RULES AND REGULATIONS
INSURANCE DEPARTMENT
[31 PA. CODE CH. 151]
Continuing Care Providers
[34 Pa.B. 4598] The Insurance Department (Department) amends Chapter 151 (relating to continuing care providers).
Purpose
This final-form rulemaking updates and clarifies Chapter 151 with respect to the requirements for annual audits of financial statements filed by continuing care providers with the Department. This final-form rulemaking is a companion to Insurance Department Document #11-217 (see 34 Pa.B. 4591 (August 21, 2004)), which includes amendments to clarify the requirements in Chapter 147 (relating to annual audited insurers' financial report required) with respect to audits of nonprofit and for-profit continuing care providers. Chapter 151 was adopted in 1985 to implement the Continuing-Care Provider Registration and Disclosure Act (act) (40 P. S. §§ 3201--3225). Chapter 147 was last amended in 2001 and prescribes requirements for annual audits of all types of licensed insurers and continuing care providers. Therefore, the provisions in Chapter 151 regarding annual audits are outdated and not needed in addition to the requirements in Chapter 147.
Statutory Authority
This final-form rulemaking is adopted under the authority of the act.
Comments
Notice of proposed rulemaking was published at 34 Pa.B. 850 (February 14, 2004) with a 30-day public comment period.
No comments were received from the House Insurance Committee and the Senate Banking and Insurance Committee. No comments were received during the 30-day public comment period. During its regulatory review, the Independent Regulatory Review Commission (IRRC) did not submit comments to the Department. Therefore, no changes were made to the final-form rulemaking.
Affected Parties
Chapter 151 applies to continuing care providers licensed to transact business in this Commonwealth. The provisions regarding annual audits also apply to the certified public accountants retained to conduct audits of financial statements filed by continuing care providers with the Department.
Fiscal Impact
State Government
This final-form rulemaking updates and clarifies existing regulatory requirements. There will be no increase in costs to the Department as a result of this final-form rulemaking.
General Public
The final-form rulemaking has no fiscal impact on the general public.
Political Subdivisions
There will be no fiscal impact on political subdivisions as a result of the final-form rulemaking.
Private Sector
The updates in this final-form rulemaking will impose no significant costs on continuing care providers.
Paperwork
The final-form rulemaking will not impose additional paperwork on the Department or affected parties.
Effectiveness/Sunset Date
The final-form rulemaking will become effective upon final-form publication in the Pennsylvania Bulletin. The Department continues to monitor the effectiveness of regulations on a triennial basis; therefore, no sunset date has been assigned.
Contact Person
Questions or comments regarding the final-form rulemaking should be sent to Peter J. Salvatore, Regulatory Coordinator, Insurance Department, 1326 Strawberry Square, Harrisburg, PA 17120, (717) 787-4429, fax (717) 705-3873, psalvatore@state.pa.us.
Regulatory Review
Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on June 11, 2004, the Department submitted a copy of the notice of proposed rulemaking, published at 34 Pa.B. 850, to IRRC and the Chairpersons of the House Insurance Committee and the Senate Banking and Insurance Committee for review and comment.
Under section 5(c) of the Regulatory Review Act, IRRC and the Committees were provided with copies of the comments received during the public comment period, as well as other documents when requested. In preparing the final-form rulemaking, the Department has considered all comments from IRRC, the House and Senate Committees and the public.
Under section 5.1(j.2) of the Regulatory Review Act (71 P. S. § 745.5a(j.2)), on July 14, 2004, the final-form rulemaking was deemed approved by the House and Senate Committees. Under section 5g of the Regulatory Review Act, the final-form rulemaking was deemed approved by IRRC, effective July 14, 2004.
Findings
The Commissioner finds that:
(1) Public notice of intention to adopt this rulemaking as amended by this order has been given under sections 201 and 202 of the act of July 31, 1968 (P. L. 769, No. 240) (45 P. S. §§ 1201 and 1202) and the regulations thereunder, 1 Pa. Code §§ 7.1 and 7.2.
(2) The adoption of this rulemaking in the manner provided in this order is necessary and appropriate for the administration and enforcement of the authorizing statutes.
Order
The Commissioner, acting under the authorizing statutes, orders that:
(a) The regulations of the Department, 31 Pa. Code Chapter 151, are amended by amending § 151.7 to read as set forth at 34 Pa.B. 850.
(b) The Commissioner shall submit this order and 34 Pa.B. 850 to the Office of General Counsel and Office of Attorney General for approval as to form and legality as required by law.
(c) The Commissioner shall certify this order and 34 Pa.B. 850 and deposit them with the Legislative Reference Bureau as required by law.
(d) This order shall take effect upon final-form publication in the Pennsylvania Bulletin.
M. DIANE KOKEN,
Insurance Commissioner(Editor's Note: For the text of the order of the Independent Regulatory Review Commission, relating to this document, see 34 Pa.B. 4082 (July 31, 2004).)
Fiscal Note: Fiscal Note 11-220 remains valid for the final adoption of the subject regulation.
[Pa.B. Doc. No. 04-1545. Filed for public inspection August 20, 2004, 9:00 a.m.]
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