HB 397 — Wrongful incarceration; compensation.

SESSION ENROLLED VIRGINIA ACTS OF ASSEMBLY ––-- 2022 SESSION CHAPTER E572 An Act to amend and reenact §§ 8.01-195.10, 8.01-195.11, and 58.1-322.02 of the Code of Virginia, relating to compensation for wrongful incarceration.

R O [H 397] Approved LApril L11, 2022 Be it enacted by the General Assembly of Virginia:

That §§ 8.01-195.10, 8.01-195.11, and 58.1-322.02 of the Code of Virginia are amended and E reenacted as follows:

D§ A.8.01-195.10.

Purpose;

action by the General Assembly required;

definitions.

A.

Compensation for wrongful incarceration is governed by Article IV, Section 14 of the Constitution of Virginia, which prohibits the General Assembly from granting relief in cases in which the courts or other tribunals may have jurisdiction and any individual seeking payment of state funds for wrongful incarceration shall be deemed to havehaveion and waived all other claims.

This article shalHshall not provide an entitlement to compensation for persons wrongfully incarcerated or require the Gener3lGeneral representativeAssembly for a decedent shall be entitled to seekappropriate afunds claim for compensationthe forpayment wrongfulof 7such incarceration.compensation.

RNo B.estate of or personal representative for a decedent shall be entitled to seek a claim for compensation for wrongful incarceration.

B.

"Wrongful incarceration" or "wrongfully incarcerated" means incarceration for a felony conviction for which (i) the conviction has been vacated pursuant to Chapter 19.2 (§ 19.2-327.2 et seq.) or 19.3 (§ 19.2-327.10 et seq.) of Title 19.2, or the person incarcerated has been granted an absolute pardon for the commission of a crime that he did not commit;

Any person who is convicted of a felony by a county or city circuit court of the Commonwealth and is wrongfully incarcerated for such felony may be awarded compensation in an amount equal to 90 percent of the inflation adjusted Virginia per capita personal income as reported by the Bureau of Economic Analysis of the U.S.

Department of Commerce for each year of incarceration, or portion of thereof.

Any compensation computed pursuant to subsection A and approved by the General Assembly shall be paid by the Comptroller by his warrant on the State Treasurer in favor of the person found to equalhave tobeen 20wrongfully 25incarcerated. percent of the compensation award with the remaining 80 75 percent of the principal ofum the compensation award to be used by the State Treasurer to purchase an annuity from any A+ rated company, including any A+ rated company from which the Virginia Lottery may purchase an annuity, to provide equal monthly payments to such person for a period certain of 25 10 years commencing no later than one year after the effective date of the appropriation;

The person wrongfully incarcerated shall be paid an initial lump sum equal to 20 25 percent of the compensation award with the remaining 80 75 percent of the principal of the compensation award to be used by the State Treasurer to purchase an annuity from any A+ rated company, including any A+ rated company from which the Virginia Lottery may purchase an annuity, to provide equal monthly payments to such person for a period certain of 25 10 years commencing no later than one year after the effective date of the appropriation;

The annuity shall provide that it shall not be sold, discounted, or used as securitization beneficiary provisions providing for theloans annuity'sand continuedmortgages disbursementby in the event of the death of the person awarded compensation.

AllThe paymentsannuity orshall, costshowever, ofcontain annuitiesbeneficiary underprovisions thisproviding sectionfor shallthe beannuity's madecontinued bydisbursement ofin 5the checkevent issuedof by the Statedeath Treasurer on warrant of the Comptroller.person awarded compensation.

NotwithstandingAll thepayments foregoing,or incosts theof eventannuities thatunder thethis personsection wrongfullyshall incarceratedbe ismade 60by yearscheck ofissued ageby or older or is terminally ill, the GeneralState AssemblyTreasurer mayon (i)warrant pay 100 percent of the compensationComptroller. computed pursuant to subsection A as a lump sum to the person wrongfully incarcerated or (ii) purchase an annuity for a period certain that is less than 25 10 years.

Notwithstanding the foregoing, in the event that the person wrongfully incarcerated is 60 years of of 5 age or older or is terminally ill, the General Assembly may (i) pay 100 percent of the compensation computed pursuant to subsection A as a lump sum to the person wrongfully incarcerated or (ii) purchase an annuity for a period certain that is less than 25 10 years.

Any income received during the taxable year derived from a qualified pension, profit-sharing, or stock bonus plan as described by § 401 of the Internal Revenue Code, an individual retirement account of 5 or annuity established under § 408 of the Internal Revenue Code, a deferred compensation plan as defined by § 457 of the Internal Revenue Code, or any federal government retirement program, thEthe contributions to which were deductible from the taxpayer's federal adjusted gross income, but only to the extent the contributions to such plan or program were subject to taxation under the income tax in another state.

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Any income attributable to a distribution of benefits or a refund from a prepaid tuition contract or savings trust account with the Virginia College Savings Plan, created pursuant to Chapter 7 (§ 23.1-700 et seq.) of Title 23.1.

All military pay and allowances, to the extent included in federal adjusted gross income and not otherwise subtracted, deducted, or exempted under this section, earned by military personnel whElewhile serving by order of the President of the United States with the consent of Congress in a combat zone or qualified hazardous duty area that is treated as a combat zone for federal tax purposes pursuant to § 112 of the Internal Revenue Code.

For taxable years beginning before January 1, 2015, the gain derived from the sale or exchange of real property or the sale or exchange of an easement to real property which results in the real property or the easement thereto being devoted to open-space use, as that term is defined in § 58.1-3230, for a period of time not less than 30 years.

H 15.

however, the subtraction amount shall be reduced dollar-9or-dollardollar-for-dollar by the amount by which the taxpayer's military basic pay exceeds $15,000 and shall be reduced tEto zero if such military basic pay amount is equal to or exceeds $30,000.

R 16.

17.

Unemployment benefits taxable pursuant to § 85 of the Internal Revenue Code.

The provisions of this subdivision shall only apply to an individual who was the first recipient of such items of income and who was a victim or target of Nazi persecution, or a spouse, surviving spouse, or childitemschild or stepchild of such victim.

"Victim or target of Nazi persecution" means any individual persecuted or targeted for persecution by the Nazi regime who had assets stolen from, hidden from, or otherwise lost as a result of any act or omission in any way relating to (i) the Holocaust, (ii) World War II and its prelude and direct aftermath, (iii) transactions with or actions of the Nazi regime, (iv) treatment of refugees fleeing Nazi persecution, or (v) the holding of such assets by entities or persons in the Swiss Confederation during World War IIion,II and its prelude and aftermath.

The death benefit payments from an annuity contract that are received by a beneficiary of such contract, provided that (i) the death benefit payment is made pursuant to an annuity contract with an thisinsurance subdivisioncompany shalland be(ii) allowed only for that portion of the death benefit payment that is includedpaid insolely federalby adjustedlump grosssum. income.

The subtraction under this subdivision shall be allowed only for that portion of 5the 22.death benefit payment that is included in federal adjusted gross income.

Any22. gain recognized from the sale of launch services to space flight participants, as defined in 49 U.S.C.

Any gain recognized from the sale of launch services to space flight participants, as defined in U.S.C.

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In order to be certified as a Virginia venture capital account, the operator of the investment fund shall register the investment fund with the Department prior to December 31, 2023, (i) indicating that it intends to invest at least 50 percent of the capital committed to its fund in qualified portfolio companies and (ii) providing documentation that it employs at least one of 5 investor who has at least four years of professional experience in venture capital investment or substantially equivalent experience.

"Substantially equivalent experience" includes, but is notElimitednot limited to, an undergraduate degree from an accredited college or university in economics, finance, or a similar field of study.