Virginia Chamber Legislative Position Key:

The Virginia Chamber SUPPORTS this bill.

The Virginia Chamber OPPOSES this bill.

This bill supports a Blueprint Virginia initiative. www.vachamber.com/blueprint

Bills Were Watching

Page 1

Legislation of Interest to the Virginia Business Community

Economic Development
Bill Patron Summary Ports tax credits. Changes Virginia's ports-related tax credits by increasing the annual amount of international trade facility tax credits that may be issued from $250,000 to $1.25 million, decreasing the annual amount of barge and rail usage tax credits that may be issued from $1.5 million to $500,000, and allowing a taxpayer to be eligible for the port volume increase tax credit and the barge and rail usage tax credit if the taxpayer meets the criteria for both. The bill reduces from 10 percent to five percent the minimum annual increase in cargo transported through a maritime port that is a condition of eligibility for the international trade facility tax credit. The bill also makes roll-on/roll-off cargo eligible for the international trade facility, port volume increase, and barge and rail usage tax credits.The provisions of the bill would become effective for taxable years beginning on or after January 1, 2014. Summary Position Results

HB873

Jones

Signed by Governor

Education and Workforce

Bill HB30/ SB30 Patron Jones/ Stosch Position Results Item 135 (M) --Funding to recruit and retain teachers in STEM subjects

HB30/ SB30

Jones/ Stosch

Item 210 (O)funding to implement SySTEMic Solutions initiative to address needs in STEM

Bills Were Watching

Page 2

HB30/ SB30

Jones/ Stosch

Item 136Improve flexibility of the Virginia Preschool Initiative and use of kindergarten readiness assessment programs

HB30/ SB30

Jones/ Stosch

4-10.00Implement Virginia Higher Education Opportunity Act of 2011

HJ1

Greason

Study; Teacher Career Ladder program; report. Requests the Department of Education to study and make recommendations regarding the feasibility of implementing a Teacher Career Ladder program in the Commonwealth.

Passed

HB35 HB42 HB333 HB386 HB577 HB610 SB131

Kory Habeeb Greason Comstock Stolle Robinson Newman

School calendar. Makes local school boards responsible for setting the school calendar and determining the opening day of the school year and eliminates the post-Labor Day opening requirement.

Failed

HB930/ SB306

Greason/ Deeds

HB1008

Byron

HB1009

Byron

Standards of Learning assessments; reform. Provides that the number and type of Standards of Learning assessments shall not exceed 17 specified assessments in grades three through eight. The bill requires each local school board to certify that is has provided instruction and administered an alternative assessment, in conformance with Board guidelines, for each subject area in which the Standards of Learning assessment was not administered. The bill also requires the Secretary of Education to establish the Standards of Learning Innovation Committee to periodically review the Standards of Learning and assessments. Voluntary apprenticeships. Conforms provisions of Virginia's voluntary apprenticeship program to federal law in order to ensure the Department of Labor and Industry's continued recognition as a State Apprenticeship Agency. Changes include transferring to the Commissioner of Labor and Industry powers that currently may be exercised by the Apprenticeship Council and removing the exemption for apprentices currently in the Virginia Minimum Wage Act. Recasts the Virginia Workforce Council as the Virginia Board of Workforce Development. The Governor is authorized to appoint a Chief Workforce Development Advisor, and related responsibilities of the Governor are assigned to the Chief Workforce Development Advisor, who shall serve as lead staff to the Board. The Office of the Chancellor of the Virginia Community College System will provide staff support to accomplish the federally mandated requirements of the federal Workforce Investment Act. Staff support for the other duties and functions of the board are to be provided by personnel

Signed by Governor

Signed by Governor

Passed

Bills Were Watching

Page 3

HB1115

Greason

SB539

Howell

from the Office of the Secretary of Commerce and Trade pursuant to a memorandum of agreement. The bill increases the membership of the Board by adding the Secretary of Veterans Affairs and Homeland Security and a representative of the business community. The Board is directed to create two new committees, of which one will address performance and accountability and the other of which will focus on military transition assistance. The bill also directs the establishment of an executive committee of the Board, which shall establish meeting agendas, approve reports to the Governor, and respond to certain urgent issues between scheduled Board meetings. Finally, the measure repeals the Advantage Virginia Incentive Program, Fund, and Foundation. Virtual Virginia; local school divisions; shared online courses. Permits the Department of Education to contract with one or more local school boards that have created online courses to make such courses available to other school divisions through Virtual Virginia. The bill permits such school divisions to charge a per-student or per-course fee, subject to Board of Education approval. The bill requires the Department to establish the Virtual Learning Advisory Committee to advise the Department on (i) online courses, in-service training, and digital instructional resources that school divisions need to meet the Commonwealth's graduation requirements and (ii) strategic planning to expand blended and online learning opportunities in Virginia's public schools. The bill permits the Department to charge school divisions requesting to offer a course through Virtual Virginia and multidivision online providers an application fee. Secretary of Education; annual report. Requires the Secretary of Education, on or before October 1 of each year, to report to the Governor and the General Assembly on the Commonwealth's efforts to promote science, technology, engineering, and mathematics education; career readiness; and career and professional certification at all levels of education. Summary Minimum wage. Increases the minimum wage from its current federally mandated level of $7.25 per hour to $8.50 per hour effective July 1, 2014, unless a higher minimum wage is required by the federal Fair Labor Standards Act. The act will expire at such time as the federal minimum wage equals or exceeds $8.50 per hour. Employment applications; inquiries regarding criminal arrests, charges, or convictions; penalty. Prohibits state agencies and private employers from including on any employment application a question inquiring whether the prospective employee has ever been arrested or charged with, or convicted of, any crime, subject to certain exceptions. A prospective employee may not be asked if he has ever been convicted of any crime unless the inquiry takes place after the prospective employee has received a conditional offer of employment, which offer may be withdrawn if the prospective employee has a conviction record that bears a rational relationship to the duties and responsibilities of the position. A prospective employee may not be asked if he has ever been arrested or charged with a crime unless the inquiry takes place after the prospective employee has received a conditional offer of employment, which offer may be withdrawn if (i) the prospective employee's criminal arrest or charge resulted in the prospective employee's conviction of a crime and (ii) the crime of which he was convicted bears a rational relationship to the duties and responsibilities of the position. A private employer who violates the provisions of this section is subject to a civil penalty not to exceed $100 for each violation. Position

Signed by Governor

Left in House Education

Employment Law
Bill HB32 Patron Morrissey Results Tabled in House Commerce and Labor

HB93

Krupicka

Stricken from docket in House General Laws

Bills Were Watching

Page 4

HB422

Davis

Prohibiting certain local government practices that would require contractors to provide certain compensation or benefits. Prohibits local governing bodies from establishing provisions that would require a wage floor of any other employee benefit or compensation, above what is otherwise required by state or federal law, to be provided by a contractor to its employees as part of certain local government contracts. Contracts for landscaping or janitorial services are excluded from the prohibition. The bill provides that its provisions shall have no impact on service contracts executed prior to January 31, 2014 and shall not prohibit a locality from entering into contracts in which a company receiving economic development incentives is required to maintain a certain wage level. Minimum wage. Increases the minimum wage from its current federally mandated level of $7.25 per hour to $8.25 per hour effective July 1, 2014, and to $9.25 per hour effective July 1, 2015, unless a higher minimum wage is required by the federal Fair Labor Standards Act. Nonsolicitation agreements. Establishes five requirements for a valid and enforceable nonsolicitation agreement between an employer and an employee, including a requirement that the restrictions imposed by the agreement are protective of the employer's legitimate business interest. The requirements do not apply to nonsolicitation agreements between an employer and an employee who owned greater than five percent of the ownership interests of the employing business entity. Absent an agreement to the contrary, the solicitation activities that are restrained, prohibited, or otherwise restricted by a nonsolicitation agreement shall not be increased or expanded as a result of the employer being acquired by merging with another business entity. The measure requires courts in actions seeking enforcement of, or challenging the enforceability of, a nonsolicitation agreement to award attorney fees and costs to the prevailing party. The measure does not apply in proceedings to determine the enforceability of agreements entered into prior to July 1, 2014. Safe days for employees. Requires private employers to allow an employee safe days, with pay, if the employee or a family member is a victim of domestic violence, sexual assault, or stalking or is a family member of a victim of domestic violence, sexual assault, or stalking. Employers are required to provide employees with 32 hours per year of safe day time if the employee has less than 120 months of employment with the employer, and 40 hours per year of safe day time if the employee has 120 or more months of employment with the employer. Safe leave is leave from work that is used to allow the employee to obtain for the employee or the employee's family member, as applicable, (i) medical attention needed to recover from physical or psychological injury or disability caused by domestic violence or sexual assault; (ii) psychological or other counseling; (iii) relocation due to the domestic violence, sexual assault, or stalking; or (iv) legal services. Employers are prohibited from discharging or discriminating against an employee because the employee exercises the right to safe days. Minimum wage. Increases the minimum wage from its current federally mandated level of $7.25 per hour to $8.25 per hour effective July 1, 2014, and to $9.25 per hour effective July 1, 2015, unless a higher minimum wage is required by the federal Fair Labor Standards Act.

Passed by Indefinitely in Senate Commerce and Labor

HB536

Plum

Tabled in House Commerce and Labor

HB794

LeMunyon

Left in House Courts of Justice

HB833

Keam

Left in House Commerce and Labor

SB590

Marsden

Tabled in House Commerce and Labor

Energy
Bill HB363 Patron Kory Summary Electric utility regulation; approval of generation facilities. Requires the State Corporation Commission, in its consideration of an application for approval of an electrical generation facility, to consider environmental effects not expressly governed by a permit or expressly considered by a permitting authority, including carbon emissions and the overall Position Results Left in House Commerce and Labor

Bills Were Watching

Page 5

HB949/ SB519

Hugo/ Wagner

impacts of new and existing facilities on the health and welfare of the residents of the Commonwealth. The measure also removes provisions that prohibited the Commission from imposing additional conditions with respect to such matters. Natural gas utilities; upstream supply infrastructure projects. Authorizes a natural gas utility to recover eligible costs of eligible natural gas supply infrastructure projects. A plan for recovery of such costs may provide the utility with an option to receive the gas or sell the gas at market prices. The measure also (i) provides that the transportation of natural gas by pipeline, without providing service to end users within the territory, shall not be considered operating in the territory of another certificate holder; (ii) bars the State Corporation Commission from approving the construction of a natural gas compressor station in an area without the locality's certification only if the area is zoned exclusively for residential use; and (iii) expands the definition of a strategic natural gas facility to include a natural gas transmission company that adds design day deliverability or designed send out of at least 100,000 dekaTherms per day in the aggregate. Natural gas-fueled electric generation facilities; incentives. Study; mandatory renewable energy portfolio standard program; report. Directs the Commission on Electric Utility Regulation to study the establishment of a mandatory renewable energy portfolio standard program for the Commonwealth. The study will (i) address issues associated with transitioning from the existing voluntary renewable energy portfolio standard program to a mandatory program, (ii) determine the costs and benefits that would be associated with requiring electric utilities to meet varying levels of renewable energy portfolio standard goals, (iii) recommend measures to address electric utilities that do not meet the program's goals, and (iv) determine if it is feasible and advisable to require that all electric utilities in Virginia participate in a mandatory renewable energy portfolio standard program. Summary Virginia Energy Plan; carbon dioxide emission control impact; schedule. Requires the Virginia Energy Plan to include, with regard to any regulations proposed or promulgated by the U.S. Environmental Protection Agency to reduce carbon dioxide emissions from fossil fuel-fired electric generating units under Section 37 111(d) of the Clean Air Act, an analysis of the costs and benefits for energy producers and electric utility customers; the effect on energy markets and reliability; and the commercial availability of technology required to comply with such regulations. The measure postpones the due date for quadrennial updates to the Virginia Energy Plan from July 1 to October 1. Interim updates on the Plan are required to be provided by October 1 of the third year of each administration. The measure also requires the Division of Energy of the Department of Mines, Minerals and Energy, in Plan updates starting in 2014, to set forth energy policy positions relevant to any potential regulations of the State Air Pollution Control Board to reduce carbon dioxide emissions from fossil fuel-fired electric generating units under Section 111(d) of the Clean Air Act. The Division is required to address policy options for establishing separate standards of performance for carbon dioxide emissions from existing fossil fuel-fired electric generating units to promote the Plan's overall goal of fuel diversity. The Plan is also required to (i) examine policy options for state regulatory action to adopt less stringent standards or longer compliance schedules than those provided for in applicable federal rules or guidelines and Position

Signed by Governor

HB1224

OQuinn

Left in House Commerce and Labor

HJ76

Herring

Left in House Rules

Environment
Bill Patron Results

HB1261/ SB615

Chafin/ Carrico

Signed by Governor

Bills Were Watching

Page 6

(ii) identify options, to the maximum extent permissible, for any federally required regulation of carbon dioxide emissions from existing fossil fuel-fired electric generating units. Drilling in the Eastern Virginia Groundwater Management Area. Allows the drilling for oil and gas in the Eastern Virginia Groundwater Management Area if certain Department of Environmental Quality (DEQ) standards for the protection of groundwater and surface water are met. The Department of Mining, Minerals and Energy (DMME) is not authorized to issue a permit to drill in the Eastern Virginia Groundwater Management Area until DEQ has completed its review of (i) the current surface water and groundwater quality and quantity regulations in the management area and (ii) any amendments to the regulation that are necessary to protect groundwater and surface water. The DEQ review is to be completed by December 1, 2014. The State Water Control Board, as the policy board, is required to use its best efforts to adopt any changes in the regulations by July 1, 2016. The DEQ is also charged with reviewing any criteria and procedures for preparation and evaluation of the environmental impact assessments that the permit applicant is required to submit to DMME. The bill requires the assessment to include the impact of drilling, production, and transportation on surface and groundwater quality and supply. The DEQ shall use its best efforts to review and incorporate any changes to the assessment by October 1, 2015. Summary Virginia Business One Stop electronic portal program; participation by State Corporation Commission. Requires the State Corporation Commission (SCC) and the Department of Small Business and Supplier Diversity (DSBSD), by December 1, 2014, to implement a hyperlink from the SCC's eFile system to the Business Permitting Center that will facilitate the collection of a user's information to populate any forms that will be required to be completed at a future date. The measure also requires that SCC and DSBSD meet as necessary to further such collaboration. The Secretary of Commerce and Trade is directed to oversee DSBSD's implementation of the provisions. The Secretary of Commerce and Trade and the Secretary of Technology shall have the opportunity to participate in such meetings. Clerk of the State Corporation Commission; secure online system; articles of dissolution. Requires the State Corporation Commission limit the submission of data and documents on behalf of a business entity through its eFile electronic registration system to any user (i) designated to make such submission on behalf of the business entity and (ii) whose identity has been established satisfactorily through a verification process by July 1, 2018. After July 1, 2014 and until this has been implemented by the Commission, no articles of dissolution of a business entity or data or documents that contain officer or director changes shall be accepted through the Commissions eFile electronic registration system. Clerk of the State Corporation Commission; unauthorized filings. Authorizes the clerk of the State Corporation Commission, upon determining that a person who executed or delivered a business entity document to the clerk's office lacked the authority to act on behalf of the business entity, to refuse to accept the document for filing. The clerk is further authorized under such circumstances to summarily remove a filed document, correct the records, and notify the affected business entity. The measure also includes stylistic and technical changes. Position

SB48

Stuart

Tabled in House Commerce and Labor

General Business
Bill Patron Results

HB167

Ramadan

Signed by Governor

HB168

Ramadan

Signed by Governor

HB313

D. Marshall

Signed by Governor

Bills Were Watching

Page 7

Health Care
Bill Patron Summary Position Results

Medicaid Reform and Expansion through market based principles.

HB33/ SB484

Habeeb/ Stuart

Pediatric oral health benefits; reasonable assurance of provision. Declares that a health carrier that makes available in the small group market or individual market a health benefit plan that does not include the minimum essential pediatric oral health benefits required under the federal Affordable Care Act shall be deemed to have obtained reasonable assurance that the pediatric oral health benefits are provided to the plan's purchaser if (i) at least one qualified dental plan offers such benefits and is available for purchase, (ii) the health carrier prominently discloses that its plan does not provide the required benefits, and (iii) the entity offering the qualified dental plan providing the required benefits is licensed to provide them in the Commonwealth.

Signed by Governor

Legal
Bill HB30/ SB30 Patron Jones/ Stosch Summary Support additional funding to fill existing judicial vacancies. Patent infringement; assertions made in bad faith. Prohibits any person from making in bad faith an assertion of patent infringement. The Attorney General or an attorney for the Commonwealth is empowered to accept assurances of voluntary compliance and seek injunctive relief. The Attorney General is authorized to issue civil investigative demands. The measure does not apply to a demand letter or assertion of patent infringement that includes a claim for relief arising under 35 U.S.C. 271(e)(2) or 42 U.S.C. 262. Statutes of limitation; accrual. Provides that in civil actions to recover for damage to property or injury to person, if the injury was not reasonably discoverable on the date it was sustained, the statute of limitations does not begin to run until the date that injury was discovered or should have been discovered. Under current law, in most cases the limitations period begins to run from the date the injury was sustained. No change is made to the law governing limitations periods in medical malpractice cases. Service of process on domestic corporations. Allows process on a Virginia corporation to be served on its registered agent by posting a copy of the process on the front door or main entrance of the corporation's registered office. Grand larceny; threshold. Increases from $200 to $1,000 the threshold amount of money taken or value of goods or chattel taken at which the crime rises from petit larceny to grand larceny. The bill increases the threshold by the same amount for the classification of certain property crimes. Position Results

HB375/ SB150

OQuinn/ Stuart

Passed

HB398

Fariss

Left in House Courts of Justice

SB232

Petersen

Defeated in Senate Courts of Justice

SB251

McEachin

Stricken at Request of Patron in Senate Courts of Justice

Bills Were Watching

Page 8

Military & Veterans Affairs

Bill HB30/ SB30 Patron Jones/ Stosch Summary Item 461 (F)--Funding to support the Virginia Values Veterans Program. Position Results

HB30/ SB30

Jones/ Stosch

Item 144 (M)Funding to support pilot program to assist Virginia veterans and military members in completing degree and professional programs Secretary of Public Safety; Secretary of Veterans Affairs and Homeland Security; transfer of certain powers and duties. Renames the Secretary of Public Safety as the Secretary of Public Safety and Homeland Security and reassigns duties currently assigned to the Secretary of Veterans Affairs and Homeland Security relating to homeland security. The bill renames the Secretary of Veterans Affairs and Homeland Security as the Secretary of Veterans and Defense Affairs. The bill also incorporates portions of the JLARC report relating to improvements to Virginia's homeland security activities. The bill contains numerous amendments to accomplish this transfer of powers and duties. The bill contains an emergency clause. Unemployment compensation; quit to follow military spouse. Provides that good cause for leaving employment exists if an employee voluntarily leaves a job to accompany the employee's spouse, who is on active duty in the military or naval services of the United States, to a new military-related assignment established pursuant to a permanent change of duty order from which the employee's place of employment is not reasonably accessible. The measure applies only if the state to which the spouse is transferred has a similar provision, unless the transfer involves members of the Virginia National Guard relocated within the Commonwealth. Benefits paid to qualifying claimants shall be charged against the pool rather than against the claimant's employer. The measure also repeals Chapter 878 of the 2009 Acts of Assembly, which is similar to this measure but did not take effect because the contingency in its third enactment was not satisfied. The measure will expire on December 31, 2020. The Virginia Employment Commission is required to report to the Commission on Unemployment Compensation regarding the effects of allowing such claimants to be eligible for unemployment benefits. Employment preference for veterans and spouses of certain veterans. Provides that private employers may grant preference in hiring and promotion to a veteran or the spouse of a veteran with a service-connected permanent and total disability. The measure applies only to veterans who are honorably discharged. The measure provides that granting such preference does not violate any local or state equal employment opportunity law. Summary Public-Private Transportation Act of 1995; additional requirements for certain comprehensive agreements. Provides that no comprehensive agreement providing for the lease, operation, or transfer of ownership of a qualifying transportation facility under the Public-Private Transportation Act with a total value of more than $1 billion and having a Position

HB730

Lingamfelter

Signed by Governor

SB18

Locke

Signed by Governor

SB516

Wagner

Signed by Governor

Procurement
Bill HB346/ SB165 Patron James/ Locke Results Left in House Transportation/ Stricken at the Request of the Patron in Senate

Bills Were Watching

Page 9

HB349

James

substantial negative impact on the tax revenues of an affected jurisdiction or substantially increasing the taxes, fees, or expenses that will be paid by residents of an affected jurisdiction may be executed by a state agency unless (i) approved by the Governor and (ii) a bill that includes a specific description of the proposed agreement and its anticipated expenditures and revenues is passed by the General Assembly. Public-Private Transportation Act of 1995 and Public-Private Education Facilities and Infrastructure Act of 2002; additional requirements for comprehensive agreements. Provides that no comprehensive agreement providing for the lease, operation, or transfer of ownership of a qualifying transportation facility under the Public-Private Transportation Act or a qualified project under the Public-Private Education Facilities and Infrastructure Act with a total value of $1 billion or more shall be executed by a state agency unless (i) approved by the Governor and (ii) a bill that includes a specific description of the proposed agreement and its anticipated expenditures and revenues is passed by the General Assembly. Public-Private Transportation Act of 1995; approval of schedule of tolls and fees. Prohibits the inclusion in a comprehensive agreement under the Public-Private Transportation Act of 1995 of a schedule of tolls or user fees for a road, highway, tunnel, or bridge unless the General Assembly, by joint resolution, has approved the schedule. The measure also requires that any user fees provided for in a comprehensive agreement be set forth in a schedule that has been approved by the General Assembly. Public comment and access; presentation to Committees of the General Assembly. Increases time periods for public comment and submission of competing proposals and transparency in agreements pursuant to the Public-Private Transportation Act of 1995. The bill also requires a presentation to the Transportation Committees, Senate Finance Committee, and House Appropriations Committee of the General Assembly for projects in excess of $1 billion. Comprehensive agreement; reduced rates for commuters. Requires comprehensive agreements under the Public-Private Transportation Act of 1995 to include a provision providing for reduced rates for commuters who use the facility at least 20 times per month during a 12-month period.

Transportation

Left in House Transportation

HB1136

Joannou

Left in House Transportation

SB26

Alexander

Stricken at the Request of the Patron in Senate Transportation

SB91

Alexander

Stricken at the Request of the Patron in Senate Transportation

Small Business
Bill Patron Summary Entrepreneur-in-Residence Program. Creates the Entrepreneur-in-Residence Program, a pilot program administered by the Secretary of Commerce and Trade to improve outreach by state government to the private sector. The objectives of the Program are to (i) strengthen coordination and interaction between state government and the private sector on issues relevant to entrepreneurs and small business concerns and (ii) make state government programs and operations simpler, easier to access, more efficient, and more responsive to the needs of small business concerns and entrepreneurs. Under the bill, entrepreneurs-in-residence serve without compensation but, at the discretion of the head of the agency they were appointed to serve, may receive reasonable and necessary expenses incurred in the discharge of their duties. The bill also provides that the Secretary may contract with a public institution of higher education for the management and oversight of Position Results

HB321/ SB362

Landes/ Saslaw

Signed by Governor/ Passed

Bills Were Watching

Page 10

HB932/ SB492

Landes/ McWaters

the Program. The Program was created by Chapter 788 of the Acts of Assembly of 2013 but will not become effective unless reenacted by the 2014 Session of the General Assembly. The Program has a 2017 sunset date. Virginia Economic Development Partnership Authority; Department of Small Business and Supplier Diversity; administration of the Virginia Jobs Investment Program. Changes the administration of the Virginia Jobs Investment Program from the Department of Small Business and Supplier Diversity to the Virginia Economic Development Partnership Authority. Summary 3-5.10 INTANGIBLE HOLDING COMPANY ADDBACK--Notwithstanding the provisions of 58.1-402(B)(8), Code of Virginia, for taxable years beginning on and after January 1, 2004: (i) The exception in 58.1-402(B)(8)(a)(1) for income that is subject to a tax based on or measured by net income or capital imposed by Virginia, another state, or a foreign government shall be limited and apply only to the portion of such income received by the related member, which portion is attributed to a state or foreign government in which the related member has sufficient nexus to be subject to such taxes; and (ii) The exception in 58.1-402(B)(8)(a)(2) for a related member deriving at least one-third of its gross revenues from licensing to unrelated parties shall be limited and apply only to the portion of such income derived from licensing agreements for which the rates and terms are comparable to the rates and terms of agreements that the related member has actually entered into with unrelated entities. Domestic international sales corporations; income taxation. Exempts a domestic international sales corporation (DISC) and any income attributable to a DISC from income taxes. BPOL; appeal of business license tax classification. Permits a taxpayer to appeal to the Tax Commissioner or request a written ruling from him with regard to the classification of the business for BPOL tax purposes, regardless of whether the locality has conducted an audit, issued an assessment, or taken any other action. Personal property tax; classification. Authorizes a locality to establish lower personal property tax rates on the tangible property of business that locate for the first time in the locality. The lower rates would apply for the first two tax years that the business is subject to the personal property tax. If a locality has enacted an exemption from the local license tax or fee (BPOL)for beginning businesses, only those beginning businesses that qualify for such exemption may be eligible for the lower personal property tax rates. Research and development expenses tax credit. Increases beginning with taxable year 2014 the amount of the credit allowed from 15 percent of the first $167,000 to 15 percent of the first $234,000 of Virginia qualified research and development expenses, and from 20 percent of the first $175,000 to 20 percent of the first $234,000 of Virginia qualified research and development expenses conducted in conjunction with a Virginia institution of higher education. The bill increases the maximum annual amount of tax credits that may be issued each fiscal year from $5 million to $6 million. The bill allows a pass-through entity to elect to receive and claim any credit at the pass-through entity level in lieu of the credit being allocated to the individual partners, members, or shareholders of the pass-through entity. Position

Signed by Governor

Tax
Bill Patron Results

HB30/ SB30

Jones/ Stosch

HB480/ SB515

Villanueva/ Wagner

Signed by Governor

HB497

Head

Signed by Governor

HB617

Davis

Signed by Governor

HB1220/ SB623

Comstock/ McDougle

Signed by Governor

Bills Were Watching

Page 11

Finally, the bill requires any taxpayer applying for the credit to provide information to the Department of Taxation relating to the number of full-time employees of the taxpayer; the taxpayer's industry sector; the area, discipline, or field of Virginia qualified research performed by the taxpayer; the taxpayer's total gross receipts for the relevant taxable year; and whether the qualified research was performed in conjunction with a Virginia institution of higher education. Further, regardless of how few taxpayers take the credit, the Department, upon request by the General Assembly or any duly constituted committee of the General Assembly, must disclose the total aggregate amount of credits under 58.1-439.12:08 taken by all taxpayers.

Technology
Bill HB30/ SB30 Patron Jones/ Stosch Summary 1-119Funding for the Innovation and Entrepreneurship Investment Authority; Foster development of Virginia-based technology, biosciences, and energy companies; expand initiatives in cyber security; expand broadband; and promote modeling and simulation in new growth industries. Position Results

Tourism
Bill Patron HB460 Kilgore Summary Income tax; motion picture production credit. Changes the motion picture production income tax credit by (i) increasing the total biennium cap for all such credits from $5 million to $25 million ($12.5 million annually), and (iii) having the credit expire on December 31, 2018. The bill also requires the Department to publish information regarding the credit regardless if it does not prevent the identification of the taxpayer claiming the credit. Summary Allocations within highway construction districts. Provides for the development of a prioritization process for projects funded by the Commonwealth Transportation Board. Such prioritization shall weight factors such as congestion mitigation, economic development, accessibility, safety, and environmental quality and be applied within each highway construction district. New technologies and innovations in statewide transportation programs. Requires the Secretary of Transportation and VDOT to incorporate new smart road technologies and innovations in statewide transportation technology programs. New technologies and innovations in statewide transportation programs. Requires the Secretary of Transportation and VDOT to incorporate new smart road technologies and innovations in statewide transportation technology programs. Innovation and Technology Transportation Fund. Creates the Innovation and Technology Transportation Fund to fund pilot programs and fully developed initiatives pertaining to high-tech infrastructure improvements and requires the Commonwealth Transportation Board to allocate certain moneys to the Fund. Statewide transportation technology goals and plan of action. Requests the Secretary of Transportation and VDOT to create and implement statewide transportation technology goals and a five-year plan of action. Such goals and plan are to be directed to enhancing the efficiency, safety, and convenience of all modes of transportation throughout the Commonwealth. Position Results Signed by Governor

Transportation
Bill Patron Position Results HB2 Stolle Signed by Governor

HB1090

Villanueva

Signed by Governor

HB1095

Peace

Signed by Governor

HJ122

LeMunyon

Passed

Bills Were Watching

Page 12

Unemployment Insurance
Bill Patron HB22 Kory Summary Unemployment compensation; benefit ratio. Provides that an employer's payroll, for purposes of calculating its benefit ratio and state unemployment tax rate, shall be deemed to be $1 when the employer's taxable payroll for the applicable 12-month period is not more than $1. The measure eliminates the necessity of dividing the employer's benefit charges by a payroll amount of $0, which produces an infinite benefit ratio and results in an assessment of state unemployment taxes at the highest rate. Unemployment compensation; Self-Employment Assistance Pilot Program; report. Establishes the Self-Employment Assistance Pilot Program (Program), under which up to 100 unemployed individuals receive unemployment compensation while they are establishing their own businesses and becoming self-employed. Participants receive an allowance in lieu of weekly regular benefit payments and may use the allowance for entrepreneurial training, business counseling, and technical assistance. The bill provides for the Virginia Employment Commission to develop and implement the program and to report annually to the Governor and the General Assembly on (i) the total number of participants, (ii) the fiscal status of the Program, and (iii) any other information that will assist in determining the viability of the Program. Unemployment compensation; quit to follow military spouse. Provides that good cause for leaving employment exists if an employee voluntarily leaves a job to accompany the employee's spouse, who is on active duty in the military or naval services of the United States, to a new military-related assignment established pursuant to a permanent change of duty order from which the employee's place of employment is not reasonably accessible. The measure applies only if the state to which the spouse is transferred has a similar provision, unless the transfer involves members of the Virginia National Guard relocated within the Commonwealth. Benefits paid to qualifying claimants shall be charged against the pool rather than against the claimant's employer. The measure also repeals Chapter 878 of the 2009 Acts of Assembly, which is similar to this measure but did not take effect because the contingency in its third enactment was not satisfied. The measure will expire on December 31, 2020. The Virginia Employment Commission is required to report to the Commission on Unemployment Compensation regarding the effects of allowing such claimants to be eligible for unemployment benefits. Unemployment compensation; short-time compensation program. Establishes a shorttime compensation program that provides employers with the option of reducing the hours worked by employees, while permitting the employees whose hours are reduced to receive partial compensation for lost wages. Program participation requires Virginia Employment Commission approval of a plan, which must provide that the reduction in hours of work is in lieu of a layoff of an equivalent percentage of employees and that employees' health and retirement benefits cannot be reduced or eliminated under the plan. The measure requires the Commission to submit reports on the program's implementation and accomplishments, with recommendations to improve its effectiveness. The measure becomes effective January 1, 2015. Unemployment benefits; financial literacy course; volunteer service. Allows recipients of unemployment benefits to extend their benefits through completion of a financial literacy course and volunteer service at a nonprofit organization. Position Results Signed by Governor

HB798

Lopez

Tabled in House Commerce and Labor by Voice Vote

SB18

Locke

Signed by Governor

SB110

Stanley and Barker

Passed

SB266

Stanley

Signed by Governor

Bills Were Watching

Page 13

Amended: Unemployment benefits; financial literacy course. Requires the Virginia Employment Commission (VEC), either by itself or in collaboration with workforce service partner entities, to provide information to all unemployment benefits claimants and job seekers on courses in financial literacy. Such courses shall be at no cost to claimants and to job seekers and may be offered online or in any other medium the VEC deems appropriate.

Bills Were Watching

Page 14

919 East Main Street Suite 900 Richmond, VA 23219 www.vachamber.com

Barry DuVal President & CEO b.duval@vachamber.com Keith Martin Vice President of Public Policy and General Counsel k.martin@vachamber.com (804) 237-1456 Ryan Dunn Vice President of Business & Government Relations r.dunn@vachamber.com (804) 237-1455 Samantha Quig Manager of Government Affairs s.quig@vachamber.com (804) 237-1457 Mark Barrett Public Policy Coordinator m.barrett@vachamber.com (804) 237-1464

Bills Were Watching

Page 15