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Montana Administrative Register Notice 34-8 No. 22   11/21/2007    
    Page No.: 1864 -- 1869
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��������������������� BEFORE THE DEPARTMENT OF MILITARY AFFAIRS

�������������������������������������� OF THE STATE OF MONTANA

In the matter of the adoption of New Rules I through V pertaining to reimbursement for life insurance premiums paid by Montana reserve component service members serving outside Montana in a contingency operation and the repeal of ARM 34.7.101 through 34.7.106 pertaining to reimbursement for life insurance premiums paid by Montana reserve component service members serving outside Montana in a contingency operation

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NOTICE OF PROPOSED ADOPTION AND REPEAL

NO PUBLIC HEARING CONTEMPLATED

TO:�All Concerned Persons

1.�On January 18, 2008, the Department of Military Affairs proposes to adopt and repeal the above-stated rules.

2.�The Department of Military Affairs will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice.�If you require an accommodation, contact the department no later than 5:00 p.m., December 14, 2007, to advise us of the nature of the accommodation that you need.�Please contact Karen Revious, Administrator, Centralized Services, Department of Military Affairs, ATTN: Centralized Services, P.O. Box 4789, 1900 Williams Street, Fort Harrison, Montana 59636-4789; telephone (406) 324-3330; fax (406) 324-3335; or e-mail [email protected].

3.�� On August 23, 2007, the Department of Military Affairs published MAR Notice No. 34-6 at page 1154 of the 2007 Montana Administrative Register, issue no. 16.�The earlier notice also concerned proposed changes on rules governing reimbursement for life insurance premiums paid by service members.�No action has been taken on the proposed changes because the Committee on State Administration and Veterans' Affairs has requested that the proposed changes be renoticed to correct deficiencies in the earlier notice.�This notice is published to again propose the changes, with modifications to correct the deficiencies.�No action will be taken on the proposals of the earlier publication.

��������� 4. ��The rules as proposed to be adopted provide as follows:

NEW RULE I�DEFINITIONS�For the purposes of this chapter, the following definitions apply:�

(1)�"Servicemembers' group life insurance (SGLI)" means the group life insurance program established by 38 USC 1965 through 1980.�

AUTH: 10-1-105, 10-1-1114, MCA

IMP: 10-1-1111, 10-1-1113, 10-1-1114, MCA

REASON:�In 2005, the 59th legislative session enacted 10-1-1101 through 10-1-1104, MCA, requiring rules be adopted to implement the reimbursement program.�These statutes terminated by the occurrence of the contingency providing for termination upon additional federal resources for the life insurance premiums.�The allocation of the additional resources occurred on February 28, 2006, effectively terminating the statutory provisions.�However, House Bill 155 codified at 10-1-1111 through 10-1-1114, MCA, passed during the 60th legislative session in 2007, reenacted the reimbursement program and established a new reimbursement amount requiring the implementation of new administrative rules.�This rule, and the rules that follow, are proposed to reimplement the program under the new legislation.�As with the previous rule on this topic, ARM 34.7.101, the department proposes to adopt a rule defining "Servicemembers' group life insurance."�The reason that "Servicemembers' group life insurance plan," should be defined as set out in proposed NEW RULE I is that these rules directly concern this particular insurance plan as defined by federal statutes, and the applicability of the definition to these rules should be specified within the rules.�HB 155 provided authority for reimbursement for additional coverage under the SGLI program, but did not provide a specific reference to the federally defined plan.�There should be a rule that specifies the plan to provide consistency in these rules and to ensure consistent interpretation with the federal program. The approach used with defining the plan is to refer to the federal statutes.�This approach was chosen because the best way to define the plan is to refer to the controlling federal statutes.

��������� NEW RULE II�ELIGIBILITY(1)�A service member meeting the eligibility requirements�set out in 10-1-1114, MCA, is eligible for reimbursement of SGLI premiums paid under the servicemembers' group life insurance program.

AUTH: 10-1-105, 10-1-1114, MCA

IMP: 10-1-1111, 10-1-1113, 10-1-1114, MCA

REASON:�As discussed in the previous reason section, the program for reimbursement of life insurance premiums has been reenacted.�The proposed NEW RULE II should be adopted because the best way to implement the eligibility requirements is to refer to the governing statute.�This approach assures that the rule is consistent with the statute, as required by 2-4-305(6)(a), MCA.�Another approach would be to insert the eligibility criteria from the statute into the rule, but this approach would unnecessarily repeat the statutory criteria, thus violating the mandate of 2-4-305(2), MCA.

��������� NEW RULE III�LIMITATIONS ON REIMBURSEMENT�(1)�The maximum amount of premiums to be reimbursed may not exceed the maximum amount provided in 10-1-1114, MCA.

��������� (2)�If a service member is on active duty in a contingency operation for any part of a month, and pays SGLI premiums that month, the entire premium paid for that month will count for purposes of reimbursement.�There will be no proration for any part of any month.

AUTH: 10-1-105, 10-1-1114, MCA

IMP: 10-1-1111, 10-1-1113, 10-1-1114, MCA

REASON:�As discussed in the reason sections above, this proposed rule also seeks to implement a portion of the reenactment of the reimbursement program under HB 155.�The first section of the rule should be adopted because the best way to implement the statutory limitation on reimbursement is to adopt a rule that requires compliance with the statute, and while the department considered placing the language from the statute into the rule, a better approach is to refer to the requirements of the statute because 2-4-305(2), MCA, requires that rules not unnecessarily repeat statutory language.�The second section of the rule should be adopted to direct the department to make the full payment even if the active duty assignment is not for the full month.�The department could have taken an approach to prorate the reimbursement, but chose to fully reimburse the servicemember in recognition of their service in support of a contingency operation including any month in which service in the contingency operation occurred.��

��������� NEW RULE IV�APPLICATION FOR REIMBURSEMENT�(1)�A service member may request reimbursement by completing DMAMT form DMA 10-1 (Application for Service Member Reimbursement of Servicemembers' Group Life Insurance Premiums), and submitting it to the Department of Military Affairs, ATTN: Centralized Services, P.O. Box 4789, Ft. Harrison, MT 59636-4789.

��������� (2)�A service member must submit DMAMT form DMA 10-1 within 12 months of demobilization from active duty service in a contingency operation or from the date that these administrative rules become effective, whichever is later, to receive reimbursement.�

AUTH: 10-1-105, 10-1-1114, MCA

IMP: 10-1-1111, 10-1-1113, 10-1-1114, MCA

REASON:�This proposal also seeks to implement the program recreated by HB 155 (10-1-1111 through 10-1-1114, MCA) as detailed above in the reason sections of the other proposed rules.�A reasonable and necessary requirement in implementing the program under HB 155 is to require submission in writing using a specific form as identified in (1) of the proposed rule.�In particular, eligibility determinations should be based on written applications with the information provided by the applicant.�The rule will help to ensure that required information is obtained and recorded.�Other approaches, e.g., an interview process via person or telephone, would result in a nonstandardized process.�A standard process based on paperwork required as a matter of properly adopted administrative rules will assist both the department and potential applicants because the specific information that needs to be provided will be set out in a regularly used form.�With respect to (2) of proposed NEW RULE IV, the department proposes as reasonable and necessary the adoption of the time limitation for accepting applications because a time limitation provides closure for fiscal management of funds allocated for this program.�The department chose 12 months from the time of demobilization as an adequate amount of time for a servicemember to integrate back into his/her civilian life without fearing s/he will lose out on a benefit if s/he does not take immediate action.�Other time frames could have been chosen, such as three months or six months, but the department chose 12 months as it gives plenty of integration time and is likely easily remembered.�

��������� NEW RULE V�FURTHER APPROPRIATION REQUIRED

(1)�Reimbursement beyond June 30, 2009, is contingent upon further appropriation by the Montana Legislature for continuance of the reimbursement program.

AUTH: 10-1-105, 10-1-1114, MCA

IMP: 10-1-1111, 10-1-1113, 10-1-1114, MCA

REASON:�House Bill 155 authorized appropriations for fiscal years 2007, 2008, and 2009, and unless further appropriations are authorized the reimbursement program cannot continue.�In particular, section 6, Chapter 373, of the Laws of Montana, 2007 (Sec. 6 of HB 155) provided that funds were appropriated only through fiscal year 2009, and that any appropriated funds must revert to the general fund at the end of the year. �It is reasonable and necessary for implementing this part of the legislation to adopt a rule that explains and specifically implements the uncodified budget provision.�It is also reasonable and necessary to indicate that there may be additional funding.�In recognition of these purposes for adoption of the rule, the best approach will provide for adoption of a rule specifying that upon termination of the current appropriation, reimbursement will continue if refunding occurs.�Further appropriations may then be implemented by amendment of this rule.

5.�The department proposes to repeal the following rules:

34.7.101�DEFINITIONS found at page 34-1105 of the Administrative Rules of Montana.

AUTH: 10-1-1104, MCA

IMP: 10-1-1104, MCA

34.7.102 �ELIGIBILITY found at page 34-1105 of the Administrative Rules of Montana.

AUTH: 10-1-1104, MCA

IMP: 10-1-1104, MCA

34.7.103 �LIMITATIONS ON REIMBURSEMENT found at page 34-1105 of the Administrative Rules of Montana.

AUTH: 10-1-1104, MCA

IMP: 10-1-1104, MCA

34.7.104 �APPLICATION FOR REIMBURSEMENT found at page 34-1105 of the Administrative Rules of Montana.

AUTH: 10-1-1104, MCA

IMP: 10-1-1104, MCA

34.7.105�TERMINATION DATE; FURTHER APPROPRIATION REQUIRED found at page 34-1106 of the Administrative Rules of Montana.

AUTH: 10-1-1104, MCA

IMP: 10-1-1104, MCA

34.7.106�TERMINATION DATE; UNITED STATES ASSUMES PAYMENT OF PREMIUMS OR INCREASES DEATH GRATUITY found at page 34-1106 of the Administrative Rules of Montana.

AUTH: 10-1-1104, MCA

IMP: 10-1-1104, MCA

REASON:�The 59th legislative session enacted 10-1-1101 through 10-1-1104, MCA, requiring rules be adopted to implement the reimbursement program.�These statutes terminated as required by the occurrence of the contingency providing for termination upon additional federal resources for the life insurance premiums.�The allocation of the additional resources occurred on February 28, 2006, effectively terminating the statutory provisions, thus requiring the repeal of the administrative rules implementing the program because the rules are no longer authorized by the statutes.�

6.�Concerned persons may submit their data, views, or arguments concerning the proposed actions in writing to: Karen Revious, Administrator, Centralized Services, Department of Military Affairs, ATTN: Centralized Services, P.O. Box 4789, 1900 Williams Street, Fort Harrison, Montana 59636-4789; telephone (406) 324-3330; fax (406) 324-3335; or e-mail [email protected], and must be received no later than 5:00 p.m., December 21, 2007.

7.�If persons who are directly affected by the proposed actions wish to express their data, views, or arguments orally or in writing at a public hearing, they must make written request for a hearing and submit this request along with any written comments to Karen Revious at the above address no later than 5:00 p.m., December 21, 2007.

8.�If the agency receives requests for a public hearing on the proposed actions from either 10% or 25, whichever is less, of the persons directly affected by the proposed actions; from the appropriate administrative rule review committee of the Legislature; from a governmental subdivision or agency; or from an association having not less than 25 members who will be directly affected, a hearing will be held at a later date.�Notice of the hearing will be published in the Montana Administrative Register.�Ten percent of those directly affected has been determined to be 425 based on the number of people or families eligible for the fund.

9.�The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices.�Notices will be sent by e-mail unless a mailing preference is noted in the request.�Such written request may be sent or delivered to the contact person in 6 above or may be made by completing a request form at any rules hearing held by the department.

10.�An electronic copy of this Proposal Notice is available through the Secretary of State's web site at http://sos.mt.gov/ARM/Register.�The Secretary of State strives to make the electronic copy of the Notice conform to the official version of the Notice, as printed in the Montana Administrative Register, but advises all concerned persons that in the event of a discrepancy between the official printed text of the Notice and the electronic version of the Notice, only the official printed text will be considered.�In addition, although the Secretary of State works to keep its web site accessible at all times, concerned persons should be aware that the web site may be unavailable during some periods, due to system maintenance or technical problems.

11.�The bill sponsor notice requirements of 2-4-302, MCA, apply and have been fulfilled.�The primary bill sponsor was notified on October 3, 2007, by regular mail.

/s/�John C. Melcher������������������������� /s/�Randall D. Mosley�������

John C. Melcher�������������������������������Randall D. Mosley

Assistant Attorney General����������������The Adjutant General

Rule Reviewer����������������������������������Department of Military Affairs

Certified to the Secretary of State November 13, 2007.

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