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Commission on Local Government approves draft regulations to implement SB645 on fiscally distressed localities
Summary
The Commission on Local Government voted unanimously July 18 to approve draft regulations (1VAC50-30) implementing 2024 legislation SB645 on fiscally distressed localities; staff noted emergency regulations are already in effect and the proposed-stage text is identical. Staff also reported awarding an RFP to eight firms for fiscal turnaround services.
The Commission on Local Government voted unanimously on July 18 to approve draft regulations (1VAC50-30) to implement 2024 legislation SB645 governing state intervention in fiscally distressed localities.
Commissioner Robert Lauterberg, chair of the Commission on Local Government, called the meeting to order at 12:39 p.m. Chase Sawyer, Policy Manager for the Department of Housing and Community Development (DHCD), told commissioners that emergency regulations are currently in effect and that the text submitted for the Proposed Stage is identical to the emergency regulations now in force. After discussion of the regulatory steps and opportunities for public comment, Commissioner Edwin Rosado moved to approve the draft regulations; Commissioner Terry Payne seconded the motion, which passed on a unanimous voice vote (YEAS: Lauterberg, Payne, Rosado; NAYS: None).
The action follows 2024 legislation (SB645) that authorized the regulatory framework. Commissioners discussed procedural details of the regulatory process and public notice opportunities; no public commenters spoke during the meeting’s public comment period.
At the meeting staff also provided related updates. Chase Sawyer introduced Maggie Beal as the new Interim Director of DHCD; Ms. Beal offered a brief background on her prior roles. Trisha Lindsey, Policy and Legislative Services Director, reported that an RFP for local fiscal turnaround specialists had been issued and that eight firms were awarded contracts with the Commonwealth to provide state intervention and emergency fiscal management services.
Commissioners also discussed the logistics of holding regular Commission meetings in different parts of the Commonwealth and conducting site visits to explore topics such as data centers, past instances of fiscal distress, and water and wastewater operations. Commissioner Edwin Rosado cautioned that travel costs and the possible negative perception for a locality visited to assess fiscal distress should be considered.
The Commission took formal action to approve the draft regulations during the meeting; the body did not receive any public comments on the item. The meeting adjourned at 1:24 p.m.
