LEG REG REVIEW 2011, 3d Issue January 17, 2011

LEG REG REVIEW is a periodic newsletter produced by PHILLIPS ASSOCIATES, a professional lobbying and consultant firm located near the State Capitol. It contains news on the legislative and regulatory scene in that may be of interest to the Insurance and Business Communities. It is a free member benefit for those who are members of the Pennsylvania Association of Health Underwriters (PAHU) or Manufacturers Association of South Central PA (MASCPA). Subscription information may be obtained by contacting PHILLIPS ASSOCIATES at 717/728-1217 FAX 717/728-1164 or e-mail to [email protected]. Please email [email protected] supplying both your name and e-mail address if you wish to be removed from this list.

INSURANCE COMMISSIONER DESIGNATED BY CORBETT Governor Corbett has tapped Harrisburg attorney Michael F. Consedine to be his Insurance Commissioner. A senior insurance attorney for Saul Ewing, Consedine has specialized in a number of insurance areas with particular focus on Pennsylvania’s Mutual Insurance Companies (property casualty) and his representation of “a major central Pennsylvania health insurer in raising anticompetitive and legal objections to the proposed merger of two other dominant Pennsylvania health insurers” (source: www.saul.com/attorneys/bio.aspx?attID=410 )

Prior to joining Saul Ewing, Consedine saw government service during the Ridge Administration as Insurance Department Counsel. Among the areas on which he worked was the legal work connected with Act 40, the statute regulating how banks may sell insurance, and Act 154, the legislation designed to prevent “churning” by life insurance companies. He was also a member of Corbett’s Transition Team. His nomination requires Senate confirmation. Once confirmed, he will succeed Acting Commissioner Robert Pratter.

CORBETT ADMINISTRATION UPDATE A number of other Corbett choices have also been made. Cabinet appointments require Senate confirmation.  Another Saul Ewing attorney, Steve Aichele of Chester County, will be General Counsel to the Administration.  Department of Education Secretary pick is Ron Tomalis, a former U.S. Department of Education official.  PennDOT Secretary will be Barry Schoch who currently is vice president for transportation company McCormick Taylor in central PA and is President of the PA Highway Information Association.  Inspector General will be Kenya Mann Faulkner, a partner in the Philadelphia law firm of Ballard Spahr.  Secretary of the Commonwealth will be Carol Aichele. She is now a Chester County Commissioner and is married to fellow appointee Steve.  Glenn Cannon will direct PA Emergency Management Agency (PEMA). He worked for FEMA and Hillard Heintze Strategic Security Advisors.  DEP Secretary will be Mike Krancer, a Bryn Mawr attorney who has served under Governors of both political parties as a judge of the Environmental Hearing Board  Gary Alexander, Rhode Island’s former Secretary of Health & Human Services will head the Department of Public Welfare.  Department of Revenue will be headed by Dan Meuser, President of Pride Mobility Products.

In addition, Todd Shamash, Senior Counsel and Director of Governmental Affairs at Jefferson Health System is one of Governor Corbett’s Deputy Chiefs of Staff.

1 LEGISLATIVE STAFF MOVE TO ADMINISTRATION Two senior legislative aides are taking up positions within the Corbett Administration. Andrew Ritter, formerly Executive Director of the House GOP Policy Committee, becomes Deputy Secretary of Legislative Affairs while former Senate Environmental Resources & Energy Committee Executive Director Pat Henderson will be the Administration’s point person on energy issues.

SURCHARGE EXPLANATION Former Rep. Roy Reinard (R-Bucks) contacted Leg Reg Review to explain that the surcharge prohibition threshold increase noted in Leg Reg Review of January 10 “is in excess of one’s deductible so the new limit of $1,450.00 is added to a deductible to make one’s individual limit.” Former Rep. Reinard was the author of the original legislation establishing the surcharge restriction.

FEDERAL FINANCIAL SERVICES COMPLAINT DATA BASE ANNOUNCED Under interim authority granted by the Dodd-Frank Act, the U.S. Treasury Department has issued a Notice with a detailed description of the complaint database that will be used by the new Consumer Financial Protection Bureau (CFPB) Implementation Team. The database provides a record of consumer complaints against the financial services industry and will be used as a resource record for use by agencies, the U.S. Department of Justice and/or courts. Comments on the Notice, which can be found here, are due on Feb. 9.

LEGISLATIVE POLITICAL MOVES Two veteran legislators are reportedly seeking other political office. Republican Kate Harper (Montgomery) may be seeking the GOP nomination for Montgomery County Commissioner while Democrat Chelsea Wagner (Allegheny) may run for the Democratic nomination for Allegheny County Controller.

SENATE COMMITTEE CHAIRS NAMED

Committee Republican (Majority) Chair Democrat (Minority) Chair Aging & Youth (Westmoreland) LeAnna Washington (Phila.) Agriculture & Rural Affairs (Lawrence) (Northampton) Appropriations (Centre) (Phila.) Banking & Insurance Don White (Indiana) Mike Stack (Phila.) Communications & Technology Mike Folmer (Lebanon) Larry Farnese (Phila.) Community, Econ & Rec. Dev. (Erie) Wayne Fontana (Allegheny) Consumer Protection Prof. Lic. Bucks) Lisa Boscola (Northampton) Education Jeff Piccola (Dauphin) Andrew Dinniman (Delaware.) Envir. Resources & Energy Mary Jo White (Venango) (Luzerne) Finance (Lancaster) John Wozniak (Cambria) Game & Fisheries (Franklin Richard Kasunic (Fayette) Inter-Gov. Operations Lloyd Smucker (Lancaster) John Blake (Lackawanna) Judiciary Stewart Greenleaf (Mont.) Daylin Leach (Mont.) Labor & Industry (Columbia) (Phila.) Law & Justice John Pippy (Allegheny) (Allegheny) Local Government John Eichelberger (Blair) John Blake (Lackawanna) Public Health & Welfare Pat Vance (Cumberland) Shirley Kitchen (Phila.) Rules Dominic Pileggi (Delaware) (Allegheny) State Government Chuck McIlhinney (Bucks) Anthony Williams (Phila.) Transportation John Rafferty (Mont.) John Wozniak (Cambria) Urban Affairs & Housing (Lycoming) (Westmoreland.) Veterans & Emergency Prep. Lisa Baker (Luzerne) Tim Solobay (Washington)

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