Week four has concluded, and only nine more workdays - counting a weekend - remain until "crossover," that magical time of year when each body has acted on its own bills and now can only consider bills from the other body. There's a lot to be done in the next nine days.
Last week, the General Assembly began to tackle the workload and many of the controversial bills, some of which will be detailed below. On Friday, they took a rare snow day and went home ahead of the pending storm. I don't recall that ever occurring in my thirty years of roaming the halls. It also gave those who roam the halls a rare chance to catch their breath from meetings that can start at seven in the morning and run until eight at night. Whatever one may think of our friends in Washington, these folks in Richmond work hard and long. They get it done, and then they go home.
Here's what's hot this week. If we miss a bill that's of concern to you, speak up.
- Budget - tax. The $144 million issue of accelerating the sales tax collected and remitted by retailers in this budget cycle remains, but it will have to be resolved soon as the budget comes together. Some retailers believe the proposal is a bit aggressive and will try to scale it back.
Similarly, retailers are still 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. It too will have to be resolved soon.
Finally, another $60 million "savings" proposed by outgoing Governor Kaine involves de-conforming from the domestic production tax deduction allowed by federal law. It will likely get attention this week. Remove any one or all three of these items from the budget mix and there's a big hole left to fill.
-Health care. As predicted, health care bills got attention last week.
Two, HB 1263/L.Ware and SB 622/Wampler, prohibit dental insurers from negotiating discounts on services their plans do not cover. This proposal won't affect your medical or dental insurance premiums, but it could mean you and your employees will pay more the next time you visit your dentist's office. It's a bit hard to wrap your head around the first time you study it, but simply put, the General Assembly should not intervene in things that are best settled by contracts.
Both bills were reported from their respective committees last week and reside on the floor. Their passage appears likely.
A number of bills have been introduced again this year that would require (i.e., mandate) insurers to cover educationally related services for
autism spectrum disorders. Two, HB 303/O'Bannon and SB 649/Stosch were heard last week. At least one, SB 464/Howell, remains unheard.
By anyone's estimate, this mandate would create one of the most expensive health insurance mandates in Virginia.
Oddly, most bills require fully insured businesses - small and large - to cover these services when the bills pass, but exempt the state's health plan from covering its own employees until 2015. That hardly seems fair. Perhaps they understand these mandates do cost real money.
The two bills heard last week were rejected, the Senate bill by an 8-7 vote and the House bill by a 4-4 vote. Tie votes don't advance a bill.
The Senate vote is as follows:
To pass (wrong vote): Wampler, Norment, Stosch*, Watkins, Wagner, Newman, Puller (* denotes bill patron)
To defeat (correct vote): Saslaw, Colgan, Miller, Y.B., Edwards, Puckett, Herring, McEachin, Deeds
The House vote is as follows:
To pass (wrong vote): Ware, R.L., Morgan, Merricks, Tyler
To defeat (correct vote): Byron, Nixon, Joannou, Lewis
-Unemployment insurance. Renewed efforts to expand benefit eligibility were taken up last week.
Both SB 239/Watkins and HB 647/Armstrong would permanently expand eligibility for some and further increase your business costs in order to qualify for a one time $125 million pop in federal stimulus or "UI Modernization" dollars. It's the same issue revisited from the 2009 veto session, which the General Assembly rejected.
Over 43 business organizations' objections, including the Virginia Chamber, the Senate bill was reported from committee last week on a 13-2 vote and will likely pass the Senate.
The House bill was defeated in a subcommittee, setting up a showdown when the Senate bill arrives in the House.
Contacts with your House members asking that they remain strong are encouraged.
The Senate vote is as follows:
To pass (wrong vote): Saslaw, Colgan, Miller, Y.B., Wampler, Norment, Stosch, Edwards, Watkins*, Puckett, Puller, Herring, McEachin, Deeds
(* denotes bill patron)
To defeat (correct vote): Wagner, Newman
The House vote is as follows:
To defeat (correct vote): Hugo, Purkey, Rust, Marshall, D.W., Cline, Miller, J.H.
To pass (wrong vote): Johnson, Alexander, McClellan, McQuinn
You can read more about this important issue
here -
Workers' compensation. Two soon to be identical
Business Coalition on Workers' Compensation bills are awaiting action. HB 1326/Merricks and SB 367/Puckett provide, among other things, that the Workers' Compensation Commission appoint a task force to develop recommendations for regulations authorizing reductions or discounts for multiple surgical procedures performed during a single operative session and establishing an employer's limits of pecuniary liability for an assistant-at-surgery.
These are good business bills and should be supported. Both are aimed at getting medical costs under control. You can read more about both
here.
-Workplace. A bill (HB 171/Pogge) to allow (with exceptions) guns in locked vehicles while on your property - despite any policy to the contrary - got the green light last week from a House subcommittee. The Virginia Chamber, Virginia Retail Federation, Virginia Retail Merchants Association, and the Virginia Hospitality & Travel Association all indicated the measure was not needed and would lead to needless litigation. Even though it was amended to make it "better," it still bumps up against property rights and interferes with a business owner's rights to manage his workforce and worksite as he thinks prudent. It's similar to a bill seen several years back. Despite efforts to improve that bill, it could not be fixed to satisfy all, and it died. Contacts with your legislators this week are requested.
Two bills we wrote about last week have died. SB 34/Lucas and SB 377/Puckett dealt with misclassifying employees as independent contractors and established penalties for improper classifications. Both are gone for the year after business organizations, including the Virginia Chamber, expressed concerns. Our thanks go to Chamber member Hunton & Williams for assisting in these efforts. It was a new topic for most, and they explained why it was not needed.
Two bills we've not given much attention to are seeing some action. One is broad, the other narrower. Both require employers to use the (for the most part) voluntary federal E-verify program to verify the legal work status of new hires.
HB 737/Albo is the broader bill and requires the program's use for most employers. It has not been heard. SB 225/ Barker is narrower and applies to contractors who do work with local and state governments. That bill got a negative reception last week. Language to accomplish a similar purpose is rumored to be in the budget bill and must be removed.
The federal I-9 form already requires employers to "verify" this information. Requiring a second test to confirm the first is duplicative, time consuming and has problems. Additionally, the General Assembly has passed legislation in recent years cracking down on those who knowingly hire illegal workers. We supported those measures.
One measure not mentioned yet is still to be heard. HB 454/Herring expands the protection for employees from discrimination by certain employers (those having more than five but less than 15 employees) to failure or refusal to hire or for otherwise discriminating against any individual with respect to his compensation, terms, conditions, or privileges of employment on the basis of race, color, religion, national origin, sex, pregnancy, childbirth or related medical conditions, including lactation, or of age if the employee is 40 years old or older. Currently, causes of action are limited to wrongful discharge.
While we certainly don't encourage or condone discrimination, this bill upsets a very delicate balance crafted by an earlier General Assembly in response to a Virginia Supreme Court decision. This expands that and puts small employers at great risk. Litigation against small employers can be expensive and can put the entire business at risk of closing.
The Virginia Chamber has endorsed the Governor's jobs package, a broad assortment of bills that appear to enjoy bi-partisan support and that have a common theme: the facilitation of economic development in Virginia. Re-ordering the Commonwealth's budgetary priorities to put job creation at the top of the list is the right thing to do at this important juncture. Even beyond the Governor's package, we would support a jolt of new funding for additional advertising and promotion of the state in the global marketplace, much like the additional $3.6 million the Governor has proposed for the Virginia Tourism Corporation in each year of the biennium. 
