eNews – January 14, 2025
Oppose Senate bill mandating ADUs in all single-family residential zoning districts, Are meals taxes going to get 86ed?...and more!
Tuesday, January 14, 2025/Categories: eNews
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In this issue:
Action Alert
Finance
Zoning
Charters
Education
Health & Human Resources
Transportation
Natural Resources
Opportunities
Action Alert
OPPOSE: SB932 mandates accessory dwelling units in all single-family residential zoning districts; Bill is on the Senate floor!
Yesterday morning, SB932 (Salim) passed the Senate Local Government Committee on a 6-5 vote with 2 abstentions. VML will ask Senators to OPPOSE this proposed legislation on the Senate Floor because it requires local governments to allow accessory dwelling units (ADUs) in all single-family residential zoning districts.
A locality CANNOT require anything that is not included in the list below. This means that items such as parking, setbacks greater than those of the primary dwelling, and affinity between the occupants CANNOT be required by the locality.
Localities are only able to require:
- No more than one ADU per lot.
- Lease term of 30 days or longer.
- Replacement of parking if construction of ADU eliminates parking.
- Floor area restrictions as outlines.
- Owner occupancy of one of the two residential structures
- Height restrictions
- Compliance with the building code and only if detached – water, sewer, emergency access, flood zone and storm water requirements.
Action Requested:
Contact your Senator and ask them to vote NO on this legislation. The list of senators with links to their contact information is available here >.
Talking Points:
- This is a mandate on local governments; each locality should be able to determine how they want their locality to look.
- Many neighborhoods and schools do not have the capacity for additional traffic, students, water/sewer, etc.
The section will not apply if your ordinance was adopted prior to January 1, 2026 (this is a change from the original bill) if ADUs are not subject to a special use permit AND a locality can adopt an ordinance prior to July 1, 2026 if it “substantially” complies with the requirements of this section.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Finance
Are meals taxes on the chopping block this session?
Without fail, every year when the General Assembly reassembles in January an issue emerges that very few saw coming. This year, it seems to be meals taxes.
Any proposals to limit local government’s ability to generate revenues from this source have the potential to take a bite out of our finances but more importantly constrain the ability of localities to serve their constituents.
For context, meals taxes generate significant revenue for counties, cities, and towns. According to data compiled by the Auditor of Public Accounts, localities collected $876 million from meals taxes in fiscal year 2023. But the reliance upon meals taxes varies considerably by form of local government. On average, towns bring in 41% of their non-property tax revenues from the meals tax, 26% in cities, and 9% in counties.
HB2004 (McNamara), which has been assigned to House Finance, proposes to cap the amount of revenue local governments can generate from the meals tax on food and beverages. Effective January 1, 2028, local meals taxes could not exceed 6%. And unless approved by voter referendum, the meals tax rate would be limited to 4%.
Based on a sample of 31 localities, the impact on local revenues could be significant. It is estimated that capping the meals tax rate at 4% would result in a loss of $75 million to cities, counties, and towns each year. That assumes voters reject keeping the rate at 6%.
The proposal is more nettlesome in towns where the meals tax rate appears to be limited to the combined rate charged by county and town. For example, if County A has a meals tax of 2%, then Town B’s meals tax cannot exceed 2% unless approved by the voters, in which case the town’s meals tax rate could be 4%.
A separate bill, SB1307 (McPike), penalizes counties and cities by prohibiting them from imposing a one percent local option sales and use tax to generate revenue for capital projects related to school construction and renovation in their communities. The bill was referred to the Senate Finance & Appropriations Committee.
The bill also includes a provision that restricts the 1% local option sales tax for school construction and renovation projects to localities whose combined state and local sales taxes are less than 8%.
At a time when localities need a menu of options to address their fiscal needs, some of these proposals are clearly problematic.
VML Contact: Joe Flores, jflores@vml.org
Zoning
Bill proposes changes to Board of Zoning Appeals
SB992 (Williams Graves) Civil penalties for certain repeat zoning violations in Planning District 23; appeals. *Please note that changes to Board of Zoning Appeals in this bill apply to all localities. Provides an enhanced level of civil penalties in Planning District 23 (Hampton Roads) for repeat violations involving nonpermitted commercial uses as defined in the bill. The bill also clarifies (i) that when a board of zoning appeals hears appeals from the decision of an administrative officer and alters the statutorily required order of evidence, it is a reversible error and (ii) that the required statement of a right to appeal an administrative officer's decision must be sent to the aggrieved person by certified mail with proof of delivery.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Charters
Charter bills that passed out of committee on Monday
The following charter or locality specific bills passed out of Senate Local Government on Monday:
- SB836 (Diggs) Poquoson, City of; amending charter, powers of city council.
- SB872 (Lucas) Charter; City of Portsmouth.
- SB873 (Hackworth) Richlands, Town of; amending charter, relates to ordinance.
- SB935 (Craig) Chesapeake, City of; amending charter dates of elections, etc.
- SB987 (Williams Graves) Charter; City of Norfolk.
- SB1011 (Salim) Affordable dwelling unit program; City of Falls Church.
- SB1150 (Obenshain) Charter; Town of Shenandoah.
- SB1176 (Suetterlein) Charter; City of Roanoke.
- SB1206 (Mulchi) Charter; City of Danville.
VML Contact: Michelle Gowdy, mgowdy@vml.org
Education
Status updates on education legislation of importance to local governments
HB1831 (Simonds) would remove the funding cap placed on support positions, require the DOE to make formula changes to the SOQ, include salaries for instructional and support positions, and include facilities and transportation support costs. This includes various recommendations from the 2023 JLARC report regarding the SOQ. VML supported this bill in the subcommittee and will continue to do so.
Status: HB1831 passed out of the House K-12 Education Subcommittee this morning on a vote of 5-3 and was referred to the House Appropriations Committee.
HB2032 (Reaser) would require state-funded add-ons to support English language learner students. It would also require local funds to be obligated for add-ons determined by the local ability to pay. Lastly, the bill would require the DOE to develop and implement a data collection process related to English language learners.
Status: HB2032 has been docketed for the House K-12 Education Subcommittee and will be heard at 4:00 PM on Tuesday, January 14, 2025.
VML Contact: Josette Bulova, jbulova@vml.org
Health & Human Resources
Companion CSA language clean-up bills introduced
Following a year-long study by the Virginia Commission on Youth, bills have been introduced in the House and Senate that are intended to update and clean up language under the Children’s Services Act (CSA).
These bills are HB2282 (Coyner) (awaiting Committee referral) and SB801 (Favola) (assigned to Senate Rehabilitation and Social Services).
The companion bills make several updates and technical changes to statutory language regarding the CSA state pool of funds for the provision of public or private non-residential or residential services for youth and families, including:
- Removing the requirement that the Office of Children's Services consult with private special education services providers in developing the standard reporting template for tuition rates.
- Removing historical language establishing that the purpose of the state pool of funds is to consolidate categorical agency funding and to establish community responsibility for the provision of services.
- Removing language referencing the funding sources and placement authority.
- Modifying the target population served by the state pool of funds by (i) removing references to Department of Education programs that pre-dated CSA’s establishment, and (ii) adding children and youth who are determined to be a child in need of services, as such term is defined in relevant law.
- Removing the requirement that the financial and legal responsibility for certain special education services remains with the placing jurisdiction, unless the placing jurisdiction has transitioned all appropriate services.
- Requiring that the uniform assessment instrument used to determine eligibility for funding through the state pool of funds be approved by the CSA State Executive Council.
- Modifying the eligibility criteria for funding through the state pool of funds by adding language that (i) specifies that the child or youth's emotional or behavioral problems have resulted in the child or youth, or place the child or youth at imminent risk of, entering purchased residential care and (ii) includes the determination by a court or by a local family assessment and planning team (FAPT) that the child or youth is a child in need of services, as such term is defined in relevant law.
These bills are not intended to change financial obligations by localities or the state. VML is monitoring the legislation.
VML Contact: Janet Areson, jareson@vml.org
Transportation
Photo speed enforcement bills to watch
HB2041 (Seibold) expands local authority to place speed safety cameras by ordinance outside of the current statutorily authorized locations (school zones, work zones, or high risk pedestrian intersections) on any highway in the locality with a speed limit of 45 miles per hour or less that is recognized as a priority pedestrian corridor in the VDOT Pedestrian Safety Action Plan or designated as a high-risk pedestrian corridor by the Commissioner of the Highways. Restricts any penalties collected by speed safety cameras to the operating costs of speed safety cameras with any excess revenues to be deposited in the Virginia Highway Safety Improvement Program and removing funds generated from photo enforcement devices from local control. Redefines photo speed monitoring devices as speed safety cameras in the Code of Virginia.
SB852 (New Craig) allows a retired sworn law enforcement officer to certify speed violations recorded by photo-speed devices.
SB1209 (Obenshain) requires a vendor that provides a photo speed monitoring device to provide to a person who has received a summons by mail of a speed violation from a photo-speed enforcement can request documentation for speed calibration from the vendor and the vendor is required to reply within 10 days of the request being made and any violation of this proposal will be subject to a $1,000 fine per violation.
VML Contact: Mitchell Smiley, msmiley@vml.org
Towing bill threatens local authority to regulate fees
SB1332 (Marsden) removes local authority to regulate towing fees for trespass towing for vehicles with a gross weight of less than 10,000 pounds or storage fees. The State Corporation Commission under the bill would be responsible for the regulation of towing fees statewide and adjustments of towing fees annually based on the Transportation Consumer Price Index.
The bill was referred to Commerce and Labor on Monday.
VML Contact: Mitchell Smiley, msmiley@vml.org
Natural Resources
Bills affecting erosion/sediment control and surface water withdrawal
HB2132 (Milde) limits the amount of a security a locality can require for sediment basins in early grading plans to 25% when a security is in the form of a letter of credit or cash for a land-disturbing activity permit under the erosion and sediment control laws where the locality issues permits for grading, building or other land-disturbing activities. Requires a locality to provide a credit for sediment basins that are included in early grading plans when determining the amount of the bond necessary under a final site plan when a stormwater management facility is to be built on top of the sediment basin.
SB923 (Stuart) prohibits the issuance of permits for surface water withdrawals if 5% or more of the nonconsumptive volume of the water withdrawn will be returned to a different river basin. Lawfully permitted withdrawals as of July 1, 2025 are exempt from this bill.
VML Contact: Mitchell Smiley, msmiley@vml.org
Opportunities
VDEM/VCU offering emergency preparedness classes for locally elected and appointed officials
The Virginia Department of Emergency Management (VDEM) has partnered with the Wilder School of Government and Public Affairs at Virginia Commonwealth University to offer free emergency preparedness education for locally elected and appointed officials. These courses are taught by full time faculty in the Homeland Security/Emergency Preparedness Department at VCU. All courses are one day, face-to-face, with coffee and lunch provided. Courses are offered at a variety of venues and dates during the first part of 2025.
Registration is available here >.
VCU Contact: Will Pelfrey, wvpelfrey@vcu.edu