VTCA General Assembly Update
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With the Virginia State Senate controlled by Democrats and the State House of Delegates controlled by Republicans most controversial issues will not pass this year. As the General Assembly gets into its rhythm, it is clear the two political parties are carving out their turf and not much will get passed in either chamber this year.
Gas Tax - Proposals are moving through the House of Delegates, which is expected. HB1144 estimates the monetary impact of a one-year freeze to the Commonwealth Transportation Fund (CTF) is more than just one year. The primary impact of this legislation would be the reduction in the gas and diesel tax rates in FY2023 and FY2024. However, a smaller impact persists in future fiscal years from the assumed inflationary increases beginning from a lower base: 2023 -$275 million loss to the CTF, 2024 -$74 million loss to the CTF and in years 2025 – 2008 each year about -$25 million loss CTF for a total of about $500 million loss to the CTF.
Grocery Tax Cut - One of the signature pieces of the Governor’s campaign, is more complex than it sounds due to all the government services tied to the sales tax: state and local government services, schools, and transportation infrastructure. The initial impact to future transportation funding is around $134 million each year and grows from there ($139 million by 2026). But the Administration is proposing back filling those holes with other funds. Where those “other” funds come from is still unclear. The details are still yet to be worked out with some legislators wanting a year-long study before passing. If backfilling the loss of grocery sales tax toward transportation happens, the annual loss to the CTF will be about $1.4 million every year. The grocery tax cut bill in the Democrat controlled Senate was killed on February 8, then revived for “further review.” It is unclear if a bill will pass out of the Senate Committee, they may wait to see what passes in the House.
Project Labor Agreements - The House of Delegates preferred to go with a complete repeal to the use of PLAs (Project Labor Agreements), prevailing wage or allowing a labor union to represent local government employees in collective bargaining. An identical bill died in Senate Committee, and this version is expected to meet the same fate.
Wage Theft - HB889 - Provides that a contractor, regardless of tier, has a valid defense to a claim for nonpayment of wages if he obtains a written certification from the subcontractor stating that (i) the subcontractor and each of his sub-subcontractors has paid all employees all wages due for the period during which the wages are claimed for the work performed on the project and (ii) to the subcontractor's knowledge, all sub-subcontractors below the subcontractor, regardless of tier, have similarly paid their employees all such wages.
On the Regulatory Side - Governor Youngkin's Executive Order 6 requires the Safety and Health Codes Board to convene an emergency meeting on Wednesday, February 16 at 10:00 AM to discuss whether there is a continued need for the "Permanent Standard for Infectious Disease Prevention of the SARS-CoV-2 Virus That Causes COVID-19." VTCA expressed opposition to then Governor Northam’s original establishment of permanent workplace requirements around COVID for multiple reasons. VTCA will again draft opposition to a permanent workplace standard on an unclear and evolving situation around COVID. You may submit your own comments to Princy.Doss@doli.virginia.gov by Wednesday, February 16.