LEG
REG REVIEW
2011, 1st
Issue January 3, 2011
LEG REG REVIEW is a periodic newsletter
produced by PHILLIPS ASSOCIATES, a professional lobbying and consultant firm
located near the State Capitol. It
contains news on the legislative and regulatory scene in
HOUSE PICKS COMMITTEE
CHAIRS
Both Republicans and Democrats designated who will chair the 2011-2012 PA House committees. Major organizational developments are the elimination of the House Intergovernmental Affairs Committee which had been chaired by W. Curtis Thomas (D-Phila.) and Chris Ross (R-Chester) and the split of the House Health & Human Services Committee into two, the Health Committee and the Human Services Committee. In all, there are ten new GOP chairs and eleven new Democratic chairs. The other shift is ideological where some committees now have chairs more conservative than their predecessors. New Labor Relations Committee Chair is Ron Miller (R-York); succeeds more moderate Gene Digirolamo (R-Bucks) who was re-assigned to chair the Human Services Committee. Labor Relations Committee originates Workers’ Compensation legislation. New State Government Chair is Daryl Metcalfe (R-Butler) replacing Kerry Benninghoff (R-Centre) who is the new Finance Committee Chair. The Finance Committee is pivotal since that’s where tax legislation originates.
Continuity prevailed in two other
committees although roles of the committee chairs were reversed with the Republican
being the Majority Chairman. Insurance
Committee Chair is Nicholas Micozzie (R-Delaware) with Tony DeLuca
(D-Allegheny) becoming Minority Chair.
The Commerce Committee which handles banking and financial services is
now chaired by Dick Hess (
Committee Republican
(Majority) Chair Democrat
(Minority) Chair
Aging & Older Adult Services Tim Hennesey (
Agriculture &
Rural Affairs John Maher (
Appropriations Bill
Adolph (
Children & Youth Dennis O’Brien
(Phila.) Louise Williams Bishop
(Phila.)
Commerce Dick
Hess (
Consumer Affairs Bob Godshall (
Education Paul Clymer (Bucks) James Roebuck (Phila.)
Envir. Resources &
Energy Scott Hutchinson
(Venango) Bud George (
Game & Fisheries John
Evans (
Health Matt
Baker (Tioga) John Myers
(Phila.)
Human Services Gene DiGirolamo (Bucks) Mark Cohen (Phila.)
Insurance Nicholas
Micozzie (
Judiciary Ron Marsico (Dauphin) Tom Caltagirone (Berks)
Labor Relations Ron Miller (
Liquor Control John Taylor (Phila.) Dante Santoni (Berks)
Local Government Tom Creighton (
Prof. Licensure Julie Harhart (Lehigh) Harry Readshaw (Allegheny)
State Government Daryl Metcalfe (
Tourism Jerry
Stern (Blair) Thaddeus
Kirkland (
Transportation Richard
Geist (Blair) M McGeehan (Phila.)
Urban Affairs Chris Ross (
Veterans &
Emergency Prep. Stephen Barrar (
RED FLAG RULE SOFTENS
According to Reading-based Stevens & Lee, the Federal Trade Commission’s Red Flag Rule which became effective December 31, 2010, has been softened to reduce the numbers/types of businesses covered by the new privacy rule. Originally advanced in 2007, the Red Flag Rule suffered enactment delays because of a succession of law suits from those interests claiming that they should not be considered as ‘creditors’ and thus subject to the Rule. The Red Flag Rule governs a firm’s identification of business customers so as to reduce identity theft and lists privacy breach compliance requirements. Traditional lenders such as banks, credit unions, and consumer discount companies are still governed by the December 31, 2011, Red Flag Rule. Although not updated with this latest information, the FTC’s web site www.ftc.gov has a quick tutorial regarding the Rule. The link to the Stevens & Lee material follows:
http://www.stevenslee.com/news/HC/redflagalert_phs_1210.pdf
LICENSE CYCLE FROM
THE INSURANCE DEPARTMENT
The Insurance Department has asked PAHU and PHILLIPS ASSOCIATES to remind members and others in the Insurance Community that the licensing cycle has changed from two years from date of issue to two years from month of birth. This change was implemented last spring resulting in a change in licensing cycles. What this means is that the license expiration date on your printed license may not be accurate if your last renewal took place before April 2010. A link to the Department Notice follows:
Conversion to Birth Month Expiration Date
for Individual Insurance Producers & Title Agents-Update
DECEMBER 31 MARKS END
OF SURPLUS LINES 1609-X MORATORIUM
(This article is an
excerpted reprint of the PA Surplus Lines Association December 15, 2010
Bulletin to Surplus Lines licensees.)
Per PSLA Bulletin of February 22, 2010, the Pennsylvania Insurance
Department Directive 1609-X Filing Type, PSLA developed the process that became
known as the 1609-X filing type. This process allowed surplus lines licensees to
make filings that, for one reason or another, did not exist in PSLA’s database.
In addition, the newly created 1609-X filing type enabled surplus lines
licensees who never made filings in the first place to do so as required by law,
without penalty. The discovery of these issues was a result of the
reconciliation and examination process that has been in effect since June 2009.
In order to encourage surplus lines licensees to comply with these
procedures, the Pennsylvania Insurance Department instituted a
moratorium period during which surplus lines licensees have been permitted to
waive the late stamping fee by selecting an “Omissions” box. During this
moratorium period of March 1, 2010 through December 31, 2010 only the
applicable stamping fee was due. As
indicated in the February 22, 2010 Bulletin, the moratorium period ends
December 31, 2010. The availability of the “Omissions” box and the
option to waive the late stamping fee will be eliminated for these procedures.
In addition, the 1609-X filing type will only be available for use in certain
circumstances approved by the Department. The use of the 1609-X filing type is
a means to maintain database integrity where a violation has taken place.
FEDS ASK FOR INPUT ON
VALUE-BASED INSURANCE DESIGN re PREVENTIVE CARE
The US Department of Labor, US Department of Health and Human Services, and the IRS posted a request in the December 28 Federal Register pages 81554-81547 for information regarding Value-Based Design (VBID) plans relative to preventive care services mandated by the Patient Protection Affordable Care Act (PPACA), comments due by February 28, 2011. According to the Notice, VBID plans are described as including “provision of information and incentives for consumers that promote access to and use of higher value providers, treatments and services”. For more information please refer to:
http://webapps.dol.gov/FederalRegister/HtmlDisplay.aspx?DocId=24556&AgencyId=8