The 2026 Virginia General Assembly has reached an important deadline, Crossover. From this point forward, each chamber will only be able to consider legislation which originated from the other body. Effectively, we are at the halfway point. Bills that are identical will sail through with procedural votes. Legislation similar in nature will likely be conformed to the version each chamber prefers. Of this category, a number will be negotiated as they make their way through the legislative process, but some will be placed in conference committees for final tweaking. Committee hearings and testimony will be largely limited to new policy ideas that committees have not considered this Session. Prior to Session starting, we posted an article looking at broad policy topics that were anticipated to spark tremendous discussion. This article is an update on some legislation impacting each of major policy areas.
Appropriations
Each Chamber released its budget conference reports on Sunday, February 22. A deep dive into the similarities and differences will be the subject of a future article.
Data Centers
Below are only three of the more than 50 policies decisions introduced this Session that directly impact data centers. A full look at this expansive policy area will come in a future article.
HB897 (Sullivan): This legislation requires data center operators to meet certain requirements to maintain tax exemptions. These requirements include (1) not using co-located generating facilities that emit carbon, other than backup generators, (2) contracting for renewable energy certificates to offset usage, (3) utilizing only non-carbon dioxide-emitting backup power sources, such as energy storage resources and, (4) demonstrate investment in environmental management and energy efficiency systems. Status: Passed the House 61-34 and is awaiting action by the Senate Committee on Finance and Appropriations.
HB284/SB371 (Feggans/McPike): Directs electric utilities to petition the State Corporation Commission to implement voluntary demand flexibility programs for high energy demand customers. These programs will reduce the load on the electric grid during peak times. Status: HB284 passed the House 97-0. SB371 passed the Senate 26-13.
HB153/SB94 (Thomas/Roem): Prior to approval of an application for a “high energy use facility” a locality must require the applicant to provide the effect of the facility on (1) ground and surface water, (2) agricultural resources, (3) parks, (4) registered historic sites, (5) forestland, and (6) sound on nearby schools and residential properties. This legislation passed the General Assembly in the 2025 Session, but was vetoed by Governor Youngkin. Status: HB153 passed the House 90-7. SB94 passed the Senate 21-18-1.
Energy
Energy policy is always among the most discussed policy areas each Session and this year was no different. Below is a small sample of the bills impacting energy specifically, renewable energy policies.
HB711/SB347 (Herring/VanValkenburg): This legislation establishes model ordinances for localities to adopt for solar facilities. Similar legislation was introduced in the 2025 Session, but only passed the House. Status: HB711 passed the House 63-33. SB347 passed the Senate 21-17. It has been conformed to the House version and passed the House 63-35.
HB895/SB448 (Sullivan/Bagby): Similar legislation passed the 2025 Session, before being vetoed by the Governor. These bills set ordinance standards and deployment goals for energy storage. Status: HB895 passed the House 65-32. SB448 passed the Senate 22-17.
HB590/SB382 (Hernandez/Surovell): Creates the Smart Solar Permitting Platform. This platform would streamline rooftop solar permitting through a state-run website. Status: HB590 passed the House 61-34. SB382 passed the Senate 22-17.
HB395/SB250 (Krizek/Surovell): Governor Spanberger has voiced her support for these bills. They will allow balcony solar to operate in the Commonwealth. These are small plug-in solar panels designed to offset the energy use of a large home appliance. The legislation will exempt them from interconnection requirements and prevent landlords from prohibiting their installation. Status: HB395 Passed the House 98-0. SB250 passed the Senate 30-7-1.
Technology
As new technologies continue to emerge, legislatures continue to adjust laws with the hopes of encouraging innovation and protecting citizens.
HB635/Sb796 (Maldonado/Durant): HB 635 creates the Artificial Intelligence Chatbots Act, which prohibits an operator from making a companion chatbot that would encourage self-harm, offer mental health therapy, engage minors in sexually explicit interactions, or encourage minors to participate in illegal activities. SB796 creates the Artificial Intelligence Chatbots and Minors Act, which seeks to accomplish similar legislative goals through a different process. Status: HB635 was continued to the 2027 Session. SB796 passed the Senate 39-1.
HB757/SB237 (Runion/Head): Requires an app store provider to verify the age of an account holder, obtain verifiable parental consent for a minor account holder, and share age and consent information with the developer of an app. These bills allow the Attorney General and any minor or parent of a minor who suffers harm by reason of a violation of this bill to initiate legal action. Status: Both bills have been continued to the 2027 Session with a letter to the Joint Commission on Science and Technology to study in the interim.
HB293/SB782(Helmer/Salim): Creates the Limited Liability Decentralized Autonomous Organization (LLD) Act, which establishes requirements for an LLD, defined as a distinct legal entity that operates through decentralized governance using blockchain technology and smart contracts that execute decentralized decision-making mechanisms. Similar legislation was passed in the 2025 Session, but was vetoed by Governor Younkgin. Status: HB293 passed the House 59-37. SB782 was continued to the 2027 Session.
HB665/SB489 (Maldonado/Salim): Establishes requirements for the operation of virtual currency, including a requirement that a virtual currency kiosk operator obtain licensure with the State Corporation Commission. Additionally, these bills set limits on fees and require consumer protections, such as ID verification and transaction holds. Status: HB665 passed the House 84-13. SB489 passed the Senate 40-0.
SB557 (Reeves): Establishes the Commonwealth Strategic Cryptocurrency Reserve Fund in the Department of the Treasury for the purpose of investing in bitcoin or other cryptocurrency. Status: Passed by Indefinitely by the General Laws Committee 13-2.
Healthcare
Many decisions in healthcare will come in how the General Assembly tackles budgetary challenges in Medicaid and Medicare, but there are still numerous bills impacting this complex policy arena.
HB483/SB271 (Delaney/Deeds): Similar bills have been before the General Assembly in recent years. The 2025 Session legislation was vetoed by Governor Younkgin. The bill establishes a Prescription Drug Affordability Board to review and take action to limit prescription cost increases. Status: HB483 passed the House 61-33. SB271 Passed the Senate 31-8.
HB886/SB359 (Hope/Boysko): Allows an adult diagnosed with a terminal disease to request and an attending health care provider to prescribe a self-administered controlled substance for the purpose of ending the patient’s life and establishes regulatory safeguards. Status: HB886 was continued to the 2027 Session. SB359 failed to report from the Senate Committee on Education and Health on a 7-8 vote.
HB1147/SB22 (Hayes/Locke): Directs the Board of Medicine and Board of Nursing to require certain licensees to complete continuing learning activities on implicit and explicit bias reduction in health care as part of their continuing education and continuing competency requirements for licensure. Status: HB1147 passed the House 63-35. SB22 passed the Senate 30-8.
Housing
This Session has seen a tremendous focus on legislation aimed at housing affordability, a known dire need and one that the Spanberger Administration is making a prime focus.
HB816/SB454 (Helmer/VanValkenburg): These bills make multifamily and mixed-use residential development a by-right use in not less than 75 percent of the aggregate land area in all zoning district classifications that permit commercial or business uses as by-right uses. Status: HB816 passed the House 64-35. SB454 has passed the Senate 21-19.
HB655/SB346 (Maldonado/VanValkenburg): With these bills, manufactured and modular homes will be permitted in all locations zoned residential, just as site-built homes. Status: HB655 passed the House 99-0. SB346 has passed the Senate 38-2 and the House 92-6.
HB278/HB1177/SB355 (Clark/N. Cole/Boysko): These bills allow any locality by ordinance to adopt anti-rent gouging provisions to limit rent increases within a certain threshold. Status: HB278 and SB355 were continued to the 2027 Session with a letter to the Virginia Housing Commission to study in the interim. HB1177 was stricken from the docket.
Gaming
There are four major policy decisions for the General Assembly to make in gaming this Session.
HB271/SB195/SB558/SB609(Krizek/Aird/Reeves/Lucas); Forming a Gaming Commission: With growth in the diversity of gaming in recent years, there have been lengthy discussions and studies to examine the creation of a new Gaming Commission to oversee all aspects of gaming in the Commonwealth. SB609 establishes the Virginia Lottery and Gaming Authority to oversee and regulate all forms of legal gambling in the Commonwealth. Status: HB271 passed the House 90-7. SB558 was incorporated into SB195 which was later incorporated into SB609. This bill passed the Senate 20-19.
SB756 (Surovell): Adds Fairfax County to the list of localities eligible to host a casino in the Commonwealth. Status: Passed the Senate 23-14.
HB1272/SB661 (Hayes/Rouse): Both bills would allow skills games to operate legally in Virginia. Each bill takes on this regulatory framework very differently. This will be legislation to watch as the negotiations will continue in conference regarding the number of machines that may be licensed, the number of machines permitted in a location, the revenue structure, and more. Status: HB1272 passed the House 59-36-1. SB661 passed the Senate 24-15.
HB161/SB118 (Simon/Locke): Authorizes internet gaming with live dealers in the Commonwealth to be regulated by the Virginia Lottery Board. Status: HB161 passed the House 67-30. SB118 passed the Senate 19-17.
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