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2016 SESSION

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Senate Committee on Commerce and Labor

Chairman: Frank W. Wagner

Clerk: John Garrett
Staff: Frank Munyan
Date of Meeting: February 29, 2016
Time and Place: 15 minutes after Adjournment Senate Room B

H.B. 16 Health insurance; payment for services by dentists and oral surgeons.

Patron: Ware

Insurance; payment for services by dentists and oral surgeons. Requires that reimbursements payable or paid by a dental plan for covered services be reasonable and not provide nominal reimbursement in order to claim that services are covered services under the applicable dental plan. A reimbursement is reasonable if it is the negotiated fee, rate, or reimbursement methodology that is set forth in the contract between a dental plan and a dentist or oral surgeon and is acceptable to the provider. The measure applies to contracts between a dental plan and a dentist or oral surgeon for the provision of health care to patients that is entered into, amended, extended, or renewed on or after January 1, 2017. The bill contains a delayed effective date.

A BILL to amend and reenact § 38.2-3407.17 of the Code of Virginia, relating to health insurance; payment for services by dentists and oral surgeons.

16100494D

H.B. 87 Health Insurance Reform Commission; assessments of legislation.

Patron: Byron

Health Insurance Reform Commission. Clarifies the applicable governmental agency that is tasked with determining whether a proposed mandated health insurance benefit exceeds the scope of the essential health benefits. The existing provision that gives this task to the Exchange is misplaced because the Exchange is a program, administered by Centers for Medicare and Medicaid Services, through which health insurance is offered. If applicable federal rules require an agency of the Commonwealth to identify the state-mandated benefits that are in addition to the essential health benefits but does not identify a specific agency that is responsible for making such identification, the Bureau of Insurance shall be the applicable agency.

A BILL to amend and reenact § 30-343 of the Code of Virginia, relating to the Health Insurance Reform Commission; assessments of legislation.

16104430D

H.B. 175 Foreign business entities; service of process on registered agent.

Patron: Albo

Foreign business entities; service of process. Establishes that the registered agent of a foreign stock or nonstock corporation, limited liability company, or business trust may be served with a subpoena for depositions, discovery, or documents, regardless of where the documents are located.

A BILL to amend and reenact §§ 13.1-766, 13.1-928, 13.1-1018, and 13.1-1223 of the Code of Virginia, relating to service of process on the registered agent of a foreign business entity.

16100864D

H.B. 307 Insurance companies; clarifies and updates provisions regarding notices to applicants, etc.

Patron: Byron

Insurance notices. Clarifies and updates provisions regarding notices from insurance companies to applicants and policyholders. The measure amends the requirement that insurers give insureds notice when increasing the premium on their policies due to accidents to clarify that insurers are required to inform insureds that they have 60 days to seek a review by the Bureau of Insurance of the application of a surcharge. The notice requirements regarding uninsured motorist coverage (UM/UIM) is updated to allow the practice under which insurers give applicants the opportunity to request UM/UIM limits equal to their liability limits or to request lower UM/UIM limits, as long as the lower limits are at least $25,000/$50,000/$20,000. Other changes clarify which notices are required to be given on new business policies only rather than on new and renewal business policies.

A BILL to amend and reenact §§ 38.2-1905, 38.2-2118, 38.2-2119, 38.2-2120, 38.2-2202, and 38.2-2210 of the Code of Virginia, relating to insurance notices.

16101547D

H.B. 393 Insurance agencies; designated licensed producers.

Patron: Ware

Insurance agencies; designated licensed producers. Requires that an insurance agency's designated licensed producer responsible for the agency's compliance with insurance laws and regulations be an employee of the agency. Business entities acting as an insurance producer are required within 30 calendar days to report (i) the removal of the designated licensed producer responsible for the business entity's compliance with insurance laws, rules, and regulations and (ii) the name of the new designated licensed producer. The State Corporation Commission is authorized to terminate an insurance agency's license for failing to maintain such a designated licensed producer. The measure makes the designated licensed producer requirements uniform among various lines of insurance.

A BILL to amend and reenact §§ 38.2-1820, 38.2-1825, 38.2-1826, 38.2-1838, 38.2-1841, 38.2-1845.2, 38.2-1857.2, 38.2-1865.1, and 38.2-1865.5 of the Code of Virginia, relating to insurance agencies; designated licensed producers.

16103423D

H.B. 685 Direct primary care agreements; Commonwealth's insurance laws do not apply.

Patron: Landes

Direct primary care agreements. Provides that the Commonwealth's insurance laws do not apply to direct primary care agreements. The measure further provides that (i) a direct primary care practice is not be subject to the jurisdiction of the State Corporation Commission (SCC) and is not required to obtain a certificate of authority or license to market, sell, or offer to sell a direct primary care agreement; (ii) entering into a direct primary care agreement shall not be considered to be engaging in the business of insurance; and (iii) a direct primary care agreement is not a contract of insurance and is not subject to regulation by the SCC. The bill defines a direct primary care agreement as an agreement entered into between a health care provider and an individual patient under which the provider charges a predetermined fee as consideration for providing primary care to the patient, subject to certain conditions. Health care providers participating in a direct primary care practice are not required to exclusively participate in direct primary care agreements and are not prohibited from seeking reimbursement for services provided outside of direct primary care agreements.

A BILL to amend the Code of Virginia by adding in Title 38.2 a chapter numbered 64, consisting of sections numbered 38.2-6400 through 38.2-6404, relating to direct primary care agreements.

16104748D

H.B. 775 Fantasy Contests Act; created, registration required, conditions of registration, civil penalty.

Patron: Miller

Fantasy Contests Act; registration required; conditions of registration; civil penalty. Creates the Fantasy Contests Act (the Act), which applies to fantasy contests with an entry fee offered in Virginia. The bill defines "fantasy contest" as any online fantasy or simulated game or contest in which (i) the value of all prizes and awards offered to winning participants is established and made known to the participants in advance of the contest; (ii) all winning outcomes reflect the relative knowledge and skill of the participants and are determined predominantly by accumulated statistical results of the performance of individuals, including athletes in the case of sports events; and (iii) no winning outcome is based on the score, point spread, or any performance of any single actual team or combination of teams or solely on any single performance of an individual athlete or player in any single actual event. The bill requires operators of fantasy contests to register annually with the Department of Agriculture and Consumer Services. The bill sets forth the conditions for registration and penalties for violation of the Act. The bill provides that such contests are not illegal gambling.

A BILL to amend the Code of Virginia by adding in Title 59.1 a chapter numbered 51, consisting of sections numbered 59.1-556 through 59.1-570, relating to the Fantasy Contests Act; registration required; conditions of registration; penalty.

16105159D

H.B. 820 Insurance policies; electronic delivery of information to policyholder, etc.

Patron: Byron

Insurance notices; electronic delivery. Authorizes a health carrier to deliver electronically to any of its policyholders, subscribers, or enrollees or to post to the health carrier's publicly available website, in lieu of any other method of delivery, any evidence of coverage or other forms required to be given to policyholders, subscribers, and enrollees that do not contain personally identifiable information. The evidence of coverage and associated forms are require to be readily and available to download using publicly available software at no cost. The carrier is required to notify the policyholder, subscriber, or enrollee that he may request a paper copy of the evidence of coverage and associate forms without charge. The measure also repeals a clause that would have sunset on December 31, 2016, a provision that (i) makes the notification to an insurer of any change of the electronic address for the named insured the sole responsibility of the named insured and (ii) states that giving notice of change of the named insured's electronic address to the agent of record shall not be deemed to be notice to the insurer unless it is specifically identified as a change and receipt has been accepted by the agent of record.

A BILL to amend and reenact §§ 38.2-325, 38.2-4214, and 38.2-4319 of the Code of Virginia and to repeal the second enactment of Chapter 257 of the Acts of Assembly of 2013, relating to electronic delivery of information relating to insurance policies.

16104810D

H.B. 851 Insurance policy; electronic delivery of information, repeals sunset provision.

Patron: Hugo

Insurance notices; electronic delivery. Repeals a clause that would have sunset on December 31, 2016, a provision that (i) makes the notification to an insurer of any change of the electronic address for the named insured the sole responsibility of the named insured and (ii) states that giving notice of change of the named insured's electronic address to the agent of record shall not be deemed to be notice to the insurer unless it is specifically identified as a change and receipt has been accepted by the agent of record.

A BILL to repeal the second enactment of Chapter 257 of the Acts of Assembly of 2013, relating to electronic delivery of insurance policy information.

16104374D

H.B. 1053 Investor-owned electric utilities; energy efficiency programs, report.

Patron: Kilgore

Investor-owned electric utilities; energy efficiency. Directs the State Corporation Commission (SCC) to evaluate the establishment of uniform protocols for measuring, verifying, validating, and reporting the impacts of energy efficiency measures implemented by investor-owned electric utilities and the establishment of a methodology for estimating annual kilowatt savings for such energy efficiency measures. The SCC shall submit a report of its findings and recommendations to the Governor and the General Assembly by December 1, 2016.

A BILL to direct the State Corporation Commission to evaluate the establishment of protocols for energy efficiency programs implemented by investor-owned electric utilities; report.

16105453D

H.B. 1174 Electric energy; consumption reduction goal, report.

Patron: Sullivan

Electric energy consumption reduction goal; progress reports. Directs the Department of Mines, Minerals and Energy, in consultation with the staff of the State Corporation Commission, to report annually, commencing no later than December 15, 2017, on the progress the Commonwealth is making toward meeting the goal adopted in 2007 of reducing the consumption of electric energy by retail customers by the year 2022 by an amount equal to 10 percent of the amount of electric energy consumed by retail customers in 2006. The reports are to be made to the General Assembly and the Governor's Executive Committee on Energy Efficiency or, if that Committee ceases operations, to the Governor.

A BILL to amend and reenact the third enactment of Chapter 933 of the Acts of Assembly of 2007, relating to the Commonwealth's goal of reducing the consumption of electric energy.

16103848D