HB 760 — An Act amending the act of June 2, 1915 (P.L.736, No.338), known as the Workers' Compensation Act, in liability and compensation, further providing for compensation payable in periodical installments.

PRIOR PRINTER'S NO.

709 THEPRINTER'S GENERALNO. ASSEMBLY OF PENNSYLVANIA HOUSE BILL Session of No.

760963 2023THE INTRODUCEDGENERAL BYASSEMBLY PISCIOTTANO,OF VENKAT,PENNSYLVANIA HILL-EVANS,HOUSE ROZZI,BILL MADDEN,Session HADDOCK, DELLOSO, KHAN, PARKER AND CIRESI, MARCH 30, 2023G, REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, MARCH 30, 2023 AN ACT Amending the act of JuneNo. 2, 1915 (P.L.736, No.338), entitled "An act defining the liability of an employer to pay damages for injuries received by an employe in the course of employment;

760 2023 INTRODUCED BY PISCIOTTANO, VENKAT, HILL-EVANS, ROZZI, MADDEN, HADDOCK, DELLOSO, KHAN, PARKER, CIRESI, DAWKINS, DEASY,ERG, GREEN, CONKLIN AND NEILSON, MARCH 30, 2023 AS REPRESENTATIVES, AS AMENDED, APRIL 24, 2023RY, HOUSE OF AN ACT Amending the act of June 2, 1915 (P.L.736, No.338), entitled "An act defining the liability of an employer to pay damages for injuries received by an employe in the course of employment;

and prescribing penalties," in liability and compensation,periodical furtherinstallments.oviding providing for compensation payable in periodicalThe installments.General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

(b) At the request of the employe, person entitled to <-- compensation under section 307, employer or insurer, compensation shall be made by electronic fund transfer to the account of the person entitled to compensation or to a debit account provided to the person.

(B) INSTALLMENTS OF COMPENSATION PAYABLE UNDER THIS ARTICLE <-- MUST BE PAID TO THE PERSON ENTITLED TO COMPENSATION BY DIRECT DEPOSIT, SUBJECT TO THE FOLLOWING:

(1) THE INSURER OR SELF-INSURED EMPLOYER PERMITS PAYMENT OF COMPENSATION BY DIRECT DEPOSIT.

THE FOLLOWING SHALL APPLY:

(I) AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, AN INSURER OR SELF-INSURED EMPLOYER MAY PERMIT PAYMENT OF COMPENSATION BY DIRECT DEPOSIT.

IF THE INSURER OR SELF-INSURED EMPLOYER PERMITS PAYMENT BY DIRECT DEPOSIT, THE OPTION SHALL BE AVAILABLE TO ALL PERSONS ENTITLED TO COMPENSATION FROM THE INSURER OR SELF- INSURED EMPLOYER.

(II) NO LATER THAN ONE YEAR AFTER THE EFFECTIVE DATE OF THIS SUBSECTION, ALL INSURERS AND SELF-INSURED EMPLOYERS SHALL PERMIT PAYMENT OF COMPENSATION BY DIRECT DEPOSIT.

(2) THE INSURER OR SELF-INSURED EMPLOYER SHALL NOTIFY THE PERSONS ENTITLED TO COMPENSATION OF THE OPTION TO RECEIVE COMPENSATION BY DIRECT DEPOSIT.

NOTIFICATION SHALL BE SENT BY FIRST CLASS MAIL AND INCLUDE THE DIRECT DEPOSIT AUTHORIZATION FORM UNDER SUBSECTION (C).

NOTIFICATION SHALL BE SENT IN ACCORDANCE WITH THE FOLLOWING:

(I) IMMEDIATELY UPON THE AVAILABILITY OF DIRECT DEPOSIT BY THE INSURER OR SELF-INSURED EMPLOYER.

(II) AT LEAST ONCE WITH THE FIRST CHECK THAT IS MAILED OUT IMMEDIATELY FOLLOWING THE NOTIFICATION SENT UNDER SUBPARAGRAPH (I).

(3) A PERSON ENTITLED TO COMPENSATION OR THEIR LEGAL GUARDIAN WHO REQUESTS TO RECEIVE COMPENSATION VIA DIRECT DEPOSIT 20230HB0760PN0963 - 2 - SHALL SUBMIT AN ACCURATE AND VALID DIRECT DEPOSIT AUTHORIZATION FORM TO THE INSURER OR SELF-INSURED EMPLOYER.

THE DIRECT DEPOSIT AUTHORIZATION FORM MAY BE SUBMITTED ELECTRONICALLY IF THE INSURER OR SELF-INSURED EMPLOYER HAS AGREED TO ACCEPT THE FORM ELECTRONICALLY.

THE INSURER OR SELF-INSURED EMPLOYER MAY NOT BE REQUIRED TO PAY COMPENSATION BY DIRECT DEPOSIT UNLESS THE PERSON ENTITLED TO COMPENSATION OR THEIR LEGAL GUARDIAN HAS SUBMITTED A VALID AUTHORIZATION FORM.

(4) THE PERSON ENTITLED TO COMPENSATION OR THEIR LEGAL GUARDIAN SHALL HAVE THE RIGHT TO CHOOSE THE DEPOSIT ACCOUNT TO WHICH PAYMENTS OF COMPENSATION ARE MADE AND MAY REQUEST TO CHANGE THE DEPOSIT ACCOUNT DESIGNATED TO RECEIVE COMPENSATION OR DISCONTINUE DIRECT DEPOSIT BY SUBMITTING A REVISED DIRECT DEPOSIT AUTHORIZATION FORM TO THE INSURER OR SELF-INSURED EMPLOYER.

THE PERSON ENTITLED TO COMPENSATION OR THEIR LEGAL GUARDIAN SHALL HAVE CONTROL AND SIGNATORY ACCESS TO THE CHOSEN DEPOSITORY ACCOUNT.

(5) PAYMENTS OF COMPENSATION MAY NOT BE SPLIT BETWEEN MULTIPLE PAYMENT METHODS, AND PAYMENTS OF COMPENSATION MADE BY DIRECT DEPOSIT MAY NOT BE SPLIT BETWEEN MULTIPLE DEPOSIT ACCOUNTS.

(6) A REQUEST TO INITIATE DIRECT DEPOSIT, CHANGE DEPOSIT ACCOUNTS OR DISCONTINUE DIRECT DEPOSIT SHALL BE IMPLEMENTED WITHIN 45 DAYS OF RECEIPT, PROVIDED THAT THE DIRECT DEPOSIT AUTHORIZATION FORM IS VALID.

(7) LUMP SUM SETTLEMENT PAYMENTS MADE AS A RESULT OF A COMPROMISE AND RELEASE AGREEMENT SHALL BE MADE BY CHECK UNLESS THE INSURER OR SELF-INSURED EMPLOYER AGREES TO MAKE PAYMENT BY DIRECT DEPOSIT.

(C) THE DEPARTMENT SHALL DEVELOP AND PUBLISH A STANDARD 20230HB0760PN0963 - 3 - DIRECT DEPOSIT AUTHORIZATION FORM FOR USE BY ALL INSURERS AND SELF-INSURED EMPLOYERS UNDER THIS SECTION.

THE FORM SHALL INCLUDE, AT A MINIMUM, THE FOLLOWING INFORMATION:

(1) THE NAME, PHONE NUMBER, MAILING ADDRESS AND EMAIL ADDRESS OF THE PERSON ENTITLED TO COMPENSATION.

(2) THE WORKERS' COMPENSATION CLAIM NUMBER.

(3) WHETHER THE PERSON ENTITLED TO COMPENSATION OR THEIR LEGAL GUARDIAN IS REQUESTING TO INITIATE DIRECT DEPOSIT, CHANGE DEPOSIT ACCOUNTS OR DISCONTINUE DIRECT DEPOSIT.

(4) THE NAME AND ADDRESS OF THE FINANCIAL INSTITUTION AND THE ACCOUNT AND ROUTING NUMBERS TO WHICH COMPENSATION SHALL BE SENT.

(5) ACKNOWLEDGMENT THAT FAILURE TO NOTIFY THE INSURER OR SELF-INSURED EMPLOYER OF ANY CHANGE IN FINANCIAL INSTITUTION OR ACCOUNT MAY DELAY RECEIPT OF COMPENSATION OR SETTLEMENT PROCEEDS.

(6) ACKNOWLEDGMENT THAT THE PERSON ENTITLED TO COMPENSATION OR THEIR LEGAL GUARDIAN SHALL NOTIFY THE INSURER OR SELF-INSURED EMPLOYER OF CHANGES IN CIRCUMSTANCE THAT AFFECT ENTITLEMENT TO COMPENSATION PAYABLE UNDER THIS ARTICLE.

(D) AS USED IN THIS SECTION, THE FOLLOWING WORDS AND PHRASES SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SUBSECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"DIRECT DEPOSIT" SHALL MEAN A CREDIT TO A DEPOSIT ACCOUNT IN A FINANCIAL INSTITUTION MADE BY ELECTRONIC FUND TRANSFER.

"ELECTRONIC FUND TRANSFER" SHALL MEAN AS THE TERM IS DEFINED IN 15 U.S.C.

§ 1693A (RELATING TO DEFINITIONS).

"PERSON ENTITLED TO COMPENSATION" SHALL MEAN AN EMPLOYE ENTITLED TO COMPENSATION UNDER THIS ARTICLE OR A PERSON ENTITLED TO COMPENSATION UNDER SECTION 307.

20230HB0760PN0963 - 4 - "VALID AUTHORIZATION FORM" SHALL MEAN A COMPLETED DIRECT DEPOSIT AUTHORIZATION FORM, AS PRESCRIBED BY THE DEPARTMENT UNDER SUBSECTION (C), WHICH CONTAINS THE INFORMATION NECESSARY FOR AN INSURER OR SELF-INSURED EMPLOYER TO INITIATE DIRECT DEPOSIT, CHANGE DEPOSIT ACCOUNTS OR DISCONTINUE DIRECT DEPOSIT.