Taxable income apportionment; retail companies. Provides that, beginning with taxable year 2023, affiliated corporations filing on a consolidated basis may elect to apportion the taxable income of all members of the affiliated group using sales factor alone even if one or more members of the affiliated group would be required to use different apportionment factors if filing separate returns. The election is valid only in taxable years for which 80 percent or more of the affiliated group's sales is derived from retail company activities.

Provisional licenses issued to providers of behavioral health and developmental services; notice requirement; waiver of appeal right by consent agreement. Requires the Department of Behavioral Health and Developmental Services to direct any provider who is issued a provisional license to review all pertinent state and federal regulations and other contractual agents with payor sources to determine any limitations that may be placed on such provider by any other agency of the Commonwealth, including restrictions on reimbursement that may be imposed by the Department of Medical Assistance Services. The bill requires that a consent agreement signed by such provider waiving his right to appeal a provisional license issuance decision shall direct the provider to review all pertinent state and federal regulations and contractual agents to determine any restrictions on reimbursement that may be imposed by other state agencies or payor sources and that a copy of the signed consent agreement be provided to the Department of Medical Assistance Services. The bill requires the Department of Behavioral Health and Developmental Services and the Department of Medical Assistance Services to develop a joint agency protocol that requires the Department of Medical Assistance Services to collaborate and consult with the Department of Behavioral Health and Developmental Services prior to imposing limitations on a provider that could lead to restrictions on reimbursement. Provisional licenses issued to providers of behavioral health and developmental services; notice requirement; waiver of appeal right by consent agreement. Requires the Department of Behavioral Health and Developmental Services to direct any provider who is issued a provisional license to review all pertinent state and federal regulations and other contractual agents with payor sources to determine any limitations that may be placed on such provider by any other agency of the Commonwealth, including restrictions on reimbursement that may be imposed by the Department of Medical Assistance Services. The bill requires that a consent agreement signed by such provider waiving his right to appeal a provisional license issuance decision shall direct the provider to review all pertinent state and federal regulations and contractual agents to determine any restrictions on reimbursement that may be imposed by other state agencies or payor sources and that a copy of the signed consent agreement be provided to the Department of Medical Assistance Services. The bill requires the Department of Behavioral Health and Developmental Services and the Department of Medical Assistance Services to develop a joint agency protocol that requires the Department of Medical Assistance Services to collaborate and consult with the Department of Behavioral Health and Developmental Services prior to imposing limitations on a provider that could lead to restrictions on reimbursement.

Real property tax; notice of rate and assessment changes. Requires certain information to be included in the notice that a locality is required to send to taxpayers after conducting a reassessment of real property. The bill provides that, in any county, city, or town that conducts an annual or biennial reassessment of real estate or in which reassessment of real estate is conducted primarily by employees of the county, city, or town under direction of the commissioner of the revenue and that has not yet established its real property tax rate when such notice is sent, the locality shall set out in the notice the effective tax rate increase. Real property tax; notice of rate and assessment changes. Requires certain information to be included in the notice that a locality is required to send to taxpayers after conducting a reassessment of real property. The bill provides that, in any county, city, or town that conducts an annual or biennial reassessment of real estate or in which reassessment of real estate is conducted primarily by employees of the county, city, or town under direction of the commissioner of the revenue and that has not yet established its real property tax rate when such notice is sent, the locality shall set out in the notice the effective tax rate increase.

Public institutions of higher education; guaranteed admission for certain veterans; report. Requires the governing board of each public institution of higher education in the Commonwealth to provide for the guaranteed admission of any eligible veteran applicant, defined in the bill as any applicant who (i) is a veteran member of the uniformed services, (ii) is permanently and totally disabled as a result of his active duty service in the uniformed services, and (iii) (a) graduated from a high school in the Commonwealth or (b) graduated from a high school in a state other than the Commonwealth and served in the uniformed services while assigned to a location in the Commonwealth. The bill also requires each public institution of higher education to submit an annual report to the General Assembly on or before December 31 of each year detailing certain information relating to veteran applicants and enrollees. Public institutions of higher education; guaranteed admission for certain veterans; report. Requires the governing board of each public institution of higher education in the Commonwealth to provide for the guaranteed admission of any eligible veteran applicant, defined in the bill as any applicant who (i) is a veteran member of the uniformed services, (ii) is permanently and totally disabled as a result of his active duty service in the uniformed services, and (iii) (a) graduated from a high school in the Commonwealth or (b) graduated from a high school in a state other than the Commonwealth and served in the uniformed services while assigned to a location in the Commonwealth. The bill also requires each public institution of higher education to submit an annual report to the General Assembly on or before December 31 of each year detailing certain information relating to veteran applicants and enrollees.

Constitutional amendment (first reference); qualifications of voters; right to vote; persons not entitled to vote. Provides that every person who meets the qualifications of voters set forth in the Constitution of Virginia shall have the fundamental right to vote in the Commonwealth and that such right shall not be abridged by law, except for persons who have been convicted of a felony and persons who have been adjudicated to lack the capacity to understand the act of voting. A person who has been convicted of a felony shall not be entitled to vote during any period of incarceration for such felony conviction, but upon release from incarceration for that felony conviction and without further action required of him, such person shall be invested with all political rights, including the right to vote. Currently, in order to be qualified to vote a person convicted of a felony must have his civil rights restored by the Governor or other appropriate authority. The amendment also provides that a person adjudicated by a court of competent jurisdiction as lacking the capacity to understand the act of voting shall not be entitled to vote during this period of incapacity until his capacity has been reestablished as prescribed by law. Currently, the Constitution of Virginia provides that a person who has been adjudicated to be mentally incompetent is not qualified to vote until his competency is reestablished.

Public pools; regulations. Directs the Board of Health to adopt regulations governing swimming pools and other water recreational facilities operated for public use, including swimming pools and other water recreational facilities operated in conjunction with a tourist facility or health spa.

Official emblems and designations; state pony. Designates the Chincoteague Pony as the official pony of the Commonwealth.

Use of handheld personal communication devices in certain motor vehicles. Clarifies the penalty structure for a first offense and a second or subsequent offense of using a handheld personal communication device in certain motor vehicles, as well as the mandatory fine for a violation within a highway work zone, to accommodate the Supreme Court's case management system. The bill contains technical amendments. This bill is declarative of existing law and is identical to

Department of Corrections; operations and costs. Establishes a formula for determining the estimated appropriations in a fiscal impact statement of any bill that adds a new felony for which imprisonment or commitment is authorized. The bill also provides that the cost of goods and services sold in stores in state correctional facilities shall not exceed 10 percent of the cost of the typical market rate for such goods and services in major retail stores that are not affiliated with any correctional facility and that the Department shall not receive any commissions or markups from the goods and services sold.

Employee protections; medicinal use of cannabis oil. Amends the provision that prohibits an employer from discriminating against an employee for such employee's lawful use of cannabis oil pursuant to a valid written certification issued by a practitioner for the treatment or to eliminate the symptoms of the employee's diagnosed condition or disease, with certain exceptions, by specifying that such use must conform to the laws of the Commonwealth and by excluding the employees of the Commonwealth and other public bodies from such protections.

Department of Behavioral Health and Developmental Services; licensed provider reporting requirements. Directs the Department of Behavioral Health and Developmental Services to amend its regulations to require providers licensed by the Department to report allegations of abuse, neglect, and exploitation and incidents classified as Level II and Level III incidents by the end of the next business day following the receipt of the allegation or discovery of the Level II or Level III incident.

Virginia Residential Landlord and Tenant Act; rent increase during tenancy; conditions. Provides that a rental agreement shall not contain provisions that the tenant agrees to pay any increase in rent during the term of a written lease unless such increase is agreed to in a separate, written document signed by the tenant and the landlord that includes (i) the new amount of rent to be charged to the tenant, (ii) the date upon which the rent increase becomes effective, and (iii) any additional terms or benefits to the tenant agreed to as consideration for such increase in rent.

2023 Session operating resolution.

Education improvement scholarships tax credits; eligible student with a disability. Removes, beginning in taxable year 2024, the requirement that an eligible student with a disability also qualify as a student under the education improvement scholarships tax credit program and expands eligibility of students with disabilities to include those who are residents of Virginia and for whom an Individualized Education Plan has been written and finalized. The bill also provides that beginning in taxable year 2024 the aggregate amount of scholarships provided to each eligible student with a disability for a single school year from eligible donations shall not exceed the lesser of (i) the actual qualified educational expenses of the eligible student with a disability or (ii) 300 percent of the per pupil amount distributed to the local school division (in which the eligible student with a disability resides) for the state's share of the standards of quality costs using the composite index of local ability-to-pay. Such scholarships may only be provided to an eligible student with a disability who is attending a school licensed by the Department of Education to serve students with disabilities that complies with nonpublic school accreditation requirements, is exempt from taxation as a § 501(c)(3) organization, and does not receive public funds to supplement the cost of the education of the eligible student with a disability who is receiving the scholarship.

Taxation in the Commonwealth. Makes numerous changes to Taxation in the Commonwealth. Makes numerous changes to the Commonwealth's tax structure with the intention of eliminating the personal income tax. The bill provides that beginning January 1, 2025, all income tax rates shall be reduced by 1.15 percent each year that a tax reduction condition, defined in the bill, is met. Under the bill, tax rate reductions shall occur each year and shall be cumulative until reaching zero. The tax reduction condition would be met and the tax rate reduction would occur in any fiscal year that the amount of general fund revenues collected plus the amount of additional general fund revenues, defined in the bill, is greater than or equal to the amount of general fund appropriations made for such fiscal year plus the amount of revenue reduction that would result from a 1.15 percent reduction in the individual income tax rate. Additional general fund revenues are defined in the bill as general fund revenues that would be generated as a result of the tax policy changes resulting from the bill. The bill would increase the sales and use tax rate to 5.3 percent beginning July 1, 2024, and would increase this rate by one percent each year until reaching 9.3 percent beginning July 1, 2028. The bill would increase the tax on cigarettes by three cents per cigarette and would double the statutory tax rate on tobacco products, with the revenues from such taxes to be deposited in the general fund. The motor vehicle sales and use tax rate would be increased by one percent beginning July 1, 2024, and would increase by one percent each year until reaching an additional five percent over current rates beginning July 1, 2028. The motor fuels tax would also be increased by five cents per gallon beginning July 1, 2024, with additional five cents per gallon increases until reaching an additional 25 cents per gallon beginning July 1, 2028. The bill requires all additional revenue generated by such tax increases to be deposited in the general fund. Finally, the bill directs the Secretary of Finance to convene a workgroup to recommend additional tax policy changes that would be needed to eliminate personal income tax liability.