The 2012 session of the Virginia General Assembly convened January 11.  During the course of the 60-day session, over 2,500 measures will be introduced and considered for passage.  Of the thousands of bills introduced and referred to committee, the Prince William Chamber is actively monitoring more than 100 individual pieces of legislation for their potential impact on the interests of the local business community.  Of those, the Chamber has actively lobbied for the passage or defeat of several bills, taking active positions, educating key members and staff, testifying in committees and submitting official statements for the record.  At the February 14 crossover deadline (the half-way point in session at which time all bills are either transmitted to the opposite chamber or allowed to fail,) the Chamber has already amassed several successes defending industry against harmful proposals and helping to ensure the continued consideration and advancement of proposals that will have a positive impact on the Commonwealth’s business climate.   At the same time, much remains at stake with the 2012-2014 state budget yet to be addressed by the legislature.

 

The focus of the Chamber’s advocacy program has been built around its core interests of effective government, transportation, education and workforce, healthcare, and energy and the environment.  The following report provides a detailed summary of legislation the Chamber is currently monitoring and has acted upon to date.  Chamber priority issues on tax reform and transportation continue to see movement as we enter the second half of the legislative session:

 

• Seek reform and/ eliminate the BPOL tax:  As currently amended HB 10, patroned by Del. Mark Cole, prohibits a locality from increasing its local license (BPOL) fees or taxes above its 2011 rates until 2015. It also expands upon legislation passed last session by authorizing a locality to impose the BPOL tax on (i) gross receipts or (ii) theVirginia taxable income of a corporation, the net income of a sole proprietorship, and the net income of a pass-through entity.  This bill is a step in the right direction for overall BPOL reform. The bill passed the House 88-12 and is awaiting action in the Senate.

 

• Seek reform and/or eliminate the Machinery & Tools Tax: SB 549, patroned by Sen. Frank Wagoner, establishes the Machinery and Tools Investment Grant Fund that will provide an incentive for manufacturers to located or expand inVirginia. This bill is a step in the right direction to reduce this burdensome tax and makingVirginia more competitive for manufacturing.  The bill passed the Senate 28-12 and is awaiting action in the House.

 

• Eliminate the differential real estate taxing authority for Northern Virginia: One of the last remaining vestiges of the 2007 HB 3202, localities inNorthern Virginia currently have the option to asses a special real property tax on commercial and industrial property of 25 cents ($0.25) per $100 of assessed value. In 2009, the rate was capped at 12.5 cents per $100.  HB1068, patroned by Del. Tim Hugo, originally sought to make permanent the 12.5 cent cap which is set to expire in 2013 (and localities would have the ability to charge up to 25 cents).  Rather than making permanent, an amendment made in committee altered the bill to extend the sunset for another 5 years.  The bill passed out of the House 98-0 and is awaiting action in the Senate.

 

• Secure significant, new, dedicated, reliable transportation revenues: The House (HB 1248) and Senate (SB 639) omnibus transportation funding packages both considerably alter the Governor’s transportation funding proposal.  The House bill maintains much of the funding streams proposed by the Governor but alters the percentage of general fund growth to transportation and eliminates and independent tolling authority.  The Senate bill, however, proposes to index the gas tax while eliminating every other revenue stream proposed in the Governor’s package.  Much work remains but the outlook for serious, new money for transportation remains bleak.

 

Effective Government

HB 5 Eminent Domain Constitutional amendment

Patron: Del. Robert Bell (R-Charlottesville)

Summary: Provides for a referendum at theNovember 6, 2012, election to approve or reject an amendment eliminating the General Assembly’s authority to define a public use for which private property may be taken or damaged and providing that no private property shall be taken or damaged for a public use without just compensation to the property owner and that only so much of the property as is necessary to achieve the public use is taken or damaged.  The bill is identical to SB 240.

PW Chamber position: Oppose

Status: Passed the House

HB 10 BPOL tax

Patron: Del. Mark Cole (R-Spotsylvania)

Summary: Prohibits a locality from increasing its local license (BPOL) fees or taxes above the rates of its BPOL fees and taxes imposed for the 2011 license year until 2015. The bill also authorizes a locality to impose the BPOL tax on (i) gross receipts or (ii) theVirginia taxable income of a corporation, the net income of a sole proprietorship, and the net income of a pass-through entity.

PW Chamber position: Support

Status: Passed the House

 

HB 31 Real property tax valuation

Patron: Del. Robert Marshall (R-Manassas)

Summary: Prohibits attributing any value to any unlawful use of real property when determining fair market value.

PW Chamber position: Oppose

Status: Left in committee

HB 33 Public procurement; state agency agreements with labor organizations.

Patron: Del. Barbara Comstock (R-McLean)

Summary: Requires state agencies to ensure any public works project contract does not require or prohibit agreements with labor organizations.

PW Chamber position: Support

Status: Passed the House

HB 80 Real property tax assessment of wetlands

Patron: Del. Robert Orrock (R-Caroline)

Summary: Requires the local assessing official to separately assess the fair market value of wetlands on real property, if requested by the property owner.

PW Chamber position: Support

Status: Passed the House

HB 81 Real property tax

Patron:Del.Robert Orrock (R-Thornburg)

Summary: Provides that prior use of any property shall not be considered in determining its current use for land use valuation purposes.

PW Chamber position: Oppose

Status: Passed the House

 

HB 92 Urban development areas

Patron:Del.Robert Marshall (R-Manassas)

Summary: Makes incorporation of urban development areas optional rather than mandatory. Any locality that has previously adopted urban development areas may, and upon voter petition shall, reconsider such action.

PW Chamber position: Oppose

Status: Left in committee

HB 111 Small business job creation tax credit

Patron: Del. Richard Bell (R-Staunton)

Summary: Creates an individual and corporate income tax credit beginningJanuary 1, 2012 (and endingJanuary 1, 2015), for small businesses creating new full-time jobs in the Commonwealth.

02/06/12House: Continued to 2013 in Finance

PW Chamber position: Support

Status: Passed by in Committee

HB 112 Zero-based budgeting principles

Patron: Del. Richard Bell (R-Staunton)

Summary: Requires, beginning in the 2014-2016 biennium, “The Executive Budget,” and all “Executive Budgets” shall be prepared and formulated using zero-based budgeting principles.

PW Chamber position: Support

Status:  Failed to report from subcommittee

 

HB 117 Interest on refunds and delinquent taxes

Patron: Del. Tony Wilt (R-Harrisonburg)

Summary: Authorizes localities not to pay interest on the refund of local taxes when the refund is due to errors made by the taxpayer. This bill has technical amendments.

PW Chamber position: Oppose

Status: Passed the House

 

HB 124 Plastic bags

Patron: Del. Joe Morrissey (D-Richmond)

Summary: Imposes a tax of 20 cents ($0.20) on plastic bags used by purchasers to carry tangible personal property purchased in grocery stores, convenience stores, or drug stores.

PW Chamber position: Oppose

Status: Left in committee

 

HB 149 Lower Income tax rates for certain businesses

Patron: Del. Margaret Ransone (R-Kinsale)

Summary: Reduces the corporate income tax rate from six percent to three percent for the first three years after a business located outside Virginia opens a satellite office in a Virginia locality with a population of 200,000 or fewer or after a business located in a Virginia locality with a population exceeding 200,000 opens a satellite office or operation in a Virginia locality with a population of 200,000 or fewer, for taxable years beginning on or after January 1, 2012.

PW Chamber position: Oppose

Status: Continued to 2013 by committee

 

HB 169 Criteria for designation of Enterprise zones

Patron: Del. John Cosgrove (R-Chesapeake)

Summary: Provides that an area for which state enterprise zone designation is sought would be required to meet one of the following: (i) have 25 percent or more of the population with incomes below 80 percent of the median income of the jurisdiction; (ii) have an unemployment rate 1.5 times the state average; or (iii) have a demonstrated floor area vacancy rate of industrial and/or commercial properties of 20 percent or more. The criteria would replace the current criteria that considers locality-wide need as demonstrated by: (i) the average unemployment rate for the locality over the most recent three-year period; (ii) the average median adjusted gross income for the locality over the most recent three-year period; and (iii) the average percentage of public school students within the locality receiving free or reduced price lunches over the most recent three-year period.

PW Chamber position: Oppose

Status: Laid on table by subcommittee

HB 216 Datacenter Retail Sales and Use Tax Exemption

Patron: Del. Barbara Comstock (R-McLean)

Summary: Expands the existing datacenter sales and use tax exemption to tenants of the centers, and by including jobs created not only by the data center operator but also by the tenants of the data center in collectively meeting the level of new jobs required for eligibility for the exemption.

PW Chamber position: Support

Status: Passed the House

 

HB 262 Membership of Commonwealth Transportation Board

Patron: Del. Chris Peace (R-Mechanicsville)

Summary: Changes the reference to “standard metropolitan statistical areas” to “metropolitan planning areas with populations greater than 200,000.”

PW Chamber position: Support

Status: Continued to 2013 by Senate committee

 

HB 290 Interest on refunds and delinquent taxes

Patron: Del. Beverly Sherwood (R-Winchester)

Summary: Authorizes localities not to pay interest on the refund of local taxes when the refund is due to errors made by the taxpayer.

PW Chamber position: Oppose

Status: Stricken from docket by committee

 

HB 326 Proffer amendments and notices

Patron: Del. James Massie (R-Richmond)

Summary: Allows a landowner subject to proffered conditions to apply for amendments to such conditions after providing notice to local governing body.

PW Chamber position: Support

Status: Passed the House

 

HB 335 Individual and corporate income taxes; subtraction for investment in small businesses

Patron: Del.Ron Villanueva (R-VirginiaBeach)

Summary:
 Grants an individual and corporate income tax deduction for any income taxed (i) as a gain for federal income tax purposes attributable to an investment in a small business held for a period of at least five years or (ii) as investment services partnership interest income for federal income tax purposes attributable to an investment in a small business.

PW Chamber position: Support

Status: Stricken from committee docket

 

HB 403 Governor’s DevelopmentOpportunity Fund

Chief patron: Del. Luke Torian (D-Dumfries)

Summary: Adds the requirement that at least 30 percent of the jobs created must be filled byVirginia residents to the criteria for making grants or loans from the Governor’s Development Opportunity Fund.

PW Chamber position: Oppose

Status: Stricken from docket by committee

HB 405 Planning commissions appointments

Patron: Del. Luke Torian (D-Dumfries)

Summary:  Provides that no member shall be appointed to a planning commission who holds a pecuniary interest or professional position with any organization to which the outcome of local planning and zoning policies is integral to the organization’s mission.

PW Chamber position: Support

Status: Left in committee

 

HB 406 Local Incentives for defense contractors

Patron: Del. Luke Torian (D-Dumfries)

Summary: Authorizes a local government to provide local incentives and regulatory flexibility to defense contractors located within a defense production and support services zone established by the local government. The bill defines defense contractors as businesses primarily engaged in providing services in support of national defense.

PW Chamber position: Support

Status: Passed the House

 

HB 419 Estate tax

Patron: Del. Vivian Watts (D-Annandale)

Summary: Reinstates the estate tax for persons dying on or after July 1, 2012. No estate tax will be imposed on a gross estate if the majority of the assets of the estate is an interest in a closely held business or a working farm. The revenues from the estate tax would first be used for funding staffing standards in nursing homes required to be established under the bill, which staffing standards would require a minimum period of time of direct care services to each resident per 24-hour period.

PW Chamber position: Oppose

Status: Left in committee

 

HB 422 Transportation funding and administration

Patron: Del. Vivian Watts (D-Annandale)

Summary: Provides additional funding for transportation by (i) imposing a motor fuels sales tax rate of four percent, phased in over four years, for highway maintenance; (ii) increasing the state sales tax in Northern Virginia by 0.5 percent for transportation projects in Northern Virginia; and (iii) adding an additional recordation tax in Northern Virginia at a rate of $0.40 per $100 valuation.

PW Chamber position: Support

Status: Left in committee

 

HB 460 Corporate Income Tax

Patron: Del. Kathy Byron (R-Lynchburg)

Summary:  Repeals the additional taxes, penalties, and interests that would have been assessed on any manufacturer that elected the single sales factor apportionment for income and that did not maintain certain employment levels.

PW Chamber position: Support

Status: Passed the House

 

HB 512 Machinery and Tools Tax

Patron: Del. Harry Purkey (R-VirginiaBeach)

Summary: Classifies as intangible personal property, and therefore subject solely to state taxation, machinery and tools purchased on or after July 1, 2012, that have not been in service for more than three years.

PW Chamber position: Support

Status: Defeated in the House

 

HB 514 Tax credits for costs to comply with excessive state regulations

Patron: Del. Harry Purkey (R-VirginiaBeach)

Summary:  Establishes a tax credit beginning January 1, 2012, for the direct costs of a business attributable to its location in the Commonwealth to comply with excessive state regulations. The bill defines direct costs to include lost profits from business in the Commonwealth.

PW Chamber position: Support

Status: Continued to 2013

 

HB 519 Conversion and termination of corporations and other business

Patron: Del. Harry Purkey (R-VirginiaBeach)

Summary: Makes provisions that set out how amended and restated articles are to be an attachment to a plan of domestication uniform across the laws regarding corporations, limited liability companies, business trusts, and limited partnerships. 01/24/12 Senate: Referred to Committee on Commerce and Labor
PW Chamber position: Support

Status: Passed the Senate

HB 585 Small Business Investment Income Tax Credit

Patron: Del. Donald Merricks (R-Martinsville)

Summary: Creates a tax credit equal to 10 percent of a qualified investment in a small business for an eligible investor.

PW Chamber position: Support

Status: Passed the House

HB 597  Definitions of lost profits and access

Patron: Del. Anne Crockett-Stark (R-Wytheville)

Summary:  Provides definitions for the terms “lost profits” and “lost access” and how to determine the amount of just compensation, which includes lost profits and lost access resulting from the taking, that must be paid for property taken by eminent domain.

PW Chamber position: Oppose

Status: Rolled into HB 1035

 

HB 714 Major business facility job tax credit

Patron: Del. Terry Kilgore (R-Gate City)

Summary:  Extends the time during which the major business facility job tax credit may be taken over a two-year period from December 31, 2012, to December 31, 2014.

PW Chamber position: Support

Status: Reported from Senate committee

 

HB 720 Worker retraining tax credit

Patron: Del. David Yancey (R-Newport News)

Summary: Increases the worker retraining tax credit for worker retraining courses taken by employees at private schools from a maximum of $100 per year per employee to $250 per year per employee or $500 per year per employee if the worker retraining includes retraining in a STEM discipline, including but not limited to a health care related discipline.

PW Chamber position: Support

Status: Continued to 2013 by committee

HB 729 Urban development areas

Patron: Del. Mark Dudenhefer (R-Stafford)

Summary: Increases population thresholds for determining applicability of urban development area (UDA) requirements from 130,000 persons to 200,000 persons. The bill also specifies that UDAs need only accommodate the projected growth beyond what may be developed by right and changes a 10-year growth mandate to five years.

PW Chamber position: Oppose

Status: Left in committee

HB 825 Application of foreign law

Patron: Del. Robert Marshall (R-Manassas)

Summary: Prohibits anyVirginia court or administrative agency from applying the law of any jurisdiction outside of theUnited States and its territories unless the application is required by the United States Constitution, the Constitution of Virginia, or any federal or state law.

PW Chamber position: Oppose

Status: Continued to 2013 by committee

 

HB 841 Major business facility job credits & enterprise zone job creation grants

Patron: James

Summary: Allows a business creating permanent, full-time positions to be eligible for both the major business facility job tax credit and enterprise zone job creation grants. However, the bill prohibits both the tax credit and the grant being allowed for the same job created.

PW Chamber position: Supports

Status: Passed the House

HB 910 Cash proffers

Patron: Del. Randy Minchew (R-Loudoun)

Summary: Expands existing provisions that allow certain alternative uses of cash proffers to provide that such cash proffers may also be used for an alternative purpose if the functional purpose for which the cash payment was made no longer exists.

PW Chamber position: Support

Status: Passed the House

 

HB 1013 Capital Gains Subtraction from Income tax

Patron: Del. Barbara Comstock (R-McLean)

Summary: Extends the subtraction from individual and corporate income tax for capital gains from investments in qualified businesses from June 30, 2013, to June 30, 2015.

PW Chamber position: Support

Status: Passed in Senate committee

HB 1015 Bid match preference for State businesses.

Patron: Del. Barbara Comstock (R-McLean)

Summary: Provides, for contracts not expected to exceed $5 million, a bid match preference forVirginia business. Under the bill, aVirginia business has an opportunity to match the lowest bid of an out-of-state bidder if the bid of aVirginia business is within five percent or $10,000, whichever is less, of the lowest bid of an out-of-state bidder. The bill also provides that to be deemed a resident of Virginia, a Virginia person, firm, or corporation must have paid unemployment taxes or income taxes in Virginia in addition to being organized pursuant to Virginia law or maintaining a principal place of business within Virginia.

PW Chamber position: Oppose

Status: Left in committee

 

HB 1024 Governor’s DevelopmentOpportunity Fund

Patron: Del. David Englin (D-Alexandria)

Summary: Specifies that at least 50 percent of the grants or loans to political subdivisions of the Commonwealth shall be used for economic development projects that involve the creation of at least 1,000 new jobs per project.

PW Chamber position: Oppose

Status: Left in committee

 

HB 1029 Removes requirement that certain planning commissioners own property

Patron: Del. David Englin (D-Alexandria)

Summary: Removes the requirement that at least one-half of the members of a local planning commission be owners of real property.

PW Chamber position: Oppose

Status: Failed to pass House

 

HB 1035 Definition of lost access and profits

Chief patron: Del. Johnny Joannou (D-Portsmouth)

Summary: Provides definitions for the terms “lost profits” and “lost access” and how to determine the amount of just compensation, which includes lost profits and lost access resulting from the taking, that must be paid for property taken by eminent domain.

PW Chamber position: Oppose

Status: Passed the House

HB 1068 Commercial Real estate tax in Northern Virginia

Patron: Del. Tim Hugo (R-Clifton)

Summary: Extends the sunset date from June 30, 2013, to June 30, 2018 on the reduction in the tax rate for the special real property tax on commercial and industrial property in the localities encompassed by the Northern Virginia Transportation Authority from 25 cents ($0.25) per $100 of assessed value to 12.5 cents ($0.125) per $100 of assessed value.

PW Chamber position: Support

Status: Passed the House

 

HB 1234Virginia Economic Development Partnership Authority

Patron: Del. Terry Kilgore (R-GateCity)

Summary: Provides that the Governor and not the Authority board of directors shall appoint the executive director of the Authority. The bill further provides that the executive director shall serve at the pleasure of the Governor.

PW Chamber position: Oppose

Status: Passed the House

 

HB 1291 Governor’s reorganization of executive branch of state government

Patron: Del. Todd Gilbert (R-Woodstock)

Summary: Reorganizes the executive branch of state government and certain local transportation entities.

PW Chamber position: Support

Status: Passed the House

 

HB 1295 Elimination of State mandates

Patron: Del. Kathy Byron (R-Lynchburg)

Summary: Eliminates several statewide mandates on local and regional government entities relating to education and land use.

PW Chamber position: Support

Status: Passed the House

HJ 3 Eminent Domain Constitutional amendment

Patron: Del. Robert Bell (R-Charlottesville)

Summary: Revises the prohibition on the enactment by the General Assembly of laws whereby private property may be taken or damaged. An existing provision authorizing the General Assembly to define what constitutes a public use is removed. The proposed amendment provides that private property can be taken or damaged only for a public use, only with just compensation to the owner, and only so much taken as is necessary for the public use. Just compensation must equal or exceed the value of the property taken, lost profits and lost access, and damages to the residue caused by the taking. A public service company, public service corporation, or railroad exercises the power of eminent domain for public use when such exercise is for the authorized provision of utility, common carrier, or railroad services. In all other cases, a taking or damaging of private property is not for public use if the primary use is for private gain, private benefit, private enterprise, increasing jobs, increasing tax revenue, or economic development, except for the elimination of a public nuisance existing on the property. The condemner bears the burden of proving that the use is public, without a presumption that it is.

PW Chamber position: Oppose

Status: Passed the House

HJ 52 Study reformingVirginia’s state and local tax structure

Patron: Del. Mark Cole (R-Spotsylvania)

Summary: Establishes a joint subcommittee to study reformingVirginia’s tax structure, including the feasibility of adopting a flat tax or a fair tax.

PW Chamber position: Support

Status: Left in committee

 

HJ 63 Composite Index Local Ability to Pay

Patron: Del. Jennifer McClellan (D-Richmond)

Summary: Directs the Joint Legislative Audit and Review Commission to study the efficiency and effectiveness of the Composite Index of Local Ability to Pay. In conducting its study, the Commission shall (i) review current statutory, constitutional, and budgetary provisions governing the calculation of Standards of Quality costs and funding; (ii) examine the components of the Composite Index and how they interact; (iii) evaluate other states’ public school funding formulas; (iv) hear local concerns and seek input from various Virginia and national experts, as available; and (v) evaluate the need to adjust the current basic school aid formula.

PW Chamber position: Oppose

Status: Left in committee

 

HJ 85 Study multiplier effects of current economic development programs

Patron: Del. Harry Purkey (R-Virginia Beach)

Summary: Directs the Joint Legislative Audit and Review Commission to study and determine the multiplier effects of various types of income tax credits, public-private partnerships, and other public-private investment programs.

PW Chamber position: Support

Status: Passed the House

 

SB 54 Unemployment benefits minimum earnings requirement

Patron: Sen. John Watkins (R-Midlothian)

Summary: Postpones the scheduled increase, from $2,700 to $3,000, in the minimum amount of wages an employee must have earned in the two highest earnings quarters of his base period in order to be eligible for unemployment benefits.

PW Chamber position: Support

Status: Passed the Senate

SB 61 Lower corporate tax rate for certain businesses.

Patron: Sen. William Stanley (R-Moneta)

Summary: Reduces the corporate income tax rate from six percent to three percent for the first three years after a business located outside Virginia opens a satellite office in a Virginia locality with a population of 200,000 or fewer or after a business located in a Virginia locality with a population exceeding 200,000 opens a satellite office or operation in a Virginia locality with a population of 200,000 or fewer, for taxable years beginning on or after January 1, 2012.

PW Chamber position: Oppose

Status: Continued to 2013 by committee

 

SB 68 Industrial building rehabilitation tax credit

Patron: Sen. William Stanley (R-Moneta)

Summary: Creates a tax credit, not to exceed $100,000, for businesses that rehabilitate or retrofit older industrial buildings in which a new business is located for taxable years beginning on and after January 1, 2013.

PW Chamber position: Support

Status: Continued to 2013 by committee

 

SB 79 Bid match preference for State businesses

Chief patron: Sen. John Watkins (R-Midlothian)

Summary: Provides a bid match preference forVirginia business. Under the bill, aVirginia business has an opportunity to match the lowest bid of an out-of-state bidder if the bid of aVirginia business is within five percent or $10,000 of the lowest bid of an out-of-state bidder, whichever is less. The bill also provides that to be deemed a resident of Virginia, a Virginia person, firm, or corporation must have paid unemployment taxes or income taxes in Virginia in addition to being organized pursuant to Virginia law or maintaining a principal place of business within Virginia.

PW Chamber position: Oppose

Status: Passed by indefinitely by committee

 

SB 112 Datacenter Retail Sales and Use Tax exemption

Patron: Sen. Ryan McDougle (R-Mechanicsville)

Summary: Expands the existing datacenter sales and use tax exemption to tenants of the centers, and by including jobs created not only by the data center operator but also by the tenants of the data center in collectively meeting the level of new jobs required for eligibility for the exemption.

PW Chamber position: Support

Status: Reported from House subcommittee with amendments

 

SB 129 State mandates on localities

Patron: Sen. William Stanley (R-Moneta)

Summary: Directs the Governor to temporarily suspend certain unfunded state mandates on localities pending a review of such mandates.

PW Chamber position: Support

Status: Continued to 2013 by committee

 

SB 181 Remittance of use tax

Patron: Sen. Richard Stuart (R-Montross)

Summary: Provides that use tax be reported annually rather than every three months.

PW Chamber position: Support

Status: Continued to 2013 by committee

 

SB 226 Subtraction of capital gains from Income tax

Patron: Sen. Mark Herring (D-Leesburg)

Summary: Extends the subtraction from individual and corporate income tax for capital gains from investments in qualified businesses from June 30, 2013, to June 30, 2015.

PW Chamber position: Support

Status: Reported by House subcommittee

 

SB 368 Major business facility job tax credit

Patron: Sen. Bryce Reeves (R-Fredericksburg)

Summary: Extends the time during which the major business facility job tax credit may be taken over a two-year period from December 31, 2012, to December 31, 2014.

PW Chamber position: Support

Status: Passed the Senate

 

SB 549 Machinery and Tools Investment Grant Program

Patron: Sen. Frank Wagner (R-Virginia Beach)

Summary: Creates a grant program that would allow a person to apply for a grant for machinery and tools in service less than two years equal to the amount of local machinery and tools taxes paid.  The amount of the grant would be capped at the amount of taxes that would be paid under that rate of tax imposed on June 30, 2012.

PW Chamber position: Support

Status: Passed the Senate

 

SB 572 Preference for local businesses.

Patron: Sen. Jill Vogel (R-Winchester)

Summary:  Allows a locality to give a procurement preference to persons, firms, or corporations having principal places of business in the locality if such bidder’s bid is within five percent of the lowest bid.

PW Chamber position: Oppose

Status: Passed by indefinitely by committee

 

SB 589 Resident employment and apprenticeship participation in public procurement

Patron: Deeds

Summary: Requires all public bodies to include in every contract of more than $100,000 that involves the performance of work within the Commonwealth provisions requiring the contractor to agree (i) that 51 percent of all positions created in performance of the contract be filled by Virginia residents, (ii) that 35 percent of the total hours worked by apprentices in positions created in performance of the contract be performed by Virginia residents, and (iii) to use the Virginia Employment Commission as the first source of referral for obtaining qualified applicants for any new position.

PW Chamber position: Oppose

Status: Passed by indefinitely by committee

SB 594 Acquisition of land by localities

Patrons: Sen. Barbara Favola (D-Arlington), Sen. William Stanley (R-Moneta)

Summary: Allows counties and cities to acquire land within their boundaries for development of business or industry by voluntary sale, but not by condemnation; current law allows such land acquisition only by towns.

PW Chamber position: Support

Status: Passed the Senate

 

SB 601 Requirement that American iron, steel, etc., be used in public works projects

Patron: Sen. Richard Saslaw (D-Springfield)

Summary: Requires public contracts for the construction, reconstruction, alteration, repair, improvement, or maintenance of a public building or public works to contain a provision that the iron, steel, and manufactured goods used or supplied in the performance of the public contract or any subcontract are manufactured in the United States.

PW Chamber position: Oppose

Status: Continued to 2013 by committee

 

SB 678 Governor’s reorganization of executive branch of state government

Patron: Sen. Ryan McDougle (R-Mechanicsville)

Summary:  Reorganizes the executive branch of state government.

PW Chamber position: Support

Status: Reported from House committee with amendments

 

SB 679 Elimination of State mandates

Patron: Sen. Stephen Newman (R-Forest)

Summary: Eliminates several statewide mandates on local and regional government entities relating to procurement procedures, education, and land use.

PW Chamber position: Support

Status: Passed by Senate

 

SJ 3 Eminent Domain Constitutional amendment

Chief patron: Sen. Mark Obenshain (R-Harrisonburg)

Summary: Revises the prohibition on the enactment by the General Assembly of laws whereby private property may be taken or damaged. An existing provision authorizing the General Assembly to define what constitutes a public use is removed. The proposed amendment provides that private property can be taken or damaged only for a public use, only with just compensation to the owner, and only so much taken as is necessary for the public use. Just compensation must equal or exceed the value of the property taken, lost profits and lost access, and damages to the residue caused by the taking. A public service company, public service corporation, or railroad exercises the power of eminent domain for public use when such exercise is for the authorized provision of utility, common carrier, or railroad services. In all other cases, a taking or damaging of private property is not for public use if the primary use is for private gain, private benefit, private enterprise, increasing jobs, increasing tax revenue, or economic development, except for the elimination of a public nuisance existing on the property. The condemner bears the burden of proving that the use is public, without a presumption that it is.  The Resolution incorporates SJR 67 and SJR 117.

PW Chamber position: Oppose

Status: Passed the Senate

 

Transportation

HB 393 Motor fuels tax rate increase

Patron: Del. Algie Howell (D-Norfolk)

Summary:  Increases the motor fuels tax rate by $0.10 per gallon and dedicates the additional revenue to the operation, maintenance, improvement, and expansion of the Commonwealth’s transportation system.

PW Chamber position: Support

Status: Left in committee

 

HB 477 Highway Maintenance Funds

Patron: Del. Dave Albo (R-Springfield)

Summary:  Provides that when allocating funds for the interstate system of highways, the primary system of state highways, and the secondary system of state highways that the Commonwealth Transportation Board shall consider achieving a minimal level of disparity among highway construction districts.

PW Chamber position: Support

Status: Passed the House

HB 551 Telework expenses tax credit

Patron: Del. Barbara Comstock (R-McLean)

Summary: Extends the telework expenses tax credit for employers through December 31, 2015.

PW Chamber position: Support

Status: Passed the House

 

HB 599 Long-range Planning inNorthern Virginia Transportation District

Patron: Del. Jim LeMunyon (R-Chantilly)

Summary: Establishes responsibilities for various entities for long-range transportation planning for the Northern Virginia Transportation District.

PW Chamber position: Support

Status: Passed the House

 

HB 600 Composition of Commonwealth Transportation Board

Patron: Del. Jim LeMunyon (R-Chantilly)

Summary: Changes the composition of the CTB. One member will be appointed from each ofVirginia’s congressional districts and three more will be at-large.

PW Chamber position: Support

Status: Rolled into HB 864

 

HB 601Washington Metropolitan Area Transit Authority

Patron: Del. Jim LeMunyon (R-Chantilly)

Summary: Provides that in appointingVirginia members of the Board of Directors of the Washington Metropolitan Area Transit Authority (WMATA), the Northern Virginia Transportation Commission shall include the Secretary of Transportation or his designee as a principal member on the WMATA Board of Directors.

PW Chamber position: Support

Status: Passed the House

 

HB 614 Comprehensive plans

Patron: Del. Jim LeMunyon (R- Chantilly)

Summary: Provides that the comprehensive plan shall control the future land use decisions of the governing body. No zoning amendment shall be approved unless it has been determined to be substantially in accord with the adopted comprehensive plan.

PW Chamber position: Oppose

Status: Left in committee

HB 728 Transportation impact fees

Patron:Del. Mark Dudenhefer (R-Stafford)

Summary: Provides that if a specific development or subdivision received final site plan or subdivision approval prior to the effective date of the locality’s impact fee ordinance, the amount of the impact fee to be imposed may be determined at any time prior to the issuance of a building permit. Under current law, the amount of the impact fee must be determined before or at the time of site plan or subdivision approval.

PW Chamber position: Oppose

Status: Left in committee

 

HB 802 Establishing a Virginia Pump Toll

Patron: Del. Joe May (R-Loudoun)

Summary: Imposes the Virginia Pump Toll (“FareShare”), in the amount of $0.50 on each use of a retail motor fuels pump and an additional $0.50 when purchasing 35 or more gallons. Revenue from the FareShare shall be used for highway maintenance and operation in the highway construction district in which the motor fuel is sold.

PW Chamber position: Support

Status: Left in committee

HB 827 Transportation districts

Patron: Del. Robert Marshall (R-Manassas)

Summary: Repeals the allocation of funds to transportation districts.

PW Chamber position: Oppose

Status: Tabled by committee

HB 864 Commonwealth Transportation Board composition

Patron: Del. Tom Rust (R-Herndon)

Summary: Changes the composition of the CTB so that one member will be appointed from each of Virginia’s congressional districts and three more will be at-large appointees. The bill also replaces the term metropolitan statistical areas with metropolitan planning areas with populations greater than 200,000.

PW Chamber position: Support

Status: Continued to 2013 by Senate committee

HB 898 Highway Maintenance and Operating Fund

Patron: Del. Dave Albo (R-Springfield)

Summary: Dedicates to the Highway Maintenance and Operating Fund (i) one-third of the total revenue from the insurance license tax and (ii) the amount of current state sales and use tax revenue attributable to a 0.25 percent sales and use tax rate.

PW Chamber position: Support

Status: Left in Committee

 

HB 999 Tax Credit for Individual Who Teleworks

Patron el. David Ramadan (R-South Riding)

Summary: Creates a $500 credit for an individual who teleworks a minimum of 20 hours per week during at least 45 weeks of the year.

PW Chamber position: Support

Status: Continued to 2013 by committee

 

HB 1000 Telework expenses tax credit

Patron: Del. David Ramadan (R-South Riding)

Summary: Raises the cap on the aggregate amount of tax credits available in calendar years 2012 and 2013 for telework expenses from $1 million to $1.5 million. The bill also raises the cap on the amount of credits that can be claimed by an employer from $50,000 per employer to $75,000 per employer.

PW Chamber position: Support

Status: Continued to 2013 by committee

HB 1241 Indexing Motor fuels tax

Patron: Del. Harry Purkey (R-VirginiaBeach)

Summary: Requires that the motor fuels tax rate be indexed on January 1, 2014, and each year thereafter, to the average percentage change in the U.S. Department of Transportation’s Transportation Services Index for the three years ending October 31 of the year immediately preceding the affected year.

PW Chamber position: Support

Status: Left in Committee

 

HB 1248 Transportation funding

Patron: Del. Scott Lingamfelter (R-Woodbridge)

Summary: Provides for the construction, maintenance, and funding of transportation by (i) increasing the dedicated transportation allocation of the sales and use tax from 0.5 percent to 0.75 percent, phased in over seven years, with the additional revenue dedicated for highway maintenance and operation, (ii) increasing transportation’s share of year-end surpluses to 75 percent, and (iii) allowing the Governor to provide appropriations each year to transportation from a portion of revenue growth.

PW Chamber position: Support

Status: Passed the House

 

HJ 134 Study Economic Impact of proposedBi-County Parkway andTri-County Parkway

Summary: Directs the Joint Legislative Audit and Review Commission to study the potential economic impact of the proposedBi-County Parkway andTri-County Parkway transportation infrastructure projects.

PW Chamber position: Support

Status: Left in committee

SB 238 Telework expenses tax credit

Patron: Sen. Mark Herring (D-Leesburg)

Summary: Extends the telework expenses tax credit for employers through December 31, 2016.

PW Chamber position: Support

Status: Rolled into SB 112

 

SB 531 Northern Virginia Transportation District long-range planning

Patron: Sen. Dave Marsden (D-Burke)

Summary: Establishes responsibilities for various entities for long-range transportation planning for the Northern Virginia Transportation District.

PW Chamber position: Support

Status: Passed the Senate

 

SB 639 Transportation funding

Patron: Sen. Frank Wagner (R-VirginiaBeach)

Summary: Provides revenues for the construction, maintenance, and funding of transportation by (i) allowing localities to contribute to toll road construction, maintenance, and operation, (ii) allowing for the use of “revenue-sharing” funds for secondary highway system maintenance projects carried out by local governments, (iii) annually indexing the motor fuels tax based on changes in the U.S. Department of Labor’s Producer Price Index  for Other Nonresidential Construction in the immediately preceding year, and (iv) imposing an annual $50 license tax on electric motor vehicles. The license tax would also be indexed at the same rate as the motor fuels tax.  Additionally, the bill repeals the five-year sunset on any local income tax adopted by referendum for transportation.

PW Chamber position: Support

Status: Passed the Senate

 

Education and Workforce

 

HB 54 Higher Educational Institutions Bond Act of 2012

Patron: Del. Lacey Putney (I-Bedford)

Summary: Authorizes the issuance of bonds for paying costs of acquiring certain revenue-producing capital projects at institutions of higher learning. Includes funding for projects at GMU.

PW Chamber position: Support

Status: Passed the House

 

HB 137 Workers’ compensation; injuries presumed to be in course of employment.

Patron: Del. Greg Habeeb (R-Salem)

Summary: Revises the provision enacted in 2011 that created a presumption, in the absence of a preponderance of evidence to the contrary, that an injury is work related if an employee is physically or mentally unable to testify and there is unrebutted prima facie evidence that the injury was work related.

PW Chamber position: Support

Status: Passed the House

HB 1049 STEM internship tax credit

Patron: Del. Richard Anderson (R-Woodbridge)

Summary: Establishes an individual and corporate income tax credit for taxpayers employing persons in STEM internship positions in the Commonwealth.

PW Chamber position: Support

Status: Continued to 2013 by committee

 

HB 1050 Tax credit for hiring military persons as STEM interns

Patron: Del. Richard Anderson (R-Woodbridge)

Summary: Establishes an individual and corporate income tax credit for taxpayers employing military persons in STEM internship positions in the Commonwealth.

PW Chamber position: Support

Status: Continued to 2013 by committee

HB 1063 School calendar

Patron: Del. Robert Tata (R-Virginia Beach)

Summary: Makes local school boards responsible for setting the school calendar and determining the opening of the school year and eliminates the post-Labor Day opening requirement and “good cause” scenarios for which the Board of Education may grant waivers of this requirement.

PW Chamber position: Support

Status: Passed the House

 

SB 31 Higher Educational Institutions Bond Act of 2012

Patron: Sen. Chuck Colgan (D-Manassas)

Summary: Authorizes the issuance of bonds in an amount not to exceed $124,594,000 for paying costs of acquiring certain revenue-producing capital projects at institutions of higher learning. Includes funding for GMU.

PW Chamber position: Support

Status: Passed the Senate

 

SB 457 School calendar

Patron: Sen. Dave Marsden (D-Burke)

Summary: Makes local school boards responsible for setting the school calendar and determining the opening of the school year and eliminates the post-Labor Day opening requirement and “good cause” scenarios for which the Board of Education may grant waivers of this requirement. 

PW Chamber position: Support

Status: Passed by indefinitely by committee

 

 

Health Care

 

HB 213 Mandated health insurance essential benefits package

Patron: Del. Jackson Miller (R-Manassas)

Summary: Provides that health insurance plans will not be required, effective January 1, 2014, to provide coverage for state-mandated health benefits to the extent that the benefit is not an essential benefit that is required to be covered under a qualified health plan offered within a health benefit exchange established pursuant to the federal health reform law.

PW Chamber position: Support

Status: Failed to report from subcommittee

 

HB 264 Interstate Health Care Compact

Patron: Del. Chris Peace (R-Mechanicsville)

Summary: Creates the Interstate Health Care Compact to (i) secure the right of the member states to regulate health care in their respective states pursuant to the compact and to suspend the operation of any conflicting federal laws, rules, regulations, and orders within their states and (ii) secure federal funding for member states that choose to invoke their authority under the compact. The bill also creates the Interstate Advisory Health Care Commission to study issues related to the regulation of health care that are of particular concern to the member states and make nonbinding recommendations related to the regulation of health care to the member states for consideration by the legislatures of the member states.

PW Chamber position: Support

Status: Continued to 2013 by committee

 

HB 343 Virginia All-Payer Claims Database

Patron: Del. John O’Bannon (R-Richmond)

Summary as passed House:  Establishes the Virginia All-Payer Claims Database system, to facilitate data-driven, evidence-based improvements in access, quality, and cost of health care through understanding of health care expenditure patterns and operation and performance of the health care system. The bill requires health insurers, health care subscription plans, health maintenance organizations third-party administrators, pharmacy benefits administrators or managers, the Department of Medical Assistance Services, and federal health insurance plans to submit claims data to the All-Payer Claims Database, and requires the Board of Health to promulgate regulations for the operation of the All-Payer Claims Database which will protect patient privacy and data security, identify specific data elements to be submitted and collected, foster geographic and other comparisons of data, allow the public to collect information about and compare services offered by health plans, insurers, and providers; and facilitate value-based, cost-effective purchasing of health care services by public and private purchasers and consumers.

PW Chamber position: Monitor

Status: Passed the House

HB 464 Virginia Health Benefit Exchange

Patron: Del. Kathy Byron (R-Lynchburg)

Summary as introduced: Creates the Virginia Health Benefit Exchange, which will be established and operated by a new division within the State Corporation Commission. The Exchange shall facilitate the purchase and sale of qualified health plans and qualified dental plans to qualified individuals and qualified employers. The Exchange will be funded by assessments on health insurers offering plans in the Exchange. A health plan will not be required to cover any state mandated health benefit if federal law does not require it to be covered as part of the essential benefits package.

PW Chamber position: Monitor

Status: Left in committee

SB 135 Virginia All Payer Claims Database

Patron: Sen. Toddy Puller (D-Mt. Vernon)

Summary: Establishes the Virginia All-Payer Claims Database system, in order to facilitate data-driven, evidence-based improvements in access, quality, and cost of health care and to improve the public health through understanding of health care expenditure patterns and operation and performance of the health care system.

PW Chamber position: Monitor

Status: Passed the Senate

 

SB 496 Virginia Health Benefit Exchange

Patron: Sen. John Watkins (R-Midlothian)

Summary: Creates the Virginia Health Benefit Exchange, which will be established and operated by a new division within the State Corporation Commission. The Exchange shall facilitate the purchase and sale of qualified health plans and qualified dental plans to qualified individuals and qualified employers. The Exchange will be funded by assessments on health insurers offering plans in the Exchange. A health plan will not be required to cover any state mandated health benefit if federal law does not require it to be covered as part of the essential benefits package.

PW Chamber position: Monitor

Status: Continued to 2013 by committee

 

SB 518 Mandated health insurance essential benefits package

Patron: Wagner

Summary as introduced: Provides that health insurance plans will not be required, effective January 1, 2014, to provide coverage for state-mandated health benefits to the extent that the benefit is not an essential benefit that is required to be covered under a qualified health plan offered within a health benefit exchange established pursuant to the federal health reform law.

PW Chamber position: Monitor

Status: Continued to 2013 by committee

SB 615 Health Benefits Exchange Authority

Patrons: Sen. Barbara Favola (D-Arlington), Sen. Ralph Northam (D-Richmond)

Summary as introduced: Creates the Virginia Health Benefits Exchange Authority as a political subdivision of the Commonwealth, as recommended by the Virginia Health Reform Initiative Advisory Council. The Authority is charged with establishing and operating health benefit exchanges for qualified individuals and for small businesses, collectively referred to as the Exchange.

PW Chamber position: Monitor

Status: Passed by indefinitely by committee

 

Energy and Environment

HB 69 Renewable energy portfolio standard program

Patron: Del. David Englin (D-Alexandria)

Summary: Requires each investor-owned electric utility and distribution cooperative to participate in a renewable energy portfolio standard program commencing with calendar year 2013.

PW Chamber position: Oppose

Status: Left in committee

 

HB 176 Nutrient Trading Act

Patron: Del. Barry Knight (R-Virginia Beach)

Summary: Directs the Virginia Soil and Water Conservation Board to adopt regulations governing the certification of certain nutrient credits. Referring to Chesapeake Bay Total Maximum Daily Loads (TMDLs), the legislation sets out certain requirements of the regulations, directs the Department of Conservation and Recreation to establish an online registry of certified credits, and provides for enforcement and appeals.

PW Chamber position: Support

Status: Passed the House

HB 232 Renewable energy

Patron: Del. John Cosgrove (R-Chesapeake)

Summary: Expands the definition of renewable energy to include landfill gas.

PW Chamber position: Support

Status: Passed the Senate

HB 913 Solid waste management plan

Patron: Del. Randy Minchew (R-Loudoun)

Summary: Removes the mandate that a governing body develop and implement a regional or local solid waste management plan, making such plans optional.

PW Chamber position: Support

Status: Passed the House

HJ 27 Mandatory renewable energy portfolio standard program

Patron: Del. Charniele Herring (D-Alexandria)

Summary: Directs the Commission on Electric Utility Regulation to study the establishment of a mandatory renewable energy portfolio standard program for the Commonwealth.

PW Chamber position: Oppose

Status: Left in committee

 

SB 77 Nutrient Trading Act

Patron: Sen. John Watkins (R-Midlothian)

Summary: Directs the Virginia Soil and Water Conservation Board to adopt regulations governing the certification of certain nutrient credits. Referring to Chesapeake Bay Total Maximum Daily Loads (TMDLs), the legislation sets out certain requirements of the regulations, directs the Department of Conservation and Recreation to establish an online registry of certified credits, and provides for enforcement and appeals.

PW Chamber position: Support

Status: Passed the Senate

SB 539 Forward energy pricing

Patron: Sen. Toddy Puller (D-Mt.Vernon)

Summary: Authorizes any public body to use forward pricing mechanisms for budget risk reduction. Forward pricing mechanisms are contracts or financial instruments that obligate the public body to buy or sell a specified quantity of energy at a future date at a set price or provide the option to buy or sell the contract or financial instrument.

PW Chamber position: Support

Status: Reported from House committee