On March 9, 2024, the Virginia General Assembly adjourned following a 60-day session during which lawmakers voted on over 3,500 pieces of legislation and negotiated a two-year state budget. The 2024 session was marked by some bipartisan cooperation; however, the razor-thin Democratic majority in both chambers triumphed by passing legislation on gun control, abortion rights, and minimum wage. This suggests Democrats may not have enough votes to override a governor’s veto, and Gov. Glenn Youngkin will need to approve many bills that passed out of the legislature with a close partisan vote.
Wizards and Capitals Arena Deal
In December, Youngkin announced a deal to bring the NBA Wizards and the NHL Capitals to Alexandria after Monumental Sports & Entertainment owner Ted Leonsis decided to part ways with Washington, D.C. The $2 billion proposal faced opposition from some residents and support from others, including some lawmakers. Senate Finance and Appropriations Chair Louise Lucas’ (D-Portsmouth) concerns grew throughout the session about the negative impact on taxpayers, Virginia’s AAA bond ratings, and overall uncertainty surrounding the deal. Despite the governor’s attempts to negotiate with the legislature, leaders determined the deal was too costly for Virginians. The final budget did not include incentives or authority for the arena.
The governor still has some options to keep his plan alive. He could introduce a budget amendment during the reconvened session or call a special session for the General Assembly to act on a stand-alone arena bill. There also is a possibility that Youngkin vetoes the entire budget because of the language removal, which would mean starting over the appropriations process. The exclusion may also result in Youngkin exercising his veto power to halt other Democratic priority legislation.
Marijuana
A bill addressing the legalization of retail marijuana sales in Virginia has been sent to the governor’s desk. House Bill 698 and Senate Bill 448 establish regulatory framework for cultivation, sale, and possession for personal use. Under the bills, licensing applications can be accepted as early as September 1, 2024; however, no retail marijuana sales can occur until May 1, 2025. Both bills include measures aimed at promoting equity and social justice such as prioritizing licensing for historically economically disadvantaged communities.
Despite Virginia’s previous adoption of a law permitting cannabis use, possession, and home cultivation three years ago, Youngkin has remained reserved about fully endorsing further reform. However, as part of his action on seven-day legislation, Youngkin did veto a bill aimed at preventing the state from using marijuana as sole evidence of child abuse or neglect.
Minimum Wage
Lawmakers approved House Bill 1 and Senate Bill 1 to raise the state minimum wage to $15 per hour by 2026 along party lines. Supporters argued that this increase is necessary; however, opponents expressed concerns about its potential impact on small businesses and employment levels. Sen. Louise Lucas (D-Portsmouth), who introduced the bill, cautioned the governor about potential changes in the Democrats’ cooperation if he vetoes it. While Youngkin has not definitively stated his stance, he has indicated his general opposition to minimum wage increases, citing his belief in the market’s effectiveness.
Skill Games
The Virginia General Assembly has approved a bill that overturns the state’s prohibition on skill games, also known as ‘gray machines’. Sponsored by Sen. Aaron Rouse (D-Virginia Beach), Senate Bill 212 aims to regulate these games by imposing a 25% tax rate on gross revenue and setting limits on the number of machines allowed per establishment. The proposal received a 31-9 vote in the Senate and narrowly passed the House of Delegates with a vote of 51-45. Supporters, who included owners of gas stations and restaurants, said the ban on skill games took away revenue their businesses needed to survive the challenges of the COVID-19 pandemic. However, opponents expressed concerns about potential negative consequences for vulnerable populations with gambling addictions.
The bill now awaits the Youngkin’s decision as it moves to his desk for approval. While the governor’s office had previously expressed reservations about the proposed legislation, he has not yet commented on the final version.
Data Centers
This session saw a flurry of legislative activity focused on data centers. Legislators from Prince William County introduced several bills following the county board of supervisors’ recent approval to build a new data center complex. These bills encompassed a wide array of topics from revising the state’s tax regulations to mandating that data center operators adhere to power usage effectiveness standards, along with addressing issues such as water usage and zoning permissions. No legislation was passed; rather, all bills were referred to the ongoing study conducted by the Joint Legislative Audit and Review Commission. With the commission set to deliver its recommendations to the legislature by year end, it is anticipated that data centers will once again dominate discussions in the 2025 General Assembly Session.
Artificial Intelligence
The legislature passed Senate Bill 487 requiring the Joint Commission on Technology and Science to analyze the use of artificial intelligence by public bodies and whether the state should create a Commission on Artificial Intelligence. This comes after state lawmakers studying AI for several years, beginning with the establishment of the Artificial Intelligence Subcommittee in 2020. Led by Del. Cliff Hayes (D-Chesapeake), the subcommittee aims to provide legislators with a comprehensive understanding of the implications of AI in Virginia. Hayes emphasizes the need for proactive measures due to the rapid evolution of AI, advocating for a balanced approach to its development.
Class Actions
Senate Majority Leader Scott Surovell (D-Fairfax) and Del. Marcus Simon (D-Fairfax) introduced legislation that allows class action lawsuits in Virginia state courts, offering individuals a way to take legal action against businesses or entities. House Bill 418 and Senate Bill 259 outline the steps and rules for starting and handling class action cases, including notifying class members and approving settlements. Virginia and Mississippi are currently the only two states that do not permit such suits in their state courts.
K-12 and Higher Education
Virginia allocated $2.5 billion towards public education with a focus on mental health programs and expanding the K-12 curriculum on environmental literacy and opioid prevention. Acknowledging the need to retain education workers and enhance competitiveness, lawmakers included a 3% raise in the biennial budget. Additionally, the budget agreement consolidated funding for various early childcare education programs to help provide flexibility in delivery models. Legislators passed legislation to prohibit preferential treatment based on legacy or donor status in higher education.
Seven Day Legislation
As part of a strategy to raise their leverage with the governor, the Democratic majorities of each chamber sent numerous bills to Youngkin early enough that he had to act by the last weekday of session at midnight. His actions on those, they said, would reflect their position on some of his budget priorities. Those seven-day bills as they are known involved mundane as well as hot button issues. The governor chose to veto legislation regarding firearms, prohibiting book banning, and voter roll maintenance.
Bills Continued to 2025
This year, over 400 bills were continued to 2025 and will likely be discussed next January. In addition to the data center bills, issues ranging from cruise ship casino gaming (House Bill 1478 and Senate Bill 689) to the prohibition of non-compete agreements (Senate Bill 360) will be worked on in the interim and debated again early next year.
The governor has the authority to sign, veto, or propose amendments to all legislation. If the governor takes no action on a bill, then it becomes law without his signature. Legislators return to Richmond on April 17 to consider proposed amendments and vetoes.
