NOTICES

INDEPENDENT REGULATORY REVIEW COMMISSION

Actions Taken by the Commission

Commissioners Present:  Robert J. Harbison, III, Vice-Chairperson; Arthur Coccodrilli; Irvin G. Zimmerman

[26 Pa.B. 1603]

Public meeting held
March 21, 1996

Department of Agriculture--Pseudorabies Disease; Doc. No. 2-91

Order

   On September 12, 1995, the Independent Regulatory Review Commission (Commission) received this proposed regulation from the Department of Agriculture (Department). It would amend Chapter 10 in 7 Pa. Code, relating to the control of pseudorabies disease, under the authority of section 1702 of The Administrative Code of 1929 (P. L. 177, No. 175) (71 P. S. § 442), section 3 of the act of April 17, 1929 (P. L. 533, No. 236) (3 P. S. § 343), and section 4 of the act of March 28, 1929 (P. L. 110) (3 P. S. § 374). The proposed regulation was published in the Pennsylvania Bulletin on September 23, 1995, with a 30-day public comment period. The final-form regulation was submitted to the Commission on February 23, 1996.

   The foregoing statutes authorize the Department to undertake measures to detect, prevent, contain and eradicate dangerous transmissible diseases among animals within Pennsylvania and to establish quarantines to help achieve these objectives. Pseudorabies is a contagious, infectious viral disease which affects animals but not humans. It poses a threat to the health of swine and the economic well being of the swine industry by reducing swine production profit as a result of reproductive failures, diminishing feed conversion efficiency and results in restrictions on the interstate movement of infected or exposed swine.

   This rulemaking is part of an industry-driven National effort already underway to eradicate pseudorabies in the United States by the year 2000. It is reflected in the United States Department of Agriculture Animal and Plant Health Inspection Service (USDA-APHIS) publication 91-55-018, State-Federal-Industry Program Standards for Pseudorabies Eradication (Federal Eradication Program).

   These rulemaking changes will also enable the Commonwealth to remain in compliance with the Federal Eradication Program, which has five stages or steps. Each affected state or region of the state is to:  (1) establish the procedural groundwork to eradicate pseudorabies disease; (2) identify and quarantine affected herds; (3) develop and implement herd clean up programs; (4) monitor the efficacy of herd clean up programs; and (5) monitor and maintain pseudorabies-free status, once attained.

   The Commonwealth is in Stage II (the control stage) and, to remain there, it must put in place the proposed regulatory authority to require herd clean up plans. To advance to Stage III of the program (the mandatory herd clean up phase), Pennsylvania must have authority to deal with a herd which does not clean up within a reasonable time.

   This rulemaking will provide a series of options to herd owners as part of eradicating pseudorabies disease including strict quarantine and, ultimately, mandatory herd depopulation. In making the decisions for each case, the Department endeavors to work cooperatively with the State Pseudorabies Advisory Committee (Advisory Committee), whose role is clarified under this rulemaking with regard to the Advisory Committee's functions, appointment and membership. The Department states that without these rulemaking changes, the Commonwealth will be powerless to effectively clean up pseudorabies disease-infected herds so that swine herds can be moved freely in interstate commerce. There are approximately 50 pseudorabies-exposed swine herds in the Commonwealth which have been quarantined.

   This rulemaking will affect owners, transporters, purchasers, dealers and livestock market personnel. The Department notes that swine illness and mortality from pseudorabies currently cost swine producers approximately $200,000 per year. Testing and vaccination costs run approximately $600,000 annually. These costs will largely be avoided, especially after the next 3 to 4 years, if mandatory provisions are put in place now to eradicate pseudorabies disease.

   The proposed amendments will cost the Department about $15,000 in Fiscal Year (FY) 1996, progressively decreasing to less than $4,000 in FY 1999. These costs will be for testing swine for pseudorabies and the possible incurrence of expenses relating to herd clean up costs.

   Even though this rulemaking has broad support in the swine producing industry, a number of commentators raised some concerns or suggested further changes to the version published for comment. Comments were submitted by the House Agriculture and Rural Affairs Committee, the Commission, and the following public commentators:  Federated Humane Societies of Pennsylvania; Hess Mills, Hog Department; Pennfield Corporation; Schick Farms; The Pennsylvania State University, Department of Dairy and Animal Science, College of Agricultural Sciences; The Pennsylvania State University, Department of Veterinary Science, College of Agricultural Sciences; and the Clark Stauffer Farm.

   In response to commentators' suggestions, the Department made a number of changes to improve the clarity of the final-form regulation. It amended section 10.21 (relating to eradication program requirements) by clarifying the procedural steps to be followed. It also amended, for improved clarity, section 10.26 (relating to Indemnity) and section 10.27 (relating to Advisory Committee). In the latter section, the Department added a new subsection relating to the Secretary of Agriculture's consultation with the Advisory Committee.

   The Department explained in its Comment and Response Document why it adopted or did not adopt the various changes proposed by commentators. The Department also clarified somewhat the cost impacts of the regulation on private sector owners of pseudorabies-infected swine herds. Under the available options, most herd owners will be able to test, depopulate and vaccinate their swine so as to complete herd clean up within the 3-year period provided under the Stage III plan. Doing so should keep costs from exceeding levels under the current regulation. The Department has acknowledged that herd owners may incur additional costs if, as the result of a herd clean up plan, the owner must completely depopulate the herd, disinfect the premises and leave the premises vacant for at least 30 days before repopulating it with a new herd.

   We have reviewed this regulation and find it to be in the public interest. The regulation will assist the Department in eradicating pseudorabies disease in its swine population and enable Pennsylvania to remain in compliance with the five-stage Federal Eradication Program. Herd owners will be afforded the opportunity to select the methodology and the time (up to 3 years from the approval of the clean up plan) for herd clean up. Although these regulatory amendments will result in additional costs for herd owners where pseudorabies-infected swine must be destroyed (in noncondemnation situations), the costs should be incurred only once. The number of pseudorabies-infected swine herds continues to decline dramatically and, with these regulatory changes in place, should be eliminated entirely by the year 2000.

Therefore, It Is Ordered That:

   1.  Regulation No. 2-91 from the Department of Agriculture, as submitted to the Commission on February 23, 1996, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

Commissioners Present:  Robert J. Harbison, III, Vice Chairperson; Arthur Coccodrilli; Irvin G. Zimmerman

Public meeting held
March 21, 1996

Department of Public Welfare--Income; Doc. No. 14-427

Order

   On February 21, 1996, the Independent Regulatory Review Commission (Commission) received this regulation from the Department of Public Welfare (DPW). This rulemaking would amend 55 Pa. Code Chapter 183 by changing the work/personal expense deductions for Aid to Families with Dependent Children (AFDC) and General Assistance (GA) recipients. The authority for this regulation is contained in section 201 of the Public Welfare Code (62 P. S. § 201). Notice of proposed rulemaking was omitted for this regulation; it will become effective upon publication in the Pennsylvania Bulletin.

   In October 1993 the Federal government changed the amount that could be deducted from earned income to determine eligibility and assistance amounts for the AFDC program. The Federal government increased the standard work/personal expense deduction for legal responsible relatives, parents of AFDC minor parents and step-parents from $75 a month to $90 a month.

   As a result of the Federal change, the DPW published a notice of rule change in the Pennsylvania Bulletin on March 5, 1994, that increased the income deduction from $75 to $90 for AFDC and GA recipients. The purpose of the notice of rule change was to ensure that the DPW provisions were consistent with those of the Federal government. Failure to make this revision could result in Federal sanctions.

   This rulemaking simply codifies the DPW's notice of rule change published March 5, 1994. The DPW has been using the new income deduction since 1993 and with this change is only making its regulations consistent with its procedures.

   An increase in the income deduction potentially allows more people to meet the income eligibility requirements and may increase the amount of assistance. The DPW states that the change resulted in a State fund cost of $22,000 in cash grants and $9,000 in Medical Assistance for fiscal year 1993-94. The DPW anticipates that in subsequent years the cost related to cash grants would increase to $30,000 and Medical Assistance costs would increase to $17,000 in fiscal year 1994-95 and by $2,000 increments every year thereafter.

   We have reviewed this regulation and find it to be in the public interest. The regulation is necessary for DPW's regulations to reflect its current procedures for determining income eligibility for the AFDC program and the GA program. However, we note the DPW took over 2 years to submit the regulation to make this simple codification. We believe the DPW needs to be more timely in updating its regulations so they are consistent with actual DPW procedures.

Therefore, It Is Ordered That:

   1.  Regulation No. 14-427 from the Department of Public Welfare, as submitted to the Commission on February 21, 1996, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

Commissioners Present:  Robert J. Harbison, III, Vice- Chairperson; Irvin G. Zimmerman; Arthur Coccodrilli

Public meeting held
March 21, 1996

Department of Public Welfare--Eligibility Provisions for the Healthy Horizons Program for the Elderly/Disabled; Doc. No. 14-433

Order

   On February 21, 1996, the Independent Regulatory Review Commission (Commission) received this regulation from the Department of Public Welfare (DPW). This rulemaking would amend 55 Pa. Code Chapter 140, Subchapter B. The authority for this regulation is found in sections 201(2) and 403(b) of the Public Welfare Code (62 P. S. §§ 201(2) and 403(b)), and in the Omnibus Budget Reconciliation Act of 1990 (OBRA '90), section 4501. Notice of proposed rulemaking was omitted for this regulation in accordance with sections 204(1) and 204(3) of the Commonwealth Documents Law (45 P. S. §§ 1204(1) and 1204(3)). The regulation will become effective upon publication in the Pennsylvania Bulletin.

   This rulemaking amends the Medical Assistance Healthy Horizons Medicare Cost-Sharing Program to conform to the mandates found in OBRA '90. Specifically, OBRA '90 mandated that effective January 1, 1993, states must pay Medicare Part B premiums for Specified Low-Income Medicare Beneficiaries (SLMBs) with incomes in excess of 100% but not more than 110%, of the Federal poverty income guidelines. In addition, the individual's financial resources, such as bank accounts, stocks or bonds, must not exceed twice the Supplemental Security Income resource standard. OBRA '90 further mandated that states must increase the income eligibility limit for SLMB benefits to 120% of the Federal poverty income guidelines effective January 1, 1995.

   DPW implemented the OBRA '90 mandates through two Notices of Rule Change (NORCs) published in the Pennsylvania Bulletin on January 23, 1993, and May 13, 1995. Therefore, the Healthy Horizons program has provided the SLMB benefit since 1993. The proposed regulation is intended to update DPW's regulations to reflect the income eligibility changes implemented through the 1993 and 1995 NORCs. According to DPW, failure to amend the existing regulations will jeopardize Federal funding.

   We have reviewed this regulation and find it to be in the public interest. The proposed regulation is a direct result of the Federal mandates found in OBRA '90. If the existing regulations are not revised to reflect the SLMB benefit, Pennsylvania may lose Federal funding. We note, however, that substantial time has passed since DPW published the two NORCs which implemented the OBRA '90 mandates. In the future, we encourage DPW to act more expeditiously in making revisions to regulations when required by changes in Federal law.

Therefore, It Is Ordered That:

   1.  Regulation No. 14-433 from the Department of Public Welfare, as submitted to the Commission on February 21, 1996, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

Commissioners Present:  Robert J. Harbison, III, Vice- Chairperson; Arthur Coccodrilli; Irvin G. Zimmerman

Public meeting held
March 21, 1996

Insurance Department--Automatic Subscriptions to the Pennsylvania Code and Pennsylvania Bulletin; Doc. No. 11-127

Order

   On February 27, 1996, the Independent Regulatory Review Commission (Commission) received this regulation from the Insurance Department (Insurance). This rulemaking will amend 31 Pa. Code §§ 149.1--149.4 and 151.14(e). The authority for this regulation is found in 45 Pa.C.S. §§ 502, 503, 729, 730 and 731, and sections of 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. §§ 66, 411 and 412). Notice of proposed rulemaking was omitted for this regulation. It will become effective upon publication in the Pennsylvania Bulletin.

   This final regulation is a simple, straight-forward, housekeeping measure. It deletes existing provisions which were rendered obsolete by Regulation No. 53-8 from the Joint Committee on Documents (JCD). The Commission approved the JCD's regulation on July 6, 1995. The JCD rule terminated the automatic subscription provisions relating to Insurance. Before this termination, entities licensed by Insurance received automatic subscriptions to the Pennsylvania Code and Pennsylvania Bulletin. The termination of the JCD's provisions was effective retroactively to July 1, 1995.

   Insurance states that there is no fiscal impact from the repeal of the sections related to the automatic subscriptions. The automatic subscriptions were not free; Insurance billed subscribers for the costs. Insurance companies and other entities regulated by Insurance are now able to continue subscriptions on a voluntary basis by dealing directly with the publisher of the Pennsylvania Code and Pennsylvania Bulletin.

   We have reviewed this regulation and find it to be in the public interest. This regulation deletes existing sections relating to the procedures for applying for exceptions to automatic subscriptions and assessing the entities for the costs of the subscriptions. Given the JCD's action, the existing sections are no longer necessary.

Therefore, It Is Ordered That:

   1.  Regulation No. 11-127 from the Insurance Department, as submitted to the Commission on February 27, 1996, is approved; and

   2.  The Commission will transmit a copy of this Order to the Legislative Reference Bureau.

JOHN R. MCGINLEY, Jr.,   
Chairperson

[Pa.B. Doc. No. 96-552. Filed for public inspection April 5, 1996, 9:00 a.m.]

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