2017 Legislative W R A P U P R E P O R T Virginia Manufacturers Association 2108 W. Laburnum Ave., Suite 230 Richmond, VA 23227 804-643-7489 (p) 804-780-3853 (f ) www.vamanufacturers.com Key Legislation: http://www.vamanufacturers.com/advocacy/key-virginia-legislation Table of Contents Welcome to the VMA Legislative Wrap Up Report. This report is produced annually to detail the highlights of each Virginia legislative session from the VMA’s perspective. The Table of Contents is a quick reference to key sections of the report. 2 Statistical Overview This is intended to give the reader a concise understanding of the legislative session from the “30,000 foot” point of view. This section details the mechanical and statistical elements of the legislative session such as how many bills were introduced and passed this session. 3 VMA Priority Bills This is the proactive section of the report where details of each bill the VMA requested to be introduced or was part of a coalition or commission that requested the bill to be introduced are found. These were the top priorities of the association during this General Assembly session. 14 Select Defensive Bills This section identifies select bills that required significant VMA action in order to support, amend, neutralize, or stop from negatively impacting the manufacturing sector or VMA’s legislative agenda. 31 Virginia’s State Budget Priorities This section is intended to give members a quick reference on the Commonwealth’s financial health and spending priorities, and how they impact industrial businesses. 34 Summary This is a brief narrative of the Virginia Legislative Session to provide members with understanding of the context and color of this year’s legislative session. Did you know the Virginia General Assembly is the oldest continuous law-making body in the New World? It was established on July 30, 1619. A celebration is being planned for 2019 in Williamsburg. Did you know that the Virginia Statute for Religious Freedom is a statement about both freedom of conscience and the principle of separation of church and state? Written by Thomas Jefferson and passed by the Virginia General Assembly on January 16, 1786, it is the forerunner of the first amendment protections for religious freedom (Source: VA Historical Society, ? 2017). Statistical Overview This year, 60% of the 2,959 bills introduced in the 2017 regular session by members of the General Assembly passed. This is 5% higher than 2015 and 2016. It should also be noted that 3,286 bills were introduced in 2016; 2,776 in 2015; 2,888 in 2014 and 2,575 in 2013. However, if one removes resolutions from the bill list, the total bills introduced in 2017 were 2,176 and the pass rate was 52% of all remaining bills. The chart below is a historical view of VMA legislative session activity. Frequency Priority Legislative Bulletin Government Affairs Year Bills Staff Testified Managed Bills* & Alerts Council Meetings Before Committees 2003 105 14 7 7 31 2004 160 17 29 7 46 2005 65 12 26 7 46 2006 114 14 31 7 37 2007 125 8 21 8 43 2008 122 11 18 8 32 2009 243 8 20 8 36 2010 346 12 36 9 43 2011 133 14 25 7 22 2012 548 16 32 8 30 2013 422 18 21 7 27 2014 379 16 18 9 28 2015 932 27 12 7 15 2016 534 26 18 7 36 2017 416 30 21 7 42 1 Statistical Overview VMA has also categorized the bills managed during this session into 18 policy areas in order to highlight the issues that required the greatest attention: 2015 2016 2017 Legislation Category Bills Bills Bills ABC – VCBG Bills 52 19 23 Budget 10 9 3 Constitutional 58 22 27 Economic Development 55 34 25 Education/Workforce 315 54 68 Employment/WorkforceTraining 53 3 6 Energy Regulation 112 38 37 Environmental 185 67 51 General Government 6 27 20 Health Insurance 46 25 13 Labor-Management 1 35 23 Procurement 46 23 14 Product Liability 0 6 5 Professional/Occupational 2 1 1 TaxationLicensing 194 94 75 Transportation 53 53 13 Unemployment 13 5 1 Workers Compensation 15 19 11 2 2017 Legislative Scorecard for VMA Priority Bills The VMA produced an 80% success rate with this year’s 30 priority bills. 83% of the priority bills had Republican patrons For a detailed review of VMA Priority Bills, go to http://www.vamanufacturers.com/advocacy/key- and 17% had Democratic patrons. virginia-legislation/. To see how each Legislator voted on VMA Priority Bills, please contact VMA Member Priority bills represent legislation that was introduced Services at [email protected] for more on VMA’s behalf, or a coalition to which it belongs, information. and directly relate to VMA legislative priorities that have been developed by members, member Note: The VMA and its affiliate organizations also committees and the Board of Directors. They are work on industry-specific legislation in the policy areas supported by the VMA’s Virginia Industrial Innovation of alcoholic beverage control, chemicals, firearms, Strategy and the VMA 2016-2017 Legislative pharmaceuticals, and tobacco. Please contact VMA Agenda. Member Services at [email protected] for more information. Bill key Win - passed the General Assembly Loss - failed the General Assembly Economic Development Number: VA [R] HB 1500 - Updated (Text 02/27/2017) Sponsor: Del. S. Chris Jones (REP-VA) Title: Budget Bill. Abstract: Budget Bill. Amends Chapter 780, 2016 Acts of Assembly. Status: House: VOTE: ADOPTION (96-Y 1-N) - 02/25/2017 Position: Amend Notes: Items 105#2c, 125#3c, 125#5c and 125.10#1c reverse funding for the Virginia International Trade Corporation but only delays its implementation. Item 116#1c provides $650,000 for VOSH to support three positions in the Virginia Occupational Safety and Health Voluntary Protection Program and three positions in the Office of Consultation Services. Energy Number: VA [R] HB 1766 - Updated (Text, Status 02/24/2017) Sponsor: Del. Gregory Habeeb (REP-VA) Title: Utility Facilities Act; associated facilities of an electrical transmission line. Abstract: Utility Facilities Act; associated facilities of an electrical transmission line. Provides that the issuance by the State Corporation Commission of a certificate of public convenience and necessity for construction of an electrical transmission line of 138 kilovolts and any associated facilities shall be deemed to satisfy local comprehensive plan requirements and all local zoning ordinances with respect to the transmission line and associated facilities. 3 2017 Legislative Scorecard for VMA Priority Bills The measure defines "associated facilities" as including any station, substation, transition station, and switchyard facilities to be constructed outside of any county operating under the county executive form of government that is located in Planning District 8 (e.g., Prince William County) in association with the 138 kilovolt ... Status: House: Bill text as passed House and Senate (HB1766ER) - 02/23/2017 Position: Support Notes: VMA Priority Bill. Essential to APCO region economic development and grid integrity serving new and existing industrial parks for MFG. Number: VA [R] SB 1110 - Updated (Status 02/26/2017) Sponsor: Sen. William Stanley (REP-VA) Title: Utility Facilities Act; associated facilities of an electrical transmission line. Abstract: Utility Facilities Act; associated facilities of an electrical transmission line. Provides that the issuance by the State Corporation Commission of a certificate of public convenience and necessity for construction of an electrical transmission line of 138 kilovolts and any associated facilities shall be deemed to satisfy local comprehensive plan requirements and all local zoning ordinances with respect to the transmission line and associated facilities. The measure defines ""associated facilities"" as including any station, substation, transition station, and switchyard facilities to be constructed in association with the 138 kilovolt transmission line. Status: House: Left in Commerce and Labor - 02/25/2017 Position: Support Notes: VMA Priority Bill. Essential to APCO service to economic development and reliability services benefiting regional MFG. Environmental Regulation Number: VA [R] HB 1619 - Updated (Status 02/14/2017) Sponsor: Del. David Bulova (DEM-VA) Title: Watershed discharge permits; review of allocations. Abstract: Watershed discharge permits; review of allocations. Directs the State Water Control Board to incorporate into the general permit procedures by which it will, every 10 years beginning in 2020, (i) review load allocations to determine whether changes in the use of a facility have halted or reduced nutrient discharges and (ii) determine, prior to reissuing the general permit, the need for reallocations based on a variety of factors, including changes in treatment technologies and land use. Status: Governor: Approved by Governor-Chapter 9 (effective 7/1/17) - 02/13/2017 Position: Support Notes: VMA Priority Bill. Part of a two-year process to expand nutrient trading credits beyond 10 years. This bill is a result of 2016 legislation and Executive Order 52 Working Group led by VMA members and partners. Number: VA [R] HB 2311 - Updated (Status 02/22/2017) Sponsor: Del. M. Kirkland Cox (REP-VA) Title: Nutrient Offset Fund; sale of credits. Abstract: Nutrient Offset Fund; sale of credits. Requires the Director of the Department of Environmental 4 2017 Legislative Scorecard for VMA Priority Bills Quality (DEQ) to use certain funds to purchase nutrient credits for point or nonpoint sources that achieve reductions beyond the requirements of state or federal law or the Chesapeake Bay Watershed Implementation Plan. The bill directs DEQ to establish procedures for distributing moneys from the Nutrient Offset Fund with certain requirements. The bill requires the Director of DEQ to consider the recommendations of the Secretary of Commerce and Trade and the requirements of the State Water Control Law (§ 62.1-44.2 et seq.) in the sale of nutrient credits to new or expanding private facilities.