VA-West Coalition

Legislative Newsletter
January 20, 2012

Fight Brewing over "Amazon Tax"

Traditional brick and mortar establishments are urging lawmakers to require on-line retailers to collect sales taxes from their customers in Virginia. Late last year, Amazon.com announced plans to invest $135 million to open two distribution centers in the Richmond region that will employ 1,350 people. Despite its physical presence in the Commonwealth, the on-line retailer will not be required to collect and remit state sales taxes. Trade groups representing traditional retailers contend that they face a competitive disadvantage by having to collect state sales taxes. In addition, they point out that the state is forfeiting millions of dollars in sales tax revenue. Amazon counters that its distribution centers are not legally considered retail establishments and are thus not required to collect and remit sales taxes. During the 2010 session, legislation that would have required on-line retailers to collect the state sales tax passed the Senate but was tabled in a House Finance sub-committee. On Wednesday, the Virginia Alliance for Mainstreet Fairness ratcheted up the pressure on lawmakers to close this loophole by releasing a public opinion poll that showed strong support to close the on-line loophole. See more here. Senator Frank Wagner (R-Virginia Beach) has introduced legislation to specify that a dealer that "maintains a distribution center, warehouse, fulfillment center, office, or similar location within the commonwealth that facilitates the delivery of property sold by the dealer to its customers" must collect and remit Virginia sales tax.

Sparring Over Transportation

Update: Governor Releases 2012 Transportation Initiatives

See more here.

During Thursday's morning hour on the House floor, Democrats from Northern Virginia once again raised the issue of traffic congestion and safety in their districts. Delegate Scott Surovell (D-44) pointed out that clogged roads around US Route 1 were having an adverse impact on the economy and quality of life in his region. Deputy House Majority Leader Todd Gilbert (R-15) retorted that the Republican caucus and McDonnell Administration continue to seek creative solutions to meet Virginia's transportation needs. He admonished House Democrats for what he perceived to be their singular focus on tax increases as the only viable solution to this problem.
Earlier in the day, Secretary of Transportation Sean Connaughton briefed members of the House Transportation Committee on a number of significant projects in the Commonwealth. Connaughton reported that approximately $2 billion in projects, mostly maintenance and small construction, were awarded in 2011. He anticipated that $400 million in paving projects would be awarded in 2012. He also stated that 10 PPTA projects were nearing the end of the review process. Finally, Connaughton announced that the first project from the new Virginia Transportation Infrastructure Bank was recently issued to the City of Chesapeake.

Health Insurance Exchange

Within President Obama's 2010 Patient Protection and Affordable Care Act (i.e. health care reform bill) is a provision requiring states to establish a health insurance exchange. This marketplace for insurance is designed (in theory) to stimulate more competition by providing a wider range of health care options. If a state chooses not to set up an exchange, the federal government would assume responsibility for creating and administering the exchange. Several lawmakers have introduced legislation (HB357, HB402, HB464, SB383, SB488) that would create the Virginia Health Benefits Exchange Authority that would establish and operate the Exchange in the Commonwealth. Later this year, the U.S. Supreme Court will hear challenges on the constitutionality of the law. Representatives from the Governor's office contend that Virginia should wait to move forward on setting up its health care exchange until after the Supreme Court decision.

Uranium Mining

Citing the need to move forward prudently in reviewing the impact of uranium mining on public safety and the environment, Governor McDonnell requested that lawmakers delay on further consideration on uranium mining. The Governor asked his Secretaries of Natural Resources, Commerce and Trade and Health and Human Resources to convene a working group, comprised of the appropriate technical staff from the Departments of Health, Environmental Quality, and Mines, Minerals and Energy, to develop a draft regulatory framework on uranium mining for presentation to the Coal and Energy Commission next year. See more here. On Wednesday, the Virginia Coalition and the Alliance for Progress in Southern Virginia hosted a news conference to request a delay in lifting Virginia's 30 year old moratorium on uranium mining, citing the potential adverse impact that such mining could have on the economy in Southside Virginia. Members of the Coalition and Alliance were joined by Delegates Danny Marshall (R-Danville), Don Merricks (R-Martinsville, James Edmunds (R-Charlotte), and Tommy Wright (R-Amelia) and Senators Frank Ruff (R-Clarksville) and Bill Stanley (R-Moneta). See more here and here.

Other Week 2 Highlights

Delayed Autism Bill Advances

Delegate Tag Greason's bill (HB1106) that would grant the Board of Medicine the authority to license Behavior Analysts to evaluate and teach autistic children cleared a final hurdle this week, winning approval from the House Health, Welfare, and Institutions committee on Tuesday. An emergency clause was attached to the bill to speed its passage through the House and Senate to the Governor's desk. The Governor has indicated he plans to sign the legislation. The law would have taken effect this month if not for a technical hang-up over the Board's authority to promulgate regulations for Behavior Analysts.

Honoring Delegate Putney

Former U.S. Senator John Warner stopped by the House of Delegates to wish his former fraternity brother at Washington & Lee University, Bedford Delegate Lacey Putney, congratulations on his 51 year tenure in the General Assembly. Warner, who retired as Virginia's second longest serving member in the U.S. Senate, reminisced about Virginia's legacy of strong state leadership and lamented that he never had the opportunity to serve in the General Assembly. After a brief visit from Governor McDonnell, Delegate Putney thanked Senator Warner for his laudatory remarks.

House (re)Passes Congressional Redistricting Bill

On Tuesday, the Republican redesign (HB251 SB455) of Virginia's 11 Congressional districts was reported from the Senate Privileges & Elections Committee on a pair of 8 -7 party line votes. Democratic Senator Donald McEachin questioned the constitutionality of voting on this legislation in a non-decennial reapportionment year. A representative from the Attorney General's office said nothing in the Virginia Constitution would prevent the General Assembly from moving forward, prompting Roanoke Senator John Edwards to query if the General Assembly could redistrict seats every year. Prior to the vote, McEachin reiterated his claim that the Republican House plan would violate the Voting Rights Act by 'packing' or compressing minority influence into one legislative district. The bill will go to the Governor and then to the federal Justice Department for review.
The Senate Privileges and Elections Committee also advanced Senator Vogel's bill to create a 7-member redistricting commission. Under her legislation (SB446), commission representatives would be selected by the four majority and minority party leaders of the House and Senate and by the state chairmen of the two major political parties. Those six appointees would then appoint the seventh member and chairman of the commission. Members of the commission would prepare redistricting plans subject to General Assembly approval. As Senator Creigh Deeds (D-35) pointed out, a constitutional amendment would be needed to require the General Assembly to follow the Commission's recommendation.

Project Labor Agreement Bill Clears
First Hurdle

On Thursday, Delegate Barbara Comstock's legislation (HB33) that would ban state agencies and recipients of state funds from requiring or prohibiting contractors to enter into union agreements as a condition of winning public contracts was reported from a House General Laws Committee. Similar legislation in the Senate will be considered next week. The bills don't prohibit contractors from voluntarily using union labor. The Chamber spoke in support of this legislation.

Other Headlines

McDonnell Endorses Romney Before S.C. Primary

McAuliffe Visits Democratic Lawmakers

Fact of the Week: 13 Candidates spent $1 million plus in 2011 election cycle. See more here.

Important Session Dates

February 15 - Crossover

March 11 - Adjournment Sine Die

For more information, click here.

Video

To view live video or hear live audio from the House and Senate floor sessions, click here.

VA West is monitoring bills categorized as: ARTS & TOURISM, ECONOMIC DEVELOPMENT, EDUCATION K-12, ENVIRONMENT & ENERGY, GOVERNMENT, HEALTHCARE, HIGHER EDUCATION, IMMIGRATION, OTHER, TAXATION, TRANSPORTATION FUNDING, TRANSPORTATION - AIR, RAIL & HIGHWAY, & WORKPLACE. Bills in Red have been passed by or tabled. Click on the category to go directly to that category. If you have questions about a bill or our position, please contact Tori Williams at twilliams@roanokechamber.orgor 540.983.0700
2012 Legislative Scorecard
Bill Number	Description	Position	Status
ECONOMIC DEVELOPMENT
Cosgrove	HB169 Enterprise Zones; criteria for designation	Support	Assigned App. sub: Economic Development, Agriculture and Natural Resources
Cline	HB243 Virginia Investment Partnership Act; Definitions	Support	Committee on General Laws
Villanueva	HB334 Virginia Public Procurement Act	Monitor	Committee on General Laws; sub: Procurement
Villanueva	HB335 Individual and Corporate Income Taxes; Subtraction for Investment in Small Businesses	Support	Committee on Finance
Kilgore	HB714 Major Business Facility Job Tax Credit	Support	Committee on Finance
Yancey	HB720 Worker Retraining Tax Credit	Support	Committee on Finance
Landes	HB766 Agriculture and Forestry Industries Development Fund	Support	Committee on Agriculture, Chesapeake and Natural Resources
Landes	HB767 Dept. of Business Assistance; Small Business Job Grant Fund	Support	Committee on General Laws
Landes	HB768 Dept. of Business Assistance; Virginia Jobs Investment Plan	Support	Committee on General Laws
Lopez	HB783 Microenterprise Investment Tax Credits	Monitor	Committee on Finance
James	HB841 Major Business Facility Job Tax Credits and Enterprise Zone Job Creation Grants	Support	Committee on Finance
Watkins	SB79 Public Procurement Act; Bid match preference for State businesses	Monitor	Committee on General Laws and Technology
Newman	SB338 Virginia Investment Partnership Act; definitions.	Support	Committee on Finance
Reeves	SB368 Major business facility job tax credit.	Support	Committee on Finance
EDUCATION K-12
Massie	HB321 Income Tax; educational improvement scholarships tax credit	Monitor	Committee on Appropriations
McClellan	Study: JLARC to Study Composite Index	Monitor	Committee Referral Pending
Greason	HB1108 Career and Technical Education Industry Certifications	Monitor	Committee on Education
McClellan	HJ63 Study; Joint Legislative Audit and Review Commission; study Composite Index of Local Ability to Pay.	Monitor	Committee on Rules
Morris	HJ110 Study; efficiency of the regionalization of school divisions and the consolidation of administrative	Monitor	Committee on Rules
Marsh	SJ14 Study: JLARC to Study Composite Index	Monitor	Committee on Rules
ENVIRONMENT AND ENERGY
Knight	HB176Nutrient Credit Certification; regulations	Monitor	Committee on Agriculture, Chesapeake and Natural Resources
Marshall	HB559 Natural Gas Utility Infrastructure	Support	Committee on Commerce and Labor
Sickels	HB883 Income Tax Credit; Solar Energy Equipment Systems	Support	Committee on Finance
Watkins	SB77 Nutrient Credit Certification; regulations	Monitor	Committee on Agriculture, Conservation, and Natural Resources
GOVERNMENT
Massie	HB324 Tax-supported Debt of the Commonwealth	Monitor	Committee on Appropriations
Gilbert	HB390 Creation of New Regulatory Program	Support	Committee on Rules
Filler-Corn	HB698 Posting Conference Report on the Budget	Support	Committee on Appropriations
Robinson	HB994 Broadband Advisory Council	Support	Committee on Science and Technology
McDougle	SB117 Biennial Appropriation Act	Support	Committee on Finance
Plum	HJ116 Constitutional amendment (first resolution); Virginia Redistricting Commission.	Monitor	Committee on Privileges and Elections
Byron	HJ141 Study; JLARC; unfunded federal mandates; report.	Support	Committee on Rules
Obenshain	SB242 Public procurement; agreements with labor organizations.	Support	Committee on General Laws and Technology
Vogel	SB446 Bipartisan Redistricting Commission created.	Support	Committee on Privileges and Elections; Constitutional Reading Dispensed
HEALTHCARE
Miller	HB213 Mandated health insurance benefits; essential benefits package	Support	Committee on Commerce and Labor
Peace	HB264 Interstate Health Care Compact	Monitor	Committee on Commerce and Labor
Wagner	SB518		Committee on Commerce and Labor
HIGHER EDUCATION
Putney	HB54 Higher Educational Institutions Bond Act of 2012	Support	Committee on Appropriations
Colgan	SB31	Support	Committee on Finance
Merricks	HJ97 Study; State Council of Higher Education for Va; management, structure of higher education centers	Monitor	Committee on Rules
Landes	HJ108 Study; JLARC to study cost efficiency in higher education; report.	Monitor	Committee on Rules
IMMIGRATION

TAXATION
Cole	HB10 BPOL Tax	Support	Committee on Finance
Cole	HB24 BOP Tax; Certain localities required to assess on VA taxable income	Support	Committee on Finance
Bell	HB111 Small business job creation tax credit	Support	Committee on Finance
Toscano	HB146 Virginia's Tax Preferences	Monitor	Committee on Rules
Ransone	HB148 Income Tax, corporate; lower rate for certain businesses	Support	Committee on Commerce and Labor
Herring	HB191 Small Businesses; Tax credit for those hiring graduates of Virginia's colleges	Monitor	Committee on Finance
Comstock	HB216 Sales and Use tax exemption; certain computer equipment and enabling software	Support	Committee on Finance
Cline	HB246 Sunset Provisions on State Tax Credits	Support	Committee on Finance
Cline	HB248 Eliminates Virginia's Corporate Income Tax	Monitor	Committee on Finance
Byron	HB460 Corporate Income Tax; single sales factor apportionment for income of manufacturers	Support	Committee on Finance
Cole	HJ52 Study; Reforming Virginia's state and local tax structure	Support	Committee on Rules
Purkey	HB512 Intangible Personal Property Tax; Machinery and Tools	Support	Committee on Finance
Comstock	HB551 Telework Expenses tax credit	Support	Committee on Finance
Englin	HB1030 Minimum Corporate Income Tax	Oppose	Committee on Finance
Anderson	HB1049 STEM Tax Credit	Support	Committee on Finance
Cole	HJ52 Study; Reforming Virginia's state and local tax structure	Support	Committee on Rules
Stanley	SB61 Income Tax; corporate; lower rate for certain businesses	Support	Committee on Finance
Stanley	SB68 Income tax, corporate; creates industrial building rehabilitation tax credit	Support	Committee on Finance
Stanley	SB70 Retail and Sales Use Tax; two-year sales tax moratorium for construction materials and supplies	Support	Committee on Finance
Watkins	SB78 Income Tax, corporate; taxes paid in another state	Support	Committee on Finance
Watkins	SB79		Committee on General Laws and Technology
Herring	SB226 Income tax; capital gains subtraction.	Support	Committee on Finance
Stosch	SB462 Income tax; conformity with � 199 of the Internal Revenue Code.	Support	Committee on Finance
TRANSPORTATION FUNDING /HIGHWAYS
Cole	HB23 Transportation Trust Fund; increases amount of sales and use tax revenue dedicated to Fund	Monitor	Committee on Finance
Ware	HB155 Revenue Sharing Funds for Highways	Monitor	Committee on Transportation
Howell (Algie)	HB393 Motor fuels tax; rate increase	Support	Committee on Finance
Watts	HB422 Transportation Funding and Administration	Monitor	Committee on Finance
Bulova	HB427 Highway Maintenance Funds	Monitor	Committee on Transportation
Albo	HB477	Monitor	Committee on Appropriations
Poindexter	HB542	Support	Committee on Transportation
Marshall	HB575 Transportation Funding; Salem Transportation District	Support	Committee on Appropriations
Merricks	HB585 Income Tax; Small Business Investment Tax Credits	Support	Committee on Finance
Filler--Corn	HB699 Highway Maintenance Funds	Monitor	Committee on Transportation
Yancey	HB723 Transportation Funding and Administration	Monitor	Committee on Appropriations
May	HB802 Transportation Funding: Virginia Pump Toll	Support	Committee on Finance
Marshall	HB827 Transportation Districts; Repeals Allocation Formula	Oppose	Committee on Transportation
Rust	HB876 Motor Vehicle Fuels Sales Tax	Monitor	Committee on Finance
Alexander	HB892 Taxes on Fuels	Monitor	Committee on Finance
Albo	HB899 Transportation Funding; Motor Fuels Tax and Sales and Use Tax Revenue	Monitor	Committee on Finance
Minchew	HB909 Highway Maintenance and Construction	Oppose	Committee on Transportation
Scott	HB983 Motor Fuels Tax Rate	Support	Committee on Finance
Obenshain	SJ2 Constitutional Amendment; Transportation Funds	Support	Committee on Privileges and Elections
Black	SJ6 Constitutional Amendment; Transportation Funds	Support	Committee on Privileges and Elections
Watts	HJ71 Constitutional amendment (first resolution); Transportation Funds.	Support	Committee on Privileges and Elections
TRANSPORTATION AIR , RAIL, OTHER

WORKPLACE
Bell	HJ7 Constitutional Amendment; Right-to-Work	Support	Committee on Privileges and Elections
McDougle	SJ25 Constitutional Amendment: Right to Work	Support	Committee on Privileges and Elections
OTHER
Bell	HB5 Constitutional Amendment: Taking or Damaging of Private Property	Monitor	Committee on Privileges and Elections
Comstock	HB33 Public Procurement: State agency agreements with labor organizations	Support	Committee on General Laws
Crockett-Stark	HB597 Eminent Domain; Lost Profits and Access	Monitor	Committee on Courts and Justice
Bell	HB251 Congressional Redistricting	Support	Committee on Privileges and Elections
Habeeb	HJ47 Commending Milan Tobacconists on the occasion of its 100th anniversary.	Support	Passed by House; Passed by Senate
Obenshain	SB437 Eminent domain; lost profits and access.	Monitor	Committee for Courts of Justice
Bill status is current on the date of the newsletter. To find out the status after that date, click on the bill number. To learn more about a particular bill listed, click on the bill number.

VAWEST Business & Legislative Coalition
210 South Jefferson St.
Roanoke, Virginia 24011
Phone: (540) 983.0700
Fax: (540) 983.0723