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GENERAL ASSEMBLY UPDATE 2.4.20252025 General Assembly Week 4 update Brent McKenzie, Legislative Affairs Director 2 2025 General Assembly Update Today’s update: •Status of Legislative Agenda items •Budget amendments •Legislation of interest Goal of today’s presentation is to provide an update on the General Assembly session. 3 Status of Legislative Agenda items Code Amendments Bill & Patron Status “Good Friday” First Responders Fund HB 2494 Delegate Askew SB 972 Senator Rouse Was not included in the budget ABC Store Larcenies HB 1925 Delegate Ward SB 1297 Senator Craig These bills were stricken from the docket (meaning they are no longer under consideration) with the understanding that ABC will work with localities to reduce the % of police calls Increase the Fire Programs Fund HB 2069 Delegate Garrett Was not included in the budget Property Title Report in Eminent Domain Proceedings HB 1690 Delegate Convirs -Fowler HB1690 passed the House unanimously and now heads to the Senate for a hearing Obstruction of Right-of-Way Violations HB 1966 Delegate Ta t a Failed to pass the Counties, Cities, and Towns Subcommittee #3 by a 5-3 vote Short-Term Rental Delisting HB 1688 Delegate Convirs -Fowler This legislation was struck from the docket at our request. After meeting with representatives from the Commissioners of Revenue, Virginia Realtors and AirBnB , we were unable to overcome some of the deficiencies in how the fine would work operationally. We will work on this in the offseason and potentially come back again next year Zero Waste Awareness Week HJ 446 Delegate Feggans Passed House 57-39 4 Budget Amendments of interest Item Senate House Taxes Tax Rebate $200 individual/$400 joint $200 individual/$400 joint Expanding standard deduction $8,750 individual/$17,500 joint $8,750 individual/$17,500 joint EITC Refundable 20% of federal credit 20% of federal credit Education Support Positions Cap Provides $222.9 million GF to raise the support cap to the prevailing ratio of 27.89 positions per 1,000 $222.5 million in FY 2026 to fully eliminate the cap Teacher Bonus $1,000/state supported teacher and support position, no local match required $1,000/state supported teacher and support position, no local match required Special Education Add-On $52.8 million in FY 2026 $52.8 million in FY 2026 Pre -K/Childca re Public Private Partnership Pilot $25 million/ Establishes about 2,585 slots. State contributes 1/3 of cost; employer contributes at least 1/3, individual 1/3 $25 million/ Establishes about 2,585 slots. State contributes 1/3 of cost; employer contributes at least 1/3, individual 1/3 Virginia Beach Title I Schools Pilot N/A Includes $500,000 in FY 2026 to establish employer cost-sharing early childhood pilot as an incentive for Title I school employees; Establishes about 94 slots; State contributes 1/3 of cost; employer contributes at least 1/3 5 Budget Amendments of interest Housing Grant program to support the efforts of Virginia localities to create local housing trust funds N/A $14 million Grants to localities that adopt favorable zoning policies to increase affordable housing supply N/A $1.5 million Virginia Housing Opportunity Tax Credit N/A $68 million First Time Home Buyers Grant Program N/A $15 million Rental Assistance Program $15 million N/A Collective Bargaining Creates the Public Employee Relations Board N/A $3.3 million FY25 and $9.4 million FY26 to support collective bargaining for public employees Economic Development Sports Tourism Grant Program N/A $8 million 6 Budget Amendments of interest Flooding/Water Stormwater Local Assistance Fund $40 million $50 million Community Flood Prevention Fund $50 million Public Safety Cancer Screenings N/A $200,000 to Virginia Beach for employees who responded to 2012 jet crash Firefighter Protective Equipment $5 million N/A Support Circuit Court Clerk with new Record Sealing Requirements $6.7 million $3.1 million Cultural Affairs Virginia African American Cultural Center N/A $1.5 million Social Services Fund a Multipurpose Sports Court at the Hallow by Samaritan House N/A $200,000 7 Policy Priorities Policy Priorities Bill #Summary Update Affordable Housing HB1701 Housing Opportunity Tax Credit –Increasing the annual threshold and the extending the sunset On for third read 2/3/25 Economic Development HB1616 Workforce Development for Offshore Wind Industry On for third read 2/3/25 Education SB1307 Local authority to call for a referendum on a 1% sales tax for school construction Passed the Senate 27-13 Fiscal Responsibility and Budget Impacts SB1312; HB2164 Reimbursement to localities for 100% disabled veteran's tax deduction Both bills failed in committee Fiscal Responsibility and Budget Impacts HB2488 HB 2488;Local tax authority; nicotine vapor products. Failed to pass Flooding and Stormwater SB1337; HB1949; HJ434 Commonwealth to study state support for local CSRM projects Senate version prefers the Office of Commonwealth Resilience conduct the study; House version prefers JLARC conduct the study Transportation HB2466 Hampton Roads Interstate Highway Corridor created, etc.; sales & use tax On for third read 2/3/25 Transportation SB1097; HB1982 Commonwealth Mass Transit Fund This legislation failed to report out of committee 8 10-1 Legislation 10-1 Legislation Bill & Patron Update 10-1 Charter Amendment Delegate Convirs- Fowler HB1687Charter; City of Virginia Beach Passed the House 69-26-1 (required 2/3 to pass) and now heads to the Senate 10-1 General Law Delegate Askew HB1990Election of certain governing bodies; conversion to single -member districts. Senator Rouse SB814 Election of certain governing bodies; conversion to single -member districts. Passed the House 54-42 and now heads to the Senate Passed the Senate 20-18 and now heads to the House 9 Legislation of Interest Legislation Bill #Update Skill Games SB1323 Legislation would authorize skill games; Language in budget is a copy of language that the Governor vetoed last year; Left in appropriations but language was included in the Senate budget Marijuana Market Place SB970 Legislation includes local taxing (2.5% on top of sales tax) and zoning authority Passed Senate 21-19 EMS Regional Councils SB1294 Would have redirected local EMS funds to regional councils Left in appropriations and wasn’t included in budgets Real property tax; assessment of affordable housing HB2245 Requires local assessors to use the income approach when assessing affordable housing On for third read 2/4/25 License taxes; deduction for out-of- state receipts HB1743 Provides that the license tax deduction for out-of-state receipts in which the taxpayer is liable for a net income tax shall also apply to any type of tax on gross receipts or other tax in lieu of an income tax. On for third read 2/4/25 Has delayed enactment to July 1, 2026 License Plate Readers HB2724 Creates framework for how license plate reader technology can be used by law enforcement On for third read 2/4/25 Zoning; civil penalties for certain repeat violations in Planning District 23 (Hampton Roads) SB992 Enhanced civil penalties for repeat violations involving nonpermitted commercial uses; (i) $200 for the initial violation, (ii) $1,000 for a second violation, and (iii) $1,500 for a third or subsequent violation, not to exceed an aggregate amount of $4,200 On for third read 2/4/25 HB 2036 street takeover HB2036 Expands reckless driving to include street takeovers and exhibition driving On for third read 2/4/25 10 Legislation of Interest Legislation Bill #Update Memorial Bridge HB1793 Captain Matthew "Chevy" Chiaverotti Memorial Bridge; designates bridge over I-264 in VA. Beach. On for third read 2/4/25 Eminent Domain SB1158 Limits ability to do design -build projects Passed Senate Water Permits SB923 Would have invalidated water permits for Hampton Roads Left in appropriations and wasn’t included in budgets Short -Te r m -Rentals HB2383 Requires an accommodations provider to provide detailed tax information to COR Passed House 94-5 Solar Interconnection Grant program HB2113 Assist local governments with the costs associated with the interconnection of solar facilities to the grid On for third read 2/4/25 Energy Siting HB2438 Creates framework for local government requirements for solar energy siting On for third read 2/4/25 Tree Canopy Fund HB2630 Allows localities by ordinance to establish a tree canopy fund to collect, maintain, and distribute fees collected from developers that cannot provide for full tree canopy requirements where the development project is situated On for third read 2/4/25 Faith in Housing HB2153 Grants authority to localities to adopt a variety of strategies intended to encourage and facilitate the development of affordable housing on property owned by religious organizations On for third read 2/4/25 11 Traffic Enforcement Technology 1.HB2041Speed safety cameras; placement and operation •Expands where speed cameras can be placed to include any highway with a speed limit of 45 miles per hour or less that is located in (i) a priority pedestrian corridor as identified by the Department of Transportation in the statewide Pedestrian Safety Action Pla n or (ii) a high -risk pedestrian corridor as designated by the Commissioner of Highways. •Requires excess funds to be sent to the Virginia Highway Safety Improvement Program •Requires two signs be placed 1,000 feet in advance of the camera, with one of those signs a pole mounted speed display sign •Require excess funds to be used for traffic, pedestrian, and bicycle safety or speed management projects •Requires a mailed warning for the first 30 -days of any new speed camera being placed in the community •Requires a locality to create an advisory group, consisting of stakeholders it deems necessary, to identify issues and public concerns regarding such speed safety cameras 2. HB2718Photo speed monitoring devices; school crossing zones •Requires the recorded image produced by a photo speed monitoring device placed in a school crossing zone to include the blinking sign that is activated 3. SB1209Photo speed monitoring devices; private vendors compensated for calibration, civil penalty. •Requires daily manual calibration of the speed cameras •Requires excess funds to be sent to the Virginia Highway Safety Improvement Program 4. SB1233Pedestrian crossing & stop sign violation monitoring systems; violation enforcement •Give localities authority, by ordinance, to operate stop sign and pedestrian crossing camera enforcement 12 Collective Bargaining HB2764Collective bargaining by public employees; exclusive bargaining representatives SB917Collective bargaining by public employees; exclusive bargaining representatives • Repeals the existing prohibition on collective bargaining by public employees •The bill creates the Public Employee Relations Board, which shall determine appropriate bargaining units and provide for certification and decertification elections for exclusive bargaining representatives of state employees and local government employees. •The bill requires public employers and employee organizations that are exclusive bargaining representatives to meet at reasonable times to negotiate in good faith with respect to wages, hours, and other terms and conditions of employment. •The bill repeals a provision that declares that, in any procedure providing for the designation, selection, or authorization of a labor organization to represent employees, the right of an individual employee to vote by secret ballot is a fundamental right that shall be guaranteed from infringement. HB2495Firefighters and emergency medical services providers; collective bargaining •Authorizes firefighters and emergency medical services providers to engage in collective bargaining •The bill establishes the Fire Service Cooperation Board to administer its provisions. •The bill has a delayed effective date of January 1, 2026. 13 Discussion & Questions