[27 Pa.B. 3294]

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Regulation Being Considered	Proposed Date	Need and Legal Basis for Action	Agency
	for Promulgation		Contact
General Explanation and Issuance of Certificate 61 Pa. Code §§ 2.1 and 2.3	August 1997, as final.	In 1988, the Department adopted numerous amendments to Chapter 2. Employment Incentive Payment. Since that time, there have been changes to various Federal programs that have prompted the amendment of 2.3 (relating to issuance of certificate (Form REV-1601)). This amendment conforms the regulation to be consistent with those Federal programs. Section 2.3(b) is amended to extend the time period in which an employer may request a Program Certificate from the Department of Public Welfare from the date the employed welfare recipient begins work to no later than 21 days following the actual date the employed welfare recipient began work.	Douglas A. Berguson 717-787-1382
Lawn Care Services 61 Pa. Code §§ 55.6 and 60.2	September 1997, as final.	This regulation sets forth the Department s interpretation of 72 P. S. §§ 7201(k)(17), (o)(15) and (jj) relating to the taxation of lawn care services. Currently the Department s interpretation is set forth as a pronouncement and codified at 61 Pa. Code § 60.2 (relating to lawn care services). Department has concluded that its policy relating to this service should be set forth as a regulation. Therefore, In addition to proposing to add § 55.6 (relating to lawn care services), the Department is also proposing to delete the pronouncement set forth at § 60.2.	Douglas A. Berguson, 717-787-1382
Local Tax 61 Pa. Code §§ 60.16, and 95.1 --95.303	January 1998, as proposed.	This regulation sets forth the Department s interpretation of sections 501--509 of the Pennsylvania Intergovernmental Cooperation Authority Act for Cities of the First Class (53 P. S. §§ 12720.501--12720.509), sections 3150-B--3157-B of the Second Class County Code (16 P. S. §§ 6150-B--6157-B) and section 201-A of the Tax Reform Code of 1971 (72 P. S. § 7201-A). Currently the Department s interpretation is set forth as a pronouncement and codified at 61 Pa. Code § 60.16 (relating to local sales, use and hotel occupancy tax). The Department has concluded that its policy relating to local sales, use and hotel occupancy tax should be set forth as a regulation. Therefore, in addition to proposing to add Chapter 95. Local Tax, the Department is also proposing to delete the pronouncement set forth at § 60.16.	Douglas A. Berguson, 717-787-1382
Maintaining a Place of Business Within this Commonwealth 61 Pa. Code § 56.1	January 1998, as proposed.	Section 56.1 is amended to make it more consistent with the statutory definition of ''maintaining a place of business in this Commonwealth'' set forth at 72 P. S. § 7201(b) including the amendment set forth in Act 1995-21 (72 P. S. § 7201(b)(4)) regarding what the term does not include.	Douglas A. Berguson, 717-787-1382
Passenger Car Rental Tax 61 Pa. Code §§ 9.14 and 47.20	October 1997, as final.	This regulation sets forth the Department s interpretation of Article XVI-A Passenger Car Rental Tax (72 P. S. §§ 8601-A--8604-A). Currently the Department s interpretation is set forth as a pronouncement and codified at § 9.14 (relating to passenger car rental tax). The Department has concluded that its policy relating to Article XVI-A should be set forth as a regulation. Therefore, in addition to proposing to add § 47.20 (relating to passenger car rental tax), the Department is also proposing to delete the pronouncement set forth at § 9.14.	Douglas A. Berguson, 717-787-1382
Public Transportation Assistance Fund Taxes and Fees 61 Pa. Code §§ 9.4 and 47.19	October 1997, as final.	This regulation sets forth the Department s interpretation of 72 P. S. § 9301 relating to public transportation assistance fund taxes and fees. Currently the Department s interpretation is set forth as a pronouncement and codified at § 9.4 (relating to public transportation assistance fund taxes and fees). The Department has concluded that its policy relating to public transportation assistance fund taxes and fees should be set forth as a regulation. Therefore, in addition to proposing to add § 47.19 (relating to public transportation assistance fund taxes and fees), the Department is also proposing to delete the pronouncement set forth at § 9.4.	Douglas A. Berguson, 717-787-1382
Return of Information as to Payment In Excess of $10 61 Pa. Code § 117.18	January 1998, as final.	This regulation amends § 117.18 (relating to return of information as to payment in excess of $10) to clarify how a Pennsylvania information return may be made by a regulated investment company. In March, 1996, the Department adopted a final-form regulation that amended § 117.18 in addition to other personal income tax regulatory sections. During the final stages of the adoption process, a comment was made regarding the information return made by a regulated investment company. To avoid delay in adoption of the entire regulatory package, the Department agreed to amend the section In a separate regulation.	Douglas A. Berguson, 717-787-1382
Telecommunications Service 61 Pa. Code §§ 31.1, 31.24, 48.1 and 55.8	October 1997, as proposed.	This regulation sets forth the Department s interpretation of the 1991 statutory changes set forth in section 201(m), 202(c) and 204(5) of the Tax Reform Code of 1971 (72 P. S. §§ 7201(m), 7202(c) and 7204(5)) regarding telephone, telegraph and telecommunications services.	Douglas A. Berguson, 717-787-1382
Sales and Use Tax Amendments 61 Pa. Code §§ 7.3, 7.6, 31.4, 31.5, 31.7, 31.26, 32.1--32.5, 32.21, 32.22, 32.31--32.37, 33.1, 33.2, 33.4, 42.1, 42.3, 44.2, 45.1, 46.9, 47.18 and 58.13	October 1997, as proposed.	The Department is proposing numerous amendments to the Pennsylvania Code, Title 61. This regulatory package is the result, In part, of a comprehensive review of sales and use tax regulations in light of legislative changes from 1991 to the present.	Douglas A. Berguson, 717-787-1382
SECURITIES COMMISSION
Institutional Investor 64 PA. Code § 102.111	October 1997, as final.	This regulation would be amended to include Qualified Institutional Buyer (QIB) under SEC Rule 144A as an institutional investor under the 1972 Act. Under Rule 144A, a QIB is an organization or regulated person who, acting for its own account or the accounts of other qualified institutional buyers, owns and invests on a discretionary basis in the aggregate at least $100 million in securities of issuers that are not affiliated with such person. Not being uniform with the SEC definition requires issuers selling only to institutional buyers to incur the cost of a Blue Sky legal memo for Pennsylvania to determine where PA differs from the SEC definition. Other states have included Rule 144A QIBs in their definition of institutional investor.	G. Philip Rutledge (717) 783-5130
Securities issued by broker-dealers 64 PA. Code § 202.080	October 1997, as final.	This regulation would repeal the requirement to file Form 202-H with the Commission for offers and sales of securities of a registered broker-dealer to officers, partners or employees. In FY95-96, the Commission received 12 filings under this section. Staff performs only a cursory review of the form and does not believe that the filing requirement is necessary or appropriate for the protection of investors. As there is no filing fee for Form 202-H, there is no impact on fee revenues.	G. Philip Rutledge (717) 783-5130
World class issuer exemption 64 PA. Code § 202.094	October 1997, as final.	Currently, many large, multinational corporations domiciled outside of the US cannot take advantage of exemptions form registration under the Act because their securities are not listed on a US stock exchange or they are not reporting companies to the Securities and Exchange Commission (''SEC''). Section 202.094 will designate securities issued by large, multinational corporations that do not have securities listed on a US securities exchange as exempt from the registration provisions of the Act. This will provide parity with securities of large US corporations whose securities are exempt under Section 202(f) of the Act.	G. Philip Rutledge (717) 783-5130
Isolated Transaction Exemption 64 PA. Code § 203.189	October 1997, as final.	This regulation would be amended to (1) delete the requirement that the issuer must be organized under PA law or have its principal place of business in PA and (2) expand the number of sales to be made to Accredited Investors. The Commission has received numerous inquiries concerning the availability of this exemption from issuers that anticipate only one or two sales in PA, generally to Accredited Investors. In most cases, however, the exemption was not available because the issuer was not a PA Issuer. For a three month period in 1996, the Commission received 42 inquiries from non-PA Issuers, 33 of which indicated that sales would be made to only one or two Accredited Investors in PA. On an annualized basis, this would mean that approximately 132 issuers would not have to make a filing with the Commission. Because no filing would need be made, it is estimated that there would be an annual General Fund fee revenue loss of approximately $20,000.	G. Philip Rutledge (717) 783-5130
Offers on the Internet 64 PA. Code § 203.189.1	October 1997, as final.	This regulation will codify the Commission's existing Internet order granting an exemption for offers of securities which are made on the Internet but are not intended to be sold to PA residents. This order has served as a nationwide model for dealing with jurisdictional issues concerning Internet offerings at the state level and has been advocated by SEC Commissioner Wallman for adoption at the federal level.	G. Philip Rutledge (717) 783-5130
Waivers for Accredited Investors 64 PA. Code § 204.012	October 1997, as final.	This regulation would waive the offer and sale numerical limitations in Sections 203(d) and (e) of the 1972 Act and the general solicitation prohibition in Section 203(d) of the 1972 Act for Accredited Investors. This regulation is being proposed in light of new systems being developed and receiving certain regulatory approvals from the SEC that facilitate the communication of securities offerings on the Internet to Accredited Investors (e.g. ACE-Net) and to provide regulatory guidance for those issuers relying upon the Commission's Internet Order (wherein the Commission took the position that Internet offers constituted general solicitation under the 1972 Act) that subsequently may wish to make sales in PA to Accredited Investors.	G. Philip Rutledge (717) 783-5130
Trust Indenture Requirements 64 PA. Code § 207.081	October 1997, as final.	This amendment would repeal the requirement that all debt securities to be registered by qualification under Section 206 of the 1972 Act be required to comply with the Federal Trust Indenture Act of 1939.	G. Philip Rutledge (717) 783-5130
Subscription Agreements 64 PA. Code § 207.091	October 1997, as final.	This amendment would repeal that the portion of the regulation requiring intrastate offerings under Section 206 to use a specific subscription form. The Commission has not enforced this provision and believes that issuers should have the ability to fashion their own subscription agreements within the appropriate constraints of the anti-fraud provisions of the 1972 Act.	G. Philip Rutledge (717) 783-5130
Quarterly Reports of the Progress of a Registered Offering 64 PA. Code § 207.110	October 1997, as final.	This amendment would repeal the requirement to file Form 207-K. The Commission received 108 207-K reports during FY95-96 from approximately 27 issuers filing under Section 206, of which 20 were non-profit organizations selling debt securities. These organizations generally renew their registration each year and information concerning sales during the prior year are captured by Item 5 of Form 206. Information filed on Form 207-K has not been material to the Commission's enforcement efforts and it believes that this requirement is a regulatory burden which does not fulfill a sufficient corresponding investor protection objective.	G. Philip Rutledge (717) 783-5130
Notice to Purchasers under Section 207(m) 64 PA. Code § 207.130	December 1997, as proposed.	This amendment would implement provisions of Act 126 of 1994. Act 126 of 1994 amended Section 207(m) and deleted its application to transactions under Sections 203(e) and (r) of the 1972 Act while also making the furnishing of a notice reciting the withdrawal rights under Section 207(m) a condition of the exemption in Section 203(d). Act 126 also gave the Commission explicit authority to adopt a regulation specifying the form and manner in which a 207(m) notice has to be given.	G. Philip Rutledge (717) 783-5130
Required Records; Report on Sales of Securities and Use of Proceeds 64 PA. Code § 209.010	October 1997, as final.	This amendment would repeal reporting requirements on Form 209 for non-investment companies. Last year, the Commission received 1,244 Form 209 reports from non-investment companies. The Commission expends an enormous amount of time, computer resources and postage to insure timely filing of Form 209. Aggregate offerings of $100,000 or less under Section 203(d) have been exempt from filing Form 209 for a number of years without any adverse effect. The information supplied by Form 209 does not contribute materially to the Commission's enforcement efforts and often is submitted in such form where it cannot be compared meaningfully to the original offering document. The few instances where oversales have been detected can be addressed through an adjustment to the fee schedule. The Commission believes the Form 209 filing requirement for non-investment companies is a regulatory burden which does not fulfill a sufficient corresponding investor protection objective.	G. Philip Rutledge (717) 783-5130
Canadian broker-dealer exempt 64 PA. Code § 302.065	October 1997, as final.	This new regulation will exempt Canadian broker-dealers and agents that are licensed and in good standing in Canada from the broker-dealer and agent registration provisions of the Act if the Canadian broker-dealer and agent effects transactions only with persons from Canada who are pre-existing clients and who temporarily are present in Pennsylvania when the transactions occur.	G. Philip Rutledge (717) 783-5130
Financial Reports to Security Holders 64 PA. Code § 606.011	October 1997, as final.	This amendment would delete the regulation's application to transactions effected under Sections 203(o)(ii), (q) and (r) and exclude from the regulation's requirements companies that are subject to the reporting requirements of the Securities Exchange Act of 1934 under Sections 13 of 15(d) thereof that actually have made a filing under that act. Deleting application of the provisions of this section to Sections 203(o)(ii), (q) and (r) would parallel changes to the 1972 Act which removed the application of the Two Business Day Right of Withdrawal to transactions effected under those sections. The transactions affected by this amendment are not those that require heightened regulatory oversight. A further amendment would address a problem that has arisen in using the definition of ''reporting company'' in the 1972 Act. This section of the regulation always has stood for the proposition that a company filing Forms 10-Q and 10-K with the SEC would not have to provide additional financial information to PA shareholders. The Division would retain the concept but change the wording.	G. Philip Rutledge (717) 783-5130
Amendment Form 64 PA. Code § 609.011	October 1997, as final.	This amendment would delete the requirement to use a specific form for amending filings made with the Commission. The form should be deleted because many issuers do not use it and the Commission has not enforced its use. The amendment would recast the regulation as a general requirement to file material changes with respect to previously filed offering documents and would obligate issuers to identify the form or filing being amended and provide a copy which is marked to show changes. Also, the Commission would propose including a sunset date that no amendments need be filed with respect to offerings for which the last sale in the Commonwealth was made more than five years ago, which time period equals the criminal statute of limitations in Section 511.	G. Philip Rutledge (717) 783-5130
STATE
Corporations Bureau	December 1997, as proposed.	The Corporations Bureau will propose deleting references by name to the Governor, Secretary of the Commonwealth and Director of the Corporation Bureau on its sample filing forms promulgated by the Department pursuant to 15 Pa. C. S.§ 133 because changes in administration render such references obsolete. It should be noted that under Section 133 sample filing forms are not considered to be agency regulations for purposes of the Administrative Code, the Commonwealth Attorneys Act or the Regulatory Review Act but shall be subject to opportunity of public comment required under Section 201 of the Commonwealth Documents Law.	Michael Frick, (717) 787-1057
Bureau of Commissions, Elections and Legislation	Fall 1997, as final.	The Department proposes comprehensive revisions to regulations found at 4 Pa. Code to eliminate obsolete provisions and reflect recent statutory changes. The amendments will be proposed pursuant to the Pennsylvania Voter Registration Act (25 P. S. § 961.301), and the Pennsylvania Election Code (25 P. S. § 2601 et seq ).	Richard Filling, (717) 787-5280
State Athletic Commission	Spring 1997, as proposed.	The State Athletic Commission (SAC) proposes to amend 58 Pa. Code Chapter 21 to require professional boxers and kickboxers to submit, as part of their annual application for licensure, a report from a licensed medical laboratory that the applicant has tested negative for HIV.	Greg Sirb (717) 787-5720
	Fall 1997, as proposed.	The SAC also proposes to amend 58 Pa. Code Chapters 3 and 5 to: 1) clarify that the senior SAC official administering a professional boxing event has control of the space and seating adjacent to the ring, and 2) establish SAC credentials that would give a predetermined number of individuals admission to professional boxing events. These proposals will be part of omnibus revisions to 58 Pa. Code , Part I to bring the SAC's regulations into compliance with both the revisions to the Pennsylvania Athletic Code as well as changes in the SAC's procedures. The regulations will be promulgated pursuant to the Pennsylvania Athletic Code (5 Pa.C.S.A. § 101 et. seq).
Navigation Commission for the Delaware River and Its Navigable Tributaries	Fall 1997, as proposed.	The Navigation Commission will propose comprehensive revisions to 13 Pa. Code Chapters 201--209 to enhance navigational safety, eliminate obsolete regulations and reflect statutory changes pursuant to 55 P. S. § 31 and 71 P. S. § 670.2(4).	Brian Gottlieb, (717) 787-6458
State Board of Auctioneer Examiners Absolute Auctions-- 49 Pa. Code § 1.41.	No publication anticipated in next 6 months.	The proposal would identify those auctions in which the term ''absolute auction'' (an auction of sale to the highest bidder without any reserve limitation or conditions) may be used in auctioneer advertising and when conducting an auction. The regulation will protect the consumer at auctions by making false or deceptive advertising or auctioneering grounds for discipline. The Board has authority to regulate the conduct of licensed auctioneers under Section 32 of the Auctioneer and Auction Licensing Act, Act of December 22, 1983, P. L. 327, 63 P. S. § 734.32.	Linda Dinger (717) 783-3397
Approved Course of Study-- 49 Pa. Code § 1.11.	No publication anticipated in next 6 months.	The proposal would establish standards for school course practicum work in auctioneering. The regulation will permit the Board to verify the minimum level of education the Board believes necessary for licensure. Legal authority for the regulation is Section 32, 63 P. S. § 734.32.
Sponsorship of Apprentices--49 Pa. Code § 1.31.	No publication anticipated in next 6 months.	The proposal would require that sponsors provide minimum training of apprentices and document supervision of apprentices whom they employ. The regulation is needed to provide objective standards for sponsors to follow in training and supervising apprentices whom they employ and whose apprenticeship qualifies them for licensure. Legal authority for the regulation is Section 32, 63 P. S. § 734.32.
State Board of Barber Examiners 49 Pa. Code, Chapter 3.	Fall 1998, as proposed.	Revision of all regulations. Updating all regulations and deleting antiquated provisions. Statutory authority: 63 P. S. § 566.4(b).	Sara Sulpizio (717) 783-3402
State Board of Chiropractic Sexual Misconduct-- 49 Pa. Code § 5.54.	Fall 1997, as proposed.	Through the monitoring of its disciplinary process, including consumer complaints and disciplinary actions, the Board believes that enforcement standards are needed to notify licensees of acts which the Board deems unprofessional. The Board has authority to adopt regulations necessary to carry out the act under Section 302(3) of the Chiropractic Practice Act, Act of December 16, 1986, P. L. 1646, as amended, 63 P. S. § 625.302(3).	Deb Smith (717) 783-7156
Peer Review-- 49 Pa. Code § 5.55.	No publication anticipated in next 6 months.	The proposal would regulate standards for review of chiropractic treatment. The proposal would assure that when chiropractic diagnosis and treatment are subject to utilization review by chiropractors, appropriate standards will be employed. The statutory authority for the regulation is Section 302(3) of the Act, 63 P. S. § 625.302(3).
Volunteer License-- 49 Pa. Code, Chapter 5.	Summer 1997, as proposed.	This regulation governs the volunteer license category. It establishes qualifications for placing a license on volunteer status; criteria under which a licensee who is retired and whose license became inactive prior to February 3, 1997, may obtain a volunteer license; procedures under which a volunteer license holder may return to active practice. This regulation is required by the Volunteer Health Services Act, Act 141 of 1996. Deb Smith (717) 783-7156
State Board of Cosmetology Disinfection, Equipment and Supplies-- 49 Pa. Code §§ 7.71, 7.71a, 7.71b, 7.105 and 7.114.	Fall 1997, as proposed.	These regulations reflect updated changes in industry standards for disinfecting and sterilizing necessary equipment required to be available and in use in cosmetology shops. Minimum safety and sanitation standards in cosmetology shops are authorized under Section 11 of the Act of May 3, 1933, P. L. 242, as amended, 63 P. S. § 517.	Sara Sulpizio (717) 783-7130
State Architects Licensure Board General Revisions-- 49 Pa. Code §§ 9.1-9.211.	January 1998, as final.	The amendments will delete unnecessary and outmoded provisions and revise language concerning requirements for licensure, professional conduct and board procedures. The regulations provide necessary guidance to applicants for licensure in Pennsylvania and will notify licensees of disciplinary process and procedures. Legal authority: Section 6(a) of the Architects Licensure Law, 63 P. S. § 34.6(a).	Linda Dinger (717) 783-3398

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