SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

2016 SESSION

  • print version
Senate Committee on Finance

Co-Chair: Thomas K. Norment, Jr. - Co-Chair: Emmett W. Hanger, Jr.

Clerk: Patty Lung
Staff: Lisa Wallmeyer, Nicole Brenner
Date of Meeting: March 1, 2016
Time and Place: Tuesday, March 1, 2016, Senate Room B, 9:00am
Revised to include HB 29, HB 30 and HB 812

H.B. 2

Patron: O'Quinn

Clean Power Plan; state implementation plan; General Assembly approval. Requires the Department of Environmental Quality to receive approval from the General Assembly for a state implementation plan to regulate carbon dioxide emissions from existing power plants prior to submitting the plan to the U.S. Environmental Protection Agency for approval.

H.B. 29

Patron: Jones

Budget Bill. Amending Chapter 665 of the 2015 Acts of Assembly.

H.B. 30

Patron: Jones

Budget Bill. Appropriations of the Budget submitted by the Governor of Virginia in accordance with the provisions of § 2.2-1509, Code of Virginia, and to provide a portion of revenues for the two years ending respectively on the thirtieth day of June, 2017, and the thirtieth day of June, 2018.

H.B. 64

Patron: Kilgore

Transmission of case papers to appellate court; acceptability of electronic case papers. Provides that, upon agreement of the general district court and the appellate court, case papers shall be transmitted electronically to the appellate court by an electronic method approved by the Executive Secretary of the Supreme Court, with the exception of exhibits that cannot be electronically transmitted. The bill allows the appellate court, in jurisdictions where an agreement is in effect, to transmit the case papers by electronic submission to the general district court where the case is to be returned to such court. The bill has a delayed effective date of January 1, 2017.

H.B. 256

Patron: McQuinn

Relief; Robert Scott. Provides relief in the amount of $26,367.50 to Robert Scott from the Motor Vehicle Transaction Recovery Fund because Mr. Scott did not meet the statutorily required time-frame to submit his claim to the Fund. Mr. Scott would have been eligible for $20,000 per transaction minus the $13,632.50 received from a bond payout but was unable to file a claim until he received the bond payout in February 2012. Mr. Scott has an unpaid final judgment from Towne Automotive Brokers and Francis Masika, awarded in 2010, and would have to reimburse the Fund for any amounts received as a result of the judgment subsequent to payment from the Fund. The bill contains an emergency clause.

EMERGENCY

H.B. 298

Patron: Kilgore

Coal tax credits.Limits the aggregate amount of credits that may be allocated or claimed for the coal employment and production incentive tax credit to $7.5 million each year. An electricity generator must file an application with the Department of Taxation each year to determine the amount of credits that it may claim or allocate, including credits earned in prior taxable years. If the total amount of approved applications for tax credits for the fiscal year exceeds $7.5 million, the Department of Taxation shall apportion the credits on a pro rata basis.

The bill extends from July 1, 2016, to January 1, 2020, the date by which coal employment and production incentive tax credits must be earned in order to be allocated to persons with an economic interest in coal. The bill also extends the sunset date of the coalfield employment enhancement tax credit through taxable year 2019.

H.B. 339

Patron: Pogge

Recordation tax; exemption. Provides an exemption from ecordation tax for any deed of trust that secures a loan made by a locality to a borrower whose household income does not exceed 80% of the area median household income established by the U.S. Department of Housing and Urban Development for the purpose of erecting or rehabilitating a home for such borrower, including the purchase of land for such home.

H.B. 420

Patron: Helsel

Auxiliary grants; regulations. Clarifies that regulations adopted by the Commissioner of the Department for Aging and Rehabilitative Services shall establish auxiliary grant rates for adult foster care homes and licensed assisted living facilities, the process for reporting and certification, and services to be provided to auxiliary grant recipients and paid for using auxiliary grant funds. The bill eliminates specific requirements for regulations related to reporting certain allowable costs and resident charges, the time period for reporting such costs, forms to be used, financial reviews, and audits of reported costs, and clarifies processes for calculating auxiliary grant rates.

H.B. 476

Patron: Fariss

Submission of animal intake policy. Requires animal control officers, humane investigators, and releasing agencies to include a description of their animal intake policy in their annual report to the State Veterinarian regarding animals in their custody.

H.B. 568

Patron: Cox

Virginia Guaranteed Assistance Program; grants. Makes several changes to the Virginia Guaranteed Assistance Program (Program), including adding requirements that (i) each student eligible for the Program receive a grant from the institution's appropriations for undergraduate student financial assistance before grants are awarded to students with equivalent remaining need, (ii) each eligible student receive a grant in an amount greater than other grants awarded to students with equivalent remaining need, (iii) each eligible student receive a Program grant in an amount greater than the grant of each eligible student with equivalent remaining need in the next-lowest class level, and (iv) each Program grant be determined by a proportionate award schedule adopted by each institution and vary according to each student's remaining need and the total of tuition, fees, and other necessary charges, including books.

H.B. 675

Patron: Peace

Auxiliary grants; supportive housing. Extends eligibility for auxiliary grants to include individuals residing in supportive housing, provided that the supportive housing provider has entered into an agreement for the provision of supportive housing with the Department of Behavioral Health and Developmental Services. The bill establishes requirements for providers of supportive housing that enter into agreements with the Department.

H.B. 700

Patron: Sullivan

Claims; Michael Kenneth McAlister. Provides relief in the amount of $1,268,694 to Michael Kenneth McAlister, who was incarcerated from 1986 until 2015 after being convicted of crimes of attempted rape and abduction with intent to defile. Another suspect confessed to the crimes in April 2015, and in May 2015 Governor McAuliffe granted Mr. McAlister's request for absolute pardon. Mr. McAlister's relief would be paid as follows: (i) an initial lump sum of $253,740 to be paid within the 60 business days immediately following the execution of a release by Mr. McAlister from any present or future claims he may have and (ii) the sum of $1,014,954 to purchase an annuity before October 1, 2016, for the primary benefit of Mr. McAlister with the terms structured in his best interests.

H.B. 760

Patron: Freitas

Auditor of Public Accounts; Commonwealth Data Point. Requires the Auditor of Public Accounts (the Auditor) to incorporate in the Commonwealth Data Point the following enhancements: (i) graphs, charts, or other visual displays of aggregated data showing (a) current state spending by expense category, (b) year-to-year state spending, and (c) other data deemed appropriate by the Auditor, including display of available line item expenditures, and (ii) frequently asked questions and their responses. The bill also requires the Commonwealth Data Point to contain a listing of the position description and salary of each full-time state employee, organized by agency.

H.B. 812

Patron: Peace

Limited Residential Lodging Act; penalty. Establishes the Limited Residential Lodging Act (the Act), which allows property owners to rent out their homes or portions thereof for charge for periods of less than 30 consecutive days or do so through a hosting platform, under certain circumstances. The hosting platform may register with the Department of Taxation, in which case the hosting platform is responsible for the collection and remittance of all applicable taxes on behalf of the property owner. The bill defines "limited residential lodging," "booking transaction," and "hosting platform" and provides for penalties for violations of the Act. The bill also requires the Housing Commission to convene a work group with representation from the hotel industry, hosting platform providers, local government, state and local tax officials, property owners, and other interested parties to explore issues related to expansion of the framework set forth in the bill related to the registration, land use, tax, and other issues of public interest associated with the short-term rental of dwelling and other units that are not a person's principal residence. The work group shall take into consideration existing structures governing the activities of bed and breakfast inns, vacation rentals, and other transient occupancy venues. The work group shall complete its work by December 1, 2016, with the goal of developing draft legislation for consideration by the 2017 Session of the General Assembly.

H.B. 858

Patron: Landes

Virginia International Trade Authority. Establishes the Virginia International Trade Authority to promote international trade in the Commonwealth by coordinating private and public efforts to stimulate the international trade segment of the state's economy and marketing products and services. The bill also requires the Authority to provide to the General Assembly by November 1, 2016, a plan for the establishment of a coalition of organizations providing international trade programs and services in the Commonwealth.

H.B. 859

Patron: Landes

Sales and use tax exemption; beer-making equipment. Provides a sales and use tax exemption for machinery, tools, equipment, and materials used in the commercial production of beer and materials such as labels and boxes for future use in packaging the beer for shipment or sale.

H.B. 884

Patron: Hugo

Research and development expenses tax credits. Modifies the existing research and development expenses tax credit and creates a similar tax credit for businesses with Virginia research and development expenses in excess of $5 million for the taxable year. The bill changes the existing tax credit by (i) extending the expiration date from January 1, 2019, to January 1, 2022, (ii) increasing the credit from 15 percent of the first $234,000 of the business's Virginia qualified research and development expenses that exceed a base amount to 15 percent of the first $300,000 of such expenses and from 20 percent of the first $234,000 of such expenses to 20 percent of the first $300,000 of such expenses if the research and development was conducted in conjunction with a Virginia college or university, (iii) establishing an alternative computation for the tax credit at the election of the taxpayer beginning with taxable year 2016, and (iv) increasing from $6 million to $7 million the maximum amount of tax credits that may be granted by the Department of Taxation for each fiscal year beginning with fiscal year 2017.

Under current law, a taxpayer is allowed a refundable credit equal to (a) 15 percent of the first $234,000 of the taxpayer's Virginia qualified research and development expenses that exceed a base amount or (b) if the research and development was conducted in conjunction with a Virginia college or university, 20 percent of the taxpayer's first $234,000 in Virginia qualified research and development expenses that exceed a base amount. Under the alternative computation established by the bill for the existing credit, the taxpayer will be allowed a refundable tax credit equal to 10 percent of the difference of (1) the taxpayer's Virginia qualified research and development expenses for the current taxable year and (2) 50 percent of such taxpayer's average Virginia qualified research and development expenses for the immediately preceding three taxable years. If the taxpayer did not pay or incur Virginia qualified research and development expenses in any one of the immediately preceding three years, the credit will equal five percent of the taxpayer's Virginia qualified research and development expenses for the current taxable year. The maximum credit allowed to a taxpayer each year under the alternative computation will be $45,000 or $60,000 if the research and development was conducted in conjunction with a Virginia public or private college or university.

The bill also creates a new tax credit beginning with taxable year 2016 for businesses with Virginia research and development expenses in excess of $5 million for the taxable year. The new tax credit will include the same elements as described above for the alternative computation, except that it is not refundable and there is no annual limit on the maximum amount of credits allowed to the taxpayer. In addition, the Department may grant up to $20 million in tax credits each fiscal year beginning with fiscal year 2017. The amount of the new tax credit that may be claimed by the taxpayer for each year will be limited to 75 percent of the taxpayer's Virginia income tax liability for the year. Any unused credit for the year may be carried forward and applied against the taxpayer's income taxes in the next 10 succeeding taxable years. The new research and development expenses tax credit expires January 1, 2022. The bill prohibits a taxpayer from claiming a credit for expenses incurred using embryonic stem cells.

The bill prohibits a taxpayer from claiming both the existing and new research and development expenses tax credit for the same taxable year.

 

H.B. 910

Patron: Minchew

Appeal of local tax assessments; confidentiality. Provides that, prior to the release of any confidential tax information pursuant to a discovery order, with regard to an application for relief to a circuit court to correct erroneous assessments of local taxes, the court shall issue an order stating that no entity or person who has obtained such confidential information shall disclose, exhibit, or discuss the information except as otherwise provided in the order. The bill requires that any outside expert or person who may be called as a witness given access to such confidential information be required to sign an acknowledgment of the order and agree to be bound by its terms and subject to the jurisdiction of the court for its enforcement.

H.B. 1012

Patron: Massie

Virginia College Building Authority; projects; participating institutions. Permits any organization that is exempt from federal income taxation pursuant to § 501(c)(3) of the Internal Revenue Code and that is owned or controlled by a public institution of higher education in the Commonwealth or whose purpose is to support or otherwise benefit a public institution of higher education in the Commonwealth to finance projects through the Virginia College Building Authority.

H.B. 1017

Patron: Massie

Education improvement scholarships tax credit; reporting and other requirements. Modifies the tax credit by (i) making the current required report of donations qualifying for the credit and scholarships awarded from such donations as of June 30, (ii) increasing from 20 to 40 the number of days by which a scholarship foundation is required to return a preauthorization notice to the Department of Education to certify that a donor has completed his donation to the foundation, (iii) increasing from 14 to 21 the number of days by which a scholarship foundation must convert a donation of marketable securities into cash, (iv) lowering the penalty for failure to disburse 90 percent of tax credit-derived donations within the applicable twelve month period from 200 percent to 100 percent of the difference between 90 percent of the donations and the actual amount disbursed, and (iv) making clarifying and technical amendments.

Under current law, a scholarship foundation must provide a report each year by September 30 to the Department of Education showing the total number and value of donations it received in its most recent fiscal year ended. Under the bill, every scholarship foundation will report on donations received in the 12-month period ending on June 30 of each year. This change will enable the Department of Education to determine whether a scholarship foundation has complied with the statutory requirement to disburse at least 90 percent of its tax-credit-derived funds received during each 12-month period ending on June 30 by the following June 30 for educational scholarships.

The bill clarifies that the annual audit, review, or compilation required of a scholarship foundation receiving tax-credit-derived funds is for the foundation's most recent fiscal year ended. Finally, the bill eliminates (a) redundant reporting requirements relating to the total number and dollar value of donations received by a foundation and the total number and dollar amount of educational scholarships awarded by a foundation and (b) the requirement that a scholarship foundation report the percentage of first-time recipients to whom educational scholarships are awarded.

H.B. 1191

Patron: Knight

Sales and use tax exemption; certain items in sheriffs' correctional facilities. Exempts from sales and use tax items sold by a sheriff at a local correctional facility to inmates and sales of prepared food within the correctional facility.

H.B. 1237

Patron: Loupassi

Richmond Metropolitan Transportation Authority; powers. Authorizes the Richmond Metropolitan Transportation Authority (RMTA) to construct, own, and operate coliseums and arenas, including facilities reasonably related to such coliseums and arenas, provided that the governing authorities of the localities that make up the RMTA approve.

H.B. 1305

Patron: Miller

Sales and use tax exemption and real and personal property tax exemption; solar and wind energy equipment, facilities, and devices. Provides a sales and use tax exemption for machinery, tools, and equipment of a public service corporation used to generate energy derived from sunlight or wind. The sales and use tax exemption expires June 30, 2027.

The bill also alters the types of projects of solar photovoltaic (electric energy) systems that qualify for the real and personal property tax exemptions on photovoltaic equipment and facilities. The full exemption is for such equipment and facilities used in (i) projects equaling 20 megawatts or less for which an initial interconnection request form is filed on or before December 31, 2018; (ii) projects equaling 20 megawatts or less that serve a public institute of higher education or a private college; and (iii) projects equaling 5 megawatts or less for which an initial interconnection request form is filed on or after January 1, 2019.  The exemption  is for 80% of the assessed value of such equipment and facilities used in (i) projects greater than 20 megawatts first in service on or after January 1, 2017; and (ii) projects greater than 5 megawatts for which an initial interconnection request form is filed on or after January 1, 2019 and .   Under current law, the property tax exemption is for projects equaling 20 megawatts. The exemption for  projects greater than 20 megawatts shall not apply to projects upon which construction begins after January 1, 2024.

 

H.B. 1345

Patron: Jones

Line of Duty Act. Revises the Line of Duty Act (the Act) by codifying revisions to the Act from the appropriation act and, among other changes, transferring overall administration of the Act to the Virginia Retirement System, transferring administration of health insurance benefits under the Act to the Department of Human Resource Management, and creating the Line of Duty Health Benefits Plan, a separate health benefits plan for beneficiaries under the Act. The bill has a delayed effective date of July 1, 2017.

H.B. 1376

Patron: LeMunyon

Claims; Paul R. DesRoches II. Provides relief in the amount of $20,000 to Paul R. DesRoches II from the Virginia Real Estate Transaction Recovery Fund. A real estate firm fraudulently collected rent on behalf of Mr. DesRoches for several months without submitting the funds to him. Mr. DesRoches obtained a judgment against the firm and in 2012 subsequently filed a claim under the Virginia Real Estate Transaction Recovery Act (the Act). At that time, in order to recover under the Act, the judgment had to be based on improper or dishonest conduct. While the factual basis for the judgment detailed conduct included under the definition of "improper or dishonest conduct" contained in the Act, the claim was denied by the Real Estate Board in March 2013 because the words "improper or dishonest conduct" did not appear on the face of the judgment. In 2015, the General Assembly amended the Act to provide a means for the Real Estate Board to determine what constitutes improper or dishonest conduct based on the facts of the case if the judgment order is otherwise silent.