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Data Center News > Blog > Regulation & Policy > Virginia 2024 Legislative Update | McGuireWoods Consulting
Regulation & Policy

Virginia 2024 Legislative Update | McGuireWoods Consulting

Last updated: March 12, 2024 7:36 pm
Published March 12, 2024
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On March 9, 2024, the Virginia Common Meeting adjourned following a 60-day session throughout which lawmakers voted on over 3,500 items of laws and negotiated a two-year state price range. The 2024 session was marked by some bipartisan cooperation; nevertheless, the razor-thin Democratic majority in each chambers triumphed by passing laws on gun management, abortion rights, and minimal wage. This implies Democrats might not have sufficient votes to override a governor’s veto, and Gov. Glenn Youngkin might want to approve many payments that handed out of the legislature with an in depth partisan vote.

WIZARDS AND CAPITALS ARENA DEAL

In December, Youngkin introduced a deal to carry the NBA Wizards and the NHL Capitals to Alexandria after Monumental Sports activities & Leisure proprietor Ted Leonsis determined to half methods with Washington, D.C. The $2 billion proposal confronted opposition from some residents and help from others, together with some lawmakers. Senate Finance and Appropriations Chair Louise Lucas’ (D-Portsmouth) issues grew all through the session concerning the unfavourable impression on taxpayers, Virginia’s AAA bond rankings, and general uncertainty surrounding the deal. Regardless of the governor’s makes an attempt to barter with the legislature, leaders decided the deal was too pricey for Virginians. The ultimate price range didn’t embrace incentives or authority for the world.

The governor nonetheless has some choices to maintain his plan alive. He might introduce a price range modification through the reconvened session or name a particular session for the Common Meeting to behave on a stand-alone enviornment invoice. There is also a chance that Youngkin vetoes all the price range due to the language elimination, which might imply beginning over the appropriations course of. The exclusion can also end in Youngkin exercising his veto energy to halt different Democratic precedence laws.

MARIJUANA

A invoice addressing the legalization of retail marijuana gross sales in Virginia has been despatched to the governor’s desk. House Bill 698 and Senate Bill 448 set up regulatory framework for cultivation, sale, and possession for private use. Below the payments, licensing purposes may be accepted as early as September 1, 2024; nevertheless, no retail marijuana gross sales can happen till Might 1, 2025. Each payments embrace measures geared toward selling fairness and social justice equivalent to prioritizing licensing for traditionally economically deprived communities.

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Regardless of Virginia’s earlier adoption of a legislation allowing hashish use, possession, and residential cultivation three years in the past, Youngkin has remained reserved about absolutely endorsing additional reform. Nonetheless, as a part of his motion on seven-day laws, Youngkin did veto a invoice geared toward stopping the state from utilizing marijuana as sole proof of kid abuse or neglect.

MINIMUM WAGE

Lawmakers accepted House Bill 1 and Senate Bill 1 to boost the state minimal wage to $15 per hour by 2026 alongside celebration strains. Supporters argued that this improve is important; nevertheless, opponents expressed issues about its potential impression on small companies and employment ranges. Sen. Louise Lucas (D-Portsmouth), who launched the invoice, cautioned the governor about potential adjustments within the Democrats’ cooperation if he vetoes it. Whereas Youngkin has not definitively said his stance, he has indicated his normal opposition to minimal wage will increase, citing his perception available in the market’s effectiveness.

SKILL GAMES

The Virginia Common Meeting has accepted a invoice that overturns the state’s prohibition on talent video games, also referred to as ‘grey machines’. Sponsored by Sen. Aaron Rouse (D-Virginia Seashore), Senate Bill 212 goals to control these video games by imposing a 25% tax charge on gross income and setting limits on the variety of machines allowed per institution. The proposal acquired a 31-9 vote within the Senate and narrowly handed the Home of Delegates with a vote of 51-45. Supporters, who included house owners of fuel stations and eating places, stated the ban on talent video games took away income their companies wanted to outlive the challenges of the COVID-19 pandemic. Nonetheless, opponents expressed issues about potential unfavourable penalties for weak populations with playing addictions.

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The invoice now awaits the Youngkin’s determination because it strikes to his desk for approval. Whereas the governor’s workplace had beforehand expressed reservations concerning the proposed laws, he has not but commented on the ultimate model.

DATA CENTERS

This session noticed a flurry of legislative exercise targeted on knowledge facilities. Legislators from Prince William County launched a number of payments following the county board of supervisors’ latest approval to construct a brand new knowledge heart advanced. These payments encompassed a wide selection of subjects from revising the state’s tax rules to mandating that knowledge heart operators adhere to energy utilization effectiveness requirements, together with addressing points equivalent to water utilization and zoning permissions. No laws was handed; somewhat, all payments had been referred to the ongoing study conducted by the Joint Legislative Audit and Overview Fee. With the fee set to ship its suggestions to the legislature by yr finish, it’s anticipated that knowledge facilities will as soon as once more dominate discussions within the 2025 Common Meeting Session.

ARTIFICIAL INTELLIGENCE

The legislature handed Senate Bill 487 requiring the Joint Fee on Expertise and Science to investigate the usage of synthetic intelligence by public our bodies and whether or not the state ought to create a Fee on Synthetic Intelligence. This comes after state lawmakers learning AI for a number of years, starting with the institution of the Synthetic Intelligence Subcommittee in 2020. Led by Del. Cliff Hayes (D-Chesapeake), the subcommittee goals to offer legislators with a complete understanding of the implications of AI in Virginia. Hayes emphasizes the necessity for proactive measures because of the fast evolution of AI, advocating for a balanced method to its improvement.

CLASS ACTIONS

Senate Majority Chief Scott Surovell (D-Fairfax) and Del. Marcus Simon (D-Fairfax) launched laws that permits class motion lawsuits in Virginia state courts, providing people a technique to take authorized motion towards companies or entities. House Bill 418 and Senate Bill 259 define the steps and guidelines for beginning and dealing with class motion instances, together with notifying class members and approving settlements. Virginia and Mississippi are presently the one two states that don’t allow such fits of their state courts.

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Okay-12 AND HIGHER EDUCATION

Virginia allotted $2.5 billion in the direction of public schooling with a give attention to psychological well being applications and increasing the Okay-12 curriculum on environmental literacy and opioid prevention. Acknowledging the necessity to retain schooling staff and improve competitiveness, lawmakers included a 3% elevate within the biennial price range. Moreover, the price range settlement consolidated funding for varied early childcare teaching programs to assist present flexibility in supply fashions. Legislators handed laws to ban preferential remedy primarily based on legacy or donor standing in increased schooling.

SEVEN DAY LEGISLATION

As a part of a method to boost their leverage with the governor, the Democratic majorities of every chamber despatched quite a few payments to Youngkin early sufficient that he needed to act by the final weekday of session at midnight. His actions on these, they stated, would mirror their place on a few of his price range priorities. These seven-day payments as they’re identified concerned mundane in addition to scorching button points. The governor selected to veto laws relating to firearms, prohibiting guide banning, and voter roll upkeep.

BILLS CONTINUED TO 2025

This yr, over 400 payments had been continued to 2025 and can probably be mentioned subsequent January. Along with the info heart payments, points starting from cruise ship on line casino gaming (House Bill 1478 and Senate Bill 689) to the prohibition of non-compete agreements (Senate Bill 360) can be labored on within the interim and debated once more early subsequent yr.

The governor has the authority to signal, veto, or suggest amendments to all laws. If the governor takes no motion on a invoice, then it turns into legislation with out his signature. Legislators return to Richmond on April 17 to contemplate proposed amendments and vetoes.

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