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Bill

H 3487

Department of Insurance governance

2025-2026 Regular Session Introduced by Leon Stavrinakis

SC draft would elect the Director of Insurance to a four-year term (first election 2028), shifting regulator from appointment to elected leadership.

Scrivener's error corrected
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Bill Summary · H 3487

Note on source material and scope
- The file provided appears to combine two different legislative texts from different jurisdictions: (1) a Massachusetts House bill (House No. 3487 / Docket 3132) to establish a special commission to study “double” utility poles, and (2) a South Carolina statute draft to make the Director of the Department of Insurance an elected official. The bill number and metadata in your request (H 3487; “Department of Insurance governance”) correspond more closely to the South Carolina text, while much of the file content and sponsors (Representative Fiola, docket 3132) are for the Massachusetts pole‑study bill. I summarize both below and recommend verifying which specific bill and jurisdiction you need.

1) Massachusetts: “An Act establishing a special commission to investigate double utility poles”
Purpose and intent
- Create an independent special commission to investigate the prevalence, causes, removal processes, and regulatory barriers associated with so‑called “double poles” (old/duplicate utility poles remaining after services transferred to new poles).

Key provisions and scope
- Commission charter: inventory double poles (count and duration in place); examine reasons for delays in removal after service transfers; review processes/timelines for removal; assess enforcement of Section 34B, Chapter 164 (timely removal); investigate barriers and cost/ liability issues; evaluate attachment‑management systems (e.g., NJUNS); address unlicensed attachments and registration; consider indemnification agreements, ratepayer cost recovery, and potential DPU and Department of Telecommunications & Cable rulemaking.
- Membership: 17 members including state officials (Secretary of Admin & Finance or designee; DPU chair or designee; Commissioner of Telecommunications & Cable or designee), legislative committee chairs, five legislative appointees (house/senate members including minority leader appointees), three municipal officials (governor‑selected), one utility pole owner, one attacher, the Massachusetts Municipal Association executive director (or designee), and one private citizen appointed by the governor to serve as chair (must not be an electric or telecom utility employee).
- Reporting deadline: final report with recommendations and proposed legislation due to legislative clerks and relevant committees by June 30, 2026.

Affected parties / likely impacts
- Electric and telecommunications utilities, municipal light departments, attachers (telecom companies, cable, etc.), municipalities, ratepayers, and state regulators (DPU, Dept. of Telecommunications & Cable). Potential outcomes include new enforcement practices, regulatory changes, clarified cost allocation, and improved pole‑attachment coordination.

Procedural / timeline notes
- Introduced/prefiled Jan–Feb 2025; committee referrals and hearing scheduled (hearing 06/04/2025); reporting date extended to Dec 3, 2025; scrivener’s error corrected 02/07/2025.

2) South Carolina: Draft act to make the Director of the Department of Insurance an elected office
Purpose and intent
- Convert the Director of the Department of Insurance from a Governor‑appointed position to an elected statewide office, specify term, qualifications, fundraising restrictions, vacancy rules, and related code amendments.

Key provisions and changes
- New Section 38‑3‑105: Director elected by voters to a four‑year term beginning at noon on the first Wednesday after the second Tuesday in January following election; may succeed self; must be ≥30 years at term start; may not hold another public office while serving.
- Campaign finance restriction: candidates may not accept contributions or things of value from regulated insurance companies, their subsidiaries, insurance agents, or other regulated insurance professionals (explicitly includes employees, immediate family members, officers, directors, managers).
- Vacancy: Governor fills unexpired portion.
- Amends SC Code sections 1‑30‑10, 38‑1‑20, 38‑3‑10, and 38‑3‑100 to reflect election status, modify definitions, and adjust removal/ethics language (e.g., severance of industry ties).
- Effective date / election timeline: Act generally takes effect Jan 1, 2028; first election for the Director occurs in the 2028 statewide election; incumbent continues until successor qualifies.

Affected parties / likely impacts
- State executive structure and governance of insurance regulation; insurance industry stakeholders; candidates for the office subject to new campaign finance restrictions; potential shift in regulatory independence, accountability, and politicization; legal and administrative implications for appointment/removal processes.

Procedural / timeline notes
- Draft included multiple identical filings dated Feb–Dec 2024–2025; listed effective date Jan 1, 2028 and first election 2028.

Recommendation
- Please confirm which jurisdiction and specific bill number you want summarized or tracked (Massachusetts H.3487 / House Docket 3132 vs. South Carolina draft statute). I can then produce a focused, jurisdiction‑specific brief with legislative status and likely regulatory/economic impacts.

Compiled from official sources — confirm details with the bill’s official record.

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