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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: February 8, 2010
Time and Place: 1/2 hour after adjournment/Senate Room B

S.B. 20 Open-end loan plans; caps finance charges and fees that may be charged on extension of credit.

Patron: Locke

Car title loans; finance charges.  Caps the finance charges that a lender may charge on an open-end credit plan that is secured by a nonpurchase-money security interest in a motor vehicle at an annual rate of 36 percent.

A BILL to amend and reenact § 6.1-330.78 of the Code of Virginia, relating to open-end loan plans.

10100304D

S.B. 21 Payday loans; limiting interest to a maximum annual rate of 36 percent.

Patron: Locke

Payday loans; permitted interest.  Repeals provisions of the Payday Loan Act that authorize lenders to charge a loan fee or verification fee, thereby limiting permissible charges on payday loans to simple interest at a maximum annual rate of 36 percent.

A BILL to amend and reenact §§ 6.1-459, 6.1-460, and 6.1-461 of the Code of Virginia, relating to charges on payday loans.

10100361D

S.B. 71 Energy efficiency resource standard; established.

Patron: McEachin

Energy efficiency resource standard.  Requires each electric utility to implement a portfolio of cost-effective electric utility energy efficiency programs that will reduce the consumption of electric energy by its retail customers by 0.3 percent of the forecast consumption for 2011, 3.9 percent of the forecast consumption for 2015, and 12.2 percent of the forecast consumption for 2022. An electric utility may seek rate adjustment clauses to recover the costs of its cost-effective electric utility energy efficiency programs with an enhanced rate of return on such costs of 100 basis points, if the electric utility achieves consumption reductions of not less than 100 percent of the amounts scheduled or 150 basis points if it achieves reductions of 125 percent or more of the amounts scheduled. An electric utility that fails to achieve the scheduled consumption reductions shall make alternative compliance payments of $0.075 for every kilowatt hour by which the utility failed to meet the scheduled consumption reductions. Utilities are not entitled to recover alternative compliance payments from customers. Alternative compliance payments are to be deposited in a Virginia Energy Efficiency and Conservation Fund and used to provide financial incentives for the implementation of energy efficiency and conservation programs.

A BILL to amend the Code of Virginia by adding in Chapter 23 of Title 56 a section numbered 56-596.1, relating to the establishment of an electric energy efficiency standard; alternative compliance payments; Virginia Energy Efficiency and Conservation Fund.

10102466D

S.B. 74 Electric utility regulation; SCC to regulate rate for services of investor-owned electric utilities.

Patron: Reynolds

Electric utility regulation.  Reinstates provisions governing the authority of the State Corporation Commission (SCC) to regulate the rates for services of investor-owned electric utilities that existed prior to the enactment of the Electric Utility Restructuring Act in 1999 and of electric utility re-regulation legislation in 2007. Specifically, the measure eliminates, for rate cases initiated after January 1, 2011, rules that authorize such utilities to earn a rate of return on common equity that is not lower than the average of such returns for a majority of peer group utilities, and to recover certain costs through rate adjustment clauses. In rate cases initiated in 2011 and thereafter the SCC is directed to determine rates, terms, and conditions for the provision of generation, distribution, and transmission services for each investor-owned incumbent electric utility that are just, reasonable, and nondiscriminatory. These proceedings shall be governed by the provisions of Chapter 10 of Title 56 and shall provide fair rates of return on common equity. In such proceedings, the SCC may use any methodology to determine rates of return on common equity that it finds consistent with the public interest. The SCC is authorized to permit a utility to recover its actual costs, if the Commission finds such recovery is just, reasonable, and in the public interest, of peak-shaving programs, energy efficiency programs, participating in the renewable energy portfolio standard program, and environmental projects.

A BILL to amend and reenact §§ 56-234.2, 56-235.2, 56-249.6, 56-577, 56-585.1, and 56-585.2 of the Code of Virginia, relating to the regulation of electric utilities.

10100484D

S.B. 111 Electric utilities; SCC to review rate structure during biennial review process.

Patron: Petersen

Electric utilities; rate structure.  Authorizes the State Corporation Commission (SCC) to review rate structure during the biennial review process. The bill explicitly adds innovative rate structures to the list of energy efficiency programs for which a utility may petition the SCC for cost recovery. The bill also requires the SCC to consider energy efficiency and environmental protection in all proceedings pursuant to the Virginia Electric Utility Regulation Act.

A BILL to amend and reenact §§ 56-576, 56-585.1, and 56-596 of the Code of Virginia, relating to rate structure and energy efficiency and conservation.

10100730D

S.B. 138 Payday loans; permitted interest.

Patron: Miller, J.C.

Payday loans; permitted interest. Repeals provisions of the Payday Loan Act that authorize lenders to charge a loan fee or verification fee, thereby limiting permissible charges on payday loans to simple interest at a maximum annual rate of 36 percent.

A BILL to amend and reenact §§ 6.1-459, 6.1-460, and 6.1-461 of the Code of Virginia, relating to charges on payday loans.

10101898D

S.B. 167 Open-end loan plans; caps finance charges and fees that may be charged on extension of credit.

Patron: Edwards

Open-end loan plans; finance charges.  Caps the finance charges and other charges and fees that may be charged on extension of credit under certain open-end credit plans at an annual rate of 36 percent if the maximum amount that may be advanced under the plan does not exceed $2,500. If the maximum amount that may be advanced exceeds $2,500, the lender may impose finance charges and other charges and fees at such rates and in such amounts as the parties may agree.

A BILL to amend and reenact § 6.1-330.78 of the Code of Virginia, relating to open-end loan plans.

10100297D

S.B. 203 School calendar; local school boards to set first day of school.

Patron: Blevins

Public schools; opening of the school year. Allows local school boards, for years in which Labor Day falls on September 5 or later, to set the school calendar so that the first day students are required to attend school shall be no earlier than one week before Labor Day.

A BILL to amend and reenact § 22.1-79.1 of the Code of Virginia, relating to the opening of the school year.

10103423D

S.B. 250 Open-end credit plan loans; established, penalties.

Patron: Reynolds

Open-end credit plan loans; penalties.  Establishes requirements for open-end credit plan loans that track many of the provisions of the payday Loan Act. Currently, lenders and sellers making open-end loans are not required to be licensed and may charge interest at any rate agreed to by the borrower if the balance is not repaid in full within a 25-day grace period. Under this measure, the maximum amount of an open-end credit plan loan is $500. Interest may not exceed an annual rate of 36 percent, plus a loan fee of 20 percent of the initial advance and a $5 verification fee. The maximum term of a revolving loan agreement is 24 months. Open-end credit plan lenders are required to be licensed by the State Corporation Commission. A violation of the measure is a prohibited practice under the Consumer Protection Act. Violations are subject to civil and criminal penalties.

A BILL to amend and reenact §§ 6.1-249, 6.1-330.55, 6.1-330.78, and 59.1-200 of the Code of Virginia and to amend the Code of Virginia by adding in Title 6.1 a chapter numbered 21, consisting of sections numbered 6.1-480 through 6.1-507, relating to the regulation of lenders engaged in open-end lending; penalties.

10101636D

S.B. 344 Voltage regulation technologies; electric utilities to recover costs and earn 15 percent rate.

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. 375 Title loans; establishes a system for regulating.

Patron: Puckett

Title loans.  Establishes a system for regulating title loans, which are non-purchase money loans secured by a lien on a motor vehicle's title. The interest rate that currently may be charged on such loans is uncapped if the loan is structured as an open-end loan and the borrower does not pay the balance in full within a 25-day grace period. Under this measure, interest may not exceed rate of 22% per month on the portion of the principal that does not exceed $1,000, 20% per month on the portion of the principal exceeding $1,000 but not exceeding $2,000, and 18% per month on the portion of the principal in excess of $2,000.  The original term of a title loan agreement shall be one month. Loans may be renewed and on or before the maturity date of each loan or renewal period, the borrower must pay an amount sufficient to both satisfy any interest due and to reduce the outstanding principal balance by at least 7% of the original loan amount.  If the borrower fails to make a required principal payment, interest will stop accruing on the unpaid amount so that the amount of principal accruing interest during any renewal period is less, by at least 7% of the original loan amount, than the amount of principal accruing interest in the previous period.  The lender may allow the borrower to defer repayment of any non-interest bearing principal to a later date.  Title lenders are required to be licensed by the State Corporation Commission. If a borrower defaults under a title loan agreement, the lender may repossess the motor vehicle and dispose of it in accordance with the Uniform Commercial Code.  Violations are subject to civil and criminal penalties.

A BILL to amend and reenact §§ 6.1-249, 6.1-330.55, and 6.1-330.78 of the Code of Virginia and to amend the Code of Virginia by adding in Title 6.1 a chapter numbered 21, consisting of sections numbered 6.1-480 through 6.1-508, relating to certain loans secured by a lien on a motor vehicle's certificate of title; penalties.

10100128D

S.B. 412 School calendar; local school boards to set first day of school.

Patron: Vogel

School calendar.  Makes local school boards responsible for setting the school calendar and determining the opening of the school year and eliminates the post-Labor Day opening requirement and "good cause" scenarios for which the Board of Education might grant waivers of this requirement.

A BILL to amend and reenact §§ 22.1-26, 22.1-79.1, and 22.1-296 of the Code of Virginia, relating to the opening of the school year.

10101029D

S.B. 424 Motor vehicle equity loans; establishes requirements, penalties.

Patron: Herring

Motor vehicle equity loans; penalties.  Establishes requirements for motor vehicle equity loans, which are nonpurchase-money closed-end loans secured by an interest in a motor vehicle. Interest may not exceed a monthly rate of three percent. The maximum amount of a motor vehicle equity loan is 50 percent of the vehicle's value, not to exceed $2,500. The maximum term of a loan is one year. Motor vehicle equity lenders are required to be licensed by the State Corporation Commission. A violation of the measure is a prohibited practice under the Consumer Protection Act. Violations are subject to civil and criminal penalties.

A BILL to amend and reenact §§ 6.1-249, 6.1-330.55, 6.1-330.78, and 59.1-200 of the Code of Virginia and to amend the Code of Virginia by adding in Title 6.1 a chapter numbered 21, consisting of sections numbered 6.1-480 through 6.1-507, relating to motor vehicle equity loans; penalties.

10101957D

S.B. 425 Open-end credit plan loans; prohibits person extending credit from charging interest at higher rate.

Patron: Herring

Open-end credit plans; loans secured by motor vehicle title.  Prohibits a person extending credit under an open-end or similar plan from charging interest at a rate that exceeds 36 percent per year, unless the loan is secured by a bona fide purchase money security interest in goods sold by such person.

A BILL to amend and reenact § 6.1-330.78 of the Code of Virginia, relating to open-end loans.

10103764D

S.B. 429 Electric utilities; required to develop tariffs offering real-time rates.

Patron: Herring

Electric utilities; real-time rates.  Requires investor-owned electric utilities to develop tariffs offering real-time rates that vary in accordance with the utility's costs of providing electricity seasonally, daily, and throughout each day.

A BILL to amend the Code of Virginia by adding a section numbered 56-234.2:1, relating to real-time rates for electric utility service.

10101857D

S.B. 440 Credit unions and banks; mergers and consolidations.

Patron: Saslaw

Credit unions and banks; mergers and consolidations.  Authorizes (i) a state credit union to merge or consolidate with a bank and (ii) a state bank to merge or consolidate with a federal or state credit union. Each of these mergers or consolidations is subject to the prior approval of the State Corporation Commission.

A BILL to amend the Code of Virginia by adding in Article 5.2 of Chapter 2 of Title 6.1 a section numbered 6.1-44.26 and by adding a section numbered 6.1-225.27:1, relating to acquisitions and mergers involving banks and credit unions.

10103602D

S.B. 450 Renewable energy portfolio standard program; mandatory program for investor-owned utilities.

Patron: Whipple

Mandatory renewable energy portfolio standard program.  Provides for a mandatory renewable energy portfolio standard program. Under current law, the renewable energy portfolio standard program is a voluntary program to which investor-owned utilities apply to receive certain incentives. The bill creates a mandatory RPS program that retains the existing RPS goals and positive incentives and authorizes the SCC to charge a noncompliance fee to utilities that do not meet the RPS goals. The bill also creates the Virginia Sustainable Energy Fund into which utilities that fail to meet the program goals pay noncompliance fees.

A BILL to amend and reenact § 56-585.2 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 56-585.2:1, relating to the renewable energy portfolio standard program.

10100352D

S.B. 565 Voltage regulation technologies; electric utilities to recover costs and earn 15 percent rate.

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. 597 Workers' compensation; insurance carriers to file proof of coverage within 30 days of inception.

Patron: Wampler

Workers' compensation insurance; proof of coverage.  Authorizes workers' compensation insurance carriers to file proof of coverage within 30 days of an insurance policy's inception. The filing shall be made electronically in the form prescribed by, and to the agent designated by, the Workers' Compensation Commission.

A BILL to amend and reenact § 65.2-804 of the Code of Virginia, relating to proof of workers' compensation insurance coverage.

10103989D

S.B. 606 Motor vehicle title loans; establishes requirements, penalties.

Patron: Saslaw

Motor vehicle title loans; penalties. Establishes requirements for motor vehicle title loans, which are nonpurchase money revolving loans secured by an interest in a motor vehicle. Under this measure, if the loan balance is not paid in full within a 25-day grace period (in which case interest does not accrue), interest shall not exceed 22 percent per month on the portion of the outstanding balance of the loan that does not exceed $700; 18 percent per month on the portion between $700 and $1,400; and 15 percent per month on the portion that exceeds $1,400.  There is no cap on the size of such loans.  Money advanced under the loan agreement is required to be repaid in monthly payments over the 12 months following an advance. Interest does not accrue on a loan after the motor vehicle securing the loan has been repossessed or after 60 days following the failure to make a payment. Lenders are barred from seeking a deficiency judgment against a borrower following repossession or sale of the motor vehicle. Motor vehicle equity lenders are required to be licensed by the State Corporation Commission. A violation of the measure is a prohibited practice under the Consumer Protection Act. Violations are subject to civil and criminal penalties.

A BILL to amend and reenact §§ 6.1-249, 6.1-330.55, 6.1-330.78, and 59.1-200 of the Code of Virginia and to amend the Code of Virginia by adding in Title 6.1 a chapter numbered 21, consisting of sections numbered 6.1-480 through 6.1-507, relating to motor vehicle title loans; penalties.

10103115D

S.B. 680 Electric utility regulation; SCC to regulate rate for services of investor-owned electric utilities.

Patron: Puckett

Electric utility regulation.  Reinstates provisions governing the authority of the State Corporation Commission (SCC) to regulate the rates for services of investor-owned electric utilities that existed prior to the enactment of the Electric Utility Restructuring Act in 1999 and of electric utility re-regulation legislation in 2007. Specifically, the measure eliminates, for rate cases initiated after January 1, 2011, rules that authorize such utilities to earn a rate of return on common equity that is not lower than the average of such returns for a majority of peer group utilities, and to recover certain costs through rate adjustment clauses. In rate cases initiated in 2011 and thereafter the SCC is directed to determine rates, terms, and conditions for the provision of generation, distribution, and transmission services for each investor-owned incumbent electric utility that are just, reasonable, and nondiscriminatory. These proceedings shall be governed by the provisions of Chapter 10 of Title 56 and shall provide fair rates of return on common equity. In such proceedings, the SCC may use any methodology to determine rates of return on common equity that it finds consistent with the public interest. The SCC is authorized to permit a utility to recover its actual costs, if the Commission finds such recovery is just, reasonable, and in the public interest, of peak-shaving programs, energy efficiency programs, participating in the renewable energy portfolio standard program, and environmental projects.

A BILL to amend and reenact §§ 56-234.2, 56-235.2, 56-249.6, 56-577, 56-585.1, and 56-585.2 of the Code of Virginia, relating to the regulation of electric utilities.

10104162D

S.B. 710 Utility Transfers Act; SCC to approve acquiring or disposal of control of public utility.

Patron: Edwards

Utility Transfers Act.  Provides that a person shall not acquire or dispose of control of a public utility, or all of its assets, or a telephone company, in whole or in part, without prior approval of the State Corporation Commission.

A BILL to amend and reenact § 56-88.1 of the Code of Virginia, relating to the Utility Transfers Act.

10104088D

S.B. 729 Electric utilities; alternative energy research and demonstration projects.

Patron: McEachin

Electric utilities; alternative energy research and demonstration projects.  Establishes a procedure for an investor-owned public utility to obtain approval of the State Corporation Commission for alternative energy research and demonstration projects.  Such projects are research projects implemented primarily to collect information regarding the feasibility and cost effectiveness of alternative energy technologies, including offshore wind energy, solar energy, energy storage other than pump storage, distributed renewable power programs and tariffs, and customer-based metering energy management and efficiency projects.  The utility may recover the costs of an approved project, with a fair return thereon, through an adjustment to rates.  A utility is limited to annual investment in such projects of the lesser of (i) 1.5 percent of the electric utility's revenues from operations in Virginia for the preceding year or (ii) $100 million.  A project may be approved if the utility demonstrates that the project will satisfy one or more of the following: (a) enhance the electric utility's understanding of the effect of emerging energy technologies on the utility's systems and customers; (b) promote economic development; (c) provide environmental benefits; and (d) supplement any of the electric utility's other renewable energy or energy efficiency initiatives.  This measure expires on July 1, 2015.

A BILL to amend and reenact § 56-235.4 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 56-249.6:1, relating to electric utilities; alternative energy research and demonstration projects; recovery of costs.

10104428D