City legislative committee hears state bill vetoes and new employer mandates in budget update

Preston Bryant of McGuireWoods told the Roanoke City Legislative Committee on June 1 that the 2026 General Assembly produced a mix of governor vetoes and signed bills with direct implications for local governments. "The 60-day session ended in mid-March," Bryant said, and reconvened work and a special budget session have left several items unresolved.

Bryant highlighted seven vetoes he judged important to local governments, including the proposed cannabis retail framework (vetoed because the governor said implementation timelines were too aggressive) and bills that would limit certain federal immigration enforcement actions near courthouses. He said the governor also vetoed measures that would require local departments of social services to always record child welfare interviews and a bill expanding collective bargaining for local governments. "There were great pains to preserve local zoning and other powers," Bryant said when describing how the cannabis proposal would have affected local taxes and zoning.

Narrowly impactful changes signed into law will require budget planning at the local level. Bryant said the new paid family and medical leave insurance program is mandatory for public and private employers, with Roanoke required to begin processing claims on Dec. 1, 2028. He summarized the program’s basic parameters: a 12-week maximum benefit in a benefit year and coverage equal to about 80% of the average weekly wage. He also noted a paid sick-leave law that provides one hour of paid sick leave for every 30 hours worked and becomes effective July 1, 2027. "Virginia Employment Commission is going to develop and administer these programs and will set contribution rates each October," Bryant said.

Council members pressed for specifics about pending housing legislation. Vice Chair Volison asked how SB74 compares with HB181, an affordable dwelling unit (ADU) bill the city had pursued. Bryant said the House had amended HB181 and attached an enactment clause requiring the Virginia Housing Development Authority to study ADU effectiveness and report back; the city could be added to any ADU list only after further study and future legislation. He offered to set up outreach with the Homebuilders Association to explain the alternatives the association favors.

On budget timing and veto strategy, Bryant reviewed the governor’s line-item veto power and relevant case law, warning councilors that the legislature could attempt to tuck policy items into the budget before sending it to the governor — a contentious play that could provoke further legal or procedural moves. He urged staff to monitor the House and Senate conference timeline, noting both chambers had scheduled return dates in June.

The committee did not take formal action on these updates; members asked staff to track implementation deadlines and to return with further analysis on fiscal impacts for the city’s multi-year budgeting.

Next steps: staff will follow up with a fiscal memorandum breaking out estimated costs and timeline implications for paid family leave and paid sick leave, and the city will consider outreach to the Homebuilders Association about the ADU study process.