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2018 SESSION

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Senate Committee on Commerce and Labor

Chairman: Frank W. Wagner

Clerk: Chad Starzer
Staff: Frank Munyan
Date of Meeting: January 22, 2018
Time and Place: 1 Hour after adj. Senate Room A, Pocahontas Building
Update to Change Time to 1 Hour after Adj.

S.B. 17

Patron: Petersen

Uninsured and underinsured motorist insurance policies; bad faith. Provides that if an insurance company denies, refuses, or fails to pay its insured, or refuses a reasonable settlement demand within the policy's coverage limits for a claim for uninsured or underinsured motorist benefits within a reasonable time after being presented with a demand for such benefits and it is subsequently found that such denial, refusal, or failure was not in good faith, then the insurance company shall be liable to the insured for the full amount of the judgment and reasonable attorney fees, expenses, and interest.

S.B. 23

Patron: Spruill

Health insurance; coverage for limited drug refills. Requires health benefit plans to cover a limited refill for up to a five days' supply of a Schedule VI drug that is dispensed by a pharmacist for a covered person whose dispensed drugs are lost, destroyed, or otherwise rendered unusable as a consequence of a natural or man-made disaster that displaces the person from his residence.

S.B. 41

Patron: Favola

Use sick leave for the care of immediate family members. Requires employers with a sick leave program to allow an employee to use his sick leave for the care of an immediate family member. The measure applies only to employers that have 25 or more employees and that provide paid sick leave that allows an employee to be absent from work in the event of the employee's own incapacity, illness, or injury. The measure applies only to employees who work for at least 30 hours per week, and it caps the amount of sick leave that may be used for the care of immediate family members at five days per calendar year.

S.B. 42

Patron: Favola

Banks; loan applicant verification. Requires banks that receive a loan application form that names an existing customer as the applicant to contact the customer and verify that the customer has applied for the loan. The duty applies when the loan application form is included in loan solicitation materials sent by or on behalf of a bank to its existing customers.

S.B. 176

Patron: Stanley

Life insurance; claims of creditors. Repeals a provision that excludes, from the protections from claims of creditors that are afforded life insurance policies and annuities, the cash surrender or loan value of a policy under which the right to change the beneficiary is reserved. In 2016, the General Assembly enacted a provision that exempts protected insurance items from the claims of creditors regardless of whether the right to change a beneficiary is reserved or permitted.

S.B. 244

Patron: Cosgrove

Banks; branch offices. Authorizes a bank to operate a branch office under a different name if such name contains language clearly indicating that it is a branch office of the bank or a division of the bank. Currently, a different name may be used for a branch office if it indicates that it is a branch office and indicates the bank of which it is a branch office.

S.B. 246

Patron: Dance

Insurance agents; licensing requirements. Removes prospectively the exemption from examination requirements for individuals who have been awarded the Chartered Property and Casualty Underwriter and Chartered Life Underwriter designations. Insurance agent licenses that were granted to individuals who qualified for the designation exemptions will remain valid unless and until their licenses are otherwise terminated. The measure also (i) requires licensed resident public adjuster entities to meet the same bonding requirements as resident public adjusters, non-resident public adjusters, and non-resident public adjuster entities; and (ii) adds manager, member, or partner to those individuals or entities that may be considered a designated licensed producer for an agency.

S.B. 260

Patron: Stuart

Banks; stock ownership by directors. Provides that a bank director is deemed to be the sole owner of shares in the bank that are deposited by the director in a living trust, or inter vivos trust, as to which the director is a trustee and retains an absolute power of revocation. Currently, a director is deemed to be the sole owner of shares that are deposited in such a trust only if the director is the sole trustee of the trust.

S.B. 283

Patron: Black

Creating a process for identifying and relocating fiber optics and other communications infrastructure during road construction projects; Department of Transportation. Provides that the Department of Transportation shall convene a work group of stakeholders to examine the current statutory and regulatory processes for identifying the location of, and the owners or leaseholders of, fiber optic cable and conduit, as well as other similar communications infrastructure and utilities, that are located under or across from public property or in close proximity to or in an existing or newly acquired public easement or right-of-way, in order to determine whether the current process for relocating such infrastructure as necessary for the construction of a public roadway and associated appurtenances, whether such project is locally or state administered, is appropriately efficient, timely, and cost effective, in order to avoid unnecessary and costly delays in construction. Stakeholders shall include, but are not limited to, representatives from local government, cable and telecommunications industries, the road construction industry, underground utility locating contractors, and the State Corporation Commission. The Department shall assess whether the current permitting and utility registration and relocation procedures and requirements are adequate and reasonable, and shall submit its findings and any recommendations for improving such process to the General Assembly by November 30, 2018.

S.B. 297

Patron: Edwards

Incentives for communications companies; provision of wireless broadband services. Directs the Tobacco Region Revitalization Commission to award at least $10 million per year in grants to cover a portion of expenditures for the purchase and installation of wireless and broadband equipment to rural areas in the Southwest and Southside regions of the Commonwealth. The bill also establishes a sales tax exemption, which would be phased in over four years, for property sold or leased to a telecommunications company and used directly in the rendition of its public service.

S.B. 384

Patron: Black

Creating a process for identifying and relocating fiber optics and other communications infrastructure during road construction projects; Department of Transportation. Provides that the Department of Transportation shall convene a work group of stakeholders to examine the current statutory and regulatory processes for identifying the location of, and the owners or leaseholders of, fiber optic cable and conduit, as well as other similar communications infrastructure and utilities, that are located under or across from public property or in close proximity to or in an existing or newly acquired public easement or right-of-way, in order to determine whether the current process for relocating such infrastructure as necessary for the construction of a public roadway and associated appurtenances, whether such project is locally or state administered, is appropriately efficient, timely, and cost effective, in order to avoid unnecessary and costly delays in construction. Stakeholders shall include representatives from local government, cable and telecommunications industries, the road construction industry, underground utility locating contractors, and the State Corporation Commission. The Department shall assess whether the current permitting and utility registration and relocation procedures and requirements are adequate, reasonable, or excessive and shall submit its findings and any recommendations for improving such process to the General Assembly by November 30, 2018.

S.B. 387

Patron: Chafin

Annual reports of corporations. Eliminates the requirement that a corporation authorized to issue one or more classes of shares list the number of shares of each class on its corporate annual report.

S.B. 395

Patron: Barker

Virginia Birth-Related Neurological Injury Compensation Program; awards. Establishes criteria for and limits on reimbursements provided for nursing or attendant care provided by an adult relative or legal guardian of an admitted claimant under the Virginia Birth-Related Neurological Injury Compensation Program (Program). The measure also (i) requires an admitted claimant's parent or legal guardian to purchase a private health insurance policy covering the claimant; (ii) provides for reimbursement of all or part of the insurance premium; (iii) requires the parent or legal guardian of an admitted claimant to place loss-of-earnings benefits into a trust for the benefit of the claimant; (iv) makes such loss-of-earnings benefits subject to repayment that is triggered by receipt of Medicaid payments; and (v) repeals a provision regarding retroactive application of amendments to the Program enacted in 1990.

S.B. 418

Patron: Barker

Public safety answering points; deployment of text-to-9-1-1. Requires each public safety answering point (PSAP), by July 1, 2020, to be able to receive and process calls for emergency assistance sent via text message.

S.B. 419

Patron: Wexton

Equal pay irrespective of sex. Amends the existing law requiring equal pay for equal work irrespective of sex to (i) prohibit unequal provision of benefits and privileges on the basis of sex; (ii) prohibit employers from punishing employees for sharing salary information with their coworkers; and (iii) authorize a court to award reasonable attorney fees and costs to an employee who substantially prevails on the merits in an action for wrongful withholding of wages or benefits and privileges. The measure also deletes the exemption for employers covered by the federal Fair Labor Standards Act from the Commonwealth's prohibition on discrimination in the payment of wages on the basis of sex.

S.B. 421

Patron: Wexton


Paid medical leave; civil penalties. Requires private employers with 50 or more employees to give to each full-time employee paid medical leave. Paid medical leave would accrue at a rate of no less than one hour for every 50 hours worked in 2019. In 2020 and subsequent years, paid medical leave would accrue at a rate of no less than one hour for every 30 hours worked. Paid medical leave accrues at different rates for an employer that commences its business operations after January 1, 2019. An employee would be entitled to use accrued medical leave beginning on the ninetieth calendar day of employment. The bill would require an employer to provide paid medical leave, 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 medical leave. 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 would be authorized to bring an action to recover specified civil penalties against an offender. The Commissioner would also be able to recover attorney fees of one-third of the amount set forth in the final order or judgment. The measure would not apply to employees covered by a collective bargaining agreement that provides for paid medical leave, nor would it lessen any other obligations of the employer to employees.

S.B. 513

Patron: Suetterlein

Enhanced Public Safety Telephone Services Act. Establishes requirements regarding the implementation of next generation 9-1-1 (NG9-1-1) service. By July 1, 2023, the 9-1-1 Services Board (the Board) is required to develop and implement NG9-1-1 transition plans to migrate public service answering points and originating service providers from E-911 to NG9-1-1. The measure alters the formula and criteria for the Board's distribution of funds from the Wireless E-911 Fund. The measure also repeals provisions regarding (i) notices that providers of Voice over Internet protocol service are required to give to subscribers regarding access to E-911 service; (ii) plans for access by Voice over Internet protocol service subscribers to obtain E-911 service; and (iii) the Board's Wireless Carrier E-911 Cost Recovery Subcommittee.

S.B. 517

Patron: Mason

False and fraudulent insurance claims; civil penalties and damages. Establishes a cause of action for knowingly obtaining, attempting to obtain, or causing to be obtained, by deception, control over the property of any insurer by making a false or fraudulent insurance claim. A person who commits such an act is liable to the Commonwealth for (i) remedial damages equal to three times the amount of the property wrongfully obtained or, if no property was wrongfully obtained, twice the value of the property attempted to be obtained, whichever amount is greater, and (ii) a civil penalty of not less than $5,500 and not more than $11,000. Actions may be brought by the Superintendent of State Police or the Attorney General. Alternatively, qui tam actions may be brought by a private person in the name of the Commonwealth, in which event the Commonwealth has the right to intervene and proceed with the action. The measure provides for the allocation of proceeds of such actions among the Commonwealth and a private person who initiates such an action, with the portion allocated to the Commonwealth being directed to the Department of State Police's special fund for insurance fraud.

S.B. 536

Patron: Obenshain

Medicare, Medicaid and CHIP; duty of in-network providers to submit claims. Extends the duty of in-network providers of health care services to submit claims to an insurer for health care provided to an individual covered by Medicare, Medicaid, or CHIP within a specified time period.

S.B. 542

Patron: Obenshain

Surplus lines insurance. Establishes criteria for the licensing by the State Corporation Commission of domestic surplus line insurers. A domestic surplus lines insurer is considered a nonadmitted insurer for the purposes of the federal Nonadmitted and Reinsurance Reform Act of 2010 with respect to risks insured in the Commonwealth. The measure provides that policies issued by a domestic surplus lines insurer are subject to the same taxes and maintenance assessments levied upon surplus lines policies issued by eligible nonadmitted insurers, if the Commonwealth is the home state of the insured. Policies issued by a domestic surplus lines insurer are not subject to protections provided by the Virginia Property and Casualty Insurance Guaranty Association. The measure exempts policies issued by a domestic surplus lines insurer from all statutory requirements relating to insurance rating plans, policy forms, policy cancellation and nonrenewal, and premium charged to the insured in the same manner and to the same extent as a nonadmitted insurer domiciled in another state.

S.B. 574

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 (i) 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 (ii) conditions coverage of a prescription medication on a patient's first trying an alternative medication without success. The measure requires the granting of a step therapy protocol override if any of certain conditions are satisfied.

S.B. 581

Patron: DeSteph

Health insurance plans; preauthorization for drug benefits. Requires contracts between an insurance carrier and a participating health care provider that require the carrier's prior authorization of a drug benefit to include a provision that if a prior authorization request is denied, the provider has the right to a peer-to-peer review with a physician advisor or peer of the treating health care provider who represents the carrier. This provision applies to provider contracts entered into, amended, extended, or renewed on or after January 1, 2019.

S.B. 593

Patron: Vogel

Health insurance; 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 10. 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, 2019.

S.B. 626

Patron: Surovell

Life insurance on minors; consent of parents. Prohibits an insurer from issuing in Virginia a life insurance policy on a minor without the written consent of the minor's parents.

S.B. 654

Patron: McPike

Virginia Health Club Act; automated external defibrillator required in health clubs. Requires each health club location to (i) have a working automated external defibrillator, (ii) develop a medical emergency response plan in coordination with local emergency medical service providers, and (iii) ensure that at least one employee is at the health club location during hours the health club is open to the public who has current certification in cardiopulmonary resuscitation or has received training, within the last two years, in emergency first aid and cardiopulmonary resuscitation, including training on the use of an automated external defibrillator.

S.B. 690

Patron: Deeds

Debit card holds; disclosures. Requires a merchant that initiates a hold on a debit card transaction that is more than 25 percent of the actual transaction, or $50, whichever is greater, to disclose at the time and point of the sale that a hold will be placed on the cardholder's debit card account. If the hold is placed on an account due to a transaction occurring at an unmanned remote terminal, then the disclosure is required to be conspicuous at the place where the transaction occurs. In cases where the hold is part of a contractual agreement, the notice is required to be conspicuous on the written document. A violation constitutes a prohibited practice under the Virginia Consumer Protection Act.

S.B. 697

Patron: Edwards

Natural gas utilities; right of entry. Limits the circumstances under which the developer of a natural gas pipeline has the right to enter upon property for survey and study purposes. The measure provides that a public service company or public utility incorporated in the Commonwealth and authorized by the State Corporation Commission (SCC) to provide natural gas distribution service may enter upon property to make examinations if the SCC determines that the natural gas pipeline is for a fixed and definite public use. The measure provides that a natural gas pipeline is for a public use if it provides services or products to the public of the Commonwealth. The measure prescribes that a natural gas pipeline that distributes natural gas to persons within the Commonwealth is for a public use and that a pipeline is not for a public use if it (i) distributes natural gas to export facilities or (ii) transports natural gas within or through the Commonwealth and does not distribute natural gas to persons within the Commonwealth. The measure revamps the measure enacted in 2004 that provides to interstate natural gas companies the same limited right of entry for survey and study purposes that is currently granted to intrastate natural gas companies.

S.B. 736

Patron: Favola

Paid family leave program. Establishes a program under which certain employees of employers with 50 or more employees will be eligible for paid family leave for days they take leave from work to provide qualified caregiving, which is defined in the bill as an activity for a reason for which an employee would be entitled to leave under the federal Family and Medical Leave Act. The amount of qualified caregiving days for which an eligible employee may receive paid family leave benefits is capped at 30 days in any year. Applications for benefits will be administered by the Virginia Employment Commission (VEC). The VEC is directed to adopt regulations within 280 days to establish (i) rates of payroll taxes to be paid by employers and employees to fund the program and (ii) the wage replacement payments under the paid family leave program, which are directed to be comparable to basic wage replacement benefits under the unemployment compensation program.

S.B. 755

Patron: Sturtevant

Pension de-risking; annuities. Limits the subsequent transfers of group annuity contracts that are purchased to fund retirement benefits pursuant to a pension de-risking transfer. The measure prohibits such transfers without the prior written approval of the State Corporation Commission. Such approval shall not be granted unless it makes certain findings regarding whether the annuity benefits will continue to be protected under ERISA or by the Federal Pension Benefit Guaranty Corporation and whether the transfer or assignment is made to an insurer that has the financial strength to fulfill its obligations under the annuity contract. The measure also provides that amounts payable to a participant of or beneficiary under such an annuity contract are exempt from the claims of creditors of the participant or beneficiary.

S.B. 779

Patron: Stanley

Covenants not to compete; physicians. Declares that any covenant not to compete that restricts the right of a physician to practice medicine upon the termination of an employment contract is void. A similar prohibition applies to noncompetition provisions triggered by a physician's dissociation from, or the termination or dissolution of, a business entity. The measure provides that all other provisions of the employment contract or other agreement are enforceable, including provisions that require the payment of damages in an amount that is reasonably related to the injury suffered by reason of termination of the employment contract or the dissociation from or the termination or dissolution of a business entity.

S.B. 817

Patron: Saslaw

Life insurance on minors; limits. Prohibits an insurer from issuing in Virginia a policy of life insurance upon the life of an individual under the age of five years. The bill also caps the amount of life insurance that may be issued on the life of a minor who is at least five years of age but under the age of 15 years at $50,000. The measure does not prohibit a domestic insurer from issuing for delivery, in another state or foreign country, a life insurance policy that is governed by the laws of such state or country for any amount not prohibited by the laws of the other state or country.