Bills & Legislation

Creative Economy Task Force; established, strategic plan, report, sunset.

Virginia Innovation Partnership Authority; Creative Economy Task Force established; strategic plan; report; sunset. Establishes within the Virginia Innovation Partnership Authority the Creative Economy Task Force for the purpose of developing a strategic plan to improve the creative economy, defined in the bill, in the Commonwealth. The Task Force shall submit a report of its findings and recommendations to the Governor and the Chairs of the House Committee on Appropriations and the Senate Committee on Finance and Appropriations by November 1, 2027. The bill contains an expiration date of January 1, 2028.

Jackie H. GlassDemocrat

Local ordinances; locality may regulate or prohibit sale of animals in a pet shop, effective clause.

Local ordinances; regulation of pet shops. Authorizes the governing body of any locality to, by ordinance, regulate or prohibit the sale of animals in a pet shop. Such ordinance may distinguish between certain types of pet shops and include provisions for special licensing, inspections, reporting, restrictions, or prohibitions on the sale of certain types of animals. The bill also includes certain existing statewide provisions related to pet shops in the list of sections for which a locality may adopt parallel or more stringent ordinances. The provisions of the bill do not become effective unless reenacted by the 2027 Session of the General Assembly.

Jen Kiggans - to resign 12/31Republican

Black Land Loss, Commission on; established, report.

Commission on Black Land Loss established; study; report. Establishes the Commission on Black Land Loss in the legislative branch of state government for the purpose of studying existing and historical laws utilized by the state and localities to take land from Black people. The Commission consists of 17 members, 10 of whom are legislative members and seven of whom are nonlegislative citizen members.

Karrie K. DelaneyDemocrat

Income tax, state; sustainable aviation fuel production tax credit.

Income tax; sustainable aviation fuel production tax credit. Provides, for taxable years 2026 through 2030, a nonrefundable tax credit against individual and corporate income taxes for eligible producers of sustainable aviation fuel, as such terms are defined in the bill. The amount of the credit is the lesser of (i) $0.75 per gallon of sustainable aviation fuel produced in the taxable year or (ii) $5 million. The aggregate amount of credits allowable under this bill shall not exceed $20 million per taxable year.

Briana D. SewellDemocrat

Health professionals; mandatory suicide training required.

Health professionals; mandatory suicide training required. Requires health care professionals to complete training in suicide assessment, treatment, and management. The bill requires counselors, licensed substance abuse treatment practitioners, marriage and family therapists, behavioral health technicians, qualified mental health professionals, occupational therapists, psychologists, and social workers to complete such training at least once every six years and requires other health professionals to complete such training once. The bill requires the Commissioner of Health and the Department of Health Professions to develop a model list of training programs in suicide assessment, treatment, and management and update such list at least once every two years.

Karrie K. DelaneyDemocrat

Property Owners' Association Act; operation and management of assoc., condemnation of common area.

Property Owners' Association Act; operation and management of association; condemnation of common area; procedure. Requires consideration of the physical characteristics of a property owners' association's common area land when determining such land's highest and best use for purposes of valuing the property for award or payment for such land in a condemnation proceeding after the common area land is taken or damaged under the power of eminent domain.

Phillip A. ScottRepublican

School bds., etc.; applicants for employment involving direct contact w/children in public schools.

School boards and independent contractors; applicants for employment involving direct contact with children in public schools; employment history review. Requires each school board and each independent contractor that provides services in any public elementary or secondary school in the Commonwealth to (i) require each applicant for employment whose position will involve direct contact with children, as that term is defined in the bill, in a public elementary or secondary school in the Commonwealth to provide (a) the address and telephone number of and other any other relevant contact information for the applicant's current employer and any former employer that employed the applicant in a position that involved direct contact with children and (b) a written, signed statement as to whether the applicant has (1) been the subject of an investigation and finding or adjudication of abuse or sexual misconduct, as that term is defined in the bill, by any employer, state licensing agency, law-enforcement agency, or child protective services agency or (2) been disciplined, discharged, nonrenewed, asked to resign, or otherwise separated from employment or had a professional license or certificate suspended, surrendered, or revoked while such an investigation was pending or due to such a finding or adjudication and (ii) request, from each such employer, confirmation of the dates of the applicant's employment and a written statement as to the veracity of the applicant's abovementioned statement, to the best of such employer's knowledge. The bill requires each such employer to respond no later than 20 days after receipt of such a request. The bill permits any school board or independent contractor to use any information received pursuant to clauses (i) and (ii) to evaluate an applicant's fitness to be hired and to consider an applicant's provision of false information or willful failure to disclose information to be grounds for declining to further consider such applicant for employment.

Phillip A. ScottRepublican

High school students; postsecondary opportunities, concurrent enrollment.

High school students; postsecondary opportunities; concurrent enrollment. Defines "concurrent enrollment" as the enrollment of a high school student in an associate degree-level course, creditable toward high school completion, offered on a campus, center, location, or site operated by an associate-degree-granting public institution of higher education, requires postsecondary degree attainment agreements between school boards and comprehensive community colleges to specify options for high school students to earn college credit through dual enrollment, concurrent enrollment, or a combination thereof, requires the College and Career Ready Virginia Program to include the opportunity for any qualified high school student to earn college credit, including pursuant to the Passport Program or the Uniform Certificate of General Studies Program, or a full associate degree through concurrent enrollment, and provides that any student participating in concurrent enrollment courses through the College and Career Ready Virginia Program shall be counted as a high school student for the purpose of the calculation and receipt of state funding for such student.

Phillip A. ScottRepublican

Virginia-Ireland Advisory Board; established, report.

Virginia-Ireland Advisory Board established; report. Creates the Virginia-Ireland Advisory Board to advise the Governor and General Assembly on ways to improve economic and cultural links between Virginia and Ireland, with a focus on the areas of commerce and trade, art and education, and general government. The bill requires the Board to submit an annual report to the Governor and General Assembly.

Israel D. O'QuinnRepublican

Comprehensive community colleges; machinery and equipment for courses and programs.

Comprehensive community colleges; procurement; machinery and equipment for courses and programs; certain limitations prohibited. Prohibits the State Board for Community Colleges and any comprehensive community college from establishing or adhering to any procurement policy, practice, procedure, regulation, or rule that prohibits the procurement of used machinery or equipment when such machinery or equipment is necessary to provide proper student instruction in any relevant course or program.

Israel D. O'QuinnRepublican

Alcoholic beverage control; expands definition of special events, mixed beverage caterer's licenses.

Alcoholic beverage control; special events; mixed beverage caterer's licenses. Expands the definition of "special event" used in the context of alcoholic beverage control to include events where a duly organized nonprofit corporation or association is engaged to be the concession operator entitled to the net proceeds from the sale of alcoholic beverages for such event. The bill also allows mixed beverage caterers' licenses to be granted to a person regularly engaged in the business of providing food and beverages to others for service at cultural or sporting events sponsored by a locality, destination marketing organization, or regional attractions marketing agency.

Paul E. KrizekDemocrat

Standard Diploma; Board of Education shall develop alternative graduation pathways to earn.

Board of Education; development of alternative graduation pathways to earn a Standard Diploma; report. Directs the Board of Education to develop alternative graduation pathways to earn a Standard Diploma that are designed to expand opportunities for students to complete the verified credit requirements for the Standard Diploma that do not require achieving a passing score on applicable Standards of Learning assessments. In developing such alternative graduation pathways, the bill directs the Board to (i) consult with and integrate the perspectives of a broad range of relevant stakeholders; (ii) consider alignment with the competencies articulated in the Profile of a Virginia Graduate; (iii) consider certain elements for incorporation into such alternative pathways, including nonassessment demonstrations of competence, alternative assessments that could be used in lieu of or alongside Standards of Learning assessments, and pathway structures or elements designed to encourage hands-on learning and civic engagement; (iv) ensure that any such alternative graduation pathways do not impact or replace the current requirements for earning a Standard Diploma or an Advanced Studies Diploma; (v) ensure at least one alternative pathway is developed that includes a nonassessment demonstration of competence; and (vi) consider next steps for approval and implementation of such alternative graduation pathways. Finally, the bill directs the Board to submit to the Governor and Chairs of the House Committee on Education and the Senate Committee on Education and Health by January 1, 2027, a report detailing the Board's progress in developing alternative graduation pathways to earn a Standard Diploma, in accordance with the provisions of the bill.

Sam RasoulDemocrat

State correctional facilities; required education or vocational training.

State correctional facilities; required education or vocational training; earned sentence credits classification levels. Requires a prisoner in a state correctional facility, as a part of his reentry plan developed and implemented by the Department of Corrections, to complete a high school equivalency test or vocational, technical, or other certification prior to such prisoner's release. The bill also provides that the annual review of a prisoner's classification level for earned sentence credits shall include such prisoner's quantifiable or measurable progress, as available, in any programs, job assignments, and educational curricula in which he is participating, such as test scores achieved or completion of a high school equivalency test or other trade or vocational certification.

Wendell S. WalkerRepublican

Registration decals; discontinued.

Registration decals; discontinued. Discontinues the requirement for and issuance of decals displaying the expiration month and year of motor vehicle registration to be displayed on license plates. The bill also removes the requirement for the Department of Motor Vehicles to issue appropriately designated license plates for motor vehicles held for rental. The bill does not eliminate existing requirements that vehicles are to be registered.

Terry L. AustinRepublican

Deferred or installment payment agreements; outstanding court-assessed fines, fees, taxes, or costs.

Deferred or installment payment agreements; outstanding court-assessed fines, fees, taxes, or costs. Provides that the attorney for the Commonwealth or the clerk of the circuit court shall not require any defendant sentenced to an active term of incarceration and ordered to pay any fine cost, forfeiture, or penalty related to the charge for which such defendant was incarcerated, or any other chare for which such defendant was sentenced on the same day, the court shall enter such defendant into a deferred payment agreement with a due date set no earlier than 180 days after the defendant's scheduled release from incarceration on the charges for which such defendant was sentenced on the same day.

Mike A. CherryRepublican

Virginia Solar Energy and Battery Energy Storage Systems Program; established.

Department of Energy; Virginia Solar Energy and Battery Energy Storage Systems Program and tax credit; solar energy and battery energy storage projects. Establishes the Virginia Solar Energy and Battery Energy Storage Systems Program, to be administered by the Department of Energy for the purpose of (i) coordinating and supporting the development of solar energy and short duration battery energy storage industries and projects by other public or private entities; (ii) evaluating and approving solar energy and short duration battery energy storage projects as qualified projects for the purposes of the tax credit established by the bill; and (iii) determining which items and services are considered eligible project costs for a given qualified project, as defined in the bill. The bill establishes requirements for what can be considered a qualified solar energy and battery energy storage project based on whether the use of such project is for a residential, commercial and industrial, or utility-scale project. The bill establishes a tax credit for the installation of such residential, commercial and industrial, or utility-scale solar energy and energy storage projects for taxable years beginning on and after January 1, 2027, but before January 1, 2032. Finally, the bill requires the Department to monitor allocation of the tax credit and publish quarterly transparency reports summarizing such information and to establish and maintain a public dashboard displaying certain information on the solar energy and short duration battery energy storage installations by January 1, 2027. The bill has a delayed effective date of January 1, 2027.

David A. ReidDemocrat

Data center tax revenue; creates local residential renewable energy incentive program.

Data center tax revenue; local residential renewable energy incentive program; tangible personal property tax reimbursement; penalty. Authorizes the governing body of any county, city, or town that collects real or personal property taxes for any real or personal property owned by a data center to create a local residential renewable energy incentive program, through which funds shall be used to reduce existing utility bills for residential customers, to reduce reliance upon fossil fuel power generation facilities, to reduce the need for construction and placement of new transmission lines, and to minimize future electricity costs for residential customers. The bill provides that 15 percent of new data center revenue, defined in the bill, shall be spent toward residential solar and battery storage investment and 15 percent of new data center revenue shall be spent toward providing pro rata reimbursements for residents' tangible personal property tax assessments for any qualifying vehicle. Finally, the bill provides that if any locality violates the requirements for such incentive program, the local treasurer shall immediately transfer any remaining funds directly to the State Treasurer. The State Treasurer shall direct such remaining funds to be used for authorized purposes and thereafter such locality's incentive fund shall be dissolved. The bill makes it a Class 1 misdemeanor for a local treasurer to violate such requirement.

David A. ReidDemocrat

Landowners; vested rights.

Vested rights. Alters the criteria for determining when a landowner's rights shall be deemed vested in a land use. Under current law, such vesting occurs when the landowner (i) obtains or is the beneficiary of a significant affirmative governmental act that remains in effect allowing development of a specific project, (ii) relies in good faith on the significant affirmative governmental act, and (iii) incurs extensive obligations or substantial expenses in diligent pursuit of the specific project in reliance on the significant affirmative governmental act. The bill provides that vesting in a land use includes the development of a specific project as contemplated by and consistent with a significant affirmative governmental act and any related approvals, conditions, plans, or application materials accepted or approved by the locality, including the right to make minor modifications to such approvals that substantially conform and do not materially alter the character of the development contemplated by the significant affirmative governmental act. The bill further provides that a zoning administrator shall issue a written determination as to whether a proposed change is material or nonmaterial and that if a zoning administrator determines that a proposed change is material, an applicant may appeal the decision pursuant to general law. Finally, the bill narrows the circumstances by which a locality may treat a use as a valid nonconforming use by providing that if a landowner's rights are vested in a land use, that use shall not be rendered nonconforming by subsequent ordinance changes, except where the General Assembly explicitly authorizes retroactive application of new standards to protect public health and safety.

David A. ReidDemocrat

Law-enforcement officers; paid military leaves of absence.

Military leaves of absence for employees of the Commonwealth or political subdivisions; law-enforcement officers. Provides that any person who is employed by the Commonwealth or a political subdivision of the Commonwealth as a law-enforcement officer shall receive paid leaves of absence for up to 388 hours for which a leave of absence is required, during which such person is engaged in federally funded military duty, to include training duty, or is called forth by the Governor for military duty.

May NivarDemocrat

Zoning; high-energy users, local authority.

Zoning; high-energy users; local authority. Permits the governing body of any locality to give consideration to the adverse impacts on the electric grid caused by high-energy users, as defined in the bill, and impacts resulting from new electric infrastructure in the design of zoning ordinances and the drawing of districts. The bill also permits the governing body of any locality in Planning District 8 to consider the current availability of electric energy against the expected annual electric energy consumption of high-energy users when evaluating land use applications and zoning amendments. Finally, the bill provides that any governing body considering such an application or amendment shall require a high-energy user seeking such application or amendment to provide information regarding the projected annual electric energy usage for the project prior to consideration.

JJ SinghDemocrat

Blue catfish; Marine Products Board shall establish Chesapeake Wild Harvest certification.

Marine Products Board; blue catfish; Chesapeake Wild Harvest certification. Directs the Marine Products Board to establish and maintain a voluntary Chesapeake Wild Harvest certification and labeling program for any blue catfish that is taken or caught in the Chesapeake Bay or its tributaries and is processed in the Commonwealth. The bill prohibits any person from labeling any product as Chesapeake Wild Harvest unless such product conforms to the provisions of the bill.

M. Keith HodgesRepublican

Student-athlete name, image, and likeness deal transparency; best practices, report.

State Council of Higher Education for Virginia; work group; best practices for student-athlete name, image, and likeness deal transparency; report. Requires the State Council of Higher Education for Virginia to convene a work group to evaluate best practices for increasing transparency in name, image, and likeness deals for student-athletes at baccalaureate public institutions of higher education in the Commonwealth. The bill requires the work group to submit its findings to the Chairmen of the House Committee on Education and the Senate Committee on Education and Health by November 1, 2026.

JJ SinghDemocrat

Right to farm; solar panels.

Right to farm; solar panels. Adds any operation for the production of electricity from solar panels concurrent with the bona fide production of crops, animals, or fowl to the definition of "agricultural operation" in the Right to Farm law, which limits the circumstances under which agricultural operations may be deemed a nuisance by preventing certain actions by localities.

Amy J. LauferDemocrat

State Corporation Commission; Phase I Utility biennial rate review, reports.

State Corporation Commission; Phase I Utility; 2026 biennial rate review; report. Directs the State Corporation Commission to consider certain requirements in the 2026 review of the rates, terms, and conditions for the provision of generation and distribution services by Appalachian Power. The bill directs the Commission to review the decision by Appalachian Power to satisfy its capacity obligations with the regional transmission entity through a fixed resource requirement alternative. The bill also directs the Commission to conduct a review of Appalachian Power's efforts to improve system efficiency, resilience, and reliability to address rising costs of responding to severe weather events. The bill requires the Commission to submit a report summarizing its review and providing recommendations by September 1, 2027, or to include such report as part of an existing annual report.

Sam RasoulDemocrat

State taxation; numerous changes to the Commonwealth's tax structure.

State taxation in the Commonwealth. Makes numerous changes to the Commonwealth's tax structure. The bill creates a new income tax bracket for taxable years beginning on and after January 1, 2026, for income in excess of $1,000,000, which is to be taxed at 7.75 percent. The bill increases the standard deduction to $10,000 for single individuals and $20,000 for married individuals beginning in taxable year 2026. The bill also increases the income tax subtraction available for military benefits from $40,000 to $60,000 for taxable years beginning on and after January 1, 2026, but before January 1, 2027. For taxable years on and after January 1, 2027, such $60,000 amount shall be adjusted annually for inflation. Under the bill, eligible low-income taxpayers may claim a refundable income tax credit equal to 25 percent of the federal earned income tax credit claimed by the taxpayer for the same taxable year. Current law allows such a taxpayer to claim a tax credit equal to 20 percent of the federal credit claimed by the taxpayer in the same year. The bill establishes a refundable income tax credit for taxable years 2026 through 2030 for taxpayers (i) with a Virginia adjusted gross income equal to or less than 250 percent of the poverty guidelines and (ii) eligible for a tax credit pursuant to § 36B of the Internal Revenue Code in an amount equal to 100 percent of such taxpayer's enhanced premium credit, defined in the bill. The total amount of credits allowed does not exceed $50 million per taxable year, but no credit is allowed during any taxable year in which § 36B of the Internal Revenue Code is in effect. The bill also creates a one-time tax credit in taxable years 2026 through 2030 for taxpayers whose households include dependents younger than 6 years of age and whose family Virginia adjusted gross income, defined in the bill, does not exceed $100,000. Such credit is in an amount equal to $400 for each such dependent and only one credit may be claimed for each such dependent. The bill provides that, if the taxpayer is a resident of the Commonwealth for the full taxable year, the credit is refundable and requires the Department of Taxation to develop a process allowing taxpayers to elect to receive any such refund in multiple payments. Otherwise, the credit is nonrefundable.

Jen Kiggans - to resign 12/31Republican

Prior conviction; procedure for use as element of offense charged.

Procedure for use of prior conviction as element of offense charged. Establishes a procedure for using a defendant's prior conviction to prove an element of an offense charged or to enhance the punishment for the offense charged.

Sam RasoulDemocrat

Industrial development authorities; housing allowed in certain localities.

Industrial development authorities in certain localities; housing. Allows industrial development authorities in the Counties of Halifax, Henry, and Pittsylvania and the Cities of Danville and Martinsville to exercise their powers with respect to facilities used primarily for single or multifamily residences in order to promote safe and affordable housing in the Commonwealth. Under current law, such powers may be exercised only in a locality where a housing authority has not been activated. The bill also grants industrial development authorities in such localities the power to issue bonds associated with the construction of affordable housing.

Eric PhillipsRepublican

Virginia Public Procurement Act; cooperative procurement, re-roofing.

Virginia Public Procurement Act; cooperative procurement; re-roofing. Excludes re-roofing that does not involve modification to the structure from the prohibition on using cooperative procurement to purchase construction.

Betsy B. CarrDemocrat

Public schools; school security and discipline, employment of school security officers, training.

Public schools; school security and discipline; employment of school security officers; training requirements. Amends the requirements for the training course of which an individual employed as a school security officer is required to submit proof of completion to the Department of Criminal Justice Services in order to carry a firearm in the performance of his duties by (i) eliminating the requirement that such training course include training in active shooter emergency response and, instead, requiring it to include training in critical incident preparedness and response and (ii) clarifying that such training course include training in behavioral threat assessment.

Tony O. WiltRepublican

Children; use of communication systems to facilitate certain offenses, exception.

Use of communications systems to facilitate certain offenses involving children; exception. Provides that the crime of using communications systems to facilitate certain offenses involving children only applies when (i) the child involved is within the age ranges prescribed by law or (ii) the other person involved is a law-enforcement officer posing as a child within the age ranges prescribed by law while in the performance of his official duties.

Wendell S. WalkerRepublican

Part-time or adjunct instructor in public schools; locally awarded subject matter expert credential.

Part-time or adjunct instructors in public schools; locally awarded subject matter expert credentials; career and technical education subjects or courses. Establishes, enumerates criteria for, and permits a division superintendent or a comprehensive community college to issue a locally awarded subject matter expert teaching credential, valid for a period of one year, to any individual who demonstrates expertise in content or subject matter area relating to career and technical education in order for such individual to provide instruction or coursework in one career and technical education course per semester in grades six through 12 at any public school in the Commonwealth or comprehensive community college in the Commonwealth, including dual enrollment or concurrent enrollment courses. The bill delineates the criteria for issuance of such locally awarded subject matter expert credential. The bill also contains several provisions relating to the employment of individuals under a locally awarded subject matter expert credential, including (i) permitting any school division or institution of higher education to hire any such individual as a part-time or adjunct instructor to teach a career and technical education subject or course; (ii) requiring any such individual to be subject to a background clearance check and the fingerprinting and criminal history records check requirements required as a condition of employment of any applicant who is offered or accepts employment at a school division pursuant to applicable law; (iii) requiring each employing school board to assign an individual employed by such school board as a mentor to supervise any individual issued a locally awarded subject matter expert credential; and (iv) permitting any division superintendent to renew an individual's locally awarded subject matter expert credential for a period not to exceed one additional year, provided that such individual receives satisfactory performance evaluations. Finally, the bill requires each school board to annually report to the Department of Education the number of locally awarded subject matter expert credentials issued pursuant to the provisions of the bill.

Wendell S. WalkerRepublican

Affordable housing; development of an assisted living facility.

Affordable housing; assisted living facilities. Allows localities that have adopted an affordable housing program to require that, in an application for a special exception or special use permit, affordable rental units be included for any proposed development of an assisted living facility.

Atoosa R. ReaserDemocrat

Veterans & Defense Affairs, Sec. of; study to recommend plan to guide legislation rel. to veterans.

Secretary of Veterans and Defense Affairs; work group; report. Directs the Secretary of Veterans and Defense Affairs to convene a work group every four years to study and develop recommendations for implementing a statewide strategic plan to guide legislation and budget decisions relating to veterans in the Commonwealth. The bill requires the work group to submit a report to the Governor and the General Assembly by November 1, 2026, and every four years thereafter.

Atoosa R. ReaserDemocrat

School boards; excusing students from attendance at school, verified medical reasons.

School boards; excusing students from attendance at school; grounds; verified medical reasons. Requires each school board to excuse from attendance any pupil who, for any continuous period of time not exceeding 30 school days in length, is absent from school for medical reasons as verified in writing by the student's health care provider.

Kathy K.L. TranDemocrat

Cats and dogs; Virginia Cooperative Extension Service to create a list of toxic houseplants.

Virginia Cooperative Extension Service; cats and dogs; list of toxic houseplants. Requires the Virginia Cooperative Extension Service to create a list of common houseplants that are toxic to cats and dogs no later than November 1, 2026, and to update such list at least every four years thereafter. The bill requires the Department of Agriculture and Consumer Services to make such list publicly available on its website.

Kathy K.L. TranDemocrat

Motor vehicle sales and use tax; exemption for electric vehicles, etc.

Motor vehicle sales and use tax; exemption. Exempts from the retail sales and use tax imposed on motor vehicles in Virginia, any electric vehicle, defined in the bill, being registered for the first time in the Commonwealth if the applicant holds a valid, assignable title or registration issued to him by another state or a branch of the United States Armed Forces and such applicant has owned the vehicle for less than 12 months and provides evidence of purchasing the vehicle while a resident of another state. Current law provides such first-time registration exemption only if the vehicle has been owned by the applicant for longer than 12 months or less than 12 months if such applicant provides evidence of such sales tax payment made to another state.

Kathy K.L. TranDemocrat

Transportation network companies; establishes minimum compensation rates, civil penalty.

Transportation network companies; minimum compensation; civil penalty. Establishes minimum compensation rates for TNC partners. The bill also prohibits gratuities from passengers from being included in TNC partner compensation calculations, authorizes TNC partners to collect gratuity in cash or electronically, and prohibits transportation network companies from limiting the amount that can be paid as gratuity through such companies' digital platforms. The bill requires the Department of Motor Vehicles (DMV) to establish a process for reporting violations and to investigate claims. The bill authorizes enforcement by civil action or by civil penalties assessed by the DMV Commissioner.

Kathy K.L. TranDemocrat

Long-term care insurance; premium rate increases, regulations.

Long-term care insurance; premium rate increases; regulations. Requires regulations promulgated by the State Corporation Commission for long-term care insurance rates to (i) provide a cap on premium rate schedule increases; (ii) require any capped premium rate schedule increase to be spread by the insurer over a period of not less than five years, during which time no further rate schedule increases may be requested; and (iii) prohibit additional premium rate schedule increases after prior cumulative rate schedule increases amount to 250 percent of the original premium. Under the bill, no additional rate increases shall be approved for a long-term care insurance policy that has already reached or surpassed the limit of 250 percent of its original premium. The bill directs the Commission to adopt regulations to implement the provisions of this act, including by establishing a regulatory cap on premium rate schedule increase for long-term care insurance policies that is no more than 30 percent of the maximum amount of premium rate schedule increase permitted under current regulations, as calculated on the request date of the premium rate increase.

Holly M. SeiboldDemocrat

Retail Sales and Use Tax; taxation on various services, includes digital personal property.

Taxation in the Commonwealth. Levies the retail sales and use tax on the following services: admissions; charges for recreation, fitness, or sports facilities; nonmedical personal services or counseling; dry cleaning and laundry services; companion animal care; residential home repair or maintenance, landscaping, or cleaning services when paid for directly by a resident or homeowner; vehicle and engine repair; repairs or alterations to tangible personal property; storage of tangible personal property; delivery or shipping services; travel, event, and aesthetic planning services; and digital services. Digital services are defined in the bill as the following: software application services, computer-related services, website hosting and design, data storage, and digital subscription services. The services taxed under the bill include any transaction for digital services where the purchaser or consumer of the service is a business but do not include any service otherwise exempt under law. The bill also imposes the retail sales and use tax on digital personal property, defined in the bill as a digital product delivered electronically that the purchaser owns or has the ability to continually access without having to pay an additional subscription or usage fee to the seller after paying the initial purchase price. Revenues generated by the taxes levied on services and digital personal property shall be allocated in the same manner as other sales and use taxes; however, revenues from the state portion of the sales and use tax that would be allocated to the general fund shall instead be allocated as follows: first, (i) revenue generated by the imposition of such tax on delivery services in the Northern Virginia Transportation District shall be distributed to the Washington Metropolitan Area Transit Authority and (ii) all other revenues generated by the imposition of such tax on delivery services shall be distributed to the Commonwealth Transportation Fund. Of the remaining revenues, (a) 60 percent shall be distributed to localities on the basis of school-age population and (b) 40 percent shall be distributed to localities on the basis of the high-need student population in the locality. The bill clarifies that a high-need student population includes students who are (1) automatically certified for free school meals because of participation in social services programs, (2) participants in a program of special education, or (3) English language learners. The bill provides certain exemptions to the sales and use tax on services, including health care services that must be performed by a person licensed or certified by the Department of Health Professions, veterinary services, professional services, internet access services, and services provided by a person who does not receive more than $2,500 per year in gross receipts for performance of such services. The bill exempts services purchased by a nonprofit organization and services purchased by a homeowners' association or by a landlord for the benefit of his tenant. The bill also repeals the service exemptions currently provided for the sale of custom programs and modification of prewritten programs. Finally, the bill exempts food purchased for human consumption and essential personal hygiene products from all state, local, and regional sales taxes on and after July 1, 2026. Under current law, food purchased for human consumption and essential personal hygiene products are subject only to the one percent local option sales tax.

Vivian E. WattsDemocrat

Taxation provisions; increases standard deduction.

Taxation provisions. Increases the standard deduction to $10,000 for single individuals, $15,000 for individuals eligible to claim head of household for federal tax purposes, and $20,000 for married individuals beginning in taxable year 2027 and indexes such deduction amount for inflation beginning in taxable year 2028. The bill also removes the aggregate amount of housing opportunity tax credits that may be claimed for qualified projects across all calendar years and exempts food purchased for human consumption and essential personal hygiene products from the local sales tax. The bill establishes two new tax brackets beginning on and after January 1, 2027, that tax income in excess of $600,000 but not in excess of $1,000,000 at a rate of eight percent and income in excess of $1,000,000 at a rate of 10 percent. Finally, the bill provides that 50 percent of revenues generated by the new tax brackets will be dedicated to localities for maintenance, operation, capital outlays, debt and interest payments, or other expenses incurred in the operation of public schools.

Vivian E. WattsDemocrat

Uniform Statewide Building Code; regulations superseded, exceptions, interpretations, report.

Uniform Statewide Building Code; regulations superseded; exceptions; interpretations; report. Removes existing exceptions to the Uniform Statewide Building Code and establishes a process by which counties, municipalities, and other political subdivisions may petition the State Building Code Technical Review Board (the Review Board) to grant single project exceptions. The bill requires the Review Board, in granting approval for an exception, to identify other counties, municipalities, and political subdivisions of the Commonwealth in which the conditions are substantially similar and to which such exception shall therefore apply. The bill additionally requires the Review Board to report to the General Assembly annually no later than November 1 regarding the number of petitions received, the disposition of such petitions, technical findings supporting approvals and denials, and the cost and safety impacts of any approved exception. The bill requires any interpretation issued by the Review Board to apply statewide. Finally, the bill directs the Board of Housing and Community Development, in consultation with the Department of Professional and Occupational Regulation, to establish a training program for local plan reviewers and inspectors to ensure enforcement of the Uniform Statewide Building Code is uniform across the Commonwealth.

Eric PhillipsRepublican

Teacher Recruitment and Retention Mentorship Pilot Program; established, report, sunset.

Department of Education; division superintendents; Teacher Recruitment and Retention Mentorship Pilot Program established; administration; report. Directs the Department of Education (the Department), in coordination with the Virginia Association of School Superintendents, to establish and administer the Teacher Recruitment and Retention Mentorship Pilot Program (the Program) for the purpose of supporting division superintendents of school divisions with high teacher vacancy rates in improving teacher recruitment and retention in such school division by coordinating the establishment of mentorships whereby a division superintendent of a low vacancy-rate school division is connected with a division superintendent of a high vacancy-rate school division to provide mentorship in developing and implementing plans, strategies, and best practices for improving teacher vacancy rates in the high vacancy-rate school division. The bill directs the Department, in coordination with the Virginia Association of School Superintendents, to implement policies and procedures for the establishment and administration of the Program, including policies for coordinating such mentorships, encouraging participation of division superintendents in the Program, and for Program oversight. The bill directs each division superintendent mentorship pair participating in the Program to annually submit to the Department a report on their activities for the preceding school year and any recommendations relating to improving the effectiveness of mentorships under the Program. Finally, the bill directs the Department to submit to the Governor and the Chairs of the House Committee on Education and the Senate Committee on Education and Health by November 1 of each year a report on the activities of the Program for the preceding school year. The bill has an expiration date of July 1, 2029.

Laura Jane CohenDemocrat

Personal property taxes; valuation, effective clause.

Personal property taxes; valuation. Requires that tangible personal property employed in a trade or business, other than such property set out for different valuation in current law, shall be valued by means of a percentage or percentages of original cost to the taxpayer. Current law requires such property to be valued only by means of a percentage or percentages of original cost. The provisions of this bill do not become effective unless reenacted by the 2027 Session of the General Assembly.

Vivian E. WattsDemocrat

Income tax, corporate; taxable income, net operating loss.

Corporate income tax; taxable income; net operating loss. Provides that, beginning in taxable year 2027, for purposes of calculating the Virginia taxable income of corporations, federal income means any income taxable to the corporation under federal law for such year excluding net operating loss deductions under federal tax law. The bill also creates a Virginia corporate income tax net operating loss deduction, beginning in taxable year 2027, in an amount equal to the aggregate Virginia net operating losses for such taxable year, plus any transitional net operating loss deduction, pursuant to a calculation in the bill, and subject to certain other adjustments in the bill. The bill also prohibits a corporation's Virginia taxable income, after all other adjustments, allocation, and apportionment, from being reduced below zero by a Virginia net operating loss deduction. The bill also includes particular procedures for corporate income tax returns prepared on a consolidated or a combined basis. Finally, the bill directs the Department of Taxation to issue preliminary guidelines implementing the provisions of the bill and to cooperate with and seek counsel from interested stakeholders before issuing its final guidelines. The bill has a delayed effective date of January 1, 2027.

Vivian E. WattsDemocrat

Covenants not to compete; exceptions, civil penalty.

Covenants not to compete; exceptions; civil penalty. Prohibits an employer from entering into, enforcing, or threatening to enforce a covenant not to compete with employees who perform key duties of the employer's enterprise or customarily and regularly solicit customers or make sales or contracts for the employer. Under the bill, certain employees are permitted to enter agreements to refrain from soliciting business from the employer for a stated period of time following termination. The penalty provisions in current law for covenants not to compete for low-wage employees shall apply to a violation of the provisions of the bill. The provisions of the bill apply to contracts entered into, amended, or renewed on or after July 1, 2026.

Alfonso H. LopezDemocrat

Income tax, state; affordable rental housing tax credit.

Income tax credit; affordable rental housing tax credit. Establishes a nonrefundable tax credit for taxable years 2026 through 2030 for eligible landlords equal to $750 per affordable dwelling unit, as certified by the Department of Housing and Community Development. The bill limits the (i) total amount of such credits available to an eligible landlord to $15,000 per taxable year and (ii) aggregate amount of such credits claimed to $5 million per taxable year.

Lily V. FranklinDemocrat

Workplace violence; policy required for certain employers, civil penalty, delayed effective date.

Workplace violence policy required for certain employers; civil penalty. Requires any employer of 100 or more employees to develop, implement, and maintain a workplace violence policy no later than January 1, 2027. The bill includes requirements for such a policy, such as procedures and methods for employee reporting of incidents and post-incident investigations. Employers subject to the bill are required to maintain documentation of workplace violence incidents for not less than five years. An employer that violates the provisions of the bill shall be subject to a civil penalty of not more than $1,000 per violation. The bill prohibits retaliation from an employer on the basis of reporting a workplace violence incident and provides that any employee who makes a report of workplace violence shall be immune from civil liability. The bill has a delayed effective date of January 1, 2027.

Nadarius E. ClarkDemocrat

Virginia Clean Energy and Battery Storage Promotion Program; established, report.

Virginia Clean Energy and Battery Storage Promotion Program established; report. Directs the Director of the Department of Energy to establish the Virginia Clean Energy and Battery Storage Promotion Program. The purpose of the Program is to (i) promote the adoption, deployment, and understanding of solar energy and battery storage technologies; (ii) support market development, public information, and workforce development initiatives; and (iii) conduct research and technical studies on cost reduction, deployment barriers, and grid integration. The bill establishes the Virginia Clean Energy and Battery Storage Promotion Board as a policy board in the executive branch of state government to coordinate with the Director to establish a program for the promotion, research, and market development of clean energy and battery storage. Additionally, the bill establishes the Virginia Clean Energy and Battery Storage Promotion Fund to fund the administration and implementation of the Program. The bill requires the developer of a solar energy project or an energy storage system to pay a one-time fee of $0.02 per watt of generation or storage capacity to the Fund. The fee is assessed by the Department of Energy.

Alfonso H. LopezDemocrat