Concierge Connections
VIRGINIA'S HOSPITALITY & TRAVEL BLOG
February 14th, 2024 was not only Valentine’s Day and Ash Wednesday, it was Crossover Day in the Virginia General Assembly. Crossover Day is the formal halfway-point in each year’s Legislative Session where all of the bills that have passed the House must “crossover,” to the Senate for consideration and vice versa. All bills that have not been fully passed by their original chamber by that day are officially dead beyond revival.
I’d like to give you a short, broad survey of where the legislation stands now that will affect your business most: 1. Tipped Wage – HB335 was brought by Delegate Deborah Gardner to phase out Virginia’s tipped wage credit over the course of a few years, much in the same way that our standard minimum wage has been rising periodically as a result of Democratic legislation from the 2020 and 2021 sessions. VRLTA’s opposition to the bill was strong enough that the patron substituted her bill for a working group that will be convened through the Department of Labor and Industry over the course of 2024 to study the prospect. That group will collaborate on a report to be given to the House and Senate chairs of the respective Commerce committees by December 1, 2024. 2. Short-term Rental Regulation – HB695 was brought by Delegate Lee Ware on behalf of VRLTA as well as the Virginia Municipal League and the Virginia Commissioners’ of the Revenue Association to establish a registry for short-term rentals (STRs) that would help localities corroborate tax remittances and ensure local ordinance compliance. That bill had reported out of the House Finance Subcommittee and the full Finance Committee completely uncontested, and was scheduled for a hearing at the final meeting of the House Appropriations Committee. It was, however, removed from the docket at the last moment for unclear “policy concerns.” VRLTA is still working to ascertain what those might be, but the bill will not move forward this year.
3. Fee Disclosures – SB388 was brought by Senator Stella Pekarsky to prohibit hidden fees in most consumer transactions. This bill would require disclosure upfront of final pricing in most merchant transactions. The patron accepted VRLTA amendments which dealt with the funds charged as part of Tourism Improvement Districts, which are termed as fees but in reality act as taxes. That took us out of opposition, however industries such as the airlines, rideshares, delivery services, and more continue to have deep concerns with the bill and how it affects their industries’ various practices around pricing. 4. Minimum Wage – HB1/SB1 were brought by Delegate Jeion Ward and Senator Louise Lucas as re-enactments of the original minimum wage hikes that Democratic majorities passed during their brief trifecta in 2020 and 2021, in which they controlled both houses of the legislature as well as the Governor’s mansion. Both bills have passed their respective chambers on clean party-line votes. The Governor has signaled that he is not inclined to sign the bills, however this is one of several matters that will likely come down to budget negotiations between the legislature and the Governor before it is finally resolved one way or the other. 5. Capitals/Wizards Arena – HB1514 was brought by House Appropriations Chairman Luke Torian to establish a governing authority and set up a financing framework for the building of the proposed new home of the Washington Wizards and Washington Capitals in Potomac Yard, Alexandria. This will also probably come down to the final budget negotiations. The Senate version, carried by Majority Leader Scott Surovell (SB718) was left in committee, but the House version (HB1514) was passed. The Senate Chair of Finance, Louise Lucas, has made clear that she is not inclined to let the bill through under the current political conditions. It’s possible that some give and take with the Governor could change that, but more remains to be seen. 6. Dealer Discount – VRLTA worked with Senator Glen Sturtevant to re-introduce language that would fully restore Virginia’s dealer discount on interchange fees associated with tax remittances to the state. The budgets are not final yet. These are just a few of the most salient measures for the tourism, lodging, and restaurant industries that are making their way through the legislature. You can find a more comprehensive bill listing at our online VRLTA Bill Tracker, which is updated weekly with the newest actions on bills and the budget. As ever, if you have questions about this or other issues related to the government and our industries, please don’t hesitate to reach out to me, Tommy Herbert, VRLTA’s Director of Government Affairs, at Tommy@VRLTA.org or (804) 761-3235. Thank you. Best, Tommy The travel and tourism industry is an integral part of Virginia’s economy – generating tens of billions in both direct visitor spending and significant jobs. In 2022 alone, the Virginia tourism industry brought in $30.3 billion in visitor spending, a record for the Commonwealth. Perhaps most importantly, we are poised to continue growing as the sector moves beyond recovery from the pandemic. One potential development will turbocharge that growth in the coming years– a new sports arena and entertainment district in Alexandria.
As our state’s marketing campaign notes, Virginia is for Lovers. And there’s a lot to love about bringing two professional sports teams, a new arena, and a broader entertainment district to Northern Virginia. Monumental Sports’ new campus will be a catalyst for a new concert venue and entertainment district that includes new hotels, shopping, dining, and mixed-use housing. This hotel and conference space is desperately needed to attract larger gatherings and business meetings to Northern Virginia. Our partners at Visit Alexandria called that aspect a “game-changing opportunity” for Alexandria and the region. Having a new world-class performance venue stands to benefit the region too, bringing in premier talent for shows and concerts. Virginia is specifically and uniquely positioned geographically within a day’s drive from tens of millions of Americans. Having another marketable destination will be a boon for drive-in visitors. Our existing restaurateurs and other small businesses will thereby benefit from the several million attendees at events over the course of a year. One of the most exciting features of this proposal is the upside in new tax revenue that will be generated for the Commonwealth. In recent years, Virginia visitors accounted for over $2 billion in state and local tax revenues. Adding new spending and tax generation with this project will mean more money for transportation infrastructure and public amenities - making this area an even more attractive place to live, work and visit. Finally, it should go without saying that tourism equals jobs. In 2022 alone, state analysis showed tourism-supported jobs accounted for 5.5% of all jobs in the state. This new development will create tens of thousands of new jobs, many of them in our sector. For nearly 80 years, the Virginia Restaurant, Lodging & Travel Association has represented the Commonwealth’s restaurants, hotels, and travel attractions. Rarely has a project been met with such excitement for its potential impact on our industry and for the trajectory of travel in Northern Virginia. And because of what tourism means for our state’s economy, Richmond should love it too. Why are VRLTA dues increasing in 2024?Membership Dues Have Stayed Flat for Over Five (5) Years VRLTA last increased membership dues in 2018. We understand the significant impacts to the hospitality has faced over the past five years, including a global pandemic and recession, and we’ve made sure to be as accommodating as possible under these circumstances. The dues increase will bring our association more in-line with current rates. Association Membership Is Bigger Than Ever. More Members = More Resources Needed VRLTA membership has increased significantly thanks to the hard work of our team, and VRLTA plans to invest in additional resources to help accommodate and bring value to our growing membership. One of the biggest focus areas on these efforts is the work our Government Affairs team does to support legislation that provides cost-saving opportunities to our members, funding opportunities, VA ABC legislation and regulations, workforce issues across the Commonwealth, and more. VRLTA is Providing More Programs and Resources to Our Members Now with a fully-staffed team, VRLTA is able to offer more resources and programs to our members than ever before. The association now offers in-house photography and production, improved marketing opportunities, over 50 networking events annually, and an ever-growing list of partner benefit programs like the newly-created association healthcare program with UnitedHealthcare. How much will my dues increase?The VRLTA member dues will see an increase of approximately 10% across our various membership levels. If you're interested in seeing the full list of 2024 membership offerings, you can do so here. When does the dues increase go into effect?The dues increase will go into effect on January 1, 2024. Anyone who either joins VRLTA or renews their membership on or after that date will do so under the updated membership dues. My VRLTA membership comes through a TID, what does that mean for me?If your VRLTA membership comes from being part of a Tourism Improvement District (TID), there's nothing you need to worry about. As the costs of your membership comes through the TID fund, we'll continue to work directly with the TID Governance Committee directly on any dues changes for 2024 and beyond. What more can we expect in 2024?We're so glad you asked! VRLTA is excited to roll out a number of new opportunities and improved resources to our members in the upcoming year. Here's a look at what you can expect:
TC Energy Seeking Hospitality Suppliers TC Energy is actively seeking applications for local businesses to become contractors on Columbia Gas Transmission’s Virginia Reliability Project (VRP). TC Energy is seeking the expertise of a wide range of services, including transportation, food and catering, health and safety, security, administrative, and construction services, among many others. Businesses interested in working on the VRP should visit the Supplier Page on VirginiaReliability.com to learn more about the opportunities available and indicate their interest by completing the webform on the page. All interested vendors are asked to submit their information by the end of October. At TC Energy, supplier diversity is a proactive process that provides diverse suppliers equal access opportunities to conduct business with the company. TC Energy is committed to pursuing every opportunity to hire local small, women, and minority (SWaM), and indigenous-owned businesses, our neighbors in the region, to support the Virginia Reliability Project and benefit from the jobs the project is expected to generate. NRA Fly-Ins on Credit Card Competition Act I want to let you know and encourage you to attend one of two of the National Restaurant Association’s fly- in’s in concert with the Merchants Payments Coalition to meet with Senators Kaine and Warner on the Credit Card Competition Act. These fly-ins will be hosted November 15 and December 6. If you can spare the day to help raise our industry’s voice in DC, please let me know and I would be happy to connect you with the team over there to facilitate. We would be grateful for any time that you have to help us advocate on this really important issue for the industry. Thanks so much and as always let me know if you have any questions. Please Support VRLTA PAC Please consider joining our below list of VRLTA PAC heroes by supporting our political action committee. VRLTA PAC is one of our greatest tools to identify, form partnerships with, and uplift new legislative champions in the halls of the Virginia General Assembly to protect sound policy regarding restaurants, hotels, and tourism. You can donate at our website here, or by sending a check to VRLTA PAC at VRLTA headquarters: 5101 Monument Ave, Ste 206, Richmond, VA, 23230, c/o Tommy Herbert.
The Virginia Spirits Board is celebrating Virginia Spirits Month in September and we hope you, our licensee partners, will celebrate with us! We have a whole line up of events and special opportunities for consumers and licensees alike to join in the celebration! Click here to read the press release from Virginia ABC
How can you celebrate?
Who is the Virginia Spirits Board? The Virginia Spirits Board was established in 2020 by enactment of the Virginia General Assembly. It was created to provide resources for promotion of the Virginia spirits industry by a number of means approved by an administrative board appointed by the Governor. The purpose of the Board is to foster the development of the Virginia spirits industry by expanding spirits research, increasing education, and promoting the production of ingredients necessary for alcohol distillation and the production of spirits in the Commonwealth. The Board is comprised of eleven members, three of whom are coopers or maltsters and six of whom are owners or operators of a distillery in the Commonwealth. The remaining two members are the Commissioner of Agriculture and Consumer Services and the Chief Executive Officer of the Virginia Alcoholic Beverage Control Authority, and they serve ex officio without voting privileges. The Virginia Spirits Board Marketing Office, operated by the Hodges Partnership – a strategic communications firm located in Richmond, VA, has partnered with Drink Local, producer of the Virginia Spirits Expos, to help promote the Virginia Spirits industry and provide additional opportunities for consumers to engage with local distillers. For more information about the Virginia Spirits Board visit www.virginiaspirits.com and for more information about the Virginia Spirits Expos visit www.virginiaspiritsexpo.com The Virginia Spirits Board Marketing Office is proud to be a new Gold Level Partner with the Virginia Restaurant, Lodging and Tourism Association for 2023/24. Join Us! VRLTA PAC Hampton Roads Dinner September 13 Political season is upon us, with all 140 seats of the General Assembly up for re-election under completely new district lines drawn in a way that they never have before. We will experience historic turnover in the House of Delegates and the Senate of Virginia, there is absolutely no doubt. Virginia’s hoteliers and restaurateurs are losing many faithful legislative champions for our industries, and that is why it is incumbent upon us to identify and uplift new policymakers who are focused on helping the hospitality and tourism industries in the Commonwealth! Our best tool to accomplish that is VRLTA PAC. VRLTA member leader Chris Savvides is graciously hosting a seated dinner at his Virginia Beach restaurant Black Angus to support VRLTA PAC. Please take a moment to RSVP. The details are below. WHEN: September 13, 2023 from 6:30 – 9:30 PM WHERE: Black Angus Restaurant, 1340 N. Great Neck Road, Suite 1228, Virginia Beach, VA 23454 COST: $200 per seat/$350 per couple CLICK HERE TO RSVP
Prince William Meals Tax Event
VRLTA was excited to re-connect this week with our network in Prince William County as well as Supervisor Jeanine Lawson of Brentsville who is running for Prince William County Board Chair At-Large this year. Prince William restauranteurs have been busy on the ground raising awareness of the burdensome meals tax that was implemented this year by the Prince William Board of County Supervisors. Supervisor Lawson has committed, alongside others, to a repeal of the meals tax in the event of a change in the majority of the Board. This would be an exciting development and a big message sent to other localities that may be considering these meals taxes with their newfound freedom to institute them without a popular referendum. VRLTA wants to make it clear in advance to Virginia’s localities that may be looking at meals taxes that we will be there to oppose them wherever they might pop up. Help Restaurants by Contacting Your Senator on Swipe Fees
One issue that seems to only become more costly to VRLTA members is the rising cost of credit card swipe fees. This week, the Senate may have an opportunity to vote on the Credit Card Competition Act (CCCA), but securing this vote is an uphill battle. That’s why we need you to take two minutes to tell your senators why this legislation is important to you. NRA Executive Vice President of Public Affairs Sean Kennedy goes over this critical legislation in his most recent 90 second update, which you can find here. If passed, CCCA would save businesses and consumers an estimated $15 billion a year. The National Restaurant Association, alongside VRLTA, has been working on this issue for years, and we are proud to support this legislation — but we need your help. Tell your senators to stand up for restaurants by passing the Credit Card Competition Act - click here to act! This is Election Season, Let’s Make Connections! As VRLTA continues to connect with candidates and legislators across the Commonwealth alongside our members, we are encouraging you to do so as well! This is truly an unprecedented election year here in Virginia, and the General Assembly is set to experience historic levels of turnover. That means that candidates and sitting legislators who are running in Virginia’s radically new legislative districts are eager to meet and connect with their voters. That means YOU! If you don’t know who represents you now, or who is running to represent you, no problem! There is a combination of tools that can get you up to speed. You can use Virginia’s Who’s My Legislator Tool to learn what district you’re now in, and the Virginia Public Access Project to see just who is running to represent you! Please take every opportunity you can to connect with these candidates. Forming relationships early can prove extremely helpful down the road when this huge new crop of legislators are looking for guidance from their voters on policy. Save the Date: VRLTA PAC Dinner September 13 in Virginia Beach More info to come soon, but please mark your calendars for what will be a great evening supporting a helpful organization for our industries. Nearly all laws that pass in the Virginia General Assembly’s Regular Session, convened annually in January for either 46 or 60 days, go into effect on the succeeding 1st of July. VRLTA wants to make sure that you are ready! Below you will find some of the most pressing of the new laws that will affect hotel and restaurant operations going forward. This list is by no means exhaustive, and if you are interested to see what other laws will be going into effect on July 1, I highly recommend reading the publication In Due Course, which is compiled by Virginia’s Division of Legislative Services annually for just that purpose.
Human Trafficking Training Starting July 1, all hotel employees will need to complete a course in identifying and stopping human trafficking. The Department of Criminal Justice Services has completed work on a state-provided course which can be accessed at no cost by anyone, as well as an informative page for operators with answers to frequently-asked questions. They are also maintaining a list of approved courses, which includes many of the courses common to the larger brands, including the ECPAT course. Take a moment and ensure that your employees are in compliance, as the Virginia Department of Health will start enforcing this requirement as part of each hotel’s annual site inspection. If you have questions, contact Tommy at tommy@vrlta.org. Association Healthcare Plan On July 1, associations like VRLTA and others will be able to offer their members and member companies access to an association-wide healthcare plan, which will open up a great opportunity for restaurant and hotel employees and employers for whom healthcare benefits had previously been out of reach. VRLTA is working on finalizing the details of the plan that we will offer to our members through United Healthcare, and we hope to have more detailed news on this for you ASAP. Barrier Crimes for ABC Manager We worked with Delegate Elizabeth Bennett-Parker of Fairfax to pass a bill which will make it easier for qualifying employees who are re-entering citizens be able to reach ABC manager status in Virginia restaurants. Oyster Shell Tax Credit This year a new, unique tax instrument will become available in the Commonwealth, designed to both help oyster production in the Bay, and reward seafood purveyors with a mind for conservation. These two bills work together to establish the Oyster Shell Waste Diversion Fund, and to make oyster shell donation for recycling an eligible activity to receive funds from the Virginia Oyster Replenishment Fund. This will help restaurant operators serving fresh oysters and will help support greater populations of Virginia oysters in the Bay. Please take all of the appropriate steps to make sure that you and your businesses are in compliance and/or taking advantage of these new incoming laws. Of course, if you have questions or concerns about anything that you’re reading here, please do not hesitate to reach out to Tommy Herbert, Director of Government Affairs, at Tommy@VRLTA.org. VRLTA Priority Bills Signed into Law In the time since the end of the 2023 General Assembly Session, several pieces of legislation that will make a big difference for members of the Virginia Restaurant Lodging and Travel Association (VRLTA) have been amended and signed into law by Governor Youngkin: Association Health Plans – SB1171, which VRLTA worked on alongside Senator Siobhan Dunnavant of Henrico has been signed. Starting July 1, associations like ours will be able to offer members access to an association-wide healthcare benefits plan, much like an employer. VRLTA is working closely now with United Healthcare to plan a comprehensive rollout of our plan as soon as possible, and hope to have more news for members on that topic soon. ABC Manager Status – HB1730, which VRLTA worked on alongside Delegate Elizabeth Bennett-Parker of Fairfax has an added technical amendment from the Governor, and will take effect July 1 as well. This bill helps reduce the barrier crimes that would bar a citizen returning from being involved with the justice system from achieving ABC Manager status at a Virginia restaurant. This is a big step in providing more and better employment opportunities to folks that are returning from incarceration, which is one of the most important indicators of how likely someone is to re-offend. Oyster Replenishment Fund/Tax Credit – HB1438 and SB997, which VRLTA worked on alongside Delegate Tim Anderson and Senator Monty Mason of Hampton Roads, establish a fund by which the Commonwealth will be able to compensate folks for the recycling of their empty oyster shells. The credit is available up to $1,500 per year, and could make a big impact both for the bay and for the restauranteurs and hoteliers who delight in serving its produce. Norfolk Delegates Cheer On Students at VPSI This year’s Virginia ProStart Invitational took place at Old Dominion University on April 12. Teams of high school students from across the Commonwealth converged on Norfolk to compete in culinary and restaurant management competitions. The annual event, hosted by VRLTA, was also attended by area legislators Delegate Jackie Glass and Delegate Angelia Williams-Graves who both represent the area. Still Waiting for Draft Pool Regulations from Health Department
The Virginia Department of Health (VDH) is still working on the forthcoming re-write of Virginia’s statewide pool regulations. VRLTA has connected with VDH to re-iterate how important it is to hotel industry operations for these regulations to contemplate the difference between public pools and hotel pools for the purposes of lifeguard mandates. Once these draft regulations are released, VRLTA will be working closely with members to facilitate public comment from the industry regarding the proposed changes and advocacy for the common-sense course forward on the topic. VRLTA PAC Fundraising Dinner is a Huge Success VRLTA staff were grateful to host a coterie of the Commonwealth’s leaders in the hospitality, restaurant, and tourism industries in April at an evening event at L’Auberge Chez Francois, experiencing the famous hospitality of Chef Jacques Haeringer and Carol Huebner in the warm embrace of Great Falls in Northern Virginia. VRLTA PAC was able to raise over 12,000 dollars to help support the legislative champions that we rely on in the halls of the General Assembly to craft good policy and address industry threats. With every seat of the Virginia General Assembly up for grabs this year, and historic turnover in the legislature already guaranteed, VRLTA PAC remains one of our most potent tools to protect our industries from harmful legislative threats in the future. |
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