Virginia House Bill HB944

Virginia 2022 Regular Session

• Introduced: 1/12/22
• Refer: 1/12/22

Caption

SCC; identification of certain provisions regarding employee welfare benefit plans, report.

Impact

The bill could significantly affect state laws related to employee benefits. By formalizing the identification of exempt provisions, it aims to clarify the regulatory landscape for employers and employees dealing with self-insured welfare plans. This could potentially lead to adjustments in how local and state laws are aligned with federal regulations under ERISA, impacting compliance obligations for businesses operating in Virginia.

Summary

House Bill 944 mandates that the State Corporation Commission identifies statutory and regulatory provisions from which employee welfare benefit plans, as defined under the Employee Retirement Income Security Act (ERISA), are exempted if they are self-insured or self-funded. The aim is to compile this information in a comprehensive report, to be presented to specific committee chairs by a set deadline. This initiative may enhance transparency regarding which state laws affect such plans, ultimately guiding policy decisions.

Contention

Notable points of contention surrounding HB944 relate to the potential financial impact on employee welfare benefit plans. Critics may argue that imposing new reporting requirements could increase administrative burdens for employers, particularly smaller businesses that may struggle with the additional compliance costs. Proponents of the bill, however, contend that it fosters clarity and could lead to better regulatory alignment, ensuring that employees are adequately protected under both state and federal laws.