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2010 SESSION

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Senate Committee on Commerce and Labor

Chairman: Richard L. Saslaw

Clerk: Cheryl Law
Staff: Frank Munyan,Anne Louise Mason
Date of Meeting: January 25, 2010
Time and Place: 1/2 hour after adjournment/Senate Room B

S.B. 27

Patron: Puller

Warranty registration cards.  Prohibits a seller from conditioning the coverage or performance of a warranty, in connection with the sale of personal, family, or household goods, upon the purchaser's returning a warranty registration card, or from providing that the duration of a warranty is dependent upon the return of a warranty registration card. These prohibitions do not apply if the requirement that the purchaser return a warranty registration card is conspicuously disclosed in any advertising and marketing materials that reference the goods' warranty. A seller may use warranty registration cards as a suggested method of proof of the date the goods were purchased. A violation constitutes a prohibited practice under the Virginia Consumer Protection Act.

A BILL to amend and reenact § 59.1-200 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 8.2-317.1, relating to conditioning warranties on returning a registration card; penalties.

10100693D

S.B. 33

Patron: Lucas

Mobile camps for railroad employees.  Establishes standards for rooms at terminals and headquarters, permanent assembly points, and mobile work camps provided by a railroad company for employees and contractors. Railroad companies are required to provide drinking water at assembly points where maintenance-of-way employees meet. The Board of Health is required to adopt regulations concerning mobile camps. The State Corporation Commission is responsible for investigating reports of failures to comply with the requirements.

A BILL to amend the Code of Virginia by adding in Chapter 6 of Title 32.1 an article numbered 6.1, consisting of sections numbered 32.1-211.1, 32.1-211.2, and 32.1-211.3, and by adding a section numbered 56-129.2, relating to the health and safety of railroad maintenance-of-way employees and contractors; regulation of mobile camps and other facilities.

10101124D

S.B. 34

Patron: Lucas

Worker Misclassification Act; penalties.  Prohibits an employer from classifying an individual as an independent contractor if he is an employee. An individual shall be considered an employee of the party which pays that remuneration, for purposes of Titles 40.1 (Labor and Employment), 60.2 (Unemployment Compensation), and 65.2 (Workers' Compensation) unless and until it is shown to the satisfaction of the Department of Labor and Industry that (i) the individual has been and will continue to be free from direction and control of the employer, both under his contract of service and in fact, (ii) the service is outside the usual course of the business of the employer, and (iii) the individual is customarily engaged in an independently established trade, occupation, profession, or business, both under his contract of service and in fact. Discrimination or taking adverse action against any person in retaliation for exercising rights protected under this measure is also prohibited. Violators are subject to criminal penalties, civil penalties, debarment from public contracts, private actions, and stop-work orders.

A BILL to amend the Code of Virginia by adding in Chapter 3 of Title 40.1 an article numbered 1.2, consisting of sections numbered 40.1-28.13 through 40.1-28.22, relating to the failure to properly classify employees; Worker Misclassification Act; penalties.

10101134D

S.B. 36

Patron: Miller, Y.B.

Property insurance; repairing damages.  Requires fire or miscellaneous property insurance policies on residential property to provide that the duty to repair, rebuild, or replace damaged portions of the property includes the obligation to restore the undamaged portion of the property that is adjacent to or in the immediate area of the damaged portion of the property. This obligation applies if repairing only the damaged portion of the property would create differences, not existing prior to the insured loss, between the appearances of the damaged and the undamaged portions of the property.

A BILL to amend the Code of Virginia by adding a section numbered 38.2-2105.1, relating to the duty of an insurer to restore residential real property to its pre-loss condition.

10101405D

S.B. 100

Patron: Stosch

Virginia Stock Corporation Act.  Conforms provisions of the Virginia Stock Corporation Act to revisions to the Model Business Corporation Act prepared by the Business Law Section of the American Bar Association, and makes several clarifying revisions. Elements of the measure include (i) expanding provisions governing the electronic transmission of notices and other communications; (ii) providing that notice to a shareholder that is sent by U.S. mail is effective upon deposit in the U.S. Mail; currently, such mailings to shareholders are effective five days after mailing; (iii) authorizing corporate officers to make equity compensation awards; (iv) confirming shareholders' authority to adopt proxy access and proxy expense reimbursement bylaws; (v) permitting a board of directors to establish separate record dates for determining shareholders entitled to notices of, and to vote at, meetings; (vi) allowing shareholders to participate remotely in shareholders meetings; (vii) addressing the authority of a circuit court to resolve disputes relating to a vote by shareholders; (viii) repealing the existing provision that limits the power of the board of directors to alter the board's size to an amount not greater than 30 percent of its existing size; (ix) confirming the authority of a board of directors to require the corporation to provide indemnity, including advancement and reimbursement; (x) authorizing a corporation to obligate itself to provide indemnification, and advance funds to pay for or reimburse expenses, in advance of the act or omission giving rise to a proceeding; (xi) requiring class voting by affected classes with respect to mergers, unless otherwise provided in the articles of incorporation; and (xii) requiring that the articles of merger in a parent-subsidiary merger recite the Code section under which the merger is being effected.

A BILL to amend and reenact §§ 13.1-603, 13.1-604, 13.1-610, 13.1-614, 13.1-624, 13.1-635, 13.1-646, 13.1-656, 13.1-657, 13.1-658, 13.1-660, 13.1-661, 13.1-663, 13.1-664.1, 13.1-672.1, 13.1-675, 13.1-686, 13.1-689, 13.1-699, 13.1-704, 13.1-714, 13.1-718, 13.1-720, 13.1-721.1, 13.1-725, 13.1-730, 13.1-733, 13.1-734, 13.1-770, 13.1-771, 13.1-772, 13.1-773, 13.1-774, and 13.1-779 of the Code of Virginia, to amend the Code of Virginia by adding sections numbered 13.1-660.2 and 13.1-669.1, and to repeal § 13.1-681 of the Code of Virginia, relating to the Virginia Stock Corporation Act.

10100412D

S.B. 112

Patron: Petersen

Natural gas utilities; cost recovery for certain infrastructure improvement costs.  Authorizes investor-owned natural gas utilities to petition the State Corporation Commission to implement a separate rider that will allow for recovery of certain costs associated with eligible infrastructure replacement projects. Eligible infrastructure replacement projects are projects that: (i) enhance safety or reliability by reducing system integrity risks associated with customer outages, corrosion, equipment failures, material failures, natural forces or other outside force damage; (ii) do not increase revenues by directly connecting the infrastructure replacement to new customers; (iii) reduce greenhouse gas emissions; and (iv) are not included in the natural gas utility's rate base in its most recent rate case. The costs recoverable from an eligible infrastructure replacement project include a return on the investment, depreciation, property taxes, and carrying costs on the over- or under- recovery of the eligible infrastructure replacement costs.

A BILL to amend the Code of Virginia by adding in Title 56 a Chapter numbered 26, consisting of sections numbered 56-603 and 56-604, relating to natural gas utilities; cost recovery for certain infrastructure improvement costs.

10101967D

S.B. 131

Patron: Stosch

Virginia Nonstock Corporation Act. Conforms provisions of the Virginia Nonstock Corporation Act to revisions to the Model Business Corporation Act prepared by the Business Law Section of the American Bar Association, and makes several technical or clarifying revisions. Provisions (i) expand the governing of electronic transmission of notices and other communications; (ii) provide that notice to a member that is sent by U.S. mail is effective upon deposit in the U.S. mail; currently, such mailings to members are effective five days after mailing; (iii) require words in communications to be in the English language, unless otherwise agreed; (iv) permit a board of directors to establish separate record dates for determining members entitled to notices of, and to vote at, meetings; (v) allow members to participate remotely in members’ meetings; (vi) repeal the existing provision that limits the power of the board of directors to alter the board’s size to an amount not greater than 30 percent of its existing size; (vii) confirm the authority of a board of directors to require the corporation to provide indemnity, including advancement and reimbursement; (viii) authorize a corporation to obligate itself to provide indemnification, and advance funds to pay for or reimburse expenses, in advance of the act or omission giving rise to a proceeding; and (ix) correct cross-references.

A BILL to amend and reenact §§ 13.1-803, 13.1-804, 13.1-810, 13.1-813, 13.1-823, 13.1-842, 13.1-845, 13.1-847, 13.1-847.1, 13.1-855, 13.1-866, 13.1-878, 13.1-883, and 13.1-939 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 13.1-844.2, relating to the Virginia Nonstock Corporation Act.

10100413D

S.B. 150

Patron: Stuart

Energy efficiency programs; rate recovery options for utilities.  Eliminates the ability of an investor-owned utility to recover revenue reductions that result from implementation of energy efficiency programs. The bill also requires the Commission to only approve such a petition for a rate increase if it finds that the energy efficiency program will result in a net cost savings to customers after a reasonable period of time and the program is in the public interest.

A BILL to amend and reenact §§ 56-576 and 56-585.1 of the Code of Virginia, relating to rate recovery for energy efficiency programs.

10100956D

S.B. 239

Patron: Watkins

Unemployment benefits; eligibility criteria and impact of legislation. Provides that certain individuals who have exhausted eligibility for unemployment benefits and who are enrolled in approved training programs are eligible for up to 26 weeks of additional benefits. The measure also provides that an individual who voluntarily separates from employment is not disqualified from receiving unemployment compensation benefits if the separation is for a compelling family reason, which is defined as domestic violence, the illness or disability of a member of the individual's immediate family; or the need for the individual to accompany such individual's spouse to a place from which it is impractical for such individual to commute and due to a change in location of the spouse's employment. A provision allowing individuals to receive unemployment benefits if they voluntarily leave employment to follow a military spouse assigned to a new duty station, which provision will become effective only if the federal government appropriates adequate funds specifically for the purpose of paying benefits to such individuals, is repealed.  The measure also requires that bills enhancing unemployment compensation benefits payable to a claimant contain a statement reflecting the projected impact on the solvency level of the unemployment trust fund and the average increase in state unemployment tax liability of employers. Currently, such bills are required to contain an estimate of potential revenue losses of state tax revenues.

A BILL to amend and reenact §§ 30-19.03:1.2, 60.2-528, and 60.2-618, as it is currently effective and as it may become effective, of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 60.2-613.1, relating to unemployment compensation benefits.

10100370D

S.B. 281

Patron: Quayle

Child labor; animal welfare organizations.  Authorizes the participation by children of any age in all activities of any nonprofit entity organized to provide for the care and welfare of animals. However, children aged 13 and younger may participate only if accompanied by a parent.

A BILL to amend and reenact § 40.1-100 of the Code of Virginia, relating to child labor; animal welfare organizations.

10103738D

S.B. 283

Patron: Quayle

Individual health insurance coverage; requirement to obtain.  Provides that a resident of the Commonwealth shall not be required to obtain or maintain a policy of individual insurance coverage. This applies regardless of whether the person has or is eligible for health insurance coverage under any policy or program provided by or through his employer or a plan sponsored by the Commonwealth or the federal government. The measure also states that no provision of Title 38.2 renders a resident liable for any penalty, assessment, fee, or fine as a result his failure to procure or obtain health insurance coverage.

A BILL to amend the Code of Virginia by adding a section numbered 38.2-3430.1:1, relating to individual accident and sickness insurance coverage.

10101103D

S.B. 294

Patron: McDougle

Mortgage Lender and Broker Act; definition of principal.  Provides that a principal, for purposes of the Mortgage Lender and Broker Act, means a person who, directly or indirectly, owns or controls a 10 percent or greater interest in a corporation, partnership, association, cooperative, limited liability company, trust, joint venture, or other legal or commercial entity. Currently, a principal is a person who, directly or indirectly, owns or controls a 10 percent or greater interest in a stock corporation, nonstock corporation, or limited liability company.

A BILL to amend and reenact § 6.1-409 of the Code of Virginia, relating to the definition of a principal in the Mortgage Lender and Broker Act.

10101392D

S.B. 295

Patron: McDougle

Revision of Title 6.1.  Creates proposed Title 6.2 (Financial Institutions and Services) as a revision of existing Title 6.1 (Banking and Finance). Proposed Title 6.2 consists of 22 chapters divided into four subtitles: Subtitle I (General Provisions); Subtitle II (Depository Institutions and Trust Organizations); Subtitle III (Other Regulated Providers of Financial Services); and Subtitle IV (Other Financial Activities). Subtitle I includes title-wide definitions and chapters addressing money and currency, interest and usury, lending practices generally including credit card laws currently in Title 11, and equal credit opportunity laws that are currently in Title 59.1. Subtitle II addresses deposits and accounts at financial institutions, as well as provisions applicable to specific types of depository institutions, including financial institution holding companies, banks, savings institutions, credit unions, and entities conducting trust business. Subtitle III sets out provisions relating to providers of financial services that are subject to licensure or registration with the State Corporation Commission, including industrial loan associations, consumer finance companies, mortgage lenders and brokers, mortgage loan originators, payday lenders, money order sellers and money transmitters, agencies providing debt management plans, and check cashers. Subtitle IV includes provisions regulating the conduct of other financial activities, including refund anticipation loans, safe deposit boxes, and securitization transactions. The Wet Settlement Act and provisions regarding real estate settlement agents are relocated to Title 55.

A BILL to amend and reenact §§ 8.4-105, 19.2-10.1, 36-55.33:1, 36-96.20, 57-60, and 59.1-207.19 of the Code of Virginia; to amend the Code of Virginia by adding a title numbered 6.2, containing Subtitle I, consisting of chapters numbered 1 through 5, containing sections numbered 6.2-100 through 6.2-513, Subtitle II, consisting of chapters numbered 6 through 13, containing sections numbered 6.2-600 through 6.2-1380, Subtitle III, consisting of chapters numbered 14 through 21, containing sections numbered 6.2-1400 through 6.2-2111, and Subtitle IV, consisting of chapters numbered 22 through 24, containing sections numbered 6.2-2200 through 6.2-2405; by adding a section numbered 17.1-626.1; by adding in Chapter 1 of Title 26 a section numbered 26-7.5; and by adding in Title 55 a chapter numbered 27.1, consisting of sections numbered 55-525.1 through 55-525.8, and a chapter numbered 27.2, consisting of sections numbered 55-525.9 through 55-525.25; and to repeal Title 6.1 (§§ 6.1-1 through 6.1-479), Chapter 6 (§§ 11-30 through 11-34) of Title 11, and Chapter 2.3 (§§ 59.1-21.19 through 59.1-21.28) of Title 59.1 of the Code of Virginia, relating to revising and recodifying the laws pertaining to financial institutions and services.

10100127D

S.B. 298

Patron: Miller, J.C.

Homeowners insurance; defective drywall.  Prohibits an insurance company from canceling, refusing to renew, or increasing rates on a policy on an owner-occupied dwelling solely because the dwelling was built using defective drywall.

A BILL to amend and reenact § 38.2-2114 of the Code of Virginia, relating to grounds for canceling, nonrenewing, or increasing rates of property insurance policies; defective drywall.

10101912D

S.B. 311

Patron: Martin

Individual health insurance coverage; requirement to obtain.  Provides that a resident of the Commonwealth shall not be required to obtain or maintain a policy of individual insurance coverage. This applies regardless of whether the person has or is eligible for health insurance coverage under any policy or program provided by or through his employer or a plan sponsored by the Commonwealth or the federal government. The measure also states that no provision of Title 38.2 renders a resident liable for any penalty, assessment, fee, or fine as a result his failure to procure or obtain health insurance coverage.

A BILL to amend the Code of Virginia by adding a section numbered 38.2-3430.1:1, relating to individual accident and sickness insurance coverage.

10101443D

S.B. 344

Patron: Hanger

Installation of voltage regulation technologies; recovery of costs.  Allows electric utilities to recover the costs and to earn a 15 percent rate of return on investments in certain voltage regulation technologies. To qualify for this treatment, a voltage regulation device shall reduce energy consumption, improve grid efficiency, raise or lower voltage dynamically and be 99 percent or more efficient across at least 90 percent of the load curve.

A BILL to amend the Code of Virginia by adding a section numbered 56-585.1:1, relating to the installation of voltage regulation technology devices.

10102539D

S.B. 377

Patron: Puckett

Workplace Fraud Act.  Establishes penalties for employers providing construction services that wrongly classify their employees as independent contractors. The measure authorizes the Commissioner of Labor and Industry to initiate an investigation under specified circumstances to determine whether specified violations occurred, requires the Commissioner to enforce specified provisions by issuing citations, and establishes the method of determining whether an employer-employee relationship exists for purposes of proper classification under specified circumstances. The measure imposes civil penalties on employers who violate its provisions.

A BILL to amend the Code of Virginia by adding in Chapter 3 of Title 40.1 an article numbered 1.2, consisting of sections numbered 40.1-28.13 through 40.1-28.31, relating to the failure to properly classify employees; Workplace Fraud Act.

10103773D

S.B. 393

Patron: Wagner

Virginia Offshore Wind Project Development Commission.  Creates the Virginia Offshore Wind Project Development Commission to facilitate the development of wind-powered electric energy facilities located off the coast of the Commonwealth beyond the Commonwealth's three-mile jurisdictional limit. The Commission is charged, among other tasks, with applying to the U.S. Minerals Management Service for leases or easements for sites for such projects and applying to the U.S. Department of Energy for up to $4 billion in loan guarantees for such projects.

A BILL to amend the Code of Virginia by adding in Title 67 a chapter numbered 12, consisting of sections numbered 67-1200 through 67-1212, relating to the Virginia Offshore Wind Project Development Commission.

10100141D

S.B. 417

Patron: Vogel

Individual health insurance coverage; requirement to obtain.  Provides that a resident of the Commonwealth shall not be required to obtain or maintain a policy of individual insurance coverage. This applies regardless of whether the person has or is eligible for health insurance coverage under any policy or program provided by or through his employer or a plan sponsored by the Commonwealth or the federal government. The measure also states that no provision of Title 38.2 renders a resident liable for any penalty, assessment, fee, or fine as a result of his failure to procure or obtain health insurance coverage.

A BILL to amend the Code of Virginia by adding a section numbered 38.2-3430.1:1, relating to individual accident and sickness insurance coverage.

10102154D

S.B. 562

Patron: Puckett

Unemployment benefits; part-time employment and training programs.  Provides that certain individuals who have exhausted eligibility for unemployment benefits and who are enrolled in approved training programs are eligible for up to 26 weeks of additional benefits. The measure also provides that an individual who was employed part time during at least one-half of the weeks of work in the individual’s base period is deemed to satisfy the requirement that he be available for work and actively seeking and unable to obtain suitable work if he is available for and actively seeking work that is comparable to his part-time work experience in his base period.

A BILL to amend and reenact §§ 60.2-612 and 60.2-618, as it is currently effective and as it may become effective, of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 60.2-613.1, relating to eligibility of certain individuals for unemployment compensation benefits.

10100813D

S.B. 565

Patron: Ticer

Installation of voltage regulation technologies; recovery of costs.  Allows electric utilities to recover the costs and to earn a 15 percent rate of return on investments in certain voltage regulation technologies. To qualify for this treatment, a voltage regulation device shall reduce energy consumption, improve grid efficiency, raise or lower voltage dynamically and be 99 percent or more efficient across at least 90 percent of the load curve.

A BILL to amend the Code of Virginia by adding a section numbered 56-585.1:1, relating to the installation of voltage regulation technology devices.

10100950D

S.B. 577

Patron: McEachin

Virginia Offshore Wind Project Development Authority.  Creates the Virginia Offshore Wind Development Authority to facilitate and support the development of wind-powered electric energy facilities located off the coast of the Commonwealth beyond the Commonwealth's three-mile jurisdictional limit. The Commission is charged with, among other tasks, (i) collecting metocean data, (ii) identifying existing state and regulatory or administrative barriers to the development of the offshore wind industry, (iii) upgrading port facilities to accommodate the manufacturing and assembly of offshore wind energy project components and vessels that will support the construction and operations of offshore wind energy projects, (iv) securing federal loan guarantees, and (v) developing, constructing, and operating interconnection facilities on the Virginia shoreline to connect offshore wind energy projects to the electric grid.

A BILL to amend the Code of Virginia by adding in Title 67 a chapter numbered 12, consisting of sections numbered 67-1200 through 67-1214, relating to the Virginia Offshore Wind Development Authority.

10101758D

S.B. 644

Patron: Howell

Specialized Biotechnology Research Performance Grant Program; established.  Establishes the Specialized Biotechnology Research Performance Grant Program for nonprofit entities engaged in research, development, and production related to molecular diagnostics and drug development that enter into a performance-based memorandum of understanding with the Commonwealth prior to June 30, 2010. Grants would be paid to an eligible entity based in Fairfax County that commits in the memorandum of understanding and fulfills its obligation to (i) make a new capital investment of at least $200 million, (ii) create at least 415 new full-time jobs, and (iii) meet any other criteria set forth in the memorandum of understanding. Grants from the program to a qualified entity shall not exceed $22 million in the aggregate.

A BILL to amend the Code of Virginia by adding in Title 59.1 a chapter numbered 22.7, consisting of a section numbered 59.1-284.24, relating to the Specialized Biotechnology Research Performance Grant Program; established.

10102878D

S.B. 649

Patron: Stosch

Autism Tuition Assistance Grant Program established; mandated health insurance for autism.  Establishes a tuition assistance grant program for students with autism. The program provides grants of no more than $20,000 a year per student to a Virginia nonsectarian private school of choice for students identified as autistic and for whom individual education plans have been written.

 The bill requires that in order to receive the grant the following conditions be satisfied: (i) the student has attended a public school in the Commonwealth and has received special education services for at least one year prior to the receipt of the grant; (ii) the parent has obtained acceptance for admission of the student to an eligible private school; (iii) the parent has executed and submitted to the division superintendent a written statement acknowledging that the public school has implemented an individualized educational program that is reasonably calculated to provide educational benefit; and (iv) the parent has requested the grant of the Superintendent of Public Instruction and notified the division superintendent of that request.

The bill further requires health insurers, health care subscription plans, and health maintenance organizations to provide coverage for the diagnosis and treatment of autism spectrum disorders in individuals under age 21. Coverage is subject to an annual maximum benefit of $36,000.

The bill creates a subtraction for any grants included in the federal adjusted gross income of a parent. The bill establishes a voluntary contribution on the individual income tax return for taxpayers wishing to make a donation to the Grant Program.

The bill also repeals § 58.1-439.12:01, which provides for a tax credit for cigarettes manufactured and exported, and requires that any current or future increase in the revenues of the Commonwealth attributable to the repeal of § 58.1-439.12:01 shall be used for purposes of funding the Grant Program.

A BILL to amend and reenact §§ 38.2-4319, 58.1-322, and 58.1-344.3 of the Code of Virginia, to amend the Code of Virginia by adding in Title 22.1 a chapter numbered 16.1, consisting of sections numbered 22.1-335.1 through 22.1-335.8, and by adding a section numbered 38.2-3418.16, and to repeal § 58.1-439.12:01 of the Code of Virginia, relating to autism.

10103496D