VETO SESSION
The 2016 Virginia General Assembly reconvened this Wednesday, April 20, 2016, to review Governor McAuliffe’s proposed amendments and vetoes to legislation from this year’s session.
IMPACTING RETAILERS
House Bill 18
The veto was sustained for Governor McAuliffe’s veto House Bill 18 (HB 18), which allowed local franchisees to maintain management of their employees, rather than turn that control over to the corporate franchisor.
VRF supported HB 18, proposing that the bill supports the best interest of retailers by continuing to allow individual operations to make decisions regarding their employees’ needs and their right as the owner of the franchise to hire or fire their own employees. Governor McAuliffe provided the explanation that the bill would undermine business by exempting franchisors from their obligations to Virginia business.
Budget
During the Veto Session, VRF was successful in removing the Governor’s proposed budget increase, that would have allowed increased audits and investigations on misclassified workers, youth employment inspections, and wage payment claims. It also would have allowed increases in order to issue citations for potential Virginia Occupational Safety and Health (VOSH) Program violations.
VRF opposed these budget increases because of that added regulations, inspections, requirements, and burden for small businesses.
VRF SILENT AUCTIONS
Please consider a donation for our silent auctions, as they provide the VRF Political Action Committee the opportunity to share the retail message with our decision-makers.
Retail Merchants Association | Richmond, VA | May 11
Retail Alliance | Norfolk, VA | December 8
ANNUAL RETAIL ADVOCATES SUMMIT (Washington, D.C., May 24-25)
The Retail Advocates Summit rallies retailers of all sizes, national and local brands, to Washington to advocate for issues that are critical to a thriving retail industry.
Please consider joining the VRF team, Retail Merchants Association members, and Retail Alliance members we take the retail message to our representatives in the US Congress and the US Senate.
Details are available on the NRF website: https://nrf.com/events/retail-advocates-summit-2016
The 2016 Virginia General Assembly adjourned this past Friday evening March 11th, one day ahead of schedule, for the second year in a row. Virginia Retail Federation’s team was present the entire Session to ensure retail’s business positions were represented. The 60-day session included over 3,200 pieces of legislation, with over 100 pieces potentially impacting retailers. The session also included Virginia’s 2-year budget.
THE BUDGET
The budget proposal included many issues of significance:
· education initiatives
· strategic investments in economic development
· healthcare proposals
The most significant for Virginia retailers is the Accelerated Sales Tax (AST) threshold.
VRF worked diligently with Governor McAuliffe’s administration in 2015 to increase the threshold for AST from the current $2.5 million, to $10 million in 2017, and $25 million in 2018. At the end of the day, both chambers supported the AST language and left it in the budget.
Finally, the budget proposed a provision for businesses in 2014 with income of $50 million, or more, in and out of Virginia, to be required to submit tax information using the market-based sourcing model. This model collects the tax in the state where the customer receives the service benefit, rather than in the state that a service is performed. Failure to file this information by June 1, 2016, included a $5,000 penalty. VRF worked with budget conferees to remove this item from the budget, protecting retailers.
THE BILLS
The outcome of over 100 bills was favorable for retailers, including:
· Felony Larceny Threshold
· Minimum Wage Increase
· Plastic Bag Ban / Tax
· Paid Sick Leave
· School Calendar
· Gift Certificates
· View all the bills here.
Throughout the session, VRF was successful in sharing the retail message with legislators and the importance of the retail impact on the economy, community, and employment.
The Virginia Retail Federation worked diligently during the 2016 General Assembly to proactively represent and support the legislative interests of Virginia retailers.
Here are the bills that were tracked on retailers' behalf.
Bills | Committee | Last action | Date |
HB 4 - Bell, Richard P. - Constitutional amendment; right to work (submitting to qualified voters). | (H) Committee on Privileges and Elections | (G) Acts of Assembly Chapter text (CHAP0012) | 02/24/16 |
HB 7 - Simon - Sick leave; certain private employers to provide employees with paid benefits. | (H) Left in Commerce and Labor | 02/16/16 | |
HB 11 - Cole - Gift certificates; prohibited practices by merchant issuing certificate issued in the Commonwealth. | (H) Left in Commerce and Labor | 02/16/16 | |
HB 18 - Head - Franchisees; status thereof and its employees as employees of the franchisor. | (H) Committee on Commerce and Labor | (S) Signed by President | 03/04/16 |
HB 21 - Farrell - Retail Sales and Use Tax; exemption for certain nonprofit veteran entities. | (H) Left in Finance | 02/17/16 | |
HB 23 - Farrell - Fuels tax; refunds of taxes to certain nonprofit entities. | (G) Approved by Governor-Chapter 34 (effective 7/1/16) | 02/26/16 | |
HB 33 - Farrell - Small businesses; parental leave tax credit. | (H) Left in Finance | 02/17/16 | |
HB 44 - Habeeb - Workers' compensation; injuries or deaths presumed to be in course of employment. | (H) Committee on Commerce and Labor | (G) Governor's Action Deadline Midnight, March 11, 2016 | 03/04/16 |
HB 58 - Byron - Health benefit plans; large and small employers. | (H) Committee on Commerce and Labor | (G) Acts of Assembly Chapter text (CHAP0001) | 01/26/16 |
HB 62 - Morris - Milk production; exemptions from certain requirements. | (H) Committee on Agriculture, Chesapeake and Natural Resources | (H) Left in Agriculture, Chesapeake and Natural Resources | 02/16/16 |
HB 63 - Lingamfelter - Retail Sales and Use Tax; exemption for certain nonprofit entities. | (G) Governor's Action Deadline Midnight, Monday, April 11, 2016 | 03/07/16 | |
HB 72 - O'Bannon - Health benefit plans; large and small employers. | (H) Tabled in Commerce and Labor | 01/14/16 | |
(H) Left in Transportation | 02/16/16 | ||
HB 85 - Campbell - Cigarettes; levying of taxes by counties. | (H) Left in Finance | 02/17/16 | |
HB 93 - Kory - School calendar; local school boards responsible for setting and determining opening day of school. | (H) Left in Education | 02/16/16 | |
HB 140 - Cole - Weight limits; increases maximum gross weight of a motor vehicle eligible for an overload permit. | (H) Left in Transportation | 02/16/16 | |
HB 152 - Simon - Virginia Conflict of Interest and Ethics Advisory Council; investigative authority. | (H) Left in Courts of Justice | 02/16/16 | |
HB 153 - Simon - Virginia Conflict of Interest and Ethics Advisory Council; semiannual inspection of disclosures. | (H) Left in Courts of Justice | 02/16/16 | |
HB 154 - Simon - Conflicts of Interests Acts, State & Local Government and General Assembly; bundled gifts, penalty. | (H) Left in Courts of Justice | 02/16/16 | |
HB 155 - Simon - General Assembly Conflicts of Interests Act; disclosure of tax credits, penalty. | (H) Left in Courts of Justice | 02/16/16 | |
HB 165 - Farrell - Meals and food and beverage taxes, local; exemption for sales of meals for fundraising purposes. | (H) Continued to 2017 in Finance | 02/08/16 | |
HB 171 - Albo - Alcoholic beverage control; food-beverage ratio for certain mixed beverage licensees. | (S) Continued to 2017 in Rehabilitation and Social Services (14-Y 0-N) | 02/19/16 | |
HB 173 - Albo - Alcoholic beverage control; prohibited practices by mixed beverage licensees, exception. | (H) Left in Appropriations | 02/18/16 | |
HB 182 - Minchew - Transient occupancy tax; authorizes Frederick County to impose an additional tax. | (G) Approved by Governor-Chapter 51 (effective 7/1/16) | 02/29/16 | |
HB 214 - LeMunyon - Tax reform, state and local; joint subcommittee to study. | (H) Left in Rules | 02/16/16 | |
HB 216 - LeMunyon - Sales and use tax; tax on food purchased for human consumption. | (H) Left in Finance | 02/17/16 | |
HB 217 - LeMunyon - Machinery and tools, merchants' capital, and BPOL taxes; maximum rates established. | (H) Left in Finance | 02/17/16 | |
HB 219 - Taylor - Alcoholic beverage control; food-beverage ratio. | (H) Continued to 2017 in General Laws | 02/11/16 | |
HB 226 - Albo - Alcoholic beverage control; mixed beverage licenses, performing arts facilities. | (G) Approved by Governor-Chapter 20 (effective 7/1/16) | 02/25/16 | |
HB 274 - Yancey - Hampton Roads Transportation Fund; distribution of Fund. | (H) Committee on Appropriations | (S) Incorporated by Transportation (HB1111-Villanueva) (13-Y 0-N) | 02/24/16 |
HB 288 - Helsel - Disposable plastic shopping bags; local option to prohibit distribution. | (H) Left in Counties, Cities and Towns | 02/16/16 | |
HB 322 - Knight - Alcoholic beverage control; summary suspension of license in emergency circumstances. | (G) Approved by Governor-Chapter 42 (effective 7/1/16) | 02/26/16 | |
HB 323 - Knight - Alcoholic beverage control; purchase and sale of products. | (G) Approved by Governor-Chapter 21 (effective 7/1/16) | 02/25/16 | |
HB 378 - Farrell - Workers' compensation; fee schedules for medical and legal services. | (H) Committee on Appropriations | (G) Approved by Governor-Chapter 279 (effective 3/7/16) | 03/07/16 |
(H) Left in Courts of Justice | 02/16/16 | ||
(S) Signed by President | 03/04/16 | ||
HB 399 - Sullivan - Income tax, state; withholding tax, employer penalties. | (H) Left in Finance | 02/17/16 | |
HB 411 - James - Unemployment compensation; part-time employment. | (H) Stricken from docket by Commerce and Labor | 01/26/16 | |
(H) Left in Finance | 02/17/16 | ||
HB 469 - Head - Local taxes; rate of interest on certain refunds. | (H) Left in Finance | 02/17/16 | |
HB 544 - Watts - Retail sales and transient occupancy taxes; taxes on room rentals. | (H) Stricken from docket by Finance | 02/01/16 | |
HB 571 - Robinson - School calendar; local school boards responsible for setting and determining opening day of school. | (S) Passed by indefinitely in Education and Health (9-Y 6-N) | 02/18/16 | |
HB 597 - Plum - Minimum wage; increases minimum wage from its current federally mandated level. | (H) Left in Commerce and Labor | 02/16/16 | |
HB 619 - Bell, Robert B. - Home-produced or farm-produced food products; exempts certain foods from Board of ACS regulations. | (H) Committee on Agriculture, Chesapeake and Natural Resources | (H) Left in Agriculture, Chesapeake and Natural Resources | 02/16/16 |
HB 623 - Krizek - Minimum wage; increases minimum wage from its current federally mandated level. | (H) Left in Commerce and Labor | 02/16/16 | |
HB 714 - Marshall, R.G. - Supplemental Nutrition Assistance Program; electronic benefit transfer card. | (H) Left in Health, Welfare and Institutions | 02/16/16 | |
HB 743 - Ward - Employment records; employers required to provide to Commissioner of Labor upon request. | (H) Stricken from docket by Commerce and Labor | 01/21/16 | |
(S) Passed by indefinitely in Education and Health (9-Y 6-N) | 02/18/16 | ||
HB 755 - Bell, Richard P. - Alcoholic beverage control; annual mixed beverage performing arts facility license. | (G) Approved by Governor-Chapter 28 (effective 7/1/16) | 02/25/16 | |
(H) Left in Education | 02/16/16 | ||
HB 830 - Hope - Cigarettes and other tobacco products; increases state tax rate. | (H) Left in Finance | 02/17/16 | |
HB 835 - Greason - Alcoholic beverage control; privileges of licensed art instruction studios. | (S) Continued to 2017 in Rehabilitation and Social Services (13-Y 0-N) | 02/19/16 | |
HB 838 - McClellan - Professions, occupations, and trades; applicant's criminal history. | (H) Continued to 2017 in Commerce and Labor | 01/28/16 | |
HB 849 - Cline - Retail Sales and Use Tax; reduces tax rate on food. | (H) Left in Appropriations | 02/18/16 | |
HB 859 - Landes - Retail Sales and Use Tax; exemption for beer-making equipment and materials. | (S) Signed by President | 03/06/16 | |
HB 904 - Landes - Alcoholic beverage control; limited mixed beverage license for retail cigar shops. | (S) Continued to 2017 in Rehabilitation and Social Services (14-Y 1-N) | 02/19/16 | |
HB 910 - Minchew - Appeal of tax assessments; prior to receipt of information, person to sign acknowledgment of order. | (H) Committee for Courts of Justice | (H) Bill text as passed House and Senate (HB910ER) | 03/07/16 |
HB 944 - Wilt - Statewide Fire Prevention Code; installation or use of landscape cover materials. | (S) Stricken from Senate calendar (38-Y 1-N) | 03/02/16 | |
HB 952 - Keam - Retail Sales and Use Tax; exemption for tampons and sanitary napkins. | (H) Left in Finance | 02/17/16 | |
HB 966 - Davis - Income tax, corporate; apportionment of income to Virginia. | (H) Continued to 2017 in Finance | 02/15/16 | |
HB 969 - Davis - Virginia Retail Sales and Use Tax Act; conforms the Commonwealth's sales and use tax laws. | (H) Continued to 2017 in Finance | 02/15/16 | |
HB 971 - Lopez - Small businesses; implementation of certification programs, report. | (H) Engrossment refused by House | 02/15/16 | |
HB 988 - Lopez - Minimum wage; determining wages of tipped employees. | (H) Left in Commerce and Labor | 02/16/16 | |
HB 995 - Levine - Minimum wage; establishes a procedure by which a local alternative wage may be imposed. | (H) Left in Commerce and Labor | 02/16/16 | |
HB 999 - Levine - Family and Medical Insurance Leave Program; review of eligibility and benefit payments. | (H) Left in Commerce and Labor | 02/16/16 | |
HB 1008 - Levine - Motor vehicle fuels; sales tax in certain transportation districts, price floor. | (H) Stricken from docket by Finance | 02/08/16 | |
HB 1054 - Bell, Robert B. - Alcoholic beverage control; certain laws transferred to State Police. | (H) Left in General Laws | 02/16/16 | |
HB 1111 - Villanueva - Hampton Roads Transportation Accountability Commission; distribution of moneys. | (H) Committee on Transportation | (H) Bill text as passed House and Senate (HB1111ER) | 03/08/16 |
HB 1123 - Hope - Restrooms; retail establishment with toilet facility to allow customer access. | (H) Left in Commerce and Labor | 02/16/16 | |
HB 1133 - Kory - Paid Sick Leave Pilot Program; established, paid sick leave tax credit. | (H) Continued to 2017 in Commerce and Labor | 02/11/16 | |
(H) Left in Finance | 02/17/16 | ||
HB 1167 - Lindsey - Grand larceny; increases threshold amount of money taken, etc., to $1,000. | (H) Left in Courts of Justice | 02/16/16 | |
HB 1172 - Morris - Unemployment compensation; notice of penalties for false or misleading statements. | (H) Left in Commerce and Labor | 02/16/16 | |
HB 1179 - Morris - Unemployment compensation; deprivation of benefits. | (H) Stricken from docket by Commerce and Labor | 01/28/16 | |
HB 1192 - Murphy - Cigarettes; levying of taxes by counties. | (H) Left in Finance | 02/17/16 | |
HB 1208 - Tyler - Hampton Roads Transportation Accountability Commission; local representation. | (H) Left in Transportation | 02/16/16 | |
HB 1242 - Ingram - Restaurants; separate stations for deep-fat frying. | (H) Left in Health, Welfare and Institutions | 02/16/16 | |
HB 1258 - Rasoul - Minimum wage; increases wage from federally mandated level to $8.50 per hour. | (H) Left in Commerce and Labor | 02/16/16 | |
HB 1263 - James - Small, Women-owned, and Minority-owned Business Loan Fund; Va. Small Business Financing Authority. | (H) Bill text as passed House and Senate (HB1263ER) | 03/07/16 | |
HB 1268 - Taylor - Limited Residential Lodging and Short-term Rental Lodging Act; established, penalty. | (H) Left in General Laws | 02/16/16 | |
(H) Committee on Health, Welfare and Institutions | (G) Governor's Action Deadline Midnight, Monday, April 11, 2016 | 03/07/16 | |
HB 1288 - Hope - Small Business and Supplier Diversity, Dept. of; certification of employment services organizations. | (H) Bill text as passed House and Senate (HB1288ER) | 03/07/16 | |
HB 1305 - Miller - Solar and wind energy equipment, etc.; tax exemptions. | (G) Governor's Action Deadline Midnight, March 11, 2016 | 03/04/16 | |
HJ 9 - Cole - Congress of U.S.; repeal of personal income taxes and enactment of national retail sales tax. | (H) Left in Rules | 02/16/16 | |
HJ 72 - Krizek - Minimum wage; effects of increasing the in the Commonwealth. | (H) Left in Rules | 02/16/16 | |
(H) Committee on Agriculture, Chesapeake and Natural Resources (S) Committee on Agriculture, Conservation and Natural Resources | (G) Acts of Assembly Chapter text (CHAP0005) | 02/23/16 | |
SB 15 - Garrett - Economic development, local; transfer of taxes to qualified locality. | (S) Continued to 2017 in Finance (15-Y 0-N) | 01/26/16 | |
SB 18 - Stanley - Companion animals; surgical sterilization program. | (S) Committee on Agriculture, Conservation and Natural Resources | (S) Continued to 2017 in Agriculture, Conservation and Natural Resources (13-Y 0-N) | 01/28/16 |
SB 22 - McDougle - Police and court records; expungement of certain offenses. | (H) Committee for Courts of Justice | (H) Left in Courts of Justice | 03/08/16 |
SB 23 - Reeves - Grand larceny and certain property crimes; increases threshold amount of money taken, etc. | (H) Committee for Courts of Justice | (H) Left in Courts of Justice | 03/08/16 |
SB 42 - Carrico - Buying, receiving, or concealing stolen goods; adds the word "knowingly" to statute. | (S) Passed by indefinitely in Courts of Justice (14-Y 1-N) | 01/18/16 | |
SB 55 - Locke - Disposable plastic shopping bags; local option to prohibit distribution. | (S) Failed to report (defeated) in Local Government (6-Y 7-N) | 01/19/16 | |
SB 64 - Ruff - Retail Sales and Use Tax; removes sunset date from exemption for certain data centers. | (S) Governor's recommendation received by Senate | 03/07/16 | |
SB 88 - Marsden - Minimum wage; increases wage from its current federally mandated level to $8 per hour. | (S) Passed by indefinitely in Commerce and Labor (11-Y 4-N) | 02/01/16 | |
SB 111 - Petersen - Punitive damages; raises cap for any action accruing on or after July 1, 2016. | (H) Committee for Courts of Justice | (H) Left in Courts of Justice | 03/08/16 |
SB 114 - Petersen - Plastic bags; tax imposed in Chesapeake Bay Watershed. | (S) Passed by indefinitely in Finance (10-Y 5-N) | 01/20/16 | |
SB 119 - Petersen - Small Business; changes in definition, regulation by U.S. Small Business Administration. | (S) Continued to 2017 in General Laws and Technology (15-Y 0-N) | 02/15/16 | |
SB 129 - Edwards - Minimum wage; increases minimum wage from its current federally mandated level to $8.00 per hour. | (S) Passed by indefinitely in Commerce and Labor (11-Y 4-N) | 02/01/16 | |
SB 152 - Reeves - Sale of furs and animal parts; adoption of regulations. | (H) Committee on Agriculture, Chesapeake and Natural Resources (S) Committee on Agriculture, Conservation and Natural Resources | (G) Approved by Governor-Chapter 62 (effective 7/1/16) | 02/29/16 |
SB 154 - Reeves - Alcoholic beverage control; mixed beverage licenses, performing arts facilities. | (S) Bill text as passed Senate and House (SB154ER) | 03/07/16 | |
SB 155 - Favola - Cigarette taxes; increase of tax in Fairfax and Arlington Counties. | (S) Passed by indefinitely in Finance (13-Y 2-N) | 01/20/16 | |
SB 160 - Howell - Transient occupancy tax; reinstates authority of Arlington County to impose. | (G) Approved by Governor-Chapter 316 (effective 7/1/16) | 03/07/16 | |
SB 177 - Surovell - Grand larceny; increases threshold amount of money taken, etc., to $1,000. | (S) Incorporated by Courts of Justice (SB23-Reeves) (14-Y 0-N) | 01/20/16 | |
SB 218 - Marsden - Business license taxes; limitation on gross receipts for staffing firms. | (S) Passed by indefinitely in Finance (11-Y 1-N) | 01/26/16 | |
SB 226 - Lucas - Grand larceny and certain property crimes; increases threshold amount of money taken, etc. | (S) Incorporated by Courts of Justice (SB23-Reeves) (14-Y 0-N) | 01/20/16 | |
(S) Incorporated by Courts of Justice (SB23-Reeves) (14-Y 0-N) | 01/20/16 | ||
SB 239 - Petersen - Workers' compensation; recovering damages from other party. | (S) Stricken at request of Patron in Commerce and Labor (15-Y 0-N) | 02/01/16 | |
SB 244 - Petersen - Fuels tax, local; authorizes localities to impose. | (S) Passed by indefinitely in Finance (14-Y 0-N) | 02/02/16 | |
(S) Passed by indefinitely in Courts of Justice (15-Y 0-N) | 01/18/16 | ||
SB 274 - Wexton - Paid sick days for employees; civil penalties. | (S) Passed by indefinitely in Commerce and Labor (11-Y 4-N) | 02/01/16 | |
SB 310 - McEachin - Grand larceny; increases threshold amount of money taken to $1500, etc. | (S) Left in Courts of Justice | 02/17/16 | |
(S) Passed by indefinitely in Education and Health (9-Y 6-N) | 02/04/16 | ||
SB 373 - Ebbin - Alcoholic beverage control; food sale requirements for businesses. | (H) Continued to 2017 in General Laws | 03/01/16 | |
SB 388 - Surovell - Virginia Consumer Protection Act; failure to make required statement. | (H) Committee for Courts of Justice | (S) Bill text as passed Senate and House (SB388ER) | 03/08/16 |
SB 401 - Marsden - Crohn's disease, colitis, etc.; identification cards and information. | (H) Committee on Health, Welfare and Institutions | (H) Continued to 2017 in Health, Welfare and Institutions | 02/25/16 |
SB 416 - Vogel - Limited Residential Lodging Act; established, penalty. | (H) Committee on Appropriations | (S) Signed by President | 03/06/16 |
SB 470 - Wagner - Motor vehicle fuels sales tax; increased in Hampton Roads. | (S) Stricken at request of Patron in Finance (15-Y 0-N) | 02/09/16 | |
SB 477 - Wagner - Motor vehicle fuels; sales tax in certain transportation districts, price floor. | (S) Stricken at request of Patron in Finance (15-Y 0-N) | 02/09/16 | |
SB 499 - Sturtevant - Sales tax payments; accelerated collection of payment from retail merchants and other dealers. | (S) Passed by indefinitely in Finance (15-Y 0-N) | 01/27/16 | |
SB 532 - Surovell - Paper and plastic bags; authorizes localities in Planning District 8 by ordinance to impose a tax. | (S) Passed by indefinitely in Finance (12-Y 3-N) | 01/26/16 | |
SB 597 - Cosgrove - Appeal of tax assessments; prior to receipt of information, person to sign acknowledgment of order. | (H) Committee for Courts of Justice | (G) Governor's Action Deadline Midnight, Monday, April 11, 2016 | 03/07/16 |
(S) Passed by indefinitely in Commerce and Labor (12-Y 3-N) | 02/01/16 | ||
SB 720 - Lewis - Environmental cleanup programs; localities may by ordinance establish. | (S) Failed to report (defeated) in Local Government (6-Y 6-N) | 02/09/16 | |
SB 742 - Wagner - Motor vehicles; fuels sales tax in certain transportation districts. | (H) Continued to 2017 in Finance | 02/29/16 | |
SB 751 - DeSteph - Limited Residential Lodging and Short-term Rental Lodging Act; penalty. | (S) Left in Finance | 02/17/16 | |
SJ 127 - Obenshain - Constitutional amendment; right to work (submitting to qualified voters). | (H) Committee on Privileges and Elections | (H) Agreed to by House (64-Y 34-N) | 03/08/16 |