WEEK 3 IN THE VIRGINIA GENERAL ASSEMBLY
The Virginia General Assembly this week enters its final full week before “crossover,” the time after which the House and Senate may only consider legislation originating from the other chamber. Last week, each Chamber moved through a significant volume of bills and the frenetic pace will continue in the week to come.
The Northern Virginia Chamber maintains its full time presence in Richmond over the course of the session, advocating on behalf of Chamber priorities and bills that will advance the interests of Northern Virginia and its business community. To see the Chamber’s 2019 Legislative Agenda, visit the Chamber’s website
Lobby Day and Viva Virginia
The Chamber hosted its annual Lobby Day and Viva Virginia Legislative Reception on Thursday, January 26th. Twenty Chamber members made the trip to Richmond to meet with General Assembly leaders and senior cabinet members in the Northam Administration. Chamber members spent the morning visiting the offices of Speaker Kirk Cox, Senate Minority Leader Dick Saslaw, House Majority Caucus Chairman Tim Hugo, House Minority Leader Eileen Filler-Corn, Delegate Mark Sickles, and Delegate Rip Sullivan. In the afternoon, Secretary of Finance Aubrey Layne provided members with an overview of Virginia’s finances and economy, and Secretary of Transportation Shannon Valentine detailed transportation projects and initiatives in Northern Virginia and across the Commonwealth.
The Chamber’s annual legislative reception – Viva Virginia – provided a relaxed atmosphere for business leaders and elected leaders to engage and network. In addition to many leaders from the General Assembly, Lieutenant Governor Justin Fairfax and Attorney General Mark Herring joined us for a fun evening. Special thanks once again this year to Chamber past Chairman Gary Nakamoto of The Nakamoto Group for sponsoring the reception.
Tax Conformity and Internet Sales Tax
One of the major issues the legislature and the Northam Administration will be contending with this session is the issue of conforming Virginia’s tax code to last year’s federal Tax Cut and Jobs Act. As a conformity state, Virginia typically conforms its tax laws with the federal code each year, however with such a dramatic change at the federal level last year the policy questions are much more substantial.
First thing Monday morning, the House Finance Committee will consider six bills related to tax conformity, tax policy, and internet sales tax. Last week, the Senate Finance Committee had similar bills on their docket and delayed their full consideration (i.e., passed by) until this week.
The Chamber supports state conformity with the 2017 federal Tax Cut and Jobs Act to simplify tax filing for Virginia companies. Such conformity, however, may negatively impact Virginia businesses through increases in tax liability which should be addressed by other tax reform efforts as part of the conformity process.
A coalition led by a number of businesses across Virginia, supported by the Northern Virginia Chamber as well as the Virginia Chamber, would recommend the Commonwealth preserve the deductibility at the state level of 2 items: Global Intangible Low Tax Income (GILTI) (overseas income) and Net Interest Deduction. Not doing so will make Virginia less competitive in attracting and retaining businesses. Adding the deductions represents a continuation of existing policy and avoids a tax increase for many businesses in Virginia. There are a number of House and Senate stand-alone bills that address this particular policy.
Proffer Reform
One of the priority issues for the Northern Virginia Chamber this session is addressing the Commonwealth’s proffer regime – the system that outlines how local governments and the development community collaborate to mitigate the impact of development.
Chamber-supported Senate Bill 1373 (Senator Barbara Favola) passed the Senate last week 29-10-1 and has been referred to the House Counties, Cities, and Towns (CCT) committee. CCT reported the House companion to this bill, House Bill 2342 (Delegate Bob Thomas) 18-2. That bill passed the House last week 90-7. As both of these bills have pass their chambers by significant margins these bills look to be on their way to Governor Northam’s desk barring any significant issues. Once in law, this policy change will remove a significant impediment to our region’s ability to match our housing needs with our workforce growth.
Economic Development
The Northern Virginia Chamber is supporting the Amazon incentive bills – House Bill 2356 (Jones/James)/Senate Bill 1255 (Ruff/Saslaw) – as well as the related education and workforce investment bills – House Bill 2490 (Rush) and Senate Bill 1617 (Ruff/Saslaw). Additionally, the Chamber supports the Micron incentive bills – Senate Bill 1370 (Norment) and House Bill 2180 (Rush). These investments will deliver thousands of new jobs to our region, as well as significant investment in workforce development and education focused on regionally-significant, in-demand sectors.
Senate Bill 1255, the Senate version of the Amazon incentive bill, passed the Senate 35-5, crossed over, and last week was reported to the House floor by the House Appropriations Committee on a vote of 19-0. The House will vote on the incentive bills this week and will likely be on their way to the Governor’s desk for his signature.
Early Childhood Education
The Chamber supports efforts this session to streamline and better deliver early childhood education programs. The Northern Virginia Chamber supports investment in, and improved access to, high quality early childhood education--a key determinant of school readiness, career readiness, and Virginia’s ability to build a competitive workforce. Data-driven investments in this area - that leverage the private sector where appropriate – will reap dividends for the Commonwealth and its ability to grow, attract, and retain business and a skilled workforce. House Bill 2458 (Landes/Bulova) and Senate Bill 1313 (Dunnavant) meets many of these goals and sets the Commonwealth in a position to lead in the delivery of early childhood education.
House Bill 2458 was reported from the House Education committee last week on a vote of 20-1 and referred to the Appropriations committee to consider any fiscal impact to the Commonwealth. The Northern Virginia Chamber will communicate its support of the bills to the committee and the prudent investment of the Commonwealth in this space.
Anti-Business Climate Bills
The Northern Virginia Chamber maintains a full time presence in Richmond during the General Assembly session. Each Friday morning at 8:00 AM, the Chamber hosts a 30-minute weekly update call that is open to the entire Chamber membership. For more information, and to sign up, please contact Mike Forehand, Senior Vice President of Government and Public Affairs, at mforehand@novachamber.org.
The Northern Virginia Chamber maintains its full time presence in Richmond over the course of the session, advocating on behalf of Chamber priorities and bills that will advance the interests of Northern Virginia and its business community. To see the Chamber’s 2019 Legislative Agenda, visit the Chamber’s website
Lobby Day and Viva Virginia
The Chamber hosted its annual Lobby Day and Viva Virginia Legislative Reception on Thursday, January 26th. Twenty Chamber members made the trip to Richmond to meet with General Assembly leaders and senior cabinet members in the Northam Administration. Chamber members spent the morning visiting the offices of Speaker Kirk Cox, Senate Minority Leader Dick Saslaw, House Majority Caucus Chairman Tim Hugo, House Minority Leader Eileen Filler-Corn, Delegate Mark Sickles, and Delegate Rip Sullivan. In the afternoon, Secretary of Finance Aubrey Layne provided members with an overview of Virginia’s finances and economy, and Secretary of Transportation Shannon Valentine detailed transportation projects and initiatives in Northern Virginia and across the Commonwealth.
The Chamber’s annual legislative reception – Viva Virginia – provided a relaxed atmosphere for business leaders and elected leaders to engage and network. In addition to many leaders from the General Assembly, Lieutenant Governor Justin Fairfax and Attorney General Mark Herring joined us for a fun evening. Special thanks once again this year to Chamber past Chairman Gary Nakamoto of The Nakamoto Group for sponsoring the reception.
Tax Conformity and Internet Sales Tax
One of the major issues the legislature and the Northam Administration will be contending with this session is the issue of conforming Virginia’s tax code to last year’s federal Tax Cut and Jobs Act. As a conformity state, Virginia typically conforms its tax laws with the federal code each year, however with such a dramatic change at the federal level last year the policy questions are much more substantial.
First thing Monday morning, the House Finance Committee will consider six bills related to tax conformity, tax policy, and internet sales tax. Last week, the Senate Finance Committee had similar bills on their docket and delayed their full consideration (i.e., passed by) until this week.
The Chamber supports state conformity with the 2017 federal Tax Cut and Jobs Act to simplify tax filing for Virginia companies. Such conformity, however, may negatively impact Virginia businesses through increases in tax liability which should be addressed by other tax reform efforts as part of the conformity process.
A coalition led by a number of businesses across Virginia, supported by the Northern Virginia Chamber as well as the Virginia Chamber, would recommend the Commonwealth preserve the deductibility at the state level of 2 items: Global Intangible Low Tax Income (GILTI) (overseas income) and Net Interest Deduction. Not doing so will make Virginia less competitive in attracting and retaining businesses. Adding the deductions represents a continuation of existing policy and avoids a tax increase for many businesses in Virginia. There are a number of House and Senate stand-alone bills that address this particular policy.
Proffer Reform
One of the priority issues for the Northern Virginia Chamber this session is addressing the Commonwealth’s proffer regime – the system that outlines how local governments and the development community collaborate to mitigate the impact of development.
Chamber-supported Senate Bill 1373 (Senator Barbara Favola) passed the Senate last week 29-10-1 and has been referred to the House Counties, Cities, and Towns (CCT) committee. CCT reported the House companion to this bill, House Bill 2342 (Delegate Bob Thomas) 18-2. That bill passed the House last week 90-7. As both of these bills have pass their chambers by significant margins these bills look to be on their way to Governor Northam’s desk barring any significant issues. Once in law, this policy change will remove a significant impediment to our region’s ability to match our housing needs with our workforce growth.
Economic Development
The Northern Virginia Chamber is supporting the Amazon incentive bills – House Bill 2356 (Jones/James)/Senate Bill 1255 (Ruff/Saslaw) – as well as the related education and workforce investment bills – House Bill 2490 (Rush) and Senate Bill 1617 (Ruff/Saslaw). Additionally, the Chamber supports the Micron incentive bills – Senate Bill 1370 (Norment) and House Bill 2180 (Rush). These investments will deliver thousands of new jobs to our region, as well as significant investment in workforce development and education focused on regionally-significant, in-demand sectors.
Senate Bill 1255, the Senate version of the Amazon incentive bill, passed the Senate 35-5, crossed over, and last week was reported to the House floor by the House Appropriations Committee on a vote of 19-0. The House will vote on the incentive bills this week and will likely be on their way to the Governor’s desk for his signature.
Early Childhood Education
The Chamber supports efforts this session to streamline and better deliver early childhood education programs. The Northern Virginia Chamber supports investment in, and improved access to, high quality early childhood education--a key determinant of school readiness, career readiness, and Virginia’s ability to build a competitive workforce. Data-driven investments in this area - that leverage the private sector where appropriate – will reap dividends for the Commonwealth and its ability to grow, attract, and retain business and a skilled workforce. House Bill 2458 (Landes/Bulova) and Senate Bill 1313 (Dunnavant) meets many of these goals and sets the Commonwealth in a position to lead in the delivery of early childhood education.
House Bill 2458 was reported from the House Education committee last week on a vote of 20-1 and referred to the Appropriations committee to consider any fiscal impact to the Commonwealth. The Northern Virginia Chamber will communicate its support of the bills to the committee and the prudent investment of the Commonwealth in this space.
Anti-Business Climate Bills
- Single-industry taxes – House Bill 1703 (Guzman) would impose a five-cent tax on a specific airline operator at Dulles Airport for the purpose of paying down Silver Line Phase 2 and Dulles Toll Road Tolls. The Chamber opposes single-industry (and in this case, single company) taxes where the industry opposes the tax.
- Energy Generation Regulations – House Bill 1635 (Rasoul) would establish a moratorium on approval for any new electric generating facilities that generate fossil fuel energy and phases in a 100% clean energy mandate. While the Chamber supports use of renewable energy, across the board mandates that threaten the provision of reliable, affordable energy to our region’s businesses are not productive.
- Net Neutrality - House Bill 1755 (Delegate Lee Carter) is a bill that would seek to implement net neutrality regulations on broadband providers in the Commonwealth. The federal government has expressly preempted state or local activity on this issue, asserting its authority in the regulation of broadband internet access. The purpose of that is to avoid a patchwork of state and local requirements. The Chamber is concerned that this regulation if passed, in addition to violating federal preemption, would stifle technology investment in the Commonwealth and send the wrong message to technology businesses that would look to invest in Virginia.
The Northern Virginia Chamber maintains a full time presence in Richmond during the General Assembly session. Each Friday morning at 8:00 AM, the Chamber hosts a 30-minute weekly update call that is open to the entire Chamber membership. For more information, and to sign up, please contact Mike Forehand, Senior Vice President of Government and Public Affairs, at mforehand@novachamber.org.