SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

2014 SESSION

  • print version
Senate Committee on Commerce and Labor

Chairman: Richard L. Saslaw

Clerk: Maribeth Turner
Staff: Frank Munyan
Date of Meeting: February 24, 2014
Time and Place: Monday, 1/2 hour after adjournment, Senate Room B

H.B. 108 Health insurance; carrier contracts with pharmacy providers, definition of overpayment.

Patron: Ware

Health insurance; carrier contracts with pharmacy providers. Requires any contract between a carrier and its intermediary, pursuant to which the intermediary has the right or obligation to conduct audits of participating pharmacy providers, and any provider contract between a carrier and a participating pharmacy provider or its contracting agent, pursuant to which the carrier has the right or obligation to conduct audits of participating pharmacy providers, that is entered into, amended, extended, or renewed on or after January 1, 2015, to contain provisions that prohibit the carrier or intermediary, in the absence of fraud, from recouping amounts calculated from or arising out of specified acts, claims, or methods. Recoupment is not allowed with regard to any claim authorized and dispensed more than 24 months prior to the date of the audit unless the claim is adjusted at the direction of the State Corporation Commission, except that this time period shall be tolled while the denial of the claim is being appealed. Such contracts are also required to contain provisions prohibiting the carrier or intermediary, in the absence of fraud by the provider, from terminating or failing to renew the contractual relationship with a participating pharmacy provider for invoking its rights under these required contractual provisions.

H.B. 109 Insurance holding companies; revises requirements applicable to companies.

Patron: Ware


Insurance holding companies. Revises the requirements applicable to insurance holding companies to conform to the National Association of Insurance Commissioners' Insurance Holding Company System Regulatory Act and Insurance Holding Company System Model Regulation. The measure expands insurance regulators' examination authority to ascertain the financial condition of the insurer. The bill (i) requires the ultimate controlling person of an insurance holding company system to submit a confidential Enterprise Risk filing; (ii) requires the parent company seeking to divest its interest in an insurance company subsidiary to provide notice to the domestic regulator prior to the divestiture; (iii) requires the insurer's board of directors to make statements regarding the corporate governance and internal control responsibilities within the registration statement; (iv) subjects the cost-sharing services and management agreements among affiliated entities to minimum reporting requirements; and (v) adds confidentiality protections for information shared. The State Corporation Commission will be authorized to participate in supervisory colleges, which will be used by regulators to coordinate supervision of an insurance holding company system that has national and international operations. The measure also makes dental and optometric services plans subject to the insurance holding company provisions, and dental plan organizations subject to requirements regarding risk-based capital. The holding companies requirements in effect on June 30, 2014, will continue to apply to any insurance holding company transaction commenced prior to January 1, 2015, unless otherwise provided.

H.B. 167 Virginia Business One Stop electronic portal program; participation by State Corporation Commission.

Patron: Ramadan

Virginia Business One Stop electronic portal program; participation by State Corporation Commission. Requires the State Corporation Commission (SCC) and the Department of Small Business and Supplier Diversity (DSBSD), by December 1, 2014, to implement a hyperlink from the SCC’s eFile system to the Business Permitting Center that will facilitate the collection of a user's information to populate any forms that will be required to be completed at a future date. The measure also requires that SCC and DSBSD to meet as necessary to further such collaboration. The Secretary of Commerce and Trade is directed to oversee DSBSD’s implementation of the provisions. The Secretary of Commerce and Trade and the Secretary of Technology shall have the opportunity to participate in such meetings.

H.B. 168 State Corporation Commission; eFile electronic registration system, etc.

Patron: Ramadan

Clerk of the State Corporation Commission; secure online system; articles of dissolution; emergency. Requires the State Corporation Commission limit the submission of data and documents on behalf of a business entity through its eFile electronic registration system to any user (i) designated to make such submission on behalf of the business entity and (ii) whose identity has been established satisfactorily through a verification process by July 1, 2018. After July 1, 2014 and until this has been implemented by the Commission, no articles of dissolution of a business entity or data or documents that contain officer or director changes shall be accepted through the Commission’s eFile electronic registration system.

H.B. 375 Patent infringement; assertions made in bad faith, severability, penalties.

Patron: O'Quinn

Patent infringement; assertions made in bad faith. Patent infringement; assertions made in bad faith. Prohibits any person from making in bad faith an assertion of patent infringement. The Attorney General or an attorney for the Commonwealth is empowered to accept assurances of voluntary compliance and seek injunctive relief. The Attorney General is authorized to issue civil investigative demands. The measure does not apply to a demand letter or assertion of patent infringement that includes a claim for relief arising under 35 U.S.C. § 271(e)(2) or 42 U.S.C. § 262.

H.B. 543 Security freezes; protected consumers, penalties.

Patron: Filler-Corn

Security freezes; protected consumers; penalties. Establishes a procedure by which a protected consumer's representative may request that a consumer reporting agency place a security freeze on the protected consumer's credit report. A protected consumer is an individual resident of the Commonwealth who is (i) younger than age 16 at the time a request for the placement of a security freeze is made or (ii) an incapacitated person for whom a guardian or conservator has been appointed. If a freeze is established for a protected consumer, a consumer reporting agency is prohibited from releasing the protected consumer's credit report, any information derived from it, or any record created for the protected consumer, unless the freeze is removed. A fee of up to $10 may be charged for placing or removing a freeze, except identity theft victims and persons under age 16 for whom the agency has a credit report are not required to pay a fee. Willful violations are subject to a civil penalty of up to $1,000. The measure will become effective January 1, 2015.

H.B. 631 Insurance contracts; principle-based reserve basis, use of valuation manual.

Patron: Kilgore

Insurance contracts; principle-based reserve basis; use of valuation manual. Requires insurance companies to use (i) a principle-based reserve basis for life, annuity, and accident and health insurance contracts and (ii) a Valuation Manual adopted by the National Association of Insurance Commissioners (NAIC). The measure implements the NAIC's revised Standard Valuation Law model (SVL). The revised model authorizes a principle-based reserve (PBR) basis for life, annuity, and accident and health contracts. A PBR valuation is a reserve valuation that uses one or more methods or one or more assumptions determined by the insurer pursuant to requirements contained in the SVL and the Valuation Manual. The NAIC's Valuation Manual contains both PBR and non-PBR requirements and requirements regarding actuarial opinions and corporate governance. The Valuation Manual will become effective on January 1 of the first calendar year for which certain requirements have been met by July 1 of that year, including a condition that at least 42 states or other U.S. jurisdictions have enacted the revised SVL or substantially similar terms and provisions. The measure has a delayed effective date of January 1, 2015.

H.B. 634 Annuity contracts; interest on proceeds.

Patron: Kilgore

Annuity contracts; interest on proceeds. Clarifies that an insurance company is required to pay interest on a death benefit claim under a variable annuity contract commencing from the date of the insurer's receipt of a completed claim form.

H.B. 755 Nonresident public adjusters; licensure.

Patron: Rust

Licensed public adjusters. Requires applicants for a nonresident public adjuster license to maintain a bond in the amount of $50,000, conditioned on conducting his business in accordance with Virginia law. The measure also provides that a nonresident public adjuster license shall not be renewed unless the applicant meets the requirements for initial licensure.

H.B. 765 Health care policy, group health benefit plan, and health plan; definitions.

Patron: Ware

Health care policy, group health benefit plan, and health plan; definitions. Updates references to federal programs in the definitions of "health care policy," "group health benefit plan," and "health plan."

H.B. 774 Competitive telephone companies; regulation of local exchange companies, duties.

Patron: Hugo

Regulation of competitive telephone companies. Establishes a procedure by which certain telephone companies may elect to be regulated as competitive telephone companies. A competitive telephone company will be exempt from the Securities Act. The SCC shall continue to have jurisdiction over wholesale telephone services and issues, including the payment of switched network access rates or other intercarrier compensation, interconnection, porting, and numbering. A competitive telephone company in its incumbent territory will continue to be obligated to extend or expand its facilities to furnish retail voice service and facilities when the person, firm, or corporation does not have service available from one or more alternative providers of wireline or terrestrial wireless communications services at prevailing market rates. A competitive telephone company shall have the obligation to provide access to emergency 911 service to its end-user retail customers. The SCC shall continue to enforce the Transfers Act regarding competitive telephone companies. The SCC will continue not to have power to regulate contracts between telephone companies and the Commonwealth and its agencies. Orders issued by the SCC pursuant to any authority that it previously had, but which authority ceases to exist upon the effective date of this measure, shall have no effect on a competitive telephone company; however, orders issued pursuant to authority granted, continued or otherwise preserved under this measure shall continue in effect.

H.B. 796 Virginia Energy Plan; postpones due date for quadrennial updates.

Patron: Lopez

Virginia Energy Plan; schedule for updates. Postpones the due date for quadrennial updates to the Virginia Energy Plan from July 1 to October 1.

H.B. 822 Electric utility regulation; renewable energy portfolio standard program.

Patron: Lopez

Renewable energy portfolio standard program. Limits the ability of an electric utility participating in the renewable energy portfolio standard (RPS) program to bank renewable energy sales or renewable energy certificates (RECs) that are in excess of the yearly sales requirement for that RPS Goal. The measure provides that the utility may use such excess sales or RECs to achieve the RPS Goals only in the subsequent five calendar years after the renewable energy was generated or the certificates were created. An electric utility may continue to apply RECs that it acquired prior to January 1, 2014.

H.B. 949 Natural gas utilities; upstream supply infrastructure projects.

Patron: Hugo

Natural gas utilities; upstream supply infrastructure projects. Authorizes a natural gas utility to recover eligible costs of eligible natural gas supply infrastructure projects. A plan for recovery of such costs may provide the utility with an option to receive the gas or sell the gas at market prices. The measure also (i) provides that the transportation of natural gas by pipeline, without providing service to end users within the territory, shall not be considered operating in the territory of another certificate holder; (ii) bars the State Corporation Commission from approving the construction of a natural gas compressor station in an area without the locality's certification only if the area is zoned exclusively for residential use; and (iii) expands the definition of a strategic natural gas facility to include a natural gas transmission company that adds design day deliverability or designed send out of at least 100,000 dekaTherms per day in the aggregate.

H.B. 954 Mortgage loan originators; SCC authorized to issue transitional license.

Patron: Hugo

Transitional mortgage loan originators; licensing. Authorizes the State Corporation Commission (SCC) to issue transitional mortgage loan originator licenses. Such a license allows an individual to engage in business as a mortgage loan originator for a period of no more than 120 days, during which time the individual may fulfill pre-licensing education and written test requirements and apply for a mortgage loan originator license. The SCC may issue a transitional mortgage loan originator license to an individual who is licensed to originate mortgage loans under the laws of another state or, to the extent permitted under the federal Secure and Fair Enforcement for Mortgage Licensing Act, to an individual who was a registered mortgage loan originator within two months prior to the date that the individual applied for a transitional mortgage loan originator license. An individual applying for a transitional mortgage loan originator license is not required to comply with prelicensing education requirements or pass a written test requirement. In addition, the Commission shall not issue a transitional mortgage loan originator license unless it (i) finds that the applicant has never had a mortgage loan originator license revoked by any governmental authority, has not been convicted of, or pled guilty or nolo contendere to, certain felonies, and has become registered through, and obtained a unique identifier from, the Nationwide Mortgage Licensing System and Registry and (ii) finds that the applicant is employed by a person licensed by the SCC as a mortgage lender or mortgage broker.

H.B. 978 Utility crossings; localities, etc., whose facilities are to be crossed shall cooperate with other.

Patron: Rust

Public-Private Transportation Act of 1995 and the Public-Private Education Facilities and Infrastructure Act of 2002; utility crossings. Requires a locality or political subdivision whose facilities are to be crossed or affected by a project under the Public-Private Transportation Act of 1995 and the Public-Private Education Facilities and Infrastructure Act of 2002 to cooperate fully with other entities in planning and arranging the manner of the crossing or relocation of the facilities. The measure authorizes the State Corporation Commission to determine the manner in which the crossing or relocation is to be accomplished and any damages due arising out of the crossing or relocation, if the locality or political subdivision is not be able to agree upon a plan for the crossing or relocation.

H.B. 1036 State Corporation Commission; availability of records.

Patron: Joannou

State Corporation Commission; availability of records. Requires the State Corporation Commission to make available for public inspection records that are related to matters related to the Commission's operational responsibilities and operational functions, including revenues, expenditures, financial management and budgetary practices, personnel policies and practices, and procurement policies and practices. Disclosure of the records is not required if the records are otherwise covered by applicable legal privileges; disclosure of such records could threaten the safety or security of the Commission%92s employees, physical plant or information technology assets or data; or the records are not publicly available from other public entities. In addition, the requirement does not apply to records related to the Commission's formal or informal regulatory or legal proceedings or activities. The Commission is required to respond within five business days of receiving requests for administrative records, which may be extended by an additional seven business days if it is impracticable to provide the records requested within that time period. If the scope of the records requested or length of search necessitates, additional time is allowed. When requested records are not provided, the Commission shall notify the requester of the basis of the denial. Records held by the clerk of the Commission related to business entities shall be made public or held confidential in accordance with laws and regulations applicable specifically to such records.

H.B. 1043 Health benefit exchanges; regulation of navigators.

Patron: Byron

Health benefit exchanges; regulation of navigators. Requires navigators, on and after September 1, 2014, to be registered with the State Corporation Commission, in addition to being certified by the federal Department of Health and Human Services (HHS). The measure prohibits navigators from receiving compensation for services when prohibited by federal law. The Commission shall register a navigator if his character and general fitness warrant belief that he will act fairly, in the public interest, and in accordance with law. Navigators are required to submit an application to the Commission in a form the Commission prescribes, pay an application fee, and provide a criminal record history. The Commission is authorized to examine and investigate those involved in navigator activities and requires them to report to the Commission (i) any action taken by the HHS, (ii) any felony conviction and, (iii) any administrative action taken in another jurisdiction or by another governmental agency in the Commonwealth. The Commission may determine whether the federal standards and qualifications for navigators are sufficient to ensure that navigators can perform their required duties. If the Commission finds that they are not, it is required to make a good faith effort to work in cooperation with the U.S. Secretary of HHS to propose improvements. If the Commission determines the standards and qualifications remain insufficient, the Commission is directed to adopt the necessary regulations to ensure that navigators can perform their required duties.

H.B. 1166 Group accident and sickness insurance; blanket policies.

Patron: Ingram

Blanket group accident and sickness insurance policies. Authorizes the delivery of blanket accident and sickness insurance policies. A blanket policy is a form of limited accident and sickness insurance that is defined as an excepted benefit and that provides coverage for specified circumstances and specific classes of persons defined in a policy issued to a master policyholder. Blanket insurance need not specifically name the persons covered, though a statement of the coverage provided may be given, or required by the policy to be given, to eligible persons. An individual application need not be required from a covered person and the insurer is not required to furnish a certificate to each covered person. A blanket accident and sickness insurance policy is required to conform to one of 13 specific categories or to any other risk or class of risks that, in the discretion of the State Corporation Commission, may be subject to the issuance of such a policy. Any benefits payable under the blanket policy are required to be paid directly to the covered person.