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2014 SESSION

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Senate Committee on Commerce and Labor

Chairman: John C. Watkins

Clerk: Maribeth Turner
Staff: Frank Munyan
Date of Meeting: January 13, 2014
Time and Place: 1/2 hour after adjournment, Senate Room B

S.B. 18 Unemployment compensation; voluntarily leaving employment to accompany military spouse.

Patron: Locke

Unemployment compensation; quit to follow military spouse. Provides that good cause for leaving employment exists if an employee voluntarily leaves a job to accompany the employee's spouse, who is on active duty in the military or naval services of the United States, to a new military-related assignment established pursuant to a permanent change of duty order from which the employee's place of employment is not reasonably accessible. The measure applies only if the state to which the spouse is transferred has a similar provision, unless the transfer involves members of the Virginia National Guard relocated within the Commonwealth. Benefits paid to qualifying claimants shall be charged against the pool rather than against the claimant's employer. The measure also repeals Chapter 878 of the 2009 Acts of Assembly, which is similar to this measure but did not take effect because the contingency in its third enactment was not satisfied.

S.B. 70 Insurer insolvencies; refunds of surplus funds.

Patron: Alexander

Insurer insolvencies; refunds of surplus funds. Designates the Department of Taxation as the agency to handle refunds of surplus funds from members of the Virginia Life, Accident and Sickness Insurance Guaranty Association with respect to an insurer's insolvency. Currently, the State Corporation Commission has such duties.

S.B. 74 Real estate loans; flood insurance.

Patron: Puckett

Real estate loans; flood insurance. Prohibits a lender from requiring a borrower to provide flood insurance coverage against risks to improvements on real property securing its loan in an amount that exceeds the replacement value of the improvements.

S.B. 86 Annuity contracts; interest on proceeds.

Patron: Watkins

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.

S.B. 88 Risk management by insurance companies; Own Risk and Solvency Assessments.

Patron: Watkins

Insurers; Own Risk and Solvency Assessments. Requires insurance companies to maintain a risk management framework to assist with identifying, assessing, monitoring, managing, and reporting on material and relevant risks. As part of this requirement, each nonexempt insurer, or the insurance group to which it is a member, is required regularly to conduct an Own Risk and Solvency Assessment (ORSA). An ORSA is a confidential internal assessment, conducted by an insurer, of the material and relevant risks associated with the insurer's current business plan and the sufficiency of capital resources to support those risks. The measure is based on the ORSA Model Act developed by the National Association of Insurance Commissioners. The ORSA requirements will also apply to mutual insurance holding companies, subsidiaries of insurance companies, producer-controlled property and casualty insurers, and health maintenance organizations. The measure has a delayed effective date of January 1, 2015.

S.B. 110 Unemployment compensation; short-time compensation program, report.

Patrons: Stanley, Barker

Unemployment compensation; short-time compensation program. Establishes a short-time compensation program that provides employers with the option of reducing the hours worked by employees, while permitting the employees whose hours are reduced to receive partial compensation for lost wages. Program participation requires Virginia Employment Commission approval of a plan, which must provide that the reduction in hours of work is in lieu of a layoff of an equivalent percentage of employees and that employees' health and retirement benefits cannot be reduced or eliminated under the plan. The measure requires the Commission to submit reports on the program's implementation and accomplishments, with recommendations to improve its effectiveness. The measure becomes effective January 1, 2015.

S.B. 119 State Corporation Commission; availability of records.

Patron: Watkins

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’s 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. 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.

S.B. 120 Benefits consortium; exemption and exclusions.

Patron: Watkins


Benefits consortium; exemption and exclusions. Exempts a benefits consortium and its sponsoring organization from regulation as an insurer and from the license tax levied on insurance companies. A benefits consortium is a trust that, among other conditions, operates as a nonprofit voluntary employee beneficiary association within the meaning of § 501(c)(9) of the Internal Revenue Code of 1986 and is subject to federal law and regulations applicable to multiple employer welfare arrangements.

S.B. 150 Patent infringement; assertions made in bad faith.

Patron: Stuart

Patent infringement; assertions made in bad faith. Prohibits any person from making in bad faith an assertion, allegation, or claim that a resident of the Commonwealth is infringing a patent. The measure creates a cause of action for damages and an injunction against a person threatening to bring legal action for alleged patent infringement. A court that finds that a target of an assertion of patent infringement has established a reasonable likelihood that the person has made the assertion in bad faith shall require the person to post a bond in an amount equal to the target's costs to litigate the claim and amounts reasonably likely to be recovered as damages. The Attorney General or any attorney for the Commonwealth is empowered to issue civil investigative demands, accept assurances of voluntary compliance, and seek injunctions. The target of a bad faith assertion or any other person aggrieved by a violation may bring an action to recover actual damages, fees, and costs and obtain equitable relief. If the violation was willful, damages may be increased to the greater of three times the actual damages sustained or $50,000.

S.B. 222 Solar panels; community association's authority to prohibit.

Patron: Petersen

Solar panels in community associations. Clarifies a community association's authority to prohibit or restrict the installation of solar power devices.

S.B. 243 Virginia Tourism Authority; Blue Ridge Highlands region.

Patron: Edwards

Virginia Tourism Authority; Blue Ridge Highlands region. Requires the Virginia Tourism Authority to designate the Blue Ridge Highlands region to enhance tourism development efforts.

S.B. 266 Unemployment benefits; financial literacy course, volunteer service.

Patron: Stanley

Unemployment benefits; financial literacy course; volunteer service. Allows recipients of unemployment benefits to extend their benefits through completion of a financial literacy course and volunteer service at a nonprofit organization.

S.B. 335 Money order sellers and money transmitters; criminal background checks, regulations.

Patron: Puckett

Money order sellers and money transmitters. Requires criminal background checks on members, senior officers, directors, and principals of applicants for licensure as a money order seller or money transmitter. The measure (i) allows the Bureau of Financial Institutions to file a claim to recover any required annual fees or actual examination expenses incurred that are not paid by a licensed money order seller and money transmitter and (ii) extends the bond coverage requirements to money transmissions or money orders purchased by Virginia residents from any authorized delegate of a licensee. The measure also conforms requirements applicable to licensure by the State Corporation Commission of money order sellers and money transmitters to provisions used for regulation of other nondepository financial institutions, including provisions requiring a licensee to notify the Commissioner of Financial Institutions when it relocates its principal place of business or changes its legal name or fictitious name and prohibiting a licensee from using any name other than a name on its license.

S.B. 339 Secondhand fixtures and scrap metal; payment for materials to be in form of check.

Patron: Lucas

Secondhand fixtures and scrap metal; payment. Requires persons acquiring secondhand building fixtures, scrap, metal articles, and proprietary articles to make payments for the materials in the form of a check. Currently, purchasers of certain secondhand metal articles are required to make payments by check when the amount paid equals or exceeds $1,000.

S.B. 359 Banks; director ownership of shares.

Patron: McWaters

Banks; director ownership of shares. Provides that a bank director shall be deemed to be the sole owner of, and have in his personal possession or control, shares of stock that are (i) held through a brokerage account or similar arrangement, provided that the director retains sole beneficial ownership and sole legal control over the shares; (ii) held jointly or as a tenant in common, but only to the extent of the book value of the shares divided by the number of joint or tenant in common holders; (iii) deposited by the director in a living trust, or inter vivos trust, as to which the director is the sole trustee and retains an absolute power of revocation; or (iv) held through a profit-sharing plan, individual retirement account, retirement plan, or similar arrangement, provided that the director retains sole beneficial ownership and sole legal control over the shares. Such shares of stock in the bank of which the individual is a director may be used to determine if the director meets the requirement that he own and have in his personal possession or control shares of such stock with a book value of not less than $5,000. The measure also corrects a reference to the par value, rather than the book value, of such stock.

S.B. 360 Health care policy, group health benefit plan, and health plan; definitions.

Patron: McWaters

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."

S.B. 401 Insurable interest requirement; annuity contracts.

Patron: Reeves

Insurable interest requirement; annuity contracts. Prohibits a person from purchasing an annuity contract under which benefits are payable to another individual unless those benefits are payable to the annuitant, the annuitant's personal representative, or a person having an insurable interest in the annuitant at the time the annuity contract was made. This prohibition applies only to annuity contracts that include a guaranteed return of premiums or other benefit that is payable upon the death of the annuitant. The measure addresses annuity contracts that use as the measuring life an individual annuitant in whom the person purchasing the annuity has no insurable interest. The definition of an insurable interest tracks the existing definition that applies to life insurance contracts.

S.B. 404 Virginia Health Club Act; changes term health spa to health club throughout Act.

Patron: Alexander

Health Club Act. Changes the term "health spa" to "health club" throughout what had been captioned the Virginia Health Spa Act. The measure includes technical and clarifying changes and adds a requirement that health club contracts state the name and physical address of the health club.

S.B. 406 Insurance companies; permitted investments in foreign securities.

Patron: Newman

Insurance companies; permitted investments in foreign securities. Increases the portion of a domestic insurer's total admitted assets that may be invested in permitted securities of a foreign country from 10 to 15 percent. The measure also increases the aggregate amount of securities of a single foreign country in which a domestic insurer may invest from 3 percent to 5 percent of the insurer's admitted assets if the foreign jurisdiction has a sovereign debt rating of SVO 1. If the foreign jurisdiction's sovereign debt rating is not SVO 1, the maximum amount of its securities in which the insurer may invest remains 3 percent. Finally, the measure allows investments in securities of foreign jurisdictions to be payable in currencies of foreign countries if the investment is effectively hedged, substantially in its entirety, against U.S. currency.

S.B. 459 Electric utility regulation; recovery of nuclear refueling costs.

Patron: Stosch

Electric utility regulation; recovery of nuclear refueling costs. Requires an electric utility to establish a regulatory asset for regulatory accounting and ratemaking purposes under which it shall defer operation and maintenance costs incurred in connection with the refueling of any nuclear-powered generating plant and certain related work. These deferred O&M costs shall be amortized over the refueling cycle, but in no case for more than 18 months. The State Corporation Commission is required to treat the deferred and amortized costs of such regulatory asset as part of the utility's costs for the purpose of certain proceedings.

S.B. 479 Tanning facilities; age limit, parental consent.

Patron: Barker

Tanning facilities; age limit; parental consent. Prohibits minors younger than 15 years of age from using tanning devices at tanning facilities. The measure also prohibits unemancipated minors age 15, 16, or 17 years from using tanning devices at tanning facilities unless a parent or legal guardian has consented in writing. The written consent form is required to include information developed or approved by the Department of Health. Currently, the parent or legal guardian of a prospective customer younger than 15 years of age is required to sign a written warning statement.

S.B. 510 Possession of firearms following conviction of certain crimes; penalty.

Patron: Favola

Possession of firearms following conviction of certain crimes; penalty. Prohibits any person who is convicted of stalking, sexual battery, or assault and battery of a family member involving the use of force from possessing, transporting, or carrying a firearm or any other weapon for a period of five years following his conviction. A violation would constitute a Class 6 felony. The bill also provides for the forfeiture of any weapon possessed, transported, or carried in violation of the prohibition. Finally, the bill provides for a process by which a violator may petition the circuit court for a reinstatement of his rights to possess, transport, or carry a weapon.

S.B. 514 Virginia Energy Plan; schedule for updates.

Patron: Wagner

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

S.B. 516 Employment preference for veterans and spouses of certain veterans.

Patron: Wagner

Employment preference for veterans and spouses of certain veterans. Provides that private employers may grant preference in hiring and promotion to a veteran or the spouse of a veteran with a service-connected permanent and total disability. The measure applies only to veterans who are honorably discharged. The measure provides that granting such preference does not violate any local or state equal employment opportunity law.

S.B. 517 Banks; minimum capital stock requirement.

Patron: Wagner

Banks; minimum capital stock requirement. Provides that the directive that the State Corporation Commission not issue a certificate of authority to a bank unless it finds that individuals have subscribed for specific amounts of the bank's capital stock and surplus does not apply to the Commission's issuance of such a certificate to a bank holding company or to a resulting bank in connection with certain types of mergers involving the holding company and its subsidiary bank.

S.B. 519 Natural gas utilities; upstream supply infrastructure projects.

Patron: Wagner

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. The bill exempts open season capacity acquisitions or releases between a public service company and an affiliated interest from the requirement that the Commission approve contracts entered into by a public service company.