Legislative Priorities

Advanced:

• Made Cocktails-to-go Permanent – Worked with a broad coalition to make permanent Virginia’s cocktails-to-go statute for ABC licensees. We worked with stakeholders like the Distilled Spirits Council of the US, the Virginia Distillers Association, the R Street Institute and others to keep this common-sense, consumer-loved option open for our restaurants. Third-party delivery was also extended for two years while they work with ABC to improve their compliance with the existing regulations.
• G3 Eligibility for Hospitality and Culinary Management Programs in VCCS – VRLTA worked with Delegate Betsy Carr to craft language in Virginia’s budget that will make students in Virginia Community Colleges studying Hospitality Management or Culinary Management eligible to apply for the G3 last-dollar tuition assistance program operated by the state for the benefit of VCCS students and industries with critical workforce needs. This language was included in the Budget bill that was ultimately signed by the Governor.

Defeated:

• Attempt to abolish Virginia’s Tipped Wage Credit – VRLTA was instrumental in protecting Virginia’s tipped wage from an attempt to abolish it, thereby avoiding an Armageddon for the Commonwealth’s restaurants like the one seen in DC that is pushing servers to race across the Potomac and leaving both operators and customers deeply unhappy. HB335 was passed in an amended form, but ultimately vetoed by the Governor.
• Attempt to Dictate Employment Practices – VRLTA was part of a coalition working to defeat HB990/SB370, which would have established a host of new requirements for employers in how they hire and promote employees in Virginia. Those bills were ultimately passed but vetoed by the Governor.

Worked On:

• Fee transparency – VRLTA worked to protect Virginia’s work on Tourism Improvement Districts by adding clarifying language into a bill which would have made sweeping changes to how or whether fees could be charged in the course of all kinds of businesses. VRLTA also worked to clarify in that bill that long-term, predictable surcharges like auto-gratuities for large groups were not caught up in that bill. SB388 was passed in the Senate but ultimately failed to pass out of the House of Delegates.
• Polystyrene Ban Move-up – VRLTA worked in concert with a coalition of industries, including the advanced recycling industry, to defeat the proposed moving-up of the effective dates for Virginia’s polystyrene food container ban. Our efforts were ultimately unsuccessful, as the move-up of the dates was included in the Budget bill signed by the Governor. The agreed-upon dates had previously been July 1, 2028 for operators with 20 or more locations, and July 1, 2030 for those with less than 20 locations. Now those effective dates for the ban will be July 1, 2025 and July 1, 2026 respectively. VRLTA will continue to advocate for Virginia’s restaurateurs in the 2025 Legislative Session on this topic.
• Dealer Discount – VRLTA once again worked to introduce a budget amendment in to reinstate the Virginia Dealer Discount, which is a rebate that is meant to apply to the portion of merchant-paid interchange fees that correspond to the merchant’s fulfilment of the obligation to remit state sales tax. As interchange fees continue to climb, more than doubling in the past decade, this costs lays heavier and heavier on merchants, who are only trying to do their duty by the government in remitting their taxes. The language was not ultimately adopted, but VRLTA will continue to bring these efforts in future.

Advanced:

• Association Health Plans – VRLTA worked with Delegate Kathy Byron, Senator Siobhan Dunnavant, and leadership from both parties in both Chambers to pass HB2201/SB1171, which will open up healthcare options for members of associations like VRLTA. It passed both Chambers and was signed by the Governor on March 26.
• ABC Manager for Re-entering Citizens – We worked with Delegate Elizabeth Bennett-Parker of Fairfax to pass HB1730, 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 – In another bipartisan, bicameral effort, VRLTA worked with Delegate Tim Anderson and Senator Monty Mason on HB1438 and SB997 respectively. These 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

Defeated:

• ABV Labeling – HB2001 would have established onerous regulations on ABC licensees to calculate the alcohol content of cocktails on their menus. That bill was defeated in the House Committee on General Laws.
• Dram Shop Liability – VRLTA helped defeat SB1113, which would have established “dram shop“ style third party liability for ABC licensees who serve a person who subsequently injures another while driving while impaired. That bill was defeated in the Senate Committee on the Judiciary.
• Mandatory Paid Sick Leave – HB1988 would have expanded the requirement for paid sick leave to every private employer in Virginia. It was defeated in a subcommittee of the House Committee on Commerce and Energy.
• Further Prohibition of Plastic Ware – SB933 would have given localities the authority to ban the use or sale of single-use plastic bags and SB1012 would have banned any state agency from using or distributing any single-use plastic or polystyrene implements at all, starting in 2024. Both were defeated in the Senate committee process.
• Restricting Localities on Short-term Rentals – SB1391 would have drastically cut a locality’s authority to regulate short-term rentals in their jurisdictions that were managed by Virginia Realtors. It was defeated in the Senate Committee on Local Government with a letter to the Virginia Housing Commission commending it for a work group in 2023.

Worked on:

• Natural Gas Access - HB1783/SB1485 were aimed at preventing localities in the future from adopting draconian, California-style climate ordinances that would take away natural gas as an option for cooking or heating purposes. That bill, which was supported by VRLTA and others in a broad coalition, was unfortunately defeated in the Senate Committee on Commerce and Labor.
• Liability Protection for Campgrounds - HB1958 would have protected campgrounds from civil liability in cases where an injury is caused by the normal day-to-day inherent risks of camping outside. The bill was unfortunately defeated in the Senate Committee on the Judiciary.

In 2022, the strong advocacy efforts of VRLTA resulted in significant monetary support for the hospitality industry using Virginia’s allocation of ARPA and budget funding:

• Prohibiting the Unemployment Insurance Fund Builder Tax from being utilized by the Virginia Employment Commission in the determination of an employer’s 2023 UI tax rate.
• $130 million will be distributed through the Rebuild VA Grant to fund remaining applications in the pipeline.
• Enacted a Five Year Delay of the Ban on Styrofoam Carryout Containers with the polystyrene food service container ban taking effect in 2028 for large restaurant chains, and by 2030 it must be completely phased out under the proposal, thereby providing more time to try and reverse the ban and give restaurants more time to comply as they face supply chain issues and shortages
• Defeated Mandatory Paid Sick Leave that would have required employers provide five days of paid sick leave to employees.
• Championed Voluntary Private Family Leave Insurance by amending the insurance code to authorize the sale of family leave plans to employers in Virginia providing employers with another benefit that they can use to attract workers to their business.
• Limits on Governor’s Powers During Emergencies and Disasters were enacted that limit the duration of any executive order issued by the Governor under the Emergency Services and Disaster Law to no more than 45 days from the date of issuance.
• Tax Conformity and PPP Deductibility that conform Virginia’s tax code to that to that of the Internal Revenue Code, and allows for full PPP deductibility from Virginia taxes for 2021, and deductibility of Rebuild VA grants from Virginia taxes.
• Successfully advanced measures that would require short-term rental operators to submit lodging taxes monthly, like hotels and other overnight accommodations.
• Eliminated the Collection of the Accelerated Sales Tax which placed a burden on hospitality and travel businesses and will provide relief to them from this onerous requirement.
• Extension of cocktails-to-go until July 1, 2024 to support hospitality businesses and restaurants in using creative ways to overcome the impacts of the pandemic.
• Defeated Dram Shop bills that would have increased liability and insurance costs for retailers and restaurants.
• Advanced legislation to repeal burdensome and conflicting provisions of the Virginia Overtime Wage Act that was passed last year and replaces them with the overtime wage requirements from the federal Fair Labor Standards Act.

Below is a list of VRLTA accomplishments taken from the 2021 General Assembly Session:

• Promoted a delay of ABC License and Fee Reform legislation that reorganizes all ABC licenses pursuant to a three-tier structure and license privileges. The measures consolidate many licenses and common privileges, align license fee amounts with enforcement demands, and standardize quantity limits on alcohol samples.
• Advanced legislation that would close the Online Travel Agency Loophole and require that firms like Expedia remit the full amount of sales and lodging taxes to Virginia and its localities, with a portion of the sales tax collected being dedicated towards tourism funding.
• Pushed for the requirement that third party food delivery companies like UberEats, Grubhub and others must have a service agreement in place with the restaurant that authorizes the platform to process or deliver food from that restaurant.
• Successfully advocated for the extension of Cocktails To-Go through July 1, 2022 and concurrently directed the Virginia ABC to establish a workgroup of stakeholders to examine what requirements would be necessary to make cocktails to-go permanent. The workgroup then would develop a report to provide to the General Assembly during the 2022 session for their action.
• Promoted PPP deductibility in Virginia to allow PPP grants and Rebuild Virginia grants to be partially deductible from one’s taxes.
• Advanced legislation that allow localities to establish Tourism Improvement Districts (TIDs) with fees charged to businesses and used to fund tourism promotion and capital improvements. The locality must obtain approval from a majority of the businesses for the creation of the TID and fee. Collected funds would be managed by a board of the businesses or the DMO.
• Trounced proposals that would have created a mobile retailer license that would have permitted de-facto mobile bars.
• Restructured the ABC Local Special Event License into the ABC Outdoor Refreshment Area (ORA). The ORA license allows localities to establish permanent outdoor areas for alcohol consumption and would operate in a similar manner to those permitted under the local special event license. The locality must pass an ordinance in order to establish an ORA.
• Stopped legislation that would have precluded employers from having the ability to require that employees obtain a COVID-19 vaccination as a condition of employment.

Accomplishments - 2020 General Assembly Special Session

• Defeated legislation that would mandate businesses to provide paid sick leave to employees during the COVID-19 emergency.
• Trounced measures that would have repealed the 90 day threshold for transiency at lodging properties.

Accomplishments - 2020 General Assembly Session

• Advanced legislation requiring that gig economy contractors, including short term rental hosts, comply with the same income tax reporting standards as any other contractor by requiring that these contractors use the 1099-MISC ($600 reporting threshold) rather than the 1099-K ($20,000 reporting threshold).
• Trounced legislative attempts to almost double the tip wage to half of Virginia’s minimum wage (which will rise to $9.50 in May of 2021), freezing the tip wage at $2.13.
• Promoted ABC License and Fee Reform legislation that reorganizes all ABC licenses pursuant to a three-tier structure and license privileges. The measures consolidate many licenses and common privileges, aligns license fee amounts with enforcement demands, and standardize quantity limits on alcohol samples.
• Defeated measures that would mandate businesses provide paid sick leave for employees.
• Expanded ABC Local Special Event Licenses so that the number of events a locality may host increases from 12 to 16 special events per year.
• Prevented passage of legislation that sought to repeal Virginia’s Right to Work law.
• Amended the ABC law governing Commercial Lifestyle Centers to reduce the minimum acreage from 25 to 10 for a commercial development to qualify for licensure to allow guests of restaurants in that center to be able to take their alcohol with them to retail establishments in that same complex.
• Stopped legislation that would require employers to provide employee uniforms and other employment related materials.​
• Prevented legislation from passing that would prohibit polystyrene food service containers—which have been critical to helping restaurants provide take-out in a cost effective manner.
• Promoted legislation that would allow more localities to dedicate a portion of lodging tax collections towards local tourism promotion.
  Defeated legislation that would allow each locality to set its own minimum wage.

​Accomplishments - COVID-19 Pandemic Relief

• Delayed the enactment of Virginia’s minimum wage increase, elimination of limits on county lodging taxes, and regional lodging taxes in Northern Virginia and Hampton Roads to fund transportation.
• Helped create a COVID-19 Grant Relief Fund for businesses that is financed by taxes on Game of Skill machines.
• Worked with localities to garner relief from meals and lodging taxes, and establish business grant relief programs using CARES Act funding.
• Secured a one-month sales tax deferral from the Virginia Department of Taxation to help provide relief for businesses.
• Collaborated with the Virginia ABC to get relief from license and fee requirements during the pandemic, to sell alcohol to-go, and to streamline the ability of restaurants to serve alcoholic beverages in new outdoor seating areas.
• Worked with the administration to get restrictions lifted to allow restaurants to sell unprepared foods, like produce and meat, to the public.
• Convinced the administration to allow buffets to operate following the proposed guidelines that VRLTA provided.
• Supported reopening of Virginia’s public beaches for outdoor recreation.
• Advocated for all federal relief bills for the business community.