VRF Retail Advocate - January 18, 2022 - Virginia Retail Federation

We wrapped up the first week of the 2022 General Assembly Session with the Inauguration of Governor Glenn Youngkin, Lieutenant Governor Winsome Sears, and Attorney General Jason Miyares. With both the House of Delegates and the Senate duly organized and the new Administration in place, the pace of Session will pick up very quickly.

Your VRF team is up at the Capitol representing the retail voice on any issues that impact the industry. As in years past, we will be sending out Action Alerts on priority issues. It is imperative that members participate in any Action Alert you receive. This is just one more way for your voice to be heard on issues that impact your individual business.

Below you will find a breakdown of legislation Virginia Retail Federation is tracking, organized by legislative topic. As of the distribution of this report, we have close to 140 bills in our tracking list. To view the full list, please click here. It is likely that this list will grow as bills continue to hit the system.

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Minimum Wage

Several Bills have been introduced that relate to minimum wage. Delegates Marshall, McNamara, and Freitas, and Senator Peake have all introduced legislation that seek to freeze Virginia’s minimum wage at the current rate of $11 an hour. The legislation also repeals the rest of the provisions relating to increasing the state minimum wage based on an annual adjusted minimum wage determined by the Department of Labor and Industry.

Delegate Phillip Scott introduced HB1040 which exempts small employers, defined as those with 10 or fewer employees from the state minimum wage requirements. Meaning that they would be only required to comply with federal minimum wage requirements.

HB 171 - Marshall - Minimum wage; removes certain provisions relating to increasing state wage.

Repeals certain provisions of the Code of Virginia related to increasing the state minimum wage to more than $11.00 per hour. The bill also repeals provisions related to increasing the state minimum wage based on an annual adjusted minimum wage determined by the Department of Labor and Industry.

HB 296 - McNamara - Minimum wage; removes certain provisions relating to increasing state wage.

Repeals certain provisions of the Code of Virginia related to increasing the state minimum wage to more than $11.00 per hour. The bill also repeals provisions related to increasing the state minimum wage based on an annual adjusted minimum wage determined by the Department of Labor and Industry.

HB 320 - Freitas - Minimum wage; removes certain provisions relating to increasing state wage.

Repeals certain provisions of the Code of Virginia related to increasing the state minimum wage to more than $11.00 per hour. The bill also repeals provisions related to increasing the state minimum wage based on an annual adjusted minimum wage determined by the Department of Labor and Industry.

HB 1040 - Scott, P.A. - Minimum wage; small employers.

Exempts employers that are individuals or entities with 10 or fewer employees from the state minimum wage requirements.

SB 173 - Peake - Minimum wage; removes certain provisions relating to increasing state wage.

Repeals certain provisions of the Code of Virginia related to increasing the state minimum wage to more than $11.00 per hour. The bill also repeals provisions related to increasing the state minimum wage based on an annual adjusted minimum wage determined by the Department of Labor and Industry.

Inform Act

The Inform Act is legislation which help improve safety and transparency on online marketplaces. This is accomplished by requiring the Online Marketplaces to collect and verify information on the identity of a High-Volume Third-Party Sellers, as defined in the legislation as a seller who makes 200 more discrete transactions and $5,000 or more in gross revenues in a continuous 12-month period over the past 24 months.

HB 888 - Kilgore - Online Marketplace Consumer Protection Act; high-volume third-party sellers in a online marketplace.

Establishes requirements for high-volume third-party sellers, defined in the bill as participants in an online marketplace that have entered into at least 200 discrete sales or transactions for 12 continuous months during the past 24 months resulting in accumulation of an aggregate total of $5,000 or more in gross revenues. The bill requires high-volume third-party sellers to provide identifying information and contact information to the online marketplace and requires the online marketplace to verify the information upon receipt. The bill requires that high-volume third-party sellers make certain conspicuous disclosures to consumers on their product listing pages, with certain limited exceptions. The bill authorizes the Attorney General to initiate an action in the name of the Commonwealth against an online marketplace or high-volume third party seller that has violated the provisions of the bill and either failed to cure the violation within a 30-day cure period or failed to comply with an express written statement to the Attorney General that the alleged violations have been cured and no further violations will occur. The Attorney General may seek an injunction to restrain any such violations and civil penalties of up to $7,500 for each such violation.

SB 341 - Barker - Consumer protection; online marketplace; high-volume third-party sellers.

Establishes requirements for high-volume third-party sellers, defined in the bill as participants in an online marketplace that have entered into at least 200 discrete sales or transactions for 12 continuous months during the past 24 months resulting in accumulation of an aggregate total of $5,000 or more in gross revenues. The bill requires high-volume third-party sellers to provide identifying information and contact information to the online marketplace and requires the online marketplace to verify the information upon receipt. The bill requires that high-volume third-party sellers make certain conspicuous disclosures to consumers on their product listing pages, with certain limited exceptions. The bill provides that any violation of its provisions is a prohibited practice under the Virginia Consumer Protection Act.

Sales Tax/Grocery Tax

One of Governor Youngkin’s initiatives is to eliminate the Grocery Tax in Virginia. There are several pieces of legislation that have been introduced to eliminate tax (state, regional, and local sales taxes) on food purchased for human consumption and essential personal hygiene products.

HB 90 - McNamara - Sales tax; exemption for food purchased for human consumption & essential personal hygiene products.

Exempts food purchased for human consumption and essential personal hygiene products (the grocery tax) from all state, regional, and local sales taxes. The bill dedicates state sales tax revenue to provide a supplemental school payment to counties and cities. For fiscal year 2023, the payment is the county or city's fiscal year 2022 distribution of revenue from the grocery tax. For fiscal year 2024 and after, the payment is the previous year's payment multiplied by the county or city's local sales tax index, defined in the bill as the ratio by which sales tax revenues in a county or city for the current year exceed the previous year's revenues.

HB 1008 - Durant - Sales tax; exemption for food purchased for human consumption and essential personal hygiene.

Exempts food purchased for human consumption and essential personal hygiene products (the grocery tax) from all state, regional, and local sales taxes.

SB 380 - McDougle - Sales tax; exemption for food purchased for human consumption & essential personal hygiene products.

Exempts food purchased for human consumption and essential personal hygiene products (the grocery tax) from all state, regional, and local sales taxes. The bill dedicates state sales tax revenue to provide a supplemental school payment to counties and cities. For fiscal year 2023, the payment is the county or city's fiscal year 2022 distribution of revenue from the grocery tax. For fiscal year 2024 and after, the payment is the previous year's payment multiplied by the county or city's local sales tax index, defined in the bill as the ratio by which sales tax revenues in a county or city for the current year exceed the previous year's revenues.

SB 571 - Newman - Sales tax; exemption for food purchased for human consumption and essential personal products.

Exempts food purchased for human consumption and essential personal hygiene products (the grocery tax) from all state, regional, and local sales taxes.

SB 609 - DeSteph - Sales tax; exemption for food purchased for human consumption and essential personal hygiene.

Exempts food purchased for human consumption and essential personal hygiene products (the grocery tax) from all state, regional, and local sales taxes.

There are also a few pieces of legislation that just eliminate the tax on essential personal hygiene products. These will most likely be rolled into the larger more encompassing bills that eliminate both the tax on food for human consumption and essential personal hygiene products.

HB 696 - Keam - Retail Sales and Use tax; exemption for essential personal hygiene products.,

Provides a sales and use tax exemption for essential personal hygiene products, defined in the bill as (i) nondurable incontinence products such as diapers, disposable undergarments, pads, and bed sheets and (ii) menstrual cups and pads, panty liners, sanitary napkins, tampons, and other products used to absorb or contain menstrual flow. Under current law, such products are taxed at a reduced state sales and use tax rate of 1.5 percent and the standard local rate of one percent. The bill contains technical amendments.

HB 848 - Lopez - Sales and use tax; exemption for incontinence products.

Provides a sales and use tax exemption for nondurable incontinence products such as diapers, disposable undergarments, pads, and bed sheets. Under current law, such products are taxed at a reduced state sales and use tax rate of 1.5 percent and the standard local rate of one percent.

SB 451 - Boysko - Retail Sales and Use tax; exemption for essential personal hygiene products.

Provides a sales and use tax exemption for essential personal hygiene products, defined in the bill as (i) nondurable incontinence products such as diapers, disposable undergarments, pads, and bed sheets and (ii) menstrual cups and pads, pantyliners, sanitary napkins, tampons, and other products used to absorb or contain menstrual flow. Under current law, such products are taxed at a reduced state sales and use tax rate of 1.5 percent and the standard local rate of one percent. The bill contains technical amendments.

Several bills have been introduced to increase the sales tax in certain localities in order to support school construction projects. We have seen these bills pass the last several years. A list of those bills is below. One, in particular, is worth noting (HB531) because it authorized all counties and cities to impose an additional local sales tax at a rate not to exceed 1%, with the revenue to be used only for capital projects for the construction or renovations of schools. This would mean that localities that have not already implemented this 1% sales tax rate increase would no longer be required to come to the General Assembly to seek passage of legislation to get their name added to the list of localities allowed to implement the increased sales tax.

HB 63 - Edmunds - Sales and use tax, local; additional tax in Prince Edward County to support construction of schools.

Adds Prince Edward County to the list of localities that, under current law, are authorized to impose an additional local sales and use tax at a rate not to exceed one percent, with the revenue used only for capital projects for the construction or renovation of schools.

HB 531 - Hudson - Additional local sales and use tax to support schools.

Authorizes all counties and cities to impose an additional local sales and use tax at a rate not to exceed one percent, with the revenue used only for capital projects for the construction or renovation of schools. Under the bill, the tax can only be imposed if it is initiated by a resolution of the local governing body and approved by the voters in a referendum. The bill requires the governing body to specify in the enacting ordinance the time period, not to exceed 20 years, for which the tax would be imposed, and revenue from the tax is required to be used solely for capital projects for new construction or major renovation of schools in the locality enacting the tax.

Under current law, only Charlotte County, Gloucester County, Halifax County, Henry County, Mecklenburg County, Northampton County, Patrick County, Pittsylvania County, and the City of Danville are authorized to impose such a tax.

HB 545 - Hudson - Additional local sales and use tax to support schools.

Adds the City of Charlottesville to the list of localities that, under current law, are authorized to impose an additional local sales and use tax at a rate not to exceed one percent, with the revenue used only for capital projects for the construction or renovation of schools.

SB 37 - Norment - Sales tax; authorizes additional local tax for constructing, etc., schools in Isle of Wight County

Adds Isle of Wight County to the list of localities that, under current law, are authorized to impose an extra one percent local sales tax. Revenue from the tax may be used only for constructing or renovating schools.

SB 298 - Deeds - Additional local sales and use tax to support schools.

Adds the City of Charlottesville to the list of localities that, under current law, are authorized to impose an additional local sales and use tax at a rate not to exceed one percent, with the revenue used only for capital projects for the construction or renovation of schools.

Overtime

Delegate Byron and Senator Stuart have introduced bills that will correct the issues caused by the Virginia Overtime Wage Act, passed last year. These bills will import all the exemptions on the from the Fair Labor Standards Act (FLSA) into state law, as was intended when the original legislation passed in 2021. The legislation states that, for purposes of the Virginia Overtime Wage Act, the term “employee” does not include certain people excluded from the definition of “employee” under FLSA and that the employer may assert an exemption to the overtime requirement of the Virginia Overtime Wage Act for employees who meet certain exemptions in FLSA.

HB 1143 - Byron - Virginia Overtime Wage Act.

Provides that for the purposes of the Virginia Overtime Wage Act, the term "employee" does not include certain persons excluded from the definition of "employee" under the federal Fair Labor Standards Act (the federal act). The bill provides that an employer may assert an exemption to the overtime requirement of the Virginia Overtime Wage Act for employees who meet certain exemptions set forth in the federal act. The bill also provides that a public agency, as defined in the federal act, may provide an employee compensatory time off in lieu of overtime compensation, in accordance with the federal act.

SB 365 - Stuart - Virginia Overtime Wage Act.

Provides that for the purposes of the Virginia Overtime Wage Act, the term "employee" does not include certain persons excluded from the definition of "employee" under the federal Fair Labor Standards Act (the federal act). The bill provides that an employer may assert an exemption to the overtime requirement of the Virginia Overtime Wage Act for employees who meet certain exemptions set forth in the federal act. The bill also provides that a public agency, as defined in the federal act, may provide an employee compensatory time off in lieu of overtime compensation, in accordance with the federal act.

HB 1017 - Guzman - Overtime; compensable hours worked; compensatory time.

Defines compensable hours worked, for the purposes of the Virginia Overtime Wage Act, as the amount of time an employee is on duty or at a prescribed place of work and any time an employee is suffered or permitted to work. The bill states that such time shall include work performed at home, travel time, waiting time, and training and probationary periods. Under the bill, an employee may elect, during any probationary period of employment, to receive compensatory time in lieu of overtime pay. As used in the bill, compensatory time is the time an employee works behind his regular schedule that is authorized by the employee's employer to be used as paid time off.

Paid Leave

Several pieces of legislation have been introduced on the topic of paid leave that mandate paid leave for employers. However, the legislation introduced by Delegate Byron and Senator Favola creates a class of insurance for family leave. This policy would be available for employers to provide for employees as a part of their benefit program if they so choose, but it would not be mandated. This is an option for businesses that cannot afford to offer a robust paid family leave program individually, but would like to be able to provide such benefits for their employees.

HB 851 - Reid - Paid sick leave; penalty; state tax deduction.

Requires employers, as defined in the bill, to provide 40 hours of paid sick leave, prorated to reflect the average number of hours worked per week by each employee, as defined in the bill, in the previous 12 months, for all existing eligible employees and eligible employees that have been employed for at least 12 months. For eligible employees who have been employed for less than 12 months, employers must provide 20 to 40 hours of paid sick leave, prorated to reflect the expected number of hours worked per week by each employee, as determined by the employer. Employers with at least 25 but not more than 49 full-time employees receive a nonrefundable state tax deduction equivalent to 120 percent of the value of any paid sick leave provided by an employer to an employee.
Employers with existing paid sick leave policies providing at least 40 hours per year of paid sick leave are exempt from the requirements of the bill. The bill allows employers to request a hardship waiver from the Department of Labor and Industry for certain circumstances and requires employers to provide a written notice of information related to paid sick leave to each employee at the commencement of employment or by January 1, 2023. The bill requires that sick leave be available for any eligible employee to use at the commencement of employment and provides that paid sick leave may be used (i) for an employee's mental or physical illness, injury, or health condition, an employee's need for medical diagnosis, care, or treatment of a mental or physical illness, injury, or health condition, or an employee's need for preventive medical care or (ii) to provide care to a family member under similar circumstances.
The law prohibits employers from taking certain retaliatory actions against employees related to paid sick leave, and the bill authorizes the Department, in the case of a knowing violation, to subject an employer to a penalty not to exceed $150 for the first violation, $300 for the second violation, and $500 for each successive violation, if the second or successive violation occurs within two years of the previous violation. The Commissioner of Labor and Industry may institute proceedings on behalf of an employee to enforce compliance with the bill and to collect specified amounts from the employer, which shall be awarded to the employee.
Many of the provisions of the bill currently apply to certain home health workers. The bill has a delayed effective date of January 1, 2023.

HB 1156 - Byron - Private family leave insurance.

Establishes family leave insurance as a class of insurance. The bill defines " family leave insurance" as an insurance policy issued to an employer related to a benefit program provided to an employee to pay for the employee's income loss due to (i) the birth of a child or adoption of a child by the employee; (ii) placement of a child with the employee for foster care; (iii) care of a family member of the employee who has a serious health condition; or (iv) circumstances arising out of the fact that the employee's family member who is a service member is on active duty or has been notified of an impending call or order to active duty. Under the bill, family leave coverage may be written as an amendment to a group disability income policy, included in a group disability income policy, or written as a separate group policy purchased by an employer. The bill prohibits delivery or issue for delivery of a family leave insurance policy unless a copy of the form and the rate manual showing rates, rules, and classification of risks have been filed with the State Corporation Commission. The bill prohibits an individual certificate and enrollment form from being used in connection with a group family leave insurance policy unless the form for the certificate and enrollment form have been filed with the Commission. The bill provides that "life and annuities insurance agent" means an agent licensed in the Commonwealth to sell, solicit, or negotiate, among other types of insurance, family leave insurance, on behalf of insurers licensed in the Commonwealth.

HB 1160 - Mundon King - Paid sick leave; health care providers and grocery store workers.

Requires employers to provide paid sick leave to health care providers, grocery store workers, and home health workers who provide agency-directed services. Under current law, employers are only required to provide paid sick leave to home health workers who provide consumer-directed services. The bill removes requirements that workers work on average at least 20 hours per week or 90 hours per month to be eligible for paid sick leave. Additionally the bill provides that certain health care providers may waive their right to accrue and use paid sick leave and provides an exemption for certain other health care providers.

SB 1 - Boysko - Paid family and medical leave program; Virginia Employment Commission required to establish.

Requires the Virginia Employment Commission to establish and administer a paid family and medical leave program with benefits beginning January 1, 2025. Under the program, benefits are paid to eligible employees for family and medical leave. Funding for the program is provided through premiums assessed to employers and employees beginning in 2024. The amount of a benefit is 80 percent of the employee's average weekly wage, not to exceed 80 percent of the state weekly wage, which amount is required to be adjusted annually to reflect changes in the statewide average weekly wage. The measure caps the duration of paid leave at 12 weeks in any application year. The bill provides self-employed individuals the option of participating in the program.

SB 15 - Favola - Insurance; paid family leave.

Establishes paid family leave as a class of insurance. The bill defines "paid family leave insurance" as an insurance policy issued to an employer related to a benefit program provided to an employee to pay for the employee's income loss due to (i) the birth of a child or adoption of a child by the employee; (ii) placement of a child with the employee for foster care; (iii) care of a family member of the employee who has a serious health condition; or (iv) circumstances arising out of the fact that the employee's family member is on covered active duty or has been notified of an impending call or order to covered active duty in the Armed Forces of the United States. Under the bill, paid family leave coverage may be written as an amendment to a group disability income policy, included in a group disability income policy, or written as a separate group policy purchased by an employer.

SB 352 - Surovell - Paid sick leave; health care providers and grocery store workers.

Requires employers to provide paid sick leave to health care providers, grocery store workers, and home health workers who provide agency-directed services. Under current law, employers are only required to provide paid sick leave to home health workers who provide consumer-directed services. The bill removes requirements that workers work on average at least 20 hours per week or 90 hours per month to be eligible for paid sick leave. Additionally the bill provides that certain health care providers may waive their right to accrue and use paid sick leave and provides an exemption for certain other health care providers.

Tax Conformity/Corporate and Individual Tax Rates/ PPP and Other COVID-19 Related Loans Deductibility

HB 106 - McNamara - Income tax, state; rolling conformity, report.

Provides that, beginning with taxable year 2022, Virginia shall generally conform to federal tax laws on a rolling basis, meaning that Virginia tax laws incorporate changes to the Internal Revenue Code as soon as Congress enacts them. However, the bill provides that Virginia shall not conform to (i) any changes in a single act of Congress with an impact of more than 0.3 percent on revenues in the year in which the amendment was enacted or any of the next four years and (ii) all changes enacted by Congress during the taxable year if their aggregate impact is more than 0.6 percent on the revenues for that year or any of the next four years.

HB 224 - Coyner - Income tax, corporate; filing status for tax returns of affiliated corporations.

Provides that, for taxable years 2023 and 2024, certain affiliated corporations may elect to switch to or from consolidated corporate income tax return filing status under certain conditions, including the requirement that the affiliated group filed on the same basis for the preceding 20 years. The option would be available only to a group with at least one affiliate that is a bank exempt from filing a Virginia corporate income tax return. Current law requires a group of corporations to apply to the Tax Commissioner for permission to change the basis of the type of return filed and to meet certain specified requirements in order for permission to be granted

HB 273 - McNamara - Income tax, state; subtractions and deductions related to Paycheck Protection Program loans.

Provides that certain income tax subtractions and deductions for business expenses funded by federal Paycheck Protection Program loans and for grant funds received through the Rebuild Virginia program shall be available for taxable year 2019 and shall not be subject to any limit for taxable years 2019 and 2020. Under current law, such subtractions and deductions are available only for taxable year 2020 and are subject to a limit of $100,000. The effect of making such subtractions and deductions available for taxable year 2019 would be to allow certain taxpayers whose fiscal year does not match the calendar year to claim such subtractions and deductions.

HB 295 - McNamara - Income tax, corporate; reduces tax from its current rate.

Reduces the corporate income tax from its current rate of six percent to five percent in taxable year 2022, four percent in taxable year 2023, three percent in taxable year 2024, and two percent in taxable year 2025 and subsequent years.

HB 332 - Head - Income tax, state and corporate; credit for small businesses.

Provides, in taxable year 2022, an individual or corporate income tax credit, as applicable for an eligible small business, defined in the bill as a (i) (a) pass-through entity that employs fewer than 50 employees and that has no more than $10 million in gross receipts during such taxable year or (b) self-employed individual or (ii) corporation that is at least 51 percent independently owned by one or more United States citizens or legal resident aliens, employs fewer than 50 employees together with affiliates, and has no more than $10 million in gross receipts during the taxable year, and where the individual business owners must control both the management and daily operations of the business. The individual income tax credit is equal to the amount of Virginia income tax owed on up to $250,000 of personal income during such taxable year and the credit for a corporation equals the amount of Virginia income tax owed during such taxable year on up to $250,000 of the amount that is not deductible when computing federal tax due to Virginia's deconformity from certain provisions of the federal Consolidated Appropriations Act of 2020. The credit is subject to an aggregate cap of $75 million.

HB 348 - Watts - Income tax, corporate; tax returns of affiliated corporations.

Decreases from 20 years to 12 years the time period for which an affiliated group of corporations must file on the same basis before it may apply to the Tax Commissioner for permission to change the basis of the type of return filed (i) from consolidated to separate or (ii) from separate or combined to consolidated.

HB 472 - McNamara - Income tax, state; increases standard deduction.

Increases the standard deduction, starting with taxable year 2022, from $4,500 to $9,000 for single filers and from $9,000 to $18,000 for married filers (one-half of such amount in the case of a married individual filing a separate return). The increase would remain in effect for taxable years 2026 and after, when, under current law, the standard deduction is scheduled to be reduced to $3,000 for single filers and to $6,000 for married filers.

HB 1003 - Byron - Internal Revenue Code; conformity of the Commonwealth's taxation system.

Advances Virginia's date of conformity with the Internal Revenue Code from December 31, 2020, to December 31, 2021. The bill also deconforms from provisions of the (i) federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) related to the net operating loss limitation and carryback, a loss limitation applicable to taxpayers other than corporations, the limitation on business interest, and certain loan forgiveness and other business financial assistance and (ii) federal American Rescue Plan Act related to restaurant revitalization grants and emergency injury disaster loans received for taxable years beginning before January 1, 2021. The bill contains an emergency clause.

SB 7 - Petersen - Income tax, state; Virginia's standard deduction equivalent to federal standard deduction.

Provides that for taxable years beginning on and after January 1, 2022, Virginia's standard deduction shall be in an amount equivalent to the federal standard deduction.

SB 11 - Suetterlein - Income tax, state; increases standard deduction for single and married filers.

Increases the standard deduction for taxable years 2022 through 2025 from $4,500 to $9,000 for single filers and from $9,000 to $18,000 for married filers (one-half of such amount in the case of a married individual filing a separate return). As provided under current law, starting with taxable year 2026, the standard deduction will decrease to $3,000 for single filers and to $6,000 for married filers.

SB 94 - Howell - Internal Revenue Code; conformity of the Commonwealth's taxation system.

Advances Virginia's date of conformity with the Internal Revenue Code from December 31, 2020, to December 31, 2021. The bill also deconforms from provisions of the (i) federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) related to the net operating loss limitation and carryback, a loss limitation applicable to taxpayers other than corporations, the limitation on business interest, and certain loan forgiveness and other business financial assistance and (ii) federal American Rescue Plan Act related to restaurant revitalization grants and emergency injury disaster loans received for taxable years beginning before January 1, 2021. The bill contains an emergency clause.

SB 288 - Ebbin - Virginia taxable income; corporations; deductions; business interest.

Increases from 20 percent to 60 percent the Virginia individual and corporate income tax deduction for business interest disallowed as a deduction under § 163(j) of the Internal Revenue Code for taxable years beginning on and after January 1, 2022.

SB 540 - Peake - Income tax, state and corporate; credit for small businesses.

Provides, in taxable year 2022, an individual or corporate income tax credit, as applicable for an eligible small business, defined in the bill as a (i) (a) pass-through entity that employs fewer than 50 employees and that has no more than $10 million in gross receipts during such taxable year or (b) self-employed individual or (ii) corporation that is at least 51 percent independently owned by one or more United States citizens or legal resident aliens, employs fewer than 50 employees together with affiliates, and has no more than $10 million in gross receipts during the taxable year, and where the individual business owners must control both the management and daily operations of the business. The individual income tax credit is equal to the amount of Virginia income tax owed on up to $250,000 of personal income during such taxable year and the credit for a corporation equals the amount of Virginia income tax owed during such taxable year on up to $250,000 of the amount that is not deductible when computing federal tax due to Virginia's deconformity from certain provisions of the federal Consolidated Appropriations Act of 2020. The credit is subject to an aggregate cap of $75 million.

SB 560 - Norment - Income tax, state; increases standard deduction.

Increases the standard deduction, starting with taxable year 2022, from $4,500 to $9,000 for single filers and from $9,000 to $18,000 for married filers (one-half of such amount in the case of a married individual filing a separate return). The increase would remain in effect for taxable years 2026 and after, when, under current law, the standard deduction is scheduled to be reduced to $3,000 for single filers and to $6,000 for married filers.

SB 579 - Hanger - Income tax refunds for individuals or married persons filing a joint return.

Provides an income tax refund of up to $300 for individuals and up to $600 for married persons filing a joint return for taxable year 2021. The bill provides that the refund shall not exceed the taxpayer's tax liability.

SB 583 - Newman - Conformity of the Commonwealth's taxation system with the Internal Revenue Code.

Advances Virginia's date of conformity with the Internal Revenue Code from December 31, 2020, to December 31, 2021. The bill also deconforms from provisions of the (i) federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act) related to the net operating loss limitation and carryback, a loss limitation applicable to taxpayers other than corporations, the limitation on business interest, and certain loan forgiveness and other business financial assistance and (ii) federal American Rescue Plan Act related to restaurant revitalization grants and emergency injury disaster loans received for taxable years beginning before January 1, 2021. The bill also increases from $100,000 to $1 million the maximum individual and corporate income tax deduction or subtraction, as applicable, for Rebuild Virginia grants and certain amounts related to Paycheck Protection Program loans for taxable year 2020. The bill contains an emergency clause

Other Tax Issues

HB 7 - Ware - Transient occupancy tax; supporting documentation.

Requires accommodations providers to submit certain supporting documentation, upon request by a locality, when remitting transient occupancy taxes collected.

HB 75 - Ware - Localities; restricts authority to impose transient occupancy tax at rate that exceeds five percent.

Restricts localities from imposing a transient occupancy tax at a rate that exceeds five percent and provides that any tax revenues from a rate of greater than two percent but less than five percent shall be spent solely for tourism-related and travel-related purposes. The bill also lowers the amount of food and beverage tax that counties can impose from six percent to a total of four percent. Under the bill, a county is able to impose a food and beverage tax at up to two percent without restriction, but that would require approval via a referendum in order to impose the tax at four percent.

HB 152 - March - Sales and use tax; exemption for portion of payment card processing fees.

Provides a sales and use tax exemption for the portion of any transaction that is a payment card processing fee, defined in the bill.The bill also provides such an exemption from local meals taxes.

HB 267 - McNamara - Taxes, local; surplus revenues.

Grants localities permissive authority to return surplus personal property tax revenues to taxpayers. Under current law, localities may return only surplus real property tax revenues.

HB 274 - McNamara - Sales and transient occupancy taxes; broadens definition of accommodations intermediaries.

Broadens the definition of accommodations intermediary for purposes of collection of sales tax by accommodations intermediaries.

HB 518 - Head - Sales and transient occupancy taxes; accommodations intermediaries.

Changes the process by which sales and transient occupancy taxes are collected from accommodations sales involving accommodations intermediaries. Under current law, accommodations intermediaries remit these taxes to the Department of Taxation or a locality, or a hotel, depending on the circumstances. The bill requires accommodations intermediaries to collect such taxes and remit them to the Department of Taxation or a locality, as applicable. The bill also provides that in a transaction involving multiple parties that may be considered accommodations intermediaries, such parties may agree that one party shall be responsible for collecting and remitting the taxes. In such event, the party agreeing to collect and remit such taxes shall be the sole party liable for the tax.
The bill also broadens the definition of accommodations intermediary. The bill directs the Department of Taxation to publish guidelines on implementation of the bill by August 1, 2022. The substantive provisions of the bill have a delayed effective date of October 1, 2022.

HB 551 - Scott, D.L. - Retail Sales and Use Tax; exemption for medicine and drugs purchased by veterinarians.

Exempts veterinarians from sales and use tax on the purchase or prescription of medicines and drugs that are administered to patients within a veterinarian-client-patient relationship. The bill repeals provisions of current law which provide that a veterinarian dispensing or selling medicines or drugs on prescription shall be deemed to be the user or consumer of all such medicines and drugs.

HB 1076 - McNamara - Local cigarette tax; unsold inventory.

Requires any locality that increases its cigarette tax rate to allow, for one calendar year after the increase, a person with unsold inventory to pay the tax increase on the unsold inventory by filing a return, rather than requiring the use of a stamp or meter impression. The bill imposes a duty on regional cigarette tax boards to effectuate the policy.

SB 25 - Ruff - Cigarette tax, local; tax increase payment on unsold inventory.

Requires any locality that increases its cigarette tax rate to allow, for one calendar year after the increase, a person with unsold inventory to pay the tax increase on the unsold inventory by filing a return, rather than requiring the use of a stamp or meter impression. The bill imposes a duty on regional cigarette tax boards to effectuate the policy

SB 432 - Dunnavant - Sales tax; taxable accommodations.

Provides that only accommodations furnished to transients for overnight sleeping are subject to sales tax. The provisions of the bill are retroactive to January 1, 2018.

SB 517 - Lucas - Retail Sales and Use Tax; exemption for medicine and drugs purchased by veterinarians.

Exempts veterinarians from sales and use tax on the purchase or prescription of medicines and drugs that are administered to patients within a veterinarian-client-patient relationship. The bill repeals provisions of current law which provide that a veterinarian dispensing or selling medicines or drugs on prescription shall be deemed to be the user or consumer of all such medicines and drugs.

SB 553 - Marsden - Sales and transient occupancy taxes; broadens definition of accommodations intermediaries.

Broadens the definition of accommodations intermediary for purposes of collection of sales tax by accommodations intermediaries.

DRAM Shop Liability

HB 984 - Runion - Liability for sale of alcohol or marijuana product to an underage person.

Creates a cause of action against an alcoholic beverage control retail licensee or cannabis control retail licensee who sells alcohol or a marijuana product to an underage person if the consumption of the alcohol or marijuana product caused or contributed to an injury to person or property while the underage person operated a motor vehicle. The provisions of this act related to the sale of marijuana products have a delayed effective date of January 1, 2024.

SB 230 - Hanger - Liability for sale of alcohol to an impaired customer; injury to another person.

Creates a cause of action against an alcoholic beverage control retail licensee who sells alcohol to a customer who subsequently injures another by driving while impaired if the consumption of the alcohol caused or contributed to an injury to person or property while the customer operated a motor vehicle.

SB 555 - Obenshain - Liability for sale of alcohol to an underage person.

Creates a cause of action against an alcoholic beverage control retail licensee who sells alcohol to an underage person who was visibly intoxicated if the consumption of the alcohol caused or contributed to an injury to person or property while the underage person operated a motor vehicle. The plaintiff must prove such negligence by a clear and convincing evidence standard

Retail Small Business Grant Program and Fund

HB 476 - Murphy - Retail Small Business Grant Program and Fund.

Establishes the Retail Small Business Grant Program and Fund to support existing Virginia small businesses, attract new businesses, increase the Commonwealth's tax base, create new job opportunities for Virginia residents, and enhance commercial activity in Virginia. The bill provides that an eligible Virginia small business, defined in the bill, is eligible for grants of up to $50,000. The total amount of grants awarded in a fiscal year is capped at $10 million.

Mandatory Opt-Out for Automatic Renewal

HB 78 - Davis - Automatic renewal or continuous service offer to consumer; cancellation and online opt-out.

Requires that the supplier of automatic renewals or continuous service offers that include a free trial notify the consumer of the automatic renewal seven days prior to expiration of the free trial and obtain the consumer's affirmative consent to the automatic renewal beyond the trial period. The bill also requires that suppliers of automatic renewals or continuous service offers through an online website must make available a conspicuous online option to cancel a recurring purchase of a good or service within the website by which such purchase was made.

Private Cause of Action Against Employers

HB 510 - March - Employer medical mandates; cause of action.

Provides for a cause of action for any employee that suffers any adverse reaction or injury sustained by reason of a medical mandate, defined in the bill, issued by the employer as a condition of employment. The bill provides that in any such action the employee may recover compensatory damages, punitive damages, and reasonable attorney fees and costs.

Misclassification of Workers

HB 529 - Batten - Labor and employment; misclassification of workers.

Establishes criteria for classifying the difference between employees and independent contractors based on either (i) the common law 20-factor test established in Internal Revenue Service Ruling 87-41, (ii) an applicable determination of the Internal Revenue Service, or (iii) satisfaction of specific criteria for classifying a person as an independent contractor as described in the bill.

Privacy

HB 381 - Davis - Consumer Data Protection Act; data deletion request.

Authorizes a controller of personal data to treat a consumer request to delete data obtained by a third party about a consumer as a request to opt the consumer out of the processing of that data for (i) targeted advertising, (ii) the sale of personal data, or (iii) profiling in furtherance of decisions that produce legal or similarly significant effects concerning the consumer.

HB 714 - Hayes - Consumer Data Protection Act; enforcement, abolishes Consumer Privacy Fund.

Authorizes the Attorney General to pursue actual damages to consumers to the extent they exist if a controller or processor of the personal data of Virginians continues to violate the Consumer Data Protection Act following a 30-day cure period offered by the Attorney General or breaches an express written statement provided to the Attorney General. Political organizations are classified as nonprofit organizations and thus exempt from the Act. The bill specifies that the Attorney General may deem whether a cure under the provisions of the Act is possible for consumers. In addition, the bill abolishes the Consumer Privacy Fund and all civil penalties, expenses, and attorney fees collected from enforcement of the Act shall be deposited into the Regulatory, Consumer Advocacy, Litigation, and Enforcement Revolving Trust Fund.

SB 393 - Ebbin - Consumer Data Protection Act; data deletion request.

Authorizes a controller of personal data to treat a consumer request to delete data obtained by a third party about a consumer as a request to opt the consumer out of the processing of that data for (i) targeted advertising, (ii) the sale of personal data, or (iii) profiling in furtherance of decisions that produce legal or similarly significant effects concerning the consumer.

SB 534 - Marsden - Consumer Data Protection Act; enforcement, abolishes Consumer Privacy Fund.

Authorizes the Attorney General to pursue actual damages to consumers to the extent they exist if a controller or processor of the personal data of Virginians continues to violate the Consumer Data Protection Act following a 30-day cure period offered by the Attorney General or breaches an express written statement provided to the Attorney General. Political organizations are classified as nonprofit organizations and thus exempt from the Act. The bill specifies that the Attorney General may deem whether a cure under the provisions of the Act is possible for consumers. In addition, the bill abolishes the Consumer Privacy Fund and all civil penalties, expenses, and attorney fees collected from enforcement of the Act shall be deposited into the Regulatory, Consumer Advocacy, Litigation, and Enforcement Revolving Trust Fund.

SB 584 - Norment - Consumer Data Protection Act; personal data obtained from source other than the consumer.

Provides that if a controller has obtained personal data about a consumer from a source other than the consumer, the controller may comply with such consumer's request to delete such personal data by opting the consumer out of the processing of such personal data for targeted advertising, sale, or profiling. The provisions of the bill become effective on January 1, 2023.

Larceny

HB 107 - McGuire - Larceny and certain property crimes; penalties.

Decreases from $1,000 to $500 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 decreases the threshold by the same amount for the classification of certain property crimes. The bill also provides that a person convicted of petit larceny, which is punishable as a Class 1 misdemeanor, shall be subject to a mandatory minimum term of confinement of 10 days in jail if the larceny was of a package delivered to a residence.
The bill also makes it a Class 6 felony for a person to commit larceny of a catalytic converter from a motor vehicle, regardless of the converter's value. The bill makes it a Class 6 felony for a person to willfully break, injure, tamper with, or remove any part or parts of any vehicle, aircraft, boat, or vessel for the purpose of injuring, defacing, or destroying said vehicle, aircraft, boat, or vessel, or temporarily or permanently preventing its useful operation, or for any purpose against the will or without the consent of the owner, or to in any other manner willfully or maliciously interfere with or prevent the running or operation of such vehicle, aircraft, boat, or vessel, when such violation causes damage to such vehicle, aircraft, boat, or vessel of $500 or more. Current law makes such violation a Class 1 misdemeanor with no limit on the amount of damage. Under the bill, the penalty for damage of less than $500 remains a Class 1 misdemeanor.

HB 247 - Ransone - Grand larceny and certain property crimes; decreases threshold amount, penalty.

Decreases from $1,000 to $500 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 decreases the threshold by the same amount for the classification of certain property crimes.

Limited Liability Companies

HB 309 - Rasoul - Limited liability companies; prepayment of annual registration fees.

Permits domestic and foreign limited liability companies to prepay annual registration fees for two or three years. Under the bill, a domestic or foreign limited liability company must make the election to prepay its annual registration fees before its annual registration fee would otherwise be due and seek approval from the State Corporation Commission to engage in prepayment for two or three years. The bill provides that such optional prepayment does not apply to the initial annual registration fees assessed against a limited liability company that is newly formed or recently converted from another entity. The bill requires that, if applicable, the Commission provide notice of this prepayment option to a foreign or domestic limited liability company that has failed to pay its annual registration fee as a method of avoiding future delinquencies.

Short-Term Rental

SB 602 - DeSteph - Short-term rental properties; definition; locality requirements and restrictions.

Prohibits, except as provided, localities from (i) requiring or allowing the approval of neighbors or the neighborhood for the operation of short-term rental properties; (ii) imposing requirements or restrictions that exceed those of regular properties, including special parking and occupancy restrictions; or (iii) restricting short-term rentals by geographic location within the locality by means other than the normal general land use and zoning authority. The bill expands the current definition of short-term rental to include any house provided for such purpose.

ABC

HB 300 - Freitas - Alcoholic beverage control; distiller licenses to allow Internet orders and shipments.

Allows the Virginia Alcoholic Beverage Control Authority to include in its agency agreements with licensed distillers provisions that allow distillers to sell spirits and low alcohol beverage coolers through Internet orders and ship such orders to consumers and licensees within the Commonwealth. The bill imposes certain quantity, carriage, transaction, and labeling requirements on such sales and shipments.

HB 328 - Freitas - Alcoholic beverage control; retail privatization of government stores.

Provides for the issuance of a "package store" license to authorize the retail sale of alcoholic beverages for off-premises consumption. The bill provides that persons holding a retail off-premises wine and beer license are eligible to obtain a package store license. The bill also requires the Board of Directors of the Virginia Alcoholic Beverage Control Authority (the Board) to dispose of all real estate used as government stores and to terminate leased property upon which the Board has operated a government store. The bill requires the Board to complete an implementation study by January 1, 2023, on how it will privatize government stores. The bill directs the Board to adopt emergency regulations to implement the provisions of the bill. The bill contains numerous technical amendments.

HB 426 - Bulova - Alcoholic beverage control; delivery of alcoholic beverages, third-party delivery license.

Creates a third-party delivery license that authorizes the licensee to deliver alcoholic beverages purchased by consumers from other retail licensees. The bill establishes conditions for the issuance of third-party delivery licenses, imposes eligibility requirements for delivery personnel, and sets forth requirements for a delivery to be made by such delivery personnel. The bill imposes a $2,500 fine for first-time violations of the delivery requirements and a $5,000 fine for second and subsequent violations. The bill also establishes container requirements for certain alcoholic beverages sold for off-premises consumption or delivery. The bill requires that such alcoholic beverages, if not contained in the manufacturer's original sealed container, (i) be enclosed in a container that has no straw holes or other openings and is sealed in a manner that allows a person to readily discern whether the container has been opened or tampered with; (ii) display the name of the licensee from which the alcoholic beverages were purchased; (iii) be clearly marked with the phrase "contains alcoholic beverages"; (iv) have a maximum volume of 16 ounces per beverage for certain beverages; and (v) be stored in the trunk of the vehicle, in an area that is rear of the driver's seat, in a locked container or compartment or, in the case of delivery by bicycle, in a compartment behind the bicyclist during delivery. The bill also excludes from the rebuttable presumption in current law that a person is consuming alcohol while driving any person who is delivering an alcoholic beverage in accordance with the provisions of the bill. The bill directs the Virginia Alcoholic Beverage Control Authority to collect data regarding the compliance of third-party delivery licensees with the provisions of the bill and report such data to the Chairmen of the House Committee on General Laws and the Senate Committee on Rehabilitation and Social Services by November 1, 2023. The bill extends from July 1, 2022, to July 1, 2024, the sunset on prior legislation that allowed certain licensees to sell mixed-beverages for off-premises consumption.

HB 455 - Knight - Casino gaming; sale and consumption of alcoholic beverages in establishments, etc.

Authorizes the Board of Directors of the Virginia Alcoholic Beverage Control Authority (the Board) to issue a mixed beverage casino license. The issuance of such license is limited to a casino gaming establishment owned by a casino operator licensed under Virginia law. The bill provides for the sale and service of alcoholic beverages for on-premises consumption in areas designated by the Board during all hours of operation of the casino gaming establishment and authorizes the licensee to provide gifts of alcoholic beverages to players and establish loyalty or reward credit programs under certain conditions. In addition, the bill provides that a mixed beverage restaurant licensee located on the premises of a casino gaming establishment may sell alcoholic beverages for on-premises consumption on the licensed premises of the restaurant during all hours of operation of the establishment and that any alcoholic beverages purchased from a restaurant on the premises of a casino gaming establishment may be removed from the premises of the licensee and possessed and consumed in areas of the establishment as designated by the Board. Under the bill, a mixed beverage restaurant licensee located on the premises of and operated by a casino gaming establishment holding a valid license issued by the Board prior to July 1, 2022, is authorized to operate with the privileges of a mixed beverage casino license as created by the bill until the casino gaming establishment is issued a mixed beverage casino license or July 1, 2023, whichever occurs first. The Board may promulgate any regulations that it deems necessary for implementing the provisions of the bill no later than October 1, 2022. The initial adoption of regulations are exempt from the Administrative Process Act, except that the Board shall provide an opportunity for public comment on the regulations prior to adoption. The bill also (i) revises the definition of "gross receipts" to include electronic credits and electronic cash and to exclude the cash value of promotions or credits under certain conditions and uncollectable counter checks; (ii) defines and authorizes the use of counter checks and prepaid access instruments; (iii) authorizes wagers to be conducted using electronic credits and electronic cash; and (iv) excludes conviction of misdemeanor possession of marijuana as a disqualifier for the issuance of a service permit by the Virginia Lottery.

SB 65 - Ruff - Alcoholic beverage control; distiller licenses to allow Internet orders and shipments.

Allows the Virginia Alcoholic Beverage Control Authority to include in its agency agreements with licensed distillers provisions that allow distillers to sell spirits and low alcohol beverage coolers through Internet orders and ship such orders to consumers and licensees within the Commonwealth. The bill imposes certain quantity, carriage, transaction, and labeling requirements on such sales and shipments.

SB 254 - Bell - Alcoholic beverage control; delivery of alcoholic beverages, third-party delivery license.

Creates a third-party delivery license that authorizes the licensee to deliver alcoholic beverages purchased by consumers from other retail licensees. The bill establishes conditions for the issuance of third-party delivery licenses, imposes eligibility requirements for delivery personnel, and sets forth requirements for a delivery to be made by such delivery personnel. The bill imposes a $2,500 fine for first-time violations of the delivery requirements and a $5,000 fine for second and subsequent violations. The bill also establishes container requirements for certain alcoholic beverages sold for off-premises consumption or delivery. The bill requires that such alcoholic beverages, if not contained in the manufacturer's original sealed container, (i) be enclosed in a container that has no straw holes or other openings and is sealed in a manner that allows a person to readily discern whether the container has been opened or tampered with; (ii) display the name of the licensee from which the alcoholic beverages were purchased; (iii) be clearly marked with the phrase "contains alcoholic beverages"; (iv) have a maximum volume of 16 ounces per beverage for certain beverages; and (v) be stored in the trunk of the vehicle, in an area that is rear of the driver's seat, in a locked container or compartment or, in the case of delivery by bicycle, in a compartment behind the bicyclist during delivery. The bill also excludes from the rebuttable presumption in current law that a person is consuming alcohol while driving any person who is delivering an alcoholic beverage in accordance with the provisions of the bill. The bill directs the Virginia Alcoholic Beverage Control Authority to collect data regarding the compliance of third-party delivery licensees with the provisions of the bill and report such data to the Chairmen of the House Committee on General Laws and the Senate Committee on Rehabilitation and Social Services by November 1, 2023. The bill extends from July 1, 2022, to July 1, 2024, the sunset on prior legislation that allowed certain licensees to sell mixed-beverages for off-premises consumption.

SB 519 - Lucas - Casino gaming; sale and consumption of alcoholic beverages in establishments, etc.

Authorizes the Board of Directors of the Virginia Alcoholic Beverage Control Authority (the Board) to issue a mixed beverage casino license. The issuance of such license is limited to a casino gaming establishment owned by a casino operator licensed under Virginia law. The bill provides for the sale and service of alcoholic beverages for on-premises consumption in areas designated by the Board during all hours of operation of the casino gaming establishment and authorizes the licensee to provide gifts of alcoholic beverages to players and establish loyalty or reward credit programs under certain conditions. In addition, the bill provides that a mixed beverage restaurant licensee located on the premises of a casino gaming establishment may sell alcoholic beverages for on-premises consumption on the licensed premises of the restaurant during all hours of operation of the establishment and that any alcoholic beverages purchased from a restaurant on the premises of a casino gaming establishment may be removed from the premises of the licensee and possessed and consumed in areas of the establishment as designated by the Board. Under the bill, a mixed beverage restaurant licensee located on the premises of and operated by a casino gaming establishment holding a valid license issued by the Board prior to July 1, 2022, is authorized to operate with the privileges of a mixed beverage casino license as created by the bill until the casino gaming establishment is issued a mixed beverage casino license or July 1, 2023, whichever occurs first. The Board may promulgate any regulations that it deems necessary for implementing the provisions of the bill no later than October 1, 2022. The initial adoption of regulations are exempt from the Administrative Process Act, except that the Board shall provide an opportunity for public comment on the regulations prior to adoption. The bill also (i) revises the definition of "gross receipts" to include electronic credits and electronic cash and to exclude the cash value of promotions or credits under certain conditions and uncollectable counter checks; (ii) defines and authorizes the use of counter checks and prepaid access instruments; (iii) authorizes wagers to be conducted using electronic credits and electronic cash; and (iv) excludes conviction of misdemeanor possession of marijuana as a disqualifier for the issuance of a service permit by the Virginia Lottery.

SB 619 - Cosgrove - Alcoholic beverage control; food-to-beverage ratio.

Provides an alternative to the food-to-beverage ratio for mixed beverage restaurant licensees by allowing such licensees to meet applicable food sale requirements by demonstrating at least $10,000 in monthly food sales.

Employer Mandates

HB 757 - Krizek - Employment; anti-harassment training requirement.

Requires each employer with five or more employees, including the Commonwealth and its political subdivisions, to provide training regarding sexual harassment and workplace discrimination by January 1, 2023. The bill includes specific training requirements for supervisory and nonsupervisory employees, seasonal and temporary employees who are hired to work for less than six months, and migrant and seasonal agricultural workers. The training required under the bill must be provided by an educator or human resources professional and must include a method for employees to electronically save a certificate of completion. The bill requires the Department of Labor and Industry to make online training courses available on its website by January 1, 2023.

SB 494 - McClellan - Virginia Human Rights Act; nondiscrimination in employment; definition of employer.

Amends the definition of "employer" to mean a person employing five or more employees, instead of 15 or more employees under current law, for each working day in each of 20 or more calendar weeks in the current or preceding calendar year, and any agent of such person. The bill provides that a person claiming to be aggrieved by an unlawful discriminatory practice may file a written complaint with the Division of Human Rights within two years of the occurrence of the alleged unlawful discriminatory practice and that an aggrieved person who has been provided a notice of his right to file a civil action for such grievance may do so within one year of receiving such notice or within two years after the alleged discriminatory practice occurred, whichever is later. The bill also changes a courts award of reasonable attorney fees and costs to a successful plaintiff from discretionary to mandatory.

SB 244 - Hashmi - Organ donors; unpaid leave; civil penalty.

Requires that an employer that employs 15 or more employees provide eligible employees with (i) up to 60 business days of unpaid organ donation leave in any 12-month period to serve as an organ donor and (ii) up to 30 business days of unpaid organ donation leave in any 12-month period to serve as a bone marrow donor. The bill requires the employer to restore the employee's position following the leave, to continue to provide coverage for the employee under any health benefit plan, and to pay the employee any commission earned prior to the leave. The bill prohibits the employer from taking retaliatory action against the employee for taking organ donation leave. The bill requires the Commissioner of Labor and Industry to enforce its provisions and provides for civil penalties for violations of its requirements.

Unemployment/Workers Compensation

HB 153 - March - Unemployment/workers compensation; testing for the use of nonprescribed controlled substances.

Requires, for an applicant for unemployment benefits for whom the only suitable work available is in an occupation that regularly requires drug testing, the applicant, as a condition of eligibility, to provide the Virginia Employment Commission with the results of a drug test that is negative for the use of a nonprescribed controlled substance. The bill also requires, under the Workers' Compensation Act, in order to determine the cause of a workplace accident that harmed an employee, an employer to require post-accident drug testing for the use of a nonprescribed controlled substance of any employee whose conduct could have contributed to the accident. The bill also prohibits an insurer from providing premium discounts for a drug-free workplace to an employer unless the employer has policies in place requiring such post-accident drug testing.

HB 600 - Hudson - Unemployment compensation; continuation of benefits; repayment of overpayments.

Makes permanent provisions of the Code currently set to expire on July 1, 2022, relating to unemployment compensation. The bill provides that when a claimant has had a determination of initial eligibility for unemployment benefits, as determined by the issuance of compensation or waiting-week credit, payments shall continue, subject to a presumption of continued eligibility, until a determination is made that provides the claimant notice and an opportunity to be heard.

The bill also makes permanent provisions of the Code that require the Virginia Employment Commission to waive the obligation to repay any overpayment if (i) the overpayment was made without fault on the part of the individual receiving benefits and (ii) requiring repayment would be contrary to equity and good conscience. Conditions for when overpayments are considered "without fault on the part of the individual" are outlined in the bill.
The bill further provides that the Commission shall notify each person with an unpaid overpayment of benefits that he may be entitled to a waiver of repayment and provide 30 days to request such a waiver. This applies to outstanding overpayments established for claim weeks commencing on or after March 15, 2020. The bill allows the Commission to suspend or forgo referring any overpayment established since March 15, 2020 to the collections process indefinitely. All costs that result from implementing provisions of this bill shall be incurred by the Unemployment Compensation Fund.

HB 640 - Carr - Unemployment compensation; invalid claims.

Provides that a claim for unemployment benefits that has been determined invalid by the Virginia Employment Commission as a result of the claimant's monetary ineligibility is not eligible for appeal through the Commission's appeals division.

HB 652 - Wampler - Unemployment compensation; notice of hearing prior to discontinuing benefits.

Requires the Virginia Employment Commission to provide claimants with notice and an opportunity to present evidence prior to discontinuing benefits to which a claimant was previously entitled. The bill waives the requirement to repay penalties associated with overpayment for claimants who were awarded state pandemic unemployment assistance between March 12, 2020, and September 1, 2020. The bill directs the Commission to conduct an incarceration check and employment ID check prior to awarding benefits to any individual. The bill contains an emergency clause.

HB 730 - Ward - Workers' compensation; failure to market residual capacity.

Provides that an employee is not barred from receiving workers' compensation benefits due to a failure to market residual work capacity if credible evidence supports that the employee (i) is reasonably unemployable based upon age, education, work history, or medical conditions or (ii) is employable in some capacity and has registered with the Virginia Employment Commission.

HB 1002 - Guzman - Workers' compensation; injuries caused by repetitive and sustained physical stressors.

Provides that, for the purposes of the Virginia Workers' Compensation Act, "occupational disease" includes injuries from conditions resulting from repetitive and sustained physical stressors, including repetitive and sustained motions, exertions, posture stress, contact stresses, vibration, or noise. The bill provides that such injuries are covered under the Act. Such coverage does not require that the injuries occurred over a particular time period under the bill, provided that such a period can be reasonably identified.

HJ 11 - Marshall - Workers' compensation; study on prohibition on charging premiums for bonus pay, vacations, etc.

Requests the Workers' Compensation Commission to study a prohibition on charging workers' compensation premiums on bonus pay, vacation time, and holiday time and consider the economic effect that such prohibition would have on the state. The Workers' Compensation Commission is requested to complete its meetings by December 1, 2022, and submit its findings no later than the first day of the 2023 Regular Session of the General Assembly.

SB 181 - Saslaw - Workers' compensation; presumption as to death or disability from COVID-19, vaccine.

Provides that the presumption that COVID-19 causing the death or disability of certain employees is an occupational disease compensable under the Virginia Workers' Compensation Act does not apply to an individual who fails or refuses to receive a vaccine for the prevention of COVID-19 either approved by or with an Emergency Use Authorization issued by the U.S. Food and Drug Administration, unless the person is immunized or the person's physician determines in writing that the immunization would pose a significant risk to the person's health.

SB 226 - McPike - Workers' compensation; notice to employees.

Requires each employer subject to the Virginia Workers' Compensation Act to provide notice to covered employees of the employees' right to dispute a claim through the Virginia Workers' Compensation Commission. Such notice must include specific text as included in the bill. The bill also provides that an employer who fails to provide such notice may be subject to the civil penalty provisions of the Virginia Workers' Compensation Act.

SB 562 - Saslaw - Workers' compensation; time period for filing claim; certain cancers.

Provides that the time period for filing a workers' compensation claim for certain cancers is two years after a diagnosis of the disease is first communicated to the employee or within 10 years from the date of the last injurious exposure in employment, whichever first occurs. Under current law, such time period is two years after a diagnosis of the disease is first communicated to the employee or within five years from the date of the last injurious exposure in employment, whichever first occurs.

Consumer Protection Act

HB 737 - Krizek - Virginia Consumer Protection Act; certain disclosure in advertising required.

Provides that is a violation of the Virginia Consumer Protection Act for a supplier in connection with a consumer transaction to fail to disclose in any advertisement for goods or services that the provisions of any contract or written agreement associated with the goods or services advertised restrict the consumer's rights in any civil action or right to file a civil action to resolve a dispute that arises in connection with the consumer transaction. The bill provides that such provisions shall be void and unenforceable in any instance where the supplier fails to provide the required notice.

SB 309 - Edwards - Consumer Protection Act; prohibited practices; certain restrictive provisions in contract.

Provides that it is a violation of the Consumer Protection Act for a supplier in connection with a consumer transaction to use any provision in any contract or written agreement that restricts a consumer's right to file a civil action to resolve a dispute that arises in connection with a consumer transaction that does not involve interstate commerce. The bill provides that such provisions are void and unenforceable.

COVID-19

HB 27 - Anderson - COVID-19 vaccination status; mandatory COVID-19 vaccination prohibited, discrimination prohibited.

Prohibits the State Health Commissioner and the Board of Health, the Board of Behavioral Health and Developmental Services, the Department of Health Professions and any regulatory board therein, and the Department of Social Services from requiring any person to undergo vaccination for COVID-19 and prohibits discrimination based on a person's COVID-19 vaccination status with regard to education or public employment and in numerous other contexts.

HB 934 - LaRock - Employer-mandated vaccinations for COVID-19; required exemptions; civil penalties.

Prohibits an employer from requiring its employees to receive a vaccine for the prevention of COVID-19 unless such employer provides individual exemptions that allow an employee to opt out from such requirement on the basis of (i) medical reasons, including pregnancy or anticipated pregnancy; (ii) religious reasons; (iii) immunity from COVID-19; (iv) periodic testing; or (v) the use of employer-provided personal protective equipment. The bill provides requirements for an employee to claim such exemptions. The bill prohibits an employer from discrimination against an employee who claims such an exemption. The bill also provides for civil penalties not to exceed $10,000 by an employer with fewer than 100 employees or $50,000 by an employer with 100 or more employees for violations of the bill's requirements.

SB 189 - Chase - Employer-mandated vaccinations for COVID-19; discrimination prohibited, civil penalties.

Prohibits an employer from requiring its employees to receive a vaccine for the prevention of COVID-19. The bill prohibits an employer from discrimination against an employee because the employee has or has not received a vaccine for the prevention of COVID-19. The bill also provides for civil penalties not to exceed $10,000 by an employer with fewer than 100 employees or $50,000 by an employer with 100 or more employees for each violation of the bill's provisions.

SB 548 - Chase - Virginia Human Rights Act; nondiscrimination in places of public accommodation; COVID-19.

The bill prohibits discrimination in public accommodations on the basis of an individual as having received, received in part, or not received a vaccine for the prevention of COVID-19.

SB 582 - Chase - Virginia Human Rights Act; nondiscrimination in places of public accommodation.

Prohibits discrimination in places of public accommodations including public and private elementary and secondary schools and institutions of higher education and certain private establishments because the individual is or is not wearing a face covering for the purpose of preventing the transmission of COVID-19.

Small Business

SB 128 - Obenshain - Small Business and Supplier Diversity, Department of; redefines "small business."

Redefines "small business" for the purpose of programs for the Department of Small Business and Supplier Diversity and programs for the Virginia Public Procurement Act to allow a cooperative association organized pursuant to Chapter 3 (Cooperative Associations) of Title 13.1 as a nonstock corporation to qualify as a small business if it is at least 51 percent independently controlled by one or more members who are U.S. citizens or legal resident aliens and, together with affiliates, has 250 or fewer employees or average annual gross receipts of $10 million or less averaged over the previous three years.

Product Ban

HB 949 - Tran - Pavement sealants containing coal tar prohibited.

Prohibits the sale and distribution of any pavement sealant that contains coal tar on or after July 1, 2022, except that a retailer may continue to sell any existing inventory that remains in stock on that date. The bill prohibits the use of such sealants beginning July 1, 2023. The bill subjects any person who violates either prohibition to a civil penalty of $250, to be paid into the Virginia Environmental Emergency Response Fund.

Food Delivery Platform

HB 460 - Bennett-Parker - Food delivery platforms; fee transparency.

Requires each agreement between a restaurant and a food delivery platform to disclose all fees charged by the food delivery platform. Prior to confirming an online order, a food delivery platform must clearly display the baseline cost of the food order and any additional fees associated with the order. However, under the bill, a restaurant, operating through an independent ordering system that includes the option of delivery by a food delivery platform may elect to display only the total order cost rather than listing each associated fee.

Tobacco

HB 685 - Hope - Tobacco retail licensing; penalties.

Prohibits any person from selling any tobacco product at retail without first obtaining a license from the Alcoholic Beverage Control Authority (the Authority). The bill prohibits the sale of tobacco products and hemp products intended for smoking from vending machines. The bill imposes civil penalties on licensees for selling tobacco products without a license and for selling tobacco products to persons under age 21. Licenses would be subject to annual renewal and subject to revocation for violations of federal, state, or local laws related to tobacco products. The bill creates the Tobacco Retail Administration Subfund for the purpose of funding the Authority's costs of administering licenses and enforcing laws related to tobacco retail licensing.
The bill updates, for the purpose of the crime of selling or distributing tobacco products to a person younger than 21 years of age, the definition of "tobacco products" by including in such definition products currently defined as nicotine vapor products or alternative nicotine products. The bill also removes provisions prohibiting the attempt to purchase, purchase, or possess tobacco products and hemp products intended for smoking by persons younger than 21 years of age. The bill also removes the exception allowing the sale of tobacco products to active-duty military personnel who are 18 years of age or older.

Permit Issues

HB 837 - Wilt - Food and drink law; permitting requirements.

Requires any food manufacturer, food storage warehouse, and retail food establishment to obtain a permit from the Commissioner of the Department of Agriculture and Consumer Services prior to operating. Any such entity issued a permit would be exempt from any other license, permit, or inspection required for the sale, preparation, or handling of food. The bill requires the Commissioner to notify such entities of the reason for denial of a permit and requires that any denial, suspension, or revocation of a permit be carried out in accordance with the Administrative Process Act.

SB 32 - Marsden - Overweight vehicle permits; increases maximum extension of existing weight limits.

Increases from five percent to 10 percent the maximum extension of existing weight limits authorized by an overweight vehicle permit. The bill retains the limit of 84,000 pounds and the maximum weight limit on interstate highways.

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