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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: February 26, 2018
Time and Place: 15 Min after adj. Senate Room A, Pocahontas Building

H.B. 139 Health insurance; physician reimbursements, credentialing.

Patron: Head

Health insurance; physician reimbursements; credentialing. Requires health insurers and other carriers that credential the physicians in their provider networks to establish protocols and procedures for reimbursing physicians for health care services that are provided to covered persons during the period in which a physician's credentialing application is pending.

A BILL to amend the Code of Virginia by adding a section numbered 38.2-3407.10:1, relating to reimbursement of a physician for services rendered during the period in which a credentialing application is pending before a health insurance carrier.

18100678D

H.B. 234 Health insurance; synchronization of medications.

Patron: Hope

Health insurance; synchronization of medications. Requires any health plan providing prescription drug coverage to permit and apply a prorated daily cost-sharing rate to prescriptions that are dispensed by a network pharmacy for a partial supply if the prescribing provider or the pharmacist determines the fill or refill to be in the best interest of the enrollee and the enrollee requests or agrees to a partial supply for the purpose of synchronizing the enrollee's medications. Such a proration shall not occur more frequently than annually. The measure also prohibits such a health plan from denying coverage for the dispensing of a medication that is dispensed by a network pharmacy on the basis that the dispensing is for a partial supply if the prescribing provider or the pharmacist determines the fill or refill is in the best interest of the enrollee and the enrollee requests or agrees to a partial supply for the purpose of synchronizing his medications. The measure requires health plans to allow a pharmacy to override denial codes indicating that a prescription is being refilled too soon for the purpose of synchronizing the enrollee's medications. The measure prohibits health plans from using payment structures incorporating prorated dispensing fees and requires that dispensing fees for partially filled or refilled prescriptions be paid in full for each prescription dispensed regardless of any prorated copay or fee paid for synchronization services.

A BILL to amend the Code of Virginia by adding a section numbered 38.2-3407.9:04, relating to health benefit plans; prescription drug coverage; synchronization of medications.

18100454D

H.B. 686 Unclaimed property; deposits and funds with financial institutions, charges and interest.

Patron: Ransone

Unclaimed property; deposits with financial institutions; charges and interest. Revises an exception to a provision that prohibits a bank or other holder from (i) imposing charges on dormant or inactive accounts in a manner that differs from active accounts or (ii) ceasing to pay interest on an inactive account to provide that the holder may impose charges or cease payment of interest due to dormancy but may only reverse or cancel the charges or retroactively credit interest if it does so for all customers that request a reversal or cancellation of dormancy or inactivity charges or a retroactive credit of interest.

A BILL to amend and reenact § 55-210.3:01 of the Code of Virginia, relating to the Uniform Disposition of Unclaimed Property Act; bank deposits and funds in financial organizations; charges on inactive accounts.

18105321D

H.B. 922 Electric vehicle charging stations; local and public operation.

Patron: Bulova

Electric vehicle charging stations; local and public operation. Authorizes any locality or public institution of higher education, or the Department of Conservation and Recreation, to locate and operate a retail fee-based electric vehicle charging station on property such entity owns or leases. The bill permits a locality to provide that the use of such station is restricted to employees of the locality and install signage that provides notice of such restriction. The bill exempts such a locality, public institution of higher education, or the Department of Conservation and Recreation from being considered a public utility solely because of the sale of electric vehicle charging service or the ownership or operation of an electric vehicle charging station and further exempts such service from constituting the retail sale of electricity.

A BILL to amend and reenact §§ 56-1.2, 56-1.2:1, and 56-232.2:1 of the Code of Virginia and to amend the Code of Virginia by adding sections numbered 10.1-104.01, 15.2-967.2, 23.1-1301.1, and 23.1-2908.1, relating to electric vehicle charging stations; local and public operation.

18104708D

H.B. 1087 Animal research; alternative test methods, civil penalty.

Patron: Boysko

Animal research; alternative test methods; civil penalty. Requires a manufacturer or contract testing facility to use an alternative test method when available. An alternative test method is defined as one which (i) provides information of equivalent or better scientific quality and relevance than animal test methods, (ii) has been identified by a validation body and adopted by the relevant federal agency or program within an agency responsible for regulating the specific product or activity for which the test is being conducted, and (iii) does not use animals, or, when there is no test method available that does not use animals, uses the fewest animals possible and reduces the level of suffering or stress, to the greatest extent possible, of an animal used for testing. Such provision does not apply to a manufacturer or contract testing facility using an animal test method for the purpose of medical research. The bill authorizes the Attorney General to bring a civil action to enforce such provision. Any person who violates such provision may be subject to a civil penalty of not more than $5,000 and any court costs and attorney fees.

A BILL to amend the Code of Virginia by adding in Chapter 65 of Title 3.2 an article numbered 13, consisting of sections numbered 3.2-6591, 3.2-6592, and 3.2-6593, relating to animal research; alternative test methods; civil penalty.

18102652D

H.B. 1201 Health benefit; plans offered by foreign health insurer.

Patron: Cline

Health benefit plans offered by foreign health insurers. Authorizes any foreign health insurer to sell individual or group health benefit plans in the Commonwealth if it is approved to sell such plans in the foreign health insurer's domiciliary state. The measure establishes requirements applicable to such sales, including registration, disclosures, compliance with marketing standards, and financial condition. The measure has a delayed effective date of July 1, 2019.

A BILL to amend and reenact § 38.2-1802 of the Code of Virginia and to amend the Code of Virginia by adding in Title 38.2 a chapter numbered 64, consisting of sections numbered 38.2-6400 through 38.2-6407, relating to sales of health benefit plans from persons licensed to sell such plans in other states.

18102874D

H.B. 1233 Apprentice agreements; ratio of apprentices to journeymen.

Patron: Hugo

Apprentice agreements; ratio of apprentices to journeymen. Prohibits the Apprenticeship Council from adopting standards for apprenticeship agreements governing the numeric ratio of journeymen to apprentices that require more than one journeyman for two apprentices. This limit on the ratio of journeymen to registered apprentices does not apply to work performed under the federal Davis-Bacon Act.

A BILL to amend and reenact §§ 40.1-120 and 40.1-126 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 40.1-120.1, relating to voluntary apprenticeships; ratio of apprentices to journeymen.

18103232D

H.B. 1252 Renewable energy power purchase agreements; pilot programs.

Patron: Kilgore

Renewable energy power purchase agreements; pilot programs. Requires Kentucky Utilities (KU) to establish a pilot program for certain third party power purchase agreements. The measure provides that participation in the service territories of KU and Appalachian Power Company (APCo) is limited to eligible customer-generators that are (i) exempt under § 501(c)(3) of the Internal Revenue Code; (ii) elementary, middle or secondary schools; or (iii) public or nonprofit private institutions of higher education. The bill explicitly prohibits APCo and KU customers that are being served pursuant to subdivision A 5of § 56-577 of the Code of Virginia from participating in the pilot programs.

A BILL to amend and reenact the first enactment of Chapters 358 and 382 of the Acts of Assembly of 2013, as amended by Chapter 803 of the Acts of Assembly of 2017, relating to pilot programs for certain power purchase agreements.

18106339D

H.B. 1258 Wireless communications infrastructure; zoning.

Patron: Kilgore

Zoning for wireless communications infrastructure. Establishes parameters regarding applications for zoning approvals for certain wireless support structures. Applications for certain new wireless support structures that are 50 feet or less above ground level and for the co-location on an existing structure of a wireless facility that is not a small cell facility are exempt from requirements that they obtain a special exception, special use permit, or variance, though a locality may require administrative review for the issuance of any zoning permits or an acknowledgement that zoning approval is not required for such projects. Aspects of the zoning approval process addressed in this measure include periods for approval or disapproval of applications, a requirement that applications are deemed approved if not approved or disapproved within the applicable period; application fees; a prohibition against unreasonably discriminating between applicants and other wireless services providers, providers of telecommunications services, and nonpublic providers of cable television and electric services; and limits on the number of new wireless support structures that can be installed in a specific location. The measure prohibits a locality, in its receiving, consideration, and processing of an application for zoning approval, from engaging in certain activities. The measure states that it does not prohibit a locality from disapproving an application submitted under a standard process project on the basis of the availability of existing wireless support structures within a reasonable distance that could be used for co-location at reasonable terms and conditions without imposing technical limitations on the applicant. The measure also requires any publicly-owned or privately-owned wireless service provider operating within the Commonwealth or serving residents of the Commonwealth shall, by January 1, 2019, and annually thereafter by January 1, provide to the Department of Housing and Community Development a report detailing, by county, city, and town, the expansion of service in previously unserved geographic areas that are provided access to high speed Internet and wireless services.

A BILL to amend and reenact § 15.2-2316.3 of the Code of Virginia and to amend the Code of Virginia by adding sections numbered 15.2-2316.4:1, 15.2-2316.4:2, and 15.2-2316.4:3, relating to zoning for wireless communications infrastructure.

18106428D

H.B. 1270 Regional Greenhouse Gas Initiative; prohibition on participation by Commonwealth.

Patron: Poindexter

Regional Greenhouse Gas Initiative; prohibition on participation by Commonwealth. Prohibits the Governor or any state agency from adopting any regulation establishing a carbon dioxide cap-and-trade program or bringing about the participation by the Commonwealth in a regional market for the trading of carbon dioxide allowances. The bill provides that the Commonwealth shall be allowed to participate in such a cap-and-trade program if the House of Delegates and the Senate of Virginia each adopt a resolution that specifically references and approves the regulatory text proposed for adoption by a state agency.

A BILL to amend the Code of Virginia by adding a section numbered 10.1-1184.1, relating to Regional Greenhouse Gas Initiative; prohibition on participation by Commonwealth.

18103053D

H.B. 1368 Group accident and sickness insurance; eligibility for continuation of coverage.

Patron: Jones, J.C.

Group accident and sickness insurance; eligibility for continuation of coverage. Disqualifies a discharged employee from continuation of health insurance coverage under his former employer's group policy if the employee was discharged as a result of gross misconduct. The provision does not apply if the employer is required to provide for continuation of coverage under its group health plan pursuant to the federal Consolidated Omnibus Budget Reconciliation Act of 1985.

A BILL to amend and reenact § 38.2-3541 of the Code of Virginia, relating to group accident and sickness insurance policies; eligibility for continuation of coverage after termination; gross misconduct.

18103836D

H.B. 1451 Net energy metering; SCC to establish pilot program for schools generating electricity.

Patron: Sullivan

Net energy metering; schools. Directs Dominion Virginia Energy to conduct a pilot program under which a public school that generates more electricity from a wind-powered or solar-powered generation facility than it consumes may either credit the excess electricity to one or more other schools in the school division or be paid for the excess electricity at the corresponding retail rate.

A BILL to direct the State Corporation Commission to establish a pilot program for schools that generate electricity at levels that exceed the school's consumption.

18106739D

H.B. 1486 Va. Life, Accident & Sickness Insurance Guaranty Assoc.; assessments for long-term care insurance.

Patron: Kilgore

Virginia Life, Accident and Sickness Insurance Guaranty Association. Amends the methodology for allocating assessments for long-term care insurance written by an impaired or insolvent insurer. The measure requires that 50 percent of such assessments be allocated to health insurers and 50 percent to life insurers. The measure provides that health maintenance organizations (HMOs) will participate in the Guaranty Association. Provisions that established an alternative method to address insolvencies of HMOs are repealed. The measure also updates terminology and makes conforming amendments based on proposed changes to the National Association of Insurance Commissioner's Life and Health Insurance Guaranty Association model act.

A BILL to amend and reenact §§ 38.2-1016.1, 38.2-1700 through 38.2-1710, 38.2-1714, 38.2-1715, 38.2-4302, 38.2-4310, 38.2-4319, 38.2-5506, 38.2-5509, 38.2-5510, and 55-532 of the Code of Virginia and to repeal §§ 38.2-4317 and 38.2-4317.1 of the Code of Virginia, relating to the Virginia Life, Accident and Sickness Insurance Guaranty Association.

18106602D

H.B. 1552 Workforce Development, Virginia Board of; strategies to identify and engage certain persons.

Patron: James

Virginia Board of Workforce Development; pilot program. Directs the Virginia Board of Workforce Development to recommend strategies to identify and engage discouraged workers and unemployed individuals not currently served by the workforce system and measurably improve the performance of federal Workforce Innovation and Opportunity Act of 2014 Title 1 Youth programs so they lead to improved employability and the development of skills to enter the workforce in a high-demand field. The Board shall report on the recommended strategies by October 1, 2019.

A BILL to direct the Virginia Board of Workforce Development to develop strategies to identify and engage certain persons; report.

18106098D

H.B. 1558 Electric utility regulation; grid modernization, energy efficiency programs.

Patron: Kilgore

Electric utility regulation. Provides that, in lieu of the biennial review proceedings previously required, Dominion Energy Virginia (DEV) and Appalachian Power (APCo) will be subject to triennial reviews of their rates, terms, and conditions for generation, distribution, and transmission services. The measure advances the termination of the Transitional Rate Period for DEV by three years, to December 31, 2016. The termination of the Transitional Rate Period for APCo remains December 31, 2017. DEV's first review after its Transitional Rate Period will be held in 2021, which is one year earlier than currently scheduled, and will utilize the four 12-month test periods beginning January 1, 2017, and ending December 31, 2020. APCo's first review after its Transitional Rate Period will be held in 2020, which is unchanged, and will utilize the three 12-month test periods beginning January 1, 2017, and ending December 31, 2019. The measure also: (i) requires the State Corporation Commission (SCC) to enter its final order on petitions for approval of a voluntary rate or rate design test or experiment by the earlier of not more than six months after the filing of the petition or three months after the hearing on the petition; (ii) excludes from the definition of "public utility" for purposes of the Utility Facility Act a company that provides storage of electric energy that is not for sale to the public, if the company is not organized as a public utility; (iii) authorizes an investor-owned electric utility, if a cable operator does not elect to relocate facilities underground when the electric utility relocates its facilities underground, to either convey poles to the cable operator or retain ownership of the poles; (iv) provides that an energy efficiency program proposed by an electric or natural gas utility is in the public interest if the net present value of the benefits exceeds the net present value of the costs as determined by any three of four benefit cost tests; (v) exempts large general service customers from being charged any costs of new energy efficiency programs; (vi) establishes a new rate adjustment clause category for expenses of electric distribution grid transformation projects, which include advanced metering infrastructure, intelligent grid devices, automated control systems for electric distribution circuits and substations, communications networks for service meters, certain distribution system hardening projects, physical security measures at key distribution substations, cyber security measures, certain energy storage systems and microgrids, electrical facilities and infrastructure for electric vehicle charging systems, LED street light conversions, and new customer information platforms; (vii) declares that electric distribution grid transformation projects are in the public interest; (viii) provides that the costs of such projects may be recovered either through a rate adjustment clause or through a customer credit reinvestment offset; (ix) directs the SCC to approve, without consideration of their reasonableness or prudence, the costs of the conversion of an investor-owned electric utility's existing overhead distribution tap lines with new underground facilities if the average cost per customer does not exceed $20,000 and the costs per mile do not exceed $750,000; (x) requires SCC to enter an order on a petition for approval of an electric distribution grid transformation project within six months after the petition's filing; (xi) increases the amount of capacity of solar and wind generation facilities constructed by a utility that are in the public interest from 50 megawatts to 5,000 megawatts, including rooftop solar installations with a capacity of not less than 50 kilowatts; (xii) declares that electric distribution grid transformation projects, offshore wind generation facilities with a capacity of not more than 16 megawatts, and all onshore wind generation facilities, are in the public interest and that the costs thereof may be recovered either through a rate adjustment clause or through a customer credit reinvestment offset; (xiii) provides that if DEV has not commenced construction of an offshore wind generation facility by July 1, 2023, the SCC may cease its rate adjustment clause and roll the costs into its rate base without increasing base rates; (xiv) requires certain costs related to generation plant facilities fueled by coal, natural gas, or oil or for automated meter reading electric distribution service meters and costs associated with projects necessary to comply with state or federal environmental laws, regulations, or judicial or administrative orders relating to coal combustion by-product management that the utility does not petition to recover through a rate adjustment clause to be deemed to have been recovered through customer rates during the test period under review unless doing so would place the utility in an under-earning position, in which event the SCC is required to authorize deferred recovery of such costs and allow the utility to amortize and recover the deferred costs over future periods; (xv) bars the SCC, in the first triennial review proceeding conducted after January 1, 2021, from ordering a rate increase for DEV and from ordering a rate decrease of more than $50 million; (xvi) allows utilities to reduce or eliminate amounts of overearnings that otherwise would be required to be credited to customers by applying a customer credit reinvestment offset for expenses on new solar and wind generation facilities and electric distribution grid transformation projects, if the utility has invested in such projects an amount not less than 100 percent of amount of its overearnings; (xvii) provides that costs associated with new utility-owned solar or wind generation facilities or with electric distribution grid transformation projects that are the subject of a customer credit reinvestment offset are not recoverable through the utility's base rates or a rate adjustment clause; (xviii) requires APCo to continue funding its pilot program for energy assistance and weatherization for low-income, elderly, and disabled individuals at no less than the existing levels, and requires DEV to fund its similar pilot program at no less than $13 million annually; (xix) directs the SCC to find that prior to January 1, 2024, the construction or purchase by a public utility of certain solar or wind generation facilities, or the purchase by a public utility of energy, capacity, and environmental attributes from such solar facilities is in the public interest, and requires 25 percent of the generation capacity from such facilities to be from the purchase by a public utility of energy, capacity, and environmental attributes from solar facilities owned by persons other than a public utility; (xx) requires all of such solar generation capacity located in the Commonwealth to be subject to competitive procurement but allows a public utility to select solar generation capacity without regard to whether such selection satisfies price criteria if the selection of the solar generating capacity materially advances non-price criteria if such non-price solar generating capacity selected does not exceed 25 percent of the utility's solar generating capacity; (xxi) requires electric utilities to file updates its integrated resource plan (IRP) in each year immediately preceding the year the utility is subject to a triennial review filing rather than annually; and (xxii) requires each electric utility's IRP to evaluate long-term electric distribution grid planning and proposed electric distribution grid transformation projects and developing a long-term plan for energy efficiency measures to accomplish policy goals of reduction in customer bills, reduction in emissions, and reduction in carbon intensity. The provision creating the customer credit reinvestment offset expires on July 1, 2028. The measure also includes enactment clauses that (a) establish a pilot program consisting of the approval of the underground construction of two electrical transmission lines and directs the SCC to approve as a qualifying project a transmission line that appears to track the I-66 Hybrid Route that has been considered in the application of DEV for the Haymarket transmission line project in Prince William County and approve a rate adjustment clause to allow the utility to recover from the utility's Virginia jurisdictional customers the costs of the project; (b) bar APCo bar from recovering $10 million of incurred fuel costs; (c) require DEV to provide current customers voluntary bill credits of $133 million in 2018 and $67 million in 2019; (d) require reductions in the rates for incumbent electric utilities to reflect reductions in federal tax liability resulting from the enactment of federal tax legislation, including reductions in 2018 of $50 million by APCo and $125 million by DEV; (e) direct the SCC to conduct pilot programs for the deployment of electric power storage batteries with capacity limits of up to 10 MW for APCo and 30 MW for DEV; (f) allow certain large nonresidential customers that enter into a three-year minimum exclusive supply agreement to receive a Manufacturing and Commercial Competitiveness Retention Credit that reduces their base generation charges by two percent; (h) require DEV to consider in its next IRP whether the construction or purchase of one or more generation facilities with at least one MW of generating capacity that use combined heat and power or waste heat to power are in the customer interest; (i) require APCo and DEV to investigate the feasibility of providing broadband Internet services using utility distribution and transmission infrastructure; (j) require the SCC to submit annual reports that assess, among other things, new construction and development of new utility-owned and utility-operated generating facilities utilizing energy derived from sunlight; (k) require APCo and DEV to develop programs of energy conservation measures, with APCo's program costing not less than $140 million and DEV's program costing not less than $870 million; (l) require APCo and DEV to investigate and report upon its economic development activities and assistance provided to Virginia localities in the area of economic development in each utility's respective service area; (m) require APCo and DEV to investigate potential improvements to net energy metering programs; (n) require DEV's IRPs to incorporate policy goals of reduction in customer bills, reduction in emissions, and reduction in the utility's carbon intensity; (o) require the SCC to submit annual reports assessing the reliability of electrical transmission or distribution systems, the integration of utility-owned or customer-owned renewable electric generation resources with the utility's electric distribution grid, the level of investment in generation, transmission, or distribution of electricity, and related matters; (p) provide that the provisions of this measure apply retroactively to applications regarding new underground facilities or offshore wind facilities pending with the SCC on or after January 1, 2018; (q) require APCo, subject to SCC approval, by July 1, 2018, to construct or acquire solar generation facilities in Virginia with an aggregate capacity of not less than 200 MW; (r) provide that no more than one half of the combined capital investment amount attributable to investments in new utility-owned solar or wind generation facilities, electric distribution grid transformation projects, undergrounding distribution facilities, undergrounding two transmission lines, and energy efficiency programs shall be investments in undergrounding distribution facilities, undergrounding two transmission lines, and electric grid distribution transformation projects solely designed for physical security at distribution substations; and (s) requires the SCC to report after each triennial review on all investments made by the utility during the test period or periods under review in new utility-owned generation facilities utilizing energy derived from sunlight or from onshore or offshore wind and electric distribution grid transformation projects, with analysis of the financial effects of such investments.

A BILL to amend and reenact §§ 56-234, 56-265.1, 56-466.2, 56-576, 56-585.1, 56-585.1:1, 56-585.1:2, 56-599, and 56-600 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 56-585.1:4, relating to electric utility regulation; grid modernization; energy efficiency programs; schedule for rate review proceedings; Transitional Rate Period; energy storage facilities; electric distribution grid transformation projects; wind and solar generation facilities; coal combustion by-product management; pilot programs; undergrounding electrical transmission lines; fuel factor; bill credits; rate reductions attributable to changes in federal tax law; relocation of cable facilities; integrated resource planning; natural gas utility efficiency programs.

18106949D

H.B. 1583 Commonwealth Broadband Chief Advisor; establishes position.

Patron: Byron

Commonwealth Broadband Chief Advisor. Establishes the position of Commonwealth Broadband Chief Advisor (Chief Advisor) within the Office of the Secretary of Commerce and Trade to serve as Virginia's single point of contact and integration for broadband issues, efforts, and initiatives and to increase the availability and affordability of broadband throughout all regions of the Commonwealth. The bill creates the 17-member Advisory Board for the purpose of providing direction for the Chief Advisor and policy guidance to the General Assembly and the Commonwealth's localities.

A BILL to amend the Code of Virginia by adding a section numbered 2.2-205.2, relating to the Commonwealth Broadband Chief Advisor.

18107017D