|
SAVE THE DATE!
Fantastic 50 Awards
April 27, 2017
Westfields Marriott, Chantilly
Virginia Chamber Annual Dinner
May 11, 2017
The Jefferson Hotel, Richmond
Energy & Sustainability Conference
May 24, 2017
Greater Richmond Convention Center
7th Annual Health Care Conference
June 8, 2017
Greater Richmond Convention Center
2017 Virginia Workforce Conference
September 28, 2017
Greater Richmond Convention Center |
|
| |
|
President's Message
Wednesday marked crossover at the General Assembly, the halfway point after which each house may only hear bills that originated in the other.
Yesterday was the last day for each house to complete work on their version of the budget bill. They now have until Wednesday, February 15 to act on the budget bill of the other house and appoint conferees. We're monitoring a few big-ticket items in the budget, including the following:
- GO Virginia-both houses restored $7.5 million of the $15 million the Governor took out of the budget
- Grants-budget language to require state agencies to report when they return federal grants-in both the House and Senate budgets
- New economy workforce credential grant-Governor provided an additional $1 million to the program; Senate retained that amount in their budget
- Virginia International Trade Corporation-both houses removed budget language establishing VITC as an independent agency.
Below, you'll find an update on where we are at the halfway point of session on bills we're supporting, bills we opposed, and some other bills we're monitoring that may impact your business. There are just two full weeks left before the 2017 General Assembly adjourns, but still much to accomplish. Our Government Affairs team continues to work hard on your behalf, and will continue to monitor the items below in addition to the budget and other
Bills We're Watching.
|
|
Bills We're Watching
Our bill tracking system, "Bills We're Watching," provides a quick and easy way for our members to stay abreast of all legislation pertinent to business. Short, concise summaries of each bill are provided along with the Chamber's "thumbs-up" or "thumbs-down" position.
Click on the image above to view Bills We're Watching.
|
|
Pro-Business Legislation Lives On
The Virginia Chamber supports the following bills:
Education and Workforce:
- Virginia Virtual School (HB 1400/SB 1240) - establishes the Virginia Virtual School, beginning with the 2019-2020 school year.
- Composition of the Virginia Board of Workforce Development (HB 2341) - Requires at least two of the nine members of the Board of Education to represent business and industry in the private sector in the Commonwealth.
Energy:
- Electric Transmission Facility Approval (HB 1766/SB 1110) - ensures affordable, reliable energy for Virginia businesses by providing a uniform process for approving the construction of certain electric transmission facilities.
- Abandoned Coal Mines-Electricity Generation (HB 1760/SB 1418) - Converts abandoned coal mines into pumped storage generating units which moves water between two reservoirs at different elevations to store energy and generate electricity.
Labor & Employment Law:
- Prevailing Wages/Wage Floor prohibitions
- HB 1596-prohibits state agencies from including prevailing wage provisions in contracts. These provisions drive up the cost of taxpayer-funded contracts and make it easier for out of state contractors to bid.
- HB 1753-Prohibits local governing bodies from requiring a wage floor for contractors above what is required by state or federal law. These local laws can be extremely burdensome for businesses to comply with, especially if a business has multiple locations.
Regulatory Reform:
- Economic impact of proposed regulations
- SB 916-requires state agencies to file all guidance documents that they rely upon so that the regulated community has access
- HB 1731-requires agencies to email impacted stakeholders at the beginning and final stage of regulation to create transparency and openness
- HB 1943/SB 1431-requires the Department of Planning and Budget to seek input from businesses and do a comprehensive analysis on a regulation's impact on businesses
Small Business
- SWAM Certification Appeal (HB 1530) - Provides employers the right to appeal Dept. of Small Business & Supplier Diversity denial of SWAM certification or revocation
- SWAM Certification from Other States (HB 1858) - Requires the Dept. of Small Business & Supplier Diversity to adopt a process to accept SWAM certified employers in other states
Technology:
- Virginia Broadband Deployment Act (HB 2108) - Would require municipal broadband authorities to make available to the public records showing how they developed their rates, fees and charges
- Wireless Communications Infrastructure (SB 1282) - Provides a uniform procedure for the way in which wireless communications infrastructure is approved by localities and approved and installed in public rights-of-way.
Transportation:
- Personal delivery devices (delivery robots) (HB 2016/SB 1207) - allows for the operation of electric personal delivery devices on the sidewalks and shared-use paths and across roadways on crosswalks in the Commonwealth
|
|
Anti-Business Legislation Defeated
The Virginia Chamber opposed the following bills, and we are pleased that they have been defeated:
Costly Employer Mandates, such as:
- Minimum Wage Increases--A host of bills to increase Virginia's minimum wage were introduced this session, but they have all been defeated.
- Paid Sick Leave (SB 824) - would have made sick leave benefits mandatory for employers.
- Caregiving days (HB 2126) -would require an employer to provide up to 60 caregiving days per year. This proposal would have cost Virginia employers up to $740 million a year to fund the program and the Commonwealth approximately $14 million to administer the program
- Wage or Salary History Inquiries (HB 2190) - would prohibit a prospective employer from (i) requiring as a condition of employment that a prospective employee provide or disclose the prospective employee's wage or salary history or (ii) seeking the wage or salary history of a prospective employee from the prospective employee's current or former employers. Violations are subject to a civil penalty not to exceed $100 per violation.
- Workers Compensation Reporting (SB 1472) - would create unnecessary paperwork when filing workers comp claims and create a new cause of action against employers.
There were several bills this session (HB 2202, HB 2283, HB 2353, SB 814 and SB 1080) that would have created costly litigation for employers. We are pleased that they have all been defeated.
|
|
Other Items of Note to Virginia Businesses
We are monitoring the following bills which may also have an impact on your business:
- HB 2058-- Provides that storage of inventory in the Commonwealth is sufficient nexus to require out-of-state businesses to collect sales and use tax on sales to customers in the Commonwealth.
- HB 2246/SB 1438-- Establishes the Virginia Tax Amnesty Program to be administered during the 2017-2018 fiscal year for not less than 60 nor more than 75 days. The Program will be open to any taxpayer that is required but has failed to file a return or to pay any tax administered by the Department. All civil or criminal penalties and one-half of the interest assessed or assessable, resulting from nonpayment or nonreporting of tax liabilities will be waived upon payment of the taxes and interest
- HB 2113/SB 1033 requires employers and payroll service providers to notify the Office of the Attorney General after discovery of a compromise in confidentiality related to payroll information. Upon receipt of notice from an employer or payroll service provider, the Office of the Attorney General would notify the Department of Taxation.
- HB 2471/SB 1574-- Restructures the Virginia Economic Development Partnership Authority
- SB 1578 would authorize localities to regulate short-term rentals, such as Airbnb
|
|
Several States Will Start 2017 with Corporate Tax Reductions
Since 2008, 15 states in have reduced their corporate income tax rates. These reductions appear to be a growing trend in state tax policy, as corporate taxes make up a small amount of total tax collections, but have an outsized impact on business location and expansion decisions.
Five states will reduce their corporate income tax rates in 2017:
- North Carolina reduced its corporate tax rate from 4 percent to 3 percent on January 1, as a final installment of a comprehensive tax package that was passed in 2013 and continues to phase in. The state went from one of the highest corporate tax rates in the South at 6.9 percent in 2013 to 6 percent in 2014, then 5 percent in 2015, 4 percent in 2016, and now 3 percent in 2017. The state also lowered its individual income tax rate to 5.499 percent on January 1, down from 7.75 percent just a few years ago.
- Arizona reduced its corporate tax rate from 5.5 percent to 4.9 percent, closing out a multi-year phase down that began in 2015, bringing the tax rate from 6.5 percent to 4.9 percent over that period.
- New Mexico reduced its corporate tax from 6.6 percent to 6.2 percent on January 1. In 2018, the rate will settle at 5.9 percent, down from 7.6 percent in 2013.
- The District of Columbia reduced its corporate tax rate from 9.2 percent to 9.0 percent, as part of the phase-in of an impressive package of revenue-contingent reforms that passed in 2014.
- Finally, Indiana will reduce its corporate tax rate from 6.25 percent to 6.0 percent, but the new rate kicks in on July 1. The state has reduced its corporate tax rate on a schedule every year since 2011, moving from 8.5 percent to ultimately settle at 4.9 percent on July 1, 2021. Indian also paired these reforms with reductions in the individual income tax, a repeal of the estate tax, and reforms to the state's business personal property taxes.
|
House Panel OKs Bill Mandating Sanctions On Frivolous Suits
Sanctions for frivolous federal lawsuits could become mandatory again, if a bill passed by the House Judiciary Committee makes it through the rest of Congress. The Lawsuit Abuse Reduction Act of 2017 from Representative Lamar Smith, R-Texas, would change Rule 11 of the Federal Rules of Civil Procedure to remove judicial discretion from the decision to impose sanctions when a party makes a frivolous claim in court.
"The current lack of mandatory sanctions leads to the regular filing of lawsuits that are baseless," said Representative Bob Goodlatte, chairman of the House Judiciary Committee. "So many frivolous pleadings currently go under the radar because the lack of mandatory sanctions for frivolous filings forces victims of frivolous lawsuits to roll over and settle... because doing that is less expensive than litigating the case to a victory in the court."
|
General Assembly Resources
|
Interested in International Expansion? Take Advantage of VITAL!
The Virginia Chamber is proud to partner with the Virginia Economic Development Partnership on VITAL, the Virginia International Trade Alliance. As a VITAL partner, our member companies have access to steeply discounted rates for international market research as well as international trade shows and international trade missions facilitated through VEDP.
Click below for more information:
If you or a company that you work with is interested in learning more about VITAL, please contact Samantha Quig, Corporate Communications Director, at [email protected] or 804-237-1457.
|
|
Keep up with the Virginia Chamber on Twitter!
|
|
| |
|
