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2017 SESSION

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Senate Committee on Commerce and Labor

Chairman: Frank W. Wagner

Clerk: John Garrett, Alex Elwood
Staff: Frank Munyan
Date of Meeting: January 23, 2017
Time and Place: 15 minutes after Adjournment Senate Room B
Updated

S.B. 800 Direct primary care agreements; Commonwealth's insurance laws do not apply.

Patron: Stanley

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 subject to the jurisdiction of the State Corporation Commission (SCC)and is not equired 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 practice and a direct primary care patient under which the practice is authorized to charge a periodic fee as consideration for providing ongoing primary care to the patient, subject to certain conditions. A direct primary care practice is prohibited from submitting a claim to an insurer with respect to services provided to direct primary care patients covered by their direct primary care agreement, unless the services are outside of the patient's direct primary care agreement.

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 38.2-6403, relating to direct primary care agreements.

17100678D

S.B. 990 Electric energy consumption reduction goal; progress reports.

Patron: Dance

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, 2018, 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 bill requires the reports to be made to the General Assembly and the Governor's Executive Committee on Energy Efficiency (the Committee) or, if the Committee ceases operations, to the Governor.

A BILL to amend and reenact the third enactment of Chapter 888 and 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.

17101033D

S.B. 993 Lease agreements; late charge.

Patron: Stanley

Lease agreements; late charge. Caps the amount of the late charge that a lessor may impose for the failure of the lessee to make timely payment of any periodic rent due under a lease of real property in the Commonwealth at five percent of the amount of the periodic rent due under the lease. The measure requires the late charge to be specified in the lease or rental agreement. A payment is timely if it is made within seven calendar days of the due date.

A BILL to amend and reenact §§ 6.2-400 and 55-248.7 of the Code of Virginia, relating to the amount of late charges that may be imposed under a lease.

17103460D

S.B. 1014 Water public utilities; rate increases.

Patron: Ebbin

Water public utilities; rate increases. Prohibits the State Corporation Commission from authorizing a water public utility, including a small water utility, from increasing its approved rates, fees, or charges through the use of a surcharge for non-revenue-generating infrastructure replacement or a similar surcharge pursuant to which the utility utilizes an automatic rate adjustment feature to increase its rates, fees, or charges. The measure further provides that the rates, fees, and charges that the Commission has approved for a utility to charge its customers shall not be authorized to increase above the amounts specified in an order of the Commission unless the Commission specifically increases such amounts in an order entered by the Commission.

A BILL to amend and reenact § 56-265.13:4 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 56-262.1, relating to water public utilities; rate increases.

17102150D

S.B. 1074 Automobile clubs; a service agreement offered by a club does not constitute insurance.

Patron: Sturtevant

Automobile clubs; insurance. Provides that a service agreement offered by an automobile club does not constitute insurance. The measure also provides that the types of services related to motor travel or to the operation, use, or maintenance of a motor vehicle that may supplied by an automobile club are not limited to towing service, emergency road service, indemnification service, guaranteed arrest bond certificate service, discount service, financial service, theft service, map service, or touring service.

A BILL to amend and reenact §§ 38.2-100 and 38.2-514.1 of the Code of Virginia, relating to automobile clubs; insurance.

17101361D

S.B. 1110 Utility Facilities Act; associated facilities of an electrical transmission line.

Patron: Stanley

Utility Facilities Act; associated facilities of an electrical transmission line. Provides that the issuance by the State Corporation Commission of a certificate of public convenience and necessity for construction of an electrical transmission line of 138 kilovolts and any associated facilities shall be deemed to satisfy local comprehensive plan requirements and all local zoning ordinances with respect to the transmission line and associated facilities. The measure defines "associated facilities" as including any station, substation, transition station, and switchyard facilities to be constructed in association with the 138 kilovolt transmission line.

A BILL to amend and reenact § 56-265.2 of the Code of Virginia, relating to State Corporation Commission approval of utility facilities.

17102098D

S.B. 1136 Money order sellers and money transmitters; required investments.

Patron: Mason

Money transmitters; investments. Permits the aggregate dollar amount of the outstanding stored value products of a licensed money transmitter to be calculated in accordance with generally accepted accounting principles. Such licensees are required to maintain permissible investments that have a market value of not less than the aggregate dollar amount of all of their outstanding money transmission transactions, which by definition includes selling or issuing stored value.

A BILL to amend and reenact § 6.2-1918 of the Code of Virginia, relating to money order sellers and money transmitters; required investments.

17102799D

S.B. 1158 Insurance; reciprocals.

Patron: Reeves

Insurance; reciprocals. Removes the condition for obtaining a license to transact the business of insurance in the Commonwealth that a foreign reciprocal be actively writing, in the state in which it is organized, the class of insurance that the reciprocal proposes to write in Virginia. A similar condition for licensure of alien reciprocals is not affected. The measure also provides that a foreign or alien reciprocal is prohibited from transacting the business of insurance in Virginia until it obtains from the State Corporation Commission both a certificate of authority and a license to transact the business of insurance in the Commonwealth.

A BILL to amend and reenact §§ 38.2-1024, 38.2-1027, and 38.2-1208 of the Code of Virginia, relating to reciprocal insurance.

17100812D

S.B. 1175 Workers' compensation; employer's lien, third party actions.

Patron: Chafin

Workers' compensation; employer's lien; third party actions. Requires that the Workers' Compensation Commission and the injured employee approve of any arbitration, including any associated with the employer's lien. The measure also prohibits an employer from initiating a proceeding to recover its lien against any party other than an employee without prior notice to the Commission and the injured employee. In any such proceeding, the injured employee or the personal representative or dependents of the deceased employee shall be permitted to intervene as a matter of right.

A BILL to amend and reenact § 65.2-309 of the Code of Virginia, relating to workers' compensation; lien of employer; notice and approval.

17101049D

S.B. 1201 Workers' compensation; suitably equipped automobile for incapacitated employee.

Patron: Lewis

Workers' compensation; suitably equipped automobile. Authorizes the Workers' Compensation Commission to require an employer to provide funds for the purchase of a suitably equipped automobile for an incapacitated employee if it finds that it is medically necessary and that modifications to the employee's automobile are not technically feasible or will cost more than the funds available for a replacement automobile. The total of the costs of the automobile and of any bedside lifts, adjustable beds, and modification of the employee's principal home are limited to $42,000, which is the amount of the existing cap on expenses for modifications to the injured employee's automobile and home.

A BILL to amend and reenact § 65.2-603 of the Code of Virginia, relating to workers' compensation; employer's duty when employee incapable of work.

17101912D

S.B. 1213 Life and accident and sickness insurance; notice of lapse of policy, contract, or plan.

Patron: DeSteph

Insurance notices. Requires that the policy owner, contract owner, or plan owner under an individual policy, contract, or plan of life insurance, an annuity, or accident and sickness insurance be sent written notice by registered or certified mail prior to the date that the policy, contract, or plan will lapse for failure to pay premiums due.

A BILL to amend and reenact § 38.2-232 of the Code of Virginia, relating to life and accident and sickness insurance; notice of lapse of policy, contract, or plan.

17103079D

S.B. 1217 Negotiable instruments; statute of limitations.

Patron: Chafin

Negotiable instruments; statute of limitations. Provides that the provisions of the Uniform Commercial Code establishing a six-year limitations period on actions to enforce the obligation of a party to pay the instrument apply to negotiable and non-negotiable certificates of deposit.

A BILL to amend and reenact §§ 8.3A-118 and 8.3A-118.1 of the Code of Virginia, relating to negotiable instruments; statute of limitations; certificates of deposit.

17101945D

S.B. 1258 Virginia Solar Energy Development and Energy Storage Authority; increases membership.

Patron: Ebbin

Virginia Solar Energy Development and Energy Storage Authority. Continues the Virginia Solar Energy Development Authority and renames it the Virginia Solar Energy Development and Energy Storage Authority. The measure expands the purposes of the authority to include positioning the Commonwealth as a leader in research, development, commercialization, manufacturing, and deployment of energy storage technology. The powers of the Authority are expanded to include (i) promoting collaborative efforts among Virginia's public and private institutions of higher education in research, development, and commercialization efforts related to energy storage; (ii) monitoring relevant developments nationally and globally; and (iii) identifying and working with the Commonwealth's industries and nonprofit partners. The size of the Authority is expanded from 11 to 15 members.

A BILL to amend and reenact §§ 67-1500, 67-1501, 67-1502, 67-1505, and 67-1508 of the Code of Virginia, relating to conversion of the Virginia Solar Energy Development Authority to the Virginia Solar Energy Development and Energy Storage Authority.

17102513D

S.B. 1264 Virginia Telephone Privacy Protection Act; telephone solicitation calls.

Patron: Black

Virginia Telephone Privacy Protection Act. Provides that a seller may be held liable for violations of the Virginia Telephone Privacy Protection Act that are committed by a third-party telemarketer under common law principles of agency when the third-party telemarketer initiates telephone solicitation calls on behalf of or for the benefit of the seller. The measure defines "seller" as any entity that benefits from the sale of property or services marketed by a telephone solicitation call, including an entity that engages in the marketing or selling of names or data containing the identity of potential customers or sales leads. The measure also provides that a telephone solicitation call includes a telephone call made to a cellular phone registered to any natural person who is a resident of the Commonwealth if the purpose of the telephone call is the offering or advertising of any goods or services for sale, lease, license, or investment, including the offering or advertising of an extension of credit.

A BILL to amend and reenact §§ 59.1-510 and 59.1-514 of the Code of Virginia, relating to the Virginia Telephone Privacy Protection Act; telephone solicitation calls.

17101789D

S.B. 1282 Wireless communications infrastructure; procedure for approved by localities.

Patron: McDougle

Wireless communications infrastructure. Provides a uniform procedure for the way in which wireless communications infrastructure is approved by localities and approved and installed in public rights-of-way.

A BILL to amend the Code of Virginia by adding in Chapter 22 of Title 15.2 an article numbered 7.2, consisting of sections numbered 15.2-2316.3 through 15.2-2316.7, and by adding in Title 56 a chapter numbered 15.1, consisting of sections numbered 56-484.26 through 56-484.32, relating to wireless communications infrastructure.

17103885D

S.B. 1289 Natural gas utilities; qualified projects, investments in eligible infrastructure.

Patron: Chafin

Qualified projects of natural gas utilities. Exempts any natural gas utility serving fewer than 2,000 residential customers and fewer than 350 commercial and industrial customers in the year in which the utility makes an investment for qualifying projects from the provision that limits the amount of investment that a natural gas utility may make in qualifying projects to one percent of its net plant investment that was used in establishing base rates in its most recent rate case. The existing exemption to the one percent cap was enacted in 2013 and applies to any natural gas utility serving fewer than 1,000 residential customers and fewer than 250 commercial and industrial customers in such year. Legislation enacted in 2012 established a mechanism for natural gas utilities to recover the eligible infrastructure development costs of a qualifying project through future rates. A qualifying project is an economic development project for which, among other things, the utility has received a binding commitment from the developer or occupant of the proposed project regarding capacity or a financial guaranty from the developer or state or local government in the amount of at least 50 percent of the estimated investment to be made in the proposed project.

A BILL to amend and reenact § 56-607 of the Code of Virginia, relating to qualified projects of natural gas utilities; investments in eligible infrastructure.

17101108D

S.B. 1301 Health insurance; balance billing.

Patron: Vogel

Health insurance; balance billing. Authorizes a health care provider that does not participate in a health insurance carrier's provider network to bill an individual covered under a health benefit plan issued by the carrier for the balance of the provider's fees and charges remaining due after any payment by the carrier or other third party payer only if the covered person and the nonparticipating provider have entered into an express contract under which the covered person has undertaken to pay such balance. The measure establishes requirements for express contracts. If the covered person and nonparticipating provider have not entered into an express contract prior to the provision of the service, the measure provides that the covered person is obligated by an implied contract to pay the reasonable value of the health care services provided by the nonparticipating provider, less any other amounts received. The measure has a delayed effective date of January 1, 2018.

A BILL to amend the Code of Virginia by adding a section numbered 38.2-3407.13:3, relating to health insurance; balance billing by nonparticipating providers; express contracts.

17103060D

S.B. 1326 Medicare; supplement policies for individuals under age 65.

Patron: Carrico

Medicare supplement policies for individuals under age 65. Requires insurers issuing Medicare supplement policies in the Commonwealth to offer the opportunity of enrolling in a Medicare supplement policy to any individual who resides in the Commonwealth, is enrolled in Medicare Part B, and is eligible for Medicare by reason of disability not to include individuals with end-stage renal disease. The provisions of the measure are applicable to health plans and health maintenance organizations.

A BILL to amend and reenact §§ 38.2-4214 and 38.2-4319 of the Code of Virginia and 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.

17102781D

S.B. 1351 Medicare; supplement policies for individuals under age 65.

Patron: Deeds

Medicare supplement policies for individuals under age 65. Requires insurers issuing Medicare supplement policies in the Commonwealth to offer the opportunity of enrolling in a Medicare supplement policy to any individual who resides in the Commonwealth, is enrolled in Medicare Part B, and is under age 65 and eligible for Medicare by reason of disability.

A BILL to amend and reenact §§ 38.2-4214 and 38.2-4319 of the Code of Virginia and 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.

17101815D

S.B. 1408 Step therapy protocols; disclosures.

Patron: DeSteph

Step therapy protocols. Requires health benefit plans that restrict the use of any prescription drug through the use of a step therapy protocol to have in place a clear, convenient, and expeditious process for a prescribing medical provider to request an override of such restrictions for a patient. A step therapy protocol is a protocol or program that establishes the specific sequence in which prescription drugs for a specified medical condition are medically appropriate for a particular covered person and are covered by a health benefit plan or that conditions coverage of a prescription medication on a patient first trying an alternative medication without success. The measure requires the granting of a step therapy protocol override if (i) the required prescription drug is contraindicated or will likely cause an adverse reaction or physical or mental harm to the patient; (ii) the required prescription drug is expected to be ineffective on the basis of the known relevant physical or mental characteristics of the covered person and the known characteristics of the prescription drug regimen; (iii) the covered person has tried the required prescription drug while under his current or a previous health benefit plan or another prescription drug in the same pharmacologic class or with the same mechanism of action and such prescription drug was discontinued due to lack of efficacy or effectiveness, diminished effect, or an adverse event; or (iv) the required prescription drug is not in the best interest of the covered person, based on medical appropriateness.

A BILL to amend the Code of Virginia by adding a section numbered 38.2-3407.9:04, relating to accident and sickness insurance; step therapy protocols; disclosure of information.

17103080D

S.B. 1492 Water utilities; retail supply choice.

Patron: Stuart

Water utilities; retail supply choice. Establishes a procedure under which investor-owned water utilities operating in Virginia may be required to prepare and implement plans to provide retail supply choice to all their customers. The governing body of a locality may petition the State Corporation Commission (SCC) to institute a proceeding to determine whether the rates charged by the water utility to its customers impose an undue hardship on the customers. Rates shall be deemed to impose an undue hardship on customers if the volumetric rates charged to the majority of the water utility's customers have increased by over 100 percent in the five calendar years preceding the filing of the petition. If a water utility fails or refuses to file an acceptable plan for implementation of retail supply choice, the governing body of the locality may proceed against the incumbent water utility by a writ of quo warranto. The bill also establishes a private right of action for individuals harmed by competitive water suppliers' deceptive or unfair practices in providing or marketing water service. A competitive water supplier may be either a private entity licensed by the SCC or a political subdivision of the Commonwealth that is authorized to provide water utility service within the locality in which an incumbent water utility's certificated service territory is located.

A BILL to amend the Code of Virginia by adding a section numbered 56-235.11, relating to water utilities; retail supply choice.

17103650D