The Legislature Adjourns ... Now We Have Our Work Cut Out for Us
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The final day of the legislature was an eye-opening experience. Known as “veto day,” the legislature reconvened on April 7 to vote on the Governor’s amendments to proposed legislation and to vote on any vetoes — which there were none at this point.
The media of course reported heavily on legislation related to the legalization of marijuana — and no surprise that there was no coverage on the Governor’s amendments to the “Virginia Saves” program which creates a mandatory employee savings program for those businesses who do not provide pension programs for their employees. The definition of “eligible employer” right now applies to businesses with 25+ employees. The Governor amended HB 2174 requiring that the employee count include part-time employees. IIAV, along with many other business groups — NIFB, Chamber, retail merchants, restaurants, bankers, etc. — opposed the amendment and urged legislators (especially Senators) to oppose the Governor’s changes. As expected, the House voted to approve the Governor’s amendments but after considerable contacts, the Senate rejected the amendment on an 11–29 vote.
While the good news was that the coalition in opposition to the amendment made strong arguments to senators to the extent that, more than I’ve ever seen, several key Senators refused to introduce the bill as they intended to oppose the amendments. What was distressing was the number of Senators who spoke in favor of the amendments, expressing a complete lack of understanding not only of the bill itself but the current administrative pressures related to small businesses which would be required to “simply” enroll their part-time employees — who could by statute opt in and out of the savings program at their discretion, moreover the tracking of the churning of part time employees in some businesses such as restaurants. There was a complete and obvious demonstration lacking of what is required to operate a business and the administrative costs thereof. If legislators don’t have an understanding of what it takes to run a profitable small business and the narrow margins of success, we can only expect more regulatory requirements and challenges presented by the legislature. You can be assured that there will be continued attempts to amend the Virginia Saves Program legislation in the future.
Beyond this bill, we urge all members to reach out to and visit with their legislators. Also, be aware that ALL delegates will be up for election this year — along with the Governor, Lt. Governor and Attorney General. It is particularly clear that legislators don’t understand insurance and after this demonstration far too many don’t understand what it takes to operate a successful business — small business or otherwise.
With that in mind — we prepare for the 2022 legislative session!
And don’t forget to check the education calendar for the legislative update class on the 2021 Legislature for which you’ll get 2 ethics credits. Additionally, the Insurance Data Security Act regulations have been released, and updates on that will be offered soon.
Bob Bradshaw
IIAV President & CEO
Reach me at rbradshaw@iiav.com
