STATE CORPORATION COMMISSION

Bureau of Insurance

April 8, 2010

Administrative Letter 2010-03

TO:   All Insurers Licensed to Write Accident and Sickness Insurance in Virginia, and All Health Services Plans and Health Maintenance Organizations Licensed in Virginia

RE:   14VAC5-190-10 et seq.: Rules Governing the Reporting of Cost and Utilization Data Relating to Mandated Benefits and Mandated Providers - 2009 Reporting Period

The purpose of this Administrative Letter is to assist carriers in the preparation of the Annual Report of Cost and Utilization Data relating to Mandated Benefits and Providers required pursuant to 14VAC5-190-10 et seq. and § 38.2-3419.1 of the Code of Virginia, and to remind all affected carriers of the reporting requirements applicable to mandated benefits and providers for the 2009 reporting year. Carriers should refer to 14VAC5-190-40 for an explanation of the circumstances under which a full and complete or an abbreviated report must be filed, or under which a company may be exempt from filing a report. The Virginia total annual written premiums for all accident and sickness policies or contracts referred to in the regulation is the amount reported to the Commission on the company's Annual Statement for the year ending December 31, 2009. This is the amount used to determine if a report is required. Each affected carrier must submit a completed Form MB-1 to furnish the required information. It is not acceptable to submit more than one Form MB-1 for a single carrier or to consolidate information from different carriers on one form.

The completed Form MB-1 (cover sheet and sections) is due on or before May 1, 2010 and may be submitted electronically. The due date may not be extended for any reason, including the inability to file the reports electronically. The instructions, representative CPT and ICD-9-CM codes, and forms for the 2009 reporting period are available on the Bureau of Insurance's website at:

http://www.scc.virginia.gov/boi/webpages/boimandated
forms.htm

The instructions explain the type of information necessary to complete Form MB-1. All sources of information, including 14VAC5-190-10 et seq., §§ 38.2-3408 through 38.2-3418.14, as applicable, § 38.2-4221, and CPT and ICD-9-CM codes, should be consulted in the preparation of this report. Please note that the CPT and ICD-9-CM codes are not intended to exhaust all medical codes that may be used in collecting data for Form MB-1, but are representative of some of the more common codes associated with the mandated benefits.

Carriers are reminded that failure to submit a substantially complete and accurate report pursuant to the provisions of 14VAC5-190-10 et seq., by May 1, 2010, may be considered a violation subject to a penalty as set forth in § 38.2-218 of the Code of Virginia. Lack of notice, lack of information, lack of means of producing the required data, or other such reasons will not be accepted for not submitting a complete and accurate report in a timely manner.

Correspondence regarding reporting requirements should be directed to: Mary Ann Mason, Senior Insurance Market Examiner, Forms and Rates Section, Bureau of Insurance, Life and Health Division, P.O. Box 1157, Richmond, VA 23218, telephone (804) 371-9348, FAX (804) 371-9944, or email maryann.mason@scc.virginia.gov. System related questions or problems should be directed to: Andrew Iverson, Insurance Analyst, Bureau of Insurance, Automated Systems, P.O. Box 1157, Richmond, VA 23218, telephone (804) 371-9851, FAX (804) 371-9516, or email andrew.iverson@scc.virginia.gov.

/s/ Alfred W. Gross

Commissioner of Insurance

DEPARTMENT OF ENVIRONMENTAL QUALITY

Proposed Consent Order for Belvedere Station Land Trust

An enforcement action has been proposed for Belvedere Station Land Trust for alleged violations in Albemarle County. A proposed consent order describes a settlement to resolve wetland permit reporting and mitigation violations at its Belvedere Development. A description of the proposed action is available at the DEQ office named below or online at www.deq.virginia.gov.

Steven W. Hetrick will accept comments by email at steven.hetrick@deq.virginia.gov, FAX (540) 574-7878 or postal mail at Department of Environmental Quality, Valley Regional Office, P.O. Box 3000, 4411 Early Road, Harrisonburg, VA 22801, from April 26, 2010, to May 26, 2010.

Air Quality Plan

Notice of action: The Department of Environmental Quality (DEQ) is announcing an opportunity for public comment on a proposed plan to assure necessary authorities are contained in the state implementation plan to allow areas to attain and maintain the national ambient air quality standard for ozone and very fine particulate matter (PM_2.5). The Commonwealth intends to submit the plan as a revision to the Commonwealth of Virginia State Implementation Plan (SIP) in accordance with the requirements of § 110(a) of the federal Clean Air Act. The SIP is the plan developed by the Commonwealth in order to fulfill its responsibilities under the federal Clean Air Act to attain and maintain the ambient air quality standards promulgated by the U.S. Environmental Protection Agency (EPA) under the Act.

Purpose of notice: (i) Regulation Revision A08, Article 8 of 9VAC5-80 (Permits for Stationary Sources), Permits for Major Stationary Sources and Major Modifications Locating in Prevention of Significant Deterioration Areas. DEQ is seeking comment on the issue of whether the regulation amendments should be submitted as revisions to the plan. (ii) Two § 110(a)(2) Infrastructure SIP submittals: CS, changes to § 10.1-1302 of the Code of Virginia covering qualifications of members of the board; and DS, changes to previously submitted 8-hour ozone and PM_2.5 § 110(a)(2) infrastructure SIP submittals regarding §§ 110(a)(2)(E)(ii) and 128 requirements for state boards necessitated by § 10.1-1302. DEQ is seeking comment on the issue of whether the plan demonstrates the Commonwealth's compliance with federal Clean Air Act requirements related to general state plan infrastructure.

Public comment period: April 26, 2010, to May 27, 2010.

Public hearing: A public hearing will 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 and address of the person requesting the hearing and be received by DEQ on 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.

Description of proposal: The proposed revisions will consist of amendments to plan provisions concerning the following: (i) For Regulation Revision A08, revising the definitions of "major modification," "major stationary source," "regulated NSR pollutant" and "significant," and the list of exempted facilities, to specify that nitrogen oxides (NO_X) are a precursor of ozone in addition to volatile organic compounds (VOCs). (ii) For Infrastructure SIP submittals CS and DS, revising the plan as needed to demonstrate compliance with §§ 110(a)(2)(E)(ii) and 128 requirements regarding state boards.

Federal information: This notice is being given to satisfy the public participation requirements of federal regulations (40 CFR 51.102). 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 DEQ on the last day of the comment period. All testimony, exhibits, and documents received are part of the public record. Please note this proposed plan is being concurrently reviewed by U. S. EPA.

To review proposal: The proposal and any supporting documents are available on the DEQ Air Public Notices for Plans website (http://www.deq.virginia.gov/air/permitting/ planotes.html). 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) DEQ Main Street Office, 8th Floor, 629 E. Main St., Richmond, VA, telephone (804) 698-4070

2) Southwest Regional Office, 355 Deadmore St., Abingdon, VA, telephone (540) 676-4800

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

4) Blue Ridge Regional Office, Lynchburg Location, 7705 Timberlake Rd., Lynchburg, VA, 804-582-5120

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

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

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

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

Agency Contact: Karen G. Sabasteanski, Department of Environmental Quality, 629 East Main Street, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4426, FAX (804) 698-4510.

Notice of Release of Final Assessment Guidance

The Virginia Department of Environmental Quality (DEQ) will release the final 2010 Water Quality Assessment Guidance Manual on April 26, 2010.

The DEQ Assessment Guidance contains the assessment procedures and methods to be used for the development of Virginia's 2010 § 305(b)/§ 303(d) Integrated (i.e. combined Water Quality Assessment and Impaired Waters) Report. The DEQ Assessment Guidance seeks to address all key elements of the Environmental Protection Agency (EPA) 2006 Assessment Guidance, and both their 2008 and 2010 Assessment Guidance updates, including those released on May 5, 2009, as well as the methods of assessing Chesapeake Bay Water Quality Standards, consistent with "Ambient Water Quality Criteria for Dissolved Oxygen, Water Clarity, and Chlorophyll a for the Chesapeake Bay and Its Tidal Tributaries (July 2007) Addendum" by the U.S. Environmental Protection Agency.

The DEQ guidance also reflects changes in Virginia's Water Quality Standards adopted by the Virginia Water Control Board on October 17, 2008, which became effective on February 1, 2010, after EPA approval on December 29, 2009. Most notably these included changes in many of the criteria for toxics in fish tissue and public water supply as well as revised procedures for assessing water quality in lakes.

Section 62.1-44.19:5 C of the Code of Virginia requires DEQ to develop and publish the procedures used for defining and determining impaired waters and provide for public comment on the procedures. A draft version of this guidance was released for public review and comment on June 29, 2009. The comment period closed on July 24, 2009. Only one comment was received from either the United States Environmental Protection Agency (EPA) or the public.

A copy of the final revised DEQ Assessment Guidance is available to download from the DEQ Water Quality Assessment webpage at http://www.deq.virginia.gov/wqa/. A hard copy can also be requested from Harry Augustine, DEQ Water Quality Assessment Coordinator, using his contact information below.

Collective responses to comments received during the earlier public comment period are also available for download at the URL above. This document has also been mailed to the organization that submitted comment.

Agency Contact: Harry Augustine, Department of Environmental Quality, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4037, FAX (804) 698-4032, or via email at harry.augustine@deq.virginia.gov.

Total Maximum Daily Load for Browns Run and Craig Run

The Department of Environmental Quality (DEQ) and the Department of Conservation and Recreation (DCR) seek written and oral comments from interested persons on the development of an Implementation Plan (IP) for bacteria Total Maximum Daily Loads (TMDLs) on a 2.39 mile stream segment of Browns Run, 3.61 mile segment of Craig Run, and a 8.16 mile segment of Marsh Run in Fauquier County. The TMDLs for these stream impairments were completed in January 2008 and can be found in the Upper Rappahannock River Basin Report on DEQ's website at http://www.deq.virginia.gov/tmdl/apptmdls/rapprvr/urappaec.pdf.

Section 62.1-44.19:7 C of the Code of Virginia requires the development of an IP for approved TMDLs. The IP should provide measurable goals and the date of expected achievement of water quality objectives. The IP should also include the corrective actions needed and their associated costs, benefits, and environmental impacts.

The first public meeting on the development of the IP for the bacteria TMDLs will be held on Tuesday, May 4, 2010, at 7 p.m. at the Cedar Lee Middle School, 11138 Marsh Road (Route 17), Bealton, VA. After a one hour public meeting, stakeholders will break into two working groups to begin the public participation input process for the implementation plan.

The 30-day public comment period on the information presenting at this meeting will end on June 4, 2010. A fact sheet on the development of an IP for the Brown, Craig, and Marsh Runs is available upon request. Questions or information requests should be addressed to Bob Slusser at the Virginia Department of Conservation and Recreation. Written comments and inquiries should include the name, address, and telephone number of the person submitting the comments and should be sent to Bob Slusser, Department of Conservation and Recreation, email address bob.slusser@dcr.virginia.gov, telephone (540) 351-1590.

Total Maximum Daily Load Implementation Plan for James River, Ivy Creek, Tomahawk Creek, Burton Creek, Judith Creek, Fishing Creek, Blackwater Creek, and Beaver Creek

Purpose of notice: The Virginia Department of Environmental Quality (DEQ) seek public comment and participation in developing a bacteria Total Maximum Daily Load Implementation Plan (TMDL IP), or watershed and water quality management plan, for eight stream segments (18.43 miles of James River, 5.37 miles of Ivy Creek, 5.9 miles of Tomahawk Creek, 3.47 miles of Burton Creek, 10.55 miles of Judith Creek, 5.45 miles of Fishing Creek, 10.24 miles of Blackwater Creek and 8.5 miles of Beaver Creek) which drain from portions of Campbell, Bedford, and Amherst counties and the City of Lynchburg.

Public meeting date/location/time: Thursday, May 6, 2010, the meeting will be held in the Hall Center Ball Room at Lynchburg College, 1501 Lakeside Drive, Lynchburg, Virginia from 6:30 p.m. to 8:30 p.m. Signs will be available directing the pubic to the Hall Center Ball Room as you enter Lynchburg College from Lakeside Drive.

Meeting description: This is the first public meeting on the development of the James River Basin TMDL IP, a watershed management plan that outlines voluntary actions or practices that should be utilized within the region to clean up project water bodies. During the meeting citizens will have an opportunity to learn about the stream segment impairments, learn about the TMDL Implementation Plan, and be provided information on opportunities to participate and provide input in the water quality planning initiative.

Public comment period: The public comment period on the materials presented at the public meeting will extend from May 6, 2010, to June 7, 2010.

How to comment: Written comments and inquiries should include the name, address, and telephone number of the person submitting the comments and should be sent to Paula Nash, Department of Environmental Quality, 7705 Timberlake Road, Lynchburg, VA 24502, email paula.nash@deq.virginia.gov, telephone (434) 582-5120 or Kelly Hitchcock, Virginia's Region 2000 Local Government Council, 828 Main Street, 12th Floor, Lynchburg, VA 24504, email khitchcock@region2000.org, telephone (434) 845-3491.

Additional information: For additional information on the James River Basin TMDL Implementation Plan, you may contact Kelly Hitchcock, contact information above, or go the Environmental Section of the Virginia Region 2000 Local Government Council website at http://region2000.org/ environmental-services.html.

Implementation Plan - Mill and Powhatan Creek Watersheds

The Department of Environmental Quality (DEQ), the Department of Conservation and Recreation (DCR), the Hampton Roads Planning District Commission, and James City County invite citizens to a public meeting to discuss the development of an Implementation Plan (IP) to address fecal bacteria impairments in the Mill and Powhatan Creek Watersheds. Water quality monitoring indicates that bacteria levels in Mill and Powhatan Creeks violate Virginia's water quality standards for primary contact recreation. A Total Maximum Daily Load (TMDL) study for the impairments was approved by EPA in 2008 and is available on DEQ's website at http://www.deq.virginia.gov/tmdl/apptmdls/ jamesrvr/millpowec.pdf.

The Implementation Plan will identify ways to meet the pollutant reductions outlined in the TMDL study.

The final public meeting to review the Draft TMDL Implementation Plan will be held on Thursday, May 13, 2010, at 6:30 p.m., James City/Williamsburg Community Center, 5301 Longhill Road, Williamsburg, VA 23188.

The purpose of the meeting is to discuss the proposed management actions to reduce bacteria concentrations in the affected watersheds and to solicit public comment on the draft Implementation Plan. The IP includes the corrective actions needed to reduce bacteria and the associated costs, benefits and environmental impacts. The IP also provides measurable goals and a timeline of expected achievement of water quality objectives. A copy of the draft Implementation Plan will be available on the James City County website by May 3, 2010. (http://www.jccegov.com/stormwater/index.html).

How to comment: The public comment period on the development of the IP will end on June 14, 2009. Oral comments will be accepted and addressed at the public meeting. Additional questions or information requests should be addressed to Jennifer Howell. Written comments and inquires should include the name, address, and telephone number of the person submitting the comments and should be sent to Jennifer Howell, Department of Environmental Quality, 5636 Southern Blvd., Virginia Beach, VA 23262, telephone (757) 518-2111, FAX (757) 518-2003, or email jshowell@deq.virginia.gov or Jennifer Tribo, Hampton Roads Planning District Commission, 723 Woodlake Dr., Chesapeake, VA 23320, telephone (757) 366-4344, FAX (757) 523-4881, jtribo@hrpdc.org.

Water Quality Study for Nebletts Mill Run and Hatcher Run

Public meeting: Public meeting will be held on Wednesday, May 5, 2010, at 2:30 p.m. at the Rowanty Technical Center located at 20000 Rowanty Road, Carson, VA 23830.

Purpose of notice: The Virginia Department of Environmental Quality and the Department of Conservation and Recreation are announcing a water quality study to identify and quantify the bacteria pollution sources in an unnamed tributary (UT) to Nebletts Mill Run in Sussex County and Hatcher Run in Dinwiddie County. This notice announces the first public meetings on May 5 and a public comment opportunity, which begins on May 6.

Meeting description: Overview and summary of the research to date of water quality impairments of the recreation/swimming use (mentioned above) that are due to bacterial violations. Meeting will serve as an opportunity for the public to offer input regarding the impaired watersheds and to ask questions regarding the water quality study and report development. No final results will be available at this meeting.

Description of study: Virginia agencies are working to identify sources of the bacterial contamination for Hatcher Run and an UT to Nebletts Mill Run. This former impairment spans approximately 4 miles and the latter approximately 2 miles. These waterways are impaired for failure to meet the recreational (swimming) designated use due to exceedances of the bacterial water quality standard.

The study reports on the current status of the streams via sampling performed by the Virginia Department of Environmental Quality and the possible sources of bacterial contamination. The study recommends total maximum daily loads (TMDL) for the above impairments. A TMDL is the total amount of a pollutant a water body can contain and still meet water quality standards. To restore water quality, bacteria levels have to be reduced to the TMDL amount.

How to comment: DEQ accepts written comments by email, fax, or postal mail. Written comments should include the name, address, and telephone number of the person commenting and be received by DEQ during the comment period, which expires June 7, 2010. DEQ also accepts written and oral comments at the public meeting announced in this notice.

Contact for additional information: Margaret Smigo, TMDL Coordinator, Department of Environmental Quality, Piedmont Regional Office, 4949A Cox Road, Glen Allen, VA 23060, telephone (804) 527-5124, FAX (804)-527-5106, or email margaret.smigo@deq.virginia.gov.

STATE LOTTERY DEPARTMENT

Director's Order

The following Director's Order of the State Lottery Department was filed with the Virginia Registrar of Regulations on April 1, 2010. The order may be viewed at the State Lottery Department, 900 East Main Street, Richmond, VA, or at the office of the Registrar of Regulations, 910 Capitol Street, 2nd Floor, Richmond, VA.

Director's Order Number Thirty-Seven (10)

"Select Convenience Store Clerk Rewards Program" Virginia Lottery Retailer Incentive Program Rules (effective 4/1/10)

VIRGINIA CODE COMMISSION

Notice to State Agencies

Mailing Address: Virginia Code Commission, 910 Capitol Street, General Assembly Building, 2nd Floor, Richmond, VA 23219.

Cumulative Table of Virginia Administrative Code Sections Adopted, Amended, or Repealed

Beginning with Volume 26, Issue 1 of the Virginia Register of Regulations dated September 14, 2009, the Cumulative Table of Virginia Administrative Code Sections Adopted, Amended, or Repealed will no longer be published in the Virginia Register of Regulations. The cumulative table may be accessed on the Virginia Register Online webpage at http://register.dls.virginia.gov/cumultab.htm.

Filing Material for Publication in the Virginia Register of Regulations

Agencies are required to use the Regulation Information System (RIS) when filing regulations for publication in the Virginia Register of Regulations. The Office of the Virginia Register of Regulations implemented a web-based application called RIS for filing regulations and related items for publication in the Virginia Register. The Registrar's office has worked 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.

The Office of the Virginia Register is working toward the eventual elimination of the requirement that agencies file print copies of regulatory packages. Until that time, agencies may file petitions for rulemaking, notices of intended regulatory actions and general notices in electronic form only; however, until further notice, agencies must continue to file print copies of proposed, final, fast-track and emergency regulatory packages.