SB 676 — 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 injuries outside this Commonwealth; in procedure, further providing for the Workmen's Compensation Administration Fund; and, in the Uninsured Employers Guaranty Fund, further providing for definitions, for fund, for claims, for claim petition, for department and for assessments and transfers and providing for uninsured employer obligations and for administrative penalties and stop-work orders.

PRIOR PRINTER'S NO.

795 PRINTER'STHE NO.GENERAL ASSEMBLY OF PENNSYLVANIA SENATE BILL Session of No.

1022676 THE2017 GENERALINTRODUCED ASSEMBLYBY OFGORDNER, PENNSYLVANIAMENSCH, SENATEFOLMER, BILLRAFFERTY SessionAND ofREGAN, MAY 4, 2017 No.REFERRED TO LABOR AND INDUSTRY, MAY 4, 2017 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;

INTRODUCED BY GORDNER, MENSCH, FOLMER, RAFFERTY AND REGAN, MAY 4, 2017 SENATOR WARD, LABOR AND INDUSTRY, AS AMENDED, JUNE 26, 2017 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;

providing procedure for the determination of liability and compensation thereunder;

and prescribing penalties," in liability andandation compensation, further providing for injuries outside this Commonwealth;

INand, PROCEDURE,in FURTHERthe PROVIDINGUninsured FOREmployers THEGuaranty <--Fund, WORKMEN'Sfurther COMPENSATIONproviding ADMINISTRATIONfor FUND;definitions, for fund, for claims, for claim petition and for department and providing for uninsured employer obligations and for administrative penalties and stop-work orders.

and, in the Uninsured Employers Guaranty Fund, further providing for definitions, for fund, for claims, for claim petition and, <-- providing for uninsured employer obligations and for <-- administrative penalties and stop-work orders.

(ii) If such employer's liability under the workmen's 20170SB0676PN1022 - 2 - compensation law of such other state is insured, such employer's 20170SB0676PN0795 - 2 - carrier, as to such employe or his dependents only, shall be deemed to be an insurer authorized to write insurance under and be subject to this act:

(c.1) If an employe alleges an injury that is incurred with an employer which is domiciled in another state and which has not secured the payment of compensation as required by this act, such employe shall provide to the Uninsured Employers Guaranty Fund and to any worker's compensation judge hearing a petition against the fund, a written notice, denial, citation of law or court or administrative ruling from such other state or an 20170SB0676PN1022 - 3 - insurer licensed to write insurance in that state as to that 20170SB0676PN0795 - 3 - employer, indicating that the employe is not entitled to workers' compensation benefits in that state.

Sections 1601, 1602, 1603, 1604 and 1605 of the <-- act are amended to read:

SECTIONSection 2.1601.

SECTIONS 446(A) AND (B), 1601, 1602, 1603, 1604, <-- 1605 AND 1607(A) OF THE ACT ARE AMENDED TO READ:

SECTION 446.

(A) THERE IS HEREBY CREATED A SPECIAL FUND IN THE STATE TREASURY, SEPARATE AND APART FROM ALL OTHER PUBLIC MONEYS OR FUNDS OF THIS COMMONWEALTH, TO BE KNOWN AS THE WORKMEN'S COMPENSATION ADMINISTRATION FUND.

(A.1) THE PURPOSE OF [THIS FUND] THE WORKMEN'S COMPENSATION ADMINISTRATION FUND SHALL BE TO FINANCE:

(1) THE PREFUND ACCOUNT ESTABLISHED IN SECTION 909(A);

AND (2) THE OPERATING AND ADMINISTRATIVE EXPENSES OF THE DEPARTMENT OF LABOR AND INDUSTRY, INCLUDING THE WORKMEN'S COMPENSATION APPEAL BOARD AND STAFF, BUT NOT THE STATE WORKMEN'S INSURANCE FUND, IN THE DIRECT ADMINISTRATION OF THE PENNSYLVANIA WORKMEN'S COMPENSATION ACT AND THE PENNSYLVANIA OCCUPATIONAL DISEASE ACT [INCLUDING].

(A.2) THE OPERATING AND ADMINISTRATIVE EXPENSES IN SUBSECTION (A.1)(2) SHALL INCLUDE ONLY THE FOLLOWING:

(1) WAGES AND SALARIES OF EMPLOYES FOR SERVICES PERFORMED IN THE ADMINISTRATION OF THESE ACTS;

20170SB0676PN1022 - 4 - (2) REASONABLE TRAVEL EXPENSES FOR EMPLOYES WHILE ENGAGED IN OFFICIAL BUSINESS;

AND (3) MONEYS EXPENDED FOR OFFICE RENTAL, EQUIPMENT RENTAL, SUPPLIES, EQUIPMENT, REPAIRS, SERVICES, POSTAGE, BOOKS, AND PERIODICALS.

(B) THE [FUND] WORKMEN'S COMPENSATION ADMINISTRATION FUND SHALL BE MAINTAINED BY NO MORE THAN ONE (1) ANNUAL ASSESSMENT PAYABLE IN ANY CALENDAR YEAR ON INSURERS AND SELF-INSURERS UNDER THIS ACT, INCLUDING THE STATE WORKERS' INSURANCE FUND[.

AFTER THE INITIAL TERM, BUDGETED EXPENSES SHALL BE APPROVED BY THE GENERAL ASSEMBLY ON A FISCAL YEAR BASIS.

THEREAFTER, THE] AS FOLLOWS:

(1) THE DEPARTMENT SHALL [MAKE ASSESSMENTS AND] SUBMIT FOR APPROVAL TO THE GENERAL ASSEMBLY ON A FISCAL YEAR BASIS A PROPOSED BUDGET SUFFICIENT TO COVER THE PREFUND ACCOUNT AND OTHER OPERATING AND ADMINISTRATIVE EXPENSES UNDER SUBSECTION (A.1).

THE TOTAL AMOUNT APPROVED BY THE GENERAL ASSEMBLY SHALL BE THE APPROVED BUDGET.

THE DEPARTMENT SHALL COLLECT MONEYS BASED ON THE RATIO THAT SUCH INSURER'S OR SELF-INSURER'S PAYMENTS OF COMPENSATION BEAR TO THE TOTAL COMPENSATION PAID IN THE PRECEDING CALENDAR YEAR IN WHICH THE ANNUAL ASSESSMENT IS MADE.

[THE TOTAL AMOUNT ASSESSED SHALL BE THE APPROVED BUDGET.] (2) IF ON JANUARY 31, THERE EXISTS IN THE [ADMINISTRATION FUND] WORKMEN'S COMPENSATION ADMINISTRATION FUND ANY MONEY IN EXCESS OF ONE HUNDRED [THIRTY-THREE] TWENTY PER CENTUM OF THE [CURRENT] APPROVED BUDGET, THE FOLLOWING FISCAL YEAR'S ASSESSMENT SHALL BE REDUCED BY AN AMOUNT EQUAL TO THAT EXCESS AMOUNT.

* * * Section 1601.

20170SB0676PN1022 - 5 - The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Secretary." The Secretary of Labor and Industry of the 20170SB0676PN0795 - 4 - Commonwealth.

20170SB0676PN1022 - 6 - (3) Interest on money in the fund.

(a) Scope.--This section shall apply to claims for an injury 20170SB0676PN0795 - 5 - or a death which occurs on or after the effective date of this article.

and 20170SB0676PN1022 - 7 - (2) the department determines that the employer failed to voluntarily accept and pay the claim or subsequently defaulted on payments of compensation.

(e) List of providers.-- (1) The fund may establish lists of at least six designated health care providers that are accessible in each county in specialties relevant to the treatment of work injuries in this Commonwealth, as referenced in section 20170SB0676PN0795 - 6 - 306(f.1)(1).

and 20170SB0676PN1022 - 8 - (ii) notify the employee of the requirements of this subsection.

(b) Amount of wages.--In a proceeding under this article, the fund shall not be liable for wage loss benefits unless the amount of wages the employee earned at the time of injury is 20170SB0676PN0795 - 7 - established by one of the following:

(6) Testimony of the uninsured employer presented under 20170SB0676PN1022 - 9 - oath at a hearing or deposition.

The 20170SB0676PN0795 - 8 - department is authorized to investigate violations of section 305 for prosecution of the uninsured employer pursuant to section 305(b) and shall pursue such prosecutions through coordination with the appropriate prosecuting authority.