By Phil Boykin, VBWA President & CEO

Last week was the official halfway point of the General Assembly: Crossover, when the House of Delegates and Senate can only take up legislation from the opposite chamber, other than the budget.

Speaking of the budget, the House and Senate adopted their respective proposals. The competing budgets are closer together on critical spending proposals than most observers can remember, which bodes well for a quick deal.

The biggest issue of contention between the two budgets is not money, but policy proposals over gaming. The

House budget creates a new agency to oversee most gambling, and the Senate budget legalizes “skill games.” Most long-time experts expect the budget conferees to quickly work through those policy differences. We’ll see if that’s how things work out.

In addition, the Speaker of the House, Del. Don Scott (D-Portsmouth), made headlines by establishing a new legislative committee to make policy recommendations at the state level in responses to federal spending freezes and worker furloughs. By most measures, Virginia receives more federal dollars per capita than any other state in the union, so reduced federal spending is sure to have a real impact on the Commonwealth’s finances. Further, with hundreds of thousands of federal employees residing in the Commonwealth, it’s just good politics.

As always during the Session, we are meeting weekly with the VBWA Board of Directors to review bills to determine the VBWA’s positions. below the photo gallery, find highlights of those bills of interest introduced. Should you want more details, you can go directly to the bill summary, bill history and bill text by clicking the bill number.

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HB1946 (Hope) & SB1060 (Ebbin): Policing Nicotine

Del. Patrick Hope (D-Arlington) has tried for years to give a government entity the ability to license and enforce state and federal laws related to underage sales of nicotine products. HB1946 is his latest attempt, and this year, Sen. Adam Ebbin (D-Alexandria) joined with his own bill. Initially, Del. Hope put nicotine enforcement under ABC without adequate funding, meaning it could impact trade practice enforcement.

• The latest:  The House amended Hope’s bill to essentially give ABC some enforcement over nicotine, but mostly directs them to study the issue and come up with a recommendation for how they could take it on fully and at what cost. There is some “seed” money from a recent Juul e-cigarettes settlement that could be used.  The Senate generally chose to go forward with the original bill, however, at VBWA’s request, put language in the Senate budget saying that any proceeds to fund the new enforcement could not come from existing ABC alcohol enforcement. They did not say where the money would be sourced from, so it’s assumed some from the Juul settlement and some from ABC “profits.” Bottom line: This legislation will need to be worked out in conference. 
• VBWA position: Monitoring, and so far pleased with the direction.

SB909 (Stanley): Alcohol/Nicotine Advertising at Motor Speedways

Sen. Bill Stanley (R-Franklin) wants to remove a long-standing prohibition of advertising alcohol and nicotine products at motor sports facilities.

• The latest: After lengthy testimony from Sen. Stanley, several racetrack owners and others in favor of the bill, the VBWA testified alone in opposition. The bill was defeated 9-5-1. Sen. Stanley promises to return next year with a similar proposal. 
• VBWA position: Opposed. We recognize this is a complicated issue, but we have concerns around increased marketing to underage consumers, as well as opening the door to allowing for alcohol advertising that is currently prohibited in other sports and entertainment venues.

ABC Enforcement

HB1925 (Ward) and SB1297 (Craig): Shoplifting Enforcement

After years of relying on local law enforcement to handle policing of shoplifting in their retail stores, ABC is getting pushback from local law enforcement who resent having to dedicate resources to an entity with its own law enforcement division. The bill patrons are Del. Jeion Ward (D-Hampton) and Sen. Christie New Craig (R-Chesapeake)

• The latest: ABC put a $6 million price tag on this bill, meaning it would need to go through a budget process to survive. As a result, the House bill was “stricken” at the request of the patron and the Senate bill was left in committee without action, with the consent of the patron.
• VBWA position: Monitoring, as it could impact the ability of ABC to enforce trade practice issues.

ABC Tied House Issues

HB1703 (Bulova) & SB834 (Favola): Tied House Clarification

Both bills are identical and clarifying in nature. They were introduced to protect ABC’s long-standing interpretation of the law that prevents a retailer from carrying product from a manufacturer when there is common ownership. It is feared that the existing rules could be challenged in the courts; therefore, VBWA is getting in front of the issue to modernize the code to reflect current practice. The bills are carried by Del. David Bulova (D-Fairfax) and Sen. Barbara Favola (D-Arlington).

• The latest: There is no known opposition. Both bills have passed with unanimous support. The Senate version is headed to the Governor, and could become law without his signature.  The House version is under review by the Senate.
• VBWA position: ABC is in favor of the legislation, with the VBWA and Virginia Wine Wholesalers Association strongly in support.

Bottle Bills/E.P.R./Litter Tax

HJ488 (Krizek): Litter Tax Modernization Study

With bottle bill and Extended Producer Responsibility (EPR) legislation being pushed across the nation, we’ve been working with legislators on modernizing the state’s litter tax as a way to counter the proposals. We expected it to be an issue in the 2026 General Assembly, however, Del. Paul Krizek (D-Fairfax) decided to put in a study on the subject this year.

• The latest: The study passed the House 60-37 and has been referred to the Senate Rules committee. Because it is a Resolution, it will not go to the Governor for his approval, as he’d likely oppose.
• VBWA position: Joining other industry groups such as the Virginia Bottlers Association, the VBWA Board voted to support the study.

Cannabis

HB2485 (Krizek) & SB970 (Rouse): Cannabis Retail Marketplace

There are multiple bills impacting how the Commonwealth will move forward with cannabis sales. However, the Krizek and Sen. Aaron Rouse (D-Virginia Beach) “marketplace” bills are the most comprehensive to date and the most likely to get to the Governor. Both create a legal framework for a cannabis marketplace. Similar bills passed in the 2024 Session, but were promptly vetoed by Gov. Youngkin. We expect the same this year for any cannabis bills that hit the Governor’s desk.

• The latest: Both the House and Senate versions passed their respective chambers on largely party-line votes and are working their way through the opposite chambers. It’s expected the Governor will veto the bills.
• VBWA position: Monitoring.

HJ497 (Krizek): Establishes the Joint Commission to Oversee Transition of a Retail Marketplace for Cannabis

The commission would oversee the transitioning of the Commonwealth into a retail cannabis market.

The resolution was passed the House 54-43. It was referred to Senate Rules and if it passes the Senate, it will not go to the Governor, since it creates a legislative commission.

Employment Issues

HB1730 (Delaney): Civil actions; liability of employer to vulnerable victim

The legislation by Del. Karrie Delaney (D-Fairfax) would provide that, in an action for personal injury or death by wrongful act brought by a vulnerable victim, the finder of fact at trial shall determine whether an employer shall be vicariously liable for the tortious conduct of such employer’s employee based upon a finding of certain factors. The bill says the determination of issues shall be questions of fact for which the plaintiff shall bear the burden of proof and shall be subject to any available affirmative defenses. The bill provides that its provisions shall apply only to a cause of action that accrued on or after July 1, 2025.

HB1980 (Martinez): Heat Related Illness

This legislation requires the Safety and Health Codes Board to adopt regulations establishing standards designed to protect employees from heat illness. The bill from Del. Fernando Martinez (D-Loudoun) authorizes a person aggrieved by a violation of its provisions or the regulations promulgated thereunder to seek to obtain injunctive relief, to recover statutory damages of $1,000, or both, in an action commenced within one year of the cause of action. This is not a new issue and being pushed at the federal level as well.

• The latest: The bill passed the House on a straight party vote and has passed Senate Commerce and Labor 9-6.
• VBWA position: Monitoring.

HB1766 (Martinez) & HB1767 (Martinez): Unemployment Benefits

Del. Martinez is proposing raising the maximum weekly benefit by $100 and increasing the length of payout to 26 weeks.

• The latest: Both bills passed the House; HB 1766 passed 51-47, and HB1767 passed 52-46, and each has passed Senate Commerce and Labor.
• VBWA position: Monitoring for the potential impact on unemployment insurance rates.

HB2481 (Krizek) & SB1112 (Williams-Graves) Workers’ Comp (Repetitive Motion)

Virginia is the last state in the nation to prohibit payout from its workers’ comp program for “repetitive motion” injuries. This is a top priority for labor advocates, so many business groups are pushing a modest proposal to counter their initiatives. The bills are backed by Del. Krizek and Sen. Angelia Williams-Graves (D-Norfolk).

• The latest: The estimated cost to the state was said to be an additional $20 million; both bills were left in committee and dead for the Session.
• VBWA position: Monitoring.

Taxes

HB1755 (Watts): Taxing Services

Del. Vivian Watts (D-Fairfax) is attempting to modernize the Virginia tax code and capture the service industry.

• The latest: After realizing the bill was not ready for “primetime,” Del. Watts struck her bill, killing it for the session.
• VBWA position: Opposed. As drafted, her bill will apply a sales tax on all products delivered to beer wholesalers’ retail accounts. We do not believe that this is the intention of the patron, and are discussing with her.

SB970 (Rouse): Second Chances

Sen. Rouse, who is also running for lieutenant governor, is proposing a tax credit for any employer that hires someone previously convicted of a crime and re-entering society.

• The latest: The bill was left in Finance and dead for the Session.
• VBWA position: Support.