STATE CORPORATION COMMISSION

Bureau of Insurance

April 4, 2017

Administrative Letter 2017-01

TO: All Companies Licensed to Sell Annuities or Variable Annuities under Title 38.2 of the Code of Virginia

RE: Revisions to the Rules Governing Suitability in Annuity Transactions (14VAC5-45 of the Virginia Administrative Code)

The Virginia Bureau of Insurance has revised the Rules Governing Suitability in Annuity Transactions, incorporating provisions contained in the National Association of Insurance Commissioners' Suitability in Annuity Transactions Model Regulation. The revised Rules can be accessed at http://law.lis.virginia.gov/admincode/title14/agency5/chapter45/.

Among other changes, the revised Rules require agents to complete a one-time four-credit continuing education (C.E.) course on annuity products. The deadline for compliance with this C.E. requirement is January 1, 2018, for agents currently holding a life insurance line of authority and who desire to sell annuities in Virginia. Agents who obtain a life insurance line of authority on or after January 1, 2018, must complete the C.E. requirement prior to engaging in the sale of annuities in Virginia. Virginia resident agents are required to complete a Virginia approved one-time four-credit C.E. course designated for annuity suitability on or after April 1, 2017. Therefore, courses taken by resident agents prior to April 1, 2017, will not be counted towards compliance. Non-resident agents are exempt if they have already completed a "substantially similar" course in their home state. Insurers are responsible for verifying that any agent selling annuity products in Virginia on their behalf has completed the four-credit C.E. course. (See 14VAC5-45-45 B 10 of the Virginia Administrative Code.)

Questions concerning this administrative letter may be addressed to: Life and Health Division, Bureau of Insurance, State Corporation Commission, P.O. Box 1157, Richmond, VA 23218, telephone (804) 371-9741, or email bureauofinsurance@scc.virginia.gov.

/s/ Jacqueline K. Cunningham
Commissioner of Insurance

DEPARTMENT OF ENVIRONMENTAL QUALITY

Volkswagen Consent Decree Environmental Mitigation Trust Project Ideas

The Commonwealth of Virginia expects to receive $93,600,000 from the Volkswagen (VW) environmental mitigation trust (EMT) between 2017 and 2027. These funds represent a significant opportunity to mitigate the environmental harm caused by the offending VW vehicles and to achieve substantial reductions in air pollution in Virginia. The Virginia Department of Environmental Quality (DEQ) will administer these funds through a state mitigation plan (SMP). The objective of this request for information (RFI) is to gather information to help DEQ gain a better understanding of the best use of VW EMT funds for Virginia.

DEQ is seeking early input from governmental and nongovernmental entities on the type and scope of projects that they may later submit to compete for VW EMT funds, funding and project evaluation priorities, and methods DEQ could employ to increase participation in future requests for VW mitigation projects. This RFI is not a solicitation for projects. Information obtained from this RFI will be used solely for planning purposes, including the development of requirements upon which a solicitation for projects may be based.

How to respond to the RFI: Please follow the detailed instructions provided in the RFI, which is located on DEQ's VW webpage at http://deq.virginia.gov/Programs/Air/VWMitigation.aspx.

Federal information: Additional information is available from the U.S. Environmental Protection Agency (EPA) at http://www.epa.gov/enforcement/volkswagen-clean-air-act-partial-settlement.

Virginia information: DEQ has established a webpage with information about Virginia's actions for meeting the requirements of the VW settlement and the EMT at http://www.deq.virginia.gov/Programs/Air/vwmitigation.aspx. This page will be updated periodically as new information and opportunities for public comment become available.

Contact Information: Angela Conroy, Department of Environmental Quality, 629 East Main Street, P.O. Box 1105, Richmond, VA 23218, telephone (804) 698-4130, or email vwmitigation@deq.virginia.gov.

JOINT COMMISSION ON ADMINISTRATIVE RULES

Notice to State Agencies - Reporting Requirements of Chapter 678 of the 2017 Acts of Assembly

Pursuant to enactment clause 2 of Chapter 678 (HB 1731) of the 2017 Acts of Assembly, the Joint Commission on Administrative Rules (JCAR) is publishing this notice to inform agencies of obligations under the provisions of the act.

The act amends § 2.2-4005 of the Code of Virginia and requires agencies having an exemption authorized by the Administrative Process Act (§ 2.2-4000 et seq. of the Code of Virginia) (APA) to report the following information to JCAR:

1. The exemption and the date the exemption became law. Section 2.2-4002 A 9 of the Code of Virginia provides an exemption for agencies "expressly exempted by any other provision" of the Code of Virginia. Therefore, an agency must also report exemptions from the APA contained in the agency's basic law.

2. A summary of the necessity for the exemption (i.e., why the agency needs the particular exemption).

3. Any regulation adopted by the agency under each exemption in the immediately preceding two fiscal years and a summary of each regulation.  

A web form is in development for agencies to report the required information electronically. JCAR will send an email with instructions and the URL for the web form to agency regulatory coordinators in the near future.

The first report is due August 1, 2017, and covers the period July 1, 2015, through June 30, 2017. Subsequent reports are due every two years thereafter and need only provide the exemption and any regulation adopted pursuant to the exemption in the immediately preceding two fiscal years, if any.

The following agencies are exempt from this reporting requirement: (i) the courts, (ii) any agency of the Supreme Court, and (iii) any agency that by the Constitution of Virginia is expressly granted any of the powers of a court of record.

If an agency fails to submit the required report, JCAR is required to recommend to the Governor and the General Assembly that the agency's exemption be discontinued.

Contact information: Karen W. Perrine, Joint Commission on Administrative Rules, 201 North Ninth Street, Richmond, VA 23229, telephone (804) 786-3591, ext. 261.

VIRGINIA LOTTERY

Director's Orders

The following Director's Orders of the Virginia Lottery were filed with the Virginia Registrar of Regulations on April 12, 2017. The orders may be viewed at the Virginia Lottery, 600 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 Forty (17)

Virginia Lottery's "3-4-5 Play Promotion" Final Rules for Operation (effective May 1, 2017)

Director's Order Number Forty-Five (17)

Virginia's Computer-Generated Lottery Game Mega Millions Final Rules for Game Operation (this Director's Order becomes effective on March 30, 2017, 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)

Director's Order Number Fifty-One (17)

Virginia Lottery's Scratch Game 1768 "Game of Riches" Final Rules for Game Operation (effective April 7, 2017)

Director's Order Number Fifty-Two (17)

Virginia Lottery's Scratch Game 1789 "$" Final Rules for Game Operation (effective April 7, 2017)

Director's Order Number Fifty-Three (17)

Virginia Lottery's Scratch Game 1793 "Quick Cash" Final Rules for Game Operation (effective April 7, 2017)

BOARD OF MEDICAL ASSISTANCE SERVICES

Payments under the Disproportionate Share Hospital Program to Piedmont and Catawba Hospitals - Notice of Intent to Amend the Virginia State Plan for Medical Assistance (pursuant to § 1902(a)(13) of the Social Security Act (42 USC § 1396a(a)(13)))

The Virginia Department of Medical Assistance Services (DMAS) hereby affords the public notice of its intention to amend the Virginia State Plan for Medical Assistance to provide for changes to the Methods and Standards for Establishing Payment Rates-Inpatient Hospital Services (12VAC30-70).

This notice is intended to satisfy the requirements of 42 CFR 447.205 and of § 1902(a)(13) of the Social Security Act, 42 USC § 1396a(a)(13). A copy of this notice is available for public review from William Lessard, Provider Reimbursement Division, DMAS, 600 Broad Street, Suite 1300, Richmond, VA 23219, or via email at william.lessard@dmas.virginia.gov.

DMAS is specifically soliciting input from stakeholders, providers, and beneficiaries on the potential impact of the proposed change in methodology for setting disproportionate share hospital (DSH) payment rates for Piedmont and Catawba hospitals. Comments or inquiries may be submitted, in writing, within 30 days of this notice publication to Mr. Lessard and such comments are available for review at the same address. Comments may also be submitted, in writing, on the Virginia Regulatory Town Hall public comment forum attached to this notice and is available for public review on the Town Hall at http://townhall.virginia.gov, on the General Notices page, found at https://townhall.virginia.gov/L/generalnotice.cfm.

DMAS is making these changes in its methods and standards for setting payment rates for services in order to comply with a request from the Centers for Medicare and Medicaid Services (CMS) to modify the method for making payments under the DSH program for two facilities operated by the Department of Behavioral Health and Development Services. The change would even out the payments to Piedmont and Catawba hospitals so that neither payment would exceed the amount allowed under Medicaid, but the total amount paid to the two hospitals would not change.

This change is necessary because under the current methodology, the DSH payments to Piedmont Hospital often exceed the amount that can be paid to that hospital. The current method allows for the extra payments to be paid to Catawba Hospital (up to the Medicaid limits) at the time of cost settlement. With this change, DMAS could avoid making excess DSH payments to Piedmont Hospital.

The expected increase in annual aggregate expenditures is $0.

Contact Information: Emily McClellan, Regulatory Manager, Division of Policy and Research, Department of Medical Assistance Services, 600 East Broad Street, Suite 1300, Richmond, VA 23219, telephone (804) 371-4300, FAX (804) 786-1680, TDD (800) 343-0634, or email emily.mcclellan@dmas.virginia.gov.

STATE WATER CONTROL BOARD

Proposed Consent Order for The Four Winds Club, Inc.

An enforcement action has been proposed for The Four Winds Club, Inc. for violations of the State Water Control Law and applicable regulations at the Four Winds Campground Sewage Treatment Plant located in Caroline County, Virginia.  The State Water Control Board proposes to issue a consent order to resolve violations associated with the Four Winds Campground Sewage Treatment Plant. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Stephanie Bellotti will accept comments by email at stephanie.bellotti@deq.virginia.gov or postal mail at Department of Environmental Quality, Northern Regional Office, 13901 Crown Court, Woodbridge, VA 22193, from May 2, 2017, through June 1, 2017.

Proposed Enforcement Action for Larry T. Waltrip

An enforcement action has been proposed for Larry T. Waltrip for violations of the State Water Control Law in Williamsburg, Virginia. A description of the proposed action is available at the Department of Environmental Quality office named below or online at www.deq.virginia.gov. Jennifer Coleman, Esq. will accept comments by email at jennifer.coleman@deq.virginia.gov, FAX at (757) 518-2009, or postal mail at Department of Environmental Quality, Tidewater Regional Office, 5636 Southern Boulevard, Virginia Beach, VA 23462, from May 1, 2017, to May 31, 2017.

VIRGINIA WORKERS' COMPENSATION COMMISSION

Public Comment on Proposed Medical Fee Schedules and Ground Rules

The Virginia Workers' Compensation Commission is accepting public comment on the proposed Medical Fee Schedules and Ground Rules, which establish the maximum fees for fee scheduled medical services rendered to injured workers pursuant to the Virginia Workers' Compensation Act (Title 65.2 of the Code of Virginia).

The proposed Fee Schedules may be accessed at http://www.workcomp.virginia.gov/content/virginia-medical-fee-schedules. The Proposed Ground Rules may be accessed at http://www.workcomp.virginia.gov/content
/virginia-medical-fee-schedules-ground-rules.

Persons wishing to provide written comment are encouraged to do so electronically using the following link: http://www.workcomp.virginia.gov/content/Medical-Fee-Schedule-Special-Notice.

Written comments may also be submitted via email to drema.thompson@workcom.virginia.gov or by postal mail to Drema Thompson, using the contact information at the end of this notice. Written comments will be accepted through May 10, 2017.

In addition, the Commission will hold a public hearing on the proposed Fee Schedules and Ground Rules on May 23, 2017, at 8:30 a.m. in Courtroom A at the Virginia Workers' Compensation Commission, Main Headquarters, 1000 DMV Drive, Richmond, VA 23220. All visitors to the commission may be required to present photo identification to enter commission facilities.

Contact Information: Drema Thompson, Medical Fee Services Manager, Virginia Workers' Compensation Commission, 1000 DMV Drive, Richmond, VA 23220, telephone (804) 774-4165, FAX (804) 823-6932, or email drema.thompson@workcomp.virginia.gov.

VIRGINIA CODE COMMISSION

Notice to State Agencies

Contact Information through Thursday, June 15, 2017: Mailing Address: Virginia Code Commission, General Assembly Building, 201 North 9th Street, 2nd Floor, Richmond, VA 23219; Telephone: Voice (804) 786-3591; Email: varegs@dls.virginia.gov.

New Contact Information beginning Monday, June 19, 2017: Mailing Address: Virginia Code Commission, Pocahontas Building, 900 East Main Street, 11th Floor, Richmond, VA 23219, Telephone: Voice will be available at a later date.

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 https://commonwealthcalendar.virginia.gov.

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.

ERRATA

DEPARTMENT OF LAW

Title of Regulation: 1VAC45-20. Regulations Regarding the Virginia Human Rights Act.

Publication: 33:15 VA.R. 1871-1875 March 20, 2017.

Correction to Fast-Track Regulation:

Page 1873, in 1VAC45-20-60 B 3, after "Management;" insert "and"

in 1VAC45-20-60 B 4, after "Disabilities" delete "Virginia Office of Protection and Advocacy" and strike "; and"

in 1VAC45-20-60 B 5, strike "5."

VA.R. Doc. No. R17-3944; Filed April 13, 2017, 2:22 p.m.