As we head into the home stretch of the 2024 legislative session, the House and Senate have now worked through several bills from the other body and passed their respective versions of the state budgets. Legislators will take the next two weeks to work through the slate of bills that emerged from the other chamber while also negotiating a budget conference report, which is the final budget deal sent to the Governor for his consideration. Currently, there are 994 bills still pending, 826 bills that have failed, 348 bills that have been continued until the next session, and 742 bills that have passed.
The proposed budgets from the House and Senate reduce, or in some cases entirely remove, key pieces of Governor Youngkin’s original budget. Both budgets cut several proposed projects, including government IT upgrades and a new state office building and both budgets provide additional funding for public education and state employee salary increases.
One key difference between the legislative budgets and the Governor’s budget is the focus on public education. With the Governor’s tax proposals stripped from their proposals, both the House and Senate have put those funds towards implementing recommendations from JLARC aimed at fully funding public schools. Both chambers increased public schools funding compared to the Governor’s budget, including $940 million more in the House and $1.6 billion more in the Senate. Other initiatives receiving additional funding include teacher salaries, school construction (only in the Senate), instructors for English language learners, and community schools.
Another high-profile difference between the House and Senate budgets is the proposed Monumental Sports Arena project in Alexandria. Language to create the Virginia Sports and Entertainment Authority was included in the House budget only.
Both budget bills passed out of their respective chambers last Thursday, beginning a conference process between the chambers ahead of negotiations with the Governor. Below you will find a breakdown of legislation that was acted on over the last week. Your Virginia Retail Federation team will continue to keep you informed throughout the 2024 Session on all issues that impact your business.
Legislation Breakdown
Sales Tax Holiday, Paid Leave, Sales Tax Increase, Minimum Wage, Fee Disclosure, Mandates, Class Action, Product Ban, ABC, Unemployment Compensation, Tobacco, Miscellaneous
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Sales Tax Holiday
SB 116– Retail sales and use tax holiday; establishes an annual tax holiday that takes place in August
House Substitute reported 99-Y 0-N, senate rejected substitute, and House has requested a conference committee (This will be where they determine if there is a Sunset or not)
- Establishes an annual retail sales and use tax holiday that takes place on the first full weekend in August beginning on August 1, 2025. During such weekend, state retail sales and use tax will not apply to certain (i) school supplies, (ii) clothing and footwear, (iii) qualified products designated as Energy Star or WaterSense, (iv) portable generators, or (v) hurricane preparedness equipment.
Paid Leave
SB 373– Paid family and medical leave insurance program; notice requirements, civil action
Reported from House Appropriations Committee with substitute 12-Y 10-N
- Requires the Virginia Employment Commission to establish and administer a paid family and medical leave insurance program with benefits beginning January 1, 2027. Under the program, benefits are paid to covered individuals, as defined in the bill, for family and medical leave. Funding for the program is provided through premiums assessed to employers and employees beginning January 1, 2026. The bill provides that the amount of a benefit is 80 percent of the employee’s regional 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 regional average weekly wage. The bill caps the duration of paid leave at 8 weeks in any application year and provides self-employed individuals the option of participating in the program.
Sales Tax Increase
Active Bills
HB 805 – Sales and use tax, local; additional tax authorized in all counties & cities to support schools
Passed the Senate with substitute 27-Y 12-N
- Additional local sales and use tax to support schools; referendum. 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 if such levy is approved in a voter referendum. Under current law, only Charlotte, Gloucester, Halifax, Henry, Mecklenburg, Northampton, Patrick, and Pittsylvania Counties and the City of Danville are authorized to impose such a tax.
SB 14– Sales and use tax, local; additional tax authorized in all counties & cities to support schools
Reported from House Finance Committee with a substitute 13-Y 8-N
- Additional local sales and use tax to support schools; referendum. 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 if such levy is approved in a voter referendum. Under current law, only Charlotte, Gloucester, Halifax, Henry, Mecklenburg, Northampton, Patrick, and Pittsylvania Counties and the City of Danville are authorized to impose such a tax.
Defeated Bills
SB 146– Sales and use tax, local; construction or renovation of schools in Prince Edward County
Incorporated into SB 14 in House Finance Committee (defeated)
Minimum Wage
HB 1 and SB 1– Minimum wage; increases wage to $13.50 per hour effective January 1, 2025
HB 1 Passed the Senate 21-Y 18-N
SB 1 Passed the House 51-Y 47-N
- Increases the minimum wage from the current rate of $12.00 per hour to $13.50 per hour effective January 1, 2025, and to $15.00 per hour effective January 1, 2026. The bill satisfies a reenactment clause included in Chapters 1204 and 1242 of the Acts of Assembly of 2020.
Fee Disclosure
SB 388 – Virginia Consumer Protection Act; prohibited practices, mandatory fees disclosure
House Labor and Commerce Subcommittee recommends reporting 5-Y 2-N
- Prohibits a supplier in connection with a consumer transaction from advertising, displaying, or offering any pricing information for goods or services without prominently displaying the total price, which shall include all mandatory fees or charges other than taxes imposed. The bill defines “mandatory fees or charges” as any fee or surcharge that must be paid in order to purchase the advertised good or service, is not reasonably avoidable, and that a reasonable consumer would expect to be included. The bill clarifies that such term does not include shipping fees or taxes or fees imposed by a government or government-approved entity.
Mandates
HB 160 – Veterans; workplace poster for benefits and services
Passed the Senate 40-Y 0-N
- Directs the Department of Labor and Industry, in consultation with the Department of Veterans Services, to create a poster describing benefits and services available to veterans and allows employers to request and display such poster in the workplace. The bill enumerates a minimum group of resources the poster shall include, including (i) Department of Veterans Services’ programs, contact information, and website address; (ii) substance abuse and mental health treatment resources; (iii) educational, workforce, and training resources; (iv) tax benefits; (v) eligibility for unemployment insurance benefits; (vi) legal services; and (vii) the U.S. Department of Veterans Affairs Veterans Crisis Line.
HB 569 – Employment discrimination; employee notification of federal and state statute of limitations
Passed the Senate with a substitute 21-Y 19-N
- Requires an employer who receives an employee complaint alleging sexual assault, harassment, or any other form of discrimination for which the employee may seek enforcement by the U.S. Equal Employment Opportunity Commission (EEOC) or the Office of the Attorney General to notify such employee that a charge may be filed with the EEOC or the Office of the Attorney General within 300 days after the alleged unlawful discriminatory practice occurred. The bill also requires an employer to provide this information as part of any new employee training provided at the commencement of employment or anti-discrimination training provided to an employee.
HB 770 – Retaliatory action against employee prohibited; remedies available
Passed the Senate with amendment 21-Y 19-N
- Provides that a violation of certain provisions regarding retaliatory action against employees may be alleged in a court of competent jurisdiction within one year of the employer’s final prohibited retaliatory action. The bill states that in such cases, treble damages may be awarded if such violation was willful.
HB 990 and SB 370– – Prohibiting employer seeking wage or salary history of prospective employees; wage or salary range
HB 990 Passed the Senate with substitute 21-Y 18-N
SB 370 Passed the house 50-Y 48-N
- Prohibits a prospective employer from (i) seeking the wage or salary history of a prospective employee; (ii) relying on the wage or salary history of a prospective employee in determining the wages or salary the prospective employee is to be paid upon hire; (iii) relying on the wage or salary history of a prospective employee in considering the prospective employee for employment; (iv) refusing to interview, hire, employ, or promote a prospective employee or otherwise retaliating against a prospective employee for not providing wage or salary history; and (v) failing or refusing to disclose in each public and internal posting for each job, promotion, transfer, or other employment opportunity the wage, salary, or wage or salary range. The bill establishes a cause of action for an aggrieved prospective employee or employee and provides that an employer that violates such prohibitions is liable to the aggrieved prospective employee or employee for statutory damages between $1,000 and $10,000 or actual damages, whichever is greater, reasonable attorney fees and costs, and any other legal and equitable relief as may be appropriate. The bill also provides for civil penalties for violations not to exceed $1,000 for a first violation, $2,000 for a second violation, and $4,000 for a third or subsequent violation.
Class Action
HB 418 – Civil Actions; actions filed on behalf of multiple persons
Passed the Senate with a Substitute 21-Y 18-N and adopted by the House 51-Y 49-N
- Provides that one or more members of a class may, as representative parties on behalf of all members, bring a civil action or may be proceeded against in a civil action provided that (i) the class is so numerous that joinder of all members or proceeding with such actions on an individual basis is impracticable or contrary to judicial economy; (ii) there are questions of law or fact common to the class; (iii) the claims or defenses of the representative parties are typical of the claims or defenses of the class; and (iv) the representative parties shall fairly and adequately protect the interests of the class. The bill further sets out the procedure to certify a class action, the duties of counsel appointed in a class action, the various orders a court may issue during the course of a class action, and the process by which a settlement, voluntary dismissal, or compromise may occur. The bill has a delayed effective date of July 1, 2025.
SB 259 – Civil actions flied on behalf of multiple persons; types of class actions
Reported from House Courts of Justice Committee with substitute 11-Y 10-N, reported from House Appropriations Committee 12-Y 10-N
- Provides that on a motion of any party, a circuit court may enter an order certifying a class or joining, coordinating, consolidating, or transferring civil actions upon finding that separate civil actions brought by a plaintiff on behalf of multiple similarly situated persons involve common questions of law or fact and arise out of the same transaction or occurrence. Currently, the circuit court may enter such order for such separate civil actions if such actions are brought by six or more plaintiffs.
The bill also provides that in a civil action for retaliation of an employer against an employee, the court or jury may order the reinstatement of the employee to a similar or equivalent position and compensation for lost wages, benefits, and remuneration, as well as reasonable attorney fees and costs, and may award treble damages upon a finding that such act of retaliation by an employer against an employee was willful.
Product Ban
HB 47 – Invasive plant species; requirements for retail sales
Passed the Senate with substitute 31-Y 9-N
- Requires, for the retail sale of any invasive plant species on a list established by the Department of Conservation and Recreation, such plant be accompanied by conspicuous signage that identifies the plant as invasive and includes the words “Plant with caution: invasive plant species. May cause environmental harm. Ask about alternatives.”
SB 306 – Invasive plant species; retail sales; civil penalty
House Agriculture, Chesapeake and Natural Resources subcommittee recommends reporting with substitute 9-Y 1-N
- Requires, for the retail sale of any invasive plant species for outdoor use on a list established by the Department of Conservation and Recreation, such plant be accompanied by conspicuous signage that identifies the plant as invasive. The bill requires the Commissioner of Agriculture and Consumer Services to designate the format, size, and content of such signage no later than October 1, 2024, and requires the Commissioner to issue a stop sale order and mark or tag a plant in a conspicuous manner when an invasive plant is for sale at a retail outlet without appropriate signage. In such case, the bill requires the Commissioner to give written notice of a finding made to the owner, tenant, or person in charge of such retail outlet and requires the stop sale order issued to remain in effect until the required signage is posted. Any person who violates the provisions of the bill is subject to a civil penalty not to exceed $500.
HB 1167 – Local prohibition on the sale of English ivy; civil penalty
Passed the. Senate 21-Y 18-N
- Authorizes any locality to adopt an ordinance prohibiting the sale of English ivy, with violations punishable by a civil penalty not to exceed $50 for a first violation and not to exceed $200 for a subsequent violation within 12 months.
ABC
HB 522 and SB 182– Alcoholic beverage control; advertisements
HB 522 Passed the Senate 40-Y 0-N
SB 182Passed the House 90-Y 7-N
- Directs the Board of Directors of the Virginia Alcoholic Beverage Control Authority to promulgate regulations that prescribe the terms and conditions under which manufacturers, brokers, importers and wholesalers may advertise and promote alcoholic beverages via the Internet, social media, direct-to-consumer electronic communication, or other electronic means.
HB 688 and SB 635 – Alcoholic beverage control; sale and delivery of mixed beverages and pre-mixed wine for off-premise
HB 688Passed the Senate 40-Y 0-N
SB 635 Passed the House 82-Y 16-N
- Repeals the July 1, 2024, sunset on provisions that allow (i) distillers that have been appointed as agents of the Board of Directors of the Virginia Alcoholic Beverage Control Authority, mixed beverage restaurant licensees, and limited mixed beverage restaurant licensees to sell mixed beverages for off-premises consumption and (ii) farm winery licensees to sell pre-mixed wine for off-premises consumption. The bill also repeals, effective July 1, 2026, third-party delivery licenses. The bill requires the Authority to convene a work group to review third-party delivery licenses and report its findings and recommendations to the Chairmen of the House Committee on General Laws and the Senate Committee on Rehabilitation and Social Services by November 15, 2024.
Unemployment Compensation
SB 382 – Unemployment compensation; collection of overpayments; limitations
Reported from House Appropriations Committee 22-Y 0-N
- Provides that collection activities for an overpayment, provided that such overpayment was not caused by fraud on the part of the claimant, shall be suspended and that the Virginia Employment Commission shall determine as uncollectable and discharge the overpayment if it remains unpaid after the earliest of the following: (i) after the expiration of three years from the last day of the benefit year in which the overpayment was made, (ii) immediately upon the death of the claimant, or (iii) upon the claimant’s discharge in bankruptcy occurring subsequently to the determination of payment.
SB 542 – Unemployment insurance; benefit eligibility conditions; lockout exception to labor dispute
Passed the House 51-Y 47-N
- Amends the Virginia Unemployment Compensation Act’s labor dispute disqualification to provide that a lockout by an employer shall not constitute a labor dispute and that locked-out employees who are otherwise eligible for benefits shall receive such benefits unless (i) the recognized or certified collective bargaining representative of the locked-out employees refuses to meet under reasonable conditions with the employer to discuss the issues giving rise to the lockout, (ii) there is a final adjudication under the federal National Labor Relations Act that such representative has refused to bargain in good faith with the employer, or (iii) the lockout is the direct result of such representative’s violation of an existing collective bargaining agreement.
SB 536– Unemployment compensation; continuation of benefits; repayment of overpayments
Passed the House 52-Y 46-N
- Makes permanent provisions of the Code that expired 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 requires 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 unpaid overpayment of benefits established since March 15, 2020, to the collections process indefinitely. The bill specifies that all costs that result from implementing provisions of the bill shall be incurred by federal administrative grants and the general fund.
Finally, the bill adds overpayments that the Commission has waived the requirement to repay to the list of situations where specific employers are not responsible for benefit charges.
Tobacco
HB 947– Comprehensive plan; vape shops near schools
Passed the Senate 40-Y 0-N
- Requires a locality, during any amendment to its comprehensive plan that takes place after July 1, 2024, to incorporate into its comprehensive plan strategies to limit vape shops near schools for the purpose of reducing use of nicotine vapor products by youth.
SB 550– Liquid nicotine and nicotine vapor products; certification and directory; penalties
Passed the House 98-Y 0-N
- Requires every manufacturer of liquid nicotine or nicotine vapor products that are sold in the Commonwealth to certify to the Attorney General that (i) the manufacturer has received a marketing authorization or similar order for the liquid nicotine or nicotine vapor product from the U.S. Food and Drug Administration (FDA) or (ii) (a) the liquid nicotine or nicotine vapor product was marketed in the United States as of August 8, 2016, or (b) the manufacturer submitted a premarket tobacco product application for the liquid nicotine or nicotine vapor product to the FDA on or before September 9, 2020, and such application either remains under review by the FDA or a final decision on the application has not otherwise taken effect. The bill requires a manufacturer to submit such a form for each liquid nicotine or nicotine vapor product that such manufacturer sells in the Commonwealth. Under the bill, any manufacturer that falsely represents any of the information required by the certification requirement is guilty of a Class 3 misdemeanor for each false representation.
The bill requires the Attorney General to establish and maintain a directory that lists all liquid nicotine or nicotine vapor product manufacturers and liquid nicotine and nicotine vapor products for which current and accurate certification forms have been submitted. The bill requires the Attorney General to remove or exclude from such directory any such product that is not in compliance and to notify the manufacturer of such noncompliance. The bill allows a 10-business-day period for a manufacturer to establish compliance. The bill requires that any such products that are removed from the list be removed from retail sale within 21 days or become subject to seizure and requires a manufacturer, wholesaler, or retail dealer to notify each purchaser of a removed product that it has been removed from the directory at the time of delivery of such product. The bill entitles such a purchaser to a refund of the purchase price and creates a cause of action to recover such refund.
The bill prohibits the sale, distribution, importation, or offer for sale of any liquid nicotine or nicotine vapor product that is not listed in the directory. The bill provides for a civil penalty of $1,000 per day for each product offered for sale in violation of the bill’s provisions until the offending product is removed from the market or until the offending product is properly listed on the directory.
The bill requires any person that receives, stores, sells, handles, or transports liquid nicotine or nicotine vapor products to preserve all records relating to the purchase, sale, exchange, receipt, or transportation of all liquid nicotine or nicotine vapor products for a period of three years. The bill provides that all such records are subject to audit or inspection at any time by any duly authorized representative of the Attorney General. Any person who violates the recordkeeping provisions of the bill is guilty of a Class 2 misdemeanor.
Additionally, the bill provides that the Department of Taxation, the Attorney General, any other law-enforcement agency of the Commonwealth, or any federal law-enforcement agency conducting a criminal investigation involving the trafficking of liquid nicotine or nicotine vapor products may access at any time such records. The bill requires the Department of Taxation to impose a penalty of $1,000 for each day that a person fails or refuses to allow or cooperate with an audit, inspection, or investigation of such records.
The bill authorizes the Attorney General, any attorney for the Commonwealth, or the attorney for any city, county, or town to cause an action to enjoin any violation of the provisions of the bill. The circuit courts are authorized by the bill to (i) issue temporary or permanent injunctions to restrain and prevent violations of the provisions of the bill and (ii) order forfeiture on any property seized for such a violation. The bill authorizes the Attorney General to issue a civil investigative demand.
Under the bill, any retailer and wholesaler that sells or distributes any liquid nicotine or nicotine vapor product in the Commonwealth is subject to scheduled or unscheduled compliance checks carried out by the Attorney General for enforcement purposes.
The bill requires the Attorney General to provide an annual report to the General Assembly regarding the status of the directory, manufacturers and products included in the directory, and revenues and expenditures related to and enforcement activities undertaken pursuant to the requirements of the bill.
Finally, the bill makes a violation of its provisions a prohibited practice under the Consumer Protection Act.
SB 582 – Retail Tobacco products; purchase, sale, etc
Passed the House 85-Y 13-N
- 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 “retail tobacco products” by including in such definition products currently defined as “nicotine vapor products” or “alternative nicotine vapor products.” The bill also removes provisions prohibiting the attempt to purchase, the purchase, or the possession of tobacco products by persons younger than 21 years of age. The bill also provides for a punishment for a retail dealer that sells, gives, or furnishes a retail tobacco product to a person younger than 21 years of age or to a person who does not demonstrate that such person is at least 21 years of age is (i) a civil penalty of $1,000 for a first offense, (ii) a civil penalty of $5,000 for a second offense, and (iii) a civil penalty of $10,000, revocation of the retail dealer’s retail sales and use tax exemption certificate for stamped cigarettes purchased for resale or distributor’s license, and provides that such violator will be ineligible to hold such certificate or license for a period of three years following the most recent violation. Under current law, such penalties apply only to the sale, distribution, or purchase of a bidi and do not require a suspension or revocation of the establishment’s distributor’s license, while violations involving all other products are punishable by a civil penalty of $100 for a first offense, $200 for a second offense, and $500 for a third or subsequent offense. The bill requires certain education for retail dealers and its employees. The bill requires the Department, in collaboration with the Virginia Alcoholic Beverage Control Authority and Department of Taxation and local law enforcement, to enforce the new provisions and to conduct a compliance check every 24 months on any retailer selling retail tobacco products and to use a person younger than 21 years of age to conduct such checks. The bill directs (i) the Virginia Alcoholic Beverage Control Authority, the Virginia Department of Agriculture and Consumer Services, and Department of Taxation to collaborate on the implementation of the bill’s provisions and (ii) the Department of Taxation to evaluate taxing liquid nicotine in closed and open systems, and for such findings to be reported to the General Assembly no later than November 1, 2024.
Miscellaneous
HB 149 – Employee Protections; medicinal use of cannabis product
Reported from Senate Rehabilitation and Social Services Committee with substitute 10-Y 5-N
- Amends the provision that prohibits an employer from discriminating against an employee for such employee’s lawful use of cannabis product pursuant to a valid written certification issued by a practitioner for the treatment or to eliminate the symptoms of the employee’s diagnosed condition or disease, with certain exceptions, by specifying that such use must conform to the laws of the Commonwealth and that such protections extend to the employees of the Commonwealth and other public bodies.
SB 391– Employee protections; medicinal use of cannabis oil
Passed the House 80-Y 18-N
- Amends the provision that prohibits an employer from discriminating against an employee for such employee’s lawful use of cannabis oil pursuant to a valid written certification issued by a practitioner for the treatment or to eliminate the symptoms of the employee’s diagnosed condition or disease, with certain exceptions, by specifying that such use must conform to the laws of the Commonwealth and by excluding the employees of the Commonwealth and other public bodies from such protections.
