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2019 SESSION

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Senate Committee on Finance

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

Clerk: John Garrett
Staff: Lisa Wallmeyer
Date of Meeting: February 12, 2019
Time and Place: 9:00 AM Shared Committee Room B
Updated to add HB 2651 Added HB 2441 and HB 2718

H.B. 1611

Patron: Landes

Virginia College Savings Plan; prepaid tuition contracts; pricing reserves. Provides that in the event that the ratio of the assets of the Virginia College Savings Plan (the Plan) to the obligations of the Plan exceeds 105 percent, the pricing reserve, which the bill defines as the percentage by which the sum of advanced payments to be made pursuant to each prepaid tuition contract of the Plan exceeds the amount estimated to be required to provide tuition at the fixed, guaranteed level that is specified in such prepaid tuition contract, shall not exceed five percent. The bill provides that in the event that the ratio of the assets of the Plan to the obligations of the Plan does not meet or exceed 105 percent, the pricing reserve may exceed five percent but shall not exceed 10 percent. The bill also requires the governing board of the Plan to provide to the House Committee on Appropriations, the Senate Committee on Finance, and the Joint Legislative Audit and Review Commission written notification and a detailed explanation of any change to the pricing reserve within 30 days of such change.

H.B. 1634

Patron: Edmunds

Additional sales and use tax in Halifax County; appropriations to incorporated towns for educational purposes. Authorizes Halifax County to impose an additional local sales and use tax at a rate, not to exceed two percent, as determined by the governing body, if initiated by a resolution of the local governing body and approved by the voters at a referendum. The bill requires the governing body to specify in the enacting ordinance the time period, not to exceed 20 years, for which the tax would be imposed. Revenue from the tax shall be used solely for capital projects for new construction or major renovation of schools in Halifax County.

The bill removes the limit on the amount that Halifax County may appropriate to an incorporated town that has not complied with the provisions of its charter relating to the elections of local officials. Under current law, such amount is limited to the amount the town would have received from local sales and use tax for educational purposes if such election had been held.

H.B. 1639

Patron: Head

Department of Medical Assistance Services; payment for certain services to hospice patients. Directs the Department of Medical Assistance Services to implement a process for direct payment of nursing facility or ICF/MR services for hospice patients receiving services in a nursing facility or ICF/MR if such patient would be eligible for medical assistance for nursing facility or ICF/MR services had he not elected to receive hospice care. The bill provides that payments made to a nursing facility or ICF/MR shall be the full amount that would be paid to the nursing facility or ICF/MR if the individual was not receiving hospice services, and shall not reflect any discount to such rates.

H.B. 1659

Patron: Delaney

Child abuse and neglect; mandatory reporters. Adds to the list of persons who are required to report suspected child abuse or neglect ministers, priests, rabbis, imams, and duly accredited practitioners of any religious organization or denomination usually referred to as a church; however, the bill exempts such clergy members from the mandatory reporting requirement when the information supporting the suspicion of child abuse or neglect (i) is required by the doctrine of the religious organization or denomination to be kept confidential or (ii) would be subject to the exemptions set forth in § 8.01-400 or 19.2-271.3 if offered as evidence in court.

H.B. 1700

Patron: Jones, S.C.

Budget Bill. Amends Chapter 2, 2018 Special Session I Acts of Assembly.

H.B. 1722

Patron: Bloxom

Remote sales and use tax collection; sufficient activity by dealers and marketplace facilitators as to require registration for sales and use tax collection. Directs the Department of Taxation (the Department) to require a remote seller to collect sales and use tax if the seller has more than $100,000 in annual gross revenue from sales in Virginia or at least 200 sales transactions in Virginia and requires a marketplace facilitator, which enables marketplace sellers to sell in Virginia through its marketplace, to collect sales and use tax if its annual gross revenue from facilitated sales in Virginia exceeds $100,000 or it facilitates at least 200 sales transactions in Virginia. The bill provides that the obligation of remote sellers and marketplace facilitators to collect sales and use tax shall not apply to transactions occurring before July 1, 2019.

The bill provides that in administering remote sales and use tax collection, the Department shall provide information to remote sellers to allow them to identify state and local tax rates and exemptions. For auditing purposes, the Department is directed to allow a remote seller to complete a single audit covering all localities. The bill requires the Department to give remote sellers at least 30 days' notice of any change in tax rate.

The bill provides that if a remote seller or marketplace facilitator collects an incorrect amount of tax, it shall be relieved of liability for failure to collect the correct amount if the error is the result of its reliance on information provided by Virginia. The bill also relieves a marketplace facilitator of liability if it collects an incorrect amount of tax based on certain incorrect information provided by a seller or purchaser.

The bill repeals several contingent provisions of previous related bills that would take effect if the United States Congress enacted legislation related to remote sales and use tax collection. The bill contains technical corrections.

H.B. 1816

Patron: Fariss

Land preservation tax credit; allowable time to claim credit. Extends the amount of time a taxpayer is allowed to claim the land preservation tax credit to either (i) December 31 of the second year following the calendar year that the eligible conveyance of land was made or (ii) December 31 of the third year following the calendar year of the conveyance if the conveyance was made by an estate. Under current law, the credit must be claimed by December 31 of the first year following the calendar year of the conveyance.

H.B. 1932

Patron: Ware

Permit fees; mineral mining. Increases from $16 per acre to $18 per disturbed acre beginning July 1, 2019, and increases to $20 per disturbed acre beginning July 1, 2020, $22 per disturbed acre beginning July 1, 2021, and $24 per disturbed acre beginning July 1, 2022, the fee a mining operator must pay when applying for a mining operation permit renewal.

H.B. 2003

Patron: Aird

Major business facility job tax credit; extension; access to information. Extends the sunset date of the major business facility job tax credit from January 1, 2020, to January 1, 2025. The bill also requires the Department of Taxation, for taxable years beginning on and after January 1, 2019, to publish the following information about companies that are using the credit: (i) locations of sites used for major business facilities for which a credit was claimed, (ii) North American Industry Classification System codes used for the major business facilities for which a credit was claimed, (iii) number of qualified full time employees for whom a credit was claimed, and (iv) total cost to the Commonwealth's general fund of the credits claimed.

H.B. 2026

Patron: Stolle

Newborn screening; congenital cytomegalovirus. Directs the Board of Health to amend regulations governing newborn screening to include screening for congenital cytomegalovirus in newborns who fail the newborn hearing screen.

H.B. 2150

Patron: Ingram

Real property tax exemption for the elderly and disabled; improvements to a dwelling. Provides that, for purposes of the real property tax exemption for the elderly and disabled, certain improvements to exempt land and the land such improvements are situated on shall be included as part of the dwelling and exempt from tax.

H.B. 2234

Patron: Robinson

Parental leave benefits. Requires the Department of Human Resource Management (the Department) to implement and administer 12 weeks of paid parental leave benefits for a state employee who becomes the parent of a child either by adoption or by birth of a child. To be eligible, an employee must be a full-time employee with at least one year of continuous state employment. The bill requires employees to take leave within one year of a child's birth or adoption and provides that if two employees are eligible for benefits for the same child, only one shall claim benefits. The bill provides that if an employee is eligible for both parental leave and maternity leave for the same child, parental leave covers the first 12 weeks of leave; thereafter, if the employee provides notification to her employer from her physician that she is unable to return to work, she may receive short-term disability benefits.

H.B. 2279

Patron: Morefield

Department of Forensic Science; purchase of forensic laboratory services. Permits the Department of Forensic Science (the Department) to purchase forensic laboratory services from laboratories located in the Commonwealth that are operated by an institution of higher education located in the Commonwealth or a corporate entity that is wholly owned by an institution of higher education located in the Commonwealth, where such institution meets certain requirements. The bill provides that no contract or agreement may be made with any other laboratory unless the Department requests, and the Department of General Services grants, an exemption in a case where such laboratory does not meet the reasonable requirements of the Department, cannot provide the forensic laboratory services required by the Department, or the Department can purchase forensic laboratory services from another source at a price that is at least 10 percent less or from a laboratory that has received a ranking that is at least 10 percent higher than the ranking of any laboratory of such institution of higher education. The bill also provides that any laboratory that has entered into a contract with the Department for the provision of forensic laboratory services shall be deemed authorized by the Department to conduct certain analyses and examinations of certain trial evidence.

H.B. 2306

Patron: Landes

Long-Term Employment Support Services and Extended Employment Services. Directs the Department for Aging and Rehabilitative Services to make referrals to any employment services organization that provides competitive or commensurate wages and is eligible to receive state-funded Long-Term Employment Support Services or Extended Employment Services. The bill also requires the Department to develop and implement a referral process for individuals who make an informed choice to pursue an employment outcome that is not considered a competitive integrated employment setting by the Department. The bill also establishes the Employment Service Organization Steering Committee as an advisory board in the executive branch of state government. The bill provides that the purpose of the Committee shall be to report to and advise the Commissioner for Aging and Rehabilitative Services on policy, funding, and the allocation of funds to employment services organizations for Long-Term Employment Support Services and Extended Employment Services.

H.B. 2339

Patron: Roem

Department of Taxation; sharing information with the Department of Social Services. Authorizes the Department of Taxation to share tax information with the Department of Social Services as necessary to administer outreach and enrollment for certain tax credits for low-income taxpayers, child support services, and public assistance or social services benefits. Current law limits the information that may be shared to income, filing status, dependents, and federal tax information.

H.B. 2354

Patron: Jones, S.C.

Revenue Stabilization Fund and Revenue Reserve Fund; maximum amounts. Provides that the combined funds in the Revenue Stabilization Fund and Revenue Reserve Fund shall not exceed 15 percent of average income and sales tax revenues for the past three years. Under current law, the amount in the Revenue Stabilization Fund shall not exceed 15 percent of average income and sales tax revenues for the past three years, and the amount in the Revenue Reserve Fund shall not exceed two percent of general fund revenues for the prior year.

H.B. 2356

Patron: Jones, S.C.

Major Headquarters Workforce Grant Fund. Creates the Major Headquarters Workforce Grant Fund. A qualified e-commerce company that makes a capital investment of at least $2 billion in a major headquarters facility in Arlington County and that creates at least 25,000 new full-time jobs with an average annual wage of $150,000 will be eligible for up to $550 million in grants from the Fund. A qualified company may also be eligible for an additional $200 million in grants for creating an additional 12,850 new full-time jobs.

H.B. 2357

Patron: Jones, S.C.

Bonds for institutions of higher education. Authorizes issuance of bonds in an amount up to $17,500,000 for revenue-producing capital projects at institutions of higher education. The bill contains an emergency clause.

EMERGENCY

H.B. 2360

Patron: Jones, S.C.

Governor's required submission of bond bills. Changes the requirement that the Governor submit certain bond bills concurrently with the submission of his Budget Bill, or his gubernatorial amendments to the Budget Bill, to requiring that the Governor ensure that prefiled bond bills will be submitted to the Chairman of the House Committee on Appropriations and the Chairman of the Senate Committee on Finance for such bond legislation. Currently, the Governor is required to submit on the same day his Budget Bill or his proposed amendments thereto are submitted any bond bills authorizing additional indebtedness if the bonds are authorized under or are to be repaid from revenues or appropriations contained in his Budget Bill or his proposed amendments thereto.

H.B. 2440

Patron: Campbell, R.R.

Intangible personal property; classification and exemption of certain business property. Classifies as intangible property, and exempts from taxation, personal property that is employed in a trade or business, has an original cost of less than $25, and is not classified as machinery and tools, merchants' capital, or short-term rental property.

H.B. 2441

Patron: Wilt

Special identification card without a photograph; fee; confidentiality; penalties. Requires the Department of Motor Vehicles to issue a special identification card without a photograph to a person with a sincerely held religious belief prohibiting the taking of a photograph who would otherwise meet the qualifications for a special identification card but also presents an approved and signed IRS Form 4029. The bill allows a special identification card without a photograph to be similar in size, shape, and design to a driver's license but requires (i) that it be clearly distinguishable from a driver's license, (ii) that it not include a photograph of its holder, and (iii) that it clearly state that (a) the card does not authorize the holder to operate a motor vehicle, (b) federal limits apply, and (c) the card is not valid identification to vote. The bill provides that giving false information, concealing a material fact, or otherwise committing a fraud in applying for a special identification card without a photograph is guilty of a Class 2 misdemeanor and that obtaining a special identification card without a photograph for the purpose of committing any offense punishable as a felony constitutes a Class 4 felony. The bill contains technical amendments. This bill is the result of a study conducted by the Department of Motor Vehicles.

H.B. 2482

Patron: Hodges

Land preservation tax credits; operation of facility on donated land; agreements between the Commonwealth and a third party related to donated land. Provides that if Virginia or one of its political subdivisions operates a facility on land donated for a land preservation tax credit, including charging fees for the use of such facility, such operation of a facility shall not disqualify the donation from eligibility for the credit, so long as any fees are used for conservation or preservation purposes. The bill provides that if Virginia or one of its political subdivisions contracts with a third party to manage a facility on donated land, such agreement shall not disqualify the donation from eligibility for the credit, so long as such agreement is for conservation or preservation purposes.

H.B. 2539

Patron: Byron

Sunset date for worker retraining tax credit; worker training investment tax credit. Advances the sunset date of the worker retraining tax credit from January 1, 2022, to January 1, 2019, and creates the worker training investment tax credit to replace it beginning with taxable year 2019. The worker training investment tax credit is a modification of the worker retraining tax credit. Credit is allowed to businesses who provide (i) eligible worker training, defined in the bill, or (ii) manufacturing instruction to students. The provisions relating to manufacturing instruction are identical to those in the expiring worker retraining tax credit.

In order to receive credit for eligible worker training, the business must provide training that (i) grants a workforce credential or (ii) is part of an apprenticeship agreement approved by the Commissioner of Labor and Industry. In addition, the recipient of the training must be a qualified employee or non-highly compensated worker, as defined in the bill. The credit equals 35 percent of the expenses incurred by the business in providing the eligible worker training. For the training of a qualified employee, the maximum credit per employee is $500 and for the training of a non-highly compensated worker, the maximum credit per worker is $1,000.

The manufacturing provisions of the tax credit expire at the end of taxable year 2021, and the eligible worker training provisions of the tax credit expire at the end of taxable year 2023.

H.B. 2540

Patron: Byron

Sales and use tax; reduced rate on essential personal hygiene products. Applies the reduced state sales and use tax rate of 1.5%, which under current law applies only to food purchased for human consumption, to essential personal hygiene products, defined in the bill as (i) nondurable incontinence products such as diapers, disposable undergarments, pads, and bed sheets; and (ii) menstrual cups and pads, pantyliners, sanitary napkins, tampons, and other products used to absorb or contain menstrual flow. The bill has a delayed effective date of January 1, 2020.

H.B. 2550

Patron: Jones, S.C.

Research and development in the Commonwealth. Creates the Commonwealth of Virginia Research Consortium Authority (the Consortium) to oversee and support research and commercialization in the Commonwealth. The Consortium will be advised by an Investment Advisory Committee and a Research and Technology Advisory Committee. Existing grant, loan, and investment funds currently administered by the Innovation and Entrepreneurship Investment Authority and the Virginia Research Investment Committee would be consolidated under the Consortium, and the Consortium would be responsible for the Commonwealth Research and Technology Strategic Roadmap. The Consortium would also be responsible for allocating research-related funds to the Virginia Biosciences Health Research Consortium and the Commonwealth Center for Advanced Manufacturing. The bill repeals the existing Virginia Research Investment Committee and the Innovation and Entrepreneurship Investment Authority.  The Center for Innovative Technology would move under the authority of the Consortium. A stakeholder group would be appointed to oversee the transition to the Consortium, and the Governor would be authorized to appoint an interim chief executive officer of the Consortium based upon the recommendations of the stakeholder group.

H.B. 2651

Patron: Yancey

Virginia Prevention of Sex Trafficking Fund; fees for offenses related to sex trafficking. Establishes the Virginia Prevention of Sex Trafficking Fund to be administered by the Department of Criminal Justice Services for the purpose of promoting awareness of and preventive training and education relating to sex trafficking. The bill requires persons convicted of misdemeanor violations of prostitution, aiding prostitution, and using vehicles to promote prostitution to pay a $100 fee and persons convicted of certain felony violations of abduction with the intent to extort money or for immoral purpose, placing or leaving wife for prostitution, or felony violations of the laws pertaining to commercial sex trafficking or prostitution offenses, with the exception of violations of crimes against nature, to pay a $500 fee. Such fees are to be paid into the Virginia Prevention of Sex Trafficking Fund. This bill is a recommendation of the Virginia State Crime Commission.

H.B. 2656

Patron: Collins

Law-Enforcement Officers Procedural Guarantee Act; definition of law-enforcement officer. Amends the definition of "law-enforcement officer" under the Law-Enforcement Officers Procedural Guarantee Act (the Act) to include those persons who are nonprobationary officers of the police department, bureau, or force of any political subdivision or the campus police department of any public institution of higher education of the Commonwealth where such department, bureau, or force has three or more law-enforcement officers. Currently, such department, bureau, or force is required to have at least 10 law-enforcement officers for purposes of this definition.

H.B. 2718

Patron: Landes

Interstate 81; Interstate 81 Corridor Improvement Fund. Creates the Interstate 81 Corridor Improvement Fund. Any revenues deposited in the Fund would be allocated for improvements to the Interstate 81 Corridor. The bill also directs the Commonwealth Transportation Board (Board) would develop and update, in consultation with an Interstate 81 Committee (Committee) established by the bill, to develop an Interstate 81 Corridor Improvement Program. The Committee is also directed to review the Interstate 81 Corridor Improvement Plan adopted by the Board in December, 2018, as it relates to funding options and make recommendations to the Governor and the General Assembly regarding funding recommendations and prioritization of projects.

H.B. 2733

Patron: Webert

Personal property tax; exemption for agricultural vehicles. Provides that, for purposes of the optional local personal property tax exemptions for motor vehicles, trucks, and tractors, the exemption shall apply if the vehicle is used primarily for agricultural purposes. Under current law, the exemption applies only if the vehicle is used exclusively for agricultural purposes.

The bill also provides that, for purposes of the optional local personal property tax exemption for farm vehicles, such exemption shall apply to equipment used by a nursery for the production of horticultural products and to any farm tractor.

H.B. 2768

Patron: Campbell, R.R.

Clerks of court; disclosure of tax information. Broadens an exemption that allows beneficiaries and heirs to obtain confidential information about an estate from a clerk of court so that it also includes the commissioner of accounts making a settlement of accounts filed in such estate.

H.B. 2776

Patron: Gilbert

Income tax; modification for certain companies; grants; Page County. Adds Page County to the list of qualified localities in which a company may invest to become eligible for income tax modification. Under current law, a company is eligible for such modification if, among other things, it either (i) invests at least $5 million in new capital investment in a qualified locality and creates at least 10 jobs paying at least 150 percent of the minimum wage in a qualified locality or (ii) creates at least 50 jobs paying at least 150 percent of the minimum wage in a qualified locality.

H.B. 2811

Patron: Webert

Tax-exempt pollution control facilities; certifying authority; Virginia Department of Health. Adds to the duties of the Virginia Department of Health the duty of serving as a state certifying authority in determining conformity with state requirements for certain tax-exempt water pollution control projects. Under current law, the State Water Control Board is the only state certifying authority for water pollution projects. The bill contains an emergency clause.

EMERGENCY