Benefits consortium; formation by a sponsoring association as a nonprofit agricultural organization. (HB1661)

Introduced By

Sen. Chris Head (R-Roanoke)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Association health benefit plans established by associations of employers; health benefit plans for members of certain agricultural organizations. Authorizes a trust, as a benefits consortium, to sell health benefits plans to members of a sponsoring association, which is a nonstock corporation that operates as a nonprofit agricultural organization and is created primarily to promote programs for the development of rural communities and the economic stability and sustainability of farmers in the Commonwealth. The bill provides that the trust is subject to the federal Employee Retirement Income Security Act of 1974 and U.S. Department of Labor regulations applicable to multiple employer welfare arrangements and to the authority of the U.S. Department of Labor to enforce such law and regulations. The bill requires the trust to operate as a nonprofit voluntary employee beneficiary association. The bill (i) prohibits a self-funded multiple employer welfare arrangement (MEWA) from issuing health benefit plans in the Commonwealth until it has obtained a license from the State Corporation Commission; (ii) provides that health benefit plans issued by a self-funded MEWA shall be subject to taxes and maintenance assessments levied upon insurance companies; (iii) provides that health benefit plans issued by a self-funded MEWA are subject to protections of and other provisions of the Virginia Life, Accident and Sickness Insurance Guaranty Association; (iv) makes domestic self-funded MEWAs subject to all financial and solvency requirements imposed by provisions of Title 38.2 on domestic insurers unless domestic self-funded MEWAs are otherwise specifically exempted; and (v) provides that health benefit plans issued by a self-funded MEWA shall be exempt from all statutory requirements relating to insurance premium rates, policy forms, and policy cancellation and nonrenewal. The bill provides that the sponsoring association shall not, by virtue of its sponsorship of the benefits consortium or any benefits plan, be subject to the insurance laws of the Commonwealth or the tax levied on insurance companies pursuant to § 58.1-2501. Read the Bill »


Bill Has Failed


12/03/2018Prefiled and ordered printed; offered 01/09/19 19100141D
12/03/2018Referred to Committee on Commerce and Labor
01/10/2019Assigned C & L sub: Subcommittee #1
01/17/2019Impact statement from SCC (HB1661)
01/17/2019House subcommittee amendments and substitutes offered
01/17/2019Subcommittee recommends reporting with substitute (4-Y 3-N)
01/31/2019House committee, floor amendments and substitutes offered
01/31/2019Reported from Commerce and Labor with substitute (14-Y 6-N) (see vote tally)
01/31/2019Committee substitute printed 19106118D-H1
02/03/2019Read first time
02/04/2019Read second time
02/04/2019Committee substitute agreed to 19106118D-H1
02/04/2019Engrossed by House - committee substitute HB1661H1
02/05/2019Read third time and passed House (57-Y 41-N 1-A)
02/05/2019VOTE: PASSAGE (57-Y 41-N 1-A) (see vote tally)
02/06/2019Constitutional reading dispensed
02/06/2019Referred to Committee on Commerce and Labor
02/10/2019Impact statement from SCC (HB1661H1)
02/11/2019Reported from Commerce and Labor with substitute (15-Y 0-N) (see vote tally)
02/11/2019Committee substitute printed 19106634D-S1
02/11/2019Rereferred to Finance
02/13/2019Reported from Finance (11-Y 3-N) (see vote tally)
02/14/2019Impact statement from SCC (HB1661S1)
02/14/2019Constitutional reading dispensed (40-Y 0-N) (see vote tally)
02/15/2019Read third time
02/15/2019Reading of substitute waived
02/15/2019Committee substitute agreed to 19106634D-S1
02/15/2019Engrossed by Senate - committee substitute HB1661S1
02/15/2019Passed Senate with substitute (35-Y 4-N) (see vote tally)
02/19/2019Placed on Calendar
02/19/2019Senate substitute agreed to by House 19106634D-S1 (58-Y 41-N)
02/19/2019VOTE: ADOPTION (58-Y 41-N) (see vote tally)
02/22/2019Bill text as passed House and Senate (HB1661ER)
02/22/2019Signed by Speaker
02/22/2019Signed by President
02/25/2019Impact statement from SCC (HB1661ER)
03/04/2019Enrolled Bill communicated to Governor on March 4, 2019
03/04/2019G Governor's Action Deadline Midnight, March 26, 2019
03/26/2019Governor's recommendation received by House
03/26/2019Governor's substitute printed 19107828D-H2
04/03/2019Placed on Calendar
04/03/2019House rejected Governor's recommendation (36-Y 62-N)
04/03/2019VOTE: REJECTED (36-Y 62-N) (see vote tally)
04/03/2019Communicated to Governor
04/03/2019G Governor's Action Deadline Midnight, May 3, 2019
05/02/2019G Vetoed by Governor


This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 2 clips in all, totaling 2 minutes.