LEG-REG REVIEW
by Phillips Associates

[Includes/Links_Verticle.htm]

 

 For a printer friendly version - click here
LEG REG REVIEW
2004, First Issue
 
LEG REG REVIEW is a periodic newsletter produced by PHILLIPS ASSOCIATES, a professional lobbying and consultant firm based near the State Capitol.  It contains news on the Legislative and Regulatory scene in Pennsylvania that may be of use to insurance producers, companies, and interested parties.  Subscription information may be obtained by contacting PHILLIPS ASSOCIATES at
717/728-1217, Fax 717/728-1164 or E-mail to xenobun@aol.com.
 
CHANGES IN STORE FOR PA GENERAL ASSEMBLY
 
In addition to the open seat created by the movement of Republican John Gordner to the State Senate in Columbia County and a special election later this month, there are other major developments affecting the General Assembly.
 
First is the death of one of the best-liked House members, Roy Cornell (R) from Montgomery County.  Afflicted with cancer, he never let the disease affect his service to his constituents.  According to media reports, he was still fielding legislative phone calls from his deathbed.  His funeral service was Jan. 7. If you wish to tell his staff that you appreciated his life’s work as a public servant, please address your condolences to Lou Crocco, House Republican Policy Committee, Main Capitol, Harrisburg, PA 17120.  His death means that there may be some change in House committee leadership when his replacement as Policy Chair is named.
 
A second change is the announcement by Senator Hal Mowery (R-Cumberland) that he will not run for re-election.  As Chairman of the Public Health and Welfare Committee and an active member of the Senate Banking and Insurance Committee, he was an instrumental force behind almost every insurance-related piece of legislation to go through the legislature.  Most recently, he was involved in Senate passage of HB 888, the PACE and {PACE-Net) senior prescription expansion law.  In 2002, his biggest achievement was to force interested parties to the table to finally hammer out the details of Act 147, the new Producer Licensing Law.  If you want to send Senator Mowery a letter of appreciation, direct it to Hon. Hal Mowery, Main Capitol, Harrisburg, PA 17120.  His term runs until the end of 2004.  Mowery is a licensed insurance producer.
 
Another retirement is Allan Egolf (R-Perry) in a GOP district.  Democrat Jennifer Mann is running for the Democratic nomination for Auditor General, opening a House seat in a swing Lehigh County district.  Her primary opponent is Senator Jack Wagner Allegheny.
 
REP. HICKERNELL CIRCULATES PRODUCER LICENSE MEMO
 
As anticipated, Rep. Dave Hickernell (R-Lancaster) circulated a Dear Colleague memo to members of the PA House just before the recess asking them to co-sponsor a bill giving new insurance licensees the right to sell, solicit, or negotiate insurance risks while they are undergoing FBI criminal background checks.  The bill’s rationale is that these checks take a long time, thus depriving individuals and their agencies the ability to earn a livelihood before the license is finally granted.  A licensee determined to have a background problem could not sell, solicit, or negotiate pending an appeal.  The Insurance Department is expected to disagree with Rep. Hickernell’s proposal.
 
INSURANCE LEGISLATION TO NOTE
 
·        Governor Rendell signed HB 88 into law as Act 53 of 2003 on December 23.  The legislation restores the authority the Department of Labor & Industry needed to credential vocational assessment specialists.
·        Before recessing, a number of insurance bills were introduced:
-         HB 2234 (Schroder-R-Chester) makes Medical Malpractice punitive damages provable beyond a reasonable doubt and commits 80% of the recovery to the MCare Fund.
-         HB 2221 ((Cruz-D-Phila.) says that insurers failing to give volunteer firefighters or neighborhood watch participants a five percent homeowner’s insurance discount are in violation of the Unfair Insurance Practices Act..
 
INSURANCE DEPARTMENT AWARDS CONTRACT TO STUDY UNINSURED
 
The Insurance Department has selected Market Decisions LLC. from South Portland, Maine, to conduct a major study of the makeup of Pennsylvania’s uninsured population.  PA has a lower rate of uninsured (about 10%) than some surrounding states.  This report will be due in 2005.  Although it is early to begin submitting input into the study, an early point of conduct is the Department’s Director of the CHIP Pat Stromberg at 717/ 705-8053.
 
BUSINESS AGENDA ANNOUNCED JANUARY 6
 
On January 6, a group of Republican House members led by Dave Ross (Indiana) and Mike Turzai (Allegheny) unveiled a package of bills called the Keystone Manufacturing Initiative.  The bills included proposals to have a statute of repose for manufactured products after which the producer is not liable, to get the Capital Stock & Franchise Tax (CSFT) repeal back on track, to require a regulatory impact statement for small business.  Several; proposals had insurance implications as well. Turzai wants to eliminate the 90-day period for appeals made to total disability determinations after the 104 weeks specified in Worker’s Compensation law. 
 
Rep. John Payne (R-Dauphin) proposed Health Saving Account tax incentives for Pennsylvanians comparable to HSA treatment in the recently passed Medicare law.  Rep. Mark Mustio (Allegheny), a licensed insurance producer, put forth the CSFT bill.  Joining the ten or so legislators at the press conference were the PA Chamber of Commerce and Industry, PA Manufacturers Association, NFIB, Manufacturers Association of South Central PA, and others.
 
INDUSTRY NEWS
 
·        According to Business Wire, private companies interested in securing a Medicare endorsement of their prescription drug card program have until January 30, 2004 to submit their formal applications to HHS. 
 
·        The Hartford is acquiring C N A’s Group Benefits Division.
For a printer friendly version - click here
 

 

[Includes/Links.htm]

Website Designed by ASCII Technologies www.asciitechnologies.com