Pari-mutuel wagering; historical horse racing; percentage retained for distribution. Provides that with respect to all authorized historical horse racing terminals, of the amount that a horse racing licensee retains from wagering on historical horse racing pools and in addition to the current distribution required under law, 0.0125 percent each shall be distributed to the Shenandoah County Agricultural Foundation and the Great Meadow Foundation to support the promotion, education, maintenance, and safety of horse racing at such facilities. The bill also increases the distribution percentage provided from the amount that a horse racing licensee retains from wagering on historical horse racing pools to the Problem Gambling Treatment and Support Fund from 0.01 percent to 0.025 percent.

Department of Medical Assistance Services; reimbursement rates for Early Intervention Program for Infants and Toddlers with Disabilities; work group; report. Directs the Department of Medical Assistance Services to convene a work group of relevant stakeholders to assess and make recommendations related to reimbursement rates for the federal Early Intervention Program for Infants and Toddlers With Disabilities. The bill requires the work group to report its recommendations to the Chairmen of the House Committee on Health and Human Services and the Senate Committee on Education and Health by November 1, 2025.

Deaths by suicide of veterans or military service members; inquiry by State Registrar of Vital Records; Department of Veterans Services annual report. Requires the State Registrar of Vital Records, when a death certificate is filed and lists suicide as the cause of death, to make an inquiry into whether the decedent was a veteran or military service member and to provide any information concerning the suicide of such veteran or military service member to the Department of Veterans Services. The bill also provides that the Commissioner of the Department of Veterans Services may request, and the Office of the Chief Medical Examiner shall deliver to the Commissioner, a copy of an autopsy report of a veteran or military service member whose cause and manner of death is determined to be a suicide. The bill also reestablishes the position of Suicide Prevention Coordinator as the Suicide Prevention Program and requires such Program to, in coordination with the State Police, compile and analyze data relating to such suicides to be included in the annual report submitted by the Department to the Governor and the General Assembly.

Department of Criminal Justice Services; training on certain arrests. Requires the Department of Criminal Justice Services to establish a training course for law-enforcement agencies and officers on the discretion such officers can exercise regarding certain arrests. The bill requires that such training include (i) instruction on the scope and nature of law-enforcement officer discretion in arrest decisions, with particular emphasis on encounters with individuals experiencing a mental health crisis, including individuals currently subject to an emergency custody order, a temporary detention order, or an involuntary admission order, and (ii) instruction on the immediate and long-term effects of arrests on individuals in need of mental health services due to a mental health crisis, including impacts on treatment outcomes as identified in substantially accepted peer-reviewed research literature by July 1, 2026. The bill requires any person employed as a law-enforcement officer prior to July 1, 2026, to complete such in-person or virtual training by January 1, 2027, and biennially thereafter, and any person employed as a law-enforcement officer after July 1, 2026, to complete the training within one year of his date of hire and biennially thereafter.Lastly, the bill directs the Criminal Justice Services Board to promulgate regulations pursuant to relevant law requiring in-person or virtual training to special conservators of the peace on the provisions of the bill and other existing statutes related to the arrest and prosecution of persons with mental or behavioral health disorders by July 1, 2026. The bill requires any person appointed as a special conservator of the peace prior to July 1, 2026, to complete the training by January 1, 2027, and biennially thereafter, and any person appointed as a special conservator of the peace after July 1, 2026, to complete the training within one year of his appointment and biennially thereafter. As introduced, this bill was a recommendation of the Behavioral Health Commission. This bill is identical to SB 1194.

Procurement; cancellation of bids. Provides that a public body may include a statement in an Invitation to Bid, a Request for Proposal, or any other solicitation of an intention to cancel any such invitation, request, or solicitation if, in the estimation of the public body, all responsive bids exceed by at least 50 percent the current price for such goods or services as offered to the private sector.

Access to Housing Task Force; report. Establishes the Access to Housing Task Force for the purpose of evaluating short-term and long-term access to housing in the Commonwealth. The bill directs the Task Force to report its findings and conclusions to the Governor and General Assembly no later than November 1, 2025, regarding its activities and recommendations.

Virginia Residential Landlord and Tenant Act; landlord remedies; noncompliance with rental agreement. Increases from five days to 14 days the mandatory waiting period after a landlord serves written notice on a tenant notifying the tenant of his nonpayment of rent and of the landlord's intention to terminate the rental agreement if rent is not paid before the landlord may pursue remedies for termination of the rental agreement. This bill is identical to SB 812.

Virginia Residential Landlord and Tenant Act; landlord obligations; access of tenant to broadband services. Prohibits the landlord of a multifamily dwelling unit from accepting payment from a provider of broadband service for granting such provider mere access to the landlord's tenants or giving such tenants mere access to such service. The bill also prohibits a landlord from demanding or accepting payment from tenants in exchange for such a service unless the landlord itself is the provider of the service.

Sale and distribution of plastic carryout bags by grocery stores prohibited; civil penalty. Prohibits any grocery store, as defined in the bill, from selling or distributing any plastic carryout bag, as defined in the bill, to its customers on or after January 1, 2027, unless such bag qualifies as an exempt bag, as defined in the bill. The bill provides that any grocery store that violates this provision shall be issued by the Department of Environmental Quality a written warning for the first violation and shall be subject to a civil penalty not to exceed $500 for a second and each subsequent violation as determined by the Director of the Department. The bill also requires any grocery store, no later than January 1, 2027, to develop, implement, and maintain a program to encourage its customers to utilize reusable bags, as defined in the bill.

Virginia Residential Landlord and Tenant Act; enforcement by localities. Provides that if a condition exists in a rental dwelling unit that constitutes a material noncompliance by the landlord with the rental agreement or with any provision of law that, if not promptly corrected, constitutes a fire hazard or serious threat to the life, health, or safety of tenants or occupants of the premises, a locality may institute an action for injunction and damages to enforce the landlord's duty to maintain the rental dwelling unit in a fit and habitable condition, provided that (i) the property where the violation occurred is within the jurisdictional boundaries of the locality and (ii) the locality has notified the landlord who owns the property, either directly or through the managing agent, of the nature of the violation and the landlord has failed to remedy the violation to the satisfaction of the locality within a reasonable time after receiving such notice.

Tax exemptions; Confederacy organizations. Eliminates the exemption from state recordation taxes for the Virginia Division of the United Daughters of the Confederacy and eliminates the tax-exempt designation for real and personal property owned by the Virginia Division of the United Daughters of the Confederacy, the General Organization of the United Daughters of the Confederacy, the Confederate Memorial Literary Society, the Stonewall Jackson Memorial, Incorporated, the Virginia Division, Sons of Confederate Veterans, and the J.E.B. Stuart Birthplace Preservation Trust, Inc.

Motor vehicle dealers; recall and warranty costs; right of first refusal. Clarifies various requirements for the reimbursement of motor vehicle dealers for costs related to vehicle recalls and warranties. The bill also clarifies the timeline for a manufacturer or distributor to notify a dealer that it is exercising its right of first refusal related to the sale or transfer of a dealership. This bill is identical to SB 1308.

Study; JLARC to study Virginia's campaign finance system; independent agency; report. Directs the Joint Legislative Audit and Review Commission (JLARC) to study Virginias's campaign finance system. In its study, JLARC is directed to (i) identify any legal, technical, and staffing shortcomings in the current campaign finance and ethics systems relating to (a) reporting and investigating violations, (b) enforcing legal and regulatory requirements, and (c) implementing directions from state government at the local level and (ii) determine whether current budgetary allocations are sufficient to effectively carry out such aspects of the campaign finance and ethics systems. To that end, JLARC is required to analyze how existing campaign finance and ethics systems can be modernized by creating a new independent agency to increase transparency and accountability using best practices from other jurisdictions across the United States. JLARC is required to produce a report of clear recommendations and best practices for creating such an independent agency for improving the current system.

Surplus real property; prioritization of disposition for affordable housing. Requires the Department of General Services to determine whether, following an offer of surplus property to the chief administrative officer of the locality within which the surplus property is located, as well as to any economic development entity for such locality, such surplus property is suitable for the development of affordable housing, as defined by the bill. If the Department so determines, the bill provides that such property shall be offered for at least 90 days exclusively to eligible organizations, as defined by the bill, for the purpose of developing affordable housing, provided that the terms of the disposition include a recorded covenant to provide affordable housing for at least 30 years.The bill also requires the governing body of each locality to prepare an inventory list of all real property within its jurisdiction to which the locality or any dependent special district within its boundaries holds fee simple title that is suitable for the development of affordable housing. If the governing body of a locality chooses to dispose of such a property, such property shall be offered for at least 90 days exclusively to eligible organizations, as defined by the bill, for the purpose of developing affordable housing, through purchase, lease, exchange, or donation in return for a recorded covenant to provide affordable housing for at least 30 years.

Sales and use tax on services and digital personal property. Levies the retail sales and use tax on the following services: admissions; charges for recreation, fitness, or sports facilities; nonmedical personal services or counseling; dry cleaning and laundry services; companion animal care; residential home repair or maintenance, landscaping, or cleaning services when paid for directly by a resident or homeowner; vehicle and engine repair; repairs or alterations to tangible personal property; storage of tangible personal property; delivery or shipping services; travel, event, and aesthetic planning services; and digital services. Digital services are defined in the bill as the following: software application services, computer-related services, website hosting and design, data storage, and digital subscription services. The services taxed under the bill include any transaction for digital services where the purchaser or consumer of the service is a business but do not include any service otherwise exempt under law.The bill also imposes the retail sales and use tax on digital personal property, defined in the bill as a digital product delivered electronically that the purchaser owns or has the ability to continually access without having to pay an additional subscription or usage fee to the seller after paying the initial purchase price.Revenues generated by the taxes levied on services and digital personal property shall be allocated in the same manner as other sales and use taxes; however, revenues from the state portion of the sales and use tax that would be allocated to the general fund shall instead be allocated to school divisions as follows: (i) 60 percent shall be distributed to localities on the basis of school-age population and (ii) 40 percent shall be distributed to localities on the basis of the high-need student population in the locality. The bill clarifies that a high-need student population includes students who are (a) automatically certified for free school meals because of participation in social services programs, (b) participants in a program of special education, or (c) English language learners.The bill provides certain exemptions to the sales and use tax on services, including health care services that must be performed by a person licensed or certified by the Department of Health Professions, veterinary services, professional services, Internet access services, and services provided by a person who does not receive more than $2,500 per year in gross receipts for performance of such services. The bill exempts services purchased by a nonprofit organization and services purchased by a homeowners' association or by a landlord for the benefit of his tenant. The bill also repeals the service exemptions currently provided for the sale of custom programs and modification of prewritten programs.Finally, the bill exempts food purchased for human consumption and essential personal hygiene products from all state, local, and regional sales taxes on and after July 1, 2025. Under current law, food purchased for human consumption and essential personal hygiene products are subject only to the one percent local option sales tax.