Del. Ian Lovejoy

Taxation; rate of interest. Provides that (i) the rate of interest on omitted taxes and assessments is equal to the Underpayment Rate established by the Internal Revenue Code and (ii) the rate of interest on refunds is equal to the Overpayment Rate for noncorporate taxpayers established by the Internal Revenue Code. Current law provides that (a) the rate of interest on omitted taxes and assessments is equal to the Underpayment Rate plus two percent and (b) the rate of interest on refunds is equal to the Overpayment Rate for noncorporate taxpayers plus two percent.

Maddy summaryHB 2775 clarifies the legal definition of "hemp product" under state law. This bill directly affects hemp product manufacturers, retailers, and regulatory agencies by establishing a clear standard for what qualifies as a hemp product. The key provision defines hemp products based on specific cannabinoid levels and processing methods, removing ambiguity in current regulations. This clarification aims to streamline compliance and enforcement without introducing new restrictions or requirements.

Certain government and civics courses; civics diploma seal of excellence; instruction on local government. Requires the Board of Education to include in the Standards of Learning for Virginia and United States Government for grade 12 and requires each school board to provide as a part of any Virginia and United States Government course or civic education course offered to students in grade 12 an explanation of the purpose, role, responsibility, and identity of local constitutional officers and local governing bodies, including city councils, town councils, boards of supervisors, and school boards. The bill also requires the Board of Education to consider in its criteria for awarding a diploma seal for excellence in civics education and understanding of the state and federal constitutions and the democratic model of government the successful completion of government or civics courses that include instruction on the structures and functions of local government.

Nationally Certified School Psychologist Program established; incorporation into National Teacher Certification Incentive Reward Program and Fund. Establishes the Nationally Certified School Psychologist Program and incorporates such program into the existing National Teacher Certification Incentive Reward Program. The bill also renames the National Teacher Certification Incentive Reward Program Fund as the National Teacher Certification Incentive Reward Program and Nationally Certified School Psychologist Program Fund (the Fund) and expands the purpose for which disbursements may be made from the Fund to include the award of incentive grants to school psychologists obtaining national certification from the National Association of School Psychologists consisting of an initial state-funded award of $5,000 and a subsequent award of $2,500 each year for the life of the certificate.

Virginia Retirement System; enhanced retirement benefits for 911 dispatchers. Allows local governments to provide enhanced retirement benefits for hazardous duty service to full-time salaried 911 dispatchers. The bill provides that such enhanced retirement benefits apply only to service earned as a full-time salaried 911 dispatcher on or after July 1, 2026, but allows an employer, as that term is defined in relevant law, to provide such enhanced retirement benefits for service earned as a full-time salaried 911 dispatcher before July 1, 2026, in addition to service earned on or after that date. The bill has a delayed effective date of July 1, 2026.

Retail sales and use tax; commercial and industrial exemptions; data centers. Provides that, between July 1, 2025, and July 1, 2030, the retail sales and use tax exemption for computer equipment or enabling software purchased or leased for use in a data center shall not apply for such equipment if it is purchased or leased for use in a data center that is constructed after July 1, 2025, in Planning District 8.

Virginia taxable income; standard deduction; sunset. Removes the sunset on elevated standard deduction amounts for single individuals and married persons that is scheduled to expire for taxable years beginning on and after January 1, 2026.

Authority of Attorney General; criminal cases; criminal sexual assault and commercial sex trafficking committed against children. Authorizes the Attorney General to institute or conduct criminal prosecutions in cases involving a violation of criminal sexual assault or commercial sex trafficking when such crimes are committed against children.

Maximum number of judges in each judicial district. Increases from five to six the maximum number of authorized general district court judges in the Thirty-first Judicial District. This bill is a recommendation of the Committee on District Courts.

Campaign finance; prohibited personal use of campaign funds; complaints, hearings, civil penalty, and advisory opinions. Prohibits any person from converting contributions to a candidate or his campaign committee for personal use. Current law only prohibits such conversion of contributions with regard to disbursement of surplus funds at the dissolution of a campaign or political committee. The bill provides that a contribution is considered to have been converted to personal use if the contribution, in whole or in part, is used to fulfill any commitment, obligation, or expense that would exist irrespective of the person's seeking, holding, or maintaining public office but allows a contribution to be used for the ordinary and accepted expenses related to campaigning for or holding elective office, including the use of campaign funds to pay for the candidate's dependent care expenses that are incurred as a direct result of campaign activity. The bill provides that any person subject to the personal use ban may request an advisory opinion from the State Board of Elections on such matters. The bill directs the State Board of Elections to adopt emergency regulations similar to those promulgated by the Federal Election Commission to implement the provisions of the bill and to publish an updated summary of Virginia campaign finance law that reflects the State Board of Elections' and Attorney General's guidance on the provisions of such law that prohibit the personal use of campaign funds and any new regulations promulgated by the State Board of Elections. This bill was incorporated into HB 2165.