COLUMN	FOR IMMEDIATE RELEASE
State Rep. Nick Kotik D-Allegheny www.pahouse.com/kotik

July 2008

LEGISLATIVE ROUNDUP

The month of June is traditionally a very busy time at the state Capitol because enacting a new state budget is at the forefront of our agenda. During that time though, much work is also done on other important issues, many of which translate into bills that create new laws. Two issues immediately come to mind that I think are especially important to the residents of Pennsylvania and I would like to take this opportunity to tell you about them. They both aim to enhance the well-being of a multitude of Pennsylvanians.

First, both the state House and Senate recently passed legislation to support autistic children and their families by requiring insurance companies to provide coverage up to $36,000 for autistic children under the age of 21.

Under the new law, these children will get the health-care coverage they need and deserve. Coverage will include medically necessary diagnostic assessments, evaluations or tests, psychiatric and psychological care, rehabilitative care and therapeutic care to include speech, occupational or physical therapy services, and prescription drugs. Private health insurance companies will begin to cover medical services that are currently provided by Medical Assistance. Medical Assistance will not be eliminated; it will now serve as a safety net.

The measure also supports the families of autistic children. Because uncovered health care for a child with a disability can be extremely expensive, it can be devastating to a family's financial resources. This coverage will no doubt be a welcomed relief.

Also included in the new law is insurance coverage for colorectal cancer screening for people under 50 who are at risk for the disease. It also provides for the merger of two insurance companies in order to facilitate better rates and health-related procedures, and will allow for preventative measures like testing for life-threatening diseases that, without affordable access to proper screenings, people may not know they have.

Secondly, the General Assembly took a big step in reforming Pennsylvania's mortgage regulations. Losses due to mortgage defaults and foreclosures are something that we have looked at very carefully. I voted for a package of bills that will create procedures to help streamline the licensing and administrative process for mortgage brokers and bankers by creating a single license, and create a new project licensing category for mortgage originators -- those who serve as the main contact for borrowers -- regardless of the type of lending involved.

Often times, penalties are used by mortgage companies to deter consumers from taking advantage of low introductory rates rather than re-financing to another, more affordable loan. The new law excludes pre-payment penalties on residential mortgage loans of less than $218,000. It also permits the state's Banking Department to publicly release information after fines or legal actions have been taken against mortgage lenders.

Pennsylvania lacks a clear system of collecting data on mortgage foreclosures and, as a result, we do not have a good picture of regional and statewide trends relating to home foreclosures. The new plan will require lenders to send home foreclosure notices to the Pennsylvania Housing Finance Agency so that mortgage foreclosures can be tracked throughout the state in a more consolidated fashion. Also, interest rates on the PHFA's Homeowners Emergency Mortgage Assistance Program loans will be moved from the fixed rate of 9 percent to a floating rate that will adjust to economic conditions.

I am very happy with the progress we have made on both of these important issues that will ultimately affect the people of Pennsylvania. We have simplified the mortgage loan process and have adjusted it to work with the fluctuating economy. And families of children with autism can rest easy knowing that insurance companies must provide their loved ones with treatment.

As always, please contact me about these issues or any other state-related matter. Call my Coraopolis office at 412-264-4260 or send an e-mail to me through my Web site at www.pahouse.com/kotik.