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Virginia Chamber Legislative Position Key:

The Virginia Chamber SUPPORTS this bill.

The Virginia Chamber OPPOSES this bill.

This bill supports a Blueprint Virginia initiative.

www.vachamber.com/blueprint

http://www.vachamber.com/blueprinthttp://www.vachamber.com/blueprinthttp://www.vachamber.com/blueprint

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Legislation of Interest to the Virginia Business Community

**denotes a change

Economic DevelopmentBill Patron Summary Position

HB873 Jones

Ports tax credits. Changes Virginia's ports-related tax credits by increasing the annual amount ofinternational trade facility tax credits that may be issued from $250,000 to $1.25 million, decreasingthe annual amount of barge and rail usage tax credits that may be issued from $1.5 million to$500,000, and allowing a taxpayer to be eligible for the port volume increase tax credit and the bargeand rail usage tax credit if the taxpayer meets the criteria for both. The bill reduces from 10 percentto five percent the minimum annual increase in cargo transported through a maritime port that is acondition of eligibility for the international trade facility tax credit. The bill also makes roll-on/roll-offcargo eligible for the international trade facility, port volume increase, and barge and rail usage taxcredits. The provisions of the bill would become effective for taxable years beginning on or afterJanuary 1, 2014.

Education and WorkforceBill Patron Summary Position

HB30/SB30 Jones/Stosch Item 135 (M) -- Funding to recruit and retain teachers in STEM subjects

HB30/SB30

Jones/Stosch Item 210 (O) funding to implement SySTEMic Solutions initiative to address needs in STEM

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Development Officer, and sets out the qualifications for this position. The bill requires the Board todevelop initiatives to increase the number of private and nonprofit training vendors serving theVirginia Workforce Network, created in the bill. The bill also requires the Board to create a militarytransition assistance committee to advise the Board and the Chief Workforce Development Officer onreforms necessary to (i) connect more employers to transitioning military personnel and trailingspouse through transition assistance programs, thereby reducing the veteran unemployment rate tono more than the statewide unemployment average; (ii) better integrate the Veterans EmploymentRepresentatives and Disabled Veterans Outreach Program into all Vi rginia Workforce Centers; (iii)standardize all veteran service qualifications statewide; and (iv) el iminate all process and

qualification barriers for veterans to ensure that qualified veterans have access to training andemployment services within 10 business days after their first request for services. The bill containstechnical amendments.

SB539 Howell

Secretary of Education; annual report. Requires the Secretary of Education, on or before October1 of each year, to report to the Governor and the General Assembly on the Commonwealth's effortsto promote science, technology, engineering, and mathematics education; career readiness; andcareer and professional certification at all levels of education.

Employment Law Bill Patron Summary Position

HB32 Morrissey

Minimum wage. Increases the minimum wage from its current federally mandated level of $7.25 perhour to $8.50 per hour effective July 1, 2014, unless a higher minimum wage is required by thefederal Fair Labor Standards Act. The act will expire at such time as the federal minimum wageequals or exceeds $8.50 per hour.

HB93 Krupicka

Employment applications; inquiries regarding criminal arrests, charges, or convictions;penalty. Prohibits state agencies and private employers from including on any employmentapplication a question inquiring whether the prospective employee has ever been arrested orcharged with, or convicted of, any crime, subject to certain exceptions. A prospective employee maynot be asked if he has ever been convicted of any crime unless the inquiry takes place after theprospective employee has received a conditional offer of employment, which offer may be withdrawnif the prospective employee has a conviction record that bears a rational relationship to the dutiesand responsibilities of the position. A prospective employee may not be asked if he has ever beenarrested or charged with a crime unless the inquiry takes place after the prospective employee hasreceived a conditional offer of employment, which offer may be withdrawn if (i) the prospective

employee's criminal arrest or charge resulted in the prospective employee's conviction of a crime and(ii) the crime of which he was convicted bears a rational relationship to the duties and responsibilitiesof the position. A private employer who violates the provisions of this section is subject to a civilpenalty not to exceed $100 for each violation.

HB422 Davis

Prohibiting certain local government practices that would require contractors to providecertain compensation or benefits. Prohibits local governing bodies from establishing provisionsthat would require a wage floor of any other employee benefit or compensation, above what isotherwise required by state or federal law, to be provided by a contractor to its employees as part ofa local government contract. Any such provisions previously adopted by a local governing body thatdid not receive the approval of the General Assembly shall be considered null and void.

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matters.

HB949/SB519

Hugo/Wagner

Natural gas utilities; upstream supply infrastructure projects. Authorizes a natural gas utility torecover eligible costs of eligible natural gas supply infrastructure projects. A plan for recovery of suchcosts may provide the utility with an option to receive the gas or sell the gas at market prices. Themeasure also (i) provides that the transportation of natural gas by pipeline, without providing serviceto end users within the territory, shall not be considered operating in the territory of another certificateholder; (ii) bars the State Corporation Commission from approving the construction of a natural gascompressor station in an area without the locality's certification only if the area is zoned exclusivelyfor residential use; and (iii) expands the definition of a strategic natural gas facility to include a natural

gas transmission company that adds design day deliverability or designed send out of at least100,000 dekaTherms per day in the aggregate. The bill exempts open season capacity acquisitionsor releases between a public service company and an affiliated interest from the requirement that theCommission approve contracts entered into by a public service company.

HB1224 OQuinn Natural gas-fueled electric generation facilities; incentives.

HJ76 Herring

Study; mandatory renewable energy portfolio standard program; report. Directs theCommission on Electric Utility Regulation to study the establishment of a mandatory renewableenergy portfolio standard program for the Commonwealth. The study will (i) address issuesassociated with transitioning from the existing voluntary renewable energy portfolio standard programto a mandatory program, (ii) determine the costs and benefits that would be associated with requiringelectric utilities to meet varying levels of renewable energy portfolio standard goals, (iii) recommend

measures to address electric utilities that do not meet the program's goals, and (iv) determine if it isfeasible and advisable to require that all electric utilities in Virginia participate in a mandatoryrenewable energy portfolio standard program.

Environment Bill Patron Summary Position

HB1261 Chafin Virginia Energy Plan; incorporate a Carbon Dioxide Emission Control Impact Study andperiodic interim updates to the Plan.

SB48 Stuart

Prohibition on oil and gas drilling. Prohibits the drilling for oil and gas in the Eastern VirginiaGroundwater Management Area. When the General Assembly enacted the GroundwaterManagement Act in 1973, it declared that the continued, unrestricted usage of groundwater iscontributing and will contribute to pollution and the shortage of groundwater, thereby jeopardizing the

public welfare, safety, and health. The Act recognized that the state has the right to the reasonablecontrol of all groundwater resources in order to conserve, protect, and beneficially utilize thegroundwater of the Commonwealth. The bill would apply to groundwater and the associated aquifersin the coastal plain of Virginia. The bill would also require the Department of Environmental Quality toadopt regulations protecting surface and ground water resources before the Department of Mines,Minerals and Energy issues a drilling permit in those areas of Tidewater where such activity isallowed.

Bill amended to allow oil and gas drilling in Eastern Virginia, but only after the Department ofEnvironmental Quality develops regulations. Regulations to be completed by mid-2016.

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SB615 Carrico

Regulating carbon dioxide emissions. Establishes the process for adopting state carbon dioxide(CO2) requirements consistent with the emission guidelines the U.S. Environmental Protection

Agency (EPA) intends to propose under 111d of the Clean Air Act for regulating CO2 emissionsfrom existing fossil fuel-fired electric generating units in June 2014. The bill requires the State Ai rPollution Control Board to establish separate CO2 performance standards for coal-fired and gas-firedelectric generating units on a case-by-case basis, and based on the best system of emissionreduction that has been adequately demonstrated and can be reasonably achieved throughmeasures undertaken at each unit, without requiring the unit to switch fuel. The bill requires the

Board to consider on a case-by-case basis whether less stringent performance standards than thoserequired by EPA's Emission Guidelines are warranted, taking into account seven enumerated criteria.Once the Board determines appropriate performance standards, the Board, to the "maximum extentpermissible," is to implement the performance standards through flexible regulatory mechanisms,including emissions averaging or emissions trading. Finally, the bill prohibits the state from submittingany 111d plan to EPA inconsistent with the bill, except as is necessary to comply with federalregulations.

General Business Bill Patron Summary Position

HB167 Ramadan

Virginia Business One Stop electronic portal program; participation by State CorporationCommission. Advances the date, from June 30, 2018, to June 30, 2017, by which the StateCorporation Commission is required to fully integrate processes and forms into the BusinessPermitting Center administered by the Department of Business Assistance and to process all formswithin 48 business hours from the time the applicant submits the form electronically. The bill alsorequires the Commission, by December 1, 2014, to implement a hyperlink from its website to theCenter that will facilitate the collection by the Center of a user's information to populate any formsthat will be required to be completed at a future date. Biannual progress reports are to be provided tothe Secretary of Commerce and Trade, who is directed to oversee the implementation of theseprovisions. Representatives of the Commission, the Department, and the Secretary are directed tomeet no less frequently than monthly to further the collaboration to identify, develop, and implementenhancements to the Business One Stop and eFile systems to provide for an improved citizenexperience

HB168 Ramadan

Clerk of the State Corporation Commission; secure online system; articles of dissolution;emergency. Requires the clerk of the State Corporation Commission, by July 1, 2014, to ensure thatthe Commission's eFile electronic registration system is secure. The system shall be deemed secureif it (i) provides a means to verify the identity of users; (ii) designates each user as having access with

regard to one or more specified business entities; and (iii) allows users to access informationregarding, and to make changes to records in the system affecting, only a business entity for whichthe user is designated. The measure also directs the clerk to ensure that any articles of dissolution ofa stock or nonstock corporation that are filed in his office are signed by the chairman, a vice-chairman, the president, or any other of its officers authorized to act on behalf of the corporation whoare listed as a director or principal officer on the corporation's most recently filed annual report. Thebill has an emergency clause.

HB313 D. Marshall

Clerk of the State Corporation Commission; unauthorized filings. Authorizes the clerk of theState Corporation Commission, upon determining that a person who executed or delivered abusiness entity document to the clerk's office lacked the authority to act on behalf of the businessentity, to refuse to accept the document for filing. The clerk is further authorized under suchcircumstances to summarily remove a filed document, correct the records, and notify the affected

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business entity. The measure also includes stylistic and technical changes.

Health Care Bill Patron Summary Position

HB30/SB30

Jones/Stosch Medicaid Reform and Expansion through market based principles.

HB33/SB484

Habeeb/Stuart

Pediatric oral health benefits; reasonable assurance of provision. Declares that a health carrierthat makes available in the small group market or individual market a health benefit plan that doesnot include the minimum essential pediatric oral health benefits required under the federal AffordableCare Act shall be deemed to have obtained reasonable assurance that the pediatric oral healthbenefits are provided to the plan's purchaser if (i) at least one qualified dental plan offers suchbenefits and is available for purchase, (ii) the health carrier prominently discloses that its plan doesnot provide the required benefits, and (iii) the entity offering the qualified dental plan providing therequired benefits is licensed to provide them in the Commonwealth.

Legal Bill Patron Summary Position

HB375/SB150

OQuinn/ Stuart

Patent infringement; assertions made in bad faith. Prohibits any person from making in bad faithan assertion, allegation, or claim that a resident of the Commonwealth is infringing a patent. Themeasure creates a cause of action for damages and an injunction against a person threatening tobring legal action for alleged patent infringement. A court that finds that a target of an assertion ofpatent infringement has established a reasonable likelihood that the person has made the assertionin bad faith shall require the person to post a bond in an amount equal to the target's costs to liti gatethe claim and amounts reasonably likely to be recovered as damages. The Attorney General or anyattorney for the Commonwealth is empowered to issue civil investigative demands, acceptassurances of voluntary compliance, and seek injunctions. The target of a bad faith assertion or anyother person aggrieved by a violation may bring an action to recover actual damages, fees, and costsand obtain equitable relief. If the violation was willful, damages may be increased to the greater of

three times the actual damages sustained or $50,000.

HB398 Fariss

Statutes of limitation; accrual. Provides that in civil actions to recover for damage to property orinjury to person, if the injury was not reasonably discoverable on the date it was sustained, thestatute of limitations does not begin to run until the date that injury was discovered or should havebeen discovered. Under current law, in most cases the limitations period begins to run from the datethe injury was sustained. No change is made to the law governing limitations periods in medicalmalpractice cases.

SB232 PetersenService of process on domestic corporations. Allows process on a Virginia corporation to beserved on its registered agent by posting a copy of the process on the front door or main entrance ofthe corporation's registered office.

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SB251 McEachinGrand larceny; threshold. Increases from $200 to $1,000 the threshold amount of money taken orvalue of goods or chattel taken at which the crime rises from petit l arceny to grand larceny. The billincreases the threshold by the same amount for the classification of certain property crimes.

Military & Veterans Affairs Bill Patron Summary Position

HB30/SB30

Jones/Stosch Item 461 (F)-- Funding to support the Virginia Values Veterans Program.

HB30/SB30

Jones/Stosch

Item 144 (M) Funding to support pilot program to assist Virginia veterans and military members incompleting degree and professional programs

HB730** Lingamfelter

Secretary of Public Safety; Secretary of Veterans Affairs and Homeland Security; transfer ofcertain powers and duties. Renames the Secretary of Public Safety as the Secretary of PublicSafety and Homeland Security and reassigns duties currently assigned to Secretary of Veterans

Affairs and Homeland Security relating to homeland security. The bill renames the Secretary ofVeterans Affairs and Homeland Security as the Secretary of Veterans Affairs. The bill alsoincorporates portions of the JLARC report relating to improvements to Virginia's homeland securityactivities. The bill contains numerous amendments to accomplish this transfer of powers and duties.

The bill contains an emergency clause.

SB18 Locke

Unemployment compensation; quit to follow military spouse. Provides that good cause forleaving employment exists if an employee voluntarily l eaves a job to accompany the employee'sspouse, who is on active duty in the military or naval services of the United States, to a new military-related assignment established pursuant to a permanent change of duty order from which theemployee's place of employment is not reasonably accessible. The measure applies only i f the stateto which the spouse is transferred has a similar provision, unless the transfer involves members ofthe Virginia National Guard relocated within the Commonwealth. Benefits paid to qualifying claimantsshall be charged against the pool rather than against the claimant's employer. The measure alsorepeals Chapter 878 of the 2009 Acts of Assembly, which is similar to this measure but did not takeeffect because the contingency in its third enactment was not satisfied.

Procurement Bill Patron Summary Position

HB346/SB165

James/Locke

Public-Private Transportation Act of 1995; additional requirements for certain comprehensiveagreements. Provides that no comprehensive agreement providing for the lease, operation, ortransfer of ownership of a qualifying transportation facility under the Public-Private Transportation Actwith a total value of more than $1 billion and having a substantial negative impact on the taxrevenues of an affected jurisdiction or substantially increasing the taxes, fees, or expenses that wil lbe paid by residents of an affected jurisdiction may be executed by a state agency unless (i)approved by the Governor and (ii) a bill that includes a specific description of the proposedagreement and its anticipated expenditures and revenues is passed by the General Assembly.

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HB349 James

Public-Private Transportation Act of 1995 and Public-Private Education Facilities andInfrastructure Act of 2002; additional requirements for comprehensive agreements. Providesthat no comprehensive agreement providing for the lease, operation, or transfer of ownership of aqualifying transportation facility under the Public-Private Transportation Act or a qualified projectunder the Public-Private Education Facilities and Infrastructure Act with a total value of $1 billion ormore shall be executed by a state agency unless (i) approved by the Governor and (ii) a bill thatincludes a specific description of the proposed agreement and its anticipated expenditures andrevenues is passed by the General Assembly.

HB1136 Joannou

Public-Private Transportation Act of 1995; approval of schedule of tolls and fees. Prohibits theinclusion in a comprehensive agreement under the Public-Private Transportation Act of 1995 of aschedule of tolls or user fees for a road, highway, tunnel, or bridge unless the General Assembly, by

joint resolution, has approved the schedule. The measure also requires that any user fees providedfor in a comprehensive agreement be set forth in a schedule that has been approved by the General

Assembly.

SB26 Alexander

Public comment and access; presentation to Committees of the General Assembly. Increasestime periods for public comment and submission of competing proposals and transparency inagreements pursuant to the Public-Private Transportation Act of 1995. The bill also requires apresentation to the Transportation Committees, Senate Finance Committee, and House

Appropriations Committee of the General Assembly for projects in excess of $1 billion.

SB91 AlexanderComprehensive agreement; reduced rates for commuters. Requires comprehensive agreementsunder the Public-Private Transportation Act of 1995 to include a provision providing for reduced ratesfor commuters who use the facility at least 20 times per month during a 12-month period.

Small Business Bill Patron Summary Position

HB321/SB362

Landes/Saslaw

Entrepreneur-in-Residence Program. Creates the Entrepreneur-in-Residence Program, a pilotprogram administered by the Secretary of Commerce and Trade to improve outreach by stategovernment to the private sector. The objectives of the program are to (i) strengthen coordinationand interaction between state government and the private sector on issues relevant to entrepreneursand small business concerns and (ii) make state government programs and operations simpler,easier to access, more efficient, and more responsive to the needs of small business concerns andentrepreneurs. Under the bill, entrepreneurs-in-residence serve without compensation but, at thediscretion of the head of the agency they were appointed to serve, may receive reasonable andnecessary expenses incurred in the discharge of their duties. The program was created by Chapter788 of the Acts of Assembly of 2013 but will not become effective unless reenacted by the 2014Session of the General Assembly. The program has a 2017 sunset date.

HB932/SB492

Landes/McWaters

Virginia Economic Development Partnership Authority; Department of Small Business andSupplier Diversity; administration of the Virginia Jobs Investment Program. Changes theadministration of the Virginia Jobs Investment Program from the Department of Small Business andSupplier Diversity to the Virginia Economic Development Partnership Authority.

Tax Bill Patron Summary Position

HB30/SB30

Jones/Stosch

3-5.10 INTANGIBLE HOLDING COMPANY ADDBACK-- Notwithstanding the provisions of 58.1-402(B)(8), Code of Virginia, for taxable years beginning on and after January 1, 2004:

(i) The exception in 58.1-402(B)(8)(a)(1) for income that is subject to a tax based on or measuredby net income or capital imposed by Virginia, another state, or a foreign government shall be limited

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and apply only to the portion of such income received by the related member, which portion isattributed to a state or foreign government in which the related member has sufficient nexus to besubject to such taxes; and

(ii) The exception in 58.1-402(B)(8)(a)(2) for a related member deriving at least one-third of itsgross revenues from licensing to unrelated parties shall be limited and apply only to the portion ofsuch income derived from licensing agreements for which the rates and terms are comparable to therates and terms of agreements that the related member has actually entered into with unrelatedentities.

HB57 Miller Sales and use tax exemption; bullion. Exempts from sales and use tax gold, silver, and platinumbullion. The provisions of the bill are set to expire December 31, 2017.

HB480/SB515

Villanueva/Wagner

Domestic international sales corporations; income taxation. Exempts a domestic internationalsales corporation (DISC) and any income attributable to a DISC from income taxes.

HB617** Davis

Personal property tax; classification. Creates a classification for personal property tax ratepurposes of property owned by a business during its first two years of operation, if the business'sannual gross revenues do not exceed $100,000. A locality may impose a rate of tax on such propertythat is lower than the rate on the general class of tangible personal property.

HB1220/SB623

Comstock/McDougle

Research and development expenses tax credit. Increases beginning with taxable year 2014 theamount of the credit allowed from 15 percent of the first $167,000 to 15 percent of the first $234,000of Virginia qualified research and development expenses, and from 20 percent of the first $175,000to 20 percent of the first $234,000 of Virginia qualified research and development expensesconducted in conjunction with a Virginia institution of higher education. The bil l increases themaximum annual amount of tax credits that may be issued each fiscal year from $5 million to $10million. The bill allows a pass-through entity to elect to receive and claim any credit at the pass-through entity level in lieu of the credit being allocated to the individual partners, members, orshareholders of the pass-through entity. Finally, the bill requires any taxpayer applying for the creditto provide information to the Department of Taxation relating to the number of full-time employees ofthe taxpayer; the taxpayer's industry sector; the area, discipline, or field of Virginia qualified researchperformed by the taxpayer; the taxpayer's total gross receipts for the relevant taxable year; andwhether the qualified research was performed in conjunction with a Virginia institution of highereducation.

Technology Bill Patron Summary Position

HB30/SB30

Jones/Stosch

1-119 Funding for the Innovation and Entrepreneurship Investment Authority; Foster developmentof Virginia-based technology, biosciences, and energy companies; expand initiatives in cybersecurity; expand broadband; and promote modeling and simulation in new growth industries.

HB1270 Minchew Center for Rural Virginia created, pursuant to Virginia Code 2.2-2720, to prepare a ruralbroadband underserved area report.

Tourism

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assistance. The bill provides for the Virginia Employment Commission to develop and implement theprogram and to report annually to the Governor and the General Assembly on (i) the total number ofparticipants, (ii) the fiscal status of the Program, and (iii) any other information that will assist indetermining the viability of the Program.

SB18 Locke

Unemployment compensation; quit to follow military spouse. Provides that good cause forleaving employment exists if an employee voluntarily l eaves a job to accompany the employee'sspouse, who is on active duty in the military or naval services of the United States, to a new military-related assignment established pursuant to a permanent change of duty order from which theemployee's place of employment is not reasonably accessible. The measure applies only if the stateto which the spouse is transferred has a similar provision, unless the transfer involves members ofthe Virginia National Guard relocated within the Commonwealth. Benefits paid to qualifying claimantsshall be charged against the pool rather than against the claimant's employer. The measure alsorepeals Chapter 878 of the 2009 Acts of Assembly, which is similar to this measure but did not takeeffect because the contingency in its third enactment was not satisfied.

SB110 Stanley

Unemployment compensation; short-time compensation program. Establishes a short-timecompensation program that provides employers with the option of reducing the hours worked byemployees, while permitting the employees whose hours are reduced to receive partialcompensation for lost wages. Program participation requires Virginia Employment Commissionapproval of a plan, which must provide that the reduction in hours of work is in lieu of a layoff of anequivalent percentage of employees and that employees' health and retirement benefits cannot bereduced or eliminated under the plan. The measure requires the Commission to submit reports onthe program's implementation and accomplishments, with recommendations to improve itseffectiveness. The measure becomes effective January 1, 2015.

SB266 Stanley

Unemployment benefits; financial literacy course; volunteer service. Allows recipients ofunemployment benefits to extend their benefits through completion of a financial literacy course andvolunteer service at a nonprofit organization.

Amended : Allows VEC to provide job seekers courses on financial literacy.

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919 East Main Street Barry DuValSuite 900 President & CEORichmond, VA 23219 b.duval@vachamber.com

www.vachamber.com Keith Martin Vice President of Public Policy and General Counselk.martin@vachamber.com (804) 237-1456

Ryan Dunn Vice President of Business & Government Relationsr.dunn@vachamber.com (804) 237-1455

Samantha QuigManager of Government Affairss.quig@vachamber.com

(804) 237-1457Mark BarrettPublic Policy Coordinatorm.barrett@vachamber.com (804) 237-1464

mailto:b.duval@vachamber.commailto:b.duval@vachamber.comhttp://www.vachamber.com/http://www.vachamber.com/mailto:k.martin@vachamber.commailto:k.martin@vachamber.commailto:r.dunn@vachamber.commailto:r.dunn@vachamber.commailto:s.quig@vachamber.commailto:s.quig@vachamber.commailto:m.barrett@vachamber.commailto:m.barrett@vachamber.commailto:m.barrett@vachamber.commailto:s.quig@vachamber.commailto:r.dunn@vachamber.commailto:k.martin@vachamber.comhttp://www.vachamber.com/mailto:b.duval@vachamber.com