General Assembly Wrap Up for 2024

The Virginia General Assembly wrapped up on time and with a state budget for the Governor to consider…or reject. Businesses had some worries going into this year. With plenty of new legislators and Democrats controlling both chambers, many speculated a raucous session. However, it turned out to be smooth and mostly quiet on the transportation construction side, but there were big policy moves that may have lasting impacts on how Virginia is governed. The General Assembly will return on April 17 to act on the Governor’s proposed amendments, vetoes, and his own perspective on the state budget. 

Cooperation across the aisles took place, however, the next round of chess has begun with Governor Youngkin’s turn to weigh in on every issue passed by the legislature, including at least one that did not pass: the $2 billion proposal to construct an Alexandria entertainment district (with at least $200M of infrastructure needs). The concept is not completely dead yet. 

Other issues the Governor will weigh in on are: 

• Increasing funding for 12-K education & higher education;
• Increasing the minimum wage to $15 by 2026;
• Establishing a complex digital sales tax (6-7%) on streaming services and business software packages;  
• Developing a regulatory framework for growing, selling, and posing marijuana; and
• All issues that either indirectly or directly impact businesses operating in Virginia. 

VTCA Institutes a Lobby Day   

This year VTCA staff and member firms met with 17 legislators in the span of three hours addressing work zone safety, sustainable transportation funding, ensuring Qualifications Based Selection continues in procurement, aggregate mining and its local economic benefits and the negative impact to Virginia firms, SWaMs, DBEs and consulting firms of mandating project labor agreements. 

A VTCA member testified in opposition to a bill during our Lobby Day requiring all mining operations to publicly advertise any intent to explore for future mining. While the lobby team worked on the bill and was successful in altering the impact to construction mining materials, it still had long-term negative consequences for other non-metallic mineral mining. With a two-minute testimony in front of a committee, our member was able to convince the committee that the bill took too much away from landowners who were already permitted to mine on their own property by right. It was a rare victory where a member's testimony swayed the committee to go in a different direction and the power of member engagement.  

VTCA’s position on most transportation construction issues was to let industry do its work to deliver on time and on budget. While that message worked well most of the time, there are still plenty of bills for which VTCA must address negative consequences, suggest changes, or outright oppose. 
 
Bills VTCA supported: 

• HB 282 - Seibold - Highway work zones; creates a traffic infraction for any moving violation in a work zone. The bill passed and signed by the Governor. 
• HB 1440 - Wiley - Virginia Public Procurement Act; public works contracts, Prohibit project labor agreements. Opposed by the Committee.  

Bills VTCA amended: 

• HB 316 – Bulova – Virginia Recycling Development Center; established, report. Passed. 
• HB 661 – Runion – Design-build engineer; contractors not required to hire on staff in order to submit proposal.  Bill withdrawn with the understanding DPOR’s APELSCIDLA Board will review and amend to not mandate contractors have a full-time Entrusted Engineer in Charge on the payroll.  
• HB 1273 – Krizek – VA Public Procurement Act; additional public works contract requirements 12.5% of all labor hours performed by Apprentices, delayed effective date. The bill was defeated in House Appropriations.  

Bills VTCA opposed:   

• HB 84 – Simonds – Mineral mining and exploration; public notification. VTCA met with the patron of the bill to understand the concerns and worked with her to address her environmental concerns by exempting all non-metallic mineral mining. The bill was defeated in Committee. 
• HB 164 – Keys-Gamarra – Procurement; preference for local products and firms by localities.  VTCA opposed the bill that gave a competitive advantage for transportation construction projects to those firms located in the locality.  The bill was defeated in Committee. 
• HB 532 – Seibold – Transportation project; prohibits initiation of project in an established school crossing zone, etc.  The bill was defeated in Committee. 
• HB 1533 – Shin – Mines and mineral mines; Expand local zoning regulations for mining in Planning District 8 (Northern Virginia). The bill was withdrawn by the Patron. 
• SB 647 – Carroll Foy – Virginia Public Procurement Act; mandate 12.5% of all labor hours must  be performed through apprenticeship programs, competitive sealed bidding. The bill was defeated in the Senate Finance.  

Issues we monitored: 

• HB 1404 – Ward – Establishes the Small SWaM Business Procurement Enhancement Program with a statewide goal of 42 percent of certified small SWaM business utilization in all discretionary spending by executive branch agencies and covered institutions in procurement orders, prime contracts, and subcontracts, as well as a target goal of 50 percent subcontracting to small SWaM businesses in instances where the prime contractor is not a small SWaM business for all new capital outlay construction solicitations that are issued. The bill passed. 
• HB 1100 – Carr  – Trees; Planning District 8 (Northern Virginia), conservation during land development process. The bill passed. 

The State Budget  

View the budget here.

Transportation Budget Items: 

• This amendment makes a limited exception to the Code requirement to allow projects in the I-81 Corridor Improvement Program to move forward even if all of the funding is not included for the completion of the project in the six-year improvement plan. Allowing this exception on a limited basis for I-81 projects is proposed because there is a dedicated revenue stream to support the projects and waiting until projects are fully funded will lead to potentially expensive delays. 
• This amendment modifies language in the introduced budget related to the $70.0 million from the general fund proposed for the I-81 Corridor Improvement Program. The introduced language referenced the funding was for Northbound Lane Widening Project from Mile Marker 116 to 128 in the Salem District. Dedicating the funding to the approved Corridor Improvement Program will allow for more cost-effective implementation, including widening of both the north bound and southbound lanes concurrently, which will reduce the total cost over the life of the project by $70.0 million. 
• This amendment provides $77.0 million the first year and $24.0 million the second year from the general fund to support additional toll relief to eligible drivers who earn less than $50,000 per year. When combined with the existing Toll Relief program, this program will provide a 100% toll rebate on up to 14 trips per week through the Elizabeth River Crossing until 2036. 

We will have a full report of all issues impacting the transportation construction industry after the Veto Session. For questions or comments, please contact Gordon Dixon at gordon@vtca.org.