GENERAL NOTICES
Vol. 31 Iss. 17 - April 20, 2015

GENERAL NOTICES/ERRATA

AIR POLLUTION CONTROL BOARD

State Implementation Plan - PM2.5 Nonattainment and Maintenance Areas (Rev. G14)

Notice of action: The Department of Environmental Quality (DEQ) is announcing an opportunity for public comment on a proposed revision to the Commonwealth of Virginia State Implementation Plan (SIP). The SIP is a plan developed by the Commonwealth in order to fulfill its responsibilities under the federal Clean Air Act (the Act) to attain and maintain the ambient air quality standards promulgated by the U.S. Environmental Protection Agency (EPA) under the Act. The Commonwealth intends to submit the regulation to EPA as a revision to the SIP in accordance with the requirements of § 110(a) of the Act.

Regulations affected: The regulation provisions of the board affected by this action concern PM2.5 nonattainment and maintenance areas (Rev. G14) in 9VAC5-20 (General Provisions).

Purpose of notice: DEQ is seeking comment on the issue of whether the regulation amendments should be submitted as a revision to the SIP.

Public comment period: April 20, 2015, through May 20, 2015.

Public hearing: A public hearing may be conducted if a request is made in writing to the contact listed below. In order to be considered, the request must include the full name, address, and telephone number of the person requesting the hearing and be received by DEQ by the last day of the comment period. Notice of the date, time, and location of any requested public hearing will be announced in a separate notice, and another 30-day comment period will be conducted.

Public comment stage: The regulation amendments are exempt from the state administrative procedures for adoption of regulations contained in Article 2 of the Administrative Process Act by the provisions of § 2.2-4006 A 4 c of the Administrative Process Act because they are necessary to meet the requirements of the federal Clean Air Act and do not differ materially from the pertinent EPA regulations. Since the amendments are exempt from administrative procedures for the adoption of regulations, DEQ is accepting comment only on the issue cited above under "purpose of notice" and not on the content of the regulation amendments.

Description of proposal: The proposed revision will consist of amendments to existing regulation provisions concerning PM2.5 nonattainment and maintenance areas. On October 6, 2014 (79 FR 60081), EPA approved a request that localities (Counties of Arlington, Fairfax, Loudoun, and Prince William; Cities of Alexandria, Fairfax, Falls Church, Manassas, and Manassas Park) in the Northern Virginia area that were designated as nonattainment for very fine particulate matter (PM2.5) be redesignated to attainment/maintenance. The amendments revise the list of maintenance areas to include Northern Virginia for PM2.5 (9VAC5-20-203), and revise the list of nonattainment areas to remove Northern Virginia for PM2.5 (9VAC5-20-204).

Federal information: This notice is being given to satisfy the public participation requirements of federal regulations (40 CFR 51.102) and not any provision of state law. The proposal will be submitted as a revision to the Commonwealth of Virginia SIP under § 110(a) of the federal Clean Air Act in accordance with 40 CFR 51.104. It is planned to submit all provisions of the proposal as a revision to the Commonwealth of Virginia SIP.

How to comment: DEQ accepts written comments by email, fax, and postal mail. In order to be considered, comments must include the full name, address, and telephone number of the person commenting and be received by the contact person listed below by the last day of the comment period. All materials received are part of the public record.

To review regulation documents: The proposal and any supporting documents are available on the DEQ Air Public Notices for Plans website  at http://www.deq.state.va.us/Programs/Air/PublicNotices/airplansandprograms.aspx. The documents may also be obtained by contacting the DEQ representative named below. The public may review the documents between 8:30 a.m. and 4:30 p.m. of each business day until the close of the public comment period at the following DEQ locations:

1) Main Street Office, 629 East Main Street, 8th Floor, Richmond, VA, telephone (804) 698-4070,

2) Southwest Regional Office, 355 Deadmore Street, Abingdon, VA, telephone (276) 676-4800,

3) Blue Ridge Regional Office, Roanoke Location, 3019 Peters Creek Road, Roanoke, VA, telephone (540) 562-6700,

4) Blue Ridge Regional Office, Lynchburg Location, 7705 Timberlake Road, Lynchburg, VA, (434) 582-5120,

5) Valley Regional Office, 4411 Early Road, Harrisonburg, VA, telephone (540) 574-7800,

6) Piedmont Regional Office, 4949-A Cox Road, Glen Allen, VA, telephone (804) 527-5020,

7) Northern Regional Office, 13901 Crown Court, Woodbridge, VA, telephone (703) 583-3800, and

8) Tidewater Regional Office, 5636 Southern Boulevard, Virginia Beach, VA, telephone (757) 518-2000.

Contact Information: Karen Sabasteanski, Department of Environmental Quality, 629 East Main Street, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4426, FAX (804) 698-4510, or email karen.sabasteanski@deq.virginia.gov.

STATE CORPORATION COMMISSION

Bureau of Insurance

March 30, 2015

Administrative Letter 2015-07

To: All Insurers Licensed to Write Insurance Primarily for Personal, Family, or Household Purposes, Life Insurance, Annuities, and Accident and Sickness Insurance in Virginia, and All Interested Parties

Re: Requirements for Adverse Underwriting Decisions and Notices; Withdrawal of Administrative Letters 1978-04; 1978-09; 1978-11; 1981-04; 1981-15, 1981-16, and 2003-06

NOTE: EACH INSURER RECEIVING THIS ADMINISTRATIVE LETTER IS INSTRUCTED TO MAKE EACH OF ITS CURRENTLY APPOINTED AGENTS AND EACH NEWLY APPOINTED AGENT AWARE OF THIS ADMINISTRATIVE LETTER.

Since 1978, Chapter 6 of Title 38.2 of the Code of Virginia (Chapter) has been amended and several Administrative Letters have been issued by the Bureau of Insurance (Bureau) that addressed specific issues or changes made to those statutes regarding adverse underwriting decisions and providing the required notice. This administrative letter compiles all of the information on adverse underwriting decisions (AUD) included in previous letters and provides guidance on insurers' responsibility to provide the required notice to insureds.1 Consequently, the following Administrative Letters are hereby withdrawn: 1978-04; 1978-09; 1978-11; 1981-04; 1981-15, 1981-16, 1992-25, and 2003-06.

The Bureau provides the following guidance which is to be used in conjunction with the provisions of Chapter 6 of Title 38.2 of the Code of Virginia.

Definitions and Scope

Sections 38.2-601 and 38.2-602 of the Code of Virginia set forth respectively the scope and definitions applicable to the Chapter, which are crucial to a proper understanding of the Chapter and must be read very carefully. Chapter 6 establishes standards for the collection, use, and disclosure of personal information gathered in connections with insurance transactions by insurance agents, insurance institutions, or insurance-support organizations. This chapter limits the disclosure of such information and provides a means for applicants and policyholders to obtain the reasons for any adverse underwriting decision (AUD).

Chapter 6 only applies to the underwriting and servicing of insurance purchased primarily for personal, family, or household needs rather than business or professional needs.

In addition to the definition of adverse underwriting decision (below), the following definitions in § 38.2-602 of the Code of Virginia are very important when considering AUDs: individual, insurance transaction, personal information, and privileged information.

Adverse Underwriting Decisions

Adverse underwriting decision means:

Any of the following actions with respect to insurance transactions involving insurance coverage that is individually underwritten:

a. A declination of insurance coverage;

b. A termination of insurance coverage;

c. Failure of an agent to apply for insurance coverage with a specific insurance institution that an agent represents and that is requested by an applicant;

d. In the case of a property or casualty insurance coverage:

(1) Placement by an insurance institution or agent of a risk with a residual market mechanism or an unlicensed insurer; or

(2) The charging of a higher rate on the basis of information that differs from that which the applicant or policyholder furnished; or

e. In the case of a life or accident and sickness insurance coverage, an offer to insure at higher than standard rates, or with limitations, exceptions, or benefits other than those applied for.

With respect to AUDs, Chapter 6 provides the following rights:

• Grants individuals and certain other persons the general right to access recorded personal information (§ 38.2-608 of the Code of Virginia);

• Grants individuals and certain other persons the right to correct, amend, or delete any recorded information in a file and, if the information is not changed, the right to put in the file information the individual believes is correct, relevant, or fair as well as a concise statement why the individual disagrees with the information in the file (§ 38.2-609 of the Code of Virginia);

• Requires that individuals and certain other persons are provided the reason(s) for any AUD, the information on which the decision was based, and the opportunity to see and copy the information subject to certain limitations (§ 38.2-610 of the Code of Virginia);

• Prohibits an individual from being asked whether he or she was the subject of a previous AUD or previously obtained insurance through a residual market mechanism without also being asked the reason (§ 38.2-611 of the Code of Virginia);

• Prohibits an AUD from being based, in whole or in part, on the fact of a previous AUD, on the fact that an individual previously obtained insurance through a residual market mechanism, on information from certain types of insurance-support organizations, or on the fact that the individual previously obtained insurance through a particular insurance institution or agent. (§ 38.2-612 A of the Code of Virginia)

• Prohibits insurance institutions and agents from basing an AUD solely on the loss history of the previous owner of the property to be insured (§ 38.2-612 B of the Code of Virginia); and

• Provides an individual with the power to seek legal action against an insurance institution, agent, or insurance support organization for violations of certain sections of the Chapter. (§ 38.2-617 of the Code of Virginia).

AUD Notice

In the event of an AUD, the insurer or agent must give certain information to the applicant, policyholder, or individual proposed for coverage. The insurer or agent must provide such person with (1) the specific reason or reasons for the AUD, or advise the person that, upon request, he may receive the reason or reasons in writing, and (2) a summary of the person's rights under §§ 38.2-608 and 38.2-609, as well as § 38.2-610 B of the Code of Virginia.

The applicant, policyholder, or individual has 90 business days from the date of receipt of the AUD notice to request the reason or reasons for such decision. Within 21 business days from the receipt of such request, the insurer or agent must furnish the specific reason or reasons for the AUD and the specific items of personal and certain privileged information that support the AUD. The insurer or agent must also provide the names and addresses of the institutional sources that supplied the specific items of personal or privileged information. No charge may be made for the copying of the material provided in response to the request from the applicant, policyholder, or individual.

Attached to this letter is a prototype AUD notice setting forth the kinds of information that should be contained in an AUD notice. AUD notices containing wording that is substantially similar to that in the prototype are deemed acceptable for use in Virginia. This does not prevent insurers and agents from including more information in AUD notices about rights provided under Virginia law or the procedures used by the insurer, agent, or insurance-support organization to comply with the law.

Examples of Actions Triggering AUD Notices

• When increasing insureds' premiums or charging points under Safe Driver Insurance Plans, insurers writing private passenger automobile insurance must also be aware that AUD notices are required.

• When an application is closed/denied because the applicant, his physician, or some other person fails to furnish required information, such closure or denial is a declination of coverage and triggers an AUD notice.

• When coverage is

A. Terminated (cancelled or nonrenewed);

B. Not placed with the specific insurance institution requested by the applicant;

C. In the case of accident and sickness or life insurance,

(i) offered at a rate higher than that requested,

(ii) offered at a lower benefit level than that requested, or

(iii) offered with exclusions or exceptions other than those requested,

D. In the case of property and casualty insurance,

(i) offered through a residual market mechanism or unlicensed insurer, or

(ii) offered at a higher premium based on information that differs from that provided by the applicant.

Notice Required but Not an AUD Notice

While an AUD notice is not required in the following circumstances the insurance institution or agent responsible for their occurrence must give notice to the applicant or policyholder of the specific reason or reasons for their actions (see § 38.2-602, definition of Adverse Underwriting Decision, subsection 2):

• The termination of an individual policy form on a statewide basis;

• A declination of insurance coverage solely because such coverage is not available on a class or statewide basis; or

• The rescission of a policy.

An example of a declination due to coverage not available on a class basis is a declination of coverage based on eligibility requirements clearly addressed in an accident and sickness insurance policy that has been filed and approved by the Bureau. Another example of a declination of coverage triggering a notice arises when an applicant requests an optional coverage from an automobile insurer that no longer offers such coverage.

Questions about this administrative letter should be directed to:

For the Property and Casualty Division, George A. Lyle, CPCU, CIC, AIE, Principal Insurance Market Examiner, P&C Consumer Services, telephone (804) 371-9185, or email george.lyle@scc.virginia.gov.

For the Life & Health Division, Ann Colley, Principal Insurance Analyst, L&H Research, telephone (804) 371-9813, or email ann.colley@scc.virginia.gov.

/s/ Jacqueline K. Cunningham
Commissioner of Insurance

_______________________________

1 Additional information may be found in the Common Problems Found During Examinations Identified by the Property and Casualty Market Conduct and Consumer Services Sections and the Common Problems Identified During Life And Health Market Conduct Examinations, which are located at http://scc.virginia.gov/boi/laws.aspx.

Administrative Letter 2015-07

Attachment

Prototype AUD Notice

In connection with your application for or policy of ___ insurance, we have found it necessary to take the following action:

The reasons for this action are as follows:

(The reason for the action may be given here or in lieu of this sentence the following sentence may be substituted: "You have a right to obtain the specific reason(s) for this decision by submitting a written request to the company.")

You have the right to know the specific items of information that support the reasons given for this decision and the identity of the source of that information. You also have the right to see and obtain copies of documents relating to this decision.

If you ask us to correct, amend, or delete any information about you in our files and if we refuse to do so, you have the right to give us a concise statement of what you believe is the correct information. We will put your statement in our file so that anyone reviewing your file will see it.

If you would like additional information concerning this action, state law requires that you submit a written request within ninety (90) business days from the date this notice was mailed to you. Please send your request to:

(Show the name and address of the person or department to contact for additional information.)

VIRGINIA LOTTERY

Director's Orders

The following Director's Orders of the Virginia Lottery were filed with the Virginia Registrar of Regulations on April 1, 2015. The orders may be viewed at the Virginia Lottery, 900 East Main Street, Richmond, Virginia, or at the office of the Registrar of Regulations, 201 North 9th Street, 2nd Floor, Richmond, Virginia.

Director's Order Number Eighteen (15)

Virginia's Computer-Generated Game Lottery "Pick 4" Final Rules For Game Operation (This Director's Order becomes effective February 27, 2015, fully replaces any and all prior Virginia Lottery "Pick 4" game rules, and shall remain in full force and effect unless amended or rescinded by further Director's Order)

Director's Order Number Thirty-One (15)

Virginia's Computer-Generated Game Lottery "Pick 3" Final Rules For Game Operation (This Director's Order becomes effective February 18, 2015, fully replaces any and all prior Virginia Lottery "Pick 3" game rules, and shall remain in full force and effect unless amended or rescinded by further Director's Order)

Director's Order Number Thirty-Four (15)

Virginia's Instant Game Lottery 1545 "20X The Money" Final Rules For Game Operation (effective March 19, 2015)

Director's Order Number Thirty-Five (15)

Virginia's Instant Game Lottery 1538 "Winner Take All" Final Rules For Game Operation (effective March 19, 2015)

Director's Order Number Thirty-Six (15)

Virginia's Instant Game Lottery 1558 "Money, Money, Money" Final Rules For Game Operation (effective March 19, 2015)

Director's Order Number Thirty-Seven (15)

Virginia's Instant Game Lottery 1551 "Find The 9's" Final Rules For Game Operation (effective March 19, 2015)

Director's Order Number Thirty-Eight (15)

Virginia Lottery's "2015 RIR Torque Club Ticket Giveaway" Final Rules For Operation (This Director's Order becomes effective on Friday, April 24, 2015, and shall remain in full force and effect unless amended or rescinded by further Director's Order)

Director's Order Number Thirty-Nine (15)

Virginia's Computer-Generated Game Lottery "Cash4Life®" Final Rules For Game Operation (This Director's Order becomes effective on May 3, 2015, and shall remain in full force and effect unless amended or rescinded by further Director's Order)

Director's Order Number Forty-Seven (15)

Virginia's Ninth Computer-Generated Game Lottery Mega Millions Final Rules For Game Operation (This Director's Order becomes effective March 24, 2015, fully replaces any and all prior Virginia Lottery "Mega Millions" game rules, and shall remain in full force and effect unless amended or rescinded by further Director's Order)

DEPARTMENT OF TRANSPORTATION

Public Comment Period for Mobile Food Vending on State Highway Right-of-way

The Virginia Department of Transportation (VDOT) plans to  prepare and propose to the Commonwealth Transportation Board (CTB) amendments to the land use permit regulations (24VAC30-151-670) in accordance with the provisions set out in Chapter 466 of the 2015 Acts of Assembly, which would allow mobile food vending on state highway right-of-way.  The CTB will then consider the amendments for adoption, or may direct that additional input be solicited before making a decision.

Currently, the Land Use Permit Regulations (24VAC30-151) prohibit vendors from selling on state highway right-of-way. Chapter 466 requires the CTB to amend its regulations to allow mobile food vending on non-limited access highways.  Chapter 466 further provides that the regulations shall allow localities to regulate operation of the mobile food vending businesses located on state highway right-of-way in a manner consistent with local ordinances and Commonwealth Transportation Board regulations and policies.

Chapter 466 also requires VDOT to seek input from localities and other stakeholders during the process of amending the regulations. This general notice is not intended to substitute for any subsequent solicitations of public input that may be made during a formal regulatory amendment process.

The public comment period closes at 5:00 p.m. on May 4, 2015.  Anyone wishing to submit comments may do so by mail or fax to Robert W. Hofrichter, Assistant Administrator, Transportation and Mobility Planning Division, Virginia Department of Transportation, 1401 East Broad Street, Richmond, Virginia 23219, FAX 804-225-4785, or email robert.hofrichter@vdot.virginia.gov.

STATE WATER CONTROL BOARD

Public Comment Period for Leesville Auto-Cycle vs. Continuous Release Study

Purpose: The purpose of this comment period is to provide the public with an opportunity to submit to the Department of Environmental Quality (DEQ) written comments on the Leesville Auto-Cycle vs. Continuous Release Study (Study) dated February 2015, submitted by Appalachian Power Company, in accordance with Virginia Water Protection (VWP) Permit No. 08-0572 for the Smith Mountain Project located in Franklin, Bedford, Pittsylvania, and Campbell Counties, Virginia.

Background: The Study investigated the potential effects from different operational procedures to provide downstream flows to the Staunton River through auto-cycling versus continuous releases at Leesville Dam. The effects of these operations were reviewed with respect to bank erosion, recreation, public safety, water quality, and aquatic habitat in the Staunton River between Leesville Dam and the confluence with Goose Creek. A copy of the Study can be obtained at http://www.deq.virginia.gov/programs/water/wetlandsstreams/publicnotices.aspx.

Public comment period: Written comments will be accepted from April 1, 2015, through April 30, 2015, at 11:59 p.m. Any comments received by DEQ during the comment period will be taken under consideration during DEQ's review of the report that will be concurrent with DEQ's five-year review of the permit. All comments must be in writing and submitted by mail, email, or fax to the contact person listed below.

Contact Information: Brian McGurk, Department of Environmental Quality, 629 East Main Street, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4180, FAX (804) 698-4131, or email brian.mcgurk@deq.virginia.gov.

Proposed Consent Order for Sandy's MHC, LLC

An enforcement action has been proposed for Sandy's MHC, LLC (Sandy's) for violations in Frederick County, Virginia. The State Water Control Board proposes to issue a consent order to Sandy's to address noncompliance with State Water Control Law. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Tiffany Severs will accept comments by email at tiffany.severs@deq.virginia.gov, FAX at (540) 574-7878, or postal mail at Department of Environmental Quality, Valley Regional Office, 4411 Early Road, P.O. Box 3000, Harrisonburg, VA 22801, from April 20, 2015, through May 20, 2015.

STATE WATER CONTROL BOARD
VIRGINIA WASTE MANAGEMENT BOARD

Proposed Enforcement Action for Duke Energy Carolinas, LLC

An enforcement action has been proposed for Duke Energy Carolinas, LLC for a coal ash release into the Dan River from its Eden facility in February 2014. The enforcement action assesses a penalty and provides for the performance of supplemental environmental projects. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Kathleen O'Connell will accept comments by email at kathleen.oconnell@deq.virginia.gov, FAX at (804) 698-4277, or by postal mail at the Department of Environmental Quality, 629 East Main Street, Richmond, VA 23219, through May 20, 2015.

VIRGINIA CODE COMMISSION

Requesting Comments on Future Code of Virginia Title Recodifications

The Virginia Code Commission, which is responsible for publishing and maintaining the Code of Virginia, is considering which title of the Code of Virginia to select next for recodification and accepting comments relating to this selection.

Generally, the commission selects a title for recodification on the basis of the need to logically reorganize content, modernize language, and reflect current Code style and numbering schemes. To the extent practical, the commission avoids making substantive changes to the statutory text. In the event that a substantive change is made, the change is highlighted and explained in a final report. More information on title recodification can be found at http://codecommission.dls.virginia.gov/title_23.shtml.

The commission is currently working on the recodification of Title 23, Educational Institutions, assisted by an advisory panel of practitioners experienced in this subject area. The completion of work on proposed Title 23.1, Educational Institutions, is expected by the end of 2015, with the introduction of resulting legislation expected in the 2016 Session of the General Assembly.

Titles considered as recodification candidates include: Titles 8.01 (Civil Remedies and Procedure), 22.1 (Education), 36 (Housing), 40.1 (Labor and Employment), 45.1 (Mines and Mining), and 55 (Property and Conveyances).

The commission is scheduled to meet on May 4, 2015, at 10 a.m. in the General Assembly Building, 6th Floor, Speaker's Conference Room, Richmond, VA 23219 to discuss title recodification candidates and review comments.

Comments received by May 3, 2015, will be considered at the May 4 meeting. Comments may be emailed to vacode@dls.virginia.gov or mailed to Virginia Code Commission, General Assembly Building, 2nd Floor, 201 North Ninth Street, Richmond, VA 23219.

Notice to State Agencies

Contact Information: Mailing Address: Virginia Code Commission, General Assembly Building, 201 North 9th Street, 2nd Floor, Richmond, VA 23219; Telephone: Voice (804) 786-3591; FAX (804) 692-0625; Email: varegs@dls.virginia.gov.

Meeting Notices: Section 2.2-3707 C of the Code of Virginia requires state agencies to post meeting notices on their websites and on the Commonwealth Calendar at http://www.virginia.gov/connect/commonwealth-calendar.

Cumulative Table of Virginia Administrative Code Sections Adopted, Amended, or Repealed: A table listing regulation sections that have been amended, added, or repealed in the Virginia Register of Regulations since the regulations were originally published or last supplemented in the print version of the Virginia Administrative Code is available at http://register.dls.virginia.gov/documents/cumultab.pdf.

Filing Material for Publication in the Virginia Register of Regulations: Agencies use the Regulation Information System (RIS) to file regulations and related items for publication in the Virginia Register of Regulations. The Registrar's office works closely with the Department of Planning and Budget (DPB) to coordinate the system with the Virginia Regulatory Town Hall. RIS and Town Hall complement and enhance one another by sharing pertinent regulatory information.