Dorcas Helfant-Browning 

 

Serving as Chair of the Virginia Chamber Board of Directors this past year has been an honor and a privilege. 

 

As my term draws to a close this week, I would be remiss if I did not allude to the exceptional leadership, vision, and dedication of Hugh Keogh. Hugh has served the Virginia Chamber as President & CEO for seventeen years. His legacy has emboldened the Virginia Chamber in its efforts to effectively serve the business community, large and small, by building its reputation as an organization with positive political reach and influence.
 
Thank you all for the opportunity to serve.
 
(Dorcas Helfant-Browning is the Virginia Chamber's outgoing Chair and CEO, Managing Partner &Principal Broker with Coldwell Banker Professional Realtors in Virginia Beach.)

Hugh Keogh 

 

The most intense week of the year for the Virginia Chamber tips off on January 25 with the second full week of the Virginia General Assembly. It reaches a full head of steam on Wednesday when the Chamber staff, board and membership will pack in "Chamber Day at the Capitol", featuring all of the statewide elected officials plus the Speaker of the House; the quarterly meeting of the Chamber's Executive Committee; our Annual Business Meeting at which new officers and board members will be elected and which will also provide members with a depiction of the U.S. Chamber's initiative "American Free Enterprise: Dream Big" by the project's managing VP, Brian Gunderson; and conclude with the storied "Old Dominion Assembly," perhaps the largest and best legislative reception to occur each session. 
 
Those events will be followed on Thursday with the Winter Board Meeting, essentially a day-long event featuring House Speaker Bill Howell and Senate Majority Leader Dick Saslaw. Board members will discuss a wide range of legislative proposals and determine the Chamber's posture on them. While the two days are filled to the brim with heavy duty events, they represent business advocacy at its very best.
 
Remember the Virginia Chamber can only satisfy your interests to the extent you are involved and make your opinions known. Hope to see you at one or more of the events.

Keith Cheatham

 

Week two in Virginia will be remembered for several things. 
 
On January 16, Governor-elect Bob McDonnell became Governor Bob McDonnell - four days into a 60 day rough and tumble session.  He hit the ground running. 
 
On Tuesday, U.S. Senate candidate Scott Brown stunned the political world with his victory in Massachusetts.  His win, at least for now, has slowed the national health care "reform" race to the finish down a notch or two, and it may have a similar effect on other unfriendly business issues like cap and trade and card check.  His win may also influence behavior in our fair city as the legislature wrestles with some of the same issues.  Hopefully our state legislators will agree - if their proposal does not promote jobs and economic recovery - it should wait for another time. 
 
A continuing challenge for all who participate in this legislative process is getting our hands around the 2,400 bills that have been dropped in the hopper to date.  We expect to see more before week's end.    Since most bills have to be acted on at least once by February 17, our work is cut out for us.  If we miss a bill that's of concern to you, speak up.    
 
Here's what's hot this week.

 
- Budget/Tax. The General Assembly has the task of responding to former Governor Kaine's budget proposals - of which there are two - and developing their own before they go home.  With a sputtering economy and stagnating revenues, that will be a challenge. 

 

The proposed budgets offer much to chew on, but several things stand out that will get attention. 

 

One is Governor Kaine's proposal to eliminate the state's $950 million a year payment to localities for car tax relief and replace it with a 1% surcharge on individual income taxes.  That proposal hit a brick wall on Thursday when the House rejected it on a 97-0 vote.    That vote would imply that the budget will be balanced with little or no tax increases.

Another issue yet to be decided is Governor Kaine's proposal to collect $144 million in this budget cycle by accelerating the sales tax collected and remitted by retailers. Some retailers believe the proposal is a bit aggressive and will be trying to scale it back.   

Similarly, retailers rightfully are objecting to Governor Kaine's proposal to eliminate the discounts they receive for collecting and remitting a variety of sales taxes.  It's a $121.8 million savings to the state over two years, but many retailers see it as a tax increase since they would now be asked to collect and remit the taxes, at their expense.

Finally, another $60 million "savings" proposed by outgoing Governor Kaine involves deconforming (yes, it's a real word) from the domestic production tax subtraction allowed by federal law.  That issue is explained in letters sent last week to the sponsors of both bills.  Click here  to read the House letter.   

 

All of this might be a bit hard to digest, but what it means is this: proposals outgoing Governor Kaine assumed would pass and monies he assumed would be collected to balance his budgets are in play, and at risk.  It also means that if the General Assembly strips these out of the budget, that money will have to be replaced with something.  That could be a challenge.  Virginia, unlike the federal government, must pass a balanced budget. 

 
- Healthcare.  While the Congress appears to be in limbo on heath care "reform", state bills to make healthcare more affordable and accessible - or more expensive - are piling up.

Two we've not touched on yet are HB 1263/L.Ware and SB 622/Wampler. Both prohibit your dental insurer from negotiating discounts for services that the patient (you and your employees) pays for out-of-pocket once the annual spending limit has been reached.  This proposal won't affect your medical or dental insurance premiums, but it could mean you'll pay more the next time you visit your dentist's office.

 

It's a bit hard to wrap your head around, but simply put, the General Assembly should not intervene in things that are now settled by contracts between dental plans and participating dentists.  To learn more about this new issue, please go here.

- Unemployment insurance.  Efforts once again to expand eligibility and/or increase benefit costs are in the mix, despite the fact that the state's trust fund (used to pay benefits) went broke last fall and has been borrowing from a federal trust fund - which is also broke - to pay benefits. 

 

You can read more about this important issue here. 

 

We thank the following groups for agreeing:
Alexandria Chamber of Commerce
Arlington Chamber of Commerce
Associated Builders & Contractors - VA Chapter
Associated General Contractors of Virginia
Chesterfield Chamber of Commerce
Dulles Regional Chamber of Commerce
Emporia-Greensville Chamber of Commerce
Easter Associates
Fairfax County Chamber of Commerce
Franklin County Chamber of Commerce
Greater Williamsburg Chamber & Tourism Alliance
Greater Springfield Chamber of Commerce
Hampton Roads Chamber of Commerce
Harrisonburg-Rockingham Chamber of Commerce
Home Building Association of Richmond
Loudoun County Chamber of Commerce
Lynchburg Regional Chamber of Commerce
Mount Vernon-Lee Chamber of Commerce
National Federation of Independent Business
Northumberland County Chamber of Commerce
Petersburg Chamber of Commerce
Prince William Regional Chamber of Commerce
Professional Insurance Agents Association of Virginia
Roanoke Regional Chamber of Commerce
Virginia Association for Home Care & Hospice
Virginia Association of Health Plans
Virginia Automatic Merchandising Association
Virginia Chamber of Commerce
Virginia Coal Association
Virginia Hospitality & Travel Association
Virginia Manufacturers Association
Virginia Motorcycle Dealers Association
Virginia Peninsula Chamber of Commerce
Virginia Pest Management Association
Virginia Poultry Association
Virginia Ready Mix Concrete Association
Virginia Retail Federation
Virginia Retail Merchants Association
Virginia Seafood Council
Virginia Trucking Association
Virginia Utility & Heavy Contractors Council
Virginia Wholesalers & Distributors Association
W. Thomas Hudson & Associates

- Workplace.  Just a few "new" bills to comment on here. Two have popped up that deal with a subject somewhat new to most.  SB 34/Lucas "prohibits an employer from classifying an individual as an independent contractor if he is an employee" and then goes into some detail defining what that means and sets up penalties for violating it.  There's been no explanation as to why this is needed. 

SB 377/Puckett appears similar.  It establishes penalties for employers providing construction services that wrongly classify their employees as independent contractors. Again, there's been no explanation for it. 

Both appear to fit in the category that if a bill does not promote jobs or economic recovery, it's best to pass them by. 

The bill will likely be heard in full committee on Wednesday. If your legislator is on the House Courts of Justice Committee, please ask them to vote against HB465.

- Cash Proffer Bill Advances. Last week, the House Counties, Cities and Towns Committee approved legislation (HB374/Cosgrove) that would prohibit collection of a cash proffer payment until the period between the final inspection and the certificate of occupancy (CO). The bill was reported to the full House where it will be heard this week.

 
The Virginia Chamber strongly supports this legislation and testified in its support in subcommittee. Passage of this bill will keep builders from having to carry this cost and the interest it accrues on their balance sheets for months, thereby helping improve their cash flow and prevent home buyers from ultimately paying those accrued interest costs. Passage of this bill also could help stimulate more housing production in Virginia. That is important when you consider that over 55 businesses, many times local small businesses, are usually involved in the acquisition, financing and construction of every new home in the Commonwealth.  In addition, this bill will lower the cost to the homebuyer.

 
- Stormwater.  Last week, the Senate Agriculture, Conservation and Natural Resources Committee and the House Agriculture, Chesapeake and Natural Resources Committee met jointly regarding Virginia's proposed new stormwater regulations. At the conclusion of a presentation by the Department of Conservation and Recreation (DCR), each side was given the opportunity for one commenter. Barrett Hardiman of the Homebuilders Association of Virginia (HBAV), on behalf of the broad-based business coalition working on stormwater - a group that includes the Virginia Chamber - gave an excellent recitation of the business community's concerns. As the session moves forward, we will keep you informed about the course this issue takes.

Last week we wrote about the Virginia Soil and Water Conservation Board voting to allow an additional thirty days of comments on the proposed stormwater regulations after a number of groups, including the Virginia Chamber, requested the comment period based on the fact that substantial changes were made to the regulations prior to their being passed in December. That decision was reported in an article in  Richmond BizSense that included a quote from yours truly.                 
 

 

- Safety Rest Areas (SRA). These are getting significant attention this session.  In his first week, the Governor issued a plan that was approved by the Commonwealth Transportation board to reopen the closed rest areas by April 15, exactly 90 days after his inauguration, in keeping with his campaign pledge.  In the legislature, four bills address the SRAs.  Two (HBs 1081, 584) direct the Virginia Department of Transportation to immediately reopen the areas and prohibit their closing again.  Two companion bills - which the Chamber helped write - request that the Joint Legislative Audit & Review Commission study the funding mechanisms for the SRAs and make recommendations for removing them from the vagaries of the state budget.  The Chamber supports the studies and will monitor the other two.
 
- Virginia Tourism Corporation (VTC) funding.  Governor McDonnell has proposed to increase the VTC budget by $3.6 million in each of the next two years, with a stated goal of doubling the budget to approximately $25 million annually by the time he leaves office. The Chamber was instrumental in assisting the Governor with his proposals for tourism when he was a candidate, and we heartily endorse the measure. 
 
On the same topic, SB 525 proposes to redirect soft drink excise and litter taxes from the Litter Control and Recycling Fund (as well as restructure the makeup of its Advisory Board) to a Cooperative Marketing Fund administered by the VTC.  Though the Chamber applauds the effort to find a dedicated stream of funding for tourism promotion - one of our stated goals for some time - we wonder whether it's a good idea to attract visitors to the state and neglect the roadways they use to get there.  We will continue to monitor the measure.
 
There are numerous other bills that are being handled by our brethren in other trade associations which we are monitoring and we will add our name where it is appropriate.  These range from the perennial pre-Labor Day school opening bills, wine marketing promotion, Transient Occupancy Taxes, alcoholic beverage licenses, and more.

While much of our work during session is dead serious, we occasionally run across bills that leave you scratching your head.  The exhaustive search has begun again for the session's silliest bill, and to date, only one has been nominated. 
 
It (HB 1104) provides that "the publisher of a newspaper that causes a newspaper to be delivered to the residence of another, after having been given notice to cease delivery, is subject to a civil penalty of $25 for each offense." 
 
You decide if it takes the prize.  If you can find a sillier one, send it in.  The grand prize for the silliest bill will surprise you.

Keith Cheatham 
 
With the 2010 Session in progress, there's no better way to keep up with it than to bookmark the General Assembly's website.  There's a wealth of information available from here. 
 
Don't know who your state legislators are? Click here to find them.   Just fill in the required fields and save the information.  Do it for both your home and work address. You may find that you have four contacts.  We'll be asking you often in the coming weeks to contact them.
 
Visit our website often.  It's user friendly and full of important information. Forget your "member's only" password?  No problem. Contact Keith Cheatham at 804 237-1456.
 
Need more information, or have questions or comments about the upcoming session?  Contact Keith Cheatham at 804 237-1456.
 
Watch for our timely Action Alerts and Chamber Briefings in your inbox and on our homepage under "Government Affairs". 

January 26
Legislative Roundtable - Richmond 
 
January 27
Chamber Day at the Capitol - Richmond                   
Virginia Chamber Annual Meeting - Richmond
Old Dominion Assembly - Richmond 
                                                           
January 28
Board of Directors Meeting - Richmond

Legislative Roundtable - Richmond

 

 

 

Legislative Roundtable - Richmond

April 29
Fantastic Fifty Awards Banquet - Chantilly 
 
May 6-7
Board of Directors Meeting - Pentagon City
 
June 16
Hugh Keogh's Retirement Gala & Roast - Richmond

 

 

Fantastic 50 Awards Banquet