#1 for Business...Again

As the Virginia General Assembly prepares to return for a Special Session on August 2nd to appropriate American Rescue Plan funds made available to the Commonwealth, we learned that Virginia will also enter the new fiscal year with a substantial surplus in state revenue.

Some of that excess revenue is required to be put set aside in our rainy day and other reserve funds under the Virginia Constitution, and some of it will be available to spend on non-recurring items in the upcoming year.

The Virginia economy is recovering well from the pandemic as vaccination rates continue to climb. Nevertheless, the recovery is uneven, and we will need these one-time funds to ensure our state social safety net is there for our neighbors who won’t be able to bounce back as quickly or suffered more significant hardships during the pandemic.

Given the generally rosy budget outlook, we probably shouldn’t have been surprised that Virginia maintained it’s rating as the number one state to do business according to CNBC’s long running state business rankings.  Virginia is the first state to win the title “Top State for Business” twice in a row (CNBC didn’t issue rankings in 2020 because of the pandemic).

Virginia has ranked #1 five times since the rankings began in 2007– more than any other state.

Now, I haven’t always been one to tout Virginia’s ranking for business friendliness as the most important metric for determining the relative success of state government. To the extent these rankings have, historically, rewarded states with low wages, lots of corporate giveaways, anti-worker policies, weak environmental policies, and limited legal options for consumers. You almost want to be suspicious of states that rank too high.

Since the last set of rankings came out, though, Virginia passed the Clean Economy Act, raised the minimum wage, kicked car-title and payday lenders out of the Commonwealth, gave unions more rights to bargain collectively, passed the Virginia Values Act which includes employee protections from all sorts of discrimination, and made it easier for workers to sue their employers for things like worker misclassification.

So how are we still #1? Let’s dig in a little behind the numbers.

CNBC’s rankings included 85 distinct metrics across 10 competitiveness categories. Some of them are what you’d probably expect: cost of doing business, infrastructure, workforce, access to capital, cost of living, etc.

This year, though, they added some new criteria to reflect what businesses in 2021 care about.

Earlier this week many of us tuned in to watch Major League Baseball’s Home Run Derby and All Start game live from…Denver, Colorado. Seem like a non-sequitur?

All Star Week was originally scheduled for Atlanta, Georgia this year. The MLB pulled out of Georgia earlier this year when players and other stakeholders protested over Georgia’s passing restrictive voting laws.

In announcing their rankings, CNBC made a point of highlighting Virginia’s education system, which helps us to attract and retain an exceptionally talented workforce, and commitment to equity and inclusion. Clearly that was our number one attribute.

They also noted that companies, like Major League Baseball teams, are increasingly vocal in their demands for inclusiveness in the states where they do business, leading to an increase in the importance of this in CNBC’s 2021 competitiveness study, as well as adding metrics on diversity, sustainability, and connectivity.

So, we were able to stay ahead of other states even in a pandemic not only because of our competitive business climate, but also because of progressive legislation that we’ve enacted over the past few years. We’re the first southern state to enact a Voting Rights Act to expand voting rights and access to the polls as well as the Virginia Values Act that ensures comprehensive anti-discrimination laws protect the LGBTQ+ community.

And we didn’t stop there.

We invested in public education and workforce development so that Virginia businesses can recruit workers in Virginia. Since Governor Northam took office, nearly 90,000 new jobs have been created and we’ve invested over $45 billion.

The Get Skilled, Get a Job, Give Back Fund and Program (G3 Fund)​ through the G3 Program provides financial assistance to certain low-income and middle-income students who are enrolled in a higher education program that leads to an occupation in a high-demand field.​ 

Our investments in the highly traveled I-81 corridor and the Port of Virginia are also clearly paying off. Recognizing our commitment to infrastructure, technology, and inclusiveness, companies like Amazon, Facebook, and Micron have chosen to relocate or expand their companies in the Commonwealth.

New Laws Part 2

New laws affecting everything from the intentional release of balloons to legalizing simple possession of marijuana to riding bicycles two abreast on public streets to abolishing the death penalty officially become the law of the Commonwealth on July 1, 2021.

With Democrats in control of both houses of Virginia’s General Assembly and the Governor’s mansion, Virginians will see some significant first-in-the-south changes to Virginia’s code as new laws go into effect this July 1st, along with a laundry list of lower profile but often impactful legislation adopted with broad bi-partisan support.

Advocates for fully reopening Virginia’s schools, for instance, will be pleased to know that a new state law requires all local school districts to offer live, in-person instruction 5 days a week unless that can’t possibly do so safely. That law passed with broad bi-partisan support on an 88-9 vote in the House of Delegates.

An issue that has bi-partisan support among the electorate, according to polling, but that passed almost exclusively with Democratic votes, was marijuana legalization. Beginning July 1, Virginians over the age of 21 can legally possess up to 1 ounce of marijuana for personal use. While Virginia has yet to establish a legal framework for a regulated marijuana market place, making obtaining and transporting marijuana legally fraught, a Virginia household is legally allowed to grow up to four plants, provided they are labeled, not in public sight, and out of the reach of anyone underage. 

While mass balloon releases may produce fleeting, beautiful, Instagram-worthy moments, they won’t be legal in Virginia anymore. Concerns about the long-term environmental impact, particularly on coastal habitats and wildlife, led the General Assembly to enact a ban on the intentional outdoor release of balloons.

Concern for the environment and long-term health of the planet also led to the enactment of laws that will have Virginia join a number of other states looking to increasing sales of electric vehicles. Legislation going into effect this year will require carmakers to sell a certain percentage of electric or hybrid cars.

Mandatory paid family and medical leave is not yet the law in Virginia, but beginning July 1, for the first time, some Virginia business will be required to provide paid sick leave to their employees. Employers of home health care workers who work on average of 20 hours per week or 90 hours per month and who provide personal care, respite, or companion services will be required to allow those employees to start accruing leave. This means they won’t have to choose between taking care of their patient or taking care of their own health.

After greatly expanding worker protections from discrimination on the basis of race, sex, national origin and sexual orientation in 2020 with the adoption of the Virginia Values Act, this year the Act was expanded to include Virginians with disabilities as was the Virginia Human Rights Act (VHRA).

Voting continues to get easier in Virginia, as we continue our climb for a ranking of 2nd to last in ease of access to the ballot to number 12 and hopefully soon to the top 10. Local registrars will have the option to include Sunday voting hours during the recently expanded in-person early voting period. Also, starting July 1, it becomes illegal to carry a firearm within 40 feet of a polling place on Election Day.

When driving, bicyclists and drivers should be aware of two new bike laws: one allows bicyclists to ride two abreast in a travel lane and the other making drivers change lanes when passing bicyclists instead of just moving over. 

Our neighbor, Arlington County, will have the power to rename its stretch of Lee Highway. And we’ll now be able to remove the statue of Harry Byrd, Sr. that stands in Capitol Square in Richmond.

We’re continuing to make strides in criminal justice reform with Virginia becoming the first state in the south to abolish the death penalty. We also eliminated the so-called “Gay Panic Defense,” which previously allowed those accused of homicide to receive lesser sentences by saying they panicked after learning of the victim’s sexual orientation or gender identity.

Local law enforcement agencies and campus police departments will be banned from using facial recognition technology, which will better protect individual’s privacy.

These are just a few of the good bills we passed this year.

New Laws 2021

 This historic Virginia General Assembly sworn in on January 13th, 2020 will meet again for at least two more special sessions prior to the end of the year. We’ll likely meet at the beginning of August to appropriate funds made available to states and localities under the American Rescue Plan, and again to adopt redistricting pans drafted by the Redistricting Commission on which I serve.  

In the meantime, in addition to new laws that took effect July 1st of last year, March 1st of this year, and May 1st of this year, many more bills passed during our 1st special session of 2021 go into effect ton July 1, 2021- almost exactly two weeks from now.  

I got into the weeds on Marijuana legalization in my April column, so this month just a reminder, starting on July 1st, adults over the age of 21 can legally possess up to 1 ounce of marijuana for personal use. You will also be allowed to grow up to four plants per household, provided that the plants are labeled, not in public sight, and out of the reach of anyone underage.  

For those that like to order take-out, you’ll still be able to order those special cocktails and other alcoholic beverages to-go as we extended the original legislation allowing restaurants to include this service on their menus. 

Pet lovers may feel reassured to learn that anyone who has been convicted of animal cruelty is prohibited from owning, operating, managing, breeding, or even staffing a pet shop beginning July 1.  

For those that don’t like lawyers, beginning in two weeks you can file a civil action for personal injury or wrongful death in the General District Courts for up to a maximum of $50,000, a much larger number than before. Litigants are able to appear without counsel in the General District Court. 

On the other hand, we’ve made more jobs for attorneys in appellate practice, creating an automatic right of appeal in most cases, and increasing the number of judges on the Virginia Court of Appeals (from 11 to 17) to handle the increased caseload. 

Virginia will become the first state in the south to abolish the death penalty on July 1st. 

Electric vehicle owners will be able to take advantage of a rebate program for the purchase or lease of new and used electric vehicles, administered by the Department of Mines, Minerals and Energy. 

A person who has been convicted of assault and battery of a family member will be prohibited from purchasing, possessing, or transporting a firearm. There will be a process to have this right restored provided that there isn’t another subsequent disqualifying conviction. 

For those who are members of community organizations that use charitable gaming to raise funds, you’ll still be able to play bingo and hold raffles with some organizations being exempt from the required permit application and fees.  

You’ll be able to continue to take advantage of telemedicine opportunities as the Board of Medical Assistance Services will amend the state plan to provide payment for and the ability to use remote patient monitoring services. This means that health insurance providers will be able to cover these telehealth services. And health insurance providers will be allowed to offer coverage for abortions in any qualified health insurance plan that is sold or offered for sale through a health benefits exchange in Virginia. 

Virginia’s Dream Act will allow students who meet the criteria to be deemed eligible for in-state tuition regardless of their citizenship or immigration status shall be afforded the same educational benefits, including state-administered financial assistance programs or a public institution of higher education, as any other individual who is eligible for in-state tuition. ​ 

The Get Skilled, Get a Job, Give Back Fund and Program (G3 Fund)​ will require the Virginia Community College System to establish the G3 Program to provide financial assistance to certain low-income and middle-income students who are enrolled in program at a public institution of higher education that leads to an occupation in a high-demand field.​ 

Parents with kids in K-12 will be happy to learn that the total number and type of required SOL assessments will be reduced. 

This is just a sampling of the good legislation that passed and will become effective July 1st. For a larger summary of legislation, check out dls.virginia.gov where you can view the Department of Legislative Services’ In Due Course. 

COVID Update

There have been quite few updates to the CDC guidelines and the Governor’s Executive Orders related to the pandemic in the past week. So, I wanted to take this opportunity to share some of those details.

Last Week, the Virginia Department of Health announced that vaccine providers in Virginia may begin vaccinating those aged 12-15. This announcement follows the federal approval of the Pfizer-BioNTech COVID-19 vaccine for use in adolescents yesterday. You can read the full release on VDH’s website.

I have heard from some folks who have had trouble with appointments they scheduled in anticipation of this announcement. The good news is that the Tysons Community Vaccination Center began accepting adolescent appointments and walk-ins on May 14th. The Inova-Stonebridge Vaccination Center is also vaccinating this age group effective immediately. Parents or guardians can schedule appointments through the Fairfax County Health Department and Inova MyChart, respectively. Several local grocery stores and pharmacies will be following suit.

Fairfax County also posted a blog post with this information. Vaccinating children in the 12-15 age group is a critical step towards achieving herd immunity and will help to keep our schools healthy places to learn. A joint letter from Health Department Director Dr. Gloria Addo-Ayensu and Fairfax County Public Schools (FCPS) Superintendent Dr. Scott Brabrand went out to the FCPS community, encouraging families to take advantage of the numerous vaccine opportunities available. The County is also working with FCPS to hold immunization clinics in select Title 1 schools in coming weeks. As I get more information on this, I'll be sure to share it.

Some additional updates on the vaccination progress in Virginia and updated public health guidelines are below.

Vaccination Progress

As of May 19th, 7,615,246 COVID-19 vaccine doses have been administered in Virginia with an average of over 45,000 doses administered daily. 3,465,287 Virginians are fully vaccinated (40.6% of the population) and, 4,397,890 Virginians have received at least one dose of the vaccine. For more data like this, visit VDH's COVID-19 and Vaccinations Data Dashboard at https://www.vdh.virginia.gov/coronavirus/covid-19-vaccine-summary/.

You can find available vaccination appointments on the CDC's Vaccine Finder website (www.vaccines.gov), which also allows you to choose locations based on which vaccine you prefer.

Updated CDC Guidance for Vaccinated Individuals

The CDC has provided updated guidance for people who have been fully vaccinated. They also recently announced that if you’re fully vaccinated, you do not need to wear a mask – indoors or outdoors, in most settings. Please keep in mind that immuno-compromised individuals should consult their healthcare providers regarding these guidelines.

Key mask wearing updates as of May 14th:

• Exceptions include public transit, health care facilities, and congregate settings. Anyone who is not yet vaccinated is strongly encouraged to wear masks in all settings.
• Employees who work in certain business sectors—including restaurants, retail, fitness, personal care, and entertainment—must continue to wear masks unless fully vaccinated, consistent with CDC guidelines.
• Masks continue to be required in K-12 settings, given low rates of vaccination among children.
• Businesses retain the ability to require masks in their establishments if they choose to, and individuals continue to be permitted to wear masks if they choose to.

People are considered fully vaccinated two weeks after receiving the last required dose of vaccine. More details are shown in the online chart here: https://www.cdc.gov/coronavirus/2019-ncov/vaccines/pdfs/choosingSaferActivities.pdf.

Updated Public Health Guidelines

With the release of the CDC's updated guidelines, Governor Northam has amended Virginia's public health guidelines outlined in Executive Order 72 accordingly. Updated guidelines for specific business sectors can be found on the Governor’s website. Virginia will ease all distancing and capacity restrictions on Friday, May 28^th, two weeks earlier than planned.

Key capacity and social distancing changes include:

• Social Gatherings | The maximum number of individuals permitted in a social gathering will increase to 100 people for indoor settings and 250 people for outdoor settings. 
• Entertainment Venues | Indoor entertainment and public amusement venues will be able to operate at 50% capacity or 1,000 people, up from 30% capacity or 500 people. Outdoor venues will be able to operate at 50% capacity - up from 30% - with no specific cap on the number of attendees.
• Recreational Sporting Events | The number of spectators allowed at indoor recreational sporting events will increase from 100 to 250 spectators or 50% capacity, whichever is less.
• Alcohol Sales | Restaurants may return to selling alcohol after midnight, and dining room closures will no longer be required between midnight and 5:00 a.m.

4/20 Marijuana Legislation

On July 1, 2021 it will be legal for adults in Virginia to possess small amounts of marijuana in their homes.  

The General Assembly met for a one-day session on April 7th to review the Governor’s proposed amendments to 37 pieces of legislation that passed during the 2021 Session in addition to 18 budget amendments. This also included the 280-page bill to legalize the possession and regulate the marketing and sale of cannabis and cannabis products in the Commonwealth.

Some people call this annual session which is always scheduled for the 6th Wednesday after adjournment the “Veto Session.” However, the proper designation is Reconvened Session, because even when the Governor doesn’t veto ANY bills (as was the case in 2021) we still have to get together.

Most of the recommendations were technical fixes or friendly amendments, with the House and Senate accepting almost all of them.  

So, let’s talk about what the final version of the Marijuana bill, with the Governor’s amendments now adopted, does, what it doesn’t do, and what it lays the framework for doing later.  

Starting on July 1, 2021, adults over the age of 21 can legally possess up to 1 ounce of marijuana for personal use. You will also be allowed to grow up to four plants per household, provided that the plants are labeled, not in public sight, and out of the reach of anyone underage.

Possession is still prohibited for those under the age of 21, and it’s still illegal to sell marijuana, smoke it in public, or to have open a container of it in your car.  

Starting on July 1, 2025, arrests and convictions for marijuana possession will be automatically sealed and not subject to disclosure. If you have a felony distribution or misdemeanor paraphernalia conviction on your record, you can petition the court to seal your record.

 

Government Oversight & Regulation

The legislation establishes several entities to oversee the regulation, distribution, and equitable application of this new law.  

It creates a Virginia Cannabis Control Authority to write regulations regarding the possession, sale, and distribution of retail marijuana and related products. A major component of this legislation is to ensure social equity and ensure communities that have been impacted by over-policing of marijuana and drugs benefit from the new marijuana economy legalization will bring about.  

To that end, the legislation establishes the Cannabis Equity Reinvestment Board and Fund, which will receive funding from the fees paid by licensed distributing companies and from the taxes from legal sales. With this, the Board will create scholarship programs and grant funds to support communities disproportionately and historically targeted by drug enforcement laws. Workforce development programs, mentoring programs, job training and placement services, and reentry services are examples of what the Board will develop.  

Starting in July 2023, the Cannabis Equity Business Loan Program and Fund will award low-interest and zero-interest loans to social equity qualified cannabis licensees. The sole purpose is to foster business ownership and economic growth within communities that have been the most disproportionately impacted by marijuana prohibition.

The Public Health Advisory Council, made up of individuals with public health expertise, will advise the Cannabis Control Authority on matters of public health, assessing and monitoring public health issues, trends, and impacts related to marijuana legalization. The Council will make recommendations on retail marijuana products safety, composition, public health awareness, programming, and related resource needs.  

There will also be a Cannabis Oversight Commission, comprised of 10 General Assembly members to provide yet another layer of oversight.

The legislation allows local governments to decide, via referendum, whether or not they will permit retail marijuana stores in their area. These referenda must be held between July 2022 and December 2022.

Forty percent of tax revenue from marijuana sales will go to pre-kindergarten programs for at-risk 3 and 4-year olds, 25 percent to substance abuse programs, and 5 percent to public health programs.

 

What About the Retail?

It will be some time, and a few more legislative sessions (regular and reconvened) before you’ll see a retail marijuana store in our area. The legislation we passed puts us on a path toward providing economic investment and empowerment opportunities to individuals and communities disproportionately impacted by the failed war on drugs. Through criminal justice reform and a focus on social equity, we have a real opportunity to right those wrongs and move forward. Establishing health and safety measures that ensure access to a safe and well-regulated product and implementing public health programs so individuals understand the potential dangers of misuse are a large part of this process. 

American Rescue Plan

In March 2020, we were at the beginning of the pandemic hitting Virginia. Sure, we’d been hearing about it for a couple of months, but the reality of it hadn’t quite sunk in. We couldn’t possibly have imagined what was coming and how it would affect our families, our economy, and our communities.

Now, a year later, the idea of a two-week shutdown is a distant memory. We’ve had three federal stimulus packages, a revised state budget, and an ongoing vaccine rollout that seeks to have all adults vaccinated by May. It truly feels like we are on an upswing. This is thanks in no small part to a President who believes in science, who takes the economic health of our country seriously, and who knows that state and local government assistance is a critical component of ensuring that we recover from this pandemic.

The need for action is clear and the recently passed American Rescue Plan is a historic plan that delivers immediate relief to Virginians. It’s critical that we support struggling communities as we continue to work through the pandemic.

To help our hard-hit small businesses, the Plan includes funding for emergency grants and lending opportunities, so they rehire and retain workers as well as purchase the health and sanitation equipment they need to keep workers safe. This includes a Small Business Opportunity Fund to provide growth capital to main street small businesses in economically disadvantaged areas, including minority-owned businesses.

The Commonwealth will receive $4.43 billion in state funds to ensure that we can keep our frontline workers on the job, expand our vaccination efforts, safely reopen our schools, and maintain vital government services. Coinciding with our education priorities in the recently passed state budget, more than $2.18 billion will be distributed in K-12 relief funds.

The Plan includes a $1,400 economic impact payment for more than 5,118,900 adults and 1,884,700 children in Virginia. This is 82% of all adults and 81% of all the children in the Commonwealth.

Through the Child Tax Credit, there is additional relief available of up to $1,600 per child. The Earned Income Tax Credit (EITC) will also provide relief of up to $1,000 for 419,000 childless Virginia workers, including many in frontline jobs.

Because of this plan, we’ll be able to lower or eliminate health insurance premiums for lower- and middle-income families enrolled in the health insurance marketplace. This means that a 60-year old couple, earning $75,000 per year or less with a marketplace health insurance plan, could see their premiums lowered by over $1,500. Or A family of four making $90,000 could see their monthly premium come down by $200 per month. It also subsidizes premiums for continuation health coverage (COBRA).

The Plan extends the current unemployment insurance benefits and eligibility to September 6^th, plus offers an additional $300 per week supplement.

Virginians will continue to have assistance to stay in their homes with emergency aid to cover back rent and mortgage payments plus utility costs through the Homeowners Assistance Fund. This will help an estimated 267,000 Virginians who are behind on their rent.

SNAP benefits will increase by 15% through September 2021. The bill also funds partnerships with restaurants to feed families and keep workers in the restaurant industry on the job. This will go a long way to help the 503,000 Virginians who report not having enough food to eat.  

We’ll also have the single biggest investment in childcare since World War II by helping providers cover their costs and increase tax credits to help families cover the cost of care.

While the pandemic is far from over, it is clear that the sacrifices we’ve made in the last year aren’t for nothing. We’re seeing downward trends in new COVID cases, over 24% of Virginians have been vaccinated with at least one dose, and nearly 50,000 vaccines are administered on average every day.

If you or someone you know needs assistance with their employment benefits, filing their state taxes, getting an issue resolved at the DMV, or with another state agency, please reach out to my office. These are the types of constituent services we can help with and, in times like this, working through the system can seem quite daunting. Like the American Rescue Plan, we’re here to help those that need it.