1896 Notice of comments issued

INDEPENDENT REGULATORY REVIEW COMMISSION

Notice of Comments Issued

[31 Pa.B. 5855]

   Section 5(d) of the Regulatory Review Act (71 P. S. § 745.5(d)) provides that the designated standing committees may issue comments within 20 days of the close of the public comment period, and the Independent Regulatory Review Commission (Commission) may issue comments within 10 days of the close of the committee comment period. The Commission comments are based upon the criteria contained in secion 5.1(h) and (i) of the Regulatory Review Act (71 P. S. § 745.5a(h) and (i)).

   The Commission has issued comments on the following proposed regulations. The agency must consider these comments in preparing the final-form regulation. The final-form regulations must be submitted by the dates indicated.

		Final-Form
		Submission
Reg No.	Agency/Title	Issued	Deadline
50-116	Pennsylvania Securities    Commission	10/04/01	09/04/03
	National Securities          Markets
	Improvement Act                of 1996 Amendment
(31 Pa.B. 4174 (August 4, 2001))
14-471	Department of Public    Welfare	10/04/01	09/04/03
	Income
(31 Pa.B. 4172 (August 4, 2001))

Pennsylvania Securities Commission
Regulation No. 50-116

National Securities Markets Improvement
Act of 1996 Amendments

October 4, 2001

   We submit for consideration the following objections and recommendations regarding this regulation. Each objection or recommendation includes a reference to the criteria in the Regulatory Review Act (71 P. S. § 745.5a(h) and (i)) which have not been met. The Pennsylvania Securities Commission (PSC) must respond to these Comments when it submits the final-form regulation. If the final-form regulation is not delivered by September 4, 2003, the regulation will be deemed withdrawn.

Section 304.041.  Examinations of broker-dealers and investment advisers.--Clarity.

   This is a new section added to existing regulations. It instructs broker-dealers and investment advisers to honor all requests of PSC staff ''to have physical access to all areas of the office which is the subject of the examination and, upon request, shall permit them to review and examine files in the physical place where the files are routinely kept.'' It is our understanding that the term ''files'' includes books, records, accounts and electronic files. In order to avoid any ambiguity, the term ''files'' should be defined. An alternative could be to use a descriptive phrase such as ''files including books, records, accounts and electronic files.''

Department of Public Welfare
Regulation No. 14-471

Income

October 4, 2001

   We submit for consideration the following objections and recommendations regarding this regulation. Each objection or recommendation includes a reference to the criteria in the Regulatory Review Act (71 P. S. § 745.5a(h) and (i)) which have not been met. The Department of Public Welfare must respond to these Comments when it submits the final-form regulation. If the final-form regulation is not delivered by September 4, 2003, the regulation will be deemed withdrawn.

1.  Section 183.2. Definitions.--Clarity.

Lump sum income

   The term ''lump sum income'' is used in the regulation but is not defined. However, the regulation repeatedly uses the term ''lump sum income.'' We have two concerns.

   First, since ''lump sum income'' is not defined, it is unclear what would specifically be considered ''lump sum income.'' For example, if a person receives an annuity 1 month of a year, is that considered a lump sum for the month of receipt or a resource? Also, does lump sum income occur at actual receipt of the income or the deemed receipt of income? Could multiple disbursements of a single amount be treated as lump sum income?

   Second, it is not clear how the regulation will be applied to income. The Preamble states insurance payments are lump sum income. However, how is this distinguished from an insurance reimbursement? Also, how would an inheritance with limitations on spending affect a person's eligibility?

2.  Section 183.105. Increases in income.--Clarity.

Subsection (i)

   The last sentence in this subsection states, ''The lump sum income deductions are applied, as specified in §§ 183.91, 183.93, 183.94, 183.95, and 183.98(1)-- (3). . . .'' This provision is confusing for three reasons.

   First, the reference to Section 183.98 is limited to Subsections (1)--(3). Why are Subsections (4)--(7) excluded, since they also apply to lump sum income?

   Second, why wasn't Section 183.92, which relates to a legally responsible relative residing elsewhere, included in the reference?

   Third, this sentence states, ''the lump sum income deductions are applied, as specified in §§ 183.91, 183.93, 183.94, 183.95. . . .'' However, these sections do not use the specific term ''lump sum income deductions.'' How are ''lump sum income deductions'' applied in these sections?

3.  Implementation Procedures.

   Will family groups who were rendered ineligible under the existing regulation be notified that they may now be eligible under the new regulation? If so, how?

JOHN R. MCGINLEY, Jr.,   
Chairperson

[Pa.B. Doc. No. 01-1896. Filed for public inspection October 19, 2001, 9:00 a.m.]