New Laws – Effective July 1, 2024

As we approach the July 1 implementation date, at which time many of the new laws passed during this year’s General Assembly will go into effect, our lobbyists have put together a comprehensive list to help you prepare your business for any necessary changes. Should you have any questions, please reach out.

Wages, Sales Tax Holiday, Consumer Protection/Privacy, Small Business, Tobacco, Cannabis, Unemployment Compensation, Workers Comp, Environment, Miscellaneous, Before the Governor for Signature

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Wages

Overtime Protections | Read More

The U.S. Department of Labor announced a final rule regarding the restoration and extension of overtime protections. The revisions include increases to the standard salary level and the total annual compensation threshold for highly compensated employees. Additionally, a mechanism has been introduced to provide for the timely and efficient updating of these earnings thresholds to reflect current earnings data. The first change will take effect on July 1, 2024. 

Minimum Wage | Read More

Correction made: The Virginia Minimum Wage bills (HB 1and SB 1) were vetoed by the Governor. This means that the required re-enactment for further increases was not met, and therefore the minimum wage will remain at $12 an hour until January 1, 2027, unless new legislation passes to create an increase to the minimum wage prior to that date.

NEW STATE LAWS

All new state laws going into effect July 1, 2024 are listed below.

Sales Tax Holiday

HB 25​​ and SB 116 – Retail sales and use tax holiday; establishes an annual tax holiday that takes place in August – Delayed Effective Date July 1, 2025 – Budget language will cover the 2024 Holiday in August

• 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.
• Sunset of 2030

Consumer Protection/Privacy

HB 707 and SB 361 – Consumer Data Protection Act; protections for children

Delayed Effective Date –  January 1, 2025

• Prohibits, subject to a parental consent requirement, a data controller from processing personal data of a known child (i) for the purposes of targeted advertising, the sale of such personal data, or profiling in furtherance of decisions that produce legal or similarly significant effects concerning a consumer; (ii) unless such processing is reasonably necessary to provide the online service, product, or feature; (iii) for any processing purpose other than the processing purpose that the controller disclosed at the time such controller collected such personal data or that is reasonably necessary for and compatible with such disclosed purpose; or (iv) for longer than is reasonably necessary to provide the online service, product, or feature. The bill prohibits, subject to a parental consent requirement, a data controller from collecting precise geolocation data from a known child unless (i) such precise geolocation data is reasonably necessary for the controller to provide an online service, product, or feature and, if such data is necessary to provide such online service, product, or feature, such controller shall only collect such data for the time necessary to provide such online service, product, or feature and (ii) the controller provides to the known child a signal indicating that such controller is collecting such precise geolocation data, which signal shall be available to such known child for the entire duration of such collection. The bill prohibits a data controller from engaging in the activities described in the bill unless the controller obtains consent from the child’s parent or legal guardian in accordance with the federal Children’s Online Privacy Protection Act.

​​HB 744 – Consumer protection; automatic renewal or continuous service offers

• Requires a supplier making automatic renewal or continuous service offers that automatically renew after more than 30 days and extend the automatic renewal or continuous service offer for more than a period of 12 months to notify the consumer of the option to cancel no less than 30 days and no more than 60 days before the cancellation deadline or the end of the current contract term.

HB 1519 – Virginia Consumer Protection Act; Fees for Electronic Fund Transfers; prohibited – Re-enactment clause (must be approved during 2025 Session). SCC is also directed to create report on proposed changes and present by December 1, 2024.

• Provides that charging any transaction or processing fee or similar surcharge for the purchase of a good or service through the use of an electronic fund transfer is a prohibited practice under the Virginia Consumer Protection Act. The bill provides that such prohibited practice includes any aspect of a consumer transaction that is subject to the Virginia Residential Landlord and Tenant Act.

Small Business

HB 1404 – Small SWaM Business Procurement Enhancement Program; established, definitions, report – Reenactment clause (will not be effective unless passed during the 2025 Session)

• Establishes the Small SWaM Business Procurement Enhancement Program with a statewide goal of 42 percent of certified small SWaM business utilization in all discretionary spending by executive branch agencies and covered institutions in procurement orders, prime contracts, and subcontracts, as well as a target goal of 50 percent subcontracting to small SWaM businesses in instances where the prime contractor is not a small SWaM business for all new capital outlay construction solicitations that are issued. Executive branch agencies and covered institutions are required to increase their small SWaM business utilization rate by three percent per year until reaching the 42 percent target level or, if unable to do so, to implement achievable goals to increase their utilization rate. In addition, the bill provides for a small SWaM business set-aside for state agency and covered institution purchases of goods, services, and construction, requiring that purchases up to $100,000 be set aside for award to certified small SWaM businesses.
  The bill creates the Division of Procurement Enhancement within the Department of Small Business and Supplier Diversity for purposes of collaborating with the Department of General Services, the Virginia Information Technologies Agency, the Department of Transportation, and covered institutions to further the Commonwealth’s efforts to meet the goals established under the Small SWaM Business Procurement Enhancement Program, as well as implementing initiatives to enhance the development of small businesses, microbusinesses, women-owned businesses, service disabled veteran-owned businesses and minority-owned businesses in the Commonwealth.
  Finally, the bill Requires the Department of Small Business and Supplier Diversity to conduct a disparity study every five years, the next due no later than January 1, 2026. The study shall evaluate the need for enhancement and remedial measures to address the disparity between the availability and the utilization of women-owned and minority-owned businesses. The bill has a general delayed effective date of January 1, 2025 and a delayed effective dates of July 1, 2025 for covered institutions.

Tobacco

HB 790 and SB 582– Registration of tobacco products retailers; purchase, possession, and sale of retail tobacco

• Prohibits Internet sales of liquid nicotine or nicotine vapor products, except to a retail dealer, and prohibits the sale of retail tobacco products from vending machines. 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 “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 provides that the punishment of a retail establishment that sells, gives, or furnishes a 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 a 30 day suspension of such establishment’s distributor’s license, and (iii) a civil penalty of $10,000, revocation of such license, and such distributor shall be ineligible to hold a 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 also removes the exception allowing the sale, giving, or furnishing of any tobacco product, nicotine vapor product, or alternative nicotine vapor product to active-duty military personnel who are 18 years of age or older. The bill requires the Department, in collaboration with the Virginia Alcoholic Beverage Control Authority and local law enforcement, 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 also imposes a tax upon liquid nicotine in closed systems, as defined in the bill, at the rate of $0.066 per milliliter and upon liquid nicotine in open systems, as defined in the bill, at the rate of 20 percent of the wholesale price. The bill applies licensing requirements to manufacturers, distributors, and retail dealers of liquid nicotine and creates new safety requirements related to the advertising, marketing, and labeling of liquid nicotine and nicotine vapor products. The provisions of the bill shall not become effective unless reenacted by the 2025 Session of the General Assembly.

HB 947– Local Government; Regulation by ordinance for locations of tobacco products, etc.

• Allows a locality to regulate the retail sale locations of tobacco products, nicotine vapor products, alternative nicotine products, or hemp products intended for smoking for any such retail sale location and may prohibit a retail sale location on property within 1,000 linear feet of a child day center or a public, private, or parochial school.

HB 1018 – Investigators; powers, enforcement of certain tobacco laws

• Authorizes investigators with the Office of the Attorney General to seize cigarettes that are unlawfully sold, possessed, distributed, transported, imported, or otherwise held and to accompany and participate with special agents of the Alcoholic Beverage Control Board or other law-enforcement officials engaging in an enforcement action involving counterfeit and unstamped cigarettes.

HB 1069 and SB 550– Liquid nicotine and nicotine vapor products; certification and directory; penalties – Delayed effective date (July 1, 2025)

• Requires every manufacturer of liquid nicotine or nicotine vapor products that are sold for retail sale 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 for retail sale 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 sold or removed from retail sale within 30 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 and, with the concurrence of 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, or an agent thereof, 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. The provisions of the bill do not become effective unless reenacted by the 2025 Session of the General Assembly.

HB 1099 – Heated tobacco; taxation

• Redefines “cigarette” for state cigarette tax purposes to include any product containing nicotine that is intended to be burned or heated under ordinary conditions of use. Under current law, heated tobacco products are distinct from cigarettes for the purpose of taxation. The bill also subjects such cigarettes intended to be heated to an excise tax of 2.25 cents per cigarette on and after July 1, 2021. Under current law, heated tobacco products are subject to the tobacco products tax at such rate.

Cannabis

HB 149 and SB 391– Employee protections; medicinal use of cannabis oil

• 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.

Unemployment Compensation

HB 14 and SB 381– Unemployment compensation; employer’s failure to respond to requests for information, etc

• Provides that an employer’s account shall not be relieved of charges relating to an erroneous payment if the Virginia Employment Commission determines that (i) the employer has failed to respond timely or adequately to a written request for information related to the claim and (ii) the employer has established a pattern of failing to respond timely or adequately to such requests, as described in the bill. The bill requires the Commission to provide written notice for each instance of untimely or inadequate employer response to such requests. The bill provides that upon the Commission’s third determination, and for each subsequent determination, within the applicable review period that an employer failed to respond timely or adequately to such a request, the employer shall be considered to have waived all rights in connection with the claim, including participation and appeal rights. The bill requires a deputy examining a claim to provide the reasoning behind the decision, as described in the bill, and a short statement of case-specific facts material to the determination together with any notice of determination upon a claim. The provisions of the bill have a delayed effective date of July 1, 2025.

HB 1261 and SB 536 – Unemployment compensation; continuation of benefits; repayment of overpayments

• Reinstates 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. 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. The bill has an expiration date of July 1, 2028.

SB 382 – Unemployment compensation; collection of overpayments; limitations

• 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 five years from the last day of the benefit year in which the overpayment was made, (ii) immediately upon the death of the claimant, (iii) upon the claimant’s discharge in bankruptcy occurring subsequently to the determination of payment; or (iv) at any time where the Commission finds such overpayment to be uncollectible or the recovery of such overpayment to be administratively impracticable

Workers Comp

HB 205 – Workers’ compensation; prompt payment, limitation on claims

• Prohibits an employer or workers’ compensation carrier from seeking recovery of a payment made to a health care provider for health care services rendered to a claimant unless such recovery is sought less than one year from the date payment was made to the health care provider. Under current law, such prohibition only applies to services rendered after July 1, 2014.
  The bill also prohibits a health care provider from submitting a claim to the Virginia Workers’ Compensation Commission contesting the sufficiency of payment for health care services rendered to a claimant unless such claim is filed within one year of the date the last payment is received by the health care provider. Under current law, such prohibition only applies to services rendered after July 1, 2014.

SB 241 – Workers’ compensation; notice of right to dispute claim

• Requires that when an employee’s workers’ compensation claim is denied, an employer or insurer shall include in its letter denying benefits a notice that the employee has a right to dispute the claim denial through the Virginia Workers’ Compensation Commission.

ABC

HB 522 and SB 182– Alcoholic beverage control; advertisements

• 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

• 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.

SB 658 – ABC, Timeline for Summary Suspension

• Provides that when special agents of the Board of Directors of the Virginia Alcoholic Beverage Control Authority are conducting an initial investigation for purposes of summary suspension and the 48-hour time limit for such initial investigation expires on a Saturday, Sunday, or legal holiday, the special agents may submit their findings from such initial investigation any time prior to the close of business on the next day that is not a Saturday, Sunday, or legal holiday.

Environment

HB 1085 and SB 243– PFAS Expert Advisory Committee; established, monitoring sources.

• Requires, for every public water system, as defined in the bill, the Department of Health (VDH) to assist the Department of Environmental Quality (the Department) by transferring to the Department quarterly all validated monitoring results available to VDH that indicate PFAS maximum containment level, as defined in the bill, exceedances. In such circumstances, the bill provides that the Department is required to develop and implement a plan to prioritize and conduct PFAS assessments for identifying significant sources of PFAS in such public water system’s raw water source or sources. The bill requires any facility, if deemed by the Department to be a potentially significant source of PFAS in the public water system’s raw water source, (i) to perform and promptly report the results of quarterly discharge monitoring for one year and (ii) to report to the Department, within 90 days after being directed by the Department, its manufacture or use of PFAS. The bill establishes a PFAS Expert Advisory Committee to assist the Department and VDH in its PFAS-related efforts and requires the Committee to meet at least two times per year through June 30, 2027. The bill requires the Department to annually report certain information to the Governor and the General Assembly by October 1.

Miscellaneous

                  HB 160 – Veterans; workplace poster for benefits and services

• 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 633 – Forced labor or service; civil action for trafficking, penalties

• Expands the offense of abduction to penalize any person who, by force, intimidation or deception, and without legal justification or excuse, obtains the labor or services of another, or seizes, takes, transports, detains or secretes another person or threatens to do so. The bill also expands the offense of receiving money for procuring a person to penalize any person who causes another to engage in forced labor or services or provides or obtains labor or services by any act as describe in the offense of abduction. Lastly, the bill allows any person injured as a result of an abduction for the purposes of forced labor or services to commence a civil action for recover compensatory damages, punitive damages, and reasonable attorney fees and costs

HB 782 – Virginia Human Rights Act; dual-filed civil actions

• ​​Clarifies timelines for dual-filing complaints alleging unlawful discrimination under the Virginia Human Rights Act and the U.S. Equal Employment Opportunity Commission. The bill allows either the complainant or the respondent for any charge of discrimination to request a notice of the right to file a civil action after the Commission has closed its file on such charge of discrimination.

HB 474 – Restroom Access Act; civil liability

• Requires a retail establishment that does not have a public restroom but has an employee toilet facility to allow any customer with an eligible medical condition, as defined in the bill, to use such employee toilet facility during normal business hours if certain conditions are met. A customer who suffers loss as a result of a violation may bring an action to recover damages not to exceed $100.

HB 1035 – Places of public accommodation; possession and administration of epinephrine

Before the Governor for Signature

• Permits every place of public accommodation, defined in relevant law as all places or businesses offering or holding out to the general public goods, services, privileges, facilities, advantages, or accommodations, to make epinephrine available for administration and permits any employee of such place of public accommodation who is authorized by a prescriber and trained in the administration of epinephrine to possess and administer epinephrine to a person present in such place of public accommodation believed in good faith to be having an anaphylactic reaction. Current law limits such permission to every public place, defined in relevant law as any enclosed, indoor area used by the general public, and any employee of such public place.

HB 1165 – Persons with disabilities; adds definitions related to rights

• Adds definitions related to the rights of persons with disabilities to relevant law. The bill defines “path of travel,” “place of public accommodation,”” “public entity,” “private entity,” and “readily achievable.” The bill requires places of public accommodation to ensure that barriers to accessibility are removed when the removal is readily achievable.

HB 1301 – Virginia Post-Disaster Anti-Price Gouging Act; definitions

• ​​Provides that for the purposes of the Virginia Post-Disaster Anti-Price Gouging Act, “consumer transaction” includes transactions involving the advertisement, sale, lease, license, or offering for sale, lease, or license of employment services to be provided or procured for business purposes. The bill also amends the definition of “time of disaster” to mean the longer of (i) the period of time when a state of emergency declared by the Governor or the President of the United States as the result of a disaster, emergency, or major disaster is in effect or (ii) 30 days after the occurrence of the disaster, emergency, or major disaster that resulted in the declaration of the state of emergency. Under current law, the definition of “time of disaster” means the shorter of the time periods specified in clauses (i) and (ii).

SB 350 – Virginia Human Rights Act; right to sue

• Permits a complainant who has not received a notice of the right to file a civil action from the Office of Civil Rights of the Department of Law or the Equal Employment Opportunity Commission as requested after 180 days have passed from the date the complaint was filed to commence a timely civil action in an appropriate general district or circuit court having jurisdiction over the person who allegedly unlawfully discriminated against the complainant.