Interim Guidance

Federal Register / Vol. 68, No. 59 / Thursday, March 27, 2003 / Notices
Issued in Washington, DC on March 21,
2003.
Kathy A. Weiner,
Director, Office of Information Technology
and Support Systems, Federal Railroad
Administration.
[FR Doc. 03–7296 Filed 3–26–03; 8:45 am]
BILLING CODE 4910–06–P

NATIONAL HIGHWAY TRAFFIC
SAFETY ADMINISTRATION
Public Health Authority Notification
AGENCY: National Highway Traffic
Safety Administration (NHTSA),
Department of Transportation (DOT).
ACTION: Notice.
SUMMARY: NHTSA is publishing this
notice to inform hospitals and other
health care organizations of its status as
a ‘‘public health authority’’ under the
medical privacy requirements of the
Health Insurance Portability and
Accountability Act of 1996.
FOR FURTHER INFORMATION CONTACT:
Tyler Bolden, NHTSA, Office of Chief
Counsel, 400 7th Street, SW Suite 5219,
Washington, DC 20590. 202–366–1834.
SUPPLEMENTARY INFORMATION: The
Health Insurance Portability and
Accountability Act of 1996 (‘‘HIPAA’’)
was enacted to improve the portability
and continuity of health insurance
coverage, to improve access to long-term
care services and coverage, to simplify
the administration of health insurance,
and for other purposes (Pub. L. No. 104–
191, 110 Stat. 196 (1996)). The
Administrative Simplification subtitle
of HIPAA authorized the Department of
Health and Human Services (‘‘HHS’’) to
promulgate medical privacy regulations
to protect the privacy of individuallyidentifiable electronic health
information. These regulations (the
‘‘Privacy Rule’’) were published by HHS
on December 28, 2000 and established
the standards to identify the rights of
individuals who are the subjects of
‘‘protected health information,’’ which
is defined as individually-identifiable
health information; provide procedures
for the exercise of those rights; and
define the general rules for permitted
and required uses and disclosures of
protected health information (45 CFR
Parts 160–164).
Beginning April 14, 2003, the Privacy
Rule prohibits health plans, health care
clearinghouses and selected health care
providers from using or disclosing
protected health information, except as
permitted by certain exceptions (45 CFR
164.502). Under one exception, the
Privacy Rule permits the disclosure of
protected health information to public

VerDate Jan<31>2003

14:45 Mar 26, 2003

Jkt 200001

health authorities authorized to ‘‘collect
or receive such information for the
purpose of preventing or controlling
disease, injury, or disability . . . ‘‘ (45
CFR 164.512(b)(1)(i)). A ‘‘public health
authority’’ includes ‘‘an agency or
authority of the United States . . . that
is responsible for public health matters
as part of its official mandate’’ (45 CFR
164.501). Examples of public health
matters include the reporting of disease,
injury, or vital events; and public health
surveillance, public health
investigations or public health
interventions (45 CFR 164.512(b)(1)(i)).
Guidance issued by HHS on
December 2, 2002 further addressed the
issue of disclosures to public health
authorities. Specifically, the guidance
stated that:
The HIPAA Privacy Rule recognizes the
legitimate need for public health authorities
and others responsible for ensuring public
health and safety to have access to protected
health information to carry out their public
health mission . . . the [Privacy] Rule
permits covered entities to disclose protected
health information without authorization for
specified public health purposes.

NHTSA’s mission is to prevent and
reduce deaths, injuries and economic
losses resulting from automotive travel
on our nation’s roadways. To
accomplish this mission, NHTSA has
statutory authority to conduct crash
injury research and collect relevant data
in the interest of public health.
Specifically, NHTSA is authorized to:
(1) Engage in research on all phases of
highway safety and traffic conditions;
(2) undertake collaborative research and
development projects with non-Federal
entities for the purposes of crash data
collection and analysis; and (3) conduct
research and collect information to
determine the relationship between
motor vehicles and accidents, and
personal injury or deaths resulting from
such accidents (See 23 U.S.C. 403(a)(1),
23 U.S.C. 403(f) and 49 U.S.C. 30168(a)).
The term ‘‘safety’’ is defined as
‘‘highway safety and highway
safety’related research and
development, including research and
development relating to highway and
driver characteristics, crash
investigations, communications,
emergency medical care, and
transportation of the injured’’ (23 U.S.C.
403(a)(3)).
In light of the above-referenced
statutory authority, which demonstrates
a responsibility for public health
matters as part of the agency’s mandate,
NHTSA has determined that it is a
public health authority within the
meaning of the Privacy Rule. As a
public health authority, NHTSA is
entitled to receive protected health

PO 00000

Frm 00100

Fmt 4703

Sfmt 4703

15039

information from hospitals and other
health care organizations, without
written consent or authorization,
because disclosures of protected health
information to a public health authority
are permitted disclosures under the
Privacy Rule (45 CFR 164.502(a)(1)(vi)).
Issued on: March 21, 2003.
Jeffrey W. Runge,
Administrator, National Highway Traffic
Safety Administration.
[FR Doc. 03–7301 Filed 3–26–03; 8:45 am]
BILLING CODE 4910–59–P

DEPARTMENT OF THE TREASURY
Departmental Offices; Interim
Guidance Providing Procedure for
Rebuttal of Presumption of Control of
an Insurer for Purposes of the
Terrorism Risk Insurance Program
Departmental Offices, Treasury.
Notice.

AGENCY:
ACTION:

SUMMARY: This notice provides interim
guidance to insurers that wish to rebut
a presumption of control by the
Department of Treasury as administrator
of the Terrorism Risk Insurance
Program.
DATES: This notice is effective
immediately and will remain in effect
until superceded by regulations or by
subsequent notice.
FOR FURTHER INFORMATION CONTACT:
Mario Ugoletti, Deputy Director, Office
of Financial Institutions Policy 202–
622–2730; Martha Ellett, AttorneyAdvisor, Office of the Assistant General
Counsel (Banking and Finance) 202–
622–0480.
SUPPLEMENTARY INFORMATION: This
notice provides interim guidance to
assist insurers that wish to rebut a
presumption of controlling influence for
purposes of the Terrorism Risk
Insurance Program (the Program)
established by Title I of the Terrorism
Risk Insurance Act of 2002 (Pub. L. 107–
297) prior to the issuance by the
Department of Treasury (Treasury) of
regulations incorporating a procedure
for rebuttal of a controlling influence
presumption. This interim guidance
remains in effect until superceded by
regulations or subsequent notice.

I. Background
On November 26, 2002, the President
signed into law the Terrorism Risk
Insurance Act of 2002 (the Act). The Act
became effective immediately. It
establishes a temporary federal program
of shared public and private
compensation for insured commercial
property and casualty losses resulting

E:\FR\FM\27MRN1.SGM

27MRN1

15040

Federal Register / Vol. 68, No. 59 / Thursday, March 27, 2003 / Notices

from an ‘‘act of terrorism,’’ as defined in
the Act. The Program is administered
and implemented by Treasury and will
sunset on December 31, 2005.
Section 102(3) of the Act sets forth the
Act’s definition of the term ‘‘control.’’
Treasury issued an interim final rule
containing Program definitions,
including the definition of an ‘‘affiliate’’
of an ‘‘insurer.’’ 68 FR 9803 (February
28, 2003). The definition of ‘‘affiliate’’ in
the interim final rule incorporates the
three categories in the statutory
definition of control: (a) If an insurer
directly or indirectly owns, controls or
has the power to vote 25 percent or
more of any class of voting securities of
the other insurer; (b) if an insurer
controls in any manner the election of
a majority of the directors or trustees of
the other insurer; or (c) even if there is
no control under (a) or (b), if the
Secretary determines after notice and
opportunity for hearing that an insurer
directly or indirectly exercises a
controlling influence over the
management or policies of the other
insurer.
In the interim final rule at 31 CFR
50.5(c)(2), Treasury established several
rebuttable presumptions for purposes of
a determination of controlling influence,
and, therefore, of control by an insurer
over another insurer for purposes of the
Program. If an insurer controls another
insurer, then, for example, their direct
earned premiums are consolidated for
purposes of calculating the insurer
deductible. The rebuttable
presumptions of control in the interim
final rule apply unless (i) subsequently
modified by Treasury by regulation or
order, or (ii) an affected insurer or
insurers makes a rebuttal submission to
Treasury, as set forth below, and
Treasury determines that no control
relationship exists for purposes of the
Program.
II. Interim Guidance
Treasury will be issuing regulations
containing a procedure for rebutting
presumptions of a controlling influence
for purposes of the Program. Treasury is
issuing the following procedure as
interim guidance for an insurer (as that
term is defined by section 102 (6) of the
Act and under Treasury’s interim final
regulations) to follow if such insurer
wishes to rebut a presumption of
controlling influence prior to the
issuance of such regulations. This
rebuttal procedure may also be found on
Treasury’s Terrorism Risk Insurance
Program Web site at http://
www.treasury.gov/trip.

VerDate Jan<31>2003

14:45 Mar 26, 2003

Jkt 200001

Procedure for Rebutting Presumption of
Control
(1) An insurer or insurers may make
a written submission to Treasury to
rebut a presumption, established under
31 CFR 50.5(c)(2), of a controlling
influence by the insurer under the
Program. Prior to establishment of a
Terrorism Risk Insurance Program
Office within Treasury, such rebuttal
submissions shall be made to the Office
of Financial Institutions Policy,
Terrorism Risk Insurance Program,
Room 3160 Annex, Department of
Treasury, 1500 Pennsylvania Ave, NW.,
Washington, DC 20220. The submission
to rebut a controlling influence
presumption should be entitled
‘‘Submission to Rebut Control
Presumption’’ and should provide the
full name and address of the submitting
insurer(s) rebutting control and the
name, title, address and telephone
number of the designated contact
person(s) for such insurer(s).
(2) Following receipt of a rebuttal
submission, Treasury will review the
submission and determine whether
Treasury needs additional written or
orally presented information from the
submitting insurer in order to determine
whether the presumption of controlling
influence has been rebutted. In its
discretion, Treasury may schedule a
date, time and place for an oral
presentation by the insurer(s).
(3) A rebuttal submission by an
insurer or insurers under the Program
shall provide all relevant facts and
circumstances concerning the
relationship(s) between or among the
affected insurers; explain in detail why
no controlling influence exists and
provide support for why the rebuttable
presumption should not apply in light
of particular facts and circumstances
and the Act’s language, structure and
purpose.
(a) General Information for Rebuttal
Submission. The types of information
that Treasury may consider in reviewing
rebuttal submissions include:
(i) The ownership structure of the
insurer that is subject to the
presumption of control, such as an
organization chart and whether its stock
or other capital is widely or closely
held;
(ii) The degree to which the
ownership or capacity providers of the
insurer share in the profits and losses of
the insurer;
(iii) The management structure of the
insurer, including a description and
copies of management contracts and any
informal management arrangements;
(iv) Information on financial support
provided by the insurer presumed in

PO 00000

Frm 00101

Fmt 4703

Sfmt 4703

control to the insurer presumed to be
controlled, including the nature and
amount of debt instruments held by one
insurer in the other and information on
financial support provided by
companies other than the insurer
presumed to be in control;
(v) Information on who makes
management, investment or other
significant business decisions for the
insurer presumed to be controlled and
how these are made and similar
information; and
(vi) Any other information that may
be relevant to the determination of
control.
(b) Information for Rebuttal of
Specific Presumptions. In addition to
the general information described above
in (a), the types of information Treasury
may review in connection with a
rebuttal of a specific presumption
includes the following:
(i) In rebutting a presumption based
on a State determination of control, the
insurer’s submission must include a
copy of the State’s determination of
control, the name, title and telephone
number of the head of the appropriate
State agency along with copies of
relevant State regulations or rulings and
citations to relevant statutes;
(ii) In rebutting a presumption based
on provision by one insurer of 25
percent or more of capital, policyholder
surplus or corporate capital, the
insurer’s submission should include
financial and accounting statements for
the most recent calendar year and
copies of relevant financial and control
information provided to State
regulators; and
(iii) In rebutting a presumption based
on the fact that an insurer supplies 25
percent or more of the underwriting
capacity for that year to another insurer
that is a syndicate consisting of a group
including incorporated and individual
unincorporated underwriters, the
insurer submission shall include
financial statements for the most recent
calendar year and copies of relevant
financial and control information
provided to State regulators.
(c) Confidential Information. Any
confidential business or trade secret
information submitted to Treasury in a
rebuttal submission should be clearly
marked. (4) Treasury shall review and
consider the insurer submission and
other relevant facts and circumstances,
including information provided by the
insurer’s State regulator. Unless
otherwise extended by Treasury, within
60 days after receipt of a complete
submission, including any oral
presentation, Treasury shall issue a final
determination of whether a submitter
has rebutted the relevant regulatory

E:\FR\FM\27MRN1.SGM

27MRN1

Federal Register / Vol. 68, No. 59 / Thursday, March 27, 2003 / Notices
presumption of a controlling
relationship for purposes of the
Program. The determination shall set
forth Treasury’s basis for its
determination.
III . Paperwork Reduction Act
The collection of information
contained in this interim guidance has
been reviewed and approved by the
Office of Management and Budget
(OMB) in accordance with the
requirements of the Paperwork
Reduction Act (44 U.S.C. 3507(j)) under
control number 1505—0190. An agency
may not conduct or sponsor, and a
person is not required to respond to, a

VerDate Jan<31>2003

14:45 Mar 26, 2003

Jkt 200001

collection of information unless it
displays a valid control number
assigned by OMB.
This information is required in order
for Treasury to determine whether an
insurer has rebutted the presumption of
control. The collection of information is
mandatory with respect to an insurer
seeking to rebut the presumption of
control. The estimated average burden
associated with the collection of
information in this final rule is 40 hours
per respondent.
Comments concerning the accuracy of
this burden estimate and suggestions for
reducing this burden should be directed
to the Office of Financial Institutions

PO 00000

Frm 00102

Fmt 4703

Sfmt 4703

15041

Policy, Terrorism Risk Insurance
Program, Room 3160 Annex,
Department of Treasury, 1500
Pennsylvania Ave, NW., Washington,
DC 20220 and to OMB, Attention: Desk
Officer for the Department of the
Treasury, Office of Information and
Regulatory Affairs, Washington, DC,
20503.
Dated: March 21, 2003.
Wayne A. Abernathy,
Assistant Secretary of the Treasury.
[FR Doc. 03–7304 Filed 3–26–03; 8:45 am]
BILLING CODE 4810–25–P

E:\FR\FM\27MRN1.SGM

27MRN1