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2013 SESSION

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Senate Committee on Commerce and Labor

Chairman: John C. Watkins

Clerk: Maribeth Turner, Cheryl Law
Staff: Frank Munyan
Date of Meeting: February 4, 2013
Time and Place: Monday, 1/2 Hour after Adjournment, Senate Room B

H.B. 1351 Credit unions, federal; those operating within State to comply with Virginia Small Estate Act.

Patron: Habeeb

Credit unions; Virginia Small Estate Act. Provides that federal credit unions operating in the Commonwealth, to the extent allowable under federal law, shall comply with provisions of the Virginia Small Estate Act requiring a person having possession of an asset belonging to a decedent with a value of no more than $50,000 to pay or deliver that asset to the designated successor of the decedent.

A BILL to amend and reenact § 6.2-1367 of the Code of Virginia, relating to credit unions; Virginia Small Estate Act.

13101150D

H.B. 1396 Portable electronics insurance; eliminates provision that caps incidental compensation, etc.

Patron: Marshall, D.W.

Portable electronics insurance. Eliminates a provision that caps, at $10 per customer, the incidental compensation that a vendor of portable electronics may provide to its employees or authorized representatives who sell portable electronics insurance.

A BILL to amend and reenact § 38.2-1878 of the Code of Virginia, relating to portable electronics insurance; compensation.

13100974D

H.B. 1510 Dental or optometric services plans; requirement for nonstock corporation that offer or administer.

Patron: Habeeb

Dental or optometric services plans. Requires any nonstock corporation that offers or administers a dental or optometric services plan without acting as an agent for participating dentists or optometrists to maintain a contingency reserve of at least $4 million. Currently, the contingency reserve must be at least equal to 45 days of anticipated operating expenses and incurred claims expenses generated for its subscription contracts. The measure also requires the State Corporation Commission to subject the nonstock corporation to the requirements regarding the Life, Accident and Sickness Insurance Guaranty Association.

A BILL to amend and reenact § 38.2-4504 of the Code of Virginia, relating to nonstock corporations conducting dental or optometric services plans.

13103060D

H.B. 1527 Fire insurance; clarifies that excess insurance may be written on an endorsement, etc.

Patron: Rust

Fire insurance policy forms. Clarifies that excess fire insurance may be written on an endorsement as well as on a separate policy. The measure also deletes references to primary policies and deletes a requirement that insurers indicate in the heading or title of a readable policy whether the coverage applies on a primary or excess basis.

A BILL to amend and reenact § 38.2-2107 of the Code of Virginia, relating to fire insurance policy forms.

13102410D

H.B. 1528 Commercial insurance policies; only first named insured required to be given notice of cancellation.

Patron: Rust

Insurance notices. Permits insurers to send termination notices on commercial liability policies to the first name insured listed in the policy's declarations page.

A BILL to amend and reenact § 38.2-231 of the Code of Virginia, relating to commercial insurance policies; notices to insureds.

13103878D

H.B. 1573 Financial institutions; contract provision requiring amendment or waiver to be in writing.

Patron: Comstock

Financial institutions; contract provision requiring amendment or waiver to be in writing. Provides that a court, when considering a provision in a written contract involving a financial institution to the effect that no amendment or waiver of any of its terms will be valid unless the amendment or waiver is in writing, will not give effect to any amendment or waiver unless it is in writing.

A BILL to amend the Code of Virginia by adding in Article 2 of Chapter 1 of Title 6.2 a section numbered 6.2-107, relating to contracts with financial institutions; effect of provision requiring amendment or waiver to be in writing.

13103099D

H.B. 1656 Workers' Compensation Commission; location of offices.

Patron: Kilgore

Workers' Compensation Commission; location of offices. Eliminates a requirement that the offices of the Workers' Compensation Commission be located in a building in the City of Richmond.

A BILL to amend and reenact § 65.2-204 of the Code of Virginia, relating to the Virginia Workers' Compensation Commission; location of offices.

13100830D

H.B. 1681 Child labor permits; transfers task of issuing from public school superintendents to DOLI.

Patron: Yost

Child labor permits. Transfers the task of issuing child labor permits from public school superintendents to Department of Labor and Industry through procedures prescribed by the Commissioner of Labor and Industry. Certificates may be issued both directly and electronically.

A BILL to amend and reenact §§ 40.1-92, 40.1-93, and 40.1-96 of the Code of Virginia, relating to the issuance of child labor permits.

13101308D

H.B. 1686 Credit unions; limit on authorized investments in certain property, retained earnings.

Patron: Miller

Credit unions; retained earnings. Increases the maximum amount of a credit union's funds that may be invested in its real estate, office buildings, equipment, and furnishings, without the prior written authorization of the Commissioner of Financial Institutions. The measure sets the maximum amount of such investments at five percent of the total of members' share accounts and retained earnings. Currently, the cap is five percent of only such share accounts. Finally, the measure defines "retained earnings" as undivided earnings, regular reserve, reserve for contingencies, supplemental reserves, reserves for losses, and other appropriations from undivided earnings as designated by management or the Bureau of Financial Institutions.

A BILL to amend and reenact §§ 6.2-1300 and 6.2-1376 of the Code of Virginia, relating to the limit on authorized investments by credit unions in certain property; retained earnings.

13101233D

H.B. 1748 Limited liability companies: updates VIrginia Limited Liability Company Act, technical amendments.

Patron: Cosgrove

Limited liability companies. Updates the Virginia Limited Liability Company Act to (i) provide a single standard for the execution by foreign limited liability companies of documents; (ii) provide for the perpetual existence of a Virginia limited liability company, which will be presumed unless a specified period of duration is set forth in the articles of organization; (iii) provide a requirement for the inclusion of an identification number in certain documents; and (iv) align annual registration fee assessment and domestication provisions with similar provisions applicable to other business entities. The measure also includes technical amendments.

A BILL to amend and reenact §§ 13.1-1003, 13.1-1007, 13.1-1009, 13.1-1010.1, 13.1-1014, 13.1-1014.1, 13.1-1050, 13.1-1050.2, 13.1-1050.4, 13.1-1056, 13.1-1056.1, 13.1-1056.3, 13.1-1057, 13.1-1062, 13.1-1074, and 13.1-1077 of the Code of Virginia, relating to the Virginia Limited Liability Company Act.

13101102D

H.B. 1790 Virginia Nuclear Energy Consortium Authority; established.

Patron: Garrett

Virginia Nuclear Energy Consortium. Establishes the Virginia Nuclear Energy Consortium Authority as a political subdivision of the Commonwealth for the purposes of making the Commonwealth a national and global leader in nuclear energy and serving as an interdisciplinary study, research, and information resource for the Commonwealth on nuclear energy issues. The 17-member board of directors of the Authority is directed to form a nonstock, nonprofit corporation, referred to as the Virginia Nuclear Energy Consortium. Membership in the Consortium is open to specified educational institutions, Virginia-based federal research laboratories, nuclear-related nonprofit organizations, business entities with operating facilities in Virginia that are engaged in activities directly related to the nuclear energy industry, and other persons whose membership is approved by the Consortium's board of directors. The purposes of the Consortium include carrying out the rights, powers, and duties of the Authority and conducting other activities useful in (i) making the Commonwealth a leader in nuclear energy, (ii) serving as an interdisciplinary study, research, and information resource for the Commonwealth on nuclear energy issues, and (iii) raising money on behalf of the Authority in the corporate and nonprofit community and from other nonstate sources.

A BILL to amend the Code of Virginia by adding in Title 67 a chapter numbered 14, consisting of sections numbered 67-1400 through 67-1406, relating to the Virginia Nuclear Energy Consortium.

13103527D

H.B. 1792 General and limited partnerships.

Patron: Johnson

General and limited partnerships. Updates the Virginia Uniform Partnership Act and Virginia Revised Uniform Limited Partnership Act by (i) providing an execution standard for the filing of an amendment to a certificate of limited partnership that names a new general partner when all previous general partners have withdrawn; (ii) providing a requirement for the inclusion of a limited partnership's identification number in certain documents to be filed in the office of the clerk of the Commission; (iii) aligning annual registration fee assessment provisions with similar provisions applicable to other business entities; (iv) providing that a statement of merger is to be made a part of the records of a general partnership with status as a registered limited liability partnership; and (v) providing that an amendment to change the name or principal office address of a limited partnership in its certificate of limited partnership also operates to automatically change these items in a limited partnership's application for registration as a registered limited liability partnership, if it is so registered with the Commission. The measure also includes technical amendments.

A BILL to amend and reenact §§ 50-73.11, 50-73.15, 50-73.52:5, 50-73.58, 50-73.58:1, 50-73.59, 50-73.67, 50-73.131, 50-73.132, 50-73.134, 50-73.135, and 50-73.136 of the Code of Virginia and to repeal § 50-73.68 of the Code of Virginia, relating to general and limited partnerships.

13101104D

H.B. 1803 Mortgage loan originators; conforms Virginia statutory law to federal regulations.

Patron: Marshall, D.W.

Mortgage loan originators. Conforms Virginia statutory law to federal regulations implementing the Secure and Fair Enforcement for Mortgage Licensing Act. Changes include (i) expanding the definition of a mortgage loan originator to include an individual who represents to the public that he can or will take an application for, or offer or negotiate the terms of, a residential mortgage loan; (ii) clarifying that when an individual acts as a loan originator in financing the sale of his own residence, he is exempt from licensing requirements; (iii) specifying conditions under which an attorney engaged in mortgage loan origination activities is exempt from licensing requirements; (iv) removing the definition of "federal banking agencies," and (v) defining the term "employee." This bill is a recommendation of the Virginia Housing Commission.

A BILL to amend and reenact §§ 6.2-1700 and 6.2-1701 of the Code of Virginia, relating to mortgage loan originators; licensing.

13103428D

H.B. 1817 State Corporation Commission; payments and dishonored payments.

Patron: Joannou

State Corporation Commission; payments and dishonored payments. Authorizes the State Corporation Commission to accept payment of any amount due by check, credit card, debit card, electronic funds transfer, or other means acceptable to it. The Commission is further authorized to add to any amount due a sum, not to exceed the amount charged to the Commission, for acceptance of any payment by a means that incurs a charge to the Commission. The measure directs that a penalty of the greater of $35 or the amount of any cost the Commission incurs shall be added to amount due if a payment is dishonored.

A BILL to amend and reenact § 12.1-17 of the Code of Virginia, relating to the State Corporation Commission; payments and dishonored payments.

13102619D

H.B. 2085 Consumer Counsel of Dept. of Law, Division of; replaces referenece to Office of Consumer Affairs.

Patron: Fariss

Division of Consumer Counsel of the Department of Law. Replaces references to the "Office of Consumer Affairs" with references to the "Department of Agriculture and Consumer Services" or the "Division of Consumer Counsel of the Department of Law." The changes reflect the transfer made in the 2012 Session of certain duties from the Office of Consumer Affairs in the Department of Agriculture and Consumer Services to the Division of Consumer Counsel in the Office of the Attorney General. The bill contains technical amendments.

A BILL to amend and reenact §§ 15.2-963, 57-48, 57-55.2, 57-55.3, 59.1-298, 59.1-326, and 59.1-328 of the Code of Virginia, and to repeal §§ 3.2-113, 3.2-114, and 3.2-115 of the Code of Virginia, relating to the Division of Consumer Counsel of the Department of Law.

13101268D

H.B. 2113 Virginia Business Trust Act; modifies provisions.

Patron: Purkey

Virginia Business Trust Act. Modifies provisions of the Virginia Business Trust Act in order to (i) bring to a single location the standard for a foreign business trust's signing of a document that is to be filed in the Clerk's Office of the State Corporation Commission, (ii) authorize a business trust to petition the State Corporation Commission for an order to eliminate the effects of clerical errors, (iii) require the inclusion of a business trust's identification number in certain documents to be filed in the Clerk's Office, (iv) bring annual registration fee assessment provisions into alignment with those applicable to other business entities, and (v) provide that business trust names are subject to provisions regarding noncompliance. The measure also includes technical amendments.

A BILL to amend and reenact §§ 13.1-1202, 13.1-1203, 13.1-1204, 13.1-1214, 13.1-1238, 13.1-1238.1, 13.1-1239, 13.1-1246, 13.1-1246.1, 13.1-1246.3, 13.1-1247, 13.1-1249, and 13.1-1252 of the Code of Virginia and to repeal § 13.1-1253 of the Code of Virginia, relating to the Virginia Business Trust Act.

13101103D

H.B. 2115 Telephone carriers; intrastate switched access charges.

Patron: Comstock

Telephone carriers; intrastate switched access charges. Eliminates a provision that prohibits incumbent local exchange carriers from adding additional elements, or from increasing the charge for existing elements, of intrastate switched access charges.

A BILL to amend and reenact § 56-235.5:1 of the Code of Virginia, relating to local exchange telephone service; intrastate switched access charges.

13101347D

H.B. 2118 Insurance policies; required notice.

Patron: Byron

Insurance policies; required notice. Clarifies that insurers are required to provide a notice that a policyholder may contact the Bureau of Insurance if he is unable to contact or obtain satisfaction from the insurer or agent. The measure corrects an editing error made in the 2012 Session that inadvertently limited this requirement to health maintenance organizations.

A BILL to amend and reenact § 38.2-305 of the Code of Virginia, relating to the contents of insurance policies.

13101058D

H.B. 2157 Financial institutions; checks required to show date account was opened.

Patron: Keam

Financial institutions; checks. Repeals the requirement that checks and similar instruments of a financial institution located in the Commonwealth display the month and year in which the account was opened.

A BILL to repeal § 6.2-600 of the Code of Virginia, relating to the requirement that checks show the date the account was opened.

13101731D

H.B. 2237 Voluntary regulatory self-assessments by banks; privilege.

Patron: Miller

Voluntary regulatory self-assessments by banks; privilege. Creates a privilege for information generated from a voluntary regulatory self-assessment conducted by a bank or its holding company, affiliates, and subsidiaries. The privilege applies to any document prepared in connection with a voluntary, self-initiated internal assessment, audit, or review of a bank and its practices, policies, and procedures or the practices, policies, and procedures of the bank's service provider. The privilege makes a self-assessment report inadmissible in any legal or investigative action in any civil or administrative proceeding and exempts it from discovery. The privilege shall not apply if it is waived; if it is determined that the privilege is being asserted for a fraudulent purpose or that the report was prepared to avoid disclosure of information in a proceeding that was underway at the time of its preparation, or it is found that a condition exists that demonstrates imminent and substantial harm to bank customers or consumers; or if it involves information in the possession of a bank regulator and is subject to public disclosure.

A BILL to amend the Code of Virginia by adding in Chapter 8 of Title 6.2 an article numbered 16, consisting of sections numbered 6.2-947 through 6.2-950, relating to privilege for voluntary regulatory self-assessments by banks.

13104360D

H.B. 2261 Investor-owned electric utilities; electric utility ratemaking. Emergency.

Patron: Kilgore


Electric utility ratemaking. Revises certain incentives and other provisions applicable to investor-owned electric utilities under the 2007 re-regulation legislation. The measure (i) eliminates the 50 basis point performance incentive that has been available to utilities that attain the renewable energy portfolio standard goals; (ii) replaces the provision that has authorized the State Corporation Commission (SCC) to adopt a performance incentive that may increase or decrease a utility's combined rate of return by up to 100 basis points, based on a comparison of the utility's generating plant performance, customer service, and operating efficiency with nationally recognized standards, with a provision that authorizes the SCC to increase or decrease the utility's combined rate of return consistent with its precedent for incumbent electric utilities prior to the 2007 re-regulation legislation; (iii) increases the threshold for determining whether the utility's earned combined rate of return on common equity is excessive or insufficient, for test periods commencing after December 31, 2012, from 50 basis points above or below the return determined by the SCC to 70 basis points above or below such return; (iv) eliminates the provision that requires the SCC, when it determines that rates should be revised or credits applied to customers' bills, to combine a rate adjustment clause previously implemented to recover transmission-related costs with the utility's costs, revenues, and investments until the amounts that are the subject of the rate adjustment clause are fully recovered; (v) eliminates the provision that authorizes the SCC to include in a rate adjustment clause for environmental costs the enhanced rate of return on common equity that is provided for new generation facilities if the environmental costs reduce the need for constructing new generation facilities by enabling the continued operation of existing generation facilities; (vi) requires a utility seeking approval to construct a generating facility to demonstrate that it has considered and weighed alternative options, including third-party market alternatives, in its selection process; (vii) eliminates the authorization for a utility to earn an enhanced rate of return on the costs of a new generation facility during the first portion of its service life if the facility does not utilize nuclear power or offshore wind, unless the SCC has approved a rate adjustment clause for the facility by July 1, 2013, or the utility filed a petition therefor on or before January 1, 2013; (viii) reduces the potential enhanced rate of return on the costs of a new generation facility utilizing nuclear power or offshore wind from 200 to 100 basis points; (ix) requires certain costs related to early retirement of generation plants, severe weather events, and natural disasters to be deemed to have been recovered through customer rates during the test period under review unless doing so would place the utility in an under-earning position, in which event the SCC is required to authorize deferred recovery of such costs and allow the utility to amortize and recover the deferred costs over future periods; and (x) directs that the fair combined rate of return on common equity determined by the SCC in a biennial rate review shall apply to the entire two successive 12-month test periods ending December 31 immediately preceding the year of the utility's subsequent biennial review filing for purposes of reviewing the utility's earnings on its rates for generation and distribution services.

A BILL to amend and reenact §§ 56-585.1 and 56-585.2 of the Code of Virginia, relating to the regulation of investor-owned electric utilities.

13104245D

EMERGENCY

S.B. 924 Virginia Health Benefit Exchange; created, report.

Patron: Watkins

Virginia Health Benefit Exchange. Creates the Virginia Health Benefit Exchange, which will be established and operated by a new division within the State Corporation Commission (SCC). The Exchange shall facilitate the purchase and sale of qualified health plans and qualified dental plans to qualified individuals and qualified employers. The Exchange shall make qualified plans available to qualified individuals and qualified employers beginning with effective dates on January 1, 2014, which date may be postponed by the SCC as it deems necessary to permit the completion of the establishment of the Exchange. The Exchange will be funded by assessments on health insurers offering plans in the Exchange. A health plan will not be required to cover any state mandated health benefit if federal law does not require it to be covered as part of the essential benefits package. The essential health benefits are items and services included in the benchmark health insurance plan, which is the largest plan in the largest product in the Commonwealth's small group market as supplemented in order to provide coverage for the items and services within the statutory essential health benefits categories. The Exchange shall ensure that no qualified health insurance plan that is sold or offered for sale through the Exchange provides coverage for abortions, except for an abortion performed (i) when the life of the mother is endangered by a physical disorder, physical illness, or physical injury, including a life-endangering physical condition caused by or arising from the pregnancy itself, or (ii) when the pregnancy is the result of an alleged act of rape or incest. The measure also authorizes the SCC to review and approve accident and sickness insurance premium rates applicable to health benefit plans in the individual and small group markets and health benefit plans providing health insurance coverage in the individual market through certain non-employer group plans. The power to review and approve rates is a condition to the SCC being found to be an effective regulator of such rates, which finding is a requirement for its operation of a state-run health benefit exchange.

A BILL to amend and reenact §§ 38.2-4214, 38.2-4319, and 38.2-4509, as they are currently effective and as they shall become effective, of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 38.2-316.1 and by adding in Title 38.2 a chapter numbered 64, consisting of sections numbered 38.2-6400 through 38.2-6416, relating to the establishment and operation of a health benefit exchange for the Commonwealth; assessments.

13101038D

S.B. 1138 Virginia Nuclear Energy Consortium Authority; established.

Patron: McWaters

Virginia Nuclear Energy Consortium. Establishes the Virginia Nuclear Energy Consortium Authority as a political subdivision of the Commonwealth for the purposes of making the Commonwealth a national and global leader in nuclear energy and serving as an interdisciplinary study, research, and information resource for the Commonwealth on nuclear energy issues. The 17-member board of directors of the Authority is directed to form a nonstock, nonprofit corporation, referred to as the Virginia Nuclear Energy Consortium. Membership in the Consortium is open to specified educational institutions, Virginia-based federal research laboratories, nuclear-related nonprofit organizations, business entities with operating facilities in Virginia that are engaged in activities directly related to the nuclear energy industry, and other persons whose membership is approved by the Consortium's board of directors. The purposes of the Consortium include carrying out the rights, powers, and duties of the Authority and conducting other activities useful in (i) making the Commonwealth a leader in nuclear energy, (ii) serving as an interdisciplinary study, research, and information resource for the Commonwealth on nuclear energy issues, and (iii) raising money on behalf of the Authority in the corporate and nonprofit community and from other nonstate sources.

A BILL to amend the Code of Virginia by adding in Title 67 a chapter numbered 14, consisting of sections numbered 67-1400 through 67-1406, relating to the Virginia Nuclear Energy Consortium.

13103526D

S.B. 1261 Health benefit exchange; regulation of navigators.

Patron: Puckett

Health benefit exchange; regulation of navigators. Establishes requirements for persons that serve as navigators in any health benefit exchange established for the Commonwealth. Navigators are required by the federal Affordable Care Act to perform certain functions relating to the operation of an exchange, including informing individuals and small employers about the availability of qualified health plans, facilitating enrollment of qualified individuals into health plans, and performing outreach and education efforts. This measure requires that an individual or entity obtain a license from the State Corporation Commission prior to acting as a navigator. A navigator is prohibited from engaging in activities that would require an insurance agent or producer license under this title; from providing advice concerning the benefits, terms, and features of a particular health plan or offering advice about which health plan is better or worse for a particular individual or employer; from making recommendations concerning the substantive benefits, terms, or conditions of health plans; or from enrolling an individual or employee in a qualified health plan offered through an exchange. The Commission is required to establish a certification and training program that includes initial and continuing education requirements and an examination and to adopt rules, to the extent permitted by the Affordable Care Act, that require a navigator to carry and maintain errors and omissions insurance. Navigators are required to obtain a surety bond or provide evidence of financial responsibility.

A BILL to amend the Code of Virginia by adding in Chapter 34 of Title 38.2 an article numbered 7, consisting of sections numbered 38.2-3447 through 38.2-3454, relating to accident and sickness insurance; health benefit exchange navigators.

13101711D

S.B. 1269 Renewable energy; amends existing portfolio standard program.

Patron: McEachin

Renewable energy portfolio standard program. Amends the existing renewable energy portfolio standard program to require that for calendar years 2016 through 2025 a utility shall apply (i) only renewable energy generated or purchased in Virginia, off its coast, or represented by a renewable energy certificate from eligible sources in Virginia or off its coast and (ii) renewable energy sales or renewable energy certificates from electric energy derived from any combination of sunlight, onshore wind, offshore wind, wave motion, tides, or geothermal power to meet at least 40 percent of the sales requirement for the RPS Goal in that year. The measure also eliminates provisions that give double or triple credit toward meeting the RPS Goals for energy from specified sources of energy.

A BILL to amend and reenact § 56-585.2 of the Code of Virginia, relating to the renewable energy portfolio standard program.

13100911D

S.B. 1287 Natural gas utility ratemaking; eligible safety activity costs.

Patron: Colgan

Natural gas utility ratemaking; eligible safety activity costs. Permits natural gas utilities to recover certain safety activity costs incurred on or after January 1, 2013, in future rates by accounting for them as deferred costs. Such a deferral is permitted to the extent the safety activity costs exceed the level of such costs that are reflected in base rates. These deferred costs will be included in new base rates and charges instituted pursuant to an order establishing or confirming customer rates in a rate case.

A BILL to amend the Code of Virginia by adding a section numbered 56-235.10, relating to natural gas utilities; recovery of eligible safety activity costs.

13103664D

S.B. 1357 Unemployment benefits; eligibility of graduate student benefits based on summer employment.

Patron: Norment

Eligibility of graduate students for unemployment benefits. Disqualifies a graduate student from receiving unemployment compensation benefits based on services performed as a student summer employee during a summer break period, if the individual was notified in writing at the time of his hiring that his employment is only for the summer break period.

A BILL to amend the Code of Virginia by adding a section numbered 60.2-616.1, relating to unemployment compensation benefits for graduate students employed for a fixed period.

13103945D