A MEMBERS ONLY PUBLICATION
February 9, 2024
2024 General Assembly, Week 3 Summary
By Nick Clemente, Chamber Vice President, Government Relations
With the conclusion of Week 4, 2024 Virginia General Assembly's is officially halfway over! and we are now fast approaching February 13th's crossover. Crossover is this Tuesday, February 13th and, at this point, the House of Delegates and state Senate must complete the work on their own bills - aside from the budget. Surviving bills "crossover" to the other chamber for consideration before March 9th's adjournment.

This week, I am going to start with a special congratulations to Scott McGeary. Then I’ll provide an update of topline stories. Then I’ll provide details about the bills we are closely tracking. If you are tracking a bill not represented here, please contact me at nclemente@novachamber.org.
A Man Worth Celebrating: Scott McGeary
This week, the House of Delegates and State Senate passed SJ 69 commending Scott McGeary. The bill was patroned by Senator Barbara Favola, Delegate Patrick Hope and many additional elected officials who admire Scott and his years of contributions to the Commonwealth. The resolution contains notable language, including, “for a total of 20 years over a 29-year period, Scott McGeary ably represented the residents of Arlington as a member of the Arlington Electoral Board.”

On a personal note, as a former candidate for elected office, I know how hard our electoral boards work to ensure our Democratic process in America works. They often work long hours and take time away from their families and careers because they are dedicated to America, their states, and their localities. The Chamber and I are so proud that Scott was recognized for his commitment to Democracy!

Another line of the resolution worth noting is, “Scott McGeary chaired the Arlington Chamber of Commerce and worked with the Northern Virginia Chamber of Commerce, the Loudoun County Chamber of Commerce, the Prince William County Chamber of Commerce, and the Virginia Chamber of Commerce.”

Scott’s dedication to his community and our Region, shown through his serving on not one but several Chambers of Commerce, is remarkable. I can speak for several dozen Chamber Government Relations professionals in our Region, who would not be who we are today without Scott’s support, guidance, and mentorship. Furthermore, I believe that no one has had an impact on Northern Virginia quite like Scott. I am lucky to call him a friend, a mentor, and someone who I deeply admire.

I want to encourage all our Chamber members to reach out and congratulate Scott on a well-deserved honor!

Scott is Director, State Public Policy, with Washington Gas and the Chamber's NOVABIZPAC Chairman.
TOPLINE UPDATES
Potomac Yard Entertainment District
As noted in previous Weekly Summaries, one of the Chamber’s top priorities this session is bringing the Washington Capitals and Wizards to Virginia. This week, Chamber CEO and President Julie Coons discussed the importance of this monumental opportunity with DCist news publication, which you can see here.

We continue to actively meet with legislators to express our support for Appropriations Chair Luke Torian (HB 1514) and Senator Majority Leader Scott Surovell (SB 718) which, will create an authority to finance the sports and entertainment district. This week, we met with the House Transportation Chair, Delegate Karrie Delaney and the Senate Transportation Chair, Senator Jennifer Boysko. In addition to meeting with these Democratic Leaders, we also met with Senator Suhas Subramanyam. Furthermore, we met with several Republican members, including Senator Travis Hackworth, Senator Todd Pillion, Delegate Jay Leftwich, and Delegate Paul Milde. Most notably, in our meeting with Delegate Terry Kilgore, he told us he sees this project as a “win-win.”
In all these meetings, we expressed that this is a tremendous opportunity for the Commonwealth. Currently, we feel cautiously optimistic about the arena deal based on the positive interactions we had this week. Based on our conversations and our efforts over the last few weeks, we believe this deal will move forward by crossover. That said, there is plenty of work left to get this to the finish line.
Metro Update
The Chamber is continuing to work with the Northern Virginia Transportation Alliance (NVTA) to find a sustainable path for WMATA. Our concerns about Metro’s fiscal mismanagement and their inability to fix their structural issues were validated in their recently revised FY 25 and FY 26 budget. Even with wages completely frozen, Metro’s operating expenses will still grow by 3% per year in FY25 and FY26. Furthermore, the assumption that Virginia will contribute an additional $39 million in FY26 on top of our existing commitment of $130 million, demonstrated the urgency of tying stop-gap funding to an independent commission. We will continue working with the General Assembly to establish a financial oversight entity. However, for the commission to be successful it needs robust resources and expertise to develop a solution for long-term success.

The Chamber and NVTA strongly believe the commission would have to have representation from labor and business groups. To ensure WMATA management is financially responsible, the voices of transit workers and businesses need to have a seat at the table. This diverse perspective will provide a holistic approach to the mistakes of the past with an eye toward the changing dynamics of our region.

Our position is motivated by ending the cycle of short-term political victories at the expense of long-term stability for workers and businesses. We believe that Senator Adam Ebbin, SJ 28 and Delegate Vivian Watts, budget amendment (Item 1 #7h) provide an opportunity to do the needed evaluation of WMATA management mentioned above. Therefore, this week we met with several members of the General Assembly to stress the urgency of a robust, comprehensive, and well-funded evaluation of WMATA’s financial challenges in Senator Ebbin’s resolution and Delegate Watts budget amendment creating a Virginia-based Commission. 

The Chamber and NVTA will continue working with our legislators to address the crises at Metro. We are dedicated to putting the system on a sustainable path for long-term success. The economic competitiveness of Northern Virginia, and the Greater Washington Region depends on it. If we don't evaluate the bigger picture today, we won't have the tools or resources to fix WMATA long-term.

This week I was pleased to meet with Richmond Mayor Levar Stoney to discuss the issues facing the Metro system and explain why a financial oversight commission is the only way we can set Metro on a sustainable path.
Virginia Community College System (VCCS) Update
As noted last week, there are budget amendments that will benefit VCCS that the Chamber strongly supports. Senator Ghazala Hashmi has introduced Item 200 #5s, to provide $198 million to prepare, upskill, and reskill Virginians. It will expand upward mobility opportunities, providing industries with the workers they need. The House budget amendment (Item 200 #1h) is introduced by Delegate Betsy Carr.
The Chamber is also supporting the VCCS effort for G3 expansion. This is a “language only” change and will not cost anything. Senator Jennifer Boysko is carrying the Senate amendment (Item 201 #1s) and Delegate Mark Sickles is carrying the House amendment (Item 201 #1h). These amendments would expand the G3 program to include additional training programs.
Casino/Entertainment District Update
The Chamber has been actively involved with SB 675 introduced by Senator Dave Marsden. In the 2023 General Assembly, we were behind the introduction of the first bills to give the voters of Fairfax County the power to decide if they wanted a casino. The Chamber pro-actively advocated for this opportunity, due to the findings of the 2019 JLARC Study, “Gaming in the Commonwealth.” It can be seen here.

The study noted, “A casino in Northern Virginia, which was not authorized in SB 1126 but examined as part of this study, would increase statewide gaming tax revenue by an estimated additional $155 million (59%) and employ an additional 3,200 workers. A Northern Virginia casino is projected to attract substantial revenue from out-of-state customers and retain in state about $100 million that Virginia residents are currently spending at casinos in other states” (Gaming in the Commonwealth, pg. 5).

The Gaming in the Commonwealth Study also highlighted that, “a Northern Virginia casino likely would be able to support a higher tax rate and would likely not make meaningful additional capital investment or employment at a lower tax rate. Because of the large revenue-generating potential of a Northern Virginia casino, driven by its large local market, a casino operator could likely develop a casino to adequately serve the market area at a 40% tax rate” (pg. 40).

Another rationale behind our proactive engagement in this issue was also analyzed in the Gaming in the Commonwealth Study. Considering the ability for a casino in Northern Virginia to be taxed at 40% compared to the 27% for the other regions that approved casinos, a unique tax structure could be established to fund critical regional priorities such as shifting the conversation of future dedicated transit funding off the backs of residential and commercial property owners to innovative new revenue streams such as a casino. As noted on (pg. 44), “Virginia currently has examples of tax rates that are unique to Northern Virginia (or other regions), including a slightly higher sales tax and a motor fuels tax surcharge.”

Therefore, we are disheartened by the decision of Senate Finance to continue the discussion until next year and initiate another study on the potential economic impact of a casino in Northern Virginia. However, since this matter is concluded, we believe the study should not be narrow in scope. We believe it should also study the potential additional revenue that would be generated from a casino along the Silver Line between Dulles and the District of Columbia line. It is critical that we do not miscalculate the additional economic benefits that would be generated from international businesspeople or tourists who come to the DMV through Dulles. 
NOTEWORTHY LEGISLATION
The following are noteworthy bills that are worthy of flagging for our members.

SENATE BILLS
SB 14 Sales and use tax, local; additional tax authorized in all counties & cities to support schools. PASSED.
Introduced by Senator Jeremy McPike. Would allow local governments to increase their local sales tax by 1% to fund school construction projects if voters approve a referendum. Passed Senate, 27-13. The House version, HB 805 introduced by Delegate Sam Rasoul, passed House Finance, 13-8.

SB 27 Public School Trades Incentive Fund and Program; created and established. PASSED.
Introduced by Senator Bill Stanley. This seeks to restore high school programs for the skilled trades. Passed Senate, 38-0. The Chamber supports this.

SB 555 First-time homebuyer tax credit. DEAD.
Introduced by Senator Angelia Williams Graves. This creates a tax credit between 2024 and 2028 for those who sell their primary residence to a first-time homebuyer. This has been passed by indefinitely. The Chamber supported this.

SB 624 Public education; student literacy measures. PASSED.
Introduced by Senator Louise Lucas. This clarifies the provisions of the Virginia Literacy Act. Passed Senate, 39-0. The Chamber supports this.
HOUSE BILLS
HB 1 Minimum wage; increases wage to $13.50 per hour effective January 1, 2025. PASSED.
Introduced by Delegate Jeion Ward. This increases the minimum wage incrementally to $15.00 by January 1, 2026. Passed House, 51-49, referred to Senate Commerce and Labor. Senate version, SB 1 introduced by Senator Louise Lucas has been referred to Senate Finance. Governor Youngkin has indicated he will veto this bill.

HB 37 Loan repayment programs; creates program for mental health professionals. DEAD.
Introduced by Delegate Nadarius Clark. This creates a loan repayment program for mental health professionals. House Appropriations, subcommittee voted 7-1 to defeat this.

HB 335 Employment; determining wage of tipped employee.
Introduced by Delegate Debra Gardner. Federal law already requires this. Passed 49-47. The Chamber opposes this.

HB 570 Prescription Drug Affordability Board; established, drug cost affordability review, report.
Introduced by Delegate Karrie Delaney and Labor and Commerce voted 12-10 to refer this to Appropriations. Senate version, SB 274 introduced by Senator Creigh Deeds and passed Senate Commerce and Labor 10-5 and referred to Senate Finance. We noted our concerns recently in a letter. You can see it here. The Chamber opposes this.

HB 721 Local anti-rent gouging authority; civil penalty. CONTINUED.
Introduced by Delegate Nadarius Clark. Enables localities to require two months’ notice of any rent increase and restrict them to 7%. This has been continued to next year. The Chamber opposes this.  

HB 800 Public service companies; pole attachments; cable television systems and telecommunications.
Introduced by Delegate Charniele Herring. This will expand broadband access to all Virginians. You can see our letter about why this is a top priority for the Chamber, here. Referred to House Commerce and Labor. The Chamber supports this.

HB 1125 Virginia Business Ready Expedited Permitting Program; established.
Introduced by Delegate Betsy Carr. This allows the Virginia Economic Development Partnership (VEDP) to streamline permitting for mega-site deals. Referred to Appropriations. The Chamber supports this.
Senate Bills
House Bills
CONCLUSION
Thank you for your time. If anyone has any questions or concerns or would like to participate in the weekly update calls on Friday at 8:30 AM, please contact me at nclemente@novachamber.org! 

Sincerely,

Nick Clemente
WE ADVOCATE ON YOUR BEHALF
To find out more about the Chamber's advocacy work, visit us online or contact Nick Clemente, Chamber Vice President, Government Relations, at nclemente@novachamber.org with any questions or concerns.
Northern Virginia Chamber of Commerce
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