LEG REG REVIEW
2011, 20th Issue June 13, 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 Pennsylvania
that may be of interest to the Insurance and Business Communities. It is a free member benefit for those who are
members of the Pennsylvania Association of Health Underwriters (PAHU) or Manufacturers Association of South Central
PA (MASCPA). Subscription information may be obtained by contacting PHILLIPS ASSOCIATES at 717/728-1217 FAX
717/728-1164 or e-mail to xenobun@aol.com. Please email jtrout2792@aol.com supplying both your name and e-mail
address if you wish to be removed from this list.
SESSION DAYS in JUNE
House and Senate meet:
13, 14, 15, 20, 21, 22, 23, 24, 27, 28, 29, 30
HOUSE, SENATE COMMITTEES CONSIDER SURPLUS LINES
Last week, both the House Insurance Committee and the Senate Banking & Insurance Committee moved
comparable pieces of legislation designed to bring PA into July 1 compliance with the provision of last year’s
federal Dodd-Frank Act dealing with Surplus & Excess insurance lines. Of core interest is how surplus lines
premium taxes are paid. This has long an issue for surplus lines licensees who write an account covering several
states and have to pay the premium tax to each state even though the basis of the taxation is inconsistent. The
Non-Admitted and Reinsurance Act of 2010 is designed to reduce conflicts between states applying to a surplus
lines insurance transaction which involves a business in more than one state. It says that the business’ home
state provides the basis for taxation. It also stipulates that other states may not require a non-resident license for
the surplus lines licensee in the business client’s home state. The House Insurance Committee votes on House
Bills 1599 and 1601 (Godshall-R-Montgomery) took place June 8 while the Senate Banking & Insurance
Committee votes on SB 1096 and 1097 (D. White-R-Indiana) tool place June 7.
OTHER SENATE COMMITTEE WORK
Other Senate Banking & Insurance Committee action included movement of
 Senate Bill 388 (Vance-R-Cumberland) amending the Dental Law providing for proof of professional
liability insurance as a condition of licensure. SB 388 language calls for $1 million per occurrence, $3
million aggregate.
 Senate Bill 896 (Stack-D-Phila.) provides for English as the controlling language in any dispute
regarding insurance where non-English translation was involved.
SENATE PASSES DRIVER BILL
The Senate passed Senate Bill 314 (Tomlinson-R-Bucks) by a vote of 41-8 to prohibit texting while driving for
all drivers. Also prohibited is driver Internet use and driver use of hand-held cell phones. Junior drivers are
also impacted by increasing the numbers of required behind the wheel hours and limits the number of
passengers. It is roughly equivalent to Rep. Katherine Watson’s (R-Bucks) House Bill 9 re numbers of
passengers which had previously passed the House and her HB 8 (cell phones) which is currently in the House
Appropriations Committee.
UC BILL READIED FOR HOUSE ACTION
Senate Bill 1030 (Gordner-R-Columbia) is being readied for a House vote after movement through the House
Labor & Industry Committee June 7. Among other things, the bill gives Pennsylvanians on Unemployment
Compensation another 13-week life line and tightens up eligibility by requiring a job search. It is less
comprehensive than Rep. Scott Perry’s (R-York) HB 916 although some of the Perry reforms were grafted into
SB 1030.
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WORKS IN PROGRESS…
 Changes in Adjuster Law are moving with the House taking HB 424 (Godshall-R-Montgomery) off the
table (getting ready for a vote). It had earlier passed the House Insurance Committee May 24.
 Next week the House Health Committee is having a hearing on managed care programs for those on
Medicaid. This week (June 15) the committee will consider Senate Bill 5 (Erickson-R-Chester) which
creates a new state program to help support walk-in clinics for the poor.
 On June 14, the Senate Labor & Industry Committee takes up House Bill 440 (Mustio-R-Allegheny)
which authorizes insurers including the State Workers Insurance Fund (SWIF) to provide on a voluntary
basis Workers ’ Compensation insurance to sole proprietors, partners of a partnership or members of a
limited liability company.
EXCHANGE HEARING
On June 14, the House Insurance Committee will hold its second hearing on PPACA Health Insurance
Exchanges. Testifying this week will be the Washington, DC-based Heritage Foundation, a conservative think
tank. Earlier the committee heard testimony from the National Association of Insurance Commissioners
(NAIC).
REGULATORY UPDATE
 Atlantic Employers Insurance Company, a nonadmitted insurance company based in New Jersey is
seeking to merge into ACE.
 PA Health Care Cost Containment Council (PHC4) released Cardiac Surgery in PA 2008-2009 with
specific hospital information on procedures and mortality rates. Details: www.phc4.org
 Although not specific to insurance, the following may be relevant to many given insurance agents’
involvement in volunteer fire activities. The PA Emergency Management Agency (PEMA) has
provided a release date for the application for volunteer fire companies and ambulance programs of
September 6, 2011. (www.osfc.state.pa.us) Deadline is October 21 for the actual grant application.
MEDICAID EXPANSION RESOLUTION INTRODUCED
Rep. Gordon Denlinger (R-Lancaster) introduced House Resolution 273 to urge Congress to repeal the part of
the Patient Protection Affordable Care Act (PPACA) that expands Medicaid eligibility to 133% of the Federal
Poverty Level. According to the resolution, the expansion means a 25% increase in the numbers of people
receiving taxpayer-paid medical care and a resulting budget strain on the Commonwealth of $2.31 billion from
2014-19. Referred to the House Finance Committee, the measure is supported by PAHU.
NEW ADDITION TO PHILLIPS ASSOCIATES
Janel Rorick is a third-year Juris Doctor candidate at the Penn State University Dickinson School of Law in
Carlisle, PA. She received her BA in Law & Policy in May 2010 from Dickinson with a 3.74 GPA. Janel is
enrolled in an intense academic program called 3/3 which means finishing her college and law school work in
six years instead of the usual seven. Previous professional work includes Legal Extern in the Office of Chief
Counsel DCNR, Intern at Wilkes-Barre based law firm of Vinsko & Associates and Intern at the Luzerne
County District Attorney's Office.
IN PASSING…
Leg Reg Review has learned that former Senator Albert ‘Bud’ Belan passed away at the age of 81.
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