2026-10-14 - Committee on Health (2)

>> GOOD MORNING. I WOULD LIKE TO CALL THIS ADDITIONAL MEETING TO ORDER. TODAY IS WEDNESDAY, OCTOBER 14, 2020 SIX. WE ARE IN ROOM 500 OF THE JOHN A. WILSON BUILDING. WE HAVE BEEN JOINED BY BRIANNE

NADEAU, CHARLES ALLEN, AND ZACHARY PARKER WHO IS JOINING IS VIRTUALLY. I WILL DESCRIBE EACH ONE TO PROVIDE TIME FOR DISCUSSION. THE FIRST IS BILL 26-707, THE ROAD AND EDUCATION MANAGEMENT YIELDS

RESULTS AMENDMENT ACT OF 2026. I INTRODUCED THIS LEGISLATION ON JUNE 22 ALONG WITH COUNCILMEMBERS ALLEN, FRUMAN, LEWIS GEORGE AND PINTO. THE COMMITTEE PRINT FOR BILL 26-707 IS A COMBINATION OF THE

BILL AS INTRODUCED AS WELL AS BUILD 26-492, THE RODENT ABATEMENT AND TRANSPARENCY RET AMENDMENT ACT OF 2025. I WILL REFER TO BOTH BILLS IN MY REMARK. BILL 26-492 WAS INTRODUCED IN NOVEMBER OF 2025 BY

COUNCILMEMBER LEWIS GEORGE AS WELL AS CAST MEMBERS NADEAU, PARKER, ALLEN, PINTO AND MYSELF AND THAT WAS REFERRED TO THE COMMITTEE ON HEALTH AS WELL AS THE COMMITTEE ON PUBLIC WORKS AND OPERATIONS.

THERE WAS A JOINT HEARING ON BOTH BILLS ON JULY 13, 2026. OUR COMMITTEE'S WORK CLOSELY TOGETHER AND AGREED THE MOST EFFICIENT WAY TO MOVE BOTH BILLS FORWARD WAS TO COMBINE THEM INTO A PIECE OF

LEGISLATION THAT I WANT TO THANK COUNCILMEMBER NADEAU AND THEIR TEAM FOR THE COMMITTEE PRINT. THE COMMITTEE PRINT PRIORITIZES UPSTREAM STRATEGIES TO PREVENT RODENT INFESTATIONS WHILE ALSO G RODENT

ABATEMENT. THE MAIN DRIVER OF RODENT INFESTATION IN THE DISTRICT AND OTHER MAJOR CITIES IS EASY AND ABUNDANT ACCESS TO FOOD. AS WE LEARNED IN THE DISNEY PIXAR CLASSIC RATATOUILLE, WHICH INSPIRED THE

BILL'S NAME, FOOD SCRAPS AND SOFT PLASTIC CONTAINERS MAKE FOR AN ALL-YOU-CAN-EAT BUFFET FOR RODENTS. TRASH MANAGEMENT IS PARTICULARLY CHALLENGING IN COMMERCIAL AREAS WHERE RESTAURANTS AND OTHER FOOD

ESTABLISHMENTS PRODUCE A SIGNIFICANT AMOUNT OF WASTE, BUT EITHER CANNOT AFFORD RODENT PROOF RECEPTACLES OR HAVE WASTE HAULERS USING SPECIFIC MODELS FOR DUMPSTERS. CHEMICAL RODENTICIDE ARE SHORT-TERM

SOLUTIONS FOR RODENT INFESTATIONS. DESPITE HEAVY APPLICATION, THE DISTRICT HAS THE FASTEST GROWING POPULATION OF MAJOR CITIES. RODENTICIDES TO POSE SIGNIFICANT HEALTH RISKS TO RESIDENTS, PARTICULARLY

CHILDREN AS WELL AS PETS AND ENDANGERED WILDLIFE. ONE LOCAL PEDIATRICIAN ESTIMATED TREATING 12 CASES OF PEDIATRIC HOSPITALIZATION TIED TO RODENTICIDE IN ONE YEAR. CITY WILDLIFE OUT 85% OF WILDLIFE

AUTOPSIED SAMPLES TESTED POSITIVE FOR RODENTICIDES, PARTICULARLY EAGLES, HAWKS AND BIRDS OF PREY. THE COUNCIL HAS MADE SEVERAL INVESTMENTS IN RODENT PREVENTION INCLUDING ROAD IMPROVE TRASH RECEPTACLES

IN PUBLIC SPACES, REPLACING TRASH CANS AT DPR AND DZ PUBLIC SCHOOL PROPERTIES UNDERGOING MODERNIZATION'S, AND AN ONGOING PILOT WITH THE DEPARTMENT OF PUBLIC WORKS. FIRST, IT DECREASES FOOD SERVICES

FOR RODENTS BY ESTABLISHING A COMMERCIAL CORRIDOR PILOT PROGRAM TO SUPPORT BUSINESS IMPROVEMENT DISTRICT AND MAIN STREETS AND ADDRESSING AREAS WITH HIGH RODENT POPULATIONS. THE COMMITTEE PRINT MOVES

THIS PILOT FROM D.C. HEALTH TO THE DEPARTMENT OF PUBLIC WORKS AS REQUESTED BY BOTH AGENCIES. THE BILL INCREASES TRANSPARENCY AND ACCOUNTABILITY BY REQUIRING D.C. HEALTH TO CREATE AN ACCESSIBLE RODENT

ABATEMENT DASHBOARD THAT INCLUDES DATA, UPDATED DATA UNTREATED RAT BURROWS, SERVICE REQUEST A RESPONSE TIMES AND ANC. D.C. HEALTH HELD A DASHBOARD IN JULY BUT IT IS LIMITED IN FUNCTIONALITY AND THIS

BILL WOULD STRENGTHEN A DASHBOARD AND MAKE IT MORE USER-FRIENDLY. WE ALSO CLARIFY WHAT TYPE OF CONDITIONS CAUSING RODENT ACTIVITY D.C. HEALTH HAS THE AUTHORITY TO ABATE, EVEN THOSE WITH IMPROPER

STORAGE, GARBAGE, DISCARDED MATERIALS, AND INOPERABLE VEHICLES, STANDING WATER, OR CAUSING WEEDS TO GROW TO A HEIGHT OF EIGHT INCHES OR MORE. WE AUTHORIZE D.C. HEALTH TO REQUIRE RODENT ABATEMENT PLANS

FOR PROPERTY OWNERS TO ELIMINATE RODENT ACTIVITY INFESTATION. WE CLARIFY THE D.C. HEALTH MAKE IMPOSE FINANCIAL PENALTIES WHEN THE AGENCY MUST CLEAN UP THE SITE THREE TIMES THE COST INCURRED TO THE

DISTRICT, UP TO THREE TIMES. IT REQUIRES THE DEPARTMENT OF PUBLIC WORKS TO REPORT ANY RODENT ACTIVITY OBSERVED DURING ENFORCEMENT OF TRASH VIOLATIONS TO D.C. HEALTH AND CLARIFIES D.C. HEALTH AND DPW

CAN SIMULTANEOUSLY ENFORCE LAWS AGAINST THE SAME PROPERTY WHEN IT IS CAUSING A RODENT INFESTATION. THE COMMITTEE PRINT REQUIRES D.C. HEALTH TO CONDUCT PUBLIC EDUCATION FOR EFFECTIVE RODENT PREVENTION

AND ABATEMENT STRATEGIES. IT REQUIRES THE DEPARTMENT OF PUBLIC WORKS TO NOTIFY ANC'S BEFORE PUBLIC LITTER CANS CAN BE REMOVED FROM RESIDENTIAL BLOCKS. AND IT PROTECTS CHILDREN, PETS AND WILDLIFE FROM

RODENTICIDE POISONING BY RESTRICTING THE USE OF ANTICOAGULANTS IN THE DISTRICT TO ONLY GOVERNMENT PROGRAMS CERTIFIED COMMERCIAL APPLICATION. THE PRINT MOVES THE ENFORCEMENT PROVISION FROM D.C. HEALTH

TO THE DEPARTMENT OF ENERGY AND ENVIRONMENT AT THE REPLACE OF -- REQUEST OF BOTH AGENCIES. WE ALSO ADDED FOREST OF REVISIONS TO THE RODENTICIDE RESTRICTIONS CONSISTENT WITH DOEE'S EXISTING ENFORCEMENT

OF RESTRICTING USE OF PESTICIDES, INCLUDING FINANCIAL PENALTIES AND A REFERRAL TO THE OFFICE OF THE ATTORNEY GENERAL. WE AUTHORIZE THE DEPARTMENT OF ENERGY AND ENVIRONMENT TO ADD ADDITIONAL TYPES OF

RODENTICIDES TO THESE RESTRICTIONS BASED ON DOCUMENTED EVIDENCE OF HARM TO CHILDREN OR WILDLIFE. THE CHANGE CAME AT THE REQUEST OF ADVOCATES APPOINTED TO A GROWING NUMBER OF EVIDENCE THAT OTHER TYPES

OF RODENTICIDES CAN BE HARMFUL TO CHILDREN, PETS, WILDLIFE IT SHOULD BE RESTRICTED. THE OFFICE OF THE CHIEF FINANCIAL OFFICER FOUND THE BILL WILL HAVE ADDITIONAL COSTS, INCLUDING 45,000 DOLLARS FOR

DPW FOR THE TRASH RECEPTACLE GRANTS. ONE FTE AND I.T. COST FOR D.C. HEALTH. TWO FTE'S AND OUTREACH FUNDS FOR DOEE. I WANT TO THANK COUNCILMEMBER LEWIS GEORGE AND NADEAU AND THEIR TEAMS FOR THE

PARTNERSHIP AND MOVING THIS BILL FORWARD. I WOULD ALSO LIKE TO THANK THE D.C. RESPONSIBLE RAT COALITION FOR THEIR SENSE OF PROVIDING RESEARCH AND DATA AND CONNECTING THE COMMITTEE WITH EXPERTS

THROUGHOUT THIS LEGISLATIVE PROCESS. WITH THAT, I WOULD LIKE TO SEE IF ANYBODY WANTS TO TALK ABOUT RATS THIS MORNING. COUNCILMEMBER ALLEN: THANK YOU SO MUCH. YES, WE CAN TALK ABOUT RATS, ABSOLUTELY. I

APPRECIATE THAT YOU HAVE BOTH BEEN SERIOUS AND PLAYFUL TO GET PEOPLE'S ATTENTION. BUT TO BE SERIOUS ABOUT FIGURING OUT SOLUTIONS. APPRECIATE YOUR TEAMS WORK ON THIS AS WELL AS THE PARTNERSHIP. I WANT

TO ASK A COUPLE QUESTIONS SO WE CAN HELP MAKE SURE WE UNDERSTAND HOW THIS LAW WILL ALLOW THE CITY TO ACT OR MOTIVATE DIFFERENTLY TO GO ABOUT THIS ISSUE. I ACTUALLY THINK WE HAVE A PHENOMENAL TEAM OF

PEOPLE WHO WORK FOR THE DEPARTMENT OF HEALTH RODENT ABATEMENT TEAM. THEY ARE IN MY ALLEYWAY WAY MORE OFTEN THAN THEY SHOULD BE. IT IS NO DIFFERENT THAN ALLEYS ALL ACROSS FIT THEY ARE RESPONSIVE. THEY

WORK HARD. THEY KNOW THE NEIGHBORHOODS AND THEY REMEMBER EACH REPEATED CALL. I HAVE HAD PLENTY OF CONVERSATIONS WITH THE ROAD ABATEMENT TEAM WHERE THEY SHARE SOME FRUSTRATIONS. YEP, WE WILL BE RIGHT

BACK HERE INTO ACE AGAIN AND TRY TO TREAT THIS AND KEEP AT IT. SPECIFICALLY, WHEN THERE IS A PROPERTY THAT IS NOT TAKING ANY CORRECTIVE ACTION, THEY ARE BOTH DEMORALIZED AND THAT SPREADS TO ALL AS

WELL. IF I UNDERSTAND HIS BILL CORRECTLY, FOR EXAMPLE, IF SOMEONE HAS SOMETHING ON THEIR PROPERTY -- IT COULD BE A DILAPIDATED GARAGE, IN UNSECURED PROPERTY BUT ESSENTIALLY HARBORING A NEST OF RATS.

WE GO TO TREAT IT OVER AND OVER. AFTER THREE TIMES OF DOH RODENT ABATEMENT COMING UP, THEY THEN REQUIRE THE PRIVATE PROPERTY OWNER TO HAVE A RODENT ABATEMENT PLAN WHERE THEY CAN START THAT PROCESS ON

THEIR FIRST TRIP TO REQUIRE RODENT ABATEMENT PLAN FOR THE PRIVATE PROPERTY OWNER. IS THAT THE FIRST OR THE THIRD? CHAIR HENDERSON: IT WOULD BE THE FIRST. COUNCILMEMBER ALLEN: AFTER REPEATED FAILURES

TO ADDRESS THAT RODENT PROBLEM, THIS LEGISLATION IS NOW EMPOWERING THE DEPARTMENT OF HEALTH TO ESSENTIALLY TAKE ACTION ON THAT PRIVATE PROPERTY FOR USING THIS EXAMPLE OF A PROPERTY -- LET'S USE A

DILAPIDATED GARAGE. THEY CAN SECURE THAT PROPERTY IN A WAY AND ESSENTIALLY ASSESS DAMAGES TO THE PRIVATE PROPERTY OWNER. CHAIR HENDERSON: YES. COUNCILMEMBER ALLEN: I KNOW SOME MIGHT FEEL THAT WILL BE

AN EXTREME STEP. ON THE OTHER HAND, WHEN WE'VE HAD MULTIPLE PROPERTIES THAT JUST DON'T EVER TAKE THE STEP NECESSARY, I THINK -- IF YOU ARE LEAVING IN UNSECURED PROPERTY WHERE WE WERE SEEING OTHER

ISSUES, WE EXPECT THE DEPARTMENT OF BUILDINGS TO COME IN AND HELP SECURE A BUILDING AND WE HAVE THE RIGHTS TO ASSESS DAMAGES TO THAT PRIVATE PROPERTY OWNER. I THINK IT IS -- ESPECIALLY FOR THOSE

ENDEMIC PROPERTIES WHERE IT CONTINUES TO HAPPEN OVER AND OVER, I THINK THIS WILL HOPEFULLY BE AN EFFECTIVE TOOL, UNDERSTANDABLY REQUIRING A ROAD ABATEMENT PLAN AT FIRST AND YOU ARE GIVING THAT PRIVATE

PROPERTY OWNER OPPORTUNITIES TO ADDRESS. CHAIR HENDERSON: I WANT TO CLARIFY THAT D.C. HEALTH ALREADY HAS THE ABILITY TO IMPOSE FINES. WE DON'T OFTEN DO SO BUT THIS IS CLARIFIED ALSO HOW MUCH THEY CAN

CHARGE IN TERMS OF A FINANCIAL PENALTY AND ALSO CLARIFY THAT BOTH D.C. HEALTH AND DPW CAN ENFORCE ON THE SAME PROPERTY SIMULTANEOUSLY WHICH HAD BEEN A CAUSE OF FRICTION IN THE PAST WHERE SOMEONE WOULD

SAY I AM ALREADY DEALING WITH DPW ON THIS AND NOW YOU ARE HITTING ME AS WELL. YES, WE WILL. COUNCILMEMBER ALLEN: THAT WILL HELP STREAMLINE THAT RESPONSE PROCESS WHICH IS GREAT. FOR ANYONE WHO HAS

BATTLED THIS IN THEIR OWN LOT OR ALLEY, WHAT WE HAVE SEEN IS ALL IT TAKES IS ONE PROPERTY THAT IS NOT DOING THEIR PART TO TRY TO HELP CONTAIN A RAT POPULATION. YOU CAN MAKE AN ALLEY THAT CAN BE A

SPACE WHERE KIDS CAN COME PLAY, NEIGHBORS CAN GATHER. ONCE THE SUN IS GOING DOWN, NOBODY GOES BACK OUT THERE. I APPRECIATE YOU PUTTING SOME FOCUS INTO THIS. I THINK IT SOUNDS LIKE WE WILL HAVE MORE

EFFECTIVE AND STREAMLINED TOOLS TO HELP OUR CITY GO AFTER THIS PROBLEM. BECAUSE NO MATTER WHAT NEIGHBORHOOD I HAVE BEEN, AM HEARING ABOUT IT. I APPRECIATE YOUR HARD WORK ON THIS. CHAIR HENDERSON:

THANK YOU. I WANT TO UNDERSCORE FOR FOLKS THAT RAT ABATEMENT REQUIRES MULTIPLE DIFFERENT TYPES OF STRATEGIES. THIS IS NOT A PANACEA. THERE ARE THE THINGS WE HAVE BEEN DOING ANY TO CONTINUE TO DO BUT

THIS IS TAKING US ONE STEP FURTHER. THANK YOU FOR YOUR PARTNERSHIP ON THIS. COCHAIRING THAT HEARING WAS REALLY ENLIGHTENING. WE HEARD SOME VERY IMPORTANT TESTIMONY FROM EXPERTS WHO UNDERSTAND WHAT IT

TAKES TO GET RAT POPULATIONS UNDER CONTROL. I THINK WE ARE REALLY LUCKY THAT FOLKS ARE WILLING TO COME TO THE TABLE AND LEND THEIR EXPERTISE IN THAT REGARD. THIS BILL MAKES SOME IMPORTANT CHANGES. I

AM PROUD TO SUPPORT IT TODAY. I ALSO WANT TO SAY THAT WE HAVE TO SET SOME BIG, HAIRY, AUDACIOUS GOALS AROUND FOOD WASTE AND TRASH CONTAINMENT AND STARVING THE RATS ESSENTIALLY OF THEIR FOOD SOURCE

THROUGH OUR CHOICES AND HABITS IF WE ARE GOING TO GET THE RAT POPULATION UNDER CONTROL. THE HEALTH COMMITTEE CANNOT DO ANY OF THAT FROM YOUR PERCH SO DPW HAS TO TAKE IT ON AND WE HAVE TO MAKE SURE WE

ARE MAKING THOSE INVESTMENTS. COUNCILMEMBER HENDERSON HAS MADE SOME OF THOSE INVESTMENTS BY SENDING FUNDING TO OUR COMMITTEE TO MAKE SURE WE ARE INVESTING IN RAT PROOF LITTER CAN SPEED UP THERE IS SO

MUCH MORE TO DO. I REALLY LOVE THE WAY THIS BILL WILL BE MORE COORDINATION BETWEEN DPW AND DOH AND INSISTING THAT HAPPENS, CONSISTENTLY. STREAM IN ANY PART OF THE CITY. WE SHOULD HAVE FOLKS REPORTING

IN THAT WE NEED RAT MANAGEMENT AND RAT STRATEGIES IN THIS AREA. WE ALSO NEED THE PUBLIC TO HELP OWN THE SOLUTIONS. IF WE ARE NOT WILLING TO CHANGE OUR HABITS, IF WE ARE NOT WILLING TO GET OUR FOOD OUT

OF OUR YARDS, WE WILL NEVER SOLVE THIS PROBLEM. LOTS TO DO. THIS BILL MAKES ME HOPEFUL WE ARE MOVING IN THE RIGHT DIRECTION AND I KNOW THAT THE BRIGHTEST MINDS IN OUR CURRENT AND FUTURE GOVERNMENT

WILL CONTINUE WORKING ON THIS SO THANK YOU FOR YOUR LEADERSHIP. CHAIR HENDERSON: THANK YOU. ANYONE ELSE? OK. COUNCILMEMBER PARKER, DID YOU WANT TO? ALL RIGHT. I WILL MOVE THE DRAFT REPORT AND PRINT

FOR BILL 26-0707. ALL IN FAVOR, POLICE SAY AYE. AYE. CHAIR HENDERSON: ANY OPPOSED? LET THE RECORD REFLECT THE AYES HAVE IT AND THE MEASURE PASSES UNANIMOUSLY. WE MOVE ON TO BILL 26-523, THE

STREAMLINING MEDICAID CREDENTIALING AMENDMENT ACT OF 2026. I INTRODUCED THIS LEGISLATION IN 2025. THE BILL WAS REFERRED TO THE COMMITTEE ON HEALTH AND WE HELD A HEARING ON MARCH 25, 2026. IF A

PROVIDER WANTS TO SERVE IN THE MEDICAID PROGRAM, THEY FIRST HAVE TO ENROLL WITH THE DEPARTMENT OF HEALTH CARE FINANCE AND GO THROUGH A CREDENTIALING PROCESS. CREDENTIALING OFFERS SERVICES TO MEDICARE

PATIENTS THAT THE HEALTH CARE PROFESSIONALS ARE PROPERLY QUALIFIED TO DELIVER SAFE, EFFECTIVE AND APPROPRIATE CARE. UNDER THE CURRENT SYSTEM, A PROVIDER HAS TO BE CREDENTIALED WITH EACH MANAGED CARE

ORGANIZATION WHO MAY ASK FOR THE SAME INFORMATION BUT IN DIFFERENT WAYS. THIS IS ADMINISTRATIVELY BURDENSOME AND TIME-CONSUMING, WASTING TIME OF PROVIDERS WHEN THEY CAN ACTUALLY PROVIDE PATIENT CARE.

THE COMMITTEE PRINT DOES A FEW DIFFERENT THINGS. FIRST, IT REQUIRES THE DEPARTMENT OF HEALTH CARE FINANCE TO DEVELOP A SINGLE SEEKING TO BE CREDENTIALED BY MEDICAID. IT STRENGTHENS THE CREDENTIALING

TIMELINES BY REQUIRING HEALTH CARE FINANCE TO RESPOND WITHIN 10 DAYS AND INFORM THEM OF ANY MISSING INFORMATION THAT THE APPLICATION MAY NOT BE COMPLETE. THE COMMITTEE PRINT OFFERS HEALTH CARE FINANCE

TO ISSUE CREDENTIALING DETERMINATIONS WITHIN 30 DAYS OF RECEIVING THE COMPLETE APPLICATION. IF HEALTH CARE FINANCE REQUIRES ADDITIONAL TIME, THE AGENCY MUST PROVIDE THE PROVIDER WITH THE ESTIMATED

DATE OF DETERMINATION. THIS IS NOT INTENDED TO EXPEDITE THE PROFITS -- THE PROCESS OR TO IMPROVE CREDENTIALS WITHOUT CONDUCTING A THOROUGH CHECK OF THE APPLICANT. RATHER, IT IS SENT TO STANDARDIZE

TIMELINES. THE COMMITTEE PRINT ALLOWS FOR PROVIDERS TO NOT RE-CREDENTIALED IF THEY CHANGE EMPLOYERS, PROVIDED THE NEW EMPLOYER IS ALSO PARTICIPATING ENTITY WITH THE MCO'S FOR IT REMOVES THE PROVISION

IN THE BILL THAT ALLOWS FOR TEMPORARY CREDENTIALING AFTER HEALTH CARE FINANCE TESTIFIED THIS WOULD INCREASE RISK FOR THE OVERALL PROGRAM. THEY PROVIDERS ARE GRANTED TEMPORARY CREDENTIALS BUT HAVE

CREDENTIALS REVOKED -- HEALTH CARE FINANCE TO COORDINATE WITH THE DEPARTMENT OF INSURANCE SECURITIES AND BANKING TO ENSURE THE CREDENTIALING APPLICATION IS CONSISTENT WITH THE UNIFORM CREDENTIALING

FORM. FINALLY, WE CHANGE THE EFFECTIVE DATE FOR JULY TO JANUARY 1 TO JANUARY FIRST, 2028 TO GIVE HEALTH CARE FINANCE SUFFICIENT TIME TO IMPLEMENT THESE CHANGES. THE O CFO CONFIRMED IT WOULD COST $4

MILLION IN FY 2027. AND $16 MILLION OVER THE FINANCIAL PLAN. IN ORDER TO IMPLEMENT THIS BILL. THIS FUNDING IS ENTIRELY FOR HEALTH CARE FINANCE TO IMPLEMENT A NEW VENDOR PROJECT. I WANT TO THANK THE

PRIMARY CARE ASSOCIATION FOR THEIR EFFICACY IN RAISING THIS IMPORTANT ISSUE TO HELP STRENGTHEN THE MEDICAID PROGRAM FOR PROVIDERS AND INCREASED ACCESS FOR PATIENTS AND THEIR SUPPORT AROUND DEVELOPING

THIS BILL. WITH THAT, I WILL SEE IF ANYBODY HAS ANY COMMENTS. OK, HEARING NONE COME I MOVE THE DRAFT REPORT AND PRINT FOR BILL 26-523 IN BLOCK. ALL IN FAVOR, POLICE SAY AYE -- PLEASE SAY AY E. AYE.

CHAIR HENDERSON: LET THE RECORD REFLECT THAT PASSED UNANIMOUSLY. FINAL BILL FOR OUR AGENDA TODAY IS BILL 26-588, THE CAPTIVE INSURANCE COMPANY AMENDMENT ACT OF 2026. THIS WAS INTRODUCED IN DECEMBER

2020 FIVE BY CHAIRMAN MENDELSON ON BEHALF OF THE MAYOR AND WAS REFERRED ORIGINALLY TO THE COMMITTEE ON BUSINESS AND ECONOMIC DEVELOPMENT. FOLLOWING THE DISSOLUTION AND SUBSEQUENT TRAP -- TRANSFER TO

THE COMMITTEE ON HEALTH, THE BITTY WAS RE-REFERRED TO US IN FEBRUARY OF THIS YEAR AND WE HELD A HEARING ON IT IN JUNE OF 2026. CAPTIVE INSURANCE COMPANIES HAVE EXISTED FOR OVER 75 YEARS. INITIALLY

CREATED TO ALLOW A PARENT COMPANY TO ENSURE THEIR OWN RISK OR RISK OF THEIR OWNERS, CAPTIVE INSURANCE HAS EVOLVED OVER THE YEARS TO EXTEND COVERAGE, RELIABILITY ACROSS INDUSTRIES AND BUSINESS TYPES.

CAPTIVE INSURANCE PROVIDES BUSINESSES WITH A COST-SAVING WAY TO UNDERWRITE RISK WHICH NOT TYPICALLY COVERED BY STANDARD INSURANCE, I.E. CYBERSECURITY. IT ALSO ALLOWS THEM TO TAKE ADVANTAGE OF TAX

DEDUCTIONS OFFERED BY THE IRS AND PROTECT ASSETS FROM BEING SEIZED AND POTENTIAL BANKRUPTCY. THE CAP THIS INDUSTRY HAS EXPANDED TO SEVERAL TYPES OF CAP THE FORMATIONS INCLUDING SINGLE-PARENT, GROUP

ASSOCIATION, SEGREGATED CELL AND RISK RETENTION GROUPS. ORGANIZATIONS THAT USE CAPTIVES RANGE FROM LARGE MULTINATIONAL CORPORATIONS TO NONPROFITS TO MEMBER OWNED BUSINESSES THAT SPEND INDUSTRY

VERTICALS FOR HEALTH CARE TO REAL ESTATE. THE DISTRICT HAS BEEN A LEADER AND HOME TO CAPTIVES FOR THE LAST 25 USE FOR THE DISTRICT RECEIVES PREMIUM TAXES AND FEES FOR CAPTIVES ANNUALLY WHICH ARE

TRANSFERRED TO THE GENERAL FUND AND USED FUND VARIOUS PROGRAMS AND SERVICES. THE DISTRICT HAS ATTRACTED MORE CAPTIVES TO DOMICILES OF THE DISTRICT BY ALLOWING ALL CAPTIVE ENTITIES TO PERFORM,

STREAMLINING THE APPLICATION PROCESSES. THIS BILL ALLOWS THE DISTRICT WITH UPDATED BUSINESSES TO OPERATE CAPTIVES, PROVIDING LOCAL BUSINESSES AND EFFICIENT WAY TO ENSURE RISK. THE COMMITTEE PRINT

UPDATE REQUIREMENTS FOR PROTECTIVE SELF CAPTIVE INSURERS LIDDED TO FORMATION CAPITAL APPLICATION, TRANSACTIONS, BUSINESSES, TAXES ON PREMIUMS AND ANNUAL REPORTS. WE UP-TO-DATE THE REQUIREMENTS FOR

ACTIVE COMPANIES. CAPTIVE BECOMES ENACTED WHEN IT STARTS UNDERWRITING RISK OR ISSUING INSURANCE POLICIES PREVIOUSLY, CAP AS WOULD HAVE BEEN NOTIFIED TO ENTER INACTIVE STATUS IN THIS BILL GRANTS THE

COMMISSIONER AUTHORITY DEAN ENTITIES INACTIVE WITHOUT ACTIVITY. IT EXPEDITES THE PROCESS FOR PROTECTED CELLS. PROTECTIVE SELF CAPTIVE INSURANCE ALREADY OPERATING IN THE BUSINESS. SLIGHTLY INCREASES

THE EXPERT TIMELINE TO ALLOW THEIR STAFF ADEQUATE TIME. THE BILL GRANTS MAKING AUTHORITY TO THE MAYOR TO ISSUE NEW RULES TO GOVERN CAPTIVE INSURERS PRESENCE OF RISK RETENTION GROUPS. THE FUNDS ARE

SUFFICIENT FOR IMPLEMENTATION OF THIS BILL. ANY DISCUSSION? HEARING NONE, I MOVE THE DRAFT REPORT AND PRINT FOR BILL 26-588 WITH LEE FOR STAFF TO MAKE ANY TECHNICAL OR CONFORMING CHANGES. ALL IN

FAVOR, PLEASE SAY AYE. AYE. CHAIR HENDERSON: BUT THE RECORD REFLECT THE AYES HAVE IT AND THE MEASURE PASSES UNANIMOUSLY. THIS DOES CONCLUDE OUR MEETING TODAY. AT 11:00 A.M., FOLLOWING THIS, THE

COMMITTEE WILL HOLD A PUBLIC HEARING ON TWO MEASURES BEFORE THE COMMITTEE. THE HEALTH CARE FACILITIES REGULATION AMID ACTIVE 2026 AND THE HEALTH BENEFIT HEALTH INSURANCE AUTHORITY ACTIVE 2026. WITH NO

FURTHER ACTIVITY BEFORE THE COMMITTEE AT THIS TIME, THIS MEETING IS ADJOURNED. THANK YOU, COLLEAGUES.