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PA Bulletin, Doc. No. 98-1442

RULES AND REGULATIONS

Title 31--INSURANCE

INSURANCE DEPARTMENT

[31 PA. CODE CH. 41]

Fraternal Beneficial Societies Administration

[28 Pa.B. 4530]

   The Insurance Department (Department) deletes § 41.1 (relating to extension of waiver of meetings) to read as set forth in Annex A. This rulemaking is made under the authority of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929 (71 P. S. §§ 66, 186, 411 and 412); and the Fraternal Benefit Societies Code (40 P. S. §§ 1142-101--1142-701). Section 41.1 sets forth requirements that must be met in a request for waiver or extension of a meeting of a domestic fraternal beneficial society.

Purpose

   The purpose of the rescission of § 41.1 is to eliminate an obsolete, unnecessary regulation. Section 41.1 was adopted May 18, 1943, under the authority of section 3 of the act of July 17, 1935 (P. L. 1092, No. 357) (Act 357) (40 P. S. § 1053) (now repealed). The regulation required that a request for waiver or extension of a meeting of a fraternal beneficial society shall be made by resolution of the board of directors or similar managing body. The resolution is required to contain six items of information listed in the regulation, including a certification that the request for waiver or extension has been approved by a majority of the subordinate lodges or bodies of the fraternal beneficial society.

   Act 357 which initially authorized the regulation was transferred to 15 P. S. §§ 8501--8543 and later repealed by section 5(a)(9) of the act of November 15, 1972 (P. L. 1063, No. 271) (Act 271), 40 Pa.C.S. §§ 6501--6701. Act 271 was subsequently replaced by the act of July 29, 1977 (P. L. 105, No. 38) (Act 38) (40 P. S. §§ 1141-101--1141-1001). Finally, Act 38 was replaced by section 701 of the Fraternal Benefit Societies Code (40 P. S. § 1142-701).

   Section 202 of the Fraternal Benefit Societies Code (40 P. S. § 1142-202) contains requirements relating to meetings of domestic fraternal benefit societies. The current statutory requirements relating to meetings of fraternal benefit societies are consistent with requirements relating to other types of insurers. However, § 41.1 contains additional requirements beyond those contained in current law, which requirements are not imposed on other types of insurers. Imposing special requirements on fraternal benefit societies regarding their meetings serves no compelling public interest. The statutory requirements are sufficient. Therefore, the regulation has been superseded by the existing statutory requirements in the Fraternal Benefit Societies Code (40 P. S. §§ 1142-101--1142-616) and are no longer needed.

Statutory Authority

   The regulation is being deleted under the authority of sections 206, 506, 1501 and 1502 of The Administrative Code of 1929; and the Fraternal Benefit Societies Code. The regulation was adopted under the authority of section 3 of Act 357.

Comments

   Notice of this rescission was published at 27 Pa.B. 3063 (June 28, 1997) as a proposed rulemaking with a 30-day public comment period.

   No comments were received from the standing committees, industry trade associations or other parties during the 30-day public comment period. On August 27, 1997, the Independent Regulatory Review Commission (IRRC) submitted notice to the Department that IRRC had no objections, comments or suggestions to offer on the deletion of the regulation.

Fiscal Impact

   The deletion of the regulation has no fiscal impact because of the obsolescence of the regulation.

Paperwork

   The deletion of the regulation will impose no additional paperwork requirements on the Department or fraternal benefit societies.

Affected Parties

   The deletion of the regulation affects fraternal benefit societies.

Effectiveness/Sunset Date

   This rulemaking will become effective upon final publication in the Pennsylvania Bulletin. Because the rulemaking rescinds an obsolete, unnecessary regulations, no sunset date has been assigned.

Contact Person

   Questions or comments regarding this final rulemaking may be addressed in writing to Peter J. Salvatore, Regulatory Coordinator, Office of Special Projects, 1326 Strawberry Square, Harrisburg, PA 17120, (717) 787-4429.

Regulatory Review

   Under section 5(a) of the Regulatory Review Act (71 P. S. § 745.5(a)), on June 18, 1997, the Department submitted a copy of the proposed rulemaking to IRRC, the Chairpersons of the House Insurance Committee and the Senate Banking and Insurance Committee. In addition to the submitted rulemaking, the Department has provided IRRC and the Committees with a copy of a detailed Regulatory Analysis Form prepared by the Department in compliance with Executive Order 1996-1, ''Regulatory Review and Promulgation.'' A copy of the material is available to the public upon request.

   The final rulemaking was deemed approved by the House and Senate Committees on August 2, 1998, in accordance with section 5.1(d) of the Regulatory Review Act (71 P. S. § 745.5a(d)). The amendment was deemed approved by IRRC on August 4, 1998, under section 5(g) of the Regulatory Review Act.

Findings

   The Insurance 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 regulation 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 Insurance Commissioner, acting under the authorizing statutes, orders that:

   (a)  The regulations of the Department, 31 Pa. Code, are amended by deleting § 41.1 to read as set forth in Annex A.

   (b)  The Commissioner shall submit this order and Annex A 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 Annex A and deposit them with the Legislative Reference Bureau as required by law.

   (d)  The regulation deleted by this order shall be abolished upon publication in the Pennsylvania Bulletin.

M. DIANE KOKEN,   
Insurance Commissioner

   Fiscal Note: Fiscal Note 11-153 remains valid for the final adoption of the subject regulation.

   (Editor's Note: For the text of the order of the Independent Regulatory Review Commission relating to this document, see 28 Pa.B. 4215 (August 22, 1998).)

Annex A

TITLE 31.  INSURANCE

Subpart D.  FRATERNAL BENEFICIAL SOCIETIES

CHAPTER 41.  (Reserved)

§ 41.1.  (Reserved).

[Pa.B. Doc. No. 98-1442. Filed for public inspection September 4, 1998, 9:00 a.m.]


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