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2015 SESSION

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Senate Committee on Commerce and Labor

Chairman: John C. Watkins

Clerk: Maribeth Turner
Staff: Frank Munyan
Date of Meeting: February 2, 2015
Time and Place: Monday, 1/2 hour after adjournment, Senate Room B

S.B. 745 Workers' compensation; exclusion of certain truck owner-operators.

Patron: Cosgrove

Workers' compensation; exclusion of certain truck owner-operators. Excludes any owner-operator of a motor vehicle that is leased with or to a common or contract carrier in the trucking industry from the definition of an employee for purposes of the Virginia Workers' Compensation Act, if certain conditions establish that the owner-operator is an independent contractor.

A BILL to amend and reenact § 65.2-101 of the Code of Virginia, relating to the Virginia Workers' Compensation Act; exclusion for owner-operator of leased motor vehicle.

15102550D

S.B. 760 Medicare; supplement policies for certain individuals under age 65.

Patron: Edwards

Medicare supplement policies for individuals under age 65. Requires insurers issuing Medicare supplement policies in the Commonwealth to make standardized Medicare Supplement Plans A and C available to any Medicare enrollee under 65 years of age who is eligible for Medicare due to disability or end-stage renal disease. A Medicare supplement policy issued to such an individual may not exclude benefits based on a preexisting condition if the individual has a continuous period of creditable coverage of at least six months as of the date of application for coverage. The enrollment period for an individual is the six-month period following the month the individual became eligible for Medicare or during the 63-day period following termination of coverage under a group health insurance policy.

A BILL to amend the Code of Virginia by adding in Chapter 36 of Title 38.2 a section numbered 38.2-3610, relating to Medicare supplement policies for individuals under age 65.

15100529D

S.B. 764 Electric utilities; net energy metering programs.

Patron: Edwards

Electric utilities; net energy metering. Increases, from 500 kilowatts to two megawatts, the maximum generating capacity of an electrical generating facility owned or operated by an electric utility's nonresidential customer that may be eligible for participation in the utility's net energy metering program. This change to the definition of an "eligible customer-generator" also affects the definition of a "qualified energy project" as used in the Virginia Small Business Financing Act.

A BILL to amend and reenact § 56-594 of the Code of Virginia, relating to electric utilities; net energy metering programs.

15101229D

S.B. 990 Domestic violence leave; employers to provide for employees.

Patron: Lucas

Domestic violence leave for employees. Requires employers to allow an employee to take domestic violence leave, with or without pay, if the employee or the employee's family member is a victim of domestic violence, sexual assault, or stalking. Domestic violence leave may be taken to (i) seek legal or law-enforcement assistance or remedies; (ii) seek treatment by a health care provider for physical or mental injuries caused by domestic violence, sexual assault, or stalking or to attend to health care treatment for a victim who is the employee's family member; (iii) obtain, or assist a family member in obtaining, services from a domestic violence shelter, rape crisis center, or other social services program for relief from domestic violence, sexual assault, or stalking; (iv) obtain, or assist a family member in obtaining, mental health counseling related to an incident of domestic violence, sexual assault, or stalking, in which the employee or the employee's family member was a victim of domestic violence, sexual assault, or stalking; or (v) participate in safety planning, temporarily or permanently relocate, or take other actions to increase the safety of the employee or employee's family members from future domestic violence, sexual assault, or stalking. Employers are prohibited from discharging or discriminating against an employee because the employee takes domestic violence leave.

A BILL to amend the Code of Virginia by adding in Article 1 of Chapter 3 of Title 40.1 a section numbered 40.1-28.7:5, relating to the duty of employers to provide employees with domestic violence leave.

15102846D

S.B. 1046 Benefits consortium; certain localities to form.

Patron: Hanger

Benefits consortium for localities. Authorizes the governing bodies of three or more cities, counties, or school boards to form a benefits consortium for the purpose of establishing a self-funded employee welfare benefit plan. The benefits consortium will be a nonstock corporation established to operate a benefits plan. The benefits consortium will be exempt from taxation and from insurance regulations.

A BILL to amend the Code of Virginia by adding a section numbered 15.2-1517.1, relating to the formation of a not-for-profit benefits consortium by localities.

15103138D

S.B. 1182 Health benefit exchange; information on health benefit plans.

Patron: Obenshain

Health benefit exchange; information on health benefit plans. Requires health carriers that offer health benefit plans for sale to persons in the Commonwealth through an exchange to provide to the operator of the exchange's website certain information about those plans, to be posted on the exchange's website. Copies of the information provided to the website operator, together with evidence that the information was provided to the website operator, shall be submitted to the State Corporation Commission (SCC). The SCC is directed to make reasonable efforts to ensure that the information provided to the website operator is made available to persons who access the website.

A BILL to amend the Code of Virginia by adding in Article 6 of Chapter 34 of Title 38.2 a section numbered 38.2-3454.1, relating to the provision by health carriers of information regarding health plans offered on a health benefits exchange.

15102590D

S.B. 1225 Insurance policies and annuity contracts; creditors' claims.

Patron: McWaters

Insurance policies and annuity contracts; creditors' claims. Exempts any death benefits, cash surrender or loan value of any life insurance policy, and proceeds of an annuity contract, when such sums are payable to the spouse of the insured or the person effecting the policy, or to a child, parent, or other person dependent upon the insured or the person effecting the policy, from the claims of creditors without regard to whether the owner of the policy has the right to change the beneficiary. The exemption applies to debts or liabilities incurred by the insured or annuitant on or after July 1, 2015, unless such policy, contract, or deposit was taken out, made, or assigned in writing for the benefit of such creditor. The exemption shall not apply to any insurance policy or annuity contract issued during the six months preceding the person's insolvency or bankruptcy. The measure also repeals an existing provision that protects the cash surrender or loan value of a policy from creditors' claims only if the insured cannot change the beneficiary.

A BILL to amend and reenact §§ 38.2-3122, 38.2-3124, and 38.2-3125 of the Code of Virginia and to repeal § 38.2-3123 of the Code of Virginia, relating to annuity and insurance policy proceeds; claims of creditors.

15102108D

S.B. 1262 Health insurance plans and programs; preauthorization for drug benefits.

Patron: Newman

Health insurance plans and programs; preauthorization for drug benefits. Requires certain health insurance contracts under which an insurance carrier or its intermediary has the right or obligation to require preauthorization for a drug benefit to include provisions governing the preauthorization process. Required provisions address (i) use of a common preauthorization form to be developed by the State Corporation Commission, (ii) the electronic submission of preauthorization requests, (iii) waiving preauthorization requirements for chronic disease management drug benefits and for mental health drug benefits, (iv) requests for supplementation of a preauthorization or waiver request, (v) preauthorization restrictions for generic drug benefits, and (vi) posting of certain information. These provisions are also applicable to Medicaid fee-for-service and Medicaid managed care health plans and the state employee health insurance program.

A BILL to amend and reenact §§ 2.2-2818, 32.1-325, and 32.1-330.2 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 38.2-3407.15:2, relating to health benefits plans and programs; carrier business practices; contract preauthorization provisions.

15101826D

S.B. 1331 Natural Gas Conservation and Ratemaking Efficiency Act; cost-effective programs.

Patron: Petersen

Natural Gas Conservation and Ratemaking Efficiency Act; cost-effective programs. Requires the State Corporation Commission, when determining whether a natural gas conservation or energy efficiency program is cost-effective, to base its determination upon an evaluation of a portfolio of programs as a whole and not upon an evaluation of a program or measure on an individual basis.

A BILL to amend and reenact § 56-600 of the Code of Virginia, relating to the Natural Gas Conservation and Ratemaking Efficiency Act; cost-effective programs.

15101895D

S.B. 1349 Electric utility regulation; suspension of reviews of earnings.

Patron: Wagner

Electric utility regulation; suspension of reviews of earnings. Bars the State Corporation Commission (SCC) from conducting a biennial review of the rates, terms, and conditions for any service of Dominion Virginia Power for the eight test periods beginning January 1, 2013, and ending December 31, 2020. The utility is directed not to make biennial review filings in 2016 through 2022. The SCC is directed to dismiss any biennial review initiated in 2015 without making findings or determinations and is barred from adjusting the utility's rates until the conclusion of the 2023 biennial review, with certain exceptions. The SCC is directed to conduct biennial proceedings from 2017 through 2021 to determine what constitutes the utility's fair rate of return on common equity for use in connection with rate adjustment clauses. The measure also requires each electric utility to file updated integrated resource plans annually starting in 2015; currently, such updates are required to be filed biennially.

A BILL to amend and reenact § 56-599 of the Code of Virginia, relating to electric utility regulation; suspension of regulatory reviews of utility earnings; integrated resource plan schedule.

15103173D

S.B. 1363 Virginia Health Benefit Exchange; created.

Patron: Alexander

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 by January 1, 2016, unless the SCC postpones this date. The bill 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 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 SCC may contract with other eligible entities and enter into memoranda of understanding with other agencies of the Commonwealth to carry out any of the functions of the Exchange, including agreements with other states or federal agencies to perform joint administrative functions. Such contracts are not subject to the Virginia Public Procurement Act (§ 2.2-4300 et seq.). The measure repeals a provision enacted in 2013 that prohibits an agent, employee, officer, or agency of the Commonwealth from taking any action to establish a health benefit exchange. The measure will become effective 60 days after the date the U.S. Supreme Court finds that federal premium assistance tax credits or other cost-sharing mechanisms provided pursuant to the Act to subsidize the purchase of health insurance through health benefit exchanges are available only if the health insurance is purchased through a state health benefit exchange, and are not available if the health insurance is purchased through a federal health benefit exchange.

A BILL to amend and reenact §§ 38.2-4214, 38.2-4319, and 38.2-4509 of the Code of Virginia; to amend the Code of Virginia by adding in Title 38.2 a chapter numbered 64, consisting of sections numbered 38.2-6400 through 38.2-6415; and to repeal the second enactments of Chapters 670 and 679 of the Acts of Assembly of 2013, relating to the establishment and operation of a health benefit exchange for the Commonwealth; assessments.

15103576D

S.B. 1372 Workforce development; coordination of statewide delivery of workforce development and training.

Patron: Ruff

Workforce development; coordination of statewide delivery of workforce development and training programs and activities. Makes several changes to coordinate the delivery of workforce development and training programs and activities at the state, regional, and local levels. Changes include (i) creating the Workforce Development Consortium to administer the coordinated implementation of programs and activities under the federal Workforce Innovation and Opportunity Act (WIOA) of 2014, (ii) establishing a full-time director position to be supervised by the Governor's Chief Workforce Development Advisor and dedicated to supporting the operations of the Virginia Board of Workforce Development (Board) and requiring quarterly meetings of the Board, (iii) requiring a regional convener of workforce development partners, (iv) establishing minimum levels of fiscal support for workforce credential attainment, and (v) utilizing WIOA reserve funds for incentive programs to increase workforce credential attainment. In addition, the bill increases the size of the Board from 26 to 29 members by reshaping the executive branch membership, reducing the number of legislative members from four to two, and increasing the number of citizen members from 14 to 15. The bill also makes several technical amendments required with the transition from the federal Workforce Investment Act of 1998 to the federal Workforce Innovation and Opportunity Act of 2014.

A BILL to amend and reenact §§ 2.2-435.7, 2.2-435.8, 2.2-2238.1, 2.2-2470, 2.2-2471, 2.2-2472, and 60.2-113 of the Code of Virginia and to amend the Code of Virginia by adding in Chapter 4.2 of Title 2.2 a section numbered 2.2-435.9, by adding in Title 2.2 a chapter numbered 4.3, consisting of sections numbered 2.2-435.10, 2.2-435.11, and 2.2-435.12, and by adding sections numbered 2.2-2471.1, 2.2-2472.1, and 2.2-2472.2, relating to workforce development; coordination of statewide delivery of workforce development and training programs and activities.

15103700D

S.B. 1394 Prescription drugs; specialty tier coverage.

Patron: Dance

Prescription drugs; specialty tier coverage. Imposes dollar limits on the practice of prescription drug cost-sharing known as specialty tiers. Enrollees' coinsurance or copayment fees for specialty tier drugs will be limited to $100 per month for up to a 30-day supply of any single specialty tier drug, which limits shall apply regardless of whether a deductible has been satisfied. Patients will also be able to request an exception to obtain a specialty drug that would not otherwise be available on a health benefit plan formulary. The measure prohibits a health benefit plan that provides coverage for prescription drugs from placing all drugs in a given class of drugs on the highest cost tier.

A BILL to amend and reenact §§ 38.2-4319 and 38.2-4509 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 38.2-3407.14:1, relating to accident and sickness insurance; prescription drugs; specialty tier coverage.

15103658D

S.B. 1395 Electric utilities; net energy metering.

Patron: Dance

Electric utilities; net energy metering. Increases, from 500 kilowatts to two megawatts, the maximum generating capacity of an electrical generating facility owned or operated by an electric utility's nonresidential customer that may be eligible for participation in the utility's net energy metering program. This change to the definition of an "eligible customer-generator" also affects the definition of a "qualified energy project" as used in the Virginia Small Business Financing Act.

A BILL to amend and reenact § 56-594 of the Code of Virginia, relating to electric utilities; net energy metering programs.

15103673D

S.B. 1405 Health services plans; effects of actions of other states.

Patrons: Favola, Saslaw

Health services plans; effects of actions of other states. Requires the State Corporation Commission (SCC) to conduct a proceeding or examination to review and evaluate the effect of a law or other regulatory action of another state that requires a health services plan operating in the Commonwealth to distribute or reduce its surplus or to provide a program or benefits for the residents of the other state. Currently the SCC may, but is not required to, conduct such a proceeding or examination only when another state enacts a law providing a program or benefits for the residents of the other state. The measure authorizes the SCC, if it finds that the other state's action is harmful to the interests of residents of the Commonwealth, to (i) prohibit the health services plan from distributing or reducing its surplus for the benefit of residents of another state or the District of Columbia or (ii) take any other action the SCC finds necessary to protect the interests of the residents of the Commonwealth. The measure also states that a health services plan shall not distribute or reduce its surplus pursuant to a law of or regulatory action taken in another jurisdiction except with the approval of the SCC.

A BILL to amend and reenact § 38.2-4229.2 of the Code of Virginia, relating to health services plans; effects of actions by other states.

15103866D

S.B. 1406 Workers' compensation; presumption of compensability for certain diseases.

Patron: Lewis

Workers' compensation; presumption of compensability for certain diseases. Adds colorectal cancer to the list of cancers that are presumed to be an occupational disease compensable under the Virginia Workers' Compensation Act if contracted by certain officers who have had contact with a toxic substance in the line of duty.

A BILL to amend and reenact § 65.2-402 of the Code of Virginia, relating to workers' compensation; presumption of compensability for certain diseases.

15104129D

S.B. 1407 Paid sick leave for employees; civil penalties.

Patron: Lewis

Paid sick leave. Requires private employers to give to each full-time employee paid sick days, to be accrued at a rate of no less than one hour for every 30 hours worked. An employee would be entitled to use accrued sick days beginning on the ninetieth calendar day of employment. An employer may limit an employee's use of paid sick days to 24 hours or three days in each calendar year. The bill would require an employer to provide paid sick days, upon the request of the employee, for diagnosis, care, or treatment of health conditions of the employee or the employee's family member. The bill would prohibit an employer from discriminating or retaliating against an employee who requests paid sick days. The bill would require employers to satisfy specified posting and notice and recordkeeping requirements and would require the Commissioner of Labor and Industry (the Commissioner) to administer and enforce these requirements and to investigate alleged violations of these requirements. The bill would authorize the Commissioner to impose specified civil penalties for violations. The Commissioner or Attorney General would be authorized to bring an action to recover specified civil penalties against an offender, as well as attorney fees and costs. The measure would not apply to employees covered by a collective bargaining agreement that provides for paid sick days, nor would it lessen any other obligations of the employer to employees.

A BILL to amend the Code of Virginia by adding in Chapter 3 of Title 40.1 an article numbered 2.1, consisting of sections numbered 40.1-33.1 through 40.1-33.12, relating to the provision of paid sick leave to employees; civil penalties.

15104128D

S.B. 1437 Underground electrical line; pilot program.

Patron: Black

Underground electrical line; pilot program. Establishes a pilot program for the placement of a new electrical line of 230 kilovolts or more to be placed underground. The bill establishes criteria for participation in the project. The costs of the project shall be recoverable through a rate adjustment clause and entirely assigned to the utility's Virginia jurisdictional customers.

A BILL to establish a pilot program to place an electrical line underground.

15103784D

S.B. 1457 Health insurance; mandated coverage for autism spectrum disorder.

Patron: Vogel

Health insurance; mandated coverage for autism spectrum disorder. Requires health insurers, health care subscription plans, and health maintenance organizations to provide coverage for the diagnosis and treatment of autism spectrum disorder in individuals of any age. Currently, such coverage is required to be provided for individuals from age two through age six. The provision applies with respect to insurance policies, subscription contracts, and health care plans delivered, issued for delivery, reissued, or extended on or after January 1, 2016.

A BILL to amend and reenact § 38.2-3418.17 of the Code of Virginia, relating to health insurance; coverage for autism spectrum disorder.

15103968D