requires a siting agreement with the locality if the locality has a census tract meeting the eligibility requirements for an opportunity zone. This bill has passed the House and has been referred to the Senate Local Government Committee.
  • HB655 (Heretick) and SB870 (Marsden) authorize a locality to require a conditional use permit for solar facilities of more than 5 megawatts and provides that the permit can include dedication of real property of substantial value, substantial cash payments for or construction of public improvements even if there is not a need directly generated by the solar project. HB655 has passed the House and has been referred to the Senate Local Government Committee. SB870 has passed the Senate.

Prevailing wages: SB8 (Saslaw) and HB833 (Carroll Foy) both deal with prevailing wage requirements for public works contracts. The Senate bill does not include localities, while the House version provides a provision in which a locality may adopt an ordinance to require a prevailing wage rate. Both bills have passed their respective chambers.

Civil penalty for numbering on building ordinances: HB106 (Cole, M.) provides for a civil penalty when enforcing visible numbering on a building ordinances. Currently it is only a criminal penalty. This bill has passed the House and has been reported from the Senate Local Government Committee by a unanimous vote.

Residential derelict buildings and civil penalties: HB150 (Samirah) provides that if a locality has a real estate tax abatement program, then a civil penalty can be assessed on a residential property after notice of the derelict building is provided in writing to the owner. This bill has passed the House and has been reported from the Senate Local Government Committee by a narrow margin.

Vegetation removal:

  • HB284 (Cole, J.) and SB225 (Stuart) authorize a locality to create an ordinance requiring an owner to remove vegetation that obstructs a driver’s line of sight if the property is within 5 feet of any public right-of-way; if the owner fails to take action after notice, the locality can remove the vegetation. HB284 has passed the House and has been referred to the Senate Local Government Committee. SB225 has passed the Senate.
  • HB549 (Ward) and SB340 (Locke) will be amended to grant any locality in the 23rd Planning District the authority to include cutting overgrown shrubs, trees and other such vegetation in an ordinance requiring landowners to remove such overgrown vegetation. HB549 passed the House and was reported from the Senate Local Government Committee with an amendment. SB340 has passed the Senate.

Specific property zoning: SB647 (Boysko) allows a locality to include in their zoning ordinance the option of allowing a development of a specific property to transfer jurisdiction in a friendly manner and continue to operate under the same approvals, terms, provisions and condition for an orderly transition. A House version of the bill HB632 (LaRock) died when it was passed by indefinitely by in the Local Government committee on February 10. The Senate version is expected to survive.

Comp plan changes: HB672 (Willett) requires localities to look at climate change when creating or updating their comprehensive plan, zoning ordinance and any regional strategic plan. This bill has passed the House and has been referred to the Senate Agriculture, Conservation and Natural Resources Committee.

Real property dedication: HB929 (Coyner) states that an approved final subdivision plat that has been recorded and dedicates real property to the local jurisdiction or public body and has been accepted will remain valid for an indefinite period of time. This bill has passed the House and has been referred to the Senate Local Government Committee.

City council salaries: HB1108 (Hudson) removes the salary cap on city council members. This bill has passed the House and has been referred to the Senate Local Government Committee.

In-kind resources for firefighting and EMS agencies: HB343 (Bell) and SB465 (Reeves) deal with in-kind resources for volunteer firefighting and emergency medical services agencies and can include contract management services for capital projects, assistance in preparing requests for information, bids, or proposals and budgeting services.  Both bills have passed their respective chambers.

Zoning administrator notice for use of water capacity: SB589 (Hanger) allows a zoning ordinance to include a provision which requires the zoning administrator to provide notice to adjacent properties when the zoning administrator determines that a use could impair the ability of an adjacent property to satisfy the minimum storage capacity and yield requirements for a residential drinking well. The bill passed the Senate and has been referred to the House Counties, Cities and Towns Committee.

Comprehensive plan bills:

  • HB726 (Reid) and SB746 (Bell, J.) extends the time by which a governing body approves or disapproves a locality-initiated comprehensive plan amendment from 90 to 150 days. This bill has passed the House and been referred to the Senate Local Government Committee.
  • HB585 (Guzman) stipulates that any city with a population greater than 20,000 and counties over 100,000 in population shall consider incorporating transit-oriented development into its comprehensive plan.  The bill passed the House and was reported with an amendment from the Senate Local Government Committee on February 10.

Wireless infrastructure approvals: HB554 (VanValkenburg) allows a locality to disprove an application if the applicant was not given written notice to adjacent landowners at least 15 days before it applies to locate a new structure in the area.  The bill has passed the House and been referred to the Senate Local Government Committee.

Affordable housing: HB1101 (Carr) and SB834 (McClellan) allow localities to create ordinances (should they wish) and utilize the provisions in the bills. These bills allow zoning ordinances to provide flexibility in density, waivers of parking and fees, a local housing fund and other items to incentivize affordable housing.  HB1101 passed the House and has been referred to the Senate Local Government Committee. SB34 has passed the Senate and has been referred to the House Counties, Cities and Towns Committee.

Codification of ordinances: HB769 (LaRock) states that if a person is subject to a violation of an ordinance that is not codified, they are entitled to assert the lack of codification as an affirmative defense and a failure by the locality to provide adequate notice of the contents of the ordinance. The bill was tabled in the House Courts of Justice Committee by unanimous vote on February 7.

Floodplain: HB998 (Hayes) provides that a locality may adopt an ordinance to regulate the activity in a flood plain consistent with any state or federal flood plain management program and requirements. The bill has passed the House and will be heard in Senate Local Government.

Capacity for sewer and water facilities: SB360 (Cosgrove) allows for a locality to require a developer to build sewer and water facilities with more capacity than needed and recoup the cost difference on an off-site if within the utility service plan of the service area. This bill has passed the Senate.

Water and sewer collections: SB826 (McDougle) takes away local government authority to collect delinquent water and sewer charges above $300 from a property owner if the tenant is delinquent and reasonable collection efforts have been made. Under current law, liens cannot exceed more than 3 months of fees and charges; the proposed cap of $300 prohibits localities from recovering the true cost of providing water and sewer and places a burden on other users of the system.  This bill has passed the Senate.

Monuments: HB1537 (McQuinn) and SB183 (Locke) allow localities to remove, relocate, contextualize, cover or alter any monument of memorial in the locality’s public property upon affirmative vote of its governing body. Prior to moving the monument or memorial, the local governing body shall for 30 days offer the monument or memorial for relocation to any museum, historical society, government or military battlefield. The governing body is given the sole authority to dispose of such.  Both bills have passed their respective chambers on somewhat close votes.

“Ban the Box” bill: HB757 (Aird) prohibits localities from inquiring about arrests, charges or convictions on employment applications unless the position is “sensitive.” This bill has passed the House and has been referred to the Senate General Laws and Technology Committee.

VML Contact: Michelle Gowdy, mgowdy@vml.org

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Economy, Budget & Finance

Minimum wage to rise under House, Senate bills

House and Senate legislators have until the end of Tuesday’s legislative session to push through their respective measures (SB7 and HB395) to increase the state’s minimum wage.

Both bills expand the definition of “Employer” to include “the Commonwealth; any of its agencies, institutions, or political subdivisions; and any public body.”  Political subdivisions include localities.

There are also provisions in the two measures that would empower the VEC Commissioner to adjust the hourly minimum wage beginning in 2026 according to a statutory formula that is based in part on the Consumer Price Index.

The Senate proposal does include a separate enactment clause requiring the VEC to review the potential impact or consequences of setting up a regional minimum wage in lieu of a statewide rate. The study is to be completed by November 30 of this year with the findings and recommendations submitted to the General Assembly in time for the 2021 Session.

SB7 also includes language defining “home care providers” and including their employees as eligible for the minimum hourly wage.  Unlike the July 1, 2020, start-date under HB 395, the provisions of SB 7 wouldn’t kick in until January 1, 2021.

The table below highlights the wage hikes in the two bills.

VML Contact: Neal Menkes, nmenkes@vml.org

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President and Congress set to start budget tango

Depending on which eye is open and which closed the national economic data reads like a “can’t put it down” best seller or a “Perils of Pauline” cliffhanger.

The U.S. economy added 225,000 jobs in January, which is well above the forecast consensus of 164,000. January was the 112th straight month of job growth since 2010. Average hourly earnings were up 3.1 percent from a year earlier with wages rising fastest for people at the bottom of the earnings ladder. Consumer confidence is strong.

For only the second time since the federal government began keeping records, women outnumber men in the American workforce. The labor force participation rate has been edging up despite baby boomer retirements. And, in a tightening labor market, employers are scrambling to find workers and are hiring candidates who have been traditionally shunned and offering flexible work schedules and other perks.

But not all the news is good. Business investment has fallen for three straight quarters. Manufacturers have shed 12,000 jobs, with most of the losses coming from the automobile industry. Problems at Boeing as well as concerns about the coronavirus are problematic. And, despite the new trade agreement signed by the U.S., Mexico and Canada and the Phase 1 truce between the U.S. and China, it’s doubtful that an American manufacturing rebound can occur without a global economic recovery.

Perhaps the most important economic measure is economic growth. This is critical in terms of increasing employment and improving living standards. It is a measure that is hotly debated along partisan lines in Washington.

According to the Congressional Budget Office (CBO), from 1950 to 1975 the U.S. economy grew about 4 percent a year. Since then, growth has gradually decelerated to a range of 2 percent to 3 percent. For the next decade, the CBO projects 0.5 percent gains in the labor force and productivity gains of 1.4 percent. That’s almost 2 percent in economic growth, and although promising in calming fears of inflation and reducing the risks of recession, it is a stretch to describe such growth as evidence of a booming economy.

This is the background as President Trump prepares to submit his budget proposal to Congress. News accounts report a $4.8 trillion budget with almost a $1 trillion deficit in 2021. The proposed budget is said to embrace $2 trillion in cuts to non-defense discretionary programs, including but not limited to Medicaid, food stamps, community development block grants, Centers for Disease Control and Prevention, home heating assistance, housing, environmental protection, and agriculture.

Increased spending for defense and homeland security for the southern border wall along with the proposed cuts is certain to arouse congressional opposition.

The upcoming budget struggle in Washington has significant implications for the Commonwealth. The federal government accounts for about $1 out of every $5 of economic activity in the state. Virginia ranks first among all the states for the net benefits it receives from the federal government. Even the arrival of Amazon HQ2 in Arlington will not change the dominant role played by the federal government in the state’s economy.

The influence of federal spending is not restricted to just Northern Virginia. A recent article from the Associated Press pointed out that the economy in Hamptons Roads is expected to grow this year in large part because of a surge in military spending. The Dragas Center for Economic Analysis and Policy at Old Dominion University’s Strome College of Business reported in its review of the region’s economy in 2020 that about 40 percent of economic activity in Hampton Roads is connected to the Department of Defense. Military spending contributed more than $21 billion to the regional economy in 2019 and is expected to rise to about $23 billion in 2020.

As the General Assembly works through its amendments to Gov. Northam’s budget bill, legislators will be wise to not ignore the impact of federal spending on the state’s economy and state agencies.

VML Contact: Neal Menkes, nmenkes@vml.org

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Money Committees meet Sunday as prelude to amend Gov. Northam’s proposed budget

House Appropriations and Senate Finance & Appropriations will meet Sunday at 1:00 p.m. and 4:00 p.m., respectively, to report their respective budget amendment packages. Although the two committees will release their subcommittee reports on Sunday, the actual amendments (“half-sheets”) will not be released until next Tuesday. The two chambers will debate and pass their amendments on Thursday and then begin the budget conference to develop a compromise amendment package.

Unlike past legislative sessions that were dominated by a single issue like Medicaid Expansion, the two sides will instead wrestle with stretching the resources available to cover a host of items like pay increases for state employees and teachers; transportation funding for roads, transit and rail; election administration; and public education to name but a few.

In putting together their spending plans, the two committees will have access to yet-to-be-released revenue data provided by the governor. Whether or not the data is strong enough to convince either Gov. Northam or the legislature to raise the revenue forecast is unknown. But, the likelihood of upping the forecast is small. Neither a governor nor a General Assembly want to be blamed if budget cuts are subsequently required because the additional revenues failed to materialize.

But, for the sake of argument the two charts below show that both state revenue collections and the civilian labor force increased during calendar year 2019 over 2018 figures. Although the growth in these two areas was modest compared to national data, it does show that the economy is and remains positive.

VML remains hopeful that either the House or the Senate will support the budget amendments sponsored by VML and VACo.

You can review those amendments in the “Budget” section of the Local Government Legislative Day Bulletin.

VML Contact: Neal Menkes, nmenkes@vml.org

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Transportation

Peer-to-peer legislation heads toward acceptable compromise

If you’ve been following our updates regarding peer-to-peer vehicle rental legislation, you know that in the House we supported HB891 (Sickles) and opposed HB1539 (Jones). The former has died and the latter was never heard.

In the Senate, SB735 (Newman) and SB749 (Cosgrove) were moving forward. VML has opposed the former and supported the latter. However, there has been a compromise on these bills and SB735 will now be the bill to support.

The compromise version of SB735 provides for a 6.5 percent tax in 2020 (through July of 2021) if a shared vehicle owner registers no more than 10 vehicles on any combination of platforms, and a 7 percent tax from July 2021 forward. If a shared vehicle owner registers more than 10 vehicles, they will be taxed at 10 percent – the same rate paid by traditional rental car companies.

If the lesser tax rate is used, the allocation of the revenues will be different than the current distribution. Under the current 10.0 percent tax rate, the local portion of the tax rate is four percent. For the 6.5 percent rate in FY 2021, the local portion would equal 2.5 percent. After FY 2021, the 7 percent tax rate is made permanent and the local portion would equal 3 percent.

It is unclear what position the House of Delegates will take after the Senate approves SB735. Stay tuned.

VML Contact: Michelle Gowdy, mgowdy@vml.org

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Omnibus transportation bills diverge

The administration’s transportation packages have begun to diverge in significant ways. The Senate version, SB890 (Saslaw), primarily generates new revenues via a 2-year gas tax increase of 8 cents and indexes the tax to the Consumer Price Index (CPI) in the second year, directs a greater share of transportation revenues towards the Transportation Trust Fund and leaves the vehicle registration fee and the state inspection program untouched. The bill passed the Senate today on a 23 yes, 17 no vote.

HB1414 (Filler-Corn) increases the gas tax 12 cents over three years and indexes the tax to CPI, reduces motor vehicle registration fees (while holding locality registration fees harmless), reduces the frequency of state inspections to every other year, and incorporates a variety of motor vehicle safety proposals (banning cellphones while driving, banning open containers of alcohol in motor vehicles, increases local authority to lower speed limits below 25 mph, and allowing the operation of speed cameras on interstates). This bill passed the House on Feb. 10 on a 56-42 vote.

Both bills establish the Virginia Passenger Rail Authority, simplify how transportation revenue is distributed, direct revenue towards the maintenance of “special structures” (bridges and tunnels that with significant maintenance needs) and increase regional funding for the Northern Virginia Transportation Authority.

Combined, these bills represent a fundamental shift in transportation priorities in Virginia. Increased revenues will allow for greater investments in deferred maintenance, new investments in dedicated passenger rail and transit, additional revenue for SMART SCALE and regional transportation authorities. This legislation will generate new revenues for urban street maintenance and the construction district grant program.

Download a chart comparing the legislation (with differences highlighted) here >

HB1414 and SB890 both propose consolidating transportation funding into 2 primary funds: The Highway Maintenance and Operation Fund (HMOF) and the Transportation Trust Fund. As shown below SB890 directs a greater percentage of revenues towards the Transportation Trust Fund while HB1414 directs more revenues towards maintenance.

Transportation Funding Comparison

  SB890 HB1414
Highway Maintenance and Operations Fund 51% 51.24%
Transportation Trust Fund 49% 48.76%

HB1414 and SB890 differ in how new revenues are directed within the newly consolidated Transportation Trust Fund.

  • HB1414 directs a greater share of funding towards construction programs and the Priority Transportation fund.
  • SB890 proposes increasing the percentage of revenue directed toward the following funds: Mass Transit, Rail, Port, Aviation, Spaceflight and DMV.

Transportation Trust Fund Distribution by Program

Program SB890 HB1414
Construction Program 53% 54.9%
Mass Transit Fund 23% 22.2%
Rail Fund 7.5% 5.72%
Port Fund 2.5% 2.45%
Aviation Fund 1.5% 1.35%
Space Flight Fund 1.0% 0.8%
Priority Transportation Fund 10.5% 12.15%
DMV 1% .43%

VML Contact: Mitchell Smiley, msmiley@vml.org

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Regional transportation bills moving forward

These bills have passed their house of origin and are heading to the other house:

SB452 (Edwards) proposes increasing the motor vehicle fuels tax in regions that do not have a regional authority levying a regional tax and directs revenues to the Highway Construction District Grant Program for the purpose of expending revenues in those construction districts where revenues are raised.

HB729 (Watts) increases regional revenues directed to the Northern Virginia Transportation Authority by increasing the total grantor’s tax levied to $0.20, increasing the transient occupancy tax to 3%, and regional revenues generated by the Highway Use Fee for fuel efficient vehicles proposed in the administration’s transportation legislation (HB1414 and SB890).

HB1541 (McQuinn) creates the Central Virginia Transportation Authority for the purpose of raising regional transportation revenues and directing them to regional construction projects. This bill proposes levying a regional gas tax of 0.7 percent of the sales and use tax and a 2.1 percent wholesale gas tax.

HB1438 (Jones) authorizes the state to issue bonds to support transportation construction projects in the Hampton Roads region.

SB1038 (Lucas) raises revenues for the Hampton Roads Transportation Accountability Commission for transit purposes by increasing regional motor fuels taxes 1.9 percent of the wholesale cost of gasoline and 0.9 percent of the wholesale cost of diesel.

HB1726 (Askew) raises revenues for the Hampton Roads Transportation Accountability Commission for transit purposes. Revenues are raised by levying 2 regional taxes 1) a grantor’s fee of $0.15 per $100 of assessed value of real estate transactions and 2) a 1 percent transient occupancy tax on hotels.

VML contact: Mitchell Smiley, msmiley@vml.org

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Update on motor vehicle safety legislation

SB907 (Lucas), the administration’s motor vehicle safety proposal, has been significantly changed after amendment by the Senate Transportation Committee. This bill allows localities to decrease speed limits below 25 mph, but no lower than 15 mph, in residential and business districts and penalizes passengers not wearing a seat belt as a secondary offense. The Senate Transportation committee eliminated a proposal to ban the use of handheld communication devices, provisions to allow the use of highway speed cameras in highway safety corridors, banned open containers in the passenger compartment of motor vehicles, and required passengers to wear a seat belt and made violations a primary offense. This bill was on the Senate floor today.

SB758 (Marsden) allows for the use of electric personal delivery devices on sidewalks and roads with speed limits of 25mph or less. This legislation was amended in committee to provide greater local authority to regulate these devices to ensure their safe operation. The bill is on the Senate floor.

The remainder of these bills have passed their house of origin:

  • SB935 (Kiggans) prohibits drivers from operating a handheld personal communication device while in school crossing zones and on school property.
  • HB1439 (Jones) passed the House today on a 52 yes, 48 no vote. This legislation is very similar to the motor vehicle safety components of HB1414, the omnibus transportation bill in the House, which was passed on Feb. 10. HB1439 makes it illegal to possess an open container of alcohol in the passenger area of a motor vehicle, prohibits the use of handheld personal communication devices, establishes a photo speed monitoring program in highway safety corridors, allows localities to decrease speed limits below 25 mph in business and residential districts and requires use of seat belts in front and back seats. The provisions on open containers, use of handheld personal communication devices and seat belts have a delayed effective date of July 1, 2021.
  • HB874 (Bourne) Bans the use of handheld personal communication devices (cellphones) while operating a motor vehicle. HB874 passed the full house February 5 by a vote of 72-24 and has been referred to the Senate Transportation Committee. This legislation is the primary bill for cellphone bans while operating a motor vehicle and had multiple similar cellphone bans “rolled into” or incorporated into this bill.

VML Contact: Mitchell Smiley, msmiley@vml.org

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Environment

Update on environmental and agricultural bills

Tree preservation. HB 520 (Bulova) directs the Department of Environmental Quality (DEQ) to convene a stakeholder advisory group for the purpose of studying the planting or preservation of trees as a land cover type and as a stormwater best management practice (BMP). The DEQ is to report the group’s findings by November 1, 2020, and to include a recommendation as to whether the planting or preservation of trees shall be deemed a creditable land cover type or BMP and, if so, how much credit shall be given for its optional use. Stakeholders include development and construction industry

HB 520 passed the House and will be heard in the Senate Committee on Agriculture, Conservation and Natural Resources.

Chemical contaminants in drinking water. Two bills have passed the House and will be heard in the Senate Committee on Education and Health. HB 586 (Guzman) directs the Commissioner of Health to convene a work group to study the occurrence of the PFAS (which is the colloquial term for per- and polyfluoroalkyl substances) in public drinking water and to develop recommendations for specific maximum contaminant levels to be included in regulations of the Board of Health applicable to waterworks.  HB 1257 (Rasoul), directs the State Board of Health to adopt regulations establishing maximum contaminant levels (MCLs) in public drinking water systems for various chemicals. This bill has a delayed effective date of Jan. 1, 2022.

Discharge of chemicals in state waters. HB 1205 (Tran) requires that the Department of Environmental Quality (DEQ) shall provide information pertaining to the discharge of deleterious substances (chemicals, oils, sewage, etc.) into state waters to the Virginia Department of Health (VDH), local newspapers, television and radio stations, official social media accounts and email notification lists, unless the DEQ determines that the discharge will have a de minimis impact. Current law only requires that the DEQ provide this information to the local newspapers. The bill has passed the House and been referred to the Senate Education and Health Committee.

Lawn fertilizer. SB849 (Mason) authorizes local governments to enter into agreements with the Commissioner of the Virginia Department of Agriculture and Consumer Services (VDACS) to provide oversight and data collection assistance related to the requirements of certified lawn fertilizer contractor-applicators. This permissive bill is designed to give a local government the option to work with VDACS to help administer an urban fertilizer program.

SB 849 was passed unanimously by the full Senate and will now be heard by the House.

Food desert initiatives. HB1509 (McQuinn) and SB1073 (McClellan) create the Virginia Food Access Investment Program and Fund (VFAIF) to provide funding for the construction, rehabilitation, equipment upgrades, or expansion of grocery stores, small food retailers, and innovative food retail projects in underserved communities. The VFAIF would provide funding for small food retail projects in underserved communities. The state also would work to increase the number of Supplemental Nutrition Assistance Program retailers who participate in the Virginia Fresh Match Incentive Program, which provides a $1 to $1 match for nutritious fruits and vegetables.

SB 1073 passed the Senate unanimously. HB 1509 is on the House floor.

VML Contact: Mitchell Smiley, msmiley@vml.org

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Elections

General Assembly moving forward (sort of) with redistricting

In an effort to bring the Virginia Redistricting Commission to a November referendum, the Senate has agreed to a full package of redistricting legislation which consists of three parts:

  • A Constitutional amendment, whose language the General Assembly passed during the 2019 session. Before an amendment can be passed along to the voters for final approval, it must pass both bodies in two consecutive sessions.
  • Enabling legislation, which specifies who would serve on the Commission and how those individuals will be selected.
  • Criteria legislation, which lays out the process by which the Commission would draw boundaries, including providing for compactness and contiguity, racial and ethnic fairness, and the protection of racial and language minorities.

The Senate package, SJ18 (Barker), SB203  (Lucas), and SB717  (McClellan), will appear on the Senate floor this afternoon and is expected to pass.

The House, on the other hand, has seen less predictability, with reports indicating more hesitation among House Democrats to commit to the full package. While the House has passed both the enabling (HB758 – VanValkenburg) and criteria (HB1255 – Price) legislation, the Committee on Privileges and Elections has yet to hear an accompanying amendment. The House could still agree to the Senate amendment, allowing the package to move forward. With the session reaching its halfway point tonight, this may quickly become the most viable option for redistricting to make it onto the November ballot.

VML Contact: Jessica Ackerman, jackerman@vml.org

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